Spain’s longs market strengthens on construction sector boost
The Spanish long steel market has been on a recovery path since May, driven by a rebound in rebar consumption supported by improving construction sector activity, Kallanish hears from market participants.
“Demand from the public sector has shifted from weak to stable in recent weeks. We’re also seeing a noticeable rise in private construction activity,” a source comments. “Distributors report that end customers are purchasing in larger volumes as summer approaches. Overall, market confidence is very optimistic for June and July.”
However, some caution remains. Another market participant warns that the momentum seen in May could slow, as mills have raised their selling prices by approximately €10/tonne, in line with higher scrap costs.
“This price hike is dampening demand just as buyers were gaining confidence after months of uncertainty,” the source adds.
Despite the recent price adjustment, expectations for the near term remain positive, buoyed by seasonal demand and the gradual stabilisation of economic conditions.
The monthly index for Spanish domestic rebar prices in May decreased compared with the previous month, according to data published by the Spanish Chamber of Commerce. The index stood at 192.90, down 0.61% from April. However, it was 11.69% higher year-on-year. The index is based on a value of 100 in 2014.
The 16mm material is offered in Spain at €360-362/t ($403.27-408.95/t) ex-works basis. With size extras and loading costs adding €262/t, transaction values stand at €622-624/t delivered.
Todor Kirkov Bulgaria
Italian coil market stagnation persists
The Italian coil market is stagnant, with buyers adopting a wait-and-see approach. They tell Kallanish that they are unwilling to engage in purchases within the European market, citing sufficient inventory levels that will sustain their operations for at least the next three weeks.
The gap between the values of imported and domestic hot rolled coil has, in some cases, surpassed €100/tonne ($113/t). Whilst rerollers have some more work, service centres report lacklustre demand. Overall, demand continues to be subdued, resulting in pricing and margins facing significant pressure in downstream markets. Sheet prices have once again fallen below the €700/t delivered threshold. Hot rolled sheets are priced in a range of €680-690/t delivered. Pickled products remain at €700/t, raising substantial concerns regarding profit margins.
The coil market in Italy, as well as across Europe, is experiencing an influx of lower-priced import offers. Turkey is positioning itself as a notable alternative import source for Italy. Offers from Turkey are reported within the range of €520-525/t cfr with additional duties applicable, reaching up to €540/t cfr inclusive of duties. Buyers contend that the first offer would equate to about €580/t delivered, a level that is viewed as competitive, with material scheduled for delivery in July. Offers from India and Northern Africa are re-emerging at approximately €540/t cfr, whereas Indonesian HRCs are being offered at a rate below €500/t cfr.
Producers in the EU are experiencing a decline in order volume, with lead times for June and July in Italy reported at €620/t base delivered. The level of €600/t delivered has, however, been realised in contracts.
A service centre reports stable demand in terms of volume; however, it is experiencing narrow margins and is not contemplating purchases in Europe due to high coil pricing. Given the current rates for sheet and other derivatives, service centres are compelled to source from the import market to mitigate their procurement costs.
Another service centre holds a similar perspective, anticipating that buying activity will not resume until July. Stock levels are moderately high, and given the current low demand, they are experiencing slow depletion.
One trader indicates that current demand for both domestic and imported coils is weak, as steel processors are operating with reduced sales volumes and are focused on depleting their existing inventories.
A third service centre forecasts that demand is unlikely to resume in the upcoming months. European producers “have to decrease their price or chose not to sell. At a time like this nobody dares to buy,” that service centre operator says.
A producer source confirms the disappointing sales figures and noted that last week the market experienced an almost complete standstill.
The Carbon Border Adjustment Mechanism (CBAM) dilemma implies that import purchases from distant sources will undoubtedly slow down in September or October. A source indicates that CBAM is expected to exert additional pressure on service centres, potentially resulting in costs of up to €50/t starting 1 January 2026.
A steel processor with operations in Europe and other third countries emphasises the importance of entering September with full inventories, taking advantage of low import offers before CBAM. In the fourth quarter, only the nearby origins, specifically Northern Africa and Turkey, will be accessible, as the material is projected to arrive at ports before January.
Natalia Capra France
Trump doubles US steel tariff to 50%
US President Donald Trump is doubling his tariff on steel imports to 50% from 25%, Kallanish reports.
Trump revealed the news Friday during a rally at the US Steel’s Irving Plant in West Mifflin, Pennsylvania. In a social media post later, he specified that the 50% levy goes into effect on Wednesday.
Trump was at the Irving Plant, part of Mon Valley Works, for the rally celebrating apparent investment promises by Japan’s Nippon Steel (see separate story). He says the new tariff level would help ensure that the tentative “planned partnership” between Nippon and US Steel achieves success.
More broadly, Trump says he doubled the steel tariff to erect a more impenetrable barrier to foreign steel competing against US domestic steel. He explains that the 25% tariff potentially could be overcome by some overseas exporters.
“At 50%, they can no longer get over the fence,” the president proclaims.
One domestic steel association immediately lauded the move. The American Iron and Steel Institute issued a statement noting that Chinese steel production was 118 million tonnes last year, unfairly exceeding total North American volumes.
“Led by China, global steel overcapacity and production continues to grow, even as overall global steel demand is being impacted by the sharp downturn in the Chinese construction sector,” AISI president and chief executive Kevin Dempsey comments. “Given these challenging international conditions that show no signs of improvement, this tariff action will help prevent new surges in imports that would injure American steel producers and their workers.”
Trump’s 25% tariff on steel imports, one the earliest trade measure announced as his second presidential term got underway, went into effect in March (see Kallanish 13 March).
Trump has used Section 232, with its national security rationale, as the platform for the steel tariffs. Earlier in the week, separate Trump tariffs including his “reciprocal” and fentanyl-linked levies were struck down by the US Court of International Trade (see Kallanish 30 May). Those “emergency” measures are still in effect pending an appeals process.
Dom Yanchunas USA
Urgent Call to Action: Help Identify Steel Derivatives Undermining European Manufacturing
EUROMETAL is issuing an urgent call to its members, partners, and the broader steel community to take immediate action in addressing a growing threat to the European steel value chain: the rising influx of imported steel derivatives.
These ready-made steel products—often entering the EU market without adequate oversight, restrictions, or equivalent regulatory safeguards—are increasingly displacing domestically manufactured goods. The unchecked rise in such imports puts significant pressure on European production, processing, distribution, and end-use sectors.
Earlier this year, EUROMETAL formally raised this concern with the European Commission. In response, the Commission has asked for concrete, data-based evidence—specifically tariff codes and import figures that demonstrate the growing impact of these products.
To meet this request, EUROMETAL is leading a coordinated data collection effort, in close collaboration with EUROFER and other interested associations. The joint submission will be presented to the European Commission to ensure that steel derivative imports are fully recognised in future trade and regulatory measures.
We urgently request your support to:
- Inform your customers and networks—especially manufacturers and end-users—about this initiative.
- Encourage them to identify and report steel derivative imports (ready-made products) that are competing with EU-made goods.
- Connect us with relevant national or European industry associations who can co-sign and strengthen this Call to Action.
A submission template is available (attached) to facilitate the process. All contributions should be sent to office@eurometal.net no later than 15 June 2025.
This is a time-sensitive and strategic opportunity to ensure that the voice of European steel is heard clearly and backed by facts. Your participation is essential to demonstrating the scale of the issue and protecting the competitiveness of our industry.
For further assistance or promotional materials, please contact the us.
2025.06.02 Urgent Call to Action: Identifying steel derivatives undermining European manufacturing