Day: 15 May 2025

Italian hot-rolled coil (HRC) prices fell today as another mill acquiesced to lower prices, following the lead of one of its main competitors.

Argus’ daily Italian HRC index fell by €3.25/t to €603.75/t ex-works, while the daily northwest EU HRC index was static at €617.50/t ex-works.

The market is not yet concerned about the effect of a fire last week taking out a blast furnace at Acciaierie d’Italia, but there could be an impact on supply in the coming weeks. Although this is the smaller of the two furnaces, some buyers, especially larger ones, rely on index-linked supply from the mill.

Offers were reported at €630-640/t base delivered today, with deals concluded as low as €610/t base delivered, and some buyers, in negotiations, pushing for €600/t. But they doubted that they would achieve €610/t from a northwest supplier.

Yet the softness of the market is palpable, with lead times shorter now after nearly six weeks of disappointing sales. Some expect more activity by the start of June — if not, this could force producers to lower prices further.

On the import market today, an Indonesian offer was confirmed at $570/t cfr Italy. A Vietnamese offer was confirmed at $600/t cfr Italy. A Turkish mill was reported to have been reduced to $540/t fob, equivalent to just over $595/t cfr dumping included — this was not confirmed. An Indian mill offered pickled and oiled at around €615/t cfr Italy, after another one yesterday was offering at €610/t, but noted that the price needs to be at least $10/t lower to stimulate demand.

Around 30,000t of Saudi Arabian HRC was offered at around €565/t by a trader, for June shipment. Saudi material remains exempt from the EU steel safeguard. A trader said it sold Thai material to Spain at around €575/t base, also for June shipment.

In northern Europe, a mill source said it was selling small tonnages for July at €620/t ex-works. June production material from the same mill was offered by traders below €600/t, and some traders with material in hand said bids were even below €560/t ex-works, with liquidity very low. A buyer reported an initial offer at €640/t base delivered from an EU seller, while another said it had €620-640/t base delivered in hand but was waiting for lower.

Sellers conceded spot appetite was very low, but said their order books were sufficient to wait for buyers to return. One alluded to eurozone industrial production rising for the first time in two years in February.

In embryonic contract talks, mills have requested increases of around €50/t, citing upside risks from constrained supply and potential further curtailments ahead, as well as recent increases in spot prices. The higher cost of importing next year because of the carbon border adjustment mechanism (CBAM) is also a factor, according to sellers.

Some buyers secured January-June accords as low as low as €650/t, but others paid above €700/t. One mill has started its negotiations around €750/t, according to buy-side sources. One seller said if buyers do not want to pay the premium to lock in longer-term deals, they can buy closer to spot prices but on monthly contracts.

Automotive facing buyers surveyed by Argus said they could agree to a rollover — while prices have risen, euro-denominated costs have increased, giving mills more margin and thus greater room to negotiate on their half-yearly deals. Other original equipment manufacturers have already agreed to paying a rollover, with mills content with slight increases, sources said.

In the futures market, September and October traded on CME Group’s north EU HRC contract at €602/t and €608/t, while a third-quarter strip traded at €600/t.

By Lora Stoyanova 

Van Merksteijn Steel Group and Südwest Beteiligungen, the parent holding of Badische Stahlwerke, have completed their merger and established a new company named Reinforcing Steel Europe B.V.

The Dutch and German firms announced in January they agreed to merge to join forces in the reinforcing steels market (see Kallanish 9 January).

In a joint statement this week, they state the merger allows Südwest to optimise the production capacity of its two steel and wire rod plants, Badische Stahlwerke in Kehl and Moselstahlwerk in Trier. Van Merksteijn Steel Group, on the other hand, benefits from a secured supply of sustainable wire rod, produced in electric arc furnaces.

The Dutch Group revealed plans some years ago to build an EAF mill in the Netherlands to guarantee supply of wire rod feedstock needed for its wire and mesh production. The plan was however abandoned partly due to difficulties with the zoning plan.

The Reinforcing Steel Europe Group (RSE) consists of Badische Stahlwerke (BSW), Moselstahlwerk (MSW), Baustahlgewebe, Neckardraht and BVG Bewehrungsstahl Vertriebsgesellschaft (BVG) in Germany; Van Merksteijn Steel in The Netherlands; Intersig in Belgium; and Intersig France and VMI Atlantic in France, among others.

The head office will be located in Almelo, the Netherlands, and the board of directors will consist of Markus Weber, Markus Menges, Kris Van Ginderdeuren and Jan Broos.

Christian Koehl Germany

The EU’s decarbonisation strategy, comprising ideological and somewhat unrealistic targets, could lead to a long-term decline, particularly, in flat steel production, Antonio Marcegaglia told Kallanish during last week’s Made in Steel event in Milan.

He warned that a persistent fundamental bias exists in Europe that favours the interests of certain countries, notably Germany. European Commission President Ursula von der Leyen recently emphasised that the trajectory towards decarbonisation remains unwavering. “I think this could lead to a downsizing of our steel production in Europe … We will have to take into account that a little bit of [European] capacity will not be sustainable in the long term,” Marcegaglia stated during the conference.

The EU’s approach to industrial, energy, and defence policies across various nations is characterised by a pronounced emphasis on national interests. “I struggle to see the possibility of delegating them [the policies] to a supranational body or to create a system,” he added.

The European industry must advocate policy cohesion and demonstrate boldness in industrial strategies, emphasising the critical role that industry plays in economic development. The focus should not solely be on subsidies; rather, it is essential to implement industrial policies that effectively address the industry’s needs, facilitating investments in technology and establishing a clear regulatory framework, Marcegaglia continued.

He highlighted the example of the CBAM regulation, which is characterised by uncertainty and a lack of clarity, although it is scheduled to be implemented in January 2026.

He has engaged in EU strategic steel dialogue discussions. This serves as “a declaration of intent” and establishes a foundational reference framework that should translate into concrete actions in the coming weeks, he said.

During the conference, Marcegaglia warned steelmakers to show caution regarding excessive protectionist measures, which are already initiating the delocalisation of downstream industry. More customers could opt to manufacture their car components beyond European borders. Europe must reassess its position in the global steelmaking industry to maintain and potentially increase its market share, particularly in terms of product quality.

There are no winners in the trade war, Marcegaglia asserted. The escalation of duties is likely to lead to higher domestic prices, ultimately resulting in increased costs for consumers. The economy is significantly interconnected, a characteristic that is likely to persist even in the face of imposed duties.

The flows are unlikely to undergo significant transformation, as the economy encompasses not only the trade of goods but also services and finance. This includes treasury bonds held by each country, which will serve to mitigate the impact of protectionism.

In 2024, Marcegaglia group posted revenue of almost €6.9 billion ($7.7 billion), slightly down from €7.8 billion in 2023. Volumes, mostly in line with 2023, reached 5.7 million tonnes.

Natalia Capra France

Italian coil service centres reported minimal imports of coil from Asia in the first quarter, while the latest negotiations indicate that Turkey and Indonesia are positioned as primary suppliers to the European market.

As of 1 January, a significant volume of material was successfully cleared through customs, which had previously been accumulating at ports in Italy.

According to Tommaso Sandrini, president of Italian coil service centre San Polo Lamiere, understanding the available EU quota levels from Turkey is crucial, as is the decision the European Commission will make regarding Indonesia. He cautions that Indonesia may be integrated into the safeguard system within the next year and a half.

Due to protectionism, distributors will focus their coil procurement more on the EU domestic market this year, Sandrini forecasts. Coil import volumes are projected to decline, with a shift towards new sourcing regions.

Historical suppliers like Japan, Vietnam, and Egypt will see reduced volumes, while growth is anticipated from new Southeast Asian suppliers in Malaysia, Indonesia and Thailand. India will maintain consistent export volumes to Europe, while the presence of Turkey will increase.

India is currently absent from the Italian customs clearing statistics, as there have been no coil sales from that origin since the initiation of the EU’s hot rolled coil anti-dumping investigation. The country however presents a viable procurement option and is anticipated to come back in the near future. Indian offers re-emerged in the EU market for hot and cold rolled coil during the Made in Steel event last week.

In the last fortnight, however, various Asian suppliers have adopted a cautious stance, seeking to gain clarity on the available EU quotas while hesitating over the significant disparity between European and import prices.

There is a spread of approximately €160/tonne ($180) between the most recent offers from European suppliers and Asia-origin imports, Kallanish notes.

Sandrini anticipates a stable pricing environment for coil in Europe, albeit with a minor downward adjustment. At present, there are no signs suggesting a possible increase in prices in the coming months. Current market conditions indicate a lack of demand recovery, sufficient supply, and the absence of external influences that could potentially disrupt supply in Europe.

“We have digested the news of the safeguard review, which for a few weeks produced expectations of a price recovery, but it has now faded and we are returning to the price levels that we saw in December,” Sandrini comments.

Natalia Capra France

Northern European mills are struggling to raise coil prices any higher than they have been for a number of weeks now.

The target prices for hot rolled coil called by the market leader in March, €680/tonne, ($764) has not become standard in deals, let alone the following target given in April at €700/t. “I have not talked to anyone who has paid either price,” a well-connected western German service centre manager tells Kallanish. Like many others, he sees the standard price sitting at €650/t for many weeks now but concedes that smaller lots could well go for €670/t.

According to him, ArcelorMittal is currently fetching the highest prices, closely followed by Tata Steel and thyssenkrupp. “I feel that the upward move has expired a bit,” he adds. This view is shared by a buyer in southern Germany. “Mills built up prices in small slices, but it seems the zenith has been reached, and the mills had better not overdraw their targets,” he notes.

He points at ongoing negotiations for quarterly contracts with some industries, even including automotive. “Carmakers and suppliers tend to go for shorter [contract] periods now,” he observes. As a buyer of cut hot-rolled sheet, he is now paying €740/t. This includes €50 for cutting and €40 for transportation, so matches with the coil price of €650/t. “Maybe some €10-20 more is possible, but that would be the peak,” the southern German buyer continues.

However, the service centre manager notes that summer is around the corner, “and that’s when business slows down anyway”.

Christian Koehl Germany

Norwegian decarbonized steel developer Blastr Green Steel has announced that the Inkoo Municipal Council has approved the zoning plan for the Joddböle industrial area, in which the company will realize its planned Inkoo low-emission steel mill project. Also, the company, the landowners in the industrial area and the municipality of Inkoo have signed a land use agreement.

Accordingly, the zoning plan will pave the way for the construction of Blastr’s low-emission steel mill and hydrogen plant in the industrial area as well as other industrial activities. Following this process, Blastr’s Inkoo project will enter into the permitting phase.

Meanwhile, within the scope of the land use agreement between Blastr, the municipality of Inkoo, and the landowners Fortum, Inkoo Shipping, Rudus and the National Emergency Supply Agency, the parties will allocate a total of €10.4 million for the infrastructure costs of the industrial area, of which Blastr will contribute over €6.5 million.

steelorbis.com

The European Parliament has announced that it has voted in favor of extending the suspension of import duties and quotas for iron and steel imports from Ukraine due to expire on June 5 this year for another three years. The exemptions have been in place since June 2022.