Domestic HRC prices in Europe remain at the same level; some import orders are being identified, despite looming CBAM risks
Hot-rolled steel prices in Europe continued to stabilize in the week to Friday, September 12, with slow demand hampering mill's attempts to raise prices, Fastmarkets sources said.
Quiet trading conditions prevailed in the European HRC market for the week on Friday, amid a lack of the usual bullish momentum after the summer break – mainly due to a lack of end-user support, Fastmarkets understands.
Several large buyers told Fastmarkets they have no intention of restocking, but by purchasing sufficient volumes in July and August.
"Prices[for HRC]have been stable over the last three to four weeks[and]the mill has been trying to get higher prices not because demand just doesn't exist and the market is oversaturated," a buyer in Germany said.
"Milling cutters, however, do not need to be removed before long-term contract negotiations with automotive[customers]," buyer added.
The estimated cost of a buyer of commodity values for human rights in Northern Europe ranged from €570 per ton and €590 per ton of Ex-work.
. This contrasts with the offers received at €600-630 per ton of HRC Ex-work with delivery in October-November.
The sources said they expected the next replenishment cycle for early October, but added that volumes were likely to remain limited.
Fastmarkets’ calculation of the daily steel index HRC, domestic, pickup of Northern Europe, €580.00 ($679.27) per ton on September 12, decreased by €0.83 per ton from €580.83 per ton on September 11.
The Nordic index was €1.67 per tonne week-on-week and €8.99 per tonne compared to the previous month.
In Southern Europe, meanwhile, Fastmarkets matching Italy's daily hot-rolled steel coil index EXW was priced at €548.50 per tonne on Friday, up by €1.00 per tonne from €547.50 per tonne on Thursday.
The Italian index is up and down at €2.33 per tonne week on week, but that's up by €8.50 per tonne compared to the previous month.(0:11 prices)for HRC, the Italian market was also quite stable against the background of the trading society.
The buyer estimates the achievable prices of the Pi reported at 540-550 per ton of Ex-work, while the mill receives offers for €580-600 per ton delivered (€570-585 per ton on a free-of-charge basis).
"The main[price]trend reversal is not happening," Fastmarkets told its buyer in Italy. "Yes,[HRC]prices have stopped falling and have generally stabilized over the past few weeks, but there has been no significant rebound."
Offers for foreign goods in Europe remained virtually unchanged in the week leading up to Friday, with two major deals reported.
About 40,000-42,000 tons of HRC were ordered from Saudi Arabia for delivery in September, with the majority