Aug 21, 2023
CBAM, anti-circumvention, and positive developments in Asia – Stainless Espresso

2023-08-28
21 August 2023 – No sooner has the EC returned from holiday than it not only presents a hasty final CBAM regulation, but also follows up with several anti-circumvention investigations against stainless steel from Indonesia. While commodity prices in Asia are developing positively, there is also good news from Europe and the United States in terms of investments and car registrations.


EU CBAM and anti-circumvention proceedings against stainless steel
Already last week, the European Commission (EC) published the final version of the EU Carbon Border Tax CBAM. Much earlier than planned and apparently also under great pressure. There seem to have been no significant changes to the CBAM draft, which was published in mid-June 2023. And this despite the urgent indications and proposals for changes from the steel importing companies and associations.


These had very clearly pointed out the problems arising for small and medium-sized enterprises as a result of the current design of the regulation. Proposals to simplify CBAM and reduce bureaucracy were also just wiped off the table. Once again, this shows how far removed from reality and influenceable by lobby associations the gentlemen in Brussels are working.


Is EC under pressure at CBAM?
The EC has also made it clear several times that the importers of steel, stainless steel and aluminium are not welcome in the negotiations and the shaping of CBAM – even under false pretences. The now much earlier publication of the final CBAM rules, which were supposed to have been planned for September, also shows that the EC is under pressure to roll out a much-criticised market protection measure that has not been thought through to the end.


Anti-circumvention investigation against Indonesian stainless steel
As early as the beginning of August 2023, there were indications that the European Commission might seek anti-cricumvention proceedings against flat-rolled stainless steel (SSCR) from Indonesia via Turkey, Taiwan and Vietnam. 


Last week, the EC, at the request of the European steel producers’ association EUROFER, has now initiated anti-cricumvention proceedings concerning anti-dumping and anti-subsidy measures on SSCR against Indonesia. We will keep you updated on this matter.


SHFE starts the week on a positive note
The SHFE started the week with positive data today. In addition to copper (ca +0.47%), aluminium (ca +0.43%), zinc (ca +0.97%), tin (ca +1.16%), iron ore (ca +1.3%) and stainless steel (+0.66%), prices for crude oil (ca +2.39%, coke (ca +2.78%) and coking coal (+2.92%) also increased. Despite volatile movements, nickel on the SHFE has gained more than 11% in price since May and is currently trading at more than $23,000 per tonne. Chinese stainless steel spot prices have also moved steadily upwards since the beginning of August and higher demand for stainless steel products has been reported from the EU and the US.


USA: High investments in production facilities
In the US, investment in the construction and expansion of new production facilities, such as warehouses and other buildings, has increased sharply recently in the manufacturing sector. About 85 percent of this increase is likely to have been in the environmental technology and semiconductor industries – partly due to strong investment incentives from the US government. 


Investments rise by up to 15%
According to company reports, these investments could increase by 10 to 15 per cent by the end of 2023 and remain at this level until the second quarter of 2024. This would mean an investment volume of 10 to 15 billion USD in this area for the next three quarters.


Europe: strong increase in car registrations
EU new car registrations rose by a whopping 18 per cent in July compared to the same month last year, a slight acceleration compared to June. Growth in purely electric vehicles even picked up by a good ten percentage points to 61 percent, with Spain leading the way with a 64 percent increase, Germany (69 percent) and the UK (88 percent). Including hybrids, electric vehicles even accounted for a good fifth of all new registrations. 


Stainless Espresso – Back To Good News Business
The Good News and Possibilities team at Stainless Espresso is back. And yes, we know it, not everyone likes us when we don’t follow the business drama queens but focus on writing positive news and highlighting business opportunities. We’ll keep going whether everyone likes our espresso roast or not.



Source: Steel News
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