Joint venture between Marcegaglia Steel and Manni Group is now operational
Marcegaglia Steel and Manni Group have officially finalized their joint venture, creating a new entity focused on insulated and sectional door panels.
Following European Commission approval, the venture is now the second-largest panel producer in Europe, with operations in over 70 countries, projected revenue of €500 million, and nearly 700 employees.
The agreement involves Marcegaglia contributing Italian and Polish production facilities to Isopan Spa, with both companies holding a 50% stake. Operating under the ISOPAN and MARCEGAGLIA RWD brands, the joint venture includes 16 production lines across Italy, Spain, Romania, Poland, and Mexico.
The partnership aims to drive innovation, sustainability, and decarbonization in construction, leveraging their combined expertise and global reach. Leaders from both companies emphasized the collaboration’s potential to deliver advanced, efficient, and sustainable building solutions, cementing their roles as key players in the international construction market.
Source: marcegaglia.com
EU HRC quotas exhausted by key Asian suppliers, while others remain untapped
As of Jan. 10, the European Union’s tariff-rate quota (TRQ) system for hot-rolled coil (HRC) imports has been fully utilized by Vietnam, Japan, and Taiwan, according to the latest data from the European Commission. This rapid exhaustion of quotas highlights the strong demand for competitively priced HRC from these Asian countries, which have been key suppliers to the European market.
In stark contrast, 38% of Egypt’s quota remains available, and countries such as Australia, Switzerland, the United States, Canada, and Libya have not yet utilized any of their first quarter quotas, maintaining 100% availability.
Market participants have noted that the swift exhaustion of quotas by Vietnam, Japan, and Taiwan was anticipated, given the competitive pricing and strong demand for their HRC products. However, the availability of quotas from other countries presents an opportunity for European importers to explore alternative sources, particularly as domestic demand remains subdued. Some sources had previously shared expectations that the EU quotas would be filled quickly in Q1, anticipating high port-side stock levels awaiting clearance from Q4 2024.
Domestic European hot-rolled coil prices have remained largely stable since the start of the year, with no major changes in demand reported. Market participants are cautiously optimistic about potential positive developments in the coming days, although the overall sentiment remains one of wait-and-see.
Platts assessed both Northwest European and Southern Europe HRC prices at Eur570/mt ex-works, up Eur10 on the day.
Meanwhile, Platts assessed prices for imported hot-rolled coil in Northwest Europe at Eur535/mt CIF Antwerp, and in Southern Europe at Eur530/mt CIF Italy, both stable on the day.
EUROMETAL asks for clarifications on EU safeguard review
EUROMETAL, the federation of steel, tubes and metals distribution and trading, has formally requested that the European Commission reevaluate certain critical aspects of its review of EU safeguard measures on steel imports.
In a letter to the Commission obtained by Kallanish, the association urges the EC to extend the deadline of 10 January 2025 for the submission of questionnaires related to the review and harmonise customs rules across member states, among other considerations.
Given that the holiday season that occurs from late December to early January, the deadline of 10 January appears to be overly restrictive. A considerable number of EUROMETAL members encountered substantial difficulties in collecting the required data and organising their submissions within the timeline. In response, the European Commission has granted a three-day extension to 13 January. Although the extension is brief, the association contends that it gives businesses more time to better prepare their answers.
The review should also consider the need for standardised customs processes across the EU to make sure that the rules are applied fairly and consistently. This would create a level playing field.
“Divergences in customs rules across member states often result in inconsistent and incorrect declarations, creating unnecessary administrative burdens and an unequal treatment of European importers,” the letter states.
Clarification regarding the definition of “union users” in relation to the review of safeguard measures is urged.
“Specifically, does this definition include the distribution segment (such as service centres, stockholders and traders), which plays a pivotal role in supplying 60% of all steel products to end-users?” EUROMETAL inquires.
The organisation expresses its support for Eurofer’s proposal regarding the establishment of a steel summit by the European Commission. A summit of this nature would serve as a forum for stakeholders to deliberate on the prevailing challenges of the sector and represent an opportunity to work together in identifying solutions that benefit the overall steel value chain.
EUROMETAL represents 17 European national federations of steel distributors, 35 distributors and service centres as well as 25 trading companies.
The European distribution sector procures 70 million tonnes of steel annually and supplies more than a million small and medium-sized end users. It accounts for 60% of the supply of all steel products to end users in EU.
Natalia Capra France
European HRC buyers stay on sidelines in uncertain market
Uncertainty over the future price direction, economy, and political instability in Europe and globally continued to keep buyers on the sidelines.
“Mills are certain they can get higher prices [for HRC] because of reduced imports. But this [import shortage] alone is not enough – the core market fundamentals have not changed and demand is still slow,” a buyer in the Benelux area said.
First-tier mills in the region were largely sold out for February and even March-delivery HRC, according to sources. Although March lead times were still available at some suppliers.
“Before Christmas, a lot of customers bought [HRC tonnages] to secure lower prices,” a second buyer told Fastmarkets. “Some buyers are inquiring about April delivery already, but mills are holding back offers for the second quarter – [there is] too much uncertainty.”
Achievable prices were estimated by sellers at €580-590 ($598-608) per tonne ex-works and at €550-580 per tonne ex-works by buyers.
But producer sources confirmed that the lower end was no longer available. At the same time, offers at €610-630 per tonne ex-works, voiced by a few suppliers at the end of December, had not yet been sealed in deals.
“We don’t get orders at these levels [€610-630 per tonne],” a mill source said.
Italian coil with March delivery was offered to Germany at €610-630 per tonne delivered. A source pointed out that end-of-February delivery was still possible from a supplier, however.
Sources reported some minor-tonnage transactions for such material at no higher than €580-600 per tonne delivered during the week.
A reroller in Northern Europe was offering HRC with March lead times at €580 per tonne ex-works.
Fastmarkets calculated its daily steel HRC index domestic, exw Northern Europe at €565.42 per tonne on Friday, down marginally by €0.83 per tonne from €566.25 per tonne the previous day.
The index was up by €0.42 per tonne week on week and by €4.59 per tonne month on month.
Long-term contracts for the first half and full year of 2025 were sealed with a €60-80-per-tonne discount compared with 2024 levels, sources said, which was “a good outcome for the mills,” a trading source said.
“When negotiations started, automotive [original equipment manufacturers] were asking for a triple-digit discount, so mills can be happy with what they got,” a distributor in Norther Europe told Fastmarkets.
Some contracts for the first half of 2025 were heard done at €650-670 per tonne, compared with €730-750 per tonne from the second half of 2024, sources said.
Meanwhile, in Southern Europe, Fastmarkets calculated its daily steel HRC index domestic, exw Italy at €562.50 per tonne on Friday, unchanged from a day earlier.
The index was flat week on week, but up by €3.50 per tonne month on month.
Local integrated mills were offering HRC for delivery in the first quarter at €580-620 per tonne delivered, which nets back to €570-610 per tonne ex-works.
Buyer estimations of achievable levels were reported at €550-570 per tonne ex-works, depending on the supplier.
Sources expect more clarity on the market situation in the coming weeks, when more market participants come back from holidays.
The market for imported coil has been quiet in recent weeks due to numerous trade restrictions in place, long lead times and uncompetitive prices.
Offers of imported coil were limited in the week to Friday. Turkey was heard offering HRC to Italy at €560-570 per tonne CFR, including the anti-dumping duty.
Indian-origin coil was on offer to Italy at €540-550 per tonne CFR, industry sources told Fastmarkets.
An offer from Indonesia was reported at €550 per tonne CFR.
Most suppliers were offering March shipment.
Buyers estimated workable levels for imports at no higher than €520-540 per tonne CFR.
Polish rebar prices inch up on limited availability
Fastmarkets’ weekly price assessment for steel reinforcing bar (rebar), domestic, cpt Poland, was 2,600-2,610 zloty per tonne ($627-630) on Friday, narrowing upward by 20 zloty per tonne from 2,580-2,610 zloty per tonne a week earlier.
Polish mills were heard offering rebar at 2,610-2,650 zloty per tonne CPT, but buyers did not consider the upper end of that price range to be workable, Fastmarkets heard.
According to industry sources, Polish mills were not willing to give significant discounts, with the workable market price estimated at 2,600-2,610 zloty per tonne CPT.
The Polish rebar market has not fully restarted after the winter holiday break, and no major deals were heard in the assessment week.
Some deals for large volumes exceeding 1,000 tonnes were heard at the end of December at 2,550-2,570 zloty per tonne CPT. But these prices were not included in the assessment because they were not in line with Fastmarkets’ methodology.
A trader source told Fastmarkets that such prices could not be considered indicative of the market because, due to the tonnages, individual prices were negotiated.
According to industry sources, the slight price increase for Polish rebar was due to the limited availability of material during the assessment week.
“Demand is not great. The only reason prices have not started to fall is the restricted quantities available from mills,” a distributor source told Fastmarkets.
The source added that one Polish mill was trying to produce less rebar than normal. “They are inventing stoppages and trying to transition from three to two working shifts,” the distributor said.
According to the same source, prices will start to fall again by the end of January, when more competitive imports were expected to begin arriving at the country’s warehouses.
The trader source also confirmed that limited imports recently had supported the domestic rebar prices.
“In December, there were not [many import] offers from Italy and Germany,” the trader source said, adding that the good weather conditions were also favorable for the construction sector – the main consumer of rebar. All these factors supported domestic prices.
In terms of imports, Germany has been heard offering rebar to Poland at €605 ($623) per tonne delivered since the beginning of 2025.
Offers from Ukraine were heard at €530-550 per tonne delivered at the border.
Long steel consumption ‘below historic levels’
Long steel consumption in Europe has been substantially below historic levels, steel manufacturer CMC, which is present in Poland, said in its report for the fiscal first quarter of 2025 (September-November 2024) on January 6.
“The beneficial effects of improving Polish demand in certain end-market applications, and regional supply discipline, have been largely offset by increased import flows from neighboring nations that have sought an outlet for product not consumed within their home markets,” CMC said.
Last year, Germany significantly increased its rebar exports to neighboring countries to compensate for the lack of activity in its domestic construction sector.
Europe Steel Group, representing CMC’s operations in Europe, recorded net sales of $209.4 million during its fiscal first quarter. This was a decrease of 5.7% compared with the previous quarter’s $222.1 million.
Its earnings before interest, taxes, depreciation, and amortization (EBITDA) were $25.8 million for the first fiscal quarter. But the positive financial result was due to an annual CO2 credit associated with a government program, CMC said.
“Excluding this credit,” the company added, “financial results deteriorated modestly compared with the prior two quarters (EBITDA losses of $3.6 million and $4.2 million respectively) due to metal margin compression driven by high import volumes.”
EU HRC prices rise despite low demand
Domestic European hot-rolled coil prices rose Jan. 10, with no major changes in demand reported since the start of the year. Market participants are cautiously optimistic about potential positive developments in the coming days, although the overall sentiment remains of wait-and-see.
A Germany based service center source noted that while there have been no significant changes in demand, there is expectation of positive developments over the next few days.
Similarly, a German buyer pointed towards steel producers continuing to attempt to increase price levels but noted minimal interest from the wider market.
An Italy based mill source echoed this sentiment, stating that the market remains stable with no big changes.
Tradable values for HRC were reported at Eur570-590/mt ex-works, with larger tonnages trading at Eur560-570/mt and smaller tonnages at plus Eur580/mt.
A South European distributor source mentioned workable prices for February delivery remaining similar to January’s closing levels at Eur570/mt for HRC and Eur670/mt for CRC base ex-works.
Platts assessed North European HRC prices at Eur570/mt ex-works Ruhr, up Eur10 on the day. Similarly, Platts assessed Southern European domestic HRC prices at Eur570/mt ex-works Italy, up Eur10 on the day.
“There are few import offers and they are not appealing due to the [minimal] price gap with domestic levels, alongside long delivery times, and potential risks of duties,” the South European distributor said.
The source also referred to continued foreign exchange rates adding additional pressure to the market.
Market participants are closely monitoring developments, with the hope that demand will pick up and provide clearer direction for pricing in the coming weeks.
Imported HRC prices in Northwest Europe increased to Eur535/mt CIF Antwerp Jan. 10, while prices in Southern Europe remained stable on the day at Eur530/mt CIF Italy.
“At the moment, it seems as if the hype surrounding green steel has died down,” the German buyer said, discussing carbon accounted steel.
Sources confirmed a continued premium offer level of Eur200/mt for for CO2e content below 1mt, under scopes 1-3, but buying interest remained thin.
Platts assessed Northwest European hot-rolled coil carbon-accounted at Eur630/mt ex-works Ruhr Jan. 10, up Eur10 on the day.
EU Distributors ask European Commission to adjust steel safeguard review process
EU steel distributors also reacted to an alleged set of proposals by the producers’ lobby to tighten steel safeguards.
On December 17, the Commission started a review of safeguard measures for steel amid industry concerns over demand contraction in Europe, Fastmarkets reported.
While the Commission did not comment on possible changes to safeguard measures, industry sources suggested that the review might involve a reduction in quarterly quota allowances for hot-rolled coil and the introduction of new individual quotas for certain origins.
The review process is expected to conclude by March 31, with any adjustments to the current measures expected to come into force the following month.
EUROMETAL outlined several points for the Commission’s consideration, including extending the deadline for submitting questionnaires regarding the review process.
Notably, the deadline for submitting is currently set at January 10.
“The deadline of January 10 for submitting questionnaires is too restrictive, considering the holiday season that spans late December and early January,” the letter reads. “Many of our members and stakeholders face significant challenges in gathering the necessary data and preparing their submissions within the given time frame.”
Another request the association made concerned the harmonization of customs rules across the EU.
“We propose that the review addresses the need for harmonized customs procedures across the EU to ensure fair and consistent application of the measures, in order to assess in this respect a level playing field,” the letter reads.
EUROMETAL also asked for some terminology clarification and proposed to the Commission to involve the association in the organization of a Steel Summit, a high-level event proposed by European steel industry association Eurofer in December.
The summit would involve the steel social partners, member states and high-level officials from EU institutions, with the aim of addressing the crisis in the European steel industry, Eurofer said in December.
Potential changes to safeguards
Eurofer has allegedly set out its proposals to the Commission for the safeguards review, according to an industry source familiar with the matter.
The alleged set of proposals includes:
- reducing the tariff rate quotas (to reflect the declining demand for steel in the EU);
- increasing the safeguard duty from the current 25% to possibly 32-41%;
- changing the allocation methods of quotas and setting a 15% cap on other product categories (similar to that already applicable for HRC and wire rod);
- removing the carry-over option from previous quarters and introducing more country-specific quotas instead of the residual ones;
- not granting new exemptions for developing countries in the final year of application of the steel safeguard measures.
Eurofer did not confirm this information when contacted by Fastmarkets.
“We cannot confirm the [set of proposals]; as of today, we haven’t sent anything yet to the European Commission,” a Eurofer spokesperson told Fastmarkets on Thursday January 9.
Even so, the news triggered immediate reaction among market participants, with the majority being against those measures.
“These trade barriers create additional uncertainty, which is not encouraging demand [for imported steel], so we can expect more demand for EU-made steel, and it’s safer [to book European steel],” a trading source in Europe said.
“Nobody can book 100% of imports or 100% of domestic [steel products]. We need diversified supply sources,” a distributor in Italy said.
EUROMETAL gives EC input on ongoing steel safeguard measure review
European steel distribution and trading association EUROMETAL President Alexander Julius has written to the European Commission Jan. 10 asking for a couple of changes and some clarification on the ongoing functional review of the EU safeguard measures on steel imports initiated in December.
On Dec. 17, the EC announced a review of the safeguard measures applicable to imports of certain steel products with the aim of reassessing the allocation and management of tariff rate quotas to ensure they align with current market dynamics and stakeholder interests.
In the letter addressed to European Commissioner for Internal Market and Services Stephane Sejourne, Executive Vice-President of the EC for the European Green Deal Maros Sefcovic and European Commissioner for Trade Valdis Dombrovskis, Julius requested that the EC extend the deadline for questionnaire submissions from Jan. 10.
He said the Jan. 10 deadline was too restrictive due to the recent holiday season and requested the EC extend the deadline to allow sufficient time for all interested parties to participate fully in the review process.
“Many of our members and stakeholders face significant challenges in gathering the necessary data and preparing their submissions within the given time frame,” he wrote.
Julius also asked for harmonization of customs rules across member states, saying that divergences in customs rules across member states often resulted in inconsistent and incorrect declarations, creating unnecessary administrative burdens and an unequal treatment of European importers.
“We propose that the review addresses the need for harmonized customs procedures across the EU to ensure fair and consistent application of the measures, in order to assess in this respect a level playing field,” he wrote.
EUROMETAL also requested clarification on the definition of EU users within the context of the safeguard measures review, asking whether it included the distribution segment, such as service centres, stockholders, and traders.
Julius said the sector played a pivotal role in supplying 60% of all steel products to end-users and a clear and consistent definition was “crucial to ensure that all relevant stakeholders are appropriately recognized and accounted for in the review process.”
He told the commissioners that EUROMETAL also supported Eurofer’s proposal for the EC to organize a Steel Summit, as it would provide an invaluable platform for stakeholders to engage in discussions about the current challenges facing the steel sector.
Julius said the challenges include “those related to the safeguard measures, and to collaboratively identify solutions that serve the interests of the entire steel value chain.”
We are more than happy to actively participate in this initiative, as we firmly believe that interaction with all our stakeholders is crucial to developing sustainable European manufacturing and steel industry supply chains,” he wrote, saying EUROMETAL remained committed to contributing to essential dialogues.
He said these considerations were vital for ensuring that the revised safeguard measures remain well-aligned with market realities and the interests of all stakeholders in the EU steel sector.
“EUROMETAL stands ready to contribute to the ongoing discussions and provide further evidence or insights,” Julius wrote.
As of Jan. 10, Vietnam, Japan and Taiwan have exhausted the EU’s tariff-rate quota (TRQ) system for hot-rolled coil imports, as per official EC data.
In contrast, 38% of Egypt’s quota is still available. Meanwhile, countries like Australia, Switzerland, the US, Canada, and Libya have not yet utilized their first-quarter quotas, maintaining 100% availability.
Platts, part of S&P Global Commodity Insights, assessed domestic HRC prices in Northern Europe at Eur560/mt ex-works Ruhr Jan. 9, down 19% since the start of 2024.
Italian rebar prices tick up further despite quiet
Some Italian rebar producers are initiating discussions regarding a potential price increase of approximately €20/tonne ($20.6) for deliveries in January, effective next week, Kallanish hears.
Mills previously raised values in December, just before temporarily shutting down their operations for the year-end holiday break. Since then, January asking prices have been at €340/t base ex-works. This compares with €320/t base ex-works earlier in December, which was also achieved in transactions.
Current transaction volume is limited, as buyers are exhibiting a cautious approach, opting to observe market conditions before making commitments. Two buyers, however, say they need to purchase this week.
A few contracts are reported to have been concluded at the base ex-works price of €330/t. A number of buyers are sceptical about the feasibility of an additional €20/t increase, as the €360/t threshold appears unsustainable given the current weak utilisation and pricing dynamics downstream.
Current transactions are priced at €590/t ex-works, including size extras averaging at approximately €260/t. Domestic mesh contracts are also increasing to €430/t, excluding transportation costs – size extras are an additional €300/t, according to sources.
Subdued sales activity continues this week. A rebar seller anticipates the price range of €330-340/t will consolidate next week before contract values progressively rise to a base of €360/t ex-works.
Natalia Capra France
Eurofer proposes reduced safeguard volumes, higher duty
Amid the ongoing review of EU steel import safeguard measures, the European Steel Association (Eurofer) has provided recommendations to the European Commission on making the measures more restrictive, according to Yuriy Rudyuk, partner at Van Bael & Bellis.
Eurofer is proposing reducing tariff-rate quota volumes to reflect declining EU steel demand, raising the safeguard duty to 32-41%, and capping quotas for other product categories at 15%, as was done from July for HRC and wire rod, Rudyuk indicates in a LinkedIn post.
The association has also suggested removing the carry-over option, and replacing residual quotas with country-specific ones. It also advocates halting new exemptions for developing countries in the final year of the measures.
The proposals are expected to face opposition from importers, and industrial users, with the Commission needing to balance Eurofer’s requests against legal constraints under EU and WTO laws, Rudyuk opines.
“We cannot confirm the below as of today we have not yet sent any contribution to the Commission,” Eurofer says in response to a Kallanish request for comment.
The European Commission set the deadline for EU steel users and producers to submit questionnaires as 10 January 2025. The Commission will conclude its review by 31 March 2025, with any decisions potentially applying from 1 April 2025, including a new TRQ volume.
Elina Virchenko UAE