The European local steel hot-rolled coil (HRC) market was moving up slowly, as mills pushed for higher prices in negotiations for the first quarter of 2027, but spot market activity was slow due to limited availability of material for shipment in the remainder of 2026, sources told Fastmarkets on Wednesday November 4.
In Italy, spot market activity was limited as producers were mainly focused on securing annual contracts for the first quarter of 2027, sources said.
A source at a local mill said the mill had already closed its sales for the fourth quarter of 2026, with the latest deals done at around €740 ($828) per tonne ex-works.
The same source added that the mill was aiming to defend €750 per tonne ex-works as the minimum level for Q1 2027 deliveries.
“However, in terms of Q1, the focus today is on the closure of the annual contracts (mostly index-based), only afterwards we expect some spot activity,” the producer source said.
No other price points were received during the day. On Tuesday, a buyer reported an offer at €760 per tonne delivered, which is equivalent to €740-745 per tonne ex-works after deducting delivery costs of €15-20 per tonne.
The same source said they were hearing workable levels mainly in the range of €750-770 per tonne delivered, or around €730-755 per tonne ex-works.
As a result, Fastmarkets’ daily steel hot-rolled coil index domestic, exw Italy was calculated at €745.50 per tonne on Wednesday November 4, down by €0.50 per tonne from €746 per tonne on Tuesday November 3.
The index was up by €3.87 per tonne week on week and by €3 per tonne month on month.
In Northern Europe, sources said mills were targeting higher prices amid strong order books and limited imports. However, buyers were slow in accepting them due to relatively muted demand.
A buyer reported an indication of workable levels at €780 per tonne delivered on Wednesday, equivalent to €760-765 per tonne ex-works after deducting delivery costs of €15-20 per tonne.
The same source said offers were in the range of €780-800 per tonne delivered, or around €760-785 per tonne ex-works.
The buyer added that it had previously booked volumes at lower prices and now needed two to three weeks to assess how much more material it would need for the first quarter of 2027.
No other price points were received during the day, as market activity was slow. Mills were also focusing on long-term contracts in the region, aiming to achieve increases of €100-150 per tonne for the first half of 2027 compared to levels agreed for the second half of 2026, sources said previously.
On Tuesday, two buyers reported an indication within the range of €750-760 per tonne ex-works.
A third buyer reported an indication of tradeable level within the range of €770-780 per tonne ex-works and offers for January-March production within the range of €800-830 per tonne delivered, which is equivalent to €780-815 per tonne ex-works.
The offers were discarded from the index calculation, as levels at the upper end of the range were for February and March production, while material with earlier production time was available.
The active prices from Tuesday were carried over to Wednesday’s index due to the limited fresh input.
As a result, Fastmarkets’ daily steel hot-rolled coil index domestic, exw Northern Europe was calculated at €764 per tonne on Wednesday November 4, up by €2.33 per tonne from €761.67 per tonne on Tuesday November 3.
The index was up by €12.75 per tonne week on week and by €20.67 per tonne month on month.
Vlada Novokreshchenova in Dnipro, Ukraine, contributed to this article.
