EU steel industry urges new trade defense measures, scrap retention
Representatives from the steel and metals industry raised strong concerns about the broader ramifications of US tariffs, including impacts on derivative products and the serious risk of trade diversion, during a high-level dialogue hosted by European Commission President Ursula von der Leyen on April 7. The meeting aimed to discuss the implications of US tariffs on steel, aluminum, and related derivative products, the EC said.
The meeting focused on gathering industry views and proposals for the most effective EU response to the US measures.
While the representatives welcomed the EC’s Steel and Metals Action Plan and the Clean Industrial Deal, they also suggested implementing a few points.
EUROMETAL, the association of traders and EU service centers, suggested using public procurement to prioritize EU-based steel content while supporting local manufacturing and innovation, particularly in sectors essential for the green transition and EU defense capabilities, EUROMETAL said in a letter sent to its members seen by Platts, part of S&P Global Commodity Insights.
The industry called for new trade defense measures for steel, beyond existing safeguards set to expire in June 2026, to counter potential export deflection from other major steel-producing countries. Participants also expressed concern about diminishing scrap volumes used for recycling in the EU and requested effective measures to retain sufficient volumes within the EU. They also underlined the importance of local content requirements, notably pointing at the huge potential of public procurement in this regard.
Additionally, participants supported the accelerated review of the Carbon Border Adjustment Measures to address remaining loopholes.
“President von der Leyen sent a clear signal: keeping aluminum production and recycling in Europe is critical to our continent’s future,” European Aluminium General Director Paul Voss told Platts on April 7 while commenting at the meeting. “We welcome this recognition at the highest political level and look forward to quick and effective action to stop scrap leakage, strengthen trade defense, and address the impact of US tariffs,” he added.
EUROMETAL also emphasized the strain on US downstream industries and logistics operators, which are already grappling with inflationary pressures on imported products and declining transport margins. With the US steel market being 25%-30% import-dependent, these protectionist measures could inadvertently undermine US competitiveness, contradicting their intended purpose. This context was vital for transatlantic negotiations moving forward.
Although Europe sends more goods to the US than it receives, the situation is different when it comes to services. This indicates that the service sector, especially in technology, could be the primary channel for Brussels to respond effectively.
Blastr inks Vogten Staal deal for low-carbon steel supply
Blastr Green Steel has signed a memorandum of understanding with Vogten Staal, a European steel service center, for the annual supply of its low-carbon steel, the Norwegian company stated on April 7.
The agreement with Vogten will enable Blastr’s low-carbon steel to reach more sustainable metal users and grant access to Vogten’s steel refinement services, including hot-rolled material pickling. The two companies did not disclose the volumes of the agreement.
Vogten’s production lines are located in Maastricht, the Netherlands. The company recently invested in a second production facility. When all new lines are installed, the annual production capacity of both facilities will be over 1 million mt, divided over three cut-to-length lines, two push-pull pickling lines, a slitting line and four shears.
Blastr is planning a direct-reduced iron, or DRI-EAF steel plant with an integrated green hydrogen production facility to produce 2.5 million mt of low-carbon steel in Inkoo, Finland. It is currently looking for the DRI location and exploring building it in the UK, a spokesperson told Platts, part of S&P Global Commodity Insights, on Feb. 3.
“The collaboration between Blastr and Vogten Staal reflects strong growth in demand for high-quality decarbonized steel in European markets,” Mark Bula, CEO of Blastr said.
“We are proud to partner with one of Europe’s leading steel service centers, which shares our commitment to mitigating climate change by making green steel available to a growing pool of customers,” Bula added.
This is the third offtake low-carbon supply agreement announced by Blastr in less than four months.
Platts assessed Northwest European hot-rolled coil carbon-accounted stable at Eur710/mt ex-works Ruhr on April 4.
EUROMETAL voices key industry concerns in high-level EU Consultation on US Tariffs
At the invitation of European Commission President Ursula von der Leyen, EUROMETAL took part today in a high-level virtual consultation addressing the implications of the recently announced U.S. tariffs on steel, aluminium, and related derivative products—including those originating from the European Union.
The meeting convened key stakeholders from across the European steel and metals value chain, including EUROMETAL, EUROFER and ESPA. Discussions focused on assessing the expected fallout from the new U.S. protectionist measures and shaping a strategic EU response to ensure the resilience and competitiveness of Europe’s steel industry.
EUROMETAL’s Contribution
Representing Europe’s steel distribution, processing, and trading sectors, EUROMETAL made two key interventions during the consultation:
1. U.S. Downstream and Logistics Impact
EUROMETAL highlighted emerging pressure on U.S. downstream industries and logistics operators, pointing to inflationary trends in imported steel prices and declining transport margins. With the U.S. steel market depending on imports for 25–30% of its needs, the newly announced tariffs risk undermining U.S. industrial competitiveness—contrary to their intended goals. EUROMETAL stressed that this broader context must be taken into account during transatlantic trade negotiations.
2. Strengthening the Steel and Metals Action Plan
While welcoming the European Commission’s Steel and Metals Action Plan (effective 1 April 2025), EUROMETAL called for a broader, more robust strategy to support the EU steel value chain, including:
- Strategic use of public procurement to prioritise EU-based steel content;
- Expansion of safeguard and tariff measures to include derivative products under TARIC codes 73, 85, and potentially 84 and 94;
- Greater support for local manufacturing and innovation, especially in sectors critical to the green transition and EU defence capabilities.
Commission’s Takeaways and Roadmap
President von der Leyen concluded the consultation with a clear set of follow-up actions aimed at reinforcing Europe’s steel sector in response to the evolving global trade environment:
- Launch of a new Import Surveillance Task Force,
- Early preparation of post-safeguard measures,
- Inclusion of steel derivatives in EU trade defence instruments,
- Reinforced local content requirements,
- Expanded application of the Carbon Border Adjustment Mechanism (CBAM),
- Stronger integration of defence production into the EU industrial strategy.
The official readout from the European Commission further emphasised the sector’s concerns over the impact of U.S. tariffs, the risk of trade diversion, and the need to maintain sufficient volumes of scrap for domestic recycling. Industry representatives strongly supported the fast implementation of the Steel and Metals Action Plan and the Clean Industrial Deal, while calling for new trade defence instruments to counter potential deflection of exports from other major steel-producing nations.
EUROMETAL will remain actively engaged with EU decision-makers in the weeks ahead as the Steel and Metals Action Plan is rolled out and additional measures are developed. Our continued focus is to ensure that Europe’s steel value chain remains resilient, innovative, and globally competitive in an increasingly uncertain trade environment.
NovaMar Logistic: a new alliance to optimize steel logistics
Marcegaglia and Nova Marine Carriers launch a new joint venture to streamline maritime transport, cut environmental impact, and secure supply chains amid growing global uncertainty.
A new partnership is reshaping the European shipping and logistics scene.
Marcegaglia, one of the world’s leading steel producers, has joined forces with Italo-Swiss shipping group Nova Marine Carriers to create NovaMar Logistic, a Maltese-based joint venture. Developed with support from OD Shipping—Marcegaglia’s long-time brokerage partner—the project was officially unveiled with the signing of Antonio and Emma Marcegaglia, Vincenzo Romeo (CEO of Nova Marine Carriers), and Mario Bernacca (CEO of OD Shipping).
NovaMar Logistic will manage the Sider Luck, a 26,300 dwt vessel tasked with transporting raw materials from supply ports to Marcegaglia’s key manufacturing plants in Ravenna and Fos-sur-Mer. The move is designed to optimize shipping operations, enhance sustainability, and reduce the environmental impact of steel logistics.
“With this new venture, we are strengthening our long-standing relationship with Nova Marine in a sector – maritime transport – that is critical to the competitiveness of the steel industry,” said Antonio Marcegaglia, CEO of Marcegaglia Steel.
“In today’s world of conflicts, geopolitical instability, and rising protectionism, securing resilient, structured supply chains is essential to maintaining competitiveness.”
Vincenzo Romeo, CEO of Nova Marine Carriers, described NovaMar Logistic as “the natural evolution of a partnership that has lasted over a decade,” emphasizing the value of combining two companies that have both achieved significant growth while maintaining strong family leadership.
Mario Bernacca of OD Shipping highlighted the project’s sustainability dimension. “This is not a first-time initiative. We successfully tested this model in the past. Using the same vessel, we moved more than 700,000 tons of steel, significantly cutting emissions compared to smaller ships and reducing pressure on road transport. It’s a textbook example of leveraging ‘motorways of the sea’ for greener logistics.”
By integrating industrial production and shipping more closely, NovaMar Logistic aims to offer a more efficient, sustainable approach to maritime transport, addressing the growing need for resilient and environmentally responsible supply chains.
China’s non-VAT exports face strict control
China’s non-VAT exports are facing sporadic customs investigations and debt collection, quietly reshaping the export market. With the announcement of an electronic export goods declaration system and multi-department joint management, the market expects that this form of export will almost disappear soon, Kallanish notes.
In the past few years, Chinese steel exporters gain price advantages by evading VAT-payment, thereby increasing their competitiveness in overseas markets. The practice intensified last year, achieving a sharp increase in annual export volume. Last year’s steel exports thus hit the second highest in history.
The essence of the operation is that steel mills use shell agents to export steel, but agents do not pay the 13% VAT that should be paid to the domestic tax department during the receipt and export stage. In the past year, this usually has meant that exports through this route are about $15-20/tonne lower than normal exports.
On 28 March, the State Administration of Taxation, the Ministry of Finance, the Ministry of Commerce, the General Administration of Customs and the State Administration for Market Regulation jointly issued a document aiming at strengthening the standardised management of export goods that should pay domestic taxes, including VAT.
The document targets non-VAT exports. The lead of the State Administration of Taxation represents that this is actually a tax evasion problem. The joint participation of other departments not only ensures that supervision is in place, but also means that disciplinary measures will be in place.
Later, the Taxation Bureau of Shenzhen, a city where such illegal export agents are concentrated, issued a notice on Tuesday of a case investigating and punishing non-VAT exports. The goods illegally exported by 10 shell companies included ferrochrome. The total tax collection reached CNY 270 million ($37m).
Some market participants said that some illegal steel exports were investigated by the government at the ports of Jingtang and Tianjin. However, many market participants in Beijing and East China said that the follow-up measures are still unknown. These signals caused Chinese exporters to quickly cancel their non-VAT quotations this week, helping to improve the overall level of export prices.
However, it is not feasible to conclude that such investigations are on the rise at this time. As early as April last year, the authorities often stated that they had successfully investigated and fined illegal non-VAT exports.
For the near future, the disappearance of non-VAT exports is likely to be an issue in May. On 27 March, the General Administration of Customs issued a new version of the import and export goods declaration management regulations. The replacement of paper declarations with electronic data declarations and stricter confirmation processes will effectively plug this loophole.
Affected by this, a large number of signed orders are struggling to advance the shipping date of goods to April, or directly cancel the contract to avoid future risks.
“This is good for prices to grow,” an exporter says. “The disappearance of unreasonably low prices will also make market competition more reasonable.”
Steel mills will not be implicated if the government decides to investigate and punish past violations. Steel mills’ goods were legal before and at the time of arrival at the agents as long as they do not participate.
“Steel mills have insulated themselves from risk,” a Beijing-based market player commented on Thursday.
SSAB expands production at Italian service centre
SSAB Swedish Steel’s service centre in Ghedi, Italy, is set to expand its production of cut-to-length sheets in higher strength grades while also improving quality.
The steel producer is to upgrade its cut-to-length (CTL) line to start production of higher strength steels with the aim to respond to current and future market demand, Kallanish learns from the company.
The initiative will allow the service centre to provide cut-to-length sheets of enhanced strength grades from coils, including most hot-rolled strip Hardox abrasion-resistant steels and Strenx structural steels.
The current facility processes coils with yield strengths of 700MPa or lower. The works will elevate the capacity to 1350MPa with a thickness of 6.5mm, enabling the cutting of ultra-high strength SSAB coils to any desired length, resulting in enhanced surface quality and flatness.
“The upgraded capacity means SSAB will ship a greater range of steels to Italy as coils, which is faster and more efficient than shipping cut lengths in packaged bundles from Sweden,” a company note says.
It adds that the Ghedi facility, which has a 80,000t/year capacity, will also be better able to handle low-to-mid production volumes in higher strength grades for a variety of sheet lengths.
“The Ghedi cut-to-length (CTL) line can already handle coils as wide as 2050mm, assuring compatibility with SSAB’s future mini-mills, which will be able to produce coils up to 2-meters wide.”
According to FIMI Machinery, which will carry out the upgrade, Ghedi customers are going to notice immediate improvements in their cut steel sheets.
“With three new brushing machines connected to a filtration system, the scale (iron oxide) produced by the straightener and levellers will be extracted to protect workers, machinery, and the environment. There will be less imprints on the surface, which means improved surface quality. And due to better stress removal, the sheets will be flatter, which is key for SSAB Laser grades,” they said,
The upgrade for 2025 is planned to coincide with the centre’s standard maintenance window, which spans from July to September. The equipment is projected to be operational in autumn this year.
Natalia Capra France
European merchant market projected to hold steady
Merchant bar prices in Western and Southern Europe are stable compared to last month, with some producers now considering increases amid elevated production costs and rising scrap prices.
Some market participants in France, Spain, and Italy contend that passing on increases downstream is challenging, as consumption remains constrained in Europe. This situation is offset by a more robust demand from Eastern European countries.
A leading steel producer tells Kallanish that while volumes in Europe remain average, margins have significantly deteriorated since the latter half of 2023.
The elevated energy prices, particularly in Italy, along with high scrap values, continue to exert pressure on profitability.
Meanwhile, the reduced sales volumes are adversely affecting the European distribution sector, which is experiencing extremely low margins.
The financial performance of several major distributors in France and Italy that previously relied on volume sales has been significantly impacted by the decline in long steel products and rumours of payment delays are spreading.
European producers have capitalised on the closure of Ostrava, identifying a market gap that enabled them to reclaim the market share previously held by the steelmaker.
Currently, France and Spain have the lowest pricing in Europe, ranging from €240-260/tonne base delivered ($263-285/t). In contrast, Italy presents the highest prices, with a base delivered rate of €280-290/t excluding the average size extras priced at €420/t. Spanish producers are present in Italy, with a notable concentration in France.
The current conditions in the downstream market are hindering price increases, as diminished consumption and narrow margins restrict any upward movement to only marginal adjustments.
The tariffs imposed by the US are impacting producers only to a slight extent, while the prevailing geopolitical uncertainty is leading buyers to purchase limited quantities on a more frequent basis.
In Italy, distributors continue to buy truckloads that have already been pre-sold. In Italy, there was a restocking phase observed in March, amid a moderate resurgence in apparent demand.
However, a producer source indicates that if distributors do not sell their past purchases, they will begin to destock, leading to a slowdown in demand this month.
Eastern European nations are actively supporting demand and establishing consistent purchases. Germany’s recently announced €500 billion ($552 billion) infrastructure fund may yield some positive outcomes; however, another source presents a more cautious perspective on these potential impacts. The allocation of funds is projected to occur over ten years, ultimately representing less than 2% of the nation’s GDP.
Merchant bar price trends are expected to stabilise in April, a month characterised by reduced activity due to various public holidays.
Meanwhile, the projections for volumes in 2025 present a neutral outlook, lacking both optimism and pessimism. Sales volumes for producers are projected to stabilise at the levels observed in 2024. Short-term projections indicate that margins are likely to experience continued pressure.
Natalia Capra France
European HRC producers seek higher prices; buyers cautious amid lack of real demand
On Tuesday April 1, leading European steelmaker ArcelorMittal increased HRC prices by another €20 per tonne to €700 per tonne ex-works or delivered, Fastmarkets reported.
Later in the week, other suppliers followed the move with smaller increases, with offer prices for June-July delivery HRC in Northern Europe reported at €660-670 per tonne ex-works — in Germany and the Benelux area.
Buyers, however, estimated achievable prices at 640-650 per tonne ex-works.
“HR sheet prices are still too low to pay even €650 [per tonne ex-works] for HRC. We had a few weeks with a pick-up in orders, [but] now it’s getting quieter,” a German distributor said.
Another distributor source agreed that the current uptrend was not demand-driven, but mainly driven by trade defense measures.
“European mills are well-booked for the second quarter and import availability is limited due to safeguards and anti-dumping measures. It’s a sellers’ market now, so prices are likely to keep ticking up,” a second distributor said.
Sources, however, were worried about the long-term outlook, given the still-weak demand from key steel-using sectors and possible deterioration in demand from the already-struggling automotive sector, which is being impacted by Trump’s tariffs.
“So far, the volumes [of flat steel] taken by the automotive [sector] are not bad, but global markets remain unpredictable,” a mill source said.
Fastmarkets calculated its daily steel hot-rolled coil index domestic, exw Northern Europe at €651.83 ($718.30) per tonne on Friday, up by €1.33 per tonne from €650.50 per tonne on Thursday April 3.
The Northern European index was up by €6.83 per tonne week on week and by €22.79 per tonne month on month.
Meanwhile, in Southern Europe, Fastmarkets’ daily steel hot-rolled coil index domestic, exw Italy was calculated at €627.50 per tonne on Friday, up by €2.50 per tonne from €625.00 per tonne on Thursday.
The index was up by €2.50 per tonne week on week and by €9.17 per tonne month on month.
HRC prices in Italy were not showing the same growth momentum as in Northern Europe lately, due to muted downstream demand and relatively high stocks at buyers, sources said.
The latest offers heard from Italian suppliers were at €630-650 per tonne ex-works, but buyers were still estimating the tradable market level at €620-630 per tonne ex-works, sources told Fastmarkets.
However, a major supplier withdrew offers from the market on Thursday and was expected to come back with higher prices shortly, sources said.
In the secondary market, 4 mm HR sheet was on offer at €700-720 per tonne CPT, and sales were “not booming.”
Overseas coil offers to Italy were broadly unchanged.
Asian suppliers were heard offering HRC to Italy at €550-570 per tonne CFR for May shipment.
An Indian supplier was offering HRC to Europe at €590 per tonne CFR for May shipment.
Turkey continued to offer May-shipment HRC at €590-600 per tonne CFR, including anti-dumping duty.
Italian rebar prices edge up on improved sentiment; Spanish prices flat
Meanwhile, in the Southern European wire rod market, prices remained broadly stable on Wednesday, sources added.
Fastmarkets’ weekly price assessment for steel reinforcing bar (rebar) domestic, exw Italy was €585-640 ($644-704) per tonne on Wednesday, up by €10 per tonne from €575-630 per tonne on March 26.
Small increases in offers and trades were reported in the Italian rebar market, according to sources.
“The Italian rebar price is increasing in terms of both offers and tradeable levels. Demand had been good last week, but now customers are in wait and see mode. We will wait for the first days of April to see if producers will be able to consolidate the uptrend,” a buyer source told Fastmarkets.
First-hand deals were reported across the Italian rebar market at €585-640 per tonne EXW.
Producer levels were reported at €585-615 per tonne EXW, while other sources in the market indicated higher price levels of €610-655 per tonne EXW.
At the same time, small-tonnage exports of rebar were reported from Southern Europe to Western Europe at €590 per tonne FOB.
Fastmarkets’ weekly price assessment for steel reinforcing bar (rebar), domestic, delivered, Spain was €620-640 per tonne on Wednesday, unchanged since March 12.
Fastmarkets’ weekly price assessment for steel wire rod (mesh quality), domestic, delivered Southern Europe was €605-620 per tonne on Wednesday, widening down by €5 from €610-620 per tonne on March 26.
“We have seen some small improvements in demand and outlook. Domestic scrap costs are high and in certain categories of scrap we have seen considerably lower availability, and it was not easy to find what we needed,” a wire rod producer source told Fastmarkets.
Fastmarkets’ monthly price assessment for steel scrap E40 shredded, delivered to mill Italy was €340-365 per tonne on March 28, up from €330-350 per tonne on March 3.
Italian domestic scrap costs have been increasing since the beginning of the year, sources said.
Energy costs are decreasing, however, compensating for higher feedstock costs, according to the wire rod producer source.
Participants saw signs of an improvement in demand in the wire rod market.
But they also noted that there is minimal appetite for imported wire rod in the Southern European market.