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Egypt likely to impose extra steel import tax

  • : Metals
  • 20/05/04

The Egyptian government is expected to approve an additional 10pc duty on steel imports, which could have ramifications for the CIS, Turkey and Europe.

Market participants report that a draft proposal is pending approval by the prime minister, after parliamentary acceptance. Some expect the duty is likely to get the green light within the next week and could come into force immediately.

But as has been the case historically, buyers' pushback on import measures could see the plan scrapped or delayed. The most notable difference this time round is that the news comes during the global Covid-19 pandemic, which has already affected trade patterns and significantly increased uncertainty in the steel markets, while also hampering demand. While there are many factors at play, this import duty in Egypt could see traditional trade flows further disrupted, as the country is a major spot market player across products.

HRC

Egypt is one of the primary export markets for CIS and Turkish hot-rolled coil (HRC) producers. CIS exporters already face a 5pc duty, but they have still been able to continue selling into the country. In order to compete with Turkish and other suppliers, CIS mills would most often price their HRC to work out on par with or slightly below the rest, on a cfr basis and with the duty accounted for.

An additional 10pc duty will make no difference in terms of the competitiveness of one country to another, but is likely to see more buyers turn to domestic supply, unless importers are willing to discount material further to compete with the only Egyptian producer of HRC. Egypt is not only a big market for mills directly, but also for a lot of traders. When duties were introduced on Turkish rebar, of which Egypt imported a significant volume, this trade route ceased to exist.

Egypt is also an important market for European mills. Amid sluggish European demand for HRC — as has been the case during the Covid-19 outbreak — EU suppliers, and most notably mills in northern Europe, have turned to Egypt for exports, where they have offered at a huge discount in comparison with EU prices. In 2019, 245,249t of HRC was exported from the EU to Egypt, out of total exports of 3.8mn t, Eurofer data shows. This places Egypt in the top three export destinations for the EU, behind Turkey and the US. At the same time, Italy and Spain sometimes import HRC from Egypt — in 2019 this amounted to over 110,000t, and a duty could see reduced export market allocation out of Egypt.

Billet and longs

An additional 10pc duty on top of existing safeguards in place for long products is unlikely to have much effect as demand in Egypt for billet and long product imports remains fairly muted. Egypt was previously a significant market for billet imports, especially from the CIS and Turkey, given its high proportion of re-rollers. But after the government imposed safeguards of up to 25pc on imports, purchases dropped off.

In 2016, Egypt imported almost 2.8mn t of semi-finished steel but in 2017 this dropped significantly. In 2019, the country imported just 27,120t of semi-finished steel products.

At the end of the first quarter of 2020, as billet prices began to slide, an arbitrage began to open and Egyptian re-rollers began to buy billet once again. The Argus daily Black Sea steel billet assessment lost $64/t over March, reaching a low of $326/t fob on 3 April, at which point re-rollers were heard to buy some billet cargoes. But this was short-lived as the assessment once again began to climb on 8 April, reaching $360/t fob by the middle of the month.

As billet prices begin to show signs of weakening once more, an extra 10pc duty is likely to stem any buying appetite from Egypt, despite the lower price levels. From 23 April, the Black Sea steel billet assessment lost $28/t to reach $332.50/t fob at the end of the month.


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25/05/15

Pakistan container scrap trade pressured by surcharges

Pakistan container scrap trade pressured by surcharges

London, 15 May (Argus) — Ferrous scrap suppliers are facing higher costs from new surcharges announced by major container shipping firms on trading routes to Pakistan, following recent geopolitical tensions in the region. Shipping lines have announced imminent emergency operational cost recovery surcharges on containers for trading routes to and from Pakistan following the recent escalation in tensions between the country and India. This resulted in days of fighting, with India launching attacks on Pakistan and Pakistan-administered Kashmir in retaliation for an April terrorist attack in Kashmir. India-Pakistan relations have stabilised after the countries agreed a tentative ceasefire on 10 May , but concerns remain over security in the region. Major global container shipping line Maersk has imposed charges of $300/container to Pakistan from every country, excluding those in Asia-Pacific, starting from 21 May or 13 June, depending on the country. Surcharges of $300-500/container have been implemented on trade from Pakistan. Other lines, including MSC, Hapag-Lloyd and CMA CGM, have announced surcharges on imports and exports ranging from $300-800/container, depending on line, route and trade direction, which will start coming into effect from mid-May for most regions, with those for other regions such as North America coming into effect in the first half of June. The Pakistan and Indian governments at the start of May imposed shipping orders banning merchant vessels bearing the other country's flag from stopping at their ports. And shipping lines changed trading routes across the region following the outbreak of hostilities and prior to the ceasefire announcement. But Maersk said this week it is "witnessing a gradual return to normalcy" at port operations in India and Pakistan, and will continue to monitor the situation closely. Indian imports/exports can remain on board through Pakistan ports, while in India, Pakistan imports are allowed to transit through Indian ports but not exports, the firm said earlier this week. Any increase to freight costs is likely to further limit exporters' interest in selling to the region, which has already slowed significantly, market sources said. As a result, some container exporters and freight forwarders do not expect the surcharges to remain in place. Containerised scrap suppliers said prices to Pakistan would need to rise by around $10/t to absorb the additional surcharges, but many noted difficulties, with buyers in the country not lifting their bids and their own purchasing prices upstream remaining firm. The last containerised shredded scrap sales to the south of Pakistan were reported in the $370-375/t range, which buyers are heard to be continuing to target. But domestic prices for shredded scrap in key supply regions remain firm, with inland yards not willing to accept lower prices sought by suppliers. Exporters would need one of the two price points to move to make trade with Pakistan workable. By Corey Aunger and Brad MacAulay Send comments and request more information at feedback@argusmedia.com Copyright © 2025. Argus Media group . All rights reserved.

EU stainless prices to continue to fall: Assofermet


25/05/15
25/05/15

EU stainless prices to continue to fall: Assofermet

London, 15 May (Argus) — An fall in European producers' cold-rolled stainless steel prices and input costs in the third quarter will make output more competitive against imports from Asia, including China and Indonesia, according to Alessandro Bettuzzi, sales director at Italian distributor Oiki Acciai Spa and co-ordinator of Italian steel and scrap association Assofermet's stainless steel division. On the sidelines of last week's Made in Steel event in Milan, Bettuzzi said high service centre stocks and weak demand in key sectors like automotive and household appliances are likely to mean a weak third quarter in Europe, particularly in Italy, with its many distribution centres. "I'm not positive for the next month," Bettuzzi told Argus . "This is because fundamentals are so weak, and prices of scrap nickel are falling, which will produce lower prices than today's level." A further fall in energy costs will also bring down prices, keeping imports at bay, he added. Following January-February's mostly stable prices in Europe, Bettuzzi said the cold-rolled flat product market fell by €100/t from mid-March. The downtrend will probably continue until July, he said, given the pattern of weakening demand over the past eight months. The Argus assessment for stainless steel 304 cold-rolled 2mm sheet delivered northwest Europe had risen to €2,655/t at the end of February from €2,500/t at the end of December, but had fallen to €2,525/t by the beginning of May. Traders surveyed by Argus see further declines, as mills focus on capacity utilisation and filling order books. "The auto and appliances industries at this moment are going through a major lull," Bettuzzi said. "These sectors are very important to absorb stainless steel." Bettuzzi reiterated Asoffermet's view that a recovery can only happen if the EU starts thinking about safeguarding downstream end-products, instead of focusing on protecting upstream steelmakers. "If final consumption disappears, everything upstream will disappear," he said. "Asoffermet is really pushing for this. The EU is focusing too much on the producer." Energy prices remain a problem for European producers, and Bettuzzi said investment in renewables is the long-term solution. "For Italy, it is all out how we negotiate as we are obliged to buy energy from other countries, which can cause fluctuations." Bettuzzi cautioned against allowing Asian semi-finished products, such as slab, to enter Europe exempt from duty, and suggested applying the carbon border adjustment mechanism (CBAM) or a similar duty. "If we apply duties only on coils and sheets, but do not impose duties on semi-finished products, they will come in at 25pc less from Asia compared to Europe," he said. Bettuzzi highlighted flanges, heavily imported by Italy, which have been arriving duty-free. By Raghav Jain Send comments and request more information at feedback@argusmedia.com Copyright © 2025. Argus Media group . All rights reserved.

Global battery demand rises close to 1TWh in 2024: IEA


25/05/15
25/05/15

Global battery demand rises close to 1TWh in 2024: IEA

Singapore, 15 May (Argus) — Global battery demand across electric vehicle (EV) and storage applications rose to almost 1TWh in 2024, according to energy watchdog the IEA, in its latest report. Demand was largely driven by EV sales growth, with EV battery demand growing by more than 25pc on the year to over 950GWh, mainly propelled by electric cars which accounted for over 85pc of EV battery demand, said the IEA in its EV Outlook 2025 . The almost 1TWh of demand is expected to more than triple to over 3TWh in 2030 under the IEA's stated policies scenario (Steps), which is based on countries' prevailing policies , with more demand from electric trucks despite electric cars still making up the majority of demand. EV battery demand rose by more than 30pc on the year in China, and currently takes up 59pc of total global EV battery demand. US demand has also grown, with the country taking up 13pc of the total share, on par with the EU. The IEA expects critical minerals supply surplus to persist over the next few years but cautioned that depressed prices could dissuade future investments and lead to supply shortages for lithium and nickel by 2030. "It will take about a decade before recycling has a significant impact on reducing primary mineral demand," said the IEA, citing feedstock limitations. Recent raw material prices for battery recyclers in China, the largest battery recycling market, remain higher than their battery recycling yields such as recycled lithium, nickel and cobalt, a Chinese battery recycler told Argus . Domestic battery recycling plants operating rates are "not high," the battery recycler said, with very thin activity in the domestic black mass market. Excessive battery capacity Global battery cell manufacturing capacity grew by almost 30pc in 2024 to 3.3TWh, more than triple the battery demand, according to the report. South Korean battery manufacturers accounted for over 400GWh of overseas battery manufacturing capacity in 2024, much higher than the 60GWh from Japanese manufacturers and 30GWh from Chinese manufacturers. South Korea's battery manufacturing is poised to further expand to more than 1TWh in 2030, almost double that of Chinese manufacturers, if all announced projects materialise. Global manufacturing capacity could grow to about 6.5TWh in 2030, about double the demand projected under IEA's Steps scenario, if all committed projects are realised. This would also entail China's share of global manufacturing capacity weakening from 85pc in 2024 to two-thirds by 2030. LFP battery share rises Lithium-iron-phosphate (LFP) batteries made up nearly half of the global EV battery market in 2024, said the IEA. Nearly all electric car LFP batteries sold in Europe or US were produced in China, which has a "de facto monopoly", said the IEA, with LFP becoming more attractive to European original equipment manufacturers looking to cut production costs. South Korean battery makers' market share in the EU fell to 60pc last year, down from 80pc in 2022, displaced by Chinese battery producers because the chemistry of LFP makes it more competitive, according to IEA. But top South Korean battery makers — LG Energy Solution , Samsung SDI , SK On — have all unveiled plans to mass produce EV LFP batteries over the coming years, looking to compete in the space. Japanese battery makers meanwhile saw their US market share fall to around 48pc, eroded by South Korea. South Korea took up 35pc of US market share last year, up from 20pc in 2022. Japanese domestic LFP development is also facing challenges, with Japanese carmaker Nissan recently cancelling a LFP plant in Kyushu as it goes through a restructure. LFP's penetration in the southeast Asia, Brazil and India markets is rising even quicker, with LFP battery electric car shares surpassing 50pc in each of the countries in 2024, according to the report. By Joseph Ho Send comments and request more information at feedback@argusmedia.com Copyright © 2025. Argus Media group . All rights reserved.

Syrah to restart Mozambique graphite mine in June


25/05/15
25/05/15

Syrah to restart Mozambique graphite mine in June

Sydney, 15 May (Argus) — Australian mineral producer Syrah Resources will resume operations at its 350,000 t/yr Balama graphite mine complex in Mozambique by the end of June, following a nine-month shutdown over farming and election protests, the firm announced today. The company mines and processes graphite at Balama. It will only start mining graphite at the site in the July-September quarter, the firm said. Syrah's existing graphite stockpile at Balama can support graphite processing for at least three months as mining resumes, it added. Syrah regained access to Balama in early May , for the first time since September 2024 when farmers blocked access to the mine in a non-violent protest. The company's teams have not spotted any site damage. The protest was originally linked to farmers with "historical farmland resettlement grievances", according to Syrah. But the unrest persisted and worsened after Mozambique's general election in October, which triggered violent protests across the country's major cities given claims of electoral fraud. Syrah declared force majeure on some graphite shipments in December, and triggered events of default on a US government loan over the protests. But it did not default on any payment obligations Most protestors left the mine after Syrah signed a deal with farmers and the Mozambique government in April. Mozambique authorities removed remaining demonstrators over 3-4 May and secured the site. By Avinash Govind Send comments and request more information at feedback@argusmedia.com Copyright © 2025. Argus Media group . All rights reserved.

Bolivian president bypasses reelection


25/05/14
25/05/14

Bolivian president bypasses reelection

Montevideo, 14 May (Argus) — Bolivian president Luis Arce will not run for a second five-year term and instead backed a united front to elect another leftist candidate. Arce's decision on Tuesday came on the eve of the filing deadline for the 17 August election. He called on former president Evo Morales to also step aside from the race to improve the chances of another left-wing contender. Morales is fighting a court ruling that he is ineligible to run after already having multiple terms. Arce said the Movement to Socialism (MAS) party should rally behind senate president Andronico Rodriguez, 36. Rodriguez announced his candidacy on 3 May as a third way, but remains closely aligned with Morales. He has led the senate since 2020. Four center-right candidates are expected to compete in the race. The MAS has governed Bolivia for most of the past 20 years. Arce and Morales, allies turned enemies, blame each other for Bolivia's economic turmoil, including its dwindling oil and natural gas production. Inflation through April was 5.5pc, up from 1.3pc in the same period last year. Inflation was 9.9pc last year, the highest since 2008. The World Bank forecasts GDP growth at 1.4pc for the year. The oil and gas sector is at the heart of the crisis. Bolivia has gone from fuel independence to importing 54pc of gasoline and 86pc of diesel, both of which are heavily subsidized. The government forecast $2.9bn on fuel subsidies this year. Crude production was close to 21,000 b/d in 2024, according to the statistics agency. It was approximately 51,000 b/d in 2014. Natural gas output, the cornerstone of Bolivia's economic growth for most of this century, has fallen. Output was approximately 33mn m³/d in 2024, down from a peak of 56mn m³/d in 2006. Proven reserves were at 4.5 trillion cf in 2023, less than half of the 10.7 trillion reported in 2017, according to the state-owned YPFB. YPFB in early May announced a new tender to certify reserves by the end of this year. Bolivia stopped daily piped gas exports to Argentina in September and has a contract to export up to 20mn m³/d to Brazil. Domestic demand for gas is close to 14mn m³/d, stated YPFB. On 1 April Argentina began using Bolivia's pipeline infrastructure to ship natural gas to Brazil. Three companies — Argentina's Pluspetrol and Tecpetrol, and France's TotalEnergies — have so far sent gas to Brazil. By Lucien Chauvin Send comments and request more information at feedback@argusmedia.com Copyright © 2025. Argus Media group . All rights reserved.

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