Day: 3 July 2026

Hydnum Steel (HS) has officially secured €60 million ($68.3m) in funding for the building of the first “green” steel mill on the Iberian Peninsula, Kallanish learns from the prospective Spanish steelmaker.

The financing is part of Spain’s strategic PERTE programme, aimed at accelerating the industrial sector’s green transition, under the European Union’s Recovery, Transformation and Resilience Plan – Next Generation EU.

“The Spanish Ministry of Industry and Tourism has officially reaffirmed its support for Hydnum Steel and confirms that our project is the immediate solution Europe needs to lead the reindustrialisation of its steel industry,” the company states. “This final resolution strengthens the backing we first received in the initial call of the PERTE and enables us to move forward with our timeline to begin construction early next year.”

The green steel plant, located in Puertollano, in the Castilla-La Mancha region, is designed to use fossil-free energy throughout the manufacturing process and will gradually incorporate green hydrogen to substantially reduce CO2 emissions. HS aims to produce 1.5 million tonnes/year of flat steel, supplying key sectors such as automotive, construction and renewable energy.

The project has strong institutional support and international recognition. It has been declared a priority project by the Castilla-La Mancha regional government and is currently pursuing “project of singular interest” status, a legal designation that will expedite its development. Moreover, the World Economic Forum recently identified it as one of the five most important industrial decarbonisation initiatives globally.

The project is a partnership consisting of the Helvella investment company, Siemens, ABEI Energy and Russula Corp.

Author: Todor Kirkov

kallanish.com

Pueden ver la edición de junio de nuestra revista INFOACERO aquí

Destacamos a continuación algunos de sus contenidos:

• Opinión – D. Roberto González- Presidente UAHE
• Índice UAHE:  Evolución precios de aprovisionamiento septiembre 24 – abril 26
• Construcción:  Resumen informe Euroconstruct junio 2026
• Información Asociativa:  Asamblea General y Conferencias, Premio UAHE – Madrid, 25 junio
• Próximos Eventos: Decarbonized & Sustainable Industry (3-5 noviembre, Bilbao)// Advanced Manufacturing (4,5 noviembre, Madrid)

Based on Kallanish’s preliminary calculation, Türkiye has already fully exhausted its third-quarter EU tariff-rate quotas (TRQs) for hot-rolled sheets and strips, and for category 4.A metallic coated sheets.

Hot-rolled sheets and strips (category 1.A) are already oversubscribed, with 229,564 tonnes awaiting allocation against a TRQ of 160,574t, resulting in an oversubscription of 68,990t, or 43%. Category 4.A metallic coated sheets have also exceeded their allocation, albeit by 6,414t, or 10%.

Other flat product categories remain considerably less utilised. Cold-rolled sheets (Category 2) still have 53,493t, or 89%, of their 60,153t allocation available. Category 4.B metallic coated sheets retain 8,693t, or 33%, of their 26,020t quota, while organic coated sheets (category 5) have 4,775t, or 41%, of their 11,569t allocation remaining. Tin mill products (category 6) are among the least utilised categories, with 13,178t, or 92%, of the 14,279t quota still available.

Demand for pipe products also differs by category. Other welded pipes (Category 26) are close to full utilisation, with only 1,425t, or 6%, of the 22,453t quota remaining. By contrast, gas pipes (category 20) still have 9,405t, or 33%, of their 28,163t allocation available, while hollow sections (Category 21) retain 47,923t, or 80%, of the 59,850t quota.

Product groups which were assigned dedicated country-specific TRQs for Türkiye for the first time under the new measure have yet to see any utilisation. Electrical sheets (category 3.A), with a 9t quota, quarto plates (category 7) at 7,008t, stainless hot-rolled sheets and strips (category 8) at 3,432t, large welded tubes (Category 25.A) at 1,947t, and cold-finished bars (category 27) at 7,045t, all still have their full quotas available.

*Preliminary calculation by Kallanish
Source: EU TARIC, as of 1 July. Complied by Kallanish

Author: Elina Virchenko

kallanish.com

European domestic long steel prices remained unchanged in the week to Wednesday July 1, with weak demand continuing to limit upward price momentum across the region.

“All producers are adding weeks of production cuts to ensure that supply remains in line with demand,” a seller source told Fastmarkets.

Market participants attributed the uncharacteristically slow demand for this time of year to the ongoing heatwave across Europe, a lack of residential and construction project developments, and high prices.

“Demand is unfortunately not improving and it’s possibly slowing down further,” a buyer source told Fastmarkets.

In Italy, the tradable price for rebar was  said to be €710-770 ($810-878) per tonne ex-works, depending on the region and buyers were maintaining a wait-and-see approach, with transactions continuing within established ranges.

In northern Italy, the tradable price remained at €710-730 per tonne ex-works, while in the south prices were reported at €750-770 per tonne ex-works, although no meaningful tonnages were traded at the upper end of that range.

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

In Spain, Fastmarkets’ weekly assessment for steel reinforcing bar (rebar), domestic, delivered Spain was stable at €750 per tonne.

Domestic rebar prices in Germany were also unchanged, with tradable levels reported at €710-730 per tonne delivered with limited variations across the market.

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

Wire rod prices followed the broader long steel trend across Europe and remained steady during the assessment period.

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

In Southern Europe, sources put the tradable range for wire rod at around €690-720 per tonne delivered.

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

The European domestic flat steel sector fell silent on Thursday July 2, digesting the new EU import quotas announced earlier in the week. Some local suppliers, particularly in Italy, withdrew from the market to assess new offer prices.

Opinions on the future development of prices differed, with some sources expecting dramatic rises as early as next week, while others believed that price increases would be gradual.

Two Italian sources reported the most recent indications of tradeable prices at €680,00 ($776) per tonne ex-works, which was reflected in Thursday’s index.

Fastmarkets’ assessment of the steel hot-rolled coil index, domestic, exw Italy, was €680.00 per tonne on July 2, up by 1.87% day on day from €667.50 per tonne.

The index was up by €6.67 per tonne week on week and up by €2.50 per tonne month on month.

One of the sources expected fresh offers to surge to €750 per tonne ex-works next week, considering the lack of competition inside the country.

“I think that a large portion of the quotas for hot-rolled coil and cold-rolled coil will remain unfilled due to the uncertainties connected with Carbon Border Adjustment Mechanism [CBAM] costs,” he said, forecasting HRC import volumes to drop by 60% year on year and CRC by 80%.

“Local mills in Italy have nothing to lose if they increase prices,” he added.

Another Italian market participantwas more modest in his forecasts. “As long as there are unsold volumes of August production material in Europe, liquidity will take precedence over prices,” he said. “Once some of the buyers assess their potential missing volumes – due to inability to customs-clear material in the third quarter from single origins – we will see an evolving picture. We expect slightly higher prices for September production material, and further increases in the fourth quarter.”

Northern Europe was also quiet, with no major sales heard during the day.

One buyer reported mills’ offer indications at €700-735 per tonne ex-works on July 2, but these were not firm offers for August rolling, which were expected to come to light next week.

The same source, however, said that tradeable prices have not reached these levels yet, but found it difficult to estimate tradeable levels due to the lack of trading during the day.

A seller source from the Benelux area reported offers for August rolling at €700 per tonne ex-works and €740 per tonne per tonne ex-works for September production. The latter price point was discarded because it exceeds Fastmarkets six weeks maximum timing window.

Fastmarkets’ daily steel hot-rolled coil index, domestic, exw Northern Europe, was calculated at €690.94 per tonne on July 2, up by €9.06 per tonne from €681.88 per tonne on July 1.

The index was up by €8.44 per tonne week on week and by €3.44 per tonne month on month.

Trading tensions between the European Union (EU) and China have grown in recent months as both European business associations and institutions have increasingly recognized the threat posed by the Asian nation to the continental economy and industrial system.

European companies and institutions are more and more worried about overcapacities in several Chinese industrial segments and consequent exports at very low prices into the EU.

While some European industrial segments have been negatively affected by China’s growth for decades, the problem worsened after the introduction of US tariffs in 2025, which diverted volumes from China and also other economies away from the US and toward Europe.

What before was seen as an issue of a singular industrial segment has now turned into a political problem.

On Monday June 29, European commissioner for trade Maroš Šefčovič met with China’s minister of commerce Wang Wentao in Brussels during the first meeting of the EU-China Trade and Investment Consultations (TIC).

The two ministers agreed on four initial workstreams, namely trade and investment balancing, export controls, intellectual property rights and World Trade Organization reform and agreed to meet again at the ministerial level in Autumn 2026.

“Both sides took note of the positive results to date of the EU-China Export Control Dialogue regarding rare earth elements and other critical materials and minerals and intend to strengthen dialogue in this field,” the ministers said in a joint statement on June 29. “The two sides discussed the value of continued exchanges of information on their respective regulatory frameworks and licensing policies. They acknowledged the need to strengthen the EU-China Export Control Dialogue and agreed on the need for further facilitation efforts aimed at maintaining the stability of global industrial supply chains.”

The meeting came after weeks of rising tensions between the two counterparts and at a time when consciousness regarding the necessity to intervene had built up in Europe.

At the end of May, European manufacturing association Aegis Europe, which includes associations and companies from the metals, ceramics and transportation industries, among others, wrote a letter to the European Commission president, Ursula von der Leyen, calling for “faster and more effective trade defense procedures, as well as the urgent allocation of additional human resources in the trade defense services of DG Trade in order to enhance the speed, effectiveness, and enforcement capacity of investigations.”

The association also urged the Commission to establish a new EU instrument specifically designed to address overcapacities and their disruptive consequences for European industries and value chains. According to Aegis, the instrument should be available on demand to any industrial sector affected by loss of market share due to overcapacities and other trade distortions, give competence to the Commission to act, allow for a full value-chain approach; and require respondent countries to demonstrate the absence of overcapacities, among other things.

The EU Commission implemented a similar plan in 2025 to protect the European steel industry from unfair competition.

Ahead of the European Council meeting of June 18-19, the association also wrote to the Council with similar requests, adding that EU institutions should consider improvement of the safeguard instrument and reform the voting system in safeguards procedures. “The current rule of a qualified majority voting only adds another obstacle to a procedure which already asks the concerned industries to meet very strict conditions,” Aegis wrote. “As done for the anti-dumping instrument, the voting rule should change in adopting a Commission proposal by simple majority and blocking a proposal from the Commission only by a qualified majority of votes. Allowing the EU industry to file a safeguard complaint would also streamline the procedures – rather than having to provide the data via Member States.”

According to media reports, the EU Council asked the Commission to create new trade instruments to deal with the industrial threat posed by China.

The Council’s conclusions did not mention such a request, which was also not confirmed to Fastmarkets.

Nevertheless, a spokesperson for the Council confirmed that the topic of geoeconomic imbalances, especially with China, has become increasingly important in recent weeks – it has already been discussed at different levels within the Council, and it has become an item of discussion both at the Foreign Affairs Council and at the Trade Policy Committee.

“At the moment there are no proposals on the table, but it’s an issue that is currently being addressed,” the spokesperson told Fastmarkets on Monday June 29.

Following the June Council, von der Leyen said the EU had good discussions at the G7 earlier that week, as well as a productive discussion during the Council on structural overcapacities and the effect on global imbalances.

She highlighted how, over the past five years, imports from China into the EU have increased by 45% and that the EU recorded its largest-ever trade deficit with China – €360 billion ($410 bln), in 2025. “This is not just about cheap imports,” she said in a statement on June 19. “We see overcapacities that erode our own manufacturing base. And this is simply not sustainable. We know that we must do our homework to boost our own competitiveness. But we also have to address the global imbalances.”

Von der Leyen said discussions showed clear support for continuing the path of diversification and derisking the EU’s trade relationships. “I am pleased that we saw clear support for a European response based on unity among Member States and dialogue with China, which remains crucial. The Commission will take this forward. And the topic will remain high on our common agenda,” she said.

According to media reports, Wentao threatened the EU with retaliatory measures in case the EU would unilaterally introduce new trade instruments and impose discriminatory restrictions.

The Romanian longs market has taken a firmer direction this week after the announcement of the new EU quota period and lower quota volumes.

The reduced availability expected under the new quota structure has raised concerns over higher import-related costs and supply uncertainty, giving sellers room to test higher prices, particularly in the rebar segment. However, the overall reaction has remained cautious both in the EU and non-EU markets, as demand is still weak across Europe and buying activity in Romania remains limited. Market sources say the recent upward price attempts may be difficult to sustain unless buyers start accepting the new levels, especially ahead of the August holiday slowdown and amid the ongoing continuing cash flow pressure.

In the local spot rebar market, prices are currently heard at around €620-640/mt ex-warehouse, compared to €620-630/mt ex-warehouse last week. Some sellers are also offering at around €650-655/mt ex-warehouse, while higher indications are being tested in the market.

Domestic producer Beltrame Group is still reported to be quiet, with its rebar offers remaining broadly stable at around €635-640/mt ex-works, unchanged from last week.

In the wire rod segment, domestic prices have increased slightly to around €685-695/mt ex-warehouse, compared to €680-690/mt ex-warehouse last week. Demand is still slow, and the upward movement has remained more limited than in rebar due to weaker buying interest.

On the import side, no fresh deals have been heard so far this week, as buyers are reassessing their positions following the announcement of the new EU quota period. According to sources, Italian rebar offers have been heard at around €600/mt delivered to Romania, while Italian rebar in coil offers are at around €685-690/mt delivered. Hungarian rebar in coil offers have also been heard this week at around €695/mt delivered to Romania. Meanwhile, Bulgarian rebar offers have remained stable week on week at around €650-660/mt CPT Romania. On the non-EU import side, Egyptian rebar offers have remained stable at €535-555/mt CFR Romania, while Egyptian wire rod offers have increased to €555-575/mt CFR, compared to €555-565/mt CFR last week. Turkish rebar offers are currently heard at around €525-540/mt CFR Romania, down from last week’s wider range of €535-550/mt CFR, based on an exchange rate of €1 = $1.14.

The Bulgarian longs market has remained quiet this week, with prices showing no change while trading activity continues to be limited.

Demand is still very low, stocks are sufficient and liquidity problems remain a key obstacle to fresh purchases. In addition to these already weak market conditions, the new EU quota regime has made buyers and sellers even more cautious, as market participants are now waiting to assess how import costs may be affected. Sources say the market needs more time to understand the full impact of the new quota system, especially amid concerns that possible additional duties and taxes may eventually push final costs higher for end-users.

“There has been no change in our market recently. Prices are unchanged and demand remains very low. The market needs some time to assess the outcome of the new quota regime. We are concerned that the new quota may result in significant additional duties and taxes, which will eventually be passed on to the end buyer and lead to higher prices. Europe is becoming more and more uncompetitive,” a Bulgarian market source told SteelOrbis.

In the domestic market, Bulgarian longs quotations have remained stable week on week. Rebar prices are still heard at around €625-635/mt CPT Bulgaria, while wire rod prices are unchanged at approximately €670-690/mt CPT.

In the import segment, no fresh bookings have been reported this week. Turkish rebar offers are currently heard at around $570-580/mt FOB, compared to $580-590/mt FOB last week, corresponding to approximately €525-530/mt CFR Bulgaria. Egyptian rebar offers are estimated at around $580-600/mt FOB, unchanged week on week, with CFR levels still calculated at around €530-555/mt CFR Bulgaria. Egyptian wire rod offers are heard at $600-620/mt FOB, compared to $600-610/mt FOB last week, translating to roughly €550-570/mt CFR Bulgaria.

As for EU-origin material, no fresh Italian rebar offer has been heard this week, while the latest known indication was at around €655/mt CPT Bulgaria. No firm Romanian offer has been reported either, though previous delivered indications were at around €650-660/mt. Sources note that the firmer mood recently seen in Romania may support higher expectations, but for now these levels remain indicative in the absence of confirmed offers or deals.

Turkish suppliers exhausting their sharply reduced EU quota for hot-rolled coil on the first day of the new allocation period has increased pressure on Turkish flat steel producers, Kallanish notes.

On 1 July, material awaiting allocation under Türkiye’s HRC quota (category 1.A) reached 229,564 tonnes, compared with a TRQ of 160,574t, exceeding the available volume by 68,990t, or 43%. The quota for metallic coated sheets (category 4.A) was also oversubscribed, exceeding the TRQ by 6,414t, or 10%.

Market participants say the immediate oversubscription of key flat steel quotas has increased uncertainty for Turkish exporters.

Turkish mills were heard offering HRC at $605-625/tonne ex-works in the domestic market, while export prices were reported at $595-615/t fob.

With Türkiye’s HRC quota effectively exhausted, some producers expect European HRC prices to strengthen. “Silence – awaiting price increases in the EU by €120-130/t,” was one Turkish producer’s description of market sentiment. Overseas buyers are targeting much lower prices of $565-570/t fob, he adds.

One trader says the market expects Turkish HRC prices to decline by a further $20-30/t before stabilising, with participants preferring to wait for a clearer indication of demand.

On the import side, HRC from China and Vietnam was heard offered at around $540/t cfr Türkiye.

Author: Elina Virchenko

kallanish.com

Contexte has obtained compromise parliamentary amendments (here, here and here) on a proposal to extend the CBAM tax on carbon-intensive imports.

If there’s severe disruption to the internal market, CBAM revenues could be redirected to aid affected sectors, they said. This would replace the controversial Article 27a, a temporary emergency brake on the levy.

The amendments also increase, to 277 product categories (CN codes), the list of 180 extra goods the Commission proposed to bring within scope.

For this new list, MEPs lowered, from 150 to 50 kilotonnes of CO₂ equivalent, the emissions thresholds used to include products.

Another amendment focuses on EU candidate countries facing an “immediate security situation” that makes on-site verification impossible — an implicit reference to war-torn Ukraine.

Such countries would be allowed to use default emission values without a mark-up.

The amendments also suggest applying CBAM to imports made via online retailers.

They also seek to simplify reporting obligations for the least developed countries and strengthen anti-circumvention measures.

This draft could still change ahead of a 6 July vote in the environment committee, ENVI, but should be adopted by a large majority ranging from The Left to the centre-right EPP groups.