Category: Latest Updates

The Italian Association of Scrap, Raw Materials and Steel Distributors (Assofermet) announced that it has joined the manifesto titled “Steel Is a Strategic Resource for Italy,” prepared by Codacons.

The association said it supports the principles and objectives of the manifesto, which aims to place the steel industry back at the center of Italy’s industrial policy.

Assofermet stated that the manifesto makes a significant and tangible contribution to the debate on the future of Italy’s steel industry, noting that the country is at a critical stage in making decisions to secure raw material supply, preserve the competitiveness of industrial supply chains, and support employment.

The manifesto emphasizes that steel is of strategic importance to the Italian economy and key sectors such as automotive, machinery, shipbuilding, and heavy industry. It also states that dependence on imports should be reduced to strengthen supply chain resilience, while stressing that high-quality and strategic imports that cannot be substituted by European Union production should not be negatively affected.

The document further notes that Italy continues to face a significant steel supply deficit, leaving the country’s manufacturing system vulnerable to international market fluctuations, price volatility, and risks arising from geopolitical crises. It therefore states that establishing a long-term national steel strategy to support production investments and strengthen the country’s industrial capacity should be a priority.

Gianluca Di Ascenzo, President of Codacons, said the manifesto aims to draw the attention of public institutions to the strategic importance of steel for the country, adding that Italy cannot ignore demand for such a fundamental raw material, which is indispensable to its industrial supply chains. Di Ascenzo said Italy needs an industrial policy that balances development, sustainability, and the public interest, while strengthening domestic production, improving security of supply, and protecting businesses and consumers from the effects of international crises and market volatility. Welcoming Assofermet’s decision to join the manifesto, Di Ascenzo said it demonstrates that these objectives are shared across the entire supply chain.

Assofermet also reaffirmed its support for the manifesto’s approach, emphasizing that major projects to revive the Piombino steel production hub and Acciaierie d’Italia facilities are central to the future of Italy’s steel industry. The association said these investments represent critical assets for both the country’s industrial future and the strengthening of Italy’s and Europe’s strategic autonomy.

Paolo Sangoi, President of ASSOFERMET Acciai, said Assofermet’s decision to join the manifesto stems from its objective of placing the steel industry back at the center of Italy’s industrial agenda. Sangoi said the revival of the Piombino production hub and Acciaierie d’Italia facilities is a strategic priority for the future of the country’s manufacturing industry, adding that these projects are essential to reducing the national production gap, enhancing corporate competitiveness, and ensuring that steel-consuming industries have access to high-quality steel at competitive prices.

Sangoi also stressed that the development of Italy’s steel industry should be supported through investment in innovation and environmental sustainability, describing both as indispensable for the future of the Italian and European steel sectors.

Author: SteelRadar Editorial Team

steelradar.com

UK Steel and Tata Steel are seeking further improvements to the newly published EU import quotas, Kallanish learns from their respective statements.

The producers’ association says it recognises the progress made by the UK government but adds that negotiations must continue between the UK and EU for further improvement in volumes as the two regions continue their reset talks. 70% of UK steel exports go to the bloc, making it a crucial market.

The UK’s country specific EU quotas amount to 1 million tonnes, while access to Free Trade Agreement pools and residuals takes the total UK access for tariff-free steel exports to 2.14mt. UK Steel warns these pools are likely to be quickly filled by countries with larger production, with the UK “likely” to lose a significant chunk of the 1.7mt of finished steel it exported to the EU under the previous safeguards.

It blames overproduction on “rampant global subsidisation” which has distorted international market prices, and forced the two regions to significantly restrict import access.

“Unfortunately, broad trade measures have unintended consequences and outdated multilateral trading rules make it difficult to single out bad actors who distort the market for all,” it adds.

UK Steel director-general Gareth Stace says: “Securing wider export access for certain high value steel products will be critical for the long-term viability and profitability of the UK steel sector. The UK and EU are interdependent markets, and we hope both sides will take a reasonable view of each other’s needs as discussions take place over the coming months.”

Meanwhile, in a separate statement, Rajesh Nair, chief executive of Tata Steel UK, says: “While we recognise the UK Government’s efforts in these negotiations, the overall reduction of 60% in guaranteed tariff-free EU quotas, combined with the recent UK steel import measures, is likely to have a significant impact on our UK business.”

“We will need some time to analyse the specific details of the announcement with respect to different product categories, but given the importance of the EU market to British steel producers, fair and workable market access remains critical if we are to achieve a sustainable steel industry here in the UK,” he adds.

Last week, Tata said it was disappointed in the UK’s import quotas and expressed concerns on allowances for metallic coated steels (Category 4), packaging steels (Category 6) and hollow sections (Category 21).

Author: Carrie Bone

kallanish.com

The recently published European Commission quota allocations under the new trade measure regulation are being described as a bombshell by Italian coil buyers and end-users.

Market participants tell Kallanish they did not expect the regulations to be this harsh, and say the move is completely reshaping the supply chain landscape, which will need to be rethought. They add that the new regulation is seen as a huge gift to EU producers.

The architecture of the regulation is notably fragmented, with some countries allocated minimal quotas, such as Australia at 11,000 tonnes for hot rolled coil for the quarter, while Turkey, a long-standing EU supplier, has seen its allocations slashed from 390,000 t/quarter to just 160,000 t/q.

“From Australia you can’t even buy a single vessel. Other countries such as Japan have been heavily penalised too, with 551,000 t/year [for HRC] and anti-dumping duties of 30%. It’s a strong message,” one buyer comments.

Another buyer expects the reduced quotas to be exhausted within hours by large trading companies and European steel processors, making it increasingly difficult to source from Asia.

Another large buyer describes the impact on HRC imports as severe, with an immediate effect on prices. Some Asian producers have responded to the publication of the document by raising HRC offers to €680-700/tonne ($775-798/t) cfr.

A trading company describes the mechanism as particularly complex, with buyers left with little alternative but to purchase in Europe. “There will be very little room to manoeuvre. Prices will increase significantly, but the rest of the supply chain will suffer,” a trader says.

All sources agree the downstream sector will not be able to absorb the expected sharp price increases or maintain volumes. Many end-users, including white goods makers and the automotive sector, have been implementing production stoppages to balance supply and demand.

Another large buyer believes the need to rethink the supply chain will only become a pressing issue in the fourth quarter. HRC stocks remain high, he explains, including his own, with enough material to cover demand until around December.

Any price increases announced this month in Europe for September delivery are unlikely to translate into contracts, as all sources confirm they currently have no need to buy.

In Q4, however, European coil prices are expected to rise to €750/t base delivered, up from the current €700/t base delivered.

Half of the 18.3 million tonne annual quota has been allocated to Free Trade Agreement partners, with the other half accessible for all countries, including FTA partners. FTA partners will therefore retain a higher share of EU market access than the average quota volume reduction of 47%.

A significant number of partners have provisionally agreed to their allocated quotas following negotiations, the Commission says.

However, it adds it will continue engaging with trading partners at the WTO under the ongoing Article XXVIII GATT negotiations. Because the regulation is being adopted by urgency procedure, it is initially valid until end-2026 (see separate article).

Author: Natalia Capra

kallanish.com

The European Commission has published the final country-specific tariff quota allocations implementing the EU’s new steel import regime, which entered into force on 1 July 2026. The measures complete the transition from the previous safeguard system to the new framework established under Regulation (EU) 2026/1384.

In an analysis published by EUROMETAL member Belmetal, the Belgian federation highlights the practical implications of the new quota system for steel distributors and traders. The new regime reduces the annual volume of duty-free steel imports into the European Union to 18.3 million tonnes, with imports exceeding available quotas becoming subject to a 50% duty.

Belmetal notes that the European Commission concluded negotiations with twelve Free Trade Agreement (FTA) partners before finalising the allocation, allowing countries including the United Kingdom, Ukraine, Switzerland, Serbia, North Macedonia, South Korea and Türkiye to retain dedicated access reflecting historical trade flows, security of supply considerations and existing trade commitments.

For steel distributors, the introduction of country-specific quotas, separate allocations for FTA partners, residual quotas for other exporting countries and additional FTA volumes creates a significantly more complex import management system. Importers will need to monitor quota utilisation closely and adapt their sourcing strategies to avoid quota exhaustion and the application of additional duties.

As one of Europe’s major steel distribution and processing hubs, Belgium is expected to be directly affected by the new arrangements, particularly regarding product availability, sourcing decisions, pricing and delivery lead times.

Belmetal concludes that while the new framework provides greater predictability than the previous safeguard mechanism, its successful implementation will depend on careful monitoring of quota utilisation and effective planning by market participants during the coming quarters.

Read Belmetal’s full article here: belmetal.be

European steel market participants expect prices, inventories and production levels are to remain stable in July, Platts European Steel Sentiment Survey data showed July 30.

Price index

Participants’ price expectations were mostly steady for July, with the overall index for July standing at 47.50 points, down from 64.29 in June and now the third month in a row where expectations have fallen.

Trader, stockholder and service center sentiment on price was measured at around 45 points, while producers were neutral on 50 points.

Buyers’ have largely adopted a wait-and-see approach in recent weeks in anticipation of the final country-specific quotas for the new safeguard mechanism, which were published June 30, leaving activity on a subdued level. Market reaction has remained limited, but participants expect the situation to develop over the next few weeks and months when the safeguards effect truly kicks in.

“I think safeguards will have some positive effect on prices, maybe not up like a rocket, but I think by September there will be increases,” one Germany-based distributor said.

Platts, part of S&P Global Energy, assessed domestic hot-rolled coil in Northern Europe at Eur680/mt ex-works Ruhr, steady month over month.

Platts last assessed rebar in Northwest Europe June 24 at Eur675/mt ex-works, also stable across the same time period.

Production index

The overall index for production stood neutral at 50 points, down from the 57.14 points observed in June, suggesting the market feels production will remain steady in July.

Trader, stockholder, and service center sentiment increased over the month from 39.3 points in June to 50 in July. Producer sentiment decreased from 75 points to 50.

The market usually enters a quieter stage in the summer months as participants take holidays and producers conduct maintenance in their plants, as reflected in current sentiment.

Inventory index

The overall index for inventory was measured at 48.33 points, a marginal uptick from the 46.43 points seen in June.

This was made up of around 55 points from traders, service centers and stockholders, and around 42 points from producers.

Sources have continued to note throughout June that inventory levels are high after another month of low activity and weak demand, with the index suggesting this will be the case in July too.

Author: Riley Waters 

spglobal.com

The European Commission has announced that it has set out the detailed country allocation of tariff quotas under the EU’s new steel trade regime. The total annual tariff quota volume of 18.35 million mt will be distributed across 26 steel product categories, replacing the previous safeguard quota administration. Each quota is divided equally into four quarterly volumes.

Half of the import quotas have been allocated exclusively to free trade agreement (FTA) partners, while the remaining half will be available to all exporting countries, including FTA partners.

Three different quota access mechanisms established

The regulation establishes three different quota access mechanisms depending on the exporting country’s status.

Countries receiving a country-specific quota (CSQ) may use their allocated quota immediately. Once exhausted, eligible FTA partners may continue exporting under an additional FTA Quota – CSQ, which is administered on a first-come, first-served basis.

Countries without country-specific quotas may instead access:

• “Other countries” quota: accessible for the exporting countries which are not FTA partners.
• FTA Quota – Other countries quota: accessible for the exporting countries which are FTA partners.

The countries that are able to access these three type of quotas may vary depending on the products.

HRC represents almost one-third of total tariff quota volume

The Commission highlights Category 1A (non-alloy and other alloy hot rolled sheets and strips) represents almost one-third of the total tariff quota volume. Total Category 1A quota volume is now almost 5.2 million mt, compared to 7.7 million mt in the previous quota year (July 1, 2025-June 30, 2026).

For category 1A, Turkey receives the largest annual country-specific quota of 642,295 mt, followed by India (597,274 mt), Japan (551,539 mt), Ukraine (483,529 mt), South Korea (461,830 mt), Vietnam (414,972 mt), Egypt (404,929 mt), Taiwan (278,923 mt) and Serbia (258,095 mt). These countries can use FTA Quota – CSQ once their CSQs are exhausted, as mentioned above.

Looking at the other high-volume quotas, in the new system the quotas allocated for CRC and metallic coated sheets (4A) are at 1.5 million mt and 1.6 million mt, respectively, compared to 3.9 million mt and 2.4 million mt, respectively, in the previous quota year.

Author: SteelOrbis Editorial Team

steelorbis.com

A preliminary comparison of the EU’s new quarterly country-specific tariff-rate quotas with the final quarterly allocations under the previous EU safeguard regime indicates that Türkiye faces lower quotas across most product categories, Kallanish notes.

Cold rolled sheets (category 2) is one of the few product groups where Türkiye’s quarterly quota has increased, rising 38% to 60,153 tonnes, from 43,512t under the previous safeguard system. An even larger increase was recorded for tin mill products (category 6), where the allocation almost doubled, climbing 92% to 14,279t from 7,429t.

The largest reduction was recorded for hot rolled sheets and strips (category 1A), where Türkiye’s quarterly allocation fell by almost 60% to 160,574t from 398,355t previously.

Significant reductions were also introduced for metallic coated sheets (category 4A), down 46% to 63,925t; merchant bars (category 12), down 43% to 60,496t; wire rod (category 16), down 38% to 61,147t; rebar (category 13), down 37% to 59,919t; and hollow sections (category 21), down 29% to 59,850t (see table for more details).

Türkiye has also obtained new product allocations in several categories, including electrical sheets (category 3A), metallic coated sheets (category 4B), quarto plates (category 7), stainless hot rolled sheets and strips (category 8), large welded tubes (category 25A), cold finished bars (category 27) and wire (category 28).

The new regime also allows eligible FTA partners such as Türkiye to compete for the additional FTA quota pool once their country-specific allocation is exhausted.

*Preliminary comparison by Kallanish

Author: Elina Virchenko

kallanish.com

Italian steel producers’ association Federacciai has elected Alessandro Banzato, chairman and chief executive of Acciaierie Venete, as the next president for the 2026-2028 term, Kallanish notes.

The designation will be submitted for approval to the assembly of steel entrepreneurs, which is scheduled for October.

Banzato, who will replace president of Duferco Antonio Gozzi, has held several senior roles within the association and has been vice-president since 2016. He was previously elected president in 2018, a role he held until 2022, Federacciai says in a note.

Author: Natalia Capra

kallanish.com