NORTH AMERICAN STRIP MILL PRODUCT STEEL PRICES POISED TO RISE – MEPS

The downward trajectory of US strip mill product steel prices came to an end, in November. MEPS’ research shows that local steelmakers achieved at least part of their proposed increases or, at worst, prevented domestic values slipping further.

Amid a weak trading environment, a number of US steel buyers initially labelled the mills’ proposed price hikes as a ‘defensive move’ to halt the downward pressure on steel transaction values. Surging raw material expenditure supported mill efforts. Supply from offshore sources is extremely limited, largely due to ongoing trade defence measures.

Many buyers remarked, previously, that uncertainty surrounding the US presidential election had created a negative impact on domestic steel demand. A number of significant public construction projects were put on hold.

From MEPS research, in November, the general consensus view from steel market participants is that Donald Trump’s Republican election victory will have positive implications for the US steel industry. The new president’s ‘America First’ policy will likely feature increased infrastructure spending, which will boost steel demand from the construction sector, in particular. The expected greater use of import protection measures will also safeguard the interests of US steelmakers against the dumping of cheap imports.

However, further trade barriers will restrict choice for the US consumer. By limiting offshore supply options, steel buyers are likely to struggle to purchase their material at competitive prices. Furthermore, a major aspect of the electoral campaign was a promise to renegotiate several trade deals. If the US goes against the ethos of free trade, both regionally and globally, then steel exporters, who focus heavily on the world market, will be particularly affected.

MEPS believes that US transaction values are likely to strengthen, in the near term. Supply-side cuts and a slight demand pickup could prompt price increases at the beginning of 2017.

Source: MEPS International Steel Review – November 2016 Issue

NUCOR-JFE STEEL MEXICO orders a hot-dip galvanizing line and recoiling line from SMS group

SMS group was awarded the order to supply a continuous hot-dip galvanizing line and a recoiling line for a new plant in Mexico by NUCOR-JFE STEEL MEXICO. The hot-dip galvanizing line will produce 400,000 tons of steel strips per year, most notably deep-drawing grades and high-strength steels for the automotive industry, including modern dual-phase steels. Further­more, the line is designed to process not only cold strip but also hot strip material. Startup is anticipated for the second half of 2019.NUCOR-JFE STEEL MEXICO is a 50-50 joint venture of Nucor Corporation, USA, and JFE Steel Corporation, Japan, which will build and operate the plant in central Mexico to supply that region’s automotive market. Besides the design and production of the mechanical equipment, the complete electrical and automation package also is within the supply scope of SMS group.

The hot-dip galvanizing line is designed for strips with a thickness of 0.4 to 2.6 millimeters and widths ranging from 800 to 1,880 millimeters. In the process section the strip will be coated with zinc at a process speed of up to 180 meters per minute, whereas in the entry and exit sections speeds of up to 280 meters per minute can be reached. The strip steel grades manufactured are mild steel, deep-drawing grades and high tensile strength steel. The surfaces of the strips will either be galvanized or galvannealed.

One highlight is the advanced furnace technology from Drever International which allows an economical production of high-strength material. The highly efficient combustion system features recuperative burners. Furthermore, the furnace consists of a powerful rapid gas jet cooling system, which offers upgrade possibilities. All furnace parameters and coil sequencing are controlled automatically by a mathematical/physical furnace model.

The cleaning section consists of efficient vertical electrolytic cleaning and rinsing cells and horizontal brushing machines. The skin pass mill ensures an optimized surface roughness and slight linear expansion. A vertical roll coater system with drying and cooling devices from Drever will be used for the chemical treatment of the coated surfaces.

In total, the new hot-dip galvanizing line consists of the following essential components: entry section with two uncoilers, welding machine, entry strip accumulator, cleaning section, radiant tube furnace, galvanizing section with zinc pot, intermediate accumulator, skin pass mill, vertical roll coater system, exit accumulator, side trimmer, inspection section, oiling machine, flying shear and two coilers.

The supply scope also includes a recoiling and inspection line. This line features pay-off reel, welding machine, side trimmer, inspection station, oiling machine, cut-to-length shear and upcoiler. It is also designed for strips with a thickness of 0.4 to 2.6 millimeters and widths ranging from 800 to 1,880 millimeters. The maximum line speed is 300 meters per Minute.

Source: SMS Group

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

World´s largest HBI plant from Primetals Technologies and Midrex begins operation at voestalpine in Texas

  • Plant will produce two million metric tons of hot briquetted iron (HBI) per year
  • Order volume was in the three-digit million euro range

On October 26, the direct reduction HBI plant built by Primetals Technologies and consortium partner Midrex Technologies, Inc. was officially started-up in the presence of the voestalpine board after an effective construction phase of about two years. The Midrex direct reduction plant, located near the city of Corpus Christi, Texas, USA on the Gulf of Mexico. It is designed to produce two million metric tons of hot briquetted iron (HBI) per year, making it the largest single module of this type world-wide. The three-digit million euro range order was awarded to Primetals Technologies and Midrex Technologies Inc. in July 2013.

The consortium of Primetals Technologies and Midrex were responsible for engineering, supply of mechanical and electrical equipment and advisory services for the direct reduction plant. At the site near Corpus Christi in San Patricio County, voestalpine invested a three-digit million euro amount. This also included comprehensive infrastructure improvements for the project location, particularly the necessary port facilities.

The Midrex facility will produce high-quality HBI from iron ore pellets, which is comparable to the highest quality scrap or pig iron. Being charged to electric arc furnaces, converters or blast furnaces, HBI allows for the production of highest-quality steel grades. In contrast to the coal-based blast furnaces route, direct reduction only uses natural gas as the reducing agent, which is much more environmentally-friendly. This improves the carbon footprint of the voestalpine Group and is an important step in the achievement of the Group’s energy efficiency and climate protection objectives.

Source: Primentals Technologies

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

INCREASED RAW MATERIAL COSTS PUSHING STEEL PRICES UPWARDS

According to MEPS (International) Ltd, the recent spike in coking coal costs gave support to the European steelmakers’ determined attempts to hike strip mill product prices, in November. Mill order books are relatively healthy and delivery lead times remain extended, although buyers seem less worried about availability, now. The proposed rises continue to be accepted, at least in part, but service centres are concerned because their customers are progressively more reluctant to accept higher prices. Trade defence measures, on both hot and cold rolled coil, together with higher prices demanded by many overseas suppliers, continue to restrict import volumes.

German manufacturing output is good, leading to solid steel demand. However, buyers complain that the improvement is not sufficient to justify current mill price hike proposals. German service centres are not fully recouping the steelmakers’ increases. Nevertheless, strip mill product basis values continue to advance as a result of restricted supply and extended delivery lead times. Buyers expect that steel will become more expensive as mill costs surge but are not convinced that producers will achieve their target figures.

Even though there is little change in French activity levels, prices continue to strengthen. Producers are looking to implement further increases. The auto industry is boosting demand, whilst the lack of imports limits supply. Mill delivery lead times stretch to the end of January. Buyers report that availability is constrained.

Activity in the Italian market is sluggish, with the exception of the vehicle manufacturing sector, which is running well. However, tight supply, resulting from a dearth of imported material, together with delayed deliveries from European mills, continues to force basis values up. Service centres cannot pass on the full amount of the hikes to end-users, which is limiting their profitability.

Significant upward price movements were noted in the UK, for February shipments. Buyers expect similar increases when March negotiations are concluded. Delivery lead times are long and there is a lack of competition from third country sources. Moreover, the pound sterling is weak. Distributors report good sales activity in October, with November starting well. The majority of service centres state that they continue to apply the mill increases to resale values. Stock levels remain low due to supply shortfalls.

Belgian demand is brisk. Domestic steelmakers have full order books, with very little competition from overseas suppliers. Prices continue on an upward trend. European producers appear confident that further increases can be secured. Deliveries are already into January/February 2017.

Spanish manufacturing output continued to grow, in October. Steel demand is relatively stable with great expectations for public investment now that a new government has, finally, been established. Service centre sales volumes are at an acceptable level but difficulties occur when distributors try to translate mill increases into the marketplace. Inventory levels are normal-to-low. Ongoing constrained supply led to higher basis numbers, in November. European producers wish to implement further increases. Competitively-priced products, from third country sources not affected by the current antidumping measures, have been purchased, for arrival February 2017. New offers from overseas are more expensive.

Source: MEPS – European Steel Review – November 2016 Issue

Bangkok Iron and Steel Works provides FAC for new meltshop to SMS group

Together with SMS group, Bangkok Iron and Steel Works (BISW), Thailand, successfully commissioned a new meltshop for the production of high-quality steel grades. Within the city of Bangkok, SMS group supplied a 60-tons ladle furnace, a 60-tons vacuum degasser, a 3(4)-strand continuous billet caster for billets 150 millimeters and 130 millimeters square as well as a fume treatment plant. The new steelworks with the equipment from SMS group assure BISW the production of high-quality steel, attaining roughly 400,000 tons per year.“With SMS group technology we are now able to produce exactly the products our customers need, whilst staying at a competitive cost level and in line with the latest environmental directives,” says Dr. Nantawatchai, General Manager at BISW.

The new equipment allows BISW to cover the steel production ranging from low to high carbon grades and helps BISW to penetrate the domain of special steels and offer products for particular applications in the automotive and mechanical engineering industries.

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.