Import restrictions remain the dominant force supporting the domestic hot rolled steel market in Europe.
Constant import restrictions continue to be a key factor in the growth of domestic prices for hot-rolled coils in Europe, as Fastmarkets reported on Friday, February 27.
The decrease in import activity is explained by the effect of the New Carbon Limit Control Mechanism (CBAM) The EU and expectations of a new trade regime.
Offers from integrated plants in the region were heard at a price of 700-720 euros (826.27–849.88 USD) per ton of supply (about 680-705 euros per ton on a free-of-charge basis).
Most sellers said they had mostly sold out of rolls for delivery in April, and now had open order books for delivery in May.
Estimated achievable prices on a free-of-charge basis are 670-690 euros per ton of rolls for delivery in April, depending on tonnage.
Although some sellers described demand as generally low, they confirmed that customers, including service centers, continue to book volumes.despite the ample stocks, as buyers realize that the effects of import regulation are real, and prices in the domestic market will continue to rise.
The same sources on the sellers' side reported on February 27 that price growth would be moderate in the coming weeks, while real demand would remain slow.
Fastmarkets' daily index of hot-rolled rolled steel in the domestic market, excluding shipments to Northern Europe, was 686.07 euros per ton on February 27, increasing by 6.07 euros per ton on a weekly basis compared to the previous month and by 36.57 euros per ton on a monthly basis.
The corresponding daily index of Fastmarkets hot-rolled rolled steel in the domestic market excluding Italy on Friday was calculated at 670.63 euros per ton, stable day after day.
The index rose by 9.31 euros per tonne per week compared to the week and by 32.67 euros per tonne per month compared to the month.
HRC's proposals for delivery in May were heard at a price of 700-720 euros per ton of supply (about 685-705 euros per ton free-of-charge) from integrated suppliers and transporters.
Trading levels were still 680-690 euros per tonne of supply (about 665-675 euros per tonne on a free-of-charge basis).
One customer said that for small tonnages it is possible to reach 680-685 euros per ton on a free-of-charge basis.
The latest import offers for HRC from Turkey were priced at 640 euros per tonne DDP and 630 euros per tonne.tons of DDP from Algeria.
Author: Vlada Novokreschenova
Fastmarkets.com