European hot-rolled coil (HRC) suppliers were pushing for higher offers for second-quarter delivery material. Buyers held back, but prices were increasing step by step, supported by the Carbon Border Adjustment Mechanism (CBAM), Fastmarkets heard on Thursday January 29.
HRC prices in Northern Europe were still lagging behind official offers. Since the beginning of January, however, domestic prices had been gradually increasing and, in the past couple of weeks, buyers have started showing more acceptance of higher prices.
“There are not many alternatives. The pool of import suppliers is smaller because of CBAM, safeguards, antidumping duties, so European mills are comfortably booked and managed to slowly push prices up,” a buyer in Germany said.
In Germany and the Benelux area, levels of €650 ($778) per tonne ex-works were gradually achieved in deals.
Buyers’ estimates of workable levels were reported at €650-660 per tonne ex-works.
Offers from integrated mills in Northern Europe were reported at €670-685 per tonne ex-works for April delivery coil. March delivery HRC was heard to be largely sold out, with only limited availability left at some suppliers.
Italy-origin coil was offered to Germany at €680-700 per tonne delivered, but so far buyers were reluctant to accept higher offers, so no new business was reported.
As a result, Fastmarkets’ daily steel hot-rolled coil index domestic, exw Northern Europe was €655.83 per tonne on Thursday, up by €0.83 per tonne from €655.00 per tonne on Wednesday January 28.
The index was up by €12.08 per tonne week on week and by €28.33 per tonne month on month.
Fastmarkets’ corresponding daily steel hot-rolled coil index domestic, exw Italy was calculated at €643.33 per tonne on Thursday, increasing by €0.83 per tonne from €642.50 per tonne a day earlier.
The index was up by €7.70 per tonne week on week and by €20.21 per tonne month on month.
Several market sources indicated that Italian producers could still offer March-delivery coil.
Target prices were reported around €650-660 per tonne ex-works.
But buyers suggested that achievable prices were closer to €630-640 per tonne ex-works, reflecting recent transaction levels.
Supplier sources estimated workable levels at no lower than €640-650 per tonne ex-works, while one producer set the bar at €650 per tonne ex-works minimum.
“Demand is slow, waiting for real discussions,” a mill source said.
“The current market situation is still dull, there is still no real restart of demand,” another supplier said.
In the secondary market, 4mm HR sheet was offered at around €750 per tonne delivered, but some steel service centers were still able to sell at €720-730 per tonne CPT using old HRC feedstock, sources said.
Meanwhile, market participants said appetite for fresh import bookings remained limited because of the EU’s forthcoming CBAM rules, the shift to the new trade regime and uncertainty around the quota volumes still available under existing safeguard measures.
Interestingly, several sources pointed out that for actual import bookings currently happening in the market, parties were using actual emissions data for CBAM cost calculations.
“Final emissions verification is expected in early 2027 based on 2026 reporting,” a source familiar with the matter said.
A minor tonnage of HRC from India, meanwhile, was heard booked in Italy at €600 per tonne DDP, CBAM costs included. Turkish HRC was on offer to Italy at €630-640 per tonne DDP, CBAM costs included.
