EU distribution activity declines in May
Distribution activity for steel products dipped significantly during May, according to the latest data disclosed to Kallanish by regional distributors’ association EUROMETAL.
During the month shipments from European flat steel service centres dropped by -6.3% year-on-year. This pulled down the aggregated figure for the first five months of the year by -1.3%, again y-o-y.
Despite the slowdown in activity in May, the association notes that “… after some overstocking, mainly in coated products, stocks of EU steel service centres are slowly coming back to normal.”
Multi products distributors also saw distribution activity reduce slightly by -2% y-o-y in May. Sales during the first five months of the year are in line with last year’s figures for the sector, EUROMETAL says.
EUROMETAL begrüßt G20-Statement
EUROMETAL begrüßt das Bekenntnis der G20 für freie Märkte, wie der Verband heute in einer Erklärung mitteilt. Der internationale Verband der Stahlhändler sieht es demnach positiv, dass die G20-Staaten laut ihrer Abschlusserklärung weiterhin eine Verringerung der weltweiten Stahlüberkapazitäten anstreben und freie und faire Regeln unterstützen, um im internationalen Stahlhandel gleichberechtigte Wettbewerbsbedingungen zu schaffen.
In ihrer Abschlusserklärung plädieren die Staats- und Regierungschefs für einen “wechselseitigen und gegenseitig vorteilhaften Rahmen für Handel und Investitionen“. Zudem haben die G20 zum Abschluss des Gipfels bekräftigt, gegen “Protektionismus und unlautere Handelspraktiken” vorgehen zu wollen. “Die G20-Erklärung erkennt das Recht der Mitglieder an, legitime handelspolitische Instrumente anzuwenden, um unfaire Handelspraktiken anzugehen”, betont Eurometal.
Im Globalen Forum Stahl sollen die Mitglieder bis November konkrete politische Lösungsvorschläge erarbeiten, um die weltweiten Überkapazitäten im Stahlbereich in den Griff zu bekommen.
Quelle: Alexander Kirschbaum, marketSTEEL
YISAD has elected a new board
The Turkish “Flat Steel Import, Export and Industry Association” YISAD has elected a new board.
YISAD, based in Istanbul, was established in 2003 and represents the complete scope of the flat steel sector: hot rolled, cold rolled & galvanized flat steel producers, steel service centers, distributors, traders and tube mills operating in the Turkish steel market.
A main focus of YISAD activities are all aspects regarding the flat steel supply chains.
BOARD OF DIRECTORS
President GOKMETAL Gökhan DEMİRUZ
Vice President TATMETAL Akın TATOĞLU
Vice President COLAKOGLU M. Tayfun İŞERİ
General Secretary SAMI SOYBAS DEMIR Ahmet SOYBAŞ
Accountant member DEMPAS Ahmet ÖZKAN
Board member AGIR HADDECILIK Mustafa AÇIKALIN
Board member SERGEN METAL H. Tuncay SERGEN
Board member GUNER METAL Abdullah AKGÜN
Board member YAMETAS Mehmet Ali FİNCAN
Board member TUFAN DEMIR İhsan DANACIOĞLU
Board member COSKUN METAL Adil COŞKUN
Supervisory Board
Member AKMETAL Mustafa Kemal AKMERMER
Member TRN METAL Mustafa TORUN
Member NAZAL METAL Halit ÖZARSLAN
YISAD – Yassı Çelik İthalat, İhracat ve Sanayicileri Derneği
Küçükbakkalköy Mahallesi, Kayışdağı Cd. No:37 D:16
34750 Ataşehir/İstanbul
Turkey
yisad@yisad.org.tr
Tata Steel and thyssenkrupp agree to European merger
One of the longest-running acquisition sagas in the European steel arena has been settled. Tata Steel and thyssenkrupp AG signed definitive agreements on 30 June to combine their European steel businesses in a 50/50 joint venture in a new company, Tata Steel confirms to Kallanish. This follows the signing of a Memorandum of Understanding in September 2017. The transaction is subject to merger control clearance in several jurisdictions, including the European Union.
The speculation surrounding the conditions of this deal has been rife for several months as the two companies hammered out the details of the merger. There have been many red herrings thrown out by the popular media in recent months regarding disagreements on respective company performances, ownership ratio and trade union discord. The companies and the unions meanwhile have come to a consensus as initially proposed and within the agreed timeframe.
“The proposed new company, to be named thyssenkrupp Tata Steel B.V., will be positioned as a leading pan-European high-quality flat steel producer with a strong focus on performance, quality and technology leadership. The joint venture is built on the strong foundations of common value systems and a long heritage in the industry,” Tata Steel says.
Natarajan Chandrasekaran, chairman of Tata Steel, says that “… This is a significant milestone for Tata Steel and we remain fully committed to the long-term interest of the joint venture company. We are confident that this company will create value for all stakeholders.”
“We will create a highly competitive European steel player – based on a strong industrial logic and strategic rationale. We will secure jobs and contribute to maintaining value chains in European core industries,” comments thyssenkrupp AG ceo Heinrich Hiesinger.
Until closing, thyssenkrupp Steel Europe and Tata Steel in Europe still operate as separate companies and as competitors. Only after closing, thyssenkrupp Steel Europe and Tata Steel in Europe will be integrated as one company.
There was some especially good news for the UK operations of Tata Steel in Port Talbot which had reportedly been under threat from the merger, once again according to now-incorrect general media speculation. Tata has committed to the future of the plant until at least 2026 (see related article).
Fusion perfekt: Neuer Stahlriese in Europa
Nach rund zweijährigen Verhandlungen herrscht nun Klarheit: Tata Steel und thyssenkrupp haben heute (30. Juni) einen bindenden Vertrag zur Schaffung eines neuen Unternehmens unterzeichnet. Das gaben beide Unternehmen am Samstag bekannt. Laut den offiziellen Mitteilungen sollen die europäischen Stahlgeschäfte beider Unternehmen in einem 50/50-Joint Venture zusammengeschlossen werden. Auf diesen Schritt hatten sich die Partner im September 2017 mit einer Grundsatzvereinbarung verständigt. Wie marketSTEEL bereits berichtet hatte, waren die zuständigen Unternehmensgremien in dieser Woche zu abschließenden Gesprächen zusammengekommen.
„Das Joint Venture adressiert nicht nur die Herausforderungen der europäischen Stahlindustrie. Es ist die einzige Lösung, die für thyssenkrupp und Tata Steel erheblichen zusätzlichen Wert von rund 5 Milliarden Euro schafft”, sagt Dr. Heinrich Hiesinger, Vorstandsvorsitzender der thyssenkrupp.
thyssenkrupp entscheidet über Börsengang
Die unterschiedliche wirtschaftliche Entwicklung von thyssenkrupp Steel Europe und Tata Steel Europe hatte seit Unterzeichnung der Grundsatzvereinbarung zu einer Bewertungsdifferenz zwischen den beiden Einheiten geführt. Dafür haben die beiden Konzerne nun eine Lösunge gefunden: Im Falle eines Börsengangs des Joint Ventures erhält thyssenkrupp einen höheren Anteil der Erlöse, der dann einem wirtschaftlichen Verhältnis von 55/45 zugunsten von thyssenkrupp entspricht, heißt es in einer Mitteilung. Zudem entscheide die Führung in Essen allein über den Zeitpunkt eines potenziellen Börsengangs.
“Das Joint Venture wird ein starkes pan-europäisches Stahlunternehmen schaffen, das strukturell robust und wettbewerbsfähig ist. Dies ist ein wichtiger Meilenstein für Tata Steel und wir bleiben den langfristigen Zielen des Joint-Venture-Unternehmens voll und ganz verpflichtet”, so Natarajan Chandrasekaran, Vorsitzender von Tata Steel.
Unternehmenssitz in Amsterdam
Das Gemeinschaftsunternehmen thyssenkrupp Tata Steel B.V. soll als ein integriertes Unternehmen geführt werden. Die Holding wird ihren Sitz in der Region Amsterdam in den Niederlanden haben und über eine zweistufige Managementstruktur aus Vorstand und Aufsichtsrat verfügen. Es werde ein Europäischer Betriebsrat im neuen Unternehmen gebildet.
Nach Angaben von thyssenkrupp bescheinigen wirtschaftliche Prüfungen dem neuen Unternehmen Synergieeffekte in Höhe von 400 bis 500 Millionen Euro, unter anderem im Einkauf, durch eine Senkung der indirekten Kosten und durch eine verbesserte Anlagenauslastung. Darüber erwarten die Partner weitere Kosteneinsparungen bei Investitionen und einer Optimierung des Working Capital.
Im Zuge der Fusion sollen bei thyssenkrupp und Tata Steel jeweils rund 2.000 Arbeitsplätze in den Verwaltungsbereichen und in der Produktion gestrichen werden. thyssenkrupp Steel Europe und Tata Steel in Europa werden bis zum Closing weiterhin als getrennte Unternehmen und Wettbewerber agieren.
Source: marketsteel.de
EUROMETAL Steel Net Forum & International Steel Trade Day in Hamburg
EUROMETAL is organizing it’s Yearly Event in Hamburg, Germany, on 08th – 09th of October 2018.
The Steel Net Forum, will address key topics like Industry 4.0 strategies, Internet of Things, digitalisation, steel logistics, the role of independent steel distribution.
This session will close with a panel discussion on how steel distribution is enhancing the value chain of Steel.
In the afternoon the International Steel Trade Session will debate latest developments in the field of steel trade policy, anti-dumping, steel trade cases, safeguard measures, the rising protectionism and their impacts on the the steel supply of the European market.
You’re kindly invited to this important conference which will gather an high level panel of experts, professionals and key steel players.
Please confirm your participation by returning the registration form in the invitation below.
EUROMETAL Steel Net Forum & International Steel Trade Day – AGENDA & INVITATION
Empire Riverside Hotel – BOOKING
With best regards,
Georges Kirps
Silver Sponsor
Event Partners
ArcelorMittal Europe invests in tailored blanks production
ArcelorMittal continues to invest strongly in both its European operations and also in its product development for the automotive sector.
The steelmaker is installing a new high-technology welding line at its ArcelorMittal Tailored Blanks Lorraine facility in Uckange in France, it tells Kallanish. The new line follows a €7 million ($8.2m) investment the company says.
It will be the world’s first installation and application of a technology which enables two key processes in the production of laser welded blanks (LWB) – welding and partial ablation – to occur simultaneously. This will result in a 50% capacity increase when production begins – expected in September 2019.
The decision to locate the new welding line in Uckange is based on the proximity to the supply of press hardenable steel. This is required in the production of tailored blanks and will be supplied from ArcelorMittal’s plants in Florange and Mouzon. Uckange is also well-located for supply and distribution to ArcelorMittal Tailored Blanks’ key automotive customers, the steelmaker says.
The investment in the new welding line was made with the support of Tailored Blanks Lorraine’s local community and government stakeholders. The Grand Est region will provide 10% of the investment and 25% of the related R&D expenses, and the Val de Fensch community will also provide co-investment in the new installation. ArcelorMittal will also employ local companies for specific parts aspects of the project, it confirms.
Steel SolutSteel Solutions expands in Maastricht and Milanions expands in Maastricht and Milan
Steel Solutions, a steel logistics company based in Maastricht, is in the process of expanding its storage facilities in Holland and plans to open a site in Italy either later this year or next.
The company has been operating three warehouses up to now with two in Maastricht and one in nearby Born, the biggest inland container terminal in Benelux. In addition, it has just acquired another warehouse in Maastricht, says managing director Wibo Feijen, who will also speak this week at the Kallanish European Steel Markets conference in Antwerp.
The new Maastricht warehouse has 25,000 tonnes of extra capacity for stocking coil and sheet. It is already partially operational and is being prepared to be enabled to handle up to 60,000t by the end of the year.
According to Feijen, business for independent logistics suppliers has been increasing since 2008. “Before that, the mills’ own distribution networks were much bigger than they are now,” he explains. Steel Solutions has rail connections at its main sites with five trains operating each week, “… but we could need eight,” Feijen says.
Due to increasing inquiries from customers in southern Europe the company plans to expand into Italy, where it has secured a space in Milan. It has postponed its plans for establishing a logistics hub however due to the insecurity caused by the US trade measures and their possible repercussions on Europe.
“In the light of the Trump regulations we will monitor business impact for the coming three months. If perspectives do not change intangibly we are planning to be up and running in Italy by the beginning of 2019. It is our plan to service Southern Europe from Italy as we do Western Europe from Maastricht,” Feijen says.
Spanish distributors’ association names new president
The Spanish distributors’ association Unión de Almacenistas de hierros de España (UAHE) has named Roberto González from Tirso CSA as its new president during its annual general meeting this week, Kallanish learns.
González has been vice-president of the association during the last year and takes over the presidency from Juan Carlos Núñez. Together with the installation of González, UAHE members named Fernando Moraga from Grupo Hierros Alfonso as vice-president.
During the next four years the new president intends to continue working towards increasing the use of steel as well as pushing digitalisation further amongst the association’s membership, UAHE says.
German beam market business bypasses stockholders
The market for beams in Germany and is busy and healthy, but the amount of cross-border activity continues to grow, according to Andreas Schneider of Stahlmarkt Consult.
At the recent beams and sections conference organised by German steel distributors’ federation BDS, Schneider revealed that the stockholders’ share in the business is continuing to fall. In 2017, sales from stockholders were at around 1.1 million tonnes, which is -8% below the level of 2014, and a considerable -27% less than in 2007. This trend is in clear contrast with the rising production index of Germany’s industries, the analyst said at the conference attended by Kallanish.
It is also in marked contrast with the main domestic section producers Salzgitter, ArcelorMittal and Stahlwerk Thüringen, where production levels have remained stable and strong over the last four years. Overall market supply has continued to grow since 2013, following the year-long decline after the financial crisis.
One cause of this imbalance is an increase in export from and imports into Germany, both of which rose simultaneously by around 7% from 2015 to 2017. Exports continue to exceed imports, to the tune of 1.5 million tonnes of the former versus 1.05mt of the latter. Imports come mainly from EU neighbours, with Luxembourg supplying the lion’s share.
Another explanation for the fall in business at stockists is that more mills are supplying end-users directly. Many sections are also actually processed and sold by stockholders as structural components, and as such disappear from the statistics. That would mean higher added value for the stockholder, despite a decline in the tonnage of unfabricated sections sold.