Category: Latest Updates

The management and supervisory boards of German steel distributor Klöckner & Co have declined to recommend that shareholders either accept or reject Worthington Steel’s €11.00-per-share delisting acquisition offer, the company said.

Following separate reviews of the offer document, both boards concluded that the proposed delisting is in Klöckner’s best interests. They said closer integration with Worthington Steel should simplify the companies’ structures, provide greater strategic flexibility and support growth in Europe and North America, particularly in higher-value-added products and services.

Worthington Steel is making the offer through its wholly owned subsidiary Worthington Steel GmbH. It already controls approximately 62% of Klöckner’s shares.

The offer is not subject to any completion conditions and can proceed regardless of the acceptance level. Klöckner intends to apply for the revocation of its Frankfurt Stock Exchange listing no later than seven business days before the acceptance period ends. The delisting is therefore expected to become effective immediately after the period expires.

Klöckner warned that shareholders retaining their shares will probably face significantly reduced liquidity after the delisting. The shares will cease trading on the regulated Prime Standard market in Frankfurt, while several transparency and disclosure requirements will no longer apply.

Worthington Steel also announced in March that it intends to conclude a domination and profit-and-loss transfer agreement with Klöckner. The cash compensation available to minority shareholders under any such agreement has not yet been determined and could be above or below the current offer price, Klöckner noted.

The offer acceptance period is scheduled to close at midnight Frankfurt time on 12 August 2026.

Source: kloeckner.com

The European HRC market is about to enter the holiday lull and, while domestic demand has been almost completely silent, some import activity has still been seen for both slab and HRC. 

A 30,000 mt HRC deal was closed to southern Europe from Turkey at $570/mt FOB or around €565-570/mt CFR including tax. Another buyer in Europe is reported to have booked from Turkey at $575-580/mt FOB. In addition, 25,000 mt have been sold to Spain at €745/mt DDP from Japan, which is considered high. “Japan is first class material. They don’t apply extras for S275jr… customers in Bilbao only buy on DDP basis, some customers in Tarragona or Sagunto can buy on CFR basis… and take care of CBAM as well as risks with the duty,” a trader told SteelOrbis.

In addition, sources reported Egypt has been offering at $725/mt DDP including CBAM this week, while Taiwan has been offering at €720/mt DDP. The latest prices from India have been reported at $640-650/mt CFR following earlier reported deals closed at $630-650/mt CFR.

Local HRC offers across Europe have remained stable due to the lack of trade, with most players expecting a revival closer to early September. In Italy, the realistic level is at €700/mt ex-works, while producers intend to reopen sales after the holidays at minimum levels of €710-720/mt ex-works. Up north, prices are at €705-715/mt ex-works, around the same levels as reported in Spain. The highest targeted levels in Europe are at up to €730-750/mt ex-works, but they are not considered workable for the time being. In addition, sources reported that plate prices in Italy have fallen to €690-700/mt ex-works, falling below HRC prices. “HRC is up due to the quota-related deficit, but in plate the situation is different. [With such a price difference] the price for slab at $570-580/mt CFR is not workable. In my opinion, it should be $540-560/mt CFR,” a source told SteelOrbis.

In the slab segment, an Italian mill, according to sources, has recently booked a full cargo of Indonesian slabs at $470/mt FOB or around $540-545/mt CFR for HRC semis. Offers from Vietnam stand at $540-545/mt CFR, while China has been offering plate material at $570-590/mt CFR. Turkey was offering slab at $560-560/mt CFR, while Algeria, according to sources, was indicatively offering at $490-500/mt FOB, with around $30-40/mt freight estimated for medium lots.

Author: SteelOrbis Editorial Team

steelorbis.com

Domestic steel coil prices in Europe traded higher in the week to 24 July, although some steelmakers still had limited volumes of discounted material.

Average transaction prices for hot-rolled coil (HRC) in Northwest Europe have been heard at EUR720-730/t ex-works for September rolling.

Some steelmakers, however, have booked HRC at around EUR700/t ex-works, but the volumes were limited and only available to a limited number of customers seeking to acquire steel with specifications the mills needed to fill their production plans for.

The lower prices are expected to fade as order books fill for the third quarter, supported by the effects of the EU’s new tougher steel import quotas and the Carbon Border Adjustment Mechanism (CBAM).

Northwest European mills have been offering HRC at EUR740-760/t ex-works, and market sources expect that deals will be settled at the target prices later in August-September, when market activity recovers from the summer lull.

While upward sentiment is strong in the European market, participants expressed concerns regarding imports of downstream goods produced from steel, a segment not restricted by trade measures, and the lack of demand recovery. Sources said that unless the EU authorities take action, imported steel will increasingly enter the EU embedded in manufactured steel products, harming both steelmakers and steel distributors.

“Demand is slow and the question is what demand will there be in September? The uptrend is here to stay, but what will happen with imports of steel-containing goods,” a Benelux-based distributor said.

Although real demand is unlikely to recover beyond seasonal fluctuation, the trade policies will allow European steelmakers a larger share of the market, supporting domestic prices.

“Real consumption will not improve this year, but European mills will enjoy a bigger market share due to quotas,” an Italian service centre source said.

Further supporting the domestic price rise, distributors reported a recovery in prices for slit and cut coil, signalling that end consumers have caught up with the uptrend.

In Italy, deals for domestic HRC have been settled at EUR700/t ex-works, with mills seeking an increase to EUR720-740/t ex-works.

Downstream coil segment

Domestic prices for both cold-rolled (CRC) and hot-dipped galvanized (HDG) coil also increased over the week. In Northwest Europe, steelmakers claim that they have closed September rolling for both products.

Domestic CRC prices in the region have been reported at EUR800-840/t ex-works, with the majority of indications heard at around EUR820/t ex-works. HDG prices have been heard at EUR800-850/t ex-works.

The limited availability of imported HRC, used by re-rollers as feedstock for downstream coil, after the new quota system came into force has restricted sales volumes of CRC and HDG, sources said. Some market participants suggested that the re-rollers might face significant feedstock shortages.

Indian exporters return to Europe

Steel producers from India have returned to the European market and made some sales as they have quota volumes available and have guaranteed potential buyers lower embedded carbon emissions, securing lower CBAM duties.

Some sources said that exporters from India were offering to cover 50% of potential CBAM duties, but the majority of market participants questioned whether that could be enforceable since the duties for 2026 would be paid in late 2027. The prices for Indian HRC, however, were competitive enough to attract buyers even with tariff-rate quotas and CBAM risks.

A deal with a large Italian buyer for Indian HRC has been heard at EUR565/t CIF, as the buyer usually purchases larger lots, allowing for price discounts. Offers of Indian material have been reported at EUR580/t CIF Italy.

Turkish exporters have been offering HRC at EUR590/t CIF Italy, but European buyers have been avoiding such purchases due to risks related to the new quotas.

Buyers who traditionally relied on imported steel will now have to find alternative sources of supply, most likely turning to domestic producers. In fact, sources have already reported higher demand for European coil.

The new quota system has forced distributors to cancel orders for imported coil, notably material from Asia.

Green steel market

The green steel market has remained split into two distinct segments – distributors and end users.

End consumers have continued to show greater interest in low-CO2 steel, with more buyers making trial purchases and accepting higher premiums. End consumers are less exposed to higher steel costs because they can dilute them within the total cost of the final goods.

Deals for smaller lots of green HRC have been concluded at EUR150-180/t premiums.

Distributors, in the meantime, were reluctant to commit to green steel purchases due to higher risks related to stocking costlier material and their focus on adjusting their traditional steel business to the new reality under tighter quotas and CBAM.

“For distributors, green steel is not a priority as there are more pressing issues of survival under the new regulations, like quotas and CBAM,” a German service centre said.

When distributors had a customer in mind and did not have to store the material, they were ready to accept EUR80-100/t green steel premiums.

Author: Maria Tanatar

opisnet.com

Low water levels on the Rhine River are beginning to affect German steelmaking logistics after a summer heatwave and scarce rainfall reduced navigable depths, forcing barges to sail partially loaded and prompting some steel supply-chain participants to switch freight to road.

The Rhine is one of Europe’s most important industrial transport arteries, linking North Sea ports with Germany’s inland manufacturing regions. At Kaub, the critical Middle Rhine chokepoint for inland shipping, navigable water depth recently dropped to around 55 centimeters on July 17 and at 70 cm at the current level on July 22.

For Germany’s steel industry, the immediate pressure point is not finished steel demand but the movement of bulk raw materials into integrated production sites, especially those connected to the Rhine system.

“The persistent and worsening low-water situation on the Rhine is now affecting the supply of raw materials to thyssenkrupp Steel’s Duisburg site,” a thyssenkrupp Steel spokesperson said to S&P Energy on July 21. “Our own push-barge fleet has been taken out of service due to the low water levels.”

The company said it was using externally chartered vessels that had been secured as a precaution and could continue operating because of their lower draft. “In addition, thyssenkrupp Steel has implemented a range of measures to limit the impact on production as far as possible. Nevertheless, the current development is leading to constraints in our raw material supply. We have therefore already adjusted our hot metal production accordingly,” the spokesperson said.

“Customer supply is currently not at risk. The further development of the situation and its impact on supply and production are being continuously assessed by our dedicated low-water task force,” thyssenkrupp Steel added.

The Duisburg site is one of Europe’s largest steelmaking hubs and is heavily reliant on stable inbound logistics for raw materials such as iron ore, coal and other bulk inputs.

Downstream steel distributors and processors said the impact so far was manageable, though freight costs were rising in some regions.

“Rhine water levels have some impact of course. But it happens every year,” one German service center source said. “We supply to the north through ships and barges, but now we have to use trucks, which affects costs a bit.”

The German steel distributors’ association BDS said the issue was more acute for steel producers than for its member companies.

“This is certainly an issue for steel producers in terms of supply of raw materials,” a BDS spokesperson said. “So far we haven’t heard of major problems for our member companies. The vast majority of them are supplied by truck — and sometimes train.”

Market sources said the current disruption has not yet translated into broad shortages of flat steel, but it has added another layer of uncertainty to a market already balancing regulatory changes, restrained import interest and summer-season demand softness.

The reduced Rhine levels and potential supply-chain effects have come during a period of relative price stability following earlier regulatory upheaval and supply-driven bullishness. Platts assessed European hot-rolled coil at Eur710/mt ex-works Ruhr, up Eur30/mt since June 1, as the market also contended with the European Commission’s new safeguard regime and limited appetite for imports following changes implemented July 1.

Steel buyers said the low-water issue alone was unlikely to drive a broad price rally unless production cuts deepened or persisted. However, the situation could support mills’ resistance to lower bids if raw material movements remain constrained and logistics premiums increase.

Author: Annalisa Villa

spglobal.com

German steel distribution sales strengthened in June, with total shipments rising 7.9% month over month to 848,015 metric tons, according to data from the German steel stockholders’ association BDS released July 22, pointing to a firmer end to the second quarter after a softer May.

June sales were 8.3% higher year over year, marking the strongest monthly sales since March 2026, when volumes reached 943,927 mt, BDS data showed.

Despite the June rebound, the second-quarter average of 818,333 mt/month was down 4.8% from the first-quarter average of 859,802 mt/month, reflecting the particularly strong March figure. However, Q2 sales were still 4.3% higher year over year and broadly in line with Q2 2024, suggesting German distribution demand has improved compared with last year but remains below the stronger levels seen in the mid-to-late 2010s.

Long and flat steel products registered an increase in June. Long steel sales increased 8.4% month over month and 9% year over year to 292,906 mt, and flat steel sales rose 10.1% month over month and 8.1% year over year to 481,528 tonnes.

Sales of other steel products fell 5.9% month over month to 73,581 mt in June, although they remained 7.4% higher year over year, BDS data showed.

Total German steel distribution stocks rose modestly in June to 1.892 million mt, up 0.9% from May and 2% from June 2025. The increase was driven mainly by flat products and other steel categories, while long steel inventories continued to decline, according to the data.

Long product stocks fell to 601,814 mt in June, down 1.6% month over month and 8.8% year over year. Flat steel stocks rose 1.9% month over month and 8% year over year to 1.249 million mt in June.

The data points to a German distribution market recovering from weaker demand in 2025 but still operating below historical norms. June’s stronger sales provided a positive close to Q2, particularly for long products, while stock levels remain broadly controlled.

Platts, part of S&P Global Energy, assessed domestic hot-rolled coil in Northern Europe at Eur710/mt ex-works Ruhr on July 22, stable on the day.

New car registrations across the EU rose 5.7% in the first half of 2026 to 5,896,683 units, driven by surging demand for battery-electric and hybrid vehicles, which could reshape steel consumption patterns across the bloc’s struggling automotive supply chain, according to data from the European Automobile Manufacturers’ Association released on July 23.

Battery-electric cars accounted for 20.7% of the EU market through June, up from 15.6% a year earlier, with 1,220,890 units registered, according to ACEA. The shift toward electrified powertrains comes as the European steel industry grapples with six consecutive quarters of declines in automotive sector output, according to Eurofer, the European Steel Association. The divergence highlights how evolving vehicle technologies are reshaping material requirements even as overall manufacturing activity remains subdued.

“The market continued to benefit from robust consumer demand for a range of electrified technologies, driven primarily by market support measures,” ACEA said in its statement. Hybrid-electric vehicles lead as the most popular powertrain choice among buyers, while plug-in hybrids captured 9.8% of the EU market.

The transition to electric vehicles typically requires different steel grades and quantities than traditional internal combustion engine cars. A mid-size car contains approximately 900 to 1,400 kilograms of steel, according to Eurofer data, used in the body, powertrain, suspension, and other components. Battery-electric vehicles often require advanced high-strength steels for structural components to offset battery weight while maintaining safety standards.

Steel sector headwinds

The automotive sector remains the weakest major steel-using industry in Europe, with output declining for six consecutive quarters and remaining well below pre-pandemic levels, Eurofer said in its June economic report. After a small rebound of 0.8% in the third quarter of 2025, output contracted again in the fourth quarter by 1.3% due to multiple uncertainty factors, including overall manufacturing sector weakness and slower-than-expected EV uptake.

Eurofer now forecasts a further moderate decline of 0.2% in 2026, down from a previous forecast of 0.9% growth, reflecting ongoing trade and geopolitical tensions and energy price increases. The sector is expected to return to growth only in 2027, with a projected increase of 2.9%.

France led battery-electric car registration growth in the January-June period, surging 62.9%, followed by Germany at 48% and Denmark at 41.2%. These three markets, along with Belgium, accounted for 63% of all battery-electric car registrations in the EU. Belgium posted a more moderate increase of 8.2%, compared with the larger markets.

Hybrid-electric vehicles remained the most popular powertrain choice, with 2,198,148 units registered, accounting for 37.3% of the EU market. Plug-in hybrid registrations totaled 577,735 units, representing 9.8% of EU registrations, up from 8.5% in the same period of 2025.

The combined market share of gasoline and diesel cars fell to 29.7% from 37.8% a year earlier. In the first six months of the year, gasoline car registrations declined 17.2% to 1,309,153, and the market share for gasoline fell to 22.2% from 28.4% in the first half of 2025.

Diesel car registrations declined by 16.5%, accounting for 7.5% of new car registrations, down from 9.4%.

As a highly export-oriented industry, the EU automotive supply chain remains particularly exposed to energy and trade shocks, Eurofer said. The steel association noted that persistent geopolitical headwinds continue to weigh on the outlook for both the automotive and steel sectors.

The shift toward electrified vehicles could eventually support steel demand recovery if production volumes rise, though the timeline remains uncertain amid ongoing macroeconomic pressures and trade tensions affecting European manufacturing.

Platts, part of S&P Global Energy, assessed imported HRC in Northern Europe at Eur585/mt CIF Antwerp July 22, up Eur5/mt, and in Southern Europe at Eur580/mt CIF Southern Europe, stable day over day.

Author: Annalisa Villa

spglobal.com

Hydrogen-based, direct-reduced iron project developer GravitHy has filed building permit and environmental authorization applications for its planned low-carbon iron project at Fos-sur-Mer, France, marking a key regulatory step for one of Europe’s emerging hydrogen-based steel decarbonization projects.

The French industrial company is targeting an annual production of 2 million metric tons of hot briquetted iron at the Fos-sur-Mer location, a strategic location due to the area’s port and logistics infrastructure, access to industrial water, available land and proximity to steel value-chain participants, such as Marcegaglia Fos-sur-Mer and ArcelorMittal.

The material is intended for use in electric arc furnaces, offering European steelmakers a lower-carbon feedstock as the sector seeks to reduce reliance on coal-based blast furnace routes.

GravitHy’s process is based on the direct reduction of iron ore using low-carbon hydrogen produced on-site through water electrolysis. The company says the project could help steelmakers cut emissions by about 90% compared with conventional processes, while the plant could avoid up to 4 million mt/year of CO2 emissions at full capacity.

The company said the permit filing is a decisive step ahead of a final investment decision, underscoring the commercial and policy momentum behind hydrogen-based iron production in Europe.

Platts, part of S&P Global Energy, assessed Northwest European hot-rolled coil carbon-accounted at Eur775/mt ex-works Ruhr July 22, stable day over day.

Author: Annalisa Villa

spglobal.com

New trade measures applied since July 1 are seen as “a game-changer” in the European steel market, Spanish stainless producer Acerinox said July 24, with the company forecasting a turnaround in profitability for its domestic operations.

“The measures are fundamental to mitigate production surpluses exported from countries with overcapacity and to restore competitiveness to the European industry,” CEO Bernardo Velzaquez said.

Coupled with the Carbon Border Adjustment Mechanism (CBAM), which was introduced in January, imports into the bloc have given local producers a supply gap to fill, and with this backdrop, the company’s 1 million metric tons/year Acerinox Europa plant in Spain is expecting to return a positive EBITDA from the third quarter, he said.

As a result of the CBAM, imports are down from 24% of the market to a 16% market share, and with the new measures, this may drop to 12% or 13%, Velzaquez told analysts on a call.

The overall impact has been a 31% drop in imports to Europe in the first half of the year, he said. This has seen “customers seeking local suppliers” to the point that Acerinox’s Spanish unit reported a positive EBITDA in June and is forecasting a turn to a positive figure for the third quarter following a difficult first half in which the plant had to recover from a fire in the fourth quarter of 2025.

The damaged hot material pickling line was back at full operation by April, allowing it to boost output 20%, the company said, without providing volume figures.

However, European demand remains subdued “due to geopolitical uncertainties,” the company said.

The market is “waiting for investment projects” particularly in the oil and gas sector, Acerinox said. The unit in Spain will go offline for two weeks in August for the usual summer shutdown, management said.

Production uptick

The company’s worldwide melt shop steel production in the second quarter amounted to 540,000 mt, up 10% quarter over quarter, boosted by the restart of the Acerinox Europa line.

Cold rolling output was 318,000 mt, down 1% year over year and long product output 42 million mt, up 6% year over year.

Acerinox operates steel production sites in Spain, Germany, the US and South Africa, with a nameplate melting shop capacity of about 3.5 million mt/year, according to the company.

In the US, the company said demand from the aerospace and industrial gas turbine sectors had been strong, and it had seen “consistent order entry improvement.”

It reported that a $244 million expansion project at North American Stainless had been completed, with a new cold-rolling mill fully operational from June as well as planned upgrades to its annealing and pickling line.

The expansion will increase production capacity at the largest integrated stainless steel factory in the US by 20% to 1.2 million mt/year.

Author: Gianluca Baratti 

spglobal.com