Spaeter Group and Salzgitter sign green steel supply agreement

Germany’s Spaeter Group and steelmaker Salzgitter have entered into a partnering agreement for the delivery of green steel, the two companies said on April 25.

Operating out of Duisburg, the Spaeter Group is one of Germany’s largest family-owned steel traders with revenues of more than Eur2.1 billion in 2022.

The Spaeter Group has secured low carbon steel that will be produced and delivered by Salzgitter within the framework of SALCOS from the end of 2025, the two companies stated without giving more details about the deal when contacted by S&P Global Commodity Insights.

“The Salzgitter Group is always on the lookout for new partners to ensure that climate targets are achieved…” Eike Brünger, Managing Director Sales and Logistics, Salzgitter Flachstahl GmbH said. “The collaboration with the Spaeter Group based in Duisburg is further evidence that the customers are following us on our path toward producing green steel. The large number of our partnering agreements show that the markets for green steel are gaining traction in various customer sectors,” he added.

Producing green hydrogen using sustainably generated energy is a core element of SALCOS, as the steelmaker plans to switch its coking coal-based steel production to hydrogen-based processes from end-2025 and become carbon neutral by 2033. As part of the transformation, direct reduction plants and electric arc furnaces will be built to gradually replace its blast furnaces and converters.

Platts assessed hot-rolled coil in Northwest Europe stable on the day at Eur840/mt ($925.76/mt) ex-works Ruhr April 24, showed S&P Global data.

Author Annalisa Villa, annalisa.villa@spglobal.com