Italian steelmaker Arvedi has signed an agreement with Spanish multinational Gestamp on the supply of its low-emission steel brand, Arvzero, the company said July 3.
The agreement will also allow Gestamp, which makes metal components for the automotive industry, to return scrap steel from the production of stamping parts to Acciaieria Arvedi, Italy’s largest flat steel propducer.
The steel supply deal will have immediate effect, an Arvedi spokesperson told S&P Global Commodity Insights, although neither company gave any details on the volume involved.
“With this agreement, we continue our circular economy roadmap in line with Gestamp’s ESG strategy,” Gestamp Chief Purchasing Officer Javier Imaz said.
“Our collaboration represents an important step for steel products with a sustainable supply chain,” Acciaieria Arvedi Vice President Fabio Baldrighi said.
Acciaieria Arvedi produces hot and cold-rolled flat products, welded tubes, and precision strips, with a total yearly production of over 5 million mt. It manufactures steel coil from recycled scrap for various sectors, including the automotive industry.
The company makes the Arvzero carbon steel product at its Cremona works and processes it at the Cremona and Trieste sites. All direct emissions from the production process are compensated in accordance with the parameters set by Scope 1 and Scope 2 of the Greenhouse Gas Protocol, the company said.
Many companies in different industries across the steel value chain are buying increased volumes of low-carbon and low-stainless “green” steel to reduce their Scope 2 and 3 emissions, closing supply agreements to secure low-emission steel for their products.
Platts, part of Commodity Insights, assessed Northwest European hot-rolled carbon-accounted coil down Eur10/mt on the day at Eur750/mt ($805.275/mt) ex-works Ruhr July 2. The assessment was calculated in line with the sum of the Platts daily carbon-accounted steel premium (CASP) assessment and Platts daily hot-rolled coil price assessment in Northwest Europe.
