European HRC producers have held their January delivery offer prices steady at elevated levels this week. Import activity has continued to be weak, hindered by ongoing CBAM-related compliance issues and quota constraints. Besides, a leaked document released this week revealed the European Commission’s long-anticipated draft CBAM benchmark values, providing EU importers with the critical data needed to assess steel import costs from January 1, 2026. However, market sources claim that the numbers are provisional and may be adjusted, with most industry voices already questioning them.
More specifically, local mills in northern Europe are reported to be targeting €630-650/mt ex-works for new orders for January and February deliveries, the same as last week. However, according to sources, the tradable price levels for January delivery coils have been estimated at €600-620/mt ex-works for mainly January delivery, the same as last week. Sources also report that EU mills are in ongoing talks with automotive equipment makers for 2026 supply agreements, prompting them to maintain firm spot prices to preserve their negotiating power.
Meanwhile, in Italy, while mills have been targeting €620-630/mt for January delivery, the same as last week, the tradable price level for January delivery is still estimated at €590-600/mt ex-works.
In the import segment, indicative offer prices for HRC have settled at €475-520/mt CFR, compared to €470-520/mt CFR last week. The lower end of the range corresponds to offers for ex-Indonesia, ex-Malaysia and ex-India HRC at €475-490/mt CFR, mainly the same as last week. All prices exclude CBAM costs.
Offers for ex-Turkey HRC have been heard at around €520/mt CFR, duty included, mainly the same as last week, but without CBAM costs, though, according to sources, EU traders have this week been offering ex-Turkey HRC at €580-600/mt DDP, including CBAM costs.
Furthermore, market insiders have continued to report HRC import offers from different global suppliers coming to the region including CBAM costs on DDP basis at €560-600/mt levels, depending on the supplier, up by €20/mt on the higher end of the range week on week. “We heard several transactions have been done at €580-600/mt DPP for HRC from Vietnam, Algeria and Indonesia through traders this week,” a Spanish trader told SteelOrbis. This means the spread between import prices without CBAM and import offers on DDP basis, including CBAM-related costs, has reached €90-100/mt.
It is worth mentioning that this week’s leaked document unveiled the European Commission’s long-expected draft CBAM benchmark values, offering EU importers key inputs for estimating steel import costs beginning January 1, 2026. Yet the benchmarks are not final, and some in the sector have cast doubt on them. According to McCloskey calculations based on the leaked draft, CBAM costs for HRC imported into the EU would range from €43-140/mt for Turkish material depending on the production route (BF-BOF, DRI-EAF, scrap-EAF), reach around €223/mt for Indian HRC, and climb as high as €540/mt for Indonesian material. The market reaction to these figures has been overwhelmingly negative, with most participants doubting their accuracy and questioning whether the draft values can be taken as credible.
