By Hellenic Shipping News| 2017-07-10 10:05:25

While battles between police and protesters smoulder outside, leaders of the European Union, United States and China appear close to a trade war cliff edge at the G20 summit in Hamburg.“We are already hearing that some parties are considering introducing protective measures against steel imports in the near future. If this does happen, the European Union will know how to respond appropriately,” European Commission chief Jean-Claude Juncker said before talks began on Friday.US President Donald Trump has vowed to slap tariffs on steel imports to protect American industry, and Washington could start levying the charges as soon as Jul 13.Customs duties on certain steel pipes alone would affect imports to the US worth US$152.6 million last year.Germany (US$38.8 million) and China (US$29.4 million) accounted for the biggest shares, followed by Switzerland, India, South Korea and Italy.For its part, the EU has taken measures against some Chinese steel products, arguing that the government is providing unfair subsidies to manufacturers and distorting the market.REVENGE ON THE ROCKS?Washington’s steel threats have raised hackles in Europe, pushing trade disputes to the top of the agenda as heads of government from leading industrialised and emerging countries gather for the Germany-hosted G20.The event usually ends with a joint communique setting out how leaders will cooperate on issues including global free trade, but details of the wording remained under intense negotiation Friday.“Europe can’t be placed on the same level with unfair competition practices we don’t engage in” like China’s, the French president’s office said, vowing a “very speedy” reaction if the US targets the Old Continent’s exports.EU leaders have quickly cobbled together a list of American products they could strike back at with sanctions, ranging from Kentucky bourbon to orange juice and dairy products, the Financial Times reported on Friday.Commission chief Juncker would not confirm the details, but insisted that Brussels was on high alert and would take only “days” to react to US measures.China, which produces around half the world’s steel supply, has been less talkative on the subject in Hamburg.But Beijing raged against the European sanctions last month, accusing Brussels of failing to understand its loan system.“It is biased and unfair for Europe to blame China for its own industrial issues,” said Wang Hejun, a senior official at the Chinese trade ministry.GUESSING GAMEWhatever text the G20 can agree on will come under a magnifying glass, as the steel row is only the most acute of a long list of complaints about trade.At last year’s summit in Hangzhou, China, leaders agreed that “excess capacity in steel and other industries is a global issue which requires collective responses,” setting up a mechanism for “increased information sharing and cooperation” to try and address the problem.Nevertheless, “the Chinese haven’t really shared all the information” others were hoping for, a source close to the negotiations told AFP recently.“The signal we have been giving is that we are absolutely ready to work with the US” to target Chinese steel, a senior EU official told the Financial Times on Friday.However, “it will be very hard politically to cooperate on those issues if we are not excluded” from the Americans’ sanctions, they added.US acceptance of language supporting free trade at a G7 summit in Taormina, Italy earlier this year stoked observers’ hopes that agreement could be found.But Trump has since returned to the protectionist “America First” rhetoric that carried him into the White House. He has especially targeted Germany, whose massive trade surplus he argues is “very bad for the United States”.Germany’s Chancellor Angela Merkel on Friday called for a “multilateral” solution faced with a global steel glut. “Otherwise the likelihood of bilateral measures will simply be greater,” she said.Source: Hellenic Shipping News

By patch.com| 2017-07-07 09:47:14

MOKENA, IL -- A full-line fasteners supplier has moved to Mokena. Fasteners Plus International opened in a larger space at 9658 196th St. in Mokena last month after moving from north suburban Glenview, according to a press release. The move was celebrated with a ribbon cutting that was attended by officials from the Mokena Chamber of Commerce among others. The Chicago based company manufactures bolts, nails, nuts, pins, clips and other devices that affix two or more objects together. Their new space in Mokena “will provide a comprehensive range of industrial and commercial fasteners,” according to the release posted on pr.com.“They supply all kinds of standard, metric and custom fasteners to their clients. With their wide range of fastener inventory, they are supporting the needs of various industries like automotive, marine, construction, and more.”Source: patch.com

By Muyu Xu / Manolo Serapio Jr.| 2017-07-05 10:31:24

China's Hebei province will slash 11.48 million tonnes in outdated steelmaking capacity to accommodate the expansion of a new plant, part of efforts by the country's top steel-producing region to rein in surplus production.China, the world's biggest steel producer, has been shutting outdated steel plants but also keeping any expansion under control to help tackle a years-long glut.Authorities closed more than 600 steel mills producing low-grade construction steel during the first half of the year, cutting capacity by about 120 million tonnes, the state-owned China Economic Daily reported earlier on Tuesday.Last month, China said it has reduced its total steel production capacity by 42.4 million tonnes as of end-May, meeting 85 percent of its full-year target.In Hebei, the combined reduction in steelmaking capacity at nine mills of more than 11 million tonnes was meant to make way for the expansion of a plant by Shougang Jintang Iron and Steel Co, according to a document published on the Hebei government's website this week.The expansion at Shougang Jintang Steel's plant will add new capacity of 5.1 million tonnes, it said. The entire plant, when finished, can produce 9 million tonnes of steel products annually.Shougang Jintang is a unit of Chinese conglomerate Shougang Group [SGANG.UL].Hebei aims to cut total annual steel production capacity to less than 200 million tonnes by the end of the decade from 286 million tonnes in 2013.($1 = 6.8005 Chinese yuan)(Reporting by Muyu Xu and Beijing newsroom; Editing by Manolo Serapio Jr.)Source: Reuters

By Martin Ritchie| 2017-07-05 10:24:27

China’s army of commodities investors have racked up an unprecedented volume of bets on steel futures, raising the prospect of a sharp retreat if market conditions weaken.Open interest on the Shanghai Futures Exchange’s steel reinforcement bar contract surged to a record 2.82 million lots on Monday, according to bourse data, with each lot representing 10 metric tons of metal. That’s more than double the level at the start of the year, with investors piling up positions in the past two weeks as prices rallied amid renewed optimism on demand. Rebar’s benchmark October contract returned to a bull market on Monday after rising more than 20 percent from this year’s low in mid-April.“There has been quite a lot of money flowing into rebar futures recently, and prices are very volatile amid big market uncertainties,” Li Xiaodong, an analyst at Nanhua Futures Ltd., said by phone from Hangzhou. “The market is very divided, and whenever the bulls or the bears start unwinding their positions, prices could go wildly in either direction.”Rebar, a common product used in construction, has rallied with other steels on bets that a more stable economy in China will prop up consumption. The country’s official steel purchasing managers index expanded for a second month in June, amid signs that the government deleveraging campaign that had rattled commodities markets may be easing. Steel inventories have also thinned out, with rebar stockpiles languishing near their lowest since December, according to consultancy Shanghai Steelhome E-Commerce Co.Rebar rose as much as 3.4 percent on Wednesday to 3,474 yuan a ton, the highest since March 17, before trading at 3,406 yuan by 9:44 a.m. in Shanghai. Aggregate open interest also rebounded after a dip on Tuesday, to about 2.77 million lots. China produced 202 million tons of rebar last year, according to Beijing Antaike Information Development Co.  The futures rally has outpaced increases in the physical market, prompting some analysts to warn that market conditions don’t justify the recent advance. “We don’t really understand the logic behind this rally from a fundamental point of view,” Richard Lu, a CRU Group steel analyst in Beijing, said by phone. “We do think prices will reach a turning point soon, and the fundamentals will take hold. We still don’t see any substantial support for steel prices.”Source: Bloomberg

By Don Lee| 2017-06-29 09:53:12

President Trump was standing on the banks of the Ohio River, and as barges loaded with West Virginia coal floated by, he noted that half the United States’ steel is produced within 250 miles and told the crowd that soon “the steel folks are going to be very happy.”Within that same distance lies the bulk of the U.S. auto industry, which the president also has promised to protect. But carmakers are dreading what Trump apparently was alluding to: plans to impose significant punitive tariffs or quotas on steel imports.Trump has promised to crack down on unfair foreign traders and restore the fortunes of American manufacturing. Few industries are as important as steelmaking, and Trump sees steel as an emblem of industrial power as well as being vital to the country’s national security.But the president faces a conundrum: Making good on his Cincinnati pledge earlier this month may help domestic mills by restricting foreign steel and boosting U.S. steel prices. But that same action almost certainly will mean higher costs for American makers of cars, appliances, machinery and construction materials, and for many other manufacturers that cut, bend and otherwise fabricate steel. That could lead to higher prices for consumers and job losses."I’m sympathetic to American steel mills, but if they protect domestic steel, they’re going to be hurting steel fabricators, which employ a hundred times more people,” said Drew Greenblatt, chief executive of Baltimore-based Marlin Steel Wire Products, which buys only U.S.-made steel. Greenblatt has been paying more for the metal since Trump’s election, as prices have risen partly in anticipation of coming measures.Others, such as Fontana-based California Steel Industries and the Port of Los Angeles, have voiced opposition to blanket restrictions on steel imports, saying the kinds of slab steel that are important for their businesses and employment are not readily available from domestic producers. Nor do analysts think tariffs will address the key problem — excess steel output in China that has caused a global glut and downward pressure on prices.None of that may matter to Trump and his trade officials. Two months ago, the president ordered a study of foreign steel shipments, and its findings and recommendations could be issued as early as this week, giving him the green light to put his “America first” policy into action and remake a global trading system he thinks has undercut the U.S."It’ll be the first big one,” said William Reinsch, a veteran trade specialist in Washington, D.C., noting that till now, Trump’s tough talk on trade has been just that, mostly talk.If Trump follows through as expected, history suggests U.S. steel prices will go higher, domestic steel producers will be happier and some workers laid off from mills will be called back — at least for a while. U.S. steel manufacturing has gone through waves of restructuring and is more productive today, but the industry shed 14,000 steel jobs in the prior two years, thanks to excess global production and unfair trade, according to the American Iron and Steel Institute, a trade group for 18 producer companies. The industry now employs about 140,000, the group said.Tariffs on steel imports are nothing new, but this time, they could carry even greater political and economic risk. Trump aims to slap tariffs on steel imports, which he claims constitute a threat to U.S. national security, using a rarely invoked power granted the president under a 1962 trade law.Steel imports accounted for about 25% of the metal used in the U.S. last year, down slightly from the prior two years. Analysts note that U.S. steel mills currently churn out more than what’s needed for the Defense Department and its programs for fighter aircraft, submarines, tanks and other military equipment.But the Trump White House has suggested that it will be defining national security much more broadly and that ensuring the ability to make ample supplies of domestic steel is critical to safeguarding the nation’s economic security.Commerce Secretary Wilbur Ross has said that the country has just one domestic maker of transformers, an essential part needed for the nation’s electrical grid. That constitutes a “legitimate national security issue,” he told a recent Wall Street Journal conference.Gary Hufbauer, a trade expert at the Peterson Institute for International Economics, called the national-security provision, Section 232, the “nuclear option” as it would basically allow Trump to circumvent legal challenges under domestic trade rules. Foreign parties could bring a complaint to the World Trade Organization, but the global adjudicating body may be reluctant to intervene, given the long acceptance of a national security exception in international trade, however seldom it has been used.Analysts worry what might happen next. Should Trump clamp down on steel imports, other countries could strike back by taking similar action on American goods. They, too, could justify such measures in the name of national security. All of that could spark a trade war and destabilize the international trading order."I think Europe will for sure retaliate,” Hufbauer said.In March 2002, President George W. Bush levied tariffs of up to 30% on various types of imported steel. Like Trump, Bush had promised on the campaign trail to come to the aid of U.S. steel producers and workers who had been ailing amid rising imports and depressed prices. Bush took the action, which was supposed to last for three years, on the more common basis that a surge of imports had caused injury to the domestic industry.U.S. steel prices rose immediately, jumping nearly 70% by mid-summer, according to data from S&P Global Platts. But Bush lifted the tariffs 16 months before they were scheduled to expire, shortly after the WTO ruled the action illegal and Europe threatened to retaliate with tariffs of its own — on citrus from Florida, motorcycles made in Wisconsin and other U.S. goods.Bush claimed that the protective measures were a success in allowing the domestic industry to get back on its feet, but by some estimates, the steel tariffs cost some 200,000 domestic jobs in 2002, about one-fourth of them in metal-making, machinery and transportation equipment and parts sectors.Today American farmers, among others, worry that any new steel tariffs will spill over to them. U.S. Wheat Associates, in written comments to the Commerce Department, said it was “extremely concerned” and urged the Trump administration to “consider the fallout if other countries follow suit and impose restrictions on U.S. wheat or other products as a result of their own national security concerns, whether real or imagined.”U.S. wheat growers, like producers of corn, soybeans and other farm goods, are heavily dependent on exports and are considered particularly vulnerable in a trade war. Disruption of critical food supplies would have ripple effects globally, Wheat Associates said, suggesting that in protecting steel, the Trump administration could threaten the flow of food shipments that may be as integral to national security as steel production.Another tough question facing Trump is how broadly would any such steel tariffs apply. Which countries would feel the sting of its measures?Most of the steel imports come from countries that have long been among America’s closest allies, including Canada, South Korea, Japan, Germany, France, Britain and Australia. In his 2002 steel tariffs, Bush excluded Canada and Mexico, and analysts expect the same from Trump, especially as the U.S. is gearing up to renegotiate the North American Free Trade Agreement.The U.S. already has in place some tariffs on various steel from China and some other countries, for selling products below cost or with the unfair benefit of government subsidies. As a result, steel from China accounted for just 3% of total U.S. steel imports last year, although that does not tell the whole story. Steel shipments to the U.S. from Turkey, for example, have doubled since 2013, and the American steel industry says Turkey has been buying cheap Chinese steel billets, turning them into products and then loading them onto boats to America.It’s one thing to impose tariffs on China and even Turkey, a NATO partner, but quite another if Trump decides to apply tariffs or quotas broadly, on friends and allies alike, said Reinsch, the trade expert at the Washington, D.C.-based Stimson Center think tank."We’re doing this at the same time we’re trying to get Korea to make operational the U.S. anti-missile system,” he said. “We’re going to push them on steel at the same time we’re trying to get Japan to negotiate a free-trade agreement, and EU the same thing.” There will be consequences, he said.Greenblatt, the CEO of Marlin Steel Wire, said it’s hard enough already competing with European rivals. If Trump imposes tariffs, he reckons he will be paying even more for American steel, while Germany and others may continue to buy China-made steel at a cheaper price, making it even tougher to win business in the global market."My heart bleeds for the steel mill guys,” he said. “But the steel fabricators are going to get their heads handed to them if everybody else buys from China.”Source: Los Angeles Times

By REUTERS| 2017-06-27 13:04:29

BEIJING: China's steel prices rose on Monday, regaining some lost ground from last week, as investors bet on tighter supplies from government-enforced cutbacks, offsetting concerns about slow demand and rising inventories in the world's top steelmaker. The crackdown on low-end steel production has been in focus recently as the deadline, for mills to shut induction furnaces that produce rebar used for construction purpose, ends on June 30. The effort to close small low-tech furnaces comes as Beijing aims to cut excess capacity, tackle pollution and improve safety measures at these mills. Analysts estimate induction furnaces produced about 50 million tonnes of rebar last year - about a quarter of China's total rebar output. The most-traded rebar on the Shanghai Futures Exchange gained 1.47 per cent at 3,107 yuan ($454.21) per tonne, during morning trade on Monday, after touching an intraday high of 3,132 yuan per tonne. Even so, the construction steel product is on track for its first quarterly loss since the fourth-quarter of 2015 amid growing concerns about weakening demand. Hot weather in the north and heavy rainfall in the south typically slow down construction activity during summer, limiting buying of steel. Total inventories of rebar rose slightly last week, up by 0.5 percent to 3.76 million tonnes, data compiled by SteelHome consultancy showed. Earlier in June, stockpiles had fallen to their lowest in six months. Still, mills continue to ramp up output due to buoyant margins. Utilization rate picked up 0.46 percentage points to 87.13 percent last week, according to data tracked by SteelHome. "But considering the weakening demand in summer, the incentives for mills to reduce stockpiles will start to wane," said Orient Futures in a note on Monday. The most-active iron ore on the Dalian Commodity Exchange climbed 0.47 percent to 431.5 yuan a tonne, even as stockpiles swelled again last week. Import data released on Friday showed an increase in shipments of foreign raw material. The market was on a technically weaker footing after the 50-day simple moving average fell below the 200-day SMA on Friday, in a formation known as a "death cross". The two prices have not collided since March last year, which marked the start of a prolonged rally. Last week, inventory of imported iron ore at ports rose to 141.5 million tonnes, its highest since 2004, according to data tracked by SteelHome. Speaking at a conference on Friday, Li Xinchuang, president of the China Metallurgical Industry Planning and Research Institute, forecast that prices could fall as low as $50 per tonne in the second-half of the year due to oversupply. Source: Reuters

By Andrew Mayeda and Justin Sink| 2017-06-13 10:42:48

President Donald Trump’s administration will as soon as this week release results of its investigation into the impact of steel imports on U.S. national security, White House spokesman Sean Spicer said.Commerce Secretary Wilbur Ross “should have a further update on the 232 review later this week,” Spicer told reporters on Monday, referring to a seldom-used section of the 1962 Trade Expansion Act. “When that comes out, there are certain recommendations that will be made to Congress to address anti-dumping provisions in the steel and aluminum and other markets.”If the department finds evidence of a national-security threat from foreign steel shipments, the president is authorized to unilaterally “adjust imports,” which could include limiting or restricting them.Trump said last week his administration would take measures “very soon” to stop foreign firms from selling steel in the U.S. at artificially low prices.“Wait’ll you see what I’m going to do for steel and for your steel companies,” Trump said last week in Cincinnati. “We’re going to stop the dumping and stop all of these wonderful other countries from coming in and killing our companies and our workers.”When the section 232 probe was launched in April, Ross argued that China had failed to deliver on promises to reduce excess steel capacity, a situation that he said was hurting the U.S. steel industry. China has noted that its shipments to the U.S. are low-end steel products that local producers aren’t willing to make and that it accounts for a small volume of total U.S. imports.The Commerce Department is conducting a separate section 232 investigation into aluminum imports and it will holding a public hearing as part of that review on June 22.Source: www.bloomberg.com

By PTI| 2017-06-12 11:05:06

NEW DELHI: India as a steel bright spot is highly encouraging and is on track to become a top global producer, says an industry body. According to the latest report from BMI Research, demand from construction, automotive and infrastructure industries continues to accelerate. The report has put down the sector's success to the government's push to raise capacity in order to meet demand from construction, automotive and infra sectors, said the Steel Users Federation of India (SUFI) in a statement today. SUFI President Nikunj Turakhia said, "In recent years, the Indian steel industry has showcased a progressive output trend y-o-y." Being recognised as a "bright spot" is highly encouraging as well as a large responsibility at the same time, he said, adding that with the introduction new steel and anti-dumping policies, India is on the path to become one of the top steel producers. The report highlighted that Indian steel giant such as Steel Authority of India Ltd (SAIL) and Tata Steel as the major drivers of such growth. BMI Research has forecast India's steel output to clock an average annual growth of 8.9 per cent during 2017-21, higher than 2.9 per cent in 2012-16. India's steel output would grow to 128.6 mt by 2021 from 88.4 million tonnes (mt) in 2017 and the country's share of global steel production will accelerate to 7.7 per cent in 2021 from 5.4 per cent in 2017, it added. Ahead of the GST Council meeting tomorrow, Turakhia expressed concern over the headwinds faced by the sector. He has also urged the government to relax imposition of GST penalties and prosecution. SUFI was part of the delegation that recently presented its case on GST to Maharashtra Finance Minister Sudhir Mungantiwar in Mumbai. Source: The Economic Times

By Bulten| 2017-06-08 10:30:03

· Bulten, through its majority owned joint venture company BBB Services Ltd, honored by Ford Motor Company with a Special Recognition World Excellence Award · Ford’s World Excellence Awards honor companies that exceed expectations and achieve the highest levels of excellence in quality, cost, performance and delivery · Suppliers like BBB Services Ltd are key to Ford’s success as it transforms to an auto and mobility companyDEARBORN, Mich., May 23 2017 – BBB Services Ltd was recognized as a top-performing global supplier for Ford Motor Company at the 19th annual Ford World Excellence Awards. Fifty-four companies were selected from thousands of Ford global suppliers.BBB Services Ltd was presented with a Special Recognition Award by Hau Thai-Tang, Ford Motor Company group vice president, global purchasing.“We are extremely honored and proud to receive this award,” said Tommy Andersson President and CEO of Bulten and Chairman of BBB Services Ltd.“The Ford World Excellence Awards recognize the outstanding achievements of our top-performing global suppliers,” said Thai-Tang. “Suppliers like BBB Services Ltd are key to Ford’s continued success as we transform to an auto and mobility company.”Honorees were recognized for achieving the highest levels of global excellence in a variety of categories, including:Primary Brand Pillars – quality, green, safe and smartAligned Business Framework principles focused on quality, value and innovationLincoln LuxurySupplier Diversity DevelopmentAbout BultenBulten is one of the leading suppliers of fasteners to the international automotive industry. The company’s product range includes everything from customer-specific standard products to customized special fasteners. The company also provides technical development, line-feeding, logistics, material and production expertise. Bulten offers a Full Service Provider concept or parts thereof. The company was founded in 1873, has some 1,300 employees in nine countries and head office in Gothenburg. The share (BULTEN) is listed on Nasdaq Stockholm. BBB Services Ltd is a majority owned joint venture company by Bulten. About Ford Motor CompanyFord Motor Company is a global automotive and mobility company based in Dearborn, Michigan. With about 202,000 employees and 62 plants worldwide, the company’s core business includes designing, manufacturing, marketing and servicing a full line of Ford cars, trucks and SUVs, as well as Lincoln luxury vehicles. To expand its business model, Ford is aggressively pursuing emerging opportunities with investments in electrification, autonomy and mobility. Ford provides financial services through Ford Motor Credit Company.Source: Bulten

By PTI| 2017-06-08 10:02:21

NEW DELHI: India produced 16.391 million tonne (MT) of crude steel in the first two months of the current fiscal, up 4.5 per cent year-on-year. It had produced 15.683 MT in the same period of last fiscal. Output in May was 8.163 MT, up 2.2 per cent, from 7.989 MT a year ago, as per the latest Joint Plant Committee (JPC) report. However, on month-on-month basis, it was down 0.8 per cent over April, when the country had produced 8.228 MT. "SAIL, RINL, TSL, Essar, JSWL and JSPL together produced 9.292 MT during April-May 2017, which was a growth of 8 per cent over same period of last year," it said, adding "the rest 7.099 MT came from the other producers". Production for sale of total finished steel during the two-month stood rose 6.7 per cent to 17.546 MT from 16.248 MT in same period of last year. In May, the country registered 4.4 per cent rise its production for sale of total finished steel to 9.066 MT, from 8.681 MT last. India has been doing good in terms of exports and maintained the momentum during the second consecutive month of the ongoing fiscal. The export of total finished steel was 69 per cent up at 0.641 MT in May, as against 0.379 MT in same month last year. However when compared to April 2017, it is a contraction of 14 per cent. The imports stood at 0.558 MT against 0.545 MT, up 2.4 per cent over the May 2016. On month-on-month basis, it grew 10 per cent. During the April-May period, exports grew 102 per cent to 1.387 MT and imports fell 11.4 per cent to 1.062 MT. The country remained a net exporter of total finished steel in May as well as the first two month period of 2017-18. India's consumption of total finished steel saw a growth of 4.2 per cent in April-May 2017 (13.785 mt) over same period of last year, under the influence of a rising production for sale. The overall consumption in May was at 7.491 MT, up 19 per cent over April 2017 and was up by 1 per cent over May 2016. India is the third largest producer of crude steel after China and Japan. The government is taking various measures and initiatives to promote the domestic steel sector and raise capacity. On May 3, the Cabinet gave nod to a new policy which aims to achieve steel making capacity of 300 MT by 2030 with an additional investment of Rs 10 lakh crore. The same day, the government approved a policy for providing preference to domestically manufactured iron and steel products in procurement by the government and its agencies.Source: The Economic Times