European Steelmakers Push for Higher Prices Amid Market Uncertainty

European steel producers are testing the market’s willingness to accept price increases for steel products. A leading company has recently raised its hot rolled coil offers, seeking a 3.4% increase from the previous week’s prices for fourth-quarter delivery. This move comes as the industry navigates a complex environment of shifting market dynamics and looming regulatory changes.

Despite the price hikes, some market observers remain skeptical that buyers will readily accept the new offers. They point to the fact that recent import offers have been significantly lower, and the ongoing confusion surrounding the new Carbon Border Adjustment Mechanism (CBAM) has made buyers hesitant. The CBAM, set to take effect in 2026, aims to put a price on the carbon emissions of goods entering the EU, but a lack of clarity on its rules has created a sense of unease among importers and end-users alike. This uncertainty has made competitively priced imports less attractive due to fears of future charges.

In response to these market pressures, the European steel industry is actively lobbying for stronger protective measures. A major industry group has recommended that the European Commission cut steel import quotas by up to half before the CBAM is implemented. The proposal argues that such a move is necessary to help the domestic steel industry achieve sustainable utilization rates and protect against global overcapacity. This recommendation aligns with a broader action plan put forth by the European Commission earlier this year, which aims to replace current safeguards with more effective measures to protect the sector.