Steel
Overview
The price indices in our Argus Ferrous Markets and Argus Global Steel services are widely used by companies in physical supply contracts around the world – for iron ore, coking coal, hot-rolled coil (HRC) and ferrous scrap.
Many of them are used as the settlement prices for cash-settled futures contracts launched by exchanges to allow users of the derivatives who also transact in the physical market to minimize basis risk while hedging. These cash-settled monthly futures contracts are settled against the arithmetic mean of all the published Argus prices during each calendar month.
Using indices allows companies to trade material on an index-linked basis, not only via fixed-prices sales. This offers significant advantages when prices are volatile, yet the modern finished steel market remains primarily transacted on a fixed price basis. The addition of futures markets offers opportunities to enhance supply chain resilience further.
Latest steel news
US inflation up to 2.4pc in May, energy down
US inflation up to 2.4pc in May, energy down
Houston, 11 June (Argus) — US inflation ticked up to an annualized 2.4pc in May as core inflation remained unchanged, a sign US president Donald Trump's shifting tariff policies have yet to meaningfully impact prices. The consumer price index rose from an annual 2.3pc in April, the Bureau of Labor Statistics reported Wednesday. Analysts surveyed by Trading Economics had forecast a gain of 2.5pc. Core inflation, which strips out volatile food and energy prices, rose by 2.8pc over the 12-month period, unchanged from the prior month. The energy index contracted by 3.5pc for the 12 months compared with a 3.7pc contraction through April. The CME's FedWatch tool shows 99.9pc probability the Federal Reserve will hold its target rate unchanged at 4.25-4.5pc at its meeting next week, compared with 97.3pc Tuesday, and as much as a 67pc chance of a likely cut in September. The Fed has said it will monitor the evolving impacts of Trump's tariff, fiscal and other policies on prices and the broader economy before resuming its course of rate cuts, on pause since December. The food index rose by 2.9pc over the past year, quickening from 2.8pc in the 12 months through April. Services less energy services, viewed as a core services measure, rose by 3.6pc in the 12 months through May, unchanged from April. Gasoline fell by 12pc over the 12-month period through May while piped gas services rose by 15.3pc. Shelter rose by an annual 3.9pc. New vehicles rose by an annual 0.4pc. On a monthly basis, CPI rose by 0.1pc in May following a 0.2pc gain in April and a 0.1pc contraction in March. Shelter rose by 0.3pc for the month, leading the overall monthly gain. By Bob Willis Send comments and request more information at feedback@argusmedia.com Copyright © 2025. Argus Media group . All rights reserved.
N EU HRC market anticipates price rise/import surge
N EU HRC market anticipates price rise/import surge
London, 11 June (Argus) — North European hot-rolled coil (HRC) prices are expected to increase later this year, as buyers move early to avoid anticipated supply-side constraints. Europe's carbon border adjustment mechanism (CBAM) will increase the cost of imports from January 2026. There are unconfirmed reports that the commission will set the CBAM benchmark for blast furnace-based imports at 1.4t. If true, this would add nearly €53/t to the cost of importing HRC with a carbon intensity of 2.1t, assuming a carbon cost of €72.07/t. The commission will also provide more clarity around its proposed melt-and-pour clause in the third quarter. Should this be imposed in the first half of 2026, it will increase the cost of importing cold-rolled coil (CRC) and hot-dip galvanised. Legal sources suggest that the commission could mandate payment of anti-dumping duties for those that continue to use Chinese substrate. For example, if a re-roller buys Chinese HRC, processes it into CRC and sells it in the EU, it may be liable for the dumping duties currently in place on Chinese HRC, the lowest of which is around 18.1pc. This would not necessarily reduce EU imports of downstream products, and is hard to enforce, but could raise the floor price as re-rollers source more domestically. There will also be changes made to the current steel safeguard, which lapses in June 2026. European steel association Eurofer wants the safeguard to be replaced as early as January 2026 to reduce import penetration, and given the risk of supposed trade diversion from the US where tariffs have now been increased to 50pc for most exporters. Eurofer has been outspoken in its demand for a 50pc cut in imports, to realign market share with historical norms. It is not clear if the commission will acquiesce to this request, but officials have already stated that the new measure will be stricter than the current mechanism. However, some suggest a pre-emptive import surge — as traders race to clear customs before costs rise — could increase supply rapidly in a subdued demand environment. A number of traders have openly admitted to trying to import substantial quantities for fourth-quarter clearance to beat the CBAM and any other potential tariffs. Whatever regulatory obstacles may appear, demand is still the major issue for the steel supply chain. There is potential demand upside from German stimulus efforts, and should wider geopolitical uncertainty ease this year. EU industrial production has started to grow of late, after years of decline, and German manufacturing inventories and new orders are trending the right way too — stocks are falling from high levels, and new orders are contracting less than before. But slower economic growth and rising trade uncertainty also pose downside demand risks — for example, automotive companies and their supply chains are currently grappling with production issues because of reduced Chinese rare earth exports . Should trade tension increase, there is a risk of further supply-side constraints impacting steel-using sectors. By Colin Richardson Send comments and request more information at feedback@argusmedia.com Copyright © 2025. Argus Media group . All rights reserved.
Australia’s Roy Hill, Atlas Iron to merge in July
Australia’s Roy Hill, Atlas Iron to merge in July
Sydney, 11 June (Argus) — Australian iron ore producers Atlas Iron and Roy Hill will merge to form Hancock Iron Ore on 1 July, while maintaining product specifications and honouring existing agreements, the firms announced on 10 June. The consolidation will not affect customer, vendor, or partner contractual obligations, Hancock Iron Ore told investors on 10 June. Roy Hill and Atlas Iron export a combined 74mn t/yr of iron ore. The two companies shipped 1.5mn t and 439,514t of ore out of Western Australia respectively over the week to 24 May, accounting for 9.4pc of the region's exports. Atlas Iron and Roy Hill already collaborate on mining projects. Atlas Iron announced plans in 2021 to move ore mined at its developing McPhee iron ore mine to Roy Hill for processing once production begins. Hancock Iron Ore will produce 8mn t/yr of ore at McPhee from the 2026-27 financial year to 30 June. Atlas Iron originally expected to mine 14mn t/yr of ore from the site beginning in 2023, but faced delays. Australian mining magnate Gina Reinhart holds a majority stake in both Atlas Iron and Roy Hill through resources firm Hancock Prospecting. Taiwanese steelmaker China Steel, South Korean steelmaker Posco and Japanese firm Marubeni each own smaller stakes in Roy Hill. Hancock Prospecting bought Atlas Iron , which was then a struggling, lower-grade ore producer, for A$390mn ($254mn) in 2018, outbidding Australian producer Mineral Resources. By Avinash Govind Send comments and request more information at feedback@argusmedia.com Copyright © 2025. Argus Media group . All rights reserved.
Japan's Kobelco to use torrefied biomass in steelmaking
Japan's Kobelco to use torrefied biomass in steelmaking
Tokyo, 10 June (Argus) — Japan's Kobe Steel (Kobelco) plans to use torrefied wood pellets in steelmaking and has entered into an agreement with Mitsubishi UBE Cement (MUCC) to source the biomass fuel. This move underscores the rise in usage of torrefied or carbonised biomass for the steel and metal industries as the non-power sector is increasingly looking at options to cut its carbon footprint. The demand for torrefied or carbonised biomass by steel and metal companies is expected to grow in Japan as well as globally, and could increase competition with the power sector for biomass supplies. Kobe and MUCC agreed in May to conduct a feasibility study on torrefied wood pellets and aim to set up a joint venture for this project in 2026, the companies told Argus . MUCC has developed torrefaction technology to produce torrefied wood pellets, which are also called black pellets. Torrefied wood pellets have a higher calorific value than normal biomass fuels including typical wood pellets. They have better water resistance and grindability compared with typical wood pellets. They also share key characteristics with coal and can be handled like coal. MUCC has a production capacity of 60,000 t/yr in its Ube factory. MUCC's black pellets have been co-fired with coal in its thermal power plant since 2019. Normal wood pellets imported from Canada are used as feedstock to produce the torrefied wood pellets. Kobelco plans to use MUCC's torrefied wood pellets in steelmaking at its blast furnace in the Kakogawa steelworks, but the company did not elaborate further. The black pellets could be used instead of ground coal at the plant to provide heat, but may not be utilised as a major carbon source to replace coking coal as a reducing agent. The torrefied wood pellets could also be burned for power generation at the steel mill. The joint venture between Kobelco and MUCC may build factories to produce torrefied wood pellets in southeast Asian and other countries in the future. The pellets could be sourced back to Japan, and also sold commercially to other companies. By Takeshi Maeda Send comments and request more information at feedback@argusmedia.com Copyright © 2025. Argus Media group . All rights reserved.
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