Posted on 26 Nov 2025
The main buzz in the market last week was around the leaked CBAM benchmark values in the EU, which nevertheless raised more questions than they provided answers. The general direction of prices was up, with scrap and iron ore both rising on-week, while Brazilian pig iron was boosted by demand from Europe and US coil prices surged after mill hikes succeeded.
Turkish scrap prices rose unexpectedly on Friday after mills accelerated their purchases. A southern Turkish mill is heard to have bought US-origin HMS 1&2 80:20 for December shipment at $361/tonne cfr Turkey, up from the previous nine deals at $355.5/t from the same origin. As most market participants expected values to remain flat, the higher-priced deals surprised the market. Asia-origin billet offers at above $465/t cfr Turkey were meanwhile seeing no buyer interest, with Turkish mills’ buying targets at below $460/t cfr.
Brazilian pig iron export values recovered almost $15/t to $400-405/t fob. Domestic suppliers confirmed a growing appetite for material from the US and Europe, with demand from Italy and Germany heating up the market as EU mills sought alternatives to the soon-to-be-banned Russian pig iron. The general opinion was that, although these supplies are occasional, the Brazilian market is seeking new customers amid increased restrictions in North America.
In China, tensions resurfaced between China's state-backed ore purchasing group CMRG and Australian miner BHP, adding a touch of uncertainty to market sentiment. KORE 62% Fe rose over $1 on-week to $104.21/t cfr China on Friday. CMRG verbally instructed mills and major traders to suspend purchases of BHP's Jingbao Fines, mirroring a similar episode in early October. Market participants however said this reflects strategic posturing during long-term supply contract talks, rather than a fundamental shift in buying patterns.
Pricing for domestically produced hot rolled coil in the US strengthened further after domestic mills proved they can collect on their recent hike announcements. Spot prices for HRC jumped to a new range of $860-900/short ton, from $830-865/st a week earlier. Market participants reported that mill outages this autumn have apparently succeeded in pinching coil supply on the sport market. Buyers who were sceptical of the mill hike announcements in October and November are now facing higher costs to catch up with their inventory buys.
The European Commission’s long-awaited draft CBAM benchmark values were provided in a leaked document. For more information, read the Europe section. EU sources estimated that CBAM costs for material from relatively low-emission producers could range between €30-60/t, depending on the source. Large buyers were working closely with their third-country suppliers on how to report every element of their production process. CBAM parameters and calculation values remain unclear, and the list of accredited inspectors who will verify suppliers’ emissions has yet to be released. Buyers reported confusion and a reluctance to commit to new bookings.
ArcelorMittal said it was preparing to ramp up production at its facilities across Europe, anticipating the net change in demand due to the European Commission’s proposed new tariff-quota measure to come into force in 2026. The firm added it plans to meet demand promptly and maintain stability in the supply chain. “Of equal importance, this increase in production will also support European jobs, and create significant value for the European economy,” the firm noted in comments similar to those made by US steelmakers earlier in the year after President Donald Trump reintroduced tariffs.
Global crude steel output accelerated its drop in October, falling 5.9% on-year to 143.34 million tonnes, with Chinese production slumping heavily. US output surging by almost 10% could not prevent the decline, according to worldsteel data.
Finally, unions representing Acciaierie d’Italia (ADI) launched a 24-hour strike in protest over the lack of progress on the relaunch of the Taranto plant, with some warning the government intends to shut down the site next year. This followed the government’s decision to increase the number of workers on temporary layoff schemes to 6,000 until the end of February 2026.
Source:Kallanish
