Romania's flat steel spot market has weakened further this week, with prices continuing to move lower as demand remains very slow. The summer holiday period has further reduced business activity, while persistent liquidity constraints continue to limit purchasing and keep buyers focused on immediate needs. At the same time, aggressive pricing from some larger traders has intensified competition and added further pressure on workable levels, with market participants expecting the weak conditions to persist through the end of August. Against this backdrop, Liberty Galati, Romania's sole integrated steel producer, has again become the focus of market interest, with new developments emerging around the search for a potential buyer following two unsuccessful auctions.
According to local reports, Liberty Galati is now expected to move towards direct negotiations with interested investors. The plant was initially offered at around €709 million, before the price was reduced to €444 million in the second auction, which also ended without a buyer. Romanian businessman Dorinel Umbrarescu, Ukraine's Metinvest and India's Jindal are reported to remain among the interested parties, while discussions are currently heard at around €350 million. However, local sources state that formal negotiations cannot begin while Romania remains under an interim government, as the state is one of Liberty Galati's main creditors and key decisions require a fully empowered government. Meanwhile, tolling agreements with Glencore and Kayseri Metal Center are expected to support some rolling activity, although no significant recovery in production has been seen so far.
In the local spot market, hot rolled sheet prices have declined to around €780-790/mt ex-warehouse, compared to €790-815/mt ex-warehouse last week. Some larger traders are heard to be offering material at around €750/mt ex-warehouse, increasing the pressure on smaller and medium-sized sellers, which are granting discounts of around 5-8 percent to serious buyers depending on tonnage and payment terms. However, lower prices have so far done little to stimulate sales.
Cold rolled sheet prices have also moved lower, to around €880-890/mt ex-warehouse, from €890-900/mt ex-warehouse last week, with similar flexibility available for firm inquiries.
On the import side, Romanian buyers continue to show very limited interest in fresh purchases, with almost no meaningful bookings heard regardless of origin. Offers have softened further this week, particularly from Ukraine, where hot rolled sheet prices have declined to around €790-800/mt CPT Romania from €800-820/mt last week, while cold rolled sheet offers have decreased to €880-890/mt CPT from €890-910/mt CPT. Turkish HRC offers are currently heard at around $570-580/mt FOB, compared to $570-585/mt FOB last week. With freight to Romania estimated at around €25-30/mt, indicative delivered levels from Turkey are at approximately €520-530/mt CFR Romania. However, Romanian buyers are still staying away from Turkish material due to quota limitations and uncertainty over CBAM-related costs. Some renewed interest may emerge in September, depending on quota availability and greater clarity over the additional import costs.
