The European markets for domestic cold rolled coil (CRC) and hot dip galvanized (HDG) steel have shown further upward momentum this week. Tighter supply conditions, combined with a slow but noticeable shift in buyers’ willingness to accept elevated prices, have provided support even as real demand has remained weak.
Specifically, while offers for CRC and HDG from ArcelorMittal have increased to €820-830/mt delivered, for April deliveries, other European mills have been trying to attempt similar moves, though most market sources argue that the latest offers disregard the prevailing market conditions. Thus, in the domestic CRC market, most mills in Italy and northern Europe have been targeting €770-790/mt ex-works, versus €770-780/mt ex-works two weeks ago. However, despite such bullish sentiments, most customers’ bids are still voiced at lower levels of around €740-760/mt ex-works in northern Europe and at around €750-760/mt ex-works in Italy, the same as two weeks ago. At the same time, most mills have been aiming to increase prices to around €800-810/mt for delivery in April, according to sources.
According to several sources, a number of regional producers have recently stepped back from spot sales, a move widely interpreted as a prelude to higher price announcements. This has limited material availability in the open market and strengthened expectations that buyers will need to pay more to secure volumes for second quarter delivery.
“The market is very slow at the moment. Most buyers are asking for CRC, but domestic mills are mainly offering higher grades,” a market insider told SteelOrbis.
“CRC supply has become increasingly import-driven, but with antidumping investigations now covering a large share of volumes from key origins, availability is tightening fast,” another sources said.
In the import segment, offers for CRC have settled at €660-680/mt CFR, depending on the supplier, compared to €620-660/mt CFR two weeks ago. Very few offers have been heard on CFR basis this week, due to AD duty and considering that customers are unwilling to take the risk of purchasing without clarity on CBAM costs. Offers for ex-Thailand CRC are voiced at €675-678/mt CFR, versus €655-660/mt CFR two weeks ago, excluding CBAM costs. Besides, offers for ex-Brazil CRC, without CBAM have settled at around $800/mt CFR, or around €678/mt CFR.
Meanwhile, offers for CRC on DDP basis, including CBAM, have been voiced at €730-760/mt DDP. In particular, offers for ex-South Korea have been voiced at €750/mt DDP, while offers from other suppliers, like those from Brazil and China have been heard at €730-750/mt DDP level.
In the HDG segment, while most mills both in Italy and in the north of Europe have been targeting €800/mt ex-works for April delivery, domestic tradable prices have settled at €750-770/mt ex-works in northern Europe and at €760-780/mt ex-works in Italy, up by €20/mt on the lower end of the range over the past two weeks.
In the import segment, trade has remained limited, with offers for ex-Vietnam HDG Z100 voiced at around $750/mt CFR, which translates to around €640/mt CFR. Meanwhile, offers for ex-UAE HDG have been reported at €695/mt CFR, and at €750/mt DDP, including CBAM.
$1 = €0.85