Fire Erupts at Salzgitter Plant: Hot Rolled Coil Production Grinds to a Halt

German flats producer Salzgitter recently announced a force majeure on hot rolled strip following a fire at its Lower Saxony site. A March 4 letter to steel industry customers indicated that a fire resulted in the suspension of production at the company’s hot strip mill. According to reports circulating in German media, a restart of rolling operations is unlikely until authorities determine the reasons for the fire, which occurred on February 28.

Local daily Braunschweiger Zeitung reported that six vehicles and a carport went up in flames and were completely engulfed by the time Salzgitter’s fire service received the alarm at about 7:00 PM local time. The report noted that estimated damages are €250,000 ($270,000), and authorities have yet to rule out arson as the primary cause of the fire. Stay ahead of price fluctuations in the steel industry from supply chain disruptions like this and save money using MetalMiner’s Weekly Newsletter.

Potential Steel Industry Impacts

Salzgitter’s main offices and flats production lie about 70 kilometers southwest of Hanover, which is the capital of Lower Saxony State. Offer prices for HRC in northern Europe are currently €650 ($705) per metric ton EXW, while offers in southern Europe are closer to €640 ($695).

In terms of output, subsidiary company Salzgitter Flachstahl can produce 3.5 million metric tons per annum of hot rolled coil 1.5-25mm gauges in 800-2,100mm widths. Meanwhile, applications for the site’s HRC include feedstock for cold rolled coil pipe production as well as for structural steels and pressure vessels.

Further downstream, the plant can produce up to 2 million metric tons of cold rolled coil in 0.3-3mm gauges and 1.2 million metric tons of hot dipped galvanized sheet. Other downstream products at the site include electrogalvanized and coated products. End users of Saltzgitter Flachstahl’s products include the automotive, white goods and construction sectors.

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