Tata Steel expands low-emission steel supply to automotive
Tata Steel says its Dutch unit has signed a new memorandum of understanding with German automotive group GEDIA for the supply of steel with a lower environmental footprint.
GEDIA manufactures lightweight structural body parts for many automotive manufacturers globally.
Tata Steel will initially supply GEDIA with Zeremis Carbon Lite, steel with an allocated carbon footprint reduction of up to 90%, including emissions in scope 1, 2 and 3. In future, this supply will transition towards Zeremis embodied green steel, when the IJmuiden steelworks will be able to produce it.
The companies also agreed to explore opportunities to reduce emissions associated with steel transportation.
“GEDIA joined the initiative of various car manufacturers years ago. We are committed to the Paris Climate Agreement and aim for CO2 neutrality by 2032. To achieve this, a company like ours not only needs the necessary technologies but also a promising partner by its side. We have found this in Tata Steel,” the German manufacturer says in a note seen by Kallanish.
This agreement reconfirms the increasing demand for reduced-emission steel from carmakers across Europe. Steelmakers on the continent are betting strongly on support from steel-using industries going forward for their sales of future low-emission steel.
Emanuele Norsa Italy
EU provides $400m for Italy green hydrogen hub
The European Commission will provide up to €370 million ($401.8m) in financing to support the development of a green hydrogen cluster in Italy targeting steelmaking decarbonisation, Kallanish reports.
Energy companies Edison and Saipem, alongside green investment manager Sosteneo SGR have seen their Puglia Green Hydrogen Valley project selected as part of the IPCEI Hy2Infra scheme. The funding programme announced earlier this month has awarded 33 green hydrogen infrastructure projects in seven EU countries.
The Italian project, deemed of importance and common interest, covers the construction of two electrolysers with a total capacity of 160 megawatts. The plants in Brindisi and Taranto are expected to produce 250 million cubic metres/year of green hydrogen. The clean fuel will be supplied to local industry, particularly the Apulian steelmaking hub.
End-users will have access to the green hydrogen produced at the valley through a dedicated hydrogen pipeline network to be constructed by Snam. The project, also awarded in the Hy2Infra scheme, will transport the fuel between Brindisi and Taranto. Operations are set to start in 2028.
“The IPCEI loan will represent the main driver for the development of the supply chain dedicated to the production of green hydrogen in Europe and will support Puglia Green Hydrogen Valley in the pursuit of decarbonisation projects,” says Sosteneo SGR’s partner and investment principal Europe, Federica Gallina.
Last November, Sosteno said the Puglia hub would primarily enable the use of green hydrogen in future direct reduced iron production plants in the region, including at the Taranto steel mill.
DRI D’Italia, a company owned by state investment agency Invitalia, will lead the potential application of hydrogen in the steelmaking process, in partnership with a consortium of steelmakers. They have finalised a feasibility study for setting up hydrogen-based DRI plants to replace fossil fuels and decarbonise steel production in the country. The engineering and construction of these plants is slated for the first half of 2026, enabling the start of operations in the second half of 2026, according to DRI D’Italia.
EU quota risk, high inventories drag Indian HRC
Indian domestic demand continues to remain stable this week. Traders anticipate demand to pick up after the upcoming general elections are completed. These are expected to be held in April or May.
A market source says: “The [European] market remains quiet, there’s not much activity. People just want to wait.” Multiple factors are contributing to the subdued market activity in Europe, including quota issues and high inventories, he adds.
Indian-origin HRC has around 310,660 tonnes of first-quarter EU safeguard quota left unused and a total of 3,719t awaiting allocation, according to EU TARIC data as of 26 February. The available quota totalled 330,000t last week. In-transit shipments are not included in the TARIC data (see Kallanish passim).
In the European market, initial Indian HRC offers were heard in the range of $690-700/tonne cfr, or $630-640/t fob India for SAE1006/S235 structural grades, for March shipment. This is a drop of $10/t on-week.
CRC offer prices were reported at $790/t cfr Europe, or $730-740/t fob India, also dropping $10/t on-week. No bids were heard. However, one market participant notes his offer price expectations are $50-60/t lower than current offers.
He adds: “I expect Indian offers [to the European market] to drop by a further $10-15/t in the coming weeks.”
In the Gulf Cooperation Council, an initial Indian offer for re-rolling grade (SAE1006) HRC was heard at $627-632/t cfr GCC, or $600-602/t fob India for March shipment.
Another India-UAE offer for pipemaking grade was heard at $630/t cfr Jebel Ali, or $600-603/t fob India for 8,000t for March shipment.
In Vietnam, initial Indian HRC offers were heard at $600-605/t cfr or $565-575/t fob India for March-shipment re-rolling SAE1006 grade HRC.
Last week, offers were heard in the range of $615-620/t cfr, or $580-590/t fob India. Traders opine softening Chinese prices and Vietnam’s own domestic market are mainly contributing to low buying interest from India.
In the domestic market, HRC offer prices remain unchanged at INR 54,000-54,500/t ($651.55-657.59/t) for E250 grade ex-Mumbai. Similarly, CRC offer prices were flat at INR 61,500-62,000/t ex-Mumbai for IS513 Grade O. Both prices saw no movement for the second consecutive week.
Suhita Poddar India