European Stainless Tube Trade Shifts as Policy, Imports and Data Centres Reshape Demand

European Stainless Steel

European stainless tube trade is entering a more selective phase as producers defend margins through higher-value applications, tighter specifications and regional supply advantages. The market remains stable, but it is no longer driven mainly by volume growth.

European stainless tube trade is being reshaped by three forces at once. Imports continue to pressure commodity and process pipe segments. Policy measures such as CBAM and revised safeguards are changing cost structures. At the same time, automotive exhaust demand is declining as electrification advances.

Speakers at SMR’s Stainless Steel Tube and Pipe Market Insights Day in Dusseldorf said Europe is behaving like a mature and cyclical market. Asia remains the main centre of stainless steel consumption and commodity production, while Europe depends more on technical applications, certification and regulatory positioning.

European stainless tube trade is therefore moving away from simple price competition. Producers are increasingly competing on quality, traceability, sustainability, lead times and the ability to serve complex end uses.

Italy-based Marcegaglia Specialties said traditional sectors such as construction, energy, oil and gas, automotive, water and food processing remain the backbone of demand. However, the next stage of competition will depend more on sustainability and product complexity than on basic market expansion.

CBAM and Import Pressure Are Regionalising Stainless Tube Supply

European stainless tube trade is becoming more regional because policy and geopolitics are increasing the value of local supply. CBAM, revised safeguard measures and wider instability are pushing buyers to look more carefully at origin, emissions, delivery risk and compliance.

European producers already operate inside the EU regulatory framework. This gives them an advantage in some higher-value applications where customers require reliable documentation, stable quality and shorter supply chains.

But the policy environment is not simple. Some industry speakers warned that CBAM could become more protectionist than environmental if it raises costs for European downstream processors without fully addressing import competition.

This concern is especially relevant for stainless tube makers. They buy input material under EU cost structures, but still compete with imported finished or semi-finished products in certain market segments.

OSTP chief executive Andrea Gatti argued that CBAM and revised tariff-rate quotas are creating a difficult environment for downstream processors. He said the measures can raise raw material costs for European producers while leaving import pressure unresolved in some product categories.

One concern is the way carbon steel and stainless steel products remain grouped in some quota categories. This can obscure the real level of import pressure in specific stainless segments.

The issue is most visible in process pipe. Overall import penetration in European welded stainless pipe may look moderate, but import pressure is much stronger in process pipe than in automotive or structural applications.

Some imported process pipe is arriving at prices close to European producers’ raw material costs. This creates a serious margin problem for EU producers, especially when they must meet higher regulatory, labour and energy costs.

Asian imports are particularly competitive in pipe and fittings made to ASTM specifications. Around 15-20% of the European market still requires ASTM-based products, often because older engineering standards and end-user specifications remain in place.

This creates an opening for Asian suppliers. Many have long experience producing ASTM-based products and can compete aggressively in segments where buyers focus mainly on price and basic compliance.

Asian producers are also becoming more capable of supplying European-standard material. However, some barriers remain. Hot-rolled feedstock availability, customer qualification and more complex technical requirements still protect parts of the European market.

CBAM adds another layer of uncertainty. Importers and buyers still lack full visibility on the actual carbon values that overseas suppliers will declare. Some emissions disclosures remain incomplete or unreliable.

This creates pricing uncertainty. If importers use default emissions values, CBAM costs may rise sharply. If suppliers provide certified actual data, costs may be lower. But the market does not yet know which overseas suppliers can verify emissions credibly.

For European producers, this uncertainty is both an opportunity and a risk. It may make some imports less attractive, but it also complicates raw material sourcing and customer negotiations.

The broader result is regionalisation. Buyers are increasingly weighing whether cheaper imported material is worth the compliance, delivery and emissions risk. European producers can benefit if they turn regulation into a trusted supply advantage.

However, they cannot rely on regulation alone. Imports will continue to pressure standard grades and process pipe where price remains decisive. Europe’s defence must therefore come from technical capability, service and qualification depth.

Automotive Decline and Data Centres Redefine Growth Applications

European stainless tube producers also face structural demand change in automotive applications. Exhaust-related stainless tube demand is declining as electric vehicle adoption reduces the long-term need for combustion engine systems.

German tubemaker Schoeller Werk said about 40% of its business is still linked to automotive. Around 95% of that automotive exposure is tied to combustion engine applications.

This creates a clear transition risk. Combustion engine exhaust systems have historically used stainless tube because of heat resistance, corrosion performance and durability. Electric vehicles remove much of that demand.

Industry speakers described this shift as irreversible, even if the speed varies by region. Combustion vehicles may remain relevant for some years, but the structural direction is clear.

Marcegaglia also described the shift away from combustion-engine vehicles as a trend that stainless tube producers must manage. The market cannot assume that traditional automotive exhaust demand will return.

This forces producers to find new growth areas. Data centres emerged as one of the clearest near-term opportunities during the Dusseldorf discussions.

Data centre stainless demand is growing because cooling systems are becoming more important. AI workloads, higher server density and larger hyperscale facilities require more advanced thermal management.

Stainless tubes can be used in cooling circuits, heat exchangers and wider water infrastructure. These applications often require corrosion resistance, reliability and long service life.

Gatti said the strongest opportunity may not only sit in outer water infrastructure. Inner cooling circuits also present growth potential as specifications increasingly exclude carbon steel and favour copper or stainless steel.

Copper’s high price is helping stainless steel compete. In some data centre applications, stainless can win substitution from copper on cost grounds while still meeting performance requirements.

This creates a valuable opening for European producers. Data centres are not only a volume market. They require quality, traceability, reliability and tight specifications, which fit Europe’s competitive strengths.

However, Asian competition remains a threat. If data centre projects are specified to ASTM standards, Asian suppliers may still compete strongly. This means European producers need early involvement in specifications and project qualification.

Other higher-value markets may also support growth. Specialist energy systems, premium process pipe, food processing, water treatment and industrial heat exchangers all require more complex tube products.

The key difference is that these markets reward performance rather than only price. European producers are better positioned when customers value certification, documentation, short lead times, sustainability and technical support.

This is why Europe’s competitive advantage increasingly lies in complexity. Producers cannot win every commodity segment against lower-cost imports. But they can defend and grow in applications where failure risk, qualification standards and technical requirements matter.

The next decade will likely reward producers that invest in advanced materials and difficult applications. This includes higher corrosion resistance, special dimensions, better surface quality, stronger traceability and lower-carbon documentation.

Policy could help if it is implemented carefully. CBAM and safeguards may support regional supply, but they must avoid damaging downstream processors through higher input costs or poorly designed quota structures.

The real test for Europe is execution. Producers must turn sustainability and regulation into commercial value, not only compliance costs. That means proving lower carbon intensity, shorter logistics chains and stronger product reliability.

European stainless tube trade will therefore become more segmented. Commodity and ASTM process pipe will remain import-sensitive. Automotive exhaust demand will decline. Data centres and complex industrial applications will become more important.

For producers, the strategy is clear. Europe must compete where technical standards, certification, sustainability and customer proximity matter most.

The Metalnomist Commentary

European stainless tube producers are being pushed out of low-margin commodity competition and into higher-specification markets. The winners will be companies that convert regulation, traceability and technical complexity into pricing power, especially in data centres, energy systems and premium process pipe.

Aperam Stainless Steel Earnings Rise as European Demand Recovers

Aperam

Aperam stainless steel earnings improved in the first quarter as seasonal demand recovered in Europe and average selling prices strengthened. The Luxembourg-based stainless producer reported adjusted Ebitda of €90mn in January-March, up from €67mn in the previous quarter and €86mn a year earlier.

Aperam stainless steel earnings were supported by higher shipments, better utilisation and a more favourable pricing environment. Group shipments rose to 617,000t from 554,000t in the fourth quarter and 575,000t a year earlier.

Aperam stainless steel earnings also benefited from the company’s diversified business model. Stainless and electrical steel, services, alloys, recycling and downstream activities all contributed to a stronger start to the year.

The company described the result as its best first quarter in three years. It expects second-quarter adjusted Ebitda to be significantly higher if metal and product prices remain near current levels.

Stainless and Electrical Steel Recover From Late-2025 Weakness

Aperam’s stainless and electrical steel division showed the clearest improvement. Adjusted Ebitda rose to €35mn from €11mn in the fourth quarter and €28mn a year earlier.

Segment shipments increased by 3.6% from the previous quarter to 430,000t. European demand improved seasonally, although Brazilian shipments were lower.

Average steel selling prices rose by 10.3% from the fourth quarter to €2,200/t. Prices remained below the €2,417/t recorded a year earlier, but the quarterly increase helped restore margins.

The improvement suggests European stainless markets are recovering from a difficult end to 2025. Low capacity utilisation, import pressure and subdued consumption had weighed on producer earnings.

Higher utilisation helped the division in the first quarter. Positive valuation effects also supported earnings, showing how pricing momentum can lift stainless producers when inventories and product values move favourably.

Aperam’s outlook also reflects a stronger European trade policy backdrop. Trade defence regulation could give domestic producers more protection against import pressure, especially if demand continues to recover.

Downstream Services, Alloys and Recycling Strengthen the Value Chain

Aperam’s services and solutions segment also improved. Adjusted Ebitda rose to €20mn from €7mn in the fourth quarter and €13mn a year earlier.

Shipments increased to 191,000t from 159,000t in the previous quarter. Average selling prices rose by 3.7% to €2,733/t, reflecting better downstream demand.

The alloys and specialties division generated adjusted Ebitda of €27mn. This was higher than €22mn in the fourth quarter, although slightly below the €29mn reported a year earlier.

Shipments in alloys and specialties were stable at 16,000t. Average selling prices declined by 3.1% to €15,846/t, but seasonal demand helped offset higher maintenance costs.

Aperam strengthened this higher-value position after the quarter by acquiring Magnetec Group. The acquisition adds nanocrystalline soft magnetic components and expands the company’s reach into electrical engineering and electronics markets.

The recycling and renewables segment showed higher activity but lower earnings. Shipments rose by 23% to 357,000t, while sales increased to €431mn.

Adjusted Ebitda in recycling and renewables fell to €23mn from €32mn. The fourth quarter had benefited from unusually strong year-end valuation effects, making the comparison difficult.

The recycling business remains strategically important. Aperam’s scrap integration gives it some protection against volatility in nickel, ferro-alloys and stainless scrap prices.

This matters because stainless steel production depends heavily on raw material cost control. Integrated scrap flows can improve flexibility when alloying metals and scrap markets become volatile.

Aperam’s first-quarter result therefore points to more than a cyclical recovery. It shows that stainless producers with downstream services, alloy exposure and recycling integration can defend earnings better when European demand improves.

The Metalnomist Commentary

Aperam’s first quarter shows that European stainless steel is recovering, but not evenly. The strongest signal is the value-chain effect: producers with scrap integration, downstream services and specialty alloy exposure are better placed than those relying only on commodity stainless volumes.

India Stainless Steel Fuel Crunch Forces Jindal Stainless to Reduce Operations

Jindal Stainless

India stainless steel fuel crunch is now directly cutting production at Jindal Stainless, the country’s largest stainless steel producer. The company has begun operating its plants at reduced capacity as Middle East tensions disrupt fuel availability and global shipping routes.

The pressure is centered on critical industrial fuels and gases used across stainless steelmaking. Propane, LPG, and natural gas supplies have tightened after disruptions around the Strait of Hormuz, creating a direct operational risk for Indian mills.

Jindal Stainless said limited fuel availability has affected several manufacturing processes and forced the company to rationalise operations. The India stainless steel fuel crunch is also raising the risk of shipment delays for customers.

Stainless Steel Mills Face Higher Fuel Exposure Than Carbon Steel Producers

Stainless steel producers face a different energy risk profile from conventional carbon steel plants. Blast furnace-based steelmakers can use internally generated gases from coke ovens and blast furnaces, while scrap-based stainless steel routes depend more heavily on external fuel supply.

This structural difference is now becoming a competitive and operational weakness. When LPG, propane, or piped natural gas supplies tighten, stainless steel mills have fewer internal alternatives to maintain stable production.

Jindal Stainless has around 3 million tonnes per year of production capacity and plans to expand to 4.2 million tonnes per year in April 2026-March 2027. However, the current fuel disruption shows that capacity growth depends not only on demand and investment, but also on reliable energy logistics.

Fuel Allocation Becomes a Strategic Issue for Indian Industry

India’s fuel allocation policy is adding another layer of pressure. The government has diverted part of natural gas supply away from industry to prioritise household consumption, leaving manufacturers exposed to tighter industrial supply.

Jindal Stainless said clear guidance on propane, LPG, and natural gas allocation will be essential for stainless steel producers. Stable fuel supply is now necessary for mills to plan production, manage customer commitments, and avoid deeper disruptions.

The broader Indian stainless steel sector is also feeling the strain. Small and mid-sized mills, particularly in regions such as Gujarat, are cutting output as LNG shortages deepen. Mills reliant on LPG or piped natural gas face the most severe constraints.

The India stainless steel fuel crunch could therefore become more than a temporary supply issue. If fuel availability does not stabilise, temporary shutdowns may follow across parts of the sector, tightening stainless supply and delaying deliveries to downstream manufacturers.

The Metalnomist Commentary

India’s stainless steel sector is showing how energy security can become an industrial competitiveness issue. Scrap-based steelmaking supports decarbonisation, but it still needs stable external fuel systems to remain reliable at scale.

Indian Stainless Seamless Tube Exports Set to Stay Resilient in EU Market

Stainless Tube

Indian stainless seamless tube exports to Europe are expected to remain resilient despite tighter EU safeguard quotas and rising carbon compliance costs. European buyers continue to depend on imported material in product categories where regional stainless seamless tube capacity remains insufficient.

Indian stainless seamless tube exports are being tested by two forces at once. Europe is tightening trade protection and carbon policy, while India is expanding production capacity to serve both export and domestic industrial demand.

The result is not a simple import slowdown. Instead, the European market is likely to become more selective, with buyers continuing to source from India where local supply cannot meet technical, volume or cost requirements.

Speakers at SMR’s Stainless Steel Tube and Pipe Market Insights Day in Dusseldorf said EU safeguard quotas and the carbon border adjustment mechanism will raise costs. However, they said these measures will not remove Europe’s structural need for non-EU seamless tube supply.

EU Supply Gaps Keep Indian Tube Imports Viable

European stainless seamless tube buyers are not abandoning overseas suppliers because domestic mills cannot fully cover demand across all product segments. This is especially true in applications requiring specific sizes, grades, delivery windows or fabrication-linked supply.

Venus Europe managing director Stefan Muller-Bernhardt said price increases in Europe are being driven more by policy measures and cost inflation than by genuine shortages caused by lower imports. This distinction matters because trade measures may raise landed costs without creating enough domestic capacity to replace imports.

Ratnamani Metals and Tubes stainless steel division head MS Randhawa said imports will remain viable where demand exceeds regional supply. Even when buyers face higher tariffs and compliance costs, the need for material can outweigh the added expense.

This is particularly relevant for seamless tubes used in export-oriented fabrication. Products tied to heat exchangers, pressure vessels and engineered systems may still require imported tube input if European supply is limited or too expensive.

CBAM adds another layer of uncertainty. Importers will need to manage emissions reporting, verification and future carbon costs. But the mechanism is unlikely to eliminate Indian stainless seamless tube exports where Europe lacks sufficient domestic alternatives.

Safeguard quotas will have a more direct commercial effect. Tighter quotas can restrict volume flexibility and raise the risk of duty exposure. However, buyers with technical dependence on imports may continue purchasing Indian material even at higher cost.

This creates a more disciplined import market. Indian suppliers that can offer consistent quality, compliance documentation and reliable delivery will be better positioned than low-cost exporters with weaker transparency.

For European buyers, the key issue is not whether imports become more expensive. It is whether domestic producers can replace the material. In many seamless tube categories, the answer remains uncertain.

Indian Capacity Growth and Process Routes Reshape Competition

India’s stainless seamless tube industry is expanding rapidly, but speakers said this should not be viewed only as export pressure on Europe. Indian producers are also adding capacity to serve fast-growing domestic demand.

India’s refining, power, fertiliser, semiconductor, defence and industrial sectors are all increasing stainless seamless tube consumption. These applications require corrosion resistance, pressure integrity and reliable mechanical performance.

India also has low per-capita stainless steel consumption, leaving substantial room for long-term domestic growth. As industrialisation continues, local tube demand should absorb part of the new capacity being added by Indian producers.

Still, exports will remain attractive. Overseas markets often offer larger order volumes, better price realisation and more diversified customer bases. Europe will therefore remain important, even as Indian domestic demand strengthens.

The market is also seeing a technical divide between production routes. Rotary piercing is gaining share because of lower costs and improving process technology. This route is becoming more competitive in mainstream seamless tube applications.

Hot extrusion remains important for more demanding segments. Aerospace, defence, nuclear and nickel alloy applications still require higher-end processing, tighter quality control and stronger technical assurance.

The two production routes are unlikely to converge into one dominant model. Rotary piercing will likely serve broader volume demand, while hot extrusion will remain positioned in premium and technically demanding markets.

This divide matters for Europe. Buyers may use Indian piercing-based supply for standard industrial applications, while relying on hot-extruded material for more critical service conditions.

Indian stainless seamless tube exports will therefore become more segmented. The market will differentiate between commodity-grade volume, engineered stainless products and high-specification alloy tubes.

For Indian producers, the opportunity is clear. Companies that can serve both cost-sensitive mainstream demand and higher-specification industrial applications will be better placed to withstand EU policy pressure.

For Europe, the challenge is also clear. Trade controls and CBAM may protect local producers, but they cannot immediately create missing capacity in specialized seamless tube categories.

The Metalnomist Commentary

The EU’s policy direction will raise the cost of Indian stainless seamless tube exports, but it will not remove Europe’s import dependence. The stronger long-term shift is segmentation: lower-cost piercing will serve volume demand, while hot extrusion will defend premium industrial applications.

SMEL Specialty Stainless Steel Capacity Plan Targets Higher-Value Indian Steel Demand

Shyam Metalics and Energy

SMEL specialty stainless steel capacity is set to expand by 2029 as India’s Shyam Metalics and Energy prepares new investments aimed at raising the share of higher-margin, value-added steel products in its portfolio. The company plans to invest an additional Rs27bn across two projects, subject to board approval.

SMEL specialty stainless steel capacity growth will be supported by a major stainless steel downstream expansion and a new special bar quality and specialty wire rod mill. Both projects are scheduled for commissioning by 2029.

SMEL specialty stainless steel capacity expansion reflects a broader shift in India’s steel industry. Producers are moving beyond commodity long products and into higher-specification materials for automotive, rail, engineering, infrastructure and coastal applications.

The proposed investment also aligns with India’s strategy to reduce dependence on imported cold-rolled stainless products. Local downstream capacity can improve supply security for manufacturers that need consistent quality, shorter lead times and domestic sourcing options.

SBQ and Specialty Wire Rod Mill Moves SMEL Into Premium Long Steel

SMEL plans to invest Rs9bn in an SBQ and specialty wire rod project with 800,000 t/yr of capacity. This will mark the company’s entry into premium long steel production.

Special bar quality steel is used in demanding applications where strength, consistency, machinability and metallurgical control are important. Key end-use sectors include automotive components, engineering products, industrial machinery, infrastructure and precision manufacturing.

Specialty wire rod also gives SMEL access to higher-value markets than conventional long steel. These products can serve fasteners, springs, bearings, welding wire, automotive parts and other engineered applications.

The investment is strategically important because premium long steel requires stronger process control and customer qualification. Producers must meet tighter chemistry, cleanliness, dimensional and mechanical property requirements.

For SMEL, the project could improve margins by shifting part of its output toward more specialised products. It also reduces exposure to lower-margin commodity steel cycles, where pricing is more vulnerable to oversupply and weak construction demand.

Stainless Expansion Targets Import Substitution and Downstream Integration

The larger part of the investment, Rs18bn, will go toward stainless steel downstream expansion. The plan includes melt shop expansion, higher hot-strip mill capacity, cold-rolling expansion and a new reversible cold-rolling mill.

SMEL also plans to add hot-rolled, cold and bright annealing and pickling lines. These process additions are important because stainless steel value increases significantly as producers move from melt shop output into rolled, finished and surface-treated products.

Cold-rolled stainless steel is especially important for automotive, rail, appliances, process equipment, industrial fabrication and coastal infrastructure. These markets need better surface quality, tighter tolerances and stronger corrosion performance.

The project could help reduce India’s reliance on imported cold-rolled stainless products. This matters as domestic demand grows and buyers seek more reliable local supply.

The expansion also improves SMEL’s integration across the stainless value chain. By adding more downstream processing, the company can capture more value from each tonne produced and offer a wider product range to industrial customers.

The key execution challenge will be qualification. Automotive, rail and infrastructure customers often require stable quality, repeatable processing and technical approvals before shifting supply.

If SMEL delivers the expansion on schedule, it could become a more important domestic supplier in India’s value-added stainless and specialty steel market. The company’s success will depend on ramp-up discipline, product quality and customer conversion, not capacity alone.

The Metalnomist Commentary

SMEL’s investment plan shows that Indian steel growth is moving toward quality, not only volume. The real opportunity lies in import substitution and higher-specification products, where domestic producers can capture more value from India’s industrial expansion.

European Stainless Steel Scrap Prices Rise on Stronger Mill Demand

Stainless Steel Scrap

European stainless steel scrap prices continued to rise this week as stronger mill demand and firmer downstream stainless steel prices supported the market. Both 304 and 316 stainless scrap grades moved higher on a week-on-week basis, reflecting tighter availability and improved buying interest.

European stainless steel scrap prices gained as mills returned to the market more actively for near-term production needs. The 304 stainless scrap solids cif Rotterdam assessment rose to €1,280-1,300/t, compared with €1,250-1,300/t the previous week.

European stainless steel scrap prices also benefited from stronger sentiment in finished stainless steel markets. Traders reported steady enquiries, higher bid levels, and better liquidity as producers moved to secure feedstock.

304 Stainless Scrap Gains as Mills Secure Feedstock

The 304 stainless scrap market strengthened as sustained buying interest pushed the lower end of the price range higher. Sellers were able to achieve improved prices, especially where prompt material was available.

Mill demand remained firm after the previous week’s sharp increase. Producers continued to procure scrap for near-term stainless steel production, creating a more competitive buying environment.

The rise in downstream flat stainless steel prices was a key driver. Stronger finished product pricing encouraged mills to step up scrap purchases after a period of more cautious buying.

316 Scrap Tightens on Limited Molybdenum-Bearing Supply

The 316 stainless scrap market also moved higher, with solids cif Rotterdam rising to €2,300-2,350/t from €2,280-2,330/t. The increase reflected tight availability of molybdenum-bearing scrap and steady mill purchasing interest.

Supply remained limited as some sellers held back material in expectation of further price gains. Others reported reduced availability of prompt tonnage, adding support to the market.

The tighter supply-demand balance strengthened pricing momentum across the stainless scrap complex. If downstream stainless steel prices remain firm, mills may continue to support higher scrap levels.

The Metalnomist Commentary

The stainless scrap market is showing how quickly feedstock prices can respond when mills regain confidence. The key risk is whether stronger finished stainless prices can hold long enough to sustain this buying cycle.

NAS Stainless Mill Expansion Strengthens Acerinox’s US Growth Strategy

Acerinox

NAS stainless mill expansion has started operations, giving Acerinox a stronger production base in the US stainless steel market. The Spanish stainless steel and high-performance alloys producer said the expansion at North American Stainless in Kentucky began at the start of 2026.

NAS stainless mill expansion will add 308,000 short tons per year of capacity. This lifts the mill’s annual run rate to 1.85mn short tons from its previous 1.54mn st/yr base.

NAS stainless mill expansion had been delayed from the end of 2025 because of crane repair and revamp work at the site. The start-up now gives Acerinox more exposure to a US market it sees as more stable and attractive than Europe.

The project reinforces Acerinox’s investment preference. The company said US finished stainless base prices have been more stable than European prices, which remain affected by severe swings and the historic lows reached in mid-2023.

US Stainless Market Shows Signs of Recovery

US apparent finished stainless demand fell by 11% year on year in the first quarter. However, demand improved by 5% from the previous quarter, supporting Acerinox’s view that US orders have recently strengthened.

US stainless inventories are now 7% below the historical average and appear stabilised. Deliveries have also grown in recent months, suggesting that the market may be moving beyond the weakest part of the cycle.

North American Stainless operated at an 80% utilisation rate in the quarter, excluding the new expansion. That implies quarterly stainless production of around 308,000st.

The expansion gives Acerinox more leverage if US demand continues to recover. Higher capacity at NAS can support customers in appliances, construction, automotive, energy, industrial equipment and infrastructure applications.

The US market also offers a more attractive pricing environment for Acerinox. Compared with Europe, where stainless producers have faced deeper price volatility, the US provides a clearer platform for investment and margin stability.

Aerospace and Gas Turbines Support High-Performance Alloy Outlook

Acerinox’s high-performance alloys division faced weaker demand from oil and gas and chemical processing customers. Geopolitical uncertainty has slowed investment in those sectors, reducing near-term demand for specialty alloys.

However, the company expects stronger aerospace demand to support Haynes International, a key part of its high-performance alloys business. Aerospace remains an important market for nickel-based and specialty alloys used in engines, structures and high-temperature components.

Industrial gas turbines are another potential growth driver. Demand from AI data centres could support turbine investment as power infrastructure becomes a bottleneck for digital expansion.

This matters because AI data centres require reliable electricity, backup generation and grid reinforcement. That can increase demand for high-temperature alloys used in turbine blades, combustion systems and other demanding energy equipment.

Acerinox’s strategy now has two clear pillars. It is expanding stainless capacity in the US through NAS while positioning high-performance alloys around aerospace and energy infrastructure growth.

The Metalnomist Commentary

Acerinox is using the US market as its growth anchor because stainless pricing and demand visibility remain stronger than in Europe. The NAS expansion also shows how specialty metals producers are aligning investment with aerospace, data-centre power demand and more resilient regional markets.

JSL Stainless Steel Sales Rise as Indian Demand Offsets Trade Pressure

JSL stainless steel

JSL stainless steel sales increased in the 2025-26 financial year as strong domestic demand supported broader adoption across infrastructure, mobility, defence and industrial sectors. Indian producer Jindal Stainless sold 2.5mn t of stainless steel during the year to 31 March, up 8% from 2.3mn t a year earlier.

JSL stainless steel sales were driven mainly by India’s internal market. Domestic sales accounted for 92% of annual volumes, showing that the company is prioritising local demand while global trade conditions remain uncertain.

JSL stainless steel sales dipped slightly in January-March to 641,743t from 649,857t in the previous quarter. The company attributed the decline partly to energy-related constraints linked to geopolitical uncertainty in the Middle East.

The result highlights India’s growing role as a stainless steel demand centre. Consumption is expanding beyond conventional industrial uses into electric vehicles, trailers, containers, real estate, defence, aerospace and infrastructure.

Domestic Demand Anchors Volume Growth

Indian stainless steel demand remained the main growth engine for JSL. Government-backed infrastructure programmes and rising preference for longer-life materials supported consumption across multiple end-use sectors.

Stainless steel is gaining ground where durability, corrosion resistance and lifecycle cost matter. This is particularly relevant for coastal infrastructure, transport equipment, public works, defence systems and industrial applications.

Electric vehicles and trailers are also becoming more important. These sectors use stainless steel for strength, corrosion resistance and long-term reliability in components exposed to demanding operating conditions.

JSL’s domestic focus gives it some insulation from weak or volatile export markets. A strong home market allows the company to keep capacity utilisation higher while managing margin pressure from global competition.

The company is also preparing for further growth. JSL plans to increase annual melt capacity to 4.2mn t during the current financial year ending 31 March 2027.

That expansion will strengthen its position in India’s stainless market. However, the company will need sustained domestic demand growth to absorb the additional capacity without weakening prices.

Imports and Energy Costs Shape Competitive Risk

JSL continues to face pressure from Chinese-origin and Vietnamese stainless steel imports. The company warned that substandard material is allegedly being rerouted through ASEAN countries, raising concerns about trade circumvention and domestic input quality.

This issue matters because import pressure can undermine local producers even when domestic demand is healthy. Low-priced or poor-quality imports can distort pricing, weaken margins and create risks for downstream users.

Trade defence therefore remains important for India’s stainless steel industry. Domestic producers need fair competition if they are expected to invest in higher-value capacity and support national manufacturing goals.

Energy costs are another risk. JSL said geopolitical uncertainty in the Middle East affected sourcing of propane, LPG and natural gas used in stainless steel manufacturing.

This shows how stainless steel production remains exposed to energy supply chains. Even when demand is strong, fuel availability and cost can affect output, margins and quarterly shipment performance.

Exports remained steady despite geopolitical conflicts and tariff uncertainty. JSL is building its presence in Japan, South Korea, Taiwan and Germany, supported by its value-added product portfolio.

This export strategy is important because value-added stainless products can help protect margins. Higher-specification products are less exposed to commodity price competition and more dependent on quality, qualification and customer relationships.

The Metalnomist Commentary

JSL’s performance shows that India’s stainless steel market is becoming a domestic demand story rather than an export-led one. The company’s next challenge is to defend quality and margins as imports, energy volatility and capacity expansion reshape competition.

Foreign investment accelerates Turkey stainless steel growth as re-rolling hub emerges

Stainless Steel

Turkey stainless steel growth is reshaping the country from a net importer into a re-rolling and processing hub. Turkey stainless steel growth is driven by foreign investment, shifting trade flows and a policy push to protect local value addition. As a result, Turkey stainless steel growth now sits at the centre of regional stainless supply chains.

Foreign investors underpin Turkey stainless steel growth

Turkey has become the only major stainless consumer without melting capacity, yet it plays a growing trade role. The country still imports all flat and semi-finished stainless products, but its position in re-rolling and processing continues to strengthen. Imports of flat-rolled stainless not further worked than hot-rolled reached about 250,000t in 2024, up by 15pc on the year.

However, imports of hot-rolled and cold-rolled flat products fell by around 8pc to below 70,000t, showing more local processing. Exports of flat-rolled stainless fell to just over 100,000t in 2024, down from 230,000t in 2022. This export drop partly reflects stronger domestic stainless consumption after the 2023 earthquake and more onshore value retention.

Foreign capital sits at the heart of Turkey stainless steel growth. Posco’s Assan TST remains the largest local cold-rolled stainless producer and has delivered more than 2mn t since 2013. Taiwan’s YC INOX added a 4,000 t/month tube operation in 2022, with pickling capacity that allows direct use of hot-rolled semi-finished feed. These investments reduce reliance on imported finished products and lift Turkey’s role in regional supply chains.

Policy protection and new projects reinforce Turkey stainless steel growth

New capacity plans will further expand Turkey stainless steel growth over the next decade. China’s Yongjin Technology plans a 400,000 t/yr cold-rolling mill at Yalova, targeting completion in 2027. Domestic service centre Saritas Celik Sanayi ve Ticaret AS aims for an 800,000 t/yr stainless facility in four phases, with 400,000 t/yr of cold-rolled capacity expected online from 2027.

Ankara is matching this investment wave with trade defence tools to shield Turkey stainless steel growth. The government raised import duties on cold-rolled stainless steel coil from 8pc to 12pc in December 2023. At the same time, it cut duty on stainless plate to zero and kept hot-rolled coil duties at 2pc, encouraging inbound semi-finished feed for further processing.

Turkey has also launched anti-dumping investigations to guard its expanding base. Authorities are probing imports of cold-rolled plate and coil from Indonesia and China following complaints from Posco Assan TST and Celik Sanayi. Existing anti-dumping duties on welded stainless tubes from China and Taiwan were extended by five years in June. Higher rates apply to most suppliers, with reduced duties for a few named producers such as Foshan Vinmay and YC INOX. These measures aim to preserve margins for local processors as Turkey stainless steel growth accelerates.

The Metalnomist Commentary

Turkey’s stainless sector is evolving into a classic “no-melt, high-processing” model backed by Asian and domestic capital. If trade defence remains targeted and predictable, Turkey can deepen its hub role without triggering severe retaliation or supply distortions. The next test will be whether planned capacities absorb regional demand or ignite a new wave of competitive exports.

Outokumpu Stainless Steel Deliveries Rise as EU CBAM Supports Local Demand

Outokumpu

Outokumpu stainless steel deliveries rose sharply from the previous quarter after the EU’s carbon border adjustment mechanism began applying to imports at the start of the year. The Finnish stainless steel producer shipped 465,000t in January-March, up 27% from the previous quarter.

Outokumpu stainless steel deliveries were still down 1% from a year earlier, showing that the recovery remains uneven. But the quarterly increase suggests CBAM is starting to shift some demand toward local European production.

Outokumpu stainless steel deliveries are expected to rise by up to 10% in the second quarter. The company is benefiting from European buyers reassessing imports as carbon-related costs begin to affect non-EU supply.

The result highlights the industrial importance of scrap-based stainless steel production. CBAM could improve the competitiveness of lower-carbon European producers if importers face higher carbon costs.

CBAM Gives European Stainless Producers a Demand Tailwind

CBAM imposes a carbon levy on imports from outside the EU. This changes the cost comparison between imported stainless steel and local European material.

For Outokumpu, the mechanism supports demand for European scrap-based stainless production. Scrap-based production generally carries a lower carbon footprint than more emissions-intensive routes.

European stainless shipments reached 324,000t in the first quarter, up 2% from a year earlier. This suggests regional demand held up better than some other markets.

Shipments to the Americas fell by 5% to 148,000t. However, the Americas business still delivered much stronger earnings because of higher average selling prices.

The commercial message is clear. Volume growth is beginning to appear in Europe, but pricing power remains stronger in the Americas.

Ferro-Chrome Volumes Rise but European Margins Weaken

Outokumpu’s ferro-chrome shipments rose by 15.8% year on year to 110,000t. Strong demand in Europe and the US supported the increase.

Ferro-chrome remains essential for stainless steel production because chromium provides corrosion resistance. Higher ferro-chrome shipments therefore show stronger activity across stainless and alloy supply chains.

Group adjusted Ebitda rose by 33% on the year to €65mn. The improvement was driven mainly by the Americas business, where Ebitda climbed to €52mn from €11mn.

But the earnings mix was uneven. Ferro-chrome Ebitda fell by nearly 30% to €30mn, while the European stainless segment posted negative Ebitda of €13mn, down from positive €5mn a year earlier.

Outokumpu attributed weaker European profitability to lower average selling prices and lower fixed-cost absorption. This shows that CBAM may support volumes before it fully restores margins.

The first-quarter result therefore sends a mixed signal. European demand is improving, but pricing and cost absorption still need to recover for the regional stainless business to regain strength.

The Metalnomist Commentary

Outokumpu’s quarter shows that CBAM is beginning to change stainless steel trade behaviour. But the policy’s real test is whether it can improve European producer margins, not only redirect demand toward local supply.

 

Nickel surplus to widen through 2026: INSG outlook for miners and metals markets

INSG(

The nickel surplus to widen through 2026 is reshaping expectations for miners, traders and stainless producers worldwide. According to the latest INSG forecast, the nickel surplus to widen through 2026 will see production consistently outpace usage, even as global economic activity proves more resilient than expected. As a result, the nickel surplus to widen through 2026 is set to reach 209,000t in 2025 and 261,000t in 2026, with primary output rising to 3.81mn t this year and 4.09mn t in 2026 against usage of 3.6mn t and 3.82mn t.

Stainless demand supports nickel, but batteries lose momentum

Nickel demand remains supported by stainless steel, but battery growth has clearly cooled. Higher stainless steel output continues to underpin core nickel usage, particularly in Asia and Europe. However, battery demand has slowed as automakers and cell producers shift towards non-nickel chemistries such as LFP and accelerate plug-in hybrids over pure battery electric vehicles. Therefore, the high-growth battery narrative has softened, easing pressure on high-purity nickel sulphate demand.

Meanwhile, this demand shift is forcing producers and investors to reassess project pipelines focused on battery-grade nickel. Margins are under strain where costs are high and product mixes are heavily exposed to the EV segment. In this environment, stainless steel remains the anchor sector, but it cannot fully absorb the excess tonnes entering the system. This imbalance feeds directly into the widening surplus and keeps a lid on any sustained price rally.

Indonesia drives supply growth as others retrench

On the supply side, Indonesia remains the dominant driver despite tighter regulatory control. The government has delayed permit approvals, seized non-compliant land and punished firms that fail reclamation duties. However, the INSG believes these interventions have only created temporary disruptions, with overall Indonesian nickel output still expected to increase through 2026. This continued expansion reinforces the structural surplus and raises competitive pressure on higher-cost regions.

Outside Indonesia, weaker profitability has already forced several producers to scale back or suspend operations. In China, the shift from nickel pig iron towards more refined cathode output is forecast to continue as the industry optimises for flexibility and value. Nickel sulphate production is expected to ease in 2025 as battery demand softens, before recovering in 2026 when market conditions stabilise. For now, prices remain trapped between steady stainless demand and a widely recognised surplus in exchange-traded Class 1 inventories, with three-month nickel recently trading near $15,480/t.

Financial conditions are improving, with global inflation forecast to decline across most G20 economies by 2026. Even so, the INSG warns that tariffs and trade measures could offset some macro tailwinds by adding friction to investment decisions, supply chains and downstream demand growth. If policy risk rises, it may delay project sanctions and accelerate closures at the margin, but the current surplus path remains firmly in place.

The Metalnomist Commentary

The INSG nickel surplus outlook underscores a market where supply discipline lags structural investment made during the last bull cycle. For producers, cost reduction, product differentiation and downstream partnerships will be critical to survive a prolonged surplus. For consumers in stainless and batteries, the coming years offer a rare window to secure long-term nickel units on favourable terms before the next demand wave arrives.

NPI–Class I Nickel Spread Narrows as Metal Oversupply Pressures Prices

Nickel cathode

NPI–class I nickel spread narrowed sharply in March as persistent oversupply in the class I nickel market pushed metal prices lower, while nickel pig iron prices stayed supported by elevated production costs. The average spread fell to $2,975/t in March, down from the 2025 annual average of $3,696/t.

The narrower NPI–class I nickel spread shows how differently the two nickel markets are behaving. Class I nickel remains under pressure from high exchange stocks and weak absorption from battery and alloy users. NPI, by contrast, is being held up by Indonesian ore costs and a firmer production cost floor.

The current spread also discourages additional class I output from NPI conversion. Estimated conversion costs from NPI to class I nickel remain around $4,000/t, meaning producers using NPI as feedstock would face negative margins at current price levels.

This creates an important signal for the nickel supply chain. Oversupply is still weighing on refined metal, but high feedstock and processing costs are preventing prices from falling evenly across all nickel products.

Class I Nickel Oversupply Keeps Metal Prices Under Pressure

Class I nickel oversupply remains the main reason behind the compressed spread. London Metal Exchange nickel stocks reached 289,506t on 26 February, the highest level since May 2018.

Ample exchange inventory has pressured class I nickel prices and opened an import arbitrage window into China. China’s nickel imports rose by 18% in January-February as lower overseas prices made imported metal more attractive.

However, end-user demand has not been strong enough to absorb the surplus. Battery and alloy-sector consumption remained insufficient to clear the additional metal units, pushing Shanghai Futures Exchange nickel stocks higher.

SHFE nickel inventories rose to 65,764t on 10 April from 45,544t on 9 January. This inventory build shows that imports and domestic availability are running ahead of immediate consumption.

The oversupply problem is structural in the near term. New class I capacity has continued to emerge, while demand from stainless steel, batteries and specialty alloys has not grown fast enough to rebalance the market.

The NPI conversion route is therefore unattractive. When the NPI–class I nickel spread sits below conversion cost, producers have little incentive to turn NPI into refined metal. This helps prevent additional supply from that route, but it does not immediately remove existing class I oversupply.

NPI prices have been more resilient because they are tied closely to Indonesian ore economics. Indonesian nickel ore prices remain elevated and continue to trade above the government-mandated price floor.

Concerns over tight ore availability have supported feedstock values. This has limited NPI producers’ willingness to cut prices, even though stainless steel demand remains only average.

That cost floor is important. NPI is not rising because downstream demand is exceptionally strong. It is holding because ore, mining quotas and Indonesian pricing policy are preventing a deeper fall.

The result is a distorted market structure. Class I nickel is being pulled down by inventory pressure, while NPI is being supported by feedstock costs. This explains why the spread has narrowed despite weak overall nickel sentiment.

MHP and HPAL Costs Could Rebuild the Spread Over Time

Mixed hydroxide precipitate is becoming the more important cost driver for future class I nickel production. Much of the newly added class I capacity relies on MHP feedstock rather than NPI.

Integrated producers with their own Indonesian MHP capacity have a cost advantage. Their MHP production costs are estimated at around $13,000/t in nickel metal equivalent, with conversion costs from MHP to metal at roughly $3,000/t.

This places the total cost of class I production through the MHP route at about $16,000/t. That cost base can still support production for integrated operators, but it leaves less room for producers relying on third-party MHP.

The market problem is that MHP supply is not sufficient to meet all feedstock requirements for new class I capacity. This creates competition for MHP units and limits how much low-cost refined nickel can be produced through this route.

Cost pressure is also rising across HPAL operations. Middle East tensions have tightened sulphur availability and lifted sulphur prices, which directly affects MHP producers that rely on sulphuric acid-intensive processing.

Sulphur and sulphuric acid are central to HPAL economics. Any disruption to sulphur flows can raise operating costs, reduce margins or force producers to curtail output if acid availability becomes constrained.

Indonesia’s revised nickel ore pricing formula adds another layer of pressure. The new formula is expected to have a greater impact on ore consumed by HPAL projects than on ore used by rotary kiln electric furnace operations.

This is because HPAL ore often trades closer to official pricing levels, while RKEF ore used for NPI already trades at premiums well above the benchmark. As a result, HPAL producers may feel the revised HPM framework more directly.

Higher ore prices and higher taxes could lift MHP production costs. That would eventually raise the cost floor for class I nickel produced through the MHP route, especially for integrated producers that had previously enjoyed lower feedstock costs.

This cost inflation may support class I nickel prices over time. While current oversupply is weighing on metal values, producers cannot keep adding supply indefinitely if feedstock and conversion costs rise.

NPI prices are also likely to remain anchored by costs. Indonesian ore tightness, quota uncertainty and pricing reforms should continue to support NPI even if stainless steel demand stays moderate.

As MHP costs rise and NPI prices remain cost-supported, the NPI–class I nickel spread may widen back toward the $3,500-4,000/t range over time. That would restore a more normal relationship between feedstock products and refined metal.

However, the timing depends on inventory absorption. Class I nickel prices will struggle to recover strongly until exchange stocks stop rising and downstream demand improves.

For battery supply chains, the key issue is cost pass-through. If MHP and HPAL costs rise while class I prices remain weak, margins across nickel sulphate and cathode material chains could tighten.

For stainless steel producers, NPI resilience means raw material costs may remain sticky even without strong demand. This could limit margin recovery if finished stainless prices do not rise in parallel.

The nickel market is therefore entering a complex adjustment phase. Oversupply is pushing refined metal lower, while policy, ore availability, sulphur costs and HPAL economics are raising the cost floor beneath intermediate products.

The Metalnomist Commentary

The narrowing NPI–class I nickel spread is not a sign of healthy convergence. It reflects class I oversupply on one side and cost-protected NPI on the other. The next shift will likely come from rising HPAL and MHP costs, not from a sudden recovery in nickel demand.

Europe Faces Deindustrialization Crisis Amidst Unfair Competition and Policy Struggles

Aperam

Europe’s stainless steel industry is at a critical crossroads, facing existential challenges due to high raw material costs and increasing competition from Asian producers. According to Timoteo di Maulo, CEO of Aperam, the European sector is particularly vulnerable due to its reliance on more expensive, environmentally-friendly processes, while Asian producers benefit from cheaper, carbon-intensive nickel pig iron (NPI). Speaking at the SMR International and Special Steels Conference in Rome, di Maulo warned, “Europe will die if it cannot create a level playing field,” likening the current situation to playing European football against American football, a game neither possible nor fair.

Stainless Steel Demand Decline and Unequal Standards

Market data from SMR revealed that real stainless steel demand in Europe is expected to fall by 6% in 2024, following a decline of 3% in 2022 and 8% in 2023. The gap in production methods between Europe and Asian competitors is widening, as Indian and Chinese producers are not required to use high scrap ratios, giving them a distinct cost advantage. European steelmakers, driven by stringent EU decarbonization policies, are forced to use higher-priced scrap, further straining the industry's competitiveness.

Di Maulo emphasized that while both Europe and Asia rely on ferro-nickel and NPI, European producers face additional financial burdens that threaten the industry’s long-term viability. The decarbonization measures that Europe imposes on its steelmakers are not mirrored in Asia, where efforts to reduce carbon emissions fall short of European standards.

The situation is compounded by the upcoming European Carbon Border Adjustment Mechanism (CBAM), set to take effect in 2026. Di Maulo described CBAM as an experimental policy that risks accelerating deindustrialization by limiting raw material imports while incentivizing the import of finished goods. Other industry leaders echoed these concerns, warning that CBAM, conceived as a tax but transformed into a green policy tool, is impractical and will further weaken Europe's position in global trade.

Industry Leaders Call for Pragmatic Solutions

At the same conference, Indian producer Jindal Stainless highlighted India’s dependence on NPI due to rapid industrial growth and a shortage of scrap metal. Ratan Jindal, chairman of the company, pointed out that proposed restrictions on scrap imports, such as the EU Waste Shipment Regulation, will only exacerbate this issue.

The consensus among European stainless steel executives is that CBAM, as it currently stands, is deeply flawed. Spanish producer Acerinox’s CEO, Bernardo Velazquez, stressed the difficulty of applying CBAM uniformly across Europe due to differing national tax systems. Italian steelmaker Marcegaglia’s CEO, Antonio Marcegaglia, criticized CBAM for being limited to early stages of the production cycle and for failing to address the broader economic realities of the stainless steel industry. Dimitri Menecali of Arvedi AST added that without addressing Scope 3 emissions—those created further down the supply chain—CBAM would not effectively promote sustainability.

The industry is calling for more coordinated policies and international alliances to ensure Europe's stainless steel sector remains competitive. As di Maulo stated, “There is a role for industrialization in Europe, in innovation, high performance, and service-oriented materials.”

Alabama Scrap Shredder to Strengthen Outokumpu’s Stainless Recycling Loop

Jefferson Iron & Metal

Alabama scrap shredder investment by Jefferson Iron and Metal Brokerage will create a dedicated scrap processing route inside Outokumpu’s stainless steel mill in Calvert. The $22mn project will support a tighter closed-loop scrap supply system for the Alabama stainless operation.

Alabama scrap shredder capacity is planned at about 9,000 short tons per month. The shredder will process scrap generated at Outokumpu’s mill near Mobile, Alabama, and return the shredded material directly into the plant’s operations.

Alabama scrap shredder development is strategically important because stainless steel mills depend on clean, consistent and efficiently prepared scrap. Better on-site processing can reduce handling costs, improve material control and support higher recycled-content production.

Jefferson Shredding and Recycling, a subsidiary of Alabama-based Jefferson Iron and Metal Brokerage, plans to break ground next month. Operations are expected to begin in August 2027.

On-Site Shredding Improves Scrap Control

The project gives Outokumpu a more direct route for recovering and reusing internal stainless scrap. Instead of moving material through a longer external supply chain, the mill can keep more scrap within its own operating loop.

This matters because stainless scrap contains valuable alloying elements such as chromium, nickel and molybdenum. Preserving those units inside the mill system can improve raw material efficiency and reduce exposure to external alloy and scrap markets.

On-site shredding also supports better quality control. Stainless mills need scrap that is properly sized, separated and prepared for melting. Poorly controlled scrap can create chemistry risk, yield loss and operating inefficiency.

The Jefferson-Outokumpu structure is practical. Jefferson brings scrap processing expertise, while Outokumpu gains a dedicated recycling asset linked directly to its stainless production base.

Closed-Loop Recycling Supports US Stainless Competitiveness

The Calvert mill is one of the most important stainless steel assets in the US. Adding dedicated scrap processing strengthens its ability to compete in a market where recycled content, cost control and supply security are increasingly important.

Stainless steel recycling is already a major advantage for the sector. But the value rises when mills can shorten the route between scrap generation, preparation and remelting.

The project also fits wider trends in US metals manufacturing. Producers are trying to localise feedstock, reduce waste, lower logistics exposure and improve traceability.

For Jefferson, the investment expands its role from scrap broker and recycler into an embedded processing partner for a major stainless producer. For Outokumpu, the shredder improves scrap circularity and gives the mill more control over internal material flows.

The 2027 start-up timeline means the project will not affect near-term stainless supply. But once operational, it should strengthen the Calvert site’s raw material flexibility and recycling efficiency.

The Metalnomist Commentary

The Jefferson-Outokumpu project shows that recycling advantage is increasingly built inside the mill gate. In stainless steel, controlling scrap chemistry, size and flow can be as important as securing primary alloy inputs.

Aperam Stainless Steel Earnings Fall as Weak European Pricing Hits Margins

Aperam, Stainless Steel

Aperam stainless steel earnings fell sharply in 2025 as weak prices overwhelmed stable shipment volumes. The group’s adjusted Ebitda dropped in the fourth quarter and declined for the full year. Stainless steel prices remained under pressure across Europe. As a result, Aperam stainless steel earnings reflected margin compression rather than volume weakness.

The company shipped 2.287mn t across all divisions in 2025, broadly unchanged from 2024. However, net income collapsed to €9mn from €231mn. Lower margins, restructuring costs, and higher financing expenses weighed heavily on results. Therefore, stable shipments could not protect profitability.

European Stainless Steel Demand Remains the Main Pressure Point

European stainless steel demand remained subdued through the year. Aperam’s stainless and electrical steel shipments improved in the fourth quarter. However, price erosion more than offset that seasonal recovery. Consequently, adjusted Ebitda in the segment fell sharply.

Average stainless selling prices were 16pc lower year on year in the fourth quarter. Competitive import pressure also added stress to European operations. Low capacity utilisation made the situation worse. Therefore, stainless steel prices remain the key challenge for Aperam.

Aperam 2026 Outlook Depends on Cost Savings and Trade Defence

Aperam 2026 outlook looks more constructive, but recovery will likely be gradual. The company expects first-quarter Ebitda to improve from the fourth quarter. Cost efficiencies and early trade-defence benefits should provide support. As a result, margins may begin stabilising.

The company also launched Leadership Journey Phase 6. This programme targets €150mn of additional gains from 2026 to 2028. Meanwhile, European trade defence and CBAM-related changes may support the second half of 2026. Therefore, Aperam stainless steel earnings could improve if policy support meets real demand recovery.

The Metalnomist Commentary

Aperam’s results show that European stainless producers still face a pricing problem, not a shipment problem. Cost cuts can help, but sustainable recovery needs stronger demand and better import discipline. The second half of 2026 may become the real test for margin recovery.

Aperam Recycling North America Names Evan Dyal as New Chief Executive

Aperam Recycling

Aperam Recycling North America will move into new leadership on 1 July as Evan Dyal succeeds Chris Niles as chief executive of the company’s regional operations. The appointment places a long-serving ELG Metals USA executive at the head of Aperam’s North American recycling platform.

Aperam Recycling North America is strategically important because stainless steel producers increasingly rely on high-quality scrap flows to manage costs, improve circularity and support lower-carbon production. Leadership continuity matters in a market where scrap sourcing, customer relationships and alloy knowledge are critical.

Dyal is currently general manager of Aperam Recycling’s Mobile, Alabama, location. He has spent more than 18 years with Aperam subsidiary ELG Metals USA, giving him deep operational experience in specialty metals recycling.

Chris Niles will leave the company after 25 years. His departure marks a leadership transition for a business tied closely to stainless steel, nickel-bearing scrap and specialty alloy supply chains.

Leadership Continuity Supports Stainless Scrap Strategy

Aperam’s choice of Dyal signals a preference for internal continuity. Recycling operations depend heavily on supplier networks, material knowledge and disciplined quality control.

This is especially important in stainless steel recycling. Scrap streams can contain nickel, chromium, molybdenum and other valuable alloying elements, making accurate sorting and processing essential.

North American stainless scrap supply remains strategically valuable as mills seek more recycled units and lower-carbon feedstock. Processors that can secure clean, reliable and specification-ready scrap will remain important to stainless producers.

Dyal’s Mobile experience gives him direct exposure to yard operations, logistics, supplier management and customer requirements. That operational background should support Aperam Recycling North America as competition for quality scrap intensifies.

Commercial Role Strengthens Regional Customer Focus

Aperam also promoted Andres Montes to chief commercial officer of North America. Montes currently leads specialty sales for the region.

The appointment adds commercial focus alongside the leadership change. Specialty sales are important because stainless and alloy scrap markets require close coordination between processors, mills, traders and industrial customers.

This matters as recycling becomes more central to metals procurement. Buyers increasingly want traceable scrap supply, reliable chemistry and stable delivery into melt shops.

For Aperam, strengthening North American leadership and commercial coverage supports its broader circular metals strategy. The company’s recycling platform can help secure feedstock, improve value capture and support lower-emission stainless production.

The Metalnomist Commentary

Aperam’s leadership change is small in size but meaningful in direction. Stainless steel recycling is becoming more strategic, and experienced operators with alloy scrap knowledge will matter more as mills compete for cleaner recycled feedstock.

EU sets ferro-alloy, stainless steel CBAM benchmarks for 2026–2030 imports

CBAM, Stainless Steel

The European Union sets ferro-alloy, stainless steel CBAM benchmarks to shape 2026 import liabilities. EU sets ferro-alloy, stainless steel CBAM benchmarks using provisional values tied to production periods. As a result, importers can estimate deductions from free allocation benchmarks once charges begin in 2026.

The provisional benchmark reduces CBAM liability by deducting a free-emissions allocation. Meanwhile, the draft applies charges only to direct process emissions at first. It excludes energy-source emissions from the early ferro-alloy and steel scope.

The draft splits ferro-alloy benchmarks into 2026–2027 and 2028–2030 values. Therefore, suppliers face a tightening standard after 2027. EU sets ferro-alloy, stainless steel CBAM benchmarks with lower values in 2028–2030.

Ferro-alloy benchmarks tighten after 2027 across key products

Ferro-chrome receives a benchmark of 2.005 tCO2 per tonne for 2026–2027. It then drops to 1.881 tCO2 per tonne for 2028–2030. Meanwhile, the draft applies the same values across low- and high-carbon ferro-chrome classes.

Ferro-manganese receives a benchmark of 1.397 tCO2 per tonne for 2026–2027. It then falls to 1.31 tCO2 per tonne for 2028–2030. Therefore, exporters must document process efficiency to protect netbacks.

Ferro-nickel carries the highest benchmark among the listed ferro-alloys. It starts at 3.376 tCO2 per tonne for 2026–2027. It then declines to 3.167 tCO2 per tonne for 2028–2030.

Stainless steel benchmarks add defaults and a process-data option

Stainless steel receives more benchmark values because products vary widely. Cold-rolled stainless flat products carry a default of 2.152 tCO2 per tonne for 2026–2027. The default drops to 2.047 tCO2 per tonne for 2028–2030.

Hot-rolled stainless flat products carry a default of 2.021 tCO2 per tonne for 2026–2027. The default drops to 1.92 tCO2 per tonne for 2028–2030. Meanwhile, the draft adds process-related benchmarks when importers provide verified actual data.

Cold-rolled stainless adds a process-related benchmark of 0.165 tCO2 per tonne for 2026–2030. Hot-rolled stainless adds a process-related benchmark of 0.11 tCO2 per tonne for 2026–2030. Therefore, strong measurement and reporting can lower default exposure.

The Metalnomist Commentary

These benchmarks will reward producers that can prove direct emissions with audited data. Meanwhile, stainless importers will gain leverage by replacing defaults with verified process figures. Therefore, exporters should invest now in MRV systems and product-level carbon accounting.