Global crude steel production edges down 0.3% y-o-y in April
Global crude steel production totaled 155.7 million mt in April, down 0.3% year over year, according to World Steel Association data published May 22.
This brought the January-April volume to 624.4 million mt, slightly lower by 0.4% year over year.
China produced 86 million mt of crude steel in April, steady from the previous year, accounting for 55.2% of the total global crude steel output, with January-April output up 0.4% to 345.4 million mt.
India, the world’s second-largest steel producer, saw production jump 5.6% in April to 12.9 million mt, followed by Japan at 6.6 million mt, down 6.4% year over year, the data showed.
For January-April, India produced 53.2 million mt and Japan produced 27 million mt, up 6.9% and down 5.3%, respectively, year over year.
US output in April edged 0.3% lower year over year to 6.6 million mt, with the four-month total at 26.4 million mt, steady from the previous year.
Russia produced an estimated 5.8 million mt in April, down 5.1% from April 2024, and South Korea produced 5 million mt, down 2.5% over the same period. Their four-month volumes were 4.5% and 3.4% lower at 23.4 million mt and 20.5 million mt, respectively.
Turkey’s production rose 7% year over year to 3 million mt in April, with its January-April volume down 1% to 12.3 million mt.
Germany, the largest steel producer in Europe, saw crude steel production drop 10.1% year over year to 3 million mt, the data showed, taking the four-month total to 11.4 million mt, down 11.9% year over year.
In the EU, crude steel production fell 2.6% year over year to 11.1 million mt, the data showed, with the January-April volume at 43.5 million mt, 2.4% lower over the same period.
Platts, part of S&P Global Commodity Insights, assessed domestic HRC prices in Northern Europe at Eur630/mt ex-works Ruhr May 21, up 12.5% since the start of 2025.
Brazil’s April crude steel production also dropped 3.1% year over year to 2.6 million mt, while Iran’s increased 4.6% to 3.3 million mt. Their January-April volumes were 11 million mt and 10.6 million mt, respectively, down 0.3% and 8% from a year ago.
Crude steel data covers 69 countries, which report to worldsteel, and account for about 98% of the world’s crude steel production.
European lawmakers approve carbon border tax reform on overwhelming majority
The European Parliament voted with a decisive majority to endorse a proposal to streamline the EU’s carbon border adjustment mechanism, or CBAM, by moving to a mass-based threshold and tweaking the timeline for the sale of carbon pricing certificates.
The simplification measures, part of the European Commission’s Omnibus package presented in February 2025, passed with 564 votes in favor, 20 against and 12 abstentions, clearing the way for negotiations with the European Council on the final shape of the legislation.
“The CBAM is a crucial instrument to help the EU prevent carbon leakage and incentivize climate action outside the EU. I am therefore glad that Parliament decided not to reopen other provisions of the CBAM legislation,” Antonio Decaro, a member of the European Parliament, who is the chair of the Committee on the Environment, Climate Change and Food Safety, said.
“This approach enables us to simplify matters for companies without dismantling or weakening the CBAM,” he said. “We will continue to work quickly to bring legal clarity and certainty to all CBAM stakeholders.”
CBAM tweaks
Under the changes, importers will be able to purchase CBAM certificates starting in February 2027 rather than from Jan. 1, 2026, to cover the emissions embedded in their imports for 2026, giving businesses more time to adapt to the new carbon pricing mechanism.
The proposal also includes a 50 mt de minimis threshold that would exempt 90% of importers while still covering 99% of CO2 emissions from key industrial imports.
Efforts to simplify the EU’s CBAM reflect a broader struggle within the bloc to balance environmental goals with economic realities, particularly as European industries face competitive pressures from regions with less stringent climate policies.
The European Commission had said the changes to CBAM were being made to enhance the competitiveness of the bloc’s industry by exempting small importers and reducing the administrative burden for many companies.
In early 2026, the Commission will assess whether to extend the scope of the CBAM to other ETS sectors at risk of carbon leakage.
“The bigger CBAM issues like export rebates and expansion to downstream products are still unresolved,” Ingvild Sorhus, manager of EU carbon analysis at Veyt, said. “The upcoming report on CBAM scheduled for the [Q3 2025] will be forward-looking and policy-design oriented. The report is expected to lead to a legislative proposal in Q4 2025, with exports, circumvention protection, and downstream products likely on the docket.”
CBAM essentially imposes a carbon tariff on emissions-intensive commodities imported by the EU, including aluminum, cement, electricity, fertilizers, hydrogen, and iron and steel. The aim is to level the playing field for EU companies, as most exporting countries do not have a carbon price as high as the EU Emissions Trading System or lack a price on emissions altogether.
Carbon prices vary significantly globally. Platts, part of S&P Global Commodity Insights, assessed EU Allowances for December 2025 at Eur72.69/mtCO2e ($82.24/mtCO2e) May 21.
This compares with China’s compliance emission allowance, which was valued at Yuan 70.42/mtCO2e ($9.79/mtCO2e) May 16, according to the Shanghai Environment and Energy Exchange.
European HRC market sideways amid domestic price pressure
European domestic hot-rolled coil prices saw further signs of weakness on May 22, as the market continues to grapple with weakening demand and increasing uncertainty.
“Everyone expects an ongoing decrease,” said a mill source, summing up the sentiment that continues to weigh on the European hot-rolled coil market.
The source also added that the current downward price trend is due to reduced offers by the market leaders.
“The only thing is the market leader reduced offers and took orders below their target, they had 10 months of high prices, and pushed down 50-70 euros in one week,” said the mill source. “Now they don’t give discounts anymore for July/August delivery.”
Tradable values were heard May 22 at Eur620-640/mt while a second-hand deal was heard at Eur630/mt.
Resistance is being put up by mills that are trying to set a floor price.
“Mills are trying to hold the line, but the real risk is still ahead, especially if spot demand stays this weak,” said a distributor source.
In Italy, prices decreased day over day as sources cited tradable values at Eur610-620/mt ex-works Italy.
“In Italy, HRC is being talked closer to Eur610/mt, with some re-rollers quoting Eur610-620/t ex-works,” said a distributor source.
On imports, the distributor source also cited weakening import prices, which continue to put pressure on the domestic market.
“Import offers (e.g., Indonesia at Eur505–515/mt CIF) continue to pressure domestic prices. So we’ve moved a bit below the earlier Eur640/620 levels,” said the distributor source. “This week, we see that HRC import offers to Antwerp have softened slightly.”
Import offers were reported at Eur540/mt CIF Antwerp for material originating from Indonesia, Vietnam, India and Turkey.
Platts assessed domestic HRC in Northwest Europe at Eur630/mt ex-works Ruhr, stable day over day, and in Southern Europe at Eur610/mt ex-works Italy, down Eur5 day over day.
Platts assessed imported HRC in Northern Europe at Eur535/mt CIF Antwerp, and in Southern Europe at Eur525/mt CIF Italy, both stable day over day.
Euro area construction output up 0.1 percent in March from February
According to first estimates released by Eurostat, the Statistical Office of the European Union, in March this year the seasonally-adjusted production of the construction sector in the European Union member states (EU-27) increased by 0.1 percent compared to February and decreased by 0.7 percent compared to the same month of 2024. In February, production in the construction sector had moved down by 1.1 percent month on month.
In the euro area, the seasonally-adjusted production of the construction sector in March went up by 0.1 percent month on month and down by 1.1 percent year on year. In February, production had decreased by 1.2 percent month on month.
Building construction in the EU-27 in March moved up by 0.8 percent month on month and down by 1.6 percent year on year, while civil engineering output in the region increased by 2.5 percent month on month and increased by 0.8 percent year on year. In the euro area, building construction was up by 0.9 percent month on month and down by 2.9 percent year on year, while civil engineering output in the region rose by 4.1 percent month on month and by 0.8 percent year on year.
As compared to February, construction output in March increased by 5.9 percent in Austria, by 4.6 percent in Romania, and by 3.5 percent in the Czech Republic, while it decreased by 4.3 percent in Portugal, by four percent in Slovenia and by 3.7 percent in Poland.
As compared to March 2024, construction output in March this year increased by 12.0 percent in the Czech Republic, by 8.8 percent in Bulgaria and by 7.4 percent in Austria, while it decreased by 11.6 percent in Slovenia, by 6.6 percent in Belgium and by six percent in Spain.
US tariffs hit EU stainless longs market
The European market for stainless long steel, including wire rod, bars, and other niche products, is experiencing a persistent decline, with prices reaching their lowest levels in recent years, according to supplier sources.
Two mill executives indicate
In response to contracting consumption, Europe is experiencing what can be characterised as “a new normal”, with mills adjusting their operations by idling equipment for several days each month to align with current demand levels. The stainless longs segment is going through “a recessive phase, not only in Europe but also in the US and Asia”, another northern European mill source comments.
US tariffs are significantly affecting producers in both Asia and Europe. Asian material supply, particularly from China and India, is currently experiencing a shift in direction towards Europe. EU quotas are effectively curbing robust Asia-origin supply but are not entirely halting the flow of material into the market, which “remains huge”, the source adds.
One mill reports ongoing sales in the US; however, US customers have prudently scaled back their orders, opting to purchase only what is essential to mitigate the impact of tariffs. EU mills are believed to have lost about 30% of their sales to the US as a consequence of tariffs.
The EU safeguard revision has proven to be ineffective for the European stainless longs sector. There has been a lack of action at European level to safeguard the segment from significant imports, which is largely attributed to influential lobbying by buyers.
End-user sectors have reported declining longs consumption over the past year. The US oil and gas sector has curtailed investment. One source indicates the current demand driver in Europe is the defence sector, which is anticipated to sustain its momentum due to projected capacity enhancements.
Questioned about potential projections for recovery, both sources concur “there is no outlook”. Certain macroeconomic developments might nevertheless lead to favourable outcomes for the market, including the resolution of the Russia-Ukraine conflict.
European mills are adopting a long-term perspective, navigating challenges using strategic cost management, while simultaneously pursuing investments focused on vertical integration and expansion. The strategy, which has also been adopted by some European flats producers, seeks to mitigate businesses’ exposure to the cyclical dynamics of the steel industry while diversifying production.
Coil producer Aperam has purchased US specialty steel producer Universal Stainless & Alloy Products as part of its strategy to enhance market position, expand geographic footprint, and diversify product offering. It is targeting high-growth sectors, including aerospace and industrial applications.
At its Imphy site in France, the Luxembourg-based producer is doubling capacity and boosting wire rod supply, serving the aerospace, automotive, and welding consumables industries.
Italian longs producer Cogne Acciai Speciali, a subsidiary of Walsin Lihwa, also intends to strengthen its position in the special steel industry by boosting its portfolio and expertise in the global market. The steelmaker recently expanded its operations by acquiring ComSteel Inox, its main stainless steel scrap supplier, and a portion of Outokumpu’s long products business in Degerfors and Storfors, Sweden (see Kallanish passim).
Cogne and Walsin’s growth strategy focuses on increasing market share in Europe and Asia while enhancing the group’s presence in the US market.
Natalia Capra France
Heavy steel plate prices in Europe pulled down by low demand, high stocks
Market participants also expressed concern about the future effects of US import tariffs on the European steel markets with trade negotiations continuing.
Italy
Steel heavy plate prices fell in the latest pricing session, with the market “under pressure from low demand” and limited buying, market sources said.
Fastmarkets’ weekly price assessment for steel domestic plate, 8-40mm, exw Southern Europe, was €620-630 ($703-714) per tonne on Wednesday, down by €10 from €630-640 per tonne on May 14.
“Some Italian re-rollers have lead times as short as just 10 days [because] they need to fill order books,” a trader source said.
Deals were reported at €620-630 per tonne.
New import orders into Southern Europe have been “minimal” due to high stocks of both domestic and imported plate, available at low prices with short delivery times.
Northern Europe
In Northern Europe, the domestic commodity-grade steel heavy plate market widened downward, despite plate mills targeting higher prices, trade sources said.
A German mill was heard selling plate at €700 per tonne from one location and at €670 per tonne from another.
Fastmarkets’ weekly price assessment for steel domestic plate, 8-40mm, exw Northern Europe, was €660-700 per tonne on Wednesday, widening downward by €10 per tonne from €670-700 per tonne a week earlier.
“Customers are still only purchasing what they urgently need to continue their ‘commodity grade’ business model,” a second trade source said.
Headded that more consistent business was seen in other speciality sectors of the steel plate industry – for example, in products used for offshore foundations or monopiles for offshore windfarms, with the delivery times for such speciality products having been extended.
Nordwest lifts steel revenue in first quarter
Nordwest Handel, one of two big purchasing cooperatives for steel, hardware and household technology in Germany, lifted steel segment revenue in the first quarter by 8% on-year to €393 million ($447m).
The organisation attributes the strong increase to higher prices in comparison with Q1 2024, but also to a higher tonnage sold, which it does not specify. Nordwest handles roughly 1 million tonnes/year of steel.
Despite weak construction activity, it lifted import volumes and forged new partnerships with suppliers, Kallanish understands. Nordwest is a partner in the pan-European purchasing cooperative Astedis. It however maintains that 2025 will remain a difficult year for steel distribution, on account of the critical construction sector weakness.
The Q1 increase was foreshadowed by sales growth of 4.4% in the second half of 2024. However, full-year 2024 remained below the preceding year by a considerable 11%, with sales of €1.509 billion, due to a drop in demand and prices, Nordwest says.
Christian Koehl Germany
Fives installs combustion system at Megasa’s SN Maia
Technology supplier Fives tells Kallanish it has completed the upgrade of the combustion system at Megasa’s SN Maia Siderurgia Nacional Maia plant in Portugal.
The oxygen enrichment project, carried out on an existing billet reheating furnace, included new technology aimed at reducing natural gas consumption. The upgrade also involved the potential for on-site oxygen production, lowering operational costs.
The so-called PREMIX equipment injects additional oxygen into the combustion air duct upstream of the burners. This process increases oxygen levels to 25%, resulting in around 6% fuel savings.
The technology was entrusted to Fives’ Spanish unit, which had previously modified the combustion system of the same furnace.
“By introducing additional oxygen, we are improving combustion, which allows for higher temperatures without increasing fuel usage. This contributes to cost savings and lower CO₂ emissions,” explains Fives Spain’s research & development manager, Oiane Gerrikagoitia.
The technology was designed to be easily integrated and have minimal impact on production.
“We were able to perform the majority of the installation while the furnace was still running, ensuring that production continued smoothly and without significant delays,” adds Koldobika Tafalla González, technical director at Fives.
SN Maia is the largest rebar production plant operated by the Megasa Group.
Todor Kirkov Bulgaria
UK Steel welcomes linking with EU carbon markets
Industry association UK Steel has welcomed the agreement by the EU and UK to work towards formally linking their Emissions Trading Systems (ETS), as well as to improve the EU quota for UK sections, Kallanish notes.
It says this will enable better access to the UK’s biggest export market, with 75% of UK steel shipments going to the EU, worth nearly £3 billion ($4 billion) annually. It points out it has advocated the linking of the carbon markets since 2019, noting the UK’s minimal size and illiquidity.
The move will exempt UK steel exports to the EU from Carbon Border Adjustment Mechanism (CBAM) costs and administrative burdens.
“We understand that the improved EU steel quotas will relate to arrangements in relation to the EU’s steel safeguards, which will ease export restrictions for steel angles and heavy sections,” its statement notes.
The European Commission says the EU and the UK agreed to safeguard historic tariff-free trade in steel products under category 17. The EU will thus make a legislative proposal for a country-specific quota for UK steel in category 17 – angles and sections – under the current safeguard.
Without linkage or the improved market access in place, UK producers faced the prospect of increased trade friction, UK Steel notes. EU importers would have had to pay CBAM levies and face tight safeguard quotas on UK steel products – costs that would likely be passed back to UK exporters or result in lost market share.
Gareth Stace, director general at UK Steel, says: “UK Steel welcomes the formalised plan to link the UK and EU Emissions Trading Schemes and new, improved market access. This will be a significant step in reducing trade frictions in steel with the EU, our biggest export market, by ensuring equivalent carbon costs and easier exports. It also eliminates the risk of costs from the EU Carbon Border Adjustment Mechanism, where the burden particularly falls on SMEs.”
“Crucially, linking the schemes lowers costs for the sector and provides long-term security, particularly if UK ETS prices were to exceed those in the EU in the years ahead, making linkage all the more important for competitiveness,” he concludes.
Carrie Bone UK
Overcapacity weighs on Italian stainless flats
May has seen a continued decline in demand in the Italian stainless flat steel market, participants tell Kallanish.
The performance of the coil, tube and sheet markets indicates a persistent state of low sales volumes and pricing pressure. Organisations are indicating reduced order volumes, quicker lead times, and a generally pessimistic forecast. Downstream companies are experiencing significant financial difficulties.
“It is quite challenging to avoid operating in the negative [margins],” states a service centre representative.
Northern European service centres share this view. Prices are falling faster in Italy than in northern Europe, making the situation graver. In comparison to northern European coil and sheet, Italian pricing is approximately €30-50/tonne ($33-56/t) lower.
“Today, we cannot cover costs as we’re receiving cold rolled coils at €2,400/t and over,” the Italian service centre source comments.
A local stainless steel processor notes the substantial supply across the value chain in contrast to the notably weak demand for flat products. The influx of Asian coil being received in the upcoming weeks is likely to exert additional pressure on stock levels and reduce buying of domestic coil.
CRC prices in Italy are at an average of €2,300/t delivered. Steel processors are currently receiving CRC previously bought at a price of €2,400/t delivered and are selling sheet within the range of €2,500-2,550/t.
Hot rolled coil with rough edges is currently set at €2,100/t delivered.
“The market is compromised until August,” the steel processor believes.
Meanwhile, a European mill source also expresses a negative outlook but anticipates that in the latter half of 2025, the market may see fewer imports, due to the start of CBAM on 1 January 2026.
He sees higher stock levels, particularly in Italy. Declining profitability and decreasing prices are hindering processors’ ability to protect the value of their inventory. The Italian processors and mill source note that prices are stable in China and agree that Europe should see some improvement by September or October.
According to Italian steel trade association Assofermet’s latest market note, the oversupply is hindering the anticipated recovery in price levels.
“The limited lead times observed among European producers indicate a lack of depth in their order books. The first-quarter financial results from the main continental producers indicate negative results, which further restricts the potential for price reductions, even in light of the market’s current weakness,” it states.
Mills in Europe are decreasing their prices for June and July delivery. From the high point of the range recorded recently, EU stainless coil values have experienced a decline of over €100/t, while order books continue to face significant pressure (see Kallanish 20 May).
Natalia Capra France