Eurobench.com

voda 26 augustus 2021 17:15

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German scrap market expects unstable prices in September
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German scrap prices declined in August due to the traditional summer holidays in Europe and lower purchases from Turkey, according to German scrap market participants.

Prices in southern Germany, as well as in the north and west, decreased €20-40/tonne ($23-47/t) this month, a Bavarian buyer tells Kallanish.

The nationwide average price has decreased this month by €30/t, with, for example, old thick scrap sort 3 down from €480/t ($564) to €440/t in August’s negotiations. The price for new scrap sort 2/8 meanwhile has reached €450-460/t in Germany.

The price for E40 shredded scrap reached €465/t in August.

In Austria, some scrap prices increased by €20/t depending on the sort, others declined by €25/t this month. Thus, old thick scrap sort 3 decreased to €455/t, but new scrap sort 2/8 hit €510/t.

“A lack of export opportunities for old scrap has led to a build-up of stocks at deep sea ports in recent weeks,” says another German market participant. "Another reason is low supply from Europe and that Turkish purchases of German scrap continued to decline in August.”

The limited supply of new scrap is additionally burdened by persistent semiconductor shortages, which have led to production halts in the automotive industry, he added.

Some participants in the German scrap market expect prices to continue to decline in September, but it depends on the sort. Demand for new scrap continues to be high, but other sources foresee old scrap prices to continue to fall.

Svetoslav Abrossimov Bulgaria

voda 26 augustus 2021 17:15

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Iron ore, scrap firm despite steel slump
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Seaborne iron ore prices firmed a little again on Thursday. Iron ore resisted the decline in steel futures on Thursday as the market adjusts to higher output expectations.

The Kallanish KORE 62% Fe index increased $1.49/tonne to $151.88/dry metric tonne cfr Qingdao. The Kallanish KORE 65% Fe index gained $1.07/t to $175.78/dmt cfr, and the KORE 58% Fe index appreciated $0.53/t to $120.24/dmt cfr. 170,000t of Brazilian Blend sold at $153.80/t with a laycan in 20-29 September.

On the Dalian Commodity Exchange, January 2022 iron ore settled up CNY 18.5/t at CNY 828.5/t ($127.95/t), while on the Singapore Exchange September 62% Fe futures settled up $5.28/t at $153.27/t. The same contract for 65% Fe and 58% Fe futures settled up $4.76/t at $172.59/t, and down $0.30/t at $118.55/t respectively.

Scrap prices also gained further on Thursday, while billet prices held their ground. Grade 6mm+ heavy scrap delivered to mills in the Yangtze River delta gained CNY 8/t to CNY 3,734/t. Tangshan billet prices, meanwhile, were steady at CNY 4,950/t.

Iron ore markets were not affected by a decline in steel futures. Steelmakers remain profitable and there is both an incentive to produce and margin for iron ore to increase into. Expectations for steel production and iron ore demand had fallen too far on the assumption that Chinas moves to cut production would be deep, fast and uniform. In reality these are more likely to be patchwork and to waver when economic interests are at risk. Output is therefore likely to be cut heavily, but perhaps not as deep as the market had feared. This does not mean prices cannot fall further by the end of the year, but the appears to be some support ahead of the autumn demand season.

Vale meanwhile says it has so far sold 71,000t of iron ore in eight transactions on its WeChat trading platform. This is part of its efforts to move closer to Chinese customers by blending in China and selling from stocks in ports. The eight transactions were all for Brazilian Blend Fines.

Tomas Gutierrez UK

voda 26 augustus 2021 17:16

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JSPL eyes increasing its steelmaking capacity
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Jindal Steel and Power (JSPL) has announced to propel its crude steel production capacity from 8.6 million tonnes to 15.9mt through brownfield expansion. The capital expenditure on capacity expansion will happen on the back of the strong cash flows of the company.

The company is eyeing an expansion of 1 million tonnes/year in the fiscal year 2022, followed by 3.3m t/y expansion in FY24, and 3m t/y in FY25, Kallanish notes. The current crude steel production clocked at 8.6m t/y.

JSPL also plans to expand pellets production capacity by 12m t/y to 21m t/y in its Barbil & Angul facilities.

“The 6.3mt expansion is proposed at a modest capex of $390/t, among the lowest in the industry, driven by its blast furnace and electric arc furnace,” says JSPL. “The expansion also includes investment in cost-saving projects like pellet plant, slurry pipeline.”

“The projects, which are expected to increase steel capacity by 66% and pellet by 133%, will be commissioned in a modular fashion from September 2022 to February 2025. Thereby, largely self-funding the cash flow needed for the Capex,” JSPL adds.

The company produced 2.01mt of steel in the first fiscal quarter through June (FQ1) against 1.67mt last year, while pellet production was clocked at 2.16mt against 1.87mt a year ago. Steel sales were noted at 1.61mt and pellet sales at 0.40mt.

JSPL’s net profit soared 967% on-year to INR 2,516 crore ($338.3 million) in FQ1. Ebitda rose 151% to INR 4,539 crore (see Kallanish passim).

Sayed Aameer India

voda 27 augustus 2021 07:20

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PIL in Supreme Court Unveils Duty Evasion in Iron Ore Exports

Press Trust of India reported that India’s Supreme Court has asked Indian government to file its response in two weeks to a PIL seeking a direction to the CBI to register an FIR and probe the alleged duty evasion by 61 iron exporting firms in exporting iron ore, probably pellets, to China since 2015. The bench was told that iron ore smuggling to China has been taking place as these companies have been exporting them without paying 30% export duty. A bench headed by Chief Justice NV Ramana, which was initially of the view that a fresh petition was needed to be filed after withdrawing the present one, later asked the Centre to file its counter affidavit on the PIL filed by lawyer Mr ML Sharma in his personal capacity. The bench said “This is a serious issue and if it's, true then it's a serious matter which we need to look into. Is there any truth to it?"

Besides the Union ministries and the CBI, the top court had issued notices to 61 firms including Brahmani River Rellets Ltd, Rashmi Metaliks Ltd, Jindal Saw Ltd, Essar Power (Orissa) Ltd and JSW Steel Ltd.

The PIL said under Foreign Trade (Development and Regulation) Act, 1992, tariff HS CODE NO 26011100 was prescribed to export all other kind of iron ore subject to payment of export duty at the rate of 30% but the firms were wrongly allowed to export iron ore using the tariff code 26011210 which is exclusively prescribed for KIOCL and as a result crores of rupees have been cheated by them

PIL said “The ministries of commerce and finance, customs department and 61 companies have been hand-in-glove and the firms have been smuggling iron ore to China in violation of various laws by using Tariff HS Code 26011210 instead of 26011100 and evading 30% export duties since 2015 till date”

Mr Sharma had said that the companies be prosecuted for alleged evasion of export duty by declaring wrong tariff code to export the iron ore under the Foreign Trade (Development and Regulation) Act, 1992.

Source - Strategic Research Institute

voda 27 augustus 2021 07:20

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SSAB Opts for SMS DataFactory for Data Flow in Finland & Sweden

Swedish steel producer SSAB Europe has placed an order with SMS digital covering the transnational networking of digital solutions for a stronger exchange between its four production sites in Finland and Sweden. Using the cloud based SMS DataFactory, the steel producer will benefit from an improved, holistic flow of information of all plant data across the four locations Lulea and Borlange in Sweden as well as Raahe and Hämeenlinna in Finland. The contract thus marks an important milestone for SSAB in the digitalization of its production processes on the way to the Learning Steelworks.

By means of cloud technology, SMS will make available to SSAB the uniform, cross-plant data management system within the next two years. The heart of the solution is the SMS DataFactory which has been in use by several leading steel producers under the name SMS QuinLogic PDW. It will provide SSAB a holistic view of the production locations, combined with an intelligent exchange of multi-site findings, and thus make the locations 'digital ready'.

Activities will start at the Hameenlinna site in Finland, followed by Borlänge, Raahe and finally Lulea. For linking the locations with each other, the next step will be to set up the IT and cloud infrastructures.

SMS DataFactory can be used as a data hub for seamless access to systems such as predictive plant monitoring, production planning as well as for quality and energy management. In particular, this allows improving output and expanding the product portfolio.

Source - Strategic Research Institute

voda 27 augustus 2021 07:21

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JSW Steel to Surrender Nonviable Gonua Iron Ore Mine in Odisha

Express News Service reported that JSW Steel has offered to surrender one of the four iron ore mines it bagged through e-auctions last year at steep premiums. In its August 11 surrender notice to the Director of Mines, the steelmaker has expressed its inability to operate Gonua iron ore mines in Sundargarh district due to low grade ore and logistics problems. JSW Steel wrote "We intend to surrender the entire area of Gonua iron ore mining lease under Rule-21 of Mineral Concession Rules, 2016 with effect from August 12, 2022 and we will submit the final mine closure plan before IBM. The mining operation has become economically unviable due to high shale in bottom benches, low grade mineral in top benches and serious logistic issues due to space constraint.”

Gonua iron ore block is a working mine with an estimated reserve of 118 million tonne. In an aggressive bidding, JSW Steel emerged the preferred bidder for Gonua iron ore block with an offer to pay a premium of 132%. JSW had executed the mining lease deed on June 27, 2020 and commenced mining operation on July 1, 2020. The company is learnt to have paid stamp duty of INR 110 crore for Gonua and a performance guarantee of about INR 50 crore.

Sources in the mining industries said JSW may give up its right to Jajanga iron ore block for reason similar to Gonua.

Source - Strategic Research Institute

voda 27 augustus 2021 07:23

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LIBERTY Ostrava Reports Best Quarterly Results in a Decade

Czech Republic based integrated steel producer LIBERTY Ostrava has reported a very strong set of results for the second quarter of this year with EBITDA up 35% to CZK 2.6 billion (EUR 103 million) showing an excellent improvement on the already strong Q1 results and highlights the plant’s best quarterly performance since 2011. The revenues generated were CZK 13 billion (EUR 507 million), up 26% on Q1 2021 and more than double the same quarter in 2020. The plant therefore has reported EBITDA of CZK 2.6 billion (EUR 103 million) compared to CZK 2 billion (EUR 76 million) for Q1 2021.

For the quarter ending 30 June the steelworks shipped 684,000 tonnes of steel products, up 12% on the previous quarter to make it the best production quarter since 2017. The production for the quarter was almost 80% higher than the COVID-affected second quarter last year.

The continued improvement in the production performance has been underpinned by LIBERTY Ostrava´s flexibility, which allows it to switch its product mix between Long and Flat steel products depending on market dynamics. This adaptability has meant the plant has been able to effectively maximise returns from the strong Flats market over the last six months. The steelworks expects positive progress to continue in the second half of 2021 and is in the process of increasing its production towards 2.5 million tonnes for the year, up from around 1.7 million in the Covid-19 impacted 2020. It continues to be fully booked to run at full capacity.

Source - Strategic Research Institute

voda 27 augustus 2021 07:24

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Strong Steel Prices Helping SAIL to Cut Debt

Financial Express reported that Indian state owned steel maker Steel Authority of India Limited is targeting to bring down its debt between INR 15,000- 20,000 crore in the next couple of months. SAIL Chairperson Ms Soma Mondal told reporters “We will try to bring down our net debt to Rs 15,000- 20,000 crore in a couple of months but much depended on the movement of steel prices.”

Ms Mondol said that though the flat steel prices are stable, long steel prices are improving.

At the end of the first quarter of the current fiscal SAIL’s net debt stood at INR 30,000 crore, down from INR 35,000 crore at the fiscal end.

Source - Strategic Research Institute

voda 27 augustus 2021 07:25

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Explosion at Best Steel Factory in Nepal Injures 12 Workers

Nepalese media reported that 12 workers were injured in an explosion in Best Steel Factory Plant located in Birgunj in Nepal and 7 of them are in critical condition. Police and fire brigade reached the spot and brought the fire under control and the injured were admitted to the hospital.

The injured include ten Indians from Uttar Pradesh and Bihar

The incident is under investigation.

Source - Strategic Research Institute

voda 27 augustus 2021 07:25

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Primetals to Supply Rebar Mill to Pak Steel in Pakistan

Primetals Technologies has received an order from Pak Steel to supply a bar rolling mill for the site located in the Hattar Special Economic Zone in Khyber Pakhthunkwa province of Pakistan. The new mill will enable Pak Steel to enlarge its footprint in the growing regional market of infrastructure projects. The mill will manufacture rebars with diameters ranging from 8 to 40 millimeters. The design capacity will be 450,000 tonnes per year. The billets will be directly charged in hot condition to the rolling mill, which will provide significant energy savings as well as higher metallic yield. The commissioning into operation of the mill is scheduled in the fourth quarter of 2022.

The rolling line will consist of a 6-stand roughing train in VHVHHV arrangement, a 6-stand intermediate train in HVHVHV arrangement, and a 4-stand finishing train in HHHH arrangement. All the sixteen rolling stands will be housingless Red Ring Series 5. The maximum rolling rate is 75 tons per hour and the products will be finished at a maximum rolling speed of 13 meters per second.

The downstream hot dividing shear is equipped with an optimization system to maximize the utilization of the cooling bed and guarantee the pre-set number of commercial-length bar layers per bundle. The cooling bed is 54 meters long and 8 meters wide, with the future expansion possible to a total length of 66 meters. A cold static dividing shear handles the cutting of the rolled bars to the final commercial length, and it will be followed by the handling area with automatic bundling, tying, weighing and labeling of bundles. The scope of supply also includes fluid systems and operational parts, such as stand-by Red Ring stands, guides and roll shop equipment. In addition, Primetals Technologies will provide advisory services for erection and commissioning.

In order to increase the productivity of the plant, bars with diameters between 10 and 12 millimeters will be rolled in two-slit mode, and those with diameter 8 millimeters in three-slit mode.

Since its original establishment in 1949 in Rawalpindi area, Pak Steel has been steadily growing to become one of the most prominent players of the Pakistani steel industry. Part of the family-owned Farid Holdings group, Pak Steel focuses on the manufacture of concrete reinforcement bars as well as on light structural profiles. With a current yearly production capacity of 200,000 tonnes, it is one of the leading brands and producers of rebars in Pakistan. This expansion of 450,000 tonnes will boost the yearly production capacity to 650,000 tonnes.

Source - Strategic Research Institute

voda 27 augustus 2021 07:26

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Locals Angry on Omission of Tata Steel IJmuiden from Cancer Report

Aviation Analysis reported that former municipal ombudsman in The Hague Mr Peter Heskes says that due to the controversial nature of GGD’s investigation into cancer cases in the area around Tata Steel at IJmuiden, it is true that the name of the steel company was not mentioned in the investigation report. Mr Hiskes called on the director to intervene, because no research had been done into the cause of the cancer and it was a cancer prevention and survival study.

But according to IJmondig founder Elaine Vindemut, big polluters can never be held responsible in this way. Vindemut says “I find it sad. We saw the same argument in RIVM. They say there is no mandate to look at the source of the contamination. Now this gentleman is also saying about GGD and the cause of more cancer cases. I say: Your job is to advocate for health from the locals.”

In a report last summer, the GGD concluded that lung cancer and melanoma have been relatively more common in recent years among residents of the Harlem and Egmond area. For example, lung cancer in both men and women from Beverwijk was 25% more common than the average in the rest of the Netherlands. The name of the steel company Tata Steel did not appear in the final report, while this was the case in the concepts. This was a conscious choice for GGD director Mr Bert van de Velden.

Source - Strategic Research Institute

Bijlage:

voda 27 augustus 2021 07:28

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No Scope of Revision of Dissolution of SAIL RMD HQ in Kolkata

PTI reported that India’s Steel Minister Mr Ram Chandra Prasad Singh announced that dissolution of Steel Authority of India Raw Material Division headquarters in Kolkata is complete and there is no scope of revision, putting an end to hopes of a reversal of the decision as sought by the West Bengal government. Mr Singh told "It is part of the restructuring process which the SAIL board has taken up. And now the process of shifting is complete including the manpower. So now, there is no scope of reviewing the decision.”

The SAIL board gave its nod to the restructuring programme a few months ago. Control of the RMD's mines would be transferred to Rourkela Steel Plant in Odisha and Bokaro Steel Plant in Jharkhand depending on their location. SAIL is likely to save around INR 40 crore a year

It had been decided that non-contractual employees at the RMD headquarters would be shifted to Rourkela and Bokaro, but there was apprehension that contractual workers would lose their jobs.

Source - Strategic Research Institute

voda 27 augustus 2021 07:29

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Pakistan Imposes AD Duty on CR from Korea, Vietnam, Taiwan & EU

Pakistan's National Tariff Commission has imposed a provisional antidumping duty on imports of cold rolled coils and sheets originating from South Korea, Vietnam, Taiwan and EU. The duty rates amount to 13.24%, 17.25%, 6.18% and 6.5% respectively. The duty will remain in place for four months starting from August 23, 2021. Within 180 days, the NTC will issue a final determination on the matter.

Products under investigation are flat rolled products of iron or non-alloy steel of a width of 600 mm or more, cold reduced, not clad, plated or coated, of prime and secondary quality, of a thickness ranging from 0.15 mm to 3.00 mm in rolls or slit to length sheets, excluding CRC and CR sheets used in auto skins & auto grade.

The products in question are classified under Pakistan Customs Tariff heading numbers 7209.1510, 7209.1590, 7209.1610, 7209.1690, 7209.1710, 7209.1790, 7209.1810, 7209.1891, 7209.1899, 7209.2510, 7209.2590, 7209.2610, 7209.2690, 7209.2710, 7209.2790, 7209.2810. and 7209.2890.

The investigation covered the period from October 1, 2019 to September 30, 2020.

Antidumping duty on CR imports for following countries already exists

Canada - 13.94%

Russia – 13.94%

China – 18.92%

Ukraine - 19.04%

Source - Strategic Research Institute

voda 27 augustus 2021 07:29

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TMK Announces Strong Results for Q2 & H1 of 2021

Russian leader in the production of steel pipes TMK has announces results of operations for the six months ended June 30, 2021. TMK CEO Mr Igor Korytko said “TMK demonstrated strong results in the first half and second quarter of 2021, showing strong growth in revenue and EBITDA compared to the previous quarter and the first half of last year. This was facilitated by the improved economic situation in key markets for TMK, as well as the implementation of a strategic acquisition of the ChTPZ Group, as a result of which we strengthened our leading position in the Russian market, expanded our product portfolio and optimized costs. We expect an improvement in financial performance over 2021 due to stable demand for our high-tech products in the Russian market amid increasing complexity of hydrocarbon production, as well as a further recovery in activity in key export markets. "

Highlights

Sales in April-June 2021

Seamless pipes – 853KT up by 57% QoQ

Welded pipes - 277853KT up by 73% QoQ

Total sales - 1130853KT up by 60% QoQ

Sales in January-June 2021

Seamless pipes - 1398853KT up by 33% YoY

Welded pipes - 437853KT up by 23% YoY

Total sales - 1835853KT up by 31% YoY

Revenue for the 2nd quarter of 2021 increased by 68% compared to the previous quarter and amounted to 109.2 billion rubles, against the background of an increase in sales due to the results of the ChTPZ Group enterprises and an increase in product prices. Revenue in the 1st half of 2021 increased by 56% compared to the same period last year to RUB 174.3 billion. due to the gradual recovery of economic activity in key markets and segments of the Group, as well as due to the consolidation of the results of the enterprises of the ChTPZ Group.

Adjusted EBITDA in the 2nd quarter of 2021 increased by 64% compared to the previous quarter and amounted to RUB 14.1 billion mainly due to the consolidation of the results of the enterprises of the ChTPZ Group. Adjusted EBITDA in the 1st half of 2021 amounted to RUB 22.7 billion, an increase of 11% compared to the same period last year, due to the consolidation of the results of the ChTPZ Group, which compensated for the sharp increase in raw material prices in the 1st m half of 2021

In June, ChTPZ Pipe Service signed a three-year contract with Udmurtneft, operated by Rosneft and KNHK Sinopek, for the maintenance of tubing, under which it will repair and supply more than 170 thousand tubing , which will account for about 50% of the region's market.

In July, the ETERNO enterprise, which is part of TMK, manufactured and delivered to the Aksu Ferroalloy Plant in Republic of Kazakhstan 15 steel-pouring ladles of the ETERNO INGENIUM product line, made of low-alloy structural steel.

In June, TMK decided to allocate more than RUB 500 million for the modernization of equipment for heat treatment of pipes at the Pervouralsk New Pipe Plant, which will allow the company to reduce resource consumption and expand the range of high-tech products.

During 2021, PNTZ also plans to upgrade two furnaces in the pipe-drawing shops of the enterprise. Modernization makes it possible to produce new types of pipes, including for the aviation, space and automotive industries, as well as consume 1.5-2 times less protective and natural gas, which will increase the environmental performance of production and give a significant economic effect.

In July, TMK launched an investment project to modernize the electric steel-making production at the Volzhsky Pipe Plant. The company will allocate RUB 1.5 billion for technological re-equipment, which will allow the company to produce new corrosion-resistant and stainless steel grades used in various fields of mechanical engineering, as well as steel for the production of pipes for operation in aggressive environments. The renovation of the workshop is scheduled to be completed in the second half of 2022.

Source - Strategic Research Institute

voda 27 augustus 2021 07:30

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Myanmar Junta to Reopen Myungyan Based Steel Mill

Myanmar Now reported that Myanmar’s military council is attempting to resume operations at a steel mill in Mandalay Region after production was suspended by the National League for Democracy government due to heavy debt owed to China concerning the project and mounting losses. Industry ministry has been instructed by coup leader Min Aung Hlaing to restart operations at the mill and work at the steel mill, located in Myingyan, will commence as soon as possible

The Myanmar Economic Corporation, under military control, initially established the steel mill project with the assistance of a EUR 1.1 billion loan from the state-owned China Development Bank. The loan was granted in 2005, when Myanmar was under another military dictatorship headed by the State Peace and Development Council. MEC handed the steel mill over to the Ministry of Industry in 2012 after the project failed to complete even the first phase of project implementation, causing financial losses to accumulate in the years that followed. The mill’s lack of profitability during the five-year period from 2012 to 2017 caused it to lose more than 130 billion kyat (EUR 65 million) in total

In 2017, the NLD formally suspended a total of 24 state-owned industrial projects including the Myingyan steel mill due to sustained heavy losses.

Source - Strategic Research Institute

voda 27 augustus 2021 07:33

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Vedanta ESL Steel Registers Massive Growth Since 2018

The Pioneer reported that with its rapid expansion and use of advanced technology, Vedanta Group ESL Steel Limited has reshaped the landscape. ESL came into existence on 31 March 2018 and during the financial year 2018-19, ESL’s steel production jumped to 1.2 million tonnes, which was a 17% increase on a year-on-year basis, while the EBITDA stood at INR 791 crore. The steel major improved operational efficiencies, reducing coke rate at blast furnaces 2 and 3 by around 3% and 7% year-on-year, optimising coal mix and iron ore blending, and improving finishing mill yields from 95.9% in 2018 to 96.7 in 2019. During FY 19, hot metal production reached 1.5 million tonne

The second year of ESL saw redesigned operations and record output. The company’s EBITDA margin increased from USD 53 per tonne in FY2018 to USD 112 per tonne in the fourth quarter of FY19.

Even during the pandemic period in FY20, ESL’s annual steel production stood at 1.23 million tonnes, up by a 4% YoY and witnessed a robust margin of USD 127 per tonne. It also brought down the production cost by 9%, from USD 457 per tonne to USD 418 per ton in FY 2020.

Despite frequent COVID-19 lockdown(s), the annual steel production in the current fiscal climbed to 1.19 million tonnes, while the EBITDA stood at USD 131 per tonne. Additionally, ESL achieved its lowest ever cost during the acquisition, resulting in a higher EBITDA margin vis-à-vis the previous period.

Source - Strategic Research Institute

voda 27 augustus 2021 07:33

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Strong Return to Profit for Steel & Tube in New Zealand

New Zealand based Steel & Tube Holdings Limited has reported its audited results for the 12 months ended 30 June 2021. Financial performance has significantly improved versus the prior year, with positive economic activity driving increasing demand for steel across a number of sectors and the execution of strategic initiatives delivering significant structural cost reductions. Revenue was up 15% to NZD 480.0 million, EBIT significantly improved to NZD 21.8 million with normalised EBIT up from NZD 0.4 million in FY20 to NZD 19.0 million. The company had a strong return to profitability with net profit after tax of NZD 16.1 million.

Steel & Tube CEO Mr Mark Malpass said “FY21 was a challenging time for many businesses and communities and we are incredibly proud of our people for standing up supporting our customers and delivering a strong result. Economic activity increased steadily across the year, with a strong recovery in residential construction and infrastructure activity, an uplift in commercial tenders and more recent growth in manufacturing. We are now seeing the benefits of our strategic initiatives and particularly our investment in our people and digital technology. We have seen improvements in all areas, with volumes, revenue and margins recovering across the year and a strong pipeline of secured work. Customer service and delivery have been a priority and the target of much of our digital investment as we implement an omni-channel platform that delivers the optimal experience for our customers. Significant network changes were executed late in FY20 and we now have a national presence that has been optimised to ensure customer access to our wide range of products while also achieving significant underlying cost benefits. While we see continued efficiency opportunities, the network consolidation programme is largely complete.”

He added “Supply chain management has also been an increased focus, with the establishment of the new role of GM Supply Chain & Distribution Centres early in FY21. We increased fast moving inventory in response to current global supply chain and capacity issues while at the same time reducing aged inventory. We are using advanced data analytics to support inventory traceability and pricing governance and controls.”

Steel & Tube operates across two divisions, Distribution and Infrastructure.

Distribution has performed well with growth in sales and gross margins while operating costs have reduced. We are closely monitoring and responding to pricing pressures driven by global commodity pricing, shipping and port costs. Inventory has been optimised, aided by technology, to ensure that high demand products are available and priced appropriately. Our national network, realigned sales team and Customer Excellence Centre are delivering improved customer service and experience.

Infrastructure volumes increased with gross margin improvements from the cost out programme being partially offset with competitive pricing pressure in some areas. Increased activity has been seen in 2H21 as infrastructure and large commercial projects come back on stream. Steel & Tube is well positioned as a large scale, reliable and trusted provider of choice.

Outlook - The focus for FY22 remains on customer delivery, growing sales in attractive segments and continued gross margin improvement. Forward market indicators point to sustained activity levels and there is a positive market backdrop across Steel & Tube’s diversified market positions – manufacturing has been picking up, rural is performing well, there is strength in residential construction and infrastructure, and tenders are now coming through in the commercial space. The company has a strong pipeline of secured contract work and has identified positive growth opportunities in a range of sectors and is well positioned to take advantage of these.

Source - Strategic Research Institute

voda 27 augustus 2021 07:34

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Friedman Industries Results Lifted by Rise in Steel Prices

Friedman Industries Inc has posted its most profitable quarter in its history boosted by rising steel prices. First-quarter profits were USD 11.3 million on sales of USD 65.9 million. Friedman shares have more than doubled so far this year. Results for the 2021 quarter were positively impacted by strong margins primarily associated with a historic rise in steel prices. The increase in sales was driven by an increase in the average selling price associated with higher hot-rolled steel prices and an increase in sales volume. "Operating results for the 2021 quarter benefitted from a significant increase in steel prices and associated improvement in our margins."

Friedman Industries Chief Executive Mr Michael Taylor said "Hot-rolled steel prices for the 2021 quarter were approximately 200% higher than prices for the 2020 quarter and securing steel to support our customers remained a critical focus. "Prior efforts to expand our supply chain options, combined with our team's excellent work in the quarter to source steel in a supply tight market, have allowed us to be the consistent supplier our customers expect and to capture new customer opportunities."

Hot-rolled steel prices have risen approximately 10% since June 30, 2021 and the company expects prices will continue to rise through September 30, 2021.

Source - Strategic Research Institute

voda 27 augustus 2021 08:04

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Severstal supplies LDP to Greece
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Russian vertically-integrated steelmaker Severstal has completed delivery of a first consignment of large-diameter pipe (LDP) to Greece.

The lot containing LDP - with three external layers of polyethelene coating and meeting the DIN 30670 standard and with internal coating complying with AWWA C-210 standard - were delivered by truck directly from the company's Izhora Pipe plant in St. Petersburg. The delivery method - directly to the customer's warehouse - was interesting, as the company continues to expand its LDP sales range, which already includes many European destinations such as Bulgaria, Poland, Slovakia and Netherlands, Maksim Starikov, deputy sales director for the firm's energy sector notes.

2020 saw Severstal significantly expanding its LDP export pool, with addition of Egypt, the USA, Bangladesh and UK, followed by Peru, Bulgaria and Brazil in 2021. The firm continues to develop its pipe and large diameter pipe exports to the Middle East too, aiming to start deliveries this year (see Kallanish passim).

Demand for LDP in Russia and the EAEU is rebounding, and is expected to gain around 15% to 1.56 million tonnes in 2021, and another 61% in 2022 to 2.52mt.

Katya Ourakova UK

voda 27 augustus 2021 08:05

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Residential sales rise in the US during July
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Sales of new single-family houses in the US rose slightly in July from the prior month, Kallanish learns from data gathered by the US Census Bureau and the US Department of Housing and Urban Development.

In July, sales of new single-family houses in the US were at a seasonally adjusted rate of 708,000 units. Sales for the month were up by 1% from June's revised sales rate of 701,000 units.

In an on-year comparison, sales of new single-family houses remains down 27.2% below July 2020's estimate rate of 972,000 units.

The seasonally adjusted estimate of new houses available for sale at the end of July was 367,000 units, representing a supply of 6.2 months at the current home sales rate.

New residential sales is an economic indicator utilised by the US Census Bureau to help gauge construction activity.

Zach Johnson USA

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