Category: Latest Updates

Steel heavy plate domestic prices increased in Northern and Southern Europe in the week to Thursday March 12, with some re-rollers already booked until June, market participants told Fastmarkets on Thursday.
They linked the rise to the continuing conflict involving Iran, Israel and the US, which began on February 28 and has pushed up steel slab feedstock and natural gas prices.

Fastmarkets’ weekly price assessment for steel slab import, cif Italy was $550-560 per tonne on Thursday, widening upward by $37 from $523-550 per tonne a week earlier.

Southern Europe
Local deals for steel heavy plate in Italy were reported at €700-770 ($803-884) per tonne ex-works. The range is wide because market sources said buyers were trying to secure deals for April at lower prices, but said the latest levels were starting at €750.

Suppliers stepped out of the market on March 5 because of uncertainty over the conflict’s effect on plate production costs and returned on Wednesday, according to market participants.

“We have closed almost all of April [bookings] last week. Before we have stopped sales, most stockists were on the market trying to secure orders at previous prices. The same strong order intake was reported by competitors,” a producer source told Fastmarkets on Thursday, adding that some plate re-rollers were sold out until May or June.

They said €750 increasingly seemed like the new minimum local price, compared with €700-710 a couple of weeks ago, noting that the overall effect on production costs over the past two weeks has been more than €40 per tonne.

Offers for domestic plate in Italy were at €720-780 per tonne ex-works in the week to March 12, increasing after re-rollers returned to the market on Wednesday, a trader said.

A second trader source linked the rise mainly to the conflict in Iran and reduced plate imports, saying demand was still not good. The producer, however, told Fastmarkets they had been seeing stronger demand for plate recently.

Fastmarkets’ weekly price assessment for steel domestic plate 8-40mm, exw Southern Europe was €730-770 ($706-729) per tonne on Thursday, widening upward by €70 from €700-730 a week earlier.

A producer reported plate imports from South Korea to Spain at €664 per tonne CFR two weeks ago, with offers from Japanese suppliers at similar levels. Other market sources did not report new deals, but said there was plate available in ports.

Plate import activity to Europe has been limited recently because of Carbon Border Adjustment Mechanism (CBAM)-related costs, which vary by origin and leave buyers uncertain about final pricing.

Fastmarkets’ weekly price assessment for steel plate (8-40mm) import, cfr main port Southern Europe was €650-664 per tonne on Thursday, widening upward by €17 from €647-650 per tonne a week earlier.

Northern Europe
Offers for domestic steel plate in Northern Europe were reported at €720-790 per tonne ex-works, but trading activity was muted.

“Market participants are now waiting for next week to see the new price levels,” the producer said.

Fastmarkets’ weekly price assessment for steel domestic plate 8-40mm, exw Northern Europe was €740-770 per tonne on Thursday, narrowing upward by €20 from €720-770 per tonne a week earlier.

Regarding imports, market sources said Indian suppliers were offering plate at €625-629 per tonne CFR Antwerp, but nothing was heard from Indonesia or South Korea and no new deals were reported.

Fastmarkets’ weekly price assessment for steel plate (8-40mm) import, cfr main port Northern Europe was €609-650 per tonne on Thursday, unchanged from February 5.

Local hot-rolled coil prices in Europe extended gains on Friday March 13 amid a mix of factors such as limited supply, increased costs as well as import curbs.
In Northern Europe offers from integrated mills and re-rollers for May and in some cases.

June-delivery coils varied within the range of €700-735 ($807.34-841.94) per tonne ex-works versus €690-735 per tonne ex-works a day earlier.

Market sources reported market leaders achieved €720-730 per tonne in deals for minor tonnages amid limited supply.

Meanwhile, a source from Germany said that several local supplier continued to stay out of the market due to the recent rise in energy and fuel costs triggered by the aftermaths of the US-Iran conflict.

The same source reported some improvement in buying in the recent days caused by expectations of further price rises.

Fastmarkets’ daily steel hot-rolled coil index domestic, exw Northern Europe was calculated at €713.57 ($822.99) per tonne on Friday, up by €6.38 per tonne from €707.19 per tonne on March 12.

The index was up by €13.57 per tonne week on week and by €57.74 per tonne month on month.

Meanwhile, in Southern Europe, Fastmarkets calculated its daily steel hot-rolled coil index domestic, exw Italy at €692.50 per tonne ex-works on March 13, stable day on day.

The index was up by €11.67 per tonne week on week and by €45.00 per tonne month on month.

Offers from local suppliers came at €695-700 per tonne ex-works, while buyers estimated the market levels at €680-690 per tonne ex-works.

Import continued to be restricted by a number of factors such as higher costs which followed the implementation of the Carbon Border Adjustment Mechanism (CBAM) earlier this year, concerns over reduced import availability in the second half of the year due to new safeguards as well as increased transportation costs and timing, which followed the US-Iran conflict.

Energy-intensive industries in Europe have urged the European Commission to prioritize competitive electricity prices and investment support in the upcoming EU Electrification Action Plan (EAP), warning that persistently high energy costs threaten industrial competitiveness and decarbonization efforts.

In a joint position paper, industry groups representing sectors such as steel, chemicals, metals, cement and paper said the EU’s economic and energy outlook is putting industrial electrification investments at serious risk unless electricity prices are brought down.

The industry groups, including EUROFER and European Metals, said the Electrification Action Plan should first focus on restoring competitive electricity prices for industrial consumers. According to the position paper, reducing electricity costs is essential for maintaining Europe’s industrial base while pursuing climate neutrality.

Accelerating electrification and energy integration

In addition to lowering power costs, the industry groups recommend several structural measures, including creating better conditions for industrial electrification investments, accelerating development of the EU Single Market for Energy, expanding cross-border electricity interconnections, and increasing system flexibility through renewable and low-carbon energy sources.

They argue that improved flexibility and stronger cross-border electricity trading could help reduce energy price disparities between EU member states and improve overall system efficiency.

Industry stakeholders warn that Europe risks losing competitiveness globally if electricity prices remain structurally higher than in other regions. They emphasize that the Electrification Action Plan should support both climate objectives and industrial competitiveness, ensuring that energy-intensive sectors can continue operating while transitioning toward lower-carbon production technologies.

Author: SteelOrbis Editorial Team

steelorbis.com

According to Paris-based think tank the Institute for Climate Economics (I4CE), proposals to weaken the EU’s carbon market rules would represent a strategic mistake.

Economists Benoît Leguet and Jean Pisani-Ferry argue that Europe should instead strengthen the EU Emissions Trading System (ETS) in order to support industrial competitiveness, accelerate technological innovation and maintain global leadership in low-carbon technologies.

EU carbon market central to climate policy

The EU ETS has placed a cap on emissions from European industry since 2005. The system currently covers approximately 40 percent of the European Union’s greenhouse gas emissions, including electricity generation, energy-intensive industries and intra-European aviation.

Under the ETS framework, companies must hold emission allowances for their carbon output. These allowances are tradable, creating a carbon market that provides financial incentives for reducing emissions. Following earlier adjustments, the carbon price has stabilized at roughly €60-€80/mt of carbon in 2025.

System entering new phase from 2026

The carbon market is now entering a new phase that has raised concerns among some industrial producers.

Two major policy changes are scheduled to begin in 2026. First, free emission allowances for energy-intensive industries will start declining more rapidly before being completely phased out by 2034, increasing carbon costs for producers. Second, the EU has introduced the Carbon Border Adjustment Mechanism (CBAM) to prevent carbon leakage. However, the current CBAM framework does not fully address competitiveness concerns faced by European exporters.

Complementary policies needed rather than ETS weakening

According to the I4CE analysis, these challenges should not lead to weakening the ETS itself. Instead, policymakers should introduce complementary policies that protect industry while maintaining the integrity of the carbon market.

One proposed solution is strengthening the CBAM framework or extending it to downstream sectors in order to better address carbon leakage along industrial supply chains without weakening ETS.

Electrification and renewables seen as long-term advantage

The think tank also emphasized that Europe’s long-term industrial competitiveness depends on reducing reliance on imported fossil fuels and accelerating the deployment of low-carbon technologies.

Greater electrification of industrial processes, combined with expanded renewable energy capacity and declining energy storage costs, could create structural advantages for European manufacturers. France, for example, is considered well positioned due to its relatively large supply of low-carbon electricity and biomass resources.

Policy priorities for the next ETS phase

The authors identified several policy priorities for strengthening the system while supporting industry. These include maintaining the planned phase-out of free allowances to provide long-term regulatory visibility, using ETS auction revenues more strategically to fund industrial decarbonisation projects and expanding CBAM coverage to protect European supply chains.

They also warned against introducing a carbon price cap within the ETS. Artificially lowering the price of carbon could undermine investment incentives for clean technologies and weaken the economic case for decarbonisation projects. Instead, the economists suggested that a carbon price floor could provide greater predictability for industry while preserving incentives to reduce emissions.

Author: SteelOrbis Editorial Team

steelorbis.com

According to the Spanish steelmakers association UNESID, in January this year Spain’s steel production totaled 789,000 mt, rising by 15.0 percent month on month and dropping by 24.0 percent year on year.

In the given month, the Spanish steel industry recycled 695,000 mt of scrap to be used for new steel products, up by 20.9 percent compared to the previous month and down by 13.0 percent year on year.

The European longs market has remained “tense and static” this week, with producers’ attempts to raise prices, that continue to fail to appeal to buyers.

In the Italian rebar market, for example, producers have tried to increase price requests by between €30/mt and €50/mt depending on the mill, raising them to a range of €350-360/mt ex-works base (€610-620/mt ex-works including regular extras). However, according to sources, buyers continue to withdraw previous orders at €280-290/mt ex-works base (€540-550/mt ex-works including regular extras). However, volumes available at these prices “are now running out”, a source said. “Producers are worried,” another source commented. “This war [in the Middle East] is having a major influence, investments have collapsed, people are afraid to spend,” he concluded.

Italian producers have chosen to implement various strategies to cope with the high energy prices caused by the war and with demand at an all-time low. Several of them, in fact, have reduced or idled production for varying periods of time, from a few days to over a week, waiting to have a clearer picture of demand.

As far as the wire rod market in Italy is concerned, quotations are still suspended for now. “The situation is tense and demand is still very low. Hopefully local mills will not increase prices too much, otherwise the little demand there is risks disappearing completely,” a market player stated. “Demand remains low,” another source confirmed. “Just as the conflict in Iran has generated increases in energy – and therefore steel – prices, it is now also stopping demand. Unlike 2022 [post-Covid and war in Ukraine], when the market reacted by holding prices, there is now a lot of uncertainty. The market is not responding,” he concluded.

In other European countries, wire rod offers are also temporarily suspended, and a large manufacturer is renegotiating current orders with some customers. As far as rebar is concerned, prices for central Europe are now standing at €580-590/mt ex-works.

Export markets remain silent, while imports from Turkey have recorded some hike attempts due to the influence of freight costs, which are strongly affecting deliveries by vessel. “In addition to the increase in freight costs, deliveries are being delayed by three to four months,” a European trader commented. “Ships are simply impossible to find,” said another.

Import prices from Turkey to southern Europe this week are reported to be standing at around €530/mt CFR for rebar, up by €10-30/mt week on week, while for wire rod they have been reported at around €540/mt CFR, also up by the same range week on week.

€1 = $1.15 (European Central Bank, March 12)

Spanish steel association Unesid has expressed concern about the recent rise in energy costs in Europe and its impact on the competitiveness of the industry, Kallanish notes.

The organisation points out that energy markets have been marked by high volatility in recent days, driven by the current international geopolitical context.

“We are confident that the European Council will adopt measures aimed at mitigating the impact of high energy prices on EU industry at its next meeting on 19 and 20 March,” Unesid states. At the same time, it hopes the Spanish government will promote structural measures to guarantee electro-intensive industries stable access to energy at competitive costs, in line with the policies implemented by other European countries.

Unesid is also concerned about developments in the international geopolitical situation and the possible impact on world trade. Spanish steelmakers stress the importance of preserving the normal functioning of strategic maritime routes, especially transit through the Strait of Hormuz, considered a key route for the global transport of energy and raw materials.

“Any prolonged disruption to this route could cause disruptions in global supply chains, with potential consequences for numerous industrial sectors, including the steel value chain,” Unesid concludes.

Antonio Gozzi, president of Federacciai, is calling for a temporary suspension of the Emissions Trading System (ETS) in Italy where electricity prices are strongly linked to gas costs. This could reduce power prices by around €25/MWh ($29.10/t) while awaiting a broader revision of the mechanism at EU level.

Speaking at a recent energy transition event in Rimini, Gozzi said the EU ETS has gradually evolved beyond a decarbonisation instrument into what he describes as a carbon tax exposed to financial markets.

Amid global uncertainty and rising energy prices for European companies, the impact of the system should be considered carefully.

“No one can accuse the Italian steel industry of being opposed to the energy transition: already today we are among the most decarbonised production systems in the world, with around 85% of steel produced through electric arc furnaces. But decarbonisation must not turn into industrial desertification,” Gozzi warned.

Meanwhile, the proposal for the Industrial Accelerator Act presented by the European Commission represents another missed opportunity to boost the competitiveness of the European steel industry, he added.

The absence of “Made in Europe” criteria for steel is concerning. The Commission believes the steel sector will benefit sufficiently from the new trade regime to be implemented from July. However, this is made to address global overcapacity and cannot replace specific measures to support European production.

“On the issue of ferrous scrap, a strategic resource for circularity and the green transition, the final text has also been weakened. Measures included in earlier drafts aimed at promoting the use of secondary raw materials in Europe and strengthening the monitoring of scrap exports have been removed,” Gozzi states in a note obtained by Kallanish.

Uncertainty also remains regarding the classification of low-emission steel. The Commission has decided not to regulate the voluntary “green” steel label directly and it does not clearly define the methodology to be adopted.

“We reiterate that any criteria must be based exclusively on the actual product carbon footprint, avoiding mechanisms such as the scrap sliding scale, which would unfairly penalise electric arc furnace production, among the greenest and most circular steelmaking routes,” he concludes.

Uncertainty surges in global longs market due to war in Middle East

Due the war in the Middle East, levels of uncertainty have surged in the global long steel products market. Energy prices are flying high, supply chains have been disrupted, bunker oil and freight rates are up and stocks are down. It is too early to predict the overall impact of the war. While concerns regarding deliveries of cargoes originating from regions in the East have helped push prices up in the Western markets, demand is not improving, which comes as no surprise especially when we have no clue about how long this war will continue or to what extent it might spread. Another major question is what will happen to scrap prices.

Investments to be put on hold, no panic purchases despite EU mills’ price hikes

Investments will be put on hold given the high levels of uncertainty all around. EU mills have reacted with price increases but, as the market is still waking up after the winter season, this has not resulted in panic purchases.

Imports into EU risky amid lack of regulatory clarity

Brussels’ incompetence or unwillingness to announce final CBAM regulations and how safeguard measures will be continued after June 2026 makes imports into the EU extremely risky.

Turkish mills face slow local and export demand, adjust capacity usage accordingly

In Turkey, construction activity is slow and exports are down by 20 percent compared to the same period last year. Mills are adjusting their production based on the demand they receive.

US Supreme Court gives some breathing space to importers, but new tariffs likely

The Supreme Court decision in the US against Trump’s tariffs gives a partial breather to importers. However, it will probably not be long before new tariffs will be implemented under different names.

Current market status unstable, outlook unpredictable

It is very difficult to talk about competition under the current levels of protectionism, geopolitical issues and uncertainty in the market. Under the current overall market circumstances, the current status of the market can be described as unstable with an unpredictable and unstable outlook.

irepas.com