Romanian flat steel traders have started testing higher prices this week after spending the previous week assessing the impact of the recently announced EU quota measures and the prospect of higher stock replacement costs. Although demand remains slow due to the summer season, some cautious purchases have been concluded, mainly by buyers seeking to cover immediate requirements before prices rise further. Overall activity, however, remains limited, and market participants are still uncertain about how widely the new levels will be accepted and whether they can be sustained, particularly by small and medium-sized suppliers. Continued financial difficulties and liquidity constraints are affecting both buyers and sellers, restricting larger restocking volumes while leaving some suppliers open to negotiation despite their higher quotations.
In the domestic spot market, hot rolled sheet prices are now heard at €800-830/mt ex-warehouse, compared to €780-790/mt ex-warehouse last week. Small and medium-sized traders are generally trying to conclude sales closer to the lower end of the range, while larger stockholders are testing levels of €820-830/mt ex-warehouse. Cold rolled sheet prices have also moved up to €900-925/mt ex-warehouse, from €880-900/mt ex-warehouse in the previous week. Although discounts are no longer widely offered, sources say some flexibility remains available for serious buyers, particularly for firm volumes and favorable payment terms.
On the sole producer’s side, uncertainty surrounding Liberty Galati continues after the previous sale process failed to result in a transaction. Although talks with a potential investor are reportedly at an advanced stage, a deal has yet to be finalized pending decisions from the Romanian authorities. Meanwhile, operations remain largely suspended, around 2,600 employees have reportedly not received their May and June salaries, and some workers have been placed on reduced schedules or temporary leave. As a result, the outlook for the plant and any near-term recovery in domestic production remains highly uncertain.
The import market has remained at a standstill this week, as suppliers and buyers continue to recalculate costs under the new quota framework. While price increases have already started to emerge in other European markets, Romanian import indications have yet to settle, though firmer offers are expected in the coming weeks. Ukrainian HRS and CRS prices have so far remained unchanged at €760-770/mt CPT Romania and €850-860/mt CPT Romania, respectively, while Serbian HRS is still heard at around €885/mt CPT Romania. Turkish HRC indications have declined to €530-550/mt CFR Romania, from €540-560/mt CFR last week, but these levels are currently of limited relevance to Romanian buyers due to the absence of available third-quarter quota. Turkish offers are therefore being monitored rather than actively negotiated, with fresh interest unlikely to emerge before the next quota period.
