Market eyes coil increase despite low consumption: EuroBlech

Sources from mills, re-rollers, and service centres anticipate price increases for coil in November, as indicated by their opinions at the EuroBlech event in Hanover last week.

A mill source said he concluded transactions at the event and anticipates that prices will rise by approximately €30-40/tonne ($32.41-43.21/t) in November.

While the EU is contemplating the implementation of more stringent safeguard tariffs to support European steelmakers amid alleged Asian-origin dumping, a major steelmaker started to ask for a delivered rate of €600-620/t base for hot rolled coil at the tradeshow.

Additionally, potential production reductions are anticipated in the opening months of the new year, but no official announcements have been made.

Several buyers report the coil consumption recovery has not yet materialised in Europe. Kallanish is told by re-rollers and service centres in Italy they are increasing prices of tubes and sheets.

However, the market remains competitive and companies are willing to compromise on prices in order to avoid losing orders, given the prolonged low sales volumes.

Meanwhile, service centres’ customers are attempting to secure material for the first quarter of 2025 and some for the first half of the year at the current low prices for sheet. They anticipate prices of coil and its derivatives will increase.

Hot rolled sheet in Italy and other EU countries such as Germany and France is at approximately €620-630/t ex-works and €660/t for pickled sheet.

Some service centres are reporting losing orders as a result of their attempts to increase their prices by €10-20/t.

The market has been hit particularly hard by the consumption decline, with a large number of companies fighting for volumes both in southern and northern Europe.

Those who should be strict on price increases are frequently willing to offer discounts in order to avoid losing orders.

The HRC price recovery is stuttering due to weak downstream activity and collapsing production volumes in Europe’s automotive sector. However, several sources at EuroBlech stated that increases are “in sight.”

So far, the average price of HRC contracts in Europe remains steady at €550/t base delivered on average, or ex-works depending on client and point of delivery, with southern Europe experiencing marginally lower prices.

Import offers are diminishing, and some import contracts are also being heard at €530-540/t cfr southern Europe.

Meanwhile, the EU has enforced the registration of imports involved in ongoing anti-dumping investigations for cases that have not yet reached the provisional duties stage.

Specifically, imports of hot-rolled steel from Egypt, India, Japan, and Vietnam, as well as tinplate, seamless pipe and tube, and steel track shoes from China are now subject to import registration, among 12 ongoing anti-dumping investigations.

Natalia Capra France