Steelmakers in Europe See Jump in Hot Rolled Coil Prices as People Return from Summer Holidays
Steelmakers in Europe are seeing a large jump in hot rolled coil prices as people start to return to work from their summer holidays, which could have significant implications for the steel industry. “Stocks are low,” one source said about inventories for the flat rolled product held by both stockists and end-users.
Mills are currently offering €590-600 ($690-700) per metric tonne EXW for production and delivery in autumn, up from the €540-550 ($630-640) sought in the last week of August. Another source stated that steelmakers are unlikely to give much leeway against that offer, especially after a summer of lower prices. “Mills will likely get closer to the price that they are seeking,” that source added.
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Input Costs and the CBAM
Meanwhile, input costs are also putting upward pressure on prices. According to data from Trading Economics, benchmark 62% Fe iron ore was $104.93 per metric tonne CFR Tianjin, up over 12% from its July 1 low of $93.41.
The tentative January 1, 2026, enactment of the Carbon Border Adjustment Mechanism (CBAM), plus concerns over possible retroactive tariffs due to a current lack of clarity over the rules, have created a reluctance to transact any import deals. This, in turn, has pushed up prices on the domestic market.
In mid-August, Indonesian mills were seeking less than €500 ($585) per metric tonne CFR European ports, though a projected delivery time of later than 2026 stifled interest in it. However, sources told MetalMiner that the European Commission is now due to publish CBAM guidelines in or about Q4.
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European Commission Looking to Streamline CBAM Implementation
In late August, the EC began another consultation on methodology rules to calculate carbon emissions embedded in goods for the CBAM, announcing a call to gather the opinions of all interested parties, with a deadline of September 25.
“This initiative is in line with the Commission’s efforts to simplify the CBAM Regulation and make it more cost-efficient,” the EC said in an August 28 statement. “The Commission also aims to provide clarity and legal certainty for businesses, support Member States in their implementation efforts and improve the overall effectiveness of the CBAM.” The notice stated that targets of the consultation include businesses in the EU as well as stakeholders in countries outside the bloc that face CBAM impacts.
Steel Industry, Others Bracing for January 1
Authorities in EU-member states responsible for implementation, as well as third-country authorities, have also received invitations to comment on the forthcoming CBAM. This includes those in the latter group that have either adopted or are developing carbon pricing instruments, along with academic institutions.
One source noted that the latest consultation follows one that took place in June. “This is an ongoing process,” they told MetalMiner, adding that there were also discussions on the pricing in Europe’s spring. “The plusses and minuses of the plan are a constant process.”
The European Union introduced the CBAM in 2023 as a way of dealing with carbon leakage. For example, if an industry seeks to transfer production to a third country with less stringent constraints on carbon emissions, the CBAM would ensure they face the same cost as under the Emissions Trading Scheme. Besides the iron and steel sector, the CBAM also applies to aluminum, fertilizers, electricity and hydrogen.
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