Steel News

8/18/2019 Steel News

1/32

March 20, 2016

TODAY'S TOP STORIES

HIGHLIGHTS: China steel price volatility, EU to take

ougher duty line, Krakatau pain...

WEEKLY SCRAP WRAP: Global scrap prices continue

surge

IRON ORE PRICES: Benchmark index rises above $57 per

onne cfr

UK steel industry dismayed by lack of government

support in Budget

Australia gets tough on alloyed steel to deter

circumvention

CONTENT

Global

Asia

Middle East

Europe

CIS and Russia

North America

Latin America

Australia

Daily Prices

Indices

Weekly Prices

GLOBAL

Flat Products

Flat Products Trade Log, March 18, 2016

Long Products

Long Products Trade Log, March 18, 2016

Semi-Finished

Semi-finished Products Trade Log, March 18, 2016

ScrapWEEKLY SCRAP WRAP: Global scrap prices continue surge

DAILY SCRAP REPORT: Late deep-sea deals nudge indices downward

Raw Materials

IRON ORE PRICES: Benchmark index rises above $57 per tonne cfr

Seaborne iron ore prices up, but trading slows down ahead of weekend

Raw Materials Trade Log, March 18, 2016

Industry & Companies

HIGHLIGHTS: China steel price volatility, EU to take tougher duty line, Krakataupain...

Peabody faces bankruptcy amid saturated coal market

ASIA

Flat Products

China’s spot HRC prices end week flat after market zig-zag

Benxi Iron & Steel lifts HRC, CRC prices for April delivery

Long Products

China’s spot rebar market up on billet rally

Scrap

Scrap import prices in India stable as UK, US sellers target other countries

DAILY INDICES

Title Index

Index of spot market Iron Ore prices

delivered to China, normalized to

Qingdao and 62% Fe US $ per tonne

Daily

57.5

Daily Metal Bulletin Ferrous scrap Index

HMS 1&2 (80:20 mix) (North Europe

material) $ per tonne cfr Turkey

219.14

MB Steel First Coking Coal Index -

Premium Hard Coking Coal $ per tonne

CFR Jingtang

86.25

MB Steel First Coking Coal Index - Hard

Coking Coal $ per tonne CFR Jingtang82.63

MB Steel First Coking Coal Index -

Premium Hard Coking Coal $ per tonne

FOB DBCT

85.52

MB Steel First Coking Coal Index - Hard

Coking Coal $ per tonne FOB DBCT76.8

DAILY PRICES

Title Low High

Eastern China domestic rebar yuan

per tonne ex-warehouse2200 2230

Eastern China domestic hot rolled

coil yuan per tonne ex-warehouse2380 2420

Northern China Tangshan

Domestic Billet ex-works Yuan per

tonne

1910 1910

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South Korean import scrap prices up $22-27 on Japan, Russia deals

US container scrap prices approaching $200 per tonne cfr in Taiwan

Raw Materials

Rising seaborne coking coal prices leave participants in a bind

Stainless & Special Steels

East Asian stainless steel market flat as participants await cues


Daewoo changes name to Posco Daewoo in bid for ‘synergy’ with steelmaker

China AM: Futures edge up on strengthening of spot prices

MIDDLE EAST

Flat Products

Turkish exporters slam US methodology in HRC anti-dumping case

Turkish domestic HRC prices keep rising, CRC down by $20

Turkish coated coil prices dip on lack of demand


Weak demand, imminent holiday keep Iranian steel prices on hold

EUROPE

Long Products

Domestic rebar prices in Poland up on higher scrap costs, demand

Scrap

Germany sees steel scrap shipments fall 7.5% in 2015

UK stainless scrap prices steady after nickel rise, sterling boost

Stainless & Special Steels

EU stainless market too weak for base price rises, Damstahl says

EU stainless base prices unchanged amid lower market activity


KVV Group mothballs KVV Liepajas Metalurgs mill in Latvia

UK steel industry dismayed by lack of government support in Budget

Spain’s crude steel output up by 4.2% in 2015

RUSSIA & CIS

Flat Products

MMK will build new 450,000-tpy HDG line by 2018

Tube & Pipe

OMK to invest $175m into OCTG production in Russia


Mechel’s first deputy ceo quits 'to pursue own projects'

NORTH AMERICA

End Users

Urbanisation means less steel in US construction, AISC says


More US HSS mills join year’s third price increase

WEEKLY PRICES

Title Low High

Turkey import billet $ per tonne

cfr main port340 345

Turkey import hot rolled coil $

per tonne cfr main port310 350

Turkey import cold rolled coil $


Turkey export billet $ per tonne

fob main port340 350

Turkey export rebar $ per tonne


Turkey export wire rod (mesh

quality) $ per tonne fob main

port

400 410

Turkey export merchant bar $

per tonne fob main Turkish port380 400

Turkey export hot rolled coil $

per tonne fob main port390 400

Turkey domestic billet $ pertonne exw 350 355

Turkey domestic rebar $ per

tonne exw385 400

Turkey domestic wire rod

(mesh quality) $ per tonne exw410 420

Turkey domestic hot rolled coil

$ per tonne exw410 430

Turkey domestic cold rolled

coil $ per tonne exw500 520

Turkey domestic hot dip

galvanized $ per tonne ex-

works

670 720

Turkey domestic prepainted

galvanized steel $ per tonne ex

works

760 810

Latin America export billet $


Latin America export slab $ per

tonne fob main port270 290

Latin America export rebar $


Latin America export wire rod

(mesh quality) $ per tonne fob

main port

290 300

Latin America export heavy

plate (thicker than 10mm) $ per

tonne fob main port

400 425

Latin America export hot rolled

coil (dry) $ per tonne fob mainport

300 310

Latin America export cold

rolled coil $ per tonne fob main

port

350 380

Latin America export hot-dip

galvanized coil $ per tonne fob

main port

470 520

South America plate import $360 385

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LATIN AMERICA

Flat Products

Flat steel import prices up again in South America

Semi-Finished

Latin American slab export prices increase on reduced availability

Raw Materials

Venezuela's HBI export market quiet as energy, water crisis grips nation

Supply Chain

Vale, China COSCO sign 27-year deal for iron ore shipping


Brazil's Usiminas lays off workers at Cubatão, halts flat steel output

Usiminas signs deals with creditors to suspend debt payments

AUSTRALIA


Australia gets tough on alloyed steel to deter circumvention

GLOBAL

Flat Products Trade Log, March 18, 2016

Latest transactions: HRC, HDG

Hot rolled coilChina, export, hot rolled coil, offered at $380-400 per tonne cfr, to South America.

Turkey, domestic, hot rolled coil, traded at $410-430 per tonne ex-works, May production.

Turkey, domestic, hot rolled coil, offered at $440-450 per tonne ex-works, May production.

Turkey, export, hot rolled coil, offered at $400 per tonne fob.

Russia, export, hot rolled coil, offered at $350 per tonne cfr, to Turkey.

East China, domestic, commercial-grade HRC (4.5-12mm), traded at 2,380-2,420 yuan ($367-374) pertonne, including VAT.

North China, domestic, commercial-grade HRC (4.5-12mm), traded at 2,380-2,400 yuan ($367-371) pertonne, including VAT.

Cold rolled coilRussia, export, cold rolled coil, offered at $410 per tonne cfr, to Turkey.

Turkey, domestic, cold rolled coil, traded at $500-520 per tonne ex-works.

Turkey, domestic, cold rolled coil, offered at $500-540 per tonne ex-works.

Hot dipped galvanized coilChina, export, hot dipped galvanized coil, offered at $570 per tonne cfr, to Brazil.

China, export, hot dipped galvanized coil, offered at $550 per tonne cfr, to Colombia.

Turkey, domestic, hot dipped galvanized coil (0.50mm), traded at $670-720 per tonne ex-works.

Turkey, domestic, hot dipped galvanized coil (0.50mm), offered at $680-720 per tonne ex-works.

Pre-painted galvanized coilTurkey, domestic, pre-painted galvanized coil (colour-coated coil) (0.50mm, 9002 colour code), traded at

per tonne cfr main ports

South America import hot

rolled coil $ per tonne cfr main

ports

380 400

South America import cold

rolled coil $ per tonne cfr main

ports

455 470

South America import hot dipgalvanized coil $ per tonne cfr

main ports

550 570

USA import rebar $ per short

ton cfr Gulf 354 363

USA domestic rebar $ per short

ton fob mill460 480

USA domestic hot rolled sheet

$ per short ton fob mill420 420

USA domestic cold rolled sheet

$ per short ton fob mill590 590

China export rebar $ per tonne


China export wire rod (mesh

quality) $ per tonne fob main

port

310 315

China export heavy plate $ per

tonne fob main port335 345

China export hot rolled coil $


China export cold rolled coil $


China export galvanized coil

(1mm) $ per tonne fob main

port

460 465

Eastern China domestic rebar

yuan per tonne ex-warehouse2200 2230

Eastern China domestic wire

rod (mesh quality) yuan per

tonne ex-warehouse

2210 2400

Eastern China domestic

sections yuan per tonne ex-

warehouse

2250 2300

Eastern China domestic plate


Eastern China domestic hot

rolled coil yuan per tonne ex-

warehouse

2380 2420

Eastern China domestic cold


warehouse

3100 3200

Eastern China domestic hot-dip

galvanized coil yuan per tonne

ex-warehouse

3600 3650

Southern China domestic rebar


Southern China domestic wire

rod (mesh quality) yuan per

tonne ex-warehouse

2280 2360

Southern China domestic

sections yuan per tonne ex-

warehouse

2350 2400

Southern China domestic plate

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$760-810 per tonne ex-works.

Steel Prices Related Articles Add Comment

BACK TO CONTENTS

Long Products Trade Log, March 18, 2016

Latest transaction: rebar

Rebar Turkey, export, rebar, traded at $392-395 per tonne cfr, theoretical weight basis, to the UAE and Oman.

East China, domestic, grade-III 16-25mm rebar, traded at 2,200-2,230 yuan ($340-344) per tonne,

including VAT.

North China, domestic, grade-III 16-25mm rebar, traded at 2,190-2,200 yuan ($338-340) per tonne,including VAT.


BACK TO CONTENTS

Semi-finished Products Trade Log, March 18, 2016

Latest transaction: slab

SlabBrazil, export, slab, traded at $290 per tonne fob.

BilletRussia (Metalloinvest), export, billet, offered at $330-333 per tonne fob Black Sea.

Ukraine (ArcelorMittal Kryvyi Rih), export, billet, offered at $332 per tonne fob Black Sea.

Ukraine (Elektrostal), export, billet, offered at $320-325 per tonne fob Mariupol (Azov Sea).

Kazakhstan (Casting), export, billet, offered at $280 per tonne fob Aktau (Caspian Sea).

Kazakhstan (Casting), export, billet, offered at $325 per tonne cfr Egypt, via Black Sea.

Tangshan, domestic, billet, traded at 1,910 yuan ($295) per tonne, including VAT, 3pm Beijing.


BACK TO CONTENTS

WEEKLY SCRAP WRAP: Global scrap prices continue surgeScrap prices in the global markets continued to surge upward in most of the major markets in the working

week from Monday March 14 to Friday March 18.

Turkey importsTurkish imported scrap prices have risen by almost $10 per tonne over the past week, with the mills inthe country continuing to book deep-sea scrap at higher prices.

A steel producer in the Iskenderun region booked a European cargo, comprising 15,000 tonnes of HMS1&2 (75:25) and 10,000 tonnes of bonus grade scrap at an average price of $227 per tonne cfr, on March18.

Another steel mill in the Marmara region also booked a European cargo, comprising 15,000 tonnes ofHMS 1&2 (75:25), 10,000 tonnes of shredded, 7,000 tonnes of P&S, 4,000 tonnes of busheling, 3,600tonnes of HMS 1, and 1,600 tonnes of new auto bundles at an average price of $217.84 per tonne cfr,

yuan per tonne ex-warehouse 2470 2550

Southern China domestic hot


warehouse

2380 2420

Southern China domestic cold


warehouse

3200 3280

Southern China domestic hot-dip galvanized coil yuan per

tonne ex-warehouse

3450 3650

Northern China Tangshan

Domestic Billet ex-works Yuan

per tonne

1910 1910

Northern China Domestic

Rebar ex-warehouse Yuan per

tonne

2190 2200

Northern China Domestic Hot

Rolled Coil ex-warehouse Yuan

per tonne

2380 2400

India import heavy plate (20-

60mm) $ per tonne cfr main

port

370 380

India import hot rolled coil $per tonne cfr main port

360 370

India import hot rolled coil (CR

grade) $ per tonne cfr main port360 370

India import cold rolled coil $


India export billet $ per tonne


India export heavy plate (12-

40mm) $ per tonne fob main

port

400 405

India export hot rolled coil

(commodity) $ per tonne fob

main port

400 405

India export hot-dip galvanizedcoil $ per tonne fob main port 540 545

Indian domestic billet rupees

per tonne ex-works22100 22200

India domestic heavy plate

rupees per tonne exw26000 26500

India domestic hot rolled coil

rupees per tonne exw28500 29000

India domestic cold rolled coil

rupees per tonne ex-works33500 34000

India domestic hot-dip

galvanized coil rupees per

tonne exw

40000 41000

India domestic rebar rupees

per tonne ex works25000 25100

India domestic direct reduced

iron rupees per tonne exw12900 13000

Asia grade 304 stainless steel

cold rolled coil (2mm 2B) $ per

tonne cif East Asian port

1650 1700

Asia grade 304 stainless steel

hot rolled sheet $ per tonne cif

East Asian port

1600 1650

China domestic grade 304

Page 4 of 32



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also on Friday.

A steel producer in Izmir booked a Baltic Sea cargo, comprising 25,000 tonnes of HMS 1&2 (80:20) at$228.50 per tonne and 5,000 tonnes of bonus at $238.50 per tonne cfr, on March 18.

A second steel mill in the Marmara region booked a US cargo, comprising 10,000 tonnes of HMS 1&2(80:20) at $229 per tonne, 15,000 tonnes of shredded at $234 per tonne and 15,000 tonnes of bonus at$239 per tonne cfr, also on March 18.

A steel producer in Iskenderun booked a US cargo, comprising 14,000 tonnes of HMS 1&2 (80:20) at$229 per tonne, 20,000 tonnes of shredded at $234 per tonne and 6,000 tonnes of P&S at $239 pertonne cfr, on March 16.

However, market participants were still cautious about the strong prices as finished steel market priceswere not supportive of them.

“I do not believe in these prices. Finished steel, iron ore and billet do not support these prices,” a tradersaid.

“The market has lost control. Suppliers are already talking about $250 per tonne cfr,” a Turkish sourcesaid.

US exportsThe US bulk scrap export market was quiet until March 16, when the US ferrous scrap index closed as

the mills in Turkey started to book US cargoes.

“Continental European scrap exporters are apparently short of inventory for older, cheaper orders,” oneUS East Coast exporter source said.

In spite of not having enough scrap to cover existing orders, the Europeans are actively making bids onpotential new deals due to attractive prices, he added.

Taiwan importsImport prices for containerised HMS-grade scrap have continued to surge in Taiwan to their highestlevels in more than eight months, amid an enduring supply shortage from the USA.

Prices could soon reach the $200-per-tonne-cfr mark – last seen in the East Asian territory in early Julylast year – according to several sources.

Bookings were heard as low as $185-187 per tonne cfr in the beginning of the week for small cargoes,

before moving up to $190-193 per tonne cfr and finally $195 per tonne cfr by the end of the week, while

offer prices were close to $200 per tonne cfr on Friday.

South Korea importsImport prices for bulk scrap cargoes brought into South Korea have gone up by as much as $22-27 pertonne over the past two weeks, following the conclusion of new bookings for cargoes from Japan andRussia.

At least two local electric arc furnace (EAF) mills booked cargoes of A3-grade scrap from Russia at $199per tonne cfr this week, for volumes totalling as much as 70,000 tonnes.

The price was $27 higher in comparison than the previous deal for similar material of the same origin,closed at $172 per tonne cfr early in March.

South Korean EAF mills also purchased cargoes of Japanese H2-grade scrap this week at prices rangingbetween ¥19,500 ($174) and ¥19,900 ($178) per tonne fob Tokyo Bay. This was up by ¥2,500-2,900($22-26) from prices as low as ¥17,000 ($152) per tonne fob two weeks ago.

Adding freight rates as low as $18-20 per tonne, the new booking prices would equate to $192-198 pertonne cfr, one South Korean market participant estimated on Friday, although he acknowledged that theyen exchange rate has been fluctuating recently.

India importsPrices for the HMS grade and shredded scrap imported into India have remained largely stable, withsmall fluctuations, over the past week.

“Generally, sellers from the USA and the UK are holding back from making offers into India as they cansell at better prices to Turkey currently,” one India-based trader said.

An offer for UK-origin shredded scrap was heard at $230 per tonne cfr Nhava Sheva. That was down

stainless steel cold rolled coil

(2mm) yuan per tonne in-

warehouse

11400 11600

China domestic grade 430 2mm

stainless steel cold rolled coil

yuan per tonne in-warehouse

6600 6700

EU export grade 304 stainless

steel cold rolled sheet (2mm) €

per tonne fob North Europeanport

1794 1917

Europe domestic grade 304

stainless steel cold rolled sheet

(2mm) base price € per tonne

del

1060 1090


stainless steel cold rolled sheet

(2mm) alloy surcharge € per

tonne

734 827


stainless steel bright bar base

price € per tonne del

790 820


stainless steel bright bar alloy

surcharge € per tonne

976 1023

EU domestic 316 2mm cold

rolled stainless sheet base

price delivered € per tonne

1360 1390

EU domestic 316 2mm cold

rolled stainless sheet alloy

surcharge delivered € per

tonne

1039 1134

EU pig iron imports $ per tonne

cif Italy225 230

Venezuelan export hot

briquetted iron $ per tonne fob

main port

180 200

Latin America exports pig iron

$ per tonne fob Vitorio/Rio

Brazil

185 195


$ per tonne fob Ponta da

Madeira Brazil

195 205

USA import pig iron $ per tonne

cfr Gulf 210 220

CIS export pig iron Baltic Sea $


CIS export pig iron Black Sea $


China domestic pig iron yuan

per tonne del warehouse1570 1580

UK domestic ferrous scrap 5C

Loose Old Light £ per tonne del

consumers

45 55

Daily Metal Bulletin Ferrous

scrap Index HMS 1&2 (80:20

mix) (North Europe material) $

per tonne cfr Turkey

219.14 219.14



mix) (USA material) $ per tonne

cfr Turkey

227.06 227.06

Page 5 of 32



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from an offer of $230-235 per tonne cfr heard last week.

No new offers or deals for USA-origin shredded scrap were heard over the past week. Offers were earlierheard at $225-235 per tonne per tonne cfr Nhava Sheva, while some deals for USA-origin shreddedscrap were earlier heard at $218 per tonne cfr.

“With the new prices in Turkey, I don’t think suppliers will want to sell much to India, while the Indianbuyers are already struggling to buy at the current prices,” one UAE-based trader said.

Turkey domestic

Turkish domestic auto bundle and ship scrap prices continued to strengthen in line with rising importedscrap prices in the beginning of the week.

However, mill sources were still cautious about rising prices as the finished steel market was stil l limited.


BACK TO CONTENTS

DAILY SCRAP REPORT: Late deep-sea deals nudge indicesdownwardThe daily scrap index for Northern European-origin material remained almost flat on Friday March 18,while the index for USA-origin material went down slightly with news of two fresh deep-sea deals.

Steel First’s daily index for HMS 1&2 (80:20) from Northern Europe closed at $219.14 per tonne cfrTurkey, up by only $0.01 per tonne day-on-day.

The index for USA-origin material of the same grade closed at $227.06 per tonne cfr Turkey, down by$0.92 per tonne day-on-day.

This put the premium for US HMS 1&2 (80:20) over Northern European scrap at $7.92 per tonne onMarch 18.

A steel producer in the Iskenderun region booked a European cargo, comprising 15,000 tonnes of HMS1&2 (75:25) and 10,000 tonnes of bonus grade scrap at an average price of $227 per tonne cfr, on March18.

Another steel mill in the Marmara region also booked a European cargo, comprising 15,000 tonnes ofHMS 1&2 (75:25), 10,000 tonnes of shredded, 7,000 tonnes of P&S, 4,000 tonnes of busheling, 3,600tonnes of HMS 1, and 1,600 tonnes of new auto bundles at an average price of $217.84 per tonne cfr,also on Friday.

However, market participants were still cautious about the strong prices as finished steel market prices

Turkey import ferrous scrap

HMS 1&2 (75:25 mix) $ per

tonne cfr main port

213 218

Turkey import ferrous scrap

shredded $ per tonne cfr main

Turkish port

222 234

Turkey domestic auto bundle

scrap Turkish lira per tonne

delivered

550 590

Turkey domestic melting scrap

from shipbreaking $ per tonne

delivered

213 215

Taiwan import ferrous scrap

HMS 1&2 (80:20 mix) (USA

material) $ per tonne cfr main

port

185 195

Metal Bulletin Ferrous Scrap

Index shredded $ per tonne cfr

India

227.14 227.14

India import ferrous scrap HMS

1&2 (80:20 mix) $ per tonne cfr

Nhava Sheva

215 220

Metal Bulletin Ferrous Scrap

Index HMS 1&2 (80:20 mix) $

per tonne fob Rotterdam

204.05 204.05

Ferrous scrap Rotterdam

export HMS 1&2 (70:30 mix) $

per tonne fob Rotterdam

204 209

Ferrous scrap Rotterdam

export shredded $ per tonne

fob Rotterdam

213 225

UK export ferrous scrap HMS

1&2 (80:20 mix) fob main port204 216

UK export ferrous scrap

shredded $ per tonne fob main

port

216 226

China domestic heavy scrap

yuan per tonne del mill1170 1210

UK domestic 18/8 solids

wholesale £ per tonne del

merchants

580 610

UK domestic 18/8 turnings

wholesale £ per tonne del

merchants

495 520

UK domestic stainless steel

scrap 12-13% Cr Solids £ per

tonne del merchants

55 65

UK domestic stainless steel

scrap 16-17% Cr solids £ per

tonne del merchants

85 105

Europe import 18/8 solids € per

tonne cif main European port850 870

Europe import 18/8 turnings €

per tonne cif main European

port

730 750

Index of spot market Iron Ore

prices delivered to China,

normalized to Qingdao and

62% Fe US $ per tonne Daily

57.5 57.5

Iron Ore Concentrate Index

(66% Fe) cfr Qingdao $ per dry60.17 60.17

Page 6 of 32



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were not supportive of them, Steel First was told.

“The market has lost its control. Suppliers are already talking about $250 per tonne cfr,” a Turkish sourcesaid.

Meanwhile, two more deep-sea deals came to light after the index closed.

A steel producer in Izmir booked a Baltic Sea cargo, comprising HMS 1&2 (80:20) at $228.50 per tonne

and bonus at $238.50 per tonne cfr, while another steel mil l in Marmara booked a US cargo, comprisingHMS 1&2 (80:20) at $229 per tonne, shredded at $234 per tonne and bonus at $239 per tonne cfr.

The cargo breakdowns were not revealed at the time of publication.


BACK TO CONTENTS

IRON ORE PRICES: Benchmark index rises above $57 per tonnecfr Here are the key prices in the iron ore market on Friday March 18, as at 6.30pm Singapore time.

Key driversIron ore futures on the Dalian Commodity Exchange rose to its daily upper limit during the day, and liftedprices across the board.

Metal Bulletin's 62% Fe Iron Ore IndexToday: $57.50 per tonne cfr Qingdao

Daily change: up by $1.41 per tonneMonth-to-date average: $56.06 per tonne

Metal Bulletin's 58% Fe Premium IndexToday: $51.40 per tonne cfr QingdaoDaily change: up by $0.05 per tonneMonth-to-date average: $50.49 per tonne

Dalian Commodity Exchange's most-traded May contractToday's close: 449.50 yuan ($69) per tonneChange from previous close: up by 14 yuan ($2) per tonne

Over-the-counter trades of 62% Fe swaps/futures

Mar $55.50, $55.75 Apr $54.30, $54.50, $54.75, $54.90, $55.00, $55.15, $55.20, $55.25, $55.30, $55.35, $55.40, $55.50May $52.50, $52.75, $53.00, $53.10, $53.20, $53.25, $53.30, $53.35, $53.45, $53.50, $53.75, $53.80,$54.00, $54.50Jun $51.45, $51.50, $51.75, $52.00, $52.25Jul $50.25Q2 $53.20, $53.25, $53.50, $53.90, $54.00Q3 $49.00, $49.20, $49.25, $49.35, $49.47, $49.50, $50.00Q4 $45.35, $45.80, $46.00, $46.25, $46.50, $46.752017 $40.00, $40.25, $40.50, $40.75, $41.00, $41.50,Mar/Apr $0.25, $0.50 Apr/May $1.60, $1.65, $1.70, $1.75 Apr/Jun $3.30May/Jun $1.60, $1.65

Q2/Q3 $4.00, $4.15, $4.25Q3/Q4 $3.00


BACK TO CONTENTS

Seaborne iron ore prices up, but trading slows down ahead ofweekend A boost in steel prices propped up the seaborne iron ore market further on Friday March 18, though

metric tonne weekly index

Iron Ore Pellet Index cfr

Qingdao (65% Fe) $ per dry

metric tonne weekly index

72.36 72.36

MB Steel First Coking Coal

Index - Premium Hard Coking

Coal $ per tonne CFR Jingtang

86.25 86.25

MB Steel First Coking CoalIndex - Hard Coking Coal $ per

tonne CFR Jingtang

82.63 82.63


Index - Premium Hard Coking

Coal $ per tonne FOB DBCT

85.52 85.52


Index - Hard Coking Coal $ per

tonne FOB DBCT

76.8 76.8

China Hard Coking Coal Shanxi

spot market domestic delivered

Yuan per tonne

550 760



mix) (North Europe material) $

per tonne cfr Turkey

219.14 219.14

CIS export pig iron Baltic Sea $


CIS export pig iron Black Sea $


Venezuelan export hot

briquetted iron $ per tonne fob

main port

180 200


$ per tonne fob Vitorio/Rio

Brazil

185 195


$ per tonne fob Ponta da

Madeira Brazil

195 205

China domestic pig iron yuan

per tonne del warehouse 1570 1580

India domestic direct reduced

iron rupees per tonne exw12900 13000

EU pig iron imports $ per tonne

cif Italy225 230

Tin settlement LME daily

official $ per tonne17155 17155

Zinc settlement LME daily

official $ per tonne1847.5 1847.5

Cobalt 3 months min 99.3%

official London Metal Exchange

$ per tonne

22925 23425

Molybdenum 3 months official

London Metal Exchange $ per

tonne

11700 12200

Ferro-silicon export from

mainland China, Min 75% Si,

7.5% C, $/tonne, fob

1070 1150

Ferro-chrome China import

charge chrome 50% Cr index,

CIF Shanghai, duty unpaid, $

per Ib contained chrome

0.55 0.55

Ferro-manganese basis 78%

Mn (Scale pro rata) - Standard

Page 7 of 32



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buying activity has dipped with buyers withdrawing to the sidelines.

Key driversIn China’s Tangshan region, the price of billet rose 90 yuan ($14) per tonne during the day to 1,910 yuan($295) per tonne on Friday, while rebar prices in the country’s northern region surged 130 yuan ($20) pertonne to 2,190-2,200 yuan ($338-340) per tonne.

The price surge provided support to the seaborne iron ore market, resulting in cargoes changing hands at

higher levels, though the rise has led to some buyers hesitating.

Quote of the day“It’s the last day of the week, and enquiries were not as active as the prior day, since some mill buyersare choosing to stay out of the market temporarily to see which direction it goes,” a Beijing-based tradertold Steel First.

TradesGlobal Ore reported a transaction involving a 170,000-tonne April-arrival cargo of 62% Fe Pilbara Blendfines that was concluded at $57 per tonne cfr China.

Vale sold a 170,000-tonne April-arrival shipment of 65% Fe Carajas i ron ore fines at $61 per tonne cfrChina on Beijing Iron Ore Trading Center (Corex).

The Brazilian miner sold another 170,000-tonne April-arrival cargo of 63.5% Fe Brazilian Blend fines at

the May average of Metal Bulletin and Mysteel’s 62% Fe indices plus a premium of $3.50 per tonne.

Rio Tinto offered a 170,000-tonne cargo of 61% Fe Pilbara Blend fines, laycan April 5-14, at $58.50 pertonne cfr on Corex, which had not received any bids at the time of writing.

BHP Billiton offered a 90,000-tonne shipment of 57.3% Fe Yandi fines at $51.50 per tonne cfr China onthe same platform, which received a bid of $50.65 per tonne cfr. But the miner withdrew the offer late inthe afternoon.

Port pricesPilbara Blend fines were being traded at 420-430 yuan per wet tonne during the day at ports in Shandongprovince, compared with 410-415 yuan per wet tonne on Thursday.

The latest prices are equivalent to $56-57 per tonne cfr China in the seaborne market.

Dalian Commodity Exchange - afternoon closeThe most-traded May iron ore futures contract rose to i ts upper limit of 451.50 yuan ($70) per tonneduring the day, before closing at 449.50 yuan ($69) per tonne at the end of Friday, up 14 yuan ($2) per

tonne from Thursday’s closing price.


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Raw Materials Trade Log, March 18, 2016

Latest transaction: Iron ore

Iron ore

Global Ore, 170,000 tonnes, 62% Fe Pilbara Blend fines, sold at $57 per tonne cfr China, April arrival.

Beijing Iron Ore Trading Center, 170,000 tonnes, 65% Fe Carajas iron ore fines, sold at $61 per tonne cfrChina, April arrival.

Global Ore, 170,000 tonnes, 63.5% Fe Brazilian Blend fines, sold at May average of Metal Bulletin andMysteel's 62% Fe indices plus premium of $3.50 per tonne, April arrival.


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7.5% C major European

destinations € per tonne610 645

Ferro-molybdenum basis 65%

min, in-warehouse Rotterdam,

$ per kg Mo

13.4 13.8

Manganese Ore Index 44% Mn,

Cif Tianjin $ per dmtu of metal

contained

3.64 3.64

Manganese Ore Index 37% Mn,

Fob Port Elizabeth $ per dmtu

of metal contained

3.62 3.62

Click here for price disclaimer

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line, Krakatau pain...Editor Vera Blei reviews the main news covered by Steel First over the past week.

Domestic steel prices in China as well as iron ore benchmark prices embarked on another rollercoasterride this week.

The Chinese domestic hot rolled coil (HRC) market surged again on Friday March 18 as further increasein billet and futures values strengthened market sentiment.

This meant prices were unchanged on the week following several days of dramatic fluctuations, while

buying activity was relatively robust, as participants expect further price rises next week.

After sliding in the first half of this week, China’s spot rebar prices bounced back in the second half amidgains in Tangshan’s billet market.

In our weekly Steel First Outlook column, Metal Bulletin Research (MBR) looked at the international rebarmarkets in light of the recent price increases imposed by China, with a view on whether prices havebottomed.

Meanwhile, Metal Bulletin’s benchmark 62% Fe iron ore index took a tumble early in the week to $52.88per tonne cfr Qingdao, only to pick up again to close at $57.50 per tonne cfr on Friday March 18, to endthe week up $0.41 week-on-week.

Trade policyThe European Commission (EC) is aiming to cut the consultation process for anti-dumping investigationsby up to two months by dropping the 'lesser-duty rule', increasing the use of written consultations,applying stricter deadlines for the submission of evidence and grouping multiple hearings together.

The EC has started bilateral talks with major steel-producing nations, with the aim of tackling globalovercapacity.

The EC’s Steel Contact Group held meetings with Japan and China, on March 8 and 10, respectively,and has set up further meetings with both countries, as well as with India, Russia, Turkey and the USA.

India’s Directorate General of Safeguards has recommended that the country impose of safeguardingduty on imports of hot rolled coil (HRC) for a period of three years.

The Turkish Ministry of Economy announced a 30.10% dumping margin for colour-coated coil fromChina.

Ministers of commerce and industry of member states of the Gulf Co-operation Council (GCC) will meetsoon to discuss a possible increase in the import duty on rebar to 15%, market participants have toldSteel First.

Around the worldKrakatau Steel, Indonesia’s biggest steelmaker, saw its operating loss more than double in 2015 on theback of big drops in both steel shipment volumes and sales prices.

The company has pushed back the expected commissioning date for its planned 1.5-million-tpy hot strip

mill to the first quarter of 2019.

In Europe, ArcelorMittal is to partially close its Zumárraga long products mill in Spain due to the“exceptionally difficult market conditions”.

The decision by Brazilian steelmaker Usiminas to go ahead with a capital increase is not enough toassure its sustainability, according to analysts.

The company has signed standstill agreements with its main creditor banks to suspend the payment of itsdebt obligations for a four-month-period, the Usiminas said on Friday March 18, on the condition that thecapital increase is approved.

And finally, US coal miner Peabody Energy is on the brink of insolvency, after it defaulted on loanpayments worth $1.6 billion.

Shrinking demand from China has left the coal market massively oversupplied, while competition fromcheap shale gas, coupled with increased operating costs due to stricter environmental regulations in theUSA, have put coal companies in the country under increasing pressure.

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Related Articles Add Comment

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Peabody faces bankruptcy amid saturated coal marketUS coal miner Peabody Energy is on the brink of insolvency, after it defaulted on loan payments worth$1.6 billion.

“If our cash flows and capital resources are insufficient to fund our debt services obligations, we may beforced to sell assets, seek additional capital to attempt to meet our debt service and other obligations orseek to restructure or refinance certain debt obligations,” the company said in a 10-K filing – acomprehensive summary of a company’s financial performance – to the US Securities & ExchangeCommission earlier this week.

Peabody, the world’s largest privately owned coal producer, said it was discussing debt restructuring andrefinancing options with creditors but added that if the measures were unsuccessful, then it would be

required to “re-organise [the] company in its entirety, including through bankruptcy proceedings”.

Shrinking demand from China has left the coal market massively oversupplied, while competition fromcheap shale gas and increased operating costs from stricter environmental regulations in the USA haveput coal companies in the country under increasing pressure.

Peabody had already announced a slew of cost-cutting measures in 2015, including the termination of

250 workers at its coal mines in Australia.

Its earnings before interest, taxes, depreciation and amortisation (Ebitda) slumped to $53 million in thefourth quarter of 2015, down from $208 a year earlier.

Peabody sold 15.7 million tonnes of metallurgical coal in 2015, down 9% on the year.

Steel First’s fob Australia premium hard coking coal index averaged $77.82 per tonne for the fourthquarter of 2015, down from $113.02 per tonne a year earlier.


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ASIA

China’s spot HRC prices end week flat after market zig-zagChina’s spot hot rolled coil market surged again on Friday March 18, although prices were unchanged onthe week following several days of dramatic fluctuations.

Key drivers

Prices rose again on Friday, as the further increase in billet and futures strengthened market sentiment.

Buying activity was relatively robust, as participants expect further price rises next week.

Liaoning-based Benxi Iron & Steel became the latest steelmaker to lift its HRC list prices, with anincrease of 200 yuan ($31) per tonne for April delivery.

Prices ended the week flat in both Shanghai and Beijing, however.

Quote of the day“Sales were generally good today. Some sellers were even tempted to suspend offers this afternoon forhigher prices next week,” a Shanghai-based trader told Steel First.

Shanghai Futures Exchange

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The most-traded May HRC futures contract closed at 2,322 yuan ($356) per tonne on Friday, up 59 yuan($9) per tonne from Thursday’s closing price.

Further readingBenxi Iron & Steel lifts HRC, CRC prices for April deliveryChina AM: Futures edge up on strengthening of spot prices

The Steel First price book contains historical data for HRC prices in eastern China and northern China


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Benxi Iron & Steel lifts HRC, CRC prices for April deliveryNortheast China steelmaker Benxi Iron & Steel (Benxi) is raising its list prices for hot rolled and cold

rolled coil for April delivery.

The Liaoning-based mill is raising its HRC prices by 200 yuan ($31) per tonne and CRC by 400 yuan($61) per tonne, it announced late on Thursday March 17.

As a result, Benxi will sell its Q235 5.5mm HRC at 2,440 yuan ($374) per tonne and its SPCC 1.0mmCRC at 3,250 yuan ($498) per tonne. Both prices are on an ex-works basis excluding VAT.

The steel producer’s latest pricing policy follows similar moves by fellow north-China mills Anshan Iron &Steel and Hebei Iron & Steel, buoyed by the recent surge in domestic steel prices.


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China’s spot rebar market up on billet rally After the sliding in the first half of this week, China’s spot rebar prices bounced back in the second half

amid gains in Tangshan’s billet market.

Key driversThe continual rise in the price of billet in Tangshan encouraged sellers in China’s eastern region to raisetheir offers. Buying interest also intensified, sending buyers rushing into the market.

The upward momentum in north China was even stronger, which led to some traders halting trading inthe afternoon amid concerns that the sudden surge would not last very long.

However, despite the gains in recent days, the price range in Beijing has only narrowed upwards by 10

yuan ($2) per tonne overall this week, while that in Shanghai is down 60 yuan ($9) per tonne.

Quote of the day“Unlike last week when most traders would take a wait-and-see approach amid the price surge, they arenow selling to lock in the profits,” a Shanghai-based trader said.

Billet As at 3pm, billet was being traded at 1,910 yuan ($295) per tonne including VAT in Tangshan, after majorproducers lifted their ex-works prices by 90 yuan ($14) per tonne in the afternoon.

The price remains 110 yuan ($17) per tonne lower than last Friday, however.

Shanghai Futures ExchangeThe most-traded October rebar futures contract closed at 2,118 yuan ($327) per tonne on Friday, up 40

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yuan ($6) per tonne from the previous day’s closing price.

The Steel First price book contains historical data for rebar prices in eastern China and northern China


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Scrap import prices in India stable as UK, US sellers target othercountriesImport prices for heavy melt (HMS) and shredded scrap in India remained largely unchanged over thepast week, as US and UK sellers looked elsewhere for higher-value sales.

The relative stability followed price rises of $20-25 per tonne for HMS and $17.46 per tonne for shreddedscrap last week.

“Generally, sellers from the USA and the UK are withholding from offers into India as they can sell atbetter prices to Turkey currently,” one India-based trader said.

Steel First's weekly index for shredded scrap delivered to India closed at $227.14 per tonne cfr NhavaSheva on Friday March 18, down by $0.97 from last week's $228.11 per tonne cfr.

An offer for UK-origin shredded scrap was heard at $230 per tonne cfr Nhava Sheva. That was downfrom the offer of $230-235 per tonne cfr heard last week.

Bids for UK-origin material were heard at $225 per tonne cfr Nhava Sheva, flat week-on-week.

No new offers or deals for the US-origin shredded scrap were heard over the past week.

Offers were earlier heard at $225-235 per tonne per tonne cfr Nhava Sheva, while deals for USA-originshredded scrap were heard at $218 per tonne cfr.

“With the new [higher prices] in Turkey, I don't think the suppliers will want to sell much to India,” oneUAE-based trader said. “Indian buyers are already struggling to buy at the current prices,”

HMS gradeSteel First's weekly price assessment for HMS 1&2 (80:20) imported into India was at $215-220 pertonne cfr Nhava Sheva on Friday March 18, up from $210-220 per tonne cfr a week earlier.

Deals for the Middle East-origin HMS 1&2 (80:20) were heard at $220 per tonne cfr Nhava Sheva, withoffers for the material earlier heard at $215-230 per tonne cfr Nhava Sheva.

An offer for European HMS 1&2 (80:20) was heard at $220 per tonne cfr Nhava Sheva, “[but] there is nobuying interest at this level”, the UAE-based trader said.

A sale of HMS 1&2 (80:20) from Latin America was heard at $215 per tonne cfr, down from $220 pertonne cfr for the same material last week.


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South Korean import scrap prices up $22-27 on Japan, Russia

dealsImport prices for bulk scrap cargoes brought into South Korea have gone up by as much as $22-27 pertonne over the past two weeks, following the conclusion of new bookings for cargoes from Japan andRussia.

At least two local electric arc furnace (EAF) mills booked cargoes of A3-grade scrap from Russia at $199per tonne cfr this week, for volumes totalling as much as 70,000 tonnes, sources told Steel First onFriday March 18.

The price is $27 higher in comparison than the previous deal for similar material of the same origin,closed at $172 per tonne cfr early in March.

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South Korean EAF mills also purchased cargoes of Japanese H2-grade scrap this week at prices rangingbetween ¥19,500 ($174) and ¥19,900 ($178) per tonne fob Tokyo Bay. This was up by ¥2,500-2,900($22-26) from prices as low as ¥17,000 ($152) per tonne fob two weeks ago.

Adding freight rates as low as $18-20 per tonne, the new booking prices would equate to $192-198 pertonne cfr, one South Korean market participant estimated on Friday, though he acknowledged that theyen exchange rate has been fluctuating recently.

“The price is getting close to $200 [per tonne cfr],” he said.

There were no reported deals for USA-origin bulk scrap cargoes, with the latest offers heard around$225-230 per tonne cfr for HMS 1 material.

“At first, I presumed the price increase in the scrap market was going to be temporary, but now it seemsthe uptrend will continue,” the same source in South Korea said.

The continuous pressure from international scrap prices has recently prompted Hyundai Steel, SouthKorea’s largest EAF steelmaker, to raise its H-beam export prices by $40-50 per tonne.

Elsewhere in Asia, Steel First heard of offers for HMS 1&2 (80:20) bulk cargoes from the USA at around$230 per tonne cfr in Vietnam.

There was news about a booking taking place in Indonesia at the same $230 per tonne cfr level, although

it was not clear whether the origin of the cargo was the USA or Australia.


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US container scrap prices approaching $200 per tonne cfr inTaiwanImport prices for containerised HMS-grade scrap have surged for a third consecutive week in Taiwan tothe highest levels in over eight months, amid an enduring supply shortage from the USA.

Steel First’s import price assessment for USA-origin HMS 1&2 (80:20) is $185-195 per tonne cfr Taiwanfor the week ended Friday March 18, up $10-15 per tonne from $175-180 per tonne a week ago.

Prices could soon reach the $200-per-tonne-cfr mark – last seen in the East Asian territory in early July

last year – according to several sources.

“My customers are angry, because every week my US suppliers raise offer prices by some $10 [pertonne] or so,” one trader said on Friday.

But when buyers reluctantly accept the higher prices, suppliers from the West Coast of the USA decreasethe available offered volumes as they believe the uptrend will continue in the market, he explained.

Bookings were heard as low as $185-187 per tonne cfr in the beginning of the week for small cargoes,before moving up to $190-193 per tonne cfr and finally $195 per tonne cfr by the end of the week, severaltrader and buyer sources told Steel First.

Offer prices, meanwhile, were reaching levels close to $200 per tonne cfr on Friday.

“US suppliers prefer to sell to Vietnam or India, so the offers we’re getting are for small quantities, up to

1,000 or 2,000 tonnes only,” a source at a Taiwanese electric arc furnace (EAF) mill pointed out.

A source at another EAF operator complained that prices had been “changing too much”, almost on adaily basis, which makes it more difficult for it to confirm bookings.

Meanwhile, offers for H2-grade scrap from Japan – whose prices are usually similar or just $1-2 pertonne higher than those for HMS 1&2 (80:20) cargoes from the USA – were heard as low as $199-202per tonne cfr earlier this week before moving up to $205-210 per tonne cfr by Friday.

At least one booking has been made at $205 per tonne cfr, sources said.

In South Korea, there were bookings made this week for Japanese H2-grade cargoes that would equateto levels of around $192-198 per tonne cfr.

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Rising seaborne coking coal prices leave participants in a bindThe upside in the seaborne hard coking coal spot market continued to surprise participants withtransactions being registered at higher prices on Friday March 18.

A cargo of branded materials traded at $86.50 per tonne fob Australia on physical trading platform GlobalCoal, which left both sellers and buyers stumped as to what to do next.

“I don’t have any bids for our cargoes but I also don’t know what levels to offer them at,” a source at aninternational trading company told Steel First.

He added that the $86.50 per tonne deal would be a reference point for sellers, but end-user buyers haveyet to come to terms with what they were seeing.

“Buyers are afraid that if they pay now, the market may fall very quickly after that. Sellers are afraid that ifthey sell now, the market might continue to rise,” he said.

Sources in Japan said the recent price rise in the spot market was making it “very difficult” for them toconclude negotiations for their quarterly contracts. Two miners were heard to have tabled their offers butmills’ reaction to these were not known at the time of writing.

In China, steel and iron ore prices saw another comeback with billet rising 90 yuan ($14) per tonne totrade at 1,910 yuan ($295) per tonne while Metal Bulletin’s 62% Fe benchmark index rose $1.41 pertonne to $57.50 per tonne cfr China.

An indicative offer of one premium brand was heard at $87 per tonne cfr China while another, for asecond-tier product, was at $83 per tonne cfr China.

“The market seems firm now and it is possible for it to go up further,” a Chinese trading source said.However, he admitted that a decline could happen any time too.

Steel First’s fob Australia premium hard coking coal index rose $0.64 per tonne on Friday to $85.52 pertonne while the fob Australia hard coking coal index gained $0.36 per tonne to $76.80 per tonne.

The cfr China indices were both unchanged, at $86.25 per tonne for premium hard coking coal and$82.63 per tonne for hard coking coal.

On the Dalian Commodity Exchange, the most-traded May coking coal futures contract closed 10.50yuan ($2) per tonne higher for the day, at 633.50 yuan ($98) per tonne. Similarly, the most-liquid Maycoke contract closed 11.50 yuan ($2) per tonne higher, at 772.50 yuan ($119) per tonne.


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East Asian stainless steel market flat as participants await cuesThe East Asian stainless steel market held steady this week, as participants braced themselves for anexpected list price increase by major Chinese producer Taigang Stainless this weekend.

May/June shipments of benchmark 304 stainless 2mm cold rolled coil were assessed at $1,650-1,700

per tonne cif East Asian port on Friday March 18, unchanged from last week.

According to trading sources, South Korean major Posco lifted its April list prices for 300-series productsby 100,000 Won ($86) per tonne earlier this week.

“We are waiting for Taigang’s new l ist prices at the moment, to decide how much we would raise ouroffers,” a trader based in east China said.

“China’s domestic market is picking up amid recovering demand, and demand in main export destinationsis picking up as well. Although nickel is a bit weak recently, its effect on stainless steel prices is limitednow,” he added.

The three-month nickel contract on the London Metal Exchange ended the official trading session onThursday March 17 at $8,675-8,700 per tonne, down $80-95 per tonne on the week.

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In China’s major Wuxi market, prices for benchmark 304 cold rolled coil prices were at 11,400-11,600yuan ($1,760-1,791) per tonne including VAT on Thursday March 17, the same as Steel First'sassessment last Friday. But the range has widened upwards by 100 yuan ($15) per tonne week-on-week.


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Daewoo changes name to Posco Daewoo in bid for ‘synergy’with steelmaker South Korean trading firm Daewoo International has changed its name to Posco Daewoo as part of anew corporate strategy aiming at creating synergies with the world’s fif th-largest steelmaker.

“Our company name was changed on Monday March 14 and the main reason is to create [synergy] with

Posco,” a spokesman for the trading firm confirmed to Steel First in an email late on Thursday March 17.

The company – South Korea’s largest general trading house – is 60.3% owned by Posco.

An official ceremony to mark the name change and the launch of a new corporate brand strategy isscheduled for Monday March 21, a second company official told Steel First.

Neither of them provided any further details regarding the synergy that both companies are hoping toachieve.

‘Top 3’In a market presentation last month, Posco Daewoo said it wanted to retain its position among the world’stop three steel-trading companies through “cooperation” with Posco.

The company traded 8.63 million tonnes of steel products last year, up 2.1% from 8.45 million tonnes in2014.

It plans to raise this to 15 million tonnes in 2020 by expanding into new markets and making use of a“strategic alliance” with Posco, according to the presentation.

In the long term, it also plans to continue extending its business scope from “traditional trading” to steelmanufacture and distribution.

Apart from steel trading, Posco Daewoo operates a number of coil centres and auto steel sheet

processing centres in countries including Brazil, the USA, Slovenia and Indonesia.

It also trades non-ferrous metals, chemicals and other products, and has two other business segments:resources development, which mainly comprises business in the oil and gas, mining and agriculturesectors; and project development, which consist of infrastructure and machinery and plants.


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China AM: Futures edge up on strengthening of spot pricesChina’s steel and steelmaking raw materials futures edged up during morning trading on Friday March

18, amid a largely buoyant physical market.

Futures closing prices – morning sessionShanghai Futures ExchangeOct rebar: 2,125 yuan ($328), up 4 yuan ($0.60)May hot rolled coil: 2,321 yuan ($358), up 13 yuan ($2)

Dalian Commodity ExchangeMay iron ore: 449 yuan ($69), up 1 yuan ($0.20)May coking coal: 633.50 yuan ($98), up 2.50 yuan ($0.40)

BilletTangshan billet price: 1,820 yuan ($279) per tonne, unchanged from Thursday afternoon after majorproducers lifted ex-works prices by 50 yuan ($8) per tonne.

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Iron oreMetal Bulletin’s 62% Fe Iron Ore Index was calculated at $56.09 per tonne cfr on Thursday March 17, up$2.52 per tonne from the previous day.

Key market newsMore steelmakers in northern China have lifted their list prices for April delivery, following the recent spotmarket surge. Liaoning-based Benxi Iron & Steel has raised its hot rolled coil price by 200 yuan ($31) per

tonne and that for cold rolled coil by 400 yuan ($61) per tonne.

Domestic steel prices are expected to rise further today, reversing falls seen earlier in the week.

East Asian May/June shipments of benchmark 304 stainless 2mm cold rolled coil traded flat on the weekat $1,650-1,700 per tonne cif East Asian port as participants waited for stronger market cues beforeadjusting offer levels.

Further readingBenxi Iron & Steel lifts HRC, CRC prices for April deliveryEast Asian stainless steel market flat as participants await cues


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MIDDLE EAST

Turkish exporters slam US methodology in HRC anti-dumpingcaseThe USA’s decision to impose preliminary anti-dumping duties on imports of Turkey-origin hot rolledcoil (HRC) is unacceptable, Namik Ekinci, chairman of the Turkish Steel Exporters’ Union (ÇIB), said on

Friday March 18.

Duties for Turkish producers have been set at 5.24-7.07%, according to a preliminary announcement.

The investigation was begun after requests from local producers in the USA against HRC imports fromTurkey, Australia, Japan, the Netherlands, the UK, South Korea and Brazil.

However, in January this year, the USA had announced preliminary countervailing duties among which

Turkish producers were assessed de minimis.

That earlier decision had again proven that Turkish steel companies follow free-economy rules, the ÇIBsaid.

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Ekinci criticised US methods for calculating anti-dumping margins

“We see very important methodical problems in the [USA’s] dumping investigation,” Ekinci said.

“The claim that the Turkish steel sector has been dumping is unacceptable. The methods for calculationof dumping margins are also unacceptable,” he added.

“When comparing export and local prices, similar periods of sales need to be taken into consideration.

We find no dumping in our calculations, [so] the USA must have a different method,” he said.

“Companies in the USA prefer to take an invoice date when delivery is made into consideration. Thismethod has two problems,” Ekinci said.

“One is that the USA prefers to use the most disadvantageous method for calculations. And also, theinvestigation period – the second half of 2015 – was when prices decreased by about 50%. So deliverytimes affected prices,” he explained.

“I believe that if the investigation covered a period when prices increased, the USA would use the datewhen sales were made [and not the delivery date],” he added.

Turkish companies get no state support and do not dump material, and this has been proven in everycase so far, he continued.

“The fact that the European Commission, in its case against Chinese flat steel products, takes Turkey

as an analogue country for its use of the market economy showed that [the Europeans] haveconfidence in Turkish international trade,” the union added.

The ÇIB expects a final decision on duties in the USA’s anti-dumping case to be announced in August.


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Turkish domestic HRC prices keep rising, CRC down by $20Prices in Turkey for hot rolled coil (HRC) kept increasing this week while those for cold rolled coil (CRC)fell by $20 per tonne.

HRC was offered from producers at $440-450 per tonne ex-works for May production. Most producers

were planning to stop taking May orders and to offer new prices for June production soon.

Some deals for HRC were made at $410-430 per tonne ex-works.

Steel First’s weekly price assessment for Turkish domestic HRC was $410-430 per tonne ex-works onFriday March 18, up from the previous $370-430 per tonne ex-works.

“The price increases have to stop. This is not logical,” a trader said.

CRC was sold at $500-520 per tonne ex-works, with offers at $500-540 per tonne ex-works.

The weekly price assessment for Turkish domestic CRC was $500-520 per tonne ex-works on Friday,down on the higher end from the previous $500-540 per tonne ex-works.

Offer prices for HRC exports from Turkey were $400 per tonne fob, but buyers were bidding $380-390per tonne fob.

The weekly price assessment for Turkish HRC exports was $390-400 per tonne fob on Friday, up fromthe previous $345-385 per tonne fob.


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Turkish coated coil prices dip on lack of demandCoated coil prices in Turkey’s domestic market dropped slightly this week, as a lack of demand failed tosupport higher offers.

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A producer sold 0.50mm thick hot dipped galvanized coil (HDG) at $720 per tonne ex-works and otherdeals were heard at $670 per tonne ex-works, sources told Steel Fi rst.

Offers for the product were at $680-720 per tonne ex-works.

Steel First's weekly price assessment for Turkish domestic HDG was $670-720 per tonne ex-works onFriday March 18, down at the lower end from the previous $680-720 per tonne ex-works.

Pre-painted galvanized coil (PPGI), or colour-coated coil, also of 0.50mm thickness and with 9002colour code, was sold at $760 per tonne ex-works by one producer, while another was selling at $800-

810 per tonne ex-works.

Steel First's weekly price assessment for domestic PPGI in Turkey was $760-810 per tonne ex-workson Friday, from the previous $800-810 per tonne ex-works.


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Weak demand, imminent holiday keep Iranian steel prices onholdThe Iranian domestic steel market was largely unaffected by price rises in the international market this

week.

The approaching Iranian new year holiday combined with weak local demand to keep a lid on prices.

But most market participants are optimistic that price increases in the global market will boost localmarket prices in coming weeks.

“We can’t expect a booming market for steel in the near future, all circumstances considered, but theprice increases for steel in global markets, along with high inflation in Iran, could help to raise domesticsteel prices after the new year holiday [starting on March 19],” a trader said.

In the free currency market, $1 could be exchanged for 34,400 rials on Wednesday March 16,unchanged week-on-week. The official exchange rate on March 16, according to Oanda.com, was $1 to30,218 rials.

Billet in sizes f rom 125x125mm to 150x150mm traded this week at 9.30-10.20 million rials ($270-297)per tonne ex-stock Tehran, down from 9.35-10.10 million rials ($272-294) per tonne last week.

CIS suppliers raised offer prices significantly for billet, to $340-350 per tonne cfr Iranian northern ports,

from $280-290 per tonne last week.

Khouzestan Steel, the major supplier of semi-finished products in Iran, sold billet at 9.70-9.95 millionrials ($282-289) per tonne with delivery of 35-95 days through the Iran Mercantile Exchange (IME).

Local mills sold rebar at 11.50-12.30 million rials ($334-358) per tonne ex-stock Tehran, compared with11.35-12.50 million rials ($330-363) per tonne the week before.

Esfahan Steel sold rebar at 11.30-11.90 million rials ($328-346) per tonne ex-stock with delivery of 4-67days through the IME.

Hot rolled coil (2-5mm) traded at 13.35-16.20 million rials ($388-471) per tonne ex-stock Tehran,compared with 13.50-16.40 million rials ($392-477) per tonne last week.

Mobarakeh Steel sold HRC at 14.10-14.35 million rials ($410-417) per tonne ex-works, on 36-67 daysdelivery terms, through the IME.


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EUROPE

Domestic rebar prices in Poland up on higherscrap costs, demandPolish steel mills have been trading rebar this week at higher prices than

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previously as scrap prices have increased, sources told Steel First on FridayMarch 18.

“This month the mills have paid about €10-15 [$11-17] per tonne more than inFebruary, and they raised rebar offers immediately after the monthly scrapcontracts were made,” a Polish trader said.

Steel First’s price assessment for domestic 12mm B500B-grade rebar was 1,410-

1,460 zloty ($371-384) per tonne ex-works on March 18, up from 1,370-1,440zloty ($360-378) per tonne ex-works last week.

Deals for rebar have been reported at 1,420-1,450 zloty ($373-381) per tonne cpt,while official offers have reached 1,470 zloty ($386) per tonne cpt, with transportcosts of about 10-20 zloty ($3-5) per tonne.

Demand increased this week as Polish traders started restocking ahead of theseasonal rise in construction activity. In addition, the growth of purchasing interestwas supported by the fact that traders have been buying more material due toexpected further rebar price growth in April.

As a result of the growth in demand, Polish mills have sold out material from stockand there was no material available at short delivery times, according to marketsources.


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Germany sees steel scrap shipments fall 7.5% in2015Scrap shipments in Germany fell 7.51% year-on-year in 2015, according to datareleased by the country's steel recycling association, BDSV.

The country’s total scrap shipments fell to 25.65 million tonnes in 2015 from 27.73million tonnes in 2014, BDSV said on Thursday March 17.

The drop in shipments was driven by both lower export and domestic deliveries inGermany.

Scrap export shipments fell 16.37% year-on-year to 7.94 million tonnes in 2015,while domestic shipments dropped by 5.89% year-on-year to 21.09 million

tonnes.

Germany’s crude steel output fell 0.6% year-on-year to 42.68 million tonnes in2015.

However, production of crude steel from electric arc furnaces (EAFs), where theinput is almost 100% scrap, fell 3.4% year-on-year to 12.62 million tonnes, whileoutput of steel produced in basic oxygen furnaces (BOFs), which use up to 18%scrap, increased by 0.6% year-on-year to 30.05 million tonnes.

German scrap suppliers delivered 14.33 million tonnes of scrap to EAF mills and3.38 million tonnes to BOF mills, falls of 3.44% and 0.50% year-on-year,respectively, BDSV said.

Lower scrap shipments in Germany have been also connected to the generalnegative price trends in the global steel market.

The Metal Bulletin daily ferrous scrap index for Northern European HMS 1&2(80:20) material delivered to Turkey – the world's leading scrap consumer –dropped by 43.29% over the last year.

And low-cost steel imports from China also had a negative impact on ferrousscrap prices in Germany and elsewhere.


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UK stainless scrap prices steady after nickel rise,sterling boostInter-merchant stainless steel scrap prices in the UK remained unchanged thisweek after a strengthening of sterling cancelled out a rise in the nickel price,sources told Steel First on Friday March 18.

Steel First’s weekly price assessment for UK domestic 18/8 stainless steel scrapremained at £580-610 ($832-875) per tonne on March 18.

The three-month official bid/offer spread for nickel on the London Metal Exchangewas $8,910/8,915 per tonne on March 18, up by $105 from $8,805/8,810 pertonne a week ago.

Sterling was trading at £1 to $1.4343 on March 17, having risen sharply day-to-day from £1 to $1.4133 on March 16, according to exchange rate serviceOanda.com.

“We have kept our buying price stable due to concerns over reduced demandfrom our major consumers in the second quarter of 2016,” one trader said.

“Supply for 18/8 stainless solids is reasonable, and it’s good for chrome,” asecond trader said.

The price for 18/8 alloy steel turnings in the UK domestic market was £495-520($710-746) per tonne delivered to the scrapyard, calculated at an average of 85%of the solids price.

Inter-merchant prices for chromium alloy steel solids remained stable week-on-week, with 16-17% Cr solids at £85-105 ($122-151) per tonne, and 12-13% Crsolids at £55-65 ($79-93) per tonne.

EU import pricesSteel First’s weekly price assessment for 18/8 stainless steel solids imported intomainland Europe also remained steady week-on-week at €850-870 ($958-980)per tonne cif main European port, on March 18.

Imported 18/8 stainless steel turnings prices were assessed at €730-750 ($823-845) per tonne cif main European port, calculated at an average of 86% of thesolids price.

“It was a very quiet second half of the week,” a third trader said. “It started offwell, but when the market went down, it became very dull.”


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EU stainless market too weak for base price rises,Damstahl saysThe European stainless steel market is not strong enough yet to accept any risein base prices, Danish distributor Damstahl said in its monthly stainless steel

briefing on Friday March 18.

Any move towards a price increase could only come from a further weakening ofthe euro, which could happen as the European Central Bank (ECB) cut eurozoneinterest rates to 0% on March 10, Damstahl said.

However, Damstahl said there were signs of optimism from other Europeanmarkets, including Italy, as well as from price rises in nickel and stainless steelscrap.

The three-month nickel price on the London Metal Exchange was $8,910/8,915per tonne on March 18, compared with $8,325/8,350 per tonne on February 18.

Steel First’s weekly price assessment for 18/8 stainless steel solids imported into

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mainland Europe was €850-870 ($958-980) per tonne cif main European port, onMarch 18, up from €810-830 ($913-935) per tonne on February 19.

Mills have reported an increasing order intake, while delivery times are nowslightly longer compared to a month ago, Damstahl said.

Meanwhile, alloy surcharges for European stainless flat and long steel also fell inMarch, though market participants expect a rebound in April.

Demand in a number of European end-user industries, including consumer

goods, the automotive sector, and the construction industry are considered themain drivers of the EU stainless market, Damstahl said.

European stainless crude steel production fell roughly 2% year-on-year toapproximately 6.7 million tonnes in the first eleven months of 2015, Damstahlsaid.

Regional marketsEurope’s largest stainless steel market, Germany, is lacking in momentum due toits exposure to week capital goods investment and lacklustre export markets,including China, Damstahl said.

It added that the German market is likely to pick up after the Easter break, while

delivery times remain short as stocks are sufficient.

In the Netherlands, there has been an improvement in exports, while stock levelshave declined as mill delivery times have increased, although there is a lack largevolume orders.

Damstahl said March prices in the Netherlands for stainless products areexpected to be lowest in the first half of 2016.

Denmark, meanwhile, has seen stainless prices stabilise, with Damstahl reportingthat drops have partially stopped and there have even been some priceincreases, despite the fluctuating nickel price.

The Swedish stainless market has seen strong order volumes, with end-userstocks generally at low levels. And the recent recovery in the three-month LMEnickel price has created hope of increasing prices in the second quarter of 2016,Damstahl said.

In Norway, there seems to be a market consensus that prices have bottomed outafter a very weak six months, Damstahl said, with market participants seeing arise in orders. This is likely to be down to the stabilisation in alloy surcharges,which are expect to rise in April.

The recent rise in the price of oil is also a positive for the Norwegian stainlessmarket, with ICE Brent, the international crude oil benchmark, trading at $41.44per barrel on March 18.

Slovenia has also reported low stock levels, with an expectation that distributorswill have to replenish their inventories as demand rises. The Slovenian economyis forecast to grow by more than 3% in 2016, Damstahl said.

In Finland, base prices and alloy surcharges reached their lowest levels for 2016in March amid strong competition, while the domestic economy is stil l affected bythe overexposure of its leading companies to the commodity markets.

However, the Äänekoski bio pulp mill in south-central Finland and new projects atthe Meyer shipyard in the southern city of Turku are keeping the Finnish stainlessmarket busy, Damstahl added.


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EU stainless base prices unchanged amid lowermarket activity

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European stainless steel base prices remained unchanged this week as marketactivity dropped, sources told Steel First on Friday March 11.

Steel First’s weekly base price assessment for 2mm, grade-304 cold rolled (CR)stainless sheet remained at €1,060-1,090 ($1,195-1,228) per tonne, while theprice of grade-316 CR stainless sheet stayed at €1,360-1,390 ($1,533-1,566) pertonne.

“For stainless sheets, it has been very quiet, which is a surprise as the alloysurcharge is likely to rise next month,” one distributor told Steel First.

“The telephone has just not been ringing this week – it’s not a stock problem, or aprice problem, it’s a demand problem,” he said.

“We’re facing a market where nobody will take a risk to buy bigger quantities ifthey think the alloy extra will go up the next month, because it could just as easilygo down in May, and then you’d have to depreciate the value of your stock,” asecond distributor said.

The three-month official bid/offer spread for nickel on the London Metal Exchangewas $8,910/8,915 per tonne on March 18, up by $105 from $8,805/8,810 pertonne a week ago.

On the long products front, Steel F irst’s weekly price assessment for grade-304

bright bar was also unchanged on Friday at €790-820 ($890-924) per tonnedelivered in Europe.

There have been moves to try to raise the price of stainless steel bright bar,sources told Steel First.

“For some bright bar orders, the delivery time from EU mills will soon beSeptember, because there will be closures over August and lower production,meaning they may try to raise base prices,” the second distributor said.

“But there are no grounds to believe that it will lead to a rise in prices right now,”he added.

“Everyone wants to raise the base price but nobody wants to be the first to move,”a third distributor said.

Steel First heard of attempted price rises for grade-304 bright bar ranging from

€10-20 ($11-23) per tonne, to higher figures of €30-50 ($34-56) per tonne inGermany.

Market participants expected lower market activity over the next two weeks,ahead of the Easter holiday weekend.

“We have Easter next week [and that] will definitely affect sales figures,” a fourthdistributor said.

Steel First’s grade-304 stainless steel raw materials index, which is based on atypical grade-304 slab from European mills, rose by $19.01 per tonne on March14, to $991.46 per tonne.


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KVV Group mothballs KVV Liepajas Metalurgs millin LatviaUkrainian company KVV Group announced its decision to mothball its KVVLiepajas Metalurgs rebar mill in Latvia on Friday March 18.

The group made the decision due to lack of support from the Latvian governmentand the crisis in the international steel market, the company said.

KVV Group presented Latvian authorities a debt-restructuring plan on March 1

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this year, and the Latvian treasury was supposed to decide on whether toapprove it on March 15.

However, the government’s decision has been postponed until March 22 as itrequires some clarification from KVV Group, according to a spokeswoman for theLatvian treasury.

An independent audit of KVV Liepajas Metalurgs, conducted in November 2015,

showed that the mill was sold at a price that was significantly higher than itsmarket price at the time of assessment, KVV Group said.

The Ukrainian company, therefore, claims that Latvia’s authorities have beenconsidering the debt restructuring plan based on incorrect financial informationabout KVV Liepajas Metalurgs.

The group must still pay more than €70 million ($79 million) to cover the maindebts of Liepajas Metalurgs.

KVV Group bought the Latvian company in September 2014 for €107 million($121 million) in deferred payment, and since then has invested a further €50million ($56 million) in the mill.

In addition to the main debt, KVV Group owes Latvian gas supplier Latvijas Gaze

more than €640,000 ($721,000). Because of this debt, Latvijas Gaze cut off

supplies to the mill in the second half of February 2016.

KVV Liepajas Metalurgs halted operations at the mill in late January 2016, due tothe difficult market conditions.


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UK steel industry dismayed by lack of governmentsupport in BudgetThe UK steel industry has expressed its dismay at the ongoing lack ofgovernment support and the continued inclusion of plant and machinery inbusiness rate calculations.

After a turbulent year, the UK steel industry was hoping for some kind of support

from the UK chancellor, George Osborne, when he announced this week’s springBudget.

“The industry will be relieved that there is no fundamental overhaul of the [UK]business rates system and that bills look set to increase less sharply in thefuture,” said Lee Hopley, chief economist at the UK manufacturers organisation,EEF, on Thursday March 17.

“However, the chancellor's decision to remove cheaper properties from payingbusiness rates only increases the burden on seeking revenue from plant andmachinery included in calculations,” she added.

Osborne cut business rates for small businesses by raising the tax relief threshold

to £15,000 ($21,514) a year, but kept plant and machinery in the business rates

calculation.

“[This] is a disappointment for the steel industry in particular,” EEF ceo TerryScuoler said. “The government will need to do more to support steel this year.”

Roy Rickhuss, general secretary of the the Community union, which alsorepresents steelworkers, said the inclusion of plant and machinery represented atax on investment.

“The government’s much-heralded review of business rates has failed to deliverthe urgent support the steel industry needs,” Rickhuss said.

“Steel producers will continue to be penalised with high business rates for the

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investments they have made, adding uncompetitive costs in a difficult globalmarket,” he added.

UK firms have large additional business rate costs when buying plant andmachinery, compared with their European peers in France, Germany andelsewhere, according to industry body UK Steel's 2015 annual review.


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Spain’s crude steel output up by 4.2% in 2015Crude steel production in Spain increased by 4.2% year-on-year on 2015,according to data released by Spanish steelmakers’ association Unesid on FridayMarch 18.

Spanish steelmakers produced a total of 14.8 million tonnes of crude steel lastyear. The rise was sustained in both carbon and stainless steel production.

Production growth slowed significantly in the fourth quarter of 2015, however,showing only a 1% year-on-year rise.

Deliveries of finished steel products were almost unchanged in Spain at 14.3million tonnes in 2015, up by 0.6% year-on-year. A significant 13% year-on-yeargrowth over the first three quarters of the year was offset by a drop in the fourthquarter.

Spanish steelmakers delivered 5.1% more steel products year-on-year to thedomestic market in 2015, while deliveries to other European Union countries fell

by 6.3% year-on-year.

Deliveries of flat steel products in the domestic and EU markets increased by 2%year-on-year to 5.1 million tonnes, while the figure for long steel products wasstable at 8.9 million tonnes.

Spain’s steel mills exported 9.5 million tonnes of finished steel products in 2015,3% less than in 2014. Total export sales value dropped by 5.1% year-on-year to €7.13 million ($8.03 million) last year.

Steel import volumes increased by 8.1% year-on-year to 8.9 million tonnes in2015. The increase was mainly driven by a 57% year-on-year rise in deliveriesfrom China. Imports from other European Union countries to Spain dipped by

1.9% year-on-year.

Spain’s steel consumption grew by 9.7% year-on-year in 2015 to 12.6 milliontonnes. The increase reflected a demand increase in the main steel-consumingindustries, including construction and automotive.

“The strong rise of imports did not allow the Spanish steel industry to benefit fromdemand growth,” Andrés Barceló, ceo of Unesid, said.

The situation in the Spanish steel market is likely to remain unchanged in 2016,the association said, as positive developments in steel consumption will be offsetby unfairly traded imports from China, and domestic steel mills will not be able tobenefit fully from demand recovery.


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RUSSIA & CIS

MMK will build new 450,000-tpy HDG line by 2018Russian steelmaker Magnitogorsk Iron & Steel Works (MMK) will launch a new450,000-tpy hot dipped galvanized (HDG) unit by 2018, a top sales manager tolda conference in Moscow on Thursday March 17.

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“A new coating line is also possible later on, depending on market demand,” Andrei Titov, MMK’s senior manager for coated steel sales, told delegates to the“Galvanized and Painted Rolled Products: Trends in production and use”conference.

MMK said in July last year that it had signed a contract worth more than €25million ($28.17 million) with German manufacturer SMS Group for the supply of

equipment for the HDG production facility, which was originally to have capacityof more than 360,000 tpy.

The planned capacity has been increased since then, the company’s spokesmansaid on Thursday.

MMK’s current galvanized steel production capacity is 1.86 million tpy, while itscapacity for pre-painted galvanized iron (PPGI) is 400,000 tpy.

Compatriot steelmaker Novolipetsk Steel (NLMK) has started sales from one ofthe four continuous HDG lines it relaunched last month after a modernisationexercise which boosted its capacity by 120,000 tpy.

The line at NLMK’s main production site in Lipetsk will achieve full capacity inMay, head of regional sales Vladislav Ovchinnikov told the conference on

Thursday.

NLMK also plans to construct a new 450,000-tpy HDG line at the Lipetsk complexby 2018.

Compatriot steelmaker Severstal plans to commission a new 400,000-tpy HDGline and a 200,000-tpy PPGI line by 2017.


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OMK to invest $175m into OCTG production inRussiaOMK plans to invest 12 bill ion roubles ($175.66 million) in the development ofpipe production in Vyksa, in Russia’s Nizhny Novgorod region, it said on Friday

March 18.

The Russian pipemaker intends to equip a high-tech centre for finishing of casingpipe manufactured at its Vyksa Steel Works, as well as for production ofcouplings for oil country tubular goods (OCTG).

OMK will also invest in expansion of tubing pipe production at the Vyksa plant.

The pipes are in demand even at today’s oil price, OMK said.

The company did not specify any timeline for the investment projects, however.

“OMK’s investment strategy today focuses on maximum development ofopportunities of existing facilities, and on improving product quality in order tomaintain stability of sales and profitability in difficult market conditions,” boardcha

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