European hot rolled coil prices are expected to rise this week, supported by reduced availability, a good order book from manufacturers and expected restocking, Fastmarkets said.
Market participants said they expected that higher bid prices will be gradually accepted into transactions due to limited supplies and expected restocking.
“Traders' stock levels are pretty low, [and] some can't wait any longer - they need supplies. [But] manufacturers don't feel the pressure, they have a good order book,” said a European distributor.
Distributors said sales to end users in January and February were "normal" despite some transition difficulties to higher prices.
“We had a normal level of sales [to end users], enough requests to feel comfortable. There is demand, it is not hype, but this is normal, ”a source in the service center told Fastmarkets. "We've had some difficulty raising prices for end users, but they tend to accept [the increase] step by step."
Buyers in the region stated that the acceptable price in Northern Europe is around 800- EUR 820 per tonne EXW.
Sources say a mill in the Benelux plans to move scheduled maintenance of one blast furnace to April rather than wait until summer.
Fastmarkets has calculated that The daily index for domestic hot-rolled products exported from Northern Europe was EUR 818.13/t on Tuesday, up EUR 6.80/t from EUR 811.33/t on March 6.
The latest calculation of the index was up 24.38 euros per tonne per week and 63.13 euros per tonne per month compared to the previous month.
At the same time, the supply situation in Italy was even more tense , sources say.
According to sources, rolls with delivery in May from local suppliers were offered at a price of 820 e EUR per ton with delivery (about 800 euros per ton EXW).
And hot-rolled coils with delivery in July from a plant in southern Italy were offered at a price of 850 euros per ton on EXW terms.
According to buyers, sales volume is 780-800 euros per tonne EXW, depending on the tonnage.
Fastmarkets calculation of the daily index of hot-rolled steel in the domestic market, exw Italy has not changed and amounted to 795.00 euros per tonne on Tuesday.
The last calculation of the index was up by 10.00 euros per tonne per week and by 45.42 euros per tonne per month compared to the previous month.
This week HRC's overseas offerings to Europe have been limited as suppliers are also considering higher prices, to the best of Fastmarkets' knowledge.
Offers from South East Asia to Italy have been heard in the region of $800-820 per tonne CFR for shipping to May, but the real price was estimated by buyers at 780-800 dollars per ton CFR.
“[Foreign suppliers of hot-rolled steel] are trying to raise [hot] prices, but buyers are not agreeing to the increase, and some sellers are finally ready to deal at prices below those offered,” said a trade source in Southern Europe.
According to sources, long delivery times have limited buying interest in imported hot-rolled steel.
In fact, several trade sources have indicated that booking an imported coil only makes sense for the “back-to-back” business, while buying it on shares would be too risky given the high level of market volatility.
