The major integrated coil mills in northwestern Europe are attempting higher prices for deliveries as of October, market participants tell Kallanish.
Some mills are now targeting offers of €660/tonne ($721) ex-works for hot rolled coil. The price point appears fair, as it means a customarily cautious €30 hike over the €630/t that mills have been able to achieve at best in summer so far.
The new offer price would be valid immediately, as orders now would mean rolling and delivery in October, according to a service centre manager.
Mill sources had told Kallanish in June that any price increase attempt in summer would be hopeless, but that a hike will be necessary come September. The new offers have come sooner than expected, probably to cover all deliveries in the fourth quarter.
A manager at a German cold-roller company, who only buys on long-term contracts, has heard of the offer increase and finds it reasonable. “Of course, going for €100 more or so is absolutely out of the question. So, mills are testing the willingness of buyers modestly,” he notes. He believes mills are banking on lower pressure from imports after the latest safeguard adjustments and EU HRC anti-dumping duty probe initiation.
For some two months, HRC prices from major mills were locked at around €620/t, rarely more. Lower transactions were heard quite often, which appears logical, as lulled activity normally forces sellers to make further price concessions. The value of €615/t was heard frequently over recent weeks. A low was reported from the Netherlands at €605/t, but sources doubt this is a representative sustained value.
Christian Koehl Germany
