Category: Latest Updates

Germany-based automaker BMW Group has announced that, together with its partners, it has demonstrated through the Car2Car research project that significantly higher recovery rates for automotive materials can be achieved through advanced sorting and processing technologies, with particularly strong results for steel.

Under standard market processing conditions, the project achieved an overall Car2Car rate of six percent across five material groups. With additional processing and optimized sorting routes, the rate increased to 51 percent. The project defines the Car2Car rate as the share of materials from an end-of-life vehicle that can theoretically be recovered at sufficient quality for reuse in new industrial applications. For steel specifically, the recovery rate increased from one percent to 81 percent.

Additional sorting step reduces copper contamination

According to BMW, one of the main challenges in recycling end-of-life vehicle steel for high-quality automotive applications is contamination by copper originating from cables, connectors and other components.

The Car2Car project demonstrated that an additional sorting step can selectively reduce copper content in steel scrap, improving its quality sufficiently for use in new flat steel products for automotive applications.

Steel coils produced using the improved scrap were subsequently tested and introduced into industrial production. At BMW Group’s Leipzig plant, more than 100,000 series-production components were manufactured from the material for use in vehicles.

Further infrastructure investment still required

The project also showed that further progress will require additional investment in dismantling, sorting and recycling infrastructure. Advanced measures tested during the project included improved pre-sorting, modified shredding, classification, sensor-based sorting and more precise separation of aluminum alloys. BMW noted that high-quality closed-loop recycling is currently more advanced for metals than for plastics and glass. For these materials, further development is still required to meet the automotive industry’s quality requirements.

The findings will be used in BMW Group’s further development of circular vehicle concepts and its Design for Circularity approach. The company also stated that the results could provide input for future regulatory frameworks, including the European End-of-Life Vehicles Regulation, by identifying the technical and economic conditions required to achieve higher recovery rates and more closed material loops.

Spain-based welded steel pipe producer Tuflesa, part of the Bornay Group, has commissioned Germany-based plantmaker SMS Group to modernize the sizing section of its ERW-RD-240 pipe welding line at Las Torres de Cotillas near Murcia.

New sizing stands to improve accuracy and productivity

Under the project, SMS Group will replace four worn sizing stands and the associated changeover equipment, while retaining the existing main drive, base frames and automatic stand-change cars to limit investment costs, labor requirements and downtime. The new stands, which will be delivered fully assembled, wired and piped, are expected to restore dimensional accuracy, improve productivity and enable Tuflesa to manufacture new products while meeting tighter tolerance requirements.

Supplied by SMS Group in 1998, the ERW-RD-240 line produces structural tubes with maximum dimensions of 240 mm for round products and 200 x 200 mm for square products, including tolerance-critical tubular solutions for the solar energy sector.

Installation scheduled for summer 2027

The equipment replacement is scheduled to take place during Tuflesa’s planned summer shutdown in 2027, with SMS Group also supervising commissioning and supporting the subsequent production ramp-up.

This will be the second modernization carried out by SMS Group on the line following the upgrade of its forming and welding sections in 2024. The latest order included the commissioning of a new RD 40 high-frequency tube welding line in 2021.

Germany’s machinery and equipment industry recorded a slight decline in exports in the first half of 2026, as geopolitical tensions, US tariff policies and persistently weak demand in China continued to weigh on foreign trade, according to German mechanical engineering industry association VDMA.

German machinery and equipment exports decreased by 0.8 percent year on year in nominal terms to €99.3 billion in the January-June period. On a price-adjusted basis, exports declined by 2.5 percent. Meanwhile, machinery imports increased by 2.2 percent year on year to €47.9 billion.

Strong June performance limits H1 decline

Anke Uhlig, VDMA economic expert, stated that relatively stable export activity in the second quarter, combined with a 6.8 percent year on year increase in June, limited the decline recorded for the first half.

However, geopolitical tensions, US tariff policies and continued weakness in business with China remained significant pressures on the sector.

Exports to China fall 13.8 percent

Germany’s machinery exports to the US increased by 0.5 percent year on year in the first half, despite the negative impact of US tariff policy and the strong euro. By contrast, exports to China fell sharply by 13.8 percent, continuing the weakness seen in this market in recent years.

Exports to the European Union increased by 1.3 percent, with the bloc retaining its position as the German machinery industry’s largest sales region with a 45.9 percent share of total exports. Among major EU destinations, exports to France increased by 3.6 percent and those to the Netherlands rose by 5.1 percent, while shipments to Italy declined by 0.5 percent. Elsewhere in the EU, Denmark and Sweden recorded particularly strong increases of 22.5 percent and 11.4 percent, respectively. Outside Europe, exports to India rose by 11.1 percent, while shipments to Canada increased by 10 percent.

The US remained Germany’s largest individual machinery export market with a 13.1 percent share, followed by China with 7.1 percent and France with 6.9 percent.

Steel and aluminum tariffs weigh on outlook

VDMA expects uncertainty to remain elevated during the second half of 2026. According to the association, US tariffs on steel and aluminum derivatives, as well as the possibility of further tariff measures, are creating additional pressure on business with the US.

Meanwhile, the decline in exports to China, which has continued since 2022, is expected to persist amid weak demand and increasing competitive pressure from Chinese suppliers in international markets.

Within the EU, weak order intake from eurozone countries is also weighing on the outlook.

VDMA stated that further free trade agreements and a more efficient EU single market will be important for German machinery manufacturers seeking to diversify their export markets amid continuing trade and geopolitical uncertainty.

Germany’s stockholding steel distributors sold 4.95 million tonnes of products in the first half of the year, around 130,000t more than in H1 2025, according to distributors’ association Bundesverband Deutscher Stahlhandel (BDS).

While this marks a year-on-year increase, it should be noted that H1 in 2025 and 2024 saw y-on-y falls of around 100,000t, respectively.

The first two quarters of 2026 were broadly similar with 2.495mt sold in Q1, and 2.455mt in Q2, Kallanish learns from BDS. The average sales volume per month was 818,300t.

Split by product group, long products on average accounted for 1.565mt (up from 1.475mt), and flat products for 2.929mt (up from 2.904mt). Miscellaneous other products, such as wire rod, accounted for 472,000t (up from 448,000t)

Distributors sold 848,000t in June, nearly 70,000t more than in June 2025. BDS provides no interpretation of the increase, however, its likely that the base effect of particularly low prior-year sales had some impact. The increase of this year’s sales over last year’s was already seen in the first quarter.

In terms of inventory tonnage, the monthly average was 1.896mt in Q1 and 1.884mt in Q2, both slightly below the prior-year value. Inventories of long products on average in the second quarter were 617,000t, flat products stood at 1.229mt, and miscellaneous products at 38,000t.

This remains below the monthly average inventory of 2mt in 2022. Since early 2023, only three months, July 2023, February 2024 and April 2024 have eclipsed that level.

Stainless long steel maker Cogne has expanded the truck fleet at its German distribution centre in Bremen, Kallanish learns.

The unit Cogne Edelstahl has added another large-size tandem trailer truck to strengthen its independence for deliveries.

The company highlights the investment as a “clear answer” to stricter requirements and increasing time pressure at its customers.

It has conducted a survey among its customers, which it says has underlined the significance of reliable logistics. In the poll, 95% of respondents gave reliability as the prime criterion for selecting a supplier. Nearly 76% cited timeliness as their most critical challenge while 84% highlighted the importance of local contacts and short distances.

The warehouse is located in northern Germany in Stuhr near Bremen but will also fill in for jobs from Cogne’s house in Neuss, for deliveries to the Ruhr and the Sauerland.

Bottlenecks in the transportation system in Germany and neighbour countries have become an increasing challenge in the past two years.

Another northern German distributor highlights the increasing advantage of an in-house fleet, as prices for standard spot transports at hauliers have risen by up to 50%, sometimes reaching above €1,000 ($1,165).

A reliable picture of coil price trends will not emerge before September, northwestern European players believe. 

With many countries still on vacation, August has not brought any increase or decline to price levels, given the limited market activity.

At least one mill has stopped giving out offers at all, and apparently others have followed, buyers say. Buyers now expect that mills will return at month’s end with new prices.

A Benelux service centre manager tells of orders for hot-rolled coil at the beginning of the month reportedly booked at €720–735/tonne ($840-857/t) delivered. He notes that offers of up to €750/t delivered have emerged in the meantime but dismisses them as unaccepted.

Even the lower level of around €740/t delivered, the target defined by the market leader in July, is seen not workable by several buyers.

“You need to be brave to pay that,” a German buyer tells Kallanish. It would mean adding €20/t to his sales prices, which his customers would not accept. “The market is just too weak for that,” he adds.

Prices for cold-rolled and hot-dip galvanized coil do not deviate from the trend of HRC, with a premium of €100/t.

“Remarkably, the price of HDG is again nearly that of CRC,” a Dutch buyer for construction says, assessing both at €820-835/t delivered.

He expects mills to try an increase of €25-30/t but sees little chance that it will be accepted in the quiet market. In Germany, where roughly half of the population is still on school vacation, signals of movement are not expected before mid-September.

Given the lack of competition from imports, buyers do not expect prices to weaken, either but they warn mills of flexing their muscles too much.

“If mills set the mark too high, they might end up selling for less than they said, and that would be a bad signal for the market,” the German buyer says.

European domestic long steel prices remained largely stable in the week to Wednesday August 27, although Italian domestic rebar prices adjusted upward as market participants gradually returned from summer holidays and mills resumed production across the region.
“Clients are starting to come back, check stocks, talk about new orders,” a seller source told Fastmarkets.

Market participants described the market as largely subdued, with demand remaining limited across the region and only a small number of transactions heard during the assessment week.

“Market only reopened this week and so far it feels a bit quieter and slower than usual,” a buyer source told Fastmarkets.

In Italy, tradable levels for rebar were heard at €690-760 ($805-887) per tonne ex-works. Deals were heard at €690-750 per tonne ex-works, with smaller tonnages traded at the upper end of the range, at €730 per tonne in northern Italy and €750 per tonne in southern Italy.

Fastmarkets’ weekly price assessment for steel reinforcing bar (rebar), domestic, exw Italy, was adjusted upward at €690-750 per tonne on Wednesday August 27.

Fastmarkets’ weekly price assessment for steel reinforcing bar (rebar), domestic, delivered Spain, was unchanged at €750 per tonne on the same day.

Meanwhile, workable levels for rebar in Northern Europe were heard at €710-730 per tonne delivered.

Fastmarkets’ weekly price assessment for steel reinforcing bar (rebar), domestic, delivered Northern Europe, remained unchanged at €710-730 per tonne on August 27.

In Southern Europe, tradable levels for mesh-quality wire rod were heard at €660-680 per tonne delivered.

Fastmarkets’ weekly price assessment for steel wire rod (mesh quality), domestic, delivered Southern Europe, was unchanged at €660-680 per tonne on August 27.

In Northern Europe, tradable levels for mesh-quality wire rod were heard at €705-715 per tonne delivered.

Fastmarkets’ weekly price assessment for steel wire rod (mesh quality), domestic, delivered Northern Europe, was unchanged at €705-715 per tonne on the same day.

Tata Steel UK’s Llanwern plant in South Wales is reportedly operating at around half of its capacity amid increased competition from lower-priced steel imports following changes to the UK’s tariff-free steel import quotas, according to the company’s announcement published by The Guardian.

The Llanwern plant, which produces approximately 600,000 mt of galvanized steel annually, accounting for nearly half of UK demand, has been experiencing insufficient orders to keep its production lines running continuously. Workers are reportedly being assigned maintenance and cleaning activities during periods when production lines are idle.

Higher galvanized steel quotas increase import competition

Although the UK introduced 50 percent tariffs on steel imports exceeding tariff-free quotas in July, quotas for certain galvanized steel suppliers were increased. India’s quota rose from 98,000 mt to 125,000 mt, while Vietnam’s quota more than tripled from 51,000 mt to 174,000 mt. South Korea was allocated a quota of 100,000 mt.

Tata Steel UK has raised its concerns regarding the situation with the UK government. Russell Codling, commercial director at Tata Steel, stated that the company’s Zodiac galvanizing line at Llanwern is already being significantly affected by the new quotas and that the current situation is not sustainable.

Pressure on Llanwern raises concerns over Port Talbot transition

Meanwhile, concerns have been raised that prolonged pressure on Tata Steel’s downstream operations could also affect the company’s transition to electric arc furnace-based steelmaking at its Port Talbot plant. Tata Steel is investing £1.25 billion, including a government grant of approximately £500 million, in a three million mt electric arc furnace at Port Talbot.

UK trade union Community has also called on the government to take stronger measures to safeguard Llanwern, highlighting the site’s role in supplying galvanized steel to the automotive and construction industries.

The UK government stated that its steel trade measure is intended to balance the protection of domestic production with maintaining secure supplies. It added that imports under the relevant product category are currently below the established quota levels and that it will continue monitoring the impact of the measure. The quota system is scheduled to be reviewed after 12 months.

Polish domestic long steel prices remained mostly flat in the week to Friday August 21 as the market remained quiet following the recent seasonal slowdown during the summer months, Fastmarkets heard.

“Everything is slow with no demand, nothing is happening right now,” a source said.

During the week, offers for drawing-quality wire rod were reported within the range of 3,000-3,100 zloty ($811-838) per tonne, delivered, with no reports of trading activity heard from the market.

Fastmarkets’ weekly price assessment for steel wire rod (drawing quality), domestic, delivered Poland, was 3,000-3,100 zloty per tonne on Friday, narrowed upward from 2,990-3,100 zloty per tonne the previous week.

Meanwhile, for domestic rebar, prices remained stable.

“Nothing has changed recently, demand for rebars is very low and we don’t see any extra activity before September,” another Polish source said.

Mills’ offers were heard at 2,650 zloty per tonne CPT, while estimates of tradable levels were reported at around 2,650-2,680 zloty per tonne CPT.

Fastmarkets’ weekly price assessment for steel reinforcing bar (rebar), domestic, CPT Poland, was 2,650-2,680 zloty per tonne on Friday, unchanged week on week.

Coil prices in northwestern Europe are little changed, with at least one mill out of the market for now and not giving new offers.

According to various sources, the bottlenecks for shipping on the river Rhine with its low water levels has resulted in one mill cutting back on offers.

The mill tells Kallanish that “deliveries to customers are not at risk”. It is likely the mill is meeting existing order deliveries, but did not state if it is accepting new orders.

“I talked to one of their people only a day ago, and he would not give me an offer,” one steel service centre manager says, an experience echoed by other service centres.

To its customers, the mill refers to the waterway bottlenecks, causing limited supply of raw materials, and reduced production. The SSC manager wonders “how long that argument will be valid, but so far they use it to stay off the market”.

Elsewhere, another buyer says that he has also not received new offers amid a shortage of raw material arrivals.

Some buyers at German distributors have been told that the stand-off could last until the end of the quarter, “which for me means that it cannot be caused by the waterway problems,” a southern German buyer says.

A mill’s absence from the market – for whichever reason – can make sense in the current lull, with many German states still on school holidays.

The earlier announcement by the market leader mill to bring hot-rolled coil up to €740/tonne ($864/t) delivered has not been realised yet. Transactions remain sparse, with many believing there are some deals below this mark.

According to a Dutch manager, various orders for October delivery have been booked at steel mills at base prices ranging from €710-730/t ex-works.