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Households to be relocated away from steel companies

Viet Nam News reported that households near the steel companies in ?à N?ng coastal city’s Hòa Vang District will be relocated on account of the environmental pollution there. The committee’s vice chairman H? K? Minh said that following a communication between the committee and the affected residents, the decision to shift homes in return for compensation was taken on Sunday.

The relocation of all households located within 300m of the two steel companies Dana-Úc Joint Stock Company and Dana-Ý Joint Stock Company will start during the second half of this year. It is expected to be completed within the first half of the next year.

Each of the two companies will have to provide 50 per cent of the total VN? 243 billion (USD 10.7 million) required, which will be given as compensations to the affected households.

The two companies were also requested to relocate, but will be allowed to continue operations for no longer than the next 15 years to plan their relocation. During these years, they must improve their technologies to reduce environmental pollution and switch to using lighter industrial materials as per the city’s request.

The two companies were reported by the Lao ??ng (Labour) newspaper after they were found to be producing loud noises and discharging dust from their industrial operations into the neighborhoods. They also did not either upgrade their facilities or plant trees to avoid polluting the environment, as promised to residents, according to the newspaper.

Source : Viet Nam News
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Indian steel markets need to be protected from unfair competition – Mr Abbasi

First Post reported that a senior steel ministry official said that with call for protectionism growing across the globe, Indian steel markets are also required to be protected against unfair trade practices. Mr Syedain Abbasi, Joint Secretary Ministry of Steel, said “When big and established economies are protecting their industries, we need to be clear that our domestic markets are also required to be protected against unfair trade practices.

He said the steel ministry has gone the extra mile to protect the domestic players from cheap imports. He said "Steel industry is very clear about it which is why after the issue of MIP...anti-dumping duties, what we have in place is a policy for providing preference to domestically manufactured iron and steel products.

The Cabinet has also approved a policy for use of domestic steel products in government organizations.

Source : First Post
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Rebar prices in Egypt surge by USD 80 after import tariffs imposed

Reuters reported that the price of steel rebars used in construction has jumped about 17% in Egypt after temporary tariffs on imported rebars from three countries came into effect last week. The cost of Egyptian rebars has risen to EGP 10,500-10,600 (USD 580-585) per tonne from EGP 9,000 pounds (USD 497) last month.

The import tariffs on steel rebars from China, Turkey and Ukraine were aimed to protect local manufacturers. But the price rise has hit construction projects in the country which produces 6 million to 7 million tonnes of steel rebars a year.

The Trade Ministry said last week that the tariffs would remain in place for four months.

Source : Reuters
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Telangana Industries minister clueless on Bayyaram steel plant

THE HANS INDIA reported that Telangana Industries and IT Minister Mr KT Rama Rao expressed his dissatisfaction over the delay of Bayyaram Steel Plant in Mahabubabad district and even said he was not aware of inside view of the Centre. He is also clueless on the mega project becoming a reality.

The Minister alleged that “Major steel plant came up in Visakhapatnam, where iron ore is not available. But why Centre is not coming forward to set up a steel plant at iron ore-rich Bayyaram.”

Under the AP Reorganisation Act 2014, the then UPA government had promised that a steel plant would be established by SAIL (Steel Authority of India Limited) in Telangana by exploiting the iron ore mines at Bayyaram in Mahabubabad district.

The Union Ministry of Steel few months ago accorded in-principal approval for the Bayyaram steel plant in PPP mode. The approval was given based on the recommendation of SAIL. The financial performance of SAIL is posing doubts over its capacity to set up the steel plant at Bayyaram.

Public sector major SAIL, which is suffering from huge losses, is exploring various options like forging a tie-up with a private player to set up the plant, since it can fund the entire project on its own besides complaining about poor quality of iron ore available in Bayyaram.

Source : THE HANS INDIA
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Iranian long steel capacity and output disproportionate

Financial Tribune reported that Iran has high long steel production capacity, small output and low exports. The scenario for flats is the exact opposite, which is testament to Iran’s unbalanced steel sector. Iranian steel industry has a long production capacity of 30 million tonnes per year while average production in the last three years (March 2014-17) stood at 8 million tonnes per year. The products are consumed locally and not much is left for exports.

In the last 15 years, Iran has used an average of 9.3 million tonnes of longs per year. A large part of this usage pertained to the ill-famed Mehr Housing Scheme, initiated in 2007 by the previous administration to provide two million low-income people with housing units through free land and cheap credit.

However, as the project’s funding slowed down, a construction market glut and cooling demand for longs followed.

Considering the government’s tight fiscal policies and lack of funding in construction projects, the sector is unlikely to get off the ground anytime soon.

Accordingly, long usage is expected to stay at the sticky 8-10 million-tonne range for at least the next five years.

The 30-million tonne, underutilized long capacity is getting even more out of step with the industry’s long-term expansion plans.

The Ministry of Industries, Mining and Trade is planning to boost Iran’s crude steel output capacity to 55 million tonnes by 2025 to improve the country’s ranking to become the world’s sixth largest steelmaker. Expansion is already underway, as according to Iranian Mines and Mining Industries Development and Renovation Organization, output capacity grew from 32% from the fiscal 2013-14 to 29.8 million tonnes last year (March 2016-17) and is expected to reach 31 million tons by the end of the current year (March 2018).

Source : Financial Tribune
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News Probe to target Thai steel sector tax evasion

Bangkok Post reported that Thailand Revenue Department is set to launch a tax evasion probe against steel-related companies nationwide to shore up revenue leakage and boost efficiency.

Mr Prasong Poontaneat director general of the Revenue Department said that the department will summon large downstream steelmakers to guide them on how to pay tax correctly so as to avoid accounting errors. For example, he said large steel producers might directly issue invoices on goods to upstream producers, bypassing middlemen and the Revenue Department, which cannot track the tax payment records of some small and mid-sized steelmakers.

Mr Prasong said that moreover, some steel producers may have forged their invoices altogether. The department intends to check the tax payment records of industry operators, from downstream to upstream.

He said that local steelmakers have already been shielded from dumping by Chinese steelmakers and are benefiting from state investment in infrastructure mega projects adding that steel trade value is expected to reach trillions of baht a year.

The Revenue Department's latest move comes after Finance Minister Apisak Tantivorawong instructed the Revenue and Customs departments to improve their tax collection efficiency and stem loopholes used to avoid tax payments after their tax revenue target missed the mark by 50 billion baht for the eight months to May.

Source : Bangkok Post
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China produces 72.26 million tonne crude steel in May 2017

National Bureau of Statistics announced that China's crude steel output in May 2017 surged by 1.8% YoY to 72.26 million tonnes, a shade below April's monthly record of 72.78 million tonnes and finished steel product production reached 95.78 million tonnes down by 1.9% YoY.

Source : Strategic Reseach Institute
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Indian Government to promote steel houses at lower cost

Hindustan Times reported that to promote low cost accommodation as part of the housing for all scheme, the Indian government will push for building up of steel houses. The project aims at providing affordable houses to urban and rural poor. This in turn will help reduce slums. Each house will have in-built cement chambers to allow cooling and will cost about INR 2 lakh.

The steel ministry is in talks with state governments to push the project, especially in their rural areas. Model houses have been set up at Burdwan in West Bengal, Tripura and Maharashtra.

Thermocol layers would be put up in peripheral walls of these steel houses for cooling. The house, with the total area of 250 square feet, will have a living room, bedroom, kitchen, toilet and a small veranda. The houses will be more suitable for areas typically located in hills and have cool climate.

Steel minister Chaudhary Birender Singh told Hindustan Times that “These houses will also boost consumption of steel, as part of the national steel policy. We are looking at ways to push consumption of the metal besides providing an opportunity to people with limited budget to own a house.”

Mr Singh further said the ministry has written to others to consider using steel for constructing houses both in urban and rural areas.

If the experiment succeeds, the same model could be used for other purposes including building schools, panchayat buildings and bus stops in the villages.

Source : Hindustan Times
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Indian steel industry to marginally benefit from GST – Mr Abbasi

Business Standard reported that according to Mr Syedain Abbasi, joint secretary with Ministry of Steel, the impact of goods and services tax on steel industry will be marginally beneficial, with raw material duty coming down by 1-1.5%.

He said at an Assocham conference “Even in steel products while it is 18 per cent but a lot of double taxation has been moved out then again there will be an impact of 1-1.15%.”

Source : Business Standard
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JSW Steel looking to raise capital

Economic Times quoting sources reported that India's largest private steel maker JSW Steel Ltd is looking to raise capital through a qualified institutional placement route. The first person mentioned above said that "JSW Steel has initiated talks with two investment banks to understand the market for a QIP program. The company is initially looking to raise anywhere between INR 2500 crore to INR 3000 crore through this share sale program.”

The second person mentioned above said that "The management is trying to understand if they want to raise capital through share sale and the investor appetite at the moment in the market. The finalizing of bankers and other modalities will happen later once they have firmed up the plan.”

This would be the first time in over a decade that the steel maker will hit the markets to raise capital through a QIP route.

The company recently notified the exchanges that on June 29, during its annual general meeting it is seeking shareholder approval to raise nearly INR 8000 crore through various modes. Of the INR 8000 crore, it is seeking to raise INR 4000 crore through NCDs with a convertible option and rest INR 4000 crore through various equity sale routes.

Source : Economic Times
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NLMK continues to implement resource-saving PCI technology

NLMK Group, an international steelmaking company with operations in Russia, the USA and European Union, has started hot-testing the pulverized coal injection (PCI) unit at one of the largest blast furnaces of its Lipetsk plant, namely blast furnace No. 6 with a capacity of 3.1 million tonnes of pig iron per year. Hot-testing is scheduled to end and start-up to begin in Q3 2017.

Source : Strategic Reseach Institute
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Vietnam steel industry expected to grow 12 to 15 percent

Vietnam News Agency quoting discussions in a workshop titled “Steel sector dialogue: Prospects 2017-2020” in Ho Chi Minh City on June 12 reported that Vietnam steel industry is predicted to grow by 12 to 15 percent in the next five years.

According to the Vietnam Steel Association, in 2017, cast iron output is forecast to increase 80% to reach 4.5 million tonnes, while steel billets will jump 47.2% (11.5 million tonnes), finished steel products up 12% (20 million tonnes), cold rolled coils up 13% and steel pipes up 15%.

Mr Khong Phan Duc Vietinbank Securities JSC General Director said that the Vietnamese steel industry’s scale is not large, but the sector has competitive advantages, especially in production costs. He stated that in addition, the domestic demand for steel remains huge thanks to infrastructure projects and rapid urbanization in rural areas.

To help the industry thrive, VSA Vice Chairman Nguyen Van Sua suggested domestic manufacturers improve their technologies and production lines.

Source : Vietnam News Agency
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Steel: Profits and revenue up at Severfield

UK structural steel group Severfield reported that profit and revenue was up for the year ended March 31st 2017 as the firm worked on landmark projects in London. The Thirsk based group revenue was up 10% from GBP 239.4 million to GBP 262.2 million and underlying pre-tax profits were up 50% to GBP 19.8 million. Severfield undertook over 110 projects during the year in key market sectors including the roof for Wimbledon's No 1 Court, the new stadium for Tottenham Hotspur FC and a new commercial office tower at 22 Bishopsgate.

Alan Dunsmore, acting chief executive officer of Severfield, said "I am delighted to announce another set of excellent results which keeps us on track towards our target of doubling our 2016 underlying pre-tax profit by 2020. Our strategy is well-flagged and it continues to deliver operationally and financially. We have worked on some major projects during the year, especially in London, including Wimbledon No. 1 Court, Tottenham Hotspur and 22 Bishopsgate.

He added "Our return on capital employed has risen to 14.6 per cent and cash generation has been excellent. The current order book and pipeline, coupled with a continued stable market environment, will support further progress in the current financial year towards our 2020 target."

He also said that share of its profit from an Indian joint venture reached GBP 200,000, following a loss of GBP 300,000 the previous year, a move to profit for the JV for the first time.

Source : Yorkshire Post
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Mexico extends import deal with South Korean steelmakers

BNAmercias reported that Mexico extended an import agreement with South Korean steelmakers. The deal, inked in 2013, allows Hyundai Hysco and Posco to import a limited quantity of cold-rolled steel at prices which do not harm domestic producers. Mexico's economy ministry dropped an anti dumping investigation into the imports after the agreement was reached.

The companies requested a revision of the deal due to growing demand for cold-rolled steel in Mexico, including from a new plant being built by Kia Motors, owned by Hyundai Motor Company, and investment in a galvanized sheet factory by Posco, aimed at supplying the automotive sector.

The filling said that national consumption of cold-rolled steel was expected to increase 4.2% in 2016, compared to the previous year, with a 5.0% rise forecast for 2017 and 5.8% next year, citing information from steel chamber Canacero.

In light of increasing demand, the ministry raised the import limits for both companies.

Hyundai Hysco will be allowed to import 35,000 tonne in 2017 and 45,000 tonne next year, compared to 25,000t and 30,000t, respectively, under the 2013 agreement.

Posco's limit is lifted to 530,000 tonne this year and 545,000 tonne in 2018, from 500,000 tonne in each year previously.

Dumping is a key threat to Mexico's steel sector. In response, the ministry imposed antidumping duties on imports of flat coated steel from China and Taiwan earlier in June. Four new duties on steel products were introduced in 2016.

Source : BNAmericas
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Cyclomag waterless ore processor improves mining efficiency

The Lead South Australia reported that the Cyclomag has been developed by IMP Technologies in South Australia and works in conjunction with the company’s Super-Fine Crusher to deliver enhanced iron content with fewer impurities. It utilises rare earth magnets to pull the magnetic material out of an airflow, while the tailings are separated and collected at the other end of the machine.

Large volumes of water are traditionally used in beneficiation processes. The Cyclomag is not only waterless but also delivers ore with an increased iron content of up to 70% after a single pass.

IMPTEC plans to unveil its latest device at the Iron Ore conference in Western Australia 2017 next month.

The technology is also being used by a research team from the University of South Australia to study its potential for other ores.

Professor Bill Skinner from the university’s Future Industries Institute said the efficiency ratings of the Cyclomag and Super-Fine Crusher working together ranged from 80 – 90 % from ore to product. He said that “The grades are high enough that they can go straight to steel production because of the combination of the crushing and dry separation. They are as good, if not better than what is currently being produced out of magnetite projects.”

Professor Skinner said the process was most beneficial when used on hard materials such as zircon, black sand and quartz. He said that “It could also be used for your sulphide ores, for example copper and gold, where the combination of compression and shear could result in much better liberation at a coarser grind size.”

Conventional methods include breaking down large rocks to a few centimetres in diameter, crushing them further to feed a ball mill, and grinding the minerals with the help of media and water until the material becomes a slurry.

The Super-Fine Crusher shortens the process by removing the need for water and media. Crushing minerals from 10mm down to 10 microns, eliminating the need for reprocessing.

The Cyclomag utilises the benefits of the Super Fine Crusher to liberate and separate magnetic iron ores during beneficiation.

This results in a power reduction of about 20 to 40% and limits water use to dust suppression and slurry transport.

Source : The Lead South Australia
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President nod allows restart of iron ore export from Uganda - Report

The East African reported that after publicly advocating value addition by announcing a ban on export of Uganda’s iron ore in 2013, President Mr Yoweri Museveni seems to have caved in to pressure from one mineral dealer and backtracked on the position. Details of what influenced President Museveni’s change of heart are not known, but an 18-month investigation by extractive industry watchdog Global Witness reveals that the dealer, Moses Kamuntu, met the president and gained permission to continue exporting the ore.

Global Witness report titled Undermined, quotes Mr Kamuntu as saying “Iron ore export is limited to my company. Don’t ask me how I can do that. That is personal.”

The report also reveals that it is almost impossible to do business in Uganda’s mining sector without paying bribes or drawing support from high-level political connections.

Mr Kamuntu had two location licences for small-scale miners, but not international exports.

Since 2014, President Museveni has repeated the directive on international mineral wealth at conferences held in Uganda banning iron ore exports. The president’s directive revoked several iron ore export permits. The president’s position was that the ore should be locally processed to feed the steel industry which relies on imported iron rolls.

Source : The East African
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Iran private iron ore miners left high and dry

Financial Tribune reported that Iranian iron ore sector has experienced tough times in the last few years. Mr Bahram Shakouri deputy head of Iranian Iron Ore Producers and Exporters Association was quoted as saying by Bourse Press that “Of the 145 small and medium iron ore mines operating in the fiscal year 2013-14, only nine are still producing.”

The official noted that small and medium mines had created close to 8,000 jobs, at least 5,000 of which were lost following the mines’ closure.

Mr Shakouri said Iran produced close to 52 million tons of iron ore in 2013-14, 65% of which were made by small and medium mines. He added that “The smaller mines also accounted for 85% of the sector’s employment.”

According to Sajjad Ghoroqi, a member of IROPEX, private miners control over 60% of Iranian mines with less than 1 million tonnes of reserves. He said that “The rest, with reserves from 1 to over 50 million tonnes, are either completely state-owned or run by quasi-state entities.”

Nearly all small mines are privately-owned and susceptible to closure under the current tough market conditions. Most of the operational iron ore mines, however, are state owned and capable of weathering financial hardships by sweeping potential losses under the rug.

Mr Shakouri believes that high taxes and improper policymaking are the root causes of most of the mining industry’s woes. He said that “Depressed global mineral prices, export restrictions, high royalties, rising taxes and lack of crucial infrastructure such as water, electricity and rail transportation have all caused Iran’s mining industry to lose its competitive edge, leading to loss of jobs and lower productivity.”

Iron ore prices came out of 2015 the lowest in years, as it dropped to about USD 30 per tonne in December. The steelmaking material took on a positive trend early last year and over signs of China’s cutbacks in its steelmaking capacity reached USD 60 to USD 65.

The commodity continued its seesaw trend until it started to rise sharply in late 2016 and hit highs reaching up to USD 90 per tonne, according to Markets Insider tracking the industry standard NYMEX 62% Fe CFR China.

Source : Financial Tribune
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Ukraine no longer among top 10 steel maker

Sputnik reported that Ukraine's once proud metallurgical industry, previously accounting for 10-13% of the country's GDP, and providing up to 40% of the country's export earnings, is facing a severe crisis. The latest figures show that the production of steel, rolled metal and iron were down 18 to 22% in the first five months of 2017.

According to stats published by Ukrmetallurgprom, a Ukrainian association of metallurgical plants, steel production fell by 18%, to 8.7 million metric tonne between January and May 2017, year on year. In the same period, output of rolled metal products dropped 20%, to 7.46 million tonne, while iron production fell 22% to 7.92 million tonne. Coking coal production also fell 25%, to 4.18 million tonne, indicating a major drop in producer demand.

Throughout the 1990s and into the early 2010s, Ukraine enjoyed the status of a major steel-producing power. Responsible for about a third of Soviet steel production in 1990 (when the USSR was ranked number one in global steel output), Ukraine ranked fifth in the world in steel output immediately following independence in 1992. A quarter of a century later, the country faces the prospect of dropping out of the top ten producers.

Commenting on the trend, Mr Svobodnaya Pressa contributor Stanislav Vorobyov explained that in contrast to Russia, whose metallurgical enterprises are strewn across the country (including the Ural Mountains, Siberia, and western Russia), Ukraine's output is highly concentrated in the country's southeast.

Nearly all of Ukraine's steel enterprises (which include 19 large and medium-sized mills, 12 tube mills and 20 metalware enterprises) are concentrated in an area roughly 250 by 200 km – which features good industrial and transport infrastructure, and is close to the sea ports of Mariupol and Nikolaev.

The country's steel-producing regions include Zaporozhe, Dnepropetrovsk, Nikolaev and Kharkov, as well as the civil war-torn regions of Donetsk and Lugansk. High quality iron ore is extracted mainly in the Krivoy Rog iron basin in Dnepropetrovsk region, while coking coal is mined in Lugansk and Donetsk regions, and processed in regional coking plants (the largest being the Avdiivka Coke Plant, located near the frontlines of the frozen civil conflict).

Source : Sputnik
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China's overcapacity cuts progressing smoothly: NDRC
Xinhua | Updated: 2017-06-15 16:15

BEIJING - China's top economic planner announced Thursday that the country's drive to cut overcapacity in steel and coal has progressed well.

As of the end of May, 42.39 million tons of crude steel capacity and 97 million tons of coal capacity had been cut, accounting for 84.8 percent and 65 percent of the annual goals, respectively, said the National Development and Reform Commission (NDRC).

China will phase out about 50 million tons of crude steel capacity and over 150 million tons of coal capacity this year, according to the NDRC.

By the end of June, all facilities producing inferior-quality steel bars will be dismantled, the NDRC said in May.

As excess capacity has weighed on China's overall economic performance, cutting overcapacity is high on the reform agenda. In 2016, China completed both its annual targets for coal and steel capacity reduction ahead of schedule.

The government plans to adopt more methods based on market rules and related laws while phasing out outdated capacity. It also decided to eliminate illegal production facilities and prevent those that have been shut down from opening again.

www.chinadaily.com.cn/business/2017-0...
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India steel supply likely to exceed domestic demand - IIFL

India Infoline reported that following strong 8.5% YoY (7.6 million tonne volume) growth in Indian crude steel production in FY17, we would focus more on sluggish domestic steel demand, since this would determine further volume/price growth over FY17-20. Expected capex spends in large steel consuming sectors do not lend comfort to support 4.5% CAGR in domestic demand.

This is critical to absorb incremental supply of 14 million tonne, even assuming PSUs deliver 50% of our base-case volume estimates and net exports sustain at current levels. This would limit pricing gains for steel producers, especially if JSW Steel and Tata Steel operate at desired maximum utilization, given their lower costs. Although we remain positive on both, sustained healthy demand growth would be the key to stock price performance from here on. We estimate 20 million tonne of incremental domestic steel supply over the next three years. Out of this, 11 million tonne could be delivered by PSUs viz. SAIL, NMDC, and RINL, if they are able to ramp up their upcoming capacity.

There have been repeated delays during construction, commissioning and ramp-up of new steel capacities by these PSUs in the past few years and further delays cannot be ruled out. Even assuming these PSUs are able to deliver only 50% of their expected incremental volumes; domestic steel production would increase by 14 million tonne by FY20, implying 4.6% volume CAGR over FY17-20. If PSUs deliver 75% of base case estimates, production CAGR would increase to 5.4% over FY17-20. Beyond 2020, there is a visibility for JSTL’s expansion at Dolvi (5 million tonne per annum to 10 million tonne per annum) and Tata Steel’s Kalinganagar Phase 2 (3 million tonne per annum to 8 million tonne per annum). These two projects would alone add 8 to 10 million tonne over FY20-25.

Domestic steel demand remains subdued. India’s finished steel consumption growth was a modest 3% during FY17, much lower than the earlier expectation of 6-7% growth. Steel demand growth remained low at 3.4% in April and 1% in May. In the absence of a recovery in domestic steel demand, selling incremental production would be a challenge in the near term since avenues for further increasing exports would be limited and import substitution has largely played out.

Source : Financial Express
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