The EU HRC market is stable; New offers are emerging, taken into account by DDP CBAM
Demand for imported hot-rolled steel remained unchanged in the week to Wednesday, November 26, while market appetite for the roll is still restrained amid prolonged regulatory uncertainty, Fastmarkets sources said.
The market is still waiting for more clarity on the potential costs associated with the EU Carbon Boundary Regulation Mechanism (CBAM) and how this may affect imports, the sources said.
According to the distributor, there is "no demand" in the market now, and new changes can be expected from next year, when CBAM and other trade rules come into force.
Meanwhile, a source among traders said that market participants at the moment "do not want to take risks," adding that they will "wait to see" what changes in the market.
Fastmarkets' weekly estimate of imports of hot-rolled steel, CFR's main port in Southern Europe, was 475-520 euros (551-603 USD) per ton on Wednesday, unchanged week after week.
HRC's offers from Asia for January delivery were about 475-500 euros per ton of CFR, excluding CBAM.
Another offer was about 475-520 euros per ton of CFR, excluding CBAM costs.
Fastmarkets' weekly estimate of import prices for hot-rolled rolled steel, CFR's main port in Northern Europe, was 480-520 euros per ton on Wednesday, also unchanged every week.
The supply from Indonesia was reported to be approximately 490-495 euros per ton of CFR without the cost of CBAM.
Buyers estimated the achievable prices at 480-520 euros per ton of CFR without the cost of CBAM.
Given the market's need for clarity on import costs related to CBAM, Fastmarkets on Wednesday launched a DDP import steel price estimate for flat rolled steel.
The introduction of new DDP estimates for imported flat rolled products in Europe is intended to give market participants a clearer understanding of how they navigate the changing trading landscape created by CBAM.
By accounting for the impact of CBAM-related costs, these estimates aim to reflect how the spot market is likely to function from 2026 onwards, reflecting the underlying dynamics of supply and demand.
As a result, the cost of a CBAM certificate may not always be fully accounted for or reflected in DDP spot transactions.
Accordingly, the published prices do not include any explicit estimated cost of the CBAM certificate.
Such costs may vary significantly depending on the data provided due to differences in brand and origin, customs clearance time, and the applicable cost of CBAM at the moment, as well as the proportion of carbon costs already covered in the country of origin.
Fastmarkets' weekly estimate of import prices for hot-rolled steel coils, ddp Southern Europe, on Wednesday was 580-620 euros per ton.
It is reported that the deal with