European HRC market remains stable amid muted activity
Domestic prices for European hot-rolled coil remained stable on Sept. 12, on muted market activity as buyers remained cautious amid expectations of further decreases in prices later in the year.
Additionally, prices seemed to be experiencing more of a downward pressure within Northern Europe amid worsening macroeconomic factors, while Southern Europe remains relatively stable, sources said.
“Booking prices dropping further down,” a distributor source said. “Seems Southern Europe is doing better than Northern Europe right now.”
Sources noted that many consumers were holding off buying any more material in the hopes that prices continued to become more favorable towards the end of the year. Additionally, inventory levels remained high, further dampening demand for domestic material.
“We need to follow booking prices carefully,” the distributor source said. “Customers are still looking where prices are bottoming.”
Platts assessed Northwest European HRC at Eur565/mt ex-works Ruhr on Sept. 12, stable on the day
Offers were reported at Eur570/mt EXW Ruhr.
Meanwhile, Platts assessed domestic HRC prices in Southern Europe at Eur570/mt EXW Italy, stable on the day.
Tradable values were reported at Eur570-575/mt EXW Italy.
Platts assessed imported HRC in Northwest Europe stable on the day at Eur559/mt CIF Antwerp and imported HRC in Southern Europe stable on the day at Eur555/mt CIF Italy.
Regarding green steel, prices in Europe continued to fluctuate, particularly as consumers were hesitant to purchase new material at a premium compared to conventional steel.
Faced with the existing pressure in the coils market, green steel has also struggled to attract the necessary demand, especially for the automotive industry, which is facing increasing costs and a lull in demand. As a result, prices for green steel could differ significantly.
“The exact premiums can vary,” the distributor source said. “[It can be] based on demand and regional factors.”
Platts assessed carbon-accounted HRC Ruhr at Eur660/mt EXW Ruhr, stable on the day.
Geraint Moody | Devbrat Saha
Cronimet acquires Czech metals recycling company to strengthen Central Europe presence
Germany-based Cronimet, a specialist in stainless steel scrap and ferroalloys, has acquired the Czech Republic’s MetallPlast Recykling to strengthen its presence in Central Europe, the company said Sept. 11.
Cronimet, headquartered in Karlsruhe, Germany, is present worldwide in around 75 locations. According to its website, it recycled 1.57 million metric tons of stainless steel in 2023.
MetallPlast Recykling is based in North Bohemia, and specializes in the processing and recycling of nonferrous metal, ferrous scrap and stainless steel. The company did not immediately respond to a request for comment regarding its recycling capacity.
Cronimet said MetallPlast Recykling’s seven sites in Central Europe and the firm’s vehicle fleet offer “a valuable addition to the … group’s network of sites and product portfolio.”
“This acquisition is a strategic step that strengthens our market position in Central Europe,” said Cronimet CEO Jurgen Pilarsky. “In particular, the geographical location of the sites and the complementary focal points in the operating business offer great synergy potential.”
At the beginning of 2024, Finnish stainless steelmaker Outokumpu acquired a 10% stake in Cronimet, and the two companies agreed to work together on innovation and research for the decarbonization of the stainless-steel industry.
Platts, part of S&P Global Commodity Insights, assessed the monthly European alloy surcharge for grade 304L bright bar at Eur2,838-3,140 per metric ton in August, down from Eur3,047-3,380/t in July.
Sweden’s H2 Green Steel rebrands as Stegra, eyes projects in Portugal, Canada, Brazil
H2 Green Steel, the startup targeting to produce steel with up to 95% less CO2 emissions in Boden, Sweden, said Sept. 12 it is also looking at projects outside the country while announcing a rebranding to Stegra.
Stegra will explore the potential for growth over the long term, leveraging its experience at the Boden plant, it said in the press release.
“Stegra has a solid funnel of potential projects outside of Sweden that are being explored as part of a longer-term outlook,” the company said.
Projects are characterized by locations where the company’s customers need help with value-chain decarbonization and those that offer abundant access to renewable power and strong grid connections. The locations under consideration include Portugal, Canada and Brazil.
“Presently, a project in Portugal, where the site selection has been made and land reserved near Sines, is the most advanced. Notification on substantial allocation of the power needed has been made to Stegra and our local value chain partnerships continue to evolve,” said CEO Henrik Henriksson.
H2 Green Steel was launched in 2021 to reduce emissions in the steel industry within an ambitious timeline and it is Europe’s first greenfield mill in 50 years, set to produce low-carbon steel in a fully integrated production process, using electricity from renewable sources and green hydrogen.
H2 Green Steel’s project includes a giga-scale green hydrogen plant as an integrated part of the steel production facility. Use of hydrogen rather than coal in the production represents one of the main routes for the industry to reduce its CO2 emissions, with H2 Green Steel pioneering the technology in Europe. The facility will produce the green hydrogen necessary to make green iron and plans to supply 5 million metric tons of high-quality green steel to the market by 2030.
A Stegra spokesperson told S&P Global Commodity Insights that timeline for the Boden mill remains with the company that has started to put roofs on buildings in August and during summer received the first production equipment.
“We are building the railway on the site that will connect to the public railway. Presently we are around 1,000 construction workers on site and this will grow exponentially over the coming months,” she said.
Having secured funding of Eur6.5 billion for its venture, the company is one of the most watched energy transition startups as the steel industry is responsible for around 5% of CO2 emissions in the EU and 7% globally. The sector needs to develop and commercialize new low-CO2 technologies within the next 5-10 years to be in line with the EU’s climate targets.
Platts carbon-accounted steel assessments
Following market trend and recent technology innovations, Platts, part of Commodity Insights, launched Sept. 11 the first ever carbon-accounted rebar and medium sections assessments, after having launched in May 2023 the world’s first carbon-accounted flat steel assessment for HRC.
Platts assessed Northwest European carbon-accounted hot-rolled coil at Eur660 per metric ton ex-works Ruhr Sept. 11, stable on the day. Platts assessed Northwest European carbon-accounted rebar at Eur685/t EXW Northwest Europe on Sept. 11, Commodity Insights data showed.
Tradable values for the premium were reported at Eur30-40/t for CO2e content around 0.1-0.2 metric ton, and at Eur30-180/t for CO2e content around 0.1-0.5 metric ton, both under scopes 1-2.
Platts assessed European carbon-accounted medium sections at Eur882.50/t DDP Europe on Sept. 11. Tradable values for the premium were reported at Eur80/t for CO2e content around 0.1-0.2 metric ton, and at Eur30-180/t for CO2e content around 0-0.5 metric ton, both under scopes 1-2, according to data from Commodity Insights.
Tata UK could seek recycling company acquisition
Tata Steel UK could weigh up acquiring a recycling company to ensure supply of scrap for its planned transition to an electric arc furnace, Kallanish notes.
Two sources from large UK scrap companies tell Kallanish that Tata Steel had been reviewing potential acquisition opportunities within the last 12 months, reportedly making a bid for at least one UK facility, which was not successful. The steelmaker was not available for comment on this before Thursday deadline.
However, when asked during the UK Metals Expo on Thursday about the potential for securing its own scrap processor, Tata Steel UK head of public relations Tim Rutter said: “I think if you were an MBA student, doing a project about the steel industry and moving towards electric arc furnace steelmaking, you’d list a number of options.”
“You can continue a relationship with your scrap suppliers as a customer … you can work collaboratively as we are already doing as part of our collaboration with Swansea University on segregation, or buy scrap supply and become vertically integrated,” he told Kallanish at the event in Birmingham.
Rutter noted during an earlier panel: “There is clearly an emerging trend in the industry, which is collaboration, between private industry, government, academia [and] research institutes where people, more than I ever remember in my career, are working hand in hand for the common good.”
“Watch this space” he added.
One of the market sources views the steelmaker buying a recycling company as a move with no downside. “They should, and I think they will,” they tell Kallanish. “They’re spending their money opening an EAF, and they need scrap to feed it.”
“For Tata, there is no downside. It’s security of supply, at the end of the day,” the source adds, noting that another UK steelmaker, Celsa, had recently opened its own recycling facility with a material shredder.
“Tata Steel have certain expertise in house, and they already understand what quality they’re after. They either collaborate with recycling companies to get that blend, or buy a recycling company to get it,” the source continues.
The UK exports around 10 million tonnes/year of ferrous scrap, while domestically, the feedstock has become more challenging to secure, according to market sources, even before Tata switches to EAF steelmaking from 2027. This will see the firm’s scrap requirement rise to 2-2.5m t/y.
“There’s a lot less [scrap] available now, the supply of material is a lot harder. There is less demolition from construction and macroeconomic factors, with less [consumer] spend on cars, etc,” the market source adds.
They also note the volatility in scrap markets, with peaks and troughs becoming more frequent, which can be hard to navigate for buyers and sellers.
A second market source believes Tata Steel is underestimating the challenges involved with sourcing such a volume of scrap from the market or acquiring its own recycling company.
“It’s a very steep investment and a serious amount of capital investment to change the grading [of the scrap for an EAF],” the source says. Some scrap grades can have higher residual copper levels which would need managing, as well as needing to segregate chrome from other grades, they add.
“Tata will have to pay more money for the scrap as they’re asking the yards to do more work,” they note. “Naturally, you go towards shredders, but there’s not the volume coming out of the shredders in the UK today for what they need. With Celsa competing for material, the price of the shredder feed is going to have to go up.”
The second source explains that some facilities would not be good acquisition targets due to logistical limitations, with 2mt of scrap unlikely to be transported by road, while other facilities may not have the machinery needed such as shredders.
A shredder could cost £12 million ($15.7m), in addition to the acres of land needed for segregation and sorting the material, plus staff and engineers for maintenance and repairs, the source concludes.
Carrie Bone UK
Acciaierie d’Italia revives shipping fleet, Marcegaglia shows interest
Acciaierie d’Italia (ADI)’s special administration is resuming logistics operations and investing in the rehabilitation of the company’s shipping fleet. The goal is to improve the efficiency, reliability, and competitiveness of the steelmaker’s activities on the national and international markets, Kallanish learns from the company.
A mission to restore the most strategic ships has begun, with the Gemma vessel resuming navigation and commercial activity earlier this week. The ship had been stranded in Singapore for more than three years, since 2020. “Due to a lack of maintenance and expired class certificates, all five ships in the fleet, as well as the eight floating units, were both stationary and inactive. We quickly implemented a focused recovery plan, prioritising strategic units,” Angelo Colucci, ADI director of logistics, supply chain and maritime services, says in a note.
While other vessels are undergoing maintenance, the fleet’s flagship, the 30,000-tonne Ursa Minor, will set sail again this week. It will transport finished and semi-finished products, including coil, from Taranto to ADI’s northern Italian facilities via the port of Genoa.
Meanwhile, earlier this summer, representatives from trading company Steel Mont, Metinvest, Oman-based Vulcan Green Steel (VGS), and Canada’s Stelco conducted visits with a view to acquiring ADI’s mills in Genova, Novi Ligure, and Taranto. Marcegaglia, the Italian steelmaker and re-roller, has recently shown interest in participating in the race and may submit a letter of interest by 20 September, the submission deadline. According to an informed source, the re-roller may only be interested in parts of ADI’s assets, specifically the tube mills and one of the northern Italian re-rolling plants.
Unions are insisting the government keeps a shareholding in Acciaierie d’Italia to guarantee the steelmaker’s correct management. “This concrete monitoring activity is essential to avoid what happened in the past with ArcelorMittal, which was able to act undisturbed, in violation of agreements and rules, precisely because of an almost absent state,” the USB unions note.
ADI aims to produce between 1.9-2.2 million tonnes of steel this year. Based on the most recent update of the relaunch plan communicated to workers, the special commissioners have set a target to restart blast furnace No.1 in October. In 2025, around January or February, BF No.2 will also be restarted. Production will be assured by BFs Nos.1, 2, and 4 by the first quarter of 2026. In 2025, the plant is projected to reach a capacity of 4.5-5m t/y.
Taranto is currently utilising BF. No 4 for operations. BF. No.5 has been inactive for a number of years, while Nos.1 and 2 ceased production a few months ago.
Natalia Capra France
Cogne approves capital increase to buy Mannesmann
Cogne Acciai Speciali has approved a €45 million ($50m) capital increase. This decision will provide the necessary financial support for the acquisition of Mannesmann Stainless Tubes from Salzgitter AG, Kallanish learns from the Italian stainless long steel producer.
In a statement, Cogne highlights that this financial operation is a significant move designed to bolster the company’s ongoing expansion and strengthen its position in the special steel industry. It aims to enhance its portfolio and expertise in the global market.
The acquisition is expected to be finalised in the fourth quarter. Cogne, a subsidiary of Walsin Lihwa, is committed to expanding its global reach and catering to increasing demand from the aerospace, nuclear, medical, and energy sectors. As part of its ongoing efforts to improve operations, the company is currently investing in the modernisation of its Aosta plant in Italy. This includes revamping the cooling chamber of the continuous casting machine for special steel blooms. The upgrade was implemented during this year’s four-week summer shutdown.
The steelmaker recently expanded its operations by acquiring ComSteel Inox, its main stainless steel scrap supplier, and a portion of Outokumpu’s long products business in Degerfors and Storfors, Sweden.
Since it was acquired by Walsin Lihwa, it has grown through a series of mergers. Last year, it completed the acquisition of Sheffield-headquartered Special Melted Products (SMP). Walsin is investing over €110 million ($121m) in Cogne’s Aosta plant between 2022-2024. The growth strategy involves gaining market share in Europe and Asia, and developing the group’s presence in the US (see Kallanish passim).
Natalia Capra France
ArcelorMittal Eisenhüttenstadt launches hot strip mill automation platform
ArcelorMittal Eisenhüttenstadt has produced the first coil after upgrading the automation solution at its hot-rolling mill. It is the first mill be fully equipped with Primetals’ latest state-of-the-art automation platform, Kallanish hears from the technology supplier.
The implementation was carried out during scheduled maintenance periods in two steps for the finishing mill and coiler area, and the roughing mill, respectively. With the new automation equipment and software, operators at the hot-rolling mill now benefit from higher availability, according to Primetals.
During the migration, core functions remained in operation, allowing operators and maintenance staff to immediately navigate the software with ease. The automation devices were mainly installed in the former system’s control cabinets, resulting in a short and swift implementation period. Joint preparations and top-level performance of the automation platform were key factors in bringing the plant back to normal production in a short time, Primetals notes.
Christian Koehl Germany
Kerschgens expands Stolberg site
German distributor Kerschgens is expanding its main site in Stolberg near Aachen, close to the borders of Belgium and the Netherlands.
The enlargement at Stolberg will mean the closure of the sites in nearby Würselen and in Viersen, some 70km further north, all in North Rhine Westphalia state. According to a manager, three houses in and around Viersen are mere distribution warehouses which the company established as hubs decades ago, and that do fit in the company’s current structure.
“It made little sense to invest in new storage technology at sites that do not meet today’s standards any more,” he tells Kallanish. The company is therefore building a new hall of 13,000m² with a modern high-bay warehouse in Stolberg for an overall investment of some €20 million ($22m), he says.
In its announcement of the groundbreaking ceremony last week, Kerschgens highlighted its acquisition of Carlier Blechbearbeitung, a sheet-working company, based in Aachen. Kerschgens says it plans to grow this activity further, and for that purpose needs to expand space. The company is a full-range distributor, with an emphasis on long products.
Following the acquisition of Carlier in 2022, Kerschgens employs 247 people at its sites in Stolberg, Aachen, Würselen, Bitburg and Trier, the latter two some 100km south in Rhineland-Palatinate.
Christian Koehl Germany
European HRC prices down further; outlook still poor
The overall outlook for the European HRC market remained negative. Weak demand and oversupply were still the main concerns, Fastmarkets understands.
Despite rumors that production cuts may be needed to balance the market, producers seemed uninterested to take such a step. Fastmarkets heard that mills did not want to lose their free carbon credits, which were allocated based on actual steel output.
“I would like to say that the situation will improve soon, but the outlook remains negative,” a producer source told Fastmarkets.
In Northern Europe, mills were heard offering HRC with lead times of four to six weeks at €580-600 ($640-662) per tonne ex-works.
But according to Fastmarkets’ sources, suppliers would easily agree to sell at €560-570 per tonne ex-works. This was the price range considered to be workable by buyers.
Fastmarkets’ sources reported some deals heard at €560 per tonne ex-works.
Fastmarkets calculated its daily steel hot-rolled coil index, domestic, exw Northern Europe, at €571.06 ($629.75) per tonne on Thursday, down by €6.44 per tonne from €577.50 per tonne the previous day.
The index was down by €16.54 per tonne week on week and by €48.94 per tonne month on month.
“The mills in Northern Europe are hungry for orders. But the buyers see that the market is falling and are not booking much,” a buyer source said.
Meanwhile, in Southern Europe, Fastmarkets calculated its corresponding daily steel hot-rolled coil index, domestic, exw Italy, at €570.63 per tonne on Thursday, down by €0.62 per tonne from €571.25 per tonne on the previous day.
The Italian index was down by €14.37 per tonne week on week and by €46.87 per tonne month on month.
In Italy, offers of HRC were heard at €580-590 per tonne delivered, which would net back to €570-580 per tonne ex-works.
Market participants estimated the tradeable market price at €560-570 per tonne ex-works.
“Trading activity is very low, reaching its lowest level in months. It is close to the bare minimum,” a second buyer source told Fastmarkets.
According to Fastmarkets’ sources, booking imported material was not attractive because of the long lead times and the small price gap to domestic HRC prices in Europe.
Offers of Asian material to Italy were heard at €550 per tonne CFR. Turkish HRC was also offered to Italy at €550 per tonne CFR, including anti-dumping duty.
Green steel
Fastmarkets’ weekly assessment of the green steel domestic, flat-rolled, differential to HRC index, exw Northern Europe, was €100-200 per tonne on Thursday, stable week on week.
The green steel market was also very quiet in Europe, tracking the general downturn in the steel sector.
During the week to Thursday, sources reported offers of green steel – with Scope 1, 2, and upstream Scope 3 carbon emissions of less than 0.8 tonnes per tonne of steel – at €200-350 per tonne from European suppliers.
Industry sources estimated achievable prices for such material at €100-150 per tonne.
“Premiums of €250-350 per tonne are for steel sold under long-term contracts. In the spot market, it is possible to get lower prices,” a buyer source said.
Notably, recent trades for steel with Scope 1, 2 and upstream Scope 3 emissions of less than 0.8 tonnes of CO2 per tonne of steel were reported at €100-150 per tonne in September, with one transaction undercutting the mark of €100 per tonne.
Published by: Julia Bolotova, Darina Kahramanova
Weak demand drags on sentiment across Southern European long steel market
Mills attempted to reverse the downward price trend by raising their offer prices, but weak demand resulted in stable prices at low levels, sources said.
Fastmarkets’ price assessment for steel reinforcing bar (rebar) domestic, exw Italy was €590-610 ($651-673) per tonne on Wednesday, narrowing downward by €10 per tonne from €590-620 per tonne one week prior.
Market participants reported ongoing weak demand and consequently minimal restocking among customers.
Mills attempted to raise offer prices due to high electricity costs, but these prices have not yet been accepted by the market.
“Rebar producers are trying to invert the price trend due to high energy costs. Demand remains low and at the moment customers don’t seem so interested in restocking,” one buyer source told Fastmarkets.
Some sources reported that mills were cutting production in a bid to stop downward pressure on prices.
“Now producers have decided to stop production in order to increase the price,” a second buyer source said.
Scrap prices edged upward week on week amid an inversion of price trend in the Asia-origin billet import market.
Fastmarkets’ calculation of its daily index for steel scrap HMS 1&2 (80:20 mix) North Europe origin, cfr Turkey was $365.19 per tonne on Wednesday, up by $5.32 per tonne week on week, but down by $8.49 per tonne month on month.
Fastmarkets’ price assessment for steel reinforcing bar (rebar), domestic, delivered, Spain was €620-640 per tonne, stable week on week.
Southern European wire rod
Fastmarkets’ price assessment of steel wire rod (mesh quality), domestic, delivered Southern Europe was €610-630 per tonne on Wednesday, down by €10 per tonne from €620-640 per tonne a week earlier.
Weak demand and high feedstock costs continued to weigh on European mills, sources said.
“Customers who were meant to buy have already restocked the quantities they need and now the new requests for wire rod at lower prices feel like pure market provocation to verify the downward price trend,” a wire rod producer source told Fastmarkets.
“The steel mills of Europe are coming from a long period of suffering due to low demand from the construction and automotive sector combined with high costs of energy,” the source added.
Published by: India-Inés Levy