The European HRC market has remained largely stable this week, with domestic prices in both northern Europe and Italy holding steady. Mills have continued to target levels at least €30/mt above what buyers considered workable, highlighting the gap between offers and achievable transactions. In the import segment, trading activity has been weighed down by ongoing concerns over Carbon Border Adjustment Mechanism (CBAM) and quota limitations, although indicative prices have edged up by around €10/mt week on week.
Specifically, local mills in northern Europe are reported to be targeting €600-630/mt ex-works for new orders for October and November deliveries, mainly the same as last week. However, the tradable price level has remained at €570-580/mt ex-works level.
According to sources, in northern Europe, mills are seeking higher prices for coils, but sources doubt demand to be sufficient to sustain the upward momentum.
In Italy, mills have been targeting €570–580/mt ex-works for October-delivery HRC, unchanged from last week, but workable levels are estimated closer to €540/mt ex-works, with some sources also citing offers at around €550/mt ex-works.
Import activity has remained virtually at a standstill, as persistent uncertainty over the implementation of the Carbon Border Adjustment Mechanism (CBAM) continues to weigh on buying sentiment coupled with exhausted quota for many origins. Market participants noted that most buyers are refraining from placing new orders until greater clarity emerges, while indicative offers for imported HRC were reported in the range of €485–540/mt CFR, depending on origin, up by €10/mt week on week.
The lower end the of the range corresponds to deal price for around 25,000 mt of ex-Indonesia HRC reportedly signed at €485/mt CFR Italy with guarantee of delivery in 2025, though most ex-Indonesia HRC offers in southern Europe have been voiced at €490/mt CFR level. Meanwhile the higher end of the range corresponds to offers for ex-Turkey HRC at €520-540/mt CFR, duty included, up by €10/mt week on week. However, according to sources, deals for ex-Turkey HRC are unlikely in the short run as Turkey has totally exhausted its EU HRC import quota for the third quarter.
Offers for ex-India HRC have been voiced at $605-610/mt CFR, which translates to around €517-522/mt for November shipment, up by €5/mt week on week.
Furthermore, according to sources, EU customers are showing little appetite to buy, citing concerns over CBAM and quota availability. In Spain, for instance, Algeria, which could have been a viable option for timely arrivals, has announced that no quota will be available for the remainder of this year, with clearance pushed back to January 2026. “Current shipments are scheduled for November, but with an additional 100,000 mt already sold, market participants expect that no quota will remain once vessels arrive,” a Spain based trader told SteelOrbis, adding that “Managing quota allocations in Algeria is relatively straightforward, as the market is supplied by only one mill.”
