German flood causes inventory damage

The damage reports along the Ruhr, which came out of its bed after heavy rains on 15 July, so far have mainly concerned disruptions to transportways like rail, roads and rivers. Production plants have been hit, too, though only individually, but in some cases considerably.

One mill group operates two consignation storehouses for coils in Hagen, which both have been flooded, “and one is still not accessible,” a spokesman tells Kallanish. While the dimension of the damage cannot be assessed yet, he suggests that it might not be all that bad.

“Lawyers might advise to scrap all coils that show damage. But then, all of them are oiled, and damage seen on the exterior may not have creeped in further, so that slitting off the edges might keep them workable,” he says. Ironically, they may then have the width produced by thyssenkrupp Hohenlimburg, the one mill specialising in medium-wide strip – located in Hagen, and likely affected to a high degree.

It cannot be assessed yet if this trick is all that easy, the spokesman says. Slitters need some space to be able to impose the pressure it takes to cut through 3 mm or more, so more edge may have to be cut off than is actually harmed.

Christian Koehl Germany

Floods hit German long products supply chain

The devastation caused by heavy rains along the eastern Ruhr are mainly impairing the supply chain of coil products typical for the region, with thyssenkrupp and at least two Hagen-based cold-rollers declaring force majeure.

Hagen is also home to one primary steelworks of special bar qualities maker Deutsche Edelstahlwerke (DEW). The site “was massively hit by the heavy weather, and was completely under water,” DEW tells Kallanish upon request.

On Friday, the company was still busy clearing water from large parts of the works and was taking stock of the production facilities that were accessible. “We plan to resume operation at least for some sections as soon as possible,” a spokeswoman says.

DEW’s works in nearby Witten was stopped temporarily on 15 July, but could resume production immediately after the rain. The plants in Siegen and Krefeld were able to continue operation. Still, all plants are affected by impairments in transport, the spokeswoman notes.

Also in Hagen, a plant of Georgsmarienhütte Gruppe, whose products address similar customers as DEW, was hit particularly hard by the rains that day. Schmiedag, a forge making parts for big engines, trains and special vehicles, was flooded completely; 17 employees fled to the roof and were rescued by the fire department only hours later.

A long products mill of ArcelorMittal in Duisburg did not suffer immediate damage, but faces complications with logistics, like all other works in the region do. While the company did not give details, it could mean considerable reduction in output, as raw materials like scrap cannot be transported as normal to the mills. This was the case further down the Rhine at rebar mill Badische Stahlwerke (see Kallanish 23 July).

Christian Koehl Germany

Salzgitter adds tailored blanks equipment

Salzgitter has started operating a new stamping line for tailored blanks, Kallanish learns from the German steelmaker.

The addition required the construction of a new hall, which was carried out during the pandemic, the company underlines. The new facility was supplied by Schuler and can work coil of up to 35 tonnes in thicknesses of 0.5-3mm. It can carry out 70 lifts per minute with a cutting power of 800 tonnes, Salzgitter details.

The new line can handle qualities of the highest tensile strength, according to the managing director of tailored blanks unit Salzgitter Europlatinen (SZEP), André Körff. He adds that the unit will especially benefit from the construction of the group’s galvanizing line No.3, which is to start operation next year.

Christian Koehl Germany

Indian government lists six state-owned steelmakers for sale

The Indian government has listed six state-run steel plants, including Rashtriya Ispat Nigam Limited (RINL), for sale, according to the finance ministry.

The ministry confirms that no state steel plant has been sold during the last five years. The disinvestment of central public sector enterprises (CPSEs), including steel plants, was guided by the new public sector enterprise policy for Atmanirbhar Bharat (Self-reliant India), Kallanish notes.

“As per the new policy, the existing PSEs were broadly classified as strategic and non-strategic sectors,” says union minister of state for finance Bhagwat Kishanrao Karad. “In the strategic sector, the existing PSEs at the holding company level would be retained under government control. In the non-strategic sector, including steel plants, the PSEs would be considered either for privatisation or closure”.

RINL, Neelachal Ispat Nigam Limited, NMDC Integrated Steel Plant, Alloy Steel Plant, Visvesvaraya Iron & Steel Plant and Salem Steel Plant are the steel companies earmarked for sale. This has been approved by the federal cabinet of ministers.

RINL, a 6.3 million tonnes/year capacity integrated state-run steel plant, posted a turnover of INR 5,223 crore ($701.11 million) in the fiscal first quarter ended 30 June.

Sayed Aameer India

Shortage, minimal imports lift European stainless coil prices

European stainless steel cold and hot rolled coil, sheet and tube prices are increasing again this month due to persistent shortages, market participants tell Kallanish.

European mills are quoting CRC for January and February 2022 delivery at €3,300-3,550/tonne ($3,890-4,185) delivered, depending on material quality and volumes. HRC is offered at €3,100-3,300/t delivered. Buyers are not negotiating prices, instead focusing negotiations on delivery. The higher point of the range is usually paid by service centres for high grades.

The short supply situation is not helped by imports being uncompetitive, particularly Chinese CRC material that is proposed at €3,700-3,800/t cfr southern European port. As a consequence, European stainless CRC is particularly tight, sources say.

The worst has yet to come in September and October, as little material is being bought on the import market. Buying coils from countries outside the EU has become a challenge also because of the shortage of vessels. Freight companies prefer shorter voyages where they can charge and leave in one day.

Meanwhile, distributors and service centres across Europe are also increasing prices for their products, in line with coils values. Sources report delivery delays caused by European mills’ long lead times, together with relatively low stocks in western European countries, Kallanish notes.

Natalia Capra France