European Steel Prices Rise as Energy Costs Escalating

European steelmakers are increasingly seeking price hikes for the first quarter of 2027, as tighter supply and fewer competing imports support their efforts. However, subdued demand, especially in Northern Europe, is limiting their ability to secure higher prices.

For first-quarter 2027 delivery, HRC offers now stand at EUR 790–800/ton, although conditions vary by region. Buyer resistance has led to modest price declines in Northern Europe, while scarce material in Italy has pushed recent deal prices up to EUR 750–760/ton EXW. Whether producers can achieve their higher targets ultimately hinges on end-user demand.

The European steel industry’s future production footprint may shift as energy conditions vary across regions. Industry discussions have also emphasized that transitioning to EAF and hydrogen-based production requires investment in facilities and access to affordable, low-emission energy. In addition to energy costs, financing decarbonisation remains a significant challenge to the sector’s competitiveness.

• EU quotas, import duties and CBAM measures are curbing import competition and supporting domestic producers.
• With demand still weak across Europe, the market remains caught between supply constraints that support prices and lacklustre demand, leaving it unclear whether higher prices can be sustained.
• Producers are unlikely to secure full acceptance of requested increases of EUR 100–150 per ton in annual contracts for 2027.
• Price targets in the coming period will depend on energy costs, import conditions and end-user demand.

Romania’s Steel Market Faces Prolonged Strain

Because Romania relies heavily on imports, its steel market is under greater pressure than the broader EU market, with subdued demand and economic hardship adding to the strain. Maritime transport has also been disrupted by the conflict in the Black Sea region, and freight charges for cargo bound for the Port of Constanța have climbed sharply.

Further risks in 2027 stem from CBAM costs not yet being fully reflected in prices, as well as political uncertainty, financing constraints, and a weak economy. Smaller importers are especially ill-prepared, and delays in verifying actual emissions are likely to push costs higher.

Exporters are expected to raise their prices, though Romanian buyers are likely to accept increases only if demand rebounds. For now, the near-term outlook for a recovery in Romania’s steel market remains weak.