European HRC prices are rising, and import restrictions continue to affect sentiment
European prices for hot-rolled rolled steel were slightly higher on Tuesday as import restrictions were seen as the main driving force behind the uptrend, Fastmarkets sources said on March 10.
Integrated HRC manufacturers in Northern Europe mainly offer rolls for delivery in May, according to Fastmarkets. In addition, amid rising prices for HRC, suppliers have become more cautious about allocating volumes, trying to avoid excessive tonnage costs and possibly miss the opportunity for further price increases, Fastmarkets believes.
In Germany, offers were submitted at a base price of 730 euros (844 US dollars) per tonne delivered (equivalent to about 715 euros per tonne from the factory) from one supplier and 720 euros per tonne delivered (about 705 euros per tonne from the factory) from another.
It was heard that the third plant offers HRC at a price of 700 euros per ton, which corresponds to recent sales. However, one of the sources told Fastmarkets that the manufacturer withdrew its offers on Monday.
According to Fastmarkets, in the Benelux region, one local factory also offered HRC at a price of 700 euros per ton in stock.
Buyers in the region reported achievable prices of 700-710 euros per ton at the manufacturing plant, but steel Service Centers (SSC) indicated that there were problems with transferring higher costs to end users.
"Our clients need[the HRC price to be]650-660 euros[per tonne ex-works]. This is based on offers to sell[HR]sheets from people who have cheap materials[in stock that]they are currently selling, a source at a service center in the region told Fastmarkets.
"The problem right now is that my clients are telling me that they can't buy a new coil at current market prices," the source added.
A source at a trading company in the region said: "The uncertainty about energy has paralyzed everyone. The movements are so abrupt; all you can do is watch and see how the dust settles."
A second source at the trading company said that the situation in the Middle East, which has developed after the attacks by the United States and Israel on Iran and their widespread reaction, has led to the fact that "speculation seems to be more prevalent in trade than demand at the moment."
Meanwhile, in the secondary market in Germany, it is rumored that a 4 mm thick sheet is changing hands at a price of 740-750 euros per ton without VAT, and new offers are coming at a price of 800 euros per ton without VAT, reflecting higher raw material costs. However, newer models have not yet been accepted by the market.
.The daily price index for Fastmarkets hot-rolled steel coils in the domestic market, exw in Northern Europe, calculated on March 10, amounted to 704.38 euros