German car production rises 9% in July
Passenger car production at German assembly lines reached a volume of 347,100 units in July, 9% higher than in the same month last year, according to automotive association VDA.
This continues a gentle year-on-year upward trend, Kallanish notes. The first half year, January through June, saw a 4% increase over the same period of 2024. Adding July, production in the first seven months of the year was 5% up y-on-y, totalling 2.5 million units.
However, compared to the pre-crisis year of 2019, year-to-date production of 2025 remains 12% lower.
VDA highlights the production figures for electric cars for H1 saw 864,000 electric cars were produced in Germany, marking a new production record.
The EV share of domestic car production amounts to 40% in H1, versus 30% in the same period last year. VDA continues to estimate that a total of around 1.7mn EVs will be manufactured in Germany this year.
The number of passenger car registrations in July rose by 11% to a volume of 264,800 units. In the seven months of the year, a total of 1,667,600 new passenger cars were registered, 2% fewer than in the previous year.
Christian Koehl Germany
End of steel monoculture proposed for Taranto mill
Acciaierie d’Italia (ADI), is to get a special commissioner to develop industry activities beyond steelmaking, according to a report by press agency Agenzia Nazionale Stampa Associata (ANSA).
The goal is to “escape the steel monoculture,” states the governor of the region of Puglia, Michele Emiliano. An agreement signed by representatives of the national government and regional authorities proposes a new commissioner to oversee the reindustrialisation of the vacant areas of the Taranto plant
“The 18,000 workers who work around the steelworks will need to find a place within a broad reconstruction of the economy and life of the city itself,” said Emiliano.
A call for expressions of interest will explore potential new production investments in the area, Kallanish reads in the report.
With a transition of the plant to DRI steelmaking, fewer workers will be required than traditional coal-fired production, and a strategy to protect workers will be necessary. The redundancies could be partially offset by the construction of the DRI hub for the pre-reduced heat required to power the new furnaces, ANSA writes.
Earlier this month, the Ministry of Enterprises and Made in Italy authorised the publication of a new tender – the so-called “Letter of Procedure II” – for the sale of ADI. The new tender makes decarbonisation of the Taranto site mandatory, not optional (see Kallanish 8 August). Binding offers must be submitted by 15 September, with the draft sale contract to be made available in the data room by 31 August.
Christian Koehl Germany
European steel HRC market quiet, interest in imports fades
The European domestic market for steel hot-rolled coil (HRC) was largely quiet on Monday August 18 with many market participants still on holiday.
Those who were present reported muted trading with most discussions focused on the future of protection measures, including the EU’s Carbon Border Adjustment Mechanism (CBAM) and various options for the evolution of safeguard measures.
A trading source said that customers preferred to book material produced in Europe despite the price being in general €20-30 ($23-35) per tonne higher compared with imports, to avoid any risks connected with uncertainty over the future of import trading.
He reported recent deals from several key producers in Northern Europe being done within the range of €570-580 ($665-677) per tonne ex-works, and a supplier from the Benelux area selling for less than €570 per tonne ex-works.
Offers in the region still varied within the range of €590-610 per tonne ex-works, according to market sources, with the upper end said to be unrealistic and the lower end not yet achieved in deals.
Fastmarkets’ calculation of the daily steel HRC index, domestic, exw Northern Europe, was €575.21 ($671.10) per tonne on August 18, up by €6.04 per tonne from €569.17 per tonne on August 15.
The Italian market was said to be still in a “deep sleep” due to traditional August holidays and maintenance periods.
The latest workable prices achieved in early August before summer break, were around €540 per tonne ex-works.
A mill source said that current target prices for September and October sales were €560-570 per tonne ex-works, but this has not yet been fixed in transactions and was more a target for the moment.
Fastmarkets’ daily steel HRC index, domestic, exw Italy, was €537.50 per tonne on August 18, stable from Friday.
US plans tariffs on steel and semiconductor chip imports
US President Donald Trump is planning to impose new tariffs on steel and semiconductor chip imports, according to media reports, a move that could further shake global trade already strained by US protectionist policies. The tariffs are expected to be announced at low rates initially that would rise sharply over time to encourage domestic production.
US President Donald Trump is planning to impose new tariffs on steel and semiconductor chip imports, according to media reports, a move that could further shake global trade already strained by US protectionist policies. The tariffs are expected to be announced at low rates initially that would rise sharply over time to encourage domestic production.
Tariffs aimed at boosting US manufacturing
- Trump explained that the new tariffs will be at lower rates at the start – giving companies time to adjust and expand US manufacturing capacity.
- Steep increases later – possibly reaching 100 percent or more on semiconductors.
Trump emphasized that exemptions would be granted to companies investing in US production.
Steel tariffs: building on earlier measures
The announcement comes after multiple rounds of tariff hikes on steel and aluminum. In February this year, Trump raised steel and aluminum tariffs to 25 percent, while in May the tariff rate on steel was doubled to 50 percent to further support domestic producers. It remains unclear whether the new announcement signals another increase on tariffs on metals or simply a continuation of current rates.
Impact on global trade
Trump’s tariff strategy has already disrupted global supply chains. Previous measures targeted nearly all foreign exports to the US, alongside sector-specific tariffs on steel, aluminum, and automotive products. With semiconductors at the heart of consumer electronics, AI systems, and industrial technology, the new tariffs could have wide-reaching effects on global markets.
