Ellie Saklatvala, Senior Editor — Nonferrous Metals, provides a bitesize overview of the key price movements that happened in Q1 and how supply and demand fundamentals are shaping up as we move through Q2.
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India 2024-25 budget waives duties on critical minerals
India 2024-25 budget waives duties on critical minerals
Mumbai, 23 July (Argus) — India will reduce or remove custom duties for 25 critical minerals and blister copper but the government is maintaining its tax on copper scrap. A full list of the 25 critical minerals was not announced but India's finance minister Nirmala Sitharaman said in her 2024-25 fiscal year budget speech today that lithium, copper, cobalt and rare earths are crucial for sectors like nuclear energy, renewable energy, space, defence, telecommunications and high-tech electronics. Out of the 25 critical minerals to be exempt from the custom duties, 23 will be fully exempt and two will have their duty cut. The Indian government is also launching a critical mineral mission aimed at strengthening the supply chain for essential minerals. This is to encourage the private and public sectors to boost their long-term competitiveness. Customs duties on precious metals like gold and silver have been reduced to 6pc, while platinum is cut to 6.4pc. India has waived the 2.5pc basic customs duty on ferro-nickel to enhance the domestic production cost efficiency of stainless steel, with it currently import dependent to meet domestic demand. The concessional customs duty on copper scrap remains at 2.5pc, while the duty on blister copper has been reduced to zero from its previous 2.5pc. This adjustment aims to support the copper industry by reducing imports. The government has continued the zero custom duty on ferrous scrap and nickel cathode in a bid to support to achieving net-zero carbon emissions. A carbon market will be set up for India's hard-to-abate steel and cement sector, Sitharaman said. The government is working towards launching a domestic compliance carbon market by the end of this year to ensure firms keep to their greenhouse emissions intensity targets, the Carbon Markets Association of India told Argus in May. By Deepika Singh Send comments and request more information at feedback@argusmedia.com Copyright © 2024. Argus Media group . All rights reserved.
India’s MRAI urges zero import duty on Al scrap
India’s MRAI urges zero import duty on Al scrap
Mumbai, 18 July (Argus) — The Material Recycling Association of India (MRAI) has urged the government to remove import duties on aluminium scrap in its budget to be presented on 23 July. "Among the key challenges faced by the Indian aluminium recycling industry is paying [a] 2.5pc import duty on aluminium scrap," MRAI said in a letter to India's finance minister Nirmala Sitharaman. "It is a key raw material for aluminium recycling and the government should make it zero until the quality material is available in sufficient quantity in the domestic market." The government has a duty to create a level playing field between primary and secondary aluminium producers, said MRAI president Sanjay Mehta. "If customs duties are applicable on import of scrap, then commensurate export duties on the basis of total cost to country on primary products should also be levied." India does not have sufficient supplies of good quality metal scrap to support its recycling industry and relies heavily on imports. The current import duty system, coupled with the lack of aluminium scrap in India, reduce Indian producers' competitiveness in global markets because most other countries have no import duty on metal scrap. This could decelerate the country's effort to achieve its sustainability goals, added MRAI senior vice-president Dhawal Shah and the managing director of CMR Green Technologies Mohan Agarwal. India imported 1.83mn t of aluminium scrap in 2023 with more than a quarter coming from the US. Europe, the Middle East and north Africa are its other key suppliers. By Deepika Singh Send comments and request more information at feedback@argusmedia.com Copyright © 2024. Argus Media group . All rights reserved.
China's Sunwoda plans $275mn battery plant in Vietnam
China's Sunwoda plans $275mn battery plant in Vietnam
Singapore, 18 July (Argus) — Major Chinese lithium-ion battery manufacturer Sunwoda plans to build a 2bn yuan ($275mn) battery plant in northern Vietnam's Bac Giang province. The site is expected to produce consumer battery cells, system-in-package and batteries, said Sunwoda. Capacity was undisclosed but the site is expected to generate around $1bn/yr of revenue, according to an official portal by Bac Giang Provincial People's committee. Northern Vietnam houses sites of multiple major technology and semiconductor firms including Apple, Foxconn and Samsung, but unannounced or short-notice power cuts have affected production bases in the region. Power outages in Northern Vietnam during May-June 2023 disrupted production and were estimated to have shaved 0.3pc off the country's GDP, according to a 2023 report by World Bank. But the province has "overcome the power supply difficulties", said the current chairman of the Bac Giang Provincial People's committee chair Le Anh Duong. The power supply lines and stations for manufacturing plants in the province have been strengthened, Duong said, adding that the province is looking at upgrading its electricity transmission system and prioritising the allocation of electricity output to key manufacturing companies. Sunwoda will be on its power supply priority list if Sunwoda goes ahead with the investment, said Duong. Rising market barrier pressure and overseas demand prompted major Chinese battery firms to expand overseas in an attempt to deal with geopolitical curbs. Disclosed overseas investment from China's lithium-ion battery sector totalled Yn565bn as of June, according to Chinese research institution EV Tank earlier this month. By Joseph Ho Send comments and request more information at feedback@argusmedia.com Copyright © 2024. Argus Media group . All rights reserved.
BHP posts higher nickel output after disruptions
BHP posts higher nickel output after disruptions
Singapore, 17 July (Argus) — Australian resources group BHP lifted its nickel production during April-June as it recovered from planned maintenance and wet weather disruptions in the previous quarter. BHP's refined nickel production for April-June rose by 22pc against the previous quarter and by 4.5pc from a year earlier to 23,000t. The increased output was a result of a low base in the previous quarter with planned maintenance at the Kwinana refinery in Western Australia (WA) and poor weather conditions in March, the firm said. Total refined nickel output for the 2023-24 fiscal ending 30 June was 81,600t, up by 2pc from the same period last year. BHP on 11 July announced that it will temporarily suspend operations at its WA nickel businesses from October, on the back of nickel oversupply and an anticipated nickel price downtrend. BHP has also decided to halt operations at its Kambalda concentrator earlier in February, placing it into a care and maintenance phase from June. Mining and processing operations at the Kwinana refinery, Kalgoorlie smelter and Mount Keith and Leinster mines will be suspended, while development of the West Musgrave project will be put on hold. BHP will implement a care and maintenance programme to ensure the safety and integrity of its mines and infrastructure. It will invest around $300mn/yr following the transition period to support a potential restart of the facility. The transition period will start from July, with operations to be halted in October and completely stopped by December. BHP intends to review the closure by February 2027. BHP expects to record negative earnings before interest, taxes, depreciation and amortisation of around $300mn for 2023-24 and sustain a further $300mn pre-tax non-cash impairment charge following the temporary suspension decision. Send comments and request more information at feedback@argusmedia.com Copyright © 2024. Argus Media group . All rights reserved.
