S Korea to invest over $8bn to foster EV export sector

Market: Battery materials, Metals
26/09/23

South Korea's trade, industry and energy ministry (Motie) plans to "spare no support" to foster electric vehicles (EVs) as a key export engine, with 11.1 trillion won ($8.22bn) to be invested in the sector.

Motie will invest W2 trillion in research and development in the automobile sector over the next five years to support its "timely transition to future vehicles", it said on 26 September, adding that W9.1 trillion will be provided to finance conversion to "future cars".

Motie also hopes to expand ‘eco-friendly' vehicle export bases in northern Europe and Japan to support the inclusion of small and medium-sized EV part companies in global supply chains.

The country's automobile exports have remained strong and achieved double-digit year-on-year growth rates for 14 consecutive months in August, with exports surpassing 300,000 units in August and EVs accounting for one-third of total exports.

"In the future, the eco-friendly market will continue to grow thanks to the global carbon neutrality policies such as the US IRA and the withdrawal of internal combustion vehicles in the EU," Motie minister Bang Moon-kyu said. "The electric vehicle industry is a key industry that creates demand for various high-tech industries such as secondary batteries and semiconductors." Bang took over as the Motie minister from previous minister Lee Chang-yang in September.

South Korea was the largest importer of Chinese lithium-nickel-cobalt-manganese oxide (NCM) in January-August, making up 64pc of China's total exports of 67,252t. China also exported 125,771t of NCM precursor over January-August, with about 99.5pc exports going to South Korea. NCM and NCM precursors are used in EV batteries.

The country has been prioritising spending on measures to bolster its economy, such as higher funding allocated to green growth engines in its environment ministry budget, as South Korea continues to face economic uncertainties.

Separately, domestic producer Hyundai Steel decided on 26 September to invest W14bn to set up a steel pipe subsidiary in October. This could stimulate the firm's hot-rolled coil (HRC) import demand as HRC is used to produce steel pipes, a Chinese mill manager said.

By Tng Yong Li

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12/11/24

EU steelmakers ask for scrap export curbs

London, 12 November (Argus) — European steel producers association Eurofer continues to lobby the European Commission to curb scrap exports as the industry looks to decarbonise. On 12 November, Eurofer reiterated its view that the commission "recognise steel scrap as a strategic secondary raw material under the critical Raw Material Act, ensure the robust implementation and effective enforcement of the revised EU Waste Shipment Regulation to ensure compliance with the EU environmental standards in third countries and avoid circumvention, while securing a sustainable and diversified raw materials supply by leveraging bilateral Free Trade Agreements, granting reciprocal market access and eliminating illegal export bans and other distortions." EU scrap consumption is due to increase significantly in the coming years. "Scrap exports to third countries without comparable environmental and social standards [therefore] need to be restricted to ensure that the use of ferrous scrap generated in the EU contributes to sustainability objectives aligned with the EU ones," Eurofer said. The EU has long been a net exporter of ferrous scrap, with outflows of the material standing just shy of 11mn t in the first eight months of this year, customs figures show. Last year the EU exported 17.67mn t of ferrous scrap, a 5pc rise on the year. The bloc's trade has always been heavily focused on Turkey, the world's largest importer of ferrous scrap, with annual trade ranging from over half to two-thirds of total exported volumes in the past five years. Turkey, with around three-quarters of steel production based on electric arc furnace route, is heavily reliant on European-origin material. Turkey's share of EU exports increased in recent years after the UK left the EU, but the share of shipments from the bloc started rising from the second half of the mid-2010s, when Russia, another major ferrous scrap supplier to Turkey, started restricting exports. Russian exports of scrap to Turkey fell from around 2.5mn t in 2018, to 1.9mn t in 2019 and 2021 and to just over 400,000t in 2022-24. The EU's major trading partners for scrap include Egypt, India and Pakistan, all of which are third countries to the EU and non-OECD countries whose import volumes have been increasing as Asia continued to grow its steelmaking capacities, mostly through the IF (induction furnace) route. The EU's intention to restrict scrap exports has been deeply unsettling for the many developing markets' representatives, as much as its movement towards the implementation of CBAM (Carbon Border Adjustment Mechanism), which will reduce the possibility of exports to the EU from countries where steelmaking processes and carbon emissions are not compliant with the EU's stricter standards. By Corey Aunger and Katya Ourakova Annual EU-27 ferrous scrap exports metric tonnes Country 2020 2021 2022 2023 2024 Turkey 11,247,281.0 12,676,091.0 10,327,403.0 10,088,491.0 6,826,876.0 Egypt 1,076,930.0 1,810,866.0 1,431,831.0 1,570,352.0 1,237,722.0 India 443,130.0 294,994.0 1,108,881.0 1,906,608.0 576,008.0 Pakistan 853,178.0 727,466.0 700,879.0 731,182.0 371,943.0 Switzerland 455,034.0 511,098.0 463,440.0 339,894.0 355,709.0 Norway 314,627.0 294,956.0 396,933.0 451,873.0 309,299.0 Morocco 197,803.0 329,901.0 556,417.0 442,498.0 258,630.0 UK 361,741.0 307,281.0 307,173.0 275,125.0 203,786.0 US 622,523.0 574,264.0 316,077.0 694,507.0 182,064.0 Moldova (Rep. of) 251,184.0 344,609.0 79,788.0 192,964.0 179,579.0 Republic of North Macedonia 74,951.0 106,400.0 112,176.0 165,404.0 115,626.0 Bangladesh 107,611.0 149,570.0 700,108.0 388,936.0 91,410.0 Total 16,371,459 18,542,680 16,843,989 17,674,602 10,822,245 2024 data for January to August — Customs and Eurostat data Turkey's total and European scrap imports, 2010-24 Send comments and request more information at feedback@argusmedia.com Copyright © 2024. Argus Media group . All rights reserved.

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Japan’s scrap export tender slips in November

12/11/24

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12/11/24

Japan’s scrap export tender slips in November

Shanghai, 12 November (Argus) — The monthly Japanese scrap dealer co-operative Kanto Tetsugen's export tender registered a lower result in November driven by a softening seaborne market. The tender for 15,000t of H2 scrap settled at ¥45,180/t fas today, marking a decline of ¥500/t from October. This set the fob price at an equivalent of ¥46,180/t, or $300/t. The outcome was higher than the initial expectation of ¥44,000-44,500/t fas. Despite the result showing only a marginal decline, the dollar-equivalent price fell by $15/t to $300/t fob Japan because of the depreciation of the Japanese yen. The yen fell by 3.64pc from 9 October to ¥153.64:$1 today. The tender cargo will be shipped to Vietnam, trade sources said. Export negotiations to Vietnam have been limited in recent weeks as sellers are holding back because of a vessel shortage. Participating in the Kanto tender is the optimal choice for Vietnamese buyers if they have restocking demand, a local trader said. The cfr price, including the quality premium for tender cargo, should be $340-345/t. The Argus H2 fob Japan assessment was at ¥43,600/t on 11 November, and the October monthly average was ¥43,882/t fob Japan. The H2 collection price at Tokyo Steel's Utsunomiya plant was ¥41,500/t delivered to the mill. Traders expect Tokyo Steel to increase the collection price to align with the higher price in the seaborne market. Send comments and request more information at feedback@argusmedia.com Copyright © 2024. Argus Media group . All rights reserved.

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Slow H2 progress risks shipping, steel net-zero goals

11/11/24

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11/11/24

Slow H2 progress risks shipping, steel net-zero goals

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Peru bets on trade ties with Asia as Apec starts

11/11/24

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11/11/24

Peru bets on trade ties with Asia as Apec starts

Lima, 11 November (Argus) — Heads of 16 countries are in Peru this week to kick off the Asia-Pacific Economic Cooperation's (Apec) annual Leaders Week, as government officials in Lima look to grow their partnerships with Asia while staving off potentially disruptive strikes. The summit comes at a fragile time for Peru, where President Dina Boluarte has a historically low presidential approval rate of 4pc and bus drivers and small business owners are demanding protections from a wave of extortion. The event begins today with meetings among senior officials of the 21 member countries and closes on 16 November with the leaders' meetings, the pinnacle Apec event. With the confirmed arrival of Chinese president Xi Jinping later this week, the summit is likely to strengthen ties between Peru and Asia, amid US concerns of China's growing influence in Latin America. US president Joe Biden is also expected to travel to Lima from 14-16 November, according to the White House. He is then slated to go to Manaus and Rio de Janeiro to meet with Brazilian president Luiz Inacio Lula Da Silva. This week is also the scheduled ribbon-cutting of the Chancay megaport, a $1.3bn commercial hub north of Lima that will cut the transport time between Latin America and Asia from 35 days to 25 days. Cosco Shipping, the Chinese state-owned port operating company, owns 60pc of the project and the rest is owned by Peru mining company Volcan. It aims to become the main commercial port in the Pacific for neighboring Brazil and has a 17.8-meter depth, the greatest in Latin America. While the port will be inaugurated on 14 November, Cosco Shipping has said operations are expected to begin in early 2025. Peru's priorities for Apec include trade investments and the energy transition, with a focus on its critical mining sector — and workers' transition to the formal economy in Peru, where the informality rate is about 73pc. These goals extend to the CEO Summit, which is running simultaneously and will host hundreds of business leaders from Asia looking to invest in Peru's energy and mining sectors. Angel Manero, Peru's agriculture minister, said last week the government expects to approve sanitary protocols with China to export nuts, with the potential of expanding to meat imports, according to the official gazette. He added there are talks with China about attracting investments through the creation of Special Economic Zones. Peru last hosted the Apec in 2016. This time, workers in Lima — led by bus drivers' unions — have vowed a three-day strike during Apec to call attention to a string of killings they say are linked to resistance to extortion. Among their main asks is repealing a recent law approved by congress that they say weakens prosecution of organized crime by, among other things, changing its definition to exclude crimes of extortion. Prime Minister Gustavo Adrianzén has repeatedly asked workers not to strike to avoid "a bad show" during the high-level meetings. By Bianca Padró Ocasio Send comments and request more information at feedback@argusmedia.com Copyright © 2024. Argus Media group . All rights reserved.

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UK's Liberty Speciality Steel could go insolvent

11/11/24

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11/11/24

UK's Liberty Speciality Steel could go insolvent

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