Mills have issued the first signals to buyers regarding the upcoming talks for long-term coil supply contracts for 2027.
The prices will certainly be higher than they were for the 2026 contracts, with sources suggesting a three figure rise.
The current price of hot-rolled coil from northwestern European integrated mills is around €750/tonne ex-works ($842/t). This is substantially above that of October 2025, when it had had just climbed above €600/t and did not reach more than €620/t in transactions until the end of the year.
Little surprise, mills find that “three-digit improvements from 2026 annual contract levels are appropriate,” one mill manager reveals to Kallanish.
“Most annual contracts this year have not reflected the anticipated price hikes in 2026. They must now make up for that, and also reflect the increase of input costs,” he adds.
Similar signals have been received by various players on the buying end. “You hear €100/t more from all sides,” one observer says.
Another source at a re-roller says he hears indications in the mid-two-digit range. But even a €100/t hike would still not fully reflect the surge on the spot market, especially since many anticipate a gentle continued upward trend going forward
On the spot prices, a manger of a processor company finds that “mills have an enormous tailwind and are very confident.”
He is sure that “prices will definitely not fall back”.
In fact, the observer notes that +€100 applies only to the first half year. “For the second half, some have mentioned a four-digit price,” he says.
This week will see the Euroblech trade fair in Hanover, Germany, take place. According to the re-roller’s manager, Euroblech “takes place too early for concrete talks.” Against that, a buyer of an automotive supplier company confirms that “we will have our first talks [at the fair] on Wednesday.”
