Day: 11 October 2022

Kaltenbach.Solutions GmbH develops innovative digital solutions for the steel processing industry and mechanical engineering. Internally, the company uses digitalization and future-oriented management methods for efficient cooperation between all areas of work. In order to set ambitious goals and make concrete steps along the way transparent, the core team of Kaltenbach.Solutions will define so-called Objectives and Key Results (OKRs) from the 4th quarter of 2022. The agile management method from Silicon Valley will be introduced with the support of Anna Pflug, an expert in organizational development from Freiburg.

Finnish stainless steelmaker Outokumpu said Oct. 7 it will continue to restrict ferrochrome production by delaying the return of one of its three ferrochrome furnaces at its Tornio facility due to high electricity prices at least until the end of the first quarter of 2023.

At the beginning of September the company delayed its decision to restart the furnace after a maintenance break begun in August.

“Unfortunately, the situation in the energy market has not eased,” said Martti Sassi, President, business area Ferrochrome. “But the high price of electricity continues to have a negative impact on our cost competitiveness compared to our competitors, mainly from outside Europe. The possible further delay of the restarting of the furnace is a difficult but potentially necessary measure in an utterly exceptional situation.”

The furnace that has been shut down accounts for about 30% of the entire company’s ferrochrome capacity, Outokumpu said in a press release. It added that the continued restriction of ferrochrome production would not affect its stainless-steel deliveries.

According to the company’s website, ferrochrome production in Tornio dates back to 1968, following the discovery of chrome ore deposits in Kemi in 1959. There are three ferrochrome smelting furnaces in Tornio, with the newest beginning operation in 2013, doubling ferrochrome production capacity to 530,000 mt/year.

The company’s 2021 total ferrochrome production was 514,886 mt, according to a spokesperson.

Platts, part of S&P Global Commodity Insights, assessed ferrochrome 65% 6-8% high-carbon DDP NWE up by $42/lb since the beginning of the year to $230/lb.

— Annalisa Villa

Domestic ferrous scrap prices in Northern Europe remained largely stable month on month in October, as export demand supported pricing despite relatively soft domestic mill demand, sources told S&P Global Commodity Insights Oct. 10.

In Northern Europe, the Platts assessment for domestic shredded scrap was at Eur360/mt delivered to the mill Oct. 10, unchanged month on month.

“Demand remained quite OK, with no big decreases or changes,” one European mill source said. “On the supply side, [domestic] availability was limited due to focus of the suppliers on export, which has been supported by the weak euro versus the US dollar.”

Platts assessed the euro at $0.9686 Oct. 10 at 4:30 pm London time, down from $0.9834 at the beginning of the month.

Market sources cited workable levels between Eur355-365/mt delivered to the mill in Northern Europe.

Firm bulk ferrous scrap demand from India and Bangladesh, as well as recent restocking from Turkish mills, usually the largest volume importers of bulk seaborne scrap cargoes, has maintained domestic scrap prices in mainland Europe at relatively stable levels over the past three months.

Platts assessed Turkish bulk imports of premium heavy melting scrap 1/2 (80:20) Oct. 10 at $372/mt CFR, up from $354.50/mt CFR a month ago on Sept. 9.

In September, the Platts Northern Europe domestic shredded scrap index was at $352.33/mt delivered in US dollar terms, while the Platts weekly shredded scrap bulk export Rotterdam index was at $359.50/mt FOB Oct. 7.

This meant domestic shredded scrap sat $7.17/mt below export prices Oct. 10.

Platts’ assessment for Southern European shredded scrap was at Eur357.50/mt delivered to the mill Oct. 10, down from Eur362.50/mt delivered in September.

One Italian long steel producer had targeted shredded scrap around Eur340/mt delivered during the week started Oct. 4, but toward Oct. 10, indications largely ranged within the Eur350-360/mt delivered range as Italian domestic scrap demand slowly recovered.

Domestic Italian steelmakers resumed crude steel production in Italy, helped by the Aiuti-ter decree issued by the Italian government to help ease some costs of energy-intensive companies such as steelmakers and large rerollers, allowing some to restart production at the beginning of October, following a number of stoppages over August and September.

The Aiuti-ter decree grants energy-intensive companies a tax credit equal to 40% of their expenditure for the energy they purchase and effectively use in October and November 2022.

Most Italian steelmakers have also welcomed news that the European Commission was considering options for a possible EU-wide energy price cap, but no agreement has been reached among EU member states regarding what shape any such price cap mechanism could take.

In Spain, recyclers considered Eur360/mt delivered for shredded scrap as workable, down from around Eur370/mt delivered one month earlier, with domestic mill scrap demand estimated to be only at 65% versus a normal October.

— Viral Shah, Annalisa Villa