European prices for cold rolled coil (CRC) and hot dip galvanized coil (HDG) have continued to edge upward since late February, with local mills pushing through another moderate increase. The upward movement has been largely supported by constrained domestic supply and ongoing restrictions on imports. At the same time, uncertainty surrounding the war in the Middle East and its potential impact on international trade routes has added further tension to the market. Import activity across the European market has remained relatively muted. This has mainly been linked to the impact of CBAM, alongside existing trade defence measures, including safeguards and ongoing antidumping investigations.
More specifically, in the domestic CRC market, most mills in Italy and northern Europe have been targeting €790-820/mt ex-works, the same as two weeks ago. However, tradable prices have been estimated at around €785-790/mt ex-works in northern Europe, up by €10-15/mt over the past two weeks, while workable prices in Italy have been estimated at around €800/mt ex-works.
During the past week, market participants have grown increasingly concerned following the attack by the US and Israel on Iran. The escalation has already been translated into higher energy prices across Europe, raising concerns about additional cost pressure for steel producers and downstream industries.
In the import segment, offers for CRC have been rare this week, with indicative prices settling at €660-680/mt CFR, depending on the supplier, the same as two weeks ago. Very few offers have been heard on CFR basis this week, due to AD duty and considering that customers are unwilling to take the risk of purchasing without clarity on CBAM costs. Furthermore, offers for import CRC on DDP basis, including CBAM costs, have been estimated at €750-780/mt DDP, the same as two weeks ago.
According to market sources, fresh import offers of CRC and HDG have been extremely scarce amid CBAM-related uncertainty, the Middle East situation, and the ongoing antidumping investigation against CRC imports from India, Japan, Taiwan, Turkey and Vietnam.
In the HDG segment, most mills both in Italy and in the north of Europe have been targeting €795-820/mt ex-works for June delivery, while domestic tradable prices have settled at €790-800/mt ex-works in northern Europe, up by €20/mt over the past week, and at around €795/mt ex-works in Italy.
According to sources, logistical disruptions have been affecting import flows. The war in the Middle East has forced a number of vessels traveling from Asia to Europe to avoid traditional routes and sail around the Cape of Good Hope. This detour has extended transit times by approximately two weeks and has further reduced the availability of prompt import cargoes in the European market.