European suppliers of hot-rolled steel coils remained optimistic on Wednesday, February 11, testing the market with higher prices. Meanwhile, buyers continued to resist the price increase, saying they did not need to restock.
The German supplier offered a roll for delivery in April at a price of 680 euros ($808) per ton from the factory, but market sources considered this price unacceptable.
Earlier this week, it was reported about an offer from a leading European steel producer at a price of 700 euros per tonne delivered (about 685 euros per tonne from the plant).
Buyers, however, estimated possible prices no higher than 650-660 euros per ton from the factory, citing low sales in the secondary market.
"We don't need to restock right now.[We need]only urgent orders to cover the shortage of supply," Fastmarkets reported at the metalwork service center in Germany.
"The demand for cars is not improving. There is no chance of raising rates[for coil]," another German source said.
.The daily price index for Fastmarkets hot-rolled steel for domestic consumption in Northern Europe (exw) on Wednesday was 652.50 euros per ton, down by 1.67 euros per ton from 654.17 euros per ton on Tuesday.
Nevertheless, the indicator increased by 1.50 euros per ton week-on-week and by 17.50 euros per ton month-on-month.
The daily price index for Fastmarkets hot-rolled steel for domestic consumption (exw, Italy) on Wednesday was 647.17 euros per ton, 2.17 euros higher than on Tuesday, compared with 645.00 euros per ton.
The indicator decreased by 0.33 euros per ton week-on-week, but increased by 17.17 euros per ton month-on-month.
In Italy, proposals were announced for the supply of HRC in April at a price of about 660 euros per ton from the factory. But earlier this week, trade sources reported that some suppliers are testing the market, offering about 685 euros per ton from the factory.
On the part of the buyer, estimates of an acceptable market level were announced at the level of 645-650 euros per ton from the plant, confirmed by transactions in this range.
One trader said that the delivery time for HRC in Italy is still eight weeks, but is no longer increasing.
Author: Yulia Bolotova, Marina Shulga
Fastmarkets.com
