EU governments move to strengthen trade defence
The European Council – representing the governments of the European Union’s 28 member states – has agreed in principle to modernize the EU’s trade defence measures. In a statement Tuesday it said the proposed regulation “amends current anti-dumping and anti-subsidies regulations to better respond to unfair trade practices. The purpose is to shield EU producers from damage caused by unfair competition, ensuring free and fair trade”.
In particular, it will address concerns from the steel industry by shortening the investigation period and enabling higher duties to be imposed in certain circumstances.
The European Commission, which proposed a series of measures to strengthen the EU’s trade defence system, welcomed the Council’s decision, saying it represented “a major step in adapting our legislation to today’s economic realities”.
Negotiations will now take place between the Council, the Commission and the European Parliament to agree and implement the changes. As Platts has reported, iron and steel products accounted for 14 of the 18 new anti-dumping investigations initiated by the EU in the January-November this year.
Henry Cooke, PLATTS
EU’s China-origin HDG probe immediately impacts trade
The European commission has officially opened an antidumping investigation into imports of hot-dip galvanized coil from China. This had been widely expected by the market following the complaint lodged in October by domestic producers.
While provisional measures could be imposed in September 2017, the possibility of the addition of retroactive measures is already making the trade of HDG from China into Europe grind to a halt. It is understood retroactive measures could impact arrivals from the beginning of June onwards, with current new orders expected to arrive in Europe not before the beginning of May.
As previously reported by Kallanish, the investigation was launched before the WTO deadline for classifying China as a market economy in trade cases. This has given the European Commission the opportunity to set the prices in the Canadian market as the base level to which Chinese prices will need to be compared in this latest investigation.
China is in line to export some 2 million tonnes of HDG this year to Europe, well above the 1.7mt exported in 2015, as reported. Traders in Europe commented that currently in the market there isn’t any potential other source capable to replace these imports into the EU, implying therefore that the market might feel a shortage of HDG in Europe as well as tension in prices.
“Going forward these investigations will only increment the risk of delocalisation by manufacturers in Europe importing Chinese steel, and will support a price rise in finished goods for the wider public,” a trader said. “European mills this year are making good margins on their sales and the Chinese imports are only an excuse to protect the market.”
EC launches investigation into Chinese HDG
The European Commission has confirmed it will launch an investigation into imports of “certain corrosion resistant steels” from China, more commonly referred to as hot dip galvanized sheet.
The investigation had long been expected in the market, with S&P Global Platts reporting in October sources close to discussions anticipated an imminent probe. In a filing in the European Union official journal Friday, it appears the EC received a complaint on October 25 from Eurofer (the European steel association) on behalf of eight domestic mills.
Imports of coated coils into the European Union rose 49.8% year-on-year in the first nine months of 2016 to 3.42 million metric tons, with Chinese material jumping 86.9% to 1.71 million mt in that time, according to figures published on the Eurofer website.
However, many traders and service centre buyers said the duty was not warranted as Chinese producers typically serve the thinner end of the market, where Europeans are not so active.
Typically Chinese material is around 0.4-0.5mm in thickness, for use in sectors such as construction; whereas European producers tailor output towards the thicker, 2mm, end where demand from the automotive sector is particularly strong and margins are higher. Many argue the measures could result in shortages in certain grades.
The investigation of injury will cover the period October 1 2015 to September 30 2016 and will be concluded within 15 months. Provisional measures may be imposed no later than nine months, although in the recent investigation into Chinese plate and HRC, the EC announced preliminary measures five weeks ahead of schedule.
The specification of the investigations exclude stainless or silicon-electrical steel, limited to flat-rolled products of iron or alloy steel or non-alloy steel; aluminum killed; plated or coated by hot dip galvanization with zinc and/or with aluminum, and no other metal; presented in coils, cut-to-length sheets and narrow strips.
The announcement marks the near completion of trade investigations for Chinese flat products with anti-dumping measures already in place for HRC, CRC and plate.
Peter Brennan, PLATTS
EU service centres see October shipments fall on-year
European steel distributors’ association EUROMETAL tells Kallanish that European Union (EU) distribution sector shipments dipped again while inventories grew year-on-year for flat products in October. Shipments also saw a strong fall in the multi product and proximity distribution sector.
Flat steel service centres (SSC) saw EU shipments dip by -7% y-o-y in October following a -3% fall in September. Despite this, shipments over the first ten months of 2016 have risen by 1% on-year. Stock volumes within EU SSC, when expressed in days of sales, noted 67 days in October 2016, compared with 61 days in October 2015, EUROMETAL says.
EU Multi-Product & Proximity Stockholding distribution, mainly involving longs, tubular products and stainless steel, also registered a decrease in shipments in all main product lines, except for plates, the association adds.
October shipments in this sector dipped by -10% y-o-y but showed have remained flat y-o-y for the first ten months of 2016. Stocks within the EU Multi-Product & Proximity Steel Stockholding Distribution sector, expressed in days of sales, reached 75 days in October 2016, EUROMETAL continues. This compares with 69 days during the same month in 2015.
EU service center shipments fell in October
Shipments by flat steel service centers in the European Union fell 7% year-on-year in October and stock volumes are increasing as a result, according to the latest data released by EUROMETAL.
The federation of steel, tube and metals distribution noted that in the third quarter of the year, shipments were down 3 % y-o-y, a negative turn after the market’s positive start in the first half of the year.
The data adds more supports to distributors’ complaints that the raft of higher mill offer prices has not reflected the demand situation – although of late some service center and stockholder sources have confirmed they are finding it easier to increase their outsell prices as end-users accept the longevity of firmer steel markets.
The year would still appear to have been a solid one so far in terms of sales volumes, with service center shipments growing 1% y-o-y in the first ten months of 2016 and in recent months at much higher sales prices.
Stock volumes within EU service centers are higher than they were last year with inventories – expressed in days of sales – at 67 days in October 2016, compared with 61 days in October 2015.
Traditionally companies will look to run down their stock levels towards the end of the year, preferring to hold cash in hand rather than assets that could lose value. Observers say it will be interesting to note whether this year there will be a change as many expect the market to remain firm for much of the first quarter of 2017.
Peter Brennan, PLATTS
EU investigation on Chinese HDG imminent sources say
The investigation by the European Commission on imports of Chinese HDG in Europe could be launched a soon as in the next couple of weeks, according to sources contacted by Kallanish.
As previously reported, Eurofer has been monitoring for over a year the imports of this product in the continent, with China and South Korea being the main players in the import market.
A source close to the matter noted that the official investigation could be launched ahead of 11 December. This is the final date for Europe to respond on the request by China to be granted market economy status, which could change significantly the process for launching new anti-dumping investigations.
A number of traders note that Chinese HDG importers have been very cautious during recent months as their offer prices remain in line with domestic European offers. One importer said that his company was doing “… moderate business,” adding that if the investigation is begun before the end of the year imports are likely to stop completely in Q1 2017 to avoid retroactive duties.
Werden in Europa die unabhängigen Stahl-Service- Center verdrängt?
Mailand. Der Stahlhandel in Europa wird sich weiter verändern. Vor allem die unabhängigen Stahl-Service- Center müssen um ihre Positionen fürchten.
Die Teilnehmer einer EUROMETAL-Konferenz in Mailand hörten aber auch positive Aussagen.
Die italienischen Stahl-Service- Center haben das konjunkturell bedingte Tief überwunden und sind mit ihren europäischen Mitstreitern bald wieder gleichauf.
Revista Infoacero Noviembre 2016
Pueden acceder a nuestra Revista Infoacero correspondiente al mes de Noviembre.
Les indicamos algunos de los contenidos de la misma:
- Opinión – D. Sergio Cobos de Castro – Presidente de la Zona VII y Miembro de la Junta Directiva de la UAHE.
- Evolución del Índice de Precios UAHE
- XII Fórum Productos Siderúrgicos – Barcelona, 20 de Octubre 2016.
- Subvenciones Tic para PYMES: Ayudas para la implantación de Sistemas Tic en las empresas de Madrid y Galicia.
ThyssenKrupp delivery problems tighten EU coil market
ThyssenKrupp’s European steel division has been hit by a “perfect storm” of events, which have left it struggling to meet orders and seen its offer prices stretch out beyond its competitors’, according to market sources.
Buyers have for months noted the German steelmaker was struggling to meet delivery commitments having suffered two fires which, sources have estimated, cost around 300,000 metric tons of production. A trader said one German service center had delays of six weeks for material due in week 41-42.
A relining of blast furnace B at TK’s affiliate Hüttenwerke Krupp Mannesmann (a 100 day reline that began in September) limited production at a time when the imminent reopening of the Sagunto galvanizing line near Valencia meant hot rolled coil would have to be redirected to act as feedstock for the Spanish mill.
The recommissioning of the 3.5 million mt/y galvanizing line was expected to help alleviate the tightness in the hot-dip galvanized coil market, but sources said the line’s capacity was instantly allocated to the thirsty automotive sector. “We approached ThyssenKrupp on the mill they reopened in Spain but they said all that galv is destined for auto,” a trader said.
A source at the German producer confirmed this, noting the reduction in import options for end-users. “Our galv line sold out instantly. The automotive companies need to buy more from the western Europeans. They all target to buy 10-15% from further afield but now they can’t,” he said, in particular noting anti-dumping tariffs for Russian cold rolled coil.
A number of market sources said ThyssenKrupp was also struggling from having oversold more generally in light of the increased need for domestic supply. Buyers quoted hot rolled coil offer levels from ThyssenKrupp as high as €595/mt ex-works, well in excess of the other major European producers.
“I hear that everybody is more or less at the €550/mt level: there’s one rumour that ThyssenKrupp sold too much around the time of EuroBlech (late October) when no-one was seeing these dramatic increases in coking coal costs, so they try now with remaining volume to make up for this. I can confirm that they’re at a higher price,” a source from another mill said.
While the ThyssenKrupp insider said the mill’s main problems were behind it, domestic supply in the European coil market remains acute with import options increasingly scarce, fuelling confidence that spot prices will increase further. However, fundamental demand remains flat leading service center and stockholder sources to question the sustainability of prices.
A ThyssenKrupp Steel Europe spokesperson confirmed a series of technical problems have disrupted deliveries, but said delivery delays are being managed. The company said it is currently investigating the restart of the Galmed galvanizing line in Spain but did not confirm it has reopened.
The spokesperson declined specific comment on pricing, but said: “In general, we still see big insecurities on the market that particularly result from the currently volatile raw material markets.”
Peter Brennan and Laura Varriale
EUROMETAL World Steel Distribution & SSC Summit [SAVE THE DATE]
EUROMETAL will convene its most important event, World Steel Distribution & SSC Summit, in Düsseldorf on 10-12 May 2017.
This event will be organized at HILTON Düsseldorf hotel.
It will start on Thursday 10 May 2017 at 18.00 hrs with inaugural speeches, followed by a meet and great reception.
The conference program will continue on 11 May 2017 with presentations during the whole day.
Finally the conference will end on 12 May with a site visit to strip electroplating specialist TATA Steel Hille & Müller, located in Düsseldorf.
Below you may find a first outline of the event flyer, including the planned conference program.
Finally, the flyer gives also a discreet hint on sponsoring opportunities related to this major event.
We offer three sponsoring alternatives: Platinum, Gold and Silver.
Sponsoring stands will be located just opposite to the conference room.
The meet and greet reception will happen inside the sponsoring area.