European prices for hot-rolled steel remained stable on Tuesday, March 24, and limited domestic and import supplies supported optimistic sentiment in the short term, Fastmarkets sources said.
European suppliers have mostly run out of inventory for May shipments, and some have also run out of inventory for the second quarter.
According to sources, one local supplier in Germany did not have spot supplies of HRC.
It was heard that other plants were offering a roll for delivery in May-June at a price of 730 euros ($845) per ton, delivered as standard.
One of the leading European suppliers is rumored to have received 720-730 euros per ton from the plant with limited production volumes of HRC - more or less in line with the target supply offers in May, but has not yet been in a hurry to review the offers, the sources said.
It was reported about a target offer from a Benelux supplier for June shipments at a price of 725 euros per ton from the plant.
"Most likely, there will be no major changes in the market before Easter[celebrated on April 5], but on the eve of the pipe and wire exhibition[held on April 13-17 in Dusseldorf, Germany], European factories may again revise their offers upward – now it is a sellers' market," said the German buyer.
On Tuesday, buyers' estimates of achievable prices in Germany, the Benelux countries and Northern Europe were announced at the level of 700-720 euros per ton from the manufacturer.
Recently, buyers have been paying attention to European steel as import risks have increased due to uncertainty over CBAM prices, unstable freight charges, increased lead times amid tensions between Iran, the United States and Israel, and looming guarantees.
As a result, Fastmarkets' daily hot-rolled steel roll price index for domestic and exw sales in Northern Europe was 716.00 euros per tonne on Tuesday, down slightly by 1.50 euros per tonne from 717.50 euros per tonne on Monday, March 23.
The indicator increased by 5.87 euros per ton week-on-week and by 34.12 euros per ton on a monthly basis.
Meanwhile, in the secondary market, steel service Centers (SSC) have increased prices for 4 mm S235 rolled steel to 800 euros per ton, and deals at this level have already been reported. However, sporadic sales at the level of 760-770 euros per ton of CPT and below continued to put pressure on price stability.
According to the SSCs, prices were expected to rise to 820-830 euros per tonne of CPT to reflect the higher costs of HRC, but end users continued to put up stubborn resistance, resulting in the refining market lagging behind the growth trend of HRC.
In Southern Europe,
