The prices of hot rolled steel (HRC) in the domestic markets of Northern Europe, Spain and Central Europe increased, while in Italy they decreased, despite the limited supply. According to sources, metallurgical plants are trying to raise quotations against the background of rising production costs and rising electricity prices.
In Northern Europe, trading activity remained low: final demand was weak, and buyers were in no hurry to enter the market. At the same time, factories were feeling pressure due to rising costs. The latest data on achievable levels were in the range of 730-750 euros per ton on ex-works terms, and one of the trade sources called 750 euros per ton a realistic level for supplies of the main grades and sizes in October.
The same source expected that under contracts for the fourth quarter, buyers would pay 760-770 euros per ton of ex-works.
At the same time, one of the distributors was skeptical about the possibility of such an increase.
"The problem is that demand is weak and energy is extremely expensive," the source said, adding that over the past four months, the cost of electricity in Europe has increased by more than 50%.
According to the distributor, factories raise prices to offset production costs. At the same time, there was no significant import activity: import quotas decreased, and duties on shipments in excess of quotas increased. It was reported that the most advantageous offer for importing HRC to Northern Europe from India was 700 dollars per ton CFR, or about 605 euros per ton CFR, but there was no confirmation of new deals.
As a result, Fastmarkets' daily price index for hot-rolled steel in the domestic Nordic market, calculated on September 16, amounted to 745 euros per ton, or 859.63 dollars per ton, which is 6.67 euros higher than on September 15 — 738.33 euros per ton. During the week, the index decreased by 5 euros per ton, but during the month it increased by 26.25 euros per ton.
There was also no noticeable trading activity in Italy, while sources said that buyers were not too concerned about the supply reduction yet. Earlier, the Milan Court of Appeal confirmed the order to close the hot production site at the former Ilva plant in Taranto by October 28, and Ferriera Valsider still has not resumed HRC supplies.
The best deals on the Italian market were at the level of 750 euros per ton with delivery, which corresponds to about 730 euros per ton of ex-works. At the same time, the expected levels were indicated in the range of 720-730 euros per ton of ex-works. One of the distributors said that the plants are ready to discuss a discount of 15-20 euros per ton on the offer of 730 euros per ton of ex-works, that is, about 710-715 euros per ton of ex-works. However, other sources have not confirmed these lower levels, and they
