Dillinger, Sif team up to make monopiles fully circular low carbon
German steel producer Dillinger has signed an addendum to an existing deal with design engineering company Sif to supply its lower-emission heavy-plate steel for offshore wind foundations, the companies said May 16.
By signing the “green steel” addendum to the plate supply framework agreement, Dillinger and Sif said they have detailed the transition to supplying low carbon steel plates for Sif’s new and enhanced XXXL monopile factory, with the deal aiming to achieve full circularity of the monopiles.
“This agreement is key to decarbonizing materials such as steel. With this addendum and the MoU between Sif Decom and Dillinger, the partners support development of lower-emission steel manufacturing and circularity of materials used in offshore wind foundations,” Sif CEO Fred van Beers said.
“We are very proud of this future-focused collaboration with Sif,” Dillinger chair Stefan Rauber said. “Our steel plates from Dillinger, which in future will be produced with reduced CO2 emissions, are the basis for monopiles and wind farms where renewable energies are generated.”
Starting in 2027/2028, SHS and its subsidiaries Dillinger, Saarstahl and ROGESA plan to produce up to 3.5 million mt/year CO2-reduced steel under the PURE STEEL+ brand. By 2045, the entire production volume of the company’s crude steel is set to be carbon-neutral.
Many companies in different industries across the steel value chain are buying increasing volumes of low-carbon “green” steel to reduce their scope 2 and 3 emissions, closing offtake supply agreements to secure low-carbon raw materials.
Platts, part of S&P Global Commodity Insights, launched its carbon-accounted price assessments in May 2023, following the market trend of strengthening lower-carbon steel demand.
Platts assessed Northwest European hot-rolled carbon-accounted coil stable on the day at Eur765/mt ($832/mt) ex-works Ruhr on May 15.
The assessment was calculated in line with the sum of Platts daily carbon-accounted steel premium (CASP) assessment and Platts daily hot-rolled coil price assessment in Northwest Europe.
Annalisa Villa
UK HRC market sentiment bearish on low demand
Domestic prices for hot-rolled coil in the UK fell in the week ended May 16 as trading activity remained low and distributors started to offload ex-stock material at competitive prices.
Atlantic Steel Processing, a flat steel service center and stockholder, went into administration on May 14, according to official government data. Market sources said that this will result in significant tonnages going around and prices are expected to be lower in the coming weeks.
“Atlantic steel went into administration, so the cargo has to go somewhere,” a trader source said. “Spot prices are expected to be lower because of this for the next 2-3 weeks.”
Atlantic Steel typically has up to 10,000 mt of flat steel in the warehouse, and further 10,000 mt in ports, according to the company’s website.
Steelmakers have been struggling to fill order books as buyers were holding back from bookings. Sources also said that no significant improvement in demand is expected until next year.
“The market is still very quiet,” a service center source said. “EU mills are hungry for orders.”
Additionally, the bearish mood in the market was supported by competitive stocks of local distributors offering European hot-rolled coil at GBP580-600/mt ex-stock West Midlands.
For new EU-origin material, offers and tradable values were reported at GBP610-620/mt DDP West Midlands.
For material originating from Vietnam, offers were reported at GBP590-600/mt DDP West Midlands, while tradable values were reported at GBP580-585/mt DDP West Midlands.
For material originating from Turkey, offers and tradable values were reported at GBP590-610/mt DDP West Midlands.
Platts assessed UK HRC down GBP5/mt on the day at GBP605/mt basis DDP West Midlands May 16.
For the “other countries” UK HRC category, mainly including material from Asia, 89% of the total quota — which is 22,589 mt — has already been used, according to official UK government data.
Platts is part of S&P Global Commodity Insights.