ArcelorMittal Hamburg plans fourth-quarter stoppages, short-time working
ArcelorMittal Hamburg will implement short-time work for its staff in the fourth quarter, and stop production for two periods totalling five weeks.
In a letter sent to customers seen by Kallanish, the company cites weak domestic demand, especially in the construction industry, and persistently high electricity costs. The direct reduced iron plant in Hamburg faces particularly great challenges as one of the most energy-intensive steel industry locations in Germany, the firm notes.
After careful consideration and evaluation of all available options, the management says it decided on reducing production.
The first production stoppage is from 27 October to 12 November, with the second planned from 14 to 31 December. During this time, the entire plant will be closed and only operate with a minimal crew on site. The company has therefore asked customers to plan shipping of October orders ahead of time.
Christian Koehl Germany
Low consumption seen continuing in Italian longs market
Distributors and agents in Italy are lamenting a very bad September and October in terms of margins, sales and general activity. Some sources say that compared to last year, sales across flat and long products have dropped 35-40%.
On long products, one mill source forecasts consumption to remain at current levels, not only in the fourth quarter but also in Q1 2024. Talking about prices, a distributor tells Kallanish: “If they [producers] did not manage to push up coils [prices], with practically no possibility of importing, they will not manage in this quiet market to increase longs prices. We see very little activity downstream. Our clients have limited orders. From now until Christmas, sellers and buyers forecast prices to fall between €30-50/tonne depending on product.”
Merchant bar values are on a downward trajectory, losing some €30/t ($31) compared to September. Transactions are occurring at €300-320/t base ex-works. Including size extras, prices are hovering at €720-740/t.
Sections, the product that has been more stable compared to all other longs, is also weakening by €30/t on average versus September, under pressure from cheaper imported material. Its values now stand at €800-820/t on average.
However, sources are not pessimistic about the beams market and say that while apparent demand is absent, real demand continues to be reliable despite the steel sector downturn. Distributors are chasing orders and discounting heavily when possible.
Natalia Capra France
Italian plate demand dries up, prices decline
Italian plate prices are falling significantly compared to the beginning of September. Producers noted some return of demand in the last week of September and first days of October, following a long period of quiet and low sales.
At present, orders are drying up in Italy, but plate makers are selling to other European countries such as Poland and Ukraine. In the Italian domestic market, buyers are waiting for values to decline further, sources tell Kallanish.
Distributors are chasing orders. “A price war is starting where companies compete with each other by discounting material a lot,” one source says. Distribution firms are chasing margins and hoping to increase their turnover.
On average, S275 has declined to €650-670/tonne ($686-707) delivered, while S355 is being transacted at slightly below €700/t delivered. Sources forecast that some demand should return in November when Italian companies buy material for year-end delivery. A large service centre says the market is stuck and all flat and long product prices are falling.
Imported Asia-origin slab contracts in Italy are rumoured to have been done at $580/t cfr Italy, mostly stable compared to mid-September.
Natalia Capra France
Italian rebar buyers shun mill hike
Italian rebar deal prices were stable on-week and on-month amid continued low consumption. This follows a hike attempted in the last September week by local rebar makers, who pushed up prices by €50/tonne ($52), imitating other rebar producers in Europe, sources tell Kallanish.
Transaction values however remain at €280-310/t base ex-works. The high point of the range has increased by €10/t compared to last month, but €310/t is only being achieved for very low quantities. Including extras, domestic rebar is flat at €540-570/t base ex-works.
While producers are asking for €340-350/t base ex-works, agents and distributors are sceptical about any increase while consumption remains so low. Buyers continue to ask for 150-300 tonnes per week, with very few higher-volume contracts. Domestic mesh is meanwhile being sold at about €380-400/t, also unchanged. Buyers must add transport and around €300/t size extras.
One buyer says many infrastructure projects that should be funded by the national recovery fund (PNRR) will not be implemented due to the slow bureaucracy of the government. This means the funds will not be spent by 2026, a key requirement of the European Commission for the allocation of funds.
Natalia Capra France
EUROMETAL at 7th Steel Plate Conference Europe
EUROMETAL had the privilege of collaborating once again with Metal Expert at its 7th Steel Plate Conference Europe.
This unmissable event brought together the main European producers and distributors of Quarto Plates in the capital city of North Rhine-Westphalia, Düsseldorf.
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Customers, producers will pay for green steel: SSAB
“However, we have to invest in green technologies, to be pioneers, and most of our customers agree that we must lower CO2 emissions,” he noted at the EUROMETAL regional meeting Nordics in Copenhagen last week attended by Kallanish.
“We have calculated that we will have to pay between SEK 7-8 billion [$636-727 million] by 2030 for gas emissions, if we continue to produce with the old technology. So, one way or the other, you will have to pay more for your steel, Thus, the producers, together with the customers, have to face this new reality,” he added.
According to him, the mechanical properties of steel are created in the downstream processes and will be the same as they are today. “The only difference is using fossil-free fuels, like hydrogen and electricity. We calculated that at SSAB, fossil–free iron and steel production will require 15 TWh of electricity per year. That corresponds to 9% of Sweden’s electricity generation in 2019,” Meier noted.
The firm’s plan is to reach commercial output of 1.3 million tonnes/year of fossil-free hot-briquetted iron in 2026 after delivering the first green steel to Volvo in 2021, he concluded.
Svetoslav Abrossimov Bulgaria
Changing society, geopolitics redefine European steel
“China produces 50% of global steel production and develops itself with self confidence and ambitions,” he noted at the Eurometal regional meeting Nordics in Copenhagen last week attended by Kallanish. “When something is happening in China, it has an immediate effect on Europe in accordance with steel shipments and raw material prices.”
Europe is leading in climate change action, but it is moving to a post-industrial and aging society, which is using less steel, he added.
According to him, European countries must redefine and value their strength, which also concerns supply chains and how to adopt to global changes. “Europe is now facing the war in Ukraine, high inflation and energy costs. However, it must continue to invest in the green transition. The automotive sector is already testing the fossil-free steel options and also the construction market, because this is the future,” Aardenburg concluded.
“The industry and, in particular, our customers are ready to buy green steel,” said SSAB managing director Jan Meier. “In every industry you will find bold pioneers who will want to take the lead and others that will follow them, despite the cost of the green transition.”
“The European automotive and construction sector are relying more and more on fossil-free production,” noted Lemvigh-Muller sales director Anders Voldsgaard Clausen. “It will grow step by step in different countries and industries.”
According to Norsk Stal chief executive Helge Runer, green steel market trading is currently at a nascent stage and the expensive prices are in the spotlight, but this will change. “Mills are already investing billions in new technology for decarbonisation, but it will by the end users who will drive up this new trend,” he opined.
Svetoslav Abrossimov Bulgaria
EUROMETAL at Catalonia steel distribution forum 2023
Fernando Espada, president of EUROMETAL, and Roberto González, chairman of EUROMETAL Coordination Work Group of National Federations, participated in the XIX Forum de la distribució de productes siderúrgics, organized by the Unió de Magatzemistes de Ferros de Catalunya i Balears on October 4, 2023.
This initiative was born in 2005 with the aim of creating an open dialogue and enrichment space for the metallurgical sector.
The president of EUROMETAL participated on the panel “Presentació” accompanied by Roberto González (UAHE), Manuel Fernandes Nobre (Açomefer) and Josep Arimany Palau (Unió de Magatzemistes de Ferros de Catalunya i Balears).
EUROMETAL also contributed in this online forum as a collaborator.
