Steelmakers should rethink shift to hydrogen, DRI: EuRIC
European steelmakers should revise their commitments to shift to hydrogen and direct reduced iron-based steelmaking following the increase in energy prices and lack of infrastructure development, says a new position paper by EU recycling industries’ confederation EuRIC.
In the paper seen by Kallanish, it notes that since 2020 most European flat steel producers have announced their move from coal-powered blast furnaces to DRI to decarbonise. However, it says these commitments should be revised following the increased energy prices since the Russian invasion of Ukraine, and delayed green hydrogen development in Europe. The latter is also correlated to high costs and poor market development.
It says that even the largest steelmakers admit that despite massive public subsides, it is not possible to produce steel with green hydrogen within the EU and remain globally competitive due to high energy prices.
It continues that considering current energy prices, the DRI route has become cost prohibitive to scale up in Europe. But it could represent a competitive advantage to emerging steelmaking countries in the Middle East and North Africa region which can benefit from low natural gas prices.
Decarbonising via the EAF route is a more immediate, scalable and economically reasonable solution for Europe; therefore, EuRIC is urging policymakers to develop a framework to incentive increasing scrap-based manufacturing capacity in Europe.
This would also further improve the recovery rates of steel and the quality of recycled steel, as well as ensuring stable demand and drive investment.
Over the past decade, the EU’s recycled steel output has remained stable, but steel production has decreased. The increase in recycled steel scrap exports has compensated for the reduced consumption, due to the downturn in EU production, driven by decreased construction activity and lower demand for vehicles.
To reduce reliance on third-country imports of iron ore and fossil energies for strategic raw materials, it is urgent for the EU to maximise its use of local resources, the paper says.
In recent days, MEPs and industry participants have said that high energy costs continue to threaten the existence of the EU steel industry as well as its efforts to decarbonise.
Carrie Bone UK
Ford job cuts plan causes uproar in Germany
Ford Europe’s plans to cut jobs have been met with a public outcry, particularly in Germany, where Ford operates its biggest European production, with the headquarters in Cologne.
“The co-determination we have lived for decades has been trampled all over by today’s announcement,” union IG Metall writes in a statement sent to Kallanish.
The union is outraged that the company has gone public with its announcement before informing the workforce. “Ford is aligning itself with a number of companies that make their employees pay for mismanagement and strategic helplessness,” says Knut Giesler, head of IG Metall’s North Rhine Westphalia chapter.
Under the irony-free headline “Ford strengthens competitiveness in Europe,” the carmaker announced on Wednesday that it plans to axe around 4,000 jobs in Europe until the end of 2027. This will affect mainly sites in Germany and the UK, Ford writes. According to press reports, 2,900 jobs will be lost in Germany, 800 in the UK and 300 in other countries. Its main plant in Cologne employs 11,500 people, and will lose approximately one quarter of staff.
Ford explains that its passenger car segment has been making losses for years. It also points to the weakness of its e-cars portfolio and cites weak demand for its new Explorer and Capri models.
Ford’s works in Cologne previously introduced short working hours, which it will expand in the first quarter of 2025. Commentators have criticised Ford for being a latecomer to e-cars, offering models that are too expensive for the market.
According to Focus magazine, the company invested €2 billion ($2.2 billion) to enable the Cologne plant to produce e-cars.
Christian Koehl Germany
Spanish rebar, scrap prices stable; market predicts drop
The Spanish rebar and scrap markets saw stable prices this week, as they continue to lag in reacting to price declines observed in other major European markets, Kallanish notes.
Rebar prices remain unchanged, with most local mills still assessing production levels and demand amid a downturn in the market.
“The slowdown is worrying market participants,” one source comments. “Large steel-consuming sectors, such as construction, are unlikely to recover before the year ends.”
Domestic market analysts note that long steel distributors remain sceptical about sales returning to normal levels by year-end. This is despite a partial recovery in public works activity observed at the beginning of the fourth quarter.
“A situation change could come very soon, as the Spanish government implements urgent measures to support post-recovery efforts following the October floods in many affected regions,” the source observes. “The recovery plan for damaged infrastructure is expected to boost steel demand, which could help stabilise rebar prices and prevent a decline in the coming weeks.”
The monthly index for Spanish domestic rebar prices in November increased slightly compared to that in the previous month, show data published by the Spanish Chamber of Commerce. The index stood at 178.46, or 0.52% more than in October. It was also 7.25% higher year-on-year. The index is based on a value of 100 in 2014.
16mm rebar is currently offered in Spain at €333-338/tonne base ($350.8-356.1/t). An additional €262/t for size extras and loading expenses sees transaction values at €595-600/t ex-works. Some mills, however, are selling material at above €605/t.
In scrap’s case, levels are seen moving down by €10-20/t in the next few days for the new E8 quality.
“We have been waiting for weeks for price reductions, but everything remains unchanged,” a local merchant says. “While Megasa has lowered prices by €10, Celsa and Arcelor are still holding firm. However, we believe price cuts are imminent given the latest downturn in the Turkish market.”
The week started with new E8 grade scrap offered in Spain at €360/t ($379.3/t) delivered. Type E40 and demolition grade E3 are currently at €350/t and €335-340/t respectively. Meanwhile, E1 quality is sold at €310-315/t delivered.
Todor Kirkov Bulgaria
European steel beams prices rise amid limited offers, deals heard
Fastmarkets’ monthly price assessment for steel beams, domestic, delivered Northern Europe was €780-790 ($824- 834) per tonne on Wednesday, up by €20-30 per tonne from €750-770 per tonne a month earlier.
Similarly, Fastmarkets’ monthly price assessment for steel beams, domestic, delivered Southern Europe was €780-790 per tonne on Wednesday, up by €20-30 per tonne month on month from €750-770 per tonne.
Sources told Fastmarkets that they had heard transactions booked at higher levels amid reduced offers, with some producers said to be fully booked for December and “out of the market”.
Fastmarkets also heard that producers often target higher prices in November to “pull in the last available tonnage for this year and start January with a high price”.
Market participants said that there was “little difference” in pricing between domestically delivered material in northern Europe versus southern Europe.
despite the market moving up in the month, sentiment was depressed in Europe’s beams market with a gloomy and uncertain outlook for 2025.
Scrap feedstock costs in Turkey’s bellwether market fell in the month due to poor long steel sales in the country’s domestic and export markets, as well as softening steel prices.
Fastmarkets’ calculation of its daily index for steel scrap HMS 1&2 (80:20 mix) North Europe origin, cfr Turkey was $347.20 per tonne on Wednesday, down $19.83 per tonne month on month from $367.03 per tonne on October 21.
Published by: Holly Chant
European steel hollow sections prices widen downward amid poor demand outlook
Sources said market sentiment was depressed and demand poor, with “no light at the end of the tunnel for 2025”.
Fastmarkets’ monthly price assessment for steel sections (medium) domestic, delivered Northern Europe was €740-790 ($781- 834) per tonne on Wednesday, widening downward by €10 per tonne from €750-790 per tonne a month earlier.
Similarly, Fastmarkets’ monthly price assessment for steel sections (medium) domestic, delivered Southern Europe was €740-790 per tonne on Wednesday, widening downward by €10 per tonne from €750-790 per tonne a month earlier.
“The market has been too quiet recently. Customers buy only what they need and nothing more,” a distributor source based in Germany told Fastmarkets.
Meanwhile, hot-rolled coil feedstock costs moved up in the month amid limited trading, with mills in northern Europe having already sold out their December-delivery material and Italian mills targeting higher market levels.
Fastmarkets’ daily calculation of its steel hot-rolled coil index domestic, exw Northern Europe was €561.67 per tonne on Wednesday, rising by €8.54 per tonne from €553.13 per tonne a month earlier.
Published by: Holly Chant
Acciaierie Venete buys distributor Euro Sider Scalo
Italian long steel producer Acciaierie Venete is buying local distributor Euro Sider Scalo, Kallanish learns from market sources.
Initially, the steelmaker will buy 60% of shares in the distributor through the creation of a new company. In time, Acciaierie Venete will increase its share to 100% through a call/put option, Italian competition body Autorità Garante Della Concorrenza E Del Mercato (AGCM) explains in a note.
Euro Sider Scalo is a distributor of high-quality special steel bars with different diameters and qualities. It supplies the mechanical, earth-moving machinery, industrial vehicles, automotive, oil & gas and hot-forging industries.
Natalia Capra France
ArcelorMittal may close two French service centres
ArcelorMittal’s French service centre division is undergoing a restructuring process, which may result in the closure of two service centres in the country, Kallanish notes.
The Reims and Denain service centres, in northern France, are currently facing economic difficulties attributed to a downturn in the domestic steel sector.
ArcelorMittal Centres de Services management met with its service centre units on Tuesday to announce a project to reorganise the company and adapt its production capacities. This includes the shutdown of Reims and Denain.
“In a difficult economic context, ArcelorMittal Centres de Services is facing a sharp drop in activity among its industry and automotive customers which has accelerated in recent months,” an ArcelorMittal spokesperson tells Kallanish.
“During this meeting, the management explained the constraints which led it to present this project, and invited the social partners to a future meeting at the end of November as part of the information/consultation process,” the spokesperson adds. “Negotiations with trade unions will take place on social measures in order to limit the impact on employment.”
“The threat of a decline in production capacity presents a significant concern for European steelmakers, placing the French steel industry at risk,” the CGT unions say. “The impact on employment levels will be substantial. For several months, the CGT ArcelorMittal Service Centres [unions] has been notifying management regarding the prevailing economic and industrial conditions.”
The automotive sector accounts for 60% of total orders, and CGT proposed alternatives to address the demands of the electric vehicle market. “The management displayed a cautious approach, opting not to take immediate action and refraining from investing,” the unions add.
ArcelorMittal’s service centres segment includes eight facilities in France. Denain and Reims offer various services including de-coiling and slitting for the automotive and industrial sectors.
This comes after the news that ArcelorMittal’s long and flat products distribution branch in Bologna, Italy, is also set to permanently close on 31 December. Customers have been notified of the decision and reassured about the status of pending deliveries. The steelmaker’s other distribution hub in Flero, Brescia, continues to operate.
Rumours have been circulating for weeks that ArcelorMittal is mulling the closure of several service centres in Europe.
Natalia Capra France
ArcelorMittal Poland to build hydrogen plant to power steel sheet galvanizing lines
ArcelorMittal Poland has contracted Linde Gaz Polska to build a hydrogen production plant at its Krakow branch to supply process gas to two galvanizing lines, the steel company said.
The PLN 100 million ($24 million) investment has already started with design work underway. The plant will be producing hydrogen from natural gas with the startup planned for the end of 2026.
“The project with Linde is [meant] to ensure a reliable supply of hydrogen for our sheet galvanizing operations,” the director of the Krakow branch, Lukasz Skorupa, said in the company’s statement.
Separately, ArcelorMittal Poland is building several hydrogen furnaces that will make it possible to eliminate ammonia in the annealing plant boosting its safety, Skorupa said.
ArcelorMittal Poland has not used coal as a fuel since 2018, and it terminated coke production in July 2024. Its installations — the hot rolling mill and the cold rolling mill, the galvanizing and color-coating lines — now operate exclusively on natural gas, according to Skorupa.
“We are constantly improving the quality of our products, expanding their range, and at the same time gradually reducing our impact on the environment,” ArcelorMittal Poland CEO Wojciech Koszuta said.
“In our processes, we replace technologies with those that have a lower impact on the environment. Hence the elimination of ammonia and the transition to hydrogen.”
Celsa sells UK, Nordic steel subsidiaries to Czech investor Sev.en
Spain-headquartered long steel producer Celsa has sold its UK and Nordic subsidiaries to Czech investment group Sev.en Global Investments, the two companies announced Nov. 21 in separate statements.
Celsa Steel UK is the largest EAF-based steel producer in the UK with production capacity of 1.2 million mt/year of crude steel at its plant in Wales. Celsa Nordic has operations in Norway, Finland, Sweden and Denmark and produces via its EAF-based plant in Mo i Rana, Norway, with output of 683,000 mt of rebar and wire rod in 2023.
Celsa said it would “devote all the funds received after the divestment to the reduction of Grupo Celsa’s indebtedness in accordance with the legally assumed commitments.”
It did not give a price for the deal, although Spanish newspapers citing industry sources said the price tag was Eur600 million ($632 million).
“Through this important divestment, which is added to the recent increase in share capital and the launch of an ambitious efficiency plan, Grupo Celsa continues with the implementation of its plan to reorganize its industrial and financial situation, focusing on its operations in Spain and on the reduction of financial leverage,” Celsa said.
Earlier this year, Celsa said it was considering selling its international operations in Norway, Poland and the UK to pay off its debts, while in October parent company Celsa Steel approved a capital increase of Eur166 million to fund a comprehensive efficiency and growth initiative.
This is the first entry into the steel industry by Sev.en, which has a track record of targeting restructuring and growth acquisition opportunities, particularly in power generation and mining of various natural resources.
“The integration of Celsa’s steel plants will enhance Sev.en Global Investments’ diverse portfolio by adding a combined production capacity of 2 million mt of steel products annually. These products, primarily used in construction applications such as bars, sections, mesh, and wires, underscore the group’s unwavering commitment to sustainable industrial practices,” Sev.en said in its statement.
Sev.en Global Investments is part of the Sev.en Group, whose beneficiary is Czech entrepreneur and investor Pavel Tyka.
Platts, part of S&P Commodity Insights, assessed Northwest Europe Rebar Ex-Works Wkly at Eur600/mt on Nov. 20, stable week on week. Since the beginning of the year prices lost Eur20/mt, but they are still well below the highest historical prices reached on March 30, 2022 when they recorded Eur1340/mt base ex-works.
Benteler supplies sustainable tubes for construction
Seamless tubes from Benteler Steel/Tube’s CliMore series will be used in pioneering geotechnical applications, Kallanish learns from the German company.
CliMore tubes will be used in the construction industry as micropiles or ground nails for foundation and stabilisation. The steel load-bearing elements transfer compressive and tensile loads under both dynamic and static conditions into the surrounding soil or rock structure, Benteler explains.
As part of a contract signed this month, it will supply CliMore tubes to Ischebeck, a market leader in the field of geotechnical applications and the first customer from construction to opt for this steel type. In contrast to conventional solid bar commonly used for anchoring, Ischebeck uses a tubular solution, thereby saving materials, Benteler notes.
Meanwhile, ArcelorMittal reports signing a contract with ABB for the use of its XCarb steel in ABB’s Kabeldon power distribution system. The sustainable sourcing agreement helps reduce the carbon footprint of key electrification equipment by 29%, according to ArcelorMittal.
Designed for outdoor environments, Kabeldon provides weather-resistant power distribution. Long popular with the utilities industry, the system is now also widely used for electric vehicle charging infrastructure and renewable energy applications.
Christian Koehl Germany