Hot Dipped Galvanised Coil (HDG) prices in Germany increased in the second week of March 2025, keeping up the rising trend that started at the beginning of the month. Italian HDG prices went up by the same amount as European steel markets face growing pressure from fewer imports and supply problems.

Key Takeaways:

• German and Italian HDG prices went up 1% last week
• Fire at Salzgitter's steel mill has cut German steel supply
• Northern European mills offering HDG for mid-May/June at higher prices
• Asian HDG imports looking less good due to limits and trade risks
• Trump's 25% tax on steel making European market problems worse
• Industry fears steel meant for US market will flood into Europe

The HDG market in Germany has been getting hotter since early March, mostly because of supply problems happening all at once. The fire at Salzgitter Flachstahl's mill on February 28 has really hurt local steel making, forcing buyers to look hard for other options. This supply shortage came just as mills were already pushing delivery dates for HDG into May or June, letting them raise prices.

German HDG prices have gone up more than other flat steel products. Northern European mills have pushed through price increases that are bigger than those for standard hot-rolled products, with market prices climbing steadily week after week.

Imports aren't helping buyers either. HDG from Asia that might normally offer lower prices is now seen as too risky because import limits are running out fast. One trader said, "Even if Asian HDG looks cheap on paper, getting it through customs is another story. The limits are disappearing fast."

Making things worse for the European market is Trump's return to tough trade policies. The 25% tax on all steel imports to the US has European makers very worried that millions of tons of steel originally headed for America will now come to Europe instead. This change could eventually bring HDG prices down, but for now, the supply shortage is keeping them high.

Italian HDG prices have followed a pattern like Germany's, with local mills offering product at high prices while buyers try to get small discounts. This similar movement suggests bigger European factors are driving the market rather than just local conditions.

As per ChemAnalyst, HDG prices in Germany are expected to stay high throughout March and maybe into April, supported by the Salzgitter fire and limited imports. However, the second half of spring could see pressure building as steel that was meant for the US possibly floods the European market. The key things to watch will be how quickly Salzgitter can fix its production and whether the EU puts in stronger protection measures to counter the Trump taxes. Without such protection, the HDG price increase could stop by summer despite current supply shortages.