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Vale May Close Malaysia Teluk Rubiah Maritime Terminal over Coronavirus COVID-19 Shutdown

Vale announced that it could temporarily halt its distribution center in Malaysia Teluk Rubiah Maritime Terminal Vale said “Vale is communicating with the authorities to clarify supposed restrictions imposed by the local government on transportation between cities, what could limit the access of workers to TRMT. In that scenario, vessels heading to TRMT will be redirected and redistributed among our blending facilities in China with no expected impact on production and sales volume in 2020, but with an impact on sales of approximately 800.000 tonnes in 1Q20. An immaterial cost increase is expected due to additional logistics.”

The Teluk Rubiah Maritime Terminal handled 23.7 million tonnes of iron ore shipments in 2019. The Teluk Rubiah terminal serves as a blending facility for Brazilian Blend fines, or BRBF, which comprise Carajas fines from Vale's Northern and Southern Systems. After blending, the iron ore fines are exported from the facility for the Asian seaborne market.

Source : Strategic Research Institute
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Thyssenkrupp May Cut Steel Production as Coronavirus COVID-19 Shuts Automakers

Reuters reported that Thyssenkrupp is considering shortened working hours as carmarkers reduce or suspend production due to the coronavirus crisis. Thyssenkrupp board member Oliver Burkhard said“We want to keep employed as many employees as possible, even if we are partially running out of work. To do so we will be looking at all options, including short-time working allowances.”

The car industry is Thyssenkrupp’s single biggest customer group, buying numerous components and steel parts from the steel-to-submarines conglomerate. Earlier this week, several carmakers introduced far-reaching production cuts due to the spread of the coronavirus, raising the question of when their suppliers would follow suit.

Source : Strategic Research Institute
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Beltrame Group Stops Activity in France over Coronavirus COVID-19

Given the evolution of the Covid-19 epidemic, LME-BELTRAME GROUP priority is to prevent the health and well-being of its employees and their families. It said “For this reason and because we all need to face this situation and contain the virus, the decision to stop all direct and indirect activities was taken from today up to the 31st of March 2020 included. We all need to be responsible in those days. Please protect yourself, protect the others and respect the prevention rules. All together we can fight this epidemic and win.”

Beltrame Group manufactures rolled sections for construction, shipbuilding and excavation.

Source : Strategic Research Institute
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BlueScope Withdraws Earnings Guidance over Coronavirus COVID-19

Australian steel mill BlueScope advised that the outlook for underlying earnings before interest and tax in 2H FY2020 was similar to 1H FY2020 (which was S302.4 million). At the time the Company noted that the expectations were subject to spread, foreign exchange and market conditions - including impacts from COVID-19. It said “Unaudited Group performance during the half to date has been in line with our expectations. Demand in Australia has remained robust, led by building sector and distribution channel demand. North Star despatch volume and spreads have remained stable, and performance across the Building Products and New Zealand & Pacific Steel segments has been in-line with expectations. Our China operations are ramping-up in line with the progressive resumption of business activity across the country. Over the past few weeks, the increasing rate of COVID-19 transmission across the globe has seen a rapid expansion in the measures taken by governments to slow the rate of infection, with a corresponding decline in sentiment and economic outlook. Most recently we have experienced business interruption due to national shutdown in Malaysia, and overnight it was announced that a number of automakers in North America would temporarily cease production. It is not yet clear what impact this will have on North Star's despatch volumes. Given this unprecedented environment and economic uncertainty, BlueScope believes it is prudent to withdraw its outlook for 2H FY2020.”

BlueScope Managing Director and CEO Mark Vassella said "As ever, the safety and wellbeing of all BlueScope people is our most important priority. Across our global footprint, business units are implementing measures to reduce the chance of COVID-19 transmission in the workplace, and they have protocols in place to look after any employees who contract the virus, and their colleagues. In recent years BlueScope has put a lot of work into transforming the business and is well equipped to operate in this challenging environment. The balance sheet is strong, with net debt at 31 December 2019 of $47 million, or S358 million net cash including the impact of operating lease capitalisation, and liquidity of $2.5 billion. We are in a strong position to withstand these uncertain times and for when the virus risk recedes and economies rebound.”

Source : Strategic Research Institute
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ATI Realigns Business Portfolio to Accelerate Profitable Growth

Allegheny Technologies Incorporated (announced a realignment of its business segments to further enhance its position as a leading specialty materials manufacturer and to accelerate sustainable long-term profitable growth. Starting with first quarter 2020 financial results, ATI will report in two business segments: a streamlined High Performance Materials & Components segment and the new Advanced Alloys & Solutions segment. As a result of this business realignment, the Company expects total annualized operational and commercial synergies of approximately $7 million by year-end 2021 and $15 million by year-end 2022.

Additionally, the Company today announced the next step in its proactive cost reduction efforts, building on the previously announced restructuring program, with a voluntary retirement incentive program for eligible salaried employees. In addition to the $4.5 million restructuring charge taken in the fourth quarter 2019, ATI expects to record a charge of approximately $8 million in the first quarter 2020 for this voluntary retirement program. Once fully implemented, these combined cost reduction programs will generate annualized benefits of $14 million.

ATI’s re-aligned business segments, HPMC and AA&S, will both meaningfully contribute to ATI’s success, creating shareholder value through enhanced growth opportunities, managed working capital efficiency gains, and cost reductions.

High Performance Materials & Components (HPMC) includes the Specialty Materials and Forged Products business units and will continue to be led by Executive Vice President John Sims. The updated HPMC segment intensifies its primary focus on maximizing aero-engine materials and components growth, with more than 80% of its revenue derived from the aerospace and defense markets. These closely connected businesses will work to further optimize material pull-through; reducing total costs and improving inventory efficiency.

The HPMC segment includes:

Forged Products
Broad range of forging capabilities, including iso-thermal and hot-die, for aerospace & defense and other high-performance applications

Specialty Materials
Broad range of nickel, cobalt, and titanium-based alloy mill products and powders in a variety of forms, including additively produced parts, primarily for aero-engine and airframe applications.

Source : Strategic Research Institute
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Acerinox Formalises Acquisition of VDM Metals

Acerinox has formalised the acquisition of VDM Metals having received authorisation from the European, US and Taiwanese competition authorities. CEO of Acerinox, Bernardo Velázquez, and the President and Managing Partner of Lindsay Goldberg Vogel (former holding company of VDM Metals), Thomas Ludwig, signed the agreement, through their representatives, for the company with headquarters in Germany to form part of Acerinox. The transaction is valued at EUR 532 million, of which Acerinox disbursed EUR 310 million yesterday, assuming debts of EUR 57 million, giving rise to a valuation of 5.5 times EBITDA before synergies.

The new Group company is a global leader in the development and manufacture of special nickel alloys, as well as high-performance stainless steels, and is recognised as a R+D+I benchmark in the industry.

VDM has 7 production plants in Germany and the US and almost 2,000 employees. This structure joins the six factories the Group already has on four continents. The Group is also present in 57 countries as a result of its commercial network, which serves more than 12,000 customers across 81 countries. In 2018/19, VDM achieved sales of EUR 852 million and EBITDA of EUR 97 million. Its incorporation into the Group will enable its net sales and billings to increase by more than 20%.

Source : Strategic Research Institute
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Amreli Steels Reports Breakdown in Reheating Furnace

The Amreli Steels Limited informed the Pakistan Stock Exchange that its rolling mill would remain non-operational for 10 days that might result in decline of rebars’ production of up to 8,000 tonnes for the quarter ending March 31, 2020. Company’s secretary Adnan Abdul Ghaffar informed that “They had encountered an unexpected breakdown in their re-heating furnace at their re-rolling plant situated at Dhabeji and that the teams were working to fix the fault and resume the production facility as early as possible. However, it may be clarified that our Steel Meltshop located at Dhabeji and Rolling Mill located in SITE area Karachi remains operational.”

Talking to Pakistan Today, Misha Zahid, an investment analyst at the Arif Habib Limited, said the re-rolling mill at the Dhabeji plant has an annual capacity of 425,000 metric tonnes. Hence, as per the management, the 10-day closure translates into a loss of 8,000 metric tonnes, she added.

Amreli Steels has an annual capacity of 425,000 tonnes and was previously expected to sell 320,000 tonnes in FY20.

Source : Strategic Research Institute
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Cleveland-Cliffs Completes Acquisition of AK Steel

Cleveland-Cliffs Inc announced that it has successfully completed the acquisition of AK Steel Holding Corporation, integrating North America’s largest producer of iron ore pellets downstream into the production of value-added steel and specialty manufactured parts for the automotive industry. The combined company will be led by Chairman, President and Chief Executive Officer Lourenco Goncalves.

Mr. Goncalves said “This is a new era for Cleveland-Cliffs as a producer of differentiated, high quality iron ore, metallics and steel in North America. The new Cliffs will begin from a unique position of strength in our industry, with a dynamic combination of assets including two efficient integrated blast furnace steel mills, two electric arc furnace plants, a new state-of-the-art HBI plant and several other highly technologically developed facilities. We will be catering to a desirable customer base and primarily doing business in the United States, the most resilient manufacturing economy in the world. I am honored to be leading a Company that is built on such a rich history, and now combines mining, pelletizing, direct-reduction, EAF steelmaking, BF/BOF steelmaking, highly technologically developed finishing mills and automated manufacturing of auto-parts.”

Mr. Goncalves concluded “I am also very pleased to welcome the AK Steel employees and the unions representing the workforce throughout the country to the Cleveland-Cliffs family. From now on, we are a single, united and very strong team.”

Source : Strategic Research Institute
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Tenaris to Temporarily Suspend Operations at US Facilities

Tenaris announced that it will be reducing its workforce in the US due to the abrupt, sharp decline in the price of oil and subsequent decrease in market activity. It said “Employees at Tenaris’s Koppel and Ambridge, Pennsylvania, facilities have been informed that operations at the two plants will be suspended effective March 31, 2020. Operations at its threading plant in Brookfield Ohio will be suspended as of April 17, 2020. Tenaris will also be implementing employee reductions at its facilities in the southern region, at its threading plant in Baytown TX and at its Hickman AR welded pipe plant, effective April 17, 2020.”

The adjustments across the facilities will result in the layoff of more than 900 employees.

Given the ongoing coronavirus outbreak, Tenaris will be offering employees being laid off three months of COBRA health insurance with the possibility of being extended should the outbreak persist.

Source : Strategic Research Institute
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Tata Steel Europe Outlines Measures to Caobat Coronavirus COVID-19

Tata Steel Europe said “The health and safety of employees is the company’s number one priority. In line with increased action by national governments, Tata Steel in Europe has updated measures to reduce risk to its employees across all sites. Additional resources are being put in place to increase hygiene and reduce social contact for all employees. Strict travel restrictions are being implemented and employees are being asked to work from home as much as possible.

Tata Steel notes that the impact of the outbreak on steel-using industries is varied. While demand is steady in some sectors, production pauses in the European automotive sector are expected to have a knock-on impact on steel supply.

In line with customer demand, Tata Steel has made production adjustments at some of its European steel mills. To date, the impact of these changes on its steelmaking hubs in IJmuiden and Port Talbot has not been significant.

Given this is a fast-moving situation, Tata Steel is working closely with customers and suppliers to reduce possible impacts from the coronavirus outbreak and restrictions.

Tata Steel will continue to monitor the situation and is working with its suppliers and customers to ensure safe and stable trading.

Source : Strategic Research Institute
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AISI Urges US Administration to Designate Steel as Essential Industry

The American Iron and Steel Institute has urged the Trump administration to identify the steel manufacturing sector and its workers as essential when drafting and enforcing shelter-in-place orders and other directives in response to the COVID-19 pandemic. n a letter to Vice President Pence, Thomas J. Gibson, president and CEO, said, “As the Secretary of Commerce determined in 2018, steel is important to national security well beyond obvious defense applications to encompass critical infrastructure and transportation, electric power and energy generation systems, as well as water systems. Without access to a reliable source of steel production during this crisis, our national and economic security will be severely impacted.”

He wrote “We appreciate the efforts of the administration to limit the spread and impact of the COVID-19 pandemic. As businesses across the nation have been ordered by many state and local governments to limit or cease operations in recent days, several states have specifically exempted industrial manufacturing as ‘essential.’ We urge the Trump administration to provide consistent nationwide guidance by formally recognizing critical manufacturing sectors that are essential to our country’s critical infrastructure and the response to COVID-19. I urge the administration to identify the steel manufacturing sector and its workers as essential when drafting and enforcing shelter-in-place orders and other directives.”

Source : Strategic Research Institute
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Turkey Challenges EU Steel Import Curbs at WTO

Turkey has launched a legal challenge at the World Trade Organization against curbs on steel imports imposed by the European Union after the effective closure of the U.S. market. Turkey’s challenge to the WTO says that the European Commission, which oversees trade policy in the European Union, failed to make adequate findings and conclusions, including that EU producers were threatened with serious injury.

The European Union set quotas on imports of 26 grades of steel in July 2018 over concerns the EU market would be flooded with steel after US President Donald Trump imposed tariffs on steel coming into the United States. The EU has set import quotas, to run until July 2021, with 25% tariffs applying once those quotas are filled.

Source : Reuters
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Nucor Announces Guidance for First Quarter of 2020 Earnings

Nucor Corporation announced guidance for its first quarter ending April 4, 2020. Nucor expects first quarter earnings to be in the range of $0.95 to $1.00 per diluted share. This range is an increase compared to fourth quarter of 2019 earnings of $0.35 per diluted share and a decrease compared to first quarter of 2019 earnings of $1.63 per diluted share. Included in the fourth quarter of 2019 earnings were non-cash impairment charges of $66.9 million, or $0.17 per diluted share. Included in the first quarter of 2019 results was a benefit of $33.7 million, or $0.08 per diluted share, related to the gain on the sale of an equity method investment in the raw materials segment.

It said “We expect earnings in the steel mills segment to increase in the first quarter of 2020 as compared to the fourth quarter of 2019 (excluding the fourth quarter of 2019 impairment charge), due to increased average selling prices, primarily at our sheet, bar and plate mills, and expected higher volumes. We expect the profitability of the steel products segment in the first quarter of 2020 to decrease as compared to the fourth quarter of 2019 (excluding the fourth quarter of 2019 impairment charges) due to normal seasonality. We expect the performance of the raw materials segment to increase in the first quarter of 2020 as compared to the fourth quarter of 2019, due to an improvement in pricing for raw materials, the absence of the impairment charge related to our proved producing natural gas well assets and improved performance at our DRI facilities. Order rates, backlogs and utilization rates at our steel mills have remained strong well into March, which reflects strong underlying demand in nonresidential construction and other end-use markets.”

Nucor said “Thus far the impacts of COVID-19 on our supply chains and operations have been minimal. However, more severe impacts are probable as economic activity is disrupted by construction sites being shut down in some major cities and other business interruptions. It is too early to gauge how significant those impacts will be for the balance of the year. We are carefully monitoring this evolving situation. Additionally, we are monitoring the recent volatility in the commodity and financial markets, and any potential future impacts on our operations and on those of our suppliers and customers.”

Source : Strategic Research Institute
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SAIL Outlines Measures to fight Coronavirus COVID-19

Steel Authority of India Limited has implemented various preventive measures across all its Plants, Units and offices against the spread of COVID-19. A host of preventive actions have been spearheaded across the Company on a war footing. Broad-based general guidelines/measures for a scaled response on the management of COVID-19 at all SAIL Plants & Units have been prepared and extensively circulated across SAIL. The social distancing is being promoted along with several other pre-emptive macro measures. It is being monitored on a daily basis. These macro measures by SAIL include facilitating pregnant employees and employees with critical / vulnerable medical conditions to avoid exposure / cross-infection, adequate preparations to run canteens during any contingencies, massive awareness campaigns using visual communications like posters, banners, hoardings etc. Other measures include increased cleaning of the common areas like door, handles, washbasins, taps, lifts stairways etc., introducing adequate sanitizing facilities at several locations , use of proper disinfectants for mopping and cleaning floors and office premises, temporary closure of Company’s schools, clubs, gyms, swimming pools, stadiums, sports academies etc. Quarantine facilities at SAIL hospitals and Occupational Health Service centres inside the plants, townships have been being augmented and kept in readiness along with making isolation wards in the SAIL hospitals.

As a preventive measure, the Company has restricted travels and majority of the meetings are being conducted through video conferencing. A clearly defined communication protocol has been prepared to meet exigencies across SAIL Plants and Units. Apart from taking preventive measures, the Company has also put in place contingency plans, SOPs, protocols and plan for manning of all critical operations in the Plants & Units in the event of any eventuality.

Source : Strategic Research Institute
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Tenaris Announces Layoffs at Prudential Facility

Tenaris announced layoffs at its welded steel pipe manufacturing facility in Calgary in Alabama in US. The company anticipates the layoffs of approximately 110 union employees as of April 1. The announcement was made in a town hall meeting today with employees and union executives. A restart date has not yet been determined. It said “With the recent decline in commodity prices, corresponding capital budget cuts in the oil and gas sector, a rise in foreign imports, unfair competition, and a global downturn due to the coronavirus pandemic, the forecasted demand for the welded steel pipe products produced at Prudential have reached a level where operations must be curtailed to match market conditions.”

This announcement does not impact the company’s seamless steel pipe manufacturing facility, AlgomaTubes, in Sault Ste Marie ON and a premium threading and accessories facility in Nisku AB. The decision for Prudential will also not affect operations in its distribution centres in Grande Prairie and Sherwood Park AB and Bienfait SK.

Source : Strategic Research Institute
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Steel Dynamics Provides First Quarter 2020 Earnings Guidance

Steel Dynamics Inc has provided first quarter 2020 earnings guidance in the range of $0.83 to $0.87 per diluted share. Comparatively, the company's sequential fourth quarter 2019 earnings were $0.56 per diluted share and prior year first quarter earnings were $0.91 per diluted share. Fourth quarter 2019 results included refinancing costs of $0.01 per diluted share and lower earnings of approximately $0.05 per diluted share associated with planned maintenance outages at the company's two flat roll steel mills.

First quarter 2020 earnings from the company's steel operations is expected to be meaningfully higher than sequential fourth quarter results, due to increased shipments across the platform, most notably for the company's long products steel group. Average quarterly steel product pricing is expected to increase during the quarter, offsetting the rise in scrap costs resulting in steady metal spread. Profitability has improved throughout the steel platform.

The customer order backlog for the company's steel fabrication platform is at a record high level and customers currently remain constructive concerning non-residential construction projects. At this time, projects have not been delayed or canceled. First quarter earnings from the company's steel fabrication operations are expected to be strong, but lower than near-record sequential fourth quarter results due to seasonally lower shipments.

As scrap prices stabilized and increased in the quarter, first quarter 2020 profitability for the company's metals recycling platform is expected to improve when compared to sequential fourth quarter results, based on increased volume and metal margin expansion.

It is too early to determine the scope of the negative impact that will occur from the coronavirus (COVID-19) on global economies, and the related impact to the domestic economy and steel demand environment. At this time the company's steel and steel fabrication order backlogs are strong and customer order activity has remained steady. However, given the continued spread of COVID-19 and recent announcements concerning temporary closures of steel consuming businesses in an attempt to slow the virus in the United States, the company expects these events to impact order activity in the coming weeks. The company believes trade protections that are already in place will continue to limit the amount of unfairly traded steel products coming into the United States, providing additional support for domestic steel mill utilization.

Source : Strategic Research Institute
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Wereldwijde staalproductie groeide in februari

FONDS KOERS VERSCHIL VERSCHIL % BEURS
ArcelorMittal
7,45 -0,08 -1,06 % Euronext Amsterdam
Bekaert
15,06 -0,04 -0,26 % Euronext Brussel

(ABM FN-Dow Jones) De mondiale staalproductie is in februari verder gestegen. Dit bleek maandag uit cijfers van brancheorganisatie World Steel Association.

In totaal maakten de 64 staalproducerende landen in de afgelopen maand 142,4 miljoen ton staal, een stijging van 2,1 procent op jaarbasis. Ook in januari steeg de productie met 2,1 procent.

In China, wereldwijd met afstand de grootste fabrikant van staal, steeg de productie in februari met 5,0 procent tot 74,8 miljoen ton. De Indiase productie steeg met 1,5 procent en de Japanse productie liep met 2,2 procent op.

De Verenigde Staten produceerden 3,0 procent meer staal dan een jaar eerder. In totaal ging het om 7,2 miljoen ton.

De staalproductie in Italië steeg met 0,1 procent, in Frankrijk viel de productie juist 1,3 procent lager uit.

Door: ABM Financial News.
info@abmfn.nl
Redactie: +31(0)20 26 28 999

© Copyright ABM Financial News B.V. All rights reserved.
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Ms Martina Merz Continues as Chief Executive Officer of thyssenkrupp AG

The Personnel Committee of the Supervisory Board of thyssenkrupp AG has recommended the appointment of Martina Merz as Chief Executive Officer of thyssenkrupp AG for a three-year term effective April 1, 2020. Her delegation from the Supervisory Board will thus end. Merz will resign from the Supervisory Board accordingly.

The Personnel Committee also proposes that the Supervisory Board follows Johannes Dietsch's request to resign from the Executive Board effective March 31, 2020. His successor as Chief Financial Officer will be Dr. Klaus Keysberg, who has already been a member of the Executive Board of thyssenkrupp AG since October 1, 2019. Keysberg, who holds a PhD in business administration, will remain responsible for the Materials businesses in addition to his new role as Chief Financial Officer. Plant Technology will in future be the responsibility of Martina Merz.

With these personnel changes the Executive Board of thyssenkrupp AG now consists of only three members. In addition to Martina Merz as Chief Executive Officer and Dr. Klaus Keysberg as Chief Financial Officer, Oliver Burkhard will continue in his role as Chief Human Resources Officer and Labor Director. The reduction in the size of the Executive Board adequately reflects the change in the company resulting from the sale of the Elevator business.

Source : Strategic Research Institute
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Indonesia Starts Anti-Dumping Probe over HRC Imports from China

Reuters reported that Indonesia has launched an anti-dumping probe into imports of some hot rolled coil steel from China after a complaint by a state-controlled steelmaker PT Krakatau Steel. Indonesian Trade Ministry official Bachrul Chairi said "The Indonesian Trade Security Committee has been conducting an anti-dumping investigation which began on March 9 on imports of hot rolled coil of other alloy steel products originating from China.”

He added “Indonesia's top steel producer had put forward enough evidence for the committee to initiate an investigation, including allegations that the company is suffering losses due to imports of the product from China.”

Indonesian business groups last year urged the government to hike tariffs on Chinese steel to rein in cheap imports, after Krakatau said it has to restructure and lay off 30 per cent of its workers through 2020.

Source : Strategic Research Institute
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Cleveland-Cliffs Shuts Down Construction of its HBI Project in Ohio over Coronavirus COVID-19

Cleveland-Cliffs Inc announced today, following guidelines from the office of the Governor of Ohio regarding COVID-19 virus concerns, the Company is temporarily shutting down construction activities at its hot-briquetted iron project site in Toledo in Ohio. Effective March 20th, all construction activity at the site will cease by the end of the business day. Cleveland-Cliffs will continue to monitor the COVID-19 situation and will re-start construction of the HBI plant as soon as feasible.

All other Cleveland-Cliffs iron ore mining and steelmaking facilities will remain in operation. They operate United Taconite, Northshore Mining, and partially own Hibbing Taconite.

Source : Strategic Research Institute
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Vertraagd 28 feb 2025 17:36
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