European steel HRC prices edge upward as mills set higher offers
European prices for steel hot-rolled coil increased on Wednesday August 20, with suppliers pushing for higher figures, trade sources told Fastmarkets.
Integrated steelmakers in Northern Europe kept their offers of October-delivery HRC at €590-610 ($687-711) per tonne ex-works.
Earlier this week, several trade sources told Fastmarkets that leading European steelmakers had increased their offers for November-delivery material to €630 per tonne ex-works or delivered, but this was not confirmed.
Sources familiar with the market told Fastmarkets that producers’ offers for October-delivery coil were at €610 per tonne ex-works or delivered, while November sales “were not really open yet.”
In any case, buyer sources gave much lower estimates of achievable prices for HRC in the region, at €560-580 per tonne ex-works.
Transactions in Germany were reported within the range of €560-570 per tonne ex-works.
“Suppliers are trying to push for higher prices, but buyers are not accepting those offers,” a market source said. “The Asian market remains competitive and the [EU’s Carbon Border Adjustment Mechanism] is also going to affect prices.”
Fastmarkets’ calculation of the daily steel HRC index, domestic, exw Northern Europe, was €573.75 ($668.29) per tonne on August 20, up by €2.50 per tonne from €571.25 per tonne on August 19.
The Northern European index was up by €4.42 per tonne week on week and €22.08 per tonne month on month.
In Italy, meanwhile, one local integrated mill was heard seeking €580 per tonne ex-works and a European supplier was offering coil to the nation at €600 per tonne delivered.
Achievable prices were estimated at €530-540 per tonne ex-works by buyers and at €540-550 per tonne by sellers.
Trading activity in the nation remained minimal due to continued holiday absences.
Fastmarkets’ daily steel hot-rolled coil index, domestic, exw Italy, was €538.33 per tonne on Wednesday, up by €0.83 per tonne compared with €537.50 on Tuesday.
The Italy index was up by €16.60 per tonne week on week and by €13.33 per tonne month on month.
Prices for overseas coil were also slightly up in the week to Wednesday.
Fastmarkets’ weekly price assessment for steel hot-rolled coil, import, cfr main port Southern Europe, was €470-520 per tonne on Wednesday, narrowing upward from €460-520 per tonne the previous week.
The lower end of the range reflected offers from Indonesian suppliers, which were heard at €470-475 per tonne CFR, while the upper and of the range reflected the lower end of offers from Turkey, India and Algeria.
Julia Bolotova, Davide Montagner
The UK government is preparing to take over its third-largest steel plant
According to a court announcement, new administrators have been appointed to take control of Speciality Steels UK (SSUK), a Liberty Steel-owned facility in South Yorkshire. The company, which produces steel using scrap metal, has faced ongoing uncertainty due to its mounting unpaid debts, putting it at risk of liquidation.
This development comes after the government earlier this year took control of the British Steel plant in Scunthorpe to prevent the closure of the country’s last remaining primary steel production facility. SSUK hosts the UK’s largest electric arc furnace, known for its greater energy efficiency and expected to play a key role in the steel industry’s energy transition.
However, the company has long struggled with financial difficulties. The collapse of Liberty Steel’s main lending institution and growing unpaid debts have made it impossible for the company to purchase the scrap metal needed for steel production.
The fate of SSUK now rests with a judge in the High Court. Lawyers for Sanjeev Gupta, chairman of Liberty Steel’s owner GFG Alliance, warned that a potential liquidation order could spell the end of steel production at the plant. Gupta’s legal team has requested a postponement to allow the administrative process to be completed and argued this would avoid the need for direct government intervention.
Creditors’ lawyers, however, submitted a letter from the government to the court, providing assurances that the steelworks could be taken over if necessary. Creditors, who are owed hundreds of millions of pounds, have petitioned the court to force the company into liquidation so its assets can be sold to repay debts.
GFG Alliance, which operates in the energy, trade, and steel sectors and employs thousands across the UK, has been under scrutiny since the 2021 collapse of its main lender, Greensill Capital. Sources close to Gupta have confirmed ongoing talks with investment giant Blackrock to provide new funding to acquire the company through a managed process known as a “pre-pack” administration.
While the government supports policies to back the steel sector, it has repeatedly rejected direct financial aid requests from Sanjeev Gupta. As a result, two difficult options lie ahead: allowing Gupta to retain control of the company, which would likely see much of the creditors’ debts written off but avoid costs to the government; or the government taking over the loss-making steelworks to ensure creditors are paid, a process that could be both costly and lengthy.
In a statement, the government emphasized: “We will continue to closely monitor developments regarding Liberty Steel, including public hearings. We support the appointment of an Official Receiver to take necessary action should the company enter compulsory liquidation.”
Liberty Steel responded, saying, “Our commercial solution, supported by major private equity, will deliver the best outcome for the company, employees, and all stakeholders, without costing UK taxpayers or causing unnecessary uncertainty.”
Germany’s crude steel production decreased by 13.7% in July
According to data released by the German Steel Federation (Wirtschaftsvereinigung Stahl), the pressure on steel production in Germany persisted in July 2025. The country’s total crude steel output declined by 13.7% compared to the same month last year, falling to approximately 2.72 million tons.
A significant part of this decline was driven by reduced output via the blast furnace–converter route (BOF/oxygen steelmaking). Oxygen steel production dropped by 19.6% in July, falling to just below 1.9 million tons.
In contrast, electric arc furnace (EAF) production, which relies on scrap and electricity, showed a slight increase. EAF-based crude steel output rose by 4% to reach 0.82 million tons. However, this increase is seen as a limited recovery, as it came from a low base.
Pig iron production also dropped sharply in July, decreasing by 18.3% to 1.74 million tons. Meanwhile, production of hot-rolled steel products declined by 4.9% to 2.47 million tons.
Looking at the first seven months of 2025, Germany’s total crude steel output decreased by 12.1% year-on-year to 19.83 million tons. During this period, BOF-based steel production decreased by 16% to 13.34 million tons, while EAF-based production decreased by 2.8% to 6.49 million tons. Pig iron production declined by 15% to 12.38 million tons, and hot-rolled steel output decreased by 7.8% to 17.75 million tons.
Green steel industry warns of EU CBAM-safeguard overlap
Stakeholders in the green steel industry have asked the European Commission to exempt low-carbon steel products from any future iteration of the steel safeguards so that the Carbon Border Adjustment Mechanism (CBAM) is not undermined, feedback provided to the commission says.
August 18 was the last day for market participants to submit their suggestions and comments to the commission over the implementation of a trade measure which will address the issue of global excess steelmaking overcapacity. Over the span of one month 143 businesses and stakeholders provided their input to authorities.
“Instead of quotas or tariffs, carbon pricing under CBAM must be applied to these green steel imports,” Singapore-based Meranti Green Steel said. “For out-of-quota duties we recommend zero tariffs for verifiably low-carbon steel and for dimensions where EU supply is insufficient,” trading firm Interfer said.
Meranti estimates that once CBAM is in full swing there will be a shortage of up to 50mn t of green steel in the EU by 2035, while Interfer has said penalising the import of low-carbon steel would directly contradict the EU Green Deal and the purpose of CBAM.
Swedish producer SSAB also pointed out how an overlap between any new potential safeguards and CBAM could double the burden on downstream users.
The implementation of CBAM is still set to go ahead on 1 January 2026, despite market talk of a potential postponement. Participants currently await CBAM guidelines to be published in the autumn.
European green steel producers have not reached any specific consensus on the exemption of low-carbon steel from trade restrictions. Rather their requests are aligned on the implementation of a new stricter tariff-rate quota (TRQ) system to be introduced in the first quarter 2026.
Suppliers which are developing green steel production in the EU such as SSAB, Celsa and Hydnum Steel have all expressed their support for a global TRQ, with a cap per exporting country and tariffs set at 50pc. Celsa and Hydnum Steel have also suggested a melt-and-pour clause to go along with the TRQ.
By Carlo Da Cas
Source: argusmedia.com
EU steel quotas must not disrupt distribution and SMEs
The EU should introduce a global steel import quota with caps for each country, according to a large portion of the feedback submitted to the European Commission in a post-safeguard consultation.
The quota should be global for some products, with lower volumes compared with the current mechanism, according to submissions from buyers and sellers. And the measure should be extended downstream to protect European service centres and their customers, many respondents said.
EU producers want the new measure to cap imports’ share of the flat products market at 15pc, or around 11mn t, and for imports to account for just 5pc, or 2mn t, of the long products market. A 50pc tariff should apply for imports in excess of the quotas. Some buyers agree with this, although others suggest it would be too restrictive.
Mills want the measures to be imposed from January, but trading firms want a later start date to enable them to prepare. “Importers require a minimum lead time of nine months from the publication of any post-safeguard measure to ensure proper adaptation and implementation,” trading company Steelinvest said.
The South Korean government has asked for the new measure to be communicated at least six months in advance, and to not be applicable until the expiration of the current safeguards.
“Above all, rules must be communicated clearly and well in advance of entry into force. Distributors need time to adjust sourcing strategies, while downstream industries require predictability to absorb the transition without disruption. Poorly calibrated or rushed measures risk distorting supply chains, penalising reliable suppliers, and creating volatility — especially for small and medium-sized enterprises,” steel distributors’ association EUROMETAL said, while reiterating its call for downstream measures.
German cold-roller Bilstein said the measure should be indefinite, with a review clause to react quickly to market changes.”A long-term regulatory framework — with periodic, structured reviews — will underpin a sustainable, competitive and resilient European steel industry,” producer ArcelorMittal said in its feedback to the commission.
German trading company Interfer said there should not be tariffs on low-carbon steel and for dimensions where EU supply is insufficient, and tariffs of 5-15pc should be put in place for other material, depending on their availability from EU mills. The European Advanced Carbon and Graphite Materials Association — which represents EU graphite electrode producers — said imports of low-carbon steel should be banned to increase domestic electrode capacity, while scrap exports should be restricted.
EU producers are also pushing for strict melt-and-pour rules, but association Eurometal and South Korean stakeholders said the addition of such a clause should aim to avoid “unnecessary burdens” and requires “clear and detailed guidance”.
By Lora Stoyanova
Source: argusmedia.com
Swedish steel production drops in first half-year
Swedish mills produced 341,000 tonnes of crude steel in June, down 4.1% on June 2024, Kallanish learns from the country’s steel federation, Jernkontoret.
In the first six months the year, a total of 2,170,000 tonnes of crude steel were produced in Sweden, which is 2.1% less than in the same period last year.
The production statistics are compiled by Jernkontoret and are based on data from 11 crude steel manufacturing plants in Sweden.
The year-on-year output decline is likely to continue in the second half-year. The country’s largest steelmaker, SSAB, stated in July that it plans to reduce its production in Europe in H2. It cited weak performance in the second quarter, while its North American unit performed well in the period.
Christian Koehl Germany
Semis, HR flats boost EU’s June imports
EU27 imports of chapter 72 iron and steel products rose 7% on-year in June to 3.75 million tonnes, driven by a surge in semi-finished steel intake. Hot rolled flat steel imports also rose, but cold rolled and coated coil intake declined, Kallanish notes from Eurostat data.
Semis imports from outside the bloc surged 35% to 779,106t in June. Russia was the main supplier and upped its shipments into the EU by 106% to 355,717t. Intake also rose significantly from China and Brazil, by 163% and 77% respectively to 136,539t and 104,252t.
Imports of pig iron however dropped 65% in June to 50,790t, mainly due to Russia supplying zero versus over 100,000t a year earlier as the EU’s Russia-origin pig iron quota was already exhausted earlier this year.
Imports of hot rolled flat steel surged 33% on-year in June to 728,023t, boosted by a large increase from Türkiye, as well as growth from India and Indonesia, while Malaysia and Australia appeared on the list of suppliers.
Shipments from Türkiye surged 83% to 194,994t, while India more than trebled supply to 87,847t and Indonesia increased supply 111% to 84,673t. Australia supplied 59,649t and intake from Malaysia was 41,096t, each versus zero last year.
CR and coated flats imports however each fell 15% in June to 179,624t and 268,381t respectively.
In the first half of 2025, EU chapter 72 imports thus fell 1% on-year to 24.9mt. This was due to declining imports of hot rolled and coated coil, as well as HS code 7213 products, which include wire rod. It came despite growth in imports of semis and pig iron.
Adam Smith Austria