Day: 6 July 2020

Global stainless steel meltshop production declined -8% on-year in the first quarter to 11.7 million tonnes, according to International Stainless Steel Forum (ISSF) figures.

Output declined in all regions, with the US recording the steepest fall of -10.9% to 627,000t. Europe saw output fall -6.3% to 1.78mt, while in China it declined -9% to 6.08mt and in Asia without China and South Korea by -3.8% to 1.89mt.

Compared to Q4 2019, global stainless output fell -6% in Q1. However, it rose 13.1% and 9.1% in Europe and the US respectively.

The Bureau of International Recycling (BIR)’s Stainless Steel & Special Alloys Division revealed in last month’s webinar that global stainless steel demand is expected to slump -12% on-year in Q2 to 11.9mt.

A dramatic slump in demand and the effects of the coronavirus pandemic saw passenger car production in Germany in the first half of 2020 fall to its lowest level in 45 years, says carmakers association VDA.

Amid disruption of supply chains and production stoppages, some 1.5 million vehicles were made at German locations from January to June, -40% less than in the same 2019 period, Kallanish hears from VDA. The association expects a slow recovery in the second half of the year, so that the drop for the full year is anticipated to be -25%, totalling 3.5 million units. Exports from Germany are expected to fall by -27% in 2020; in the first six months of the year they were down -40% to 1.1 million units.

VDA president Hildegard Müller highlighted the progress made by the industry in digitalisation and new e-mobility. VDA member companies are investing €50 billion ($55 billion) in new drive systems and a further €25 billion in digitalisation until 2024.

“We need an intelligent mix of offers: from battery electric cars to economical and low-emission vehicles with ultra-modern gasoline and diesel engines,” said Müller. The plug-in hybrid, in particular, offers enormous opportunities, Müller noted. “It combines the best of two worlds – emission-free driving on short and medium distances, with the necessary and efficient range, also on long distances.”

ArcelorMittal Italia is implementing a new logistics project for its Genova plant, using railway transport to deliver up to 2,000 tonnes of coils to its Italian customers, Kallanish learns from the company.

During the lockdown between March and May the company carried out a feasibility study and commenced a project of latest generation commercial trains for coils transport. The first train left on 21 May and delivered a cargo of 1,400t to Padua.

After initial trials, the trains are now running regularly every week with the target to expand the system and connect Genova with more cities and regions in northern Italy. “The idea is to add one more region per month so that by November the project may be completed and 74% of Genova shipping is carried out by railway,” the company says in a note sent to Kallanish.

The final objective is to redesign and modernise national distribution using efficient logistics models to offer clients an effective a door-to-door service, the firm explains. Using trains instead of trucks will also help cut CO2 emissions, it adds.

The UK government has provided an emergency loan to Celsa Steel (UK) Ltd to allow the company to continue trading. The agreement safeguards over 1,000 jobs, including more than 800 positions at the company’s main sites in South Wales.

As part of the loan, which is expected to be repaid in full, the company must meet a series of legally-binding conditions. These include commitments to protect jobs, climate change and net zero targets, improved corporate governance, such as restraints on executive pay and bonuses, and tax obligations. Also required are further financial commitments from shareholders and existing lenders.

Although the government did not specify the value of the loan, it is widely reported to be £30 million ($37m).

General Secretary of steelworkers’ trade union Community Roy Rickhuss says: “We’ve said since the start of this crisis that we need our industry to survive the pandemic and then thrive in the future so it can be at the foundation of the recovery. This agreement with Celsa Steel is a vital part of ensuring that can happen and will help to provide some certainty and confidence at a challenging time. We hope this is just the start of steel companies securing the support from government that they need to get through this crisis.”

However, he adds: “The loans are necessary but alone are not enough. More will need to be done by government to step up and stimulate demand and to make sure that works for UK steel producers. Celsa can play an important role in supplying steel for major infrastructure projects but it needs the right environment in which to compete and the right procurement decisions which keep the most value and jobs in the UK.”

Reports last month suggested the UK government was reported to be close to agreeing large loans to local steelmakers Celsa and Tata Steel (see Kallanish passim).

The scrap forward curve on the London Metal Exchange softened across June-September contracts during the week to July 2, on market expectations of a near-term downside in spot physical scrap prices.

The forward curve shifted into a slight backwardated structure over the week to July 2, sustaining minimal losses.

July LME scrap futures contracts were down $1/mt over the week to $260/mt on July 2. August and September contracts were both down $2/mt to $259.50/mt, with the relatively flat curve signaling trader hesitation over future pricing direction.

Spot prices for physical imports of premium heavy melting scrap 1/2 (80:20) remained stable week on week at $255/mt CFR Turkey July 2.

“Perhaps $250/mt CFR for premium 80:20 material is disputable, as it depends on the US guys, and Turkish mills have shown interest at current levels with the US deal at $256/mt CFR, so I don’t expect a major drop,” an EU recycler said. Sources expect most Turkish mills to return to the market soon to buy scrap for August shipment.

Scrap futures trading volumes over the week to July 2 sat at 13,140 mt, down from 61,650 mt the previous week.

The June-September rebar forward curve shifted into a soft contango over the week to July 2, with July and August rebar futures contracts at $419/mt respectively, with July down by $2/mt and August up by $2/mt week on week.

The September contract was assessed at $420.5/mt, falling $1/mt on the week, while October contracts were lower at $417.50/mt on July 2.

Physical rebar demand remained weak in North and East African markets, while East Asia enters the rainy season, indicating a slowdown in buying for Turkish material.

S&P Global Platts assessment of Turkish exported rebar was down $4.50/mt over the week at $410/mt FOB Turkey July 2.

Rebar futures weekly trading volumes this week on the London Metal Exchange totaled 4,860 mt, down from 13,440 mt recorded in previous week.

The Turkish longs melting margin — the spread between Turkish exported rebar and import scrap – dropped $4.50/mt on the week to $155/mt July 2.

— Amanda Flint, Viral Shah

German plate maker Dillinger is supplying 47,000 mt of plate to the Arcadis Ost offshore wind energy project, parent company Stahl-Holding Saar said July 3.

Dillinger will be providing heavy plates for the production of monopiles for the wind farm, off the coast of the German state of Lower Saxony. Production will start in 2021.

The project is a joint undertaking between Dillinger subsidiary Steelwind Nordenham, a monopile manufacturer, and Parkwind, a developer of offshore wind farms.

“We believe the signing of this agreement sends a strong positive message in the difficult context of COVID-19. The impact of this contract fits into EU’s Green Deal initiative and demonstrates the offshore industry’s role in helping Germany reach its ambitious CO2 reduction targets as well as in stimulating the economy and local employment under the particularly difficult conditions of COVID-19,” Arcadis Ost 1 project manager, Clément Helbig de Balzac from Parkwind, said.

The supply deal for Dillinger comes at a time when the pandemic has dealt a hammer blow to European plate demand.

Most German plate mills are currently working at reduced rate, with workers on short-time, where the German government gives financial aid to companies as they run limited shifts.

“If the market does not come back to life and investments are not going to be unlocked, then it [the situation] is going to become critical for a lot [of plate mills]. It is possible that a lot of integrated mills will not be able to cope in the long term with current raw material costs and today’s market environment. Few inquiries, even fewer orders,” a German plate mill source said.

— Laura Varriale

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Nach dem leichten Anstieg im Mai verbesserten sich im Juni die Erwartungen der deutschen Zulieferindustrie mit Blick auf die nächsten sechs Monate sprunghaft. Der Saldo aus Optimisten und Pessimisten stieg von -33,8 auf -1,6 Punkte an und liegt damit nun nahe der Nulllinie. Dies ist der stärkste jemals gemessene Anstieg und zeigt, dass die Zahl der Zulieferer, die für die kommenden Monate mit stabileren Geschäftsaussichten rechnen, zugenommen hat. Andererseits wird die aktuelle Lage von den Unternehmen weiterhin als schlecht eingestuft. So sank der Saldo erneut deutlich um 4,6 Saldenpunkte auf – 53,1 Punkte. Damit hat sich die Bewertung der aktuellen Geschäftslage auf ein neues Rekordtief seit der Finanzkrise verschlechtert. Der Tiefpunkt lag im April 2009 bei einem Saldo von – 62,9 Punkten.

In der Gesamtbetrachtung zeigt sich ein besseres Stimmungsbild als in den vergangenen Wochen während des Lockdowns. Denn das Geschäftsklima der Zulieferindustrie hat sich im Juni von -41,3 auf -29,3 Punkte verbessert. Das verabschiedete Konjunkturpaket der deutschen Bundesregierung sowie die schrittweisen Lockerungen der Corona-Beschränkungen haben sicher einen Teil dazu beigetragen. Generell befindet sich die Stimmung jedoch weiter auf sehr niedrigem Niveau. Auch mit Blick auf die insgesamt schwache Auftragslage und die daraus folgenden Kapazitätsanpassungen in Form von Kurzarbeit dürfte nur mit einer langsamen Erholung zu rechnen sein.

Quelle und Grafik: ArGeZ Arbeitsgemeinschaft Zulieferindustrie

Der 1.111. NORDWEST-Handelspartner ist das Unternehmen F.W. Waldhausen GmbH & Co. KG aus Übach-Palenberg bei Aachen. Das Familienunternehmen wird bereits in zweiter Generation erfolgreich von Hans-Hartmut Waldhausen und seiner Schwester Renate Waldhausen-Krick geführt. Mit Carsten Waldhausen und Edgar Krick steht bereits die dritte Generation in den Startlöchern. Über 50 Mitarbeiter sind an den Standorten Hückelhoven (Einzelhandel), und Übach-Palenberg, dem Hauptsitz mit dem Baustahlhandel und dem eigenen Biegebetrieb sowie einem weiteren, größeren Einzelhandel, beschäftigt. Zudem gibt es ein Stahlaußenlager in Wismar, von dem aus die Kunden bundesweit beliefert werden, einen Online-Shop und eine Barbecue-Abteilung, die mit 60 verschiedenen Marken die größte Vielfalt in der Euregio anbietet.

Vor über einem Jahrzehnt war der Stahlhändler, der zudem Bauelemente und Eisenwaren in seinem Portfolio anbietet, schon einmal Handelspartner von NORDWEST. Jetzt hat sich die Geschäftsführung entschieden zurückzukehren. „Uns haben definitiv die neuen Konzepte, die viel frischen Wind mitbringen, überzeugt. Und auch eine vertrauensvolle Zusammenarbeit auf Augenhöhe ist uns mit dem Stahlteam rund um Claudio Kemper und Christopher Rüther wichtig“, berichtet Carsten Waldhausen, „deswegen war es für die Geschäftsführung und auch für mich der richtige Schritt, die Zusammenarbeit erneut aufzunehmen.“

Bei NORDWEST freut man sich sehr über die Neuaufnahme und Rückkehr in den Verband, die zudem durch die Zahl 1.111 einen starken Symbolcharakter hat. „Wir freuen uns auf die Zusammenarbeit und sind stolz, dass uns Familie Waldhausen ihr Vertrauen schenkt“, so die Vorstände Andreas Ridder und Jörg Simon.

Quelle: NORDWEST Handel AG / Fotos: Waldhausen/Jenö Gellinek photography