DeBeurs.nl

voda 17 augustus 2021 12:01

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Canadian steel prices rise in July
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Prices for steel products, fabricated metal products, and construction materials rose in Canada from June to July, Kallanish understands from data collected by Statistics Canada.

According to Canada's industrial producer price index, primary ferrous metal prices rose by 5.6% in July to 150.7 points, while fabricated metal and construction material prices rose by 4.4% to 121.7 points. The industrial producer price index utilises January 2020 as a base month for price comparison set as 100 points on the scale.

In an on-year comparison, primary ferrous metal prices remain up 49.7% while fabricated metal and construction material prices remain up 22.6% from their respective levels in July 2020.

Zach Johnson USA

voda 17 augustus 2021 12:01

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Plate pricing holds firm in US
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US plate pricing held steady last week despite the passage of the Biden administration’s historic trillion-dollar infrastructure bill, Kallanish understands.

Kallanish maintained its A36 price Monday at $1,550-1,600/short ton, ex-works, domestic mill.

A Midwest buyer says that recent mill hikes have already sunk into the market and more could be on the way.

“No changes this week, [but] business remains strong,” he says.

The $1.2 trillion infrastructure bill is now in the US House of Representatives - having already cleared the Senate - and passage there would almost certainly guarantee President Joe Biden’s signature and its subsequent adoption as law.

However, steel demand as a result of the bill remains relatively distant, the buyer says.

“No one has mentioned the infrastructure bill yet,” he says. “Any movement in conditions are months or a year away.”

Dan Hilliard USA

voda 17 augustus 2021 12:01

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Cold-finished bar imports dip in June
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US imports of cold-finished bars dipped in June from May, Kallanish learns from steel import data collected by the US Department of Commerce.

According to Census data collected through 9 August, US imports of cold-finished bars totaled 10,778 tonnes in June, down from May's imports totaling 14,635t. The leading exporter of cold-finished bars to the US in June was Canada (2,740t) followed by Germany (1,657t), Spain (1,633t), and Italy (1,145t).

In an on-year comparison, US cold-finished bar imports remain above June 2020's imports totaling 9,951t. At the time, the leading exporters of cold-finished bars to the US were Italy (3,845) and Canada (1,788t).

Zach Johnson USA

voda 17 augustus 2021 12:02

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Buyers negotiate on US HRC, CRC steams ahead
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US hot-rolled lead times are now into October, and so negotiations are still brewing over the final price. Cold-rolled and hot-dipped galvanized substrate, however, remains active and hot, Kallanish hears.

A source at one top-tier mill says a few hot-rolled deals were done last week for a few hundred short tons at a $1,900/st base.

“The CRC and coated side was far more active, as we are getting to a point where we are filling up October so we got those spot deals done last week,” he says, putting the spread for cold-rolled at $2,025-2,100/st.

The coated spread was much wider, he adds - $2,100-2,200/st for certain items.

A Midwest buyer characterises the market as very much a seller’s paradise.

“For the mills - $$$$$,” he writes. “For the buyers - doom and gloom. For [my company] - go with the flow. Simple but accurate.”

Kallanish raised its hot-rolled assessment Monday to $1,875-1,900/st, with cold-rolled likewise moving up to $2,100-2,150/st. All prices are ex-works, domestic mill.

Dan Hilliard USA

voda 17 augustus 2021 12:02

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Chinese output and demand weaken further in July
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July data shows Chinese demand fell further from June, and that steel output fell on-year for the first time in 2021. Demand has been hit by weak construction activity in excess of the normal summer slowdown, and reduced output has not yet been enough to match the reduction in consumption, Kallanish notes.

At 86.79 million tonnes, crude steel output was down 8.4% year-on-year, and 7.55% month-on-month in July, according to the National Bureau of Statistics (NBS). Over the first seven months, crude steel output is now only 8% higher at 649.33mt, after increasing 11.8% over the first half.

Apparent steel demand was also down thanks to the lower output. Apparent demand was at 78.781mt in July, down 13.49% y-o-y and 6.63% m-o-m. Over seven months, at 588.77mt, apparent demand is now up 5.82% compared to this time last year.

The growth in inventory levels slowed down in July, but did not stop, and the inventory rate deteriorated significantly. Adjusting for inventory change, end user demand was down 7.9% y-o-y, and fairly constant m-o-m at 76.99mt. Taking into account the longer month however, end user demand was down 3.26% m-o-m at 2.484m t/d. Over the first seven months, end user demand is 7.54% higher on-year at 557.397mt. This also meant the July 2021 inventory rate (inventories/demand) was up from 107.5% last month and 100.62% in July 2020, at 111.14%.

Tomas Gutierrez UK

voda 17 augustus 2021 12:02

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Erdemir's first-half output up, financials soar
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Erdemir Group's steel output and sales rose considerably in the first half of 2021, buoyed by strong demand and price increases in all key markets.

Crude steel output rose 8% on-year to 4.5 million tonnes, despite the Eregli plant's crude steel production falling 8% to 1.7mt. The Iskenderun-based Isdemir plant's output rose 21% on-year to 2.8mt after blast furnace No.4 repairs were completed. The firm's total capacity utilisation gained 7 percentage points on-year and reached 94% in H1.

Erdemir's flat products output rose in H1, but long products output fell. The flat products market has been much stronger during the reporting period, buoyed by unprecedented demand. Flat products output rose 5.6% on-year to 3.74mt, while long products output fell by 10.2% to 0.4mt. Iron ore and pellet output, meanwhile, gained 32.1% reaching 1.25mt.

H1 sales of flat products rose by 4.4% to 3.64mt, with domestic sales volumes rising 8% on-year to 3mt and exports falling 16% on-year to 606,000t. Longs sales declined 16% to 380,000t, as domestic sales fell 13% to 367,000t and exports declined by 61.8% to just 13,000t, Kallanish notes. Exports constituted 15% of total sales in H1, 3 percentage points down on-year, or 619,000t in total.

The group's financials were subsequently propelled by higher prices and sales volumes. Consolidated sales revenues almost doubled – up 79.9% on-year – to TRY 24.8 billion ($2.92 billion), with net profit rising almost sevenfold to TRY 6.05 billion ($713.5 million). The group's profitability more than doubled from 17.9% in H1 2020 to 38.3% in H1 2021.

Katya Ourakova UK

voda 17 augustus 2021 12:03

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Wire mesh bottleneck tightens in Germany
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The shortage of rebar and associated construction steels in Germany, already aggravated by the summer shutdown at many mills, could become even worse in the aftermath of the floods seen in July.

Of the epicentres of the damage, the Ruhr region is the most crucial for steel, although it is mostly processors and warehouses for coil and strip that have suffered. Of course, damage to infrastructure like train lines will also impair transport of other product groups

Another epicentre is the Ahr river further south in Rhineland-Palatinate, where most casualties occurred, mostly in villages along the Eifel mountains. However, impairments in that region also have repercussions for wire mesh plants owned by Riva group, Kallanish hears from a distributor’s manager.

The plants are located in Trier, Horvath and, further away, in Lampertheim. With some train lines in the Eifel region defunct until at least November, the manager fears that “lead times will stretch out even more”.

“Production of coils and wire mesh will be harder because those operations are depending on wire rod as input material, which has been short already,” he says. He now assumes lead times of at least six to eight weeks for new orders of any reinforcing steel product.

Another manager has been waiting for two months for wire mesh he ordered through a large distributor. For another order, placed at a processor, “in July it was still unclear if production will take place in August”, he says.

Prices for rebar in coil are now seen at between €680 and €700/tonne ($801-843), and for wire mesh at €870-880/t.

Christian Koehl Germany

voda 17 augustus 2021 12:03

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German rebar mills brush off buyer concern
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Complaints about long lead times and lack of communication heard from various rebar buyers are not shared or confirmed by the mills.

In fact, most mills preferred not to reply to an inquiry sent to them by Kallanish, or said they did not want to appear in this context. A clear word only came from Riva Group, with its two mills near Berlin. “At the moment, we are serving an over-proportional amount of orders, to be delivered in a short time,” management says. “There are no complaints from customers, as we have a continuous exchange of information,” it claims.

At one of the other mills, the shop chairman dismisses the idea of exaggerated delay or lack of communication. “We are able to supply the market, so maybe that’s a problem at the level of the distributors,” he suggests.

Regarding the bottleneck of supply, one manager at a stockholder points to a factor that comes on top of high demand, material shortage, summer shutdown and damage from the floods in July. He feels the summer break is especially painful at haulage companies. “Transport capacities are just very limited at present, and in some regions you can get hardly get trucks,” he opines.

Base price offers from German mills for straight rebar have now reached €660/tonne ($778).

Christian Koehl Germany

voda 17 augustus 2021 12:04

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Egyptian HRC gains Saudi share after China retreat
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Egypt is increasing its influence in Saudi Arabia’s hot rolled coil market since Chinese HRC is pegging at higher levels. The North African country is also the only producer of HRC thinner than 1.5mm in close proximity to Saudi Arabia, market participants tell Kallanish.

Saudi local producer Hadeed has pegged SAE 1006 re-rolling grade 3mm and up HRC offers at SAR 4,087.5/tonne ($1,090), while 2mm product is at SAR 4,162.5/t ($1,110) delivered within Saudi Arabia for October delivery.

3mm and up SS400 grade HRC is at SAR 4,162.5/t ($1,110), while 2mm product is at SAR 4,237.5/t ($1,130) delivered. 2mm and up S235 grade HRC is meanwhile quoted at SAR 3,937.5/t ($1,050) delivered.

Indian mills are quoting S235 grade 2mm and up HRC at around $965/t cfr Dammam.

Egyptian mills’ export quotes are at $1,080-1,100/t fob Damietta for 2mm and up S235 grade HRC, $1,090-1,110/t fob for 2mm and up S275JR grade HRC, and $1,105-1,125/t fob for 2mm and up S335JR grade HRC. S235 HRC of 1.1-1.2mm thickness is meanwhile offered at $1,160-1,170/t fob, sources confirm.

When selling to Saudi, these Egyptian prices exclude 15% VAT, which must be paid on sales in Saudi Arabia. Clearance and transportation cost within the kingdom comes to SAR 75/t ($20). Egypt-origin product is exempt from the 15% duty on HRC imports.

Market participants expect Hadeed to close deals this week at around SAR 200/t lower than quotes, based on agreements with buyers. These stipulate that discounts are given to buyers if they exceed 80% of the purchased quota.

Saudi business volume is low and CIS offers may pressurise Indian quotes in the coming days, local sources say.

Burak Odabasi Turkey

voda 17 augustus 2021 12:04

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NLMK delays BOF restart after five-day repairs
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NLMK has extended the suspension of production at BOF shop No.2 at its flagship Russian Lipetsk works until 21-23 August to enable additional works on the oxygen distribution unit, the company says in a statement sent to Kallanish.

The BOF shop No.2 was halted after the pipework supplying oxygen to the shop was damaged in an incident on 9 August. The repair works were supposed to take 48 hours, with around 46,570 tonnes crude steel output loss based on its nameplate capacity of 8.5 million tonnes/year in 2020.

The BOF No.2 oxygen supply was eventually reinstated after five days, but the need for further infrastructure enhancements was identified, postponing the full relaunch. The firm is yet to provide full output loss volume.

The newly reconstructed BOF shop No.2 is projected to produce 10m t/year once the equipment and processes are fully established. It has been producing at the initial capacity of around 8.5m t/y thus far this year. Enabled by reconstruction, dust emissions at BOF shop No.2, which produces around 60% of Liptesk's crude steel, are reduced by 2.5 times.

Katya Ourakova UK

voda 17 augustus 2021 12:05

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Iron ore, scrap prices resist steel downturn
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Seaborne iron ore prices continued to tick slightly higher on Monday as they adjust after recent changes. The weak economic data which sank steel prices during the day also resulted in expectations that production restrictions could be eased.

The Kallanish KORE 62% Fe index gained $0.82/t to $162.15/dry metric tonne cfr Qingdao. The KORE 65% Fe index increased $0.79/t to $192.79/dmt cfr, and the KORE 58% Fe index was up $0.08/t to $135.51/dmt cfr.

On the Dalian Commodity Exchange January 2022 iron ore settled up CNY 16/t at CNY 847.5/t ($131.04/t), while on the Singapore Exchange September 62% Fe futures settled up $1.65/t at $161/t. The same contract for 65% Fe and 58% Fe futures settled up $1.90/t at $188.46/t, and up $0.14/t at $132.84/t respectively.

Chinese scrap prices had yet to feel the downturn, but billet prices were already dropping. 6mm+ heavy scrap delivered to mills in the Yangtze River Delta dipped CNY 3/t from Friday to CNY 3,741/t. In Tangshan, billet prices had held steady over the weekend, but dropped CNY 50/t on Monday to CNY 5,040/t.

Chinese steel markets fell on news that China’s economy slowed significantly in July. Iron ore however was supported by rumours that the weak economy could mean China has to ease steel output restrictions. Other market watchers however pointed out the flaw in this argument. Boosting steel output amid weak demand would only reduce steel industry profits and support prices for imported raw materials.

Tomas Gutierrez UK

voda 17 augustus 2021 12:05

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REUSTeel project to be presented in Stockholm
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An ongoing pan-European research project on residual materials in steelmaking will present results at the upcoming European Steel Technology and Application Days (ESTAD) conference in Stockholm.

The project is titled “Dissemination of results of the European projects dealing with reuse and recycling of by-products in the steel sector,” abbreviated to REUSteel. It is funded by the Research Fund for Coal and Steel (RFCS); the institutes involved are SSSA, Swerim, BFI, FEhS, and, RINA-CSM. Three topics identified within the dissemination project and featured at ESTAD are slag use, residual material use in blast furnaces and sinter plants, and residual material use in electric arc furnaces.

ESTAD is taking place from 30 August to 2 September. It is hosted in cooperation between the German Steel Institute VDEh, Austrian Society for Metallurgy and Materials (ASMET), Associazione Italiana di Metallurgia (AIM), and the Swedish Steel Producers Association (Jernkontoret). The previous conference took place in Düsseldorf on the occasion of the METEC trade fair in 2019.

On account of the coronavirus hazard, the confab this year will be held both virtually and on-site. “A cancellation or major re-scheduling was not an option,” Kallanish is told by Jernkontoret technical director Gert Nilsen. The organisers pushed the conference from mid-June to the end of August, “which was as far as we could without intruding on other conferences”.

Christian Koehl Germany

voda 17 augustus 2021 12:06

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US market sentiment diverges over September scrap trading
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Following the price declines seen in obsolete grades in the US during August trading, market participants’ opinions have diverged over September pricing. While some expect prices to further decrease due to the ongoing declines in Turkey, others see prices moving sideways.

During August trading obsolete scrap prices have declined by $20/gross ton from July, while prime grades remained unchanged or declined by $10/gt, depending on the region. While this has caused the shredded-busheling spread to hit its highest, at $170/tonne, since 2008, most market participants think this cannot be sustained and the gap has to narrow.

Although finished steel prices are hitting new records each day and demand for scrap remains strong in the US, the strong flow of obsolete grades and weakening prices in Turkey are seen hampering price recovery.

A US domestic scrap supplier tells Kallanish: “We will most probably face stronger pressure on prices in the Southeast due to the weak market in Turkey. Despite the strong US domestic market, a price increase does not seem possible with the current strong flow. Maybe we can see a narrower spread between shredded and busheling if mills change product mix. But I think price declines for all grades are more likely.”

Another supplier thinks the market will move sideways as it still has support from finished still prices.

On the East Coast, Turkish mills’ low appetite for imported scrap purchases continued throughout last week. Premium HMS 1&2 80:20, which was at $461/t cfr Turkey in a US-origin scrap booking the previous week, has fallen to $455/t cfr on a booking concluded from the Baltic.

US suppliers are seen waiting for Turkish mills’ scrap demand to resume before offering their cargoes. With multiple offers from all regions and supply outpacing demand, the pressure on imported scrap prices in Turkey is likely to continue. Market participants expect premium HMS 1&2 80:20 prices to appear at $450/t cfr levels in new bookings.

Burcak Alpman Turkey

voda 17 augustus 2021 12:06

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Benelux scrap prices fall further amid Turkey pressure
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Scrap prices in the Benelux continue to fall as Turkish mills bid at lower levels after each deal. Benelux exporters have further decreased their dock prices under the pressure.

Dock prices, which stood at €330-335/tonne a week earlier, were pegged on Monday at €320-330/t ($380-389) delivered.

Turkish mills continued to take their imported scrap purchases slowly and exert pressure on prices last week. A Turkish mill in the west bought a cargo comprising 18,500 tonnes of HMS 1&2 80:20 at $455/t, 1,500t of bonus at $470/t and 5,000t of shredded at $470/t cfr Turkey during the second half of last week.

The price of this deal points to a $6/t decrease in premium HMS 1&2 80:20 prices compared to the previous booking.

Meanwhile, there was a rumour of an EU-origin HMS 1&2 80:20 sale at $450/t cfr on Monday. The seller was quoting at $455/t cfr last week and ready to sell at $450/t cfr. The booking, however, is yet to be confirmed.

Some Turkish mills are heard to have given bids at below $450/t cfr for EU-origin HMS 1&2 80:20.

A Benelux domestic scrap supplier tells Kallanish: “Prices keep coming down and I think there is some more room for a further fall as nobody else is buying this grade. Turkey still has the power on HMS prices.”

Kallanish observes the availability of numerous EU-origin scrap offers in the market. Although European suppliers are seen aiming to sell HMS 1&2 80:20 at above $450/t cfr, this does not seem possible due to supply outpacing demand in Turkey’s scrap market.

A European scrap exporter says: “It is not possible to sell at below $450/t cfr at current dock prices. I have asked my colleagues to stop procuring scrap as I cannot foresee where this will head to.”

In India, on the contrary, European-origin shredded prices have inched up due to stronger finished steel demand in the country. This, coupled with strong scrap demand and higher scrap prices in Pakistan, caused scrap offers to rise in India. Current EU-origin offers for containerised shredded scrap stand at $535-540/t cfr Nhava Sheva and Qasim. Buyers, however, are hesitant to pay so high for EU-origin shredded and instead prefer cheaper ex-Dubai, ex-UK and ex-US material.

Most market participants expect stronger demand and higher prices in the Indian sub-continent this week.

Burcak Alpman Turkey

voda 17 augustus 2021 12:07

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LKAB earnings soar, foresees maintenance disruption
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Iron ore pellet demand remains strong but prices have fallen from their July peaks, says LKAB. Production and costs will be impacted in the second half-year by additional maintenance, carried over from spring when work was reduced due to prevent Covid-19 spread, Kallanish notes.

Kiruna mine crushed ore production remains impacted following last year’s seismic event. At present production is at around 90% of capacity. The supply of crushed ore to the processing plants was secured by redirecting crushed ore between production sites; however, this entailed increased costs. Gällivare Municipality is meanwhile yet to approve the necessary zoning plan amendment for eastern Malmberget.

Iron ore deliveries rose 5% on-year in the second quarter to 6.9 million tonnes, with pellet accounting for 85%. Consolidated net sales soared 98% to SEK 14.7 billion ($1.7 billion) and net profit almost quadrupled to SEK 7.67 billion. Higher prices for highly upgraded iron ore products and higher delivery volumes were offset by a lower dollar exchange rate and somewhat higher costs, LKAB says.

The average global spot price for iron ore products in Q2 was $200/tonne, up by $33/t on the previous quarter. The price at the end of the quarter was $218/t. Quoted pellet premiums for the quarter were twice as high as in the same period last year.

In the first half of 2021 deliveries were flat on-year at 13.9mt, with net sales up 74% to SEK 27 billion and net profit up 352% to SEK 13.7 billion.

Adam Smith Germany

voda 17 augustus 2021 12:07

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Turkey’s July automotive production slumps amid supply issues
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Turkish automotive production fell by 44.6% on-year in July to 65,418 vehicles, while passenger car production declined 56.9% to 33,529 units, Kallanish learns from the Turkish Automotive Manufacturers' Association (OSD).

Output also sharply declined from June, the month with the highest figures in the last four years.

Commercial vehicle production declined by 20.9% to 31,889 units, while motor vehicle production fell by 20.9% to 31,889 units in July.

Turkish automotive exports fell by 35.1% to 50,781 units, generating $2.03 billion in revenue, down from $2.22 billion last year.

July imports also fell by 41.3% to 28,570 units, while passenger car imports alone declined 45% to 22,831 units.

In January-July, however, passenger car and commercial vehicle production increased by 2.1% and 29.9% respectively.

In the same period, total exports increased by 6.6% compared to the previous year and total imports rose by 33.5%. Passenger car imports alone rose 25.8% on-year.

In January-July the total capacity utilisation rate of the Turkish automotive Industry stood at 62%.

OSD chairman Haydar Yenigün said on Bloomberg TV that he expects current supply problems in the automotive industry to continue in the following period, while automotive sales are expected to grow. As a result, it will take 1-1.5 years for automotive industry supply and demand to find equilibrium.

Burcak Alpman Turkey

voda 17 augustus 2021 12:07

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OMK to supply more pipe for Bangladesh NPP
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Russia’s United Metallurgical Company (OMK)’s Belgorod Power Engineering Plant (BZEM) has supplied since 2018 over 1,200 tonnes of pipe products for Bangladesh’s first “Rooppur” nuclear power plant.

The plant will manufacture and ship another 2,600t by the end of 2022, of which 400t will be by the end of 2021, Kallanish notes.

OMK already produced one-piece forged valve bodies made of austenitic stainless steel for nuclear power plants. This product has increased corrosion resistance and can be used in aggressive environments, the enterprise claims.

“We see that OMK has a very responsible approach to production, so we have no doubts about the quality of your products,” says Bangladesh science and technology minister Yafesh Osman.

“Our company is actively involved in the supply of equipment for nuclear power plants in many foreign projects,” notes BZEM managing director Alexander Vashchenko. “We look forward to developing relations not only on pipelines for nuclear power plants, but also on other projects.”

Svetoslav Abrossimov Bulgaria

voda 17 augustus 2021 12:08

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MENA rebar demand, prices remain depressed
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United Arab Emirates mills have kept 8-32mm domestic rebar prices more or less unchanged this week after discounting them to AED 2,650-2,752/tonne ($721.5-749/t) ex-works last week due to low demand. Buyers however anticipate more discounts.

This week, transaction prices are expected to vary from AED 2,650-2,750/t ($721.5-$742/t).

Buyers are showing little intention to make a deal since they anticipate Emirates Steel will announce September-delivery prices by the end of this week. Trade flow has no pulse at present, one buyer says of the current situation.

Last month ESI decreased its rebar price for domestic August deliveries to AED 2,956/t ($805) ex-works from AED 3,012/t ($820) valid for July (see Kallanish passim).

Market participants expect ESI to close deals this week at AED 2,750/t, AED 262/t lower than official quotes, subject to volumes.

Saudi Arabia's biggest producer Sabic's 12-32mm rebar and wire rod prices remain unchanged on-week at SAR 3,100/t ($826.6) and SAR 3,300/t ($880) respectively. A discount of SAR 200-290/t is given to buyers who fulfil pre-agreed quotas, say local sources.

In Iran's domestic market, meanwhile, mill prices for 12-32mm A3 rebar are at IRR 155,045/t ($575) ex-works, excluding 9% VAT. Export quotes for the same product are at $655/t fob, while to Iraq this price includes delivery to the border. The government controls prices in Iran to offer the domestic market lower prices than export markets.

In Egypt’s domestic market, mills are offering 12-32mm rebar at EGP 12,553-12,788/t ($800-$813.4/t) ex-works, excluding 14% VAT. In export deals, a discount of up to 5% from offers can be negotiated, following the decline in billet prices, say local market sources. The 10% safeguard duty on billet imports continues to make re-rollers less competitive in the export market.

Burak Odabasi Turkey

voda 17 augustus 2021 12:08

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Iron ore shortage depletes Odisha's steel capacity utilisation
4 Views

Odisha’s Steel and Mines Department says that due to the shortage of iron ore in the fiscal year through March 2021 (FY21), iron ore pellet, sponge iron and steel plants could not produce as per their installed capacities. About 40% of the installed steelmaking capacity remained unutilised due to the shortage.

Out of the total installed steel capacity of 33 million tonnes/year, Odisha-based steel plants produced 20.5m t/y in FY21, Kallanish notes. Similarly, pellet production clocked 22.76mt out of the total 31.69m t/y of installed capacity, while sponge iron production was noted at 7.82mt out of 15m t/y.

Owing to the underutilisation of the installed capacities, the state government lost INR 7,770 crores ($1.05 billion) of revenue in the form of Goods and Services Tax (GST).

“In the last fiscal year, Odisha merchant mines produced 23% less iron ore compared to FY20,” says the department. “During the year, around 80% of the iron ore produced in Odisha was taken outside the state. This has created a severe shortage of iron ore for Odisha-based plants as evidenced by the highest-ever surge of iron ore prices in the state.”

Owing to the shortage, small- and medium-sized steel mills fear closure of their units. Most of the iron ore produced by merchant mines in Odisha is sold to plants in Karnataka, Gujarat, Chhattisgarh and Maharashtra.

“Post the iron ore mine auctions in March 2020, the availability of iron ore in Odisha has come down,” says a local sponge iron manufacturer. “Most iron ore mines from the auction went to two-to-three large non-Odisha steel players who bid unviable premiums of more than 100% and are now operating these merchant mines as their captive mines to the detriment of MSMEs and Odisha-based plants.”

Industry experts estimate that Odisha-based steel industries will fail to utilise their full capacities again in FY22 and the government will continue losing thousands of crores of revenue.

Sayed Aameer India

voda 17 augustus 2021 12:09

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China to solicit opinions on tariff adjustments
2 Views

The China Iron & Steel Association (CISA) has issued this week a "Notice on Soliciting Proposals for Import and Export Tariff Adjustments of Steel Products in 2022" to seek suggestions from steel companies on tariff changes, Kallanish notes.

The document states steel companies should analyse the status of domestic production of relevant steel products and major problems with import and export tariff rate recommendations before reporting back to CISA. This will help establish the impact on the development of the steel industry.

In addition to the revised 2021 tariff list announced in early 2021, the Chinese steel industry has witnessed several adjustments in import and export tariffs and rebates this year. In the context of reducing domestic crude steel output, these tariffs have made exports more expensive and aim to focus trade on higher value goods.

A researcher at Haitong Futures says: ''The abolition of the export tax rebate for steel products is considered to be an encouragement to promote China's steel to continue to reduce exports and turn to domestic demand, which is related to the steel industry's production cuts and other decisions.'' He also believes these measures are part of a long-run strategy and are connected to goals such as carbon neutrality.

By Kallanish Team

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