Day: 21 November 2022

Kaltenbach.SolutionsGmbH has developed a comprehensive browser-based industry solution for the manufacturing industry. The “Order Manager” module is part of the “Steelsuite” platform, which enables companies from the steel processing, steel trade and mechanical engineering sectors to successfully enter the digital transformation. The hardware, including the software modules, can be easily implemented on new plants as well as on existing machines from all manufacturers. The “Order Manager” then displays the current processing status of all orders in real time and thus facilitates transparent and efficient order control.

The heart of the “Steelsuite” industry platform from Kaltenbach.Solutions is the central order overview with the “Order Manager” module. Here you have an overview of all order information. The user interface has been designed so simply and clearly that it can be operated intuitively, regardless of the language of the workers. All customer orders are imported via an ERP interface and automatically adjusted in the event of changes. If an order is already being processed, a warning message appears and it is automatically deactivated. The processing itself takes place in three steps: Planning, releasing and converting.

Operators of the machine see jobs that have been released on their handhelds. Only when a step is completed does the job appear at the next workstation. This reduces complexity and promotes concentration on the current work step. On the shop floor level, only one click on the screen is required to trigger a function. This means that the system can be fully operated after only a brief introduction on the shop floor. The sales department can also see where the current orders are at the touch of a button. Since a digital image of real processes is made available online, time-consuming queries and research are no longer necessary.

About us

KALTENBACH.SOLUTIONS GmbH strives for long-term cooperation with both the processing industry and machine manufacturers and has set itself the goal of becoming a preferred partner. As a full-service provider with decades of experience in the steel industry, it develops innovative web- and AI-based industry solutions to improve performance in the area of operations. Thanks to its in-depth expertise, KALTENBACH.SOLUTIONS has succeeded in linking the world of machines and plants with the digital world. This unique link guarantees measurable success for customers worldwide and creates sustainable added value.

Press contact

Nicola ChlenchT
+800 454 0 2345
marketing@kaltenbach-solutions.com
www.kaltenbach-solutions.com

Breisach, 21 November2022

Green lead markets for basic materials such as green steel are a central policy building block on the way to a climate-neutral industry. Their basic idea is to provide targeted incentives for the use of green steel on the demand side as well, in order to enable the gradual conversion to climate-friendly processes, which are associated with high investment and initially even higher operating costs. This will relieve the burden of the necessary state start-up financing and replace it in the long term.

To this end, definitional questions must first be clarified: When is steel to be classified as green or climate-neutral? To what extent can investments be made creditable that only lead to climate-neutral steel when, in particular, sufficient green energy (electricity, hydrogen) is also available? And finally: What standards can ensure that all actors calculate and balance according to the same rules, so that different transformation paths can be compared and thus also evaluated? Clarifying these questions is urgent and important in order to be able to set the political course and give companies planning security for their investment decisions.

The German Steel Federation (Wirtschaftsvereinigung Stahl) already formulated the first key points for a definition of green steel in May 2022. On this basis, the steel companies in Germany are now presenting a proposal for a label system for climate-friendly steel that goes beyond the carbon footprint of a specific product and also takes into account transformative steps taken by companies towards emission reductions and makes them assessable in a classification system. In this way, the necessary investments for climate neutrality and the ramp-up of green steel could be stimulated and flanked in a targeted manner.

With its proposal, the steel industry in Germany wants to support the politically desired development of (lead) markets for climate-friendly products in Germany and the European Union. In addition, the industry also wants to contribute to the international discussion on the decarbonisation of basic industries. After all, climate clubs and climate alliances can only develop green markets worldwide if they are based on clear definitions. The steel industry’s proposal takes this into account by following on from and further developing a concept of the International Energy Agency that has been recognised by the G-7. Moreover, the label system is the first concept worldwide that was developed by an industry with the participation of all manufacturers.

Hans Jürgen Kerkhoff, President of the German Steel Federation, comments:

“With its proposal for a label system for green steel, the steel industry in Germany is sending a strong signal for industrial transformation. With this, we are presenting a concept that can be used as a basis for concrete discussions on how to create green lead markets, which were already envisaged in the steel action plan from 2020 and also in the coalition agreement. We hope that the German government will now quickly take up this impetus, discuss it with all relevant stakeholders and also introduce it into the ongoing international discussions at the G-7 and within the framework of climate clubs.”

by Hubert Hunscheidt

European Recycling Industries’ Confederation EuRIC, a strong proponent of the circular economy, has urged ahead of a European “trilogue” (three-way) meeting Nov. 22 that free allocation of emission allowances under the European Union’s Emissions Trading Scheme should be phased out as soon as possible so as not to “subsidize” pollution.

“The allocation system of emission allowances, based on benchmarks, grants more permits to polluting production processes than to less polluting ones, thereby subsidising pollution,” EuRic said in a Nov. 18 open letter addressed to European Commission executive vice-president Frans Timmermans, Commissioner Paolo Gentiloni, members of the European Parliament and ambassadors.

Steps should be taken to incentivize the use of scrap or recycled steel and metals instead of extracted ores in steel and metals production, it said.

A proposed extension of free allocations for some industry sectors, including steel, “was thought to be protective of industry generally…. [but] it only protects some industry players”, EuRic argued in the letter, co-signed by non-profit climate change think tank Sandbag.

EuRic groups together more than 5,500 recycling companies – generating an aggregated annual turnover of about Eur95 billion ($98 billion) – which treat household or industrial and commercial waste including ferrous and non-ferrous metals, end-of-life vehicles (ELVs), electronic waste (WEEE), packaging (paper and plastics), end-of-life tyres or textiles. Ferrous scrap is a principal input in electric arc furnace (EAF) steelmaking, which emits substantially less carbon than steel production by the integrated route.

Sandbag focuses on EU policies, including in the area of climate governance.

European steelmakers, particularly integrated companies which use iron ore and coking coal to make steel in blast furnaces, have pressed for an extension of the free ETS allowance system because this should free up more financial resources for them to invest in costly decarbonization schemes in coming years.

Plans to revise the ETS benchmarks from 2026 are set to be discussed at the Nov. 22 meeting between representatives of the European Commission, European Parliament and European Council. Arrangements for the Commission’s introduction of a Carbon Border Adjustment Mechanism (CBAM), which will tax carbon contained in products entering the EU, will also be discussed.

European industry associations, including steel producers’ association Eurofer and non-ferrous metals producers’ associations European Aluminium and Eurometaux, have recently lobbied for a “smooth phase out” of free allowances under the ETS and compensation of related indirect costs until such time as the CBAM becomes fully effective.

Currently, CBAM is expected to be implemented between 2027 and 2032.

EuRic claims that any extension of the free ETS allowances beyond 2026 could create distortions between sectors of industry that are interlinked, and deter the use of recycled materials including steel and metals scrap, which do not benefit from free allowances under the ETS scheme.

“The Commission, Council, and Parliament have proposed to extend the regime of free allocation until well into the next phase of the EU ETS, in the 2030s,” EuRic said in its letter. “We believe that the proposals perpetuate competitive distortions which are damaging to the EU’s competitiveness, its self-sufficiency, its resilience to inflation and its ability to adapt to a lower-carbon world.”

An amendment proposed by the European Council “even exempts the ‘hot metal’ steel benchmark until 2030 from any change in annual reduction rate [in free allocations] despite the forthcoming benchmark reform,” EuRic noted.

Only large industrial plants can realistically join the ETS system and have access to free allocations due to bureaucracy costs, EuRic said. Many recycling plants are unable to benefit from the system as they tend to be small-scale operations, the confederation indicated.

The proposed EU ETS reforms – expected to be completed by the end of the year – are a key part of the EU’s “Fit-for-55” legislative package, which aims to align all parts of the EU economy with an upgraded target to cut emissions by at least 55% below 1990 levels by 2030.

Primary raw materials ‘favored’

The 4th phase of the EU ETS planned for 2021-2030 has gaps that puts recycled materials usage at a disadvantage compared to primary raw materials such as ores and coals, the EuRic letter said.

“The disadvantage arises because ecological burdens from steel production from ores are not fully taken into account, as hard coal, iron ore and other non-ferrous metal ore mining are not subject to the EU ETS as they are not listed under Annex I of the Directive,” it said. These products, along with production of pellets including direct reduced iron pellets should now be included in the ETS scheme due to their levels of greenhouse gas emissions, it argued.

The recyclers’ association claims that inputs for and production by the blast furnace and electric arc furnace steelmaking routes risk not being treated equally under CBAM rules.

“While the emissions from upstream products of the blast furnace route (coking coal and sintered ore) will likely be exempted of CBAM charges, this is not the case for a key upstream product of the EAF route: direct reduced iron will be covered by the CBAM under all proposals,” the letter said.

— Diana Kinch

Tata Steel, the largest steelmaker in the UK, is installing digital scanning technology at its no. 5 blast furnace at Port Talbot in South Wales to reduce the amount of coke used in the furnace, assisting decarbonization. Similar technology was installed at the works’ no. 4 blast furnace in 2021.

The 3D scan technology, which monitors the blast furnace charging process, has the potential to save “millions of pounds every year” due to lower coke intake and will reduce CO2 emissions by at least 50,000 mt annually, the steelmaker said Nov. 17. The technology is also designed to improve the furnaces’ stability and efficiency, it said. The installation is expected to be completed by the end of November.

The CO2 savings are achieved via the more efficient use of coke and hot blast gas to reduce the iron ore input to iron, it said.

Tata Steel UK, with an annual crude steel capacity of 5 million mt/year, aims to reduce its total CO2 emissions by 30% by 2030 and be a CO2 neutral steelmaker by 2045, in support of the UK’s ambition to be net-zero by 2050.

The GBP1 million ($1.19 million) investment in ‘Topscan’ technology on the site’s blast furnace 5 complements a similar investment in 2021 on blast furnace 4, where considerable cost savings and lower emissions have already been registered, Tata Steel said.

The No. 5 blast furnace, with 10.8 meter hearth diameter and which produces some 6,000 mt of pure iron daily, underwent a life-extension project in 2018, which demonstrated Tata’s commitment to continued blast-furnace-based steelmaking and to its Port Talbot works, amid a period of speculation on the works’ future and talks with the UK and Welsh governments on potential financial support.

The India-based Tata Group has capacity for 34 million mt/year crude steel.

Topscan, manufactured by a company called Tapping Measuring Technology (TMT) uses a set of radars which take a full surface scan of the iron ore and metallurgical coke being laid into each furnace, every 10 seconds. Approximately 1,000 data points are measured every 10 seconds, said Tata Steel UK’s Blast Furnace Technical Manager Aaron Parsons.

Computer modeling gives a clear, finite view of the raw materials at the start of their journey through the furnace, Parsons said.

“The specific way in which we lay materials in the furnace is our main method of controlling gas flow up from the hot air blast through the raw materials,” Parsons said. ““Over time, we can make tweaks to the distribution allowing us to make the most efficient use of the hot gases and yield really big savings, both in terms of coke usage and CO2.”

The new system replaces seven static radars, which previously gave more approximate readings on the blast furnace charge. Changes to the blast furnace burden that previously would have taken weeks to analyze and implement can now be done in a matter of hours, according to the blast furnace manager.

Tata Steel UK announced in October that it had begun sales of certified low-CO2 steel to customers due to market demand for this type of steel.

The lower CO2 certified steel, named “Optemis Carbon Lite,” is based on CO2 savings achieved by Tata Steel in the UK and is verified by independent assurance experts DNV, a company spokesperson said in an email.

— Diana Kinch

Turkey’s coated steel coil exports, mostly hot-dip galvanized coil, fell 45% year on year in September to 139,500 mt, according to Turkish Statistical Institute data, hit by antidumping duties imposed by the European Commission and low demand in most export markets.

The EC Aug. 12 announced antidumping duties on hot-dip galvanized steel coil and sheet imports from Russia and Turkey for five years.

Turkey’s January-September exports fell 5% on the year to 1.25 million mt, hit by lower exports in August and September, as the EU is traditionally a main HDG export destination.

Exports to Spain fell 67% on the year to 140,000 mt over January-September, while shipments to Romania were relatively stable at 97,000 mt.

Exports to Greece dropped 8% to 79,000 mt, while shipments to Italy declined 46% to 67,500 mt.

Exports to Portugal decreased by 66% to 44,300 mt, while exports to Belgium dropped 75% to 41,500 mt.

However, shipments to the US rose 36% on the year at 123,000 mt, while other export destinations in the period were Canada at 52,500 mt and Egypt at 44,000 mt.

The total revenue generated from the January-September exports dropped 17% on the year to $1.56 billion, the data showed.

Platts, part of S&P Global Commodity Insights, assessed the weekly Turkish domestic HDG price at $830/mt ex-works Nov. 11, down from the 2022 high of $1,400/mt reached in mid-March.

— Cenk Can

EU heavy plate prices soften on weak demand Domestic prices for heavy plate in Europe decline in the week to Nov. 18 as demand remained reduced.

Platts assessed Italian heavy plate down Eur30/mt week on week at Eur820/mt ex-works Italy.

Deals with stockholders have been reported at Eur800-820/mt ex-works Italy. Both buyers and distributors estimated tradable value at Eur800-850/mt ex-works Italy.

Demand for heavy plate has been reduced due to seasonal slowdown as buyers have been more focused on restocking by the year end and they have only just started to plan bookings for the first quarter of 2023.

“Demand still pretty weak, this year can be considered closed in terms of required timing delivery,” an Italian re-roller said. “January is open and is very slowly increasing but all in all we cannot say that demand picked up. I think we should wait a couple more weeks.”

Domestic heavy plate price are unlikely to decline further, some sources believe, taking into the account current slab and production costs.

“The lowest import slab prices we hear are $550/mt CIF, but majority are still at $600/mt CIF and higher,” a Southern European source said. “Given the slabs price offered into EU and the current cost of production there is almost no space at all to lower plates price more.”

Platts assessed import slab into the benchmark Italian market at $575/mt CIF Nov. 18, unchanged week on week.

Offers of the semi-finished products from Asia have been reported at $580-$600/mt CIF Italy. But bids and tradable values have been heard at $540-$550/mt CIF Italy.

Slabs from European integrated mills have been available in Italy at Eur600-610/mt delivered.

Platts assessed heavy plate in Northern Europe down Eur70/mt week on week at Eur930/mt ex-works Ruhr.

Offers from a German mill have been heard at Eur900-930/mt ex-works Ruhr. And tradable values have been reported at Eur920-950/mt ex-works Ruhr.

Platts is part of S&P Global Commodity Insights.

— Maria Tanatar, Benjamin Steven

The European hot-rolled coil market was quiet on Friday November 18, with prices said to be close to the cost line, sources told Fastmarkets.

Fastmarkets assessed its daily steel hot-rolled coil index domestic, ex-works Northern Europe at €625.83 ($648.42) per tonne on Friday, down by €1.67 per tonne from €627.50 per tonne the previous day.

The latest calculation of the index was down by €19.17 per tonne week on week, and down by €57.92 per tonne month on month.

Buyers and producers indicated tradeable price levels for HRC in Northern Europe at €620-630 per tonne EXW. Most mills in the region still had December rolling coil to sell.

One mill source reported more inquiries for January-delivery coil from buyers recently and said they expected some volumes to come back to the market. But buyers remained cautious, waiting for the HRC price to bottom before making purchases.

Inventory levels at large stockholders and steel service centers remains quite high, so they could maintain a wait-and-see attitude.

Meanwhile, mill sources believe that HRC prices have already reached the bottom, with no room for further price drops given the high cost of production.

Some producer sources expect some limited restocking in December, but agreed that a price rebound was unlikely this year due to weak end-user demand.

Fastmarkets’ assessment of the daily steel hot-rolled coil index domestic, exw Italy was €600 per tonne on Friday, down by €5 per tonne from €605 per tonne the previous day. The index was down by €25 per tonne week on week, and down by €87.50 per tonne month on month.

Sources reported HRC offers from Italy’s integrated mills and rerollers at €620-640 per tonne delivered, which corresponds to €600-620 per tonne EXW.

But several sources reported transactions done by one Italian integrated mill at a lower level of €570-580 per tonne EXW.

Some market sources in Italy agreed the HRC price in the country was already at rock bottom and expect trading activity to recover in December.

“Rock bottom has been reached and no more decreases are possible. Even though no big rebound is possible before Christmas, some recovery is likely,” one trading source in Italy said.

“It seems that all the [HRC] volumes that were hidden are coming back. The import suppliers cannot compete with the EU mills, so we might see some recovery soon,” another source said.

Several sources told Fastmarkets that overseas HRC suppliers had stepped back from the Italian market by the end of this week, unable to match domestic prices.

Notably, end-of-first-quarter-delivery HRC from Southeast Asia was on offer to Italy at €560-585 per tonne CFR earlier this week.

Published by: Julia Bolotova

Steel rebar prices in Poland continued to slide during the week to Friday November 18 amid subdued trading, overstocking at buyers and bearish sentiment, Fastmarkets heard.

Official offers from three mills in the country were reported at 3,450-3,500 zloty ($760-771) per tonne CPT (3,400-3,450 zloty per tonne ex-works), compared with 3,600-3,700 zloty per tonne CPT in the first half of November.

Sources told Fastmarkets that producers were chasing volumes and were ready to cut the price on a firm bid.

But trading has remained limited in Poland, with mainly back-to-back sales reported.

Notably, transactions for tonnages of 500-1,000 tonnes were reported at 3,300-3,450 per tonne EXW during the assessment week.

Large stockholders and distributors still have quite high inventories and were focused on destocking ahead of the year-end, following the traditional cycle.

“Stockists still have enough to last them till the end of the year. Everyone is selling just to get rid of all old material,” the trading source said.

As a result, Fastmarkets’ price assessment for steel reinforcing bar (rebar), domestic, exw Poland was 3,300-3,450 zloty per tonne on Friday, down by 150 zloty per tonne from 3,450-3,600 zloty per tonne a week earlier.

In the secondary market, rebar was offered and traded around 3,500 zloty per tonne CPT during the week and even below that level in some cases.

Import rebar offers were scarce in the Polish market.

Notably, the latest offers from Moldova to Poland were reported at €750 ($777) per tonne CPT earlier this month, but the price idea among buyers was no higher than €714 per tonne CPT, given the downtrend in the domestic market.

Italian suppliers were out of the market. The most recent offers were heard at €750 per tonne CPT in early November.

Published by: Julia Bolotova

Supply of semiconductors could begin to ease in the final quarter of 2022 allowing production volumes to slowly recover, says the European Automobile Manufacturers’ Association (ACEA). This comes after the EU raised passenger car output 5.8% on-year in January-September to 7.97 million vehicles despite continued constrained semiconductor supply.

This was still however well below pre-Covid output of 10.74m units in January-September 2019, Kallanish notes.

Russian and Ukrainian output plummeted 66% and 85% respectively in the nine months through September 2022.

US nine-month output was up 12% to 5.29m units, driven by robust demand for new vehicles. Chinese output rose 15% to 16.36m vehicles thanks to incentives designed to stimulate private auto consumption. Japanese output fell 2% 4.83m units as the impact of the Covid Omicron variant significantly disrupted manufacturing activities, further aggravating ongoing semiconductor shortages, ACEA says.

Globally, nine-month passenger car output grew 9% to 49.8m units.

New passenger car registrations however dropped 3%, despite an 8% growth in China, with EU and US numbers down 10% and 14% respectively.

As for commercial vehicle output, this is expected to rise 10.5% on-year in full-year 2022 to 4.6m units in North America. However, in China and the EU it will be down by 29% and 1.2% respectively to 3.9m units and 3.1m units.

Adam Smith Poland

Schmidt + Clemens (S+C), a German-based maker of pipe systems for the petrochemical industry, is further digitising its raw material procurement processes with supply chain technology from Metalshub.

S+C operates locations and facilities on three continents, including three sales companies in the USA, India, and Brazil, as well as 30 further commercial agencies.  It therefore faces major challenges with managing and synchronising the procurement of the various locations, Kallanish hears from Metalshub.

The software provider’s automated database speeds up processes by making all essential data needed available with a few clicks. The documentation and storage of the data are audit-proof in order to accelerate procurement processes and reduce manual tasks, it says.

For S+C, Metalshub’s supply chain solution offers cross-location purchasing at group level. This, in turn, increases transparency and efficiency through enhanced visibility into raw material sourcing, Metalshub says. It notes that S+C will have access to a global network of verified suppliers with related information and documents from one system, ultimately increasing the resilience of their supply chain.

Metalshub was founded in 2016 in Düsseldorf and claims that more than 300 steel mills and foundries have digitised their purchasing processes using its technology.

Christian Koehl Germany