This week, Romanian flat steel spot traders have lowered their prices due to ongoing weak demand and falling flat steel prices across Europe. In addition, with the new EU import quota period now started, local buyers have remained inactive on the import side, preferring to wait for customs clearance before making further purchases. Meanwhile, Romania’s sole flat steel producer, Liberty Galati, faces bureaucratic challenges. The company has about 43,000 tons of slabs and finished products ready, but is undergoing debt restructuring to avoid insolvency. While creditors and the state have approved the debt restructuring plan, the National Agency for Fiscal Administration (ANAF) has not. If ANAF does not change its decision by July 5, Liberty Galati may be declared bankrupt next week, risking suspension or closure.
Over the past week, while no official offers have been heard from the producer this week, spot prices for hot rolled sheets (HRS) and cold rolled sheets (CRC) in the domestic market have decreased by €10-15/mt and €5/mt to €700-720/mt ex-warehouse and €820-835/mt ex-warehouse, respectively.
In the import segment, Romanian buyers who bought several quantities from Ukraine a few weeks ago have been quiet ahead of the quota period, but lately have been showing interest in Turkish goods. However, there have been no fresh deals disclosed. Meanwhile, offers from Ukraine for HRS and CRS have remained stable at €610-620/mt CPT and €700-710/mt CPT, respectively. In contrast, Turkish HRC offers have continued to decline from the previous week. Current FOB prices from Turkey are at around $510-525/mt with freight costs estimated at approximately €25/mt, and so the delivered price to Romania stands at about €460-470/mt CFR, down from last week’s €480-485/mt CFR.