Activity in EU HRC market slow until long-term negotiations end

The European hot-rolled coil market remained in “wait-and-see” mode on Wednesday November 24, with buyers waiting for the conclusion of long-term agreements before entering the spot market, sources told Fastmarkets.

Long-term prices for flat steel will increase year on year, rising from €1,000 ($1,124.76) to €1,050 per tonne ex-works, according to market participants. But the volumes acquired by the automotive industry, a key end consumer of coil, remain uncertain.
In the second half of 2021, steel demand from EU carmakers fell by about 30%, market participants said, because the global shortage of semiconductors meant that they could not produce the usual number of vehicles.
In October, EU passenger car sales fell 30.26% year-on-year to 665,001 units, the European Automotive Manufacturers Association (ACEA) said.

Although the situation should improve next year because big automakers have reportedly begun to resolve the semiconductor supply problem, some market participants doubt that...

Published

Maria Tanatar

November 24, 2021

17:42 GMT

London