The target price set by the leading company in the market of 720 euros per ton (US$829 per ton) of hot-rolled coils appears to be largely accepted at the moment, despite the fact that demand from steel consumers has recovered slightly after the ongoing lull.
"You will no longer receive HRC at European plants at a price below 700 euros per ton," one of the observers tells Callanish. He admits that one rolling mill can get 690 euros per ton, which may still be possible, mainly in the Benelux.
Lower levels may be available from traders with stocks of Asian raw materials purchased earlier at prices of about 500 US dollars per ton, including CBAM fees, based on ddp to the buyer's warehouse.
A source from Northern Europe notes that factories or distributors may have other existing stocks where prices may still be below 720 euros per ton.
One of the sources at the plant confirms this price level in continental Europe and notes that the offers may be higher rather than lower, especially in Scandinavia. He refers to a recent spot deal concluded last week with a major European distributor for delivery in May at a price that is 200 euros per ton higher than in November 2025.
This gap is very large compared to Kallanish's published price range, in which on November 1 the price of HRC was 600 euros per ton, and after a three-month increase it was 105 euros per ton.
In another comparison, one manager notes that the price is currently at its highest level in two years since March 2024, when it dropped from a short-term peak to 720 euros per ton.
No further price increases have been announced, and it may be difficult to confirm if materials will still be available in warehouses. Many sources indicate that stocks in warehouses and manufacturers are quite large, and they have no desire to resort to more than minor replenishment.
"Customers have enough inventory, and they don't see any improvement in their order portfolios," says a customer from Switzerland. While the service center manager from the Netherlands adds that he has reason to believe that "inventory levels remain relatively high compared to historical averages."
Author: Christian Kel Germany
Kallanish.com
