By Sankalp Phartiyal/Subhranshu Sah| 2017-02-08 11:11:28

MUMBAI (Reuters) – Tata Steel Ltd reported its first profit in five quarters on Tuesday helped by higher sales of industrial products and steel for the auto sector and a rise in exports despite India’s surprise ban on high-value currency notes which hurt several sectors. Tata reported a consolidated net profit of 2.32 billion rupees (£27.8 million) for the three months to Dec. 31, the company said in a statement, beating street estimates of 1.74 billion. That compared with a loss of 27.48 billion rupees a year earlier. Revenue rose 14 percent to 293.92 billion rupees. "Tata Steel recorded strong sales this quarter as the strength of our franchise helped us counter headwinds due to de-monetisation,” T.V. Narendran, managing director of Tata Steel India and South East Asia, said in a statement. Prime Minister Narendra Modi’s ban on old 500 and 1000 rupee bills deflated businesses across India. Tata Steel, which also has operations in Europe, said its UK subsidiary had reached an agreement with trade unions to progress towards closing a pension scheme. The sale of Tata Steel’s British Port Talbot plant, which has been hit by huge losses and massive pension liabilities, was halted last year. Tata Steel UK will negotiate with Liberty House Group for the potential sale of its speciality steels business for an enterprise value of 100 million pounds, the statement said. (Reporting by Sankalp Phartiyal; editing by Subhranshu Sahu and Jason Neely)

By Surya Sarathi Ray| 2017-02-08 00:00:00

The list of 173 was pruned to 66 in August for continuation for two months, but the government continued with the number in October giving MIP extension on these products for another two months. It extended MIP on 19 products in December for two months and now, the number has now been brought down to nil. (PTI) Having pulled out the last 19 steel products from the purview of WTO non-compatible minimum import price (MIP), initially imposed on 173 products in February last year, the government is set to provide for a stronger and long-lasting protection for domestic industry in the form of anti-dumping duty on cheap imports of specified hot-rolled, cold-rolled and other products numbering at least 124. Faced with rising imports amid anaemic domestic demand, the government had in February last year initially imposed MIP in the range of $341-752/tonne to provide a level-playing field against the injury caused as evident from the decline in margins of the local producers. The list of 173 was pruned to 66 in August for continuation for two months, but the government continued with the number in October giving MIP extension on these products for another two months. It extended MIP on 19 products in December for two months and now, the number has now been brought down to nil. India has been under pressure in multilateral fora to remove the MIPs seen as an outdated measure that is WTO-incompatible. Shortly after MIP was imposed, steel imports started falling and the domestic industry’s sales and margins picked up. Meanwhile, in August last year, it imposed provisional anti-dumping duties in the range of $69-152 per tonne on Hot-Rolled coil and “HR not in coil”, after concluding these items are being imported into India at below normal (cost) price, for six months. In the same month, it also slapped anti-dumping duty of the difference between the landed value of the steel products and $594 per tonne on certain cold-rolled flat steel products for six months. Again, last November, it imposed provisional anti-dumping duty on wire rod of alloy and non-alloy steel and in January, on import of colour-coated sheets originating from China and the European Union into India, taking the total number of products under anti-dumping duty to 124. Thirty long products and 19 products related to colour coating have no duty imposed on them now. "There are 124 products now on which anti-dumping duty is there. This includes two colour-coated products. We don’t feel anti-dumping duty is needed for others among 173 products on which MIP was imposed. However, if there is dumping evidence, we may bring anti-dumping duty on the products now left out,” steel secretary Aruna Sharma told FE. Sharma said as investigations are still pending, the provisional anti-dumping duty on some of these items, the tenure of which is ending in the current week, has been extended for two months and based on evidence of injury, the directorate general of anti-dumping (DGAD) would take the final call for extend them for longer term. Source: The Financial Express

By Xinhua| 2017-02-06 09:05:28

BEIJING -- China urged the United States to correct its unfair decision to impose high anti-dumping and countervailing duties on imports of Chinese stainless steel sheet and strip, according to a statement released Saturday by the Ministry of Commerce (MOC). The US Department of Commerce said Thursday that it had determined that imports of Chinese stainless steel sheet and strip should be subject to anti-dumping duties from 63.86 percent to 76.64 percent and anti-subsidy duties from 75.6 percent to 190.71 percent. China is disappointed by a series of decisions by the US related to high anti-dumping and anti-subsidy duties on Chinese steel products and questions its unfair investigation methods, said Wang Hejun, head of the MOC trade remedy and investigation bureau. The United States has violated World Trade Organization rules by neglecting the abundant proof offered by Chinese companies and has treated them unfairly simply because of their state-owned-enterprise status, Wang said. The root cause for current challenges facing the steel sector is the sluggish world economy and shrinking demand, which calls for global cooperation instead of protectionism, according to Wang. The US should abide by WTO rules and correct their unfair practices and China will take the necessary steps to protect due rights of Chinese enterprises, Wang added. Source: http://www.chinadaily.com.cn/

By AFP, Brussels| 2017-02-06 08:35:02

The European Commission’s investigation confirmed that Chinese and Taiwanese stainless steel tube and pipe butt-welding fittings had been sold in Europe at dumped prices. (Shutterstock) The EU slapped definitive anti-dumping duties on steel products from China and Taiwan on Friday, as it broadens its campaign to protect struggling steel manufacturers in Europe. The measure is part of an EU push against China, which makes more than half the world’s steel, for allegedly flooding global markets in violation of international trade agreements. It comes as protectionist US President Donald Trump promises to crack down on China’s dominance of world trade, prompting a vigorous defense of globalization by Chinese President Xi Jinping at the World Economic Forum in Davos last week. Investigation "The European Commission’s investigation confirmed that Chinese and Taiwanese stainless steel tube and pipe butt-welding fittings had been sold in Europe at dumped prices,” the EU’s executive arm said in a statement. The targeted products are used to join steel pipes and tubes, and are commonly used in industries such as food processing and shipbuilding as well as energy and construction. The EU has had a series of trade disputes with China, its second-largest trading partner, but is also seeking to resolve the stand-off over steel with Beijing through the OECD, the Paris-based group of developed economies. Brussels now has more than 100 trade defense measures in place, 39 of them targeting unfair imports of steel products of which 15 are Chinese. Source: http://english.alarabiya.net/

By Mark O'Hara| 2017-02-05 13:29:17

US steel prices We saw significant volatility in steel prices in 2016. While prices fell to multiyear lows in January 2016, we saw a sharp recovery thereafter, mainly due to the impact of trade cases. However, steel prices gave away most of their 1H16 gains in 3Q16 on rising spreads between US and international prices and the price arbitrage for US buyers that came as a result. Prices rallied The graph above shows the movement in spot HRC (hot rolled coil) and CRC (cold rolled coil) as estimated by Metal Bulletin. As you can see, steel prices have rallied handsomely in the last couple of months. Spot HRC prices are now quoted in the ballpark of $630 per short ton, while spot CRC prices are hovering near $840 per short ton. The CRC-HRC spread stands at $210 per short ton. Although the spread is high, gauging by historical standards, it’s been staying near $200 per short ton. Have prices peaked? After the steep increase in November and December, flat rolled steel prices have mainly moved sideways in 2017. We should remember that steel companies like U.S. Steel (X), ArcelorMittal (MT), Nucor (NUE), and AK Steel (AKS) have earnings that are sensitive to steel prices (XME). The key question now could be: Have US steel prices peaked, or is there potential for steel prices to rise higher than these levels? To answer this question, we’ll have to look at the underlying demand-supply dynamics as well as the raw material pricing environment. Notably, higher raw material prices have been a key driver of steel prices in the past couple of months. In the next part, we’ll analyze the recent trend in raw material prices. Source: http://marketrealist.com/

By Leia Toovey| 2017-02-05 08:50:24

According to the National Development and Reform Commission (NDRC), Chinese steel producers were able to post profits last year after the country’s capacity reductions boosted steel prices. The profits of 373 steel companies are expected to reach 35 billion yuan ($5.1 billion) in 2016, even as the prices for some inputs soared. In 2015, these steel companies lost 84.7 billion yuan. China moved in 2016 to cut steel capacity, and as of October 2016 had achieved its goal of reducing capacity by 45 million tons. From 2016 to 2020, steel capacity will be cut by 100 to 150 million tons. At the same time that China cracked down on steel production, it also pushed coal miners to reduce output and soaring metallurgical coal prices impacted steel companies’ margins. There was the sentiment that China would reduce regulations as the rise in metallurgical coal prices were protested by domestic steel companies. However; the fact that these steel companies were profitable gives the government support to push forward with more cuts. In company news, higher steel prices benefited US Steel Corp. in the fourth quarter, and the company lost $105 million, or 61 cents per share, a vast improvement from the loss of $1.1 billion, in the year-ago quarter. Looking forward, the outlook is cautiously optimistic. “We are starting 2017 with much better market conditions than we faced at the beginning of 2016; however, market conditions continue to be volatile. We must remain focused on improving the things that we can control,” said the company’s CEO Mario Longhi. One of the things Longhi is optimistic about is the Trump administration’s stance toward manufacturing and using American made materials. United States Steel and other American manufacturers are “absolutely” prepared to produce steel for the pipelines President Donald Trump want to build, Longhi told CNBC on Wednesday. Source: http://www.economiccalendar.com/

By ScrapMonster| 2017-01-20 17:25:29

European steel prices had a strong end to 2016, trending upwards in December. Regional steel producers continued to push increases to their coil list prices, and some mills in Northern Europe started to test close to €600 a ton as the new offer level for HRC. North and South European HRC indices finished the year at €555 a ton and €530 a ton respectively, gaining €241 a ton and €249 a ton from their lowest points at the beginning of 2016. European steel producers continued to push through higher asking prices for coil products throughout December, leading to significant increases in spot HRC prices. North and South European HRC indices finished they year at €555 a ton and €530 a ton respectively, the highest levels since March 2012. December closed out a year of steady growth of steel prices in Europe, as TSI’s HRC indices gained 77% and 89% in Northern and Southern Europe compared to where they started the year. At the beginning of the month, ArcelorMittal implemented a new €20 a ton increase to its coil prices, bringing the HRC target level close to €575 a ton. Another large North European producer was heard hiking its HRC offers even higher, to close to €600/ t. Many buyers deemed this price level as too high, and preferred to stay out of the market. However, lower-priced offers soon disappeared from the market, leading to increases in spot HRC prices, even though activity remained muted. HRC offer prices from South European producers were heard to increase to €530-540 a ton by mid-December, while import offers were quoted close to this level. Negotiations for yearly automotive contracts were still ongoing at the end of December, as steel producers were reportedly seeking increases of around €200 a ton over last year’s level. Early in December the European Commission announced the start of an investigation into imports of corrosion resistant steel, or HDG, from China. According to European Steel Association (Eurofer) data, coated steel imports from China between January-October 2016 totalled 1.9 million tonnes, up 69% y-o-y, representing 50% of total imports into the EU. The German Association of Steel Distribution (BDS) reported that flat steel inventories, held by its members, remained mostly stable on a m-o-m basis in November at 1.44 million tonnes. Sales of flat products improved in November, totalling 586kt, up by 8% m-o-m. The manufacturing sector in the Eurozone had a strong end to 2016, as IHS Markit reported that its PMI indicator finished the year at 54.9, the highest level since April 2011. Commenting on results, IHS Markit noted the broad-based nature of the upturn, as PMIs improved in all countries surveyed, and attributed much of the improvement to the depreciation of the euro, which made European exports more competitively priced. Source: ScrapMonster

By Joseph S. Pete| 2017-01-19 13:54:14

Great Lakes steel production ticked up to 667,000 tons last week, a 0.7 percent increase over the 662,000 tons of output the previous week. Domestic steelmakers used about 72.3 percent of their steelmaking capacity in the week that ended Jan. 14, up from 71 percent the previous week, according to the American Iron and Steel Institute. It was also up from 68.7 percent during the same time period in 2016 but still well below the 90 percent capacity utilization many analysts consider healthy for the industry. Overall U.S. steel output rose by 32,000 tons last week to 1.71 million, an increase of 1.9 percent, according to the American Iron and Steel Institute estimate. The Great Lakes region, chiefly Lake and Porter counties in Indiana, again led the nation in steel production. Output in the Southern District, which spans mini-mills across the South, rose to 600,000 tons last week, up from 578,000 tons the previous week, a 3.8 percent increase. So far this year, U.S. steelmakers have produced about 5.8 percent more steel than they did during the same period in 2016. Capacity utilization for the year is 70.8 percent, up from 68.7 percent at the same time in 2016. Source: http://www.nwitimes.com/

By Raul de Frutos| 2017-01-18 00:00:00

The price you pay for your steel pretty much depends on two things: 1. Prices in China, since they set the floor for international steel prices. 2. How much of a premium U.S. mills are able to justify over that price. Graphic: Raul de Frutos/MetalMiner. Prices in China are moved by supply and demand dynamics. We’ve explained in previous posts that overall, things are setting up for Chinese prices to continue to trend higher. While demand has been better than expected, China met its 2016 capacity cuts goal and further cuts are expected to take place this year as the country tackles its pollution issues. However, in this post we’ll focus on the premium that U.S. customers pay. This price spread between U.S. and international prices is also very important and could make your purchases more expensive in the coming months. Spread HRC US – HRC China. Source: MetalMiner IndX. Spreads have fallen sharply over the past few months. The spread between U.S. and Chinese hot-rolled coil (HRC) prices is now $97/ton. To put this in context, consider that this spread was $276/ton just seven months ago. This means that just by justifying higher premiums, HRC prices could go from $600 to over $750. Spreads already started to rise last month. Will steel companies have the pricing power to raise their selling prices as they did last summer? There are reasons to believe they at least have a little room for a price increase: Imports When U.S. buyers have access to foreign steel, U.S. steelmakers lose pricing power. Trade cases last year gave U.S. steel mills the ability to increase their spot prices significantly. The soon-to-be President, Donald Trump, favors a more aggressive trade policy, regularly citing job losses as a result of imports from foreign countries, especially China. Markets expect Trump’s tough trade policies to contain steel imports. If imports stay under control, steel companies will have more pricing power, leading to a further expansion of spreads between U.S. and international prices. Low Inventories Source: MSCI, Steel-Insight In 2015, steel end buyers and service centers went about destocking their inventory. The service center inventory destocking activity continued into 2016 as well. Inventory levels have come down. In addition, the proposed U.S. boost in infrastructure spending should cause domestic demand to increase. This combination of low inventory levels and expectation of higher real demand will likely make service centers buy more steel, giving U.S. mills more purchasing power to increase spot prices. Source: https://agmetalminer.com

By The Economic Times| 2017-01-17 15:21:17

NEW DELHI: In a bid to increase domestic steel consumption, the Centre is planning to come up with a policy under which it will be mandatory to use locally manufactured steel for all infrastructure and construction projects of the government. "Talks are going on with concerned ministries for introduction of policy to make it mandatory to use India made steel for all infrastructure and construction projects of the government," Steel Minister Chaudhary Birender Singh said during meeting of the Parliamentary Consultative Committee. The meeting was on initiatives taken by the steel ministry to enhance demand and production of steel and status of completion of projects by PSUs. "...We are exploring new avenues for usage of steel like steel bridges, containers, water tanks and crash barriers and so on. We have spoken to different central and state governments to enhance usage of steel. Many steps were taken by the government in last few months, to provide a level-playing field to Indian steel producers," he said. The steel minister said his ministry was keeping a constant watch on the fast-changing scenario in Indian and international steel industry and has taken appropriate decisions in consultation with other ministries to provide a conducive growth environment for the Indian steel industry. The Ministry of Steel have constituted four committees with representatives from steel producers, consultants, architects and government authorities among other to promote steel usage. The mandates for these committees are formulation of codes and standards, life cycle cost analysis and sustainability, development of designs of various utility structures and skill development in steel sector. Similarly, four task forces have been constituted for increasing steel usage in railways, urban development, road transport and highways and shipbuilding sector. Rural housing targets to achieve one crore dwelling units in the next three years. Usage of steel-based structures can provide huge impetus to the demand of steel. The steel ministry is approaching concerned authorities to share advantages of steel houses like less erection time, more durability, better flexibility and eco-friendliness. Presentations with prototype designs have been made to key officials of rural development ministry. Domestic production of steel has increased by 10.5 per cent in April to December 2016, compared to the corresponding period last year. Moreover, this momentum will be sustained through a multi-pronged strategy in the coming months and years, he said. The steel minister said his ministry would explore the possibility of setting up scrap-based steel plants in northern and western part of the country. "These plants will be energy efficient, eco-friendly, cost-effective and with capacity to produce high quality steel," he said. Source: The Economic Times