MCI - Metals Consulting International

In April 2024, exports of iron ore from Brazil showed significant growth, increasing by 11.6% compared to March 2024 and by 19.5% compared to April 2023. This growth was observed in both iron ores and concentrates, with an increase of 11.5%, and pellets segments, with a substantial increase of 29.8%. Deliveries expanded to all major destinations except Bahrain and Oman.

In April 2024, exports of pig iron from Brazil experienced a significant decline of more than 30%, totaling 215kt. This reduction in supplies was primarily attributed to the UK market, where shipments dropped by approximately 160kt. However, amidst this decline, exports became more geographically diversified, with larger volumes destined for the Netherlands, Germany, Taiwan, and other countries.

In April 2024, Ukraine witnessed a 3% increase in exports of iron ores and pellets, totaling approximately 3.4 million metric tons. Of this volume, approximately 30% consisted of pellets, while the remaining 70% were fines/concentrates. China emerged as the primary destination for these exports, accounting for more than 50% of the total volume. Other significant markets included Poland, Slovakia, and Czechia.

The UK flat steel import market witnessed a slowdown in activity in the last week, based on analysis utilizing HM Revenue & Customs data: - The remaining volumes from previous periods were transferred to the current TRQ period, increasing the generically available volumes. - HRC Imports: Decreased to 10kt, with the most active supplies coming from EU exporters, while other players showed minor or no activity. - CRC Imports: Slightly increased to 3kt but remained below long-term averages. Activity was recorded from EU and South Korean suppliers. - HDG Imports: Reduced to 22kt, with similar activity from the EU side. Shipments from Taiwan were also tracked in the market, while India's quota is exhausted. - PP Imports: Reduced to 1kt, with only EU deliveries observed in the market.

Over the past week, activity in the EU import market continued to decline, with decreases observed across all product categories. Although theoretically, the available TRQ volumes are higher now due to the transfer of unused volumes from previous periods, these often come from economically unviable sources of the material.

In March 2024, Iran's DRI (Direct Reduced Iron) / HBI (Hot Briquetted Iron) exports decreased by 15% to 82kt. Notably, the country did not export to India during this month. The majority of exports consisted of DRI products supplied to Oman, while HBI was solely shipped to Pakistan and Iraq.

According to recent data from the European Commission, April 2024 saw a decline in business confidence in the Basic Metals segment and key consuming sectors: - Basic Metals Segment: Confidence slightly improved, primarily driven by lower stocks assessment, amid stable production expectations and a slightly improved order book. However, future price dynamics expectation is sliding down. - Automotive Segment: Sentiments worsened due to a more pessimistic view on production expectations and weak assessments of order books, alongside a reduction in stocks. - General Industry: Remains generally stable across all major parameters assessed. - Fabricated Metals Production: Shows weak sentiments, with further oversupplying and a sideways trend in future production expectations. - Construction: Exhibits a more positive outlook, driven by higher seasonal activities, improving employment expectations, and a stable view of the order books. Trends vary across major European economies.

Despite the EU imports market activity slow-down in the Flats segments in course of the last week, significant volumes are already awaiting allocation in this segment. 

Over the past week, activity in the EU import market activity slightly slowed-down, mostly due to the lower imports of the Flats.

In the last week of April 2024, the UK rebar market witnessed an uptick in activity. Quota-restrained import volumes reached 16kt, with a notable surge in activity observed from "Other" suppliers. Only 31% (7.1kt) of the tariff quotas remain for May and June, indicating high demand levels. Additionally, EU27 exporters shipped around 8.5kt during the week, with the potential to deliver more than 55kt within the TRQ framework.