World Economic Forum recognises Hydnum plant among top decarbonisation projects
Spain’s Hydnum Steel (HS) has been acknowledged by the World Economic Forum’s (WEF) First Movers Coalition as one of the top five most innovative projects worldwide in the steel industry’s race towards a more responsible and efficient steel industry.
This recognition is aligned with key themes emphasised at this year’s WEF meeting, such as sustainability, digitalisation, and the principles of a circular economy, Kallanish notes.
During the summit in Davos, Siemens chief executive Roland Busch highlighted the value of the digitalisation that will be integrated into all phases of the Puertollano’s first “green” steel mill on the Iberian Peninsula. HS and Siemens, partners in the project, have opted for an innovative concept. After passing the technological definition phase, the basis of the project has been established in integrating the use of the Digital Twin in all the production stages, from the design to the complete start-up of the facility.
This innovation will enable real-time optimisation of energy consumption, resources and working conditions for operators, maximising efficiency and significantly reducing environmental impact.
“This will be not just a plant, it is a commitment to the future,” says HS chief executive Eva Maneiro. The ceo emphasises the integration of digitalisation, renewable energy, green hydrogen, and water conservation as transformative elements in redefining steel production standards.
“We will produce steel that will contribute to Europe’s energy independence and create purposeful jobs for our youth. Steel revolutionised the industry, and now it’s time for the industry to revolutionise how steel is produced,” Maneiro adds.
The Puertollano “green” steel mill project is designed to use fossil-free energy throughout the manufacturing process. It will gradually incorporate green hydrogen to substantially reduce CO2 emissions. The plant will have a production capacity of up to 2.6 million tonnes/year of flat steel.
The project is valued at €1.65 billion ($1.72 billion) and will create more than 1,000 direct jobs. The plant, occupying an area of 1.3 million square metres, is expected to be operational in 2026.
Todor Kirkov Bulgaria
Photo: Aceria tradicional. Archivo EFE/Mark Earthy.
Salzgitter supplies lower-emission steel for onshore wind turbines
Salzgitter has announced its subsidiary Enercon, a wind turbine manufacturer, and engineering company SMB Schönebecker Maschinenbau, part of TM Group, will cooperate to produce wind towers with lower-emission steels.
Enercon is a subsidiary of Salzgitter’s plate making unit, Ilsenburger Grobblech.
The steel tower components from the cooperation will be used in early 2025 on an E-138 EP3 wind turbine as part of the Diepholzer Bruch wind farm project in Lower Saxony, Germany. This will make it one of the first onshore wind turbines in Europe – and the first in Germany – to feature a tower made from lower-emissions steel, Salzgitter notes in a statement sent to Kallanish.
Wind turbines with a hybrid tower concept are made completely of steel, the company notes. The bottom is composed of pre-edged steel plates, and the top of conical steel sections. This type of tower offers advantages both for installation and transport, particularly in view of increasing tower heights with even larger tower base diameters, Salzgitter highlights.
In order to reduce greenhouse gas emissions in the production of heavy plates, Ilsenburger Grobblech is using physically CO2-reduced slab from sister company Peiner Träger and another European partner company. The feedstock is produced entirely from scrap in an electric arc furnace.
Christian Koehl Germany
UK industry groups flag government policy risk
Industry association UK Steel has joined other energy-intensive industry trade associations in signing an open letter to the government detailing the risks of certain policy impacts on their respective sectors, Kallanish learns.
The letter to Sarah Jones, Minister of State for the Department for Business and Trade, was spearheaded by Arjan Geveke, director of the Energy Intensive Users Group (EIUG). As well as UK Steel, other signatories includes those from the glass and ceramics sectors, chemicals and refineries, paper and mineral sectors, as well as the GMB Union.
It says while they support the government’s ambitions to boost economic growth and meet the Net Zero target, their ability to invest in decarbonisation technologies is held back by relatively high electricity costs, policy uncertainty and risk of carbon leakage. This has often made investment in the UK uncompetitive.
It notes the UK currently has higher industrial energy costs than in Europe, the US and Asia. This is something UK Steel has flagged repeatedly, calling on the government to increase the rate of compensation for network charges from 60% to 90% to bring UK network charges closer to those in key European countries.
The letter also notes that security of energy supply is critical but the rise of “intermittent technologies”, such as renewables, generating electricity and changes in geo-political circumstances, has increased risk.
Meanwhile, it also says the UK’s Carbon Border Adjustment Mechanism (CBAM) needs significant improvement to make it effective and without loopholes. Its 2027 implementation risks trade barriers and trade diversion with the EU when the bloc’s CBAM starts in 2026.
“The 12-month gap could see detrimental impacts, as higher-carbon products that would have been imported to the EU risk being diverted to the UK instead,” it says.
If the government will not bring CBAM forward to 2026, it asks it to prepare mitigation measures, particularly around trade remedies. It also wants to ensure carbon leakage policy addresses both import and export risks.
The NESO Clean Power 2030 report includes a central estimate for gas price at 101p/therm and an ETS price assumption of £142/tonne, as well as an additional £25/tonne tariff for fossil-generated power to disincentivise exports of unabated power.
“Energy intensive industries will not be able to bear these carbon costs as long as there is no effective UK CBAM without loopholes and there are no commercial decarbonisation technologies available,” the letter states.
It also expresses concern over NESO’s proposed approach to fast-tracking grid connection for Clean Power 2030 which prioritises connecting low carbon power over industrial decarbonisation projects. It calls for industrial decarbonisation to be given the same priority as electricity decarbonisation in terms of network connections.
Carrie Bone UK
Thyssenkrupp starts new electrical steel processing line
Thyssenkrupp Steel says it has enhanced its non-grain oriented electrical steel production after commissioning the new annealing and isolating line at its Bochum plant.
It invested €150 million ($156m) in the line, which has a capacity of 218,000 tonnes/year, depending on the portfolio, Kallanish understands. For strip widths of 700-1,350mm, the line enables production of 0.2mm to 1.0mm thin sheet with particularly homogeneous mechanical and magnetic properties. They are specially designed to meet the requirements of highly efficient motors used primarily in electric vehicles, the firm notes.
The rolling mill upstream of the annealing and isolating line, a double reversing stand, has already been completed. The two new units are set to be complemented by a new electrical steel inspection line and a finishing line for cutting and tailoring. The finishing line is scheduled to go on stream in 2026.
The overall investment at the Bochum site amounts to €300m. In the new plant, the structure of the cold-rolled strip is recrystallised during the annealing process. The appropriate texture can then be set, and the sheet is coated with an insulating layer after the annealing process.
Christian Koehl Germany
Italian coil prices tick higher
Coil prices in Italy are seeing a gradual increase, primarily driven by the low volume of import contracts.
According to sources, hot rolled coil values have hit €590-600/tonne ($615-625/t) base delivered. Both buyers and sellers anticipate transactions will reach €620/t base delivered in February, Kallanish hears.
Hot-dipped galvanised coil is at approximately €670-680/t base ex-works on average. Producers are requesting prices in the range of €700-720/t delivered for the commodity grade.
Current lead times are for March and April; however, some quotes are still indicating the end of February.
Cold rolled coil existing contracts are trailing behind at €650-660/t base delivered. Competitive CRC import offers are exerting downward pressure on prices, reportedly in the range of €640-650/t cfr Italy.
One producer tells Kallanish he is asking for €730/t base delivered for HDG and €720/t for CRC. He says he is achieving these levels but only for small orders.
Both buyers and sellers concur that demand has been limited in January, and consumption continues to underperform as volumes are absent. While raising current prices may contribute to revenue, it is insufficient to achieve profitability.
Compared to pre-Covid, the €150/t spread between HRC and HDG is no longer sufficient. Given elevated energy prices and various high production costs, including HRC safeguard duties that steel importing processors have incurred in recent months, HDG levels should be in the range of €770-780/t delivered. However, the market is currently not approaching this benchmark.
“We are making small steps forward with prices. Increases are slow to happen but compared to the figures we had in December, we have achieved much better values considering that demand is at its lowest levels,” a producer comments.
Current demand from eastern Europe is the most robust within the EU; however, enquiries are also emerging from other locations, including Spain, France, and notably Germany, following a long absence, two sellers agree.
Italian demand appears to be subdued, as buyers acquired significant volumes both in the domestic market and through imports during November.
Natalia Capra France
German rebar prices inch up
German mills are having a tough time achieving the intended rebar price hikes they announced before the Christmas break.
After order books were filled at base prices not exceeding €360/tonne ($375/t), in addition to size extras bringing prices to €625/t delivered, mills had targeted €400/t for new orders.
“That was pretty ambitious,” one buyer finds. “Currently, €380/t is the word, meaning mills achieve a plus of €15-20/t.”
This would be fairly in line with the price hike of €25/t announced recently by ArcelorMittal for long products in Europe (see Kallanish 14 January). While the group owns no rebar plants in Germany, the increase has been heard by German buyers.
“You do hear of those hike attempt by €20-25/t from all sides,” a northern German manager confirms. He, too, gives €380/t as a realistic base price for transactions.
Market activity is low, all players say. Some note the impact of the three-month stoppage of the liquid phase at Riva’s Hennigsdorf works, with staff on short working hours during the period.
“I guess they have sufficient billet in stock to roll for incoming orders,” one manager says. He suggests the stoppage might have the intention to help reduce oversupply. “In any case, the stoppage helps to stabilise the price,” he tells Kallanish.
Another stockholder informs customers that supplies from Riva would in any case be guaranteed from its French mills, but also recommends that orders be placed in time, in anticipation of longer lead times.
Christian Koehl Germany