EU HRC exports surge in March

: Metals
19/05/20

Exports of hot-rolled coil (HRC) from EU countries rose to the highest monthly level since November 2017 in March, amid slow local demand and rising imports.

Exports amounted to 369,904t, increasing by 45pc from February and by 41pc on the year. More than 48pc of the total, or 178,767t, was shipped to Turkey — up by 87pc on the month. In comparison, EU imports of Turkish HRC rose by 24pc from February and by 6.6pc on the year to 319,289t.

EU countries exported significant volumes of HRC to Egypt, Tunisia and the US in March, while imports from Russia and India continued to edge up.

Italy marked the highest year-on-year increase in exports, which is the result of the ramp-up at the ArcelorMittal-owned Ilva mill, with HRC exports reaching 33,280t in March compared with just 4,487t in March 2018. But Germany and Spain ramped up exports as well.

The largest exporter was the Netherlands with 194,033t shipped in the first quarter compared with 141,969t in January-March 2018.

Overall, EU third-country exports amounted to 856,349t in the first quarter, rising by 12pc on the year.

Meanwhile, EU imports were higher on the month and on the year in March at 755,536t, but lower than the January high of 924,327t. Italy continues to be by far the largest destination for imports, with March volumes up by 39pc on the year at 371,831t. Imports to Spain nearly doubled to 124,027t compared with 62,073t in February.

Customs clearing data tracked by Argus indicate that EU imports of HRC came close to 900,000t in April, but have so far this month slowed down and are likely to slow further over the summer months, as a result of Turkish mills being essentially priced out since the beginning of April amid declining local values.

Yet the quota for HRC could exhaust before the beginning of July, when it resets, with 881,373t of it left as of 17 May out of an allocation of 2.05mn t for the period 1 April-30 June. With the residual amount for February-March of just over 34,000t added in, average daily imports since the beginning of April amounted to around 44,360t. Imports would need to slow to an average daily rate of under 20,000t if the quota is not to be exhausted before the end of June.

EU steel quotas balance					t
Product	Allocation by country	Quota volume*	% of quota filled	Balance of quota left	Pending customs clearing

Hot-rolled sheet and strip	All third countries †	2,051,794	57.0	881,373	68,602
Cold-rolled sheet	India	234,714	58.6	97,148	2,709
	South Korea	144,403	96.2	5,444	4,151
	Ukraine	102,326	82.5	17,912	508
	Brazil	65,399	63.7	23,747	181
	Serbia	56,480	66.6	18,854	302
	Other countries †	262,647	91.9	21,288	4,627
Galvanised coils - 4A	South Korea	69,571	100.0	0	0
	India	83,060	100.0	0	0
	Other countries †	465,088	38.6	285,514	2,205
Galvanised coils - 4B	China	204,951	100.0	0	0
	South Korea	249,533	91.4	21,454	4,163
	India	118,594	52.0	56,981	1
	Taiwan	49,249	86.6	6,603	0
	Other countries †	76,707	100.0	0	0
Rebar	Turkey	117,232	100.0	0	0
	Russia	94,084	100.0	0	0
	Ukraine	62,535	88.1	7,448	0
	Bosnia-Herzegovina	39,356	65.0	13,772	1,259
	Moldova	28,285	98.3	484	99
	Other countries †	133,003	85.2	19,704	18,141
Wire rod	Ukraine	149,009	65.7	51,076	0
	Switzerland	141,995	76.1	33,968	1,606
	Russia	122,884	100.0	0	0
	Turkey	121,331	100.0	0	0
	Belarus	97,436	99.5	505	0
	Moldova	73,032	73.8	19,119	468
	Other countries †	74,518	100.0	0	0
*For period 2.02.2019-30.06.2019 † For period 1.04.2019-30.06.2019

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24/04/30

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Oversupply and fragmentation challenge steel market

24/04/30

Oversupply and fragmentation challenge steel market

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Milei's bid to open Argentina's economy passes

24/04/30

Milei's bid to open Argentina's economy passes

Montevideo, 30 April (Argus) — Argentina's congress today approved the government's sweeping economic legislation that could open the door to more private-sector investment in energy and commodities. The bill passed on a 142-106 vote, with five abstentions, after a marathon 20-hour debate. Changes include privatizing some state-owned companies, controversial labor reforms and measures to promote LNG development. The omnibus legislation, which includes 279 articles, is an important victory for President Javier Milei's administration and will change the way many sectors, including energy, operate in the country. Lawmakers aligned with Milei's Liberty Advances party swiftly moved to the second stage of the process, which requires approval of individual articles. The omnibus bill was initially approved in February, but the administration withdrew it after congress failed to approve several key individual articles. That original version included 664 articles. Several of the more controversial articles were brought up immediately after the blanket approval and easily passed. They included an article allowing for privatization of state-run enterprises — national power company Enarsa is on the list — and another delegating to the administration the power to eliminate state agencies without having to consult with congress. Also approved was the article on labor reform. The country's oilseed industry and port workers' unions called a strike the previous day to pressure congress to modify the labor reform. That did not happen. It passed in a separate 136-113 vote. The strike started to fizzle with approval of the legislation. Approval of the package includes several articles the administration says will open the door to major investments in the energy sector. Chapter II specifically covers natural gas, and introduces new regulations for LNG. The chapter includes five articles that allow for 30-year contracts for LNG export projects and guarantees that gas supply cannot be interrupted for any reason. The energy secretariat has six months to design the implementing rules for LNG. The government wants to speed up monetization of the Vaca Muerta unconventional play, which has an estimated 308 trillion cf of natural gas reserves. It is pushing for Malaysia's Petronas to fully commit to a large-scale LNG facility that would start with a $10bn investment. Chapter IX of the legislation creates a new framework, known as the Rigi, for investments above $200mn. It offers tax, fiscal and customs benefits. Companies have two years from implementation of the legislation to take advantage of the Rigi. The chapter on this framework is one of the most complex in the bill, including 56 articles. It includes specific references to energy projects, from power generation to unconventional oil and gas development. The administration claims the legislation will help tame inflation and stabilize the economy. Inflation was 276pc annualized through February, but is declining, and Milei announced that monthly inflation would be in single digits when the March numbers are announced. The country recorded a 0.2pc quarterly fiscal surplus in the first quarter of this year, something not achieved since 2008. By Lucien Chauvin Send comments and request more information at feedback@argusmedia.com Copyright © 2024. Argus Media group . All rights reserved.

Higher C919 adoption to boost China's Ti demand

24/04/30

Higher C919 adoption to boost China's Ti demand

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Taiwan's scrap imports fall in March as demand slows

24/04/30

Taiwan's scrap imports fall in March as demand slows

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