UK seeks to nationalize British Steel; China urges respect for investor rights
The UK government introduced a bill to nationalize steel companies such as British Steel, owned by the Chinese company Jingye Group, if it is in the public interest, the UK Department for Business and Trade said on May 14.
The bill will have its first reading on May 14, followed by a second reading, expected in the near future, during which MPs will have their first opportunity to debate the bill and give their opinions.
“We strongly welcome the Prime Minister’s announcement to legislate for the nationalisation of British Steel. This provides vital certainty for the workforce, the company’s customers and the wider supply chain at a critical moment,” said Gareth Stace, Director General of UK Steel, a trade association representing the British steel industry. “Steel is a foundation industry and a recognised strategic national asset. Maintaining domestic production capability for British Steel’s products is essential not only for economic growth but also for our national security and resilience,” he added.
The government intervened at British Steel in April 2025 under the Steel Industry (Special Measures) Act to ensure uninterrupted production and avoid the closure of blast furnaces that would have disrupted supply chains and threatened thousands of jobs. Since then, officials have held discussions with British Steel’s owner to find a commercial solution but failed to reach an agreement that would deliver acceptable value for taxpayers, the government said.
“Whatever actions the UK government takes, it should fully consider the substantial investment of the Chinese enterprise in British Steel and its contributions to the UK economy and society, respect the will of the enterprise and market principles, and avoid abuse of administrative coercion, while actively seeking fair and proper solutions acceptable to both sides with the Chinese enterprise,” the spokesperson for China’s Ministry of Commerce said a statement on May 14.
“We hope the UK government will follow the principles of fairness, justice, and non-discrimination, think carefully before acting, make prudent decisions, effectively protect the legitimate rights and interests of Chinese enterprises, and maintain the hard-won positive atmosphere of China-UK economic and trade relations. China will closely monitor the development of the event and take strong measures to safeguard the legitimate rights and interests of Chinese enterprises.”
The UK government spokesperson, when contacted for comment by S&P Global Energy on May 14, said that they “remain committed to respecting the rights of businesses and we would only use the powers in the Bill where the public interest test has been met.”
Platts, part of S&P Global Energy, assessed Steel Hot Rolled Coil (HRC) DDP West Midlands UK GBP/Mt Wk May 7 at GBP695/mt, unchanged week over week.
Author: Annalisa Villa
EU HRC prices soften further despite mills’ attempts to support July offers
European hot rolled coil (HRC) prices have moved down further over the past week across both northern and southern Europe, since weak demand, sufficient stock levels and growing pressure from lower import prices have continued to weigh on the market. While mills have been attempting to maintain relatively firm official offers for July delivery, achievable transaction levels have declined further amid limited buying interest and cautious sentiment ahead of the expected safeguard quota adjustments.
In northern Europe, mills’ official offers have been reported at around €705/mt ex-works for June delivery and approximately €715/mt ex-works for July delivery, compared to target offers of €715-735/mt ex-works reported last week. However, tradable prices have fallen further to €670-690/mt ex-works, versus workable levels of €680-700/mt ex-works heard previously, while some deals are reported to have been concluded at around €680/mt ex-works.
In Italy, official HRC offers from mills have been estimated at €690-705/mt ex-works for June-July delivery, compared to around €705/mt ex-works (€720/mt delivered) reported last week. According to sources, tradable prices in the Italian market have now settled at €670-685/mt ex-works, down from achievable levels of €680-700/mt ex-works heard previously, reflecting continued pressure from subdued consumption and cautious purchasing strategies.
In the import segment, activity has remained relatively limited, though lower-priced offers have continued to put pressure on the local market. Most import offers on DDP basis have been reported at around €640-650/mt DDP southern Europe, down from indicative buyer targets of €660-670/mt DDP mentioned last week. Offers from Indonesia have been voiced at €650-660/mt DDP, according to sources. “We heard rumors about a deal for around 45,000 mt of HRC booked through a trader from Indonesia this week, but the final deal price has not been disclosed so far,” a local trader said.
Meanwhile, indicative offers for import HRC on CFR basis have settled at €590-650/mt levels, down by €10/mt on the lower end of the range week on week. Ex-Turkey HRC offers have been heard at around €610-620/mt CFR, including duty, mainly the same as last week, while offers on DDP basis have settled at around €660/mt, compared to the previous indicative levels equivalent to around €680-685/mt DDP southern Europe.
Meanwhile, ex-India HRC offers have been reported at $690-720/mt CFR, equivalent to approximately €590-615/mt CFR, compared to indicative Indian offers at €600-615/mt CFR reported last week.
Furthermore, according to sources, ex-Algeria HRC offers have settled at $745-750/mt CFR, which translates to around €635-650/mt CFR, with the Algerian supplier reported to have been able to conclude a sale for around 10,000 mt at $730/mt FOB. “The estimated CFR prices is at $750/mt CFR, as freight to southern Europe is around $20-30/mt, making the material still relatively competitive compared to local European prices,” a market insider told SteelOrbis.
“Market sentiment in the EU HRC sector has remained largely negative, with buyers continuing to postpone sizeable purchases amid weak end-user demand and expectations of further price adjustments,” a representative of a mill said.
“We are closely monitoring potential revisions to EU safeguard quotas and broader trade policy developments, with some announcements regarding safeguard measures expected next Monday, May 18,” another source said. However, no major clarification has emerged so far. Until a clearer regulatory direction is provided, and demand shows signs of recovery, most sources expect the market to remain under pressure in the near term.
Author: SteelOrbis Editorial Team
Romanian longs prices rise further, market doubtful of sustainability of uptrend
Romanian longs prices have continued to increase this week, extending the upward trend seen in recent weeks despite demand conditions still falling short of fully supporting the current pace of price growth.
Compared to last week, the market has moved to noticeably higher levels, although trading activity remains largely selective and focused on the short term. Market participants indicate that demand from large construction projects and infrastructure works is still relatively solid, while the residential segment continues to show a weaker performance. At the same time, firmer European pricing, supportive scrap price trends and the ongoing impact of CBAM- and quota-related restrictions on imports have continued to support the bullish market mood. Meanwhile, different pricing approaches among traders have become more visible, with larger traders trying to slow down overly aggressive increases in order to preserve sales volumes, while some medium-sized and smaller traders have continued to push prices upward more aggressively amid firm sentiments.
As a result, rebar prices in the Romanian spot market have increased from €625-640/mt ex-warehouse last week to €650-665/mt ex-warehouse, while wire rod prices have also moved up, from €660-680/mt to €690-700/mt ex-warehouse.
On the production side, Romania’s sole domestic rebar producer, Beltrame Group, has continued to indicate rebar prices at €630-640/mt ex-works. However, market sources report that the producer is currently selling mainly from existing stocks, while some commonly requested rebar dimensions are reported to be unavailable in their stocks. In addition, several sources state that some previously booked lower-priced orders were reportedly cancelled in recent weeks, leaving a number of traders exposed after already committing volumes to downstream customers.
In the import market, trading activity in Romania has remained selective, with buyers still proceeding carefully due to quota- and CBAM-related uncertainties, though regional price increases have continued to affect offer levels. According to reports, Bulgarian rebar offers to Romania have remained stable week on week at €655-670/mt CPT. By contrast, Greek suppliers have moved their offers higher, with rebar now heard at €670-680/mt CFR Romania and wire rod at €660-670/mt CFR.
Meanwhile, on the non-EU side, Egyptian suppliers have kept their June shipment offers unchanged at €550-560/mt CFR for rebar and at €555-570/mt CFR for wire rod. Turkish suppliers have meanwhile raised their rebar offers slightly to €530-545/mt CFR Romania, compared to €525-545/mt CFR heard last week, based on an exchange rate of €1 = $1.17 and estimated freight costs of €25-30/mt.
Author: SteelOrbis Editorial Team
Import steel HRC prices soften in Europe amid cautious demand
The continuing uncertainty connected with the EU’s Carbon Border Adjustment Mechanism (CBAM) and related extra costs, as well as approaching implementation of new tighter safeguard measures on July 1, were some of the key factors weighing on trading activity in the region.
In such conditions, offers were limited.
In Northern Europe, offers of Indian material were reported at $660-670 per tonne CFR, which would be equivalent to €560-570 per tonne CFR.
Turkish material was heard available at €650 ($762) per tonne CFR including anti-dumping duty, which would be equivalent to around €610 per tonne CFR excluding the duty. This price was nevertheless said to be unworkable by the customer.
In such conditions, Fastmarkets’ weekly price assessment for steel hot-rolled coil, import, cfr main port Northern Europe, was €560-600 per tonne on May 13, down from €600-630 per tonne the previous week.
Due to the lack of inputs, Fastmarkets’ weekly price assessment for steel hot-rolled coil, import, cfr main port Southern Europe, was calculated at €550-615 per tonne on May 13, down from €590-645 per tonne.
After the assessment was filed, however, a source reported at Indian offer at $700-720 per tonne CFR, which would be equivalent to €597-614 per tonne CFR, as well as Algerian offers within the range of $735-760 per tonne CFR.
Several sources reported an Indonesia-origin cargo being sold to Italy at €660 per tonne DDP during the week.
Offers from Turkey were heard at €700-720 per tonne DDP to Italy.
And in Spain, offers from different suppliers were heard within the range of €690-750 per tonne DDP.
As a result, Fastmarkets weekly price assessment for steel hot-rolled coil, import, ddp Southern Europe, was €660-700 per tonne on May 13, versus €650-725 per tonne on May 6.
Also due to the lack of inputs, Fastmarkets’ weekly price assessment for steel hot-rolled coil, import, ddp Northern Europe, was €660-695 per tonne on May 13, versus €650-720 per tonne on May 6.
Italian rebar producers push for higher prices despite low buyer appetite; rest of European market remains stable
Market participants reported that demand conditions showed only slight improvement supported by production cuts but remained insufficient to support higher price levels across most regions.
“The market demand is slightly improving, so prices are consolidating,” a buyer source said to Fastmarkets.
Deals continued to be concluded within the established range, with buyers showing resistance to higher price levels.
In the North, tradable levels were estimated in the range of €710-730 ($830-854), unchanged week on week. In the South, transactions took place within the range of €750-770 with only minor tonnages sold at the upper end of the range.
Fastmarkets’ weekly price assessment for steel reinforcing bar (rebar), domestic, exw Italy, was €710-750 per tonne on May 13, unchanged week on week.
In Spain, tradable levels of rebar delivered were reported at €750 per tonne delivered base (16 mm diameter), indicating firm market conditions, which was reflected in the corresponding Fastmarkets assessment, steel reinforcing bar (rebar), domestic, delivered Spain.
In Germany, tradable levels of domestic rebar were reported within the range of €710-730 per tonne, with limited variation in pricing levels across the country.
Thus, Fastmarkets’ weekly price assessment for steel reinforcing bar (rebar), domestic, delivered Northern Europe, was €710-730 per tonne in the week to May 13, unchanged compared with the previous week.
Wire rod prices showed mixed trends in Europe in the reported week.
In Northern Europe, prices edged higher, reflecting slightly improved tradable levels in the region.
Fastmarkets’ weekly price assessment for steel wire rod (mesh quality), domestic, delivered Northern Europe, increased to €705-720 per tonne on May 13, from €700-720 per tonne in the previous week.
In contrast, wire rod prices in Southern Europe remained unchanged, with limited trading activity reported.
Fastmarkets’ weekly price assessment for steel wire rod (mesh quality), domestic, delivered Southern Europe, was €690-720 per tonne on May 13, unchanged week on week.
Nippon Steel assumes USSK direct ownership, eyes growth
Nippon Steel will transition US Steel Kosice (USSK) to direct ownership and rename the unit to Nippon Steel Slovakia effective 1 October. The Japanese steelmaker says it will therefore become more directly involved in enhancing the profitability of the European business and aims to capitalise on policy-driven European domestic mill market share growth, Kallanish notes.
Unlike US Steel, which secured special conditions when acquired by Nippon last year, including retaining its name, brand and headquarters in Pittsburgh, the 4.5 million tonnes/year crude steel capacity Slovakian mill will firmly bear the hallmarks of the Japanese steelmaker.
Europe is a mature market with large demand for high-grade steel, for which Nippon Steel can leverage its “state-of-the-art” product technologies, the Japanese steelmaker notes.
In Central and Eastern Europe, USSK’s main markets, steel demand is expected to increase in the medium to long term due to factors such as the relocation of customer bases to the eastern regions, it adds. The share of steel demand is shifting towards eastern Europe.
“Europe is undergoing a major structural transformation due to trends in decarbonisation and geopolitical uncertainties. It is also a market with a high intra-regional self-sufficiency rate due to factors including tariffs, safeguards, and the Carbon Border Adjustment Mechanism (CBAM). Nippon Steel therefore finds it important to capture the growing demand as an insider,” Nippon Steel says.
“By direct ownership of USSK, Nippon Steel will establish the company as a core hub for its European operations in its global strategy, and become more directly involved in enhancing the profitability and accelerating the growth of its European business,” it adds.
Takahiro Mori, representative director and vice chairman of Nippon Steel, as well as US Steel chairman, says: “I would like to express my sincere respect for USSK’s 60-year history of outstanding operations and development, as well as its strong business performance under US Steel since 2000. Going forward, Nippon Steel will further deploy cutting-edge technology and management resources to USSK to enhance its business foundation, while also advancing mid to long-term investments, including decarbonisation initiatives. Through these efforts, we will continue to contribute to European industry and our customers.”
US Steel president and chief executive Dave Burritt notes Nippon Steel has “values that align closely with the culture and capabilities built at USSK over many years.” He adds: “This transition also sharpens US Steel’s focus on our US-based operations and our historic growth strategy in America.”
Nippon Steel will also take direct ownership of Sweden-headquartered special steelmaker Ovako once Nippon completes in April 2027 its merger by absorption of subsidiary Sanyo Special Steel, which owns Ovako.
Author: Adam Smith
Salzgitter expects delayed safeguard replacement-driven demand growth
EU measures against steel imports will not boost domestic demand much before the third quarter, says the chief financial officer of Salzgitter AG, Birgit Potrafki.
“The impact from the safeguard measures as of 1 July will not come right away,” she said during a conference call this week monitored by Kallanish. Pointing at existing inventories being at sufficient levels, she expects that “we will see the improvement at the end of the year, rather than mid-year”. There has been some increase of inventory amid higher imports frontloaded before the introduction of CBAM and the new trade measure, she added.
Her outlook for steel prices is similarly modest. She expressed disappointment that the surge in European hot-rolled coil values got stuck at around €700-710/tonne ($822-834), “and even slightly below €700”.
The company is now in negotiations with customers on long-term contracts. Potrafki gave no indication of the potential rate of increases, also because of the widely differing term periods of contracts.
However, she did say negotiations have been factored into the company’s guidance, which has been brought up since the publication of the 2025 annual results two months ago. At that time, the company predicted an Ebidta of €500-600 million for full-year 2026. On the grounds of satisfactory sales in the first fiscal quarter, this range has been lifted to €625-725m.
On the crisis in the Middle East, she noted that events have had a negative effect on the company’s international business, but are yet to slow orders from domestic customers.
Author: Christian Koehl
EC proposes new ETS methodology to support industrial decarbonization
European Commission has announced that it has proposed updated benchmark values under the European Union Emissions Trading System (EU ETS) for the 2026-2030 period.
The proposal is expected to be formally adopted through an implementing act by the end of June following a four-week public consultation and review by member states within the Climate Change Committee.
Proposal aimed at supporting competitiveness and decarbonization
According to the Commission, the revised methodology is intended to support both industrial competitiveness and decarbonization while reinforcing stability and predictability within the EU carbon market. The Commission also emphasized that the revised framework should be implemented as early as possible to support industries most affected by the transition.
The Commission confirmed that the broader review of the EU ETS planned for July 2026 will assess whether the system remains suitable for supporting Europe’s industrial transition. The review is expected to examine the effectiveness of the ETS in balancing climate objectives with industrial competitiveness.
Indirect electricity emissions remain included
Under the updated methodology, indirect emissions linked to electricity consumption will continue to be included across 14 product benchmarks.
The Commission stated that this adjustment is intended to support industrial electrification efforts and results in higher benchmark values. According to the proposal, the financial impact of this measure is estimated at around €4 billion during the 2026-2030 period.
Free allocation system remains central
The benchmark update plays a key role in determining the volume of free emissions allowances allocated to industrial producers. The Commission stated that the proposed benchmarks would allow companies to continue receiving free allocations covering approximately 75 percent of emissions on average.
The revised benchmark values are based on greenhouse gas efficiency data submitted by installations for 2021 and 2022. The calculation methodology takes into account the performance of the cleanest 10 percent of installations in each industrial sector. Under the EU ETS framework, companies whose emissions exceed benchmark levels must purchase additional allowances, while more efficient installations benefit from higher free allocation levels.
Steel sector benchmark definitions revised
One of the major revisions concerns product definitions. The sintered ore benchmark has been expanded to include alternative agglomerated iron ore products, while hydrogen produced through water electrolysis has been included within the hydrogen and ammonia benchmark scope.
A significant steel-sector adjustment relates to the hot metal benchmark. Delegated Regulation (EU) 2024/873 expanded the hot metal benchmark definition to include steel production using direct reduction technology. However, the Commission clarified that direct-reduction-based steel production covered under the hot metal benchmark will not be included when calculating average greenhouse gas efficiency for determining revised benchmark values for 2026-2030.
As part of the upcoming ETS review, the Commission also plans to introduce sector-specific fallback benchmarks in response to industry requests. These benchmarks would be developed using dedicated methodologies tailored to individual industrial sectors.
Author: SteelOrbis Editorial Team
ArcelorMittal Belgium restarts Galva 5 galvanizing line after four-year shutdown
ArcelorMittal Belgium has announced that it has officially restarted its Galva 5 hot dip galvanizing line in Flémalle after four years of inactivity. The reopening strengthens the company’s industrial footprint in Europe and expands its production capabilities for metallic-coated steel products in thicker gauges.
Major modernization program completed
The Galva 5 line was acquired by ArcelorMittal in July 2025, after which the company launched an extensive refurbishment and modernization project.
The upgrades included roof renovations, maintenance work on coil feeding and uncoiling systems, restoration of the pickling section and zinc bath, and improvements to the site’s digital infrastructure.
Expanded coated steel production capabilities
With the restart of Galva 5, ArcelorMittal Belgium regains domestic production capacity for metallic-coated steel in thicker formats. The facility is integrated into the company’s broader European coated steel network and processes hot rolled coils supplied from ArcelorMittal’s Ghent plant.
The galvanized steel products produced at the Flémalle site are intended for several industrial applications, including road safety infrastructure, HVAC systems, industrial equipment, and automotive components. According to the company, the facility’s location in central Europe will improve proximity to customers and support shorter lead times and greater supply flexibility.
Advanced technical specifications
Technically, the Galva 5 line is capable of processing hot rolled substrates up to 6.35 mm thick and 1,880 mm wide. The facility also includes in-line pickling technology, enabling shorter production routes and compatibility with high-strength steels and various metallic coatings.
ArcelorMittal Belgium stated that the restart of the line also supports the company’s lower-carbon steel solutions strategy.
Author: SteelOrbis Editorial Team
UK will take action to safeguard steel: King Charles
The King’s Speech on Wednesday confirmed that the UK government will continue to explore ways to nationalise British Steel, Kallanish learns.
“The United Kingdom’s economic security depends upon world class infrastructure,” King Charles said. “My ministers will continue to take all action necessary to safeguard the domestic production of steel,” he added.
This comes after UK Prime Minister Keir Starmer announced earlier in the week, ahead of the King’s Speech, that the government would introduce legislation that will give it powers to bring the steelworks into public ownership, subject to a public interest test.
An agreement could not be reached with the current owners, Jingye, Starmer added. The move has been broadly welcomed by industry associations and workers’ unions.
The time frame for the proposed legislation is currently unknown.
Cara Haffey, leader of industry for industrials and services at PwC UK, says: “Measures to safeguard domestic steel production and invest in major infrastructure reflect the growing recognition of industrial sectors as strategic national assets, underpinning supply chain resilience and competitiveness.”
Author: Carrie Bone