China’s CNGR to end investment in nickel JV with Posco

Market: Metals
12/02/25

Major Chinese lithium-ion battery cathode active material (CAM) precursor manufacturer CNGR will terminate investment in a nickel refinery joint venture with South Korean multi-sector company Posco Holdings, it announced today.

The joint venture, Posco CNGR Nickel Solution, will be liquidated after the termination. The decision is part of efforts to reduce investment risks and protect investors' interests in the face of a weak electric vehicle (EV) market.

A slowdown in global EV demand has led to slower growth in battery installations in 2024 compared with a year earlier, South Korean market intelligence firm SNE Research reported.

CNGR and Posco announced plans in June 2023 to build a production facility for nickel and lithium-ion battery precursors in Pohang, South Korea. The plant was intended to have a design capacity of 50,000 t/yr metal equivalent for nickel sulphate and 110,000 t/yr for lithium-ion battery precursors, which was expected to meet demand from 1.2mn units of EVs.

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11/03/25

Mexico’s economy minister in DC for metals tariff talks

Mexico City, 11 March (Argus) — Mexico's economy minister Marcelo Ebrard traveled to Washington DC on Monday to negotiate a resolution to threatened 25pc US tariffs on steel and aluminum imports from his country. Ebrard was joined by deputy minister of foreign trade Luis Rosendo Gutierrez "to meet with US officials and discuss steel and aluminum," the economy ministry said. The visit comes amid uncertainty over how the tariffs will impact Mexico's auto and manufacturing sectors, given the deep integration of supply chains across North America. The president of Mexican automaker association AMIA confirmed the group's support for Ebrard. "This is the first order of business — we are all working to ensure there are no steel tariffs on 12 March, but we'll have to see what happens." US President Donald Trump enacted a blanket tariff of 25pc on all imported goods from Canada and Mexico on March 4. The next day, the Trump administration announced it would exclude from the tariff all goods in compliance with the USMCA free trade agreement between the US, Mexico and Canada for a period ending 2 April. Meanwhile, all goods not in compliance will continue to fall under the blanket 25pc tariff. Furthermore, the Trump administration has said it will impose a global 25pc tariff on all steel and aluminum imports to the US, effective Wednesday, but market sources say there is confusion over how the global metals tariff will interact with the 4 March tariffs. Garza highlighted concerns over how the tariffs could disrupt cross-border trade, noting that auto parts often cross the US-Mexico border multiple times before final assembly. "We're analyzing the potential impact on auto parts that move between Mexico and the US several times, from both the steel export industry's perspective and the final manufacturing side," he said. Ebrard is also presenting Mexico's stance on trade rules under the US-Mexico-Canada (USMCA) free trade agreement, Garza added. "Our interpretation is that companies in the transition-to-compliance process are within the rules," Garza said, referring to a mechanism that allows firms to gradually meet the agreement's rules of origin for duty-free trade. Recent US International Trade Commission data shows that 8.2pc of Mexican vehicle exports and 20.4pc of Mexican auto parts exports currently do not comply with USMCA rules of origin. Mexico exported $106bn in auto parts in 2024, 87pc of which went to the US, according to auto part association INA. Auto industry groups in Mexico are working with their US and Canadian counterparts, compiling data to support Ebrard's negotiations, including potential scenarios for the impact of tariffs on auto prices and production across the trade bloc, Garza said. By James Young Send comments and request more information at feedback@argusmedia.com Copyright © 2025. Argus Media group . All rights reserved.

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Mexican auto exports down 9pc in Feb

11/03/25

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11/03/25

Mexican auto exports down 9pc in Feb

Mexico City, 11 March (Argus) — Mexico's light vehicle exports decreased by 9pc in February, as automakers pointed to weakening demand in the US, their key market. Automakers in Mexico shipped 258,952 units in February, with 84pc bound for the US, according to statistics agency Inegi. Exports were down annually for a second consecutive month, following a 14pc drop in January. Production declined slightly to 317,178 units, a 0.8pc decrease from a year earlier, while domestic sales rose by 3pc to 117,678 vehicles, the same data show. Mexican automaker association AMIA president Rogelio Garza attributed the export slowdown to rising US inflation, which accelerated to 3pc in January from 2.4pc in September. "This increase in inflation automatically affects the domestic market and has lowered demand in the US," Garza said. "If over 80pc of what we send is for US consumption, then when consumption drops, Mexican exports and production fall in tandem." Uncertainty over potential 25pc US tariffs on Mexican goods also contributed to the weaker exports, Garza said. Some companies have paused shipments while awaiting determinations on whether their products qualify for zero tariffs under the US-Mexico-Canada (USMCA) free trade agreement. Separately, Inegi reported 10,248 electric (EV) and hybrid vehicles sold domestically in February, a 29pc annual increase but down by 6pc from January. This marks two straight months of declining sales after a record 15,360 units were sold in December. EVs and hybrids accounted for 9pc of total domestic auto sales in February, up from a 6.5pc share a year earlier but flat from January's 9pc share. Meanwhile, EV and hybrid production surged by 90pc to 16,175 units in February from a year earlier, but fell by 7pc from January. Total output in 2024 reached 169,929 units, a 60pc jump from 2023. By James Young Send comments and request more information at feedback@argusmedia.com Copyright © 2025. Argus Media group . All rights reserved.

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EU changes to HDG, CRC quotas to hit imports

11/03/25

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11/03/25

EU changes to HDG, CRC quotas to hit imports

London, 11 March (Argus) — The European Commission's proposed changes to its import steel safeguard quotas, starting from 1 April, are expected to affect volumes for hot-dip galvanised (HDG) and cold-rolled coils (CRC) because of proposed caps on individual suppliers' access to the "other countries" allocation of 13-25pc depending on product category. For CRC the cap stands at 13pc, impacting key suppliers Vietnam, Taiwan, Japan and Turkey. The new CRC "others" quota volume will total 334,369t in April-June for other countries, which leaves 43,467t per supplier. The change mimics the cap introduced last year on hot-rolled coil (HRC) quotas. The limit for galvanised steel imports are higher, with 20pc cap on 4B auto-grade HDG imports from other countries, with Turkey, Vietnam and Japan identified by the commission as major suppliers. The cap is at 25pc for 4A HDG quotas, impacting Turkey, Vietnam and Taiwan. This would allow each country under other countries to supply 118,012t/quarter of 4A HDG, with the total volume for the quota at 472,049t for the coming quarter. For 4B HDG, the quota for other countries will be 104,770t, leaving 20,955t per country. Remaining volumes from previous quarters will not be carried over starting from 1 July for CRC and 4A HDG, but for 4B HDG quotas, the mechanism will remain in place. In 2024, imports from Vietnam, Turkey, Taiwan and Japan amounted to 2.15mn t for HDG into the EU, including both 4A and 4B categories. In the last quarter of 2024, Vietnamese HDG imports into the EU alone amounted to 321,405t, equivalent to over 56pc of the total other countries quota for that period for 4A and 4B combined. The total volume of 4A and 4B that Vietnam will be able to tap into from April will be just under 140,000t. Reactions from Turkish market participants were mixed today, but expectations are that reduced Vietnamese volumes might aid Turkish sellers of HDG, despite the fact that Turkey will also face the same cap as well as dumping duties. Vietnam has been taking up a large portion of the quota, with the changes now likely to allow more volumes to flow into the EU from other suppliers. Combined CRC volumes in the EU from Turkey, Japan, Taiwan and Vietnam amounted to 1.38mn t in 2024 and in the fourth quarter alone reached 339,909t. This will cut CRC imports sharply as under the current adjustments, other countries will have 43,467 t/quarter allocation each for the April-June period. Initially a more substantial reduction in quota volumes was anticipated, as per European steel association Eurofer's request . With the exception of Vietnamese HDG, the adjustments are not likely to change import volumes drastically, according to market participants. "The cap on CRC and HDG quotas will reduce our exports but we were expecting harsher reductions. We still have our separate allocation for HRC, and we can offset our exports through HRC sales," a Turkish producer commented. "But what will happen to all the new capacities? Volumes could be directed to the local market, challenging domestic producers," a re-roller said. By Elif Eyuboglu Send comments and request more information at feedback@argusmedia.com Copyright © 2025. Argus Media group . All rights reserved.

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EU plate quota caps key suppliers at 110,000 t/quarter

11/03/25

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11/03/25

EU plate quota caps key suppliers at 110,000 t/quarter

London, 11 March (Argus) — The new iteration of the EU steel safeguard quotas will include a 20pc cap on hot-rolled plate imports under the "other countries" quota, which will limit imports from a number of key sellers. The proposed quarterly plate quota stands at about 550,000 t/quarter, which is only slightly lower than current levels, by about 15,000t from January-March. Suppliers such as South Korea, Indonesia and India previously were able to tap into the quarterly volume unrestricted, but now will be limited to 110,000 t/quarter for a total of about 440,000 t/yr. There will no longer be a carryover of unused quota volumes from quarter to quarter for several products including heavy plate. The changes are set to take effect on 1 April unless any objection is lodged by the World Trade Organization. Plate imports into the EU last year amounted to 2.1mn t. Only South Korea exported beyond the new 440,000t threshold, as arrivals totalled 760,000t, leaving 320,000t, or about 42pc of its volumes to the bloc, at risk if exports were to continue at last year's pace. Indonesian and Indian exports to the EU were lower at 420,000t and 410,000t, respectively, last year. If imports from these countries continue at the same pace, the impact on these origins will be minimal. The changes could benefit some suppliers with lower volumes such as Brazil, Japan, North Macedonia and Malaysia, which could potentially step up to substitute some of South Korea's volumes. "I think [South] Korea is the loser indeed, and total imports are more likely to be reduced. This should give a respite to EU producers but competition will increase within Europe as producers will most likely increase their production if they can. I do not see a healthy market ahead," a trading firm said. By Carlo Da Cas Send comments and request more information at feedback@argusmedia.com Copyright © 2025. Argus Media group . All rights reserved.

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New EU steel safeguards quotas softer than Eurofer ask

11/03/25

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11/03/25

New EU steel safeguards quotas softer than Eurofer ask

London, 11 March (Argus) — Amendments to the EU's steel safeguard quotas, after a European Commission review initiated in December, are far less stringent than European steel association Eurofer's requests . The proposed changes will see the total duty-free hot-rolled coil (HRC) quota volume reduced from 1 April to 1.9mn t/quarter, representing a 12.1pc cut quarter on quarter. The reduction is the result of the decision to remove up to 65pc of redistributed Russian volumes, owing to sanctions after the conflict in Ukraine. Those tonnages will also be taken out of the plate, wire rod and hollow sections quotas. The largest cut in volumes on HRC is for India, with duty-free volume falling by around 23pc. In addition, the cap to the "other countries" HRC quota access every quarter is reduced to 13pc from 15pc previously. There is now a cap introduced of 13pc for the cold-rolled coil (CRC) quotas, of 20pc for 4B hot-dipped galvanised and 25pc for 4A HDG allocations, as well as 20pc for rebar. The caps for other products are in a range of 15-30pc. The commission is removing the access to residual quota volumes in the final quarter of the measures' year, April-June for HRC, CRC and 4A HDG. Importers will get up to 30pc access in the 4B residual volumes. There will no longer be carry over of unused quota volumes from quarter to quarter for several products, including HRC, CRC, 4A HDG, plate and wire rod, but the mechanism will remain in place for 4B HDG and rebar. The commission will also reduce the annual quotas liberalisation rate to 0.1pc from 1pc. The latter two changes will be applicable from 1 July — all other changes will be in force from 1 April. There will also be a new 1B quota for HRC for imports under HS code 7212 60 00 with negligible volumes, following crowding out of the highly specific product, identified by one interested party. Notably, there have been very few changes to the developing countries list to which the measures do not apply, with Indonesia, Malaysia, Saudi Arabia, China and Thailand still exempt from the HRC quotas. Eurofer was seeking a 50pc reduction in flat product quotas as well as a 32-41pc increase in the safeguard duty applicable to material outside allocations. It also proposed a melt-and-pour clause on Chinese steel, and a cut in the HRC other countries' cap to 7.5pc, not the 13pc put forward by the commission. Multiple sell-side sources had repeatedly told Argus the changes would be "meaningful", with the commission understanding the plight of European mills. However, the changes are substantially less drastic than those requested by Eurofer. The review has been seen as something of a damp squib by sellers, and even buyers, which were hoping severe import restrictions would help lift prices. A source close to Eurofer said he was "shocked" by the results, and that doors "remain wide open" to imports. Another mill source termed the review a "big fat nothing". The safeguard will run until 30 June 2026 and there will be consultations on the review over 11-18 March. By Lora Stoyanova and Colin Richardson Amended safeguard quota volumes t Proposed allocation 1 April-30 June 2025 Current allocation 1 January-31 March 2025 Change HRC Turkey 397,957 464,843 -66,886 India 225,080 295,144 -70,064 South Korea 161,143 184,309 -23,166 UK 139,271 154,181 -14,910 Serbia 142,378 163,620 -21,242 Other countries 856,769 925,106 -68,337 — European Commission proposal Send comments and request more information at feedback@argusmedia.com Copyright © 2025. Argus Media group . All rights reserved.

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