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Cognor Reports Record Profits in Apr-Jun’22 Quarter

Strategic Research Institute
Published on :
25 Aug, 2022, 6:27 am

Poraj based Polish steel maker Cognor announced that the revenues in April-June 2022 quarter increased by as 47% on the basis of a strong increase in the prices of scrap, words and final products even though production cost of crude steel decreased by 3% in April-June 2022 quarter while the total sale of scrap steel, semi-finished products and final products recorded decrease of 13%. Along with the increase in revenues, there was a rapid improvement in the profitability of the Group as EBITDA increased to PLN 234.9 million and a record net profit of PLN 189.8 million, mainly due to the growing price environment compared to the previous quarter and widening of the processing spread by PLN 1,413 per tonne and for final products by as much as PLN 1,531 per tonne as the prices of billets and finished products rose faster compared to the increase in the prices of steel scrap. This has been offset to some extent by the deterioration in production costs resulting from increases in energy prices and other consumption factors.

Cognor said “The charge cost relationship of Cognor using electric arc technology, compared to BOF, was negative and deteriorated further, as shown in EAF and BOF charge comparison model. The reason for this was the phenomenon of a greater decline in the prices of steel scrap compared to the rate of changes in the prices of iron ore and coking coal used by BOF producers. With very wide spreads, our closer competitive position does not have a greater impact on the volume of billet sales. But if their currently unusually high level would normalize, then in the future we may feel a pressure on the volume of semi-finished product sales, because it is in this market that both methods of steel production compete with each other.”

Cognor added “Currently, spreads have returned to more or less to pre-war levels, but the energy crisis, which has occurred as a result of Russian retaliation, in particular with the shortage of natural gas in many European Union countries, raises a question mark as to whether the energy industry, including the steel industry, will be the day had access to sufficient hydrocarbons for the coming winter season. We are counting on the cessation of hostilities and we hope that the suffering of the people caused by the barbarian attack will cease and there will be peace in Ukraine.”

Established as the State Enterprise for Trading in Metallurgical Products in Gdansk PPOWH in 1941, Cognor was founded in 1991 through privatization of PPOWH and takeover of Centrostal for dealing with the trade of metallurgical products. The group developed over these years with mergers & acquisitions of Stalexport, Florian Podkarpacie, Centrostal, Zlomrex Steel Services & Profil SA. Since 1997, it has been an entity listed on the Warsaw Stock Exchange, and since 2006 it has become part of an industrial group dealing with the production of steel products and trading in metal scrap.
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Indian Steel Forging Units Facing Multiple Challenges

Strategic Research Institute
Published on :
25 Aug, 2022, 6:29 am

Association of Indian Forging Industries has expressed concerns to the government over high steel, aluminium and nickel prices and decrease in automotive demand and warned that India's small and medium scale industrial steel forging units are likely to see 50% decline in output in 2022-23. AIFI said “The forging industry faces new challenges on a regular basis and volatility in steel prices has damaged it. The drop is indicative of the tough times being endured by forging companies in the first half of current fiscal due to increased costs of steel and nickel.”

AIFI Vice President Mr Yash Jinendra Munot said, “The industry is still going through challenging circumstances, and the forging sector faces new challenges on a regular basis. The volatility in steel prices has damaged the Indian forging industry. The forging industry’s core requirement is steel and the present price increase has disrupted the supply chain. Furthermore, high raw material prices remain a challenge, and high fuel prices continue to influence customers and buying decisions. The automobile industry accounts for around 70-80% of our industry. Rising input prices and a decrease in vehicle demand could cause capacity utilization at forging plants to decline from 80-85% pre-pandemic levels to approximately 50-55%.”

AIFI President Mr Vikas Bajaj added “The electric vehicle sector will have a significant impact on the forging industry since the demand for moveable parts used in vehicles will decrease, resulting in considerable unutilized forging capacity. Internal combustion engines in automobiles contain around 2,000 moving parts, whereas electric vehicles have only 20. We anticipate that EVs will shut 60% of the forging and casting industries in the next few years, resulting in employment and unit closures. The forging industry will need to look into alternative options such as aluminium forging and expand into non-automotive areas such as infrastructure, defense, healthcare, and railways, where the present government is also substantially investing.”

Indian forging industry is the second largest in the world, next only to China. The forging industry in India comprises 85% of the MSME sector. Over three lakh people are employed directly in the industry, with an equal number employed indirectly. The forging sector has been identified by EEPC as one of the key sectors for export growth. The last two fiscal years have seen a double-digit fall in India’s overall automotive sales due to the COVID-19 outbreak and various factors, including a shortage of semiconductor chips, rising input costs, rising commodity prices, and rising fuel costs. Thus, the overall auto components and forging industry have not seen an improvement in their order books.
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Baosteel’s Casing Pipe Used in Shunbei Deep Oil & Gas Field

Strategic Research Institute
Published on :
25 Aug, 2022, 6:31 am

Chinese oil & gas giant Sinopec has announced a significant breakthrough in the Deep Engineering project of oil and gas exploration. Shunbei 803X well, the key well of Shendi No 1 in the Shunbei oil and gas field in China, tested high-yield industrial oil and gas flow, becoming its 15th thousand tonne well of the ultra-deep layer.

Baosteel's sulfur-resistant, high-strength, high-toughness casing pipe, as well as sulfur-resistant oil pipe, has been successfully run down to a depth of 9,300 meters, assisting the development of the world's deepest oil and gas field.
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Vulcan Steel Reports 119% Surge in Profit in FY 2022

Strategic Research Institute
Published on :
25 Aug, 2022, 6:35 am

Australasian steel and metal products distributor and value-added processor Vulcan Steel has reported 119% YoY surge in profit for the year ended 30 June 2022. Vulcan's Managing Director and CEO Mt Rhys Jones said “Notwithstanding the disruptions caused by COVID19 and major floods across parts of Queensland and New South Wales during the year, Vulcan's FY22 Adjusted NPAT of approximately NZD 142 million exceeded our prospectus forecast by 89%. Stock management, staff development and service level are our priorities to ensure customers remain well-served. The fact that we have been able to broadly maintain our DIFOT3 at approximately 96% in the most trying of times is a credit to everyone and the outstanding teamwork at Vulcan. The strong FY22 performance has enabled the company to invest in our staff, working capital and processing capacity and support the debt funding for our acquisition of Ullrich to position the company for long term growth.”

FY 2022

NPAT of NZD 124 million, up 91% YoY

EBITDA of NZD 224 million, up 68% YoY

Adjusted NPAT of NZD 142 million, up 119% YoY

Adjusted EBITDA of NZD 243 million, up 82% YoY

For Australia and New Zealand, Vulcan expects a more challenging industry environment in FY23 due to the impact of higher interest rates. New Zealand business confidence remains weak while in Australia economic activity appears more resilient for now. Some normalization in industry margins will likely occur in FY23. Vulcan's FY23 EBITDA guidance of NZD 215-235 million reflects these business cycles and industry headwinds.
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Mines Ministry Recommends Beneficiation of Low Grade Iron Ore

Strategic Research Institute
Published on :
25 Aug, 2022, 6:37 am

The Business Line reported that a committee set up by the India’s Ministry of Mines has recommended steps for beneficiation and up gradation of low-grade iron ore into higher grade ones. Recommendations state that at least 80% of the low-grade ore with iron content of less than 58% produced in a year be upgraded to higher grade ore of 62% iron content, failing which steep fines and mine lease termination should be levied.

The committee has recommended penalty for failure to adhere to the mandate too. Lessees are to be assessed on a quarterly basis and if they fall short of 80% beneficiation clause, they shall pay the State Government an amount of royalty and premium as applicable to iron ore lumps or fines of 62-65% grade with penalty being the shortfall amount.

The committee’s finding show that 121 million tonnes of iron ore of different grade are lying unused at different mine pitheads, about 55% of which are fines with less than 58% Fe content

The report highlights that nearly 17% of total iron ore produced in India are of low grade while steel mills are known to use premium iron-ore grade of 62% and above ores of lower grade are preferred for exports, which have been badly hit after imposition of export tax

Comments have been sought from industry bodies like the Federation of Indian Mineral Industries, the Indian Steel Association, FICCI, CII, Pellet Manufacturers Association of India and Assocham.
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Danieli Corus to Repair Hot Blast Stoves of BF 3 at Port Talbot

Strategic Research Institute
Published on :
25 Aug, 2022, 6:41 am

Tata Steel UK has selected Danieli Corus for the repair of hot blast stoves 11 and 13 of Blast Furnace No 5 at their Port Talbot Works in UK. The Blast Furnace hot blast system is essential for efficient ironmaking and underperforming stoves heating the blast air mean higher gas consumption or result in the need for increased quantities of coke in the furnace.

The hot blast stoves at both Blast Furnaces at Tata Steel’s Port Talbot works have achieved very long campaign lives with the support of multiple life-extension repairs, the most recent of which was the repair of stove 10 of Blast Furnace No. 4.
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Nava Terminates Ferrochrome Conversion Agreement with TATA Steel

Strategic Research Institute
Published on :
25 Aug, 2022, 6:45 am

India’s leading Hyderabad Telangana based ferroalloy producer Nava, formerly Nava Bharat Ferro Alloys, announced that the company has encountered technical issues in the production of High Carbon Ferro Chrome for Tata Steel Mining Limited, impacting the plant’s productivity parameters and has decided to discontinue the Conversion of High Carbon Ferro Chrome for Tata Steel Mining Limited at the end of October 2022. Nava has a Conversion Agreement with Tata Steel Mining Limited since 2017-18 for production of High Carbon Ferro Chrome for the period up to March 2025.

The Company will undertake a scheduled maintenance of the Odisha smelters in November 2022 and switch over to production of Manganese alloys in Odisha Works. The Company has geared up for this additional production in Odisha, besides that in Telangana, aggregating to a rated capacity of 180,000 tonne of Manganese Alloys per annum. The switchover would provide the company better economies of scale and improved market share in the Manganese alloys segment.

Established in 1972 as an Indian ferroalloys manufacturer, Nava Limited is now a multinational company, operating in India, South East Asia and Africa. It produces silicomanganese and ferromanganese as well ferrochrome at ferroalloy plants in Paloncha in Telangana and Kharagprasad in Odisha.

Telangana

Smelters: 3 x 16.5 MVA & 1 x 27.6 MVA

Manganese Alloys

125,000 tonnes per annum

Odisha

Smelters: 2 x 2Z5 MVA

Chromium Alloys

75,000 tonnes per annum
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Usiminas Undertaking Maintenance at BF 3 at Ipatinga Plant

Strategic Research Institute
Published on :
25 Aug, 2022, 6:45 am

Local media has reported that Brazilian steel maker Usiminas will carry scheduled stop at 2.3 million tonnes blast furnace 3 at the steel plant in Ipatinga for equipment maintenance. Usiminas said that an atypical condition was identified in blast furnace 3, which can generate noticeable noise in some locations around the Ipatinga plant especially at night and a stop was planned for intervention in the equipment.

Usiminas President Mr Alberto Ono had earlier stated in an interview in June that the 110 days long renovation of blast furnace 3 should take place in the second quarter of 2023 by Usiminas Mecanica.
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Deutsche Edelstahlwerke Apprises Mr Spahn of Energy Crisis

Strategic Research Institute
Published on :
25 Aug, 2022, 6:46 am

Christian Democratic Union of Germany Deputy Chair & member of the German government’s Deutscher Bundestag’s economic affairs committee Mr Jens Spahn visited Swiss Steel's Deutsche Edelstahlwerke in Witten to learn more about the current situation in the steel industry. Deutsche Edelstahlwerke CEO Mr Frank Koch explained that the EAF technology used by Swiss Steel Group to produce environmentally friendly steel as compared to conventional blast furnace and asked Mr Spahn to advocate for a secure energy supply at affordable prices and to guarantee the equal treatment of environmentally friendly electrical steel production in the distribution of subsidies.

Mr Spahn said “We need relief this fall, also for industry, to be able to absorb the challenges associated with the supply of energy once winter sets in. The German government must therefore make decisions as soon as possible. We cannot afford to continue to wait.”

From January 2021 to January 2022, the prices on the natural gas spot market rose by 300%. The situation is no better for electricity. Electrical steel producers are doing everything in their power to lower energy consumption, specifically their use of natural gas. Research and development projects are currently underway in the DEW plants, but require major investments.

The energy situation in Germany is becoming more and more critical, and prices for gas and electricity continue to rise. New relief packages are constantly being discussed for consumers.
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Salzgitter Selects Primetals for First SALCOS Plant

Strategic Research Institute
Published on :
25 Aug, 2022, 6:46 am

Following the decision by the German steel maker Salzgitter AG Supervisory Board in July to approve capital funding in the amount of EUR 723 million for SALCOS, SAlzgitter Low CO2Steelmaking, and the first order has now been placed for central plant components that will enable virtually CO2 free steel production in Salzgitter. Salzgitter Flachstahl and Primetals Technologies have signed a contract for the engineering, supply and erection of the first electric arc furnace and the development of technical infrastructure in Salzgitter. Production is slated to start at the end of 2025.

The EAF is an AC module with three electrodes which has an annual capacity of around 1.9 million tonnes of crude steel. It will be capable of smelting sponge iron and steel scrap along with various additives in less than 50 minutes. The crude steel will then be refined using the existing plant, cast in slabs, rolled and processed. Plant assembly will commence at the end of 2024, once the technical infrastructure is in place.

The scope of the order also extends to the necessary ancillary modules such as, for example, dust extraction units including heat recovery, water management, electrical compensation to stabilize the network, and material handling equipment for alloying agents and additives. Extensive digitization, robotics and other technology packages will be employed to ensure process stability at the new EAF.

The EAF and the ancillary modules will be fitted with sound insulation in order to securely comply with the permissible noise limits at the workplace and in the neighboring communities. The waste heat generated by the process will largely be converted into steam with the aid of heat recovery technology. This steam will then be fed into the steelworks network and reused in other parts of the works.

The goal of SALCOS is, in three stages between now and 2033, to convert the integrated steelworks entirely to low-CO2 crude steel production. As part of the transformation, two direct reduction plants and three electric arc furnaces will be built to successively replace the blast furnaces and converters. In this way the previous process based on coking coal will give way to a new water-based route to steelmaking. Anticipated savings are in the order of 95 % of annual CO2 emissions of around 8 million tonnes. That means that around 1 % of Germany’s emissions of CO2 can be avoided.
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EUROFER Cuts Outlook for 2022 as Uncertainty Drags Growth

Strategic Research Institute
Published on :
25 Aug, 2022, 6:46 am

Brussels based the European Steel Association EUROFER has warned that the performance of the first quarter of 2022 confirms a marked slowdown in the positive trend observed in 2021, reinforcing bleaker prospects for the rest of the year with apparent steel consumption expected to experience its third recession in just four years, while the evolution of steel demand remains subject to high uncertainty fuelled by the ongoing energy crisis, inflation, supply chain disruptions and Russia’s war in Ukraine. Import penetration has remained considerably high. EUROFER Director General Mr Axel Eggert said “A gloomier outlook for the steel market for the rest of 2022 is consolidating and will most likely have spillover effects also on 2023. We have been facing skyrocketing energy prices and bottlenecks in supply chains for almost a year now, and the dire consequences of Russia’s invasion of Ukraine for half a year. Yet, there is no sign that uncertainty will ease any time soon, while steel imports in the EU are still significant: this is detrimental for a healthy EU steel industry.”

Despite substantial growth of15% in apparent steel consumption in 2021 and 6.5% in the first quarter of 2022 for a total of 37.1 million tonnes, this volume is still below the pre-pandemic peak of 2018 and a declining trend is expected for the rest of 2022, resulting in a moderate recession and in a further halving of steel-using sectors’ output growth of 1.1%.

Domestic deliveries had a nearly flat growth in the first quarter of 2022 of 0.2%, after 1.2% in the fourth quarter of 2021, mirroring the sluggish demand seen since the second half of 2021. By contrast, in 2021 deliveries sharply rebounded 11.3%, after 2020’s slump of 9.6%.

Imports into the EU continued their significant increase of 28.8% also over the first quarter of 2022, though at a slower pace compared to the fourth and third quarter of 2021 at 43.4% and 47.7% respectively. Despite a limited rise of 0.4% in the second quarter, import penetration over the last quarters has remained considerably high.

A more nuanced picture emerges for steel-using sectors in the first quarter of 2022. The overall output figure is markedly positive 4.9% and even better than the previous quarter’s performance 2.6%, scoring the fifth consecutive year-on-year growth. But a closer look at individual sectors shows an uneven reality: the favorable conditions experienced by construction, mechanical engineering and transport were able to offset the negative results of automotive and domestic appliances, which were hit first by the current global challenges.

EUROFER said “However, the unfavourable conditions stemming from Russia’s ongoing war in Ukraine, with worsening supply chain issues, energy crisis and high production costs, are expected to negatively impact in the next quarters also on those sectors which were spared so far. This is why the steel-using sectors’ output for 2022 has been revised downwards by half compared to EUROFER’s previous forecasts 1.1% vs 2%.”
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Staalfabrikant Aperam stopt productie in Genk om energiekosten
ANP Producties - Gisteren om 15:52
© ANP

GENK (ANP) - Staalbedrijf Aperam heeft de productie in de grootste fabriek van het bedrijf stilgelegd als gevolg van de hoge energieprijzen. Honderden werknemers van de fabriek in Genk zijn hierdoor tijdelijk werkloos. Dat meldt de Belgische zakenkrant De Tijd. Er werken zo'n 1200 mensen op de locatie in Genk.

De productie ligt volgens de krant al sinds begin deze maand stil. In de fabriek in Châtelet bij Charleroi gaat de productie op een lager tempo door. In deze fabriek zijn ongeveer 750 mensen werkzaam. Daarnaast heeft Aperam diverse fabrieken in Frankrijk.

Bernard Hallemans, Europees topman bij het staalconcern, spreekt in de Vlaamse krant van "een extreme situatie die al een tijdje aansleept en alleen maar erger wordt". Hij vreest dan ook voor de toekomst. "En helaas zijn er geen indicaties op verbetering."

Door de extreem hoge energieprijzen zien veel bedrijven zich genoodzaakt om de productie stil te leggen. Zo werd vorige week bekend dat de van oorsprong Belgische metalenproducent Nyrstar zijn zinksmelterij in het Noord-Brabantse Budel moest sluiten en besloot de Noorse kunstmestproducent Yara zijn productie terug te schroeven.
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Chilean Grupo CAP Reports 50% Decline in Profit in H1 of 2022

Strategic Research Institute
Published on :
26 Aug, 2022, 6:05 am

Chilean iron ore and steel producer Grupo CAP achieved a net profit of USD 216 million in January-June 2022 as against USD 531 million in the same period of 2021. According to the company, the reduced profit reflects lower margins for all its business areas, due not only to lower prices in line with declining international prices of commodities, but also production costs that were impacted by inflationary pressures. Net sales declined by 26% YoY to USD 1.55 billion, while the gross profit declined by 57% to USD 525 million.

By business segment, the gross profit of Compañía Minera del Pacífico, at the end of the first half of 2022, decreased 59% to USD 450 million, while EBITDA decreased 54%, reaching USD 536 million. Meanwhile, the net income of the mining segment reached USD 296 million in the first half of the year, a figure lower than the USD 695.0 million obtained as of June 2021. During the first half of 2022, CMP continued to operate all of its production operations without major interruptions, reaching production and shipment levels of 7.4 and 6.9 million tonnes, respectively, in line with the 7.6 million tonnes of production for the same period in 2021, and slightly lower than the 7 .2 million tonnes shipped during the first half of last year

At Siderúrgica Huachipato, during the first semester it achieved a gross margin of USD 16 million versus a figure of US 23 million in the first half of the previous year, an EBITDA of USD 11 million versus a figure of USD 19 million in the same period of the previous year and had a net loss of USD 9 million versus a loss of USD 1.5 million in the first half of 2021.

In CSH, during the first half of 2022, total revenues reached USD 363 million, 10% more than in the same period of 2021. These higher revenues are explained by a 41% increase in the average price of steel sales at USD 1,104 per tonne in the first half of 2022 versus USD 781 per tonne in the same period of 2021, despite the 19% reduction in volumes shipped as consequence of the stoppage of Blast Furnace No 2 due to unwanted cooling during start-up after its maintenance in the first quarter of the current year

In the Steel Processing segment, a business made up of Cintac in Chile, Tupemesa, Calaminon, Sehover and Signovial in Peru, TASA in Argentina, and also Promet in Chile and Peru, accumulated revenues and EBITDA as of June this year reached USD 312 million and USD 25.4 million, respectively. These figures represent reductions of 2.2% in sales and 65% in EBITDA compared to the first half of 2021, which is mainly explained by tighter margins as a result of production costs that in absolute terms increased 16%, which was not compensated by the 19% increase in the average price of steel products sold by this business segment.
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Bisalloy Report 72% Surge in Profit in FY22

Strategic Research Institute
Published on :
26 Aug, 2022, 6:07 am

Australian special steel plate maker Bisalloy Steel has reported Operating EBITDA of AUD 24.8 million for FY22 as compared to AUD 16.7 million in FY21.

Revenue – AUD 117.8 million, up 12.4% YoY

Net Profit After Tax – AUD 15.4 million, up 72.0% YoY

Bisalloy said “The last twelve months have been characterized by global and domestic steel prices at or near record levels with continued strong Australian demand for quench and tempered steel plate. Combined with proactive pricing and procurement decisions, this has resulted in much higher product margins for Bisalloy across FY22 relative to FY21. As expected, product margins declined in H2 relative to H1 as higher greenfeed costs flowed through.”

Bisalloy added “Despite impacts from Covid-19 lock-downs and tightening market conditions, we continue to see solid performance from the CJV, in particular a 23.1% increase in Bisplate sales tonnes compared to FY2021. Unfortunately, these gains in sales have been offset by higher administration and operating costs along with lower gross margins, resulting in a relatively flat contribution to earnings. The Group’s overseas distribution operations in Indonesia and Thailand continue to be profitable.”

Bisalloy also said “Armour business continues to be of importance both domestically and internationally. We continue to develop and support an alternate supply of specialised greenfeed from targeted partner mills overseas.”

FY23 Outlook “Throughout the recent macroeconomic and geopolitical volatility, Bisalloy has continued to demonstrate strength and resilience in its business performance. With this volatility ongoing, we are anticipating normalisation of product margins as a result of expected reductions in international steel prices, along with the impact of higher energy and transportation costs. We also cannot discount the impact of future disruptions caused by COVID-19 and ongoing supply chain disruptions, particularly sea freight. Therefore, Bisalloy is projecting a reduction in profits in FY23 compared to FY22.”

Bisalloy is Australia's only manufacturer of high-strength structural, wear-resistant and armour steel plates using quenched and tempered steel. Bisalloy products are used in the mining, construction, general fabrication and defence sectors. Bisalloy has an extensive distribution network across Australasia, Indonesia, Thailand, the People's Republic of China and the United Arab Emirates.
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Australia Opens Sunset Review on Galvanized Steel Imports

Strategic Research Institute
Published on :
26 Aug, 2022, 6:09 am

The Australian Anti-Dumping Commission has initiated the second sunset review investigation of anti-dumping measures on galvanized steel from China, Taiwan, and South Korea, as well as the second review investigation of countervailing duty measures on the same product from China, following an application submitted by Australian company BlueScope Steel on 29 July 2022. The Australian Anti-Dumping Commission was expected to submit its recommendations to the Minister for Industry, Energy and Emissions Reduction on or before 24 January 2023.

In its application, BlueScope claims that the expiration of the anti-dumping measures would likely lead to the continuation or recurrence of dumping and/or countervailing of galvanized steel from China, Taiwan and Korea and the continuation or recurrence of the material injury that the anti-dumping measures are intended to prevent.

The goods subject to the anti-dumping measures and this inquiry are:

Flat rolled products of iron and non-alloy steel of a width less than 600mm and equal to or greater than 600mm, plated or coated with zinc

Flat rolled products of alloyed steel of a width less than 600mm and equal to or greater than 600mm, plated or coated with zinc exported from China by Angang Steel or Benxi Iron & Steel or Taiwan by Yieh Phui Enterprise

The period of review is from 1 July 2021 to 30 June 2022.

The products involved are under HS codes 7210.49.00.55, 7210.49.00.56, 7210.49.00.57, 7210.49.00.58, 7212.30.00.61, 7225.92.00.38 and 7226.99.00.71.
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Metinvest Aid Reaches UAH 1.9 Billion in 6 Months of War

Strategic Research Institute
Published on :
26 Aug, 2022, 6:13 am

Ukrainian steel maker Metinvest has spent over UAH 1.9 billion in aid for Ukraine during six months of war. Metinvest CEO Mr Yuriy Ryzhenkov said “For half of Ukraine’s history as an independent state, Metinvest has been there for Ukraine and has done everything in its power to make it thrive. The Group has invested money, resources and, most importantly, unfailing love. Now, as the country is going through its toughest times, we are not standing by idly; we are helping to bring victory closer. I thank our employees, the heroes of Steel Front, for this. I am convinced that together, we will win this war and will make Ukraine even stronger and more successful in the future.”

One of Metinvest’s largest projects has been dedicated to supplying gear for the Armed Forces of Ukraine, territorial defence units, National Guard, National Police, Defence Intelligence Corps and other forces. Metinvest also supplies protective gear for its mobilised employees, employees of public utilities, rescue workers, combat medics and national media representatives reporting from combat zones. The defence forces have now received more than 21,000 helmets from Metinvest. The Group has also donated around 110,000 bulletproof vests, some of which have been purchased abroad. Others have been made using certified specialty steel produced in-house. Metinvest-SMC, the Group’s sales company, supplies specialty steel to make protective equipment for front-line vehicles. Together with its partners, Metinvest has launched the production of other steel products to meet the military’s needs. For example, the troops have already received the first four special metal bunker-type shelters for the reinforcement of trenches. The structures have been produced at Metinvest’s JV in Zaporizhzhya.

The company has also handed over the first 6 tonnes of steel products for Ukrtransgas. This steel has already been used to manufacture and supply 80 outdoor stoves, 170 remote mine clearance devices and 120 mini-stoves made of sheet metal plates. In total, employees of Ukrtransgas plan to produce 5,000 items using a continuous supply of Metinvest steel.

Aside from this, the Group provides a variety of tactical equipment to the troops. In particular, the Armed Forces of Ukraine have already received over 500 drones, 1,600 thermal imaging devices, 27,000 tourniquets and 500 first-aid kits from Metinvest.

The Group has supplied the defence forces with up to 500,000 liters of petrol and handed over more than 140 vehicles and pieces of heavy-duty machinery from its own fleet. Metinvest has also purchased 100 pickup trucks, jeeps and minivans for the Armed Forces of Ukraine and 20 ambulances for medics of the Defence Intelligence Corps.

For the construction of roadblocks and the reinforcement of social infrastructure, the Group has provided nearly 3,000 tonnes of sand and gravel, and 2,400 concrete blocks and slabs. It has also supplied steel for portable mini-bastions and other defensive structures. Nearly 76,000 anti-tank hedgehogs have been produced from Metinvest steel.

The facilities of Metinvest’s Pokrovske Coal subsidiary operate in a relatively stable manner. Pokrovske Colliery commissioned a new mining face in June, while Sviato-Varvarynska Beneficiation Factory is shipping premium coal concentrate. Metinvest’s businesses in Kryvyi Rih, Ingulets GOK and Northern GOK, and the Southern GOK joint venture suspended ore mining in early July 2022. Since then, Northern GOK temporarily resumed operations at reduced capacity. Central GOK has operated without major shutdowns, albeit at reduced capacity. The Zaporizhstal joint venture halted operations when the war started and then resumed them in early April. The facility currently operates at 50% of capacity, including a sinter plant, two of four blast furnaces and a steelmaking furnace. The plant has also launched a new product: double-weight seamless cold-rolled coils for construction applications. Although Kamet Steel has not suspended operations, it has gradually reduced the number of blast furnaces in operation. In July, its steelmakers resumed the production of railcar axles, which were previously made from the billets of Azovstal, and launched the production of MP-4 shaped sections and round sections with diameters of 22mm, 24mm and 26mm.

Regrettably, Azovstal and Ilyich Steel in Mariupol and Avdiivka Coke have suspended operations because of Russia’s invasion. The assets and city infrastructure have been shelled. Until the active phase of the Russian aggression comes to an end and Mariupol is de-occupied, it is impossible to fully assess the impact of the hostilities on these Group plants.
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Thyssenkrupp Aerospace & Saab Renew Partnership

Strategic Research Institute
Published on :
26 Aug, 2022, 6:16 am

Thyssenkrupp Materials Services unit Thyssenkrupp Aerospace and Saab announced that they will prolong their partnership in existence since 2008. Under the new agreement, the company will become the materials supplier for Saab’s subcontractors all over the world. The aerospace and supply chain experts will take care of the warehousing and quality inspection activities for the Swedish aircraft manufacturer. As part of the new contract, thyssenkrupp Aerospace will additionally take care of all warehousing and quality inspection activities for Saab, as well as their global subcontractors. With their global presence and relationships with leading materials producers, thyssenkrupp Aerospace will be the quality gate for the partners of Saab all over the world.

With precise planning, and near net shape production of parts with waterjet cutting, thyssenkrupp Aerospace improves sustainability and costs for their customer. Smart transportation routes and streamlined logistics lead to further savings in CO2, as in line with the sustainability strategy of both Thyssenkrupp Materials Services and Saab.

Thyssenkrupp Aerospace is a leading global company that delivers supply chain solutions for the aerospace industry. The company’s network spans more than 40 sites in over 20 countries and it’s over 3,500 customers include the world’s biggest aerospace manufacturers and their suppliers. Thyssenkrupp Aerospace offers supply chain management as well as a wide range of supply chain and manufacturing services. These include procurement of raw materials, warehousing, precision processing, third-party logistics, and just-in-time delivery.
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Shagang Reports 34% Decline in Profit in H1 of 2022

Strategic Research Institute
Published on :
26 Aug, 2022, 6:18 am

Jiangsu Province-based Shagang Group’s listed subsidiary Shagang Co’s operating revenue amounted to CNY 9.688 billion (USD 1.4 billion) in January-June 2022, up 4.4% YoY, while its net profit reached CNY 361 million, down 34% YoY due slackening demand from downstream users amid the Covid-19 pandemic, Russia-Ukraine conflict and global inflation negatively affected the steel industry, which negatively affected the company’s performance.

Shagang’ operating revenue has totaled CNY 18.487 billion in 2021, up 28% YoY, while its net profit reached CNY 1.08 billion, up by 66% YoY as it seized market opportunities amid the good performance of the steel industry in the given year, reduced its costs and optimized its marketing strategy, which contributed to the big rise in its net profit.

Located in located in Zhangjiagang in Jiangsu Province of China, 47 year old Shagang Group has five steel production enterprises in Jiangsu Province, Liaoning Province and Henan Province. The main products cover all types of ordinary steel, high-quality steel and special steel rebar, wire rods, slabs, and hot-rolled coils, etc. The company rolls out about 23 million tonnes of steel each year, making it one of China's top-five steel producers.

Jiangsu Shagang Group, Zhangjiagang City, Jiangsu Province

Dongbei Special Steel Group, Dalian, Liaoning Province

Fushun Special Steel, Fushun City, Liaoning Province

Huaigang Special Steel, Huai'an City, Jiangsu Province

Anyang Yongxing Special Steel, Anyang County, Henan Province
voda
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SAISI Supports Ban on Metal-Scrap Exports from South Africa

Strategic Research Institute
Published on :
26 Aug, 2022, 6:20 am

The South African Iron & Steel Institute has said that its members, ArcelorMittal South Africa, Cape Gate, Columbus Stainless, Evraz Highveld & Scaw Metals, fully support the ban on the export of scrap metal from South Africa along with the other significant measures proposed by the Department of Trade, Industry & Competition to curb criminal activity. SAISI said the “It will eliminate or reduce one of the avenues for monetizing stolen metal, its exportation. These interventions will divert significant volumes of scrap metal to the local market, leading to lower prices, which will likely disincentives theft and vandalism of infrastructure.

SAISI also said that “The ban would be beneficial to parastatals which include Transnet and Telkom, who have been plagued by thieves stealing copper in their infrastructure. Taxpayers and utility users will have less interrupted service delivery as a result of reduced theft and vandalism. There would be less wastage of government resources on unnecessary infrastructure replacement. Less pressure on rates and taxes, costs of services, and alternative services Eskom, Telkom and Transnet.”

This follows South Africa’s Trade and Industry Minister Ebrahim Patel earlier this month proposing a temporary six-month export prohibition on ferrous and non-ferrous waste and scrap metal, including copper cable and a permit system for the export of specified semi-processed metal products.

But steel is the largest scrap metal by volume in South Africa, accounting for more than 400,000 tonnes of scrap exports per annum and sold into global markets, the largest off-takers being China, India and Pakistan. XA International Trade Advisors Mr Donald MacKay said If you take the product out of the market for six months, but the generation of scrap doesn't stop, the price is going to fall quickly and quite harshly. There's no reason not to assume that then the bottom falls out of the market. That means companies such as Scaw Metals, which produces from scrap a wide range of products, including rebar, will be able to produce those products incredibly cheaply. Mini-mills already have access to cheap scrap through a long-standing legislative requirement, which compels scrap traders to first offer products to the domestic market at a discounted price before they are permitted to export it. The export ban will cause an already-significant oversupply in the domestic market to become larger and will cause exports of steel scrap derivatives to pick up at extremely competitive prices.”
voda
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US Steel Imports in July Shrink by 6% MoM

Strategic Research Institute
Published on :
26 Aug, 2022, 6:23 am

The American Iron and Steel Institute reported that the US imported a total of 2.672 million net tons of steel in July 2022, including 2.274,000 million net tons of finished steel down 5.7% YoY and up 2.1% MoM. Finished steel import market share was an estimated 25% in July. Key steel products with a significant import increase in July compared to June are wire rods up 94%, reinforcing bars up 42%, cut length plates up 22% and oil country goods up 21%. In July, the largest suppliers were Canada 0.544 million net tons down 14% MoM, Mexico 0.460 million net tons down 12%, South Korea 0.279 million net tons down 7%, Brazil 0.252 million net tons up 26% and Japan 0.173 million net tons up 76%).

Products with a significant increase in imports over the 12-month period August 2021 to July 2022 compared to the previous 12-month period include oil country goods up 111%, wire rods up 92%, plates in coils up 63%, cold rolled sheets up 61% and heavy structural shapes up 53%. Over the 12-month period August 2021 to July 2022, the largest suppliers were Canada 7.010 million net tons up 12% compared to the previous 12-months, Mexico 5.692 million net tons up 53%, Brazil 3.144 million net tons down 3%, South Korea 2.886 million net tons up 23% and Vietnam 1.262 million net tons up 179%.
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