China and India lead in EU quotas for pipe and sheet products
According to data compiled by SteelRadar from the European Commission, while most countries have been cautious in using their quotas overall, China, India, and Türkiye have shown strong performance in specific categories.
During the period, China fully consumed its quota of 129,758 tons for 4B Metallic Coated Sheets, 4,974 tons for stainless hot-rolled quarto plates, and 8,169 tons for other welded pipes. India also fully utilized its quotas of 79,534 tons for organic coated sheets, 32,114 tons for stainless bars and light sections, and 5,950 tons for seamless stainless pipes.
Although many countries have remained cautious in exports despite the quota period being halfway through, Türkiye maintained its position as the top steel exporter to the EU by fully using quotas in five different product groups. Türkiye fully utilized its quotas of 99,231 tons for wire rod, 84,956 tons for hollow sections, 15,110 tons for large welded tubes, 95,531 tons for rebar, and 15,905 tons for organic coated sheets.
The data indicate that especially China and India maintain strong positions in certain steel product groups in the EU market, while Türkiye effectively leverages its logistical advantages.
Price rally continues in Italian steel rebar market
Steel rebar prices in the Italian domestic market continued on an upward trajectory in the week to Wednesday August 6, supported by limited supply and seasonally good demand.
Italian producers were going into a traditional maintenance period and were expected to restart operations by the end of August. In these conditions, insufficient material was available to cover increased buyer interest.
“Steel prices are rising compared with July. End-customer demand remains above historic averages, although it is highly fragmented,” one buy-side source said. “In response to this situation, steel mills have increased their quotations over the past month, driven by strong demand and a shortage of available material.
“There is a real ‘race’ to secure supplies, with mills reluctant to sell in order to avoid worsening their own position,” he added.
In the north of Italy, deals reached €570-590 ($664-687) per tonne ex-works. In southern areas, no new transactions were reported, but traditionally prices there were around €30 per tonne higher, according to market participants’ estimates.
New indications from mills were heard around €600 per tonne ex-works in the north and €620 per tonne in the south.
Fastmarkets’ weekly price assessment for steel reinforcing bar (rebar), domestic, exw Italy, rose to €570-610 per tonne ex-works on August 6, from €550-590 per tonne on July 30.
Steel giant Klöckner & Co exceeded expectations in the second quarter of 2025
The company significantly increased its net profit compared to the same period last year, reaching EUR 2 million.
Having reported a net loss of EUR 23 million in the same period last year, the company thus achieved a significant recovery. Earnings per share amounted to EUR 0.02 (Q2 2024: EUR 0.23 loss).
Record in North America, sluggishness in Europe
Klöckner & Co shipped a total of 1.2 million tons in the second quarter of 2025, maintaining the same volume as in the same quarter last year. Despite general market conditions, shipments reached record levels in North America, while weak demand in Europe negatively impacted deliveries in that region.
Sales revenue decreased to EUR 1.6 billion due to falling prices (Q2 2024: EUR 1.8 billion). However, despite price pressures, the company achieved an adjusted EBITDA (earnings before interest, taxes, depreciation, and amortization) of 65 million euros, significantly exceeding the EUR 42 million level from the same quarter of the previous year.
Strong financial position with positive cash flow
The company’s cash flow from operations reached EUR 75 million in the second quarter of 2025. This figure is above the EUR 61 million recorded in the same period of the previous year. Despite a net cash outflow of EUR 31 million due to investments, free cash flow amounted to EUR 44 million (Q2 2024: EUR 41 million).
CEO Kerkhoff: “Our strategic approach is driving sustainable growth”
Guido Kerkhoff, CEO of Klöckner & Co SE, attributed the company’s success in the second quarter to its strategic direction. Kerkhoff stated, “By increasing our electrical steel capacity and making targeted acquisitions, we are unlocking new potential and strengthening our position as a leading metal processing company. This means we are paving the way for sustainable and profitable growth and accelerating Klöckner & Co’s transformation in our core markets of North America and Europe.”
Investment push in electrical steel
The company has accelerated its investments in electrical steel capacity, particularly to meet growing demand in North America. The newly established high-tech production and service facility will provide services in areas such as cold-rolled grain-oriented (CRGO) electrical steel processing, slitting, and transformer core production. The facility is scheduled to reach full capacity by the third quarter of 2025.
Portfolio expands with new acquisitions
In June, Klöckner & Co acquired Ambo Stahl, based in Cologne. Specializing in wear-resistant and high-tensile steel, this acquisition facilitates the company’s access to new growth areas, particularly in the defense and security sectors.
Additionally, the acquisition of Swiss building services company Simfloc through Debrunner Koenig Group has strengthened Klöckner & Co’s position in the Swiss market. With this move, the company has become the first firm in Switzerland to offer end-to-end building installation solutions.
Strong outlook for 2025 and beyond
Despite the ongoing uncertainty in the macroeconomic environment, Klöckner & Co has a positive outlook for the third quarter of 2025. The company anticipates a significant increase in shipments and sales, particularly due to strong demand and price advantages in the North American market. Adjusted EBITDA for the third quarter of 2025 is expected to be between EUR 40 and 80 million.
For the full year, despite the relatively weak performance in the European market, a slight increase in shipments and sales is targeted. The company’s adjusted annual EBITDA forecast is set at between EUR 170 and 240 million. Klöckner & Co also expects to generate positive cash flow from operational activities throughout the year.
Seasonal lull keeps European HRC market subdued, despite ArcelorMittal price hike plans
The European hot rolled coil (HRC) market has remained largely stagnant this week, with trading activity subdued in line with seasonal trends.
Domestic HRC prices are mostly unchanged, showing only a marginal upward movement after leading producer ArcelorMittal announced its intention to raise prices by €20/mt for October delivery. At the same time, market participants reported limited spot demand, with buyers largely adopting a wait-and-see approach amid uncertain consumption trends and stable inventory levels. Import offers have continued to edge higher, reflecting firming global prices, but concluded deals were scarce. Most successful transactions have been closed at competitive or discounted prices, as buyers have remained reluctant to commit to higher-priced material in the current market environment, also citing concerns over the potential cost implications of the EU’s Carbon Border Adjustment Mechanism (CBAM).
Specifically, according to sources, this week leading European producer ArcelorMittal has increased its offers for October delivery HRC by around €20/mt to €610/mt ex-works in northern Europe. At the same time, most local HRC prices from mills in northern Europe, for mainly October delivery, have been estimated at €580-590/mt ex-works, compared to €580/mt ex-works last week, while the tradable price level has settled at €560-570/mt ex-works levels, up by €10/mt week on week.
Meanwhile, in Italy, indicative offers from mills have been estimated at €550-570/mt ex-works, for September and October deliveries, the same as last week. However, according to sources, customers have still been aiming for €525-530/mt ex-works, the same as last week.
In the meantime, while most buyers’ target price for import HRC has remained in the range of €450–500/mt CFR, depending on the supplier, some overseas mills have raised their offers this week. According to sources, a deal for around 80,000 mt of ex-Indonesia HRC is reported to have been signed at the end of last week at around $550/mt CFR Italy, which translates to around €475/mt CFR.
Besides, while offers for ex-India HRC have been estimated at around €515/mt CFR southern Europe, the same as last week, a deal for ex-India coils has been signed at $598-600/mt CFR Antwerp, which translates to around €516-518/mt CFR.
Furthermore, offers for ex-Turkey HRC have been voiced at €510-520/mt CFR southern Europe, duty included, compared to €500-520/mt CFR last week. Offers for ex-Algeria HRC have settled at €520/mt CFR, up by €5/mt week on week.
$1 = €0.86
Metso considers divestment of loading and hauling business in Finland and Sweden
Metso Outotec Corporation, a leading global engineering and technology provider headquartered in Finland, has announced that it is considering a potential divestment of its loading and hauling business operations in Finland and Sweden.
This strategic move aligns with the company’s broader objective to concentrate on scalable and financially strong core segments.
Strategic refocus could impact 110 jobs
According to the company’s announcement, the loading and hauling segment, which is mainly focused on manufacturing truck bodies, buckets, and tools for mining and aggregate applications, may be sold to an external party. If a suitable buyer is not identified, the operations may be gradually discontinued.
This restructuring could impact approximately 110 employees across the units located in Kokkola and Kalajoki, Finland, and Luleå, Sweden. Consultation processes have already started in both countries, following respective local labor laws.
“Best value can be realized under new ownership”
Metso stated that the decision is part of its commitment to enhancing long-term business profitability and global scalability. The company believes that the loading and hauling segment has future potential, but this potential can be better unlocked under new ownership.
“We believe that the business’ value and future potential can be best realized under new ownership. We will work actively to identify the interested parties,” the company’s official statement read.
EU delays countermeasures on US goods for six months
In a significant development for transatlantic trade, the European Commission has for the third time delayed planned countermeasures targeting €93 billion worth of US goods, for a period of six months, according to media reports.
Initially set to take effect on August 7, the move comes in the wake of a political agreement reached between the EU and the US on July 27.
Olof Gill, EU Commission spokesperson, confirmed the delay, emphasizing that, while the agreement is not legally binding, it offers immediate relief to EU exporters. This step is seen as a temporary de-escalation in what could have evolved into a full-scale trade dispute.
The deal on July 27 introduces a 15 percent tariff rate on the vast majority of EU exports to the US. The deal provides short-term stability for EU exporters and allows both parties time to formalize a political agreement through internal legal procedures.