Overview of European steel and "green" steel: roll prices are supported by lack of import competition
European roll prices rose at the end of the week amid market conditions that are increasingly inclined to rise, given the easing of import pressure and an increase in orders for regional producers.
Increase in supply prices
The supply of hot rolled coils (HRC) in Northwestern Europe was about 590 euros per ton, while most plants increased their supply prices to this level by about 30 euros per ton compared to the prices of the previous offer.
"The factories seem to have collected enough orders to calmly hold back and increase supply," said a source at a trading company.
"After the low-price sales over the past month, the steel mills' order situation has become much better," the distributor agreed. - customers will soon realize that they have exhausted their options. they will find an alternative to imports and will start accepting higher prices."
Nevertheless, sources on the buyers' and sellers' sides still saw an opportunity at the end of the week to conclude last-minute deals at a price of about 550-560 euros per ton from the factory. A source at the German service center said that an offer from a leading plant in this range was valid until the end of the day, while a distributor from Benelux reported a rejection of the supply request in the amount of 550 euros per ton (equivalent to about 540 euros per ton from the plant).
In Southern Europe, the Italian market has experienced a similar supply increase – although not as much as in the North – with a bid of 580 euros per tonne from the buyer. A producer source reported more "realistic" offers on the market, which amount to about 550 euros per ton from the plant, while buyers' prices are 520 euros per ton from the plant, and considered that current and short-term deals fall under this spread.
Reducing import pressure
It was stated that reducing import pressure is the main factor encouraging factories to raise supply prices, as uncertainty over the carbon emissions Regulation Mechanism (CBAM) and the possible acceleration of the European Commission's long-term replacement of the EU steel protection system threaten unpredictable duties on current import dates in January.
"CBAM is still a major concern for us," said a distributor from the north. "To be honest, buying raw materials only from local factories will certainly be less risky."
Trade sources said that while Indian, Algerian and Turkish raw materials could technically still arrive in time to avoid CBAM obligations, protective quotas could be exhausted by then, requiring supplies.