Coil derivatives such as tubes and sheets are finally registering price increases in southern and western Europe, driven by the recent rise in coil prices. However, consumption remains stagnant and trading volumes are still limited.
The market is divided. Upstream producers are optimistic about price increases and trade measures, while downstream demand from end-users and steel processors remains weak, showing no signs of recovery in the coming months.
Despite the uptick in tube and sheet prices, margins remain tight and in some cases negative. The sharp coil price increases announced by producers are a source of concern. One northern European producer has set a target of €700/tonne ($806/t) base delivered for hot rolled coil in the first quarter of 2026, a level widely considered as excessive. Other producers are taking a more moderate stance, quoting around €620-630/t base ex-works for January.
These proposed increases could further discourage buyers. Service centres tell Kallanish they are already delaying coil purchasing decisions. This is particularly true for end-users such as crane manufacturers and steel processors supplying the agricultural sector, who are currently facing a downturn, cutting production, and implementing temporary layoffs.
Some steel processors believe steelmakers lack a clear understanding of the extent of the consumption slowdown in Europe. Key sectors such as agriculture, heavy machinery, and automotive continue to struggle and do not anticipate any improvement in the first half of 2026.
Demand for white goods, however, appears to have stabilised. One company source reports steady sales in 2025 and, for the first time, does not expect further consumption decline in 2026. That does not however mean they foresee any meaningful increases in the first half of next year.
While coil prices are rising, some traders are reported willing to absorb the additional cost of CBAM. A German trader, however, states he cannot do so.
Service centres and re-rollers are receiving large volumes of material previously ordered from Asia, and ports in Italy are reportedly full. Italian sources note a shortage of cold rolled coil, while importing hot-dipped galvanized coil has become too costly. As a result, CRC and HDG prices are rising sharply, with demand now exceeding supply. One buyer reports receiving a quote of over €800/t base delivered in Europe for HDG.
A seller of sheets and strips reports the market is currently oversupplied, as many steel processors expanded capacity following the strong performance of 2021 and 2022 and are now facing reduced consumption levels. An agent adds that he is managing to maintain the same sales volumes as last year.
Natalia Capra France
