Prices for hot-rolled coils in Europe continued to rise in the domestic market, which was facilitated by the increased roll production time and the lack of significant competition from imports. As buyers faced limited availability of rolls from regional manufacturers and a small number of foreign offers at attractive prices, factories gradually raised prices despite subdued demand.
Manufacturers gradually began offering rolls for delivery in May, and some factories filled out their purchase order lists in April.
Market leader ArcelorMittal announced offers for Northern Europe for rolls for delivery in May at 720 euros ($848.35) per tonne delivered last week, including a return to 705 euros per tonne from the factory.
Factories in Germany followed the price course set by the market leader, offering 700 euros per tonne from the factory for delivery in May, compared with 680 euros per tonne from the factory for delivery in April.
A producer from the Benelux countries showed a less optimistic increase in supply, offering rolls for delivery in May at a price of 680 euros per ton from the factory, compared with 670 euros per ton for delivery in April.
"Italian and German manufacturers of rolled products continue to raise prices, following the example of ArcelorMittal, despite sluggish activity in the market. Manufacturers cite long lead times and limited competition from imports as key support factors," said one customer.
Buyers were still slow to react to the price increase, and last week some small volumes were sold from the factory at a price of 690 euros per ton. This week, buyers continued to say that such a price was only possible for small shipments, while estimates of real prices ranged from 650-680 euros per ton from the factory, while no major sales were heard during the day.
"Prices definitely do not depend on demand, but rather on fears of higher import costs[carbon Border Adjustment Mechanism and safeguard]," another source said.
The daily price index for Fastmarkets hot-rolled steel in the domestic market, exw in Northern Europe on Monday, February 23, amounted to 682.29 euros per ton, which is 2.29 euros higher than on Friday, February 20, by 680 euros per ton.
The indicator increased by 22.29 euros per ton week-on-week and by 39.79 euros per ton month-on-month.
Italian manufacturers followed a similar strategy. Offers for the supply of rolls in May ranged from 680-700 euros per ton from the manufacturer, depending on the manufacturer. In April, the rolls with delivery were available at a price of 670-680 euros per ton from the manufacturer.
Estimates of real
