European prices for hot-rolled steel remained stable on Tuesday, January 13, despite calm trading, and positive sentiment in the domestic market was largely driven by changes in legislation restricting imports, Fastmarkets sources said.
European steel markets are still recovering from the winter holidays, and buyers are in no hurry to replenish stocks, Fastmarkets reports.
"Trade remains weak," a source at the plant said. "Customers accelerated their orders in the fourth quarter, ahead of[the implementation of the]The Carbon Boundary Adjustment Mechanism (CBAM), and we have booked more than usual, so there is no urgent need for restocking now.
"But we will see inventory replenishment for the second quarter in late January and early February," a source at the plant added.
As for the hot-rolled roll, it was reported that supplies to the February plants were mostly sold out, and some suppliers had only small batches left. Prices for these tons from the factory ranged from 630-640 euros (735-747 dollars) per ton.
With supplies in March and April, the plants sought to bring prices closer to 650-670 euros per ton from the plant, the source said. And some suppliers even offered higher prices for supplies in the second quarter to "test the waters" at around 680-700 euros per ton from the plant, according to one market participant.
Buyers, however, said that such levels remain only "wishful thinking," given the still low demand from end users.
"We can realistically say that we will be able to reach 650 euros in the near future, but the increase will be difficult because it is difficult to transfer any price increase to the refining market," a source at a steel production service center in Germany told Fastmarkets.
Another source said that a deal was signed on Tuesday to supply a small batch of HRC in March to Germany at a price of 650 euros per ton from the plant.
But most sources of customer information still indicate an acceptable level of 630-640 euros per ton from the factory.
The daily price index for Fastmarkets hot-rolled steel for domestic consumption in Northern Europe was 638.33 euros per ton on January 13, which is only 2.70 euros more than 635.63 euros per ton on January 12.
The indicator increased by 8.33 euros per ton week-on-week and by 16.66 euros per ton on a monthly basis.
In Southern Europe, the corresponding daily price index for Fastmarkets hot-rolled steel for domestic consumption (exw, Italy), calculated on Tuesday, was 629.27 euros per ton, which is 1.77 euros higher than 627.50 euros per ton on Monday.
The indicator increased by 6.15 euros per ton week-on-week and by
