European HRC prices remain unchanged amid muted activity
Domestic prices for European hot-rolled coil remained unchanged Aug. 29 amid sluggish demand and muted activity.
“No major changes since last updates,” a distributor source said. “Customers are slowly coming back, but not showing a real demand.”
Market sources are unsure regarding the outlook for European coils in the next few weeks, with some speculating there may be some movement as market players return from holidays and mills attempt to fill order books.
Platts assessed Northwest European HRC at Eur595/mt ex-works Ruhr Aug. 29, stable on the day.
Offers were reported at Eur580/mt ex-works Northwest Europe, however these prices were for larger tonnages, which fall outside the Platts methodology specifications.
Tradable values were reported at Eur590-600/mt ex-works Northwest Europe.
Meanwhile, Platts assessed domestic HRC prices in Southern Europe at Eur595/mt ex-works Italy Aug. 29, also stable on the day.
Interest in imported HRC has been rising as some mills have lowered offers, and agreed to pay safeguard duties in some cases. A favorable exchange rate between the euro and dollar has also made imports more appealing, sources said.
Platts assessed imported HRC in Northwest Europe stable on the day at Eur559/mt CIF Antwerp.
Offers for China-origin material continued to permeate the market, reported at Eur560/mt CFR Antwerp, including anti-dumping duties. Offers for Vietnam-origin material were heard at Eur550/mt CFR Antwerp.
“Probably next week we will have some movement,” a distributor source said.
Salzgitter signs wind power purchase agreement with Swedish provider
German steel company Salzgitter and Swedish state-affiliated energy group Vattenfall have signed a fifteen-year power purchase agreement for 300 GWh/year of wind from a farm currently being built in the North Sea, off the northwestern coast of Germany, Salzgitter said Aug. 29.
The PPA stipulates that fossil-free electricity from the Nordlicht 1 offshore wind farm will be available for Salzgitter’s steel production from 2028, and that Salzgitter will receive a share of 75 MW of connected load from Nordlicht 1 over a period of 15 years.
Green steel needs green energy, and that is why this agreement is important in securing energy needs for the Salcos program (transformation of steelmaking operations toward low-CO2 production processes), Gunnar Groebler, executive chairman of Salzgitter, said in the statement.
Salcos is aimed at decarbonizing production at Flachstahl — Salzgitter’s largest steelmaking site — by switching the mill’s manufacturing process from being blast furnace-basic oxygen furnace (BF-BOF) based to using direct reduction of iron-electric arc furnace (DRI-EAF) technology powered by fossil-free electricity and green hydrogen. Once implemented in 2033, it will enable a 95% drop in Salzgitter’s own CO2 emissions, as well as reducing Germany’s overall CO2 emissions by 1%.
For Salzgitter, the electricity partnership with Vattenfall is the seventh green power PPA secured for its Salcos green steel project. In total, they should ensure that by 2025, half of the Flachstahl plant’s power demand comes from non-fossil sources, increasing to 100% coverage in 2030.
Vattenfall is building the Nordlicht 1 offshore wind farm comprising 68 wind turbines for a total capacity of 980 MW about 85 km north of the German island of Borkum. The farm is scheduled to be connected to the grid in 2028. Vattenfall holds a 51% stake in the project and wants to use its share of future electricity generation to supply customers in Germany.
Vattenfall’s Head of the Markets Martijn Hagens said that customers highly value PPA-based power supply as it offers competitive prices and a guarantee of origin — that the electricity quantities purchased actually come from renewable sources, including proof of the type and location of generation.
The guarantee of origin will lend both Vattenfall and Salzgitter the right to claim a premium for their respective products. For Salzgitter, the GO will be a tool to prove its steel is green.
The number of electricity partnerships between producers and industrial companies is set to grow; the PPA volume in Germany alone could rise to 192 TWh by 2030 – covering a quarter of the country’s total electricity demand, Salzgitter said citing the German Energy Agency.
Green steel premiums widen downward in Europe amid subdued demand
Sources reported offers for green steel with Scope 1, 2 and upstream Scope 3 carbon emissions below 0.8 tonnes per tonne of steel at €200-350 ($223-391) per tonne from European suppliers. Those values have been unchanged since last week.
Higher offers of €300-350 per tonne were reported for material carbon-neutral for Scope 1 and 2 emissions, sources said.
Industry sources estimated achievable prices for such material at €100-150 per tonne.
“Some suppliers [of green steel] are ready to provide discounts on bookings for certain tonnages,” a buyer source said.
Latest bookings for flat steel with carbon emission content of around 0.6-0.8 tonne per tonne of steel were reported at €170-200 per tonne in end-July, early August.
“Demand [for green steel] is very limited; we get few inquiries [for green steel] from the buyers. It’s partially related to overall economy slowdown in the EU,” a mill source said, adding that they were maintaining €200 per tonne as a threshold for green steel premiums.
“Some green steel producers are more flexible price-wise, but for steel carbon dioxide content below 500kg per 1 tonne of steel [a] premium below €200 per tonne makes no sense,” a mill source added.
Fastmarkets’ weekly assessment of green steel domestic, flat-rolled, differential to HRC index, exw Northern Europe was €150-200 per tonne on Thursday, widening from €170-250 per tonne on August 22.
The corresponding green steel base price, HRC exw Northern Europe, daily inferred was €767.50 per tonne on August 29.
Published by: Julia Bolotova
Lack of demand continues to limit activity in Northern European long steel market
The seasonal summer slowdown further inhibited demand, sources said.
There was little hope of short-term recovery, sources added, with ongoing economic uncertainty and regulatory obstacles resulting in a lack of significant construction activity being initiated.
Fastmarkets’ weekly price assessment for steel reinforcing bar (rebar), domestic, delivered Northern Europe, was unchanged at €620-635 ($690-707) per tonne on Wednesday.
The significant oversaturation of long steel at cut and benders continues to put downward pressure on rebar prices, sources told Fastmarkets, and some mills have started looking further afield within the EU to try and find more receptive markets for their products.
“Poland is a good market now,” a buyer source in the Netherlands said. ”There are fewer regulations for developers to abide by [so] there are more possibilities.”
Scrap prices, meanwhile, have continued to fall since the beginning of the month due to the recent downturn in Asia-origin billet import prices, which has, in turn, lowered feedstock costs for European long steel mills.
Fastmarkets’ calculation of its daily index for steel scrap HMS 1&2 (80:20 mix) North Europe origin, cfr Turkey, was $361.15 per tonne on Wednesday, down by $5.99 per tonne week on week, and down by $22.50 per tonne month on month.
Fastmarkets’ weekly price assessment for steel wire rod (mesh quality), domestic, delivered Northern Europe, meanwhile, was unchanged at €615-650 per tonne.
Mills have maintained steady wire rod prices across Europe since July, sources said, adding that small price declines could be expected when mills fully reopen after their summer closures.
“Mills have rolled over prices for the Summer break, [but] we could start to see offers that are €10-15 lower than the current prices for September,” a wire rod producer source said.
Published by: India-Inés Levy
Southern Europe long steel markets remain quiet amid seasonal closures
While some mills have reopened following their summer holiday breaks, other mills will return only by the beginning of September, market sources said.
Fastmarkets’ price assessment for steel reinforcing bar (rebar), domestic, exw Italy, was €610-630 ($679-702) per tonne on Wednesday, widening downward week on week from €620-630 per tonne.
Minimal activity in the construction sector resulted in poor demand, which in turn resulted in small price declines in the Italian rebar market.
Market participants forecast that activity would begin to pick up in September when the market reopened after the summer absences.
“The downtrend we had before the summer holidays seems to go on, and now we have no signals from mills of a new price increase. Demand remains low but we hope that, next week, when all customers open [for business], the market will wake up,” a buyer source from the region said.
“The market is still very weak, but activity is picking up very calmly,” a producer source said.
“I think that this week will be quiet while construction sites slowly resume work,” a second buyer source said.
Meanwhile, scrap prices have continued to fall since the beginning of the month due to a recent downturn in prices for Asia-origin billet imports.
This has in turn lowered feedstock costs for European long steel mills.
Fastmarkets’ calculation of its daily index for steel scrap, HMS 1&2 (80:20 mix), North Europe origin, cfr Turkey, was $361.15 per tonne on Wednesday. This was up by $5.99 per tonne week on week, but down by $22.50 per tonne month on month.
Fastmarkets’ price assessment for steel reinforcing bar (rebar), domestic, delivered Spain, was €630-640 per tonne on Wednesday, down week on week by €10-15 per tonne from €645-650 per tonne.
Tradeable values for small volumes were reported by market participants in the Spanish market at €630 per tonne. There was minimal demand, however, especially for large quantities.
Southern Europe wire rod
Meanwhile, Fastmarkets’ price assessment for steel wire rod (mesh quality), domestic, delivered Southern Europe, was €625-640 per tonne on Wednesday, unchanged since June 12.
European mills have been keeping prices stable in the Southern Europe wire rod market, trade sources said. But small decreases could be expected when the mills reopen after the summer closures, Fastmarkets heard.
“Mills have rolled-over prices for the summer break,” a wire rod producer source said. “However, I think we could start to see offers for September that are €10-15 [per tonne] lower than current prices.”
Published by: India-Inés Levy
SSAB appoints Johnny Sjöström new chief executive
Johnny Sjöström, currently head of the SSAB Special Steels division, has been appointed president and chief executive of SSAB, Kallanish learns.
He will start in his new position on 28 October, succeeding Martin Lindqvist who previously announced he is leaving the company for a board career. Sjöström has been head of SSAB Special Steels since 2019. In that role, he has worked to develop and grow the company’s business for special steels and overseen the green transformation of SSAB’s steelworks in Oxelösund. He was formerly ceo of Uddeholm and held different management positions at Outokumpu Stainless Oy.
Sjöström “has solid technical knowledge and extensive experience within the industry in the Nordic region and internationally,” says Lennart Evrell, SSAB chairman. “With his background and experience, he is the right person to lead SSAB forward.”
Lindqvist will remain president and ceo until 27 October.
Christian Koehl Germany
French construction sentiment improves slightly
Sentiment among French construction companies improved slightly in August. According to L’Institut National de la Statistique et des Études Économiques (Insee), construction companies active in both structural works and finishings reported a slightly more positive business climate and an improved attitude towards their future but also their past activity.
The sentiment improvement however remains moderate as “economic uncertainty felt by construction managers is virtually stable”, says an Insee report obtained by Kallanish.
In August, construction companies’ order books are considered stable. Given their staff size, the firms surveyed reported eight months of work. Production capacity was stable on-month, while 44% of firms reported slowing output because of supply difficulties.
Production bottlenecks are continuing. The same number of business managers as in July are facing obstacles which limit their production capacity. About 18% of construction firms consider themselves unable to increase their production in case of additional orders due to a lack of personnel and supply difficulties. About 42% of companies reported being at the limit of their production capacity and 32% report they are facing “insufficient” demand. The production capacity utilisation rate has slightly decreased this month, Insee concludes.
The situation in France for steel consumption downstream continues to be subdued. The distribution sector is seeing a challenging year. The main concern revolves around tight margins, French distribution sources say.
Some improved demand has however been reported for rebar in July and August, with orders coming in and production levels rising slightly. Activity has not properly resumed this week after the August summer break. One distributor says buyers are now in a wait-and-see mood. Market participants expect a clearer direction next week.
Natalia Capra France
US confirms AD determination on French plate
The US Department of Commerce has settled upon an antidumping margin of 0.0% for cut-to-length carbon and steel plate from French producer Dillinger France.
The determination is consistent with Commerce’s preliminary assessment, Kallanish learns from the Federal Register.
Commerce found that during the period of review, May 2022 through April 2023, the producer made no shipments.
The subject products under review fall into the Harmonized Tariff Schedule of the US (HTSUS) subheadings 7208.40.3030, 7208.40.3060, 7208.51.0030, 7208.51.0045, 7208.51.0060, 7208.52.0000, 7211.13.0000, 7211.14.0030, 7211.14.0045, 7225.40.1110, 7225.40.1180, 7225.40.3005, 7225.40.3050, 7226.20.0000, 7226.91.5000, 7208.40.6060, 7208.53.0000, 7208.90.0000, 7210.70.3000, 7210.90.9000, 7211.19.1500, 7211.19.2000, 7211.19.4500, 7211.19.6000, 7211.19.7590, 7211.90.0000, 7212.40.1000, 7212.40.5000, 7212.50.0000, 7214.10.0000, 7214.30.0010, 7214.30.0080, 7214.91.0015, 7214.91.0060, 7214.91.0090, 7225.11.0000, 7225.19.0000, 7225.40.5110, 7225.40.5130, 7225.40.5160, 7225.40.7000, 7225.99.0010, 7225.99.0090, 7226.11.1000, 7226.11.9060, 7226.19.1000, 7226.19.9000, 7226.91.0500, 7226.91.1530, 7226.91.1560, 7226.91.2530, 7226.91.2560, 7226.91.7000, 7226.91.8000 and 7226.99.0180.
Kristen DiLandro USA