Year: 2026

European domestic coil producers targeted higher prices for third quarter production in the week to 2 April, while spot prices for second quarter rolling material remained stable, despite special deals settled with a substantial discount in special circumstances. 

Northwest European steelmakers have started to offer third quarter production hot-rolled coil (HRC) at EUR750-770/t ex-works, seeking around a EUR50/t increase compared to the latest transactions. While no spot deals have yet been settled at higher prices, some market participants believe that the combination of toughening of EU import quotas, Carbon Border Adjustment Mechanism (CBAM) effects, and rising energy costs will force buyers to accept higher prices later this year.

The majority of transactions in the region have been reported at EUR700-730/t ex-works, with most sources reporting deals at EUR720/t ex-works.

A steelmaker in the region has transacted HRC at a lower price of 680/t ex-works. While this information was widely confirmed across the market, reactions with mixed among market participants. Some claim the deal level is evidence of a reverse in price direction, expecting sluggish demand and further weakening of steel consumption to offset bullish supply drivers and soften price levels. Others, however, see the discounted deals as special trades, not repeatable by other buyers and instead offered at lower prices to fill gaps in mill orderbooks.

Multiple market sources, including a party to one of the deals, said that such prices were available only for a limited period to select customers, in small volume, to fill second quarter rolling schedules. The steelmaker has reportedly suffered worse order books in comparison to competitors, with other northwestern steelmakers denying equivalent bids.

“Some deals made with a discount is not a sign of a trend change,” a German service center said. “Some people are trying to speculate on the usual special deals to fill production lines. Such prices could also be available for index-based sales, but not in the spot market.”

Sources reported a deal settled below EUR700/t ex-works in Poland, attributing the trade to an index-based agreement.

Concerns regarding a possible demand decline were fairly unanimous across the market, given the negative outlook for the automotive industry as a result of the geopolitical situation in the Middle East. Sentiments became particularly acute following Iran’s bombing of aluminium plants in UAE and Bahrain on 29 March, in retaliation for US attacks on Iran’s own steel mills, causing a sharp rise in aluminium prices. This has worrying implications for the automotive sector, as rising oil costs are reportedly also driving prices of plastic car components higher. As supply disruption to only a portion of automotive material requirements could stop production, market participants fear the potential impact on steel consumption.

Despite concerns, multiple sources said that European steelmakers would rather shut down some furnaces to balance supply and demand, than accept lower steel prices.

“Energy costs are higher and will move further up in the second half of the year,” a trader said. “Even if carmakers reduce steel consumption, the demand drop will be bigger compared to cuts of import volumes. Mills will do what they did before – and stop some furnaces.”

In Italy, domestic prices for HRC have been reported at EUR700/t ex-works for second quarter production.

Import HRC offers dry up

The number of import offers for HRC in Europe has decreased as exporters are dealing with rising energy and freight costs, as well as cost risks related to the EU’s new steel import quotas, expected to be in force for July.

European buyers are avoiding relying on the overseas material on similar risk factors, as well as CBAM. Buyers report a preference to monitor import quota usage in the second quarter, assessing whether imports from neighboring exporters (able to deliver before July) might be more attractive in the coming months.

The only import offers of HRC from Turkey have been heard at EUR570-580/t CIF, anti-dumping duty inclusive.

Offers of Asian material on a DDP basis were reported at EUR680-690/t.

Downstream coil – CRC availability scarce

Availability of cold-rolled coil (CRC) remains limited on the continent; European mills have been avoiding the product due to high energy costs, preferring to focus attention on HRC or hot-dipped galvanized coil (HDG), with their higher added value.

CRC offers in Northwest Europe have been reported at EUR820-840/t ex-works; and HDG at EUR800-850/t ex-works.

On top of this domestic prioritization of other coil products, import availability of CRC has also decreased due to both pending quota reductions and the Commission’s anticipated decision on the EU’s active anti-dumping probe. The European Commission started an investigation into CRC imports from India, Japan, Turkey, Vietnam and Taiwan, China in September last year.

Only one deal for ex-China CRC was reported at EUR570-580/t CIF Europe, but adding anti-dumping duties brings the price to around EUR690/t CIF. The import will also be subject to CBAM duties, and potentially out-of-quota duties if the volumes exceeds relevant quota limits.

Import CRC from Asia, including CBAM duties, was reportedly available at EUR780-790/t DDP Italian ports.

EU green steel market

Green steel trading has not been a priority for most spot buyers, particularly taking into account demand concerns and rising costs. Sources, however, do report a gradual increase in demand from projects that need to meet their decarbonization targets. Volumes remain muted in comparison to traditional steel trading, but market sources believe that the European Commission’s proposed Industrial Accelerator Act could boost demand for low-CO2 steel moving forward.

Spot buyers estimated achievable green premiums at EUR80-90/t for HRC with CO2 content of around 0.7t.

Author: Benjamin Steven & Maria Tanatar

opisnet.com

Italian longs producer Acciaierie Bertoli Safau (ABS), the steelmaking division of equipment maker Danieli Group, has broken ground on its new “Hybrid Digital Green Plant” at its Pozzuolo del Friuli facility in northeast Italy. This represent a €400 million ($461.29m) investment of which €355m is devoted to Danieli equipment, a company spokesperson confirms to Kallanish.

The plant, an advanced special steel production line, is part of ABS’s €817m investment plan for the period 2023-2028 with the aim to cut CO2 emissions by 30% by 2030. It includes revamp of the two remaining Cargnacco furnaces. Total capacity will rise from the current 1.4 million tonnes to over 2.1mt/year when the industrial plan is completed, the spokesperson confirms.

With the Hybrid Digital Green Plant, for the first time, 12 Danieli proprietary technologies are integrated within a single production facility. ABS is implementing the full range of Danieli’s latest steelmaking innovations in one line, from scrap handling and melting through to secondary metallurgy, fume treatment, water recovery, continuous casting and full automation.

At the heart of the plant is the Digimelter, Danieli’s next-generation EAF. Fed by the so-called “endless continuous scrap charging (ECS)” system, it preheats scrap to around 400°C using residual fume heat before entering the furnace. The Q-One digital power system minimises grid disturbances, improves energy efficiency and allows direct input from renewable sources. The equipment promises a 50 kWh/t drop in electricity consumption, 20% lower graphite electrode use, 16% lower carbon intensity and a 34% reduction in complex reagents.

With no personnel on the production floor, machine learning systems control the entire plant fully automated. A closed-loop cooling system cuts water use by up to 50%, recovering over 24 MW of thermal energy. The EU-funded “Custard” project will convert combustion CO2 into sodium bicarbonate, cutting emissions by over 13,000/t, with 20 MW of residual heat feeding Udine’s district heating network.

“With the Hybrid Digital Green Plant we are continuing the journey begun over ten years ago with the design of the Saturno-QWR line,” ABS chairman and Danieli vice president Camilla Benedetti says in a note. “Thanks to this new low-carbon footprint line, we will deliver our strategy in the special steels market through two key drivers: efficiency… and the improvement of our environmental footprint.”

Danieli expects its steelmaking division results to improve significantly this year as a rise in shipments has been seen during early 2026 thanks to improved prices and margins. That enables a possible return to profitability for ABS. A growing order book is laying the foundation for potentially stronger revenues and margins in 2026/2027 compared with the current financial year, the company notes in its recent financial statement.

Author: Natalia Capra

kallanish.com

Mills all over Europe attempted another round of price increases, but the new prices were not widely accepted due to the slowdown of activity amid the approach of Easter holidays.

Some buyers, however, expected no negative price corrections in the near. future and preferred to book what is possible now, to minimize restocking at higher prices as much as possible.

Rebar offers in Northern Europe from both regional suppliers as well as from Southern Europe, varied within the range of €670-690 ($776-800) per tonne delivered, while workable prices were estimated at €655-665 per tonne delivered, which was reflected in Fastmarkets’ index.

Fastmarkets’ weekly price assessment for steel reinforcing bar (rebar), domestic, delivered Northern Europe, rose to €655-665 per tonne on April 1, from €640-655 per tonne on March 25.

The corresponding weekly price assessment for steel wire rod (mesh quality), domestic, delivered Northern Europe, rose to €670-680 per tonne on April 1 from €650-670 per tonne on March 25.

Market sources reported that, in the rebar sector, acceptance of higher prices was better than in the wire rod sector.

In this connection, Fastmarkets’ weekly price assessment for steel reinforcing bar (rebar), domestic, delivered Spain, rose to €715-725 per tonne on April 1, from €695-715 per tonne on March 25.

Mills attempted to raise wire rod offer prices to €710 per tonne delivered but this gained no traction among customers. Most recent sales were reported at €680 per tonne delivered.

In Italy, deal levels varied within the wide range of €650-670 per tonne delivered in the week, but some offers were already being heard at €680-690 per tonne delivered.

As a result, Fastmarkets’ price assessment for steel wire rod (mesh quality), domestic, delivered Southern Europe, remained at €650-680 per tonne delivered on April 1, unchanged week on week.

Long steel prices have been increasing across Europe due to higher costs for energy and transportation, although the latest round of higher offers had yet to be absorbed by the market, with activity slowing before the holiday.

Meanwhile, Polish mills were not yet fully booked, according to trade sources.

Over the week, sources reported deals for rebar at 2,700 zloty ($729) per tonne CPT, with no indications of sales below that level.

Deals for lower tonnages were reported within the range of 2,750-2,780 zloty per tonne CPT.

Fastmarkets’ weekly price assessment for steel reinforcing bar (rebar), domestic, cpt Poland, was 2,700-2,780 zloty per tonne on Thursday, rising from 2,650-2,720 zloty per tonne the previous week.

Meanwhile, prices for wire rod widened in the week to Thursday.

Fastmarkets’ weekly price assessment for steel wire rod (drawing quality), domestic, delivered Poland, was 2,800-3,000 zloty per tonne on Thursday, widening downward from 2,815-3,000 zloty per tonne the previous week.

The lower end was attributed to a deal heard around 2,800 zloty per tonne delivered, while market sources also reported tradable levels around 3,000 zloty per tonne delivered.

Derivative articles substantially made of steel, aluminium or copper will pay a flat 25% duty on their full value, according to the presidential proclamation on Thursday, a departure from the previous method of collecting 50% tariffs on just the metals component of a product imported into the US.

Some market sources speculated that this move would increase the import prices of derivative products.

“Articles made entirely or almost entirely of aluminium, steel or copper will pay a flat 50% on their full value — for example, steel coils and aluminum sheet,” the proclamation said.

Commodity-grade steel and aluminium are already subject to 50% tariffs on being imported into the US.

Additionally, certain metal-intensive industrial equipment and electrical grid equipment will pay 15% duties through 2027, to “accelerate the massive industrial base buildout currently underway across the United States.”

Also, “products made abroad but entirely with American steel, aluminium and copper will be subject to lower tariffs of 10%,” according to the proclamation, and products made of 15% or less steel, aluminium or copper will no longer be subject to Section 232 metals tariffs.

Kevin Dempsey, president and chief executive officer of the American Iron and Steel Institute (AISI), applauded the action.

“AISI commends the decisive action taken today by President Trump to ensure that all steel mill products, including steel pipe and tube, receive the full benefit of the 50% tariffs on steel products,” Dempsey said on Thursday.

“We also welcome the steps being taken today to simplify the process for applying the steel tariffs to critical steel derivative products,” Dempsey said.

“These measures will ensure that the steel tariff program operates effectively and efficiently and will ensure the long-term durability of the Section 232 tariffs, which remain essential to address the adverse impacts of global steel excess capacity that continues to grow due to foreign subsidies and other trade-distorting practices,” he continued.

Steel Manufacturers Association president Phil Bell had similar words of appreciation for the move.

“The Steel Manufacturers Association applauds the Trump administration’s actions today to strengthen the Section 232 steel tariffs,” Bell said on Thursday.

“By right-sizing the derivatives list and updating the valuation of steel-containing goods, these measures reinforce President Trump’s signature trade achievement, ensuring the tariffs remain precisely targeted to support the revitalization of the American steel industry without undermining broader economic goals,” he continued.

Bell highlighted the importance of expanding metals tariffs to include derivative products as well.

“Last year, the Commerce Department’s introduction of a steel derivatives inclusion process responded to urgent concerns from downstream manufacturers,” Bell said on Thursday. “While domestic raw steel production increased under strengthened tariffs, many steel-containing goods continued to be dumped into the US market, placing significant strain on American manufacturers. The robust derivatives process helped close these gaps, strengthening supply chains and supporting US manufacturing.”

US primary aluminium producer Century Aluminum also welcomed the news.

“Century Aluminum Company is applauding President Donald Trump’s new executive order that will close valuation loopholes that importers have been using to avoid the President’s tariffs on steel and aluminium, leveling the playing field for American manufacturers,” the company said in a statement on Thursday.

“Importers had been abusing valuation loopholes to reduce their liability under the President’s steel and aluminum tariffs. In some instances, importers declared only the value of raw steel and aluminium while excluding value added through processing, thereby lowering the tariff owed and disadvantaging domestic manufacturers,” Century said.

“The order clarifies that importers must declare the full value of covered products, promoting consistent enforcement and fair competition across the aluminium supply chain,” it continued.

Century CEO Jesse Gary enumerated the beneficial impact of the Section 232 tariffs on domestic producers.

“With the 50% Section 232 tariffs on primary aluminum still fully in force with no exemptions or exceptions, today’s executive order reinforces that foreign actors will no longer be allowed to game the system at the expense of Americans,” Gary said.

“Century Aluminum is proof that President Trump’s policies are working. Since President Trump reinforced Section 232 last year, with no exemptions or exceptions, we have expanded US aluminum production by 10% and committed billions to new capacity that will double US production and create thousands of new American jobs,” Gary said on Thursday.

A Canadian distributor had earlier issued a stark warning about the impact on the Canadian manufacturing sector if duties are collected on the entire value of a product rather than just the metals component.

“If they actually go forward with this, it will decimate Canadian manufacturing,” the distributor said. “Paying 25% on the entire invoice value of finished items in the 400+ list of tariff codes considered derivative will increase tariffs paid by many, many multiples.”

A second Canadian source, though, was positive about the development.

“We are paying a 50% tariff on everything top to bottom already; if they tariff 25% on the total commercial value instead of the steel content, it will improve things,” the second Canadian source said.