Following the previous rises in Romanian flat steel spot traders’ prices brought on by increases in the EU flat steel markets, the Romanian flat spot market has moved sideways this week. Although EU flat prices continue to rise, market participants predict that this stability in Romania could last for some time since local demand is still weak and cannot support much higher levels. In the meantime, despite domestic trade being limited, Romanian flat steel traders who needed stocks since the sole domestic producer is not expected to return for some time have lately chosen Ukrainian suppliers and purchased small quantities of hot rolled sheets.
According to reports, a Ukrainian supplier has recently sold some small tonnages of hot rolled sheet to Romania at €650-660/mt DAP. However, offers from the Ukrainian supplier have increased by €10/mt for both hot rolled sheet and cold rolled sheet from last week to €660-670/mt DAP and €750-760/mt DAP, respectively.
Turkey, another preferred supplier, has not done any deals, but this week's hot rolled coil offers have dropped with FOB pricing of about $540-555/mt and freight costs of about €25/mt. This means that the price to Romania is now at around €525-540/mt CFR instead of €540-550/mt CFR.
Meanwhile, in the Romanian flat steel spot market, the majority of traders have maintained their offers for hot rolled sheets and cold rolled sheets unchanged from last week, at €720-745/mt ex-warehouse and €840-865/mt ex-warehouse, respectively.
On the other hand, Romania's sole flat steel producer, which announced this week that it has begun a preventative process to secure its future, is not expected to be active in the market for some time.
