Day: 28 July 2022

En el siguiente enlace pueden acceder a la edición de Julio de nuestra revista:  InfoAcero Julio 22

A continuación destacamos algunos de sus contenidos:

• Opinión – D. Enrique Gimeno – Junta Directiva  UAHE. 
• Evolución del Índice de Precios de Productos Siderúrgicos – UAHE
• Construcción:  Sumario del informe Euroconstruct- Junio 2022
• Sector Siderúrgico: Previsión sectores consumidores de acero- construcción, automoción e ingeniería mecánica – Informe Eurofer 2º trimestre.
• Próximos Eventos: Reunión regional Sur de Europa- Eurometal ( 14, 15 Septiembre, Milán),
• Metal Madrid (19 y 20 de octubre, Madrid)

European domestic steel sections prices continued to soften in the seven days to July 27 because of weak seasonal demand ahead of summer holidays.

The Platts European medium sections price (category 1, S235 JR) assessment was at Eur1,175/mt delivered July 27, down Eur17.50/mt on the week, according to S&P Global Commodity Insights data.

A European mill source placed a tradable value for category 1 medium sections around Eur1,200/mt delivered, adding that the mill received bids around Eur1,150/mt delivered but they were not accepted due to high gas and electricity costs. “It is getting hectic, and forecast says it is going to a real situation,” the source said. Italy will be on summer holidays over Aug. 6-29 and no business will be conducted, according to the source.

A Benelux-based distributor said demand was quiet because of varying holiday periods in Europe spanning from end-July to the first three weeks of August.

The market was also grappling with high energy costs and low capacity of transported volumes through ships amid a heat wave in some European countries. “Water level is getting low so ships can only carry 40% of their usual weight. If you transport less through ships, you have to accommodate that by road so there will be a backlog,” the distributor said. The source placed a tradable value for beams at Eur1,180-Eur1,200/mt delivered.

Another distributor source in the Benelux region cited a deal for 500 mt category 1 medium sections at Eur1,150/mt delivered Benelux. The source said current demand was almost half the average level as most customers are on holiday.

Northwest European domestic rebar prices also fell in the week to July 27. The Platts TSI Northwest Europe rebar assessment was down Eur20/mt at Eur985/mt ex-works July 27, S&P Global data showed.

A distributor source in the Benelux region placed a tradable value at Eur995/mt delivered Benelux, while a seller source cited a workable level for domestic rebars at Eur1,000/mt delivered.

— Rabia Arif, Staff

Steelmaker Tata Steel has invested GBP6 million ($7.2 million) to upgrade its Trostre plant in Llanelli, Wales, it said July 27.

Danieli was the key contractor of the six-week project, which initially ran over December 2021 and January 2022 and included completely replacing all the control drives of the site’s continuous annealing process line, or CAPL, with a new system.

“The line capacity will improve by around 10% due to better availability and speed of work from around 7,000 mt/week to around 7,700 mt/week,” a Tata Steel spokesperson told S&P Global Commodity Insights.

The CAPL softens strip steels before they are made into cans for food, aerosols and paint.

“This is one of the biggest single investments in Trostre in recent years and allows us to run the line faster and for longer, removing a key bottleneck at the plant,” Works Manager Joe Gallacher said in a statement, adding that 70% of the plant’s output went through the processing line.

When asked if there were any other investment or upgrades planned for the plant, the spokesperson said the company was expecting to be able to announce further investments at the plant soon, including automatic online inspection and product shape control.

Tata Steel aims to reduce its CO2 emissions by 30% by 2030 and produce net-zero steel by 2050 in the UK.

— Jacqueline Holman

European hot-rolled coil market activity was dull July 27, with HRC prices stable on the day across the continent despite a more positive sentiment as summer winds down.

Platts assessed HRC in North Europe unchanged at Eur855/mt ex-works Ruhr July 27.

Distribution sources unanimously said Eur850/mt was tradable on the day, while producers said achievable prices were slightly higher at Eur850-Eur860/mt ex-works Ruhr.

A service center source cited an offer at Eur850/mt delivered Benelux ex-Germany. The source said there was an equivalence between delivered and ex-works prices despite estimated delivery costs at Eur20/mt, with German buyers expected to successfully achieve Eur850/mt ex-works in biddings.

A mill was already offering higher in the market at Eur900/mt ex-works Northern Europe, and sources said other mills could announce increases soon.

“Most are predicting an offer increase now or in the very near-term,” said a trader source. “I heard ArcelorMittal are telling some customers to expect a Eur50/mt price rise.”

Market participants expect other mills to follow suit if ArcelorMittal raises its offer level, but no announcements were made on the day.

South Europe HRC was also assessed stable at Eur785/mt ex-works Italy.

Latest offers are at Eur800-Eur820/mt ex-works Italy, according to distribution sources. No new offers were extant in the Italian market with one electric arc furnace producer undergoing scheduled shutdown and an integrated producer not actively offering.

Buyer sources said achievable prices were lower at Eur770-Eur790/mt ex-works, with a producer source agreeing.

Scarce transactional activity present was focused at Eur780-Eur800/mt ex-works, with deals reported by a distributor. “Demand is still low, and buyers are only taking what is desperately needed,” said the source. “Sliding import offers are also pressuring the market and widening the gap between domestic and foreign prices, but buyers aren’t interested in either at the moment.”

Import offers were around Eur690/mt CIF Italy ex-Asia, and Eur720/mt CIF Italy ex-Turkey, duty included, according to sources.

— Benjamin Steven, Maria Tanatar

Downstream coil prices edged lower on the week on July 27, with transactional activity muted on minimal demand amid the traditional summer wind-down.

Platts assessed cold-rolled coil in Northern Europe stable on the day at Eur955/mt ex-works Ruhr, while Southern European prices moved down Eur15 to Eur875/mt ex-works Italy.

In Northern Europe, buy-side regarded prices of Eur950/mt ex-works as achievable, while producer sources reported a tradable value at a range of Eur950-960/mt ex-works Ruhr.

In the Italian market, the workable range was wider, reported at Eur865-900/mt, with most indications concentrated at Eur870-880/mt, both ex-works Italy.

For hot-dip galvanized material, the North European price was down Eur20 on the week at Eur980/mt ex-works Ruhr. South European HDG also edged lower by Eur5, assessed by Platts at Eur895/mt ex-works Italy.

A service center source reported tradable value in Northern Europe at Eur950/mt ex-works Ruhr based on an offer heard at Eur950/mt delivered Benelux ex-Germany. The source expected the same price level to be achievable for German customers.

Producer sources disagreed, however, seeing the workable higher at a respective Eur980-1,000/mt and Eur1,000/mt, both ex-works Ruhr.

“Galvanized prices are already very close to production costs on current gas and energy costs,” a mill source, who considered Eur950/mt ex-works as unworkable, said.

In the Italian market, the lowest indication was cited at Eur880/mt ex-works, with most pricing HDG at Eur890-900/mt ex-works.

Recent demand for downstream coils has been muted alongside other flat steel products due to the traditional summer wind-down and high stock levels in the market.

Distributors had reportedly structured orders based on booming activity in 2021, leaving them with far more material on stock than usual for this period in the year given reduced demand from end-consumers and key industries such as automotive.

According to one service center source, HDG prices were holding up better than those for CRC due to competitive CRC import offers and reduced automotive demand.

Sentiments for the automotive industry were improving, with sources reporting increasing call-offs for later in the year. However, many in the market remained skeptical given the length and lack of substantive evidence for recovery.

There has been an absence of import offers for galvanized coil, aiding prices somewhat; meanwhile, Southern European import offers for CRC were heard at Eur820/mt CFR Italy ex-India and at Eur815/mt CIF Italy ex-Japan.

An offer for boron-added CRC into Northern Europe was reported on the day at around $820/mt CFR Antwerp ex-India, converted to Eur810/mt on the daily Forex.

— Benjamin Steven, Maria Tanatar

The European longs market has been quiet this week, as rising input costs forced most producers to pause trading, with many mills and buyers sitting on high inventory levels. The Argus weekly Italian rebar and drawing-quality wire rod assessments were flat at €865/t ex-works and €910/t delivered, respectively.

In Italy, some producers were withholding offers this week, with some already shut for the summer maintenance period, an Italian market participant said. Tradeable values for Italian rebar remained at €860-880/t ex-works, although offers rose to more than €900/t ex-works last week. Because of rising energy costs, supply is expected to be limited after the summer break and producers are expected to prioritise sales to higher-priced markets.

Rebar in coils from Italian mills was indicatively quoted at €1,000/t delivered and above to Germany and €900/t delivered to eastern European markets, but negotiations are expected to resume after the summer break. Meanwhile, German producers are pushing prices to around €950/t delivered domestically, or somewhat lower for other destinations. But trade has been muted for the past two weeks during summer holidays and traders have lower-cost inventory, which can be sold at lower levels should there be pockets of demand. “Demand will remain quiet for a few weeks until the holidays are over, but it is hard to make predictions for the rest of the year given uncertainty over gas supply,” said a German market participant. Rising energy costs could crimp demand while exerting upwards pressure on steel prices, which is why market participants are taking a cautious approach.

Rebar offers from local producers in Poland stood at 4,000-4,100 zloty/t (€835-855/t) delivered and similar levels were reported to nearby countries on delivered terms last week. Producers announced increases but no one will buy at such high prices, a Polish market participant said. Most distributors can replenish their stocks from the market because there is still a lot of cheaper material available from the stocks of big distributors, he added.

At the same time, most Italian producers preferred to stay out of the Balkan or other lower-priced markets, given their competitors were offering rebar at €760-770/t fob or around €800/t delivered there lately. Some southern European customers were looking to import from overseas suppliers amid a sharp drop in prices, with the Argus daily fob Turkey steel rebar assessment sliding by $55/t in the past week to $640/t fob on actual weight basis today amid limited demand and downward pressure from Asia.

Drawing-quality wire rod was quoted at €920-960/t delivered, but some producers were deemed to accept levels below € 900/t delivered for sizeable tonnages. Tunisian wire rod was heard on offer at €725/t fob, with bids coming €20/t lower. Algerian wire rod was available at $750/t fob last week. In the meantime, workable levels for Turkish wire rod fell below $700/t fob, with offers standing at more than $710/t fob.

Steel plate prices dropped again in Italy during the week to Wednesday July 27, while those in Northern Europe were stable, market sources told Fastmarkets.
Italy
Domestic steel plate prices in Italy remained under pressure this past week because of slow buying activity and cheaper imports, sources said.

Bids from large buyers were reported at €930-950 ($945-966) per tonne exw, while transactions during the assessment week were heard done between €950 and €1,000 per tonne exw.

Offers from local plate producers were heard at €1,000-1,100 per tonne exw, but the high end was considered too high for the spot market, sources told Fastmarkets.

“We mainly sell [plate] at €1,100 [per tonne exw] and higher for projects,” a mill source told Fastmarkets.

A booking of plate from Asia with October delivery was heard at €870-890 per tonne cfr.

As a result, Fastmarkets’ price assessment for steel domestic plate, 8-40mm, exw Southern Europe was €950-1,000 per tonne on Wednesday, down by €50 per tonne from €1,000-1,050 per tonne one week prior.

This assessment reflects offers, deals and market participants’ estimations of achievable prices heard during the week.

Northern Europe
The steel plate market in Northern Europe was also quiet over the past week, with buyers still overstocked with commodity grades, Fastmarkets heard.

“Buyers hold sufficient stocks, and sales are quite slow in the secondary market; everyone prefers to hold back from purchasing [new tonnages of plate],” a trading source in the region told Fastmarkets.

Mills in the region were also not in a rush to cut offer prices for the spot market, citing strong order books.

Notably, plate offers from German integrated plate steelmakers were reported at €1,400-1,450 per tonne exw in the week to Wednesday.

One mill in the region was heard offering plate at €1,350 per tonne exw, sources said.

Buyers, however, were looking to pay closer to €1,300-1,350 per tonne exw, according to sources.

As a result, Fastmarkets’ weekly price assessment for steel domestic plate, 8-40mm, exw Northern Europe remained at €1,300-1,350 per tonne on Wednesday, unchanged from a week earlier.

The assessment was a reflection of the lower end of offers and market sources’ estimates of achievable prices.

Italy-origin plate was offered to the south of Germany at €1,000-1,100 per tonne cpt, depending on volume and chemistry.

Published by: Julia Bolotova

Sluggish demand and a persistent wait-and-see attitude among customers resulted in little-to-no market activity in the Northern European domestic rebar market in the week ending Wednesday July 27.
In the week ended July 13, Fastmarkets heard how producers, most notably ArcelorMittal, were targeting significant price increases across all long steel products to counter the soaring costs of energy. These price increases, however, have not been achieved, sources said.

Fastmarkets’ weekly price assessment for steel reinforcing bar (rebar), domestic, delivered Northern Europe, was €930-1,000 ($946-1017) per tonne on Wednesday, unchanged week on week.

With demand remaining low and mills shutting down for maintenance during the summer season, trading activity remained depressed.

One source said buyers are still in a wait-and-see mode, hoping that prices will drop further. These hopes are based on the fact international scrap prices have dropped over the past week after surging in early July. This attitude, the market participant told Fastmarkets, does not account for energy cost surges as well as possible energy shortages heading into the fourth quarter.

Energy rationing, proposed by the European Commission on July 20, could, if it goes ahead, create upward pressure on energy prices.

Emergency legislation, designed to protect countries from the possibility of Russia weaponizing gas supplies over the coming months, would enable the EU Commission to impose 15% binding gas consumption restrictions on EU countries over the next two years.

Upon the proposal being accepted and the measure being passed, each country would have to decide how these cuts would be imposed.

With energy prices already exploding, news of rationing and potential implementation of rationing could drive up energy prices more. It would also make production cuts across EU steel mills very likely, Fastmarkets heard. Production cuts will likely reverse the downtrend across all long steel products, sources said.

Another source, while recognizing the impact cost increases might have over the longer term, said prices for rebar will remain the same until the end of August when the holiday season is over.

Decreasing international scrap costs since mid-April have also been a major factor in the falling rebar market. Scrap prices jumped in early July but corrected in the week ended July 20.

Fastmarkets’ daily calculation of the index for steel scrap, HMS 1&2 (80:20 mix), North Europe origin, cfr Turkey was $382.50 per tonne on July 20, down from $398.49 per tonne a week earlier.

The correction in scrap prices has continued this week, with the index most recently calculated at $351.19 per tonne on Wednesday, unchanged from a day earlier but down from $364.85 per tonne on Monday.

Published by: India-Inés Levy

Spain’s Gestamp saw overall performance grow year-on-year in the second quarter, the company says in its latest report monitored by Kallanish. Gestamp is a major supplier of components to the global automotive sector.

“Our results in the second quarter were solid despite a complicated environment marked by supply chain disruptions, microchip crisis and Covid-19,” says Gestamp executive director Francisco Riberas. “We are facing a difficult second half-year, characterised by similar uncertainty in addition to the potential gas supply restrictions in Europe and higher inflation scenario. However, as the electric vehicle transition is not slowing down, we are committed to our objectives for 2022.”

Gestamp’s first-half-of-2022 net revenue amounted to €4.87 billion ($4.93 billion), up 19.5% on-year. In Q2 alone, net revenue was €2.61 billion, a growth of 32.9% y-o-y.

The company’s H1 Ebitda was €554m, up 11.2% y-o-y. In Q2 alone, earnings before taxation were €301m, up €61m y-o-y.

Todor Kirkov Bulgaria

ArcelorMittal Bremen has integrated Smart Steel Technologies’ SST Casting artificial intelligence (AI) software, Kallanish learns from the Berlin-based software forge.

The software packages SST Casting AI and SST Surface AI are used to improve the casting process quality and reduce surface defects. The system for AI-based analysis of production data also serves as a basis for the deployment of further optimisation, SST notes.

The surface inspection system has furthermore been improved through a centralised and plant-wide display of all detections as well as the use of robust defect classification, SST notes. The software is based on its proprietary deep learning technology. SST previously implemented its solution at ArcelorMittal’s Eisenhüttenstadt mill.

Christian Koehl Germany