European HRC markets are calm ahead of the holiday season
On Friday, December 19, the European domestic spot market for hot-rolled coils was quiet, as buyers replenished their stocks the previous week and are now gradually switching to a holiday mode at the end of the year, sources said.
In Northern Europe, recent orders were placed at a price of 620-625 euros (727.30-733.16 US dollars) per ton from the factory, while offers for February and March deliveries ranged from 640-670 euros per ton from the factory, depending on the manufacturer, they added.
The daily price index for hot-rolled steel in Fastmarkets in the domestic market, excluding shipments to Northern Europe, amounted to 623.75 euros (731.70 US dollars) per ton on December 19, unchanged from day to day.
The indicator increased by 2.08 euros per ton week-on-week and by 10.24 euros per ton on a monthly basis.
The optimistic mood at enterprises is mainly related to the upcoming introduction of the Carbon Dioxide Emissions Control Mechanism (CBAM) from January 1, 2026.
The CBAM rules are expected to have a significant impact on import prices due to the recent increase in the final default emission values compared to the draft version adopted in November.
Meanwhile, sources reported some progress in negotiations on long-term contracts between the plants and the automotive sector.
In the first half of 2026, several contracts were signed with price increases of an average of 30-50 euros per ton year-on-year to about 700 euros per ton, Fastmarkets sources said.
"The automotive industry has been fighting to lower prices[for long-term contracts], but the balance of power in the market has shifted in favor of manufacturers – CBAM has limited import opportunities, and new regulations encourage the use of environmentally friendly steel," said a German buyer.
The domestic HRC market in Italy was also quiet on December 19th.
Proposals for the supply of HRC in February were heard at a price of 610-640 euros per ton from the manufacturer, depending on the supplier, while reasonable prices were estimated at 610-620 euros per ton from the manufacturer.
"Yesterday I met with a customer from Italy[who], who told me that demand is very, very, very low," a source at the service center told Fastmarkets. "The day market is completely dead," he said[and]. He believes that the situation will not improve in the first quarter of 2026."
The daily price index for Fastmarkets hot-rolled steel, domestic, exw Italy, calculated on Friday, remained unchanged at 613.75 euros per ton.
.The indicator increased by 2.5 euros per ton week-on-week and by 12.08 euros per ton month-on-month.
Author: Vlada Novokreschenova
Fastmarkets.com