May 2016 crude steel production

World crude steel production for the 66 countries reporting to the WSA (worldsteel) was 139 million tonnes (Mt) in May 2016, a -0.1% decrease compared to May 2015.

China’s crude steel production for May 2016 was 70.5 Mt, an increase of 1.8% compared to May 2015. Elsewhere in Asia, Japan produced 8.8 Mt of crude steel in May 2016, a decrease of -0.9% compared to May 2015. India’s crude steel production was 8.0 Mt in May 2016, up by 4.9% on May 2015. South Korea’s crude steel production was 5.8 Mt in May 2016, down by -3.5% on May 2015

In the EU, Germany produced 3.9 Mt of crude steel in May 2016, an increase of 4.0% compared to May 2015. Italy produced 2.2 Mt of crude steel, up by 9.3% on May 2015. Spain produced 1.3 Mt of crude steel, down by -10.6% compared to May 2015. France produced 1.2 Mt of crude steel, down by -18.8% compared to May 2015.

Turkey’s crude steel production for May 2016 was 3.0 Mt, up by 5.4% on May 2015.

In May 2016, Russia produced 6.0 Mt of crude steel, up by 0.4% over May 2015. Ukraine produced 2.3 Mt of crude steel, up by 5.7% compared to the same month in 2015.

The United States produced 6.8 Mt of crude steel in May 2016, a decrease of -0.4% compared to May 2015.

Brazil’s crude steel production for May 2016 was 2.6 Mt, down by -13.2% on May 2015.

The crude steel capacity utilisation ratio of the 66 countries in May 2016 was 71.3%. This is 1.0 percentage point lower than May 2015. Compared to April 2016, it is 0.1 percentage point lower.

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Source: WSA

US has raised its import duties on Chinese steelmakers by more than fivefold

The US has raised its import duties on Chinese steelmakers by more than fivefold after accusing them of selling their products below market prices.

The taxes of 522% specifically apply to Chinese-made cold-rolled flat steel, which is used in car manufacturing, shipping containers and construction.

The US Commerce Department ruling comes amid heightened trade tensions between the two sides over several products, including chicken parts.

Steel is an especially sensitive issue.

US and European steel producers claim China is distorting the global market and undercutting them by dumping its excess supply abroad.

US steel makers say that the Chinese government unfairly subsidises its steel exports. Meanwhile China has been under pressure to save its steel sector, which is suffering from over-capacity issues because of slowing demand at home.

China's Ministry of Finance has not directly responded to the US ruling but on its website this morning it has said that China will maintain its tax rebate policy for steel exports as part of its efforts to help the bloated steel sector recover.

These tax rebates are seen as favourable policies to shore up ailing steel companies in China, and to avoid massive job losses. Expect more fiery rhetoric from the US on China's unfair trading practices soon.

Britain’s steel trade body and unions have called on the UK and the EU to take urgent action to stop Chinese steel dumping, after the US government increased tariffs to more than 500%.

China denies that its mills have been dumping their products in other countries, arguing that its steelmakers are more efficient.

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China's Shanxi suspends new ferroalloy, aluminum, steel project approvals

Shanxi province in northwest China has suspended the approval of new ferroalloy, aluminum and steel projects in 2016 as part of air pollution control plans, the provincial government said Wednesday.

The suspension is also aimed at reducing surplus supply in the sectors, the provincial government said in a report on its website.

Shanxi's steel and nonferrous metal sectors are high consumers of energy and water, resulting in pollution and water shortages, according to the government.

It is aiming to improve air quality and lower emissions by streamlining its industry structure.

The province also targets scrapping 33,000 outdated vehicles and banning high emission vehicles from January 1, 2017.

Shanxi was among China's 10 largest aluminum producing provinces in 2015, producing 660,257 mt of refined aluminum in the year, down 20% from 2014, data from the China Nonferrous Metals Industry Association showed.

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EU adopts new prior-surveillance system for steel imports to protect industry

The European Union (EU) announced on Friday that it had established a prior-surveillance system for import of steel products into the bloc in order to further protect its own steel industry.

Based on the regulation adopted on Friday, imports of steel products into the EU will now need an import license, said the EU's executive arm the European Commission in a statement.

The commission said the new mechanism was part of "a series of measures aiming to support the EU steel sector."

The EU has long claimed that importing steel products from third countries, such as China, have jeopardized its own labor market.

But Beijing warned that trade protectionism measures would do no help to tackle global steel overcapacity.

The steel industry in Europe represents 1.3 percent of EU GDP and provided around 328,000 jobs in 2015, the commission said.

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China to end subsidies on steel exports

The United States and China have reached an agreement where China will end its subsidies on steel exports, which enable them to undercut American steelmakers on price and led to more than 1,000 steelworker layoffs in Northwest Indiana last year.

China exported more than 112 million tons of steel last year, more than the United States can even produce. Chinese companies were often able to sell steel abroad at a loss because they received heavy government subsidies, such as having the Communist government pay the entire power bills for steel mills.

“Today we have signed an agreement with China to eliminate export subsidies that the United States challenged because they are prohibited under WTO rules," U.S. Trade Representative Michael Froman said. "This is a win for Americans employed in seven diverse sectors that run the gamut from agriculture to textiles to medical products, who will benefit from a more level playing field on which to compete."

The agreement underscores President Barack Obama's commitment to aggressively enforce trade rights to secure results for American workers, farmers, and businesses, Froman said.

The deal was announced after a two-day hearing in Washington by the U.S. Trade Representative and the U.S. Department of Commerce. The United Steelworkers union and steelmakers gave federal officials an earful about the 13,500 steelworkers that have been laid off because of the global import crisis.

Froman said China has agreed to withdraw central government funding for exports, including steel and aluminum, to end preferential service agreements that enable companies to get free or discounted services, and to end cash grants for exports.

"The agreement is one good step forward; however, the agreement will not make the 700 million tons of excess global steel capacity, including China’s 425 million tons of excess steel, vanish into thin air," he said. "China continues to pose a real and constant threat to American workers and their families, and I will continue to work every day to fully enforce all of our trade laws and stop the influx of illegal steel imports." U.S. Sen. Joe Donnelly said there was reason to be wary, given China's past track record.

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EU Commission ends ferroalloy-tariff threat on India

The panel said while some imports from India were dumped, they weren’t necessarily the cause of ‘material injury’ suffered by the EU silicomanganese industry

The European Union ended a threat to impose tariffs on a ferroalloy from India, the latest in a series of trade measures favouring steel producers in Europe.

The European Commission closed a probe into whether Indian exporters of silicomanganese — used by EU steelmakers such as ArcelorMittal and Salzgitter AG — sold it in the 28-nation bloc below cost, a practice known as dumping. The commission said that while some imports from India were dumped, they weren’t necessarily the cause of “material injury” suffered by the European silicomanganese industry.

“Hardly any undercutting was found,” the commission, the EU’s executive arm in Brussels, said on Thursday in the Official Journal. “A causal link between the dumped imports and the injurious situation of the union industry could not be established.”

Indian exporters including Modern India Con-Cast Ltd. and Indsil Hydro Power and Manganese Ltd. have a combined 23% to 30% of the EU silicomanganese market, said the commission. The other major foreign suppliers of silicomanganese to the EU are Norway, Ukraine and South Africa, according to the commission.

Chinese steel

The decision against imposing anti-dumping duties on silicomanganese from India follows EU efforts to curb competition for European steel manufacturers by introducing or threatening to introduce more anti-dumping levies on steel from China. Overcapacity at Chinese mills, which account for about half of global steel production, has left European competitors clamoring for extra EU trade protection.

The probe covering silicomanganese from India was opened in December 2014 and stemmed from a dumping complaint by an association called Euroalliages on behalf of three EU silicomanganese manufacturers. In such investigations, the commission has nine months to decide whether to introduce provisional anti-dumping duties and 15 months to decide on any “definitive” five-year levies. In this case, no provisional measures were introduced.

Mr. Vinay Dalmia, representing Indian exporter of Ferroalloys thanks EU Commission for the patience hearing and arriving at the right decision in the interest of the Industries. Mr. Dalmia further mentioned that it was a great experience to deal with the Investigation team during their visit to India.

UK exposed to steel deluge as US clamps down on Chinese imports

The UK’s embattled steel sector faces fresh pressure after the US government stepped in to protect its domestic industry against the growing glut of cheap Chinese supply, industry groups have warned.

UK steel producers have been dealt a double blow by the US plans to impose crippling import duties of up to 266pc against Chinese companies, and around 30pc against UK steel makers. This could result in more Chinese exports being diverted to Europe while making it more expensive for UK firms to sell their wares in the US.

The UK steel industry’s largest trade union Community said: “We are drowning in this flood of Chinese imports and the US action will only serve to divert more Chinese steel towards Europe.

“Unless the Secretary of State [for Business, Innovation and Skills, Sajid Javid] is prepared to join others in Europe and stand up for our industry soon, the debate will be over as we will have no industry left to save.”

Union boss Roy Rickhuss said the “enormous” US tariffs reflect the true cost of unfairly traded steel imports in contrast with the “measly” 16pc tariff imposed by Brussels in a bid to level the playing field for European producers.

“This enormous difference demonstrates that the global market is not free or fair,” Mr Rickhuss said.

Industry group UK Steel branded European efforts to date "inadequate" to tackle the growing pressure on steel mills. 

UK Steel director Gareth Stace said: “The US is showing the way in which to deal with under-priced, unfairly traded and state supported imports from China. It is acting decisively, swiftly and at a level that stops China dumping steel with impunity. By contrast, the meek and mild response in the EU is looking increasingly inadequate.

It begs the question why the UK Government continues to block EU-level attempts to impose higher tariffs. Warm words and limited incremental action are not enough given the crisis conditions faced by steel makers across Europe today,” he added.

The latest rules are designed to defend the US domestic market against cheap steel imports from firms in Brazil, India, South Korea, Russia, Japan and the UK, which will all now face steeper charges for sending cold-rolled steel to America. But the steepest margins levies will be levelled against state-subsidised Chinese steel producers.

By contrast the EU has been slow to react to the threat of rising global supply despite growing calls for protection as steel mills are forced to slash jobs and face an increasingly uncertain future.

Tata Steel’s former European boss Karl Koehler has blasted European Commission’s efforts to fight the unfair competition from heavily-subsidised Russian and Chinese steel as “slow and half-hearted”.

Under the new US plans, Tata Steel will face a 31.39pc duty on exports to the country while fellow UK steel producer Caparo Precision Strip has been given a dumping margin of 12.62pc. All other UK producers will face a levy of 28.05pc.

Peter Brennan, European editor at steel industry data provider Platts, said Europe is increasingly vulnerable to global market pressures by lagging behind the US moves to protect producers.

“The US is one of the more aggressive when it comes to protectionist measures. As a relatively isolated market they can keep out imports in a way that European countries can’t.

"As a result Europe is certainly more susceptible to imports, if only because it takes twice as long for 28 nations to agree a stance as it takes the US to make a single decision."

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News By : Jillian Ambrose, 
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