ArcelorMittal Dunkirk to idle BF for maintenance in Q2
Leading European steelmaker ArcelorMittal has scheduled maintenance on blast furnace (BF) No. 4 at its Dunkirk plant as part of its €270m investment plan at French sites Dunkirk and Fos-sur-Mer, the company confirmed to McCloskey on 11 March.
BF No. 4, one of the Dunkirk site’s two active blast furnaces, will be taken down for planned maintenance for a period of 90 days in the second-quarter. Work will be carried out on the iron ore sintering line, one of the steel mill’s converters, and BF No. 4, representing €254m of the investment.
BF No. 3 remains operational and ArcelorMittal stressed that “logistics and supplies have been anticipated in order to limit the impact on downstream production facilities and ensure continuity of service for customers.”
The Fos-sur-Mer site has been running a single blast furnace since 2023. The currently offline BF No. 1 will undergo a €18.3m revamp to extend its lifecycle, with production expected toresume in the first half of 2026, replacing BF No. 2.
The investments will help to “maintain the efficiency and operational reliability” of the plants, the company said.
Speaking to McCloskey, ArcelorMittal confirmed that there was currently no intention to move from single furnace production at Fos-sur-Mer once the revamp is complete based on existing market conditions, and that output would remain stable while maintenance is performed at the site.
ArcelorMittal is considering further investment in an EAF at Fos-sur-Mer, but has stated a need for greater security in its decarbonization investments, anticipating potential clarifications in the EU Steel and Metal Action Plan.
The European Steel and Metals Action plan is to be released 19 March, with decarbonization as a central pillar.
ArcelorMittal to idle Dunkirk BF for three months for major overhaul
The company plans to invest more than €270 million ($293 million) in its two primary steel production plants in France, at Dunkirk and Fos-sur-Mer, the company said in a statement seen by Fastmarkets.
The lion’s share of this investment, €254 million, will be at ArcelorMittal’s Dunkirk site. Major works will be carried out in the second quarter of 2025 on an iron ore sintering line, on blast furnace (BF) No4 and at one of the steel mill’s converters. During this time, BF4 will be idled for 90 days, but BF3 will remain operational.
There are three BFs at the Dunkirk site with combined capacity for about 6.9 million tonnes per year of pig iron. Only BFs Nos 3 and 4 have been operational recently, however. BF2, with capacity for 1.4 million tpy of pig iron, has been idled since June 2022, Fastmarkets understands. The site can produce 4.6 million tpy of hot-rolled coil.
“Logistics and supplies have been anticipated in order to limit the effect on downstream production facilities and to ensure continuity of service for customers,” the company statement read.
At ArcelorMittal’s Fos-sur-Mer site, the first phase of work on BF1 was about to get under way, the company said. The cost was estimated at €18.3 million to extend the life of this production unit. BF1 was scheduled for a restart no earlier than the first half of 2026. In the meantime, BF2 will remain operational.
BF1 at Fos-sur-Mer has been idled since the third quarter of 2023.
ArcelorMittal Fos-sur-Mer has two BFs with total capacity for about 5 million tpy of pig iron, market sources said. The site produces hot-rolled and cold-rolled coil.
The company gave no comment at the time of publication on the potential production losses that would result from the idling of the Dunkirk BFs.
Industry sources said that this unexpected move by a market leader would give an additional boost to hot-rolled coil prices in Europe.
“The HRC price rebound we see now is mainly driven by the circumstances around [trade] safeguard [measures] and restocking, not by real demand. News of such a major interruption at ArcelorMittal will probably push [flat steel] prices higher,” a buyer source said.
“There is no [HRC] shortage yet,” the same source added, “but if HRC import quotas are cut significantly under new [European Union] safeguards, and if Arcelor[Mittal] idles one big furnace in France, I’m sure the market will feel the effects.”
Fastmarkets calculated its daily steel hot-rolled coil index, domestic, exw Northern Europe, at €631.88 per tonne on Monday, up by €0.50 per tonne from €631.38 per tonne on Friday.
The Northern European index was up by €3.96 per tonne week on week and by €33.13 per tonne month on month.
EU lowers quota volumes, introduces new quota caps
The European Commission has announced the findings of its functioning review of the safeguard measure on imports of certain steel products initiated on December 17, 2024, and has made adjustments to the measures.
The commission has decreased the tariff-rate quota volumes for some products by lowering the liberalization rate to 0.1 percent from the current one percent to ensure the effectiveness of the measure. The EU’s safeguard measures will still expire on June 30, 2026.
In addition to the decrease in the quota volumes, the commission has also reduced the cap for the “other countries” on non-alloy and other alloy hot rolled sheets and strips (1A) to 13 percent from the previous 15 percent, while it has introduced a 13 percent cap for cold rolled sheets and strips, a 15 percent cap for non-alloy and other alloy wire rod, angles, shapes and sections of iron or non-alloy steel, a 20 percent cap for metallic coated sheets (4B), tin mill products, non-alloy and other alloy quarto plates, rebars, a 25 percent cap for metallic coated sheets (4A), organic coated sheets, stainless bars and light sections and a 30 percent cap for electrical sheets (other than goes)(3B), gas pipes, hollow sections, large welded tubes (25B), and other welded pipes.
Meanwhile, the commission will revoke the carry-over of unused volumes from one quota quarter to the next in the categories where significant import pressure is identified, namely non alloy and other alloy hot rolled sheets and strips, non-alloy and other alloy cold rolled sheets, metallic coated sheets (4A), organic coated sheets, tin mill products, non-alloy and other alloy quarto plates, stainless bars and light sections, non-alloy and other alloy wire rod, angles, shapes and sections of iron or non-alloy steel, sheet piling, gas pipes, hollow sections, seamless stainless tubes and pipes, other seamless tubes, and large welded tubes (25B).
Assofermet: new US tariffs threaten EU Steel Industry and market stability
Italian steel trade association Assofermet has expressed concerns following US President Trump’s announcement to impose 25% tariffs on steel and aluminum imports as of March 12, 2025.
Assofermet emphasized that the US tariffs could seriously threaten the European Union (EU) steel industry. The US is the second largest export market for EU steel producers, accounting for 16% of total steel exports in 2024. However, the new tariffs could lead to a drop in production in the EU steel and aluminum sector and domestic demand may be insufficient to cover this gap.
The Association also pointed to the risk of shifting steel flows from Asian countries to the EU market. “Our main concern is the possible domino effect of the new tariffs against Asian countries,” Assofermet stated, adding that this could lead to an increase in prices and a decrease in the competitiveness of the European steel industry. On the other hand, some EU steel producers have already started direct production in the US to overcome the tariffs.
Assofermet mentioned the possibility of the US administration imposing reciprocal tariffs on countries that impose trade barriers against the US, which could further complicate trade relations between the EU and the US. This situation could also slow down the EU’s green transformation process. Industry representatives emphasized that the EU should keep domestic demand alive by taking more comprehensive measures instead of only protecting the production phase.
Industry representatives underlined that the EU should take more comprehensive measures to protect the domestic market. If the measures are aimed only at the production phase, production assets in Europe may be damaged due to high costs and competitiveness may be lost in the long run.
Assofermet warns of risks from new US Tariffs on Steel and Aluminum
Assofermet has raised serious concerns over the impact of the newly announced 25% tariffs on steel and aluminum imports by the Trump administration. These measures, effective from March 12, 2025, could severely impact the European steel industry, particularly exporters that rely on the US market, which accounted for 16% of total EU steel exports in 2024.
One of the major risks highlighted by Assofermet is the potential domino effect—as Asian steel suppliers face US tariffs, they may redirect their exports to the EU market, potentially destabilizing European supply chains and creating additional pressure on EU producers. The association warns that the EU’s economic balance is already fragile, and further disruptions could harm manufacturing industries that rely on steel and aluminum.
Assofermet is urging the EU to rethink its approach to trade protection, ensuring that not only steel producers but also manufacturers and end-users are safeguarded. The association warns that if domestic demand weakens, the industry could suffer long-term competitiveness losses.
For more details, read the full Assofermet Position Paper.
New EU steel safeguards quotas softer than Eurofer ask
Amendments to the EU’s steel safeguard quotas, after a European Commission review initiated in December, are far less stringent than European steel association Eurofer’s requests.
The proposed changes will see the total duty-free hot-rolled coil (HRC) quota volume reduced from 1 April to 1.9mn t/quarter, representing a 12.1pc cut quarter on quarter. The reduction is the result of the decision to remove up to 65pc of redistributed Russian volumes, owing to sanctions after the conflict in Ukraine. Those tonnages will also be taken out of the plate, wire rod and hollow sections quotas. The largest cut in volumes on HRC is for India, with duty-free volume falling by around 23pc.
In addition, the cap to the “other countries” HRC quota access every quarter is reduced to 13pc from 15pc previously. There is now a cap introduced of 13pc for the cold-rolled coil (CRC) quotas, of 20pc for 4B hot-dipped galvanised and 25pc for 4A HDG allocations, as well as 20pc for rebar. The caps for other products are in a range of 15-30pc.
The commission is removing the access to residual quota volumes in the final quarter of the measures’ year, April-June for HRC, CRC and 4A HDG. Importers will get up to 30pc access in the 4B residual volumes. There will no longer be carry over of unused quota volumes from quarter to quarter for several products, including HRC, CRC, 4A HDG, plate and wire rod, but the mechanism will remain in place for 4B HDG and rebar. The commission will also reduce the annual quotas liberalisation rate to 0.1pc from 1pc. The latter two changes will be applicable from 1 July — all other changes will be in force from 1 April.
There will also be a new 1B quota for HRC for imports under HS code 7212 60 00 with negligible volumes, following crowding out of the highly specific product, identified by one interested party.
Notably, there have been very few changes to the developing countries list to which the measures do not apply, with Indonesia, Malaysia, Saudi Arabia, China and Thailand still exempt from the HRC quotas.
Eurofer was seeking a 50pc reduction in flat product quotas as well as a 32-41pc increase in the safeguard duty applicable to material outside allocations. It also proposed a melt-and-pour clause on Chinese steel, and a cut in the HRC other countries’ cap to 7.5pc, not the 13pc put forward by the commission.
Multiple sell-side sources had repeatedly told Argus the changes would be “meaningful”, with the commission understanding the plight of European mills.
However, the changes are substantially less drastic than those requested by Eurofer.
The review has been seen as something of a damp squib by sellers, and even buyers, which were hoping severe import restrictions would help lift prices. A source close to Eurofer said he was “shocked” by the results, and that doors “remain wide open” to imports. Another mill source termed the review a “big fat nothing”.
The safeguard will run until 30 June 2026 and there will be consultations on the review over 11-18 March.
Source: argusmedia.com
US company produces clean hydrogen using steel off-gases
Texas-based Utility Global says onsite hydrogen production using industrial off-gases is a commercially viable solution for steelmakers, Kallanish reports.
The company has claimed an industry milestone with the successful implementation of a system that can produce clean hydrogen from water without the need for electricity. Its so-called H2Gen system has produced, for the first time in the world, hydrogen using gas from a blast furnace.
Hydrogen is expected to play a promising role in the decarbonisation of steelmaking. However, its high production costs and bottlenecks around renewable energy supply are becoming impending hurdles to its application.
“Our successful deployment of H2Gen at a major steel plant [in North America] proves we can deliver scalable, economic, clean hydrogen solutions that seamlessly integrate with existing infrastructure and assets,” Utility ceo Parker Meeks states. “H2Gen is the only commercially viable solution for producing clean hydrogen in hard-to-abate industries like steelmaking.”
Pilot plant testing for H2Gen started in 2022 in Houston, delivering 99% pure hydrogen with a 99.7% operational uptime. The commercial-scale demonstration at the steel plant ran for over 3,000 hours, but details on hydrogen purity and production capacity were not disclosed.
According to Utility’s website, its technology combines electrochemical and chemical processes based on a solid oxide-based system. Its gas production is based on two streams, which are separated by an impermeable electrolyte, and counter-exchange of oxygen ions and electrons. One stream undergoes reduction whilst the other undergoes oxidation. Electrons flow from the anode to the cathode, forming hydrogen at the cathode, the company explains.
“Unlike traditional fuel cells or electrolysers, no current is extracted or delivered to the reactor to drive the process,” it adds, noting an immediate economic benefit. Further cost reductions come from its scalability, relatively small size, and simplicity – without the need for additional infrastructure.
Dillinger develops new steels for offshore towers
Dillinger has developed new steel types suited for monopiles, the steel towers for offshore wind turbines, Kallanish learns from the platemaker.
The research was carried out with materials scientists from Saarland University, mechanical engineers from RWTH Aachen University, and other partners in high-performance steel plate project.
The properties of the new steels enable them to withstand storms, waves and aggressive saltwater for many years, yet can still be produced economically, Dillinger says. They are suited for high-energy submerged arc welding and electron beam welding, which significantly shortens production times for processors.
“These high-performance welding processes are increasingly being used in large-scale industrial production for welding-intensive steel applications,” says Sebastian Scholl, Dillinger’s research and development project manager.
“Particularly in the case of monopiles, joints stretching for kilometres are required due to the huge size of the structures with large sheet thicknesses. Such a process requires materials that can withstand the enormous temperature influences during the joining process,” he explains.
The project was funded by the German Federal Ministry for Economic Affairs and Climate Protection and recently concluded after almost four years.
Christian Koehl Germany
Arvedi acquires CLN facility
Italian coil service centre CLN, part of ArcelorMittal, is divesting its AMCLN plant in Osimo, in the province of Ancona.
Starting 1 April, Osimo will become part of Italian steelmaker Arvedi’s subsidiary Centro Siderurgico Industriale, Kallanish learns from the company.
Last year, ArcelorMittal’s long and flat products distribution branch in Bologna, Italy, permanently closed.
The steelmaker’s other distribution hub in Flero, Brescia, continues to operate.
CLN, in which the steelmaker holds a 25% stake, is said to be experiencing significant financial challenges and has large liabilities to banks, according to sources. The service centre is struggling amid deteriorating automotive industry performance. CLN employs more than 6,000 workers across 22 plants in Europe, with turnover of €1.5 billion ($1.6 billion).
Natalia Capra France