Eurobench.com

voda 9 februari 2015 16:57

0

JSW Steel reduces capex plans by 20pct this year

According to reports, JSW Steel has cut capex plans by 20% this year.

Report said that the company is planning to invest INR 6,000 crore for the year ending March.

Mr Seshagiri Rao, JSW steel's joint managing director and group CFO, said that all capital expenditure plans will be reviewed in May this year but added that the firm is sticking to its goal of producing 40 million tonnes of steel by 2025.

Source - India Infoline

voda 9 februari 2015 16:58

0

Output to decline from existing mines over next 5 year - CIL

State-owned CIL has projected a drop in output from the existing mines over the next 5 years even as it prepares to meet the government target of about 1 billion tonne coal production by March 2020.

A detailed note on projected Coal India Ltd production said that "It is seen that there is drop in contribution from existing mines and completed projects to the tune of 25 million tonnes (MT)."

However, the production is expected to grow from the ongoing and future projects of CIL.

It said that CIL output from the existing mines is envisaged to drop to 165.56 million tonnes by 2020 from the projected level of 190.57 MT in the current fiscal.

It added that "An exercise has been carried out to prepare a roadmap for achieving a production level of one billion tonnes coal by the year 2019-20. All the subsidiary companies were requested to identify the potential projects to achieve the desired goal."

CIL said that with the projected 925.10 MT output by 2019-20, there is a need to grow production by 418.90 MT, from the 506.20 MT expected for 2014-15. 239 projects have growth, and 185 number of units have reduction in production contribution. The net resultant growth is 418.90 MT.

It further said that the major issues for achieving the envisaged growth are grant of environment and forest clearances, land acquisition and coal evacuation. CIL, which accounts for over 80 per cent of the domestic coal production, missed its production target of 482 MT last fiscal and produced just 462 MT.

Source - PTI

voda 9 februari 2015 17:01

0

Chinese steel exports in January cross 10 million tonne again

According to data released by China's General Administration of Customs on Sunday, steel exports from China rose to a record for a fifth month while iron ore dipped by almost 10% MoM as well as YoY.

With VAT rebate cut from January 1st 2015 on export of Boron added steel, many analysts had predicted reduction of up to 30% in Chinese exports volumes in the first few months. But the all time monthly high figure of 10.29 million tonnes in January tells a different story…

Chinese steel mills have stepped up exports since September 2014
Jan'15 - 10.29 million tonnes
Dec'14 - 10.17 million tonne
Nov'14 - 9.72 million tonnes
Oct'14 - 8.55 million tonnes
Sep'14 - 8.52 million tonnes

2012 - 51.2 million tonnes (Monthly average of 4.3 million tonnes)
2013 - 57.2 million tonnes (Monthly average of 4.8 million tonnes)
2014 - 93.8 million tonnes (Monthly average of 7.9 million tonnes)

Chinese economy and steel industry has undergone radical change over last 1 year spelling devastation for global steel mills. It has changed tact from buying driven by high growth model to modulating investment driven balancing model. Chinese growth has plummeted to 7.4% lowest in the last 5 years. As per China Iron & Steel Association estimates, while China's steel output in 2014 was 822.7 million tonne, domestic steel consumption shrank 3.4% YoY to 738.3 million tonnes. According to estimates, China has got more than 1.1 billion tonne steel capacity and even at 75% capacity utilization the steel industry is left with surplus volume owing to lack of domestic demand. With near demise of property market and construction activity ebbing in China, mills are running helter skelter to liquidate volumes. Incidentally, production pruning is the last word in China owing to compelling social obligations of employment.

While the Chinese steel mills continue to focus on maximizing output rather than tackling the overcapacity, exports will continue to undercut the rest of the world. Domestic mills in China have diverted volumes to export with twin objective of liquidating surplus volume and quest for better realization. But to reach and maintain 10 million tonne + monthly export volumes, Chinese steel mills have cut their export prices drastically. The low export prices have helped Chinese steel mills to grab major volumes from major steel importing countries across the globe.

The above table shows that Chinese aggression has reached its peak during January with MoM slide in FOB prices reaching as high as 20% for HR while the yearly loss was about 30%. The tendency of Chinese steel mills to adopt such an aggressive stance on export front in last 30 days

Source - Strategic Research Institute

voda 10 februari 2015 17:11

0

Indian coal imports fall 20pct in Jan due to lower demand from steel makers

As per mjunction data, the surging trend of coal imports in recent times snapped in January as shipments fell by 20% over the previous month due to lower demand from domestic steel makers.

mjunction said that India's coal imports in January stood at 15.73 million tonne as against 19.75 million tonnes in December, 2014.

However, the January imports were 2% more than the 15.37 million tonnes imports in the same month of last year.

Of the total imports during January this year, non-coking coal was at 15.91 million tonnes compared to 15.36 million tonnes in December, led by higher demand from country's fuel-hungry power plants, which have been battling fuel scarcity for a long time now.

Indian power companies had imported 163 million tonnes stem coal out of the country's total coal imports of 210.55 million tonnes in 2014, accounting for more than 77% of imports.

However, the fall in imports of January was mainly due to lower demand from the country's steel producers.

Collectively, they imported 2.4 million tonnes coking coal during the month compared to 3.2 million tonnes in December.

Imports of metallurgical coke, which is also used by the steel firms, were down to 98,770 tonne from 1.76 lakh tonne. Petroleum coke imports also decreased to 4.78 lakh tonne from 6.9 lakh tonne in December, 2014.

mjunction said that there was no pulverised coal (PCI) imports in January as per the provisional compilation, as against 2.9 lakh tonne in the previous month.

Anthracite coal imports on the other hand rose to 52,293 tonne in January from 33,190 tonne in December 2014.

It said that India's imported coal stocks, including steam coal and coking coal at eight major and two private ports edged up 2.27% to 8.207 million tonnes in January-end against 8.025 million tonnes as on December 26th.

According to the data, non-coking coal stocks at Kolkata, Paradip, Vizag and Mundra, as on January 23rd, fell by 17% to 3.1 million tonnes from 3.8 million tonnes as on December 26. Coking coal stocks increased sharply to 3.2 million tonnes against 1.9 million tonnes.

Source - PTI

voda 10 februari 2015 17:16

0

Chinese New Year could be the trigger to sinks iron ore prices below USD 60 mark

It is reported that many mills in China have scheduled there maintenance program for 30-60 days from end January thereby obviating the need to buy iron ore immediately. Moreover mills don't need to take delivery during holiday.

As a result, Chinese market sources expect iron ore prices to slide below USD 60 per tonne before the Lunar Holiday.

China's daily crude steel output among CISA's steel mill members had declined in January 1.72 million tonnes for the first 20 days of January, or down 1.6%. It is likely to go down further during New Year holiday season

Iron ore import in January fell to 78.57 million tons, (9.5%) compared with 86.85 million a month earlier and 86.83 million in the previous year.

Source - Strategic Research Institute

voda 10 februari 2015 17:16

0

Latin America imported 8.3 million tonne of finished steel from China

In 2014, Latin America imported 8.3 million tonnes of finished steel from China at a value of USD 5,474 million. This implies an average price per ton of USD 658. During the same period, China sent to the rest of the world (ex-Latam) 76 million tons at a value of USD 53,484 million (average price per tonne USD 700).

According to the information provided by the Chinese Customs Authority, Between January and December 2014, Latin America received finished steel from China at an average price 6% lower than the rest of the world (ROW). Almost every Latin American country received Chinese finished steel at prices below the world average. Argentina and Venezuela were the only exceptions. Even though trade flow was quite limited, these countries received Chinese steel at prices markedly above the average prices for the region and for the rest of the world. Cuba also describes a similar trend, but at a not so noticeable price difference.

This Chinese procedure of reducing prices at a regular pace may reflect the existence of unfair trade practices, as Chinese domestic prices did not experience a similar decline.

Central America (that recorded import prices at an average of USD 569 per ton, 19% lower than the rest of the world average), and Peru (average price of USD 601, 14% below ROW) were the most affected destinations. They also rank 3rd and 4th among Latin American destinations for Chinese finished steel in terms of volume.

Graph 2 describes how the increase in the amount of finished steel that Latin America received from China from the beginning of 2013 to the end of 2014, is much more abrubt than the world average. During these two years, average export prices from China decreased at a similar path for both destinations (with cummulative decreases of almost 20%). However, it is worth noting that the average prices to Latin America remain below the ROW average all over the period.

Flat products to Latin America;
In 2014, flat steel products accounted for 67% of the Chinese finished steel exports to Latin America, reaching 5.5 million tonnes at a price 16% below the ROW average. The trend observed during the last two years (2013 and 2014) describes an increase of 184% in the volume of flat products shipped to Latin America. Meanwhile, the flow to the ROW increased 96%. During the same period, average price to Latin America fell 11% while average price to ROW dropped 15%.

The lowest average prices of the region were registered in Ecuador (that received flat products at an average price of USD 593 per ton, 23% below ROW average) and Peru (at an average price of USD 600, 22% below ROW average). Brazil and Chile the two main destinations for Chinese steel imports in the region- confronted prices 13% and 17% above the ROW. Among flat products, sheets and coils of other alloy steels represented 39% of the volume shipped from China to the region in 2014, reaching 2.1 million tonnes. During the last quarter of 2014, average export price to Latin America for these products was 2% higher than the price to ROW.

Long products and seamless tubes to Latin America;
In 2014, Chinese exports to Latin America of long products (27% of the finished steel received from China) registered an average price per ton of USD 558, slightly higher than ROW average (+3%). In Brazil, the largest importer, average price was 16% higher than ROW average.

Latin America received seamless tubes from China at an average price per ton of USD 1,245, 3% below the ROW average.

Source - Strategic Research Institute

voda 10 februari 2015 17:17

0

Chinese crude steel output up by 0.9pct in 2014

China Knowledge reported that China, the world's largest steel producer, saw its crude steel output increase 0.9% YoY to 822.7 million tonnes in 2014.

According to the latest statistics released by the National Development and Reform Commission, the country's output of steel products up 4.5% YoY to 1.13 billion tonnes in 2014.

China exported 93.78 million tonnes of steel products last year, up 50.5% YoY while its import of steel products hit 14.43 million tonnes, up 2.5% from a year earlier.

In the month of Dec 2014, China's steel prices continue to decrease, with the domestic composite steel price index declining 1.79 points from Nov to 84.04. The prices of 20 mm steel sheets and 1 mm cold rolled coils were at CNY 2,999 per tonne and CNY 3,898 per tonne down 15.3% and 12.2% from a year earlier, respectively.

The steel industry realized CNY 219.2 billion in profit in 2014, 15.3% less than in the previous year. The ferrous metal mining and dressing sector booked a profit of CNY 80.1 billion, down 23.9% YoY and the steel smelting and processing sector recorded profit of CNY 125.4 billion, declined 3.8% YoY.

voda 10 februari 2015 17:18

0

TATA Steel update production on Europe

The European business continued to improve its product mix with sales of differentiated products now more than a third of overall sales. This portfolio enhancement, together with lower input costs, contributed to the improved financial performance last quarter.

The company launched 22 new products in the first nine months of FY15, and has now achieved a milestone of 100 new products in its portfolio. One of the latest was Celsius 420, a new structural steel tube product that has higher yield strength but remains easy to weld and fabricate.

Further portfolio improvements to help customers succeed in their markets support the European operations? strategy to reach a sustainable financial performance.

Due diligence work on the potential sale of the Long Products Europe business to the Klesch Group continues.

1. Liquid steel production in 9M FY?15 declined to 11.26 million tonnes versus 11.51 million tonnes in 9M FY?14. Q3 FY?15 production was 3.74 million tonnes compared to 3.82 million tonnes in the previous quarter and 3.91 million tonnes in Q3 FY?14.

2. Deliveries in 9M FY?15 increased to 9.86 million tonnes versus 9.79 million tonnes in 9M FY?14. Q3 FY?15 deliveries declined to 3.31 million tonnes compared to 3.36 million tonnes in the previous quarter but increased by 4% from 3.19 million tonnes in Q3 FY?14.

3. Turnover in 9M FY?15 increased marginally to 60,341 crores from ‘60,290 crores in 9M FY?14. Q3 FY?15 turnover was' 19,399 crores compared to `20,202 crores in Q2 FY?15 and `20,709 crores in Q3 FY?14.

4. 9M FY?15 EBITDA increased by 47% to 3,231 crores from 2,191 crores in 9M FY?14. Q3 FY?15 EBITDA was also higher at 1,308 crores compared to 929 crores in the previous quarter and ‘860 crores in Q3 FY?14.

5. EBIT in 9M FY?15 improved to ‘734 crores from the loss of `142 crores in 9M FY?14. Q3 FY?15 EBIT increased to ‘485 crores compared to ‘113 crores in the previous quarter and loss of ‘2 crores in Q3 FY?14.

Source - Strategic Research Institute

voda 10 februari 2015 17:18

0

China executes iron ore giant Hanlong Group founder Mr Liu Han

China executes the head of one of world's largest iron ore manufacturer. China executes top businessman.

China executed Mr Liu Han, the founder of Hanlong Group, one of the world's leading iron ore manufacturer.

According to the South China Morning Post, Mr Liu Han was sentenced to capital punishment in May of last year. He was found guilty on 13 articles of the Criminal Code. Investigation revealed that one of the richest people in China secretly led a major criminal group that was engaged in murder, illegal casinos and arms trafficking.

According to RBC, Hanlong Group, which Mr Liu Han founded in 1997 and made it one of the largest suppliers of iron ore in the world, was fined CNY 300 million for providing false information to obtain bank loans.

Source - English.pravda.ru

voda 10 februari 2015 17:19

0

Metinvest announces operational results for Q4 and 12 M 2014

Metinvest BV announced its operational results for the Q4 and the twelve months ended 31 December 2014.

Metallurgical Division;
Hot metal production increased by 9% QoQ in 4Q 2014, as output rose by 141,000 tonnes at Azovstal and 26 thousand tonnes at Yenakiieve Steel and fell by 14,000 tonnes at Ilyich Steel. The increase was due to the resumption of production at Yenakiieve Steel on 21 October, following the complete shutdown on 13 August, and the restoration of maximum supplies of raw materials to Azovstal and Ilyich Steel.

Driven by the increase in hot metal output, crude steel production rose by 1% QOQ in 4Q 2014. Output volumes climbed by 159,000 tonnes at Azovstal and 22,000 tonnes at Yenakiieve Steel, while decreasing by 161,000 tonnes at Ilyich Steel, mainly due to hot metal being reallocated to produce merchant pig iron.

Hot metal output decreased by 20% YoY in 2014 due to a significant production decline in 2H 2014. This was the result of the complete shutdown of Yenakiieve Steel from August to October 2014 and restrictions in raw material supplies to Ilyich Steel and Azovstal in 2H 2014, following damage to railway infrastructure during the conflict in Eastern Ukraine and the destruction of a railway bridge in Mariupol in December 2014. Output fell by 842,000 tonnes at Ilyich Steel, 698,000 tonnes at Azovstal and 747,000 tonnes at Yenakiieve Steel.

The decline in hot metal output caused a significant decrease in crude steel production. Total crude steel output dropped by 26% YoY in 2014, as production fell by 1,491,000 tonnes at Ilyich Steel, 869,000 tonnes at Azovstal and 826,000 tonnes at Yenakiieve Steel.

Source - Strategic Research Institute

voda 10 februari 2015 17:21

0

Iran eyes USD 2 billion investment in seven steel projects

Iran has allotted an investment of over USD 2.263 billion on seven new steel projects.

Mr Mohammad Reza Nematzadeh, industries, mines and trade minister of Iran said that extensive measures have been taken to develop the mineral sector in the country.

Mr Nematzadeh said since a large number of projects remain incomplete the government is seeking private investment in these projects. Investors can take 60% to 80% share of the steel projects with a production capacity of 1 million tonnes.

The minister referred to the South Aluminium Project, which has remained incomplete for the past nine years and said USD 1 billion in letter of credit have been opened in five banks for the project.

Mr Nematzadeh said that steel projects need the support of Majlis and private sector, hoping that the mining sector will make a significant progress in the near future.

The minister noted that these projects have been devised to increase the country's annual steel production to 55 million tonnes adding that fruitful measures have been taken in this respect.

Source - Trade Arabia

voda 10 februari 2015 17:22

0

Chinese ports will continue to face pressure

Moody's Investors Service said that Chinese ports will continue to face pressure in throughput growth during the next two years on the back of economic rebalancing and ongoing capacity additions.

A port's location has become a more important credit factor in differentiating among the Chinese ports. Moody's expects the standalone credit quality of Chinese port operators to widen as a result.

Mr Michelle Zhang, Moody's VP and senior analyst said that "The ongoing downturn in the iron ore and coal sectors, combined with intense competition from neighbouring ports, is threatening a number of ports in north and northeast China that mainly handle commodity bulk cargo. Along with rising labour costs, these factors will pressure the profitability of Chinese port operators in the next two years.”

According to Moody's report, operating efficiency and the ability to provide comprehensive and high quality services along the supply chain will become more important to Chinese ports' standalone credit quality.

As China's growth model shifts the contribution of low value added manufacturing to domestic consumption and higher value added industries, throughput growth will progressively shift from commodities to containerised and high value goods.

Moody's said core ports in the three prosperous economic regions Pearl River Delta, Yangtze River Delta and Bohai Economic Rim are well equipped to benefit from this shift.

While overcapacity will dampen the need for capacity additions, the growth in ship size and the structural change in the cargo mix handled by Chinese ports will drive port operators to improve their infrastructure in order to remain competitive.

As such, Moody's expects that port operators will incur relatively high capex, making deleveraging unlikely over the next two years. Furthermore, Moody's noted that government support remains a key to the overall credit quality of major port companies in China.

Source - HIS Maritime360

voda 10 februari 2015 17:23

1

Australian Port Hedland ore shipments rise 30pct in Jan

Iron ore exports from Australia's Pilbara ports rose in January, driven by a 30% YoY rise at Port Hedland, amid a further 16% slide in prices.

According to Pilbara Ports Authority statistics released last week, Port Hedland shipped out 36.7 MT of ore in the month, up 8.5 MT or 30% from January last year.

Pilbara Port Authority, which now also includes Dampier, registered a total monthly throughput of 50.1M tonnes, up 19.6% YoY.

Australia now supplies 59% of China's iron ore imports. In 2014, China imported 548 MT of Australian iron ore, up 32% from the previous year.

However, while BHP Billiton and Rio Tinto remain profitable due to capital intensive mining and lower overheads, smaller miners are struggling to stay in the black.

Source - HIS Maritime360

voda 11 februari 2015 16:29

0

Vooruitblik: 'ArcelorMittal haalt doel'

WOENSDAG 11 FEBRUARI 2015, 11:43 uur | 4671 keer gelezen

AMSTERDAM (AFN) - Staalconcern ArcelorMittal heeft naar verwachting in 2014 aan zijn eigen doelstelling voor een operationeel resultaat (ebitda) van meer dan 7 miljard dollar kunnen voldoen. Dat blijkt uit een consensus van de analistenverwachtingen die het bedrijf zelf heeft gepubliceerd op de website. ArcelorMittal maakt vrijdag voorbeurs resultaten bekend.

Volgens de consensus van ArcelorMittal komt de ebitda over 2014 uit op 7,18 miljard dollar. Bij persbureau Bloomberg rekenen de marktvorsers in doorsnee op 7,3 miljard dollar.

De omzet over heel 2014 wordt door analisten bij Bloomberg gemiddeld geraamd op 80,6 miljard dollar, een stijging met 1,4 procent in vergelijking met een jaar eerder.

Bij de publicatie van de derdekwartaalcijfers sprak ArcelorMittal nog van relatief gunstige marktomstandigheden. De impact van de dalende prijs van ijzererts op de mijnbouwactiviteiten werd gecompenseerd door de verbetering op de staalmarkt, met name in Europa.

voda 11 februari 2015 16:30

0

Vooruitblik: 'Aperam poetst verlies weg'

WOENSDAG 11 FEBRUARI 2015, 10:21 uur | 2166 keer gelezen

AMSTERDAM (AFN) - Roestvrijstaalbedrijf Aperam heeft in 2014 naar verwachting het verlies van een jaar eerder weten weg te poetsen, geholpen door een aantrekkende markt en het prestatieverbeteringsprogramma. Dat blijkt uit een consensus die is samengesteld door persbureau Bloomberg. Aperam maakt donderdag nabeurs zijn resultaten bekend.

De nettowinst komt naar verwachting uit op 98 miljoen dollar, tegen een verlies van 100 miljoen dollar in 2013. Het operationeel resultaat (ebitda) zal naar verwachting een verbetering laten zien tot 519 miljoen dollar, van 279 miljoen dollar in het voorgaande jaar.

Volgens de gemiddelde analistenverwachting komt de omzet van het in Amsterdam genoteerde bedrijf over 2014 uit op ruim 5,5 miljard dollar, tegen 5,1 miljard dollar een jaar eerder. De brutomarge is naar verwachting gestegen naar 13,5 procent, van 4,2 procent in 2013.

voda 11 februari 2015 16:46

0

India consumed 3.5pct of steel against last year

Mr Sushim Banerjee DG of INSDGA in his personal capacity recently wrote for Financial Express that higher steel consumption is long believed to be the barometer of industrial growth in the country, while Indian industry has grown by 2.2% in the first eight months of the current fiscal, consumption of steel went up by 1.3% during the period.

He wrote “Taking into account the next two months, India has consumed around 3.5% more of steel against last year and, therefore, expectedly the IIP for the same period (to be known by the next month) must also reflect a higher growth. Now with the change of the base year, the inclusion of new sets of industries would lead to reporting of higher volumes of output than captured so long. Unfortunately, this growth story has a weak link that is not palatable to the growth of Indian economy.”

He added “A 3.5% growth in steel consumption was achieved through 5.3% growth in indigenous steel production for sale and 61% hike in imports of steel. The consumption growth could have been higher, but for a four times rise in inventories due to subdued demand. The rise in import volume has penetrated into the market share of a few major steel producers.

Currently, steel imports constitute around 12% of total consumption. This is approximately 4% more compared to what it was in last year. The decline in market share of major producers (SAIL, TATA, JSW, Essar, JSPL) is the direct outcome of rise in imports.

From customers' point of view, the imported steel available at a cheaper rate and otherwise satisfying the quality parameters at their end is always preferred. Industrial production deprived of the contribution from basic industries can make it up by higher output of the end products industries catered to by the customers of imported steel.

While the country collects higher customs duties by increased steel imports, it loses excise duties and other indirect tax revenues by cut in domestic steel production, lower income and employment opportunities by the people associated with it. The banks' NPAs go up due to inability of domestic producers to pay back loans in time. The Railways and road transport earn less revenue due to poor movement of raw materials and finished products, much more than increased movement of imported steel.

It is possible to attach values to each of these aspects and quantify the cost benefit analysis of higher imports of steel. Similar exercise in other countries have shown that in totality an import led consumption growth has a disastrous impact on the existing players in terms of economic margin, long-term prospects and viability.

India needs to make up its huge deficit of infrastructure, be it in rails, roads, urban facilities, ports, airways, oil and gas, irrigation or communication. The dream of 100 smart cities can be fulfilled only by strengthening the domestic industry that is capable of supplying basic ingredients in a cost-effective and efficient manner.

While Indian steel industry is genuinely seized with the threat of rising imports that is in turn facilitating the excess capacities in other steel producing countries like China, Japan, South Korea and CIS to get a regular outlet in Indian market, the industry must take care of the procurement cost at the customers' end, match the quality parameters of imports and improve other non-pricing factors.

Source - Financial Express

voda 11 februari 2015 16:46

0

Essar Steel unhappy with 11% iron ore price cut by NMDC

Business Standard reported that the 11% cut in iron ore prices for February, announced by the NMDC has not elated domestic steel makers and that they feel there is scope for further reduction.

Mr H Shivramkrishnan chief commercial officer of Essar Steel India Ltd said that "The recent reduction of iron ore fines prices by NMDC by just 11% are not in line with expectations. It is too little when compared to the drop in prices internationally (over 50% from January 2014 to current levels). Further the price reduction by private miners in Odisha is much more than that of NMDC, which are down by 45% to INR 1,800 per tonne."

NMDC, the country's largest public sector iron ore producer, has reduced ore lump prices 11% to INR 3,750 a tonne and ore fines prices 10% to INR 2,760 a tonne for February sales.

Source - Business Standard

voda 11 februari 2015 16:51

0

Rio Tinto earmarks more cost cutting for iron ore division in Australia

ABC reported that wage changes, continued hiring freezes and service contract reviews have been flagged in a leaked document outlining Rio Tinto's latest cost cutting strategy within its iron ore division.

In a memo sent to employees, Mr Andrew Harding the miner's chief executive for Iron Ore operations outlined actions the company would take to remain competitive this year.

The areas said to require urgent attention include

1. Cost-outs and capital reductions that are significantly below the existing plan

2. The renegotiation of significant service and supply contracts

3. Reflecting market conditions for employees and labour related costs

4. The extension of an immediate hiring freeze and review of organisational structures

5. Revamping of the way we schedule maintenance - by intervals and task times

6. A significant reduction in warehouse and stockpile inventories

Mr Harding said that this included renegotiation of significant service and supply contracts, a significant reduction in warehouse and stockpile inventories and a review of organisational structures. He also flagged the extension of an immediate hiring freeze, which the company introduced last year.

Mr Harding said that he will also implement quarterly reviews directly with superintendents at all iron ore sites across the country and reduce scheduled maintenance task times.

He described the agenda as a large one, but not unmanageable. The plan comes as iron ore hits record lows, with the price halving in the past 12 months.

Mr Gary Wood, The CFMEU's mining and energy secretary said he did not expect the plan to have a major impact on workers. You sort of wonder what's behind this."

Mr Wood said that "Our initial thought is it's shareholder driven, letting them know they're reacting to the market, but when you look into it, it's really just about cost cutting and being prudent in their management style."

He said that the hiring freeze may impact some contractors, but is in line with the economic climate of the resource sector. If Rio Tinto wants to increase their tonnage from 290 million to 360 million tonnes of iron ore shipped a year, they're going to need labor."

He added that "They're trying to drive down the costs and they'll do that through suppliers who will be paying the ultimate price in negotiations. You have to remember, when the price of iron ore was high, the Australian dollar was high and as the Australian dollar has gone down, the iron ore prices have gone down but at the same time Rio's production has gone up and they've become more efficient.”

A spokeswoman for Rio Tinto said that the miner was focused on maintaining market competitiveness in challenging industry conditions. For some time now our people have been pursuing cost and productivity improvements. We are constantly examining all parts of our business in order to remain strong and globally competitive.

Source - ABC

voda 11 februari 2015 16:52

0

EU steel tube output up by 2.8pct in Q3 2014 - EUROFER

EU steel tube output rose by 2.8% YoY in the Q3 of 2014.

Highlights;
1. Production rose in Q3 2014
2. Linepipe/OCTG market outlook clouded by low oil price and termination Southstream project
3. Other tube demand to improve
4. Slight rise tube output in 2015/16.

Similar to the activity trends seen in the H1 the performance at the country level diverged significantly in a reflection of product range, the balance between domestic and export end user segments as well as the exposure to international competition. Output in France and Spain and Sweden fell sharply, whereas particularly in Poland but also in Germany, Italy, the UK and Sweden production activity improved.

Market conditions are expected to have deteriorated in the final quarter of last year; this can be primarily attributed to new headwinds in the line pipe market.

Whereas output in Q2 and particularly in Q3 was boosted by construction work on the 1st stretch of the Southstream pipeline, Russia stopping the project and the subsequent suspension of tube deliveries is expected to have had a negative impact on Q4'14 tube output. EU tube production in the whole 2014 is expected to have increased 2%.

The outlook for the large diameter welded pipe market in 2015 and 2016 is also affected by the cancellation of the Southstream project. Although EU tube mills probably would not have been the major beneficiaries in terms of line pipe supplies, it would have alleviated competitive pressures in the international markets.

Although there are several other projects in Eastern Europe, North America and the Middle East potentially coming on stream in the current year and in 2016, the drop in oil prices may cause significant delays or even cancelation of these projects. Generally speaking, lower exploration and production activity in the global oil and gas industry will act as a drag on demand for line pipe and oil country tubular goods.

Meanwhile, the outlook for the key user sectors of small welded and seamless steel tubes such as the construction, automotive and metal goods industry remained moderately positive and is seen lifting demand in the EU. Nevertheless, competition from abroad in the commodity segments will remain fierce.

Source - Strategic Research Institute

voda 11 februari 2015 16:53

0

China steel exports rise as new taxation regime yet to bite

Bloomberg reported that steel exports from China, the world's largest producer, rose to a record for a fifth month.

According to data released by the customs administration, the country shipped 10.29 million tonnes of steel products in January. China is outbound shipments surged 51% to a record 93.78 million tonnes last year as producers sought overseas buyers while construction slowed and the economy cooled.

Mr Ian Roper, a commodity strategist at CLSA Limited in Singapore said that "While the Chinese steel mills continue to focus on maximizing output rather than tackling the overcapacity, exports will continue to undercut the rest of the world. The Chinese steel prices just are so low compared to the rest of the world, and with iron ore still being under pressure, there ¡s room for them to still come down a bit further."

Mr Roper said that exports during this year are expected to decline after the government canceled export tax rebates for steel alloys that contain the chemical element boron starting as part of a drive to force the sprawling domestic industry to consolidate. Shipments of the alloyed steel, which earlier earned a rebate of as much as 13% accounted for more than 30% of last year's shipments.

China's output grew at the slowest pace on record last year while steelmakers delayed cutting jobs and closing plants as construction demand dropped during the slowest year of economic growth since 1990.

According to statistics from the World Steel Association, the country's output of 822.7 million tonnes was more than double that of the combined next four largest producers Japan, the US, India and South Korea.

The Ministry of Industry and Information Technology said that iron ore imports fell 9.5% from record in December to 78.57 million tonnes last month. The country will continue to phase out overcapacity in its steel industry, which can produce 1.16 billion tonnes.

Source - Bloomberg

Vertraagd	11 mrt 2025 17:35
Koers	28,710
Verschil	-0,320 (-1,10%)
Hoog	29,400
Laag	28,460
Volume	4.377.535
Volume gemiddeld	3.033.879
Volume gisteren	4.429.592

09 mrt	ArcelorMittal, Air France-KLM en bank...
03 mrt	Video: beursexperts somber gestemd vo...
02 mrt	Experts somber gestemd voor maart maa...	8
11 feb	Von der Leyen verwerpt Amerikaanse im...	2
10 feb	Trump dreigt met importheffingen op s...
09 feb	ArcelorMittal en Aperam weekwinnaars
07 feb	Deutsche Bank verhoogt koersdoel Arce...
06 feb	Beursblik: ArcelorMittal overtreft ve...
06 feb	AEX opent waarschijnlijk hoger. Let o...	2
06 feb	ArcelorMittal ziet verlies afnemen	1

Arcelor Mittal « Terug naar discussie overzicht

Nieuws en info hier plaatsen (deel 4)

Meedoen aan de discussie?

Direct naar Forum

Detail

ArcelorMittal nieuws