European HRC prices flat in quiet market
Sources said the increase in trading activity was not due to improved demand or an economic upturn, but due to expectations of longer lead times at some suppliers.
“Some steelmakers will extend their winter break, which will lead to longer lead times [for HRC],” a buyer in the Benelux region of Northern Europe told Fastmarkets.
Offers for HRC with lead times in the first quarter 2025 were heard at €570-600 ($598-630) per tonne ex-works in Northern Europe on Friday, but sources said there was “no information about contracts starting with a ‘6’ so far.”
One supplier in the Benelux region reported hearing of deals for HRC being done at €570-580 per tonne ex-works.
A supplier in Germany, meanwhile, said deals had been done at €560-570 per tonne ex-works.
Buyer estimates of the tradable level in Northern Europe were heard at €550-580 per tonne ex-works on Friday.
“The market mood is rather depressed, especially in Germany, where many companies are announcing staff lay-offs,” a source in Germany said.
And there was said to be fierce downstream competition between steel service centers (SSCs) because of high inventories and cashflow needs.
“There is a battle for orders between SSCs,” a third buyer said.
Fastmarkets calculated its daily steel hot-rolled coil index, domestic, exw Northern Europe, at €562.50 per tonne on December 13, down by €0.63 per tonne from €563.13 per tonne on December 12.
The index was down by €1.67 per tonne week on week but up by €4.17 per tonne month on month.
No major progress was reported regarding the long-term contracts negotiations between steel mills and automakers
Buyers were hoping to achieve a discount for first-half and full-year 2025 contracts, with several original equipment manufacturers (OEMs) reporting a targeted decline of €100-150 per tonne.
Mills were hoping for a “double digit” discount, Fastmarkets understands.
“Mills have to keep in mind that the price gap between spot and contract prices is too wide right now,” a fourth buyer told Fastmarkets.
Contracts for the second half of 2024 were done at €730-750 per tonne, sources said.
“We are in the middle of negotiations with the OEMs. [Contract] prices for HRC will be lower [than] 2024, but not by as much as initially expected,” a mill source said.
“Negotiations [with the automotive sector] are very difficult and might extend into January,” a mill source said.
In Southern Europe, meanwhile, Fastmarkets calculated its daily steel hot-rolled coil index, domestic, exw Italy, at €561.50 per tonne on Friday, down by €0.38 per tonne from €561.88 per tonne on the previous day.
The Italian index was up by €1.08 per tonne week on week and up by €7.50 per tonne month on month.
One local steelmaker in Italy was aiming for €600-640 per tonne delivered (€590-630 per tonne ex-works) for February-March delivery coil, sources said,
depending on the tonnage and client.
One integrated mill in Italy raised its offer prices for first-quarter delivery coil to €570 per tonne ex-works, compared with €550 per tonne ex-works at the start of December,
Buyers, meanwhile estimated the tradable base price for HRC at €570-580 per tonne delivered (€560-570 per tonne ex-works).
The market for imported coil in Europe remained quiet in the week to Friday due persistent trade restrictions, long lead times and uncompetitive prices compared with European suppliers.
“We expect reliance on European material will only increase in the upcoming months,” a buyer in Italy said.
Turkish suppliers were offering HRC at €550 per tonne CFR, duty paid, for tonnages of 10,000 tonnes or more, sources said.
And offers of HRC for February shipment from Southeast Asia to Italy came in at €580-600 per tonne CFR in the seven days to Friday.
Polish rebar prices increase on local mills’ resolve to maintain higher offers
Trying to cover the growing production costs, especially the higher electricity prices, Polish mills came up last week with higher offers, reaching in some cases 2,650 zloty ($651) per tonne CPT.
During the latest assessment period, all major rebar producers in Poland were heard offering rebar for December/January production at 2,650 zloty per tonne CPT, industry sources told Fastmarkets.
“Polish mills sold good volumes at the lower price levels several weeks ago, and now they are not interested in giving any significant discounts,” a distributor source told Fastmarkets.
The distributor source added that some cut-and-bend companies had tried to close some contracts with the Polish producers at the old prices, asking for 2,550 zloty per tonne CPT, but this level had not been accepted.
A producer source reported some sales of small volumes at 2,600-2,610 zloty per tonne CPT, adding that they only partially succeeded in their attempt to raise prices.
Polish buyers’ estimations for the workable market level were at 2,580-2,620 zloty per tonne CPT, Fastmarkets understands.
According to one buyer source, demand remained very low, and, therefore, lower price levels at 2,500 zloty per tonne CPT were still available in the market. But this view was not largely shared by other market participants, and Fastmarkets excluded this estimation from its final assessment.
Reflecting the information about realized sales and industry sources’ estimations, Fastmarkets’ weekly price assessment for steel reinforcing bar (rebar) domestic, cpt Poland was 2,580-2,610 zloty per tonne on Friday, increasing by 30-80 zloty per tonne from 2,500-2,580 zloty per tonne on December 6.
“Polish mills want to show better financial results for the last quarter of the year and demonstrate to the management boards that they are not selling below the cost line,” a second distributor source told Fastmarkets.
But market participants’ expectations about the future remained mixed.
According to the second distributor, prices would probably decrease in the second half of January, but not to the levels available in the market a few weeks ago. The source expected that the Polish rebar prices would probably stabilize at 2,580 zloty per tonne CPT.
The first distributor source told Fastmarkets that the prices would probably remain elevated in January and February with high production costs supporting this trend.
The first distributor added that they expect limited scrap availability in the domestic market during the first months of next year.
Local scrap companies would take long production breaks starting from December to the first weeks of January, which would have an effect on the scrap supply in Poland.
“Besides, the plate producer Huta Czestochowa, which will resume operations at the beginning of the next year, is currently interested in buying more scrap,” the source added.
Insolvent Polish steel slab and plate producer Huta Czestochowa has been given a lifeline by state-owned industrial group Weglokoks, with the aim of resuming steelmaking operations at the southern Poland facility in January 2025, Fastmarkets reported.
A second steel producer in Poland was also planning to buy bigger volumes of scrap, sources said.
The limited availability would probably push domestic scrap prices up and this would also affect Polish rebar prices, according to the first distributor.
In terms of imports, German rebar was heard offered to Poland at €620 ($651) per tonne delivered.
European steel industry faces critical turning point in 2025
The steel industry is poised to move up in the political agenda of various European nations in 2025 as governments begin addressing production and job cuts.
European countries must develop concrete solutions to transition the industry toward low-carbon production; failure to do so could result in a diminished manufacturing sector and a precarious political landscape.
The market has deteriorated significantly in recent months, with the European steel sector facing a lull characterized by minimal trading activity and falling prices.
“The European steel industry has never been so challenged, caught between decarbonization costs and the fallout from severe overcapacity, particularly from China, which has led to a surge in low-cost, heavily subsidized, and CO2-intensive imports,” Thyssenkrupp told S&P Global Commodity Insights.
Since the financial crisis, European steel production has declined by nearly one-third and employment has dropped by 25%.
Demand has not rebounded to pre-COVID-19 levels, and combined with high energy costs and rising imports, steelmakers’ profit margins have shrunk, threatening their viability and capacity for reinvestment.
EUROFER highlighted that steel production in the EU has sharply declined since 2018 to 126 million mt in 2023. Imports now account for 27% of the EU market, further undermining domestic production, while capacity utilization has dropped to a concerning 60%.
Adolfo Aiello, deputy director general of EUROFER for Climate and Energy, remarked that the challenge has shifted from securing funding for low-carbon transformation to operationalizing projects amid high energy costs and ineffective trade safeguards.
“The conditions when many low-carbon projects were designed have changed dramatically, with geopolitical tensions, continued increase of excess capacities and soaring energy prices creating a challenging environment,” he said.
Recent announcements from European steelmakers indicate a postponement of investments in low-carbon steel projects due to tough market conditions. The economic slowdown, particularly in the automotive and construction sectors, has hurt demand for decarbonized steel products.
In total, around 60 low-carbon steel projects are underway in the EU, but their growth will depend largely on the availability of affordable renewable energy for electric-arc furnaces and green hydrogen production.
Companies like Stegra, Hydnum, and Blastr Green Steel AS are planning to build new greenfield DRI-EAF steel mills in Sweden, Spain and Finland. Nordic-based mills are at an advantage thanks to their proximity to DR-grade iron ore operations, green hydrogen and later production starts and in relative smaller tonnages.
For companies already established that are working to change their route, production is more complicated as they have to deal with a gloomy market and address productions cuts, job losses and low margins.
ArcelorMittal, Europe’s largest steelmaker, has delayed final investment decisions on its DRI-EAF projects in several countries and on its 2030 carbon reduction targets.
“We need an effective carbon border adjustment mechanism and stronger trade defense measures to enhance our business case,” an ArcelorMittal spokesperson said. “We await details on the European Commission’s Steel and Metals Action Plan, as these multi-billion-dollar investments will shape our future.”
Thyssenkrupp reaffirmed its commitment to green transformation and climate-neutral steel production but emphasized that investment decisions are contingent on economic conditions.
“The economic and political conditions that need to be taken into account do not relate to the continued operation of the two blast furnaces 1 and 2, but to the second transformation step,” thyssenkrupp said. “This depends on the market conditions prevailing at that time, our customers’ requirements for a CO2-reduced product and the funding conditions for a further technological step to replace the blast furnace technology.
“What is clear is that our steel production should be carbon neutral by 2045 at the latest,” it said. “After the decommissioning of blast furnaces 8 and 9, another blast furnace is the next to be shut down.”
Kerstin Maria Rippel, CEO of the German Steel Association, expressed concern over the industry’s survival amid rising energy costs and “unfair” competition from China.
“To navigate this crisis, we need coherent industrial policies from both Berlin and Brussels that ensure a reliable long-term perspective,” she said.
Looking ahead, establishing leading markets for CO2-reduced products is crucial for both German and European competitiveness. Thyssenkrupp and other steelmakers have called on the European Commission to deliver a robust steel action plan.
The EU must also revise rules that make hydrogen production in Europe more expensive as part of the Clean Industrial Deal.
“Germany’s hydrogen strategy is lagging, with only 3% of announced electrolysis projects reaching final investment decisions,” Rippel said, highlighting the slow progress in developing a hydrogen backbone and the unclear financing of the grid.
Although with all the issues underlined there are expectations for the low carbon market to pick up.
“Northern EU HRC prices are expected to rise over the next decade due to rising carbon costs and regulatory pressure in the EU, which are pushing steelmakers to adopt lower carbon yet higher cost production methods”, Evan Millard, S&P Commodity Insights’ Metals and Mining research analyst.
As a consequence, in May 2023, Commodity Insights launched the first ever daily carbon-accounted steel premium assessment, reflecting the differential for HRC sales with total accounted carbon emissions of 2.1 mt of CO2 or less for every metric ton of steel produced, and weekly price assessments for European carbon-accounted rebar and carbon-accounted medium sections were launched Sept. 11, 2024, the first carbon-accounted assessments for long steel.
EU HRC prices hold as the industry prepares for holiday production stops
European hot-rolled coil prices remained largely stable on Dec. 13 as the European flat steel industry prepares for holiday production stops to take place, according to sources.
“More mills are preparing to shut production for one to two weeks longer than usual production stops,” a Germany-based service center source said.
There has been a slight increase in demand for European mills as interest in imports has fallen due to the risk of antidumping investigations, quotas, and long lead times. “Imports carry longer lead times and higher than products from domestic mills,” said the source.
“Why buy from imports when they are at the same price level as domestic mills?” questioned the source. Demand for European flat steel products has risen slightly on supply-side factors, including a reduction in capacity by domestic mills in recent weeks, according to sources.
European flat steel price movements over the past few months have changed with “the introduction of the Chinese stimulus package, political decisions to improve the European economy, and lower European Central Bank interest rates designed to stimulate the economy,” said a Germany-based service center source.
Platts assessed Northwest European HRC at Eur560/mt ex-works Ruhr, stable on the day.
Platts assessed Southern European HRC at Eur555/mt EXW Italy, down Eur5 on the day.
Platts assessed imported HRC in Northwest Europe at Eur540/mt CIF Antwerp, stable on the day.
Meanwhile, Platts assessed imported HRC in South Europe at Eur540/mt CIF Italy, also stable on the day.
Marcegaglia accelerates Italian plants’ decarbonisation
Italian re-roller and steelmaker Marcegaglia is set to expedite the decarbonisation process at its facilities located in northern Italy, specifically in Ravenna, Gazoldo degli Ippoliti, and San Giorgio di Nogaro.
The firm has secured €100 million ($104.7m) from the European Investment Bank (EIB) to fund a range of initiatives focused on energy efficiency, innovation, and automation, with completion anticipated by 2028, Kallanish learns from the company.
The EIB grant is included in the group’s €170m decarbonisation strategy and aims to enhance the digitalisation and automation of logistics at Ravenna and Gazoldo degli Ippoliti. Marcegaglia plans to decarbonise the galvanising line in Ravenna and to advance the development of innovative, low-carbon, and energy-efficient technologies for electrical steels.
Funding will also be allocated for research, development, and innovation initiatives, especially those related to production processes at the three sites.
“The financing announced today will help Marcegaglia embark on a transformational journey, enabling the group to adopt more sustainable industrial processes and cutting-edge technologies to improve its environmental footprint, increase safety at work and reduce costs … For projects such as these, the EIB can offer higher initial disbursements and longer maturities to make loans even more attractive to the energy sector, and also increase the co-financing ceiling to 75%,” the firm says in a note.
Antonio and Emma Marcegaglia assert these projects will contribute to a further reduction in the company’s environmental impact while enhancing the technology employed. The EIB financing will cover over 50% of the total project expenditure.
In June, Marcegaglia took over Ascometal’s Fos-sur-Mer in France. The plant, renamed Marcegaglia Fos-sur-Mer, will produce hot rolled coil. The group will retain the electric arc furnace-based unit’s entire workforce and will invest about €600 million in its revamping.
Natalia Capra France
Trafilix invests in high-speed drawing machine
Trafilix, part of steel processor Lucefin Group, is investing in its facility located in Brescia, Italy. The company installed a new high-speed chain-track drawing machine built by local equipment maker Danieli Centro Maskin, designed for the production of carbon steel profiles.
With a pulling capacity of 5 tonnes, the equipment is now operational and capable of producing round, square, and hexagonal solid bars derived from wire rod. The chain-tracks deliver high-quality surfaces, achieving high drawing speeds of up to 200 metres/minute with ferrous materials, while ensuring efficiency and precise process control, Danieli notes.
The equipment was produced at Danieli headquarters located in Buttrio, Italy.
“This new unit complies with Industry 4.0 protocols and is ready to be integrated with the latest generation of Danieli digital systems (D-CMS – Danieli Condition Monitoring System) at any time, to detect and prevent unexpected outages and significantly increase plant efficiency,” Danieli says in a note sen to Kallanish.
Trafilix is equipped with six combined drawing machines, five straightening and reeling machines, and five straightening machines specifically designed for square and flat bars provided by Danieli. It produces cold-drawn, ground and peeled steels in a wide range of sections and sizes including flats, rounds, squares, hexagons and special profiles.
Natalia Capra France
Stalprofil revenue drops, foresees further import pressure
Stalprofil says EU steel imports from the Far East and Turkey, despite safeguard measures, are likely to continue depressing steel prices in the bloc, after the Polish distributor saw third-quarter revenue fall 11% on-year, Kallanish notes.
Revenue came in at PLN 355.6 million ($87.6m). It fell despite shipments in Q3 rising 14% on-year, the firm says without providing tonnage. Net income however rose 76% to PLN 3.7m, thanks to lower costs and taxes, and better pipeline infrastructure segment margin.
The steel demand rebound anticipated in Q3 did not materialise, while weak activity among steel consumer sectors depressed prices further, Stalprofil notes. This led to further downward revisions for EU consumption forecasts.
In the nine months through September, Stalprofil’s revenue fell 10% on-year to PLN 1.09 billion but net profit rose 10% to PLN 16.1m, with shipments rising 16%.
Adam Smith Poland
Andritz to modernize voestalpine’s hot-dip galvanizing line in Linz
Andritz has received an order from voestalpine to modernise the electrical and automation systems of a hot-dip galvanizing line at the steel mill in Linz, Austria.
The processing line has been continuously modernised since it began operations in 1973. Over the years, numerous rebuilds and upgrades have resulted in the use of a variety of electrical and automation systems, Kallanish understands.
The technology supplier says it will replace this variety with a unified, consistent, and user-friendly electrical and automation system that supports efficient operation. To minimise the impact on production, it will implement the modernisation in several stages, with completion scheduled for the end of 2028.
The order underscores the long-standing cooperation between the two Austrian groups, Andritz notes.
Christian Koehl Germany
UK, Taiwan, Serbia underutilise EU tinplate quota
China and the “other countries” category have significantly utilised their EU tariff-rate quota (TRQ) tin mill products allocation for 1 October 2024 to 31 December 2024, Kallanish notes from the EU customs portal.
China’s 112,139-tonne quota, the largest among all countries, is practically fully utilised, with a balance of only 522 tonnes still available.
The countries subject to safeguard measures used up their entire 38,227t allocation for Q4 already by 26 November, and have no available quota.
South Korea has only 1,108t available for tin mill products in Q4.
The United Kingdom has the largest remaining balance, with 43,606t available, representing 71% of its total TRQ allocation for Q4.
Taiwan has 9,378t still available, representing 56% of its total Q4 allocation.
Serbia has 8,215t of tin mill product allocation, or 33%, still available for Q4.
| Origin | Quota 01.10.24-31.12.24 |
Transferred | Total | Balance | Awaiting allocation | Avaliable | Available TRQ % |
| China | 112,139 | 3,407 | 115,546 | 945 | 423 | 522 | 0 |
| UK | 40,903 | 20,103 | 61,006 | 44,166 | 560 | 43,606 | 71 |
| Serbia | 22,509 | 2,257 | 24,767 | 8,605 | 390 | 8,215 | 33 |
| South Korea | 16,282 | 1,421 | 17,703 | 1,108 | – | 1,108 | 6 |
| Taiwan | 13,538 | 3,204 | 16,741 | 9,378 | – | 9,378 | 56 |
| Countries subject to safeguard measures |
37,515 | – | 38,227 | – | – | – | – |
Source: EU TARIC, as of 10 December. Calculated by Kallanish
Elina Virchenko UAE
ArcelorMittal Poland appoints Koszuta chairman
ArcelorMittal Poland (AMP) has appointed chief executive Wojciech Koszuta as chairman of the board, replacing long-standing chairman Sanjay Samaddar who becomes supervisory board chairman.
Samaddar will continue in his role as country head Poland and ceo of ArcelorMittal Europe – Long Products.
“I am exceptionally privileged to have been associated with ArcelorMittal Poland for 20 glorious years, in various roles as CEO and chairman of the Board of Directors. The 20 years jubilee, which we celebrated this year was a perfect opportunity for summing up these two decades, during which we have tried to play a leading role in the development of the steel industry in Poland – despite crises and challenging market situations,” Samaddar says.
Koszuta has been with AMP since 2000, for 18 months as ceo.
At the European Economic Congress in Katowice in May, he highlighted the firm’s recent investments in its BF-based production route but conceded that decarbonisation will influence its production process in the medium term (see Kallanish passim).
AMP is building a natural gas-based hydrogen plant at its Krakow re-rolling site to feed the two galvanizing lines at the location. The PLN 100 million ($24.2m) plant, being set up by Linde, will see hydrogen production begin at the end of 2026. Its flagship Dabrowa Gornicza steelworks, which supplies Krakow with slab, will soon need to choose whether to transform to EAF steelmaking or prolong BF-based production.
Adam Smith Poland