GMK Center

In October 2024, Ukrainian steel enterprises reduced rolled steel production by 12.2% compared to the previous month, to 442.2 thousand tons. Steel production for the month amounted to 603.8 thousand tons, which is 1% less than in September this year, and pig iron production amounted to 624.9 thousand tons (+0.1% m/m). Read more here🔽 https://lnkd.in/d7yVFnR6 #GMKCenter #Ukraine #steelmakers #steel #metals #mining #war #iron #ore #logistics #markets #pigiron

Despite the environmental benefits, economic feasibility and iron ore quality are the main obstacles to the widespread global adoption of DRI technology. Roberto Pancaldi, CEO of Tenova, a company specializing in innovative solutions for the steel and mining industries, told. As for the economic aspect, Tenova’s CEO explained that currently, 1.4 billion tons of steel are produced annually under the blast furnace-box converter (BF-BOF) scheme. “To replace these capacities, you will need 600-700 new DRI plants plus EAFs, which is a massive task,” he said. In addition, Roberto Pancaldi reminded, many existing blast furnaces, especially in China, are relatively new. Much of the steelmaking capacity was commissioned in the last 20 years. With a standard blast furnace lifespan of 40 years, it is too early to justify the economic feasibility of replacing them. Another major limitation, according to Tenova’s CEO, is the quality of iron ore. DRI-EAF technology requires high-quality raw materials with an iron content of 66-67%. DRI plants can operate regardless of ore quality. However, when lower-quality raw materials are used, a significant amount of slag is generated when the DRI is loaded into the electric furnace, which leads to a loss of EAF efficiency. “High-quality pellets are already in short supply, and with the current trends in DRI investment, we predict a shortage of these materials in the next five to ten years,” emphasized Roberto Pancaldi. As for EAF technology, which is positioned as one of the components of the emission reduction solution, two significant problems remain: the availability of scrap and its quality. According to Tenova’s CEO, firstly, there is simply not enough scrap to produce the 2 billion tons of steel that the market needs annually. Secondly, while steel can be recycled endlessly, some alloying elements, such as copper, also melt during the recycling process. “This makes it difficult to remove copper from molten steel. As a result, each time the steel is recycled, the percentage of copper increases, which can negatively affect the properties of more complex steels,” Roberto Pancaldi explained. Read more here🔽 #GMKCenter #Ukraine #steelmakers #steel #mining #metals #iron #ore #DRI #EAF #blastfurnaces #scrap #decarbonization #markets #CO2 #carbon #emissions

The European steel industry considers the current period to be the worst for it since the financial and economic crisis of 2009. European steelmakers continue to lobby for the sector’s interests at the EU level. On October 23, the issue of the crisis in the industry, which has been publicly raised in recent months, was discussed during a plenary debate in the European Parliament. How to save the steel industry – read here🔽 https://lnkd.in/gaYdAktK #GMKCenter #Ukraine #steelmakers #steel #EU #Europe #metals #industry #globalsteel #war #CBAM #energy #electricity #markets #trade #export #import #greensteel #investments #decarbonisation #CO2 #carbon #emissions

China’s steel exports in October 2024 increased by 10.1% compared to the previous month – to 11.18 million tons. Shipments increased by 40.8% compared to October 2023. During January-October this year, Chinese producers exported 91.89 million tons of steel (+23.3% y/y), which already exceeds the total exports of 2023 and is the highest since 2016. Thus, this year’s figure may exceed 110 million tons. Read more here🔽 https://lnkd.in/dHSDzm_k #GMKCenter #Ukraine #steelmakers #steel #metals #export #import #markets #China #mining #iron #ore #pigiron

Kazakhstan’s Qarmet (formerly ArcelorMittal Temirtau) and China’s Xinxing Ductile Iron Pipes Co. have agreed to build a plant to produce high-strength spheroidal graphite cast iron pipes with a capacity of 200 thousand tons per year in Kazakhstan. The deal is worth $161 million, and the company’s products will be used for projects to build and modernize housing and communal infrastructure in Kazakhstan. In addition, Qarmet signed an agreement with China Metallurgical Group Corporation on long-term cooperation in the mining and metallurgical industries worth $1 billion. The Kazakh company has also agreed to implement a $649 million project to modernize coke production and develop coal chemistry with China’s ACRE Coking & Refractory Engineering Consulting Corporation. In addition, the company signed an agreement with Nanjing Fiberglass Research & Design to build a $30 million plant for the production of mineral insulation from blast furnace slag in Temirtau. The plant will have an annual capacity of 100 thousand tons of finished products. The agreements were reached during the Kazakh-Chinese investment roundtable with business representatives held in Shanghai. As a result, a total of eight commercial agreements worth $2.5 billion were signed, with $1.9 billion related to Qarmet projects. Read more here🔽 #GMKCenter #Ukraine #steelmakers #steel #metals #mining #iron #ore #Kazakhstan #Qarmet #pipes #projects #China #investments

In the EU, average monthly wholesale day-ahead electricity prices in October 2024 showed a mixed trend. Electricity prices were: Italy – €116.72/MWh (-0.3% m/m); France – €65.25/MWh (+20.6%); Germany – €83.98/MWh (+6.9%); Spain – €68.49/MWh (-5.6%); Sweden – €15.49/MWh (+27%). In Ukraine, the weighted average price of electricity on the DAM amounted to €123.6/MWh. Read more here🔽 https://lnkd.in/gg3A69Bk #GMKCenter #Ukraine #EU #energy #energycrisis #Europe #electricity #prices #gas #markets

Ukraine was and remains a beneficial trade partner for the United States – our country imports many times more than it exports. In particular, last year Ukraine imported goods worth $2.8 bln, while it exported $500 mln. The United States is an important supplier of technologies, high value-added products, and energy resources. These supplies help Ukraine survive in the war and maintain the basic life infrastructure during this difficult time. Ukrainian exports to the USA is represented mainly by iron & steel products, in particular pig iron and pipes. Compared to pre-war 2021, Ukrainian exports of iron & steel products to the USA decreased by 83% last year. Such a significant drop is associated with the loss of steel capacities during the war – two enterprises (“Azovstal” and «Ilyich Iron and Steel Works») were destroyed. In general, the production of pig iron and steel in Ukraine fell more than 3 times compared to the pre-war period. Told Stanislav Zinchenko, GMK Center CEO🔽 https://lnkd.in/gKV9Pib7 #GMKCenter #Ukraine #steelmakers #steel #war #USA #export #import #markets #trade #metals #mining #iron #ore #pigiron #GDP #economy

The board of the Polish industrial group Boryszew SA has announced the decision of its steel subsidiary Alchemia SA to start the process of liquidating the Rurexpol branch in Czestochowa. Rurexpol is a producer of seamless pipes with diameters ranging from 121 mm to 273 mm, which are used, among other things, in the oil industry. The company also produces alloy pipes for the energy sector and structural pipes for further machining. Alchemia SA Holding notes that the decision was made due to the expected loss of Rurexpol’s ability to compete in the market amid the deteriorating situation in the European steel industry, which led to a decrease in demand for the company’s products. In addition, it points to the outdated production technology and high costs of maintaining production activities. It is also noted that the expected higher economic benefits from the liquidation of the branch’s assets compared to the benefits from maintaining production activities were taken into account. In 2023, Rurexpol generated PLN 143.5 million in sales revenue, and in 2022 – PLN 173 million, respectively. According to trade unions, nearly 260 people will lose their jobs by February 2025 due to the liquidation of the branch. Read more here🔽 #GMKCenter #Ukraine #steelmakers #steel #metals #EU #Europe #industry #pipes #Poland #markets

In October 2024, the global rebar market showed different price trends depending on the region. In Turkey, price growth took place amid higher scrap quotations and stable demand in the domestic market. At the same time, negative price dynamics were observed in the US due to weak demand caused by economic uncertainty. The European market was under pressure from growing competition from imported products, and in China, prices for rebar rose moderately against the background of cautious economic forecasts. Read more here🔽 https://lnkd.in/duuDg5fF #GMKCenter #Ukraine #steelmakers #steel #metals #rebar #prices #Turkiye #quotations #markets #export #China #USA

India’s JSW Steel and South Korea’s POSCO intend to jointly invest 650 billion rupees (about $7.73 billion) in the construction of a steel plant in the eastern Indian state of Odisha. The plant, with an initial capacity of 5 million tons of steel per year, will be part of their strategy in the growing steel market of India, a country with the fastest economic growth among the world’s major economies. The cooperation agreement between JSW Steel and POSCO was signed last week, although the parties did not disclose specific financial details of the deal. According to sources, the initial investment in the project will amount to 200 billion rupees, and the plant is planned to be commissioned next year. Within three years, the company’s production capacity should increase to 18 million tons per year, which will require a full investment of $7.73 billion. Demand for steel in India has grown significantly amid rapid economic development and infrastructure expansion, making the country a promising destination for the steel industry on the global stage, particularly as demand in Europe and the US declines. During the period from April to August this year, steel demand in India reached its highest level in seven years, driven in part by the growth in the construction of new plants and warehouses for large corporations seeking to diversify their production chains. According to the sources, the new plant will produce hot-rolled, cold-rolled and galvanized steel. This is not POSCO’s first attempt to build a large enterprise in India: a few years ago, the company planned to invest $12 billion in the largest foreign direct investment project in India at the time, but eventually abandoned the plan due to difficulties in acquiring land. Read more here🔽 #GMKCenter #Ukraine #steelmakers #steel #investments #project #Odisha #India #metals