Category: Latest Updates

Exports of ferrous scrap from Germany continued to decrease in January-November 2022, show data from the German federal statistics office.

The volume amounted to 7.2 million tonnes, down by 11% on the 11 months of 2021, Kallanish notes.

However, total export value increased from €4.2 billion ($4.6 billion) to €4.6 billion, thus reflecting the increase in steel scrap prices compared to the previous year, according to market observers.

The main target country is traditionally the Netherlands, but exports to this destination fell even more significantly, by 16% to 1.48mt. To Italy, the second-largest buyer country, 11-month exports dropped by 13% to 1.35mt.

Turkey is the most important customer outside the EU. German direct exports here totalled 624,000t, down by 5% on-year in January-November.

However, the surge continued in deliveries to India, which at 173,134t were up 171% on-year.

On the import side, the federal statistics office reports a 14% drop to 4mt, worth €2.1 billion. The most important trading partner here was also the Netherlands, which provided 874,566t, down by 4% on-year.

The second-largest supplier was Czech Republic with 746,043t, down 16%, and third-largest was Poland with 602,652t, down by 19% on-year.

German scrap prices are expected to increase in January amid new demand and exports (see Kallanish passim).

The 30-40% increase in rail freight prices in Germany from 1 January will inevitably have an impact on scrap trade.

Earlier, German steel recyclers federation BDSV urged for more scrap transport by rail due to logistics problems on road and waterway routes in Germany (see Kallanish passim).

Svetoslav Abrossimov Bulgaria

ArcelorMittal confirms its significant investment in Spain has entered its last pre-execution phase. The approval of financial support for the decarbonisation of the company’s steelmaking sites in Asturias and Sestao, in the Basque Country, must now be evaluated by the European Commission after receiving a green light from its competition regulator.

“There is no approval of the project yet,” an ArcelorMittal spokesperson tells Kallanish. “The Commission’s Directorate General for Competition gave a positive evaluation, and the final decision is up to the EC, which must now rule on the financing within a period of two months.”

The €1 billion ($1.08 billion) project, which is a priority for the steelmaker’s CO2 emissions reduction goals in Europe, will be co-funded by the Spanish government. It includes constructing a 2.3 million tonnes/year green hydrogen-based direct reduced iron unit, complemented by a 1.1m t/y hybrid electric arc furnace. The new DRI unit will be the first of its kind in Spain and will also feed the company’s Sestao works.

Todor Kirkov Bulgaria

Liberty Steel’s coil rolling plants in Belgium have started attracting some interest from potential buyers, according to local Belgian press reports.

India’s JSW Group has allegedly registered its interest for the purchase of the assets, while other steel suppliers are also evaluating the case. Liberty Steel declined to comment when contacted by Kallanish on Monday.

Liberty Steel’s Belgium-based assets include a series of lines for packaging steel located in Tilleur and two hot-dip galvanising lines located in Flemalle. The units can produce up to 1 million tonnes/year of hot-dip galvanized coil and 200,000 tonnes/year of packaging products. They were acquired by Liberty from ArcelorMittal in 2019.

Liberty Steel also controls HDG capacity in neighbouring Luxembourg. These lines, located in Dudelange, remain temporary idled but are not officially for sale.

Emanuele Norsa Italy

The Italian steelmakers’ consortium for direct reduced iron procurement, Ceip Scarl Consorzio Elettrosiderurgici Italiani per il Preridotto, has signed an agreement with the recently formed state company DRI d’Italia. This will aim to study opportunities for collaboration to build DRI production plants in Italy, sources close to the matter tell Kallanish.

The memorandum of understanding signed at the premises of local steelmakers’ association Federacciai last week also involves the future commercialisation of DRI and aims to help decarbonise the steelmaking sector, in line with EU net-zero objectives.

According to the agreement, DRI d’Italia will make available to Ceip consortium members about 2 million tonnes/year of DRI when its first production plant reaches full capacity. The agreement aims to replace DRI imports and reduce the use of scrap in Italy.

In February last year, Italian state company Invitalia, the majority shareholder of Acciaierie d’Italia, created DRI d’Italia to build and operate DRI plants. The first facility would be located at Acciaierie d’Italia but the project will also look at decarbonising other steel mills in the country. Invitalia said the new firm benefits from €35 million ($38m) of funding from Italy’s finance ministry. This can be increased to a maximum of €70m, depending on the project’s development (see Kallanish 17 February 2022).

Natalia Capra France

Welded tube values in Europe are set to increase, in line with higher contract prices and quotes for hot rolled coil.

Tube prices have increased compared to December, as discounts were reduced by 2 or 3 points in Western Europe, but the increases are slower compared to the price hikes seen for HRC. Re-rollers and distributors in Italy and France say that demand remains fragile from some sectors such as automotive and appliances where consumption is now considerably lower. Other sectors like construction and energy are performing better, Kallanish notes.

The tube price fall accelerated in December, bringing some values below sustainable levels. Over the past two weeks, however, in Germany, Italy and other European countries, prices have increased in line with hiking coil values and some need for restocking.

The level of discounts in Italy reached some 38-39 points last month and has now fallen to some 35-36, but tubemakers need to continue to push up their prices to ease the current margin squeeze. In Italy, they intend to recover 5 points in the second half of January, the equivalent of €70-80/tonne ($76-87), depending on product, and reach a level of discount of 30 points on average gradually by 1 February.

As some welded tube prices are unsustainably low, both producers and distributors are in need of increasing margins or risk stopping production lines to avoid selling at a loss. This year, re-rollers in Europe are dealing with high transport costs, particularly in Germany, France and Eastern Europe, following the increases implemented for railway freight and intermodal transport starting this month.

Energy prices remain an issue as some steelmakers and re-rollers are paying higher prices in the first quarter after their annual or six-month energy contracts expired in 2022. Uncertainty, longer lead times of now pricey coil and limited import offers are adding to the issue of high production costs.

Natalia Capra France

Following some buying activity in the wake of price increases, the northwest European coil market has seemingly re-entered a period of reservation, with transaction activity slowing. Observers’ views diverge, however, on whether the reservation is more on the side of the mills or their customers.

ArcelorMittal’s January announcement of a base price for hot rolled coil at €760/tonne ($843), cold rolled coil at €860/t and galvanized coil at €880/t will not be the last word, a Dutch manager believes. “New price increases cannot be ruled out again soon,” he says.

A German buyer forecasts the mills will charge €780/t for HRC as soon as they return to the market – which they have left for the time being. “A colleague heard from a mill that he’d have to wait two weeks before it will again accept orders – and give out prices,” he tells Kallanish, stating that order books are full for the first quarter. Both the German and Dutch sources see the major mills following the market leader in this regard.

An alternative view comes from a buyer at a German processor, who is sure the current standstill comes from the decision of buyers not to place orders. He is also sure that €760/t “is too high, nobody will pay that”, and claims that tonnages can still be had for delivery in Q1.

The next two weeks should bring some clarity once mills return to offering, potentially but not necessarily at even higher prices.

Christian Koehl Germany

Domestic prices for heavy plate increased across the EU in the week ended Jan. 20 amid support from solid demand and higher slab costs.

Demand has mainly increased from projects. While distributors buying material on spot basis have not shown higher demand, they have accepted the price increase.

“Plate producers are focusing on projects nowadays and for a good part of this year,” an Italy-based source said.

Platts assessed domestic heavy plate prices in Northwest Europe up Eur50 on the week at Eur990/mt ex-works Ruhr on Jan. 20.

Tradable values and offers were reported at Eur980-Eur1,000/mt ex-works Ruhr.

Platts assessed domestic heavy plate prices in South Europe at Eur860/mt ex-works Italy, up Eur20 week on week.

Spot deals were reported at Eur850-Eur870/mt ex-works Italy.

Italian re-rollers were targeting Eur900/mt ex-works for heavy plate, as the increase was needed to cover rising slab costs.

“Demand is gradually getting better; it is nothing crazy but we bigger buyers accepting higher prices,” a mill source said. “And we need to cover higher slab costs.”

Platts assessed import slab prices in Italy up $50 on the week at $690/mt CIF Italy on Jan. 20.

“Last week they increased substantially with workable levels around $700/mt CIF Italy – some producer less, some producer more than the mentioned level,” an Italy-based re-roller said. “Heard some earlier booking at $670-$680/mt CIF.”

Market participants, however, said that prices below $690-$700/mt CIF Italy were no longer available.

Platts is part of S&P Global Commodity Insights.

— Maria Tanatar

Competition in the global steel markets remains fierce. Fastmarkets is therefore providing an update on potential, new, in-progress and closed anti-dumping (AD) and countervailing duty (CVD) cases; safeguards; sanctions and free-trade agreements from around the world in December 2022. The case list below includes updates only.

For other continuing cases this year, see the updates for November.

Updated cases for December include:

1 Eurasian Economic Union (EAEU) extendingf anti-dumping duty on imports of PPGI from China until September 15, 2023, for a period of re-investigation.

2 South Africa sets six-month export ban on scrap

3 Thailand imposed anti-dumping duty at 6.28-51.69% on cold-rolled stainless flat steel from Indonesia, Malaysia.

4 Saudi Arabia announced new legislation for remedies on imports, including steel.

5 EU reviewed safeguard measures, keeping them unchanged.

6 The US continued an anti-dumping order on steel flanges from India, Italy, Spain and a CVD order on material of Indian origin.

7 The US maintained duties on welded stainless pipe from South Korea, Taiwan.

8 The US made a preliminary determination assigning dumping margins of 13.72% for Husteel and 0.00% for Nexteel.

9 Japan imposed anti-dumping duty of 9.8-41.7% on hot-dipped galvanized steel wire from South Korea and China.

10 The EAEU and UAE decided to start negotiations on a free trade agreement.

11 Brazil to decide whether to apply countervailing duties to hot-rolled coil from China by January 21, 2023.

12 The EAEU introduced anti-dumping duty on steel gate valves for pipelines from China for five years.

13 The EAEU introduced anti-dumping duty on ferrosilicon manganese from Georgia for five years.

14 The US continued anti-dumping duty orders on circular welded carbon-quality steel pipe from Oman, Pakistan, and the United Arab Emirates.

15 Russia extended its quota regime on ferrous scrap exports outside the Eurasian Economic Union (EAEU) until June 30, 2023.

Published by: Elina Virchenko

Der Carbon Border Adjustment Mechanism (CBAM) wird große Teile der deutschen Industrie betreffen. Alle Unternehmen innerhalb der EU, die Eisen, Stahl, Zement, Aluminium, Elektrizität, Düngemittel, Wasserstoffe, Vor- und einige nachgelagerte (insb. Eisen- und Stahl-) Produkte – in reiner oder verarbeiteter Form – aus Nicht-EU Staaten importieren, fallen unter die Regeln des CBAM. Bereits ab 01. Oktober 2023, mit dem voraussichtlichen Beginn der Übergangsphase, werden diesbezüglich erste Meldepflichten auf sie zukommen.

Welche Ziele verfolgt CBAM?

CBAM ist Teil des „Fit für 55“ Pakets der Europäischen Union (EU). Dieses Paket verfolgt das Ziel, die CO₂-Emissionen um 55 Prozent bis 2030 im Vergleich zu 1990 zu reduzieren. Bereits seit 2005 bildet der Europäische Emissionshandel (EU-ETS) das zentrale Klimaschutzinstrument der EU. Dabei hat der EU-ETS entscheidende Auswirkungen auf die betroffenen Unternehmen. Aufgrund dessen ergibt sich das sog. „Carbon Leakage“- Risiko, bei dem Unternehmen in bestimmten Sektoren und Teilsektoren aus Kostengründen ihre Produktion in andere Länder verlagern müssen. Infolgedessen werden die Wirksamkeit der EU-Maßnahmen zur Emissionsreduktion gefährdet. An dieser Stelle setzt der CBAM als unterstützender Mechanismus an.

Wie werden die Abgaben für den CBAM berechnet?

Laut des Carbon Border Adjustment Mechanism (CBAM) wird eine Abgabe auf die Einfuhr bestimmter, außerhalb der EU hergestellter Waren auf Grundlage der damit verbundenen Kohlenstoffemissionen erforderlich. Die Abgabenhöhe richtet sich nach dem durchschnittlichen Wochenpreis für EU-Emissionszertifikate (EU-ETS), damit der CO₂-Preis möglichst genau abgebildet werden kann. Dieser durchschnittliche Wochenpreis wird mit der Anzahl an abzugebenden CBAM-Zertifikaten multipliziert, wobei ein CBAM-Zertifikat einer Tonne ausgestoßenen Emissionen an CO₂ (oder NO₂, PFC) entspricht, welche im Herstellungsprozess der importierten Güter freigesetzt wurden.

Sind für den CBAM-Prozess besondere Genehmigungen oder Zertifikate erforderlich?

Für den Import von zukünftigen CBAM-Produkten und dem Erwerb von CBAM-Zertifikaten ist eine gesonderte Genehmigung erforderlich (sog. Autorisierter Anmelder). Falls keine CBAM-Zertifikate vorliegen und/oder falsche Angaben gemacht worden sind, wird die Zulassung und der damit verbundene Import verweigert. Vor diesem Hintergrund ist zu beachten, dass Anmelder eine Verringerung der abzugebenden CBAM-Zertifikate geltend machen können, um dem im Herkunftsland gezahlten CO₂-Preis Rechnung zu tragen.

Betroffen sind die folgenden emissionsintensivsten Produktgruppen:

• Eisen und Stahl
• Aluminium
• Zement
• Düngemittel
• Elektrizität
• Wassertstoffe
• Vorprodukte
• Einige nachgelagerte (insb. Eisen- und Stahl) Produkte 

Anmerkung: In der Übergangsphase wird evaluiert, ob Chemikalien und Polymere als auch weitere nachgelagerte Produkte ebenfalls von CBAM betroffen sein werden.

Übergangsphase vs. Implementierungsphase von CBAM

Vorgesehene Übergangsphase ab 01. Oktober 2023

Nach der aktuellen Verordnung ist geplant, CBAM schrittweise im Rahmen einer Übergangsphase von Oktober 2023 bis Dezember 2025/2026* einzuführen. Während dieser Phase müssen Unternehmen

• die direkten und indirekten Emissionen, welche im Produktionsprozess der importierten Güter entstanden sind, berechnen und dokumentieren sowie
• einen vierteljährlichen Bericht (erstmalig April 2023) – sog. CBAM-Bericht – einreichen, welcher Daten bezüglich der Importmenge der direkten und indirekten im EU-Ausland ausgestoßenen CO₂-Emissionen und dem im Herkunftsland gezahlten CO₂-Preis enthält.

Allerdings müssen in diesem Zeitraum noch keine finanziellen Ausgleichszahlungen entrichtet werden.

*Nach offizieller Verabschiedung des Gesetzes wird bestimmt, ob die Übergangsphase drei oder vier Jahre andauern soll.

Vorgesehene CBAM-Implementierungsphase ab 01. Januar 2026/2027**

Voraussichtlich ab Januar 2026/2027 ist der vollständige Go-Live vom Carbon Border Adjustment Mechanism (CBAM) angesetzt. Ab diesem Zeitpunkt kommen weitreichendere Verpflichtungen auf Unternehmen zu, welche sich wie folgt zusammenfassen lassen:

• Antrag auf Erteilung einer CBAM-Anmeldeberechtigung bei der CBAM-Behörde am Ort der Niederlassung.
• Berechnung der eingebetteten direkten und indirekten Emissionen der Einfuhrware in die EU.
• Überprüfung der angegeben Daten zu den direkten und indirekten Emissionen durch eine akkreditierte Prüfstelle.
• Kauf der entsprechenden Anzahl an CBAM-Zertifikaten bei der zuständigen CBAM-Behörde, die zur Deckung der eingebetteten direkten und indirekten Emissionen erforderlich sind.
• Die Verfassung und Einreichung einer jährlichen CBAM-Erklärung bis zum 31. Mai jeden Kalenderjahres für die mit dem vorausgehenden Kalenderjahr importierten Güter verbundenen Emissionen. Die entsprechende Anzahl an CBAM-Zertifikaten muss ebenfalls an diesem Stichtag abgegeben werden.

**Nach offizieller Verabschiedung des Gesetzes wird bestimmt, ob die Implementierungsphase im Jahr 2026 oder 2027 beginnt.

Wie kann Deloitte Ihnen helfen, die Richtlinien des Carbon Border Adjustment Mechanism umzusetzen?

Deloitte unterstützt Sie bei einer durchgängigen Compliance Ihrer Handelstätigkeit, um mithilfe der Regeln der CBAM-Verordnung diese vorzubereiten und mögliche Sanktionen zu verhindern. Bei einer Nichteinhaltung von CBAM-Vorschriften drohen hohe Geldstrafen bis hin zu einer völligen Entziehung der Zulassung als Einführer in die EU. Um sich im Voraus vorzubereiten, können Sie schon heute mit uns entscheidende Maßnahmen in die Wege leiten: Bereits vor dem Anlauf der Übergangsphase können wir einen Quick Scan Ihres Business vornehmen und Sie fit für CBAM machen.

Der CBAM Quick-Scan beinhaltet:

• Entwicklung eines CBAM-Action-Plans in Bezug auf das Produktportfolio, die Lieferkette und die betroffenen Organsationseinheiten
• Identifizierung und Evaluierung des Produktportfolios, das von CBAM betroffen ist
• Überprüfung des Beschaffungsmusters und der Herkunft der betroffenen Produkte
• Bewertung der aktuellen Readiness für CBAM (anhand bestehender Verantwortlichkeiten und Kompetenzen)
• Analyse der aktuell verwendeten zollrechtlichen Vertretungskonstellationen
• Erstellung einer Roadmap für die Übergangsphase und den Go-Live in 2026

Sie haben weitere Fragen zum Carbon Border Adjustment Mechanism (CBAM) und zum Leistungsangebot von Deloitte? Dann melden Sie sich gerne beim untenstehenden Ansprechpartner.

Source: deloitte.com

Turkey’s exports of hot-dip galvanized coil fell over January-November, especially in the second half of 2022, the latest Turkish Statistical Institute data shared with S&P Global Commodity Insights showed, amid the imposition of the antidumping duty by the European Commission on Turkish HDG imports in August and lower demand stemming from recessionary concerns.

Turkey’s coated steel coil exports, mostly HDG coil, fell 34% year on year to 1.43 million mt over January-November, the data showed.

Exports to Spain fell 75% on the year to 143,300 mt, while shipments to Romania remained relatively stable at 128,200 mt. Supplies to Greece and Italy declined 12% and 60% on the year to 94,600 mt and 73,400 mt, respectively, over the same period.

Similarly, on a year-on-year basis, shipments to Portugal and Belgium fell 70% to 45,000 mt and 80% to 43,600 mt, respectively.

Exports to the US also declined 8% on the year to 128,000 mt, and other export destinations for the period included Canada at 57,000 mt and Egypt at 55,000 mt.

According to a large Turkish service center manager, the antidumping duty on Turkish HDG has affected Turkey’s competitiveness in the EU market, and there could be some downward correction in Turkish offers in the coming days.

“The sharp rise seen in Turkish mills’ HDG offers amid high scrap and energy costs in recent days has also harmed the Turkish mills’ competitiveness,” the manager added.

“The gap between Turkish suppliers and rival HDG offers to the EU reached $60-$70/mt EXW as Turkish mills’ 0.50 mm thick 100 mg zinc coated HDG offers reached $1,000/mt EXW [recently],” the manager said.

“Mills’ CRC offers to the market remained in the range of $860-$890/mt EXW,” he said, adding that lower South Korea-origin CRC offers at $820/mt CFR had been continuing to put pressure on domestic pricing.

A producer source also confirmed Turkish HDG and CRC prices were at $1,000/mt EXW and $860/mt EXW, respectively, amid slow demand.

Platts, part of S&P Global, assessed the weekly Turkish domestic HDG price at $950/mt EXW Jan. 20, down from the intra-year high of $1,400/mt in mid-March 2022.

— Cenk Can