Day: 22 July 2021

Italian crude steel output hiked again in June after increasing in previous months, according to data issued by local steelmakers association Federacciai.

Last month crude steel production rose by 20.1% year-on-year to 2.1 million tonnes, Kallanish notes. Output also hiked significantly in the first half of the year, by 26% on-year to 12.7mt.

Italian flat steel production rose only slightly in June, by 2% to 927,000t, and by 13.3% to 5.6mt in the first six months of the year.

Longs output jumped last month, by 28.2% to 1.3mt, and by as much as 36.8% to 7.1mt in January-June, Federacciai says.

Natalia Capra France

According to union sources, four companies have been shortlisted for the purchase of Italian stainless steel producer Acciai Speciali Terni (AST), which is part of thyssenkrupp.

Italian steelmaker Arvedi and re-roller Marcegaglia are visiting the facility in Terni this week, while Posco and Baosteel are also said to be competing to acquire the troubled producer. Kallanish hears there is a “political will” for Terni to remain Italian, possibly with the help of some government financial support that is currently being discussed.

Arvedi and Marcegaglia preferred not to comment at this phase of negotiations. An informed source believes a partnership between the two could be an option, but other sources rule out this possibility.

In April, thyssenkrupp started the first phase of the sale, where buyers had access to some of AST’s production, sales and financial documents. This phase, which lasted two months, has been handled by JP Morgan, which oversees the entire process. Together with the Italian government, local steelmakers association Federacciai has publicly supported the sale of AST to one of the Italian companies involved.

The companies in the run for AST are now preparing a financial offer, Kallanish understands.

Natalia Capra France

NLMK Group confirms it has declared force majeure for its La Louviere coil rolling mill in Belgium, following a fire that occurred last Saturday.

The fire caused no injuries. The company was in the process of ramping up production after a significant investment in the hot strip mill. The unit stopped production at the beginning of February for a period of five weeks to install three new finishing lines at the site.

“Luckily, we have sustained no injuries and the new equipment has not been affected by the fire,” a spokesperson at the company tells Kallanish. The unit is expected to return to production after a week of repairs following the fire.

The stoppage at NLMK Louviere is expected to further pressure the already tight coil market in Europe, which was also impacted last week by deadly floods in Germany and other parts of northwest Europe. These forced some other mills to stop or slow down activity.

NLMK Louviere has a production capacity of some 1.7 million tonnes/year of hot rolled coil, currently being lifted by the latest investments at the site.

Emanuele Norsa Italy

Italian HRC prices were heard lower July 21 as import pressure and a sluggish summer take their toll on prices, sources told S&P Global Platts.

Buy-side participants were more comfortable sitting on the sidelines as they wait for material previously booked to arrive into their warehouses.

“We have some material to be delivered June-July that was previously booked in March, with the majority of companies closing in the first week of August and will be back in the last week,” an Italian trader said.

Availability concerns were still evident, particularly in Italy, with Liberty Magona still undergoing production issues.

“Liberty Magona is still closed and not producing, leaving Arvedi and Marcegaglia,” the trader said. “I see at the moment there is no willingness to buy – people preferring to wait until September to see what will happen.”

Meanwhile, a European mill source said the ongoing difficulties at the Marcegaglia Ravenna would have some affect on production.

“With the terrible accident that happened at Ravenna, those guys will be out,” the mill source said.

Sources remained certain that there would be no major prices decreases in Europe, though US prices were looking particularly attractive, potentially incentivizing producers to export across the Atlantic.

North European HRC prices were heard at Eur1,185/mt ex-works Ruhr and Eur1,170/mt ex-works Ruhr July 21.

— Amanda Flint