Category: Latest Updates

Um in Zukunft wieder Flexibilität für Kapitalerhöhungen zu gewinnen, soll in einer außerordentlichen Generalversammlung, bei der die Aktionäre durch einen unabhängigen Stimmrechtsvertreter vertreten werden, beabsichtigt der Schweizer Stahlkonzern den Nennwert der Aktie von derzeit 0,30 CHF auf 0,15 CHF zu reduzieren.

Außerdem beantragte der Verwaltungsrat die Änderung des Namens der Gesellschaft von SCHMOLZ + BICKENBACH AG in “Swiss Steel Group AG”. Im Rahmen des umfassenden Transformationsprozesses, den das Unternehmen derzeit mit aller Kraft vorantreibt, ist es unerlässlich, dass sich diese Änderung auch in der Marke und im Namen des Unternehmens widerspiegelt. Ein neuer Name signalisiert einen Neuanfang und eine klare, zukunftsgerichtete Positionierung sowie die Ziele und den Beitrag an die Gesellschaft als starkes Unternehmen mit Sitz und Börsennotierung in der Schweiz.

Quelle und Vorschaufoto: SCHMOLZ + BICKENBACH AG

Autor: von Hubert Hunscheidt

The European hot-rolled steel coils market surged higher Sept. 7, as returning demand and a lack of import alternatives drove prices higher, sources told S&P Global Platts.

The Platts TSI hot-rolled coil index was calculated Sept. 7 at Eur468.50/mt ($553.81/mt) ex-works Ruhr, climbing Eur12.50/mt on the day.

Cold-rolled coil gained Eur5/mt from Sept. 4 and was assessed at Eur530.50/mt ex-works Ruhr.

In Southern Europe, HRC gained Eur11/mt on the day and was assessed at Eur460.50/mt ex-works South Europe, the highest since March 23.

A German service center source said domestic mills would continue to benefit from the absence of import offers.

“Prices are much higher if you want to secure volumes now, imports are higher and nobody wants to buy them due to the quota and Anti-Dumping duty risk — the price differential is not enough,” he said.

The source said HRC from imports was available at Eur480-485/mt CIF Antwerp and this was Eur100/mt higher from the market low seen in the second quarter.

After cutting capacities at the start of Coronavirus lockdowns some mills would now be looking to bring furnace output back to meet increased demand the source said, adding, “this will be a risk to the market going forward, in case they bring it back too quickly and it could derail the recovery in prices.”

A second German service center source said he was not fully convinced recent price increased would be sustainable.

“The mills always have the same style of behavior, I am not optimistic and will not be buying much as we will have to see if the real demand is there in the market – they are already talking about the next price increase which is too soon,” he said, adding that the market would require time to consolidate recent gains before moving higher.

“The mills will bring back massive capacities and can do this quickly however there remains unresolved issues in the automotive sector and increased political risk for no-deal BREXIT and the US elections also,” he said.

An Iberian-based stockholder said the market would soon be testing Eur500/mt in HRC.

“Imports are very limited and higher prices and I expect prices will move up further, I expect sales to improve as buyers did not book in June and July and are now desperate so they have to pay more.”

— Len Griffin

Italian car output lowered again in June after falling in May, Kallanish notes from local carmakers’ association Associazione Nazionale Filiera Industria Automobilistica (Anfia) preliminary data.

Total automotive production fell in June by a significant -39.4% compared to June 2019. In the first half of 2020 automotive output also fell by -39.6% on-year, the association says.

First-quarter output of 180,372 units and Q2 production of 91,043 units gave total H1 output of 271,415 units. In June passenger car output also fell by -64% on-year to 20,743 vehicles. H1 car output plunged by -56% compared to H1 2019 to 137,183 units.

Italy produced 115,160 light vehicles in H1, down -29.7% y-o-y, 18,989 trucks, down -41.2%, and 83 buses, down -9.2%, Anfia reveals.

In 2019 the country’s total output of vehicles including heavy transport was 914,826 units, of which 542,007 were passenger cars. This was down from 1.06 million units produced in 2018.

Italy has 23 production plants. By comparison, Spain has 17 plants, France 31 and Germany 42, Kallanish notes.

The European hot-rolled steel coils market climbed higher Sept. 4, with declining product availability a growing concern for buyers, sources said.

The Platts TSI hot-rolled coil index was calculated Sept. 4 at Eur456/mt ($537.90/mt) ex-works Ruhr, climbing Eur5.50/mt on the day.

Cold-rolled coil slipped back Eur2/mt from Sept. 3 and was assessed at Eur525.50/mt ex-works Ruhr.

In Southern Europe, HRC gained Eur2/mt on the day and was assessed at Eur449.50/mt ex-works South Europe, the highest since March 23.

In the UK, the Platts TSI hot-rolled coil index was assessed Sept. 4 at GBP 450-470/mt DDP West Midlands UK, rising GBP10/mt on the week.

The HRC shortage continued in the Italian market, while Italian mill Arvedi’s production remains impacted following a fire at the Cremona plant in August.

A ramp up of production has been delayed to the end of the week beginning September 7, according to sources.

A German-based mill source said prices were continuing to move up with mills offering HRC now at Eur480-500/mt EXW Ruhr, but that European prices were still lagging behind the global steel market, despite the recent hikes.

Although HRC imports are currently at European domestic levels with delivery times in January, the source said because of the anticipation of Europe prices increasing heavily, some buyers are saying they would be looking at import offers to secure volumes at the current price level.

An Italy mill source said there was panic in the market as buyers returning from vacation contend with higher prices and declining availability.

“There is panic in the market, its a disaster with such shortages in coils, there is a real shortage,” he said.

The mill source said RFQs had surged higher as buyers moved to secure product for October and November requirements, the source said, adding, “There was limited import bookings over the summer so there is a supply shortage now.”

While demand is pushing higher, any additional supply from steel mill furnace restarts will not reach the market until December and this will mean that the target of Eur500/mt for HRC will be possible.

— Len Griffin, Laura Varriale

Gebhardt Stahl, a maker of cold-rolled profiles used mainly in construction applications, is expanding its production site in Soest, Germany.

The company has rented 9,000m² from the premises of local company Kettler Freizeit, which has gone out of business. The move will enlarge Gebhardt’s production area to 26,000m². It has already acquired a new profiling machine to commence production in September. A second one will follow, to increase production gradually over time, Kallanish hears from the company.

It plans to mainly make specialised profiles to strengthen its position as a supplier for niche products, often bespoke elements used in architecture and interior design. It claims to be the European market leader in reinforcement profiles for plastic window frames and in air conditioning systems. The company says it has barely been impacted by the coronavirus pandemic and has continued working normally.

Gebhardt Stahl achieves an annual revenue of about €130 million ($146m) with a staff of 180. It operates two sites in Germany and one in Poland, and supplies to 55 countries, including Australia and New Zealand, it says. Last year, Dutch equity investor firm Bencis Capital Partners became a partner in Gebhardt.

European steel industry decarbonisation is inevitable, but the prohibitive cost of hydrogen steelmaking technology and energy means Poland will remain reliant on blast furnace steelmaking for years to come. This was the conclusion of the steel industry panel at last week’s European Economic Congress (EEC) in Katowice.

Tomasz Slezak, ArcerlorMittal Poland head of corporate governance & government affairs, head of energy & environment office, said the implementation of EU climate policy is happening too fast and not motivating non-EU mills to reduce carbon emissions.

Marek Frydrych, chief executive of Huta Czestochowa (HCz) lessee Sunningwell, however, said the EU carbon border tax must be implemented immediately. “We were offered slab earlier this year at the same price as an eastern mill was selling plate in Europe,” he observed at the event monitored by Kallanish. “If Huta Czestochowa didn’t exist today we would be flooded by Ukrainian and Russian imports.”

Carbon-free steelmaking technology is within reach, but this does not mean it will be implemented quickly, Slezak pointed out. “Maybe in the next two decades the technology will mature to the point it can be used by the EU steel industry, but this requires huge energy sources which don’t exist in the EU,” he commented. The estimated cost for producers is exponential. “Business will not be able to afford this without state support,” he added.

Ceo of Polish merchant coke producer Koksownia Czestochowa Nowa, Marek Serafin, meanwhile, said hydrogen technology will develop in the long term, but in the shorter term “…we have to learn to live with the existing technologies.” For electric arc furnace steelmaking to expand, you need a supply of electricity which is prohibitively expensive in Poland, he said, adding he does not see an immediate alternative to blast furnace steelmaking using coke.

Polish Steel Association (HIPH) head Stefan Dzienniak agreed, adding that although EAF steelmaking is on the rise, it is dependent on scrap which is in limited supply. He also said direct reduced iron technology is unlikely to take off in Europe, despite it being more environmentally friendly than coke-based steelmaking, because it is prohibitively expensive.

Frydrych pointed out that although HCz is an electric arc furnace mill using mainly scrap, 30% of its feedstock mix is still accounted for by iron ore products, making blast furnaces essential. He expressed concerns over potential energy shortages in Poland in the coming years and said HCz is therefore looking into establishing an incineration plant to generate electricity.

HCz’s ceo also said the shortage of young skilled workers is a serious issue in Poland’s steel industry. “If we’d want to commission a second line, I don’t know where we would get 200 extra workers from,” he lamented.

Die Stimmung unter den deutschen Autoherstellern und Zulieferern hat sich im August verbessert. Das hat die neueste Konjunkturumfrage des ifo Instituts ergeben. Von minus 68,3 Punkten im Juli stieg die Beurteilung auf minus 34,8 Punkte im August. „Im dunklen Keller geht ein Licht an“, umschreibt Klaus Wohlrabe, Leiter der ifo-Umfragen, die Situation. Die Erwartungen zum künftigen Geschäft fielen leicht auf plus 37,4 Punkte, nach plus 40,9 im Juli.

Die Exporterwartungen gaben ebenfalls etwas nach, auf 31,3 Punkte, nach 39,9 Punkten im Juli. Die Produktionspläne erreichten 48,4 Punkte, nach 49,4 Punkten im Juli. „Die Beschäftigungssituation bleibt angespannt, die Unternehmen planen weiter mit Personalabbau“, sagt Wohlrabe weiter. Die entsprechenden Erwartungen legten geringfügig zu: auf minus 48,3 Punkte, nach minus 51,7 Punkten im Juli.

Der Auftragsbestand hat sich gegenüber dem Vormonat verbessert. Der Indikator stieg auf plus 37,9 Punkte, nach plus 25,9 im Juli. Die Nachfrage hat sich im Vergleich zum Vormonat etwas verschlechtert, bleibt aber weiter auf hohem Niveau. Der Nachfrageindikator fiel auf 62,3 Punkte, nach 69,5 im Juli. „Hier spielen Nachholeffekte und die Mehrwertsteuersenkung sicherlich eine Rolle“, ergänzt Wohlrabe. Die Nachfrage wurde vor allem aus den Lagerbeständen bedient. Diese konnten merklich abgebaut werden.

Quelle: ifo Institut 

The European hot-rolled coil market paused for breath Sept. 2 with buyers increasingly concerned about declining metal availability, sources told S&P Global Platts.

The daily Platts TSI index for HRC Northern Europe slipped Eur2/mt lower on the day Sept. 2 to Eur449/mt ($531.17/mt) ex-works Ruhr, while CRC dropped by Eur2.50/mt to Eur526.00/mt ex-works Ruhr.

The Southern European HRC index gained Eur1.50 on the day to Eur446/mt ex-works S.EU.

Activity particularly in the Italian market picked up, with HRC buyers starting to look towards northern European mills to secure volumes.

An Italy-based steel service-center source said that the distribution sector has started to buy larger volumes and Italian suppliers would not meet the current spike in demand.

“The [supply] situation in Italy is quite dramatic, Ilva is only producing 3 million mt instead of 9 million mt,” the source said, adding he would be looking to buy from Northern European mills as the narrow regional spread between north and south would allow him to do so.

“There is some sort of sensationalism in the market with increasing offers,” said the source, adding that demand would be “sustainable” for now but that outlook into late Q4 would be difficult to predict.

A Benelux-based stockholder said he now expected consolidation in prices following sharp gains achieved in August.

“I am optimistic but think we will see stable prices for the next few weeks as customers look to assess the market and decide on strategies,” he said.

“We have seen incredible increases over the summer and now hearing lead times extending, everyone now knows that prices are higher and they will book fearful of further increases – this will add to the momentum for higher prices.”

The source said that customer RFQs were now back to presummer levels but that it would take a few more weeks to complete negotiations.

— Len Griffin, Laura Varriale

Severstal Distribution will deliver 30,000 tonnes of A600C “Armanorma” brand rebar for the construction of the Arctic LNG 2 liquefied gas plant, the steelmaker says. 

Armandorma is an alloyed rebar with a unique combination of strength and ductility, the firm claims. Its versatility makes it possible to reduce the consumption of rolled metal and unify the materials used, thus guaranteeing the reliability of the structure at a lower cost, it adds.

It is made from universal steel grade 20G2SFBA, Kallanish notes. It can be used in structures operating at temperatures down to -100°C and in areas with unstable water-saturated soil, Severstal Distribution observes. Armanorma ensures the safety of structures and is not prone to embrittlement after welding.

“We are glad that our partners are interested in reinforcing bars of the new generation of Severstal: armature of class A600C – Armandorma. Its mechanical properties meet modern technological requirements,” says Severstal Distribution head Timur Yudichev.

Parent company Severstal’s output of crude steel and steel products decreased in the second quarter to 2.81 million tonnes, down by -2% on-year (see Kallanish passim). Hot metal output decreased -3% each on-quarter and on-year to 2.33mt, following the short-term upgrades of blast furnaces No.1, No.4 and No.5.

Böllinghaus Steel, a producer of stainless steel long products, has expanded its presence in the Italian market by opening a sales office in Milan, Kallanish learns from the company.

“With our own branch in Milan, we are now creating the conditions for further growth and guaranteeing fast and reliable service,” says Böllinghaus chief sales officer Antonio Perea. The new office comes in addition to the company’s locations in Germany, Portugal and the USA. It also has a cooperation with Outokumpu in Scandinavia that was signed earlier this year.

Böllinghaus makes profiles/sections as well as bars at its own rolling facilities in Portugal, where it purchases billet from third parties. It has no stockholding distribution, with production all based on existing orders, a spokeswoman explains.

The company, founded 130 years ago, is headquartered in Hilden near Düsseldorf, but it has long stopped producing in Germany. It closed down its plant in nearby Remscheid in 2001, after it acquired a rolling mill in Vieira de Leiria, Portugal, in the 1990s.