The Romanian flat steel spot market has entered September with stable pricing, as buying activity has yet to pick up to the levels anticipated by market participants. Despite earlier expectations for a stronger recovery following the summer slowdown, demand has remained at a slow pace, with most buyers adopting a cautious approach amid ongoing economic difficulties and tight liquidity. As a result, neither hot rolled or cold rolled sheet prices have shown much movement week on week, reflecting the market’s wait-and-see sentiment. Meanwhile, as for the sole local flat steel producer, Liberty Galati has shown no signs of recovery, with no production or sales activity taking place. The outlook remains bleak and with the start of September the company has suspended the majority of its workforce following a decision made by management.
As a result, spot market levels have remained stable compared to last week, with hot rolled sheet (HRS) prices quoted at €700-720/mt ex-warehouse, and cold rolled sheet (CRS) at €825-835/mt ex-warehouse.
Meanwhile, in the import market, despite the upcoming new EU quota period, no fresh deals have been reported from Romanian buyers with non-EU suppliers. However, according to sources, buyers in need of stocks are mostly turning to neighboring Bulgaria, where a local supplier, offering material sourced from suppliers based in different countries, has lowered its offers by €10/mt compared to last week. HRS is now offered at €590-600/mt CPT, and CRS at €680-690/mt CPT for end of September and October shipments. From outside the EU, Turkish mills have kept offers relatively stable at $535-550/mt FOB. Taking into account estimated freight costs of €15-20/mt, delivered prices from Turkey to Romania are now calculated at approximately €475-490/mt CFR for October shipments.
