German sheet formers see ‘silver lining’
Germany’s sheet forming companies lost substantial business in 2024, but have nevertheless expressed modest optimism going forward, says their interest group, Industrieverband Blechumformung – IBU.
IBU’s 540 companies, mostly small and medium-sized enterprises, saw 2024 revenues drop by 12.2% year-on-year, Kallanish learns. Still, “despite lower revenues and a difficult regional environment for industrial production, sheet formers are looking ahead,” says IBU managing director Bernhard Jacobs. The companies’ sentiment has improved slightly since the end of 2024, but it is only a thin silver lining, Jacobs says.
One gentle booster for sentiment is the recent change of German government, and the hope for an improvement in the economic climate that this might bring. Policymakers have apparently become aware of the massive hurdles for businesses presented by bureaucracy, energy costs and taxation, Jacobs says. But he cautions that “our credit of confidence will soon run out if the government does not take measures quickly.”
By comparison with the pre-Covid year of 2019, sheet formers lost 15.5% of production volume and 10.6% of jobs in 2024, according to IBU.
Christian Koehl Germany
German rebar remains soft
Base prices for rebar in Germany and Austria remain unlikely to inch back up to the mark of €400/tonne ($469), which they surpassed for a period until June.
“I actually doubt that too many people bought for more than €400,” one central German buyer says. ”Mills had targeted €420 but did not get it.” Current base prices are at around €380/t, he says, “but it [rebar prices] remains under pressure”.
Further south in Bavaria and Austria, people are seeing paid prices at even lower, suggesting €360/t as a mark for recent deals. For rebar benders, prices would have to be even lower to break even in the competition for construction contracts. “€350 would be realistic” to do business downstream without making losses, one cut-and-bend manager tells Kallanish.
Influence from Italy seems to limited, as Italian offers to southern Germany are at only €10/t lower than local quotes, he says. This is quite remarkable given that domestic base prices in Italy are some €100/t lower. “The Italians sell to Germany only if they have to; they get better prices in other countries than Germany,” he finds.
He also mentions a recent push by German mills to bring prices back up by €20-30, but believes price stabilisation is the best they can hope for, with no upswing likely before summer.
Other buyers however have not confirmed the hike attempts. An Austrian buyer does however confirm the Italian prices. “The Italians charge us, in fact, €100 more than they do domestically, and I had a hard time negotiating a discount of €20 in a recent deal,” he says.
Christian Koehl Germany
Uncertainty continues to weigh on UK steel sector
Uncertainty continues to remain a key challenge for UK steel sector participants, weighing on demand and prices, said delegates at the National Association of Steel Service Centres (NASS) summer event last week, attended by Kallanish. A lack of clarity on tariffs and the incoming CBAM regulation are meanwhile constraining market activity.
One attendee noted there was a lot of talk about new UK infrastructure projects, defence spending, and the recently released industrial strategy, but “until the [demand] level actually starts coming up, [many] are staying in their lane, [and] being pretty conservative about what their aspirations are”.
The new Industrial Strategy and Infrastructure Strategy have both been welcomed by industry players as supportive for the domestic market, but it will take time for funds to be allocated.
“It’ll be like this for a while,” another attendee said, while a third noted the “full understanding was not there” regarding the incoming CBAM regulations in the EU. At a recent Kallanish conference, panellists were not confident that even half of the market were prepared for the January 2026 start.
It was also highlighted that some European mills were pulling orders forward to fill gaps ahead of the slower summer period, which typically sees slower trade and maintenance being carried out. This would result in some orders being delivered earlier than expected, and others after the maintenance work.
“There is plenty of capacity,” said one attendee.
There was also a tone of displeasure from some during the event following recent changes to the UK tariff rate quotes, with business secretary Jonathan Reynolds revising the safeguards beyond the recommendations. The changes will be implemented from 1 July, giving importers little time to digest them.
It was recently confirmed that the UK steel safeguards are to be tightened beyond those recommended by the Trade Remedies Authority (TRA). This includes new caps on residual quotes and the end of unused allocations being rolled over into new quarters.
“We are not expecting steel consumption to increase anytime soon, it’s still relatively flat,” noted another attendee, adding there is lots of talk from government but not enough action being taken.
The UK steel sector is also grappling with recent changes to the minimum wage and national insurance contributions, which would see costs sharply rise for employers.
One market participant said they were now facing an extra £60,000 ($82,000) in additional costs.
Elsewhere, a lack of definition for green steel continues to cause confusion among market participants, with no industry-wide definition yet agreed.
However, it was noted that some end user sectors such as construction are seeing customers seeking to use green steel in projects, with demand said to be evolving.
Carrie Bone UK
SSAB raises €430 million in financing for Luleå green transformation
Swedish specialty steel producer SSAB has secured an additional €430 million in green financing, completing the full funding package for its €4.5 billion transformation project in Luleå, Sweden.
The project will result in the creation of a state-of-the-art mini-mill that will lower production costs, shorten delivery times, and significantly reduce carbon emissions – by as much as seven percent of Sweden’s total CO₂ output.
“A key milestone” in SSAB’s green steel transition
“This final piece of financing marks a key milestone in our transformation journey,” said Leena Craelius, CFO of SSAB, adding, “It enables us to virtually eliminate CO₂ emissions from Luleå production, reduce costs, and improve our product mix.”
The new mini-mill will feature a 2.5 million mt annual capacity with two electric arc furnaces, advanced metallurgy, and an integrated rolling mill. The facility will also include cold rolling, galvanizing, and continuous annealing capabilities.
The project will reposition SSAB Europe as a premium steel producer while offering lower costs and shorter lead times. The mill will be able to use a flexible mix of fossil-free sponge iron, pig iron, and recycled scrap.
EU introduces new regulation to boost decarbonization, energy efficiency and clean tech production
The European Commission has introduced a new regulation called the Clean Industrial Deal State Aid Framework (CISAF) to help member states accelerate their transition to clean energy, industrial decarbonization and clean technology with the scope of the Clean Industrial Deal.
Accordingly, CISAF defines how member states can provide public support for clean industry investments under EU state aid rules. It enables the rapid implementation of national aid programs introduced by member states. The framework will apply until December 31, 2030, and will also offer long-term stability for governments and businesses.
There are five key focus areas of CISAF. One of them is offering simplified procedures to fast-track support for projects such as wind and solar power, and green/blue hydrogen with the aim of helping hard-to-abate industries in achieving the decarbonization goals of the Clean Industrial Deal.
Moreover, member states will now offer electricity cost support for companies that operate in industries exposed to global competition and rely heavily on electricity, allowing the reduction of the electricity costs of energy-intensive users that face higher costs than competitors in regions with less ambitious climate policies. In exchange, recipient companies will be required to invest in decarbonization efforts.
Furthermore, CISAF will offer flexible funding options for a broad range of decarbonization or energy efficiency technologies, including electrification, hydrogen, biomass, and carbon capture, utilization and storage (CCUS).
The framework will also provide public support for the investments in the production of clean technologies covered by the Net-Zero Industry Act. Aid will be provided on an individual basis when needed to avoid such investments from moving outside the EU. It will provide support for the investments in the production and processing of critical raw materials necessary for clean technologies. Additionally, the framework will encourage demand for clean technologies by offering tax incentives, such as accelerated tax deductions, to companies that invest in clean technologies.
Ultimately, CISAF will allow member states to reduce the financial risks of private investments by offering equity, loans, or guarantees, specifically for initiatives in energy infrastructure, the circular economy, and other clean industry areas.