Year: 2026

Worthington Steel has exceeded the minimum acceptance threshold in its voluntary public tender offer for German steel and metal distributor Kloeckner & Co SE, marking a decisive step in its planned acquisition.

At the close of the initial acceptance period on 26 March, Worthington Steel secured approximately 58.8% of Kloeckner’s issued share capital, surpassing the required 57.5% threshold, Kallanish determines from company statement. This total includes both shares tendered into the offer and voting instruments held by Worthington Steel GmbH, the wholly owned German subsidiary established for the transaction.

“We are pleased with the strong support from shareholders during the initial acceptance period, which brings us an important step closer to completing the transaction,” says Geoff Gilmore, Worthington Steel president and chief executive.

The company confirms that shareholders who have not yet accepted may still participate during the additional acceptance period, open through 14 April.

“As we enter the additional acceptance period, we are delighted to provide shareholders with another opportunity to participate in the offer.” says Gilmore.

Worthington Steel announced its intention to acquire Kloeckner in January through an all‑cash offer of €11/share ($12.70/share), representing a 98% premium over Kloeckner’s undisturbed three‑month volume‑weighted average price as of 5 December. The offer document was published on 5 February and amended to a lower threshold on 10 March.

Following completion of the transaction, Worthington plans to pursue a domination and profit and loss transfer agreement (DPLTA) with Kloeckner. The deal remains subject to regulatory approval, with completion expected in the second half of 2026.

Worthington Steel, based in Columbus, Ohio, is one of North America’s largest metals processors with 37 facilities in seven US states and ten countries. The company specialises in carbon flat‑rolled steel, electrical steel laminations and tailor‑welded solutions, supporting automotive, energy and industrial markets.

Kloeckner, headquartered in Duisburg, Germany, is a major producer‑independent steel and metal distributor with a network of about 110 service and warehouse sites across North America and within the EU, Germany, Austria and Switzerland.

Both companies serve thousands of customers and each employs about 6,000 people. An acquisition integration plan and its effect on the workforce has not yet been established.

Renault has started using ArcelorMittal’s low-carbon emission steel in three of its electric vehicle models, Kallanish learns from the steelmaker.

Deliveries of the steel grade include five hot-stamped structural parts used on the Renault 5 E-Tech, the Alpine A290 and the Renault 4 E-Tech. The parts are fabricated at the Douai plant, in Northern France, with the Renault 5 and Alpine A290 assembled at Renault’s Ampère plant in Douai and the Renault 4 assembled at the Ampère plant in Maubeuge, the steelmaker says in a note.

The automotive producer has been using standard Usibor 1500 steel for body structural components for its high tensile strength and weight savings of up to 40% compared to cold-stamped steel. The XCarb version retains the same mechanical properties while delivering a significantly lower CO2 footprint via the use of an electric arc furnace (EAF) and 75% recycled scrap with 100% renewable electricity.

The validation of XCarb grades by Renault is part of a broader collaboration with ArcelorMittal to qualify low-carbon steel grades across the carmaker’s supply chain, a joint note says.

The use of the low-carbon emissions steel was first explored as part of the Renault Emblème concept car, unveiled in early 2025, a collaborative innovation project with ArcelorMittal showcasing how advanced steel solutions could combine safety, lightweighting and low-carbon production.

Several solutions developed for the Emblème project are now moving into serial production, with multiple parts using reduced carbon emission materials entering the manufacturing line.

In 2023 ArcelorMittal teamed up with French automotive component maker Lisi Automotive to build components and assembly systems using Usibor with the aim of reducing carbon footprint in the vehicle manufacturing process.

Benteler group, a leading manufacturer of seamless and welded tubes, has placed an order with SMS group to upgrade its stretch-reducing mill (SRM) in Paderborn-Schloss Neuhaus, Germany, Kallanish notes.

This upgrade ensures long term system availability, improves product quality, and strengthens the plant’s competitiveness, the supplier claims.

This includes updates to crop end control (CEC), wall thickness control (WTC) modules, and the SRM technology system.

According to SMS, the new system runs in a virtualised server environment based on its real time technology.

“This significantly reduces the risk of system failure, eliminates single point hardware dependencies, and safeguards long-term maintainability with an open source operating system and database components,” it adds.

The upgrade also allowed for a redesign of the SRM motor-control strategy. The new approach reduces load peaks on the drives, minimises unnecessary load cycles, improves coordination with the downstream flying saw, and enhances process stability at higher tube speeds.

Earlier, Benteler said it is pursuing further investment at its location in Paderborn-Schloss Neuhaus. The group is lining up approximately €17 million ($20m) for the expansion of tube manufacturing at the plant in Paderborn. It is responding to rising demand for seamless and welded steel tubes, particularly from the automotive industry.

Spanish technology supplier Sarralle Group tells Kallanish it has won an order to supply a new electric arc furnace meltshop for UMB Steel’s steelworks in Romania.

“The project is part of an ambitious industrial programme aimed at establishing a modern, energy-efficient steelmaking facility aligned with the green steel and sustainable transition,” the technology company observes. “The upgrade of the existing Oțelu Roșu plant infrastructure will enable UMB Steel an uninterrupted production of 700,000 tonnes/year of bars, compact coils, and wire rod from scrap, guaranteeing minimal carbon emissions and high production efficiency.”

The equipment for the new EAF involves the so-called KR-MELT scrap vertical preheating technology developed jointly with KR Tec. This enables continuous scrap charging during furnace operation, eliminating the need to open the EAF roof. This configuration enables the complete capture of fumes and cold dust, significantly improving environmental performance.

The supply also includes new ladle furnaces and a vacuum degasser, combined with Sarralle’s Bluesky Plant high-capacity fume extraction system.

The EAF mill has been out of action since 2012, when it was known as Mechel Ductil Steel Oțelu Roșu under its former Russian owner.

Dorinel Umbrărescu’s construction conglomerate, UMB group, acquired the Oțelu Roșu steel plant in late 2024. It also recently agreed to purchase the Romania-based Hunedoara steelworks from ArcelorMittal (see Kallanish passim).

Trading was still subdued in European domestic markets for steel hot-rolled coil on Monday March 30 with neither sellers nor buyers under pressure to book new volumes.

Mills were said to have almost sold out their material scheduled for delivery in May, and to be well booked for June deliveries. Meanwhile, buyers preferred to avoid overstocking in the current uncertain market conditions and with Easter holidays approaching.

A market source from Northern Europe reported that, in the sheet steel sector, there was still a lot of May-delivery material available for sale, which was affecting coil business.

Offers of May- and June-delivery material in the region were reported within the wide range of €700-750 ($803-860) per tonne ex-works.

Nevertheless, no fresh bookings were heard on Monday with estimates of workable prices varying within the range of €700-730 per tonne ex-works.

Fastmarkets’ daily steel hot-rolled coil index, domestic, exw Northern Europe, was calculated at €718.75 ($8274.02) per tonne on March 30, up by €1.25 per tonne from €717.50 March 27.

The index was up by €1.25 per tonne week on week and up by €32.68 per tonne rfom the last day of February.

Preliminary offers for July-delivery HRC in Northern Europe were heard in the range of €750-780 per tonne ex-works.

The rise in the domestic prices was expected, considering the rises in import prices as well as the introduction of a new tighter safeguard system in July.

The Italian market was also quiet on March 30 with no new transactions heard.

“The market is extremely quiet. If any deals are made, their volume is very small,” a local source said. “People are afraid of the negative economic outlook amid a tense global geopolitical situation, so they do not want to exaggerate with new volumes.”

Market participants said that workable prices for June-delivery coil, and for what was left of May allocations, still varied within the range of €690-700 per tonne ex-works. This was was reflected in the steel HRC index, domestic, exw Italy, which was €695.00 per tonne on Monday, down by €2.50 per tonne day on day.

The index was down by €0.63 per tonne week on week but up by €24.37 per tonne compared with February 27.

Polish domestic rebar and wire rod prices increased in the week to Friday March 27, supported by growing production costs and higher offer levels ahead of the Easter break.

The US-Iran conflict has caused spikes in global oil and gas prices, which have in turn rump up production costs for producers across Europe as mills deal with high energy prices.

Meanwhile, disruption to international trade routes, paired with the introduction of the EU’s Carbon Border Adjustment Mechanism (CBAM), has limited volumes of imported materials into Europe.

Offers for rebar were heard at 2,720 zloty ($730) per tonne CPT during the assessment period, with estimates of workable levels heard around 2,700 zloty per tonne CPT.

According to sources, the growth in offer levels for rebar matches mills’ increase in production cost, while also noting that prices should soon stabilize at these higher levels amid distributors holding sufficient inventory coverage.

“Most of the big distributors are already stocked up, so April will be weaker in terms of purchases from mills,” a distributor source said.

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

Prices for domestic wire rod, drawing quality, also grew in the week to Friday amid reports of producers aiming for higher offer levels.

Local producers were heard to be targeting higher offers for domestic wire rod for end of April delivery. However, sources also noted that real demand levels in Poland remain low.

Fastmarkets’ weekly price assessment for steel wire rod (drawing quality), domestic, delivered Poland was 2,815-3,000 zloty per tonne on Friday, rising from 2,730-2,815 zloty per tonne the previous week.

The new range reflects the latest indications in a low-liquidity market, with the lower end assessed on workable value and the upper end estimated to offers heard at 3,000 zloty per tonne, delivered.

SteelOrbis talked to Tolga Kısacıkoğlu, chairman of the Board of Galva Metal, about the role of steel service centers in the industry.

How do steel service centers play a strategic role between the producer and the end consumer?

Steel service centers are not merely an “intermediary” between the producer and the end consumer; they serve as a strategic solution partner managing the efficiency, speed and sustainability of the supply chain. First and foremost, as Galva Metal, we bridge the scale gap between integrated facilities producing large volumes and industrialists making smaller, more flexible purchases. We don’t just hold inventory; we perform value-added processing. Through operations such as slitting, cutting to length, packaging, quality control and logistics planning, we prepare the product to be directly integrated into the customer’s production line. This provides both operational efficiency and cost advantages for the end consumer. In summary, steel service centers act as a buffer mechanism in the supply chain. They manage the differences in time, quantity and product specifications between production and consumption; they balance financial and operational risks. Under today’s conditions, this role has evolved far beyond the traditional trading function, transforming into a strategic partnership.

What is the state of demand and competition in the Turkish domestic market?

Domestic demand continues to follow a cautious and fragile trajectory in the first half of 2026. The slowdown in industrial production, high financing costs and businesses’ reluctance to maintain inventory are causing orders for flat steel to be shorter-term and lower in tonnage. We observe that capacity utilization rates in the automotive parts industry and white goods and general manufacturing sectors are lower compared to previous years.

How do you interpret the price trend?

Domestic demand is remaining weak in the first part of the year. The slowdown in industrial production, high financing costs and companies’ tendency to operate with low inventories are exerting downward pressure on prices. Therefore, it seems unlikely we will see a strong price increase in the short term. On the other hand, cost pressures are also preventing prices from falling sharply. Scrap, energy and financing costs remain a significant burden for producers. Although not all of these cost increases can be fully passed on to sales prices due to weak demand, a certain floor has been established.

Globally, protectionist policies and China’s export strategy will continue to be decisive factors. Restrictions in export markets can periodically lead to a shift in supply toward the domestic market and result in price pressure.

Overall, we expect a market in 2026 characterized by periodic fluctuations – rather than sudden spikes – driven by demand and cost dynamics, as it seeks to find equilibrium.

As a steel service center, what do you look for when purchasing steel sheets? What criteria, besides price, are prioritized?

While price is important in sheet metal purchases, it is not the sole determining factor. Consistency in quality and reliability of mechanical properties and surface and coating standards are critical for us, because we process the product in a way that it goes directly into the customer’s production line. Therefore, working with suppliers that produce with low error margins and consistent quality is our priority.

That said, payment terms are particularly crucial during periods of weak demand and high financing costs. Flexible payment terms, a variety of financial instruments, and business models based on mutual trust directly impact our risk management. In today’s market conditions, strong collaboration gains meaning not just through price, but also through quality, delivery discipline and payment flexibility.

EU quotas remain in place, and quota volumes are expected to decrease further in the coming period. Meanwhile, the US has raised tariffs back to 50 percent. How is this wave of protectionism generally affecting the market?

The increase in protectionist measures is forcing producers and trading firms to seek alternative markets by narrowing export channels. The tightening of EU quotas and the US’ high-tariff policy mean that significant volumes of flat products cannot enter traditional markets. This is creating a shift toward more intense competition in regions such as the Middle East and North Africa.

However, every market has a limited absorption capacity. As supply shifts toward alternative markets, price competition intensifies and margins narrow. During periods when exports are curtailed, a portion of this volume returns to the domestic market. In an environment where domestic demand is already weak, increased supply creates serious pressure on prices and can disrupt market balance.

As a steel service center, we view this situation as a process that requires careful management and poses significant risks. While rising domestic supply may seem to create a short-term price advantage, unsustainable price levels could lead to capacity reductions on the production side and supply instability in the long term.

What changes does the concept of green steel bring for steel service centers?

The concept of green steel is not merely an environmental issue for steel service centers, it also signifies a commercial and operational transformation. Customers are now questioning not only price and quality but also the product’s carbon footprint. This requires steel service centers to assume new responsibilities across various areas, from supplier selection to inventory management, and from traceability infrastructure to reporting.

However, the most critical issue here is the uncertainty surrounding the Carbon Border Adjustment Mechanism (CBAM) process. Although the reporting period under CBAM, implemented by the European Union, has begun, how carbon costs will be priced, which emission values will be used as a basis, and the implementation details during the transition period remain unclear. This uncertainty raises serious concerns regarding pricing and long-term contract management for both manufacturers and service centers.

Since service centers act as intermediaries, they must anticipate how and to what extent they will pass on the carbon costs from manufacturers to the end customer. However, making a reliable cost projection is quite difficult until the final regulatory framework is clarified.

In your opinion, what is the most urgent structural problem the sector needs to address?

In our view, the sector’s most urgent structural issue is the imbalance resulting from exports shrinking due to various quotas and protective measures while imports remain at high levels.

Quotas and trade restrictions implemented in many markets, particularly the European Union, are severely limiting the export capacity of Turkish steel producers. While producers struggle with exports, domestic demand remains weak. Despite this, the continued strong inflow of imports – especially in certain product groups – is creating a supply surplus and price pressure in the domestic market.

This situation is squeezing domestic producers from both sides: market loss abroad and intense price competition at home. Unsustainable price levels are eroding profitability, dampening investment appetite, and negatively impacting capacity utilization rates in the long term.

As steel service centers, we are also directly feeling this imbalance. For a healthy market, export channels must become more predictable, and imports must be balanced within the framework of fair competition. Otherwise, the sector will be condemned to a structure that operates under constant pressure and struggles to make long-term plans.

Author: SteelOrbis Editorial Team

steelorbis.com