Thyssenkrupp said Aug. 13 that blast furnace operations at its Duisburg steelworks remain largely unaffected by low Rhine water levels, though the German steelmaker is monitoring the situation closely as weak navigability continues to strain inland raw-material logistics.
The Rhine, a key transport artery for European industry, has seen its navigable depths decline due to prolonged heat and limited rainfall. The low water levels have forced barges to sail with reduced cargoes and prompted some steel supply chain participants to consider alternative transport, including road freight.
Duisburg is one of Europe’s largest steelmaking hubs and relies heavily on stable inbound logistics for raw materials such as iron ore, coal and other bulk inputs.
Speaking during Thyssenkrupp’s second-quarter earnings call Aug. 13, CFO Axel Hamann said the company had seen no significant impact on blast furnace operations at Duisburg.
His remarks followed Thyssenkrupp’s July 22 statement that it was partially suspending its own barge deliveries of raw materials to the site and would instead charter private ships that could continue operating in the shallower waters.
“We have set up a dedicated task force in the steel division to monitor it [Rhine water levels],” Hamann said during the call. “We have a few options to adjust our production and the operating mode of our facilities to some extent, so that we can work longer with the inventories we have”.
Hamann said Thyssenkrupp was also examining potential road transport options. He said customer supply was not currently at risk, but warned that “if the situation really deteriorates and shipping were to come to a standstill, we could not rule out an impact on our results.”
Water levels at the Kaub chokepoint on the Middle Rhine were about 12 cm late on Aug. 12, with the German water authority WSV forecasting levels to fall below 10 cm starting Aug. 15.
Rhine ships have no legal obligation to transport goods when water levels fall below 80 cm, while 40 cm is generally considered the threshold for a full halt to barge traffic. A small number of modern, lightweight barges can still sail at lower depths with minimal cargoes, but few ships can navigate key pinch points under such conditions.
Platts, part of S&P Global Energy, assessed domestic hot-rolled coil in Northern Europe at €720/mt ex-works Ruhr on Aug. 12, up €5/mt day over day, and in Southern Europe at €710/mt ex-works Italy, stable day over day.
Author: Euan Sadden
