Blechexpo: European players are in a frenzy discussing the scale of the rate hike
The European Commission's proposal to introduce new protective measures against steel imports is prompting domestic factories to raise prices above 600 euros per ton ($696), despite continued market weakness.
Most observers at the Blechexpo exhibition in Stuttgart on Wednesday said that the precautionary measures and subsequent attempts to raise prices were not really stimulating real demand. However, they have recognized the need for factories to raise prices and want to believe that an uptrend is possible. At least, "a slight upward correction in prices in the fourth quarter seems likely now that the market is gaining calm and confidence," one Dutch manager told Callanish during the event.
The German manager cited the figure, stating that the plants will not produce more hot-rolled coils in the fourth quarter at a price below 600 euros per ton from the plant. Last week, some market participants suggested that some residual volumes were still available at a lower price, but now this option seems to have been exhausted. He believes that 600 euros is a psychological bar that should not be underestimated.
The Dutch buyer agreed with him, noting that "mills will actually try to get much more than 600 euros."
One of the mill group managers also mentioned the exact figure characterizing his company, which we expect to receive in the first quarter of 2026. "We left the market and didn't make any offers for a week," he said. "We are currently requesting 640-650 euros per ton of products, depending on the region and transportation costs."
Although this is similar to the proposals received from another group of plants, the German manager does not see coordinated actions by the plants, but rather believes that prices will rise were inevitable. "Before Blechexpo, everyone assumed that the exhibition would confirm efforts to raise prices," he concluded.
Christian Kel Germany
Kallanish.com