Prices for flat rolled products in the European domestic market continued to rise during the week to Thursday, March 12, due to rising production costs following the outbreak of a new conflict in the Middle East and continued import restrictions affecting the market, trade sources said.
After the start of the US-Israeli-Iranian conflict last month, the situation in the region escalated, affecting trade routes and logistics, as well as leading to a sharp increase in energy prices in Europe and an increase in the cost of raw materials, Fastmarkets reported.
Market sources said that speculative demand has increased due to changes in geopolitical dynamics, adding that consumption levels in the European market remain low.
But while manufacturers raised prices as a result of the growing interest in domestic products to avoid the risks associated with imported materials, it was still unclear whether demand was high enough to cover all the increases, market sources said.
Meanwhile, the factories were rumored to be busy and in no hurry to place new orders.
Domestic
In Northern Europe, domestic prices for cold-rolled and hot-dip galvanized coils rose in the week to Wednesday
.Fastmarkets' weekly estimate of prices for cold-rolled steel for domestic consumption in Northern Europe as of March 11 was 790-830 euros ($912-958) per ton, compared with 785-790 euros per ton a week earlier.
Meanwhile, the weekly price estimate for hot-dip galvanized steel coil, domestic, exw in Northern Europe, was 790-830 euros per ton, an increase from 795-800 euros per ton in the previous estimate.
The new estimate coincided with higher estimates of real levels reported by market sources.
In Southern Europe, domestic CRC and HDG prices have remained largely unchanged.
Fastmarkets' weekly price estimates for CRC, domestic, and exw steel in Southern Europe on Wednesday were 805-820 euros per ton, up from 805-810 euros per ton in the previous week.
The new upper limit of the range was due to the receipt of offers at a price of 820 euros per ton from the factory.
The weekly price estimates for HDG, domestic, and exw steel in Southern Europe were stable at 785-790 euros per ton on Wednesday.
Import
Meanwhile, import prices for these products did not change on Wednesday, and no new auctions were reported during the reporting week.
.Import activity has been limited following the introduction of the EU Border Carbon Emissions Regulation Mechanism (CBAM) earlier this year and other trade regulations that still affect customer demand for imported coil, Fastmarkets reports.
The weekly price estimate for CRC steel, an import, the main CFR port in Northern Europe, was stable at
