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TODAY'S TOP PLATTS HEADLINES ▼ DISPLAY BY REGION

› EU HDG imports arouse suspicions of circumvention

› Chinese price slippage dampens Asian rebar market $

› Nucor, Evraz aim to raise US plate prices another $50/st $

› US solidifies CV duties on tubes from China and India

› Weekly scrap wrap: US and Baltic quotes diverge in Turkey $

$ = Steel Price Story

d: daily; w: weekly; m: monthly; q: quarterly; y: yearly;

SAMPLE PRICE SNAPSHOT JAN 05 +/- %

US domestic

Platts TSI HRC - EXW Midwest, $/s.ton 656 - 656 d +1.50 +0.2%

Platts TSI CRC - EXW Midwest, $/s.ton 835 - 835 d +0.50 +0.1%

Rebar - EXW US Southeast, $/s.ton 550 - 570 d 0.00 0.0%

Shredded Midwest US - delivered, $/l.ton 340.75 - 340.75 d +6.00 +1.8%

N.Europe domestic

Platts TSI North European HRC - EXW Ruhr, €/t 536.50 d +2.00 +0.4%

Europe domestic

Platts TSI North-West Europe Rebar - EXW NW Europe, €/t 567.50 - 567.50 w 0.00 0.0%

Turkey export

Rebar - FOB Turkey, $/t 570 - 575 d +2.50 +0.4%

Black Sea export

Billet - FOB Black Sea, $/t 515 - 515 d 0.00 0.0%

HRC - FOB Black Sea, $/t 555 - 565 d 0.00 0.0%

Southeast Asia

HRC - CFR, $/t 581 - 583 d 0 0.0%

Rebar - CFR, $/t 557 - 559 d -1 -0.2%

What is this? You haven't yet personalized your snapshot of prices

NORTH AMERICA

Flat Products

› Platts TSI US HRC assessment set at $654.50/st

› Platts TSI US CRC assessment calculated at $834.50/st

› ArcelorMittal ups the ante on US sheet price increases $

› Cold-rolled coil import prices get boost in US market $

Long Products

› CMC, SDI, Gerdau follow Nucor with $40 rebar price hikes $

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EXCHANGE RATES

8 Jan 2018

currency rate +/-

USD/EUR 0.83 +0.001USD/GBP 0.738 -0.001USD/JPY 113.3 +0.628USD/RBL 57.1 -0.037USD/RMB 6.488 -0.008USD/TRL 3.747 -0.014EUR/GBP 0.889 -0.002EUR/JPY 136.5 +0.530GBP/JPY 153.5 +0.973

ARCHIVED NEWS

Corporate and IndustryFlat ProductsLong ProductsTubes & PipesStainless & Speciality SteelsTinplateRaw Materials & ScrapShipping & Logistics

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08/01/2018mhtml:file://C:\Users\francesca_ruggiero\AppData\Local\Microsoft\Windows\Tempo...

Tubes & Pipes

› US won't sunset duties on tube imports from 7 countries

› US amends duties on mechanical tube from India

› US administrative review ups Toscelik's OCTG duty

› Canada's rig count bounces back following steep fall

Raw Materials & Scrap

› US mills finalizing January scrap buys at up $20-$30/lt $

ASIA

Flat Products

› Asia HRC market stable despite Chinese price fall $

Long Products

› Asian billet continues to drop on lower offers $

Stainless & Specialty Steels

› Asian stainless CRC prices stay flat

Corporate & Industry

› Indian mills reap the benefits of declining imports

EUROPE

Flat Products

› Turkish HRC, HDG prices push up despite sluggish demand $

› EU HRC index rationale

Long Products

› Turkey rebar quotes to US climb more than for other markets $

› Turkish mill expect flat scrap/rebar pricing $

› Van Merksteijn finds land for its steelmaking facilities

› Turkey rebar assessment rationale $


› German steel construction to remain high this year

› Recovery in Turkey's billet, slab imports continues

CIS

Long Products

› CIS billet assessment rationale $

SOUTH AMERICA

Flat Products

› LatAm Jan-Nov steel imports from China slip 10% on year

› Brazil's auto sales, exports fuel industry growth in 2017


› Brazilian pig iron export prices steady, sellers wait $

AFRICA

Long Products

› Tunisia ups billet import tax

MIDDLE EAST


› Iran's Hosco plans to double its capacity

› Iran's Mobarakeh Steel denies ESCO stake bid

WORLD


Trade IssuesEnvironmentDistributionEnd UsersFinance & FuturesPeopleNews About PlattsLabor

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› Weekly coal wrap: Prices slip a touch in slack trading $

› Weekly iron ore wrap: Market starts year on a high-note $

EU HDG imports arouse suspicions of circumventionThe volume of Chinese hot dip galvanized coil arriving in the European Union has raised eyebrows among many who expected a much larger reduction in tonnage following the provisional duty's initiation in August 2017.

Import volumes were expected to collapse following the duties for industrial grades of Chinese corrosion resistant steels, and initially that proved to be the case with monthly volumes dropping from more than 300,000 mt. However, the 120,000 mt of HDG imported in October suggests a larger share of the automotive market than many supposed.

Chinese HDG was primarily industrial grades that are not typically catered for by European producers, who prefer to focus on higher margin automotive requirements. A European mill source said the continuation of high volumes meant the duty is being circumvented. “We are sure there's either circumvention or outright fraud to declare the scopes. They [China] can serve the auto sector but they must have the contracts to show where it's going,” he said.

The biggest importer of Chinese HDG expects to increase automotive grade volumes from around 800,000 mt/year currently to 1 million mt in 2018, suggesting a monthly average of 83,000 mt going forward. But many doubt Chinese suppliers have that level of market share.

Service center and trading sources noted examples of circumvention in the second half of 2017 with material brought in as an automotive grade and then processed to be used for industrial purposes. “If you are a big service center or stockholder still linked to an auto company you are able to bring in DX51 grade (a commodity grade) theoretically as an automotive grade, so it's interchangeable. If you can clean this material of the oil, it cannot be chemically passivated so it will be oiled. If you need to coat or paint it that needs to go. There has been some circumvention on it,” a source noted in a story repeated by others.

However, the scale of circumvention is doubtful. A service center buyer said de-oiled HDG still did not work smoothly in all machinery while the costs associated with cleaning it made it uncompetitive.

“Any circumvention is extremely minimal. The problem is there no real availability ex-China, and even if you do get a price its way up there (in price),” another trader said.

The European Commission is understood to be monitoring the situation but sources agreed any investigation would be difficult to prove.

-- Peter Brennan

[related articles] [print] [back to top]

Chinese price slippage dampens Asian rebar marketSpot prices of seaborne rebar in Asia edged down again Friday, as lower offers failed to lure buyers amid a weak Chinese domestic market. S&P Global Platts assessed 16-20mm diameter BS500 rebar at $556/mt FOB China actual weight, with the midpoint down $1/mt from Thursday.

In Singapore, an offer for 10-32mm Chinese rebar was heard lowered by $5/mt to $580/mt CFR theoretical weight, said a Chinese trader, adding buyers were still hesitating to book new orders. A local stockist also received an offer at $580/mt CFR for 10-40 Chinese rebars, down by $5/mt.

“Hong Kong and Singapore markets were dead for a long time,” said a Shanghai-based trader, who said he received no bid either.

The short term price outlook was weak with growing stocks but the longer term view was unclear, said a market source; although inventories have been rising, they are much lower compared with the same period last year.

In Hong Kong, one stockist received offers for 10-40mm rebars at $600/mt CFR actual weight for Chinese rebar and $590/mt CFR for Turkish bar, adding offers continued to drop. Only one indicative bid was heard for 40mm dia rebar at $585/mt CFR actual weight from a local buyer.

-- Joy Zhuo and Dai Yuelin

[Steel Prices] [related articles] [print] [back to top]

Nucor, Evraz aim to raise US plate prices another $50/stNucor and Evraz both plan to raise US plate prices by $50/st, according to letters sent to customers on Friday.

The increases are on top of $130/st worth of plate price increase announcements made by domestic mills since November. Both moves are effective immediately and applicable to all new orders.

The S&P Global Platts TSI plate price was calculated at $738/st on a delivered Midwest basis. Prices steadily increased during the last two months of 2017, rising by approximately $85/st in total.

Mills were asking for $730-$770/st on a delivered basis for February production prior to the Nucor

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announcement, according to a service center source. He added that $760-$780/st could soon become the new range.

-- Michael Fitzgerald


US solidifies CV duties on tubes from China and IndiaThe US International Trade Commission on Friday determined that US producers of cold-drawn mechanical tubes were materially injured by imports from China and India that were found to be subsidized by their respective governments.

The final affirmative injury determinations confirm the imposition countervailing duties determined by the US Commerce Department in early December.

Regarding China, Commerce determined a final subsidy rate of 21.41% for Jiangsu Hongyi Steel Pipe Co. and 18.27% for Zhangjiagang Huacheng Import & Export Co. All other Chinese exporters and producers received a final subsidy rate of 19.84%.

India's Goodluck Industries received a final subsidy rate of 8.02% and Tube Investments of India got a 42.6% rate. The "all other" rate for India was established at 22.41%.

The ITC also made a negative finding concerning critical circumstances with regard to imports from China, so they will not be subject to retroactive countervailing duties.

US mechanical tube imports from these two countries are subject to antidumping investigations by Commerce and the ITC as well (see other story).

-- Tom Balcerek


Weekly scrap wrap: US and Baltic quotes diverge in TurkeyThe global scrap market appeared quiet amid the holiday season in the week to Friday, January 5. But in Turkey there was a definite tension amid bullish sellers and reticent buyers.

Turkey removed its import duty on rebar, which spooked mills and forced them to remain out of the market despite some sources thinking they would be back with a bang after the New Year festivities.

But sellers in the US were very bullish as severe winter conditions and a warming product market lit a fire beneath the domestic settlement negotiations; the buy-week quickly blew past the $20-$30/lt rise that had some expected, and looked likely to finalize around $30-$40/mt.

A US seller was heard offering at $385/mt CFR for HMS I/II (80:20) Friday, and reportedly was happy to settle around $380/mt CFR. Others were holding out for $390-$400/mt CFR as the wintry weather and domestic market trajectory meant there was little incentive to sell.

Indeed, one USEC merchant was reportedly asking for a delay on a cargo previously booked as it was struggling to collect and ship the tons amid the severe weather.

Baltic sellers were closer to $378-$380/mt CFR in their expectations, though some sellers were offering at $375/mt CFR spooked by softening Chinese prices and Turkish mills’ seeming reluctance to book. A Baltic merchant rejected a $370/mt bid, according to one buyer, but there was a sense they were keener to sell than their stateside counterparts.

Just before the 1630 timestamp Friday, one source reported a premium Scandinavian merchant selling 80:20 at $375/mt CFR Samsun, which would equate to $372-$373/mt CFR given costlier freight into the port compared to Turkey’s other scrap import hubs.

S&P Global Platts assessed Turkish imports of premium deepsea HMS 1/2 (80:20) at $373.50/mt CFR Friday, up $2/mt on day and $3/mt on week.

In Asia, Japanese scrap export prices remained quiet due to the holiday season in Japan. Most players are expected to fully return to business after January 9, trading sources in Tokyo said. S&P Global Platts assessed Japanese H2 grade ferrous scrap for export at Yen 36,500-Yen 37,000/mt ($325-$329/mt) FOB Tokyo Bay Wednesday, unchanged from the previous week.

While the Asian bulk HMS market also remained quiet during the week with many market participants still on holidays, the East Asian containerized HMS market edged up due to higher offer and booking prices, regional trading sources said.

Some bookings for containerized HMS I/II 80:20 were made at around $350/mt CFR Taiwan, Taiwan-based trading sources said. Taiwanese mills were receiving offers ranging from $350-$365/mt this week, sources said.S&P Global Platts assessed the East Asian bulk HMS I/II 80:20 scrap price at $390/mt CFR this week, unchanged from the previous week while increased the East Asian weekly containerized HMS I/II 80:20 scrap price by $5/mt to $350/mt CFR Taiwan.

-- Staff

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Platts TSI US HRC assessment set at $654.50/st[related articles] [print] [back to top]

Platts TSI US CRC assessment calculated at $834.50/st [related articles] [print] [back to top]

ArcelorMittal ups the ante on US sheet price increasesArcelorMittal is moving to establish new base prices for its sheet products at significantly higher levels than recent sales.

The steelmaker is targeting a $720/st minimum base price for hot-rolled coil, while raising cold-rolled coil and hot-dip galvanized sheet (substrate) prices to $900/st, ex-works.

ArcelorMittal's new base prices follow domestic price increases of $40/st by Nucor, NLMK, US Steel and AK Steel earlier in the first week of January. Those price hikes target transaction prices of roughly $700/st for HRC and $880/st for CRC.

On Friday, the S&P Global Platts daily HRC and CRC price assessments were calculated at $654.50/st and $834.50/st, respectively (see other story).



Cold-rolled coil import prices get boost in US marketImport offers for cold-rolled coil into the US jumped on Friday as aggressive Russian offers have subsided and domestic and international prices continue to rise.

The S&P Global Platts daily CRC import price increased by $22.50/st to $690-$715/st CIF Houston following higher Turkish and South Korean prices, while hot-rolled coil import prices stayed unchanged at $575-$595/st CIF Houston.

Multiple market sources confirmed the absence of new Severstal offers, which was the most aggressively priced material last year.

Some Turkish material was heard to be available for May arrival at $740/st into the Great Lakes region on a delivered basis. Also, South Korean CRC in limited quantities was available for around $715/st on a delivered basis into the upper-Midwest.

Turkish CRC prices to the East Coast also continue to rise with recent transactions reaching as high as $770-$780/st landed, according to one trader. The CRC prices are up $80-$90/st over the past month.

A market participant is seeing a bounce back in the CRC spot market, adding that many buyers did not expect the domestic uptick to be as potent as some in the industry had forecast. Buyers had been in a holding pattern with the availability of lower priced foreign sheet, but then “suddenly" the advantageous import alternatives domestic buyers assumed would be there, no longer were, he said.

The higher import offers are coming as US mills continue to look to raise domestic prices. ArcelorMIttal late on Friday moved to increase its CRC and hot-dip galvanized (substrate) base prices to $900/st, while targeting $720/st for HRC (see other story).

One buyer said he saw one domestic mill's HRC offer prices increase by $80/st over the past week.



CMC, SDI, Gerdau follow Nucor with $40 rebar price hikesCommercial Metals Co., Steel Dynamics Inc., and Gerdau Long Steel North America are all raising prices on rebar $40/st, according to letters sent to customers Friday morning.

The increase announcements follow a $40/st hike by Nucor on Thursday evening.

The latest round of increases was expected, as scrap prices continue to rise and prices on import offers remain high.

As the January US ferrous scrap buy week unfolded, prime grades were moving up $20/lt while cut and shred grades were moving up $30/lt, with some bullish sentiment already circulating for February (see other story).

CMC, SDI and Gerdau's increases are all effective with new orders on January 5. SDI will price-protect orders shipped through January 19, while CMC and Gerdau will protect prices on orders shipped by January 20.

-- Joe Eckelman

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US won't sunset duties on tube imports from 7 countriesThe US International Trade Commission late last week determined that revoking the existing countervailing and antidumping duty orders on imports of circular welded pipe and tube from seven counties would likely to lead to continuation or recurrence of material injury within a reasonably foreseeable time.

As a result of the ITC's affirmative determinations, AD and CV duties on imports from from Brazil, India, Korea, Mexico, Taiwan, Thailand and Turkey will remain in place.

The ITC determinations were made after duty reviews required by the Uruguay Round Agreements Act, which mandates that duties expire, or "sunset," after five years unless there is proof that injury from the subject materials would likely continue or return.

-- Tom Balcerek


US amends duties on mechanical tube from IndiaThe US Department of Commerce is amending its preliminary antidumping duty order on imports of cold-drawn mechanical tubing from India.

Acting on a request by US petitioners, Commerce is correcting a significant ministerial error regarding certain grades reported by one of the mandatory respondents, Goodluck India Ltd. The correction raises Goodluck's AD margin to 4.02% from 0.0% - the original preliminary determination issued by Commerce in mid-November.

Goodluck also submitted a ministerial error claim that Commerce incorrectly reclassified certain grades reported by Goodluck for the preliminary determination, but Commerce denied the allegation.

Goodluck was one of two Indian exporters selected as mandatory respondents in the investigation. The other company, Tube Products of India Ltd., got a 7.57% preliminary margin, which remains intact.

However, the increase in Goodluck's margin affects the "all other" rate for non-selected exporters, as it is derived from averaging the margins of the selected exporters, Goodluck and TPI. The new weighted average margin for all other Indian exporters is 5.80%, down from 7.57%.

These adjustments are retroactive to November 22, 2017, when the preliminary determinations were published in the Federal Register.

-- Tom Balcerek


US administrative review ups Toscelik's OCTG dutyAfter an administrative review the US Commerce Department increased the antidumping margin on oil country tubular goods from Turkey's Toscelik from a September preliminary rate of 0.00% to a final rate of 9.13%.

The review covered 12 months of imports ending August 31, 2016. The new duty is retroactive to that period.

Commerce, addressing changes since the preliminary results, said: "Based on comments received from interested parties and further review of the record, Commerce capped the duty-drawback adjustment added to US price. This revision changed the weighted-average dumping margin results for (Toscelik), the sole company subject to this review."

-- Tom Balcerek


Canada's rig count bounces back following steep fallAfter falling by 74 in the prior count, the number of active rigs in Canada saw a partial rebound last week, according to energy services firm Baker Hughes.

The number of active rigs in Canada increased by 38 to 174 during the week ended January 5. Rigs geared for oil production were up by 36, while rigs geared for gas production increased by two. Year over year Canada's total rig count was down by 31.

The US rig count fell by five on week to 924, up 259 year over year. Rigs geared for oil production were down by five, while rigs geared for gas production were unchanged week on week.

-- Justine Coyne


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US mills finalizing January scrap buys at up $20-$30/ltThe January US scrap market played out very much like the December market with prime scrap price increases lagging those of other grades and mills unable to go long and buy additional scrap as winter weather took center stage in discussions.

Mills continued to be buyers on Friday at up $20/lt for prime grades and up $30/lt for obsolete grades. In December, primes were up $20/lt and obsoletes began up $30/lt and eventually moved to $40/lt, something that did not transpire in January as most mills capped increases at up $30/lt.

“No mills are turning away tons yet, but they will not pay additional at the moment,” one Midwest broker said. “I don’t think mills are getting everything that they need right now.”

For the most part mills were disciplined buyers and scrap dealers were disciplined sellers. Mills announced $40/st price increases on sheet and rebar this week and had hoped not to give it all away on the cost side with scrap buys in January. Dealers were cautious about over-selling with the prospect of weather-related shipment delays this month and ever-growing confidence in February pricing potential.

“They got away with [up $20-$30] but I think mills will come up short on shred and cuts,” one supplier said. “We had one mill that did not want to buy any primes from us and today they called us back and asked if we had any tons to sell, they will take them now.”

There were varying levels of demand for prime region to region. One seller could not move all his prime scrap; another indicated that a mill was accepting all the prime he and other suppliers had.

“We ended up turning [prime] tons away at the end,” one mill buyer said. “I get a sense this is more a result of manufacturing output than it is dealers holding back tons from December.”

Ohio Valley mills paid around $340/lt for HMS 1, $350/lt for plate & structural and $350/lt for shredded scrap on a delivered basis, up $30/lt from December pricing.

Up $20/lt on primes and up $30/lt on obsoletes was the trend throughout most the country, even in areas not impacted by weather. Southeast mills paid around $340-$355/lt for shredded scrap, $335/lt for HMS 1, $345-$350/lt for plate & structural and $375-$380/lt for No. 1 busheling, on a delivered basis.

S&P Global Platts' volume-weighted daily shredded scrap assessment was $340.75/lt delivered Midwest mill on Wednesday, up $6/lt on day and up $31.75/lt from the conclusion of the December buy week. Platts assessed No. 1 busheling at $382.50/lt. The $41.75/lt gap between the two grades is the smallest since February 2017.

“As we wrap up January, I am a little split about February,” one Northeast scrap supplier said. “February is usually a down month, but unless it warms up and stays warmer, flows will remain hampered. Demand does not seem to be weakening either here or overseas. And we are probably at peak supply for the foreseeable future of prime grades because dealers had been holding them and will not replenish them as quickly as they ship them.”

-- Nicholas Tolomeo


Asia HRC market stable despite Chinese price fallThe hot rolled coil market in Asia remained quiet Friday as offers were high but sentiment weakened.

S&P Global Platts assessed SS400 HRC 3mm thick at $571-$573/mt FOB China, with the midpoint of $572/mt staying flat for 13 consecutive business days. The same grade coil was assessed at $581-$583/mt CFR Southeast Asia, also unchanged.

Among Shanghai dealers, Platts assessed Q235 5.5 mm HRC at Yuan 4,240-4,260/mt ($653-656/mt) ex-stock with 17% VAT Friday, implying a midpoint of Yuan 4,250/mt, down Yuan 50/mt from Thursday.

On the Shanghai Futures Exchange, the most active HRC contract – that for May delivery – closed at Yuan 3,842/mt Friday, down Yuan 35/mt day on day.

Offers for Chinese-origin HRC were heard in the range of $585-$610/mt FOB China Friday, but overseas customers were only willing to accept a price equivalent to $570/mt FOB China for SS400 grade.

Buying interest was even scarcer for SAE1006 grade due to slow sales of pipe and galvanized coils across the Asean region, a source told Platts. Also, the domestic market in China fell towards the end of the December 31 week, which made buyers even more cautious, a Korean trader remarked.

In Vietnam, prices picked up slightly during the week but the climb was seen as unsustainable should Russian-origin HRC – booked earlier at the low price of around $545-550/mt CFR Vietnam for February shipment – be delivered as agreed.

The spread between SAE1006 and SS400 stayed at $7/mt for Chinese-origin HRC, Platts notes.

-- Anh Nghiem and David He


Asian billet continues to drop on lower offersBillet prices in Asia were down Friday with lower buying indications after traders and re-rollers saw

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Chinese domestic prices continue to soften.

Offers in East Asia remained stable at around $540-$550/mt CFR, but buying indications dropped sharply by $10/mt to $520/mt CFR. Market watchers said this was in response to Tangshan billet prices dropping Yuan 80/mt ($12/mt) over the December 31 week.

Offers remained at $540/mt CFR, said an eastern China trader, so the tradable level would not be low. A Manila-based trader agreed saying offers from various origins remained at $540/mt CFR, but buying indications were only $520/mt CFR.

Moreover, a trader said tradeable level in Manila was below $530/mt CFR as offers from the Chinese market were shrinking. Chinese billets were offered at $525-530/mt Friday, down by $5-10/mt on week, said two other traders.

In Indonesia, an offer for Q275 Indian billet of 120mm was heard at $550/mt CFR Indonesia for January-February shipment by a Hong Kong based trader, but the indications were only at $520/mt CFR.

In Thailand, a trader offered at $520/mt CFR for 30,000mt of Iran billet but only received at bid at $520/mt CFR for 10,000mt.

A mill source from Vietnam said mill offers had dropped by $5-10/mt to $525/mt FOB Vietnam for February shipment during the December 31 week.

On Friday, S&P Global Platts decreased its weekly CFR East Asia 120/130mm billet assessment to $528-529/mt CFR. The implied midpoint of $528.5/mt was $4.5/mt down on the previous week.

-- Joy Zhuo


Asian stainless CRC prices stay flatS&P Global Platts assessed Asian prices of 304 2mm 2B stainless cold rolled coil sourced from Taiwan and South Korea flat during the first week of this year at $2,175/mt CFR East and Southeast Asian ports.

Market activity remained slow due to the holidays, but prices were supported by firm steelmaker and nickel prices, along with a stable Chinese domestic market, sources said.

Taiwanese mills were trying to fulfill their order books by opting for competitive pricing, said a regional trader. South Korean prices remained high and only the Taiwanese materials could be deemed relatively competitive in the region compared with Chinese products, he said.

In China last week, export traders were offering 304 CRC for immediate delivery at $2,200/mt FOB, but attracting buyers with these prices was hard, said a southern China trader. Currently, business for 430 materials was more active, while sales of 304 CRC were slow as most buyers still preferred to wait-and-see, he said.

The official nickel cash price on the London Metal Exchange settled at $12,615/mt on January 4, up $520/mt from one week earlier.

--Dai Yuelin


Indian mills reap the benefits of declining importsIndian mills are benefiting from the decline in import competition and rising global prices, sources told S&P Global Platts Friday.

During November, India’s overall monthly steel imports inched up by a comparatively small 2.7% on-year to 615,000 mt, according to recent data published by the Joint Plant Committee. The increase was far more sedate than the 12.3% on-year jump witnessed in October to 599,000 mt.

"Lower imports have helped Indian mills raise domestic steel sales,” according to an official with state-owned Steel Authority of India Limited in Delhi.

For instance, overall hot rolled coil sales for SAIL during December increased by 6% from December 2016 and by 8% on-month to 260,000 mt, the official confirmed, saying the pickup in business was a direct result of the dip in HRC imports.

During November, monthly HRC imports fell by 40% on-year to 109,540 mt, followed the 16% decline during October to 93,540 mt, the JPC report showed.

The rise global steel prices has made it possible for such imports to breach the minimum reference price stipulated by New Delhi, below which an anti-dumping duty is levied, a Mumbai trader explained. However, the addition of import tariffs makes imported material unattractive for Indian buyers.

For instance, the S&P Global Platts' price for China-origin SS400 hot rolled coil on January 2 was assessed at $572/mt FOB China. With the inclusion of the 12.5% import duty and about $15/mt of port handling charges, this would translate to a landed price in India of $658/mt, which is higher than prevailing domestic prices.

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The S&P Global Platts’ weekly assessment of domestic Indian HRC prices of similar grade prevailed at $653/mt on January 2.

-- Charlotte Rao


Turkish HRC, HDG prices push up despite sluggish demandDespite continued sluggish domestic and export demand for coated coils, some Turkish producers raised coated list prices Friday on higher offer prices from domestic hot-rolled coil mills for March rollings.

One major producer began offering 0.5mm hot-dipped galvanized at $790-$800/mt ex-works to the domestic and export markets Friday, $10/mt higher on week, while other producers' 0.5mm HDG list prices were in a range of $800-$815/mt ex-works. Turkish mills' HDG export offers were around $10-$15/mt lower, as New Year slackness continued to dominate Turkey's main export markets, particularly Europe.

Turkish HRC producers' domestic offer prices for March rollings were $10/mt higher on week at $610-$630/mt ex-works Friday, while HRC export offer prices exceeded $600/mt ex-works. However, no notable deals were heard in the last 10 days, while import sources were out of the market since the last week of December.

"We pulled up our list prices today, due to domestic mills' stronger HRC offer prices. One producer began to offer HRC to the domestic market at as high as $630/mt ex-works. Mills' HRC offer prices for pipe-making quality also reached $610-$615/mt ex-works," one coated coil producer told S&P Global Platts.

However, both domestic and export demand remained limited and no notable deals have been heard since the last week of December, sources said.

"The market will probably be more lively as of next week. European producers hiked their prices before the New Year holidays," a major trader said. "If the market will accept these rises, this will also support Turkish mills' HRC export prices to Europe. Developments in the Chinese market will also have an effect in global price direction."

The direction of imported scrap pricing will also determine mills' finished product quotes in the coming weeks, a service center manager said.

-- Cenk Can


EU HRC index rationaleThe S&P Global Platts TSI hot-rolled coil index rose Eur2/mt Friday to Eur536.50/mt ($645.62/mt) ex-works Ruhr.

A west European steelmaker noted sales achieved at Eur550-560/mt and insisted the company would no longer accept sales at lower levels.

However, much of the market remained on holiday until Monday with buy-side sources in Germany and the Benelux so far unwilling to pay more than Eur535-540/mt ex-works Ruhr.

Most western mills were heard to have withdrawn offers from the spot market. Earlier offers from ArcelorMittal were at Eur580/mt, while other mills were still to announce new offers, having previously been around Eur550-560/mt.

No data was excluded from the calculation.

The above rationale applies to the Platts TSI Northwest European HRC index, with the associated market data code: STHRE00


Turkey rebar quotes to US climb more than for other marketsTurkish rebar offers jumped $20/mt for the US market Friday, to $640/mt CIF, following substantial price hikes announced by several US mills. For other markets, Turkish quotes edged up only slightly, about $5/mt, in the first week of the New Year, but buyers appeared to be in no rush to place new orders.

A European trader cited two offers at $575/mt and $585/mt FOB Turkey, which were in line with those seen by other market observers. "I don't think they will be workable next week (January 8-12) either. I believe they are currently peaking," the trader said.

A number of sources noted that Turkish domestic demand has cooled in January, but it continues to generate better returns than the export market. A trader source noted that the quieter domestic market is standard this time of year. "This is typical export season. [The] domestic market will come back for April," he said.

Traders insisted on paying a maximum of $570/mt FOB Turkey for February rebar shipments, in order to make decent margins. A number of mill sources rejected this level, implying they were firm at $575/mt FOB and higher, despite being able to sell only small volumes at that price.

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One trader believed $570/mt FOB was possible, but for larger cargoes. And such cargoes were possible only for shipment to the Far East. Offers to Asian markets were regularly heard during the week.

On Friday, S&P Global Platts assessed its daily rebar export price at $572.50/mt FOB (range $570-$575/mt), up $2.50/mt on the previous day.

--Wojtek Laskowski


Turkish mill expect flat scrap/rebar pricingTurkish mills were targeting stable scrap costs in their next bookings amid softer domestic and export steel demand, one steelmaker said Friday.

"Buyers in our main rebar export markets currently resisting our rebar offers. Demand from Southeast Asia, which supported our rebar export volumes in recent months, also slowed down in recent weeks," he said.

"Our rebar export offers are currently at $580/mt FOB, but, counterbids are notably lower. Latest export sales were generally made lower at $570-575/mt FOB, while local demand also slowed down and prices began to soften in the domestic retail market," he said.

As a result mills were keen to stop scrap prices from spiraling, and were withholding purchases. “However due to winter conditions, scrap suppliers' offers are strong," the source noted.

Although some Turkish mills pulled down lira-denominated rebar list prices throughout the week, domestic prices were relatively strong on a dollar basis at $585-$590/mt ex-works Friday, as the Turkish lira has been appreciating gradually against dollar since the last week of December.

The Turkish lira was trading at TRY 3.74/$1 at 1pm Turkish time Friday, compared to the $3.76/$1 range in the previous day.

This appreciation, however, pulled down stockists' lira-denominated prices further Friday. In Iskenderun, prices dipped as low as 2,580/mt (including 18% VAT), while prices in Istanbul also slipped to $2620-2640/mt, sources said.

-- Cenk Can


Van Merksteijn finds land for its steelmaking facilitiesVan Merksteijn International (VMI), one of Europe’s largest wire rod processors, has agreed land for its own steelmaking facilities, Kris Van Ginderdeuren, group commercial director, confirmed to S&P Global Platts Friday.

Following the completion of a feasibility test, agreements on the land position were signed on Friday 22 December; VMI is using a 28-hectare site in the seaport area of Eemshaven, North Groningen, in the Netherlands.

“We have decided to make the agreement with the port of Eeemshaven, which has good water and rail connection for internal transportation,” Van Ginderdeuren said.

The company is in talks with various plant makers, aiming to have the plant producing in 2020.

VMI, headquatered in Almelo, Netherlands, is taking its first step towards upstream vertical integration with the building of its own EAF, billet caster and rolling mill, amid limited wire rod supply in Europe and high transportation prices for imported rod.

On completion, the project will be the first new greenfield steelworks to be built in western Europe for several decades, according to some commentators.

“We see no other option than to become partially independent in our sourcing of steel,” Van Ginderdeuren said.

VMI has processing plants for the production of reinforcement, fencing products and galvanized wires in the Netherlands, Belgium and France and it supplies finished products to more than 1,000 customers.

-- Erica Sesay


Turkey rebar assessment rationale S&P Global Platts assessed Turkish export rebar at $572.50/mt FOB Turkey Friday, $2.50/mt up on the previous day.

Platts increased its assessment as the level $570/mt FOB was said to be possible only for large cargoes, outside of the 2,000-3,000 mt lot size detailed in Platts' assessment methodology, a trader said.

Another source said traders insisted on paying a maximum of $570/mt FOB, but producers were

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reluctant to accept bids at this level. Mill sources continued to offer $575/mt FOB and higher, Platts heard. The assessment is the midpoint between the highest bids and lowest offers heard on Friday.

No data was excluded from the assessment.

The above rationale applies to Platts' daily Turkish rebar assessment, with the associated market data code: STCBM00


German steel construction to remain high this yearPlant and warehouse construction is expected to be a driving factor for German structural steel production this year, according to the German association of steel fabricators, Bauforumstahl.

The association reiterated its forecast that steel construction production will remain largely stable at 2.1 million mt this year, the highest figure among European countries said Bauforumstahl. Strong demand is also predicted to come from light steel constructions in housing as well as bridge construction.

A sentiment survey among German steel construction companies showed 83% of firms say the current market situation is "good," expecting 2017 market levels to continue. As reported, the German government released more funds for infrastructure projects, which sources told Platts are likely to benefit domestic companies.

Preliminary figures for 2017 showed production amounting to 2.1 million mt, mainly owing to a good second half of 2017 resulting in high capacity utilization.

German construction association Das Deutsche Baugewerbe said Q4 last year saw high activity despite cycles of heavy rain in November and said the continued positive business will increase investment expenditure. As reported, Germany's purchasing managers index was among the highest in the EU at 63.3 in 2017.

-- Laura Varriale


Recovery in Turkey's billet, slab imports continuesTurkey's imports of semi-finished steel continued to rise for the second-consecutive month in November, to 450,000 mt, up 36% on year, according to the latest Turkish Statistical Institute (TUIK) data sent to S&P Global Platts.

Industry sources attributed the rise in billet and slab imports in the last months of 2017 mostly to higher domestic finished steel demand in Turkey, which also supported domestic steel output. Turkey's own billet production rose 10.8% to 23.5 million mt in the 11-month period, while slab output jumped by 17% to 10.7 million mt, the latest data showed.

Turkey's finished product output also increased 5% to 35.6 million mt in January-November, while finished product consumption reached 32.9 million mt, up 4% on year, according to the latest Turkish Steel Producers' Association (TCUD) data published Thursday.

CIS countries remained Turkey's largest semi-finished product suppliers in November. Russia sent 161,750 mt of semis to Turkey in November, most of them billet, while semis imports from Ukraine totaled 55,100 mt. Semi-finished imports from these two countries accounted for 48% of Turkey's total semi-product imports in that month.

The steepest rise in semis imports during November was seen in Turkey's imports from Brazil. Turkey imported 215,000 mt of semi products from Brazil, most of them slab, in November, sharply higher than the roughly 1,000 mt imported in the same month of 2017, the latest TUIK data showed.

-- Cenk Can


CIS billet assessment rationaleS&P Global Platts assessed CIS export billet at $515/mt FOB Black Sea Friday, stable on Thursday.

The market saw limited activity due to the holiday season in Russia. Offers heard in the market were similar to levels reported in late December, at $520-$525/mt FOB Black Sea. No notable transactions were reported.

No data was excluded from the assessment.

This rationale relates to Platts' FOB Black Sea billet assessment, with the associated market data code: STBLB00


LatAm Jan-Nov steel imports from China slip 10% on yearLatin America imported 6.3 million mt of steel products from China in January-November 2017, down 10% from the same period in 2016, regional steel industry association Alacero data showed Friday.

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Of the total, 5.6 million mt was finished steel products and the remainder, 686,000 mt, was steel derivatives products, the association said.

Alacero data showed the main destinations for Chinese steel (finished and steel derivatives) in Latin America for these eleven months were Central America, which received 1.3 million mt (20% of the region); Chile, 1.2 million mt (19%); and Peru, 869,000 mt (14%).

The countries that increased their imports of Chinese steel (in percentage terms) compared with the previous year were Ecuador (22%), Dominican Republic (20%) and Chile (5%).

Countries that reduced their imports of Chinese steel products compared with a the same period in 2016 were Venezuela (down 55%), Cuba (down 51%) and Central America (down 26%).

Latin America's flat steel products imports from China in the period was4.3 million mt, or 68% of total steel exports to the region. Of that total, alloyed sheet and coils made up 1.2 million mt, followed by hot dip galvanized sheet at 1 million mt and cold-rolled coil at 771,000 mt.

Long steel products exports to Latin America reached 18% of the total, or 1.1 million mt in the period, of which 548,000 mt was wire rod and 462,000 mt was rebar.

Seamless tubes accounted for 3% of total imports with 218,000 mt in volume. End-user products represented 11% of imports at 686,000 mt, with welded tubes comprising 555,000 mt and wire 131,000 mt.

-- Bruno Martins


Brazil's auto sales, exports fuel industry growth in 2017Lower interest rates and the end of a brutal recession pushed Brazil's auto industry to its best performance in five years in 2017, with motor vehicle sales, exports and production all posting gains, according to data released Friday by the National Motor Vehicle Manufacturers Association, or Anfavea.

Dealers sold 1.99 million cars, light-commercial vehicles, trucks and buses built in Brazil in 2017, an advance of 12.3% over the 1.77 million vehicles sold in 2016, Anfavea said.

Dealers also sold 186,858 vehicles in December, an increase of 2.3% from the 182,631 vehicles sold in November and up 4.5% from the 178,828 vehicles sold in December 2016.

Consumers purchased 244,109 imported vehicles in 2017, a decrease of 10.7% from the 273,457 imported vehicles sold in 2016, according to the association.

The full-year sales data, however, underscored the impact of Brazil's improving economy on the downtrodden industry.

Latin America's largest economy started to emerge from nearly four years of recession in the second half of 2017, with record-low interest rates implemented by the Brazilian Central Bank and increased consumer confidence combining to lure potential auto buyers back to showroom floors. Expectations for a continued economic recovery, despite uncertainties related to Brazil's upcoming presidential elections, have Anfavea confident the year-end surge with continue in 2018, Anfavea President Antonio Megale said.

"We're starting a politically complex year, but with a reasonable level of optimism," Megale said.

Anfavea expects total vehicle sales to rise 13.2% in 2018 to a total of 2.502 million vehicles, the group said.

While the weaker Brazilian Real undercut sales of imported vehicles, the currency's performance during 2017 had the opposite effect on exported vehicles by making them cheaper on international markets. Brazil also completed several bilateral trade agreements that boosted export sales during the year and should yield additional growth in overseas sales to Argentina, Chile, Colombia and Mexico, according to Anfavea.

Brazilian automakers shipped a record 762,033 vehicles overseas in 2017, a 46.5% advance from the 520,137 vehicles sold abroad in 2016. The 2017 tally easily topped the previous export record of 724,163 vehicles set in 2005, Anfavea said.

The country shipped 61,140 vehicles abroad in December, down 16.3% from the 73,073 vehicles sold overseas in November. December's export sales were also 2.6% less than the 62,792 units sold abroad in December 2016.

Anfavea expects vehicle exports to reach 800,000 vehicles in 2018, an increase of 5.0% from last year's mark.

Strong domestic and international sales also sparked a recovery in production, which allowed automakers to restart and increase output from assembly lines that had been idled during the downturn, Anfavea said.

Brazilian automakers produced 2.699 million vehicles in 2017, an increase of 25.2% from the 2.156 million vehicles produced in 2016. December output, however, sank 14.2% to 213,707 vehicles when compared with the 249,075 vehicles produced in November.

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Anfavea forecast output of 3.05 million vehicles in 2018, an increase of 13.2% from 2017.

-- Priscilla Antunes


Brazilian pig iron export prices steady, sellers waitJanuary arrived with little talk regarding exports of Brazilian-origin basic pig iron, with no one in a hurry to sell, market participants said Friday.

S&P Global Platts assessed the Brazilian export basic pig iron stable at $350-$360/mt FOB Southeastern ports, with a midpoint of $355/mt. The last price change was on December 26, when the raw material was being priced at $340/mt.

Most of the contacted sources remain out on vacation, while the few that returned are still trying to understand the 2018 scenario.

Brazil's pig iron exports totaled 2.28 million mt in 2017, up 5% from 2016's 2.17 million mt, the Ministry of Development and Foreign Trade said.

Most of the exports -- 1 million mt -- went to the US at an average FOB price of $335/mt, followed by Netherlands with 345,554 mt at $356/mt FOB.

The most used port for transactions last year was Vitoria port in Espirito Santo state, with 831,622 mt, followed by Rio de Janeiro port at 752,653 mt.

Pig iron exports in December totaled 146,559 mt, down 31% from 212,831 mt a year ago and also down 39% from 239,979 mt in November.

-- Priscilla Antunes


Tunisia ups billet import taxA number of market participants reported Friday that the Tunisian government raised its import tax for billet to 30% from 20%, applicable to countries outside of the EU and the Arab League, S&P Global Platts heard.

The 30% duty is applied to imports the CIS, Brazil, India, Iran, China and many other countries. According to a Tunisian trader the import from Turkey stands at 27%. A few other trade sources also heard this information.

At the same time Tunisian re-rollers opposed higher import barriers for billet, and Were calling for changing billet classification to raw material, which would entail no import duty at all regardless of the country of origin. The trade source in Tunisia estimated the chances of such a move by the government at 60-70%. “HRC is considered as raw material for tube makers so why not billet? It makes no sense,” he commented. The decision is expected very soon, Platts heard.

-- Wojtek Laskowski


Iran's Hosco plans to double its capacity Iranian thin slab producer Hormozgan Steel Co (Hosco) plans to expand its capacity to 3 million mt/year from its current 1.5 million mt/year, according to domestic media reports quoting Farzad Arzani, the company's managing director.

Arzani was also quoted as saying a $400 million expansion plan has been finalized with a German company, but Hosco is still waiting to confirm project financing.

Some 832,000 mt of the company's output has been exported in the first 9 months of the Iranian year (April-December), accounting for 70% of total production and 13% more than during the same period last year.

Hosco expects to make a profit of IRR 3 trillion($83.14 million), which would offset the company's losses over the past five years. Hosco is an affiliate of Mobarakeh Steel Co (MSC).

--Reza Zaer


Iran's Mobarakeh Steel denies ESCO stake bidContrary to recent reports, Mobarakeh Steel Co (MSC) does not have any plans to purchase a stake in Esfahan Steel Co (ESCO) from the Iranian Social Security Organization (ISSO) -- Iran's largest pension fund, an MSC representative told S&P Global Platts.

The national steel industry pension fund is seeking to sell its equity stake in ESCO to the highest bidder, with a minimum price of IRR 4.411 trillion ($122.2 million), Platts learned from the Iran Privatization Organization (IPO). The shares will be sold on January 10 through an over-the-counter market in Tehran.

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Some 56% of ESCO belongs to ISSO and 16.75% to the national steel industry pension fund. The rest of the company's shares are owned by another fund and additional shareholders.

The Iranian pension funds have previously sought to sell their equity stakes in ESCO, but did not attract any acceptable bids. All pension funds in Iran are affiliated with the government.

Bourse 24, an Iranian website, recently quoted Ali Sarzaiem, deputy cooperatives minister for planning and financial affairs, saying the Iranian government was considering the ESCO share sale to MSC in order to reduce its ownership footprint and also due to the company's financial challenges. However, MSC's managing director refuted the contention.

"We will support and cooperate (with ESCO) for its growth and success, but currently have no plans to buy shares of the company," the ILNA news agency quoted Bahram Sobhani as saying.

-- Reza Zaer


Weekly coal wrap: Prices slip a touch in slack tradingThe Asia Pacific metallurgical coal market softened slightly towards the end of week amid sluggish trading after a stalemate between buyers and sellers early in the week.

S&P Global Platts assessed Premium Low Vol down $1/mt to $261.25/mt FOB Australia Friday on week, with CFR China prices flat at $231/mt CFR China.

Congestion was heard to be easing off Australia's key Dalrymple Bay Coal Terminal, though queues were building off Gladstone.

However, coal supplies globally continued to face disruption in the US, with the major coal terminal Dominion Terminal Associate port in US, Virginia, having declared force majeure Wednesday this week due to severe blizzard conditions preventing the loading of coals at usual rates.

While this was likely to impact European buyers the most -- with some impact on Indian or Northeast Asian mills who buy US coals -- some Asian sources said this may cause Europeans to start buying already limited Australian supply, causing prices to possibly spike. However, there was talk this may be a short term issue.

In China, buyers continued to show no interest in first tier coals. But one seller source said he expected the Chinese buyers to come back to the import market, in view of the domestic Chinese coal prices still being on the uptick, adding that he could easily see end users accepting $240/mt CFR China levels for premium low vol coals.

In the met coke segment, Chinese material softened after a month of consistent price hikes as mills' met coke inventories were largely full. Another reason is that some cokeries, mainly in Shanxi, were heard being allowed to increase production rates to produce LNG as a buy-product.

-- Staff


Weekly iron ore wrap: Market starts year on a high-noteThe seaborne iron ore market started the fresh year on a rising trend, amid bullish expectations for demand and still strong mill margins.

Platts assessed the 62% Fe Iron Ore Index at $77.10/dmt CFR North China Friday January 5, up 65 cents on day and $2.75/mt from a week ago.

Market participants expected Chinese end-users to start restocking ahead of the Lunar New Year and end of winter products cuts in March. At the same time, more letters of credit in the new financial year would also enable end-users to book some seaborne cargoes, market sources said.

Steel prices remained elevated, though rebar came under pressure from building stocks -- albeit still lower year-on-year -- amid wintry weather. The spot price of square billet in Tangshan was at Yuan 3,610/mt ($556.11/mt) ex-stock Tangshan Friday, down Yuan 20/mt day on day.

Despite the market's well publicized strength, some sources were starting to become wary of lower blast furnace utilization, with some running as low as 50%, and weaker construction activity.

Opinions on the lump market were also mixed. Some said consumption would be restricted by the pollution controls and high coke costs. But others believed lump prices would increase soon as it was at a historically low level and mills in northern China would resume full production by March, giving them room to purchase some February and March cargoes. Platts assessed the spot lump premium at $0.0920/dry mt unit Friday, $0.013/dmtu from a week ago.

-- Staff


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