Year: 2026

Germany’s mechanical engineering and plant-building sector has had a disappointing start to the year, its association VDMA says in a statement seen by Kallanish. 

The machinery and equipment manufacturing companies organised in VDMA in January have reported an order intake 6% below that of January 2025, including adjustment for price changes.

Domestic orders were 8% below January 2025, while orders from abroad were down by 5% during the month. Demand from eurozone countries (-8%) was even weaker than business with non-eurozone countries (-4%), VDMA notes.

In the less volatile three-month period from November 2025 to January 2026, the companies recorded a total decline in orders of 2% in real terms. Domestic orders fell by 4%, foreign orders by 1%. Orders from eurozone countries fell by 4%, while orders from non-eurozone countries stagnated.

“Some sentiment indicators had recently pointed upwards, so the decline in orders in January is a surprisingly weak start to 2026,” VDMA chief economist Johannes Gernandt says. “So far, it is only a monthly figure; we will have to wait and see how orders develop in the coming months,” he adds.

In a sentiment survey in January, 30% of companies were optimistic about the next six months, compared with 21% polled in October. Only 9% expect the situation to deteriorate. VDMA at the time was therefore encouraged to forecast a slight year-on-year increase in production of 1% in real terms for 2026.

However, the Middle East has been one of the larger regions to which German machinery exports increased in 2025. Of all countries, the two main markets for German machinery makers, Saudi Arabia and the United Arab Emirates, are the most affected targets of recent Iranian missile and drone attacks. Both countries taken together account for export revenue of €4 billion ($4.6 billion).

Calls are growing for the Industrial Accelerator Act (IAA) to create a mandatory definition for low-emission steel, Kallanish learns from climate and standards groups.

While SteelZero welcomes the EU’s push to “create real markets for low‑carbon steel,” it says the act falls short where it matters most, “setting a clear, mandatory EU definition of what counts as low‑carbon steel”.

“Requiring low‑carbon steel in public procurement is powerful, but only if all producers are held to the same science‑based standard,” comments Andrew Forth, head of policy and advocacy at Climate Group.

“The EU must now move quickly to introduce a trusted, mandatory green steel label to ensure investment flows to genuinely cleaner production,” he adds.

Steel industry stakeholders are increasingly using the term “low-carbon steel” to refer to steel with low embedded carbon emissions during production, rather than the traditional meaning of steel with a low carbon content, ranging from 0.05-0.25% by weight.

A statement by Global Steel Climate Council welcomes “the European Commission’s efforts to harmonise the definition of low-carbon steel”.

It says that establishing a clear and consistent framework will send a strong signal to the entire industry and its customers, helping to accelerate investment, innovation, and the large-scale deployment of low-emission production technologies.

“Clear, comparable information on the carbon footprint of steel products would enable customers to make more informed purchasing decisions.”

GSCC adds it looks forward to collaborating with the Commission on the forthcoming Delegated Acts under ESPR that will define low-emission steel criteria. It adds this is accomplished through a transparent, technology-neutral approach that focuses directly on climate impact and emissions reduction, applying consistent standards across all production routes.

These calls echo warnings by the European Environmental Bureau (EEB) that the IAA lacks the clear definitions and clarity needed to drive the energy transition.

Meanwhile, Annie Heaton, ceo of ResponsibleSteel, tells Kallanish the IAA enshrines a number of principles that should be welcomed: the use of public procurement as a lever to drive steel decarbonisation; product labelling to signal clarity in the market; acknowledging that recycling alone will not drive the industry to decarbonise; and recognising that definitions of low-emission steel should apply a scrap-variable approach.

“However, the application of every one of these principles in the IAA is weaker than anticipated, so the onus is now on the EU Institutions to drive the potential of what has been proposed here to the full, and at speed, so that it can drive certainty into the investments needed to transform the industry,” she adds.

Following the European Commission’s official introduction of the Industrial Accelerator Act (IAA), the UK manufacturers’ organization Make UK has assessed the potential implications of the legislation for future trade between the United Kingdom and the European Union.

The proposal will now undergo scrutiny by the European Parliament and the Council of the European Union, which have the authority to amend, approve or reject elements of the draft legislation. The regulation can only advance once the European Commission, Parliament and Council agree on a common final text.

The European Commission has announced that it is preparing to publish the first official price for Carbon Border Adjustment Mechanism (CBAM) certificates.

Importers of CBAM-covered goods will be required to purchase CBAM certificates starting in February 2027 to cover imports made during 2026. 

Quarterly pricing system for 2026

For 2026, the price of CBAM certificates will be calculated on a quarterly basis as the average auction clearing price of EU ETS allowances during the respective quarter. This methodology is intended to ensure that the CBAM carbon price reflects the actual carbon cost in the EU market.

Beginning in 2027, the Commission will switch to a weekly pricing mechanism. However, the quarterly system will apply during 2026 to provide a transparent transition toward the financial phase of CBAM.

Publication schedule for CBAM certificate prices

Each quarterly price will be calculated during the first calendar week following the end of the quarter and will be published on the first working day of the following week. The scheduled publication dates for the 2026 CBAM certificate prices are:

For transparency, the price will be published on the European Commission’s CBAM webpage and within the CBAM Registry.

The European Commission has also launched a tender process for the Common Central Platform that will manage the sale and repurchase of CBAM certificates. Economic operators interested in participating in the platform have been invited to submit bids by March 20, 2026, as the EU continues preparations for the full implementation of the CBAM mechanism.

Ralph Calmes has been appointed Chief Commercial Officer at Tata Steel UK, effective January 2026. In this role, he is responsible for leading the company’s commercial strategy and strengthening relationships with customers across its key markets.

Since joining the company, Calmes has been visiting Tata Steel UK’s sites and engaging with customers to better understand market dynamics and the needs of downstream industries. He brings experience from several industrial sectors, including automotive, mining and specialty chemicals.

His appointment comes at a time when Tata Steel UK is undergoing a major transformation, including its transition towards electric arc furnace (EAF) steelmaking as part of its strategy to become a more sustainable and competitive steel producer.

Calmes succeeds Anil Jhanji, who previously held the position and supported the transition during the handover period.

Source: tatasteeluk.com

Transaction prices for domestic coil in Europe increased in the week to 6 March as buying activity recovered, fuelled by potential shortage fears. 

European buyers, both distributors and end users, have been concerned that the conflict in the Middle East, which has already disrupted some of the traditional supply routes, could result in shortages  in the EU. Consequently, they were focused on domestic purchases either from the mills or from distributors to build stocks.

Multiple market sources have drawn comparisons between the current situation and the market developments in either 2020 during the COVID-19 pandemic or in 2022 following Russia’s attack on Ukraine. In both cases in the past, shortage fears drove prices to record-high levels and triggered excessive restocking, which was then followed by a price drop and a slump in both real and apparent demand.

The current circumstances, however, are unlikely to follow a similar radical scenario, market sources believe. While a clear uptrend has settled in the European coil market due to delays in import deliveries and rising energy costs, the steelmakers have been taking their time to evaluate the situation.

Rumours that circulated in the market earlier this week that coil producers had withdrawn their offers were unfounded. European steelmakers continued to trade steel coil with selected buyers, as they have sufficient order books and are expected to increase offers soon.

“The steelmakers are cherry-picking deals they want to make and customers they are ready to give offers to,” a Northwest European service center said.

The mills are expected to increase official offers soon, as the current transaction prices have already moved close to their initial target prices in Northwest Europe.

“Last week the sentiment turned more pessimistic due lack of demand improvement and unwillingness of the end users to accept the higher prices. But now the end users are booking volumes, so are distributors, as they think that the market might repeat the situation of either 2020 or 2022,” a mill source said. “The mills are holding back now, and they are trying to figure out the price they should start asking from next week.”

The anticipated offer rise, however, is unlikely to be drastic, multiple sources said. The steelmakers are expected to use the current sentiment to increase prices, but are unlikely to inflate them to the point that it paralyzes the supply chains and scares away buyers, according to market participants.

The domestic supply is expected to be enough to compensate for any missing import volumes, taking into account stable real demand and some planned blast furnace (BF) restarts, including in Poland and Italy. And import supply, although delayed, is expected to resume at a normal pace, sources said.

“So far we do not see big disruptions of deliveries although there are delays for import for sure and there are no major price hikes,” an Italian service center said.

In Northwest Europe, deals for domestic hot-rolled coil (HRC) have been settled at EUR690-710/t ex-works, with the majority of the indications reported at EUR700-710/t ex-works. The deals were settled for smaller lots of material of a few hundred tonnes per lot.

In Italy, domestic HRC transactions were reported at EUR680-700/t ex-works.

In Northwest Europe, prices for both cold-rolled coil and hot-dipped galvanized coil have been heard at EUR790-830/t ex-works

Import offers limited

The number of import offers in Europe has been scarce as suppliers from Asia, which previously went through the Suez Canal, will now have to be rerouted via the Cape of Good Hope, resulting in higher freight costs and longer lead times. In fact, the first ships have already used the alternative route.

While delays in the delivery of imported coil in the EU are unlikely to exceed one month, buyers have grown concerned that the delivery disruptions would result in higher duties. The timing of the potential delays is critical, as the EU’s new quota system is expected to come into force from July this year.

Under the new quota system, a 47% reduction in volume and a doubling of duties to 50% have been proposed. Lack of details on the country-specific quotas or any caps in the global quotas has made European importers extremely cautious on steel imports arriving in the third quarter. The delivery delays greatly increase the likelihood of exceeding the new tighter quotas.

Turkey had reportedly sold significant HRC volumes to the EU and now has increased the prices. While deliveries from Turkey were not impacted by the geopolitical situation, importing larger volumes could result in exceeding the quota, sources said.

HRC offers from Turkey have been heard at EUR540-550/t CIF South Europe, including anti-dumping duties. Exporters from Algeria and Thailand have been offering HRC to Italy at EUR590/t CIF and at EUR570/t CIF, respectively.

HRC offers were reported at EUR605-640/t DDP Italian ports, including CBAM duties.

The weaker euro against the US dollar has also made imports more expensive.

Green Steel

Green HRC premia were rangebound on week as market participants dedicated their attention to mitigating potential effects of the Middle Eastern conflict. Spot premia for low-carbon EAF HRC are stable at around EUR80/t, according to McCloskey’s sources, while ultra-low-carbon or project-destined material trades can secure triple-digit premiums.

That said, there were significant developments in the low-carbon segment this week – though not necessarily of a positive nature – as the European Commission’s publication of the significantly delayed Industrial Accelerator Act confirmed that the EU’s first official green steel definition had been cut from the legislative proposal.

Additionally, while no substantive provisions relating to the low-carbon label have survived to the IAA’s official publication, references in the act’s explanatory recitals to the new standard suggest that the controversial ‘sliding scale’, will only be applied to flat steel products.

Instead, the ‘voluntary low-carbon label’ for steel – one of the Commission’s core commitments in last year’s Steel and Metals Action Plan (SMAP) – will now be pursued under the Ecodesign for Sustainable Products Regulation (ESPR). Steel-related delegated acts are scheduled for later this year.

European heavy plate prices increased in the week to 6 March. Re-rollers have withdrawn previous offers and are preparing to increase prices.

In Italy, the latest deals for heavy plate have been settled at EUR720-750/t ex-works, up by around EUR15/t on week.

European re-rollers rely on imported slab, mainly from Asia. The geopolitical situation in the Middle East caused deliveries from Asia to Europe to be rerouted from the Suez Canal to the Cape of Good Hope, adding at least two weeks to shipments already on their way. Freight rates also increased and might move further up.

Import offers for slab from Asia have increased due to the situation, with fresh offers reported at $550-580/t CFR Italy. Contributing to higher costs, the euro’s decline against the US dollar has made slab imports more costly.

In addition, market sources were concerned that due to an absence of slab exports from Iran to Asia, global slab supply will become squeezed as local mills will focus on trading within the region. After slab supply from the Black Sea decreased, European re-rollers have been relying on Asian feedstock. This might push slab prices further up, market sources believe.

The rise of energy prices in the EU also supported the bullish sentiment of the European steelmakers.

“The higher gas prices hit re-rollers hard, as that is critical for slab re-heating. And due to rerouting of slab deliveries there will be delays, it is unclear how severe they would be. This can cause delays in heavy plate deliveries from re-rollers and this will fuel the bullish sentiment,” a mill source said.

European re-rollers already had been exposed to higher costs due to the introduction of the Carbon Border Adjustment Mechanism (CBAM) from 2026. Re-rollers estimated CBAM duties for imported slab at EUR30-80/t based on actual emission values. But until exporters obtain the certifications – in 2027 for imports during 2026 – European re-rollers risk that the duties would be calculated based on default values resulting in substantially higher costs.

Heavy plate offers in Germany have also increased to EUR770-800/t ex-works.