EMM Has Value but No Market; Market Mainly Wait-and-See [SMM EMM Daily Review]

The European Parliament voted 464-50 on Sept 15 to extend CBAM to downstream steel and aluminium goods such as fasteners, wire and springs, targeting carbon leakage. Eurometal president Alexander M. Julius called the vote a step forward but said scope is incomplete, implementation too slow and carbon-cost-bearing EU exporters unsupported; CBAM alone cannot offset higher steel prices and regulatory burdens. The federation wants all steel- and aluminium-intensive products covered faster, a call echoed by Germany's Wirtschaftsvereinigung Stahl. Eurofer backed the motion but sought stronger anti-circumvention rules; director general Axel Eggert said mills are investing billions of USD in low-carbon steel and need a level playing field. CBAM and the revised safeguard lifted 2026 prices: domestic HRC at 788 USD/tonne ex-works Ruhr and 783 USD/tonne in Italy, up 119 USD/tonne; imported HRC at 632 USD/tonne CIF Antwerp and 626 USD/tonne in Southern Europe, up 92 USD/tonne.

China Steel Corporation (CSC), Taiwan's largest carbon steel producer, is expected to raise November domestic steel plate prices, driven by surging Asian hot-rolled coil (HRC) offers that have also lifted Taiwan's local HRC spot prices. CSC normally announces next-month prices late in each month, and its list is a benchmark for downstream shipbuilding, machinery and steel structure users. The expected hike reflects firmer regional costs as major Asian mills raised export offers and Chinese quotations stayed firm, narrowing the gap between imported and local material. Regional trade remedies add to the bullish mood: Taiwan has finalised a positive dumping determination on electrical steel from South Korea and China, while Indonesia opened an anti-dumping probe into China-origin galvanised steel. No price figure was disclosed.

Italian mills' imported scrap contracts with European suppliers are flat this month, tracking wider European stability. Long product mill demand is solid, with some buyers seeking extra volumes after the August break; mills prefer imports to avoid over-pressuring the fragmented domestic market. Rail works between Germany, Italy and eastern Europe delay deliveries; a German source cites wagon shortages, while the Tarvisio corridor near Austria shut for a month from 20 August. An eastern European seller sold only small tonnages in August-September; many expect prices to rise moderately next month, following Turkey, with demand hinging on finished steel. E40 shredded delivered at 386.6-392.3 USD/tonne from western Europe, about 381 USD/tonne from eastern Europe; E3 at 363.6-369.4 USD/tonne to northern Italian mills; E1 at 351.9-363.5 and E8 mixed at about 375 USD/tonne.