European HRC prices increase on continuing bullish sentiment at producers

Prices for European steel hot-rolled coil increased on Friday January 24 amid continuing bullish sentiment at producers, industry sources told Fastmarkets.

Fastmarkets calculated its daily steel hot-rolled coil index domestic, exw Northern Europe at €586.25 ($610.27) per tonne on Friday, up by €5.00 per tonne from €581.25 per tonne on Thursday January 23.

The index was up by €12.50 per tonne week on week and by €21.25 per tonne month on month.

“Prices [in the region] are increasing. Mills are sold out for the first quarter of the year and only small volumes could be booked at €580-590 per tonne ex-works,” a distributor source based in Germany told Fastmarkets.

Mills in Northern Europe were heard offering HRC for the second quarter of the year at €620-630 per tonne ex-works or delivered, depending on the mill. In some cases, the material was offered even at €640-650 per tonne, industry sources told Fastmarkets.

Some small volumes were traded on Friday at €590 per tonne ex-works, Fastmarkets understands.

Buyers’ estimations for the workable market level were mainly at €580-590 per tonne ex-works.

At the same time, Fastmarkets calculated its corresponding daily steel hot-rolled coil index domestic, exw Italy at €580 per tonne on Friday, up by €2.50 per tonne from €577.50 per tonne on Thursday.

The index was up by €10.00 per tonne week on week and by €17.50 per tonne month on month.

The latest HRC offers heard in the Italian market were at €610-620 per tonne delivered, which would net back to €600-610 per tonne ex-works, Fastmarkets understands.

But no major deals were heard in the market.

Fastmarkets’ sources estimated the workable market level at €570-590 per tonne ex-works.

Italy’s industry seeks help with high energy prices
The Italian association Confindustria — which represents manufacturing and service companies in the nation, including steel producers — distributed an appeal to the parliament and the government on Thursday, asking for support with high energy prices.

The association said that the high energy costs were making the domestic industry system more unsustainable, and local companies were at risk for collapse.

According to the association, the current energy prices in Italy were 38% higher than those in Germany and 72% higher compared with those in Spain.

The association referred specifically to the high costs of energy produced from renewable sources and energy produced from natural gas. According to the association, legislative amendments were necessary to provide an allocation of energy from renewable sources but decoupled from the total price of the energy mix in Italy.

According to data from Gestore dei Mercati Energetici (GME), a state-owned company managing the electricity and natural gas markets in Italy, the electricity price in Italy’s energy exchange reached €177.94 per MWh on January 24, 2025, compared with €128 per MWh on the same day a year earlier.

Published by: Darina Kahramanova