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EC Starts AD Review of Welded Steel Pipes from Belarus, China and Russia

European Commission has initiated an expiry review of the antidumping measures applicable to imports of certain welded pipes and tubes of iron or non-alloyed steel originating in Belarus, China and Russia. The Commission has accepted the request made on October 25, 2019, by the Defense Committee of the welded steel tubes industry of the European Union. The investigation of a continuation or recurrence of dumping will cover the period from January 1, 2019, to December 31, 2019. The examination of trends relevant for the assessment of the likelihood of a continuation or recurrence of injury will cover the period from January 1, 2016, to the end of the investigation period.

The current measures, which entered into force in January 2015, consist of a definitive antidumping duty with rates of 90.6 percent for all Chinese companies, and 38.1 percent for all Belarusian companies. As for Russia, the rates amount to 16.8 percent in the case of TMK Group, 10.1 percent for OMK Group and 20.5 percent for all other companies

The product subject to this review is welded tubes and pipes, of iron or non-alloy steel, of circular cross-section and of an external diameter not exceeding 168.3 mm, excluding line pipe of a kind used for oil or gas pipelines, casing and tubing of a kind used in drilling for oil or gas, precision tubes and tubes and pipes with attached fittings suitable for conducting gases or liquids for use in civil aircraft, currently falling under CN codes ex 7306 30 41, ex 7306 30 49, ex 7306 30 72 and ex 7306 30 77.

Source : Strategic Research Institute
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Ministry of Corporate Affairs to Counter ED on JSW Steel BPSL Matter

Financial Express reported that the Ministry of Corporate Affairs is likely to counter the Enforcement Directorate’s contention that preferred bidder JSW Steel cannot seek to ring-fence Bhushan Power and Steel Limted and its assets after take over since Section 32A of the Insolvency and Bankruptcy Code does not apply retrospectively. Discounting ED’s contention as baseless, a senior government official said that the ED was perhaps interpreting Section 32A in isolation; while the MCA would take into consideration various other provisions of the IBC to interpret Section 32A.

In its affidavit to the National Company Law Appellate Tribunal (NCLAT) submitted on January 17, the ED said since the amendment came into force after JSW Steel’s resolution plan was approved, JSW Steel cannot seek benefits accrued under the Section. JSW Steel’s resolution plan for BPSL was approved by the National Company Law Tribunal on September 5, 2019; while Section 32A was notified on December 28, 2019.

The ED had in October 2019 attached BPSL assets worth over Rs 4,000 crore in connection with a money-laundering probe.

Source : Financial Express
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SSAB Reports Q4 and 2019 Results

SSAB CEO Mr Martin Lindqvist said “SSAB’s operating result for the fourth quarter of 2019 was SEK -1,131 million, down SEK 2,166 million compared with the fourth quarter of 2018. Lower earnings in the quarter were primarily attributable to SSAB Europe and SSAB Americas. Operating profit for the full year 2019 was SEK 2,159 (5,181) million, the decrease was mainly attributable to SSAB Europe. SSAB Special Steels’ shipments were at a low level during the quarter, primarily attributable to weaker business cycle and stock adjustments on the European market. Planned maintenance costs impacted the operating result, which was SEK -126 (-72) million. SSAB Europe’s shipments decreased to 752 (850) thousand tonnes, mostly driven by destocking both by end customers and distributors. The squeeze on margins continued and the costs of strike actions in Finland, around SEK 250 million, impacted fourth quarter earnings, which were SEK -609 (733) million. The fourth quarter operating result for SSAB Americas decreased to SEK -222 (553) million largely due to lower realized prices and somewhat higher costs for planned maintenance. Demand was relatively stable, although shipments were affected by the planned maintenance outage in Mobile.”

Voor cijfers, zie pdf.

Outlook “In North America, demand for heavy plate is estimated to be stable during the first quarter of 2020. In Europe, underlying demand is expected to increase from a relatively low level during the fourth quarter of 2019, when both end customers and distributors destocked. Global demand for high-strength steels is expected to increase during the first quarter, primarily related to Europe. For SSAB Americas, shipments during the first quarter of 2020 are expected to increase compared with the fourth quarter of 2019, which was affected by the planned maintenance outage in Mobile. SSAB Europe and SSAB Special Steels are also expected to increase volumes compared with the fourth quarter of 2019. Prices realized by SSAB Americas during the first quarter of 2020 are expected to be more or less unchanged compared to the fourth quarter of 2019. Prices realized by SSAB Europe and SSAB Special Steels are assessed to be somewhat lower during the first quarter of 2020.”

Source : Strategic Research Institute
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Conares Aims to Double Turnover

Mr Anoop Menon of Zawya reported that UAE based steel rebar maker Conares is aiming to double its turnover to AED 2 billion (USD 545 million) over the next two years by increasing capacity utilisation and growing exports with credit insurance. Conares CEO Mr Bharat Bhatia said “Our installed capacity in 2019 was around 700,000 tonnes. Out of that, we had sold around half-a-million tonnes, so we were at 75 percent utilisation. The installed capacity of one million tonnes became functional from the start of 2020.”

Mr Bhatia is hoping to use a credit insurance agreement with Etihad Credit Insurance to boost exports and double turnover. He said “The company was operating up to half a million tonnes with the existing bank lines or receivables discounting facility. He said “With our enhanced capacity, we believe we can achieve a turnover of AED 1.2 billion to AED 1.4 billion dirhams but with the support of ECI, we could cross AED2 billion in couple of years.”

Last week, the company announced it had signed up with ECI for a multi-buyer trade credit solution, which will minimise the risks connected to the exports of its products. The agreement also saw more than 10 banks come forward with investment support. Conares’ agreement with ECI will initially cover sale of USD 150 million worth of products. And, in a first for the UAE steel industry, the deal covers exports to the US, a key export destination for Conares and the EU.

Source : Zawya
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Danieli Revamps Two Roughing Stands at Liberty Galati Hot-Strip Mill in Galati

Danieli Service executed the on-site machining of two roughing stands at Liberty Galati hot-strip mill in Galati in Romania. The HSM revamp project consisted of geometrical re-alignment of mill windows by means of on-site machining and use of new technological equipment, including DanLiner wear plates, new and modified BUR and WR clamping systems, modified BUR change sledges, complete greasing system, and other minor spare parts.

Correct mill-stand geometry is essential for effective and accurate gauge control, strip/plate quality, and preventive maintenance of the mill and its associated parts. Cost savings are realized in terms of reduced spare parts consumption and down times caused by the same bearing failures.

A crucial aspect of the project was the short timeline allowed for executing the on-site machining and installation of the new equipment.

This project follows those completed at ArcelorMittal Termitau hot strip mill in Kazakhstan and Shouguan Jingtang hot strip mill in China.

Source : Strategic Research Institute
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Hydrogen Can Reduce Emissions for Steel Industry

Colorado based Rocky Mountain Institute has launched a new report highlighting the immediate emissions reduction potential of hydrogen as an alternative to fossil fuels across heavy industry. The report, titled, Hydrogen’s Decarbonization Impact for Industry: Near-term Challenges and Long-term Potential, underlines the positive role hydrogen could play in some industrial processes like steel production and heavy transport, regardless of how that hydrogen is produced. RMI’s new research shows that in many developed economies where power grids have less carbon dioxide intensive generation sources, such as the EU and the US, hydrogen produced through electrolysis can immediately start decarbonising the steel industry.

RMI’s Thomas Kock Bla said “What we found is that there is no reason to wait with transitioning the steel industry from current blast furnace technologies to using hydrogen. If we delay the fuel shift in heavy industry, shipping, trucking or other sectors, by the time there is a supply of green hydrogen at scale, we will already be overshooting a 1.5°C pathway.”

Additional findings from the report include:
For economies with a large portion of coal power in their grid, like India and China, hydrogen can still reduce emissions in the steel industry
Despite a lower CO2-intensity than most power grid-based hydrogen sources, there is no role for steam methane reform in decarbonising industry sectors unless successfully fitted with carbon capture and storage
Because electrolysis production with grid power will be at parity with SMR within the next 5-year period, EU and US policy should exclusively focus on electrolysis until CCS is a viable and scalable technology
The alignment of high-potential for CO2 reduction and the large-scale of off-takers in sectors like steel and shipping, where demand is naturally aggregated in ports, provides a pathway for policymakers to achieve demand at scale. This can significantly accelerate the cost reduction of electrolysis technologies.

Source : H2-View
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Markus Grolms to become Human Resources Director at thyssenkrupp Steel

Markus Grolms, Vice Chairman of the Supervisory Board of thyssenkrupp AG, is resigning from his position at the end of the Annual General Meeting on January 31, 2020. Grolms is union secretary of IG Metall and has been a member of the Supervisory Board as a union representative since 2009. Following the proposal of IG Metall, the Duisburg local court appointed Jürgen Kerner, Chief Treasurer and Executive Board member of IG Metall in Frankfurt, as a successor of Markus Grolms.

IG Metall has also informed thyssenkrupp AG that it will propose Markus Grolms for the soon to be filled position of Labor Director and Human Resources Director for thyssenkrupp’s steel business. thyssenkrupp Steel Europe AG is a montane co-determined company. For this reason the right to propose the role of Labor Director lies with IG Metall. Grolms is expected to assume his new role on April 1, 2020. The change is subject to the approval of the Supervisory Board of thyssenkrupp Steel Europe AG.

Source : Strategic Research Institute
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Iranian Steel Exports in 8 Months Surge by 28% YoY

According to the Iranian Steel Producers Association, a total of 6.78 million tonnes of finished and semi-finished steel products were exported from Iran during the first eight months ie March 21- November 21 of the current fiscal year, a 28.62% YoY increase. Semi-finished steel made up 4.37 million tonnes or more than 64.45% of the total export volume. Billet and bloom had the lion’s share of semis exports at 2.95 million tonnes to mark 48% YOY rise. Slab followed with 1.41 million tonnes, up 5% YOY.

Exports of finished steel products increased 25% YOY to reach 2.4 million tonnes. Long steel products had the biggest share of finished products’ exports with a total of 1.82 million tonnes (75.75%) to register 44% growth YoY. Rebar was the main export in this category with 1.55 million tonnes, registering a 59% increase YoY, followed by other types with 145,000 tonnes (up 25% YOY) and beams with 125,000 tonnes (down 27% YOY).

Source : Financial Tribune
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2015 Danieli Rebar Rolling Mill Available form Hilco

Global leader in industrial asset acquisition and disposition services, specializing in machinery, equipment and inventory auctions and negotiated sales Hilco Industrial has acquired a state of art 500,000 tonnes per year rebar mill from Posco Yamato SS Vina, which has withdrawn from rebar segment to focus on sections. Hilco will start marketing the 500.000 TPY Rebar Mill, which was installed in 2015 and started operations in 2016. The Danieli Morgardshammar rebar mill is consisting of walking-beam furnace with state-of-art regenerative burner combustion, 18 Mill Stands, QBT System, Cold Shear, Bundle & Binding etc. Hilco VP Marketing & Sales Mr Darko Pepovski said “This is a unique opportunity to purchase a very modern Rebar Rolling Mill, which only operated for 4 years. The Rebar Mill was built by Danieli Morgardshammar, a combination of Swedish technology and Italian passion for metals in over 150 years applied in 500 plants.”

To arrange an inspection appointment, access more detailed information about the assets being sold, or learn specific information about the private treaty sale process please contact: Darko Pepovski dpepovski@hilcoglobal.com +31 20 470 0989.

Source : Strategic Research Institute
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Current Steel Prices Are Sustainable - Mr Seshagiri Rao of JSW Steel

CNBC TV18 reported that JSW Steel’s Joint MD & Group CFO Mr Seshagiri Rao said that the company's performance is reasonably well and the prices are sustainable. He said "Prices will sustain. There is an upside from here on for increase in prices. The price increase which has happened from November to January that impact will come for the full quarter. So, I think this restocking cycle will continue for some more time.”

He said "EBITDA per tonne, we don't give the guidance but what I can explain as far as the last quarter is concerned, there is INR 6,620 per tonne on a standalone basis. This also includes INR 250 crore assignment fee which we have received on the assignment of some contract. So, that amount if we can adjust, it will come down by approximately INR 600 per tonne. But at the same time on a consolidated basis the inventory losses in the last quarter was around INR 300 crore, so that will translate to INR 740 per tonne which may not be there in this quarter. So, INR 740 plus and INR 600 minus, then net-net there is an increase of more than INR 100 per tonne in the EBITDA for which we have reported the number of INR 6,620.”

JSW Steel reported a consolidated net profit of INR 187 crore for October-December, almost 88 percent lower than the INR 1,603 crore it reported in the previous year.

Source : CNBC TV18
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AISI Update on Raw Steel Production in US in Week 04

In the week ending on January 25, 2020, domestic raw steel production in US was 1,919,000 net tons while the capability utilization rate was 82.3 percent. Production was 1,871,000 net tons in the week ending January 25, 2019 while the capability utilization then was 80.4 percent. The current week production represents a 2.6 percent increase from the same period in the previous year. Production for the week ending January 25, 2020 is down 0.5 percent from the previous week ending January 18, 2020 when production was 1,928,000 net tons and the rate of capability utilization was 82.7 percent.

Adjusted year-to-date production through January 25, 2020 was 6,855,000 net tons, at a capability utilization rate of 82.3 percent. That is up 2.6 percent from the 6,683,000 net tons during the same period last year, when the capability utilization rate was 80.4 percent.

Broken down by districts, here's production for the week ending January 25, 2020 in thousands of net tons: North East: 233; Great Lakes: 681; Midwest: 211; Southern: 709 and Western: 85 for a total of 1919.

Source : Strategic Research Institute
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Turkish Steel Exports to US and EU Drop Substantially in 2019

According to data by the Turkish Steel Producers Association TÇÜD, Turkey's steel exports to the US and European Union market have dropped nearly 2.7 million tonnes between January and November 2019 due to additional protection tariffs imposed. Turkish steel industry's total exports to the US decreased to 309,000 tonnes during that period, which was recorded at 1.1 million tonnes the year before and exports to the EU also decreased to 7.1 million tonnes from a previous number of 9.6 million tonnes.

TÇÜD Secretary-General Veysel Yayan told Anadolu Agency that the protectionist measures imposed by the US and EU gained momentum after China occupied the world steel markets in 2018. The total exports of China's steel industry to Turkey increased to 3 million tonnes from only 400,000 tonnes in a two-year period.

Mr Yayan also stressed that a total of 108 probes into protectionist tariffs, damping and compensatory transaction taxes, were initiated worldwide in 2019 alone, a significant amount of which interest Turkey.

Speaking on the expected developments in the upcoming period, Yayan said steel consumption is set to increase in 2020, which is expected to be positively reflected in several sectors, including construction, automotive and white goods.

Source : Daily Sabah
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US DoC Finds Dumping in Imports of Fabricated Structural Steel from Canada, China, and Mexico

US Department of Commerce announced the affirmative final determinations in the antidumping duty and countervailing duty investigations of imports of fabricated structural steel from Canada (AD only), China and Mexico, and a negative final determination in the CVD investigation of FSS from Canada. Commerce determined that producers and/or exporters from Canada, China, and Mexico have sold FSS at less than fair value in the United States at rates of: 0-6.70 percent, 61.71-154.14 percent, and 0-30.58 percent, respectively. In addition, Commerce determined that producers and/or exporters from China and Mexico received countervailable subsidies at rates of 27.34-206.49 percent and 0.01-68.87 percent, respectively. Because Commerce reached a negative CVD determination with respect to producers and/or exporters from Canada, this investigation is terminated and no CVD duties will be collected on imports from Canada.

In 2018, imports of FSS from Canada, China, and Mexico were valued at an estimated USD 722.5 million, USD 897.5 million and USD 622.4 million, respectively.

The petitioner is the American Institute of Steel Construction Full Member Subgroup in Chicago in Illinois in US.

The US International Trade Commission is scheduled to make its final injury determinations on or about March 9, 2020. If the ITC makes affirmative final injury determinations, Commerce will issue AD and CVD orders. If the ITC makes negative final determinations of injury, the investigations will be terminated, and no orders will be issued.

Source : Strategic Research Institute
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Odisha Slurry Pipeline CoC to Go with ArcelorMittal bid

Mint reported that lenders to Odisha Slurry Pipeline Infrastructure Ltd intend to stick with ArcelorMittal’s bid for the distressed asset, despite Thriveni Earthmovers’s legal challenge as Thriveni’s upgraded offer of INR 4000 crore for the asset appears to have left the lenders unmoved. A member of OSPIL’s CoC told Mint “If the committee of creditors takes a decision on the resolution plan, it is final. That much has been settled by the courts. Thriveni has not made any material improvement to its bid. We don’t think the court will favour their appeal."

Earlier this month, Thriveni Earthmovers had raised its offer for the distressed iron ore slurry pipeline to INR 4,000 crore. This was higher than the offer of INR 2,200 crore by the only other bidder ArcelorMittal. Thriveni’s bid included an upfront cash payment of only INR 8 crore, while the rest of the amount was proposed to come in tranches. When lenders rejected Thriveni’s revised bid, the latter challenged the decision at the Cuttack bench of the National Company Law Tribunal.

OSPIL owns and operates a 253-km pipeline that connects iron ore mines in Dabuna, Odisha, to a pelletisation plant in Paradip. Essar Steel, which had commissioned the pipeline, sourced about half of its iron ore needs for its plant in Hazira, Gujarat, from Dabuna.

Source : Mint
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Steel Imports into US in 2019 down by 17% YoY

Based on preliminary Census Bureau data, the American Iron and Steel Institute reported today that the US imported a total of 1,553,000 net tons of steel in December 2019, including 1,347,000 net tons of finished steel (down 0.5% and up 1.2%, respectively, vs. November final data). For full year 2019 total and finished steel imports are 27,905,000 net tons and 21,042,000 net tons, down 17.3% and 18.1%, respective, vs. 2018. Finished steel import market share was an estimated 15% in December and is estimated at 19% for full year 2019. For full year 2019, the largest offshore suppliers were South Korea (2,576,000 net tons, down 7%vs. the same period in 2018), Japan (1,242,000 net tons, down 10%), Germany (1,048,000 net tons, down 22%), Taiwan (828,000 NT, down 23%) and Vietnam (663,000 net tons, down 40%). Below are charts on estimated steel import market share in recent months and on finished steel imports from offshore by country.

Voor cijfers, zie pdf.

Source : Strategic Research Institute
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GMS Market Commentary on Shipbreaking in Week 4 -Sudden surge;

A sudden surge of tonnage pre-Chinese New Year holidays has started to put pressure on recycling markets once again, particularly as the already limited number of Recyclers of large LDT tonnage has started to get booked up. There is a shortage of capable and performing end buyers, especially those whose banks will sanction large Dollar value LCs on the heavier lightweight units, Capesize bulkers, VLOCs and VLCCs, and this seems to be with the exception of tankers one of the most active sectors for the recycling of older assets at present.

After a stunning surge which saw prices improve by over USD 35/LDT over December and the early part of January, consecutive days of steel declines in India have started to put downward pressure on the local market. As such, it is worth issuing a cautionary note as we head into the long Lunar / Chinese New Year holidays this week that there may ensue several weeks of softer activity and dampened prices / demand as a result.

If the current trends persist, with poorer freight rates particularly on dry bulk vessels, then the markets may well see a deluge of tonnage for recycling after the holidays and that will certainly put downward pressure on prices once again, just as some improved levels and market stability had started to be seen of late.

Prices in both India and Bangladesh have surged above the USD 400/LDT mark in recent times (particularly for favored container units), but all of that could be in danger if supply starts to outstrip demand and fundamentals suffer going into February.

Source : Strategic Research Institute
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US Grants Exemption to Tata Steel Netherland for Packaging Steel Imports

Dutch Foreign Trade Minister Ms Sigrid Kaag told reporters that the US has agreed that laminated steel, used in packaging, manufactured in Tata Steel Netherlands would be exempt from a 25% tariff announced by the administration of President Donald Trump in June 2018, saving consumers and the company up to 100 million euros annually in tariff costs. She said “The import tariffs on laminated steel have been retracted and that’s wonderful news for Tata Steel. It’s good for us, and good for Dutch employees.”

Tata spokeswoman Ariane Volz said.that “Around 100,000 tonnes of the company’s 531,000 tons of steel exports to the US were covered by the exemption. This is very good news, we are very happy with the minister’s efforts. Exemption will last for a period of one year, and must then be extended.”

Since 2018, US companies wishing to import the type of steel, which is not produced in the US, had been forced to seek tariff exemptions on a case-by-case basis.

Source : Reuters
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Hangda Steel Orders Rebar Mill from Danieli

Chinese enterprise Sichuan Derun I&S Group Hangda Steel Co signed an order for the supply of a new1.5 million tonnes per year mill to roll rebar products in the range from 12 to 40 mm diameter at rates up to 240 tonnes per hour, starting from 170-mm billets weighing up to 2,600 Kg. The main equipment to be installed in Dazhou, Sichuan province, China, consists of four housingless stands followed by two, four-pass finishing blocks. Through an advanced, multi-strand slit-rolling system, rebars from 12to 22 mm diameter will be rolled on two strands at finishing speeds of 45 mps. The plant will be equipped with a water cooling system for on line cooling of bars, in order to obtain a final product with Ultra Fine Grain structure. The UFG process allows product flexibility, low deviation for mechanical properties, stable and tight product tolerances, and OpEx savings, varying according to the product mix, all while supporting high production rates. A double high-speed twin channel arrangement will complete the installation, to perform the fast discharge of the bars on the cooling bed.

The high-speed technological equipment will be manufactured at Danieli HQ and integrated with the equipment manufactured by Danieli China.

Startup is foreseen for August 2020.

Source : Strategic Research Institute
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Delhi HC Dismisses Bail Plea of Former BSL CFO Mr Nittin Johari

Delhi High Court dismissed the bail plea of Bhushan Steel's former chief financial officer Mr Nittin Johari, who was arrested by the SFIO for alleged fraudulent activities. The verdict by Justice Brijesh Sethi came after the Supreme Court set aside the bail granted to Mr Johari by the high court in August last year and asked it to hear the matter afresh. In its order, the high court had said that it became evident that the mind and will of the accused company are the main accused Brij Bhushan Singal and Neeraj Singal, who had been actually controlling the company.

The apex court's order had come on an appeal by the Serious Fraud Investigation Office challenging the August 14, 2019 order of the high court. SFIO had said Mr Johari was managing the affairs of Bhushan Steel and was looking after raising of funds from banks and financial institutions and was also one of the signatories to the financial statements of the company till fiscal year 2016-17. SFIO had said that during the probe it found there were several alleged fraudulent practices at the company, including manipulations of accounts and financial statements during the term of Mr Johari.

Mr Johari was arrested by SFIO on May 2, 2019 for alleged fraudulent activities, including filing false documents with various banks.

Source : Strategic Research Institute
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Nordmetall adds Gefertec arc403 System for 3D Printing of High-Strength Steel Parts

Neukirchen Germany based materials testing specialist Nordmetall GmbH has acquired an arc403 system for wire-arc metal Additive Manufacturing from Gefertec GmbH, Berlin, Germany. The addition of the new machine is expected to improve its process technologies as it undertakes R&D projects aimed at advancing technologies for the production of components from high-strength steels.

Gefertec’s arc403 uses the company’s 3DMP® process, based on arc welding technology using wire as the starting material. The advantages of wire-arc metal AM include the build speeds available, the ease of handling wire feedstock as opposed to loose powder, and the feedstock’s comparative affordability. The arc403 enables 3-axis production of metal components to a maximum mass of 800 kg.

Source : Strategic Research Institute
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