Day: 3 May 2021

Steel distribution group Klöckner & Co, which in the first quarter benefited massively from strong demand and prices, attributes its good performance also to progress with digitalisation. Digital sales share in overall sales increased by ten percentage points year-on-year to over 45%, compared with 35% in the first quarter of 2020, Kallanish hears.

Kloeckner Assistant, an AI-driven software application for automated processing of quote requests and orders, has in just one year automatically processed around half a billion euros ($605 million) in sales. About €200m was in the first quarter of 2021 alone. Together with the Klöckner & Co online shops, which now have over 65,000 registered customers and over half a million annual log-ins, the tools have digitalised large sections of Klöckner’s sales processes.

Xom Materials, the independent online steel market platform initiated by Klöckner, made progress especially with its eProcurement solution, which it rolled out in the USA and Latin America during Q1. Gross merchandise volume (GMV) – the value of all products sold on the platform – came to around €150m in Q1, Klöckner states.

The Surtsey project launched by the company last year to accelerate its digital transformation generated restructuring effects to the value of around €20m in Q1. It is expected to contribute over €100m to earnings in the full year. “This allows us to benefit even more strongly from the positive market environment,” says outgoing ceo Gisbert Rühl.

Christian Koehl Germany

Stainless steel coil prices in Europe are seen increasing again, possibly by a further €100/tonne ($120), in the coming weeks. This is on account of extremely tight supply and spiking nickel prices that should push up alloy surcharges in May, market participants tell Kallanish.

The news of the cancellation of Chinese tax rebates has caused an “earthquake” in the global market for stainless steel coil, sources say. Other Asian countries together with China are cancelling negotiations for stainless coils with western buyers. One producer in Indonesia is said to be mulling a $200/t increase for coil.

The reduced offer volume from Asia adds to expected new European safeguard measures on Indian and Indonesian stainless cold rolled coil, leaving Western buyers grappling with short supply. “CRC, at the moment, is impossible to find,” a source comments.

The main European mills are quoting stainless hot and cold rolled coil for October and November. Prices have increased by a further €50/t on average compared to the beginning of April. CRC now starts at €2,800/t and may reach €2,850/t delivered, while HRC is at €2,650-2,700/t delivered depending on tonnage, sources say. Given the lack of CRC availability, values are expected to reach €2,900/t delivered in May.

Despite supply issues, the entire value chain is enjoying high margins and “an explosion” in demand for flat products, particularly sheets, sources observe. Deliveries for flat re-rolled products span to the first quarter of 2022. Demand is less significant for stainless tubes, although prices are also increasing by €100 in May, sources say.

Natalia Capra France

French pipe maker Vallourec is registering better performance in its target markets. It has therefore announced an improved 2021 outlook compared to the negative outlook published in its 2020 financial earnings report in February.

The company expects higher sales volumes and prices this year for OCTG in North America, and “a higher contribution from the iron ore mine in Brazil”, it says in a note. The firm adds that it targets Ebitda of €350-400 million ($421-481m) in 2021.

Vallourec’s 2020 revenue was strongly affected by the pandemic impact on oil demand worldwide. Last year the pipemaker recorded revenue of €3,242 million ($3,920m), down 22% compared with 2019, as well as a 30% drop in shipments (see Kallanish 18 February).

Natalia Capra France

Wide-flanged H-beam import prices into Southeast Asia rose for the sixth consecutive month in April as raw material prices globally remained high, market sources said.

S&P Global Platts assessed the April price of wide-flanged S275JR H-beams up $70/mt month on month at $840/mt CFR Southeast Asia April 30.

Offers late in the month were in the range of $840-$890/mt CFR Singapore, up from $790/mt at end March.

Thai-origin beams were offered more competitively, in the range of $840-$850/mt CFR, while South Korean-origin beams were seen offered at $860-$890/mt.

Tradable levels were cited at $840-$850/mt CFR Singapore April 30, with little room for price negotiation with mills.

“If a buyer wants it, they would have to agree to the price pretty much within the day,” a Singapore-based stockist said. “Mills are not eager to sell, and they are just offering some volumes for the sake of maintaining relations. I don’t think they are in bargaining mode at this time when their sales are so good.”

Buyers and traders across the region said offers were increasingly for shorter validity periods, with a Singapore trader noting offers were being refreshed within one or two days.

China-origin beams remained far less competitive for buyers in Southeast Asia as offers surged to $830-$900/mt on an FOB basis for SS400 grades.

Platts wide-flanged S275JR H-beam assessment has surged $292/mt or 53.2% since November.

— Samuel Chin

European plate prices were heard higher April 30 with offers transitioning to Eur1000/mt ex-works Ruhr. Meanwhile, Italian producers are relishing the lack of competition from German mills with long lead times (earliest November), versus a more prompt May delivery from Italian re-rollers, sources told S&P Global Platts.

A Benelux service center source said availability was much better on plate than it was for coils, with a further uptrend in prices expected as merchant bars and beams enjoy additional increases.

“At this moment, availability is acceptable,” the service center source said, with demand from end-users heard to be improving compared to the consistent demand seen from distributors/stockholders as re-stocking efforts continue.

Few offers were heard from Dillinger, whose lead times were heard for November, said a German distributor, with Salzgitter heard to be offering Eur1000/mt DAP Germany.

“It has much to do with slabs. These integrated mills either sell slabs at very high prices on the world market or they give slabs for production of CRC/HDG downstream where they earn more money than plate,” the distributor said. “It’s making a shortage for re-rollers to get any slabs.”

An Italian mill source said slab prices were expected to increase further next month, and this was adding further bullish support to Italian plate prices.

“Eur950/mt ex-works is more than enough to cover new increases [on slabs]. We need to land between Eur900-950/mt ex-works Italy,” the same source said.

Adding to the lucrative situation in Italy, a second Italian mill source said big German stockholders were now keen for Italian lead times.

“They’re looking closely for material before their summer closures. We [Italy] can still deliver for late May,” the source said. “[For] new production for late-May delivery we cannot go below Eur950/mt ex-works Italy.”

— Amanda Flint

In Zusammenarbeit mit dem SSHV wird Valentin Kaltenbach, CEO der KALTENBACH.SOLUTIONS GmbH, als einer von mehreren geladenen Referenten Live-Vorträge unter dem übergeordneten Motto Performance-Steigerung im Stahl- und Metallhandel durch Digitalisierung halten. Mitglieder des Schweizerischen Stahl- und Haustechnikhandelsverbandes sowie interessierte Nichtmitglieder haben ab sofort die Möglichkeit, sich kostenlos für die Online-Veranstaltungen anzumelden, um am 27.5., 10.6. und am 24.6. Neues über digitale Trends zum Nutzen der Branche in Krisenzeiten zu erfahren.

Der SSHV ist ein wichtiger Partner der Metall-, Elektro- und Maschinenindustrie sowie der Bauwirtschaft. Seine Mitglieder, die Stahl- und Haustechnikhändler in der Schweiz, beraten ihre Kunden umfassend bei der Wahl geeigneter Werkstoffe und Produkte. Außerdem übernehmen sie die Beschaffung, die Veredelung, die Lagerhaltung und den Transport – von der innovativen Haustechnik bis hin zu maßgefertigten Stahlprodukten.

Valentin Kaltenbach, CEO der KATLENBACH.SOLUTIONS, ist als Referent am 10. Juni mit dem Thema Performance in der Anarbeitung um +30 % steigern live dabei.

Im Online-Workshop vom 27. Mai geht es um die Automatisierung und Digitalisierung von Maschinen im Bereich der Anarbeitung . Die zweite Session am 10. Juni beschäftigt sich mit der digitalen Transformation in den Workshop-Prozessen und der Intralogistik. Abschließend informiert der dritte Workshop am 24. Juni über die digitale Transformation in Office-Prozessen und an Schnittstellen . Die geplanten Online-Workshops finden jeweils in der Zeit von 15.00 bis 17.00 Uhr statt.

Eine Teilnahme ist sowohl für Mitglieder des SSHV als auch für Nichtmitglieder kostenfrei. Weitere Informationen zur Anmeldung und zum Programm können hier abgerufen werden.

Quelle und Foto: KALTENBACH.SOLUTIONS GmbH

28.04.2021 von Hubert Hunscheidt