Spain’s Network Steel upgrades pre-painted coil mill
Spanish coil processing company Network Steel (NS) will replace two gas reheating furnaces at its Coated Solutions plant in Aranda del Duero, Kalllanish learns from the company.
The unit’s equipment upgrade will start in September and will last one month. The investment is valued at €2.5 million ($2.73m).
“The project includes the replacement of the furnaces for the special steel production with new generation technology. The new ones will improve the plant’s efficiency and reduce gas consumption,” the company says.
After the modernisation, the Aranda Coated Solutions (ACS) subsidiary will increase its production capacity by 30,000 tonnes/year to 130,000 t/y of pre-painted coil.
During the upgrade, operations at the plant will be temporarily halted, although the closure will not affect employees and there will be no layoffs, NS confirms.
“Negotiations are underway with workers about the possibility of collective holidays or making up the hours not worked at a later date. There will be no temporary layoff scheme (ERTE),” the company explains.
Todor Kirkov Bulgaria
HRC market seasonally quiet in Europe; post-summer price direction unclear
Offers from an integrated supplier in the Benelux area for August-September delivery were reported at €640-650 ($697-708) per tonne ex-works, while HRC with fourth-quarter lead times was offered higher at €660 per tonne ex-works.
One German mill was quite aggressive, offering coil with a four-week lead time at €625-630 per tonne ex-works.
But sources believed it was still possible to get €620 per tonne ex-works from most suppliers for August-September delivery coil in the case of a firm bid.
Target offers levels for after the summer break were voiced at €670 per tonne ex-works or delivered by leading European suppliers, Fastmarkets heard.
Fastmarkets calculated its daily steel HRC index domestic, exw Northern Europe at €628.13 per tonne on Thursday, up €0.38 per tonne from €627.75 per tonne the previous day.
The index was down by €4.37 per tonne week on week and also by €4.37 per tonne month on month.
But the likelihood of a price rebound after the summer holiday period remained uncertain, according to sources.
Some suggested that lower imports as a result of new safeguard measures and reduced output domestically following longer summer stoppages, could support a rebound in price.
“The imbalance between supply and demand continues. Some mills will prolong the holiday period hoping this will improve the imbalance and create more demand,” one buyer source in the Benelux area told Fastmarkets.
But others remained skeptical, claiming that the new safeguards and slightly lower domestic availability would not be enough to drive an HRC price rise while demand remains low.
“To make the difference in demand and supply, we should see mills taking out blast-furnaces – like they did in [the fourth quarter of 2023]. Longer summer stoppages at some suppliers will not be enough,” a distributor in Germany said.
“As for the new safeguards – the effect will not be immediate. It will take the market half a year or even more to clear [import HRC ] tonnages which are currently in the pipeline,” the distributor added.
In Southern Europe, Fastmarkets calculated its daily steel HRC index domestic, exw Italy at €620.42 per tonne on Thursday, down by €0.21 per tonne from €620.63 per tonne on Wednesday.
The index was down by €5.83 per tonne week on week and by €9.16 per tonne month on month.
August-September delivery HRC from a local mill was heard offered at €640-650 per tonne delivered (€630-640 per tonne ex-works).
Buyer estimates of tradable prices were around €600-620 per tonne ex-works.
In the secondary market, 3-6mm HR sheet was still heard to be trading in the range of €710-730 per tonne CPT, broadly stable over the past seven days.
The market for overseas coil remained quiet, with most buyers holding back due to either looming risks related to new EU import safeguards or uncompetitive prices for import HRC.
Offers from Asia were limited.
Vietnam-origin coil was heard offered at €620 per tonne FCA Antwerp, but lead times were reported to be in Janaury 2025.
Buyer estimations of tradeable values for Asia-origin coils were no higher than €550-570 per tonne CFR, but no such offers were reported.
Offers of HRC from Turkey were available at €610 per tonne CFR to Italy, including the anti-dumping duty.
Published by: Julia Bolotova
Steel hollow sections prices narrow downward in Europe amid summer slowness
“The market slowed down not only because of the [summer] holidays,” a trader told Fastmarkets. “It has been quiet for weeks.”
Fastmarkets’ monthly price assessment for steel sections (medium) domestic, delivered Northern Europe was €750-775 ($819-847) per tonne on Wednesday, narrowing downward by €15 per tonne from €750-790 per tonne on June 19.
Similarly, Fastmarkets’ monthly price assessment for steel sections (medium) domestic, delivered Southern Europe was €750-775 per tonne on Wednesday, narrowing downward by €15 per tonne from €750-790 per tonne on June 19.
But a second trader said demand had increased slightly in the past two weeks due to low stocks and reduced production.
Meanwhile, hot-rolled coil feedstock prices fell over the month, with trade slow due to the summer holiday period. HRC market participants also shared concerns around slow end-user demand and low order intake from key end-user sectors.
Fastmarkets’ daily calculation of its steel hot-rolled coil index domestic, exw Northern Europe was €627.75 per tonne on Wednesday, down by €6 per tonne from €633.75 per tonne a month earlier.
Published by: Holly Chant
Steel beams prices in Europe unchanged; mills make higher offers
Fastmarkets’ monthly price assessment for steel beams, domestic, delivered Northern Europe was €720-760 ($787- 830) per tonne on Wednesday, stable from the assessment on June 19.
Fastmarkets’ monthly price assessment for steel beams, domestic, delivered Southern Europe was €720-760 per tonne on Wednesday, also flat month on month.
One trader told Fastmarkets that producers had announced higher offers, but prices remained steady due to a lack of orders amid slow demand.
“The summertime, vacations and so on reduce the speed [of trade in the market] as well,“ the trader added.
Traditionally, production and trade slows during the months of July and August due to summer holidays and seasonal mill maintenance, but consumption downstream has weighed on prices and trading for much of the year.
Fastmarkets’ calculation of its daily index for steel scrap HMS 1&2 (80:20 mix) North Europe origin, cfr Turkey was $386.61 per tonne on Wednesday, up $6.30 per tonne month on month from $380.31 per tonne.
Published by: Holly Chant
EU long steel prices stay unchanged amid muted activity
The Northwest European market for rebar and medium sections remained unchanged in the week ended July 17, as activity in the market remained limited due to summer holidays in most European countries.
“Market is quiet,” a distributor source said. “A lot of people are away next week due to holidays.”
Sources said that demand from the construction sector has remained stable, however, some delays are expected due to the weather.
“Construction demand is stable,” the source said. “However, there may be some delays due to the weather.”
Platts assessed the price of Northwest European rebar stable on the week at Eur615/mt ex-works.
Tradable values were heard at Eur615/mt EXW Benelux.
Meanwhile, Platts assessed the price of European medium sections stable on the week at Eur750/mt delivered Benelux.
Workable levels were reported at Eur740-750/mt delivered Benelux.
European HRC prices hold largely stable amid weak demand, excess supply
“Demand is very anemic,” a mill source said. “I think we will have to wait two to three weeks for prices [to rise].”
Market sources have also said that in southern Europe, the holiday season is in full effect and will likely be prolonged for more than usual given the struggling nature of the market.
“People are not looking for material,” a trader said.
For imported HRC, while prices from Asia-Pacific remain attractive, sources have noted that when the import quotas and rising freight rates are taken into account, prices are not far off from domestic European prices.
Platts assessed Northwest European HRC at Eur620/mt ex-works Ruhr July 17, down Eur5 on the day.
Meanwhile, Platts assessed domestic HRC prices in Southern Europe stable on the day at Eur625/mt ex-works Italy July 17.
Platts is part of S&P Global Commodity Insights.
Hyundai Steel expands green automotive steel in EU
Korean steelmaker Hyundai Steel has signed memoranda of understanding (MOUs) with Czech auto parts producer Tawesco and Italian automotive steel processer Eusider to supply carbon-reduced steel sheets. The steelmaker is expected to start testing lower emission steel parts with these customers this September.
Steel materials suppliers of European automobile makers with carbon neutrality targets, such as Volkswagen and Stellandis, Tawesco and Eusider, need to source low-carbon emission resources to meet clients’ demand. The carbon border adjustment mechanism (CBAM) on imports to EU will be implemented in 2026.
Hyundai Steel is investing in low-carbon steel sheet production facilities at its Dangjin Steel Mill. It plans to build a liquefied natural gas (LNG) power plant at this plant and switch to electric arc furnace (EAF) steelmaking (see Kallanish passim). This company defines its reduced carbon steel sheet as having a 20% carbon emission reduction compared to blast furnace products.
The steelmaker also signed an MOU with the German car parts maker Kirchhoff Automotive this May to sell low-carbon steel products, including cold-rolled and hot-dip galvanized coils. It intends to establish low-carbon emission automobile steel sheets sales network by collaborating with these European car parts makers.
Legal firm confirms Spanish solar components import misdeclaration
Spanish steel association Unesid has received legal support in its complaint against unfair import practices and domestic economy impact from Chinese-origin solar components imports that are being misdeclared as steel welded tube and profiles.
Some suppliers declare these components as having perforations to circumvent EU regulations for steel imports. Duty paid on tubes and profiles amounts to 25% when import quotas are exceeded, Kallanish notes.
“The legal report carried out by the firm Andersen Tax & Legal confirms this breach of current customs regulations, which Unesid has been denouncing for months, as well as the fact that companies engaged in this practice evade the payment of safeguard duties that have been established by the European Commission since 2018,” the association says.
Unesid has already submitted a formal complaint with the results of the report to the Customs Department of the Spanish Tax Agency, as well as informed the Ministry of Trade and Industry, and competent authorities in the European Commission, including the European Anti-Fraud Office (OLAF).
Chinese-origin entries of the products for the photovoltaic energy sector reached 27,000 tonnes in January-April, Spanish Tax Agency trade data show. These entered the country at an average price of €952/tonne, a value more similar to that of steel tubes than to solar power system components, Unesid observes.
Todor Kirkov Bulgaria
Italian wire rod makers consider increasing prices
Despite ongoing subdued consumption, sales in July are reported to have improved compared to the quiet month of June. During the second quarter, some sellers experienced a decrease in volumes by approximately 10-15% compared to the previous year. However, there has been a slight recovery in demand reported this month. Agents and sales executives are confident in their ability to achieve their targets.
Buyers are making regular purchases, but values have decreased in July. Italian mills will be taking longer breaks during the summer months, following production stoppages in July.
Imported material from North Africa does not offer a significant cost advantage compared to domestic options. Drawing-quality rod is being sold at €610-630/t delivered for domestic product, although material from stock that can be delivered quickly is still marketed for €640/t delivered.
Meanwhile, northern European wire rod prices were stable last week amid a quiet market in Europe. The stable trend from past months continues, despite the push from suppliers to increase quotes and the summer construction season being in full swing. Domestic transaction prices for drawing-quality wire rod are at €650/t ex-works and mesh-grade wire rod is at €630/t (see Kallanish passim).
Natalia Capra France
HRC buyers in Europe see no room for price rebound
Fastmarkets calculated its daily steel hot-rolled coil index domestic, exw Northern Europe at €627.75 ($683.76) per tonne on Wednesday, down by €3.50 per tonne from €631.25 per tonne on Tuesday.
The index was down by €3.92 per tonne week on week and by €6.00 per tonne month on month.
Mills in the region could offer HRC with lead times of around four to five weeks, indicating weak order books, sources said.
Official offers from suppliers in Germany and the Benelux region were heard at €640-650 per tonne ex-works or delivered, with an aim of €670 per tonne ex-works or delivered for September already voiced by some German suppliers.
Buyer’s estimations of tradeable prices for HRC in the region were €620-630 per tonne ex-works.
Trading in Northern Europe was persistently slow, partially due to the vacation season, sources said.
“In the south of Germany, people have already started vacations,” a buyer in the Benelux area said.
Meanwhile, buyers felt no rush to restock amid insufficient demand from end users.
“The market is dead. Mills are happy if somebody calls [to buy HRC],” a buyer in Germany said.
Despite talk of a potential post-summer price rise, industry sources were largely skeptical about a price rebound, considering slow end-user demand and low order intake from the key end-user sectors.
Meanwhile, in Southern Europe, Fastmarkets calculated its daily steel hot-rolled coil index domestic, exw Italy at €620.63 per tonne on Wednesday, up by €0.63 per tonne from €620.00 per tonne on Tuesday.
The index was down by €8.12 per tonne week on week and by €10 per tonne month on month.
A local integrated supplier was heard offering HRC with lead times of four to five weeks at €640-650 per tonne delivered (€630-640 per tonne ex-works), with transactions heard at €630 per tonne delivered (€620 per tonne ex-works).
Lower bids reported by buyer sources at €610-620 per tonne delivered (€600-610 per tonne ex-works) were said to not be accepted by sellers.
“I imagine that such a low price [€610-620 per tonne delivered for HRC] would be possible for big tonnages, like 5,000 tonnes or more. But nobody is booking such large lots these days,” a buyer in Italy said.
The Italian market for HRC coil was largely quiet.
From Turkey, offers were heard at €600-610 per tonne CFR, including the anti-dumping duty.
From India and Saudi Arabia, offers were heard at €590-605 per tonne CFR.
Two buyers reported an offer at €580 per tonne CFR from Vietnam.
Buyers’ estimations of tradeable prices for imports were heard in the range of €560-580 per tonne CFR.
An Australian cargo of HRC was booked at €580 per tonne CFR to Italy in mid-July, Fastmarkets reported.
Published by: Julia Bolotova
