Swiss Steel is selling its entire subsidiary in Brazil
Metinvest Adria seeks third partner for Piombino EAF project, construction may slip to 2027
Metinvest Adria, the joint venture between Ukrainian steelmaker Metinvest and Italy-based plantmaker Danieli, is working to bring a third investor into its project for the construction of a new electric arc furnace-based steel plant in Piombino, Italy, which is set to produce hot rolled coil (HRC).
According to Italian media reports, construction work could be postponed to spring 2027, implying a delay of around eight to ten months compared to the original schedule. The possible postponement is reportedly linked both to the complexity of the permitting process and to the need to complete the project’s financial structure. The overall investment is estimated at approximately €3.2 billion, including €285 million in public funding.
In particular, the pool of banks involved in financing the project has reportedly requested that the shareholder structure be strengthened through the entry of a third financial or industrial partner.
Metinvest Adria CEO Luca Villa stated that the company has already received several expressions of interest from infrastructure investment funds, industrial players linked to the steel value chain, as well as Italian and international steelmakers. The company is aiming to finalize the process by the end of October.
Meanwhile, the environmental authorization procedure is moving forward. Metinvest Adria said it submitted the additional documentation requested by the Tuscany regional authorities on August 11 and August 20, following a request for clarifications and supplementary information issued on July 20 as part of the environmental impact assessment (EIA) screening procedure.
According to the company, the procedure is progressing in line with the timeframe established by national and regional regulations. Following the submission of the additional documentation, the competent authority has 45 days to issue its decision. The current deadline for the completion of this stage is October 4, 2026, subject to any exceptional extension provided for by law.
Metinvest Adria also clarified that the submission of the supplementary documentation will not trigger a new 30-day public consultation period, as this stage has already been completed.
A further key step is scheduled for October 20, when Italy’s Ministry of Enterprises and Made in Italy (Mimit) will hold a new meeting to review the progress of the Piombino project.
As SteelOrbis previously reported, the Metinvest Adria project is one of the key elements in the broader plan to revitalize the Piombino steelmaking hub, alongside the industrial restructuring process involving JSW Steel Italy.
Romania approves new railway investment plan with potential support for steel demand
Romania has approved a new railway infrastructure development strategy for 2026-30, setting out a broad investment program focused on the renewal and modernization of the country’s rail network. Although no direct estimate for steel consumption has been included, the scale of the planned works could generate additional demand for rail and construction steel as projects move forward. This could offer some support to the domestic steel market, where consumption has remained subdued and infrastructure investments have so far provided only limited support to steel demand.
The need for railway renewal remains significant, with more than 9,700 km of lines, or close to 73 percent of the network, already overdue for renewal. Around €2.66 billion in funding is estimated to be needed during 2026-30 for the renewal of railway lines and critical infrastructure, while another €3.33 billion is envisaged for projects within the Trans-European Transport Network (TEN-T), the EU’s strategic transport network. The program covers track renewal, electrification, rehabilitation of bridges and tunnels, and other infrastructure works, providing potential demand for rails, rebar, structural steel and related products.
Nevertheless, Romanian market participants remain cautious regarding how much of the announced investment will translate into steel consumption. A local trader told SteelOrbis that the Romanian state is already struggling to finance ongoing works, while significant delays continue to affect existing projects, raising doubts over the feasibility of another large investment program. Financial pressure across the wider economy has also intensified, with 1,016 insolvency cases opened in July, up around 26 percent year on year, while insolvencies in residential and non-residential building construction increased by almost 48 percent. Against this background, the railway strategy could still offer meaningful support to steel demand, although its real contribution will depend on how effectively the planned investments are financed and brought into execution.
German finance minister calls for firmer China stance amid pressure on steel industry
Speaking in Bitterfeld-Wolfen, Klingbeil said Germany could no longer rely solely on traditional free-trade principles while China strengthened its competitive position.
“They’re not playing by the rules,” Klingbeil, a co-leader of the Social Democrats and Germany’s vice chancellor, said. “Overcapacity, state subsidies, joint venture obligations – all these things.”
“We simply have to do more in this regard,” he added.
His comments come amid growing concerns over Europe’s industrial competitiveness. European policymakers have increasingly argued that stronger trade-defense measures and industrial support mechanisms may be necessary to counter competitive pressures from China.
In June, EU leaders tasked the European Commission with preparing further measures aimed at addressing the bloc’s trade imbalance with China.
In April, the European Steel Association (Eurofer) welcomed the EU’s new steel trade measure, describing it as an unprecedented response to record import levels and global overcapacity.
The EU’s latest steel trade measures, which entered into force on July 1, reduced tariff-free import quotas to 18.3 million tonnes and introduced a revised quota allocation system aimed at addressing global overcapacity and unfair trade practices, as previously reported by Fastmarkets. According to Eurofer, imports of semi-finished and finished steel products into Europe rose by 14% year on year in 2025 to 40 million tonnes, while EU crude steel production fell by 2.9% year on year to a record low of 125.8 million tonnes.
Klingbeil also pointed to China’s ability to produce cheaper green steel at a time when European producers are facing rising decarbonization costs and weak demand.
Growing support for European industrial preference
Klingbeil’s remarks reflect a broader shift in the debate over European industrial competitiveness, particularly in sectors such as steel and automotive manufacturing.
Over the past five years, imports from China have nearly doubled, rising from €3.9 billion to €7.3 billion, now accounting for a quarter of all EU automotive components imports, German industry association ArGeZ said, citing data from CLEPA, the European Association of Automotive Suppliers.
Combined with US trade measures, this has put European manufacturers at a disadvantage and increased the need for proportionate trade-defense measures such as a European preference scheme.
Earlier this August, ArGeZ backed the European Commission’s proposed Industrial Accelerator Act (IAA), arguing that the legislation could strengthen domestic manufacturing, accelerate decarbonization and expand European production capacity. The proposal would introduce “Made in Europe” requirements and low-carbon criteria in public procurement and support programs covering strategic industries, including steel and automotive manufacturing.
Implications for green steel investment
Industry groups increasingly argue that trade competitiveness and decarbonization can no longer be considered separately.
Eurofer warned that rising import pressure and global overcapacity are undermining the economic viability of European steelmaking at a time when producers are being asked to invest heavily in low-carbon technologies. According to the association, measures that support domestic steel production are also necessary to enable continued decarbonization efforts.
A study published by economists at the University of Mannheim in July concluded that lower production costs alone would not be sufficient to secure the success of climate-neutral steelmaking in Germany and Europe. The researchers argued that measures such as “Buy European” procurement policies, protective tariffs and public participation in strategically important steelmakers may be necessary to maintain industrial capacity and support domestic demand.
Similar concerns were highlighted in a PricewaterhouseCoopers (PwC) Germany study published in August.
PwC said the transformation of the European steel sector is stalling, with nearly half of announced green steel projects postponed, scaled back or halted amid high energy costs and uncertainty over hydrogen supply. At the same time, new low-emission steelmaking capacity is being built in the Gulf States and India, designed for exports to Europe and creating potential competition for European producers.
Fastmarkets previously reported that the consultancy identified energy costs, hydrogen availability and policy support as critical factors for Europe’s low-carbon steel competitiveness.
Fastmarkets defines green steel as material with combined Scope 1, 2 and 3 carbon emissions not exceeding 0.8 tonnes of CO2 per tonne of steel produced – where Scope 1 refers to direct emissions generated by an entity or its subsidiaries; Scope 2 refers to indirect emissions from energy used by an organization; and Scope 3 refers to indirect emissions beyond an organization’s control.
Market participants have told Fastmarkets that uncertainty over future demand remains one of the biggest barriers to investment in green steel production.
Fastmarkets’ weekly price assessment for green steel domestic, flat-rolled, differential to HRC index, exw Northern Europe, was €150-200 per tonne on August 20, unchanged week on week.
Author: Nia Radenkova
Vlada Novokreshchenova in Ukraine and Ivelina Nikolova in Bulgaria contributed to this report.
BMW’s research project demonstrates feasibility of metal recycling
High-quality material loops are technically feasible in the automotive industry, and copper-bearing impurities in steel scrap can be reduced notably, according to BMW, following the Car2Car research project it conducted with partners.
The main focus of the project was on steel, aluminium and copper, but it also considered other materials like glass. BMW’s consortium of partners included Scholz Recycling, thyssenkrupp Steel Europe, Salzgitter Mannesmann Forschung, alongside academies like TU Bergakademie Freiberg.
BMW says the findings show that additional processing and sorting steps can significantly increase the potential of high-quality material loops.
The project’s key findings are illustrated by the example of steel. Up until now, copper-bearing impurities from cables, connectors and other components have hindered the recycling of end-of-life vehicle scrap into high-quality automotive steels. The project has now demonstrated that an additional processing step can substantially improve scrap quality, BMW claims.
Copper contamination was reduced in a targeted manner by sorting the steel scrap. This ensures high-quality steel scrap as the starting material for new flat steel that meets the requirements of modern automotive applications. A patent application has been filed for this process, Kallanish learns.
The steel coils produced using this method were integrated into industrial production following successful material and quality testing. “In the field test at BMW Group Plant Leipzig, more than 100,000 series parts were produced using this steel and installed in vehicles – making the project’s results tangible,” says Hilke Schaer, Car2Car project manager at BMW Group
However, for large-scale industrial implementation, scalable process chains, additional infrastructure and viable business models are still needed, BMW notes.
ADI BF restarts, Federacciai joins race for control
Blast furnace No. 2 at the Acciaierie d’Italia (ADI) steelworks in Taranto has restarted pig iron production 24 hours after an anomaly disrupted its operation on 23 August, sources at the company tell Kallanish.
The asset is now running and is currently the only active blast furnace at the site. BF No.1 has been seized by authorities, while BF No.4 is idled for maintenance works. The Milan Court of Appeal has previously ordered the shutdown of the hot end area by 26 October.
Authorities, meanwhile, are considering launching a new tender following the court ruling and remain in talks with Jindal Steel International for the sale of the company.
US investment firm Flacks Group has abandoned the race, a source close to the company confirms, and may submit a new offer for Taranto’s real estate assets. The Indian steelmaker is said to have renewed its interest in Taranto despite the court ruling.
Meanwhile, the Italian steelmakers’ association, Federacciai, has submitted a letter of interest for the Taranto steelworks.
A source close to the association confirms that 14 steelmakers have formed a consortium. This includes Acciaierie Bertoli Safau (ABS), Arvedi, Acciaierie Venete, Advanced Steel Solutions (Asonext group), Beltrame, Alfa Acciai, Compagnia Siderurgica Italiana, Duferco Travi e Profilati, Feralpi, Valsabbia, Lucchini RS, Marcegaglia, ORI Martin and Rubiera Special Steel.
Federacciai’s board authorised president Antonio Gozzi to submit a formal expression of interest. Gozzi briefed members on developments at the former Ilva site and the potential role of Italian steel companies in reviving operations of the area unaffected by the hot-end shutdown.
However, the expression of interest “is conditional on a series of enabling conditions being met”, Federacciai’s note says. Additional companies may join the consortium in the coming days.
The Federacciai expression interest is limited to the cold-rolling area and is non-binding but allows the group of steelmakers to access the financial and production figures. A source tells Kallanish the steelmakers could operate the cold rolling area using imported slabs, with one or more electric arc furnaces potentially built over time.
A separate source expresses scepticism toward both the Italian consortium’s interest and a proposal from Jindal, citing the significant investment required to revamp equipment, part of which is currently idled or outdated.
Italian president Giorgia Meloni, meanwhile, recently told the press the government will do anything in its power to save the steelmaker.
Authorities who met recently with workers unions are looking at leasing the cold end area, including the tube mill, and launching a revised tender that reflects the new situation.
Jindal Steel International is said to have sent a letter to the special commissioners saying its interest in Taranto has not changed following the recent ruling and is willing to accelerate the negotiations to reach a deal (see Kallanish passim).
IW Köln: Germany should preserve domestic steel production during green transition
According to a report published by the German Economic Institute (IW Köln), Germany should maintain competitive domestic production in energy-intensive industries such as steel while enabling their transition toward climate-neutral production.
The report stated that energy-intensive industries are currently facing weak demand, global overcapacity and trade policy barriers, while simultaneously being required to carry out a climate-neutral transformation. However, the necessary technical, infrastructural and regulatory conditions for this transformation are not yet sufficiently developed.
IW Köln highlighted the importance of Germany’s integrated industrial value chains, noting that pig iron and steel production generated more than €80 billion in intermediate inputs in 2023. While most of these inputs went into steel processing, more than €22 billion were supplied to sectors including metal products, automotive manufacturing and mechanical engineering. According to the institute, weakening individual parts of this interconnected industrial network could affect entire value chains and increase relocation risks.
Around 5.5 million jobs linked to steel value chain
The report pointed to the steel industry as a particularly clear example of the challenges facing Germany’s energy-intensive sectors. Around 605,000 jobs in Germany depend directly on the steel industry through suppliers and customers, while approximately 5.5 million jobs are linked to steel along the overall value chain.
German crude steel production remained below 40 million mt in 2025 for the fourth consecutive year amid weak domestic and foreign demand as well as substantial global overcapacity. According to IW Köln, Chinese steel producers in particular receive substantial government support, contributing to downward pressure on global steel prices and margins. These economic conditions are making the planned transition toward climate-friendly steelmaking more difficult.
Around half of announced green steel projects face delays
At the same time, the report noted that the development of climate-friendly steelmaking capacity is progressing more slowly than initially anticipated globally, with around half of announced green steel projects experiencing delays. High investment costs, uncertainty regarding hydrogen prices and insufficient offtake agreements are making project financing difficult, including in regions that appear to offer more favorable conditions.
IW Köln argued that production costs alone are not sufficient to determine the future competitiveness of steelmaking locations. Productivity, product quality, delivery reliability, proximity to suppliers and customers, supply-chain risks and expected long-term returns also play an important role.
Domestic steelmaking important for Germany’s resilience
The institute also stressed the importance of domestic steel production from a resilience perspective. According to the report, dependence on imported raw materials such as iron ore and coking coal is fundamentally different from dependence on foreign steelmaking capacity. Raw materials can be obtained through global markets and diversified supply sources, while individual steel production facilities and their capacities cannot be replaced at short notice.
IW Köln stated that imports of competitively priced climate-friendly hydrogen, direct reduced iron and other intermediate products could eventually form part of a competitive German steelmaking system. However, German production sites should be given the opportunity to establish their position within these emerging value chains.
IW Köln calls for energy, funding and trade measures
According to the report, reforming the EU Emissions Trading System (EU ETS) alone will not be sufficient to ensure a successful industrial transformation. Additional measures are required, including lead markets for climate-friendly products, competitive energy prices and safeguards during the transition period in which conventional and climate-friendly production processes operate simultaneously.
The institute also called for transformation funds, including resources from Germany’s Climate and Transformation Fund, to be consistently directed toward these objectives. In addition, it stressed the need for stronger protection against unfair competitive distortions originating outside the EU and for the further development of the Carbon Border Adjustment Mechanism (CBAM).
German machinery exports rise despite trade headwinds
German machinery exports in June showed a year-on-year upward trend, and US penalty duties have harmed transatlantic exports less than expected, says mechanical engineering association VDMA.
June exports rose 6.8% y-o-y and brought a high note to an otherwise mixed first half, Kallanish understands. VDMA cautioned against taking this for a positive forecast, in view of the many unpredictable geopolitical factors. The association noted the increase does not seem to be distorted by big orders for plant building projects, which very often bring a one-off outlier in monthly figures, but do not indicate a trend.
The first half year still saw a nominal 0.8% y-o-y decline and a 2.5% slide if adjusted for price. The value of exports totalled €99.3 billion ($116 billion) in the first half, while imports reached €47.9 billion.
As detrimental factors, VDMA cites the strong euro versus the dollar and the protectionist US trade policy. However, exports to the US have remained stable with a slight 0.5% uptick, achieved mainly in the second quarter. Exports to China fell by 13.8%, while exports within the European Union increased by 1.3%.
The EU accounted for 45.9% of all German machinery exports, compared with 13.1% for the US and 7.1% for China. Individual overseas markets that showed particularly strong growth in the first half were India and Canada, up 11.1% and 10.0%, respectively.
Author: Christian Koehl Germany
German construction sees some recovery in H1
Permissions for residential construction in Germany have gained considerable strength in the first half of the year, but the industry admonishes that this does not mean a quick revival of activity.
The total of new permissions for residential units granted from January through June, at 126,000, was 15% above the figure of the first half of 2025, according to the federal statistics office, Destatis. This was the strongest increase since 2016, the office notes. However, it also cautions that the current increase comes from a relatively low level last year. By comparison, the total in H1 2016 was 182,000 units.
Despite the apparent upsurge of orders, construction association Hauptverband der Deutschen Bauindustrie cautions that this does not automatically translate into orders, which are still sluggish. High interest rates and high costs for building “keep holding residential construction in a stranglehold,” it says.
According to a survey by economic institute ifo, more than one third of companies in the sector anticipate a negative development in the second half of the year. In the first five months of the year, the industry’s order intake dipped by 2%, Kallanish hears.
The association’s manager, Oliver Müller, calls on the federal government to address the crisis in residential construction, which he says has been lasting for five years now. Müller says political institutions “need to pave a way for easy construction in their guidelines and abolish unnecessary requirements”.
In an earlier statement, Hauptverband referred to a poll among the general public, which showed that the shortage of apartments goes together with concern over the deficiencies in Germany’s transport infrastructure.
Rhine Group: Draghi and European business leaders launch lobby group to revive competitiveness agenda
A group of 55 high-level European business leaders, academics and media personalities launched the ‘Rhine Group’ on 24 August to develop solutions to Europe’s competitiveness challenges, building on the 2024 report of former European Central Bank President Mario Draghi.
Draghi, Stripe CEO Patrick Collison — whose company provides online payments — and the group’s executive director, Spanish economist Luis Garicano, will lead the group, which will hold its inaugural session from 20–23 September.
French and German members make up the largest national groups, with twelve members each, followed by seven Italians, six Britons and five Spaniards.
Its members include former French Finance Minister Bruno Le Maire, former Estonian President Toomas Hendrik Ilves, Dutch scientist and former minister Robbert Dijkgraaf, and French Nobel laureate economist Philippe Aghion.
The editors of the Financial Times, the Economist, and the publisher of Le Monde are also members.
The group’s founders argue that Europe is now facing an even more difficult situation than when Draghi’s report was released.
“In every emerging technology that will shape the coming decades, Europe is weak,” the founders wrote.
