Atlantic coking coal: Offers strengthen
Cautious optimism towards European steel demand recovering further in the fourth quarter has encouraged some traders to start pushing up their offers for US coking coal this week.
But at least one mill was heard to have still secured September loading high-volatile B coal below $90/t fob Hampton Roads this week, pointing to the continued presence of a supplier or miner still holding considerable stocks.
The Argus daily fob Hampton Roads assessment for low-volatile coking coal held steady at $106/t today, while the high-volatile A price rose by $1/t to $109/t fob Hampton Roads, buoyed by signs of further supply tightness to come. The high-volatile B price edged up by $2.50/t to $97/t, reflecting the continued gap in price ideas between buyers that have secured September loadings at $88-92/t this week and fourth-quarter offers from traders reaching towards $100/t.
While steel prices in Europe are rising, the pressure of raw materials costs remains on mills as iron ore prices rise. "The mills are trying to ramp up coil prices but their margins are still not improving enough. Everything has been eaten up by iron ore," said one mill. The Argus ICX 62pc index rose by $2.60/dry metric tonne (dmt) today to $128.70/dmt cfr Qingdao, up from $99.95/dmt at the start of June, while the 65pc index was up today by $2.05/dmt to $140.90/dmt.
As a result of capacity cuts since the second quarter this year, overall US coking coal supply availability is expected to face limitations going into the fourth quarter, particularly if mills are seeking to increase steel output. At least one major US high-volatile B producer has not been participating in the spot market since the start of this quarter. Another miner voiced scepticism over there being many discounts still on offer, with the 2021 domestic settlements for high-volatile B at around $121-125/t fob US east coast. "I cannot fathom why anyone would be discounting right now," the miner said.
The return of steel demand has no doubt encouraged the restart of blast furnaces in Europe and north Africa. But this has unexpectedly for some led to a met coke shortage emerging this week for certain mills. Strong demand from Chinese buyers willing to pay higher prices has also meant that producers diverted cargoes from traditional destinations earlier this year to China. "Coke is difficult to get in the market at the moment because Colombian producers have sold out and Polish producers have sold a lot of cargoes to China," said a trader. But one European mill plans to offer some met coke to a trading company to be sold to Asia.
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Japan's Tokyo Steel cuts sales prices on weak demand
Japan's Tokyo Steel cuts sales prices on weak demand
Shanghai, 18 September (Argus) — Japan's steel manufacturing firm Tokyo Steel said it will cut domestic steel product prices for October, marking the first full-scale price cut in over four years. The decision was driven by sluggish domestic demand and increased competition from cheaper imported steel products. Tokyo Steel will reduce prices across all product lines starting October, with steel coils and plates dropping by ¥15,000/t, shaped beams by ¥12,000/t, and tubes and deformed bars by ¥10,000/t. The company had maintained stable domestic steel prices for an extended period on the back of the steadier domestic demand and market conditions compared to the more volatile overseas market. The last price cut for deformed bars was in July 2023. Steel sales in Japan were weak during the third quarter, impacted by rising procurement costs for materials, a shortage of construction capacity, and an influx of cheaper steel products from China in the seaborne market, market participants said. A decline in profitability pushed Japanese mills to cut production costs. From 11 July to 14 September, domestic scrap prices at Tokyo Steel's Utsunomiya plant dropped by ¥12,500/t, or 23.8pc. Market sentiment in Japan remains bearish due to economic uncertainty and the strengthening of the Japanese yen. The upcoming adjustments in US monetary policy could add further volatility to exchange rates. "We may see more corrections in the Japanese domestic market," a trade source said. Send comments and request more information at feedback@argusmedia.com Copyright © 2024. Argus Media group . All rights reserved.
July EU HRC imports show 175,000t pullback
July EU HRC imports show 175,000t pullback
London, 17 September (Argus) — EU hot-rolled coil (HRC) imports surpassed 1.5mn t in July — a record high — as importers for the first time faced a cap to the ‘other countries' safeguard quota, which led some to purchase back-up material from other sources. More importantly, official figures show that around 175,000t were pulled back from customs clearing, likely all in Italy, after the initial quota numbers were made available in early July from Egypt, Vietnam, Japan and Taiwan. This leftover amount will likely all be custom-cleared in October, in addition to material that has arrived since July, as market participants expect importers to clear all of their HRC to avoid the risk of retroactive duties, potentially applicable from December. Imports from Taiwan, India, Turkey and Japan in July all surpassed the 200,000t mark each, with total imports from those four origins close to 900,000t, a sharp year-on-year increase. Vietnam saw volumes drop ( see table ), while South Korean imports fell by 75pc on the year to 40,379t and Serbian imports were down by 10pc to 37,437t. Hot-dipped galvanised (HDG) imports were at a record high, topping 750,000t in July, with nearly 30pc of the total from Vietnam. There has been concern in the market that the EU might start an investigation on Vietnamese HDG, as volumes have been on the increase, while suppliers are regularly the lowest-priced in the market. Plate imports were also at a record high, as EU producers are preparing to file for an investigation on some origins. Meanwhile, the increase in imports and the drop in EU demand has led producers to seek export outlets, with EU HRC exports rising on the year and on the month in July to nearly 230,000t, with the bulk going to the UK, US and Turkey. Downstream product exports also increased. By Lora Stoyanova and Colin Richardson July EU HRC imports t July y-o-y ±% Taiwan 227,892.8 8.2 India 225,558.6 134.8 Turkey 223,185.9 255.2 Japan 210,842.9 6.5 Egypt 158,625.7 31.9 Vietnam 144,202.0 -59.5 Ukraine 101,721.2 118.5 Australia 51,784.0 104.4 Saudi Arabia 40,594.8 -36.4 Total 1,565,744.2 9.1 — GTT Send comments and request more information at feedback@argusmedia.com Copyright © 2024. Argus Media group . All rights reserved.
US to impose 25pc tariffs on Chinese critical minerals
US to impose 25pc tariffs on Chinese critical minerals
Houston, 13 September (Argus) — The US plans to impose 25pc tariffs on Chinese minerals including indium, tantalum, chromium, cobalt and tungsten, citing China's efforts to dominate global supply chains, according to the office of the US Trade Representative (USTR). The USTR determined not to exclude any critical minerals from the proposed Section 301 tariffs. The USTR said the concentration of mining and refining capacity of these minerals in China, as well as China's effort to dominate the global supply chains for these minerals, endangers US national security and clean energy goals. The Section 301 tariffs on indium, tantalum, chromium, cobalt, and tungsten will go into effect on 27 September. Tariffs on natural graphite and permanent magnets will go into effect on 1 January 2026. China is the leading producer and exporter of indium, producing an estimated 650t in 2023, about 66pc of the global total, according to the US Geological Survey (USGS). The US imported 219 metric tonnes (t) of unwrought indium in 2023, including 10t from China. So far in 2024 the country has imported 148t, of which 45t originated in China, according to data from the US Commerce Department. Indium is primarily used globally for its electric conductivity in a variety of screens including liquid crystal displays (LCDs) as well as fiber-optic cables and other technical components. US consumption is more focused around solders and specialty alloys. The US imports more tantalum powders, alloys, and metals from China than any other country. The US imported 321t of unwrought tantalum in 2023, including 132t from China and has imported 269t between January and July 2024, including 178t from China. Tantalum is primarily used in high-temperature alloys and capacitors. Although China accounted for only 3.3pc — 79t — of global 2023 mine production, the USGS estimated the country had a world-leading 240,000t of tantalum reserves. Chromium is primarily used in stainless and heat-resistant steels. China is the world's largest producer of ferrochromium and stainless steel. The US imported 103,034t of chromium ores and concentrates in 2023, including just 10t from China. Still, the US did import 9,302t of unwrought chrome metal from China so far in 2024, which accounted for 74pc of total volumes, and US reliance on China for the metal has increased since sanctions forced Russian supplies off the table. Although China does not mine a significant amount of cobalt, it is the world's leading cobalt refiner and consumer. The US imported 18t of cobalt ores and concentrates in 2023, including 11t from China, and imported 11t between January and July 2024, including 6t from China. The US imported 1.6mn contained kilograms (ckg) of tungsten carbides in 2023, including 906,000ckg from China and imported 1mn ckg between January and July 2024, including 491,000ckg from China. Tungsten is primarily used in carbide parts for construction, metalworking, mining, and drilling applications. Tungsten is also used in specialty steel fabrication as well as in electrodes, filaments, and wires for various electrical and electronic products. By Cole Sullivan Critical Mineral Tariffs metric tonnes, t HTS Code Resource Name Imports from China, 2023 Imports from China, 2024 through July 2605.00.00 Cobalt ores and concentrates 11 6 2610.00.00 Chromium ores and concentrates 10 52 2611.00.60 Tungsten concentrates 139 46 2825.90.30 Tungsten oxides 212 19 2841.80.00 Tungstates (wolframates) 0 0 2849.90.30 Tungsten Carbide* 906,375 491,371 8101.10.00 Tungsten, powders 0 0 8103.20.00 Tantalum, unwrought 132 178 8112.92.30 Indium, unwrought; powders 10 45 Source: US Commerce Department *unit of measure is kilograms contained Send comments and request more information at feedback@argusmedia.com Copyright © 2024. Argus Media group . All rights reserved.
UK High Court rules Cumbria coal mine permit unlawful
UK High Court rules Cumbria coal mine permit unlawful
London, 13 September (Argus) — The UK's High Court has quashed planning permission granted in 2022 for a coal mine in Cumbria, northwest England, ruling the approval was unlawful. The court judgment found the greenhouse gas (GHG) emissions that would result if the coal was burned — known as scope 3 emissions — were not properly considered during the planning process. The proposed mine's developer, West Cumbria Mining, said it would produce a "net zero coal product", using methane capture and abatement, renewable power, "tree planting… and offset of minor residual emissions". But the judgment found the secretary of state at the time, Michael Gove, acted unlawfully in accepting that claim. The UK's Climate Change Act does not allow reliance on international offsets to meet the country's legally-binding carbon budgets. The then-Conservative UK government granted permission for the mine — set to produce metallurgical coal, used in steel production — in December 2022 to West Cumbria Mining. Environmental groups Friends of the Earth and South Lakes Action on Climate Change sought a judicial review, a challenge to the way in which a decision has been made by a public body, focusing on the procedures followed rather than the conclusion reached. The UK's Labour government, elected in July, said it would not defend the planning decision in court. The government will now have to reconsider the planning application, taking into account the "full climate impact", Friends of the Earth said. "West Cumbria Mining will consider the implications of the High Court judgement and has no comment to make at this time", the company told Argus . Today's ruling referenced a landmark June judgment from the UK's Supreme Court, which found that Surrey County Council's decision to permit an oil development was "unlawful because the end use atmospheric emissions from burning the extracted oil were not assessed as part of the environmental impact assessment". The outcome has prompted the UK government to develop new environmental guidance for oil and gas firms . By Georgia Gratton Send comments and request more information at feedback@argusmedia.com Copyright © 2024. Argus Media group . All rights reserved.
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