Flat steel spot prices in Romania stable but trade slow
Despite the weakness that has been present in the market for some time, Romanian flat steel traders have kept prices stable week on week.
On the other hand, according to reports, the sole domestic flat steel producer has yet to begin production, although offers and sales are still heard for March shipment. However, according to market speculation, the sole flat steel producer is still facing economic challenges and delays in completing deliveries despite receiving government assistance.
Currently, prices for domestic origin hot rolled coil (HRC) in Romania have remained stable week on week at €590-600/mt CPT. Likewise, traders’ prices for hot rolled sheets (HRS) and cold rolled sheets (CRS) have remained unchanged week on week at €725-750/mt ex-warehouse and €835-850/mt ex-warehouse, respectively.
Meanwhile, while no new import deals have been announced, HRS and CRS offers from Ukrainian suppliers have remained stable week on week at €650-660/mt DAP and €740-750/mt DAP, respectively. Turkish mills, on the other hand, have raised their offers somewhat compared to last week, with FOB prices ranging from $530 to 540/mt, freight costs of roughly €25/mt, coming to Romania at around €535-545/mt CFR.
ArcelorMittal Hunedoara reduces production amid lack of orders
Romania-based ArcelorMittal Hunedoara has reduced production from 9 December until the end of the year due to a lack of orders, the firm says in a statement filed with the Bucharest Stock Exchange.
“In accordance with the provisions of law and regulation, we inform you of the temporary reduction of the company’s activity,” the message says. “This has been made considering the economic difficulties faced by the company caused by the lack of orders.”
Employees affected by the move will be paid 75% of their base salaries during this period, it adds.
ArcelorMittal did not reply to Kallanish request for comment.
The Romanian firm took similar measures in 2022, also due to a lack of orders.
In 2020, it also stopped production temporarily due to the Covid pandemic.
Electric arc furnace-based Hunedoara, part of the ArcelorMittal Europe – Long Products division, produces sections, billet and merchant bar, employing 584 people and some contractors. The firm produces 200,000-300,000 tonnes/year of crude steel.
Hunedoara remained part of ArcelorMittal after the steelmaking group sold its flagship Romanian Galati steelworks to Liberty Steel in 2019.
Svetoslav Abrossimov Bulgaria
Turkey’s Borusan Pipe commissions Romania service centre
Borusan Pipe, a major Turkish steel pipe producer, has commissioned its second-largest investment in Europe, in Ploieşti, southern Romania.
At an investment of €15 million ($16.6m according to 13 September exchange rate), the facility, for which construction work began in March 2023, will carry out cutting and finishing operations of cylinder tubes, reserve tubes, and monotubes for special use in shock absorbers. The unit, which will produce using technologies such as short-cutting, brushing, and in-line washing, will serve shock absorber manufacturers in the automotive supply chain.
The Romanian government supported Borusan Pipe’s investment with state aid of €5.83m, notes Kallanish.
The Romania service centre is expected to contribute $8m to the company’s total turnover in the second half of the year as it gradually begins operations.
“Another significant step towards our goal of being a local player in international markets is the inauguration of our new service centre in Romania,” says Borusan Pipe executive vice present Ali Okyay. “Being a regional player in Europe, we will be near our clients and offer the required supply chain flexibility. Through this investment, we will get closer to our goal of becoming the continent’s pre-eminent integrative solution provider and producer of steel pipes, particularly in eastern Europe.”
Burcak Alpman Turkey