The non-core coil is gaining popularity in Europe
Roll-up tape, which is not a primary material, is gaining popularity in Europe, and recent announcements indicate an increase in the production of declassified roll-up materials.
Swedish environmentally friendly steel manufacturer Stegra signed a multi-year contract with thyssenkrupp Materials Services in January to supply future volumes of coils for the pan-European non-primary materials distribution group.
In times of an inert market and low prices, which have been observed for most of 2025, the attractiveness of inexpensive materials for buyers seems to be growing, which minimizes risks as customers who adhere to high standards remain restrained.
"Demand is too low, and I see that more and more people are asking for materials that are not top-notch," says one Benelux trader to Callanishou. "Many people are trying to get even cheaper than the low prices we currently have for high-quality materials." he adds.
Since then, regular prices have been slowly but steadily recovering, and increased delivery times indicate an increase in primary coil orders. But then the import barriers imposed by the Carbon Boundary Regulation Mechanism (CBAM) may mean an advantage for a non-core imported coil.
Another trader notes that the trader's real role as an intermediary is enhanced when trading declassified material. When it comes to primary materials, customers can get an idea of the price per ton through numerous channels, so pricing in this segment is very transparent, he says. "This is not quite the case in the non-prime segment, where good prices and offers largely depend on the network of sellers."
To some extent, such preferences for "non-prime" are observed in the traditional markets of domestic "prime" materials. According to the service center manager, "in fact, it all depends on the purpose[such as]whether it is a visible detail or not. Customers are relatively flexible." He notes that clients, as a rule, "do not ask for 2A materials in advance, but accept them if they are offered."
One of the typical strategies of the plant during periods of low sales is the nominal declassification of category 1A to 2A materials in order to justify a discounted offer. If the current price recovery is supported by a recovery in demand, such supply is likely to disappear.
Author: Christian Kel
Kallanish.com