HRC prices in the EU remain mostly fluctuating as participants await clarity on guarantees
European hot-rolled coil prices were mostly stable on April 22, as market participants noted that further clarifications regarding the new EU protective measures would be required before making any significant trade decisions.
"The market will remain the same, calm and with normal demand, until quotas are announced indicating the amount allocated to each country," said one Italian trader, also stressing that some people underestimate the impact of these measures.
Prices for HRC for domestic consumption in Italy were reported to be 700-720 euros per ton from the factory, while market prices were set at 695-700 euros per ton from the factory.
It was reported that in Germany, some service centers with stock leftovers offered materials at a lower price compared to factories that stuck to solid offers.
The service center offers were reported to be 705 euros per ton at the Ruhr plant, while the mill offers were reported to be 720-750 euros per ton at the Ruhr plant. According to reports, the acceptable level for normal production volumes is 700-715 euros per ton at the Ruhr plant, while sources noted that 680-695 euros per ton would be achievable for larger production volumes.
"To be honest, factories in the EU are quite happy with their feet on the table," said one of the service centers in Benelux. "They're collecting orders because no imports are coming in."
A source at the plant in Northern Europe confirmed that the regulatory situation is favorable for sellers, but noted that their attempts to raise prices to 750 euros per ton were unsuccessful, and that further increases are likely to occur in the second half of the year.
Platts' estimate in Northern Europe was 705 euros per tonne excluding production in the Ruhr, down 5 euros from the previous day, and in Southern Europe it was 695 euros per tonne excluding production in Italy, up 5 euros over the same period.
In the import market, uncertainty remained the main topic of discussion.
"If you make a purchase today, it will be cleared in July, and no one knows what it will look like," said the same merchant.
HRC's Algerian proposals for S355 grade material were presented at a price of US$830 per ton compared to Italian prices, excluding CBAM costs, but sources considered this unfeasible in the Italian market.
Turkish export offers were reported to be worth $630-650 per tonne on FOB terms, unchanged from the levels reported last week, but participants said imports from the region would be too risky given the upcoming changes.