The domestic flat steel prices in Romania have continued falling this week mainly due to the low end-user demand and high stocks in the market. As a result, retail market players have reduced their purchases while trying to minimize existing stock levels, which has naturally affected the price policy of the local producer. For the same reason, Romania’s interest in imports has been limited while the continuing downturn in the flats markets of the EU and Turkey has been adding pressure and uncertainty. The negative sentiment in the scrap market, both locally and in the region, has been another significant factor, affecting the flat steel market situation and mood in Romania.
Romanian flat steel prices have continued to fall, with buyers expecting more drops and so they have been keeping new bookings to a minimum, while the aggressive price changes in the scrap market and local economic concerns are still keeping end-use demand sluggish.
“Buyers are aware that costs will fall, but the trend of the market and the global economy causes everyone to focus on their own priorities. However, the Romanian market is unique in that it may alter at any time, and so we expect a rise in demand to offset these price declines,” a seller told SteelOrbis.
In the local market in Romania, domestic origin of hot rolled coil (HRC) for July production is available at €770-775/mt ex-works, down from €820-825/mt ex-works last week. In the retail market, traders’ prices for hot rolled sheets (HRS) decreased by €25/mt over the past week to €900-1,000/mt ex-warehouse.
Considering Romanian flat stocks are plentiful and that there is no imminent demand for imports, there are few firm import offerings. Meanwhile, some Romania-based sellers have attempted to activate exports in order to reduce their stock levels. According to sources, certain traders have made export offers for HRS at €930/mt FOB. In the import plate segment, some offers have been reported from Bulgaria at €1,230/mt and from Italy at about €1,340/mt, both on the delivered basis.
The domestic prices for cold rolled coil (CRC) in Romania decreased by only €10/mt over the past week to €890-895/mt ex-works for July output, while the reasonable levels in the retail market are at €1,070-1,170/mt ex-warehouse. Last week’s lowest prices, reported by the sources at €925-1,025/mt ex-warehouse, were rather an exception and are not widespread, coming from a few sellers aiming to destock aggressively.
“The responsiveness to pricing adjustments is more delayed for CRS or HRS handled at premier service centers and used in many sectors, such as the automobile, home appliance and other industries. As a result, all traders want to keep their prices high, but, with such limited demand, they must lower the feasible price,” traders told SteelOrbis.
In the coated steel segment, the domestic mill’s prices for HDG and PPGI seem to have remained stable over the past week at €1,000-1,005/mt ex-works and €1,450/mt ex-works, respectively.