SMM High-Grade NPI Sentiment Index Dips, Market Tension Persists Amid Sluggish Transactions

A written parliamentary question posed to the European Commission asked: "What monetisable compensation does the Commission envisage for downstream producers whose embedded costs originate upstream, and who do not qualify for the decarbonisation fund?" Commissioner Hoekstra's July 14 response offered no direct answer, pointing instead to the Temporary Decarbonisation Fund — designed primarily for large EU ETS installations — with a vague note that it "may also decrease associated downstream costs," with no obligation, guarantee, or figure attached. Critics note that large integrated steelmakers benefit from multiple layers of protection including tariffs, quotas, free ETS allowances, and decarbonisation funding, while import-dependent SMEs and downstream processors face rising procurement costs, CBAM obligations, quota cuts exceeding 45%, and heavy administrative burdens — with no cumulative impact assessment ever published by the Commission. Meanwhile, steel import quota data remains poorly updated, with the Commission confirming it will update TRQs only once daily with no real-time data, and declining to recognize the "Total awaiting allocation" figure as legally binding.

Finland-based stainless steel producer Outokumpu has awarded Primetals Technologies an order to upgrade a ladle treatment stand at its Calvert, Alabama plant to a 180mt twin ladle furnace, with startup scheduled for March 2028. Replacing equipment commissioned in 2012, the new furnace will provide electrical heating following the AOD converter, improving temperature control, process flexibility, and productivity while reducing energy consumption and carbon footprint, utilizing the existing plant layout and foundations. The scope covers mechanical and electrical equipment, automated argon lancing, hydraulic systems, Level 1 automation, and the Primetals Melt Expert electrode control system. Outokumpu's Calvert facility currently melts up to 100% stainless steel scrap in a 160mt electric arc furnace before processing in a 180mt AOD converter, with two ladle treatment stands and a single-strand slab caster.

Chinese Taiwan's stainless steel industry showed divergent trends in June, with import volumes surging 24% MoM to 120,500 tons — a two-year high — while exports slipped below the 70,000-ton threshold to 68,100 tons, down 11.9% from May. Despite the volume contraction, pricing showed strength: the export price rose more than NT$450 MoM to its highest level since February last year, while the import price climbed over NT$1,800 MoM to a two-and-a-half-year high. For H1 as a whole, total import volumes of approximately 581,000 tons exceeded cumulative export shipments of 414,200 tons, reflecting that while mills succeeded in pushing prices higher, achieving simultaneous growth in overseas shipment volumes remained a challenge.