Green steel needs standardisation for global recognition: BIR

The lack of industry agreement on the definition of low-carbon, or green steel, and the many challenges to achieve a globally recognised sustainable steel are impacting the ferrous recycling industry, Kallanish learns.

These challenges include emissions certification and standards, trade policies, energy costs and unwillingness to use recycled steel, noted panellists during the BIR Ferrous Division at the recent World Recycling Convention at Singapore.

Sustainability was a challenging and complex area for recyclers, Patrick Davison, director of sustainability at European Metal Recycling told delegates.

“Can blast furnaces be green?” he asked, “They are claiming to have high volume material, high quality materials but actually we have a significant environmental footprint associated with the manufacture of materials from there.”

He called for collaboration within the recycling industry so that the challenges are jointly understood, and that “we are very clear and consistent about what we think green steel is.”

Without common regulations globally, it was going to be hard to drive reductions in the carbon footprint of steel production and make more sustainable steel, George Adams, ceo of SA Recycling said.

He noted it was “easier for mills to run iron ore pellets” than recycled steel in US and “they’re not as focused on their carbon footprint as they are on their bonuses”.

But he stressed that recycling remains crucial. “It doesn’t matter whether it’s aluminium or steel or copper, nothing reduces carbon more than recycling. The EU is much more ahead of the US on [regulation] because, at the end of the day, customers are still looking at the cost.”

However, Emmanuel Katrakis, Director of Public and Regulatory Affairs at Galloo noted that 70% of US production is via EAF and recycled steel.

He added that the EU was facing an energy crisis because of the war in Ukraine which has decoupled energy prices from the rest of the world. At the same time, the US had implemented its Inflation Reduction legislation, and “Big players in Europe invested in decarbonisation, not in Europe but in the US because of that financial stimulus.”

In an earlier presentation Adina Renee Adler, executive director of Global Steel Climate Council told delegates that data on emissions should be collected throughout the supply chain of steel production.

However, Adams pushed back on this, saying that scrap should simply be counted as having zero emissions. He cautioned that some scrap will not get recycled in instances where being situated too far away would incur too large a carbon footprint.

Additionally, he was concerned gathering such data would be “too challenging” for the smaller scrap collectors.

Shane Mellor, managing director, at Mellor Metals and BIR Ferrous Division President agreed, adding “a product comes to the end of its life when it enters the recycling facility. You’re at zero at that point.”

Anna Low Singapore

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Italian rebar flattens as mills prepare increases

Italian rebar producers have been encouraging buyers to complete contracted deliveries by end-October in anticipation of fresh price increases for November orders. According to industry sources, the increase will amount to €30-40/tonne ($32.62-43.49) over current prices.

Buyers and sellers confirm to Kallanish that until business close on Thursday, prior to Friday’s public holiday, all steelmakers were quoting at €270-285/t base ex-works. Customer activity is slow, with only back-to-back purchases occurring. New prices are projected to range between €300-310/t base ex-works in November, depending on producer.

Contract values have been mostly stable in recent weeks. Domestic market transactions took place at €270-280/t base ex-works. Including size extras at an average cost of €260/t, effective prices are hovering at around €530-540/t ex-works. Domestic mesh is pegged at around €380/t, excluding transport costs and €300/t size extras, sources suggest.

A number of producers are executing stoppages, some involving temporary layoffs. Some mills are implementing longer production halts for the 1 November bank holiday.

Multiple sources indicate that Egyptian rebar vessels are currently available in Sicily, with product priced at €530/t ex-vessel for orders up to 1,000 tonnes. A trader says that an Egyptian rebar seller needed to enhance sales volumes and increased exports to neighbouring countries, including southern Italy. One mill source claims the Egyptian material exemplifies dumping and will be reported to the relevant authorities.

Natalia Capra France

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ArcelorMittal Luxembourg improves sustainability following ResponsibleSteel audit

Following the recent ResponsibleSteel assessment, ArcelorMittal Luxembourg’s Belval, Differdange, and Rodange operations are investing in improving sustainability. The sites’ ResponsibleSteel certification has recently been renewed, Kallanish notes.

The Luxembourg long products division, which received certification three years ago, aims to recycle 100% of its byproducts by 2030 and is now developing 13 projects in response to the audit findings.

These include noise and vibration effect research on surrounding neighbours, as well as a new management strategy for the long-term recovery of waste and byproducts, and enhanced monitoring of their lifecycle.

“Once the [ResponsibleSteel] audit is completed, the sites receive a detailed report including points for improvement to accompany the certification … Since 2021, we have questioned and further improved our standards related to the environment, governance, and sustainability,” the steelmaker notes.

Earlier this year, ResponsibleSteel launched a new version of International Standard, 2.1, which strengthens the Progress Level requirements for responsible materials sourcing and climate change and greenhouse gas emissions. Steelmakers who meet the revised Progress Level requirements will for the first time be able to label and market their products as ResponsibleSteel certified (see Kallanish passim).

ArcelorMittal meanwhile announced its third-quarter sell-side analyst consensus figures based on analysts’ estimates provided by Visible Alpha, an independent entity. According to the forecast, the company’s Ebitda should reach $1.488 billion, with net income at $420 million.

Natalia Capra France

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EU coil market sees limited justification for hikes

European buyers of coil still have doubts about mills being able to achieve their desired level of price hike, although they appreciate the move in principle.

The unofficial announcement made by ArcelorMittal in early October (see Kallanish 2 October) to bring up coil prices by €40/tonne ($43) was spoken out loud at the Euroblech trade show in Hanover last week. “Of course, prior to the trade show, Hannibal would climb on the elephant and trumpet a price,” one German attendant quipped. “And they [mills] will be sticking to it, yes, but the fundamental economic data are even below the forecasts of the first half-year, so where are the grounds for higher prices?” he wondered.

Although the increase attempt is considered justified in the interest of profitability for mills and a healthier pricing structure, some observers say that, one step down the chain, prices are still being spoiled at distributor level.

“High stocks are leading to severe competition between distributors and service centres, caused by the need for cash flow and for low inventories at year-end,” a Dutch manager told Kallanish a few weeks previously. That situation has not changed much. “There are still distributors conceding a loss when selling, to keep the shop running,” a distribution group manager said during last week’s trade show.

Sheet cut from hot rolled coil in countries like Germany, France and Italy is being handled at approximately €630/t ($684), sometimes less. The price would be just about acceptable if the coil was bought during the price trough in September, at less than €550/t, “but most material will be coil bought during times of prices exceeding €600”, another observer cautioned.

According to the Dutch source, low demand still means distributors and service centres are refraining from sending out inquiries to mills.

A source offering a totally different point of view is technology supplier Schuler, maker of sheet processing equipment. In the run-up to Euroblech, it issued a statement on what it called a structural crisis in the automotive industry. “Because of low car sales, the pressing plants are not being utilised and carmakers are refraining from investment,” Schuler wrote.

Christian Koehl Germany

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European HRC prices largely unchanged; buyers doubt higher offers for 2025 could be achieved

Prices for European hot-rolled coil remained largely stable on Wednesday October 30, with trading still limited, sources told Fastmarkets.

Fastmarkets calculated its daily steel hot-rolled coil index, domestic, exw Northern Europe at €554.38 ($599.16) per tonne on Wednesday, down by €1.04 per tonne from €555.42 per tonne the previous day.

The index was up by €4.38 per tonne week on week and up by €12.71 per tonne month on month.

Mills in Northern Europe were heard pushing for higher prices for the first quarter of 2025, Fastmarkets understands.

Offers for January-delivery HRC were reported at €600-620 per tonne ex-works, with some suppliers offering even at €640 per tonne ex-works.

These levels have not been sealed in deals yet, sources told Fastmarkets.

Material with delivery in the fourth quarter of 2024 was available at lower levels. Transactions for December-delivery HRC were reported at €550-570 per tonne ex-works, while offers for such material were around €570-580 per tonne ex-works.

Buyers, however, were skeptical that mills would succeed in implementing the targeted price rise for the beginning of the next year.

A buyer source told Fastmarkets that just a few weeks ago HRC in Northern Europe was traded at €520-530 per tonne ex-works. The source questioned the sustainability of the new higher offers announced for the first quarter of 2025, which were as high as €600-640 per tonne ex-works.

“This is the same economy and the same outlook,” the source said, adding that demand for HRC is still low in Europe.

The latest report of the European steel industry association Eurofer indicated that apparent steel consumption would not recover in 2024, but some rebound could be expected for the next year.

A second buyer source described the new offers from mills as “wishful thinking”.

In Southern Europe, Fastmarkets calculated its daily steel hot-rolled coil index, domestic, exw Italy at €551.43 per tonne on Wednesday, up by €2.80 per tonne from €548.63 per tonne the previous day.

The Italian index was up by €3.05 per tonne week on week and up by €12.43 per tonne month on month.

Suppliers in Italy were offering December-delivery HRC at €570-580 per tonne delivered, which would net back to €560-570 per tonne ex-works, Fastmarkets heard.

Large volumes of HRC could still be traded at €540-550 per tonne ex-works, but the workable market level for small to medium tonnages was estimated at €560 per tonne ex-works, according to market participants.

Import prices remained uncompetitive and no fresh business was concluded on Wednesday, sources told Fastmarkets.

In Italy, November-shipment HRC from Turkey was on offer at €580-590 per tonne CFR to Italy, including the anti-dumping duty, while Asian material was offered at €550-570 per tonne CFR, but buyers’ estimates for the tradeable market level was lower, at €530 per tonne CFR.

Published by: Darina Kahramanova

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European HRC prices remain steady in quiet market

Prices for European hot-rolled coil were largely flat on Monday October 28 in a quiet market, sources told Fastmarkets.

Fastmarkets calculated its daily steel HRC index, domestic, exw Northern Europe at €550.29 ($594.04) on Monday, up by just €0.29 per tonne from €550.00 per tonne on Friday October 25.

The index was down by €2.84 per tonne week on week, but up by €5.08 per tonne month on month.

Mills in Northern Europe were heard offering November/December-delivery HRC at €550-570 per tonne ex-works.

Higher prices were on offer for the first quarter of 2025, at €580-600 per tonne ex-works, sources said.

But buyer estimates for the workable level for November/December-delivery came in at €540-550 per tonne ex-works.

And some deals were reported at €550 per tonne ex-works.

Producer hopes for a stronger price rebound seem to have been postponed, however, at least until the first, or even second, quarter of next year, Fastmarkets understands.

The main factors expected to support prices were the uncompetitive import offers and potential production cuts across Europe, but there has been no official information about any moves in this direction, sources told Fastmarkets.

There were some rumors one integrated mill in Europe planned to increase its HRC offer prices in November, but that could not be confirmed.

“The main problem of the steel sector in Europe is the very low demand or the lack of demand,” a buyer source told Fastmarkets.

And a second buyer said the market remains quiet.

“I doubt that many buyers would like to book HRC even at €550 per tonne ex-works. Some volumes were already traded when prices were lower – at €520-530 per tonne ex-works,” the second buyer source said.

The source told Fastmarkets that, while attempts by producers to push up prices in October were not so successful, they did at least stop prices falling any further and Europe’s automotive sector was still struggling, with some companies not booking the expected volumes of HRC.

“This is the reason why some mills are still offering November-delivery coil,” the second buyer source added.

In Southern Europe, Fastmarkets calculated its corresponding daily steel HRC index, domestic, exw Italy at €547.00 per tonne on Monday, up by €0.75 per tonne from €546.25 per tonne on Friday.

The Italian index was down by €4.25 per tonne week on week, but up by €5.33 per tonne month on month.

Trading in Italy was quiet, sources said, with suppliers pushing to achieve their offer prices without granting significant discounts.

Local mills were offering December/January-delivery HRC at €570-580 per tonne delivered (€560-570 per tonne ex-works), Fastmarkets understands.

And sources said that November-delivery material was also still available.

Buyer estimates for the tradable market level came in at €540-550 per tonne ex-works.

Import offers of HRC, meanwhile, remained uncompetitive and there were no fresh deals, sources told Fastmarkets.

November-shipment HRC from Turkey was on offer at €580-590 per tonne CFR Italy, including the anti-dumping duty, while Asian material was on offer at €550-570 per tonne CFR, Fastmarkets understands.

Published by: Darina Kahramanova

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Heine + Beisswenger opens new site near Bremen

German steel distribution group Heine + Beisswenger has opened a new base in Lemwerder near Bremen, northern Germany, Kallanish learns from the company.

It thereby aims to win new customers in the northern German industries of shipbuilding, hydraulics, fittings, and energy. This includes makers of wind power plants, pumps, or agricultural machinery.

For fittings, the location is offering high-wear steels such as P250GH+N, A105+N and TSTE355, the company notes. For typical products for the energy industry, like drills, pipes and valve housings, it offers P250GH+N, SA105 and corrosion resistant steels 1.4462, 1.4571 und 1.4404. For agricultural machinery, it is banking on S235 und S355 grades. For cranes and hydraulics, its portfolio covers creep resistant steel with extraordinary longevity, H+B says.

The group is headquartered in Fellbach, southwestern Germany, and operates seven more sites, most of them in the south, but also in North Rhine-Westphalia, near Berlin, and now near Bremen. It mostly handles long products and is mainly active in special bar qualities, with an annual throughput of 250,000 tonnes.

It recently carried out some consolidation on its home turf in the southwest by closing a site in Pforzheim. Customers in the region will now be served from Fellbach and Trossingen, where it recently started operating a new €7 million ($7.7m) logistics centre (see Kallanish 17 July).

Christian Koehl Germany

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Turkey’s coated, rod EU TRQ usage becomes critical

Turkey-origin organic coated sheet, wire rod and two tube and pipe categories have rapidly increased EU tariff-rate quota (TRQ) utilisation, Kallanish notes from the EU customs portal.

The organic coated sheet category is nearing full quota utilisation, with 1,280 tonnes remaining out of a 15,889t quota for Turkey-origin imports. This leaves 6% of the total quota still available.

For wire rod, 6,052t remain available out of the 119,011t quota, leaving 5% of Turkey’s TRQ still open.

Hollow sections have completely exhausted their quota, while large welded tube and other welded pipe have just 2% and 1% of their TRQs open, respectively.

The largest category, hot-rolled sheet and strip, have seen moderate usage, with 58% of the 475,174t quota still open, leaving a balance of 279,147t.

Turkish steel products EU TRQ allocation (tonnes)
Product Quota 01.10- 31.12.2024 Imported Balance Awaiting allocation Remaining Available TRQ %
HR sheets, strips 475,174 196,026 279,147 3,628 275,519 58
Organic coated sheets 15,889 14,609 1,280 281 999 6
Stainless CR sheets, strips 21,057 8,234 12,823 241 12,582 60
Merchant bars, light sections 107,140 18,403 88,738 520 88,218 82
Rebar 95,436 48,790 46,646 0 46,646 49
Wire rod 119,011 112,959 6,052 0 6,052 5
Railway material 1,574 436 1,137 0 1,137 72
Gas pipes 49,976 32,232 17,744 955 16,788 34
Hollow sections 99,462 99,462 0 0 0 0
Large welded tubes 15,096 14,732 364 3 361 2
Other welded pipes 38,497 38,134 364 3 361 1
Wire 51,946 15,288 36,658 626 36,032 69

Source: EU TARIC, as of 25 October. Calculated by Kallanish

Elina Virchenko UAE

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British Steel starts carbon capture trial

British Steel is trialling new carbon capture technology at its plant in Scunthorpe in a bid to further reduce emissions, Kallanish learns.

The company notes that while electrification of the steelmaking process will reduce emissions of carbon dioxide by more than 75%, it is exploring routes for additional reductions. This includes the development of technologies for capturing CO2 generated by other parts of its manufacturing operations.

As part of this, a mobile carbon capture pilot plant has been installed at its Central Power Station in Scunthorpe. The plant has been developed by the University of Sheffield and will be used to extract carbon from the power station’s boiler flue.

Andy Trowsdale, British Steel’s head of research and development, says: “This project is all about testing the capabilities of the technology. If it works for us, and others, it could be scaled-up and play an important role in carbon capture, utilisation and storage.”

“The trial, which has been approved by the Environment Agency, will demonstrate the technology’s potential,” he adds.

The project by University of Sheffield aims to enable the use of waste gases from manufacturing industries to generate an alternative source of carbon for consumer products.

The technology being used in the carbon capture system does not use environmentally hazardous chemicals and is much cheaper and smaller than other carbon capture technologies. The CO2 captured at British Steel will be bottled in gas cylinders, transported to the University of Sheffield and converted into synthetic transport fuels.

Carrie Bone UK

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Volkswagen mulls at least three German plant closures

German automaker Volkswagen (VW) is planning to close at least three plants in Germany as part of cost-cutting measures, according to Volkswagen works council chief Daniela Cavallo.

Volkswagen said last month it was considering closing factories in Germany amid fierce competition and falling electric vehicle (EV) sales – a move severely criticised by labour unions. As such, the company has been negotiating with unions for weeks for a new labour agreement.

On Monday, Cavallo told employees at a meeting at Volkswagen’s Wolfsburg headquarters that the automaker plans to cut “tens of thousands” of jobs and slash pay by 10%. She added that all VW plants in Germany will be affected, with the management planning cuts at other sites.

“The board is also planning to downsize all remaining plants in Germany,” Cavallo said, according to a statement seen by Kallanish. “In concrete terms, this means taking out even more products, volumes, shifts and entire assembly lines far beyond to what we have already done.”

She emphasised: “All German VW plants are affected by this. None of them are safe!”

The works council head, however, did not specify which plants would be shut. The company currently has ten plants in Germany, employing a total of 120,000 workers.

In a statement on Monday, Volkswagen reiterated the “urgent need for comprehensive restructuring measures” to make the company “sustainably competitive”.

“We have to get to the root of the problems: we are not productive enough at our German sites and our factory costs are currently 25% to 50% above target,” explains Volkswagen Passenger Cars chief executive Thomas Schäfer. As a result, some of the company’s German plants are twice as expensive as its competitors, particularly due to high labour costs.

“In addition, we at Volkswagen are still handling many tasks internally that our competitors have already outsourced to reduce costs,” Schäfer adds. “This means that we cannot continue as before. We have to promptly find a joint and viable solution for the future of our company.”

Cavallo also called on the German government to come up with a “master plan” to support the German industry. “They [politicians] need to wake up,” she added. “It is not enough just to say that they stand by the VW workforce. We need action! We need a comprehensive plan from politicians on how to finally get BEV [battery electric vehicle] mobility flying.”

While German economy minister and vice-chancellor Robert Habeck said last month the government was mulling ways to support the struggling carmaker, he noted that “a large part of the tasks have to be dealt with by Volkswagen itself”.

European carmakers have been struggling amid high production costs, severe competition, and stagnating EV demand in major EV markets. Last month, Volkswagen lowered its 2024 outlook, citing a “challenging market environment and developments that have fallen short of original expectations.” If the plant closures go ahead, it would mark a first in Volkswagen’s 87-year history.

Volkswagen’s first round of negotiations with unions on 25 September ended after three hours. A second round of negotiations is set to take place on Wednesday. The period to refrain from industrial action will end on 30 November.

Reethu Ravi UK

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