Day: 29 May 2026

French President Emmanuel Macron has noted the importance of the Jonquières-Fos power line, critical infrastructure essential for the industrial projects of ArcelorMittal France, Marcegaglia Fos-sur-Mer, green steel developer GravitHy, Kallanish notes.

The 400kV high-voltage power line is being built and operated by Réseau de Transport d’Electricité RTE to supply the Fos-sur-Mer industrial zone near Marseille.

The existing grid cannot meet the growing electricity needs of the area, which hosts major industrial projects in green steel, hydrogen and other sectors. The line, capable of carrying large amounts of electricity long distance, is considered essential for the decarbonisation and reindustrialisation of the southern Mediterranean corridor.

“I welcome RTE’s commitment to concretely accelerating connection timelines. These are investments for the major industrial and port zones: Dunkirk, Le Havre, Fos. France’s major ports are competitive locations for new industries and these are the accelerations they need,” Macron said at a meeting of the electrification team France held at the Élysée Palace earlier this week.

“I also welcome Enedis’ efforts, which is committed to connecting these electrification projects 30% faster than before. We will need to build new power lines as part of this connection effort. This is the case in particular for the line that must supply the Fos industrial zone. This line is necessary,” he added.

He vowed to have the line enhanced and operational by 2029.

Its completion will significantly reinforce the electrical supply capacity of the entire Fos-Étang de Berre area. The line’s enhancement is part of the electrification programme, Fos Berre Provence 2030, a French infrastructure initiative led by RTE to massively reinforce the electricity supply to the Fos-sur-Mer and Étang de Berre industrial zone.

According to RTE’s project presentation, seen by Kallanish, the south-east’s very high voltage grid dates from the 1970s and is no longer fit for purpose given rising electricity demand. With 60% of the region’s power coming from the Rhône valley, reinforcing the supply from the north has become essential. The electrification programme includes key works such as the reinforcement of existing 400,000-volt lines; the upgrading of a 225,000-volt line to 400,000 volts; and the construction of a new 400,000-volt overhead line between Fos-sur-Mer and Jonquières-Saint-Vincent.

Greensill Bank and Trasteel are said to have reached an agreement for the sale of the Magona re-rolling facility in Piombino, Tuscany, previously owned by Liberty Steel.

“A significant new step forward has been taken towards the reopening of Magona. We now expect the process for the transfer of ownership to Trasteel to be completed swiftly so that the industrial relaunch plan can be implemented,” says Adolfo Urso, Minister of Enterprises and Made in Italy (MIMT) in a note obtained by Kallanish.

A further meeting will be convened within 15 days for the final approval of the plant’s sale process.

However, a source close to the matter believes the agreement is not yet in writing and notes that unions are holding back from celebrating just yet.

Trasteel has formally submitted a binding offer for the lease of the Piombino plant’s business unit and subsequent acquisition of the facility. The company is said to have initially offered €45 million ($52.3m) as a lease payment to be deducted from the purchase price, but this has encountered resistance from creditors. The revised agreement is understood to focus on Trasteel paying €36m over eight months from the date of signing.

The collapse of Greensill in March 2021 left Liberty on the brink of insolvency, and the firm has since battled to find new sources of financing to continue operations.

Trasteel was not available for comment before the press deadline.

Aquí pueden ver la edición de MAYO de nuestra revista INFOACERO

Destacamos a continuación algunos de sus contenidos:

• Opinión – D. Jose Fco. Sánchez- Junta Directiva  UAHE
• Índice UAHE:  Evolución precios de aprovisionamiento Septiembre 24 – Marzo 26
• Siderurgia:  Perspectiva a corto plazo de World Steel Association- Abril 26
• Sector Metal:  Actividad productiva y comercio exterior Abril  – Confemetal
• Colaboración RRHH –D. Agustín Barroso– Director  RRHH HIEMESA

The European steel industry is pressing EU member states to mandate union-origin requirements for low-carbon steel in public procurement, warning that without such safeguards, the bloc’s Industrial Accelerator Act risks incentivizing imports rather than supporting domestic decarbonization investments.

Eurofer, the European Steel Association, wrote a letter to the Competitiveness Council of the EU, ahead of the May 28 Competitiveness Council meeting, asking that IAA should include a clear “union origin” definition requiring low-carbon steel to be “melted and poured” in the EU27 to qualify for public procurement and support schemes.

“This is not the first time that Eurofer has asked for it. The association has been very vocal on this issue, as it says that without robust origin requirements, minimum procurement shares could be met through imports, undermining Europe’s industrial base as steelmakers make unprecedented decarbonization investments,” the association said in its letter seen by Platts, part of S&P Global Energy.

The industry group called for a harmonized “Made in EU” definition across all relevant provisions, including the low-carbon steel credit under CO2 standards, warning that a fragmented framework would create circumvention risks and weaker investment signals.

 

Stronger demand signal

Eurofer said the current proposal falls short of creating sufficient demand certainty to support steel decarbonization investments. The association urged member states to strengthen minimum requirements in public procurement and extend them to technologies covered under the Net-Zero Industry Act, including wind technologies.

The association said a stronger IAA represents a critical opportunity to decarbonize Europe’s steel industry while strengthening competitiveness, resilience and strategic autonomy.

 

Faster trade defense

European manufacturers are separately pressing the European Commission to accelerate trade defense investigations and beef up staffing at DG Trade, warning that lengthy delays are exposing producers to unfair competition.

A joint statement on May 26 by ferrous and non-ferrous industry associations, including European Metals, the European Association of Automotive Suppliers, and European Aluminium, called for improved EU trade defense measures.

The industry groups said investigation waiting times now stretch several months at the case initiation stage alone, risking irreversible damage, including plant shutdowns. The manufacturers called for the commission to use existing trade defense instruments more flexibly and preventively, addressing unfair practices before major injuries occur. They also urged Brussels to adopt a value-chain approach to investigations and to consider a new instrument to address state-driven distortions from non-market economies.

 

Author: Annalisa Villa

spglobal.com

The EU’s Carbon Border Adjustment Mechanism has fundamentally altered how European stainless steel distributors operate, transforming what was once a sustainability reporting exercise into a high-stakes commercial challenge that now shapes pricing, supplier selection and financial risk management on a daily basis.

Michael Lund, chief executive of Danish stainless steel distributor Damstahl Group, said CBAM has created an “unusual commercial situation” where importers price products today based on a future carbon liability whose exact cost remains unknown — sometimes 18 months in advance of settlement.

“CBAM is no longer just a sustainability or compliance topic. It has become a core commercial issue,” Lund said at the Global CBAM Summit in Prague on May 28, organized by the International Association for Carbon Border Adjustment Mechanisms. “From January 1 this year, CBAM became a new reality. Today, it affects our pricing model, our competitiveness, our customer dialogue and our risk management.”

 

Price volatility, timing mismatch

The mechanism, which entered its definitive phase in January, requires importers to purchase certificates covering embedded emissions in six energy-intensive industries: iron and steel, aluminum, cement, electricity, fertilizers and hydrogen. But a critical timing mismatch has emerged: companies import goods today while CBAM certificates can only be purchased from February 2027 for current imports.

That delay exposes importers to significant price volatility. EU carbon allowances have swung dramatically in recent months, creating what Lund described as a “range” rather than a fixed cost. The uncertainty forces distributors to build substantial financial buffers and evaluate hedging strategies against EUA price movements — treating carbon exposure much like currency or commodity risk.

Lund said the competitive landscape in stainless steel distribution is fundamentally shifting. Historical advantages built on low-cost sourcing are giving way to capabilities in risk management, data quality assessment, supplier transparency and operational maturity.

“The biggest challenge is the uncertainty — uncertainty from data gaps, potential verification delays, default values, timing mismatches and EUA price volatility,” Lund said. “But the competitive advantage now comes from understanding risk management, data quality and supplier transparency, at least in the long term.”

The EU’s CBAM works alongside the EU Emissions Trading System to prevent carbon leakage by imposing carbon pricing on imports as Brussels phases out free allowances for domestic producers.

EU carbon prices have experienced extreme volatility in 2026, peaking above Eur90/mtCO2e before falling to around Eur63/mtCO2e in mid-March amid political pressure on the bloc’s carbon market. EU Allowances have recovered steadily since then as the European Commission promised to present a comprehensive review proposal of the EU ETS in July.

Platts, part of S&P Global Energy, assessed EU Allowances for December 2026 at Eur78.74/mtCO2e May 27, the highest since Feb. 11.

 

Business strategy

For Damstahl, which sells a series of flat products, bars and tubes in Nordic and Central European markets, the implications run deep. Sourcing decisions once driven primarily by price, quality and lead times now must factor in emission intensity, data quality, verification reliability and supplier transparency.

“The companies with the best operational control and risk management capabilities are likely to outperform companies that only optimize for the lowest price,” Lund said. “This creates a new competitive dynamic.”

The challenge is compounded by incomplete or unverified emissions data from suppliers, particularly those outside Europe. Default emission values — applied when actual data is unavailable — can materially overstate a product’s carbon footprint, inflating the CBAM liability. Yet importers bear the financial responsibility regardless of data quality.

Lund said Damstahl has responded with a three-pronged strategy: incorporating carbon intensity and supplier maturity into sourcing decisions; strengthening contractual terms around emission data accuracy; and continuously calculating exposure to support pricing decisions and build financial reserves.

The lack of a common baseline has created what Lund called an “inefficient” market where companies apply vastly different assumptions in their pricing models. Some remain focused primarily on compliance, while others have integrated CBAM into core commercial strategy. The maturity gap is producing distorted price dynamics as the industry learns to operate under the new framework.

“The market lacks a clear and consistent price signal,” Lund said. “This uncertainty is currently disrupting the market because companies are still learning how to operate while applying different assumptions, methodologies and risk models.”

 

Author: Eklavya Gupte 

spglobal.com

There will be growth in carbon markets throughout the world in the coming years, with jurisdictions wanting to keep tax revenue at home to spend on decarbonising industry rather than paying it to the EU under CBAM. Customers of EU importers are meanwhile seeking the convenience of being quoted a final CBAM-cost-paid price with the risk borne by the importer, which presents an opportunity for authorised declarants with sufficient resources.

Speakers at the inaugural Global CBAM Summit, organised by IACBAM in Prague on Thursday, dived deep into the myriad of factors surrounding the world’s first carbon import tax.

Among them was Michael Lund, managing director of Danish stainless steel distributor Damstahl, who pointed out companies, when importing CBAM goods, are building accruals on their balance sheet for future cost. These will be paid out in September 2027 when CBAM costs accrued in 2026 will need to be settled.

“Basically, we leverage that risk for the customers and … we have gained new customers in this … segment, where they either do not want to take the risk but do not understand the full game of CBAM,” Lund said at the event attended by Kallanish. However, having sufficient resources as a company is crucial. “It is also about having the power in the organisation to carry this through. It is data intensive, and it kind of touches all different disciplines within your company,” he added.

Many customers want the convenience of a simple CBAM-cost-included price. “Some of our customers [want], I guess I could say it’s [CBAM cost] not a separate line on an invoice, it is included, it’s calculated into the sales price of the customer, basically … that the price that you give should contain the CBAM cost. But that’s exactly the complexity, because right now we have to calculate X, Y amount, kind of guess the right cost that we pay in September 2027. There are not many customers who are willing to order now and to get the final bill in 2027,” he added.

Jan-Joost den Brinker, Chief Technology Officer – Dubrink, nevertheless said some customers prefer to split out the carbon cost onto a separate line on the invoice, “because it makes the conversation easier”.

Dan Maleski, CBAM Lead – Redshaw Advisors, pointed out that many jurisdictions do not have the incentive to introduce carbon pricing as it can initially stunt economic growth, especially in less developed countries. The price of carbon in existing markets is only a fraction compared to EU ETS.

“What other ways can we incentivise India or China to improve the cost of carbon? You go to the UN and ask them very politely, or you can get Baosteel to lobby the Chinese government to incorporate an effective cost of carbon, so Baosteel could be more competitive in Europe, which is what Europe’s doing,” he observed. Non-EU countries can also use their carbon tax revenue to reinvest into decarbonisation rather than paying it to Brussels, he added.

Maleski also said it is unlikely the European Commission will materially weaken ETS during its July review because many firms have already invested significant funds into decarbonising. He also mentioned the example of a US blue hydrogen ammonia project, whose entire business case rests on supplying the EU, threatening to scrap the project if changes were made to CBAM. “There’s a lot of political capital at stake for making sure that this cost [of carbon] doesn’t go away, not because of climate change reason, because of a business reason,” he noted.

One Turkish can maker in the audience expressed concern that her company’s raw material supplier does not have an MRP (Material Requirements Planning) system, which will impact their ability to declare emissions for imports into the EU. “The safest thing you can do right now is rely on default values and try to get them [your supplier] ready as soon as possible. Sit with them, explain them why an MRP is very important,” concluded den Brinker.

In April this year, new passenger car registrations in the EU increased by 5.1 percent year on year to 972,314 units, according to the European association of car manufacturers ACEA.

In the given month, the French market (-0.3%) saw the only decline, while Italy (+11.6%), Spain (+8.4%) and Germany (+2.7%) reported positive results.

In the first four months of this year, new car registrations in the EU rose by 4.2 percent year on year to 3.79 million units. France (-1.6%) showed a negative performance. On the other hand, Italy (+9.8%), Spain (+7.8%) and Germany (+4.5%) posted an increase.

European domestic prices for rebar remained steady in the week to Wednesday May 27, with weak demand stifling market acceptance of attempts by Italian mills to push for higher prices, sources told Fastmarkets.

Market participants said that demand remained subdued across Europe, due to the weak construction sector, high prices, adverse weather conditions and slow project development.

“The residential market in Italy, except Milan, is weak,” a buyer source said. “In addition, orders from public infrastructure sites are slow due to financial and weather issues.”

Tradable prices in Italy remained unchanged week on week, despite the upward pressure from producers, sources said.

“Producers have responded by cutting production and/or exporting,” one seller source told Fastmarkets.

In the north, tradable levels were reported at around €710-730 ($826-849) per tonne ex-works, while in the south, prices remained at about €750-770 per tonne ex-works, but no meaningful volumes were traded at the upper end of the range.

Transactions were concluded within those ranges, but buyers were taking a wait-and-see-approach.

Fastmarkets’ weekly price assessment for steel reinforcing bar (rebar), domestic, ex-works Italy, was €710-750 per tonne on May 27, unchanged week on week.

In Spain, the tradable level was reflected in Fastmarkets’ price assessment for steel reinforcing bar (rebar), domestic, delivered Spain, which remained at €750 per tonne delivered (16 mm base).

And domestic rebar prices in Germany were also stable, with the tradable level at around €710-730 per tonne delivered, with limited variations across the market, sources said.

Fastmarkets’ weekly price assessment for steel reinforcing bar (rebar), domestic, delivered Northern Europe, was €710-730 per tonne in the week to May 27, unchanged from the previous week.

Steel wire rod followed the overall trend in long steel prices and was unchanged from May 20, amid subdued demand.

Fastmarkets’ weekly price assessment for steel wire rod (mesh quality), domestic, Northern Europe, was unchanged at €705-720 per tonne delivered on May 27.

In Southern Europe, wire rod prices were reported at €690-720 per tonne delivered, with offers and transactions heard at similar levels.

Fastmarkets’ weekly price assessment for steel wire rod (mesh quality), domestic, delivered Southern Europe, was unchanged at €690-720 per tonne.

Local steel heavy plate prices in Italy declined week on week amid increasing competition among suppliers and weak demand, sources told Fastmarkets on Thursday May 28. Meanwhile, German plate prices remained largely stable, with no fresh trading activity heard in the market during the week.

Southern Europe
Latest deal levels for steel plate in Italy were heard at €730-750 ($851-874) per tonne ex-works, down from €740-775 per tonne ex-works a week earlier, with sources saying that “competition is increasing for July-August delivery.”

Offers were reported in the range of €740-760 per tonne ex-works, with one producer saying that starting offers for the latest deals were at €750-760 per tonne ex-works, but were “less and less achievable even for smaller tonnages in pure commodity specs.”

Demand in the market had been weak throughout May, with sources linking this to fewer working days, resulting in lower output.

“For the time being, there are still sufficient quantities in local ‘port-stocks’ at somewhat reasonable prices available,” a trader said on May 24.

A second trader indicated S275-grade plate at €740-750 per tonne ex-works for end-June to early-July production.

Meanwhile in Italy, S355-grade material was offered at €770-800 per tonne ex-works, depending on order volumes, the trader said. A re-roller currently facing production issues was reported to be offering €790-800 per tonne ex-works for the same grade, but S355 is not included in Fastmarkets’ methodology.

Earlier in May, a major steel plate re-roller in northern Italy was reported to have paused production at one of its rolling mills, with plans to restart in early June.

A source at the producer said on May 27 that the rolling mill was undergoing maintenance and should restart in mid-June but added that overall plate production has not stopped.

Fastmarkets contacted the re-roller for an official statement but had not received a response by the time of publication.

Fastmarkets’ weekly price assessment for steel domestic plate 8-40mm, exw Southern Europe, was €730-755 per tonne on Thursday, widening downward from €740-775 a week earlier.

Offers for plate imports into Italy were heard at €740-750 per tonne DDP, including CBAM costs, but were described as not “very attractive” in the market.

However, one producer source said imported S275-grade plate from Indonesia was booked at €780 per tonne DDP Spain, not below this level, although one trader doubted this information.

“I strongly doubt that any trader will take the risk of the high default values,” the trader said.

These prices were not included in Fastmarkets’ assessment since they are based on DDP, rather than CFR levels.

Plate offers from India into Europe were heard at €690-700 per tonne CFR for May shipment, but sources were unsure about the delivery destination and noted limited recent activity in the market.

Fastmarkets’ weekly price assessment for steel plate (8-40mm), import, cfr main port Southern Europe, was €700-750 per tonne on Thursday, unchanged from April 16.

Germany
Offers for domestic plate in Germany were heard in the range of €790-850 per tonne ex-works during the week.

Some market sources reported lower levels at €790 per tonne ex-works, but Fastmarkets considered this information to have low confidence compared with other data and prevailing market conditions.

“The German market is completely dead, so I cannot confirm any orders being booked,” one trader source said on Thursday, but noted that German mills were “not booking below €800 per tonne ex-works… these days.”

Other offers were heard at €830-850 per tonne ex-works, while indications reached €840-880 per tonne ex-works, although these were linked to a supplier that is not typically active in the spot market.

The trader added that no new offers have been heard from other suppliers, owing to bank holidays and fewer working days in May.

“Therefore, I think we have to wait to see a bigger restocking, which so far does not take place, to judge the real price level,” they added.

Offers for Italian-origin plate in the region remained higher at €850-880 per tonne delivered, a second trader source said, reflecting more favorable price conditions for local German mills.

Fastmarkets’ weekly price assessment for steel domestic plate 8-40mm, exw Northern Europe, was €800-850 per tonne on Thursday, unchanged week on week.

The plate import offer from India at €690-700 per tonne CFR was also considered for Northern Europe, although the exact delivery destination remained unclear.

“Due to shipment problems arising in the Middle East and upcoming summer holidays in the EU, presently, [there is] not much interest in [plate] imports into Northern Europe,” a trader source said on May 24.

Fastmarkets’ weekly price assessment for steel plate (8-40mm), import, cfr main port Northern Europe, was €700-750 per tonne on Thursday, unchanged from April 16.

European domestic prices for steel hot-rolled coil were little changed on Thursday May 28, and with the recent round of restocking now concluded and no sign of a meaningful increase in consumption in the near term, industry sources saw little room for a rebound in domestic prices over the summer.

In Germany, July-delivery HRC was heard traded around €680-685 ($797-803) per tonne ex-works.

Official offers of July-delivery coil were reported in the wider range of €710-730 per tonne delivered (€695-715 per tonne ex-works) from integrated suppliers in Germany and the Benelux area. An offer from a re-roller was heard lower, around €660-670 per tonne ex-works.

Trading in the region was really slow, with most sources on the buy side reporting sufficient stocks and no urgent need for material.

“We have enough [HRC] in stock until September. Some of our peers have enough to last until October, considering the levels of real demand,” a steel-service centre in Germany said.

“The level of stock [of HRC] is high and it is going down very slowly, so there is no need to restock,” a second steel service center in Europe said.

Overall, industry sources saw no real opportunity for any immediate price rise during summer.

Some integrated suppliers indicated higher offers for late-third-quarter deliveries as well, up to €760-800 per tonne delivered, although those were more indications than firm offers. But buyers have deemed those totally unworkable so far.

“It’s not just ArcelorMittal – some other mills have indicated similar [higher offers] for late-third-quarter deliveries, counting on support from the new [EU] safeguards” a buyer in Northern Europe said.

“But the effect from new trade measures [in the regime coming into force on July 1] will not be immediate either – there is a significant volume of import tonnage in the pipeline arriving in June. But by September and October, tighter import availability will start to bite,” the buyer added.

Fastmarkets’ daily steel hot-rolled coil index, domestic, exw Northern Europe, was calculated at €680.73 per tonne on May 28, up by €0.73 per tonne from €680.00 per tonne on May 27.

The index was up by €0.31 per tonne week on week but down by €24.90 per tonne month on month.

Meanwhile, in the secondary market, sales of 4mm S235-grade HR sheet were heard around €750 per tonne CPT in Germany, with one supplier from central Europe selling aggressively at €740 per tonne CPT, while sources also reported sales of import material from stock at €720-730 per tonne CPT.

In Southern Europe, Fastmarkets’ daily steel hot-rolled coil index, domestic, exw Italy, was calculated at €670.42 per tonne on May 28, down by €5.83 per tonne from €676.25 per tonne on May 18.

The index was also down by €7.08 per tonne week on week and down by €29.58 per tonne month on month.

Weak demand and comfortable inventory levels at buyers continued to damp trading activity in the Italian HRC market, with offers heard at €700 per tonne delivered (€685 per tonne ex-works).

Industry sources noted, however, that lower prices could be achieved on larger tonnages, with achievable price estimates coming in at €660-680 per tonne ex-works.

As for imports, buying interest in overseas material was limited by regulations – both the upcoming new trade regime and the EU’s Carbon Border Adjustment Mechanism (CBAM).

New measures to shield the EU steel market cleared the European Parliament on May 19, 2026, with formal European Council approval still pending before they enter into force on July 1.

The reform replaces existing safeguards with a tariff-rate quota system that sharply tightens import conditions – slashing allowable volumes by around 47% from the 18.3 million tonne annual benchmark set in 2024 and doubling out-of-quota duties to 50%.

Precise quota allocations by country were expected to follow in June, according to sources close to the process.

Recently, European buyers have been prioritizing Turkish or Algerian coil bookings due to shorter lead times and lower potential CBAM costs. No fresh offers have been reported from either origin so far this week due to the Eid al-Adha celebrations.

Two sources reported a large HRC sale from Indonesia to Spain in May around €590-600 per tonne CFR, exclusive of CBAM costs. But it was not confirmed at the time of publication.

Other industry stakeholders, however, reported new offers from Indonesia no higher than $650-670 per tonne CFR to Italy.

“Indonesia is a huge risk,” an Italian buyer said, “because of the high emissions default values they have under CBAM, so I’m surprised anyone would risk buying it.”