Prices for thick-rolled products in Northern Europe continued to rise during the week to Thursday, January 29, amid increased supply, but bidding remained subdued.
Meanwhile, prices for Italian cuisine in the domestic market have remained unchanged for the second week in a row, despite optimistic offers and new orders.
Northern Europe
Prices in Northern Europe have risen over the past seven days amid growing supply and subdued import demand due to uncertainty about the carbon dioxide Emissions Control Mechanism (CBAM) and cost considerations.
During the price session, higher offers were made for supplies in April and even in May, ranging from 750 euros ($898) to 820 euros per ton from the factory.
Fastmarkets' weekly price estimate for domestic 8-40 mm thick rolled steel exported to Northern Europe on Thursday was 750-780 euros per ton, up 30 euros from 720-750 euros per ton a week earlier.
But bidding was still sluggish, and one distributor reported that competitive prices for rolled sheets, which are a cheaper option for limited end-use, encourage some buyers to be reluctant to accept higher market prices.
Concerns remain about CBAM, the EU's recently introduced carbon tax on imports based on embedded emissions, with a trader source describing uncertainty about "definitively undetermined costs" of CBAM and future tougher safeguards.
"[The uncertainty]makes it very difficult for importers to develop clear business action plans for all types of consumers and steel producers in compliance with the necessary certification procedures to comply with these rules," a source in the trading company told Fastmarkets.
Italy
Prices for Italian rolled steel in the domestic market of Southern Europe remained stable after new deals at the level of 700-720 euros per ton from the factory.
Fastmarkets' weekly price estimate for domestic 8-40 mm thick rolled steel exported to Southern Europe was 700-720 euros per ton on Thursday, unchanged week-to-week.
But Italian refiners continued to strive for a higher market level, offering 680-750 euros per ton from the factory during the week.
A source in one of the manufacturers said that there is a "large volume of sales" in the region, and deliveries will begin in March.
In addition, steel slab import prices to Italy have also increased over the past two weeks, mainly due to uncertainty about CBAM prices.
"The biggest problem for Southern Europe is where to get slabs at reasonable prices and in quantities as required.
