German steel sales decline 5% in April, inventories drop
Germany’s total steel product sales fell 5% month over month and 3% year over year to 820,837 mt in April, BDS data showed May 22. Total inventories also fell 5.5% year over year but rose 1% month over month to 1.905 million mt, the data showed.
Sales
German sales of flat steel products decreased by 9% month over month and 5.6% year over year to 485,257 mt in April. Flat steel products are primarily used in the automotive sector, which is currently in decline due to unfavorable global economic conditions.
According to the latest data published by the European Automobile Manufacturers’ Association ACEA, new car registrations in the EU declined by 1.9% year over year in Q1 2025.
Domestic passenger car production in April fell 7% year over year to 367,500 units, according to VDA, the German Association of the Automotive Industry. Just over 1.4 million passenger cars were manufactured in Germany in the first four months of the year, up 1% year over year.
Sales of long steel products rose 3.4% month over month and 0.8% year over year to 259,504 mt. This was in line with expectations, as long steel products have generally been performing better since April, driven by demand from the construction sector, which typically picks up this time of the year.
Other steel product sales decreased by 4.7% month over month and rose 1.9% year over year to 76,976 mt.
Steel stocks
The country’s long steel stocks rose 0.5% month over month and 0.2% year over year to 662,764 mt in April. Stocks of flat products fell 8% year over year but rose 1.2% month over month to 1.2 million mt. Other steel product sales fell 14.1% year over year but rose 4.7% month over month to 39.469 mt.
Platts, part of S&P Global Commodity Insights, assessed hot-rolled coils at Eur635/mt base ex-works Ruhr on May 20, up from Eur560/mt base ex-works at the beginning of the year. In April, hot-rolled coils stayed in the price range of Eur645-655/mt base ex-works.
Global crude steel production edges down 0.3% y-o-y in April
Global crude steel production totaled 155.7 million mt in April, down 0.3% year over year, according to World Steel Association data published May 22.
This brought the January-April volume to 624.4 million mt, slightly lower by 0.4% year over year.
China produced 86 million mt of crude steel in April, steady from the previous year, accounting for 55.2% of the total global crude steel output, with January-April output up 0.4% to 345.4 million mt.
India, the world’s second-largest steel producer, saw production jump 5.6% in April to 12.9 million mt, followed by Japan at 6.6 million mt, down 6.4% year over year, the data showed.
For January-April, India produced 53.2 million mt and Japan produced 27 million mt, up 6.9% and down 5.3%, respectively, year over year.
US output in April edged 0.3% lower year over year to 6.6 million mt, with the four-month total at 26.4 million mt, steady from the previous year.
Russia produced an estimated 5.8 million mt in April, down 5.1% from April 2024, and South Korea produced 5 million mt, down 2.5% over the same period. Their four-month volumes were 4.5% and 3.4% lower at 23.4 million mt and 20.5 million mt, respectively.
Turkey’s production rose 7% year over year to 3 million mt in April, with its January-April volume down 1% to 12.3 million mt.
Germany, the largest steel producer in Europe, saw crude steel production drop 10.1% year over year to 3 million mt, the data showed, taking the four-month total to 11.4 million mt, down 11.9% year over year.
In the EU, crude steel production fell 2.6% year over year to 11.1 million mt, the data showed, with the January-April volume at 43.5 million mt, 2.4% lower over the same period.
Platts, part of S&P Global Commodity Insights, assessed domestic HRC prices in Northern Europe at Eur630/mt ex-works Ruhr May 21, up 12.5% since the start of 2025.
Brazil’s April crude steel production also dropped 3.1% year over year to 2.6 million mt, while Iran’s increased 4.6% to 3.3 million mt. Their January-April volumes were 11 million mt and 10.6 million mt, respectively, down 0.3% and 8% from a year ago.
Crude steel data covers 69 countries, which report to worldsteel, and account for about 98% of the world’s crude steel production.
European lawmakers approve carbon border tax reform on overwhelming majority
The European Parliament voted with a decisive majority to endorse a proposal to streamline the EU’s carbon border adjustment mechanism, or CBAM, by moving to a mass-based threshold and tweaking the timeline for the sale of carbon pricing certificates.
The simplification measures, part of the European Commission’s Omnibus package presented in February 2025, passed with 564 votes in favor, 20 against and 12 abstentions, clearing the way for negotiations with the European Council on the final shape of the legislation.
“The CBAM is a crucial instrument to help the EU prevent carbon leakage and incentivize climate action outside the EU. I am therefore glad that Parliament decided not to reopen other provisions of the CBAM legislation,” Antonio Decaro, a member of the European Parliament, who is the chair of the Committee on the Environment, Climate Change and Food Safety, said.
“This approach enables us to simplify matters for companies without dismantling or weakening the CBAM,” he said. “We will continue to work quickly to bring legal clarity and certainty to all CBAM stakeholders.”
CBAM tweaks
Under the changes, importers will be able to purchase CBAM certificates starting in February 2027 rather than from Jan. 1, 2026, to cover the emissions embedded in their imports for 2026, giving businesses more time to adapt to the new carbon pricing mechanism.
The proposal also includes a 50 mt de minimis threshold that would exempt 90% of importers while still covering 99% of CO2 emissions from key industrial imports.
Efforts to simplify the EU’s CBAM reflect a broader struggle within the bloc to balance environmental goals with economic realities, particularly as European industries face competitive pressures from regions with less stringent climate policies.
The European Commission had said the changes to CBAM were being made to enhance the competitiveness of the bloc’s industry by exempting small importers and reducing the administrative burden for many companies.
In early 2026, the Commission will assess whether to extend the scope of the CBAM to other ETS sectors at risk of carbon leakage.
“The bigger CBAM issues like export rebates and expansion to downstream products are still unresolved,” Ingvild Sorhus, manager of EU carbon analysis at Veyt, said. “The upcoming report on CBAM scheduled for the [Q3 2025] will be forward-looking and policy-design oriented. The report is expected to lead to a legislative proposal in Q4 2025, with exports, circumvention protection, and downstream products likely on the docket.”
CBAM essentially imposes a carbon tariff on emissions-intensive commodities imported by the EU, including aluminum, cement, electricity, fertilizers, hydrogen, and iron and steel. The aim is to level the playing field for EU companies, as most exporting countries do not have a carbon price as high as the EU Emissions Trading System or lack a price on emissions altogether.
Carbon prices vary significantly globally. Platts, part of S&P Global Commodity Insights, assessed EU Allowances for December 2025 at Eur72.69/mtCO2e ($82.24/mtCO2e) May 21.
This compares with China’s compliance emission allowance, which was valued at Yuan 70.42/mtCO2e ($9.79/mtCO2e) May 16, according to the Shanghai Environment and Energy Exchange.
European HRC market sideways amid domestic price pressure
European domestic hot-rolled coil prices saw further signs of weakness on May 22, as the market continues to grapple with weakening demand and increasing uncertainty.
“Everyone expects an ongoing decrease,” said a mill source, summing up the sentiment that continues to weigh on the European hot-rolled coil market.
The source also added that the current downward price trend is due to reduced offers by the market leaders.
“The only thing is the market leader reduced offers and took orders below their target, they had 10 months of high prices, and pushed down 50-70 euros in one week,” said the mill source. “Now they don’t give discounts anymore for July/August delivery.”
Tradable values were heard May 22 at Eur620-640/mt while a second-hand deal was heard at Eur630/mt.
Resistance is being put up by mills that are trying to set a floor price.
“Mills are trying to hold the line, but the real risk is still ahead, especially if spot demand stays this weak,” said a distributor source.
In Italy, prices decreased day over day as sources cited tradable values at Eur610-620/mt ex-works Italy.
“In Italy, HRC is being talked closer to Eur610/mt, with some re-rollers quoting Eur610-620/t ex-works,” said a distributor source.
On imports, the distributor source also cited weakening import prices, which continue to put pressure on the domestic market.
“Import offers (e.g., Indonesia at Eur505–515/mt CIF) continue to pressure domestic prices. So we’ve moved a bit below the earlier Eur640/620 levels,” said the distributor source. “This week, we see that HRC import offers to Antwerp have softened slightly.”
Import offers were reported at Eur540/mt CIF Antwerp for material originating from Indonesia, Vietnam, India and Turkey.
Platts assessed domestic HRC in Northwest Europe at Eur630/mt ex-works Ruhr, stable day over day, and in Southern Europe at Eur610/mt ex-works Italy, down Eur5 day over day.
Platts assessed imported HRC in Northern Europe at Eur535/mt CIF Antwerp, and in Southern Europe at Eur525/mt CIF Italy, both stable day over day.
Euro area construction output up 0.1 percent in March from February
According to first estimates released by Eurostat, the Statistical Office of the European Union, in March this year the seasonally-adjusted production of the construction sector in the European Union member states (EU-27) increased by 0.1 percent compared to February and decreased by 0.7 percent compared to the same month of 2024. In February, production in the construction sector had moved down by 1.1 percent month on month.
In the euro area, the seasonally-adjusted production of the construction sector in March went up by 0.1 percent month on month and down by 1.1 percent year on year. In February, production had decreased by 1.2 percent month on month.
Building construction in the EU-27 in March moved up by 0.8 percent month on month and down by 1.6 percent year on year, while civil engineering output in the region increased by 2.5 percent month on month and increased by 0.8 percent year on year. In the euro area, building construction was up by 0.9 percent month on month and down by 2.9 percent year on year, while civil engineering output in the region rose by 4.1 percent month on month and by 0.8 percent year on year.
As compared to February, construction output in March increased by 5.9 percent in Austria, by 4.6 percent in Romania, and by 3.5 percent in the Czech Republic, while it decreased by 4.3 percent in Portugal, by four percent in Slovenia and by 3.7 percent in Poland.
As compared to March 2024, construction output in March this year increased by 12.0 percent in the Czech Republic, by 8.8 percent in Bulgaria and by 7.4 percent in Austria, while it decreased by 11.6 percent in Slovenia, by 6.6 percent in Belgium and by six percent in Spain.
US tariffs hit EU stainless longs market
The European market for stainless long steel, including wire rod, bars, and other niche products, is experiencing a persistent decline, with prices reaching their lowest levels in recent years, according to supplier sources.
Two mill executives indicate
In response to contracting consumption, Europe is experiencing what can be characterised as “a new normal”, with mills adjusting their operations by idling equipment for several days each month to align with current demand levels. The stainless longs segment is going through “a recessive phase, not only in Europe but also in the US and Asia”, another northern European mill source comments.
US tariffs are significantly affecting producers in both Asia and Europe. Asian material supply, particularly from China and India, is currently experiencing a shift in direction towards Europe. EU quotas are effectively curbing robust Asia-origin supply but are not entirely halting the flow of material into the market, which “remains huge”, the source adds.
One mill reports ongoing sales in the US; however, US customers have prudently scaled back their orders, opting to purchase only what is essential to mitigate the impact of tariffs. EU mills are believed to have lost about 30% of their sales to the US as a consequence of tariffs.
The EU safeguard revision has proven to be ineffective for the European stainless longs sector. There has been a lack of action at European level to safeguard the segment from significant imports, which is largely attributed to influential lobbying by buyers.
End-user sectors have reported declining longs consumption over the past year. The US oil and gas sector has curtailed investment. One source indicates the current demand driver in Europe is the defence sector, which is anticipated to sustain its momentum due to projected capacity enhancements.
Questioned about potential projections for recovery, both sources concur “there is no outlook”. Certain macroeconomic developments might nevertheless lead to favourable outcomes for the market, including the resolution of the Russia-Ukraine conflict.
European mills are adopting a long-term perspective, navigating challenges using strategic cost management, while simultaneously pursuing investments focused on vertical integration and expansion. The strategy, which has also been adopted by some European flats producers, seeks to mitigate businesses’ exposure to the cyclical dynamics of the steel industry while diversifying production.
Coil producer Aperam has purchased US specialty steel producer Universal Stainless & Alloy Products as part of its strategy to enhance market position, expand geographic footprint, and diversify product offering. It is targeting high-growth sectors, including aerospace and industrial applications.
At its Imphy site in France, the Luxembourg-based producer is doubling capacity and boosting wire rod supply, serving the aerospace, automotive, and welding consumables industries.
Italian longs producer Cogne Acciai Speciali, a subsidiary of Walsin Lihwa, also intends to strengthen its position in the special steel industry by boosting its portfolio and expertise in the global market. The steelmaker recently expanded its operations by acquiring ComSteel Inox, its main stainless steel scrap supplier, and a portion of Outokumpu’s long products business in Degerfors and Storfors, Sweden (see Kallanish passim).
Cogne and Walsin’s growth strategy focuses on increasing market share in Europe and Asia while enhancing the group’s presence in the US market.
Natalia Capra France
Heavy steel plate prices in Europe pulled down by low demand, high stocks
Market participants also expressed concern about the future effects of US import tariffs on the European steel markets with trade negotiations continuing.
Italy
Steel heavy plate prices fell in the latest pricing session, with the market “under pressure from low demand” and limited buying, market sources said.
Fastmarkets’ weekly price assessment for steel domestic plate, 8-40mm, exw Southern Europe, was €620-630 ($703-714) per tonne on Wednesday, down by €10 from €630-640 per tonne on May 14.
“Some Italian re-rollers have lead times as short as just 10 days [because] they need to fill order books,” a trader source said.
Deals were reported at €620-630 per tonne.
New import orders into Southern Europe have been “minimal” due to high stocks of both domestic and imported plate, available at low prices with short delivery times.
Northern Europe
In Northern Europe, the domestic commodity-grade steel heavy plate market widened downward, despite plate mills targeting higher prices, trade sources said.
A German mill was heard selling plate at €700 per tonne from one location and at €670 per tonne from another.
Fastmarkets’ weekly price assessment for steel domestic plate, 8-40mm, exw Northern Europe, was €660-700 per tonne on Wednesday, widening downward by €10 per tonne from €670-700 per tonne a week earlier.
“Customers are still only purchasing what they urgently need to continue their ‘commodity grade’ business model,” a second trade source said.
Headded that more consistent business was seen in other speciality sectors of the steel plate industry – for example, in products used for offshore foundations or monopiles for offshore windfarms, with the delivery times for such speciality products having been extended.
