Day: 4 November 2022

Chicago, Illinois-based US service centre chain Ryerson has acquired California-based fabricator and processor Excelsior, Kallanish understands.

According to a notice published by Ryerson, the company has added the metals fabricator located in Fresno, California, to its expanding network due to its advanced, specialised metals processing and fabricating operations.

“Excelsior has built a strong reputation for advanced processing and customer service. This acquisition strengthens the Ryerson network of value-added service centres, allowing us to provide better experiences and an extended suite of metal processing solutions for customers in the western United States,” says Ryerson’s west region president Steve Bosway.

This latest acquisition by Ryerson follows the company’s previous acquisition of the Midwestern value-added processor Howard Precision Metals earlier this fall.

“Since 1996, Excelsior has served customers with the equipment and expertise to exceed their expectations. We are pleased to continue that legacy as the newest member of the Ryerson Family of Companies,” adds Exclesior ceo and founder Ray Roush.

Ryerson plans to announce its earnings results for the third quarter later this week.

Zach Johnson USA

European flat bar producers petitioned the EU Commission (EC) to initiate an antidumping investigation against flat bars imported from Turkey and China, according to a letter sent to the Turkish Steel Producers’ Association from the Turkish Ministry of Commerce,

The HS code of the product in question is 7216.50.91 under Customs Tariff Position, Kallanish notes.

In the event that an anti-dumping investigation is initiated by the EU, it will be evaluated whether the imports of flat bars from these two countries are dumped and whether they cause damage to the European domestic market. If it is determined that there is dumping, an AD duty is likely to be imposed on flat bar imports from these countries.

Burcak Alpman Turkey

French rebar demand is now stagnating after a weak October. November is seasonally a weak month for sales due to the bank and bridge holidays of 1 and 11 November.

Distributors tell Kallanish that sales activity was acceptable in September but noticed slow sales in October, while this and next week are particularly quiet.

Because of uncertainty and the slowing global economy, the construction sector is ordering lower volumes and refusing to commit. Sellers doubt that in this climate buyers will want to restock for end-year fiscal reasons, as construction companies are facing slow private residential sales, particularly in the usually dynamic Paris area.

French rebar contracts continue to slide due to lower consumption. Including size extras, they are at an average of €800-850/tonne ($780-828/t) delivered. The low and high points of the range depend on client and tonnage, sources suggest.

Some lower-priced sales are being reported, particularly in southern France, coming from Spanish producers.

Natalia Capra France

Spanish crude steel production fell 19% year on year to 1.02 million mt in September, taking underlying production to a 16-month low, according to data published by industry group Unesid Nov. 3.

Production over the last 12 months, which accounts for seasonal slowdowns, was 13.5 million mt, the lowest since the 12 months to May 2021, the data showed.

Despite government measures implemented in June to reduce the impact of energy costs, a number of producers will continue production cuts into the fourth quarter.

Among these are ArcelorMIttal Spain, which agreed Sep. 30 to a temporary layoff scheme until year-end that will impact workers in line with production — 25% at the 4.5 million mt/year Asturias plant and 40% at the Sagunto cold-rolling, galvanized steel site, 20% at the Etxebarri steel plate site, 60% at the Lesaka finishings site and 20% at the longs site in Olaberria, according to the UGT FICA Union.

Also, Ferroglobe told S&P Global Commodity Insights Oct. 25 it would extend a temporary layoff plan at its Sabon, Boo and Monzon production factories from November potentially until 2024, having already temporarily shut down the furnaces at all three and reduced activity to a minimum.

“The existing situation and the lack of prospects for improvement of the energy problem has forced the company to take this decision,” the company said.

Platts assessed hot-rolled coil CIF Antwerp at a midpoint Eur625/mt Nov. 2, up Eur5/mt on the day. Platts is part of S&P Global Commodity Insights.

In terms of scrap recycling, Spanish volume in September was down 23% year on year to 788,000 mt, with the trailing 12-month total at 10.3 million mt, its lowest since the year to April 2021, Unesid figures showed.

— Gianluca Baratti

German steel and metals distributor Klöckner expects the fourth quarter of 2022 will see a drop in shipments and sales on previous quarters due to destocking and a steel price correction, it said in its earnings outlook.

In Q3 2022 shipments were at 1.15 million mt, down 6.5% from Q2’s 1.23 million mt and 4.1% lower than in Q3 2021.

Q3 sales fell on the quarter to Eur2.5 billion ($2.4 billion), from Eur2.6 billion in Q2, but rose compared with Eur2 billion in Q3 2021.

In the first nine months of 2022, Klöckner sales jumped 36.5% to Eur7.4 billion, mainly due to higher steel and metal prices, while shipments fell 3.7% to 3.63 million mt.

“Despite the challenging economic environment, we have continued to systematically pursue our strategy and achieved key milestones,” CEO Guido Kerkhoff said.

The company said it was continuing to focus on the delivery of reduced-CO2 steel, after it launched in September its new Nexigen brand.

“With the launch of Nexigen, our new brand for CO2-reduced products and services, we are underscoring our ambition as a pioneer of a sustainable steel industry. Having already established our role as digital pioneer for the future of our industry, this further reinforces our position as a reliable partner at our customers’ side,” Kerkhoff said.

According to Platts, a unit of S&P Global Commodity Insights, hot rolled coils prices ex-works Ruhr over Q3 fell from Eur985/mt base ex-works to Eur895/mt base ex-works. Platts assessed hot-rolled coil in Northwest Europe stable day on day at Eur650/mt ex-works Ruhr Nov. 2.

— Annalisa Villa

The UK hot-rolled coil market was bearish the week through Nov. 3, with distributors continuing to refrain from restocking on confused price direction and potential further downtrend.

Platts assessed hot-rolled coil in the UK down GBP10/mt Nov. 3 at GBP700/mt DDP West Midlands.

Offers from European mills were heard at GBP680-690/mt DDP West Midlands, as reported by stockholder sources.

Domestic material was available slightly above the GBP700/mt level, at around GBP710/mt DDP UK.

Third country import material was lower at GBP660-670/mt DDP, though buyers continue to avoid said material due to lead times well into next year – too distant to risk devaluation of material on continuing market uncertainties.

Domestic and European mills were heard as able to offer delivery for late December or early January.

Distributors are still burdened by expensive, often delayed material booked earlier this year in the wake of the February-March pricing rally. Stockholder strategies continue to focus on depleting stocks over new purchasing, though some limited demand revival was speculated for December if not late-November.

“Activity levels are ticking over, and stocks are coming down – admittedly not as fast as we’d like,” said a trader source. “Getting rid of old high-priced stock is the name of the game at the moment, though as prices slide lower-priced stock can quickly become higher-priced, relative to spot trade. That said, I could see some booking coming in toward the end of November, but no one can say for sure.”

Stockholders commonly saw uncertain price direction as limiting any potential for substantial purchasing.

“It’s all very scary to be honest and no one has any confidence to book anything,” one said. “We’ve already taken a hit recently on our stock positions.”

Another stockholder agreed.

“We really need to see some positivity,” he said. “Of course, we all want prices to stabilize and rise but let’s not kid ourselves, there needs to be some substance to that before we commit to heavy buying.”

As such, most sources, including producers, expect activity to remain muted for the rest of the year.

Further downstream, end-user demand indications were mixed. Some said enquiries had improved on week, while others saw a slight lull after increased activity in October. A mill source tied reduced activity to the construction sector, structuring purchasing more on long-term contracts as far as April, rather than on the spot market or via shorter term agreements.

Platts is part of S&P Global Commodity Insights.

— Benjamin Steven

Delivery time for domestic hot-rolled coil remained short from European mills — from three to six weeks — as steelmakers struggled to fill order books due to weak demand, market sources said Nov. 3.

A majority of steelmakers have not yet announced prices for the first quarter of next year.

Domestic prices, in the meantime, remained fairly stable, although some steelmakers have been willing to give discounts to secure sales. This supported bearish sentiment in the market and prompted buyers to refrain from making new deals.

Platts assessed hot-rolled coil in Northwest Europe stable day on day at Eur650/mt ex-works Ruhr Nov. 3.

A mill source reported tradable value at Eur650/mt ex-works Ruhr.

A distributor source reported offers at Eur660/mt ex-works Ruhr for January production. The source saw tradable value at Eur650/mt ex-works Ruhr for this year delivery material.

A service center source reported offers at Eur650-660/mt ex-works Northern Europe.

A trader source and a service center reported tradable values at Eur640-650/mt ex-works Ruhr and at Eur650-660/mt ex-works Ruhr, respectively.

“No mill is giving first-quarter delivery prices,” a German service center source said. “Mills still have empty order books. They have been offering new production HRC with delivery within four to six weeks, which means they do not have enough orders for this year. Offers are Eur650-660/mt ex-works Germany, but mills also send notes that they are open to receive firm bids.”

Another Northern European service center confirmed this, saying that there were no offers for next year yet.

“Not that I know of any first-quarter offers,” he said. “Nobody knows what to do. And mills need the work now! Delivery times are three to four weeks.”

Platts assessed domestic HRC in Italy at Eur655/mt ex-works Nov. 3, up Eur5/mt day on day.

The assessment was based on achievable prices estimated by market sources at Eur650-660/mt ex-works Italy.

Demand remained low, with no transactions heard Nov. 3. High stocks of distributors, low demand from end-consumers and a generally uncertain outlook on demand and prices left trading activity slow. Lack of clarity on a pricing strategy from the mills for the start of 2023 has also not supported buyers’ interest in new deals.

Some sources also said European steelmakers have focused on monthly or quarterly contracts with big buyers instead of yearly or half-year contracts due to volatile prices and due to the fact that this year buyers have not booked full volumes specified in the contracts.

Platts is part of S&P Global Commodity Insights.

— Maria Tanatar, Benjamin Steven, Anqi Liu

A pessimistic outlook and slow consumption among end-users resulted in prices falling in the Northern European rebar market in the week ending Wednesday November 2.Fastmarkets’ weekly price assessment for steel reinforcing bar (rebar), domestic, delivered Northern Europe, was €800-860 ($790-849) per tonne on Wednesday, down by €50-60 per tonne from €850-920 per tonne last week.

Weak consumption and a continued wait-and-see attitude among buyers kept the rebar market static in Northern Europe.

Discounted prices have failed to boost trading activity so far, market sources said.

“Customers are not in the market to buy,” one producer source said. “Instead, they just want to wait. Everyone is chasing volume, but no one wants to buy.”

While some market participants forecast further price drops, others believed that the price floor has been reached.

“I don’t forecast price increases,” one buyer source said. “However, I think the floor price has been reached.”

The low consumption has been largely a consequence of postponed or cancelled construction projects, especially in the private sector. No recovery was expected before the end of the year, sources said.

With so few transactions taking place, it has become more difficult to gauge the true market price, Fastmarkets heard.

“Demand remains very low and there is little buying activity,” one buyer source said. “This makes it very difficult to work out price levels. If no one is buying, working out tradeable values becomes impossible.”

If demand does not pick up but energy costs surge again, mills may cut output further, Fastmarkets heard.

International scrap prices affect the price of all long steel products. Scrap prices stabilized in mid-October.

Fastmarkets’ daily calculation of the index for steel scrap, HMS 1&2 (80:20 mix), North Europe origin, cfr Turkey, was $354.41 per tonne on November 2, up from $351.83 per tonne a week earlier.

Published by: India-Inés Levy

Sluggish demand and an uncertain outlook continued to limit market activity in the European hot-rolled coil markets on Thursday November 3.Customers, forecasting further price drops, remained in wait-and-see mode, and no rebound in demand was expected in the remainder of this year, sources said.

Fastmarkets calculated its daily steel HRC index, domestic, ex-works Northern Europe, at €646.25 ($638.18) per tonne on Thursday, down by €3.33 from €649.58 per tonne on Wednesday.

The latest calculation of the index was down by €11.58 per tonne week on week and down by €103.75 per tonne month on month.

Few deals were reported, and market conditions remained depressed in the HRC market in Northern Europe. Negotiations between automotive companies and mills regarding contracts were continuing, with no finalized deals reported.

Buyers’ estimates of workable prices were reported at €630-660 per tonne exw. One deal was heard by a buyer at €650 per tonne exw.

“There is hardly any buying activity,” one buyer source said. “I do not expect any recovery until the end of the first quarter of 2023.”

Production cuts have not yet affected prices or demand, and further output cuts may be required to boost price levels, sources said.

Fastmarkets’ calculation of its daily steel HRC index, domestic, exw Italy, was €660.00 per tonne on Thursday, up by €5 per tonne from €655.00 per tonne on Wednesday.

The latest calculation of the Italian index was down by €18.13 per tonne week on week and down by €95 per tonne month on month.

Depressed customer sentiment, persistent overstocking and sluggish demand have resulted in a static market. Current buyers’ estimates of tradeable prices were reported at €650-700 per tonne exw.

Published by: India-Inés Levy