ASD completes purchase of Atlantic Steel Processing
UK general steel distributor ASD has acquired the assets of Birkenhead-based decoiler Atlantic Steel Processing out of administration.
The group, now owned by Spain's Hierros Anon, said the acquisition will enhance its presence in the UK's northwest and give it cost-effective access to the Irish markets — previously Ireland was an important region for Atlantic.
Atlantic also introduces new products to ASD, in the form of decoiled hot-rolled sheet and reversing mill plate. Atlantic has the widest decoiling line in Europe, Yoder, capable of processing 2.5m-wide material.
Hierros Anon has been on something of an acquisition spree of late, recently acquiring four country operations from Kloeckner, including ASD in the UK.
Atlantic fell into administration on 3 May, as first reported by Argus.
The business was affected by a difficult UK hot-rolled coil (HRC) and sheet market, and had a lack of cash after a management buyout in 2022. Continued difficult market conditions are likely to see more consolidation in the service centre and decoiling markets in the coming weeks, sources said.
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Lake Resources to delay Argentinian Kachi Li project
Lake Resources to delay Argentinian Kachi Li project
Singapore, 1 July (Argus) — Australian lithium developer Lake Resources expects further delays to its Argentinian Kachi lithium brine project, and will no longer continue with agreements to sell its Kachi supply. The firm's Kachi project previously faced a six-year delay that pushed its first phase production of 25,000 t/yr to 2027. The firm on 1 July said it now believes that this will "take longer than initially expected", citing macro environment conditions. The firm is also now "managing an ongoing process" for the potential sale of its lithium assets in other parts of Argentina, namely its Paso de Jama, Olaroz, Cauchari and Ancasti assets, as it focuses on the Kachi project. Major Chinese lithium-ion battery cathode active material precursor manufacturer CNGR has been looking to invest and potentially acquire significant stakes in some Argentinian lithium projects , including Paso de Jama, a source from CNGR told Argus early last month. Lake Resources will also cut more than 50pc of its global headcount to "right-size" its workforce and expenditure, on top of an earlier announcement in March about cutting 50pc of its "non-core operational and administrative" workforce. The firm will also no longer progress the non-binding offtake agreements signed in 2022 to sell its Kachi output to South Korean battery producer SK On and Netherlands-based commodity trading firm WMC Energy . The firm will rather focus on "competitive strategic partnering process" for equity investment and offtake agreements. Argus- assessed prices for 99.5pc grade lithium carbonate stood at 90,000-95,000 yuan/t ($12,382-13,070/t) ex-works China on 28 June, with recent bearish sentiment in the lithium market. Woes are also mounting for the downstream battery and electric vehicle industry. By Joseph Ho Send comments and request more information at feedback@argusmedia.com Copyright © 2024. Argus Media group . All rights reserved.
UK HRC market ponders early closure of Tata BFs
UK HRC market ponders early closure of Tata BFs
London, 28 June (Argus) — The UK hot-rolled coil (HRC) market was pondering the potential premature closure of Tata Steel's blast furnaces today. Tata Steel UK could close both its furnaces and the wider heavy end at its Port Talbot site by 5 July because of the impending and "indefinite" strike by members of the trade union Unite, due to start on 8 July, company chief executive Rajesh Nair said in a note to employees on Thursday. Tata had initially planned to maintain blast furnace 4 until September, with blast furnace 5 going down this month. The strike, involving 1,500 workers, would mean Tata could not "maintain safe and stable operations", Nair said. Tata is trying to bring Unite back to the negotiating table, alongside other unions Community and GMB. The company said it will pursue legal action to challenge the validity of Unite's strike ballot — it has questioned whether the union met the 50pc participation threshold requirements at certain sites. Sources were caught somewhat off-guard by the news, which is complicated by the failure of the UK government to approve the Trade Remedies Authority's recommendation to suspend import quotas for HRC . With HRC import quotas still in place, supply from ‘other countries' sellers will be increasingly constrained — the duty-free quota is around 23,000/t quarter, but almost 50,000t could clear into this in 1 July, partially because of Tata's increased importation of Indian HRC. Should Tata's furnaces go off line early next month, it would need to increase imports of overseas tonnage, including from its parent company in India. Sources suggest HRC supply from its parent company could be booked for end-August arrival at the earliest. If quotas have not been suspended, there could again be duties payable for other countries' sellers. In a typical market, the disruption would clearly propel prices higher. But demand remains low, with mill tied and independent service centres competing to sell sheet as low as £620/ddp, a price which leaves no margin, based on average stock cost. Europe's imposition of a 15pc cap on countries selling into its own other countries quota is another complicating factor. That move effectively caps any country selling into that quota to 141,849t/quarter and could lead to material being diverted to the UK. The UK has not amended developing nation status as part of its latest safeguard review, meaning Vietnam — a major seller into the EU other countries' quota — can sell into the UK without quota. Vietnam is bearing the brunt of increased Chinese HRC exports, taking 3.9mn t over the first five months of this year, compared to 6.1mn t over the whole of 2023, which was a record high. By Colin Richardson Send comments and request more information at feedback@argusmedia.com Copyright © 2024. Argus Media group . All rights reserved.
Lynas to produce heavy rare earths in Malaysia by 2025
Lynas to produce heavy rare earths in Malaysia by 2025
Beijing, 28 June (Argus) — Australia-listed mining company Lynas Rare Earths plans to start producing two separated heavy rare earth (HRE) products at its Malaysian facility by 2025. Lynas will start production of separated dysprosium and terbium at one of Lynas Malaysia's solvent extraction circuits in 2025. The facility is designed to separate up to 1,500 t/yr of a mixed heavy rare earth compound containing mixed samarium, europium, gadolinium, holmium, dysprosium and terbium (SEGH). The HRE project has completed initial engineering and detailed engineering design is underway, with commissioning and ramp-up expected in mid-2025. Lynas' HRE product range will increase to five products — dysprosium, terbium, unseparated samarium/europium/gadolinium, holmium concentrate and unseparated SEGH — after the separation of dysprosium and terbium from the SEGH compound. Dysprosium and terbium are needed to produce high-performance rare earth magnets, which are used in consumer electronics, electric vehicle engines and other automotive applications. Lynas is also progressing pre-construction activities for its planned rare earth processing facility in the US. Its facilities in Malaysia and the US have been designed to accept third-party feedstocks once they start operations. The heavy rare earths production provides a pathway to accelerate Lynas' commitment to processing all of the elements at the firm's Australian Mount Weld ore site, said Lynas' chief executive officer and managing director, Amanda Lacaze. Supply chains More national governments have been taking action to build or diversify more resilient and sustainable rare earth supply chains, to keep up with a fast-evolving clean energy transition and reduce their heavy reliance on China-origin supplies. China is the largest supplier of medium and heavy rare earths in the world, and it has been implementing stricter export control policies for rare earth extraction and separation technology. There is limited progress on the development of rare earth projects outside China, especially in the HRE market, mostly because of exploration technique restrictions, ore resource shortages, production costs and capital pressure and environmental consideration and so on. US-based rare earth producer MP Materials aims to develop a facility to produce HREs in the next few years. It has started neodymium-praseodymium oxide production since the third quarter of last year and targets commercial production of finished magnets by late 2025. Australian mineral producer Iluka Resources plans to achieve an output capacity of up to 23,000 t/yr of rare earth oxide, including 5,500 t/yr of neodymium-praseodymium oxide and 725 t/yr of dysprosium and terbium oxide from its refinery in Australia. Send comments and request more information at feedback@argusmedia.com Copyright © 2024. Argus Media group . All rights reserved.
China, EU launch talks ahead of EV provisional duties
China, EU launch talks ahead of EV provisional duties
Beijing, 28 June (Argus) — China and the EU have launched talks on the EU's anti-subsidy investigation on battery electric vehicle (EV) imports from China ahead of the planned start of provisional duties for early next month, according to China's ministry of commerce. The European Commission on 12 June announced provisional duties on Chinese battery EV manufacturers, setting an additional rate of 17.4pc for BYD, 20pc for Geely and 38.1pc for SAIC, as well as 21pc for other producers that co-operated in the investigation, from the current 10pc duty. "Minister Wang Wentao held video talks with the European Commission's executive vice-president and trade commissioner Dombrovskis on 22 June," said the ministry's spokesperson He Yadong. "The working teams of the two sides have maintained close communication and stepped up consultations." When asked for comments regarding industry discussions on whether the two sides are likely to set minimum import prices and volumes to replace the duties, similar to the approach taken in the EU-China photovoltaic dispute in 2013, He Yadong did not answer directly, saying "We hope that the EU will push for positive progress in the consultation as soon as possible and reach a solution acceptable to both sides so as to avoid the adverse impact of escalating trade frictions on China's and EU's economic and trade relations." The European Commission said on 12 June that if talks with the Chinese government do not lead to an "effective" solution, the provisional countervailing duties will start from 4 July and definitive duties would be published before November, it said. China's main economic planning agency the NDRC on 17 June said the EU's punitive duties on battery EV imports from China will increase the EU's dependence on fossil energy . But many industry participants remain hopeful that the duties can be negotiated down via the talks before the duties are imposed. The EU, China's largest trade partner since 2020, has introduced more protectionist moves against China in recent years, especially in the EV and battery raw materials sectors, including anti-subsidy duties on EVs and the Critical Raw Materials Act. China's exports of battery EVs to Europe fell by 15pc in January-May from a year earlier and by 22pc in May, according to data from the China Passenger Car Association (CPCA). Exports to main European destinations during January-May consisted of 115,318 units to Belgium and 67,956 units to UK. Chinese EV producers complained that the EU was requiring them to provide far more information than they needed for an anti-subsidy investigation. "Chinese EV and battery companies were required to provide information such as their battery components and chemical formulations, EV production costs, EV parts and raw material procurements, sales channels and pricing methods, customer information in Europe, and their supply chains," He Yadong said. China has taken up more than 60pc of the world's EV sales, driven by its decarbonisation targets and ambition of making up for its slower development of internal combustion engine vehicles. But it is facing more geopolitical restrictions from the US, EU and some other western countries. The US has raised its duty on China's EVs to 100pc from 25pc. Canada will also launch a consultation on 2 July for a potential punitive duty on China's EVs. Turkey has also imposed a 40pc duty on all Chinese vehicle imports. China exported 519,000 new energy vehicles during January-May, up by 14pc from a year earlier, according to data from the China Association of Automobile Manufacturers (CAAM). But exports in May fell by 9pc from a year earlier and by 13pc from the previous month to 99,000. Send comments and request more information at feedback@argusmedia.com Copyright © 2024. Argus Media group . All rights reserved.
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