Orgalim warns EU’s new steel trade measures could cause massive cost surge for downstream industries
Orgalim, representing Europe’s technology industries, has issued a strong warning against the European Commission’s newly proposed steel trade regulation, arguing that the measure would trigger severe cost increases for downstream manufacturers.
The organization stated that the draft regulation, introduced to counter global overcapacity pressures in the steel sector, risks inflicting major economic damage on EU steel-using industries by restricting access to essential materials and raising administrative and tariff burdens.
According to Orgalim, the new proposal aims to support EU steel producers but would put strain on small and medium-sized enterprises. The organization warned that the measure comes at a time when Europe’s technology industries are already experiencing downturns, including a 5.6 percent decline in turnover, a 1.2 percent drop in employment, and a 3.2 percent reduction in investments in 2024.
Orgalim noted that existing steel safeguard measures, in place since 2018, already pose challenges by limiting access to competitively priced steel, constraining availability of specialized grades, and increasing administrative demands on importers. These conditions have contributed to average EU iron and steel prices rising by more than 40 percent since the introduction of provisional safeguards.
Key elements of the new regulation
The proposed regulation was described by Orgalim as “far more restrictive” than the safeguards currently in force. It includes a 47 percent cut in total import-quota volumes, a doubling of the out-of-quota tariff from 25 percent to 50 percent, and the elimination of the carry-over mechanism for unused quotas. The draft also introduces a mandatory “melted and poured” origin-verification requirement, which Orgalim warns would significantly increase documentation and compliance pressure for importers.
Cost impact: out-of-quota tariffs could surge by up to 1,200%
Orgalim’s analysis suggests that, with the new measures in place, annual out-of-quota tariff costs could reach €5.4 billion, a 660 percent increase compared with the estimated €700 million paid in 2024. Under more realistic assumptions, such as importers being able to use only half of their quota allocations, the costs could rise further to €9.3 billion, representing a 1,200 percent increase.
The organization also predicted that reduced import competition would lead to additional domestic price increases, further raising costs for downstream sectors already struggling with high energy prices, supply-chain disruptions, and weakened demand.
Cumulative burden from other EU policies
Orgalim stressed that the impact of the proposal cannot be viewed in isolation. At the same time, downstream industries are facing major regulatory shifts through the Carbon Border Adjustment Mechanism (CBAM), the phase-out of free ETS allowances, and new sustainability obligations under the upcoming Ecodesign for Sustainable Products Regulation (ESPR) Delegated Act on steel.
According to Orgalim, the European Commission’s impact assessment fails to fully capture the combined cumulative burden of these parallel measures, significantly underestimating the risks for downstream competitiveness.
Orgalim’s proposed amendments and call for a multilateral approach
To mitigate the negative impact if the regulation moves forward, Orgalim has proposed eight key amendments designed to maintain industrial competitiveness, ensure access to essential steel grades, and reduce administrative pressure.
These include exempting critical product categories, maintaining the 25 percent tariff, setting adequate quotas where EU production is insufficient, avoiding disruptions to UK and Swiss supply chains, administering quotas annually, reinstating carry-over, simplifying “melted and poured” rules, and conducting annual evaluations of the regulation’s effects.
Orgalim concluded by urging EU policymakers to halt the current proposal and instead adopt a plurilateral approach with like-minded partner countries. The organization argued that coordinated action through aligned tariffs, quotas, and carbon-pricing frameworks is the only effective way to address global steel overcapacity without imposing disproportionate harm on Europe’s technology industries. Without major changes, Orgalim warned the proposal will cause “lasting harm”, undermining competitiveness, innovation and industrial employment across Europe.
Romanian longs prices stable, but CBAM uncertainty exerts upward pressure despite soft demand
Romanian long steel prices have remained stable over the past week, with both rebar and wire rod offers largely unchanged from previous levels.
However, market participants report that some suppliers have begun testing slightly higher prices, driven mainly by CBAM-related uncertainty and expectations of increased import costs. Despite these upward attempts, overall buying activity remains weak, as local demand continues to struggle due to liquidity constraints, delayed projects and cautious purchasing behavior. Traders note that, without a meaningful improvement in domestic consumption, any upward price push is unlikely to gain sustained momentum.
“Although there are initial attempts to raise prices, I doubt the market will accept these higher levels. With colder weather and the end of the year approaching, demand is slowing further and buyers are becoming increasingly cautious. It is also concerning that some sellers are using CBAM-related uncertainty to justify price increases, as this measure offers little benefit to end-users and may further discourage potential investment,” a trader said, SteelOrbis
Currently, domestic rebar prices remain unchanged. The sole producer continues to offer at €550-555/mt ex-works, and spot traders keep levels at €550-565/mt ex-warehouse, similar to last week. Attempts by some traders to raise prices to €570-575/mt ex-warehouse have seen no interest, as buyers still find discounted material at €535-545/mt ex-warehouse.
Wire rod prices also remain stable, with traders continuing to quote €560-570/mt ex-warehouse amid weak demand.
Meanwhile, in the import market, upward price movement has begun to appear, particularly from EU suppliers, mainly due to the CBAM situation. However, because local demand remains weak and stocks are considered sufficient, most Romanian buyers are only purchasing medium-sized lots from nearby countries in line with needs. According to market participants, the Bulgarian supplier has raised its rebar offers to €580-600/mt CPT, up from €570-580/mt CPT previously. Among non-EU suppliers, Egyptian mills have kept their prices unchanged, continuing to offer rebar at €485-490/mt CFR and wire rod at €490-495/mt CFR. Likewise, Turkish suppliers have maintained stable pricing over the past week, supported by firmer scrap levels, with offers standing at €495-510/mt CFR, based on an exchange rate of €1 = $1.16 and estimated freight costs of €15-20/mt.
European HRC trading at near standstill amid ample stocks, CBAM uncertainty
Trade activity in HRC market in Europe has slowed to a near halt as most buyers have not been rushing to replenish stocks given sufficient levels of stocks, while sentiment has remained cautious.
Besides, most distributors claim that they are supplied through the end of 2025 and some even into early 2026, meaning the market is not likely to see fresh restocking before December. Meanwhile, the import HRC market has remained under pressure from the Carbon Border Adjustment Mechanism (CBAM). Although more traders have been proposing DDP-based contracts assuming the CBAM risks, buyers are still uneasy about the chance of prices rising.
More specifically, local mills in northern Europe have kept targeting €630-650/mt ex-works for new orders for January and February deliveries, the same as last week. However, according to sources, the tradable price levels for January delivery coils have been estimated at €610-620/mt ex-works for mainly January delivery, up by €10/mt on the lower end of the range week on week.
Meanwhile, in Italy, while mills have been targeting €600-630/mt for January delivery, the same as last week, the tradable price level for January delivery is still estimated at €590-600/mt ex-works. According to sources, several bookings have been voiced for December delivery at €580-590/mt ex-works, though Italian mills are already largely sold out for December delivery.
In the import segment, indicative offer prices for HRC have remained at €475-520/mt CFR, while HRC import offers including CBAM costs on DDP basis have been voiced at €580-600/mt levels, depending on the supplier, up by €20/mt on the lower end of the range week on week.
More specifically, import offers on CFR basis, excluding CBAM costs, have been heard for ex-India HRC at $570-575/mt CFR, which translates to €490-495/mt CFR. Besides, offers for ex-Indonesia HRC have settled at €475-490/mt CFR, mainly the same as last week.
In the meantime, offers for ex-Turkey and ex-Taiwan HRC have been heard at €600/mt DDP, duty included, mainly the same as last week, including CBAM costs, compared to €580-600/mt DDP last week. Offers for ex-South Korea have been voiced at €580-600/mt DDP Italy. “We are curious whether there’s even any quota left for Q1 2026. Most believe Turkey is definitely already overfilled, and, given the current market mood, it wouldn’t be any surprise if other origins are as well,” a market sources told SteelOrbis.
Besides, several offers from different Asian HRC suppliers have been voiced in northern Europe at around €595-600/mt DDP.
According to sources across Europe, the launch of CBAM has been overshadowed by a patchwork of unclear information, effectively forcing buyers to navigate import choices with their eyes closed. There is a widespread expectation that the final stage of implementation will push the system toward greater use of real emissions measurements instead of default estimates, but the schedule for this transition remains undefined.
Italy steel exports decline to ten-year low
Italy’s exports and imports diverged in 2024. Shipments abroad sunk to a ten-year low, suffering from weak manufacturing activity, the crisis in Germany’s automotive sector and geopolitical tensions, while intake remained stable, Kallanish notes.
Italian steel shipments fell by 5.7% on-year to 14.9 million tonnes; however, imports remained stable at 18.5mt. As a result, the national steel trade deficit widened from 2.6mt in 2023 to 3.6mt last year.
Imports from the European Union reached 8.4mt, up 3.1% on-year. Germany increased shipments to Italy by about 200,000 tonnes to 2.2mt. Spain delivered 992,000t, while France supplied 1.6mt, a moderate rise. Germany confirmed its position as the top supplier with a 12% share of total imports.
Europe continued to absorb 80% of Italian steel shipped abroad. Declines were recorded for Germany at 2.8mt, France at 1.5mt, Austria at 804,000t and Spain at 798,000t. These reductions were partly offset by higher sales to the Czech Republic at 875,000t and Romania at 676,000t.
Italy’s steel imports from non-EU countries fell to 10.1mt in 2024, down 2.6%. The decline was driven by lower volumes from China, Vietnam, South Korea and Russia, partly offset by a surge in Turkish-origin supply, which rose from 615,000t to 1.2mt, and higher shipments from India.
Exports to non-EU markets fell 8.1% to 3mt, the lowest levels seen in the past two decades. Outbound shipments declined to Switzerland at 550,000t, to Turkey at 355,000t and to the United States at 325,000t. Growth was recorded to Bosnia, Serbia and Canada.
Natalia Capra France
German ‘small summit’ demands better conditions for EAFs
Following the “steel dialogue” hosted by German Chancellor Friedrich Merz earlier in November, national steel federation WV Stahl called another meeting last week, aiming to raise support for medium-sized steelmakers operating electric arc furnaces.
“EAF mills are the backbone of the circular economy, and the key driver of the decarbonisation of heavy industries,” WV Stahl president Gunnar Groebler declared at the meeting. Like most presidents over the years, Groebler is a representative of one of the larger listed mill groups, Salzgitter AG, which, however, is also an active operator of an EAF mill, in Peine.
EAF mills account for 30% of steel production in Germany, and together employ 32,000 staff. Groebler noted that EAF mills have been particularly hurt by power costs that are not competitive internationally.
Among its requests, WV has asked policymakers to provide an industrial electricity price of €30-60 ($35-69) per megawatt hour, including all associated costs. The figure echoes the request made earlier when WV Stahl criticised the government’s draft for an industrial power price (see Kallanish 19 November).
The EAF summit also asked for safeguarding domestic scrap supply, and an expansion of the Carbon Border Adjustment Mechanism (CBAM) to imports of steel-based products.
In a reaction statement, stainless steel trader Gerber called the summit “a declaration of war on the downstream”. Gerber dismisses several statistics cited by WV Stahl to illustrate an aggravation over the years. “The self-inflicted problems of the steel producers … are being hidden under a dangerous propaganda machinery of half-truths … designed solely for the benefit of the large mills,” Gerber writes.
Christian Koehl Germany
ArcelorMittal Poland to close Chorzow sections mill
ArcelorMittal Poland (AMP) will close its Chorzow-based plant, otherwise known as Huta Krolewska, by year-end. Despite the unit producing specialised products, the funds required to modernise the outdated equipment make it economically unviable to continue operations in the current European steel industry climate, the firm says.
Chorzow belongs to a select few mills that make up ArcelorMittal’s Rails & Special Sections division, the others being AMP’s flagship Dabrowa Gornicza steelworks, as well as Gijon in Spain and Rodange in Luxembourg. It produces sections for mining supports.
In 2021, the Chorzow plant invested PLN 27 million ($7m) to produce new rail profiles hitherto unavailable in Poland, helping it secure customers from Belgium, the Netherlands, Lithuania, Hungary and Estonia (see Kallanish passim). The investment included a descaling device, modernisation of the rolling stands, a new marking machine, and a new rail control and measurement unit.
AMP also attempted to find a strategic investor and establish a joint venture, it says.
Despite producing specialised products, the plant’s share in AMP’s production is less than 1%. “The age of the plant also means that ensuring safe working conditions at the plant will pose a significant challenge in the coming years. Significant financial outlays are necessary, which, given the current difficult situation in the steel sector in Europe, we cannot afford, as this would be economically unjustified,” AMP Long Products director Marek Kempa says in a note sent to Kallanish.
All 270 workers at the Chorzow plant will be reassigned to other AMP units, the firm notes.
At Dabrowa Gornicza – one of the few sites globally capable of producing 120-metre rails – AMP commissioned earlier this year a Danieli RH2 rail-hardening system (see Kallanish passim).
AMP’s crude steel production rebounded 22% on-year in 2024 to 3.8 million tonnes, following a very weak 2023.
Adam Smith Austria
Czech steel sector urges government action as Germany introduces subsidized electricity tariff
Czech and Slovak steel producers and processors association Ocelářská unie has issued a strong warning about the deteriorating situation in the European steel market, emphasizing that Germany’s new subsidized electricity tariff, due to take effect in January 2026, and which will keep energy prices for businesses at half the Czech level, will significantly undermine the competitiveness of Czech steelmakers.
According to the association, the European steel market is “crumbling” under the weight of high costs, weak demand and surging imports – and, unless Prague acts, Czech industry will fall behind.
Under Berlin’s plan, the German government will introduce an industrial electricity price of €50/MWh. This support, financed through €6.5 billion in state funds, will apply to energy-intensive industries including steel and smelting.
In contrast, Czech industrial electricity prices are around €100/MWh. Třinecké železárny, the only domestic producer of crude steel in the country, alone consumes about 1 TWh per year, so the price gap could cost the company CZK 3-4 billion annually. Roman Heide, CEO of Třinecké železárny, warned that, without similar national measures, long-term steel production in the Czech Republic may no longer be viable.
Call for urgent national action
The association is calling on the Czech government to adopt immediate measures to protect industrial competitiveness, including potential energy-cost support, before the German tariff enters into force. Without national action, the association warns the Czech Republic could face a long-term decline in steel production, job losses and further erosion of its industrial base.
Swedish steel output dips in September, October
Swedish mills registered a considerable decline in crude steel production in September and October compared with the corresponding previous-year months.
In September, Sweden produced 273,000 tonnes of crude steel, 11% less than in September 2024, Kallanish learns from national steel association Jernkontoret. From January through September, a total of 3.03 million tonnes of crude steel was produced in Sweden, which was 0.5% less on-year.
In the third quarter alone, however, production increased by 4% compared with the same period last year. According to Jernkontoret, production fluctuated significantly during the summer months due to several maintenance shutdowns and other overhauls. This caused a freaky compensation effect in August, which reported a 53% on-year surge.
“After a weak first half of the year, we are now seeing positive results for the third quarter. Annual production remains close to last year’s level, albeit slightly lower,” said Mathias Ternell, director of Trade Policy at Jernkontoret.
However, October continued the downward trend brought by September. At 282,000t, output was down 8.5% on-year. “Production stoppages for maintenance and other reasons continued into October, resulting in a weak start to the third quarter. The annual rate remains just below last year’s level,” equating to a 1.2% decline for the first ten months, Ternell concludes.
Christian Koehl Germany
Italian steel output continues to grow
Italian crude steel production increased again in October following strong hikes in the previous months, industry association Federacciai says in a note obtained by Kallanish.
Federacciai says October production increased by 2.2% on-year to 1.9 million tonnes. Output in the first ten months of the year also increased, by 3.1% on-year, to 17.5mt.
“Long hot-rolled products continue to see production growth … while flat products posted a decline for the month … although both categories still show overall increases since the start of the year,” Federacciai states.
Flat steel output decreased by 2.6% to 779,000t in October but increased by 4.7% to 7.5mt in January-October. Longs output, meanwhile, increased by 11.6% in October to 1.2mt and rose 4.4% to 10.4mt in January-October.
Only February and June have registered slight overall production declines so far this year.
Italian output has declined over recent years, falling by 5% on-year in 2024 to 19.9mt, by 2.5% on-year in 2023 to 21mt, and by 11.5% y-o-y in 2022 to 21.6mt.
Natalia Capra France
Saarstahl acquires Dutch company FNSteel
Saarstahl has agreed to acquire Dutch long steel manufacturer FNsteel, Kallanish hears from the German maker of special bar qualities (SBQ).
Based in Alblasserdam, FNSteel specialises primarily in the production of high-quality cold heading steels for customers in the automotive and construction industries.
“FNsteel has state-of-the-art plants, excellent product quality and an established market position. This is a superb fit for us and will help to consolidate our position in the cold heading steel sector,” says Saarstahl chief executive Stefan Rauber.
Cold heading steel has been specially developed for cold forging, Saarstahl explains. The cold heading process enables economical production of precision parts that can withstand extreme loads. Cold heading steels are known for their especially high purity and formability, toughness, and reliable strength.
FNSteel has been owned by British Steel since 2017 but was left out of the UK government rescue of British Steel earlier this year.
Separately, Saarstahl says it has certified its first CO2-reduced products in accordance with the Low Emission Steel Standard (LESS). Saarstahl has received a “Low Emission C” certification for its bar steel, wire rod and rail product groups.. The crude steel for these products is manufactured at the Saarstahl Ascoval plant in Saint-Saulve, France, using the electric arc furnace route with scrap as an input material.
Christian Koehl Germany