Europe: Stainless steel prices rebound on trade protection measures, CBAM cost spike expectations

• CBAM-related costs support higher domestic mill offers
• Asian imports remain competitive but buying pauses

Stainless steel prices in the European market have rebounded in recent weeks, supported by new trade protection measures and rising cost considerations linked to the Carbon Border Adjustment Mechanism (CBAM). Mills in Northern and Central Europe have raised cold-rolled coil prices by around EUR 100/t over Italian offers, largely due to higher inventories in Italy and Poland and tighter supply elsewhere.

European mills are operating below full capacity, which has limited availability and strengthened pricing power. Service centres have already received higher prices for February deliveries, while March offers are expected to move higher with extended lead times. Market participants noted that although order volumes have improved, the broader economic backdrop remains weak, suggesting the uptick is driven more by supply constraints and policy factors than a genuine demand recovery. Meanwhile, Asian imports remain competitive even after CBAM costs, but heightened uncertainty has prompted most buyers to pause fresh import bookings.