On Monday, January 5, the domestic European hot-rolled steel market was mostly quiet, as most market participants had not yet returned to work after the New Year holidays.
Several sources reported that no price changes have been announced since mid-December, and the estimated acceptable level is 630 euros ($738.22) per ton from the plant.
This is comparable to the official offers of plants in Northern Europe for February/March - the delivery price is 630-670 euros per ton from the factory or with delivery before the holidays.
"People are telling me the same stories and numbers today as they did in mid-December. By the middle or the end of this week, several more responsible managers will return. Currently, people are waiting for momentum, but prices are expected to rise," one trader said in an interview with Fastmarkets.
The introduction of the Carbon Boundary Regulation Mechanism (CBAM), an environmental policy tool for the fair pricing of carbon emissions associated with steel products imported into the EU, from January 1 will lead to an increase in the cost of imported steel products, in particular HRC, which will help domestic producers strengthen their positions.
The daily HRC steel price index from Fastmarkets in the domestic market, after production in Northern Europe on Monday, amounted to 630 euros per ton, which is 2.50 euros higher than on January 2.
The index rose by 2.50 euros per tonne week-on-week and by 7.50 euros per tonne month-on-month.
The Italian market was quiet, and participants were expected to return on January 7th. No new offers were received on January 5.
The latest estimates of buyers regarding acceptable prices were made at the level of 610-620 euros per ton from the factory before Christmas.
Proposals for delivery in February at a price of 610-640 euros per ton from the factory, depending on the supplier, were heard.
The daily HRC index for Fastmarkets steel for Italian production on Monday was 623.12 euros per ton, unchanged from January 2.
The indicator remained stable week after week and increased by 9.79 euros per ton on a monthly basis.
Author: Vlada Novokreschenova
Fastmarkets.com
