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GFG Alliance may buy more US metals assets this week

  • : Metals
  • 18/06/26

London-based GFG Alliance's next US metals acquisitions may come as early as this week as it moves forward with its planned $5bn US investment program.

"We didn't come here just for [the re-commissioning of the mill]," GFG's executive chairman Sanjeev Gupta told Argus in an exclusive interview at the opening of the company's Georgetown, South Carolina, wire rod mill.

"I will be traveling around the country this week and will look to close on [potential acquisitions] as we go along."

Gupta said steel will be GFG's primary focus initially through its Liberty Steel subsidiary. Another company source suggested that a second steel mill could be the company's next acquisition.

Market participants have indicated the company is also looking at several scrap metal shredder opportunities, including in Tampa, Florida, where Liberty Recycling purchased Export Metals in March.

But holding company GFG Alliance plans to invest in US assets across its portfolio. GFG owns assets in the metals, energy, engineering and financial services industries.

"Banking is more progressed, we are looking at a couple of options on that sooner," Gupta said.

The group's London-based Wyelands subsidiary provides merchant banking and financial advisory services to GFG companies as well as outside clients.

Gupta is also interested in aluminum assets.

"It's one of our sectors, so we are definitely examining options on that," he said.

With the 750,000 t/yr Georgetown rolling mill as a foundation, Liberty Steel will look to become a "significant, relevant producer" with a goal of 5mn t/yr of capacity. Gupta suggested that 3mn t/yr of flat product capacity and 2mn t/yr of long product capacity would be a "nice mix."

Company sources suggested that the steelmaker could meet this goal as soon as the end of 2019. The company is looking at flat assets right now in addition to a complementary business to its Georgetown mill.

Still, value-added flat capacity may be favored over the more cyclical hot-rolled market. Hot-rolled coil is a product that sits in service center inventories, one representative from the company suggested. This compared with wire rod, which is a "living product" shipped direct to consumers.

Liberty Steel has invested an estimated $30mn-40mn in its Georgetown mill, which it acquired from ArcelorMittal late in 2017.

The mill is expected to be fully ramped up to its rolling capacity of 750,000t by next year. A 500,000 t/yr electric arc furnace (EAF) at the site is in the testing phase, while the rolling mill will start-up in coming weeks using imported billets.

Gupta expects that the mill's second EAF will be operational around this time next year.

ArcelorMittal closed the facility in July 2015, citing the impact of unfairly traded imports. Some market participants suggested that customer satisfaction may have also played a part.

Liberty Steel's acting chief executive Michael Setterdahl identified customer satisfaction as a key risk and an area of focus for the mill. Hurricanes were another risk given the mill's Atlantic coast location, he said.

Liberty will streamline its customer service approach. Mills push hard to achieve a 25¢/t savings on the production side, while spending $20/t on the sales side, he said.

Setterdahl does not see a drop in steel prices as a risk, given the plant's scrap-based production platform.

"If steel prices fall 30pc, scrap prices will drop 20pc," he said.

The company is expected to purchase more than 40,000 t/month of scrap by rail, truck and barge with the first furnace operational. But the mix will range from primes to #2 HMS, depending on the grade of product being produced.


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25/03/18

S Korea's automotive output, sales, exports rise in Feb

S Korea's automotive output, sales, exports rise in Feb

Singapore, 18 March (Argus) — South Korea's automotive output, domestic sales and exports rose in February compared with a year earlier, with the country closely monitoring potential US trade measures. The country's auto output rose by 17pc on the year to almost 352,000 units in February, according to South Korea's trade and industry ministry (Motie). Domestic sales rose by 15pc on the year to around 133,000 units, supported by a 30pc reduction on individual consumption tax on passenger cars until the first half of 2025, which has been capped at 1mn Korean won ($690). Exports rose by 17pc on the year to almost 233,000 units, with auto export revenue hitting an all-time high for the month of February at $6.07bn. Motie is planning to collect the automobile industry's opinions on the possibility of US trade measures, and will continue to closely monitor the potential impact and prepare "prompt" response measures, it said on 18 March. Eco-friendly vehicle domestic sales rose sharply by 50pc on the year to about 60,350 units in February, while exports rose by 32pc to almost 69,000 units. Eco-friendly vehicles in South Korea refers to hybrids, battery electric vehicles (BEVs), plug-in hybrids and hydrogen-fuelled vehicles. Hybrid domestic sales were up by 25pc on the year to about 44,600 units, while BEV domestic sales almost quadrupled to about 14,300 units, which Motie attributed to the EV subsidies it introduced in January. The January support measures included additional 20pc subsidies for young South Koreans' first EV and highway toll fees exemptions for EV owners until 2027. But BEV exports in February dipped by 2pc on the year to about 23,150 units, while hybrid exports continued to rise by almost 62pc to about 39,500 units. By Joseph Ho South Korea's car exports in 2025 units South Korea's domestic car sales in 2025 units Send comments and request more information at feedback@argusmedia.com Copyright © 2025. Argus Media group . All rights reserved.

EU prepares CBAM export scheme


25/03/17
25/03/17

EU prepares CBAM export scheme

Brussels, 17 March (Argus) — The European Commission is preparing a "solution" for exported goods under the bloc's carbon border adjustment mechanism (CBAM), to be presented before the end of the year. The commission will also expand the scope of the CBAM to "certain" steel and aluminium-intensive downstream products. The changes to the CBAM will be announced as part of a European steel and metals plan. In a draft of the plan to be formally presented on 19 March, the commission points to the need to address the problem of carbon leakage for CBAM goods exported from the EU to non-EU countries. The draft also notes that the commission is currently "quantifying" risks, before proposing an extension of the CBAM to "certain" steel and aluminium-intensive downstream products, so as to address the risk of European producers relocating outside the bloc to avoid higher carbon costs. The metals plan also announces an anti-circumvention strategy for the CBAM to be presented in the second half of 2025. The commission points to the risk of goods from low-carbon production facilities in non-EU countries being redirected to European customers, while carbon-intensive production continues for other markets. The metals plan also points to the risk of "greenwashing" carbon accounting practices, with "electro-intensive metals production benefiting from market-based instruments to appear low-carbon". The commission put forward proposals last month to simplify the CBAM, exempting some 90pc of the firms currently covered by the mechanism. By Dafydd ab Iago Send comments and request more information at feedback@argusmedia.com Copyright © 2025. Argus Media group . All rights reserved.

EU steel action plan to introduce melt and pour clause


25/03/17
25/03/17

EU steel action plan to introduce melt and pour clause

London, 17 March (Argus) — The European Commission will introduce a "melted and poured" rule as part of its steel and metals action plan, to underpin the effectiveness of its trade defence measures. The rule will mean the origin of goods is determined by the location at which the metal is originally melted, regardless of where it was further processed. This will prevent minimal transformation to evade dumping and other duties and provide greater clarity over the origin of the product, a draft of the plan suggests. The move will clearly have big ramifications for steel, where material produced in countries with duties, such as China, is further processed — for example, from hot-rolled into hot-dip galvanised — before being sent to the EU without paying duties. The commission said it will "remain vigilant, as overcapacities generated under non-market conditions may also have the effect of driving unrelated market-based producers in other third countries to export quantities to the EU that are displaced from their domestic or other traditional non-European markets". And the rule will have major implications for the EU's imports of cold-rolled and hot-dip galvanised, among other products, with one trading firm saying it would be a "game changer". European steel association Eurofer requested a melt and pour on Chinese steel as part of its request for a functional review of the steel safeguard. The commission also will "proactively" open duty investigations based on a "threat of injury" without waiting for material injury to occur. The carbon border adjustment mechanism will be extended to certain downstream products to prevent a shift to downstream goods that then avoid paying the carbon taxes required on upstream products, such as steel. European service centres and distributors have been requesting this move to protect themselves and their customers, which could face greater import penetration without an extension of the measures. By Colin Richardson Send comments and request more information at feedback@argusmedia.com Copyright © 2025. Argus Media group . All rights reserved.

DRC’s cobalt ban lifts cobalt, nickel product prices


25/03/17
25/03/17

DRC’s cobalt ban lifts cobalt, nickel product prices

Singapore, 17 March (Argus) — The suspension of cobalt exports by the Democratic Republic of the Congo (DRC) has bolstered the cobalt market, as well as pushed up prices of nickel products. The DRC suspended cobalt exports for four months effective from 22 February, although cobalt production is likely to remain at normal levels. The news sparked concerns in the market because the DRC is the world's largest cobalt producer, accounting for 75pc of total cobalt output. Market sentiment shored up, with prices of several cobalt and non-cobalt products surging to annual highs. Argus -assessed Chinese prices for 99.8pc grade cobalt metal stood at 235-255 yuan/kg ($32.49-35.26/kg) ex-works on 13 March, the highest level in almost 1.5 years, while Argus cif China assessment for 30pc grade cobalt hydroxide hit a two-year high of $9.50-10.80/lb cif China on the same day. Cobalt prices are expected to remain buoyant if the ban is extended, given DRC's majority share of global cobalt supply. But other products such as nickel sulphate and mixed-hydroxide-precipitate (MHP) also stand to gain from the ban. Argus -assessed Chinese nickel sulphate ex-works prices rose to a five-month high of Yn27,300-28,000/t on 13 March, partly supported by the ban because cobalt sulphate is a by-product of nickel sulphate production, while the Indonesian Nickel Index (INI) for 2-5pc cobalt payable in MHP surged to a record high of $154.80/metric tonne unit (mtu) on 14 March. Indonesia, the world's second-largest cobalt producer, is expected to benefit from the ban given the expansion of its MHP capacity . Market views on the ban were mixed, with some participants expecting prices to continue increasing owing to tighter cobalt supply. But others were less concerned, noting that there was abundant cobalt material outside of the DRC. Participants continued to closely monitor the market for further developments, with speculation on a possible extension of the ban and potential export quotas that could follow. Chinese Co metal prices vs INI MHP Co prices Send comments and request more information at feedback@argusmedia.com Copyright © 2025. Argus Media group . All rights reserved.

US rejects Australia's critical mineral deal


25/03/17
25/03/17

US rejects Australia's critical mineral deal

Sydney, 17 March (Argus) — The US last week rejected a deal with Australia offering access to its critical mineral sector in exchange for a metal tariff exemption, in the lead-up to the former implementing a 25pc tax on steel and aluminium imports. The proposal was not a financial deal, but involved "continued and improved [American] investment in getting access to [Australia's] critical minerals," Australian trade minister Don Farrell said in an interview on 16 March. The US government rejected the deal and refused to grant tariff exemptions for Australia on 12 March, following high-level discussions between officials from the two countries. Farrell has indicated that Australia's government is continuing to seek steel and aluminium tariff exemptions for its metal producers. He spoke to US commerce secretary Howard Lutnick on 14 March, and is scheduled to speak to US trade representative Jamieson Greer about the issue on 17 March. Australian aluminium producers will likely be hurt by the tariffs. US buyers purchased 93,000t of Australian aluminium in 2024, accounting for 10pc of the country's total aluminium exports. Australia's critical minerals proposal comes as US and Ukrainian officials continue to negotiate a deal over access to Ukraine's rare earth reserves. By Avinash Govind Send comments and request more information at feedback@argusmedia.com Copyright © 2025. Argus Media group . All rights reserved.

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