CBAM, precautionary measures that will affect EU expectations
The introduction of a new Carbon Boundary Protection Measure and Regulation Mechanism (CBAM) will have a positive impact on the European long products market. According to forecasts, imports of some types of products, in particular wire rods and fittings, will decrease sharply in the new year, which will support prices, two European sources in the field of long products production told Kallanish.
In 2026, the market will continue to grow thanks to several infrastructure projects funded by the European Pandemic Recovery Fund. However, the French buyer notes that the import structure varies significantly from country to country. While some countries, such as Poland and the Baltic States, are more dependent on imports due to their geographical location, others import limited amounts of rebar, but large amounts of wire rod, for which quotas already apply. In France and Italy, market competition remains mainly between European manufacturers.
Overall, prices for long products this month remain mostly stable compared to October, although persistently frequent but small volumes of orders continue to put pressure on sentiment. In France, prices decreased by about 10 euros per ton (11.52 US dollars per ton), while similar adjustments were observed in other countries, depending on the product.
Demand for long products shows no signs of recovery, while demand for profiles, rebars and wire rods remains limited. Prices for bars in Italy and Germany remain high and amount to about 650-660 euros per ton, including additional sizes.
.Sources say that the price of Spanish raw materials in Italy is about 20 euros per ton lower, and in the southern regions, according to rumors, the base price for cheaper Turkish merchant bars is approaching 200 euros per ton. In France, prices for rolled products have fallen under the pressure of cheaper Spanish raw materials and are now 20-30 euros per ton lower than in the Italian domestic market.
Demand for long products remains largely stable, steel mill sources and agents confirm. After a slow October, a moderate increase in consumption is expected by the middle or end of November ahead of the end of the year. In Italy and France, the price of sections of the first category averages 710-730 euros per ton from the factory, while in Germany, prices for sections of the S235 brand range from 740-750 euros per ton with delivery. One source notes that Germany is currently absorbing significantly smaller volumes of imports from other European producers, including Italy.
Prices for fittings supplied by domestic plants in Western Europe, including an average size surcharge of 265 euros