Salzgitter declares force majeure on steel coil supply

Market: Metals
05/03/25

German steelmaker Salzgitter has declared force majeure on coil shipments after a fire disrupted its only hot-strip mill.

In a letter sent to customers on 4 March, the company said the fire broke out on 28 February for "reasons unknown to us", and production has been interrupted as a result. The company said its single hot-strip mill will "probably not be able to produce at full capacity until the fire damage has been completely repaired".

Salzgitter is making "great efforts and taking extensive precautions to ensure" supply, and asked customers to accept quantities quickly and smoothly.

The force majeure came as the coil market awaits the results of the European Commission's safeguard review, which is likely to curb import supply meaningfully. Argus' benchmark northwest EU HRC index rose to €621.50/t yesterday, up by over €100/t in the past six months, supported by probable import restrictions despite sluggish demand.

Mills have been in no rush to sell recently, as they expect prices to increase further once the results of the review are public. Market leader ArcelorMittal is currently targeting €680/t base, with an intention to move up to €700/t, sources suggested.

Salzgitter's share price rallied today, along with those of its peers, predominantly because of news that the German government will look to lift its debt brake and launch a €500bn infrastructure fund. The company's share price was up by over 13pc today, as of 10:37 GMT, at €22.98.

By Colin Richardson

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