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Vulcan Steel May List on ASX & NZX

NZ Herald reported that privately owned Australasian steel products distributor Vulcan Steel has conducted a non-deal roadshow and may list on NZX and ASX. According to Australian media reports, Vulcan was planning to float on the two exchanges, which could value the company at up to AUD 1 billion. A local fund manager told the Herald "They have carefully grown in what has historically been a very fragmented market across New Zealand and Australia. It's not an IPO yet. It is a non-deal roadshow so this is the first viewing, if you like. My early read is that it is a very stable business, managed by a very savvy bunch of people, but it is a tough sector to be in. This is a hard sector to get right and it is exposed go swings in economic activity."

The Australian newspaper said Vulcan was one of the float hopefuls that has been briefing investors this week about its objectives to become a listed company. The Australian said "Feedback from fund managers about the business this week has been overwhelmingly positive, with some describing the outfit as a solid business that is currently capitalising on the soaring price of steel and has a leading market position."

Vulcan Steel is a privately-owned steel distribution and processing company operating on the eastern seaboard of Australia and New Zealand. The company specialises in steel distribution and processing of steel coil, plate and long products.

Source - Strategic Research Institute
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Low-priced Indonesian slab attracts traders' attention
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An Indonesian mill's low-priced slab offer has attracted the attention of regional traders, Kallanish notes. The blast furnace steel producer, which has been producing billet and wire rod, started running its slab operations some months ago.

The mill offered slab in the past two weeks at $745/tonne cfr Taiwan. The offer represents a price discount of at least $60/t because Russian slab would be tagged at above $800/t cfr. The offer did not have any tonnage restrictions, but trading sources expect it would be for 20,000-30,000 tonnes.

It comes with a “no-claims basis” condition, traders say. A Taiwanese trader believes the slab has not been refined, so there could be some metallurgical limitations if the product is used for thinner gauges. The company can produce both coil-making and plate-making slab. The offer is currently width specified so it may not suit platemakers, he says. The slab offered is 1,250mm by 200mm.

A Taiwanese re-roller is aiming to book slab at under $800/t cfr. The larger Asian mills are offering hot rolled coil at $940-950/t fob, but markets have slowed in Europe and there are uncertainties waiting when the summer season is over, the trader says.

The slab import market has been quiet in recent weeks because the main ASEAN slab importing countries are dealing with strict Covid-19 restrictions. Indonesian trading sources report that the last booking, for Russian slab for September shipment, took place in June at $920/t cfr. The last offer for October shipment was around $890/t cfr, an Indonesian trader says.

Another trader says he has not heard of bookings for a “long time”. Steel mills have cut production, some to only 20% of capacity, because oxygen has been diverted to hospitals. “We are waiting for things go back to normal,” the trader adds. He has not heard of any fresh November-shipment Russian slab offers so far.

“It is very quiet,” a regional trader says. He heard slab from Saudi Arabia offered to a leading Indonesian importer at $830/t cfr at the start of last week. Iranian slab is heard offered at $750-780/t cif Southeast Asia.

Anna Low Singapore
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NLMK cuts first-half costs on employee initiatives
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Employees of electric arc furnace-based NLMK Kaluga submitted in the first half of 2021 more than 1,100 initiatives to improve production efficiency. The implementation of these will allow the company to save about RUB 400 million ($5.4m), up by 81% on-year, NLMK says.

Employees from all departments participate in the development of ideas, Kallanish notes. The most active section during this period was the rolling shop of NLMK Kaluga.

“The indicator of activity in terms of continuous improvement at NLMK Kaluga has always been very high, but this year the plant employees have taken for themselves a new vector of development – improving the quality indicators of idea generation,” says NLMK vice president for operational efficiency Yekaterina Yeletina. “As a result, in the first half of 2021, the growth of initiatives with an economic effect compared to last year was 50%, and initiatives with a technical effect by more than 30%.”

NLMK earlier said Russian demand will stay supported in the third quarter on seasonal demand, boosted also by infrastructure projects (see Kallanish passim). The group's Q2 consolidated revenue grew 44% on-quarter to $4.14 billion, with sales in NLMK's home markets rising 1% to 2.8 million tonnes.

Svetoslav Abrossimov Bulgaria
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Red October decreases stainless output in July
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Production at Russia’s Krasny Oktyabr (Red October) decreased in July compared with the previous month, the company says. It amounted to 16,691 tonnes of stainless steel, down by 24.8% on-month, Kallanish notes.

In June, production was 24,900t of stainless steel (see Kallanish passim).

Red October nevertheless managed to maintain its leading position in the production of stainless steel in the first half of the year. Moreover, it is consistently the leading Russian exporter of stainless steel, with a 22.4% share in Russian stainless exports, according to national special steel association USSA.

The Volgograd-based steelmaker produced 207,990t of stainless steel in 2020, up by 2% on-year.

In July, the plant began the repair of heat-treatment furnaces in the rolled processing shop (see Kallanish passim). The equipment will return to service after a three-year downtime and two furnaces are planned to be commissioned in August.

Heat-treatment furnaces are used for the processing of high-quality rolled steel, which is marked with “QT” – heat-treatment quenching and tempering – and mostly exported.

Thanks to the commissioning of the furnaces, the throughput of the plant will increase, and the workshop will be able to fulfil a larger number of orders for this type of product, the enterprise said earlier.

In June, the company successfully produced reworking shaped and rectangular billet from hull steel, which will be used in the construction of military ships for Russia’s navy.

Svetoslav Abrossimov Bulgaria
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Hoa Phat cuts HRC by more than expected
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Vietnam’s Hoa Phat Group has lowered domestic prices for its new hot rolled coil allocations by $20/tonne, Kallanish understands. This is slightly more than the $15/t drop expected amid a strict Covid-19 lockdown in southern Vietnam.

The mill’s prices for non-skin passed SAE 1006 HRC for October shipment are at $900/t cif northern Vietnam, $903/t cif central Vietnam and $905/t cif southern Vietnam. The mill is offering SS400 grade material at $5/t lower.

Longer-established strip producer Formosa Ha Tinh reduced prices last week for domestic HRC for October shipment by $15/t. It is offering non-skin-passed SAE 1006 grade re-rolling HRC at $955/t cif Ho Chi Minh City.

“Prices are plummeting,” a Vietnamese trader says. He notes that Hoa Phat’s prices are better than Formosa’s prices. While Formosa is willing to sell its HRC at $945/t cfr, there are few takers, he says.

Chinese exporters are also returning to the Vietnamese market after being absent for a month. A Chinese mill is offering SAE 1006 HRC at $980/t cfr and another mill’s offer is at $960/t cfr. A third Chinese mill’s offer for Q195B grade HRC is at around $910/t cfr. “No one really cares to buy Chinese HRC when their suppliers have asked buyers to cover for the risk of the [rumoured HRC] export tax,” another Vietnamese trader says.

Market chatter making the rounds this week is that the Chinese export tax will not be imposed this year. The first Vietnamese trader sees the return of Chinese offers as indicative that the export tax will not be applied. "But we don’t know,” a trader with a large Chinese trading firm says. A regional trader thinks the tax is unlikely to be imposed this month because of the summer lull and overall weak steel demand.

Vietnamese buyers are currently more focused on the released domestic allocations. But if there is import interest, Russian and Indian HRC remain more competitive options than Chinese material. SAE 1006 coil from a certain Indian mill is currently offered at $910/t cfr Vietnam. Also, a supplier is currently inviting bids for Russian SAE 1006 HRC for November shipment at $880/t cfr Vietnam.

Anna Low Singapore
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India to become world’s largest exporter: JSPL’s Sharma
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India will become the world’s largest steel exporter in the coming years, surpassing China, on the back of its capacity expansion, global steel demand, and China’s export restrictions, according to Jindal Steel and Power (JSPL) managing director V.R. Sharma.

“India is seeing a massive capacity expansion, expected to get commissioned in over four to five years,” Sharma said in an exclusive interview with Kallanish. “China, on the other hand, is reducing exports to fulfil its domestic demand, making a clear space for India to become the global steel exporter. The whole world is working on a stimulus package to develop infrastructure, which ultimately creates a huge steel demand in the coming years.”

India should not see the ASEAN countries as competitors, Sharma explained. “China is not exporting anything, the Philippines is not exporting anything, neither Malaysia nor Thailand. Although there can be exceptions, but India is supplying steel to these nations,” he observed. “All these countries have their domestic demand and we don’t see them exporting in the coming future.”

JSPL is eyeing the expansion of its Odisha-based steel unit’s capacity and a new project installation in Andhra Pradesh. “We are entering into the hot rolled coil segment, with a steelmaking and rolling mill capacity expansion of 3 million tonnes/year at our Odisha-based unit. The expansion will be partly a greenfield project and partly a brownfield project. The company will be investing INR 21,000 crore [$2.82 billion] and the project is likely to get commissioned in March 2023,” Sharma commented.

“The Andhra Pradesh project will be installed in the port-based city of Krishnapatnam. The company is very much keen to install the unit near the port for the ease in import of raw materials and minerals. The project will have a 3m t/y steelmaking capacity and is likely to get commissioned through the fiscal year 2026,” he added.

In line with the government’s production-linked incentive (PLI) scheme for specialty steel, JSPL is working on producing specialty steel to serve Indian Railways. “JSPL congratulates the Government of India for their initiative on reducing imports of specialty steel by introducing the PLI scheme. JSPL has taken two keen projects out of the PLI scheme, which includes the grade 1175 heat-treated rails project used for deploying high speed and heavy load tracks. Another project being the production of 1080 grade head hardened rails used for metro rail services,” Sharma concluded.

Sayed Aameer India
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Scrap suppliers await Turkey demand rebound
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Turkish mills are continuing to take their imported scrap purchases slowly as they are yet to see a recovery in rebar demand.

A long steel mill in western Turkey bought 25,000 tonnes of HMS 1&2 80:20 on Tuesday at $449/tonne cfr from Venezuela, for second-half-of-September shipment. After deadline on Tuesday, a European supplier is then heard to have sold HMS 1&2 80:20 at $445/t cfr Aliaga.

Although Turkish mills’ appetite for scrap purchases remains weak, there are multiple suppliers from the EU offering material. Offers for EU-origin HMS 1&2 80:20 were seen on Tuesday at $450-453/t cfr, while Turkish mills think $445/t cfr is easily achievable. Some mills even believe $440/t cfr is possible given the current euro/dollar rate.

US suppliers are seen waiting for Turkey’s demand to resume before offering their material. Although US suppliers say there is not much availability of offers, mills think they will all come with an offer once Turkey increases scrap inquiries. A Canadian supplier says he will come with an offer within a few days.

A US scrap supplier tells Kallanish: “I am expecting to see a wider spread between HMS and shredded. I think HMS is overpriced while shredded is under-priced. Considering the current supply-demand balance of both, there should be at least a $70/t spread between these two grades.”

A Turkish mill, however, says: “I am not expecting to see a spread that is larger than $20/t. I think only those offers with higher shredded quantities will be sold faster. There should be a serious shortage of shredded for the gap to widen that much, but the flow of shredded is also strong.”

On the short-sea market, Kallanish observes a significant decrease in the number of offers. The latest offers from Romania are at $420/t cfr Turkey.

Egyptian mills are meanwhile inquiring about scrap and Turkish producers are watching their purchase prices closely. Following an EU-origin booking at $445/t cfr last week, an Egyptian mill is heard to have bought UK-origin HMS 1&2 80:20 at $442/t cfr Egypt.

Weak demand for rebar in both domestic and export markets is seen preventing Turkish mills from rushing to buy scrap. Although mills are expecting Asian demand to recover, the price idea of Asian buyers will play an important role in Turkey’s share in this demand, as freight is still expensive.

Turkish mills have decreased their rebar quotes in both domestic and export markets to $678-690/t ex-works and $690-700/t fob actual weight respectively. However, Kallanish observes that lower levels are also workable in those export destinations where buyers come with firm bids. In the domestic market, some panicked stockists are seen offering rebar at lower levels.

A Turkish mill, meanwhile, has sold almost 50,000t of billet in its domestic market at $640/t ex-works.

Burcak Alpman Turkey
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Iron ore inches lower despite autumn hopes
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Seaborne iron ore prices inched lower on Tuesday as Chinese steel markets rebounded from Monday’s fall. In the short term there is little to support iron ore demand, but some traders hope prices will be supported by stronger steel demand in the autumn.

The Kallanish KORE 62% index slipped $0.15/t to $162/dry metric tonne cfr Qingdao. The Kallanish KORE 65% Fe index dropped $0.27/t to $192.52/dmt cfr, and the KORE 58% Fe index fell $0.17/t to $135.34/dmt cfr.

On the Dalian Commodity Exchange January 2022 iron ore settled down CNY 3/t at CNY 844.5/t ($130.24/t), while on the Singapore Exchange September 62% Fe futures settled down $2.73/t at $158.27/t. The same contracts for 65% Fe and 58% Fe futures settled down $2.69/t at $185.77/t, and down $2.66/t at $130.18/t respectively.

6mm+ heavy scrap delivered to mills in the Yangtze River Delta gained CNY 10/t to CNY 3,751/t. Increases were led by mills in Anhui and Zhejiang. In Tangshan, billet prices were unchanged at CNY 5,040/t.

Steel production is expected to remain muted in the short term. Between government restrictions, lack of confidence in the economy and power curtailments, mills are not likely to resume previous levels of output. Traders hope however that a seasonal recovery in steel demand from September may keep steel prices firm and prevent any further decline in iron ore prices in the short term.

Tomas Gutierrez UK
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Hadeed’s early rebar price announcement puzzles market
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Saudi Iron & Steel Company (Hadeed) has announced its September-delivery prices for rebar and wire rod unexpectedly earlier than usual. 12-32mm rebar and wire rod prices remain unchanged at SAR 3,100/tonne ($826.6) and SAR 3,300/t ($880). However, the SAR 200/t ($53) project discount given for fulfilling the given monthly quota has been withdrawn.

There is confusion over why Hadeed announced September prices in the middle of August, amid a downturn in iron ore and scrap prices, while neighbouring countries’ mills are pulling down their rebar prices, local sector participants comment.

Annual rebar capacity in Saudi Arabia is estimated at 12.6 million tonnes, while demand is only about 6.3mt. With supply exceeding demand, prices today are under pressure. Hadeed, however, could be expecting a boost in construction activity from September onwards, Kallanish notes.

Emirates Steel in neighbouring United Arab Emirates, where the construction sector is under more pressure than in Saudi, is expected to announced its September-delivery rebar price this week.

Burak Odabasi Turkey
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US finds circular welded pipe dumping from Turkey
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The US has preliminarily found evidence of dumping of circular welded carbon pipe by Turkish producers, Kallanish learns from the Federal Register.

The US found a margin of 26.22% for all named 20 companies covered in the review, based off of the rate for sole mandatory respondent Borusan Mannesmann. The review covers the period 1 May, 2019, through 30 April, 2020.

However, the US found that 13 of 14 companies that stated they had no shipments to the US since 3 June. Istikbal, which claimed no shipments, was found to be “...part of the single entity, Borusan, and we find no record evidence that warrants altering this treatment.”

Dan Hilliard USA
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Allegheny Technologies sells Flowform for $55m
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Specialty metals producer Allegheny Technologies Inc has finalised its sale of Flowform Products to Consolidated Boring Inc for $55 million, Kallanish reports.

Allegheny will use the funds to “...strengthen ATI’s balance sheet and add liquidity,” the company says. Flowform has previously been a part of the forged products business within the company’s high-performance materials and components segment.

"We concluded that while ATI Flowform is a strong performer with a great team serving the defense market, it operates in a segment with competitive dynamics that do not leverage ATI's strengths and materials," says high-performance materials vice president Kim Fields. "We believe the operation in Billerica [Massachusetts] will have the opportunity to grow and thrive under Consolidated Boring's ownership and wish them great success in their next chapter."

Dan Hilliard USA
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UAE’s Dana Steel receives certifications, eyes CRC mill
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United Arab Emirates coil coater Dana Steel Industry has received ISO quality certificates within two months of operating its hot-dip galvanized coil plant. The firm is now eyeing backward integration through the installation of a cold rolling mill in the next couple of years.

The certificates comprise ISO 9001:2015, evaluating quality management; ISO 14001:2015, evaluating the environmental scope of work; and ISO 45001:2018, certifying occupational health and safety management.

Dana Steel formally opened its hot-dip galvanizing (CGL) and colour-coating (CCL) lines at Dubai Industrial City in June.

Dana Steel vice president marketing Iqbal Azim tells Kallanish: “These quality certifications are key enablers for production, testing, and quality control processes and other standard operating procedures in the industry. Our earnest desire to improve, innovate and become inordinate on quality and all deliverables and KPIs are embedded in our routine chorus and working standardisation.”

Dana Steel has four coil service centres in UAE, as well as a welded pipe and hollow sections mill in India.

Burak Odabasi Turkey
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TSA to open new Pennsylvania toll processing centre
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Houston-based toll coil processor TSA Processing plans to open a new location in Hyde Park, Pennsylvania, by 1 October, Kallanish learns from local media reports.

According to the Valley News Dispatch, TSA will open the plant in a former foundry building in Hyde Park. The 50,000 square-foot space will be leased for three years. Financial terms were not disclosed.

The opening of the Hyde Park centre marks TSA’s first venture in the northeastern US.

Currently, TSA operates in Houston and Dallas, Texas; Atlanta, Georgia; Richmond, Indiana; and Chicago, Illinois.

Dan Hilliard USA
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Turkish HDG, CRC prices remain under pressure
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Turkey’s domestic cold rolled and hot-dip galvanised coil prices remained largely unchanged in the past week, but lower-priced Russian CRC imports encouraged Asian suppliers to cut their offer indications.

Turkish mills continue to offer and sell CRC at $1,240-1,270/tonne ex-works, up around $10 versus the start of August, with some October and spot volumes still available. But domestic trade is trickling slowly after CIS-origin import transactions at $1,080-1,090/t cfr Turkey forced Indian suppliers to reduce their offers by around $40/t to $1,120/t cfr, Kallanish learns from market participants.

Turkish CRC export offers remain at $1,230-1,270/t fob, with sales slow due to ongoing holidays in Europe and China's influence. However, more enquiries are reported from the regions relying on Chinese and Asian supply, in both western and eastern hemispheres, including the Americas, Middle East and North Africa.

Ongoing uncertainty over China's external steel trade policies and its influence on global demand persists; however, small parcel sales to North America were concluded at $1,300-1,320/t fob Turkey equivalent, in the past two weeks, sources say.

Meanwhile, HDG sales remain in the domain of exports to North America, at prices and volumes unchanged on last week. Alternative trade is almost nil, as European buyers are weary of the possibility of retroactive anti-dumping duties being applied after the investigation is concluded. The domestic market is well supplied, with uncertainty and ample availability preventing Turkish buyers from stocking up much further ahead.

Sales to North America were being made at around $1,350-1,370/t fob equivalent for 0.5mm Z100 grade material, while lower, $1,320-1,350/t fob offers to Europe remained unsold. Similarly-priced domestic offers were also largely unrequired, while mixed sentiment, driven by China, is maintaining pressure on prices.

Katya Ourakova UK
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NRP orders wire rod plant from Danieli
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Russian scrap-based steelmaker Novorossiysk Rolling Plant (NRP) is adding more downstream capacity at its southern Rostov region Shakhty-based former REMZ steelworks.

The firm ordered a 600,000 tonne/year nameplate capacity wire rod plant to be supplied by Danieli for production of wire rod coils with 5.5-16mm diameter and hot-quenched rebar in 6-12mm diameter, the plant maker says. The plant will be built in the greenfield area on the site of the REMZ, which is being rebuilt and rebranded as Donelectrostal, following Novorosmetal's acquisition of insolvent REMZ in February 2020,

The new mill will produce low-to-medium carbon long steel products, with the layout enabling the subsequent addition of billet welding and spooler line. In addition to the wide range of anciliary equipment, the Danieli Centro Combustion 120t/hour walking beam furnace will deliver billet to the mill, which is currently penned for commissioning in 2023.

Donelektrostal complex is concieved as a full production cycle plant with over 1 million t/y finished steel capacity, with total investment of around RUB 20 billion ($272m), marked for launch in 2024 (see Kallanish 8 July).

Katya Ourakova UK
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Industrial, mining production rises during July in US
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US industrial production and mining output rose from June to July, Kallanish learns from data collected by the US Federal Reserve.

According to the Federal Reserve's industrial report, the monthly total US industrial production index rose by 0.9% to 101.1 points in July with 2017's production levels set at 100 points as a base comparison. In an on-year comparison, total US industrial production remains up 6.6% from July 2020. Manufacturing production rose by 1.4% in June to 99.5 points, while mining output rose by 1.2% to 108.4 points.

Capacity utilisation rose by 0.7% from June to 76.1% in July. Despite the monthly gains, capacity utilisation remains up just 0.1% above last year's levels. In a breakdown by stage-of-process groups, capacity utilisation rose for primary and semi-finished products (up .1%), crude products (up 0.7%), and finished product (up 1.4%) during July. Capacity utilisation remains up 0.4% on-year for primary and semi-finished products, but below last year's levels for both crude (down 1%) and finished (down 0.2%) products.

Zach Johnson USA
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Schnitzer restarts Cascade production, acquires scrap recycler
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Portland, Oregon-based longs producer and metals recycler Schnitzer Steel has resumed production at its Cascade rolling mill and entered into an agreement to acquire Mississippi-based scrap recycler Columbus Recycling, Kallanish understands.

According to an announcement by Schnitzer, the company has restarted production at its Cascade rolling mill in McMinnville, Oregon, following a fire at the melt shop on 22 May. Schnitzer's restart of Cascade is several weeks ahead of schedule leading to the expectation of limited sales before the end of the company's fiscal year at the end of August.

Along with Cascade's restart, Schnitzer has announced the acquisition of Mississippi-based Columbus Recycling which is expected to be completed in the company's first quarter of 2020. Columbus Recycling has several operations throughout the Southeast with locations in Mississippi, Tennessee, and Kentucky.

"The acquisition of Columbus Recycling will expand our platform and offerings in a robust regional market with immediate scale and meaningful synergies. The transaction is consistent with our growth strategy to expand metals recycling operations to meet anticipated increases in steel and nonferrous metals demand driven in part by the global transition to low carbon technologies,” explains Schnitzer ceo Tamara Lundgren.

Schnitzer estimates the acquisition of Columbus Recycling will increase the company's total ferrous sales volume by approximately 7% per year as a result of Columbus' yearly sales volume of 300,000 short tons.

Zach Johnson USA
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US rebar pricing advances despite scrap's downturn
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US rebar prices increased this week following a period of stagnant pricing since late July, Kallanish learns.

According to a Northeast distributor, US rebar pricing advanced this week by $5/short ton for both the price floor and ceiling as strong domestic demand outpaced a $20/gross ton decline in obsolete scrap pricing during the month.

"[Rebar] orders are strong while the market supply remains tight. In fact, declining prices for obsolete-grade scrap have failed to impact rebar pricing...which I believe shows the market's current strength," the distributor explains.

As a result, Kallanish updates its price assessment on Tuesday for #4 products in 20-foot sticks to $985-995/st. All prices are ex-works, domestic mill.

Zach Johnson USA
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Steel prices to retreat but remain elevated: Moody's
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Steel prices should notably retreat from their current record levels over the next two years, but remain above their historical averages in the medium term, says Moody’s. They will be underpinned by more solid demand and supply fundamentals and rising carbon costs on tightening emissions reduction policies in some regions, especially in Europe.

“Demand improvements should be driven by a continued recovery in steel-using end markets, such as (renewable energy) infrastructure and automotive, as Moody's forecasts global light vehicle sales to reach pre-pandemic levels only by the middle of the decade,” the credit rating agency says in a note seen by Kallanish. “In addition, an expected re-stocking of still-low inventory levels globally should further fuel steel demand over the next few quarters.”

“The market environment benefits from structural improvements, as the recent prolongation and tightening of trade defence measures in Europe and the removal of value-added tax rebates on Chinese steel exports, should be supportive of more balanced international trade flows and limit the risk of excessively rising imports pressuring steel prices, as, for instance, seen in Europe in 2018,” it adds.

This comes as Moody’s assigned a Baa3 long term issuer rating to ArcelorMittal. It concurrently withdrew the Ba1 corporate family rating (CFR) and Ba1-PD probability of default rating (PDR), as per the rating agency's practice for corporates transitioning to investment grade.

It also upgraded the senior unsecured rating on the group's medium-term notes (MTN) programme to (P)Baa3 from (P)Ba1, the senior unsecured ratings to Baa3 from Ba1, the short-term rating on its Commercial Paper to P-3 from NP, and its other short-term rating to (P)P-3 from (P)NP. The outlook on all ratings has been changed to stable from positive.

The upgrade to Baa3 with a stable outlook reflects ArcelorMittal's significantly strengthened operating performance and recovery in credit metrics over recent quarters and, in particular, in Q2, Moody’s concludes.

Adam Smith Germany
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Baowu Kungang commissions direct rolling mill
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Baowu Group's subsidiary Kunming Steel launched a direct rolling technology plant this week. This also marks the production of Baowu's first direct-rolled wire rod, Kallanish notes.

This project will send continuous cast billets directly to the rolling line, reducing the use of heating furnaces, and is an advanced technology encouraged by Chinese government. According to Baowu's description, the project can reduce energy consumption by 10.62 kilograms of standard coal equivalent per tonne, and can reduce carbon dioxide emissions by 71,200 tonnes per year, with a carbon reduction rate of over 46%.

Baowu plans to complete this transformation on 12 other production lines at its subsidiaries, of which Kunggang's wire rod production line and Chongqing Steel's bar production line will be the first two sample projects. Kunggang's project was signed in May and construction began in June 2021.

By Kallanish Team
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