Duferco to produce green hydrogen at Sicilian plant
Italian sections producer Duferco is investing in hydrogen to decarbonise the steelmaking process at its plant near Messina, Sicily.
Funded by the national post-Covid recovery plan, PNRR, through the Region of Sicily, Duferco, in partnership with Caronte and Nippon Gases Italia, will build a green hydrogen production facility with an annual output of 100 tonnes. The plant will be powered by a 4 megawatts photovoltaic plant and will have a 1MW electrolyser.
The overall investment will be €10 million ($10.8m), including €7.5m injected by the regional authority thanks to the PNRR. The hydrogen produced will feed not only the steel mill but also other companies in the area.
“The Hydrogen Valley in Sicily will contribute to achieving one of the main European objectives in the energy transition as envisaged by RePowerEU … The energy transition will only be a concrete challenge if it leads to employment and economic development. Otherwise, the risk is that it remains an overly ambitious mission,” Duferco chief executive Antonio Gozzi comments in a note sent to Kallanish.
Other steel producers are investing in hydrogen technology for clean energy. Steel equipment maker Tenova, in partnership with Italian energy companies De Nora, Snam and other European steelmakers, is working on the “hybrid technologies for sustainable steel reheating” (HyTecHeat) project. Funded by the European Commission for a budget of about €3.3m, HyTecHeat will test hybrid heating technologies based on natural gas, with a progressive increase of hydrogen up to 100%, for downstream processing (see Kallanish 4 March).
Natalia Capra France
Downtrend persists in European HRC market; production cuts said necessary to balance supply/demand
“When we talk about [HRC] trading these days, it is mainly 100 tons here and there. But basically, nobody is buying,” a buyer in Germany said.
Most buyers’ estimates of tradeable prices were reported at €700-720 ($760-781) per tonne ex-works on Wednesday, while offers were heard in the range of €720-730 per tonne ex-works from integrated mills and €690-700 per tonne ex-works from a re-roller in the Benelux area.
“Any price we mention is very theoretical because there is no trading. The main point is not the price; the main point is demand, which is nonexistent at the moment,” a second buyer in Germany said.
Most suppliers in the region were heard offering April-May delivery for HRC.
As a result, Fastmarkets calculated its daily steel HRC index, domestic, exw Northern Europe at €712.65 per tonne on Wednesday, down by €1.60 per tonne from €714.25 per tonne on Tuesday March 5.
The index was down by €3.39 per tonne week on week and by €46.93 per tonne month on month.
Market sources described reducing output as the only viable option for European mills to stop the price downtrend.
“Output cuts are inevitable. The sooner mills do it, the better, because the effect on markets and prices will be delayed anyway,” a steel service center source in the Benelux area said.
“Mills should accept the situation and reduce capacity,” a trading source in the region said.
Meanwhile, in Southern Europe, Fastmarkets’ steel HRC index, domestic, exw Italy was calculated at €689.38 per tonne on Wednesday, down by €3.59 per tonne day on day from €692.97 per tonne.
The index was down by €22.50 per tonne week on week and by €63.12 per tonne month on month.
HRC offers in Italy were mainly heard at €700 per tonne delivered (equivalent to €685-690 per tonne ex-works), while some industry sources said that €690 per tonne delivered (€675-680 per tonne ex-works) was also achievable on bigger volumes.
A domestic supplier was said to be offering April-delivery HRC.
Tradable prices for HRC in Italy were mainly reported in the range of €680-690 per tonne ex-works.
Trading remained thin despite significant price decreases in the domestic market over the past few weeks, and most buyers were still postponing restocking, sources said.
“We do not need to buy [HRC], we have enough stock to wait for a few more weeks,” a steel service center source said.
And there is still room for the price to decline in the domestic market, most industry sources said. Some buyers claimed they expect HRC to hit €650 per tonne ex-works, indicating they would consider restocking at this price.
In the secondary market, 4mm HR sheet was heard traded no higher than €760-780 per tonne CPT, compared with €780-800 per tonne CPT heard in late February.
Trading in the secondary market recovered slightly in early March because some buyers needed to restock, but it was not enough to support a price rebound, some industry sources said.
Import HRC offers from Asia were consolidating around €600-620 per tonne CFR, but buying interest has remained low, Fastmarkets understands.
Most overseas suppliers were heard offering May-shipment HRC, which would mean June-July arrival.
Weak demand, cheap imports push down European CRC, HDG prices
In the CRC market, offers from European producers were few, sources said.
“The gap between local and import CRC prices is over €100 ($109) per tonne; European mills cannot compete with overseas suppliers,” a buyer in Italy said.
European mills in the south were trying to “protect” the level of €800-810 per tonne delivered (€790-800 ex-works), claiming it was near the cost line for them, according to sources.
Buyers estimated tradable prices for CRC in Southern Europe at €780-790 per tonne ex-works.
As a result, Fastmarkets’ price assessment for steel cold-rolled coil domestic, ex-works Southern Europe was €790-800 per tonne on Wednesday, down by €10-20 per tonne from €800-820 per tonne on February 28.
Activity, however, was close to nil, sources said.
“The CRC market has been chronically depressed lately. Firstly, there is no demand [from end-users] and no rebound of demand in sight. Secondly, there are much cheaper import options with little [safeguard] quota risks,” a buyer in Spain said.
Sources agreed that competitive offers from overseas suppliers were also dragging European prices downward.
Offers for South Korea- and Taiwan-origin CRC with May shipment were reported at €720 per tonne CFR to Southern Europe during the assessment week. Three sources, however, reported that one Korean supplier had reduced its offers to €705 per tonne CFR in the week commencing March 4.
CRC offers from Japan and India were heard at €700-725 per tonne CFR to Southern Europe.
Fastmarkets’ weekly assessment for steel cold-rolled coil import, cfr main port Southern Europe was €705-725 per tonne on Wednesday, down by €10-15 per tonne from €720-735 per tonne seven days earlier.
HDG
Fastmarkets’ price assessment for steel hot-dipped galvanized coil domestic, ex-works Southern Europe was €810-820 per tonne on Wednesday, down by €10-20 per tonne from €820-840 per tonne seven days earlier.
Offers from suppliers in Southern Europe were reported at €820-825 per tonne ex-works during the week, while buyers’ estimations of achievable prices were heard at €800-810 per tonne ex-works.
Demand for HDG was also thin, however, the impact of cheaper imports was not as significant as that for CRC, Fastmarkets heard.
“Import HDG suppliers cannot supply the full range of grades and dimensions required by European buyers, so HDG is largely being procured in Europe,” a second buyer in Spain said.
“[A] lack of demand remains the key issue. Prices are sinking lower, but nobody’s buying because there is a perception that rock bottom has yet to be reached,” a buyer in Italy said.
“There are a lot of concerns regarding the end-user demand. Nobody wants to procure [HDG] now. On the contrary, there is destocking,” he added.
Offers from Vietnamese and Indian suppliers of 0.5mm HDG with Z100-120 coating were reported at around €800-805 per tonne CFR to Southern Europe during the assessment week.
Overseas suppliers were said to be offering May shipment.
EU imports largest China-origin steel tonnage since 2016
China-origin HS chapter 72 iron and steel imports into the EU increased 8% on-year in 2023 to 3.77 million tonnes, the highest tonnage since 2016, according to Eurostat data.
Intake of slab from China surged 70% last year to 624,051 tonnes (see separate story). Imports from China of HS code 7214 bar jumped 84% to 450,227t, of which rebar comprised 131,225t. Intake of carbon steel wire rose 26% to 187,924t, whereas imports of alloy steel wire surged 96% to 145,022t, Kallanish notes.
Imports of HS code 7210 coated flat steel remained the largest category, but at 1.01mt they were down 1% versus 2022. Tinplate accounted for 527,913t, while hot-dip galvanized coil intake was 436,019t.
Intake of HS code 7225 other alloy flat steel, including some electrical steel, was down 20% to 296,178t, while imports of HS code 7228 other alloy bars and rods were flat at 535,192t.
The main EU shipment destination for Chinese steel in 2023 was Italy, which increased intake versus 2022 to 1.69mt. Belgium came next despite intake declining 14% to 651,619t, while Spain was third with 296,518t, up 4%. Notably, Poland increased intake of Chinese steel by 88% last year to 237,350t.
Adam Smith Poland
HRC prices inch lower in Europe; rock bottom not yet reached: sources
Trading has been sluggish across Europe for the past few weeks, with buyers abstaining from restocking in a declining market, Fastmarkets understands.
“Buyers are waiting for [HRC] prices to drop more and therefore do not go after orders now,” a mill source said.
To secure orders, European mills have cut offers for April-May delivery HRC to around €720-750 ($781-814) per tonne ex-works, compared with the target range of €780-820 per tonne ex-works in January, market sources said.
But this cut in offers has not resulted in better buying, Fastmarkets understands.
Buyers estimated achievable levels at €700-730 per tonne ex-works on Tuesday, but “there were very few tonnages actually being traded at these prices,” a buyer source told Fastmarkets.
“Trading is very slow. I think we will see limited restocking in early April at best,” a distributor said.
Sources suggested that producers might consider reducing output to balance supply and demand, but mills have made no official announcements yet.
As a result, Fastmarkets calculated its daily steel HRC index, domestic, exw Northern Europe at €714.25 per tonne on Tuesday, down by €0.75 per tonne from €715.00 per tonne on Monday March 4.
The index was down by €4.71 per tonne week on week and by €45.75 per tonne month on month.
Meanwhile in Southern Europe, Fastmarkets’ daily steel HRC index, domestic, exw Italy was calculated at €692.97 per tonne on Monday, down by €1.03 per tonne from €694.00 per tonne on the previous day.
The index was down by €22.03 per tonne week on week and by €59.53 per tonne month on month.
HRC offers in Italy were mainly heard at €700 per tonne delivered, equivalent to about €685-690 per tonne ex-works.
“Even though we expected [HRC] prices to hold at €700 [per tonne ex-works], this line has been crossed, yet demand didn’t improve [after the price drop]. Demand is the main problem,” a distributor in Italy said.
Tradable prices for HRC in Italy were in the range of €680-700 per tonne ex-works, market sources said.
Offers were also sliding further in the import market, but European buyers were cautious with overseas bookings due to long lead times (June-July delivery) in a highly volatile market.
Import offers from Vietnam and Taiwan to Italy were heard at €610-620 per tonne CFR.
Similar offer prices were heard from India and Egypt.
Turkey-origin HRC was reported to be the most expensive, with offers at €670 per tonne CFR, including the anti-dumping duty.
Most overseas suppliers were heard offering May-shipment cargoes.
Thyssenkrupp starts electrical steel slitting line in Italy
Thyssenkrupp Steel has commissioned a new slitting line in Motta Visconti, Italy, Kallanish learns from the steelmaker. The line, replacing an existing one that is more than 30 years old, is part of the company’s investment in electric mobility, and enables production of high-efficiency electrical steel for the automotive industry.
The new line can slit up to 500 metres of material per minute, and will allow tk Steel to double production capacity for electrical steel at the Motta Visconti plant. Above all, it is designed to cut very demanding, particularly thin electrical steel – starting from a thickness of 0.20mm. This material is processed further in lamination stamping shops, and ultimately installed in high-performance traction motors for electric vehicles.
The line is able to produce NO25, which, with a thickness of 0.25mm, is characterised by excellent magnetic properties, according to tk Steel. These include a guaranteed magnetisation change loss of just 12.5 W/kg, a core loss that is an important property of electrical steel strip. This is influenced by the sheet thickness, the alloy and the production process of the material. It determines how efficiently a motor utilises electrical energy and converts it into rotational energy.
Christian Koehl Germany
Ireland stockholder eyes galvanizing line
Ireland-based steel stockholder Hibernia Steels Products is investing into a 36,000 tonnes/year hot-dip galvanizing line near Drogheda. The firm has received planning permission for the project but will need to wait 12-18 months until any potential appeals have been concluded before starting construction.
The firm is making the investment as it has identified a supply shortage in Ireland of galvanized steel, which increases the lifespan of steel and therefore reduces carbon emissions from steelmaking, Hibernia tells Kallanish.
The firm supplies the construction and machinery sectors, among others, with beams, merchant bar and hollow sections. It trades some 40,000 tonnes/year of steel and processes a further 7,000 t/y, a number that it aims to grow to 15,000 t/y. As well as processing its own steel, it subcontracts fabrication services to customers. Steel is sourced mainly from EU mills.
Adam Smith Poland
Italy appoints two more commissioners for insolvent ADI
Acciaierie d’Italia (ADI) has been declared insolvent by the Milan tribunal due to “an absence of liquidity”, a tribunal document says. This officially triggers the procedure of special administration initiated last month and allows the state to inject into the company the necessary funds to guarantee production continuity.
Last month, the Italian government placed ADI into extraordinary administration, thereby passing control of the company from ArcelorMittal and Invitalia to government-appointed commissioners, headed by Giancarlo Quaranta. Two more commissioners have been appointed to share the task with Quaranta, corporate governance specialist Giovanni Fiori and president of NE Nomisma Energia Davide Tabarelli, Kallanish learns from Italy’s Ministry of Enterprises and Made in Italy (MIMT).
Authorities are actively seeking private investors for ADI after Prime Minister Giorgia Meloni said authorities intend to avoid nationalising the troubled steelmaker. They are rumoured to be in talks with local steelmaker Arvedi, but also with Metinvest and Jindal Steel subsidiary Vulcan Green Steel, informed sources say.
While Arvedi is not commenting on its potential involvement with ADI, Metinvest has stated its interest. The company is currently supplying Taranto with raw materials and sourcing slab from Taranto for its Italian rolling mills. Almost all local steelmakers and large steel processors have also been contacted by the government about investing.
ADI sold 2.5 million tonnes of steel in 2023 and currently has 1mt of steel in stock, including raw materials and finished products. It produced about 3mt of crude steel last year. At Taranto, ADI is producing using only blast furnace No.4, which was idled on 21 February for maintenance for 24 hours (see Kallanish passim).
Natalia Capra France
European HRC prices decrease further; buyers expect mills to trim output
Mills in Northern Europe kept their official offers in the range of €730-750 ($791-813) per tonne ex-works, but they still gave discounts on firm bids, Fastmarkets heard.
Demand for HRC remained sluggish; buyers continued to postpone restocking, waiting for further price drops, market sources said.
No major deals were heard in the market.
Sources estimated tradable prices in the range of €700-730 per tonne ex-works.
Fastmarkets calculated its daily steel HRC index, domestic, exw Northern Europe at €715 per tonne on Monday, down by €0.50 per tonne from €715.50 on Friday March 1.
The index was down by €3.75 per tonne week on week and by €46 per tonne month on month.
Mills might have to cut output to stop the downtrend in prices, several buyer sources in Germany said.
“Demand is unlikely to rebound [soon],” one German buyer source said.
Mills would probably need to cut production due to low demand and falling prices, a buyer source from the Benelux area said.
“But [trimming production] will not happen immediately because some mills have just restarted operations. They will need a few months or even half a year to take such a decision,” the buyer source added.
Several European steelmakers restarted blast furnaces in early 2024 that were idled in late 2023, Fastmarkets reported previously.
In Southern Europe, Fastmarkets’ daily steel HRC index, domestic, exw Italy was calculated at €694.00 per tonne on Monday, down by €13.92 per tonne from €707.92 per tonne on March 1.
The index was down by €21.50 per tonne week on week and by €61 per tonne month on month.
In Italy, HRC offers were heard mainly at €700 per tonne ex-works and some buyer sources reported even lower offers at €680-690 per tonne ex-works.
But other industry sources could not confirm that offers below €700 per tonne ex-works were widespread in the spot market.
According to Fastmarkets’ sources, these lower prices might be offered to clients such as big stockholders and steel service centers for more significant tonnages.
“I cannot say prices below €700 [per tonne ex-works] are widely available in the spot market now, but we are moving in that direction,” a distributor in Italy said.
Tradable prices for HRC in Italy were in the range of €680-700 per tonne ex-works, market sources said.
Import offers from Vietnam to Italy with May shipment and end-July delivery were heard at €610-620 per tonne CFR.
Similar offers were heard from Egypt for June-delivery material.
India was also offering HRC at similar prices, but the country’s utilization of EU’s import quotas was uncertain, because European buyers have already purchased significant quantities from India, Fastmarkets heard.
Sales of India-origin HRC for first- and second-quarter delivery to Europe amounted to more than 850,000 tonnes, according to buyer estimates.
The EU’s January-March import allowance for India-origin HRC was 574,440 tonnes, including 279,777 tonnes rolled over from the last quarter of 2023. The April-June import allowance was 294,662 tonnes.
Published by: Julia Bolotova, Darina Kahramanova
EU provides €3m for redundant German Vallourec employees
The European Commission has proposed to support 835 workers dismissed in the German steel industry with €3 million ($3.3m) from the European Globalisation Adjustment Fund for Displaced Workers (EGF).
In November 2023, Germany applied for EGF funding to help the workers dismissed by steel tubes producer Vallourec, after the company decided to close its German tube mills to move production to Brazil.
The support includes guidance, such as counselling and vocational orientation, job search assistance like job scouting or participation in job fairs, as well as training offers, Kallanish learns from a Commission bulletin. Former workers can also receive funding of up to €22,000 for starting their own business. They can receive allowances when they participate in support measures such as training courses, and bonus payments or salary top-ups when they start a new job.
The total estimated cost of the measures is about €5 million, of which the EGF will cover 60%, or €3m. The remaining 40%, or €2m, will be financed through the German federal budget and the German Public Employment Service.
EGF support is available for people affected by all types of unexpected major restructuring events, including the economic effects of Russia’s invasion of Ukraine and other sources of geopolitical instability. Also included are larger economic trends like decarbonisation and automation. Member states can apply for EU funding when at least 200 workers lose their jobs within a specific reference period.
Christian Koehl Germany
