Steel recovery strengthens, geopolitical uncertainty clouds outlook: worldsteel

There has been strengthening recovery in the global steel sector but geopolitical uncertainty is clouding the outlook, according to the World Steel Association (worldsteel). The organisation revealed this conclusion in its April 2017 Short Range Outlook, presented at a meeting in London attended by kallanish.

“In 2016, steel demand recovery was stronger than expected with the upside mostly coming from China. We believe in 2017 and 2018 we will see a cyclical upturn in steel demand with a continuing recovery in the developed economies and an accelerating growth momentum in the emerging and developing economies,” says chairman of the worldsteel economics committee, T. V. Narendran.

The global economy is gaining strength, worldsteel says, but geopolitical uncertainty is escalating due to factors such as Brexit, US policy uncertainties and several other issues. This said, the mood amongst its members remains generally optimistic, says worldsteel director general Edwin Basson.

With global demand for finished steel products at 1,505 million tonnes in 2016, worldsteel forecasts a 1.0% increase in 2017 and a 1.3% upturn in 2018 to 1,535.2mt and 1,548.5mt respectively. It sees Chinese demand as being flat this year and actually reducing by -2.0% in 2018. This is due to the gradual weakening of the effect of recent economic stimulus by the Chinese government, Basson adds.

Elsewhere, the outlook is generally positive, albeit modestly so. Regionally the most optimistic forecasts are those for the emerging and developing economies (excluding China) and for Central and South America. These are seen for 2017 and 2018 growing by 4.0% and 4.9% for the emerging economies and by 3.5% and 4.7% for LatAm, although the latter region is growing from a low base, Basson says.

Country-wise, the projections for India lead the field in terms of percentage demand growth. The south Asian nation’s demand for finished steel products is seen growing by 6.1% in 2017 and 7.1% in 2018, by far the biggest such increases amongst the top 10 steel-using countries in 2016.

 

Regional steel demand forecasts – SRO April 2017, finished steel products
Region 2016 2017 (f) 2018(f) 2016 2017(f) 2018(f)
  < million tonnes > < Y-o-y growth rates % >
European Union (28)    157.4    158.2    160.4    2.3 0.5  1.4
Other Europe      40.7      41.7      43.2    0.6 2.6  3.5
CIS      48.7      50.2      51.9   -4.1 3.2  3.4
NAFTA    132.2    135.2    138.5   -1.5 2.2  2.4
Central and South America      39.4      40.8      42.7 -13.6 3.5  4.5
Africa      37.9      38.4      40.0   -2.1 1.5  4.1
Middle East      53.1      54.8      56.8   -1.3 3.1  3.7
Asia and Oceania 1,005.6 1,016.0 1,015.0    2.3 1.0 -0.1
World 1,515.0 1,535.2 1,548.5    1.0 1.3  0.9

Source: worldsteel

EUROMETAL Summit is now less than 3 weeks away

The conference program of the Summit will give a unique range of presentations covering all main aspects of steel supply chains:

  • The macro-economic outlook
  • The dynamics powering steel markets
  • The general context of global steel,including international steel trade flows, steel trade cases and their impact on day-to-day business of steel distributors, SSC and traders
  • The insights of steel end use segments, but also the insights of the supplier side regarding the balance between steel demand and steel offer, with speakers from one of the key players of automotive supplies, but also speakers from a top tube producer, from the newly created UK longs specialist and from a key German player in strip mill products supplies
  • Discussing steel stockholding and SSC business models will be one of the highlights of the conference with speakers from the continental arm of Tata Steel SSC, from the top player ARCELORMITTAL Distribution Services, from worldwide operating SSC group GONVARRI, from regional Nordic player TIBNOR, from global supplier to energy and infrastructure supply chains EDGEN MURRAY and from the US based plate specialist LEECO STEEL.
  • The Summit will end with the session dedicated to challenges and chances for steel distributors and SSC, with focus on Health & Safety issues, on smart trade finance models and on the chances and challenges which Digitization and the Internet Of Things might represent for steel business.

In this link you may find complete information about the Summit, the conference program, the Summit venue as well as a registration form to this outstanding networking event.

Hoping to meet you soon in Düsseldorf.

With best regards,
Georges Kirps

WORLD STEEL DISTRIBUTION & SSC SUMMIT 2017 – CONFERENCE PROGRAM

EUROMETAL Regional Meeting Nordics in Copenhagen on 08 June 2017

EUROMETAL, in close cooperation with the steel distribution associations of Denmark, Finland, Norway and Sweden, is proud to announce its next EUROMETAL Regional Meeting Nordics, to be convened in Copenhagen, Tivoli Hotel & Conference Center on 08 June 2017.

On 07 June 2017, in the evening at 19.30 Hrs, EUROMETAL will invite all participants to a Meet and Greet Reception at TIVOLI BRASSERIE in the conference hotel.

In the attachments we are pleased to submit to you your invitation letter as well as a first draft of the scheduled conference program.

You are kindly invited to register to this conference by completing the registration form included in the invitation letter and returning it to office@eurometal.net before 1.June 2017.

Hoping to meet you all in Copenhagen for an outstanding networking event of the Nordic steel community.

[ REGISTRATION ] [ AGENDA ]

Delegates can book their rooms by email: tivolihotel@arp-hansen.dk refering to EUROMETAL code 1567662 for room reservation.

With best regards,

Mikael Nyquist, EUROMETAL Vice-president and Chairman of EUROMETAL Work Group Nordics
Georges Kirps, Director General EUROMETAL

 

EC confirms and increases duties on Chinese HRC

The European Commission has confirmed this week the imposition of definitive duties on HRC imported from China. The duties imposed are slightly higher than the provisional measures announced in October last year.

Concluding the investigation started in February 2016, the EC imposed definitive duties of between 18.1% and 35.9% on Chinese HRC. Material originating from the Hegang group mills is set to be the less-penalised, Kallanish understands.

In its document confirming the duties, the EC noted that volumes of Chinese dumped material in Europe began to decrease after the investigations had started. The January-July average monthly import volume for China was well above 128,000 tonnes/month. The level then decreased to just below 100,000 t/month in the second half of 2016.

As reported, definitive plate import duties for Chinese material were also confirmed at the end of February this year.

The confirmation of definitive import duties for Chinese HRC comes after the EC informed last week that provisional duties on imports of HRC from Russia, Brazil, Iran, Ukraine and Serbia would not be imposed.

In a comment on the announcement sent to Kallanish, Gareth Stace, director of trade organisation UK Steel, said, “This is a welcome decision by the Commission given the continued efforts by China to undermine European steelmakers by dumping cheap steel on to the market. So long as China avoids taking steps to tackle its own issues with overcapacity and, fails to adhere to the principle of free trade which is the lifeblood of the steel sector then such duties are going to be necessary to ensure we don’t pay the price here in the UK and across Europe.”

EC imposes final anti-dumping duty on Chinese HRC

The European Commission has imposed definitive anti-dumping duties on hot-rolled coils of Chinese origin, ranging from 18.1% to 35.9%, the EC said in a report published Thursday.

Jiangsu Shagang Group received a 35.9% duty rate, whereas Bengang Steel Plates is now subject to a 28.1 rate and Hesteel Group 18.1%. All other cooperating companies received a 27.3% rate, and other Chinese companies received 35.9%.

While Chinese imports into the EU showed a decrease last year, the drop was merely resulting from the investigation announcement and import volumes remained at a high level, the EC said.

Chinese imports amounted to 773,275 mt in the period of January-June 2016, lower than the prior six month period July to December 2015 when levels reached 806,914 mt, but still higher year on year. The decrease in volumes in the second half of 2016 was due to the anticipated announcement of preliminary duties in October last year. “The decrease of Chinese import volumes after July 2016 can be explained by the chilling effect of the registration request and the knowledge of intention of the Commission to decide on provisional measures within 8 months of initiation,” the EC said.

The EC further said decreasing Chinese imports were likely to be temporary “and such trend would revert if no measures are imposed.”

The investigation found Chinese import prices increased from July last year, but that this was on the back of rising raw material costs and parallel to import prices from other countries. “Hence, despite the increased in price levels, the enormous price depression remains, which puts the EU industry into an unsustainable position.”

“Eurofer welcomes that this case has come to positive a conclusion, with definitive duties of up to 35.9%, augmented from the 22.6% found at the provisional measures stage,” the European steel producers’ association told S&P Global Plats. The preliminary duty rate was at 13.2% to 22.6%.

The EC is also investigating imports of hot-rolled coils from Brazil, Iran, Russia, Serbia and Ukraine in a separate case.

Laura Varriale, PLATTS

 

Company Dumping margin Duty rate
  Bengang Steel Plates Co., Ltd 97.3% 28.1%
  Hesteel Group Co., Ltd 95.5% 18.1%
  Jiangsu Shagang Group 106.9% 35.9%
  Other cooperating companies 100.5% 27.3%
  All other companies 106.9% 35.9%

 

Handel Schweiz – Seminarprogramm April / Mai 2017

Gerne weisen wir Sie auf die nächsten Kurse unseres Seminarprogramms Frühjahr / Sommer 2017 hin. Für alle Kurse sind noch Plätze verfügbar.

Folgende Kurse haben wir für das Frühjahr für Sie organisiert:

Desweiteren möchten wir Sie auf das Nachfolgeseminar zu unserem Webinar vom 15.03.2017 hinweisen. Am 1. Juni findet eine TQS-Vertriebsschulung für Ihre Vertriebsmitarbeiter in Zürich statt:

Die Anmeldung zu unseren Seminaren ist unkompliziert über die interaktiven PDF oder auf der Webseite von Handel Schweiz möglich.

Über Ihre rege Teilnahme würden wir uns freuen. Ihr Feedback ist uns ebenfalls willkommen.

Mit freundlichen Grüssen
Andreas Steffes

Handel Schweiz  |  Commerce Suisse  |  Commercio Svizzera  |  Swiss Trade
Güterstrasse 78  |  Postfach 656  |  CH-4010 Basel
Tel. 061 228 90 32  |  Fax 061 228 90 39

www.handel-schweiz.com  |  info@handel-schweiz.com