Rolled metal prices in Europe remained mostly stable during the week to May 8, while trading activity remained moderate and most steel companies still have June shipments of rolled metal.

Buyers avoid replenishing stocks, limiting themselves to filling gaps in their product range according to certain specifications. The decrease in apparent demand was also caused by a lack of clarity regarding new import quotas that will be introduced as part of new protective measures that are due to take effect on July 1. Although the general framework is clear, including a 47% reduction in quotas and a doubling of duties to 50%, no decision has been announced on quotas for specific countries.

The lack of clarity led to buyers switching from imports to domestic suppliers, but according to market sources, the foreign material, which had already been cleared for customs clearance in the EU, was available at more competitive prices compared to the domestic roll.

Demand is expected to pick up somewhat as soon as new quotas are announced and buyers can plan their purchases.

The reduced availability of imported coils and the impact of the Carbon Dioxide Emissions Control Mechanism (CBAM) could not prevent a decrease in domestic prices.

"European prices have declined, and CBAM's support, reduced import volumes, and tougher trade measures have not prevented this decline," the distributor said.

While most market sources agreed that the various factories have adjusted their hot rolled coil (HFB) prices based on the lower end of last week's range, they too do not see a significant reduction in procurement prices due to rising transportation costs.

In North-Western Europe, deals and reasonable prices for domestic HRC supplies in June-July were reported at the level of 680-695 euros per ton from the plant. Some official offers remained at a higher level – about 700 euros per ton from the factory.

In Italy, domestic prices for HRC are 570-590 euros per ton from the factory.

The availability of imports remained limited as some exporters refrained from making offers pending a final decision on quotas.

In Southern Europe, the Turkish steel producer offered HRC at a price of 590-600 euros per ton of CIF in Italy, including anti-dumping duties. Buyers have shown limited interest in this material, as Turkish factories have already sold significant volumes to the EU and are likely to exceed quotas, resulting in 50 percent duties for potential importers.

There have been reports of HRC offers from Thailand at a price of 660-670 euros per ton of CIF, and from Algeria at about 670 euros per ton of CIF.

Import of the HRC that has passed