Sources said the increase in trading activity was not due to improved demand or an economic upturn, but due to expectations of longer lead times at some suppliers.
“Some steelmakers will extend their winter break, which will lead to longer lead times [for HRC],” a buyer in the Benelux region of Northern Europe told Fastmarkets.
Offers for HRC with lead times in the first quarter 2025 were heard at €570-600 ($598-630) per tonne ex-works in Northern Europe on Friday, but sources said there was “no information about contracts starting with a ‘6’ so far.”
One supplier in the Benelux region reported hearing of deals for HRC being done at €570-580 per tonne ex-works.
A supplier in Germany, meanwhile, said deals had been done at €560-570 per tonne ex-works.
Buyer estimates of the tradable level in Northern Europe were heard at €550-580 per tonne ex-works on Friday.
“The market mood is rather depressed, especially in Germany, where many companies are announcing staff lay-offs,” a source in Germany said.
And there was said to be fierce downstream competition between steel service centers (SSCs) because of high inventories and cashflow needs.
“There is a battle for orders between SSCs,” a third buyer said.
Fastmarkets calculated its daily steel hot-rolled coil index, domestic, exw Northern Europe, at €562.50 per tonne on December 13, down by €0.63 per tonne from €563.13 per tonne on December 12.
The index was down by €1.67 per tonne week on week but up by €4.17 per tonne month on month.
No major progress was reported regarding the long-term contracts negotiations between steel mills and automakers
Buyers were hoping to achieve a discount for first-half and full-year 2025 contracts, with several original equipment manufacturers (OEMs) reporting a targeted decline of €100-150 per tonne.
Mills were hoping for a “double digit” discount, Fastmarkets understands.
“Mills have to keep in mind that the price gap between spot and contract prices is too wide right now,” a fourth buyer told Fastmarkets.
Contracts for the second half of 2024 were done at €730-750 per tonne, sources said.
“We are in the middle of negotiations with the OEMs. [Contract] prices for HRC will be lower [than] 2024, but not by as much as initially expected,” a mill source said.
“Negotiations [with the automotive sector] are very difficult and might extend into January,” a mill source said.
In Southern Europe, meanwhile, Fastmarkets calculated its daily steel hot-rolled coil index, domestic, exw Italy, at €561.50 per tonne on Friday, down by €0.38 per tonne from €561.88 per tonne on the previous day.
The Italian index was up by €1.08 per tonne week on week and up by €7.50 per tonne month on month.
One local steelmaker in Italy was aiming for €600-640 per tonne delivered (€590-630 per tonne ex-works) for February-March delivery coil, sources said,
depending on the tonnage and client.
One integrated mill in Italy raised its offer prices for first-quarter delivery coil to €570 per tonne ex-works, compared with €550 per tonne ex-works at the start of December,
Buyers, meanwhile estimated the tradable base price for HRC at €570-580 per tonne delivered (€560-570 per tonne ex-works).
The market for imported coil in Europe remained quiet in the week to Friday due persistent trade restrictions, long lead times and uncompetitive prices compared with European suppliers.
“We expect reliance on European material will only increase in the upcoming months,” a buyer in Italy said.
Turkish suppliers were offering HRC at €550 per tonne CFR, duty paid, for tonnages of 10,000 tonnes or more, sources said.
And offers of HRC for February shipment from Southeast Asia to Italy came in at €580-600 per tonne CFR in the seven days to Friday.
