Day: 27 August 2021

ArcelorMittal is evaluating the upgrade of its galvanizing line No.1 at its Avilés plant in Spain, Kallanish learns from the Asturian Government. The project foresees implementing technology for the manufacture of “Magnelis,” a unique product with a metallic coating protecting the steel against corrosion. ArcelorMittal already produces it at its galvanizing line No.2 since 2017.

“ArcelorMittal posted a request for environmental impact assessment and substantial modification of the industrial complex subject to integrated environmental authorization to adapt the galvanizing line No. 1 for the manufacture of a new galvanized steel product for industrial use, whose characteristic is a composition coating with a higher content of aluminium and magnesium, which improves its corrosion resistance,” says a note in the Asturian government’s official gazette, BOPA.

The planned investment follows the growing demand for this specific product from sectors such as construction, racking, electrical equipment, and HVAC, agriculture, civil engineering and solar energy.

Todor Kirkov Bulgaria

French stainless steel producer Aperam has increased September alloy surcharges for its austenitic range of flat stainless steels for Europe by over €100/tonne ($117) on average versus August, Kallanish learns from the company.

The surcharge for grade 304 (1.4301) has gone up significantly from €2,056/t this month to €2,159/t effective 1 September. For grade 316 it has increased from €3,167/t to €3,319/t. Grade 309S, a heat-resistant stainless steel used in high-temperature applications, has seen its surcharge hiked from €2,752/t to €2,912/t from 1 September. The surcharge for the most popular ferritic grade, 409, has also risen from €823/t to €833/t, the company reveals.

Offers for nickel cash buyers were at $18,611/t on 25 June and reached $19,225/t on 25 August, Kallanish notes.

Natalia Capra France

Almost 9 million fewer vehicles will be produced in 2021 due to the global shortage of semiconductors, according to a study by the Boston Consulting Group (BCG).

In the first quarter of 2021, the production losses of global automakers amounted to approximately 1.4 million units, Kallanish notes. Production fell the most in Europe by 428,990 vehicles, China by 364,774 and North America by 354,442 vehicles.

In the second quarter, production fell by another 2.6m units, with the most in North America – 866,924 units, Europe – 743,100 and China – 419,600.

The most significant losses of production in the first half of this year were suffered by automakers Ford with a drop of more than 700,000 vehicles, Stellantis with almost 600,000 units and Renault Nissan-Mitsubishi, with a drop of more than 415,000.

In the third and fourth quarters the fall will be from another 3-5m units, BCG observes.

“The shortage of chips in the global market arose as a result of the Covid-19 pandemic of a new type,” the consulting group says. “This provoked a significant increase in demand for household computers and intelligent medical equipment against the background of forced quarantine closures of car factories around the world and a drop in demand from automakers.”

The lifting of restrictions and the rapid recovery of production in the automotive industry coincided with the reorientation of chip manufacturers to consumer electronics and there was a shortage, according to BCG. “Shipments of chips are gradually resuming, but the pandemic continues to make its own adjustments.”

“A more active recovery in production in the third quarter is not due to the outbreak of the delta strain. We expect the supply of microchips to reach a level where it will be able to meet the demand of the industry, no earlier than the second half of 2022, ” claims BCG’s chairman in Russia and CIS Vladislav Butenko.

Svetoslav Abrossimov Bulgaria

Czech steelmaker Liberty Ostrava, part of GFG Alliance, said Aug. 26 it expects to increase 2021 production 47% year on year following a four-year high in steel product volume shipped in the second quarter.

The company is in the process of increasing its production toward 2.5 million mt for the year, up from around 1.7 million mt in the COVID-19-impacted 2020, it said in a statement.

In the second quarter, its steel product volume was 684,000 mt shipped, up 12% from Q1, and its highest quarterly volume since 2017. The company is fully booked to run at full capacity, it said.

This volume increase meant Liberty Ostrava’s Q2 EBITDA increased 35% to Koruna 2.6 billion ($121 million), its best quarter since 2011.

“The continued improvement in the production performance has been underpinned by Liberty Ostrava´s flexibility, which allows it to switch its product mix between long and flat steel products depending on market dynamics,” the company said.

“This adaptability has meant the plant has been able to effectively maximize returns from the strong flats market over the last six months.”

Liberty Ostrava is an integrated steel business with an annual production capacity of about 3.6 million mt/year serving primarily construction, machinery, and oil and gas industries. The company is a domestic leader in the manufacture of road barriers and tubes. In addition to the Czech market, it supplies products to more than 40 countries.

— Gianluca Baratti

The UK’s auto manufacturing output fell 37.6% year on year in July amid the ongoing global shortage of semiconductor chips, the COVID-19 “pingdemic” creating staffing issues and summer shutdowns, the Society of Motor Manufacturers and Traders (SMMT) said on Aug. 26.

The sector manufactured 53,438 units in July, the lowest level for the month since 1956.

According to the SMMT data, auto production for the UK domestic market fell 38.7% on the year to 8,233 units in July, while manufacturing for export dropped 37.4% over the same period to 45,205 units.

The percentage of vehicles manufactured for export remained relatively static at 84.6%, compared with 84.3% in 2020, with SMMT saying that overseas buyers had “continued to be attracted to the wide range of high-quality cars made in Britain, including the latest alternatively-fueled models.”

Despite the low overall volume, the positive aspect was the higher percentage of electric vehicles manufactured in July.

Of the total vehicles produced in the month, 26% were either battery electric (BEV), plug in hybrid (PHEV) or hybrid electric (HEV), the highest share on record.

In the first seven months of the year, the UK manufactured 552,361 units, up 18.3% from the same period in 2020, with the latter being affected by the initial COVID-19 lockdowns.

However, SMMT said the seven-month volume was 28.7% lower than the same period on 2019.

It added that UK auto manufacturers had produced 126,757 EVs since the start of 2021.

Semiconductor shortage

SMMT CEO Mike Hawes said the July figures “lay bare the extremely tough conditions UK car manufacturers continue to face.”

He noted that, while the “pingdemic” impact was expected to decrease as self-isolation rules changed, the global shortage of semiconductors showed little signs of abating.

Ducker Research and Consulting managing director Abey Abraham told the International Magnesium Association’s 2021 Annual World Magnesium Virtual Conference on Aug. 24 that the semiconductor shortage was forecast to impact global automotive production through 2023, with the forecast for 2021 likely to be reduced further despite pent up demand.

“The UK automotive industry is doing what it can to keep production lines going, a testament to the adaptability of its workforce and manufacturing processes. The government can help by continuing the supportive COVID-19 measures currently in place and boosting our competitiveness with a reduction in energy levies and business rates for a sector that is strategically important in delivering net-zero [emissions],” Hawes said.

— Jacqueline Holman