European domestic hot-rolled coil prices inched up March 13, with market sources weighing the European Commission’s safeguard adjustments and other trade pressures.
Despite earlier hopes that the safeguard review would lead to significant shifts in market dynamics, steel producers have largely welcomed the changes, while importers and traders expressed frustration over quota reductions and increased restrictions on carryover volumes.
A Germany-based distributor said the adjustments are a “balanced plan,” noting that while the changes were not drastic, they reinforced protectionist measures without overtly increasing tariffs.
The market was divided on the impact of the safeguard revisions. A source at a major European mill said expectations for dramatic price changes were unrealistic and that the safeguard measures were “having an effect” but not triggering immediate price hikes. Meanwhile, traders voiced concerns that the reduction of available import quotas—particularly with Russian volumes no longer being reallocated—was limiting supply options.
HRC offers in Northwest Europe were heard at Eur650-660/mt ex-works Ruhr, with tradable values at Eur635-650/mt. In southern Europe, HRC tradable values remained in a similar range, while lower-priced import offers, such as Eur570-580/mt CIF Italy from Asia, were deemed unworkable due to quota constraints and anticipated antidumping measures.
The broader global trade environment is also weighing on the market outlook. While trade tensions with the US may not have an immediate impact on domestic steel pricing, they contribute to the overall uncertainty in the market, a European distributor said.
Looking ahead, sources expect European steel prices to continue rising gradually over the coming weeks, with potential increases of Eur10-20/mt. However, demand remains weak. A German distributor noted that optimism surrounding the new government’s planned stimulus measures—estimated at $500 billion—could support steel demand in the medium term.
Platts assessed HRC in Northwest Europe at Eur630/mt EXW Ruhr, up Eur5 on the day, and in southern Europe at Eur620/mt EXW Italy, stable on the day.
Platts assessed imported HRC in Northwest Europe at Eur545/mt CIF Antwerp and in Southern Europe at Eur545/mt CIF Italy, both stable on the day.
Platts is part of S&P Global Commodity Insights.
