India to impose ADDs on coated steel imports

: Metals
19/07/18

India's directorate-general of trade remedies (DGTR) has recommended anti-dumping duties (ADDs) of varying rates for imports of aluminium and zinc-coated steel products from China, South Korea and Vietnam.

Duties have been recommended at $28.70-199.50/t for coated steel imports under HS codes of 7210, 7212, 7225 and 7226.

The duties will take effect after the federal government publishes it in India's official gazette, which may take a few days or months.

The DGTR made its recommendations after conducting investigations since 2 April following a complaint by Mumbai-based JSW Steel.

The duties are recommended at varying rates, depending on the level of harm caused by the imports.

The lowest duty of $28.67/t has been recommended for coated imports from South Korea's Dongkuk Steel Mill, while Posco received a recommended duty of $113.49/t. A rate of $122.66/t was recommended for all other South Korean coated imports.

The highest duty of $199.53/t was recommended for all coated imports from Vietnam. Mills that face duties on their exports of coated products to India include Tan Dong, Hoa Sen, Tay Nam Steel, Nam Kim Steel and Zhejiang Huada New Materials.

The DGTR will hear statements from parties connected to the decision on 30 July.

Steel buyers are worried that restricting imports will lead to a rise in domestic prices. "These duties will remove all competition for a couple of major steelmakers monopolising the coated steel market and prices will shoot up," said a Mumbai-based trader.

JSW Steel, Tata Bluescope, Tata-BSL, Posco Maharashtra and Essar Steel are among the major producers of coated steel in India.

The ADDs will help curb low-quality coated product imports. It is difficult to judge the quality of coated products at a glance, said a Delhi-based trader.

Domestic integrated mills have also sought an additional 25pc safeguard duty on several steel products along the lines of the US Section 232 import tariff imposed on steel imports last year. Market participants expect a decision on this soon.

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24/12/23

Viewpoint: Securing steady Ni ore supply the new focus

Singapore, 23 December (Argus) — Nickel ore supply security has become a main focus for investors and smelters after the delayed approval of Indonesian nickel mining work plans (RKABs) resulted in tight spot ore availability earlier in the year. Ramping up capacity and maximising profit margins have always been the priority for smelters, but the shortage of Indonesian nickel ore in some months this year turned their attention to securing ore supply instead. The lack of ore availability was largely attributed to slow RKAB approval rates and a disproportionate allocation of RKABs to companies and regions, particularly during the monsoon in May-August. Some smelters resorted to cutting production, while others opted to seek out alternative supplies. Imports of nickel ore to Indonesia were 55 times higher on the year in January-October, with the Philippines providing the bulk at 9.08mn t. Indonesia has approved a quota of 272mn wet metric tonnes (wmt) for 2024 and 247mn wmt for 2025, according to market participants. And more RKABs are expected to be approved in the coming months. Indonesia's nickel production — including nickel pig iron (NPI), mixed precipitate hydroxide (MHP) and matte — is projected to rise by 17pc on the year to 2.15mn t of nickel metal equivalent this year, and is expected to increase by 12pc to 2.4mn t in 2025, Argus estimates. The increase is largely driven by MHP and matte, while NPI growth has slowed owing to a lukewarm stainless steel sector. Indonesia-produced NPI is typically exported to China's stainless steel melt sector, whose output is projected to climb by 4.1pc on the year to 38.4mn t in 2024. But the growth rate could slow to 3.5pc given lacklustre demand in the machine building and property sectors. Indonesia has become the main global supplier of MHP and matte after a nickel price downturn forced various western mines and plants to enter care and maintenance, temporary suspensions or shutdowns. MHP and matte are the feedstocks to produce nickel sulphate, which is used in the production of nickel cathodes or batteries and subsequently electric vehicles (EVs). Nickel consumption in the Chinese EV sector is expected to remain firm at 343,000t in 2024 and 2025, while cathode output is expected to increase with new projects under way. The London Metal Exchange warehouse system has become a popular option to store the surplus cathodes. The forecast NPI, MHP and matte output of 2.15mn t and 2.4mn t of nickel metal equivalent would require 217mn wmt and 246mn wmt of nickel ore in 2024 and 2025, respectively, according to Argus data. This suggests that RKAB for 2024 and 2025 is probably more than enough to meet demand. But the unpredictability of the approval timeline, allocation of RKABs and weather conditions could disrupt ore availability, prompting smelters to adopt a more cautious stance — monitoring the progress of further RKAB approvals while actively securing new sources of nickel ore supply. Locking in supply agreements with nickel mining firms seems to have become a main priority of smelters, with collaborations increasing between Chinese investors and mining companies. Chinese battery metals and materials producer Green Eco-Manufacture (GEM) is partnering Indonesian nickel firm Merdeka Battery Material to secure ore for their high-pressure acid leaching (HPAL) production. GEM has another joint HPAL project with PT Vale Indonesia (PTVI), a subsidiary of Brazilian mining firm Vale. PTVI will also supply nickel ore to a HPAL project with Chinese battery metals and materials producer Huayou Cobalt and global automaker Ford. The Indonesian government extended mineral and coal information system Simbara to the nickel and tin supply chain in in July, in an effort to increase domestic and export shipment transparency, curb illegal mining and raise state revenue. But the system's implementation could disrupt steady nickel ore supply and consequently raise production costs because only registered mining firms with RKABs are allowed to issue invoices and billings, market participants suggested. Nickel ore demand VS RKAB.pdf Send comments and request more information at feedback@argusmedia.com Copyright © 2024. Argus Media group . All rights reserved.

Viewpoint: Copper volatility, uncertainty ahead in 2025

24/12/20

Viewpoint: Copper volatility, uncertainty ahead in 2025

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Viewpoint: PGM demand from hydrogen sector to rise

24/12/20

Viewpoint: PGM demand from hydrogen sector to rise

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US Congress passes waterways bill

24/12/19

US Congress passes waterways bill

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Q&A: Xcelsior aims to derisk minor metals investment

24/12/19

Q&A: Xcelsior aims to derisk minor metals investment

London, 19 December (Argus) — When UK-based Xcelsior Capital started exploring the investment landscape in the mining industry it noticed a significant interest in base metals but a lack of attention toward the lesser-known minor metals. These critical materials are often opaque and complex, leaving investors uncertain about where to start. Argus spoke with chief executive Liam Farley about Xcelsior's partnership with trading firm Wogen, the opportunities and risks associated with its investments, the influence of geopolitics, and Xcelsior's recent involvement in the Hillgrove antimony mine in Australia. What is Xcelsior Capital, and what is its investment model? Xcelsior is primarily a private credit investor that focuses on providing senior secured loans and working capital facilities and prepayments. As a financing partner of a physical commodity trader, Wogen Resources, we aim to establish a long-term sales and distribution agreement or offtake as part of our transactions. 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Minor metals have multiple end-uses, each with its different market dynamics. You must have a very deep understanding of the commodities themselves, the pricing mechanism, and the material specifications… these supply chains can be opaque. They can be very complex and fast-changing. Being able to navigate them is quite challenging for a lot of more generalist investors. It fundamentally creates a market risk component for critical metals, which can be a barrier. Additionally, many larger mining companies have traditionally avoid these markets because the assets are smaller and may not yield the expected revenue and profits compared with larger copper or iron ore mines. Which metals are on your radar? We are looking very closely at all the major commodities where Wogen has a prominent trading platform, including antimony, tungsten, vanadium, mineral sands, chrome and magnesium. We also are very interested in cobalt, but more on the recycling and processing side. In base metals, we are looking at tin. We focus on those commodities with energy transition links to new demand centres. New demand from sources like solar in small markets can significantly impact overall percentages and returns. For instance, electrification drives substantial demand growth for larger markets like copper, but its impact is smaller than that of markets like antimony. You recently signed an antimony deal with Larvotto Resources in Australia. Could you tell us more about it? We have signed a binding agreement with Larvotto Resources, whose subsidiary owns the brownfield antimony/gold Hillgrove project in New South Wales, Australia. We provided a $4mn loan in return for a seven-year production offtake agreement with Wogen, which will obtain the antimony concentrate from the mine and sell it globally through its customer base. Antimony prices have soared this year in part because of China's export restrictions. Do geopolitics play a significant role in investment decisions? There are large opportunities arising from the dislocation of value chains caused by geopolitics. We're now seeing this almost bifurcation in any material classified as dual-use in China like gallium, germanium and now antimony. This will result in increased volatility. The challenge is that you always want to underwrite projects based on long-term fundamentals, and we still do that. But we see the geopolitical shifts as an upside where we can capture that volatility in our investment strategy rather than rely on it as the sole basis for success. As global trade become more complex, do you see a need for more collaboration across different actors in the value chain? Private-public partnerships in critical metals are an absolute must for the success of western supply chains. One of our big focuses is to work with western groups, including government agencies, to facilitate the reshoring of critical metals and to figure out ways to incentivise new processing downstream. As a standalone investment, they can be challenging. They require very niche capital with great understanding. We are also looking for long-term partnerships with end-users and OEMs to form alliances and secure the supply of materials. There is a big opportunity in this area, but it takes a partnership approach, and that's something that everyone in our industry should prioritise in the next five to 10 years. By Cristina Belda Send comments and request more information at feedback@argusmedia.com Copyright © 2024. Argus Media group . All rights reserved.

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