European automotive sector plans recovery

Spanish Market: Metals, Oil products
06/05/20

The European automotive sector has proposed a plan to help restart the crippled industry after Covid-19 lockdown restrictions are eased, following closures amid the pandemic and new car sales all but vanishing in April.

EU-wide production losses since mid March, as a result of automotive factory shutdowns, have reached 2.3mn vehicles, according to the European Automobile Manufacturers' Association (ACEA).

New car sales have also fallen drastically. The UK automotive market in April experienced its worst ever month as the pandemic closed showrooms and dealerships across the country, causing new car sales to fall by 97.3pc on the year. New car sales in France fell by 88.8pc on the year in April and the Italian market fell by 97.5pc from last year.

The fall in automotive activity has impacted industries across Europe, with aluminium alloy producers closing alongside their automotive customers, while base oil demand has also been hit hard.

Targeting decision makers at EU and national levels, the industry's action plan has been signed by three other European associations alongside the ACEA, comprising the European Association of Automotive Suppliers, the European Tyre and Rubber Manufacturers Association and CECRA, an umbrella organisation regrouping national automotive trade associations and European brand dealer councils.

Among the plan's 25 suggested actions are calls to issue harmonised guidance on health and safety precautions for the workplace and an exemption on the transport of goods from border closures, as well as temporary flexibilities in competition rules, immediate renewal schemes for all vehicle categories across the EU and the postponement of all non-essential public consultations for at least two months.

"It is now crucial to bring the entire automotive value chain back into motion. We need a co-ordinated relaunch of industrial and retail activity, with maintained liquidity for businesses," ACEA director general Eric-Mark Huitema said. "Targeted measures will need to be taken to trigger demand and investment. Demand stimulus will boost the utilisation of our manufacturing capacity, safeguarding jobs and investments."

Jethro Wookey

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03/01/25

Nippon Steel condemns Biden move to block US Steel bid

Tokyo, 4 January (Argus) — Japanese firm Nippon Steel has condemned President Joe Biden's decision to block its proposed $15bn acquisition of US Steel citing national security concerns arising from a Japanese company owning a major US steelmaker. The US president has "sacrificed the future of American steelworkers for his own political agenda", Nippon Steel said. "It is clear that the CFIUS (committee on foreign investment in the United States) process was deeply corrupted by politics and the outcome was pre-determined to satisfy the political objectives of the Biden administration," Nippon Steel added. The company pledged to save the deal by "taking all appropriate action to protect our legal rights". Nippon Steel warned that Biden's decision sends a chilling message to any company based in a US-allied country contemplating significant investment in the US. "It is shocking and deeply troubling that the US government would reject a pro-competitive transaction that advances US interests and treat an ally like Japan in this way," the company said. Biden's decision is hard to understand and regrettable, especially given that it was made after consideration of US national security, Japan's trade and industry minister, Yoji Muto, said. Tokyo will seek to clarify with the Biden administration the decision-making process followed by the CFIUS, Muto added. Japan's trade and industry ministry (Meti) agrees with Nippon Steel that the transaction would contribute to sustaining steel production capacity and employment in the US economy, Muto said, adding that the acquisition would be of mutual benefit. "The deal is to promote collaboration on advanced technologies and increase the competitiveness of the US and the Japanese steel industry," he added. The Japanese government must take this matter seriously, Muto reiterated, given growing concern among Japanese industries regarding the future US-Japan investment climate. Japanese business federation Keidanren in September wrote an open letter to US treasury secretary Janet Yellen, who chairs the CFIUS, expressing concern about political pressure being brought to bear on the committee. By Yusuke Maekawa Send comments and request more information at feedback@argusmedia.com Copyright © 2025. Argus Media group . All rights reserved.

Biden blocks Nippon Steel’s bid for US Steel

03/01/25

Biden blocks Nippon Steel’s bid for US Steel

Pittsburgh, 3 January (Argus) — President Joe Biden blocked Nippon Steel's proposed $15bn acquisition of US Steel today citing national security concerns with a Japanese company owning a major US steelmaker. Biden said evidence suggests that Nippon Steel "might take action that threatens to impair the national security of the US" if it owned US Steel. Nippon Steel, based in Tokyo, proposed buying US Steel in December 2023, outbidding other suitors, including US steelmaker Cleveland-Cliffs. US Steel corporate leadership said Nippon's investment would be the best way forward for the Pennsylvania company's aging integrated steel mills in Pittsburgh and northern Indiana. The United Steelworkers labor union opposed the sale to Nippon from the outset. US Steel shareholders approved the acquisition last year, but the merger became a political issue during the presidential election, which centered around Pennsylvania's electoral votes. Both Biden and president-elect Donald Trump vowed to block the sale of US Steel, which is among the top four US steelmakers, but no longer the powerhouse it was in the 20th century. Biden's move could have broader implications for foreign investment, in part because Japan is a staunch US ally in Asia. Nippon Steel did not immediately respond to a request for comment on its plans for the deal. Biden's statement today said Nippon must abandon the deal within 30 days. By James Marshall Send comments and request more information at feedback@argusmedia.com Copyright © 2025. Argus Media group . All rights reserved.

Western RE refining projects attempt 2025 push

03/01/25

Western RE refining projects attempt 2025 push

London, 3 January (Argus) — Attempts to establish commercial-scale rare earth separation and processing outside China are growing in number and progressing gradually with a view to ramping up output over the next two years. Mineral resources developers are scrambling to reassess and upgrade their estimates of mineable rare earth element (REE) content as western governments attempt to encourage producers to establish production closer to home. And new efforts to develop high-volume processing capacity outside China — which currently accounts for more than 80pc of global refining — are emerging. Western countries are well behind China in advancing technical processes to refine REs from raw materials, as they seek alternatives to the highly polluting solvent extraction process. But with China banning the export of RE extraction and separation technologies in December 2023, as well as exports to the US of key electronic metals in December 2024, the impetus is growing to come up with viable Western production. RE oxides are used in the manufacturing of permanent magnets for electric vehicle (EV) motors, wind turbines and electronics, as well as batteries, lasers, metal alloys, medical devices and military equipment. Given that latter application, the US Department of Defense (DoD) has awarded more than $439mn in financing since 2020 to support a new domestic supply chain, from the separation and refining of materials mined in the US to downstream production of magnets. In a broader trend towards "friendshoring" of critical material supply, the DoD considers Canada, Australia and the UK as domestic suppliers. In December alone, several western companies announced progress in their plans to build production capacity. Northeast Wyoming in the US has one of the highest-grade deposits in North America, which firms such as Wyoming Rare USA and Rare Element Resources are looking to develop. Other projects in the US include ReElement Technologies in Indiana, Rainbow Rare Earths in Florida and Lynas in Texas. Energy Fuels in Utah and Phoenix Tailings in Massachusetts are in production, ramping up volumes to meet market demand. These facilities would spread the supply chain across the US, expanding from MP Materials in California, which has previously been the only commercial-scale facility in the country. In Canada, developer Ucore Rare Metals in December received a payment of $1.8mn from the US DoD, part of a $4mn award to conduct REE separation work at the company's RapidSX commercial demonstration facility in Kingston, Ontario. Ucore is also developing its flagship project, the Louisiana Strategic Metals Complex, in a foreign trade zone it said will provide an advantage if the incoming Trump administration implements tariffs and other trade measures. Reflecting the competition between countries for limited processing capacity, Ucore said it intends to continue the DoD project in the first half of 2025 and then turn to completing its C$4.28mn light REE demonstration project with the Government of Canada. Canada is home to one of the first in the wave of new western producers, as the government-backed Saskatchewan Research Council (SRC) started producing neodymium-praseodymium (NdPr) metal during the summer. Like the US, European countries are also targeting domestic production in a bid to secure their supply chains. Projects include the expansion of Nd and NdPr processing capacity at UK-based Less Common Metals (LCM), the addition of NdPr production at Belgian chemical group Solvay at its plant in France in 2025 and French consultancy Carestar's plan to start production in 2026 of RE oxides from mining concentrates and, later, recycled magnets. REEtec in Norway plans to start a commercial NdPr plant in 2025 and Swedish state-owned LKAB plans to start an RE oxide demonstration plant by the end of 2026. These initiatives are in line with plans across Europe to increase EV manufacturing and renewable energy. Rare earth mining projects in Africa and Australia are largely targeting supply deals or integrated production in Asia or North America. Miners in Brazil, such as Aclara, are also planning integrated production by developing separation plants close to demand in the US and Europe. By Nicole Willing Key projects outside of China Producer Location Production status Refined rare earth elements American Resources Noblesville, Indiana, US In development, refining achieved at validation facility Terbium (Tb), Dysprosium (Dy), Neodymium (Nd), Praseodymium (Pr) Lynas Corporation Kuantan, Malaysia; Kalgoorlie, Australia; Texas, US Operational (Malaysia, Australia); In development (Texas) Dy, Tb, NdPr, Samarium (Sm), Europium (Eu), Gadolinium (Gd), Holmium (Ho) Phoenix Tailings Burlington, Massachusetts, US Operational (heavy and light rare earth metals) Dy, Tb, NdPr Rare Element Resources Upton, Wyoming, US Demonstration plant operational Light and heavy REs Energy Fuels White Mesa Mill, Utah, US Operational, Phase 1 commissioned NdPr; Dy, Tb to come Ucore Rare Metals Kingston, Ontario, Canada; Alexandria, Louisiana, US Demonstration plant operational; Louisiana facility planned for 2025 start Light and heavy REs Aclara Resources Goiás, Brazil; Bio-Bio, Chile; US (separation plant) In development Heavy REs (Dy, Tb); NdPr in US Ionic Rare Earths Belfast, UK; Minas Gerais, Brazil In development Recycled oxides (e.g., NdPr, Dy, Tb) Pensana Plc Saltend, UK; Longonjo, Angola Under construction Mixed RE carbonate, magnet metals (NdPr, Dy, Tb) Saskatchewan Research Council (SRC) Saskatchewan, Canada Operational (commercial scale) NdPr Iluka Resources Eneabba, Western Australia Under construction RE oxides Solvay La Rochelle, France Operational; capacity expansion in 2025 Nd/NdPr to come Less Common Metals Ellesmere Port, Cheshire, UK Operational; Nd/NdPr capacity expansion ongoing Nd, NdPr, Dy, Ferro-Dysprosium (DyFe), Tb, Samarium-Cobalt (SmCo) alloy LKAB Lulea, Sweden Demonstration plant planned to start operations by end 2026 RE oxides Carester Lacq, France Production planned for 2026 Heavy REs (Dy, Tb) MP Materials Mountain Pass, California, US; Fort Worth, Texas, US Mountain Pass operational, Forth Worth in commissioning NdPr, cerium, lanthanum and heavy rare earth concentrate; metals, alloys and finished magnets at Fort Worth Rainbow Rare Earths Lakeland, Florida, US Separation pilot plant in testing Nd and Pr initially; Dy, Tb, then Sm, Eu, Gd in future development Australian Strategic Materials Ochang, South Korea Operational Nd metal and alloy USA Rare Earth Stillwater, Oklahoma In development Heavy rare earths Neo Performance Materials Estonia Operational NdPr Mkango Resources Pulawy, Poland Separation plant planned NdPr oxide, heavy REs REEtec Norway Commercial plant planned for 2025 NdPr Send comments and request more information at feedback@argusmedia.com Copyright © 2025. Argus Media group . All rights reserved.

EU HRC imports top 500,000t at start of 2025

03/01/25

EU HRC imports top 500,000t at start of 2025

London, 3 January (Argus) — At least 530,000t of hot-rolled coils (HRC) have been put forward for customs clearance in the EU as of yesterday, according to newly-reset safeguard quotas data tracked by Argus . This includes 181,874t of Japanese and 150,920t of Vietnamese material. Each country has a duty-free allowance of 138,766t per quarter, which indicates a pro-rata safeguard duty will be payable. It is not yet clear if these are the final volumes, as the new year holidays could be skewing the availability of some customs data, while buyers in some countries such as Italy have the possibility to cancel their custom clearance, which they have done regularly in the past. However some may be less inclined to do so this quarter, given the ongoing anti-dumping investigation in the bloc on Japan, Vietnam, India and Egypt, which market participants expect will result in retroactive tariffs. The awaiting allocation volume for Egypt stands at 76,143t, and no HRC is pending clearance from India. Meanwhile, 111,848t of Taiwanese material have been put forward for import. January imports will most likely be higher than November and December, as has become the norm in the first month of a new quarter, but they are on track to be lower than in October , when comparing customs clearance volumes then. As of 1 October, 875,339t were awaiting allocation. EU import data, published by Argus , further shows that over 200,000t from Vietnam, Japan and Taiwan were ultimately pulled back from customs clearance in October. Despite this, ramped up Turkish and Ukrainian imports later on in the month, and some additional volumes from South Korea, Serbia, Australia and Indonesia, brought the overall October arrivals to 1.2mn t. By Lora Stoyanova EU HRC custom clearance as of 2 January* t Awaiting allocation Quota allocation Turkey 7,832 464,844 India 0 295,145 South Korea 1,175 184,310 UK 20 154,182 Serbia 70 163,621 Others Egypt 76,143 138,766 Vietnam 150,920 138,766 Japan 181,874 138,766 Taiwan 111,848 138,766 Australia 0 138,766 Switzerland 0 138,766 US 0 138,766 Libya 0 138,766 Canada 0 138,766 - European Commission * Pending final clearance volumes Send comments and request more information at feedback@argusmedia.com Copyright © 2025. Argus Media group . All rights reserved.

Viewpoint: India bitumen demand growth prospects mixed

03/01/25

Viewpoint: India bitumen demand growth prospects mixed

Singapore, 3 January (Argus) — Prospects of India's 2025 bitumen consumption growth are mixed, as state governments' delayed disbursement of project funds are likely to persist and weigh on demand while the many incomplete projects could boost consumption. India is a net bitumen importer and the biggest consumer of Middle East origin bitumen, especially from Iran. India's bitumen consumption had touched record highs in 2022 and 2023 and surpassed 8mn t/yr, despite prolonged payment delays, as importers had offered atypically longer credit terms to road contractors. All importers and traders are "struggling with payment recovery", an Indian importer said. Many contractors are demanding credit as several state governments have not released funds, the importer added. "Demand is not bad, but it really depends on funding. Demand won't increase by a lot [next year], but it should be quite stable [to 2024]." High inventory pressure forced importers to offer atypically bigger discounts to liquidate cargoes, which squeezed their profit margins, especially as import costs increased given a supply crunch in Iran. But there is no dearth of projects as many were delayed because of funding constrains, importers said. Some state-controlled refiners anticipate consumption to grow next year, albeit marginally. Refiners were previously forced to offer larger discounts against listed values to attract more customers, which weighed on their profit margins this year. This could continue into 2025 would ultimately pressure refiners to reduce bitumen output and increase production of other higher valued oil products. Indian refiners typically produce around 5mn t/yr, which accounts for around 55-60pc of total bitumen consumption. "We are only expecting a 3-4pc increase in demand on year as no new major road projects have been announced, so it is hard to see a larger growth," a source close to a state-refiner said. "But imports will increase if we reduce production, given growth will still be in [the] positive. So next year will not be that fantastic in comparison and there would not be any capacity augmentation for bitumen." This indicates that the central government's expectation that Indian bitumen consumption will rise by 14pc on the year to 10mn t during the ongoing financial year ending March 2025 could be at risk. Limited Middle East exports Vacuum bottom feedstock supply has been erratic in Iran, and feedstock transportation from national refineries to private bitumen producers has also been delayed this year, which market participants expect to persist in the coming year. This will limit feedstock availability and in turn bitumen output, increasing export cost especially for higher priced VG40 grade, which is imported by India. Tight supply has also increased congestions at the Bandar Abbas port, forcing vessel owners and importers to incur higher demurrage, increasing costs and weighing on import appetite. There are also fears that the new Trump administration may impose more sanctions and other political measures on Iran next year, further clouding the export outlook. Iranian central bank's recent announcement to phase out the Nima foreign exchange platform has increased uncertainty on the rials' value against the US dollar as importers and exporters will now have to trade based on mutually agreed exchange rates, with the free market rate still depressed. Meanwhile, Baghdad's recent directive to stop oil and other oil products from entering Iran, unless the exports are licensed by state-owned Somo, could also limit drummed bitumen exports as bitumen producers do not typically possess a Somo licence. Iraqi drums are generally transshipped out of Bandar Abbas. The recent upgrade of Bahrain's state-owned Sitra refinery to 380,000 b/d from 267,000 b/d will primarily boost middle distillate and naphtha output, weighing on bitumen production. Middle East cargoes are also typically exported to southeast and east Asia during low demand periods in India. Seaborne prices in Asia rose to multi-year highs in 2022 and import appetite for relatively cheaper Middle East-origin bulk cargoes increased, which continued in 2023. Appetite from Asia this year was mostly from China and Vietnam, as other buyers preferred Asia-origin cargoes because of compatible specifications and proximity. "The Middle East-Asia arbitrage is closed, and we will see very little-to-no cargoes from the UAE to Asia," a southeast Asia-based trader said. This is because Middle East-origin cargo cfr prices are not likely to be competitive to Asian cargoes, with supply and loading constraints in Iran adding to the uncertainties. By Maedeh Mazinani, Sathya Narayanan and Chloe Choo Send comments and request more information at feedback@argusmedia.com Copyright © 2025. Argus Media group . All rights reserved.

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