Day: 3 August 2022

European hot-rolled coil prices were stable Aug. 2, though cheaper material was available from some German mills.

Market sources continued to report Eur850/mt ex-works as the tradable level for the general Northern European market – though deals were reported as low as Eur780/mt ex-works on the day for excess volumes rejected by OEMs and redirected to the spot market.

These deals – reported at Eur780-800/mt ex-works Ruhr – were unanimously characterized as non-representative of workable price levels by distribution sources, only offered to a limited pool of customers.

The market was otherwise heard as quiet in Northern Europe with little transactional activity.

“The market is silent,” said a service-center source. “Demand from automotive is definitely recovering, so hopefully this allows prices to rise again. The big question remains – will mills and other industries have enough gas this year.”

Gas concerns are prevalent in the market related to ongoing geopolitical uncertainties, with speculation that production costs could be driven much higher if gas supplies are further restricted.

HRC in Northern Europe was assessed stable Aug. 2 at Eur850/mt ex-works Ruhr.

In the Southern market, HRC was also stable at Eur780/mt ex-works Italy.

The majority of sources saw the spot price level at Eur780/mt ex-works – with only one service center reporting higher at Eur780-800/mt ex-works Italy.

— Benjamin Steven, Maria Tanatar

Turkish deepsea import ferrous scrap prices rose August 2, as collection issues restricted scrap supply, sources said.

S&P Global Commodity Insights assessed the Platts Turkish imports of premium heavy melting scrap 1/2 80:20 Aug. 2 at $352/mt CFR, up $4.50/mt from Aug. 1.

“We have very low inflow and massive problems getting scrap shipped by barge, so there is no possibility of exports for us,” an EU recycler said before citing a minimum workable value of $400/mt, due to low water levels affecting freight rates.

“Inflow is low at the moment and it looks like everyone is just waiting,” a second EU recycler said. A third source corroborated the collection issues Europe is currently facing.

According to a trader, scrap exporters are also unwilling to sell scrap at the moment, opting instead to hold on to their cargo and prop up market prices.

“I, for one, will not sell until mid-September,” stated the third EU recycler, “I think the big players can wait until the August vacation period is over.”

Platts then heard a reported firm bid for premium HMS 1/2 80:20 at $330/mt CFR, which was rejected by a seller.

As a result of the restricted supply, a source said “mills hate the prices they have to pay, but there is no European supply to choose from.”

On Aug. 2, multiple sources shared details of an unconfirmed deal booked for US-origin HMS 1/2 80:20 at $352/mt CFR.

Both parties that were mentioned by several unrelated sources later denied involvement in the trade.

— Abdi Salad

Belgian wire specialist Bekaert forecasts a particularly volatile market for the reminder of the year due to macroeconomic and geopolitical uncertainty. The company vows to adapt to market condition changes and will insist on its “pricing discipline” to offset inflation, it says in its first half-year earnings report monitored by Kallanish.

Despite increasing volatility, cost inflation, supply chain disruption and Covid-19 lockdowns in China, Bekaert grew H1 revenue 24% year-on-year to €2.8 billion ($2.8 billion) thanks to high prices and strong demand in the first months of the year.

The company is now focusing on addressing the “ongoing deglobalisation trends, securing supply continuity … adjusting sourcing channels affected by logistic and other supply disruptions,” it observes.

Bekaert is investing in increasing its market share in low-carbon concrete reinforcement products and successfully participating in offshore energy tenders. It is strengthening its presence in the green hydrogen sector, and developing products and services for the energy transition.

H1 Ebitda stood at €381 million, a 5% y-o-y increase.

Natalia Capra France

CPL Industries has delivered to Sidenor the first commercial trial of Ecoke for the Spanish electric arc furnace-based producer’s Basauri site.

“We are immensely proud to support Sidenor’s robust sustainability agenda. Sidenor’s credentials in reducing CO2 emissions and decarbonisation strategies are already very advanced and we were able to identify a natural fit between our businesses to pursue a common goal,” CPL Industries Solid Fuels chief executive Jason Sutton says in a note seen by Kallanish.

Ecoke, initially launched in October 2021, contains a minimum of 30% fully renewable biomass and has significant potential to reduce carbon emissions in blast furnaces, electric arc furnaces, ferroalloy and soda ash production. CPL has a total production capacity of 500,000 tonnes/year of ecoke. Earlier this year, it delivered the first commercial trial of 50t to Liberty Speciality Steels in Rotherham.

“Where no two furnaces react in quite the same way and no two industries share identical demands, our aim is to develop customer-specific grades and blends to maximise the production and carbon saving benefit,” says Solid Fuels managing director Steve Anson. “We look forward to developing our commercial relationship and technical cooperation with Sidenor over the coming months and years to mutual benefit.”

Adam Smith Poland