Trading activity in the European HRC steel market remains low due to high inventories and uncertainty.
On Monday, June 15, the European hot-rolled steel coil market experienced a decline, mainly due to the uncertainty caused by the upcoming introduction of a new protective regime. There is some demand only from buyers who need to restock before the start of the summer vacation period, while stocks are mostly high, Fastmarkets sources said.
The market is being affected by "uncertainty regarding the mechanism for regulating carbon dioxide emissions (CBAM), new quotas, increased energy costs due to[the conflict between Iran and the United States]; and we are approaching the summer holidays, so a significant improvement is unlikely to occur before the summer," said one trader
In Northern Europe, offers for the supply of materials scheduled for the end of July-September were presented in the range of 710-720 euros (821.48–833.05 US dollars) per ton from the plant. Meanwhile, the acceptable level was estimated at 680-700 euros per ton after production.
The daily price index for Fastmarkets hot-rolled steel in the domestic market, exw in Northern Europe, as of June 15 was 692.50 euros ($801.24) per ton, which is 7.29 euros higher than 685.21 euros per ton on June 12.
The indicator increased slightly by 0.50 euros per ton week-on-week and by 8.75 euros per ton on a monthly basis.
In Italy, the offers ranged from 685-695 euros per ton from the factory, and the selling prices ranged from 680-685 euros per ton from the factory. For large-tonnage cargoes, the acceptable level was indicated at 675 euros per ton from the manufacturer.
"There was some activity because some buyers wanted to restock before the start of the summer holidays — in Southern Europe they usually start earlier than in Northern Europe," said another trader. "People want to have some reserves for the future, because prices may rise. Factories raise prices."
The daily price index for Fastmarkets hot-rolled steel in the domestic market, exw in Italy, as of June 15 was 684.50 euros per ton, which is 3.00 euros lower compared to 687.50 euros per ton on June 12.
The index rose by 3.67 euros per tonne week-on-week and decreased by 0.33 euros per tonne on a monthly basis.
Author: Vlada Novokreschenova
Fastmarkets.com