World Steel News 20230823

Metal Expert
World Steel News > Issue 163 (3421), Wednesday, August 23, 2023
Latest Contracts
Steel Futures
Ferrous futures rise on better sentiment, demand
MENA
Ex-EU scrap cargo booked in Turkiye
Emirates Steel Arkan maintains local

rebar price for September as expected
Local rebar prices weaken in Iraq, imports become costlier
HRC offers still scarce in GCC market
Turkiye decreases exports of merchant bars and sections in H1
GCC crude steel production under pressure of insufficient demand
Asia
Iron ore exceeds $110/t on strong market balance
Billet exporters to SE Asia target higher prices after rebound in China
Pakistani mills hike rebar prices for second time
BHP Group’s finacial results plunge on lower commodity prices
Japan’s crude steel production on rise in July, forecasts optimistic
CIS
Russia reduces CR flats exports in Q2, H1
Ukraine’s iron ore exports about to decline again
In brief: TMK partially pays coupon on bonds
www.metalexpert.com © 2023 Metal Expert, World Steel News, August 23, 2023 1
Europe Green Steel Knowledge Base
ETS development
In brief: Tenaris acquires pipe coating business for $166 million Low-price voluntary CO2 market
to scale up ahead of consolidation
In brief: GMH to improve productivity of forging unit (13.09.2022)
EU ETS reform slips on MEPs’
divergent ambitions (14.06.2022)
Americas EU carbon market needs more
transparency, carbon allowances
need optimal price (07.06.2022)
US crude steel production up 1% on week Standalone British ETS affects
steel industry as carbon prices
hold world record (10.05.2022)
Poland keeps insisting on carbon
World market adjustments (03.05.2022)
EU ETS benchmarking becomes
July’s increase in world steel production highest in two years powerful tool for emissions cuts
(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.
Latest Contracts
Latest Contracts
Contracts for steel products and raw materials
Commodity/specifications Origin/supplier Consumer Volume, t Price & delivery terms Details

Flat products
HRC Chinese first-tier mill Saudi Arabia 8,000‑10,000 $570/t CFR October shipment
HRC Chinese first-tier mill Oman 5,000 $580‑585/t CFR October shipment
Scrap
HMS 1&2 (80:20) Belgium Turkiye 25,000 $365/t CFR -
bonus Belgium Turkiye 5,000 $385/t CFR -
shredded Belgium Turkiye 5,000 $390/t CFR -
Iron ore
Newman lumps 62.7% Fe Australia China 80,000 unfixed September 16‑25 laycan
Daily price assessments for steel products and raw materials

Methodology
August 22, Daily
Commodity Country Currency, delivery term Metal Expert publishes the
2023 change
Iron ore, 62% Fe China $/t, CFR ex-Australia 112.5 +3.5 following types of prices:
Coking coal Australia $/t, FOB 259 0
Ferrous scrap, HMS 1&2
Turkey $/t, CFR ex-USA 370 –1 offer price – an offer from
(80:20)
Ferrous scrap, shredded Turkey $/t, CFR ex-USA 390 –1 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 344 –1 level as of the time of
(75:25)
Ferrous scrap, HMS 1&2 publication;
Netherlands $/t, FOB 349 –1
(80:20)
RMB/t, EXW Tangshan, contract price – a trans-
Square billet, 150 mm China 3,530 +30
incl. 13% VAT
action price confirmed on
Square billet, 150 mm China $/t, CFR ex-ASEAN 478 +2
Square billet, 150 mm China $/t, CFR outside ASEAN 470 +2 both seller’s and buyer’s
Square billet, 125‑150 mm CIS $/t, FOB 460 0 side;
Square billet, 125‑150 mm Turkey $/t, CFR 485 0
Rebar, 12 mm Turkey $/t, EXW, еxcl. 18% VAT 580 0
price assessment – Metal
Rebar, 8‑32 mm Turkey $/t, FOB 578 0
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 +5
HRC, base Germany EUR/t, EXW, еxcl. 19% VAT 640 0 market conditions.
Weekly price assessments for steel products and raw materials
Commodity Country Currency, delivery term August 18, 2023 W-o-w

Square billet, 130‑150 mm Iran $/t, FOB South ports 465 +2
Square billet, 130‑150 mm Thailand $/t, CFR ex-Iran 500 +2
HRC, 2‑8 mm Russia $/t, FOB Black Sea 575 –5
HRC, 1.9‑4 mm Turkey $/t, CFR ex-Russia 605 –5
Back to top
Steel Futures
Steel Futures
Ferrous futures rise on better sentiment, demand
Steel futures / Flat Products, Long products, Coal, Iron Ore
Chinese ferrous futures surged on Tuesday amid a number of factors including the
expectations of Beijing’s financial support to the local governments and better de-
mand for finished steel products.
On August 22, rebar and HRC futures on the Shanghai Futures Exchange (SHFE)
gained RMB 57/t ($7.9/t) and RMB 38/t ($5.3/t) respectively, d-o-d. Iron ore and
coking coal futures on the Dalian Commodity Exchange (DCE) rose by RMB 28.5/t
($4/t) and RMB 48/t ($6.7/t).
Sentiment in the steel and raw materials markets was endorsed by the news
published by a major Chinese information agency that the central government was
planning to allow 12 provinces and regions to sell RMB 1.5 trillion ($208.4 billion) of
special financing bonds to repay debts.
Finished steel demand also improved before the start of the high construction
season despite the doubts regarding the scale of consumption recovery. Besides,
“[steel] producers had no way but to raise prices because of a rapid cost increase,”
a market source told Metal Expert. During the past few days, iron ore and cok-
ing coal tags were going up amid the talks of ample steel production, while steel
quotes were either decreasing or relatively stable. Only on Tuesday, steelmaking
raw materials on the DCE rose by more than 3% d-o-d, while finished steel on the
SHFE by just 1‑1.6%.
Major steel and raw materials futures in China

$1 = RMB 7.1992
Products Exchange Delivery month Currency Price Change, d-o-d

Rebar, 16‑25 mm SHFE October RMB/t 3,723 +57
Rebar, 16‑25 mm SHFE October $/t 517.14 +7.92
HRC, 3.5‑9.75 mm SHFE October RMB/t 3,917 +38
HRC, 3.5‑9.75 mm SHFE October $/t 544.09 +5.28
Iron ore, 62% Fe DCE January RMB/t 805.5 +28.5
Iron ore, 62% Fe DCE January $/t 111.89 +3.96
Coking coal DCE January RMB/t 1,490 +48
Coking coal DCE January $/t 206.97 +6.67
Back to top
MENA
MENA
Ex-EU scrap cargo booked in Turkiye
MENA / Scrap
Turkiye’s steelmakers continue to book import scrap cargos this week, but the
upward trend seen earlier has stopped amid low finished steel sales. Information
about an ex-EU contract has been revealed.
A Marmara-based company purchased a mixed lot from a Belgian scrap seller. The
cargo includes 25,000 t of HMS 1&2 (80:20) at $365/t CFR, 5,000 t of bonus mate-
rial at $385/t CFR and 5,000 t of shredded one at $390/t CFR. However, the trans-
action has not been confirmed by the sides at the time of publication.
Negotiations are slow in the ferrous scrap sector as Turkish mills keep suffering
from sluggish rebar sales. “Some scrap lots are bought, rebar prices remain firm,
but the demand for Turkish longs remains the main problem, we need to see some
improvement,” a source told Metal Expert. After the round of scrap bookings and
limited availability of the material, most suppliers are not in a hurry to voice firm
offers and have decided to evaluate the situation.
Considering the recent information in the segment, Metal Expert’s daily price as-
sessment for HMS 1&2 (80:20) from the US East Coast has moved to $370/t CFR
Turkiye on August 22 versus $371/t CFR a day ago.
Back to top
Emirates Steel Arkan maintains local rebar price for September as expected
MENA / Long products
The UAE’s major long steel producer prefers to maintain the balance in the seg-
ment in early autumn, having decided not to change its price policy in a radical
way. Such developments were generally expected by the local market participants.
Emirates Steel Arkan left its September-rolling domestic rebar price unchanged.
The 10‑32 mm products will be available at AED 2,450/t ($667/t) CPT Abu Dhabi
and AED 2,458/t ($669/t) CPT Dubai, Sharjah and northern emirates. The grace
period is 90 days, Metal Expert has learnt.
The retail sector is enjoying stability as well. The average level for non-benchmark
mill products is AED 2,200‑2,235/t ($599-$608/t) delivered. It is unchanged since
the mid-July level.
MENA
The moderate project activity, coupled with the seasonal factor, is assumed a high-
ly possible reason for the stable price policy. “Hot weather, lower working hours,
as well as vacation seasons, slowed the market. There is a small pause before the
autumn,” a local source told Metal Expert.
The prices are indicated without 5% VAT. Currency rate: $1 = AED 3.673.
Back to top
Local rebar prices weaken in Iraq, imports become costlier

Iraqi rebar manufacturers somewhat backed down from their previous price posi-
tions. Apart from the high import customs duty on rebar that impacted local steel
prices, market participants also report weaker demand due to the approaching
religious holidays in the country.
EAF-based manufacturers are offering rebar at $710‑760/t EXW versus $720‑760/t
EXW two weeks ago. “We are selling at IQD 1,159,000/t EXW, while the current
exchange rate is $1 = IQD 1,500‑1,520. Our price is stable for the moment,” an
insider told Metal Expert. In the meantime, those producers who use foreign billet
for rebar rolling have reduced their tags significantly and are trying to trade at
$665‑670/t EXW versus $700/t EXW earlier. Factories from the Basra region have
lowered offers by $20/t and are targeting $630/t EXW.
Rebar from mills based on induction furnaces could be booked at $660‑670/t EXW
versus $670‑690/t EXW at the beginning of August. Producers that offered their
rebar at $695/t EXW are currently trying to trade at $680/t EXW. “The projects will
be mostly stopped. People started walking towards Karbala at the beginning of last
week, and they will come back after three weeks. The interest in purchases might
return after the end of the holidays,” a local source told Metal Expert.
Iranian rebar could be sourced at $500‑525/t EXW versus $480‑500/t EXW earlier.
Turkish suppliers are offering their products at $590‑595/t EXW Iskenderun com-
pared to $550‑565/t EXW before.
Iraqi stockists in Baghdad are offering Iranian steel at $600/t ex-warehouse, sta-
ble from the end of July. High-quality rebar of this origin lost $10/t and is available
at $650/t ex-warehouse. Turkish products could be booked at $730/t EXW, un-
changed over two weeks. Rebar from Saudi Arabia is offered at $670/t and $710/t
ex-warehouse, depending on the producer.
Meanwhile, stockists in Erbil, where rebar import duty was implemented, are trying
to trade at higher tags. Iranian steel could be bought at $615/t ex-warehouse.
Turkish product is available at $750/t ex-warehouse, Metal Expert has learnt.
Back to top
MENA
HRC offers still scarce in GCC market

MENA / Flat Products
The pull of offers is minimal in the GCC HRC market as the majority of the tradi-
tional suppliers focus either on their domestic buyers or alternative destinations.
Chinese mills proposed competitive price levels, which attracted some buyers.
Several deals were closed in the GCC over the last week with Chinese suppliers
succeeding in trade, owing to affordable offers. Around 5,000 t of flats (1‑1.35 mm
size) was sold in Oman, while Saudi Arabia booked up to 8,000‑10,000 t for October
shipment, Metal Expert learnt. The contract prices were ranging within $570‑585/t
CFR depending on the destination. The products lost $5/t of their value compared
to the previous round of sales.
There are not many alternatives in the market as most of the traditional suppliers
are out. “Indian mills are not offering. They are still enjoying the demand locally.
So, only China is in the market to sell,” an insider mentioned. Reportedly, one of
the key Japanese producers has been testing the segment with higher offers. HRC
to be shipped in November can be booked at $595‑600/t CFR UAE.
The interest in procurement is sporadic, with enquiries being placed for small lots
mainly. “The decision-making process is slow as there is a traditionally low season.
The demand on sites is minimal. All supply-demand chain is in lull,” a regular HRC
buyer told Metal Expert.
Back to top
Turkiye decreases exports of merchant bars and sections in H1

Turkiye continued to register negative dynamics in foreign trade with merchant
bars and sections. The country decreased shipments both in June and H1 2023.
The Middle East and CIS were the only regions that increased the intake of the
mentioned products.
The local producers supplied a total of 747,710 t of sections to overseas buyers
in H1 2023, reducing shipments by 18.5% year-on-year, according to the Turkish
Statistical Institute (TUIK). Turkiye decreased exports to almost all destinations,
except for the Middle East and CIS, Metal Expert learnt.
In particular, the country directed 21% of the volume or 158,519 t to buyers in the
Middle East, 14.5% up y-o-y, owing to higher intake by the UAE. CIS customers
MENA
consumed 5% or 38,894 t (21.7% up). Ukraine was the main buyer in the region,
taking into account the deficit of its own production.
Europe, the largest destination, narrowed purchases by 30% to 197,479 t, with the
share accounting for 26% versus 31% a year ago.
Egypt and Morocco remained the largest trade partners among all countries, de-
spite having reduced the imports of Turkish sections. North Africa in general took
19% of the total volume or 145,324 t (–20.6%), Metal Expert learnt. Other African
countries almost halved bookings to 34,087 t, which accounted for a 5% share.
The Americas posted no increase either. South America imported 110,500 t (15%
share), 10.8% down, while North America cut purchases by 21.7% to 41,482 t (6%
share). The remaining 2% or 16,809 t was sent to Asian countries.
Top‑10 destinations for Turkish sections, t
Country H1 2023 H1 2022 Y-o-y, % Jun 2023 Jun 2022 Y-o-y, %

Egypt 56,779 70,532 –19.5 10,746 9,003 +19.4
Morocco 52,888 84,545 –37.4 3,014 5,159 –41.6
Canada 33,319 41,664 –20.0 9,046 5,198 +74.0
UAE 32,033 18,521 +73.0 3,078 3,426 –10.2
Greece 30,156 24,283 +24.2 8,957 8,787 +1.9
UK 30,058 54,880 –45.2 12,655 22,533 –43.8
Romania 28,092 54,477 –48.4 7,463 15,006 –50.3
Israel 27,566 43,120 –36.1 2,735 5,422 –49.6
Ukraine 23,772 14,458 +64.4 5,020 6,251 –19.7
Saudi Arabia 22,916 – – 1,226 – –
Others 410,129 511,194 –19.8 73,312 105,707 –30.6
Total 747,710 917,674 –18.5 137,252 186,492 –26.4
Source: TUIK.
Back to top
GCC crude steel production under pressure of insufficient demand

MENA / Flat Products, Long products
Slow business activity during the hot season in the GCC countries translated into
weaker crude steel production results during the first seven months of 2023. While
the drop was not significant, it reflected some challenges in demand.
Saudi Arabia, the UAE and Qatar, which are the three major steelmaking countries
in the GCC, produced slightly lower than 8.1 million t of crude steel during January-
July 2023, according to worldsteel. The output softened by 1.5% on an annualised
comparison, mainly due to a 6% drop in volumes in the UAE. In the meantime,
Qatar managed to increase tonnages by 4%, while Saudi Arabia maintained the
status quo, Metal Expert learnt.
The dynamics of July figures were differently directed. The crude steel production
plunged by 7.8% year-on-year, exceeding 1.1 million t, which was explained by much
weaker market fundamentals. “GCC countries look like front windows in the super-
market with the most attractive goods offered to customers, but it does not mean
MENA
that they do not have internal challenges. The market is not healthy due to both
global and local headwinds, but we hope for better as the project pipeline is big,” a
source explained. Nevertheless, the July figures gained almost 4% on the month.
The regional steel producers hope for some recovery in business activity at the
end of summer, which might somewhat support steelmaking operations. However,
the general business environment will most likely weigh on steel producers further.
“We are at the peak of the lowest season in the GCC. But you can not blame only
the seasonality factor as it is. The financial sustainability, namely the state of the
economy, the investors’ trust, the government control of all processes, is among
the biggest concerns,” a market insider told Metal Expert. “There is a moment of
insecurity, which makes things look not so bright in crude steel production as well,”
he resumed.
Crude steel production in some GCC countries, t
Country Jan-Jul 2023 Jan-Jul 2022 Y-o-y, % July 2023 June 2023 M-o-m, %
Saudi Arabia 5,648,506 5,687,802 –0.7 810,000 780,552 +3.8
UAE 1,765,931 1,874,618 –5.8 240,000 233,655 +2.7
Qatar 668,852 642,291 +4.1 101,683 95,691 +6.3
Total 8,083,289 8,204,711 –1.5 1,151,683 1,109,898 +3.8
Source: worldsteel.
Back to top
Asia
Asia
Iron ore exceeds $110/t on strong market balance
Asia / Iron Ore
Iron ore rose for the fourth straight working day on Tuesday, reaching almost a
monthly high amid improved market moods, better steel demand and new signs of
the raw material supply decrease.
Australian iron ore fines 62% Fe leapt by $3.5/t to $112.5/t CFR, the highest since
July 27, after its futures increased by RMB 28.5/t ($4/t) on the DCE and $3.2/t on
the SGX on the day. The raw material price was pushed up again by a number of
factors, in particular, the news released by Caixin information agency that the cen-
tral government was planning to allow 12 provinces and regions to sell RMB 1.5 tril-
lion ($208.4 billion) of special financing bonds to repay debts.
Stronger steel demand also supported the iron ore price. “Daily [rebar] trade
became better, nearing to 200,000 t,” a market source told Metal Expert.
Expectations of high steel production in the short term, which were been propel-
ling the raw material in the previous several days, sustain in the market as well.
At the same time, the latest Steelhome data raised new worries regarding sup-
ply sufficiency. Last week, iron ore arrivals to China resumed plunging after a
short-lived surge – by 38.5% w-o-w to 10.44 million t. The combined shipments
from Australia and Brazil inched down by 1.3% to 24.69 million t over the period.
Besides, last Friday’s data showed that port inventories of the steelmaking ingredi-
ent in China remained below 117 million t though rebounded slightly from the early
August level. “Concerns over China’s economy are a headache, but currently, the
balance in the iron ore market is strong,” another source said.
However, as finished steel prices rose much slower compared to those for iron ore
and coking coal, cost pressure on Chinese steel mills continued to increase, im-
pacting trading activity on all destinations.
China: deals for iron ore, $/t
Products Fe, % Sale method Volume, t Laycan Price, CFR Qingdao

Newman lumps, Australia 62.7 globalORE 80,000 September 16‑25 unfixed
Back to top
Asia
Billet exporters to SE Asia target higher prices after rebound in China

Asia / Billet
Billet suppliers to Southeast Asia are trying to slightly increase prices, following a
better sentiment in China. Buyers, in turn, are not very active at the start of the
week.
Offers for China, ASEAN origin 3sp/5sp semis are coming at $510‑520/t CFR to SE
Asia, compared to $510‑515/t CFR on Tuesday last week. Bids for Chinese material
are heard at $500/t CFR. Overall demand in the region is sluggish, hampered by
the slow longs sector. Some respondents note that they have already replenished
stocks previously and now are just watching the market. “The main problem is that
demand is close to zero now and we see no response from our customers. At the
same time, billet suppliers do not wish to reduce prices, mainly due to costlier raw
materials,” a representative of a trading company in SE Asia told Metal Expert.
On Tuesday, Chinese rebar futures rebounded by RMB 57/t ($7.9/t) d-o-d, driven by
improved interest in finished steel products ahead of the high construction season
start and expectations that Beijing will render financial support to the local govern-
ments, Metal Expert learnt. As a result, Chinese mills have increased offers for 3sp
billet from $495/t FOB to $500/t FOB over a day, insiders reveal.
ASEAN semis from mills are available at $500‑505/t FOB on August 22. “We are
focusing on regional billet exports now, targeting at $500/t FOB, but competition is
fierce,” a Malaysian producer told Metal Expert.
Offer prices for billet to SE Asia
Region/Country Origin/Supplier Specification Price, $/t

SE Asia China/mills 3sp 500 FOB
SE Asia Indonesia/mill 3sp 500‑505 FOB
SE Asia Malaysia/mill 3sp 500 FOB
Indonesia China/trader 3sp 510 CFR
Philippines Indonesia/trader 5sp 518‑520 CFR
Philippines Indonesia/trader 3sp 513‑515 CFR
Back to top
Pakistani mills hike rebar prices for second time

Asia / Long products
Local rebar prices keep climbing in Pakistan due to constant currency depreciation
and higher costs.
Asia
Pakistani steelmakers have hiked local rebar offers by PKR 10,000/t ($33/t) since
the previous announcement made in early August. As a result, new offers for G60
9.5‑12 mm rebar rose to PKR 278,500‑280,500/t ($931‑938/t) EXW, and prices for
16 mm and above rebar went up to PKR 276,500‑278,500/t ($924‑931/t) EXW. “Due
to the continuous and unprecedented increase in the cost of energy and highly
volatile PKR-USD parity, we can no longer absorb the huge price fluctuations in the
manufacturing costs,” one of the steelmakers said in its letter to the buyers.
In July-August, the Pakistani government increased prices for petroleum, diesel
and LNG as well as energy tariffs. Foreign scrap prices have also been rising over
August due to a rebound in buying activity in India and Turkiye as well as a need
to restock among Pakistani importers. Since the beginning of the month, offers for
EU and UK shredded material have gained $15‑20/t, coming to $435‑440/t CFR.
“Prices for longs have risen as the currency is not stable and it is making things
more and more expensive. External powers are at work with the help of internal
factors,” a Pakistani trader told Metal Expert.
Back to top
BHP Group’s finacial results plunge on lower commodity prices

Asia / Coal, Iron Ore
The financial performance of BHP Group (BHP) continued to deteriorate in the sec-
ond half of FY 2023 (ended June 30) amid weak prices for the major commodities,
contributing to the plunge in full-year revenue.
In July 2022 – June 2023, BHP’s revenue and underlying EBITDA fell by 17% to
$53.8 billion and by 31% to $28 billion respectively compared to FY 2022, the com-
pany said in a report on August 22. “Underlying EBITDA decreased primarily as a
result of the lower prices across major commodities, and the impacts of inflation
on our underlying cost base, particularly on labour, diesel and electricity prices,”
according to the miner. The price drop was mainly seen in iron ore, coking coal and
copper segments.
Despite record iron ore and almost stable coking coal production, BHP’s earnings
were significantly impacted by lower prices for its main products, caused by global
economic slowdown. In particular, the company’s average realized iron ore price
slumped by 18% y-o-y to $92.54/t FOB, while that for coking coal – by 22% to
$271.05/t FOB, Metal Expert learnt. Iron ore business accounted for 59% of BHP’s
underlying EBITDA.
Asia
BHP maintained its output guidance for FY 2024 at 282‑294 million t for iron ore
and 56‑62 million t for coking coal, first announced in July.
BHP Group’s performance in iron ore business
Indicator FY 2023 FY 2022 Y-o-y, %

Shipments, million t (100%) 280.7 283.9 –1
Revenue, $ millions 24,812 30,767 –19
EBIT, $ millions 14,671 19,471 –25
EBIT/t, $/t 52 69 –25
Back to top
Japan’s crude steel production on rise in July, forecasts optimistic

Asia / Flat Products, Long products
Japanese total crude steel output rebounded in July, owing to better fundamentals
in the automotive sector and supportive demand in the foreign markets.
In July, the country produced 7.34 million t of crude steel, up 0.9% year-on-year,
after the figure had dropped by 1.7% in June, according to the Japan Iron and Steel
Federation (JISF). The rising output of HRC, CRC and HDG contributed to the posi-
tive dynamics, owing to sufficient demand for Japanese vehicles.
Demand for Japanese steel products improved in the overseas markets in July. The
country’s total steel exports surged by 12.2% to 2.75 million t y-o-y, according to
the preliminary data from the Ministry of Finance.
In Q3 (July-September), crude steel production in Japan is expected to inch up
by 2.2% to 22.31 million t y-o-y, according to the Ministry of Economy, Trade and
Industry of Japan (METI). This is the first time since Q4 2021 that the figure is like-
ly to rise on the year. Demand for Japanese steel products in the local and export
markets is projected to go up 0.9% y-o-y to 20.37 million t in Q3. The increase is
driven by a rise in export sales (+10% y-o-y) and better consumption in the auto-
motive industry, Metal Expert reported.
Japan: steel production* in July 2023
Type July Y-o-Y, %

BOF steel output 5,614 +4.9
EAF steel output 1,776 –9.9
HRC 3,152 +12.9
CRC 1,243 +6
HDG 721 +8.3
Heavy plates 747 –2.7
Sections and bars 1,049 –0.3
Total crude steel output 7,389 +0.9
Source: Japan Iron and Steel Federation
* – volume, ’000 t
Back to top
CIS
CIS
Russia reduces CR flats exports in Q2, H1
CIS / Flat Products
Russia decreased the total volume of cold-rolled sheet and coil exports both in
Q2 and H1, given the lower demand and repairs at mills. MENA was the main
destination.
The country exported 240,412 t of CR flat steel products in Q2 2023, down by 4%
quarter-on-quarter, according to Metal Expert data. On the one hand, global neg-
ative moods weighed on trade activity due to weakened demand and unattractive
price dynamics. On the other hand, Russian producers conducted planned and un-
planned repairs at rolling facilities, which lowered the availability of steel products.
MENA countries (primarily, Turkiye) remained the main buyer of Russian steel,
although the volume lost 14% over a quarter. On the contrary, the CIS countries
received tonnages higher by 11%. The volume of shipments to Asia was almost
unchanged.
Year-to-date results also decreased. Russia supplied 489,592 t in H1 2023, 22%
down year-on-year. Asia was the only region that increased imports from Russia by
148% but thanks to higher activity in Q1. Sales to other regions dropped. In par-
ticular, customers in MENA cut an intake by 21%, while in the CIS – by 16%. There
were no exports of Russian CR flats in Europe this year as it was forbidden by the
sanctions, Metal Expert reported. Since the US and Canada tolerate no Russian
invasion of Ukraine, customers in these two countries did not import Russian steel,
therefore, the volume of exports to the Americas plunged by 84%.
Geography of Russia’s CR flats exports, t

Region H1 2023 H1 2022 Y-o-y, % Q2 2023 Q1 2023 Q-o-q, %
MENA 219,489 278,716 –21 101,627 117,862 –14
CIS 164,745 196,194 –16 86,826 77,919 +11
Asia 97,461 39,249 +148 48,126 49,336 –2
Americas 7,768 49,304 –84 3,704 4,064 –9
Sub-Saharan Africa 129 - - 129 - -
Europe - 63,832 - - - -
Total 489,592 627,368 –22 240,412 249,180 –4
Source: Metal Expert.
Back to top
Ukraine’s iron ore exports about to decline again

CIS / Iron Ore
Ukraine’s iron ore exports continued to decline in July under the pressure from
weak demand in Europe and worsening problems with logistics.
A total of 1.41 million t was shipped abroad from Ukraine last month (down 2% from
June). Aggravating problems with transportation were the major issue last month.
Russia’s withdrawal from the Grain Initiative led to a surge in railway shipments of
agricultural cargoes, which crucially increased the load on border infrastructure.
CIS
The situation with consumer activity was no better. An increase in pellet ship-
ments (to 708,000 t, up 11%) was situational, as ArcelorMittal Poland was build-
ing up stocks to launch BF No.2 at the facility in Dabrowa Gornicza. Supplies to
other countries were mainly decreasing. As a result, the share of Poland in total
shipments almost tripled to 20%, while those of Slovakia, the Czech Republic and
Romania decreased to 58% (76% in June), 4% (6%) and 2% (3%), respectively.
Metinvest, which increased deliveries almost by 25% following the completion of
repairs of pelletizing equipment at Central GOK, accounted for more than a half of
total exports. Ferrexpo Poltava Mining kept shipments abroad unchanged.
The volume of export-allocated concentrate and sintering ore decreased to
727,000 t (down 7%) last month due to Kryvyi Rih Iron Ore Plant decreasing sin-
tering ore deliveries by 23%. Having sold most of its stocks, the facility returned
to the usual level of shipments in July. Concentrate exports stayed virtually un-
changed m-o-m. Lower shipments from Metalinvest’s GOKs, which refocused on
more profitable products, were almost fully compensated by AMKR GOK doubling
its deliveries (the mill continues to redirect spare volumes due to AMKR’s limited
needs). Poland (40%), the Czech Republic (38%), Slovakia (14%), and Serbia (7%)
remained the key sales markets, according to Metal Expert data.
The decrease in Ukraine’s exports is very likely to accelerate in the coming months.
Another problem has arisen – limited operation of the Danube ports, which trans-
shipped as much as 16% of iron ore exports in the previous months. The sea-
sonal shallowing of the river and attacks on the port infrastructure have led to
increased queues for loading and a surge in freight rates. Moreover, on August 11,
Ukrzaliznytsia introduced a convention for freight transportation to Poland through
the Izov station, used by Ukrainian iron ore suppliers as the key border crossing
for deliveries to the country. On the other hand, market participants are reporting
further decline in demand for the material from European consumers in August.
Specifically, US Steel Kosice and Voestalpine are reducing purchases due to the
beginning of BF repairs. Liberty Steel is putting the only BF at Hungary’s Dunaferr
into the idle state. Having completed building up iron ore stocks, ArcelorMittal
Poland is not interested in extra volumes so far.
Back to top
In brief: TMK partially pays coupon on bonds

CIS / Tubes & Pipes
Pipe Metallurgical Company arranged a separate coupon payment on bonds is-
sued by TMK Capital S.A. in the amount of $500 million maturing in 2027. “On
August 18, 2023, TMK transferred a portion of the coupon payment due to holders
whose rights are recorded by NBCO JSC National Settlement Depository and other
Russian depositories that are depositors of foreign depositary and clearing organi-
zations,” TMK said in a statement. The company does not report about the coupon
payment to foreign holders, whose rights are not recorded by Russian depositories,
Metal Expert has learnt.
Back to top
Europe
Europe
In brief: Tenaris acquires pipe coating business for $166 million
Europe / Tubes & Pipes
Tenaris, one of the leading manufacturers of pipes, entered into a definitive agree-
ment to acquire Bredero Shaw International BV from technology provider Mattr
for $166 million. Bredero Shaw specializes in pipe coating and includes nine plants
in Canada, Mexico, Norway, Indonesia, UAE and USA, as well as several mobile
concrete plants, Metal Expert learnt. Tenaris will also receive research and develop-
ment facilities in Toronto and Norway and a broad portfolio of intellectual property
and products.
Tenaris expects the transaction to be closed within 6 months following regulatory
approvals in Mexico and Norway.
Back to top
In brief: GMH to improve productivity of forging unit

Europe / Long products
Wildauer Schmiede- und Kurbelwellentechnik (WSK), a forging subsidiary of
Germany’s medium-sized special steel producer Georgsmarienhuette (GMH), is
investing EUR 2.5 million in the installation of two heating furnaces, a charging sys-
tem and a forging hammer line for its thermoprocessing plant. The investment aims
to improve the product quality, significantly increase productivity and reduce the
company’s carbon footprint by using hydrogen instead of natural gas, Metal Expert
learnt.
The heating furnaces are scheduled to start operation in early 2024, and the new
loading system is scheduled for regular operation in the summer of 2024.
WSK manufactures large closed-die forgings and ready-to-install crankshafts for
large engines and components for use in rolling stock, mechanical and plant engi-
neering, the food industry and other sectors.
Back to top
Americas
Americas
US crude steel production up 1% on week
Americas / Steel Semis
US crude steel production continued to increase last week after significant declines
reported in early August. Capacity utilisation remained below 80% though.
In the week ended August 19, US crude steel production was 1.756 million st, up
1.1% compared to the previous week, according to the American Iron and Steel
Institute (AISI). Capacity utilisation rates of US mills rose
by 0.6 p.p. to 77.2% week-on-week, Metal Expert learnt. PRODUCTION AND CAPACITY UTILIZATION
RATE OF US MILLS
Year-to-date crude steel output was 56.363 million st, 1,76 79
down by 2%, according to the report. A capacity rate
1,74
fell by 3.8 p.p. to 75.9% since the beginning of the year, 78
compared to the same period last year. 1,72

77
The production increased by 2% in three regions: to 1,70

76
578,000 st in the Great Lakes, to 761,000 st in the south 1,68
and to 222,000 st in the Midwest. At the same time, 1,66 Production, mln net tons
75
steelmakers in the Northeast and in the west lowered Capacity utilization rate, %
1,64 74
production by 4%, to 127,000 st and 68,000 st, respec- 27.05 17.06 08.07 29.07 19.08
tively, according to the report. Source: AISI
Back to top
World
World
July’s increase in world steel production highest in two years
World / Steel Semis
Global steel production was systematically declining over the recent two years
amid the impact of the pandemic and geopolitical crises, with just rare and small
increases reported occasionally. In July, the world steel production registered the
highest increase since June 2021.
In July 2023, steel production of 63 counties reporting to worldsteel and account-
ing for 97% of the total world steel output was 158.5 million t, up 6.6% y-o-y. Last
time, such a significant increase in the world steel output was reported in June
2021, when the figure jumped by 12%, Metal Expert notes. The rise was mostly
driven by China, which raised steel output for the second month in a row after a
slump in April-May.
Chinese steelmakers produced 90.8 million t in July, up by 11.5% y-o-y. Steel mills
increased production mainly due to a low comparison basis, as in July 2022 steel
demand was weak due to the covid restrictions and still negative margins of steel
mills.
Among other top ten steel-producing countries, increases were reported in India
(+14.3% y-o-y), Turkiye (+6.4%), Russia (+5.8%), Japan (+0.9%) and the US (+0.5%).
Other countries lowered steel output. A major decline was reported in South Korea
(–9%) and Brazil (–4.7%) due to weak demand. The EU mills, still impacted by the
energy and supply-chain problems, reduced their steel production by 7.1%, accord-
ing to worldsteel.
Crude steel production by regions and countries, million t

Region/country July 2023 July 2022 Y-o-y, %
Asia and Oceania 119.9 109.9 +9.1
China 90.8 81.4 +11.5
Japan 7.4 7.3 +0.9
India 11.5 10.1 +14.3
South Korea 5.7 6.3 –9.0
EU (27) 10.3 11.1 –7.1
Germany 3.0 3.0 –0.5
North America 9.4 9.5 –1.3
USA 6.9 6.9 +0.5
CIS 7.4 6.8 +9.3
Russia 6.3 6.0 +5.8
South America 3.4 3.7 –8.4
Brazil 2.7 2.8 –4.7
Rest of Europe 3.6 3.4 +5.1
Turkiye 2.9 2.7 +6.4
Middle East 3.1 3.2 –3.9
Iran 2.0 2.0 –1.5
Africa 1.4 1.1 +26.1
World 158.5 148.7 +6.6
Source: worldsteel.
Back to top
World Steel News is an electronic
publication which is available both
in the form of an online web service
and a daily pdf and html newsletter.
Subscription and Trials

www.metalexpert.com
subscriptions@metalexpert.com
Feedback
Comments from readers are welcome.
Please email to Andrey Pupchenko
a.pupchenko@metalexpert.com
Disclaimer This publication is for information purposes only. The information contained in this document has been compiled from
sources believed to be reliable. Metal Expert cannot be made liable for any loss no matter how it may arise.
Copyright 2023 Metal Expert. All rights reserved. No part of this publication (text, data or graphic) may be reproduced, stored in
corporate data retrieval systems or transmitted in any form without obtaining prior written consent of Metal Expert.

World Steel News 20230823

Uploaded by

Document Information

Original Title

Copyright

Available Formats

Share this document

Share or Embed Document

Sharing Options

Did you find this document useful?

Is this content inappropriate?

Copyright:

Available Formats

World Steel News 20230823

Uploaded by

Copyright:

Available Formats

Metal Expert

Ferrous futures rise on better sentiment, demand

Ex-EU scrap cargo booked in Turkiye

Emirates Steel Arkan maintains local

Local rebar prices weaken in Iraq, imports become costlier

HRC offers still scarce in GCC market

Turkiye decreases exports of merchant bars and sections in H1

GCC crude steel production under pressure of insufficient demand

Iron ore exceeds $110/t on strong market balance

Billet exporters to SE Asia target higher prices after rebound in China

Pakistani mills hike rebar prices for second time

BHP Group’s finacial results plunge on lower commodity prices

Japan’s crude steel production on rise in July, forecasts optimistic

Russia reduces CR flats exports in Q2, H1

Ukraine’s iron ore exports about to decline again

In brief: TMK partially pays coupon on bonds

Commodity/specifications Origin/supplier Consumer Volume, t Price & delivery terms Details

Daily price assessments for steel products and raw materials

Weekly price assessments for steel products and raw materials

Commodity Country Currency, delivery term August 18, 2023 W-o-w

Major steel and raw materials futures in China

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

Local rebar prices weaken in Iraq, imports become costlier

HRC offers still scarce in GCC market

Turkiye decreases exports of merchant bars and sections in H1

Top‑10 destinations for Turkish sections, t

Country H1 2023 H1 2022 Y-o-y, % Jun 2023 Jun 2022 Y-o-y, %

GCC crude steel production under pressure of insufficient demand

Crude steel production in some GCC countries, t

China: deals for iron ore, $/t

Products Fe, % Sale method Volume, t Laycan Price, CFR Qingdao

Billet exporters to SE Asia target higher prices after rebound in China

Offer prices for billet to SE Asia

Region/Country Origin/Supplier Specification Price, $/t

Pakistani mills hike rebar prices for second time

BHP Group’s finacial results plunge on lower commodity prices

BHP Group’s performance in iron ore business

Indicator FY 2023 FY 2022 Y-o-y, %

Japan’s crude steel production on rise in July, forecasts optimistic

Japan: steel production* in July 2023

Type July Y-o-Y, %

Geography of Russia’s CR flats exports, t

Ukraine’s iron ore exports about to decline again

In brief: TMK partially pays coupon on bonds

In brief: GMH to improve productivity of forging unit

compared to the same period last year. 1,72

The production increased by 2% in three regions: to 1,70

Crude steel production by regions and countries, million t

Subscription and Trials

You might also like