Italy and France to back overhaul of CBAM to boost EU competitiveness
Italy and France underscored the need for the European Commission to reassess the EU’s Carbon Border Adjustment Mechanism (CBAM) to bolster the competitiveness of European industries amid the ongoing challenges of decarbonization.
Italy’s Minister of Enterprises and Made in Italy, Adolfo Urso, met with France’s Minister of Industry and Energy, Marc Ferracci, on Feb. 11, where they both called for the inclusion of CBAM as a key agenda item at the forthcoming EU Competitiveness Council meeting on March 6.
“We cannot allow strategic European sectors, such as steel and chemicals, which are essential for our industrial autonomy and for the economic stability of the continent, to be penalized by a system that does not take into account the real conditions of global competitiveness,” said Urso in a statement.
This comes as there has been a growing call among policymakers, politicians, and industry leaders to simplify the EU’s carbon border tax as the Commission tries to balance industrial growth with environmental goals.
“The geopolitical context requires Europe not to depend on external actors for essential materials and technologies. It is therefore crucial to correct the CBAM so that it is a truly effective tool, capable of protecting European industrial production and at the same time encouraging a sustainable transition in practice, not just in principle,” added Urso.
Streamlining CBAM
On Feb. 6, EU Commissioner for Climate, Net-Zero, and Clean Growth, Wopke Hoekstra, admitted that his team is considering excluding around 80% of EU companies from the Carbon Border Adjustment Mechanism to reduce their administrative and bureaucratic workload.
Hoekstra stated that almost 97% of all emissions covered by CBAM are produced by only 20% of companies, highlighting the need for some flexibility in implementing this carbon border levy.
CBAM is a carbon tax on emission-intensive commodities exported to the EU, currently covering the cement, iron and steel, aluminum, fertilizer, electricity, and hydrogen sectors. The levy is designed to reflect the difference between EU carbon prices and carbon costs in exporting countries.
With the definitive phase of the EU’s CBAM set to kick in on Jan. 1, 2026, importers of carbon-intensive goods will face levies based on the emissions associated with their imports.
Under the transitional phase of CBAM, which started on Oct. 31, 2023, traders must only report on emissions embedded in their imports without paying any financial adjustment. However, this mechanism will be phased in from 2026 to 2034, in line with the phasing out of free allowances in the EU ETS.
The decline in industrial and manufacturing output contributed to a reduction in the European carbon price last year. However, prices have rebounded significantly in early 2025. The suspension of Russian gas transit through Ukraine has led to higher coal power generation, pushing up demand for carbon permits.
EU Allowances averaged Eur66/mtCO2e ($68.13/mtCO2e) in 2024, down more than 20% year over year, S&P Global Commodity Insights data showed.
Platts, part of Commodity Insights, assessed EUAs for December 2025 delivery at Eur82.41/mtCO2e on Feb. 11.
FFB: Recession hits French construction, outlook remains gloomy
The crisis in the French construction industry worsened in 2024, especially in the private residential sector, which was undermined by reduced new construction and the non-residential sector, French construction federation Fédération Française du Bâtiment (FFB) says in a report obtained by Kallanish.
“After an erosion of activity in 2023 (-0.9%), the construction sector entered full recession in 2024,” FFB comments. The industry, encompassing all segments, experienced a 6.6% decrease in volume last year. The number of building site openings for new construction saw a significant decline of 14.2%, following a substantial decrease of 24.9% in 2023, resulting in a historic low of 253,000 units. “You have to go back to 1954 to find such a level!” FFB exclaims.
The construction of new individual houses experienced a significant decline by 23.7%, resulting in fewer than 100,000 units. Overall, new housing activity plunged 21.9% in 2024. The production of new non-residential buildings also endured a year-on-year decline of 7.4%, with all segments reflecting a notable decrease, except for public buildings, which remained stable.
The outlook for 2025 appears gloomy, with a projected contraction of 5.6% in volume, primarily driven by challenges in new construction activities. Expected new housing activity is projected to decline by 14.2% in 2025, leading to a new low in construction site openings at 239,000 units.
Despite an anticipated macro-financial climate improvement, FFB predicts a 15% decline in individual home sales and a 30% decline in developer sales to individuals. Activity in new non-residential properties is also expected to drop by 15% in 2025, influenced by general uncertainty and unappealing credit conditions.
The French long steel market’s performance remains unimpressive as the construction industry continues to perform poorly. French long steel prices have remained stable since the beginning of January; however, there is a noticeable absence of large-volume sales, and the upward price attempts from some mills are lacking momentum.
A source within a purchasing group indicates the outlook for the first half remains pessimistic. He suggests ongoing financial difficulties faced by multiple service centres and distributors, alongside persistent margin compression.
Natalia Capra France
European sites at risk of closure, according to former EUROMETAL President
“All European steel plants are at risk” of closure by 2025 if nothing is done to protect the European steel industry, ArcelorMittal France chairman Alain Le Grix de la Salle told a parliamentary hearing in Paris on Wednesday.
“The steel industry in Europe is in crisis… I cannot today make the slightest commitment… The sites, as they are, are all at risk in Europe, and therefore in France too,” declared the head of the company before the French National Assembly’s economic affairs committee, in response to an MP who asked him if he could make a commitment that no other ArcelorMittal plant would be closed in France by 2025.
“The steel industry in Europe, and therefore in France, has entered a major and serious crisis. Global overcapacity is a structural phenomenon that is here to stay. These overcapacities currently represent 550m to 600m tonnes of annual production, i.e., four to five times Europe’s production,” he told Agence France Presse. “China alone exported 100m to 120m tonnes last year. That’s the equivalent of all European consumption,” he added.
“The United States is doing everything it can to protect its industry. That leaves Europe. Steel travels. We are not against imports. We are asking that they be limited and that they not have a devastating effect on our industries, as is currently the case. We are asking for fair conditions of competition, particularly with regard to the cost of CO2,” he added. “If Europe does not decide to protect its market from unfair competition, whole swathes of our industry will disappear in the very near future. This is not doom and gloom, it is, unfortunately, pure and simple reality.”
“The list of major restructurings and closures in Europe is growing,” he warned, citing in particular the German group Thyssenkrupp, ArcelorMittal’s competitor, which plans to cut “11,000 jobs by 2030, i.e., 40% of its workforce.” ArcelorMittal suspended its decarbonisation investment plans in Europe at the end of 2024.
ArcelorMittal to close two more French distribution centres
ArcelorMittal’s Distributions Solutions France confirms to Kallanish the permanent closure of two additional distribution hubs located in Strasbourg and Valence, eastern France.
The steelmaker has communicated to its employees and labour unions a strategy to restructure and reorganise its operations in light of the ongoing crisis.
“The difficult economic climate in the steel markets is weighing on its customers’ sectors of activity, particularly in local distribution for building, mechanical engineering, and general industry. This translates into a significant and lasting drop in volumes, of around 19% between 2019 and 2024, which is affecting the company’s results,” an ArcelorMittal Distributions Solutions France note explains.
The firm plans to redeploy the Valence and Strasbourg sites’ activities to neighbouring branches. The move could cut up to 28 jobs on the one hand, and create 15 on the other. Management is continuing the information-consultation process with employee representatives, with the next meeting scheduled for Wednesday.
ArcelorMittal’s French service centre division – CSE – announced last month the closure of the Reims and Denain flat products service centres in northern France. Reims and Denain will lay off a total of 135 workers, including 113 in Reims, 21 in Denain and one in Ottmarsheim. However, the steelmaker reports the creation of 19 jobs at other sites as the closures of the two facilities will sustain activity at other production sites.
Meanwhile, the steelmaker is pausing decarbonisation investments at its Dunkirk facility in northern France due to the downturn in the global steel industry “We are operating in a difficult market, and there are a number of policy uncertainties that are impacting the industry. We need an effective Carbon Border Adjustment Mechanism, as well as more robust trade defence measures, to strengthen the business case,” a company spokesperson said last month.
Natalia Capra France
French longs mills seek increases
French long steel prices for deliveries scheduled in December and January are rising notably. Mills are increasing quotes for nearly all products by €20/tonne ($21.1), effective immediately. The move is driven by elevated production costs, high energy prices, and compressed margins, Kallanish hears.
All transaction prices remain stable; however, moderate increases are anticipated this week. Construction firms and a purchasing group indicate demand is persistently low. November saw a significant decline in sales, and projections indicate that December may reflect similar underperformance.
No restocking has occurred prior to the start of the winter holiday period. Distributors point out business is back-to-back, with little visibility and no indications of recovery in the construction sector. There is however some demand stemming from infrastructure projects in major urban areas.
A purchasing group reports that, in a year-on-year comparison, volumes have decreased by approximately 3%, while margins have dropped significantly. Domestic rebar deals are closing at €600/t average delivered. However, for December delivery, new asking prices have increased to €620/t.
Market participants show a reluctance to accept price increases, with some saying that if prices are elevated, their sustainability will be questionable.
Currently, domestic merchant bar prices are also stable month-on-month, maintaining a range of €240-250/t delivered. Including size extras of €420/t, effective levels range between €660-670/t delivered. Clients are being informed of price increases of €20/t.
The initial category of sections has stabilised month-on-month at around €760-770/t delivered. A producer raised values by €20/t last month; however, the move did not yield the desired result.
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ArcelorMittal may close two French service centres
ArcelorMittal’s French service centre division is undergoing a restructuring process, which may result in the closure of two service centres in the country, Kallanish notes.
The Reims and Denain service centres, in northern France, are currently facing economic difficulties attributed to a downturn in the domestic steel sector.
ArcelorMittal Centres de Services management met with its service centre units on Tuesday to announce a project to reorganise the company and adapt its production capacities. This includes the shutdown of Reims and Denain.
“In a difficult economic context, ArcelorMittal Centres de Services is facing a sharp drop in activity among its industry and automotive customers which has accelerated in recent months,” an ArcelorMittal spokesperson tells Kallanish.
“During this meeting, the management explained the constraints which led it to present this project, and invited the social partners to a future meeting at the end of November as part of the information/consultation process,” the spokesperson adds. “Negotiations with trade unions will take place on social measures in order to limit the impact on employment.”
“The threat of a decline in production capacity presents a significant concern for European steelmakers, placing the French steel industry at risk,” the CGT unions say. “The impact on employment levels will be substantial. For several months, the CGT ArcelorMittal Service Centres [unions] has been notifying management regarding the prevailing economic and industrial conditions.”
The automotive sector accounts for 60% of total orders, and CGT proposed alternatives to address the demands of the electric vehicle market. “The management displayed a cautious approach, opting not to take immediate action and refraining from investing,” the unions add.
ArcelorMittal’s service centres segment includes eight facilities in France. Denain and Reims offer various services including de-coiling and slitting for the automotive and industrial sectors.
This comes after the news that ArcelorMittal’s long and flat products distribution branch in Bologna, Italy, is also set to permanently close on 31 December. Customers have been notified of the decision and reassured about the status of pending deliveries. The steelmaker’s other distribution hub in Flero, Brescia, continues to operate.
Rumours have been circulating for weeks that ArcelorMittal is mulling the closure of several service centres in Europe.
Natalia Capra France
US confirms AD determination on French plate
The US Department of Commerce has settled upon an antidumping margin of 0.0% for cut-to-length carbon and steel plate from French producer Dillinger France.
The determination is consistent with Commerce’s preliminary assessment, Kallanish learns from the Federal Register.
Commerce found that during the period of review, May 2022 through April 2023, the producer made no shipments.
The subject products under review fall into the Harmonized Tariff Schedule of the US (HTSUS) subheadings 7208.40.3030, 7208.40.3060, 7208.51.0030, 7208.51.0045, 7208.51.0060, 7208.52.0000, 7211.13.0000, 7211.14.0030, 7211.14.0045, 7225.40.1110, 7225.40.1180, 7225.40.3005, 7225.40.3050, 7226.20.0000, 7226.91.5000, 7208.40.6060, 7208.53.0000, 7208.90.0000, 7210.70.3000, 7210.90.9000, 7211.19.1500, 7211.19.2000, 7211.19.4500, 7211.19.6000, 7211.19.7590, 7211.90.0000, 7212.40.1000, 7212.40.5000, 7212.50.0000, 7214.10.0000, 7214.30.0010, 7214.30.0080, 7214.91.0015, 7214.91.0060, 7214.91.0090, 7225.11.0000, 7225.19.0000, 7225.40.5110, 7225.40.5130, 7225.40.5160, 7225.40.7000, 7225.99.0010, 7225.99.0090, 7226.11.1000, 7226.11.9060, 7226.19.1000, 7226.19.9000, 7226.91.0500, 7226.91.1530, 7226.91.1560, 7226.91.2530, 7226.91.2560, 7226.91.7000, 7226.91.8000 and 7226.99.0180.
Kristen DiLandro USA
ArcelorMittal France tests MPI automotive steel blank line
ArcelorMittal France has inaugurated its Multi Part Integration (MPI) line assembled at its Montataire research centre, a line specifically designed for the production of automotive steel.
This laser ablation and welding facility will test different manufacturing processes and shapes of laser-welded blanks (LWB), also referred to as tailored blanks. It will produce prototypes for ArcelorMittal Tailored Blanks, the steelmaker’s division that supplies laser-welded and unwelded blanks to the automotive industry worldwide. In Europe, it has sites in Belgium, France, Germany, Slovakia, Spain and the UK, Kallanish notes.
The new MPI line caters to the requirements of automakers for simplified assembly and modular design in electric driving. An LWB is a sheet that combines different grades. Each grade can have different thicknesses and coatings. “The separate grades are laser welded together to create a single sheet of steel which has the best grade in the best place for strength and deformation. Each sheet can be hot or cold-stamped to give the part its final shape,” the steelmaker explains in a note. The result is a tailor-made solution employed in automotive manufacturing, specifically for the body-in-white and closures of a vehicle.
The new MPI now being tested at Montataire incorporates press hardened steel (PHS) grade and laser welding technology. This allows for the creation of a component that can be fine-tuned to meet various crash requirements and accommodate different types of motors.
The technology offers numerous benefits, such as reducing the number of structural parts and shaping steps, as well as minimising the surface area of the workshop. It also helps in reducing assembly times and weight, thanks to the utilisation of new-generation steel grades. The new line’s features will allow for the development of new laser welding processes on large blanks, ArcelorMittal concludes.
Natalia Capra France
Greybull acquires Ascometal
UK investment group Greybull Capital has been awarded France-based Ascometal’s four plants, which are currently facing insolvency, the Strasbourg administrative tribunal has ruled.
According to the ruling document obtained by Kallanish, the steelmaker will officially become part of Greybull on 20 July. Sources close to the matter say the French government will provide a €45 million ($43m) loan to the new company this year and €40m next year to support its relaunch. €90m will be injected by the buyer.
Acciaierie Vente, Sidenor, and France’s Europlasma were among the steel companies that had initially submitted offers to acquire the units but have since withdrawn. The Greybull offer is for the plants located in Hagondange, Custines, Saint-Etienne, and the Leffrinckoucke-based les Dunes unit in the north. Marcegaglia acquired Ascometal’s Fos-sur-Mer site in the south of France in May and has intentions to convert it into a coil production plant (see Kallanish 3 June).
Greybull plans to make investments and foster collaboration between the plants, specifically Hagondange and les Dunes. With the goal of diversifying production and expanding sales, the fund plans to install a new ingot line in Hagondange and revamp the rolling mill in Les Dune. This will help reduce the sites’ reliance on the automotive sector, the Ascometal trade unions have said. Greybull plans to finance the investments through debt, Kallanish understands.
In March, Ascometal, part of Swiss Steel, was declared insolvent and went into receivership after the proposed sale of its units to Italian long steel producer Acciaierie Venete was terminated (see Kallanish 28 March).
Greybull acquired what is today known as British Steel from Tata Steel in 2016 but the steelmaker then went into administration in 2019 before it was bought by Jingye Group. Greybull was also reported interested in buying the Ascoval plant and Hayange rail mill from Liberty in 2021, although they were ultimately acquired by Saarstahl.
Greybull did not comment before press deadline.
Natalia Capra France
French rebar buyers remain on fence
French rebar activity continues to be sluggish, with no market visibility. Prices are however stable, with sources indicating a slight, €10/tonne ($11) hike compared to mid-July.
The market is now on holiday, and very little is forecast to happen until the end of August. However, stocks at distributors and their clients are low, with distributors reporting empty order books. Sales are taking place from day to day, with no longer-term prospects. Customers and construction companies will adopt a wait-and-see attitude in September and will continue to buy only to cover immediate needs each day.
One seller says he has no orders for September and revenue in July was accumulated from day-to-day sales. Despite the difficulty of working without plans and visibility, and there being limited restocking, the month of July was considered “acceptable”, Kallanish notes.
Some orders for infrastructure projects improved producers’ sales in July but the remaining orders were for small volumes. Domestic rebar prices are hovering at €590-620/t delivered including size extras, depending on tonnage, sources suggest.
Natalia Capra France
