Day: 24 April 2026

Local rebar and wire rod prices continued to climb across Europe in the week to Wednesday April 22, driven by cost inflation. At the same time, customers in most countries pushed back and limited purchases amid weak underlying demand and expectations of price declines in the near term.

Last week, mills in Italy announced price increases to €710-720 ($830-842) per tonne ex-works (EXW) in the north and up to €750 per tonne EXW in the south. While the market last week clearly signaled that these levels were not accepted by customers, the increases were gradually digested this week.

Market sources reported that in northern Italy, some bookings were concluded at €700-705 per tonne EXW, while deals in the south were heard at €720-725 per tonne EXW.

“It is true that mills are trying to push prices higher compared with last week, but the market still appears weak and participants are waiting to see how the situation develops over the coming days,” one buyer source said.

“At the moment, however, the general sentiment is cautious, as market participants are trying to understand whether the peak has already been reached or if the upward trend might continue in the coming weeks. In my view, customer inventories seem to be gradually decreasing, which could lead to a certain level of acceptance of the new price range going forward,” the buyer source added.

“Demand is not so good these days. Customers are concerned that €710 per tonne EXW represents a ceiling. Market views are divided: some expect prices to turn lower in May, while others believe that the uptrend could continue throughout the spring until the Persian Gulf war [the US-Iran conflict] ends and the situation stabilizes,” a trading source said.

Fastmarkets’ weekly price assessment for steel reinforcing bar (rebar), domestic, exw Italy, moved accordingly to €700-725 per tonne on April 22, up from €670-710 per tonne on April 15.

In Spain, mills raised asking prices to €740-750 per tonne delivered (base size 16 mm), with the new levels gradually being accepted. Sales, however, were also heard at €720-730 per tonne delivered.

As a result, Fastmarkets’ weekly price assessment for steel reinforcing bar (rebar), domestic, delivered Spain, widened to €720-750 per tonne on April 22 from €725-745 per tonne on April 15.

Mesh-quality wire rod prices in Southern Europe also rose significantly.

In Italy, deals were heard within the range of €700-715 per tonne delivered during the assessment week, while in Spain, prices were reported within a wider range of €700-730 per tonne delivered.

Fastmarkets’ weekly price assessment for steel wire rod (mesh quality) domestic, delivered Southern Europe, rose to €700-730 per tonne on April 22 from €670-710 per tonne on April 15.

Price dynamics in northern Europe broadly mirrored the upbeat trend seen in southern markets.

In Germany, rebar was available in the range of €700-720 per tonne delivered, with sales heard toward the lower end of the range.

One source said that cut-and-bend mills in the country were pushing for prices significantly below €700 per tonne delivered, but this was not confirmed by other market participants, who said that such levels would not be workable given current scrap and electricity costs.

Additionally, a number of market sources noted that construction activity in the country was recovering after a strong winter, lending some support to demand.

In France, customers were said to be accepting €700 per tonne delivered, a level that was considered unworkable last week, sources noted.

Fastmarkets’ weekly price assessment for steel reinforcing bar (rebar), domestic, delivered Northern Europe, was €700-710 per tonne on April 22, up from €665-680 per tonne on April 15.

Wire rod prices in Northern Europe moved to €700 per tonne delivered, a development reflected in the corresponding weekly price assessment. Fastmarkets’ weekly price assessment for steel wire rod (mesh quality), domestic, delivered Northern Europe, was €700 per tonne on April 22, up from €670-680 per tonne on April 15.

German steel sales rose 10.4% year over year and 9.3% month over month to 943,927 metric tons in March, with stocks that slightly went up 0.7% year over year but fell 1.3% month over month to 1,899,091 mt, data from the Federal Association of the German Steel Trade, or BDS, showed April 23.

Sales of steel longs products registered the steepest increase in March, helped by the seasonality of the construction sector and better demand. In March, sales of longs grew 19.2% month over month and 23.9% year over year to 310,853 mt, data showed.

Sales of flats products went up by 6.8% month over month and 2.7% year over year to 547,553 mt, according to the data.

Sales of the other steel products rose 4.9% month over month and 7.1% year over year to 85,521 mt, data showed.

For the first time since the beginning of the year, steel stocks of flat products fell 2.5% month over month in March but were still up 2% at 1,213,167 mt.

Stocks of longs steel products also went down for the first time in 2026 by 1.7% year over year in March, but rose 0.8% month over month.

Stocks of other products fell 0.5% year over year and rose 5.2% month over month to 37,508 mt in March.

According to Platts, part of S&P Global Energy, HRC Ruhr ex-works moved from Eur670/mt seen on March 2 to Eur710/mt recorded at the end of the month on March 31 and then continued to stay at that level until April 21, when prices registered a little correction.

Platts assessed Northern Europe HRC at Eur705/mt ex-works Ruhr on April 22, down Eur5/mt day over day and Southern Europe HRC at Eur695/mt ex-works Italy, up Eur5/mt during the same period.

Overall, European hot-rolled coil prices were largely stable in the last few weeks of April, as market participants noted that further direction on the EU’s new safeguard measures would be needed before making any sizeable trading decisions.

In Germany, some service centers with leftover stock were reported to be offering material at a lower basis than mills, which were holding offers firm, according to market sources.

Service center offers were heard at Eur705/mt ex-works Ruhr, while mill offers were heard between Eur720-750/mt ex-works Ruhr.

Workable levels for normal tonnages were heard at Eur700-715/mt ex-works Ruhr, while sources noted that Eur680-695/mt would be achievable for larger tonnages.

Author: Annalisa Villa

spglobal.com

Global crude steel production declined 4.2% year on year in March, driven by a sharp contraction in China and a decrease in Middle East, Russia and other Commonwealth of Independent States and Ukraine, while India, the US and other producers like Turkey reported higher output, according to data released April 23 by the World Steel Association.

The 69 countries reporting to the industry body produced 159.9 million metric tons of crude steel in March, down from 166.9 million mt in the same month last year. The decline underscores persistent weakness in China’s construction and manufacturing sectors, while geopolitical tensions appear to have severely disrupted steel production across the Middle East.

The steepest regional decline came from the Middle East, where production fell 33.5% to just 3.5 million mt in March due to the ongoing conflicts.

China, the world’s largest steel producer, accounted for more than half of global output in March, down 6.3% year on year to 87 million mt. The decrease shows how Chinese steelmakers are cutting production as they grapple with weak domestic demand and government pressure to reduce overcapacity.

Among the world’s top 10 steel-producing countries, India stood out with a 9.4% jump to 15.3 million mt in March, as the world’s second-largest steel producer is benefiting from its strong domestic demand.

Production in the US grew 5.2% to reach 7.2 million mt, maintaining its position as the third-largest producer. The increase reflects steady demand from the automotive sector and infrastructure projects. In contrast, Japan, the world’s fourth-largest producer, saw output fall 4.1% to 6.9 million mt, reflecting weak domestic demand and intensifying competition from lower-cost Asian rivals.

Russia’s estimated production dropped 11.4% to 5.4 million mt, matching South Korea’s output level. The sharp Russian decline likely stems from Western sanctions as well as the economic impact of the ongoing conflict in Ukraine. South Korea, by contrast, posted modest growth of 1.5% to 5.4 million mt, supported by export demand.

Turkey achieved a strong growth of 6.4% to reach 3.3 million mt, tied with Germany for seventh place among global producers. Turkey’s performance reflects robust construction activity and its strategic position as a steel supplier to Europe and the Middle East.

Germany’s output increased by 7.5% to 3.3 million mt, suggesting some recovery in European industrial activity despite the broader EU-27 decline. The German rebound may indicate improving competitiveness as energy costs stabilize and manufacturing demand picks up.

Brazil’s production slipped 2.5% to 2.8 million mt, reflecting softer domestic demand. Vietnam, estimated to have produced 2.2 million mt, bucked regional trends with a 5.7% growth, highlighting the country’s expanding industrial base and rising steel consumption.

During the first quarter, the 69 reporting countries produced 459.2 million mt, down 2.3% from the same year-ago period. China’s output during the quarter reached 247.6 million mt, down 4.6%, while India produced 44.7 million mt, up 10.8%.

The year-to-date figures suggest the global steel industry continues to navigate a challenging environment marked by uneven regional demand, geopolitical disruptions and ongoing structural adjustments in China’s steel sector.

Author: Annalisa Villa

spglobal.com

Despite rising volumes of lower carbon metal over the past few years, premiums for lower carbon emission-intensive material remain constrained by uneven adoption and continue to be shaped by conventional market forces, sources told Fastmarkets. Payment of a premium remains selective and has tended to occur mainly where regulation, reputational considerations or customer mandates make it difficult to avoid.

Low carbon pricing remains closely tied to broader supply‑demand dynamics and generally moves in line with outages, inventory shifts and macroeconomic cycles rather than independently of them. Decarbonization value, for now, continues to sit within traditional market logic. When demand for metal is subdued, buyers have shown limited appetite for paying more for material they require in smaller volumes, even where lower emissions offer supply‑chain benefits.

At the same time, global momentum to decarbonize metals supply chains continues to build, albeit at a slower and quieter pace than seen earlier in the development of these markets, according to sources.

Regulation is tightening, with measures such as the European Industrial Accelerator Act and the introduction of the Carbon Border Adjustment Mechanism from 2026. Producers continue to invest in lower‑emission production routes, while procurement teams are increasingly required to engage with emissions data associated with the materials they purchase.

Lower carbon emission pricing is most established in steel and aluminium markets. Fastmarkets launched its first low carbon differential in 2021, starting with aluminium, followed by a reduced carbon steel differential in 2023 and a low carbon nickel differential in 2024.

The term “differential” is central to how these markets function. Differentials to conventional, or “grey”, material have ranged from $100 per tonne to $0 per tonne, according to Fastmarkets data. Lower‑carbon metal has therefore not consistently attracted a premium, with price spreads remaining wide and, for most metals, an industry‑wide definition of what constitutes “green” material still lacking.

The “pioneering days”, as some industry sources describe the period four to three years ago when lower‑emission product ranges began appearing across producer portfolios, have since been shaped by rising geopolitical tensions and broader economic weakness.

Commodity price volatility over recent years has weighed on the development of the lower carbon emission marketplace, particularly when it comes to willingness to pay among buyers without clear regulatory or contractual requirements. Despite these headwinds, Fastmarkets data suggests these markets have continued to expand quietly – not in value terms, but in terms of volume.

Since the introduction of low carbon differentials in aluminium and steel in 2021 and 2023, Fastmarkets has observed these differentials extend into additional product segments across value chains and into a wider range of regions.

Lower carbon emission premiums therefore remain present in the market, but they have largely been paid where buyers face regulatory, customer or contractual pressure to do so, rather than on a discretionary basis.

A survey by McKinsey found that by 2030 buyers expect demand for green materials – including ferrous, base and battery metals, as well as glass and plastics – to increase by between 1.7 and 4.5 times current levels, depending on the material.

Looking at what this growth in demand could mean for pricing, Fastmarkets Research forecasts volumes of low carbon material to scale up significantly by 2035. Green steel production in Europe is forecast to reach around 15.9 million tonnes by 2035, rising from less than 1% of flat steel output in 2025 to more than 20% by 2035.

As lower carbon material scales up, it is expected to move from being a niche offering towards becoming more commonplace within supply chains, with the price difference between “green” and “grey” material gradually narrowing over the longer term, according to Fastmarkets Research.

Upcharges for low carbon metals may therefore prove more transitional than initially anticipated. Over time, the role of differentials may be less about delivering a distinct return on investment and more about reflecting the gradual normalization of a lower‑emission metals supply chain – unfolding steadily rather than suddenly.

On account of both geology and choice, Europe will never have low-cost energy supply; rather than price, the issue at stake is to ensure security of energy supply. The EU’s energy-intensive industries (EII) should nevertheless receive policy support that ensures they compete on an equal basis with imports.

This was the conclusion of a panel on industry during crises as part of the European Economic Congress in Katowice this week attended by Kallanish.

“A good energy price is not a high or low price, it’s a price that our competitors have. Without that, we have to say it honestly, investments involving a large use of energy, whether it’s electricity or gas, will be difficult,” said Weglokoks chief executive Tomasz Slezak.

“Fundamentally, we are in a losing position. All of the European Commission’s efforts, they amount to guesswork, because there are no remedies for this. The market works on the basis of marginal cost … set by gas sources or coal after accounting for CO2 costs. This means that we will always have expensive energy, whether we invest a lot into renewables or not, because the stabilisation of the system will always need marginal sources,” he added.

The lack of prospects for low-cost energy means the EU needs to consider establishing new industries to drive economic growth that do not consume energy so intensively, warned Adam Sikorski, chief executive of Polish fuel importer Unimot.

“It is fundamentally not possible” for Europe to have energy prices as low as the US, which is a net exporter of gas, he noted. The import of LNG into Europe requires the gas to be liquefied, transported, then regasified. This all involves costs. On account of geological conditions and the choice made to not mine hydrocarbons, Europe will not be competitive, he added.

“A [European] data centre will, as a result of the energy it uses, never be competitive against the US,” he said. Nuclear energy has to be built out, “but we’re not saying this in the context that energy prices will drastically come down because … we know how much nuclear energy will cost per MWh … We’re talking here about energy being available and not being cheap.”

In the case of EII, “we can either subsidise it and decide as taxpayers that we need this industry strategically … or we look for advantages in other areas,” he suggested. However, in competition with China, it will not be an easy task for Europe to find unique new economic drivers.

ArcelorMittal Poland chief executive Wojciech Koszuta countered: “I can’t agree that we have to subsidise energy-intensive industries. We will manage; we just want to have an equal chance with importers.” CBAM is the first step towards equalising conditions with importers who are not subject to ETS costs, he added.

Ignacy Niemczycki, secretary of state at Poland’s foreign affairs ministry, said renewables will in fact be able to provide low-cost energy with the use of instruments such as contracts for difference. However, “the model does not work in Europe the way it should at the moment,” he conceded.

Asked what needs to happen in the coming year to support industry, Slezak concluded: “Without a doubt, the entire ETS system needs reforming … We’re all concerned about the climate, but the system is wrongly configured. It puts huge costs on the economy and that has to change. Europe should adapt the Chinese model. That’s what you call real sustainable development. Not punishing but rewarding [industry]. Penalising amounts to nothing.”

Without energy market reform, meanwhile, “especially for those traditional industries, Europe really will not produce any value,” he said.

Author: Adam Smith

kallanish.com

European for steel hot-rolled coil (HRC) were largely unchanged on Thursday April 23 amid a standstill in trading. Buyers were postponing purchases, awaiting more clarity on the new EU trade regime and especially the country-specific import-quota allowances, trade sources told Fastmarkets.

Steelmakers in the region had very little availability of second-quarter delivery coil, but higher prices for July lead times, indicated earlier in April, have failed to be seen in firm offers so far.

“Mills are keeping quiet. Apparently, they are waiting for a safeguards update as well. There are rumors and indications, but practically no firm offers for July,” a buyer in Germany said.

“We saw some low-priced deals for HRC by some sellers in mid April. Mills were filling gaps in order books, but now it seems to be over,” a second buyer said.

Two German mills were reported as not active in the spot market because they had a aignificant backlog of orders.

Fastmarkets reported earlier this week that one of them offered material at €730 ($853) per tonne base delivered (€715 per tonne ex-works) to some customers in Germany for July delivery.

Italy-origin coil with June lead times was offered to Germany at €730-750 per tonne delivered.

Asupplier in the Benelux area, who had to shut down its direct sheet plant (DSP) and casting roller plant due to environmental issues earlier in April, was expected to resume operations next week, several sources said.

A leading European steelmaker was yet to give firm offers for July-delivery HRC. Market sources said that the supplier managed to close gaps in its order books for second-quarter delivery coil recently.

Estimates of workable prices for HRC in Northern Europe were reported by buyers and sellers at €700-720 per tonne on Thursday.

Fastmarkets’ daily steel hot-rolled coil index, domestic, exw Northern Europe, was assessed at €708.75 per tonne on April 23, up by €0.75 per tonne from €708.00 per tonne on April 22.

The index was down by €0.73 per tonne week on week and by €8.75 per tonne month on month.

At the same time, market sources agreed that, despite the current standstill, a reversal of the price trend was unlikely.

“The new trade regime and 50% imports cut are not temporary or short term – starting in July, they will have real, long-lasting effects on the market. There is no room for sharp [HRC] price jumps, yes, but now there is room for a decline,” a distributor in the Benelux area said.

Meanwhile, in Southern Europe, Fastmarkets’ daily steel hot-rolled coil index, domestic, exw Italy, was calculated at €700.00 per tonne ex-works on April 23, down from €701.24 per tonne ex-works on April 22.

The index was, however, up by €1.25 per tonne week on week and up by €4.37 per tonne month on month.

Market ources in Italy estimated achievable prices for HRC to be around €700 per tonne ex-works, while local sellers maintained offers no lower than €700 per tonne ex-works.

In the secondary market, sources reported transactions for 4mm S235 grade hot-rolled (HR) sheet consolidating at €800 per tonne CPT in Italy.

“Sometimes it’s €10-20 per tonne lower, sometimes a bit higher – but on average €800 [per tonne CPT] is a consensus,” a steel-service center in Italy said.

Trading in the nation was also very quiet, with both buyers and sellers waiting for safeguard updates.

“Knowing the country-specific quota distribution is crucial for understanding the future import structure,” a buyer source said. “Apart from quotas, real demand is the key concern – there is no improvement in that.”

Meanwhile, because of the lack of clarity on country-specific quotas and on the Carbon Border Adjustment Mechanism (CBAM) costs for imports, buyers were showing little interest in overseas material, at least for HRC.

From Turkey, offers were reported at €625-635 per tonne CFR, including anti-dumping duty, but excluding CBAM costs.

Offers from India were heard at €585 per tonne CFR. Market sources said that Indian mills were able to offer shipment in mid-May and guaranteed arrival before July.