European hot-rolled coil prices stabilized in the week to Thursday, February 5, despite increased supply from key suppliers, while sentiment remained cautiously positive, sources said, although this was more due to regulations restricting imports than a recovery in demand.
European flat-rolled manufacturers were counting on higher prices for rolls delivered in April, as, according to reports, the March range was almost sold out by most sellers.
The new offers ranged from 670 euros ($792) per ton to 685 euros per ton at plants in Germany and the Benelux countries.
One German supplier, which was actively selling large-tonnage HRC for March delivery at about 620 euros per ton (605-610 euros per ton from the factory) at the end of January, stopped accepting lower rates about two weeks ago and has now coordinated its offers with other suppliers in the region, Fast Food Markets sources said.
However, some sources reported that the supplier's sales division can still sell HRC quite actively outside of Germany, for example, in Italy, Poland and other countries.
The Italian HRC, meanwhile, was offered to Germany at a base price of 700 euros per ton, according to Fastmarkets, although, according to sources, the deals did not exceed 670-680 euros per ton.
In general, according to buyers' estimates, the market value of HRC in Northern Europe fluctuated at about 650 euros per ton from the factory, while suppliers gave higher estimates - about 660 euros per ton from the factory.
"The upward trend that we have observed since the beginning of January has stopped at the moment – new offers far exceed real market levels. But given the import situation, in a few weeks we will probably see more proponents of higher prices," said one of the producers in the region.
"Demand is not completely exhausted – we receive requests quite regularly, and[HRC]stocks accumulated in anticipation of the introduction of CBAM[Carbon Border Adjustment Mechanism]will soon run out," said another supplier.
As a result, the daily price index for Fastmarkets hot-rolled steel in the domestic market, exw in Northern Europe on Thursday was 651.25 euros per ton, 0.25 euros higher than 651.00 euros per ton on Wednesday, February 4.
The indicator decreased by 4.58 euros per ton week-on-week, but increased by 21.25 euros per ton month-on-month.
The corresponding daily price index for Fastmarkets hot-rolled steel coils in the domestic market, exw in Italy, was calculated on Thursday at 647.50 euros per ton, which is stable from day to day.
The indicator increased by 4.17 euros per ton week-on-week and by 24.38 euros per ton on a monthly basis.
