Category: Latest Updates

The European Commission has delayed the presentation of new industrial policy measures under the Industrial Accelerator Act (IAA) by one week due to internal disagreements over proposed local-content requirements, according to Reuters.

Originally scheduled for February 26, the proposal will now be unveiled on March 4, according to the office of Commission Executive Vice President Stéphane Séjourné. The postponement aims to allow additional negotiations among member states and stakeholders.

Debate centers on “Made in Europe” sourcing rules

The Industrial Accelerator Act is expected to introduce minimum local-content thresholds for industrial components used in publicly-funded projects across strategic sectors including batteries, solar energy, wind power and nuclear technologies.

The initiative forms part of the EU’s broader Clean Industrial Deal, which seeks to strengthen Europe’s industrial base and competitiveness amid intensifying global competition, particularly from the US and China.

Concerns over competitiveness and investment impacts

However, EU member states remain divided on the proposal. Countries such as France strongly support stricter “buy European” rules to shield domestic industries from lower-cost imports produced under less stringent environmental standards. Other countries, including Sweden and the Czech Republic, have warned that mandatory local-content rules could raise procurement costs, deter investment and reduce the EU’s global competitiveness.

Meanwhile, industry stakeholders such as automotive manufacturers have called for broader eligibility criteria extending beyond EU and EFTA members to include closely integrated supply-chain partners, notably the United Kingdom and Turkey.

Alleima has entered a strategic partnership with Stahl Krebs, a specialty steels distributors located in Solingen, Germany. 

Stahl Krebs will become a key distributor for Alleima’s premium knife steel portfolio, Kallanish hears from the Swedish stainless steel maker.

Solingen has long been the proverbial centre of German cutlery and knife manufacturing. Founded in 1882, Stahl Krebs has supplied generations of professional knife makers, tool manufacturers, and specialist producers with steels and service.

Alleima highlights Stahl Krebs’ deep understanding of knife-steel performance and its well-established distribution network, which makes it a trusted partner in the German knife-making ecosystem.

Through Stahl Krebs, customers will gain direct access to Alleima’s premium knife steel grades, including 14C28N, as well as Damax, Alleima’s industrial-scale Damascus steel featuring up to 135 layers of martensitic stainless steel.

While European coil mills have succeed in exerting gradual price hikes, it is not so clear distributors will be able to pass these on, given the continued low demand environment.

According to a manager at a German distributor, some service centres keep offering bargains to sell from stocks, with offers heard at lower than €670/tonne ($790) for hot rolled coil. “That’s the purchase price for April deliveries; it’s not good, and they really need to stop that,” he tells Kallanish.

The market leader mill recently gave €720/t as the new target for northwestern Europe; at least one other mill gave €700/t, for now. Most transactions these days will be at around €680/t as lead times are stretching towards May.

Strikingly, the market leader defined a higher price for southern Europe, €750, apparently on the grounds of lower availability in the south. Observers point to the stoppage at the mill in Gijón, Spain, which occurred shortly before the latest price hike announcement. Some meanwhile assume production problems are occurring at the mill in Fos-sur-Mer, France, after a stoppage in December.

Despite these discrepancies – north-south and upstream-downstream – mills’ general price direction is upwards. The uptick trend is seeing “hardly any aggressive counterbids to put pressure on the price level,” a Dutch manager finds. Offers at lower levels are being absorbed quickly, which “indicates that the risk of further increases is considered more serious than the risk of a rapid correction,” he argues.

The Spanish government has awarded to Hydnum Steel (HS) 500 MW of access capacity to the national electricity grid at the Brazatortas node in the Ciudad Real region, Kallanish notes.

HS is building the first “green” steel mill on the Iberian Peninsula, designed to use fossil-free energy throughout the manufacturing process and to gradually incorporate green hydrogen to substantially reduce CO2 emissions. The project is valued at €1.65 billion ($1.94 billion). The plant is expected to become operational in 2026.

“The award represents a decisive step towards the implementation of the HS plant, which is set to become one of the main industrial projects linked to the ecological transition in Castilla-La Mancha,” according to the Ciudad Real government. “It was vital to guarantee the energy viability of the project, as it ensures the necessary supply for the operation of the future green steelworks and provides certainty for a strategic investment in the province.”

The resolution, published on Wednesday in the country’s Official Gazette (BOE), is part of the first tender for access to the transmission network, through which the Ministry for Ecological Transition and Demographic Challenge has awarded a total of 928 MW.

This includes five major industrial projects in Andalusia, Castilla-La Mancha, Catalonia and Galicia, promoted by Hydnum Steel, Stellantis Spain, Atlantic Copper, the energy company Moeve and industrial gas supplier Messer Ibérica.

The reduction in imports was due to the effects of the EU’s new Carbon Border Adjustment Mechanism (CBAM) and expectations of a new trade regime.

Across Northern Europe, more and more sources were reporting improved buying activity in the spot market during the current week.

“Even steel-service centers [SSCs] with reasonable stocks are looking to book [HRC] now, because waiting a couple more weeks would mean paying a higher price,” a mill source in the region told Fastmarkets.

Transactions in Germany and the Benelux area were reported around €685 ($809) per tonne ex-works on Thursday.

Estimates of achievable prices were reported at €670-690 per tonne ex-works for April-May delivery coil, depending on tonnage.

At the same time, offers from integrated mills in the region were heard at €700-720 per tonne delivered (around €680-705 per tonne ex-works), with limited room for discounts. Most sellers claimed to be largely sold out of April-delivery coil.

Italy-origin coil was offered to Germany at €720-730 per tonne delivered, with some April-delivery tonnages said to be still available. But market sources said that Italian suppliers have preferred to focus on domestic sales more recently.

Fastmarkets’ daily steel hot-rolled coil index, domestic, exw Northern Europe, was €685.73 per tonne on February 26, down just by €0.10 per tonne from €685.83 per tonne on February 25.

The index was up by €14.23 per tonne week on week and by €39.48 per tonne month on month.

Market sources said, however, that in the secondary market, prices for 4mm HR sheet were still lagging, with some SSCs selling aggressively at €730-740 per tonne CPT, using old HRC feedstock for production, purchased at lower prices. New offers, however, were heard at prices closer to €800 per tonne CPT, to reflect higher feedstock costs, Fastmarkets heard.

Meanwhile, in Southern Europe, Fastmarkets’ corresponding daily steel hot-rolled coil index, domestic, exw Italy, was calculated at €670.63 per tonne on Thursday, up by €4.80 from €665.83 per tonne on Wednesday.

The index was up by €8.13 per tonne week on week and by €33.13 per tonne month on month.

In Italy, trade sources reported offers of May-delivery HRC at €700-720 per tonne delivered (around €685-705 per tonne ex-works) from integrated suppliers and re-rollers. But workable prices were still reported at €680-690 per tonne delivered (around €665-675 per tonne ex-works).

One buyer suggested €680-685 per tonne ex-works could be achieved for minor tonnages.

While mills were officially holding firm on offers for May lead times, market participants believed that April availability was still possible, with greater flexibility on pricing for earlier delivery.

Meanwhile, in the secondary market, prices for 4mm HR sheet were edging upward, albeit slowly. Official SSC offer prices in Italy were reported at €800 per tonne CPT for S235 grade, although transaction levels were still lagging behind, being negotiated on a case-by-case basis. Market sources indicated achievable prices as low as €750-760 per tonne CPT.

On the import side, options were still limited due to CBAM and a new safeguards regime.

The bulk of second-quarter delivery volumes from Turkey, Saudi Arabia and North Africa were reported to have already been booked by traders, who were now hoping to resell material at €640-650 per tonne DDP or more, CBAM costs included, to mid-sized customers.

Offers from Turkey for end-May-early June delivery HRC were heard around €555-580 per tonne CFR. Several trade sources said that a new round of negotiations for Turkish coil was under way in Europe.

In early February Turkey sold large cargoes of HRC to Europe at around €515-520 per tonne CFR

After the introduction of the EU’s Carbon Border Adjustment Mechanism (CBAM) and other trade regulations, European mills have been pushing for higher offer levels, but it remains to be seen whether the market will accept the new prices, according to sources.

One source in Northern Europe said recent price rises for flat steel products were mainly driven by mills and current demand levels are “not supporting these increases,” with consumption remaining dull.

A second source noted that sentiment remained “bullish” in the market with mills targeting higher levels but activity continued to be slow.

Limited imports and higher trade risks have led domestic mills to aim for higher offers in recent weeks, Fastmarkets understands.

Northern Europe
In Northern Europe, domestic and imported cold-rolled coil and hot-dipped galvanized coil prices were stable.

Fastmarkets’ weekly price assessment for steel CRC domestic, exw Northern Europe was €770-780 per tonne on Wednesday, unchanged week on week.

Fastmarkets’ weekly price assessment for steel HDG coil domestic, exw Northern Europe was €770-780 per tonne on Wednesday, also stable week on week.

Import prices for these products were also unchanged in the reported week, highlighting reduced market appetite and a shift in market dynamics, Fastmarkets understands.

Sources said that with CBAM and heightened risks linked with imported material, buyers were being “very careful” when trading outside the EU.

Fastmarkets’ weekly price assessment for steel CRC, import, cfr main port Northern Europe was €630-660 per tonne on Wednesday, unchanged from the previous week.

The weekly price assessment for steel CRC, import, ddp Northern Europe was €730-770 per tonne, also unchanged week on week.

Fastmarkets’ weekly price assessment for steel HDG coil import, cfr main port Northern Europe was stable at €650-700 per tonne on Wednesday, while the assessment for steel HDG coil import, ddp Northern Europe was €760-770 per tonne, also unchanged week on week.

Southern Europe
In Southern Europe, domestic and imported CRC and HDG coil prices were also broadly unchanged, Fastmarkets heard.

Fastmarkets’ weekly price assessment for steel CRC domestic, exw Southern Europe was €770-780 per tonne on Wednesday, unchanged week on week.

The weekly price assessment for steel HDG coil domestic, exw Southern Europe was also stable at €775-780 per tonne.

Import prices for these products were unchanged in the week to Wednesday, with no new trading reported during the assessment period.

Fastmarkets’ weekly price assessment for steel CRC import, cfr main port Southern Europe was stable at €620-650 per tonne, while the weekly price assessment for steel CRC import, ddp Southern Europe was €730-780 per tonne, also unchanged from the previous week.

Fastmarkets’ weekly price assessment for steel HDG coil import, cfr main port Southern Europe was €660-700 per tonne, unchanged week on week.

Fastmarkets’ weekly price assessment for steel HDG coil import, ddp Southern Europe was €750-770 per tonne on Wednesday, also stable.

Europe’s steel industry has warned that the current draft of European Union’s Industrial Accelerator Act (IAA) risks unintentionally directing public financial support for low-carbon steel production toward suppliers located outside the European Union unless stricter “Made in Europe” provisions are introduced.

According to industry representatives, the absence of clear production-origin requirements could weaken Europe’s industrial base at a time when large-scale investments are required to decarbonize steelmaking capacity.

Under the European Commission’s draft proposal, at least 25 percent of steel used in public procurement projects and public support schemes would need to comply with low-carbon criteria. However, the proposal does not currently require that qualifying steel be produced within Europe.

While welcoming efforts to stimulate demand for low-carbon materials, Axel Eggert, director general of the European Steel Association (EUROFER), stated that steel should be formally recognized as a strategic sector due to its essential role in Europe’s clean energy, automotive and defense value chains. He emphasized that strengthening European strategic autonomy requires binding “Made in Europe” rules directly linked to production origin.

EUROFER argued that only steel melted and poured within the EU should qualify under lead-market support mechanisms, potentially including closely integrated European Economic Area countries such as Iceland, Liechtenstein and Norway.

Without clearly defined origin rules, the association warned that EU funding designed to accelerate industrial decarbonization could end up subsidizing green steel production abroad rather than supporting domestic transformation projects.

The association highlighted that the transition toward low-carbon steel production requires investments worth tens of billions of euros, while persistently high electricity prices continue to increase operating costs for emerging technologies such as hydrogen-based steelmaking. In the absence of predictable demand for European-produced low-carbon steel, companies may delay or redirect investment decisions.

EUROFER therefore called on EU lawmakers to introduce a legally enforceable definition of “Made in Europe” based on melt-and-pour criteria, apply both low-carbon and European-origin requirements under the Industrial Accelerator Act, and formally recognize steel as a strategic industrial sector within the EU’s clean industrial policy framework.

Wales First Minister Eluned Morgan has called on the UK government to take immediate policy action to safeguard the country’s steel industry following discussions with UK Prime Minister Keir Starmer.

Morgan stressed that steel remains a foundation industry underpinning construction, infrastructure, manufacturing, transport, utilities and consumer goods production. With Wales hosting a significant share of the UK’s steelmaking capacity, she noted that strong national policy backing is essential as the sector undergoes structural transformation, including Tata Steel’s transition toward electric arc furnace production and ongoing developments at the 7 Steel facility.

Trade uncertainty and energy costs remain key concerns

According to the Welsh government, the UK steel sector continues to face mounting pressure from high electricity prices, persistent global overcapacity and expanding trade barriers.

Officials warned that uncertainty surrounding international trade policies, particularly potential EU trade measure changes, poses significant risks given the EU’s position as the UK steel industry’s largest trading partner.

Wales has therefore urged London to protect existing UK-EU steel trading arrangements during the transition toward net-zero steel production.

Safeguards and US market access in focus

The Welsh authorities have also emphasized the need for robust replacement measures once current UK steel safeguard protections expire in June 2026. Without renewed protections, the sector could become increasingly exposed to dumped imports while competing economies continue applying defensive trade instruments.

At the same time, the government reiterated calls for tariff-free quota access for UK steel exports to the US under the UK-US economic prosperity agreement, noting that remaining US tariffs continue to weigh on exporters despite the strategic importance of the US market.

UK Steel Strategy expected to provide policy clarity

Beyond trade measures, industry stakeholders are seeking competitive electricity pricing, stronger domestic steel procurement rules for public projects, effective trade remedies and policies aimed at preventing carbon leakage.

The Welsh government is contributing to the development of the forthcoming UK Steel Strategy through participation in the UK Steel Council alongside companies, unions and industry representatives. The strategy, expected to be published in March, is viewed as crucial for addressing structural challenges, supporting decarbonization investments and providing long-term certainty for steel producers and workers.

Global crude steel production in January this year decreased by 6.5 percent year on year to 147.3 million mt, according to the World Steel Association (worldsteel).

In January, crude steel output in Asia amounted to 107.6 million mt, down 8.6 percent, with China’s output at 75.3 million mt, down 13.9 percent, with 6.8 million mt produced by Japan, decreasing by 0.5 percent, 15.1 million mt produced by India, rising by 10.5 percent, and 5.6 million mt produced by South Korea, moving up by five percent – with all comparisons on year-on-year basis.

EU-27 countries produced 10.3 million mt of crude steel in January, down by 2.3 percent year on year. In the given month, Turkey’s output amounted to 3.4 million mt, up 5.8 percent year on year.  Germany produced 3.1 million mt of crude steel in January with a 15 percent increase compared to the same month in the previous year.

The CIS registered a crude steel output of 6.5 million mt, falling by 8.5 percent on year-on-year basis, with Russia’s estimated output at 5.5 million mt, down 7.4 percent year on year.

In North America, in January, crude steel output totaled 9.2 million mt, down by 0.6 percent, with the US producing 7.1 million mt, rising by 3.3 percent, both year on year. Crude steel output in South America in January amounted to 3.4 million mt, decreasing by 1.2 percent compared to the same month in the previous year, with Brazil’s output totaling 2.7 million mt, decreasing by 1.4 percent year on year.

In the given month, Africa produced 2 million mt of crude steel, up by 5.8 percent year on year. In the Middle East, crude steel output totaled 4.8 million mt, moving up by 12.6 percent year on year.