EU to investigate Turkish, Russian HDG
The European Commission is expected to launch an anti-dumping probe into Turkish and Russian hot-dipped galvanised steel imports, following a petition from producers, according to market participants.
European steel association Eurofer refused to comment, but multiple participants said they expect the move because HDG imports from the two countries have risen amid a shortage of material in the bloc.
Turkish imports hit 916,600t in 2020, up from 692,700t in 2019, while Russian receipts increased to 311,900t from 261,900t. In the first quarter of 2021, Russian imports rose by 41pc on the year to 114,600t, and Turkish imports by 70pc to 315,400t. The rise could reflect scarce EU supply, which has led to sharp price increases — ArcelorMittal has been targeting €1,320/t since late May — as well as the imposition of dumping duties on Turkish and Russian HRC.
"The product concerned is defined as flat-rolled products of iron or alloy steel or non-alloy steel; plated or coated by hot-dip galvanisation with zinc and/or aluminium and/or magnesium, whether or not alloyed with silicon; chemically passivated; with or without any additional surface treatment such as oiling or sealing; containing by weight not more than 0.5pc of carbon, not more than 1.1pc of aluminium, not more than 0.12pc of niobium, not more than 0.17pc of titanium and not more than 0.15pc of vanadium; presented in coils, cut-to-length sheets and narrow strips originating in Turkey and Russia. The following products are excluded: (i) of stainless steel, of silicon-electrical steel, and of high-speed steel, and (ii) not further worked than hot-rolled or cold-rolled (cold-reduced)," according to a letter to sellers seen by Argus. Turkish mills have recently been able to take advantage of competitive Chinese substrate, which is also subject to duties in Europe.
Market participants expect EU HDG prices to surge now, with traders already preparing.
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Ge buyers seek new supply, alternatives as demand rises
Ge buyers seek new supply, alternatives as demand rises
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Tower expects the utilisation rate of its Fab 3 facility to hit full capacity in the third quarter, up from 55pc in the second quarter in response. Beyond AI and data communications, automotive manufacturers are exploring the use of silicon photonics in light detection and ranging (LiDAR), the company said. As advanced driver-assistance systems (ADAS) become standard and autonomous vehicles are rolled out, consumption of germanium in infrared optics for thermal imaging cameras and night vision devices is increasing. But consumers are concerned about security of supply. The US increased its imports of germanium metal and dioxide in 2023 by around 20pc year on year to 38t, according to the US Geological Survey. Exports from China, the world's largest germanium producer and exporter, dropped sharply after the government introduced export controls in August 2023. Given the use of germanium in optical components, power devices and sensors, the US Department of Defense (DoD) is working with suppliers to ensure it has sustainable access. The Defense Logistics Agency has a partnership with LightPath Technologies to replace germanium in certain DoD applications. LightPath is working to reduce the amount of optics it produces from germanium, to reduce the risk of supply chain disruption and help customers convert their systems to use optics made from its Black Diamond chalcogenide materials, the company's president and chief executive, Sam Rubin, said in its second-quarter earnings call. LightPath's infrared component sales fell by $1.7mn, or 36pc, primarily after its largest customer did not renew a large annual contract for germanium-based products. The company last week announced a $500,000 initial production order for thermal imaging assemblies using Black Diamond from a new tier-1 defence customer. 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Mining exploration companies such as Anson Resources and EV Resources in Australia and Cantex Mine Development in Canada are pursuing projects with germanium content for potential production. But the fastest way to do so is by processing tailings to extract germanium. For instance, Hong Kong Sinomine Rare Metals, which has acquired the Tsumeb copper smelter and polymetallic tailings pile in Namibia, recently estimated that the tailings contain 746.21t of germanium metal. The company plans to add a germanium-zinc smelting production line to the copper smelting line, to commercialise output "as soon as possible". Earlier this year, Belgium's Umicore signed a long-term agreement with STL1, subsidiary of Democratic Republic of Congo state-owned mining firm Gecamines, to optimise germanium production at STL's processing facility commissioned in 2023 at the Big Hill tailings site in Lubumbashi. STL's germanium previously entered the market through third-party refiners outside the country. 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CME N.EU HRC futures rally on China stimulus
CME N.EU HRC futures rally on China stimulus
London, 30 September (Argus) — North European hot-rolled coil futures prices rallied on the CME Group's contract today, following increases in the Chinese market. In the brokered market, November rose by €35/t from the 27 September settlement to €630/t in a 2,500t trade, while January traded at €650/t for 5,000t, up by €20/t from the 27 September settlement. October was up by €15/t at €580/t, at a steep premium to Argus ' underlying index of €520/t on 27 September. December also rose by €20/t to €645/t. On screen November and December both traded €35/t higher, while March 2025 rose by €33/t to €670/t. Physical market participants attributed the increases to China's rally, and the European Commission confirming changes to how imports are registered, potentially opening the door for retroactive definitive duties in the investigation against Egypt, Japan, India and Vietnam. Eurofer is also lobbying for more import measures to reduce the effects of global overcapacity. The strong futures contango led some derivatives participants to think the first quarter was overpriced, given the structural difficulties still facing the European market, such as Germany's economic slowdown and lower demand from key steel-using industries, such as automakers. "Will Germany really be fixed by January," one source said, suggesting the cost of carry was much lower than the premium in the futures market. In light of the flurry of trading, September was a new record month for the CME's contract, which launched in March 2020. As of 11:21 in London, just over 218,000t had traded on September, up from the previous record of 205,860t reached in January 2023. More volume has traded this year than last year in January-September — around 923,000t has traded this year, compared with around 913,000t in the same period of 2023. By Colin Richardson Send comments and request more information at feedback@argusmedia.com Copyright © 2024. Argus Media group . All rights reserved.
Taiwan's ferrous scrap imports fall 6pc on year in Aug
Taiwan's ferrous scrap imports fall 6pc on year in Aug
Singapore, 30 September (Argus) — Taiwan's ferrous scrap imports totalled 215,245t in August, marking a 6.2pc decrease year-on-year and a 1.8pc drop month-on-month. The reduced import volume was because of buyers avoiding Japan-origin scrap because of a drop in US containerised scrap price from the US west coast. Weak domestic steel demand in Taiwan and low-cost billet offers from China led buyers to limit their ferrous scrap imports. Imports from the US west coast increased by 10.2pc on year and 5.3pc on month as buyers took advantage of falling prices and sought more US containerised scrap. The US accounted for 47.7pc of Taiwan's total ferrous scrap imports in August. The Argus HMS 1/2 80:20 containerised scrap from the US west coast started at a high of $345/t at the beginning of August but dropped to $325/t by 30 August. Scrap imports from Japan fell by 67.5pc from a year earlier to 22,502t in August. The decrease was because the Japanese yen surged, reaching as high as ¥146.17:$1 on 31 August, up from ¥149.20: $1 at the start of the month. A stronger yen meant that buyers had to spend more US dollars for trades, as deals are typically closed in dollars. The reduced imported scrap volumes reflected weak steel fundamentals and expectations of a prolonged downturn during the summer seasonal lull from May to September. An influx of cheap billets from China significantly impacted scrap demand in August. Billet prices were as low as $445-450/t cfr Taiwan in mid-August, trade sources said. Imported ferrous scrap may continue to decline in the coming months if domestic steel demand does not show significant signs of improvement, trade sources said. Some sellers are optimistic about rising scrap prices and volume in the fourth quarter of the year, as slower collection efforts and year-end celebrations usually mean that mills will look to restock more tonnages before then. Taiwan Ferrous Scrap Imports (t) Country Aug % ± vs Jul % ± vs Aug'23 Jan-Aug % ± y-o-y US 102,740 5.31 10.21 856,836 1.85 Japan 22,502 -42.33 -67.48 444,091 -31.64 Australia 4,714 -28.15 -60.99 74,248 -55.62 Dominican Republic 21,952 39.40 57.92 133,572 -17.96 Others 63,338 5.18 54.30 527,058 16.30 Total 215,245 -1.76 -6.19 2,035,805 -10.48 Source: Taiwan customs Send comments and request more information at feedback@argusmedia.com Copyright © 2024. Argus Media group . All rights reserved.
Overcapacity threatens EU decarbonisation: Eurofer
Overcapacity threatens EU decarbonisation: Eurofer
London, 27 September (Argus) — European steelmakers' decarbonisation efforts are at risk because of low-priced imports, according to European steel association Eurofer. "We need to stop the spillover and the impact of that spillover from global overcapacity," Axel Eggert, director general of Eurofer, told Argus , suggesting low-priced imports are "pushing down any possibility for EU steelmakers to generate the margins they need to fund the green transition". "If you don't generate the return you need, you will be unable to make the investments you need. Then even climate targets are at risk. This has to be addressed," he said. With demand declining, particularly in China, and new production being installed in the coming years — in particular in southeast Asia, north Africa and the Middle East — the overcapacity issue will only worsen, Eggert said. Eurofer has been in dialogue with the European Commission, which it says is aware of the problem, and has asked for a structural solution, such as a comprehensive global tariff-like system. It has not requested a Section 232 style tariff, he said. While the EU is not known for the speed of its decision-making and implementation, Eggert said the sanctions on Russia showed it can act quickly when needed. "We do not know what the commission will do. They are aware of the problem, but they need to act fast. We cannot wait a year. That is the challenge," he said. The liberalisation of the safeguard means about 120pc of the 2015-17 import volumes can come to the EU without paying any tariffs, and the impact of this penetration is worsened by demand depression within the EU. The 25pc tariff, even where applicable, is potentially insufficient for some countries too, Eggert said, alluding to the fact that China recently offered into the EU despite dumping and countervailing duties. China could export 100mn t this year, he said, suggesting the country's mills are still exporting despite making losses. Asked about Europe's own overcapacity, Eggert said it is the only major region to have reduced capacity, by about 26mn t in the past 15 years, leading to a worsening trade deficit. "EU steelmakers are continuing to adapt capacity downwards, but we are reaching a point at which further steel capacity reductions will erode the resilience and strategic autonomy of the EU, let alone the negative impact on hundreds of thousands of quality jobs in the EU's steel value chain," he said. By Colin Richardson Send comments and request more information at feedback@argusmedia.com Copyright © 2024. Argus Media group . All rights reserved.
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