Day: 20 February 2023

Wie bekomme ich zuverlässige Informationen darüber, wie sich der CO2-Footprint eines Stahlerzeugnisses zusammensetzt? Und wie zuverlässig können diese Informationen in den Lieferketten weitergegeben werden?

Das sind Fragen, die viele Stahlverarbeiter derzeit umtreibt. Auf der Euroblech 2022 hat Stahlo mit seinem PCF-Demonstrator „Stahlo Steel Gate“ einen ersten Impuls für mehr Transparenz in Stahllieferketten gesetzt.

Der Stahlmarkt ist unübersichtlich, einheitliche Standards, was “grüner” Stahl ist und wie die Emissionen, die bei der Produktion entstanden sind, gezählt werden, gibt es derzeit noch
nicht. „Unsere Kunden in der Automobil- und Zulieferindustrie, aber auch in anderen Branchen interessiert mehr und mehr, wieviel CO2 tatsächlich in dem Stahl steckt, den sie bei uns bestellen. Dazu geben wir bereits mit unserem Klassifizierungslabel Auskunft. Mit der neuen Blockchain-Anwendung „Stahlo Steel Gate“ setzen wir einen weiteren Impuls. Damit können wir dem Material nun entlang der Lieferkette auch Emissionen eindeutig zuweisen, die nicht verändert werden können”, so Oliver Sonst, Geschäftsführer von Stahlo.

Um maximale Transparenz zu erreichen, muss am Ende der Fußabdruck eines Stahlerzeugnisses vollständig vorhanden sein. „Denn erst wenn die gesamte Lieferkette lückenlos erfasst ist, also der PCF (Product-Carbon-Footprint) “cradle-to-gate” – vom Rohstoff bis zum Wareneingang des Kunden –, weiß der Kunde über die bisher entstandenen Emissionen vollständig Bescheid“, sagt Oliver Sonst. Ziel ist somit die Rückverfolgbarkeit und Authentizität von z. B. grünem Stahl innerhalb der gesamten Stahl-Lieferkette vom Stahlwerk bis zum Endprodukt.

Ob für Rohstoffe, Herstellung, Veredelung oder Transporte – dem Stahlprodukt muss ein konkreter Emissionswert unveränderbar zugeordnet sein. Bei jedem Schritt wird ein Datensatz mit Informationen über die jeweils entstandenen Emissionen angereichert und automatisch mit dem Produkt weitergegeben. Dabei müssten im nächsten Schritt – so der Stahlexperte – Standards für die digitale Hinterlegung von Protokollen und diversen Zertifizierungen geschaffen werden. Diese Daten werden dann idealer Weise nicht lokal von Einzelnen gespeichert, sondern liegen dezentral und fälschungssicher bei einer Vielzahl von Teilnehmern, der sogenannten Community.

„Genau diese Idee haben wir bereits auf der Euroblech im Oktober 2022 als “Steel Gate”-Ökosystem demonstriert. Es war ein Zukunfts-Impuls für die Branche“, so der Geschäftsführer von Stahlo.

Bildtext 3 und 4: Darstellung der Lieferkette bis zur Lieferung an unseren Kunden.

von Hubert Hunscheidt

Swiss Steel has signed a definitive agreement for the sale of several distribution subsidiaries to Jacquet Metals, a distributor of specialty metals, Kallanish learns from the SBQ steel maker.

The transaction encompasses entities in Czech Republic, Poland, Slovakia, Hungary, Lithuania, Estonia and Latvia. Together, these generated a total net revenue of €158 million ($168m) and Ebitda of €12m in 2022, with 267 employees, by selling mostly non-Swiss Steel products. The divestment is an important step for Swiss Steel on its strategic path focusing on a global distribution network that promotes and sells own mill products, the steelmaker notes.

It is the second significant agreement between Swiss Steel and Jacques Metals, following the sale of distribution entities in Germany, Austria, Belgium and the Netherlands in 2015. With this transaction, the two expand their already existing business relationship and will continue to cooperate as reliable partners, they say.

Completion of the transaction is subject to customary closing conditions including approval from the relevant anti-trust authorities.

Christian Koehl Germany

The European Commission has approved a €55 million ($59m) German measure to support ArcelorMittal Hamburg in building a demonstration plant for the production of zero-emission iron using 100% renewable hydrogen.

The main objective of the project is to apply technology aimed at reducing greenhouse gas emissions in ArcelorMittal’s green steel production processes. The plant will have an annual capacity of 100,000 tonnes of direct reduced iron.

The new plant will provide ArcelorMittal with valuable insights into the production of high-quality emissions-free steel. The group will use the experience gained at the demonstration plant to decarbonise its steel production in the EU on a larger scale. Moreover, ArcelorMittal has committed to share its technical know-how with other European steel producers, Kallanish learns from the Commission’s statement.

The demonstration plant is envisioned to start operating in 2026. Once completed, the project is expected to prevent the release of over 700,000 tonnes/year of carbon dioxide. The measure will contribute to the achievement of the EU Hydrogen Strategy and the European Green Deal targets. It will also help to reduce dependence on Russian fossil fuels and fast forward the green transition, in line with the REPowerEU Plan, the Commission notes.

Christian Koehl Germany

GFG Alliance has acquired insolvent UK engineering steel distributor Aartee Bright Bar (ABB) via the purchase of 100% shares in Aartee Group Pte Limited.

This follows Aartee going into administration earlier this month.

GFG has provided funding to cover wages for four weeks to prevent a reduction in jobs expected under the administration. The group says it has filed an application to challenge the administration, and will seek to restart operations in a bid to save 250 viable steel jobs in the West Midlands, Rugby, Bolton, Southampton and Newport.

“ABB is a significant part of the UK’s steel supply chain and distribution network, and a key customer for GFG’s bar products produced in Rotherham by LIBERTY,” GFG chief transformation officer Jeffrey Kabel says in a note sent to Kallanish. “Our rescue plan would save 250 viable steel jobs in the West Midlands and across the UK. Over time, ABB’s business would be integrated into LIBERTY’s operations helping to reinforce our UK transformation plan focused on producing specialist steel products.”

Singapore-headquartered Aartee Group’s other subsidiaries are Ferretti International Australia and Aartee Distribuzione Italia.

GFG subsidiary Liberty Steel UK (LSUK) said last month it will reduce primary production at Rotherham and replace this with imported billet and slab amid high energy costs and imports (see Kallanish passim). The focus will be on high-value alloy steel production at Speciality Steel UK (SSUK). Liberty Steel Newport and Liberty Performance Steel West Bromwich processing lines will be idled. The move may potentially impact up to 440 roles across the business.

Kabel however said the firm will not be giving up on commodity products.

Adam Smith Poland

Demand fundamentals were uncertain in the European hot-rolled coil market Feb. 17, with buyers unwilling to commit volumes to rising prices unless necessary.

A distributor clarified that perceptions of strong demand were likely due to necessary restocking from those stockholders that resisted purchasing toward the end of last year, now in need of material.

“I think any demand is mainly coming from distributors, not end-consumers,” said a service-center source. “Buyers who avoided bookings in Q4 now need to restock, but the outlook remains uncertain due to unwillingness to meet current offer levels.”

A mill source agreed the sentiment, saying “there is no activity in the market. Demand from end-users is uncertain, January and February performed well but now the situation is unclear.”

The construction industry was said to be “slow,” though mixed expectations were heard for automotive. One distributor said larger automotive buyers had failed to take reserved volumes, and was pessimistic on automotive demand, while another distributor characterized the sector as “doing better.”

More generally, buyers were heard as needing to substitute Turkish material ordered for February-March delivery, now unavailable due to the recent earthquakes.

“The earthquakes in Turkey have put some buyers in a very stressful situation,” said the service-center source. “Those who expected volumes will need to replace them in Europe, paying higher prices.”

Offers in the market for May delivery were reported at Eur820/mt ex-works Ruhr, with tradable value recorded on a range of Eur780-810/mt ex-works Ruhr and Northern Europe across distributor and mill sources.

A deal was reported from a service-center source at Eur800/mt ex-works Northern Europe, including Eur25/mt carbon surcharge, for tonnage in quadruple digits.

Platts assessed hot-rolled coil in Northwest Europe stable on the day at Eur785/mt ex-works Ruhr.

Platts is part of S&P Global Commodity Insights.

— Benjamin Steven, Maria Tanatar

The European Commission has approved Eur515 million ($549 million) as a part of the EU hydrogen strategy to help ArcelorMittal decarbonize its steel production in Spain and Germany and reduce the region’s dependence on Russian fossil fuels, it said Feb. 17.

Of the total grant, Eur460 million will help ArcelorMittal to partially decarbonize its steel production in Gijón, northwest of Spain, where the company currently operates two blast furnaces.

The Gijon steelworks’ transformation will see the construction of a renewable hydrogen-based direct reduced iron (DRI) plant, which together with a new electric arc furnace (EAF) would substitute old blast furnaces. Natural gas, initially used in the DRI unit, will be gradually replaced with renewable hydrogen and syngas generated from waste and metallurgical gases.

The new facilities, which are likely to start coming online in late 2025, will produce 2.3 million mt/year of low-carbon DRI, thereby avoiding the release of 70.9 million mt of CO2.

In Hamburg, northern Germany, meanwhile, the remaining Eur55 million grant will contribute toward the construction of a demonstration plant for the production of 100,000 mt/year DRI using renewable hydrogen.

Once operational from 2026, ArcelorMittal Hamburg is expected to avoid the release of over 700,000 mt/year of CO2.

Net-zero goals questioned

Although these projects will provide ArcelorMittal with insights into the production of emissions-free steel and help in the decarbonization of its EU-based steel operations on a larger scale, the company’s path to net zero still falls under scrutiny as it plans for new blast furnaces at other locations, against its low-carbon steelmaking strategy for Europe and North America, according to a Feb. 16 report by the Institute for Energy Economics and Financial Analysis.

“ArcelorMittal, the world’s second-largest steelmaker, appears to be planning a two-speed decarbonization, with hydrogen-ready, direct reduced iron technology to be installed overwhelmingly in developed nations while building more coal-powered blast furnaces in the developing Global South,” the Institute’s analysts Simon Nicholas and Soroush Basirat pointed in the report.

In October 2022, ArcelorMittal broke ground on its $1.3 billion transition to DRI-based steelmaking in Ontario, Canada, and has similar plans in Spain, France, Belgium and Germany. At the same time, through its joint venture with Nippon Steel, ArcelorMittal will bring two blast furnaces online in 2025-2026 in India’s western coastal Gujarat state. With a very different technology and emissions approach adopted for India, there is doubt on ArcelorMittal’s ability to reach net zero by 2050, analysts added.

The blast furnaces, which are under construction at Hazira in Gujrat, with a total capacity of 6 million mt/year of steel output will lead to a rise in CO2-equivalent emissions by 2 mt tons per ton of steel produced, or by 12 million mt/year if they run at full capacity, EEFA estimates.

New integrated steel plants that are also planned at Kendrapara and Paradip in the eastern state of Odisha, India, would add more emissions, the EEFA report said.

ArcelorMittal is keen to expand in India because the country is a major steel growth market with a planned doubling in capacity this decade alone, However, efforts to bring the global steel sector toward net zero will not be achieved if India relies on new coal-based steelmaking to meet its high forecast demand growth while Europe is accelerating its shift away from reliance on coal-based smelters, EEFA report said.

When asked to comment on the EEFA report, a spokesperson for ArcelorMittal said that ArcelorMittal/Nippon Steel India is adding new steelmaking capacity to support the economic growth of the country. However, the companies are aware of the need to start a journey to net zero in that part of the world.

Plans for India

The ArcelorMittal-Nippon Steel joint venture in India has developed a plan to reduce its emissions intensity and is currently working on a 2030 target which it is yet to announce, the spokesperson said.

The spokesperson insisted that the blast furnace was seen as the best technology for that expansion, but the potential to add on a carbon capture and storage solution to the furnaces in the future will partially offset their carbon footprint.

The enterprise will also consider using hydrogen in the blast furnaces, which will then result in a further decrease in emissions, the spokesperson said, adding that ArcelorMittal/Nippon Steel India also has DRI-based capacity, which it can convert to green hydrogen when it becomes economically available. “5 million mt out of 14 million mt will have the potential of working on a very high H2 percentage,” the spokesperson added.

Other ArcelorMittal/Nippon Steel India’s decarbonization efforts include the announced $600 million investment in a 975 MW renewable energy project, which will supply 20% of the electricity the Indian joint venture operations consume.

“We have been very clear about the fact that the journey to net zero for the steel industry will require more than one technology route — one utilizing green hydrogen and the other carbon capture utilization and storage, and a third [being in development is] direct electrolysis,” said the spokesperson. “The International Energy Agency, for example, forecasts that over 50% of steelmaking will be capture utilization and storage-based by 2050,” he said.

ArcelorMittal reiterated it was committed to achieving its net zero targets by 2050 and reducing emissions intensity by 25% across its global operations by 2030.

— Ekaterina Bouckley

The European Commission has terminated an expiry review of anti-dumping measures in force on imports of hot rolled steel products imported from Ukraine, it said Feb. 16.

The expiry investigation was initiated Oct. 5, 2022 and formed part of a wider review of EU anti-dumping measures on certain flat-rolled iron, non-alloy steel or other alloy steel products imported from Brazil, Iran, Russia and Ukraine

The request for the review was submitted on July 4, 2022 by the European Steel Association EUROFER, which expressed concern that the expiry of the existing anti-dumping measures would lead to the dumping of steel products in the European marketplace and injury to the EU steel industry.

According to a regulation published in the Official Journal of the European Union Feb. 16, Eurofer withdrew its request for an expiry review investigation of Ukrainian-sourced product Nov. 23, 2022 due to developments in Ukraine that included the destruction of steel mills and energy infrastructure.

“Given the developments that have taken place since the request was lodged and, especially, since the expiry review was subsequently initiated, circumstances with regard to Ukraine have changed to such an extent that it is no longer appropriate to pursue an expiry review against HRF imports from Ukraine,” it said.

According to the European Commission, Eurofer also stated that steel production in Ukraine is unlikely to return to normal in the short-to-medium term and it is therefore unlikely that Ukrainian hot rolled flat steel products would contribute to a recurrence of injury to the European steel industry any time soon.

The Commission said that it will continue with the expiry review with respect to imports originating in Brazil, Iran and Russia.

Following a year-long antidumping investigation, the European Commission imposed a definitive antidumping duty on imports of hot-rolled flat steel production from Brazil, Iran, Russia and Ukraine Oct. 17, 2017.

The rate of duty applied to imports from Ukraine was Eur60.5/mt ($70.97/mt) while the rate applied to Iran was Eur57.5/mt.

Russia and Brazil were subject to respective rate ranges of Eur17.6/mt to Eur96.5/mt and Eur53.4 to Eur63.0/mt, depending on the company involved.

Platts, part of S&P Global Commodity Insights, assessed Northwest Europe hot-rolled coil at Eur822.6/mt ($875.4/mt) ex-works Ruhr Feb. 16, up Eur1.5/mt on the day.

— Euan Sadden

Domestic prices for heavy plate increased in Europe in the week to Feb. 17, supported by healthy demand and rising slab offers.

In addition, availability of heavy plate from European producers had been limited due to good order books in Italy and Germany, stronger focus of German mills on projects and long-term agreements over spot market as well as reduced production in Central Europe.

Platts assessed domestic prices for heavy plate in Northwest Europe at Eur1,025/mt ex-works Ruhr on Feb. 17, up by Eur25/mt week on week.

A German steelmaker that has been more involved in the spot market has been offering the material at Eur1,000-1,050/mt ex-works Ruhr.

Another mill traditionally focused on long-term and project supply has been offering plate at Eur1,080-1,120/mt ex-works Ruhr.

Market participants estimated tradable values at Eur990-1,100/mt ex-works Ruhr.

Demand for heavy plate has been good and buyers have been accepting higher prices, sources said.

“Demand for plate is fine, we see buyers, including bigger stockholders accepting price rises,” a steelmaker said. “Deals were settled at Eur910-920/mt ex-works Italy and some rerollers are already offering at Eur940-950/mt ex-works Italy.”

Other market participants have confirmed the target prices of Eur940-950/mt ex-works and transactions at Eur910-920/mt ex-works.

In South Europe, Platts assessed domestic prices for heavy plate at Eur920/mt ex-works Italy on Feb. 17, up by Eur20/mt on week.

Rising slab offers have also contributed to the bullish sentiment in the European plate market.

“With current slab costs, plate prices above Eur900/mt ex-works is a necessity to cover costs and secure some margin,” an Italian reroller said.

While in the beginning of the week few deals for the semi-finished products had been settled at $710-$720/mt CIF Italy, by the end of the week such prices were no longer attainable. A limited number of suppliers have been offering slab at $750/mt CIF Italy and the exporters have been reluctant to negotiate discounts, sources said.

Platts assessed prices for imported slab in South Europe at $750/mt CIF Italy on Feb. 17, up by $25/mt on week.

Platts is part of S&P Global Commodity Insights.

— Maria Tanatar, Benjamin Steven

Demand for steel rebar in Poland remained very poor in the week to Friday February 17, but mills refuse to cut their prices further, citing high costs, Fastmarkets heard.
There was virtually no activity in the Polish rebar market during the past week, according to sources.

In fact, some cut-and-bend companies have reportedly closed their rebar shops due to low prices and high costs, several sources told Fastmarkets.

“Prices for cut-and-bend [rebar] are very low; cut-and-bend shops are all loss-making now,” a trader said.

“Nobody is buying more than [enough to fill] one truck,” a second trader said.

Offers from local mills of 12mm rebar were heard at 3,300-3,350 zloty ($739-750) per tonne CPT, which would be equivalent to 3,250-3,300 zloty per tonne EXW. This was down from 3,350-3,400 zloty per tonne CPT seven days ago.

Mills were reluctant to reduce their rebar prices further, claiming that current offers are already at the cost line for them.

Fastmarkets’ weekly price assessment for steel reinforcing bar (rebar), domestic, exw Poland was 3,250-3,300 zloty per tonne on Friday, widening downward by 50 zloty per tonne from 3,300 zloty per tonne on February 10.

In the secondary market, rebar was offered and traded at prices around 3,400 zloty per tonne CPT, largely stable from the previous week.

Some sources said that several stalled construction projects were expected to restart before the end of the first quarter and that this would support rebar prices.

Additionally, sources expected a recovery in demand for scrap and rebar in Turkey to support the rebar market in Poland in the long run.

Italian producers were offering rebar for March delivery to Poland at €700 ($748) per tonne CPT, but only very limited volumes.

Published by: Julia Bolotova

Director of Market Analysis and Economic Studies at EUROFER – about the factors affecting apparent steel consumption and steel-using sectors in the European Union

In the third quarter of 2022, apparent steel consumption in the EU reached its lowest level since the post-pandemic peak period. According to EUROFER’s latest report, it dropped by 11.2%, recording a volume of 32.2 million tonnes. Further decreases are also expected in the fourth quarter of last year and at least until the first half of this year.

As a result, apparent steel consumption in the EU is projected to decline to 144 million tonnes (-4.6%) in 2022 and 141 million tonnes (-1.6%) in 2023. A modest recovery is forecast for 2024, when apparent steel consumption may increase by 1.6% to 143 million tonnes. However, there is still a high degree of uncertainty for the future situation.

Alessandro Sciamarelli, Director of Market Analysis and Economic Studies at EUROFER, told GMK Center about the factors affecting apparent steel consumption and steel-using sectors in the European Union.

Steel-using sectors marked the seventh year-on-year quarterly growth in Q3’22. Why have they displayed resilience?

– The main reason for steel-using sectors’ resilience is the construction sector performance: in Q3 2022, it continued to be quite positive together with other, albeit relatively less important, steel-using sectors. It is important to remind that construction accounts for 35% of apparent steel consumption in the EU.

In the previous quarters, construction was heavily boosted by public support and other generous national schemes supporting both public construction spending and housing renovation as well as eco-efficiency, such as in Italy. However, these effects are now slightly fading away.

The automotive sector also had a strong rebound in output in Q3 2022 (+20.7% year-on-year), but almost entirely due to the comparison with the very low levels seen one year earlier and throughout 2021. Therefore, automotive output remains around low levels in historical terms.

According to EUROFER, the war in Ukraine has had a limited impact on output in these sectors so far. But a worsening of the situation is expected for Q4’22. What is the reason for it?

– Russia’s war in Ukraine started one year ago, but its effects were not immediately visible: in Q1 2022 the industrial cycle in the EU was still in an upswing as a carry-over of the positive trend seen in 2021. It is only starting from Q3 2022 that the war’s impact on EU industrial output became visible, notably due to an unprecedented rise in energy prices – gas prices in particular –, which peaked in July/August 2022. The protracted impact of the war in Ukraine and continued high energy prices (albeit much lower than the unprecedented spike seen over the summer) have started to spread their effects from Q3 2022, and are expected to persist to a larger extent in Q4 2022 and Q1 2023.

Real steel consumption in the EU should grow by 1.3% in 2022. Earlier you predicted an increase of 0.7%. What motivated you to improve the forecast?

– This data may be interpreted as a consequence of a more upbeat perspective, but the opposite is true. The 2022 real steel consumption increase is the result of a more pronounced-than-expected de-stocking throughout the year, due to a worsened demand outlook. Stocks have been depleted because they anticipated a pessimistic outlook in demand. Subsequently, those former stocks were passed on to real consumption, which inevitably increased. This dynamic is also confirmed by the SWIP index, which shows a stronger-than-expected steel-using sectors’ output for 2022 (+2.1%).

EUROFER expects that the real steel consumption in the EU will drop by 5.4% in Q2’23. Why should it decrease?

– We see here the consequences of the same dynamic. As long as the demand outlook does not improve, the destocking process will not end nor is restocking expected to kick off again. The second quarter of this year is set to be the through of the cycle, before we can start to see an improvement in the general industrial outlook and, hence, in steel demand. This situation should be reflected in the SWIP index for 2023, for which we forecast a recession (-0.6%) at this stage.

Why do you expect the real steel consumption in the EU to increase in Q4’23 and 2024?

– In line with the expectations outlined before, some modest re-stocking is expected from Q4 23 onwards, as demand outlook should gradually improve. Real steel consumption should start to grow again once demand takes up. However, it is important to stress that we still face significant uncertainty in the current context.

EUROFER reduced the EU’s forecast for apparent steel consumption to 144 million tonnes in 2022. Why have you downgraded the forecast?

– The impact of Russia’s continued war in Ukraine coupled with high production costs on steel demand in the year 2022, particularly in Q3 and Q4 2022, is expected to be bigger than previously expected.

Why will the apparent steel consumption begin to increase in Q3’23?

– A general improvement of the industrial outlook is expected from Q2 2023, which will be reflected in steel demand from steel-using sectors. However, there is still a lot of uncertainty, and those developments are conditional on the evolution of the current geopolitical and economic context.

Why did imports of finished products in the EU drop by 5% in the 11 months of 2022?

– The evolution in EU imports in Q3 2022 reflected deteriorated demand. This is the first time we had a drop in imports since Q1 2021, whereas apparent consumption decreased for the second consecutive quarter. Moreover, growth in imports has systematically been outpacing growth in apparent consumption since Q1 2021. Therefore, in the last two years imports have increased at a much higher rate than demand. As a result, import penetration rate (i.e. the ratio of import out of demand) has continued to increase in recent quarters, reaching 26%.

What level of imports do you forecast in 2023-2024? What will supplies depend on and who will be among the main suppliers?

– EUROFER does not release any forecast on imports nor exports. However, Turkey, India, China, Taiwan and South Korea are likely to remain the five top exporters of finished steel products to the EU. As a consequence of Russia’s war in Ukraine, Taiwan and South Korea are now gradually replacing imports from Russia and Ukraine.

Exports of finished products also decreased in the 11 months of last year. What caused the fall?

– The main reason for a fall in EU exports was weaker external demand, a trend in line also with EU domestic demand. In particular, we have seen a slowdown in steel demand in the course of 2022 in some of the main EU export destinations, notably the United Kingdom and China.

What will happen to exports in 2023-2024? What will be the geography of supplies?

– We expect that in 2023 steel demand will grow more robustly in the U.S., thanks to public policies such as the IRA. The United Kingdom, Turkey, the U.S., Switzerland and China are likely to remain the key export destinations for the EU.

Yevheniia Hubina