Day: 20 September 2021

The EU has extended for a further five years anti-dumping duties on imports of stainless steel cold-rolled flat products originating in China and Taiwan, following the completion of an expiry review of existing measures.

The review was initiated in August 2020 following an application by European steelmakers’ association Eurofer, Kallanish notes.

For China, Shanxi Taigang Stainless Steel Co. and Tianjin TISCO & TPCO Stainless Steel Co. are levied with a 24.4% duty, other Chinese cooperating companies have 24.6% and all other Chinese companies have 25.3%. For Taiwan, Chia Far Industrial Factory Co. is levied with 0% tariff and all other companies with 6.8%.

The products fall under HS codes 7219 31 00, 7219 32 10, 7219 32 90, 7219 33 10, 7219 33 90, 7219 34 10, 7219 34 90, 7219 35 10, 7219 35 90, 7219 90 20, 7219 90 80, 7220 20 21, 7220 20 29, 7220 20 41, 7220 20 49, 7220 20 81, 7220 20 89, 7220 90 20 and 7220 90 80.

In Europe the product is produced by integrated producers transforming stainless steel scrap and alloying elements after melting, hot rolling and cold rolling. In China and, to an increasing extent, Taiwan, producers rely on the use of virgin raw materials, which are transformed into nickel pig iron before being melted, hot rolled and cold rolled, the European Commission observes.

EU consumption of the products fell 14% in the 1 July 2019 to 30 June 2020 review investigation period (RIP) to 3.197 million tonnes versus 3.73mt in full-year 2018. Imports from China surged 67% on the same basis to 12,546t, while intake from Taiwan surged 78% to 171,656t. Domestic production capacity was 4.57m t/year in RIP, with utilisation at 68%, down from 81% in 2018. Domestic sales volumes were 2.33mt in RIP, with market share of 72.9% versus 72.8% in 2018.

The separate EU anti-dumping probe continues into stainless CR flats originating in India and Indonesia.

Adam Smith Germany

The Italian state is increasing its investment in local steelmaker Acciaierie d’Italia, formerly known as ArcelorMittal Italia.

The government’s investment agency, Invitalia, has been authorised by the Italian Parliament, Camera dei Deputati, to invest further equity and issue funds of up to €705 million ($830m). This follows the approval of the “Grandi navi a Venezia” decree, which relates mainly to shipping in Venice but also touches on Taranto.

The further capital injection means to ensure production continuity for the Taranto steelmaking plant, considered a strategic national interest, the text of the decree says.

This further investment adds to over €1 billion of funds that Invitalia will gradually inject into the steelmaker over the next three years. In May 2022 it will become the majority shareholder of Acciaierie d’Italia with a 60% share. ArcelorMittal Italia will hold 40% of the company (see Kallanish passim).

The Grandi Navi a Venezia decree also authorises Invitalia to implement a feasibility study through a new company with the objective to build in Taranto a direct reduced iron plant. This will feed future electric arc furnaces and reduce the plant’s carbon emissions.

Natalia Capra France

US Steel is on the hunt for a site for a new $3 billion, 3 million short ton/year flat-rolled minimill, the company says. 

The planned minimill will run two electric arc furnaces. US Steel has only recently – but rapidly – entered the minimill arena via its Fairfield, Alabama, project and its acquisition of Arkansas’ Big River Steel, Kallanish notes. 

Moving into the EAF arena is part of the company’s so-called Best for All decarbonisation strategy. The company aims to have net zero emissions by 2050. 

“We already own and operate the most advanced and sustainable mini mill in the United States. Now we plan to expand this competitive advantage by continuing to combine our research and development and product innovation, deep customer relationships, and low-cost iron ore with additional mini mill steelmaking technology to create long-term value for our investors,” says ceo David Burritt. 

Taking into account the complex site-selection process, the company plans to begin construction in the first half of 2022 with production slated for 2024. 

“Our goal is to build capability to get better, not bigger. By accelerating our transition to more efficient mini mill steelmaking, we expect to continue differentiating ourselves versus less efficient capacity while improving our through-cycle profitability and lowering our capital and carbon intensity,” Burritt adds. 

Dan Hilliard USA

La direction du groupe Liberty Steel a annoncé, lundi, à l’occasion d’un conseil d’entreprise extraordinaire, qu’elle allait devoir se séparer de 153 travailleurs (sur un peu plus de 700) afin de sauver l’outil sidérurgique et d’éviter la faillite.

Ce volume de désengagements n’est cependant pas non définitif, dans la mesure où les négociations requises par la loi sur les licenciements collectifs vont dès à présent commencer avec les syndicats. C’est donc le début de la valse des propositions et des contre-propositions pour limiter les dégâts sur le plan social. En août, il était question d’une menace sur 300 emplois. Aujourd’hui, ce chiffre a été réduit.

Sur le plan industriel, une nouvelle entreprise serait créée, avec l’entrée dans le capital d’un gros client (mais lequel ?) et de la Région wallonne (mais combien ?). Ce montage permettrait de sauver la ligne de fer blanc et la ligne de galvanisation n°5, celle qui revêt des tôles épaisses d’une double forte couche de zinc, et qui est très performante, si elle est correctement approvisionnée en bobines. C’est ce que Liberty, présentement, est incapable d’assurer. La ligne de galvanisation n°4, elle, serait abandonnée.

Sur le plan judiciaire, le groupe Liberty est en “réorganisation” jusqu’à la fin septembre. Une demande de prolongation de trois mois est programmée. Pour soulager la trésorerie, la vente du siège social flémallois a été décidée la semaine dernière.

Willy Borsus rencontrera les syndicats mardi

Le ministre wallon de l’Economie, Willy Borsus, a “vivement regretté“, lundi, l’annonce du groupe Liberty Steel qui entend se séparer de 153 travailleurs afin d’éviter la faillite. “Il convient aujourd’hui d’examiner si cette restructuration permettra de pérenniser l’activité des sites liégeois et quelles sont les garanties réelles pour l’avenir en termes d’emploi et d’investissement“, souligne le ministre.

“La Région wallonne a déjà proposé, via la Sogepa, un prêt de 37 millions d’euros à Liberty Steel, à condition que ce dernier cède les outils industriels, en vue de trouver une solution concrète avec des partenaires industriels afin de minimiser les pertes d’emploi et garantir une activité pérenne. Cette proposition n’a pas fait l’objet d’un retour favorable de la part de Liberty“, rappelle-t-il par ailleurs.

“Avec ma collègue en charge de l’Emploi [Christie Morreale, ndlr], je continuerai à suivre activement l’évolution de la situation. Il faut cependant rappeler que la procédure Renault est strictement encadrée par la loi“, ajoute Willy Borsus. Ce dernier rencontrera les syndicats de l’entreprise demain/mardi. La ministre Morreale sera également présente. ,

Sujet JT 20 septembre 2021 :

https://www.rtbf.be/embed/m?id=2812352&autoplay=0

Source: rtbf.be

The UK government is determined to secure a competitive future for the UK steel industry amid the current spike in energy prices, and aims to boost its renewable energy sector to this effect, a spokesperson for the UK’s Department for Business, Energy & Industrial Strategy said Sept. 17.

BEIS will continue with ongoing work to support the steel sector, it said in an emailed statement to S&P Global Platts following calls by London-based Energy Intensive Users Group for the government to immediately lay out plans to safeguard the UK’s steel, fertilizers and other heavy industries in view of current electricity costs that are said to be higher than in other European nations.

As well as urging government actions to ensure security of supply to heavy industry during the winter, EIUG called in a Sept. 17 statement for UK energy market regulator Ofgem to undertake an immediate assessment of the appropriateness of both current market and emergency arrangements, and for BEIS to direct Ofgem to use its powers to address the disparity between UK industrial energy prices and those of near competitors.

Part of the current problem is exposure to gas, according to the BEIS statement.

“The UK benefits from having access to highly diverse sources of gas supply to ensure households, businesses and heavy industry get the energy they need at a fair price,” the BEIS spokesperson said. “Our exposure to volatile global gas prices underscores the importance of our plan to build a strong, home-grown renewable energy sector to further reduce our reliance on fossil fuels.”

“We are determined to secure a competitive future for the UK steel industry and in recent years have provided it with extensive support, including over GPB 600 million to help with the costs of energy and to protect jobs,” the spokesperson said.

UK mills ‘suspend’ some operations

Gareth Stace, director general of producers’ association UK Steel, said in a Sept. 15 statement that some UK steelmakers are being forced to suspend operations at times of peak energy costs. Prices have jumped from levels of around GBP 50/MWh ($68.90/MWh) during 2020, to current spot levels of over GBP 2,000/MWh, he noted, urging government to take action in the run-up to the winter months when electricity prices typically rise further.

“While prices have risen across Europe, wholesale prices have quadrupled in the UK and merely tripled in Germany, when accounting for carbon costs. This exacerbates the already grossly unequal electricity price disparity between UK steelmakers and our European competitors,” Stace argued.

The UK produces around 7 million mt of crude steel a year, around 70% of its annual requirement.

Platts assessed the UK Q4 baseload power contract at GBP179.95/MWh Sept. 15, while further along the forward curve, the year-ahead contract was assessed at GBP 113.34/MWh, both marking all-time records for Platts’ pricing data extending back to 2001.

BEIS sources noted that the UK has highly diverse sources of gas supply and one of the largest liquified natural gas import infrastructures in Europe. The government works closely with the regulator and the gas transmission system operator to monitor gas supply and demand, they said.

“While wholesale gas prices have increased internationally this year, adjustments in contracts continue to balance supply with demand, and we have no reason to suggest this will not continue,” the sources said.

The government has provided more than GBP 600 million in relief to the steel sector since 2013 to make electricity costs more competitive, according to the BEIS statement. In 2019 it announced a GBP 250 million Clean Steel Fund to support decarbonization of the steel sector, supporting its transition to new low carbon technologies and processes, and has published details of a steel pipeline on national infrastructure, anticipated to require around 5 million mt of steel over the next decade.

— Diana Kinch

Ferrous scrap and pig iron prices have stabilized even with a fresh round of iron ore declines this week, as record high global coking coal costs highlight the attractiveness of using low-carbon emissions scrap.

Iron ore’s price decline of around $28 week on week follows concerns China’s steel and pig iron production will weaken, pushing up scrap-to-iron ore ratios on Sept. 17 compared with Sept. 10.

The China import HRS101 scrap to iron ore 62% Fe price ratio rose to 5.7:1 on Sept. 17, up from 4.44:1 on Sept. 10. The Turkey HMS scrap to iron ore ratio increased to 4.36:1 on Sept. 17, from 3.42:1 on Sept. 10.

Lower iron ore prices may continue to exert pressure on ferrous scrap. However, continued increases in Chinese and global coking coal and met coke prices are adding to pig iron costs, which competes with scrap. Scrap can lower emissions via increasing use of recycled metals through the BF-BOF and EAF steel routes.

These were among prevailing ferrous raw materials trends this week in S&P Global Platts’ new low-carbon metals spreads and ratios – a suite of eight price references launched Aug. 13 that allow users to compare low-carbon feedstocks with traditional higher-carbon inputs.

The new spreads and ratios – underpinned by existing Platts assessments in hot-rolled coil steel, pig iron, ferrous scrap, iron ore, primary aluminum and scrap from the US, China, Turkey and the Black Sea region – were launched in response to market participants’ requests for tools to help quantify costs, manage risk, and support opportunities associated with the expansion of carbon-reduction strategies and increasing regulation.

Pig iron ratios to scrap stabilize

Weaker merchant pig iron prices earlier this month had made merchant pig iron relatively more price competitive with scrap, and the market has since stabilized.

Black Sea pig iron export prices to Turkey HMS scrap increased to a 1.10:1 ratio on Sep. 17, from a 1.07:1 ratio on Sept. 10, with both pig iron and scrap prices relatively weak compared with August’s averages.

In the US, import pig iron prices held at a 0.89:1 price ratio to MW No. 1 busheling scrap on Sept. 17 after weakening in early September.

Spot pig iron prices have again fallen faster than obsolete and prime grades. US mills remained quiet, waiting for prices to level out. Prices have also declined in pig iron trade from Brazil to China.

Pig iron and hot-briquetted iron enable greater ferrous scrap usage, helping meet steel quality specifications, by diluting scrap impurities such as copper.

The relative cost for metallics had fallen through August on weaker demand in markets such as the US and Turkey. Now, China is remerging as a spot buyer, as metallics sales into China were supported by high coking coal costs and scrap prices in China at relatively higher levels.

Pig iron’s carbon emissions are typically around 2.5 mt per mt and adjusted for yields, while some EAFs adapt their mix of metallics and scrap based on market prices, energy costs and operating plans.

US EAFs hold margins

US flat-rolled steel continued to be supported ahead of planned outages and with production volumes affected by tighter logistics and coking coal supplies.

Electric-arc furnace margins were steady during the week ended Sept. 17 as hot-rolled coil prices have remained level on subdued spot market activity on the back of planned mill maintenance and as consumers focus on 2022 contract discussions.

The Platts HRC-MW No. 1 busheling scrap spread and HRC-MW shredded scrap spread remained at strong levels through Sept. 17, supported by US HRC prices hovering around record levels.

Shredded scrap prices found support as exports started to stabilize, with Turkey as the major destination for US scrap exports.

The Platts HRC-MW No. 1 busheling scrap spread was $1,423.75/st on Sept. 17, and the HRC-MW shredded scrap spread also widened slightly to $1,543.84/st. Margins have risen 113% and 141% from the start of 2021, respectively.

Service centers and traders have been more willing to import steel based on the arbitrage opening up to the domestic market, especially as the market remains tight on supply from the planned outages. The recent drop in HRC futures may weaken interest to hedge for first-half 2022.

HRC lead times have started to come down slightly, and service center inventories have improved.

Prime scrap is expected to be under pressure again during the October scrap buy week as market sources anticipated prices could fall $20-$30/lt.

Mills were out late in the week looking for shredded scrap, supporting prices for the October buy week.

Given the wide differential between busheling and shredded, mills are looking at evolving technologies in order to better utilize obsolete grades of scrap, and market sources expect busheling’s premium to narrow further next month. Obsolete scrap pricing is currently anticipated to be steady to $20/lt higher, from September.

— Hector Forster and Nick Ruggiero

The European HRC market showed further signs of a gradual price correction as buyers held back their purchases in anticipation of further price decreases amid declining automotive demand, sources told S&P Global Platts Sept. 17.

Offers were heard at Eur1100/mt ex-works Ruhr, with imports from Russia more prevalent at below Eur1000/mt CIF Antwerp. CRC offers were heard as low as Eur1250/mt ex-works Ruhr.

A mill source said these latest indications were from customers who were “probably reducing the reality” to push mill offers lower.

In the Italian region, Eur1020/mt ex-works Italy was a workable HRC level. One Italian service center source also noticed the prevalence of Russian material in the market, with offers heard below Eur900/mt CIF Italy Ports.

A German distributor said import offers were coming in rather frequently, and also cited Russian material being sold between Eur900-960/mt FCA Antwerp.

“The main EU mills are still trying to get Eur1100/mt ex-works Ruhr. They say to either accept Eur1,080/mt or do not book,” the distributor said. “They’re under no pressure to book, everyone sees iron ore prices have gone down, China is increasing domestic prices and will also reduce volumes.”

Platts assessed North European HRC prices at Eur1100/mt ex-works Ruhr, down Eur15/mt on the day Sept. 17. Italian prices remained stable at Eur1028/mt ex-works Italy.

— Amanda Flint

European plate prices corrected lower the week ended Sept. 17 as ample supply in the Italian region, cheap imports and lower slab costs continued to pressure domestic prices, sources said.

Italian prices were heard as low as Eur870-890/mt in deals to large stockholders, with German prices also significantly lower at Eur950-1,000/mt ex-works Ruhr. Imports were heard at Eur840-850/mt CIF Italy Ports ex-Far East.

“The gap between import and domestic is not sweet enough anymore,” an Italy-based mill source said.

A second mill cited a tradable value for heavy plate at Eur860/mt, some of the lowest prices heard for the product.

Offers from Eastern Europe were heard between Eur880/mt and Eur900/mt CPT Krakow and Warsaw.

Inquiries for material have increased, but sources noted actual bookings remained quite scarce, despite heightened competition from other mills.

“We faced harsh competition this week and had to turn to Central European markets to get higher levels of price,” a third, Italy-based mill source said.

Across the steel market, producers have worried about increasing stocks contributing to a further price drop.

— Amanda Flint

SOTRALENTZ CONSTRUCTION, französische Tochtergesellschaft der SÜLZLE Gruppe mit Sitz in Deutschland, ist seit 2021 offiziell ein klimaneutrales Unternehmen. Als aktives Mitglied der Organisation „Le Coq Vert“, eine Gemeinschaft der Bpifrance und der ADEME, hat sich SOTRALENTZ außerdem gemeinschaftlich mit anderen Unternehmen dem ökologischen Wandel verschrieben. Der Spezialist für Bewehrungsstahl, Listenmatten und Tübbings mit Sitz im ostfranzösischen Drulingen hat dafür seine klimarelevanten Emissionen konsequent analysiert, reduziert und kompensiert. „Als eines der ersten Unternehmen unserer Branche bieten wir zudem unseren Kunden seit September 2021 die Möglichkeit CO2-neutralen Bewehrungsstahl zu beziehen“, so der SOTRALENTZ CONSTRUCTION Geschäftsleiter Olivier Schmitt. „Wir sehen es als Pflicht ein Zeichen für den Klimaschutz zu setzen“, ergänzt Schmitt.

Seit 2016 gehört die Société Nouvelle SOTRALENTZ CONSTRUCTION S.A.R.L. zur deutschen SÜLZLE Gruppe. Für die mittelständische Unternehmensgruppe mit ihrer über 140-jährigen Firmengeschichte ist nachhaltiges Wirtschaften ein zentrales Anliegen: Die SÜLZLE Gruppe hat sich bereits nahezu vollständig klimaneutralisiert. Die französische   Tochtergesellschaft folgt nun diesem Beispiel. „Um dieses Ziel zu erreichen, ermittelten wir gemeinsam mit der Beratungsgesellschaft Fokus Zukunft unseren CO2-Fußabdruck. Wo immer möglich, haben wir diesen direkt reduziert, unter anderem durch Investitionen in neue, energieeffizientere Maschinen,“ erläutert Schmitt. Darüber hinaus werden unvermeidbare Emissionen mithilfe von Klimaschutzzertifikaten kompensiert, mit denen das Unternehmen Projekte mit positiver Wirkung auf die globale CO2-Bilanz unterstützt – von Aufforstung über Wasseraufbereitung und Infrastruktur bis hin zur Gewinnung erneuerbarer Energien.

„Wir freuen uns, dass nach den meisten deutschen Standorten nun auch SOTRALENTZ CONSTRUCTION die Klimaneutralität erreicht hat – und das als landesweiter Vorreiter seiner Branche“, erklärt Heinrich Sülzle, geschäftsführender Gesellschafter der SÜLZLE Gruppe. „Wir als Familienunternehmen möchten in Sachen Nachhaltigkeit mit gutem Beispiel vorangehen – und das nicht nur in Deutschland, sondern überall dort, wo wir aktiv sind. Denn Klimaschutz kennt schließlich keine Grenzen.“

Für seine europaweiten Kunden bietet SOTRALENTZ CONSTRUCTION zudem ab sofort die Möglichkeit, CO2-neutralen Stahl zu beziehen. Durch einen vom Kunden geleisteten Klimaschutzbeitrag pro gelieferte Tonne Bewehrungsstahl werden die bei der Stahlherstellung und Weiterverarbeitung entstandenen CO2-Emissionen ausgeglichen. „Für uns beginnt Nachhaltigkeit schon beim Fundament. Bewehrungsstahl hat eine gute Ökobilanz, da er in seiner Nutzung und Recyclingfähigkeit unübertroffen ist. Er kann ohne Qualitätsverlust unendlich oft recycelt werden“, betont Geschäftsleiter Olivier Schmitt.

Die Société Nouvelle SOTRALENTZ CONSTRUCTION S.A.R.L. hat jahrzehntelange Erfahrung in der Herstellung und Konstruktion von individuellen Bewehrungen für den Stahlbetonbau – mit besonderen Kompetenzen bei Listenmatten sowie Tübbings für den Tunnelbau.

Quelle und Bilder: Société Nouvelle SOTRALENTZ CONSTRUCTION S.A.R.L und Sülzle Holding GmbH & Co.KG