S Korea to invest over $8bn to foster EV export sector

: Battery materials, Metals
23/09/26

South Korea's trade, industry and energy ministry (Motie) plans to "spare no support" to foster electric vehicles (EVs) as a key export engine, with 11.1 trillion won ($8.22bn) to be invested in the sector.

Motie will invest W2 trillion in research and development in the automobile sector over the next five years to support its "timely transition to future vehicles", it said on 26 September, adding that W9.1 trillion will be provided to finance conversion to "future cars".

Motie also hopes to expand ‘eco-friendly' vehicle export bases in northern Europe and Japan to support the inclusion of small and medium-sized EV part companies in global supply chains.

The country's automobile exports have remained strong and achieved double-digit year-on-year growth rates for 14 consecutive months in August, with exports surpassing 300,000 units in August and EVs accounting for one-third of total exports.

"In the future, the eco-friendly market will continue to grow thanks to the global carbon neutrality policies such as the US IRA and the withdrawal of internal combustion vehicles in the EU," Motie minister Bang Moon-kyu said. "The electric vehicle industry is a key industry that creates demand for various high-tech industries such as secondary batteries and semiconductors." Bang took over as the Motie minister from previous minister Lee Chang-yang in September.

South Korea was the largest importer of Chinese lithium-nickel-cobalt-manganese oxide (NCM) in January-August, making up 64pc of China's total exports of 67,252t. China also exported 125,771t of NCM precursor over January-August, with about 99.5pc exports going to South Korea. NCM and NCM precursors are used in EV batteries.

The country has been prioritising spending on measures to bolster its economy, such as higher funding allocated to green growth engines in its environment ministry budget, as South Korea continues to face economic uncertainties.

Separately, domestic producer Hyundai Steel decided on 26 September to invest W14bn to set up a steel pipe subsidiary in October. This could stimulate the firm's hot-rolled coil (HRC) import demand as HRC is used to produce steel pipes, a Chinese mill manager said.

By Tng Yong Li

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24/11/12

EU steelmakers ask for scrap export curbs

London, 12 November (Argus) — European steel producers association Eurofer continues to lobby the European Commission to curb scrap exports as the industry looks to decarbonise. On 12 November, Eurofer reiterated its view that the commission "recognise steel scrap as a strategic secondary raw material under the critical Raw Material Act, ensure the robust implementation and effective enforcement of the revised EU Waste Shipment Regulation to ensure compliance with the EU environmental standards in third countries and avoid circumvention, while securing a sustainable and diversified raw materials supply by leveraging bilateral Free Trade Agreements, granting reciprocal market access and eliminating illegal export bans and other distortions." EU scrap consumption is due to increase significantly in the coming years. "Scrap exports to third countries without comparable environmental and social standards [therefore] need to be restricted to ensure that the use of ferrous scrap generated in the EU contributes to sustainability objectives aligned with the EU ones," Eurofer said. The EU has long been a net exporter of ferrous scrap, with outflows of the material standing just shy of 11mn t in the first eight months of this year, customs figures show. Last year the EU exported 17.67mn t of ferrous scrap, a 5pc rise on the year. The bloc's trade has always been heavily focused on Turkey, the world's largest importer of ferrous scrap, with annual trade ranging from over half to two-thirds of total exported volumes in the past five years. Turkey, with around three-quarters of steel production based on electric arc furnace route, is heavily reliant on European-origin material. Turkey's share of EU exports increased in recent years after the UK left the EU, but the share of shipments from the bloc started rising from the second half of the mid-2010s, when Russia, another major ferrous scrap supplier to Turkey, started restricting exports. Russian exports of scrap to Turkey fell from around 2.5mn t in 2018, to 1.9mn t in 2019 and 2021 and to just over 400,000t in 2022-24. The EU's major trading partners for scrap include Egypt, India and Pakistan, all of which are third countries to the EU and non-OECD countries whose import volumes have been increasing as Asia continued to grow its steelmaking capacities, mostly through the IF (induction furnace) route. The EU's intention to restrict scrap exports has been deeply unsettling for the many developing markets' representatives, as much as its movement towards the implementation of CBAM (Carbon Border Adjustment Mechanism), which will reduce the possibility of exports to the EU from countries where steelmaking processes and carbon emissions are not compliant with the EU's stricter standards. By Corey Aunger and Katya Ourakova Annual EU-27 ferrous scrap exports metric tonnes Country 2020 2021 2022 2023 2024 Turkey 11,247,281.0 12,676,091.0 10,327,403.0 10,088,491.0 6,826,876.0 Egypt 1,076,930.0 1,810,866.0 1,431,831.0 1,570,352.0 1,237,722.0 India 443,130.0 294,994.0 1,108,881.0 1,906,608.0 576,008.0 Pakistan 853,178.0 727,466.0 700,879.0 731,182.0 371,943.0 Switzerland 455,034.0 511,098.0 463,440.0 339,894.0 355,709.0 Norway 314,627.0 294,956.0 396,933.0 451,873.0 309,299.0 Morocco 197,803.0 329,901.0 556,417.0 442,498.0 258,630.0 UK 361,741.0 307,281.0 307,173.0 275,125.0 203,786.0 US 622,523.0 574,264.0 316,077.0 694,507.0 182,064.0 Moldova (Rep. of) 251,184.0 344,609.0 79,788.0 192,964.0 179,579.0 Republic of North Macedonia 74,951.0 106,400.0 112,176.0 165,404.0 115,626.0 Bangladesh 107,611.0 149,570.0 700,108.0 388,936.0 91,410.0 Total 16,371,459 18,542,680 16,843,989 17,674,602 10,822,245 2024 data for January to August — Customs and Eurostat data Turkey's total and European scrap imports, 2010-24 Send comments and request more information at feedback@argusmedia.com Copyright © 2024. Argus Media group . All rights reserved.

Japan’s scrap export tender slips in November

24/11/12

Japan’s scrap export tender slips in November

Shanghai, 12 November (Argus) — The monthly Japanese scrap dealer co-operative Kanto Tetsugen's export tender registered a lower result in November driven by a softening seaborne market. The tender for 15,000t of H2 scrap settled at ¥45,180/t fas today, marking a decline of ¥500/t from October. This set the fob price at an equivalent of ¥46,180/t, or $300/t. The outcome was higher than the initial expectation of ¥44,000-44,500/t fas. Despite the result showing only a marginal decline, the dollar-equivalent price fell by $15/t to $300/t fob Japan because of the depreciation of the Japanese yen. The yen fell by 3.64pc from 9 October to ¥153.64:$1 today. The tender cargo will be shipped to Vietnam, trade sources said. Export negotiations to Vietnam have been limited in recent weeks as sellers are holding back because of a vessel shortage. Participating in the Kanto tender is the optimal choice for Vietnamese buyers if they have restocking demand, a local trader said. The cfr price, including the quality premium for tender cargo, should be $340-345/t. The Argus H2 fob Japan assessment was at ¥43,600/t on 11 November, and the October monthly average was ¥43,882/t fob Japan. The H2 collection price at Tokyo Steel's Utsunomiya plant was ¥41,500/t delivered to the mill. Traders expect Tokyo Steel to increase the collection price to align with the higher price in the seaborne market. Send comments and request more information at feedback@argusmedia.com Copyright © 2024. Argus Media group . All rights reserved.

Slow H2 progress risks shipping, steel net-zero goals

24/11/11

Slow H2 progress risks shipping, steel net-zero goals

London, 11 November (Argus) — Efforts to keep the steel and shipping sectors on track for the Paris Agreement's 1.5°C target and for net-zero emissions by 2050 are being hampered by the clean hydrogen sector's slow progress, industry participants said on a panel hosted by Paris-based intergovernmental group OECD ahead of the UN climate summit Cop 29. Clean hydrogen will be crucial to decarbonise the steel and shipping sectors because initiatives such as direct electrification and increased energy efficiency will be insufficient to reach net-zero emissions, panellists said. But ensuring supply of clean hydrogen and derivatives at scale and within the timeline required to meet climate goals has proved a challenge. The two sectors together represent 10pc of global CO2 emissions and they would require 10mn-15mn t/yr of low-emissions hydrogen by 2030 in order to be on track for net zero by 2050, OECD environment directorate policy analyst Joseph Cordonnie said. Adapting to the deployment of hydrogen or derivatives in both sectors will take time, considering vessels and plants have a long life, so change needs to accelerate to avoid "emissions lock-in", Cordonnie said. The global steel sector would require around 70 commercial-scale green steel plants by early 2030s to "stay as close as possible" to the 1.5°C target, according to Faustine Delasalle, chief executive at Mission Possible Partnership, a private sector initiative aimed at promoting the decarbonisation of hard-to-abate industries. Around 60 green steel projects have been announced, but fewer than 10 have reached final investment decision (FID), Delasalle said. Fewer than 10 projects targeting production of hydrogen-based fuels such as ammonia or e-methanol specifically for bunkering have reached FID, she said. Technology to decarbonise these heavy industries has progressed significantly over the last years, but "there is a lag" between technological advancements and industrial-scale investment and developers are struggling with project economics, Delasalle said. Many projects for production of hydrogen or derivatives have recently been delayed or cancelled. Demand for products throughout the value chain has not moved at the necessary scale, Delasalle said. While there is voluntary demand for 'green' industrial products, overall demand has not reached a level that can unlock greater investment for projects to scale up, she said. Waiting for the market to balance itself will not deliver decarbonisation, according to Delasalle. Even generous policy support for production such as the US' IRA scheme has not been enough for projects to build a strong business case. This shows the need for measures that "enable the green product to be more competitive versus the grey", like carbon pricing, "the removal of fossil fuel subsidies" and instruments that "drive demand for green commodities regardless of the price", such as mandates and carbon intensity thresholds, she said. Subsidies represented less than 5pc of funding for Swedish green steel producer Stegra's project in Sweden, the firm's public affairs director Ola Hansen said. Stegra has seen demand from offtakers who are voluntarily cutting lifecycle emissions, but "what we really need is carbon pricing and to take away the fossil fuel subsidies," Hansen said. "It's hard to compete with unpriced fossil fuel emissions," he said. By Pamela Machado Send comments and request more information at feedback@argusmedia.com Copyright © 2024. Argus Media group . All rights reserved.

Peru bets on trade ties with Asia as Apec starts

24/11/11

Peru bets on trade ties with Asia as Apec starts

Lima, 11 November (Argus) — Heads of 16 countries are in Peru this week to kick off the Asia-Pacific Economic Cooperation's (Apec) annual Leaders Week, as government officials in Lima look to grow their partnerships with Asia while staving off potentially disruptive strikes. The summit comes at a fragile time for Peru, where President Dina Boluarte has a historically low presidential approval rate of 4pc and bus drivers and small business owners are demanding protections from a wave of extortion. The event begins today with meetings among senior officials of the 21 member countries and closes on 16 November with the leaders' meetings, the pinnacle Apec event. With the confirmed arrival of Chinese president Xi Jinping later this week, the summit is likely to strengthen ties between Peru and Asia, amid US concerns of China's growing influence in Latin America. US president Joe Biden is also expected to travel to Lima from 14-16 November, according to the White House. He is then slated to go to Manaus and Rio de Janeiro to meet with Brazilian president Luiz Inacio Lula Da Silva. This week is also the scheduled ribbon-cutting of the Chancay megaport, a $1.3bn commercial hub north of Lima that will cut the transport time between Latin America and Asia from 35 days to 25 days. Cosco Shipping, the Chinese state-owned port operating company, owns 60pc of the project and the rest is owned by Peru mining company Volcan. It aims to become the main commercial port in the Pacific for neighboring Brazil and has a 17.8-meter depth, the greatest in Latin America. While the port will be inaugurated on 14 November, Cosco Shipping has said operations are expected to begin in early 2025. Peru's priorities for Apec include trade investments and the energy transition, with a focus on its critical mining sector — and workers' transition to the formal economy in Peru, where the informality rate is about 73pc. These goals extend to the CEO Summit, which is running simultaneously and will host hundreds of business leaders from Asia looking to invest in Peru's energy and mining sectors. Angel Manero, Peru's agriculture minister, said last week the government expects to approve sanitary protocols with China to export nuts, with the potential of expanding to meat imports, according to the official gazette. He added there are talks with China about attracting investments through the creation of Special Economic Zones. Peru last hosted the Apec in 2016. This time, workers in Lima — led by bus drivers' unions — have vowed a three-day strike during Apec to call attention to a string of killings they say are linked to resistance to extortion. Among their main asks is repealing a recent law approved by congress that they say weakens prosecution of organized crime by, among other things, changing its definition to exclude crimes of extortion. Prime Minister Gustavo Adrianzén has repeatedly asked workers not to strike to avoid "a bad show" during the high-level meetings. By Bianca Padró Ocasio Send comments and request more information at feedback@argusmedia.com Copyright © 2024. Argus Media group . All rights reserved.

UK's Liberty Speciality Steel could go insolvent

24/11/11

UK's Liberty Speciality Steel could go insolvent

London, 11 November (Argus) — The UK's Liberty Steel's Speciality Steel business is likely to go insolvent if its creditors do not approve a restructuring plan, the company said in a letter to creditors. The company's creditors will vote on the restructuring plan in the coming months and, if accepted, the plan will be in action on about 12 February 2025. Liberty Speciality's electric arc furnace, at Rotherham in Yorkshire, has melted less than 50,000t this year and has not operated since July, sources close to the company told Argus . The plant has capacity of more than 1mn t/yr. In its letter to creditors, Liberty said part of its financial distress "stems in part from a change in the appetite of some of its largest customers to continue to pre-fund" and pay prices agreed in July 2023. The company has been concentrating solely on the aerospace industry, where some of its customers had been making pre-payments of up to 80pc. Speciality Steel at present is subject to a winding up petition, filed on 8 October, by Harsco Metals Group and supported by other creditors Swallownest Engineering, Kings of Rotherham and RS Components. Harsco is owed about £4mn, according to sources close to the company. The petition is listed for a hearing at the High Court on 20 November, and the company intends to seek the withdrawal of the petition or adjournment of the hearing pending the outcome of its restructuring plan. Some creditors have already stated their intention to support the plan, Liberty said. Two Liberty customers have agreed, in principle, to make funding available to allow Speciality to continue trading "up to and beyond the point at which it is currently anticipated that the restructuring plan would come into effect", the company said. This would involve two upfront cash payments and "accelerated delivery premiums". Liberty's parent company, the Gupta Family Group Alliance, has reached an agreement in principle with two prospective lenders for Speciality and is in negotiations with a third. The funding, none of which is committed at present, is subject to the restructuring plan being sanctioned. The plan has no impact on the company's employees, Liberty said. The company has been operating its own short-time working policies at Speciality given low production levels. By Colin Richardson Send comments and request more information at feedback@argusmedia.com Copyright © 2024. Argus Media group . All rights reserved.

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