France’s metal industry output up 1.4 percent in Feb from Jan
France’s manufacturing output in February this year rose by 1.4 percent month on month, after declining by 0.5 percent in January this year, according to the statistics released by France’s National Institute of Statistics and Economic Studies (INSEE).
In the December-February quarter, France’s manufacturing output declined by 1.9 percent year on year and by 0.7 percent quarter on quarter.
In the given month, France’s production in manufacture of basic metals and fabricated metal products, except machinery and equipment, was up by 1.4 compared to January, after decreasing by 2.2 percent in the previous month.
On the other hand, in February production of France’s motor vehicles, trailers and semi-trailers industry grew by 1.8 percent on month-on-month basis after increasing by 7.2 percent on month-on-month basis in the previous month, while the output of the domestic construction industry grew by 1.6 percent month on month in the given month after going down by 3.7 percent in January compared to December. In the December-February quarter, output of the domestic construction industry was up by 0.9 percent compared to the previous quarter.
Europe ready for dialogue on tariffs with US, but also ready to use countermeasures
On Monday, EU leaders were scheduled to meet for the Foreign Affairs Council on trade to discuss US tariffs, its effects on the EU economy and a possible response.
A range of newly introduced tariffs in the US were targeting a substantial portion of the EU’s exports to the country worth €380 billion ($415 billion) per year.
“Some 70% of our total exports… are facing tariffs of 20% or 25%, or even higher when combined with existing Most Favoured Nation tariffs, such as the 27.5% duty on passenger cars,” EU trade commissioner Maros Sefcovic said during a Foreign Affairs Council (Trade) press conference on April 7.
Even though the EU remains open to negotiations and considers the issue a priority, the bloc is also ready to respond with countermeasures.
“While the EU remains open to – and would strongly prefer – negotiation, we will not wait endlessly,” Sefcovic said.
Concerning steel and aluminium in particular, the European Commission “received valuable feedback from… Member States and 660 stakeholders,” and is working on a list of counter-measures. This list of measures, and the levels of proposed tariffs, were to be sent to member states on April 7, while a vote on them was set for April 9, with the final list to be adopted on April 15.
Any duties imposed on products will start on that day for the first set of measures, and on May 15 for the remainder, according to a European Commission press release.
No details on exact counter measures have yet revealed.
Regional sources suggested that rebalancing measures would include a mirror 25% tariff on steel and aluminium imports from the US, as was suggested in March.
Trade background
On April 2, the US White House announced the country’s so-called “liberation” tariffs affecting every US trade partner, including the EU.
As a result, all EU-origin imports to the US were now faced with 20% blanket tariffs, affecting an already-struggling European manufacturing sector.
While no additional tariffs on steel were added at that time, the US had on March 12 imposed tariffs as high as 25% on imports of steel, aluminium, and certain products containing steel and aluminium, from the EU and other trading partners.
Exports to the US accounted for 16%, 2.5 million tonnes of the total of 15.8 million tonnes, of carbon steel exports from the EU in 2024.
Steel market stakeholders underlined the urgent need for the EU to propose new trade defense measures for steel, which would go beyond the existing safeguards, in order to address the potential deflection of exports from other major steel-producing countries into the EU market.
Europe’s steel sector remained the backbone of many regional economies, with approximately 500 production sites across 22 EU member states, the Commission said. According to EU data, the European steel sector contributes around €80 billion to the EU’s gross domestic product (GDP) and supports more than 2.5 million jobs.
But declines in production volumes over recent years were also clear to see in the data. Steel production in the EU-27 was 129.50 million tonnes in 2024, according to the World Steel Association. Although this total was up by 2.6% from 2023, it was still down by 15.1% from the 152.50 million tonnes made in 2021.
“Capacity utilization rates are dramatically low across the EU,” a mill source in Europe said. “On average, it’s not higher than 70%, while imports’ share in consumption has been steadily moving up in recent years.”
EU imposes provisional duties on HRC imports from Japan, Egypt, Vietnam
The provisional duties are set to enter into force on April 7 and be valid for six months, according to the notice on the EU official journal.
The duty rates were slightly lower compared to those in the pre-disclosure document, which was made public on March 14.
For Egypt, the provisional duty rate on material from Ezz Steel and all other companies was set at 12.8%. In the pre-disclosure document, the rate was higher, at 15.6%
The highest duties were proposed for Japanese suppliers: 31.8% for Nippon Steel Corporation and all other companies (33% in pre-disclosure document), 31.1% for JFE Steel Corporation and Daido Steel Co., Ltd (32% in pre-disclosure document).Tokyo Steel received a comparatively low duty of 6.9%, the same as suggested in pre-disclosure document.
For Vietnam, provisional duties were confirmed at 12.1% for Formosa Ha Tinh Steel Corporation and all other companies, with the exception of Hoa Phat Dung Quat Steel Joint Company, which was not subjected to any rates.
No provisional duties were introduced on Indian companies, as was initially suggested in the March pre-disclosure document.
EU HRC prices firm on limited imports
Domestic HRC prices in Europe have been ticking up recently, mainly supported by limited availability of imports amid safeguards amendments and anti-dumping cases.
Sources, however, were worried that the current uptrend was only short-lived due to lack of real demand.
“European mills are well-booked for the second quarter and import availability is limited due to safeguards and anti-dumping measures. It’s a sellers’ market now, so prices are likely to keep ticking up,” a distributor in Northern Europe said.
Sources were worried about the long-term outlook, given the still-weak demand from key steel-using sectors and possible deterioration in demand from the already-struggling automotive sector, which is being affected by US tariffs.
Fastmarkets calculated its daily steel hot-rolled coil index domestic, exw Northern Europe at €652.00 per tonne on Monday April 7, up by €0.17 per tonne from €651.83 per tonne on Friday April 4.
The Northern European index was up by €5.75 per tonne week on week and by €20.62 per tonne month on month.
UK steel sector relatively optimistic despite challenging landscape
Market participants at the event in Leeds, North Yorkshire, on Thursday April 3, discussed the extraordinarily tough times facing the UK’s steel industry and its associated supply chains, given the global slowdown and US president Donald Trump’s trade war with the rest of the world. Yet they still found some signs of a slight upturn in the latter half of 2025 and beyond.
Here, Fastmarkets outlines the five key insights from the NEASS/NASS steel meeting:
1- Closure of Scunthorpe expected, but still a concern
Recent news of the planned closure of British Steel’s Scunthorpe plant, the last remaining primary steelmaking plant in the UK, was a major topic of discussion at the one-day event.
One delegate said that while the closure of Scunthorpe’s blast furnaces was not a surprise, the switch to electric-arc furnace steelmaking was essential for “British Steel and the country” as a whole.
“With British Steel, the furnace was always going to shut one day – it’s been a given for a decade, but the politicians kept kicking the can down the road,” the delegate told Fastmarkets.
But one of the speakers at the event, Shay Eddy – commercial and technical director at steel fabrication specialist SC4 – warned that the loss of the UK’s last primary steelmaking facility should not be under-estimated.
“The thought of a G7 country not having a primary steel producer [is a matter] of national security,” Eddy said. “We have to be self-sufficient as far as we can.”
According to recent reports, British Steel’s Scunthorpe site could close within days – much sooner than initially expected – with its Chinese owner, Jingye, reportedly canceling key shipments of coal and iron ore to the plant. When pressed on the matter by Fastmarkets, the company simply said “no comment.”
2- Port capacity concerns amid UK steel producer uncertainty
Delegates raised concerns about future port capacity, warning that a potential rise in semi-finished and finished steel imports, which will be crucial to meeting domestic demand if Scunthorpe closes, could put a significant strain on the UK’s port infrastructure.
“It depends on what form it takes. Semi-finished products [for rerolling] are easy-to-handle cargoes, [but] we would struggle with [finished] coil and sections,” a port sector market participant said.
“There isn’t [port] capacity… to handle the volumes [that would be required] if we lose UK [primary steel production].”
A second port industry delegate said there had been a marked increase in imported steel – largely coil supplies for Tata Steel’s Port Talbot hot strip mill in South Wales – while steel export volumes have declined.
Tata Steel has continued operating its rolling mill since closing its blast furnaces last year and the company said it plans to build an EAF at the Port Talbot site as part of a £1.25 billion ($1.62 billion) green steel investment in partnership with the British government.
While major hub ports are currently experiencing strong demand, smaller ports are reportedly handling lower volumes, according to port industry market participants at the event.
Some delegates speculated that other commodities might need to be “booted out” to make room for additional steel cargoes if Scunthorpe’s blast furnaces and basic oxygen furnaces are completely shut down – raising concerns about potential future bottlenecks across the UK port network.
3- Trump tariffs
Delegates were critical of Trump’s tariffs after the US imposed 25% tariffs on all steel and aluminium products entering the US on March 12, and subsequently extended that to all car imports on April 3.
A second delegate said the relationships Trump was “destroying” would “take years” to rebuild.
The latest 25% tariffs cancel out previous exemptions and quota arrangements with the UK and EU, as well as product-specific exemptions for steel not made in the US.
4- Solar remedy for sky-high energy costs?
Attendees also talked about the critical issue of “sky-high” energy costs for UK market participants, with energy prices in the UK significantly higher than in many other developed economies such as the European Union.
And the cost of electricity could become even more important to UK steelmakers whenproducers move to EAF production, which uses more electricity than the traditional blast furnace/basic oxygen furnace method.
However, the director of energy supplier Mypower Solar, Neil Stott, told delegates that solar power was a possible tool to curb production costs and reduce carbon footprints across the supply chain.
Stott said that a significant portion of annual electricity needs for a building – up to to 30-50% – could be met by installing solar panel systems on rooftops.
5- Rising demand for domestic steel scrap
The future uptick in the use of EAF-based steel production meant there would be an equal or greater increase in domestic demand for steel scrap, market participants said at the joint meeting, with feedstock for EAFs comprising of either scrap steel, direct reduced iron (DRI) or pig iron.
Around 80-90% of steel scrap is exported as Fastmarkets understands, but Tata’s plans for a 3-million-tonne-per-year EAF plant in Port Talbot set to be complete in late 2027 could lead to greater domestic demand for feedstock materials such as scrap.
One scrap metal industry participant said that conversations were taking place between government and industry players regarding ringfencing UK scrap for domestic needs in the future.
6- Small improvements expected in Q3, Q4
Despite the many challenges facing the UK steel industry, market participants expressed some optimism for the coming months, stressing that there will be “slight improvements” are expected in the second half of the year.
A third delegate spoke of positive sentiment and said market conditions would be fairly stable, while a coil market participant looked back at a challenging 2024 be was looking forward to “green shoots of recovery” later in 2025.
EU steel industry urges new trade defense measures, scrap retention
Representatives from the steel and metals industry raised strong concerns about the broader ramifications of US tariffs, including impacts on derivative products and the serious risk of trade diversion, during a high-level dialogue hosted by European Commission President Ursula von der Leyen on April 7. The meeting aimed to discuss the implications of US tariffs on steel, aluminum, and related derivative products, the EC said.
The meeting focused on gathering industry views and proposals for the most effective EU response to the US measures.
While the representatives welcomed the EC’s Steel and Metals Action Plan and the Clean Industrial Deal, they also suggested implementing a few points.
EUROMETAL, the association of traders and EU service centers, suggested using public procurement to prioritize EU-based steel content while supporting local manufacturing and innovation, particularly in sectors essential for the green transition and EU defense capabilities, EUROMETAL said in a letter sent to its members seen by Platts, part of S&P Global Commodity Insights.
The industry called for new trade defense measures for steel, beyond existing safeguards set to expire in June 2026, to counter potential export deflection from other major steel-producing countries. Participants also expressed concern about diminishing scrap volumes used for recycling in the EU and requested effective measures to retain sufficient volumes within the EU. They also underlined the importance of local content requirements, notably pointing at the huge potential of public procurement in this regard.
Additionally, participants supported the accelerated review of the Carbon Border Adjustment Measures to address remaining loopholes.
“President von der Leyen sent a clear signal: keeping aluminum production and recycling in Europe is critical to our continent’s future,” European Aluminium General Director Paul Voss told Platts on April 7 while commenting at the meeting. “We welcome this recognition at the highest political level and look forward to quick and effective action to stop scrap leakage, strengthen trade defense, and address the impact of US tariffs,” he added.
EUROMETAL also emphasized the strain on US downstream industries and logistics operators, which are already grappling with inflationary pressures on imported products and declining transport margins. With the US steel market being 25%-30% import-dependent, these protectionist measures could inadvertently undermine US competitiveness, contradicting their intended purpose. This context was vital for transatlantic negotiations moving forward.
Although Europe sends more goods to the US than it receives, the situation is different when it comes to services. This indicates that the service sector, especially in technology, could be the primary channel for Brussels to respond effectively.
Blastr inks Vogten Staal deal for low-carbon steel supply
Blastr Green Steel has signed a memorandum of understanding with Vogten Staal, a European steel service center, for the annual supply of its low-carbon steel, the Norwegian company stated on April 7.
The agreement with Vogten will enable Blastr’s low-carbon steel to reach more sustainable metal users and grant access to Vogten’s steel refinement services, including hot-rolled material pickling. The two companies did not disclose the volumes of the agreement.
Vogten’s production lines are located in Maastricht, the Netherlands. The company recently invested in a second production facility. When all new lines are installed, the annual production capacity of both facilities will be over 1 million mt, divided over three cut-to-length lines, two push-pull pickling lines, a slitting line and four shears.
Blastr is planning a direct-reduced iron, or DRI-EAF steel plant with an integrated green hydrogen production facility to produce 2.5 million mt of low-carbon steel in Inkoo, Finland. It is currently looking for the DRI location and exploring building it in the UK, a spokesperson told Platts, part of S&P Global Commodity Insights, on Feb. 3.
“The collaboration between Blastr and Vogten Staal reflects strong growth in demand for high-quality decarbonized steel in European markets,” Mark Bula, CEO of Blastr said.
“We are proud to partner with one of Europe’s leading steel service centers, which shares our commitment to mitigating climate change by making green steel available to a growing pool of customers,” Bula added.
This is the third offtake low-carbon supply agreement announced by Blastr in less than four months.
Platts assessed Northwest European hot-rolled coil carbon-accounted stable at Eur710/mt ex-works Ruhr on April 4.
EUROMETAL voices key industry concerns in high-level EU Consultation on US Tariffs
At the invitation of European Commission President Ursula von der Leyen, EUROMETAL took part today in a high-level virtual consultation addressing the implications of the recently announced U.S. tariffs on steel, aluminium, and related derivative products—including those originating from the European Union.
The meeting convened key stakeholders from across the European steel and metals value chain, including EUROMETAL, EUROFER and ESPA. Discussions focused on assessing the expected fallout from the new U.S. protectionist measures and shaping a strategic EU response to ensure the resilience and competitiveness of Europe’s steel industry.
EUROMETAL’s Contribution
Representing Europe’s steel distribution, processing, and trading sectors, EUROMETAL made two key interventions during the consultation:
1. U.S. Downstream and Logistics Impact
EUROMETAL highlighted emerging pressure on U.S. downstream industries and logistics operators, pointing to inflationary trends in imported steel prices and declining transport margins. With the U.S. steel market depending on imports for 25–30% of its needs, the newly announced tariffs risk undermining U.S. industrial competitiveness—contrary to their intended goals. EUROMETAL stressed that this broader context must be taken into account during transatlantic trade negotiations.
2. Strengthening the Steel and Metals Action Plan
While welcoming the European Commission’s Steel and Metals Action Plan (effective 1 April 2025), EUROMETAL called for a broader, more robust strategy to support the EU steel value chain, including:
- Strategic use of public procurement to prioritise EU-based steel content;
- Expansion of safeguard and tariff measures to include derivative products under TARIC codes 73, 85, and potentially 84 and 94;
- Greater support for local manufacturing and innovation, especially in sectors critical to the green transition and EU defence capabilities.
Commission’s Takeaways and Roadmap
President von der Leyen concluded the consultation with a clear set of follow-up actions aimed at reinforcing Europe’s steel sector in response to the evolving global trade environment:
- Launch of a new Import Surveillance Task Force,
- Early preparation of post-safeguard measures,
- Inclusion of steel derivatives in EU trade defence instruments,
- Reinforced local content requirements,
- Expanded application of the Carbon Border Adjustment Mechanism (CBAM),
- Stronger integration of defence production into the EU industrial strategy.
The official readout from the European Commission further emphasised the sector’s concerns over the impact of U.S. tariffs, the risk of trade diversion, and the need to maintain sufficient volumes of scrap for domestic recycling. Industry representatives strongly supported the fast implementation of the Steel and Metals Action Plan and the Clean Industrial Deal, while calling for new trade defence instruments to counter potential deflection of exports from other major steel-producing nations.
EUROMETAL will remain actively engaged with EU decision-makers in the weeks ahead as the Steel and Metals Action Plan is rolled out and additional measures are developed. Our continued focus is to ensure that Europe’s steel value chain remains resilient, innovative, and globally competitive in an increasingly uncertain trade environment.
NovaMar Logistic: a new alliance to optimize steel logistics
Marcegaglia and Nova Marine Carriers launch a new joint venture to streamline maritime transport, cut environmental impact, and secure supply chains amid growing global uncertainty.
A new partnership is reshaping the European shipping and logistics scene.
Marcegaglia, one of the world’s leading steel producers, has joined forces with Italo-Swiss shipping group Nova Marine Carriers to create NovaMar Logistic, a Maltese-based joint venture. Developed with support from OD Shipping—Marcegaglia’s long-time brokerage partner—the project was officially unveiled with the signing of Antonio and Emma Marcegaglia, Vincenzo Romeo (CEO of Nova Marine Carriers), and Mario Bernacca (CEO of OD Shipping).
NovaMar Logistic will manage the Sider Luck, a 26,300 dwt vessel tasked with transporting raw materials from supply ports to Marcegaglia’s key manufacturing plants in Ravenna and Fos-sur-Mer. The move is designed to optimize shipping operations, enhance sustainability, and reduce the environmental impact of steel logistics.
“With this new venture, we are strengthening our long-standing relationship with Nova Marine in a sector – maritime transport – that is critical to the competitiveness of the steel industry,” said Antonio Marcegaglia, CEO of Marcegaglia Steel.
“In today’s world of conflicts, geopolitical instability, and rising protectionism, securing resilient, structured supply chains is essential to maintaining competitiveness.”
Vincenzo Romeo, CEO of Nova Marine Carriers, described NovaMar Logistic as “the natural evolution of a partnership that has lasted over a decade,” emphasizing the value of combining two companies that have both achieved significant growth while maintaining strong family leadership.
Mario Bernacca of OD Shipping highlighted the project’s sustainability dimension. “This is not a first-time initiative. We successfully tested this model in the past. Using the same vessel, we moved more than 700,000 tons of steel, significantly cutting emissions compared to smaller ships and reducing pressure on road transport. It’s a textbook example of leveraging ‘motorways of the sea’ for greener logistics.”
By integrating industrial production and shipping more closely, NovaMar Logistic aims to offer a more efficient, sustainable approach to maritime transport, addressing the growing need for resilient and environmentally responsible supply chains.
China’s non-VAT exports face strict control
China’s non-VAT exports are facing sporadic customs investigations and debt collection, quietly reshaping the export market. With the announcement of an electronic export goods declaration system and multi-department joint management, the market expects that this form of export will almost disappear soon, Kallanish notes.
In the past few years, Chinese steel exporters gain price advantages by evading VAT-payment, thereby increasing their competitiveness in overseas markets. The practice intensified last year, achieving a sharp increase in annual export volume. Last year’s steel exports thus hit the second highest in history.
The essence of the operation is that steel mills use shell agents to export steel, but agents do not pay the 13% VAT that should be paid to the domestic tax department during the receipt and export stage. In the past year, this usually has meant that exports through this route are about $15-20/tonne lower than normal exports.
On 28 March, the State Administration of Taxation, the Ministry of Finance, the Ministry of Commerce, the General Administration of Customs and the State Administration for Market Regulation jointly issued a document aiming at strengthening the standardised management of export goods that should pay domestic taxes, including VAT.
The document targets non-VAT exports. The lead of the State Administration of Taxation represents that this is actually a tax evasion problem. The joint participation of other departments not only ensures that supervision is in place, but also means that disciplinary measures will be in place.
Later, the Taxation Bureau of Shenzhen, a city where such illegal export agents are concentrated, issued a notice on Tuesday of a case investigating and punishing non-VAT exports. The goods illegally exported by 10 shell companies included ferrochrome. The total tax collection reached CNY 270 million ($37m).
Some market participants said that some illegal steel exports were investigated by the government at the ports of Jingtang and Tianjin. However, many market participants in Beijing and East China said that the follow-up measures are still unknown. These signals caused Chinese exporters to quickly cancel their non-VAT quotations this week, helping to improve the overall level of export prices.
However, it is not feasible to conclude that such investigations are on the rise at this time. As early as April last year, the authorities often stated that they had successfully investigated and fined illegal non-VAT exports.
For the near future, the disappearance of non-VAT exports is likely to be an issue in May. On 27 March, the General Administration of Customs issued a new version of the import and export goods declaration management regulations. The replacement of paper declarations with electronic data declarations and stricter confirmation processes will effectively plug this loophole.
Affected by this, a large number of signed orders are struggling to advance the shipping date of goods to April, or directly cancel the contract to avoid future risks.
“This is good for prices to grow,” an exporter says. “The disappearance of unreasonably low prices will also make market competition more reasonable.”
Steel mills will not be implicated if the government decides to investigate and punish past violations. Steel mills’ goods were legal before and at the time of arrival at the agents as long as they do not participate.
“Steel mills have insulated themselves from risk,” a Beijing-based market player commented on Thursday.
SSAB expands production at Italian service centre
SSAB Swedish Steel’s service centre in Ghedi, Italy, is set to expand its production of cut-to-length sheets in higher strength grades while also improving quality.
The steel producer is to upgrade its cut-to-length (CTL) line to start production of higher strength steels with the aim to respond to current and future market demand, Kallanish learns from the company.
The initiative will allow the service centre to provide cut-to-length sheets of enhanced strength grades from coils, including most hot-rolled strip Hardox abrasion-resistant steels and Strenx structural steels.
The current facility processes coils with yield strengths of 700MPa or lower. The works will elevate the capacity to 1350MPa with a thickness of 6.5mm, enabling the cutting of ultra-high strength SSAB coils to any desired length, resulting in enhanced surface quality and flatness.
“The upgraded capacity means SSAB will ship a greater range of steels to Italy as coils, which is faster and more efficient than shipping cut lengths in packaged bundles from Sweden,” a company note says.
It adds that the Ghedi facility, which has a 80,000t/year capacity, will also be better able to handle low-to-mid production volumes in higher strength grades for a variety of sheet lengths.
“The Ghedi cut-to-length (CTL) line can already handle coils as wide as 2050mm, assuring compatibility with SSAB’s future mini-mills, which will be able to produce coils up to 2-meters wide.”
According to FIMI Machinery, which will carry out the upgrade, Ghedi customers are going to notice immediate improvements in their cut steel sheets.
“With three new brushing machines connected to a filtration system, the scale (iron oxide) produced by the straightener and levellers will be extracted to protect workers, machinery, and the environment. There will be less imprints on the surface, which means improved surface quality. And due to better stress removal, the sheets will be flatter, which is key for SSAB Laser grades,” they said,
The upgrade for 2025 is planned to coincide with the centre’s standard maintenance window, which spans from July to September. The equipment is projected to be operational in autumn this year.
Natalia Capra France
