European Commission to hold workshops ahead of CBAM rollout
The Commission is organising six online webinars, covering general features of the CBAM as well as the specifics of each sector (iron & steel, aluminium, cement, fertilisers, electricity and hydrogen).
Interested stakeholders are invited to register and participate in the webinars, and will have the possibility to ask questions which will be answered live. All webinars will be recorded and uploaded on the Customs & Tax EU Learning Portal.
The registration links will become available on this page.
customs-taxation.learning.europa.eu
| Topic | Date and registration |
| Cement | 15 September 2023, 10:00-11:30 (CET time) |
| Aluminium | 21 September 2023, 14:00-15:30 (CET time) |
| Fertilisers | 26 September 2023, 11:30-13:00 (CET time) |
| Electricity | 28 September 2023, 09:30-11:00 (CET time) |
| Hydrogen | 3 October 2023, 15:30-17:00 (CET time) |
| Iron and steel | 5 October 2023, 16:00-17:30 (CET time) |
A seventh webinar for National Competent Authorities will also be organised. The date will be communicated at a later stage.
E-learning courses
A first nano-learning module gives a short top level introduction to CBAM for EU importers and customs declarants and third country operators. It presents the purpose and aims of CBAM, and implications for importers and declarants, the main criteria for CBAM pricing, the six sectors targeted by CBAM and the roles and responsibilities within the CBAM administration system, as well as planning priorities including key milestones and explains the calculation methods and reporting requirements.
Further training modules covering sector-specific content will soon become available on the Customs & Tax EU Learning Portal.
Proposed changes to Section 232 exclusions a ‘mixed bag’ for US steelmakers
A proposed new rule issued by the US Commerce Department’s Bureau of Industry and Security this week, aimed at improving the exclusion process for Section 232 steel and aluminum tariffs, appears to be a “mixed bag” for the domestic industry, according to American Iron and Steel Institute CEO Kevin Dempsey.
There is one proposal the domestic industry, and specifically the AISI, has recommended in earlier comments to Commerce on how to improve the exclusion process, however overall, the department is trying to improve a system that is fundamentally flawed, Dempsey said in an interview with S&P Global Commodity Insights Aug. 30. The AISI was still working through details of the proposal and will be filing comments to Commerce on the planned changes, he said.
Proposed changes
The proposed rule issued Aug. 28 include four primary changes “intended to create a more transparent, fair and efficient process,” the BIS said. These include changes to the existing “general approved exclusions process,” the introduction of a “general denied exclusions” process, the introduction of new certification requirements to show that a requester has tried to source the product from the US or from countries that are already excluded from the tariffs, and similar certification on objections to ensure domestic companies that raise an objection to a request can supply a comparable quality and quantity of steel or aluminum and make it “immediately available.”
After the US introduced tariffs of 25% on steel imports and 10% on aluminum imports in March 2018, Commerce established a process for US companies to file product-specific exclusion requests for cases where there are no domestic availability or overriding national security concerns regarding the specific product.
The latest proposed changes stem from a January 2022 order that President Joe Biden instructed Commerce to seek public comments on the exclusion process.
Steel Manufacturers Association President Philip Bell said in a statement to S&P Global that while the SMA “appreciates the Bureau’s attempt to address the many fundamental concerns that the domestic steel industry has voiced regarding its management of the Section 232 exclusions process, the proposed changes will do little to address an overly broad exclusions process that favors foreign steel producers over the domestic industry.”
Representatives of the Aluminum Association said they are reviewing the proposed changes.
Domestic industry supports changes
The AISI and domestic steelmakers are supportive of requiring those making exclusion requests to show they have attempted to source the product from countries that have already negotiated alternative arrangements to the tariffs, in addition to attempts to source in the US, Dempsey said.
Countries that have either had the tariffs fully removed or have had them switched to a tariff-free quota system include Argentina, Australia, Brazil, Canada, the EU, Japan, Mexico, South Korea and the UK.
“Most steel products are available in the US so you shouldn’t need an exclusion for the vast majority of steel products,” Dempsey said. “But if you add in all these other countries that are exporting steel duty-free to the US, that’s a lot of sources of steel products. You shouldn’t even be requesting an exclusion from the 232 until you’ve actually tried all of these sources where you can buy steel without paying a tariff.”
GAEs vs. GDEs
One of the biggest unknowns with the proposed change is what products would fall under a newly established list of “general denied exclusions,” or GDEs. BIS said this would include products that have consistently been found to have been manufactured in the US and would be identified following an analysis of substantiated objections and exclusion requests that have generally been consistently denied.
While there could be some benefit to the domestic industries under the new GDE process, depending on which products qualify, the move seems more in line with trying to balance the “general approved exclusions” process that the US steel industry has opposed, Dempsey said.
“The general approved exclusions, which they’re trying to make some additional adjustments to, really are a fundamental problem because in that area, they’ve said ‘well, if we find products that a lot of exclusions were granted, we’re going to take the tariff code for those products and say that anything coming in under those tariff codes can be duty free,’” Dempsey said.
The problem for domestic steelmakers is there are generally many steel products that fall under the same tariff code, so while the domestic industry may not object to one niche product with a low volume, using the associated tariff code to apply a blanket exclusion can greatly expand what is allowed to enter duty free past the original request.
“We think the general approved exclusion process was a mistake and should still be changed,” Dempsey said. “It needs to be, frankly, we think, eliminated because it’s allowing exclusions for products that the steel industry can definitely make in the US.”
BIS has proposed creating a “more efficient” GAE process by changing the criteria generally used for determining GAEs by focusing on the substance of objections submitted rather than whether any objection has been submitted or not.
BIS is collecting public feedback on the proposed rule through Oct. 12.
Author Justine Coyne
UK Steel welcomes hot-rolled flat steel anti-dumping, countervailing measures’ extension to 2027
- Anti-dumping, countervailing measures on Chinese HRC imports maintained through April 2027
- Anti-dumping measures on Brazilian, Iranian, Russian imports maintained through October 2027
- Association supports termination of measure on Ukrainian imports
The UK steel sector welcomes the continuation of anti-dumping and anti-subsidy measures on hot-rolled flat steel imports into the UK until 2027 and supports the termination of the measure on imports from Ukraine, the UK Steel Association told S&P Global Commodity Insights on Aug. 31.
The UK government accepted the Trade Remedies Authority’s final recommendation to keep the anti-dumping and countervailing measures on hot-rolled flat and coil steel from China until April 7, 2027, and to keep the anti-dumping measure on imports from Brazil, Iran and Russia until Oct. 7, 2027. The UK’s export ban on all imports from Russia due to the war in Ukraine also has been extended to hot-rolled flat and coil steel.
“China, Russia, Brazil and Iran all have steel sectors that are multiple times the size of the UK steel industry, with huge amounts of spare capacity and with considerable state intervention in many of these markets,” a UK Steel spokesperson said. “It is no coincidence that the EU, the US, Canada, Thailand, Mexico and Indonesia all have measures in place on some or all of these countries, which would further increase the risk to the UK as a result of trade diversion.”
The UK government also welcomed the TRA’s recommendation that anti-dumping measures on imports from Ukraine should be revoked. The TRA concluded that dumping of products from Ukraine was unlikely to recur due to reduction in Ukraine’s production capacity and limits on the ability to export caused by the war with Russia. The TRA also took into account Ukraine’s requirement to rebuild steel production facilities and domestic demand for steel to rebuild the country’s infrastructure.
European hot-rolled coil prices move up on firmer mill offers
European hot-rolled coil increased Aug. 31 on firmer offers by European mills that want to use momentum from the start of restocking after the summer holidays, sources told S&P Global Commodity Insights.
While the bigger economic sentiment, particularly in Germany, remains negative, short- to mid-term sentiment turned more optimistic as inquiries continued to increase.
Several European mills are trying to enforce Eur700/mt EXW Ruhr or delivered Northern Europe. Workable levels reported remain lower, but buy-side sources said it would be getting difficult to get material below Eur670/mt EXW Ruhr on the spot market from mills in the region.
One Benelux buyer reported achieving Eur635/mt EXW Ruhr for 2,000 mt, but repeatability of the deal could not be confirmed by the end of assessment day at 4.30 pm London time.
Also, the Italian market started to see higher workable levels with reports of Eur640-650/mt EXW Italy for HRC from several buyers.
“Margins are below par in the steel industry at the moment, so either raw materials are decreasing or prices move up,” a Northern European mill source said.
However, sources said actual buying had not started in the Italian market and purchasing is expected to start the following week.
The mills’ announcements on the European mainland were also heard in the UK market, though UK buyers said they were still waiting to receive revised offers for imports ex-EU.
Platts assessed HRC EXW Ruhr up Eur5/mt day on day at Eur670/mt Aug. 31, while Platts assessed HRC EXW Italy at Eur640/mt, up Eur5/mt day on day.
Author Laura Varriale
Turkey’s scrap imports surge in July
Following three months of consecutive declines, Turkish scrap imports recovered in July, surging 37.3% on-year to 1.89 million tonnes, according to Turkish Statistical Institute (TUIK) data monitored by Kallanish. They were also up from 1.73mt in May and 1.22mt in June.
Over 99%, or 1.877mt, of the July imports were obsolete scrap. The average price of this scrap was $396/tonne, down from $463/t in July 2022 and $422.5/t in June 2023.
| Country | July 2023 | July 2022 | Change (tonnes) |
| USA | 620,092 | 379,281 | +240,811 |
| Netherlands | 185,523 | 106,932 | +78,591 |
| UK | 145,201 | 157,621 | -12,420 |
| Belgium | 141,707 | 108,049 | +33,658 |
| Lithuania | 114,914 | 66,043 | +48,871 |
| Romania | 105,064 | 68,615 | +36,449 |
| Germany | 82,598 | 26,695 | +55,903 |
| Russia | 73,548 | 24,488 | +49,060 |
| Venezuela | 72,128 | 86,081 | -13,953 |
| France | 64,332 | 49,807 | +14,525 |
| Libya | 39,854 | 8,879 | +30,975 |
| Italy | 33,789 | 21,532 | +12,257 |
Denmark, which supplied 96,691t last year, provided only 29,109t in July.
In January-July, Turkey’s overall scrap imports fell 16.9% on-year to 11.52mt. The US, with 2,609,413t, was by far the largest supplier, followed by the Netherlands and Belgium.
Meanwhile, Turkish rebar exports more than halved to 1.70mt in January-July (see Kallanish passim).
Burcak Alpman Turkey
Plate market still slow in NW Europe
Activity in the northwestern European plate market remains in suspended animation, according to sources from the buyers’ and the sellers’ sides. And they are unanimous that a silver lining is not on the horizon.
“There is no move to be seen anywhere. It is really very awkward,” a German buyer tells Kallanish. Prices have not moved in the course of the summer once they settled at around €850/tonne ($922) for S355 ex-works.
Mills might not want to sell for less because the floor price for any profitability is already reached, one mill source says. He concedes that “we sell very little,” especially in an environment of low-priced offers from various countries.
From Poland, offers of around €780/t ex-works are reported, a level that is on par with the prices in Italy. However, orders from either would have to add transport costs of easily €50-60, bringing them closer to the northwestern domestic prices. This is evident in offers from a southeastern European of €870/t delivered Ruhr, pretty much on par with the domestic prices.
Overseas imports make little difference. “I have just received an offer from India for €820 delivered to my warehouse,” a German stockholder says. He does not consider it attractive, as delivery would likely take until January, “and who knows where prices are then.” Lead times from EU domestic mills are eight weeks, he adds.
According to a northern source, “only very rare information about new prices is available; it seems the integrated mills are not yet really back to the market.”
Christian Koehl Germany
Antwerp port holds up against economic doldrums
The Port of Antwerp-Bruges in the first half of 2023 was able to hold its own in an environment of economic instability, it says in a press release received by Kallanish.
The total throughput of the port was 139 million tonnes of goods in the first six months of this year, a fall of 5.5% compared to the same period last year. While the global economic situation is causing a drop in demand for container transport, other cargo flows show a mixed picture.
Despite the weak economic climate, conventional breakbulk, which includes steel, is holding up quite well, the port states. Throughput volumes are in line with the pre-Covid-19 period, but down 17.2% compared to the same period in 2022. The port emphasises that last year showed exceptionally high throughput rates due to a strong post-Covid-19 recovery.
This year, the slowing economy is accompanied by a decline in demand for steel – the most important cargo group within the conventional breakbulk segment. Steel throughput, both import and export, decreased in total by 18%, to 3.93 million tonnes. Of the total, 2.39m tonnes were incoming shipping, while 1.54m t were exports.
Last year, the ports of Antwerp and Zebrugge merged to become one company. Steel transshipment in the port of Zeebrugge is virtually non-existent, though. All steel traffic takes place in Antwerp.
In the current unstable economic conditions, the port says it is gaining market share in container handling compared to the other ports in the Hamburg – Le Havre range.
Christian Koehl Germany
Italian car production continues to increase
Italian passenger car output confirmed its upward trend in June and in the first half of the year, Kallanish notes from preliminary data from local carmakers’ association Associazione Nazionale Filiera Industria Automobilistica (Anfia).
Italian car production increased year-on-year by 24.7% in the first six months of 2023 to 298,309 units. In June it spiked by 92.1% on-year to 54,960 cars. By comparison, Spanish car output in June grew by 1.1% to 189,283 cars and by 12.6% to 1 million units in January-June. German output also increased significantly in the first half by 32% to 2.2m units and by 31% to 389,900 cars in June. The UK also recorded increases, of 16.2% to 84,767 cars in June and 11.7% to 450,168 units in January-June, Anfia reveals.
Italian passenger car output hiked 6.6% y-o-y in full-year 2022 to 473,149 units. In 2021, Anfia registered 442,432 units produced in the country, and 451,718 units in 2020.
Italy has 23 car production plants. Spain has 17 plants, France 31 and Germany 42.
Natalia Capra France
New ceo appointed at ArcelorMittal Duisburg
ArcelorMittal Germany announces that Paul Teteroo will step down as ceo of the group’s Duisburg mill, to be replaced by Cem Kurutas as of 1 January 2024.
After nine years as ceo of the Duisburg long products site, Teteroo will assume a new position at the group’s headquarters in Luxembourg, Kallanish hears. For the remainder of this year, the ceo of ArcelorMittal Hamburg, Uwe Braun, will head operations at the Duisburg mill.
Kurutas has most recently served as vice president of Outokumpu Nirosta in Germany.
Christian Koehl Germany
Near-zero activity reported across Northern European long steel market
Industry participants have remained largely absent from the market because of summer closures across Europe. Mills across most of Europe are expected to reopen in the first week of September.
The few sources who had returned to market reported bearish sentiment regarding both demand and prices in the coming month.
“The market is very quiet. Mills are not expected to drop prices further unless scrap goes down also. They would rather stop production,” a trader source in Germany said.
Fastmarkets’ weekly price assessment for steel reinforcing bar (rebar), domestic, delivered Northern Europe, was €575-605 ($627-659) per tonne on Wednesday, unchanged since July 19.
Seasonality and depressed demand also resulted in extremely quiet conditions in the Northern European rebar market. As a result, prices were unchanged.
At the same time, Fastmarkets’ weekly price assessment for steel wire rod (mesh quality), domestic, delivered Northern Europe, was €570-610 per tonne, flat since July 12.
