Day: 20 July 2022

Italian crude steel production in June fell 14.2% year on year to 1.88 million mt as demand weakened and energy costs rose, data from Italian steel federation Federacciai showed.

In the first six months of the year output fell 4.0% to 12.23 million mt, the data showed.

Production of long products by electric arc furnaces in June fell 23.2% to 1.01 million mt, while flat production dropped 15.1% to 788,000 mt.

In the first six months of the year production of longs fell 5.2% to 6.79 million mt and production of flat products fell 3.1% to 5.44 million mt.

Italian mills are experiencing high energy costs and expect summer stoppages to be longer then the usual in the face of weak and thinning margins, industry sources said.

The HRC ex-works Italy price stood at Eur770/mt at the end of June, down from Eur950/mt at the beginning of the month.

Platts assessed HRC in Italy at Eur780/mt ex-works on July 18, down Eur5/mt on the day, according to S&P Global Commodity Insights data.

Sources estimated tradable value at Eur760-770/mt ex-works Italy, but latest transactions have been confirmed at Eur800/mt ex-works.

Italy is Europe’s second-largest steel producer after Germany.

— Annalisa Villa

Europe’s largest crude steel producer, Germany, registered a 7% year-on-year decrease in its crude steel output in June at 3.19 million mt as demand weakened and energy costs rose, data from the German steel federation WV Stahl showed.

According to the association, crude steel production over the January-June period fell 5.5% on the year to 19.57 million mt.

Crude steel production from electric arc furnaces, or EAFs, registered the largest on-year drop of 8.8% in June to 1.05 million mt as energy costs dented production.

Output from blast furnace basic oxygen furnaces, or BFs, was also down 6.1% from a year ago to 2.15 million mt.

During the first half of 2022, production from EAFs decreased 4.5% on the year to 6.22 million mt, while output from BFs dropped 6% to 13.34 million mt.

June pig iron production fell 7.9% year on year to 1.94 million mt, bringing H1 total production to 12.24 million mt, down 6% on the year.

Hot-rolled coil prices in Northern Europe were at Eur975/mt ex-works Ruhr at the beginning of June and ended the month at Eur840/mt base ex-works, according to S&P Global Commodity Insights data.

Platts assessed HRC in Northern Europe at Eur855/mt ex-works Ruhr on July 18, stable day on day despite competitive offers from Central Europe, sources said.

— Annalisa Villa

Turkey’s largest steel pipe producer Borusan Mannesmann has won a Eur13.5 million ($13.8 million) line pipe tender arranged by Denmark’s Evida Service and Energinet Teknik, the company said late July 18.

According to a company statement to the public disclosure platform seen by S&P Global Commodity Insights, the pipes will be used in the transmission of biogas to Denmark’s Lolland and Falster islands.

The pipes will be produced at the Gemlik, Bursa works and shipments will be finalized within 2022, Borusan said, without providing details on the tonnage.

Borusan is increasing its investments in Turkey and abroad and is currently building a pipe service center in Ploiesti, Romania, which will focus on meeting the European automotive sector’s special pipe requirements.

This is the company’s second investment in Europe after Italy, where it is able to produce 28,000 mt/year of cold-drawn special pipe at its Vobarno plant.

The company also has a 300,00 mt/year electric-resistance welded pipe mill in Baytown, Texas, where it is planning to increase the capacity and widen its product range.

In Turkey, Borusan’s mill capacities are 750,000 mt/year of ERW pipes and 300,000 mt/year of spiral pipes.

— Cenk Can

Sentiments were cautiously bullish in the EU hot-rolled coil market July 19, despite the start of the traditional summer wind-down period.

Platts assessed hot-rolled coil in Northwest Europe stable at Eur855/mt ex-works Ruhr on July 19.

Market participants reported higher offers at Eur880-900/mt ex-works Northern Europe on the day, but tradable levels remained lower in a range of Eur850-860/mt ex-works Ruhr.

A mill source reported deals at Eur850-875/mt delivered Ruhr ex-Italy, the equivalent of Eur840-865/mt ex-works Ruhr.

In South Europe, HRC was also assessed stable at Eur780/mt ex-works Italy.

“We are trying to reach the point where domestic HRC prices start with an eight,” a mill source said.

Offers were indeed heard at Eur800/mt ex-works Italy on the day, with deals reported slightly lower at Eur780-790/mt ex-works Italy.

Trader sources had mixed expectations on tradable value, reporting prices of Eur770-780/mt and Eur800/mt as achievable in the current market, both ex-works Italy.

Another mill source saw indications of demand recovery in the Italian market, although overall activity remained low given the holiday period.

“This week a lot of people went on holiday but even now the market is more alive than it was a few weeks ago,” the second mill source said. “It’s a good sign – maybe not a full-scale recovery, but at least a slight rebound. Imports are stable and current exchange rates and lead times mean they’re unattractive to buyers which will help domestic recovery.”

Offers for import material were heard at Eur750-760/mt CFR Italy ex-Asia on the day. Cheaper material was reported from the Turkish market, although offers were scarce given recent holidays and a wait-and-see sentiment as exporters gauged acceptable price levels in the market.

A trader saw an offer for Turkish material at Eur730/mt CFR Italy ex-Turkey, duty included.

— Benjamin Steven, Maria Tanatar

Cleveland, Ohio-based distributor Majestic Steel has acquired Claxton, Georgia-based steel buildings manufacturer Quicken Steel, Kallanish learns from a company update.

According to Majestic Steel, the acquisition of Quicken Steel and the California-based transportation company Mercury Transport aligns with the company’s current growth strategy and provides a unique opportunity for expanding into downstream markets.

“Quicken Steel is an opportunity for us to provide our existing solutions downstream where we believe steel is critical to the future of building. We were attracted to their growth-oriented business model, focus on short customer lead-times, and commitment to sustainability,” says ceo Todd Leebow.

Steel buildings manufacturer Quicken Steel will continue to operate independently but will take advantage of Majestic Steel’s resources in order to increase efficiency, shorten lead times, and create synergy between the company’s divisions.

Majestic Steel believes these latest acquisitions will build upon the company’s previous acquisition of West Coast-based service centre chain Merit Steel USA last year.

“These strategic investments further Majestic’s commitment to customer service, supply chain reliability, and innovation in steel,” Leebow adds.

Zach Johnson USA

Derichebourg has resumed the operation of its rail connection at its German site in Karlsruhe, which was idled for a year and underwent repair, Kallanish learns.

Karlsruhe has a port on the Rhine River, but for a long time could not serve customers inland. Together with Deutsche Bahn’s freight transportation unit DB Cargo, it has reinstated a monthly service of ten cars with 50 tonnes of scrap each. It is in talks with DB Cargo for more cars in the future.

The French scrap merchant has already been cooperating with DB Cargo at its German sites in Nuremberg and Reuth in the Vogtland region. For those two sites, DB Cargo ships some 146,000 t/year, which is more than half of the total tonnage of Derichebourg in Germany, and which will increase with the reconnection of Karlsruhe.

Meanwhile, the French parent company reported an increase in revenue for its international recycling activities by 70% in the first-half fiscal year, or October 2021-March 2022, to €2.07 billion ($2.12 billion). The pre-tax profit (Ebitda) of the recycling segment rose by 51% to €153 million. Its sales of steel scrap grew by 20% to 2.4 million tonnes.

The increase is largely attributed to the acquisition of Ecore, without which the tonnage would have been 10% lower year-on-year, mostly due to subdued activity in the automotive industry.

Christian Koehl Germany

Demand for Italian plate remains weak this month, but some purchases did take place at the beginning of July to replenish stocks before the August summer break.

Local plate producers are cutting output to balance supply with demand but the weak appetite for both imported and domestic material is causing values to continue to decline, Kallanish hears from market participants.

Stocks at service centres remain high. They do not see demand resuming from their clients before the end of the month and lament that they are receiving plate bought in April at €1,400-1,450/tonne ($1,436-1,487/t) ex-works for grade S275.

At present, domestic prices for S275 are at €1,000-1,020/t ex-works, depending on volumes, but transactions are heard taking place at €950/t ex-works. Asian-origin imported plate is at some €860-900/t cfr Italy for October delivery. Trading sources say S275 in consignment at ports is abundant and being bought at €930-950/t ex-works, while 355 is bought at €970-980/t ex-works.

The 355 plate grade is in greater demand at present and less available. Considering the weak market, Italian sources believe prices will reach €900/t over the coming days and stabilise at this level until September.

Natalia Capra France