European flat steel prices increased in the week to Wednesday January 14, supported by good order books at suppliers; near-term expectations remained upbeat as new regulations curb import flows, Fastmarkets heard.
According to sources, market mood remains positive as mills remain comfortably booked while the EU’s Carbon Border Adjustment Mechanism (CBAM), which came into full effect on January 1, is already affecting import volumes.
“I can see that a lot of people who were very much import-oriented are now saying that they do not want to take risks,” a distributor source said, pointing to a shift in people’s focus towards domestic producers.
In December, the European Commission finalized the benchmarks and default emission values that indicate the carbon costs that importers must pay to adhere to CBAM rules. These costs can vary significantly based on the place of origin.
CBAM’s cost exposure for importers and the proposed introduction of updated steel import safeguards later in the year are expected to profoundly shift trade flows in 2026, supporting domestic production in the process.
Mills across Europe were said to be already broadly sold out for the first quarter, for both cold-rolled coil (CRC) and hot-dipped galvanized (HDG), with the products already mainly offered for April delivery, Fastmarkets heard.
Northern Europe
Fastmarkets’ weekly price assessment for steel cold-rolled coil, domestic, exw Northern Europe, was €740-750 ($862-873) per tonne on Wednesday, rising from €720-740 per tonne the previous week.
The upper end of the assessment reflects estimates of workable levels heard at €750 per tonne ex-works during the assessment period.
A German market source reported a higher offer at €770 per tonne ex-works during the week to Wednesday, but it was not included in the final assessment as no deal had yet been confirmed.
One market source reported a target offer for April-delivery CRC at €800 per tonne ex-works from one European supplier, but this was not widely confirmed by other sources.
Meanwhile, CRC import prices for Northern Europe were stable for both CFR and DDP assessments this week, indicating low interest from the market in buying imported materials.
Fastmarkets’ weekly price assessment for steel cold-rolled coil, import, cfr main port Northern Europe was unchanged at €604-620 per tonne on Wednesday, while the weekly price assessment for steel cold-rolled coil, import, ddp Northern Europe, was stable at €700-730 per tonne.
No new trading activity was reported during the assessment period.
According to a market source, most of the “big traders” in the region are offering CFR prices for imported materials, with the customers having to ultimately deal with the burden of CBAM-related costs and potential implications with the safeguards.
“Most of the Northern European customers don’t want to risk having to pay much, much higher prices at the end of the day,” the source said.
On the other hand, domestic HDG coil prices also increased in Northern Europe.
Fastmarkets’ weekly price assessment for steel hot-dipped galvanized coil, domestic, exw Northern Europe, was €745-770 per tonne on Wednesday, rising from €735-745 per tonne during the previous week.
The assessment reflects estimates of workable levels heard hovering at around €745-770 per tonne during the assessment period. An offer was also reported at around €780-800 per tonne during the week to Wednesday, for April-delivery material.
Italy-origin HDG was offered to Germany at €770-780 per tonne base delivered.
HDG imports to Northern Europe were also stable, with no new trades reported during the assessment period amid market uncertainty regarding new regulations.
Fastmarkets’ weekly price assessment for steel hot-dipped galvanized coil, import, cfr main port Northern Europe, was stable at €680-720 per tonne on Wednesday, while the weekly price assessment for steel hot-dipped galvanized coil, import, ddp Northern Europe, was flat at €730 per tonne.
Following the publishing of this week’s assessment, a source also reported offers for domestic, March-delivery CRC and HDG at €750 per tonne ex-works.
Southern Europe
Domestic CRC and HDG prices in Southern Europe also increased in the week to Wednesday, with a trader source in the region saying that prices are “destined” to increase with the introduction of new trade regimes and safeguards.
The source, however, also pointed to persistent “weak demand” following the holiday period while the market digests the new changes brought in with CBAM.
Fastmarkets’ weekly price assessment for steel cold-rolled coil domestic, exw Southern Europe, was €750-770 per tonne on Wednesday, rising from €730-750 per tonne heard in the previous week.
The assessment reflects estimates of workable levels heard hovering at around €750-770 per tonne ex-works, compared with €730-750 per tonne ex-works during the previous assessment period.
A regional market source also reported an offer at €760-780 per tonne ex-works during the week to Wednesday.
CRC import prices in Southern Europe remained flat for both CFR and DDP assessments.
Fastmarkets’ weekly price assessment for steel cold-rolled coil, import, cfr main port Southern Europe, was stable at €600-620 per tonne, while the weekly price assessment for steel cold-rolled coil, import, ddp Southern Europe, was €700-725 per tonne, also unchanged.
An offer for Thailand-origin CRC was reported at €655 per tonne CFR to Italy, excluding CBAM costs. But it was deemed unworkable by buyer sources.
Similarly, domestic HDG prices in Southern Europe also grew.
Fastmarkets’ weekly price assessment for steel hot-dipped galvanized coil, domestic, exw Southern Europe, was €760-770 per tonne on Wednesday, rising from €730-750 per tonne during the previous week.
The assessment matches estimates heard at €760-770 per tonne ex-works during the week to Wednesday, while offers for HDG were reported within the range of €760-780 per tonne ex-works.
Resembling similar trends with CRC imports, HDG imports were also affected by low market interest amid new CBAM regulations.
Fastmarkets’ weekly price assessment for steel hot-dipped galvanized coil, import, cfr main port Southern Europe, was stable at €680-700 per tonne on Wednesday, while the price for steel hot-dipped galvanized coil, import, ddp Southern Europe, was also flat at €720-730 per tonne.
–Julia Bolotova in Brussels contributed to this report
