Steel hollow sections prices in Europe’s domestic markets rose further during the month to Wednesday January 21 after the implementation of the EU’s Carbon Border Adjustment Mechanism (CBAM) on January 1 reduced import competition and lifted feedstock costs.
CBAM is an EU climate policy that puts a carbon price on certain imported goods based on their embedded greenhouse gas emissions.
Fastmarkets’ monthly price assessment for steel sections (medium) domestic, delivered Northern Europe was €770-840 ($902-984) per tonne on Wednesday, up by €10-40 per tonne from €760-800 per tonne a month earlier.
Fastmarkets’ monthly price assessment for steel sections (medium) domestic, delivered Southern Europe was €770-840 per tonne on Wednesday, up by €10-40 per tonne month on month from €760-800 per tonne.
Prices were also supported by bullish offers, with producers often targeting higher prices in the new year.
Hot-rolled coil feedstock costs have been moving up steadily since July.
More recently, CBAM-cost considerations and uncertainty have limited import availability, supporting higher prices in Europe’s domestic HRC markets.
Fastmarkets’ daily calculation of its steel HRC index domestic, exw Northern Europe was €642.59 per tonne on Wednesday, up by €16.34 per tonne from €626.25 per tonne a month earlier and up by €97.59 per tonne from €545 per tonne on July 8 last year.
