Category: Latest Updates

Rebar
Fastmarkets’ weekly price assessment for steel reinforcing bar (rebar), domestic, exw Poland, was 2,630-2,650 zloty ($637-642) per tonne on Friday, unchanged since August 18.

Sources reported an offer from one local producer at 2,650 zloty per tonne CPT, which would be equivalent to about 2,630 zloty per tonne ex-works.

Another mill in the country was hoping to achieve slightly higher prices of 2,680-2,700 zloty per tonne CPT, which would net back to about 2,650-2,680 zloty per tonne ex-works.

There was still limited trading in the Polish rebar market, and sources had low expectations of a price rebound in September.

“Demand [for rebar] is low and there will not be many chances for any pick-up this year. The construction sector is very weak – there are no new projects,” a trading source said.

Local producers were reported to be trimming output to balance supply and demand, but industry sources doubted that this would help to keep prices up.

“Mills can try to intimidate the market with output cuts, but I don’t think they will be successful in the end. There is no demand [from end-users],” a second trader said.

In the secondary market, rebar prices were reported at 2,700- 2,750 zloty per tonne CPT, largely flat week on week.

Wire rod
Fastmarkets’ weekly price assessment for steel wire rod (drawing quality), domestic, delivered Poland, was 2,750-2,800 zloty per tonne on Friday, stable week-on-week.

The assessment was based on a few deals reported at 2,750-2,760 zloty per tonne CPT and offers from local mills heard at 2,800 zloty per tonne CPT.

Sources said that producers in Poland were considering raising their offer prices for September, but nothing has been announced officially yet.

Market participants believed that there was no room for any price rise in the wire rod market, given persistently poor demand.

Import wire rod offers to Poland were limited by vacation absences. European suppliers were expected to come back to the market with new offers next week.

One Ukrainian supplier was offering mesh-quality wire rod at €570-585 ($618-634) per tonne from stock, depending on tonnage.

At the same time, one source said that another Ukrainian supplier was offering wire rod around €530 per tonne DAP, which would net back to about €560-565 per tonne CPT.

Published by: Julia Bolotova

Fastmarkets calculated its daily steel hot-rolled coil index domestic, exw Northern Europe at €643.75 ($697.81) per tonne on Friday, stable day on day.

The index was up by €7.50 per tonne week on week but down by €13.13 per tonne month on month.

Few suppliers were active in the market due to summer holiday absences, but earlier this week a leading European steelmaker increased its offer prices to €700 per tonne ex-works for October-delivery HRC.

Sources expected other major mills in Europe to increase their offers to similar levels shortly. But some German suppliers were still offering coil with October lead times at €640-650 per tonne ex-works in the week to Friday.

No transactions have been reported at €700 per tonne ex-works so far, and most buyers considered that price “not workable,” claiming that they could not increase prices in the secondary market.

“Demand [for HRC] remains very weak,” a distributor said. “And the September rebound that mills hope for seems to be unlikely. Only the automotive industry is performing more or less steadily [while] other end-user [steel] sectors are in decline.”

Fastmarkets’ calculation of its daily steel hot-rolled coil index domestic, exw Italy was €635.00 per tonne on Friday, up by €1.67 per tonne from €633.33 per tonne the previous day.

The Italy index was up by €5.00 per tonne week on week, but down by €5.00 per tonne month on month.

Italian market sources estimated tradeable values for September-October rolling HRC around €630-640 per tonne ex-works. But no official offers have been announced by local mills yet due to summer maintenance closures.

Before the stoppages, target prices heard from Italian integrated mills were around €700 per tonne ex-works.

Buyers, however, suggested that achieving such prices would not be possible in the near term, given the slow consumption and the availability of cheaper imports.

“Starting in October, the European market will be flooded by imported coil booked at rather competitive prices,” a trading source in Italy said.

Fresh overseas coil offers were coming mainly from India and Turkey for November-December delivery, at prices that were quite high and therefore uncompetitive — around €630-640 per tonne CFR.

Published by: Julia Bolotova

The digital solutions of Kaltenbach.Solutions GmbH have been used at Maschinenbau Kaltenbach GmbH in Neuenburg for about two years in the area of metal cutting.

There, the performance is measured directly at the machine tools and relevant data is clearly displayed. By analyzing the data, a measurable optimization of 15 to 25% could be achieved. A further increase in performance for the benefit of customers is planned for the future.

Maschinenbau Kaltenbach GmbH in Neuenburg am Rhein has been manufacturing complex machines, systems and lines for business partners and customers since 1958. Exclusive partnerships, some of which have existed for decades, form the foundation on which the company stands. In addition to assembly and machining, the company’s core competencies include manual as well as robotic welding of complex and safety-relevant components in accordance with DIN EN 1090 EXC 3. Jörn Landsrath, Managing Director Production, agreed on a strategic partnership in the field of IoT/Smart Factory with Kaltenbach.Solutions two years ago.

Maschinenbau Kaltenbach is successfully using the industry-specific IoT solution in metal cutting. There, the BoosterBOX measuring device records the performance directly on the machine tools and clearly visualizes the measured data. Precise analyses are possible on this objective basis. Employees are given greater transparency with regard to work processes and can thus also be more actively involved in planned change processes than before. A measurable optimization of 15 to 25% has been achieved so far. For the benefit of customers from different industries, a further increase in performance is targeted for the future.

Blastr Green Steel has signed a letter of intent for an alternative location for its pellet plant to supply feedstock to its ultra-low CO2 steel plant being developed in Inkoo, Finland.

Blastr has selected Lutelandet industrial area on the west coast of Norway, as a potential location to be developed for the company’s pellet plant. The LOI includes an area sublease agreement between Blastr and Lutelandet Offshore Site & Drydock (LLOF), which develops and manages the Lutelandet industrial site and port. The LOI also covers a cooperation between Blastr and Htwo-Fuel to secure grid and power capacity. Established in 2021, HTWO-Fuel AS aims to make hydrogen available as fuel for maritime shipping traffic along the west coast of Norway and produce green ammonia.

The plant will employ around 120 people and generate a substantial number of indirect jobs and economic activity in the surrounding area, Kallanish learns from the Finnish start-up.

Blastr says the pellet plant is a key part of its integrated green steel value chain which has the potential to deliver more than 90% reduction of Scope 1-3 C0₂ emissions compared to conventional steelmaking.

“Lutelandet is a highly attractive site for the production of feedstock to our steel plant with industrial infrastructure already in place, access to a North Sea deepwater port, and clean renewable energy from hydropower and nearby wind farms,” says Hans Fredrik Wittusen, ceo of Blastr Green Steel.

Christian Koehl Germany

Bulgaria’s steel industry saw its main indicators fall during the second quarter, Kallanish notes. Crude steel and finished products output each decreased compared to the previous three months and year-on-year, the Bulgarian Association of Metallurgical Industries (BAMI) says in its latest quarterly report.

Crude steel output reached 133,300 tonnes in Q2, down 14,800t over January-March and 11.1% weaker compared to the same period of last year. First-half crude steel production reached 281,400t, down 2.3% over January-June 2022.

Meanwhile, finished products output fell by 11,900t on-quarter to 260,000t, and was also 18.1% less on-year. Of this volume, long steel production was 199,300t, down 2.2% over the previous quarter and 20% lower y-o-y.

Q2 flat steel output reached just 60,700t, a decrease of 19.3% and 10.9% over Q1 and on-year, respectively.

Six-month rolled products output totalled 538,900t, 10.4% fall y-o-y.

Bulgaria’s April-June steel exports rose by 32,200t on-quarter to 210,200t but was 7.2% lower when compared to the 226,400t shipped abroad in Q2 2022. Long steel exports represented 154,000t of overall shipments. H1 exports reached 388,200t, which was 8.9% down y-o-y.

Domestic demand, meanwhile, slowed in the period. Q2 steel sales were 54,700t, a decrease by 28.8% q-o-q and 11.5% on-year, respectively. Six-month sales totalled 131,500t, or 1,000t more over H1 2022, BAMI confirms.

Todor Kirkov Bulgaria

Germany’s IG Metall union has given an early indication of its claims in the next round of regular wage talks with the steel industry. Kallanish understands that the talks will start in November.

Although it does not put a figure to its claims yet, the union alludes to general objectives that workers demand more money and shorter working hours. It cites a poll conducted among 11,000 workers to that effect. The upcoming round covers the northwestern and the eastern chapter of the union, including the main mills of the big groups thyssenkrupp, Salzgitter and ArcelorMittal.

The projected technical transformation of the German steel industry is one new aspect taken into consideration by the union, as it will lead to a reduction of jobs at steel mills. “Future plants will be run with fewer staff, as the blast furnace route will be converted from coke to hydrogen,” says Nils Knierim, one of IG Metall’s negotiators. This is why the union proposes a reduction of working hours, possibly to 32 per week, a key theme in order to maintain jobs.

The last collective bargaining in June 2022 resulted in the strongest wage increase in 30 years, amounting to 6.5%. That agreement runs for 18 months, ending 30 November 2023.

Christian Koehl Germany

Participants have largely withdrawn from the market because of summer-related closures across Europe.

Fastmarkets’ weekly price assessment for steel reinforcing bar (rebar), domestic, delivered Northern Europe, was €575-605 ($624-656) per tonne on Wednesday, unchanged since July 19.

Seasonality and depressed demand also resulted in quiet conditions in the Northern European rebar market, sources noted. As a result, prices were unchanged this week.

Fastmarkets’ weekly price assessment for steel wire rod (mesh quality), domestic, delivered Northern Europe, was €570-610 per tonne, unchanged since July 12.

Market participants said they do not foresee prices changing until the end of August or beginning of September, when mills begin to reopen.

Published by: India-Inés Levy

Prices were all unchanged, and sources expect the markets to remain flat and demand, nonexistent until mills reopen in September.

Rebar
Fastmarkets’ price assessment for steel reinforcing bar (rebar) domestic, exw Italy was €660-675 ($716-732) per tonne on Wednesday, unchanged since July 26.

Fastmarkets’ price assessment for steel reinforcing bar (rebar), domestic, delivered, Spain was €640-650 per tonne, unchanged since July 12.

Wire rod
Fastmarkets’ price assessment for steel wire rod (mesh quality), domestic, delivered Southern Europe was €580-600 per tonne on Wednesday, unchanged since July 26.

Published by: India-Inés Levy

A leading European flat steel producer pushed offers for October-rolling HRC to €700 ($759) per tonne EXW earlier this week, Fastmarkets reported.

Other producers were expected to follow the lead and increase prices to similar levels. But market sources doubted that new offer prices would be sealed in deals any time soon.

“Other mills will try to raise prices, but I’m not sure it will materialize in deals. Demand is very slow, not enough to boost such an increase,” a distributor in Northern Europe said.

Most trading sources agreed that “the market is not yet ready for that level.”

Buyers’ estimates of achievable prices for HRC in Northern Europe were around €640-650 per tonne ex-works.

One integrated mill in Germany was reportedly offering September-rolling coil within that range.

Another German mill claimed to have been sold out for 2023 volumes already, but this information was not widely confirmed by market sources.

In general, most buyer sources expected either HRC prices to rollover or mildly increase by “no more then €15-20 per tonne” in September.

Fastmarkets calculated its daily steel hot-rolled coil index domestic, exw Northern Europe at €643.75 ($697.95) per tonne on Thursday, up by €1.04 per tonne from €642.71 per tonne the previous day.

The index was also up by €5.83 per tonne week on week but down by €12.08 per tonne month on month.

Fastmarkets’ calculation of its corresponding daily steel hot-rolled coil index domestic, exw Italy was €633.33 per tonne on Thursday, stable day on day.

The Italy index was up by €0.83 per tonne week on week, but down by €11.67 per tonne month on month.

Italian steelmakers were expected to return to the market with fresh offers next week, sources said. The target level before summer closures, according to some integrated producers in the nation, was also at €700 per tonne EXW.

Similarly to Northern Europe, buyers in Italy deemed that level too high.

Italian buyers’ estimates of achievable prices were no higher than €630-650 per tonne ex-works.

The market for overseas coil was also quiet on Thursday.

Asian suppliers could offer November-December delivery to Europe, which was not suitable for EU buyers given the high safeguards-related risks.

Turkey and India, which both have enough allocations even for third-quarter deliveries, were offering coil at quite high prices.

Turkey-origin coil with end-October-November delivery was offered to European ports at €630-640 per tonne CFR, without anti-dumping duty.

India-origin HRC was offered to Italy at around €630 per tonne CFR for November delivery.

Published by: Julia Bolotova