India 2024-25 budget waives duties on critical minerals
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.
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Mexico’s July industrial output growth slows to 0.2pc
Mexico’s July industrial output growth slows to 0.2pc
Houston, 12 September (Argus) — Mexico's industrial production growth slowed to just 0.2pc in July from the previous month, statistics agency Inegi reported Tuesday, supported by rebounds in construction and non-oil mining. The monthly gain in industrial output, following a 0.4pc increase in June and a 0.7pc gain in May, marked a fifth month of expansion in the seven months through July. Seasonally adjusted, construction led major components in July, expanding by 2.6pc over June, with mining expanding by 1.4pc over the previous month. Oil and gas extraction, however, was down by 0.2pc from the previous month, after 0.5pc growth was reported in June. The segment has now shown contraction in 10 of the last 12 months. Extraction of other minerals, however, increased by 0.4pc over the prior month, after a 4.6pc decline reported in June. Mining-related services also rebounded, up 14.8pc in July after a 9.7pc contraction in June. Manufacturing reversed course in July, registering a 0.8pc contraction from the previous month after posting a 2pc expansion in June. This is largely the result of the auto manufacturing segment posting a monthly contraction of 3.1pc in July after a 5.8pc expansion in June. The auto segment comprises 24pc of the manufacturing component in Inegi's monthly industrial activity report (Imai), and manufacturing accounts for 63pc of nationwide industrial activity. Auto output, however, should rebound in August with INEGI reporting Monday that light vehicle production in August was up almost 20pc from July. Meanwhile, the utilities component — tracking provision of electric power, water and natural gas — contracted for a second consecutive month, down 0.9pc in July after a 0.2pc contraction recorded in June. Manufacture of products derived from oil or coal expanded for a second month, up 3pc in July on a monthly basis after a 10.6pc jump in June. Looking ahead, Mexican bank Banorte said, "We believe that the bias for industry in the remainder of the year will be negative, with headwinds for construction and manufacturing." Some drivers, it said, include: "weakness in US industry; lower base metal prices due to a global economic slowdown, especially in China; the completion of local infrastructure works; and some circumstantial factors that have added volatility within different sectors." Nevertheless, Banorte's industrial outlook for 2025 and the medium-term remains positive as the major infrastructure projects for the incoming administration get underway. By James Young Send comments and request more information at feedback@argusmedia.com Copyright © 2024. Argus Media group . All rights reserved.
FeCr quarterly benchmark not fit for Asia: Jindal
FeCr quarterly benchmark not fit for Asia: Jindal
Mumbai, 12 September (Argus) — The ferrochrome industry has entered a new era after the quarterly benchmark system ended in June 2024 and the industry is seeking a new pricing mechanism to replace the benchmark system that had been criticised for many years . Argus spoke with Indian producer Jindal Stainless' managing director Abhyuday Jindal about what the future pricing mechanism should look like and the challenges Indian stainless steelmakers face from lower-priced Chinese imports and increased volatility in raw material costs. How are you pricing ferrochrome without a quarterly benchmark, and what future pricing mechanisms do you foresee? Even during the regime of quarterly benchmark prices, countries such as India and China were not influenced by this benchmark. Instead, they set ferro chrome prices based on realistic demand and supply. They negotiated prices close to the actual consumption. Even European consumers had been buying chrome at discounted levels than the benchmark levels because it was unrealistic. In the future, we expect the Asian model based on realistic demand and supply will continue to succeed. How has cheaper Chinese stainless steel imports impacted the margins of domestic steelmakers? Imports from China have posed a long-standing challenge to the industry. While other major stainless steel producing nations have imposed duties on Chinese imports, India has yet to take similar actions. As one of the largest and fastest-growing markets for stainless steel, India becomes a key target for dumped and subsidised imports. Continuous dumping from China puts immense pressure on MSMEs and disrupts the local manufacturing ecosystem. Additionally, it creates an uneven playing field for domestic manufacturers, often forcing many to shift from manufacturing to trading. What is the outlook for ferrochrome prices and how will this affect production costs and demand? Recently, raw material prices for stainless steel had been volatile owing to availability concerns of raw material ore. Nickel, one of the major input materials, has displayed unpredictability on the London Metals Exchange (LME) in the range of $15,000-21,000/t and now currently is around $16,000/t. Some of this volatility was driven by Ni ore prices in Indonesia. Similarly, chrome ore shortages are impacting ferrochrome availability and prices. In India, the majority of chrome ore resources are available from only two companies, of which only one has been consistent with supplies. This is the reason why we have had to resort to imports for meeting chrome requirements. By Deepika Singh Send comments and request more information at feedback@argusmedia.com Copyright © 2024. Argus Media group . All rights reserved.
Australia's CER undecided on SMC issuance details
Australia's CER undecided on SMC issuance details
Sydney, 12 September (Argus) — Australia's Clean Energy Regulator (CER) has not yet decided on the level of details that will be published alongside the upcoming safeguard mechanism credits (SMCs), while estimated issuance numbers remain within a "wide" range, delegates heard at a forum in Sydney. The regulator will start to issue SMCs early next year to safeguard facilities that report scope 1 greenhouse gas (GHG) emissions below their annual baselines. Each SMC will represent 1t of CO2 equivalent (CO2e) below a facility's baseline, which will have the option to either hold it for future use or sell it in the market. The CER has an estimated range of SMC issuance numbers for the July 2023-June 2024 compliance year, the first under Australia's reformed safeguard mechanism . But this range is "very wide" as several factors are at play, executive general manager Carl Binning told delegates at a safeguard mechanism forum organised by the regulator in Sydney on 11 September. SMC issuances will be "relatively modest initially" according to Binning, but volumes are expected to build up over time as companies intensify efforts to reduce emissions while baselines converge to industry averages. He declined to provide any internal estimates on SMC issuances. Australian companies need to submit their emissions and energy data under the National Greenhouse and Energy Reporting (NGER) scheme by 31 October, including covered emissions data for individual safeguard facilities. The CER is finalising the so-called energy intensity determinations for each facility, which will be used to set their baselines. Baselines will be based on a production-adjusted framework initially weighted towards site-specific emissions intensity values, transitioning to industry average emissions intensity levels by 2030. Under the reformed mechanism, facilities that emit more than 100,000t of CO2 equivalent (CO2e) in a fiscal year face declining baselines — at a rate of 4.9 pc/yr until 2030 — and need to surrender Australian Carbon Credit Units (ACCUs) or SMCs if their onsite abatement activities were not enough to keep their emissions below thresholds. Australia's Department of Climate Change, Energy, the Environment and Water (DCCEEW) late last year estimated SMC issuances would start at around 1.4mn units in the 2024 financial year ending 30 June 2024, rising to 7.4mn in 2030 and 10.3mn in 2035. Facilities that fall below the coverage threshold of 100,000t CO2e can choose to continue receiving SMCs for up to 10 years — with their baselines continuing to decline if they opt in — and the DCCEEW expects such issuances will be the main source of SMCs by 2035 (see table). Uncertain data level All safeguard facilities will need to give a breakdown of the surrendered ACCUs by the method under which they were generated for the first time from the 2024 financial year, as well as a breakdown of their emissions by CO2, methane and nitrous oxide. The CER will publish 2023-24 safeguard data by 15 April 2025. But while the regulator will also need to publish the number of SMCs issued to a facility, there is still no definition on whether it will disclose where SMCs surrendered by facilities came from, Binning told delegates. "One of the issues we're really wrestling with in the design of our new registry is how much information we tag," Binning said. "I think the marketplace is interested in more granularity… so I'd actually invite feedback on this topic," he added. The CER expects that the new registry replacing the Australian National Registry of Emissions Units (ANREU) will be operational by the end of calendar year 2024. It plans to issue SMCs into the new registry and transfer all ACCUs from the ANREU "gradually" over the following months before the start of the next safeguard compliance period. By Juan Weik Projected SMC issuances (mn) Financial year From safeguard facilities From below-threshold facilities Total 2024 1.36 0.05 1.41 2025 1.62 0.13 1.75 2026 2.27 0.06 2.33 2027 3.20 0.26 3.46 2028 3.52 0.22 3.74 2029 4.34 0.54 4.88 2030 5.67 1.77 7.44 2031 5.31 1.92 7.23 2032 5.29 3.75 9.04 2033 6.77 3.47 10.24 2034 5.82 4.72 10.54 2035 4.80 5.51 10.31 Source: DCCEEW Send comments and request more information at feedback@argusmedia.com Copyright © 2024. Argus Media group . All rights reserved.
S Korean plate sales into EU revive AD probe talks
S Korean plate sales into EU revive AD probe talks
London, 11 September (Argus) — A recent spree of South Korean hot-rolled plate (HRP) sales into Europe have revived talks around the possibility of a dumping probe. Over the first six months of 2024 South Korean plate arrivals into Europe rose by a third compared with the same period last year to 330,000t. Last week, South Korea offered S275 grades at €540-550/t cfr south EU concluding a string of deals in the process, likely at the figures indicated above. These prices have put local producers under pressure to reduce their own offers despite significant cost pressures. When comparing southern European prices to South Korean imports an arbitrage of about €90/t is available on domestic offers. At the time of writing, local prices in Italy for S275 grades have settled at €650-680/t ex-works. One mill source told Argus it has already filed a complaint to the relevant authorities over dumping activity from Asia. "It makes sense to investigate India and Indonesia, combined with Korea. These are the three most aggressive sources right now," the same market participant said. This investigation follows protectionist trends and should include South Korea, Indonesia and India, one trader added. Similar views were echoed in Italy, where two sources commented any investigation should begin promptly, given the damage imports have caused. A probe launched by the EU would likely put UK authorities under pressure to enact a similar measure. "The UK has to act in the same way as EU. Korean prices cannot continue," one mill agent said. Aggressive importation, especially from Asia, has also hampered cash-strapped Liberty Steel's re-rolling facility in Scotland. Sources close to the company told Argus the reroller remains off the market, and has furloughed part of its workforce. "Structural challenges in the UK steel industry, including consistently high energy costs and cut-price imports from countries such as South Korea with less stringent environmental standards, means Liberty Steel UK has for some time been operating some plants intermittently with agreed short-time working arrangements," Liberty said. UK Steel, which represents UK steelmakers, noted "concern" about "underpriced" Korean plate imports, though it said it has not submitted a petition as of yet. By Carlo Da Cas Send comments and request more information at feedback@argusmedia.com Copyright © 2024. Argus Media group . All rights reserved.
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