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Europe’s steel market shows balanced movement at the beginning of november

During the first week of November, the European steel market exhibited a cautious yet modestly upward trend. Following a brief buying surge at the end of October, buyers have reverted to a more reserved stance. Despite limited overall market activity, weak import flows, persistent cost pressures, and a desire to improve profit margins have enabled producers to sustain prices and push them slightly higher.

Europe’s steel market shows balanced movement at the beginning of november

Approximately 100,000 tons of hot-rolled coil (HRC) were reserved in Europe at levels between 565 and 575 USD/ton during early November. The majority of these sales were attributed to JSW, JSPL, and ArcelorMittal Nippon Steel, though specific customer details remain undisclosed. Additionally, agreements for cold-rolled coil (CRC) deliveries scheduled for late December through January were reported at around 730 USD/ton. These developments reflect limited but steady import interest, while overall volumes continue to be subdued.

Domestic HRC prices across Europe have followed a mild upward trajectory. Prices stabilized at EXW levels of 595–600 €/ton in Italy, 600–610 €/ton in Germany, and 590–610 €/ton in Spain, marking an average increase of 5–10 €/ton compared to the previous week. This rise has been influenced by reduced imports from Asia and ongoing production constraints at certain plants. Producers remain focused on maintaining price discipline by restricting sales ahead of the year-end.

The long products segment has remained relatively stable. Offers from Spanish and Italian producers in Southern Europe have exerted downward pressure on construction rebar and profile prices compared to northern regions. Nonetheless, generally weak demand has led producers to maintain existing price levels.

Market consensus suggests that, should import levels persist at their current rate, European Union producers will face limited scope for price increases. Participants regard import quotas as likely having a more significant impact on the market than the CBAM regulations.

Overall, as of early November, the European steel market is navigating a balanced phase characterized by low demand, constrained imports, and elevated costs. While prices exhibit a sideways to slightly upward trend, buyers continue to postpone inventory replenishment decisions, and producers pursue strategies aimed at preserving current price levels amid tightening supply conditions.

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