Revista InfoAcero Marzo 2024

En el siguiente enlace pueden acceder a la edición de Marzo de nuestra revista INFOACERO.

Destacamos a continuación algunos de sus contenidos:

  • Opinión –  D. Manuel García- Junta Directiva UAHE 
  • Evolución del Índice de Precios de Productos Siderúrgicos – UAHE
  • Sector Metal: Actividad Productiva y Comercio Exterior – Confemetal
  • Siderurgia:  Previsión de los sectores consumidores de la UE 27 – Informe Eurofer – 1er trimestre 2024
  • Información AsociativaNuevo servicio UAHE-Gestión de Riesgos // Próximos Cursos UAHE
  • Steel Net Forum Iberia 2024: 11 y 12 de Abril en Santiago- ¡ÚLTIMA LLAMADA!

 

DRI usage will continue to grow: IIMA adviser

Expansion in direct reduced iron (DRI) consumption is likely while the world’s steelmakers strive to decarbonise production and to secure future feedstock, Kallanish learns from an article by consultant Robert Mazurak.

Mazurak, an adviser to the International Iron Metallics Assocaition, says the use of DRI and hot briquetted iron (HBI) in steelmaking is gaining broader acceptance. Global DRI production has risen since 2016 by nearly 8 million tonnes per year.

“The accelerated growth rate in DRI production may well continue, such that likely we will be seeing another 60mt of incremental DRI output by the end of 2030 to reach an annual level of 185-190mt, rising to 13% of the combined BFI plus DRI ironmaking total,” Mazurak states in his article, published on the Midrex website.

The president of Mazurak Resource Consulting is cautiously optimistic that ore-based metallics (OBM) growth rates will be sustained, with accelerated production and use of all forms of DRI. This comes with new iron ore briquetting hubs, including one announced by Vale, that will likely rise to serve multiple off-takers in targeted regions to feed both existing and new DRI plants.

Straight melting of scrap in an electric arc furnace (EAF), combined with “green” power sources such as hydrogen, results in much lower emissions and carbon footprint compared with traditional steelmaking. Melting scrap and DRI in an EAF is the next best alternative.

To that end, hydrogen-enriched gas-based reduction of iron ore in DRI plants, plus arc furnace melting of DRI and scrap, currently offers the primary pathway for lowest carbon emission steelmaking.

“I’ve been chastened in my belief that breakthrough smelting reduction technologies would have gained more traction by now as competition to the DRI-EAF steelmaking route. It now seems clear that the ‘tried and true,’ proven DRI technologies will be the ones to proliferate over the next several decades,” states Mazurak, adding: “Advancements in direct smelting technologies could slowly develop and ultimately impact DRI plant capacity growth rates.”

Over the last 20 years, cold DRI (CDRI) production went from 39mt to 102.1mt, while hot DRI (HDRI) soared nearly eight-fold, from 1.8mt to 13.0mt in 2022.

“The rapid rise in HDRI use in the EAF is from the recognition that it provides the benefits of quicker melting and an energy savings from the retained, latent heat. However, global hot briquetted iron production has increased only marginally, from 8.6mt in 2003 to 11.4mt in 2022, despite being the most desirable DRI form for seaborne trade,” notes Mazurak.

Other recognised applications gaining acceptance include HBI use in blast furnaces for productivity enhancement and in basic oxygen furnaces as trim coolant.

John Isaacson USA

kallanish.com

 

Steel workers voice concern over ‘irresponsible’ green transition

Rising global steel overcapacity due to “irresponsible” practices by some multinationals and “misguided action” by governments failing to invest in the green transition is damaging the steel workforce in favour of short-term profit maximisation. So says the Trade Union Advisory Committee (TUAC) to the OECD.

At the OECD Steel Committee meeting in Paris on 25-26 March, TUAC says it raised issues with some steel companies refusing to sit at the table with union representatives.

Multinational companies are “exploiting competition between states over decarbonisation aid,” TUAC says in a note seen by Kallanish. “There is a growing concern that workers will bear the cost of essential investments for carbon emission reduction, through mass dismissals rather than upskilling and re-training, even in steel companies that are not under financial pressure.”

“TUAC partners argue that the current changes in the steel industry do not equal a just transition, instead fearing an unjust transition where only financial goals are pursued over environmental and social priorities. TUAC, IndustriALL Global Union and industriAll Europe urgently call for a re-evaluation of priorities within the steel industry, advocating for a balanced approach with workers at the table,” TUAC says.

“We call on governments to make financial support to steel companies conditional on new investments in green technology, retention of workers and respect of social dialogue,” it concludes.

Adam Smith, Poland

kallanish.com

Thyssenkrupp Steel to connect to GET H2 German hydrogen pipeline in 2028

Thyssenkrupp has signed a realization agreement with gas transmission system operators Nowega, OGE and Thyssengas to connect its Duisburg steel plant in Germany to the GET H2 hydrogen pipeline network in 2028 as it seeks to decarbonize its operations.

The GET H2 pipeline project plans to connect green hydrogen production hubs with industrial consumers in the Lower Saxony and North Rhine-Westphalia regions.

“With this contract, the hydrogen economy in North Rhine-Westphalia and Germany continues to take shape,” the companies said in a statement March 21.

The 135-km pipeline network between Lingen and Gelsenkirchen will be extended to the Duisburg steelworks via a 40-km link from Dorsten. GET H2 in turn will link to the planned national hydrogen pipeline network.

Thyssenkrupp is looking to move to hydrogen-based steel production, and is to construct a 2.5-million mt/year direct reduction iron plant to replace the four blast furnaces at Duisburg. First production is scheduled from the end of 2026, avoiding up to 3.5 million mt/year of CO2 emissions.

The direct reduction plant will reduce iron ore pellets to sponge iron using hydrogen, with natural gas in the interim.

In February, Thyssenkrupp issued a tender to purchase up to 151,000 mt/year of renewable and low-carbon hydrogen under 10-year contracts, with lower volumes starting from 2028, for pipeline delivery to the Duisburg steelworks.

The steelmaker will seek an expected 104,000 mt of hydrogen in 2028, rising to 143,000 mt/year over 2029-35 before reaching 151,000 mt/year over 2036-37 as it seeks to decarbonize the plant.

The gas TSOs are to convert existing gas pipelines between Vlieghuis in the Netherlands and Kalle and onward to Ochtrup to transport hydrogen and connect to the GET H2 pipeline system by 2027, with the Duisburg plant connected in 2028.

Thyssenkrupp said previously that as sufficient green hydrogen would not be available when the plant starts, it plans to use natural gas when the DRI plant is commissioned, with blue hydrogen acting as a bridge before renewable production ramps up.

Platts, part of S&P Global Commodity Insights, assessed the cost of producing hydrogen via alkaline electrolysis in Europe at Eur4.46/kg ($4.85/kg) March 20 (Netherlands, including capex), based on month-ahead power prices. Proton exchange membrane electrolysis production was assessed at Eur4.90/kg, while blue hydrogen production by steam methane reforming (including carbon, CCS and capex) was Eur2.34/kg.

The contract between Thyssenkrupp and the gas TSOs regulates the hydrogen pipeline conversion and construction, as well as rights and obligations of the partners until the start of operations.

 

 

 

Thyssenkrupp steel decarbonization

Thyssenkrupp Steel is the largest flat steel manufacturer in Germany, producing around 11 million mt/year of crude steel.

The company aims to cut CO2 emissions by over 30% by 2030, targeting climate neutrality across all its sites by 2045.

In July, the European Commission approved a German Eur550-million direct grant and conditional payment mechanism of up to Eur1.45 billion to support ThyssenKrupp Steel Europe in decarbonizing its steel production and accelerating renewable hydrogen uptake.

Europe-based buyers have started to show greater interest in carbon-accounted steel. Platts assessed Northwest European hot-rolled carbon-accounted coil down Eur5 on the day at Eur800/mt ex-works Ruhr March 20.

 

GET H2 network

The GET H2 network consortium also includes BP, RWE and Evonik.

In September, RWE produced the first hydrogen at its test electrolyzer in Lingen for a pipeline transport and storage trial.

The 250-kW high-temperature solid oxide electrolyzer from manufacturer Sunfire will produce up to 7 kg/hour of hydrogen for the GET H2 TransHyDE project, which will test hydrogen pipeline transport and storage from 2024.

RWE plans to start up a larger 14-MW pilot electrolyzer plant for industrial-scale production at Lingen in the coming months. The 14-MW plant will test the use of two electrolyzer technologies, pressurized alkaline and proton exchange membrane, which RWE is considering for future projects.

It also received construction and operation approval for the first two 100-MW electrolyzer plants of its 300-MW GET H2 Nukleus project in Lingen in September.

The 200-MW plant will produce up to 35,000 mt/year of green hydrogen for industrial decarbonization.

And in October, OGE and Nowega began work to convert the first 46-km section of pipeline from the OGE compressor station in Emsburen to Bad Bentheim in Lower Saxony and on to Legden in North Rhine-Westphalia for hydrogen use.

The conversion will see the pipeline sections separated from the gas network after which upgrade measures for the transport of hydrogen will begin. The pipeline would then be ready to flow hydrogen from 2025.

Author: James Burgess, james.burgess@spglobal.com, Annalisa Villa, annalisa.villa@spglobal.com

spglobal.com

US’ Nucor to supply Mercedes with low-embodied carbon steel

Nucor has signed an agreement with Mercedes-Benz to supply certified low-embodied carbon steel for vehicle models produced at the automaker’s Tuscaloosa, Alabama, plant, the US-based steelmaker said in a statement March 20.

Nucor will supply Mercedes with its Econiq-RE steel products, which are produced with 100% renewable energy, reducing greenhouse gas emissions to less than half of that of blast furnace-based steel production for Scopes 1, 2 and 3 emissions, it said. Econiq, launched in 2022 with General Motors as the first customer, is not a single product; it is a net-zero certification, which can be applied to any product from Nucor’s steel mills, according to the company’s website.

The agreement comes as Mercedes and other global automakers look to decarbonize supply chains, increasing demand for low-emissions steel.

The use of Nucor’s Econiq brand will reduce carbon emissions throughout Mercedes’ supply chain, according to Dan Needham, Nucor’s executive vice president for commercial. Associated volumes were not disclosed.

“Our Econiq brand is helping steel end-users meet their growth and sustainability goals, and we are proud that it is going to be a key piece of Mercedes-Benz’s path towards a net carbon-neutral new car fleet along the entire value chain,” Needham said.

Mercedes has set a goal to have its entire fleet of new vehicles be net carbon neutral across its entire value chain by 2039. To support this, it has signed agreements to source low-carbon steel with Germany’s Thyssenkrupp Steel, Italy’s Arvedi and Sweden’s H2 Green Steel to supply its European operations.

In the US, Mercedes signed an agreement with Steel Dynamics Inc. in September for the supply of more than 50,000 st/year of CO2-reduced steel for its Tuscaloosa auto plant.

Amid growing demand for greener steel products, low-carbon premiums have emerged in Europe. Platts, part of S&P Global Commodity Insights, last assessed Northwest European hot-rolled carbon-accounted coil at Eur805/mt ($874.3105/mt) ex-works Ruhr March 19, reflecting a premium of Eur125/mt over the Northwest European HRC price of Eur680/mt the same day.

The assessments reflect trade in HRC with carbon emissions certified by an internationally accepted, independent organization. The European HRC Carbon-Accounted Steel Premium reflects any differential achieved for the spot sale of hot-rolled steel on an ex-works basis, with total accounted carbon emissions of 2.1 mt of CO2, or less, for every metric ton of steel produced.

Author: Justine Coyne, justine.coyne@spglobal.com

spglobal.com

UK details carbon border tax proposals as it kicks off consultation

  • Seeks views for the design and administration of CBAM
  • UK CBAM to start in 2027, a year after EU
  • Iron, steel and aluminum sectors likely to be heavily impacted

The United Kingdom launched a consultation to help it design a carbon border tax on imports of emissions intensive products from 2027, the government said March 21.

The consultation, that will run for a 12-week period ending June 13, is part of the country’s efforts to introduce a carbon border adjustment mechanism (CBAM) by 2027 on imports of goods from the following sectors: aluminum, cement, ceramics, fertilizers, glass, hydrogen, iron and steel.

The purpose of the consultation is to gather views hear from importers and their agents, other businesses, individuals, tax advisers, trade and professional bodies and other interested parties, including those overseas, according to documents released by the UK Department for Energy Security and Net Zero.

The charge applied by the UK CBAM will depend on the amount of carbon emitted in the production of the good and the gap between the carbon price applied in the country of origin – if any – and the carbon price faced by UK producers.

Under the current proposal, the government will set and levy seven rates of tax, one for each sector.

This rate, which will be set by the government, will be determined by a methodology and updated on a quarterly basis, reflecting the price of UK Allowances under the UK Emissions Trading Scheme.

“The UK CBAM rate will be reduced (potentially to zero) if the embodied emissions in the CBAM goods were subject to a carbon price overseas that was greater than or equal to the UK CBAM rate for that sector,” the document said.

UK carbon prices have been extremely weak in the past 12 months on weaker demand due to lower power generation and weak manufacturing numbers, along with doubts over the government’s climate commitments.

Platts, part of S&P Global Commodity Insights, assessed UKAs at GBP35.60/mtCO2e on March 21. This is a slight rise after prices fell to a record-low of GBP31.42/mtCO2e on Jan. 29.

 

Prone sectors, countries

The document also said that based on historic trade flow data, the iron and steel and aluminium, will be most exposed to its CBAM.

The total value of CBAM imports from iron & steel and aluminium in 2023 were GBP4.5 billion and GBP11.87 billion respectively, according to HM Revenue and Customs data. The mechanism is likely to have a notable impact on the EU, China, Turkey, US, India and Taiwan, which are the top 5 origin markets of CBAM imports, the document showed.

The first accounting period for the carbon leakage tax will run from Jan. 1 to Dec. 31, 2027, while from 2028, the periods will become quarterly.

“Using a quarterly reference to the UK ETS price would allow for the UK CBAM rate to track the changes in the UK ETS price throughout the year, whilst balancing the need to give importers certainty on the price they will pay for their consignments in each reporting period,” the document added.

This comes after the EU’s own CBAM entered into force in its transitional phase from Oct. 31, 2023. The main purpose of CBAM seems to be to push the European industry to significantly decarbonize without being undercut by other geographies with no carbon costs.

However, EU’s CBAM, will fully apply from 2026, a year before the UK tax. This mechanism also obliges companies that import into the bloc to pay a tax to account for the difference between the carbon price paid in the country of production and the price of carbon allowances in the EU ETS.

The UK ETS, which became operational in 2021, is currently in its first phase, set to run until 2025. It regulates CO2 emissions from power generation, emissions-intensive heavy industries and aviation — a similar sectoral scope to the EU ETS. The UK has set a target to reduce emissions by 78% by 2035 compared with 1990 levels before reaching net zero by 2050.

Author: Eklavya Gupte, eklavya.gupte@spglobal.com 

spglobal.com

UK launches CBAM consultation

UK authorities have launched a consultation on the proposal to introduce from January 2027 a carbon border adjustment mechanism (CBAM) on imports into the UK of certain carbon intensive goods, including steel.

The closing date for comments is 13 June.

The UK announced the 2027 implementation timetable in December (see Kallanish passim). UK Steel said then that the failure to align with the EU’s CBAM timetable leaves the UK steel industry vulnerable.

All chapter 72 iron and steel products are proposed to be included under CBAM, excluding ferroalloys and scrap. Of the total value of £20.48 billion ($25.9 billion) of CBAM sector imports into the UK in 2023, iron and steel accounted for 58%, with 62.9% coming from countries linked to the EU ETS, according to UK HM Revenue & Customs data.

Adam Smith Poland

kallanish.com

Italian mills cut rebar prices again

Italian longs producers cut prices this week, amid the weak construction season and tepid global market recovery.

Argus‘ weekly Italian rebar assessments declined by €15/t to €575/t ex-works, while the drawing-quality wire rod index softened by €10/t, to €650/t delivered.

Italian producers dropped rebar prices to €580/t ex-works, including extras for sizes, with levels of €560-570/t ex-works available for larger orders, probably in attempts to spur buying interest ahead of the Easter holiday. Demand remains low as customers still doubt prices have reached the bottom, market participants said.

Indications for Italian drawing quality wire rod stood in a wide range of €640-670/t delivered locally and to nearby markets depending on tonnages, but producers were yet to start offering April material. In Spain offers were €10/t below these levels last week, but given high pressure from imports it was possible to obtain lower prices for sizable tonnages in Italy and Spain. Workable levels for high-carbon wire rod remained at €750-780/t delivered in Italy late last week.

Offers to nearby markets were scarce as some mills closed their March order books and were about to start their April campaign next week. But indications for rebar were pegged at €585-590/t ex-works, although given lower local prices discounts were deemed available. Despite a slow recovery seen in the construction sector across Europe, Italian mills were mainly focused on the central region while they faced high competition with Turkish suppliers in the southern countries.

Although inflation rates fell below 3pc, it was unclear if interest rates might decrease, but any cut would only be slight, a German market participant said. Construction activity is not expected to improve substantially, with fabricators maintaining cut and rebar prices in the range of €650-690/t delivered in Germany. Rebar prices from Germany mills were indicated at €640-650/t delivered for smaller tonnages and at least €630-640/t delivered lower for larger lots, with €620/t delivered available in some cases. Some German buyers were still receiving tonnages booked late last year for the first quarter as they had to postpone these deliveries after slower than expected construction demand.

In Poland rebar prices fell to €650/t delivered and below locally, with €630/t delivered available to nearby markets last week.

Offers of Bulgarian rebar lowered to 1,215-1,230 lev/t (€621-629/t) delivered last week under pressure from cheaper imports.

Some European buyers have resumed purchases of rebar and wire rod from overseas suppliers in recent weeks, suggesting prices may be close to reaching a floor. Sales were reported mainly from Turkey to Balkan markets at $580-595/t for small lots of rebar, with latest bookings heard to Serbia and Albania last week. “In Serbia no-one wants to buy a kilogram, as they are scared of further price drops,” a buyer said. Drawing quality wire rod was also heard booked from Turkey mainly to Spain at €590/t cfr or slightly below for late March-early April shipment in the past two weeks, with this quarter’s quota filled and it is estimated that Turkish allocation for the next quota period will be exhausted promptly in the first few days of next month.

Egyptian mills were offering rebar at $580-590/t fob and were said to be focusing on other markets, such as the Americas. There was talk that GCC rebar might have been imported to Europe recently, probably because of a prolonged downturn in Asia and other markets, but no details have emerged.

Argus Media

argusmedia.com

Klöckner’s Americas optimism fails to extend to Europe

Klöckner & Co is less optimistic about the outlook for the European market than for North America, which is expected to perform strongly.

The steel distribution group said in its annual results presentation last week that it expects “considerably stronger demand in its key European and North American markets,” in 2024. This contradicted the dim outlook given by many European players for demand and consumption in Germany and its neighbouring markets over the coming months.

On the day following the results presentation, chief executive Guido Kerkhoff clarified to Kallanish that Klöckner’s optimism is valid for North America, and much less so for Europe. He detailed that 60% of the company’s revenue now comes from North America, with Germany accounting for 25% and Switzerland for 15%. Only this month, Klöckner finalised the divestment of its operations in four other European countries – France, the United Kingdom, the Netherlands and Belgium. This leaves Germany and Switzerland as its only remaining markets in Europe.

Kerkhoff noted that he would welcome very much if Europe saw a recovery this year. He praised the prospects in Mexico especially, which he said “is booming enormously”.

Klöckner’s optimism triggered a rise in its share price by 3% after the announcement of annual figures. The same logic apparently applies for Klöckner as for other German groups with a strong international presence. These companies have defied over recent months the current lull in domestic investment and demand, and seen their share prices climb, leading to new highs for the DAX index this month at 18,000.

Christian Koehl Germany

kallanish.com

The Beauty of Steel: unveiling the enchantment of Steel with a visual archive

The steel industry, renowned for its strength and versatility, is about to be appreciated in a whole new light: its captivating beauty. Today marks the launch of a groundbreaking initiative, “The Beauty of Steel,” the first and largest visual database dedicated to celebrating the undeniable aesthetic appeal of steel.

The Beauty of Steel” seeks to revolutionize how steel is perceived, showcasing its elegance and innovation. This one-of-a-kind platform invites the public on a virtual journey to explore the awe-inspiring world of steel production around the globe.

At the core of “The Beauty of Steel” lies a comprehensive online repository, accessible to enthusiasts, professionals, and the general public. The platform offers a treasure trove of captivating visuals, insightful articles, and compelling stories that unveil the aesthetic wonder of steel.

Beyond its vast collection, “The Beauty of Steel” prioritizes fostering a vibrant community. Interactive features like a geo map, user-generated content options, and authentic storytelling encourage global participation and a lively exchange of ideas. It extends its reach beyond the website with a strong social media presence, inviting users to connect using the hashtag #beautyofsteel.

“Steel is more than just a material; it’s a canvas for creativity and expression,” says Viktor Macha, Founder and CEO of “The Beauty of Steel.” “Our platform celebrates the inherent allure of steel while building a community of enthusiasts who share our passion for its aesthetic potential. Since 2008, we’ve documented over 355 factories across 5 continents and 33 countries. This is just the beginning.”

“The Beauty of Steel” welcomes everyone – engineers, managers, factory workers, artists, or anyone who appreciates beauty in everyday life – to explore, engage, and be inspired by the multifaceted beauty of steel.

Source: thebeautyofsteel.com