European coil prices to stabilise mid-year: end users

The European coil price uptrend is seen ending in the second half of the year, various regional coil buyers and end users tell Kallanish.

With European producers restarting blast furnaces in Europe, the current shortages of hot and cold rolled, as well as hot-dipped galvanised coil should ease in H2 and prices may decline or stabilise. Demand for coil should also slow in the coming months as southern European re-rollers are said to have procured enough material until the end of the second quarter, sources observe.

End users are lamenting significantly decreased demand for white goods this year, while the automotive sector is showing some positive production and sales figures. The appliances sector and component makers, together with re-rollers, are suffering lower margins and reduced sales since Q4 2022, coupled with continually rising prices of steel and other raw materials, thereby impacting profitability.

European steelmakers are further increasing their coil offers on the back of a recovery in import prices, as well as some output limitations. ArcelorMittal raised its price indications by a further €20/tonne ($21) last week, lifting HRC offers to €870/t ex-works for all European regions and HDG to €990/t ex-works base. Tata Steel invoked force majeure at its Ijmuiden mill at the end of February, adding supply tension in the market (see Kallanish passim).

Natalia Capra France