New orders on the domestic HRC market in Europe; buyers resist price increases
On Tuesday, October 21, several new orders appeared on the domestic market of hot-rolled coils in Northern Europe. However, prices still remain below the factories' targets.
Bids for HRC, which is scheduled to be delivered in December, have increased to at least 600 euros (696 US dollars) per tonne from the plant and to 640 euros per tonne from the plant after the European Commission's proposal for a radical reform of its October 7 measures to limit steel imports were unveiled.
However, consumers are in no hurry to accept the new, higher levels, citing a lack of demand and still great uncertainty about the new proposed measures, as well as the policy of the Carbon Dioxide Emissions Control Mechanism (CBAM), which is expected to be put into effect from January to October 1, 2026.
On October 21, market sources reported two transactions in the range of 580-590 euros per tonne from the plant, which is not far from the levels reached earlier in October and at the end of September.
This is compared to the offer of 620 euros per ton from the factory.- one of the suppliers in Germany reported about the work.
The daily price index for Fastmarkets hot-rolled steel for domestic consumption, exw in Northern Europe on Tuesday was 595.00 euros per ton, an increase of 3.54 euros per ton from 591.46 euros per ton on Monday.
The index rose by 6.25 euros per tonne week-on-week and by 15 euros per tonne month-on-month.
In Italy, offers from local suppliers ranged from 600-610 euros per ton in stock, while customers' price expectations of an acceptable level varied. Some of them provided estimates of 570-580 euros per ton from the plant, adding that higher levels were currently unattainable, while others were closer to the plants' targets, but no specific sales volumes were mentioned.
Fastmarkets Domestic Hot Rolled Steel price index, exw On Tuesday prices for Italy were calculated at 585.42 euros per ton, 0.42 euros higher than on Monday, compared with 585.00 euros per ton.
The Italian index rose by 7.29 euros per tonne week-on-week, but by 35.42 euros per tonne on a monthly basis.
"The Italian market is responding very quickly, and I am not surprised that it is now focused on Northern Europe, as there are not enough import offers," said a source from Southern Europe.
The market for imported coils in Europe has been very calm because most of the foreign suppliers we offer HRC for delivery in the first quarter of 2026, and therefore the prices for these tonnages will depend on the EU CBAM.
The policy is still missing details, despite the fact that its implementation is scheduled for January 1, 2026.
The Italian market has traditionally been more