Annual coil contracts in Germany are mostly completed
Long-term contracts for the supply of coils in Germany were mainly concluded between manufacturing plants and automakers, as well as between suppliers/distributors as buyers.
The negotiations took longer than in previous years. A year ago, the first deals were completed in early December, and the rest were completed during January. This time, there were no reports of transactions until the end of 2025. "There were various reasons for this," explains a customer from a processing company. "For a long period, we did not have a general agreement signed by factories and equipment manufacturers, besides, the price increase[targeted]did not correspond to the current market."
The first signals for negotiations are traditionally given during the German sheet metal exhibitions in October, Euroblech (Hanover) or Blechexpo (Stuttgart). At Blechexpo last year, representatives of the plant informed Kallanish that they expected a three-digit increase compared to last year's contracts.
.. The situation was exactly the opposite of last year, when buyers initially demanded a discount of 100 euros ($117) from mills compared to last year. As a result, agreements were concluded for 50-70 euros lower. As a result of the latest negotiations, prices were halved, with an increase of 45-60 euros, mainly about 50 euros per ton, sources say.
"The enterprises seem to have met their deadlines well," says a customer from a supplier company. He believes that neither side can be too pleased with the result. The factories had their own reasons for demanding a price increase of 100 euros amid rising costs in a market with unsatisfactory spot prices. Buyers, however, argued that the prospects for demand are unclear.
In the future, negotiations are continuing between groups of buyers – equipment manufacturers – and their suppliers and service centers for steel production.
Author: Christian Kel Germany
Kallanish.com