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Delhi steps up talks with Iran for USD 5 billion railway export plan

Even as New Delhi keeps a close watch on the recent unrest in Iraq, it is expediting talks with Tehran for over USD 5 billion worth project exports from India to Iran’s railway sector.

Official sources said that Tehran has agreed to seek lines of credit from the Export Import Bank of India in rupee for financing such railway project exports from India to Iran. India had given Iran the option of choosing either using the rupee payment mechanism or the LoC.

The source said that India is exploring the possibility of helping build more railway lines in Iran in addition to the Chabahar railway project to connect their manufacturing and mining centres to their ports.

Project exports from India to Iran in the railway sector will include supplying and laying of tracks, building signaling systems, carrying out electrical work and upgrading existing rail operations.

The Iranian government is planning to expand the country’s railway network annually by 500 kilometers to 1,000 kilometers to ensure it touches 25,000 kilometers by 2025 from around 13,000 kilometers now.

The Exim Bank data as on January 10th showed that it had in December 2009 disbursed a USD 200 million general purpose LoC to many Iranian commercial banks for financing India’s exports to Iran. The ministries of finance and commerce are in discussions on LoCs in rupee to Iran for long term project exports, especially in the rail sector.

An official said that “Iran’s interests in expanding their rail network match our economic and strategic interests too. Once the initial projects take off, it will lead to large orders from Iran. In the near term, we are targeting project exports in the rail sector worth at least USD 5 billion.”

India’s motive in helping build rail links within Iran, especially to Chabahar and other ports, is that they can then be used as a gateway for accessing other Central Asian markets and Afghanistan.

Public sector companies such as Ircon International are taking forward their work on laying tracks and setting up other related equipments, while others such as SAIL, Essar and Jindal are looking at exporting steel for building railway infrastructure. Iran had also sought help from the public sector consultancy firm RITES and logistics major CONCOR for feasibility studies.

Source - Financial Express
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Iron ore prices go below USD 90 level

Reuters reported that iron ore futures in China and Singapore dropped on Monday to the lowest since their launch last year, reflecting plentiful supply and tighter credit that has slowed purchases by Chinese mills despite a more than 30% plunge in spot prices this year.

The weaker futures suggest spot iron ore prices could extend their drop to below USD 90 per tonne later in the day to touch a fresh low since September 2012. The July iron ore contract on the Singapore Exchange dropped nearly 1% to USD 88.99 per tonne, its lowest since SGX launched the futures in April last year.

Iron ore for delivery in September on the Dalian Commodity Exchange fell to as low as CNY 658 per tonne, its weakest since the bourse introduced the contract in October.

According to data compiler Steel Index, iron ore for immediate delivery to China .IO62-CNI=SI fell 0.7% to USD 90.90 per tonne on Friday, its lowest since September 7, 2012.

Inventories at ports rose 0.1 percent to 106.56 million tons last week, near a record 106.86 million tons reached in the week to May 30

An iron ore trader in Shanghai said that liquidity is a big issue at the moment because many banks are not willing to open letters of credit.

A probe into metal financing deals in China's Qingdao port has spurred caution among lenders many of which have already been trimming their exposure to sectors plagued by overcapacity such as the steel sector.

Morgan Stanley last week cuts its iron ore price estimate for this year and the investment bank foresees a further drop in 2015. Morgan Stanley forecasts iron ore to average USD 105 tonne for the whole of 2014 versus a year to date average of USD 113 a tonne. Back in May, the bank still pegged USD 118 for this year.

Source - Reuters
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US crude steel production last week up 0.3% WoW

AISI announced that in the week ending June 14, 2014, domestic raw steel production was 1,850,000 net tons while the capability utilization rate was 76.9 percent. Production was 1,824,000 net tons in the week ending June 14, 2013, while the capability utilization then was 76.1 percent.

The current week production represents a 1.4 percent increase from the same period in the previous year. Production for the week ending June 14, 2014 is up 0.3 percent from the previous week ending June 7, 2014 when production was 1,845,000 net tons and the rate of capability utilization was 76.7 percent.

Adjusted year-to-date production through June 14, 2014 was 43,235 net tons, at a capability utilization rate of 76.3 percent. That is a 0.2 percent decrease from the 43,339 net tons during the same period last year, when the capability utilization rate was 76.7 percent.

Broken down by districts, here's production for the week ending June 14, 2014 in thousands of net tons: North East: 229; Great Lakes: 648; Midwest: 246; Southern: 638 and Western: 89 for a total of 1,850.

Source - Strategic Research Institute
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Australian iron ore miners brace for hit as commodity price plunges to nearly 2 year lows

The Australian reported that Australia’s iron ore producers are likely to take a hit in the market after the price of the bulk commodity fell to an almost two year low over the weekend.

The top producers, BHP Billiton, Rio Tinto and Fortescue Metals Group, all saw their share price take a shave at market close when the iron ore price hovered at a 21 month low of USD 91.50 per tonne.

The price of the steelmaking commodity lost more ground at the weekend and is now sitting at USD 90.90. The price of Australia’s top export was down over 3% last week, which was the eighth weekly loss in nine.

The iron ore price has now lost about 32% this year with the profit hit on producers likely to be seen when the next set of financials are released in August.

Iron ore futures in China also slid to a new record low on Friday, falling to their weakest level since the market started in 2009 as consumption of the commodity slows along with the pace of construction activity during China’s hotter summer months.

Citi’s Mr Ivan Szpakowski outlined in a recent note on iron ore that the price had now decisively broken out of the USD 120 per tonne to USD 140 per tonne range where iron ore had traded over 2012 and 2013. The decline has spurred a race among analysts to lower price forecasts for the remainder of 2014, with many competing to be the most bearish.

Mr Szpakowski said that an ore price of USD 90 per tonne would be supported by traders and steel mills and could force many high cost Chinese producers to cut back output. But, if that price is sustained, many mines outside China could also cut back production.

Mr Rene Kleyweg De Monchy analyst said that “On the back of slowing demand, especially from China, faster than expected capacity additions from the majors and tougher credit conditions for traders and steel mills in China, we are trimming our iron ore price forecast through to 2016.”

Mr Kleyweg De Monchy said that “At the same time as the world’s largest producer of steel and consumer of seaborne iron ore has seen a slowdown in growth, supply increases have continued apace, mostly from the three large Australian producers BHP, Rio and Fortescue. We expect the low cost Australian additions to push out the high cost Chinese supply.”

Source - The Australian
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Automotive steel innovations by ArcelorMittal - CTO Mr Ludkovsky

Following ArcelorMittal’s successful night at the Platts Global Metal Awards 2014, when the company picked up three prestigious industry awards for Deal of the Year, Lifetime Achievement and Industry Leader, the Lifetime Achievement’ award winner, Mr Greg Ludkovsky VP for global research and development, spoke about ArcelorMittal’s automotive steel innovations and why steel is the right material for the car industry.

Mr Ludkovsky said that “The steel industry can offer fuel efficiency and the lowest cost to the final consumer, when compared to aluminium, on both sides of the Atlantic.”

Mr Ludkovsky said that “With car manufacturers looking for ever-more environmentally friendly models, ArcelorMittal’s R&D team will continue to pursue new and innovative steel solutions for lighter and safer vehicles and ensure steel continues to be the material of choice for car manufacturers.”

He said that “If you take a look at the product development that took place in aluminium over the past decades, you will find that very little progress has been made in terms of significant changes to its material properties. They have had the same high-strength that is three to four times lower than steel, for years and years. We on the other hand, are constantly reinventing ourselves. For example, today we are enjoying 1500 MPa press-hardened product called Usibor. Our goal at ArcelorMittal is to have another Usibor product of 2000 MPa within the year.”

Source - Strategic Research Institute
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ArcelorMittal pays USD 90 million to settle steel antitrust suit

Law360 reported that an Illinois federal judge on Friday preliminarily approved a USD 90 million cash settlement between ArcelorMittal SA and direct steel purchasers, a deal that would resolve claims against the steel giant in a proposed class action alleging a number of manufacturers schemed to inflate steel prices.

US Judge James B Zagel granted tentative approval to the USD 90 million deal, which was submitted to the court last week and hailed by the plaintiffs as a substantial sum.

The plaintiffs include Standard Iron Works, Alco Industries Inc and others.

Source - Law360.com
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ArcelorMittal beams help expand railway lines in Luxembourg historic centre

Steel from ArcelorMittal’s Differdange facility in Luxembourg is being used in a unique construction, juggling modern day infrastructure and 400 years of history.

Two hundred tonnes of coated 16 meters HEB1000, HEB600 and HEB300 finishing beams produced at the Differdange site in the south west of the country are helping expand the Pulvermuhle railway bridge in Luxembourg city.

The viaduct which currently has two tracks crossing the Alzette River enabling the connection of Chemins de Fer Luxembourgeois Northern railway lines is being transformed into a four track railway with the construction of a new 242 meter long viaduct.

As part of the project, a tunnel connecting to the viaduct and running directly beneath ArcelorMittal’s offices on Boulevard d’Avranches had to be completely demolished and replaced.

The elaborate 18th century Spanish turret above the tunnel, however, had to be preserved in its entirety. Both the tunnel and turret projects needed to be accomplished without interrupting traffic on the major road.

ArcelorMittal experts and steel proved to be the solution for CFL, thanks largely to the high quality of products and services provided by the production site in Differdange and its beams finishing centre (C3P).

Mr Vincent Genot project manager of ArcelorMittal Differdange’s beams finishing centre said that "This is a complex construction in the Grund, the historic heart of the city of Luxembourg. It is very rewarding to take part in a project of this magnitude, especially because the construction site is located close to the ArcelorMittal headquarters."

Source - Strategic Research Institute
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Steel ministry ask finance minister to retain 30pct export duty on iron ore

Saying that restrictions on mining of iron ore in Karnataka and Goa has led to a steep drop of 35% in its output, the steel ministry has asked the finance ministry to continue with the 30% duty on ore exports while abolishing the import duty in the Budget next month.

Portraying a grim picture on paucity of iron ore, the ministry has argued that adequate availability of the mineral is imperative as it is the lifeline of steel production. A 35% dip in output over past 4 to 5 years has triggered concerns within the steel industry.

This steep fall in ore output is primarily due to restrictions imposed on mining in the 2 largest ore producing states Karnataka and Goa along with output curbs by Orissa. The country used to produce 200 million tonne of iron ore a year and exported 50% of it before the Supreme Court imposed a ban on exploration in Karnataka to curb illegal mining in 2011.

This raw material insecurity in certain areas of the country is likely to accentuate further as fresh capacities come into production, the steel ministry has told the finance ministry as per its Budget 2014 to 2015 wishlist.

Although iron ore exports have progressively dropped form 117.37 million tonne in 2009 to 2010 per annum to 12.24 MT in 2013 to 2014, its production has also slided from 218.65 MT to 145.48 MT in the same period which neutralised the benefits of lower exports for the domestic steel producers.

The steel ministry said that to offset the scarcity due to lower production, the steel makers resorted to imports which shot up to 1.87 MT in 2010 to 2011 and then came down to 0.37 MT in 2013 to 2014.

Accordingly, it is recommended that the export at 30% in case of iron ore and 5% in case of ore pellets may be continued whereas the existing import duty of 2.5% for iron ore and pellet imports may be brought down to zero. It has also suggested that the custom duty on stainless steel products be increased from 5% to 7.5% primarily due to a surge of their imports from neighbouring China.

The finance ministry has been said that imports of stainless steel flat products have increased form 14,890 tonne in 2009 to 2010 to 1,30,440 tonne in 2013 to 2014. Since significant capacities have been added and the existing plants are running at 36% of their total capacity utilisation, there is a clear case for upping the custom duty.

Source – Indian Express
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Global iron ore price slump not to trigger Indian imports - Reports

The Business Standard reported that Indian miners and traders are confident that recent drop in international iron ore prices will not trigger import orders from local steelmakers due to higher transportation cost at ports and gradual easing of supply situation.

They said that the global rates are still higher than locally produced iron ore and hence buyers would prefer to rely on domestic supplies.

Prices of most traded grade of iron ore fines in Chinese market fell to USD 90.90 per tonne, hitting more than 21 month low as demand waned in that country amid slowdown of construction activities. The rates have been hovering around USD 90 for last 3 weeks.

It said that miners in Odisha, which accounts for more than half of total Indian output of about 135 million tonne, the landed cost of imported ore is still higher than the pit head price of the material.

An official with Sirajuddin mines said that “Iron ore fines with 62% Fe content is now sold at around INR 2,500 at mines pit head. After adding royalty, taxes and the cost of transportation to plant, it would be around INR 4,500 per tonne, which is still lower than import cost of INR 5,400 per tonne at ports. I do not think the buyers will be interested for imported ore at this price which produces more 4 million tonne of iron ore every year.”

A trader of JSW Steel said said that “I do not think it would be viable for us to import at current rates. The company procured nearly a million tonne ore from Odisha last fiscal.”

TATA Steel, which has already ordered for nearly 6 consignments of iron ore when Odisha government asked it to halt mining operation at 8 of its mines following a Supreme Court order, said that it could possibly cancel some orders as it has recently got the permission to restart mining operation.

An official of the company said that “Importing iron ore would never be suitable for us, but we had ordered for 6 consignments owing to emergency needs. Since most of our mines are working currently, we might cancel some of the shipments if it is possible.”

Source - Business Standard
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Iron ore futures rebound from record lows but outlook shaky

Reuters reported that iron ore futures in China and Singapore bounced off record lows on Tuesday as investors covered short positions although plentiful supply of the steelmaking commodity kept gains in check.

Iron ore for September delivery on the Dalian Commodity Exchange, the most active contract, closed 0.9% higher at CNY 667 per tonne, after earlier touching CNY 656 its lowest since being launched in October.

The July iron ore contract on the Singapore Exchange rose 1.2% to USD 89.24 per tonne, rebounding from a session low of USD 87.69, which was its weakest since SGX introduced iron ore futures in April last year.

Chinese steel futures also recovered. The most traded rebar for October delivery on the Shanghai Futures Exchange gained 0.2% to settle at CNY 3,018 per tonne after falling to a record low of CNY 2,994.

An iron ore trader in Singapore said that there's some short-covering after the sharp fall in prices but the outlook is still bearish because of an oversupplied market. He said that “We constantly receive offers from steel mills who are offloading their third-quarter allocation from their long-term contracts. He gets such offers of cargoes from about nine Chinese mills on average each day.

An iron ore trader in Shanghai said that "We are still getting calls from our clients seeking to buy cargoes. But the market is weak because of the imbalance between supply and demand.”

Source – Reuters
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Workers call on lawmakers to protect the US steel industry

WBRC reported that a large crowd gathered at US Steel in Fairfield to protest trade laws they believe are flooding the market with inferior products that could threaten the US industry.

Mr Don Eckard workers at US Steel said that "We're not being dealt a fair hand. Tube and pipe products made by him and his co workers are being replaced by imported ones. They dump it into this country at a lower cost than what we can make it for. That's not right to people in America."

Mr Eckard said that the workers' concern is that American made steel products won't be needed and the drop in demand will lead to plants shutting down. Washington has the ability and power to make it to where we can keep our jobs. They have the power to stop these other countries from dumping into our country.

He said that they all want to keep their jobs but they also want a fair chance to compete in the market. If it goes into US soil, we need to be the ones to make it."

Congressman Mr Robert Aderholt said that "There are people in Washington trying to do our part. And we understand we've lost a lot of jobs in the State of Alabama, in the steel industry. We can't afford to lose anymore. I got a family to support. Everybody here you see, they've got families to support."

Source – WBRC
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Pollution issues addressed by TATA Steel in Port Talbot

TATA Steel has fully addressed the causes of the dust pollution which affected Port Talbot last summer.

Following complaints in July 2013 Natural Resources Wales launched an investigation with TATA to pinpoint the source of dust problems.

NRW issued an enforcement notice ordering the company to carry out a series of actions to reduce dust. After reviewing Tata’s responses to the notice, NRW has now confirmed that the company has not only complied with the requirements of the notice but has also made additional improvements.

Mr Paul Gibson from NRW said that “By issuing this notice we have ensured the impact of dust pollution has been reduced for the people of Port Talbot. We also recognise and commend the additional measures the company has put in place to minimise dust releases from the steelworks and believe this investment highlights TATA’s commitment to reduce dust emissions and develop further environmental improvements.”

He said that “We will continue to ensure companies are complying with the conditions of their permits and their activities are not affecting the quality of life for local people.”

An investigation by NRW found the sinter plant and blast furnace stock houses where raw materials are kept and moved into storage silos were the main source of the dust. The enforcement notice required TATA to make a number of improvements to ensure that releases of dust generated by the movement and handling of raw materials were kept to a minimum.

Natural Resources Wales will be writing to those residents who reported the dust pollution to provide further details of the action taken and what happens next. Their compliance assessment and follow-up inspection findings will also be placed on the NRW’s Public Register.

A TATA Steel spokesman said that "We have worked closely with Natural Resources Wales and with the local authority and we too have been pleased with the progress we have made on this important issue. But we are not complacent, we are very sensitive to the views of local residents and the local community in general and we will continue to be vigilant, responsive and take action when it is appropriate."

Source – South Wales Evening Post
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China's iron ore output rises 12.7pc in May

Government data showed that China's iron ore output rose 12.7% from a year ago to 131.9 million tonnes in May.

Data from the National Bureau of Statistics showed that total production in China, the world's top iron ore consumer, rose 11% to 568.5 million tonnes for the first five months of the year from the same period of last year.

Source – Reuters
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EPA finalizes greenhouse gas permit for Voestalpine iron production plant

The US Environmental Protection Agency has issued a final greenhouse gas Prevention of Significant Deterioration construction permit to Voestalpine for an iron production plant in San Patricio County, TX.

The facility’s process for producing iron will use minimal natural gas and will be 40% more efficient than traditional methods. The permit is another in the series of permits drafted by the Texas Commission on Environmental Quality and issued by EPA under a program to facilitate timely permitting for applicants in the State of Texas.

Mr Ron Curry Regional Administrator said that “Voestalpine shows energy efficiency is a common sense strategy for success, not just in business but for the environment as well. The joint EPA and TCEQ permitting program is helping Texas business grow while building greener plants.”

The plant will reduce iron ore pellets, which will be used as raw material input at steel mills. The direct reduced iron process will use only clean burning natural gas instead of solid fossil fuels. The estimated project cost is USD 740 million and will bring 1,400 construction jobs to the area. Once complete, the facility will create around 150 permanent jobs.

In June 2010, EPA finalized national GHG regulations, which specify that beginning on January 2nd 2011, projects that increase GHG emissions substantially will require an air permit.

EPA believed states are best equipped to run GHG air permitting programs. Texas is working to replace a federal implementation plan with its own state program, which will eliminate the need for businesses to seek air permits from EPA. This action will increase efficiency and allow for industry to continue to grow in Texas.

EPA has finalized 43 GHG permits in Texas, proposed an additional six permits, and currently has 21 additional GHG permit applications under review and permit development in Texas.

Source – Strategic Research Institute
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How aluminum changed the world for good and bad

PHYS ORG reported that for many of the pieces of modern life that emerged and spread during the 20th century, from air travel to electric service to cans of soda, you have aluminum to thank.

The strong but lightweight metal helped change the world in ways previously unimaginable. But the quest for more aluminum has also had damaging ripple effects on the environment and indigenous populations around the world.

Those two sides of the aluminum story help explain why Drexel sociologist Ms Mimi Sheller has written a book about it. Ms Sheller, a professor of sociology and the director of the Center for Mobilities Research and Policy, studies how new infrastructure and technology developments are changing the way people move around the earth and whether they can avoid damaging the earth in the process. Her book Aluminum Dreams: The Making of Light Modernity was published by MIT Press earlier this year and Ms Drexel now spoke with her about why this is a metal worth writing about.

Q - How does a sociologist come to write a book about an element in the periodic table?

A - The kind of sociology I'm interested in has started to look at the intersection of social or human processes with material and environmental processes. That's a really big emerging field for research right now, sometimes called human and natural systems research. But my real interest in aluminum itself came out of my background of Caribbean studies. The Caribbean region throughout the 20th century was the biggest source of bauxite ore, the material mined to produce aluminum. When I started looking into the impacts of bauxite mining and its role in Caribbean history, it connected me to the global history of aluminum.

Q - As far as its properties as a metal, what makes aluminum so useful?

A - Aluminum is very strong in proportion to its weight. So compared to steel or copper, it has this lightness and yet a great strength at the same time. It's also nonmagnetic and has corrosion-resistant properties. The weight and strength factors make it really good for transportation, both in vehicles and in packaging. Its corrosion resistance and nonmagnetic qualities make it really useful in building applications and electrical equipment of any kind. When you put those things together, it became the ideal metal for spaceships and satellites.

Q - What has been its social and historical significance?

A - The book looks at what I call the light side and the dark side. The light side is that the development of uses for aluminum and the accompanying innovation, creativity and design brought us all sorts of wonderful things in the 20th century. It helped the takeoff of civil aviation. It helped in bringing electric grids across the country. It brought us all kinds of things around the home that were lighter and more durable, and, of course, faster vehicles. And above all, I think the thing people think of most is packaging: aluminum cans and aluminum foil.

The dark side is about a different kind of social impact: the impact on the regions of the world where the mining takes place, and the pollutants that result. After bauxite ore is mined, you're left with a substance called red mud, which has all kinds of heavy metals and caustic substances in it. And the smelting of the ore into actual metal is a really energy intensive process. It required the building of huge hydroelectric dams, many of the biggest in the world. And though hydroelectric power is a clean energy in terms of carbon dioxide, it floods tens of thousands of acres of land. Many of the places where that happened were on land appropriated from indigenous, tribal or aboriginal peoples. So there have been a lot of human rights violations that have helped make what I call light modernity possible.

Q - What's the answer for the future?

A - The project took me from the red mud lakes left behind in Jamaica to the hydroelectric projects being built in Iceland. When I went to Iceland, there was a big protest movement against smelting. But what I found was that the activists themselves were very dependent on aluminum. We flew in airplanes to get there. We put up aluminum tent poles. We cooked vegan community meals in aluminum pots. It made me think that there are some contradictions here. We can't just easily get rid of this metal.

Aluminum is really valuable, and we actually need to value it more. As consumers, we need to appreciate it and not just throw it away. It only takes 5 percent as much energy to recycle your aluminum as it does to make it new. In the U.S., we throw away about 55 billion cans each year, all of which could go back into production quickly. But I realized that the other side that needs to be addressed is the production side. A handful of big transnational corporations control the industry, and they really need more transparency, accountability and corporate responsibility.

Source – PHYS ORG
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ArcelorMittal tube plant in Ostrava attracts record breaking number of visitors

On June 7, to mark the 65th anniversary of its tube rolling mill, ArcelorMittal tubular products Ostrava invited employees as well as their families and friends to an open day event. More than 750 people accepted the invitation, the highest number of open days visitors in the history of the site.

Mr Libor Cerny CEO of ArcelorMittal tubular products Ostrava said that “The fact that so many employees came to spend a Saturday morning at the tube plant and show their worksite to their families and friends is a clear sign that our employees are proud of the company they work for. We received very positive feedback from the visitors, which motivates us to organise a similar event in the future.”

A 120 strong organising team of performers and ArcelorMittal employees made the event possible. The programme included a visit to all three production shops two tube rolling mills and the welding shop which the visitors were able to see in operation. Each 70 minute long visit was attended by a group of 20 people, accompanied by two employees who provided visitors with information on the operation of the entire tube plant including the tube manufacturing process.

The celebration also included special activities organised by art groups that received donations from ArcelorMittal as part of the mini grants project. Visitors were also entertained with a performance by the Kosatka Mini Theater and a performance by the Funky Beat dance ensemble from Frydek Mistek. ArcelorMittal Ostrava’s fire brigade helped entertain the visitors as well.

Source – Strategic Research Institute
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Russian steel makers could face hike in US import duties

Reuters reported that the US steel industry is considering challenging a trade deal with Russia that governs imports of hot-rolled steel, potentially reviving a decades old dispute amid mounting tensions over Russia's actions in Ukraine.

Sources said that a so called suspension agreement struck after the Cold War has sheltered Russian steelmakers from steep anti-dumping duties on hot-rolled coil, instead setting a cap on HRC imports and a minimum price that many in the US industry believe is too low even after a 2012 revision.

An industry source familiar with the situation said that steel companies were looking at urging the US administration to drop or adjust those exemptions.

Imports of hot rolled, flat rolled, carbon-quality steel products from Russia rose 162% in the 3 months through April, compared with the previous three month period.

An attorney familiar with the Russian case said that "Given the volume of imports coming in, the industry is actively exploring its options to terminate or modify the agreement. We are in the process of preparing a filing for the US government."

Source – Reuters
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China steel and iron ore futures off highs after housing data

Reuters reported that Chinese steel and iron ore futures came off session highs after data showed Chinese home prices fell for the first time in two years, reflecting continued pressure on the housing market that may dent demand for steel.

The price of the benchmark 62% iron ore edged up to USD 89.30 per tonne on Tuesday, from USD 89 the previous day which was its weakest since September 2012, based on data compiled by Steel Index.

Rebar for October delivery on the Shanghai Futures Exchange was steady at CNY 3,009 per tonne by midday after peaking at CNY 3,027 earlier.

Official data showed that China's average new home prices edged down in May underlining a downtrend taking hold in the market as the world's No. 2 economy slows.

Mr Zhou Ting analyst at Jinrui Futures in Shenzhen said that "The real estate market is seeing a tough period this year and so is steel. But I don't think the government will allow a big drop in housing prices, they will not want to see a crash."

Source – Reuters

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POSCO wins World's Most Competitive Steelmaker award

POSCO received the "World's Most Competitive Steelmaker Award" for the fifth consecutive year from renowned steel market information provider World Steel Dynamics.

The WSD assessed 36 steelmakers around the world in 23 categories, including productivity, profitability, technology innovation, human resources, financial stability, procurement and cost saving.

POSCO earned 7.91 points on average, defeating its rivals, such as American steelmaker Nucor, Japanese companies NSSMC and JFE, by a comfortable margin.

Source – Korea Times
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