ArcelorMittal increases offer prices for long steel products across Europe
The new prices were effective immediately and the company has been offering its long steel products across Europe at the higher levels. But, according to industry sources, the increased prices have not yet been accepted in deals.
The main reason behind the decision to increase the offer prices was the high production costs, according to market sources.
ArcelorMittal tried to increase its prices for long steel products across Europe at the beginning of June.
But due to slow demand from the construction sector, the main consumer of long steel products, prices in Northern Europe have been gradually declining since the start of June.
For example, Fastmarkets’ weekly price assessment for steel reinforcing bar (rebar) domestic, delivered Northern Europe, averaged €635 per tonne for the 7 days from June 1 to June 7, compared to €622.50 per tonne for the period from July 13 to July 19.
A price rebound has also not been observed also in Northern Europe’s mesh-quality wire rod market, Fastmarkets’ data shows.
According to Fastmarkets’ weekly price assessment for steel wire rod (mesh quality), domestic, delivered Northern Europe, the price for this product was stable at a weekly average level of €632.50 per tonne since the end of May.
European long steel producers hope that the new steel safeguard measures of the European Commission, effective from July 1, would have a positive effect on prices.
Notably, the European Commission approved a 15% cap per country on residual quotas for steel wire rod initially available for each quarter. The measure would impact imports from destinations like Algeria, Egypt, Malaysia, Indonesia, and India, which usually give the most competitive prices.
Thus, each country falling under the “other countries” category will be limited to delivering no more than 70,850 tonnes of wire rod to the EU in one year, Fastmarkets understands.
However, according to industry source, European buyers are still keen to book from these destinations due to the price gap with domestic prices.
ArcelorMittal to supply XCarb to Knauf Interfer
ArcelorMittal will supply German distribution group Knauf Interfer with CO2-reduced input material, Kallanish learns from the steelmaker.
At ArcelorMittal Europe – Flat Products, CO2 savings are achieved with the “XCarb recycled and renewably produced” label and also through the sale of “XCarb Green Steel Certificates” in line with customer requirements, the steelmaker says.
In partnership with ArcelorMittal Europe – Flat Products, Knauf Interfer will soon be using the “XCarb recycled and renewably produced” product in series production for several customer projects.
Knauf Interfer, in turn, can pass these CO2 savings on to its customers. In this way, the two partners want to safeguard the supply chain. Knauf is thus forming a central interface between steel manufacturers and customers, both through its steel service centres and through its own forming blanks and cold rolling activities, ArcelorMittal explains.
Knauf Interfer processes the steel into slit strip, sheets, formed blanks or cold-rolled precision steel for applications in segments such as drives, engines or seats.
Christian Koehl Germany
Tubemaker Wiederholt sources CO2-reduced steel from ArcelorMittal
Wiederholt, a German producer of precision steel tube, and ArcelorMittal have signed a memorandum of understanding to use CO2-reduced steel in production, Kallanish learns from the steelmaker. Both companies have been working together for several decades.
As part of the partnership, Wiederholt intends to source hot-rolled steel from ArcelorMittal with CO2 savings of up to 65% compared to traditional production methods.
The CO2 reduction will be achieved through “XCarb Green Steel certificates” and steel with the “XCarb recycled and renewably produced” label. According to ArcelorMittal, at least 75% recycled scrap is used in the production of this steel. The CO2 savings that Wiederholt can pass on to its customers are verified by environmental product declarations (EPDs), the steelmaker says.
Wiederholt’s precision steel tube is mainly used in the automotive industry, including shock absorbers, camshafts, steering parts, cardan shafts and stabilisers. It has committed to becoming carbon neutral in Scope 1 and 2 emissions by 2030, in accordance with the Greenhouse Gas Protocol.
Separately, ArcelorMittal Germany has announced that its Duisburg long products mill has been certified by organisation ResponsibleSteel, following a two-year audit by inspection company GUTcert.
Christian Koehl Germany
ArcelorMittal France tests MPI automotive steel blank line
ArcelorMittal France has inaugurated its Multi Part Integration (MPI) line assembled at its Montataire research centre, a line specifically designed for the production of automotive steel.
This laser ablation and welding facility will test different manufacturing processes and shapes of laser-welded blanks (LWB), also referred to as tailored blanks. It will produce prototypes for ArcelorMittal Tailored Blanks, the steelmaker’s division that supplies laser-welded and unwelded blanks to the automotive industry worldwide. In Europe, it has sites in Belgium, France, Germany, Slovakia, Spain and the UK, Kallanish notes.
The new MPI line caters to the requirements of automakers for simplified assembly and modular design in electric driving. An LWB is a sheet that combines different grades. Each grade can have different thicknesses and coatings. “The separate grades are laser welded together to create a single sheet of steel which has the best grade in the best place for strength and deformation. Each sheet can be hot or cold-stamped to give the part its final shape,” the steelmaker explains in a note. The result is a tailor-made solution employed in automotive manufacturing, specifically for the body-in-white and closures of a vehicle.
The new MPI now being tested at Montataire incorporates press hardened steel (PHS) grade and laser welding technology. This allows for the creation of a component that can be fine-tuned to meet various crash requirements and accommodate different types of motors.
The technology offers numerous benefits, such as reducing the number of structural parts and shaping steps, as well as minimising the surface area of the workshop. It also helps in reducing assembly times and weight, thanks to the utilisation of new-generation steel grades. The new line’s features will allow for the development of new laser welding processes on large blanks, ArcelorMittal concludes.
Natalia Capra France
ArcelorMittal Construction acquires insulation panel manufacturer Italpannelli
Steelmaker ArcelorMittal has completed the acquisition of Italpannelli, a specialized manufacturer of insulation panels for roofs and facades, it said in a statement May 31.
The acquisition includes two production sites operated by Italpannelli SRL in in Abruzzo, Italy and Italpannelli Iberica in Zaragoza, Spain.
According to ArcelorMittal, the two facilities operate seven production lines with a capacity of 13 million sq m/year of sandwich panels, serving the Central and Eastern European, French, German, Italian and Spanish markets.
Italpannelli will be incorporated into ArcelorMittal’s construction-focused subsidiary, ArchelorMittal Construction.
The company said the acquisition adds considerable strategic value to ArcelorMittal Construction, including access to new markets and an expanded product portfolio.
The latest announcement marks the second acquisition of Italpannelli businesses by ArcelorMittal, following the purchase of Italpannelli Germany in March 2023.
ArcelorMittal Construction CEO Jean Christophe Kennel said Italpannelli had built a formidable reputation as a high-quality supplier of lightweight sandwich panels and was “highly regarded in the market for its service and delivery.”
Platts, part of S&P Global Commodity Insights, assessed domestic prices for HRC in South Europe at Eur625/mt EXW Italy on May 30, unchanged on the day.
ArcelorMittal calls for internationally competitive prices for renewable energies, hydrogen
Steelmaker ArcelorMittal has called for guaranteed internationally competitive prices for renewable energies and hydrogen in sufficient quantities in the long term for Germany to successfully transition to carbon-neutral steel production.
The steelmaker May 17 called for a clear industrial policy, saying that the necessary economic policy framework needed to be put in place more quickly by Germany and the EU.
“Despite significant progress and an EU-approved funding commitment from the German government for the planned decarbonization projects at the flat steel sites in Bremen and Eisenhuttenstadt, the company is facing challenges, particularly due to high energy and hydrogen costs,” it said, adding that competitive energy prices were a significant factor in its final investment decision to decarbonize production in Germany.
ArcelorMittal said CO2-neutral pig iron production required a hydrogen price of around Eur2/kg to remain competitive, but hydrogen prices were Eur7-9/kg. It said it was also difficult to operate EAFs economically in the long term due to high electricity prices.
Platts, part of S&P Global Commodity Insights, assessed the cost of green hydrogen production via alkaline electrolysis in Germany, backed by renewable power purchase agreements, at Eur6.58/kg ($7.13/kg) on May 16, down from Eur7.77/kg a month before.
The assessment reflects one possible pathway for producing EU Renewable Energy Directive-compliant green hydrogen.
The recent debut auction under the EU’s European Hydrogen Bank, providing subsidy support for green hydrogen production, cleared at below 50 euro cent/kg, with seven projects totaling 1.5 GW in Iberia and the Nordics the winners.
The winning bids demonstrated both the competitive locations for green power production, along with a willingness of end users to pay a premium for the renewable hydrogen.
There were also several bids from projects in Germany for well under Eur1.50/kg, EC data showed.
Carbon neutral by 2050
ArcelorMittal aims to reduce its CO2 emissions in Europe by 35% by 2030 and reach carbon-neutral production globally by 2050.
In Germany, the company is converting its blast furnace technology to natural gas to reduce emissions and plans to eventually move to hydrogen-based direct reduction and electric arc furnaces.
In February, the German government announced Eur1.3 billion support ArcelorMittal’s plan to build EAFs in Bremen and Eisenhuttenstadt, as well as a direct reduction plant in Bremen.
The steelmaker said at the time the use of green hydrogen could result in savings of more than 6.3 million mt/year of CO2 by 2030 and produce 3.4 million mt of CO2-reduced steel in both plants.
“Decarbonizing our production is a top priority for us, but the current costs and future price forecasts for energy and hydrogen pose a considerable challenge,” ArcelorMittal Germany CEO of the flat steel plants in Bremen and Eisenhuttenstadt Thomas Bunger said in the statement.
“An industrial policy aimed at reducing these costs is crucial for our success and the success of the entire industry,” he said.
“We need the rapid expansion of renewable energies and the development of domestic hydrogen production while at the same time increasing hydrogen imports in order for the transformation to succeed,” ArcelorMittal Europe Vice President Lutz Bandusch said.
The steelmaker said establishing a “green lead market” was crucial to the viability of producing CO2-reduced steel competitively, while labeling initiatives could also be helpful to set additional incentives, such as in public tenders and government procurement.
ArcelorMittal also called for “decisive action” at national and EU levels against distortions of competition, which it said would include closing the remaining weaknesses in Carbon Border Adjustment Mechanism to reduce the risk of part of the industrial value chain migrating outside Europe.
“ArcelorMittal remains firmly committed to achieving CO2-neutral production worldwide by 2050. Active support through government measures is essential for the transition to a sustainable future,” it said.
ArcelorMittal produces CO2-reduced steel under its XCarb brand and subscribes to the ResponsibleSteel standard, which guarantees socially and environmentally responsible supply chains and production methods, it said.
Platts, part of S&P Global Commodity Insights, assessed domestic HRC prices in Northern Europe at Eur630/mt ex-works Ruhr May 16, down 8.7% since the start of 2024.
Authors: Jacqueline Holman, jacqueline.holman@spglobal.com, James Burgess, james.burgess@spglobal.com
ArcelorMittal Poland eyes two BF operation following restart
ArcelorMittal Poland (AMP) has completed the revamp of its Dabrowa Gornicza plant’s blast furnace no.2 and blown the unit in, the firm says.
The work, which began at the end of March, included the replacement of the furnace hearth refractory lining as well as the construction of a new cooling system and modern gas treatment plant. It will result in the reduction of 45,000 tonnes/year of CO2 emissions. Moreover, electricity consumption has been lowered nearly 400 MWh per year and over 18,000t of dust are recycled and reused in the steelmaking process.
The firm tells Kallanish it now plans to operate both blast furnaces at Dabrowa Gornicza and has no intention of idling either one. BF3 was restarted in January, following its idling last September due to weak demand, in preparation for the shutdown of BF2 for revamping, which cost PLN 720 million ($167m).
AMP saw crude steel production fall 15% on-year in 2022 to 3.4 million tonnes, thereby dropping below 2020-pandemic output of 3.9mt.
Adam Smith Poland
