UK to impose stricter country-specific caps on three steel product categories
The UK Department for Business and Trade (DBT) has rejected the UK’s Trade Remedies Authority’s (TRA) recommendation regarding a tariff-rate quota and has decided to implement a different measure, according to a letter by Jonathan Reynolds, the UK secretary of state for DBT and president of the Board of Trade, to Nick Baird, chairman of the TRA. According to the letter, the reason for the decision is to ensure the overall effectiveness of the UK’s steel safeguard measure for domestic producers while balancing the need for security of supply for the UK market in line with traditional trade flows.
The DBT has decided to increase the overall volume of each category’s tariff-rate quota by 0.1 percent, while applying a 15 percent cap in the residual quota of metallic coated sheet and a 20 percent cap in the residual quotas of non-alloy and other alloy quarto plates and rebar to ensure that UK imports from exporting countries are more closely aligned with traditional trade flows, both effective from July 1, 2025. Initially, the TRA had recommended that 40 percent country-specific caps be imposed on imports of the three categories of steel in question, as SteelOrbis previously reported.
In addition, there have been some amendments to the allocation of the tariff-rate quotas in line with the TRA’s recommendation, including preventing any unused quarterly quotas from being made available in the following quarter; preventing WTO members with a country-specific quota from being able to access the residual quota in the final quarter; updating developing country exemptions based on UK import data for the period January 1, 2024 to December 31, 2024 and in line with the WTO Agreement on Safeguards.
Gareth Stace, director general of UK-based trade association UK Steel, said, “The measures will reduce the pressure of steel diversion from the US and EU and prevent countries that flood international markets with unsustainably cheap steel from swamping the UK. The government has made the right decision, in response to a tough trading environment where subsidized imports undermine domestic steel production.”
German crude steel output down 10.8 percent in Jan-May 2025
In May this year, Germany’s crude steel output went down by 6.4 percent year on year to 2.98 million metric tons, according to the information provided by the German Steel Federation Wirtschaftsvereinigung Stahl (WV Stahl). In the first five months of this year, crude steel production in Germany declined by 10.8 percent year on year to 14.43 million mt.
In the given month, Germany’s pig iron output amounted to 1.83 million mt, down by 9.8 percent, while in the January-May period it decreased by 13.7 percent to 9.01 million mt, both on year-on-year basis.
In May, the country’s hot rolled steel output grew by 0.5 percent year on year to 2.66 million mt, while dropping by 8.3 percent to 12.79 million mt in the first five months this year, both compared to the same periods of the previous year.
ArcelorMittal appoints new chief for Hamburg
ArcelorMittal Germany has appointed Thoralf Winkel chief executive of its Hamburg mill with effect from 1 July.
He succeeds Monika Boh, who is leaving the company at the end of August to face new challenges, Kallanish reads in a company statement. Boh became ceo of Hamburg only in November last year.
Winkel began in services at ArcelorMittal’s Bremen mill in 2001. Between then and 2017, he held various roles, including leading positions. Most recently he headed Bremen subsidiary BRE.M.A. Warmwalz GmbH. Winkel holds a degree in ship and plant building technology from the University of Wismar.
He has “many years of experience in the steel industry and at ArcelorMittal. He has the best qualifications to lead the exciting phase of change at our Hamburg mill,” says Sanjay Samaddar, ceo of ArcelorMittal Europe – Long Products.
ArcelorMittal’s Hamburg mill has Europe’s only direct reduced iron plant, the longest-serving Midrex module, in operation since 1971. In 2024, however, it operated at reduced capacity, running only during the last five months of the year due to market conditions, according to Midrex.
Christian Koehl Germany
Marcegaglia secures low-carbon energy for future Fos-sur-Mer site
Marcegaglia has provisionally secured a long-term supply of low-carbon nuclear energy to power its upcoming coil steel production facility in Fos-sur-Mer, southern France, Kallanish learns from a company source.
The Italian steel group has signed a letter of intent with French utility EDF for a ten-year supply contract that will cover 50% of the energy requirements for the future site. The agreement, expected to be finalised by the end of the summer, aims to ensure stable, carbon-free, and competitively priced electricity, supporting the group’s decarbonisation strategy and long-term industrial competitiveness in France.
“We are strengthening our commitment to decarbonisation for the benefit of the Group’s entire production. This will allow us to use clean electricity that is carbon-free, stable, available, and competitive. The nuclear option is a key step in achieving climate neutrality targets, especially in sectors like ours that are considered hard to abate,” Antonio and Emma Marcegaglia comment in a joint statement obtained by Kallanish.
Marcegaglia plans to invest over €750 million ($868m) in the Ascometal site in Fos-sur-Mer, acquired in 2024. The project includes increasing electric arc furnace output, building a continuous slab caster, and installing new hot rolling mill. The site is expected to scale up from 150,000 tonnes/year of steel output to 2.1 million tonnes/year, with potential expansion to 2.5mt. Production is scheduled to begin by mid-2028.
“Recognised as a project of major national interest in France, the investment aims to address environmental challenges and develop efficient, sustainable production methods. One of the key conditions for moving forward was both a constructive dialogue with public authorities – including administrative approvals – and access to competitive energy supply,” the company says.
Since last year’s acquisition, Ascometal Fos-sur-Mer has been renamed Marcegaglia Fos-sur-Mer. It will produce hot rolled coil and retain its electric arc furnace. Jacques-Yves Floch, a former manager at ArcelorMittal Dunkirk, has been appointed director of the plant. The site will be transformed with a focus on sustainability and energy efficiency, producing steel from scrap and low-emission direct reduced iron.
Groundbreaking following engineering studies is scheduled at the beginning of next year. The plant currently produces bearings and engineering steels, including ingots, billets and blooms, large-diameter rolled round bars and wire rod. The project has been welcomed by the French government for its intention to produce low-emission steel and create jobs. The public debate on the plant’s transformation is expected to take place between April and September.
Natalia Capra France
European HRC prices close to cost line after aggressive sales push
European hot-rolled coil prices were steady to slightly weaker on Wednesday June 25 amid chronically weak demand and downbeat buyer expectations, sources told Fastmarkets on June 25.
In Northern Europe, activity was limited, with local producers offering coil with August and sometimes even July lead times, which indicates weak order books.
While offers came in at €580-600 per tonne ex-works, workable prices were indicated by buyers at lower levels – €560-580 per tonne ex-works.
Italian HRC was on offer to Germany at €580-600 per tonne delivered, Fastmarkets understands, with some suppliers were heard to be accepting even lower prices to fill the gaps in order books.
“[A European supplier] is selling [HRC] very aggressively and that has been [pushing prices down]. And in a [few weeks’ time] the ‘window’ for [HRC] imports with delivery in 2025 will close, and buyers will probably be cautious about booking tonnages with 2026 lead times because of [the Carbon Border Adjustment Mechanism], so domestic mills might start to increase prices,” a buyer in the Netherlands told Fastmarkets.
A transaction was reported in Germany at €545 per tonne ex-works and in the Benelux area, sources reported transactions for medium tonnages at €560-580 per tonne ex-works, depending on supplier.
Fastmarkets’ calculation of the daily steel hot-rolled coil index domestic, exw Northern Europe was €573.75 per tonne on Wednesday, down by €1.96 per tonne from €575.71 per tonne on Tuesday June 24.
The Northern European index was down by €19.58 per tonne week on week and by €58.75 per tonne month on month.
Expectations remained downbeat, however, with quite different estimates of how low the price bottom will go.
One supplier source drew the line at €570 per tonne ex-works and another at €550 per tonne ex-works.
“If prices fall below €550 [per tonne ex-works] for HRC, we will see equipment stoppages,” a third mill source said.
While a fourth mill source said: “We are at the bottom already [given] the current raw materials and energy costs,” another mill source said.
Overall, market participants told Fastmarkets they expect prices to recover in the near term because already slow demand is likely to slow further in the July-August summer season.
Some buyer sources said the acute downtrend was also down to quite aggressive sales by some European suppliers in recent weeks.
Fastmarkets’ daily steel hot-rolled coil index domestic, exw Italy was calculated at €546.67 per tonne on Wednesday, down by €1.66 per tonne day on day.
The Italian index was down by €25.21 per tonne week on week and by €54.58 per tonne month on month.
In Italy, local suppliers were offering HRC with July-August lead times at €570-580 per tonne delivered, which nets back to €560-570 per tonne delivered.
But estimates of achievable prices were lower, at around €535–550 per tonne ex-works.
Sources also told Fastmarkets that for larger volumes (more than 1,500 tonnes), local suppliers could accept lower prices, but buyers are tending to hold back from trading.
“There are expectations of further a downtrend and [some] quite interesting import offers, so nobody’s in a rush to book [HRC],” a buyer in Italy said.
In the secondary market, 4 mm HR sheet was traded at €640-660 per tonne CPT, compared with €660-680 per tonne CPT in the first half of June.
Import HRC offers were stable to slightly weaker on Wednesday.
HRC offers from Indonesia with August shipment were heard at €470-480 per tonne ex-works.
HRC from Turkey was on offer at €525-530 per tonne CFR duty paid, but some sources indicated that, for large volumes – of 20,000 tonnes or higher – it was possible to get €500-510 per tonne duty paid.
From Vietnam and Thailand, HRC offers were reported at €510-515 per tonne CFR to Italy.
Steel rebar prices in Europe stable, seeking direction
Steel rebar prices were steady in most parts of Europe in the week to Wednesday June 25, with Spain being the only market to show a significant change, Fastmarkets has learned from various market sources.
In Northern Europe, prices were largely unchanged over the wee, varying within the range of €615-640 ($716-745) per tonne delivered, which was reflected in Fastmarkets’ price assessment for steel reinforcing bar (rebar), domestic, delivered Northern Europe.
In some countries, such as Denmark, offer prices were heard as high as €650 per tonne delivered, while in Germany and Netherlands they did not go above €640 per tonne delivered.
Workable prices, however, were estimated largely within the range of €615-630 per tonne delivered, including in Austria.
A local source said that the Northern European market was trying to align more with the trend in Italy, but remained comparatively much higher.
In Italy, asking prices from mills were largely unchanged. In the north of the country, 8-16 mm B450C rebar was available at €510-530 per tonne ex-works, while in the south the minimum asking price was reported to be €540 per tonne ex-works.
There were reports that some suppliers were attempting to increase offers. But at the same time, a trading source reported bookings in the north at €500 per tonne ex-works.
Fastmarkets’ price assessment for steel reinforcing bar (rebar), domestic, exw Italy, widened downward to €500-560 per tonne on Wednesday, from €510-560 per tonne on July 18.
Spain was the only region to demonstrate any positive change. Maret sources reported prices up by €10 per tonne over the week, with increased production costs triggered by higher scrap and electricity prices.
As a result, Fastmarkets’ price assessment for steel reinforcing bar (rebar), domestic, delivered Spain, rose to €625-630 on June 25, from €615-620 per tonne on June 18.