Buyers were expecting to see how negotiations on long-term contracts between automotive original equipment manufacturers (OEMs) and steelmakers would develop for the first half and full year of 2025.
The outcome of the negotiations is expected to set the tone for trading in the spot market, according to industry sources.
Buyers were hoping to achieve a discount of around €100 per tonne for first-half and full-year 2025 contracts, while mills are targeting a more minor reduction of €50 per tonne or a price rollover in some cases, Fastmarkets understands.
Although one producer source told Fastmarkets that they had already managed to sign some contracts with the automotive OEMs and the achieved price was described to be “just a two-digit decrease,” negotiations were still continuing.
According to industry sources, the negotiations would be fully completed in January.
January is also expected to bring more clarity regarding imported volumes of HRC, most of which will be customs cleared in the first month of 2025, a buyer source told Fastmarkets. Thus, there would be more transparency in the market on HRC availability.
Import offers of HRC to Europe remained uncompetitive, which was expected to support domestic prices, the buyer added.
Meanwhile, mills in Northern Europe continued to offer HRC for delivery in the first quarter of 2025 at €600-620 ($633-654) per tonne ex-works, according to industry sources.
Mills were not willing to give significant discounts on their spot market offers due to the continuing negotiations with the automotive OEMs, Fastmarkets understands.
Buyers’ estimations of the workable market level were lower, at €550-570 per tonne ex-works.
However, trading remained limited, and no major deals were heard in the market.
Fastmarkets calculated its daily steel hot-rolled coil index, domestic, exw Northern Europe at €564.17 per tonne on Friday, up by €4.17 per tonne from €560.00 per tonne on Thursday.
The index was also up by €4.17 per tonne week on week and up by €5.42 per tonne month on month.
In Southern Europe, Fastmarkets calculated its daily steel hot-rolled coil index, domestic, exw Italy at €560.42 per tonne on Friday, down by €2.08 per tonne from €562.50 per tonne on Thursday.
The index was up by €2.09 per tonne week on week and up by €8.75 per tonne month on month.
Trading in Italy was also slow on Friday, Fastmarkets understands.
One Italian supplier continued to offer HRC for the first quarter of next year at €600 per tonne delivered, which would net back to €590 per tonne ex-works, Fastmarkets understands.
But a second supplier was heard to be accepting bookings at €550 per tonne ex-works.
Buyer estimations of the workable market level were at €550-570 per tonne ex-works.
No fresh import offers were heard in the market.
