[SMM Steel] Indonesian HRC Prices Remain Stable

The Milan Court of Appeal has rejected the request to suspend the shutdown of the hot-end facilities at the former ILVA steelworks in Taranto, leaving October 28 as the deadline for closure. September 16 marks a key operational point for initiating the shutdown process. The shutdown is expected to have a significant impact on both the domestic Italian and wider EU steel markets, with market participants expecting prices to increase as supply availability tightens. A senior Indian steel exporter said the reduction in Italian production would be bullish for regional prices, with the impact likely to extend beyond Italy into the broader European market. The loss of hot-end production could also increase demand for imported slabs for conversion into HRC, as mills look to replace part of the lost steel supply. Higher slab import requirements and increased conversion activity could consequently become an important feature of the Italian market as the shutdown progresses. For Indian exporters, however, the impact on volumes is expected to be minimal in the near term. EU quota constraints continue to limit the ability of Indian mills to increase shipments substantially even if European supply tightens. The more relevant impact for Indian sellers would therefore be through firmer Italian and EU steel prices, rather than a significant increase in export tonnage. Market opinion remains firmly bullish on Italian and EU prices following the shutdown, while imported slab demand and conversion into HRC are expected to increase as the market looks to compensate for reduced domestic production.

The Indonesian Anti-Dumping Committee (KADI) initiated an anti-dumping investigation on September 15 into imports of galvanized steel sheet (BJLS) from China, covering HS codes 7210.49.11, 7210.49.17, 7210.49.18, 7210.49.19, 7212.30.12, 7212.30.13, 7212.30.19, 7225.92.90, and 7225.99.90 under Indonesia's 2022 customs tariff book. KADI Chairwoman Frida Adiati said the probe follows a petition from PT Tata Metal Lestari and PT ArcelorMittal Nippon Steel Indonesia on behalf of the domestic industry, with preliminary evidence pointing to rising Chinese imports causing injury to local producers. Between January 1, 2023 and December 31, 2025, Indonesia imported 2,562,407 mt of BJLS globally, of which 2,075,801 mt (about 81%) came from China. The investigation will run for up to 12 months, extendable to 18 months if needed.

Austrian steelmaker voestalpine says construction of its Hy4Smelt demonstration plant in Linz remains on schedule, with completion expected in 2027 and research activities set to begin that November. Described as Austria's largest climate protection research project, Hy4Smelt will be the world's first plant combining hydrogen-based direct reduction of ultra-fine iron ores with electric melting, aiming to develop net-zero carbon dioxide steelmaking. Key equipment, including the melting furnace and HYFOR reactors, is due for delivery from autumn 2026, with the project carried out in partnership with Primetals Technologies and Rio Tinto, and supported by K1-MET.