Domestic steel coil prices in Europe traded higher in the week to 24 July, although some steelmakers still had limited volumes of discounted material.
Average transaction prices for hot-rolled coil (HRC) in Northwest Europe have been heard at EUR720-730/t ex-works for September rolling.
Some steelmakers, however, have booked HRC at around EUR700/t ex-works, but the volumes were limited and only available to a limited number of customers seeking to acquire steel with specifications the mills needed to fill their production plans for.
The lower prices are expected to fade as order books fill for the third quarter, supported by the effects of the EU’s new tougher steel import quotas and the Carbon Border Adjustment Mechanism (CBAM).
Northwest European mills have been offering HRC at EUR740-760/t ex-works, and market sources expect that deals will be settled at the target prices later in August-September, when market activity recovers from the summer lull.
While upward sentiment is strong in the European market, participants expressed concerns regarding imports of downstream goods produced from steel, a segment not restricted by trade measures, and the lack of demand recovery. Sources said that unless the EU authorities take action, imported steel will increasingly enter the EU embedded in manufactured steel products, harming both steelmakers and steel distributors.
“Demand is slow and the question is what demand will there be in September? The uptrend is here to stay, but what will happen with imports of steel-containing goods,” a Benelux-based distributor said.
Although real demand is unlikely to recover beyond seasonal fluctuation, the trade policies will allow European steelmakers a larger share of the market, supporting domestic prices.
“Real consumption will not improve this year, but European mills will enjoy a bigger market share due to quotas,” an Italian service centre source said.
Further supporting the domestic price rise, distributors reported a recovery in prices for slit and cut coil, signalling that end consumers have caught up with the uptrend.
In Italy, deals for domestic HRC have been settled at EUR700/t ex-works, with mills seeking an increase to EUR720-740/t ex-works.
Downstream coil segment
Domestic prices for both cold-rolled (CRC) and hot-dipped galvanized (HDG) coil also increased over the week. In Northwest Europe, steelmakers claim that they have closed September rolling for both products.
Domestic CRC prices in the region have been reported at EUR800-840/t ex-works, with the majority of indications heard at around EUR820/t ex-works. HDG prices have been heard at EUR800-850/t ex-works.
The limited availability of imported HRC, used by re-rollers as feedstock for downstream coil, after the new quota system came into force has restricted sales volumes of CRC and HDG, sources said. Some market participants suggested that the re-rollers might face significant feedstock shortages.
Indian exporters return to Europe
Steel producers from India have returned to the European market and made some sales as they have quota volumes available and have guaranteed potential buyers lower embedded carbon emissions, securing lower CBAM duties.
Some sources said that exporters from India were offering to cover 50% of potential CBAM duties, but the majority of market participants questioned whether that could be enforceable since the duties for 2026 would be paid in late 2027. The prices for Indian HRC, however, were competitive enough to attract buyers even with tariff-rate quotas and CBAM risks.
A deal with a large Italian buyer for Indian HRC has been heard at EUR565/t CIF, as the buyer usually purchases larger lots, allowing for price discounts. Offers of Indian material have been reported at EUR580/t CIF Italy.
Turkish exporters have been offering HRC at EUR590/t CIF Italy, but European buyers have been avoiding such purchases due to risks related to the new quotas.
Buyers who traditionally relied on imported steel will now have to find alternative sources of supply, most likely turning to domestic producers. In fact, sources have already reported higher demand for European coil.
The new quota system has forced distributors to cancel orders for imported coil, notably material from Asia.
Green steel market
The green steel market has remained split into two distinct segments – distributors and end users.
End consumers have continued to show greater interest in low-CO2 steel, with more buyers making trial purchases and accepting higher premiums. End consumers are less exposed to higher steel costs because they can dilute them within the total cost of the final goods.
Deals for smaller lots of green HRC have been concluded at EUR150-180/t premiums.
Distributors, in the meantime, were reluctant to commit to green steel purchases due to higher risks related to stocking costlier material and their focus on adjusting their traditional steel business to the new reality under tighter quotas and CBAM.
“For distributors, green steel is not a priority as there are more pressing issues of survival under the new regulations, like quotas and CBAM,” a German service centre said.
When distributors had a customer in mind and did not have to store the material, they were ready to accept EUR80-100/t green steel premiums.
| Weekly European steel coil | |||||
| EUR/t | Term | 24-Jul-26 | Change | ||
| Weekly Northwest Europe steel coil | |||||
| Northwest Europe ex-works HRC | EX-WORKS | 725.00 | 5.00 | ||
| Northwest Europe ex-works CRC | EX-WORKS | 820.00 | 10.00 | ||
| Northwest Europe ex-works HDG | EX-WORKS | 825.00 | 5.00 | ||
| Northwest Europe CIF HRC | CIF | 590.00 | -30.00 | ||
| Northwest Europe DDP port HRC | DDP Port | 675.00 | 0.00 | ||
| Weekly South Europe steel coil | |||||
| Italy ex-works HRC | EX-WORKS | 700.00 | 5.00 | ||
| South Europe CIF HRC | CIF | 580.00 | -20.00 | ||
| South Europe DDP port HRC | DDP Port | 675.00 | 0.00 | ||
| South Europe CIF CRC | CIF | 680.00 | -20.00 | ||
| South Europe DDP port CRC | DDP Port | 765.00 | -10.00 | ||
| Show less… | |||||
| Source: McCloskey by OPIS. | © 2026 Dow Jones Energy Limited. | ||||
| Weekly green steel | |||
| EUR/t | Term | 24-Jul-26 | Change |
| Green Northwest Europe HRC premium (scopes 1-3 CO2 under 0.8t) | 100.00 | 20.00 | |
| Green Northwest Europe ex-works HRC (scopes 1-3) | EX-WORKS | 825.00 | 25.00 |
| Green HRC premium (scopes 1-2 CO2 under 0.5t) | 100.00 | 20.00 | |
| Green Northwest Europe ex-works HRC (scopes 1-2) | EX-WORKS | 825.00 | 25.00 |
| Green HRC reduced carbon price (scopes 1-3) | 71.89 | 8.58 | |
| Source: McCloskey by OPIS. | © 2026 Dow Jones Energy Limited. | ||
Author: Maria Tanatar
