Category: Latest Updates

Turkey has set new customs duties on some flat and long steel products from Organization of the Islamic Conference, or OIC, member countries under the preferential trade arrangement framework agreement, with a presidential decree published June 25.

According to the decree seen by S&P Global Commodity Insights, the duties will be imposed from July 1 on some steel products imported from Bahrain, Bangladesh, the United Arab Emirates, Morocco, Iran, Qatar, Kuwait, Malaysia, Pakistan, Saudi Arabia, Oman and Jordan.

Hot-rolled coils under HS code 7208 will be subject to customs duties of 9% and 13%, depending on thickness and carbon content, while cold-rolled coils under HS code 7209 will be subject to a duty of 10%.

The duty for uncoated flat steel products with widths below 600mm under HS codes 7211 will be 15% and the duty for steel sections under HS codes 7216 will be 16.5%.

According to the decree, duty on CRC imports by the Turkish white goods sector will temporarily be 7%.

Industry sources also expect upward adjustments in customs duties on flat steel products from the EU and some Asian countries, as low priced imports, especially from some Asian producers, have been putting pressure on Turkish mills’ flat steel pricing.

The Turkish Trade Ministry is expected to announce the final decision on its antidumping investigation into HRC imports from the EU and South Korea in late-June or early-July, industry sources said.

Turkish mills HRC prices exceeded $1,200/mt in mid-March amid some availability issues due to the war in Ukraine, but have declined since April on low demand and was assessed by Platts at $750/mt FOB on June 24.

— Cenk Can

The European hot-rolled coil market fell June 27 due to weak demand.

Platts assessed hot-rolled coil in Northern Europe down Eur10/mt from the previous session at Eur845/mt ex-works Ruhr June 27, S&P Global Commodity Insights data showed.

Producer sources considered the tradable value at Eur850/mt ex-works Ruhr and Eur830-Eur850/mt ex-works Ruhr, respectively, as prices continued to fall.

“There is still downward pressure on domestic prices from poor demand,” said a mill source. “There is no light at the end of this tunnel — prices will drop further.”

End-consumer demand was “non-existent,” according to multiple sources.

HRC was assessed stable in the Southern market at Eur780/mt ex-works Italy.

Service center sources said prices of Eur780/mt ex-works Italy were achievable, with another service center source citing a buyer bid level at Eur780/mt against offers at Eur820-Eur830/mt ex-works Italy.

Offers in the import market were reported at Eur740-Eur760/mt CIF Italian ports ex-Asia.

Sources cited a potential downward price driver from the Turkish market on the day, with a mill ready to offer HRC competitively at $650/mt FOB Italy ex-Turkey — the equivalent of Eur690-Eur695/mt CFR, duty included.

— Benjamin Steven, Maria Tanatar

As the market awaits the UK’s formal approval of steel import safeguards by the end of June, UK Prime Minster Boris Johnson indicated in his speech at the G7 Summit in Germany that steel tariffs will likely be extended to protect the British steel industry.

Johnson told the summit June 26 that the UK steel industry was “going through a difficult time, partly because of energy prices,” and until British steel could be provided with cheaper energy and electricity for its blast furnaces, it was “reasonable for UK steel to have the same protections that absolutely every other European steel economy does.”

The UK Secretary of State for International Trade Anne-Marie Trevelyan recommended June 23 that the UK extends tariffs and quotas on 15 categories of steel products to sustain domestic steel production for a further two years.

The proposal is expected to be given formal approval in parliamentary business June 30.

The UK safeguards system, which is due to expire on June 30, has been under review since late 2021. It mirrors the EU safeguards system, put in place in mid-2018 in response to the US’s imposition of Section 232 import tariffs of 25% on steel imports in March 2018.

UK industry is partly dependent on imported steel, as it produces only around 70% of its annual requirement of around 10.2 million mt crude steel, according to trade body UK Steel.

A tightness in some products, and soaring energy costs, led to abrupt price increases in many steel products since Russia’s Feb. 24 invasion of Ukraine.

Platts assessed the weekly UK hot-rolled coil price at GBP1,220/mt ($1,495/mt) DDP West Midlands June 24, up from GBP830/mt at the start of 2022, according to S&P Global Commodity Insights data.

Trevelyan proposes that, based on the basis of a Report of Findings from the Trade Remedies Authority, or TRA, the measure should be extended for a further two years to June 30, 2024 for category 6 (tin mill products), category 7 (non-alloy and other alloy quarto plates), category 12 (merchant bars and light sections), category 16 (non-alloy and other alloy wire rod) and category 17 (angles, shapes and sections of iron or non-alloy steel).

The conclusion was reached as there was clear evidence that if it was discontinued, “there would be serious injury or the threat of serious injury to UK producers,” the government said.

The trade secretary also concluded that the retention of the measure was in the economic interest of the UK.

The TRA identified severe supply problems for category 12, potentially involving associated increased costs to businesses using those products, which resulted in Trevelyan proposing a tariff-free quota increase for the category 12a by 126,136 mt to better reflect trade flows.

The steel safeguard measure will also continue to apply to 10 other steel categories for another two years on the basis of grounds raised by interested parties.

Trevelyan’s decision was previously welcomed by UK steel producers.

However, there are concerns that the safeguards could potentially go against World Trade Organization principles, with Lord Christopher Geidt citing the steel import tightening as one of the reasons for his recent resignation as Johnson’s ethics adviser.

At the G7 Summit, Johnson said there were “tough choices” to make on what action to take and the difficulty came in over whether it was possible to help the UK steel industry, while also staying within WTO obligations.

— Jacqueline Holman, Annalisa Villa

To reduce dependence on imports and make India self-reliant, the country’s coal ministry aims for coking coal production to reach 140 million tonnes through the fiscal year ending 31 March 2030 (FY30), Kallanish notes.

India produced 51.7mt of raw coking coal in FY22, up by 15% on-year against 44.8mt produced in FY21. To further enhance raw coking coal production, the ministry has in the last two years auctioned ten coking coal blocks to the private sector, with a peak-rated capacity of 22.5mt. Most of these blocks are expected to start production by FY25.

Additionally, the ministry has identified four other coking coal blocks. The Central Mine Planning and Design Institute (CMPDI) will meanwhile finalise geological reserves (GR) for four to six new coking coal blocks in the next two months. These blocks may be offered in subsequent rounds of auctions for the private sector to further step up domestic raw coking coal supply in the country, the ministry says.

Currently, India’s domestic raw coking coal washing capacity is 23m t/y. Coalfield India (CIL) is planning to set up and operationalise nine more new washeries with 30m t/y combined washing capacity. CIL would thus be able to supply about 15mt of washed coking coal to the steel sector, thereby reducing coking coal imports.

“There is a need to set up more washeries to enhance capacity to meet the fast-increasing demand for coking coal in the country,” says the coal ministry. “During FY22, CIL supplied 1.7mt of washed coking coal to the steel sector and has set a target of 3.45mt during FY23.”

Sayed Aameer India

NLMK Group is improving the quality of its steel offering with a zinc-aluminium-magnesium coating of increased resistance, the company says.

The firm says it carried out successful tests of rolled products with increased corrosion resistance with a paint and varnish coating. The results showed virtually zero impact of aggressive environments on the metal surface, it claims.

The launch of the new product in the market is scheduled for the first half of 2023, Kallanish notes.

Steel with a corrosion-resistant zinc-aluminium-magnesium coating has advantages over standard galvanized steel. It is recommended for use in medium and highly aggressive environments, for the production of light-weighted materials, girders, the frame of the supporting structures of partitions, the frame of floors and wall elements, NLMK observes.

In addition, steel with this anti-corrosion coating will be used as the basis for the production of polymer-coated rolled products. These products ensure the durability of the operation of buildings located in central Russia for at least 50 years, NLMK says.

NLMK has also improved the stability of galvanized steel by applying a thin layer of organic coating, providing a threefold increase in the resistance of the metal. 

The company also completed the modernisation of the APP-1 polymer coating unit. The unit with a capacity of 130,000 tonnes/year is designed to apply high-tech coatings with high performance characteristics to sheet up to 2mm thick and 1,600mm wide.

Earlier, NLMK said that Russian steel exports will fall further due to sanctions against the country following its invasion of Ukraine (see Kallanish passim). It expects exports of steel products from Russia to decline by 23% in 2022, with rolled products accounting for the bulk of the decline by 40-45%.

The steelmaker also expects that Russia will reduce this year steel production by more than 11 million tonnes, down by 15% on-year.

Svetoslav Abrossimov Bulgaria

Metinvest’s Pokrovske mine continues to produce coking coal and is currently operating four mining sites, the group’s chief executive, Yuri Ryzhenkov, said during a trip last week to the Donetsk region, where he visited the assets of Metinvest Pokrovskvugol.

“Today, we have proven sales channels and we also managed to find additional markets not only in Ukraine but also in other countries – Slovakia, Hungary, Poland,” the company tells Kallanish. “We are considering the possibility of cooperation with Western European plants.”

The company is ready to increase production and penetration rates, and make additional investments in the development and modernisation of the enterprise, Ryzhenkov added.

“We continue to work and understand that in the next 10-15 years our coal will be in demand, because it is too early to talk about clean technologies and green steel,” he concluded. “Although I am sure that the transition to green steel is inevitable, it will take time. Therefore, we intend to implement our plans for the development and modernisation of the Pokrovske mine.”

Earlier, Metinvest said it has reoriented its exports of steel products, due to the Russian military aggression against Ukraine, to the markets of Central and Eastern Europe (see Kallanish passim).

However, the group’s overall capacity utilisation has been reduced by more than 40% due to the loss of its Mariupol plants, logistical problems and other restrictions caused by the war.

Metinvest is also looking at options to produce more steel at its subsidiaries in the EU using Ukrainian commodities.

The company has asked steel buyers not to purchase steel products from Ilyich Steel and Azovstal that it says have been stolen by Russian forces from the port of Mariupol.

Svetoslav Abrossimov Bulgaria

Hubert Hunscheidt

Thyssenkrupp, ein deutscher Industriekonzern, und Tata Steel, ein Unternehmen mit Sitz in Indien, sind u. a. in der Herstellung und Lieferung von Erzeugnissen aus Kohlenstoff-Flachstahl und Elektrostahl tätig. Ihre Produktionsstandorte befinden sich in Deutschland bzw. im Vereinigten Königreich und in den Niederlanden. Die Unternehmen besitzen auch Endbearbeitungswerke in anderen Mitgliedstaaten.

Am 25. September 2018 meldeten die beiden Unternehmen ihr Vorhaben zur Übernahme der gemeinsamen Kontrolle über ein neu gegründetes Gemeinschaftsunternehmen nach der Fusionskontrollverordnung1 bei der Kommission an. Die Kommission war der Ansicht, dass der geplante Zusammenschluss ernsthafte Zweifel an seiner Vereinbarkeit mit dem Binnenmarkt aufwerfe und beschloss, eine eingehende Prüfung einzuleiten. Das Vorhaben betraf hauptsächlich metallbeschichtete und laminierte Verpackungsstahl-Erzeugnisse sowie
feuerverzinkte Stahlerzeugnisse, die in der Automobilindustrie verwendet werden.

Die Kommission nahm eine Mitteilung der Beschwerdepunkte an, mit der sie vorläufig zu dem Schluss gelangte, dass der geplante Zusammenschluss den wirksamen Wettbewerb in einem wesentlichen Teil des Binnenmarkts erheblich beinträchtigen würde. Nach einem Austausch mit den in Rede stehenden Unternehmen und der Übersendung von Auskunftsverlangen an eine Reihe von Marktteilnehmern, insbesondere Wettbewerber und Abnehmer, erklärte die Kommission mit Beschluss vom 11. Juni 20192 das Vorhaben für mit dem Binnenmarkt und dem Europäischen Wirtschaftsraum (EWR) unvereinbar.

Die Kommission war der Auffassung, dass das Vorhaben insbesondere wegen horizontaler nichtkoordinierter Effekte infolge des Wegfalls eines starken Wettbewerbsdrucks einen wirksamen Wettbewerb erheblich beeinträchtigen würde. Daher hätten sich die Abnehmer einer verringerten Zahl von Anbietern und höheren Preisen gegenüber gesehen. Nach Ansicht der Kommission räumten die von thyssenkrupp und Tata Steel angebotenen Abhilfemaßnahmen die zum Ausdruck gebrachten Wettbewerbsbedenken nicht vollständig und dauerhaft aus. Daraufhin erhob thyssenkrupp beim Gericht der Europäischen Union Klage auf Nichtigerklärung des Beschlusses.

In seinem heutigen Urteil weist das Gericht das gesamte Vorbringen des Unternehmens zurück und bestätigt den Beschluss der Kommission.

Quelle: Europäischer Gerichtshof / Foto: Fotolia

The UK’s Trade Remedies Authority has begun reviews of existing antidumping and anti-subsidy measures on two steel products and an investigation on whether to suspend antidumping measures for Ukraine.

The TRA said it initiated on June 24 a transition review into antidumping measures on hot rolled flat and coiled steel from Russia, Ukraine, Brazil and Iran.

It also opened a transition review into anti-subsidy measures on imports of stainless steel bars and rods from India, it said.

The TRA said the review is needed to ensure the antidumping and anti-subsidy measures the country inherited from the EU are still suitable for the UK’s needs.

HRFC steel is used primarily in the mechanical and electrical engineering, construction and automobile sectors.

The measures on stainless steel bars and rods cover those used across various industries, including the automotive, aerospace and food processing industries. These products can be easily cut and machined and are often used to manufacture tools, machine parts and components.

The period of investigation for both transition reviews will be April 1, 2021 to March 31, 2022, while the injury period will be April 1, 2018 to March 31, 2022.

Suspension investigation

In addition to the initiation of the transition reviews, the TRA has opened an investigation into whether to suspend antidumping measures on HRFC from Ukraine.

“Following a request from the government of Ukraine we will investigate whether a suspension of measures on certain Ukrainian steel products is justified because of changed market conditions after the Russian invasion,” TRA CEO Oliver Griffiths said in a statement.

S&P Global Commodity Insights assessed DDP West Midlands UK hot-rolled coil at GBP800/mt ($1,080/mt) on June 24, down GBP75, or 8.5%, week on week.

— Ekaterina Bouckley

Suppliers were heard to be withholding offers June 24, preferring to negotiate with buyers on receipt of firm bids, though ready to grant additional discounts in order to secure volumes.

Platts assessed hot-rolled coil down Eur5/mt June 24 at Eur855/mt ex-works Ruhr.

In the Northern market, price indications on tradable value were heard on a range of Eur850-860/mt ex-works Ruhr, from both buy- and sell-side sources. A service center source reported offers at Eur860/mt ex-works Ruhr, alongside a lower offer from the Benelux region at Eur830/mt ex-works Northern Europe.

“Demand remains very poor,” a trader source said. “Mills are begging for orders and aim to reduce production as much as possible.”

Alongside the idling of blast furnaces by ArcelorMittal, US Steel Kosice reportedly mothballed the smallest of their three blast furnaces, in line with source expectations of further production cuts for the near term.

Production cuts have been repeatedly stressed by sources as necessary to match output levels to currently cratered demand.

In the South, prices were stable on the day, assessed at Eur790/mt ex-works Italy, according to S&P Global Commodity Insights data.

— Benjamin Steven, Maria Tanatar

The Defense Acquisition Regulations System and the US Department of Defense have received a final rule amending President Joe Biden’s executive order for maximizing use of American-made goods, products, and materials – including steel.

According to the executive order, a product is considered to be foreign if its components consist of greater than 45% foreign materials. However, iron and steel products are foreign if the cost of iron and steel equals more than 5% of the cost of all components. The rule is designed to strengthen domestic preference.

The analysis of public comments revealed responders fall on all sides. Some seek specific waivers, others feel their procurements are out of the scope of the executive order, and still others are greatly in favour of the order and show support for having more Buy American procurements in motion.

By some accounts, the federal market for iron has already undergone significant retooling to meet the demand increases to come from the department.

The department ultimately decided to uphold their initial assessment that the rule on the executive order is primarily a positive force and that cost impacts are not significant.

During the American Iron and Steel Institute conference attended by Kallanish in Washington, DC, on 25 May, the director of the Made In America department Celeste Drake suggested that steel producers be involved in the roll-out of the procedures for their industry. She explained new policies around limiting the number of waivers the office was willing to permit.

The latest ruling appears to be aligned with her message about integrating the use of American steel in federal departments.

Kristen DiLandro USA