#SAILSteelNews 01 March 2016

ArcelorMittal USA has informed customers that it would be increasing prices by US$ 30/s.T. for all new orders. The increase covers hot-rolled, cold-rolled and coated coils and was effective immediately. The move was the third in the US market in as many months. The two earlier price hikes were each US$ 20-30/s.T. and met with varying degrees of success. Since the December, US HRC prices have increased by approximately US$ 42.50/s.T. but CRC prices have increased by US$ 75/s.T. in the same period. (Source - SBB, London)

Spot prices of seaborne HRC in Asia began rising again on Monday after keeping stable last Thursday-Friday. Platts assessed HRC 3.0mm thick at US$ 295-300/T FOB China, that was up US$ 5/T from last Friday. Most Chinese mills would announce price increases in the coming few days, given the large orders they have received from the Chinese domestic market – as per analysts. (Source - SBB, London)

Ukrainian billet producer Elektrostal Kurakhovo is due to resume production from 1 March, following a more than two-month stoppage. The restart has been enabled by the recent upswing in billet prices in the Black Sea markets. The EAF-based mill booked orders for 40,000 T of billet, in the last couple of weeks and is now restarting production to fulfil these orders; its monthly capacity is 45,000 T of billet. (Source - SBB, London)

The GoI has proposed to remove the export duty on low grade iron ore fines and lumps in a bid to make the domestic mining sector, particularly in Goa, competitive amid a fall in prices globally. Export duty on iron ore fines with Fe content below 58% has been proposed to be reduced from 10% to nil while export duty on iron ore lumps with Fe content below 58% will be brought down to nil from 30%. (Source – Metal Junction)

The United States started to impose more tariffs on steel imports last year when it captured an unprecedented 29% of U.S. market share, causing thousands of layoffs and mill idlings nationwide. Those tariffs appear to now be having an impact. Import market share dropped to 26% in January in the United States, after hitting a high of 33% in February 2015. The United States imported 2.57 million net tons of steel last month, a steep 41% drop from January 2015. (Source - Metal Junction)

Consol Energy, one of the largest coal producers in the United States, sold Buchanan – and other metallurgical coal reserves in West Virginia, Virginia and Pennsylvania – to Coronado IV LLC for US$420 million, which includes US$ 398 million cash at the close of the transaction. Around 88 million tons of the 400 million tons included in the sale are from the Buchanan mine, which employs a longwall and continuous mining system. (Source – Mining)