What is Nova Hut investing in and why does it matter?

Nova Hut, formerly Liberty Ostrava, plans to spend US$73 million on a 1.5 MTPA electric arc furnace. This adds lower‑emission capacity in Europe. It supports EU steel decarbonization and may lift regional scrap demand. For Australian investors, it signals medium‑term shifts in spreads, power needs, and trade flows.

How could this affect Australian scrap exporters?

If European mills raise scrap use, bids for cleaner grades can firm. Australian exporters that offer quality assurance, sorting tech, and reliable shipping can benefit. Freight, grade consistency, and timing still decide margins, so logistics and certification may matter as much as headline prices.

Why are electricity prices important for EAF projects?

Electric arc furnaces rely on power. High or volatile electricity prices can erode margins and reduce run‑rates. Mills often seek renewable power contracts to stabilise costs. Investors should watch EU power forwards, contract announcements, and grid upgrades to gauge utilisation and profitability prospects.

What is CBAM and why is it relevant here?

The EU’s Carbon Border Adjustment Mechanism phases in from 2026. It applies a carbon‑related levy on certain imports, including steel. Producers that cut emissions, such as EAF‑based mills, may hold a cost edge. Tracking CBAM rules helps investors assess which routes gain or lose share in EU markets.

Global Market Insights

February 10: Czechia’s Nova Hut to Spend $73M on 1.5 MTPA EAF

ByHuzaifa Zahoor February 10, 2026February 10, 2026

Czechia steel investment is back in focus after Nova Hut, formerly Liberty Ostrava, said it will spend US$73 million on a 1.5 MTPA electric arc furnace. That is about A$111 million at a 0.66 AUDUSD rate. This move adds lower‑emission capacity in Europe and supports EU steel decarbonization. For Australian investors, the news matters for scrap demand, energy pricing, and export flows. We explain how this project could influence ASX scrap recyclers, steel producers, and commodity spreads through 2026.