The spot market for flat rolled products in Romania has lost some momentum this week, as weak buying activity and buyer resistance to recently tested higher levels are making it increasingly difficult for traders to hold their quotes.
Sentiment was also influenced by reports of a sell-off at aggressive prices from a major trader, which strengthened buyers' negotiating positions and brought discounts back to the list of discussed options. At the same time, ongoing liquidity issues continue to prompt some suppliers to prioritize cash flows, and expectations for August remain subdued amid a seasonal slowdown and limited sales prospects.
Prices for hot-rolled sheet from the warehouse are currently estimated at 790-815 euros per ton against 800-830 euros per ton a week earlier. At the same time, a large trader's deal was reported for about 750 euros per ton from a warehouse, which is considered significantly lower than the prevailing market range and therefore does not fully reflect the overall level of quotations. However, this deal put additional pressure on the negotiations and contributed to lower price expectations.
Prices for cold-rolled sheet also decreased to 890-900 euros per ton from the warehouse compared to 900-925 euros per ton in the previous week. In addition, traders are again showing great flexibility in dealing with serious buyers, offering discounts of about 5-8%, depending on the order volume, payment terms and the seller's need for liquidity.
Meanwhile, the prospects for the sole producer, Liberty Galai, remain uncertain, despite processing agreements concluded this week with British and Turkish companies. While these arrangements may provide temporary support and allow for the resumption of limited production, the Romanian authorities have also confirmed that salary payments through the State guarantee fund will not last beyond the initial six-month period. Thus, the processing agreements are considered mainly as a short-term measure, since the expected income is unlikely to cover the broader financial needs of the plant, and efforts to attract a new investor have not yet yielded concrete results.
On the other hand, the import market remains calm, as Romanian buyers have enough stocks, and they are not in a hurry to make new purchases after the recent increase in import prices. Prices for Ukrainian hot-rolled sheet in Romania increased to 800-820 euros per ton from 760-770 euros per ton last week, while offers for cold-rolled sheet from Ukraine increased to 890-910 euros per ton from 850-860 euros per ton earlier. Prices for Serbian hot-rolled