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Aperam increases September alloy surcharges
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French stainless steel producer Aperam has increased September alloy surcharges for its austenitic range of flat stainless steels for Europe by over €100/tonne ($117) on average versus August, Kallanish learns from the company.

The surcharge for grade 304 (1.4301) has gone up significantly from €2,056/t this month to €2,159/t effective 1 September. For grade 316 it has increased from €3,167/t to €3,319/t. Grade 309S, a heat-resistant stainless steel used in high-temperature applications, has seen its surcharge hiked from €2,752/t to €2,912/t from 1 September. The surcharge for the most popular ferritic grade, 409, has also risen from €823/t to €833/t, the company reveals.

Offers for nickel cash buyers were at $18,611/t on 25 June and reached $19,225/t on 25 August, Kallanish notes.

Natalia Capra France
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Chinese long steel offers decline in late-August
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The Chinese construction steel market continued its downward trend in late-August, and steel mills to chose to cut their offers in response to falling spot prices, Kallanish notes.

In the last ten days of August, Shagang cut CNY 150/t ($23.14/t) from its rebar, high-speed wire rod and rebar in coil prices. Zenith and Yonggang meanwhile cut CNY 100/t from all products. The drastic changes in the market have forced steel mills to subsidize their agents to make up for their loss-making sales. Shagang announced CNY 250/t subsidies to agents, while Yonggang and Zenith planned CNY 140/t subsidies.

Market shipments are basically stable compared with the past ten days, but the rebound of market sales this week means a tighter market going into September. It is expected that steel mills will increase offer prices in early-September.

Chinese construction steel ex-works prices (including VAT), 21-31 August 2021

Zie bijlage.

By Kallanish Team
Bijlage:
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Brazil`s pig iron market quietens, price drops
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Brazilian pig iron export prices have fallen as anticipated in mid-August. This follows some movements seen in the international market during last week, such as poor demand from the country`s main buyers, the US and Mexico, Kallanish learns from local market participants.

According to sources, the average pig iron export price is around $510/tonne fob Brazil in the last full week of August. This is $30/t down since the beginning of the month.

“During the last two weeks, Brazilian pig iron producers reduced their export prices. Demand from North America continues to be lower, with only one transaction for 30,000 tonnes to the US confirmed last week. New bids are at around $500-510/t fob,” an international trader says.

Another local market source suggests that new lower prices could last until the end of the second week of September. “The domestic pig iron market is quietening, while most mills are saying that domestic demand is good. Lower purchases from abroad and the devaluation of local currency vs $US, however, could bring a new price adjustment," he adds.

According to the local steelmakers’ association Instituto Aço Brasil (IAB) July pig iron output reached 2.38mt, 0.1% more m-o-m and 18.6% higher over the same period in 2020. Seven-month production amounted to 16.3mt, 20.3% more on-year.

Brazil exported 320,000 tonnes of pig iron in July, 27% higher month-on-month but 14.8% less on-year. This volume was the second-highest exported by the country so far in 2021 after the 351,000t in January. Seven-month pig iron shipments reached 1.98 million tonnes, down 14.1% compared to January-July 2020, the latest Brazilian Ministry of Development, Industry and Foreign Trade (Mdic) report shows.

The main destinations for Brazilian seven-month pig iron exports were China and the US, which each took around 23% of shipments. The Netherlands and South Korea followed with a share of 12% and 6.4% respectively. Meanwhile, Japan absorbed 5.7% of Brazil’s pig iron exports in the same period.

Todor Kirkov Bulgaria
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Liberia Steel plant shut down after accident
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Liberia's Sethi Ferro Fabrik Incorporated steel company has been shut down after an accident took place on 18 August.

The Liberian Environmental Protection Agency (EPA) prepared a preliminary report that elaborated the accident, according to a press release seen by Kallanish.

EPA Executive Director, Prof. Wilson K. Tarpeh said during the press conference, “following a thorough scientific investigation of the situation, it’s been understood that none of the workers had on approved aluminized apparel for protection when the incident occurred, causing six workers injured and one dead.”

The factory should set up a health, safety and environment unit to enforce safety protocols and ensure that all workers at the factory participate in daily safety drills and are acquainted with the required safety protocols [details given in the press release], concluded Tarpeh.

Meanwhile, the factory remains closed until the announced remedial measures are instituted.

The Sethi Ferro Fabrik steel plant is the only steel manufacturing plant currently working in the country, and is located in the capital's Monrovia Industrial Park in Gardnerville. The company is using scrap for the production of steel rods at a plant which was dedicated by President George Manneh Weah in 2019 (see Kallanish passim).

Burak Odabasi Turkey
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Liberty Ostrava sees strong market continuing
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Liberty Steel’s Czech Republic steelmaking arm forecasts the current positive momentum to continue in the second half of 2021. Liberty’s plant in Ostrava has registered strong financial results for the second quarter of this year with EBITDA increasing 35% compared to Q1 to CZK 2.6 billion ($119.66 million), “the plant’s best quarterly performance since 2011” the company says in a note sent to Kallanish.

In Q2, Ostrava shipped 684,000 tonnes of steel products, up 12% on the previous quarter while output was 80% higher compared to Q2 last year.

Liberty Ostrava is targeting a production increase to reach 2.5m tonnes this year, up from around 1.7m in 2020. The plant continues to run at full capacity and implement its modernisation plans on the path to greensteel production and carbon neutrality.

Q2 revenues stood at CZK 13 billion, up 26% on Q1 2021 and more than double compared to the same quarter in 2020. This was due to Ostrava´s flexibility, which allows it to switch its product mix between long and flat steel products depending on market needs.

“This adaptability has meant the plant has been able to effectively maximise returns from the strong flats market over the last six months," the company concludes.

Natalia Capra France
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Russia expects stainless prices to increase: USSA
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Russian stainless steel imports increased in January-July and the main supplier was again China, says national special steel association USSA. Russian stainless intake was up 5.4% on-year to 241,520 tonnes, Kallanish notes.

In monetary terms, Russian companies paid over $621 million for the import of foreign stainless products, which is a record, USSA observes.

However, in July alone Russian stainless intake decreased by 18.5% compared to June to 34,700t.

Imports of stainless cold rolled flat products decreased 30.9% on-month, but seamless pipes intake increased by 13.5%.

Russia increased imports of stainless steel in 2020 to 383,200t, up by 3.8% on-year.

The leading manufacturers of imported stainless products in June were again based in China, whose share in the total volume was 45.6%. India’s share was 13.4%, followed by Indonesia with 6%, Taiwan with 5.8% and Ukraine with 3%.

However, China announced that some steel products will see their export tax rebates cancelled from 1 May, which will lead to export price increases (see Kallanish passim).

According to experts, traders are afraid that the imposed restriction on steelmaking by China will affect the stainless steel market and are trying to replenish their stocks, the association observes.

“Rising prices in the foreign markets and problems with the formation of orders for the imported stainless steel limits the supply for domestic customers,” USSA says. “An increase in the key rate and a further increase in prices in the foreign market will contribute to the growth of prices in the Russian market.”

Production at Russia’s Krasny Oktyabr (Red October) decreased in July compared with the previous month (see Kallanish passim). It amounted to 16,691t of stainless steel, down by 24.8% on-month. In June, production was 24,900t of stainless steel.

Svetoslav Abrossimov Bulgaria
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CIS steel output rebounds in July
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CIS crude steel production increased in July versus June, according to the latest worldsteel data monitored by Kallanish.

Regional output amounted to 9.2 million tonnes, up by 11.2% year-on-year. In June production was 8.9mt, up 9.1% y-o-y (see Kallanish passim). January-July CIS crude steel production was also up by 9% on-year to 62.5mt.

Russian production is estimated to have reached almost 6.7mt in July, up by 13.4% y-o-y. Cumulative steel output was 44.9mt, up 9.2%.

The second-largest producer in the region, Ukraine, saw its crude steel output last month almost flat compared with same period last year to 1.87mt. However, year-to-date output totalled 12.7mt, less by 1.2% y-o-y.

Third-largest steel producer Kazakhstan saw production in July increase by 4.2% on-year to 335,000t. January-June output reached 2.47mt, up by 34%.

Belarus, the fourth-largest producer, saw crude steel output last month reach 220,000t, up by 31% on-year. Cumulative steel output was however almost flat on-year at 1.5mt.

Russia remained at fifth place in the ranking of top ten global steel producers in June, the worldsteel data show.

Fitch Ratings forecasts Russian steel demand in 2021 may increase by 4-6% on-year amid growth in construction volumes thanks to government support, the implementation of infrastructure investment projects, and the gradual recovery of the automotive industry.

The agency believes the negative effect of the new wave of Covid-19 will be much more moderate, as the Russian government aims to avoid another lockdown.

Strong cost positions have allowed major Russian flat steelmakers like Severstal, NLMK and MMK to maintain high utilisation rates throughout the pandemic and generate sufficient cash flows to fund large capital expenditure, Fitch observes.

Svetoslav Abrossimov Bulgaria
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Semiconductors to reduce automotive output by 9m: study
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Almost 9 million fewer vehicles will be produced in 2021 due to the global shortage of semiconductors, according to a study by the Boston Consulting Group (BCG).

In the first quarter of 2021, the production losses of global automakers amounted to approximately 1.4 million units, Kallanish notes. Production fell the most in Europe by 428,990 vehicles, China by 364,774 and North America by 354,442 vehicles.

In the second quarter, production fell by another 2.6m units, with the most in North America - 866,924 units, Europe - 743,100 and China - 419,600.

The most significant losses of production in the first half of this year were suffered by automakers Ford with a drop of more than 700,000 vehicles, Stellantis with almost 600,000 units and Renault Nissan-Mitsubishi, with a drop of more than 415,000.

In the third and fourth quarters the fall will be from another 3-5m units, BCG observes.

“The shortage of chips in the global market arose as a result of the Covid-19 pandemic of a new type,” the consulting group says. “This provoked a significant increase in demand for household computers and intelligent medical equipment against the background of forced quarantine closures of car factories around the world and a drop in demand from automakers.”

The lifting of restrictions and the rapid recovery of production in the automotive industry coincided with the reorientation of chip manufacturers to consumer electronics and there was a shortage, according to BCG. “Shipments of chips are gradually resuming, but the pandemic continues to make its own adjustments.”

“A more active recovery in production in the third quarter is not due to the outbreak of the delta strain. We expect the supply of microchips to reach a level where it will be able to meet the demand of the industry, no earlier than the second half of 2022, " claims BCG’s chairman in Russia and CIS Vladislav Butenko.

Svetoslav Abrossimov Bulgaria
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Rebar, wire rod markets slump in ASEAN
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Market sentiment for wire rod and rebar imports has worsened in ASEAN, mainly on surging Covid-19 infections in the region, Kallanish notes. Demand for steel has fallen sharply because of Covid-19 curbs. Uncertainties over when these curbs will ease continue to depress business confidence and buying interest.

In Manila, offers for blast furnace 6.5mm wire rod from an Indonesian mill has slipped to $730-735/t cfr. Offers have fallen by around $20/t weekly in the past two weeks. A Manila trader does not think that there were takers. “The market got spooked after such a sharp drop from $750-760/t from just late last week to early this week,” he says.

A Manila buyer is bidding $700/t cfr for induction furnace wire rod from India, but the Indian mill has countered at $720/t cfr. "Customers will not pay higher than $710/t cfr today,” a regional trader notes. There is also the issue of a 1% import duty for Indian wire rod imports compared to 0% for ASEAN material, Philippine traders note. Kallanish lowered its SAE 1008 6.5mm diameter wire rod assessment on Thursday to $725-730/t cfr Manila, down $15 on-week.

Meanwhile, rebar demand in Singapore has turned bearish amid delays of public construction projects main due to existing labour shortages at sites on border controls, as well as a new Covid infection cluster arising in a workers’ dormitory.

Offers for Indian theoretical-weight rebar remained at $730-735/t cfr. A Singapore trader has heard that Turkish rebar is also available at around this same level but doubts that Singapore buyers will book the large tonnage associated with a Turkish bulk cargo. Traders also say that buyers will not pay at this level because they are bidding much lower. Bids are currently as low as $705-710/t cfr Singapore, a trader says.

Recent news that a public housing project in Singapore for more than 2,900 units was further delayed due to the main contractor going bust has added to the market gloom, trading sources say. Kallanish assessed BS4449 500B 10-40mm diameter rebar at $720-730/t cfr Singapore theoretical weight, down $7.5 on-week.

Anna Low Singapore
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Chinese rod export remains despite rebounding domestic prices
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The Chinese wire rod market has returned to quiet again, and traders focussing on other more active trades, Kallanish notes.

Although the domestic market has changed significantly in the past week with a rebound in long product prices, wire rod export offers have remained unchanged. The difficulty of trading in the face of high prices, uncertainty over policy and weak demand has become a dilemma for traders, which are turning away from export markets. Chinese steel mills have also had to shelve the export of some products under governmetn and industry pressure. The China Iron and Steel Association (CISA) has proposed self-regulation of export volumes as an alternative to strict government controls and taxes.

Wire rod export offers from Chinese mills remain at $820-825/t fob China. Some private steel mills are offering current stocks at as high as $840-845/t fob China. A market trader told Kallanish that export prices for Chinese wire rod are higher than other competitors in Asia, but domestic traders have made significant profits from the increase in local steel prices. This is why they prefer to maintain inventory for domestic sales.

On Thursday, Kallanish assessed 6.5mm diameter mesh-grade wire rod at $820/tonne fob China, unchanged from a week earlier.

By Kallanish Team
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Stainless, batteries to compete for same pricey nickel
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London Metal Exchange nickel prices look to close out August roughly equal to where they began.

Behind the scenes, however, major shifts are taking place in the industry as stainless steel’s volume dominance is challenged by the rise of electric vehicles.

The LME puts cash nickel at $19,225/tonne as of 25 August, down slightly from the month’s opening price of about $19,324/t.

Both are up mightily from the New Year price of $17,344/t as well as the yearly price trough, which was reached in the March-April timeframe and kept prices bouncing around the $16,000/t mark.

The high for the year occurred in late February at $19,689/t.

The multi-year high currently enjoyed by nickel is a product of several disparate factors, including returning stainless steel production, according to a recent Bank of America report (see Kallanish passim).

The growing importance of electric vehicles, however, is difficult to ignore - particularly as newer battery formulations eschew cobalt and its problematic human rights record. At least one major EV producer - Tesla - has produced nearly all-nickel battery chemistries to sidestep the cobalt issue.

Tesla’s battery chemistry evolution will take three forms, roughly equal to three performance/pricing levels. High iron batteries occupy the lowest run, with nickel-manganese in the middle and high nickel versions atop.

While the company has hinted that it might gradually increase the importance of its iron line, nickel supply remains paramount.

At Tesla’s Battery Day Event last year, senior vice president for powertrain and energy engineering Drew Baglino said that battery costs are 35% production and 65% metal. Of that, nickel makes up 35% of the cost, with lithium occupying 25% and cobalt 5%.

Simpler nickel formulations, such as matte, can now be utilised in battery production - effectively merging the battery and stainless nickel supply chains.

“We can eliminate billions in battery-grade nickel intermediate production...and we can also use that same process to directly consume nickel powder from recycling EV and electric grid batteries,” Baglino says.

Dan Hilliard USA
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Ningxia announces production controls
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Ningxia Province in northwest China plans to impose production restrictions on steel and ferroalloy companies in the second half of this year, Kallanish notes.

According to an internal document circulated on the market, Ningxia Iron & Steel needs to operate at 80% of the designed capacity from August, and stop production after the plant's energy consumption quota are used up. The steelmaker is running one 1,350 cubic-metre and one 1,580 cum blast furnaces, with a total capacity of 2.59 million tonnes/year.

Meanwhile, 14 ferroalloy producers with 44 submerged arc furnaces will face varying requirements on limitations. Most of them are required to stop half of their equipment from August and to stop all furnaces once the plants' energy consumption quota are used up.

News of production restrictions and power cuts have prompted expectations of lower supply. Amid tight supply of ferroalloys, it is expected that production restrictions will lead to a rebound in market confidence. The production reduction of steel products in Ningxia will also boost market sentiment in support of the rising market this week.

By Kallanish Team
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Australia to extend duties on Romanian chrome bar
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The Australian Anti-Dumping Commission announced on Thursday that it will continue to impose anti-dumping duties on chrome-plated steel bars imported from Romania. The new duties will take effect from 8 September 2021, Kallanish notes.

All Romanian exporters are to face a 40.7% interim dumping duty (IDD). The product subject to the anti-dumping measures is chrome-plated bar in circular cross section, with chrome plating of any thickness, with lengths not greater than 8 metres and diameters of 18-170mm. These mainly consist of grades such as SAE/AISI 1045 and SAE/AISI 4140.

The period of investigation is from 1 October 2019 to 30 September 2020. The products involved come under HS codes 7215.50.90.54, 7215.90.00.55, 7228.30.10.70, 7228.50.00.54, 7228.60.10.72, and 7228.60.90.55.

Since 2016, Australia has applied anti-dumping duties on chrome bars originating in Romania. Romanian exporters Cromsteel and Nimet have incurred a 22.4% and 35.3% duty respectively, with all other companies paying 66.9% (see Kallanish passim).

By Kallanish Team
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Indian imported scrap market recovers on active demand
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Indian imported scrap offers rose on the back of demand coupled with the bookings by mills for October deliveries.

UK- and US-origin shredded scrap offers are hovering at $525-530/tonne cfr Nhava Sheva, a market source says. However, European shredded scrap offers plunged on-week to $520-525/t.

“Owing to holidays in Europe, very limited buying from the European countries is happening. We are focusing more on UK and US origin,” says a west India-based trader.

“Market is recovering, mills are stocking for festive season falling in October and for the year-end. The market is expecting a boost in demand from the construction sector after the festival. We can start witnessing the rise in September itself,” observes the trader.

Kallanish assessed UK-origin shredded at $525-530/t cfr Port Qasim and $535-540/t cfr Port Chittagong, Bangladesh. Trade of 20,000t for HMS 1&2 80:20 containerised scrap was heard at $505/t in Bangladesh on Tuesday.

United Arab Emirates-origin HMS 1 scrap is offered at $485-490/t cfr Nhava Sheva. UAE-origin HMS 1&2 80:20 is offered at $480-485/t. West Africa-origin HMS 1&2 is assessed at $475-480/t cfr Mundra and $480-485/t cfr Goa respectively. UK-origin HMS 1&2 80:20 is offered at $475-480/t. EU-origin turning scrap is being traded at $425-430/t cfr Nhava Sheva.

This week in India, ship scrap from containers is reported at $580/light displacement tonne, remained stable on-week. Scrap from dry bulkers and tankers is reported at $560/ldt and $570/ldt respectively.

“The domestic steel plate prices in Bangladesh and India have been fluctuating down by about $20-30/ldt. These up and down fluctuations have caused many buyers to go on ‘wait and watch’ mode in the hope that the domestic steel prices will stabilise,” says an Alang based trader.

Sayed Aameer India
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Philippine rerollers book Vietnamese billet for supply contracts
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Rerollers in the Philippines resumed import buying of billet earlier this week, Kallanish notes.

In Manila, three parcels of Vietnamese billet were ordered at $675-680/tonne cfr. The orders were for 25,000t and for two 10,000t cargoes for late-September and early-October shipment. The booking price was $640/t fob Vietnam, Vietnamese trading sources say. The delivered cost includes the freight cost from Vietnam of around $30/t, other handling costs and margins, Kallanish understands.

Except for 5,000t of the orders which were for 3sp grade billet, the remaining 40,000t was for 5sp grade billet. The rerollers placed the bookings because they have pending contracts to produce rebar for high rise buildings, a Manila trader says. They do not want to buy but they have an obligation to serve the contracts, he adds. Buyers were bidding at $670/t cfr Manila last Friday.

In China, Indonesian blast furnace 3sp billet for October shipment was ordered at around $675/t cfr earlier in the week. The buying mood changed again on 26 August on account of the fall in the Chinese steel futures. “Today prices have dropped. There is no bidding today,” a Chinese trader says. The market could remain volatile, he adds. The above-mentioned Indonesian mill’s current offers are tagged at $680/t cfr China.

Anna Low Singapore
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Ferrous futures fall on slow inventory decline
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Weekly inventory and production data on Thursday shuggested a slow recovery in steel demand. Chinese rebar and hot rolled coil futures fell back to Monday’s levels however as this was not enough to support market sentiment, Kallanish notes.

On the Shanghai Futures Exchange the January 2022 rebar contract closed CNY 128/tonne lower than Wednesday at CNY 5,108/t ($788/t), and the same contract for hot rolled coil closed down CNY 167/t at CNY 5,402/t.

Although rebar inventories maintained a steady decline this week under the pressure of rising production, the market is still disappointed by the pace of decline ahead of the approaching seasonal demanad recovery. HRC meanwhile ended two weeks of rising inventories thanks to lower production.

Overall rebar inventories were down 1.02% this week to 11.24 million tonnes, according to a count by SMM. Social rebar inventories fell 0.33% to 7.83mt, and mill inventories decreased 2.55% to 3.42mt. For HRC, meanwhile, overall inventories inched down by 1.61% to 3.98mt. Social inventory decreased 1.65% to 3.02mt, and mill inventory came to 958,500t, a drop of 1.49%.

In addition, Ningxia province began to to accelerate the pace of steel production reduction, including restrictions on the blast furnaces at Ningxia Steel, and a ban on the commissioning of new equipment in some ferroalloy plants (see separate article).

By Kallanish Team
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Duferco contracts SMS for San Zeno water treatment
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Italian sections producer Duferco Travi e Profilati has contracted SMS for a water treatment facility at its rolling mill in San Zeno Naviglio, Brescia, to be installed by end-2022, Kallanish learns from the technology supplier.

Duferco aims for its San Zeno mill to become the most important centre of steel beam production in Europe and intends to increase its environmental standard to become a green steelmaking plant, says president Antonio Gozzi.

“Three main circuits will be integrated in the medium section mill of the facility: indirect cooling, direct cooling and sludge treatment,” SMS explains. “The indirect cooling system will be used in the reheating furnace and the rolling mill, the direct cooling system in the reheating furnace, the roughing and tandem mill, the rinsing channel and at the cut-to-length saw.”

“The sludge treatment system will be available for all units; in case of a power failure, water supply will be ensured by emergency generators,” SMS says, adding that the system will improve product quality.

SMS will also supply a new medium section mill contracted by Duferco last year. Following commissioning, the San Zeno works will reach a yearly output of 1.5 million tonnes of long products. Last December Duferco and former American partner Nucor signed the financial closing that ended their partnership in the Italian joint venture (see Kallanish passim).

The plant currently has a 1m t/year production capacity.

Natalia Capra France
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Auto electrification sparks interest in AHSS, NGO steels
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Steel’s future in auto is bright, especially - and not despite - the ongoing electrification trend, market sources tell Kallanish.

A producer at one top-tier mill says the efforts put into developing advanced high-strength steels (AHSS) and ultra high-strength steels (UHSS) for lightweighting are equally applicable to battery-powered vehicles.

The original goal of lightweighting was to decrease emissions by increasing the average mile-per-gallon traveled without resorting to costly or environmentally unproven alternatives like aluminium or carbon fiber. While battery electric vehicles (BEVs) produce no emissions, steel is still the material of choice from a strength, weight, lifecycle, and supply chain perspective, he says.

“These BEV manufacturers have determined that they need to hit various cost/price points in these vehicles. They cannot make these fleets of BEVs in the coming decades all priced at $100,000 if they plan to sell them to you and me, so let’s say they target a $30,000 average cost,” he says. “ If they achieve lightweighting needs through steel versus other more costly materials and shave off $5,000 from the production cost below target, they can actually spend more money on the battery pack and other items to make the vehicle range more palatable to the public. A win-win-win in my mind.”

A Midwest buyer notes that steel’s attractive price point will keep it relevant through the electric revolution.

“Carbon fiber is too expensive, and they use aluminium now only where they can afford it,” he says, adding that it might still be too early to gauge the true impact - positive or negative - for electrification on steel.

At least one major steelmaker is putting cap-ex directly into the electrification trend. US Steel is in the midst of producing a new non-grain oriented electrical steel line, ultimately destined for electric motor production. Cleveland-Cliffs has also begun expansion into the non-grain oriented arena.

Dan Hilliard USA
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Russian anti-trust service opens probe into rebar manufacturers
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Russia's federal anti-monopoly service FAS has initiated an anti-cartel investigation on several Russian rebar producers, Kallanish learns from the service.

At the disposal of FAS there is data that may indicate signs of price collusion, the consequence of which may be the growth and maintenance of selling prices for valves, according to the agency's website.

Earlier, on the appeals of citizens and organizations about the growth of prices for metal, including rebar, it has carried out price monitoring, the results of which established that in Russia in 2021 compared to the previous year, prices for rebar increased significantly - more than 50%.

As one of the reasons for the increase in prices for rebar, metallurgical companies indicated an increase in price indicators in foreign markets. At the same time, the agency recorded a price increase in the domestic market during the decline in external indicators, FAS says.

“Thus, based on the results of the analysis of the information available to the department, circumstances have been established that may indicate the presence in the actions of the largest manufacturers of rebar of signs of conclusion and implementation of price collusion aimed at increasing and maintaining selling prices for this products,” the agency observes.

In this regard, FAS conducts unscheduled on-site inspections of NLMK, Novostal-M, Tulachermet-Steel LLC, IMH for the conclusion of an anti-competitive agreement. During the inspections, the agency will assess the pricing of the largest manufacturers of rebar, as well as study the reasons for the possible unjustified price increase.

If there is a violation of the prohibitions established by the actions of the inspected persons, a case of violation of antimonopoly legislation will be initiated, FAS noted.

In April, FAS has initiated an anti-trust investigation of three Russian major steel producers - Severstal, MMK and NLMK (see Kallanish passim). According to FAS, the companies established and maintained disproportionately high prices for hot rolled flat products.

NLMK and MMK, in their comments to Kallanish, say that they are all working in accordance with Russian competition law and are ready to provide all necessary documentation as a proof of their lawful actions.

Svetoslav Abrossimov Bulgaria
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Libya's Lisco reveals investment plan
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The Libyan Iron and Steel Company (Lisco), one of North Africa’s biggest steelmakers, plans to launch a tender next month worth $1 billion to build two new plants, according to Reuters.

The steelmaker has been hit by power cuts, shortages amid chaos since the toppling of Muammar Gaddafi in 2011. But thanks to its location in the western Libyan city of Misrata largely untouched by violence, Lisco managed to keep producing and even open a new bar mill last year with an annual capacity of 800,000 tonnes.

To feed the new mill, Lisco plans to attract foreign companies to build two plants to produce billets, with a tender worth $1 billion to be likely launched next month, Faqih said. The move would help cut costly imports.

“We are preparing the tender documents,” Faqih continued.

Lisco plans to increase production of liquid steel, its main base product, this year to more than 600,000t, up slightly from last year, he said.

Power and gas supply was better than last year but there were still disruptions, he said, explaining why Lisco was running below its 1.3 million tonne capacity.

Lisco started this year exporting rebars to Algeria, having sent 30,000t in five shipments and planning to export 10,000t a month.

“Now we are concentrating on Algeria. They have a lot of construction activities,” he concluded.

LISCO, headquartered in Misrata, has six electric arc furnaces, six preheating furnaces however the company suspended its operation since the beginning of July due to electricity shortages and the prime minister decreed redistribute electricity generated in the company's own 150 megawatt capacity power plant. The firm has recently re-opened the oxygen plant at its non-operational Tripoli subsidiary [they produce wire rod during the operational days] to supply oxygen for medical use (see Kallanish passim).

LISCO is expected to resume its operation in September, a company official confirms.

Burak Odabasi Turkey
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Volume gemiddeld 2.536.810
Volume gisteren 11.236.094

EU stocks, real time, by Cboe Europe Ltd.; Other, Euronext & US stocks by NYSE & Cboe BZX Exchange, 15 min. delayed
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