German producer Salzgitter expects strip steel shipments to continue at a somewhat lower level for the rest of 2024, with section shipments at around the same level, and crude steel production running at a slightly reduced rate, according to its interim earnings Aug. 12.
In the first half of the year, Salzgitter produced 2.69 million metric tons of crude steel, slightly up on the same period of 2023, when it registered 2.51 MMt. In the same period, shipments were 2.81 MMt against 2.77 MMt in H1 2023, but shipments sales moved down to Eur2.47 million mt from Eur2.69 million mt.
Salzgitter said it expects the economy to remain weak in the heavy steel plate market, with order intake forecast “to drop below the already weak year-earlier level, with prices under intense pressure.”
The company said that pipe plate output is only likely to benefit around year-end, following delays in awarding projects for large-diameter pipes, while there will likely be a significant downturn in volumes in its medium-diameter pipe segment. In the precision tubes group, demand remains hesitant following on from the previous year, it said.
In the company’s steel processing business unit in H1, Salzgitter rolled 520,000 t of steel products against the 538,000 t recorded in the same period of 2023.
A generally improved result is expected for the trading business unit in 2024, thanks to more stable prices than in H1 2023.
Platts, part of S&P Global Commodity Insights, assessed the 62% Fe Iron Ore Index at $98.85/dry metric ton CFR North China on Aug. 12, down 45 cents/dmt from Aug. 8, in line with tradable values.
Salzgitter said it is also on track in its low carbon transformation program, which aims to fully convert the integrated steelworks of Salzgitter Flachstahl by 2033. At the moment, the company is in the process of building a 100 MW electrolysis plant, a direct reduction plant and an electric arc furnace.
Platts assessed Northwest European hot-rolled carbon-accounted coil at Eur725/t ex-works Ruhr Aug. 9, down Eur10 on the day.
The assessment was calculated in line with the sum of Platts daily carbon-accounted steel premium assessments and Platts daily hot-rolled coil price assessments in Northwest Europe.
Annalisa Villa
