The European hot-rolled coil market remained calm, with suppliers maintaining high offers in the first quarter despite customer resistance, Fastmarkets sources said on Thursday, November 6.
HRC's European suppliers continued to offer materials with January shipments at higher prices, typically above 600 euros ($691) per ton from the factory, hoping to reduce imports due to the Border Carbon Control Mechanism (CBAM) and a new trade regime that will facilitate the use of domestic materials.
In addition, mills was reluctant to resign due to the looming negotiations for long-term contracts with original equipment manufacturers (OEMs) in the automotive industry.
"Mills does not want to weaken its position in negotiations on automotive contracts. In addition, everything is in order with the order portfolio — there is no rush to sell," the steel production service center in Germany reported.
One integrated mill in the Benelux region was counting on 630 euros per ton of finished products for delivery in January-February.
A reseller in the region offered limited quantities of HRC for delivery in January at a price of 600 euros per ton from the factory.
Leading European steel producers expected to receive 650 euros per ton of finished products for delivery in January.
German factories offered an HRC price with delivery in January of about 620 euros per ton from the factory.
Buyers, meanwhile, generally gave lower estimates of achievable prices for the first quarter of 2026, in the range of 590-610 euros per ton from the plant.
"This "optimism" of suppliers is entirely due to the CBAM policy and the new trading regime. Demand is not growing, and this is the main obstacle to price growth," said a German buyer.
"European factories hope to raise[HRC]prices after that, counting on CBAM to stop importing in the first quarter of 2026," said a second buyer.
Suppliers who communicated with Fastmarkets estimated possible prices for January at at least 610-620 euros per ton from the factory.
As a result, the daily price index for Fastmarkets hot-rolled steel for domestic consumption in Northern Europe (exw) on Thursday was 602.67 euros per ton, slightly higher than 600 euros per ton on Wednesday, November 5.
The indicator decreased by 1.08 euros per ton week-on-week, but increased by 27.67 euros per ton month-on-month.
Meanwhile, no significant progress has been reported in negotiations on long-term contracts with automakers for the first half of the year and the whole of 2026.
"The plants are striving for a significant price increase[for long-term contracts for 2026], by more than 100 euros per ton, but buyers are not ready to accept such an increase," they said
