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voda 7 augustus 2019 17:13

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GMS Market Commentary on Shipbreaking in India in Week 31 - SHOCKING DECLINE!

India has endured a shocking decline in prices over the month of July, with levels plummeting towards the mid-USD 300s/LDT, leaving Alang recyclers as the lowest placed subcontinent market at present. While the Indian Rupee declined sharply on Friday (nearing the Rs. 70 mark against the US Dollar), it has been the incessant crashing of local steel plate prices that have been the primary source of heartburn for local Recyclers (and Cash Buyers at large). Not only have plate prices fallen by about USD 55/Ton over the month of July, they further declined another USD 10/Ton over the course of last week.

Owners with small LDT tonnage and those intended for green recycling (that are currently limited to Alang) are therefore paying the highest price from this most recent decline as small LDT and green units tend to be discounted over regular units. Moreover, for certain types of tonnage, India’s decline towards the USD 300/LDT mark now represents a drop that is nearing almost USD 100/LDT when compared to the peaks seen earlier this year!

As such, with August upon us and monsoon now nearing an end, most in the industry are expecting (and hoping) for a fourth quarter recovery in prices. For the time being however, the 15% decline in levels is hampering efforts to resell vessels at anywhere near sensible levels into the Indian market.

Source : Strategic Research Institute

voda 8 augustus 2019 07:33

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ThyssenKrupp verlaagt winstprognose

Gepubliceerd op 8 aug 2019 om 07:19 | Views: 78

ArcelorMittal 07 aug
12,40 0,00 (0,00%)

THYSSENKRUPP AG O.N. 07 aug
10,59 -0,01 (-0,09%)

ESSEN (AFN/BLOOMBERG) - ThyssenKrupp heeft zijn winstprognose voor het lopende boekjaar verlaagd. Ook bekijkt het Duitse staal- en industrieconcern de mogelijkheden om onderdelen af te stoten. ThyssenKrupp worstelt met de vertraging van de Duitse economie, die gebukt gaat onder tegenvallers in de voor de onderneming belangrijke autosector en de oplopende handelsspanningen.

Het ophalen van geld door divisies te verkopen moet ThyssenKrupp helpen om de neerwaartse spiraal in de financiële resultaten te doorbreken. In het afgelopen derde kwartaal van zijn gebroken boekjaar zette ThyssenKrupp een verlies in de boeken van 94 miljoen euro. De omzet kwam uit op 10,8 miljard euro.

voda 8 augustus 2019 16:30

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Danieli Automation to Revamp Columbus Stainless Steel Caster

Acerinox has contracted Danieli Automation for the electrical and automation revamp of the stainless steel slab caster at Columbus Stainless (Pty) Ltd in Mpumalanga in South Africa. The plant produces austenitic stainless steel, ferritic stainless steel, and duplex stainless in plate, sheet, coil and strip. The 1990s era CCM currently is a production bottleneck for the plant, with a maximum casting capacity of 72,000 tonnes per month.

The turnkey project will include
New PLC and SCADA systems
Converting 18 motors/drives from DC to AC power supply
Complete replacement of Level 2 with Danieli Automation Q-CAST, including the Q-ART, Q-CUT, Q-MIX and Q-COOL technological packages.

With less than six months from the order to the restart of the plant, and only two weeks of shut down, this project represents an important challenge for Danieli Automation.

Source : Strategic Research Institute

voda 8 augustus 2019 16:31

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Economic Slowdown & Raw Materials Cost Impact voestalpine’s earnings for Q1 2019-20

As far as the voestalpine Group is concerned, the macroeconomic environment has clouded over significantly since the start of the business year 2019/20. By and large, this is due to the fallout from the international trade conflicts and the associated, growing weakness of the global economy, which affects above all Europe’s export-oriented industries and the slumping automotive industry in particular.

At EUR 3.3 billion, revenue for Q1 2019/20 3.8% lower than in the previous year (EUR 3.5 billion)
EBITDA fell by 27.7%, from EUR 513 million to EUR 371 million
EBIT dropped by 51.6%, from EUR 324 million to EUR 157 million
Profit before tax declined from EUR 294 million to EUR 124 million, profit after tax from EUR 226 million to EUR 90 million
Gearing ratio rose from 49% to 58%
Equity stable at EUR 6.7 billion
Number of employees: 51,670 (-0.3%)
Cooling economy and trade conflicts as well as price increase in iron ore and CO2 emission certificates were main factors
Furthermore, strong increases in iron ore prices in a weakening market along with falling prices for steel products as well as rising costs for CO2 emission certificates in the EU put pressure on profit margins.

The economic downturn as well as large cost burdens with respect to both raw materials and CO2 certificates are reflected in the voestalpine Group’s diminished earnings for the first quarter of the business year 2019/20. Thanks to our broad product portfolio, however, we succeeded despite these challenges in generating positive demand throughout key customer segments such as rail technology, aerospace as well as warehouse and welding technology. In addition, we are already intensely working on counteracting market pressures through cost and efficiency improvement programs in the entire Group.

Outlook - Generally speaking, it can be said that the economic uncertainty has grown since the start of the business year and that negative effects from the global trade conflicts and/or the Brexit are likely to increase further. The assumption that iron ore prices would fall has not materialized to date. So far, a situation where rising ore prices occur in tandem with falling steel prices has held sway for short periods only. This is why we expect that, this time too, the present unfavorable constellation will be resolved during the second half of the business year. The momentum in the automotive industry is undoubtedly cooling off. This has affected the four divisions of the voestalpine Group differently in the first quarter of the business year 2019/20, with moderate to material impacts on earnings. Customers of voestalpine in the automotive industry are confident that they will be able to handle the new emissions test in September. The intracorporate challenges are being dealt with. Hence this particular set of topics should have less of an impact on the current business year’s second half than it did on the first.

Source : Strategic Research Institute

voda 8 augustus 2019 16:32

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Mr Vyacheslav Vorotnikov Appointed as Managing Director of NLMK Lipetsk

NLMK Group announced the appointment of Mr Vyacheslav Vorotnikov as Managing Director of NLMK Lipetsk, effective 5 August 2019. Mr Vorotnikov previously held the position of NLMK Lipetsk’s Director of Production Planning and Organization. Mr Vyacheslav joined NLMK in 1975, holding various positions at the cold rolling operations from 1979 to 1998, before being appointed Deputy Sales Director, a position he held from 1998 to 2000. From 2000 to 2010 he served as Deputy Director of Production. He has been NLMK Lipetsk Director of Production Planning and Organization since 2010. Vyacheslav graduated from the USSR Institute of Finance and Economics, majoring in Industrial Production Planning. Mr Vyacheslav was awarded the title of Honorary Metallurgist of the Russian Federation, a Medal of the Order ‘For Merit to the Fatherland’ of the second degree, and a Badge ‘For Merit to the Lipetsk Region’.

Mr Sergey Filatov, who previously headed NLMK Lipetsk, has decided to step down as Managing Director for family reasons. He will stay on with NLMK Group as Advisor to the President.

Source : Strategic Research Institute

voda 8 augustus 2019 16:32

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Gerdau Cuts 2019 Investment Plan amid Weak Demand

Gerdau has cuts its full-year capex estimate by 18%, due to reduced demand for long steel products, weak construction demand and a fast pace of divestitures. CEO Gustavo Werneck said “What we decided to reduce was the investment related to capacity expansion, those related to higher growth of some products and services related to the Brazilian market, such as the expansion of hot rolled coils in our Ouro Branco mill, as we understood that there would be no need to approve these investments at this time as the recovery in demand did not come at the speed we imagined. We are going to pay close attention to demand in the second half of 2019. If demand bounces back, we could re-evaluate these investments.”

The Brazilian steelmaker says Q2 profit fell 46.5% YoY to 373 million reais (USD 94.2 million), citing its aggressive asset sales program in which it sold assets in the US, China and India.

Source : Strategic Research Institute

voda 8 augustus 2019 16:33

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Turkish Military Pension Fund Oyak’s Ataer Holding in British Steel Takeover Talks - FT

Financial Times reported that an investment group owned by Turkey’s military pension fund is in last minute talks about a takeover of British Steel. FT report quoted two people familiar with the matter as saying that “Ataer Holding, a wholly owned vehicle of state military retirement scheme Oyak that is also the largest shareholder in Turkish steel group Erdemir, is negotiating with the UK government about acquiring the collapsed steelmaker.”

However, one of the people said a push by Ataer for financial undertakings from the UK government had become a point of contention because any taxpayer support could come up against EU rules that restrict state aid for companies. He said “This is not a done deal.”

A person close to EY, which is assisting the official receiver in charge of the liquidation, said the terms of the deal were still being negotiated “line by line” on Tuesday during a phone call between representatives of the UK government and the Turkish group.

The Turkish bid envisages boosting production at Scunthorpe, according to two of the people with knowledge of the situation.

Source : Financial Times

voda 8 augustus 2019 16:33

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Tata Steel Board Approves MoU with Synergy Metals & Mining Fund for Divestment of Tata Steel Thailand

Tata Steel's board has approved of signing of a MoU with Dubai-based Synergy Metals and Mining Fund to divest 70% of its stake in Tata Steel Thailand. According to the MoU, the Thailand business will be run in a 70:30 partnership. There was no announcement regarding the NatSteel business that has its facility in Singapore. Synergy Metals and Mining Fund is a private equity fund focused on investments in the metals, mining and natural resources sectors. In India the fund had also bid for the twin distressed assets of Uttam Value Steels and Uttam Galva Metallics along with Hong Kong based SSG Capital Management. However, lenders did not approve of the consortium's bid.

The approval comes a day after Tata Steel announced that it will no longer be selling its South East Asian units including NatSteel and Tata Steel Thailand to China's Hesteel with which it had signed definitive agreements in January for the same. The company terminated the agreements with Hesteel after the latter was unable to procure necessary regulatory approvals from the Hebei government in China. The approval was one of the key condition precedents for the transaction.

Source : Strategic Research Institute

voda 8 augustus 2019 16:35

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Dr Donatus Kaufmann to Leave Executive Board of thyssenkrupp AG

Dr Donatus Kaufmann, member of the Executive Board of thyssenkrupp AG, has reached an agreement with the Supervisory Board of thyssenkrupp AG to end his mandate as a member of the Executive Board of thyssenkrupp AG by mutual agreement. Dr Donatus Kaufmann will leave the Executive Board of thyssenkrupp AG and the company effective September 30, 2019.

Dr Donatus Kaufmann has been a member of the Executive Board of thyssenkrupp AG since February 1, 2014. He is responsible for Legal and Compliance, Technology, Innovation and Sustainability as well as for the regions North America and Western Europe.

Source : Strategic Research Institute

voda 8 augustus 2019 16:35

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Tata Steel Reports Results for April-June 2019 Quarter

Mr TV Narendran, CEO & Managing Director, said “The steel sector is facing significant headwinds which have affected spreads and overall profitability. However, our strong business model in India has helped us counter the overall market weakness, including the slowdown in the automotive sector, by growing volumes in multiple customer segments. Our focus on operational excellence has also helped in containing the impact on margins. Increased government spending and efforts to address the liquidity crunch should help revive demand and steel prices in India in the second half of the year. While TSE performance has been affected by market and operational issues, we are implementing a transformation plan which aims to reduce operating costs, rationalize capex and working capital and improve overall cashflows. We are consolidating our presence in India through the proposed merger of Tata Steel BSL with Tata Steel and our ongoing 5 MTPA Kalinganagar Phase II expansion, which will improve our product mix and further rationalize costs. Tata Sponge is focused on the integration and ramp-up of the recently acquired 1 MTPA steel business."

Key Highlights

Consolidated steel production as well as deliveries jumped 11%YoY to 7.15 million tonnes and 5%YoY to 6.34 million tonnes, respectively; India production surged 23%YoY to 4.50 million tonnes while deliveries grew 18%YoY to 3.96 million tonnes

Consolidated revenues stood at INR 35,947 crores while India revenues grew 13%YoY to INR 21,129 crores

Consolidated adjusted EBITDA was INR 5,530 crores and India adjusted EBITDA was at INR 5,117 crores

Consolidated reported PAT was INR 702 crores. India reported PAT was INR 1,567 Crores

Indian operations - India steel production grew by 23% YoY to 4.50 million tonnes in 1QFY20 with consolidation of Tata Steel BSL for the full quarter and higher capacity utilization at both Tata Steel Standalone and Tata Steel BSL. India steel deliveries jumped 19% YoY to 3.96 million tonnes in 1QFY20 as slowdown in the automotive sector was countered by higher sales in other segments. Industrial Products and Projects segment sales grew by 26%YoY. Branded products & Retail segment sales grew by 20%YoY. Automotive segment grew by 12%QoQ with the acquisition of Usha Martin Limited’s steel business. India revenues from operations for the year increased by 13%YoY to INR 21,129 crores driven by higher volumes. India1 adjusted EBITDA for the quarter was INR 5,117 crores. Adjusted EBITDA margin stood at 24.2% and adjusted EBlTDA per tonne was INR 12,908

European operations - During the quarter, Tata Steel Europe liquid steel production was impacted by planned shutdowns and unplanned outages. This coupled with sluggish demand adversely impacted delivery volumes. Tata Steel Europe continues to strengthen sales mix. It launched three new products during the quarter; higher-value differentiated product sales exceeded 39%. Revenue from operations de creased to INR 14,495 crores in 1QFY20 in line with lower deliveries. Operational issues and pressure on steel spreads impacted 1QFY20 profitability. However, Tata Steel Europe has initiated a transformation plan with an aim to make it self-sufficient and cash positive.

Source : Strategic Research Institute

voda 8 augustus 2019 16:36

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Italy to give ArcelorMittal Guarantees to Avoid Ilva Shutdown - Report

Reuters reported that Italy’s ruling coalition is set to offer ArcelorMittal, legal guarantees to ensure that it does not shut down the Ilva plant it bought last year. A government source told Reuters “The government of the right-wing League and the anti-establishment 5-Star Movement will add the new legal shield to a broader decree on industrial disputes approved by the cabinet on Tuesday. It will come into force at the end of this month. The government will offer a temporary and limited protection related to the commitments set out in the clean-up plan. There is no immunity for deaths at work or for pollution-related illness.”

In late June, the Italian parliament revoked the legal immunity that ArcelorMittal received as part of its purchase of the heavily polluting steel plant, Europe’s largest, which it promised to bring up to required environmental standards. The multinational has threatened to shut down the plant in the southern city of Taranto unless the legal protection, which ends at midnight on September 6, is restored.

In January, the European Court of Human Rights condemned Italy for failing to protect citizens from the plant, which has been blamed for hundreds of cancer-related deaths.

Source : Reuters

voda 8 augustus 2019 16:38

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Operational Creditors Can Challenge IBC Changes - SC

India’s Supreme Court has given a week’s time to the operational creditors of bankrupt Essar Steel to challenge the new amendments to the Insolvency and Bankruptcy Code, which granted more powers to the lenders. A bench led by Justice RF Nariman deferred the hearing on a batch of appeals till August 19 so as to decide the issue in light of fresh challenges following recent amendments. The bench said “You can challenge legislation as soon as it is passed.”

It also allowed former promoters of Essar Steel to challenge the recent amendments in the insolvency code after they informed the court on Wednesday of their intention to do the same.

Justice Nariman had also asked the parties to maintain status quo with regard to the acquisition of Essar Steel.

The apex court had on July 22 put on hold ArcelorMittal’s takeover of Essar Steel, after the lenders had sought a stay on the National Company Law Appellate Tribunal’s ruling that reduced their share of sale proceeds from 90 per cent to 60 per cent and also put the financial creditors and operational creditors at par in settlement of claims.

The Insolvency and Bankruptcy Code (Amendment) Bill, 2019 was passed by Rajya Sabha on 29 July and Lok Sabha on 1 August. It shall replace the 6 June ordinance. Among many amendments, it gives committee of creditors of a loan defaulting company explicit authority over the distribution of proceeds in the resolution process and fixes a firm timeline of 330 days for resolving cases referred to the IBC.

Source : Strategic Research Institute

voda 8 augustus 2019 16:39

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NLMK’s Embarks on Equipment Assembly for Stamp Charging at ltai-Koks

NLMK Group has embarked on the assembly of main process equipment to implement the stamp charging technology at its operating coke oven battery at Altai-Koks, a leading Russian manufacturer of metallurgical coke. Instead of the conventional top charging method, stamped charging involves feeding compacted coal briquettes into the oven horizontally. Stamping technology is being implemented at Coke Oven Battery No 5, the most advanced coke oven battery at Altai-Koks, launched in 2006. It has a design capacity of 1.1 mtpa. The project, which is worth a total of 4.5 billion rubles, will boost coke quality, reduce the cost of its production, and improve the environmental footprint of operations.

Stamping technology solutions are supplied by HuDe (Germany), a global leader in the field. Currently, construction of main reinforced concrete structures for the coal storage bunker equipped with stamping machines is being completed, installation of conveyors and machines for feeding stamped charge into the oven is underway. The revamped battery will be equipped with advanced and efficient off-gas collection and cleaning systems.

Source : Strategic Research Institute

voda 8 augustus 2019 16:39

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Masteel Vulnerable to Steel Price Fluctuations - MARC

According to Malaysian Rating Corp Bhd, Malaysia Steel Works Bhd’s stand-alone credit profile remains vulnerable to fluctuations in steel price, the cost of raw materials and increased competitive pressures in the Malaysian market. MARC said given Masteel’s relatively modest market position in the production of steel billets and bars, mainly for local consumption, these factors have weighed on its profitability margins. Nonetheless, the rating agency affirmed its AAA IS rating on Masteel’s RM130 million Sukuk Ijarah programme, with a stable outlook, based on the unconditional and irrevocable financial guarantee insurance provided by Danajamin Nasional Bhd. It said that “Noteholders are insulated from downside risks in relation to Masteel’s credit profile by the guarantee provided by Danajamin. Any changes in the supported rating or rating outlook will be primarily driven by changes in Danajamin’s credit strength.”

According to MARC, the domestic construction and property sectors’ challenging conditions have exerted pressure on steel suppliers. The situation is exacerbated by a major player entering the steel sector in October 2018, leading to a price war.

Consequently, domestic steel bar prices declined to RM2,225 per tonne by end-December 2018 (versus RM2,750 per tonne in January 2018), it said.

While Masteel increased its output and improved its product mix to include a higher proportion of steel bars, generating higher margins compared with that of steel billets, the company still recorded a weaker operating margin of 1.4% in 2018, mainly due to a decline in gross steel bar margins, coupled with impairments in inventory and higher administrative expenses.

Source : The Edge Market

voda 8 augustus 2019 16:43

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Ryerson Reports Second Quarter 2019 Results

Ryerson Holding Corporation reported results for the second quarter ended June 30, 2019. Ryerson achieved revenues of USD 1.20 billion, an increase of 14.0% compared to USD 1.06 billion in the second quarter of 2018, with tons shipped 14.7% higher and average selling prices down 0.7%. Excluding the results of our third quarter 2018 acquisition of CS&W, revenues for the quarter were USD 1.05 billion, flat compared to the same quarter last year with average selling prices 1.6% higher and tons shipped down 2.2%. Ryerson continued to gain market share during the second quarter of 2019 compared to the second quarter of 2018, as North American industry volume contracted 7.7% according to the Metal Service Center Institute, or MSCI, while Ryerson North American same-store tons shipped contracted by only 1.7%.

Gross margin was 17.6% for the second quarter of 2019, compared to 18.8% in the first quarter of 2019, and 17.5% for the same quarter last year. Included in cost of materials sold during the second quarter of 2019 was LIFO income of USD 12.9 million, compared to LIFO income of USD 20.1 million in the first quarter of 2019, and LIFO expense of USD 43.9 million in the second quarter of 2018. Gross margin, excluding LIFO was 16.5% in the second quarter of 2019 compared to 17.2% in the first quarter of 2019, and 21.7% in the second quarter of 2018. Margin compression during the second quarter was partially driven by mark-to-market hedging losses and inventory costs falling at a slower rate than average selling prices, most notably at CS&W which continues to work down its large inventory positions in carbon sheet products. A reconciliation of gross margin, excluding LIFO to gross margin is included below in this news release.

Warehousing, delivery, selling, general, and administrative expense increased by USD 25.7 million, or 18.5% in the second quarter of 2019, compared to the year-ago period primarily driven by the acquisition of CS&W. On a same-store basis, expenses decreased by USD 5.2 million, or 3.7%, compared to the second quarter of 2018. Warehousing, delivery, selling, general, and administrative expenses as % of sales increased to 13.7% in the second quarter of 2019 compared to 13.1% in the second quarter of 2018. However, on a same-store basis warehousing, delivery, selling, general, and administrative expenses as % of sales declined by 40 basis points year-over-year to 12.7%, demonstrating Ryerson's ability to effectively manage costs in any environment across an increasingly responsive variable cost structure.

Net income attributable to Ryerson Holding Corporation was USD 16.4 million in the second quarter of 2019 compared to USD 17.5 million in the prior year period. Ryerson achieved Adjusted EBITDA, excluding LIFO of USD 50.7 million in the second quarter of 2019, a decrease of USD 12.3 million compared to the first quarter of 2019 or USD 55.9 million less than the second quarter of 2018. A reconciliation of Adjusted EBITDA, excluding LIFO to net income attributable to Ryerson Holding Corporation is included below in this news release.

Mr Eddie Lehner, Ryerson's President and Chief Executive Officer, said that "I want to thank our customers for the opportunity to earn your business, which we never take for granted, and my Ryerson colleagues for strong execution in a challenging quarter. Ryerson exceeded our second quarter 2019 revenue guidance with higher tons shipped offset by average selling price declines that were in line with expectations. However, margins declined more than our guidance due to cost of goods sold declining at a slower than expected pace relative to inventory replacement cost. Ryerson's same-store business units executed well; however, we fell short of the guidance articulated during our first quarter of 2019 earnings call due to Central Steel & Wire inventory holding losses of $8 million on long physical customer program account positions, and mark-to-market hedging losses incurred during the quarter of approximately $10 million. Both of these occurrences were primarily a function of the steep drop in hot-rolled coil prices; however, we also experienced the lagging effects of higher cost inbound inventory as spot transaction prices began declining at an accelerating rate. With respect to the mark-to-market hedging losses in the quarter, we expect to regain a significant portion of this "prepaid" margin compression during the second half of 2019 as these hedges expire against the related shipments to our customers.
Eddie continued, "Even though the clock ran out in the second quarter as industry price conditions were bottoming, Ryerson meaningfully increased our book value of equity, generated significant cash from operating activities, and reduced our outstanding debt in the second quarter of 2019. We expect higher gross margin, excluding LIFO in the third quarter of 2019 given the positive inflection in hot-rolled coil and LME Nickel prices, along with a decline in average inventory costs during the period."

Source : Strategic Research Institute

voda 8 augustus 2019 16:44

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Austal & Aboitiz Ink MOA On Steel Fabrication Projects

Manila Times reported that Austal Philippines and Aboitiz Construction Inc have signed an agreement on steel fabrication works for Austal’s shipbuilding projects in Balamban, Cebu. Austal Chief Executive Officer David Singleton said a memorandum of agreement was signed between Austal Philippines and Aboitiz on July 24 for steel fabrications. Mr Singleton said that “We have specialized aluminum ships. They can do steel fabrication. We want to get more Filipino companies to get involved in the construction of ships in Balamban. We agreed that if we win a contract, we would look for them to do the steel fabrication. We will negotiate some works for them, if we win the contract. We found a great company here and we still look for local supply.”

Austal Non-Executive Chairman John Rothwell said they remain true to their commitment to the Philippines, wanting to make it the leading shipbuilding facility in the region. Austal Philippines has already built 17 ships. It has employed almost a thousand people in the Balamban shipyard. Mr Rothwell explained that “If we get government contracts and expand our operation, that will require us to build additional facilities. We could see further expansion here, thus, 100 more jobs will come as a result of new building of vessels.”

Aboitiz Construction Group is a major player in the country specializing in civil, industrial facility installation and steel fabrication works. It is known locally and internationally for consistently delivering process critical engineering, procurement and construction solutions.

Meanwhile, the construction arm of Aboitiz Equity Ventures Inc has finished the expansion of Australian shipbuilder Austal Philippines’ facilities in Cebu, boosting the latter’s capacity to produce more vessels.

Source : Manila Times

voda 8 augustus 2019 16:44

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Can South Africa Steel Industry Afford AMSA Any Longer - NEASA

NEASA said “According to ArcelorMittal South Africa, consumption of its steel has slumped to a ten-year low falling to 70% of the consumption level achieved in 2008. The foreign owned AMSA operates a 70 year-old antiquated steel mill which, both in terms of price and quality, cannot compete with international production facilities. However, instead of upgrading its mill, AMSA enjoys government protection, by means of import duties (currently 20%), in order to deter the Steel Downstream from importing cheaper, better quality steel. This arrangement severely disadvantages the Steel Downstream, causing it to be uncompetitive and serving as a slow poison, gradually leading to the decline of the Steel Downstream, AMSA’s client base. It is quite amazing that AMSA, benumbed by its own short term interests and survival, refuses to admit that the protectionist duties it convinced government to grant them, is contributing to the slump in South African steel consumption. The uncompetitive price of steel negatively impacts on the buying power of its customers – a vicious circle, a Steel Industry death spiral.”

AMSA’s antiquated steel mill is 60% less economic in terms of electricity usage. As a result, AMSA is currently pursuing tariff relief from Eskom. Should Eskom agree to that, the burden of paying for AMSA’s electricity usage will shift from AMSA to the South African public, including the Steel Downstream.

For AMSA to even contemplate such a scenario, within the context of the current steel/Eskom scenario is, to say the least, audacious. It clearly illustrates AMSA’s attitude – it is completely self-centred.

AMSA, South Africa’s steel monopoly, instead of investing to improve AMSA’s competitiveness, thereby offering to South Africa a quality product at a market related price, has become a liability to South Africa in general and the Steel Industry in particular.

South Africa Incorporated has inherited the albatrosses of the likes of Eskom, SAA, the SABC and all the dysfunctional state-owned enterprises. Over and above these burdens, AMSA is forced down the throat of the Steel Downstream.

Source : Neasa

voda 8 augustus 2019 16:45

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AMCON Takes Over Steel Firms for N3.6 Billion

Guardian reported that following the order of Hon Justice BFM Nyako of the Federal High Court Asset Management Corporation of Nigeria has taken over Bao Yao Futurlex Iron & Steel Company Limited in Abuja and Bao Yao Huan Jian Iron & Steel, Calabar, Cross River State. The order, therefore, mandates AMCON to take over all the assets of Bao Yao Huan Jian Iron & Steel Company Limited promoted by Mr Shen Yaozhang and General Idris Garba retired over a staggering indebtedness of over N3billion.

In compliance with the court order AMCON through Mr Robert Ohuoba, the Receiver who also received protective orders from the court has taken possession of Bao Yao Futurlex Iron & Steel Company Limited, Abuja.

The assets, which are now under AMCON include Bao Yao Futurlex Iron & Steel Company Limited, Abuja as well as Bao Yao Huan Jian Iron & Steel Company Limited, Calabar belonging to the obligors.

The order also froze all accounts of the companies in any financial institution in the name or belonging to the defendants, which include Bao Yao Futurlex Iron & Steel Company Limited; Bao Yao Huan Jian Iron & Steel Company Limited, Shen Yaozhang, Ji Yunfeng and Gen. Idris Garba (Rtd.) and all financial institutions served with the order.

Source : Guardian

voda 8 augustus 2019 16:45

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Canada Government Supports Tree Island Industries

Mr Joe Peschisolido, MP for Steveston Richmond East, on behalf of Mr Navdeep Bains, Canada’s Minister of Innovation, Science and Economic Development and Minister responsible for Western Economic Diversification Canada, announced CAD 1.0 million in funding for two Lower Mainland companies in the steel and aluminum sector. With CAD 1 million in funding, Tree Island Industries, a well-established steel wire manufacturer, will purchase equipment that uses drawn and galvanized wire to produce innovative, high-demand livestock fencing. This investment will help the company respond to market opportunities and create new jobs for local residents.

Dale MacLean, President and CEO Tree Island Steel, said "Tree Island Industries is very grateful to receive funding from Western Economic Diversification Canada to invest in state of the art equipment, helping drive our market expansion and sustainable growth with new and innovative products."

Source : Strategic Research Institute

voda 8 augustus 2019 16:46

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NLMK Group Signs Cooperation Agreements with Russia’s Leading Steel Traders

NLMK Group has signed cooperation agreements with leading players in the steel trading market: Metallservis and Steel Industrial Company, whose total sales in 2018 amounted to 4.3 million tonnes of steel products. As part of the partnership, traders will be able showcase their entire product range through NLMK’s nlmk.shop/ online marketplace, and gain access to NLMK’s marketing services and IT expertise. In exchange, Metallservis and Steel Industrial Company will share their customer service and logistics networks with NLMK Group. This will enable the companies to ensure prompt delivery of steel products to their customers through Russia’s largest shared network of more than 70 warehouses. NLMK’s marketplace will serve as a one stop shop for everything needed in the construction sector, offering more than 20,000 SKU’s and sizes. Buyers will benefit from complete customer service, from the processing and prepping, to the packaging and shipping of steel products.

Ilya Guschin, NLMK Group Vice President Sales, said “By expanding our geography and online offering, we are giving our customers the opportunity to cut logistics costs, save time, and mitigate risks. Coupled with our highly customer focused e-marketplace, this creates a unique value proposition for our buyers. We are happy to have two long-standing and reliable partners on board, and are confident that everyone will benefit from this cooperation.”

Source : Strategic Research Institute

Vertraagd	25 feb 2025 09:07
Koers	26,760
Verschil	-0,070 (-0,26%)
Hoog	26,760
Laag	26,520
Volume	99.239
Volume gemiddeld	2.623.177
Volume gisteren	1.746.632

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