Year: 2026

ArcelorMittal plans to restart blast furnace No.1 (BF No.1) at its Fos-sur-Mer plant in southern France in June, bringing the number of operating units at the site to two, the company said.

BF No.1 is currently undergoing maintenance aimed at extending its operational life. The plant’s other unit, BF No.2, was restarted in December 2025 after an almost three-month stoppage following a fire.

The decision to return to dual blast furnace operations reflects expectations that EU protective measures, notably import restrictions and the Carbon Border Adjustment Mechanism (CBAM), will be implemented effectively to support the domestic steel industry, the company said.

The definitive phase of CBAM began on 1 January, while new EU tariff-rate quotas are expected to replace existing safeguard measures, which are set to expire on 30 June 2026.

Earlier this month, ArcelorMittal also said it had begun preparations to restart BF No.3 at its Dąbrowa Górnicza steelworks in Poland.

Indian steelmaker Jindal Steel has expressed interest in acquiring troubled Italian flat steel producer Acciaierie d’Italia (ADI), Minister of Enterprise and Made in Italy, Adolfo Urso, told the Senate on 12 March.

“Indian Jindal Group, a leading global steelmaker, submitted an expression of interest last night for the entire steel complex with an ambitious industrial plan, guaranteeing the full decarbonisation process,” Urso said.

ADI has two potential buyers now – Jindal Steel and Flacks Group, a United States-based investment firm focused on the turnaround of distressed businesses.

Market sources suggested that the Italian authorities will review both proposals by 15 April.

Jindal Steel was previously in the running to acquire ADI, but withdrew from the tender in September 2025 as it was unable to reach agreement with the Italian authorities, particularly regarding the plant’s gas supply. The company submitted a non-binding offer for German Thyssenkrupp’s Steel Europe division after abandoning the race for ADI. In the week to 13 March, German media reported that the potential deal between Thyssenkrupp and Jindal Steel could collapse as the parties have been unable to agree on some key issues.

Flacks Group told McCloskey earlier this month that it was considering the acquisition of Thyssenkrupp if Jindal Steel decided to step away from the purchase.

In February, ADI temporarily idled blast furnace (BF) No. 4 for maintenance until the end of April. BF No. 2 was restarted on 10 February. The steelmaker plans to double steel production to 4 mt/y by end April 2026, and to continue operating two furnaces. However, a recent court ruling ordering ADI to suspend production at the Taranto plant from 24 August on health grounds could disrupt those plans.

According to the first quarter report of the 2026-2027 economic and steel market outlook published by the European Steel Association (EUROFER), steel demand in the European Union has begun to show signs of stabilization following three years of contraction. However, the report stated that the recovery will be limited and consumption levels will remain well below pre-pandemic levels in the coming years.

According to the report, the industrial outlook for 2025 has improved slightly compared to previous expectations, and steel demand showed signs of stabilization, particularly in the second half of the year. However, it was stated that this improvement largely stems from comparisons with the very low volumes recorded in the second half of 2024. In this framework, steel consumption is expected to increase by 2.4% in 2025, instead of the -0.2% decline projected in the previous outlook. It was noted that this increase will occur thanks to stronger-than-expected demand in some national markets and will partially offset the impact of trade disruptions, including US customs duties.

On the supply side, EU crude steel production continued its decline. According to the report, production in 2025 fell to 125.8 million tonnes from the 130 million tonnes level in 2024, decreasing by approximately 3% on an annual basis. EUROFER emphasized that this situation points to the ongoing contraction in the European steel sector and permanently low capacity utilization due to weak demand and increasing import pressure.

According to data on the EU steel market, apparent steel consumption recovered in the third quarter of 2025 following declines in the previous two quarters. During this period, consumption reached 32 million tonnes, increasing by 4.6% annually. Domestic deliveries followed a similar trend, showing a 3.4% increase in the third quarter after a -1.6% decline in the previous quarter. In contrast, domestic deliveries had experienced declines in previous years due to weak demand, falling by -4.6% in 2023 and -2.8% in 2024.

A remarkable increase was observed on the import side. Steel imports into the EU, including semi-finished products, increased by 10% quarter-on-quarter in the third quarter of 2025. Consequently, the share of imports in the EU’s apparent steel consumption rose from 25% in the previous quarter to a record level of 29%. In the entirety of 2024, the share of imports had been 27%.

Developments in steel-using sectors were also included in the report. The Steel Weighted Industrial Production (SWIP) index recorded an increase of 1.8% in the third quarter of 2025 after six quarters of decline. Nevertheless, the index continued to reflect the impact of weakness in the automotive sector, as well as mechanical engineering, household appliances, and metalware sectors, which are more exposed to global trade and external shocks.

The report stated that the construction sector has given limited recovery signals since the second quarter of 2025. In the third quarter, a partial recovery was seen in manufacturing activities and steel-using sector production, thanks to modest improvements in industrial indicators and the delayed effects of low interest rates.

According to EUROFER, the SWIP index decreased by -3.5% in 2024, despite showing resilience in the previous two years. The decline in construction and automotive production was decisive in this fall. While a more limited contraction (-0.3%) is expected in 2025 due to increasing uncertainties, declines of -4.3% and -0.8% are projected for automotive and mechanical engineering production, respectively.

In the medium term, a limited recovery is expected. SWIP growth is projected to rise to 1.9% in 2026 and reach 2.2% in 2027. The report stated that this increase will be supported particularly by growth in the construction sector and the recovery in automotive production.

Steel heavy plate domestic prices increased in Northern and Southern Europe in the week to Thursday March 12, with some re-rollers already booked until June, market participants told Fastmarkets on Thursday.
They linked the rise to the continuing conflict involving Iran, Israel and the US, which began on February 28 and has pushed up steel slab feedstock and natural gas prices.

Fastmarkets’ weekly price assessment for steel slab import, cif Italy was $550-560 per tonne on Thursday, widening upward by $37 from $523-550 per tonne a week earlier.

Southern Europe
Local deals for steel heavy plate in Italy were reported at €700-770 ($803-884) per tonne ex-works. The range is wide because market sources said buyers were trying to secure deals for April at lower prices, but said the latest levels were starting at €750.

Suppliers stepped out of the market on March 5 because of uncertainty over the conflict’s effect on plate production costs and returned on Wednesday, according to market participants.

“We have closed almost all of April [bookings] last week. Before we have stopped sales, most stockists were on the market trying to secure orders at previous prices. The same strong order intake was reported by competitors,” a producer source told Fastmarkets on Thursday, adding that some plate re-rollers were sold out until May or June.

They said €750 increasingly seemed like the new minimum local price, compared with €700-710 a couple of weeks ago, noting that the overall effect on production costs over the past two weeks has been more than €40 per tonne.

Offers for domestic plate in Italy were at €720-780 per tonne ex-works in the week to March 12, increasing after re-rollers returned to the market on Wednesday, a trader said.

A second trader source linked the rise mainly to the conflict in Iran and reduced plate imports, saying demand was still not good. The producer, however, told Fastmarkets they had been seeing stronger demand for plate recently.

Fastmarkets’ weekly price assessment for steel domestic plate 8-40mm, exw Southern Europe was €730-770 ($706-729) per tonne on Thursday, widening upward by €70 from €700-730 a week earlier.

A producer reported plate imports from South Korea to Spain at €664 per tonne CFR two weeks ago, with offers from Japanese suppliers at similar levels. Other market sources did not report new deals, but said there was plate available in ports.

Plate import activity to Europe has been limited recently because of Carbon Border Adjustment Mechanism (CBAM)-related costs, which vary by origin and leave buyers uncertain about final pricing.

Fastmarkets’ weekly price assessment for steel plate (8-40mm) import, cfr main port Southern Europe was €650-664 per tonne on Thursday, widening upward by €17 from €647-650 per tonne a week earlier.

Northern Europe
Offers for domestic steel plate in Northern Europe were reported at €720-790 per tonne ex-works, but trading activity was muted.

“Market participants are now waiting for next week to see the new price levels,” the producer said.

Fastmarkets’ weekly price assessment for steel domestic plate 8-40mm, exw Northern Europe was €740-770 per tonne on Thursday, narrowing upward by €20 from €720-770 per tonne a week earlier.

Regarding imports, market sources said Indian suppliers were offering plate at €625-629 per tonne CFR Antwerp, but nothing was heard from Indonesia or South Korea and no new deals were reported.

Fastmarkets’ weekly price assessment for steel plate (8-40mm) import, cfr main port Northern Europe was €609-650 per tonne on Thursday, unchanged from February 5.

Local hot-rolled coil prices in Europe extended gains on Friday March 13 amid a mix of factors such as limited supply, increased costs as well as import curbs.
In Northern Europe offers from integrated mills and re-rollers for May and in some cases.

June-delivery coils varied within the range of €700-735 ($807.34-841.94) per tonne ex-works versus €690-735 per tonne ex-works a day earlier.

Market sources reported market leaders achieved €720-730 per tonne in deals for minor tonnages amid limited supply.

Meanwhile, a source from Germany said that several local supplier continued to stay out of the market due to the recent rise in energy and fuel costs triggered by the aftermaths of the US-Iran conflict.

The same source reported some improvement in buying in the recent days caused by expectations of further price rises.

Fastmarkets’ daily steel hot-rolled coil index domestic, exw Northern Europe was calculated at €713.57 ($822.99) per tonne on Friday, up by €6.38 per tonne from €707.19 per tonne on March 12.

The index was up by €13.57 per tonne week on week and by €57.74 per tonne month on month.

Meanwhile, in Southern Europe, Fastmarkets calculated its daily steel hot-rolled coil index domestic, exw Italy at €692.50 per tonne ex-works on March 13, stable day on day.

The index was up by €11.67 per tonne week on week and by €45.00 per tonne month on month.

Offers from local suppliers came at €695-700 per tonne ex-works, while buyers estimated the market levels at €680-690 per tonne ex-works.

Import continued to be restricted by a number of factors such as higher costs which followed the implementation of the Carbon Border Adjustment Mechanism (CBAM) earlier this year, concerns over reduced import availability in the second half of the year due to new safeguards as well as increased transportation costs and timing, which followed the US-Iran conflict.

Energy-intensive industries in Europe have urged the European Commission to prioritize competitive electricity prices and investment support in the upcoming EU Electrification Action Plan (EAP), warning that persistently high energy costs threaten industrial competitiveness and decarbonization efforts.

In a joint position paper, industry groups representing sectors such as steel, chemicals, metals, cement and paper said the EU’s economic and energy outlook is putting industrial electrification investments at serious risk unless electricity prices are brought down.

The industry groups, including EUROFER and European Metals, said the Electrification Action Plan should first focus on restoring competitive electricity prices for industrial consumers. According to the position paper, reducing electricity costs is essential for maintaining Europe’s industrial base while pursuing climate neutrality.

Accelerating electrification and energy integration

In addition to lowering power costs, the industry groups recommend several structural measures, including creating better conditions for industrial electrification investments, accelerating development of the EU Single Market for Energy, expanding cross-border electricity interconnections, and increasing system flexibility through renewable and low-carbon energy sources.

They argue that improved flexibility and stronger cross-border electricity trading could help reduce energy price disparities between EU member states and improve overall system efficiency.

Industry stakeholders warn that Europe risks losing competitiveness globally if electricity prices remain structurally higher than in other regions. They emphasize that the Electrification Action Plan should support both climate objectives and industrial competitiveness, ensuring that energy-intensive sectors can continue operating while transitioning toward lower-carbon production technologies.

Author: SteelOrbis Editorial Team

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According to Paris-based think tank the Institute for Climate Economics (I4CE), proposals to weaken the EU’s carbon market rules would represent a strategic mistake.

Economists Benoît Leguet and Jean Pisani-Ferry argue that Europe should instead strengthen the EU Emissions Trading System (ETS) in order to support industrial competitiveness, accelerate technological innovation and maintain global leadership in low-carbon technologies.

EU carbon market central to climate policy

The EU ETS has placed a cap on emissions from European industry since 2005. The system currently covers approximately 40 percent of the European Union’s greenhouse gas emissions, including electricity generation, energy-intensive industries and intra-European aviation.

Under the ETS framework, companies must hold emission allowances for their carbon output. These allowances are tradable, creating a carbon market that provides financial incentives for reducing emissions. Following earlier adjustments, the carbon price has stabilized at roughly €60-€80/mt of carbon in 2025.

System entering new phase from 2026

The carbon market is now entering a new phase that has raised concerns among some industrial producers.

Two major policy changes are scheduled to begin in 2026. First, free emission allowances for energy-intensive industries will start declining more rapidly before being completely phased out by 2034, increasing carbon costs for producers. Second, the EU has introduced the Carbon Border Adjustment Mechanism (CBAM) to prevent carbon leakage. However, the current CBAM framework does not fully address competitiveness concerns faced by European exporters.

Complementary policies needed rather than ETS weakening

According to the I4CE analysis, these challenges should not lead to weakening the ETS itself. Instead, policymakers should introduce complementary policies that protect industry while maintaining the integrity of the carbon market.

One proposed solution is strengthening the CBAM framework or extending it to downstream sectors in order to better address carbon leakage along industrial supply chains without weakening ETS.

Electrification and renewables seen as long-term advantage

The think tank also emphasized that Europe’s long-term industrial competitiveness depends on reducing reliance on imported fossil fuels and accelerating the deployment of low-carbon technologies.

Greater electrification of industrial processes, combined with expanded renewable energy capacity and declining energy storage costs, could create structural advantages for European manufacturers. France, for example, is considered well positioned due to its relatively large supply of low-carbon electricity and biomass resources.

Policy priorities for the next ETS phase

The authors identified several policy priorities for strengthening the system while supporting industry. These include maintaining the planned phase-out of free allowances to provide long-term regulatory visibility, using ETS auction revenues more strategically to fund industrial decarbonisation projects and expanding CBAM coverage to protect European supply chains.

They also warned against introducing a carbon price cap within the ETS. Artificially lowering the price of carbon could undermine investment incentives for clean technologies and weaken the economic case for decarbonisation projects. Instead, the economists suggested that a carbon price floor could provide greater predictability for industry while preserving incentives to reduce emissions.

Author: SteelOrbis Editorial Team

steelorbis.com

According to the Spanish steelmakers association UNESID, in January this year Spain’s steel production totaled 789,000 mt, rising by 15.0 percent month on month and dropping by 24.0 percent year on year.

In the given month, the Spanish steel industry recycled 695,000 mt of scrap to be used for new steel products, up by 20.9 percent compared to the previous month and down by 13.0 percent year on year.