The European HRC market is quieting down as buyers await clarity on CBAM, guarantees
European hot-rolled steel markets remained subdued on September 18, with sentiment driven by weak demand and continued uncertainty about upcoming legislative changes.
Market participants described trading as "very slow," and most buyers refrained from replenishing stocks until they received clearer guidance from CBAM criteria and protective measures. "Factories are having a hard time concluding deals because there is too much uncertainty," one of the sources said, adding that the situation was unlikely to improve before October.
Prices in the domestic market were quoted at 550-560 euros per metric ton from the factory in Italy and 565-570 euros per ton from the factory in Italy. The Ruhr, while the supply of mills reached 570 euros per ton for delivery to Italy and up to 620 euros per ton for delivery to Germany. Buyers, however, said that such offers were largely unfeasible due to the availability of cheaper imports.
Import activity provided a certain direction: Turkish and Indian offers cost 520-530 euros per ton of CIF in Italy and Antwerp, while Indonesian raw materials were offered at 485-490 euros per ton of CIF, depending on volumes. However, sources warned that the risks associated with shipments from Southeast Asia are holding back orders.
Meanwhile, traders noted that the price difference between European and imported cold-rolled metal could increase if investigations or new measures limited the influx.
"It's not good for end consumers, but buyers always find a way to find a source," said one of the distributors.
In response, the European Commission initiated an anti-dumping investigation into imports of cold-rolled flat products from India, Japan, Taiwan, Turkey and Vietnam. to the allegations that below-cost prices are damaging the domestic EU steel industry.
Platts estimated HRC in Southern Europe at 555 euros per tonne with delivery to Italy, which is 5 euros higher than the previous day, and in Northern Europe at 570 euros per tonne with delivery to the Ruhr, which is stable every day.
Platts estimated imports of HRC at 480 euros per ton of CIF in Southern Europe and 480 euros per ton of CIF in Antwerp, which is 5 euros lower than the day before.
Brother Sakha |Charles Thompson
spglobal.com