Uncertainty over the future price direction, economy, and political instability in Europe and globally continued to keep buyers on the sidelines.
“Mills are certain they can get higher prices [for HRC] because of reduced imports. But this [import shortage] alone is not enough – the core market fundamentals have not changed and demand is still slow,” a buyer in the Benelux area said.
First-tier mills in the region were largely sold out for February and even March-delivery HRC, according to sources. Although March lead times were still available at some suppliers.
“Before Christmas, a lot of customers bought [HRC tonnages] to secure lower prices,” a second buyer told Fastmarkets. “Some buyers are inquiring about April delivery already, but mills are holding back offers for the second quarter – [there is] too much uncertainty.”
Achievable prices were estimated by sellers at €580-590 ($598-608) per tonne ex-works and at €550-580 per tonne ex-works by buyers.
But producer sources confirmed that the lower end was no longer available. At the same time, offers at €610-630 per tonne ex-works, voiced by a few suppliers at the end of December, had not yet been sealed in deals.
“We don’t get orders at these levels [€610-630 per tonne],” a mill source said.
Italian coil with March delivery was offered to Germany at €610-630 per tonne delivered. A source pointed out that end-of-February delivery was still possible from a supplier, however.
Sources reported some minor-tonnage transactions for such material at no higher than €580-600 per tonne delivered during the week.
A reroller in Northern Europe was offering HRC with March lead times at €580 per tonne ex-works.
Fastmarkets calculated its daily steel HRC index domestic, exw Northern Europe at €565.42 per tonne on Friday, down marginally by €0.83 per tonne from €566.25 per tonne the previous day.
The index was up by €0.42 per tonne week on week and by €4.59 per tonne month on month.
Long-term contracts for the first half and full year of 2025 were sealed with a €60-80-per-tonne discount compared with 2024 levels, sources said, which was “a good outcome for the mills,” a trading source said.
“When negotiations started, automotive [original equipment manufacturers] were asking for a triple-digit discount, so mills can be happy with what they got,” a distributor in Norther Europe told Fastmarkets.
Some contracts for the first half of 2025 were heard done at €650-670 per tonne, compared with €730-750 per tonne from the second half of 2024, sources said.
Meanwhile, in Southern Europe, Fastmarkets calculated its daily steel HRC index domestic, exw Italy at €562.50 per tonne on Friday, unchanged from a day earlier.
The index was flat week on week, but up by €3.50 per tonne month on month.
Local integrated mills were offering HRC for delivery in the first quarter at €580-620 per tonne delivered, which nets back to €570-610 per tonne ex-works.
Buyer estimations of achievable levels were reported at €550-570 per tonne ex-works, depending on the supplier.
Sources expect more clarity on the market situation in the coming weeks, when more market participants come back from holidays.
The market for imported coil has been quiet in recent weeks due to numerous trade restrictions in place, long lead times and uncompetitive prices.
Offers of imported coil were limited in the week to Friday. Turkey was heard offering HRC to Italy at €560-570 per tonne CFR, including the anti-dumping duty.
Indian-origin coil was on offer to Italy at €540-550 per tonne CFR, industry sources told Fastmarkets.
An offer from Indonesia was reported at €550 per tonne CFR.
Most suppliers were offering March shipment.
Buyers estimated workable levels for imports at no higher than €520-540 per tonne CFR.