Category: Latest Updates

The German government has expressed unified support for the EU Automotive Package, endorsing the inclusion of low-carbon materials such as green steel as part of compliance mechanisms. The position was confirmed following a coalition committee meeting held on April 10.

Under the framework, which was proposed in late 2025, carmakers would be required to achieve a 90 percent reduction in tailpipe emissions from 2035 onwards. The remaining 10 percent of emissions could be offset through the use of low-carbon steel produced within the EU, as well as e-fuels and biofuels, providing additional flexibility in meeting climate targets.

Industry sees demand boost for low-emission steel

The German Steel Federation (WV Stahl) welcomed the proposal, particularly the crediting mechanism for low-emission steel.

Industry representatives noted that the measure could simultaneously support the automotive sector’s decarbonization efforts and stimulate demand for green steel, helping to establish a lead market within the EU.

Energy costs continue to pressure industry

Despite policy support, concerns remain over high energy prices, which have been exacerbated by the Middle East crisis. The German government has introduced temporary relief measures, including a reduction in mineral oil tax on diesel and petrol by around 17 cents per liter for two months.

However, industry stakeholders raised concerns over the exclusion of industry from the immediate energy program and warned that energy-intensive sectors such as steel continue to face uncompetitive electricity costs.

Competitiveness at stake

The steel sector has called for the implementation of previously announced support measures, particularly electricity price compensation mechanisms. In addition, industry representatives have proposed the introduction of a guaranteed electricity price of €50/MWh for industrial users, covering all associated costs.

Stakeholders emphasized that such measures are critical to ensuring long-term competitiveness and supporting the transition to low-emission steel production. Without adequate policy support, rising energy costs could undermine both industrial output and decarbonization efforts in Germany’s steel sector.

The Council of the European Union and the European Parliament have reached a provisional agreement on new measures aimed at protecting the EU steel industry from global overcapacity and rising import pressure.

The agreement is designed to address the impact of excess global steel capacity, expected to reach 721 million mt by 2027, which has contributed to increased exports to the EU market and intensified competition for domestic producers. The measures aim to mitigate trade distortions and ensure a more level playing field for EU steelmakers.

As SteelOrbis previously reported, the new measure sets tariff-free quotas at 18.3 million mt per year, with an out-of-quota duty set at 50 percent for 30 categories of steel products imported into the EU. It also introduces a ‘melt & pour’ requirement to improve traceability and transparency of the EU steel supply chain.

The new measure will replace the existing EU steel safeguard, which has since 2018 imposed a tariff rate quota (TRQ) system on 28 product categories, permitting duty-free imports up to a limit before a 50 percent tariff applies.

The agreement also clarifies aspects related to the management of quotas and their allocation among exporting countries. The agreement provides that, during the first year of application, unused import quotas may be carried over from one quarter to the next for all product categories, in order to provide flexibility for economic operators and support supply chains.

Next steps in legislative process

The provisional agreement will now need to be formally approved by both the Council and the European Parliament over the coming weeks, with the aim to ensure its entry into force on July 1, 2026, when the current steel safeguard measure expires.

Once adopted, the measures are expected to play a key role in stabilizing the EU steel market amid ongoing global challenges.

Welcoming the outcome of EU negotiations on a new steel trade measure, the European Steel Association (EUROFER) stated that the agreement will help protect European steel capacity, safeguard over 230,000 jobs and stabilize a sector under pressure from record import levels and global overcapacity. EUROFER emphasized that additional action will be required to ensure the long-term viability of the sector, including measures to reduce energy costs, improve the effectiveness of carbon adjustment mechanisms and address global overcapacity.

The association also called for similar protections to be extended to downstream sectors to support demand across the European steel value chain.

EUROMETAL, the European Federation of Steel Distributors, Traders and Service Centres, together with national federations and steelmakers, has launched a Call to Action to Safeguard the European Steel and Metals Industry, bringing together a broad coalition of stakeholders across the entire value chain.

As of today, the initiative has already gathered more than 300 signatures from individual companies across Europe and 35 national steel associations, demonstrating an unprecedented level of alignment within the sector. The full list of signatories is available on the EUROMETAL website.

European industry at a critical turning point

The signatories warn that the European steel and metals ecosystem is facing increasingly severe pressures, including rising volumes of processed products imports, global trade distortions and protectionist measures by third countries and persistently high energy and regulatory costs in Europe.

These developments are putting at risk the entire European value chain — from steel production to distribution, processing, and manufacturing end-users.

Without immediate and decisive action, the European Union faces an accelerating process of deindustrialisation, with profound economic, social and strategic consequences.

A unified call for urgent EU action

The initiative calls on the EU Member States and European Commission to act swiftly and decisively to safeguard the European steel and metals value chain.

The signatories underline that effective and immediately applicable trade measures are needed now, aligned with those already implemented by major trading partners such as the United States and Canada.

At the same time, they stress that EU climate ambitions must be preserved, but within a framework that ensures global competitiveness and enables European industry to decarbonise without losing ground to unfair competition.

Safeguarding the entire value chain

A central message of the initiative is that the entire European steel and metals value chain is at risk and requires immediate support.

From production, through distribution and service centres, to processing industries and into manufacturing sectors, this interconnected ecosystem supports millions of jobs and underpins Europe’s industrial resilience.

Without swift and coordinated action, the sector risks significant job losses, increased dependence on third countries, and a weakening of Europe’s strategic autonomy.

________________________________

EUROMETAL calls on National and European policymakers to recognise the urgency of the situation and take the necessary steps to secure the future of the European steel and metals industry.

Over 300 companies and 35 Steel Associations urge immediate EU action

steelindustrynow.eu

Italian passenger car production decreased last year but it increased notably in December 2025 and January 2026, Kallanish learns from preliminary data by automotive association Associazione Nazionale Filiera Industria Automobilistica (Anfia).

In 2025, car output stood at 237,800, down by 23.2% year-on-year. However, in December, the index of Italian automotive production reversed the negative trend of the previous three months, recording growth of 13.5%, according to director general of Anfia, Gianmarco Giorda in a note. In December car output stood at 21,600, jumping by 104.3% compared to the same period in 2024.

By comparison, last year the UK recorded an 8% y-o-y decline to 717,400 cars. Spain saw a production decrease of 5.7% to 1.8 million units. German production ticked up by 2% in 2025 to 4.2m units, Anfia says. The most recent data indicates that French car production during January-September experienced a y-o-y increase of 5% to 748,700 cars.

“From the perspective of annual production volumes, as we have repeatedly stressed, 2025 was an ‘annus horribilis’: vehicle output closed the year down nearly 20% compared to 2024, which had itself already been a difficult year in terms of volumes,” Giorda says.

“The hope for the current year is that, thanks to the allocation of resources earmarked by Mimit’s [The ministry of enterprises and made in Italy] automotive fund at the last automotive roundtable – which will also be dedicated to supply-side support measures – and to the launch of new models expected in 2026, domestic production volumes may soon recover,” they add.

In January the positive production trend in Italy continued. Production increased again by 34.5% to 17,500 cars.

January’s Spanish output ticked up by 2.8% to 136,700 cars while output in the UK and Germany declined by 8.2% to 65,200 cars and by 9% to 305,900 cars, respectively.

The latest US tariff regulation on steel and aluminium will increase the burden on Germany’s mechanical engineering industry, says its association VDMA.

According to a new VDMA survey, the average tariff rate for affected companies has risen from 21% to 26% in a matter of one week, since 6 April, Kallanish hears. “Although the procedures have been simplified, many companies are economically worse off,” says VDMA executive director Thilo Brodtmann. About half of the respondents state they are more heavily affected by the new rules. Only about one fifth see benefits, while one third report no change.

The US Administration claims the revised tariffs would provide relief for Europe. “For the European machinery sector, however, the expected relief has not materialised,” Brodtmann says. VDMA therefore calls on the European Union to secure a binding tariff cap of 15% for the machinery industry in its negotiations with the USA.

European hot-rolled coil prices were little changed on Tuesday April 14. Some low-priced deals for the second quarter delivery coil came to light, although most suppliers indicated higher offers for the third quarter, Fastmarkets heard.

Trading remained thin across the European HRC market on Tuesday. Sources said the level of stock across the supply chain was quite high, which also constrained HRC price growth.

In Germany, deals were heard at €710-720 per tonne ex-works for minor tonnage deals from one supplier – for leftovers of June delivery HRC.

German mills were heard being largely sold out for the second quarter delivery HRC, with indications for July lead time heard at around €750 per tonne ex-works – which was not considered workable by buyers.

One integrated mills in the Benelux area reportedly had technical issues and had no HRC availability for June delivery. Price idea for July lead times was heard at €750 per tonne ex-works.

Workable price levels were voiced at €700-720 per tonne ex-works earlier this week.

As a result, Fastmarkets’ daily steel hot-rolled coil index domestic, exw Northern Europe was €719.17 per tonne on April 14, down slightly from €720.00 per tonne on Monday April 13.

The index was also up by €0.92 per tonne week on week and by €5.60 per tonne month on month.

After the index was published, several sourced reported a large-tonnage deal (around 25,000 tonnes) done at €680 per tonne ex-works by one of the major
European mills in the Benelux area for the second quarter delivery coil.

Sources claimed difficulties with passing higher HRC prices downstream amid slow consumption.

For example, s235 grade of 4 mm HR sheet was still being traded at €770-780 per tonne ex-works in Germany, while sources estimated “adequate” spread between HRC and HR sheet to be at least €100-120 euro. Some sources said, however, that €800 per tonne CPT had being achieved in rare transactions.

“Secondary market can’t catch up with the pace of HRC prices rise. There is still a lot of cheap imports in the market,” a buyer in Germany said.

In Southern Europe, meanwhile, Fastmarkets’ daily steel hot-rolled coil index domestic, exw Italy was calculated at €698.75 per tonne ex-works on April 14, up by €1.11 per tonne from €697.64 per tonne on Monday

The index was up by €0.25 per tonne week on week and by €6.25 per tonne month on month.

Sources in Italy estimated achievable prices for HRC to be around €690-700 per tonne ex-works.

Trading was also limited in the region, with buyers holding sufficient stock and not in a hurry to replenish it.

In the secondary market, sources reported that for 4mm S235 grade hot-rolled (HR) sheet, €800 per tonne CPT was being gradually achieved in deals, with only sporadic deals heard at lower prices of €770-780 per tonne CPT.

Steel service center (SSC) sources indicated that, in order to reflect higher HRC prices, HR sheet prices would need to increase further to €820-850 per tonne CPT. However, the downstream market was slower to follow the upward trend amid strong end-user resistance to higher prices.

Meanwhile, new offers for imported coil have been limited recently amid soaring logistics costs and Carbon Border Adjustment Mechanism (CBAM) and new trade measures uncertainty.

On Tuesday, offers for Turkish coil were reported at €620-630 per tonne CFR to Italy, including anti-dumping duty.

From Algeria, offers were heard around €680 per tonne CFR to Spain, which was deemed unworkable by local buyers.

From India, offers were heard at €600 per tpnne CFR to Italy.

Global steel demand has been forecast to increase by 0.3% to 1.72 billion tonnes in 2026, followed by an ‘accelerated’ growth rate of 2.2% to 1.76 billion tonnes in 2027, according to the World Steel Association (Worldsteel) in its latest Short-Range Outlook (SRO) report published Tuesday April 14.

The report suggested that global steel demand could be bottoming out in the near-term as the industry exits a “protracted and challenging phase of global structural adjustments that has suppressed demand since 2022.”

Worldsteel attributed the anticipated reversal in demand trends to a deceleration in the rate of demand contraction in China and a “vibrant” Indian steel economy helping steel demand over the next couple of years.

The organization acknowledged, however, that the continuing conflict in the Gulf region and the consequent restrictions on commodity flows could act as a caveat to growth in the region.

Several Gulf steelmakers have been heard reducing their output volumes over the last month due to the regional conflict restricting access to seaborne raw materials including iron ore pellet and ferro-alloys, sources have told Fastmarkets.

Major steel mills in Iran have been damaged by strikes and could take up to 6-12 months to recover from the attacks, local news agencies have reported.

Chinese demand deficit to narrow
Worldsteel expects the deficit in Chinese demand to soften in 2026 to -1.5%, citing that the housing market correction may have reached its bottom and infrastructure investments are expected to increase this year.

In 2027, the association expects steel demand in China to plateau relative to expectations in 2026, which they suggest is due to the effects of a real estate industry correction largely expected to be felt in 2026.

Fastmarkets assessed the price of domestic hot-rolled coil, ex-warehouse Eastern China, at 3,280-3,300 yuan ($474-475) per tonne on Tuesday April 14, compared with 3,280-3,290 yuan on March 13, with continuing supply constraints helping to sustain price levels, sources told Fastmarkets.

Market participants said strong slab export momentum – triggered by the shortfall in Iranian supplies since the war, its wide-ranging effects across the Middle East and the subsequent closure of the Strait of Hormuz – had led to a surge in overseas orders that has diverted slab away from the domestic market, thereby lending underlying support to HRC prices.

Indian steel demand to maintain strong trajectory
India, the world’s fastest-growing major steel market, is expected to grow its steel demand by 7.4% in 2026 and 9.2% in 2027, the association said.

Growth in the infrastructure sector and in the automotive industry were cited as key demand drivers in the report, with a nationwide rail-network expansion project supporting steel demand at present.

Indian crude steel output hit 164.9 million tonnes in 2025, up by 10.4% year on year, further cementing India’s rank as the world’s second-largest producer behind China.

The momentum carried into early 2026, with output rising by another 9.7% year on year in January-February, according to data from WorldSteel.

US market expected to grow on private sector investment
The US market is expected to grow by 1.7% this year and by 2.0% in 2027, with Worldsteel suggesting that easing financing conditions and interest rates could support residential construction.

Data center investments in the US have also been supporting steel demand in the region, with US steelmakers facing a “robust opportunity” in the data center construction boom, driven by rapid implementation of artificial intelligence software, according to Barry Zekelman, executive chairman and chief executive officer of Zekelman Industries.

“However, the pace of this rebound is likely to remain constrained by persistent structural challenges, including elevated material costs, high mortgage rates, affordability pressures, and continuing labor shortages. Additionally, demand for durable goods may be tempered amid a softening labor market,” Worldsteel said.

EU, UK demand to reverse course on recently sluggish growth
Worldsteel expects infrastructure and defense spending to support the European and UK markets to grow by 1.3% in 2026 and 3.0% in 2027, in a “long-awaited” return of steel demand growth.

Demand for imports in the European steel markets has dwindled in the year so far since the introduction of steep Carbon Border Adjustment Mechanism (CBAM) costs faced by European importers in January 2026, according to trade sources.

European markets have therefore been more reliant on domestic production, with producers within the EU reporting healthier demand and in turn moving toward greater ferrous scrap demand to feed their growing output, sources said.

EUROMETAL, together with national federations and steel producers, has launched a call for action to protect the European steel and metals industry.

EUROMETAL, representing European steel distributors, traders and service centres, met with members of the press at the Tube & Wire Düsseldorf. During the meeting, EUROMETAL, together with national federations and steel producers, launched a Call to Action to safeguard the European steel and metals industry. The initiative brought together stakeholders from across the entire value chain, forming a broad and unified industry coalition.

According to the statement, the initiative has already secured the support of more than 300 companies and 35 national steel associations across Europe, signalling a strong and coordinated stance within the sector.

Industry representatives highlighted that the European steel and metals ecosystem is under significant pressure due to rising imports of processed products, global trade distortions, protectionist policies by third countries, and high energy and regulatory costs in Europe. These developments were said to put the entire value chain at risk, from production to distribution, processing industries and end users.

The statement warned that without the necessary measures, the European Union could face an accelerating process of deindustrialisation, with far-reaching economic, social and strategic consequences.

Within the scope of the initiative, a call was made to EU Member States and the European Commission to take swift and decisive action. The signatories emphasised the need for effective and rapidly deployable trade measures aligned with those implemented by major trading partners such as the United States and Canada.

At the same time, it was stressed that EU climate ambitions must be preserved, but within a framework that does not undermine the global competitiveness of European industry or create disadvantages in the face of unfair competition.

EUROMETAL underlined that the entire European steel and metals value chain is at risk and requires immediate support, noting that this interconnected structure—from production to distribution, service centres to manufacturing industries—provides employment to millions and forms the backbone of Europe’s industrial resilience.

The statement also noted that without swift and coordinated action, the sector could face significant job losses, increased dependence on third countries, and a weakening of Europe’s strategic autonomy.

EUROMETAL called on policymakers at both national and European levels to recognise the urgency of the situation and take the necessary steps to secure the future of the European steel and metals industry.

Signatories: steelindustrynow.eu

Author: SteelRadar Editorial Team

steelradar.com

The World Steel Association (worldsteel) has announced the admission of several new members, as well as the upcoming appointment of a new Director General.

At its latest Board meeting, worldsteel welcomed the following steel producers as regular members:

• Almaadi Steel (Egypt), represented by Mina Atef HENDY
• Dongkuk Steel Mill Co., Ltd. (South Korea), represented by Samyoung CHOI
• Grupo AG (Guatemala), represented by Rodrigo GABRIEL
• Hydnum Steel S.L. (Spain), represented by Eva MANEIRO
• İÇDAŞ Çelik Enerji Tersane ve Ulaşım San (Türkiye), Akgün FILIZ
• Marcegaglia (United Kingdom), represented by David SCAIFE
• Steel Dynamics (United States), represented by Mark MILLET

In addition, K1-MET GmbH (Austria) has joined as an affiliated member.

worldsteel also announced that Henrik Adam will assume the role of Director General from mid-Q4 2026. He currently serves as Executive Chairman of Tata Steel Netherlands Holding BV and holds leadership positions within EUROFER and the Steel Institute VDEh.

Dr. Adam brings more than 25 years of experience in the steel and automotive sectors, including senior executive roles at Tata Steel Europe and thyssenkrupp. He will succeed Edwin Basson, who will retire after more than 15 years leading the association.

The World Steel Association represents steel producers, national and regional industry associations, and research institutes, accounting for approximately 85% of global steel production.