Day: 1 April 2026

The UK government is preparing to fully nationalize British Steel, nearly a year after introducing emergency legislation that enabled it to take operational control of the company, according to a report by the Financial Times.

The initial intervention aimed to safeguard jobs amid concerns over reduced activity at the company’s facilities under its Chinese owner Jingye Group, particularly following the suspension of coke imports.

Mounting losses increase pressure

British Steel continues to generate significant financial losses, with government support reaching £377 million between April 2025 and the end of January.

According to estimates by the National Audit Office, this figure could rise to £615 million by June and potentially reach £1.5 billion by 2028 if current support levels are maintained.

Ownership constraints complicate restructuring

Despite government intervention, Jingye retains economic ownership of British Steel, limiting the authorities’ ability to sell assets or implement long-term strategic decisions.

Sources indicate that full nationalization is now seen as a necessary step to secure the company’s future. The government is currently assessing legislative options to obtain full control, with steel recently designated as a “strategic national asset,” potentially enabling action under national security provisions.

Negotiations between the UK government and Jingye remain ongoing within a limited timeframe. Jingye has reportedly rejected a £100 million offer for the business and previously sought more than £1 billion in compensation. While discussions continue, no agreement has yet been reached and British Steel has not commented.

Industry support and strategic importance

Industry representatives have expressed support for nationalization. UK Steel director-general Gareth Stace stated that such a move would provide greater certainty for employees, customers and the supply chain during a critical period.

British Steel’s Scunthorpe plant operates the UK’s last two blast furnaces and produces around 95 percent of the steel used in domestic rail infrastructure, underlining its strategic importance.

At the same time, interest in acquiring British Steel has emerged. Investor Michael Flacks is reportedly exploring options to integrate the company with other European steel assets, though any transaction remains uncertain given current legal constraints.

 

Steel hot-rolled coil prices have inched down in Northern Europe in new deals that have come to light, but sentiment remained bullish, primarily driven by limited availability of imports, with some suppliers already indicating higher offers for third-quarter deliveries, sources told Fastmarkets on Tuesday March 31.

A leading European supplier was heard selling HRC aggressively in some parts of Germany and in Poland, several market sources said.

“[A European mill] is selling leftover volumes from May-June delivery coil at prices some €20 [$24] per tonne below the market, apparently to fill gaps in order books. At the same time, indications for July lead times are quite high,” a buyer in Germany said. “We heard an indication of €780 [($917) per tonne delivered] for July delivery [HRC].”

No official offers for July-delivery coil have been confirmed by the mill so far, with most industry sources expecting new indications after Easter.

Delas were heard at €690-700 per tonne ex-works in Germany. In Poland, a transaction was reported even lower – around €695 per tonne CPT.

At the same time, deals were heard at €710-720 per tonne ex-works for small lots of HRC in Germany, from other suppliers.

One German mill kept its offers around €720-730 per tonne ex-works for May-June lead times.

Another German supplier had no spot availability for second-quarter delivery of HRC. Offers for July delivery were €750 per tonne ex-works from that supplier, Fastmarkets understands.

“European mills have big hopes of pushing through new price increases for July – when import [volumes] will be cut in half [because of] new safeguards,” a steel-service center source in Germany said.

Italy-origin coil was traded in Germany at €720-730 per tonne delivered, but suppliers were limiting offered export volumes due to rising freight rates because of the surging gas and oil prices created by the continuing Iran-US-Israel conflict.

Freight rates from northern Italy to southern Germany were estimated at €80 per tonne in late March, compared with around €60 per tonne in February.

In the Benelux area, offers for June delivery coil were heard at €725 per tonne ex-works.

Buyers in Germany and the Benelux area estimated tradeable values at €700-730 per tonne ex-works, depending on tonnage and lead times.

As a result, Fastmarkets’ daily steel hot-rolled coil index, domestic, exw Northern Europe, was calculated at €711.50 per tonne on Tuesday, down by €7.25 per tonne from €718.75 per tonne on March 30.

The index was also down by €4.50 per tonne week on week but up by €25.43 per tonne compared with the last day of February.

And Fastmarkets’ steel hot-rolled coil index, domestic, exw Italy, was calculated at €697.50 per tonne on March 31, up by €2.50 per tonne from €695.00 per tonne on March 30.

The index was unchanged week on week but up by €28.67 per tonne compared with the last day of February.

Local sources estimated achievable prices at €690-700 per tonne ex-works on Tuesday.

Offers from local suppliers for May-June delivery HRC were heard around €700-705 per tonne ex-works,.

Trading has been slow so far in the week commenced March 30, sources said.

“It’s La Settimana Santa [the Christian holy week before Easter] so customers are mostly in standby mode,” a buyer in Italy said.

“Activity is weak, but mills are really not in a rush to sell and buyers have sufficient inventories, so it’s a standstill,” a seller source said.

New offers of imported coil have, meanwhile, were limited and pricey due to soaring logistics costs, the Carbon Border Adjustment Mechanism (CBAM) and new uncertainty on the safeguards.

“Basically, only Turkey and Algeria are in the market with HRC offers to Europe,” one trade source said.

Late in the week commenced March 23, Turkish coil was heard booked to Italy around €610-620 per tonne CFR, including anti-dumping duty but excluding CBAM costs.

From Algeria, offers were heard around €680-690 per tonne CFR to Spain, which was deemed unworkable by buyers.

 

Decarbonisation remains central to investment across the steel sector globally, according to Italian equipment maker Danieli.

The full implementation of CBAM in 2026 will favour electric arc furnace (EAF) producers over traditional blast furnace operators. While COP30 commitments, including net-zero targets by 2060 and a threefold increase in climate finance by 2035, are expected to accelerate the adoption of greener steelmaking technologies, including direct reduced iron (DRI) plants using gas and hydrogen, the group says in its financial statement for the six-month period ended 31 December 2025.

Danieli is well positioned to support the green transition, offering technology across the full metals processing range including steel, aluminium and other metals while targeting net-zero emissions validated by SBTi and CDP. The company adds that advances in research and development over the past decade have helped reduce both capital and operating costs in the metal segment bosting investment opportunities in the industry, Kallanish notes.

The group’s revenue stood at €1.6 billion ($1.84 billion) reflecting a 16% decline on-year. Ebitda reached €191 million, increasing 17% compared to the same period the previous year. Ebitda was supported by strong margins in the Danieli plantmaking segment and a better steelmaking performance from ABS (see separate article).

Danieli’s steel market outlook for 2026 is positive, with prices and volumes expected to recover, particularly in Europe, supported by the introduction of CBAM and tighter import quotas.

Last year China retained its dominant position, accounting for around 52% of global output, while continuing to shift towards EAF steelmaking to reduce emissions.

A moderate recovery in Europe is expected to partially offset slowdowns in the US and China. The US is forecast to grow 2.4% in 2026 and 2.0% in 2027, while China’s growth is projected at 4.5% and 4% respectively, weighed down by real estate sector challenges.

India remains a bright spot, with growth estimated at 7.3% in 2025 and 6.4% in both 2026 and 2027. EU growth is forecast at 1.3% in 2026 and 1.4% in 2027, supported by easing inflation and ECB rate cuts, though manufacturing remains weak due to US tariffs and elevated energy costs.

The global economy grew 3.3% in 2025, matching the 2024 figure, with the IMF projecting similar growth of 3.3% in 2026 and 3.2% in 2027.

 

The European Parliament has adopted its position on the tariff aspects of the EU-US Turnberry trade deal. This includes a proposal for a “sunrise clause” that would make EU preferential tariffs on US goods effective only if the US lowers its tariffs to a maximum of 15% on EU-origin products with a steel content of below 50%, Kallanish notes.

For EU products with a steel content of above 50%, unless the US reduces its tariffs to a maximum of 15%, EU tariff preferences for US exports of steel and their derivative products would cease to apply six months after the entry into application of the regulation.

The deal, if agreed with EU member states, would eliminate most tariffs on US industrial goods and provide preferential market access for a wide range of US seafood and agricultural goods, in line with the commitments made in summer 2025 between the EU and the US.

MEPs strengthened the proposed suspension clause, which would allow the EU to suspend preferential tariffs under certain conditions, such as if the US were to impose additional tariffs exceeding the agreed 15% ceiling.

Members also agreed on an expiry date for the main regulation on 31 March 2028. This could only be extended via a new legislative proposal.

MEPs will now start negotiations with EU governments on the final shape of the legislation. The so-called “Trilogue” negotiations are set to begin on 13 April, European Parliament INTA Committee chair Bernd Lange said on Friday.

The progress of the trade deal will depend on how the US acts. “For me, it is clear the ball is now in the field of the United States,” he added. The first step of the US should be to reduce tariffs on the so-called steel “derivatives” back to 15%, he concluded.

 

The European Commission has initiated a safeguard investigation into imports of grain-orientated flat-rolled products of silicon-electrical steel (GOES), perceiving sufficient evidence to assess the necessity of new trade protections. 

The investigation, launched on 27 March, will also cover steel laminations and cores (SLC), whether or not stacked or wound, for transformers and inductors.

Imports of GOES are not under the scope of the EU’s existing steel safeguard, nor its July replacement. The Commission notice cites an increase of 109% and 82% for GOES and SLC imports, respectively, in the year to 30 June 2025, stating that the “increase in imports appears to be the result of unforeseen developments such as increased production capacity in third countries and the ensuing risk of further increased imports on the Union market.”

Excess global capacity for GOES is said to exceed EU consumption by 64%, leading the Commission to conclude that further injury to domestic industry is likely “even if only part [of the excess] is redirected to the Union market.” The Commission also highlights the imposition of trade barriers to GOES imports in other jurisdictions in compounding the threat to the EU market.

Interested parties have 21 days from today’s publication of the safeguard notice in the Official Journal to submit issued questionnaires, written views, and supporting evidence. Market participants or other relevant parties should notify the Commission, ideally within 15 days, to register their interest.

The investigation will cover CN codes 72251100 and 72261100 for GOES, and 85049013 for SLCs.

GOES steels from China, Japan, South Korea, Russia, and the United States are currently subject to anti-dumping duties composing of minimum import prices, and maximum ad-valorem rates.

European steelmaker Thyssenkrupp announced this week that it would extend shutdowns of its GOES production in Isbergues, France to September 2026 due to import pressures, stating 1,200 jobs across Germany and France were at risk from non-competitiveness in the EU market.

According to McCloskey’s sources, relevant steelmakers have been pushing hard for an inclusion of GOES and SLC-related products in the downstream extension proposal for the CBAM, potentially offering double-shielding from import pressures if both the safeguard investigation and CBAM extension result in new barriers to GOES or SLC accessibility.

“The Commission’s announcement shows that Brussels is not finished with its efforts to shield the EU steel market,” said Yuriy Rudyuk, Partner at trade-specialist law firm Van Bael & Bellis. “In fact, the decision reflects a broader policy direction: safeguards remain a relevant instrument, and we may well see more safeguard actions across additional product sectors in the near future.”

Rudyuk’s comments are particularly relevant as the EU labours to replace its current safeguard system – necessarily expiring in June under WTO maximum 8-year term rules – with a new permanent framework, pursued under Article 28 of the WTO’s General Agreement on Tariffs and Trade and requiring extensive negotiations with trading partners. Safeguards, on the other hand, offer a unilateral solution to ‘short-term’ import pressures – and as demonstrated by efforts on the wider steel framework, these temporary solutions may well become permanent once term limits are reached.

Author: Benjamin Steven

opisnet.com