Prices for hot-rolled steel products in Europe have increased as suppliers have limited the supply of tonnage in growing markets, Fastmarkets sources said on Thursday, March 12. The positive sentiment, supported by a shortage of imports, continues to dominate the European flat-rolled steel market.
It was stated that European manufacturers are limiting the tonnage offered to the market in order not to "overdo it" and maintain flexibility in the event of further price increases.
During the week beginning on Monday, March 9, offers for delivery in May were reported at a price of 710-750 euros (823-870 dollars) per ton, including shipments (about 690-735 euros per ton from the plant) from integrated suppliers in Northern Europe.
It was heard that a roll of Italian production was offered to Italy at a price of 720-730 euros per ton, but in limited quantities.
It was reported that during the week deals were concluded in Germany and the Benelux countries for the supply of limited quantities of HRC at a price of 710-720 euros per ton from the factory.
Some buyers retreated from the market, digesting the price increase.
"We do not make bookings at such levels[above €700 per tonne ex-works]. The last deals we made for several thousand tons cost about 700 euros[per tonne ex-works]," said the German buyer.
Estimates of achievable prices, for the most part, were in the range of 700-710 euros per ton at the manufacturing plant from stakeholders in the industry.
As a result, on March 12, the daily price index for Fastmarkets hot-rolled steel for domestic sale, exw in Northern Europe was 707.19 euros per ton, which is 1.21 euros more than 705.98 euros per ton on March 11.
The indicator increased by 6.56 euros per ton week-on-week and by 52.19 euros per ton on a monthly basis.
After the index was published, a deal was also reported at a price of 730 euros per ton from the plant, but so far it has not been widely confirmed in the market.
Meanwhile, in Southern Europe, Fastmarkets calculated that on March 12, the daily price index for hot-rolled steel for domestic consumption in Italy was 692.50 euros per ton from the factory, up 3.75 euros from 688.75 euros per ton on March 11.
The indicator increased by 12.50 euros per ton week-on-week and by 41.50 euros per ton month-on-month.
The local combine has kept the offers at 710-720 euros per base tonne delivered[around €695-705 per tonne ex-works]with limited flexibility regarding discounts, the sources said.
Offers were received from resellers at a price of 700 euros per ton from the factory.
The buyers estimated the market level at 680-690 euros per ton from the factory.
In the secondary market, during the week that began on March 9, some steel maintenance centers (SSC) stated that the price of S235 grade HR sheet with a thickness of 4 mm has reached
