The European hot rolled coil (HRC) market showed little movement this week, with domestic prices holding steady across both northern Europe and Italy. Import demand has remained subdued, as ongoing uncertainty over Carbon Border Adjustment Mechanism (CBAM) requirements and quota limits continued to weigh on buyer sentiment.
Specifically, local mills in northern Europe are reported to be targeting €600-630/mt ex-works for new orders for November deliveries, mainly the same as last week, while HRC offers from Italian mills have remained at €570-580/mt ex-works for October delivery. However, the tradable price level has remained at €570-580/mt ex-works levels in the north, with a few market insiders reporting transactions at €560/mt ex-works and €540-550/mt ex-works in Italy, with no sizable deals reported this week.
In the meantime, the import market has remained subdued as uncertainty over CBAM rules and limited quota availability curb purchasing appetites. Industry participants have reported that most buyers prefer to delay orders until the outlook becomes clearer. Indicative offers for import HRC have been reported in the range of €505-540/mt CFR, depending on the origin, up by €5/mt on the lower end of the range week on week. The lower end of the range corresponds to ex-Indonesia HRC offers in southern Europe, which have been voiced at €505-515/mt CFR Spain and at €510/mt CFR Italy.
Meanwhile, the higher end of the range corresponds to offers for ex-Turkey HRC at €520-540/mt CFR, duty included, the same as last week. Indicative offers for ex-India HRC have remained at $610/mt CFR, which translates to around €523/mt for November shipment.
At the same time, according to sources, Japan has been closing deals at €570/mt DDP, as customers are unwilling to purchase on CIF FO terms. “€570/mt DDP is high, but DDP includes CBAM, and clearance will be in January 2026,” a market insider told SteelOrbis, adding, “CBAM for sure will be a minimum of €30-40/mt and may even be €50-60/mt, no one knows, but some traders are taking this risk if mills are supporting the operation, as they know which carbon content figures they will give.”
“Many other suppliers like those from Algeria are not offering to Spain, aware that no quota will be available for the remainder of this year. Buyers are also avoiding transactions for 2026 clearance until the European Commission clarifies which CBAM rules will apply. As a result, nearly all customers are sourcing from European mills, relying on material already sold in advance,” a Spain-based trader said.
$1 = €0.86