UK steel safeguard could lapse this month
The UK steel safeguard could lapse at the end of this month, and another safeguard could not be implemented for six years under World Trade Organisation rules.
UK business and trade minister Kemi Badenoch has not yet accepted the UK Trade Remedies Authority's (TRA) recommendation to extend the safeguard, which will lapse on 30 June. Should the recommendation not be accepted, no safeguard would be in place on 1 July and steel from anywhere in the world could be shipped to the UK market without quota.
The TRA published its final determination and recommendation on 19 April. The Department for Business and Trade refused to comment on the minister's decision before it has been taken.
The lead time to July is too short to result in a wave of imports, but the timing is inopportune — the European Commission's 15pc cap on individual countries within the other countries quota could mean that distressed material makes its way to the UK to avoid 25pc duties.
"It is absolutely essential that this deadline is met to avoid detrimental consequences to the UK steel sector," industry association UK Steel's trade and economics policy manager, Chrysa Glystra, told Argus. "As we are in the final countdown, the sector's anxiety around the decision is increasing. We see no possible justification for not accepting the TRA's recommendation and extending the measure," Glystra said.
Indian firm Tata Steel, which has production assets in the UK, said the measures lapsing would have "severe, irreversible consequences for the UK steel industry", and that it is "essential" that the minister approves the recommendation before 30 June.
Related news posts
LME fob China HRC volumes hit multi-year high
LME fob China HRC volumes hit multi-year high
London, 23 July (Argus) — Ongoing weakness in Chinese hot-rolled coil (HRC) prices has sparked a flurry of trading on the London Metal Exchange's (LME) fob China HRC contract this month. More than 100,000t will trade this month for the first time since summer 2020, according to exchange data. Physical Chinese prices have been plumbing new lows recently amid tepid domestic and export demand. Argus ' fob China HRC index, cash-settlement basis for the LME contract, dropped by $3/t today to $497/t, its lowest since August 2020. Asian export offers also appear to have dropped, with a Vietnamese quote tabled around $20/t lower today into the UK. A 5,000t trade went through on the LME today at $498/t for August, following softening physical and raw material costs — the blast furnace raw material basket has dropped by around $25/t over the course of July, and in a buyers' market sellers are expected to pass this reduction off. There is increased talk that China will look to clamp down on steel exports where value-added tax (VAT) has not been paid, but market participants note the last attempt fell flat, and volumes have not reduced much. During January-June this year the world's largest producer exported 15.6mn t of HRC, compared with 10.4mn t over the first six months of last year, and a record 23.9mn t over the year as a whole. "In line with the growth in Chinese steel exports, in recent months we have seen renewed activity in the LME steel fob China HRC ( Argus ) futures contract from across the global value chain," LME product specialist steel and nickel Alberto Xodo told Argus . Interest has stemmed from major Chinese exporters, steel merchants in Europe and Singapore, as well as industrial groups in southeast Asia and the Middle East, he added. By Colin Richardson Send comments and request more information at feedback@argusmedia.com Copyright © 2024. Argus Media group . All rights reserved.
India 2024-25 budget waives duties on critical minerals
India 2024-25 budget waives duties on critical minerals
Mumbai, 23 July (Argus) — India will reduce or remove custom duties for 25 critical minerals and blister copper but the government is maintaining its tax on copper scrap. A full list of the 25 critical minerals was not announced but India's finance minister Nirmala Sitharaman said in her 2024-25 fiscal year budget speech today that lithium, copper, cobalt and rare earths are crucial for sectors like nuclear energy, renewable energy, space, defence, telecommunications and high-tech electronics. Out of the 25 critical minerals to be exempt from the custom duties, 23 will be fully exempt and two will have their duty cut. The Indian government is also launching a critical mineral mission aimed at strengthening the supply chain for essential minerals. This is to encourage the private and public sectors to boost their long-term competitiveness. Customs duties on precious metals like gold and silver have been reduced to 6pc, while platinum is cut to 6.4pc. India has waived the 2.5pc basic customs duty on ferro-nickel to enhance the domestic production cost efficiency of stainless steel, with it currently import dependent to meet domestic demand. The concessional customs duty on copper scrap remains at 2.5pc, while the duty on blister copper has been reduced to zero from its previous 2.5pc. This adjustment aims to support the copper industry by reducing imports. The government has continued the zero custom duty on ferrous scrap and nickel cathode in a bid to support to achieving net-zero carbon emissions. A carbon market will be set up for India's hard-to-abate steel and cement sector, Sitharaman said. The government is working towards launching a domestic compliance carbon market by the end of this year to ensure firms keep to their greenhouse emissions intensity targets, the Carbon Markets Association of India told Argus in May. By Deepika Singh Send comments and request more information at feedback@argusmedia.com Copyright © 2024. Argus Media group . All rights reserved.
US House to vote on waterways bill
US House to vote on waterways bill
Houston, 22 July (Argus) — The US House of Representatives is expected to vote on 22 July on a waterways bill that would authorize new infrastructure projects across ports and rivers. The Water Resources Development Act (WRDA) is renewed typically every two years to authorize projects for the US Army Corps of Engineers (Corps). The bipartisan bill is sponsored by representative Rick Larsen (D-Washington) and committee chairman Sam Graves (R-Missouri). The full committee markup occurred 26 June, where amendments were added, and the bill was passed to the full House . A conference committee will need to be called to resolve the different versions of the bill. The major difference between the bills is that the House bill does not include an adjustment to the cost-sharing structure for the lock and dam construction and other rehabilitation projects. The Senate Committee on Environment Public Works passed its own version of the bill on 22 May, with all members in favor of the bill. The House version of the bill approves modifications to the Seagirt Loop Channel near the Baltimore Harbor in Maryland, along with 11 other projects and 160 feasibility studies. One of these studies is a $314.25mn resiliency study of the Gulf Intracoastal Waterway, which connects ports along the Gulf of Mexico from St Marks, Florida, to Brownsville, Texas. By Meghan Yoyotte Send comments and request more information at feedback@argusmedia.com Copyright © 2024. Argus Media group . All rights reserved.
India’s MRAI urges zero import duty on Al scrap
India’s MRAI urges zero import duty on Al scrap
Mumbai, 18 July (Argus) — The Material Recycling Association of India (MRAI) has urged the government to remove import duties on aluminium scrap in its budget to be presented on 23 July. "Among the key challenges faced by the Indian aluminium recycling industry is paying [a] 2.5pc import duty on aluminium scrap," MRAI said in a letter to India's finance minister Nirmala Sitharaman. "It is a key raw material for aluminium recycling and the government should make it zero until the quality material is available in sufficient quantity in the domestic market." The government has a duty to create a level playing field between primary and secondary aluminium producers, said MRAI president Sanjay Mehta. "If customs duties are applicable on import of scrap, then commensurate export duties on the basis of total cost to country on primary products should also be levied." India does not have sufficient supplies of good quality metal scrap to support its recycling industry and relies heavily on imports. The current import duty system, coupled with the lack of aluminium scrap in India, reduce Indian producers' competitiveness in global markets because most other countries have no import duty on metal scrap. This could decelerate the country's effort to achieve its sustainability goals, added MRAI senior vice-president Dhawal Shah and the managing director of CMR Green Technologies Mohan Agarwal. India imported 1.83mn t of aluminium scrap in 2023 with more than a quarter coming from the US. Europe, the Middle East and north Africa are its other key suppliers. By Deepika Singh Send comments and request more information at feedback@argusmedia.com Copyright © 2024. Argus Media group . All rights reserved.
Business intelligence reports
Get concise, trustworthy and unbiased analysis of the latest trends and developments in oil and energy markets. These reports are specially created for decision makers who don’t have time to track markets day-by-day, minute-by-minute.
Learn more