By The Economic Times| 2017-03-27 14:07:38

The government has resumed investigations into circumvention of anti-dumping duties after a stay order was vacated recently by court. The products originate from China, Korea, EU, South Africa, Taiwan, Thailand and the US.NEW DELHI: India may impose anti circumvention duty on certain stainless steel products originating from seven destinations to insulate domestic players.The government has resumed investigations into circumvention of anti-dumping duties after a stay order was vacated recently by court. The products originate from China, Korea, EU, South Africa, Taiwan, Thailand and the US.The government has resumed the investigations into circumvention of anti-dumping duties on cold-rolled flat products of stainless steel widths from 600 mm to 1,250 mm after the stay order was vacated.The probe was initiated in February last year by the Directorate General of Anti-Dumping and Allied Duties (DGAD), under the Commerce Ministry, on a complaint by Jindal Stainless, but it was stayed on April 27, 2016, by the Delhi High Court. The stay was vacated on March 8, 2017.Earlier in a notification, the DGAD had stated that it has sufficient evidence of circumvention of anti-dumping duties leviable on cold-rolled flat products of stainless steel originating from these seven destinations.The probe would determine the existence, degree and effect of the alleged circumvention and would also examine the need to extend the existing anti-dumping duty to the circumventing products.It was alleged that the existing anti-dumping measures imposed in 2010, and amended later, are being circumvented.In December 2015, India had imposed anti-dumping duty of up to 57.39 per cent on import of the products from China, Korea, the US and EU for five years to save the domestic industry from cheap shipments.Source: The Economic Times 

By Commodity News| 2017-03-23 10:10:15

With iron ore prices on a rise and domestic demand likely to pick up by mid-April, steel producers have already raised product prices by Rs 1,000 per tonne from 15, March and are gearing up for another hike by the same quantum from April. This time most of the companies, according to the source, are raising prices."Domestic steel firms at a closed-door meeting held 10 days ago have come to an understanding to unanimously raise product prices for April by another Rs 1,000 per tonne,” a source close to the development told Business Standard.Domestic steel companies have raised prices by about 70 percent since imposition of minimum import price (MIP) in February 2016. Though prices were raised by Rs 3,000 per tonne in January, most companies had to roll back the hike in the following month either partially or completely as the market was unable to abosrb the revision due to weak demand. However the confidence of companies that now consumers will digest higher prices seems to have been back and producers strategies are paying off."There has been a hike of Rs 1,000 per tonne in mid- March and going ahead we will be raising product prices in line with the industry,” a source with Essar Steel said.JSW Steel, Tata Steel, Steel Authority of India, Bhushan Steel, Essar Steel, Jindal Steel & Power, and Rashtriya Ispat Nigam are among the top producers of the alloy in the domestic market."Price revision decisions are taken depending upon market dynamics and no meeting between steel producers was held to discuss prices,” said Jayant Acharya, director commercial at JSW Steel. “Having said that, with international and iron ore prices having moved up in the last few months, we will be taking a call on product price hikes later in the month. No decision has been taken as of now,” he added.Steel industry is seeing a demand pick up post UP elections mainly in the construction segment along with auto and white goods sectors which were hit due to demonetisation. In the last few months, as domestic steel demand failed to pick up and producers had to export the alloy in order to maintain margins and maintain the raised capacity utilisations. Average capacity utilisation of domestic steel industry has moved to 85 per cent from 75 per cent earlier.As per Joint Plant Commitee data, India’s Apr-Feb exports of steel have jumped 78 per cent on year-on-year basis to 6.62 million tonne, while imports have crashed nearly 40 per cent to 6.59 million tonne. Steel production for sale has increased 11 per cent to 92 million tonne, while consumption was at 76.22 million tonne, up 3.4 per cent from last year.From the data available, India has emerged as a net exporter of total finished steel in February as well as April-February.Source: Business Standard

By Raul de Frutos| 2017-03-22 00:00:00

U.S. Cold rolled-coil prices rose to their highest levels since March of 2012 this week. Spot steel prices saw some upward action in January, however, prices really came under pressure in early February.In March, U.S. steel mills are pushing for another round of price hikes. So far, they seem to be succeeding.China Steel PricesBack in November, we predicted a surge in steel prices as we moved into the new year. When international steel prices rise, U.S. mills can more easily justify a price hike. Chinese prices set the floor for international prices. Last summer, U.S. steel prices declined sharply while Chinese prices held well. That caused the international price arbitrage to come down to normal levels.The price arbitrage started to widen again this year as momentum in U.S. steel prices picked up. However, the arbitrage is still relatively narrow compared to historical levels, especially in hot-rolled coil. Therefore, U.S. mills still have some room to hike prices. Still, for the rally to be sustained throughout the year, Chinese steel prices will need to keep rising.Falling Chinese Steel ExportsIn January, Chinese steel exports fell near 24% compared to the same month last year. In absolute terms, January steel exports were at their lowest level since June 2014. Exports fell by double digits in the last four months of 2016. While more countries act against the threat of a flood of Chinese steel, we could see further moderation in exports this year, which bodes well for global steel markets. What’s surprising is that exports have falling despite rising output.According to the data released by the World Steel Association, China’s January steel production rose 7.4% to 67 mmt while global steel production rose 7% from a year ago. In addition, China’s operating steel capacity increased in 2016, since most of the announced cuts in capacity were already idle.So far, solid demand in China has absorbed the increase in output, or at least most of it. The Caixin Manufacturing PMI in China rose to 51.7 in February, beating market expectations and marking the eighth-straight month of growth. In addition, there are rumors that China is stocking its excess steel production. According to SteelHome, hot-rolled coil and rebar inventories in China have surged so far this year.All About Production CutsIn conclusion, U.S. mills could continue to raise prices in the short-term. However, for a sustained bull market in steel prices, Chinese steel prices will have to rise as well. China’s domestic demand looks strong, but it won’t be enough to support a rising price trend in the face of rising output.Beijing has ordered curbs on steel and aluminum output in as many as 28 northern cities during the winter heating season, as it steps up its fight against pollution, but we need to see if those cuts actually materialize this year. China will need to intensify its efforts to curtail excess steel capacity. Otherwise, if production continues to grow unabated, it could hamper this price recovery.

By Masumi Suga and Ichiro Suzuki| 2017-03-21 00:00:00

Global steel mills shouldn’t fret about the chances of Chinese exports torpedoing prices this year in a rerun of 2015, according to the managing director of Japan’s biggest producer of recycled steel.Strong domestic demand in China and cuts in production capacity are leading to a more balanced market, said Kiyoshi Imamura from Tokyo Steel Manufacturing Co. The nation is building roads, railways and warehouses to bolster expansion, and shutting illegal and inefficient mills that cause pollution, he said in an interview. New service industries like online shopping can help absorb workers that lose their jobs, he added."China won’t trigger an imbalance of supply and demand, at least this year,” Imamura said in Tokyo on March 14. “I strongly feel that prices won’t go back to the previous levels because of China overproducing steel,” he said. The nation accounts for about half of global supply.The country has started the year on a firm footing, with macro data showing fixed-asset investment rising 8.9 percent in January and February from a year ago, and industrial output increasing 6.3 percent. The benchmark price of domestic hot-rolled coil in China has jumped 60 percent in the past year, and Imamura sees the metal staying at current levels of $500 to $600 a metric ton.Back in 2015, coil prices slumped 33 percent as Chinese exports of steel surged to a record 112 million tons. The deluge hurt global steel mills and prompted countries from India to the U.S. to introduce import tariffs. It even reached the level of a meeting of G-20 countries, which agreed to set up a group to address overcapacity.Imamura visited four areas in China in December -- Jinan, Chongqing, Shanghai and Wuxi -- to study the market. In meetings with the industry and users, he says he was inspired by the development of the economy and manufacturing. While the media often highlights the woes of steel ghost towns, he said the metal was in shortage in most regions. “It’s something similar to situations in Japan’s economic boom of 1960s and 1970s,” Imamura said.Like most mills, Tokyo Steel has benefited from the price rally. The shares are up 38 percent in the past year, outperforming a 20 percent gain in Japan’s top producer, Nippon Steel & Sumitomo Metal Corp.Tokyo Steel last raised prices in February, which was for a third month in succession. On Tuesday, it said it will maintain its prices for April, even as low inventories at home and abroad had created a favorable supply-demand balance. Its shares dropped as much as 4.9 percent.At a briefing in Tokyo, Imamura said the pause in prices is because the market hadn’t caught up with previous hikes, but that a tighter Chinese market is having a big impact globally.Tokyo Steel operates electric-arc furnaces that take scrap as feed-stock, while the largest steelmakers, including Nippon Steel, use iron ore and coking coal. High-end steel is typically made from iron ore and supplied for cars and electronic devices. Steel from scrap is used mostly in construction and the process emits far less carbon dioxide, according to the company.Before it's here, it's on the Bloomberg Terminal.Source: www.bloomberg.com 

By Kevin Yao/Tom Hogue| 2017-03-20 00:00:00

Workers direct a crane lifting newly made steel bars at a factory in Dalian, Liaoning province, China, October 13, 2015. REUTERS/China Daily/File PhotoChina should not be singled out in a fight against excess steel capacity that requires stronger global cooperation, Wang Shouwen, a vice commerce minister, said on Saturday."When we are talking about overcapacity in the steel sector, China should not be singled out. This is a global issue, this is a cyclical issue," Wang told the China Development Forum in Beijing.China is both the world's biggest steel producer and consumer, and its steel sector has been under particular scrutiny. Chinese mills have been subject to increasing numbers of anti-dumping moves by international rivals amid accusations that they have been selling at less than cost and forcing foreign competitors out of business.President Donald Trump's choice for top U.S. trade negotiator on Tuesday pledged an "America First" strategy to enforce U.S. laws and trade deals to stop unfair imports and push China to scrap excess factory capacity.China has recognized the seriousness of overcapacity problems in some industries and has been trying to deal with the issue, while some other countries have been "just talking and watching", Wang said without making specific reference to the U.S. comments or elaborating further.China is facing growing trade frictions with its trade partners, he noted, but he shrugged off criticism about the country's trade practices. Major economies should tackle overcapacity problems in a concerted manner, he said.China has announced plans to slash another 50 million tonnes of steel capacity this year, on top of the 65 million tonnes removed last year. Many of the plants closed last year were already idled, however, and output from the still-open plants actually rose 1.2 percent to 808.4 million tonnes.China will continue to open up its economy to foreign investors and promote globalization, which is facing risks from "populism, conservatism and protectionism", Wang said.(Reporting by Kevin Yao; Editing by Tom Hogue)Source: Reuters

By Jatindra Dash| 2017-03-20 00:00:00

South Korean steelmaker POSCO has asked the eastern state of Odisha in India to take back the land it was allotted for a $12 billion steel project as it has not been able to start work, two senior state officials said.This could be a sign the world's fourth-biggest steelmaker was scrapping the proposed 12 million-tonnes-a-year steel plant, although POSCO said on Sunday that its move to return the land did not mean it would cancel the long-delayed project.POSCO said it had expressed its intention to give back the land because it "will not be used urgently"."That has nothing to do with whether we withdraw the project," a POSCO spokesman in Seoul said in a statement.POSCO offered to surrender the land in a letter to the Odisha Industrial Infrastructure Development Corporation (IDCO), a state government agency that arranges to make industrial plots available to companies. The state government had leased about 2,700 acres of land to POSCO."Posco has asked us to take back the land as it could not utilize it as per the lease deed condition," IDCO's chief general manager for land management, Susanta Kumar Mohanty, told Reuters on Saturday.State Industry Minister Debi Prasad Mishra said the land earmarked for the project will now go into the IDCO land bank.The 2005 project was billed as India's biggest foreign direct investment at that time, but it has faced several delays due to a regulatory maze and protests from the local farmers.A mining law enacted by the federal government in 2015 made it mandatory for the company to buy a mining license for captive mines in an auction. Originally, the Odisha government had promised to help the company obtain the license for free.(Reporting by by Jatindra Dash; Additional reporting by Hyunjoo Jin in SEOUL; Editing by Tom Hogue and Himani Sarkar)Source: Reuters

By Joseph S. Pete| 2017-03-16 09:48:55

Great Lakes steel production rose to 694,000 tons last week, up slightly from 689,000 tons of output the previous week. So far this year, U.S. steelmakers have produced 17.38 million tons of steel, about 4.7 percent more than they did during the same period in 2016. Domestic steelmakers used about 75.6 percent of their steelmaking capacity in the week that ended March 11, up from 74.3 percent the previous week, according to the American Iron and Steel Institute. It was also up from 72.1 percent during the same time period in 2016 but remains well below the 90 percent capacity utilization some analysts consider as healthy. Overall U.S. steel output ticked rose by 31,000 tons last week to 1.79 million tons, a 1.7 percent increase, according to the American Iron and Steel Institute. Output in the Southern District, which spans mini-mills across the South, rose to 641,000 tons last week, up from 627,000 tons the previous week. Source: American Iron and Steel Institute

By Huang Mingrui| 2017-03-15 13:14:08

China's steel and iron ore futures prices have rebounded since the start of the year following a pickup in demand to coincide with rising domestic industrial production and infrastructure spending. The most traded iron ore contract for May delivery jumped 4.25 percent to 687 yuan ($99) per ton yesterday, the biggest gain among commodities. Since the start of the year, the price has jumped 28.7 percent. Rebar futures rose 3.84 percent to 3,594 yuan per ton, up 26 percent from the year's first trading day. Steel consumption has rebounded to "further support the futures price increase," Chen Kexin, analyst at Lange Steel Information Center, a domestic steel consulting company. He said China's crude steel consumption over the past two months jumped 11.6 percent from a year ago to 117.2 million tons. "Investors are optimistic about the steel industry amid the nation's policies to increase steel use," Chen added. China has called for construction expansion since the start of the year. Infrastructure spending on public facilities, water conservation projects and transport surged 27.3 percent over the first two months from the same period a year ago, said the National Bureau of Statistics yesterday. Source: Shanghai Daily

By KEVIN L. KEARNS| 2017-03-14 15:26:56

America cannot be a great power without a vibrant steel industry. Steel is the lifeblood of a healthy, wealth-creating manufacturing economy. That’s why every major industrial country goes to great lengths to support its steel sector — except perhaps the United States. There a gaping crevice between government attitudes and industry needs largely because of our traditional laissez-faire, hands-off approach to business, which is in fact both outdated and short-sighted given the globalization of our economy.  Case in point: U.S. Steel, a 116-year-old company that is one of the nation’s premier manufacturers.  U.S. Steel is a highly efficient, high-tech operation — not your grandfather’s smokestack company.  It runs four top-notch R&D centers whose job is to produce breakthroughs in new steel types and process for future needs.  Among other advances, U.S. Steel spent millions of dollars in recent years to pioneer a new, lighter, higher-grade steel product for use in automobiles and elsewhere — just what competitive American companies are supposed to do.  But there’s a kicker.  As is increasingly the case, the Chinese hacked the firm’s computers and stole the advanced formula.  And now, surprise, a Chinese firm, Baosteel, is selling a similar high-tech steel in the U.S. — and at such a cut-rate price that U.S. Steel can’t match it. It’s a pretty galling situation for U.S. Steel and its employees, especially when the rival product retails so cheaply thanks to billions of dollars in subsidies that Beijing funnels to its steelmakers.  These subsidies are illegal under world trade law — so Beijing should be prohibited from engaging in such practices. How does U.S. Steel remedy the situation? Turns out that it is not so easy.  Even as a big U.S. multinational company, U.S. Steel is essentially David fighting the Chinese Goliath, given all the illegal support China provides its steel companies.  That means that the U.S. government has to come into play.  But it does so only through specialized "trade courts."  U.S. Steel, like so many other companies and industries fighting foreign predatory trade practices, has little recourse but to file a time-consuming, money-draining trade case at the U.S. International Trade Commission (ITC) — while continuing to lose market share to foreign competitors. So off to the ITC with a Section 337 complaint — in which the company seeks relief in three areas: the theft of trade secrets, antitrust violations (the Chinese steel industry colluding illegally to fix steel prices), and false designation (transshipping Chinese steel through third countries to hide its origin).  The trade case asks that the ITC to put a halt to illegal Chinese practices through various sanctions. The most complex part of the case is U.S. Steel’s assertion that the Chinese stole proprietary technology, because the likely actor is not Baosteel but the Chinese government itself, which is not named as a party to the case.  U.S. trade law does not contemplate collusion between a foreign government and its industry in cyber-hacking commercial trade secrets.  The phase of U.S. Steel’s case known as "discovery" could, if allowed by the ITC, provide unprecedented access and insights into the operations of the Chinese government and its interactions with Chinese companies to win market share worldwide through illegal practices.   U.S. Steel is trying to push the envelope of existing trade law to cover this very modern form of theft. What hampers the case is the fact that it must use statutes that were enacted long before the Internet age and haven’t been updated to consider cyber espionage. As things currently stand, this bold, inventive legal strategy to cover 21st century practices with aging laws led to a "bridge too far."  U.S. Steel decided to withdraw the trade secrets portion of the 337 case, and preserve its right to continue at a later time, rather than have the ITC dismiss it due to antiquated U.S. trade law.  The company noted in a statement that Section 337 is a "decades old law” that “never contemplated the technological advancements over the past 50 years that have led to the proliferation of cyber theft and other cyber-crimes committed against American companies.” U.S. Steel will continue to pursue its case related to antitrust and false designation.  But much damage has already been done, and the burden continues to be borne by the injured company, with consequences for tens of thousands of livelihoods.  Where U.S. Steel and other industries are concerned, there is simply not adequate government help at present to address the unfair competition posed by cyber-hacking. Congress has not done its job to keep U.S. trade law current. This means both the Trump administration and Congress should now scramble to address current, unfair global business practices, especially when involving foreign governments and cyber-hacking. In particular, it’s time for Washington to cooperate fully with the private sector to confront malicious cybercrimes and to provide reasonable, expeditious legal remedies. The future of many American companies and jobs is on the line. Kevin L. Kearns is president of the U.S. Business & Industry Council, a national business organization advocating for domestic U.S. manufacturers since 1933. Source: http://thehill.com

By Ruby Lian and Josephine Mason| 2017-03-14 15:11:57

China's steel output in the first two months of 2017 rose 5.8 percent from the same period a year ago, data showed on Tuesday, as mills boosted production amid higher prices and firm demand as Beijing moves to cut excess capacity in the sector. China's steel output for January and February combined rose to 128.77 million tonnes, the National Bureau of Statistics (NBS) said. The NBS provided information for January and February together to smooth the impact of the Lunar New Year holiday, and did not give a separate monthly breakdown. Steel output gained this year as China's policy to shut excess steel production has pushed up prices for lower-quality rebar, used mainly in construction. Rebar futures on the Shanghai Futures Exchange SRBcv1 have climbed 23 percent since the beginning of this year. Steel mills are currently making a profit of up to 800 yuan ($115.74) a tonne by producing rebar, the strongest level since 2011, analysts said. "Production in the first two months of last year was low as soft prices discouraged mills to produce. But high profits has driven mills to churn out more metal," said Qiu Yuecheng, an analyst with the steel trading platform Xiben New Line E-Commerce in Shanghai. China, the world's top steel producer, started the policy to shut output last year and for 2017 plans to cuts 50 million tonnes of capacity as the world's No. 2 economy deepens efforts to tackle pollution and curb excess supply. China produced 808.4 million tonnes of crude steel output in 2016, up 1.2 percent. (Reporting by Ruby Lian and Josephine Mason; Editing by Christian Schmollinger) Source: Reuters