Sentiment in the German steel market has been generally subdued this week, especially in hot-rolled coil (HRC). Steel mills are currently working to stabilize the market and enter tough 2025 contract negotiations with the automotive supply chain. Automakers hope to significantly lower prices to bring contract prices closer to spot prices. When the market is down, automakers often delay or cancel orders, further weakening demand and putting pressure on steel mills.

One factor supporting prices is the EU's retroactive tariffs on steel imports from Egypt, India, Japan, and Vietnam, with final tariffs expected to be retroactive to imports from January this year. The industry generally believes that the European Commission will introduce more supportive measures.

In addition, steel mills continue to produce despite weak demand to obtain free carbon emission allowances. However, as market pressure increases, steel mills may choose to reduce production in early 2025.