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European Steel Market Report: Positive Outlook Amid Rising Prices Linked to CBAM

The European steel market is witnessing a robust uptick in sentiment fueled by rising prices linked to the Carbon Border Adjustment Mechanism (CBAM). Notably, the articles “Italian heavy plate rises on CBAM slab costs“ and “The cost of Italian heavy rolled products has increased amid rising prices for CBAM plates“ highlight that despite subdued market activity following the holiday season, Italian mills report satisfactory order volumes and rising prices due to increased import costs associated with CBAM. This demand contrasts sharply with the situation in the northwestern European market, where growth appears stagnant.

Bar chart and satellite map of steel production activity in Europe

The activity levels of the ArcelorMittal Dunkerque steel plant have shown significant growth, peaking at 69.0% in January 2026, aligning with heightened demand for rolled steel products amid rising prices. This aligns with the observed trends in the articles, particularly those discussing increased demand in Italy. Conversely, the Outokumpu Tornio steel plant has fluctuated close to the lower end of activity, with a drop to 27.0% in October but reported stability thereafter, indicating local constraints that remain unlinked to recent news coverage. The Metinvest Zaporizhstal steel plant experienced a recovery to 52.0% in February, but previous instability limits its immediate relevance to current market dynamics surrounding rising prices in Italy.

The rising prices as reported indicate potential supply disruptions; particularly, the Italian market may face heightened protective costs that could indirectly impact sourcing strategies across Europe. Buyers may find it increasingly difficult to source competitively priced steel, and proactive procurement actions are recommended.

Recommendations for Steel Buyers:

  1. Prioritize Sourcing from Italy Early: Engage suppliers for early contracts to mitigate future price increases while the market remains in flux.

  2. Monitor CBAM’s Impact: Keep abreast of the evolving regulations and pricing of slabs, as these changes might affect not just prices but also availability from both northern and southern sources.

  3. Consider Long-term Contracts: Given the upward pricing trend, steel buyers should explore securing long-term agreements to hedge against ongoing volatility.

These actions will ensure a strategically advantageous position for procurement professionals in a burgeoning market characterized by rising costs and increasing demand.