ITALIAN STEEL MARKET ROUNDUP FROM MEPS

Italian steel prices for flat products started to fall, this month, partly due to the traditional pre-August slowdown in activity. Cheaper imports also contributed to the downward pressure.

In July’s edition of the European Steel Review, MEPS reports that Italian hot rolled coil suppliers offered discounts during recent negotiations. Distributors registered slightly lower sales volumes, during the month.

A seasonal market slowdown led to price reductions for hot rolled plate. Although the threat of antidumping action curtailed new import business, material ordered earlier continues to arrive at the ports. Much cheaper slab resulted in heavy discounting by the re-rollers.

In the long products segment, a combination of cheap imports and falling scrap costs, negatively affected Italian beam prices. Earlier increases were not supported by demand.

Italian rebar basis values decreased as a result of low demand and scrap price weakness. The market is unlikely to record a significant revival, before the holidays.

After granting a discount in June, merchant bar suppliers stabilised prices during the latest round of settlements in Italy, despite lower input costs. Trading conditions remain quiet.

Source: MEPS – European Steel Review – July 2016 Issue

SMS group modernizes thermal process technology at ArcelorMittal’s continuous annealing line

SMS group upgrades the furnace of the continuous annealing line at ArcelorMittal in Kessales near Liège, Belgium. Goal of the modernization is the production of 3rd generation AHSS steel grades for the automotive industry. The thermal process will be extended by one flexible zone to achieve that, which for example allows applying the quench and partitioning process. A slow cooling section will be installed, which can be used alternatively as soaking zone. The new section will be installed between heating zone and fast cooling section replacing the original electrical soaking section zone. This new revamp order was awarded to Drever International, Belgium, a company of SMS group. The scope of supply consists of design, manufacturing, assembly, erection and commissioning of the new zone. Modernization measures are scheduled to be completed in September 2016.

The new flexible slow cooling section and soaking zone consists of seven vertical strands with a total length of 140 meters. In this zone the material can either be soaked at 900 °C or it can be cooled down to 650 °C. Slow cooling is conducted with a maximum of five Kelvin per second, which is achieved by cooling tubes with inclined HNx jets.

The cold strip is treated with a maximal speed of 230 meters per minute in the furnace, where it receives its final material properties. The furnace is able to treat up to 76.5 tons of steel per hour. The processed strip widths range between 600 and 1,650 millimeters and the strip thicknesses between 0.3 and 2.8 millimeters.

The SMS group is a group of companies internationally active in plant construction and mechanical engineering for the steel and nonferrous metals industry. Its 14,000 employees generate sales of over EUR 3.3 bn.

Source: SMS Group

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PAUL WURTH TO MODERNISE COKING PLANT FACILITIES OF ARCELORMITTAL ASTURIAS

In order to ensure the steelmaking future of the Asturias province in Spain, ArcelorMittal decided to invest into the reconstruction and modernisation of the coking plant at its Gijon works, which has been out of operation since 2013.

In the context of this extensive project, Paul Wurth has been awarded with the engineering, supply of key equipment as well as erection and commissioning supervision services for the rebuild of two coke oven batteries and the modernisation of the adjacent by-product plants.

In particular, for the coke oven batteries, featuring 45 ovens each and designed to produce 1.1 million tons of coke per year, Paul Wurth will supply the refractory material and assume the battery heating-up services.

For the by-product plants, including coke oven gas desulphurisation, Paul Wurth will be in charge of the overall engineering and supply of key equipment. Moreover, Paul Wurth has been awarded with the turnkey installation of a Claus plant for sulfur removal and a strong water plant.

By integrating Best Available Techniques (BAT) the customer will ensure compliance with the strictest environmental requirements. With the restart its cokemaking plant scheduled for end 2019, ArcelorMittal Asturias will be able to produce on one and the same site the coke needed for the operation of its two local blast furnaces.

Source: Paul Wurth
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Ton Dong A confirms its trust in Danieli by signing the third order in 4 years

Danieli will supply a new HDGL n°6 for the production of GL coated strip and thin low-carbon strip, for the new facility in Binh Dong, Vietnam.

After the recent orders for the new Cold Reversing Mill no.2; the new Galvanizing Line no.5 in December 2015 and the previous one for the Cold Reversing Mill no.1 in 2012 , Ton Dong A decided to offer Danieli this new opportunity, confident in the company’s reliability, quality and service.

The new Hot Dip Galvanizing Line will have a total annual production capacity of 0.35 Mtpy, with maximum process speeds going from 180 mpm for the GI products up to 200 mpm for the GL. The incoming strip, cold-rolled or pickled and oiled hot-rolled coils, will be in the thickness range from 0.25 to 2.5 mm, up to 1,250 mm in width.

This line incorporates the knowledge and experience of several Danieli divisions: Danieli Wean United for the mechanical part, Danieli Centro Combustion for the annealing furnace, Danieli Kohler for the Air Wiping System and Danieli Automation as software and process integrator.

The line will be designed for a possible future upgrade to enable the production of home appliances.
The project teams of Ton Dong A and Danieli aim to produce the first galvanized coil by the end of November 2017.

With this supply Danieli has once again proven to be a worldwide leader in advanced cold rolling equipment and processing lines.

Source: Danieli Group

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VALLOUREC & SUMITOMO TUBOS DO BRASIL (VSB) issues FAC to SMS group for new PQF® roll redressing machine

VALLOUREC & SUMITOMO TUBOS DO BRASIL (VSB), based in Jeceaba, Brazil, granted SMS group the Final Acceptance Certificate (FAC) for the new PQF® roll redressing machine which is used in the 16 inches PQF® seamless tube plant.

The Franco-Japanese joint venture has set up a highly productive plant with an annual capacity of 600,000 tons in the Brazilian province of Minas Gerais. The continuous caster and the ladle furnace came from SMS Concast – the PQF® seamless tube mill from SMS group. They enable VSB to produce high-quality oilfield tubulars suitable for operation at great sea depths.

The new roll redressing machine taken into service is designed for roll profile redressing of the three rolls of the PQF® mill stands, leaving the three rolls themselves assembled in the stand which is now mounted in the machine housing containing the three roll drives and the three roll adjusting and locking devices.

This practice has the aim to avoid dismantling the stand with its three rolls and also the succeeding reassembly as is still common today on a standard CNC lathe.

With the PQF® roll dressing machine from SMS the rolls of the PQF® stands can be remachined quickly and precisely. This helps plant owners to reduce stand machining costs and operating spare parts inventory over the long term. Furthermore, it allows easier management of the rolling mill with its stands and results in time and cost savings for maintenance operations.

The SMS group is a group of companies internationally active in plant construction and mechanical engineering for the steel and nonferrous metals industry. Its 14,000 employees generate sales of over EUR 3.3 bn.

Source: SMS Group

Worldsteelnews.com is not responsible for the content of third party sites.

EU STEEL PRICES SOFTEN AFTER SPRING RECOVERY

Overall European strip mill product demand slowed, in July, according to MEPS International Ltd. Many customers had sufficient stock to see them through the summer. With delivery lead times now into the fourth quarter, buyers hesitated to place new business. More attractive third country import offers, especially in southern Europe, plus the likelihood of improved availability from domestic mills in the autumn, led purchasers to anticipate the possibility of some discounts, later in the year. However, prices should be supported by new and existing trade defence measures. For now, some minor downward corrections were noted.

The German economy is performing well. The auto sector remains healthy and construction activity is reasonable. Service centre stocks are now mid-range, following some reductions. MEPS detects no problems regarding availability from distributors. Strip mill product basis figures weakened marginally, in July. Buyers report more interesting offers from Asia.

Activity remained subdued, in France, in early July. Market participants expected a noticeable slowdown in the second half of the month. End-users were loath to build up stocks ahead of the long summer holidays, due to uncertainty over future price trends. Basis values stopped rising, in July, amidst rumours of lower domestic prices in southern Europe and more attractive import offers. Nevertheless, buyers report delivery delays from local mills, with limited availability of material.

Italian basis figures began to erode, in July, partly due to the traditional pre-August slowdown in activity. Cheaper imports, from China, South Korea and India, also contributed to the downward pressure. Real consumption, except by the carmakers, is fragile. Moreover, uncertainty over the future development of prices caused buyers to postpone purchasing decisions.

Short-term fallout from the UK referendum vote created a more healthy environment for exports of both steel and finished goods, as the currency weakened. Moreover, the UK is, presently, less attractive to importers. However, currency movements pushed up raw material costs for the steelmakers. Most flat product prices were unchanged, in July, but continental producers are investigating the possibility of lifting basis values to offset the weaker pound. Shortages of standard sizes were reported by several distributors.

Few price changes were noted in the Belgian market, during the past four weeks. Demand is reasonable. Buyers expect quantities of Chinese and Russian material, ordered earlier in the year, to arrive at the ports in September. This could put domestic mill values under pressure. Customers anticipate small discounts once fourth quarter negotiations get underway. At the moment, service centre stocks are fair, partly because of delayed deliveries.

Import pressure and reducing apparent demand led to downward price corrections in the Spanish market, when discussions for October deliveries were finalised. Service centres, having rebuilt their stocks, do not need to order substantial quantities, immediately. In addition, buyers renewed their interest in third country imports, which, recently, became cheaper than the high domestic values reached in May/June. Low-cost imports are already starting to arrive.

Source: MEPS – European Steel Review – July 2016 Issue