Category: Latest Updates

In the first weeks of the year, the European steel market has exhibited a complex dynamic, oscillating between “new price levels” and the “actual transaction pace.” While spot prices remain cautious in key hubs such as Germany and Italy, producers have notably intensified their attempts to raise prices across both long products and flat steel segments.

ArcelorMittal’s recent price announcements have played a decisive role in shaping the flat products market. Although the levels of €700/ton CPT for April-delivered HRC, €820/ton CPT for April-delivered HDG, and €830/ton CPT for May-delivered CRC exceed current spot prices, they have established important reference points for the market. Concerns over “replacement cost” have become more pronounced among service centers and distributors, reinforcing expectations for price increases. While some short-term increase attempts may be limited by negotiation, it is clear that the overall market direction is trending upward. ArcelorMittal’s pricing signals have increased the potential for upward movement in market prices.

In Germany, rebar trades at around €580/ton EXW and between €600–615/ton CPT, while wire rod prices hover between €590–600/ton CPT. Thick plate prices remain in the €690–700/ton EXW range. Flat products such as hot-rolled coil (HRC) transact near €630/ton EXW, with CRC priced between €725–735/ton and HDG ranging from €730–770/ton. These price levels reflect producers’ intentions to improve margins, though demand remains cautious.

The situation in Italy is similar but somewhat more fragmented. Long products such as IPN/IPE are priced within the €720–740/ton EXW band, while wire rod trades at €590–615/ton CPT. Thick plate prices are between €700–720/ton EXW, with CRC and HDG at €730–750/ton and €750–770/ton EXW respectively. HRC prices hover around €625–630/ton EXW, which is seen as the market equilibrium point. Italy’s prices remain more flexible compared to Germany, reflecting fragile domestic demand and more evident import pressure.

In Southern Europe, there is a clearer upward trend in rebar prices. In Spain, prices stand at approximately €640–650/ton CPT and €600–620/ton EXW. Portugal’s market reference prices are around €605–620/ton EXW. Export-wise, Portuguese-origin rebar is priced near €630/ton, while Spanish-origin rebar trades at about €660/ton. Offers from Megasa indicate CFR prices to North Africa at around €680/ton, demonstrating producers’ efforts to raise price levels both domestically and in export markets.

Some producers have already announced targets to set HRC prices, including deliveries, in the €670–700/ton range for the second quarter, anticipating continued price increases. Meanwhile, Turkish and Asian-origin products under CBAM are priced at approximately €600–630/ton DDP in Italy.

The implementation of CBAM as of January 1, 2026, has initiated a structural shift in the European steel market. However, significant uncertainties persist regarding the recognition of third-country ETS systems and emissions verification processes. These challenges complicate cost and reporting calculations for importers. The requirement for CBAM registration numbers in customs procedures rapidly became a key agenda item at the beginning of the year and has since become widespread. The mandatory use of TARIC codes has caused operational disruptions within the sector. While geopolitical and macroeconomic fluctuations have somewhat overshadowed CBAM’s short-term impact, it is now clear that CBAM will fundamentally alter trade dynamics and cost structures in the medium and long term. This structural transformation appears inevitable in shaping the new era of the European steel industry.

 

The European Parliament (EP) has decided to initiate the legal process regarding the trade agreement signed between the European Union (EU) and the Southern Common Market (MERCOSUR).

At the plenary session of the European Parliament held in Strasbourg, the trade agreement signed on 17 January between the EU and the MERCOSUR countries — Argentina, Brazil, Paraguay, and Uruguay — was discussed.

During the session, a proposal to request a legal opinion from the European Court of Justice (ECJ) on whether the EU–MERCOSUR trade agreement complies with EU treaties was put to a vote. The proposal was approved by 334 votes in favor to 324 against. Following this decision, the European Court of Justice will examine the legal aspects of the agreement. Similar cases reviewed by the Court are known to take around two years to conclude.

The EU–MERCOSUR trade agreement, whose negotiations lasted 25 years and which was signed on 17 January, will enter into force after being approved by both the European Parliament and the EU Council. Under the agreement, tariff concessions are expected for certain agricultural products such as beef, poultry, and dairy, while MERCOSUR countries are expected to further open their markets to European industrial goods.

The agreement also includes safeguard clauses allowing restrictions on market access for sensitive agricultural products imported from MERCOSUR when deemed necessary. However, farmers’ organizations across Europe have stated that they do not consider these measures sufficient.

Brussels views the agreement as a major geopolitical gain that will strengthen the EU’s trade presence and influence in Latin America. While Germany and Spain support the deal, several member states — notably France, Poland, and Hungary — along with many farming groups, have voiced opposition.

 

 

Steel heavy plate prices in Northern Europe moved up in the week to Thursday January 22 amid Carbon Border Adjustment Mechanism (CBAM) cost support, while the Italian market remained unchanged but bullish.
Northern Europe

Plate prices in Northern Europe’s domestic market moved up in the latest pricing period amid higher offers, with support from a lack of import competition and uncertainty linked to the EU’s CBAM definitive regime, which came into force on January 1, while rising slab feedstock costs added further upward pressure.

“Reduced import volumes, driven by uncertainty around CBAM and safeguard measures, have prompted more buyers to rely on domestic supply,” said one buyer source.

They added that upward movement in the domestic market has been supported by these conditions.

Fastmarkets’ weekly price assessment for steel domestic plate, 8-40mm, exw Northern Europe was €720-750 ($846-881) per tonne on Thursday, rising by €20-50 per tonne from €700 per tonne a week earlier.

Offers for S235 plate were made at €720-770 per tonne during the week.

An import offer for S355 material was reported at €710 per tonne CIF Antwerp, including CBAM costs.

Plate market participants expressed further concerns around CBAM, with “complete insecurity around real imported slab [feedstock] costs”, especially regarding high default values given if actual emissions data cannot be verified.

And one plate trader said there remain big questions around which certification bodies would be verifying actual emissions data.

They added that many producers had stocked up on feedstock before the end of 2025 due to uncertainty around CBAM but added that restocking will be necessary in the near future.

Though some slab deals were heard at $520 per tonne in Italy’s slab import market during the week.

Italy
In Italy’s heavy steel spot market prices were flat, however the sentiment remained bullish amid fresh deals and lengthening lead times.

Fastmarkets’ weekly price assessment for steel domestic plate, 8-40mm, exw Southern Europe was €700-720 per tonne on Thursday, unchanged week on week.

Material was also heard sold at €750 per tonne, but for project-based work, which is often longer-term or involves special grades.

And offers were reported at €700-750 per tonne for S275 plate.

Indonesian S275 plate imports were offered at €670-680 per tonne DDP Italy during the week.

 

Steel beam prices in Europe rose considerably in the month to Wednesday January 21, with Carbon Border Adjustment Mechanism (CBAM) cost considerations affecting appetite for imports and supporting domestic markets, while rising scrap feedstock costs and bullish offers added further upward pressure.

The upward movement follows a dip in prices and sentiment in December.

Fastmarkets’ monthly price assessment for steel beams, domestic, delivered Northern Europe was €740-775 ($866-907) per tonne on Wednesday, up by €90-95 per tonne from €650-680 per tonne a month earlier.

Similarly, Fastmarkets’ monthly price assessment for steel beams, domestic, delivered Southern Europe was €740-775 per tonne on Wednesday, up by €90-95 per tonne month on month from €650-680 per tonne.

A key factor supporting the rise in domestic prices was the introduction of Phase 2 of the European Union’s (EU) CBAM – which, from January 1 2026, requires EU importers of high-carbon goods such as steel to purchase carbon certificates covering the embedded CO2 emissions of their imports.

There had already been significant price rises in flat steel markets late last year due to CBAM cost-considerations affecting import prices and demand.

Bullish seller sentiment at the start of the year also helped raise offers as producers aimed for higher prices.

However, while some market participants noted rising offers, they were sceptical of the tradability of higher prices amid continuing weak demand.

One market source said that the market was “very quiet” in early January, with market participants returning from the winter break.

Meanwhile, scrap feedstock prices in the bellwether Turkish market have been rising steadily since September 2025 – also contributing to the rise in European beams prices.

Fastmarkets’ calculation of its daily index for steel scrap HMS 1&2 (80:20 mix) North Europe origin, cfr Turkey was $369.97 per tonne on Wednesday, up by $5.26 per tonne month on month from $364.71 per tonne, and up by $42.97 per tonne from the low point of $327 per tonne on September 12 last year.

 

Steel hollow sections prices in Europe’s domestic markets rose further during the month to Wednesday January 21 after the implementation of the EU’s Carbon Border Adjustment Mechanism (CBAM) on January 1 reduced import competition and lifted feedstock costs.

CBAM is an EU climate policy that puts a carbon price on certain imported goods based on their embedded greenhouse gas emissions.

Fastmarkets’ monthly price assessment for steel sections (medium) domestic, delivered Northern Europe was €770-840 ($902-984) per tonne on Wednesday, up by €10-40 per tonne from €760-800 per tonne a month earlier.

Fastmarkets’ monthly price assessment for steel sections (medium) domestic, delivered Southern Europe was €770-840 per tonne on Wednesday, up by €10-40 per tonne month on month from €760-800 per tonne.

Prices were also supported by bullish offers, with producers often targeting higher prices in the new year.

Hot-rolled coil feedstock costs have been moving up steadily since July.

More recently, CBAM-cost considerations and uncertainty have limited import availability, supporting higher prices in Europe’s domestic HRC markets.

Fastmarkets’ daily calculation of its steel HRC index domestic, exw Northern Europe was €642.59 per tonne on Wednesday, up by €16.34 per tonne from €626.25 per tonne a month earlier and up by €97.59 per tonne from €545 per tonne on July 8 last year.

 

Australia’s Bisalloy Steels has signed a strategic partnership with MIRAS Steel Trade aimed at strengthening its footprint across Central and Eastern Europe.

The agreement will see the two companies collaborate on the supply, processing and distribution of high-performance armour and structural steel for defence, naval and heavy engineering applications, Kallanish notes. Coverage under the partnership will span Romania, Czechia, Hungary, Bulgaria and the Republic of Moldova, broadening Bisalloy’s European reach.

Bisalloy says the collaboration will allow it to offer shorter lead times, local processing options and closer technical support to European customers, while accelerating the expansion of its end-user base in the region.

MIRAS, meanwhile, has launched a dedicated platform named “SteelDefence”, providing European customers with integrated services ranging from stockholding and cutting to CNC machining and delivery of finished components.

The European expansion follows Bisalloy’s CE Marking approval in December 2025 under the Construction Products Regulation, enabling its structural steel grades to be marketed across the EU and the UK. The certification confirms compliance with European performance, quality and traceability requirements, opening the door to construction and infrastructure projects beyond the company’s traditional defence markets.

Bisalloy notes it is already engaged with a major customer on a long-term project, signalling early commercial traction.

Beyond Europe, Bisalloy continues to broaden its global operational footprint. In Indonesia, its joint venture partner, PT Bima, launched PT Bima Precision Processing last year, adding local fabrication capacity and allowing customers to source Bisalloy plate with integrated processing services. The company has also expanded its agency network through new representation in South Korea and Romania, it adds.

 

Steel production in Germany dipped notably in 2025, according to the national steel federation, WV Stahl in its yearly review.

Crude steel output at German mills came to 34.1 million tonnes last year, which was 9% below an already weak year in 2024. A similarly low level was seen only in the year of the global financial crisis of 2009.

The capacity utilisation has now fallen below 70%, which is a critical mark for the energy-intensive steel production, according to WV Stahl.

The year-on-year dip was stronger for oxygen-route crude steel, which fell by 10.7% to 23.6m tonnes. The EAF-route production fell by 3.5% to 10.5m tonnes. In December, the y-on-y gap levelled out at only a 0.2% decline compared with December 2024, to 2.7m tonnes.

This marks the fourth year that crude steel production in Germany has been below 40m tonnes, which is seen as the threshold of profitable nationwide steel output, Kallanish understands.

Steel demand in Germany has declined, too. According to preliminary data, the extrapolated market supply of 30m tonnes is again below the already low average of the past four years, the federation notes.

WV Stahl finds the development in foreign trade of steel particularly alarming. Global overcapacity – particularly in Asia – and the increasingly aggressive and unpredictable US customs policies are further exacerbating the situation, it says.

“Under these conditions, the steel industry will hardly be able to recover in 2026,” warns WV Stahl’s managing director, Kerstin Maria Rippel.

“In order to limit import pressure on the European market, the EU Commission’s sound proposal for a highly effective protective instrument must now be implemented swiftly. The industry cannot afford any further delays,” she concludes.

 

Czech-Republic based Nova Hut, formerly Liberty Ostrava, is planning to invest up to CZK 150 million ($6.5m) this year in production modernisation, equipment renewal and energy efficiency, according to production and technical director Ivo Chmelík.

“A key strategic project is the preparation for the construction of an electric arc furnace, with an estimated value of approximately CZK 17 billion,” the company says.

“This long-term ecological project, supported by a grant from the Modernisation Fund of the Ministry of the Environment, has the potential to significantly shape the future of steel production at Nova Hut,” it adds.

The planned EAF capacity is up to 1.5 million tonnes/year, Kallanish notes.

In parallel, Nova Hut plans a series of operational investments focused on reducing energy consumption and emissions, recovering waste heat on hot rolling lines, modernising technologies and increasing the share of higher value-added products. It will also conduct a major upgrade of its rotary hearth furnace.

The company took over the formerly insolvent plant on 1 October, following approval from the Czech Competition Authority and consent of the insolvency court. The plant’s blast furnaces and coking plant have been permanently decommissioned.

 

Buyers of coil in Germany, Benelux, and neighbouring countries have expressed little surprise over ArcelorMittal’s recent announcement of a hot rolled coil price increase to €700/tonne ($821) ex-works.

Mills started the year with a reserved attitude, one southern German buyer reflects. “Of five mills, two would still give offers, the others did not appear on the market,” he tells Kallanish. He therefore expected that a new price announcement was near, with the market leader making the first move.

“They’re calling for €700, so another mill will give you a more friendly offer of €680,” a southern German buyer believes. A realistic price on the market could be €660, “which would be an achievement, too,” he believes. That would line up with orders he placed last week with a mill which had some capacity left for mid-March. Despite a long transport duration, he concluded the transaction for €660 delivered.

The mill has since informed him of a €20 increase this week, before ArcelorMittal’s announcement.

According to another observer, mills have only limited capacity until end-March, with offers at €650/t ex-works.

“That won’t last much longer, and then they will likely ask for €670,” he says. He anticipates those prices were already the mills’ target when HRC was selling at €630/t.

A Dutch manager saw prices only slightly higher in the Netherlands last week, with expectations of a rise to €700 or higher for the second quarter.

But he, in line with most players, is sure that “buyers remain cautious and there is no clear urge to buy.” The arguments of import policy measures and production costs stand against a recovery in demand that is hardly visible in practice, he finds.