Prices for hot-rolled steel coils (HRC) in the domestic market of Northern Europe decreased slightly under the pressure of weak demand from the refining sector and with sufficient inventory levels. In Italy, prices generally remained stable, and imports to the region increased after a number of recent deals, sources said on September 23.
According to market participants, weak demand for rental products in Northern Europe limits price increases, as buyers are in no hurry to restore stocks. At the same time, manufacturers maintain a strict pricing policy, taking advantage of the lack of competition from imports.
Market expectations on Wednesday were in the range of 730-760 euros per ton on ex-works terms, while factory offers were estimated at 750-760 euros per ton. Higher quotes, reaching 780-790 euros per ton of ex-works, were considered unrealistic so far, Fastmarkets sources said.
One distributor noted that demand continues to weaken, while manufacturers are trying to raise prices, citing high energy costs in Europe.
As a result, the Fastmarkets daily index for the domestic hot-rolled roll market in Northern Europe, calculated on September 23, amounted to 740 euros per ton. This is 3.75 euros lower than on September 22, when the figure was 743.75 euros per ton.
During the week, the index decreased by 5 euros per ton, but during the month it increased by 17.92 euros per ton.
Meanwhile, a source among suppliers said that service centers in Germany and Italy are ready to purchase only limited volumes at prices no higher than 750 euros per ton, which corresponds to about 730-740 euros per ton on ex-works terms.
"There is no desire to purchase significant volumes at such prices — there are still quite few reserves, and it is difficult to keep prices for rolled products at the target level of 850 euros per ton CFR and above," the source said.
According to him, some manufacturers in Northern Europe have adjusted the prices for rolled products, bringing them closer to realistic HRC levels, which correspond to the Italian market, where the quotations for the sheet were higher.
Despite the weak activity in the secondary market, prices for HRC in Italy, according to sources, remained at around 730-740 euros per ton of ex-works. One of the distributors said that competition remains high due to low demand, which puts pressure on margins.
The Fastmarkets daily index for the domestic hot-rolled roll market in Italy, calculated on September 23, amounted to 735 euros per ton and remained unchanged from the previous day. During the week, the indicator increased by 6.67 euros per ton, and during the month — by 22.50 euros per ton.
In Central Europe, manufacturers face difficulties in production planning due to the longer delivery times of steel slabs: their delivery from abroad takes