Metal Expert

World Steel News > Issue 159 (3417), Thursday, August 17, 2023

Latest Contracts

MENA

Turkiye’s import scrap quotes mount further on multiple deals

Billet market moods uncertain in Turkiye despite heavy Kardemir sales

Export rebar prices move higher in Turkiye despite lack of sales

Turkish HRC producers test market with higher offers

North African long steel suppliers evaluate price trend

Saudi Arabia and Iraq strengthen business ties in steel sector

Asia

Steel futures marginally up, raw materials down on

looming output cuts, economic issues

Iron ore slightly down on Wednesday

Indian ferrous scrap import prices on rise

Contract prices for import scrap stabilize in Taiwan

Pakistani ferrous scrap imports slump by 43% in FY23

Hyundai Steel keeps selling assets in China

CIS

Coated steel imports to Ukraine at seasonal peak

IRC postpones start of production at Sutara field

In brief: ChMK posts loss in H1

In brief: Zaporizhstal ramps up pig iron production almost by one third

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Europe Green Steel Knowledge Base
ETS development
Benelux scrap jumps on new deal to Turkiye Low-price voluntary CO2 market
to scale up ahead of consolidation
German scrap falls less than expected (13.09.2022)
EU ETS reform slips on MEPs’
divergent ambitions (14.06.2022)
Salzgitter, HGK cooperate to develop sustainable waterway logistics
EU carbon market needs more
transparency, carbon allowances
need optimal price (07.06.2022)
Americas Standalone British ETS affects
steel industry as carbon prices
hold world record (10.05.2022)
Gerdau has Miguel Burnier iron ore reserves certified
Poland keeps insisting on carbon
market adjustments (03.05.2022)
Brazil’s steel production down by 5% in July EU ETS benchmarking becomes
powerful tool for emissions cuts
In brief: US zeroes AD on South Korean HRC (26.04.2022)
ETS outside EU yet to spur
emissions reduction process
(19.04.2022)
Windfall profit opportunities from
EU ETS to run low in new phase
(08.02.2022)
Energy sources
EU steelmakers not worried yet
about output, decarbonisation
plans despite gas concerns
(09.08.2022)
Transition to gas-based DRI-EAF
route in jeopardy as energy crisis
aggravates (12.07.2022)
Biogas gains higher rankings to
support energy transition for
industry (31.05.2022)
EU’s 300 billion energy security
plan set to unlock opportunities
for decarbonization (24.05.2022)
Coal remains strategic backup for
EU industry as energy sources dry
up (17.05.2022)
Germany’s stake on renewables
to support steel sector
transformation (12.04.2022)
CBAM prospects
Steel suppliers to EU have
different approach on CBAM
(01.03.2022)
CBAM requires a lot of
clarifications before coming into
force (22.02.2022)
Defining “green”
Green steel label taking
shape with taxonomy in place
(22.03.2022)
Controversial green label on gas,
nuclear turns vital for EU energy
safety in war times (09.03.2022)
CCUS implementation
CCUS projects still unpopular
in steel sector decarbonisation
(05.04.2022)
These articles are available as part
of Green Steel Weekly subscription.
Please contact your sales manager.

www.metalexpert.com © 2023 Metal Expert, World Steel News, August 17, 2023 2
 Latest Contracts

Latest Contracts
Contracts for steel products and raw materials
Commodity/specifications Origin/supplier Consumer Volume, t Price & delivery terms Details
Long products
Rebar Turkiye Turkiye 3,000 $585/t EXW done this week
Square billet
Square billet, S235JR, B420 Turkiye, Karadeniz Turkiye in total 80,000 $510‑520/t EXW done today
Square billet, 3sp Russia Philippines 20,000 $490/t CFR done late last week
Scrap
HMS 1&2 (80:20) Germany Turkiye 20,000 $364.5/t CFR September-October shipment
bonus Germany Turkiye 5,000 $384.5/t CFR September-October shipment
concluded this week,
shredded Europe India n/a $420/t CFR
containerized scrap
concluded this week,
shredded Europe India n/a $422‑425/t CFR
containerized scrap
HMS 1&2 (80:20) Netherlands Turkiye n/a $368.5/t CFR -
HMS 1&2 (80:20) Sweden Turkiye n/a $370/t CFR -
shredded, bonus Sweden Turkiye n/a $390/t CFR -
HMS 1&2 (90:10) USA Turkiye n/a $372/t CFR -
HMS 1&2 (80:20) USA Turkiye n/a $367/t CFR done on Monday
concluded this week,
HMS 1&2 (80:20) USA Taiwan n/a $365/t CFR
containerized scrap
Iron ore
Pilbara Blend fines, 61% Fe Australia China 170,000 $101.5/t CFR October 2‑11 laycan
BRBF, 62% Fe Brazil China 170,000 $106.7/t CFR September 13‑22 laycan
September 30 – October 9
Pilbara Blend fines, 62% Fe Australia China 170,000 unfixed
laycan

Daily price assessments for steel products and raw materials

Methodology
August 16, Daily
Commodity Country Currency, delivery term Metal Expert publishes the
2023 change
Iron ore, 62% Fe China $/t, CFR ex-Australia 103.5 –0.25 following types of prices:
Coking coal Australia $/t, FOB 255 0
Ferrous scrap, HMS 1&2
Turkey $/t, CFR ex-USA 373 +6 offer price – an offer from
(80:20)
Ferrous scrap, shredded Turkey $/t, CFR ex-USA 393 +6 a supplier but a deal has
Ferrous scrap, HMS 2 Japan JPY/t, FOB 50,000 0 not been signed at this
Ferrous scrap, HMS 1&2
Netherlands $/t, FOB 347 +6 level as of the time of
(75:25)
Ferrous scrap, HMS 1&2 publication;
Netherlands $/t, FOB 352 +6
(80:20)
RMB/t, EXW Tangshan, contract price – a trans-
Square billet, 150 mm China 3,510 0
incl. 13% VAT
action price confirmed on
Square billet, 150 mm China $/t, CFR ex-ASEAN 477 0
Square billet, 150 mm China $/t, CFR outside ASEAN 469 0 both seller’s and buyer’s
Square billet, 125‑150 mm CIS $/t, FOB 450 0 side;
Square billet, 125‑150 mm Turkey $/t, CFR 485 +10
Rebar, 12 mm Turkey $/t, EXW, еxcl. 18% VAT 580 0
price assessment – Metal
Rebar, 8‑32 mm Turkey $/t, FOB 578 +8
Rebar, 12, 32 mm Germany EUR/t, CPT 570 0 Expert’s estimate of a fair
Wire rod, 6.5 mm China $/t, FOB 545 0 price level for a possible
HRC, 3‑12 mm China $/t, FOB 570 0
transaction in current
HRC, 2 mm Vietnam $/t, CFR 585 0
HRC, base Germany EUR/t, EXW, еxcl. 19% VAT 645 0 market conditions.

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 Latest Contracts

Weekly price assessments for steel products and raw materials

Commodity Country Currency, delivery term August 11, 2023 W-o-w

Square billet, 130‑150 mm Iran $/t, FOB South ports 463 0
Square billet, 130‑150 mm Thailand $/t, CFR ex-Iran 498 –7
HRC, 2‑8 mm Russia $/t, FOB Black Sea 580 0
HRC, 1.9‑4 mm Turkey $/t, CFR ex-Russia 610 0

Major steel and raw materials futures in China

August 16,
Product Name of futures exchange Month of delivery Currency Daily change
2023
Rebar, 16‑25 mm Shanghai Futures Exchange October RMB/t 3,713 +19
Rebar, 16‑25 mm Shanghai Futures Exchange October $/t 517.79 +3.08
HRC, 3.5‑9.75 mm Shanghai Futures Exchange October RMB/t 3,926 +2
HRC, 3.5‑9.75 mm Shanghai Futures Exchange October $/t 545.38 –1.38
Iron ore, 62% Fe Dalian Commodity Exchange January RMB/t 738.5 –1.5
Iron ore, 62% Fe Dalian Commodity Exchange January $/t 102.59 –0.52
Coking coal Dalian Commodity Exchange January RMB/t 1,367 –33
Coking coal Dalian Commodity Exchange January $/t 189.9 –5.17
Note: $1 = RMB 7.1986

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 MENA

MENA
Turkiye’s import scrap quotes mount further on multiple deals
MENA / Scrap
Turkiye’s import scrap continues to strengthen on Wednesday amid at least five
deep-sea transactions closed at higher levels.
An Iskenderun-based steelmaker booked HMS 1&2 (80:20) at $368.5/t CFR from
the Netherlands.
A company from the Izmir region purchased a mixed lot from Germany, with
20,000 t of HMS 1&2 (80:20) at $364.5/t CFR and 5,000 t of bonus material at
$384.5/t CFR. The shipment of the batch is scheduled for September or October.
A Marmara-based mill made a contract for HMS 1&2 (80:20) at $370/t CFR, and for
shredded and bonus material at $390/t CFR with a Swedish scrap collector.
The same producer also bought HMS 1&2 (90:10) at $372/t CFR from a US
exporter.
At the beginning of the week, the above-mentioned steel mill from the Izmir region
came to terms with another US scrap collector for the procurement of HMS 1&2
(80:20) at $367/t CFR.
The negotiations are underway in the ferrous scrap segment. Major Turkish pro-
ducers started actively restocking with import scrap for September, having realised
that the suppliers will remain firm in their positions and there is no point in waiting
further. “Scrap flow is low, other scrap importers are on the market, so we could
rely either on stability in the short term or another increase,” a source told Metal
Expert.
Taking into account the levels fixed in the latest transactions, Metal Expert’s daily
price assessment for HMS 1&2 (80:20) from the US East Coast has moved to
$373/t CFR Turkiye on August 16 versus $367/t CFR a day ago.

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Billet market moods uncertain in Turkiye despite heavy Kardemir sales

MENA / Billet
The Turkish billet market continued to improve over the week. Today’s semis sales
by Kardemir inspired some market participants, who believe in further positive
developments on the back of costlier scrap and long steel segments. Others stay

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 MENA

quite sceptical about the current trend’s duration, given the insufficient rebar
demand.
Turkiye’s integrated steel producer Kardemir opened a new round of billet sales on
August 16. The company maintained the price for S235JR steel grade but pushed
up that for B420 grade by $5/t from the previous sales campaign at the begin-
ning of the month. As a result, 150x150 mm billet was available at $510/t EXW and
$520/t EXW respectively. In total, Kardemir sold 80,000 t of the product, a compa-
ny representative confirmed to Metal Expert. Sales were finalized in just one hour,
thanks to attractive price terms and certain “payment advantages,” according to
the sources. The buoyant trading after calmer weeks has spurred numerous ru-
mours about much higher tonnages traded. “Everyone takes the position for the
last quarter,” an insider mentioned.
Other Turkish billet suppliers voiced offers within $530‑535/t EXW versus
$510‑530/t EXW a week ago. However, some mills decided to step back from the
market till next week. “Prices are on the rise in Turkiye, with lots of scrap deals
coming. There is movement in the local market. Besides, foreign buyers request
offers for billet and longs, but some of them give ridiculous price expectations. So
we prefer to wait until next Monday in order to see when or where the scrap price
increase stops,” a billet producer told Metal Expert.
In the import segment, CIS billet was available at $480‑485/t CFR versus
$470‑480/t CFR earlier. Russian semis for prompt shipment could be bought at
$505/t CIF, though players admit that this is an excessive price. “Nobody will buy
Russian billet if the price is like this. Last week’s material was traded at $495/t CIF,
which is rather good compared with today’s one from Kardemir,” opined a source.
Despite today’s encouraging trading news, some billet suppliers stay cautious.
“There is some business activity in raw material and semis but not in long steel
products. We hope it will follow, but rebar should be at $600/t EXW according to
scrap,” a source closely familiar with the situation explained to Metal Expert. “It’s
early to say about improvement in steel products. We need a good demand both
locally and abroad. Otherwise, there will be a big price drop in the next 10 days.
Today it’s a good time to sell but not to purchase,” a source resumed.

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Export rebar prices move higher in Turkiye despite lack of sales

MENA / Long products
In the middle of the working week, Turkiye’s export rebar prices keep moving up-
wards amid higher import scrap quotes, while local ones stay firm. Buying interest
from both foreign and domestic clients remains unsatisfactory.
Turkish long steel producers increased their rebar offers for export by $15/t since
the end of last week and now the product is available abroad at $570‑585/t FOB
for September shipment. The move is related only to the higher production costs
as sales are limited so far. “Import scrap prices are going up daily, so the mills are
trying to adapt their finished steel product tags to the current market reality,” a
source told Metal Expert. “Even lower rebar prices from Turkiye were not accepted

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 MENA

by the foreign clients, so no demand improvement is seen now,” another source

added.
Domestic rebar prices from Turkish mills have been stable since Monday at
$570‑590/t EXW depending on the region. After a slight demand improvement at
the end of last week and the beginning of this one, it slowed down, hindering fur-
ther growth. Only small sales concluded within the mentioned range were heard. A
Marmara-based mill sold 3,000 t of rebar at $585/t EXW this week.
Turkish wire rod is available abroad at $595‑600/t FOB for September shipment
from the Marmara region.
Today, Kardemir opened sales for 5.5 mm SAE 1008‑1010 wire rod at $585/t EXW,
up by $10/t since the previous round of sales opened a week ago.

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Turkish HRC producers test market with higher offers

MENA / Flat Products
With the import scrap restocking campaign being accompanied by a price increase
in Turkiye, the local HRC producers decided to attempt bullish steps. The partic-
ipants are sceptical about the real success of the mills’ strategy, given the slow
customer activity along with more affordable imports available.
In mid-August, offers for domestic HRC moved to $660‑680/t EXW in Turkiye,
whereas earlier this month, the average level was $660/t EXW, Metal Expert learnt.
“Ready items are available at $700/t from some stockists,” a local source men-
tioned. “Turkish mills are citing costlier scrap and some export talks, but I doubt
that is enough for the revival of demand locally,” a market source opined.
Occasional talks with overseas buyers were reportedly fruitful for Turkish HRC
producers. Small tonnages changed hands with customers from neighbouring coun-
tries at $650/t FOB. In the meantime, the current price ideas of some mills have
moved up to $670/t FOB. Earlier this month, one of the Turkish suppliers agreed to
sell the product at $630/t CFR to the EU. “Turkish producers already sold substan-
tial quantities to Europe with the absence of some importers, they fulfilled their
quota,” said a source. “But I doubt whether there is any real big export surge from
Turkiye nowadays,” he added. “Under the circumstances, costlier scrap looks more
like an attempt to shake the market,” another source added.

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 MENA

On the imports side, just sporadic offers were heard this week. Chinese Q195
coils are available to Turkish customers within $580‑590/t CFR, “but no takers
yet as prices in China keep going down,” a local participant said. No firm offers
for Russian product were voiced this week. The producers are focusing mainly on
the local market, and the available tonnages are said to be narrowed due to the
planned maintenance.

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North African long steel suppliers evaluate price trend

MENA / Long products
North African suppliers announced their domestic and export offers, following the
global developments. Some mills prefer to stay away from trade for a while, seeing
an upward trend in the scrap segment.
Tosyali Algerie keeps domestic prices at a relatively stable level. Rebar and wire
rod are available at DZD 104,500/t ($647/t) EXW and DZD 111,000/t ($687/t) EXW
respectively. Algerian Qatari Steel (AQS) announced prices as well. The offers are
set at DZD 103,000/t ($637/t) EXW for rebar and DZD 110,800/t ($686/t) EXW for
wire rod.
AQS’s long steel for August-September readiness is available to foreign customers
as well. Rebar could be sourced at $539/t FOB Djen Djen port or Skikda and wire
rod at $541/t FOB. Billet is not on offer yet. The next possible offer may be voiced
in early September. The prices are valid until August 17, 2023.
Not all Egyptian suppliers have been active overseas. Some of them prefer to
evaluate prices now in light of scrap price increases. The rebar and wire rod from
the biggest steelmaker are available at $560‑570/t FOB for October shipment. The
products with September readiness were on offer at $565‑575/t FOB at the end of
July.
Prices in the dinars include 19% VAT, those in the US dollars do not. Currency rate:
$1 = DZD 135.8.

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Saudi Arabia and Iraq strengthen business ties in steel sector

MENA / Flat Products, Long products
The Kingdom of Saudi Arabia continues to use all opportunities to unlock export
potential. The recent export mission to Iraq may open new horizons to the Saudi
steel sector.
The Saudi Export Development Authority conducted a trade mission in Erbil, Iraq,
on August 15, 2023. The list of participants included 34 Saudi and 140 Iraqi compa-
nies across diverse sectors, including construction materials, steel, food products,
and packaging. The main goal is to open new opportunities and enable companies
to foster trade deals, boost exports, and explore new markets.

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 MENA

While Saudi steel suppliers have already shipped their products to Iraq, broader co-
operation may bring more business benefits for them. Metal Expert learnt through
investigation that well-known steelmakers, like Saudi Iron and Steel Company, Al
Ittefaq and Al Rajhi Steel, were present at the event. “Iraq is a very promising mar-
ket in terms of steel supply. The steel from the Kingdom is in high demand there,”
an insider commented.
Cooperation of this kind may become very fruitful for both parties. While Saudi
Arabia has an objective to raise the share of non-oil exports to at least 50% of
non-oil GDP by 2030, Iraq has an ambitious reconstruction and investment plan,
which requires at least $88.2 billion to rebuild the country after the war.

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 Asia

Asia
Steel futures marginally up, raw materials down on looming output cuts,
economic issues
Asia / Flat Products, Long products, Coal, Iron Ore
Chinese ferrous futures showed marginal multidirectional changes on Wednesday,
being under impact of both the talks about steel output cuts and the aggravating
economic problems in the country.
On August 16, the Shanghai Futures Exchange (SHFE) rebar and HRC futures
inched up by RMB 19/t ($2.6/t) and RMB 2/t ($0.3/t) respectively day-on-day. Iron
ore went slightly down by RMB 1.5/t ($0.2/t) on the Dalian Commodity Exchange
(DCE), while coking coal decreased more sharply – by RMB 33/t ($4.6/t) – due to
weaker demand from steelmakers.
Finished steel and raw materials futures moved in different directions since partic-
ipants were becoming increasingly focused on the information about steel produc-
tion cuts appearing in the market. “Some mills in China are scaling back production
after being told to comply with the governments’ plan not to exceed output this
year,” an insider told Metal Expert. A number of steelmakers in Shandong, Jiangsu
and Henan provinces have received the relevant notifications, market sources and
local media inform.
However, this news failed to provide strong support to steel prices since the coun-
try’s latest frustrating economic data made analysts more inclined to believe that
Beijing will not reach this year’s GDP growth target of 5%. On Tuesday, a major
bank Barclays lowered its forecast on China’s economy expansion in 2023 to 4.5%
from 4.9%. “It is increasingly possible that annual GDP growth this year will miss
the 5.0% mark,” said economists at Nomura Holdings.

Major steel and raw materials futures in China

$1 = RMB 7.1986

Products Exchange Delivery month Currency Price Change, d-o-d

Rebar, 16‑25 mm SHFE October RMB/t 3,713 +19
Rebar, 16‑25 mm SHFE October $/t 515.79 +2.64
HRC, 3.5‑9.75 mm SHFE October RMB/t 3,926 +2
HRC, 3.5‑9.75 mm SHFE October $/t 545.38 +0.28
Iron ore, 62% Fe DCE January RMB/t 738.5 –1.5
Iron ore, 62% Fe DCE January $/t 102.59 –0.21
Coking coal DCE January RMB/t 1,367 –33
Coking coal DCE January $/t 189.9 –4.58

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Iron ore slightly down on Wednesday

Asia / Iron Ore
Iron ore inched down on Wednesday, following a slight decrease in its futures.
Trading activity remained high, supported by restocking, though lowered from the

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 Asia

previous day. However, its sustainability is doubtful as the demand outlook has
worsened due to expected production cuts and economic concerns.
Australian iron ore fines 62% Fe went down by $0.25/t to $103.5/t CFR after al-
most the same decline on the DCE and a $0.44/t reduction on the SGX. The raw
material price posted only minor changes since Chinese steelmakers continued to
actively replenish their depleted inventories, purchasing at least 510,000 t of iron
ore on platforms during the day, according to insiders.
However, suppliers could not use the demand pickup for lifting prices since it was
not expected to be lasting. “With steel producers cutting the output of rebar and
other products, iron ore demand will not be strong for the rest of the year,” a trad-
ing source told Metal Expert. Participants say that more steel mills in a number of
Chinese provinces received unofficial orders to keep steel production at the 2022
level maximum.
Besides, the latest economic data made some banks and agencies, including
Barclays, revise down China’s GDP growth forecast for this year, impacting the iron
ore and steel demand outlook. New home prices in the country fell both on month
and year in July for the first time this year, the National Bureau of Statistics’ data
showed on Wednesday.

China: deals for iron ore, $/t

Products Fe, % Sale method Volume, t Laycan Price, CFR Qingdao Price, FOB
Pilbara Blend fines, Australia 61 COREX 170,000 October 2‑11 101.5 93.9
BRBF, Brazil 62 COREX 170,000 September 13‑22 106.7 85.85
Pilbara Blend fines, Australia 62 COREX 170,000 September 30 – October 9 unfixed -

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Indian ferrous scrap import prices on rise

Asia / Scrap
Indian scrap import prices went up for a third consecutive week. A few buyers
agreed to sign contracts to refill stocks for the post-monsoon season. However,
others remained cautious and stayed on the sidelines.
This week, a few deals for European shredded scrap were signed in India at $420/t
CFR and $422‑425/t CFR. Offers inched up by $5/t to $425‑430/t CFR. Prices
for European, Brazilian, US and West African HMS 1&2 (80:20) were reported at

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 Asia

$400‑405/t CFR, gaining $10‑15/t over a week. Some buyers believed $400/t CFR
was a workable level for the material.
P&S from the UK and Hong Kong was available at $440/t CFR, whereas European
and Australian busheling was priced at $450/t CFR, according to the market
sources.
The sentiment remained mixed. Some buyers agreed to purchase scrap at higher
prices to restock with the material for delivery in September-October shipment, the
first two months after the monsoon season ends. The ice broke between foreign
sellers and Turkish buyers as seven bulk deals at an increased price were reported
in Turkiye since last Friday, which then caused a $10‑20/t hike in rebar offers on
Monday. But after a slight steel demand improvement in Turkiye late last week and
the beginning of this week, it slowed down, hindering further growth. Other Indian
scrap buyers still wait and see until the actual demand for finished steel improves
in the major scrap-importing countries.

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Contract prices for import scrap stabilize in Taiwan

Asia / Scrap
After rising in the previous week, deal prices for imported scrap in Taiwan have
stabilized as buyers were not ready to go higher due to still weak fundamentals in
the finished products sector.
Sporadic deals for containerized HMS 1&2 (80:20) scrap of US origin are concluded
at $365/t CFR Taiwan, flat from Thursday last week. Offers for the same origin and
grade have also stabilized at $370‑375/t CFR, though sentiment in the international
scrap market has continued to strengthen. Imported scrap prices in Turkiye, India
and Pakistan increased by $5‑15/t on week, Metal Expert learnt.
The main factor that restrained Taiwanese producers from raising the bids for raw
materials was the absence of improvement in long products demand amid the weak
construction activity, sources say. However, sellers are determined to push scrap
prices up, taking into account the better terms in alternative markets. “Taiwanese
mills need to increase bids to $370‑375/t CFR to get the material,” an international
trader told Metal Expert.

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 Asia

Pakistani ferrous scrap imports slump by 43% in FY23

Asia / Scrap
Scrap imports plummeted in Pakistan last financial year as local steel factories
had to suspend production or reduce utilisation rates because a shortage of for-
eign currencies prevented them from procuring raw materials. The financial crunch
affected not only local steelmakers but also downstream industries.
In FY23 (July 1, 2022 – June 30, 2023), Pakistan imported 2.2 million t of scrap,
down by 43% year-on-year, according to the Ministry of Commerce of Pakistan.
Local steel manufacturers faced traditionally slow demand in the summer of 2022
due to the monsoon season and holidays. In December 2022, local importers start-
ed reporting problems with Letter of Credit opening due to an insufficient amount
of USD coming to the country. The situation only aggravated later last year as local
banks refused to open LCs to maintain foreign currency reserves. Buyers could
purchase the material through TT payment, but they had to do it through third
companies in the UAE or other countries. “Buying dollars is not so difficult outside
the bank. It is possible to give cash in rupees to some companies, which can pay
by TT through their Dubai office, but the exchange rate is around 15‑20% higher
than the official one,” a Pakistani insider told Metal Expert.
The problems with currency affected not only steelmakers but also downstream
industries, like auto manufacturers, who also could not secure the required feed-
stocks. Seeing weak domestic demand, local producers cut their production fur-
ther. “The situation has never been as bad as it is now. Some steel mills are al-
ready closed. Others are about to be closed,” a major Pakistani market player said
last year.
Moods slightly improved at the end of the year after Pakistan had reached an
agreement with the International Monetary Fund in late June 2023. At the same
time, uncertainty persists due to general elections in October 2023. Besides, high-
er costs of electricity, petrol and LNG coupled with the weak steel consumption
make local steelmakers keep a close eye on their production volumes.

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Hyundai Steel keeps selling assets in China

Asia / Flat Products
South Korean steelmaker Hyundai Steel continues to sell its car service centres in
China due to fierce competition with Chinese suppliers.

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 Asia

The producer has signed a memorandum of understanding to sell its China-based

subsidiary Chongqing Steel Service Center to a local company, according to the
mass media. The move followed the sale of Hyundai Steel’s car service centre in
Beijing in the previous quarter, Metal Expert reported. Both units are focused on
processing flats supplied to Hyundai Motor and Kia factories in China.
The divestment of the assets is based on the diminishing market share of Hyundai
Motor and its subsidiary Kia in the Chinese market. Vehicle sales from both car-
makers have been declining since 2016, Metal Expert learnt. Hyundai Steel has
three remaining loss-making service centres in Jiangsu, Tianjin and Suzhou, which
could be also put up for sale later.

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 CIS

CIS
Coated steel imports to Ukraine at seasonal peak
CIS / Flat Products
Ukraine’s coated steel imports were at a seasonal peak in June reaching the high-
est level since 2021. The steepest rise was registered in HDG imports due to higher
shipments from Turkey and Eastern European countries, while PPGI arrivals stayed
largely unchanged.
Ukraine imported a total of 34,700 t, up by 10% to 34,700 t month-on-month.
Specifically, HDG imports totalled 16,300 t in June, up 22%. Most volumes came
from Turkey – 11,200 t (up 22%). HDG supplies from Poland, Slovakia and Romania
rose, too. Deliveries of aluzinc-coated coils from South Korea to downstream pro-
ducers increased as well.
PPGI imports inched up by 2% to 18,400 t in June. Although dropping by 18%
to 8,200 t, supplies from China still prevailed in total imports. At the same time,
imports from Poland rose 1.6-fold to 6,100 t, but some of the volumes consisted of
Chinese material transported via the Baltic Sea ports. Deliveries from Slovakia in-
creased by 10% to 2,600 t. PPGI arrivals from other European countries and Turkey
did not exceed 500 t.
Market participants expect Ukraine’s coated steel imports to remain fairly high in
July. However, deliveries from Turkey are likely to decline a bit due to higher risks
of attacks on port infrastructure as well as reduced attractiveness of the product
due to the absence of extra discounts from suppliers. Besides, most importers
have suspended booking due to the approval of a duty on Chinese PPGI steel,
which will take effect in September. However, previously booked material will keep
arriving in the coming months, so PPGI imports from China are expected to drop
to the lowest level in Q4.
In H1, Ukraine imported 164,900 t of coated steel (almost twice as high as in the
same period last year), including 68,400 t of HDG steel (a 1.8-fold rise) and 96,500 t
of PPGI steel (a 2.1-fold rise), according to Metal Expert data.

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IRC postpones start of production at Sutara field

CIS / Iron Ore
IRC, iron ore miner in the Far East of Russia, postponed the start of the Sutara
field development due to adjustments to the project documentation. To maintain
production performance, the company will increase output at the second field.
IRC plans to start mining at the Sutara deposit site in Q1 2024, and start process-
ing ore by mid‑2024, whereas previously it intended to start commercial operation
of the site before the end of this year. The company was forced to reschedule “due
to certain deficiencies in the design documents discovered during the state expert
review and the need to implement corrections of the said design documents,” IRC
said in a semi-annual report. As a result, the company will need to obtain the ap-
proval of government authorities to start work.

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 CIS

The key goal of launching production at the new asset was to support output vol-
umes since the Kimkan field is depleted. Given the change in the schedule of work,
the company had to revise its plans. “The mining and production schedule for
H2 2023 and H1 2024 has been amended to increase ore supply from the Kimkan
deposit to compensate for the Sutara delay. With Kimkan increasing the ore supply
during the interim period, the revised timeline for the operation of the Sutara pit is
not expected to have material impact on the production schedule of the K&S,” the
company emphasizes.
The Sutara deposit is expected to replace the depleting volumes and reach the de-
sign 3.2 million tpy of Fe 65% concentrate. IRC is considering ramping up produc-
tion to 4.6 million t by upgrading the concentrator, but this will require a significant
improvement in logistical capabilities for deliveries to China, Metal Expert reported.

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In brief: ChMK posts loss in H1

CIS / Flat Products, Long products
ChMK, part of Mechel, received RUB 79.16 billion ($1.03 billion; the dollar equiv-
alent is based on the quarterly average currency rate data published by OECD:
$1 = RUB 76.086 for Q1-Q2 2022, $1 = RUB 76.8795 for Q1-Q2 2023; Russian
Financial Reporting Standarts) in revenues in H1 2023, 20% down year-on-year.
Exports generated RUB 11.69 billion ($0.15 billion), while revenues from activity
in the domestic market amounted to RUB 67.47 billion, down by 28% and 18%
respectively. The company sank to a loss in the period under review as the net
profit of RUB 29.93 billion ($0.39 billion) changed to a net loss of RUB 10.94 billion
(–$0.14 billion), Metal Expert has learnt. “The dynamics of financial indicators was
caused by a decrease in the average selling price and a slight reduction in produc-
tion volume, the net profit indicator was also significantly affected by exchange
rate differences,” ChMK told Interfax-Russia.

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In brief: Zaporizhstal ramps up pig iron production almost by one third

CIS / Pig Iron
In July, Zaporizhstal increased pig iron production by 32% to 262,000 t thanks to
brining BF No.3 to normal operation after an overhaul. Despite a surge in smelting
capacity (up 51% to 241,000 t), the mill continues to produce merchant pig iron.
In July, Zaporizhstal cast about 45,000 t of pig iron into ingots, Metal Expert esti-
mates (56,000 t a month earlier). In January-July, Zaporizhstal produced 1.4 million t
of pig iron, up 11% year-on-year. After the start of the all-out war in Ukraine, the
capacities were put into hot idling, as reported previously. In April 2022, the BF
shop partially resumed operation. Zaporizhstal has four BFs with an aggregate
designed capacity of about 4.4 million t per year, of which three furnaces (3.4 mil-
lion tpy) have been in operation since March 2023.

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www.metalexpert.com © 2023 Metal Expert, World Steel News, August 17, 2023 16
 Europe

Europe
Benelux scrap jumps on new deal to Turkiye
Europe / Scrap
Benelux suppliers continue to sell scrap to the international market, pushing prices
up. The local market strengthened as well.
A Dutch HMS 1&2 (80:20) batch changed hands to Turkiye at $368.5/t, up by $6.5/t
from the nominal level set at the beginning of the week. The demand has improved
abroad as customers need material, while suppliers keep asking for a higher price.
Taking into account the freshest deal, Metal Expert’s daily price assessments for
HMS 1&2 (75:25) and HMS 1&2 (80:20) are now set at $347/t FOB Rotterdam and
$352/t FOB Rotterdam, respectively, up by 6/t over the day.
Another European deal was closed in Turkiye lately. A German mixed lot, which
consists of 20,000 t of HMS 1&2 (80:20) and 5,000 t of bonus material, was booked
at $364.5/t CFR and at $384.5/t CFR respectively. The shipment is scheduled for
September or October.
On top of that, a Sweden scrap collector sold HMS 1&2 (80:20) to Turkiye at $370/t
CFR, shredded and bonus material at $390/t CFR. Meanwhile, US HMS 1&2 (90:10)
was booked there at $372/t CFR.
Dockside prices also went up to EUR 290‑315/t delivered for HMS 1&2 versus
EUR 280/t delivered last week. Prices in the domestic market are clearly moving
up amid the international moods. “A docks price has already increased by at least
EUR 10‑30/t and it is still running up,” a local source told Metal Expert.

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German scrap falls less than expected

Europe / Scrap
Scrap prices in the German mills contracts slightly declined in August, but the lev-
els are higher than expected.
Deals were closed in Germany at EUR 310‑325/t delivered for E3; EUR 315‑330/t
delivered for E40; EUR 320‑340/t delivered for E8. Prices for E3 decreased by
EUR 5‑10/t from the levels set during the July purchasing campaign. In a month-
on-month comparison, deal prices for shredded and new scrap material saw just a
EUR 5/t decline from the upper end of the previous range, while the lower end was
unchanged for both grades. The improved sentiment observed on the international
market over the last two weeks prevented the prices from dropping deeper and
even helped suppliers keep prices stable in some cases.
“The market was expected to drop by EUR 10‑20/t, but improved internation-
al market, low inflow of scrap and rising local demand softened the drop to just
EUR 5‑10/t,” a local market source told Metal Expert.

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 Europe

Germany: scrap prices in August, EUR/t delivered

Grade Price M-o-m

E3 310‑325 –5‑10
E40 315‑330 0‑5
E8 320‑340 0‑5

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Salzgitter, HGK cooperate to develop sustainable waterway logistics

Europe / Flat Products
One of Germany’s largest steel producers, Salzgitter, signed a Memorandum of
Understanding (MoU) with Europe’s largest inland waterway shipping company,
HGK Shipping, for the development of low-emission inland waterways.
The partnerships focuses on the creation and development of paired transport, i.e.
the formation of return cargoes to prevent empty hauls and optimize the use of
available transport space. Better planning will allow Salzgitter to optimise interac-
tion between its subsidiaries when shipping materials. “While Salzgitter Flachstahl
is specialised in manufacturing flat steel products for vehicle and pipe manufac-
turers and the building industry, for example, DEUMU [Salzgitter’s scrap trading
subsidiary] recycles scrap steel, metals and alloys and acts as a trader for them,”
Salzgitter said in a statement.
Currently, more than 1 million t of Salgitter steel are transported annually on
European waterways and that the majority of the group’s subsidiaries are connect-
ed to inland waterways. With the new partnership, this number can be increased,
Metal Expert learnt.
“The Salzgitter AG Group has set itself the strategic goal of playing a leading role
in the circular economy. One key element here will involve using scrap steel to
obtain crude steel. This also includes having sustainable logistics operations for
this very important secondary raw material,” managing director of DEUMU Sandrina
Sieverdingbeck said.

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www.metalexpert.com © 2023 Metal Expert, World Steel News, August 17, 2023 18
 Americas

Americas
Gerdau has Miguel Burnier iron ore reserves certified
Americas / Iron Ore
Brazilian steelmaker Gerdau received a certification report for the mineral reserves
at its new Miguel Burnier mine in Minas Gerais.
Gerdau announced that independent certifier SRK Consulting prepared the certifi-
cation report for the iron ore reserves at the Miguel Burnier mine which will supply
raw materials to the company’s Brazil Business Segment. The certification is for
total reserves of 476 million t of iron ore, of which 138 million t are proven and
338 million t probable reserves, which will ensure the production of raw material
with an iron content of 65% for 40 years.
The certifications is an important milestone for the BRL 3.2 billion investment in
a new sustainable mining platform in Minas Gerais between 2023 and 2026, an-
nounced by the company in June. The ore extracted at the Miguel Burnier mine
with iron contents of 35‑37% will undergo processing and will be enriched. With
the increase of the iron content from the current 62% to 65%, greenhouse gas
emissions will be reduced by 200,000 t of CO2 per year, Metal Expert learnt.
“Considering the annual production level foreseen in Miguel Burnier of 5.5 mil-
lion tons of iron ore, the certified reserves guarantee a useful life of 40 years to
the investment, reinforcing Gerdau’s commitment to the socioeconomic develop-
ment of the state of Minas Gerais today and in the future,” commented Gustavo
Werneck, CEO of Gerdau.
The new mine is expected to start operations at the end of 2025. The iron ore
from the platform will be used to supply Gerdau’s steel production units in Minas
Gerais: Ouro Branco, Barao de Cocais, Divinopolis and Sete Lagoas. The sustain-
able mining project will allow the company to increase the competitiveness of its
operations and expand its steel production in Minas Gerais in the future.

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Brazil’s steel production down by 5% in July

Americas / Flat Products, Long products
Brazil’s steel industry remained depressed in July amid languid demand and higher
imports.
In July, Brazil produced 2.7 million t of steel, down by 4.7% year-on-year, according
to the Brazilian Institute of Steel (Instituto Aco Brasil, IABr). The capacity utilisa-
tion rate declined by 3.1 p.p. to 63.9%. Finished steel production dipped by 11.8%
to 1.9 million t y-o-y in July, Metal Expert learnt.
Despite lower domestic sales (down 8.4% to 1.6 million t), apparent steel consump-
tion added 0.8% to 2 million t y-o-y in July, driven by imports that surged by 78.5%
to 481,000 t. According to IABr, imports from China reached 271,000 t.

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 Americas

“The growth of imports worries the Brazil Steel Institute, considering the existence
of excess capacity of 564 million t of steel in the world, which leads to predatory
market practices, protectionist escalation and trade deviations,” it said.

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In brief: US zeroes AD on South Korean HRC

Americas / Flat Products
After the final phase of the administrative review of the antidumping duty (AD)
order on imports of certain hot-rolled steel flat products from South Korea, the US
Department of Commerce (DOC) determined that the above-mentioned products
were not sold at less than normal value during the period of review October 1,
2021, through September 30, 2022. As a result, a final weighted-average dumping
margin for all exporters (Hyundai Steel Company, POSCO and 45 not selected for
individual examination companies) was set at 0%. During the previous administra-
tive review, POSCO received an AD of 0%, Hyundai Steel Company and not individ-
ually examined companies – 0.88%, Metal Expert reported earlier.
South Korean HRC exporters are also levied with countervailing duties (CVD). After
the latest administrative review of the CVD order for 2020, the DOC set a “de mini-
mis” CVD for POSCO and Hyundai Steel.

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