Italian plate prices decline in stagnating market
Italian heavy plate prices are experiencing a downward trend, attributed to reduced domestic demand and competitive, low-cost import offers, Kallanish notes.
The market is quiet, according to mill and distributor sources. Order intake is persistently low. A mill source reports that sales in September and October registered a slight improvement compared to previous months; however, tight margins and inadequate profit continue to pose significant challenges.
Producers are quoting a lead time of about two weeks. Large customers continue to purchase in limited quantities. A small distributor claims he is buying also in small quantities, primarily from producers’ stocks.
According to one source, the EU imported approximately 180,000 tonnes of plate in October. This level has been the monthly average for the past six months. Local demand continues to be met by low-cost imports from Southeast Asia. However, buyers are reporting that Asian suppliers are now raising prices, meaning values of imported and local material are largely the same.
At present, domestic S275 grade plate is priced in the range of €590-610/tonne ($620-641), while S355 is at €620/t ex-works. Producers are asking for €650/t for 355 grade.
Current booking prices for Asian slab are flat on-month at around $520-530/t cfr Italy.
Natalia Capra France
Tata Nederland to import Norway hydrogen, export CO2
Tata Steel Nederland plans to import zero-emission hydrogen from Norway for use in the steelmaking process and also export captured CO2 to Norway for permanent storage.
The steelmaker has signed an agreement with CO2 and hydrogen transportation firm ECOLOG, along with Norwegian producer Gen2 Energy and the Port of Amsterdam, to explore the import of liquid hydrogen.
The hydrogen would be produced in Norway from hydropower and then cooled to liquid form and shipped in specialised vessels owned by ECOLOG. This is imported into the Port of Amsterdam and converted back into a gaseous state before being delivered to Tata Steel and other companies via a planned pipeline network.
A second agreement has been signed by Tata Steel and ECOLOG, along with Horisont Energi, the Port of Amsterdam, OCAP, the Norwegian bank DNB, and ABN AMRO, to explore a corridor for CO2 exports to Norway.
“In the production of steel, even in the new green steel installations, a small amount of CO2 is still emitted. This quantity of CO2 is only a fraction of what is emitted in the production of coal-based steel,” Tata Steel Nederland says in a note sent to Kallanish.
The CO2 will be captured at Tata Steel and other companies in the region. The cold energy released during the conversion of liquid hydrogen to gas at ECOLOG’s Port of Amsterdam terminal will be used to liquefy the CO2 at the same location. In this form, the CO2 can be transported by ship to Horisont Energi’s import terminal in Norway, where it will be permanently stored. This creates a liquid hydrogen/CO2 corridor, with efficient management of energy.
Adam Smith Poland
Tibnor delivers SSAB Zero Steel for Norway’s First Electric Supply Ships
A Norwegian shipyard will be the first to use SSAB Zero steel for ship-building, Kallanish learns from the Swedish mill group.
SSAB Zero is SSAB’S proprietary brand made from recycled steel and produced with fossil-free electricity and biogas. The Salthammer shipyard in Vestnes has ordered it for two 30-metre electric-powered supply ships.
Norwegian shipping services company AQS Rederi AS has commissioned two Coastern 28eH supply ships from the shipbuilder, which will be used for fish farming tasks. Both vessels feature a newly developed design from Tomra Engineering AS. SSAB subsidiary Tibnor will deliver a total of 300 tonnes of SSAB Zero Salthammer Båtbyggeri in two batches.
The ships will have electric propulsion, powered by 2,000 kWh and 1,600 kWh batteries respectively. The Coastern 28eH is a versatile supply ship with large cranes, efficient deck equipment and a bollard pull of over 25 tonnes.
“It’s great to have Salthammer aboard on our journey toward fossil-free value chains. SSAB Zerois a great material for new generation electric-powered supply ships. We will deliver the steel in 6-15mm thick steel sheets, and the batch for the first ship will leave already in November,” says Svein Johansen, sales director at Tibnor.
Christian Koehl Germany
Market conditions remain weak across steel longs market; no recovery in sight, according to IREPAS outlook
Some sources in the Italian market said that the minimum price for rebar had increased, but other sources reported stability in the market.
Fastmarkets price assessment for steel reinforcing bar (rebar) domestic, exw Italy was €560-580 ($694-615) per tonne on Wednesday, stable since October 23.
According to some sources, the price floor has risen by €10-20 per tonne to €570-580 per tonne, but others said workable prices were still present in the market at lower levels.
“We are still seeing a price of €580 per tonne, but before the end of the month producers believe they will [see higher prices],” one buyer source said, citing stable scrap prices and increasing energy costs.
But other sources reported stability.
“Rebar price offers are around €580 per tonne, but major producers are still offering at €560-570 per tonne so it is difficult to close orders at the new price. Demand is not so good these days. Customers are not in buying mode; they prefer to wait and see,” a second buyer source told Fastmarkets.
Meanwhile, Fastmarkets’ price assessment for steel reinforcing bar (rebar), domestic, delivered, Spain was €580-600 per tonne on Wednesday, stable week on week.
Market conditions were reported to be stable in the Spanish domestic market.
“Everything is very calm. Major mills have not increased prices. In terms of imports, the ports are full and while third countries have increased prices, Spanish customers are not interested. Locally you can still see very low prices and weak activity,” a producer source told Fastmarkets.
Some sources reported bids at lower than €580 per tonne, but these price levels were not considered workable.
Southern European wire rod
Fastmarkets’ price assessment for steel wire rod (mesh quality), domestic, delivered Southern Europe was €600-610 per tonne on Wednesday, narrowing downward by €20 per tonne from €600-630 per tonne the previous week.
IREPAS’ short-range November outlook
Sentiment and outlook remained depressed in the steel longs market across Europe, according to the short-range outlook published by IREPAS on November 8, 2024.
Stringent regulatory challenges, high energy costs, high interest rates, challenging logistics and geopolitical uncertainty continued to drive weak demand, the report said.
A drastic reduction in private and public investment has significantly affected consumption in the construction sector.
“The building industry is experiencing a tsunami with order books as empty as they were 15 years ago. Unfortunately, no light at the end of the tunnel is anticipated in 2025,” the report said.
European ‘green steel’ premiums steady despite economic woes limiting buying interest
But premiums held steady and Fastmarkets’ weekly assessment of the green steel, domestic, flat-rolled, differential to HRC index, exw Northern Europe was again steady at €100-200 ($106-212) per tonne on Thursday, unchanged since September 5.
Premium offers for steel compliant with Scope 1 and 2 (direct) and Scope 3 (indirect) greenhouse gas emissions (GHGs) came in at €200-350 per tonne, according to sources.
But bids for the same material were heard at €80-150 per tonne during the assessment week.
One supplier told Fastmarkets it had rejected a bid at €80 per tonne for 25 tonnes of carbon-neutral (Scope 1 and 2 direct emissions) flat steel because “going below €150 per tonne for such material would not be commercially viable.”
Sources said that, in addition to the high premiums, the lack of public projects in Europe – projects that could insist on green steel procurement – and the lack of stimulus measures to encourage “going green,” were limiting demand for green steel.
“Decarbonization is great and buying steel with reduced carbon content is great; it’s just not affordable when many companies are fighting for survival in a tough market,” a buyer source in Germany told Fastmarkets.
The EU Steel Action plan, published by the European steel industry association Eurofer and European trade union IndustriAll earlier this week, calls for a coordinated approach and makes the case for measures to protect domestic steelmakers during the so-called “green transition.
“Demand for low-CO2 steel should be stimulated through public procurement and in public auctions… A well-recognized labelling system for green steel should be developed by the industry and stakeholders, to be used as a benchmark and reference,” the report says.
In the report, Eurofer and IndustriAll stress the fact that stimulus packages at member-state and EU level are essential to support developments in steelmaking and should include creating and promoting the key markets that will drive demand for green steel made in Europe.
Weak European stainless flats demand persists
The European stainless flat steel market remains under pressure due to persistent overcapacity and slow demand from buyers, sources from both southern and northern Europe tell Kallanish.
A northern European coil buyer however shows a measured sense of optimism about future market conditions. With Asian producers raising their coil prices and the dollar gaining strength, there is likely to be diminished interest in the import market and European buyers are expected to source coils locally in the upcoming weeks.
Sales of stainless scrap remain limited as mills’ slab and nickel pig iron procurement from Asia is limiting scrap purchase volumes. However, collection levels in Europe are low and scrap prices are trending upwards. “I believe coils will stop falling and material for January delivery may increase slightly or remain stable,” the source comments.
Another source reports a resurgence in activity last week and suggests that buyers are likely to return to the market for coil purchases for January. Flat product inventory levels across the EU are currently medium to low. At the same time, there has been a significant decline in downstream consumption.
In northern and western Europe, current stainless CRC values for November delivery are set at €2,550/tonne ($2,681) delivered, while December delivery is at €2,500/t delivered. By comparison, HRC is at approximately €130-140/t lower.
Several service centres in Europe are implementing aggressive sales strategies and are prepared to discount material to secure orders. This is particularly true in Italy, where subdued activity is maintaining low coil derivative prices, especially for tubes and sheets. Sheet prices in the country range from €2,580-2,650/t ex-works, resulting in compressed margins. Several service centres are currently experiencing financial losses.
Two sources in Italy, a re-roller and a service centre, anticipate an uptick in activity as buyers are likely to restock in the coming days, in preparation for year-end demand. Italian CRC prices are presently below the European average, influenced by low consumption levels, prevailing uncertainty, and a highly competitive market environment.
Italian stainless CRC stands at approximately €2,400-2,450/t delivered, whereas HRC is priced at €2,200-2,250/t delivered. The delivered price for HRC with rough edge is currently at below €2,200/t, sources suggest.
Natalia Capra France