The situation in the European domestic market of hot-rolled rolled steel (HRC) continued to strengthen despite subdued demand, while competition with imports weakened after the introduction of the EU Carbon Boundary Regulation Mechanism (CBAM), Fastmarkets reported on Monday, January 26.
"End-user demand remains cautious, but expectations of a gradual price increase persist amid uncertainty related to CBAM, which encourages buyers to prefer European materials," said a buyer from the Benelux region.
A manufacturer from the same region reported that the official HRC offers, which are scheduled for delivery in April, amount to 685 euros ($803) per ton from the plant, which meets the requirements of the market leader.
Nevertheless, estimates of real prices for delivery in April ranged from 650-660 euros per ton from the manufacturer. This is still higher than the 640-645 euros per tonne reported in recent estimates of acceptable prices for rolls delivered in March, which were still available from some suppliers in Northern Europe.
On January 26, the daily price index for Fastmarkets hot-rolled steel for domestic consumption in Northern Europe was 646.25 euros ($764.64) per ton, which is 3.75 euros higher than 642.50 euros per ton on January 23.
The indicator also increased by 5.62 euros per ton week-on-week and by 18.75 euros per ton month-on-month.
In Italy, proposals were heard for the supply of HRC in February and March at a price of 650 euros per ton from the factory, while some suppliers were willing to make concessions up to 630 euros per ton from the factory, but others remained adamant.
Estimates of real prices ranged from 630-640 euros per ton from the manufacturer.
As a result, the daily price index for Fastmarkets hot-rolled steel for domestic consumption (exw, Italy) on Monday was 637.50 euros per ton, compared with 635.00 euros per ton on Friday.
The indicator increased by 5.83 euros per ton week-on-week and by 14.38 euros per ton on a monthly basis.
"Roll prices in Italy have increased slightly, driven by limited import competition and growing interest in EU suppliers," one market source said.
The price for HRC of Asian origin was 610-620 euros per tonne of DDP, while the Turkish offer of HRC was announced at 510 euros per tonne of CFR, excluding anti-dumping duties and costs related to CBAM.
"Most service centers are still reluctant to take responsibility for CBAM," the source added, "and prefer prices that fully take these costs into account."
Author: Vlada Novokreschenova
Fastmarkets.com
