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EU Steel Market Boosted by UK Trade Deal, German Quota Push, Despite Plant Activity Dip

The European steel market is experiencing positive momentum driven by renewed trade agreements and governmental support, although satellite data reveals recent activity dips at key plants. The UK’s regained duty-free export status, as detailed in “The UK resumes duty-free exports of certain steel products to the EU,” is set to positively influence overall supply. This development comes as Germany advocates for quota revisions, highlighted in “Germany demands revision of steel quotas,” to bolster its steel industry. While these policies aim to strengthen the sector, recent satellite observations show decreased activity, and no direct connection can be established.

Bar chart and satellite map of steel production activity in Europe

Overall, the mean steel plant activity in Europe has shown considerable volatility. The most recent measurement for August shows a value of 15.0% which is significantly higher than all previous months.

AG der Dillinger Hüttenwerke, located in Saarland, Germany, is an integrated steel plant with a BOF capacity of 2760 ttpa, producing semi-finished and finished rolled products for various sectors. Satellite data indicates a consistent decrease in activity levels at the Dillingen plant from April (38%) to August (14%). The most significant drop occurred between July (17%) and August (14%). Given Chancellor Merz’s emphasis, as stated in “Chancellor Merz: Germany’s steel industry should be strengthened,” on strengthening Germany’s steel industry and the ongoing development of a national steel strategy, no direct connection can be established between the observed activity drop and these strategic government initiatives.

The Uralwagonsawod steel plant, primarily serving the defense sector, recorded fluctuating activity. The plant exhibited a stable activity increase from February (34%) to May (43%) followed by a decrease to 35% in August. No direct connection can be established with the provided news articles.

CMC Zawiercie, an EAF-based steel plant in Poland with a capacity of 1700 ttpa and ResponsibleSteel certification, showed consistently high activity compared to the European mean, although there was a dip in activity throughout the observed period. The plant’s activity decreased from a high of 61% in April and May, down to 49% in August. No direct connection can be established with the provided news articles.

Based on the reinstatement of the UK’s country-specific quota detailed in “The UK resumes duty-free exports of certain steel products to the EU,” steel buyers should anticipate potentially increased availability of category 17 steel products from UK steelmakers within the EU. However, given the recent activity drop at Dillinger, procurement strategies should consider potential short-term supply fluctuations from this specific plant. Further monitoring of activity levels at Dillingen is advisable to assess the impact of governmental support measures.