Romanian flats spot market stable, Liberty Galati still shut and in trouble
Following last week’s decline driven by high inventories and weak demand, Romanian flat steel spot prices have stabilized, with levels unchanged week on week. However, market sentiment remains fragile.
Demand is still sluggish, liquidity issues continue to restrict purchasing capacity, and, with the holiday season approaching, market participants see little chance of a near-term recovery. As domestic demand stays muted, the import market has also remained quiet, with Romanian buyers showing very limited interest in new bookings.
At present, spot market quotations for hot rolled sheet (HRS) stand unchanged at €710-735/mt ex-warehouse, while cold rolled sheet (CRS) continues to be offered at €825-845/mt ex-warehouse, also stable week on week.
On the other hand, Liberty Galati, the country’s sole flat steel producer, has remained silent with no updates regarding production or future operations. The outlook for the plant continues to appear bleak, as legal and financial pressures persist. Local media report that the courts are still attempting to address the company’s ongoing difficulties, and, given the scale of unresolved issues and outstanding complaints, industry sources believe that a resolution will likely take time. For now, uncertainty around Liberty Galati’s future remains a significant concern for the Romanian steel sector.
In the import market, activity has likewise remained muted, as Romania’s weak domestic demand continues to limit buyers’ interest in securing new volumes. Most Romanian customers are purchasing only occasional medium-sized lots from nearby suppliers, mainly to replenish minimum stock levels. The Ukrainian mill has kept its prices unchanged from last week, offering HRS at €650-660/mt CPT and CRS at €740-750/mt CPT. A Slovakian supplier has also maintained stable pricing, continuing to quote HRS at €660-670/mt CPT.
In contrast, Turkish mills have lifted their HRC offers, supported by firmer sentiment in the scrap market. Offers for January shipment have now settled at €475-495/mt CFR, compared with last week’s €475-485/mt CFR, including estimated freight costs of €15-20/mt. These import levels remain duty-free depending on the origin, although Turkish material continues to be subject to EU antidumping duties.
Metinvest confirms initial interest in acquiring idled Liberty Galati steel plant
Metinvest has confirmed a preliminary interest in Romania’s 3 million mt/year integrated iron and steel works Liberty Galati.
The Ukrainian mining and steel company confirmed to Platts, part of S&P Global Commodity Insights, it is examining the feasibility of such an acquisition and the potential synergies with its business, but added it has not yet put in a bid.
Given the Romanian state’s exposure to around Eur400 million of Liberty Galati’s cumulative debt, in mid-September the government set up the Committee for Protecting the State Interests at the Galați steel plant, according to its website.
The committee has been investigating a loan granted to the producer for the restart of its blast furnace No. 5, which came online earlier this year, but for a short period only. It has also been assessing the intentions of potential investors interested in acquiring or supporting the production activities of the steelmaking asset.
It did not specify those companies or persons, but local media mentioned Dorinel Umbrarescu, the owner of Romanian construction group UMB, as another candidate.
The state’s interest is to maintain the domestic steel industry functioning because the entire construction sector in Romania relies heavily on metal production, and also because Romania will have additional gas production from 2027, and so it would be illogical not to produce key metal components domestically, Prime Minister Ilie Bolojan said during his last month’s press conference.
In September, the plant’s administration notified the unions that technical unemployment would continue through October, with prospects for production to resume being slim, according to the Romanian government’s website.
The restructuring plan for Liberty Galati, approved by creditors and confirmed by the Galati Court in August 2025, is meant to help the steel mill avoid insolvency and implies securing the financing, and collaboration with potential investors.
Steel Mont proposes Liberty Galati revival
A European consortium led by trading company Steel Mont has proposed a toll processing agreement and potential acquisition of Romania’s currently idled Liberty Galati plant, Steel Mont said on 3 October.
The proposal, submitted to the company’s administrators on 23 September, outlines plans for a plate operation restart. Steel Mont stressed that the restart of the steelworks is critical for Romania’s steel supply independence, particularly for such sectors as defence, shipbuilding, energy and infrastructure.
The EU’s access to imports is expected to decrease significantly next year due to stricter quotas and higher duties proposed in replacement of existing safeguard measures as well as due to the introduction of the carbon border adjustment mechanism (CBAM) from 2026, market sources said.
The proposal includes raw material supply, tolling operations, and offtake of finished products, as well as the option for a potential future acquisition of the Galați steel plant.
“The consortium brings together international expertise, raw material security, and financial strength, with SteelMont at its core,” the company’s statement said.
Romanian authorities decided in mid-September to establish an inter-ministerial committee to preserve state interests in the Liberty Galati steelworks and to prevent bankruptcy.
Liberty Galati has remained idled since a failed restart attempt in June this year.
The steelworks’ capacity is 3 mt of steel per year.
Maria Tanatar Associate Director, Steel and Green Steel
Romania’s Liberty Galati plans to restart BF No. 5 in late April
Following the loan received from the government, Romania-based Liberty Galati plans to restart its blast furnace No. 5 on April 22 after the Easter vacation.
The mill was shut down for maintenance and has remained closed due to poor market conditions since the beginning of summer last year.
“Together with a strong and dedicated team of steelmakers, we are preparing to restart production operations, which is a real challenge, as the steel industry is facing the most difficult market conditions I have encountered throughout my career, comparable to the 2008 financial crisis and the 2015 steel industry crisis. However, we know how important Romanian steel is for the national economy and for the community in Galați, which is why we are making every effort to ensure the steel needs of Romania’s strategic industries. With the support of the team, I am confident that we will restart primary production operations after Easter, on April 22,” said Cornel Moisescu, head of primary at LIBERTY Galați.
Furthermore, according to sources, Liberty Galati has started to collect flat steel orders for May production. However, most purchasers are hesitating to buy because of the uncertainty that has persisted for months.
Liberty Galati restarts BF amid plate, coated demand
Liberty Galati will restart its blast furnace No.5 in the coming days, on the back of healthy demand for plate and coated products, the firm says.
Galati temporarily idled its hot end in May to “ensure a profitable and sustainable production”, with rolling continuing using slab from stock. Liberty’s Dunaújváros plant in Hungary had been supplying coke feedstock to Galati but began the process of closing its two coke oven batteries in June.
The restart comes after Liberty Group executive chairman Sanjeev Gupta met with Romanian Deputy Prime Minister Marian Neacsu in Bucharest this week. The meeting covered Galati’s imminent restart plans to serve local customers in infrastructure and shipbuilding, and Liberty’s plans for investment in green steel in Romania.
The company requested government support related to CO2 certificate allocation and the existing incentives for energy intensive consumers. The Romanian government will work with the company to identify solutions to support the restart of the blast furnace, Liberty notes.
“With the business now in a more stable position, the restart of blast furnace No.5 will help to exploit the advantages the business has in supply of plate and coated products to our customers that includes critical infrastructure projects in Romania and across Europe,” Liberty says. Galati is a “standalone ringfenced business, unaffected by the issues faced by its sister plant in Ostrava,” it adds.
The Ostrava regional court commenced insolvency proceedings against Liberty Ostrava on 13 June, while Liberty initiated the sales process for the steelworks and filed for a judicial reorganisation of the Czech plant (see Kallanish passim). It is unclear if the Ostrava works will find a buyer given the weak steel demand and investment climate in Europe.
Adam Smith Poland
