Year: 2026

Czech energy and investment group Sev.en Global Investments has signaled interest in a possible combined bid for British Steel and Speciality Steel UK, arguing that a single buyer could create a stronger, more stable future for the UK steel industry, according to a report by The Guardian. The proposal, if pursued, could reshape the country’s steel sector by creating the UK’s largest steelmaker.

Sev.en suggests combined solution for British Steel and SSUK

Sev.en Global Investments has said the UK government should look for one buyer for both British Steel and Speciality Steel UK. The group stated that such a combination could create the country’s biggest steel producer and provide a more robust industrial solution.

The company already owns the UK’s largest electric steelworks and said it plans to invest £100 million in the UK, mainly in the electric arc steelworks in Cardiff, which it acquired last year. Sev.en also stated that it has the capacity to invest hundreds of millions of pounds more in Britain through its 7 Steel brand.

Sev.en says UK needs a buyer with steelmaking expertise

Speaking to The Guardian, Sev.en CEO Alan Svoboda said the UK government should seek a large company with proven steel production experience to take on British Steel’s plant in Scunthorpe, Lincolnshire, and SSUK’s electric arc furnace operations in South Yorkshire.

Although Svoboda said he could not discuss specific talks with the government or other parties, he suggested that a combined approach could be more attractive if it reduced the need for taxpayer support.

French recycling firm Derichebourg has signed an agreement to acquire 100% of the share capital of Germany’s Scholz Recycling Group, Kallanish notes.

This strategic acquisition continues Derichebourg’s international growth and strategy to secure its leading position in the global metal waste recycling industry, it says.

According to the French company, this will also expand operational scale by integrating a network of over 100 recycling centres – 180 including joint ventures – located in countries where the group has little or no business.

The acquisition will also “support the decarbonisation of the steel industry in Europe to meet the growing demand from European steelmakers who are replacing their traditional blast furnaces with electric arc furnaces which consume large quantities of high-quality scrap metal,” it adds. It will “optimise operational efficiency through complementary logistical and commercial operations across Europe.”

The transaction is expected to close in the second half of 2026. It would be financed entirely from Derichebourg’s existing cash resources and credit facilities, with the bridge loan provided by BNP Paribas.

“This project would mark a pivotal step in our international expansion strategy,” says Derichebourg chief executive Abderaman El Aoufir. “We have been able to nimbly seize a complex market opportunity thanks to the strength of our balance sheet and our industrial vision.”

Derichebourg Group is a major international operator in waste recycling, mainly metal and public sector services. The group currently operates in 13 countries and has 5,393 employees worldwide. In 2025, Derichebourg generated revenue of €3.3 billion ($3.85 billion).

Founded in 1872, Scholz is one of Europe’s leading metal recycling companies. With a turnover of €1.6 billion in 2025, the group has a long-standing industrial presence in Germany, as well as in the Czech Republic, Poland, Slovenia, and through joint ventures in Austria and Romania. In 2025, Scholz sold over 3 million tonnes of recycled ferrous metals, non-ferrous metals, paper, cardboard and plastics.

The European Commission, under the EU Merger Regulation, has approved the acquisition of German mill Hüttenwerke Krupp Mannesmann (HKM) in Duisburg by Salzgitter Mannesmann.

The transaction relates primarily to the manufacture of semi-finished carbon steel products, the Commission writes.

In February, Germany’s largest steelmakers, Salzgitter AG and thyssenkrupp Steel agreed on a transfer of tk Steel’s 50% stake in HKM to Salzgitter AG’s subdivision Salzgitter Mannesmann, effective 1 June (see Kallanish 6 February).

Salzgitter so far holds 30% in HKM. The remaining 20% was held by French tubemaker Vallourec, which had closed its German mills in recent years. The agreement sees it selling its stake to Salzgitter.

HKM is one of the biggest German slab mills with a potential capacity of around 5 million tonnes/year of slab, but no rolling facilities. For tk Steel’s parent thyssenkrupp, the ownership in HKM had become a hurdle in the group’s endeavour to make its steel division a separate independent company.

Meanwhile, HKM slabs are feedstock for Salzgitter Mannesmann’s tubes production.

The European Commission concluded that the notified transaction would not raise competition concerns, given the limited impact on the market structure. The notified transaction was examined under the simplified merger review procedure, it says.

Tubos Reunidos has informed the CNMV that the Board of Directors has acknowledged that, due to the cash flow pressures experienced by the Company in recent months—further aggravated by the undesired suspension of activity at the Amurrio mill—the Company is in a situation of imminent insolvency.

Under these circumstances, and notwithstanding that the Board of Directors has been working over recent months on a viability plan aimed at ensuring the continuity of the Company and its subsidiaries, given that the necessary conditions to guarantee the Company’s viability at present have not yet been secured (particularly in terms of a significant cash inflow), the Board, maintaining the prudent approach that has guided its actions, has been compelled to file for voluntary insolvency proceedings in accordance with Article 6 and related provisions of Royal Legislative Decree 1/2020 of 5 May, approving the revised text of the Spanish Insolvency Law (“TRLC”).

This filing has been submitted today, 4 May, before the competent court in Álava.

The decision to file for voluntary insolvency proceedings—also adopted by the governing bodies of the Company’s subsidiaries—has been taken following appropriate external advice and with the aim of protecting the interests of creditors, employees, suppliers and shareholders of the Company and its subsidiaries.

Tubos Reunidos is a listed company on the Spanish stock exchange with more than 130 years of history and a global leader in specialised niche segments of seamless steel tubular products. The Group operates three production facilities located in Amurrio and Subillabide (Álava), and Valle de Trápaga (Bizkaia).

Italian distributors saw some levels of order intake in April despite the Easter holiday and broadly sluggish market conditions.

Several mills raised long product prices during the month, while large distributors maintained competitive pricing compared to mills.

One large distributor tells Kallanish the market remains stuck and stagnant, though it has managed to sustain sales through low prices thanks to material purchased at cheaper levels.

Mills raised sections, rebar, mesh and merchant bar values but appear to have sold lower volumes than the distribution segment because of the high prices.

May remains uncertain for now as it started with very little demand. A second distributor says it is normally a busy month, but activity in Western Europe is expected to be particularly slow due to the high number of bank holidays in France and Germany. The source believes elevated long product prices will hold through May.

Some mills have sold strong volumes on the export market and say they are in no rush to sell domestically, intending to maintain high price levels. Two large distributors confirm they have no plans to buy at current prices and hold sufficient stock to cover May.

Italian merchant bar is currently trading at €360-385/tonne ($423.45-452.85/t) delivered, while producers are asking €390/t delivered and considering further increases. Current transactions, including size extras, range between €780-805/t.

Smaller buyers say they have purchased very little from producers last month due to elevated prices. Agents report subdued demand, with all buyers purchasing only for immediate needs. One agent tells Kallanish volumes in the first four months matched last year’s levels, but May has started extremely slowly. Sellers are taking a wait-and-see approach, and no forecasts are possible in current market conditions. Those with sufficient stock, such as distributors able to supply material immediately, are best positioned in this market.

Meanwhile, sections demand remains average, and prices are stable compared to late-April at €820-830/t delivered. Several sources believe current high prices for long products are unsustainable and a trend reversal lies ahead.

Tariffs alone will not deliver a new golden age for US manufacturing, according to Johan “Kip” Eideberg of the Association of Equipment Manufacturers (AEM). Eideberg argues that President Donald Trump’s administration risks undermining its own industrial ambitions by making it more expensive to build in America, Kallanish reports.

In an opinion article in Fortune, Eideberg says manufacturing remains central to Trump’s economic vision, even as courts and policymakers reshape the legal basis for parts of the administration’s tariff regime. Eidenberg contends that tariffs on steel, aluminium and derivative components are raising costs for domestic producers at the very moment Washington says it wants to boost output and competitiveness.

“President Trump’s goal of ushering in the greatest manufacturing era in American history remains intact,” says Eideberg, who is AEM’s senior vice president of government and industry relations. “But the fatal flaw of the administration’s current tariff strategy is that it is making it more expensive to manufacture in America.”

Eideberg pushes back against prominent protectionist voices such as Oren Cass, Michael Lind and former US trade representative Robert Lighthizer, who have argued that tariffs are necessary to rebuild industrial capacity and secure supply chains. He says those arguments overlook how modern equipment manufacturing actually works.

“Supply chains are vast, intricate and global,” Eideberg points out. “Companies operate on multi-year investment cycles, and suppliers cannot be uprooted overnight.”

That means efforts to force rapid reshoring through tariffs risk creating bottlenecks, shortages and inefficiencies rather than strengthening the sector, he argues. Higher input costs threaten export performance by making US-sourced equipment less competitive internationally.

“Higher input costs make US goods less attractive in foreign markets, forcing manufacturers to either absorb losses or relocate production abroad to remain competitive,” Eideberg says.

He warns that labour shortages present an even deeper structural barrier to any large-scale reshoring push. The manufacturing sector is already struggling to fill hundreds of thousands of open roles, while equipment manufacturing alone has more than 85,000 vacancies, he says. Retirements, tighter labour supply and immigration constraints are all intensifying the problem.

“It will take far more than tariffs to rebuild domestic manufacturing,” Eideberg emphasises. “Meaningful increases in workforce availability through training, retention, workforce participation strategies and immigration reforms are essential.”

Instead of relying on tariffs as a blunt instrument, Eideberg calls for a broader competitiveness agenda centred on innovation, infrastructure, workforce development and supply-chain resilience.

“President Trump is right to champion manufacturing as the backbone of American strength,” he confirms. “But tariffs and forced reshoring are costly detours.”

Germany’s thyssenkrupp and Jindal Steel International have mutually decided to pause discussions about the Indian company acquiring a stake in thyssenkrupp’s Steel division, the two groups announced over the weekend.

“The original assumptions and prerequisites for a potential sale of thyssenkrupp Steel have significantly changed in recent months,” the German group says in a statement sent to Kallanish. It refers to progress it has made in realigning its steel segment, for example, with the collective restructuring agreement concluded with union IG Metall.

The self-confidence expressed in the press release is probably even more attributable to developments in the regulatory environment for steelmakers in Europe, which “has changed significantly, becoming fundamentally more favourable”, the firm notes.

Thyssenkrupp welcomes the fact policymakers are increasingly addressing the challenges facing the steel industry, particularly with regard to trade protection measures targeting unfair competition and global overcapacity.

“The conditions for the profitable continuation of thyssenkrupp Steel are better than they have been in a long time,” says thyssenkrupp AG chief executive Miguel López. Thyssenkrupp says it will continue to operate its Steel division “independently”, in order to prepare it for a potential floatation on the stock market.

Although the group is not explicit about it, the strategy it indicates in the statement seems to reject the idea of seeking another partner or buyer for the steel division. This could be considered a signal to US investment fund Flacks Group, which is in talks to take over Acciaierie d’Italia. In March, Flacks was heard suggesting it would consider a bid for thyssenkrupp Steel Europe if talks with Jindal fail (see Kallanish passim).

In a reaction statement, union IG Metall demands to have a say in the upcoming considerations for the future of the Steel division. Regarding the cautious tone used by thyssenkrupp and Jindal in so far as they have “paused” negotiations, the union asks for a clear-cut end to the negotiations “without leaving a back door open”.

Continued insecurity during a period of long negotiations means stress for the workforce, IG Metall warns.

European hot-rolled coil prices edged lower on Tuesday May 5, weighed down by sluggish demand and comfortable inventory levels on the buy side – and with summer approaching, few in the industry see any realistic path to a substantial price recovery in the short term, sources told Fastmarkets.

In Northern Europe, buyer sources estimated achievable prices at €680-700 ($796-820) per tonne for June-July delivery, with the lower end of the range said be have been offered by a re-roller in the Benelux area.

German mills had no June delivery coil availability, according to sources, but attempts to consolidate offers at €730-750 per tonne delivered (€715-735 per tonne ex-works) for July delivery volumes have failed to gain traction so far.

“There is no chance [of a] price increase going into summer, when demand usually slows down,” a steel service center source in Germany said. “Besides, we are well stocked and don’t need [more] material – especially looking at the demand from end users.”

One integrated mill in the Benelux region was said to still have technical issues and, therefore, had no June-delivery coil available, sources said. And because of the tech issues, the supplier was down by 70,000-80,000 tonnes of HRC in the short term and therefore could not be very flexible on pricing. Offers for July were heard at €740-750 per tonne ex-works, but no confirmed deals were reported at that level.

Fastmarkets’ European HRC indices were not published on Monday May 4 because of the Spring Bank Holiday in the UK.

But Fastmarkets’ daily steel hot-rolled coil index domestic, exw Northern Europe was calculated at €698.75 per tonne on Tuesday, down by €3.75 per tonne from the latest calculation of €702.50 per tonne on May 1.

The index was down by €6.88 per tonne week on week and by €20.01 per tonne month on month.

In Southern Europe, Fastmarkets’ daily steel hot-rolled coil index domestic, exw Italy was calculated at €693.75 per tonne ex-works on Tuesday, down by €1.25 per tonne from the most recent calculation of €695.00 per tonne on Friday May 1.

The index was down by €6.25 per tonne week on week and by €5.00 per tonne month on month.

Trading remained thin in the Italian HRC market, where tradable values were still hovering below the official offers, according to sources.

“The [HRC] market is totally flat. No new inquiries, no new negotiations… European mills couldn’t further raise prices [for July lead times] despite being protected by several trade barriers,” a trading source in Italy said.

Italian mills were offering June-July delivery coil at around €720 per tonne delivered (€705 per tonne ex-works), but most sources said the realistic transaction level in Italy was no higher than €680-700 per tonne ex-works.

A local re-roller, which suspended HRC production at the beginning of April due to technical issues, was expected to resume operations in June, sources told Fastmarkets.

No new import offers have been heard in Italy since last week.

Fastmarkets weekly price assessment for steel hot-rolled coil import, cfr main port Southern Europe, was €590-652 per tonne on April 29, with the lower end of the range reflecting transactions for Turkish coil and the upper end for Algerian HRC.

The pool of HRC suppliers willing to import into Europe remained limited on Tuesday. Offers from Asia have been scarce lately, with the potential costs arising from the EU Carbon Border Adjustment Mechanism (CBAM) weighing on demand, while disruption related to the conflict in the Middle East and higher freight rates added to the downward pressure on prices.

A coalition of 162 European industry associations and companies, including the European Steel Association (EUROFER), the European Federation of Steel, Tubes and Metals Distribution & Trade (EUROMETAL), and major producers such as ArcelorMittal, thyssenkrupp and Voestalpine, has called on EU policymakers to expand the scope of the Carbon Border Adjustment Mechanism (CBAM).

Industry stakeholders argue that while CBAM addresses carbon leakage risks for upstream materials like steel and aluminum, it fails to cover downstream products. This limitation leaves large parts of the value chain exposed to imports that are not subject to equivalent carbon costs.

Downstream industries face growing pressure

Sectors including energy, mobility, construction, machinery, packaging, defense, and home appliances are increasingly affected.

These industries face rising costs under EU climate policies while competing imports benefit from less stringent environmental regulations, creating a competitive imbalance.

Risk of carbon leakage shifting downstream

The coalition warned that the current system may unintentionally shift carbon leakage further along the value chain rather than eliminating it. This creates a risk of production relocation to regions with lower environmental standards, undermining EU climate objectives.

According to industry representatives, failing to expand CBAM could weaken incentives for investment in low-carbon production. The current framework risks distorting supply chains and reducing the effectiveness of decarbonization policies.

Call for rapid and simplified extension

The coalition is urging the European Parliament and Council to implement a fast and simplified expansion of CBAM to include downstream steel- and aluminum-intensive products. Such a move is seen as critical to ensuring a level playing field and protecting European industry.

Axel Eggert, director general of EUROFER, emphasized that without broader coverage, importers may bypass carbon costs by shifting emissions downstream. He stressed that expanding CBAM is essential to maintaining fair competition and ensuring the mechanism achieves its intended environmental and industrial objectives.

Author: SteelOrbis Editorial Team

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