[SMM Steel] India Export Market Holds Firm, but September Europe Shipments Face Quota Pressure

Spanish steelmakers have begun temporarily halting output during peak electricity price hours as sharply higher energy costs hit the sector, industry association UNESID said. UNESID estimates extra energy costs of about 749 million USD (658 million EUR) between March and December 2026, of which some 514 million USD (452 million EUR) falls in September-December, versus 206 million EUR accumulated through August. Electricity accounts for about 459 million USD (403 million EUR) and gas for some 290 million USD (255 million EUR). Adjustment services add around 23 USD/MWh (20 EUR/MWh), pushing mills to halt production in the costliest hours; curtailments may grow if prices persist. Q4 electricity is forecast at about 163 USD/MWh (143 EUR/MWh) and gas at 86 USD/MWh (76 EUR/MWh). UNESID urges immediate government measures, including higher compensation for indirect carbon costs and continued grid-charge relief for energy-intensive industries. About 70% of Spanish steel output is exported, two-thirds to other EU markets.

The federal and South Australian governments last year committed 1.6 billion USD (2.4 billion AUD), since raised to about 1.9 billion USD (2.9 billion AUD), to rescue the Whyalla steelworks and fund a green steel future. Last week's confirmation that the blast furnace cannot be saved, though painful for the 500 current employees, shifts focus to that future. Whyalla is among Australia's last integrated iron and steel operations; losing the furnace removes domestic ironmaking capacity and deepens reliance on imported semi-finished steel. The bet rests on hydrogen-based direct reduced iron and electric arc furnace capacity, backed by public funding, renewable power and magnetite ore. Supporters argue the transition is worth the cost; critics doubt green steel can compete on cost.

Raghav Productivity Enhancers (RPEL) has incorporated RPEL TRLK Silicatech Private Limited at Jharsuguda, Odisha, an 80:20 JV with TRL Krosaki Refractories Limited (TRLK). The JV will build a 350,000-tpa silica ramming mass plant at an initial outlay of about 11.4 million USD (1 billion INR), funded by debt and equity. The site adjoins India's largest steel and refractory cluster; feedstock comes from TRLK's captive quartzite mines at Chhuinpali while RPEL supplies patented processing technology and earns IP royalties. The project lifts RPEL's existing group capacity of 534,000 tpa by 65.5%. Its subsidiary won two 20-year Indian patents in September 2026. RPEL's FY26 standalone turnover was 29.2 million USD; Q1 FY27 net profit rose 67.55% y-o-y to 2.22 million USD on revenue up 48.72% to 9.88 million USD.