EU imports largest China-origin steel tonnage since 2016
China-origin HS chapter 72 iron and steel imports into the EU increased 8% on-year in 2023 to 3.77 million tonnes, the highest tonnage since 2016, according to Eurostat data.
Intake of slab from China surged 70% last year to 624,051 tonnes (see separate story). Imports from China of HS code 7214 bar jumped 84% to 450,227t, of which rebar comprised 131,225t. Intake of carbon steel wire rose 26% to 187,924t, whereas imports of alloy steel wire surged 96% to 145,022t, Kallanish notes.
Imports of HS code 7210 coated flat steel remained the largest category, but at 1.01mt they were down 1% versus 2022. Tinplate accounted for 527,913t, while hot-dip galvanized coil intake was 436,019t.
Intake of HS code 7225 other alloy flat steel, including some electrical steel, was down 20% to 296,178t, while imports of HS code 7228 other alloy bars and rods were flat at 535,192t.
The main EU shipment destination for Chinese steel in 2023 was Italy, which increased intake versus 2022 to 1.69mt. Belgium came next despite intake declining 14% to 651,619t, while Spain was third with 296,518t, up 4%. Notably, Poland increased intake of Chinese steel by 88% last year to 237,350t.
Adam Smith Poland
HRC prices inch lower in Europe; rock bottom not yet reached: sources
Trading has been sluggish across Europe for the past few weeks, with buyers abstaining from restocking in a declining market, Fastmarkets understands.
“Buyers are waiting for [HRC] prices to drop more and therefore do not go after orders now,” a mill source said.
To secure orders, European mills have cut offers for April-May delivery HRC to around €720-750 ($781-814) per tonne ex-works, compared with the target range of €780-820 per tonne ex-works in January, market sources said.
But this cut in offers has not resulted in better buying, Fastmarkets understands.
Buyers estimated achievable levels at €700-730 per tonne ex-works on Tuesday, but “there were very few tonnages actually being traded at these prices,” a buyer source told Fastmarkets.
“Trading is very slow. I think we will see limited restocking in early April at best,” a distributor said.
Sources suggested that producers might consider reducing output to balance supply and demand, but mills have made no official announcements yet.
As a result, Fastmarkets calculated its daily steel HRC index, domestic, exw Northern Europe at €714.25 per tonne on Tuesday, down by €0.75 per tonne from €715.00 per tonne on Monday March 4.
The index was down by €4.71 per tonne week on week and by €45.75 per tonne month on month.
Meanwhile in Southern Europe, Fastmarkets’ daily steel HRC index, domestic, exw Italy was calculated at €692.97 per tonne on Monday, down by €1.03 per tonne from €694.00 per tonne on the previous day.
The index was down by €22.03 per tonne week on week and by €59.53 per tonne month on month.
HRC offers in Italy were mainly heard at €700 per tonne delivered, equivalent to about €685-690 per tonne ex-works.
“Even though we expected [HRC] prices to hold at €700 [per tonne ex-works], this line has been crossed, yet demand didn’t improve [after the price drop]. Demand is the main problem,” a distributor in Italy said.
Tradable prices for HRC in Italy were in the range of €680-700 per tonne ex-works, market sources said.
Offers were also sliding further in the import market, but European buyers were cautious with overseas bookings due to long lead times (June-July delivery) in a highly volatile market.
Import offers from Vietnam and Taiwan to Italy were heard at €610-620 per tonne CFR.
Similar offer prices were heard from India and Egypt.
Turkey-origin HRC was reported to be the most expensive, with offers at €670 per tonne CFR, including the anti-dumping duty.
Most overseas suppliers were heard offering May-shipment cargoes.
FIMIGroup Acquires FRANCI Spa
FIMIGroup, a leading manufacturer of metal processing machinery, today announced the acquisition of FRANCI Spa, a leading Italian manufacturer in the field of design and construction of moulds and equipment for the automotive sector, production of mechanical components for industrial plants and hydroelectric power stations as well as special mechanical processing.
The acquisition, costing more than 7.5 million euros, has allowed the preservation of sixty workplaces, an industrial site of more than 10.000 covered sqm fully equipped with machine tools, directly facing the SS 36 state road which connects Lecco to Milan, offering the FIMIGroup a strategic asset able to guarantee the pursuit of its industrial growth path.
Source: fimigroup.it
Green steel needs to become cost-competitive
Resolving cost-related challenges will be key to decarbonising the steel industry and advancing the adoption of green steel, according to panellists at the Kallanish Green Steel Forum held in London on Tuesday.
“The only way to successfully decarbonise steel is to make green steel [cost] competitive,” says Giacomo Mareschi Danieli, ceo of Danieli Group.
Luciana Filizzola, director of sustainability and communications at Germany-based GMH Gruppe notes that high electricity costs in Europe hinder investments in climate-neutral technologies. Calling electricity prices in Germany a near “nightmare,” she adds that the current prices in the country are nearly five times higher when compared to countries like the US and China.
Moreover, only around 40% of the electricity currently produced in Germany is renewable, she says, adding, “We need much more renewable energy—this is a very tough problem for us.”
“Unfortunately, when we look ahead, we see the prices will continue to be high because soon, the primary routes will need green hydrogen, [which] needs green electricity, so demand is huge,” Filizzola explains. “We have no answers yet on where the renewable energy is coming from. This is very worrying.”
Echoing similar sentiments, Julian Verden, managing director of Europe at Stemcor Group and EUROMETAL board member, highlights the disconnect between end-users’ interest in green steel and the high costs of hydrogen technology, hindering the fuel’s widespread adoption in the steel industry.
“In Europe, if the average cost today [for hot rolled coil] is around, say €700-800, the cost for a pure hydrogen green might be €1,000 more—that’s really unaffordable,” he notes.
“What we need to do is persuade governments to provide electricity subsidies but also to provide the investment so that more money can be brought into technologies, which, although advancing very well, is still not there yet,” Verden adds. “Unless we can resolve that problem [of cost], we are not going to get anywhere.”
At the same time, Åsa Ekdahl, head of environment and climate change at the World Steel Association, stresses that while hydrogen will play a major role in decarbonising the steel industry, it is important not to forget other technologies. For example, electrolysis of iron ore, which, although less developed, “will have potential in the future.”
“In some places, biomass could be important, such as in Brazil. But there are also, combinations of these technologies that you can use,” she adds.
Reethu Ravi UK