A shift toward greener steel production is starting to happen globally, giving experts a glimmer of hope that one of the world’s dirtiest industries might eventually decarbonize.
Steel price rises and a search for new suppliers have already begun following the European Commission’s announcement of proposed changes to its import safeguard measures.
Consultation on plans to cap any country selling imports in the regulations’ “other countries” category to 15% of the EU’s quarterly hot rolled coil quota ended yesterday (June 10). The change is part of a proposal that would extend the current safeguard rules for a further two years – to June 30, 2026.
Further efforts are expected to actively upgrade technologies in steel smelting, optimizing production processes and promoting recycling for the low-carbon transformation of the energy-intensive steel industry to foster high-quality development, experts said.
Such moves will address challenges posed by the European Union's Carbon Border Adjustment Mechanism and pressure from downstream industries like automobiles that are urgently demanding eco-friendly steel materials, they said.
Revenues of $23.0 billion, a new all-time record
Net income of $1.4 billion
Adjusted EBITDA1 of $3.2 billion
Operating cash flow of $2.4 billion
Combined debt and net pension/OPEB liabilities reduced by over $3 billion
CLEVELAND--(BUSINESS WIRE)-- Cleveland-Cliffs Inc. (NYSE: CLF) today reported full-year and fourth-quarter results for the period ended December 31, 2022.
Full-Year Consolidated Results
Full-year 2022 consolidated revenues were $23.0 billion, compared to the prior year's consolidated revenues of $20.4 billion.
The steel industry in Germany cut its production by 8.4 percent last year compared with the previous year. Companies such as Thyssenkrupp and Salzgitter would thus still have produced 36.8 million tons of steel in 2022, the German Steel Federation announced on Monday. With the exception of the Corona year 2020, this is the lowest annual figure since 2009, it said.
The production volume of the second half of the year, at 17.3 million tons, would even represent a low point since German reunification.
Members of the flat-rolled steel supply chain could be excused if they’ve forgotten just what an ordinary year looks like, given the spectacular whipsawing that’s taken place over the past two years.
In the days since the pandemic, the steel world experienced a near total shutdown in production. That was followed by an unexpectedly rapid increase in demand, one the production community was not equipped to handle.
Since the beginning of the year EU has been decreasing steel production. In July 2022 EU steel plants produced 11.7 mln tons of crude steel. This is 6.7% lower than in the same month last year. In June 2022 steel production decreased by 12.2% y/y.
ugust 24 marks six months since the beginning of Russia’s unprovoked invasion in Ukraine on February 24. Here, Fastmarkets highlights the major changes the global steel market has faced as a result of the war.
Ukraine
The loss of control over two large mills based in Mariupol (Azovstal and Illych Steel, which belonged to major Ukrainian steelmaker Metinvest) as well as logistical and procurement problems resulted in a massive drop in Ukraine’s steel output.
Soft magnetic materials (SMMs) serve in electrical applications and sustainable energy supply, allowing magnetic flux variation in response to changes in applied magnetic field, at low energy loss1.
I usually start with steel prices and lead times. But I’d like to start with demand this time, because, Houston, we have a problem.
About 40% of people responding to the last survey from the Steel Market Update (SMU) reported decreasing demand. That’s the highest reading we’ve seen in our surveys since the outset of the pandemic in spring 2020.
