US inflation eases to 2.3pc in April

Spanish Market: Metals
13/05/25

US inflation slowed in April, pulled lower by falling gasoline prices, while core inflation continued to show signs of mounting inflation pressures, as the new US administration's tariff policies have scrambled corporate and consumer investment and spending patterns.

The consumer price index (CPI) slowed to a seasonally adjusted annual rate of 2.3pc in April, down from 2.4pc in March and off from 2.8pc in February and the lowest rate since February 2021, the Labor Department reported Tuesday. Analysts surveyed by Trading Economics had forecast a 2.4pc rate for April.

Core inflation, which strips out volatile food and energy, rose at an 2.8pc annual rate, unchanged from the prior month.

The deceleration in inflation came a month after President Donald Trump began to levy tariffs on imports from China and on steel, aluminum and automobiles, starting in February. Several tariff deadlines were pushed back, including a three-month pause enacted this week on much steeper tariffs for most countries. The tariffs have prompted companies and consumers to pull back on investments and some purchases while shaking up financial markets, and heightening concerns of a global recession.

The energy index fell by an annual 3.7pc in April, down from 3.3pc in March. Gasoline fell by 11.8pc after a 9.8pc decline. Piped natural gas rose by an annual 15.7pc following a 9.4pc gain.

Food rose by an annual 2.8pc, slowing from 3pc. Eggs slowed to an annual 49.3pc after an annual 60.4pc, as avian flu has slashed supply.

Shelter rose by an annual 4pc in March, matching the prior gain.

Services less energy services rose by 3.6pc, slowing from 3.7pc in March.

New vehicle prices edged up by an annual 0.3pc.

CPI rose by a monthly 0.2pc in April after falling by 0.1pc in March. Core inflation rose by 0.2pc for the month following a 0.1pc gain in March.

By Bob Willis

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19/06/25

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ArcelorMittal halts DRI-EAF projects in the EU

19/06/25

ArcelorMittal halts DRI-EAF projects in the EU

London, 19 June (Argus) — Luxembourg-based steelmaker ArcelorMittal said it will not proceed with previously announced direct-reduced iron (DRI) and electric arc furnace (EAF) decarbonisation projects at Bremen and Eisenhuttenstadt in Germany, citing the unfavourable policy and market environment. The company initially planned to supply DRI from Bremen to the EAF in Eisenhuttenstadt after their construction. But in November last year, the company said it was unable to take final investment decisions on building the DRI-EAF assets in the EU because of challenging energy, policy and market environments that were not moving in a favourable direction. ArcelorMittal this week announced that it will carry out repair works on blast furnace 5A at its Eisenhuttenstadt site next week until 28 June, similar to the repairs last year. The blast furnace has capacity of 2.5mn t/yr. The company has urged the EU to accelerate enforcement of the carbon border adjustment mechanism (CBAM), strengthen trade protections and implement the EU Metals Action Plan to restore the competitiveness of low-emissions steel. In May, ArcelorMittal confirmed its intention to invest €1.2bn in a new EAF at its Dunkirk site in France. Market participants suggest the company was delaying its DRI investments in Ghent, Belgium, and Dunkirk, but the steelmaker has yet to comment. The French government in 2023 approved an €850mn grant to ArcelorMittal to decarbonise its Dunkirk asset. By Elif Eyuboglu Send comments and request more information at feedback@argusmedia.com Copyright © 2025. Argus Media group . All rights reserved.

Nationalisation may prop up surplus steel: Worldsteel

19/06/25

Nationalisation may prop up surplus steel: Worldsteel

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India's new steel input quality rule to curb imports

19/06/25

India's new steel input quality rule to curb imports

Mumbai, 19 June (Argus) — India's ministry of steel has issued an order stating raw materials used in imported finished steel products should meet Indian quality standards. This is likely to restrict imports, resulting in shortages of specialty steel products used by the automotive industry and other consumers, industry participants said. The order, issued on 13 June, will now require semi-finished products such as slab, billets and ingots to comply with Indian standards, even if the finished steel product already has a Bureau of Indian Standard (BIS) certification. If an overseas supplier has a BIS permit for IS 2062 grade hot-rolled coil, it will also need a similar certification for IS 14650-grade slab. For downstream products such as hot-dip galvanised steel, the input materials would constitute hot-rolled and cold-rolled sheets and strips, which would also need BIS certification, along with semi-finished products. Earlier exporters only needed BIS compliance for the final steel product and not the input material. The original quality control order covered 151 steel products. Steel consumers concerned A provisional 12pc safeguard duty implemented from 21 April has slowed imports of certain flat steel products. The new quality control rule, referred to by some industry participants as an additional "barrier" for imports, is applicable to imports with a bill of lading on or after 16 June. It has stoked concerns among micro, small and medium enterprises (MSMEs) that consume overseas steel not made in India, market participants said. The order "has triggered fears of massive losses and plant closures among MSMEs that rely on imported semi-finished steel," according to a report by think-tank the Global Trade Research Initiative (GTRI). "Many have already paid for shipments now deemed non-compliant," the report said. The automotive industry is likely to face production hurdles. Japan has been supplying a lot of specialty steel, which is not manufactured in India, to the Indian automotive industry, sources said. An automotive end-user said they were in talks with the government and declined to comment on the new order. "Steel users across India are shocked," an international steel trader said. In certain cases such as cold-rolled non-oriented steel, a type of electrical steel used in motors, the raw materials such as cold-rolled full hard steel (CRFH) or hot-rolled coil (HRC) may have BIS licence but inputs used to make CRFH or HRC may not meet Indian standards, the trader added. There is already a shortfall of certain speciality steel grades in India. Only about 12pc of the required 400,000t of cold-rolled grain-oriented steel (CRGO) was produced domestically in April 2023-March 2024, according to GTRI. The remaining volumes were imported from overseas suppliers such as China, Japan, Russia, and South Korea. India launched a new production-linked incentive scheme for speciality steel products this year, with less criteria for investment than the previous version. The new steel input quality rule is clearly in line with the government's "Make in India" initiative, a Mumbai-based trader said. It will now be difficult to get imports purchased in recent weeks by steel consumers, another Mumbai-based trading company said, adding that market conditions are tilting in favor of domestic producers. The new order is also expected to weigh on imports of plate from South Korean producers which do not have a BIS for certain input materials, the trader said. By Amruta Khandekar Send comments and request more information at feedback@argusmedia.com Copyright © 2025. Argus Media group . All rights reserved.

Syrah restarts graphite production at Mozambique mine

19/06/25

Syrah restarts graphite production at Mozambique mine

Sydney, 19 June (Argus) — Australian minerals producer Syrah Resources has resumed graphite production at its 350,000 t/yr Balama mine in Mozambique and will restart large-volume shipments in September-December, following months of disruptions owing to protests. Syrah declared a force majeure on sales from Balama in December because of protests at the site, and this remains active, the company said today. But it has restarted production and intends to ramp up output at the mine to restock inventories for shipments in September-December, Syrah said. Its graphite exports in September-December will be shipped to customers outside China. The company is aiming to have a greater presence in ex-China markets and to increase sales from Balama this year, Syrah chairman Jim Askew told investors on 23 May. Syrah sold around 1,300t of natural graphite in January-March, using existing inventories. But the company failed to meet some sales obligations over the quarter. Non-violent protesters blocked access to Balama in September, citing farming resettlement grievances. The demonstrations worsened in October, after Mozambique's disputed general election triggered major protests across the country. Most protesters left the mine in April, after reaching a deal with Syrah, the company said last month —although some remaining demonstrators had to be removed by Mozambique authorities a month later. Syrah regained access to Balama on 3-4 May. Balama's operating infrastructure has not been impacted by the protests and is in good condition, Askew said in late May. 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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