European prices for hot-rolled steel were mostly stable on Tuesday, January 27, with buyers still interested in higher offers, and the EU Carbon emissions Regulation mechanism (CBAM) is still the main driver of recent price increases in the domestic market, trade sources told Fastmarkets.
In Northern Europe, the largest integrated enterprises followed the example of market leader ArcelorMittal and also announced price increases for rolls for delivery in April.
It is noteworthy that in Germany, offers were reported at a price of 670-675 euros (799-805 dollars) per ton for delivery in April, while a supplier from the Benelux countries hoped to receive about 675-680 euros per ton from the factory.
ArcelorMittal maintained its offers at 700 euros per tonne delivered (685-690 euros per tonne from the plant) for April volumes
.According to market sources, the main suppliers in the region have already sold out almost all supplies in March.
There have been no new offers for any deals yet, and buyers estimate achievable prices at 640-660 euros per ton from the factory.
"There is no serious replenishment of stocks yet, but the plants are well staffed and in absolutely no hurry," said a German buyer. "However, buyers won't have much choice – importing because of CBAM is a real disaster."
As a result, the daily price index for hot-rolled steel in Fastmarkets, domestic, exw in Northern Europe, was 649.50 euros per ton on January 27, which is 3.25 euros higher than 646.25 euros per ton on January 26.
The indicator increased by 8.75 euros per ton week-on-week and by 22.00 euros per ton month-on-month.
The corresponding daily price index for hot-rolled steel coils, domestic, with delivery to Italy, was calculated at 637.96 euros per ton on Tuesday, having increased by only 0.46 euros per ton from 637.50 euros per ton the day before.
The indicator increased by 6.29 euros per ton week-on-week and by 14.84 euros per ton on a monthly basis.
According to several market sources, Italian manufacturers could still offer coils for delivery in March.
Target offers were announced at a price of 670-680 euros per tonne delivered (655-665 euros per tonne from the factory).
Buyers estimated the achievable prices at 630-640 euros per ton from the factory, which corresponds to the latest deals.
"Italian suppliers have increased their supply by[January 23], following the example of ArcelorMittal, but these new prices have not yet been accepted by buyers," a trade source in Italy said.
Industry sources agreed that the introduction of CBAM and its impact on new imports remain the main reason for the recent price increases in the European market.
"CBAM has turned the import business into a casino – we
