EU HRC market stable; producers lack unified pricing approach

Domestic prices for hot-rolled coil in Europe have been stable on Aug. 7 because of a seasonal market slowdown.

Steelmakers, in the meantime, lacked a unified approach to pricing as some continued to give discounts to sell volumes and others have made unsuccessful attempts to raise offers to Eur680-700/mt delivered, sources said.

“Customers asking [for a] lower price in EU,” a distributor said. “Generally, in prices, there is a rollover situation—no real movement and no real consumption.”

“It is an interesting market at the moment as some mills are asking for higher prices, but I think it is most likely to stop the price decline,” a trader said.

Platts assessed domestic HRC prices in Northwest Europe at Eur640/mt ex-works Ruhr Aug. 7, unchanged.

Market participants estimated tradable values at Eur620-650/mt EXW Ruhr and at Eur650/mt delivered Germany.

A trader reported a deal at Eur580/mt EXW Ruhr, but it was excluded from the assessment as other market participants did not confirm the transaction.

Platts assessed domestic HRC prices in South Europe also unchanged at Eur635/mt EXW Italy Aug. 7.

Author Maria Tanatar

European HRC market quiet amid holidays stoppages

Prices in the hot-rolled coil market in Europe were flat on Monday August 7 due to near-zero trading as a result of the seasonal slowdown, sources told Fastmarkets.

Fastmarkets’ daily steel hot-rolled coil index domestic, exw Northern Europe was calculated at €645.83 ($710.69) per tonne on Monday, unchanged from Friday August 4.

Most mills have withdrawn from the market as is typical for this time of year.

During the week to Friday August 4, producers in Northern Europe were offering November-rolling HRC at around €700 per tonne EXW.

Meanwhile, buyers’ estimates of the tradable level were heard at €630-650 per tonne EXW on Friday.

Activity was essentially non-existent across the European HRC market. Some sources were optimistic that demand and prices could pick up in September, Fastmarkets heard.

Fastmarkets’ daily steel hot-rolled coil index domestic, exw Italy was calculated at €636.25 per tonne on Monday, unchanged from Friday.

The Italian market was in holiday mode and most mills and buyers were inactive.

Buyers’ estimates for workable prices for September-October-delivery HRC were reported at €630-640 per tonne ex-works during the week to August 5.

No fresh import offers were reported.

Published by: India-Inés Levy

Klöckner sees increasing low-emission steel products acceptance

Steels that are certified as low-carbon-emission products have so far been demanded mainly in Europe and by big users, but are gaining ground in other segments and regions, Klöckner & Co observes.

When asked about buyers’ acceptance of CO2-reduced product premiums, chief executive Guido Kerkhoff said during a recent conference that it was “good in principle”, but varied by segment and region. Comparing the distribution group’s two main markets, he explained the level of acceptance in Europe is better than in the USA, “but they [US buyers] are catching up”.

Also, “green” steel is primarily a domain of the big user groups like the automotive industry, while small and medium-sized customers are content with receiving “some kind of certificate”, he added. However, “inquiries are increasing and interest is becoming more profound,” Kallanish heard him say during the conference.

“The wind is changing in the USA as well, so in the premium segment you will not be able any more to offer only grey and black standard products,” he observed.

He did not elaborate on the short-term future, when more costly CO2-reduced material in Europe could face a hard time amid continued sluggish demand. In a different context, he stated that “on the domestic market, we need to prepare for rough competition for low volumes”.

Last year, Klöckner introduced its own low-CO2 steel brand under the name of Nexigen. In spring, it launched the Nexigen PCF Algorithm, which can be used to determine the Product Carbon Footprint (PCF) for almost all its products. More recently, it presented a tracking solution that allows customers to view their emissions history for products purchased from the company.

Christian Koehl Germany

Italian stainless coil orders pick up

Italian stainless steel coil prices are increasing after values reached rock bottom in July. European producers are hiking by approximately €100/tonne ($109) and contracted prices are seen rising accordingly in September for hot and cold rolled coil for October delivery, sources tell Kallanish.

Much of the market is now on holiday in Italy and in other European countries. Italian mills’ order intake improved in July and the first days of August. This follows a long period of quiet activity and contracting orders. Local service centres have bought some volumes for July, August and September delivery, while some deliveries are being delayed due to the August production stoppages.

At present, asking prices for October-delivery stainless CRC in Italy are at €2,300-2,350/t delivered on average, and some €150/t less for HRC. CRC with trimmed edges is transacting at about €2,200/t delivered, with HRC at about €2,000-2,050/t delivered, sources suggest.

Two Italian buyers say prices will have to increase for coils and derivatives in September but volumes will remain limited. Service centres’ clients are reported to have some work, but their activity remains low. Purchases in September should surge for October deliveries, owing to market seasonality. At present, however, distributors are reporting a low level of orders and a continuing wait-and-see attitude.

Natalia Capra France

Summer demand slump downs Turkey’s coated steel prices

Turkey’s coated flat steel market experienced reduced activity on Monday, with prices slightly down due to sluggish demand both domestically and in export markets amid the ongoing holiday season, market participants inform Kallanish.

Availability of September-shipment coated steel from domestic mills exerted some pressure on prices. However, this situation was anticipated and therefore the impact on prices was limited.

On exports, some producers expected increased demand for Turkey-origin coated steel from Ukraine, whose buyers will use this to substitute for China-origin supply after Ukraine imposed a definitive anti-dumping duty on Chinese product effective 12 August.

Turkish domestic prices

Product Price, ex-works, cash W-o-w change, $/t
CRC 1 mm $760-800/t  -20/+10
HDG 0.50mm Z60 $830-855/t  0/-15
HDG 0.50mm Z100 $830-875/t  0/-15
PPGI 0.50mm Ral 9002 5+15 $925-980/t  0/-10
HDG 2.00mm Z60 $760-800/t  -10-15

Source: Kallanish market survey

Elina Virchenko UAE

Klöckner & Co: Erwerb von National Material of Mexico abgeschlossen

Nach der Genehmigung der zuständigen Kartellbehörden hat Klöckner & Co den Erwerb von National Material of Mexico („NMM“) vollzogen. NMM ist ein führendes unabhängiges Service-Center-Unternehmen sowie Anbieter von Werkstoffen für die Automobilindustrie und andere industrielle Endmärkte in Nordamerika und mit zehn Standorten in Mexiko vertreten. Durchgeführt wurde die im Dezember 2022 vereinbarte Transaktion über die US-Tochtergesellschaft Kloeckner Metals Corporation („KMC“).

Durch den Erwerb von NMM kann KMC seine Präsenz in Mexiko deutlich ausbauen und seine Position dort stärken, wo die bedeutendsten Automobil- und Industriekunden ansässig sind. Da sich die beiden Unternehmen bei der regionalen Abdeckung, den Kundensegmenten und mit Blick auf die starke Position von NMM im Automobilsektor hervorragend ergänzen, bringt der Zusammenschluss Vorteile für beide Unternehmen.

Zukauf gilt als „ideale Ergänzung“

Guido Kerkhoff, Vorstandsvorsitzender der Klöckner & Co SE: „Der Abschluss dieser Transaktion stellt einen wichtigen Meilenstein auf dem Weg zur Umsetzung unserer Unternehmensstrategie ‚Klöckner & Co 2025: Leveraging Strengths‘ dar. Dadurch werden wir unsere führende Position in der Stahl- und Metalldistribution sowie im Stahl- Service-Geschäft in Nordamerika langfristig weiter stärken. Ab sofort profitieren unsere Kunden von einem noch größeren Produkt- und Service-Portfolio.“

John Ganem, CEO von Kloeckner Metals Corporation: „In National Material of Mexico haben wir die ideale Ergänzung gefunden, um die Kloeckner Metals Corporation erfolgreich in die Zukunft zu führen. Wir freuen uns auf die Zusammenarbeit mit dem starken Team von National Material of Mexico und sind uns sicher, dass wir unsere Erfolgsgeschichte auf dem nordamerikanischen Markt gemeinsam fortschreiben werden.“

Das kombinierte Unternehmen deckt mit 56 Standorten und rund 2.600 Beschäftigten alle relevanten Regionen der USA und Mexikos auf breiter Basis ab. Künftig will das Unternehmen seine Marktposition weiter ausbauen, sein Produktangebot erweitern und die bestehenden Kundenbeziehungen durch Cross-Selling ausweiten. Zudem erhalten die Kunden von KMC einen besseren Zugang zu Elektroband, um die steigenden Investitionen in erneuerbare Energien und die zunehmende Nachfrage nach E-Mobilität in Nordamerika zu unterstützen. NMM soll Schritt für Schritt unter der Marke Kloeckner Metals positioniert werden. Das überaus erfahrene Managementteam von NMM mit Carl Grobien und Steve Badyna wird dem Unternehmen erhalten bleiben und das Wachstum weiter vorantreiben.

Weitere Meldungen aus der Rubrik Markt finden Sie > hier.

Source: stahleisen.de

Pader-Stahl wird Teil der EHG Gruppe aus Österreich

Die österreichische EHG Gruppe, ein führendes Stahl- und Metallhandelsunternehmen in Europa, übernimmt den Stahlhändler Pader-Stahl aus Paderborn. Mit diesem Schritt baut EHG die Präsenz in Deutschland und insbesondere im Bundesland Nordrhein-Westfalen aus.

Die EHG Gruppe expandiert weiter in Nordrhein-Westfalen und übernimmt über ihre Tochtergesellschaft in Bad Oeynhausen das Unternehmen Pader-Stahl Handels-GmbH mit Sitz in Paderborn. Die Übernahme erfolgt in zwei Etappen: 50% rückwirkend zum 01.01.2023, die restlichen 50% per 31.12.2026.

„Mit der schrittweisen Übernahme des Unternehmens Pader-Stahl bauen wir unsere Präsenz in Nordrhein-Westfalen aus. Wir sind dadurch in der Lage, unsere Kunden in unserer Region noch schneller und besser zu beliefern. Zudem können wir viele Synergien – vor allem im Verbund mit EHG in Bad Oeynhausen – nutzen“, betont Detlef Schwer, Geschäftsführer von EHG Stahl.Metall Bad Oeynhausen.

Stahlhändler Pader-Stahl verfügt über zwei Standorte

Pader-Stahl ist ein lagerhaltender Stahlhändler und verfügt über ein breites Portfolio an Stahl und Metall. Die gehandelten Produkte werden auch bearbeitet, vor allem gesägt. „Wir freuen uns, mit Pader-Stahl ein kerngesundes und vielversprechendes Unternehmen in der EHG Gruppe begrüßen zu können. Es ist in den letzten Jahren stark gewachsen und kann diesen Kurs nunmehr mit unserer Kraft im Rücken weiter fortsetzen“, so die beiden Geschäftsführer der EHG Gruppe Markus Lutz und Stefan Girardi.

Pader-Stahl hat derzeit rund 40 Mitarbeitende an zwei Standorten in Paderborn beschäftigt. Das Unternehmen kann durch die Zugehörigkeit zur EHG Gruppe das eigene Produktsortiment massiv ausbauen und von 60 Jahren Erfahrung im Stahl- und Metallhandel profitieren. „Wir freuen uns sehr, von nun an Teil der EHG Familie zu sein. Dadurch können wir auf jahrzehntelanges Know-how zurückgreifen und unser Sortiment erweitern, wovon schlussendlich unsere Kunden profitieren werden“, sagen die beiden Geschäftsführer von Pader-Stahl Helmut Schwarzkopf und Michael Agethen.

Pader-Stahl wird bis zur vollständigen Übernahme von der bestehenden Geschäftsführung unter der Nutzung von operativen Synergien selbständig weitergeführt. Weitere Integrationsschritte erfolgen erst nach der vollständigen Übernahme im Jahr 2027. Strategisch will die EHG Gruppe dabei langfristig auf den Standort Paderborn setzen.

Weitere Meldungen aus der Rubrik Markt finden Sie > hier.
Foto: EHG Gruppe
Source: stahleisen.de

European HRC moves sideways amid summer slowdown

The European hot-rolled coil market traded sideways Aug. 4 as most players were absent from the spot market.

Sources said some mills were hinting at future price rises following the summer when restocking activities are expected, but that current trading was limited.

“Mills and end-users are keeping a low profile at the moment,” said a Benelux distributor.

“Our stock is sufficient including for September. Not sure where prices will go, so no reason to buy now,” the distributor added.

An Italian mill offer for September was heard at Eur700/mt EXW Italy minimum Aug. 4 but no business was reported at that level.

Sources said some mills were slowly positioning themselves for expected restocking activity after August and were thinking about increasing offer prices.

However, some sources said this would rather be to maintain current price levels amid a mixed view on sustained price increases in Q4.

The European market is expected to remain quiet in August amid maintenance works and summer stoppages at suppliers.

Platts daily HRC assessments in Italy and in the Ruhr region were assessed unchanged Aug. 4 at Eur635/mt EXW Italy and Eur640/mt EXW Ruhr, respectively.

Platts is part of S&P Global Commodity Insights.

Author Laura Varriale

European HRC market stays quiet while talks of Q4 quota import levels increase

The European hot-rolled coil market remained quiet amid the summer lull while market chatter surrounded increasingly full import quotas which have resulted in material being kept on hold to be cleared at ports, sources said Aug 3.

Sources expect that particularly Italian ports have at least 300,000 mt of HRC awaiting clearance at ports for the quota period starting Oct.1.

According to the European Commission, the “other country” quota for the current quota period (July 1 to Sept. 30) had been exhausted July 25 while the current quota balance for South Korea was shown as critical Aug. 3 with 92.03% filled.

“There will be a lot of material for the end of the year [in Europe],” said an Italian service center.

“Oct. 1 could see big congestions at ports,” said the source, adding that most importers are keeping the material on hold for the next quota period to avoid a 25% duty that applies when quotas have been exhausted. Import offers into Italy were heard at Eur600-605/mt CIF Italy.

Domestic HRC prices in Italy and Northwestern Europe saw no change. One mill source said prices ex-mill would be Eur670-680/mt ex-works Ruhr, while another distributor said prices from Central-Eastern Europe were at Eur620-630/mt EXW, although buying remained limited.

An Italian mill was heard to offer at Eur660-680/mt EXW for prompt.

The daily Platts assessments for HRC EXW Ruhr and HRC EXW Italy remained unchanged Aug. 3 at Eur640/mt and Eur635/mt, respectively.

Platts is part of S&P Global Commodity Insights.

Author Laura Varriale, Maria Tanatar

ISTA to meet UK govt on Tata Steel import concerns

UK steel trade body International Steel Trade Association (ISTA) will be meeting the government to discuss the issue of UK steelmaker Tata Steel importing significant volumes of Indian HRC to supply its own production, filling up the country’s import quotas.

ISTA had called for an immediate solution to make it possible for UK buyers to import Indian material. Sources close to the matter told S&P Global Commodity Insights Aug. 3 that the UK government agreed to meet the trade body in September to discuss the matter.

In the July 27 letter seen by S&P Global that was sent to members late-Aug. 3, ISTA claims that the repeated steel orders by Tata Steel UK could be seen as “an unfairly attempt to manipulate the free market.”

“Like all UK steel producers, Tata benefits from the protection of the Safeguard Measures quota system, but it cannot be considered as fair trading practice to then take up that quota thus preventing importers from supplying their own customers,” the letter said.

“Steel already booked and currently on the water to the UK, destined for independent service centres and manufacturing, will not be able to be customs cleared and utilised – a fact Tata Steel know only too well,” ISTA said in the letter, warning that the lack of import opportunities would have a “devastating and immediate effect on steel manufacturing.”

ISTA suggested several options to resolve the matter: to either create a new import category code for Tata Steel’s own domestic use or changing the quota to be utilized for its intended imports and end-user customers. Another possibility would be to increase the quota volume for the other country category, under which Indian material falls.

 

Tata Steel to receive new order in Sep

 

Tata Steel has a 22,000 mt order of Indian HRC arriving in September for clearance under the quota period starting Oct. 1. The quota is expected to exceed immediately, sources said. The company is also said to have received a previous order of Indian material in June to support production of its Port Talbot works while it faced production problems.

Although it is understood that Tata has not received material in the current quota period July 1 to Sept. 30, the quota nevertheless is likely to be exhausted soon. There are 1,105 mt left under the other country quota as of Aug. 3, which means it is considered “critical” where a 25% duty deposit has to be paid. The opening balance was 22,837 mt.

Tata Steel UK declined to make an immediate comment on the matter when contacted Aug. 3 after usual office hours.

In an earlier statement July 27 to S&P Global, a spokesperson had said: “Tata Steel, like most other steelmakers, sometimes complements its own production with supplies from other sources to balance its utilisation of downstream businesses.”

The Platts weekly assessment for UK HRC was at GBP615/mt DDP West Midlands Aug 3, stable week on week, according to data from S&P Global.

Author Laura Varriale