EU iron ore supply at risk as subsidence threat grows in Kiruna
In Sweden’s Kiruna, which supplies around 80% of the European Union’s iron ore demand, a serious risk of ground subsidence has emerged due to the expansion of the underground iron ore mine.
Swedish steel giant Alleima AB has opened its new tube plant in China
Swedish steel producer Alleima AB has doubled its local production capacity by commissioning the second phase of its cold-working facility in Zhenjiang, Jiangsu Province, eastern China.
The company aims to shorten delivery times for its Asian customers and supply high-quality tube products with the new facility.
The expanded 12,500-square-meter plant was built with an investment of 193 million yuan (approximately USD 27.2 million). It will produce high-performance tubular products serving sectors such as petrochemicals, hydrogen energy, pulp and paper, and healthcare—including high-temperature and hydrogen refueling tubes that were previously imported.
The new plant is powered by solar energy, and the company uses more than 80% recycled steel. Alleima AB targets a 50% reduction in CO₂ emissions by 2030 compared to 2019 levels.
Carl von Schantz, President of Alleima AB’s Tube Division, said: “Over the past seven years, we have seen impressive development in the Asia region, with strong revenue growth in the chemical and petrochemical segment.” The company’s President and CEO, Goran Bjorkman, emphasized that the capacity expansion and wider product portfolio strengthen their ability to supply products locally in Asia and aim to serve China’s strong and growing market.
ABS launches new steel distribution hub in Sweden
Acciaierie Bertoli Safau (ABS), the steelmaking division of Italian equipment maker Danieli, is expanding in northern Europe with a new distribution and service centre in Sweden.
The facility, located in Värnamo, southern Sweden, will be part of the ABS Steel Nordic division and is scheduled to open by summer next year, Kallanish learns from the company.
The new centre will add to ABS’s existing sales office and supply customers in Sweden, Finland, Norway and Denmark. It will provide cut-to-length and custom services, as well as technical assistance for regional mechanical and engineering companies.
“ABS Steel Nordic marks an important step in the company’s international growth. Värnamo offers a strong industrial base and excellent infrastructure. With this project, we are strengthening our presence in northern Europe by offering certified steel, dedicated services and high-performance solutions,” says ABS chief executive Marco Di Giacomo.
The site will be developed in partnership with Swedish real estate company Aspehof Fastigheter, which specialises in sustainable logistics and industrial projects.
Sweden currently accounts for around 10% of ABS’s total European distribution volumes, excluding Italy. ABS entered the Swedish long special steels segment in 2012.
The Värnamo centre will stock a full range of special steels, including hot-rolled bars and ground and forged products in carbon, case-hardening, quenched and tempered and micro alloyed grades, in diameters of 20-300mm.
It will serve customers in mechanical engineering, automotive, mining, oil and gas and other high-performance sectors. The facility will feature fully automated, robotised cutting lines with the latest digital and process control technologies.
The investment aligns with the company’s strategy to grow in markets with strong commitments to sustainability. The steelmaker is investing a total €800 million ($926.83m) through 2029 for decarbonisation with the aim to cut emissions by 30% by 2030.
Natalia Capra France
SSAB postpones Luleå mill amid power delays
SSAB has announced a 12-month delay to the start-up of its new steel mill in Luleå, Sweden. The facility, originally planned to go online by the end of 2028, is now expected to be operational by the end of 2029, Kallanish understands.
The postponement stems from delays in upgrading Sweden’s power transmission infrastructure. Vattenfall Eldistribution, which is tasked with connecting the new mill to the grid, reported that necessary grid reinforcements will not be completed on schedule. The main holdup is linked to modernisation work at the existing Svartbyn grid station, which needs to be completed before the new Hällmyran station—key to SSAB’s connection—can go live, according to SSAB.
According to Vattenfall, Svenska kraftnät, the national grid operator, is facing technical challenges and outage scheduling constraints that have extended the construction timeline for Svartbyn. As a result, the broader grid expansion plan has been pushed back, directly impacting the mill’s timeline.
Despite the delay, SSAB confirmed that the total planned investment of €4.5 billion ($5.17 billion) for the project remains unchanged. The company has begun discussions with Vattenfall Eldistribution and Svenska kraftnät to develop a revised, sustainable timeline for the project moving forward, the company underlines.
Once completed, the Luleå mill will replace SSAB’s existing blast furnace-based production with a cleaner, more energy-efficient steelmaking process, aligning with the company’s transition toward fossil-free steel.
Almost ten days ago, SSAB and Danieli signed a contract under which Danieli will supply a highly automated technology solution for the steelmaker’s new mini mill in Luleå. The new Luleå mini mill will have a capacity of 2.5 million tonnes/year of SSAB’s specialty products, and a cold rolling complex to serve the mobility segment with a broader offering of premium products. It will produce hot-rolled strip in thicknesses ranging from 1.3mm to 25.4mm, in widths of up to 2,100mm and coils of up to 40 tonnes (see Kallanish passim).
Burak Odabasi Turkey
Electrolux sets recycled steel use target
Swedish home appliance manufacturer Electrolux says it aims to raise the share of recycled steel and plastic by weight used in its product manufacturing to 35% by 2030. This adds steel to the target for the first time and almost doubles the weight of recycled materials versus the previous target.
Steel and plastic are Electrolux’s two most highly used materials by weight. Adding steel to the target increases the material in scope to more than 40% of all material purchased by the group – around three times what was in the scope of the previous target, the firm notes.
In 2024, carbon steel accounted for 37% of Electrolux’s raw materials purchases, with stainless steel comprising 12%. It consumed 633,000 tonnes of steel overall in 2024, up 8% on-year, according to its 2024 annual report monitored by Kallanish.
The firm has signed an initial agreement with a European steel supplier for a more sustainable steel option, with the first delivery scheduled by the end of 2026. This steel will be produced with electricity from fossil-free sources and green hydrogen instead of coal, it says without revealing the name of the supplier. Stegra previously named Electrolux as one of its early customers.
Metinvest focuses on Finland, Sweden as new markets
Metinvest restructured its exports following the Russian invasion of Ukraine and has found new markets with the reopening of seaports, says chief operating officer Oleksandr Myronenko.
“First, we exported through Poland to the north, to the ports of Gdansk, Swinoujscie and others,” he told Ukrainian-based business magazine The Page. “There was also a logistics chain to the south, reaching the Romanian port of Constanta.”
“We primarily export iron ore to China and both iron ore and metal to Europe. Now we are even dealing to markets in northern Europe where we have never exported before – to Finland and a little bit to Sweden,” Myronenko said.
“They [Nordic customers] have posed a challenge as customers there are quite demanding and require very high-quality products. We have thus also started production of new types of products with increased iron content,” he added.
According to him, 2024 has been quite challenging since Metinvest did not anticipate such a drop in prices, which are currently 30-40% lower than forecast.
“In terms of steelmaking, the group managed to keep five blast furnaces operational – three at Zaporizhstal and two at Kametstal – along with the full range of rolled products. These plants have reached approximately 75% of their capacity compared with the pre-invasion situation. Considering the destruction of plants in Mariupol, Metinvest’s steel production now stands at around 35-40% of pre-war levels,” Myronenko noted.
Ukraine’s steelmakers are sustaining these production volumes thanks to the reopening of seaborne exports, Kallanish notes.
“We started the year with rather modest production expectations of around 1 million tonnes/month of iron ore,” Myronenko said. “However, the consistent operation of the ports ensured steady demand from Ukraine’s steelmakers, and by the end of the year we had reached 1.6-1.7m t/m. This represents 40-50% of capacity compared with 2021. Three of the group’s mining and processing plants are currently operating.”
The company was forced to suspend operations at Inghulets Iron Ore due to high tariffs for imported electricity during power outages. Given the specifics of the production chain and high energy costs, maintaining operations became inefficient, Myronenko continued.
“Central Iron Ore and Northern Iron Ore are operating quite well. Southern Iron Ore is severely impacted by power restrictions caused by missile attacks on Ukraine, forcing us to balance consumption,” he said. “We have simply suspended some of the equipment there.”
Svetoslav Abrossimov Bulgaria
GreenIron, Scandinavian Steel sign distribution agreement
GreenIron, the start-up venture that was firstly announced in spring this year, has entered into an agreement with Scandinavian Steel AB, a Nordic distributor of metals, Kallanish notes. Both companies are headquartered in Stockholm.
According to a statement by the companies, Scandinavian Steel will become the exclusive distributor of GreenIron’s fossil-free iron, to be produced in Sandviken, Sweden. The agreement covers regular delivery of hydrogen-based direct reduced iron, which will be offered to the Nordic and European markets, they state.
“This partnership is a milestone not just for Scandinavian Steel but for the entire industry. Offering fossil-free iron to our customers is not only important – it is essential,” says Peter Witz, Scandinavian Steel chief operating officer.
GreenIron is set to begin commercial production in Sandviken in 2025. The market has already shown significant interest in GreenIron’s fossil-free production, the company notes. In summer, it collected SEK 100 million ($9m) of additional financing, and on that occasion also announced a larger financing round within the next six to nine months.
Christian Koehl Germany
Marcegaglia is set to double stainless production at its site in Fagersta, Sweden
Marcegaglia Fagersta Stainless announced a Eur100million investment to double the company’s production volumes in the coming years, the company said on Nov. 6 during its 150th anniversary.
In Sweden, Marcegaglia produces around 60,000 mt of wire rod and aims to double its total production with the bar and stainless wire rod production.
“This strategic investment will expand our product offering to include a full range of stainless steel wire rod, bar, as well as rolled billets,” the company said. “The project, set to roll out over the next few years, positions Fagersta Stainless for continued growth, efficiency and sustainability in the global stainless steel Long Products market.”
At the end of September, Antonio Marcegaglia, chairman and CEO of Italy’s Marcegaglia Group, already anticipated to S&P Global Commodity Insights that the group was considering a “significant” project to expand capacity at its Fagersta site.
Fagersta Stainless generates approximately Eur160 million in turnover and employs about 250 people. Marcegaglia acquired Fagersta in 2023 as part of its purchase of the stainless steel products division of Outokumpu.
Platts, part Commodity Insights, assessed European 18-8 stainless steel scrap solids at Eur1,1170/mt on Nov. 1 on a CIF Rotterdam basis, stable on the day and up Eur10 on the week.
The 18-8 stainless steel scrap clips and solids are a commonly used reference for the grade-304 stainless steel scrap. The scrap contains a minimum of 16% chrome content and minimum of 7% nickel content.
Stegra receives €100m from Industrial Leap Fund
Swedish greenfield venture Stegra, formerly known as H2 Green Steel, has been granted about €100 million ($111m) from Sweden’s Industrial Leap Fund for its establishment of a near-zero-emission mill.
In 2018, Sweden introduced a national climate law and implemented an “Industrial Leap Fund”, as a means to support the commercialisation of innovation in the industry, Kallanish learns.
Stegra points out that the financial grant helps to better balance the playing field, in relation to steel companies in Europe that have received large support packages. “This creates the prerequisites for us to build up a long-term sustainable and competitive industry in Sweden,” says Stegra chief executive Henrik Henriksson.
Stegra adds that its climate calculations are based on CINEA’s methodology. CINEA is the European Climate, Environment and Infrastructure Executive Agency – the European Commission agency which manages decarbonisation and sustainable growth. The calculations have been verified by an external expert, DNV, and all input data has been validated by independent auditor PWC, Stegra notes.
Christian Koehl Germany
Sweden’s H2 Green Steel rebrands as Stegra, eyes projects in Portugal, Canada, Brazil
H2 Green Steel, the startup targeting to produce steel with up to 95% less CO2 emissions in Boden, Sweden, said Sept. 12 it is also looking at projects outside the country while announcing a rebranding to Stegra.
Stegra will explore the potential for growth over the long term, leveraging its experience at the Boden plant, it said in the press release.
“Stegra has a solid funnel of potential projects outside of Sweden that are being explored as part of a longer-term outlook,” the company said.
Projects are characterized by locations where the company’s customers need help with value-chain decarbonization and those that offer abundant access to renewable power and strong grid connections. The locations under consideration include Portugal, Canada and Brazil.
“Presently, a project in Portugal, where the site selection has been made and land reserved near Sines, is the most advanced. Notification on substantial allocation of the power needed has been made to Stegra and our local value chain partnerships continue to evolve,” said CEO Henrik Henriksson.
H2 Green Steel was launched in 2021 to reduce emissions in the steel industry within an ambitious timeline and it is Europe’s first greenfield mill in 50 years, set to produce low-carbon steel in a fully integrated production process, using electricity from renewable sources and green hydrogen.
H2 Green Steel’s project includes a giga-scale green hydrogen plant as an integrated part of the steel production facility. Use of hydrogen rather than coal in the production represents one of the main routes for the industry to reduce its CO2 emissions, with H2 Green Steel pioneering the technology in Europe. The facility will produce the green hydrogen necessary to make green iron and plans to supply 5 million metric tons of high-quality green steel to the market by 2030.
A Stegra spokesperson told S&P Global Commodity Insights that timeline for the Boden mill remains with the company that has started to put roofs on buildings in August and during summer received the first production equipment.
“We are building the railway on the site that will connect to the public railway. Presently we are around 1,000 construction workers on site and this will grow exponentially over the coming months,” she said.
Having secured funding of Eur6.5 billion for its venture, the company is one of the most watched energy transition startups as the steel industry is responsible for around 5% of CO2 emissions in the EU and 7% globally. The sector needs to develop and commercialize new low-CO2 technologies within the next 5-10 years to be in line with the EU’s climate targets.
Platts carbon-accounted steel assessments
Following market trend and recent technology innovations, Platts, part of Commodity Insights, launched Sept. 11 the first ever carbon-accounted rebar and medium sections assessments, after having launched in May 2023 the world’s first carbon-accounted flat steel assessment for HRC.
Platts assessed Northwest European carbon-accounted hot-rolled coil at Eur660 per metric ton ex-works Ruhr Sept. 11, stable on the day. Platts assessed Northwest European carbon-accounted rebar at Eur685/t EXW Northwest Europe on Sept. 11, Commodity Insights data showed.
Tradable values for the premium were reported at Eur30-40/t for CO2e content around 0.1-0.2 metric ton, and at Eur30-180/t for CO2e content around 0.1-0.5 metric ton, both under scopes 1-2.
Platts assessed European carbon-accounted medium sections at Eur882.50/t DDP Europe on Sept. 11. Tradable values for the premium were reported at Eur80/t for CO2e content around 0.1-0.2 metric ton, and at Eur30-180/t for CO2e content around 0-0.5 metric ton, both under scopes 1-2, according to data from Commodity Insights.
