European coil price rally continues on 13-year high

European coils prices remained elevated at 13-year highs as further price hikes are anticipated, sources told S&P Global Platts Jan. 14.

One Benelux buyer said due to delivery delays at European mills caused by supply shortage, he had started to search for material at steel service centers, hoping for a quicker delivery.

“But also, SSC said they don’t have material for Q1 and Q2 as they suffer from the same problem that mills are late with orders to them,” the buyer said.

An Italian reroller said that delivery times would be 16 weeks now, unlike the usual six weeks.

“There is no material in the market, in our business this is a new situation,” said the reroller.

With import prices on par with European domestic prices and European lead times as long as import shipping times, Europe is finding itself in a – albeit temporary – situation where material is hard to come by.

Another Benelux stockholder believed that more material will come on the market before the end of Q1 which could stabilize the continuing price rally.

For now, however, the stockholder said he heard ArcelorMittal will be upping offers by Eur20/mt from its current Eur730/mt offer across Europe soon.

Sources put the spot market value at Eur700/mt EXW Ruhr for HRC, with quarterly contracts discussed at Eur730/mt EXW Ruhr.

The daily Platts HRC assessment for Northern Europe remained stable Jan. 14 at Eur700/mt EXW Ruhr. The Southern European assessment moved up Eur5/mt on day to Eur705/mt EXW Italy, with a deal heard at Eur730/mt base delivered.

The cold-rolled market, which is seeing an even tighter supply shortage than HRC was reported at Eur800/mt EXW Ruhr, with a deal heard at Eur820/mt delivered.

— Laura Varriale