Iberian coil market doubts hikes amid weak demand
The Spanish and Portuguese hot rolled coil market is holding steady despite weak domestic demand and global trade uncertainties tied to US tariffs.
While large mills remain cautious, assessing how international trade policies will play out, local availability of HRC suggests that price increases might be more speculation than reality, at least for now, according to Kallanish sources.
“The reality is that here in Spain, HRC is available. Speculation about a potential price increase for April is more of a market rumour. What is clear is the persistent weakness in domestic demand, meaning customers will struggle to absorb higher prices,” one trader explains.
Another market participant confirms that local producers are not actively exporting and have not significantly increased their offers in recent weeks. He suggests that while prices are likely to remain steady in the short term, an increase could materialise towards the end of March.
“Service centres initially expected international prices to rise quickly due to the US tariffs, but this has not yet happened,” he notes. “Import activity has been quiet in recent weeks, as the European market awaits the announcement of European Commission safeguard measures. As a result, local mills are holding back on price increases for new orders.”
Spanish mills are currently quoting S235JR grade HRC at around €670-680/t ($728-738) delivered.
Todor Kirkov Bulgaria
Danieli completes Lusosider pickling line upgrade
Brazil-based CSN’s Portuguese subsidiary, Lusosider Aços Planos, has issued the final acceptance certificate to Danieli for the successful commissioning of the new entry section at pickling line No.2 in Aldeia de Paio Pires, the technology supplier tells Kallanish.
“The project consisted of replacing the existing mandrel with a new, tailor-made designed equipment, along with on-site advisory services for erection and commissioning,” Danieli explains.
The contract included an external bearing to limit the current deflection of the mandrel under coil loading and strip tension. “Tests conducted during the commissioning phase showed a precise integration with the pickling line and robust behaviour of the supplied equipment,” the supplier adds.
Complete with main gears and bearings, and equipped with three additional sets of adapters to cover all the internal diameters of the coils, the mandrel is capable of a wide expansion range, from 570mm to 660mm.
Todor Kirkov Bulgaria
CSN buys Portuguese steel profile producer GramPerfil
Brazil’s Companhia Siderúrgica Nacional has entered into a purchase agreement for the acquisition of Iberian steel profile producer GramPerfil, Kallanish learns from the Portuguese Competition Authority (AdC).
According to a notification published on Wednesday, the transaction will be executed through the steelmaker’s subsidiary CSN Steel SL, a distribution service company based in Bilbao, Spain.
“This acquisition enables us to expand our production, sales and processing capabilities for profiles and accessories in the civil construction and energy sectors. Additionally, it strengthens our presence in international markets, particularly in France, North Africa and Portuguese-speaking African countries,” CSN states.
The value of the transaction was not disclosed.
Todor Kirkov Bulgaria
Soaring energy costs push Siderurgia Nacional to halt production
Portuguese long steel producer Siderurgia Nacional (SN), part of Grupo Megasa, has temporarily halted operations at its Seixal and Maia plants due to surging energy costs, Kallanish reports. The stoppage, initially planned to last until Friday, may be extended further.
“Soaring electricity prices have severely disrupted operations, making it impossible for the Seixal and Maia plants to maintain regular production schedules. Until now, the plants operated only when electricity costs per megawatt-hour were economically viable,” explains Megasa.
The company warns that such drastic production cuts are economically unsustainable for Portugal’s largest energy-intensive industry. SN directly employs 700 people, indirectly supports 3,500 jobs, and contributes €900 million ($947.9 million) in annual exports.
Megasa is investing in renewable energy projects to enhance decarbonisation and cost competitiveness, including the development of a photovoltaic park at the Maia plant. However, similar projects at Seixal remain stalled, pending approvals from local and national authorities. “These are strategic, forward-looking projects essential to the company and the local and national economy,” Megasa states.
The steelmaker also calls for clearer national and European energy regulations, highlighting its competitive disadvantage compared to other European countries, where energy-intensive industries benefit from tailored cost structures. Although Portugal approved legislation in 2022 to support such industries, it remains pending European Commission approval.
“Without swift action, deteriorating conditions could jeopardise the viability of Portugal’s steel industry,” Megasa warns.
Todor Kirkov Bulgaria
Stegra bets on Sines, Portugal
Swedish greenfield venture H2 Green Steel is changing its name to Stegra, Kallanish learns. The company also says its prospective project in Portugal has received power allocation.
H2 Green Steel was launched in 2021 to build the world’s first large-scale green steel plant, with start of production scheduled in 2026. “The team continues to prove that it is possible to do more and to change things fast, also in an industry that has for a long time been considered difficult to decarbonise. As we continue this journey, we leave our more descriptive project name behind, and take on the name Stegra, which reflects our long-term ambitions,” says company chief executive Henrik Henriksson.
“Stegra is a Swedish word which means ‘to elevate’,” Henriksson explains. “It is a constant reminder of the company’s purpose and honours our Swedish roots and where it all began in Boden (northern Sweden).”
Stegra also notes it has a “solid funnel of potential projects” outside of Sweden that are being explored as part of a longer-term outlook. It is looking at locations which offer abundant access to renewable electricity and strong grid connections. Locations under consideration include Portugal, Canada and Brazil.
“Presently, a project in Portugal, where the site selection has been made and land reserved near Sines, is the most advanced. Notification on substantial allocation of the power needed has been made to Stegra and our local value chain partnerships continue to evolve,” says Henriksson.
The firm said in June it was looking at Portugal as a viable location for HBI production (see Kallanish passim).
Christian Koehl Germany
Megasa to improve energy self-sufficiency in Portugal
Portuguese long steel producer SN Maia, part of Grupo Megasa, will significantly increase the use of renewable energy in its production, Kallanish notes.
The steelmaker says it is transforming its energy matrix with the installation of more than 8,000 photovoltaic solar panels at the production site near Porto. The execution of the project has been awarded to the company Greenvolt Next Portugal.
The modules will have the capacity to produce a 5.06 megawatt peak, with an average annual production of 8,127 MWh.
“With this investment we show our commitment to the energy transition, betting on the use of renewable energy,” says Megasa’s executive director for Portugal, Álvaro Álvarez. “We plan to expand the use of renewable energy and reduce our dependence on the national electricity grid. The authorization process for the installation of solar panels in our SN Seixal unit is in a very advanced phase and is already being evaluated by local authorities.”
The Maia and Seixal operations produce wire rod, rebar and welded mesh.
Todor Kirkov Bulgaria