In the last week of March, the Iberian hot-rolled steel market saw an increase in prices. Demand, however, remains weak amid cautious buyer behavior, according to Kallanish market sources.
"Rising prices are holding back consumption, and most retailers expect further risks to demand due to increased costs as a result of geopolitical tensions," says one seller. "It is difficult to predict when the market will recover."
In addition to the effects of the US-Israel-Iran war, customers are also concerned about the impact of the Carbon Dioxide Emissions Control Mechanism (CBAM) on their orders placed in January.
"The introduction of CBAM makes import prices uncompetitive compared to prices in Spain, which are already higher. This, combined with rising transport and energy costs, is currently significantly reducing consumer interest," the source explains.
Spanish steel distributors say that prices for HRC steel for April shipments will remain high, confirming the reluctance of local producers to make concessions.
Prices for HRC in Spain are currently 700-710 euros per ton (807.98-819.50 US dollars). Distributors' prices exceed 730 euros per tonne delivered.
Author: Todor Kirkov Bulgaria
Kallanish.com
