Hot-rolled coil prices in Northern Europe continued climbing on Tuesday September 1, amid expectations of lower material availability in coming weeks due to maintenance work at Europe’s largest blast furnace, operated by thyssenkrupp, as well as rising import costs that have limited transactions.
Thyssenkrupp will take offline its blast furnace No. 2, which is capable of producing approximately 12,000 tonnes of hot metal, for around 60 days, the company said in a press release shared with Fastmarkets.
“This measure will enhance the operational stability of pig iron production, safeguarding a core element of steel production at the Duisburg site,” the company said, adding that the partial refurbishment focuses on work on central cooling systems and the refractory lining in the lower section of the blast furnace.
Cooling components will be replaced, parts of the refractory material renewed, and additional copper cooling elements installed.
At the same time, additional maintenance work will be carried out on auxiliary facilities, including the gas cleaning and slag granulation systems. The work is intended to improve the blast furnace’s technical availability and ensure reliable operation for years to come.
In such conditions, market participants expect reduced availability of the material from the supplier until the end of the year.
Combined with higher import prices, this has supported the upward price trend.
“DDP pricing of imports is now not too different to domestic pricing hence giving local mills a lot more pricing power,” one local buyer said, reporting indications in Antwerp at €720-740 per tonne DDP.
Although trading activity was modest in recent days, sources reported transactions within €740-760 per tonne ex-works, versus €730-760 per tonne last week.
Offers were at €750-780 per tonne ex-works, depending on supplier.
Fastmarkets’ daily steel hot-rolled coil index domestic, exw Northern Europe was calculated at €748.33 ($868.21) per tonne on September 1, up by €7.08 per tonne from €741.25 per tonne on August 28.
The index was up by €18.33 per tonne week on week and by €37.08 per tonne month on month.
The Italian market was comparatively quiet. Metinvest remained out of the market, continuing to work on its engine issue.
Meanwhile, Acciaierie d’Italia (ADI) might be forced to stop steelmaking by October, following the recent court ruling.
Arvedi remained officially out of the market, with unofficial offers heard at €750 per tonne delivered or €735 per tonne ex-works.
At the same time, indications of tradeable levels were heard at €710 per tonne ex-works.
Fastmarkets’ daily steel hot-rolled coil index domestic, exw Italy was calculated at €712.5 per tonne on September 1, down by €5 per tonne day on day.
The index was down by €6.88 per tonne week on week and up by €6.25 per tonne month on month.
