Day: 16 August 2022

The US International Trade Commission has determined that, without countervailing duty orders, cold rolled steel products from Japan, South Korea, China, India and the UK would materially damage the US market, Kallanish learns.

Cold rolled steel products from Brazil were also under review, but the Commission determined that revoking countervailing measures and antidumping duties would not lead to the continuation of material damage in the US.

The Commission instituted reviews 1 June, 2021, determined on 7 September that it would conduct full reviews, and on 24 May conducted its hearing.

Katherine Hiner, acting secretary to the Commission, decided to continue countervailing duties on 9 August.

Kristen DiLandro USA

The European Commission has imposed a definitive anti-dumping duty on imports of various coated flat steel from Russia and Turkey. The collection of these duties is however suspended during the period of EU safeguard measure application, Kallanish notes.

This follows the conclusion of an investigation initiated in June 2021 and decision not to impose preliminary measures in January 2022.

The products investigated fall under HS codes 7210410020, 7210410030, 7210490020, 7210490030, 7210610020, 7210610030, 7210690020, 7210690030, 7210908092, 7212300020, 7212300030, 7212506120, 7212506130, 7212506920, 7212506930, 7212509014, 7212509092, 7225920020, 7225920030, 7225990022, 7225990023, 7225990041, 7225990092, 7225990093, 7226993010, 7226993030, 7226997013, 7226997093 and 7226997094.

The probe found that EU consumption of these products was 10.69 million tonnes of the investigation period, the 2020 calendar year, versus 11.49mt in 2017. Imports from the countries concerned reached 1.1mt in the IP versus 196,643t in 2017. EU production was 9.8mt in the IP versus 10.92mt in 2017, with capacity utilisation down to 73% from 90%.

The duties are 36.6% for MMK, 10.3% for NLMK, 31.3% for Severstal and 37.4% for all other Russian companies. The tariff is 10.5% for MMK Turkey, 2.4% for Tatmetal, 11% for Tezcan, 8% for other Turkish cooperating companies and 11% for all other Turkish companies.

Adam Smith Poland

The UK government says it is considering further relief for energy-intensive industries, such as steel, under new proposals to help subsidise their electricity costs.

The government is consulting on the option to increase the level of exemption for certain environmental and policy costs from 85% of costs up to 100%.

“This reflects higher UK industrial electricity prices than those of other countries including in Europe, which could hamper investment, competition and commercial viability for hundreds of businesses in industries including steel, paper, glass, ceramics, and cement, and risk them relocating from the UK,” the government says in a note.

“The publication of this consultation is a significant step forward in delivering competitive electricity prices for the UK steel sector and should provide some much-needed relief in the face of extremely challenging circumstances at the current time,” says UK Steel director general Gareth Stace. “While there remain difficulties, this announcement demonstrates that UK government understands the challenges of British industry and continues to support steelmakers and steel communities across the country.”

This is a consultation on a targeted support scheme for energy intensive industries, as announced in April in the government’s Energy Security Strategy. Launching this consultation now provides the future government with the option to introduce this scheme given current high electricity prices, the government says.

The separate EII Exemption Scheme meanwhile allows big energy users to claim an exemption of up to 85% of their Contract of Differences (CoD) and Renewables Obligation (RO) costs. The government said in April it would extend for three years the EII compensation scheme and increase its aid intensity to up to 100%, or 1.5% of GVA (see Kallanish passim).

Adam Smith Poland

European hot-rolled coil prices were broadly flat on Monday August 15 amid public holidays, with market sentiment remaining dull, Fastmarkets has heard. Trading activity in the EU HRC market was practically non-existent on August 15 due to public holidays in most member-states.

During the week ended August 12, mills in Northern Europe had taken an aggressive approach to selling excess volumes and filling the gaps in their order books. Traded volumes, however, remained limited due to there being sufficient stocks at buyers.

“Stockholders and steel service centers are mainly focused on selling their devaluing [HRC] stocks rather than buying new material,” a trading source in the region told Fastmarkets.

Market sources suggested that buying activity in the region might not recover until early in the fourth quarter of this year.

Fastmarkets calculated its daily steel HRC index, domestic, ex-works Northern Europe, at €770.00 ($789.64) per tonne on Monday, down by just €4.17 per tonne from €774.17 per tonne on Friday.

The latest calculation of the index was down by €53.75 per tonne week on week and by €81.67 per tonne month on month.

Monday’s index was based on market participants’ estimates of achievable prices heard at €750-780 per tonne exw.

Market sources were questioning whether the HRC price was at rock-bottom once again.

“One month ago, the market was discussing the [HRC] price bottom at €840-850 per tonne exw. Now we are heading closer to €700 per tonne exw,” another trading source told Fastmarkets.

Fastmarkets’ calculation of its daily steel HRC index, domestic, exw Italy, was €770.00 per tonne on Monday, stable day on day.

The latest calculation of the Italian index was down by €2.50 per tonne week on week, but flat month on month.

Italy’s market remained quiet on Monday, sources said. Mills and buyers in the nation were both out of the market but should return in late August-early September.

Before the summer stoppages, transactions for HRC in the nation were heard at €750-770 per tonne exw.

Official offers from domestic mills were heard at €780-800 per tonne exw.

Published by: Julia Bolotova

Domestic prices for hot-rolled coil in both the north and south of Europe were unchanged on Aug. 15 as market activity has been limited.

Tradable value for HRC in Germany has been reported at Eur750-760/mt ex-works Ruhr with majority of sources citing Eur750/mt ex-works Ruhr as an achievable price. Deals had been heard at those prices a week prior.

Platts assessed hot-rolled coil in Northwest Europe at Eur750/mt ex-works Ruhr on Aug. 15, unchanged day on day.

Trading activity in Northern Europe has been slow due to seasonal factors, high inventories of distributors and uncertain outlook among buyers on demand in September.

“There is no clear idea on what the future holds for the market,” a distributor said. “Mood is depressed, the mills need to reduce production and stop dragging prices down. The latest price drop is entirely on European mills, they started to give discounts when everyone though that the market reached bottom.”

The situation has been similar in Italy, but the majority of the country’s mills topped operation for long summer maintenance and another producer temporarily idled furnaces and had limited volumes available for spot buyers.

This, however, did not help to protect prices from decline in Italy, sources said. One producer was reported to sell volumes at low prices to secure sales.

RC in South Europe was assessed stable day on day at Eur720/mt ex-works Italy on Aug. 15.

Market sources estimated tradable value at Eur720-740/mt ex-works Italy. The assessment, however, was left unchanged as the latest deals have been heard at Eur700-720/mt ex-works Italy.

The price decrease from current levels, however, has been questioned by some market sources as steelmakers face rising energy, transportation and emission costs.

— Maria Tanatar