Steel hollow sections prices in Europe climb on higher HRC feedstock costs
Fastmarkets’ weekly price assessment for steel sections (medium) domestic, delivered Northern Europe was €820-890 ($892-969) per tonne on Wednesday, up by €20-30 per tonne from €800-860 per tonne one week prior.
Fastmarkets’ weekly price assessment for steel sections (medium) domestic, delivered Southern Europe was €820-890 per tonne on Wednesday, up by €20-30 per tonne week on week from €800-860 per tonne.
“Demand is slightly higher, but the cost of production is also increasing, therefore all mills are offering at a higher price,” one trader in northern Europe told Fastmarkets.
Trading in southern Europe is “good for the moment,” a producer said, adding that “some countries are a little bit better off and some a little worse off [in terms of demand].”
One of the main drivers pushing up production costs has been rising hot-rolled coil feedstock prices, Fastmarkets heard.
Fastmarkets’ daily calculation of its steel HRC index domestic, exw Northern Europe was €746.67 per tonne on Wednesday, up by €11.04 per tonne from €735.63 per tonne week on week, and up by €51.17 per tonne month on month.
European mills managed to push up prices for HRC in January amid good order books and tight supply.
Published by: Holly Chant
European steel HRC prices increase despite subdued trading
The limited availability of the material was seen to be the main reason for continuing price rises.
In Northern Europe, offers were heard at €800-820 ($868-890) per tonne ex-works. But these prices were not accepted by the market.
Deals for small volumes were reported in the range of €750-760 per tonne ex-works. “Orders at these prices [would be delivered in] the second quarter of 2024, but March deliveries were still possible,” a buyer source told Fastmarkets.
Market participants estimated the tradable market level in the same range of €750-760 per tonne ex-works.
Consequently, Fastmarkets calculated its daily steel hot-rolled coil index, domestic, exw Northern Europe at €754.17 per tonne on January 29, up by €2.92 per tonne from €751.25 per tonne on January 26.
The index was also up by €7.92 per tonne week on week and by €58.67 per tonne month on month.
According to Fastmarkets’ sources, the continuing price rises were not so much demand-driven but a result of the limited availability.
“Buyers are booking only the volumes they absolutely need, and avoiding a build-up of stocks,” a second buyer source told Fastmarkets.
Meanwhile, quite a few blast furnaces were still idle in Europe, and import offers for material were not particularly attractive.
Fastmarkets calculated its daily steel hot-rolled coil index, domestic, exw Italy at €753.33 per tonne on Monday, up by €8.33 per tonne from €745.00 per tonne on Friday.
The index was also up by €17.78 per tonne week on week and by €65.00 per tonne month on month.
In Italy, offers were heard in the range of €750-770 per tonne ex-works.
Market participants estimated the tradable market level to be in the range of €745-755 per tonne ex-works.
Offers of imported material from Japan, South Korea and India to Italy were heard between €670 per tonne and €700 per tonne CFR.
“These offers are not interesting [for importers] because they are too close to the local [price] and have delivery times that are too long at 3-4 months. Furthermore, there are still sizable HRC tonnages stored in ports and waiting to be cleared in the second quarter,” the first buyer source told Fastmarkets.
A third buyer source reported import offers from Asia at €660-680 per tonne CFR.
Market participants estimated the tradable price for Indian HRC at $730-735 per tonne CFR in Southern Europe.
Offers from Turkey were heard at $690 per tonne FOB, which would net back to around $750 per tonne CFR to Italy.
Published by: Darina Kahramanova
Anti-dumping probe could hit Turkish white goods: association
Consequences arising from the ongoing anti-dumping investigation on imports of hot-rolled flat steel products from China, India, Japan, and Russia could have a substantial impact on Turkey’s white goods exports and employment, according to Turkish white goods manufacturers association Turkbesd.
The dependence of the white goods sector on cold rolled steel, derived from hot-rolled flat steel, emphasises the need for a thorough assessment of the potential consequences of the investigation, says Turkbesd board member Mehmet Yavuz.
The association also emphasises the crucial need for Turkey to establish an Emission Trading System (ETS) linked with the EU. Collected revenue should be allocated towards green transformation as well as for future exemptions from the Carbon Border Adjustment Mechanism (CBAM), Kallanish notes.
Meanwhile, export incentives must be continuously developed to support exporters in the EU and related markets, especially in competition with Far Eastern counterparts, according to Fatih Özkadı, deputy chairman of Turkbesd.
In 2023, the Turkish white goods industry was vital on account of the domestic market, offsetting export challenges. The continuity of domestic consumers’ purchasing power was therefore essential for stable growth, the association says.
Promoting the widespread use of energy-efficient products is envisioned to bring benefits to both the country and consumers, according to Turkbesd president Gökhan Sığin. “Reducing the number of credit card instalments and increasing loan interest and commission rates prevent energy efficient products from reaching more consumers. If energy efficient products dominate the market, a total of 6 TWh of energy can be saved, equivalent to the one-year production of the Keban Dam,” Sığin notes.
Turkey’s white goods domestic sales of six main products increased by 14% compared to the previous year, while exports from Turkbesd member companies declined by 10% in 2023.
The combined total sales, comprising exports and domestic sales for these six main products, reached approximately 33 million units in 2023, reflecting a 4% decrease compared to the previous year. Concurrently, the overall production volume also saw a marginal 1% decrease.
The decline in exports during the year was primarily due to the contraction in foreign markets, says Sığin. Despite this, domestic sales have played a significant role in balancing the export decline. With the crucial importance of domestic sales, amid global risks affecting exports, maintaining Turkey’s production and employment levels in the white goods sector in 2024 is achievable on account of the strong domestic market, Sığın adds.
Turkbesd comprises both local and international member companies, including importers and manufacturers such as Arçelik, BSH, Dyson, Electrolux, Haier Europe, LG, Miele, Samsung, SEB Groupe, Versuni (Philips), and Vestel.
Turkey is Europe’s largest and the world’s second-largest white goods production hub with an annual production capacity of 32.3 million units and an export capacity of 23 million units.
Turkey’s cold rolled flat steel imports increased 58.3% on-year in November 2023 to 67,805 tonnes, while Asian countries became major suppliers, achieving a cumulative share of 54%, compared to only 4% a year earlier (see Kallanish passim). Therefore, some Turkish cold rolled flat product end users have expressed concern over the impact of a potential CR flats antidumping investigation on their sourcing ability.
The significant increase in Turkey’s flat steel imports prompted domestic flat steel producers to call for an investigation into hot rolled coil imports from China, Russia, Japan, and India in October last year.
Elina Virchenko UAE
Antwerp port hurts from tensions, recession
The Port of Antwerp-Bruges has not been left unharmed by geopolitical tensions and the slowing economy, which notably reduced throughput of steel and other goods, Kallanish learns from the port operator.
Antwerp is Europe’s leading breakbulk port for steel, which figures as conventional break bulk at ports. Compared to 2022, total throughput of conventional break bulk last year was down 18.8%, totalling around 10 million tonnes. Due to a decline in European steel production and lower demand, handling of steel, which comprises the lion’s share of this category, fell by 16.9%. The port notes that exports held up slightly better than imports, with exports down 15.5% and imports down 17.9%.
The total throughput, including liquid bulk, dry bulk, containers, Ro/Ro goods and containers, was 271mt in 2023, down 5.5% from the previous year. Thanks to the added value of the merger, the market share of the container segment increased compared to the other ports in the Hamburg – Le Havre range, according to the operator.
It notes that sustainable growth remains a priority. Over the next ten years, the port envisages an investment programme worth €2.9 billion ($3.1 billion), including in new infrastructure such as a quay wall for the Europa Terminal, a new coordination centre and residual land on the Left Bank.
This year, the port will see the first bunkering of hydrogen and hydrogen carriers, such as methanol. As part of the greening of the Port of Antwerp-Bruges fleet, two pioneering vessels will be introduced: the Methatug, the world’s first methanol-powered tug, and an electric RSD, a first for Europe.
Christian Koehl Germany
Romania’s Intertranscom acquires Dan Steel, eyes production restart
Romanian manufacturer of welded mesh wire Intertranscom Impex SRL has acquired steel wire producer Dan Steel, based in Beclean, Intertransocm confirms to Kallanish.
The bankrupt plant was sold at a public auction for €7.5 million ($8.15m).
The new owner plans to restart production and to transform the plant into one of the main employers in Beclean, it tells Kallanish.
CITR Cluj Branch, together with Prime Insolv Practice, as judicial liquidators, organised the previous auction for Dan Steel last June with a starting price of €23m, down from €25m and €28m in the prior auctions respectively.
Dan Steel Group was active in the production of wire and wire products, with a production capacity exceeding 100,000 tonnes/year. The asset comprises over 40 hectares of land, buildings with a total usable area of 75,460 square meters and related equipment.
The mill produced a range of carbon and galvanized steel wire, as well as welded mesh, fencing and nails. The company imported feedstock from Ukraine, Italy, Poland, Belarus and Moldova, from suppliers such as ArcelorMittal, Metinvest, Belarussian Steel Works and Moldova Steel Works. Its main competitors were IS Campia Turzii, Ductil Steel Buzau, and Metalicplas. The main export markets in 2019 were Hungary and Slovakia.
In 2019, the firm suffered from weaker domestic demand compared to 2018 and had planned to increase exports to new markets after shipments abroad also declined on-year (see Kallanish passim). Production fell 26% on-year in 2022 to 31,994t.
In 2020, Dan Steel was directed into insolvency proceedings following a request from creditor Unicredit Leasing Corporation. Its bankruptcy procedure was initiated in March 2022.
The company has accumulated debt of over €35m, which has created additional pressure on its financial situation.
Svetoslav Abrossimov Bulgaria
Germany earmarks €1 billion for ArcelorMittal decarbonisation: reports
ArcelorMittal’s German mills might soon obtain more than €1 billion ($1.1 billion) in public subsidies for their transition towards low-emission steelmaking, Kallanish hears.
ArcelorMittal has been on standby for a positive decision on the subsidy, after Germany’s other oxygen-route mills had state aid approved one after the other last year. Subsidies have so far been granted to thyssenkrupp (€2 billion), Salzgitter AG (€1 billion) and Stahl-Holding Saar mills Dillinger and Saarstahl (€2.6 billion).
According to business daily Handelsblatt, an initial tranche of subsidies for ArcelorMittal’s two oxygen-route mills, Bremen and Eisenhüttenstadt, could be released in the first quarter of this year. Citing federal government insiders, it writes that the tranche will be between €1 and €1.2 billion. The exact amount is still under discussion between the company, the German government, and the European Commission, the paper writes.
It quotes the vice chairman of union IG Metall, Jürgen Kerner, as saying that an approval is expected “in the coming weeks”. The paper notes that funds for the technical conversion of the steel mills would only be the first part of a bundle of subsidies. It gives the figure of €7 billion that also covers the first years of operation, to cushion higher production costs.
Christian Koehl Germany
Europe HRC prices supported by limited supply
In Northern Europe, prices continued to climb slowly, but traded volumes were still limited in the spot market.
“Buyers are booking only the volumes they absolutely need, to avoid building stocks,” a buyer source said.
Deals for domestically produced HRC in the region were heard at €750-770 ($815-837) per tonne ex-works, with most trades heard at the lower end of that price range.
Higher offers of €800-820 per tonne ex-works were still not being achieved in sales, according to market sources.
Lead times were mostly in April, but some producers could still offer March delivery, Fastmarkets heard.
Both producers and buyers agreed that the sharp price uptrend was driven by tight supply, while demand from all end-user sectors, except the automotive industry, was weak. Demand for steel from the automotive sector was also not booming, but rather was “stable at lower levels — not rising, but not declining either,” market sources said.
“We see that quite a few blast furnaces are still idled in Europe, [and] importing HRC is getting increasingly tricky. So far, these factors have helped mills to get higher prices [for coil],” a second buyer source said.
As a result, Fastmarkets calculated its daily steel hot-rolled coil index, domestic, exw Northern Europe at €751.25 per tonne on January 26, up by just €1.67 per tonne from €749.58 per tonne on Thursday January 25.
The index was also up by €7.25 per tonne week on week and by €55.75 per tonne month on month.
Fastmarkets calculated its corresponding daily steel hot-rolled coil index, domestic, exw Italy at €745 per tonne on Friday, up by €4 per tonne from €741 on the previous day.
The index was also up by €9.58 per tonne week on week and by €56.67 per tonne month on month.
Trading in the Italian market was also limited, and supply was limited as well, market sources said. This allowed local suppliers to secure higher prices in deals.
Transactions were reported at €745-750 per tonne ex-works in Italy on January 26.
Official offers were slightly higher, around €770-780 per tonne delivered (€755-765 per tonne ex-works) for March-/April-delivery HRC.
HRC offers from Indian and South Korean mills for April shipment were reported at €670-690 per tonne cfr Italy.
One Turkish supplier was offering HRC to Italy at €700 per tonne cfr, including anti-dumping duties.
Published by: Julia Bolotova
Polish rebar, wire rod prices up with mills still bullish despite low demand
Rebar
Polish mills remained bullish this week and offered rebar at 2,900-2,920 Polish zloty ($720-725) per tonne CPT, which would net back to 2,880-2,890 zloty per tonne ex-works.
An even higher offer price of 2,950 zloty per tonne CPT was reported heard in the market, which would net back to about 2,920 zloty per tonne ex-works. But this price was not confirmed by market participants and it was excluded from Fastmarkets’ final assessment.
In comparison, last week, Polish mills mostly offered rebar at 2,900 zloty per tonne CPT, about 2,880 zloty per tonne ex-works.
Most market participants described trading as “quiet” this week, although some deals for large volumes were heard.
“Two significant deals for around 5,000-10,000 tonnes each took place this week,” a consumer source told Fastmarkets. These were traded around 2,880 zloty per tonne CPT, about 2,850 zloty per tonne ex-works. But these deals discarded from the assessment because the volumes did not comply with Fastmarkets’ methodology.
Last week, smaller quantities of about 300 tonnes were traded around 2,850 zloty per tonne CPT, 2,820 zloty per tonne ex-works. Fastmarkets excluded this level from its assessment as well, because the deals were concluded in the previous assessment period.
Deals for 12mm rebar this week were heard at 2,870 zloty per tonne ex-works.
As a result, Fastmarkets’ weekly price assessment for steel reinforcing bar (rebar), domestic, exw Poland, was 2,870-2,890 zloty per tonne on Friday, up by 10-20 zloty per tonne from 2,860-2,870 zloty per tonne on January 19.
According to Fastmarkets’ sources, prices for rebar in the secondary market varied in the range of 2,850-2,900 zloty per tonne CPT.
Offers of imported material from Italy were heard at €660 ($717) per tonne CPT, and from Moldova at €665 per tonne CPT.
Wire rod
Polish mills continued to offer wire rod in the range of 3,000-3,300 zloty per tonne CPT in the week to January 26, market sources said.
But the tradable price was estimated at 2,900-3,100 zloty per tonne CPT. Deals for small volumes were heard in that price range.
Consequently, Fastmarkets’ weekly price assessment for steel wire rod (drawing quality), domestic, delivered Poland, was 2,900-3,100 zloty per tonne on January 26, up by 100 zloty per tonne from 2,800-3,000 zloty per tonne on January 19.
“This week, Polish mills were sending material from their orders for [production in] January. New offers for February are expected soon,” a distributor source told Fastmarkets.
They added that demand from all industrial sectors remained weak, and that there was no restocking activity.
Offers of imported material from Italy were heard in the range of €670-699 per tonne CPT.
Import offers of mesh-grade wire rod from Ukraine were heard at €660-670 per tonne CPT, Fastmarkets heard, and some deals for such material were concluded at prices in that range.
Published by: Darina Kahramanova
Italian heavy plate prices rise despite trading slowdown
Domestic prices for heavy plate in Italy have increased slightly in the week ended Jan. 26 although trading activity has slowed down.
“In plate market, there is no big restocking, but prices hold largely stable,” a mill source said. “There is regular trading and big buyers would have to return to the market looking for volumes soon.”
“Demand for plate is normal, slab prices are high, re-rollers are looking for higher plate prices and generally the market seems healthy,” a Germany-based distributor said.
Platts assessed domestic prices for heavy plate in South Europe up Eur5/mt on the week to Eur770/mt ex-works Italy on Jan. 26.
Majority of deals have been heard at Eur760-780/mt ex-works Italy. Italian mills have been aiming for Eur800/mt ex-works for the material.
Platts assessed prices for imported slab in the region at $660/mt CIF Italy on Jan. 26, down $10/mt on the week.
Deals for slab from Asia have been heard at $650-$660/mt CIF Italy and tradable values — at $670-$680/mt CIF Italy.
Some market participants, however, had less optimistic view on the demand.
“We have very poor inquiries and orders, the market is still suffering from the lowest turnover from stock in history in December and therefore a stock level which is not as low as expected plus big purchases in last year at old prices,” another Germany-based distributor said.
Platts assessed domestic prices for heavy plate in Northwest Europe down Eur10/mt on the week to Eur830/mt ex-works Ruhr on Jan. 26.
Offers of heavy plates from German mills have been reported at Eur810-850/mt ex-works Ruhr, but lower prices were available only for limited volumes.
Northwest European re-rollers have been offering the material at Eur800-850/mt ex-works and a supplier from Central Europe — at Eur800/mt ex-works.
Author: Maria Tanatar, maria.tanatar@spglobal.com
Tata Steel to close coating line and service center in Turkey
TSIM’s color coating line and service center, which started operations in 2000, are located in Adapazari, near Istanbul.
Tata Steel said the specificity and limited scale of the production operations in Turkey have been negatively affected financially by rapidly changing market conditions, such as increased competition, price fluctuations, and evolving market demands.
“As these challenges are anticipated to persist in the medium and long term, it has therefore been decided to cease operations in Turkey,” it said.
“With TSIM’s high differentiation of its product and service portfolio in colors, and considering the extreme market developments, sustaining its business model is no longer feasible,” said Gunilla Saltin, member of the board of Tata Steel Nederland, adding that they emphasize the uninterrupted continuity of their sales and after-sales services in Turkey.
The closure of production and operations at Adapazari will take place over the coming weeks.
Slow demand in main export markets, lower imported coated coil offers to Turkey, particularly from Asian suppliers, as well as high input costs pressured Turkish mills’ flat steel pricing throughout 2023.
Platts, part of S&P Global Commodity Insights, last assessed the weekly Turkish domestic HDG price at $890/mt EXW Jan. 19, down $10/mt on week.
Author: Cenk Can