Eurobench.com

voda 3 december 2014 16:51

0

United States to investigate potential steel dumping

NWI Times reported that the federal government will investigate whether Korea and Turkey have been dumping subsidized welded line pipe in the United States in an effort to undercut domestic producers.

The US International Trade Commission voted 6-0 last week to investigate an estimated USD 601 million in annual Korean and Turkish imports of carbon and alloy welded API line pipe, which is used in oil and gas pipelines. The agency will look into whether the steel products are being sold at less than fair value, if it's hurting domestic steelmakers and if duties should be imposed.

US Rep. Pete Visclosky, D-Ind said that "I applaud the International Trade Commission for deciding to investigate illegal imports of steel pipe from Korea and Turkey. We must continue to do more to protect American manufacturing jobs."

US steelmakers and the United Steelworkers Union, which represents thousands of workers in Northwest Indiana, filed a complaint in October.

Mr Leo Gerard President of USW said that “The foreign competitors were attempting to squeeze US businesses out of one of the fastest growing domestic markets for steel, that imports threatened to kill good-paying jobs and that domestic steelmakers deserved a level playing field, without anyone benefiting from government subsidies. The USW continues to stand up for American jobs by fighting illegal trade. Our members and American manufacturers deserve a level playing field free from distorting subsidies and unfairly dumped welded pipe."

Mr Gerard said that USW's petition alleges Korea's dumping margins are as high as 221% and Turkey's are as high as 16%. The energy boom we are experiencing in the United States should benefit domestic workers in all industries throughout the oil and gas supply chain. Stopping unfair trade practices is absolutely essential if we are going to revitalize our manufacturing sector.

Source – NWI Times

voda 3 december 2014 16:53

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Iron ore prices below USD 70 per tonne CFR China remain bearish

According to the latest information, price of iron ore on Tuesday has given up some of its recent gains as worries about Chinese growth continue

However, the iron ore future contracts at Dalian exchange rose by CNY 4 per tonne to CNY 482 level while the one at Singapore SGX rose by USD 0.64 to USD 69.61 per tonne on Tuesday

It seems that buying activity by Chinese steel mills simulated by sub USD 70 levels and whiff of rate cut positivity remained limited keeping iron ore prices in natural course amid huge oversupply

The YoY price collapse of almost 50% has not only made small iron ore miners with high production costs across the globe to bite dirt but also put the mining giants in issuing statements frequently to keep investor confidence intact.

Rio Tinto expects to remain the lowest cost iron ore supplier to China and therefore to be least affected by a slump in prices of the material, dismissing rival BHP Billiton's threat to displace it in the ranking. Mr Andrew Harding told reporters in London that "We already are doing better. We’ll continue to stay at the bottom-end of the cost curve. It’s the best place to be. You always feel for a business that is shutting down but ... my task is to make returns for shareholders. People who can’t make money and are losing cash, shut down... people at the bottom end of the cost curve are going to make a lot of money, and that is the position I am in."

BHPB in October vowed to overtake Rio as the world's cheapest supplier to China, slashing production costs to less than USD 20 a tonne in the medium
cash cost of USD 20.40 in the first half of 2014. Rio is aiming to cut its cost for iron ore delivered to China, including transport, to USD 35.50 a tonne by 2020 from USD 40. That would imply medium term cash costs considerably lower than USD 20 on the same basis as BHP

Source - Strategic Research Institute

voda 3 december 2014 16:55

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Vale cut Dec iron ore discount to Chinese steel mills

Vale has narrowed the discount for its December loading SSFT and SSFG iron ore products to USD 3.5 per DMT from November's USD 4 per DMT discount, but continue to offer a cut of 15 dollars off Index for SHST product, customers of the miner told SteelHome December 01.

Source - www.steelhome.cn/en
China steel information centre and industry database

voda 3 december 2014 16:57

0

BEA & ArcelorMittal Algeria ink USD 600 million loan agreements

All Africa reported that Exterior Bank of Algeria and Arcelor Mittal Algeria signed in Algiers two loan agreements, totalling USD600 million, to finance an investment plan meant for El Hadjar steel complex in Annaba.

Signed in the presence of Minister of Industry and Mines Abdessalem Bouchouareb, the loan agreements are intended to financer a large section of the complex's modernization and development plan, aimed at raising the plant's production capacity from 300,000 tonnes per year now to 2.2 million tonnes per year in 2017.

Mr Hasnaoui Cheboub chairman of the group's board said that “USD 720 million El Hadjar investment and development plan will be financed up to USD 600 million by the BEA, through two credits and USD 120 million by the two shareholders ArcelorMittal and state own steel group Sider.”

Mr Hasnaoui said that “World's steel leader ArcelorMittal, which holds a 49% share of the complex, will contribute USD84 million while Sider is due to participate with USD 36 million.

Source – All Africa

voda 3 december 2014 16:58

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EPA power plant proposal could increase electricity costs for steelmakers - AISI

The American Iron and Steel Institute announced that the Environmental Protection Agency’s proposed power plan could raise electricity costs, damage competitiveness and hurt American steel jobs.

Mr Thomas J Gibson president and CEO AISI said that “The EPA’s plan to further regulate electricity from power plants may lead to higher costs of electricity to large industrial customers like steel, while potentially lessening the quality and reliability of the electric supply that is essential for our industry to operate and succeed. In addition, the plan could put steel producers in the US at a disadvantage against competitors in other nations that generally have higher rates of greenhouse gas emissions, and some of which benefit from subsidized energy costs. Such a result would not only be detrimental to the domestic steel industry and its employees, but to the larger global environment.”

Mr Gibson said that in its proposal, EPA indicates that their plan would cause nationwide electricity prices to increase between six and seven percent. He said this electricity economic impact will be exacerbated for the steel industry due to the regional differences in current fuel mix and the cost to switch to other fuels for the generation of electricity.

He said that “EPA’s plan will have a disproportionate impact on coal-fired utilities, many of which are concentrated in areas where steel is produced. Industrial customers, especially steel producers, will be charged to offset the cost of replacing coal capacity with other sources including the cost of new transmission infrastructure. Coupled with the global competitiveness challenges this plan presents, implementation of this plan would hit the steel industry hard.”

Source – Strategic Research Institute

voda 3 december 2014 17:00

0

ArcelorMittal SA to hand over environmental plan to activist group

Reuters reported that Arcelormittal SA will not challenge an appeal court ruling that it must hand over documents related to its largest steel plant to an environmental activist group.

The company said that it had initially refused to give the Vaal Environmental Justice Alliance its assessment of the Vanderbijlpark plant’s effect on the area and planned remedial action because it was an internal working document and had become irrelevant as laws changed over the years.

Having lost its appeal, the steel producer said it would send the documents within the required 14 day period.

ArcelorMittal SA had spent about ZAR 1.5 billion over the past five years on environmental activities at two of its plants.

Source – Reuters

voda 3 december 2014 17:02

0

Maanshan's export of steel products up 71.7pct in Jan-Oct

According to customs of Maanshan city, Maanshan exported 0.633 million tonnes of steel products, representing an increase of 71.7% over the same period of last year, with total sales revenue increased 62.1% to CNY 2.42 billion which accounting for 38.3% of the total export value of the city.

Source - www.steelhome.cn/en
China steel information centre and industry database

voda 3 december 2014 17:14

0

Japan's scrap exports up in Oct

Japan’s scrap exports rose by 3.5% in October compared with last month, hitting 585,000 tonnes.

The figure was 16.2% higher compared to the same month of last year. Among them, South Korea was the main export destination, total exports reached 268,000 tonnes down by 8.2% YoY.

Meanwhile, Japanese scrap export in the first ten months reached a total of 6.16 million tonnes down by 12.2% compared with same period a year earlier.

Source - www.yieh.com

voda 3 december 2014 17:17

0

Ja, ja.... :-)

Iron ore prices could stay depressed for 10 years - Analyst

The Australian reported that a prominent Chinese fund manager has grimly forecast that the global iron ore price could remain under pressure for 10 years as oversupply continues to hit the market and the Chinese residential property market slumps.

Mr Liang Ruian VP of Shanghai Jianfeng believes prices could slide below USD 60 per tonne within the next year and could even fall to as low as USD 50 per tonne, with major consequences for miners around the world.

Mr Liang, a well known fund manager in Shanghai, said that “The price of iron ore would be heavily affected by the performance of the domestic Chinese real estate market. About 30% of China’s steel output is used in residential development, which is forecast to remain flat in the next few years after a surge following the global financial crisis. It is estimated China now has a nationwide inventory of housing to last up to three years.”

He said that “I am pessimistic about the iron ore price because I see the stagnant prospects of the Chinese real estate market which is going to have devastating effects for the steel industry. The inventory of housing is up to a couple of years, while in China the rapid development of the e-commerce market is having a big impact on the sales and rents for the commercial real estate market. I think the golden ten years that we have had in the real estate market in China is over. The crash of the real estate market means the crash of the steel market.”

Mr Liang said that “Given the situation we are facing with real estate in China plus the oversupply caused by foreign producers’ expansion of production, I can say in 2015 the iron ore price will hardly be above USD 60 per tonne. I’m worried that it could be even closer to USD 50 per tonne. I don’t think we will see a bull market for iron ore in the next 10 years. There might be some bounces in the price but I think they will only be small.”

Source - The Australian

voda 3 december 2014 18:02

0

Thanks Blackrok(je)

New York - Op 2014-12-02 herhalen de analisten van Sanford C. Bernstein & Co hun koopadvies voor het staalconcern ArcelorMittal (ISIN: LU0323134006 / Mnemo: MT). Het 12-maands koersdoel wordt neerwaarts bijgesteld van 31.0 EUR naar 13.85 EUR.
Lees meer via www.analist.nl/advies/161764/sanford-...

Ze waren even in winterslaap, maar ze doen weer mee

[verwijderd] 3 december 2014 18:05

0

quote:
Blackrock(je) schreef op 3 december 2014 18:02:
BRIEF-ArcelorMittal South Africa's Newcastle Works blast furnace resumes normal production

Dec 3 (Reuters) - Arcelormittal South Africa Ltd

* ArcelorMittal South Africa's Newcastle Works blast furnace resumes normal production

* Commissioning of Newcastle Works has been successfully completed and that steel is being produced

* Production backlog orders are being immediately pioritised to ensure that these are cleared by end of Dec 2014, all domestic demands from month of Jan 2015 onwards will be met

* Project will serve as a major cash injection into Newcastle, Northern Kwazulu- Natal and KZN province as a whole.

[verwijderd] 3 december 2014 18:08

0

www.americanbankingnews.com/2014/12/0...

ArcelorMittal SA (EPA:MT) has received a “BB+” credit rating from Morningstar. The firm’s “BB+” rating suggests that the company is an above-average default risk. They also gave their stock a four star rating.

voda 4 december 2014 16:46

0

Steel ministry seeks relaxed lending rules for Indian steel makers

Economic Times reported that the Indian steel ministry has sought relaxation of lending rules for steelmakers and restructuring of their loans, in line with the power ministry's demand for the industry under its watch as both sectors go through difficult phase.

In a letter to Mr Hasmukh Adhia, Financial Services Secretary, the steel ministry said that it is imperative that the financial stress of existing steel manufactures be alleviated.

The ministry in to the letter said that steel manufactures were finding it difficult to operate plants profitably and were unlikely to take up new capital expansion project, even as the country is aiming to increase crude steel production to 300 million tonnes by 2025-26. India's current production is around 70 million tonnes.

The key demands include restructuring of loans and longer payment tenure for those companies whose projects have been affected due to cancelation of coal mining licences.

A government official said that "The steel ministry has sought similar relaxations which are being discussed for the power sector."

Source – Economic Times

voda 4 december 2014 16:48

0

Landmark week for Italian steel sector

Week 49 shall be remembered by Italian steel sector players as historic period with significant progress happening on resolution of long lasting troubles of three major steel mills – Ilva, Lucchini and AST Terni

1. Italian government has given the green light to Algerian conglomerate Cevital’s proposal of last week to acquire steelmaker Lucchini's site in Piombino. While the Italian Prime Minister Mr Matteo Renzi, during his today official visit in Algeria, has blessed together with the Algerian Prime Minister Abdelmalek Sellal, the acquisition of Lucchini Piombino by Cevital. At the same time the Italian Ministry of Economic Development has issued on official note where is confirming to have authorized the Commissar Mr Pietro Nardi to accept the offer of Cevital.

Cevital will therefore acquire Lucchini Piombino (Steel Mill), Lucchini Services and Vertek Piombino (drawing, peeling and other finishing operations on wire rod and carbon bars produced by the Steel Mill), as well as the 69.27% of GSI Lucchini. All workers will keep their jobs.

The project of Cevital is including the realization of 2 EAF and other intervention in the steel mill, as well as operations in the agro food field for a total investment amount of about EUR 400 million.

2. ThyssenKrupp and the trade unions for AST Terni, FIM, FIOM, UILM, FISMIC and UGL, signed a deal to save troubled AST steelmaker in the Umbrian town of Terni, averting announced layoffs. Labor and management have signed on to a government brokered four year development and restructuring plan.

According to the agreement there will not be any dismissal of workers except for those that will voluntary leave the job being close to the pension and that will receive incentives.

The two furnaces will remain in full function with guaranteed production of at least one million tonnes of steel

3. The Italian government on Sunday has decided to intervene in the Ilva steel plant impasse and nationalize the former Riva company. A per available information, the government’s intervention would last 2 to 3 years, the time necessary to solve the environmental issue, to enhance the necessary investments and re-finance the whole company. Then the company would be put again in the market, in order to attract best possible offers from private investors.

Italian Prime Minister Mr Matteo Renzi said in an interview published in the daily La Repubblica that "We could put the company back on its feet in two or three years, protect jobs, protect the environment and then put it back on the market. He would rather see the steel plant in private hands, but if no solution was found then I prefer intervening directly for a few years".

The opinion is that this should be the right decision.

The alternative would be to accept the proposal of ArcelorMittal and Marcegaglia that will be forcedly poor, considering the actual situation of the iMll aggravated by environmental troubles and consequent sanctions, by huge debts and labor conflicts, with the possible perspective of being only exploited without any real investment. ArcelorMittal and Italy's Marcegaglia said earlier last week they had submitted a non bidding offer to acquire Ilva's operations. Their terms of the offer include a series of conditions, including a 30 day deadline for acceptance. The bid is being examined by Ilva's special commissioner.

The Ilva site at Taranto in the Puglia region of southern Italy has been under special government administration since last year after its owners were accused of failing to contain toxic emissions. The plant employs 16,000 workers and has the biggest output capacity of any plant in Europe. Ilva's Taranto plant is currently producing about 20,000 tonnes of steel per day, or about 7.0 million metric tonnes per year, compared with an output of 6.3 million tonnes in 2013 and 8.3 million metric tonnes in 2012. The company is also looking at the option of reducing working hours for a third of workers or 3,500 employees at the Taranto plant, in a bid to save money.

Source – Strategic Research Institute

voda 4 december 2014 16:50

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Chinese steel imports confusing buyers in Europe - EUROFER

Mr Axel Eggert director of EUROFER said that “Steel supplied on the EU market by European steel producers complies with the European regulations and standards. Steel made in Europe means reliability in trade, stability of properties during processing and safety in the use of the material. This is not guaranteed in the case of Chinese steel imported in the EU, notably imports of wire rod, rebar and bar, as well as hot rolled coil and heavy plate.”

Mr Axel Eggert said that “Not only does China promote exports of its excess steel production by targeted product tax advantages, but Chinese steel qualities also confuse the markets as Chinese producers exploit the export tax regime. The EU market surveillance authorities are now required to eliminate the risk of misleading use of the CE mark. Steel processors must be protected from being exposed to wrongfully declared qualities to the risk of serious economic disadvantages.”

The Chinese government promotes exports of alloyed steels with tax rebates of 9% to 13% on the general export tax of 17%. To get the most tax beneficial classification as alloyed steels, Chinese steel producers add cheap alloy boron agent to steels specified by the customer as non alloy qualities. Although the boron quantities are up to twice as high as permitted, Chinese steels are marketed in the EU as unalloyed steels. Boron in steel improves the uniformity of the hardness of the steel. But if weld ability and elasticity are required, typically for unalloyed steel, a higher share of boron can be particularly harmful including welding cracks.

China’s steel exports are estimated to reach at least 85 million tonnes this year, up by 43% YoY. Chinese exports of steel products in which boron is typically added represent more than 50 percent of the total Chinese export volume.

Source – Strategic Research Institute

voda 4 december 2014 16:51

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Dalian iron ore drops further on Wednesday

Reuters reported that Chinese steel and iron ore futures dropped amid worries steel demand in the world's top consumer may remain weak as construction activity slows during winter.

The May iron ore contract on the Dalian Commodity Exchange slipped 0.6 percent to CNY 476 a tonne.

The most traded rebar for May delivery on the Shanghai Futures Exchange was down 0.6% at CNY 2,505 per tonne by midday after falling to as low as CNY 2,492.

Source – Reuters

voda 4 december 2014 16:53

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Vale update on capital expenditure budget for 2015

Vale announced that its Board of Directors approved the investment budget for 2015, with capital expenditures of USD 6.358 billion for project execution and USD 3.809 billion dedicated to sustaining existing operations. This is the fourth consecutive year in which Vale reduces its capital expenditures, maintaining capital discipline and focusing only on world class projects.

Project execution;
Our main growth initiatives in iron ore are responsible for 71% of the USD 6.358 billion budgeted for project execution in 2015. These initiatives include the:
(a) Expansion of our integrated iron ore operations in Carajas (USD 3.696 billion) through the S11D and CLN S11D projects.
(b) Completion of the Itabirites projects for the partial replacement of capacity, increase in production and quality improvement in the iron ore production from the Southern and Southeastern Systems (USD 659 million), including the Conceicao Itabiritos II, Vargem Grande Itabiritos and Cauê Itabiritos projects.

Sustaining capital;
The sustaining capital budget for 2015 totals USD 3.809 billion. Fundamentally, it will provide funding for five classes of initiatives:
(i) operations, mainly equipment replacement;
(ii) building and expanding waste dumps and tailings dams;
(iii) health & safety;
(iv) corporate social responsibility (CSR) and
(v) administrative and others.

Keeping sustaining expenditures under control is a key priority and the budget for 2015 represents a decrease of 16.2% in relation to last year’s budget.

The budget for the ferrous minerals business is USD 1.929 billion and will be mainly directed to operations (USD 1.203 billion), health & safety (USD 344 million), waste dumps and tailings dams (USD 246 million), CSR (USD 108 million) and others (USD 28 million). Base metals sustaining investments will total USD 1.388 billion, composed primarily of operations (USD 1.039 billion), waste dumps and tailings dams (USD 70 million), health & safety (USD 56 million), CSR (USD 193 million), which includes USD 61 million for the clean AER project and others (USD 31 million).

Expenditures in sustaining the fertilizers business will be USD 290 million, mainly comprised of investments in operations (USD 198 million), CSR (USD 48 million), waste dumps and tailings dams (USD 16 million), health & safety (USD 12 million) and others (USD 16 million). The coal business budget of USD 78 million is mostly composed of USD 52 million for operations.

Source – Strategic Research Institute

voda 4 december 2014 16:54

0

Updates on weekly raw steel production in USA

In the week ending November 29th 2014, domestic raw steel production was 1,835,000 net tonnes while the capability utilization rate was 76.3%. Production was 1,826,000 net tonnes in the week ending November 29th 2013, while the capability utilization then was 76.2%.

The current week production represents a 0.5% increase from the same period in the previous year. Production for the week ending November 29th 2014 is down 2.5% from the previous week ending November 22nd 2014 when production was 1,882,000 net tonnes and the rate of capability utilization was 78.2%.

Adjusted year to date production through November 29th 2014 was 88,123,000 net tons, at a capability utilization rate of 77.1%. That is up 0.5% from the 87,658,000 net tonnes during the same period last year, when the capability utilization rate was 76.9%.

Broken down by districts, here's production for the week ending November 29th 2014 in thousands of net tonnes: North East: 229; Great Lakes: 655; Midwest: 231; Southern: 634 and Western: 86 for a total of 1,835.

The Raw Steel production tonnage provided in this report is estimated. The figures are compiled from weekly production tonnage provided from 50% of the domestic producers combined with monthly production data for the remainder.

Therefore, this report should be used primarily to assess production trends. The AISI production report AIS 7, published monthly and available by subscription, provides a more detailed summary of steel production based on data supplied by companies representing over three quarters of US production capacity.

Source – Strategic Research Institute

voda 4 december 2014 16:55

0

Russian South Stream project pullout hits eastern Europe

Energy for Europe delivered securely. That was the idea behind the South Stream pipeline funded by Russia’s state gas giant Gazprom. The decision to abandon the project, announced by Mr Vladimir Putin, President of Russia, was described by one EU source as 'a lose-lose for everybody.'

The project had begun in Bulgaria in October 2013 but was suspended in June after the European Commission said it broke EU competition rules. The 930 kilometre pipeline was to have run under the Black Sea to southern and central Europe, avoiding Ukraine, another transit route for Gazprom.

The Kremlin has blamed EU obstructions for the move to halt the project.

Spiralling costs also hit construction. The budget soared by an estimated 47% and the total cost had been expected to hit EUR 32 billion.

As it avoided Ukraine, South Stream was seen as an insurance policy by Bulgaria, Hungary and Serbia, whose PM Mr Aleksandar Vucic was quoted as saying that “We are paying the price of a conflict between big powers.”

What now is in the EU action tray after the Kremlin’s move?

Ms Federica Mogherini, High Representative of the European Union for Foreign Affairs, said that “The decision that was taken, announced by Russia yesterday, tells us that it is urgent not only and not so much to diversify the routes but also the sources of energy for the European Union.”

The pipeline also fell victim to a stalling European demand for gas and plunging energy prices.

Source - www.euronews.com

[verwijderd] 4 december 2014 16:57

0

One of the largest steel companies ArcelorMittal Kryviy Rih reduced metal output by 1.3% over 11 months

www.capital.ua/en/news/36097-arcelorm...

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Volume gemiddeld	2.986.909
Volume gisteren	8.534.283

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