Regulatory restrictions should curb excess capacity, but the effect on global prices remains uncertain China will continue to strictly regulate steel production and prohibit the emergence of illegal new capacities in the period 2026-2030. The decision was confirmed as part of the preparation of the Five-Year Development Plan for the industry, Reuters reports. The restrictions, first introduced in 2021 to reduce CO2 emissions, were also a response to the prolonged decline in domestic demand caused by the crisis in the real estate market and chronic oversupply. In the first 11 months of 2025, steel production in China fell by 4% year-on-year, and the annual figure is estimated to fall below 1 billion tons for the first time in six years. The National Development and Reform Commission (NDRC) emphasizes that the raw materials industry, including steelmaking, is fac...

Regulatory changes were a key factor in the European market The global market for hot-rolled coil experienced moderate pressure in 2025. Despite an upward trend at the end of the year, average annual prices for products fell by 5-12%. The exception is the US, where the indicator rose by an average of 11.1% over the year. Europe In the EU market, average annual prices for hot-rolled coil (HRC) declined in most key regions. In Western Europe, the indicator fell by 4.6% compared to 2024, amounting to €603.2/t Ex works. As of mid-December, offers in the region are €620/t Ex works, which is 9.3% more than in December 2024 and 1.6% more than in the previous month. This level has been maintained since the beginning of the month and is the highest since the beginning of June. In Italy, the average annual figure for 2025 is €578.4/t Ex works, which is 7% ...

In 2026, according to MPI forecasts, this figure will fall by 1% Steel consumption in China will reach approximately 808 million tons in 2025, down 5.4% year-on-year. This is according to a recent report by the China Metallurgical Industry Planning and Research Institute (MPI), Kallanish reports. In 2026, annual rolled steel consumption will fall by 1% y/y to 800 million tons. The forecasts are based on a combination of steel consumption and consumption in the manufacturing industry. This year, according to MPI estimates, steel consumption in the construction sector has fallen by almost 13% to 400 million tons due to the situation in the real estate market. Demand related to this sector is expected to decline by 4.1% year-on-year in 2026, to 384 million tons. At the same time, demand for steel in the automotive industry will grow by 10.9% to 66.7 millio...

The production capacity of the new line will be 1 million tons   China has completed construction of its first near-zero carbon steel production line with a capacity of 1 million tons in Zhanjiang (Guangdong Province), according to CGTN. This production line, owned by Baowu Steel, uses an advanced hydrogen-based reduction process and electric arc furnace. It is noted that direct reduced iron (DRI) produced in a hydrogen-based blast furnace has achieved its metallization targets, while high-efficiency electric furnaces improve overall energy utilization. Compared with traditional processes, the line can reduce carbon emissions by 50-80%. The project is in line with the country’s 14th Five-Year Plan (2021-2025), a period identified as critical for promoting high-quality development of the steel sector through green transformation. Between 2021 and 2024...

The company's CEO notes that prices are already showing signs of such a recovery European demand for steel will recover somewhat in 2026, with prices already showing signs of such a recovery amid the introduction of new, tougher EU trade measures and the implementation of CBAM. This opinion was expressed in an interview with Platts (part of S&P Global) by Antonio Marcegaglia, CEO of Italy’s Marcegaglia Group. He said he was generally positive about annual consumption growth, especially in the second half of the year, as he predicted the effect of inventory reduction. Infrastructure spending, especially in Germany and the engineering sector, is expected to be better, while demand in the automotive industry will remain generally stable, without declining. However, Antonio Marcegaglia considers supply to be a more significant facto...

Partnership is a strategy to counter US trade barriers   South Korea’s POSCO has agreed to acquire a 20% stake in Hyundai Steel’s new steel mill in the US, according to the Maeil Business Newspaper. According to a document submitted to the country’s Financial Supervisory Service, POSCO Holdings will invest 858.6 billion won ($582 million) in the EAF plant project in Louisiana, led by Hyundai Steel. The total cost of the project is $5.8 billion, which is one of the largest foreign investments by Korean companies in the steel sector. Half of the funding will be provided by four participating companies: Hyundai Steel, which will become the largest shareholder (50%), Hyundai Motor and Kia (15% each), and POSCO (20%). The remaining funds will be raised through external borrowing. This partnership is a strategy to...