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    Analysis

    February 10, 2020

    Europe Challenges Automakers with Emission Reduction Goals

    Written by Sandy Williams

    Automakers are being challenged to put their best vehicles forward in the fight against climate change. Europe’s new emissions regulations for passenger and light commercial vehicles went into effect as of Jan. 1 this year. Going forward, auto manufacturers selling cars in the EU will work toward a 15 percent reduction of CO2 emissions by 2025 and a 37.5 percent reduction by 2030. Miles per gallon (as converted from kilograms per mile) would translate to 77 mpg in 2025 and 105 mpg in 2030, starting from a baseline of 65 mpg. The targets for light commercial vehicles are reductions of 15 percent in 2025 and 31 percent in 2030.

    Incentives in the form of relaxed CO2 targets will be given to automakers that increase their share of registered zero- and low-emission vehicles (ZLEV) in a given year to 15 percent beginning in 2025 and to 35 percent as of 2030. For every 1 percent over the ZLEV target, 1 percent will be reduced from the CO2 emissions requirement, up to a cap of 5 percent. The CO2 targets for individual manufacturers are adjusted for the average vehicle weight of their fleet, with heavier vehicles allowed a higher CO2 level.

    Sandy Williams

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    Market chatter: Supply, not price, dominates steel buyers’ concerns

    On Monday and Tuesday of this week, SMU polled steel buyers on an array of topics, ranging from market prices, demand, and inventories to tariffs, imports, and evolving market events. We are sharing a selection of the comments we received below, in each buyer’s own words. Before diving in, we reviewed all the responses collected and compiled these key takeaways: Respondents overwhelmingly anticipate further increases. Buyers cite limited supply, mill delays, low inventories, and steady-to-strong demand. Most say demand is generally stable to improving, with some purchasing driven by fears of higher prices or unavailable material rather than stronger underlying consumption. Most respondents report faster inventory turnover, while shortages are constraining sales and, in some cases, prompting customer allocations. Buyers increasingly see imports as a way to secure scarce material, though domestic-origin requirements, delivery timing, and pricing risks remain obstacles.

    Sheet prices surge as ’26 market squeeze spills into ’27

    Sheet prices soared this week as market participants increasingly predict that the strong market characterizing 2026 will stretch well into 2027. And with extremely limited spot availability, mills that have spot tons to sell are charging a significant premium, they said. The result: Sheet prices saw their highest week-over-week gains since March 2025, according to SMU's pricing records. That's when President Trump shocked the market by expanding Section 232 tariffs to cover traditional US allies such as Canada, Mexico, and the EU.

    Ferrous scrap prices seen rising in November

    Most SMU scrap sources are predicting a stronger scrap market for November. The increase in prices is generally thought be $20-30 per gross ton (gt) in most districts. However, there are differences of opinion about the upcoming price settlements. SMU spoke with a trading source in the Great Lakes region who told us mills in the Eastern Ohio and Western Pennsylvania regions are short on scrap. At least one buyer is offering to buy scrap at a $30/gt increase from October levels. He said most dealers have elected to wait to see where things settle before making commitments.