The bullish sentiment has been supported by restocking of European distributors and long lead times for imported coil.
Platts assessed domestic prices for cold-rolled coil in Northwest Europe at Eur755/mt ex-works Ruhr on Nov. 22, down Eur5/mt on the day, but up Eur10/mt on the week.
Buyers reported tradable values at Eur740-750/mt ex-works Ruhr and indicative offers at Eur750-760/mt ex-works Ruhr.
Platts assessed hot-dipped galvanized coil prices in the region up Eur5/mt on the week at Eur775/mt ex-works Ruhr on Nov. 22.
Market participants estimated tradable values at Eur760-780/mt ex-works Ruhr and offers at Eur780-800/mt ex-works Ruhr.
Real demand remained a main concern, as market participants had a largely negative steel consumption outlook for the start of 2024. Distributors have also been restocking limited volumes trying to avoid building higher inventories in the uncertain market.
But the mills have been firm in their offers due to rising costs. They also have benefited from longer lead times for imported coil.
“The mills say that the traditional spread of Eur100/mt between hot-rolled coil is no longer enough to cover costs,” a service center said.
In addition, European mills have been targeting long-term contract prices for 2024 stable year on year despite spot price drop in 2023. As a result, they are expected to maintain spot offers firm, to have additional leverage in contracts negotiations, sources said.
Platts assessed domestic prices for cold-rolled coil in South Europe up Eur25/mt on the week at Eur760/mt ex-works Italy on Nov. 22.
Offers and tradable values have been heard at Eur760-800/mt delivered Italy.
Platts assessed domestic prices for hot-dipped galvanized coil in the region up Eur25/mt on the week at Eur765/mt ex-works Italy. Offers and tradable values have been heard at Eur780-800/mt delivered Italy.