Europe longs: Mills expect firmer market
Most European producers increased their offers for long products this week, anticipating demand to improve after the Easter holiday period and propped up by a rebound in scrap costs.
The Argus weekly Italian rebar and drawing-quality wire rod assessments remained at €570/t ($620/t) ex-works and €645/t delivered, respectively.
In Italy, rebar sales prices remained at €560-570/t ex-works, including extras for sizes, but mills announced offers at up to €600/t ex-works, referring to increasing scrap costs. Buyers were sceptical about the price increases as mills still needed to fill their April order books and there were no expectations for substantial increases in consumption. Buyers that needed to replenish stocks placed orders in late March, when there were signs that prices had bottomed out.
In the nearby markets, no fresh offers were reported. Rebar was quoted at €570-580/t fca late last week, when some Italian mills were eager for new sales. In particular, the tradeable value for rebar in Poland was reported at €615-620/t delivered this week, while in late March deals were concluded slightly below this. In the meantime, offers for Polish rebar stood at €625-630/t delivered to domestic buyers, while in nearby markets prices were pegged at €625-640/t delivered. Similar prices were available for overseas material from docks in the Baltic region.
In Germany, prices for small-to-medium purchases of rebar remained at €630-640/t delivered. Spanish rebar was still quoted at €615/t cfr to northwest Europe, with small discounts deemed available. But mills are likely to try and increase prices should they see demand.
In the Balkan region, Bulgarian rebar prices settled at 1,190-1,210 lev/t (€608-619/t) delivered late last week, while in Romania rebar was available at €630-640/t delivered.
But some customers showed more interest in overseas offers in late March. Rebar was mainly booked from Turkey, as prices were at $585-590/t fob, which would be below €600/t delivered in any region. Egyptian rebar was quoted at $580-590/t fob, but was available for later shipment.
Southern and northwestern European customers were booking Asian wire rod at $520/t fob in late March, which is estimated at no higher than $600/t cfr depending on the ports. Some buyers expressed concerns that the next "other countries" quota could be exhausted promptly again, as almost 83,771t were awaiting clearance in the first days of April. Turkish allocation was estimated to be filled promptly in this period too.
Trade restrictions supported stronger prices for wire rod in Europe, with mills announcing up to €20/t price increases. In particular, new offers for drawing quality material in the Italian market were indicated at €650/t delivered. In other markets, mills pushed up offers from €660/t delivered to up to €680/t delivered. Mesh quality wire rod in Germany and other nearby markets was available at €620-630/t delivered.
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Some eastern US rail shipments restart after Helene
Some eastern US rail shipments restart after Helene
Washington, 30 September (Argus) — Some railroad operations in the southeastern US have resumed in the aftermath of Hurricane Helene, but major carriers warn that some freight may be delayed while storm-damaged tracks are repaired. Rail lines in multiple states were damaged after Hurricane Helene made landfall on the northeastern Florida coast on 26 September as a category 4 storm and traveled northwards as a downgraded but still dangerous storm into Georgia, Tennessee, and the Carolinas. The storm left significant rain and wind damage in its wake, including washed-away roads, flooded lines, downed trees and power outages. Eastern railroads CSX and Norfolk Southern (NS) said they are working around the clock to restore service to their networks. Norfolk Southern said it had made "significant progress" towards its recovery with most major routes back in service including its Chattanooga, Tennessee, to Jacksonville, Florida, line as well as its Birmingham, Alabama, to Charlotte, North Carolina route. Norfolk Southern said freight moving through areas that are out of service could "see delays of 72 hours". Several of Norfolk Southern's other routes remain out of service, including rail lines east and west of Asheville, North Carolina, because of historic levels of flooding. There are multiple trees to remove along a 70-mile stretch from Macon, Georgia, to Brunswick, Georgia. And downed power lines are keeping the railroad's lines from Augusta, Georgia, to Columbia, South Carolina, and Millen, Georgia, out of service. CSX said "potential delays remain" but did not provide specifics. However, the railroad said it had made "substantial progress" in clearing and repairing its network. The railroad's operations in Florida have mostly reopened, as have rail lines in its Charleston subdivision, which crosses South Carolina and Georgia. But bridge damage and major flooding has kept CSX's Blue Ridge subdivision out of service. A portion of the line running from Erwin, Tennessee, to Spartanburg, South Carolina, has been cleared, but CSX said "a long-term outage" is expected for other parts of the rail line. By Abby Caplan Send comments and request more information at feedback@argusmedia.com Copyright © 2024. Argus Media group . All rights reserved.
Ge buyers seek new supply, alternatives as demand rises
Ge buyers seek new supply, alternatives as demand rises
London, 30 September (Argus) — Germanium consumers around the world are looking for alternatives while producers aim to lift output, as demand increases while restrictions on exports from China reduce availability. Prices for 99.999pc germanium metal exported from China have soared to $2,580-2,680/kg fob from $1,450-1,550/kg at the start of June and $1,110-1,210/kg at the start of 2023, according to Ar gus assessments. The upper end of the range in Europe tipped past $3,000/kg cif at the start of September and remains there. Germanium dioxide prices have similarly climbed. Demand for germanium for defence and advanced computing applications is growing. The adoption of artificial intelligence (AI) in a range of industries is driving strong demand for silicon-germanium owing to the compound's ability to operate at higher frequencies and lower power. That makes it well suited to the higher performance and efficiency that AI requires, according to Israeli firm Tower Semiconductor. Tower expects the utilisation rate of its Fab 3 facility to hit full capacity in the third quarter, up from 55pc in the second quarter in response. Beyond AI and data communications, automotive manufacturers are exploring the use of silicon photonics in light detection and ranging (LiDAR), the company said. As advanced driver-assistance systems (ADAS) become standard and autonomous vehicles are rolled out, consumption of germanium in infrared optics for thermal imaging cameras and night vision devices is increasing. But consumers are concerned about security of supply. The US increased its imports of germanium metal and dioxide in 2023 by around 20pc year on year to 38t, according to the US Geological Survey. Exports from China, the world's largest germanium producer and exporter, dropped sharply after the government introduced export controls in August 2023. Given the use of germanium in optical components, power devices and sensors, the US Department of Defense (DoD) is working with suppliers to ensure it has sustainable access. The Defense Logistics Agency has a partnership with LightPath Technologies to replace germanium in certain DoD applications. LightPath is working to reduce the amount of optics it produces from germanium, to reduce the risk of supply chain disruption and help customers convert their systems to use optics made from its Black Diamond chalcogenide materials, the company's president and chief executive, Sam Rubin, said in its second-quarter earnings call. LightPath's infrared component sales fell by $1.7mn, or 36pc, primarily after its largest customer did not renew a large annual contract for germanium-based products. The company last week announced a $500,000 initial production order for thermal imaging assemblies using Black Diamond from a new tier-1 defence customer. But for other products, the DoD is working to support an increase in its germanium consumption. It is investing in Canadian semiconductor materials firm 5N Plus to expand its capacity to produce space-qualified germanium wafers used in solar cells for defence and commercial satellites. It has awarded the company $14.4mn via the Defense Production Act Investment programme to upgrade and expand the production facilities and tools at 5N's facility in St George, Utah. The four-year project will work to improve germanium sourcing, recovery and refining, the DoD said, and supports product diversification to ensure the long-term viability of the business. It also aims to address process integration to meet solar cell producers' changing germanium substrate requirements. Germanium producers are looking to capitalise on the rise in demand by increasing output, as the higher prices make refining the metal more profitable. Mining exploration companies such as Anson Resources and EV Resources in Australia and Cantex Mine Development in Canada are pursuing projects with germanium content for potential production. But the fastest way to do so is by processing tailings to extract germanium. For instance, Hong Kong Sinomine Rare Metals, which has acquired the Tsumeb copper smelter and polymetallic tailings pile in Namibia, recently estimated that the tailings contain 746.21t of germanium metal. The company plans to add a germanium-zinc smelting production line to the copper smelting line, to commercialise output "as soon as possible". Earlier this year, Belgium's Umicore signed a long-term agreement with STL1, subsidiary of Democratic Republic of Congo state-owned mining firm Gecamines, to optimise germanium production at STL's processing facility commissioned in 2023 at the Big Hill tailings site in Lubumbashi. STL's germanium previously entered the market through third-party refiners outside the country. The company is looking to increase the value it generates from the metal by refining it domestically, while Umicore will diversify its sources of germanium supply with an offtake of "substantial volumes" for its downstream optical and electronic products. Umicore expects to refine the first test volumes of concentrates in the fourth quarter, and help analyse the germanium content in the tailings to further develop downstream products. A continued rise in prices could see further refining and recycling capacity come on line, unless substitution in germanium's various growing applications becomes more widespread. By Nicole Willing Send comments and request more information at feedback@argusmedia.com Copyright © 2024. Argus Media group . All rights reserved.
CME N.EU HRC futures rally on China stimulus
CME N.EU HRC futures rally on China stimulus
London, 30 September (Argus) — North European hot-rolled coil futures prices rallied on the CME Group's contract today, following increases in the Chinese market. In the brokered market, November rose by €35/t from the 27 September settlement to €630/t in a 2,500t trade, while January traded at €650/t for 5,000t, up by €20/t from the 27 September settlement. October was up by €15/t at €580/t, at a steep premium to Argus ' underlying index of €520/t on 27 September. December also rose by €20/t to €645/t. On screen November and December both traded €35/t higher, while March 2025 rose by €33/t to €670/t. Physical market participants attributed the increases to China's rally, and the European Commission confirming changes to how imports are registered, potentially opening the door for retroactive definitive duties in the investigation against Egypt, Japan, India and Vietnam. Eurofer is also lobbying for more import measures to reduce the effects of global overcapacity. The strong futures contango led some derivatives participants to think the first quarter was overpriced, given the structural difficulties still facing the European market, such as Germany's economic slowdown and lower demand from key steel-using industries, such as automakers. "Will Germany really be fixed by January," one source said, suggesting the cost of carry was much lower than the premium in the futures market. In light of the flurry of trading, September was a new record month for the CME's contract, which launched in March 2020. As of 11:21 in London, just over 218,000t had traded on September, up from the previous record of 205,860t reached in January 2023. More volume has traded this year than last year in January-September — around 923,000t has traded this year, compared with around 913,000t in the same period of 2023. By Colin Richardson Send comments and request more information at feedback@argusmedia.com Copyright © 2024. Argus Media group . All rights reserved.
Taiwan's ferrous scrap imports fall 6pc on year in Aug
Taiwan's ferrous scrap imports fall 6pc on year in Aug
Singapore, 30 September (Argus) — Taiwan's ferrous scrap imports totalled 215,245t in August, marking a 6.2pc decrease year-on-year and a 1.8pc drop month-on-month. The reduced import volume was because of buyers avoiding Japan-origin scrap because of a drop in US containerised scrap price from the US west coast. Weak domestic steel demand in Taiwan and low-cost billet offers from China led buyers to limit their ferrous scrap imports. Imports from the US west coast increased by 10.2pc on year and 5.3pc on month as buyers took advantage of falling prices and sought more US containerised scrap. The US accounted for 47.7pc of Taiwan's total ferrous scrap imports in August. The Argus HMS 1/2 80:20 containerised scrap from the US west coast started at a high of $345/t at the beginning of August but dropped to $325/t by 30 August. Scrap imports from Japan fell by 67.5pc from a year earlier to 22,502t in August. The decrease was because the Japanese yen surged, reaching as high as ¥146.17:$1 on 31 August, up from ¥149.20: $1 at the start of the month. A stronger yen meant that buyers had to spend more US dollars for trades, as deals are typically closed in dollars. The reduced imported scrap volumes reflected weak steel fundamentals and expectations of a prolonged downturn during the summer seasonal lull from May to September. An influx of cheap billets from China significantly impacted scrap demand in August. Billet prices were as low as $445-450/t cfr Taiwan in mid-August, trade sources said. Imported ferrous scrap may continue to decline in the coming months if domestic steel demand does not show significant signs of improvement, trade sources said. Some sellers are optimistic about rising scrap prices and volume in the fourth quarter of the year, as slower collection efforts and year-end celebrations usually mean that mills will look to restock more tonnages before then. Taiwan Ferrous Scrap Imports (t) Country Aug % ± vs Jul % ± vs Aug'23 Jan-Aug % ± y-o-y US 102,740 5.31 10.21 856,836 1.85 Japan 22,502 -42.33 -67.48 444,091 -31.64 Australia 4,714 -28.15 -60.99 74,248 -55.62 Dominican Republic 21,952 39.40 57.92 133,572 -17.96 Others 63,338 5.18 54.30 527,058 16.30 Total 215,245 -1.76 -6.19 2,035,805 -10.48 Source: Taiwan customs Send comments and request more information at feedback@argusmedia.com Copyright © 2024. Argus Media group . All rights reserved.
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