ArcelorMittal Luxembourg improves sustainability following ResponsibleSteel audit
Following the recent ResponsibleSteel assessment, ArcelorMittal Luxembourg’s Belval, Differdange, and Rodange operations are investing in improving sustainability. The sites’ ResponsibleSteel certification has recently been renewed, Kallanish notes.
The Luxembourg long products division, which received certification three years ago, aims to recycle 100% of its byproducts by 2030 and is now developing 13 projects in response to the audit findings.
These include noise and vibration effect research on surrounding neighbours, as well as a new management strategy for the long-term recovery of waste and byproducts, and enhanced monitoring of their lifecycle.
“Once the [ResponsibleSteel] audit is completed, the sites receive a detailed report including points for improvement to accompany the certification … Since 2021, we have questioned and further improved our standards related to the environment, governance, and sustainability,” the steelmaker notes.
Earlier this year, ResponsibleSteel launched a new version of International Standard, 2.1, which strengthens the Progress Level requirements for responsible materials sourcing and climate change and greenhouse gas emissions. Steelmakers who meet the revised Progress Level requirements will for the first time be able to label and market their products as ResponsibleSteel certified (see Kallanish passim).
ArcelorMittal meanwhile announced its third-quarter sell-side analyst consensus figures based on analysts’ estimates provided by Visible Alpha, an independent entity. According to the forecast, the company’s Ebitda should reach $1.488 billion, with net income at $420 million.
Natalia Capra France
EU coil market sees limited justification for hikes
European buyers of coil still have doubts about mills being able to achieve their desired level of price hike, although they appreciate the move in principle.
The unofficial announcement made by ArcelorMittal in early October (see Kallanish 2 October) to bring up coil prices by €40/tonne ($43) was spoken out loud at the Euroblech trade show in Hanover last week. “Of course, prior to the trade show, Hannibal would climb on the elephant and trumpet a price,” one German attendant quipped. “And they [mills] will be sticking to it, yes, but the fundamental economic data are even below the forecasts of the first half-year, so where are the grounds for higher prices?” he wondered.
Although the increase attempt is considered justified in the interest of profitability for mills and a healthier pricing structure, some observers say that, one step down the chain, prices are still being spoiled at distributor level.
“High stocks are leading to severe competition between distributors and service centres, caused by the need for cash flow and for low inventories at year-end,” a Dutch manager told Kallanish a few weeks previously. That situation has not changed much. “There are still distributors conceding a loss when selling, to keep the shop running,” a distribution group manager said during last week’s trade show.
Sheet cut from hot rolled coil in countries like Germany, France and Italy is being handled at approximately €630/t ($684), sometimes less. The price would be just about acceptable if the coil was bought during the price trough in September, at less than €550/t, “but most material will be coil bought during times of prices exceeding €600”, another observer cautioned.
According to the Dutch source, low demand still means distributors and service centres are refraining from sending out inquiries to mills.
A source offering a totally different point of view is technology supplier Schuler, maker of sheet processing equipment. In the run-up to Euroblech, it issued a statement on what it called a structural crisis in the automotive industry. “Because of low car sales, the pressing plants are not being utilised and carmakers are refraining from investment,” Schuler wrote.
Christian Koehl Germany
European HRC prices largely unchanged; buyers doubt higher offers for 2025 could be achieved
Fastmarkets calculated its daily steel hot-rolled coil index, domestic, exw Northern Europe at €554.38 ($599.16) per tonne on Wednesday, down by €1.04 per tonne from €555.42 per tonne the previous day.
The index was up by €4.38 per tonne week on week and up by €12.71 per tonne month on month.
Mills in Northern Europe were heard pushing for higher prices for the first quarter of 2025, Fastmarkets understands.
Offers for January-delivery HRC were reported at €600-620 per tonne ex-works, with some suppliers offering even at €640 per tonne ex-works.
These levels have not been sealed in deals yet, sources told Fastmarkets.
Material with delivery in the fourth quarter of 2024 was available at lower levels. Transactions for December-delivery HRC were reported at €550-570 per tonne ex-works, while offers for such material were around €570-580 per tonne ex-works.
Buyers, however, were skeptical that mills would succeed in implementing the targeted price rise for the beginning of the next year.
A buyer source told Fastmarkets that just a few weeks ago HRC in Northern Europe was traded at €520-530 per tonne ex-works. The source questioned the sustainability of the new higher offers announced for the first quarter of 2025, which were as high as €600-640 per tonne ex-works.
“This is the same economy and the same outlook,” the source said, adding that demand for HRC is still low in Europe.
The latest report of the European steel industry association Eurofer indicated that apparent steel consumption would not recover in 2024, but some rebound could be expected for the next year.
A second buyer source described the new offers from mills as “wishful thinking”.
In Southern Europe, Fastmarkets calculated its daily steel hot-rolled coil index, domestic, exw Italy at €551.43 per tonne on Wednesday, up by €2.80 per tonne from €548.63 per tonne the previous day.
The Italian index was up by €3.05 per tonne week on week and up by €12.43 per tonne month on month.
Suppliers in Italy were offering December-delivery HRC at €570-580 per tonne delivered, which would net back to €560-570 per tonne ex-works, Fastmarkets heard.
Large volumes of HRC could still be traded at €540-550 per tonne ex-works, but the workable market level for small to medium tonnages was estimated at €560 per tonne ex-works, according to market participants.
Import prices remained uncompetitive and no fresh business was concluded on Wednesday, sources told Fastmarkets.
In Italy, November-shipment HRC from Turkey was on offer at €580-590 per tonne CFR to Italy, including the anti-dumping duty, while Asian material was offered at €550-570 per tonne CFR, but buyers’ estimates for the tradeable market level was lower, at €530 per tonne CFR.
Published by: Darina Kahramanova
UK government confirms 2027 CBAM introduction
The UK government has confirmed that its Carbon Border Adjustment Mechanism (CBAM) will start from January 2027, it says in a published consultation document dated 30 October.
It says the mechanism will place a carbon price on some of the most emissions-intensive industrial goods imported to the UK from the aluminium, cement, fertiliser, hydrogen, iron and steel sectors. Within these sectors, the CBAM will only apply to specific imported “CBAM goods”, determined by the product level scope of the CBAM and identified by commodity code.
The document confirmed, as previously announced, the mechanism will be applied to “direct”, “indirect” and select “precursor” product emissions embodied in imported CBAM goods, Kallanish notes.
The consultation, which launched back in March, proposed that imported scrap, identified via commodity codes, within relevant sectors will not be within the scope of the UK CBAM.
The government adds that the January 2027 start date would balance the need to give businesses time to prepare, while also taking action on carbon leakage amid its ambition to decarbonise the country.
Companies who responded to the consultation include British Steel, Celsa Steel UK, Electrosteel UK Ltd, Hyundai Steel, Jaguar Land Rover, Mughal Steel, Salzgitter Mannesmann UK, Stemcor, Tata Steel Europe and UK steel.
The UK’s current main measure to mitigate carbon leakage risk is the system of free allocation under the UK ETS. Reforms to the UK ETS, as set out by the UK ETS Authority in July 2023, will reduce the number of permits available for purchase from government by 45% between 2023 and 2027, and the number of free allowances will also decrease.
The document also notes that in September 2024 the UK ETS Authority consulted on moving the start of the second free allocation period from 2026 to 2027 and extending the current allocation period to include 2026.
A move to 2027 would enable the government to align the implementation of the Free Allocation Review with the introduction of the UK CBAM, ensuring a holistic policy approach to carbon leakage, authorities observe.
The UK ETS Authority will make a final decision and respond to the consultation in due course.
Carrie Bone UK