Hoberg & Driesch, Mannesmann Precision Tubes intensify collaboration
German steel tubes distributor Hoberg & Driesch and Salzgitter AG’s tubemaking subsidiary Mannesmann Precision Tubes have agreed to step up their long-standing partnership.
The move follows Hoberg & Driesch’s acquisition of parts of the tube distribution business from Salzgitter Mannesmann Stahlhandel GmbH.
The objective of the intensified collaboration is to further optimise the interaction between manufacturer and distributor, especially in the field of precision tubes, Hoberg & Driesch says. The partners plan to work together more closely on both stockholding and project business for end customers.
“Together, we can further develop both the stockholding business and end-user project business in a targeted manner, allowing us to offer even more tailored solutions,” says Hanns-Jörg Westendorf, chief executive of Hoberg & Driesch.
The company operates ten locations in 13 countries, with an inventory of 90,000 tonnes.
Thyssenkrupp could sell Materials Services division
Germany’s thyssenkrupp AG is rumoured to be considering divesting its steel and materials distribution division, thyssenkrupp Materials Services.
The multi-industries group has for years strived to separate from its steel production division, tk Steel Europe. It is now in the process of selling a 50% stake in tk Steel to Czech group EPCG, which has already acquired 20%.
While tk Steel Europe has long been a problem child for the group, tk Materials Services has been performing reasonably well. It is one of the biggest steel distributors in Europe and beyond, with more than 300 sites across all continents, and an order volume of €12.1 billion ($13.5 billion) in the last fiscal year.
Good earnings in its international supply chain business led to an increase in adjusted Ebit last fiscal by 15% to €204 million. Tk Steel, on the other hand, posted negative Ebit of €770m.
If true, the divestment would sever thyssenkrupp’s ties to its history as a steel company, but would also generate cash for the other miscellaneous activities of the group.
Speculation over the sale was reported by Bloomberg earlier this week. In a statement sent to Kallanish, thyssenkrupp AG did not confirm the plan but did not explicitly deny it either.
A German industry observer tells Kallanish he heard of the rumour weeks earlier, with €2 billion touted as a target price, The price is fair in view of the division’s assets, he notes. Although he doubts the offer would lure too many bidders, he has heard of interest being expressed by Asian companies.
Turkish exporters must heed EU trade adjustments
Turkish steelmakers must remain alert and adaptive to an EU trade landscape that is rapidly evolving and aiming to achieve sustainability and fair competition. This includes new carbon regulations, evolving trade defence instruments (TDIs), and tighter origin rules, according to Van Bael & Bellis trade law expert Fabrizio Di Gianni.
The EU’s Clean Industrial Deal (CID) aims to make decarbonisation economically viable, targeting energy-intensive sectors like steel. Central to this initiative is the Carbon Border Adjustment Mechanism (CBAM), which will replace free allowances under the EU Emissions Trading Scheme (ETS) starting in 2026.
CBAM will impose carbon costs on imports into the EU, increasing the cost burden on carbon-intensive products while targeting practices such as product modifications and carbon “greenwashing”, Di Gianni said at this week’s EUROMETAL Steel Day and 10th YISAD Flat Steel Conference in Istanbul attended by Kallanish.
A full CBAM review is expected in the second half of 2025, which may expand the mechanism’s coverage and ease administrative burdens for small and medium-sized firms, while still accounting for over 99% of emissions.
The CID also includes a Steel and Metals Action Plan focused on six pillars, including carbon leakage prevention, innovation, and competitiveness. Alongside CBAM, the EU is ramping up trade defence enforcement – intensifying market surveillance and preparing to launch AD/CVD investigations based on potential injury, rather than proven harm. A revision of the Lesser Duty Rule is also on the table, potentially enabling higher tariffs, Di Gianni noted.
Additionally, safeguard measures have been tightened, significantly affecting Turkish exports, particularly in high-impact product categories like 1A (hot rolled coil) and 5 (organic coated steel).
Among the most significant developments are proposed changes to origin rules. Traditionally, origin has been determined based on the last substantial transformation of a product. However, the EU is now considering a shift to a “melted and poured” regime, where the origin would be linked to the initial smelting location.
For example, Chinese-origin HRC processed into final goods in Turkey could still be classified as Chinese for TDI purposes. This would undermine traditional global value chains and poses serious challenges for Turkish steel processors, Di Gianni commented.
He also emphasised the EU’s staged sanctions framework means steel products processed from Russian materials face growing restrictions. Turkish companies must carry out enhanced due diligence in sourcing and exports to avoid becoming involved – knowingly or unknowingly – in activities considered circumvention under EU sanctions legislation.
As of 1 April 2024, imports into the EU are banned if Russian-origin billet has been transformed into steel rod (HS 7215) and then into steel wire (HS 7223). From 1 October 2028, the ban will extend to HRC of alloy steel (HS 7225 and 7226) and steel tubes (HS 7306) processed from Russian slab.
However, not all forms are covered. Russian-origin pig iron transformed in Turkey from slab is currently exempt and may still be imported.
These sanctions bring additional compliance risks for Turkish companies, particularly related to inadvertent circumvention via transshipment or supply chain diversion, Di Gianni noted.
Restrictions on scrap exports are also under consideration by the EU, which could limit third-country access to EU scrap.
Assofermet: Italian steel market’s weak recovery in March disrupted by tariffs
March and the first days of April were characterized by strong uncertainty in the Italian steel market due to the introduction of import tariffs by the US. This is what emerges from the monthly analysis of Assofermet Acciai, the steel division of Assofermet, the association representing Italian distributors of scrap, raw materials, and steel products.
Starting from flat products, Assofermet described an uptrend in March. The slight recovery of consumption, however, has been jeopardized by the possible outcome of a global trade war. Moreover, new EU safeguard policies – which hamper steel inflow into the territory – may divert import volumes, hence generating possible price increases. “Since they are dealing with low demand, we have yet to understand if finished steel users will be able to support such rises without losing competitiveness in the international market,” Assofermet stated. End-users’ sales volumes, in fact, are still suffering from the automotive and white goods crisis, and there are no signs of a possible recovery in the month of April.
In the stainless steel segment, both longs and flat products are experiencing low levels of demand. Offers, however, are still abundant and this keeps prices under pressure. Nonetheless, Assofermet reports weak signals of stabilization, which could suggest a gradual rebalance. The scenario is rather complicated, Assofermet concluded, but “it offers some ease for those who will be able to be resilient to the market’s evolutions”.
As for warehouses, March recorded a negative performance overall, with the exception of seamless pipes. Steel sheets, on the other hand, seem to be the most affected category. The prospects, unfortunately, are not bright: with the introduction of new tariffs by the United States, some sectors such as mechanics could decide to revise their investment plans by reducing the volumes purchased in the face of a foreseeable drop in turnover due to the reduction in exports.
Finally, in the tinplate segment, there was a recovery in demand in Europe due to the introduction of a 20 percent cap for each country in the “Other Countries” quota. “Some tin coating plants, which remained inactive throughout last year, are gradually returning to full operation,” Assofermet reported.
Romania’s Liberty Galati plans to restart BF No. 5 in late April
Following the loan received from the government, Romania-based Liberty Galati plans to restart its blast furnace No. 5 on April 22 after the Easter vacation.
The mill was shut down for maintenance and has remained closed due to poor market conditions since the beginning of summer last year.
“Together with a strong and dedicated team of steelmakers, we are preparing to restart production operations, which is a real challenge, as the steel industry is facing the most difficult market conditions I have encountered throughout my career, comparable to the 2008 financial crisis and the 2015 steel industry crisis. However, we know how important Romanian steel is for the national economy and for the community in Galați, which is why we are making every effort to ensure the steel needs of Romania’s strategic industries. With the support of the team, I am confident that we will restart primary production operations after Easter, on April 22,” said Cornel Moisescu, head of primary at LIBERTY Galați.
Furthermore, according to sources, Liberty Galati has started to collect flat steel orders for May production. However, most purchasers are hesitating to buy because of the uncertainty that has persisted for months.
Romania’s rebar spot prices rise further, but sole rebar producer’s prices remain firm
This week, the upward trend in Romania’s rebar spot market has continued, while the sole Romanian sole rebar producer and the wire rod spot segment have kept offers stable from the previous week.
Although the start of the new EU quota period resulted in a rise in pricing, especially in the rebar segment, this increase did not translate into increased demand and trading volumes remain limited in the domestic market.
According to market participants, as the Easter weekend approaches, prices may fall slightly since purchasers, seeing big price increases, are less likely to want to buy at the current prices.
The sole domestic mill’s rebar price is stable week on week at €590-605/mt ex-works. On the other hand, Romanian rebar traders have increased their offers by €10-25/mt week on week to €610-630/mt ex-warehouse.
In the wire rod market, many traders have maintained their pricing at €580-595/mt ex-warehouse from last week as demand has remained unsupportive of an increase.
Meanwhile, in the import market, while most offers remain flat and no purchases have been concluded since last week, Bulgarian suppliers have increased their offers. According to sources, Bulgaria has raised rebar offers to roughly €635-640/mt CPT, up from €610-620/mt CPT last week.
However, Egyptian suppliers have kept rebar and wire rod prices unchanged week on week at €550-555/mt CPT and €560-565/mt CPT, respectively. Furthermore, Greece’s rebar and wire rod offers remain stable week on week, at €620-625/mt CFR and €610-615/mt CFR, respectively.
In contrast, this week Turkey’s average rebar price has fallen by €10-15/mt to €540-560/mt CFR Romania, based on a €1 = $1.11 exchange rate and freight costs of around €25-30/mt.
European HRC prices largely unmoved; higher offers not yet sealed in deals
Steelmakers in Northern Europe were offering June-July delivery coil at €670-700 ($744-777) per tonne ex-works.
Italy-origin coil was offered to Germany at €680 per tonne delivered.
Offers, however, were still above tradable values reported by buyers sources mainly at €640-650 per tonne ex-works on Thursday.
As a result, Fastmarkets calculated its daily steel hot-rolled coil index domestic, exw Northern Europe at €654.58 per tonne on Thursday, up marginally by €0.83 per tonne from €653.75 per tonne the previous day.
The Northern European index was up by €4.08 per tonne week on week and by €22.70 per tonne month on month.
Trading in the spot market was limited so far, with buyers only booking minimal tonnages to cover urgent needs.
“There has been muted trading for months. Buyers say their stocks are low, but in line with current demand,” a steel-service center source in Germany said. “if demand picks up slightly and/or supply decreases, and buyers need more [HRC], then prices can potentially go up more.”
“So far, demand-supply balance is ok. Lower production at Salzgitter, the three-month maintenance at [ArcelorMittal] Dunkirk and lower imports due to trade measures [are supporting] local prices. But real demand remains a problem,” a mill source said.
At the same time, ongoing volatility, created by the US tariffs, was casting shadows on real demand developments in the longer run.
“The impact of the US tariffs are unforeseeable because it changes every day, and one single tweet can turn the markets topsy-turvy overnight. If automotive tariffs remain in place, weaker automotive consumption might bring more tonnages to the spot market,” a buyer said.
In Southern Europe, Fastmarkets’ daily steel hot-rolled coil index domestic, exw Italy was calculated at €631.25 per tonne on Thursday, unchanged from the previous day.
The index was up by €6.25 per tonne week on week and by €11.25 per tonne month on month.
Offers for HRC with around five weeks lead times from one local supplier were reported at €660-670 per tonne delivered (€650-660 per tonne ex-works).
Another supplier was aiming for €630 per tonne ex-works, sources said.
Estimation of tradable prices from buyers was still reported at €620-630 per tonne ex-works.
A European mill was offering June-delivery coil to Italy at €700 per tonne delivered. But some sources said it was possible to get €680 per tonne delivered for larger tonnages.
The market for imported coil was largely quiet, with only few offers heard to Italy amid safeguard amendments and anti-dumping measures.
From India, HRC offers India to Italy were reported at €580-590 per tonne CFR.
Turkey continued offering HRC to Italy at €580-600 per tonne CFR, including the anti-dumping duty.
Improved demand reported in Italian rebar market; Spanish rebar market stable
Lower energy costs and more favorable weather conditions supported more bullish sentiment in the Italian rebar market. Despite improved sentiment, mills were unable to establish higher offers in the market.
Reduced energy costs and stable scrap prices since the beginning of April contributed to a resistance to significant increases, Fastmarkets heard.
As a result, Fastmarkets’ price assessment for steel reinforcing bar (rebar) domestic, exw Italy was €590-630 ($650-694) per tonne on Wednesday, narrowing from €585-640 per tonne on April 2.
First-hand deals were reported across the Italian rebar market at €590-620 per tonne ex-works.
Producers’ assessments were reported at €590-620 per tonne ex-works.
Sources reported higher mill offers of €620-630 per tonne ex-works, but the market had not yet entirely accepted these prices.
Other sources in the market indicated higher assessments of €610-650 per tonne ex-works, but prices above €630 per tonne were not considered workable by the wider market.
“Demand has been good last week and the beginning of this week, but towards the end of the week, demand has slowed down,” a buyer source told Fastmarkets.
“The contracts closed at the beginning of April by the major fabricators, and prices were at €610-620 per tonne ex-works. This week, for new orders, mills are seeking €620-630 per tonne ex-works,” a second buyer source told Fastmarkets.
Turkish import scrap prices have been stable since the beginning of April amid limited finished steel sales in the country’s domestic and export markets.
Turkish mills were reported to be struggling with weak finished steel sales and downward pressure on prices due to recently announced tariffs.
As a result, Fastmarkets’ calculation of its daily index for steel scrap, HMS 1&2 (80:20 mix), North Europe origin, cfr Turkey was $375.05 per tonne on Wednesday, stable week on week.
Meanwhile, small-tonnage rebar exports were reported from Southern Europe to Western Europe at €590-600 per tonne FOB to France and Switzerland. Rebar exports to Greece for small tonnages were reported at €620 per tonne FOB.
Fastmarkets’ price assessment for steel reinforcing bar (rebar), domestic, delivered, Spain was €620-640 per tonne on Wednesday, stable week on week.
Fastmarkets’ price assessment for steel wire rod (mesh quality), domestic, delivered Southern Europe was €590-620 per tonne on Wednesday, widening downward by €15 per tonne from €605-620 per tonne on April 2.
Most market participants continued to report prices of €605-620 per tonne, but some sources heard lower offers available in the market for larger volumes.
In Southern Europe, wire rod imports from Turkey were reported as low as €560 per tonne CFR as a result of duties that customers would have to pay.
Turkey’s import quota was reportedly filled in its first day, meaning that importers will now have to pay duties on any imported wire rod from Turkey.
Import offers from lower-risk countries to Southern Europe were reported at €580-590 per tonne CFR.
Green Steel: buyers more willing to pay premiums for flats rather than longs
Green flats
Fastmarkets’ weekly assessment of the green steel, domestic, flat-rolled, differential to HRC index, exw Northern Europe was €150-200 ($220-330) per tonne on April 10, flat week on week.
Fastmarkets’ methodology defines European green flat steel as “steel produced with Scope 1, 2 & 3 emissions at a maximum of 0.8 tonnes of CO2 per tonne of steel.”
For steel that falls under such specifications, offers from major European suppliers were stable at premiums of €200-300 per tonne. Offers at the higher end of the range were mainly reported from Nordic-based suppliers.
These offers have been broadly stable in the past months, but tradable premiums for the spot market were lower, sources said.
During the assessment week, minor tonnages were traded at a premium of €200 per tonne in Northern Europe.
The latest transactions for green flat steel were reported in March at premiums of €170-180 per tonne for volumes over 1,000 tonnes, sources said.
Buyer sources told Fastmarkets they estimated that achievable premiums for green steel with that level of emissions would be closer to €100-200 per tonne.
Some bids were even reported at premiums of €70-80 per tonne during the week, but suppliers said that such premiums would be acceptable for steel produced with higher CO2 emissions content.
“[A premium of] €70 per tonne is for steel with an emissions threshold of around 1.5 tonnes of CO2 — some suppliers in Europe offer steel with such emissions exactly at such levels,” a mill source said. “But, for steel [made in electric-arc furnaces (EAFs)] with emissions below 1 tonne of CO2 per 1 tonne of steel, this price is too low.”
A mill source estimated achievable premiums at €150-200 per tonne.
Another mill source estimated achievable premiums at €170-200 per tonne.
Overall, activity in the spot market remains sporadic, while increasingly more buyers are looking to sign long-term agreements with green steel suppliers, expecting higher demand in the years to come.
Notably, Nordic green steel startup Blastr signed a memorandum of understanding with Netherlands-based steel service center Vogten Staal for low-carbon emissions steel supply on Monday April 7.
This is the third offtake agreement announced by Blastr in the past few months, supporting a material increase in the supply of decarbonized steel products in Europe.
But when contacted by Fastmarkets, the company did not specify either the start of the deliveries or the volumes.
Established in 2021 with the aim of becoming an integrated low-CO2 steel producer, Blastr planned to produce around 2.5 million tonnes per year (tpy) of hot- and cold-rolled steel.
Final investment decisions on both a direct-reduced iron (DRI) plant and a steel plant were expected by early 2026.
Vogen Staal has processing lines in Maastricht, the Netherlands. The company has recently invested in a second production facility. When all new lines are installed, the production capacity of both facilities will be well over 1 million tpy.
Green longs
On Wednesday April 9, Fastmarkets launched two new European green long steel prices to reflect emerging market interest in low-carbon material.
Fastmarkets’ inaugural weekly price assessment for green steel, differential to steel reinforcing bar (rebar), domestic, delivered Northern Europe was €20-30 per tonne on April 9.
And the first assessment of the green steel base price, reinforcing bar (rebar), domestic, delivered Northern Europe, inferred was €660-710 per tonne on Wednesday.
The latter price is calculated by adding the weekly green long steel differential to the weekly price for steel rebar, domestic, delivered Northern Europe.
The European long steel industry is predominantly EAF-based, which makes it a priori cleaner in terms of emissions compared with the blast furnace-basic oxygen furnace (BF-BOF) route that prevails in flat steel production.
EAF production typically emits around 0.8 tonnes of carbon emissions per 1 tonne of steel. Therefore, “green” requirements for long steel producers are stricter than in the flat steel sector.
Several sources stressed that, to be green, emissions produced by EAF-based mills within all three scopes should not be above 0.5 tonnes per 1 tonne of steel. As a result, Fastmarkets’ methodology defines European green long steel as “steel produced with Scope 1, 2 & 3 emissions at a maximum of 0.5 tonne of CO2 per tonne of steel.”
In such conditions, long steel producers in Europe are squeezed between stricter criteria for being considered green and limited demand.
“Being an EAF producer is both an advantage and a disadvantage,” a producer from Southern Europe told Fastmarkets. “On one hand, we are already green, but on the other, customers do not see why they have to pay a premium for what they had previously been buying without it.”
Even in Northern Europe, which is pioneering the utilization of green long steel, the demand is said to be limited.
“At this moment, I see no willingness to pay extra for low-carbon steel in the rebar sector — only for specific projects where there is an order qualifier and the options are limited,” a trader from Northern Europe said.
In such conditions, customers are not ready to accept mills’ offers, which vary in the range of €30-50 per tonne, depending on the supplier.
A source on the sellers’ side said that customers accept premiums at the lower end of the range, but sometimes, producers accept lower numbers.
“Charging premiums for longs is very difficult in Europe, as the production nature is already greener than for flats,” a trading source said, providing an assessment of a workable premium at a maximum of €20 per tonne.
Europe’s ‘melted and poured’ rules on steel will be made clear by September: Van Bael & Bellis
Speaking at the Eurometal Steel Day and the 10th YISAD Flat Steel Conference in Istanbul on Tuesday April 8, Di Gianni detailed the recent regulations introduced by the European Commission.
The Commission intends to tighten current steel trade defense measures, improve regulations for the prevention of carbon leakage and provide affordable clean energy to support the steel industry, according to a draft version of the European Steel and Metals Action Plan.
One of the most important points in the plan is the ‘melted and poured’ rule, which basically will mean that the Commission will be able to trace the origin of steel exported into Europe.
For example, if hot-rolled coil is exported to Europe from Turkey but the slab used to produce the HRC was from China, the Commission may impose the import duty for slab of Chinese origin. The exporters and buyers will be required to trace the production origin of the end-materials.
Such investigations into the origin may go back retrospectively by three years, Di Gianni said in his presentation to the conference.
Conference delegate Ahmet Soybaş, partner at Soybaş Steel, asked how the origin of hot-dipped galvanized coil would be traced.
For instance, a galvanizer may buy Turkish HRC, galvanize it, and then export it to Europe. The end-producer cannot know the origin of the slab, Soybaş said, because it bought HRC as substrate. Di Gianni said that the European Commission would investigate why the galvanizing was done in Turkey. “Was it in order to [avoid] duties on Chinese HDG? That is the question the Commission will ask,” Di Gianni said.
Tayfun İşeri, coordinator at Colakoglu Metallurgy, asked how end-users such as automotive exporters would know the location of melting. “How will this be traceable?” he asked.
He also said that if a producer used locally produced slab to make HRC for export to Europe, and then used imported slab for HRC to be consumed locally, how would the Commission be able to know the difference in the final materials?
Di Gianni said that details on all these points were not clear yet but the Commission was expected to announce details by the end of the third quarter of 2025.
He added that the Commission was also planning to impose limits on scrap exports from Europe by September.