Italian coil derivatives slide amid weak market sentiment
Prices for Italian coil derivatives continue to decline, with sheet values down by €30–40/tonne ($34-46) compared to May, mirroring similar drops in welded tube prices, according to sources at distribution and service centres.
No upward price adjustments are currently anticipated, as the market remains in a broad downturn driven by falling coil prices both within Europe and for import. The continued decline is affecting the entire value chain, from raw materials to finished steel products. A major distributor voices concern over the persistent erosion of prices, noting the devaluation of inventories. Despite this, he emphasises the need for distributors to maintain sufficient stock levels and continue purchasing in small weekly volumes. Another distributor adds: “Our clients are aware that prices are falling and are holding off purchases, waiting to reach the bottom.”
Sales activity is expected to remain sluggish throughout the week, with little improvement projected until coil prices stabilise. Meanwhile, high processing costs and fierce competition are severely compressing margins at service centres, which some sources describe as virtually non-existent, Kallanish notes.
Hot rolled sheet prices have declined to €660-670/t delivered, while pickled material is now quoted at €690/t delivered, according to multiple sources. A major buyer of tubes and sheets reports a sharp decline in tube prices, citing a rise in commercial discounts from 37–38 points last month to 42–43 points currently. Larger buyers are reportedly securing even steeper discounts. According to a steel purchasing group, the market is nearing a bottom for hot rolled coil prices, with €530-550/t ex-works for European-origin material considered a potential floor. This level may consolidate next month, coinciding with an expected return of buying interest. Following the typical summer slowdown across EU markets, coil prices are forecast to rebound around September due to CBAM, which could lift both coil and derivative product prices.
Tube demand has weakened, reflecting the broader industrial downturn. However, sources note that demand was relatively healthy prior to the recent price correction in coils. Despite softer input costs, margins for re-rollers remain under pressure, squeezed by competitive pricing, weak end-user demand and expectations of heavy duties on their import purchases.
Looking ahead, July consumption for coil derivatives is expected to stay subdued, with distributors reporting medium-to-low stock levels, sufficient to meet the current reduced demand but limiting any near-term restocking activity.
Natalia Capra France
UK Infrastructure Strategy to support domestic steel sector
The UK government’s new Infrastructure Strategy has been welcomed as supportive for the domestic steel sector, Kallanish observes.
Industry association UK Steel welcomed the move noting the developments worth “billions of pounds,” would bring opportunity for steelmakers. However, it noted that a competitive environment remains vital.
It highlighted that millions of tonnes of steel will be needed for the Infrastructure Strategy investments in new nuclear capacity, regional transport, schools and prisons, announced by the Government. The association also highlighted Chancellor, Rachel Reeves, saying in her recent Spending Review speech that these projects should be made using UK-made steel.
It added that the announcement offers businesses clarity over the Government’s long term public procurement plans and how steel companies can support these ambitions and grow their own production. However, it noted that ongoing market confidence for steel companies will be cemented with truly competitive electricity prices, strategic domestic public procurement and reinforced trade defences.
UK Steel director-general, Gareth Stace, said: “Where public money is involved, British contracts should buy from British steel firms, boosting thousands of jobs and supply chains across the United Kingdom. The Infrastructure Strategy and forthcoming pipeline means the steel industry can take full advantage of these opportunities.”
“UK steelmakers are holding up their end of the bargain, working closely with the Government on reforms to the Policy Procurement Note for Steel and a digital steel catalogue to ensure procurement teams know what steel we make and where,” he added.
“To secure the success of our steel companies and the Government’s ambitions, the infrastructure plans must go hand-in-hand with competitive electricity prices, strategic domestic procurement and a new trade defence mechanism in 2026 to handle the influx of imported, high-emission steel,” he concluded.
Meanwhile, the British Constructional Steelwork Association also welcomed the strategy and said it was a “strong signal of intent to deliver not only infrastructure, but also industrial resilience and regional growth.”
It praised the commitment to reform public infrastructure procurement, which it said valued whole-life performance over lowest upfront price. As well as clearer, longer-term project pipelines that support investment in UK-based fabrication capacity and skills.
It also welcomed the shift towards prioritising domestic supply chains to support sustainability, employment, and strategic national capabilities.
“The constructional steelwork sector is ready to build the infrastructure of the future – greener, safer, and made right here in the UK. Let’s seize this opportunity to turn strategy into delivery,” it added.
Carrie Bone UK
ArcelorMittal cancels DRI-EAF decarbonisation investment in Germany
ArcelorMittal has suspended its planned €1.3 billion ($1.5 billion) direct reduced iron and electric arc furnace investments aimed at decarbonising its German operations in Bremen and Eisenhüttenstadt.
The decision marks a significant shift in the group’s decarbonisation roadmap for these sites, where DRI-EAF technology was intended to replace traditional blast furnaces, Kallanish notes.
Under the agreement between ArcelorMittal and the German government, which included state financial support, construction of the DRI-EAF facilities at Bremen and Eisenhüttenstadt was scheduled to commence by June 2025.
“ArcelorMittal Germany has been obliged to formally notify the government that it cannot proceed with these investments, given the realities of the market and the economics of low-carbon emissions steelmaking,” the steelmaker says.
It is unlikely to meet its 2030 carbon emissions target amid slower-than-expected progress in the energy transition, including delays in green hydrogen becoming viable and the lack of competitiveness of natural gas-based DRI.
“Full implementation of existing NDCs by 2030 would only cut emissions by up to 10% from 2019 levels, far short of the 28% needed for 2°C and 42% for 1.5°C. Meanwhile, the European steel market is under unprecedented pressure, with weak demand and high levels of imports.” the note states.
ArcelorMittal is calling on the European Commission to take action on several key challenges impacting its decarbonisation strategy and market competitiveness.
The company points to rising steel imports amid weak EU demand and the need for effective support from tools like the Carbon Border Adjustment Mechanism. It also noted the high cost of electricity, which is critical as the shift from blast furnace to EAF increases reliance on gas and power rather than coal. Electricity prices in Germany are currently too high compared to other countries in Europe.
“We appreciate the financing offered by the federal government of Germany and the state of Bremen as well as the support of the state of Brandenburg for this project. But even with the financial support, the business case for moving ahead with this transformation is not strong enough, which shows the scale of the challenge,” says Geert van Poelvoorde, ceo of ArcelorMittal Europe.
“As it stands, the European steel industry is under unprecedented pressure to remain viable, and that is without the additional costs required to decarbonise,” he adds.
He remains concerned the EC’s Steel and Metals Action Plan may not go far enough or happen quickly enough.
The high levels of imports are a major concern – we need imports for flat products to be limited to 15% – which means a reduction of around 50% compared with what we are seeing today,” he warns.
ArcelorMittal is also halting decarbonisation investments in France and Belgium. However, it has confirmed its €1.2 billion commitment for its first EAF in Dunkirk, where energy prices are comparatively moderate (see Kallanish passim). In Gent the steelmaker is considering closing its Steelanol plant.
Natalia Capra France
European HRC prices decline on weak demand, import interest stays low despite more price cuts
Domestic HRC prices in Europe have declined further this week, as weak demand and bearish sentiment continue to weigh on the market. Most buyers are refraining from new purchases, citing sufficient stock levels and expectations of further price erosion. As a result, trading activity remains subdued, with a cautious and defensive tone prevailing across the market. At the same time, import buying has remained limited and is largely focused on material for clearance before October 1, after which activity is expected to pause.
More specifically, most local HRC prices from mills in northern Europe, mainly for July deliveries, have been voiced at €600-620/mt ex-works, the same last week, however, tradable prices in northern Europe have declined further this week by around €10/mt week on week to €590/mt ex-works level. “The HRC market is expected to face further downward pressure over the summer, some estimated €570/mt ex-works as a workable price in north in the short run. Buyers anticipate a modest rebound only when summer ends or in the next quarter,” a market insider told SteelOrbis.
Meanwhile, in Italy, most offers from mills have dropped at €570-590/mt ex-works from €580-600/mt ex-works last week. At the same time, workable prices have dropped as well, falling to €550-555/mt ex-works levels, down by at least €20/mt week on week. According to sources, buyers remain cautious, with some speculative deals dipping to €535/mt ex-works – though not yet reflective of actual market levels. Still, sentiment suggests HRC prices have not reached bottom, leaving room for a further softening.
In the meantime, import trading activity in southern Europe has remained subdued this week, with most offers for import HRC in southern Europe voiced at €470-530/mt CFR, depending on the supplier, compared to €490-540/mt CFR last week. HRC offers from one of Indonesian mills have been reported at the lower end of the range or around €470-490/mt CFR, down from €490/mt CFR last week. However, according to sources, “market is not ready to buy from them and is using this price to negotiate with others”.
Besides, offers from India have been reported at $600/mt CFR southern Europe, which translates to around €520/mt CFR, down by €5-10/mt week on week. “Buyers are pushing for lower prices or around $590/mt CFR,” a market insider told SteelOrbis. At the same time, a deal for ex-India HRC has been signed at $610/mt CFR or around €530/mt CFR Antwerp, though according to sources, “it likely included extras, like 2 meters wide HRC”.
Meanwhile, offers from Turkish suppliers have varied depending on the source, with most quoted at €515–530/mt CFR, duty paid, reflecting a €5-10/mt decline week on week. However, lower offers for ex-Turkey HRC have also been heard in the market, at around $550/mt CFR or approximately €480/mt CFR, duty paid.
“Buyers are currently purchasing material for clearance by October 1st, after which activity is expected to come to a halt. This trend applies primarily to HRC, while galvanized product purchases have already stopped. Most customers are now adopting a wait-and-see approach as they await clarification on the new regulations, particularly regarding Carbon Border Adjustment Mechanism (CBAM),” a Spanish trader told SteelOrbis.
$1 = €0.87
George Ibbotson to distribute Alleima’s strip steels in UK
Sweden-based specialty steel producer Alleima has announced that it has formed a partnership with UK-based steel distributor George Ibbotson Ltd. Through the collaboration, George Ibbotson will sell and distribute Alleima’s premium strip steels throughout the UK market.
This collaboration is part of Alleima’s strategy to build strong local partnerships that bring its high-quality materials closer to customers. “We are excited to team up with George Ibbotson Ltd. Their experience and long-standing relationships in the industry make them a valuable ally as we continue to expand our reach,” Roberto Torresani, sales director at Alleima, said.
EU launches Türkiye hydrogen project led by BOTAŞ
The European Commission has launched the tender procedure for the technical assistance project “Boosting Green and Low-Carbon Hydrogen in Türkiye,” with Türkiye’s state-owned energy company BOTAŞ as the main beneficiary.
Published on 12 June via the EU Funding & Tenders Portal, the project is funded under the Instrument for Pre-accession Assistance (IPA III) with a total budget of €3 million, Kallanish notes.
The project aims to support the development of a national green and low-carbon hydrogen ecosystem, enhance institutional capacity, and strengthen Türkiye’s technical know-how in the hydrogen sector. It will involve a technical assessment of BOTAŞ’s infrastructure for hydrogen readiness, the development of a Hydrogen Master Network Plan, and the implementation of extensive capacity-building initiatives targeting relevant stakeholders.
BOTAŞ, or Petroleum Pipeline Corp, is engaged in a wide range of activities, including oil and natural gas pipeline operation, LNG and FSRU terminal operation and port services, as well as the design, engineering, land survey, expropriation and construction of oil and gas pipelines and compressor stations. The company is also active in the trade and storage of natural gas and LNG, and participates in international oil and natural gas transportation projects.
Elina Virchenko Bulgaria
Dudelange facility left in limbo after buyer withdrawal
No prospective buyers have emerged for Liberty Steel’s Dudelange facility following the suspension of the sales process last month, after rumoured bidder Tosyali reportedly withdrew.
Informed sources tell Kallanish that the primary objective of Dudelange’s court-appointed receiver and the Luxembourg government remains the sale of the facility. However, despite receiving enquiries from interested steel companies, no formal bids have materialised.
The plant employs approximately 140 workers, following recent staff reductions. Union representatives have expressed scepticism regarding the likelihood of a sale. In coordination with the government, the unions are now organising a “job day” initiative aimed at helping employees transition to alternative employment opportunities.
“Tosyali had a good industrial project for Dudelange,” a source explains. “They were going to invest and expand into the European market. The official reason for the withdrawal is the stringent EU import quotas on coils, which would have prevented them from supplying Dudelange with coil volumes produced in Turkey.”
The facility has remained inactive for more than two years, with the exception of a production test conducted in July 2024. The Dudelange site is currently being kept operational by a small team performing essential equipment maintenance. The Luxembourg government has designated Olivier Wagner to serve as the receiver. He is reportedly pessimistic about the prospects of a future sale.
The government retains ownership of the land and is expected to issue new concession rights to the potential owner. Tosyali was not available to comment before press deadline.
In December, the Luxembourg commerce tribunal declared the Dudelange facility bankrupt (see Kallanish 4 December 2024). In addition to Dudelange, Liberty plans to divest its Magona facility in Italy and its Belgium-based Liege plant. The three businesses combined possess rolling capacity exceeding 2.5 million tonnes/year.
The Magona facility remains operational but is running at or below half of its production capacity. According to a source in Italy familiar with the matter, a potential buyer has been identified, and the sale process is now underway. The source attributes this progress largely to strong involvement from the government, which has actively pushed to secure a buyer for the site.
Liberty Steel’s Liège facility in Belgium was declared bankrupt on 22 April. Potential buyers include NLMK and ArcelorMittal, according to sources.
Liberty Galati in Romania has recently restarted pig iron production at blast furnace no.5, after an almost year-long stoppage. Poland’s Huta Czestochowa has produced over 100,000t of steel since resuming production in January after a year-long hiatus. It was declared bankrupt last year under previous owner Liberty Steel. In February Liberty Ostrava’s insolvency administrator initiated the sale process of the bankrupt steel plant with the approval of the creditors committee (see Kallanish passim).
Natalia Capra France
Buyer caution drives down Italian coil prices
The Italian and broader European coil market is witnessing a downward trend in pricing. European prices are experiencing a decline to align with the lower import levels. The current sales environment for mills in Europe is characterised by a notable lack of momentum, as buyers are predominantly taking a cautious stance.
Certain larger buyers, however, are prepared to engage in and have already implemented import and European material deals, contingent upon securing competitive pricing. European steelmakers are currently experiencing short lead times, with reports suggesting that one company has sold in Italy as well as other EU nations at a price slightly exceeding €530-550/tonne ($613-636/t) delivered. A base price of €570/t delivered has also been heard. However, the outlook for prices in the upcoming weeks suggests a consolidation of drops to align with import levels. Buyers are in a favourable position, given the substantial stock levels and the weakened demand in downstream sectors.
The service centres and re-rollers who spoke to Kallanish suggest that there is currently no urgent demand for purchasing, and the decline in downstream products such as sheets and tubes is exerting pressure on margins.
This week, market participants, including sellers and trading sources, report an uptick in interest regarding potential buying of coils this week. In the upcoming week, it is anticipated that buyers will re-enter the market. The decision to re-enter the European domestic market or pursue imports will depend on the concessions that EU producers are prepared to accept to ease sales.
Italy is currently facing a downward trend in HRC offers originating from Turkey and the Far East. Current offers from Turkey are noted to be within the range of €480/t cfr including duty. The Turkish offers starting at €500/t are inclusive of duties. Several buyers are evaluating the potential acquisition of this material. Considering the first proposal, HRC is available at a price range of €520-530/t delivered to a warehouse.
Indonesia HRC is offered at €470/t cfr. Other Asian producers, such as those in Vietnam and Thailand, are setting their large-tonnage vessel prices in the range of €500-510/t cfr.
A source in the non-Italian steelmaking sector indicates that there are expectations of price increases in September attributed to the Carbon Border Adjustment Mechanism (CBAM). However, the scenario does not yet support the prices of the European market. A foreign trading source operating in Europe says producers outside the EU expect the commission to implement modifications to the safeguard mechanism. It may permit limited tonnages to enter the European market. Implementation of the melt-and-pour clause will exert additional additional pressure on imports.
Natalia Capra France
Negative sentiment persists in European steel HRC market
The mood in the European market for steel hot-rolled coil remained pessimistic on Thursday June 19, with demand being limited and import offers continuing to exert pressure.
Official offers from mills in Northern Europe still came at €600-620 ($634-656) per tonne ex-works and somewhat below, while workable prices were estimated within the range of €580-600 per tonne ex-works.
Trading activity has been generally muted in recent days with Germany and Austria celebrating the religious holiday of Corpus Christi on June 19, which made the market particularly quiet that day.
Those few who were present in the market had bearish expectations.
“Mills in Northern Europe are struggling to find orders at €600 per tonne ex-works, so it is only a question of time until we see €580-585 per tonne ex-works in offers, but I doubt this will be the end of downward spiral,” one trader said.
Fastmarkets’ calculation of the daily steel HRC index, domestic, exw Northern Europe, was €590.00 ($675.93) per tonne on June 19, down by €3.33 per tonne from €593.33 per tonne on Wednesday.
In Italy, official HRC offers were heard at €570-580 per tonne ex-works, with €565-575 per tonne ex-works being negotiable, according to one seller, and bids coming in below €560 per tonne ex-works.
Fastmarkets’ daily steel hot-rolled coil index, domestic, ex-works Italy, was calculated at €568.40 per tonne on Thursday, down from €571.88 per tonne on Wednesday.
In imports, Indonesian HRC was quoted at €470–480 per tonne CFR Italy.
Despite weak demand and market uncertainty, some market sources said that Indonesian HRC could be negotiated as low as €460-470 per tonne CFR.
Algerian coil was available at prices below €500 per tonne CFR Italy for July–August shipment. Vietnamese material offers came at €510 per tonne CFR, while Indian and Turkish offers were heard at €530-540 per tonne, with the Turkish price including duty.
Some market sources reported Turkish and Indian offers as low as €515 per tonne, duty paid and CFR respectively, but this could not be confirmed at the time of publication.
European steel CRC, HDG prices still dropping on soft demand
Downstream flat steel prices continued to fall in Europe in the week ended Wednesday June 18, with depressed demand and a seasonal slowdown still affecting the market, trade sources told Fastmarkets.
Northern Europe
Industry sources estimated the workable market price for cold-rolled coil at €690 ($792) per tonne ex-works during the week to Wednesday, falling by €10 from €700 per tonne ex-works the previous week.
But offers were also heard at €685 per tonne ex-works.
As a result, Fastmarkets’ weekly price assessment for steel cold-rolled coil, domestic, exw Northern Europe, was €685-690 per tonne on Wednesday, falling from €700-720 per tonne the previous week.
Market sources cited “weak demand” and “market uncertainty” as the main factors behind the recent price drops, with mills redirecting their attention from CRC to other steel products.
“Amid current market conditions, mills are shifting focus away from CRC, with some buyers reporting no recent offers for cold-rolled material,” a buyer source told Fastmarkets. “Mills are largely steering clear of CRC, redirecting their efforts toward galvanized products.”
Prices for cold-rolled coil imported into Northern Europe also dropped in the week to Wednesday. Market sources reported offers from Asia at €640 per tonne CFR, compared with €650-655 per tonne CFR in early June.
Fastmarkets’ weekly price assessment for steel cold-rolled coil, import, cfr main port Northern Europe, was €640-660 per tonne on Wednesday, widening downward from €650-660 per tonne the previous week.
Meanwhile, the market for domestic hot-dipped galvanized coil also showed downward shifts during the assessment period.
Trade sources estimated the workable market for HDG at €700 per tonne ex-works this week, compared with €700-710 per tonne ex-works during the previous assessment period.
But sources also reported offers of HDG at €690 per tonne ex-works.
Therefore, Fastmarkets’ weekly price assessment for steel hot-dipped galvanized coil, domestic, exw Northern Europe, was €690-700 per tonne on Wednesday, falling from €700-710 per tonne in the previous week.
Import prices for HDG to Northern Europe showed no change during the assessment period.
Fastmarkets’ weekly price assessment for steel hot-dipped galvanized coil, import, cfr Northern Europe, stayed at €700-740 per tonne on Wednesday.
Southern Europe
Import prices for CRC in Southern Europe also fell in the week to Wednesday, according to market sources.
Reported offers of CRC dropped as low as €590 per tonne CFR in the week, while the lower end of offers from the previous week had hovered around €620-625 per tonne CFR.
Fastmarkets’ weekly price assessment for steel cold-rolled coil, import, cfr Southern Europe, was €590-630 per tonne in the week, falling from €620-635 per tonne in the previous week.
Import prices for HDG remained stable during the assessment period, however.
Fastmarkets’ weekly price assessment for steel hot-dipped galvanized coil, import, cfr main port Southern Europe, was €670-700 per tonne on Wednesday, unchanged week on week.
Domestic CRC and HDG prices were also stable in the week to Wednesday.
Fastmarkets’ weekly price assessment for steel cold-rolled coil, domestic, exw Southern Europe, was €680-700 per tonne on Wednesday, unchanged week on week.
Similarly, the weekly price assessment for steel hot-dipped galvanized coil, domestic, exw Southern Europe, was €700-720 per tonne on Wednesday, also unchanged week on week.