Giá phế ferrite tăng ở thị trường Mỹ
Giá phế ferrite hôm thứ Tư tại Mỹ tăng và đã được một số nhà máy chấp nhập giá chào bán từ những nhà cung cấp khi thị trường trong tuần này khởi sắc. Các giao dịch với giá thấp hơn hồi cuối tuần trước và đầu tuần nay hiện không còn ở hầu hết các khu vực.
Một nhà môi giới nói ban đầu ông đã nghĩ giá phế sẽ giảm 10-15 USD một cách dễ dàng nhưng hiện nay thì lại đi theo hướng ngược lại.
Hôm thứ Tư, Platts vẫn giữ nguyên giá niêm yết của phế vụn tại 358-363 USD/tấn dài gồm phí vận chuyển tới nhà máy ở Trung Tây.
Giá giao dịch hồi giữa tháng 09 được ký kết với giá mềm hơn so với đầu tháng. Tâm lý thị trường cho rằng giá tháng 10 sẽ tiếp tục suy yếu do nhu cầu xuất khẩu thấp cũng như dự kiến khởi động cơ sở hoàn nguyên trực tiếp (DRI) của nhà máy Nucor.
Thế nhưng các nhà máy Thổ Nhĩ Kỳ đã đồng loạt trở lại thị trường Mỹ hôm thứ Hai tuần trước và đặt mua phế ferrite với khối lượng lớn và lần đầu tiên giá tăng lên 2 USD/tấn. Thêm vào đó, việc khởi động cơ sở hoàn nguyên trực tiếp (DRI) của nhà máy Nucor bị trì hoãn cho đến cuối năm, sau sự cố mái vòm của xưởng bị sụp.
Nhiều nhà máy trong nước đã thông báo tăng giá thép cán dẹt trong tuần này càng gây khó hiểu khi thị trường lại dự đoán là giá phế sẽ giảm.
Các nhà máy do dự khi bán họ không muốn thực hiện bất kỳ giao dịch nào ở giá giảm và một số thì chờ để có được mức họ muốn.
Các nguồn tin thị trường dự đoán các thương lượng tháng 10 sẽ còn tiếp tục kéo dài đến thứ Năm và thứ Sáu tuần này.
Xu hướng giá thép cây tháng 10 ở khu vực Trung Tây nước Mỹ ổn định
Vụ kiện chống bán phá giá đối với thép cây xuất khẩu của Thổ Nhĩ Kỳ và Mexico tới thị trường Mỹ hồi đầu tháng 09 đã không tác động khiến giá tăng như những gì giới thị trường đã dự đoán trước đó dẫn đến một số thắc mắc rằng liệu có cần một sự thay đổi về sức tiêu thụ trên thị trường thép cây Mỹ hay không để hậu thuẫn cho việc tăng giá.
Trong tuần này, nhà phân tích Sal Tharani của Goldman, Sachs & Co. báo cáo trong một bản nghiên cứu “Chúng tôi vẫn giữ quan điểm rằng các vụ kiện lần này đã không giải quyết được vấn đề mà còn làm cho nguồn cung thêm hạn chế, chỉ có sự phục hồi của lực cầu mới cứu vãn được ngành công nghiệp thép ở Mỹ”.
Một nhà sản xuất thép cây ở Trung Tây cũng đồng ý rằng với công suất hoạt động chỉ hơn 70% trong vài năm qua thì các nhà máy trong nước cần đánh giá lại nhu cầu của thị trường. Có ít nhất một nhà máy vẫn tiếp tục nỗ lực kéo dài thời gian giao hàng bằng cách giảm hàng tồn và hỗ trợ giá. “Họ đang làm mọi việc một cách “điên loạn” để ngăn không cho giá giảm”, ông nói.
Tuy nhiên, sức mua vẫn trì trệ và giá không đổi so với tháng trước. Ông đã mua thép cây trong tuần này với giá tầm 620 USD/tấn ngắn xuất xưởng.
Một nhà cung cấp khác nói rằng ông thấy dường như nhu cầu tiêu thụ đang tăng và vượt trội hơn so với những năm trước. Ông đã mua khá nhiều cho 6 tuần tới để đáp ứng đủ nhu cầu. Theo ý kiến cá nhân ông cho rằng giá sẽ tăng khi xảy ra các vụ kiện, ông đã thấy giá tăng chính thức trên các giao dịch với đơn đặt hàng lớn hơn. Tuy nhiên, giá phế có xu hướng giảm đã giúp ngăn chặn giá cả leo thang. Ông niêm yết giá bán quanh mức 620-640 USD/tấn ngắn xuất xưởng, còn tùy vào từng đơn hàng.
Mặc dù có đơn kiện nhưng thép cây nhập khẩu vẫn sẽ luôn có chỗ đứng ở thị trường Mỹ. Nếu các nhà sản xuất thép cây của Thổ Nhĩ Kỳ và Mexico phải đóng thuế khi xuất khẩu sang Mỹ thì sẽ đẩy giá bán lên cao. Trong khi thị trường nội địa tại Mỹ tháng 10 vẫn không có cơ hội tăng giá, ông dự đoán giá sẽ tăng trước tháng 12 và các khách hàng của ông cũng đã chấp nhận mua với giá cao hơn rồi, một nhà cung cấp nói.
Mỹ: Severstal NA tiếp bước tăng giá tấm mỏng
Severstal North America đã thông báo nâng giá tấm mỏng ở mức tương tự như trong công bố của các đối thủ khác vào tuần này mặc dù hôm thứ Tư người mua cho biết rằng việc đẩy giá cao hơn vẫn chưa có gì chắc chắn là sẽ đạt được.
Theo đó giá bán HRC và CRC của nhà máy này đã nâng lên lần lượt là 680 USD/tấn ngắn và 790 USD/tấn ngắn do sự tăng trưởng của thị trường nhà ở cũng như công nghiệp sản xuất ô tô.
Tuy nhiên, một nhà phân phối nói rằng giá niêm yết trước đây tại Platts cho HRC và CRC lần lượt là 640-650 USD/tấn ngắn và 745-755 USD/tấn ngắn, xuất xưởng từ một nhà máy ở Trung Tây (Indiana) và giá này vẫn không đổi cho đến ngày thứ Tư. “Cho đến thời điểm hiện nay vẫn chưa có sự kiện nào nổi bật trên thị trường, nhu cầu tiêu thụ vẫn “giậm chân tại chỗ” nên chúng tôi cũng không thể nâng giá bán mặc dù rất muốn làm điều đó”, ông này nói.
Một thương nhân cũng có chung quan điểm rằng hoạt động giao thị trường còn chậm nhưng các nhà máy dường như đang đồng lòng để đẩy giá lên, tuy nhiên không biết sắp tới có duy trì được không.
Giá thép cuộn Biển Đen tháng 10 suy yếu
Các nhà máy thép cuộn CIS trong tuần này đã rời khỏi thị trường Biển Đen sau khi chốt xong đơn hàng sản xuất tháng 10 và giao tháng 11. Họ sẽ quay lại thị trường để giao hàng của tháng 11 còn đang dang dở sớm nhất là trong tuần tới.
Đồng thời, cả người mua và người bán đều đang có tâm lý chờ xem sự cải thiện của thị trường nguyên vật liệu và động tĩnh của các nhà máy Trung Quốc sau kỳ nghỉ. Tâm lý thị trường Biển Đen cũng đã bớt lạc quan sau khi các giao dịch của hàng sản xuất tháng 10 đang thể hiện sự suy yếu rõ ràng.
Metinvest của Ukraina đã bán hết sản lượng thép cuộn cán nóng tháng 10 còn lại với giá 520 USD/tấn FOB Mariupol, tương đương khoảng 515 USD/tấn FOB Biển Đen. “Giá giảm là do sản lượng tăng. Có lẽ Metinvest đã sản xuất vượt quá nhu cầu nên thị trường không thể tiêu thụ hết”, một thương nhân quốc tế nói.
Cũng không có chào giá mới nào từ Nga được nghe nói. MMK đã xuất khẩu HRC tháng 10 với giá 540 USD/tấn FOB, nhưng ông không chắc sản lượng tháng 11 của nhà máy MMK có thể vượt quá mức hiện nay được. Tuy nhiên, ông dự đoán giá sẽ không giảm mặc dù gần đây đang có biến động theo chiều hướng xấu đi vì các nhà máy đã bị mất một khoản lợi nhuận khá lớn nên sẽ không để cho giá trượt thêm nữa.
Hôm thứ Tư, Platts đã giảm 5 USD/tấn trên giá niêm yết của HRC Biển Đen xuống 522,5 USD/tấn, còn CRC cũng giảm 3 USD/tấn chỉ có 610 USD/tấn, cả hai đều là giá FOB Biển Đen.
Thép tấm Tây Bắc Âu bước vào quý IV với mức giá bình ổn
Giá thép tấm ở Tây Bắc Âu vẫn duy trì không đổi trong tuần này trong khi các nhà sản xuất đang nhận đơn hàng cho quý IV. Hai nhà sản xuất hợp nhất người Đức nói rằng họ đã nhận được các đơn hàng cho hai tuần cuối tháng 11 với sức mua khá tốt.
Giá đã được phục hồi trong vài tháng trước do các nhà cung cấp đã nỗ lực để đẩy giá lên. Nhưng sự cải thiện này cũng không dễ dàng do thiếu lực mua cũng như gặp phải mức giá cạnh tranh từ Trung Âu, Italy và hàng nhập khẩu mà nhất là từ Ukraina.
Giá thép tấm đã tăng 20-25 EUR/tấn từ mức thấp nhất hồi tháng 07 nhưng vẫn chưa có gì chắc chắn là xu hướng giá trong quý IV sẽ tiếp tục tăng thêm nữa. Một nhà máy lớn ở Đức đã chốt thép tấm loại S235 tại 525-535 EUR/tấn xuất xưởng. Còn một nhà sản xuất khác tuyên bố rằng giá bán sẽ không thể dưới 530 EUR/tấn xuất xưởng.
Các nhà cán lại trong khu vực khẳng định giá hiện nay đều trên 500 EUR/tấn. Một nhà dự trữ ở Ruhr thừa nhận rằng tuy ông đưa ra mức giá mục tiêu là 520 EUR/tấn xuất xưởng nhưng chỉ có thể bán với giá 510 EUR/tấn xuất xưởng đối với loại S235. Căn cứ theo giá giao dịch trên thị trường trong nước, hôm thứ Tư Platts vẫn duy trì giá thép tấm tại 520 EUR/tấn xuất xưởng Ruhr.
Giá nhập khẩu cũng giữ nguyên tại 452,5 EUR/tấn CIF Antwerp. Theo các nguồn tin nhận được thì gần đây giá thép tấm xuất khẩu từ Trung Quốc tới Châu Âu vẫn không giảm. Nhưng sự thay đổi có thể sẽ được nhận thấy vào tuần tới khi kết thúc tuần nghỉ lễ ở Trung Quốc.
Theo nguồn tin cho biết, các nhà máy Hyundai Steel và Dongkuk Steel Mill Hàn Quốc đã thông báo sẽ hạ giá thu mua phế xuống thêm 10.000 Won/tấn ( 9 USD/tấn) bắt đầu từ ngày 7/10. Tuy nhiên, mức cắt giảm này chỉ áp dụng cho phế giao tới các xưởng sản xuất pử Pohang miền Đông Nam Trung Quốc.
Bên cạnh đó, các nhà máy nhỏ khác cũng cho biết sẽ hạ gái thu mua phế xuống vào tuần này hoặc tuần tới. Nhà máy Steel Shapes Co ở Busan đã thông báo cắt giảm giá thu mua phế với một lượng tương tự là 10.000 Won/tấn kể từ ngày 4/10 trong khi nhà máy YK Steel cũng cắt giảm cùng mức kể từ ngày 7/10.
Theo dự báo, các nhà máy nhỏ trong nước có thể sẽ hạ giá thu mua phế thêm 1 hoặc 2 lần nữa trong tháng này do nguồn cung dư. Hơn thế nữa, giá thép thành phẩm cũng đang giảm.
Các nhà cung phế trong khu vực cũng đang tỏ ra lo ngại về vấn đề này. Họ nhận định “ nguồn cung phế trên thị trường hiện tại không cao, do đó, không dễ gì các nhà máy thép có thể hạ giá thu mua lần nữa”. Được biết, các nhà máy nhỏ ở Busan đang mua phế H2 tại mức giá 360.000-370.000 Won/tấn (335-345 USD/tấn).
HRC Thổ Nhĩ Kỳ trông chờ vào thị trường xuất khẩu khi sức mua trong nước suy yếu
Các chào giá xuất khẩu của các nhà sản xuất thép cuộn cán nóng Thổ Nhĩ Kỳ vẫn không có gì thay đổi từ giữa tháng 09 đến nay, mặc dù giá ở thị trường nội địa đã được điều chỉnh giảm trong vài tuần gần đây. Ngoài ra, sản lượng xuất khẩu tới thị trường lớn như Châu Âu cũng giảm do giá cả không cạnh tranh so với HRC xuất xứ từ Trung Quốc và CIS.
“Các nhà sản xuất đã hạ giá chào bán của HRC xuống 585 USD/tấn xuất xưởng cho một vài lô lớn trong những ngày gần đây do nhu cầu tiêu thụ trong nước rất ảm đạm khi sắp tới lễ Eid al-Adha diễn ra vào giữa tháng này. Thêm vào đó, các khách hàng muốn trì hoãn việc đặt mua cho đến khi kết thúc kỳ nghỉ nên hiện nay các nhà sản xuất đang nỗ lực tập trung vào thị trường xuất khẩu”, một nhà dự trữ nói.
“Với chào giá xuất khẩu từ Trung Quốc và CIS tới Châu Âu đều rất thấp, hàng xuất khẩu của Thổ Nhĩ Kỳ hiện đang phải đối mặt với nhiều khó khăn khi xuất sang khu vực EU. Tuy nhiên, do chi phí đầu vào đang ngày một leo thang giữa bối cảnh đồng lira suy yếu so với đôla Mỹ nên họ không thể giảm giá chào bán thêm nữa; thay vào đó họ đang tìm kiếm các thị trường xuất khẩu khác để có thể tồn tại”, ông này nói.
Các chào giá xuất khẩu của HRC từ Thổ Nhĩ Kỳ tới Châu Âu là 570-580 USD/tấn FOB; còn giá bán trong nước là 585-600 USD/tấn xuất xưởng. CRC được chào bán với giá 690-710 USD/tấn xuất xưởng; HDG dày 0.5mm và PPGI 9002 dày 0.5mm có giá lần lượt là 790-810 USD/tấn xuất xưởng và 990-1.020 USD/tấn xuất xưởng.
Theo nguồn tin cho biết, nhà máy Posco đã thông báo sẽ duy trì giá không đổi đối với các mặt hàng thép cuộn không gỉ Ferrite và austenitic giao tháng 10.
Được biết, nhà máy này có ý định hạ giá niêm yết thép tháng 10 xuống thêm 100.000 Won/tấn (93 USD/tấn) . Tuy nhiên, quyết định này đã vấp phải sự phản đối của các nhà tiêu thụ vì cho rằng nếu giá xuất xưởng hạ sẽ khiến cho tâm lý thị trường bán lẻ suy yếu. Posco nhnaaj định tháng 10 là một thwoif điểm rất quan trọng trong việc dự báo xu hướng thị trường quý cuối.
“Sự biến động của giá niken trong tháng qua thì không mạnh nhưng vẫn có sức ảnh hưởng tới giá thép”, nhà máy Posco cho biết. Gần đây, giá niken đã trở lại ổn định và giá niken giao dịch bằng tiền mặt tại sàn London Metal Exchange được chốt ở mức 13.740 USD/tấn trong ngày 1/10. Nhà máy Posco dự báo, nhu cầu tiêu thụ thép cuộn không gỉ đã gần phục hồi do các tín hiệu khả quan từ sự phôi phục kinh tế ở cả Châu Âu và Trung Quốc.
Trong tháng 10, giá niêm yết HRC 304 và CRC 304 của Posco vẫn lần lượt đạt mức 3.2 triệu Won/tấn (2.981 USD/tấn) và 3.47 triệu Won/tấn (3.232 USD/tấn). Tương tự, giá HRC và CRC 430 cũng vẫn duy trì bình ổn ở mức 2.14 triệu Won/tấn và 2.52 triệu Won/tấn.
Trong khi đó, giá chào bán lẻ CRC 304 2mm từ các nhà máy khác lại dưới mức 3.0 triệu Won/tấn, thấp hơn rất nhiều so với giá niêm yết hiện tại của nhà máy Posco.
Thép cây Tây Bắc Âu vẫn duy trì 480 EUR/tấn bất chấp sức ép trên thị trường
Giá thép cây trên thị trường Tây Bắc Âu được niêm yết tại Platts hôm thứ Tư vẫn đang giữ ở mức 480 EUR/tấn xuất xưởng, mặc dù giá phế có xu hướng giảm ở thị trường trong nước và thế giới đang gây sức ép cho các nhà máy ở đây. Các nguồn tin cho biết trong tuần này thị trường khá ảm đạm do người mua đang chờ các thông báo giảm giá trước khi ra quyết định đặt mua.
Theo nguồn tin tại Pháp và Benelux, chào giá từ các nhà máy Tây Bắc Âu đang dao động quanh mức 250-260 EUR/tấn cơ bản gồm phí vận chuyển (490-510 EUR/tấn giao thực tế) với thời gian giao hàng khoảng 2-3 tuần. Tuy nhiên, một nhà dự trữ nói rằng chênh lệch giữa chào giá trong nước và xuất khẩu của các nhà máy ở khu vực EU hiện nay rất cách xa nhau. Ông này cũng hi vọng là các nhà máy sẽ bắt đầu có những khoản chiết khấu cho người mua trong nước khi họ đã thực hiện xong việc giao hàng bị dồn lại trong suốt mùa hè vừa qua.
Một thương nhân xác nhận rằng các nhà sản xuất Châu Âu bị buộc phải hạ bớt giá chào bán của họ xuống dưới 450 EUR/tấn FOB vì thị trường không chấp nhận chào giá mới, ngoài ra giá bán của Thổ Nhĩ Kỳ có vẻ như cạnh tranh hơn do sự suy yếu của đôla Mỹ so với euro.
“Chúng tôi đang khuyên các khách hàng rằng hãy khoan mua vội vì trong những tuần tới sẽ có một đợt giảm giá trước khi có khả năng phục hồi trở lại vào cuối năm”, một thương nhân nói.
Với mức 480 EUR/tấn xuất xưởng như hiện nay thì vẫn thấp hơn khoảng 20-30 EUR/tấn so với cùng kỳ năm ngoái; tuy nhiên, nó vẫn cao hơn 30 EUR/tấn so với mức thấp nhất được thiết lập vào đầu tháng 07 năm nay.
| Special report: China needs no steel imports, CISA claims | ||
| China imports steel not because it cannot produce certain types but because it has to abide by contracts with foreign companies; China can produce 100% of its own needs, Zhu Jimin, executive vice chairman of the China Iron & Steel Association (CISA) told a conference in Qingdao last week. "China is totally self-sufficient in national defense and national economic development and could produce 100% of steel demand in the country; however, it has to import because of contracts signed with foreign companies," Zhu said. In the future, foreign automotive joint ventures (JVs) could source more steel products domestically, and some have begun to, a northern Chinese steel mill source said. The Guangzhou Hongda automotive JV, for example, only used steel imported from JFE Japan before JFE launched its joint venture steelworks in Guangzhou in early 2007. At that time, Shanghai-based Baosteel and northeast China-based TAGAL, a JV between China's Anshan Iron & Steel and Germany’s ThyssenKrupp, could supply qualified automotive sheet required by Hongda, but these were rejected, Platts notes. Meanwhile, a contact from DSME Shandong Co, a 100% subsidy of Korean shipbuilder DSME, said the company was only allowed to use materials imported from Korea to make spare parts for ships in order to guarantee the quality of its products. Oil country tubular goods are now 98% supplied domestically, a senior analyst at Tianjin Pipe Group Corporation told a conference in Zhenjiang on September 28. However, China still has to import some high-specification products, he noted. China's Tarim Oilfield is importing Japan-made Super13Cr tubing, which Chinese mills have only recently begun to produce, as imported tubing has more stable performance, Wuxi Seamless Oil Pipes told the same conference. China imported 9.23 mt steel products in the first eight months of 2013, down 0.9% year-on-year, according to customs statistics.
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| NW European rebar stable at €480/mt, despite pressure | ||
| The northwest European Platts daily rebar assessment was stable on Wednesday at the level of €480/metric ton ex-works as mills are currently resisting in their domestic markets the downward pressure coming from scrap and the international trade. Sources noted that the market this week was particularly calm as buyers are awaiting further price reductions before placing new orders. According to sources in France and Benelux, offers from northwest European mills are averaging €250-260/mt base delivered (or €490-510/mt effective delivered) with lead-times of some 2-3 weeks from most producers. Nevertheless one stockholder noted that the differential between domestic and export offers from EU mills was too high at the moment. “We expect European mills to start giving discounts to domestic buyers once they have fulfilled completely the delivery of orders accumulated during the summer period,” the stockholder noted. One trader confirmed that European producers were forced to lower their offer prices below €450/mt FOB as the market was not accepting their offers and Turkish mills were seen more competitive due to the weakness of the dollar against the euro. “We are advising our clients to wait before placing new orders as we believe the next weeks will bring price reductions in Europe before a potential new recovery at the end of the year,” the trader noted. At €480/mt ex-works the current rebar assessment remains some €20-30/mt below the price level registered in the same period last year; nevertheless it is over €30/mt above the lowest point registered this year at the beginning of July.
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| Special Report: Egypt sales tempt CIS billet traders | ||
| Egyptian re-rollers have started bidding for billet from the CIS for October shipments at higher levels compared to last week, while some mills selling on cash payment bases are not offering for October output, market participants told Platts on Wednesday. Re-rollers in Egypt confirmed offers for bulk cargo were lodged at $520-525/metric ton CFR Alexandria/Damietta by traders for October-November shipments. A prompt load was sold at $523/mt CIF Alexandria by one trader for 10,000 mt, for instance, although bids were generally $5/mt lower than this price. Platts daily assessment inched up $2/mt to $497/mt FOB on Wednesday in light of slightly higher prices seen to Egypt. A risk premium exists for sales to Egypt as some banks decline to confirm letters of credit from the country, which is not the case for other large importing nations such as Turkey, several traders concurred. In Turkey the highest bid for a bulk cargo was seen at $515/mt CFR Iskenderun for October shipment; even though offers of billet to other ports are higher than this, and scrap has stabilized, not many Turkish players are jumping in to the billet market yet. "Just before the Bayram (religious holiday in mid-October) there could be some activity from Turkish buyers, but at the moment not everyone is sure about where the market will be in November," one international trader said. Some one-off request in United Arab Emirates was also regularly cited: 30,000 mt of CIS-origin billet was being bid for by a large integrated steelworks there. However, many traders were slightly worried as some mills selling on pre-payment bases said that no material would be available for position-taking in October due to raw material costs in Ukraine, taking nearly 40,000 mt out of the market. One mill offering to traders was selling October output at around $490-492/mt FOB Mariupol on 30-50% cash payment, according to market participants, in lots of around 10,000 mt. At least three buyers have taken positions at this level, Platts heard.
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| Turkish HRC mills look to exports amid weak domestic demand | ||
| Turkish hot rolled coil producers’ export offers remain stable since mid-September, despite the downward price adjustment seen in the local market in recent weeks. Sales to major export market Europe are low, however, as Turkish HRC prices are uncompetitive there against product of Chinese and CIS-origin, market participants told Platts on Wednesday. “Turkish producers lowered their offer prices in the domestic market to as low as $585/metric ton ex-works for a few large orders in recent days, as domestic demand is low on the eve of the ten-day Eid al-Adha holiday in mid-October. However, since local buyers prefer to postpone their bookings until after the holiday period, producers are trying to focus on the export markets at present,” a stockist said. “With Chinese offers to Europe very low, however, and CIS offers also cheap, although to a lesser extent, Turkish mills are facing difficulties striking a deal with European buyers at current prices. However, as their input costs are rising every day amid the weakening Turkish lira against the dollar, they haven’t lowered their prices further; they are instead trying to diversify their export markets,” he added. Turkish producers’ HRC export offers to Europe are at $570-580/mt FOB, Platts learned. Meanwhile, Turkish mills’ HRC offers to the local market are now at $585-600/mt ex-works. Producers are asking for $690-710/mt ex-works for cold rolled coil, $790-810/mt ex-works for 0.5mm thick hot-dip galvanized coil and $990-1,020/mt ex-works for 0.5mm thick 9002 code color-coated galvanized coil (PPGI), Platts heard.
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| Ferrous scrap prices firm in US market | ||
| Ferrous scrap prices firmed in the US market on Wednesday with some mills accepting sideways offers from dealers as market dynamics shifted this week. Lower-priced deals observed late last week and early this week were not available in most regions, but mill appetite remained healthy and dealers balked at lower bids. “A market we initially felt would be down easily $10-15 is now looking sideways on obsolete grades,” one midwestern US scrap broker source said. The Platts daily assessment for shredded scrap remained at $358-363/lt delivered Midwest mill on Wednesday. Mid-month scrap deals had been concluded at softer pricing than early-month deals in September. Market sentiment for October pricing had ranged from sideways to down based on softening export demand and the anticipated startup of Nucor’s direct reduced iron (DRI) facility. Turkey returned to the US market en masse starting last Monday buying steady volumes of US ferrous scrap with prices remaining firm at first and inching up $2/mt through the week. Meanwhile, Nucor’s DRI facility startup was delayed until year-end after the collapse of storage dome at the facility. “A major impetus for downward pressure this month was the forthcoming DRI production, lax export demand and numerous mill outages,” one Southeast broker source said. “These dynamics have shifted, prompting more bullish sentiment further enhanced by improved finished steel pricing and expanding mill lead times.” Numerous domestic mills announced flat-rolled price increases this week, further confusing a market that had been expecting scrap costs to soften. “Mills came in so early and tried to buy down; guys were hesitant to sell, they didn’t want to make any deals at these down numbers and some waited and got what they wanted,” one Midwest dealer said. “People were pushing down $10 but you have mills running at the same rates and some mills in the Northeast with better buy programs. It didn’t make sense.” Market sources expected October negotiations to continue throughout Thursday and into Friday.
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| CSN's 'tag-along' suit against Ternium dismissed | ||
| A Brazilian court has dismissed a lawsuit filed by Brazilian steelmaker CSN against Latin American steelmaker Ternium, as well as its subsidiaries tubemaker Confab and Argentinian steelmaker Siderar. The suit was related to the January 2012 purchase by the Ternium companies of shares in Brazilian steelmaker Usiminas. Filed in February 2013, the CSN lawsuit alleged that under Brazilian law the participants in the shares acquisition (the Ternium companies) were required to launch a "tag-along" tender offer to all minority holders of Usiminas ordinary shares for a price per share equal to 80% of the price per share paid in the January 2012 acquisition of Real 28.8 ($13.11). As reported, if so ordered, the offer would have applied to 182,609,851 ordinary shares of Usiminas not belonging to the Usiminas control group. According to an official document, the court dismissed the lawsuit on the grounds that "total control (of Usiminas) was not transferred, remaining under the ownership of the same control block." The control block of 63.86% remained in tact after the acquisition. Previously, the control group was made up of Nippon Group with 27.76%, Votorantim/Camargo Corrêa, 25.97%, and the employees' pension fund, 10.13%. The Nippon Group now holds 29.45%, the Techint group, 27.66% and the employees' pension fund, 6.75%. "These figures provide clear evidence that the acquisition did not matter in obtaining control of the company," the document said. CSN had been buying shares in Usiminas since January 2011 and holds 20.14% of Usiminas preferred stock and 11.97% of its common shares as of December last year. A CSN spokesman told Platts the company plans to appeal the decision.
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| NSSMC starts new galvanizing plant in Thailand | ||
| Nippon Steel & Sumitomo Metal Corp (NSSMC) began commercial production at its new 360,000 metric tons/year hot-dip galvanized and galvannealed sheets production plant in eastern Thailand on October 1, the Japanese steel giant announced Wednesday. Nippon Steel & Sumikin Galvanizing (Thailand) Co (NSGT), located in Rayong’s Hemaraj industrial estate and wholly owned by NSSMC, is still seeking automaker approvals for its sheets, however. “Whenever we receive approvals, we can lift production,” a NSSMC spokesman said. Just what this year’s output will be remains unclear but the company aims to reach full production within two years. Auto production in Thailand will likely reach 2.45 million units this calendar year, over 90% of which will be Japanese-branded, Platts notes. “Demand for auto sheet in Thailand is firm because Thai auto makers are supplying for domestic sale and also for export,” NSSMC’s spokesman said. Most of the cold rolled coil substrates NSGT requires is sourced from Siam United Steel (SUS), NSSMC’s 1 million mt/y CR mill located adjacent to the HDG plant. SUS is currently operating at a very high level, producing CRC and tin mill black plate, but NSSMC insists SUS has scope for supplying CRC to its new neighbor. “When NSGT reaches full production, CRC supplies from SUS may become short, but we may adjust the ratio between the production of CRC and blackplate at SUS," the spokesman said. CRC could also be imported from Japan or elsewhere. The new Rayong plant gives NSSMC eight production bases abroad for auto sheets in six countries – China, Thailand, USA, Mexico, Brazil and India (to start operating from January 2014). The company’s total capacity abroad for auto sheet (including CRC and galvanized) will be about 7 million mt /y by January 2015.
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| Japanese coil stocks rise in August | ||
| Stocks of hot rolled, cold rolled and coated coils at Japanese steel producers, distributors and coil centers at end-August were 4.3% or 161,000 metric tons higher than at end-July, at 3.92 million mt, according to the data compiled by Nippon Steel & Sumitomo Metal Corp (NSSMC). But market watchers Wednesday, citing seasonal factors, said they were relaxed about the climb and that the trend in Japanese flats demand remains firm. “We expect that stocks at end-September were lower, because the market has been active,” a distributor in Tokyo said. Stocks at producers grew by a significant 7.1% to reach 1.8 million mt in August, while those at dealers grew by 2.8% to 765,000 mt and at coil centers by 1.5% to 1.35 million mt. A Tokyo-based trader said the larger comparative rise in mill stocks was because producers had to slow deliveries while their customers took summer holidays. “Stocks at end-August usually increase because of summer but the margin of the increase this year was smaller,” he said. According to NSSMC’s data, stocks of HRC, CRC and coated coils at end-August in 2011 and 2012 rose by about 170,000 mt from the previous month. By product, stocks of HRC increased by 4.5% to 2.08 million mt, those of CRC by 2.3% to 718,000 mt and coated coil stocks by 5.3% to 1.12 million mt. “The increase in CRC stocks was smaller because of the impact of the stoppage at Nisshin Steel’s CR mill in Sakai,” Platts was told. A fire halted operations on the 1.2 million mt/year mill from June 3 and production only restarted on July 16, as reported. The stock ratio at end-August for the three flat rolled products was 2.21 months, up from 2.13 months at end-July.
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| Posco holds stainless steel coil prices for October | ||
| Posco has kept the domestic list prices of its austenitic and ferritic stainless coil products unchanged for October from the previous month in response to request from its clients, the Korean company said. The steelmaker had initially mulled over a decrease of Won 100,000/metric ton ($93/mt) for this month, according to a company statement released on Monday. But its consumers requested that prices be frozen out of concern that lower list prices would weaken sentiment in the retail market, The company added that October was the most important month to predict the market’s direction for the fourth quarter. “The change in nickel prices (over the month) was not significant either so we decided to maintain our prices,” a Posco official said. Recently nickel prices have stabilized and its cash prices on the London Metal Exchange finished at $13,740/mt on October 1, Platts noted. The official added that domestic demand for stainless coil is poised to improve as there is a sign of economic recovery in both Europe and China. For October, the Korean steelmaker’s list price for grade 304 hot rolled coil remained at Won 3.2 million/mt ($2,981/mt) and that for 304 cold rolled coil at Won 3.47 million/mt ($3,232/mt), it said. Those for its grade 430 HRC and CRC were unchanged at Won 2.14 million/mt and Won 2.52 million/mt respectively. Retail offer prices of grade 304 2mm thick CRC produced by Korean mills were prevailing at just below Won 3.0 million/mt on Wednesday, much lower than Posco’s list prices but at similar levels from a month earlier.
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| Korea steelmakers cut scrap buying prices | ||
| Korean steelmakers Hyundai Steel and Dongkuk Steel Mill will lower their buying prices for domestic scrap by Won 10,000/metric ton ($9/mt) for all grades effective October 7, the two declared in separate announcements Tuesday. But the reductions only apply for scrap delivered to the steelworks the mills operate in Pohang in Korea’s south-east, they said. Besides these major producers, other smaller steelmakers are also warning their domestic scrap suppliers they will be paying less for material from this week and early next, Platts was told. Busan-based Korea Steel Shapes Co will slash its buying prices by the same Won 10,000/mt margin from October 4 while YK Steel will clip its prices by the same amount from October 7. Other industry sources predicted that mini-mills may be pondering a further reduction or two in their purchase prices within this month, arguing that scrap stocks seem to be sufficient. Moreover, finished steel prices are also depressed. However, local scrap suppliers surveyed by Platts were skeptical that the steelmakers would continue shaving their buying prices. “We reckon that scrap stocks in the market are not so high at present, (so) for the mini-mills to reduce their buying prices again soon will not be easy,” a scrap seller in Busan said. Mini-mills in Busan were paying Won 360,000-370,000/mt ($335-345/mt) for domestic H2 grade scrap on Wednesday. Hyundai claimed last week to be nursing higher than usual levels of scrap and local deliveries were smooth, as reported.
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| Japan’s steel exports rise again in August | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||
| Japanese steel exports rose again in August, edging up 2.4% from July and by 1.3% year-on-year to reach 3.73 million metric tons, according to Japan Iron & Steel Federation (JISF) data released on Wednesday. Yet despite the increase – the first in two months – the steelmakers’ lobby group remained pessimistic, with a spokesman observing that exports have hovered around the 3.6-3.7 million mt/month level for recent months. “Japanese steel exports may not grow further,” he told Platts, claiming that oversupply by rivals in other Asian countries was hampering efforts by the Japanese mills to lift export volumes. But he admitted that recovering demand at home may prove another factor preventing Japanese exports from rising further. “Steel demand from domestic construction has been firm and that for auto manufacturing is also recovering. The Japanese mills can enjoy supplying in Japan and have no need to be eager to export,” the spokesman said. But there will be exceptions. “Japan’s HRC exports are rising because the steelmakers are supplying their own downstream plants overseas, and this trend will continue,” he said. Japanese HRC exports in August topped 1 million mt, climbing by 6.1% from July and by a healthy 14.1% from August last year. But higher downstream production means exports from Japan will inevitably decrease, as seen in the 13% on-year drop in CRC exports to 263,515 mt and near 10% slide in galvanized exports to 373,221 mt. By country, steel exports to Korea dipped 3.6% on-year to 673,240 mt and those to China by 5.2% to 499,643 mt – two countries whose climb in domestic capacity has usurped Japanese exports, Platts notes.
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| India’s Sail registers 8% sales growth in April-September | ||
| State-owned Steel Authority of India (Sail) achieved sales of finished steel during the first April-September half of its current fiscal year totalling 5.7 million metric tons, up 8% on-year, the company has announced. Within the total, exports accounted for 190,000 mt, Sail said, and though comparatively small, this total nevertheless represents a huge 37% jump over the same period last year. The weaker rupee was the chief contributor to the steelmaker’s success in foreign sales, with the bulk of the export total – some 130,000 mt – being sold in July-September when the rupee fell to record lows. Nevertheless, even before the weaker currency began lending a hand, Sail had already doubled its export sales target for the current fiscal year ending next March to 700,000 mt from 350,000 mt previously. The company had noted increasing demand from the international market, said a Sail spokesman. Regarding production, during April-September, Sail produced 6.5 million mt of saleable steel, an increase of 4% from H1 last year and the highest ever for a first half, according to a company statement. The growth in production and sales volumes is in line with the additional capacity Sail is commissioning across its plants to ramp overall hot metal production capacity to 19 million mt/year within this fiscal from 14 million mt/year currently. Contributing to this increase will be the new blast furnace blown-in at Sail’s Rourkela Steel plant in Odisha state, eastern India in August. The large 4,060 cubic meter furnace increased the Rourkela plant’s hot metal capacity to 4.5 million mt/year from 2 million mt/year previously. The Rourkela plant would eventually be upgraded to produce 10 million mt/year by March 2017, Sail’s spokesman confirmed.
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| China's DCE to test iron ore futures platform October 12 | ||
| China’s Dalian Commodity Exchange (DCE) is finalizing preparations for launching its iron ore futures and has scheduled a second round of tests for its trading platform on October 12, a DCE official confirmed. "We are very close to the final launch,” the official said Monday. “Technically, we can start trading ore within this month after the system is proven reliable." The first test conducted on September 28 attracted 153 registered member companies and was deemed a success, she said. Nevertheless, the China Securities Regulatory Commission (CSRC) has the final say on the launch date, she added. Chinese businesses and organizations are shut this week as they observe the country's National Day holidays over October 1-7. The DCE’s upcoming test will be similar to that conducted last Saturday and involve mock trading of eight months of futures contracts. Meanwhile, in the DCE’s final iron ore contract specifications tabled in September, the exchange removed Dalian port in northeast China’s Liaoning province from the list of ports it recognizes for stockpiling and deliveries. "Dalian port had been optional – just in case (Brazilian miner) Vale won access to the port’s terminals for its very large ore carriers,” the official explained. “But this seems some way into the future so we do not have to worry about it yet." The six ports in the exchange’s final list are Qingdao, Jingtang, Caofeidian, Rizhao, Tianjin and Lianyungang, all being popular for imported iron ore unloading and warehousing.
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| NW Europe plate market enters Q4 with stable prices | ||
| Commodity plate prices in northwest Europe have stayed largely stable this week whilst producers were taking orders for their Q4 output. Two German integrated mills said they were already beyond the second half of November with their bookings, with demand described as fairly good but not varying from sector to sector, Platts heard. Pricing has become stronger over the last couple of months since the suppliers have been pushing for higher settlements. The price recovery has not been easy due to the lack of more robust pick-up in demand and competitive offers from Central Europe, Italy and overseas, particularly Ukraine. Prices for commodity grade have climbed €20-25/metric ton since the bottom in July but the outlook for further into Q4 is uncertain. The material from a large mill in Germany was pegged at €525-535/mt ex-works for S235 grade. Another producer claimed it was not coming down below €530/mt ex-works. “Local re-rollers are not so far away. They are definitely over €500/mt now,” a senior source at a mill noted. Also, a major stockholder in the Ruhr admitted he was aiming for €520/mt ex-works but did some sales at €510/mt ex-works for S235 grade. Taking into account the price levels heard in the market for domestic material, Platts daily price assessment stayed unchanged at €520/mt ex-works Ruhr on Wednesday. Imports assessment is also stable at €452.5/mt CIF Antwerp. Sources contacted by Platts did not see the recent softening in the Chinese plate quotes weighing on the import offers in the European ports. The possible impact might be visible next week after Chinese holidays.
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| Another northern European HRC swap trades | ||
| Another northern European hot rolled coil swap traded Wednesday, brokers and traders said. The trade was 1,000 metric tons/month for the first quarter, at €455/mt, and involved a trader on the buy-side. It was brokered by FIS. The offer was originally at €460/mt, for 1,000 mt/month, before being lifted at the lower level, traders and brokers said. A northern European HRC swap also traded Tuesday, again brokered by FIS and involving a bank and trader. That trade was 340 mt/month for the fourth quarter, at €457/mt, sources said. Neither trade had been cleared by LCH.Clearnet at the time of writing, but both were expected to go through, according to brokers. LCH clears northern European HRC swaps against references prices published by The Steel Index (TSI), a specialist pricing unit of Platts operating under its own methodology. On Tuesday TSI's daily reference price for northern European HRC fell €6/mt to €461/mt. These trades followed a calendar 2014 trade going through for 500 mt/month at €482/mt Friday, as reported.
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| Dillinger to cut jobs on linepipe 'collapse' | ||
| German plate producer Dillinger Hütte has said it will cut jobs as part of a €120 million/year savings plan to combat falling prices and a “drastic” collapse in the linepipe market for plate. Although volumes in its heavy plate business were running well, the company said the global steel market remained characterised by overcapacities. “Above all, the market in Europe is under pressure and is hardly showing a tendency towards recovery. Dillinger Hütte expects 2013 to be a very difficult year. The company is suffering from too low prices across the board and from the abrupt and drastic collapse in the linepipe plate sector,” it added. A spokesperson told Platts the savings plan would include job losses, but did not confirm how many of the 5,400 workers currently employed at the site in Dillingen, southwest Germany, would be affected. A “number of other measures” have also been decided as part of the plan, the spokesperson said, but are yet to be fully worked out. These include “increasing prices in line with the market,” although the spokesperson could not confirm when any price rises might be introduced. Dillinger Hütte’s group sales fell 9% year-on-year in 2012 to €2.5 billion owing to a “dramatic” rise in raw material costs and weak demand, CEO Karlheinz Blessing said earlier this year.
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| Turkish HRC exports up on-year in August on US demand | |||||||||||||||||||||||||||||||||||||
Turkey’s hot rolled coil exports increased 54% year-on-year in August to 79,640 metric tons, according to Turkish Statistical Institute (TUIK) data. However, this figure was down 34% on the 123,651 mt exported in July. Market sources attributed the y-o-y surge in August mainly to higher demand from US. As a result of cheaper CIS and Chinese-origin offers to Europe, however, August export volumes declined notably from the previous month. Turkey’s main HRC customer in August was again Portugal, which took in 21,665 mt. The most remarkable August intake came from the US, which imported 15,333 mt of HRC from Turkey, up from only 514 mt in the corresponding month in 2012. Italy (13,110 mt) and Morocco (7,230 mt) ranked third and fourth respectively. Cold rolled coil exports also increased 10% y-o-y in August to 6,811 mt. Coated flat steel exports, however, declined 37% to 40,708 mt – the main buyers were Romania (5,385 mt), Ukraine (4,686 mt) and Russia (4,316 mt). Uncoated flat steel exports below 600mm width totaled 2,762 mt in August, down 4% y-o-y; exports of coated flat steel below 600mm were also down 31% to 2,568 mt, Platts learned from TUIK’s data.
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| Construction seen powering Turkey's GDP growth | ||
| Construction sector growth is set to continue to power Turkey's economy and GDP growth this year and in the near-term, according to Turkish Steel Producers' Association (TCUD) general secretary Veysel Yayan. In the first half of this year, construction grew 6.8%, nearly double the 3.7% GDP growth witnessed over the same period in Turkey. The steel sector in Turkey shrank by 4.6% at the same time. Yayan said at the recent Irepas conference held in Istanbul that construction will continue to push ahead, aiding the steel sector and the country's economy. In figures presented to delegates, Yayan pointed out that 52.7% of Turkey's long products output is consumed locally, leaving a possible surplus of 9.9 million metric tons for export this year – a figure that will remain steady in 2014, according to TCUD predictions. Other market participants present at the conference agreed with this theory. "The Turkish government is trying to lower unemployment by approving construction projects around the country – this should underpin economic growth in the country," one steelmaker producing both flats and longs said. One trend seen this year is that less billet has been produced (-3.8%), even though 1.2% more finished longs have been made. Yayan put this trend down to the 36% increase in billet imports to Turkey from regional countries.
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| Ugitech hikes European and export stainless bar prices | ||
| Schmoltz + Bickenbach’s French subsidiary Ugitech on Wednesday announced a €100/metric ton price increase, effective immediately, on new orders of stainless steel bar, wire rod and drawn wire products. If successful, this increase would lift base prices for type 304L stainless bar, which have been tracking a mostly downward path for more than 2½ years, above €1,000/mt, a level last seen in the middle of 2012. But with the European stainless bar market stable, rather than showing any sign of a vigorous recovery, and the second half year traditionally weaker than H1 as buyers start to look towards minimising year-end inventories, achieving an increase of this magnitude will be challenging, observers said.
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| GMH's Judenburg installs third peeling line | ||
| Engineering steel producer Stahl Judenburg has installed a third peeling line at its works in Styria in southeast Austria, increasing capacity by 50%. Judenburg’s parent company, the Germany-based Georgsmarienhütte (GMH) group, invested €5.2 million in the line, which will raise the site’s bright bar capacity from 44,000 metric tons/year to 66,000 mt/y.
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| Declining Turkish steel export trend accelerates in Sep | ||
| Turkish steel exports decreased 6.6% year-on-year in January-September to 13.93 million metric tons, due to unfavourable global economic and political developments, as well as antidumping probes and protectionist measures against Turkish steel products, especially in US and Colombia, according to the Turkish Steel Exporters’ Union (CIB). The revenue generated from these exports was down 10.5% to $10.55 billion as a result of the downward trend in global commodities prices, CIB said in a statement sent to Platts on Wednesday. The Middle East remained by far the main destination for Turkish steel exports in January-September, taking in 5.8 million mt. Shipments to Saudi Arabia, however, plummeted 39.6% in that period. The EU imported 2.09 million mt, while North Africa imported 1.4 million mt. Rebar was by far the most exported product at 6.2 million mt, with steel pipe second (1.4 million mt) in the period. These were followed by billet (1.3 million mt), profiles (1.2 million mt) and hot rolled coil (1.1 million mt). In September alone, steel exports declined 15.3% y-o-y to 1.3 million mt. The revenue generated from these exports was down 13.5% to $1.03 billion, Platts learned from CIB data.
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| Black Sea coil prices weaken for October settlements | ||
| CIS coil mills have been out of the Black Sea market this week after closing their order books for October rolling, November delivery. They should return with their November allocation midway through next week at the earliest, market participants said. In the meantime, both buyers and sellers are waiting to see developments in raw materials markets and what moves Chinese mills make after this week’s holiday. The sentiment in the Black Sea market has become somewhat less optimistic after October rolling settlements showed weakening. Ukraine’s Metinvest sold out its remaining October hot rolled coil tonnages at $520/metric ton FOB Mariupol, which translates roughly into $515/mt FOB Black Sea. “The prices decreased as the capacity increased. Metinvest most likely has more material and the market cannot digest so much,” an international trader observed. No new offers from Russian mills have been heard of either, sources told Platts. MMK sold its October HRC export allocation at $540/mt FOB, a source in the market confirmed; but he was doubtful the mill would be able to roll over this level for November output. He did not, however, anticipate a steep fall in prices despite their recent downward movement. “Mills are losing too much money to allow it,” he said. Platts price assessment for Black Sea HRC slipped $5/mt to $522.5/mt, while the CRC assessment went down $3/mt to $610/mt, both FOB Black Sea, on Wednesday.
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| NLMK starts up second shredder as its scrap needs grow | ||
| NLMK Vtorchermet, the scrap arm of Russian steelmaker NLMK, has commissioned its second shredder. Like the first it is situated in the Moscow region. Partly thanks to the increased processing capacity, NLMK now aims to double the turnover of its Moscow branch over its 2012 level to 800,000 metric tons by 2016. The shredder supplied by Germany’s Metso Lindemann is situated on the 340,000 mt/year scrap-yard in Podolsk, a strategic scrap supplier to NLMK’s 1.5 million mt/year electric arc furnace-based mini-mill in Kaluga, 80 km southwest of Moscow. The machine has a capacity of 100 mt/hour or approximately 360,000 mt/year, and is designed to process mainly light scrap (Russian grade 12A). Now equipped with two shredders, NLMK Vtorchermet has increased its shredding capacity to over 500,000 mt/y. Although NLMK’s Russian steelworks may absorb up to 5.9 million mt/y of scrap if their now 16 million mt/year crude steelmaking capacities are fully utilized, over 80% of their current scrap needs are met by NLMK Vtorchermet. The latter’s yards have a combined processing capacity of 3.5 million mt/year and last year supplied 100% of NLMK’s scrap needs at its Russian steelworks, 3.2 million mt. Of this, 2.9 million mt was material NLMK Vtorchermet processed itself and the balance purchased from independent merchants. This year, NLMK may consume somewhat more scrap as the company has commissioned the Kaluga works which, in theory, hiked the company’s maximum possible scrap needs by 40%. NLMK aims to maintain over 80% self-sufficiency in the material this year too.
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| HRC unchanged at $640-650/st in US | ||
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| Hikes not yet budging CRC from $745-755/st level | ||
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| Severstal NA moves up on sheet, buyers still uncertain | ||
| Severstal North America has announced its own flat-rolled price increase comparable to similar independent hikes announced by rival mills this week, though buyers said Wednesday the push for higher pricing may be on shaky ground. Severstal’s increase, which bumps hot-rolled coil base prices to $680/st and cold-rolled base prices to $790/st, is based on growth in the housing and automotive markets, according to a customer letter. “Most major markets continue to grow at a steady pace driven by automotive sales and the demand for single family homes,” the letter stated. “The direction in 2014 appears positive.” A service center source, however, said market fundamentals are level from Platts previous assessment of $640-650/st for hot-rolled coil and $745-755/st for cold-rollled coil, normalized to a Midwest (Indiana) ex-works basis. The assessment was not changed Wednesday. “As I see it, it is a non-event so far. There is no real basis for it,” he said. “Demand is absolutely unchanged, and we aren’t able to get our prices up in the market.” He added that his company “would love for it to take hold,” but it is “nothing but quiet out there.” A trader also said that market activity is low, but mills will likely collect part of the increase. “I see a portion of it sticking,” he said. “Where it goes from there, who knows?”
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| Midwestern US rebar buyers see steady October prices | ||
| The unfair trade case against Turkish and Mexican rebar producers filed in early September by US mills is not having the upward effect on prices that market participants had anticipated, leading some to wonder if there needs to be a fundamental change in the US rebar market to support prices. Goldman, Sachs & Co. analyst Sal Tharani said in a research note this week, “We maintain our view that these cases do not resolve the issue and only supply discipline and/or demand recovery could bring the steel industry back to its health.” A midwestern US rebar fabricator agreed that with capacity utilization just above 70% for the last several years, he believes domestic mills might “need to reevaluate market requirements.” At least one mill continues to try to extend lead times by eliminating floor stock, and support prices. “They’re going to fight like crazy not to let (prices) erode,” he said. However, he said demand has been steady and his prices remain unchanged month on month. The fabricator bought rebar this week for $620/st, ex-works. Another midwestern rebar fabricator said he’s seen a pick up in demand that’s surpassed what he’s seen in the last few years. “I’ve pretty much bought for the next six weeks,” he said, though he’s just covering his needs. While his initial instinct was for prices to go up after the trade case filing, he has seen sideways pricing officially and room for deals on larger orders. The downward trend in scrap prices has helped thwart price rises, he said. He quoted prices at $620-640/st, ex-works depending on the order. Despite the trade case filing, a rebar distributor said imports will always have a place in the US market. “I think the domestic mills need to realize that it’s a world economy,” he said. If Turkish and Mexican rebar producers receive duties for rebar exports to the US, the distributor expects domestic prices will increase. While domestic mills have not raised his prices for October, he believes rebar prices will increase by December. His customers are already accepting higher prices, he said.
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| Mexico adds stainless products to North Korea embargo | ||
| Mexico's economic secretary announced on Wednesday the expansion of the list of products the country cannot trade with North Korea to include stainless steel. Originally published in 2006, the list was established in protest of the Asian country's nuclear activities. This is the first time that steel products have been included in the ban. The stainless products for which trade is prohibited include sheet and coil, strip, bar and profiles. Mexico and North Korea did not trade any of these products during the first half of this year, according to the most recent statistics available from the economic secretary. The steel trade between the countries in general is weak. In 2012, Mexico's steel-related exports to North Korea totaled 1,566 metric tons, while imports were 694 mt.
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| Chilean rebar shipments fall 9% in August | ||
| Rebar shipments totaled 49,919 mt in August, a reduction of 8.9% compared with the 54,806 mt registered the previous month, according to statistics from Chile's construction chamber (CChC). On a year-on-year basis, there was a 10% decrease. In the January-August period, deliveries totaled 416,672 mt, down 2.3% from 426,420 mt in the same period of 2012. In the year-to-date period, demand was impacted by the rainy season that started in mid-June, which prevented construction companies from undertaking concrete-stage of work. In September, market sources contacted by Platts said demand was even worse due to the national independence holiday, which was officially held on September 18 and 19, but in fact halted activity for one week and slowed business for an additional week. The domestic rebar market is supplied by two mills: CAP Acero, which has the capacity to roll 1 million mt/year of longs, and Gerdau, a 470,000 mt/year longs producer. About 20-30% of Chile's rebar market is supplied by imported rebar that comes mainly from Spain and Turkey.
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| Argentina’s GDP up despite lagging steel demand | ||
| Argentina's GDP grew 2.6% quarter on quarter and 8.3% year on year in the second quarter, however the steel sector was not a strong contributor to the country's economic growth, according to data from the national institute of statistics and surveys, Indec. Indec statistics more specific to the steel industry were not available. Growth in the country's economy was mostly related to the industrial sector, of which the steel industry is a part. The industrial sector represents 25% of GDP and had growth of 8.4% year on year in Q2. Indec attributed the industrial sector growth to the good performance of automotive and agricultural businesses. The construction sector also expanded for the first time in five quarters - with Q2 GDP up by 2.23% year on year. While these steel-consuming industries saw gains, their growth did not translate into increased steel demand for flats or longs, distributors noted. Although Argentina's automotive sector produced 536,367 units in the January-August period against 477,362 in the same period of 2012, flats demand did not see gains. Also, long steel orders from the construction sector should have risen especially due to this month's elections, however that did not occur. Argentina's GDP growth in Q1 of this year was 2.2%.
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| Chile's steel production index falls 3.5% in August | ||
| The steel production index measured by Chile's national institute of statistics, Ine, decreased 3.5% from July to August. On a year-on-year basis, it plunged 11.8%. In the January-August period, production was 14.3% lower than in the same period of last year. The institute measures steel production with an index that includes the operation of blast furnaces, steel converters and rolling mills, as well as the production of pig iron, ingots, ferroalloys and rolled products such as angles, sections, bars and rebar. Ine does not publicly quantify actual volumes of production, only percentage increases or decreases. Ine's steel industry production index is part of the manufacturing index, which had a slight 0.4% month-on-month elevation in August. The manufacturing index is one of three components of an overall industrial production index, which increased only 0.7% month on month in August. Chile has two steel producers: Gerdau, a 470,000 metric tons/year longs maker, and CAP Acero, which recently discontinued production off its 720,000 mt/year hot-rolled coil line. The steelmaker is capable of producing 1 million mt/year of bar and rebar.
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| Hadeed shipped 250,000 mt of HIC-resistant pipes since 2008 | ||
| Saudi Iron and Steel Company sold 100,000 metric tons of X65-grade steel pipe resistant to hydrogen-induced cracks (HIC) in the three years between 2010 and 2012, raising output since the wholly-owned unit of Saudi Basic Industries Corp., known as Hadeed, penetrated the segment in 2008 to 250,000 mt. While most of the output was delivered to the kingdom’s oil and gas state-run monopoly Aramco, some orders were delivered to Oman and others were shipped to India, Hadeed’s director of product scheduling and quality assurance, Kwang Seop Ro, said on the sidelines of a conference in Dubai this week. Hadeed produced a company-record 2.3 million mt of flat products in 2012 on top of an all-time high of 3.3 million mt of longs. However, the overall 5.6 million mt in shipments – 3% more than in 2011 – saw revenue decline 4% to SAR 14.85 billion ($3.9 billion) due to pricing pressures. Parent company Sabic said in July first-half revenue at Hadeed slowed 1% to SAR 7.83 billion, without providing shipments figures. Jubail-based Hadeed’s domestic welded pipemaking rivals include Saudi Steel Pipe and its large-diameter subsidiary Global Pipe Co., as well as Arabian Pipe Co. and Sumitomo’s National Pipe Co. ArcelorMittal, seeking to tap the opportunities presented by the oil and gas industry in the region, is expected to launch by year-end its only manufacturing facility in the Middle East, the 600,000 mt/year seamless pipe plant in Jubail, set up in conjunction with local partner Al-Tanmiah Company for Industrial & Commercial Investment.
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| Saudi's Anabeeb eyes construction with new pipe mill | ||
| Arabian Pipes Co. plans to invest in a new spiral submerged arc welded pipe (SSAW) mill of between 80,000 and 120,000 metric tons/year capacity, as the Saudi company known as Anabeeb seeks to tap a spate of government investments in housing and infrastructure. Almost 80% of output at the Jubail-based company is currently exported, despite the kingdom being one of the largest steel pipe markets in the world thanks to oil and gas state monopoly Aramaco that has more than 19,000 km of installed pipelines. However, the production of Anabeeb’s planned mill for mostly water pipe will be targeted to the Saudi market, VP of operations and plant manager Michael Wise said in an interview on Wednesday in Dubai. He didn’t provide an indication on the value of the investments or where the technology for the mill, scheduled to go online late next year, will be procured. Anabeeb sources most hot rolled coil for its 160,000 mt/y of 6-20 inch diameter electric resistance welded (ERW) pipe mill in Riyadh from Sabic’s steel subsidiary, Hadeed. Plate – unavailable in Saudi Arabia – for its 300,000 mt/y Jubail-based plant of 16-48 inch dia longitudinal submerged arc welded (LSAW) pipe is purchased from various suppliers, including in Europe and Asia, Wise said.
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| Aramco continues to shun spiral pipe despite improvements | ||
| Spiral-welded pipe will remain the least preferred type of steel pipe by Aramco, despite technological developments that have improved its characteristics, as Saudi Arabia’s oil and gas government monopoly gears up for new investments. “Despite receiving treatment for hydrogen-induced cracks, helical submerged arc welded (HSAW) pipe remains vulnerable in sour-grade applications,” Saad M. al-Muaili, Aramco’s head of consulting services, told participants at the Middle East Steel Conference for Oil & Gas Industry in Dubai on Tuesday. “We’ve had some major failures with this type of pipe in the past.” Aramco has a network of steel pipe in the kingdom exceeding 19,000 km, 47% of which is longitudinal submerged arc welded (LSAW), 20% electric resistance welded (ERW), 17% seamless, and only 3% HSAW, al-Muaili said. Manish Pathak, senior VP for Middle East and North Africa at Indian pipe maker Welspun Corp., told Platts that over the last ten years, technical developments have added 20 years to the average lifespan of pipe. “Today, spiral pipe is able to compete directly with LSAW pipe in many applications technically as well as commercially. Central-line segregation, controlled chemistry, internal and external corrosion-resistant coating, etc. Breakthrough developments in these matters have increased the lifespan of grade X-65 and X-70 pipe to as much as 40 years for low-pressure liquid-carrying applications, while sour-service applications and pipe for compressed gases is slightly less,” he said on Wednesday. Global Pipe, the large-diameter pipemaker set up last year by Saudi Steel Pipe (SSP), is expected to join Aramco’s unofficial list of seven Saudi suppliers, only two of which are qualified to provide it with LSAW. The value of the company’s pipeline of 200 projects over the next three years surpasses the $60 billion mark.
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| Rio Tinto completes phase one expansion in W. Australia | ||
| Rio Tinto said Wednesday it has now completed the first phase of the major expansion at its integrated port, rail and iron ore mine operations in the Pilbara region of Western Australia with the official opening of its Cape Lambert wharf B. Rio is expanding its capacity to 290 million metric tons/year from 220 million mt/y. Shipments from wharf B began last month with the first shipment of 165,000 mt Pilbara Blend fines made on August 24 destined for Nippon Steel & Sumitomo Metal’s Kimitsu works in Tokyo. Rio said in a statement Wednesday that the expansion - which will make its Pilbara operations the largest in Australia and the second largest in the world - is on track to reach a full run-rate by the end of the first half of 2014. The phase two expansion of Rio’s port, rail and power infrastructure to 360 million mt/year is also underway, Rio added. “A number of options for mine capacity growth are under evaluation including incremental tonnes from low-cost productivity improvements, expansion of existing mines and the potential development of new mines,” Rio said in the statement.
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| Charge chrome prices roll over in Japan and Europe for Q4 | ||
| Japan's Nippon Steel & Sumikin Stainless Steel and South Africa's Xstrata Alloys have agreed to roll over the third quarter contract price for charge chrome, at 120.50 cents/pound CIF Japan, to Q4, an NSSC spokesman said Wednesday. "The price had rolled over as there was no change in the market environment from July-September," NSSC spokesman Hirokazu Ajima said. "South African power costs have not changed, and neither has demand," he added. The European benchmark charge chrome price for the fourth quarter of 2013 has been settled at 112.5 cents/lb, which is also a rollover of the Q3 price, South African producer Merafe Resources said Wednesday. Industry sources familiar with the Japanese negotiations said Xstrata Alloys initially offered the charge chrome at 128 cents/lb CIF Japan for Q4, on the back of rising spot prices in Europe, Asia and the US since September. Platts spot high-carbon ferrochrome price (60% Cr) rose to 90-95 cents/lb CIF Japan on September 20, from 87-90 cents/lb on September 6. The spot price, however, fell to 88-92 cents/lb on September 27, according to Platts' assessments. Japanese traders explained that lackluster spot demand in Asia forced Indian producers to sell below 90 cents/lb. Japanese steelmakers other than NSSC are expected to begin their own negotiations for Q4 prices with South African and other suppliers. Some mills have annual term contracts with a quantity discount from the NSSC quarterly settlements that is fixed throughout the term, while others negotiate the discount rates each quarter depending on the quantity requirement.
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