Tata Steel UK’s £1.25 billion investment in Port Talbot
The landmark approval of Tata Steel UK’s state-of-the-art electric arc furnace (EAF) project in Port Talbot, confirmed by Neath Port Talbot County Borough Council, marks the most significant investment in the UK steel industry in decades. This £1.25 billion commitment will ensure high-quality steel production, preserve thousands of jobs, and secure the long-term future of steelmaking in South Wales.
Rajesh Nair, CEO of Tata Steel UK, emphasized the company’s commitment to building a greener future: “We are very pleased to have secured approval to build sustainable steelmaking in Port Talbot. We are committed to begin large-scale work on site this summer, ahead of the electric arc furnace starting up from the end of 2027.”
The industry response has been overwhelmingly positive, with Gareth Stace, Director General of UK Steel, highlighting the importance of this milestone: “This bold investment underscores Tata Steel UK’s leadership and commitment to sustainability, innovation, and the long-term success of the UK steel sector. The positive impact will be felt across the industry, the local community, and the broader UK economy.”
As the steel industry navigates challenging transitions, this development marks a clear step towards greener, more efficient steel production, setting a benchmark for sustainability and resilience in the sector.
Source: tatasteeluk.com
ArcelorMittal halts steel output at Romanian Hunedoara mill on high energy costs
ArcelorMittal has paused production at its Hunedoara steelworks in Romania from Feb. 14 until March 30 due to high domestic energy costs, a company spokesperson told Platts, part of S&P Global Commodity Insights, on Feb. 17.
“The company has been facing economic challenges in maintaining the operations of its mill at Hunedoara, due to the unsustainable cost of electricity in Romania,“ the spokesperson said. “The current energy pricing structure has created a near-impossible environment for industrial activities, threatening not only the viability of such businesses but also potentially affecting the economic stability of the Hunedoara region.”
Romania’s spot electricity prices have ranked among the highest in Europe over the past 18 months. Furthermore, the tax on electricity in Romania, including distribution costs, stands at Lei 184/MWh ($38.72/MWh). “In addition, the contractual penalty imposed for non-use of electricity purchased has increased by more than three times in the past year,” ArcelorMittal said.
In December ArcelorMittal Hunedoara introduced partial production stoppages to reduce costs. Since then, production has been running intermittently, determined by daily energy prices. If prices peak, there is no production on that day, ArcelorMittal said in the note.
ArcelorMittal Hunedoara is also seeking the support of the Romanian government to address the issues affecting the site’s operations and its employees.
The Hunedoara site comprises a mini-mill with an electric arc furnace, a ladle furnace, one continuous caster and a section rolling mill. According to the latest report from ArcelorMittal, the company produced 200.000 mt of crude steel in 2023.
Platts, part of S&P Global Commodity Insights, assessed Northwest European domestic HRC at Eur600/mt ex-works Ruhr Feb. 14, unchanged day over day.
German rebar mills try to increase prices again
German rebar mills tried to increase offers over previous contracts last week, with the modest rise seen as more realistic than those announced in December.
The base price would now be at €380/tonne ($398/t), which plus the standardised size extra of €265/t brings the delivered price to €645/t.
“The mills did not succeed with their wish to push up prices in the new year, so now this is a new run-up,” one buyer tells Kallanish. In combination with elevated prices for scrap and electricity, he thinks it highly probable the mills will prevail. “We might soon see €650/t delivered,” he says.
Others do not see a new price level coming soon and have not heard of higher prices, given the low level of inquiries and orders. One manager says the latest offers he saw last week still put rebar at €360/t and wire mesh at €460/t.
For rebar, the delivered price would be at around €625/t, which other sources consider realistic for recent transactions.
By December, many customers had placed orders for replenishment at base prices well below €350/t, leading to full order books that encouraged mills to target €400/t. This level was however never attained.
The current hike is more likely to succeed, or at least to stabilise prices. One analyst says he sees prices moving only sideways until April.
Christian Koehl Germany
Romania’s Donalam urges state support amid low-priced imports
Beltrame’s Romania-based Donalam unit, with steel mills in Calarasi and Targoviste, is sounding the alarm to authorities regarding what it says is a crisis in the steel industry, Kallanish notes.
The sector is experiencing its most difficult period in decades, facing challenges that endanger the survival of local producers, the enterprise claims.
“Massive imports of cheap steel from outside the EU, from Turkey, China, Egypt, and the Maghreb states, have surged by 27% on-year in 2024, suffocating European producers, who are required to comply with strict environmental standards and bear significantly higher production costs,” Donalam says.
“While the European Union passively watches the collapse of its steel industry, other countries, like the US and China, are taking concrete measures to protect its producers. For instance, the 25% tariffs imposed by Donald Trump on steel imports, with no exceptions or exemptions, demonstrate a strategic approach to safeguarding the domestic economy,” it adds.
The EU, on the other hand, remains vulnerable, lacking comparable protective policies, exposing its industry to unfair competition and dumping. Without urgent action, Europe risks becoming dependent on imports from outside the bloc, to the detriment of its own producers, the firm warns.
Industrial consumers in Romania meanwhile pay the highest final electricity prices in the EU, a real competitive handicap, Donalam continues.
“In January, the final energy price paid by an industrial consumer was €139/MWh ($145), while in Italy it was €71/MWh, in France €56/MWh, and in Bulgaria, it was capped at €108/MWh. Given that in Romania, by mid-February, we are witnessing a dramatic increase in the spot price of active energy to approximately €200/MWh, the urgent need for the implementation of a solid state aid scheme capable of genuinely protecting the industry against the explosion of energy prices becomes evident,” Donalam adds.
“We emphasise that Romania is the only EU country where such state support does not exist, after the war in Ukraine and global instability have led to a dramatic increase in raw material costs and severe supply chain disruptions, significantly impacting production,” the producer notes. “The absurdity reaches a new level, after Romanian exports enormous quantities of scrap metal to non-EU countries every year, only to later import finished products made from the same material at dumping prices.”
Despite an unfavourable market, Donalam says it remains committed to its long-term strategic objectives for Romania, focusing on investments in equipment modernisation and increased production efficiency. It invested nearly €20 million in 2024 alone, using its own resources.
“These are a clear testament to our commitment to transforming Donalam into a leading steel producer in Europe, both in the special steels segment and in rebar output,” says Donalam chief executive Carlo Beltrame. “What we want to emphasise is that heavy industry needs real and immediate state support and protection to remain competitive. Additionally, solutions must be found to limit the access of dumping-priced steel products to the Romanian market.”
Svetoslav Abrossimov Bulgaria
US tariffs unlikely to sharply impact Spain
The 25% tariff on exports to the US, announced by President Donald Trump, is not expected to significantly impact Spain, according to the Spanish Chamber of Commerce (CCE). This is because relative prices of steel and aluminium are not anticipated to change substantially, CCE explains in a note seen by Kallanish.
“Change in the current trade framework would negatively impact Spain’s productive sector in aggregate terms. If the 25% tariff on EU steel imports remains in place, it could lead to a 10.4% decline in the total value of Spanish exports on average,” the commerce chamber observes.
Spanish steel exports to the US totalled 264,809 tonnes in 2024, up 0.4% compared to 263,825t in 2023. Their value was $412.2 million, according to data issued by the US Census Bureau.
In October 2021, the EU and the US agreed to implement a tariff-rate quota (TRQ) system for steel trade, which is in force until March. Under this system, 3.3 million tonnes/year of steel can be exported by the EU duty free into the US. However, once this quota is exceeded, a 25% tariff is applied.
Todor Kirkov Bulgaria