Category: Latest Updates

Italian coil prices are stable week-on-week, with subdued activity reported across the value chain, Kallanish notes.

Demand remains weak and limited to small tonnages. Service centres report similar conditions in the sheet segment, with high inventory levels slowly absorbed by the current real demand.

Both coil buyers and derivative consumers are adopting a cautious, wait-and-see approach amid negative sentiment linked to the US-Iran conflict, which is driving up logistics and energy costs.

Indexed HRC contracts continue to cover most service centres’ requirements, with spot purchases limited to small volumes to fill gaps in the stocks.

On the import side, transactions are limited to delivered duty paid (ddp), with traders assuming CBAM risk. However, traders are raising ddp offers to about €700/tonne ($810.73/t) while alternative sources are scarce. Turkish material is offered at around €620/t cif or slightly below, but buyers must pay duties and CBAM costs on top, as the quotas are exhausted.

As a result, import prices are currently uncompetitive compared to domestic, and buyers are largely staying away from imports.

One source notes that the conflict, combined with a potential revision of the ETS that could alter CBAM calculations, is once again reshaping the context. Another questions the viability of the upcoming safeguard measures, warning that in a market already plagued by sharp cost increases linked to the war, and stricter quotas could risk bringing activity to a standstill.

Several sources confirm that end-users are already changing their purchasing behaviour. Faced with rising costs, buyers are reducing volumes and focusing on short-term needs. “Given how rapidly the international situation has changed, planning has become extremely difficult. Implementing strict safeguard measures in this context would have a significant impact across the entire value chain,” one buyer says.

Downstream, hot-rolled sheet prices are also stabilising at €770–780/t ex-works, with service centres targeting €800/t. The brief uptick in demand seen following the conflict has now faded. Customers are relying on inventories purchased at lower price levels. They have limited visibility and increasing difficulty in passing on further price rises.

Market participants express growing concern that the current wave of sharp increases, combined with the loss of the Middle East market, could weigh on the downstream “Made in Italy” manufacturing sector, with potential repercussions upstream.

 

The European Steel Association (EUROFER) stated that the latest OECD data released in Paris confirms the deepening global steel crisis and called on the European Union to swiftly implement new steel trade measures.

According to OECD data, global steel overcapacity reached approximately 640 million mt in 2025, exceeding total OECD steel production by more than 200 million mt. During the same period, global steel production capacity rose to a record level of 2.4 billion mt.
Axel Eggert stated that the OECD findings clearly show that global steel overcapacity is not only at high levels but continues to increase, adding that this situation poses a serious threat to steel production, investments, and employment in Europe.
EUROFER emphasized that the new EU steel trade measure, currently under negotiation, is critical to preventing further market instability. The proposed system is said to include a tariff-rate quota (TRQ) mechanism aimed at keeping imports at controlled levels without completely halting them, thereby protecting the EU market against global overcapacity and trade diversion.
The association warned that any weakening of the measure would reduce its effectiveness, while also pointing out that the current safeguard measures are set to expire in June. Eggert called on EU negotiators not to dilute the new trade measure and to implement it without delay.
EUROFER cautioned that any resulting gap could leave the European steel market vulnerable at a critical time.

 

thyssenkrupp Steel is investing in a new test laboratory at its Schwelgern site in Duisburg, Germany, as part of its transition to climate-neutral steel production. With this investment, the company aims to expand the capacity of its existing metallurgy laboratory and strengthen the raw material testing infrastructure required for the direct reduction (DR) plant it plans to commission in the future.
According to the statement, the contract for the new laboratory investment has been awarded to Heat & Power, which previously designed and built a pilot sinter plant for thyssenkrupp Steel. The total value of the project is reported at EUR 2.4 million.
The existing metallurgy laboratory at Schwelgern already provides comprehensive testing capabilities for traditional blast furnace raw materials, including sinter, iron ore pellets, lump ore, and blast furnace coke. With around 2,000 tests conducted annually, the facility serves as a key component of quality assurance across the blast furnace production chain. The new investment will expand this capacity in line with the requirements of hydrogen-based direct reduction.
The direct reduction process differs significantly from the conventional blast furnace route. While blast furnaces operate with carbon monoxide-rich gases at temperatures well above 1,000°C, direct reduction takes place at around or below 1,000°C in a hydrogen-rich gas environment. As a result, the performance of pellets and lump ore must be tested in accordance with ISO standards tailored to direct reduction conditions.
Under the new laboratory setup, the behavior of raw materials in direct reduction conditions will be analyzed in detail, including their tendency to stick or agglomerate during reduction, degradation rates, and reducibility characteristics. Reducibility is particularly critical, as it directly impacts reaction rates and overall plant efficiency.
Marco Richrath stated that the new DR laboratory will enable the analysis of raw materials under realistic hydrogen-based conditions, adding that the results will provide a solid basis for both iron ore quality assessment and the stable and efficient operation of the future direct reduction plant.
The testing environment will be designed to reflect future production conditions. While hydrogen content in blast furnace process gases is currently around 2%, it has already reached approximately 45% in direct reduction testing. The company plans to gradually adjust testing conditions to higher hydrogen concentrations in line with increasing hydrogen usage. Test furnaces will also allow steam injection, enabling more comprehensive analysis of raw material behavior during reduction.
A key element of the company’s future production strategy is the integrated use of a direct reduction plant with electric remelting furnaces. This approach will allow the use of both DR-grade pellets and conventional blast furnace pellets. The application of specialized slag metallurgy in electric remelting furnaces will enable the removal of impurities in pig iron, providing greater flexibility in raw material sourcing.
The limited systematic testing to date of blast furnace pellets under direct reduction conditions increases the importance of laboratory-based quality assurance. With the new facility, thyssenkrupp Steel aims to carry out these assessments in-house.
Alongside the laboratory investment, the company is also placing emphasis on training programs to enhance employee technical capabilities. Laboratory teams will undergo comprehensive training in the use of new testing equipment, data analysis, and the safe handling of hydrogen-containing gases.
The new DR laboratory is set to become a key infrastructural milestone in thyssenkrupp Steel’s green transformation, supporting the transition to direct reduction and electric melting processes and playing a critical role in adapting the Duisburg production network to climate-friendly steelmaking.

 

SSAB has released its 2025 annual report, outlining both its financial performance and the progress achieved in its transition toward fossil-free steel production. The report, published on March 17, 2026, highlights that despite weak global steel demand and ongoing geopolitical uncertainties, the company has remained aligned with its strategic objectives while advancing its green steel vision into a tangible business model.

The company’s financial results point to a relatively resilient performance under challenging market conditions. SSAB reported total revenue of SEK 96.2 billion for 2025, while operating profit (EBIT) reached SEK 6.1 billion. Earnings per share stood at SEK 4.92, and the board proposed a dividend of SEK 2.00 per share. Strong operating cash flow of SEK 7.6 billion underscored the company’s solid balance sheet, with officials emphasizing that its premium product strategy and geographic diversification helped offset the impact of lower market prices.
In terms of market positioning, SSAB maintained its leadership in the advanced high-strength steel (AHSS) segment, holding an estimated 20% global market share. The company continues to benefit from strong customer loyalty driven by brands such as Hardox and Strenx, enabling higher value-added offerings. Premium products accounted for 55% of total shipments, remaining a key driver of margins.
As part of its “Accelerating Premium Leadership” strategy, SSAB updated its targets, aiming to increase the share of premium products to 65% by 2030 and 75% by 2035. The company also made progress in operational excellence, achieving its lowest-ever lost time injury frequency rate of 0.56 in 2025, reflecting continued improvements in safety and efficiency across its operations.
Investments in fossil-free steel production remain central to SSAB’s transformation strategy. At its Oxelösund site in Sweden, construction of a new electric arc furnace (EAF) to replace blast furnaces is progressing as planned, with operations expected to begin in early 2027. Meanwhile, the Luleå mini-mill project stands out for its environmental impact, with the potential to reduce Sweden’s total carbon emissions by approximately 7% upon completion.
Strategic partnerships across the value chain also featured prominently in the report. Volvo Cars is set to become the first automaker to use “SSAB Zero™” in serial production, alongside initiatives to recycle high-quality scrap from its operations. Toyota Material Handling Europe secured supply agreements to support its low-carbon manufacturing goals, while collaborations with Alfa Laval and Outokumpu aim to reduce the carbon footprint of heat exchanger steel by up to 60%.
Overall, the report indicates that SSAB, leveraging its expertise since 1878, is not only maintaining financial resilience but also strengthening its position as a key player in the global transition toward low-carbon steel production.

 

Acerinox’s 2025 financial results demonstrated that the company delivered a resilient performance despite ongoing volatility and pricing pressures in the global steel sector.

Total revenue reached EUR 940.7 million, while operating profit was recorded at EUR 266.2 million. Net profit for the period increased to EUR 202.3 million, marking a strong rise compared to the previous year. Based on this performance, the Board of Directors is preparing to propose a dividend distribution of EUR 0.62 per share to the General Assembly.
On the operational side, cash generation capacity stood out. Cash flow, which reached EUR 330.9 million, indicated that the company maintained balance sheet resilience and preserved financial flexibility. Dividend income from group companies remained a key component of the revenue structure, while significant impairment charges recorded during the year were among the factors putting pressure on profitability. Nevertheless, the company delivered a balanced financial outlook supported by a strong revenue mix.
Assessments of its market position showed that Acerinox continues to be a strong player in the stainless steel and high-performance alloys segment. The company operates across a wide geographical footprint, particularly in the United States, Europe, and Africa, and maintains its competitive advantage through a focus on high value-added products. Alloys used in aerospace, energy, and advanced engineering applications play a critical role in the company’s growth strategy.
In this context, the acquisition of Haynes International completed in 2024 stands out as a strategic move that strengthens Acerinox’s position in the high-performance alloys segment. Through this acquisition, the company expanded its presence in the U.S. market while also broadening its customer base in aerospace and advanced technology sectors.
Within the strategic transformation process, portfolio optimization also emerged as a key focus area. The sale of the Malaysia-based Bahru Stainless subsidiary was considered part of the strategy to exit low value-added production and shift towards higher-margin segments. With this step, the company aims to reshape its presence in the Asian market into a more selective and efficiency-driven structure.
On the financial structure side, Acerinox maintained its strong capital base. As of 2025, total assets stood at EUR 2.88 billion, while equity increased to EUR 1.12 billion, supporting the company’s financial strength. A controlled leverage profile was maintained, while financing costs and foreign exchange impacts remained manageable throughout the year.
Meanwhile, the company continued to actively manage its investment and financing activities. Significant investments were made in subsidiaries during the year, while a balanced structure was maintained on the financing side through repayments. Dividend payments also remained a key component in terms of shareholder returns.
Overall, the picture indicates that Acerinox, which has been operating since 1970, not only strengthened its financial performance in 2025 but also accelerated its strategic transition towards a higher value-added, globally competitive, and sustainable business model. The company’s strong subsidiary structure, broad geographic footprint, and investments in the high-performance alloys segment stand out as key drivers supporting its growth potential in the coming period.

 

The European Union’s Carbon Border Adjustment Mechanism (CBAM) is gaining momentum, with significant developments emerging regarding both its pricing framework and scope.

The European Commission announced that the first carbon certificate price under CBAM will be published on April 7, 2026. Prices will be calculated in the first calendar week following each quarter and shared publicly on the first business day of the following week. This marks a shift from CBAM being a theoretical regulation to generating tangible costs for companies.
Meanwhile, expanding the mechanism’s coverage remains a top priority on the EU agenda. A proposal presented by the Commission in January foresees CBAM extending beyond primary products to include downstream goods. Approximately 180 new products are expected to be added to the system, with the main goal of preventing regulatory circumvention. If consensus is reached among stakeholders, this expansion is expected to come into effect on January 1, 2028.
On the political side, the process continues to progress in the European Parliament. Mohammed Chahim has been reappointed as CBAM rapporteur and has invited stakeholders to share their views and proposals. This underscores the important role that sector feedback will play in shaping the final regulation. In his role as rapporteur, Chahim is recognized as a key figure supporting a fair industrial, energy, and climate transition under the European Green Deal while overseeing the CBAM regulation aimed at preventing carbon leakage.
In terms of the implementation timeline, 2026 and 2027 will be critical transition years for companies. Under the 2026 schedule, the first carbon certificate price will be announced on April 7, followed by the second-quarter price on July 6. A major infrastructure milestone is set for September 30, 2026, when CBAM verifiers can request access to the system, with the third-quarter carbon price shared publicly on October 5.
From January 1, 2027, a 20% adjustment for default values (excluding fertilizers) will take effect, and fourth-quarter prices will be published on January 4, followed by weekly updates. The deadline for the first-quarter CBAM certificate holding requirement is March 31, while the first annual declaration for 2026 imports is scheduled for September 30. The deadline for the resale of surplus certificates is October 31, and their cancellation will take place in November. At the end of the year, in December 2027, a report evaluating CBAM’s impact on carbon leakage will be published alongside a revision report on default values and sector-specific adjustment rates.
The implementation of CBAM is expected to increase import costs and alter competitive dynamics. With the planned scope expansion in 2028, not only raw steel but also processed products are expected to be subject to carbon costs.

 

The CLEPA stated that China’s surpassing of the European Union (EU) in value-added production threatens Europe’s global leadership in the automotive sector.

For decades, Europe’s automotive supply industry has maintained a strong trade surplus as a driver of global value creation; however, today this engine is approaching a standstill.
The most striking shift is taking place in production value. China has rapidly expanded its capacity and now produces nearly twice the value-added output of the European Union. This growth, combined with rising imports from low-cost centers, is actively eroding the trade surplus that forms the backbone of Europe’s industrial strength. At the same time, a decline is being observed in exports to traditional markets such as the United Kingdom and the United States.
Benjamin Krieger, Secretary General of CLEPA, noted that these trends are rapidly undermining Europe’s role as a global powerhouse in automotive components. Krieger emphasized that, in order to remain competitive, the EU must preserve its manufacturing capacity, address structural cost disadvantages and implement targeted measures that support investment in domestic production. He warned that without decisive action, thousands of jobs could be lost and European companies may relocate their production outside the region.
As China’s automotive supply sector grows faster than ever, European suppliers are coming under increasing competitive pressure. Krieger stated that, for Europe to remain a key production hub, policies must be implemented to enhance competitiveness and ensure a level playing field for suppliers.
CLEPA announced that, under the Industrial Accelerator Act, it has set a balanced strategy as its main objective, aiming to preserve Europe’s industrial strength while promoting employment and investment.

 

According to the statement made by the chair of the OECD Steel Committee, Sheryl Groeneweg, after its 99th Session on March 23-24, 2026, in Paris, which brought together 288 government officials and industry representatives from 42 delegations, global steel markets are under renewed strain as excess capacity continues to expand, Chinese exports reach record levels and demand remains subdued, raising serious concerns regarding the long-term sustainability of the sector.

Global steel demand remains under pressure

The OECD Steel Committee stated that global steel demand has declined for four consecutive years, with the contraction exceeding two percent in 2025. Although a modest recovery is expected in 2026, the outlook remains uncertain, particularly due to geopolitical risks linked to the Middle East.

China’s steel demand is expected to continue its structural decline, albeit at a slower pace compared to the estimated 6.5 percent drop recorded in 2025. Meanwhile, the OECD region is projected to experience only a partial recovery, after a 1.5 percent decline last year. In contrast, emerging regions such as India, Southeast Asia and the MENA region continue to demonstrate relatively stronger growth potential.

Global excess capacity reaches record levels

Global steel excess capacity increased to 640 million mt in 2025, exceeding total OECD steel production by more than 200 million mt, according to the OECD Steel Committee. At the same time, global steelmaking capacity rose for the fourth consecutive year, reaching 2.445 billion mt.

The divergence between regions has become more pronounced, with capacity contracting in OECD countries while expanding significantly in non-OECD economies. Growth has been particularly notable in India, Southeast Asia and the Middle East, especially Iran. The committee emphasized that continued over-investment is further exacerbating oversupply and intensifying global trade tensions.

China’s exports reshape global trade flows

The OECD Steel Committee reported that China’s steel exports reached 131 million mt in 2025, marking a record high and nearly doubling over the past three years. As domestic demand weakens, Chinese producers are increasingly redirecting surplus output to international markets. This trend has placed considerable pressure on producers in Europe, North America and Latin America, whose export volumes have declined in recent years as a result.

Trade measures rise but face circumvention challenges

Trade defense measures have continued to intensify globally, with governments increasingly relying on antidumping and countervailing duties, tariff-rate quotas and national security-based restrictions.

In 2025, a total of 75 new antidumping and countervailing duty investigations were initiated. However, the OECD Steel Committee noted that the effectiveness of these measures is being undermined by growing circumvention practices. These practices include the rerouting of steel through third countries, particularly in Southeast Asia, minor modifications to products to bypass tariffs, overseas investments aimed at changing the origin of steel, and the export of steel embedded in downstream products that are not subject to trade measures.

Subsidies continue to distort competition

The committee highlighted that market-distorting subsidies in the steel sector continue to increase, particularly outside the OECD region. According to the latest data, the median Chinese steel company received 15 times more subsidies relative to its asset size than firms elsewhere in 2024, compared to ten times in previous years. Additionally, China’s subsidy rate has nearly doubled since 2019, while 59 new provincial and municipal subsidy programs were introduced in 2025.

The committee also pointed out that capacity replacement programs aimed at reducing emissions are not resulting in net capacity reductions, as new low-emission capacity is being added without fully retiring existing facilities.

Energy security and geopolitical risks in focus

Amid ongoing geopolitical tensions, particularly in the Middle East, the OECD Steel Committee emphasized the growing importance of energy and raw material security. Ensuring affordable, stable and reliable energy supply has become a key priority for maintaining industrial competitiveness and safeguarding national economic security. These concerns are expected to remain central to policy discussions in the near term.

Call for stronger international coordination

The committee stressed that existing policy tools are insufficient to fully address the scale of the global steel crisis. In this context, delegates welcomed the ongoing efforts of the Global Forum on Steel Excess Capacity (GFSEC), which is working to develop a comprehensive framework for coordinated action by June 2026. This framework is expected to include enhanced monitoring of non-market practices, improved import surveillance mechanisms and stronger measures to combat trade circumvention.

 

According to the Economic and Steel Market Outlook 2026-2027/Q1 2026 Report from the Economic Committee of the European Steel Association (EUROFER), in the third quarter of 2025 automotive output in the EU increased slightly by one percent year on year, compared to the 4.2 percent drop in the previous quarter.

Ongoing supply chain bottlenecks that continue to delay orders, combined with war-related disruptions, weak consumer confidence, limited growth in disposable incomes and broader economic uncertainty, kept EU car demand under pressure in 2025. Nevertheless, a slight improvement has been observed in the first four months of this year, while total new car registrations in the EU increased by 1.8 percent year on year in 2025, although volumes remained significantly below pre-pandemic levels.

The automotive sector expects a limited output recovery for 2026, with growth of 0.9 percent, followed by a moderate increase of 1.7 percent in 2027. Despite this, output levels are forecast to remain well below those recorded in 2019.

A full recovery in global trade and external demand from key markets, particularly the United States and China, appears unlikely in the near term, given intensifying global trade tensions. This includes the recent introduction of 15 percent US tariffs on EU car exports. As a result, significant challenges are expected to persist, especially the continued rise in Chinese electric vehicle exports to the EU and the negative impact of newly imposed US tariffs on EU-made cars, which are likely to substantially affect EU exports to the US.

 

Austria-based Benteler Group has announced a €17 million investment to expand tube production capacity at its Schloß Neuhaus plant in Paderborn, Germany.

The investment is part of the company’s strategy to strengthen its Steel/Tube division and reinforce its position among Europe’s leading producers of seamless and welded steel tubes.

Capacity increase to meet automotive demand

The expansion is expected to increase production capacity at the site by approximately 15 percent, allowing Benteler to respond more efficiently to rising demand, particularly from the automotive sector.

The project focuses on seamless and cold-drawn tubes used in applications such as airbag tubes and rotor shafts.

New production line and equipment upgrades

The investment includes the installation of a new production line for drawn tubes, incorporating drawing preparation, a drawbench and additional heat treatment capacity. The project also covers integrated systems for straightening, testing and cutting, along with upgrades in quality control, preservation and packaging processes. The drawbench is scheduled to become operational by the end of May, while additional capacity for cutting short tube sections will also be introduced.

Currently, the Schloß Neuhaus facility produces around 160,000 mt of tubes annually, with approximately 250,000 tubes manufactured and delivered to customers worldwide on a daily basis.

Continued investment in German operations

Benteler confirmed its long-term commitment to the Paderborn region, highlighting sustained investment in its local operations. Since 2022, the company has invested more than €30 million annually, with total investments expected to exceed €50 million in 2026, driven by ongoing expansion in its Steel/Tube division.