German steel company Thyssenkrupp has reduced steel production at its Duisburg plant after low water levels in the Rhine River disrupted the supply of raw materials, a McCloskey company representative confirmed on July 15.
The scale of the cuts has not been disclosed, although, according to both the steel manufacturer and German buyers, disruptions in the supply of steel products have not affected.
"The ongoing and deteriorating low water situation on the Rhine is currently affecting the supply of raw materials to Thyssenkrupp Steel's Duisburg plant," a company spokesman said. "The current developments are leading to restrictions in the supply of raw materials. Therefore, we have already adjusted the production of cast iron accordingly. There is currently no threat to consumer supplies."
The steel mill has decommissioned its own fleet of pusher barges and switched to externally chartered vessels that can continue to operate due to lower draft at current water levels.
Market sources reported that the low water level creates logistical difficulties, as not all vessels can operate, and those that remain in service cannot always operate at full capacity. The supply of raw materials is more susceptible to disruptions in river transport, while most of the finished steel products are transported by road or rail.
Although steel supplies were not affected, the disruptions further reinforced the optimistic mood in the European flat-rolled market.
Domestic hot-rolled roll (HRC) prices in Northwest Europe have already increased by about 20 euros per ton over the past week due to the introduction of the new EU import quota system, which has significantly reduced access to foreign materials.
According to McCloskey, domestic prices for HRC in Northwestern Europe as of July 10 amounted to 710 euros per ton from the plant.
"This is a typical position of factories in support of price increases, as well as the problems with railway companies that were reported in June. There is some truth in these stories," said the German distributor.
In June, German steelmakers reported severe disruptions in the supply of raw materials caused by constant rail congestion and strict loading restrictions on the Rhine.
Author: Benjamin Stephen
Opisnet.com
