German construction sees some recovery in H1
Permissions for residential construction in Germany have gained considerable strength in the first half of the year, but the industry admonishes that this does not mean a quick revival of activity.
The total of new permissions for residential units granted from January through June, at 126,000, was 15% above the figure of the first half of 2025, according to the federal statistics office, Destatis. This was the strongest increase since 2016, the office notes. However, it also cautions that the current increase comes from a relatively low level last year. By comparison, the total in H1 2016 was 182,000 units.
Despite the apparent upsurge of orders, construction association Hauptverband der Deutschen Bauindustrie cautions that this does not automatically translate into orders, which are still sluggish. High interest rates and high costs for building “keep holding residential construction in a stranglehold,” it says.
According to a survey by economic institute ifo, more than one third of companies in the sector anticipate a negative development in the second half of the year. In the first five months of the year, the industry’s order intake dipped by 2%, Kallanish hears.
The association’s manager, Oliver Müller, calls on the federal government to address the crisis in residential construction, which he says has been lasting for five years now. Müller says political institutions “need to pave a way for easy construction in their guidelines and abolish unnecessary requirements”.
In an earlier statement, Hauptverband referred to a poll among the general public, which showed that the shortage of apartments goes together with concern over the deficiencies in Germany’s transport infrastructure.
Rhine Group: Draghi and European business leaders launch lobby group to revive competitiveness agenda
A group of 55 high-level European business leaders, academics and media personalities launched the ‘Rhine Group’ on 24 August to develop solutions to Europe’s competitiveness challenges, building on the 2024 report of former European Central Bank President Mario Draghi.
Draghi, Stripe CEO Patrick Collison — whose company provides online payments — and the group’s executive director, Spanish economist Luis Garicano, will lead the group, which will hold its inaugural session from 20–23 September.
French and German members make up the largest national groups, with twelve members each, followed by seven Italians, six Britons and five Spaniards.
Its members include former French Finance Minister Bruno Le Maire, former Estonian President Toomas Hendrik Ilves, Dutch scientist and former minister Robbert Dijkgraaf, and French Nobel laureate economist Philippe Aghion.
The editors of the Financial Times, the Economist, and the publisher of Le Monde are also members.
The group’s founders argue that Europe is now facing an even more difficult situation than when Draghi’s report was released.
“In every emerging technology that will shape the coming decades, Europe is weak,” the founders wrote.
Commission issues summer guidance for CBAM verifiers, operators
The European Commission published guidelines on 24 August for the officials tasked with ensuring the carbon border adjustment mechanism (CBAM) functions as intended.
The guidance is for CBAM verifiers, who ensure that the declarations made by producers subject to the levy follow the rules.
It also provides information for the national bodies responsible for accrediting and supervising these verifiers.
The Commission published an overview of these accreditation bodies, and of their remits, on 24 July.
On 21 August, the EU executive shared a user’s manual for the register through which CBAM declarations must be submitted. On 14 August, it also issued a raft of documents for producers based in third countries — those directly affected by CBAM.
This included guidelines for each sector covered by the mechanism: aluminium, steel and iron, hydrogen, cement, fertilisers and electricity.
The Commission also used the summer period to publish an amended version of the default values used to determine the emissions to be attributed to goods for which no verified actual data is available (Excel version available here).
Guidance on CBAM verification and accreditation for verifiers and national accreditation bodies
State-of-play CBAM accreditation
CBAM-UMN-UI-manual-Release-3.2-Declarants-Portal-SfA-v6.00-EN
European local HRC prices ease in Northern Europe as market awaits post-summer demand recovery
Prices for domestic steel hot-rolled coil edged down slightly in Northern Europe on lower indications from buyers, while the Italian market was still largely quiet and slow, sources told Fastmarkets on Friday August 21.
In Northern Europe, a buyer indicated workable prices within the range of €700-720 ($818-841) per tonne ex-works.
No other price points were received during the day as many market participants were still away.
For this reason, prices received on August 20 were carried over to the following day, in line with Fastmarkets methodology.
On Thursday, a seller source reported offers for material with delivery in the fourth quarter at €725-745 per tonne ex-works, and deals at €715 per tonne ex-works.
On the same day, a buyer source reported deals within the range of €730-740 per tonne ex-works and a second buyer indicated tradeable levels at €710-715 per tonne ex-works.
The market was still slow during the August holiday period, but sources said HRC consumption was increasing in Germany, with some mills targeting prices as high as €800 per tonne ex-works for deliveries in October.
But views on these increases were mixed, with some sources expecting buyers to pay such prices, while others were skeptical that the increases would be achieved.
“This is just targeting, I hear the same. But we need to wait and see who books what,” a trade source said on Friday.
The corresponding Fastmarkets’ daily steel hot-rolled coil index domestic, exw Northern Europe was calculated at €722.08 per tonne on August 21, down by €2.30 per tonne from €724.38 per tonne on August 20.
The index was up by €3.33 per tonne week on week and by €12.08 per tonne month on month.
In Italy, participants were expected to return to work in the week of August 24, so the market was largely inactive on Friday.
The latest offers and indications were reported within the range of €700-720 per tonne ex-works in the previous days.
As a result, Fastmarkets’ daily steel hot-rolled coil index domestic, exw Italy was €712.50 per tonne on August 21, unchanged from August 20.
The index was down by €1.25 per tonne week on week but up by €13.12 per tonne month on month.
EU trade barriers boost Polish distributors’ profitability
The introduction in the EU of CBAM and the new trade regime has stabilised and lifted steel prices, thereby improving the profitability of Poland’s stock market-listed steel distributors, Kallanish notes.
Demand and prices stabilised in the first half of 2026 following an earlier period of market correction, says distributor Bowim. Higher second-quarter prices on-year and the use of the first in first out (fifo) inventory method resulted in increased steel trading profitability, Stalprofil notes. Polish market participants also anticipate support from Poland’s local content scheme, which aims to raise domestic suppliers’ share in public infrastructure projects, it adds.
Bowim’s standalone first-half revenue fell 6% on-year to PLN 842.4 million ($228.2m) but the firm turned to a PLN 17.9m net profit versus a year-earlier loss of PLN 1.3m.
Stalprofil saw standalone H1 revenue rise 7% to PLN 579.1m and net profit balloon by 1,960% to PLN 10.2m.
Bowim however notes that “the market environment remains volatile, particularly in terms of energy costs, the pace of demand recovery in steel-consuming sectors, and geopolitical risks. In the company’s opinion, the gradual improvement in economic activity and the applicable regulations and trade conditions in the European Union may support the stabilisation of sales volumes and pricing conditions.”
Electrical steel and cold-formed sections producer Stalprodukt however had contrasting fortunes in H1. The firm has not yet published its preliminary results, but did specify that H1 electrical steel segment revenue dropped 36% compared to the average revenue for H1 2024 and 2025.
The decline is attributed to the “significant increase in sheet metal imports to Europe at prices notably deviating from European cost factors,” the firm notes. “The unfavourable cost factors that processors of steel, including transformer sheet, struggle with in international competition have deteriorated further. In the issuer’s opinion, this situation is the result of the conditions of carrying out production activities in the European Union.”
Author: Adam Smith
IW Köln pleads for retaining domestic steel production
The Cologne Economic Institute (IW Köln) has called for steel production to remain in Germany and Europe, and warns against relocating entire production stages.
In a recent study seen by Kallanish, it discusses challenges like high energy costs and low availability of hydrogen, against the backdrop of the steelmaking energy transition. European mills’ transition has been questioned by some who recommend that ironmaking via the DRI route be left to countries with abundant energy supply, for example in the Middle East.
IW Köln underlines that Germany’s manufacturing industries are intensely interwoven in a value chain characterised by international strength and sizeable exports. If parts of the chain break away, others will follow. According to IW Köln, half a million jobs in Germany are directly dependent on the steel industry, when including suppliers and direct customers. When ancillary steel-based industries are also taken into account, this figure could rise to 5 million jobs, the institute points out.
It also underlines the importance of regional proximity between business partners, and highlights security as one factor. Many overseas locations with low energy costs lack other basic prerequisites, like political stability and a functional transport infrastructure.
IW Köln concedes that imports of hydrogen and sponge iron could play a role in the German steel industry, which might need to reposition itself in an adjusting value chain.
In a reaction piece on LinkedIn, Salzgitter chief executive Gunnar Groebler agrees with IW’s findings. “A comparison limited to production costs is short-sighted. It ignores overall costs, risks and reliability of supply,” he writes.
A functional circular economy in Europe will only work on short distances, because transport costs are becoming the crucial driver to an increasing extent, Groebler writes. “You can always get your steel cheaper somewhere else. But what is the price for losing capacities?” he asks.
Author: Christian Koehl
Balkan Steel Market: Prices, Demand and Trade Outlook
Italian steel group bids for former Ilva assets amid ownership saga
Federacciai, Italy’s steel industry association, has submitted an expression of interest for ADI, Acciaierie d’Italia, the former Ilva steel plants, alongside 14 of its member companies, according to a Federacciai statement on Aug. 18, potentially offering a domestic solution for what was once Europe’s largest integrated steelmaking site.
The move comes as the Italian government continues to seek new ownership for the steelmaker following years of production disruptions, financial difficulties and environmental challenges.
The 14 companies joining Federacciai’s expression of interest represent a broad cross-section of Italy’s steel industry, ranging from specialty steelmakers to producers of carbon steel long and flat products. According to Federacciai’s statement, the companies in the consortium are: ABS Acciaierie Bertoli Safau, Acciaieria Arvedi, Acciaierie Venete, Advanced Steel Solutions (Gruppo Asonext), AFV Acciaierie Beltrame, Alfa Acciai, Compagnia Siderurgica Italiana, Duferco Travi e Profilati, Feralpi Siderurgica, Ferriera Valsabbia, Lucchini RS Holding, Marcegaglia Carbon Steel, O.R.I. Martin and Rubiera Special Steel.
The expression of interest concerns assets that have been at the center of Italy’s industrial policy debate for years, particularly since environmental concerns led to production restrictions at the Taranto facility. The site has a nominal crude steel production capacity of around 8 million metric tons/year and historically operated as an integrated steelworks using blast furnaces.
The breadth of the consortium suggests an effort to bring together the technical expertise and financial resources of Italy’s steel industry to address the complex industrial, financial and legal situation surrounding the former Ilva. However, the consortium’s bid covers only the downstream, or “cold-end,” operations. It does not include the upstream “hot-end” operations in Taranto, the heart of the integrated steelmaking process, where iron ore is converted into liquid steel, the association press officer told Platts, part of S&P Global Energy, on the phone on Aug. 19.
The exclusion follows a July 27 court ruling ordering the shutdown of Ilva’s hot-end operations within 90 days on environmental grounds.
The former Ilva assets have been under extraordinary administration since Feb. 20, 2024, when special commissioners were appointed following a request from Italian state investment agency Invitalia and despite opposition from steelmaker ArcelorMittal, then the largest shareholder in Acciaierie d’Italia, or ADI.
ArcelorMittal acquired Ilva from the Italian government in 2018 in a deal valued at Eur1.8 billion ($1.95 billion). The company and the Italian government are now involved in legal disputes over ownership rights and compensation claims.
Before the consortium’s expression of interest, other potential buyers have also previously shown interest in ADI: India’s Jindal Group and US-based Flacks Group.
ADI is currently operating at a sharply reduced rate, with only its No. 2 blast furnace in Taranto, which has a capacity of around 2 million mt/year, in operation. ADI has three blast furnaces at the site, but BF2 is currently the only one running. BF4 began undergoing refurbishment in mid-March, while BF1 remains under seizure by Italian magistrates following a fire on May 7 last year.
Platts assessed domestic HRC in Southern Europe on Aug.18 at Eur710/mt ex-works Italy, stable day over day.
Author: Annalisa Villa
German steel industry presses for infrastructure action as Rhine disruption persists
Low water levels on the Rhine River continue to disrupt German steel logistics, prompting industry leaders to call for urgent government action to prevent recurring transport bottlenecks from becoming a permanent competitive disadvantage for the country’s manufacturing sector.
The persistent drought conditions affecting Europe’s most important industrial waterway have forced steelmakers to adapt their logistics strategies, with thyssenkrupp, the largest German steelmaker, maintaining its use of externally chartered vessels with lower draft capabilities to supply its Duisburg site. The company’s own push-barge fleet remains out of service due to insufficient water depth.
“The situation on the Rhine remains challenging,” a thyssenkrupp Steel spokesperson told Platts, part of S&P Global Energy, on Aug. 18. The company’s dedicated low-water task force continues to monitor conditions closely, though customer supply remains secure for now through the deployment of specialized vessels secured as a precautionary measure.
The ongoing disruption has elevated the issue to the political agenda, with Federal Transport Minister Steffen Bilger convening high-level talks on Aug. 6 with industry representatives to address the structural vulnerabilities exposed by recurring low-water events.
The German Steel Association used the ministerial meeting to press for concrete infrastructure improvements and policy measures to mitigate future disruptions. Inland waterways handle approximately one-third of the steel industry’s transport volume, making Rhine navigability critical to maintaining competitive operations.
“The persistent low water situation poses considerable challenges for industry and jeopardizes the security of supply as well as the competitiveness of Germany as a business location,” said Kerstin Maria Rippel, managing director of the German Steel Association, following the Aug. 6 talks.
While steel companies have implemented precautionary measures including additional storage capacity and flexible logistics chains following previous low-water episodes, Rippel said industry cannot compensate for structural transport infrastructure deficits alone.
The association is calling for accelerated unloading optimization on the Middle and Lower Rhine, strengthened rail capacity as a reliable alternative route, and additional transport capacity on road and rail during crisis situations.
The Rhine’s water levels have been under pressure since mid-July following a summer heat wave and scarce rainfall. The German Federal Waterways and Shipping Administration has reported record-low water levels in the Rhine River, with levels below 10 centimeters at the Kaub chokepoint in mid-August with the low water levels expected to persist through all August.
For thyssenkrupp Steel’s Duisburg site, one of Europe’s largest steelmaking hubs, the disruption has already necessitated adjustments to hot metal production due to constraints in raw material supply. The facility relies heavily on stable inbound logistics for iron ore, coal and other bulk inputs typically transported via the Rhine system from North Sea ports.
Author: Annalisa Villa
Romanian longs prices stable, weak demand keeps discounts in place
Following persistent downward pressure in recent weeks, Romania’s longs market has entered a more stable phase, with both the domestic mill and traders refraining from further headline price cuts this week. Nevertheless, the market stability remains fragile, as weak demand continues to weigh on business and discounts of €10-15/mt are still available in negotiations. Despite the approaching end of August, trading activity has yet to show any meaningful recovery, with the holiday period, sufficient inventories and tight liquidity keeping buyers cautious and purchases largely confined to immediate needs. Attention is therefore gradually shifting toward September, when market participants expect activity to pick up, while some Romanian buyers are already showing interest in Turkish material for potential new bookings.
Romanian traders are currently offering rebar at €610-615/mt ex-warehouse, broadly unchanged from last week. Workable levels, however, can fall by €10-15/mt depending on volumes and payment terms, as sellers remain willing to make concessions to secure the limited business available. Meanwhile, the country’s sole rebar producer, Beltrame, has also kept its quotations at €610-620/mt ex-works, although discounts of €10-15/mt are heard to be possible for larger volumes and serious inquiries.
Wire rod quotations have likewise remained at €650-660/mt ex-warehouse this week. Some flexibility is still possible during negotiations, but buying interest remains weak and transactions continue to be largely need-based.
On the import side, Turkish material has attracted more attention this week, as expectations of higher prices in Turkey, together with the continued strength of the scrap market, appear to have encouraged some Romanian buyers to make a move ahead of September. Market sources suggest that a few purchases may already have been concluded, although no details regarding volumes or transaction prices have emerged so far. Turkish rebar is currently quoted at $575-590/mt FOB, up from $570-580/mt FOB last week. With freight estimated at $25-30/mt, the corresponding delivered level is calculated at approximately €520-540/mt CFR Romania, compared to €520-530/mt CFR Romania previously. Egyptian offers have also increased this week. Rebar is currently quoted at $580-590/mt FOB, up from $575-580/mt FOB last week, while wire rod has risen to $600-610/mt FOB from $590-600/mt FOB. Including freight of approximately $30-35/mt, these levels correspond to €530-545/mt CFR Romania for rebar, compared to €525-535/mt CFR last week, and €550-560/mt CFR for wire rod, up from €540-550/mt CFR previously. Import activity from the EU, meanwhile, remains subdued. Bulgarian rebar offers are unchanged at €610-620/mt CPT Romania, though interest at these levels is still weak. Elsewhere in Europe, the summer holiday period continues to restrict trading activity and the availability of fresh quotations, leaving few new offers in the Romanian market for the time being.
Author: SteelOrbis Editorial Team
