GMK Center World

23/12/2024

🌐Global steel production in November 2024 fell by 2.9% compared to the previous month to 146.8 million tons.

The top three steel-producing countries in November 2024, according to World Steel Association:
🇨🇳China – 78.4 million tons;
🇮🇳India – 12.4 million tons;
🇯🇵Japan – 6.9 million tons.

🇺🇦In November 2024, Ukraine produced 540.8 thousands tons of steel, which is 1.2% less y./y.

18/12/2024

🇨🇳China’s steel exports are likely to surpass the 2015 record of 110 million tons in 2024, reaching over 111 million tons (+23% y/y). In January-November, shipments already amounted to 101.2 million tons, which is 12% higher than the total 90.3 million tons in 2023. The surge in Chinese steel exports occurred in 2023-2024, while in 2021-2022, volumes stabilized at 66-67 million tons.

The sharp increase in exports is due to a weakening domestic market, mainly because of economic difficulties and weakness in the construction sector. Despite numerous stimulus measures from the government, construction in China continues to decline, forcing steelmakers to sell surplus products to foreign markets at prices that are unattainable for competitors.

10/12/2024

✅Over the last six months, the amount of state grants for steel industry decarbonization projects in Europe has increased by €4 billion, reaching a total of €14.6 billion. A total of 15 subsidy decisions have been announced in European countries, with an average amount of assistance per project of around €1 billion.

How Europe supports decarbonization
of steel industry – told GMK Center⬇️
https://gmk.center/en/infographic/european-countries-granted-e14-6-bln-for-decarbonization-of-the-steel-sector/

09/12/2024

🇪🇺Sad news about the disastrous state of European steel industry appears in the media almost every day. European steelmakers reduce output and idle capacity (US Steel Kosice, Liberty Ostrava, Acciaierie d’Italia, ArcelorMittal Asturias, Arvedi AST), cut off workers (Thyssenkrupp Steel, Swiss Steel, Stahl Gerlafingen). Some companies delay wage payments (Liberty Dudelange, Liberty Dunaújváros). Also, some companies have been declared insolvent or are on the verge (Huta Czestochowa, Liberty Specialty Steel UK).

The dire state of both the steel sector and industrial production as a whole has sparked a wave of discussions about the need to strengthen support measures⬇️

European stakeholders call for revival of industrial policy

04/12/2024

🌐The transition phase of CBAM has been in effect since October 2023. Many countries have already responded to the introduction of this instrument, which changes the rules of international trade.

In general, three types of official reactions can be distinguished: opposition to the CBAM and attempts to prove its discriminatory nature, announcements of plans to introduce their own CBAMs, and adaptation of domestic carbon pricing to the CBAM application in the EU.

GMK Center told How different countries around the world reacted to CBAM introduction in the EU⬇️
https://gmk.center/en/infographic/how-different-countries-around-the-world-reacted-to-cbam-introduction-in-the-eu/

25/11/2024

🇵🇱Polish steel industry is going through difficult times: domestic production is decreasing, and demand is mostly met by imports. Polish plants are losing their competitiveness, in particular due to the high cost of electricity. More and more products from Asian countries are appearing on the market – distributors are looking for options to meet domestic demand at the most profitable offers.

Despite the problems of the steel-consuming industries, Poland remains a large enough market in which local producers are able to regain their position, and the upcoming launch of Hut Czestochowa could be the first step in this direction.

More details — in interview with Piotr Sikorski, the Head Manager at Polska Unia Dystrybutorow Stali (PUDS)⬇️

Polish steel industry is going through difficult times: domestic production is decreasing, and demand is mostly met by imports. Polish plants are losing their competitiveness, in particular due to the high cost of electricity. More and more products from Asian countries are appearing on the market ....

22/11/2024

🌐Global steel production in October 2024 increased by 0.4% compared to the same month in 2023 to 151.2 million tons.

The top three steel-producing countries in October 2024, according to World Steel Association:
🇨🇳China – 81.9 million tons;
🇮🇳India – 12.5 million tons;
🇯🇵Japan – 6.9 million tons.

🇺🇦In October 2024, Ukraine produced 603.8 thousands tons of steel, which is 0.1% more y./y.

18/11/2024

🏭Huta Częstochowa is a Polish plant with an electric arc furnace (0.7 million tons of crude steel per year) and plate mill (up to 1 million tons of plates). Its history includes different stages: first it developed as a traditional integrated steel plant (with blast furnaces and open-hearth furnaces), and then it turned into EAF plant (operational model that is currently popular given the “green” transition).

However, despite its relatively modern production facilities, the company has once again been declared bankrupt. A strange situation, considering the demand for plates in mechanical engineering, the military-industrial complex, and renewable energy.

We decided to take a closer look at what is happening to better understand how the plant got into its current situation and what will help find a way out⬇️

The plant is insolvent again and may change its owner

30/10/2024

💰January iron ore futures, which are the most traded on the Dalian Commodity Exchange during the period of October 18-25, increased by 1% compared to the previous week – to 769.5 yuan/t ($108.04/t).

On the Singapore Exchange, the quotes of the basic November futures decreased during this period – by 0.3%, to $101.05/t. At the same time, since the beginning of October, when there was a significant rise in the iron ore market, prices fell by 7.7% and 9.8%, respectively.

30/10/2024

🇪🇺EUROFER, the European steel association, expects apparent steel consumption in the EU to decline by 1.8% in 2024 compared to 2023, to 127 million tons. The previous forecast assumed a 1.4% y/y increase.

“In 2024, contrary to expectations of a more favorable industrial outlook and improved steel demand earlier this year, apparent steel consumption will decline again. At the same time, in 2025, given the positive dynamics of the industrial outlook and the easing of global tensions, the indicator will grow by 3.8% y/y,” the report said.

30/10/2024

✔️It is planned that the enterprise will begin operations in 2027.

It is planned that the enterprise will begin operations in 2027

30/10/2024

💵The base HRC price reached $740 per short ton.

The base HRC price reached $740 per short ton

24/10/2024

📢CBAM is a game changer for international trade. Introducing CBAM the EU gave new impetus to “green” agenda – countries and companies are reviewing their climate goals to continue trade relations with the EU. Unlike the Paris Agreement, which is more declarative in nature, CBAM is a real instrument which can facilitate preventing climate changes.

However, its design is not perfect, and we understand why – EU CBAM is a first kind of such instrument. European authorities said that CBAM would level the playing field for European producers and importers. But is it possible to reach this goal by increasing payments for imports? I am not sure.

Ukraine needs time to adapt to European regulation

24/10/2024

🇹🇷In September 2024, steel enterprises in Turkey increased steel production by 6.5% compared to the same period in 2023, to 3.09 million tons.

In January-September, steel production reached 27.91 million tons.

24/10/2024

📈In January-September 2024, Ukraine increased imports of flat products by 11.3% compared to the same period in 2023, to 735.79 thousand tons.

In September of this year, imports of flat products to Ukraine decreased to 71.5 thousand tons.

The largest suppliers were:
🇹🇷Türkiye,
🇵🇱Poland,
🇸🇰Slovakia,
🇮🇹Italy.

24/10/2024

☑️Currently, the company works according to the tolling scheme.

Currently, the company works according to the tolling scheme

23/10/2024

🇩🇪In September 2024, German steelmakers increased steel production by 3.9% compared to the previous month to 2.99 million tons.

In January-September, Germany increased steel production by 4% y/y – to 28.36 million tons.

23/10/2024

📈In January-September 2024, Ukrainian steel companies increased exports of flat products by 65.1% compared to the same period in 2023, to 1.297 million tons.

In September, exports of flat products from Ukraine increased to 178.82 thousand tons.

The main consumers were:
🇵🇱Poland,
🇧🇬Bulgaria,
🇷🇴Romania,
🇮🇹Italy.