Year: 2026

Gestamp has signed a long-term power purchase agreement (PPA) with energy company Iberdrola for the supply of 660,000 megawatt-hours of electricity to a number of its European plants, Kallanish notes.

The ten-year deal joins others signed by the Spanish-headquartered supplier of automotive components. These have already allowed it to cover 100% of its production activities in Spain and Brazil with renewable energy sources, as well as a significant portion in India and Mexico.

The latest PPA covers 34 MW of installed capacity and will enable Gestamp’s plants to be supplied with 80% renewable energy sourced from Iberdrola’s wind portfolio and the remaining 20% from its solar farms.

“This agreement enables us to secure a long-term supply of renewable energy at a fixed and competitive price, in line with our strategy to enhance the stability and predictability of production processes, with a focus on energy efficiency and the use of renewable sources,” explains Getsamp. “This forms part of our ambitious sustainability strategy, which aims, among other objectives, to continue contributing to the decarbonisation of the automotive industry’s supply chain.”

Gestamp has 100 production lines and facilities in 24 countries, 29 of which are located in Spain. The electricity consumed at its Spanish facilities accounts for 18% of the company’s total consumption.

 

The Trade Remedies Authority (TRA) has published its final decision on its review of the tariff rate quotas (TRQ) on categories 4 and 7 steel – metallic coated sheet and non-alloy and other alloy quarto plate, Kallanish notes.

The decision that the current restrictions be maintained follows the recommendation issued in February despite submissions by several market players seeking changes. The review came after applications by ISTA and Babcock International Group alleging a change in circumstances.

The effect of the review comes into place from 1 April.

Comments were submitted after the Statement of Intended Final Determination (SIFD) by Spartan UK, Tata Steel UK, Stemcor, Hoa Sen Group, Posco Steeleon, the Korean government, Korea’s Iron and Steel Association (KOSA) and India’s Ministry of Commerce.

Spartan requested the TRA “extend the scope of the TRQ Review to also look into the import volume from Indonesia, to add Indonesia to the list of developing countries non-exceptions, and extend the cap on the amount of imports coming from one country within the residual quota […] to Indonesia”. However, the TRA considered the request to fall outside the scope of the review and will therefore not consider it further.

The TRA reiterates its determinations within the review are based on evidence received of production during and after the period of investigation (POI). UK producers Spartan, TSUK, and Liberty Dalzell each provided evidence of actual production during and after the POI captured by commodity codes in category 7.

The TRA concluded that part of the quota allocations for categories 4 and 7 were exhausted during the POI. Whilst individual country quotas and the residual quota for categories 4 and 7 were not exhausted during the POI, its analysis shows that individual country caps for Vietnam and Korea were routinely reached after the introduction of these caps on 1 July 2025.

It notes that only 34% of the total category 4 tariff rate quota was utilised during the POI and the TRA has concluded that the current safeguard measure is sufficiently liberal to allow downstream users of category 4 products to purchase imports from countries other than Korea or Vietnam without a significant risk of incurring the out-of-quota safeguarding duty.

 

CBAM has a potential cost impact on long products of €50/short ton ($58) but is yet to be fully realised due to significant import frontloading prior to CBAM implementation in January, says US steelmaker CMC of its European operations.

CMC Poland saw steel shipments fall 8% on-year in its second fiscal quarter through February to 284,000 short tons, driven by lower rebar deliveries as merchant bar and other products sales rose 2% to 215,000st, Kallanish notes.

The large quantity of rebar imported ahead of CBAM implementation temporarily dampened demand for domestic material, CMC notes. Despite this overhang, the average selling price for CMC’s steel products rose 10% on-year to $672/st, in anticipation of CBAM’s eventual supportive impact. Cost of scrap utilised was up 6% to $356/st.

CMC’s Europe Steel Group achieved its highest total steel products average selling price in six quarters.

Revenue increased 1% to $200 million but adjusted Ebitda was negative 0.7% versus positive 0.4% a year earlier.

Adjusted Ebitda should improve substantially in the following quarter on higher seasonal volumes, modestly improved metal margins, and the anticipated receipt of an approximately $20m CO2 credit, CMC says.

In the six months through February, steel shipments grew 4% on-year to 646,000st, while sales rose 10% to $447.7m but Ebitda fell 64% to $9.5m.

 

The European Commission has announced the first Emissions Trading System (ETS) reform measure proposal, which would allow all allowances in the Market Stability Reserve (MSR) above 400 million to be kept as a buffer to support market stability. Currently, all allowances above this number are invalidated annually.

Although a key decarbonisation driver in the EU, “in light of recent challenges, the EU ETS needs to be modernised and made more agile”, the Commission says in a note seen by Kallanish.

The MSR, in operation since 2019, is a rules-based mechanism that reduces the supply of emissions allowances to the market when there are too many in circulation and injects allowances when there is market scarcity. It addressed the allowance build-up after the 2008 financial crisis and helped restore confidence in the carbon market, invalidating 3.2 billion allowances in the process, the Commission says.

“Therefore, the invalidation provision has served its purpose. It should cease to apply from the date of entry into force of this amendment. The earlier the proposal is adopted, the more allowances could be prevented from being invalidated and could be held in the MSR,” it notes.

The proposed change will better equip the MSR to respond to future market developments. “Allowing a greater number of allowances to remain in the MSR rather than invalidating them could provide an essential liquidity buffer to manage future market tightness after the mid-2030s and beyond,” it adds.

The proposal will now be submitted to the European Parliament and Council and would need to follow the ordinary legislative procedure (co-decision) for adoption.

A comprehensive review of the EU ETS will follow in July. This will include any relevant adjustment to keep the MSR fit for purpose in the next decade.

 

Negotiations with the two bidders for the sale of Acciaierie d’Italia (ADI) are becoming increasingly complicated, Kallanish observes.

The protracted process also reflects the reluctance of banks and credit institutions to finance the relaunch of the Taranto site, which remains in a complex legal situation following the judiciary’s seizure of one of its blast furnaces last year over pollution concerns, creating an unresolved chain of responsibilities.

Flacks Group confirms it has asked the government for a vendor loan to support the site’s relaunch. “Not one bank after talking to 30 banks would lend money due to the court seizure of the Taranto site in November and all the issues surrounding Ilva,” Michael Flack tells Kallanish.

He adds that the slow Italian system, which needs to take into account Taranto’s level of pollution and the legal intricacy of the situation, is making the process extremely complicated and long. The vendor loan is intended to finance the relaunch of Ilva for the first six months after Flacks is awarded the plant.

Meanwhile, Jindal’s offer appears to have stalled, with sources close to the dossier believing it has not been retained. This comes amid market rumours the steelmaker has not provided financial guarantees as required.

The proposed plan involves boosting Taranto’s re-rolling capacity rather than primary steelmaking. Over the next four years to 2030, the Taranto plant would operate with two blast furnaces while one electric arc furnace is constructed. From 2030 onwards, the blast furnaces would be shut down and dismantled, with production shifting to EAF steelmaking. Sources have previously said these plans could result in the permanent loss of capacity, with employment also impacted.

By contrast, the plan presented by Flacks Group involves ramping up crude steel output at Taranto to 6 million tonnes within 18 months of completion of the sales process. This includes maintaining a workforce of over 6,000 employees, installing three EAFs and a 100MW solar plant on site, and potentially developing a DRI unit as the blast furnace route is gradually phased out.

Jindal has been contacted for comment by Kallanish.

 

Luxembourg-based steelmaker ArcelorMittal has announced a partnership with French automaker Renault Group focused on sustainable mobility, marked by the start of deliveries of low-emission steel for electric vehicle (EV) production.

Since September 2025, ArcelorMittal has been supplying its Usibor® 1500 XCarb® steel for five hot-stamped structural components used in several Renault models.

Low-carbon steel production with EAF route

The steel is produced via an electric arc furnace route using 75 percent recycled content and powered entirely by renewable electricity. This production method enables a reduction in carbon emissions of nearly 70 percent compared to conventional blast furnace-based steelmaking, supporting the decarbonization of the automotive supply chain.

For several years, the Renault Group has used Usibor® 1500 for its body structural components. Now, as part of its broader decarbonization strategy, Renault has collaborated with ArcelorMittal to validate multiple steel grades developed under the XCarb® initiative.

The newly approved XCarb® version of Usibor® 1500 maintains the same mechanical performance and safety characteristics as conventional grades while significantly reducing the carbon footprint of vehicle components.

The use of advanced low-carbon steel supports both emissions reduction targets and lightweight vehicle design, contributing to improved efficiency in electric vehicles.

Author: SteelOrbis Editorial Team

steelorbis.com

 

The Turkish steel sector has stated that the default emission values under the EU’s Carbon Border Adjustment Mechanism do not accurately reflect Turkey’s low-carbon production structure, calling for a reassessment of the methodology.

Yalçın Ertan, chairman of the Aegean Ferrous and Non-Ferrous Metals Exporters Association, emphasized that CBAM has become a key policy tool in a global trade environment increasingly shaped by carbon considerations.

Default values risk distorting competitiveness

Ertan noted that, for Turkey’s export-oriented steel industry, CBAM is not only an environmental mechanism but also a strategic factor directly impacting competitiveness in the EU market.

While the mechanism aims to prevent carbon leakage and support sustainable production, he stressed that calculation methodologies must reflect the actual production conditions of exporting countries.

EAF-based production structure overlooked

According to Ertan, approximately 70 percent of Turkey’s steel production is carried out via the electric arc furnace route, which relies heavily on scrap and results in significantly lower carbon emissions compared to blast furnace-based production. However, in cases where verified emissions data are not submitted, default emission values are applied. He argued that these default values appear to be based on higher-emission production routes, failing to reflect Turkey’s actual carbon intensity. In some cases, Turkey’s assigned values are reported to be higher than those of regions where production is predominantly based on blast furnace routes, creating a clear competitive disadvantage.

Ertan also highlighted ongoing uncertainty regarding accredited verification bodies required under CBAM. Although the EU mandates verification of emissions data, the institutions authorized to carry out this process have not yet been clearly defined. This could limit companies’ ability to access verification services in a timely manner, potentially leading to additional costs and operational challenges.

Call for alignment with real data

The Turkish steel sector has called for emissions to be calculated based on verified, plant-level data in line with CBAM methodology. Ertan stressed that recognizing Turkey’s EAF-based production structure is essential to preserving export competitiveness, while also urging stronger institutional engagement to address verification issues and ensure that Turkey’s position is effectively represented in international discussions.

Author: SteelOrbis Editorial Team

steelorbis.com

Romania’s sole flat steel producer Liberty Galati is preparing to resume operations after nearly seven months of inactivity, following a failed sale process in which the asset was deemed overpriced and failed to attract buyers. After the unsuccessful process, the Romanian government stepped in, declaring the company an operator of strategic economic interest and enabling financial support measures aimed at stabilizing operations.

According to official statements and local media reports, the decision allows the company to access state-backed funds through the national Guarantee Fund to cover unpaid wages for nearly 3,000 employees. The payment backlog had built up after the company suspended most of its operations in recent months, placing a large share of its workforce on technical unemployment.

Preparations to restart operations at the Galati steelworks are reported to have begun, with market sources indicating that any restart is likely to be gradual. Initial activity is expected to focus on rolling mills, mainly under tolling arrangements. However, sentiment in the market remains cautious. Despite the state intervention, Liberty Galati is still seen as being in a debtor position toward both the state and private counterparties. Combined with previous disruptions in order fulfillment and delayed payments, this continues to weigh on the company’s credibility and raises doubts over its ability to secure new orders in the near term.

“Given the previous issues with unpaid obligations and operational disruptions, it remains unclear how quickly the company can regain market trust and attract fresh orders,” a regional source told SteelOrbis.

 

Domestic hot-rolled coil (HRC) prices in Northern Europe and in Italy were broadly unchanged on Wednesday April 1, with limited trading activity amid prolonged uncertainty in the market and the Easter holidays fast approaching, Fastmarkets heard.

“Buyers don’t know if prices will go up further, so they don’t want to overspend” a source said but added that persistent limitations with imports might cause prices to go higher.

However, no new trading was reported during the day for May-June delivery coil, with fewer orders and enquiries in the market in the run-up to the holiday, sources said.

Fastmarkets’ daily steel hot-rolled coil index domestic, exw Northern Europe was calculated at €711.50 ($818.48) per tonne on April 1, unchanged day on day.

The index was down by €3.50 per tonne week on week and up by €25.43 per tonne month on month.

The Italian market also remained quiet on April 1, with no new transaction activity reported during the day.

Market participants still estimated workable levels for domestic HRC at €690-700 per tonne ex-works.

Fastmarkets’ steel hot-rolled coil index domestic, exw Italy was calculated at €695 per tonne on Wednesday, also unchanged day on day.

The index was down by €2.14 week on week, but up by €24.37 per tonne month on month.

According to sources, real consumption remains weak, with recent upward trends linked to the introduction of new trade regulations, like the EU’s Carbon Border Adjustment Mechanism (CBAM), which has limited import volumes while favoring domestic production.

Meanwhile, prices for imported HRC decreased in parts of the market with some assessments reflecting lower offer levels, while others tightened at the lower end.

Fastmarkets’ weekly price assessment for steel hot-rolled coil import, cfr main port Southern Europe was €610-640 per tonne on Wednesday, decreasing from €640-690 per tonne the previous week.

A transaction was reported from Turkey to Southern Europe at €610-620 per tonne CFR, while offers from Turkey and Algeria were heard at €610-640 per tonne CFR.

On the other hand, prices for imported HRC to Northern Europe narrowed up in the week to April 1, with offers from Turkey heard at €620-685 per tonne CFR.

Therefore, Fastmarkets’ weekly price assessment for steel hot-rolled coil import, cfr main port Northern Europe was €620-685 per tonne, narrowing up from €608-685 per tonne the previous week.

The DDP assessment for HRC imports to Southern Europe also decreased amid reports of lower offers from Asian origins heard around €690 per tonne DDP, while offers from Turkey were heard around €720 per tonne DDP.

Fastmarkets’ weekly price assessment for steel hot-rolled coil import, ddp Southern Europe was €690-720 per tonne on April 1, decreasing from €720-740 per tonne the previous week.

The DDP assessment for imported HRC to Northern Europe was unchanged.

 

Brazilian industrial exporters continued to face a high degree of uncertainty following the entry into force of the EU’s Carbon Border Adjustment Mechanism (CBAM), as key aspects of the system — including methodologies, certification processes and compliance requirements — remained under development.

Three months after implementation began, market participants said there is still limited clarity about how the mechanism would operate in practice, reinforcing challenges for companies seeking to adapt to the new framework.

Meanwhile, the National Confederation of Industry (CNI), the entity representing Brazilian industry, told Fastmarkets that the mechanism is already creating challenges.

“Companies that are not prepared to measure and report their emissions may face additional costs and difficulties in accessing the European market,” Davi Bomtempo, superintendent of Environment and Sustainability at CNI, aid on March 11, adding that the ability to provide verifiable carbon data has become a key condition for maintaining export competitiveness.

The EU’s instrument to apply a carbon price on imported products ensures that foreign producers face costs equivalent to those paid by European companies under the bloc’s emissions trading system.

Importers must now report and verify the emissions embedded in products such as steel and aluminium and purchase corresponding certificates, effectively extending carbon pricing to international trade.

The impact is expected to be concentrated in emissions-intensive sectors, with iron, steel and aluminium among the most exposed, given their relevance in exports to the EU, according to the CNI.

Short-term impact limited by unclear CBAM rules
Despite the formal requirements, the verification infrastructure is not yet fully operational, according to industry sources.

“People are still being trained, and methodologies and calculations are still being defined,” Silvia Nascimento, chief executive officer of the green long steel producer Aço Verde do Brasil (AVB), told Fastmarkets on March 27.

AVB produces long steel products sustainably, being the steelmaker with the lowest CO2 emissions per tonne of steel produced in Brazil, according to GHG Protocol data.

The company produces rebar and wire rod and aims to export these products to Europe in the future.

Fastmarkets’ monthly price assessment for steel wire rod (mesh quality) export, fob main port Latin America was $545-585 per tonne on March 6, up from $525-545 per tonne in the previous month.

For now, through CBF Indústria de Gusa, one of Brazil’s pig iron producers, they produce 260,000-300,000 tonnes of pig iron per year, with 50% destined for Europe.

Fastmarkets’ weekly price assessment for pig iron export, fob port of Vitoria/Rio, Brazil was $460 per tonne on March 27, up from $450-465 per tonne on March 20.

And Fastmarkets’ weekly price assessment for pig iron, export, fob Ponta da Madeira, Brazil was $455-475 per tonne on March 27, up from $450-460 per tonne a week earlier.

“We’ve already reached out to certifiers, such as SGS and Bureau Veritas, with processes expected to move forward around September or October this year,” Nascimento added, noting that no companies have been certified so far. “Some say certain products will be included, others say they won’t. So everything is still very preliminary at this stage.”

The emissions verification process is expected to begin in the fourth quarter of 2026, while the first CBAM Certificate price will be published on Tuesday April 7, the European Commission reported.

This lack of clarity has made it difficult for exporters to assess potential costs or define adjustment strategies, particularly as certification requirements remain unclear.

“There may be an advantage [for Brazilian exporters], but no one can clearly quantify how significant that advantage will be. It all depends on what the final certification requirements look like,” Nascimento said.

Market participants also pointed to uncertainty regarding the timing of costs. While CBAM entered into force in 2026, payments for that year’s imports are expected to be settled in 2027, with charges applied retroactively from January 1, 2026, adding another layer of complexity for exporters.

In terms of product-level impact, market participants see limited immediate commercial shifts, as, according to Nascimento, “at the moment, it doesn’t make much sense commercially.”

Domestic regulation gains urgency under CBAM
The mechanism is also reshaping the domestic regulatory debate, reinforcing pressure for the operationalization of Brazil’s regulated carbon market. Under CBAM rules, importers can reduce the number of certificates purchased if it is proven that a carbon price has already been paid in the country of origin.

“Countries with explicit carbon pricing will have a competitive advantage over those that do not,” the CNI said, noting that the mechanism reinforces the need to advance Brazil’s regulated carbon market to avoid the transfer of resources abroad.

The Brazilian government, in turn, is moving forward with the implementation of the system following the enactment of the Brazilian Emissions Trading System (SBCE) law in December 2024, currently focusing on defining governance, sectoral scope and monitoring, reporting and verification (MRV) rules.

“We are in the phase of structuring the pillars of the system, including governance, scope definition and the development of the central registry and MRV criteria,” Cristina Reis, the country’s extraordinary secretary for the Carbon Market, said in an interview with Fastmarkets on March 16.

Reis noted that key steps are expected to be completed in 2026, with some measures already planned for the first half of the year.

For Bomtempo, a central point is advancing the implementation of the SBCE and providing legal certainty to the system. “To achieve this, it will be important to publish the implementing regulations by the end of 2026 and to structure the rules for monitoring, reporting and verification of emissions,” he said.

He stressed that the CNI was selected to represent the industrial sector in the Permanent Technical Advisory Committee of the SBCE, which will play an important role in defining the rules of Brazil’s carbon market.

The government said it is seeking to align the system with international carbon markets, according to Reis, including interoperability of MRV rules and emissions accounting, as part of a broader strategy to strengthen competitiveness and facilitate integration with other jurisdictions.