Healthy inventories, near-term price uncertainties slow down EU HRC trades
European domestic hot-rolled coil trades slowed down Jan. 29 amid healthy inventory levels along with uncertainty about sustainability of the current price trend in the near-term due to buyers’ reluctance to meet mills’ targets.
“The sentiment remains negative with the market generally well-stocked,” a trader said. “End-user demand does not seem to be enough at this point to support higher prices.”
Buyers resorted to buying smaller volumes as mills remained firm on offers due to healthy order books for the first quarter.
“So many blast furnaces are back online which will add to supplies, and that can make mills reduce prices as demand is poor,” a Northwest European service center source said. “By April-May, mills’ books will be empty again.”
Market participants estimated tradable value for domestic HRC in Northwest Europe at Eur740-780/mt ex-works Ruhr. Deals for smaller tonnages were heard concluded at Eur750-800/mt EXW Ruhr with mills also offering at those levels.
Platts assessed the price of domestic HRC in Northwest Europe at Eur760/mt EXW Ruhr Jan. 29, up by Eur10.
Interest remained mild for imported HRC due to longer lead times and geopolitical situations.
Offers were heard at below Eur700/mt CIF Antwerp for imports. However, no deals were heard concluded and the assessment moved up to the level between fresh offers and Jan. 28 assessment.
Platts assessed the price of imported HRC in Northwest Europe at Eur680/mt CIF Antwerp Jan. 29, up by Eur20.
Author Rituparna Nath, rituparna.nath@spglobal.
German steelmaking states push for safeguard import quota extension
Germany’s steel producing states urged the German government to push for a steel safeguard import quota extension until mid-2026, the states said in a roadmap for Germany’s steel industry published Jan. 29.
The safeguard quotas on steel imports into the European Union were introduced in 2018 following the move by the US to introduce tariffs on steel imports. The safeguards are due to end mid-2023, but the 11 German states that are part of the “steel alliance” argue that import restrictions would be needed to avoid an influx of imported material.
“The steel alliance is pleading to the German federal government to advocate at European level for a limited extension of the steel safeguard measures, in line with WTO-rules that allow for an eight-year duration of safeguards,” the states said in a document published Jan. 29.
The steel alliance is also asking that more iron and steel products are included in the Carbon Border Adjustment Mechanism (CBAM) to protect steelmaking in Europe. CBAM is due to start in 2026 and will put a levy on higher-emission metals imports.
The document further said that the German steel industry would need a “level-playing field” to continue steelmaking with lower carbon emissions, with more renewable energy and energy storage, and infrastructure for hydrogen.
About hydrogen the steel alliance said there should be consistent certification and standards to trade green hydrogen at international level.
Since many steel mills are moving to electric arc furnace production which has lower carbon emissions than the traditional blast furnace route but is more energy-intensive, the alliance is also asking the government to address the rising cost of energy to keep this production method viable.
German steel federation welcomed the roadmap Jan. 29 as a commitment on state level for the transformation of the steel industry, but said that more specific political solutions are needed to address the issues.
Platts, part of S&P Global Commodity Insights, assessed Northwest European hot-rolled carbon-accounted coil stable on the day at Eur875/mt ($945.60/mt) ex-works Ruhr Jan. 29.
Author Laura Varriale, laura.varriale@
Steel hollow sections prices in Europe climb on higher HRC feedstock costs
Fastmarkets’ weekly price assessment for steel sections (medium) domestic, delivered Northern Europe was €820-890 ($892-969) per tonne on Wednesday, up by €20-30 per tonne from €800-860 per tonne one week prior.
Fastmarkets’ weekly price assessment for steel sections (medium) domestic, delivered Southern Europe was €820-890 per tonne on Wednesday, up by €20-30 per tonne week on week from €800-860 per tonne.
“Demand is slightly higher, but the cost of production is also increasing, therefore all mills are offering at a higher price,” one trader in northern Europe told Fastmarkets.
Trading in southern Europe is “good for the moment,” a producer said, adding that “some countries are a little bit better off and some a little worse off [in terms of demand].”
One of the main drivers pushing up production costs has been rising hot-rolled coil feedstock prices, Fastmarkets heard.
Fastmarkets’ daily calculation of its steel HRC index domestic, exw Northern Europe was €746.67 per tonne on Wednesday, up by €11.04 per tonne from €735.63 per tonne week on week, and up by €51.17 per tonne month on month.
European mills managed to push up prices for HRC in January amid good order books and tight supply.
Published by: Holly Chant
European steel HRC prices increase despite subdued trading
The limited availability of the material was seen to be the main reason for continuing price rises.
In Northern Europe, offers were heard at €800-820 ($868-890) per tonne ex-works. But these prices were not accepted by the market.
Deals for small volumes were reported in the range of €750-760 per tonne ex-works. “Orders at these prices [would be delivered in] the second quarter of 2024, but March deliveries were still possible,” a buyer source told Fastmarkets.
Market participants estimated the tradable market level in the same range of €750-760 per tonne ex-works.
Consequently, Fastmarkets calculated its daily steel hot-rolled coil index, domestic, exw Northern Europe at €754.17 per tonne on January 29, up by €2.92 per tonne from €751.25 per tonne on January 26.
The index was also up by €7.92 per tonne week on week and by €58.67 per tonne month on month.
According to Fastmarkets’ sources, the continuing price rises were not so much demand-driven but a result of the limited availability.
“Buyers are booking only the volumes they absolutely need, and avoiding a build-up of stocks,” a second buyer source told Fastmarkets.
Meanwhile, quite a few blast furnaces were still idle in Europe, and import offers for material were not particularly attractive.
Fastmarkets calculated its daily steel hot-rolled coil index, domestic, exw Italy at €753.33 per tonne on Monday, up by €8.33 per tonne from €745.00 per tonne on Friday.
The index was also up by €17.78 per tonne week on week and by €65.00 per tonne month on month.
In Italy, offers were heard in the range of €750-770 per tonne ex-works.
Market participants estimated the tradable market level to be in the range of €745-755 per tonne ex-works.
Offers of imported material from Japan, South Korea and India to Italy were heard between €670 per tonne and €700 per tonne CFR.
“These offers are not interesting [for importers] because they are too close to the local [price] and have delivery times that are too long at 3-4 months. Furthermore, there are still sizable HRC tonnages stored in ports and waiting to be cleared in the second quarter,” the first buyer source told Fastmarkets.
A third buyer source reported import offers from Asia at €660-680 per tonne CFR.
Market participants estimated the tradable price for Indian HRC at $730-735 per tonne CFR in Southern Europe.
Offers from Turkey were heard at $690 per tonne FOB, which would net back to around $750 per tonne CFR to Italy.
Published by: Darina Kahramanova
Anti-dumping probe could hit Turkish white goods: association
Consequences arising from the ongoing anti-dumping investigation on imports of hot-rolled flat steel products from China, India, Japan, and Russia could have a substantial impact on Turkey’s white goods exports and employment, according to Turkish white goods manufacturers association Turkbesd.
The dependence of the white goods sector on cold rolled steel, derived from hot-rolled flat steel, emphasises the need for a thorough assessment of the potential consequences of the investigation, says Turkbesd board member Mehmet Yavuz.
The association also emphasises the crucial need for Turkey to establish an Emission Trading System (ETS) linked with the EU. Collected revenue should be allocated towards green transformation as well as for future exemptions from the Carbon Border Adjustment Mechanism (CBAM), Kallanish notes.
Meanwhile, export incentives must be continuously developed to support exporters in the EU and related markets, especially in competition with Far Eastern counterparts, according to Fatih Özkadı, deputy chairman of Turkbesd.
In 2023, the Turkish white goods industry was vital on account of the domestic market, offsetting export challenges. The continuity of domestic consumers’ purchasing power was therefore essential for stable growth, the association says.
Promoting the widespread use of energy-efficient products is envisioned to bring benefits to both the country and consumers, according to Turkbesd president Gökhan Sığin. “Reducing the number of credit card instalments and increasing loan interest and commission rates prevent energy efficient products from reaching more consumers. If energy efficient products dominate the market, a total of 6 TWh of energy can be saved, equivalent to the one-year production of the Keban Dam,” Sığin notes.
Turkey’s white goods domestic sales of six main products increased by 14% compared to the previous year, while exports from Turkbesd member companies declined by 10% in 2023.
The combined total sales, comprising exports and domestic sales for these six main products, reached approximately 33 million units in 2023, reflecting a 4% decrease compared to the previous year. Concurrently, the overall production volume also saw a marginal 1% decrease.
The decline in exports during the year was primarily due to the contraction in foreign markets, says Sığin. Despite this, domestic sales have played a significant role in balancing the export decline. With the crucial importance of domestic sales, amid global risks affecting exports, maintaining Turkey’s production and employment levels in the white goods sector in 2024 is achievable on account of the strong domestic market, Sığın adds.
Turkbesd comprises both local and international member companies, including importers and manufacturers such as Arçelik, BSH, Dyson, Electrolux, Haier Europe, LG, Miele, Samsung, SEB Groupe, Versuni (Philips), and Vestel.
Turkey is Europe’s largest and the world’s second-largest white goods production hub with an annual production capacity of 32.3 million units and an export capacity of 23 million units.
Turkey’s cold rolled flat steel imports increased 58.3% on-year in November 2023 to 67,805 tonnes, while Asian countries became major suppliers, achieving a cumulative share of 54%, compared to only 4% a year earlier (see Kallanish passim). Therefore, some Turkish cold rolled flat product end users have expressed concern over the impact of a potential CR flats antidumping investigation on their sourcing ability.
The significant increase in Turkey’s flat steel imports prompted domestic flat steel producers to call for an investigation into hot rolled coil imports from China, Russia, Japan, and India in October last year.
Elina Virchenko UAE
Antwerp port hurts from tensions, recession
The Port of Antwerp-Bruges has not been left unharmed by geopolitical tensions and the slowing economy, which notably reduced throughput of steel and other goods, Kallanish learns from the port operator.
Antwerp is Europe’s leading breakbulk port for steel, which figures as conventional break bulk at ports. Compared to 2022, total throughput of conventional break bulk last year was down 18.8%, totalling around 10 million tonnes. Due to a decline in European steel production and lower demand, handling of steel, which comprises the lion’s share of this category, fell by 16.9%. The port notes that exports held up slightly better than imports, with exports down 15.5% and imports down 17.9%.
The total throughput, including liquid bulk, dry bulk, containers, Ro/Ro goods and containers, was 271mt in 2023, down 5.5% from the previous year. Thanks to the added value of the merger, the market share of the container segment increased compared to the other ports in the Hamburg – Le Havre range, according to the operator.
It notes that sustainable growth remains a priority. Over the next ten years, the port envisages an investment programme worth €2.9 billion ($3.1 billion), including in new infrastructure such as a quay wall for the Europa Terminal, a new coordination centre and residual land on the Left Bank.
This year, the port will see the first bunkering of hydrogen and hydrogen carriers, such as methanol. As part of the greening of the Port of Antwerp-Bruges fleet, two pioneering vessels will be introduced: the Methatug, the world’s first methanol-powered tug, and an electric RSD, a first for Europe.
Christian Koehl Germany