Earlier this year, the association had forecast steel demand to drop by 1.7% in 2022.

“As a nation are very clear and very respectful of our treaties and our agreements,” Hernando said.

A high backwardation continued to dampen import appetite, leading to thin liquidity, although offers were quoted higher.

These include changes to the Emissions Trading System (ETS) and a new levy on imports under the Carbon Border Adjustment Mechanism (CBAM) to prevent carbon leakage.

The sites receiving ResponsibleSteel certification were POSCO’s Pohang and Gwangyang Steelworks in South Korea and Tata Steel’s Jamshedpur site in India.

The two contracts have gained momentum on high volatility in the physical market that attracted greater futures interest.

The problem is that there are more than 13m tons of HRC capacity coming online or planned to come online in the next three years.

Semiconductor shortages, as well as other logistical issues, have roiled automotive production in the US and around the globe since 2021. Lower automotive production rates have subsequently cut demand for steel in the sector.