Unions call for emergency meeting as Liberty Dudelange sale collapses
Luxembourg trade unions OGBL and LCGB are demanding an emergency meeting with the economy and labour ministers after Tosyali withdrew from its proposed acquisition of Liberty Dudelange.
“It is imperative that all parties involved immediately come together to define clear, concrete, and immediate solutions for employees,” the unions say in a joint note seen by Kallanish.
The unions previously proposed the establishment of a sectoral redeployment unit, based on the “CDR” model used successfully within the tripartite framework of the steel and aviation industries.
“Beyond employees, the country’s industrial future is also at stake. Measures must be taken to preserve threatened production facilities, especially when their viability has been proven. Luxembourg cannot afford to lose its expertise or see its industrial capabilities erode amid indifference,” the unions add.
Tosyali could not be immediately reached for comment.
The Turkish steelmaking group emerged as a potential buyer for bankrupt Dudelange in February. The unit has approximately 140 employees following a reduction in staff. It has remained inactive for more than two years, with the exception of a production test conducted in July 2024.
Adam Smith Poland
German stockholders’ sales remain modest in Q1
Germany’s stockholding distributors sold 2.47 million tonnes of steel in the first quarter, Kallanish learns from distributors’ federation BDS figures.
The tonnage comes close to that of the corresponding 2024 quarter, with a gain of some 4,000 tonnes. This, however, does not compensate for the steeper year-on-year drop seen last year. In the first quarter of 2024, the tonnage dropped around 5’%, compared with Q1 2023.
Still, this year’s Q1 shows some noteworthy deviations in the product groups. Flat products, which make up roughly 60% of sales among Germany’s stockholders, saw a decline by 30,000t to 1.535mt this year.
BDS does not provide explanations for such changes, which may not be caused by any particular factor. While February’s tonnage was down 40,000t y-o-y, March sales were up by the same rate.
Long products, traditionally accounting for some 30% of the total, saw an increase, by a modest 5,000t y-o-y.
A more noteworthy increase occurred in the “other products” category, which gained 30,000t, to a total of 235,000t. The growth hints at increasing volumes of wire rod, a traditionally uncommon product in warehouses of stockholding distributors.
Christian Koehl Germany
Will UK exemption begin ‘erosion’ of US steel tariffs?
The United Kingdom’s trade deal with the United States could mark the start of an erosion of Section 232 import tariffs and US steel prices.
US President Donald Trump and UK Prime Minister Sir Kier Starmer gave insight into a trade deal which would remove the 25% tariff on UK steel in a media conference yesterday (May 8). It would also reduce the tariff rate on UK-built cars from 25% to 10% for 100,000 units per year, after which a 27.5% tariff would be applied. Rolls-Royce jet engines will also be tariff-free.
President Trump said that, in return, the UK would remove its tariffs on US beef, ethanol, sports equipment and other products and would also buy USD10 billion of Boeing aeroplanes under the agreement.
It has taken over 50 days, since President Trump applied 25% import tariffs on steel, aluminium and automotive imports, for a deal to be announced between the US and one of its closest allies. Details of the US-UK trade deal, which remains subject to further negotiation, are limited, however.
Reducing Section 232’s ‘effectiveness’
Nonetheless, MEPS International US steel market analyst, Laura Hodges, said that the deal could mark the start of a series of trade agreements that reduce the effect of tariffs on US steel prices.
“The effectiveness of Section 232 steel tariffs is being chipped away again with the UK trade deal,” said Hodges.
“Reportedly the UK and US will now have a 0% tariff on their bilateral steel trade. This is the beginning of the exemptions that eroded Section 232 tariffs in 2018/2019.”
She added: “US steel prices are significantly higher than the rest of the world and are currently elevated only due to the tariff. If the tariff erodes, so do our prices in the near-term.
“We already expected prices to pull back this summer because of lower-than-expected demand from US manufacturing and construction. While more details are needed, the new deal places a downside risk to our near-term price outlook.”
MEPS’s US hot rolled coil prices rose by almost 40% in quarter one. Domestic producers increased their steel prices amid an expectation of tightening supply. Importers, meanwhile, accelerated procurement in an effort to beat the incoming import tariffs.
In MEPS’s recent US-focussed Market in Minutes podcast episode, Hodges said that steel imports into the US had not declined since the reintroduction of 25% Section 232 tariffs. Importers are sourcing low-cost material from non-traditional sources, however, after the tariffs’ blanket implementation effectively “levelled the playing field” between steel-producing countries, she said.
The recent rise in steel prices has also stalled. Research conducted for MEPS’s International Steel Review showed that subdued demand, and tariff uncertainty, has contributed to the market slowdown.
Forming a US-UK steel trade union
Some steel market participants are disappointed that trade deals with the US’s North American trading partners, Canada and Mexico, were not prioritised by the Trump administration. US buyers sourced 49,129 tonnes of the US’s 4.6m tonnes of steel imports from the UK in 2024, ranking it 18th among the country’s largest sources.
White House documents suggest that the US-UK deal will be underpinned by a new agreement on trade defence measures to tackle global steel overcapacity. They state that “the United States also recognizes the economic security measures taken by the UK to combat global steel excess capacity,” adding that “this deal creates a new trading union for steel and aluminum.”
The UK’s Trade Remedies Authority is currently investigating revisions to its steel import safeguard measures. In line with EU safeguard measures, the country will be implementing a new trade defence framework when its current model expires in June 2026.
Pact with UK benefits US machinery makers: Trump
The administration of US President Donald Trump has forged a trade agreement with the UK that has the potential to increase British importation of more US machinery and other steel-intensive manufactured goods, Kallanish reports.
Trump and UK prime minister Keir Starmer on Thursday announced cooperation on a broad framework to lower some tariffs and ease other trade barriers. Trump said the details will be hammered out in the coming weeks.
In a statement, the US Commerce Department says the agreement will bring “unprecedented access to the UK markets while bolstering US national security.”
Commerce secretary Howard Lutnick said the agreement with the UK is mutually beneficial and sets the stage for more pacts with other US trading partners.
“This deal marks a new era in our relationship with the United Kingdom, our great ally.” Lutnick said. “And more importantly this deal opens up an enormous multibillion dollar export opportunity for hard-working Americans. While groundbreaking, this deal is the first of many.”
Trump on Thursday said he expects progress soon on a trade deal with the EU. The president is sending treasury secretary Scott Bessent to Switzerland for meetings with Chinese officials in an attempt to jump-start negotiations.
UK leaders laud the apparent agreement to remove the US tariff on imports of UK-produced steel. The US imported 264,863 tons of British steel in 2024, up from 217,734t in 2023, according to Commerce Department data.
Lutnick said the UK has pledged to reduce non-tariff barriers on US machinery exports and to streamline some customs processes. Trump’s global 10% tariff that took effect a month ago will remain broadly in place for UK. However, the tariff rate on US imports of British-made autos will be lowered to that 10% rate from 25%.
Noting that critical details may not be known for a period of weeks or longer, one US steel market participant is reacting with conditional optimism about Thursday’s revelations.
“Unless there are conditions that make this a lopsided deal, the results should be positive,” comments a US steel coil distributor.
Dom Yanchunas USA , Kristen DiLandro USA
European green steel market remains muted
Flat steel
Buying interest for decarbonized steel remained muted across Europe.
“The interest [for green steel] from the distribution chain is not really there. End users should push customers to put green steel on their agenda,” a steelmaker source in Europe told Fastmarkets.
Fastmarkets’ methodology defines European green steel as “steel produced with Scope 1, 2 & 3 emissions at a maximum of 0.8 tonne of CO2 per tonne of steel.”
During the assessment week, leading European suppliers maintained the premiums for such steel at €200-300 ($227-340) per tonne.
Buyer sources estimated achievable premiums for green steel with such levels of emissions to be at €120-180 per tonne, claiming that, for bigger tonnages, mills were keen to provide discounts to spur buying interest.
As a result, Fastmarkets’ weekly assessment of the green steel, domestic, flat-rolled, differential to HRC index, exw Northern Europe was flat at €150-200 per tonne on May 8.
Despite limited activity in the spot market, industry sources were still largely optimistic regarding green steel uptake in the years ahead, despite the challenges.
“Today, I prefer buying green steel for tomorrow,” a buyer source told Fastmarkets.
Notably, industry sources expected a greater uptake of green steel across supply chains once environmental regulations, such as the Carbon Border Adjustment Mechanism (CBAM), were implemented. This was why more buyers were seeking to secure long-term supplies of steel with reduced carbon emissions in long-term contracts.
“Currently, only four flat steel suppliers in Europe can produce green steel with emissions below 1 tonne of CO2 per tonne of steel,” a mill source said. “And new projects are expected to start production only in 2026-28. So, potentially, there will be a bottleneck in green steel supply.”
Long steel
Buying interest for the green long steel was even slower compared with the flat steel market.
“Buyers are not willing to pay a single euro more in this market, no matter green or gray,” a mill source said.
Premium offers were reported within the range of €20-50 per tonne, unchanged week on week, but only low-end figures are accepted, sources said.
In the German market, transactions for green rebar were reported at €20-40 per tonne ex-works, but sources said that volumes were small.
Thus, the price assessment for green steel, differential to steel reinforcing bar (rebar), domestic, delivered Northern Europe was €20-40 per tonne on Wednesday May 7, widening upward from €20-30 per tonne seven days earlier.
European steel plate market largely stable despite Northern Europe mills targeting higher prices
Italy
The domestic commodity-grade steel heavy plate market in Italy remained flat during the assessment week, with no movement in prices observed for three consecutive weeks.
Fastmarkets’ weekly price assessment for steel domestic plate, 8-40mm, exw Southern Europe on Wednesday was €630-650 ($712.08-734.68) per tonne, unchanged from €630-650 per tonne seven days ago.
Market participants were bearish amid weak demand.
“In Southern Europe quart and rerollers are still facing a very difficult time as there is simply not enough demand, and stockholders and end-users are only purchasing missing dimensions or grades,” one source told Fastmarkets.
The source added that new import orders into the region have been minimal due to sufficient stocks at low prices and short delivery times for in-stock material.
Northern Europe
Northern Europe domestic plate prices widened downward during the pricing week, with sources noting an uptick in inquiries but limited orders.
Fastmarkets’ weekly price assessment for steel domestic plate, 8-40mm, exw Northern Europe was €670-700 per tonne on Wednesday, widening downward €10 from €680-700 per tonne a week earlier.
Fastmarkets heard that plate mills have been trying to lift prices, but such moves were mostly unsuccessful, with customers only purchasing what they “urgently need”.
Sources said that rerollers had been targeting higher market levels, trying to follow the upward trend in Europe’s flat hot-rolled coil market in recent months, but plate prices remained largely flat.
US tariffs continued to be of concern, with the first source saying such measures could impact import trade flows from third countries, as well as potentially limiting steel export levels.
US, UK reach trade deal, removing Section 232 tariffs on British metal
Automotive tariffs for UK vehicle imports have been cut to 10% for the first 100,000 vehicles imported into the US — the current standard reciprocal tariff rate — with any subsequent imports still subject to a 25% duty.
It is understood that the 10% reciprocal tariff levied on material imports outside of Section 232 will still apply, meaning that scrap imports into the US from the UK still incur that duty.
The material implications of the agreement from a metals perspective were described as minimal by market participants across the aluminium, steel and scrap markets, given that the UK is not a significant exporter of those units to the US.
A failure to announce a trade deal with China or to secure trade partners among other Asian nations has made it critical for the US to make headway in another direction, sources told Fastmarkets.
Nonetheless, the deal with the UK has been instrumental in establishing the parameters of what elements of the original tariff package are open for renegotiation, namely automotive tariffs and Section 232, those same sources reiterated.
Tariffs on exports of UK steel and aluminium to the US were imposed on March 12. The US has since recognized the economic security measures taken by the UK to combat global steel excess capacity and will negotiate an alternative arrangement for steel and aluminium, the White House said, forging a deal that “will create a new trading union for the metals.”
The UK exported around 180,000 tonnes of semi-finished and finished steel to the US, worth £370 million ($492 million), in 2024, according to UK Steel. This accounted for 7% of the UK’s total steel exports by volume and 9% by value.
The outcome was “hugely significant for the British steel sector,” UK Steel said in a statement. The British trade association said the US is the UK’s second most important export market for steel, after the EU.
US exports to the UK consist mostly of specialist steel for defense, oil and gas, construction equipment and packaging applications.
The trade association said the removal of tariffs offers some respite amid challenging market conditions, citing global overcapacity and oversupply, high energy costs and weak demand.
The US’s largest sources of aluminium are Canada, the United Arab Emirates and China. In 2024, the UK was the 26th supplier of unwrought aluminium, not alloyed, and aluminium alloys, unwrought — representing 0.004% of US imports — according to data from the US International Trade Commission’s DataWeb.
“The Aluminum Association is encouraged by today’s announcement. While the aluminium trade between the US and the UK is negligible (~0.1% of all aluminium imports into the US come from the UK), the White House promised an ‘alternative arrangement to the Section 232 tariffs on steel and aluminium’ creating ‘a new trading union for steel and aluminium,’” Aluminum Association chair and chief executive officer Charles Johnson said in a statement to Fastmarkets.
“This may provide a framework for tailored trading arrangements that allow the US to combat unfairly traded Chinese aluminium in global markets while providing the flexibility needed to secure abundant, affordable metal to support more than $10 billion in industry investment made in recent years. We look forward to working closely with the White House on these plans as negotiations continue and appreciate President Trump’s continued support for a strong US aluminium industry,” Johnson continued.
A European trader told Fastmarkets they do not see much impact on the European aluminium market as the UK is not a large exporter of aluminium.
“It could send a positive message to the world to some extent that certain countries could get a good outcome from their negotiations with the US,” a second trader source said.
The second trader said Trump is “very unpredictable and he could change his mind any minute.”
“The US-UK deal demonstrates that the Trump administration is willing to work out ‘alternative arrangements’ with countries that are willing to address transshipment of China-manufactured steel,” Dan Ujczo, senior counsel, international trade and transportation at Thompson Hine, told Fastmarkets.
“This will be a reset of any quotas and the imposition of monitoring and reporting systems. It bodes well that the steel and aluminium tariffs are tactical to achieve specific results against China as opposed to permanent tariffs for most countries. Nevertheless, managed trade is the order of the day in the steel and aluminium sectors,” Ujczo continued.
Vogel Group managing principal Samir Kapadia told Fastmarkets the US-UK deal was a surprise.
“Steel and aluminium have been a no-fly zone for the White House as it related to reducing and/or eliminating tariffs. I don’t think the industry will be happy about this at all, despite the low volumes,” Kapadia said.
“It sets an odd precedent and counters much of the work done at the outset of the administration on eliminating tariff rate quotas and other exemptions. But it might show that the White House believes that the UK isn’t the problem in the global steel market. I highly doubt Canada, Mexico, Brazil and China will get similar relief,” Kapadia continued.
Unite, one of the largest trade unions in the UK and Ireland, welcomed the agreement in a statement. The union also advocated for more political action in the UK, such as reducing industrial energy costs and designating steel as critical national infrastructure area to promote British industry. Alcoa chief executive officer William Oplinger, who asked Trump for a tariff exemption in March, said high energy costs have kept the US aluminium industry from being globally competitive.
https://dashboard.fastmarkets.com/a/5229554
Rather than being buoyed by the new trade agreement, the US recycling industry remains preoccupied by the potential for the European Commission to retaliate against the Trump administration’s reciprocal tariffs.
“ReMA has significant concerns with the proposed retaliation that the European Commission has released that would not only target US exports of certain recycled materials but also seeks to impose export restrictions on EU recycled steel and aluminium products,” the Recycled Material Association’s vice president of International Trade and Global Affairs Adam Shaffer told Fastmarkets.
“The US is a net exporter of these two recyclable commodities to the EU, but the US also imported over $150 million in recycled steel and aluminium last year, so the combination of both import tariffs and export restrictions would be particularly disruptive for recyclers and manufacturers,” Shaffer continued.
“We look forward to engaging with the Trump administration to ensure that trade in recycled materials is not significantly impacted by the potential EU retaliation,” Shaffer said.
Kloeckner confirms track towards processing services
Kloeckner & Co is expecting growth in revenue in the second quarter, due to increasing steel prices, especially in the USA.
In Q1, the company sold 1.17 million tonnes of steel, up 2.7% on the corresponding quarter of 2024. The increase was driven by Kloeckner Metals America, while tonnages in Europe still declined slightly year-on-year, chief executive Guido Kerkhoff said on a conference call on Wednesday monitored by Kallanish.
Despite the overall increase in shipments, lower steel prices saw revenue fall by 4.1% to €1.67 billion ($1.9 billion), while Ebitda stayed flat at €42 million.
Kerkhoff noted that the North American unit replenished its inventories towards the end of last year at low prices, meaning it will be able to benefit from the considerable recent price increases in the region.
He underlined the company’s strategic course of becoming a processor, rather than a mere stockholder. In comparison with the total figures, revenue in the processing operations, including service centres, went up 8%. “There is demand for partners that can take over part of the value-added chain,” he said, adding that the company is seeking more such partnerships with customers as well as suppliers.
Kerkhoff highlighted that the company’s North American business, which now accounts for 60% of group revenue, is particularly strong on value-added services.
Christian Koehl Germany
EU alters ‘overly ideological’ decarbonisation course
The EU has recognised its initial decarbonisation policy was “overly ideological” and must change course to ensure its industrial base endures. However, it should not succumb to excessive protectionism. This was the conclusion of a dialogue between Antonio Marcegaglia and Franco Bernabè at Made in Steel in Milan on Wednesday.
Bernabè, who is president of the University of Trento and former chairman of Acciaierie d’Italia, said making predictions is becoming difficult in an increasingly unstable world. Donald Trump’s tariffs mean uncertain and often harmful consequences for the global economy.
“Yet, this instability could also serve as an opportunity for Europe, which possesses untapped resources and expertise, including an industrial heritage that can be revitalised with a renewed strategic vision,” Bernabè noted at the event organised by Siderweb.
“Europe has recognised the need to change course. Its initial approach to ecological transition was overly ideological and failed to grasp the complexity of the transformation required. Nevertheless, a major obstacle remains: bureaucracy. An ever-expanding web of laws and regulations continues to stifle entrepreneurial activity,” he added during the event monitored by Kallanish.
Marcegaglia meanwhile said European steel sector challenges stem from “a bureaucratic, overly ideological approach to decarbonisation – an essential but complex goal. Without a strategic course correction, Europe faces the very real risk of a significant decline in its production capacity.”
He called for “greater regulatory clarity and more efficient governance capable of delivering effective industrial policy. Europe must embrace a strategic vision without succumbing to the temptation of excessive protectionism – otherwise, we will seriously undermine the competitiveness of our industry.”
Adam Smith Poland
Assofermet urges EU to support steel consumption and entire value chain
Assofermet, the association representing Italian distributors of scrap, raw materials, and steel products has welcomed the European Union’s Action Plan on Steel and Metals, viewing it as an important signal in support of strategic industries. However, in a statement released this week, the association criticized the document for its lack of concreteness and detail, deeming it insufficient to resolve the deep crisis affecting the European steel industry, the primary cause of which is identified as the drastic decline in domestic steel demand.
According to Assofermet, the current plan focuses excessively on production, while entirely neglecting the downstream supply chain – comprising trade, distribution, processing, and end-use of steel – which constitutes the most extensive and strategic part of the industry. The entire European manufacturing sector, which heavily relies on steel, is now severely weakened by offshoring to third countries and by foreign competition, both in terms of price and quality, Assofermet said.
The transition of the sector toward decarbonization is recognized as necessary, but it must be accompanied by effective and immediate measures, the association argues. Assofermet highlights that companies in the supply chain, often SMEs (small and medium-sized enterprises), played a crucial role in ensuring steel supply during the post-Covid crisis, compensating for domestic shortages through imports from non-EU countries.
Assofermet therefore proposes a series of economic and fiscal measures to stimulate domestic steel demand and strengthen the entire industrial value chain, with the goal of preventing further declines in production and employment. These include:
- Tax credits for replacing obsolete machinery and equipment with new ones that have a high steel content.
- Non-repayable grants and low-interest loans for investments in plants and equipment by SMEs.
- Capital, operating, plant and interest subsidies to support the activities of businesses involved in steel usage.
Additionally, Assofermet calls for:
- The introduction of targeted tax incentives and a reduced VAT rate for products with a high content of steel produced in the EU.
- The inclusion of clauses in public procurement tenders that favor the use of EU-origin steel.
- The extension of the Carbon Border Adjustment Mechanism (CBAM) to certain finished products with high steel content.
- Protective trade measures against imports of steel-intensive goods from third countries.
Assofermet also considers it essential to implement a three-year emergency economic plan to revive European manufacturing and structurally stimulate steel consumption, in line with the EU budget resource use guidelines proposed by Mario Draghi.
The association identifies several priority sectors to be relaunched in order to boost demand: automotive, transport, construction, infrastructure, energy, mechanical engineering, home appliances, chemicals, and the food industry.
Finally, Assofermet warns that the current weakness in domestic demand, combined with shrinking distribution margins and excess production capacity, risks triggering a serious slowdown in EU manufacturing, transforming companies into mere importers and sparking a new wave of industrial offshoring.
Hence, the association makes an urgent appeal for coordinated industrial policies capable of reactivating internal demand, strengthening competitiveness, and opening a new phase of economic expansion for the entire European steel supply chain.
