European hot-rolled coil (HRC) prices were broadly stable in a quiet market while participants digested the recent Carbon Border Adjustment Mechanism (CBAM) updates, Fastmarkets heard on Thursday December 11.
In Northern Europe, trading was quiet. Buyers held sufficient stocks and suppliers were sold out for January delivery and partially for February in some cases, therefore there was no rush for booking from either side.
“Our stocks [of HRC] are more than enough. Overall, there is no shortage of material and still plenty of imports in the ports,” a buyer in Germany said.
“The situation will change dramatically as of January, when CBAM becomes fully operational and new imports costs will jump by €150-200 ($176-235) per tonne or even higher for some origins,” they added.
The European Commission voted to accept benchmarks and default emissions values – key instruments for the implementation of the Carbon Border Adjustment Mechanism (CBAM) – on December 10, Fastmarkets reported.
Due to generally lower benchmarks and higher default values than in previous versions of the documents, CBAM costs for imports were expected to rise dramatically for many origins.
“There is not a single viable import option on the table [for HRC] as of today – all too risky because of CBAM,” a second trader said. “European mills will have an opportunity to push through another round of increases in the first quarter 2026,” they added.
Meanwhile, offers for February delivery HRC were reported at €630-650 per tonne ex-works in Germany and the Benelux area – largely flat since November.
Italian coil was offered to Germany at €650 per tonne delivered, with some transactions heard at €630-630 per tonne delivered.
Deals for domestic HRC in Germany were reported at €610-625 per tonne ex-works recently.
One German source said that for bigger volumes – of 3,000-5,000 tonnes – it was still possible to negotiate €600 per tonne ex-works, but “nobody was booking such big lots lately.”
As a result, Fastmarkets’ daily steel hot-rolled coil index domestic, exw Northern Europe was calculated at €621.17 per tonne on Thursday, up by €1.59 per tonne from €619.58 per tonne on Wednesday December 10.
The index was up by €1.17 per tonne week on week and by €10.29 per tonne month on month.
Sources noted some increase only in offer prices for downstream flats – cold-rolled and galvanized coil – and from only one European supplier to €780 per tonne base delivered for March delivery compared to €750 per tonne base delivered for January and February.
The European CRC market is traditionally dominated by imports, especially for base grades. However, currently over 70% of import CRC volumes are under anti-dumping investigation, Fastmarkets reported, which prompted local buyers to rely more on European mills.
“Mills are also not in a huge hurry to increase flat steel prices. They are well booked and [will] watch how the market develops when CBAM is in,” a third buyer said.
Meanwhile, Fastmarkets’ corresponding daily steel hot-rolled coil index domestic, exw Italy was calculated at €612.50 per tonne on Thursday, up by €0.50 per tonne from €612.00 per tonne on Wednesday.
The index was also up by €10.62 per tonne week on week and by €13.75 per tonne month on month.
Local suppliers were sold out for January volumes, aiming for €610-625 per tonne ex-works for February delivery, but sales were “very limited,” Fastmarkets heard.
“Demand is very slow, buyers are well stocked and the market has already slowed for the festive period,” a seller source in Italy said.
“We will see how the market restarts after holidays in January. Booming prices are unlikely because of the demand situation, but mills will keep pushing prices up,” a buyer source in Italy said
In the secondary market, meanwhile, 4mm HR sheet was trading around €740-750 per tonne CPT, largely stable over the past two weeks.
Meanwhile, market participants said appetite for fresh import bookings remained subdued due to 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.
Earlier in December, a large cargo of India-origin HRC was heard sold to Italy at $500 per tonne CFR for 2026 first quarter arrival, so already subject to CBAM costs. For Indian HRC, using default emissions values, CBAM costs would be over €200 per tonne.
