European steel sheet producers have raised prices after a break at the end of the year due to the introduction of the EU Carbon Boundary Regulation Mechanism (CBAM), which will affect imports of thick sheet and steel slabs, which are widely used as raw materials by regional refiners.
CBAM was officially launched on January 1, and the products mentioned above, among other things, will become more expensive, as the cost of the required certificates will be added to the actual price of the material.
Moreover, there was still a lot of uncertainty about how this mechanism would affect import activity, which prompted market participants to postpone purchases.
Fastmarkets' weekly price estimate for domestic 8-40 mm thick rolled steel exported to Northern Europe, according to Fastmarkets, was 700 euros ($816) per ton on January 8, compared with 650-730 euros per ton on January 2.
The evaluation corresponded to the deal concluded by the German supplier during the evaluation week.
In Italy, prices for new offers ranged from 670 to 690 euros per ton from the factory, and on January 8, offers reached 700 euros per ton from the factory. Before Christmas, reasonable prices ranged from 660-680 euros per ton from the factory.
Fastmarkets' weekly price estimate for domestic 8-40 mm thick rolled steel exported to Southern Europe was 670-690 euros per ton on January 8, compared with 650-680 euros per ton on January 2.
."Consumers will need more materials from European suppliers," the Italian manufacturer said in an interview with Fastmarkets, speaking in support of the growing trend.
Import
During the reporting week, the import markets for both slabs and rolled products were extremely calm, with buyers gradually returning after the holidays and trying to assess the situation.
"The Europeans are starting to ask questions[for slabs], but they won't pay more than $485 per ton CFR," said one trader, adding that Asian suppliers are still asking for a minimum of $500 per ton CFR for their material.
"We'll see what happens to[the price]next week when someone buys," he added.
"I haven't started making any offers yet.[I am]going to look at demand first," said a source who supplies Asian slabs to Europe.
A third source reported on Asian raw material offers ranging from 500-520 USD per ton CFR.
Fastmarkets' weekly price estimate for steel slabs, imported from Italy, cif, was $485-520 per ton on January 8, compared with 500-520 euros per ton on January 2.
Market sources said that buyers will be looking for discounts to offset the cost of CBAM certificates.
Author: Vlada Novokreschenova
Fastmarkets.com
