Friedrich Merz to call steel summit
German chancellor Friedrich Merz says he will schedule summits for the steel and automotive industries, which are both suffering from economic recession.
His announcement last week was in reaction to requests from numerous mills that have expressed the need for a high level meeting of industry with policymakers.
“I will very soon invite steelmaking companies as well as unions and [governments of] the states with steel production,” he said in a televised address. The aim is to retain a steel industry in Germany, he added.
The move has been welcomed by steel federation Wirtschaftsvereinigung Stahl. “Steel is not only the backbone of virtually all value chains, but also a cornerstone of our democracy and freedom,” says managing director Kerstin Maria Rippel.
In a statement sent to Kallanish upon request, she underlines that Europe’s future defence capabilities, competitive strength, and economic stability are at stake. “Securing the steel industry is therefore not only an economic policy task, but also a core component of the country’s security and resilience,” she notes.
Christian Koehl Germany
UNESID urges stronger European steel trade measures
Spanish steelmakers association UNESID has warned that current trade tensions between the European Union and the United States are putting the steel industry at risk. In a letter to trade minister Carlos Cuerpo, the association stressed that the US decision to impose a 50 percent tariff has effectively shut its market to European steel, forcing trade flows from third countries into the EU.
This has created what UNESID describes as a “high-risk scenario” for both producers and consumers in Spain and across Europe, undermining the competitiveness and long-term viability of the sector.
Failures of current safeguards
Despite multiple revisions, UNESID argues that the EU’s safeguard measures have been ineffective. Key data highlight the problems:
Since 2018, EU steel consumption has fallen by 16 percent.
At the same time, import quotas rose by 23 percent, often being exhausted instantly.
Imports of processed steel-intensive products – including metal structures, electrical components and metal furniture – have sharply increased.
Carola Hermoso, UNESID’s director general, issued a stark warning:
“Europe cannot afford a weak trade defense instrument. Without decisive action, unfair imports will flood the market and threaten the entire steel value chain.”
UNESID’s proposed trade defense measures
To address the shortcomings of current safeguards, UNESID is urging the Spanish government to defend the following proposals at the European Commission:
Reduce imports to 2012/2013 levels.
Apply a 50 percent out-of-quota tariff (similar to the US), with no country exemptions.
Adopt the “melted & poured” rule to ensure steel traceability.
Expand tariff coverage to processed products at risk, with no quotas.
Steel industry’s strategic role
UNESID emphasized that steel remains a strategic industry for Spain and Europe, contributing to:
Decarbonization goals through sustainable production.
Quality employment and industrial innovation.
Circular economy leadership within the EU.
The association urges Spain to take a decisive role in Brussels, ensuring Europe maintains a fair and balanced framework that protects both producers and users of steel against unfair trade practices.
Germany’s SHS Group advances Power4Steel with hydrogen supply deal
The German SHS Group (Stahl-Holding-Saar), together with its subsidiaries Dillinger, Saarstahl and ROGESA, has taken a major step in steel decarbonization by signing a long-term contract with French energy company Verso Energy, according to media reports. Under the agreement, SHS Group will receive at least 6,000 mt of certified green hydrogen annually.
Advancing its Power4Steel project, SHS Group ultimately plans to use up to 120,000 mt of hydrogen per year in its final expansion phase, positioning itself as the largest hydrogen customer in the region.
Hydrogen supply to start in 2029
SHS Group initiated a closed tender process in March 2024 to secure regionally produced green hydrogen, as previously reported by SteelOrbis. Verso Energy won the tender and will supply hydrogen over a ten-year period starting in 2029, with an annual minimum of 6,000 mt.
The hydrogen will be certified as Renewable Fuels of Non-Biological Origin (RFNBO), ensuring it is produced exclusively with renewable electricity.
Impact on steel production and carbon reduction
With the integration of hydrogen, recycled steel scrap and advanced technologies – including a new direct reduction plant and electric arc furnaces at Dillingen and Völklingen – SHS Group expects to cut its carbon emissions by up to 55 percent by the early 2030s, aligning with EU decarbonization funding requirements.
Verso Energy’s investment in electrolyzer infrastructure
To support this supply, Verso Energy will construct an electrolyzer worth more than €100 million, powered entirely by renewable energy. The hydrogen produced will flow through the Moselle-Saar Hydrogen Conversion (mosaHYc) pipeline network to SHS Group’s Dillingen plant, where it will be used in CO2-reduced steelmaking.
EU HRC market stalls as demand lags, imports curbed by CBAM risks
The standstill in the European hot-rolled market continued on Monday September 8, with prices holding steady due to an offer-bid mismatch keeping trading quiet, sources told Fastmarkets.
Fastmarkets’ calculation of the daily steel HRC index, domestic, exw Northern Europe was €577.08 ($676.04) per tonne on Monday, down by €1.25 per tonne from €578.33 per tonne on Friday September 5.
The Northern European index was down by €2.09 per tonne week on week, but up by €1.45 per tonne month on month.
Buyers in Germany and the Benelux region estimated tradeable values at €570-580 per tonne ex-works, with transactions reported within the range.
Suppliers reported HRC offers for October-November delivery at €600-630 per tonne ex-works.
Buyer sources remained cautious about higher offers, claiming that the current price recovery was “fragile” and lacking support from the demand recovery so was therefore unsustainable.
“[HRC] prices are fragile; up to now there is no intention to restock,” one German buyer told Fastmarkets.
Another buyer source suggested there was a room for domestic prices to increase slightly during the fourth quarter, given looming uncertainty around the Carbon Border Adjustment Mechanism (CBAM) and new safeguard measures, which was limiting appetite for new imports.
“European mills will have a window of opportunity to increase domestic prices, if they don’t aim too high; in which case buyers might still weigh the risks and opt for imports,” a second buyer said.
Consultations on CBAM will run until September 25, with the final document expected to be published during the fourth quarter 2025, Fastmarkets reported.
Meanwhile, in Southern Europe, Fastmarkets’ daily steel HRC index, domestic, exw Italy was calculated at €550.42 per tonne on Monday, down by €0.31 per tonne from €550.73 per tonne on Friday.
The index was up by €6.67 per tonne week on week, but down by €0.83 per tonne month on month.
The Italian HRC market was still quiet after holidays, with minimal trading reported.
Local buyers purchased sufficient amounts of coil from overseas and local suppliers in end July/early August and therefore were in no hurry to restock
Buyers estimated achievable values at €540-550 per tonne ex-works. Some buyers gave lower estimations of €530-540 per tonne ex-works, but suppliers claimed they were not ready to sell below €540 per tonne ex-works.
Import offers were limited, with European buyers hesitant to commit to Asian cargoes given long lead times (arrivals as late as January 2026 ) and the associated CBAM risks.
Turkish suppliers, who were able to offer late-November delivery, have already sold out their July–September 2025 allocation. A new allocation will open on October 1, but sources expect it to be consumed quickly within the month.
Offers from Turkey remained around €520-540 per tonne CFR, including the EU anti-dumping duty.
From India, offers were reported at €520-530 per tonne CFR for October-November shipment of HRC.
Polish rebar prices continue to fall amid limited demand
Polish rebar prices fell further in the week to Friday September 5, with a continuing lack of demand pushing mills to lower their offer prices again, sources told Fastmarkets.
Market participants reported offers for rebar at around 2,370-2,420 zloty ($653-667) per tonne CFR in the week to Friday, compared with 2,400-2,430 zloty per tonne CFR the previous week.
Mills are struggling to keep prices stable due to the “weak demand levels” and uncertainty around September scrap prices, Fastmarkets understands.
Some sources said that a slowdown in the construction sector as Autumn approaches was another reason for the lower prices.
Fastmarkets’ weekly price assessment for steel reinforcing bar (rebar) domestic, cpt Poland was 2,370-2,420 zloty per tonne on Friday, down by 10-30 zloty per tonne from 2,400-2,430 zloty per tonne on August 29.
Regarding imports, some German mills were reported offering rebar at €560 ($656) per tonne, delivered.
Polish wire rod prices, meanwhile, remained stable in the week to Friday.
Fastmarkets’ weekly price assessment for steel wire rod (drawing quality), domestic, delivered Poland was unchanged at 2,580-2,650 zloty per tonne on Friday, unchanged.
France’s steel product export value down 5.1 percent in H1 2025
According to the statistics released by the French Ministry of Economy, Finance and Industry, in the January-June period this year, France’s basic steel product and ferroalloy exports amounted to a value of €4.91 billion, decreasing by 5.1 percent year on year and imports amounted to a value of €4.65 billion, decreasing by 12.7 percent year on year.
In the given period, France exported €643.35 million of steel pipes and tubes – down 7.2 percent, €228.62 million of cold rolled steel bars – down by one percent, €326.05 million of cold rolled steel strip – down 17.9 percent, €150.21 million of cold drawn wire – decreasing by 14.6 percent, and €456.91 million of metal structures and parts – rising by 1.8 percent, all compared to the same month of 2024.
France imported €1.02 billion of steel pipes and tubes – down 4.4 percent, €273.65 million of cold rolled steel bars – up by 5.9 percent, €341.47 million of cold rolled steel strip – dropping by 8.9 percent, €251.99 million of cold drawn wire – falling by 4.6 percent, and €1.32 billion of metal structures and parts – decreasing by 6.8 percent, all compared to the same period of 2024.
ArcelorMittal to trial electric heating and thermal energy storage technology in steelmaking
ArcelorMittal has announced that it has invested in US-based Electrified Thermal Solutions (ETS) through its XCarb® Innovation Fund, a vehicle launched in 2021 to support disruptive technologies for steel decarbonization.
Joule Hive™ thermal battery in steelmaking
ETS has developed the Joule Hive™ Thermal Battery (JHTB), a system made of electrically and thermally conductive firebricks contained within an insulated steel unit. It charges by passing renewable electricity directly through the firebricks, storing low-cost, carbon-free thermal energy at temperatures of up to 1,700°C. The stored heat is released by circulating air or gas through channels, delivering high-temperature energy for industrial processes.
High-temperature heat is widely required in steelmaking, including in blast furnace hot stoves, slab reheating before rolling, and finishing processes such as quenching and annealing. At present, these processes typically rely on fossil fuels such as steel plant gases or natural gas. The JHTB therefore offers potential to decarbonize critical stages of the steel production chain.
Demonstration plant under construction
A 5MWh demonstration plant is currently under construction at the Southwest Research Institute in Texas, with commissioning scheduled for late 2025.
Alongside the investment, ArcelorMittal has signed an MoU with ETS to conduct validation tests at its GasLab facility in Asturias, Spain, and explore pilot-scale deployment across its global operations.
Strategic importance for decarbonization
ArcelorMittal stressed that electrifying high-temperature heating is essential to reducing fossil fuel dependence.
ETS added that collaboration with ArcelorMittal could accelerate commercialization, offering a low-disruption, cost-effective route to decarbonizing one of the hardest-to-abate industries.
Thyssenkrupp chief demands European Steel Content tender quota
The head of thyssenkrupp Steel, Dennis Grimm, has called for a “European steel content” quota in public tenders.
His plea is linked to the €500 million ($583m) “Special Federal Budget for Infrastructure” launched by the German government. The spending only makes sense if the tenders require the use of steel made in the EU, which is not the case yet, he says. “It would be grotesque if the German special fund becomes a booster for imported steels that were subsidised in China,” he notes in a guest article for business weekly Wirtschaftswoche.
“Grotesque” is the word he also uses for the fact that the EU still allows the import of Russian slab into Europe. By doing so, Europe is helping finance Russia’s aggression, while domestic mills need to cut back their workforce, he argues. “I am lacking the imagination on how to bring this home to my employees,” he writes in the article seen by Kallanish.
Grimm identifies three main issues on which policymakers must act as soon as possible. Apart from a European content quota, he names the Carbon Border Adjustment Mechanism (CBAM) and trade protection against subsidised imports. Here he refers to the tangible proposal from the European Commission to halve the current import quota, and to impose a 50% duty on imports above the limit.
“Eleven countries are supporting this proposal, but not Germany, the number one steel producing country”, for concern of rising prices for consumers, Grimm points out. However, these costs would be manageable, with approximately €50 more for a passenger car, and €1 more for a washing machine.
“We can live with that, rather than with the demise of entire value chains, which would then be irreversible,” Grimm warns.
Christian Koehl Germany
French post-holiday market reopens sluggishly, prices mostly flat
The French steel market remains subdued after the August holiday period. Prices are largely unchanged from July levels, with buyers seeing no justification for increases at this stage, Kallanish notes.
Some long product prices weakened over the summer, driven largely by competitive imports from Spain and Italy, particularly Spanish merchant bar and Italian rebar. According to one distributor, Italian rebar has at times reached southern France at discounts of up to €50/tonne ($58/t) compared to domestic prices.
French buyers are resisting ArcelorMittal’s latest, €30/t hike on European long products, as downstream demand is showing no sign of improvement. Market sentiment remains weak, with companies discouraged by sluggish steel consumption and a concerning political uncertainty which limits any investment plans.
Following a seasonally slow August, conditions are described as particularly challenging, with only “a handful of hard-fought transactions” taking place, according to one market observer.
Market participants expect prices to remain broadly stable, with scrap values likely to soften slightly. Profitability remains a key concern. Producers have announced a €20/t increase on tubes and sheets, aligning with the recent uptick in coil prices and anticipated rises on flat products driven by CBAM and the safeguard replacement measure. Buyers are currently resisting these price hike attempts.
In the longs segment, foreign merchant bar producers who attempted price increases in France in recent months have lost orders. Buyers expect this trend to persist. Current merchant bar quotes stand at €220-230/t base delivered for larger volumes, excluding size extras. Rebar prices have also softened by around €10-15/t since mid-July. They are now at €590-610/t delivered, depending on volume. Sections prices remain stable at €760/t delivered.
A major buyer reports he will not place orders for long products in France at higher prices, citing weak downstream demand and tight margins. While volumes are “not that bad”, low profitability is driving many firms to pressure producers to maintain values.
Natalia Capra France
Germany to hold steel and automotive summits: IG Metall calls for concrete results
German Chancellor Friedrich Merz has announced plans to convene both a steel summit and an automotive summit to address mounting industry challenges.
According to official government press records, the summits will bring together steel producers, automotive manufacturers, trade unions, and federal states in the near future. The exact dates will be announced once preparations are complete.
IG Metall welcomes decision
The metalworkers’ union IG Metall welcomed the announcement, stressing that workers urgently need concrete solutions amid job losses, uncertainty, and lack of prospects across the steel and automotive industries.
Steel industry: need for concrete results
The steel summit carries particular importance for Duisburg, home to Europe’s largest steelmaking hub. Jürgen Kerner, vice chairman of IG Metall, emphasized that, while Merz’s commitment to Germany as a steel production hub is welcome, lip service is not enough, and tangible outcomes are needed rather than delays.
IG Metall’s key demands:
- Effective EU tariff regulations to counter steel dumping from China and Russia
- Competitive industrial electricity prices starting January 1, 2026
- Corporate responsibility to avoid plant closures and relocations
For Duisburg and beyond, IG Metall stressed that the summits must not become symbolic events. Kerner underlined that the challenges are well-known, and solutions already exist, while what is required now are concrete results that send a clear signal to employees and project jobs.
Automotive industry: jobs versus relocation
In the automotive sector, Christiane Benner, first chair of IG Metall, criticized recent job cuts and called on employers to end relocation debates. Instead, she urged cooperation with workers to ensure job security and foster innovation in the industry.