Kallanish Europe Steel Markets panel expects higher prices at year-end
Participants in the closing panel discussion of Kallanish Europe Steel Markets in Vienna this week anticipated steel prices to pick up towards the end of the year. Their views however diverged on the degree of increase and what factors would play a crucial role.
The panellists were unanimous about the impact of EU trade measures on imports, including the Carbon Border Adjustment Mechanism (CBAM) as well as the new tariff rate quota system due from July. The effect will not be felt immediately, but likely after the summer break, when buyers will think about replenishing their inventories, said Philip Edmonds of M7 Metals. His guess is that by the end of the year, hot-rolled coil in Europe could reach €800/tonne ($925/t).
Alexander Soboll of Salzgitter Mannesmann, in principle, agreed with Edmonds’ view that buyers will evaluate their stock levels in September, but said he is more conservative, expecting €750/t. In particular, he warned that mills might revive capacities they had ramped down, which would undermine efforts to stabilise prices.
The argument was picked up by Kamal Arifi, director commercial transformation at SSAB Europe. If European mills reactivate more capacity than now, “we will lose the benefits we get from the safeguards”, he noted.
In that regard, Edmonds is more optimistic. “I think EU mills will be disciplined. They are much better at getting €100 more per tonne than producing another half a million tonnes,” he said.
Another factor was pointed out by Emanuele Norsa of Siederweb: scrap prices, which he finds are too low and not correspondingly aligned with steel prices.
“We need first to see scrap pick up more. The differential at this moment is too big,” Norsa said. In his assessment, HRC prices at year-end will be between €700/t and €750/t, “but not higher”.
Green Cargo to manage raw material and steel transport for Stegra’s Boden steel plant
Swedish green steel producer Stegra has announced a new logistics partnership with state-owned rail freight operator Green Cargo to support transportation requirements for its upcoming steel plant in Boden.
Under the agreement, Green Cargo will manage the movement of both inbound raw materials and outbound finished steel products, becoming a central component of Stegra’s future logistics network.
Rail network to connect Boden plant with key Swedish ports
Stegra has already secured logistics agreements with the ports of Luleå, Skellefteå and Umeå, which will serve as major gateways for raw material imports and steel exports. Green Cargo will provide the rail connections between these ports and the Boden steelworks, creating an integrated transportation chain that links maritime and rail infrastructure.
According to Stegra, the involvement of an experienced freight rail operator will help optimize logistics flows and strengthen supply chain reliability once commercial production begins.
Salzgitter secures first major green hydrogen supply contract for SALCOS® decarbonization project
German energy company EWE and Salzgitter Flachstahl GmbH, a subsidiary of German steelmaker Salzgitter AG, have announced that they signed a long-term agreement covering the annual supply of 10,000 mt of green hydrogen, marking a significant step forward for both Germany’s hydrogen economy and the decarbonization of steel production.
The agreement represents the first major offtake contract for hydrogen produced at EWE’s 320 MW electrolysis facility in Emden, which is currently under construction. It is also Salzgitter AG’s first large-scale external hydrogen procurement agreement.
Hydrogen deliveries are scheduled to commence in 2030 via Germany’s hydrogen core network and will continue under an initial seven-year contract period.
EU quota usage exceeds 85% in multiple steel categories
At the EU quota period between April 1 and June 30 some of the import quotas for certain steel products allocated for Vietnam, Turkey, South Korea, India, Taiwan and China have been exhausted, while over 85 percent of quotas for some steel products have been used up.
Looking at the exhausted quotas, Vietnam has used up all of its 111,491 mt quota for HRC (1A) allocated under “other countries”. Turkey has exhausted its quotas of 43,511 mt for CRC (allocated under “other countries”), 15,732 mt for organic coated sheets, 94,493 mt for rebars and 38,124 mt for other welded pipes. Meanwhile, South Korea has used up all of its 178,637 mt for metallic coated sheets (4B), 71,099 mt for organic coated sheets and 16,121 mt for tin mill products. India has exhausted its quotas of 78,670 mt and 19,042 mt for organic coated sheets and gas pipes, respectively. Taiwan has used up all of its 13,403 mt quota for tin mill products, while China has exhausted 8,460 mt quota for large welded pipes (25B).
The countries’ EU steel import quota usage over 85 percent can be seen in the table below.
High stocks, uncertainty over safeguards keeps European steel HRC market quiet
The European domestic market for steel hot-rolled coil (HRC) remained quiet on Tuesday June 9, with buyers postponing new deals because of high stocks and uncertainty over the details of the upcoming new safeguard regulations, particularly in regard to country-specific quotas.
In such conditions, indications of tradeable prices in Northern Europe were notably lower compared with mills’ targets. Both buyers and sellers said that workable prices were well below the €700-730 ($807-842) per tonne ex-works sought by the mills, hovering within the range of €670-685 per tonne ex-works but with no major sales heard during the day.
“The price pressure is mainly from a well-stocked market because both traders and service centres have built high levels in anticipation of this year’s challenges,” one buyer source said.
Fastmarkets’ daily steel hot-rolled coil index, domestic, exw Northern Europe, was calculated at €688.50 ($795.59) per tonne on June 9, down by €3.50 per tonne from €692.00 per tonne on June 8.
The index was up by €1.00 per tonne week on week but down by €1.08 per tonne month on month.
The Italian HRC market was also quiet, with no major transactions heard during the day.
The most recent offers were reported at €700-710 per tonne delivered (€685-695 per tonne ex-works) versus indications for achievable prices heard at €665-680 per tonne ex-works.
Fastmarkets’ daily steel hot-rolled coil index, domestic, exw Italy, was calculated at €681.88 per tonne on Tuesday, up by €1.05 per tonne from €680.83 per tonne on Monday.
The index was up by €4.38 per tonne week on week but down by €4.47 per tonne month on month.
“Transactions are so narrow that it is really difficult to report the price, which in general I would consider stable,” a buyer source said. “Everybody is waiting for the pricing increase to come through as soon as the safeguards come into effect. Depending on product, [price changes are] expected between the middle of July and the beginning of August.”
The import trade was largely said to be muted, with rumors heard about cancellations of some recent Indonesian HRC deals.
Northern Europe domestic HRC prices slip amid weak demand; Italian market up on latest offers
Prices for domestic steel hot-rolled coil (HRC) decreased slightly amid slow market activity in Northern Europe, while prices in Italy increased on the latest offers, sources told Fastmarkets on Wednesday June 10.
In Northern Europe, a buyer source reported an indication at €680 ($786) per tonne ex-works and an offer at €750 per tonne ex-works for August-September delivery on Wednesday.
The offer was given zero tonnage due to its delivery time exceeding the six-week window determined by Fastmarkets’ methodology.
A second buyer source reported an indication for achievable levels at €670-685 per tonne ex-works, an offer at €700-705 per tonne ex-works and higher offers at €720-750 per tonne ex-works for July orders. The higher offers were given zero tonnage due to a lack of buying interest at that level.
Sources said consumption was “not good,” while weak demand continued to weigh on market sentiment.
Fastmarkets’ daily steel hot-rolled coil index domestic, exw Northern Europe was calculated at €686.67 ($792.95) per tonne on June 10, down by €1.83 per tonne from €688.50 per tonne on June 9.
The index was down by €3.33 per tonne week on week and down by €2.91 per tonne month on month.
In Italy, HRC offers were heard at €680-695 per tonne ex-works, while indications ranged €665-685 per tonne ex-works on Wednesday.
One mill source also reported a lower indication at €670 per tonne delivered (€655 per tonne ex-works), but other sources said it was probably linked to stock material, with one source saying that this level was “impossible for primary production.”
Fastmarkets’ daily steel hot-rolled coil index, domestic, exw Italy was calculated at €685.00 per tonne on Tuesday, up by €3.12 per tonne from €681.88 per tonne on Monday.
The index was up by €12.25 per tonne week on week but down by €1.35 per tonne month on month.
European domestic steel CRC, HDG prices stable, import sector quiet
European domestic prices for steel cold-rolled coil (CRC) and hot-dipped galvanized coil (HDG) were largely stable in the week to Wednesday June 10, although the import markets for these products were extremely quiet because sector participants were waiting for clarity on the new safeguarding measures that the EU intended to impose, starting on July 1.
In Northern Europe, indications of tradeable prices for both CRC and HDG were heard at €800 ($924) per tonne ex-works.
Market participants noted that the lack of available imported CRC, as well as the fact that the price of annealing was included in the production of HDG and was not an extra, made the price for these two products equal, when normally HDG costs €10-20 per tonne more.
Fastmarkets’ weekly price assessment for steel cold-rolled coil, domestic, exw Northern Europe, was €800 per tonne on June 10, narrowing from €790-810 per tonne on June 3.
The corresponding price assessment for steel hot-dipped galvanized coil, domestic, exw Northern Europe, was also also €800 per tonne on June 10, similarly narrowing from €790-810 per tonne on June 3.
In Southern Europe, Fastmarkets’ weekly price assessment for steel cold-rolled coil, domestic, exw Southern Europe, was €800-820 per tonne on June 10, while the weekly price assessment for steel hot-dipped galvanized coil, domestic, exw Southern Europe, was at the same level, both unchanged week on week.
In the import sector, no new offers were heard during the week, with buyers preferring to wait and watch until country-specific quotas under the new safeguards became clear.
European steel industry attracts new investment
Despite Europe’s steel industry remaining beset by demand destruction and high energy prices, recent policy measures have made the region more attractive for investment, panellists said at the Kallanish Europe Steel Markets 2026 in Vienna.
GMK Center chief executive Stanislav Zinchenko said steelmakers have a unique opportunity to use improving margins to modernise and decarbonise assets. He estimates that industry margins could double by 2027 compared with 2025 levels. Higher profitability could make capacity restarts and new investments more attractive.
However, new investments could cause a supply imbalance. Zinchenko highlighted around 14 million tonnes/year of potential additional flat steel capacity from greenfield developments. “What will Europe do with all this new capacity?” he asked.
Banks are supplying financing, but the steel sector is struggling to compete with “more sexy” sectors such as AI, noted ING Bank director Matthias Winkeler.
Policy support is increasingly key to securing finance, he noted. The greater the certainty of protective policies such as the Carbon Border Adjustment Mechanism (CBAM), the more confidence banks had that steel companies would be able to repay their loans.
There are opportunities for specific investments in certain products. Poland’s Huta Częstochowa plant has been revived by Weglokoks with investment from Poland’s Ministry of Defence, noted Adrian Sienicki, vice president of Weglokoks.
The company saw a specific opportunity in steel plate and restored a bankrupt plant. Although defence is a key target sector, it is only expected to account for 7% of sales, and 12% of margins at most.
Another 10% of volumes would be to the energy sector, while the construction and infrastructure industries would be the biggest customers.
GMH Gruppe director of sustainability and communications, Luciana Filizzola, noted that investment in specific products was key. GMH has bought two companies which it is currently integrating in order to produce die-casting and tool steel. This high-tech steel production means the company can export to China, she noted.
However, she warned that one of the key risks to Europe’s steel industry is that the energy prices are too high. This means that even with CBAM and other measures, it is very difficult for European producers to compete on international markets.
Author: Tomas Gutierrez
WV Stahl: A permanent reduction in electricity prices is essential
Confindustria calls for pragmatic EU ETS reform to protect industrial competitiveness
Antonio Gozzi, special advisor for European strategic autonomy, competitiveness and the Mattei Plan at Confindustria, the main association representing manufacturing and service companies in Italy, has once again drawn attention to the need for a revision of the EU Emissions Trading System (ETS), stressing the importance of correcting certain mechanisms which currently risk undermining the competitiveness of European industry. He made the remarks in Brussels during a Confindustria press conference dedicated to the issue.
According to Gozzi, the ETS has played an important role in the decarbonization path of European industry, but developments in recent years have made pragmatic action necessary. Since 2017, he recalled, the price of CO₂ has risen from around €5-8 per metric ton to nearly €100 per metric ton, leading to a sharp increase in costs for the European production system. This increase, he pointed out, has no equivalent in the main competing economies: in markets such as California, for example, the carbon price stands at around $25 per metric ton.
Gozzi also underlined that the impact of the ETS does not concern only companies’ direct emissions but is also reflected in electricity costs. According to various estimates, the mechanism contributes around €25-30/MWh to electricity prices during the hours when prices are set by gas-fired thermoelectric plants. This is a particularly significant factor in Europe, he noted, where energy prices are already substantially higher than in other major economic areas.
For this reason, Confindustria is calling for a pragmatic revision of the ETS, with action on the mechanisms that have contributed to excessively reducing the availability of allowances and increasing costs for companies, while not calling into question the decarbonization targets. “It is positive that the issue has finally entered the European debate,” Gozzi stated, reiterating that the goal must be to combine ecological transition and industrial competitiveness, while preventing European companies from being placed at a disadvantage compared to their international competitors.
Gozzi’s latest remarks are part of a debate that had already emerged in recent weeks, when he repeatedly highlighted the critical issues surrounding the ETS and the need to correct its impact on European industry. The issue falls within a broader context of growing pressure over energy and regulatory costs, which, according to Confindustria, must be addressed through measures capable of supporting the transition without jeopardizing the industrial resilience of the continent.
Author: SteelOrbis Editorial Team
