By Annie Gilroy| 2017-04-11 00:00:00

China’s steel pricesAmong the most dominant factors driving the recent iron ore price rally are higher steel production and the rise of steel prices in China (FXI).We need to see if the same factor will keep iron ore prices buoyant in 2017 as well. The answer lies in the underlying demand trends for steel in China and elsewhere.Outlook: Lower prices?After rising steadily in 2016 and January 2017, Chinese steel prices have come under pressure over the last few weeks. According to data compiled by Antaike, average HRC (hot-rolled coil) prices have fallen almost 10% since their February 2017 highs. China’s Iron and Steel Association (or CISA) thinks the country’s steel demand should fall 1.9% in 2017. This fall would hurt steel prices and, ultimately, iron ore prices.Impact on mining companiesChinese steel prices and seaborne iron ore prices move in tandem. Many analysts believe we could see a moderation in iron ore prices in 2017. Any fall in steel prices could pressure iron ore prices. Also, if global steel prices follow Chinese steel prices down, US steel mills could find it tough to justify higher selling prices, which would be negative for Cliffs Natural Resources.China’s cutbacks in domestic steel production could result in falling iron ore imports from seaborne suppliers such as Rio Tinto (RIO), BHP Billiton (BHP)(BBL), Vale (VALE), and Cliffs Natural Resources (CLF).Source: http://marketrealist.com

By PTI, New Delhi| 2017-04-10 14:47:44

India has already slapped anti-dumping duty on certain cold-rolled flat steel products from four nations, including China and South Korea. (Bloomberg)India may impose anti-dumping duty of up to $0.4 per kg on TDI, a chemical used in foam making, from China, Japan and Korea to guard domestic players against cheap imports.Gujarat Narmada Valley Fertilizers & Chemicals Ltd had filed the application before the Directorate General of Anti- dumping and Allied Duties (DGAD) for initiation of anti-dumping investigations on imports of ‘Toluene Di-Isocyanate’ (TDI).In its preliminary findings, the DGAD has concluded that the chemical was exported from these three countries at below their normal value due to which domestic industry has suffered material injury.The authority has recommended “imposition of provisional anti-dumping duty” to remove the injury to the domestic players, DGAD said in a notification.The suggested duty was ranged between $0.14 per kg and $0.4 per kg.Imports of the chemical from these countries have increased from 30,097 tonnes in 2012-13 to 32,115 tonnes in 2015-16.While DGAD recommends the duty, Finance Ministry imposes it.TDI is used for production of a certain variety of foam, furniture cushion, protective pads for sports and medical use, automobiles seats, packing of electronic items and others.Countries initiate anti-dumping probes to determine if the domestic industry has been hurt by a surge in below-cost imports. As a counter-measure, they impose duties under the multi-lateral WTO regime.Anti-dumping measures are taken to ensure fair trade and provide a level-playing field to the domestic industry. They are not a measure to restrict imports or cause an unjustified increase in cost of products.Unlike the safeguard duty, which is levied in a uniform way, anti-dumping duty varies from company to company and country to country.Source: Hindustantimes

By dw.com| 2017-04-07 00:00:00

While China is trying to define its future trade relations with the US, it's been delivered a broadside from the European Commission. Brussels announced it had raised duties on Chinese steel imports.The EU executive said Thursday it had set anti-dumping duties on imports of hot-rolled flat steel products from China at a higher rate than the preliminary tariffs already in place.The European Commission explained it had set final duties of between 18.1 percent and 35.9 percent for five years for producers including Bengang Steel Plates, Handan Iron & Steel and Hesteel.This compared with provisional rates in place of 13.2 to 22.6 percent, following a complaint by EU producers ArcelorMittal, Tata Steel and ThyssenKrupp.A lot at stakeChina is the world's top producer and consumer of steel. It announced early last year it would shut as much as 150 million tons of annual production capacity over the next five years, but capacity actually rose in 2016.The Commission insisted the higher duties were meant to shield EU steel makers from the effects of Chinese dumping.China's Ministry of Commerce said it was highly concerned by the decision and urged Brussels "to correct its mistake," adding it would take necessary measures to protect its companies.The European Commission said Thursday it had decided not to impose provisional duties on the same product from Brazil, Iran, Russia, Serbia and Ukraine, noting that investigations related to imports from these nations would continue for another six months.Source: http://www.dw.com

By Rakhi Mazumdar| 2017-04-06 10:57:23

KOLKATA: India is poised to emerge as the second largest producer of steel (in the world) by 2018, steel minister Chaudhary Birender Singh has said. Speaking at the National Conference on Secondary Steel Sector in Delhi on Wednesday the minister said the government is keen to boost the domestic steel sector. As part of this initiative, the budget this year had outlined an investment of Rs 4 lakh crore on infrastructure that is expected to raise consumption of steel substantially. "The steel Industry has to become a growth enabler for the manufacturing industry and catalyst for 'Make in India' campaign," he said. While the 'draft National Steel Policy 2017' is going to finalized soon, the government planned to more than double steel production capacity and per capita consumption from the present level, Singh added. In this, secondary steel players will play key role in increasing production and enhancing consumption, he pointed out. The move coincides with the government's plans to make use of domestically produced steel mandatory in government projects. "We intend to adopt the 'Melt & Manufacture' Model of USA for increasing steel production capacity," Singh said adding, worldwide, mini-mills are becoming popular and we want to establish such plants and mills in India." Among the initiatives taken for increasing steel consumption are regional conferences in different parts of the country to disseminate advantages of steel-based structures. The government is also looking at new areas where steel-use can be promoted based on steel's inherent strengths, steel crash barriers, railway sleepers, bridges, roads, houses, buildings, community centres and other such end-use segments are also being explored. The minister said all segments of secondary steel sector should come together under a single apex organisation to collectively present its issues to key stakeholders. Highlighting the importance of the secondary steel sector, he said electric arc furnaces (EAF) and induction furnaces produce 57% of steel, which is more than the integrated steel plants. With addition of production capacities of sponge iron, pig iron, rolling mills, the sector's contribution gets even bigger. Rolling mills in this sector have better market share in regional and some national markets. Also steel plants in secondary sector have many advantages like less land requirement, lower capital investment, better energy efficiency, proximity to users and less dependence on logistics, the minister added. Source: The Economic Times

By VNS| 2017-04-01 15:26:25

The Ministry of Industry and Trade on March 30 officially decided to levy anti-dumping duties on imported coated steel from mainland China (including Hong Kong) and the Republic of Korea (RoK). Accordingly, Bazhou Sanqiang Metal Products will be taxed 26.36%, BX Steel POSCO Cold Rolled Sheet 38.34%, Bengang Steel Plates 27.36%, Tianjin Haigang Steel Coil 26.32%, Hebei Iron & Steel Co Ltd, Tangshan Branch 38.34%, Wuhan Iron and Steel 33.49%. Chinese Yeih Phui Technomaterial was axed at the lowest rate of 3.17%.Korean POSCO will be charged 7.02% anti-dumping tax while other Korean exporters will be taxed 19%.The decision takes effect after 15 days after the signing and will be in place for five years.It follows a December 2015 appeal by four local steelmakers asking the Government for measures to prevent coated steel sheets shipped from mainland China and RoK from being sold at cheap prices.The ministry issued a decision on March 3, 2016 on initiating an investigation of the claims by domestic steelmakers and on September 1, the ministry issued temporary anti-dumping duties on the products.Nguyen Van Sua, vice chairman of the Vietnam Steel Association (VSA), said imported steel from RoK accounted for a small portion of 4.57% during the investigation period in comparison with other imported products, including coated steel for high-end markets of automobiles and electronics. In addition, the price of coated steel imported from RoK was US$85 per tonne higher than that of locally produced steel in Vietnam.Steel exports show optimismVietnam’s import-export report issued for the first time by the Ministry of Industry and Trade in the capital city on March 29 predicts a positive outlook for steel exports as China’s steel exports are expected to decline due to surging demand at home.However, it also notes that the industry faces fierce competition from cheap imported steel, and anti-dumping duties imposed by many countries including the US, Canada, Turkey, Malaysia, Thailand and Indonesia.Since 2007, Vietnam’s steel exports have faced 29 lawsuits, 18 of them for anti-dumping duties.But despite the lawsuits, in 2016, the country’s steel exports rose 36% from the previous year to 3.48 million tonnes worth US$2.03 billion. Prices reached US$580 per tonne, a 12% year-on-year decrease.In recent years, Vietnam’s steel has been mostly exported to ASEAN markets due to high demand. However, exports to ASEAN have dropped due to trade defence measures by importing countries.Last year, steel exports to the region reached only 1.81 million tonnes, 7.3% and 18% less in terms of quantity and value from the previous year.On the other hand, exports surged to certain countries reaching US$568.5 million (up 328%) to the US, US$121.4 million to RoK (up 147.7%), US$33.3 million to Taiwan (up 270%) and US$37.5 million to Pakistan (up 221.5%).Source: http://english.vietnamnet.vn

By Michael Nienaber| 2017-04-01 09:37:05

German Foreign Minister Sigmar Gabriel attends a meeting with Russian President Vladimir Putin in Moscow, Russia, March 9, 2017. Germany urged the European Union on Friday to consider filing a complaint with the World Trade Organization (WTO) against the United States over its plan to impose duties on imports of steel plate from five EU member states.U.S. President Donald Trump is expected to sign executive orders on Friday aimed at identifying abuses causing huge U.S. trade deficits. He is also preparing to meet Chinese President Xi next week in Florida, with contentious trade issues likely to be high on the agenda.Global steel prices have slumped as Chinese producers, who account for about half of the worldwide steel supply, have flooded the export markets, leading to protests and anti-dumping complaints by the United States, the European Union and others.On Thursday, the U.S. Department of Commerce issued a final finding that European and Asian producers dumped certain carbon and alloy steel cut-to-length plate in the U.S. market, allowing it to impose duties ranging from 3.62 percent to 148 percent.Among the affected companies are firms in Germany, Austria, Belgium, France and Italy.Gabriel said the U.S. government seemed prepared to give U.S. firms an "unfair competitive advantage" over European producers even though this violated international trade law."We Europeans cannot accept this. The EU must now examine whether it also files a complaint at the WTO. I strongly support this," Gabriel said. The European Commission, the EU's executive arm, is in charge of trade matters in the 28-member bloc."The WTO rules are the backbone of the international trade order. To deliberately violate them is a dangerous step," he said. "It is the first time that the U.S. in such a case resorts to distorting practices that do not comply with the WTO rules."In Brussels, a spokesman for the European Commission said it regretted the U.S. move to impose anti-dumping measures, adding that the duties were "artificially inflated"."Our comments and notably those concerning the use by the U.S. of methodologies which artificially inflate the preliminary dumping margins have not been given expected consideration," the spokesman said.The final duties were in many cases higher than the preliminary duties set in November. "We will look now into the detail of the decision taken by the U.S. and consider the appropriate steps," he said.THREATGabriel said Germany had to stand up to the U.S. and fight "accounting tricks" that put Germany's internationally competitive steel industry at a disadvantage."If the U.S. got through with unfair competition, other industries would also be subject to the same threat," Gabriel warned.Economy Minister Brigitte Zypries said Germany would, along with the European Commission, continue to campaign for Washington to stick to WTO rules."The signals the U.S. is sending in the steel sector really worry us," Zypries said, adding that she would raise the issue when she visits the United States in May.Cut-to-length steel is used in a wide range of applications, including buildings and bridgework; agricultural, construction and mining equipment; machine parts and tooling; ships, rail cars, tankers and barges; and large-diameter pipes.The U.S. Department of Commerce's finding is the result of a petition from Nucor Corp (NUE.N) and U.S. subsidiaries of ArcelorMittal SA (ISPA.AS) and SSAB AB (SSABa.ST).For Austrian producers and exporters, dumping duties on the Voestalpine group (VOES.VI) and all others were set at 53.72 percent. Among French manufacturers and exporters, duty rates were set at 148.02 percent for Industeel France and 8.62 percent for Dillinger France and all others.In Germany, duties were set at 5.38 percent for AG der Dillinger Hüttenwerke, 22.90 percent for the Salzgitter group (SZGG.DE) and 21.03 percent for all other exporters and producers.The chief executive of Italian steel firm Marcegaglia said the U.S. risked setting off a trade war if it implemented its plans for a border tax, an issue that should be taken to the WTO."And when you start a war you don't know where you will end up," Emma Marcegaglia told reporters in Rome.Marcegaglia said it was still possible that the issue could be resolved through trans-Atlantic negotiations.Italy's industry minister warned that a U.S.-EU trade dispute would hurt growth and global governance at a time when the West needs to show a unified front against unfair trade practices."Any trade clash between the United States and Europe would be dangerous not only for our economies, but also for the rules that govern globalization," Carlo Calenda told reporters.(Reporting by Michael Nienaber in Berlin; Additional reporting by Gernot Heller in Berlin, Philip Blenkinsop in Brussels and Antonella Cinelli in Rome; Editing by Hugh Lawson)Source: Reuters

By Douglas J. Heffner| 2017-03-31 10:07:04

New Antidumping and Countervailing Duty Petitions on Carbon and Alloy Steel Wire Rod from 10 CountriesAntidumping (AD) petitions were filed with the U.S. Department of Commerce (DOC) and U.S. International Trade Commission (ITC) on March 28, 2017, regarding carbon and alloy steel wire rod from Belarus, Italy, Korea, Russia, South Africa, Spain, Turkey, Ukraine, United Arab Emirates, and the United Kingdom. In addition, countervailing duty (CVD) petitions were filed on carbon and alloy steel wire rod from Italy and Turkey.  The petitioners are Gerdau Ameristeel US Inc., Nucor Corporation, Keystone Consolidated Industries, and Charter Steel.The U.S. AD law imposes special tariffs to counteract imports that are sold in the United States at less than “normal value.” The U.S. CVD law imposes special tariffs to counteract imports sold in the United States that benefit from unfair foreign government subsidies. For AD and CVD duties to be imposed, the U.S. government must determine not only that dumping and subsidization is occurring, but also that there is “material injury” (or threat thereof) by reason of the dumped imports.  Importers are liable for any potential AD/CVD duties imposed. In addition, these investigations could impact purchasers, by either increasing prices, and/or decreasing supply of carbon and alloy steel wire rod.ScopeThe merchandise covered by these investigations are certain hot-rolled products of carbon steel and alloy steel, in coils, of approximately round cross section, less than 19.00 mm in actual solid cross-sectional diameter. Specifically excluded are steel products possessing the above-noted physical characteristics and meeting the Harmonized Tariff Schedule of the United States (HTSUS) definitions for (a) stainless steel; (b) tool steel; (c) high nickel steel; (d) ball bearing steel; or (e) concrete reinforcing bars and rods. Also excluded are free cutting steel (also known as free machining steel) products (i.e., products that contain by weight one or more of the following elements: 0. 1 percent or more of lead, 0.05 percent or more of bismuth, 0.08 percent or more of sulfur, more than 0.04 percent of phosphorous, more than 0.05 percent of selenium, or more than 0.01 percent of tellurium). All products meeting the physical description of subject merchandise that are not specifically excluded are included in this scope.The products under investigation are currently classifiable under subheadings 7213.91.3011, 7213.91.3015, 7213.91.3020, 7213.91.3093, 7213.91.4500, 7213.91.6000, 7213.99.0030, 7227.20.0030, 7227.20.0080, 7227.90.6010, 7227.90.6020, 7227.90.6030, and 7227.90.6035 of the HTSUS. Products entered under subheadings 7213 .99.0090 and 7227.90.6090 of the HTSUS also may be included in this scope if they meet the physical description of subject merchandise above. Although the HTSUS subheadings are provided for convenience and customs purposes, the written description of the scope of this proceeding is dispositive.Alleged Dumping MarginsBelarus – 179.07-304.94%Italy – 26.36%Korea – 41.72-53.09%Russia – 216.50-821.40%South Africa – 159.35-164.08%Spain – 32.64%Turkey – 45.10%Ukraine – 21.64-61.64%UAE – 69.57%UK – 88.25%The petitions also allege that the governments of Italy and Turkey are providing countervailable subsidies to producers of wire rod.Estimated Schedule of InvestigationsMarch 28, 2017 – Petitions are filedApril 17, 2017 – DOC initiates AD/CVD investigationsApril 18, 2017 – ITC staff conferenceMay 12, 2017 – Deadline for ITC preliminary injury determinationJune 21, 2017 – Deadline for DOC preliminary CVD determination, if deadline is not postponedAugust 25, 2017 – Deadline for DOC preliminary CVD determination, if deadline is fully postponedSeptember 5, 2017 – Deadline for DOC preliminary AD determination, if deadline is not postponedOctober 24, 2017 – Deadline for DOC preliminary AD determination, if deadline is fully postponedMarch 8, 2018 – Deadline for DOC final AD and CVD determinations, if both preliminary and final AD determinations are fully postponed and CVD deadline is alignedApril 23, 2018 – Deadline for ITC final injury determination, assuming fully postponed DOC deadlinesSource: The National Law Review

By Eric Thayer| 2017-03-31 00:00:00

U.S. Commerce Secretary Wilbur Ross holds a news conference at the Department of Commerce in Washington, D.C., U.S. March 10, 2017.The U.S. Department of Commerce made a final finding that seven foreign producers dumped certain carbon and alloy steel cut-to-length plate in the U.S. market, allowing it to impose duties ranging from 3.62 percent to 148 percent, Commerce Secretary Wilbur Ross said on Thursday.The determinations of dumping, or selling a product below its fair price, apply to imports of CTL plate from Austria, Belgium, France, Germany, Italy, Japan, South Korea and Taiwan, Ross said.In addition, there was a final finding that South Korean imports were subsidized, leading to a countervailing duty of 4.31 percent being slapped on those products, he said at a department event."A healthy steel industry is critical to our economy and manufacturing base, yet our steel industry today is under assault from foreign producers that dump and subsidize their exports," Ross told the audience.In 2015, imports of CTL plate from the seven producers totaled $732 million, with those from Austria, Belgium, France, Germany, Italy, Japan, Korea and Taiwan valued at an estimated $14.2 million, $19.8 million, $179 million, $196.2 million, $37 million, $54.9 million, $210 million and $21 million, respectively, department figures show. (bit.ly/2mSZM1Z)Cut-to-length steel is used in a wide range of applications, including buildings and bridgework; agricultural, construction and mining equipment; machine parts and tooling; ships, rail cars, tankers and barges; and large-diameter pipe.The finding followed an investigation prompted by a petition from Nucor Corp and U.S. subsidiaries of ArcelorMittal SA and SSAB AB.For Austrian producers and exporters, dumping duties on the Voestalpine group and all others were set at 53.72 percent.They were 5.4 percent for Industeel Belgium, 51.78 percent for the NLMK Belgium group and 5.4 percent for all other Belgium producers and exporters.Among French manufacturers and exporters, duty rates were set at 148.02 percent for Industeel France and 8.62 percent for Dillinger France and all others.In Germany, duties were set at 5.38 percent for AG der Dillinger Hüttenwerke, 22.90 percent for the Salzgitter group and 21.03 percent for all other exporters and producers.A spokesman for Salzgitter confirmed the company was facing duties, saying the decision to impose the duties and the level of them were incomprehensible.In Italy, the department set anti-dumping duty rates of 6.08 percent for Officine Tecnosider, 22.19 percent for Marcegaglia SpA and NLMK Verona SpA and 6.08 percent for all other producers and exporters.Among Japanese producers and exporters, Tokyo Steel Manufacturing Co Ltd was hit with a duty rate of 14.79 percent. A rate of 48.67 percent was imposed on JFE Steel Corp and Shimabun Corp, and for all others it was set at 14.79 percent.Taiwanese companies Shang Chen Steel Co Ltd and China Steel Corp had anti-dumping duties of 3.62 percent and 6.95 percent, respectively, imposed on them. The rate for other producers and exporters was set at 5.29 percent.For South Korea, the department imposed an anti-dumping duty of 7.39 percent on POSCO, as well as a countervailing duty of 4.31 percent to account for subsidies. The same rates apply to all other producers and exporters.The findings allow the department to ask U.S. Customs authorities to collect cash deposits from exporters based on those rates.On March 3, in a decision stemming from the same investigation, the U.S. International Trade Commission said it had made a final finding that U.S. industry was being harmed by the dumping and subsidization of imports of carbon and alloy steel CTL plate from China. That allows for the final imposition of duties by the Commerce Department on China's producers and exporters of the plate.(Reporting by Eric Walsh; Additional reporting by Georgina Prodhan; Editing by Dan Grebler and Peter Cooney)Source: Reuters

By Joseph S. Pete| 2017-03-30 09:03:04

Great Lakes steel production dropped to 666,000 tons last week, down by 1.3 percent from 675,000 tons of output the previous week.So far this year, U.S. steelmakers have produced 20.8 million tons of steel, about 4.4 percent more than they did during the same period in 2016.Domestic steelmakers used about 72.8 percent of their steelmaking capacity in the week that ended March 25, down from 73.7 percent the previous week, according to the American Iron and Steel Institute. That was up from 72.1 percent during the same time period in 2016.Overall U.S. steel output fell by 22,000 tons last week to 1.72 million tons, a 1.2 percent decrease, according to the American Iron and Steel Institute.Output in the Southern District, the second largest steel-producing region which spans mini-mills across the South, dropped to 594,000 tons last week, down from 616,000 tons the previous week. Source: American Iron and Steel Institute

By Financial Review| 2017-03-28 00:00:00

Iron ore fell, extending its retreat from its February peak to 14 per cent, as ore stockpiles at Chinese ports edge ever higher and concerns about steel demand push speculators to exit at least some of their positions.The spot price of iron ore dropped 4.1 per cent to $US81.57 a tonne at its Monday fix, according to Metal Bulletin. The steel-making raw material shed 7.9 per cent last week. The price has now fallen 14 per cent since peaking at $US94.86 on February 21.The price reversal reflects a continuing build of iron ore stockpiles in China and concerns that steel demand will slow as the overall economy's upward momentum fades.According to the latest weekly Shanghai SteelHome survey, iron ore inventory at 46 Chinese ports rose 1.45 million tonnes or 1.1 per cent to 132.45 million tonnes on March 24. While hot rolled coil steel inventory at 24 big Chinese cities dipped 0.3 per cent to 2.9323 million tonnes, in the March 24 week, cold rolled coil steel inventory surged 6.5 per cent to 1.481 million tonnes.Hot rolled coil prices in China, which are typically higher than those for rebar, have fallen much lower in comparison, according to Metal Bulletin. This reversal is dampening sentiment in the steel market in a big way, affecting trade of finished steel and raw materials, according to industry observers.In East China, HRC prices fell 130-150 yuan ($US19-22) per tonne to 3290-3330 yuan ($US478-484) per tonne during the day, Metal Bulletin reported, while those for rebar dipped by just 20-30 yuan ($US3-4) per tonne to 3590-3630 yuan ($US522-527.50) per tonne."There is a real risk that by the end of the year the economy could be looking quite a bit weaker," said Julian Evans-Pritchard, an economist at Capital Economics in Singapore, the current quarter may prove to be as good as it gets amid policy tightening and slower credit growth.As for futures, Chinese steel and iron ore futures are now at their lowest in more than six weeks.The most-active rebar contract on the Shanghai Futures Exchange closed down 2.9 per cent at 3057 yuan ($US444.57) per tonne.During the session, it fell as far as 3003 yuan, its lowest since February10 as funds and other speculative investors exited long positions and placed fresh bearish bets."China's steel market is showing signs of price weakness and the move of (hot-rolled-coil) prices into a discount relative to domestic rebar prices is a sign of further weakness ahead," said Barclays Capital."We feel that there is further downside risk for the benchmark (iron ore) price."Iron ore traded on the Dalian Commodity Exchange slid 1.8 per cent to 548 yuan.The bank expects the spot price of iron ore to average $US70 per tonne in the second quarter, down from around $US80 currently.The latest sell-off threatens the months-long rally and was triggered by concerns about demand from the building sector after Beijing imposed fresh curbs on lending in real estate in China last week.Source: http://www.afr.com