Steel News

Page 1 of 32
March 20, 2016
TODAY'S TOP STORIES
HIGHLIGHTS: China steel price volatility, EU to take

tougher duty line, Krakatau pain...
WEEKLY SCRAP WRAP: Global scrap prices continue

surge
IRON ORE PRICES: Benchmark index rises above $57 per

tonne cfr
CONTENT
Global
North America
Daily Prices
Middle East
Australia
Weekly Prices
Asia
Europe
Latin America
Indices
CIS and Russia
UK steel industry dismayed by lack of government

support in Budget
Australia gets tough on alloyed steel to deter
circumvention
GLOBAL
Flat Products
Flat Products Trade Log, March 18, 2016

Long Products
Long Products Trade Log, March 18, 2016

Semi-Finished
Semi-finished Products Trade Log, March 18, 2016

Scrap
WEEKLY SCRAP WRAP: Global scrap prices continue surge
DAILY SCRAP REPORT: Late deep-sea deals nudge indices downward

Raw Materials
IRON ORE PRICES: Benchmark index rises above $57 per tonne cfr
Seaborne iron ore prices up, but trading slows down ahead of weekend
Raw Materials Trade Log, March 18, 2016
Industry & Companies
HIGHLIGHTS: China steel price volatility, EU to take tougher duty line, Krakatau
pain...
Peabody faces bankruptcy amid saturated coal market
ASIA
Flat Products
Chinas spot HRC prices end week flat after market zig-zag
Benxi Iron & Steel lifts HRC, CRC prices for April delivery
Long Products
Chinas spot rebar market up on billet rally
DAILY INDICES
Title
Index
Index of spot market Iron Ore prices

delivered to China, normalized to
Qingdao and 62% Fe US $ per tonne
Daily
57.5
Daily Metal Bulletin Ferrous scrap Index

HMS 1&2 (80:20 mix) (North Europe
219.14
material) $ per tonne cfr Turkey
MB Steel First Coking Coal Index Premium Hard Coking Coal $ per tonne
CFR Jingtang
MB Steel First Coking Coal Index - Hard

Coking Coal $ per tonne CFR Jingtang
MB Steel First Coking Coal Index Premium Hard Coking Coal $ per tonne
FOB DBCT
MB Steel First Coking Coal Index - Hard

Coking Coal $ per tonne FOB DBCT
86.25
82.63
85.52
76.8
DAILY PRICES
Title
Low High
Eastern China domestic hot rolled

coil yuan per tonne ex-warehouse
2380 2420
Eastern China domestic rebar yuan

2200 2230
per tonne ex-warehouse
Northern China Tangshan

Domestic Billet ex-works Yuan per
tonne
1910 1910
Scrap
Scrap import prices in India stable as UK, US sellers target other countries
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3/21/2016
Page 2 of 32
South Korean import scrap prices up $22-27 on Japan, Russia deals

US container scrap prices approaching $200 per tonne cfr in Taiwan
Raw Materials
Rising seaborne coking coal prices leave participants in a bind

Stainless & Special Steels
East Asian stainless steel market flat as participants await cues

Daewoo changes name to Posco Daewoo in bid for synergy with steelmaker
China AM: Futures edge up on strengthening of spot prices
MIDDLE EAST
Flat Products
Turkish exporters slam US methodology in HRC anti-dumping case

Turkish domestic HRC prices keep rising, CRC down by $20
Turkish coated coil prices dip on lack of demand
Weak demand, imminent holiday keep Iranian steel prices on hold

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

Scrap
Germany sees steel scrap shipments fall 7.5% in 2015
UK stainless scrap prices steady after nickel rise, sterling boost

Stainless & Special Steels
EU stainless market too weak for base price rises, Damstahl says
EU stainless base prices unchanged amid lower market activity
KVV Group mothballs KVV Liepajas Metalurgs mill in Latvia
UK steel industry dismayed by lack of government support in Budget

Spains crude steel output up by 4.2% in 2015
RUSSIA & CIS
Flat Products
MMK will build new 450,000-tpy HDG line by 2018

Tube & Pipe
OMK to invest $175m into OCTG production in Russia

Mechels first deputy ceo quits 'to pursue own projects'

NORTH AMERICA
End Users
Urbanisation means less steel in US construction, AISC says

More US HSS mills join years third price increase
WEEKLY PRICES
Title
Turkey import billet $ per tonne

cfr main port
Turkey import hot rolled coil $
per tonne cfr main port
Turkey import cold rolled coil $

Turkey export billet $ per tonne

fob main port
Turkey export rebar $ per tonne

fob main port
Turkey export wire rod (mesh
quality) $ per tonne fob main
port
Turkey export merchant bar $

per tonne fob main Turkish port
Turkey export hot rolled coil $
per tonne fob main port
Turkey domestic billet $ per
tonne exw
Turkey domestic rebar $ per

tonne exw
Turkey domestic wire rod

(mesh quality) $ per tonne exw
Turkey domestic hot rolled coil

$ per tonne exw
Turkey domestic cold rolled
coil $ per tonne exw
Turkey domestic hot dip
galvanized $ per tonne exworks
Turkey domestic prepainted

galvanized steel $ per tonne ex
works
Latin America export billet $
Latin America export slab $ per

tonne fob main port
Latin America export rebar $
Latin America export wire rod

(mesh quality) $ per tonne fob
main port
Latin America export heavy

plate (thicker than 10mm) $ per
tonne fob main port
Latin America export hot rolled
coil (dry) $ per tonne fob main
port
Latin America export cold

rolled coil $ per tonne fob main
port
Latin America export hot-dip
galvanized coil $ per tonne fob
main port
South America plate import $
Low
High
340
345
310
350
380
410
340
350
380
385
400
410
380
400
390
400
350
355
385
400
410
420
410
430
500
520
670
720
760
810
260
270
270
290
290
300
290
300
400
425
300
310
350
380
470
520
360
385
3/21/2016
Page 3 of 32
LATIN AMERICA
Flat Products
Flat steel import prices up again in South America

Semi-Finished
Latin American slab export prices increase on reduced availability

Raw Materials
Venezuela's HBI export market quiet as energy, water crisis grips nation
Supply Chain
Vale, China COSCO sign 27-year deal for iron ore shipping
Brazil's Usiminas lays off workers at Cubato, halts flat steel output
Usiminas signs deals with creditors to suspend debt payments
AUSTRALIA
Australia gets tough on alloyed steel to deter circumvention

GLOBAL
Flat Products Trade Log, March 18, 2016

Latest transactions: HRC, HDG
Hot rolled coil
China, export, hot rolled coil, offered at $380-400 per tonne cfr, to South America.
Turkey, domestic, hot rolled coil, traded at $410-430 per tonne ex-works, May production.
Turkey, domestic, hot rolled coil, offered at $440-450 per tonne ex-works, May production.
Turkey, export, hot rolled coil, offered at $400 per tonne fob.
Russia, export, hot rolled coil, offered at $350 per tonne cfr, to Turkey.
East China, domestic, commercial-grade HRC (4.5-12mm), traded at 2,380-2,420 yuan ($367-374) per
tonne, including VAT.
North China, domestic, commercial-grade HRC (4.5-12mm), traded at 2,380-2,400 yuan ($367-371) per
tonne, including VAT.
Cold rolled coil
Russia, export, cold rolled coil, offered at $410 per tonne cfr, to Turkey.
Turkey, domestic, cold rolled coil, traded at $500-520 per tonne ex-works.
Turkey, domestic, cold rolled coil, offered at $500-540 per tonne ex-works.
Hot dipped galvanized coil
China, export, hot dipped galvanized coil, offered at $570 per tonne cfr, to Brazil.
China, export, hot dipped galvanized coil, offered at $550 per tonne cfr, to Colombia.
Turkey, domestic, hot dipped galvanized coil (0.50mm), traded at $670-720 per tonne ex-works.
Turkey, domestic, hot dipped galvanized coil (0.50mm), offered at $680-720 per tonne ex-works.
Pre-painted galvanized coil
Turkey, domestic, pre-painted galvanized coil (colour-coated coil) (0.50mm, 9002 colour code), traded at
per tonne cfr main ports
South America import hot

rolled coil $ per tonne cfr main
ports
South America import cold
rolled coil $ per tonne cfr main
ports
South America import hot dip
galvanized coil $ per tonne cfr
main ports
USA import rebar $ per short
ton cfr Gulf
USA domestic rebar $ per short

ton fob mill
USA domestic hot rolled sheet
$ per short ton fob mill
USA domestic cold rolled sheet

$ per short ton fob mill
China export rebar $ per tonne
fob main port
China export wire rod (mesh
quality) $ per tonne fob main
port
China export heavy plate $ per

tonne fob main port
China export hot rolled coil $
China export cold rolled coil $

China export galvanized coil
(1mm) $ per tonne fob main
port
Eastern China domestic rebar

yuan per tonne ex-warehouse
Eastern China domestic wire
rod (mesh quality) yuan per
tonne ex-warehouse
Eastern China domestic
sections yuan per tonne exwarehouse
Eastern China domestic plate

Eastern China domestic hot
rolled coil yuan per tonne exwarehouse
Eastern China domestic cold
Eastern China domestic hot-dip

galvanized coil yuan per tonne
ex-warehouse
Southern China domestic rebar
Southern China domestic wire
rod (mesh quality) yuan per
tonne ex-warehouse
Southern China domestic
sections yuan per tonne exwarehouse
380
400
455
470
550
570
354
363
460
480
420
420
590
590
320
325
310
315
335
345
345
350
360
365
460
465
2200
2230
2210
2400
2250
2300
2500
2520
2380
2420
3100
3200
3600
3650
2250
2320
2280
2360
2350
2400
Southern China domestic plate
3/21/2016
Page 4 of 32
$760-810 per tonne ex-works.

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Long Products Trade Log, March 18, 2016

Latest transaction: rebar
Rebar
Turkey, export, rebar, traded at $392-395 per tonne cfr, theoretical weight basis, to the UAE and Oman.
East China, domestic, grade-III 16-25mm rebar, traded at 2,200-2,230 yuan ($340-344) per tonne,
including VAT.
North China, domestic, grade-III 16-25mm rebar, traded at 2,190-2,200 yuan ($338-340) per tonne,
including VAT.
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Semi-finished Products Trade Log, March 18, 2016

Latest transaction: slab
Slab
Brazil, export, slab, traded at $290 per tonne fob.
Billet
Russia (Metalloinvest), export, billet, offered at $330-333 per tonne fob Black Sea.
Ukraine (ArcelorMittal Kryvyi Rih), export, billet, offered at $332 per tonne fob Black Sea.
Ukraine (Elektrostal), export, billet, offered at $320-325 per tonne fob Mariupol (Azov Sea).
Kazakhstan (Casting), export, billet, offered at $280 per tonne fob Aktau (Caspian Sea).
Kazakhstan (Casting), export, billet, offered at $325 per tonne cfr Egypt, via Black Sea.
Tangshan, domestic, billet, traded at 1,910 yuan ($295) per tonne, including VAT, 3pm Beijing.
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WEEKLY SCRAP WRAP: Global scrap prices continue surge
Scrap prices in the global markets continued to surge upward in most of the major markets in the working
week from Monday March 14 to Friday March 18.
Turkey imports
Turkish imported scrap prices have risen by almost $10 per tonne over the past week, with the mills in
the country continuing to book deep-sea scrap at higher prices.
A steel producer in the Iskenderun region booked a European cargo, comprising 15,000 tonnes of HMS
1&2 (75:25) and 10,000 tonnes of bonus grade scrap at an average price of $227 per tonne cfr, on March
18.
Another steel mill in the Marmara region also booked a European cargo, comprising 15,000 tonnes of
HMS 1&2 (75:25), 10,000 tonnes of shredded, 7,000 tonnes of P&S, 4,000 tonnes of busheling, 3,600
tonnes of HMS 1, and 1,600 tonnes of new auto bundles at an average price of $217.84 per tonne cfr,
Southern China domestic hot

Southern China domestic cold

Southern China domestic hotdip galvanized coil yuan per
tonne ex-warehouse
Northern China Tangshan

Domestic Billet ex-works Yuan
per tonne
Northern China Domestic
Rebar ex-warehouse Yuan per
tonne
Northern China Domestic Hot

Rolled Coil ex-warehouse Yuan
per tonne
India import heavy plate (2060mm) $ per tonne cfr main
port
India import hot rolled coil $
India import hot rolled coil (CR

grade) $ per tonne cfr main port
India import cold rolled coil $
India export billet $ per tonne

fob main port
India export heavy plate (1240mm) $ per tonne fob main
port
India export hot rolled coil

(commodity) $ per tonne fob
main port
India export hot-dip galvanized

coil $ per tonne fob main port
Indian domestic billet rupees
per tonne ex-works
India domestic heavy plate
rupees per tonne exw
India domestic hot rolled coil

rupees per tonne exw
India domestic cold rolled coil

rupees per tonne ex-works
India domestic hot-dip
galvanized coil rupees per
tonne exw
India domestic rebar rupees

per tonne ex works
India domestic direct reduced

iron rupees per tonne exw
Asia grade 304 stainless steel

cold rolled coil (2mm 2B) $ per
tonne cif East Asian port
Asia grade 304 stainless steel
hot rolled sheet $ per tonne cif
East Asian port
2470
2550
2380
2420
3200
3280
3450
3650
1910
1910
2190
2200
2380
2400
370
380
360
370
360
370
445
450
270
275
400
405
400
405
540
545
22100
22200
26000
26500
28500
29000
33500
34000
40000
41000
25000
25100
12900
13000
1650
1700
1600
1650
China domestic grade 304
3/21/2016
Page 5 of 32
also on Friday.
A steel producer in Izmir booked a Baltic Sea cargo, comprising 25,000 tonnes of HMS 1&2 (80:20) at
$228.50 per tonne and 5,000 tonnes of bonus at $238.50 per tonne cfr, on March 18.
A second steel mill in the Marmara region booked a US cargo, comprising 10,000 tonnes of HMS 1&2
(80:20) at $229 per tonne, 15,000 tonnes of shredded at $234 per tonne and 15,000 tonnes of bonus at
$239 per tonne cfr, also on March 18.
A steel producer in Iskenderun booked a US cargo, comprising 14,000 tonnes of HMS 1&2 (80:20) at
$229 per tonne, 20,000 tonnes of shredded at $234 per tonne and 6,000 tonnes of P&S at $239 per
tonne cfr, on March 16.
However, market participants were still cautious about the strong prices as finished steel market prices
were not supportive of them.
I do not believe in these prices. Finished steel, iron ore and billet do not support these prices, a trader
said.
The market has lost control. Suppliers are already talking about $250 per tonne cfr, a Turkish source
said.
US exports
The US bulk scrap export market was quiet until March 16, when the US ferrous scrap index closed as
the mills in Turkey started to book US cargoes.
Continental European scrap exporters are apparently short of inventory for older, cheaper orders, one
US East Coast exporter source said.
In spite of not having enough scrap to cover existing orders, the Europeans are actively making bids on
potential new deals due to attractive prices, he added.
Taiwan imports
Import prices for containerised HMS-grade scrap have continued to surge in Taiwan to their highest
levels in more than eight months, amid an enduring supply shortage from the USA.
Prices could soon reach the $200-per-tonne-cfr mark last seen in the East Asian territory in early July
last year according to several sources.
Bookings were heard as low as $185-187 per tonne cfr in the beginning of the week for small cargoes,
before moving up to $190-193 per tonne cfr and finally $195 per tonne cfr by the end of the week, while
offer prices were close to $200 per tonne cfr on Friday.
South Korea imports
Import prices for bulk scrap cargoes brought into South Korea have gone up by as much as $22-27 per
tonne over the past two weeks, following the conclusion of new bookings for cargoes from Japan and
Russia.
At least two local electric arc furnace (EAF) mills booked cargoes of A3-grade scrap from Russia at $199
per tonne cfr this week, for volumes totalling as much as 70,000 tonnes.
The price was $27 higher in comparison than the previous deal for similar material of the same origin,
closed at $172 per tonne cfr early in March.
South Korean EAF mills also purchased cargoes of Japanese H2-grade scrap this week at prices ranging
between 19,500 ($174) and 19,900 ($178) per tonne fob Tokyo Bay. This was up by 2,500-2,900
($22-26) from prices as low as 17,000 ($152) per tonne fob two weeks ago.
Adding freight rates as low as $18-20 per tonne, the new booking prices would equate to $192-198 per
tonne cfr, one South Korean market participant estimated on Friday, although he acknowledged that the
yen exchange rate has been fluctuating recently.
India imports
Prices for the HMS grade and shredded scrap imported into India have remained largely stable, with
small fluctuations, over the past week.
Generally, sellers from the USA and the UK are holding back from making offers into India as they can
sell at better prices to Turkey currently, one India-based trader said.
stainless steel cold rolled coil

(2mm) yuan per tonne inwarehouse
China domestic grade 430 2mm

stainless steel cold rolled coil
yuan per tonne in-warehouse
EU export grade 304 stainless
steel cold rolled sheet (2mm)
per tonne fob North European
port
Europe domestic grade 304

stainless steel cold rolled sheet
(2mm) base price per tonne
del
stainless steel cold rolled sheet
(2mm) alloy surcharge per
tonne
stainless steel bright bar base
price per tonne del
stainless steel bright bar alloy
surcharge per tonne
EU domestic 316 2mm cold
rolled stainless sheet base
price delivered per tonne
EU domestic 316 2mm cold
rolled stainless sheet alloy
surcharge delivered per
tonne
EU pig iron imports $ per tonne

cif Italy
Venezuelan export hot
briquetted iron $ per tonne fob
main port
Latin America exports pig iron
$ per tonne fob Vitorio/Rio
Brazil
$ per tonne fob Ponta da
Madeira Brazil
USA import pig iron $ per tonne

cfr Gulf
CIS export pig iron Baltic Sea $
CIS export pig iron Black Sea $
China domestic pig iron yuan
per tonne del warehouse
UK domestic ferrous scrap 5C

Loose Old Light per tonne del
consumers
Daily Metal Bulletin Ferrous
scrap Index HMS 1&2 (80:20
mix) (North Europe material) $
per tonne cfr Turkey

mix) (USA material) $ per tonne
cfr Turkey
11400
11600
6600
6700
1794
1917
1060
1090
734
827
790
820
976
1023
1360
1390
1039
1134
225
230
180
200
185
195
195
205
210
220
245
250
215
235
1570
1580
45
55
219.14 219.14
227.06 227.06
An offer for UK-origin shredded scrap was heard at $230 per tonne cfr Nhava Sheva. That was down
3/21/2016
Page 6 of 32
from an offer of $230-235 per tonne cfr heard last week.

No new offers or deals for USA-origin shredded scrap were heard over the past week. Offers were earlier
heard at $225-235 per tonne per tonne cfr Nhava Sheva, while some deals for USA-origin shredded
scrap were earlier heard at $218 per tonne cfr.
With the new prices in Turkey, I dont think suppliers will want to sell much to India, while the Indian
buyers are already struggling to buy at the current prices, one UAE-based trader said.
Turkey domestic
Turkish domestic auto bundle and ship scrap prices continued to strengthen in line with rising imported
scrap prices in the beginning of the week.
However, mill sources were still cautious about rising prices as the finished steel market was still limited.
Turkey import ferrous scrap

HMS 1&2 (75:25 mix) $ per
tonne cfr main port
Turkey import ferrous scrap

shredded $ per tonne cfr main
Turkish port
Turkey domestic auto bundle
scrap Turkish lira per tonne
delivered
Turkey domestic melting scrap

from shipbreaking $ per tonne
delivered
Taiwan import ferrous scrap
HMS 1&2 (80:20 mix) (USA
material) $ per tonne cfr main
port
Metal Bulletin Ferrous Scrap

Index shredded $ per tonne cfr
India
India import ferrous scrap HMS

1&2 (80:20 mix) $ per tonne cfr
Nhava Sheva
Metal Bulletin Ferrous Scrap
Index HMS 1&2 (80:20 mix) $
per tonne fob Rotterdam
Ferrous scrap Rotterdam

export HMS 1&2 (70:30 mix) $
per tonne fob Rotterdam
Ferrous scrap Rotterdam
export shredded $ per tonne
fob Rotterdam
UK export ferrous scrap HMS

1&2 (80:20 mix) fob main port
UK export ferrous scrap

shredded $ per tonne fob main
port
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DAILY SCRAP REPORT: Late deep-sea deals nudge indices

downward
The daily scrap index for Northern European-origin material remained almost flat on Friday March 18,
while the index for USA-origin material went down slightly with news of two fresh deep-sea deals.
Steel Firsts daily index for HMS 1&2 (80:20) from Northern Europe closed at $219.14 per tonne cfr
Turkey, up by only $0.01 per tonne day-on-day.
The index for USA-origin material of the same grade closed at $227.06 per tonne cfr Turkey, down by
$0.92 per tonne day-on-day.
This put the premium for US HMS 1&2 (80:20) over Northern European scrap at $7.92 per tonne on
March 18.
A steel producer in the Iskenderun region booked a European cargo, comprising 15,000 tonnes of HMS
1&2 (75:25) and 10,000 tonnes of bonus grade scrap at an average price of $227 per tonne cfr, on March
18.
Another steel mill in the Marmara region also booked a European cargo, comprising 15,000 tonnes of
HMS 1&2 (75:25), 10,000 tonnes of shredded, 7,000 tonnes of P&S, 4,000 tonnes of busheling, 3,600
tonnes of HMS 1, and 1,600 tonnes of new auto bundles at an average price of $217.84 per tonne cfr,
also on Friday.
However, market participants were still cautious about the strong prices as finished steel market prices
China domestic heavy scrap

yuan per tonne del mill
UK domestic 18/8 solids
wholesale per tonne del
merchants
UK domestic 18/8 turnings

wholesale per tonne del
merchants
UK domestic stainless steel

scrap 12-13% Cr Solids per
tonne del merchants
UK domestic stainless steel
scrap 16-17% Cr solids per
tonne del merchants
Europe import 18/8 solids per

tonne cif main European port
Europe import 18/8 turnings
per tonne cif main European
port
Index of spot market Iron Ore
prices delivered to China,
normalized to Qingdao and
62% Fe US $ per tonne Daily
Iron Ore Concentrate Index

(66% Fe) cfr Qingdao $ per dry
213
218
222
234
550
590
213
215
185
195
227.14 227.14
215
220
204.05 204.05
204
209
213
225
204
216
216
226
1170
1210
580
610
495
520
55
65
85
105
850
870
730
750
57.5
57.5
60.17
60.17
3/21/2016
Page 7 of 32
were not supportive of them, Steel First was told.

The market has lost its control. Suppliers are already talking about $250 per tonne cfr, a Turkish source
said.
Meanwhile, two more deep-sea deals came to light after the index closed.
A steel producer in Izmir booked a Baltic Sea cargo, comprising HMS 1&2 (80:20) at $228.50 per tonne
and bonus at $238.50 per tonne cfr, while another steel mill in Marmara booked a US cargo, comprising
HMS 1&2 (80:20) at $229 per tonne, shredded at $234 per tonne and bonus at $239 per tonne cfr.
The cargo breakdowns were not revealed at the time of publication.
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IRON ORE PRICES: Benchmark index rises above $57 per tonne
cfr
Here are the key prices in the iron ore market on Friday March 18, as at 6.30pm Singapore time.
Key drivers
Iron ore futures on the Dalian Commodity Exchange rose to its daily upper limit during the day, and lifted
prices across the board.
Metal Bulletin's 62% Fe Iron Ore Index
Today: $57.50 per tonne cfr Qingdao
Daily change: up by $1.41 per tonne
Month-to-date average: $56.06 per tonne
Metal Bulletin's 58% Fe Premium Index
Today: $51.40 per tonne cfr Qingdao
Daily change: up by $0.05 per tonne
Month-to-date average: $50.49 per tonne
Dalian Commodity Exchange's most-traded May contract
Today's close: 449.50 yuan ($69) per tonne
Change from previous close: up by 14 yuan ($2) per tonne
Over-the-counter trades of 62% Fe swaps/futures
Mar $55.50, $55.75
Apr $54.30, $54.50, $54.75, $54.90, $55.00, $55.15, $55.20, $55.25, $55.30, $55.35, $55.40, $55.50
May $52.50, $52.75, $53.00, $53.10, $53.20, $53.25, $53.30, $53.35, $53.45, $53.50, $53.75, $53.80,
$54.00, $54.50
Jun $51.45, $51.50, $51.75, $52.00, $52.25
Jul $50.25
Q2 $53.20, $53.25, $53.50, $53.90, $54.00
Q3 $49.00, $49.20, $49.25, $49.35, $49.47, $49.50, $50.00
Q4 $45.35, $45.80, $46.00, $46.25, $46.50, $46.75
2017 $40.00, $40.25, $40.50, $40.75, $41.00, $41.50,
Mar/Apr $0.25, $0.50
Apr/May $1.60, $1.65, $1.70, $1.75
Apr/Jun $3.30
May/Jun $1.60, $1.65
Q2/Q3 $4.00, $4.15, $4.25
Q3/Q4 $3.00
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Seaborne iron ore prices up, but trading slows down ahead of
weekend
A boost in steel prices propped up the seaborne iron ore market further on Friday March 18, though
metric tonne weekly index
Iron Ore Pellet Index cfr

Qingdao (65% Fe) $ per dry
metric tonne weekly index
MB Steel First Coking Coal

Index - Premium Hard Coking
Coal $ per tonne CFR Jingtang
Index - Hard Coking Coal $ per
tonne CFR Jingtang
Index - Premium Hard Coking
Coal $ per tonne FOB DBCT

Index - Hard Coking Coal $ per
tonne FOB DBCT
China Hard Coking Coal Shanxi

spot market domestic delivered
Yuan per tonne
mix) (North Europe material) $
per tonne cfr Turkey
CIS export pig iron Baltic Sea $

CIS export pig iron Black Sea $
Venezuelan export hot
briquetted iron $ per tonne fob
main port
$ per tonne fob Vitorio/Rio
Brazil
$ per tonne fob Ponta da
Madeira Brazil
China domestic pig iron yuan
per tonne del warehouse
India domestic direct reduced

iron rupees per tonne exw
EU pig iron imports $ per tonne

cif Italy
Tin settlement LME daily
official $ per tonne
Zinc settlement LME daily

official $ per tonne
Cobalt 3 months min 99.3%

official London Metal Exchange
$ per tonne
Molybdenum 3 months official
London Metal Exchange $ per
tonne
Ferro-silicon export from
mainland China, Min 75% Si,
7.5% C, $/tonne, fob
Ferro-chrome China import

charge chrome 50% Cr index,
CIF Shanghai, duty unpaid, $
per Ib contained chrome
72.36
72.36
86.25
86.25
82.63
82.63
85.52
85.52
76.8
76.8
550
760
219.14 219.14
245
250
215
235
180
200
185
195
195
205
1570
1580
12900
13000
225
230
17155
17155
1847.5 1847.5
22925
23425
11700
12200
1070
1150
0.55
0.55
Ferro-manganese basis 78%

Mn (Scale pro rata) - Standard
3/21/2016
Page 8 of 32
buying activity has dipped with buyers withdrawing to the sidelines.

Key drivers
In Chinas Tangshan region, the price of billet rose 90 yuan ($14) per tonne during the day to 1,910 yuan
($295) per tonne on Friday, while rebar prices in the countrys northern region surged 130 yuan ($20) per
tonne to 2,190-2,200 yuan ($338-340) per tonne.
The price surge provided support to the seaborne iron ore market, resulting in cargoes changing hands at
higher levels, though the rise has led to some buyers hesitating.
Quote of the day
Its the last day of the week, and enquiries were not as active as the prior day, since some mill buyers
are choosing to stay out of the market temporarily to see which direction it goes, a Beijing-based trader
told Steel First.
Trades
Global Ore reported a transaction involving a 170,000-tonne April-arrival cargo of 62% Fe Pilbara Blend
fines that was concluded at $57 per tonne cfr China.
7.5% C major European

destinations per tonne
Ferro-molybdenum basis 65%

min, in-warehouse Rotterdam,
$ per kg Mo
Manganese Ore Index 44% Mn,

Cif Tianjin $ per dmtu of metal
contained
Manganese Ore Index 37% Mn,
Fob Port Elizabeth $ per dmtu
of metal contained
610
645
13.4
13.8
3.64
3.64
3.62
3.62
Click here for price disclaimer
Vale sold a 170,000-tonne April-arrival shipment of 65% Fe Carajas iron ore fines at $61 per tonne cfr
China on Beijing Iron Ore Trading Center (Corex).
The Brazilian miner sold another 170,000-tonne April-arrival cargo of 63.5% Fe Brazilian Blend fines at
the May average of Metal Bulletin and Mysteels 62% Fe indices plus a premium of $3.50 per tonne.
Rio Tinto offered a 170,000-tonne cargo of 61% Fe Pilbara Blend fines, laycan April 5-14, at $58.50 per
tonne cfr on Corex, which had not received any bids at the time of writing.
BHP Billiton offered a 90,000-tonne shipment of 57.3% Fe Yandi fines at $51.50 per tonne cfr China on
the same platform, which received a bid of $50.65 per tonne cfr. But the miner withdrew the offer late in
the afternoon.
Port prices
Pilbara Blend fines were being traded at 420-430 yuan per wet tonne during the day at ports in Shandong
province, compared with 410-415 yuan per wet tonne on Thursday.
The latest prices are equivalent to $56-57 per tonne cfr China in the seaborne market.
Dalian Commodity Exchange - afternoon close
The most-traded May iron ore futures contract rose to its upper limit of 451.50 yuan ($70) per tonne
during the day, before closing at 449.50 yuan ($69) per tonne at the end of Friday, up 14 yuan ($2) per
tonne from Thursdays closing price.
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Raw Materials Trade Log, March 18, 2016

Latest transaction: Iron ore
Iron ore
Global Ore, 170,000 tonnes, 62% Fe Pilbara Blend fines, sold at $57 per tonne cfr China, April arrival.
Beijing Iron Ore Trading Center, 170,000 tonnes, 65% Fe Carajas iron ore fines, sold at $61 per tonne cfr
China, April arrival.
Global Ore, 170,000 tonnes, 63.5% Fe Brazilian Blend fines, sold at May average of Metal Bulletin and
Mysteel's 62% Fe indices plus premium of $3.50 per tonne, April arrival.
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3/21/2016
Page 9 of 32
line, Krakatau pain...
Editor Vera Blei reviews the main news covered by Steel First over the past week.
Domestic steel prices in China as well as iron ore benchmark prices embarked on another rollercoaster
ride this week.
The Chinese domestic hot rolled coil (HRC) market surged again on Friday March 18 as further increase
in billet and futures values strengthened market sentiment.
This meant prices were unchanged on the week following several days of dramatic fluctuations, while
buying activity was relatively robust, as participants expect further price rises next week.
After sliding in the first half of this week, Chinas spot rebar prices bounced back in the second half amid
gains in Tangshans billet market.
In our weekly Steel First Outlook column, Metal Bulletin Research (MBR) looked at the international rebar
markets in light of the recent price increases imposed by China, with a view on whether prices have
bottomed.
Meanwhile, Metal Bulletins benchmark 62% Fe iron ore index took a tumble early in the week to $52.88
per tonne cfr Qingdao, only to pick up again to close at $57.50 per tonne cfr on Friday March 18, to end
the week up $0.41 week-on-week.
Trade policy
The European Commission (EC) is aiming to cut the consultation process for anti-dumping investigations
by up to two months by dropping the 'lesser-duty rule', increasing the use of written consultations,
applying stricter deadlines for the submission of evidence and grouping multiple hearings together.
The EC has started bilateral talks with major steel-producing nations, with the aim of tackling global
overcapacity.
The ECs Steel Contact Group held meetings with Japan and China, on March 8 and 10, respectively,
and has set up further meetings with both countries, as well as with India, Russia, Turkey and the USA.
Indias Directorate General of Safeguards has recommended that the country impose of safeguarding
duty on imports of hot rolled coil (HRC) for a period of three years.
The Turkish Ministry of Economy announced a 30.10% dumping margin for colour-coated coil from
China.
Ministers of commerce and industry of member states of the Gulf Co-operation Council (GCC) will meet
soon to discuss a possible increase in the import duty on rebar to 15%, market participants have told
Steel First.
Around the world
Krakatau Steel, Indonesias biggest steelmaker, saw its operating loss more than double in 2015 on the
back of big drops in both steel shipment volumes and sales prices.
The company has pushed back the expected commissioning date for its planned 1.5-million-tpy hot strip
mill to the first quarter of 2019.
In Europe, ArcelorMittal is to partially close its Zumrraga long products mill in Spain due to the
exceptionally difficult market conditions.
The decision by Brazilian steelmaker Usiminas to go ahead with a capital increase is not enough to
assure its sustainability, according to analysts.
The company has signed standstill agreements with its main creditor banks to suspend the payment of its
debt obligations for a four-month-period, the Usiminas said on Friday March 18, on the condition that the
capital increase is approved.
And finally, US coal miner Peabody Energy is on the brink of insolvency, after it defaulted on loan
payments worth $1.6 billion.
Shrinking demand from China has left the coal market massively oversupplied, while competition from
cheap shale gas, coupled with increased operating costs due to stricter environmental regulations in the
USA, have put coal companies in the country under increasing pressure.
3/21/2016
Page 10 of 32
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Peabody faces bankruptcy amid saturated coal market
US coal miner Peabody Energy is on the brink of insolvency, after it defaulted on loan payments worth
$1.6 billion.
If our cash flows and capital resources are insufficient to fund our debt services obligations, we may be
forced to sell assets, seek additional capital to attempt to meet our debt service and other obligations or
seek to restructure or refinance certain debt obligations, the company said in a 10-K filing a
comprehensive summary of a companys financial performance to the US Securities & Exchange
Commission earlier this week.
Peabody, the worlds largest privately owned coal producer, said it was discussing debt restructuring and
refinancing options with creditors but added that if the measures were unsuccessful, then it would be
required to re-organise [the] company in its entirety, including through bankruptcy proceedings.
Shrinking demand from China has left the coal market massively oversupplied, while competition from
cheap shale gas and increased operating costs from stricter environmental regulations in the USA have
put coal companies in the country under increasing pressure.
Peabody had already announced a slew of cost-cutting measures in 2015, including the termination of
250 workers at its coal mines in Australia.
Its earnings before interest, taxes, depreciation and amortisation (Ebitda) slumped to $53 million in the
fourth quarter of 2015, down from $208 a year earlier.
Peabody sold 15.7 million tonnes of metallurgical coal in 2015, down 9% on the year.
Steel Firsts fob Australia premium hard coking coal index averaged $77.82 per tonne for the fourth
quarter of 2015, down from $113.02 per tonne a year earlier.
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ASIA
Chinas spot HRC prices end week flat after market zig-zag
Chinas spot hot rolled coil market surged again on Friday March 18, although prices were unchanged on
the week following several days of dramatic fluctuations.
Key drivers
Prices rose again on Friday, as the further increase in billet and futures strengthened market sentiment.
Buying activity was relatively robust, as participants expect further price rises next week.
Liaoning-based Benxi Iron & Steel became the latest steelmaker to lift its HRC list prices, with an
increase of 200 yuan ($31) per tonne for April delivery.
Prices ended the week flat in both Shanghai and Beijing, however.
Quote of the day
Sales were generally good today. Some sellers were even tempted to suspend offers this afternoon for
higher prices next week, a Shanghai-based trader told Steel First.
Shanghai Futures Exchange
3/21/2016
Page 11 of 32
The most-traded May HRC futures contract closed at 2,322 yuan ($356) per tonne on Friday, up 59 yuan
($9) per tonne from Thursdays closing price.
Further reading
The Steel First price book contains historical data for HRC prices in eastern China and northern China
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Northeast China steelmaker Benxi Iron & Steel (Benxi) is raising its list prices for hot rolled and cold
rolled coil for April delivery.
The Liaoning-based mill is raising its HRC prices by 200 yuan ($31) per tonne and CRC by 400 yuan
($61) per tonne, it announced late on Thursday March 17.
As a result, Benxi will sell its Q235 5.5mm HRC at 2,440 yuan ($374) per tonne and its SPCC 1.0mm
CRC at 3,250 yuan ($498) per tonne. Both prices are on an ex-works basis excluding VAT.
The steel producers latest pricing policy follows similar moves by fellow north-China mills Anshan Iron &
Steel and Hebei Iron & Steel, buoyed by the recent surge in domestic steel prices.
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Chinas spot rebar market up on billet rally
After the sliding in the first half of this week, Chinas spot rebar prices bounced back in the second half
amid gains in Tangshans billet market.
Key drivers
The continual rise in the price of billet in Tangshan encouraged sellers in Chinas eastern region to raise
their offers. Buying interest also intensified, sending buyers rushing into the market.
The upward momentum in north China was even stronger, which led to some traders halting trading in
the afternoon amid concerns that the sudden surge would not last very long.
However, despite the gains in recent days, the price range in Beijing has only narrowed upwards by 10
yuan ($2) per tonne overall this week, while that in Shanghai is down 60 yuan ($9) per tonne.
Quote of the day
Unlike last week when most traders would take a wait-and-see approach amid the price surge, they are
now selling to lock in the profits, a Shanghai-based trader said.
Billet
As at 3pm, billet was being traded at 1,910 yuan ($295) per tonne including VAT in Tangshan, after major
producers lifted their ex-works prices by 90 yuan ($14) per tonne in the afternoon.
The price remains 110 yuan ($17) per tonne lower than last Friday, however.
The most-traded October rebar futures contract closed at 2,118 yuan ($327) per tonne on Friday, up 40
3/21/2016
Page 12 of 32
yuan ($6) per tonne from the previous days closing price.
The Steel First price book contains historical data for rebar prices in eastern China and northern China
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Scrap import prices in India stable as UK, US sellers target other

countries
Import prices for heavy melt (HMS) and shredded scrap in India remained largely unchanged over the
past week, as US and UK sellers looked elsewhere for higher-value sales.
The relative stability followed price rises of $20-25 per tonne for HMS and $17.46 per tonne for shredded
scrap last week.
Generally, sellers from the USA and the UK are withholding from offers into India as they can sell at
better prices to Turkey currently, one India-based trader said.
Steel First's weekly index for shredded scrap delivered to India closed at $227.14 per tonne cfr Nhava
Sheva on Friday March 18, down by $0.97 from last week's $228.11 per tonne cfr.
An offer for UK-origin shredded scrap was heard at $230 per tonne cfr Nhava Sheva. That was down
from the offer of $230-235 per tonne cfr heard last week.
Bids for UK-origin material were heard at $225 per tonne cfr Nhava Sheva, flat week-on-week.
No new offers or deals for the US-origin shredded scrap were heard over the past week.
Offers were earlier heard at $225-235 per tonne per tonne cfr Nhava Sheva, while deals for USA-origin
shredded scrap were heard at $218 per tonne cfr.
With the new [higher prices] in Turkey, I don't think the suppliers will want to sell much to India, one
UAE-based trader said. Indian buyers are already struggling to buy at the current prices,
HMS grade
Steel First's weekly price assessment for HMS 1&2 (80:20) imported into India was at $215-220 per
tonne cfr Nhava Sheva on Friday March 18, up from $210-220 per tonne cfr a week earlier.
Deals for the Middle East-origin HMS 1&2 (80:20) were heard at $220 per tonne cfr Nhava Sheva, with
offers for the material earlier heard at $215-230 per tonne cfr Nhava Sheva.
An offer for European HMS 1&2 (80:20) was heard at $220 per tonne cfr Nhava Sheva, [but] there is no
buying interest at this level, the UAE-based trader said.
A sale of HMS 1&2 (80:20) from Latin America was heard at $215 per tonne cfr, down from $220 per
tonne cfr for the same material last week.
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South Korean import scrap prices up $22-27 on Japan, Russia

deals
Import prices for bulk scrap cargoes brought into South Korea have gone up by as much as $22-27 per
tonne over the past two weeks, following the conclusion of new bookings for cargoes from Japan and
Russia.
At least two local electric arc furnace (EAF) mills booked cargoes of A3-grade scrap from Russia at $199
per tonne cfr this week, for volumes totalling as much as 70,000 tonnes, sources told Steel First on
Friday March 18.
The price is $27 higher in comparison than the previous deal for similar material of the same origin,
closed at $172 per tonne cfr early in March.
3/21/2016
Page 13 of 32
South Korean EAF mills also purchased cargoes of Japanese H2-grade scrap this week at prices ranging
between 19,500 ($174) and 19,900 ($178) per tonne fob Tokyo Bay. This was up by 2,500-2,900
($22-26) from prices as low as 17,000 ($152) per tonne fob two weeks ago.
Adding freight rates as low as $18-20 per tonne, the new booking prices would equate to $192-198 per
tonne cfr, one South Korean market participant estimated on Friday, though he acknowledged that the
yen exchange rate has been fluctuating recently.
The price is getting close to $200 [per tonne cfr], he said.
There were no reported deals for USA-origin bulk scrap cargoes, with the latest offers heard around
$225-230 per tonne cfr for HMS 1 material.
At first, I presumed the price increase in the scrap market was going to be temporary, but now it seems
the uptrend will continue, the same source in South Korea said.
The continuous pressure from international scrap prices has recently prompted Hyundai Steel, South
Koreas largest EAF steelmaker, to raise its H-beam export prices by $40-50 per tonne.
Elsewhere in Asia, Steel First heard of offers for HMS 1&2 (80:20) bulk cargoes from the USA at around
$230 per tonne cfr in Vietnam.
There was news about a booking taking place in Indonesia at the same $230 per tonne cfr level, although
it was not clear whether the origin of the cargo was the USA or Australia.
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US container scrap prices approaching $200 per tonne cfr in

Taiwan
Import prices for containerised HMS-grade scrap have surged for a third consecutive week in Taiwan to
the highest levels in over eight months, amid an enduring supply shortage from the USA.
Steel Firsts import price assessment for USA-origin HMS 1&2 (80:20) is $185-195 per tonne cfr Taiwan
for the week ended Friday March 18, up $10-15 per tonne from $175-180 per tonne a week ago.
Prices could soon reach the $200-per-tonne-cfr mark last seen in the East Asian territory in early July
last year according to several sources.
My customers are angry, because every week my US suppliers raise offer prices by some $10 [per
tonne] or so, one trader said on Friday.
But when buyers reluctantly accept the higher prices, suppliers from the West Coast of the USA decrease
the available offered volumes as they believe the uptrend will continue in the market, he explained.
Bookings were heard as low as $185-187 per tonne cfr in the beginning of the week for small cargoes,
before moving up to $190-193 per tonne cfr and finally $195 per tonne cfr by the end of the week, several
trader and buyer sources told Steel First.
Offer prices, meanwhile, were reaching levels close to $200 per tonne cfr on Friday.
US suppliers prefer to sell to Vietnam or India, so the offers were getting are for small quantities, up to
1,000 or 2,000 tonnes only, a source at a Taiwanese electric arc furnace (EAF) mill pointed out.
A source at another EAF operator complained that prices had been changing too much, almost on a
daily basis, which makes it more difficult for it to confirm bookings.
Meanwhile, offers for H2-grade scrap from Japan whose prices are usually similar or just $1-2 per
tonne higher than those for HMS 1&2 (80:20) cargoes from the USA were heard as low as $199-202
per tonne cfr earlier this week before moving up to $205-210 per tonne cfr by Friday.
At least one booking has been made at $205 per tonne cfr, sources said.
In South Korea, there were bookings made this week for Japanese H2-grade cargoes that would equate
to levels of around $192-198 per tonne cfr.
3/21/2016
Page 14 of 32
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Rising seaborne coking coal prices leave participants in a bind

The upside in the seaborne hard coking coal spot market continued to surprise participants with
transactions being registered at higher prices on Friday March 18.
A cargo of branded materials traded at $86.50 per tonne fob Australia on physical trading platform Global
Coal, which left both sellers and buyers stumped as to what to do next.
I dont have any bids for our cargoes but I also dont know what levels to offer them at, a source at an
international trading company told Steel First.
He added that the $86.50 per tonne deal would be a reference point for sellers, but end-user buyers have
yet to come to terms with what they were seeing.
Buyers are afraid that if they pay now, the market may fall very quickly after that. Sellers are afraid that if
they sell now, the market might continue to rise, he said.
Sources in Japan said the recent price rise in the spot market was making it very difficult for them to
conclude negotiations for their quarterly contracts. Two miners were heard to have tabled their offers but
mills reaction to these were not known at the time of writing.
In China, steel and iron ore prices saw another comeback with billet rising 90 yuan ($14) per tonne to
trade at 1,910 yuan ($295) per tonne while Metal Bulletins 62% Fe benchmark index rose $1.41 per
tonne to $57.50 per tonne cfr China.
An indicative offer of one premium brand was heard at $87 per tonne cfr China while another, for a
second-tier product, was at $83 per tonne cfr China.
The market seems firm now and it is possible for it to go up further, a Chinese trading source said.
However, he admitted that a decline could happen any time too.
Steel Firsts fob Australia premium hard coking coal index rose $0.64 per tonne on Friday to $85.52 per
tonne while the fob Australia hard coking coal index gained $0.36 per tonne to $76.80 per tonne.
The cfr China indices were both unchanged, at $86.25 per tonne for premium hard coking coal and
$82.63 per tonne for hard coking coal.
On the Dalian Commodity Exchange, the most-traded May coking coal futures contract closed 10.50
yuan ($2) per tonne higher for the day, at 633.50 yuan ($98) per tonne. Similarly, the most-liquid May
coke contract closed 11.50 yuan ($2) per tonne higher, at 772.50 yuan ($119) per tonne.
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The East Asian stainless steel market held steady this week, as participants braced themselves for an
expected list price increase by major Chinese producer Taigang Stainless this weekend.
May/June shipments of benchmark 304 stainless 2mm cold rolled coil were assessed at $1,650-1,700
per tonne cif East Asian port on Friday March 18, unchanged from last week.
According to trading sources, South Korean major Posco lifted its April list prices for 300-series products
by 100,000 Won ($86) per tonne earlier this week.
We are waiting for Taigangs new list prices at the moment, to decide how much we would raise our
offers, a trader based in east China said.
Chinas domestic market is picking up amid recovering demand, and demand in main export destinations
is picking up as well. Although nickel is a bit weak recently, its effect on stainless steel prices is limited
now, he added.
The three-month nickel contract on the London Metal Exchange ended the official trading session on
Thursday March 17 at $8,675-8,700 per tonne, down $80-95 per tonne on the week.
3/21/2016
Page 15 of 32
In Chinas major Wuxi market, prices for benchmark 304 cold rolled coil prices were at 11,400-11,600
yuan ($1,760-1,791) per tonne including VAT on Thursday March 17, the same as Steel First's
assessment last Friday. But the range has widened upwards by 100 yuan ($15) per tonne week-on-week.
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Daewoo changes name to Posco Daewoo in bid for synergy

with steelmaker
South Korean trading firm Daewoo International has changed its name to Posco Daewoo as part of a
new corporate strategy aiming at creating synergies with the worlds fifth-largest steelmaker.
Our company name was changed on Monday March 14 and the main reason is to create [synergy] with
Posco, a spokesman for the trading firm confirmed to Steel First in an email late on Thursday March 17.
The company South Koreas largest general trading house is 60.3% owned by Posco.
An official ceremony to mark the name change and the launch of a new corporate brand strategy is
scheduled for Monday March 21, a second company official told Steel First.
Neither of them provided any further details regarding the synergy that both companies are hoping to
achieve.
Top 3
In a market presentation last month, Posco Daewoo said it wanted to retain its position among the worlds
top three steel-trading companies through cooperation with Posco.
The company traded 8.63 million tonnes of steel products last year, up 2.1% from 8.45 million tonnes in
2014.
It plans to raise this to 15 million tonnes in 2020 by expanding into new markets and making use of a
strategic alliance with Posco, according to the presentation.
In the long term, it also plans to continue extending its business scope from traditional trading to steel
manufacture and distribution.
Apart from steel trading, Posco Daewoo operates a number of coil centres and auto steel sheet
processing centres in countries including Brazil, the USA, Slovenia and Indonesia.
It also trades non-ferrous metals, chemicals and other products, and has two other business segments:
resources development, which mainly comprises business in the oil and gas, mining and agriculture
sectors; and project development, which consist of infrastructure and machinery and plants.
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Chinas steel and steelmaking raw materials futures edged up during morning trading on Friday March
18, amid a largely buoyant physical market.
Futures closing prices morning session
Oct rebar: 2,125 yuan ($328), up 4 yuan ($0.60)
May hot rolled coil: 2,321 yuan ($358), up 13 yuan ($2)
Dalian Commodity Exchange
May iron ore: 449 yuan ($69), up 1 yuan ($0.20)
May coking coal: 633.50 yuan ($98), up 2.50 yuan ($0.40)
Billet
Tangshan billet price: 1,820 yuan ($279) per tonne, unchanged from Thursday afternoon after major
producers lifted ex-works prices by 50 yuan ($8) per tonne.
3/21/2016
Page 16 of 32
Iron ore
Metal Bulletins 62% Fe Iron Ore Index was calculated at $56.09 per tonne cfr on Thursday March 17, up
$2.52 per tonne from the previous day.
Key market news
More steelmakers in northern China have lifted their list prices for April delivery, following the recent spot
market surge. Liaoning-based Benxi Iron & Steel has raised its hot rolled coil price by 200 yuan ($31) per
tonne and that for cold rolled coil by 400 yuan ($61) per tonne.
Domestic steel prices are expected to rise further today, reversing falls seen earlier in the week.
East Asian May/June shipments of benchmark 304 stainless 2mm cold rolled coil traded flat on the week
at $1,650-1,700 per tonne cif East Asian port as participants waited for stronger market cues before
adjusting offer levels.
Further reading
Steel Prices
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MIDDLE EAST
Turkish exporters slam US methodology in HRC anti-dumping

case
The USAs decision to impose preliminary anti-dumping duties on imports of Turkey-origin hot rolled
coil (HRC) is unacceptable, Namik Ekinci, chairman of the Turkish Steel Exporters Union (IB), said on
Friday March 18.
Duties for Turkish producers have been set at 5.24-7.07%, according to a preliminary announcement.
The investigation was begun after requests from local producers in the USA against HRC imports from
Turkey, Australia, Japan, the Netherlands, the UK, South Korea and Brazil.
However, in January this year, the USA had announced preliminary countervailing duties among which
Turkish producers were assessed de minimis.
That earlier decision had again proven that Turkish steel companies follow free-economy rules, the IB
said.
3/21/2016
Page 17 of 32
Ekinci criticised US methods for calculating anti-dumping margins

We see very important methodical problems in the [USAs] dumping investigation, Ekinci said.
The claim that the Turkish steel sector has been dumping is unacceptable. The methods for calculation
of dumping margins are also unacceptable, he added.
When comparing export and local prices, similar periods of sales need to be taken into consideration.
We find no dumping in our calculations, [so] the USA must have a different method, he said.
Companies in the USA prefer to take an invoice date when delivery is made into consideration. This
method has two problems, Ekinci said.
One is that the USA prefers to use the most disadvantageous method for calculations. And also, the
investigation period the second half of 2015 was when prices decreased by about 50%. So delivery
times affected prices, he explained.
I believe that if the investigation covered a period when prices increased, the USA would use the date
when sales were made [and not the delivery date], he added.
Turkish companies get no state support and do not dump material, and this has been proven in every
case so far, he continued.
The fact that the European Commission, in its case against Chinese flat steel products, takes Turkey
as an analogue country for its use of the market economy showed that [the Europeans] have
confidence in Turkish international trade, the union added.
The IB expects a final decision on duties in the USAs anti-dumping case to be announced in August.
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Turkish domestic HRC prices keep rising, CRC down by $20
Prices in Turkey for hot rolled coil (HRC) kept increasing this week while those for cold rolled coil (CRC)
fell by $20 per tonne.
HRC was offered from producers at $440-450 per tonne ex-works for May production. Most producers
were planning to stop taking May orders and to offer new prices for June production soon.
Some deals for HRC were made at $410-430 per tonne ex-works.
Steel Firsts weekly price assessment for Turkish domestic HRC was $410-430 per tonne ex-works on
Friday March 18, up from the previous $370-430 per tonne ex-works.
The price increases have to stop. This is not logical, a trader said.
CRC was sold at $500-520 per tonne ex-works, with offers at $500-540 per tonne ex-works.
The weekly price assessment for Turkish domestic CRC was $500-520 per tonne ex-works on Friday,
down on the higher end from the previous $500-540 per tonne ex-works.
Offer prices for HRC exports from Turkey were $400 per tonne fob, but buyers were bidding $380-390
per tonne fob.
The weekly price assessment for Turkish HRC exports was $390-400 per tonne fob on Friday, up from
the previous $345-385 per tonne fob.
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Turkish coated coil prices dip on lack of demand
Coated coil prices in Turkeys domestic market dropped slightly this week, as a lack of demand failed to
support higher offers.
3/21/2016
Page 18 of 32
A producer sold 0.50mm thick hot dipped galvanized coil (HDG) at $720 per tonne ex-works and other
deals were heard at $670 per tonne ex-works, sources told Steel First.
Offers for the product were at $680-720 per tonne ex-works.
Steel First's weekly price assessment for Turkish domestic HDG was $670-720 per tonne ex-works on
Friday March 18, down at the lower end from the previous $680-720 per tonne ex-works.
Pre-painted galvanized coil (PPGI), or colour-coated coil, also of 0.50mm thickness and with 9002
colour code, was sold at $760 per tonne ex-works by one producer, while another was selling at $800810 per tonne ex-works.
Steel First's weekly price assessment for domestic PPGI in Turkey was $760-810 per tonne ex-works
on Friday, from the previous $800-810 per tonne ex-works.
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Weak demand, imminent holiday keep Iranian steel prices on

hold
The Iranian domestic steel market was largely unaffected by price rises in the international market this
week.
The approaching Iranian new year holiday combined with weak local demand to keep a lid on prices.
But most market participants are optimistic that price increases in the global market will boost local
market prices in coming weeks.
We cant expect a booming market for steel in the near future, all circumstances considered, but the
price increases for steel in global markets, along with high inflation in Iran, could help to raise domestic
steel prices after the new year holiday [starting on March 19], a trader said.
In the free currency market, $1 could be exchanged for 34,400 rials on Wednesday March 16,
unchanged week-on-week. The official exchange rate on March 16, according to Oanda.com, was $1 to
30,218 rials.
Billet in sizes from 125x125mm to 150x150mm traded this week at 9.30-10.20 million rials ($270-297)
per tonne ex-stock Tehran, down from 9.35-10.10 million rials ($272-294) per tonne last week.
CIS suppliers raised offer prices significantly for billet, to $340-350 per tonne cfr Iranian northern ports,
from $280-290 per tonne last week.
Khouzestan Steel, the major supplier of semi-finished products in Iran, sold billet at 9.70-9.95 million
rials ($282-289) per tonne with delivery of 35-95 days through the Iran Mercantile Exchange (IME).
Local mills sold rebar at 11.50-12.30 million rials ($334-358) per tonne ex-stock Tehran, compared with
11.35-12.50 million rials ($330-363) per tonne the week before.
Esfahan Steel sold rebar at 11.30-11.90 million rials ($328-346) per tonne ex-stock with delivery of 4-67
days through the IME.
Hot rolled coil (2-5mm) traded at 13.35-16.20 million rials ($388-471) per tonne ex-stock Tehran,
compared with 13.50-16.40 million rials ($392-477) per tonne last week.
Mobarakeh Steel sold HRC at 14.10-14.35 million rials ($410-417) per tonne ex-works, on 36-67 days
delivery terms, through the IME.
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EUROPE
Domestic rebar prices in Poland up on higher

scrap costs, demand
Polish steel mills have been trading rebar this week at higher prices than
3/21/2016
Page 19 of 32
previously as scrap prices have increased, sources told Steel First on Friday
March 18.
This month the mills have paid about 10-15 [$11-17] per tonne more than in
February, and they raised rebar offers immediately after the monthly scrap
contracts were made, a Polish trader said.
Steel Firsts price assessment for domestic 12mm B500B-grade rebar was 1,4101,460 zloty ($371-384) per tonne ex-works on March 18, up from 1,370-1,440
zloty ($360-378) per tonne ex-works last week.
Deals for rebar have been reported at 1,420-1,450 zloty ($373-381) per tonne cpt,
while official offers have reached 1,470 zloty ($386) per tonne cpt, with transport
costs of about 10-20 zloty ($3-5) per tonne.
Demand increased this week as Polish traders started restocking ahead of the
seasonal rise in construction activity. In addition, the growth of purchasing interest
was supported by the fact that traders have been buying more material due to
expected further rebar price growth in April.
As a result of the growth in demand, Polish mills have sold out material from stock
and there was no material available at short delivery times, according to market
sources.
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Germany sees steel scrap shipments fall 7.5% in

2015
Scrap shipments in Germany fell 7.51% year-on-year in 2015, according to data

released by the country's steel recycling association, BDSV.
The countrys total scrap shipments fell to 25.65 million tonnes in 2015 from 27.73
million tonnes in 2014, BDSV said on Thursday March 17.
The drop in shipments was driven by both lower export and domestic deliveries in
Germany.
Scrap export shipments fell 16.37% year-on-year to 7.94 million tonnes in 2015,
while domestic shipments dropped by 5.89% year-on-year to 21.09 million
tonnes.
Germanys crude steel output fell 0.6% year-on-year to 42.68 million tonnes in
2015.
However, production of crude steel from electric arc furnaces (EAFs), where the
input is almost 100% scrap, fell 3.4% year-on-year to 12.62 million tonnes, while
output of steel produced in basic oxygen furnaces (BOFs), which use up to 18%
scrap, increased by 0.6% year-on-year to 30.05 million tonnes.
German scrap suppliers delivered 14.33 million tonnes of scrap to EAF mills and
3.38 million tonnes to BOF mills, falls of 3.44% and 0.50% year-on-year,
respectively, BDSV said.
Lower scrap shipments in Germany have been also connected to the general
negative price trends in the global steel market.
The Metal Bulletin daily ferrous scrap index for Northern European HMS 1&2
(80:20) material delivered to Turkey the world's leading scrap consumer
dropped by 43.29% over the last year.
And low-cost steel imports from China also had a negative impact on ferrous
scrap prices in Germany and elsewhere.
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3/21/2016
Page 20 of 32
UK stainless scrap prices steady after nickel rise,

sterling boost
Inter-merchant stainless steel scrap prices in the UK remained unchanged this
week after a strengthening of sterling cancelled out a rise in the nickel price,
sources told Steel First on Friday March 18.
Steel Firsts weekly price assessment for UK domestic 18/8 stainless steel scrap
remained at 580-610 ($832-875) per tonne on March 18.
The three-month official bid/offer spread for nickel on the London Metal Exchange
was $8,910/8,915 per tonne on March 18, up by $105 from $8,805/8,810 per
tonne a week ago.
Sterling was trading at 1 to $1.4343 on March 17, having risen sharply day-today from 1 to $1.4133 on March 16, according to exchange rate service
Oanda.com.
We have kept our buying price stable due to concerns over reduced demand
from our major consumers in the second quarter of 2016, one trader said.
Supply for 18/8 stainless solids is reasonable, and its good for chrome, a
second trader said.
The price for 18/8 alloy steel turnings in the UK domestic market was 495-520
($710-746) per tonne delivered to the scrapyard, calculated at an average of 85%
of the solids price.
Inter-merchant prices for chromium alloy steel solids remained stable week-onweek, with 16-17% Cr solids at 85-105 ($122-151) per tonne, and 12-13% Cr
solids at 55-65 ($79-93) per tonne.
EU import prices
Steel Firsts weekly price assessment for 18/8 stainless steel solids imported into
mainland Europe also remained steady week-on-week at 850-870 ($958-980)
per tonne cif main European port, on March 18.
Imported 18/8 stainless steel turnings prices were assessed at 730-750 ($823845) per tonne cif main European port, calculated at an average of 86% of the
solids price.
It was a very quiet second half of the week, a third trader said. It started off
well, but when the market went down, it became very dull.
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EU stainless market too weak for base price rises,

Damstahl says
The European stainless steel market is not strong enough yet to accept any rise
in base prices, Danish distributor Damstahl said in its monthly stainless steel
briefing on Friday March 18.
Any move towards a price increase could only come from a further weakening of
the euro, which could happen as the European Central Bank (ECB) cut eurozone
interest rates to 0% on March 10, Damstahl said.
However, Damstahl said there were signs of optimism from other European
markets, including Italy, as well as from price rises in nickel and stainless steel
scrap.
The three-month nickel price on the London Metal Exchange was $8,910/8,915
per tonne on March 18, compared with $8,325/8,350 per tonne on February 18.
Steel Firsts weekly price assessment for 18/8 stainless steel solids imported into
3/21/2016
Page 21 of 32
mainland Europe was 850-870 ($958-980) per tonne cif main European port, on
March 18, up from 810-830 ($913-935) per tonne on February 19.
Mills have reported an increasing order intake, while delivery times are now
slightly longer compared to a month ago, Damstahl said.
Meanwhile, alloy surcharges for European stainless flat and long steel also fell in
March, though market participants expect a rebound in April.
Demand in a number of European end-user industries, including consumer
goods, the automotive sector, and the construction industry are considered the
main drivers of the EU stainless market, Damstahl said.
European stainless crude steel production fell roughly 2% year-on-year to
approximately 6.7 million tonnes in the first eleven months of 2015, Damstahl
said.
Regional markets
Europes largest stainless steel market, Germany, is lacking in momentum due to
its exposure to week capital goods investment and lacklustre export markets,
including China, Damstahl said.
It added that the German market is likely to pick up after the Easter break, while
delivery times remain short as stocks are sufficient.
In the Netherlands, there has been an improvement in exports, while stock levels
have declined as mill delivery times have increased, although there is a lack large
volume orders.
Damstahl said March prices in the Netherlands for stainless products are
expected to be lowest in the first half of 2016.
Denmark, meanwhile, has seen stainless prices stabilise, with Damstahl reporting
that drops have partially stopped and there have even been some price
increases, despite the fluctuating nickel price.
The Swedish stainless market has seen strong order volumes, with end-user
stocks generally at low levels. And the recent recovery in the three-month LME
nickel price has created hope of increasing prices in the second quarter of 2016,
Damstahl said.
In Norway, there seems to be a market consensus that prices have bottomed out
after a very weak six months, Damstahl said, with market participants seeing a
rise in orders. This is likely to be down to the stabilisation in alloy surcharges,
which are expect to rise in April.
The recent rise in the price of oil is also a positive for the Norwegian stainless
market, with ICE Brent, the international crude oil benchmark, trading at $41.44
per barrel on March 18.
Slovenia has also reported low stock levels, with an expectation that distributors
will have to replenish their inventories as demand rises. The Slovenian economy
is forecast to grow by more than 3% in 2016, Damstahl said.
In Finland, base prices and alloy surcharges reached their lowest levels for 2016
in March amid strong competition, while the domestic economy is still affected by
the overexposure of its leading companies to the commodity markets.
However, the nekoski bio pulp mill in south-central Finland and new projects at
the Meyer shipyard in the southern city of Turku are keeping the Finnish stainless
market busy, Damstahl added.
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EU stainless base prices unchanged amid lower

market activity
3/21/2016
Page 22 of 32
European stainless steel base prices remained unchanged this week as market
activity dropped, sources told Steel First on Friday March 11.
Steel Firsts weekly base price assessment for 2mm, grade-304 cold rolled (CR)
stainless sheet remained at 1,060-1,090 ($1,195-1,228) per tonne, while the
price of grade-316 CR stainless sheet stayed at 1,360-1,390 ($1,533-1,566) per
tonne.
For stainless sheets, it has been very quiet, which is a surprise as the alloy
surcharge is likely to rise next month, one distributor told Steel First.
The telephone has just not been ringing this week its not a stock problem, or a
price problem, its a demand problem, he said.
Were facing a market where nobody will take a risk to buy bigger quantities if
they think the alloy extra will go up the next month, because it could just as easily
go down in May, and then youd have to depreciate the value of your stock, a
second distributor said.
The three-month official bid/offer spread for nickel on the London Metal Exchange
was $8,910/8,915 per tonne on March 18, up by $105 from $8,805/8,810 per
tonne a week ago.
On the long products front, Steel Firsts weekly price assessment for grade-304
bright bar was also unchanged on Friday at 790-820 ($890-924) per tonne
delivered in Europe.
There have been moves to try to raise the price of stainless steel bright bar,
sources told Steel First.
For some bright bar orders, the delivery time from EU mills will soon be
September, because there will be closures over August and lower production,
meaning they may try to raise base prices, the second distributor said.
But there are no grounds to believe that it will lead to a rise in prices right now,
he added.
Everyone wants to raise the base price but nobody wants to be the first to move,
a third distributor said.
Steel First heard of attempted price rises for grade-304 bright bar ranging from
10-20 ($11-23) per tonne, to higher figures of 30-50 ($34-56) per tonne in
Germany.
Market participants expected lower market activity over the next two weeks,
ahead of the Easter holiday weekend.
We have Easter next week [and that] will definitely affect sales figures, a fourth
distributor said.
Steel Firsts grade-304 stainless steel raw materials index, which is based on a
typical grade-304 slab from European mills, rose by $19.01 per tonne on March
14, to $991.46 per tonne.
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KVV Group mothballs KVV Liepajas Metalurgs mill

in Latvia
Ukrainian company KVV Group announced its decision to mothball its KVV
Liepajas Metalurgs rebar mill in Latvia on Friday March 18.
The group made the decision due to lack of support from the Latvian government
and the crisis in the international steel market, the company said.
KVV Group presented Latvian authorities a debt-restructuring plan on March 1
3/21/2016
Page 23 of 32
this year, and the Latvian treasury was supposed to decide on whether to
approve it on March 15.
However, the governments decision has been postponed until March 22 as it
requires some clarification from KVV Group, according to a spokeswoman for the
Latvian treasury.
An independent audit of KVV Liepajas Metalurgs, conducted in November 2015,
showed that the mill was sold at a price that was significantly higher than its
market price at the time of assessment, KVV Group said.
The Ukrainian company, therefore, claims that Latvias authorities have been
considering the debt restructuring plan based on incorrect financial information
about KVV Liepajas Metalurgs.
The group must still pay more than 70 million ($79 million) to cover the main
debts of Liepajas Metalurgs.
KVV Group bought the Latvian company in September 2014 for 107 million
($121 million) in deferred payment, and since then has invested a further 50
million ($56 million) in the mill.
In addition to the main debt, KVV Group owes Latvian gas supplier Latvijas Gaze
more than 640,000 ($721,000). Because of this debt, Latvijas Gaze cut off
supplies to the mill in the second half of February 2016.
KVV Liepajas Metalurgs halted operations at the mill in late January 2016, due to
the difficult market conditions.
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UK steel industry dismayed by lack of government

support in Budget
The UK steel industry has expressed its dismay at the ongoing lack of
government support and the continued inclusion of plant and machinery in
business rate calculations.
After a turbulent year, the UK steel industry was hoping for some kind of support
from the UK chancellor, George Osborne, when he announced this weeks spring
Budget.
The industry will be relieved that there is no fundamental overhaul of the [UK]
business rates system and that bills look set to increase less sharply in the
future, said Lee Hopley, chief economist at the UK manufacturers organisation,
EEF, on Thursday March 17.
However, the chancellor's decision to remove cheaper properties from paying
business rates only increases the burden on seeking revenue from plant and
machinery included in calculations, she added.
Osborne cut business rates for small businesses by raising the tax relief threshold
to 15,000 ($21,514) a year, but kept plant and machinery in the business rates
calculation.
[This] is a disappointment for the steel industry in particular, EEF ceo Terry
Scuoler said. The government will need to do more to support steel this year.
Roy Rickhuss, general secretary of the the Community union, which also
represents steelworkers, said the inclusion of plant and machinery represented a
tax on investment.
The governments much-heralded review of business rates has failed to deliver
the urgent support the steel industry needs, Rickhuss said.
Steel producers will continue to be penalised with high business rates for the
3/21/2016
Page 24 of 32
investments they have made, adding uncompetitive costs in a difficult global

market, he added.
UK firms have large additional business rate costs when buying plant and
machinery, compared with their European peers in France, Germany and
elsewhere, according to industry body UK Steel's 2015 annual review.
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Spains crude steel output up by 4.2% in 2015
Crude steel production in Spain increased by 4.2% year-on-year on 2015,

according to data released by Spanish steelmakers association Unesid on Friday
March 18.
Spanish steelmakers produced a total of 14.8 million tonnes of crude steel last
year. The rise was sustained in both carbon and stainless steel production.
Production growth slowed significantly in the fourth quarter of 2015, however,
showing only a 1% year-on-year rise.
Deliveries of finished steel products were almost unchanged in Spain at 14.3
million tonnes in 2015, up by 0.6% year-on-year. A significant 13% year-on-year
growth over the first three quarters of the year was offset by a drop in the fourth
quarter.
Spanish steelmakers delivered 5.1% more steel products year-on-year to the
domestic market in 2015, while deliveries to other European Union countries fell
by 6.3% year-on-year.
Deliveries of flat steel products in the domestic and EU markets increased by 2%
year-on-year to 5.1 million tonnes, while the figure for long steel products was
stable at 8.9 million tonnes.
Spains steel mills exported 9.5 million tonnes of finished steel products in 2015,
3% less than in 2014. Total export sales value dropped by 5.1% year-on-year to
7.13 million ($8.03 million) last year.
Steel import volumes increased by 8.1% year-on-year to 8.9 million tonnes in
2015. The increase was mainly driven by a 57% year-on-year rise in deliveries
from China. Imports from other European Union countries to Spain dipped by
1.9% year-on-year.
Spains steel consumption grew by 9.7% year-on-year in 2015 to 12.6 million
tonnes. The increase reflected a demand increase in the main steel-consuming
industries, including construction and automotive.
The strong rise of imports did not allow the Spanish steel industry to benefit from
demand growth, Andrs Barcel, ceo of Unesid, said.
The situation in the Spanish steel market is likely to remain unchanged in 2016,
the association said, as positive developments in steel consumption will be offset
by unfairly traded imports from China, and domestic steel mills will not be able to
benefit fully from demand recovery.
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RUSSIA & CIS
MMK will build new 450,000-tpy HDG line by 2018
Russian steelmaker Magnitogorsk Iron & Steel Works (MMK) will launch a new
450,000-tpy hot dipped galvanized (HDG) unit by 2018, a top sales manager told
a conference in Moscow on Thursday March 17.
3/21/2016
Page 25 of 32
A new coating line is also possible later on, depending on market demand,
Andrei Titov, MMKs senior manager for coated steel sales, told delegates to the
Galvanized and Painted Rolled Products: Trends in production and use
conference.
MMK said in July last year that it had signed a contract worth more than 25
million ($28.17 million) with German manufacturer SMS Group for the supply of
equipment for the HDG production facility, which was originally to have capacity
of more than 360,000 tpy.
The planned capacity has been increased since then, the companys spokesman
said on Thursday.
MMKs current galvanized steel production capacity is 1.86 million tpy, while its
capacity for pre-painted galvanized iron (PPGI) is 400,000 tpy.
Compatriot steelmaker Novolipetsk Steel (NLMK) has started sales from one of
the four continuous HDG lines it relaunched last month after a modernisation
exercise which boosted its capacity by 120,000 tpy.
The line at NLMKs main production site in Lipetsk will achieve full capacity in
May, head of regional sales Vladislav Ovchinnikov told the conference on
Thursday.
NLMK also plans to construct a new 450,000-tpy HDG line at the Lipetsk complex
by 2018.
Compatriot steelmaker Severstal plans to commission a new 400,000-tpy HDG
line and a 200,000-tpy PPGI line by 2017.
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OMK to invest $175m into OCTG production in

Russia
OMK plans to invest 12 billion roubles ($175.66 million) in the development of

pipe production in Vyksa, in Russias Nizhny Novgorod region, it said on Friday
March 18.
The Russian pipemaker intends to equip a high-tech centre for finishing of casing
pipe manufactured at its Vyksa Steel Works, as well as for production of
couplings for oil country tubular goods (OCTG).
OMK will also invest in expansion of tubing pipe production at the Vyksa plant.
The pipes are in demand even at todays oil price, OMK said.
The company did not specify any timeline for the investment projects, however.
OMKs investment strategy today focuses on maximum development of
opportunities of existing facilities, and on improving product quality in order to
maintain stability of sales and profitability in difficult market conditions, board
chairman Anatoly Sedykh said.
OMK operates six steel mills across Russia and the OMK Tube plant in the USA.
Last year, it was forced to abandon the construction of the integrated Chusovoy
Pipe Mill in the Urals region because of the abrupt changes in the
macroeconomic situation.
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3/21/2016
Page 26 of 32
projects'
Alexey Ivanushkin is leaving his post of first deputy ceo at Russian miner and
steelmaker Mechel to pursue his own projects, the company said on Thursday
March 17.
The post will be discontinued and its functions redistributed among other
management board members.
Ivanushkin will continue to work with the companys board of directors for several
months more to ensure a smooth transition of managerial powers and
credentials, Mechel ceo Oleg Korzhov said.
Prior to his appointment as first deputy ceo in 2014, Ivanushkin held various
positions at Mechel, including chief operating officer in 2004-09 and ceo of
Chelyabinsk Metallurgical Plant in 1999-2002.
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NORTH AMERICA
Urbanisation means less steel in US construction,

AISC says
The US construction market has recovered since the last recession, but that is not
all good news for domestic mills since the sector is less steel-intensive than it
used to be, according to one industry expert.
A trend toward urbanisation has meant increased construction and rehabilitation
of multi-storey residential buildings which often contain retail and office space
at the expense of more steel-intensive non-residential construction, John Cross,
vp of the American Institute of Steel Construction (AISC), told delegates at an
industry conference earlier this week.
Were not seeing the large corporate campuses. Were seeing rebuilt urban
areas as we move forward, he said, speaking in Chicago on Tuesday March 15.
Meanwhile, outside of cities, new single-family homes are not being built quickly
enough to bring suburban sprawl and the non-residential construction strip
malls and schools, for instance that go with it, Cross said.
That has hurt structural steels market share in the construction sector, which is
about 48% overall but only 35% in residential buildings, compared with the mid50% range in the non-residential arena, he said.
Were seeing our market share pulled down by that split between non-residential
and residential construction, Cross noted.
Case in point: Residential construction of buildings more than five storeys tall in
the past typically represented 5% of the building construction market but last year
grew to 25%, Cross said. And while such residential construction grew by 20% on
a square-footage basis last year, non-residential construction dropped by 2%, he
added.
This is a different recovery, Cross said. And, worse, it may be getting long in the
tooth. We dont see anything in the major indicators in the marketplace that
indicates any robust rebound in construction, he said. We are basically flat in a
flat market.
There will likely be a 5% growth rate in construction activity on a square-footage
basis in 2016, Cross predicted. But in 2017, that growth will likely plateau before
falling through 2020, he said.
AISC-member fabricators are already pessimistic about 2016, according to recent
survey data. That is because construction cycles typically take seven to nine
years to complete, indicating that the current market is at or near a peak, Cross
suggested.
3/21/2016
Page 27 of 32
If you dont want to be in a cyclical industry, dont get into construction, he said.
We are at that breaking point at the top where we are going to be flat or only
slightly rising for the next couple of years.
On the infrastructure front, larger projects will start to move forward because of
guaranteed federal funding resulting from passage of the Fixing Americas
Surface Transportation (Fast) Act, Cross said.
But the overall funding levels arent significantly higher than they were in the
past, he pointed out. So there will be an increase, but I wouldnt call it robust by
any stretch of the imagination.
Still, one bright spot could be in water transmission, following the lead crisis in
Flint, Michigan, and growing concerns about lead elsewhere, Cross concluded.
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More US HSS mills join years third price increase

Momentum is building for the years third increase on hollow structural sections
(HSS) prices in the USA as three more mills implement increments.
ExlTube, Southland Tube and American Tubular Products all announced $30-perton increases on structural, mechanical and other piping products, according to
letters to customers. Hanna Steel Corp confirmed during a call with AMM that it
had also raised HSS prices by $30 per ton.
The increases by ExlTube, Southland and Hanna will be effective on shipments
from April 11. American Tubular Products' increase is effective immediately,
although orders currently on the books will be price-protected for shipments
through March 31.
Increases had already been slated by Independence Tube Corp, American Tube
Manufacturing, Maruichi Leavitt Pipe & Tub, Atlas Tube and Bull Moose Tube,.
With the exception of Bull Moose, whose increase takes effect from April 1, the
remaining increases are scheduled to be implemented on April 11.
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LATIN AMERICA
Flat steel import prices up again in South America

South Americas flat steel import prices increased once again this week as
Chinese exporters continued to push for higher offers.
The largest rise was seen in the prices for hot dipped galvanized coil (HDG), with
Chinese mills starting to enter the export market after a couple of weeks of
absence.
Steel Firsts weekly price assessment in South America for HDG imports came to
$550-570 per tonne cfr on Friday March 18, up from $500-510 per tonne cfr a
week earlier.
A China-origin HDG cargo was offered in Colombia at $550 per tonne cfr, while
offers of similar material in Brazil were heard at $570 per tonne cfr.
There is a lack of supply [of HDG] in the local market, so imports are always
necessary, a So Paulo-based trader said.
This is the market with most liquidity [among flat steel products], a second
Brazilian source added.
3/21/2016
Page 28 of 32
Heavy plate import prices have also increased in the region, reaching $360-385
per tonne cfr on March 18, compared with last weeks $340-380 per tonne cfr.
Cold rolled coil (CRC) prices grew slightly over the same period, to $455-470 per
tonne cfr, with Chinese CRC offers arriving in Colombia at $455-465 per tonne
cfr, according to a Bogot-based steel buyer.
Meanwhile, import prices for hot rolled coil (HRC) in South America went
unchanged week-on-week on March 18, at $380-400 per tonne cfr.
But no HRC deals were closed at this level, especially in Brazil.
Its impossible to know which exchange rate [Brazilian Real/US dollar] you
should use to book material [due to local currency volatility], a local trader said.
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Latin American slab export prices increase on

reduced availability
Export prices for Latin America-origin slab have risen by $35-40 per tonne this
week, due to higher prices in Asia and reduced material availability.
Offers of slab from Brazilian producers were reported as high as $290 per tonne
fob, with at least one deal being closed, according to sources.
Prices are rising too fast, a Brazil-based trader said, however.
Slab prices are being affected by the current upward trend in the commodities
market, as well as higher steel prices in Asia.
But some buyers are struggling to gain shipments at lower price levels.
I am sure too few deals were concluded at this price [of $290 per tonne fob], a
source said.
Many producers would not be able to buy slab at this price, another source said.
Steel Firsts weekly assessment for Latin Americas slab exports was $270-290
per tonne fob on Friday March 18, up from $230-255 per tonne fob a week earlier.
Participants also reported a scarcity of slab in the export market, with different
steelmakers having their production temporarily limited.
In Brazil, for instance, Thyssenkrupp CSA has been conducting repair works at its
slab facility in Rio de Janeiro state.
Sources have said that the company has not yet returned to the spot market.
CSAs situation will be normalised close to the end of March, a source said.
In Mexico, meanwhile, ArcelorMittal faced a 10-day strike at its Lzaro Crdenas
facility, losing around 8,500-10,000 tonnes per day of steel production.
ArcelorMittal Mexico has lost around 90,000 tonnes of slab production [due to the
strike], a source said.
As producers return to the market, sources expect a change in the current pricing
trend.
The market will stabilise at the current level or lower, a source said. We will
know more over the next two weeks.
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3/21/2016
Page 29 of 32
Venezuela's HBI export market quiet as energy,

water crisis grips nation
Venezuelas hot briquetted iron (HBI) export prices held steady this week as the
country continues to struggle with the continuing drought and the resulting power
and water shortages.
Steel Firsts weekly price assessment for Venezuelan HBI exports stood at $180200 per tonne fob on Friday March 18, stable since mid-February.
A USA-based trader is offering a 30,000-tonne HBI cargo for a North American
client at $200 per tonne fob, but the transaction has not been closed so far.
A local HBI producer, meanwhile, did not receive any bids or make any offers this
week, due to the potential impact of an energy shortage in Venezuela, as it could
affect export movements.
The country is facing an energy shortage due to reduced rain levels, he said.
But Im still not sure if HBI and steel producers will stop operations [because of
this problem].
The US trader, however, said that Venezuela's steel and iron ore sectors will
definitely be affected by next weeks short working week.
Venezuelas president Nicols Maduro has granted the whole country an
additional three days off work, ahead of the planned two-day Easter holiday, due
to the ongoing energy crisis, according to the countrys official gazette on March
15.
All industrial and commercial activities in the country are, therefore, likely to be
halted from March 21 to March 27.
The government is rationing electricity and water supplies and is urging the
population to avoid waste due to the continuing drought that has resulted in
reduced activity at the country's hydroelectric power stations.
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Vale, China COSCO sign 27-year deal for iron ore

shipping
Vale and China COSCO Shipping have signed a contract of affreightment for cooperation in iron ore transportation, the Brazilian miner said on Friday March 18.
Under the deal, China COSCO Shipping will transport around 16 million tpy of
iron ore for Vale from the first half of 2018.
The agreement will last until the end of the 27th year from its commencement
date, according to Vale.
This contract of affreightment with China COSCO Shipping is another example of
the long-term partnership between Vale and China, Vale ceo Murilo Ferreira
said.
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Brazil's Usiminas lays off workers at Cubato,

halts flat steel output
Brazil-based Usiminas is facing constraints at its flat steel rolling operations at

Cubato works, in So Paulo state in the south east of the country.
The company has granted temporary paid leave to 1,300 workers at the rolling
areas of the Cubato unit, to last from March 9 to March 20.
3/21/2016
Page 30 of 32
During the period, production of finished steel is being made in phases, allowing
equipment, such as hot and cold rolling mills, to be idled whenever necessary, the
steelmaker said on Thursday March 17.
The equipment will be reconnected after the end of the paid leave period,
Usiminas said.
With the measure, the company aims to balance its production levels to the lower
demand levels, as well as optimising logistics, services and energy costs, it
added.
The paid leave will not affect deliveries to clients, since teams will be laid off in
phases, after concluding production plans, the company said.
The move affects about half of the Cubato workforce, according to the local
union, Sindicato dos Metalrgicos da Baixada Santista.
The union said the firms steel rolling operations are currently halted due to lack of
slab supplies.
Workers at Usiminas have informed [us] that the companys rolling operations
are stopped due to a lack of raw materials, union president Florencio Resende
de S told Steel First.
The union has not yet received confirmation from Usiminas that its workers will
return to their positions after March 20, as originally planned.
Usiminas stopped primary activities at the Cubato facility in January, due to the
weak performance of the domestic and global steel markets.
Ever since, it has been purchasing slab volumes from third party companies, such
as ThyssenKrupps CSA unit, to supply the unit.
Other sources confirmed that Usiminas had halted operations.
Cubatos rolling operations are at a standstill, a Brazil-based trader said.
The Cubato facility was focusing production on serving export orders, according
to several market participants.
The company said it will supply some orders with production from its Ipatinga
unit, a Brazilian trader said.
On March 18, Usiminas signed standstill agreements with its main creditor banks
to suspend payment of its debt obligations for a four-month period.
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Usiminas signs deals with creditors to suspend

debt payments
Usiminas has signed standstill agreements with its main creditor banks to
suspend payment of its debt obligations for a four-month period, the Brazil-based
company said on Friday March 18.
Banco do Brasil, Bradesco, Ita Unibanco, Santander, Brazilian state-owned
development bank BNDES, Japan Bank for International Cooperation (JBIC),
Bank of Tokyo Mitsubishi, Mizuho Bank and Sumitomo Mitsui Banking are among
the companys main creditors.
The agreements are conditional on approval of a capital increase in Usiminas at a
minimum amount of 1 billion Reais ($269.55 million), according to the company.
The deals also loses effect if an alternative proposal is approved without the prior
consent of the creditors, it added.
3/21/2016
Page 31 of 32
Last week, Usiminas board of directors approved a capital increase of 1 billion

Reais ($269.55 million) through an issue of new shares.
Another meeting to discuss the matter was scheduled for today.
Usiminas will continue to negotiate with the banks on a financial restructuring
project, it said, to adapt its debt profile to prospects in the short, medium and
long terms, in order to preserve the financial and operational capacity of the
company.
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AUSTRALIA
Australia gets tough on alloyed steel to deter

circumvention
Steel exporters from China, Taiwan and Malaysia will no longer be able to
sidestep anti-dumping duties in Australia by slightly modifying the galvanized
steel and hollow structural sections they ship there.
Australia's minister for industry, innovation and science, Christopher Pyne,
announced on Friday March 18 that the government had sealed up a loophole
that had allowed certain exporters in the three territories to make minor changes
to their products to circumvent existing anti-dumping duties.
The new ruling, which takes effect retrospectively, will result in duties payable of
more than A$4 million ($3 million). The decision followed an investigation by the
Australian Anti-Dumping Commission into the circumvention activities.
The duties for alloyed galvanized steel were previously set at 2.6-62.9% and
those for alloyed hollow structural sections, at 3-57.1%.
When foreign suppliers try to get around Australian anti-dumping duties, in this
case by substituting selected steel products with alloyed for unalloyed steel, this
government is committed to action," Pyne said.
On Friday, the anti-dumping commission also announced amendments to the
goods description in its original duty notices relating to imports of zinc-coated
(galvanized) steel and hollow structural sections, in a move to prevent
circumvention.
The anti-circumvention inquiry on galvanized steel was initiated by BlueScope
Steel, while the one on hollow structural sections was by Austube Mills, both
which are producers of the products in question in Australia.
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3/21/2016

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Page 1 of 32

March 20, 2016

TODAY'S TOP STORIES

HIGHLIGHTS: China steel price volatility, EU to take

WEEKLY SCRAP WRAP: Global scrap prices continue

IRON ORE PRICES: Benchmark index rises above $57 per

CIS and Russia

UK steel industry dismayed by lack of government

Flat Products Trade Log, March 18, 2016

Long Products Trade Log, March 18, 2016

Semi-finished Products Trade Log, March 18, 2016

WEEKLY SCRAP WRAP: Global scrap prices continue surge

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

Chinas spot rebar market up on billet rally

Index of spot market Iron Ore prices

Daily Metal Bulletin Ferrous scrap Index

MB Steel First Coking Coal Index - Hard

MB Steel First Coking Coal Index - Hard

Eastern China domestic hot rolled

Eastern China domestic rebar yuan

Northern China Tangshan

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

Rising seaborne coking coal prices leave participants in a bind

East Asian stainless steel market flat as participants await cues

Turkish exporters slam US methodology in HRC anti-dumping case

Weak demand, imminent holiday keep Iranian steel prices on hold

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

Germany sees steel scrap shipments fall 7.5% in 2015

UK stainless scrap prices steady after nickel rise, sterling boost

KVV Group mothballs KVV Liepajas Metalurgs mill in Latvia

UK steel industry dismayed by lack of government support in Budget

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

OMK to invest $175m into OCTG production in Russia

Mechels first deputy ceo quits 'to pursue own projects'

Urbanisation means less steel in US construction, AISC says

More US HSS mills join years third price increase

Turkey import billet $ per tonne

Turkey import cold rolled coil $

Turkey export billet $ per tonne

Turkey export rebar $ per tonne

Turkey export merchant bar $

Turkey domestic rebar $ per

Turkey domestic wire rod

Turkey domestic hot rolled coil

Turkey domestic prepainted

Latin America export slab $ per

Latin America export wire rod

Latin America export heavy

Latin America export cold

Flat steel import prices up again in South America

Latin American slab export prices increase on reduced availability

Australia gets tough on alloyed steel to deter circumvention

Flat Products Trade Log, March 18, 2016

per tonne cfr main ports

South America import hot

USA domestic rebar $ per short

USA domestic cold rolled sheet

China export heavy plate $ per

China export cold rolled coil $

Eastern China domestic rebar

Eastern China domestic plate

Eastern China domestic hot-dip

Southern China domestic plate

yuan per tonne ex-warehouse