In Italy, the import of rolls resumed
Roll prices in Italy continue to rise compared to the beginning of February, although activity in the domestic market remains relatively low. Both small and large buyers have resumed purchases on the import market, according to market participants Kallanish.
Despite the uncertainty surrounding CBAM prices, large buyers continue to purchase products directly from Asia. One of the sources reports that they are working closely with suppliers on CBAM certification and are confident that several foreign plants will meet the actual emissions figures, as they intend to maintain their share in the European market. Smaller buyers, meanwhile, report purchases only on duty-free shipping (DDP) terms to limit the risk.
The trader notes that some traders are willing to accept the CBAM risk by offering ddp terms, while others are reluctant due to the potentially prohibitive impact of default CBAM values. Several large buyers say that they are taking a certain risk because of their significant needs for HRCs. They rely on long-standing relationships with Asian and Middle Eastern suppliers. They expect CBAM fees for their purchases to remain in the range of 50-60 euros per ton (58.94-70.73 dollars per ton).
About ten days ago, deals worth about 600-610 euros per ton were concluded. However, since then, the supply from Turkey and North Africa has increased to 620-640 euros per ton. According to rumors, the cargo from the Middle East was sold at a price slightly below 530 euros per ton cif. One service center says that the current domestic prices of 650-660 euros per ton are justified, given that the price of hot-rolled sheet is about 750 euros per ton. Processing volumes remain at a low level.
Currently, the base price for HRC in the domestic market is about 650 euros per ton. Market sources indicate that ArcelorMittal has exhausted its resources for Southern Europe. Currently, the manufacturer plans to supply HRC in Southern Europe at a price of 750 euros per base ton, while the asking prices in Northern Europe remain at around 720 euros per base ton.
.The availability of cold-rolled coils remains limited, and the supply of hot-dip galvanized material is also limited. The contract prices for CRC and HDG are expected to be 800 euros per base tonne delivered, compared to the current level of around 780 euros per tonne delivered, Kallanish reports.
Italian manufacturers are targeting HDG prices of 810-820 euros per ton, while several other European plants report low availability of CRC or its complete absence. HDG supply offers to Italy from other European suppliers amount to 800-820 euros per ton.,