Day: 22 February 2022

Beltrame has received Romanian competition authority approval to take over bankrupt long products mill COS Targoviste for €38.3 million ($43.5m).

The Italian firm tells Kallanish it plans to invest some €100m into modernising the Romanian long products mill’s equipment.

Liberty Steel had also been in the running to acquire the plant, according to stock exchange filings.

The Romanian government had initially planned to take over COS Targoviste in exchange for the mill’s state debt. However, this plan fell through after government ministerial changes and the state’s loss of will to nationalise a steel plant.

In 2020 COS Targoviste stopped production indefinitely and dismissed around 1,200 workers after working capital was depleted and debts increased. The firm had been on the verge of an acquisition by Laminorul Danube Metallurgical Enterprise, a recently-established company that is 90% owned by Polish industrial investor Sunningwell International Polska. However, this transaction was scuppered by the Covid-19 pandemic.

COS Targoviste reported no production in January-September 2021. Sales fell 76% on-year to 1,744 tonnes, with exports accounting for 1,548t. Revenue slumped 57% to RON 13.06 million ($3m) but net loss halved to RON 22.4m.

The firm produces mainly rebar and a range of special steels.

Beltrame already owns a plant in Romania, Donalam, which produces 8-320mm diameter round bar and reported sales of 106,000t in 2019. The firm estimates a 50-60% on-year increase in revenue for the plant in 2021 to RON 630m.

The Italian group said last year it also plans to build a 600,000 t/year eco-friendly rebar and wire rod mill in Romania for an investment of €300m.

Adam Smith Germany

Italian sections producers are pushing up their prices by €50/tonne ($56), as other long products makers in the country are mulling similar increases, Kallanish hears.

The largest sections mill in the market was quoting at €670-680/t for the first category of beams until a few days ago. Prices increase by €20/t for each subsequence category. New quotes should push asking prices up to €720/t base ex-works.

Contract prices for the first category of sections remain stable on last week at €670-680/t ex-works. Values for the first category of beam were at €570-580/t base ex-works last month. Including €380-390/t average size extras, domestic beams contracts are hovering at €1,050-1,070/t ex-works, sources suggest.

The current hike is due to strong raw material price increases. It may be followed by another increase in the coming weeks as energy costs and domestic scrap prices are forecast to continue climbing in March, Kallanish hears.

Natalia Capra France

India’s steel industry has welcomed the power ministry’s announcement of a Green Hydrogen Policy to facilitate production of green hydrogen green ammonia using renewable sources of energy.

The move is part of India’s National Hydrogen Mission, announced on 15 August 2021 and aimed at making India a green hydrogen hub with 5 million tonnes/year green hydrogen production by 2030.

Hydrogen and ammonia are envisaged as future fuels to replace fossil fuels in steel production, Kallanish notes. Under the policy, green hydrogen/ammonia manufacturers can purchase renewable power from the power exchange or set up renewable energy capacity themselves or through a developer, anywhere. Also, the manufacturer can bank his unconsumed renewable power with the distribution company for up to 30 days, and take it back when required.

“We welcome the Green Hydrogen Policy, which demonstrates the Government’s firm commitment towards decarbonisation efforts and making India a green hydrogen hub,” says India Steel Association president and AMNS India chief executive Dilip Oommen.

“This policy will give further impetus to promote cleaner and greener energy, bridge the gap between demand and supply to improve availability, and is a step in the right direction to ensure availability at a competitive price. I am confident that the steel sector will benefit from this policy and will contribute significantly to our climate change efforts,” Oommen adds.

The policy will also grant incentives for renewable purchase obligation (RPO) to manufacturers and distribution licensees for the consumption of renewable power.

To promote green energy production, the ministry will waive inter-state transmission charges for 25 years to manufacturers in projects commissioned before 30 June 2025. The manufacturers will be given connection to the grid on a priority basis to avoid any procedural delays.

Manufacturers of green hydrogen/green ammonia will be allowed to set up bunkers near ports for storage of green ammonia for export. The land for storage will be provided by the respective port authorities at applicable charges.

The ministry will also grant open access to the applicant within 15 days of the receipt of the application. The policy will enable a single portal for carrying out all the activities, including statutory clearances set up by the new and renewable energy ministry.

Sayed Aameer India

Benelux scrap prices, which recorded sharp rises in previous weeks, softened last week amid absent activity.

Most scrap exporters stopped procuring material last week due to lack of demand in major export destinations. There were only a few exporters needing to fill a vessel in the market.

Although a few exporters are still paying €400/tonne ($453) to procure scrap, most are seen to have decreased their buying prices to €395/t ($448) delivered for HMS 1&2 80:20. Even €390/t is available from a few exporters in Belgium.

One Benelux exporter tells Kallanish: “Demand has stopped in the export markets. We have stopped buying as we initially want to see what our customers will do. We have clearly seen that HMS 1&2 80:20 prices at above $503/t cfr Turkey did not work.”

Following the latest EU-origin scrap deal at $503/t cfr Turkey in the week before last, European suppliers offered HMS 1&2 80:20 at $505-509/t cfr Turkey last week but buyers showed no interest.

Another Dutch exporter says: “Despite a sharp decrease in demand, collectors are still targeting high prices and are not pushing or rushing to sell. They are also waiting. Flow into our yards is very weak, even at €395/t.”

A Benelux supplier describes the local market as being in a complete standstill.

“If Turkey continues to halt scrap purchases this week, dock prices in the Benelux will definitely fall,” says another exporter.

Most market participants, however, expect Turkish mills’ scrap demand to recover this week as Turkey has not yet started booking April-shipment cargoes. Given that a large amount of April-shipment scrap is yet to be booked, most market participants seem bullish over near-term pricing.

In India, meanwhile, mills’ buying interest remains weak. While containerised shredded scrap offer prices are at $540/t cfr Nhava Sheva, mills are showing no interest, even in lower-priced offers.

Burcak Alpman Turkey

Proposal for Revision of Regulations for Cross-border Waste Shipping – Press Release

Spain’s steel consumption rebounded close to pre-pandemic levels in 2021 as apparent demand increased 12% year on year to 13.1 million mt, Spanish steel association Unesid said Feb. 21.

The 2021 demand level was just 1% below the 2019 volume of 13.2 million mt, the group said. Spanish demand is typically broken down into around 63% flat products, 33% longs and 4% others, according to Unesid data.

The group said the outlook for 2022 remains positive but only if energy prices, which are now impacting production, fall from their current levels.

Steel production in Spain slowed 2% year on year in November and 4% year on year in December amid soaring power and gas prices, it reported.

Nonetheless, overall production in 2021 was 14.2 million mt, up 27% year on year and up 4% from pre-COVID-19 levels, Unesid said.

Spain has 22 steel production sites with a total capacity to produce 17 million mt/year from electric arc furnaces and 6.6 million mt/year via the blast furnace and basic oxygen furnace route. Usually around 85% of annual production is non-alloy steel. The country’s highest production to date was of 19 million mt in 2008.

With global economies recovering from pandemic restrictions, both imports and export volumes rebounded in 2021.

Spain imported 10.1 million mt of steel in the year, up 12% year on year and a two-year high, with import volume from within the EU rising 30% year on year, Unesid said. Around 70% of imports are usually flat products.

Exports increased 19% year on year to a three-year high of 9.5 million mt, with the volume going to other EU nations rising 29% year on year, leading to a trade surplus in financial terms of Eur658 million ($745 million), up 36% from 2020. Spanish steel exports usually comprise about 55% long products, with around 30% flat products and the remainder semi-finished goods, according to Unesid data.

The group noted that the volume of scrap recycled increased 22% in 2021 to 11.1 million mt. The total was also 6% higher than the 2019 total, Unesid said.

— Gianluca Baratti