Northern European long steel market inhibited by weak demand from construction sector
But high energy prices mean mills in the region maintained their offer prices from the previous week, Fastmarkets understands.
Fastmarkets’ weekly price assessment for steel reinforcing bar (rebar), domestic, delivered Northern Europe, was €625-645 ($651-672) per tonne on Wednesday, widening week on week down by €15 per tonne from €640-645 per tonne on January 15.
Price increases established before the Christmas holidays have been maintained despite the weak demand, mainly because of ongoing high feedstock costs, sources said.
“These is ongoing poor demand, but we have had some inquiries and some [questions] about prices [and we] still have some running orders from last week,” one buyer source told Fastmarkets.
Deals were reported at around €625 per tonne while offers were reported at €635-645 per tonne. It remained unclear if the market would accept these higher offers.
“Energy costs are around 25% higher than they were last year, which is a big problem for the steel mills, especially with low demand,” the buyer source told Fastmarkets.
Sources in the Netherlands said they expected construction projects to pick up again in Spring, which could, in turn, stimulate buying activity.
“The government is talking about new construction projects being commissioned,” a trader source from the Netherlands said. “If it is true, we will see. Sentiment is better now we have a new government, that says it will prioritise building over environmental priorities.”
Import offers for rebar into Northern Europe were scarce due to weak demand and uncompetitive prices, sources said.
Scrap prices edged slightly higher, meanwhile, amid improved demand from Turkish mills for February deliveries due to improving steel sales in the country, sources told Fastmarkets.
Fastmarkets’ calculation of its daily index for steel scrap, HMS 1&2 (80:20 mix), North Europe origin, cfr Turkey, was $334.58 per tonne on Wednesday, up from $332.34 per tonne week on week but down from $348.12 per tonne month on month.
Fastmarkets’ corresponding weekly price assessment for steel wire rod (mesh quality), domestic, delivered Northern Europe, was unchanged at €610-620 per tonne.
Wire rod import offers were reported at €590 per tonne for May delivery, but the appetite for imports was muted amid ongoing uncertainty regarding the current EU safeguard review.
“The last review from June 2024, which came into effect on July 1, 2024, caught a lot of [market participants] by surprise, so there is some risk aversion [now],” a wire rod producer source said.
Bleak outlook
The outlook for the European steel market remains bleak due to ongoing weak demand and negative growth in the region, combined with increasingly protectionist measures elsewhere, the International Rebar Producers and Exporters Association (IREPAS) said in its latest short-range outlook, published on January 15.
According to IREPAS, the EU is expected to announce a revision of protective measures on April 1.
Excess capacity from China has continued to put downward pressure on prices and, with increasing moves towards protectionism, heralded by the US, the short- or medium-term outlook was bleak, both in terms of prices or demand, the association said.
Private consortium increases non-binding offer to acquire German steelmaker Salzgitter
The consortium consists of GP Günter Papenburg AG, who currently holds 25% shares of Salzgitter and German major recycler TSR Recycling GmbH & Co KG.
“We can confirm that a non-binding offer has been submitted to Salzgitter AG, stating an indicative offer price of €18.50 ($19.28) per share, and that [Salzgitter] is in talks with the consortium,” Salzgitter’s spokesperson told Fastmarkets.
After the news emerged, Salzgitter’s share prices on Frankfurt Stock Exchange jumped to €16.62 per share on January 23, compared with €15.78 per share on the previous day.
“As soon as a formal offer has been received, the Management Board and the Supervisory Board will comprehensively review and evaluate it in accordance to legal obligations,” Salzgitter’s spokesperson added.
In November 2024, GP Günter Papenburg AG and TSR submitted a non-binding offer, but at €17.50 per share, several sources told Fastmarkets.
The consortium is looking to achieve an aggregate shareholding of at least 45% plus one share, including the shares already held by the German construction company, Fastmarkets previously reported.
Currently, the German state of Lower Saxony is the largest shareholder in the company at 26.5%, according to Salzgitter’s data. GP Gunter Papenburg currently owns a share of 25.1%, and Salzgitter has 10%. The rest of the shares are distributed among other retail and institutional investors.
“In recent months, the state government has held intensive discussions on the plan for a possible takeover of Salzgitter AG by the Papenburg Group and TSR. According to the considerations known to the state so far, no economic advantage or contribution to the sustainable development of Salzgitter AG could be seen from the proposed conditions,” a statement from Lower Saxony’s Ministry of Finance, received by Fastmarkets on January 23, said.
“New and more specific conditions have now apparently been proposed to Salzgitter AG, which must first be examined and evaluated by the board of directors of Salzgitter AG. The Ministry of Finance is not yet aware of the proposal in detail…The state does not plan to sell its shares in Salzgitter AG,” the statement said.
Market brief
Salzgitter currently runs three blast furnaces with a combined capacity of about 4.8 million tonnes per year of crude steel. The company produces hot-rolled coil, cold-rolled coil, electro-galvanized, hot-dipped galvanized and organic coated steel sheet.
The company posted negative financial result for the first nine months of 2024, according to the latest reported published in November 2024.
Company’s steel sales in January-September 2024 decreased by 8.07% compared with the same period of time in 2023 to €7.7 billion. For the same period the company’s earnings before interest, taxes, depreciation and amortization dropped by 44.3% year on year to €320.6 million.
Earnings before interest and taxes was at a loss of €54.6 million compared with a profit of €341.6 million in January-September 2023.
Market conditions in Europe have remained challenging, with real steel consumption deteriorating, with the construction sector in particular suffering from weak demand — under pressure from higher interest rates and rising building costs.
In October 2024, Fastmarkets daily steel HRC index, domestic, exw Northern Europe averaged €549.25 per tonne, the lowest level since November 2020, when the index averaged €530.72 per tonne
This report was updated to include quotes from Lower Saxony’s Ministry of Finance on Thursday January 23.
Taiichio&Wolf Projects wins “SME of the Year” award in Valencia
Taiichio&Wolf Projects, a company specializing in steel product supply chains and a proud member of EUROMETAL, has been named SME of the Year 2024 in Valencia. The award, organized by Banco Santander and the Valencia Chamber of Commerce in collaboration with the Spanish Chamber of Commerce and Levante-EMV, recognizes outstanding contributions from small and medium-sized enterprises to the Spanish economy.
At the award ceremony held at The Terminal Hub, Rafael López, CEO of Taiichio&Wolf Projects, highlighted the company’s innovative initiatives. “We work on renewable energy projects, primarily offshore wind. Currently, we are involved in a groundbreaking project that will develop two prototypes of floating solar platforms in Valencia. Additionally, we are collaborating with a Korean partner to develop pipelines for carbon capture and hydrogen,” López stated.
This recognition places Taiichio&Wolf Projects among the finalists competing for the National SME of the Year Award 2024, to be announced in Madrid during the first quarter of 2025.
The event also acknowledged other exemplary SMEs with special mentions in key categories. These included Internxt Universal Technologies for Innovation and Digitalization, Aranguren Comercial del Embalaje (Aranco) for Sustainability, Resuinsa Experiences for Internationalization, and Fongascal for Training and Employment.
Photo: Fernando Bustamante
Source: levante-emv.com
EU stainless flats start year slow
The European stainless flat steel market is experiencing a slow recovery this year, stainless steel processors and service centres tell Kallanish.
EU coil producers are increasing their prices by €20-30/tonne ($20.8-31.2/t) for March delivery. This, however, will face resistance from buyers because of the challenges in transferring the increases downstream. Certain mills are currently quoting lead times for March, while others continue to fill February order books. This year, there has been some increase in orders for sheets, a source in Italy reports. He indicates a lead time for sheets extending to the end of March. Orders for tubes, however, continue to show subdued demand.
Several coil buyers have voiced their apprehensions regarding the 8% duties they will be required to pay for coils imported from Indonesia. Prevailing sentiment among buyers discourages taking part in the import market. In northern and western Europe, stainless cold rolled coil for February delivery is at €2,450-2,460/t delivered. The market price for Italian stainless CRC stands at €2,400/t delivered. Stainless hot rolled coil in Europe, including Italy, is ranging between €2,150-2,200/t delivered.
Distribution prices are experiencing persistent downward pressure, reflecting trends observed in the fourth quarter. Distributors and service centres tell Kallanish they are struggling to implement price increases, leading to significant negative financial impacts. Flat product stocks in northern and central Europe are currently assessed as moderately low, while those in Italy are said to be higher. Current pricing for sheets in Europe is reported to average €2,550-2,600/t delivered, with Italy slightly lower at €2,500/t, according to sources. Current scrap prices are not supporting finished products. The European stainless scrap market is marked by a lack of significant activity. Scrap demand from mills in Europe is subdued, largely due to their continued procurement of cheaper slab and nickel pig iron from Asia. Steel producers are anticipated to continue sourcing these materials, whereas demand for scrap is expected to remain weak in the coming months.
“The significant contraction observed in purchasing activity aligns with the overall performance of the European industrial sector… Many believe that the current persisting demand weakness is likely to continue throughout the entire first quarter,” Italian trade association Assofermet says in a market note seen by Kallanish. This year, the market will face challenges due to rising energy costs, potentially resulting in price hikes as companies strive to restore their margins.
Natalia Capra France
German fabricators support ‘SOS Industries’ campaign
Germany’s association of steel and metals fabricators, WSM, is supporting a nationwide campaign to raise awareness for the critical state of Germany’s industries, Kallanish understands.
The campaign is called Wirtschaftswarntag (SOS Industries), and has been organised by an alliance of more than 50 industries associations, mostly representing small and medium-sized enterprises. The campaign has set up a large rally at the Brandenburg Gate in Berlin on 29 January.
“The code for emergencies at sea, SOS, in this context stands for ‘Save our small and medium-sized enterprises’,“ says Christian Vietmeyer, managing director of WSM. He cautions that the campaign is not a mere test alarm. “We are already on the edge of tipping over,” he warns.
The main rally in Berlin will be preceded by regional campaigns all over Germany, often including regional metals working and construction associations. The Wirtschaftswarntag means to set a signal to political parties in the run-up to the new governmental elections in February.
“Our aim is to wake up the nation, so that the focus of the election campaigns and the of the new government will be a policy that leads Germany back to economic strength,” organisers state.
Christian Koehl Germany
CSN buys Portuguese steel profile producer GramPerfil
Brazil’s Companhia Siderúrgica Nacional has entered into a purchase agreement for the acquisition of Iberian steel profile producer GramPerfil, Kallanish learns from the Portuguese Competition Authority (AdC).
According to a notification published on Wednesday, the transaction will be executed through the steelmaker’s subsidiary CSN Steel SL, a distribution service company based in Bilbao, Spain.
“This acquisition enables us to expand our production, sales and processing capabilities for profiles and accessories in the civil construction and energy sectors. Additionally, it strengthens our presence in international markets, particularly in France, North Africa and Portuguese-speaking African countries,” CSN states.
The value of the transaction was not disclosed.
Todor Kirkov Bulgaria
European Commission starts strategic dialogue on automotive sector support
The European Commission (EC) has launched a Strategic Dialogue with stakeholders in the European automotive industry to develop solutions to support the sector in a period of transformation, the EC said in a statement.
The strategic dialogue initiative will start on 30 January and aims to protect the future of the automotive sector, which is the second largest consumer of steel, Kallanish notes.
The European Commission will hold regular meetings with all stakeholders to ensure the long-term competitiveness, sustainability and viability of the European automotive industry.
“The key topics for discussion will be innovation, clean transition and decarbonization, competitiveness and sustainability, trade relations and an international level playing field, as well as regulatory simplification and process optimization,” EC said. “The European automotive sector has long faced various challenges caused by the corona crisis, the war in Ukraine, and political and economic turmoil in Europe.”
Within the Commission, the Commissioner for Sustainable Transport Apostolos Tzitzikostas has been tasked with developing an action plan for the sector, which will benefit from these discussions.
The Strategic Dialogue will be chaired by President Ursula von der Leyen and consist of regular meetings bringing together industry representatives (manufacturers, suppliers), social partners, Commissioners and other stakeholders, including from civil society.
Thematic working groups will then come forward with detailed proposals. Broader consultations with other stakeholders across the industry as well as other parts of the automotive value chain, will also be conducted. The Council and European Parliament will be closely involved throughout the process.
The automotive industry, a cornerstone of the European economy, employs over 13 million people and contributes approximately 7% to the EU’s GDP.
“However, this critical industry is facing a period of significant transformation, driven by digitalization, decarbonization, increased competition, and a changing geopolitical landscape,” EC observes. “These factors are challenging the established strengths of European carmakers.”
Svetoslav Abrossimov Bulgaria
German steel output increases, remains below historic norms
Crude steel production by German mills in 2024 was 5% higher than the year before, totalling 37.2 million tonnes, according to national steel federation WV Stahl.
Still, the overall production activity in Germany remains broadly in recession mode, WV Stahl notes, as output has been lower than 40mt for three years in a row. Other economic data contribute to a gloomy picture, Kallanish hears from the federation. Demand remains at a critically low level, and market supply has hit a historic low with an annual total of 27mt of finished products, 7% less than 2023.
Since 2017, the German market lost one-third of its previous volume, in contrast to overseas economies and other industrial EU nations, WV Stahl points out. With a view on the upcoming governmental elections, managing director Kerstin Maria Rippel calls on policy-makers to take measures to lead Germany back to strength as an industrial powerhouse.
The country hurts especially from the combination of low-priced imports and uncompetitive costs for electricity, Rippel says. The grid fees alone last year imposed extra costs of €300 million ($313m) for steelmakers. With US President Donald Trump taking office, Germany and the EU can no longer hide behind the argument of World Trade Organisation compatibility, she says.
In detail, crude steel production on the oxygen-route rose by 3.3% to 26.4mt, whilst EAF production went up by 10.2% to 10.8mt. The EAF-route increase is stronger, as 2023 was affected by an unusual temporary peaking of power prices, which lead to reduced activity.
That same effect can be seen in the figures for December 2024, when EAF production fell 3.1% year-on-year. Germany’s power supply was again affected by peaking prices due to a shortfall in renewable energy last month and again this month.
Christian Koehl Germany
Marcegaglia UK expands stainless steel tube production
Marcegaglia UK has announced an expansion of its manufacturing capabilities at its Oldbury site and now produces electro-welded stainless steel tubes.
The addition complements its existing production of carbon steel tubes, allowing it to provide a broad range of high-quality steel products for various applications, Kallanish learns from the company.
The Oldbury facility spans 69,000 square metres, with 46,184 square metres of covered space. It is equipped with four production lines for carbon steel tubes, with a total capacity of 70,000 tonnes, alongside three production lines for stainless steel tubes, enhancing the capacity by an additional 30,000t.
The production of stainless steel welded tubes at Marcegaglia UK focuses primarily on steel grade 304, adhering to the EN10296-2 standards for round tubes and ASTM A544 standards for square and rectangular tubes.
The company says the expansion marks a significant step in its UK’s growth, reflecting its dedication to meeting the diverse needs of its customers across the steel industry whilst its production lines are equipped to provide a variety of specific tube finishes.
Marcegaglia UK has recently become a member of the British Stainless Steel Association (BSSA).
Carrie Bone UK
UK revokes safeguard on CR-sheets amid production halt
The UK is to revoke its safeguard measures on cold-rolled sheets as the country’s sole producer is ceasing production of these products for domestic sale, Kallanish notes from Trade Remedies Authority’s (TRA) notice published on 22 January 2025.
The decision, effective the day after publication, applies to category 2 steel products, including non-alloy and other alloy cold-rolled sheets under the following commodity codes: 72091500, 72091690, 72091790, 72091891, 72092500, 72092690, 72092790, 72092890, 72099020, 72099080, 72112320, 72112330, 72112380, 72112900, 72119020, 72119080, 72255020, 72255080, 72262000, and 72269200.
The discontinuation review occurred due to a change in circumstances since an extension of the measure on 1 July 2024. Evidence indicated that UK steel producers would no longer face serious harm if the measures were lifted. This follows an application by UK producer Tata Steel in November 2024.
Meanwhile, India has significantly utilised its quota, with 47% or 5,400 tonnes remaining. South Korea has 72% or 7,000t of its allocation available, while the EU and Others have used little of their allowances, leaving 93% and 92% available, respectively, as of 20 January.
| Origin | Quota 01.01.25 – 31.03.2025 | Imported | Remaining | Remaining, % |
| EU | 79.3 | 5.7 | 73.6 | 93 |
| India | 11.7 | 6.2 | 5.4 | 47 |
| South Korea | 9.8 | 2.7 | 7.0 | 72 |
| Others | 24.7 | 2.0 | 22.8 | 92 |
Source: UK Government.
Elina Virchenko UAE