Category: Latest Updates

European domestic hot-rolled coil prices remained largely steady July 24 amid limited re-stocking activity and a pessimistic market sentiment.

“Market has been slow,” one service center source said. “There has been no serious restocking.”

“Europeans will have a tough time,” another service center source said. “No increase in demand is expected in the next six to eight weeks.”

Market sources also said that import interest remains weak due to large quantities of material already waiting at ports, as well as higher prices caused by rising freight rates and the impact of the new EU safeguard measures.

“Increase in freight [prices] is eating margins,” a service center source said.

As a result, market participants are currently prioritizing domestic material over imports, sources said.

Platts assessed Northwest European HRC at Eur630/mt ex-works Ruhr July 24, up Eur5 on the day.

Tradable values were reported at Eur620-630/mt EXW Ruhr, and offers were heard at Eur650-660/mt delivered Germany July 24.

Meanwhile, Platts assessed domestic HRC prices in Southern Europe stable on the day at Eur625/mt EXW Italy July 24.

Tradable values were reported at Eur620-640/mt.

Geraint Moody | Devbrat Saha

Following approval from the German cartel office, the logistics joint venture between thyssenkrupp Steel Logistics GmbH and Duisburg port operator Duisburg Hafen AG (Duisport) is close to being finalised.

The steelmaker will hold 51% of the joint venture, with Duisport holding 49%. The JV’s goal is to pool expertise, making optimum use of existing capacities and, as partners, further developing Europe’s largest steel and logistics location.

According to Markus Micken, responsible for logistics at tk Steel, Duisburg has the world’s largest inland port, together handling over 60 million tonnes/year of raw materials and bulk goods. The two companies, therefore, “are natural partners for the ongoing development of logistics and the transformation in Duisburg and the Rhine-Ruhr region,” Kallanish hears him say.

Thyssenkrupp Steel Logistics GmbH was established in 2022, and has a workforce of around 300 employees. Duisport contributes extensive logistics expertise, for example with crane control software in its portfolio, that thyssenkrupp Steel has been buying in to date. Conversely, tk Steel Logistics contributes its expertise in bulk goods handling, and the use of push boats and lighters. Its own landing port in the Schwelgern district currently handles around 20m t/y of raw materials such as ores, sintered fuels and coking coal.

Christian Koehl Germany

Spanish coil processing company Network Steel (NS) says Japan-based Marubeni-Itochu Steel Inc. (MISI) has become a shareholder. The deal was sealed on 22 June.

The size of the shareholding acquired by MISI has not been revealed, although NSR confirms it is a minority stake, Kallanish notes. The company’s share capital has hitherto been divided into three packages. The most significant is owned by the president of the company, Oscar Heckh, with a 63.8% stake. The remaining participation is distributed between the company Equipos de Oficina Norte de España (8.18%) and treasury stock (28%).

“The transaction consolidates the commercial partnership between NSR and MISI,” NSR says. “This strategic agreement is motivated by a joint project to achieve a new stage of growth, driven by a diversification of products, markets, creation of synergies and know-how shared by both groups.”

MISI confirms it has agreed to acquire shares in Network Steel and make it an equity-method affiliate. “Through this investment, our company aims to expand its business presence in Europe, where stable economic growth is expected, and contribute to the enhancement of NSR’s corporate value by leveraging our stakeholders and business infrastructure,” MISI explains.

NSR is an independent manufacturer and distributor of steel in the Iberian Peninsula. The company has seven production plants and processing facilities with annual sales volume exceeding 1 million tonnes.

NSR is the parent company of a group of enterprises operating the production, processing and trading of flat steel products. It began operations in 2002 and is currently structured into two business segments. The commercial unit covers the company’s import activities, mainly from non-EU countries, with offices in Spain, Switzerland, China and Morocco. The industrial unit, meanwhile, includes seven flat steel production and processing centres in Spain and Portugal.

Todor Kirkov Bulgaria

Long steel prices in France have remained stable over the past week. At the start of July, there was a modest, €10/tonne ($10.8) uptick in values due to a rebound in apparent demand and a technical restocking ahead of the August holiday break, Kallanish notes.

The average transaction value for domestic rebar remains unchanged at €625-630/t delivered. Merchant bar prices have also remained stable this week, following a slight increase in deal prices compared to last month. Currently, prices are averaging at around €670/t delivered.

Sections are experiencing a resurgence in apparent demand, leading to a boost in prices. Values have been successfully increased by approximately €20/t since the start of June. The estimated range for the first category of sections is at approximately €760-770/t delivered.

According to national construction federation Fédération Française du Bâtiment (FFB), construction volumes remain low and there is no indication of any improvement. During the first quarter, there was a 4.6% year-on-year decline in production within the construction sector. There was a 7% y-o-y decline in new housing starts over the three-month period ending in May, while new building permits experienced a 11.4% decrease.

Natalia Capra France

Italian wire rod producers are increasing prices by €20/tonne ($21) from June, Kallanish notes. As summer approaches, mills and their customers are preparing for August shutdowns, which are expected to be longer this year.

The increases could become more apparent in September contracts as buying activity has significantly decreased. Despite the continued low consumption, July sales have improved compared to the slow activity seen in June. This is attributed to a technical restocking before the August shutdown of the entire value chain. According to sources, the latest contracts did not include the €20 hike.

Imported material has no substantial cost advantage compared to domestic product. Domestic drawing-quality rod is currently at €620-630/t delivered. However, there is also material available from stock that can be delivered quickly, which is being marketed at €640/t delivered. Based on sources, the new prices for drawing-quality material are expected to be at around €650/t delivered.

Buyers are sceptical price hikes can succeed while consumption remains subdued. According to one source, there is no recovery expected in September due to reduced activity at drawing mills and worker layoffs at several customers. The latter have resulted in production being limited to five days a week.

Another source expresses concern about the declining competitiveness of the entire industry. Italy’s stagnating birth rate and reliance on low-skilled immigrants to work in factories mean mills and drawing mills are having difficulty filling positions.

“This is not a temporary crisis; we have entered a new phase of decreased consumption. Our competitiveness in Europe is declining. Wire rod derivatives from Asia, especially China, are available at highly competitive prices. The EU process of applying dumping regulations can be quite lengthy and bureaucratic. Brussels appears to be primarily focused on the industry’s shift towards sustainability, while European steel production has experienced a significant decline over the past 15 years,” the source asserts.

The construction sector is experiencing a crisis in a number of European countries. Buyers are purchasing around three cargoes per month to meet their immediate needs. Price increases will not be well received downstream, the source points out, adding that consumption downstream remains stable at lower levels. European mechanical engineering sector activity is currently stable, while the automotive and white goods sectors are in a slowdown.

A service centre that relies heavily on exports is reporting positive results and consistent demand from its export sales channels. However, local service centres, smaller drawing mills and metalworking companies in Italy are facing significant challenges.

Natalia Capra France

European hot-rolled coil prices were stable to slightly weaker on Wednesday July 24 amid low demand, but mills are looking to increase prices for fourth-quarter deliveries, sources told Fastmarkets.
Fastmarkets calculated its daily steel HRC index domestic, exw Northern Europe at €626.25 ($680.53) per tonne on Wednesday, down by €2.00 per tonne from €628.25 per tonne on Tuesday July 23.

The index was down by €1.50 per tonne week on week and by €5.75 per tonne month on month.

Buying in the region was seasonally slow. Sources said that most buyers have already secured the necessary volumes for September-delivery coil so were not active in the market.

“Trading is very dull. Buyers are not looking for volumes, but mills still have a lot [of HRC] to sell for September delivery,” one buyer in the Benelux area told Fastmarkets.

Most sources confirmed that European producers still have September-delivery HRC available.

Offers from integrated mills in the region for HRC with lead times of four to five weeks were still heard at €625-650 per tonne ex-works. But deals were mainly done at the lower end of the range, or even below that.

In Germany, transactions for September-delivery HRC were heard done at €620-625 per tonne ex-works from local suppliers, according to sources. One mill was said to be accepting €610 per tonne ex-works for bigger tonnages.

In the Benelux area, one supplier was heard to be selling September-delivery HRC at €600-620 per tonne ex-works.

Another mill in the Benelux area was selling September-delivery HRC at €630-640 per tonne ex-works. For October delivery, the supplier’s offer was heard at €660 per tonne ex-works. But buyers have so far deemed this offer unworkable.

In general, most suppliers in the region were looking to achieve some €20-30 per tonne ex-works for HRC with lead times in the fourth quarter, expecting apparent demand to pick up in September and support the increase.

Buyer sources were skeptical about the possibility of a price rebound, considering the lack of demand and oversupply in the market

“September-delivery [HRC] purchases have already been finalized by most buyers. There is very little activity in the market. Even if demand picks up in September, there will be plenty of [HRC] volumes to accommodate it,” a buyer in Germany told Fastmarkets.

Meanwhile, in Southern Europe, Fastmarkets calculated its daily steel HRC index domestic, exw Italy at €621.25 per tonne on Wednesday, stable day on day.

The index was up by €0.62 per tonne week on week, but down by €6.25 per tonne month on month.

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 €610-620 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.

Import offers from Asia were limited, source said.

Vietnam-origin coil was heard offered at €620 per tonne FCA Antwerp, but lead times were reported to be in January 2025.

To Italy, HRC from Vietnam and Taiwan was offered at €570 per tonne CFR.

But sources said that interest in Asia-origin coil was quite low due to quota-related risks.

Offers of HRC from Turkey were available at €590-610 per tonne CFR, including the anti-dumping duty.

Overseas suppliers were offering September- or early-October-shipment HRC to Europe.

Published by: Julia Bolotova

Global crude steel production in the first half of 2024 totaled 954.6 million mt, steady year on year, according to World Steel Association data July 23.

The June total was 161.4 million mt, up 0.5% year on year, but down 2.1% on the month, the data showed.

The largest producer China had an output of 91.6 million mt in June, up 0.2% year on year but down 1.35% from May and making up 56.8% of the total volume. That took H1 volume to 530.6 million mt, down 1.1% year on year.

The second-largest producer India produced 12.3 million mt in June, up 6% year on year and up 0.3% on the month, with the H1 volume up 7.4% on the year to 74.2 million mt.

In June, Japan produced 7 million mt, down 4.2% year on year and 2% lower than May, with the H1 total at 42.7 million mt, falling 2.6% year on year.

The US produced 6.7 million mt of crude steel in June, down 1.5% on the year and 3% lower on the month, while Russia was estimated to have produced 6 million mt in June, down 4.1% on the year and falling 3.2% from May.

In H1, the US produced 40 million mt and Russia 36.8 million mt, down 2.4% and 3%, respectively, year on year.

South Korea produced 5.1 million mt in June, down 7.2% on the year and 0.85% lower on the month, taking the H1 total to 31.5 million mt, down 6.4% from H1 2023.

Turkey produced 3.1 million mt, up 4.3% from June 2023, but down 4.4% from May, with the H1 volume up 16.9% to 18.6 million mt.

In June, Iran produced 2.6 million mt, down 8.5% year on year and 19.7% lower than May, while Brazil produced 2.9 million mt, up 11.8% on the year and 11.2% higher from May.

 

EU June volume rises 5.1% on year
The EU produced 11.1 million mt in June, up 5.1% on the year, but down 5.7% from May. In H1, the EU produced 67.2 million mt of crude steel, up 0.9% on the year.

Germany, the region’s largest steelmaker, saw June production rise 8.9% year on year and remain steady on the month to 3.2 million mt, bringing the H1 volume to 19.4 million mt, up 4.5% on the year.

According to data from German Steel Federation (WV Stahl), Germany’s H1 electric steel production increased 8.7% on the year to 5.89 million mt, while its production via blast furnace rose 2.7% to 13.48 million mt.

Germany’s production of hot rolled coils in H1 rose 3% on the year to 16.72 million mt, VW Stahl said.

“Crude steel production seems to have passed the deepest valley. However, it is questionable how sustainable this development is,” VW Stahl Managing Director Kerstin Maria Rippel said in a statement

“Even after 2023, the weakest year in demand since the financial crisis, the steel industry is still lacking urgently needed demand impulses from the important steel-processing sectors,” Rippel said.

Mechanical engineering, the automotive industry and the main construction industry continued to struggle with weak international demand, the crisis in housing construction and a lack of investment at home and in the EU, Rippel said.

In June, Platts, part of S&P Global Commodity Insights, assessed HRC prices in a range of Eur625-635/mt ($678-$689/mt) base ex-works Ruhr. The price was assessed at Eur625/mt ex-works Ruhr July 22, down 9.4% since the start of 2024.

Meanwhile, global production of pig iron from 37 countries was 642.4 million mt in H1, down 2.55% year on year, the data showed.

Direct reduced iron produced in 13 countries in H1 amounted to 61.6 million mt, rising 6.9% year on year, according to worldsteel.

The crude steel data covers 71 countries that report to worldsteel, accounting for about 98% of the world’s crude steel production in 2023.

Annalisa Villa | Jacqueline Holman

European domestic hot-rolled coil prices remained unchanged July 23, with sources expecting the market to significantly weaken in the month of August, particularly in Southern Europe, before any signs of strengthening are seen.

“Quiet market,” a service center source said. “Nobody is trying to buy or restock,”

Sources noted that, although market fundamentals remain sluggish, demand may pick up after the summer season as stocks begin depleting and demand improves.

“We have seen a similar month,” the source said. “There is low demand but there have been some signal of things picking up.”

“From September to October, [prices may] bounce back,” another service center said. “At the moment, there is no demand at all.”

However, the recovery in demand is likely to remain sluggish on a lack of overall end-user demand, sources said.

Platts assessed Northwest Europe HRC at Eur625/mt ex-works Ruhr July 23, stable on the day. Tradable values were reported at Eur620-630/mt EXW Ruhr.

Meanwhile, Platts assessed domestic HRC prices in Southern Europe stable on the day at Eur625/mt EXW Italy July 23. Tradable values were reported at Eur610-630/mt, with the majority of the data heard at Eur620-630/mt EXW Italy.

Devbrat Saha | Geraint Moody

The permanent closure of ArcelorMittal Poland’s coke oven battery in Krakow will not affect the output of semi-finished and flat steel products from either of the company’s plants in Krakow and Dabrowa Gornicza, a spokesperson told Fastmarkets on Tuesday July 23.
On July 19, ArcelorMittal Poland announced that it had decided to close the Krakow coke plant permanently. It had until then been hot-idled for eight months.

“At the end of last year, the only coke oven battery in Krakow was hot-idled,” Wojciech Koszuta, the chief executive officer of ArcelorMittal Poland, said. “Hot-idling of this plant allowed for the possible resumption of coke production if market conditions improved. Unfortunately, this has not happened.”

He added that a standstill process such as hot-idling was very costly due to the high price of the natural gas used to fuel the installation. Consequently, keeping the plant on that status was not economically justified.

“In addition, the decarbonization plans of many industries in the coming years will gradually reduce the demand for coke,” a company press release said.

In October 2020, the company permanently closed the hot zone at the Krakow steel mill due to the dramatic effects of the Covid-19 pandemic on the European steel market. The coke plant and rolling mills had remained operational.

“The coke oven battery in Krakow has capacity for 650,000 tonnes per year,” the company spokesperson told Fastmarkets, and this was used to feed the blast furnaces at Dabrowa Gornicza, which in turn produces slab for the hot-rolling and cold-rolling mills in Krakow.

As a result, after the closure of the coke oven battery, the rolling mills will be the only facilities operating at ArcelorMittal Poland’s site in Krakow. It produces hot-rolled coil, cold-rolled coil, hot-dipped galvanized coil and organic-coated coil.

“The permanent closure of the coke plant in Krakow will not affect the production at our other plants,” the spokesperson told Fastmarkets, adding that the company produces coke at its coke plant in Zdzieszowice, which is around 160km from Krakow and has capacity for around 4 million tpy of coke.

“[This unit] ensured continuity of production during the hot-idling of the Kraków coke plant, and we will have no problems now about the availability of coke,” the spokesperson added.

According to Fastmarkets’ sources, the closure of the coke oven battery in Krakow will not have a significant effect on the local market for flat steel products.

“The situation with HRC [in Poland] is dire, and I do not think it will change much,” a distributor source told Fastmarkets.

Prices of HRC in Central Europe have been largely stable in recent weeks. Local mills were hoping to increase prices for October-delivery coil, but slow demand was seen as a major obstacle for a price rise.

As a result, Fastmarkets’ most recent weekly price assessment for steel hot-rolled coil, domestic, exw Central Europe, narrowed downward to €620-630 ($675-686) per tonne on July 17 from €620-635 per tonne the previous week.

Published by: Julia Bolotova, Darina Kahramanova

Hot-rolled coil prices across Europe remained broadly flat on Tuesday July 23, with thin trading in the spot market due to a seasonal slowdown and weak consumption, sources told Fastmarkets.
In Northern Europe, integrated mills were heard offering September-delivery HRC in the range of €625-650 ($680-708) per tonne ex-works. Some suppliers still had late-August delivery coil available, sources said.

Buyers remained at the sidelines, only booking what was strictly necessary, Fastmarkets heard.

Transactions for small tonnages of HRC were reported at €625 per tonne ex-works in Germany, in line with buyers’ estimations of tradeable prices at €620-630 per tonne ex-works.

“Stocks are sufficient at most buyers, and demand [from end users] remains on the low side,” a buyer in Germany said.

Fastmarkets calculated its daily steel hot-rolled coil index domestic, exw Northern Europe at €628.25 per tonne on Tuesday, down by just €0.75 per tonne from €629.00 per tonne on Monday July 22.

The index was down by €3.00 per tonne week on week and by €1.75 per tonne month on month.

Sources said that, for October-delivery HRC, European mills were targeting higher offers at €660-670 per tonne ex-works.

But most industry sources told Fastmarkets they questioned the possibility of a price rebound, considering a lack of demand and oversupply in the market.

“The capacity utilization rate at most EU mills is no higher than 70%, even lower than that at some producers — and nobody misses the volumes [of HRC],” a mill source in Europe said. “And ports are full of imported HRC.”

Sources agreed that domestic prices were unlikely to decrease further.

“Mills have to be cautious of costs. And import pressure has alleviated with new safeguards in place — yes, there is still plenty of import [HRC] at the ports, but prices are mostly in line or only slightly below European [prices]. That supports the [low end of domestic HRC prices],” a second producer source said.

Meanwhile, in Southern Europe, Fastmarkets calculated its daily steel hot-rolled coil index domestic, exw Italy at €621.25 per tonne on Tuesday, down by €0.42 per tonne from €621.67 on Monday.

The index was up by €1.25 per tonne week on week but down by €7.50 per tonne month on month.

September-delivery coil was still widely available from Italian and other European suppliers, with offers reported at €640-650 per tonne delivered (€630-640 per tonne ex-works).

Buyers in Italy reported bids at €610-620 per tonne ex-works.

Buyers and sellers reported estimations of tradeable prices at €620-640 per tonne ex-works, depending on the volume.

Trading in the country remained thin, and a post-summer rebound was put into question.

“There was talk of €20-30 [per tonne] price rises for October-delivery coil, but demand is not strong enough to support it,” a buyer in Italy said.

Meanwhile, several sources reported HRC offers from Vietnam at €570 per tonne CFR to Southern Europe.

One source reported an offer from a Vietnamese mill to the Iberian market at €540 per tonne CFR, but sources suggested it was for a large tonnage.

From Saudi Arabia, offers to Italy were heard at €610 per tonne CFR.

From Japan, offers were heard in the range of €580-600 per tonne CFR, depending on the supplier.

Turkish mills were reportedly offering HRC to Southern Europe at €600 per tonne CFR, including the anti-dumping duty, and a deal was heard done at €590 per tonne CFR to the Iberian market at the end of the previous week.

Most overseas suppliers were offering September- or early-October-shipment HRC to Europe.

Published by: Julia Bolotova