European mills push for substantially higher HRC offers for Q1 2025 despite subdued demand

European steel hot-rolled coil prices were stable to slightly up in the latest spot sales, but mills are aiming for substantially higher values for the first quarter of next year, sources told Fastmarkets on Tuesday October 29.

Despite subdued consumption, all major European suppliers were looking to achieve higher prices for January and February, Fastmarkets heard.

“Imports are expensive and too risky to book, considering anti-dumping probes and safeguards. If mills [in Europe] adjust production volumes in November and December, they might get a chance to increase [HRC] prices,” a buyer in Germany said.

Northern European producers were offering January-delivery coil at €600-620 ($648-670) per tonne ex-works and even at €640 per tonne ex-works in some cases, sources said. But these prices have not been accepted in deals so far.

Producers continued to offer discounts only for HRC with delivery in the fourth quarter of 2024, Fastmarkets heard. Notably, transactions for December-delivery HRC were reported at €550-560 per tonne ex-works, while offers for such material were around €570-580 per tonne ex-works.

Fastmarkets calculated its daily steel HRC index, domestic, exw Northern Europe at €555.42 per tonne on Tuesday, up by €5.13 per tonne from €550.29 per tonne on Monday.

The index was down by €1.67 per tonne week on week, but up by €10.21 per tonne month on month.

Sources said that European suppliers were also trying to push spot prices higher ahead of negotiations of long-term contracts with end users for next year.

“Mills are trying to strengthen their position… ahead of signing long-term contracts with automakers,” a buyer source said.

Original equipment manufacturers (OEMs) were asking for discounts of up to €200 per tonne, which is “unacceptable” from suppliers’ point of view.

Long-term contracts with OEMs in the automotive industry for the second half of 2024 were closed at €730-750 per tonne – and even at €700 per tonne in some cases, compared with €800 per tonne in the first half of the year.

In Southern Europe, Fastmarkets calculated its daily steel HRC index, domestic, exw Italy at €548.63 per tonne on Tuesday, up by €1.63 per tonne from €547.00 per tonne on Monday.

The Italian index was up by €0.50 per tonne week on week and up by €6.96 per tonne month on month.

Suppliers in Italy were offering December-delivery HRC at €570-580 per tonne delivered, which would net back to €560-570 per tonne ex-works, Fastmarkets heard.

But for such material, buyer estimates for the tradable market level were still reported at no higher than €540-550 per tonne ex-works.

“Negotiations [for December HRC sales] are still underway; mills’ asking prices are too high,” a buyer in Italy said.

Import prices, meanwhile, remain uncompetitive and no fresh business was completed on Tuesday, sources told Fastmarkets.

In Italy, November-shipment HRC from Turkey was on offer at €580-590 per tonne CFR to Italy, including the anti-dumping duty, while Asian material was on offer at €550-570 per tonne CFR.

Last week, the European Commission started registering all HRC imports from Egypt, India, Japan and Vietnam, paving the way for the potential retroactive application of anti-dumping duties, Fastmarkets reported.

Published by: Julia Bolotova