European domestic coil producers targeted higher prices for third quarter production in the week to 2 April, while spot prices for second quarter rolling material remained stable, despite special deals settled with a substantial discount in special circumstances.
Northwest European steelmakers have started to offer third quarter production hot-rolled coil (HRC) at EUR750-770/t ex-works, seeking around a EUR50/t increase compared to the latest transactions. While no spot deals have yet been settled at higher prices, some market participants believe that the combination of toughening of EU import quotas, Carbon Border Adjustment Mechanism (CBAM) effects, and rising energy costs will force buyers to accept higher prices later this year.
The majority of transactions in the region have been reported at EUR700-730/t ex-works, with most sources reporting deals at EUR720/t ex-works.
A steelmaker in the region has transacted HRC at a lower price of 680/t ex-works. While this information was widely confirmed across the market, reactions with mixed among market participants. Some claim the deal level is evidence of a reverse in price direction, expecting sluggish demand and further weakening of steel consumption to offset bullish supply drivers and soften price levels. Others, however, see the discounted deals as special trades, not repeatable by other buyers and instead offered at lower prices to fill gaps in mill orderbooks.
Multiple market sources, including a party to one of the deals, said that such prices were available only for a limited period to select customers, in small volume, to fill second quarter rolling schedules. The steelmaker has reportedly suffered worse order books in comparison to competitors, with other northwestern steelmakers denying equivalent bids.
“Some deals made with a discount is not a sign of a trend change,” a German service center said. “Some people are trying to speculate on the usual special deals to fill production lines. Such prices could also be available for index-based sales, but not in the spot market.”
Sources reported a deal settled below EUR700/t ex-works in Poland, attributing the trade to an index-based agreement.
Concerns regarding a possible demand decline were fairly unanimous across the market, given the negative outlook for the automotive industry as a result of the geopolitical situation in the Middle East. Sentiments became particularly acute following Iran’s bombing of aluminium plants in UAE and Bahrain on 29 March, in retaliation for US attacks on Iran’s own steel mills, causing a sharp rise in aluminium prices. This has worrying implications for the automotive sector, as rising oil costs are reportedly also driving prices of plastic car components higher. As supply disruption to only a portion of automotive material requirements could stop production, market participants fear the potential impact on steel consumption.
Despite concerns, multiple sources said that European steelmakers would rather shut down some furnaces to balance supply and demand, than accept lower steel prices.
“Energy costs are higher and will move further up in the second half of the year,” a trader said. “Even if carmakers reduce steel consumption, the demand drop will be bigger compared to cuts of import volumes. Mills will do what they did before – and stop some furnaces.”
In Italy, domestic prices for HRC have been reported at EUR700/t ex-works for second quarter production.
Import HRC offers dry up
The number of import offers for HRC in Europe has decreased as exporters are dealing with rising energy and freight costs, as well as cost risks related to the EU’s new steel import quotas, expected to be in force for July.
European buyers are avoiding relying on the overseas material on similar risk factors, as well as CBAM. Buyers report a preference to monitor import quota usage in the second quarter, assessing whether imports from neighboring exporters (able to deliver before July) might be more attractive in the coming months.
The only import offers of HRC from Turkey have been heard at EUR570-580/t CIF, anti-dumping duty inclusive.
Offers of Asian material on a DDP basis were reported at EUR680-690/t.
Downstream coil – CRC availability scarce
Availability of cold-rolled coil (CRC) remains limited on the continent; European mills have been avoiding the product due to high energy costs, preferring to focus attention on HRC or hot-dipped galvanized coil (HDG), with their higher added value.
CRC offers in Northwest Europe have been reported at EUR820-840/t ex-works; and HDG at EUR800-850/t ex-works.
On top of this domestic prioritization of other coil products, import availability of CRC has also decreased due to both pending quota reductions and the Commission’s anticipated decision on the EU’s active anti-dumping probe. The European Commission started an investigation into CRC imports from India, Japan, Turkey, Vietnam and Taiwan, China in September last year.
Only one deal for ex-China CRC was reported at EUR570-580/t CIF Europe, but adding anti-dumping duties brings the price to around EUR690/t CIF. The import will also be subject to CBAM duties, and potentially out-of-quota duties if the volumes exceeds relevant quota limits.
Import CRC from Asia, including CBAM duties, was reportedly available at EUR780-790/t DDP Italian ports.
EU green steel market
Green steel trading has not been a priority for most spot buyers, particularly taking into account demand concerns and rising costs. Sources, however, do report a gradual increase in demand from projects that need to meet their decarbonization targets. Volumes remain muted in comparison to traditional steel trading, but market sources believe that the European Commission’s proposed Industrial Accelerator Act could boost demand for low-CO2 steel moving forward.
Spot buyers estimated achievable green premiums at EUR80-90/t for HRC with CO2 content of around 0.7t.
| Weekly European steel coil | |||||
| EUR/t | Term | 02-Apr-26 | Change | ||
| Weekly Northwest Europe steel coil | |||||
| Northwest Europe ex-works HRC | EX-WORKS | 720.00 | 0.00 | ||
| Northwest Europe ex-works CRC | EX-WORKS | 830.00 | 0.00 | ||
| Northwest Europe ex-works HDG | EX-WORKS | 820.00 | 0.00 | ||
| Weekly South Europe steel coil | |||||
| Italy ex-works HRC | EX-WORKS | 700.00 | 0.00 | ||
| South Europe CIF HRC | CIF | 575.00 | 15.00 | ||
| Source: McCloskey by OPIS. | © 2026 Dow Jones Energy Limited. | ||||
| Weekly green steel | |||
| EUR/t | Term | 02-Apr-26 | Change |
| Green Northwest Europe HRC premium (scopes 1-3 CO2 under 0.8t) | 85.00 | -5.00 | |
| Green Northwest Europe ex-works HRC (scopes 1-3) | EX-WORKS | 805.00 | -5.00 |
| Green HRC premium (scopes 1-2 CO2 under 0.5t) | 85.00 | -5.00 | |
| Green Northwest Europe ex-works HRC (scopes 1-2) | EX-WORKS | 805.00 | -5.00 |
| Green HRC reduced carbon price (scopes 1-3) | 50.61 | -17.94 | |
Author: Benjamin Steven & Maria Tanatar
