Sentiment mixed in European steel HRC market, trading quiet
Market participants had different expectations regarding the development of price trends in the European steel hot-rolled coil market, while trading was largely quiet on Monday July 7.
Fastmarkets’ calculation of the daily steel HRC index, domestic, exw Northern Europe, was €551.25 ($644.63) per tonne on July 7, up by €1.25 per tonne from €550.00 per tonne on July 4.
Sources from Austria and Germany reported estimates of workable price within a narrowed range of €540-550 per tonne ex-works versus a wider range of €530-560 per tonne ex-works at the end of last week, while buying activity was said to be muted for seasonal reasons.
A source from the Benelux region, meanwhile, reported achieving a price of €570 per tonne ex-works in some deals and had positive expectations for the second half of 2025.
But with only limited volumes traded at this price, this was not a sign of a reversal of the trend.
Another market source expected the price downtrend to continue, although it should slow with the market bottom being close.
And a third source said that he expected either further price drops, or for them to stabilize in a best-case scenario.
At the same time, in Italy sources estimated tradeable prices for HRC within the range of €520-530 per tonne ex-works, versus €520-540 per tonne ex-works last Friday.
Demand was described as “very weak” with some expectations for a price of €500 per tonne ex-works to be workable by the end of July.
Import prices continued to put additional pressure on domestic producers, with a large cargo of Indonesian coil reported sold at €450 per tonne CFR.
As a result, Fastmarkets’ daily steel hot-rolled coil index, domestic, exw Italy, was calculated at €526.67 per tonne on Monday, down from €530.00 per tonne on Friday.
Trump puts new 25% tariffs on imports from Japan, South Korea
US President Donald Trump has announced new 25% tariffs on US imports from Japan and South Korea, citing trade imbalances, set to take effect on August 1.
“We… have concluded that we must move away from these long-term, and very persistent, trade deficits engendered by [Korea’s and Japan’s] tariff, and non tariff, policies and trade barriers [sic],” Trump said via social media on Monday July 7.
This included screenshots of letters sent to Japanese Prime Minister Ishiba Shigeru and South Korean President Lee Jae-myung.
It would appear that a significant factor behind the new tariffs on the two Asian economic powerhouses was an attempt to curb transshipment. This is the practise of moving goods to an intermediate location, then on to a final destination, and is typically used to avoid tariffs.
“Goods transshipped to evade a higher tariff will be subject to that higher tariff,” the letters posted online said. “The 25% number is far less than what is needed to eliminate the trade deficit disparity we have with your country [sic].”
The newly announced 25% tariffs will be separate from additional sector-specific duties on key product categories, the letters added.
Trump also warned both countries against retaliating by increasing their own tariffs.
“If for any reason you decide to raise your tariffs, then, whatever the number you choose to raise them by, will be added onto the 25% that we charge [sic],” Trump said.
Both South Korea and Japan are significant exporters of steel to the US.
South Korea and Japan exported 231,455 tonnes and 62,163 tonnes of steel to the US respectively in June, representing 14.81% of the total volume of steel imported into the US that month, data from the International Trade Administration showed.
The new tariffs on South Korea and Japan announced on Monday come just two days before the end-date of Trump’s three-month pause on the reciprocal tariffs, so they have created confusion about what will happen with the US’ trading relationships on July 9.
The 90-day pause began on April 9, after the US president imposed reciprocal tariff rates for key US trading partners, with some levies as high as 50%. This was on April 2, or what Trump called “Liberation Day.”
Other trading partners could receive similar letters detailing new tariffs, with Trump reported to have told news reporters on July 4 that he would inform 10 to 12 nations a day over the next five days.
“[The tariffs] range in value from maybe 60% or 70% tariffs to 10% and 20% tariffs, but they’re going to be starting to go out sometime tomorrow,” Trump said on Friday. “We’ve done the final form, and it’s basically going to explain what the countries are going to be paying in tariffs.”
Polish steel rebar prices drop on weak demand, oversupply
Polish prices for steel rebar softened during the week ended Friday July 4, with reduced demand and oversupply from mills affecting the market, industry sources told Fastmarkets.
Over the week to Friday, mills were heard offering prices around 2,480-2,500 zloty ($685-691) per tonne CPT, compared with 2,520-2,550 zloty per tonne CPT the previous week.
Deals were also heard at 2,500 zloty per tonne CPT.
The drop in prices was attributed by market sources to “lower demand” and “rare sales,” which they say were affecting long steel prices both in Poland and in the broader European market.
Last week’s higher temperatures and oversupply from mills were also believed to have had an effect on the market, driving down rebar prices, trade sources said.
As a result, Fastmarkets’ weekly price assessment for steel reinforcing bar (rebar), domestic, cpt Poland, was 2,480-2,500 zloty per tonne on Friday, falling from 2,500-2,550 zloty per tonne the previous week.
Wire rod
Meanwhile, prices for Polish domestic low-carbon drawing-quality wire rod remained stable in the week to Friday, Fastmarkets heard.
Offers were heard hovering around 2,700-2,800 zloty per tonne CPT, the same as in the previous week.
But market participants indicated that the workable market price for wire rod in Poland was still 2,680-2,720 zloty per tonne CPT on Friday, as in previous wees.
Therefore, Fastmarkets’ price assessment for steel wire rod (drawing quality), domestic, delivered Poland, was 2,680-2,720 zloty per tonne on Friday, unchanged week on week.
Some import prices from Ukraine were heard at €570 ($669) per tonne, DAP border.
EU extends Korea, Malaysia, Russia fittings AD duties
The European Commission has imposed definitive anti-dumping duties on imports of certain tube and pipe fittings originating in South Korea, Malaysia and Russia, following an expiry review, Kallanish notes.
The latest review was initiated in April 2024 upon a request from the EU steel butt-welding fittings industry, which argued that expiry of the existing measures would likely lead to renewed dumping and injury.
The renewed measures apply to iron or non-stainless steel tube and pipe fittings (excluding cast, flanged, or threaded fittings) with an outer diameter not exceeding 609.6mm. These are used primarily for butt-welding and other industrial purposes and currently fall under CN codes ex 7307 93 11, ex 7307 93 19, and ex 7307 99 80 (TARIC codes 7307 93 11 91, 7307 93 11 93, 7307 93 11 94, 7307 93 11 95, 7307 93 11 99, 7307 93 19 91, 7307 93 19 93, 7307 93 19 94, 7307 93 19 95, 7307 93 19 99, 7307 99 80 92, 7307 99 80 93, 7307 99 80 94, 7307 99 80 95, and 7307 99 80 98).
For South Korea, the anti-dumping duty is 32.4% for TK Corporation and 44% for all other companies.
In Malaysia, Anggerik Laksana faces a 59.2% duty, Pantech Steel Industries 49.9%, and all other Malaysian exporters 75%.
For Russian exporters, a uniform duty of 23.8% applies.
| Country | Company | AD duty |
| Republic of Korea | TK Corporation, 1499-1, Songjeong-Dong, Gangseo-Gu, Busan | 32.4 % |
| All other companies | 44.0 % | |
|---|---|---|
| Malaysia | Anggerik Laksana Sdn Bhd, Selangor Darul Ehsan | 59.2 % |
| Pantech Steel Industries Sdn Bhd | 49.9 % | |
| All other companies | 75.0 % | |
| Russian Federation | All companies | 23.8 % |
The anti-dumping measures on Korea and Malaysia were initially introduced in 2003 and re-imposed after subsequent reviews in 2008, 2014, and 2019, with additional adjustments made through a partial interim review in 2016. For Russia, duties were originally imposed in 2013. Following its first expiry review, the Commission re-imposed duties on Russian imports and terminated the investigation concerning Türkiye.
Elina Virchenko Ukraine
HitecVision acquires Outokumpu biocarbon supplier
HitecVision has completed a majority share acquisition in Vow Green Metals, a Norwegian biocarbon supplier to the metallurgical industry, including Outokumpu, Kallanish notes.
The company is now entering a new phase focused on building an “integrated industrial platform for biocarbon production – a climate solution with strong potential to reduce emissions in the process industry”, Vow Green Metals notes.
HitecVision, through its entity Midas Industri AS, made a public offer for Vow Green Metals and secured a 91.4% acceptance rate. The biocarbon producer’s last day of trading on the Euronext Growth Oslo exchange was 4 July.
Vardar AS and Skagerak Energipartner AS will continue as shareholders and co-owners alongside HitecVision in the further development of the company.
The new owners will support the company’s strategy to realise full production capacity at the large-scale facility under construction in Hønefoss and to develop additional production facilities, Vow Green Metals notes.
Vow Green Metals has several ongoing projects, including projects under development at Viken Park in Østfold and Eiktyr Industrial Park in Orkland, where the company, in collaboration with local partners, plans to build large-scale biocarbon production facilities. The firm’s target is 200,000 tonnes/year of biocarbon production by 2030.
Jan Arve Haugan has been appointed chair of Vow Green Metals.
According to the Norwegian Environment Agency, increased use of biocarbon could reduce emissions by more than 1.4 million tonnes of CO2-equivalents by 2030, and more than 1.6mt by 2035. The potential is primarily based on the substitution of fossil coal in metallurgical industries.
Adam Smith Austria
KASTO evaluated the future of the industry at EUROMETAL’s 75th Anniversary Conference
KASTO, a Germany based manufacturer of sawing and automated warehouse systems, was the main sponsor of EUROMETAL’s 75th Anniversary conference in Luxembourg and shared its innovative solutions and global vision with the participants. KASTO Owner and CEO, Armin Stolzer, gave a comprehensive presentation on how the steel distribution industry is transforming around digitalisation, automation and sustainability.
Armin Stolzer emphasized that KASTO is a leading company in the metal industry with six subsidiaries across Europe, North America, and Asia. He stated that while a large portion of their customer base is made up of the steel distribution sector, they also serve various other industries such as the window and door industry, as well as machinery, energy, and aerospace.
Stolzer explained that on the storage side, KASTO offers automated solutions with capacities of up to 10,000 pallets, ranging from standard systems to fully integrated and customized solutions. He noted that these systems operate in full integration, allowing for the storage of automatically cut parts thanks to material handling solutions like robotic sorting devices.
He also introduced a new solution launched during Kasto’s 80th anniversary last year, which enables the retrieval of all bars from storage and order preparation without human intervention. He explained that the system, called Cluster Flow, manages the entire warehouse process up to truck loading.
On the cutting side, Stolzer stated that Kasto provides compact machines for small and medium-sized companies, as well as a wide range of machines for mass production or special applications. He emphasized that all machines can be integrated with other systems, and that warehouse flows can be optimized through dedicated mobile applications.
In his speech, Stolzer also addressed political and economic challenges, highlighting rising costs, labor shortages, competitive pressures, and logistical issues. He proposed a five-step model for improving efficiency in warehouse management and highlighted the importance of LED technology in both hardware and software.
Recommending vertical core solutions in storage systems, KASTO maximizes space utilization while reducing material movements to save labor and costs. Stolzer pointed out that by combining technology with efficiency, companies can reduce occupational health and safety risks, increase customer satisfaction, and optimize their operations.
He also underlined that the integration of software solutions with warehouse management systems enables production machines, cutting optimization, and intelligent systems to work together seamlessly. Stolzer added that KASTO continues to pursue the goal of achieving high efficiency with fewer personnel by leveraging technology, especially during a period when the baby boomer generation is exiting the workforce.
As the main sponsor of the conference, KASTO continues to shape the future of the steel distribution industry with its innovative solutions focused on sustainability and digital transformation.
Julian Verden: Volatility and unpredictability have become the only constants in today’s commodity markets
Speaking at EUROMETAL’s 75th anniversary conference, Julian Verden, Managing Director Europe at Stemcor, shared his insights on the evolving dynamics of global steel trade, highlighting both the challenges and opportunities facing the sector.
“We’ve entered an era in global steel trade defined by price volatility, protectionism, and geopolitical tensions,” Verden stated. “The HRC price in the U.S. currently stands at $958/ton, up about $190 since the beginning of the year — a 22% increase year-over-year. While this points to a short-term recovery, we expect prices to stabilize at elevated levels over the longer term.”
Turning to Europe, Verden noted, “The HRC price in Europe is currently €576/ton, reflecting a 9% decline compared to the same period last year. CBAM implementation, demand recovery, and restocking are expected to push prices up in the long run, but weak short-term demand continues to weigh on the market.”
On China, Verden noted: “The HRC price in China is at $445/ton — down $15 from the start of the year and 14% lower year-over-year. China’s steel exports are rising; in the first five months, they exported 48.47 million tons of steel products. While this offers short-term relief for Chinese mills, it also places downward pressure on global prices. Without a recovery in domestic demand, China’s steel sector may face structural challenges.”
Verden also addressed protectionist measures: “U.S. President Trump’s decision to raise steel and aluminum tariffs to 50% is impacting markets. The UK is currently exempt, but ongoing negotiations with Mexico and Canada add uncertainty. Europe has requested exemptions from the 50% out-of-quota tariff. Meanwhile, India and Southeast Asian countries are also introducing anti-dumping measures against Chinese steel. Protectionism is forcing a new balance in global steel trade.”
Regarding geopolitical developments, Verden stated: “The Russia-Ukraine war and Iran-Israel tensions are driving up energy and freight costs. Brent crude prices have risen by 15% recently, and the Baltic Dry Index is up 17.6%. In this environment, uncertainty has become a permanent feature of the steel sector.”
On green transition efforts, Verden remarked: “CBAM is expected to add around €56 per ton in additional cost for imported steel. Europe’s low demand and shrinking margins have slowed down green steel projects. Some DRI-EAF projects have been halted. While there is green steel supply, buyer-side demand remains sluggish. However, with increased government spending and full CBAM implementation, we anticipate a rebound in both pricing and demand for green steel.”
Verden concluded his remarks by stating: “To adapt to the new era in the steel industry, we must be flexible, creative, and open to collaboration. Only then can we ensure sustainability and price stability.”
Klöckner & Co: The green transition needs steel
Germany-based steel and metal supplier Klöckner & Co SE highlighted the critical role of the steel industry in the green transition. Speaking at EUROMETAL’s 75th Anniversary conference, the company’s CEO, Guido Kerkhoff, emphasized that environmentally friendly steel production plays a key role in combating climate change.
Kerkhoff pointed out that compared to alternative materials such as carbon fiber, steel is less harmful to the environment and contributes to the circular economy thanks to its recyclability. Kerkhoff noted that “green steel,” produced with modern technologies, significantly supports sustainability through its low carbon emissions during production processes.
According to company data, the use of green steel can substantially reduce carbon emissions in sectors such as automotive, household appliances, construction, and energy projects — all while only causing a marginal increase in final product prices. “Green steel can offer over 20% CO₂ savings with cost increases of just up to 1%,” Kerkhoff stated.
Guido Kerkhoff also warned that demand for green steel in Europe is rapidly increasing and that production capacity may fall short of meeting demand by 2030. He highlighted potential mismatches between green steel types and customer expectations.
Underlining that customers aiming to meet climate targets need products with genuinely low carbon footprints, Klöckner & Co is expanding its portfolio of sustainable products and services. The company has developed a system under the Nexigen® brand that ensures carbon emissions are measured and reported transparently.
Thanks to Nexigen®, the carbon footprint of each product is calculated and shared in detail with customers. The system covers emissions throughout the entire supply chain — from raw material procurement to final delivery — and is certified according to international standards. This allows customers to view carbon data for past orders and explore lower-emission alternatives.
Kerkhoff noted that transparent carbon accounting across the supply chain provides a strategic advantage for both companies and customers. Pointing to the rising demand for low-carbon steel products over the next 5 to 10 years, the CEO stated, “Only products with verified and transparent carbon data will be able to meet this demand.”
Klöckner & Co continues to focus on low-carbon steel supply and sustainable solutions with the ambition of being a pioneer in the green transition.
EUROMETAL president says CBAM clarity vital as Europe steel trade enters transition phase
The Carbon Border Adjustment Mechanism (CBAM) will reshape European steel trade in the coming year, but the market still lacks key details needed for long-term planning, Alexander Julius, president of EUROMETAL, told S&P Global Commodity Insights in an interview.
Alexander said that the future of European trade policy lies in stronger federation-wide coordination. “Our intention is to further strengthen the joint voice of federations. We need more and more of one voice toward Brussels,” Julius said.
Market seeking DDP clarity
Julius emphasized that for most of Eurometal’s members, steel trade into Europe already occurs on a DDP (delivered duty paid) basis — a trend that CBAM is expected to accelerate.
“Our business has always been DDP — not a lot of CIF/CFR at all,” he said. “The industry wants DDP solutions. But to deliver those, we need full clarity on CBAM.”
Julius noted growing concerns from exporters within the EU, especially regarding necessary potential tax claims when exporting to non-ETS countries and the complexity of tracking embedded emissions downstream.
“If CBAM is digested as a tax, but you’re exporting to a country without an ETS, will there be a way to claim it back? That’s one of the unresolved questions,” he said. “It’s becoming another cost factor that needs to be built into calculations but then the question of competitiveness remains.
No premium, but ‘grey steel’ pricing may shift
Asked whether CBAM could lead to more EAF-based imports into Europe, Julius said there would not be a “green steel premium” but rather a premium for more carbon-intensive products.
“For blast furnace products, CBAM costs will be higher. You may see a kind of ‘grey steel premium’ emerge instead. The market will adapt,” he said.
Julius pointed to companies using both BF and EAF production routes, and suggested that, as mass-balancing and emissions accounting practices evolve in view of the EC plans to avoid resource shuffling, trade dynamics will be affected.
“In the end, CBAM won’t stop trade — but it will change its shape,” he said.
Industry still waiting for benchmarks
With no final EU CBAM benchmark and default values published yet, as well as the speculative EU ETS development until the end of 2026, carbon cost calculations remain a challenge for steel buyers and distributors. Julius said Eurometal members are relying on mill-reported emissions, ETS prices, and internal know-how to anticipate likely CBAM values.
“We’ve dealt with this in detail at the company level. We expect the benchmark to be within a certain range — close to ETS levels — but more certainty is essential,” he said.
He added that some buyers want CBAM costs broken out as a line item, while others prefer a bundled, inclusive price. “It depends on the customer — but everyone wants the calculation formula to be consistent and transparent,” Julius said.
As the EU’s CBAM looms on the horizon of 2026, many have suggested that there could be a deluge of imports, as buyers attempt to avoid the mandatory carbon reporting requirements from the legislation.
Industry consolidation and EUROMETAL’s evolving role
Looking ahead, Julius said the European steel landscape was becoming increasingly regionalized, with more consolidation in downstream sectors and a shift toward local sourcing.
Reflecting on Eurometal’s 75th anniversary event, Julius said the feedback had been overwhelmingly positive, despite some suggestions to include more voices from the distribution segment.
“A few people criticized that we didn’t have enough distribution businesses represented. But our speakers — from Henrik Adam to Marcegaglia — were very well received,” he said. “The dinner and cocktail night before was very important — it helped bringing people together. Attendance was strong, and the feedback we’ve had so far has been great.
EUROMETAL’s presence is getting stronger, more companies and associations are becoming part of our federation, and we gain an increasing market picture enabling is to better represent the interest of our industry.
