ricardo

Steel product sales in the German distribution and stockholding system in March totaled 817,467 mt, down 17.8% year on year and down 3.1% month on month, according to data from steel stockholders’ association BDS released April 22.

Monthly sales of long products totaled 254,763 mt, down 7.6% year on year, but up 5.8% month on month, marking increased demand in the construction sectors on seasonal effect.

March sales of flats products stood at 496,756 mt, down by 23.1% year on year and 6.8% month on month confirming the weak economy data.

Other steel product sales totaled 65,948 mt, down 8.8% compared with the same period a year ago and 6.4% lower on the month.

Stocks steady on year

Total steel stocks in Germany in March were mostly stable compared with a year ago at 1.979 million mt, up 0.2% year on year, but down 1.3% month on month, according to the BDS data.

Stocks for the flat steel products were at 1.29 million mt in March, up 8.9% year on year and down by 0.7% month on month.

Stocks of steel long products in March fell 14.1% year on year and 2.6% month on month to 646,239 mt.

Others stocks stood at 44,353 mt in March, down 0.4% from February, but up 7.9% compared with March 2023.

German economic sentiment

Germany’s manufacturing sector ended the year’s opening quarter still mired in contraction territory, the latest HCOB PMI survey conducted by S&P Global showed.

HCOB Germany Manufacturing PMI was at 41.9 point in March compared with February’s 42.5, marking a five-month low.

March’s survey showed evidence of spare capacity at factories as goods producers reported a rapid decline in backlogs of work and further job losses. Although the rate of decline in buying levels eased since February, it remained quicker than that of output as companies looked to reduce stocks of purchases. The latest decline in pre-production inventories, which was the 14th in as many months, was in fact the sharpest seen since October last year.

Germany’s service sector ended the first quarter on more stable footing, with companies growing increasingly optimistic about the outlook, according to the latest HCOB PMI survey compiled by S&P Global.

The HCOB Germany Services PMI Business Activity Index came in at 50.1 in March, up from 48.3 in February and registering broadly in line with — but crucially just above the 50.0 point threshold. The result served to end a five-month sequence of contraction in activity, registering the six-month high level.

During the month of March, N.EU HRC prices moved from Eur715/mt March 1 to Eur665/mt March 28, according to Platts assessment. Platts assessed hot-rolled coil in Northwest Europe stable on the day at Eur625/mt ($666.56/mt) ex-works Ruhr April 19.

 

Carbon markets are growing even more complex and becoming closely intertwined with geopolitics, especially with policies such as the EU’s Emissions Trading System 2 and its Carbon Border Adjustment Mechanism, the president of the International Emissions Trading Association said.

Speaking to S&P Global Commodity Insights, Dirk Forrister said many countries are looking to form new alliances in the quest for carbon neutrality, which is reshaping the politics of energy and climate.

“Getting to net zero can be really expensive unless you work with others, and it is not a smooth easy journey it is going to be one where you need strong reliable partners and that’s what the market architecture can enable, but it takes political agreement to make that happen,” he said in an interview.

Forrister said the introduction of EU’s CBAM, which imposes a tax on imports of carbon-intensive products like iron and steel and fertilizers, was already pushing many industries, companies and countries to innovate and adapt.

While ETS 2, which will cover the building and road transport sectors, and builds on EU’s current cap-and-trade compliance program, is also set to be a “massive undertaking,” he added.

On the sidelines of the European Climate Summit in Florence, Forrister discussed some of the key developments that global carbon markets are currently facing. Below is a transcript of his comments, edited for length and clarity.

S&P GLOBAL: What were some of your key takeaways from the European Climate Summit that took place April 16-18?

FORRISTER: I think there’s a general sense of enthusiasm from market participants that major changes are in the works and that the need for carbon markets is rising with the interest in meeting the goals of the Paris Agreement. With the European focus on it, it is so much more complex now than it was 10 years ago.

All of a sudden, you’re not just thinking about how tight the cap is getting and the linear reduction factor that’s driving emissions down in Europe. But you’re also looking at a whole second ETS covering billings and transport that’s as big as the first ETS, that’s a massive undertaking.

Then you’re talking about CBAM because the reality is with trade exposed industries there aren’t going to be enough allowances to solve the trade exposure problems so you’re going to have to innovate and come up with something.

The impact [from CBAM] is going to be felt long into the future but I think for the market, it is adding complexity, with many more dynamics to consider.

S&P GLOBAL: You have previously said it was inevitable that geopolitics would shape the carbon markets, have there been any developments in your outlook?

FORRISTER: Europe’s acceleration of its energy transition due to the war in Ukraine and the changes in fuel supply to Europe — the imports of LNG and efforts to drive efficiency that are probably the most dramatic examples of where geopolitics has affected the market.

But as we go forward there is a potential for new alliances to form. When I think about who gets serious about getting to net zero, I think about who are going to be your traveling partners on that journey. And that is how geopolitics is starting to come into more focus.

[For example], who will Japan actually team up with, through its Joint Crediting Mechanism to broaden its reach?

Right now, there is tremendous interest in Africa being a supplier [of carbon credits] into the global market — they have lots of mitigation potential, but some areas do not have a lot of money.

China’s Belt and Road Initiative touches a number of those countries and right now there’s not an offer coming from the EU or the UK or Canada on how to get market access to their programs if you’re a developing country, but China might be an interesting partner. I don’t know if that materializes or not, but it is an example of how at some point things are going to start to click.

Getting to net zero can be really expensive unless you work with others, and it is not a smooth easy journey it is going to be one where you need strong reliable partners and that’s what the market architecture can enable, but it takes political agreement to make that happen.

S&P GLOBAL: The IETA guidelines clearly define aligning carbon markets with the Paris Agreement. What was the rationale for this?

FORRISTER: The Paris Agreement is fundamental to how countries are going to deal with climate change. You can’t just take the piece you like. You have to take the agreement as a whole. It is not about getting to the zero alone it is about getting to net zero together. The word ‘net’ is incredibly important because that’s how we work together across borders and sectors.

There are a few jurisdictions that will be able to get to net zero, but most countries are going to need cooperation to get there because they don’t have the financial resources to deliver. In a way it’s a match made in heaven, the opportunities side and the challenge side should come together.

Maria sultana Choudhury | Eklavya Gupte

German steel producer Salzgitter has signed a pre-contract with Uniper for the supply and purchase of green hydrogen for its Salcos low-carbon steelmaking program, the companies said April 23.

Uniper will supply up to 20,000 mt/year from its 200-MW Wilhelmshaven electrolyzer from 2028 to the direct reduction iron plant Salzgitter is constructing.

The electrolyzer is due to be commissioned in 2028 on the site of a former coal plant, with volumes dependent on availability of the German core hydrogen network and a specific pipeline to the steel plant, Uniper said in a statement.

“A pipeline connection from Wilhelmshaven to Salzgitter is absolutely essential and must be established as quickly as possible,” Uniper said.

Uniper plans to expand Wilhelmshaven electrolysis capacity to 1 GW, producing 100,000 mt/year.

The company is also developing a green ammonia import terminal at the site with capacity of 2.6 million mt/year of ammonia, which can be cracked into at least 300,000 mt/year of hydrogen, to be fed into the planned German hydrogen pipeline network.

A final investment decision on the terminal is expected in the second half of the decade, a Uniper spokesperson told S&P Global Commodity Insights by email.

The preliminary agreement between Uniper and Salzgitter includes a technical and commercial framework for hydrogen supply.

The agreement is the first step in securing hydrogen supply for Salzgitter’s Salcos project, which will require up to 150,000 mt/year of hydrogen in its first stage.

In a first phase from 2026, Salzgitter will commission a direct reduction plant, an electric arc furnace, and the 100-MW electrolysis plant.

The DRI unit will have a production capacity of over 2 million mt/year of direct reduced iron, while the EAF will produce 1.9 million mt/year of steel, according to Salzgitter Flachstahl and engineering company Primetal, which will build the EAF.

It aims to convert its operations to “virtually CO2-free steel production” by the end of 2033.

The first stage of Salcos is backed by subsidies from Germany’s federal government and the state of Lower Saxony, as well as by the company’s own funds.

The agreement follows hydrogen supply agreements from other German steel producers.

German steel producer Stahl-Holding-Saar launched a tender in March to buy up to 50,000 mt of locally produced renewable hydrogen for its Dillinger and Saarstahl plants in Saarland.

And in February, Thyssenkrupp issued a tender seeking up to 151,000 mt/year of renewable and low-carbon hydrogen under 10-year contracts from 2028, for pipeline delivery to its Duisburg steelworks.

Platts, part of S&P Global Commodity Insights, assessed the cost of green hydrogen production via alkaline electrolysis, backed by renewable power purchase agreements, at Eur7.10/kg ($7.6/kg) on April 22, up from Eur6.11/kg at the start of the month.

The assessment reflects one possible pathway for producing EU Renewable Energy Directive-compliant green hydrogen.

Platts assessed Northwest European hot-rolled carbon-accounted coil stable on the day at Eur745/mt ($793/mt) ex-works Ruhr on April 22, a Eur120/mt premium to conventional supplies. The assessment was calculated in line with the sum of Platts daily carbon-accounted steel premium (CASP) assessment and Platts daily hot-rolled coil price assessment in Northwest Europe.

James Burgess

Global crude steel production totaled 161.2 million mt in March, down 4.3% year on year, according to World Steel Association data published April 23.

However, March global production was 7.9% higher than the previous month and at the highest monthly level since May 2023.

The March total brought output for the first quarter to 469.1 million mt, edging up 0.5% year on year, the data showed.

China, the largest steelmaker, produced 88.3 million mt in March, down 7.8% from a year ago but up 8.7% month on month, making up 55% of total global crude steel output.

China’s Q1 volume was also 1.9% lower year on year to 256.6 million mt.

Platts, part of S&P Global Commodity Insights, assessed the SS400 HRC 3 mm thick grade of coil at $525/mt FOB China April 23, down 7.6% since the start of 2024.

 

Production in India climbs

The world’s second-largest steel producer, India, saw steel output rise 7.8% on the year and up 6.9% on the month in March to 12.7 million mt. This brought Q1 volumes to 37.3 million mt, up 9.7% on the year.

Japan’s March production totaled 7.2 million mt, down 3.9% on the year, but up 2.9% from February, with Q1 output down 0.8% on the year to 21.5 million mt, the data showed.

May output from the US was steady year on year at 6.9 million mt but climbed 6.5% on the month. The US’ Q1 output was down 1.6% to 19.9 million mt.

Russia was estimated to have produced 6.6 million mt in March, up 0.8% year on year and 10.6% higher than February’s level. The estimated Q1 total was 18.7 million mt, down 0.2% on the year.

South Korea produced 5.3 million mt of crude steel in March, down 9.5% year on year, but up 0.8% month on month, with the Q1 volume down 2.5% on the year to 16.2 million mt.

 

EU production down 4.3% on year

The European Union produced 11.6 million mt of crude steel in March, down by 4.3% year on year but up 8.25% on the month.

Germany, Europe’s largest steel producer, saw its crude steel production jump 8.4% year on year in March to 3.5 million mt, which was also 12.3% higher on the month. This brought Q1 volumes to 9.7 million mt, up 6% from Q1 2023. Inventory cyclical effects may also have contributed to this positive development.

In Germany, steel production by blast furnace rose 5.1% on the year to 2.42 million mt, while steal made via electric arc furnaces increased 16.4% to 1.09 million mt, according to data from German steel federation WV Stahl.

During the month of March, N.EU HRC prices moved from Eur715/mt March 1 to Eur665/mt March 28, according to Platts’ assessment.

Europe’s second-largest steel producer, Italy, saw steel production fall 12.6% year on year to 1.91 million mt, although volume rose 5% on the month. The Q1 total was 5.4 million mt, down 4.4% on the year.

In March, flat steel products in Italy dropped 14.2% on the year to 794,000 mt, as the country’s second-largest flat steelmaker, Acciaierie d’Italia, was working at its lowest-ever historical level. Italian long steel production also fell 11% to 1.25 million mt year on year, according to Italian steel association Federacciai’s latest report.

Turkey produced 3.2 million mt in March, rising 18% on the year and 3.8% higher than February’s volume, according to worldsteel. Q1 production was also up 28.4% on the year to 9.5 million mt.

Brazil produced 2.8 million mt of steel in March, up 5.6% year on year and 0.3% higher on the month.

Iran’s output rose 2% on the year and 23.9% on the month to 2.8 million mt.

Overall pig iron production from 38 countries was 108.3 million mt in March, down 4.8% year on year but increasing 6.7% from February, the data showed.

Direct reduced iron produced worldwide in March amounted to 9.6 million mt, falling 4.8% year on year and up 9.5% from February, according to worldsteel.

Jacqueline Holman | Annalisa Villa

spglobal.com

thyssenkrupp appointed Nadja Håkansson as Chief Executive Officer of thyssenkrupp Uhde.

Nadja Håkansson has held various management positions at Siemens and Siemens Energy and brings more than 18 years of national and international experience in the areas of supply chain management, operations, sales and corporate management.

Most recently, as Senior Vice President Region Africa for Siemens Energy, she was responsible for the company’s overall portfolio development in the African market.

“thyssenkrupp Uhde has significant potential for shaping the green transformation in our industry, and I am honored to lead this prestigious company as we embark on this exciting journey together,”

“I am so excited to begin a new journey with thyssenkrupp Uhde on May 1, and lead the organization in achieving a significant impact in the green transformation and industrial decarbonization 🍀💫, wrote Håkansson.

I am looking forward to working with the thyssenkrupp Uhde team to shape a new chapter for the company, for our customers and for society!”

stainless-steel-world.net

ArcelorMittal Construction plant ein neues Werk für Bauprodukte in der Ukraine zu errichten, um den Wiederaufbau des Landes während und nach dem Krieg zu unterstützen. Die Investition soll in der Region Kiew auch 100 neue Arbeitsplätze schaffen.

Das Unternehmen ArcelorMittal Construction hat in Kiew eine Absichtserklärung mit Ukraine Invest, dem Investitionsförderungsbüro des Landes, unterzeichnet. Die geplante Investition sieht die Errichtung einer hochmodernen Produktionsstätte vor, in der Stahltrapezprofile und Sandwichpanele für die Gebäudehülle hergestellt werden. Dafür will der Konzern seinen recycelten und erneuerbar erzeugten Xcarb-Stahl in Kombination mit energieeffizienten Isolierkernen verwenden. Die Konstruktionslösung erfülle alle Anforderungen an Fassaden und Dächer von Gebäuden, insbesondere im Industrie-, Handels-, Logistik-, Agrar- und Lebensmittelsegment. Erklärtes Ziel ist ist, die beschädigte wirtschaftliche und infrastrukturelle Landschaft der Ukraine wiederzubeleben.

ArcelorMittal: „Positive Rolle beim Wiederaufbau“

In den kommenden Jahren will ArcelorMittal 40 Millionen Euro in die neue Anlage investieren – und so auch mehr als 100 neue Arbeitsplätze in der Region Kiew schaffen. „ArcelorMittal Construction ist fest entschlossen, eine positive Rolle beim Wiederaufbau der Ukraine zu spielen. Wir hoffen, mit dieser Investition nicht nur Strukturen wieder aufzubauen, sondern auch Gemeinden und das soziale Leben zu erneuern und so eine bessere und widerstandsfähigere Zukunft für alle zu gewährleisten“, erklärt Jean-Christophe Kennel, CEO von ArcelorMittal Construction.

Das Team von Ukraine Invest werde ArcelorMittal bei seinen Geschäften in der Ukraine beraten, so der geschäftsführende Direktor Oleksandr Melnychenko (Bildmitte). Zudem wolle man die Kommunikation zwischen den Vertretern des Investors und den Regierungsbehörden auf allen Ebenen ermöglichen und Unterstützung bei der Lösung von Problemen bieten, mit denen der Investor bei seinen Geschäften in der Ukraine konfrontiert sein könnte. „Ich bin ArcelorMittal Construction für die Zusammenarbeit bei der Entwicklung der ukrainischen Wirtschaft dankbar“, betont Melnychenko.

stahleisen.de

 

 

This week took place the Wire & Tube 2024 Düsseldorf fair. Considered the world’s most important trade fair for the tube, wire & cable industry and the central hub for international business, the 2024 edition brought together around 2.700 exhibitors from 60 countries and thousands of visitors from 135 countries in Düsseldorf.

The desire for personal exchange in these – economically and geopolitically – difficult times was clearly noticeable in the industry. “The world seems to turn faster and we turn with it. Every two years our industries get together here in Düsseldorf – the community stands by its location on the Rhine. We are very grateful for this and are working consistently to ensure that wire and Tube will also remain their industries’ No. 1 trade fairs in future,” delights Daniel Ryfisch, Director wire, Tube & Flow Technologies.

EUROMETAL’s presence at the fair made it possible to meet colleagues, members and and introduce our federation to dozens of contacts.

In 2026 wire and Tube will again fly their flags in Düsseldorf, from 13 to 17 April 2026.

The EU’s introduction of a Carbon Border Adjustment Mechanism is prompting some countries to introduce their own carbon border levies while others are considering retaliatory measures, the International Emissions Trading Association said April 18.

IETA, in a report, gave an overview of country-level responses to CBAM, finding that some — including Australia, Turkey and the UK — were developing their own carbon border levies in response.

“CBAM is making waves around the world, although it is still a decade before the system will be fully in place” IETA EU Policy Director Julia Michalak said in a statement. “It has triggered varying reactions ranging from threats of WTO challenges to commitments to establishing domestic carbon markets.”

Japan, Singapore and South Korea were the most likely supporters of CBAM, IETA said.

Canada may enter into bilateral agreements with the EU, while South Korea was considering changes to its own emissions trading system, the association said.

However, more hostile responses have come from petrostates and other countries exposed to exports to the EU.

“South Africa calls it discriminatory, India is considering retaliatory measures and China has raised concerns within WTO,” IETA said.

Phasing in from 2026, CBAM will levy a carbon tax on imports of selected energy intensive materials and products into the EU, removing the gap between the EU’s ETS carbon price and the export country of origin’s carbon price.

Analysis by S&P Global Commodity Insights found Brazil, Canada, South Africa and Turkey will be most exposed to the mechanism, with iron and steel by far the biggest sector targeted.

Platts, part of S&P Global Commodity Insights, assessed nearest December EU ETS allowances at Eur69.98/mt CO2 ($75/mt CO2) on April 17.

UK Emissions Trading System allowances settled at GBP35.62/mtCO2 ($44/mt) on April 17, while South Korea allowances were assessed at just Won 8,800/mt ($6.4/mt).

The new EU carbon border tax entered into application in a transitional phase Oct. 1, 2023, with the first reporting period for importers originally set to end Jan. 31, 2024. That was later extended by 30 days.

James Burgess

 

Domestic hot-rolled coil prices almost reached bottom on April 18 and such sentiment has been supported by rising import offers.

The rise of import offers was mainly driven by euro to the US dollar exchange rate.

Demand remained muted with no end-user consumption rise expected and distributors holding back from big bookings. Spot buyers have been avoiding to build stocks and preferred to buy smaller lots more frequently to cover the immediate needs and to avoid risks related with possible price decrease in the future.

Majority of sources believe that prices would stabilize around the current levels as costs would not allow a drop and support from some restocking and less competitive import would not be enough to push prices up, unless domestic capacities are cut.

Some market participants, however, believe that prices might drop below Eur600/mt ex-works Europe if the exchange rate changes.

Platts assessed domestic hot-rolled coil prices in Northwest Europe down Eur5/mt on the day at Eur625/mt ex-works Ruhr on April 18.

Tradable values were reported at Eur620-630/mt ex-works Ruhr.

A deal was heard at Eur625/mt ex-works Ruhr.

A German mill has been offering the material at Eur630/mt ex-works Ruhr.

Platts assessed prices for imported material in Northwest Europe up Eur5/mt on the day to Eur595/mt CIF Antwerp.

Offers were reported at Eur600-610/mt CIF Antwerp for the material from Asia.

Platts assessed domestic prices for hot-rolled coil in South Europe unchanged on the day at Eur620/mt ex-works Italy April 18.

Tradable values were reported at Eur620/mt ex-works Italy and a deal for a bigger lot with a pipemaker was heard at Eur615/mt ex-works Italy, but the price was not available for the wider market.

Maria Tanatar

spglobal.com

 

Sweden-based steelmaker Ovako has announced that it has signed a partnership deal with the Netherlands-based premium wire rod manufacturer FNsteel to boost low carbon production of high value-added wire rod in Europe.

The deal will last for a minimum of two years, commencing in 2025.

The partnership will see Ovako’s Smedjebacken mill managing the production flow of the low carbon-footprint steel raw material used by FNsteel to manufacture premium wire rod. The low carbon and high value-added wire rod to be produced will be supplied to the automotive, construction and engineering sectors in Europe.

Ovako emerged as the ideal partner for this partnership as the steel it produces has an 80 percent lower carbon footprint compared to the global average.