EU steel industry calls for immediate action to safeguard steel value chain
The European steel value chain is facing an alarming downturn. With accelerating deindustrialization across steel production, processing, and distribution, the sector’s competitiveness and long-term sustainability are now under threat. In response, the European Federation of Steel, Tubes and Metals Distribution & Trade (EUROMETAL) and the European Steel Association (EUROFER), two leading industry associations, have made a joint appeal for the immediate introduction of targeted trade measures, aimed at restoring balance rather than halting imports altogether.
The associations stated that the steel industry plays a strategic role in Europe’s economic and environmental landscape, especially as it moves toward a green and digital economy. However, non-EU steel-based products are flooding the market, often without the same safeguards applied to raw steel imports.
They noted that key challenges of unrestricted imports are up to 50 percent of steel-based products used in energy applications now being sourced externally; declining domestic production and job losses across the steel supply chain; shrinking investment in R&D, undermining Europe’s ability to lead in clean industrial technologies.
Noting that the Steel and Metals Action Plan, developed to protect EU industrial capability and employment emphasizes the need for balanced trade conditions, the associations stated that, however, current regulations do not sufficiently cover downstream products – those made with or from imported steel. Carbon leakage in downstream products – where emissions are effectively outsourced – poses a major risk, just like raw material imports. This lack of protection may encourage further offshoring of industrial activity, undermining Europe’s climate objectives and strategic autonomy in green technology, the associations noted.
202050728 Joint Statement by EUROFER and EUROMETAL – Steel Derivatives
BMW to use Voestalpine’s electrical steel in next-gen EV motors
Austrian steelmaker Voestalpine AG has announced that it has signed a landmark agreement with BMW Group for the supply of its high-efficiency isovac® electrical steel, marking a pivotal advancement in the evolution of electric mobility.
Under the deal, BMW’s Steyr plant in Austria will begin incorporating isovac® ultra-thin electrical steel featuring advanced coating technologies into its Gen6 electric motors that will power the automaker’s upcoming Neue Klasse EV lineup.
isovac® steel: Core of BMW’s electric innovation
Key advantages of isovac® electrical steel for electric vehicles include lower energy loss through specialized alloy compositions and cutting-edge coating technologies; higher power and torque due to improved magnetic flux density; and improved energy efficiency and reduced weight, made possible by high mechanical strength and magnetic permeability. These features make isovac® a critical material for modern electric motors, improving performance and enhancing sustainability.
This shift highlights the importance of regional value creation and technological leadership as Europe accelerates its transition toward a greener, more electrified future.
EU groups call to curb imports of steel derivatives
European steel association Eurofer and distributors association EUROMETAL joined forces to call for trade measures on ‘steel derivatives’ – goods containing steel, they said on 28 July.
The new measures are needed to re-establish equilibrium and ensure that import volumes align with the sustainability of EU-based steel industry, they said.
“The influx of non-EU steel based products continues to replace EU-manufactured goods, entering the market without being subject to equivalent protective measures as for imported steel,” the two industry groups said in a joint statement.
“Sectors critical to Europe’s green transition are experiencing significant challenges due to these imports,” they added.
Earlier this year, the European Commission launched a public consultation on Carbon Border Adjustment Mechanism (CBAM), including possible extension of the measures to downstream products.
Eurofer and Eurometal claimed that similar expansion is needed in traditional trade measures as lack of those expose European steel industry to growing risks from floods of imported steel containing goods
“A similar risk exists in trade policy: exempting downstream products from effective trade protections could intensify pressures — and subsequent damage — deeper into the supply chain,” the statement said.
The statement cited finding released by the Organisation for Economic Co-operation and Development (OECD) that there is an ongoing structural shift in global trade patterns, noting record-high direct Chinese steel exports in 2024 alongside rapid growth in indirect steel exports embedded within fabricated or transformed products, particularly originating from China and South Asia.
On 23 June the US extended the 50% steel tariff downstream to the steel content of relevant imports, including products such as white goods.
202050728 Joint Statement by EUROFER and EUROMETAL – Steel Derivatives
Maria Tanatar Associate Director, Steel and Green Steel
EU rebar prices up despite seasonal slowdown
Northwest European rebar prices inched higher in the week to 30 July. Trading activity remains thin amid the summer slowdown, but bullish signals from surrounding regional markets gave producers room to increase offer levels in anticipation of stronger post-holiday demand.
McCloskey’s sources reported prices for Northwest European rebar between EUR615-625/t delivered.
Market participants confirm the market as quiet for summer holidays, which will continue to weigh on trading activity for the coming weeks, and expect this week’s offer price increase to serve as a sign of higher prices to come once producers complete holiday-aligned maintenance.
“List prices are up slightly,” said a Benelux distributor. “Nobody wants to buy due to the holidays, so any effects won’t be seen for a couple of weeks, this is more of a signal for the market in case of demand recovery.”
That said, buying at prices close to EUR600/t was no longer considered negotiable with domestic producers, considered as having sufficient orderbooks to carry them through the quieter summer period. Higher prices in the Italian and Spanish domestic markets were cited as factors giving North European sellers room to increase offer levels.
Imported steel is also becoming less attractive as associated lead times increasingly fall liable to Carbon Border Adjustment Mechanism (CBAM) clearance duties.
While Turkish and North African material could still feasibly arrive in time before January, availability for said origins is tighter given competitive pricing and recent changes to rebar import restrictions under the European steel safeguard system – potentially compounded long-term if intensified replacement measures are introduced ahead of schedule as rumoured, from January.
Benjamin Steven Journalist, Steel
EU coil prices rise, further increase expected in September
European coil prices inched higher in the week to 1 August amid the holiday season, with market sources seeing the market as primed for further price increases post-summer.
Northwest European hot-rolled coil (HRC) offers appear to have centralised around EUR 580-590/t ex-works or delivered, though market participants on both sides deny that trading activity is yet possible at said levels.
A North European steelmaker reported bids rejected at EUR560/t ex-works, seeing realistic price levels at a EUR570/t minimum, but some sources still see prices as low as EUR540/t ex-works as achievable from integrated mills with gaps remaining in their August-September production schedules. Deals for October delivery were indeed considered workable at a EUR560-570/t ex-works or delivered minimum. The lowest offer reported was at EUR560/t delivered in Benelux, the equivalent of EUR550/t ex-works.
Liquidity in the market remains thin as the summer season enters full swing: downstream cold-rolled and hot-dip galvanized coils are exhibiting similarly stable pricing, offered between EUR660-690/t ex-works or delivered, and considered tradable by most sources between EUR650-670/t ex-works – though some still perceive opportunity to secure prices as low as EUR630/t for cold-rolled and EUR 645/t ex-works for hot-dip galvanized, respectively.
In Italy, domestic prices were reportedly slightly higher on week – with offers at similar levels to North Europe – but actual trading prices lagged, cited at EUR530-550/t ex-works by sources.
Domestic producer Acciaierie d’Italia (ADI) made progress on its revival at the end of last week, as the Italian government renewed environmental authorization for the site, allowing the restart of idled furnaces to continue production at ADI. As per the terms of this latest authorization, steel production at ADI will be capped to 6 mt. ADI is currently operating one furnace, with pig iron capacity of 2.3 mt.
In the international market, import prices have increased, potentially supporting bullish sentiment for the near-term: Turkish material is available at EUR535-540/t CFR Italy, anti-dumping duty-inclusive, alongside Algerian steel at EUR530-540/t CFR.
Both origins were viewed as ‘safe’ by buyers due to delivery before the Carbon Border Adjustment Mechanism (CBAM) enters its definitive stage in 2026. Indian imports were reported at a EUR500/t CFR minimum, but associated lead times are longer – some sources also suspect that exporters are close to exhausting their safeguard quotas.
As import lead times approach the end of the year, and face duty liabilities under the CBAM and potential safeguard revisions from January, European steel distributors will have little option but to source material from the domestic market come September, when restocking activity is expected to resume post-summer for fourth-quarter deliveries.
“It is getting harder to import,” said an Italian distributor. “Distributors need to make sure that any CBAM costs can be passed onto end-users.”
As such, many have taken advantage of current import competitiveness as far as possible – “prices are relatively stable at the moment, everyone is waiting for September restocking,” said a mill source. “Buyers are gorging themselves fat on imports while they can but their options will dry up next month.”
A North European distributor confirmed, having ordered over 10,000 t of Indonesian material in the last week. The source said Indonesian exporters claimed the load would be the last available to Europe before CBAM duties threaten their competitiveness, but did hear additional volumes still available as of this week. Safeguard measures do not apply to HRC exports from Indonesia.
Green Steel
The green steel market remains slow as the market awaits regulatory clarities toward the end of the year – namely CBAM benchmark values and lead market support as signalled by the European Steel and Metals Action plan.
Spot green HRC premium indications were rangebound on week at EUR75-100/t for scope 1-3 material of 0.7-0.8t carbon content, with mass-balanced material offered at similarly stable premiums of around EUR60/t for a 20% reduction from standard 2mt emissions levels. McCloskey’s reduced carbon marker – which calculates the value of a single unit of carbon reduction in reference to all surveyed green HRC premia – inched down to EUR59.13/t on week.
European distributors were heard stocking up on low-carbon imported material – particularly from Turkish electric-arc furnace producers – though end-users remain reluctant to pay premiums for green steel without a regulatory or pre-defined self-imposed decarbonization impetus.
European coil and green steel prices
| Term | Marker (EUR/t) | Change | |
| Weekly Northwest Europe steel coil | |||
| Northwest Europe ex-works HRC | EX-WORKS | 560 | 5 |
| Northwest Europe ex-works CRC | EX-WORKS | 665 | 15 |
| Northwest Europe ex-works HDG | EX-WORKS | 670 | 10 |
| Weekly South Europe steel coil | |||
| Italy ex-works HRC | EX-WORKS | 535 | 5 |
| South Europe CIF HRC | CIF | 520 | 10 |
| Weekly Green steel | |||
| Green Northwest Europe HRC premium (scopes 1-3 CO2 0.8t) | 80 | 0 | |
| Green Northwest Europe ex-works HRC (scopes 1-3) | EX-WORKS | 640 | 5 |
| Green HRC premium (scopes 1-2 CO2 0.5t) | 80 | 0 | |
| Green Northwest Europe ex-works HRC (scopes 1-2) | EX-WORKS | 640 | 5 |
| Green HRC reduced carbon price (scopes 1-3) | 59.13 | -3.08 |
Benjamin Steven Journalist, Steel
Maria Tanatar Associate Director, Steel and Green Steel
Green steel adoption still slow in Europe; amid buyer pushback against paying premiums
Fastmarkets’ methodology defines European green flat steel as “steel produced with Scope 1, 2 & 3 emissions at a maximum of 0.8 tonne of CO2 per tonne of steel.”
While European mills were offering premiums for such steel at a minimum of €200 per tonne, or even higher in some cases, tradable values were mostly lower.
Buyer sources estimated that the achievable premium for such steel was €100-150 per tonne, with some bids coming in even below €100 per tonne.
Mill sources gave higher estimates of around €170-200 per tonne.
One buyer source said for green steel with such emissions threshold it was possible to get premiums at €120-130 per tonne for larger volumes.
Fastmarkets’ assessment for the green steel domestic, flat-rolled, differential to HRC index, exw Northern Europe was €120-170 per tonne on Thursday, narrowing down by €10 per tonne from €120-180 per tonne seven days earlier.
A large distributor in Northern Europe said that while it was getting regular inquiries from end users for steel with a lower emissions threshold, “only a small portion of inquiries was resulting in actual sales.”
And a second buyer source told Fastmarkets: “It’s not exactly a good time to charge premiums. Green steel remains a niche market so far, but hopefully the [Carbon Border Adjustment Mechanism] (CBAM) and [the European] Steel and Metals Action Plan will give it a push in the next few years.”
Earlier this month, the European Commission launched a public consultation on the CBAM, with the aim of refining the framework and closing potential loopholes.
The European Steel and Metals Action Plan, which was published in March is also expected to support and promote the adoption of green steel across supply chains and to grant European steelmakers access to “affordable green energy.”
So far, high prices for electricity remain one of the major stumbling blocks to the decarbonization of the steel industry in Europe because the new green steel capacities announced in the region are predominantly electric-arc furnace (EAF) facilities.
Electricity prices in Europe remain significantly higher than in many other regions, with industrial rates often exceeding €100 per MWh – compared with around €30-50 per MWh in parts of the US and China – posing a major challenge for the EU’s energy-intensive industries such as steelmaking.
Green long steel
Fastmarkets’ assessment for the green steel, differential to steel reinforcing bar (rebar), domestic, delivered Northern Europe was €15-30 per tonne on July 30, stable week on week.
While Fastmarkets’ methodology defines European green long steel as “steel produced with Scope 1, 2 & 3 emissions at a maximum of 0.5 tonne of CO2 per tonne of steel,” EAF producers using scrap as feedstock typically emit around 0.8 tonne of CO2 per tonne of steel.
During the assessment week, buyer and seller estimates of achievable values for such steel were reported at €15-30 per tonne.
One source reported premiums going up to €50 per tonne and said that, depending on the tonnage and carbon emissions threshold, it was possible to achieve higher premiums in deals.
But this level was not widely confirmed by other market participants.
“Getting a premium for ‘green’ [rebar] is very challenging. The market is very weak – even for regular ‘grey’ longs,” a mill source told Fastmarkets.
European HRC market quiet as summer lull drags on
Mills in both northern and southern Europe managed to lift transaction prices slightly in previous weeks, to €560 ($645) per tonne ex-works in the North and €530 per tonne ex-works in the South, helping improve overall market sentiment after a protracted downtrend that began in May.
Further increase, however, failed to be pushed through, with the majority of buy side sources considering new offers of €580-590 per tonne ex-works in the North and 550-555 per tonne ex-works in the South to be elevated and calling them rather “preparation for September” rather than current tradeable levels.
Fastmarkets’ calculation of the daily steel HRC index, domestic, exw Northern Europe was €560 on Friday, up negligibly by € 0.21 per tonne from €559.79 per tonne on July 31.
The Northern European index was down by €3.00 per tonne week on week, but up by €2.50 per tonne month on month.
In Southern Europe, meanwhile, Fastmarkets’ daily steel hot-rolled coil index, domestic, exw Italy was calculated at €528.33 per tonne on Friday, stable day on day.
The index was down by €6.67 per tonne week on week and similarly down month on month.
EU Steel Distribution: Sentiment slips further in July 2025 amid growing uncertainty
The July 2025 EUROMETAL Market Sentiment Survey reveals growing pressure across the European steel distribution sector, with worsening assessments of current activity, a weakening outlook for the coming quarter, and persistently negative price expectations. Stock levels, meanwhile, remain largely unchanged — highlighting a cautious and defensive posture among distributors.
Distributors appear to be responding pragmatically: holding stock steady while bracing for weaker demand and continued margin pressure. Unless broader economic conditions improve, the current trends suggest a challenging third quarter for the European steel and metals distribution sector.
Assessment of current activity
July 2025 shows a notable drop in sentiment compared to June. The sentiment has moved further below the neutral line, reflecting an increasingly negative assessment of current activity. This downturn breaks the relatively flat trend observed in the first half of 2025 and signals growing dissatisfaction or declining demand in real-time operations.
Future activity forecast
The forecast for the next quarter continues to decline, with July showing the lowest forward-looking sentiment in the past six months. The trendline illustrates a clear and consistent downward trajectory since May, confirming worsening confidence in short-term market recovery. Respondents are increasingly pessimistic about business conditions through Q3.
Stock position outlook
Stock expectations remain remarkably stable, with most respondents continuing to expect no major changes in inventory levels. This suggests risk aversion and careful supply chain management, as distributors prefer not to overcommit amid weak activity and uncertain pricing. The consistent bubble size and central positioning point to a wait-and-see approach.
Price development expectations
Sentiment toward pricing remains firmly negative, following a steep drop in May and no recovery since.
July shows a slight uptick compared to June but remains well below the neutral line, suggesting that expectations of price increases are limited. The data shows a continued lack of pricing power in the market, with respondents likely anticipating oversupply or muted demand to keep pressure on prices through the summer.
This analysis is based on the EUROMETAL Market Sentiment Survey, reflecting the opinions of 215 industry participants for July 2025.
Interested in our Sentiment Tool? Contact us.
ArcelorMittal delivers stronger EU profit, lower production
ArcelorMittal’s global steel output remained largely steady, whilst production in Europe saw a slight decline. Yet Europe showed improved financial results, including a skyrocketing Ebitda, the steelmaker says in its second-quarter results monitored by Kallanish.
The striking figure emerging from the report is the steelmaker’s European Ebitda, which surged 69.7% to $627 million in Q2, up from $370m in the first quarter and from $462m in Q2 2024. The improvement reflects a stronger price-cost spread, slightly offset by reduced shipment volumes.
ArcelorMittal’s global crude steel output edged upward year-on-year to 29.2 million tonnes in the first half of 2025, from 29.1mt in H1 2024. Quarterly production remained broadly stable, easing slightly from 14.8mt in Q1 to 14.4mt in Q2 2025. On-year, Q2 output declined moderately from 14.7mt. In Europe, production in the recent quarter fell compared with the previous quarter, primarily due to the planned reline of the Dunkirk’s blast furnace no. 4, which was restarted in mid-July. In the first six months of the year, crude output in Europe stood at 15.5mt, slightly down from 15.6mt in the same period last year. In the second quarter output reached 7.5mt, down from the 7.9mt achieved in the first quarter and from 8,041t of Q2 2024.
“Sales in 2Q 2025 increased by 6.0% to $7.7 billion as compared to $7.2 billion in 1Q 2025, primarily due to a 11.0% increase in average steel selling prices offset in part by a 3.0% decline in steel shipment volumes which was impacted by apparent demand. 2Q 2025 steel shipments were 1.4% lower year-on-year, reflecting a 6% decline in long product shipments whilst flat product shipments were stable,” the reports states.
European sales in the first half reached $14.87 billion, reflecting a y-o-y decrease from $15.66 billion in H1 2024. Ebitda soared in H1 to $997m from $805m in the same period last year. Steel shipment in the six-month period increased slightly on-year to 14.833t from 14.643t the previous year.
According to the report, in Europe demand is holding up relatively well, with apparent flat product consumption forecast to grow 0.5-1.5% in 2025, thanks to limited tariff impacts and easing interest rates. Despite short-term headwinds such as seasonally weaker demand and subdued manufacturing activity, European inventories remain relatively low. In the medium term, Europe may see notable improvement supported by trade policy, the Carbon Border Adjustment Mechanism (CBAM), and increased public investment in infrastructure and defence.
The group’s first-half sales stood at $30.72 billion, compared with $32.53 billion in H1 2024. H1 Ebitda stood at $ 3.44 billion, declining from $ 3.82 billion in H1 last year (see separate article).
Natalia Capra France
Romanian longs prices remain stable amid sluggish demand as market enters vacation mode
Romanian long steel prices, both in the spot market and from the sole domestic rebar producer, have remained stable over the past week, with no significant changes in demand. As the August summer vacation period begins, the market has become noticeably quiet, with limited activity. Most market participants expect a return to normal business operations and demand at the end of the month or in September. With the vacation mood setting in, offers are expected to follow a stable trend over the coming weeks.
“Not much activity at the moment since August has nearly started, but by the end of the month we will definitely see a comeback in both prices and demand,” a trader told SteelOrbis.
The domestic rebar producer has maintained its pricing for another week, with ex-works offers holding firm at €585-590/mt. Similarly, retail market prices across Romania have shown no variation, continuing to be heard within the €580-595/mt ex-warehouse range.
A comparable trend is seen in the wire rod market, where trading activity remains subdued and most suppliers are quoting steady prices between €580-590/mt ex-warehouse.
On the other hand, in the import market, activity has been limited as the entire European market is expected to enter vacation mode in August. As a result, there has been little interest of deal-making, and most price offers have remained stable over the past week. According to sources, rebar offers from Bulgaria have remained unchanged from the previous week, standing at €605-615/mt CPT for August shipment. Similarly, offers from Greece have held firm, with rebar quoted at €585-590/mt CFR and wire rod at €580-585/mt CFR for the same period. Additionally, it has been reported that rebar from Italian and Hungarian suppliers has been offered to western Romania at €590-600/mt CFR.
Meanwhile, suppliers outside the EU have shown mixed pricing trends for August-September shipments. Egypt has kept its offers steady, with rebar priced at €485-490/mt CFR and wire rod at €500–505/mt CFR. In contrast, Turkish rebar offers have increased slightly over the past week, now quoted at €485-500/mt CFR, based on an exchange rate of €1 = $1.14 and estimated freight costs of €15-20/mt. Although interest in EU-origin offers remains low, some buyers are showing interest in Turkish longs, encouraged by the current exchange rate. According to sources, this may lead to some bookings for the October shipment.