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| ArcelorMittal HRC |
EU Protective Measures and Import Restrictions Drive Price Increase
ArcelorMittal has raised its hot-rolled coil (HRC) price to €610 per ton for Q4 deliveries. This follows a prior increase to €590/t in late July. The hike responds to expected EU import restrictions, including new quotas and potential anti-dumping duties reaching 50%. These measures aim to protect European steel producers amid global oversupply and price pressure.
Market Trends and Carbon Border Adjustment Impact
The European HRC market experienced price declines of 2-6% in July due to weak demand and Asian oversupply. However, the new EU carbon border adjustment mechanism (CBAM) raises costs for high-carbon steel imports, making Asian steel less competitive. Consequently, import prices in Italy climbed from €470/t in mid-July to €507.5/t in early August, reflecting the growing impact of these policies.
Outlook: Demand Recovery and Regulatory Effects
Service centers began stockpiling steel at July’s end, signaling potential demand recovery in autumn. Germany’s trade deal with the US may further boost steel consumption. However, market enthusiasm remains cautious due to excess supply and tariff uncertainties. ArcelorMittal’s price increase attempts to balance these pressures while preparing for stricter EU protective policies starting January 2026.
ScrapInsight Commentary
ArcelorMittal’s price hike reflects tightening EU import policies and rising costs from the CBAM. These regulatory shifts strengthen Europe’s steel sector but risk near-term market volatility. Stakeholders should monitor quota developments and tariff impacts as the industry adjusts to evolving trade and environmental frameworks.
