EU proposes three-year compliance for automotive CO2 targets
The European Commission on Tuesday officially proposed a change to the CO2 emission standards regulation to introduce “flexibility” for carmakers.
The intention is to allow manufacturers’ compliance with the CO2 targets for 2025, 2026 and 2027 to be assessed over the entire three-year period, “averaging their performance, rather than annually”. The three-year window, instead of a yearly target, seeks to avoid penalties for non-compliance, Kallanish notes.
Commissioners are now calling on co-legislators to reach an agreement on this amendment “without delay to ensure predictability and certainty for the automotive industry and investors”.
Campaign group T&E describes the concession as a “mistake”, noting carmakers were preparing for higher electric vehicle (EV) sales to comply with the existing 2025 target, with battery electric car sales rising 28% over the first two months of the year. “This must be the last flexibility carmakers are given. Let’s allow the 2030 and 2035 targets to do their work and bring affordable EVs and cleantech investment into Europe,” adds T&E senior director Julia Poliscanova.
The European Automobile Manufacturers’ Association (ACEA) says the proposal is a “step in the right direction, aligning decarbonisation goals with real-world market and geopolitical challenges.”
“It offers much-needed breathing room for car and van makers, but this must be complemented by meaningful demand incentives and widespread charging infrastructure deployment,” the trade body adds.
It is unclear when the European Parliament and EU countries will hold a vote on the proposal. The Czech Republic has previously indicated it would push for a five-year compliance period.
Port of Liverpool sees record steel imports
Steel imports into the Port of Liverpool during 2024 surpassed their previous record high following recent investment, Kallanish learns from Peel Ports Group.
702,000 tonnes of bulk steel were processed at the port in 2024, with material coming from countries including South Korea, Vietnam, Taiwan and Turkey, as well as from Europe.
Of this, around 85% of the imports were steel coils.
The record volume exceeds its previous high by more than 50,000t and comes after significant investment by the port operator into infrastructure at the port. The company is looking to bolster its support for the steel industry.
It recently invested £2 million ($2.5m) into the development of a new deepwater bulk berth at the port’s Alexandra Complex, expanding its cargo handling operations. This can accommodate a range of vessels, including Handymax bulk carriers.
Meanwhile, a further investment in 200,000 square feet of additional inside storage space has been made in 2025 to expand Peel Ports Group’s coil and precious metals handling capabilities at the port.
Phil Hall, Mersey port director, Peel Ports Group, says: “The Port of Liverpool is a deep water gateway to global markets and we’re thrilled to achieve a record-breaking year for steel imports.”
“The figures speak for themselves, showing the work we’re doing to meet our ambition of cementing Liverpool as the leading UK hub providing vital commodities to a range of industries. That’s further supported by our dedication to investing in the port’s infrastructure, market reach, our port-centric services, and our expert teams,” he continues.
He adds: “We look forward to building on this success with our customers and developing this market leading proposition further.”
Carrie Bone UK
ArcelorMittal increases European HRC prices: sources
ArcelorMittal is set to increase coil prices by €20/tonne ($21) across northern Europe. This adjustment will take effect for new deliveries in June, market sources tell Kallanish.
The asking price for new hot rolled coil allocations is set at €700/t base delivered. The import restrictions imposed by the EU are prompting customers to seek domestic sourcing of material within Europe, sources observe. Demand has improved slightly, apparently spurred by the EU safeguard measure adjustments, with sentiment turning positive in the European coil market.
Southern Europe is adopting the pricing trend with a minor delay, with northern European prices approximately €10/t above those in Italy and Spain. Buyers who spoke with Kallanish have voiced apprehension over the availability of coil in Europe, noting that importing poses considerable difficulties.
Natalia Capra France
Producer prices in French industry down 0.8 percent in February from January
In February this year, producer prices in French industry were down by 0.8 percent month on month and by 1.4 percent year on year, according to the statistics released by France’s National Institute of Statistics and Economic Studies (INSEE). Producer prices for manufactured products in France went up 0.1 percent in February compared to January and increased by 0.7 percent year on year.
In the given month, prices for exported manufactured products and exported transport equipment remained stable and decreased by 0.3 percent, both month on month, respectively. On year-on-year basis, in February prices of exported manufactured products went up by 1.2 percent, while prices of exported transport equipment saw a three percent increase.
Meanwhile, import prices for manufactured products in France in February grew by 0.1 percent month on month and rose by 0.4 percent year on year.
Tenova to revamp Marcegaglia’s cold rolling mill at Gazoldo degli Ippoliti
Italy-based Tenova, a Techint Group company specialized in innovative solutions for the metals and mining industries, has announced that it will modernize Italian stainless steelmaker Marcegaglia Gazoldo Inox’s 20-Hi cold rolling mill at its Gazoldo degli Ippoliti plant.
Accordingly, the modernization works will lead to an increase in production volumes and to the expansion of Marcegaglia’s product portfolio. Also, the revamped mill will achieve higher rolling accuracy, improved process stability, and enhanced operational reliability. The integration of automation and digital tools will enable Italian steelmaker to set new benchmarks in cold rolling efficiency and production flexibility.
The revamped mill is expected to be operational by early 2026.
European steel HRC prices stable amid quiet trading
Fastmarkets calculated its daily steel hot-rolled coil index, domestic, exw Northern Europe at €645.00 ($675.02) per tonne on Tuesday, down by €1.25 per tonne from €646.25 per tonne on Monday.
The Northern European index was up by €1.67 per tonne week on week and by €18.17 per tonne month on month.
The limited domestic supply in the second quarter, combined with the comparatively low end-user demand, dominated trading in the Northern European spot market, Fastmarkets understands.
Buyers would purchase volumes only to cover their immediate needs, while producers were “comfortably booked” for the second quarter and were not fighting for quick deliveries at the moment, industry sources told Fastmarkets.
“Not much business is being done in the market currently,” a distributor source in the Benelux region told Fastmarkets, adding that some recent issues with European mills have affected the market.
For example, German steelmaker Salzgitter declared force majeure on HRC deliveries due to a fire at a hot strip mill late in February. And ArcelorMittal recently said that it would stop operations at one blast furnace in Dunkirk for the entire second quarter of 2025 for planned maintenance.
Industry sources told Fastmarkets that mills in Northern Europe were largely sold out for May, and June-delivery coil was being more actively offered in the market.
Such material was mainly on offer at €650-660 per tonne ex-works.
One European integrated producer continued to seek for €680 per tonne ex-works or delivered, depending on the region, and for July delivery material offers were heard as high as €700 per tonne ex-works or delivered.
“Spot market [HRC] for short delivery is not available [at the moment]. Lead times are stretching out and most mills are stiff on pricing,” a trader source based in Germany told Fastmarkets.
Buyers estimated the tradeable market level for HRC in Northern Europe at €640-650 per tonne ex-works.
Meanwhile, in Southern Europe, Fastmarkets’ daily steel hot-rolled coil index, domestic, exw Italy was calculated at €625.00 per tonne on Tuesday, down by €0.72 per tonne from €625.72 per tonne on Monday.
The index was up by €0.83 per tonne week on week and by €12.50 per tonne month on month.
Italian suppliers were heard offering HRC at €630-650 per tonne ex-works, Fastmarkets understands. But buyers estimated the tradeable market level to be lower, at €620-630 per tonne ex-works.
Regarding imports, Asian suppliers were heard offering HRC to Italy at €550-570 per tonne CFR.
Turkey continued to offer May-shipment HRC at €590 per tonne CFR, including anti-dumping duty, but no fresh transactions were heard in the market.
Published by: Darina Kahramanova
ArcelorMittal increases flat steel prices in Europe again
Notably, new HRC offer prices from ArcelorMittal with lead times in June-July were heard at €700 per tonne ex-works, or delivered, across Europe, sources said.
This is up from the producer’s previous offer price of €680 per tonne ex-works for HRC reported in March.
In February, the steelmaker did a similar move, raising prices in Europe by €30 per tonne.
ArcelorMittal’s press office does not usually comment on prices.
So far, the market has had mixed reactions to the new increase.
“The price increase is based entirely on the lack of imports [because of]… safeguard measures and domestic supply issues. Real demand is still slow,” a buyer in Germany said.
Meanwhile, other mill sources said that apparent buying did pick up recently after new safeguards measures were announced and provisional anti-dumping (AD) duties against Japan, Vietnam and Egypt were set.
On March 25, the European Commission announced the results of its steel safeguards review, with new adjustments to the current measures to come into force this Tuesday.
And on March 14, the Commission proposed to set provisional AD duty rates on HRC imports from Egypt, Vietnam and Japan, Fastmarkets reported.
In recent weeks, European HRC prices have been gradually increasing, with support from limited availability of imports and supply issues at some domestic suppliers.
“ArcelorMittal is doing what they have to do as market leaders. And we all know that HRC imports will face a bottleneck; alternatives, such as Indonesia and Malaysia, are not yet as reliable,” a trading source in Southern Europe said.
Order books at key suppliers in Germany and the Benelux area were reportedly satisfactory, so producers were in no hurry to sell material and felt no pressure to give discounts.
“Most major suppliers are comfortably booked and have little tonnages left for second-quarter delivery,” a mill source in northern Europe said.
“Demand has picked up in recent weeks — there is restocking, and considering the imports situation [new safeguards and anti-dumping against Vietnam, Egypt and Japan], many buyers opt for European HRC to mitigate risks,” a second mill source said.
But tradeable prices for HRC across Europe have remained far below ArcelorMittal’s target offers, sources said.
“Increasing [HRC] prices against weak consumption is unsustainable,” a second trader said.
Fastmarkets calculated its daily steel hot-rolled coil index, domestic, exw Northern Europe at €645.00 per tonne on April 1, down by €1.25 per tonne from €646.25 per tonne on Monday March 31.
The Northern European index was up by €1.67 per tonne week on week and by €18.17 per tonne month on month.
Published by: Julia Bolotova
EU Steel Safeguard could wipe out 6MT imports
Recent safeguard measure adjustments and anti-dumping duties will reduce EU flat steel imports by 5-6 million tonnes/year. This encompasses hot and cold rolled coil, as well as coated flats, EU steelmaker sources tell Kallanish.
“We believe the market perception following the publication of the safeguard review may have been overly pessimistic, influenced by exceptionally high expectations. Because the document is very technical, market participants had the tendency to talk it down … When you read every detail and try to simulate what it means product by product, you end up realising this means several million tonnes of lower imports,” a European steelmaker says.
The steelmaker expresses optimism regarding the short to medium-term effects of the adjustments on the domestic market.
Several market participants initially expressed dissatisfaction with the safeguard review but are now realising its significance, the source continues.
“The EU communication is not [US President Donald] Trump’s style; they don’t say they will build a concrete wall and impose 25% for every tonne imported, but if we add up everything, we come to this significant 5-6 million tonnes figure,” the source explains.
Estimates from the steelmaker and a significant European coil buyer suggest some 3m t/y of HRC imports could be removed from the EU market as a result of the review.
Buyers are exploring alternative sources, including Indonesia, Malaysia, and Algeria. Multiple buyers, however, have reported the initial feedback regarding Indonesian material is unfavourable and the relationship with producers from these countries could be complex. “The good quality suppliers from Asia are already booked out for two quarters, so reliable material is no longer available,” the buyer says.
The steelmaker source acknowledges the safeguard document contains certain omissions that indicate potential counter-lobbying from various buyers, including Vietnam’s position and the reallocation of the Russian quota.
However, “overall, we think it’s effective, and we will feel the impact in the next months,” the source continues. He has observed a significant shift in tone and language within European Commission circles, indicating authorities’ intent to achieve “appropriate and effective protective measures and a highly effective level of protection”.
The Commission published its long-anticipated Steel and Metals Action Plan on 19 March.
“These words are there and are not there by coincidence … I find it very interesting that you see in the document a real action plan; they now have a timeline and actions which I have never seen in such a document. For instance, the circumvention [measure] has to be in action by the end of Q3 2025. This is a shift in attitude that gives us more confidence. They now have a real working plan with clear objectives. Certainly, we still have to work a lot to make sure they stay on track,” the source comments.
The “melted and poured” rule will also stop unfair practices, he adds.
“There are question marks about CBAM; it is unclear how the design will evolve and there are still a lot of flaws.” However, the Commission is looking to find practical solutions to the overly complex mechanism.
Customers have been used in recent years to procuring any product available with a short lead time at the lowest price, but “now this is changing. We are starting to get more enquiries and more pricing power because buyers do not have so many options. The few import origins available also have a long lead time and sometimes limited range,” the steelmaker believes.
He sees an increasing sense of optimism in the market, particularly emanating from Germany. The national infrastructure fund is poised to significantly influence steel demand, especially for long products and plate, which will likely yield a favourable effect on the overall market.
“It will have a multiplicator effect on the economy and that cannot be underestimated. I think the biggest news is that Germany has said the era of frugality is behind us, we understand what’s ahead of us … which is a huge political change. The country has decided to use its power and has all the financial means under the elbow required; this is the biggest thing for Europe,” the source concludes.
The European Commission’s steel safeguard measure review has resulted in new residual quota caps, the reduction of liberalisation rates and scrapping of quota carry-over, among other measures (see Kallanish passim). The Action Plan has so far promised to assess the melted and poured rule and consider proposing scrap export duties, as well as present a legislative proposal to amend CBAM in Q4, besides other proposals. However, numerous proposed measures are yet to be confirmed or detailed.
Natalia Capra France
Kloeckner acquires Ambo-Stahl for defence portfolio
Kloeckner Metals Germany says it has taken over Ambo-Stahl GmbH, Kallanish hears from the German unit of distribution group Kloeckner & Co.
Based in Cologne, Ambo-Stahl is a processor of mainly high-tensile and wear-resistant steels. With the acquisition, Kloeckner intends to widen its portfolio for customers in the defence industry. According to Kloeckner, Ambo-Stahl also supplies to the segments of construction machinery, utilities infrastructure and conveyor technology. Besides flame cutting, it offers machining services such as milling, drilling, and grinding, and prefabrication such as bending and welding.
The takeover marks a further step on Kloeckner & Co’s journey from a distributor to a metals processor. In addition, Kloeckner highlights its ambition in playing a role in the defence sector.
Felix Schmitz, chief executive of Kloeckner Metals Germany, refers to the European “Zeitenwende”, or turning point in history, a term coined by chancellor Olaf Scholz after Russia invaded Ukraine. He says it is the company’s responsibility during this time to support customers in the defence industry by forming strong value chains.
Ambo-Stahl’s website does however not highlight defence, or any other customer group.
Christian Koehl Germany
EU, UK fine carmakers for recycling cartel
European carmakers have been fined €458 million ($495.6m) for participating in a 15-year cartel concerning end-of-life vehicle (ELV) recycling, Kallanish reports.
The European Commission said Tuesday that 16 major automakers and industry trade body ACEA entered into “anticompetitive agreements” and engaged in concerted practices related to vehicle recycling. The investigation was coordinated with the UK Competition and Markets Authority (CMA).
Thanks to Mercedes-Benz’s tip-off, officials in Brussels and London found that the parties agreed not to pay car dismantlers for processing ELVs and not to promote how much of an ELV can be recycled, recovered and reused.
“Their goal was to prevent consumers from considering recycling information when choosing a car, which could lower the pressure on companies to go beyond legal requirements,” the EC explains.
Japanese carmakers Honda, Mazda, Mitsubishi and Suzuki had a lower involvement, thus a smaller fine. Officials also granted a reduction to Renault since the French carmaker had previously asked to be exempted from the agreement not to advertise the use of recycled materials in new cars.
Stellantis, Mitsubishi and Ford benefitted from reductions of 50%, 30% and 20%, respectively, for their cooperation with the EC. Mercedes-Benz received full immunity for revealing the cartel, avoiding a fine of €35 million.
The investigation issued the biggest fine to Volkswagen at €127.7 million. Renault/Nissan followed with a penalty of €81.46m, while Stellantis (excluding Opel) was hit with a fine of €74.9m.
“Today, we have taken firm action against companies that colluded to prevent competition on recycling,” comments Teresa Ribera, EC vice president for Clean, Just and Competitive Transition. “We will not tolerate cartels of any kind, and that includes those that suppress customer awareness and demand for more environmental-friendly products.”
The official adds that high-quality recycling in key sectors such as automotive will be central to meeting the EU’s circular economy objectives, “not only to cut waste and emissions, but also to reduce dependencies, lower production costs and create a more sustainable and competitive industrial model in Europe”.
While ACEA was the facilitator of the cartel, its UK counterpart SMMT was also involved.
Separately, the CMA issued fines of over €77m to ten carmakers in the UK: BMW, Ford, Jaguar Land Rover, Peugeot, Citroen, Mitsubishi, Nissan, Renault, Toyota, Vauxhall and Volkswagen.
Under the so-called buyers’ cartel, the parties agreed among themselves how they would individually interact with suppliers. “In this case, the manufacturers involved mutually agreed the price that they would each individually pay for recycling services (zero), thereby preventing the providers of recycling services from negotiating a higher price,” the CMA explains.