Hydnum to supply thyssenkrupp with low-emissions steel
Hydnum Steel (HS) will supply thyssenkrupp Materials Processing Europe with low-emission flat steel totalling 100,000 tonnes over an initial seven-year period, Kallanish learns from the prospective Spanish steelmaker. The companies will also collaborate on logistics optimisation and promote the transition to a decarbonised steel industry.
“The commitment highlights the growing interest of major industrial players in low-environmental-impact steel and reinforces both companies as leaders in sustainability and advanced technology,” HS explains.
The agreement will enable thyssenkrupp Materials Processing to expand its range of environmentally friendly products and respond to the industry’s growing interest in sustainable solutions.
“Interest in clean steel is growing rapidly, and we need partners like Hydnum to offer solutions that combine sustainability and innovation,” comments thyssenkrupp Materials Processing chief executive Marcus Wöhl. “This agreement reinforces our role as leaders in the transformation of the steel industry.”
The two companies say they will additionally explore innovative business models and customised processing strategies to maximise the value of the products offered to their customers.
HS is building the first “green” steel mill on the Iberian Peninsula, which is designed to use fossil-free energy throughout the manufacturing process. It will gradually incorporate green hydrogen to substantially reduce CO2 emissions. The plant will have a production capacity of up to 2.6 million tonnes/year of flat steel. The project is valued at €1.65 billion ($1.78 billion).
Thyssenkrupp Materials Processing operates processing facilities and distribution centres across Europe, supplying the automotive, construction, and household appliances sectors. The company is part of thyssenkrupp Materials Services, one of the world’s leading independent distributors and service providers.
Todor Kirkov Bulgaria
EUROMETAL meets with EUROFER to address challenges facing the European Steel Market
On a visit to EUROFER headquarters in Brussels yesterday, EUROMETAL held a high-level meeting with Mr. Axel Eggert, Director General, and Mr. Karl Tachelet, Deputy Director General for International Affairs and External Relations.
EUROMETAL was represented by its President, Alexander Julius, Vice-President Fernando Espada, Board Member Jaap Jan Aardenburg, and Director General Ricardo Silva.
During the discussions, EUROMETAL raised serious concerns about the growing influx of imported finished steel products entering the European market. This trend, already identified in recent exchanges with processors and manufacturers, poses a significant threat to the entire European steel value chain.
EUROMETAL emphasized that the increasing volume of these imports of ready-made steel-based products is undermining both the distribution and production sectors. The impact is being felt across logistics, processing, and distribution, with broader implications for the overall competitiveness of the European manufacturing industry — an industry that supports 13.6 million direct jobs.
EUROMETAL called for close coordination and joint action with EUROFER to defend the integrity of the European market and ensure a level playing field for all stakeholders in the steel ecosystem.
EUROFER appreciated our position, and the meeting proved to be a solid foundation for exploring further collaboration in support of our shared agenda.
Europe and Asia brace for impact as US auto tariffs kick in
Asia and Europe are bracing for impact as the US administration’s 25% tariffs on imports of cars, light trucks, and auto parts are set to disrupt trade flows, mostly from key exporting countries like South Korea, Japan, and Germany.
The tariffs on cars and light trucks took effect from April 3, while duties on auto parts will be effective on May 3. However, the auto industry will not face additional tariffs announced by the US administration on April 2.
As vehicles and automotive parts are closely associated with steel and aluminum markets, the move is expected to add another layer of uncertainty as the US already has imposed 25% tariffs on all steel and aluminum imports, leading to retaliation by other countries.
South Korea’s Prime Minister Han Duck-soo said April 3 that his country will “quickly prepare emergency support measures” for industries and companies that will be affected by US tariffs on automobiles and other items.
In response to the April 2 tariff announcement by the US, China said it will take countermeasures to safeguard its own rights and interests, according to the spokesperson of the Ministry of Commerce.
Japan’s Prime Minister Shigeru Ishiba on March 27 said his government will put “all options on the table” in dealing with the US tariffs.
The European Automobile Manufacturers’ Association said the EU and the US must talk to find an immediate resolution to avert tariffs and the damaging consequences of a trade war that would not only negatively impact global automakers but US domestic manufacturing as well.
Asia
Japan shipped 1.4 million cars to the US in 2024 to become the third largest exporter to the US, according to US Department of Commerce data.
Japanese vehicle exports to the US were valued at Yen 6.03 trillion ($39.9 billion) in 2024, up 3.1% year over year, data from the Ministry of Finance showed.
South Korean vehicle exports to the US were valued at $40.01 billion in 2024, up 8.3% from 2023, data from the Ministry of Trade, Industry and Energy showed. Exports reached 1.5 million units in 2024, according to US Department of Commerce data.
China exported 106,592 units to the US in 2024, accounting for just 1.7% of China’s total vehicle exports, data from the US Department of Commerce showed.
Imports of China’s electric vehicles could face a steep rise in tariffs as the US already quadrupled tariffs on Chinese-origin EVs to 100% in September 2024, China-based sources said.
The US tariff hikes would intensify uncertainty in global trade markets, which could weaken China’s exports of manufactured goods, including vehicles, according to China-based steel market sources.
Europe
Tariffs on automobiles are likely to impact European steel producers and service centers linked to the auto industry, especially given the existing 25% tariffs on their products.
The auto industry is the second-largest consumer of steel, accounting for 17% of steel procurement in the EU.
Germany, the fifth-largest vehicle exporter to the US, shipped 446,556 cars to the US in 2024, making it the most-affected European country, followed by the UK and Slovakia.
Prices
Tariffs could potentially increase steel prices in the US due to reduced supply. Platts, part of S&P Global Commodity Insights, assessed the daily TSI US HRC index at $940/st on an ex-works basis on April 2, up 3% month over month.
European flat steel is likely to come under pressure as the US remains an important market.
Platts assessed HRC in Northwest Europe at Eur640/mt ex-works Ruhr April 2, up 4% month over month, while CRC prices in Northwest Europe were assessed up 3% month over month at Eur715/mt ex-works Ruhr.
HDG ex-works Ruhr prices were assessed at Eur725/mt April 2, with both HDG and CRC demand remaining poor amid weaker automotive and OEM purchasing and higher offers being reported.
China’s flat steel market, especially cold-rolled coil, is likely to be supported by robust vehicle manufacturing at least in the first half of 2025, led by domestic fiscal stimulus and a still-strong export market.
The average spread of Chinese domestic CRC prices to hot-rolled coil in Shanghai was Yuan 630/mt ($87/mt) on April 2, higher than Yuan 510/mt a year earlier, Platts data showed. The production cost to roll HRC into CRC is usually around Yuan 400-500/mt.
| Asia, Europe’s large presence in US as passenger vehicle exporters | |||||
| Countries | 2020 | 2021 | 2022 | 2023 | 2024 |
| Mexico | 21,86,483 | 21,34,494 | 22,80,577 | 26,44,089 | 29,61,598 |
| South Korea | 8,73,939 | 8,24,447 | 9,37,354 | 12,42,834 | 15,35,616 |
| Japan | 13,88,923 | 13,34,795 | 12,95,805 | 14,53,815 | 13,77,086 |
| Canada | 11,60,286 | 9,10,519 | 10,10,546 | 12,99,189 | 10,65,465 |
| Germany | 2,78,810 | 2,79,702 | 3,28,671 | 3,90,950 | 4,46,566 |
| China | 36,742 | 50,658 | 64,430 | 69,809 | 1,06,592 |
| United Kingdom | 1,34,081 | 1,29,584 | 81,510 | 73,705 | 96,451 |
| Slovakia | 68,424 | 61,340 | 71,640 | 99,575 | 93,301 |
| Sweden | 69,558 | 78,539 | 74,633 | 84,691 | 87,707 |
| Hungary | 36,629 | 36,981 | 36,381 | 48,482 | 53,828 |
| South Africa | 16,032 | 21,613 | 30,794 | 37,791 | 50,886 |
| Thailand | 19,866 | 20,557 | 19,508 | 17,833 | 35,615 |
| Belgium | 30,663 | 29,897 | 37,120 | 52,517 | 34,179 |
| Italy | 89,743 | 55,154 | 50,969 | 65,113 | 27,649 |
| Volume in units | |||||
| Source: US Department of Commerce, Bureau of the Census, Foreign Trade Division | |||||
Annalisa Villa | Jing Zhang | Market Specialist – Metals | Clement Choo | Lucy Tang | Market Specialist – Metals
HRC prices strengthen within the EU
European domestic hot-rolled coil prices rose April 3 as sources discussed the impact of the latest US tariffs and the underlying bullish supply-side factors driving the market.
Although spot liquidity remained thin, higher mill offers continued to captivate market participants’ attention April 3, as responses to the latest round of US tariffs were largely mixed about the scope of the impact.
In response to higher offers, a mill source, seeing the market closer to Eur650/mt ex-works Ruhr, said, “We had heard some other participants increase their offers by Eur10, but in reality, nobody is paying much higher than that, Eur700/mt seems unreachable, at last, for now.”
A distributor discussing the latest US tariffs shared expectations of a minimal price impact but rather further contributions to the uncertain atmosphere among buyers and traders amid a volatile US dollar. “I don’t think it will have devastating developments, and the EU steel industry will digest this quite easily—maybe we’ll see more emotional reactions or an impact on specialized steel flows, at most,” the distributor said.
In response to higher EU mill offers, the same distributor said, “Eur700/mt [EXW Ruhr] is not workable yet, but the market is moving to a closer balance on industry demand and production as capacity falls.”
Other market participants pointed to hesitancy to buy imports due to the quota risk at the moment amid expectations that, with the lower limits’ prices, the refreshed quarterly quotas will close significantly sooner than in prior quarters despite limited demand.
This is anticipated to add further support to domestic producers, with several midstream buyers suggesting that prices for HRC could hit Eur700/mt and above in Northern Europe in the second half of the year.
Platts, part of S&P Global Commodity Insights, assessed HRC in Northwest Europe at Eur645/mt EXW Ruhr April 3 and HRC in Southern Europe at Eur630/mt EXW Italy, both up Eur5 from April 2.
Platts assessed HRC CIF Antwerp at Eur550/mt and HRC Southern Europe at Eur545/mt CIF Italy, stable with April 2.
UK HRC market sideways as ex-EU offers climb
The UK hot-rolled coil prices remained stable on April 3, as sources pointed to generally higher offers but limited spot inquiries and caution amid an uncertain geopolitical picture.
Offers from European mills increased further in the week, with offers heard as high as GBP570-595/mt DDP West Midlands. Imports from Turkey and South Korea were reported slightly lower, at a range of GBP535-550/mt DDP West Midlands, but with slightly further out delivery timings. Sources stated that there continued to be a large oversupply of material for current demand dynamics.
“There are a lot of new prices which haven’t really made sense,” said one service center source. “It has really slowed down on buyers’ side, we also aren’t buying from traders at the moment due to quota risks.”
Other market participants pointed to additional uncertainty due to the volatility of the US dollar, which is further limiting liquidity in the import market.
One buyer reported increased confidence from industrial applications, but overall referred to typically negative sentiment within the wider market as demand in downstream sectors remained largely weaker.
Platts assessed UK HRC at GBP530/mt DDP West Midlands, unchanged week over week.
Platts is part of S&P Global Commodity Insights.
Tubos Reunidos develops hydrogen distribution pipe
Spanish seamless tube supplier Tubos Reunidos (TR) is developing pipe capable of transporting hydrogen. As part of its participation in the H2Bidea project, the company aims to support the expansion of green hydrogen valleys and industrial decarbonisation in Spain, Kallanish notes.
“We are constantly improving our processes and products to make them more sustainable,” explains TR R&D director Jon Bikandi. “The Group is developing carbon steel piping capable of distributing 100% hydrogen at up to 160 bar, which currently does not exist. This proves that we can reduce our carbon footprint while also driving industrial decarbonisation and building a green value chain for businesses.”
The project is being led by a Basque consortium including Nortegas, Tubos Reunidos, Arizaga, Bastarrica y Compañía (ABC Compressors), Orkli, Comercial de Aplicaciones Electrónicas (Fidegas), and Calcinor Servicios.
Supported by the Basque government’s Hazitek R&D programme and the European Union, the project aims to be completed by 2027, culminating in the H2TESTLAB distribution network demonstration, a dynamic circuit designed to assess damage tolerance in hydrogen-compatible components.
Todor Kirkov Bulgaria
Marcegaglia to revamp cold rolling mill in Gazoldo
Marcegaglia is set to improve its production capacity and broaden its product range by upgrading its 20-Hi cold rolling mill located at the Gazoldo degli Ippoliti facility in Mantua, Italy. The investment will facilitate improvements in efficiency and precision, leveraging automation and digital technologies, the firm says.
Equipment maker Tenova will execute the modernisation works. The project will encompass the integration of Level 1 and Level 2 automation, a Human-Machine Interface (HMI), and Machine Learning applications aimed at improving the efficiency of the rolling pass schedule.
The upcoming revamp will feature the Advanced Roll Cluster Configurator, “an intelligent system that automatically determines the optimal roll sizes for different rolling configurations, ensuring efficient roll management,” Tenova explains in a note seen by Kallanish.
A vibration monitoring system will also be implemented to improve process stability and control. These adjustments will result in higher accuracy, improved process reliability, and increased operational efficiency, it adds.
20-high mills are used for high-speed production of cold rolled strip. “We are confident that Tenova’s expertise in 20-Hi mill technology and digital innovation will help us achieve our goal of restarting the mill with the most advanced rolling models and automation available,” notes Marcegaglia chief technical office Paolo Tenca.
Tenova asserts that the re-roller will set new benchmarks for cold rolling performance and manufacturing flexibility as a result of the revamp. The 20-Hi cold rolling mill is projected to commence operations in 2026.
Natalia Capra France
Stellantis announces tariff-related cutbacks in US, Canada, Mexico
Stellantis is laying off 900 US employees and suspending some production in Mexico and Canada, Kallanish hears from the automaker.
The temporary layoffs will affect workers in Stellantis’ Warren and Sterling stamping plants in Michigan, its Indiana transmission plant, and its Kokomo, Indiana, transmission and casting facilities.
The company says it is responding to US President Donald Trump’s tariff policies, which are causing a temporary closure of two other assembly plants: the Windsor assembly plant in Canada and the Toluca assembly plant in Mexico. Windsor will pause from 7 April and resume operations on 21 April. Toluca will close on 7 April through the end of the month.
On Wednesday, Trump confirmed that automobiles assembled outside of the US will incur a 25% tariff (see Kallanish 2 April).
Stellantis’ North American chief operating officer, Antonio Filosa, emailed employees on Thursday morning to update them about the latest tariffs’ impact on the company’s operations.
“With the new automotive sector tariffs now in effect, it will take our collective resilience and discipline to push through this challenging time,” wrote Filosa. “We are continuing to assess the medium- and long-term effects of these tariffs on our operations, but also have decided to take some immediate actions, including temporarily pausing production at some of our Canadian and Mexican assembly plants. Those actions will impact some employees at several of our US powertrain and stamping facilities that support those operations. These are actions that we do not take lightly, but they are necessary given the current market dynamics.”
Kristen DiLandro USA
Defence spending not seen notably spurring EU plate
Defence has become a hot topic in Europe, being cited as a growing steel consuming sector since US President Donald Trump threatened NATO withdrawal unless the EU increases defence spending. However, except for certain products, the impact on the wider steel market is questionable.
“We have a wide scope of steels for security purposes,” Salzgitter chief executive Gunnar Groebler emphasised recently during the company’s annual press conference. To this purpose, the German company has now established the brand of “Secure” steels, and a “Defence” task force to coordinate further activities in this direction.
The “Secure” steels range mainly involves its tubes and heavy plate unit, but also plate distribution subsidiary Universal.
But while some makers of steel, especially plate, will be able to generate extra sales to the defence industry, the effect on the larger plate market will be minimal, an experienced observer believes. “Europe’s capacity of reversing mill plate is around 10 million tonnes, and less than 1% is sold to defence,” he tells Kallanish. “Even if sales in that direction went up by 50%, it would hardly move the larger market.”
He finds increasing geopolitical insecurity has made defence a fashionable topic, “which mills like to cite, and others like to hear; and it might boost the share price of stock-market listed companies”.
This could be the case for Salzgitter, but also for Kloeckner & Co. The listed distribution/processing group hailed the acquisition last month of a rather inconspicuous German plate processor as a significant expansion of its portfolio for defence purposes.
Meanwhile, Germany’s largest defence supplier, Rheinmetall, has declared it will primarily source German steel in future. The company believes that domestic sources are the safer option when considering security policy, a Rheinmetall representative was cited as saying by newspaper WAZ.
Christian Koehl Germany
EU HRC increases provide import opportunity
European producers’ attempts to raise prices could widen the gap between EU hot rolled coil rates and import prices, causing buyers to boost their import purchases despite duties, Kallanish learns from Italian coil buyers.
Recent adjustments to EU safeguard measures and anti-dumping duties are projected to lead to a reduction of 5-6 million tonnes/year in EU flat steel imports (see Kallanish passim). This includes both hot and cold rolled coil, in addition to coated flat products.
“While their [mills’] narrative is legitimate, the push for price increases for HRC appears speculative. It is supported by protectionist measures instead of real consumption and market demand, which remains notably weak,” an Italian service centre comments.
ArcelorMittal is reported to be raising its HRC prices in northern Europe to €700/tonne ($773) delivered, while seeking €680/t delivered in southern EU countries. Numerous European steelmakers are aiming for similar levels, but service centres are facing significant challenges in increasing their prices and are reporting low margins and non-existent profitability.
“The current demand levels are significantly weak,” another service centre notes. “We are experiencing pressure from rising prices from HRC producers, while simultaneously facing a downturn in sheet and strip prices.” He notes that at €700/t delivered, EU producers are merely widening the gap with import prices. Values from countries like Indonesia or Malaysia range between €540-550/t cfr Europe.
The market is currently assessing the level of duty buyers will pay for material imported outside of quotas following the renewal of quotas on 1 April. Ports are experiencing congestion for HRC and particularly hot-dipped galvanised products from Vietnam, as Vietnam’s quota allocation has been exceeded. During the previous quarter, buyers were subject to duties ranging from 8% to 10%.
“Achieving margins of €50-60/t is vital for us,” the source comments. Should European prices hit €700/t, buyers would find imports priced at €550/t cfr to be financially viable. Even after accounting for duty, import prices would still be lower than European prices.
“There is a necessity for price increases across the entire value chain; however, we are currently not observing any upward movement downstream. There are no indicators of improvement from our clients. The automotive and appliances sectors are underperforming significantly,” he concludes.
Should EU prices rise, sources such as Turkey, currently presenting offers in the range of €590-600/t duty paid, will regain their appeal. Additionally, suppliers from India are reportedly providing offers at €580/t cfr. Re-rollers are facing challenges in raising prices, in line with service centres. Hot rolled sheet is priced at €700/t delivered, although a lower rate of €680/t is also accessible.
Italian domestic HRC is reported to be in the range of €630-640/t delivered, according to sources.
Natalia Capra France