Trading activity in the European hot rolled coil (HRC) market has remained subdued over the past week, with local prices largely stable or edging lower in some offers. Buyers continue to act cautiously, avoiding large-volume bookings due to ongoing market uncertainty. At the same time, as the EU’s Carbon Border Adjustment Mechanism (CBAM) approaches its full implementation in 2026, market participants are beginning to reassess their strategies for sourcing materials from outside the bloc.
Mills across Europe are actively seeking new orders ahead of the summer slowdown, but weak demand for HRC is leaving order books thin. Some producers are facing significant gaps that need to be filled, yet hesitation among buyers persists in the face of softening prices. More specifically, most local HRC prices from mills in northern Europe, mainly for July deliveries, have been voiced to €635-645/mt ex-works, the same as last week. In the meantime, offers from an Italian mill have been reported in Germany at around €640-650/mt delivered, compared to €650/mt delivered last week, though, according to most market insiders, tradable prices in northern Europe have been estimated at €620-640/mt ex-works, the same as last week.
“With the seasonal holiday lull approaching and no signs of stronger demand, a short-term recovery in the market appears unlikely,” a market insider told SteelOrbis.
Meanwhile, in Italy, most offers from mills have been estimated at €620/mt ex-works, the same as last week. However, as anticipated workable prices have dropped to €590-600/mt ex-works, against €600-605/mt ex-works last week.
In the meantime, import trading activity has been subdued this week, with growing market chatter around the EU’s CBAM ahead of its full rollout in 2026. As the deadline draws closer, many market participants are beginning to rethink their approach to sourcing steel from outside the bloc. “Tangible effects of CBAM could start to emerge as early as the second half of 2025, leading to increased caution around long-lead import deals. Also, there is uncertainty about how the mechanism will be applied, particularly in relation to logistics and potential delivery delays,” a market insider told SteelOrbis.
Most offers for import HRC in southern Europe have been voiced at €520-570/mt CFR, depending on the supplier, down by €10/mt on the lower end of the range week on week. Offers from one of Indonesian mills HRC have been reported at the lower end of the range or around €520-530/mt CFR, the same as last week, however, according to sources, higher offers from other Indonesian producers have also been reported at €560-580/mt CFR. Besides, offers from other Asian suppliers, including those from India and Thailand, have been voiced €555-570/mt CFR, the same as last week.
Meanwhile, official starting price offers from Turkey have been reported at relatively the same level as last week - €540-550/mt CFR duty paid, though, according to sources, a number of customers estimate workable prices at an even lower level - €525-530/mt CFR, duty paid. Furthermore, offers for ex-Algeria HRC have been heard at €540/mt CFR, with freight estimated at $50/mt or €44/mt.
$1 = €0.89