European steelmakers join new green-procurement coalition “Buy Better to Build Better”
Notable steelmakers, steel trade associations and construction firms have launched the Buy Better to Build Better (BBBB) coalition at an event at the European Parliament in Brussels, Kallanish learns.
This initiative is designed to enhance green public procurement practices across Europe. Members of the coalition include steel recycling trade association Euric as well as Italian steelmakers Ori Martin and Riva Group.
The BBBB manifesto suggests that Europe should adopt a more streamlined procurement strategy, integrating criteria aimed at stimulating demand for low-carbon products and circular construction solutions. In a note, the coalition proposes a revision of EU public procurement directives featuring “coherent and horizontal procurement rules beyond lowest price, simpler and standardised EU-wide tracking of GPP [and] continued support for public authorities in implementing GPP effectively.”
Because the purchasing power represents 15% of the bloc’s GDP, if used effectively, “it will accelerate the industrial transition while advancing European competitiveness.”
Over 50% of public contracts within the EU are allocated primarily on the basis of the lowest price, disregarding factors such as quality, innovation and sustainability. A revision of the EU public procurement directives has the potential to establish sustainable procurement as a standard practice, enabling the rapid scaling of green and innovative solutions across Europe. Increasing the production of sustainable products is likely to lead to a reduction in their prices, improving affordability and competitiveness within the market.
The construction industry, where public procurement makes up 31% of overall expenditure, would be most affected. Eurostat indicates that public procurement accounts for no less than of 11% of the total greenhouse gas emissions within the EU.
“The construction and steel industries are at a crossroads. This coalition represents a key opportunity to accelerate meaningful change by advancing construction and public procurement practices that prioritise truly low-carbon and circular materials, based on clear and objective criteria,” Riva Group comments.
According to Carlo Beltrame, chief business development officer for Italian steelmaker AVF Beltrame, the very first premium for green steel will originate from the public sector. There will be an increase in green public procurement, which will mandate the purchase of carbon neutral steel.
“Over the next two years, several things will change … From the steelmaking point of view, but also from the financial institutions perspective, we will start to see a heightened sensitivity towards embedded emissions,” Beltrame told Kallanish in a recent interview.
At present, there is no premium or reward mechanism in place for those who invest in low-carbon steel production. The market for green steel is in its early stages of development, although demand is projected to rise over the next two years.
Natalia Capra France
Trump, USS say ‘partnership’ deal reached with Nippon
US President Donald Trump says Nippon Steel and US Steel, who had been attempting to merge for 17 months, will form a “partnership.”
In a social media post on Friday afternoon, Trump hailed the milestone as welcome news for Pittsburgh, Pennsylvania-based US Steel and for American industry overall. The president did not explain whether Japan’s Nippon is acquiring US Steel, as per the companies’ original agreement, or pursuing some other type of venture.
“This will be a planned partnership between United States Steel and Nippon Steel, which will create at least 70,000 jobs, and add $14 billion dollars to the US economy. The bulk of that investment will occur in the next 14 months,” Trump contends in his post on Truth Social.
US Steel confirms that an arrangement is occurring, also using the word “partnership” but similarly offering no details, Kallanish notes.
US Steel “will remain American, and we will grow bigger and stronger through a partnership with Nippon Steel that brings massive investment, new technologies and thousands of jobs over the next four years,” the takeover target says in a brief statement.
Nippon Steel in December 2023 agreed to acquire US Steel for $14.9 billion in cash (see Kallanish 19 December 2023) but has been thwarted at every turn by federal reviews on national security grounds.
Both President Joe Biden and Trump repeatedly stated that they opposed foreign ownership of the iconic 124-year-old Pennsylvania steelmaker, which was once the most valuable company in the world. Since his second presidential term started, Trump consistently has said he would prefer that Nippon make an investment in US Steel rather than own it outright (see Kallanish 10 April).
Trump mentions that he will visit Pittsburgh on 30 May for a “big rally” celebrating the agreement.
Some financial market participants interpreted the announcement as approval of the full acquisition. US Steel’s stock jumped more than 20% in late Friday trading to $52/share, approaching Nippon’s longstanding cash offer of $55/share.
The $14 billion investment figure cited by Trump matches Nippon’s most recent promise conditional upon the Japanese company being allowed to own US Steel (see Kallanish 19 May). A few days ago, the Committee on Foreign Investment in the United States issued its second report on the proposed merger.
How 70,000 jobs will be created also is unexplained. US Steel employed approximately 22,000 people as of 2024, according to its government filings.
European longs markets continue to follow diverse trends
Long steel prices have continued to follow different trends in European markets this week. Rebar and wire rod in Italy have showed a downward trend on the back of local scrap prices, while import prices from Turkey and North Africa have remained mostly stable or slightly higher.
Players in the Italian longs market have reported the latest rebar prices at €280-290/mt ex-works base (€545-555/mt ex-works including regular extras), but for more significant orders lower levels of €10-15/mt would also be possible. According to some, however, the rumors of new rises in the local scrap market in Italy these days could lead to increases in rebar prices as early as the end of this month or the beginning of June. In addition, “small signs such as the increasing demand for special steels make me think of a gradual return to normal,” a source reported.
As for wire rod, the Italian market has remained quiet this week, although some discounts in the order of €10-15/mt were granted for large orders from regular customers. In general, however, prices have remained stable at €625-640/mt delivered for drawing quality wire rod and at €610-625/mt delivered for mesh grade wire rod. The market will have to wait for the next round of sales to highlight any effective price changes.
SteelOrbis has not received any information about changes in prices of long products from Greece, while the price of rebar from Spain to UK ports has been reported at around €580/t FOB.
Finally, in the import market, rebar and wire rod prices from Turkey have been reported at €515-520/mt CFR and €520-530/mt CFR respectively, up €5/mt on the upper end of the range compared to last week. Prices from Egypt have been reported at €510-515/mt CFR for rebar and €525-530/mt CFR for wire rod, while prices from Algeria have been reported at €515-520/mt CFR for rebar and €520-530/mt CFR for wire rod. All prices are calculated based on the exchange rate of $1 = €0.88 (European Central Bank, May 22).
Italy reaches strategic agreement to relaunch green steel production in Piombino
All parties have reached an agreement on a strategic framework to relaunch the steelmaking hub in Piombino, Tuscany, Italy.
The agreement, the result of extensive discussions between the Italian ministry of enterprises and made in Italy, local authorities, the Italian State Property Agency, and the Piombino port authority, represents a key step in the country’s national plan for sustainable steel production.
The deal builds on the process launched on February 19 this year with the signing of a shareholders’ agreement between Ukrainian steel producer Metinvest and Italian plantmaker Danieli, establishing the joint venture Metinvest Adria S.p.A. to build a new low-emission steel plant in Piombino. It also follows the development agreement signed with JSW Italy, a subsidiary of India’s JSW Group, on April 18 for the modernization of the site’s rail production line.
“This agreement is the result of teamwork,” said Adolfo Urso, minister of enterprises and made in Italy, highlighting the importance of coordinated efforts among government, local institutions, and industrial partners. “Today we are looking at the opportunity to create in Piombino one of the most strategic green technology sites in both Italy and Europe,” he added, recalling the critical state of the site two years ago.
Luca Villa, CEO of Metinvest Adria, described the deal as “another concrete step” toward establishing a sustainable and competitive production facility that will serve the broader European steel supply chain. Marco Lerz, head of project finance at Danieli Group, reaffirmed the company’s commitment to bringing cutting-edge green technologies to the site, with a strong focus on efficiency and minimal environmental impact.
The framework agreement will now be presented to trade unions before the formal signing. The overall goal is to transform Piombino into a key European hub for low-emission steelmaking.