In 2020, two leading European steelmakers commissioned a study to Austrian consulting company Horst Wiesinger Consulting (HWC) to analyze the process of transition from basic oxygen furnace route to electric-arc furnace route, according to a post on HWC’s official LinkedIn page.
European steelmakers seek this technological transformation to achieve the set climate goals. In the first half of December, the EU Member States agreed to cut greenhouse gas emissions in their territory by 55% by 2030 in the framework of the European Green Deal. The initial climate goal was a 40% reduction of emissions.
In general, HWC implemented the following projects in 2018–2020:
- technical plant assessment — 4 projects;
- layout study — 4 projects;
- logistics study — 2 projects;
- technical study & process design calculations — 6 projects;
- due diligence and business & strategy plans — 3 projects;
- bankable feasibility study — 2 projects;
- market study — 3 projects;
- project management services — 4 projects.
As reported earlier, in July 2020, Horst Wiesinger, CEO of HWC, was elected the Chairman of GMK Center Supervisory Board.
In one of his earlier interviews for GMK Center, Mr Wiesinger shared his vision of the future of the European and Ukrainian steel industries.
The Department for Internal Market Defence of the Eurasian Economic Commission (EEC) initiated a repeated anti-dumping investigation concerning seamless pipes of stainless steel originating from Ukraine, according to Interfax-Ukraine.
The reason of the repeated investigation is the expiry of the anti-dumping duty.
The repeated investigation was requested by the ChTPZ Group (Chelyabinsk Tube Rolling Plant and Pervouralsk New Pipe Plant) and the TMK Group (TMK-Inkos and Volga Pipe Plant).
The companies claimed that Ukraine had decreased the USD price for its seamless pipes of stainless steel by 27.8% in H1, which resulted in a drop in the cost of metal products, excluding the anti-dumping duty, to a level below the average market benchmark in the EAEU.
The investigation conducted in 2015–2016 ended with the EEC imposing an anti-dumping duty of 4.32% to 18.96% of the customs value depending on the producing company. The decision on the introduction of safeguard measures entered into force on 26 February 2016. The expiry date for the duty was 26 February 2021 at that time.
The duty for Centravis Production Ukraine (Centravis) and Interpipe Niko Tube amounted to 4.32% of the customs value of metal products.
The largest Ukrainian manufacturer of seamless pipes of stainless steel is Centravis. The Company produces more than 1,000 pipe sizes of more than 100 types of corrosion-resistant and heat-resistant steel grades.
In January–August, Centravis decreased pipe production by 10.9% to 12.3 thousand tons compared to the previous year.
According to the forecast of SteelHome, a Chinese consulting company, the next decade will see nine companies controlling 75% of domestic steel production in the Chinese market.
This was reported by Wu Wenzhang, Chairman and President of Shanghai SteelHome, during his presentation at the Steel Success Strategy 2020 international conference organized by World Steel Dynamics and Fastmarkets reporting agency.
Wu Wenzhang underscored that the supply side reform will result in deeper consolidation of the industry, which will become the key driver for the Chinese steelmaking.
The consolidation level is rather low at the moment. In the first eight months of 2020, the share of the ten largest steelmakers in the country in the total domestic steel output made up only 36.4%. In 2011, this indicator was 49.05%.
In 2016, the Chinese government committed to increase the share of the ten largest manufacturers in the total volume of domestic steel production to 60% by 2025.
China’s largest player in the steel market is Baowu. According to SteelHome, in January–August 2020, Baowu’s production volumes reached 95.8 million tons, a little up from the same period a year earlier (95.5 million tons).
China is the largest steel producer in the world. In 2019, Chinese steelmakers increased steel production by 8.3% to 996.34 million tons against 2018.