European HRC market experiences quiet start to the week
The price of European domestic hot-rolled coil remained largely unchanged, as the industry is now in the holiday season, with many market participants currently out.
Some market sources believe that mills are still attempting to test the market by increasing prices, but others remain skeptical, stating that consumer interest is not present enough in the market for there to be any change.
“I think European mills will definitely try to increase prices,” one trader said.
“Market is still too low and will be for the rest of the year,” a service center source said. “There is no activity in the market.”
With demand remaining low and supply remaining well ahead in Europe, some market sources have commented that mills are struggling to find orders.
“The market is flat, mills are desperate for quantities,” a distributor said. As long as consumption doesn’t pick up, there will not be any change in prices, the distributor added.
Platts assessed Northwest European HRC stable on the day at Eur625/mt ex-works Ruhr on July 15.
Meanwhile, Platts assessed domestic HRC prices in Southern Europe also stable on the day at Eur625/mt ex-works Italy on July 15.
Some indications were heard for carbon accounted steel, with an offer for premium reported at Eur95-140/mt, with a CO2 content around 0mt at scopes 1-2.
Platts assessed the carbon-accounted premium for HRC in Europe down Eur5/mt on the day at Eur120/mt July 15.
Geraint Moody
Summer trading standstill keeps European HRC prices flat
Fastmarkets calculated its daily steel HRC index domestic, exw Northern Europe at €631.25 ($688.26) per tonne on Monday, down slightly by €0.88 per tonne from €632.13 on July 12.
The index was down by €2.50 per tonne week on week and down by €3.75 per tonne month on month.
Offers of HRC in Northern Europe were reported at €640-670 per tonne ex-works or delivered, for August/September-delivery material. Some suppliers attempted to increase offers by €20 per tonne in previous weeks, but sluggish demand has been unsupportive of price rises.
Buyer sources estimated the tradeable market level in the range of €620-640 per tonne ex-works.
Trades were reported within that range on Monday, but only for small lots.
“European suppliers are in fact trying to stabilize prices, but there is just no demand and consequently no orders. The summer holidays have already started in Germany and many buyers will also be closed, so there is no interest to restock [HRC] now. Everyone will wait to see what the market will look like in September,” one buyer in the region told Fastmarkets.
There was also no clarity on the direction of prices after the summer.
Some source suggested that the changes offered to the EU steel safeguard measures, effective as of July 1, will limit cheaper imports into the EU and help European mills to achieve price increases.
At the same time, other industry sources said the effect of the new safeguard measures will likely be delayed.
“There are massive stocks of imported HRC at ports. New prices [for imports] will be higher, yes, but there is plenty of material to be sold – both of import and domestic origin. The market in Europe is oversupplied, while end-user demand is just insufficient, so price rises [for HRC] are highly unlikely,” a buyer in the Benelux area told Fastmarkets.
Meanwhile, in Southern Europe, Fastmarkets calculated its daily steel HRC index domestic, exw Italy at €625.00 per tonne on Monday, down by €1.00 per tonne from €626.00 per tonne on July 12.
The index was down by €1.25 per tonne week on week and down by €6.88 per tonne month on month.
HRC was on offer at €640-650 per tonne delivered in Italy, according to sources, which nets back to €630-640 per tonne ex-works.
A local supplier reportedly still had August-delivery coil available.
Market sources estimated the workable market level at €620-630 per tonne ex-works.
“For big tonnages it is possible to obtain discounts, but nobody is really booking lots over 500 tonnes,” one buyer in Italy said.
Offers of HRC from Turkey were available at €610 per tonne CFR to Italy, including the anti-dumping duty.
Several sources reported an offer from Indonesia at €600 per tonne CFR to Italy, for September-shipment coil.
“[The Indonesian mill] has built a new HRC line. They are testing the waters in the EU market and is sure to become more active in September-October,” a buyer in Italy said.
Published by: Julia Bolotova
Assofermet: Italian service centres report negative first half
Italian service centres’ sales volumes for the first half of 2024 were about 15% lower compared to the first half of 2023, Italian steel trade association Assofermet says in its market note monitored by Kallanish.
The negative trend can be attributed to persistently unsustainable prices and low margins. June saw an overall decline in demand, a situation that has been ongoing for an extended period of time.
Some end users are expressing interest in negotiating supply for the fourth quarter of 2024 and the first quarter of 2025. Their goal is to secure the current low level of quotes for these periods.
“Maximum attention is now being paid to the consequences of the amended version of the [EU] safeguard … This change is set to dramatically impact the flows of this raw material [hot rolled coil] … Our concern focuses … on the lack of availability of the raw material and the consequent difficulty in maintaining stocks at an adequate level to meet the demand from end users. This adds to the inevitable price increase that EU producers will charge, due to the reduced import capacity,” Assofermet warns.
Production shutdowns at EU steel mills in August will be extensive. This is likely to strongly penalise the downstream segment. Despite the ongoing crisis in consumption, service centres will have to accept significant price increases for steel in order to maintain production and fulfil orders. “This may result in a loss of competitiveness in international markets,” the note states.
The distribution segment is facing a tired market and low visibility. Volumes for flat products are reported to be stable, while those for beams, which typically experience a surge during this season, are currently on the upswing. Finished product demand is stagnant in general but steel prices have remained relatively stable over the past few weeks.
July is expected to be a challenging month in terms of demand and price levels due to the extended closures announced by several steel mills leading to a potential shortage of certain products, Assofermet concludes.
Natalia Capra France
Swedish SSAB chooses Danieli to build new Lulea mill
Swedish steelmaker SSAB has awarded Italian steel plant maker Danieli to build a new mill in Lulea, northern Sweden, the two companies said July 15.
The plant will have a capacity of 2.5 million mt/year and consist of two electric arc furnaces, a secondary metallurgy facility and a direct strip-rolling mill to produce SSAB’s specialty products, along with a cold rolling complex.
The new mill will be supplied with a mix of fossil-free sponge iron from the Hybrit demonstration plant in Gallivare and recycled scrap.
The overall selected configuration of Danieli technology will allow SSAB to produce a wide range of hot-rolled strip in coil-to-coil and semi-endless modes, resulting in a product portfolio expansion incorporating a fully electric tunnel furnace to ensure a minimum carbon footprint, the press release said.
The startup of the new mill is planned for the end of 2028, with full operating capacity one year later with environmental permits that are expected at the end of 2024.
When completed, SSAB will decommission the existing blast furnace-based production system in Lulea and this will reduce Sweden’s CO2 emissions by 7% in addition to the 3% from the other company’s mill conversion in Oxelosund.
Platts, part of S&P Global Commodity Insights, assessed Northwest European hot-rolled carbon-accounted coil stable on the day at Eur750/mt ($818/mt) ex-works Ruhr July 12.
Annalisa Villa
Carbon-neutral steel for the production of motor vehicle modules at Craemer
German company Craemer has entered into an agreement with Italian steelmaker Acciaieria Arvedi to acquire low-emission steel for Craemer’s components production.
The company plans to utilise Arvedi’s carbon-neutral certified “ARVzero” steel, which is made from high-quality scrap. This is produced in an electric arc furnace utilising sustainable energy sources, Kallanish learns from an Arvedi spokesperson.
Craemer is working towards establishing an eco-friendly supply chain. ARVzero steel is sustainable due to its production process utilising Arvedi-ESP-Technology and electric arc furnaces. This results in a significant reduction in CO2 emissions and the use of certified renewable energy.
The collaboration for the supply of sustainable steel began with the signing of a cooperation agreement in June. According to Craemer, “ARVzero steel can be used at all Craemer sites with metal-processing facilities … We can cover an important part of our demand for steel at the Herzebrock-Clarholz and Attendorn sites in Germany and at the Liptovský Mikuláš site in Slovakia.”
Arvedi is securing multiple contracts for its environmentally-friendly steel. Gestamp, a Spanish component maker, recently revealed its decision to utilise Arvedi’s low-emission steel for its components production. As per Gestamp, the collaboration with Acciaieria Arvedi represents another stride towards implementing a circular economy within the company’s overall business approach.
Last year, Arvedi obtained the carbon neutrality certificate for its Cremona plant. This was after drastically reducing scope 1 and scope 2 emissions by investing in a new EAF supplied by Tenova, and cutting the use of pig iron and other polluting raw materials.
The first carbon neutral certificate for Arvedi’s coils was issued for a large contract with Mercedes Benz that started in 2023.
Chief executive Mario Caldonazzo revealed last year the steelmaker has received demand for carbon-neutral steel and is in talks with other automakers.
Natalia Capra France
US White Cap acquires Ohio rebar supplier B&R Reinforcing
Rebar and construction-supply distributor White Cap has acquired Ohio rebar supplier and fabricator B&R Reinforcing Inc, Kallanish learns.
B&R Reinforcing, based in Columbus, Ohio, carries inventory of rebar from #3 through #18 and specialises in cutting, bending and fabricating. It provides a wide range of dry and liquid chemicals, wire mesh and metal and plastic support chairs.
“B&R Reinforcing’s strong reputation around rebar fabrication and concrete accessory supplies for customers in the central Ohio market provides an excellent foundation for White Cap to expand our value-added services and one-stop shop across Ohio, so we can continue to serve our customers with excellence,” says Alan Sollenberger, chief executive of White Cap.
“With White Cap being the premier distributor for construction materials, and B&R Reinforcing being the preferred rebar fabricator in Columbus, our team at B&R Reinforcing has an excellent opportunity for growth and continued success. We are excited to become part of the White Cap family,.” says Michael Bright, co-owner of B&R Reinforcing
The transaction marks a continuation of a rapid expansion trend for White Cap. Last month, the Atlanta, Georgia-based company acquired Virginia based Rebar Solutions.
John Isaacson USA
Decarbonizing logistics: charting the path ahead
As global organizations chart a path to net zero, many are looking to the next frontier of emissions reduction: “Scope 3” emissions. These emissions are not directly produced by a company’s operations, but embedded in its supply chain. They account for the vast majority of companies’ emissions, and a significant portion are generated from supply chain and logistics activities—in particular, from the combination of road and ocean freight.In total, logistics emissions from freight and warehousing account for at least 7 percent of global greenhouse gas (GHG) emissions. Any successful path to net zero will thus need to address them as part of a company’s holistic environmental, social, and governance (ESG) strategy.
InQuik: revolutionizing concrete construction with Steel
InQuik, an Australian company, has developed a game-changing method for building reinforced concrete bridges. Their innovative system uses prefabricated steel formwork and reinforcement, creating lightweight, self-supporting modules built offsite. These modules are easily transported and lifted into place before being filled with concrete on-site, significantly reducing construction time and complexity.
InQuik bridges boast numerous advantages:
- Faster, Safer Construction: Installation requires minimal skilled labor and lightweight cranes, minimizing risks and taking just days.
- Durability and Sustainability: Engineered for a 100-year lifespan with minimal maintenance, these bridges have proven resilient against natural disasters.
- Versatility Beyond Bridges: The InQuik System can be adapted for buildings, car parks, data centers, and even jetties.