Market Demand Slightly Improves; Construction Materials Social Inventory Shifts from Increase to Decline

Ukraine-based steel producer ArcelorMittal Kryvyi Rih said two people were killed and 13 employees and contractors were injured in a missile attack on its facility overnight, with the attack damaging the plant's main energy facilities and blast furnace production units. The plant was operational when the attack occurred, and production was partially halted as a result. Specialists are currently assessing the extent of the damage and the timeline for restoring operations. The company noted the plant was also hit by a missile attack in 2022, which destroyed a rolling mill workshop and killed one employee.

German steelmaker Thyssenkrupp is in advanced discussions to adjust the funding framework for its new direct reduction plant in Duisburg to reflect changed economic conditions and allow the facility to initially operate without hydrogen. Around two-thirds of the €3 billion in funding for the project is being provided by the German federal government and the state of North Rhine-Westphalia, with funding initially linked to the use of hydrogen in the direct reduction plant, a requirement Thyssenkrupp now considers unrealistic for the plant's initial operations. The company has been in talks with the German government and the European Commission to amend the funding conditions so support can continue even without an immediate hydrogen transition, with the EU said to have approved the planned amendment.

This week's HRC social inventory was 2.8361 million mt, up 34,700 mt from the previous week, up 1.24% WoW, up 31.27% YoY, and up 40.81% on a lunar YoY basis. This week's HRC mill inventory was 1.1166 million mt, up 18,100 mt from the previous week, up 1.65 WoW, up 11.97% YoY, and up 12.46% on a lunar YoY basis. This week's total HRC inventory was 3.9527 million mt, up 52,900 mt from the previous week, up 1.36% WoW, up 25.18% YoY, and up 31.45% on a lunar YoY basis.