Day: 28 July 2021

US steel imports rose 15% month on month in June amid higher shipments of hot-rolled coil and semi-finished steel, according to preliminary data from the Commerce Department July 27.

The US imported 2.63 million mt of steel in June, according to the preliminary data, up from May’s final import count of 2.29 million mt. Year over year, US steel imports in June jumped 106% compared with the 1.28 million mt imported in June of last year when the industry experienced disruptions caused by the coronavirus pandemic.

The finished steel import market share was an estimated at 21% in June and is estimated at 16% over the first six months of 2021, according to the American Iron and Steel Institute. Through the first six months of 2021, total steel imports are up 18.5% year over year, according to the AISI.

Shipments of hot-rolled coil jumped to 310,865 mt, up 48% from the 210,159 mt imported in May, while imports of cold-rolled coil rose 20% on month to 134,535 mt. Shipments of hot-dip galvanized sheet, however, moved lower on month, falling 20% to 177,925 mt, according to the preliminary data.

Imports of non-slab semis also saw a sizeable gain on the month, rising 51% from May to 206,235 mt. Shipments of slab, meanwhile, rose 13% month on month to 520,856 mt.

Shipments of long products also rose month on month, with imports of wire rod and rebar rising 21% and 12%, respectively, from May.

Canada was the largest exporter of steel to the US in June, with shipments from the country rising 6% from May to 579,405 mt.

— Justine Coyne

Spanish carmaking production dipped in June, Kallanish notes. National automotive association Asociación Nacional de Fabricantes de Automóviles y Camiones (Anfac) says production and exports were down both on pre-Covid-19 and 2020 levels. In June 2020 local manufacturers were still resuming their halted plants after the Covid-19 lockdown.

Output in June thus fell 33.8% versus the same month in 2019 and 18.1% year-on-year to 172,696 units. Poor sales in main markets, together with the microchip supply crisis, continued to undermine Spanish manufacturers’ activity, Anfac observes.

To adapt output to the availability of components, Spanish manufacturers implemented some stoppages at their lines, with delays remaining across all production chains. The shortage of microchips is likely to persist at least until the first half of 2022, Anfac estimates.

During the first six months of this year, Spain’s output amounted to 1,205,577 vehicles, down 21.6% on January-June 2019 but 26.1% more over the first half of 2020.

Meanwhile, Spanish vehicle exports were 151,366 units in June, a decrease of 27.7% compared to the same month in 2019 and down 14.9% y-o-y.

European markets, which represented 80% of Spanish deliveries in June, reduced their purchases by 29.5%. Of Spain’s main five export destinations, only Turkey increased intake during the month, by 55% versus June 2019.

Six-month exports fell by 16.1% over January-June 2019 to 1,035,609 vehicles. However, these were 30.6% more over H1 2020, Anfac data show.

Todor Kirkov Bulgaria

The technical transition of the steel industry away from classic blast furnaces will mean increasing demand for higher-grade scrap, according to Markus Dorndorf of plant builder Tenova.

“Long-term projections for the switch to CO2-neutral processes show that the future availability of scrap will only cover about 50% of the steel producers’ needs,” Dorndorf said at the scrap forum of German recycling association BVSE. In addition, not all steel qualities can be produced via the pure scrap-based route. This is because scrap is contaminated and, unfortunately, the level of contaminants is increasing, Kallanish heard from Dorndorf.

More and more products and components made of steel also contain other materials, for example electronic parts, motors and a variety of alloying elements, he said. “To completely remove these impurities is very time-consuming or involves high costs. Therefore, dilution with pig iron is necessary in the electric arc furnace to produce high-quality steel grades,” he noted.

Dorndorf reiterated that CO2 emissions are significantly reduced compared to the BF route by using processes like EAF steelmaking or production of hot-briquetted iron (HBI).

The scrap-based EAF route saves around 75% of the CO2 produced compared to the conventional blast furnace route and the DRI route (natural gas-based) around 50 to 60%, he said. With the use of hydrogen in direct reduction, the savings effect increases. Tenova, together with Danieli, is the supplier of the HYL/Energiron technology for DRI.

Christian Koehl Germany

Metinvest expects to expand the range of products by purchasing the Dneprovsky Iron and Steel Works (DMK) through its Dnieper Coke Plant (DKHZ) subsidiary, the Ukrainian steelmaker says.

Metinvest won an auction on Monday to acquire assets relating to the integral property complex of DMK in Kamianske for UAH 9.17 billion ($341 million), Kallanish notes. The auction was held in the ProZorro system and Dnipro Coke was the only participant. It won the tender by offering a price significantly higher than the starting one, Metinvest claims. The auction was held as part of DMK’s bankruptcy proceedings.

DMK’s property consists of the equipment necessary for the production of pig iron and steel products. The acquisition also includes the right to use the land and to work under licences and permits issued to DMK. About 9,000 plant employees will get a job at Dnipro Coke.

DMK was one of the largest steelmakers in Ukraine with a full-cycle metallurgical production facility. The capacities of its integral property complex include production of 3.9 million tonnes/year of crude steel.

“The purchase of DMK’s production complex will allow Metinvest to expand its product mix by effectively replacing production of square billets, wire rod, rebar and shapes, which used to be produced at an asset located on non-controlled territory of East Ukraine,” Metinvest says. “The acquisition will also provide Promet Steel, the group’s rolling mill in Bulgaria, with square billets for processing. DMK has also been one of the company’s top purchasers of iron ore and coke in Ukraine, which gives Metinvest additional synergies throughout the entire production chain.”

Metinvest received permission in May from the Antimonopoly Committee of Ukraine (AMCU) to partake in the auction for DMK (see Kallanish passim). Metinvest is a creditor of DMK.

The bankruptcy of DMK had been initiated in May 2019 as a result of a suit brought by one of its creditors. The total amount of the plant’s debts to various companies recognised by the Commercial Court of Dnipropetrovsk region is UAH 87 billion as at 26 July.

The sale of DMK’s assets at an auction was a required condition under the bankruptcy proceedings, aimed at preventing the shutdown of production and the liquidation of the company.

Svetoslav Abrossimov Bulgaria

Liberty Steel’s Italian re-rolling plant, Magona, will resume production on 28 July, sources close to the company tell Kallanish.

The plant, however, will be idled again between 14 and 23 August. Magona has received 20,000 tonnes of hot rolled coil feedstock from Liberty Galati and bought 10,000t from traders, which will only give visibility on production until 23 August. After this date, workers hope to receive another batch of HRC to continue production into September.

No HRC supply is expected from ArcelorMittal’s Fos-sur-Mer plant, a former supplier of Magona. Liberty is said to be trying to repay the outstanding debt that its Liege plant has with ArcelorMittal Fos-sur-Mer, so that the latter can resume supplying HRC to its re-rolling plants, including Magona.

Magona’s pickling line, rolling mill, galvanising line no.5 and coating line no.2 will now resume production. Galvanising line no.4 and coating line no.1 will remain idled. Galvanising line no.2 has been idled for several years and needs a costly revamp.

Magona’s monthly need of HRC is approximately 45,000-50,000t, or 600,000 t/year. Galati may be able to supply approximately 380,000 t/y, while the rest will be bought on the national and international markets, sources say.

Liberty plans to merge its Liège-Dudelange and Magona coil processing plants into the Liberty Galati organisation (see Kallanish passim). The Romanian steelworks will become their primary HRC provider, to ensure sustainable feedstock supply. The company will submit on 28 July the merger plan to the Italian government, Kallanish understands.

Liberty declined to comment.

Natalia Capra France

Spain’s Gestamp saw increased revenue in the first half of 2021 due to the recovery of the automotive market, the company says in its second-quarter report monitored by Kallanish. Gestamp is a major supplier of components to the global automotive sector.

The company says it has outperformed the market in almost all regions with the exception of Asia, which has been slightly below the market growth rate. On the other hand, the operational improvements implemented as part of Gestamp’s transformation plan enabled the company to maintain solid profitability in H1.

“Gestamp continues to follow closely the uncertainties of the automotive market around semi-conductor shortage impact but we maintain our 2021 guidance, improving it on capex to revenues ratio and net debt level,” says company executive director Francisco Riberas. “We have been working for years with specific products for electric vehicles such as the battery box. Thus, among other projects, we are leveraging the projects around ‘Next Gen’ EU funds in our commitment to the new challenges of more sustainable mobility.”

Gestamp’s H1 net revenue amounted to €4.07 billion ($4.79 billion), up 33.8% year-on-year.

In Q2 alone, net revenue was €1.96 billion, up 90.3% y-o-y. The form total, body-in-white and chassis segments together represented €1.64 billion. This strong increase resulted from a low base in Q2 2020, which was heavily impacted by Covid-19 shutting down customers’ plants across all regions.

Q2 revenue from Western Europe reached €884.6 million, up 102.4% y-o-y. This region registered a very strong y-o-y volume recovery, as it experienced the highest impact from the pandemic during the same period last year. As a result, production volume in the region increased by 93.5% versus Q2 2020. The recovery is well spread across the region, with Morocco, France and the UK having the strongest growth.

Eastern Europe revenue in Q2 increased by €132.7m to €297.6m, while in Asia it rose 6.8% to €261.6m.

Gestamp saw its activities in the Americas also rise. In North America, revenue rose by €246.9m to €416.5m, while earnings from the South American market grew by €89.6m to €107m.

The company’s Ebitda was €239.7m, up 928.3% y-o-y, and €498.1m, up 130.7% in Q2 and H1 respectively.

Todor Kirkov Bulgaria