Staalfederatie calls for urgent clarification on CBAM
The Koninklijke Staalfederatie has issued a strong call for clarification regarding the implementation of the Carbon Border Adjustment Mechanism (CBAM), warning that the current framework risks causing serious disruption to the Dutch manufacturing industry and wider European steel supply chains.
According to the Staalfederatie, the introduction of CBAM — designed to apply a carbon price to imported products in order to ensure a level playing field with EU producers subject to strict climate policies — remains highly complex in practice for the Dutch steel market. While the mechanism aims to prevent carbon leakage and protect European industry, its operational rollout is creating uncertainty across the supply chain.
A central concern is the absence of a fully workable verification procedure for embedded emissions. The first financial settlement under CBAM will take place in 2027 for imports made in 2026. However, importers currently lack clarity on how actual emissions will be verified. In the meantime, many companies must rely on default values established at EU level. These values are reported to be significantly higher than expected real emission intensities, resulting in potentially inflated cost projections.
This uncertainty makes it difficult for importers to determine final cost exposure and, consequently, what should be passed on to customers. The Federation warns that this situation could have serious implications for the competitiveness of downstream companies operating within the Dutch manufacturing sector. At present, comparable levies have not yet been introduced for many downstream products, adding to market imbalance risks.
Staalfederatie also highlights broader implementation challenges. Available calculation tools and current default values are said not to provide a realistic picture of the financial impact. In some cases, existing commercial contracts may no longer be economically viable once full CBAM costs are factored in. As a result, price predictability is weakened and supply chain stability may be affected.
In addition, practical compliance obligations — including mandatory registration in the CBAM registry and authorisation by the Dutch Emissions Authority for imports exceeding 50 tonnes of steel or aluminium — add further administrative complexity.
Staalfederatie therefore calls for the CBAM system to be simplified and made operationally workable as quickly as possible. In particular, it urges the accelerated introduction of a functioning verification process, no later than 1 July 2026, to ensure that companies gain timely clarity on the real financial impact and can price contracts for 2027 with greater certainty.
European steel HRC sentiment positive as market leader pushes for higher prices
The mood in the European domestic steel hot-rolled coil markets was upbeat on Monday February 16 amid news that the market leader was pushing for higher prices, Fastmarkets has heard.
Earlier in the day, several market sources reported that ArcelorMittal had increased its offer price for hot-rolled-coil to €750 per tonne delivered Northern Europe for May delivery, from the price of €700 per tonne delivered that was announced for April-delivery coil.
The information had not been officially confirmed by the company at the time of publication of this report. Few market sources believed that there would be an official announcement of this price rise by the company in the next few days, with strong order books being given as one of the key reasons for the upbeat tone.
One source reported the supplier selling some tonnages at €700 per tonne delivered, which would be equivalent to €685 per tonne ex-works.
“They want to pass the €700 per tonne delivered threshhold,” another buyer said.
Estimates of workable prices from other integrated mills in the region were said still to vary within the range of €650-660 per tonne ex-works, with an offer from a re-roller in the Benelux area reported at €650 per tonne ex-works, with trading said to be muted.
Fastmarkets’ daily steel hot-rolled coil index, domestic, exw Northern Europe, was €660.00 ($782.34) per tonne on February 16, up by €4.17 per tonne from €655.83 on February 13.
The index was up by €6.67 per tonne week on week and by €19.50 per tonne month on month.
In Italy, the workable price range was very wide, depending on the tonnage, at €630-660 per tonne exw.
Minor tonnages were reported sold at €650-660 per tonne ex-works, while large tonnages, which were nowadays an exception, changed hands at €630-640 per tonne ex-works.
Fastmarkets’ daily steel HRC index, domestic, exw Italy, was calculated at €651.60 per tonne on February 16, up by €4.10 per tonne from €647.50 per tonne on Friday.
The index was up by €6.60 per tonne week on week and up by €20.35 per tonne month on month.
Klöckner boards recommend acceptance of Worthington takeover
Steel distribution group Klöckner & Co’s management board and supervisory board have jointly recommended that shareholders accept Worthington Steel’s voluntary public takeover offer, Kallanish notes.
“Following careful review of the offer document, the boards have independently concluded that the offer is in the best interests of the company and its stakeholders,” the boards say in a joint message. “In assessing financial adequacy, the management board and supervisory board also considered the opinions of their respective financial advisors Goldman Sachs Bank Europe and Deutsche Bank. We welcome the offer and recommend that Klöckner & Co shareholders accept Worthington Steel’s offer and tender their shares.”
The members of the management board will tender all shares held by them into the offer. In addition, according to the bidder’s notification, SWOCTEM GmbH, the largest shareholder of Klöckner & Co, has already tendered its entire stake of approximately 41.53% in Klöckner & Co into the offer, they add.
Worthington Steel is offering Klöckner & Co shareholders €11 ($13) in cash per share. The implied total enterprise value of the transaction is approximately €2.1 billion ($2.49 billion),
The offer price represents a premium of approximately 81% on the closing price of the Klöckner & Co share on 5 December 2025, the last day before negotiations regarding a public takeover offer by Worthington Steel were publicly announced. And approximately 98% based on the undisturbed three-month volume-weighted average price of the Klöckner & Co share up to 5 December 2025.
The management board and supervisory board consider the offer price to be attractive, fair and reasonable.
The acceptance period is expected to end on 12 March 2026. Klöckner shareholders can accept Worthington Steel’s takeover offer through their custodian bank and tender their shares into the offer.
The business combination agreement signed on 15 January 2026 between Klöckner & Co and Worthington Steel sets out the key parameters of the planned business combination. The objective of the agreement is to create a foundation for sustainable growth through the complementary orientation of both companies and to expand market presence in Europe and North America.
As part of the partnership, Worthington Steel supports Klöckner & Co’s strategy to focus on higher value-added products and services, and has commited to the long-term development of the group.
Automotive suppliers urge EU to stop industrial exodus
European automotive suppliers are calling for the implementation of technology neutrality to ensure innovation drives decarbonisation – not restrictive mandates, according to the European Association of Automotive Suppliers (CLEPA).
The upcoming Industrial Accelerator Act presents a clear opportunity to keep automotive manufacturing in Europe but its success hinges on one key question: how the EU defines ‘European-made’ components, it claims.
“This is no trial period: Automotive suppliers have announced over 100,000 job cuts since 2024,” says Benjamin Krieger, secretary general of CLEPA. “There is no strong European economy without the factory floors to support it. Right now, with high energy costs and fragmented regulations slowing companies down, producers in Europe are placed at a structural disadvantage. Measures to restore EU competitiveness will take time to deliver, that is why we need local content policies now.”
It references a recent study by Roland Berger reveals that automotive suppliers in the European Union face unfair competition from regions with lower costs, fewer regulations, unilateral tariffs, excess capacity, dumping and subsidies – a combination that threatens up to 350,000 European jobs until 2030, Kallanish notes.
“Importing the cheapest technology today hollows out our innovation capacity tomorrow,” CLEPA adds. “If Europe allows its value chains to erode, we will end up with empty factories – we will trade European independence for permanent dependency on regions with cheaper labour and weaker legal requirements.”
“The Industrial Accelerator Act must be robust. Specifically, it needs an adequate definition of ‘European-made’ vehicles and components,” it notes. “A European vehicle should consist of at least 75% European components. This level is realistic and would not drive-up prices. The study by Roland Berger shows that more than 80% of the components used in vehicles built in the EU already come from European suppliers.”
Automotive suppliers are the engine of Europe’s green transition, investing €30 billion ($35.5 billion) annually in research and development. For these innovations to succeed at scale, however, policy must align with consumer demand. Deloitte’s 2026 global automotive consumer study shows that internal combustion engines remain the leading choice for nearly half of buyers in Germany, France, and the UK while consumer preference for hybrids has risen to 14% in Germany and 23% in France.
To survive global competition and to ensure our strategic autonomy in manufacturing, the EU must move from promises to implementation, delivering these measures fully, and without further delay, CLEPA concludes.
Coalition urges EU to strengthen low-carbon demand, markets
A coalition of European industry players, which includes GravitHy and Hydnum Steel, is calling on the European Commission to strengthen the upcoming Industrial Accelerator Act (IAA) and implement demand measures to boost low-carbon industrial products.
E3G, Hydrogen Europe, and Mission Possible Partnership are just some of the 40 organisations also supporting the call.
“Demand-side provisions appear largely confined to public procurement and public support schemes, as well as restricted to a few sectors, namely steel… We strongly support demand-side initiatives for the public sector as an effective lever to create demand. However, the public sector alone cannot create sufficient demand for low-carbon products at scale, and the limited number of sectors targeted risks increasing market fragmentation,” a joint statement seen by Kallanish says.
It adds that the Commission’s internal draft is unclear as to whether low-carbon requirements for public procurement and public schemes would be complementary or subordinated to origin-based criteria.
The signatories argue that without stronger market measures that scale up demand, European producers of low-carbon products will struggle to compete globally.
They recommend a range of policy tools, including EU harmonised product standards, mandatory green public procurement with minimum content quotas for low-carbon and EU/EEA origin requirements, and mechanisms to stimulate private demand through mandates and financial de-risking instruments.
The IAA is expected to play a key role in implementing parts of the European Commission’s Clean Industrial Deal by scaling up low-carbon manufacturing and creating competitive conditions for European products.
The signatories warn that simply relying on public sector procurement will be insufficient to drive the transition to net-zero technologies. They say that stronger demand instruments will help secure investment, maintain jobs and attract new players to Europe’s clean industrial value chains.
The IAA is currently under development and expected to be presented by the Commission as part of its 2026 work programme.
GravitHy is building a green hydrogen-based direct reduced iron and hot-briquetted iron plant in Fos-sur-Mer, Southern France. The facility is projected to produce up to 2 million tonnes/year of DRI and HBI, fed with hydrogen produced by a 750 MW electrolyser (see Kallanish passim).
Bosnia to introduce 30% steel import duty: reports
Bosnia plans to impose a 30% tariff on steel imports for 200 days, according to eKapija.
Bosnia’s Ministry of Foreign Trade and Economic Relations has prepared the proposal in response to a request from local steelmaker Nova Zeljezara Zenica. “It is subject to approval by the Council of Ministers of Bosnia and Herzegovina following public consultations. The rationale for this move is to protect local production,” authorities are quoted as saying.
Ministry data show the overall increase in reinforcing mesh imports to Bosnia last year was 192.87% compared to the four-year average. Serbia was the main supplier, providing over 9,000 tonnes, a 408% increase over the 2021-2024 period, according to the ministry data.
Imports of rebar in coils from Turkey in 2025 increased by 885% compared to the four-year average, while imports of rod increased by 229.56%.
Italy ranked second with imports of 7,794t, double the previous period’s figure, Kallanish notes.
The ministry views this as obvious pressure from foreign manufacturers selling their products in Bosnia, while local capacity remains unused. “This practice threatens the overall stability of the construction sector, as consumers become dependent on imported products already present on the domestic market,” the ministry notes.
The Foreign Trade Chamber of Bosnia and Herzegovina (VTK/STKBiH) urged Bosnian authorities to lodge a complaint with Serbia and the Central European Free Trade Agreement (CEFTA) joint committee over Serbia’s new steel import quotas.
The quotas are in effect since 1 January and impact rebar, wire rod and hot and cold rolled steel, with a 50% duty imposed on imports above the allocated tonnages (see Kallanish passim). The measure is valid for six months.
ArcelorMittal temporarily shuts down BF in Spain
ArcelorMittal says it has shut down blast furnace B at its Gijón plant in Spain. The decision was made on Thursday following the company’s failed efforts to ignite the operation using complex methods after completing maintenance in September.
“Due to the unsuccessful outcome of the process to stabilise BF B, we decided to initiate the process for the cold idling and emptying of the facility to be able to subsequently restart the facility safely,” ArcelorMittal’s spokesperson tells Kallanish.
The steelmaker estimates that the work will last several months before the BF can resume operations.
“We will try to minimise the impact of this measure and will organise the necessary resources to protect the needs of our customers to the fullest extent throughout the duration of this temporary shutdown,” ArcelorMittal adds.
Currently the steelmaker operates a single blast furnace in Spain. That limits the supply of pig iron for the finished steel production at the Gijón and Avilés lines, forcing ArcelorMittal to import billets from its other European plants.