[SMM Steel]

The EU flat steel market officially entered the "realization phase" of its price-hike cycle this week. Northwest European HRC stabilized at a high of 732 EUR/tonne EXW (852 USD/tonne EXW), while the Italian spot market bottomed out and rebounded post-summer holiday to 721 EUR/tonne EXW (840 USD/tonne EXW). Notably, HRC import CIF assessments (655–660 USD/tonne CIF Italy) recorded their first gain of the year. On the transaction front, mainstream Northern European mills finalized actual orders of approximately 25,000 tonnes at 730 EUR/tonne EXW (850 USD/tonne EXW), while maintaining a firm stance on Q4 forward offers. On the flat steel import side, Indian resources were rapidly hiked to 680–685 USD/tonne CFR following initial small-volume trades, while Southeast Asian Q4 shipping quotas were already sold out, effectively closing off low-cost alternative sourcing channels for European buyers. The long products segment extended its weak trend, with Italian domestic rebar prices holding flat at 695 EUR/tonne EXW (809 USD/tonne EXW). Additionally, forward cost uncertainties stemming from the advance implementation of CBAM have begun disrupting pricing for long-cycle engineering projects extending into 2027. In the semi-finished segment, EU slab imports reached a period high of 3.11 million tonnes in H1, with Brazilian origins surging to 900,000 tonnes leveraged by their low-emission advantage under CBAM. The primary short-term concern is that large steel service centers assess their September inventories as relatively ample; thus, the first post-holiday round of actual procurement will serve as the "litmus test" for this round of price hikes. Looking ahead to next week, whether mills can keep quotes firm while generating trading volume will determine the slope of September's trajectory.

[Steel Billet] Today, FOB export prices for square billets rose slightly by USD 4/t, with quotations at Jiangyin Port at USD 463–468/t. According to feedback, the recent basis between domestic and export markets for billet has turned favorable, and some traders have become more active in purchasing billets. However, overseas demand remains weak, and high-priced cargoes are difficult to transact. The market is mired in intense competition, with instances of low-price undercutting to secure orders.

The following table shows the ferrous and nonferrous metals movement on the SHFE and DCE on 28 Aug , 2026