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Large N.EU mill may further hike HRC offer price

  • Spanish Market: Metals
  • 21/01/25

A large north European steelmaker is contemplating increasing its recently tabled hot-rolled coil offer of €600/t to €620/t.

The mill cited strong sales via its online platform, a reduction in import penetration and some increase in apparent demand as the main reasons for the potential move.

There has been no strengthening in real demand, but supply tightness from 1 April — led by the ongoing safeguard review and the anti-dumping case on Egypt, Japan, India and Vietnam — will support prices, one executive at the company said.

"Even though the distribution market is not there yet, we're gaining traction [with increases] and they need to get on board. From a real demand perspective, there is no step up, but the price strength should come from the supply equation, and we do expect looking at imports there will be more tightness there", the executive added.

In their discussions with the European Commission, mills have asked for an overall quota reset as demand has fallen 20pc since the safeguard started, and duty-free volumes have been liberalised by around 15pc. They have also requested an end to pro-rata duties on the first day of a quota resetting, and for a higher duty above 25pc. Producers have also requested the 15pc other countries cap, currently applied to hot-rolled coil and wire rod, be rolled out on downstream coil products.

The market has moved up by €18.75/t since returning from the Christmas holiday, according to Argus' benchmark northwest EU HRC index, which has increased from €558.25/t to €577/t since 2 January.

Some traders have been gearing up for an increase in prices on the back of curtailed import supply, but service centres are still grappling with low end-demand and competition for sheet sales.

Egypt, Japan, India and Vietnam have represented 40-58pc of the EU import market at the reopening of quarterly quotas recently, so any dumping duties could have a meaningful impact on their volumes.

The safeguard review could also see overall duty-free imports drop by around 20pc, according to some market participants. Some suggest HRC imports could fall from 8mn t and above to around 5mn t, on the back of the review and the dumping investigation.


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11/02/25

CME north EU HRC curve softens on US duty

CME north EU HRC curve softens on US duty

London, 11 February (Argus) — North European hot-rolled coil (HRC) futures prices softened today, as the market digested the imposition of 25pc US tariffs on all imports. During the London morning, March traded at €622/t in the broker market on CME Group's north European HRC contract, down from €633/t last Friday. April traded at €627/t, down from the last trade also at €633/t, before slipping to €625/t at 13:43 GMT. February traded at €602/t, a premium of €8.62/t to the month-to-date average of Argus' underlying north EU HRC index, at €593.38/t, with 13 trading days still remaining. On the CME screen, March traded down by €13/t to €620/t, while July nudged down by €2/t to €645/t. The US accounts for around 15pc of EU HRC exports and it takes another 1.3mn t across cold-rolled coil, hot-dip galvanised and tinplate, based on January-November 2024 data. It took over 683,000t of tinplate in the first 11 months of last year, from Germany and the Netherlands. The new US tariff, applied without exemption, could redirect tonnes to the EU, although the safeguard review will address this to some extent from 1 April. The tariff strengthens the case for an EU melt-and-pour clause against Chinese steel, and a meaningful revision to quota volumes, sources said. By Colin Richardson Send comments and request more information at feedback@argusmedia.com Copyright © 2025. Argus Media group . All rights reserved.

Rain shuts Australian copper, fertilizer rail line


11/02/25
11/02/25

Rain shuts Australian copper, fertilizer rail line

Sydney, 11 February (Argus) — Torrential rains have shut Australia's Mount Isa rail line, which links phosphate and copper mines to the Port of Townsville in Queensland, with no reopening timeline in place. "The North Coast and Mount Isa rail lines have suffered severe damage with approximately 177 defects found so far," rail operator Queensland Rail (QR) said on 10 February. But the company has not yet examined parts of the line because of safety concerns, QR told Argus , preventing it from coming up with a reopening plan. Mining firm Glencore's Mount Isa copper and Australian manufacturer Incitec Pivot's Phosphate Hill fertilizer mines use the line to move commodities from production sites to the Port of Townsville, for export or distribution to other parts of Australia. Australian mining firm Centrex also uses the line to ship phosphate rock from its Ardmore phosphate project. Wet weather forced the Port of Abbot Point, located just south of Townsville, to close from 31 January to 5 February . The Port of Townsville remained open throughout that period, despite large parts of the city flooding. Incitec Pivot's Phosphate Hill plant is also currently facing non-weather-related challenges. The company lowered the mine's forecast production by 7pc to 740,000-800,000t for the 2025 financial year to 30 June, because of gas supply challenges. Argus ' MAP/DAP fob Townsville price was last assessed at $620-640/t on 6 February. By Avinash Govind and Tom Woodlock Send comments and request more information at feedback@argusmedia.com Copyright © 2025. Argus Media group . All rights reserved.

Trump imposes new tariffs on steel, aluminum


11/02/25
11/02/25

Trump imposes new tariffs on steel, aluminum

Washington, 10 February (Argus) — US president Donald Trump today imposed a 25pc tariff on all US imports of steel and aluminum effective 12 March, although he said he would consider making an exemption for imports from Australia. In remarks to reporters at the White House Trump complained that many of the steel and aluminum tariffs he imposed since 2018 have been moderated or reduced for some countries. Currently Australia and Canada can export any steel and aluminum they want to into the US without tariffs, while Mexico can export steel melted and poured in the US-Mexico-Canada (USMCA) agreement region into the US without tariffs, while any material with an origin outside of USMCA is subject to 25pc tariffs. "Our nation requires steel and aluminum to be made in America, not in foreign lands," Trump said. "It's 25pc without exceptions, and that's all countries, no matter where it comes from, all countries." But Trump, prompted by reporters, confirmed that he may make an exemption for Australian-sourced steel, after Canberra threatened to take reciprocal measures. "We have a surplus with Australia, one of the few," Trump said, referring to an overall trade surplus the US runs with Australia. "And the reason is they buy a lot of airplanes." Trump said he spoke with Australian prime minister Anthony Albanese earlier today. "I told him that [steel tariff exemptions] is something that we will give great consideration." A similar exemption for the UK is unlikely since the US already is running a trade deficit with that country, Trump said. Trump contended that his initial volley of tariffs in 2018 led to the creation of hundreds of thousands of jobs in the US and boosted economic growth. A 2019 study from the Federal Reserve Board that was updated in 2024 estimates that taking into account retaliatory tariffs, there was a net decrease in US jobs and economic growth from the tariffs. US oil and gas midstream companies were among the industries hit by the 2018 tariffs, which led to higher costs for pipeline steel. Most steel imports from non-tariffed US steel imports are heavily reliant on the countries that are currently not subject to US tariffs, with their volumes making up 80pc of the 26.2mn metric tonnes (t) of steel products imported in 2024, according to US Department of Commerce data. Steel tariff rate quota (TRQ) systems are in place for Argentina, Brazil, the EU, Japan, South Korea and the UK for steel products, with specifics dependent on the country. The CME Midwest hot-rolled coil (HRC) futures market jumped today, after Trump said on Sunday he would impose new tariffs, by $51/short ton (st) for March to $856/st, while April increased by $48/st to $858/st. Steel costs would rise by $6.38bn based on the $25.5bn value of 2024 steel imports from those nontariffed countries, if volumes remained the same. Those higher costs would lead to more US steel mill price increases, with one buyer expecting another round of price increases coming soon from US steelmakers. Steelmaker Nucor has increased its published hot-rolled coil (HRC) spot price by $40/short ton (st) in the last three weeks to $790/st. Other steelmakers like ArcelorMittal USA, Cleveland-Cliffs, and US Steel are at $800/st offers for their spot HRC. Canada key aluminum supplier In the aluminum market, the US imported over 6mn t of products in 2024, according to customs data. Canadian aluminum exporters currently have no restrictions on their volumes into the US. They shipped the highest volumes into the US and are responsible for an even larger share of primary aluminum imports. Current US primary aluminum smelting capacity, excluding idled operations, is around 795,000t/yr, which equaled less than one-third of Canadian imports and one-fifth of total imports. There are multiple idled primary aluminum facilities and a greenfield plant currently under construction, but observers and company representatives challenged the feasibility of idled plant restarts in the past. TRQ systems exist for US aluminum imports from Argentina, the EU, and the UK. By Haik Gugarats Send comments and request more information at feedback@argusmedia.com Copyright © 2025. Argus Media group . All rights reserved.

Trump seeks to end output of zinc-based penny


10/02/25
10/02/25

Trump seeks to end output of zinc-based penny

Houston, 10 February (Argus) — US president Donald Trump ordered the US Treasury Department to stop making the zinc-heavy penny, lamenting the coin's production costs, but any such effort may require more than just an executive directive. Trump on Sunday targeted the "wasteful" penny in a social media post, saying the US "for far too long" has minted the coin, "which literally cost us more than 2¢." The US Mint in its latest fiscal year lost $85mn producing pennies, with unit costs increasing by 20pc to 3.69¢ from 2023. Metal market participants do not expect a halt in penny production to materially reduce demand for zinc, which accounts for 97.5pc of the 1¢ piece's composition. Copper comprises the balance. "It doesn't take a whole lot of metal to make pennies," one source told Argus . The Mint shipped 3.2bn pennies last year, consuming 7,732 metric tonnes (t) in zinc from October-September. In contrast, the US imported 584,144t of unwrought zinc during the same timeframe. Tennessee-based Artazn, which provides the zinc blanks used in the Mint's penny production, did not respond to a request for comment. Conversely, the Mint lost nearly $18mn making nickels, which would become the lowest-denominated coin if Trump has his way. Unit costs for the 5¢ piece were higher than the penny's, increasing by 19pc to 13.78¢. Still, it remains unclear whether the president — through the Treasury — has the authority to unilaterally end circulation of the penny. The US Constitution gives Congress the exclusive power to "coin money" and determine values, but Treasury secretary Scott Bessent may be able to halt new minting until legislative action is taken. The Treasury and the Mint did not respond to requests for comment. Trump's efforts echo past attempts by his predecessors and other politicians to do away with the penny, but to no avail. Former president Barack Obama questioned the coin's function in 2013, and former Sen. John McCain and current Rep. Claudia Tenney (R-NY) filed bills in 2017 to suspend output for 10 years. By Alex Nicoll Send comments and request more information at feedback@argusmedia.com Copyright © 2025. Argus Media group . All rights reserved.

Tantalite prices surge on DRC conflict


10/02/25
10/02/25

Tantalite prices surge on DRC conflict

London, 10 February (Argus) — International tantalite prices rose sharply over the past two weeks following renewed violence in the Democratic Republic of Congo (DRC) and the end of the lunar new year public holiday in China. Argus last assessed prices for minimum 25pc tantalite at $80-88/lb cif main ports on 6 February, up by around 8pc and in a larger range compared with $75-81/lb on 28 January. And prices are expected to continue to rise in the near term. The Argus index surged as Chinese consumers returned to the market after the lunar new year holiday with limited stocks, urgently looking to secure material from central Africa amid escalating conflict in eastern DRC. The M23 militant group took control of Goma in North Kivu province at the end of January, and has advanced towards Bukavu in South Kivu in recent days, despite announcing a ceasefire last week. An emergency summit of African leaders on 8 February urged all parties involved in the conflict to hold peace talks within five days and to open humanitarian corridors. M23 have captured or surrounded several mine sites for the 3T conflict minerals — tantalum, tungsten and tin — prompting local artisanal mining companies to flee and due diligence organisation ITSCI to withdraw from multiple territories in the region. Most recently, M23 took control of Nyabibwe town in South Kivu, close to the Nyabibwe tin mine. The extraction, transport, trade, handling and export of minerals produced at mines occupied by non-state armed groups goes against OECD guidelines for responsible mineral sourcing, which means most smelters and downstream original equipment manufacturers (OEMs) will not accept material mined in areas under M23 control. The rapid advance of M23 has prompted a push among mining firms to export material from DRC to avoid possible looting, market participants said. And banks in South Kivu are out of cash, further encouraging artisanal mining firms in the area to sell material quickly. Challenging year ahead M23's expansion in DRC has come at a time when global tantalite supply is already squeezed. The militant group's takeover of the mining town of Rubaya in May last year, a recognition dispute between ITSCI and the responsible minerals initiative, the implementation of the US' section 301 tariffs on Chinese tantalum products, and generally sluggish demand from the downstream electronics industry meant that many smelters worked through their stocks in 2024 and started this year with limited inventories. "Compared to last year, there's not much material sitting in the supply chain. 2024 was the year of decreasing inventory and now we are starting to pick up more units," a tantalite consumer said. OEMs and smelters have over the past year faced pressure from major technology companies such as Apple to cut Rwandan and DRC tantalite from the supply chain, because of the increased risk of mineral fraud. Some tantalite consumers have aimed to diversify their supply chains with material produced in other African countries including, Ethiopia, Mozambique and Sierra Leone. But political unrest has also disrupted supply from Mozambique in recent months, and much less material is available from other origins compared with mines in the Great Lakes region. "This is a challenging year for tantalum. We are facing very restricted supply chains," a consumer said. By Sian Morris Argus Tantalite Prices Feb 2025 $/lb Send comments and request more information at feedback@argusmedia.com Copyright © 2025. Argus Media group . All rights reserved.

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