Multiple Italian re-rollers, along with tube manufacturers in various European nations, are enacting price increases of €50/tonne ($52), industry sources tell Kallanis
The increase is effective immediately and is considered essential for margin recovery, given the unsustainable nature of current prices versus costs. Production costs for re-rollers are on the rise, influenced by escalating prices of hot rolled coil in Europe, coupled with additional import restrictions stemming from the EU’s safeguard measure review initiated this week.
Protectionist measures are affecting major coil processors and tubemakers, who procure substantial coil tonnages each year from third countries to meet their extensive processing requirements.
A significant number of re-rollers in Europe are expected to carry out extended production halts to align supply with demand during the holiday period.
Multiple sources confirm to Kallanish that production will cease for approximately three to four weeks. Given the present low inventory levels, the production halts are likely to result in diminished product availability, with shortages expected for specific grades.
The market is quiet after buyers finalised their purchases for December. January contract values, however, are expected to rise in accordance with the price hikes.
European HRC prices have increased in contracts to an average of €560-570/t base delivered, while derivative prices in Italy have shown stability, with tube discounts flattening on-month at 47-48 points.
ArcelorMittal is increasing coil prices by €20/t in Europe for delivery in the new year. Lead times at the steelmaker’s plants in Europe are now extended to February and March. For the few February allocations left of HRC, new asking prices are at €630/t base delivered. Prices for hot-dipped galvanised coil are also being pushed up, to €750/t base delivered.
The European Commission’s investigation will determine whether the EU safeguard measure on steel imports needs amending to reflect recent market developments, following a request by 13 Member States. The investigation will be concluded by 31 March 2025. Any resulting decision may become applicable as of the start of a new quarter – 1 April 2025 – including with a new TRQ volume.
Natalia Capra France
