Business activity in the domestic hot-rolled roll market in the European Union remained moderate this week, although there was a slight increase in prices in some countries. The main reason was production failures at a number of enterprises, primarily in Italy and Germany.
The overall inventory level of HRC in Europe is still considered average or elevated. At the same time, price expectations remain stable against the background of limited supply and import-related risks. Activity in the foreign market has decreased: some participants believe that some quotas have already been selected or almost exhausted for the first quarter of 2027, while others are in no hurry to purchase due to the uncertainty around the CBAM mechanism that they may face in the second half of the year.
In Italy, according to sources, disruptions at the Arvedi plant led to an increase in domestic prices for HRC by 20-30 euros per ton, to 760-780 euros per ton. The cost of delivery is estimated at 10-25 euros per ton, depending on the region. In Spain, real prices increased by 5-10 euros per ton and amounted to 740-745 euros per ton on factory terms. In the northern part of the EU, quotations are at the level of 740-760 euros per ton and in some cases reach 770 euros per ton from the factory.
In the Benelux countries, one of the manufacturers offered HRC at 725-730 euros per ton on factory terms, but this level has not yet become widespread in Europe. In Eastern Europe, some producers raised their offers by 20-30 euros per ton, to 760 euros per ton. Others kept quotes at the level of 765-775 euros per ton, and with surcharges — up to 790 euros per ton.
In the imported HRC market, duty-free offers from Turkey were received at 625-635 euros per ton of CFR, which is 5-10 euros higher than a week earlier. Offers from India were reported at 650-670 euros per ton CFR, whereas previously they were at the level of 715-725 dollars per ton CFR. The European trader noted:
"Both India and Turkey seem to have already sold significant amounts of HRC for the first quarter of 2027. They will have to fight for quotas, and this will create chaos. That's why we decided not to import HRC."
Most of the import offers are still formed on DDP terms, as buyers strive to minimize their risks. Japan and Taiwan offer the material at 770 euros per ton, South Korea — at 790 euros per ton. At the same time, real transactions, according to market estimates, remain closer to 730-750 euros per ton.
1 euro = 1.12 dollars.