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Metinvest shores up coal supply amid Russia disruptions

  • Spanish Market: Coking coal, Metals
  • 11/07/19

Ukrainian steelmaker Metinvest has turned to the seaborne coking coal market in the past 2-3 weeks to replace Russian supply that has been cut off since Moscow imposed a new permitting process on coal exports to Ukraine on 1 June.

Metinvest has not received any Russian coking coal since 1 June, the company said. Prior to the disruption, Russian coking coal and pulverised coal injection accounted for 30pc of the steelmaker's blend.

Steel market participants this week have been speculating about whether Metinvest's current pull-back from the billet and hot rolled coil (HRC) market might be connected to the coal supply disruption. But the steelmaker confirmed today that it had sufficient coking coal stocks to provide a short-term buffer and has taken steps to mitigate any operational impact by hitting the seaborne market, booking significant volumes in the past 2-3 weeks in order to offset the lost Russian volumes. A market participant estimated the volume affected to be up to 1mn t, depending on the duration of the disruption.

The latest bookings are multi-origin, sourced from countries including Australia, the US and Indonesia. Market participants have also noted recent Ukrainian bookings directly from Amsterdam-Rotterdam-Antwerp stocks.

The mill's coking coal requirements are now covered until Autumn, and its US subsidiary United Coal Company (UCC) is offering 80,000t of Affinity low-volatile coking coal for August-September shipment — in line with UCC's prior target of selling 200,000t in the merchant market this year.

Affinity low-volatile coking coal typically has a dry ash content of 7.75pc, dry sulphur at 0.75pc and volatile matter at 17pc dry basis. CSR is pegged at 64.9 or 67.8 depending on method of testing.

Argus today assessed US low-volatile coking coal prices at $169.50/t fob Hampton Roads, compared with the daily fob Australia index for premium hard low-volatile coking coal at $187.80/t.

The steelmaker also indicated interest in Canadian low-volatile grades, but said its low-volatile requirements are largely covered by its own assets — namely UCC in the US and Ukraine's Pokrovske mine, in which Metinvest has a 24.99pc stake. UCC and the Pokrovske project each supply Metinvest with around 3mn t/yr of coking coal, comprising a mix of low-volatile and high-volatile type A grades.

Metinvest confirmed it has received offers from European mills looking to offload excess met coke, but is currently fully covered by its own coke production. It is particularly unlikely to need a top-up given it is reducing steel production in reaction to market dynamics.

A Mediterranean steelmaker is understood to have offered met coke at $280/t cfr Mariupol 2-3 weeks ago, but the offer failed to attract buying interest, with one market participant commenting that the price was too high relative to regional pig iron prices.

Argus today assessed Ukrainian basic pig iron at $340/t fob Black Sea, up from $333/t three weeks ago on the back of tight availability. Conversely, fob China met coke benchmarks have fallen over the same period, to $292/t from $310.40/t for 62 CSR, according to Argus assessments.

Steel production cuts

Metinvest confirmed it is reducing steel production because of scheduled maintenance at several blast furnaces at its plants and joint ventures. Sources say this is also linked to the general weakness of the flat steel market and slim margins.

The firm expects pig iron production to fall by 200,000t in the third quarter compared with the second quarter. Modernisation of its rolling mill at the Ilyich plant will take out 150,000t of HRC in the same period, but output will be ramped up in the last quarter of the year.

The mill is understood to be inactive on the spot market for some steel products at the moment, owing to the reduction in output in the third quarter. It would normally be offering from its August rolling programme, but no new offers were heard by Argus this week.

Slow demand for flat products in Europe and Turkey has also hit CIS suppliers. Although there are duties on CIS HRC imports in the EU — which have limited mills' access to the market — safeguard quotas on other flat steel, in addition to the automotive sector weakness, are impeding overall sales to the region. In the meantime, demand from Turkish buyers — for many of which Europe is the largest export destination — has dwindled this year.

But with maintenances at a number of CIS producers already started, and a fire at MMK this week taking the company off the spot market, a squeeze in CIS supply may ensue, which could balance out supply-demand dynamics in the Black Sea region.


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19/02/25

Trump asserts power over independent agencies

Trump asserts power over independent agencies

Washington, 19 February (Argus) — President Donald Trump has signed an executive order that claims to give him sweeping control over the budgets, policies and regulations of independent US agencies that oversee the energy sector, financial markets, trade and transportation. The order seeks to give the White House unprecedented control over the US Federal Energy Regulatory Commission (FERC), the US Commodity Futures Trading Commission (CFTC), the US Securities and Exchange Commission (SEC) and more than a dozen other independent agencies. Trump's order asserts that "so-called independent agencies" lack sufficient accountability and should be brought under his direct control. "For the federal government to be truly accountable to the American people, officials who wield vast executive power must be supervised and controlled by the people's elected president," according to the executive order, which was signed on Tuesday. FERC, the CFTC and the SEC did not respond to a request for comment. Trump's order would all but end years of attempts by the US Congress to shield agencies that oversee energy markets, trading, finance, maritime trade, railroads, and other businesses from excessive political influence. Congress made those agencies independent — often with a bipartisan board serving years-long terms — to ensure a degree of independence when agencies resolve business disputes, set market rules and issue new regulations. In Trump's first term, FERC's commissioners and Republican chairman rejected the administration's plan to push through market rules to bail out coal and nuclear power plants, based partly on the concerns that doing so would destabilize power markets and cost consumers billions of dollars. It remains unclear if the agency in the future could assert that degree of independence under the order. Trump's order would give the White House the ability to control independent agency budgets and require the appointment of a White House "liaison" in each agency. The order would require agency chairs to align their policies with the White House, subject all significant regulations to review by the administration, and would establish "performance standards" for agency leaders. The order provides an exception for the US Federal Reserve for monetary policy, but the agency's budget and its regulatory actions would come under White House control. Other agencies also covered by the executive order include the US Surface Transportation Board, the US Federal Trade Commission, the US Chemical Safety Board, the US Export-Import Bank, the US Federal Maritime Commission and the US National Transportation Safety Board. By Chris Knight Send comments and request more information at feedback@argusmedia.com Copyright © 2025. Argus Media group . All rights reserved.

Steelinvest, Delong establish JV for exports


19/02/25
19/02/25

Steelinvest, Delong establish JV for exports

London, 19 February (Argus) — Steel trader Steelinvest and Chinese producer Delong Steel have established a joint venture (JV) to market mill export sales. The venture, Ziming SG Global, will be located in Dubai and headed by Fred Hayrapet of Steelinvest Group. The company will focus on semi-finished and finished steel across long and flat products. Hayrapet told Argus the company will focus on markets where Chinese steel is welcomed, in response to a question on the increasing trade barriers facing the country's exports. The JV aims to scale up to 5mn t/yr of exports over time. Delong has a production capacity of 30mn t/yr across 11 mills, five of which are fully integrated, and intends to "increase the export efficiency and global marketing" of its production through the organisation. It also holds a majority stake in Indonesia's Dexin Steel Group, which has recently started exporting hot-rolled coil into some major markets, such as Europe, as well as slab. Steelinvest currently markets more than 3.5mn t/yr of steel and raw materials. By Colin Richardson Send comments and request more information at feedback@argusmedia.com Copyright © 2025. Argus Media group . All rights reserved.

EU draft plan seeks to cut energy costs


19/02/25
19/02/25

EU draft plan seeks to cut energy costs

Brussels, 19 February (Argus) — The European Commission has set out plans to tackle the cost of energy in the EU, warning in a draft document that Europe risks de-industrialisation because of a growing energy price gap compared to global competitors. High energy prices are undermining "the EU's global standing and international competitiveness", the commission said, in a draft action plan for affordable energy, seen by Argus . The plan is expected to be released next week, alongside a clean industrial deal and other strategy documents. Much of the strategy relies on non-binding recommendations rather than legislation, particularly in energy taxation. Officials cite EU reliance on imported fossil fuels as a main driver of price volatility. And they also highlight network costs and taxation as key factors. For taxation, the commission pledges — non-binding — recommendations that will advise EU states on how to "effectively" lower electricity taxation levels all the way down to "zero" for energy-intensive industries and households. Electricity should be "less taxed" than other energy sources on the bloc's road to decarbonisation, the commission said. It wants to strip non-energy cost components from energy bills. Officials also eye revival of the long-stalled effort to revise the EU's 2003 energy taxation directive. That requires unanimous approval from member states. The commission pledges, for this year, an energy union task force that pushes for a "genuine" energy union with a fully integrated EU energy market. Additional initiatives include an electrification action plan, a roadmap for digitalisation, and a heating and cooling strategy. A white paper will look at deeper electricity market integration in early next year. EU officials promise "guidance" to national governments on removing barriers to consumers switching suppliers and changing contracts, on energy efficiency, and on consumers and communities producing and selling renewable energy. More legislative action will come to decouple retail electricity bills from gas prices and ease restrictions on long-term energy contracts for heavy industries. By 2026, the commission promises guidance on combining power purchase agreements (PPAs) with contracts for difference (CfDs). And officials will push for new rules on forward markets and hedging. There are also plans for a tariff methodology for network charges that could become legally binding. Familiar proposals include fast-tracking energy infrastructure permits, boosting system flexibility via storage and demand response. Legislative overhaul of the EU's energy security framework in 2026 aims to better prepare Europe for supply disruptions, cutting price volatility and levels. Specific figures on expected savings from cutting fossil fuel imports are not given in the draft seen by Argus . But the strategy outlines the expected savings from replacing fossil fuel demand in electricity generation with "clean energy" at 50pc. Improving electrification and energy efficiency will save 30pc and enhancing energy system flexibility will save 20pc, according to the draft. The commission is also exploring long-term supply deals and investments in LNG export terminals to curb prices. By Dafydd ab Iago Send comments and request more information at feedback@argusmedia.com Copyright © 2025. Argus Media group . All rights reserved.

S Australia puts Whyalla steelworks into administration


19/02/25
19/02/25

S Australia puts Whyalla steelworks into administration

Sydney, 19 February (Argus) — The Labor state government of South Australia (SA) has pushed new laws through parliament forcing the 1.2mn t/yr Whyalla steelworks, owned by UK-based GFG Alliance, into administration. SA appointed KordaMentha as an administrator of OneSteel — which is part of the GFG group and operates the steelworks and associated 9mn t/yr iron ore mines in SA's upper Spencer Gulf region — on 19 February, citing a lack of confidence in GFG's ability to fund ongoing operations. GFG acquired OneSteel in its takeover of Australian steel producer Arrium in 2017, a process also overseen by KordaMentha. The city of Whyalla is reliant on the steelworks as its primary employer and the failure of GFG to pay creditors and service growing debts associated with the plant has led to a political crisis in SA. The appointment of an administrator occurred after changes to the Whyalla Steel Works Act 1958 were rushed through state parliament on the morning of 19 February, the government said. The changes apply GFG's debts as a charge across all of OneSteel's real property, and thus readily enforceable. SA premier Peter Malinauskas revealed this month that the state government is owed tens of millions of dollars in unpaid iron ore mining royalties, while state-owned utility SA Water is owed about A$15mn ($9.5mn). By Tom Major Send comments and request more information at feedback@argusmedia.com Copyright © 2025. Argus Media group . All rights reserved.

Australian fertilizer, copper, zinc rail line to reopen


19/02/25
19/02/25

Australian fertilizer, copper, zinc rail line to reopen

Sydney, 19 February (Argus) — The Mount Isa rail line — which connects multiple Queensland phosphate and copper mines to the Port of Townsville — will reopen today, after floods damaged the track earlier this month. The track is expected to open on 19 February, the line's operator Queensland Rail (QR) confirmed to Argus. But QR did not specify the reopening time. The company announced the line closure on 10 February, after nearly two weeks of heavy rains. QR identified 1.6km of track damage along the Mount Isa rail by 14 February. The rail operator's staff were unable to access parts of the track at the time, as water covered 2km of the line. Fertilizer suppliers Incitec Pivot and Centrix use the lines for DAP/MAP and phosphate rock shipments respectively from their Phosphate Hill and Ardmore projects. Metals producer Glencore also moves copper and zinc from its Mount Isa mining complex to Townsville via the track. Centrix is planning to ship approximately 10,000t of phosphate concentrate out of the Port of Townsville in mid-March. The company also moved 25,000t of concentrate out of the port on 18 February, supported by its phosphate stockpile in Townsville. Queensland's recent floods also disrupted loadings at many of the state's coal ports, including the Ports of Abbot Point, Hay Point, and Dalrymple Bay, in early February. Coal loadings across Australia's east coast dipped to 5.42mn deadweight tonnes (dwt) over the week to 8 February, down by 27pc from 7.42mn dwt a week earlier, because of the weather issues. Argus ' MAP/DAP fob Townsville price was last assessed at $620-640/t on 13 February. By Avinash Govind Send comments and request more information at feedback@argusmedia.com Copyright © 2025. Argus Media group . All rights reserved.

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