Knauf Interfer invests in sustainability and performance at Delta Stahl Barsinghausen
With an official groundbreaking ceremony on 28 August 2025, Knauf Interfer launched extensive expansion and modernization works at its Delta Stahl facility in Barsinghausen. The investments mark a significant commitment to the site, the region, and the wider steel service sector.
The project includes the construction of two new production halls with a combined surface of 6,373 m², bringing the total hall space of the Barsinghausen site to more than 24,000 m² upon completion. A highlight of the expansion is the integration of a state-of-the-art cut-to-length line, designed to boost efficiency, reliability, and delivery performance across Knauf Interfer’s production network.
“We are investing strategically in the performance of our production network – a clear step to strengthen efficiency, competitiveness, and to drive our transformation forward. This is a strong signal for Germany as an industrial base,” stated Dr. Carsten G. Gast, CEO/CFO of Knauf Interfer. “With strong customers and partners, we are shaping the future of steel service – economically strong and ecologically responsible.”
Delta Stahl already operates with a dedicated rail connection. As part of the current expansion, this will be further developed into a full-scale loading and unloading facility, enabling environmentally friendly transport solutions and reducing the site’s logistics-related carbon footprint.
The new cut-to-length line represents another step in optimizing production efficiency and sustainability within Knauf Interfer’s operations. “Today’s groundbreaking sets the course for optimal performance at the site. We have set ourselves an ambitious schedule, with the goal of completing the installation by summer 2026,” explained Thomas Niederhofer, Head of the Business Unit Steel.
The event gathered representatives from industry and business, including EUROMETAL Managing Director Ricardo Silva, who joined Knauf Interfer’s leadership in celebrating this strategic milestone.
UK car production rises for consecutive month
UK car production has risen for a second consecutive month, Kallanish learns from Society of Motor Manufacturers and Traders (SMMT) data.
Car production in July stood at 69,127 units, up 5.6% on-year, while total vehicle output fell 10.8% in the month to 72,006 units.
This was due to a large fall in commercial vehicle output, which reflected restructuring and a bumper month last year.
Car production for domestic and export markets improved, SMMT notes, rising 13.6% and 3.7% respectively, with overseas markets taking the majority of output at 79.4%.
The EU remained the main destination with a 45.6% share, followed by the US at 18.1%, China at 7.7%, Turkey at 7.2% and Japan at 3.4%.
While shipments to the EU and China fell by 7.9% and 7.1% respectively, output for Turkey and Japan grew 35.4% and 14.9%.
SMMT notes the US remains the largest single national market for British-built cars, underscoring the importance of the UK-US trade deal. Exports to the US rose by 6.8% to almost 10,000 units, reversing three straight months of decline.
In the year to date, total vehicle output is down 11.7% with 489,238 units produced.
In a separate outlook, SMMT notes “a slightly brighter picture for UK vehicle manufacturing is expected in 2026 as some investments come to fruition with, hopefully, a return to annual growth as new products on factory lines help to ensure the automotive industry remains a cornerstone of Britain’s economy, trade, employment and, indeed, decarbonisation.”
Carrie Bone UK
Northwest European plate inert after hike attempt underwhelms
Northwest European heavy plate stockholders are still bemoaning the lack of demand and business activity, with a rebound not anticipated in the autumn following the summer holidays.
Price hikes attempted one month ago, from at least one northern mill along with several Italian mills, have not been accepted so far. “It probably went up in smoke, like the one [hike attempt] in May, when the downward trend was still in full swing,” one German manager tells Kallanish.
Prices at least seem to have remained stable at the floor they reached at end-July, which would be around €670/tonne ($784) for S355 delivered from domestic European mills. Some mills are confident enough to offer elevated rates, with one German mill, for example, providing quotes “starting with a big bold 7”, a source says.
The deterioration in plate prices in the first half year was not perceived as dramatic as the price collapse for coil. According to the source, ”plate makers seem to have had a better grip on their capacity management”.
Imports do not seem to be attracting buyers or scaring mills. “I spoke with a mill today, and everyone is expecting import orders to fade out going forward, with CBAM at the doorstep,” one buyer says, who is in general not a friend of importing. “An order from India scheduled for three months ahead can easily take four months; whereas from domestic mills, you often get the delivery earlier than expected,” he adds.
Christian Koehl Germany
European HRC market steady after summer break; buyers cautious about price hikes amid weak demand
European steel hot-rolled coil prices were largely flat on Monday September 1, with buyers remaining cautious about a new round of price increases amid insufficient demand, sources have told Fastmarkets.
The first day after summer break was quiet for the European HRC market, according to sources.
Buyers and sellers were seen gradually coming back to the market, but trading was still subdued since participants were still assessing the situation.
Integrated producers in Northern Europe were heard to be aiming for €600-630 ($701-736) per tonne ex-works for October-November.
At the same time, most buyer sources estimated achievable prices at no higher than €580 per tonne ex-works on Monday.
“Mills are asking for higher prices [for HRC], but there will be no big volumes [of HRC] ordered because buyers already bought higher volumes for the third quarter and there is no immediate need to restock,” a buyer in Germany said.
The buyer added that a lack of new imports might support price rises for HRC with lead times in the first quarter of 2026.
“Because of [the] unclear implementation [of the] Carbon Border Adjustment Mechanism (CBAM) we have basically stopped at this moment the import activities,” a second buyer said.
Fastmarkets’ calculation of the daily steel HRC index, domestic, exw Northern Europe was €579.17 per tonne on Monday, up by €0.84 per tonne from €578.33 per tonne on Friday.
The Northern European index was up by €5.42 per tonne week on week and up by €19.17 month on month.
Meanwhile, Fastmarkets’ daily steel HRC index, domestic, exw Italy was €543.75 per tonne on Monday, up by €2.08 per tonne from €541.67 on Friday.
The Italian index was up by €2.92 per tonne week on week and by €15.42 per tonne month on month.
The Italian market was said to be restarting slowly after the summer break.
Estimations of achievable prices were reported at €540-550 per tonne ex-works, while target offers from integrated mills and re-rollers in Italy for October-delivery coil were heard at €570-580 per tonne ex-works.
A European mill was heard to be offering HRC to Italy at €600 per tonne delivered.
More suitors line up for ADI assets
Acciaierie d’Italia (ADI) is continuing talks with the Azerbaijan consortium comprising Baku Steel, Azerbaijan Investment Company, Jindal Steel International, and Bedrock Industries Management. Multiple Italian companies are also joining the race for ADI’s individual assets, sources close to the matter tell Kallanish.
Marcegaglia and Sideralba are reportedly interested in the tubemaking facility in Salerno, southern Italy. Eusider, Profilmec, and Marcegaglia have shown interest in the Racconigi tube plant near Cuneo in northern Italy, while Marcegaglia is also said to be eyeing the Socova tube mill in Sénas, southern France. The interest, which excludes the Taranto plant, is seen as part of a broader market consolidation strategy.
SiderAlba acquired the former Ilva coil rolling facility at Bizerte in Tunisia in 2017, which processes pickled and zinc-coated coils.
The second tender for the sale of the steelmaker opened on 1 August, with the process expected to conclude by October. The move is intended to give other potential buyers the opportunity to submit offers. Earlier this month, the Ministry of Enterprises and Made in Italy (MIMT) reached an agreement with local authorities on Taranto’s decarbonisation, marking a significant step towards the long-awaited programme agreement with them (see Kallanish passim).
“It is unacceptable that uncertainty still prevails in Taranto: the programme agreement has not been implemented, and we are stuck with a simple memorandum from 12 August that changes nothing. There is talk of new buyers, but the same names keep coming up, with no clarity on the assets or on the decarbonisation path,” general secretary of the Uilm unions Rocco Palombella told national television news outlet Rainews24. “In the meantime, workers remain suspended in uncertainty over requests for wage support, which risk expanding further.”
Natalia Capra France
Appeals court rules against Trump tariffs
The US Court of Appeals for the Federal Circuit has ruled that Donald Trump’s global tariff actions are unlawful, Kallanish learns. The decision was issued on 29 August.
In a 7-4 ruling, the court upheld a lower court’s finding that Trump’s measures were “invalid as contrary to law”. The majority found that Section 232 of the Trade Expansion Act does not give a president authority to unilaterally impose or revise tariffs. The court also ruled that neither trade deficits nor the opioid crisis constitute a national emergency that would allow sweeping tariffs to be imposed.
The judgment, however, does not take effect immediately. Enforcement has been delayed until 14 October to allow the Trump administration time to appeal to the Supreme Court.
The ruling marks a major setback for Trump’s tariff strategy.
Trump responded within hours in a lengthy Truth Social post. “ALL TARIFFS ARE STILL IN EFFECT!” he wrote, calling the court “highly partisan” and warning that removing tariffs would be “a total disaster for the Country”. He added that the decision would “literally destroy the United States of America,” insisting tariffs are “the best tool to help our Workers, and support Companies that produce great MADE IN AMERICA products.”
Margie Palmer USA
Thyssenkrupp Steel calls for effective trade protection against cheap imports
The European steel industry faces a defining moment as global overcapacity and cheap imports threaten its future. In a guest article for German weekly business news magazine WirtschaftsWoche, Dennis Grimm, spokesperson of the Executive Board of German steelmaker thyssenkrupp Steel, issued a strong call for effective trade protection, a robust Carbon Border Adjustment Mechanism (CBAM), binding “European Content” quotas, and structural reforms to keep Germany and Europe competitive.
Mr. Grimm warned that blast furnaces across Europe are being shut down due to shrinking demand and fierce global competition. Transformation projects and new investments are being postponed, while jobs vanish at an alarming rate. The ripple effect extends beyond steel, hitting automotive, chemicals and mechanical engineering sectors. Grimm stressed the need for a clear strategy as China and India have shifted from partners to competitors, with China emerging as a systemic rival.
Global steel overcapacity is projected to reach 700 million mt – six times EU’s total demand. Much of this comes from China, where steel is subsidized up to 10 times more than the OECD average. Grimm argues that without protection, European producers stand no chance against such dumping practices.
Adding to the pressure, the EU-US tariff deal has fixed a 50 percent import tariff into the US, diverting even more global steel excess to Europe while closing export routes for EU producers. “Doing nothing in the face of overcapacity would have catastrophic consequences for Europe’s steel industry and its value chains,” Grimm warned.
The three urgent measures
- Effective Trade Protection
- Robust Carbon Border Adjustment (CBAM)
- “European Content” Quotas
Brussels has proposed halving duty-free import quotas and applying a 50 percent tariff on excess imports. Eleven EU states support the plan – but Germany has yet to follow.
Grimm criticized loopholes in current CBAM rules, which allow circumvention. He stressed extending CBAM to processed steel products and maintaining free EU ETS allocations until reforms take effect.
To avoid subsidizing foreign producers with domestic funds, Grimm urged binding quotas ensuring public procurement uses a fair share of EU-made steel.
Grimm revealed that thyssenkrupp is losing contracts to non-European competitors offering steel up to 50 percent cheaper.
EC opens consultations on CBAM’s technical application
The European Commission launched a series of public consultations surrounding the technical implementation of the Carbon Border Adjustment Mechanism (CBAM) on Thursday (28 August), as a first step in clearing myriad uncertainties presented by the instrument’s upcoming definitive phase.
Such news will be welcomed – though likely also lambasted for its late initiation – by steel market participants, especially given this week’s confirmation that CBAM will not see further delays to its definitive stage. The definitive phase of CBAM, implemented from January next year, introduces fiscal liabilities for the embedded emissions of imports under CBAM-designated product codes, widely applicable to European steel imports.
Split into three consultations, the Commission’s most recent call for evidence proposes three implementing regulations to outline the specific application of CBAM to the bloc’s imports, namely:
- CBAM’s calculation methodology;
- interactions between Emissions Trading System (ETS) free emissions allocations and CBAM liabilities;
- CBAM cost reductions available to accommodate carbon prices already paid on embedded emissions.
The feedback period runs from 28 August to 25 September.
The European Commission has recently concluded a related consultation on the extension of CBAM to downstream products, to further protect against carbon leakage and address circumvention loopholes.
Throughout this series of consultations on CBAM, the Commission has elected not to complete additional impact assessments, deeming its 2021 review as sufficient. The Commission states in its latest briefing document that CBAM’s practical implementations are of “limited, technical scope,” and include “costs/savings of limited magnitude.”
Too close for comfort?
As McCloskey’s steel market sources have cited potential per ton CBAM cost exposure differentials of well over EUR100 on best estimations of different import routes in lieu of actual formula values, it is unlikely that many of Europe’s importers would agree with the Commission’s assessment. Indeed, at European steel distribution association EUROMETAL’s 75th anniversary conference, CBAM was described as everything from a “nightmare,” to a “molotov cocktail for the entire supply chain.”
That said, with further delays ruled out and just over four months to go, the market will likely prefer administrative certainties on CBAM to an administrative report on its impending consequences – though one could question why such matters are being left to industry consultation at the final hour after nearly two years in CBAM’s transitional phase, regardless of the Commission’s reference to “lessons learnt” since 2023.
Methodology uncertainties
CBAM’s calculation methodology has increasingly become the key point of contention in McCloskey’s conversations with steel market sources, as the “benchmark” values operating within the CBAM formula such to derive an importer’s emissions liability have yet to be released by the European Commission – despite the increasing overlap between steel import lead times and CBAM-liable customs clearances.
In effect, importers cannot currently calculate their actual exposure to CBAM import costs, instead resorting to their own estimated values.
The formula defining CBAM emissions exposure is presented below:
Emissions subject to CBAM = embedded emissions – (CBAM product benchmark x CBAM factor)
Imported emissions subject to CBAM must be secured against CBAM certificates, which are priced according to the quarterly average price of equivalent European Union Allowances (EUAs) auctioned under the Emissions Trading System (ETS). Importers can also deduct prior certified carbon payments under parallel international carbon reduction schemes, reducing the number of certificates required. Both CBAM certificates and ETS EUAs represent one ton of CO2 equivalent (CO2e) of embedded emissions in relevant goods.
Averting “carbon leakage”
The “CBAM factor” in the formula represents the inverse relationship between CBAM obligations and existing “free allowances” under the ETS. CBAM’s purpose is to replace these free allowances as a carbon leakage protection mechanism, in ensuring an equitable winding down of the bloc’s net industrial emissions.
Energy-intensive industries deemed at risk of “carbon leakage” – the relocation of polluting industry outside of the EU to escape emissions reduction obligations and costs – have historically been granted free allowances to ensure their continued competitiveness within the EU, in line with their reported productions, and adjusted against the top 10% of competing domestic installations as an ongoing incentive to decarbonise.
The steel industry’s operations have enjoyed widespread and prolonged categorisation as a carbon leakage sector, meaning that for the duration of the ETS’ tenure, steel producers have received the bulk of its emissions allowances for free, without having to secure EUAs via open auction.
This has led to quirks in market cycles, such as in the latter half of 2024, seeing EU steelmakers oversupply the market despite then-subdued demand conditions, in order to preserve maximum emissions allowances for future production.
Goodbye free allowances, hello CBAM
From 2026 however, steelmakers – and other carbon leakage designees – will begin to lose their free allowances at an accelerating rate to ensure the EU meets its decarbonisation targets. This wind-down opens with a 2.5% reduction from January, nearly halving to a 48.5% reduction in 2030, and fully extinguishing free allowances from 2034.
The “CBAM factor” therefore correlates to these reductions to ensure equivalence between domestic and international markets, meaning that importers of CBAM goods can import 97.5% of their embedded emissions duty-free in 2026, though not without caveat.
CBAM’s elusive benchmarks
This caveat is the aforementioned “CBAM product benchmarks”, which operate similarly to the adjustment factor in the ETS free allowance calculation, incentivising importers to look to the lowest emitting suppliers when sourcing international steel. As long as EU importers remain in the dark as to exact benchmark values, they cannot accurately deduce their cost exposure under CBAM – even for material already on the water.
Larger steel trading companies have already been baking CBAM premiums into their sales to end-users, as consumers have been unwilling to adopt variable cost risks into their procurement.
Despite their link and interdependence, respective coverage under the ETS and CBAM are not identical – for example, CBAM operates at the product level, applicable to the emissions embedded under production route-agnostic CN codes; whereas the ETS assesses emissions liabilities for industrial installations at the production stage – meaning the remit of each mechanism cannot be so easily assumed.
Commission confirmations
The “Call for Evidence” briefing document seeks to enlist industry responses to “clarify key technical aspects of [CBAM],” and solidifies many of the Commission’s intentions for the instrument:
- CBAM’s methodology will be revised and simplified (in line with previous resolutions under the Commission’s Competitiveness Compass strategy).
- The calculation process for direct embedded emissions (for which steel imports are liable) and indirect emissions will be clarified in detail.
- CBAM factor methodology will mirror existing free allowance rules under the ETS.
- Mechanisms and “sufficient evidence” for claiming CBAM cost reductions against carbon prices “effectively paid” under parallel carbon systems will be made transparent, supporting international emissions reduction schemes and leaving the door open for the development of a global carbon price.
The review seeks to encourage and better facilitate declarations using actual emissions values for CBAM compliance, but will also make transparent default emission fallbacks.
Benchmark challenges
As for CBAM benchmarks, the Commission confirms that “benchmarks will be derived from the relevant EU ETS benchmarks used to determine the allocation of free allowances within the EU carbon market […] to reflect the relevant amount of free allocation in imported goods.”
The Commission acknowledges the “key challenge” in matching the ETS and CBAM benchmarks, and states it prefers a “simple […] and accurate” approach in order to avoid “a disproportionate administrative burden.”
While previous communications do suggest that CBAM benchmarks will be separately categorized via production route as in the ETS, which bifurcates its benchmarks for electric-arc furnace and blast furnace-produced steel, this is still yet to be explicitly confirmed by the Commission and could be threatened by their preference for simplicity – though a commitment to an accurate reflection of free ETS allowances would surely require a continued split.
The Commission’s indicative timeline schedules Q4 as the deadline for the technical implementing acts, which will presumably be preceded by the synopsis report on the consultations, which is “to be published in due course.”
Benjamin Steven Journalist, Steel
Polish rebar prices drop further on muted demand
Polish rebar prices weakened during the week to Friday August 29 due to sluggish demand, with mills resorting to production cuts to fend off further price drops, sources told Fastmarkets.
Over the week, market participants indicated that prices for rebar hovered around 2,400-2,430 zloty ($656-664) per tonne CPT. The previous week, traders estimated the workable market for rebar at 2,400-2,450 zloty per tonne CPT.
“There isn’t much room for prices to go deeper down – I believe we have reached the bottom,” one distributor source told Fastmarkets, adding that September’s decision on scrap delivery prices might influence the market.
“Scrap is an important cost factor for long steel products, so we might see new price increases in September,” the source said.
Meanwhile, Fastmarkets heard that some mills in Poland have stopped accepting new orders for rebar and reduced their production quotas to keep prices stable.
“We are not making money at current prices, so we’ll have to reduce production for the month of September,” a producer source said.
“We’d rather take a production cut than lower prices,” the producer source added.
Fastmarkets’ weekly price assessment for steel reinforcing bar (rebar) domestic, cpt Poland was 2,400-2,430 zloty per tonne on Friday, narrowing downward by 20 zloty from 2,400-2,450 zloty per tonne the previous week.
Some import prices for rebar from Germany were heard around €580-590 ($676-688) per tonne delivered. Meanwhile, import prices from Ukraine were heard hovering around €540-550 per tonne delivered, for quantities above 1,000 tonnes.
Meanwhile, wire rod prices remained stable this week.
Fastmarkets’ price assessment for steel wire rod (drawing quality), domestic, delivered Poland was 2,580-2,650 zloty per tonne on Friday, unchanged week on week.
EU HRC prices hold ground; buyers continue pushing back on higher offers
European hot-rolled coil prices were holding ground on Friday August 29, with sources expecting more clarity on the direction of prices in the coming weeks, Fastmarkets heard.
Producers in Northern Europe achieved some price rises in recent weeks, with deals rising from rock bottom levels in June and July.
Notably, HRC with October lead times was heard traded at €570-580 ($665.79-667.37) per tonne ex-works recently.
On Friday, most buyer sources estimated achievable prices at €580 per tonne ex-works.
At the same time, target offers of €600-630 per tonne ex-works for October-November lead times were still considered “unrealistic” by local buyers amid a lack of demand.
One Italian supplier was offering October-delivery HRC at €610-620 per tonne delivered to Germany, with no sales reported at these levels so far.
Fastmarkets’ calculation of the daily steel HRC index, domestic, exw Northern Europe was €578.33 per tonne on Friday, down by €1.05 per tonne from €579.38 per tonne the previous day.
The Northern European index was down by €4.58 per tonne week on week and up by €20.00 month on month.
European suppliers maintained higher offers, despite pushback from customers and stable end-user demand.
Sources said the uptrend was mainly backed by expectations of reduced import availability and higher costs of import steel in general due to the introduction of the Carbon Border Adjustment Mechanism (CBAM) and new trade measures to replace safeguards.
“Now mills in Asia are offering October shipment and there is a chance that material will fail to arrive in December, therefore falling under the scope of CBAM in January 2026,” a buyer in the Benelux area told Fastmarkets.
The source estimated that imported coil will be €50-70 per tonne more expensive when CBAM comes into force.
Another source said that mills were also bullish due to looming long-term contracts negotiations with end users.
“The gap between long-term and spot prices is enormous now; it’s over €120. So mills are trying to push spot levels higher to have a better position in negotiations,” a German buyer said.
Meanwhile, Fastmarkets’ daily steel HRC index, domestic, exw Italy was €541.67 per tonne on Friday, stable day on day.
The Italian index was up by €0.84 per tonne week on week and by €13.54 per tonne month on month.
Many stakeholders were still on holiday and expected to return in September.
Integrated mills and re-rollers in Italy were targeting €570-580 per tonne ex-works for October tonnages. Estimates of achievable prices were heard between €540 and €550 per tonne ex-works.
Prices for overseas coil were also largely unmoved.
HRC from Indonesia was on offer to Italy around €470-475 per tonne CFR, sources said, but buying interest was minimal due to regulatory uncertainty.
Meanwhile, offers from Turkey remained at around €520-540 per tonne CFR, including the EU anti-dumping duty.
HRC from India was on offer to Italy at €520-525 per tonne CFR.