The European environmentally friendly steel market remained calm during the week until Friday, April 17, with activity on the spot markets close to zero. But, as Fastmarkets reported, several large projects for the production of environmentally friendly steel have progressed.
Recent developments by Marcegaglia and Stegra indicate continued investments in electric arc furnace (EDP) technology and hydrogen-based steel production, while the industry works to reduce emissions and increase supply sustainability in challenging market conditions.
Progress in the implementation of projects for the production of environmentally friendly steel
Marcegaglia
The Italian company Marcegaglia has made progress in the implementation of a project for the production of electric furnaces. On April 14, the company signed a 450 million euro contract with Danieli, an equipment supplier, for the construction and supply of spare parts for a new EDP and flat rolled products plant in Fos-sur—Mer, France.
The total amount of capital investments in the project, dubbed Mistral, will amount to about 1 billion euros. It will include an EDP, a continuous injection molding unit producing thick slabs, and a conventional hot rolling mill.
Upon completion, the capacity of the new EDP will be more than 2 million tons of liquid steel per year and up to 3 million tons of hot-rolled stainless and carbon steel coils per year. This will cover approximately 35% of the Marcegaglia group's total needs for rolls and slabs, mainly for processing plants in Italy, the company said.
The company also emphasized the "eco-friendly" nature of the project. The use of scrap, low-carbon hot briquetting of iron (HBI), as well as nuclear and renewable energy will reduce greenhouse gas (GHG) emissions by 80% compared to traditional methods.
It is expected that the final investment decision on the project will be made no later than the end of 2026, after the completion of the permit process and the fulfillment of other conditions that are currently being negotiated with the relevant French institutions.
Marcegaglia is one of the largest buyers of HRC in Italy, with an estimated import volume of 4-5 million tons per year.
At the Ravenna, Italy plant, it operates in rolling mode and can produce about 2.4 million tons of cold-rolled roll per year and about 1.9 million tons of coated roll per year. The company also has a rolled sheet production facility in San Giorgio di Nogaro, as well as a pipe welding facility in northeastern Italy.
Stegra
On April 14, the Swedish producer of environmentally friendly steel, Stegra, agreed in principle on new financing
