Category: Latest Updates

The business activity in the European HRC market remains mainly focused on the domestic segment where trade has been at moderate levels.

In Italy some lower bids have been seen for August production, in line with the talk in the market regarding ArcelorMittal seeking to increase its prices across Europe. “I don’t see them [local mills] increasing production, so, once supply is down, they’ll push for the best they can get,” a source told SteelOrbis. The EU’s interest in imports has remained low due to the risks connected to the quota uncertainty and CBAM fees. “It is really quiet these days. Traders find it very simple – not offering anything right now because there is no market, so no need to waste time and efforts. Simply better to wait for the new tariffs,” another source opined.

In the southern part of the EU, particularly in Italy, local mills’ HRC offers have been mainly reported at €680-690/mt and up to €700/mt ex-works with the workable levels seen at €670-680/mt ex-works. However, some of the sources have reported some bids for August production at €660-670/mt delivered, which are considered speculative now. In Spain, the official price levels have been reported at up to €720-730/mt ex-works but discounts are considered quite possible.

In the northern part of Europe, official price levels from the mills have been reported at €690-704/mt ex-works, while the workable levels are estimated at €680-700/mt ex-works still, in line with last week.

Some of the sources report ArcelorMittal has started voicing the intention to increase prices by €20/mt in July and €50/mt in August. “The question is more the price levels they have in mind; the increase itself is a regular issue. Everyone would like to increase since we have been dropping [prices] for a month now,” a source told SteelOrbis. “Once old stock is gone, replacement cost is going to increase significantly. And with very little import offers around, EU mills should increase in August at the latest,” another source said.

Import business activity has been quite slack lately as not many are willing to take the risks connected with the unclear quotas. The latest HRC offers from Algeria stood at €720-730/mt DDP, down €10/mt on the lower end over the past week, while Turkey has maintained the level of €690/mt DDP. Most of the DDP HRC offers from Asia have remained at high levels with sideways movements – €730/mt from South Korea, €720/mt from Taiwan and €750/mt from Taiwan. The indications from a Vietnamese mill remained the lowest at €690/mt DDP.

In the CFR import HRC segment in Europe, the offers from Turkey have firmed up to €605-615/mt CFR, €5/mt on the lower end over the past week. The indications from India have been generally stable at $680-685/mt (€585-590/mt) CFR, with no takers seen. According to some sources, a deal at $650/mt CFR for a decent volume has been concluded lately to Spain.

The European longs market has remained mostly stable this week, due to the absence of many market players because of holidays in several European countries. Republic Day (June 2) in Italy has pushed many players out of the market for a long weekend, and Corpus Christi (June 4) in some central European countries such as Germany and Poland has had a similar effect at the end of the current week.

The general market sentiment is stable, although the first signs of price weakness are emerging. High supply – especially of rebar – and weak demand, combined with uncertainties about the safeguards that will come into force within less than one month, are leading market players to buy less, avoid stockpiling and move with extreme caution.

Overall, however, product prices have remained stable this week, partly because working days were fewer.

In the Italian domestic market, the sporadic rebar purchase deals have been closed at unchanged levels of €440-450/mt ex-works base (€700-710/mt ex-works including regular extras), although requests from mills officially remain at €460/mt ex-works base (€720/mt ex-works including regular extras). To maintain these levels, several producers in Italy are implementing some production slowdowns, but demand from the finished steel market remains very low.

“There are few requests, and customers are trying to get lower prices,” a source at an Italian mill said, referring to both domestic and export sales. Regarding the latter, official offers of rebar from Italy are still being reported at €630/mt FOB, but, according to a source, “This is only a nominal level. In Bulgaria and Romania, offers at €600-605/mt FOB have arrived from Italy.” According to another source, however, deals for other destinations have been closed at €620-625/mt FOB.

As for wire rod, the situation seems to be slightly more stable, with offers in Italy heard at €695-710/mt for drawing quality and €685-690/mt for mesh quality. In central Eastern European markets and in Germany this same quality has been reported at €685-700/mt, while the prices of drawing quality have been reported respectively at €690-710/mt and €685-700/mt in the aforementioned countries. In Spain, on the other hand, price levels are much higher: €710-725/mt for drawing quality and €690-700/mt for mesh quality. It should be noted, however, that these are hypothetical levels, which may change over the month. All price ranges indicated are delivered to customer.

In the export market in Greece, rebar offers have been reported at higher levels compared to the beginning of May at €630-640/mt FOB, with the upper end of the range up by €10/mt compared to previously reported data. On the other hand, wire rod offers have decreased at €640-650/mt FOB compared to around €660/mt FOB at the beginning of May.

Finally, in import markets in Europe, offers came mainly from Turkey and Egypt, with Algeria remaining absent from export markets due to a higher focus on domestic sales. With a stable euro-dollar exchange rate at 1.16, offers from both countries have recorded slight declines: €555-560/mt CFR for Turkish rebar (down by €5-10/mt compared to before Eid Al-Adha, May 26-30) and €560-570/mt CFR for wire rod (also down by €10/mt on the lower end of the range over the same period). As for offers from Egypt, rebar has been reported at €550-560/mt CFR, down by €10/mt compared to the end of May, and wire rod at around €570/mt CFR, down slightly by €5-10/mt compared to the same period.

Transaction prices for stainless steel cold-rolled sheet in Northern Europe have moved upward in June, driven by reduced import availability and strong domestic mill pricing power, trade sources told Fastmarkets during the week to Friday June 5.

Fastmarkets’ monthly price assessment for stainless steel cold-rolled sheet, 2mm, grade 304 transaction domestic, delivered North Europe, was €2,800-2,850 ($3,229-3,287) per tonne on Friday, up from €2,700-2,775 per tonne on May 1.

The price increase was in line with the sharp rise in June alloy surcharges announced by the major European mills.

Stainless steel alloy surcharges in Europe reflected fluctuations in key raw material costs, primarily driven by nickel price movements. Fastmarkets’ monthly price assessment for stainless steel cold-rolled sheet, 2mm, grade 304 alloy surcharge, domestic Europe, was €2,280-2,365 per tonne on June 5, up from €2,156-2,247 per tonne on May 1.

Market participants said that while some smaller mills were still taking July orders, all large producers have effectively closed their order books, pushing lead times firmly into late summer.

“Delivery times for major European mills are expected at the end August and September,” a European producer told Fastmarkets, adding that these extended lead times were expected to keep prices stable in the near term.

A distributor said that “flat demand could challenge further price increases after July.”

“We would not be surprised if we see a roll-over of prices from July to August, also due to the coming summer vacation season,” the source said. “Margins in the distributor business are under severe pressure and do not follow the price increases from the mills, so we are walking a thin line when it comes to gaining profit.”

The corresponding price for grade 316 rose in tandem with grade 304 over the month, keeping the industry-standard price differential between the two grades stable at €1,400-1,500 per tonne. Market participants confirmed that this premium was unchanged from the previous month, reflecting steady molybdenum costs, while the flat product price increases across both grades continued to be driven by the broader upward momentum in surcharges.

Fastmarkets’ monthly price assessment for stainless steel cold-rolled sheet, 2mm, grade 316, transaction domestic, delivered North Europe, was €4,200-4,350 per tonne on June 5, rising from €4,100-4,275 per tonne on May 1.

Domestic mill strength has been driven by the implementation of the Carbon Border Adjustment Mechanism (CBAM) and tightening safeguard regimes, which caused cold-rolled stainless import penetration into the EU to tumble to around 12-15% early in 2026, from roughly 28% previously.

In early May, a market source told Fastmarkets that some large producers could seek €3,000 per tonne for August and September.

“Steel mills expect further increases because the safeguard measures are expected to slow imports of coils and sheet from Asia,” a second distributor told Fastmarkets. “But the big issue today is final demand, which has decreased by 20% compared with the first quarter of 2026.”

European green flat steel spot trading remained thin during the week to Thursday June 4, although some sellers were able to secure higher premiums in isolated transactions, sources told Fastmarkets.

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.

Suppliers continued to seek premiums largely in the range of €150-200 ($211-234) per tonne, whereas customers’ price ideas were said to vary greatly depending on whether it is a spot market purchase or offtake agreement.

Overall, the spot market remained quiet, with most buyers either unwilling to pay a premium at all or providing indications below mills’ targets.

Nevertheless, one of the sellers said that he managed to achieve as high as €170-200 per tonne in recent sales.

Fastmarkets’ weekly assessment of the green steel domestic, flat-rolled, differential to HRC index, exw Northern Europe widened to €100-200 per tonne on July 4 from €100-170 per tonne on May 28.

Another producer source confirmed the split between spot and long-term demand, explaining that currently consumers such as the automotive or white goods industries do not need much green steel as the models that they produce now are still in accordance with old standards – on top of that, they reduce their carbon footprint by reducing their emissions under Scope 1 and 2.

The closer production is to 2030, the stricter the requirements will be for the reduction of carbon footprint, and this is when new models requiring green steel will be produced.

A trading source added that current demand for green steel is extremely low as the market is facing other challenges like uncertainties connected with the import segment and economic instability triggered by the conflict in the Middle East.

According to statistics released by the French Ministry of Economy, Finance and Industry, France’s trade in basic steel products and ferroalloys recorded a slight decline in value during the first quarter of 2026, with both imports and exports falling compared to the same period last year.

In the January–March period, France’s imports of basic steel products and ferroalloys totaled €2.31 billion, down 2.1 percent year on year. Among the main product categories, imports of steel pipes and tubes increased by 1.5 percent to €520.2 million, while cold rolled steel bars rose by 2.0 percent to €135.46 million. By contrast, imports of cold rolled steel strip declined by 7.3 percent to €162.36 million, cold drawn wire fell by 6.9 percent to €118.8 million, and metal structures and parts registered the sharpest decrease, dropping by 11.9 percent to €600.25 million.

On the export side, France’s basic steel product and ferroalloy exports amounted to €2.37 billion in the first quarter, representing a year-on-year decrease of 1.9 percent. Exports of steel pipes and tubes fell by 7.3 percent to €286.78 million, while shipments of metal structures and parts edged down by 0.9 percent to €220.34 million. However, exports of cold rolled steel bars increased by 7.7 percent to €120.8 million, cold rolled steel strip rose by 9.5 percent to €166.93 million, and cold drawn wire advanced by 4.4 percent to €80.52 million.

Despite the overall decline in trade values, France maintained a slight trade surplus in basic steel products and ferroalloys during the quarter, with exports exceeding imports by approximately €60 million.

Author: SteelOrbis Editorial Team

steelorbis.com

Italian steel trade association Assofermet is calling for a significant simplification of European bureaucracy and urges the EU to immediately accompany CBAM, melt and pour rules and new safeguard regulations, with tools to preserve the competitiveness and capacity of steel processing and end-user companies, Kallanish notes.

The manufacturing sector needs guarantees of adequate supply options and, above all, a serious impact assessment of the quotas, duties and CBAM across the entire industrial supply chain, the association says in a note.

It adds that in the current context of severe instability and persistent tensions, the fragile competitiveness of EU manufacturing cannot be sacrificed in the name of a protection strategy designed solely for the upstream segment of the industry.

“The core problem lies in the overall balance of the measures adopted by the EU. A policy that protects only upstream production, without providing equivalent support for companies that process and use that steel, risks generating distortive and disincentivising effects,” the note states.

Downstream companies, including processors, end-users, distributors and traders, as well as the metalworking sector, are facing a disproportionate rise in raw material costs, a progressive reduction in sourcing options, and a growing administrative and bureaucratic workload that is increasingly difficult to understand.

“If the EU loses market share in global manufacturing markets and if the continent’s competitiveness is further squeezed by an accumulation of massive regulatory constraints, steel producers themselves will inevitably suffer in the medium to long term, as orders from their own customers inexorably decline, resulting in yet another reduction in steel consumption and demand,” Assofermet warns.

Concerns have been growing in the flat service centre segment over the ability of European manufacturers to absorb the rising prices.

Last year, the association asked the European Commission to rethink the current CBAM framework, warning that the mechanism risks generating severe disruption for EU industry.

In a letter addressed to commission vice-president for prosperity and industrial strategy Stéphane Séjourné and trade and economic security commissioner Maroš Šefčovič, the association requested a temporary exemption from CBAM certificate purchases for all steel imports cleared from 1 January 2026 until five months after the publication of the final Benchmark and Default Value parameters.

Author: Natalia Capra

kallanish.com

Relatively stable business environment in global longs market, regional differences more pronounced than ever

The overall business environment in the global long steel products market remains relatively stable. However, regional differences have become more pronounced than ever. Protectionist measures in the United States, combined with the implementation of CBAM in Europe and the upcoming reduction of EU import quotas, are reshaping trade patterns and market dynamics.

Ongoing conflicts continue to create uncertainty and raise costs

At the same time, the ongoing conflicts in Ukraine and the Middle East continue to create uncertainty, disrupt trade flows and influence supply-demand balances across multiple regions. Higher oil and natural gas prices have increased transportation and production costs, while steel availability from Gulf region suppliers has become extremely limited. Marine insurance costs for cargoes have also risen due to increased geopolitical risks. Expectations that these disruptions will be short-lived have largely disappeared. As a result, many distributors and stockists are holding onto inventories amid concerns about future supply availability and stock replacement costs. Consequently, the market remains highly fragmented, with conditions varying considerably depending on geography.

EU market sees last-minute import buying ahead of new quota system on July 1

In the European Union and in the United Kingdom, the market is now starting to search for a new equilibrium because of the changes in the import regime from July 1. During the past few weeks, some last-minute import buying has been taking place, as buyers and traders try to position themselves before the new quota system enters into effect. After this, market players will have to adjust their strategy to the supply which is actually available in the market. There will still be imports, of course, and there will still be competition, but buyers will have to build their strategies around actual market availability, not around the cheapest theoretical import offer.

Scrap prices remain strong despite weak demand

There is no demand to support the continuing strength of scrap prices, but it seems that prices will stay where they were before the Eid holiday or they may come down by a few dollars to motivate Turkish buyers to resume buying. Deep sea scrap prices for Turkey remain some way above US$400/mt CFR despite weak Turkish rebar sales, while the strong scrap prices provide support for finished product prices. Meanwhile, Turkish mills do not expect much long product demand from the EU because of the new quotas to be introduced shortly in the region. Regional differences will certainly create different results for different regions and producers, especially for those who source scrap from the US and the EU and need to export their products.

Turkey’s production costs may increase, political situation to impact investment

Turkish mills were enjoying cheap energy costs due to the rainfall during the winter season. This will most probably end when temperatures start rising and the country starts using cooling systems. With the political turmoil in the country, investments will slow down, which will also be another factor causing demand for long steel to slacken.

Iran’s demand for semis contributes to higher long steel costs

Iran’s demand for semis is another factor contributing to increased costs of long products. In this context, Chinese exports of slabs and billets increased to around 900,000 mt in the January-April period this year.

Long steel market in Germany remains very weak

The market in Germany is still very weak. After the shockwave of higher energy prices (the impact of the Iran war) and price increases for all steel products and for logistics, many projects were put on hold. Consequently, cut and bend prices did not move up but are on the way back down. Benders are desperately looking for orders at somehow manageable prices. German and Polish mills have had to adjust prices down as well, otherwise benders do not buy. So, there has been a drop of around €30/mt in prices despite the seasonal improvement which reflects the level of investment in Germany right now. Better prices for benders from imports are practically not available anymore. Reduced quotas, CBAM and high ocean freight rates make business very difficult. New building permits went down by 10-15 percent and industrial projects by 20-30 percent. There is not even any input from the public sector.

Mixed bag of positive and negative factors in US market

In the United States, inflation remains a concern, and expectations for interest rate cuts have largely been pushed back, with higher rates now expected to continue into 2027. This has negatively impacted housing and construction activity, keeping demand relatively subdued. Meanwhile, steel imports remain restricted by the 50 percent Section 232 tariffs, higher freight costs and logistical uncertainties. Reduced import competition continues to support a gradual increase in domestic steel prices despite overall moderate demand. On the other hand, domestic steel prices are moving closer to import parity, which may improve future import opportunities. In addition, inventories remain relatively low, and continued investments in AI infrastructure, energy and industrial projects are providing some support for steel demand. The primary area of growth remains AI infrastructure and data center investments, although this business is largely supplied directly by domestic mills and these big projects are for consumption of reinforcing steel 12-18 months from now. However, these positives are still overshadowed by geopolitical uncertainty, high interest rates and weak construction activity.

Some positive developments in terms of investments

One of the key positives in the marketplace is the substantial level of investment being directed toward infrastructure projects, energy-related developments and data centers, all of which generate significant demand for reinforcing steel products. In addition, many governments in developed economies are increasingly focused on addressing housing affordability challenges. Policies aimed at expanding residential construction could support additional demand for long steel products in the medium term. Another positive factor for certain markets is the implementation of measures designed to protect domestic industries from unfairly priced imports. While these measures support local producers, they also reduce market access opportunities for exporting countries, highlighting the differing impacts across regions. There are areas like the Balkan and Baltic regions where demand is really great and investment in infrastructure is huge.

China’s crude steel output decreases, its iron ore imports increase

China’s crude steel production decreased by 4.1 percent in January-April, but its iron ore imports increased by eight percent to 418 million mt in the same period, and port stocks are close to 160 million mt. This is a very strange situation: steel production is characterized by weakness, but iron ore imports remain strong.

Divergence between open and protected markets

Competition remains extremely intense in international markets that are open to imports. Excess production capacity in several regions continues to put pressure on prices and margins. In contrast, markets that benefit from trade protection measures or restricted import access generally experience more balanced competitive conditions.

Current market status stable and challenging, outlook varies according to region

Under these circumstances, the current status of the market can be described as stable and challenging. While demand remains generally subdued in many regions, market participants have largely adapted to current conditions and no major short-term disruptions are anticipated. The outlook, on the other hand, varies significantly by region. In Europe and the United States, market sentiment is relatively decent, supported by infrastructure spending and protective trade measures. In many other parts of the world, however, the outlook remains difficult to predict.

Supply side will need to be monitored if Middle East crisis is resolved

Even if geopolitical tensions in the Middle East ease, the resulting increase in availability of supply could place additional pressure on already oversupplied open-trade markets. Furthermore, the current interest rate environment continues to weigh on construction activity and investment decisions in several regions.

irepas.com

The 50% tariff that the US imposed on steel and aluminum imports in June 2025 has scrambled trade flows, driven up prices and inspired some new investment. This is part one of a three-part series examining the effects one year later.

When US President Donald Trump imposed a 50% tariff on imports of steel and aluminum in June 2025, officials said the new duties would revitalize the nation’s industrial base by leveling the playing field for domestic producers that were undercut by inexpensive imports.

One year later, US steel producers have reaped the benefits of the tariff. Steel imports have plummeted, allowing domestic prices to outpace global prices. US production and capacity utilization have gradually increased as imports declined, despite largely unchanged demand.

But the promised manufacturing boom has yet to materialize for steel consumers. The tariffs have driven up input costs for some downstream sectors, cutting into their profit margins.

“Production is rising, and the industry is in a stronger position than 18 months ago,” Tiago Vespoli, a senior research analyst at consulting firm Wood Mackenzie, told Platts. “But the output response has been gradual, reflecting the realities of building new capacity, and the broader manufacturing sector has yet to show a jobs uplift that can be tied directly to the steel tariff.”

Higher costs for steel end-users

The US Bureau of Labor Statistics’ producer price index for iron and steel increased 10.4% between April 2025 and April 2026, and the steel mill products index rose 13.3%. Both are major inputs for the construction sector and automotive sectors, which accounted for 46% of net steel shipments in 2025, according to the US Geological Survey.

Until Trump’s tariff took effect, the industry’s input costs had remained relatively flat since 2023, according to Zack Fritz, an economist for the trade group Associated Builders and Contractors.

“Higher input prices mean higher construction costs, and that means fewer projects pencil out and proceed,” Fritz told Platts. “I think that’s been a contributor to the fact that nonresidential construction spending has been in a state of decline for some time now.”

Nonresidential construction spending in the US peaked at $791 billion in December 2023, according to Census Bureau data. In March, spending was reported to be $729.3 billion, down 2.1% from March 2025.

The decline is largely due to the end of the large projects incentivized by a pair of Biden-era laws, the bipartisan infrastructure act and the CHIPS and Science Act, which pumped money into the construction sector. But higher input costs have also been a factor.

The increased input costs have left some downstream sectors, including automotive and metals fabrication, to negotiate within their supply chains as they face tighter margins.

Platts assessed the TSI US EXW Indiana price for hot rolled coils of steel at $1,201.50/metric ton on May 26, up 31% since Trump imposed the tariff on steel and 58% since Trump took office.

The US price for hot rolled coil is more than double the Southeast Asia price of $571/mt, assessed May 26.

“The cost recovery within the supply chain to account for the tariffs is something that many suppliers are very focused on,” Ann Marie Uetz, an automotive supply chain attorney with Foley & Lardner, told Platts. “It’s really negotiations with their customers, all the way up to the [original equipment manufacturers], for that cost recovery for tariffs.”

A series of charts shows US steel imports falling and prices rising after a 50% tariff was imposed in June 2025.

Limited capex from end-users

The domestic steel industry is in the middle of a $50 billion capital spending wave, Vespoli said, adding that Nucor Corp. alone has several projects ramping up, including a new melt shop in Arizona, a rebar micro mill in North Carolina, and galvanizing lines at its Indiana and South Carolina sites.

End-users have been slower to make new commitments. The most significant announcement since the tariffs took effect is Toyota Motor’s $2 billion investment in a new vehicle assembly line at its Texas manufacturing complex.

Among heavy machinery manufacturers, Caterpillar is planning a $725 million expansion of an engine production facility in Indiana and Volvo Construction Equipment is increasing excavator production in Pennsylvania. However, the machinery and equipment sector accounted for only 3% of steel consumption in 2024, according to the US Geological Survey.

Additional policies beyond the 50% tariff will be needed to spur growth in downstream steel sectors, American Iron and Steel Institute President Kevin Dempsey told Platts.

Environmental regulations and permitting policies “are going to be really important for a lot of downstream industries,” Dempsey said. “And, you know, nothing happens, especially in government, as quickly as you would like, but I think things are moving in the right direction.”

Job numbers unchanged

Employment for the general US manufacturing sector has remained mostly flat at 12.6 million workers through early 2026, while the ISM manufacturing employment index suggests that many subsectors are contracting rather than expanding, according to Vespoli.

The steel industry has added a few hundred new jobs in the past year as steel producers increased capacity, but employment in iron and steel mills and ferroalloy manufacturing has remained largely unchanged.

The sector employed 84,300 workers in March, slightly down from 84,500 workers in March 2025, according to the most recent data available from the Bureau of Labor Statistics. Total employees reached 85,100 in January before marginally falling.

However, the tariff’s impact on domestic manufacturing is not primarily in employment numbers, but rather in input costs, sourcing decisions and trade flows, according to Marc Gilbert, global lead at Boston Consulting Group’s Center for Geopolitics.

And a recent revision to the tariffs framework has imposed similar duties on steel-derivative products, including machinery and automotive components.

“For manufacturers exposed to tariffed materials, the questions of whether to shift sourcing, redesign products or relocate manufacturing capacity to the US require a long-term view and confidence on the return in invested capital,” Gilbert said.

Author: Sarah Elbeshbishi 

spglobal.com

Tata Steel said in a statement on June 4 that a fire broke out on the evening of June 3 in one of its processing lines at the Port Talbot steelworks.

The company said the incident is not related to the recent demolition of its empty, redundant gas holder.

Mid and West Wales Fire Service arrived at the site at 8:00 pm local time to deal with the fire, and Tata said all personnel had been accounted for and evacuated from the area safely. In an update, as of the evening of June 4, the steelmaker said the fire service was still on the site to retain control of the area of the cold mill where the fire occurred.

A company spokesperson said the fire was restricted to a confined area and that despite a pause in the unaffected hot-rolling mill, production was expected to restart promptly.

Tata said in a statement that it was still unable to assess the cause of the fire and its potential impact on operations. The company added that it was “investigating a number of options” to minimize the impact on customers.

The incident comes just weeks before the UK’s new steel safeguard measures come into force, which are set to tighten imports in an attempt to boost domestic production.

“The fire doesn’t look great,” a trader said. “It is seriously bad timing with these quota announcements coming up.”

Platts, part of S&P Global Energy, assessed hot-rolled coil in the UK at GBP705/metric ton DDP West Midlands, up GBP5/mt week over week, and up GBP190/mt since the start of the year.

Photo Credit: Mid and West Wales Fire and Rescue Service

Author: Riley Waters 

spglobal.com