European Union antitrust regulators have imposed a combined fine of 61 million euros ($87 million) on nine companies for forming a calcium carbide cartel in breach of EU rules.
The cartel fixed prices and share markets for calcium carbide powder and granules and magnesium granulates in a large part of the European Economic Area between 2004 and 2007, the European Commission said in a statement on Wednesday. The companies are Almamet, Donau Chemie, Ecka Granulate, Holding Slovenske elektrarne, which formerly owned TDR Metalurgija), Novacke chemicke zavody and its former parent 1.garantovana, German steel industry supplier SKW Stahl-Metallurgie and its former parent companies Evonik Degussa and Arques industries.
Calcium carbine powder and magnesium granulates are used in the steel industry for desulphurisation or deoxidation purposes. Calcium carbine granulates are used for the production of acetylene, a welding gas.
Paint company Akzo Nobel was not fined because it blew the whistle on the cartel. Evonik Degussa saw its fine rise by 50 percent because of similar infringements in the past.
SKW Stahl-Mettalurgie was given a 13.3 million euro fine. It shares were down 5.6 percent to 12.84 euros in mid-day trading. Akzo was 0.47 percent off at 33.73 euros.
Source: Reuters
Showing posts with label EU. Show all posts
Showing posts with label EU. Show all posts
Thursday, July 23, 2009
Thursday, July 9, 2009
EU Petcoke Imports Rise Despite Recession
Figures from the European Union show that despite the global recession, imports of calcined petroleum coke into the EU rose by almost 54% to just under EUR138 million during the first quarter of 2009 compared to a year ago. However, the calcined petroleum coke trade between EU member states fell during the period by 6% to EUR79 million.
China and the USA were the chief sources for calcined petroleum coke, which is mainly used in the aluminium industry. The United States accounted for 45% of imports from outside the EU at EUR63 million, a rise of 15% over the first quarter of 2008. Despite the appreciation of the Yuan, China’s rise in imports was even more spectacular showing an increase of 225% from EUR9.59 million in Q1 of 2008 to EUR31.2 million in the first quarter of 2009.
Japan also saw a significant increase as its CPC exports to the EU trebled to EUR18.9 million in the quarter.
There were significant falls in imports from Argentina – down 33% to EUR2.9 million – and from Bosnia-Herzegovina, which sold EUR1.5 million to the Netherlands in Q1 of 2008, but zero in the first quarter of 2009.
Among the 27 EU nations, The Netherlands was the single biggest importer with EUR66.3 million worth of imports of which EUR59.7 million came from outside the EU, a rise of 30% on the first quarter of 2008. Two-thirds of the Netherlands’ imports came from the USA.
Germany imported EUR31.3 million – a rise of 85% - though almost half of that came from other EU countries, principally from the Netherlands and the UK.
China and the USA were the chief sources for calcined petroleum coke, which is mainly used in the aluminium industry. The United States accounted for 45% of imports from outside the EU at EUR63 million, a rise of 15% over the first quarter of 2008. Despite the appreciation of the Yuan, China’s rise in imports was even more spectacular showing an increase of 225% from EUR9.59 million in Q1 of 2008 to EUR31.2 million in the first quarter of 2009.
Japan also saw a significant increase as its CPC exports to the EU trebled to EUR18.9 million in the quarter.
There were significant falls in imports from Argentina – down 33% to EUR2.9 million – and from Bosnia-Herzegovina, which sold EUR1.5 million to the Netherlands in Q1 of 2008, but zero in the first quarter of 2009.
Among the 27 EU nations, The Netherlands was the single biggest importer with EUR66.3 million worth of imports of which EUR59.7 million came from outside the EU, a rise of 30% on the first quarter of 2008. Two-thirds of the Netherlands’ imports came from the USA.
Germany imported EUR31.3 million – a rise of 85% - though almost half of that came from other EU countries, principally from the Netherlands and the UK.
Wednesday, June 24, 2009
China Accused Of Strategically Hoarding Raw Materials
The United States and Europe say China is strategically hoarding many of the vital building blocks of industrial production as tough economic times inflame global trade tensions.
The Obama administration and the European Union launched sweeping World Trade Organization complaints Tuesday, alleging that China is using export controls to give its manufacturers cheap access to the key raw materials used in products ranging from aluminum and steel to solar cells, pharmaceuticals and microchips.
The formal U.S. and European requests for talks in their dispute with China – the first step in a WTO case – highlight the growing friction between the world's industrial superpowers as the recession clobbers global manufacturing and sends unemployment soaring.
“We are deeply troubled that this appears to be a conscious policy to create unfair advantages for Chinese industries,” U.S. Trade Representative Ron Kirk told reporters in Washington. “Now, more than ever, we must fight against this kind of domestic favouritism.” Mr. Kirk accused the Chinese of putting “a giant thumb” on the scales of free trade to give its own manufacturers the edge at the expense of everyone else.
They are not alone.
In spite of a widely publicized pledge by leaders of the Group of 20 countries not to put walls around their economies, protectionism is steadily infiltrating the global economy.
This is happening not just in China, but in Canada, the United States, Europe and much of the developing world.
Most industrialized countries have applied policies that can affect trade flows, including bailouts for domestic banks and auto makers, fiscal stimulus and restrictive purchasing policies, such as toughened Buy American rules in the United States.
“The G20 have more or less cheated on their promise not to raise protectionist measures in the wake of the recession,” said Marc Busch, a professor of trade policy and law at Georgetown University in Washington. “It's going to be a bumpy ride.” Several large developing countries, including India, Indonesia, Vietnam, Russia and Brazil, have blatantly slapped higher tariffs on goods and employed other means to limit imports.
A World Bank report identified nearly 50 trade-distorting measures – about half of those in the developing world – that are putting the nascent economic recovery at risk.
Among the examples: Ecuador has imposed new tariffs on more than 600 items and Indonesia has dusted off an old import-derailing tactic of requiring that certain types of goods be cleared only through selected custom points at particular times.
“A clear danger to co-ordinated recovery is the politically tempting tactic of protectionism,” the World Bank warned this week.
The commodities at the centre of the complaint filed with the WTO are bauxite, coke, zinc, fluorspar, magnesium, manganese, silicon metal, silicon carbide and yellow phosphorous. Coke, for example, is a type of coal used to make steel. Fluorspar is a key component in numerous industrial products, including steel, aluminum, glass and many chemicals.
In its filing, the United States alleges that China puts illegal export quotas, duties, fees and licensing requirements on these commodities.
The result is that Chinese manufacturers get preferential access to them at cheap prices, forcing the rest of the world to pay more.
“This is part of the game that gets played in China,” said Peter Morici, former chief economist at the U.S. International Trade Commission and now a professor at the University of Maryland. “It's illegal and it violates WTO rules.” Some analysts suggested the Chinese are doing more than just controlling exports, they're also aggressively buying up as many raw materials as possible to control international prices.
Prof. Morici said recessions typically spawn these types of disputes because it's “easier to prove injury” amid plant closings and mass layoffs. “It's much tougher to prove in a vibrant economy,” he added.
Even before the worldwide credit crunch and economic slump slashed deeply into trade volumes, China and the United States, along with other key Western trading partners, were increasingly at loggerheads, with disputes covering a wide range of goods and services.
And Beijing has become adept at using the procedures of the WTO, which it joined in 2001, to block or at least delay retaliation by aggrieved trading partners.
The United States and other developed countries thought that bringing China into the world trade fold would force it to change its behaviour and follow the rules established by the West, said Rodger Baker, senior analyst for East Asia with Stratfor, a global intelligence firm based in Austin, Tex.
But the Chinese “have figured out that this whole WTO thing is not a bad thing at all.” The friction has escalated dramatically since the recession hit. China has been using its vast cash reserves to stockpile key materials for steel-making and other basic industrial production. At the same time, it has systematically blocked the export of these same building blocks from its oversupply.
As a result, world prices have been forced up. And when the recession eases, Chinese manufacturers will be free to exploit a widening cost advantage, trade watchers say.
“China is certainly doing things with respect to exports that run afoul of WTO law,” Prof. Busch said.
And this is not the only Chinese action that is likely to spark a stern Western response.
One big concern is the so-called Buy China policy contained in a directive from China's powerful economic planning agency, the National Development and Reform Commission. This requires that local governments not discriminate against domestic manufacturers when doling out lucrative procurement contracts as part of the country's vast stimulus spending.
“If this is the tip of the iceberg, and China is trying to relevel the playing field that tilted in favour of foreign firms within the Chinese economy – which is part of the rationale for Buy China – then we'll invariably see more disputes,” Prof. Busch said.
Gary Hufbauer, a former top U.S. Treasury official, agreed that China appears to be breaking WTO rules and the pledges it made when it joined the organization.
Cases involving export controls are relatively rare and this one could “set an important precedent,” said Mr. Hufbauer, a senior fellow at the Washington-based Peterson Institute for International Economics. But he said China is unlikely to back off willingly and it could take up to three years to get a final ruling.
Right now, Beijing's tactics are not having much of an impact on Western competitors, Mr. Baker said. “But if there's a pickup in global consumption, the Chinese are way ahead of the game.”
Source: Globe And Mail
The Obama administration and the European Union launched sweeping World Trade Organization complaints Tuesday, alleging that China is using export controls to give its manufacturers cheap access to the key raw materials used in products ranging from aluminum and steel to solar cells, pharmaceuticals and microchips.
The formal U.S. and European requests for talks in their dispute with China – the first step in a WTO case – highlight the growing friction between the world's industrial superpowers as the recession clobbers global manufacturing and sends unemployment soaring.
“We are deeply troubled that this appears to be a conscious policy to create unfair advantages for Chinese industries,” U.S. Trade Representative Ron Kirk told reporters in Washington. “Now, more than ever, we must fight against this kind of domestic favouritism.” Mr. Kirk accused the Chinese of putting “a giant thumb” on the scales of free trade to give its own manufacturers the edge at the expense of everyone else.
They are not alone.
In spite of a widely publicized pledge by leaders of the Group of 20 countries not to put walls around their economies, protectionism is steadily infiltrating the global economy.
This is happening not just in China, but in Canada, the United States, Europe and much of the developing world.
Most industrialized countries have applied policies that can affect trade flows, including bailouts for domestic banks and auto makers, fiscal stimulus and restrictive purchasing policies, such as toughened Buy American rules in the United States.
“The G20 have more or less cheated on their promise not to raise protectionist measures in the wake of the recession,” said Marc Busch, a professor of trade policy and law at Georgetown University in Washington. “It's going to be a bumpy ride.” Several large developing countries, including India, Indonesia, Vietnam, Russia and Brazil, have blatantly slapped higher tariffs on goods and employed other means to limit imports.
A World Bank report identified nearly 50 trade-distorting measures – about half of those in the developing world – that are putting the nascent economic recovery at risk.
Among the examples: Ecuador has imposed new tariffs on more than 600 items and Indonesia has dusted off an old import-derailing tactic of requiring that certain types of goods be cleared only through selected custom points at particular times.
“A clear danger to co-ordinated recovery is the politically tempting tactic of protectionism,” the World Bank warned this week.
The commodities at the centre of the complaint filed with the WTO are bauxite, coke, zinc, fluorspar, magnesium, manganese, silicon metal, silicon carbide and yellow phosphorous. Coke, for example, is a type of coal used to make steel. Fluorspar is a key component in numerous industrial products, including steel, aluminum, glass and many chemicals.
In its filing, the United States alleges that China puts illegal export quotas, duties, fees and licensing requirements on these commodities.
The result is that Chinese manufacturers get preferential access to them at cheap prices, forcing the rest of the world to pay more.
“This is part of the game that gets played in China,” said Peter Morici, former chief economist at the U.S. International Trade Commission and now a professor at the University of Maryland. “It's illegal and it violates WTO rules.” Some analysts suggested the Chinese are doing more than just controlling exports, they're also aggressively buying up as many raw materials as possible to control international prices.
Prof. Morici said recessions typically spawn these types of disputes because it's “easier to prove injury” amid plant closings and mass layoffs. “It's much tougher to prove in a vibrant economy,” he added.
Even before the worldwide credit crunch and economic slump slashed deeply into trade volumes, China and the United States, along with other key Western trading partners, were increasingly at loggerheads, with disputes covering a wide range of goods and services.
And Beijing has become adept at using the procedures of the WTO, which it joined in 2001, to block or at least delay retaliation by aggrieved trading partners.
The United States and other developed countries thought that bringing China into the world trade fold would force it to change its behaviour and follow the rules established by the West, said Rodger Baker, senior analyst for East Asia with Stratfor, a global intelligence firm based in Austin, Tex.
But the Chinese “have figured out that this whole WTO thing is not a bad thing at all.” The friction has escalated dramatically since the recession hit. China has been using its vast cash reserves to stockpile key materials for steel-making and other basic industrial production. At the same time, it has systematically blocked the export of these same building blocks from its oversupply.
As a result, world prices have been forced up. And when the recession eases, Chinese manufacturers will be free to exploit a widening cost advantage, trade watchers say.
“China is certainly doing things with respect to exports that run afoul of WTO law,” Prof. Busch said.
And this is not the only Chinese action that is likely to spark a stern Western response.
One big concern is the so-called Buy China policy contained in a directive from China's powerful economic planning agency, the National Development and Reform Commission. This requires that local governments not discriminate against domestic manufacturers when doling out lucrative procurement contracts as part of the country's vast stimulus spending.
“If this is the tip of the iceberg, and China is trying to relevel the playing field that tilted in favour of foreign firms within the Chinese economy – which is part of the rationale for Buy China – then we'll invariably see more disputes,” Prof. Busch said.
Gary Hufbauer, a former top U.S. Treasury official, agreed that China appears to be breaking WTO rules and the pledges it made when it joined the organization.
Cases involving export controls are relatively rare and this one could “set an important precedent,” said Mr. Hufbauer, a senior fellow at the Washington-based Peterson Institute for International Economics. But he said China is unlikely to back off willingly and it could take up to three years to get a final ruling.
Right now, Beijing's tactics are not having much of an impact on Western competitors, Mr. Baker said. “But if there's a pickup in global consumption, the Chinese are way ahead of the game.”
Source: Globe And Mail
Sunday, March 1, 2009
Analysts - EU, Japanese Steel Mills Should Take Iron Ore Talks Lead
Iron ore price talks between world's leading ore miners and Chinese steel mills are continuing but some market insiders are suggesting that Chinese mills should concede the position of leading negotiator to their counterparts in Europe and Japan, who are grappling with a deeper economic recession.
Japan suffered a GDP decline of 0.7% last year, the first drop in nine years and the economic recession is set to linger on this year. The EU central bank predicts that economic growth in the eurozone would at best remain flat or it would shrink by 1% in 2009. Nevertheless, leading institutes are confident that China would maintain a growth rate between 5.5% and 8% this year, and China's economy has already shown signs of recovery supported by Beijing's stimulus package.
As a result, the domestic steel price has rebounded for three straight months since November with a price rally of 15-30% from the bottom level. And the spot ore import price has increased 20% from three months ago, while the domestic ore price also climbed by over 15%. Meanwhile, the European steel price has fallen by 18-20% in the same period. Chinese pig iron output has returned above 40 million tonnes in January after falling below that benchmark line in the past four months. The imported iron ore tonnage has also hit a eight-month high of 32.65 million tonnes in January.
However, steelmakers around the world are cutting production, shutting plants and laying off workers. EU-27 countries have reported pig iron output halved to 5.2 million tonnes in February and Japan has seen a sharp decline of 27% to 5.5 million tonnes in the same month. Therefore, European and Japanese mills are more eager to push for a sharp cut on contract ore prices due to plummeting demand for iron ore.
Chinese mills might be better holding back and let them lead the ore talks this time.
Source: Steel Guru
Japan suffered a GDP decline of 0.7% last year, the first drop in nine years and the economic recession is set to linger on this year. The EU central bank predicts that economic growth in the eurozone would at best remain flat or it would shrink by 1% in 2009. Nevertheless, leading institutes are confident that China would maintain a growth rate between 5.5% and 8% this year, and China's economy has already shown signs of recovery supported by Beijing's stimulus package.
As a result, the domestic steel price has rebounded for three straight months since November with a price rally of 15-30% from the bottom level. And the spot ore import price has increased 20% from three months ago, while the domestic ore price also climbed by over 15%. Meanwhile, the European steel price has fallen by 18-20% in the same period. Chinese pig iron output has returned above 40 million tonnes in January after falling below that benchmark line in the past four months. The imported iron ore tonnage has also hit a eight-month high of 32.65 million tonnes in January.
However, steelmakers around the world are cutting production, shutting plants and laying off workers. EU-27 countries have reported pig iron output halved to 5.2 million tonnes in February and Japan has seen a sharp decline of 27% to 5.5 million tonnes in the same month. Therefore, European and Japanese mills are more eager to push for a sharp cut on contract ore prices due to plummeting demand for iron ore.
Chinese mills might be better holding back and let them lead the ore talks this time.
Source: Steel Guru
Friday, January 16, 2009
EU Votes For Duty On Chinese Steel Rods
Reports from Brussels suggest that EU trade experts voted on Thursday in favour of slapping an anti-dumping duty of 25 percent on imports of Chinese steel wire rods, a diplomat said.
The duties, which came after EU producers complained of Chinese dumping hurting their businesses, risk fuelling tensions with China after a series of recent anti-dumping decisions against emerging Asian economic giant.
EU nations have been divided in recent Chinese anti-dumping decisions as the bloc struggles to deal with booming Chinese imports.
Last month EU countries narrowly voted in favour of duties on Chinese-made screws and bolts in one of the biggest anti-dumping cases against the emerging economic giant.In retaliation, China launched an anti-dumping probe into screws and bolts made in the European Union.
Source: AFP
The duties, which came after EU producers complained of Chinese dumping hurting their businesses, risk fuelling tensions with China after a series of recent anti-dumping decisions against emerging Asian economic giant.
EU nations have been divided in recent Chinese anti-dumping decisions as the bloc struggles to deal with booming Chinese imports.
Last month EU countries narrowly voted in favour of duties on Chinese-made screws and bolts in one of the biggest anti-dumping cases against the emerging economic giant.In retaliation, China launched an anti-dumping probe into screws and bolts made in the European Union.
Source: AFP
Monday, July 7, 2008
EU Fears Over Rio Tinto-BHP Merger
The insistence of BHP Billiton's chief executive, Marius Kloppers, that his company's bid for Rio Tinto is about "more volume, more quickly" rather than increased pricing power faces a potentially deal-breaking test by Europe's competition regulator.
On Friday the European Commission started a "phase two" investigation into the proposed $US170 billion ($176.5 billion) deal. The inquiry could scupper the merger, depending on the extent of remedies required for approval.
The investigation is due to conclude on December 9 but the commission could extend it.
BHP has long prepared for the second-stage process, having admitted the deal was unlikely to be cleared in the first.
The commission said concerns had arisen regarding the markets for iron ore, coal, uranium, aluminium and mineral sands, but its statement appeared to focus particularly on the steel-making materials of iron ore and coking coal.
Analysts believe BHP is most concerned about maintaining control of Rio Tinto's Pilbara iron ore operations because their combination would represent the greatest opportunity for cost savings. When BHP launched its formal bid for Rio in February - conditional on commission approval - it maintained its right to drop the bid if Rio disposed of any material iron ore assets in the context of that division.
For all other divisions, BHP reserved the right only to withdraw its offer if the disposal or acquisition was material in the context of Rio as a whole. The commission is expected to release its objections by September. BHP could use this as the basis for offering specific remedies.
Last week, the steel producer ArcelorMittal expressed interest in buying Rio's Canadian iron ore business if it was sold as part of the merger. But given the Canadian business supplies a different type of ore to a different market from the Australian business, it is unclear whether the commission would accept this as an appropriate remedy. In a statement that was unlikely to surprise the market, based on objections already voiced by steel makers, the commission said the merged company's market power in iron ore and coking coal meant there was a serious risk that the takeover could have a negative effect on the outcome of pricing negotiations with steel customers.
But the commission also took issue with Mr Kloppers' claim that the merger would benefit customers by providing BHP with the ability to increase volume more quickly.
"There is a serious risk that the merged entity might have the incentive to reduce the scale of its investment projects or slow down such investment, and so reduce supplies available on the market and increase prices," the commission said.
A BHP spokeswoman did not clarify whether the company could give undertakings that it would proceed with both companies' planned development pipelines in order to assuage those concerns.
In addition to iron ore and coking coal, the commission said nuclear power plant operators had raised questions over the increased concentration in the uranium industry.
In a brief statement, it added that there were also concerns over aluminium and mineral sands. It did not raise questions over the copper and diamond markets.
Source: Sydney Morning Herald
On Friday the European Commission started a "phase two" investigation into the proposed $US170 billion ($176.5 billion) deal. The inquiry could scupper the merger, depending on the extent of remedies required for approval.
The investigation is due to conclude on December 9 but the commission could extend it.
BHP has long prepared for the second-stage process, having admitted the deal was unlikely to be cleared in the first.
The commission said concerns had arisen regarding the markets for iron ore, coal, uranium, aluminium and mineral sands, but its statement appeared to focus particularly on the steel-making materials of iron ore and coking coal.
Analysts believe BHP is most concerned about maintaining control of Rio Tinto's Pilbara iron ore operations because their combination would represent the greatest opportunity for cost savings. When BHP launched its formal bid for Rio in February - conditional on commission approval - it maintained its right to drop the bid if Rio disposed of any material iron ore assets in the context of that division.
For all other divisions, BHP reserved the right only to withdraw its offer if the disposal or acquisition was material in the context of Rio as a whole. The commission is expected to release its objections by September. BHP could use this as the basis for offering specific remedies.
Last week, the steel producer ArcelorMittal expressed interest in buying Rio's Canadian iron ore business if it was sold as part of the merger. But given the Canadian business supplies a different type of ore to a different market from the Australian business, it is unclear whether the commission would accept this as an appropriate remedy. In a statement that was unlikely to surprise the market, based on objections already voiced by steel makers, the commission said the merged company's market power in iron ore and coking coal meant there was a serious risk that the takeover could have a negative effect on the outcome of pricing negotiations with steel customers.
But the commission also took issue with Mr Kloppers' claim that the merger would benefit customers by providing BHP with the ability to increase volume more quickly.
"There is a serious risk that the merged entity might have the incentive to reduce the scale of its investment projects or slow down such investment, and so reduce supplies available on the market and increase prices," the commission said.
A BHP spokeswoman did not clarify whether the company could give undertakings that it would proceed with both companies' planned development pipelines in order to assuage those concerns.
In addition to iron ore and coking coal, the commission said nuclear power plant operators had raised questions over the increased concentration in the uranium industry.
In a brief statement, it added that there were also concerns over aluminium and mineral sands. It did not raise questions over the copper and diamond markets.
Source: Sydney Morning Herald
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