Indian court denies steel importers Covid-19 relief
Indian steel importers cannot use force majeure declarations stemming from the Covid-19 outbreak to block letters of credit with South Korean suppliers, the Mumbai High Court said.
Contracts with South Korean steelmaker Hyundai Steel and trading firm GS Global for steel products shipped from South Korea are unenforceable "on account of frustration, impossibility and impracticability" during the pandemic and lockdowns in India, a group of importers said.
The importers asked the court to block US bank Wells Fargo from encashing letters of credit in a commercial arbitration petition. The court denied the request for immediate relief in an 11 April ruling, allowing it to proceed to an arbitration hearing.
The petitioners are Standard Retail, Integral Industries, Vinayaga Marine Petro, Hariyana International and Prabhat Steel Traders.
It is unclear whether Covid-19 disruptions will block imports, with India's ports still open and steel operations considered an essential service, undercutting arguments that force majeure conditions are met, the court said.
"There are no restrictions on its movement and all ports and port-related activities, including the movement of vehicles and manpower, operations of container freight station and warehouses and offices of custom houses agents, have also been declared as essential services," justice A A Sayed said.
The lockdown will be for a limited period so it cannot "rescue" the importers from their contractual obligations, he said.
The bank's letters of credit are independent of the underlying disputes between parties, the contract terms are on a cfr basis and the sellers have performed their part of the contracts, with the steel already shipped from South Korea, he said.
The Asean hot-rolled coil (HRC) index has fallen by $136/t, or 26pc, to $384/t cfr Vietnam on 11 April since late January when the Covid-19 outbreak led to large-scale lockdowns. The South Korea-origin HRC differential jumped to a premium of $45/t to the Asean HRC index in early February from flat in January, and now stands at a $10/t premium to the Asean index.
source: Argus Media
Top News
Glencore in talks to sell Philippine copper smelting unit
Rasul Khalife Soltani, Secretary of the Iranian Steel Producers Association on the sidelines of the 1403 Steel Symposium:
Mobarakeh steel is producing green steel through scrap recycling
India’s record gold import said to be due to calculation error
Volkswagen buys 9.9% of Patriot Battery Metals for $48 million
Sibanye raises $500m via metals streaming deal with Franco-Nevada
Norge Mining acquires Europe’s largest natural graphite producer
Mercuria partners with Zambia on metals trading venture
Iron ore price weakens as Australia flags return to sub-$100 prices
Skeena advances Eskay Creek permitting, unlocks Orion funding
Tiny but vital metal markets rush to adjust to Chinese clampdown
Petra Diamonds cuts forecasts, jobs amid market weakness
El Salvador president proposes bill to overturn metals mining ban
China’s 2025 steel demand to fall 1.5% on year, state research institute says
Lure of Anglo’s copper mines could test BHP’s spending resolve
Copper giant Peru foresees another production plateau in 2025
Iron ore price weakens as Australia flags return to sub-$100 prices
Nickel price hits 4-year low as gloom offsets potential Indonesia cuts
Mercuria partners with Zambia on metals trading venture
Sibanye raises $500m via metals streaming deal with Franco-Nevada
Tiny but vital metal markets rush to adjust to Chinese clampdown
Petra Diamonds cuts forecasts, jobs amid market weakness
El Salvador president proposes bill to overturn metals mining ban
China’s 2025 steel demand to fall 1.5% on year, state research institute says
Lure of Anglo’s copper mines could test BHP’s spending resolve
Iron ore price weakens as Australia flags return to sub-$100 prices
Nickel price hits 4-year low as gloom offsets potential Indonesia cuts
Sibanye raises $500m via metals streaming deal with Franco-Nevada
Triple Flag to acquire royalty on Tres Quebradas lithium project