Eurobench.com

voda 17 februari 2015 16:45

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ThyssenKrupp starts production at new automotive supply plant in Mexico

ThyssenKrupp started production at a new automotive components site in Mexico. The plant in Puebla will assemble front axles for Volkswagen. The commissioning of this plant is a significant increase of the production capacity in Puebla. The existing assembly site had become too small.

The acquisition of several new orders necessitated a capacity expansion. At the new 11,000 square meter site all logistics and assembly processes are now centralized under one roof. Over 2,200 axis modules can be produced and delivered to the customer daily. ThyssenKrupp supplies axles for all Volkswagen's model platforms in Mexico, including the Jetta, Golf A7 and Beetle. The new site employs around 240 people.

Dr Karsten Kroos CEO of the Components Technology Business Area said that “Mexico is one of the key growth countries for our global automotive business. We are growing with our customers, who mainly supply the export markets from there which among other things is responsible for ThyssenKrupp's global automotive components business. Further investments are planned in Mexico this year to expand existing plants and build new ones.

Source - Strategic Research Institute

voda 17 februari 2015 16:46

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EUROFER update on real consumption of steel in EU

Highlights;
1. Slight increase real steel consumption in H2 2014
2. Total 2014 consumption 1.4% up due to base year effect Q1
3. 2015 to 2016: mild gradual strengthening real consumption.

Real steel consumption in the EU increased by 1% YoY in the third quarter of 2014, in line with the moderate rise in activity in the steel using sectors. Growth in the automotive and engineering industry as well as in the tube sector outweighed the negative trend of production and as a consequence steel use in the construction sector. Preliminary data for real steel consumption in the final quarter of 2014 suggest that this cautious growth trend continued up to the end of last year.

On balance, total real steel consumption in 2014 is estimated to have increased by 1.4%, mainly as a result of the positive base year effect in the Q1 and overall rather steady but dull market conditions in the remainder of the year.

The outlook for 2015 to 2016 is for a moderate gradual strengthening of final steel consumption. The steel using sectors look set for a mild expansion of activity, in line with the expected modest economic recovery in the EU. The plausibility of this scenario has improved owing to the occurrence of lower oil prices and the weaker Euro.

As a consequence, both exports and domestic demand are seen gaining momentum. Moreover, the construction downturn is expected to finally reverse into a modest upturn during 2015 which is seen gaining further momentum in 2016. Moreover, steel intensity is foreseen to have a less negative impact on real steel consumption in 2015 and 2016 than in the preceding years.

On balance, real steel consumption is forecast to increase by 1.7% in 2015 and 2.1% in 2016.

Source - Strategic Research Institute

voda 17 februari 2015 16:47

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China market is expected to decline in the next 30 days

According to the latest Platts China Steel Sentiment Index, China's steel market is expected to decline in the next 30 days due to weaker expectations for new domestic and export orders ahead of the weeklong Chinese New Year holiday.

The February Platts CSSI fell 14.2 points from 23.1 in January to 8.9 out of 100 points to post the lowest reading since the index was started in May 2013 to reflect market participants' expectations.

The lower reading marks the eighth straight month of the index going under 50 points. A CSSI reading above 50 indicates expansion and one below 50 signals contraction.

Mr Paul Bartholomew, Platts managing editor for steel and raw materials said that “Steel business activities are expected to be slow over the upcoming Chinese New Year holidays and have weighed on the sentiment index. Steel production is widely expected to be lower over the next month, while physical steel inventories held by traders may climb.”

Source - Shanghai Daily

voda 17 februari 2015 16:48

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Mount Gibson lifts full year iron ore sales guidance

Business Spectator reported that Mount Gibson has increased its full year iron ore sales guidance after securing an additional rail haulage contract capacity from its Extension Hill iron ore mine in Western Australia.

The contract will increase Extension Hill's nominal annual export capacity by around 17 per cent to 3.5 million tonnes, with the addition of an extra train path from the Perenjori rail siding commencing yesterday.

As a result, Mount Gibson expects to export an additional 0.2 million tonnes of ore from Extension Hill in the 2015 financial year.

The company increased its ore sales guidance to 5 million tonnes to 5.4 million tonnes for fiscal 2015.

The news will be welcome for Mount Gibson, which last month flagged a first-half impairment of up to $950m due to a weakening iron ore price, and in December, announced it would mothball its Koolan Island mine.

Source - Business Spectator

voda 17 februari 2015 16:49

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Aurizon warns iron ore price collapse threat to Pilbara project

The Age reported that Mr Lance Hockridge CEO of Aurizon has warned the outlook for the rail group's Pilbara rail and port expansion is challenging following the slump in iron ore prices and said the company would consider returning cash to investors if the project was scrapped.

Aurizon plans to make a final investment decision next year on whether to proceed with building a new 430 kilometre rail line to Anketell Point in the Pilbara to export iron ore after teaming up with China's Baosteel last year to buy Aquila Resources' 50% stake in the West Pilbara Iron Ore Project.

Mr Hockridge cautioned the collapse in the price of iron ore, which is trading close to USD 60 per tonne compared with more than USD 100 per tonne 12 months ago, could stop the infrastructure project from going ahead.

He said that "Let's not be mealy-mouthed about it, at USD 60 it would be very challenging adding Aurizon would only proceed with the project if it made commercial sense. Aurizon will consider long term iron ore prices before making a decision as it assesses the costs of the project.

Mr Hockridge also warned the company's Galilee Basin rail and port project in Queensland, which is being developed with miner GVK Hancock, was unlikely to start until the back end of this decade and would depend on the price of thermal coal, which has also fallen sharply over the past year.

Mr Hockridge said that if neither project goes ahead nor the company does not find any other projects to invest in, Aurizon will consider returning cash to investors in the form of dividends of stock buybacks. Capital management is clearly high on our agenda.

Source - The Age

voda 17 februari 2015 16:50

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China likely to import more iron ore from Vale

China Daily reported that China is likely to import more iron ore from Companhia Vale do Rio Doce, the Brazilian mining giant, to bolster its raw material reserves, after the Ministry of Transport issued a new rule permitting construction of wharves that can berth bulk carriers with a capacity of 400,000 deadweight tonnes.

The new rule, announced last month, said that it is necessary for Chinese ports to keep up to date with the trend of ships getting larger and maintaining safe operations. The ministry previously suggested allowing bulk carriers larger than 300,000 DWT to call at Chinese ports as long as safety can be guaranteed.

Mr Dong Liwan, a professor at Shanghai Maritime University, said that the designed limit for larger bulk carriers is 403,944 DWT under the new rule, which is quite close to the mega ore carriers operated by Vale, indicating China is willing to deepen cooperation with the Brazilian company in mining commodity trade, as well as in increasing its iron ore reserves.

Due to opposition from Chinese shipping companies and associations, the Ministry of Transport had barred mega-bulk carriers from the nation's ports since 2011, on security concerns and on grounds that such vessels can lead to monopoly and unfair market competition after the first 400,000 DWT bulk vessel docked at the Dalian port in December 2011.

Mr Dong said that "With the prices of commodities such as iron ore, coal and cotton remaining sluggish in the global market, it is reasonable for China to import more mining materials as strategic reserves to support the country's ongoing industrial boom.”

Mr Li Xinchuang, executive deputy secretary general at the Beijing based China Iron and Steel Association, said that China's iron ore imports are set to pierce the 1 billion tonne mark for the first time this year.

Mr Li said that China's iron ore imports are expected to grow 7.1% this year, thanks to domestic supplies falling by around 70 million tonnes. Where China sources its iron ore from will become more concentrated this year. The percentage of China's iron ore imports from by Australia and Brazil will expand to more than 80% this year from 77% in 2014.

Eager to reduce the hostility from Chinese shipping companies, Vale signed strategic and freight agreements with China's State owned COSCO Group and with China Merchants Group in September, in a push to increase its presence in China.

Source - China Daily

voda 17 februari 2015 16:51

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Plunging iron ore prices threaten mine closures in Australia

According to Mr Wood Mackenzie, Resources consultancy, the sharp fall in iron ore prices leave at least three more mines in Australia at the risk of closure. The consultancy issued red flag on Cliffs Natural Resources' Koolyanobbing mine, Mineral Resources' Carina mine and Grange Resources' Savage River mine.

With iron ore prices continuing its downward slide, the profitability gap between the major iron ore producers and the rest of the players have widened. The prices which crashed 47% in 2014 have further declined by another 14% so far this year. The prices had touched AUD 61.10 per tonne last Friday, recording its lowest level since May 2009. The higher cost mines are at the risk of closure if prices drop to less than AUD 60 per tonne.

Earlier in December 2014, the consultancy had informed its customers that the above three mills in addition to Arrium's Peculiar Knob mine faces potential risk of closure. The Peculiar Knob mine was mothballed during January this year. Although conditions have shown slight improvement in December 2014, the three mines still face severe cost issues. Long road haul distances and significant port fees continue to squeeze margins.

Mr Wood Mackenzie said that the companies had conducted rounds of negotiations with the contractors, as part of cutting costs. However, the talks failed to yield productive results as no savings could be found in the existing contracts.

Source - Scrap Monster

voda 17 februari 2015 16:52

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Rio Tinto defies commodity rout with big payout

Global miner Rio Tinto handed shareholders AUD 2 billion capital return on top of a higher than expected dividend on February 12, despite reporting its worst half year profit in two years. The bumper return came after the world no 2 miner cut costs, capital spending and debt to shore up its cash flows against collapsing commodity prices, with the steepest slide in its biggest business, iron ore.

Mr Sam Walsh CEO of Rio Tinto, under pressure to please investors to ward off a renewed takeover approach from rival Glencore Plc said that he was confident the company would continue to generate sustainable returns for shareholders.

Mr Walsh said that "With lower commodity prices and uncertain global economic trends, the operating environment remains tough. However, in these conditions Rio Tinto's qualities and competitive advantages deliver superior value."

Underlying earnings for the six months to December 31 fell 30% to AUD 4.19 billion from a year earlier, based on Reuters calculations off the full year result but was well above analysts' forecasts for AUD 3.76 billion.

Rio increased its full year dividend by 12% to AUD 2.15, which was higher than the AUD 2.12 that the market was expecting. It would return AUD 2 billion through a buyback of its Australian and UK listed shares, which was in line with what analysts had expected.

Source - Reuters

voda 17 februari 2015 16:53

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ArcelorMittal update on situation in Brazil

Brazil segment crude steel production decreased by 7.2% to 2.8 million tonnes in Q4 2014 as compared to Q3 2014 due primarily to seasonally lower domestic demand as well as weather related interruptions.

Steel shipments in Q4 2014 increased by 1.8% to 2.9 million tonnes as compared to Q3 2014, primarily on account of increased slab exports from Brazil post the restart of blast furnace No.3 at Tubarão in Q3 2014.

Sales in Q4 2014 decreased by 6.1% to USD 2.5 billion as compared to Q3 2014, primarily due to the impact of the weaker Brazilian real and a negative mix effect due to higher exports of slabs. Domestic selling prices were largely stable.

EBITDA in 4Q 2014 increased by 18.7% to USD 546 million as compared to USD 460 million in Q3 2014 primarily on account of higher steel shipment volumes, lower costs and higher profitability in our tubular operations in Venezuela.

EBITDA in Q4 2014 was higher as compared to Q4 2013 by 9.9%. EBITDA increased primarily on account of additional slab volumes and lower costs offset in part by lower long product shipments (-6%).

Source - Strategic Research Institute

voda 17 februari 2015 16:55

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ArcelorMittal Kriviy Rih output up by 24pct in January 2015

In January ArcelorMittal Kriviy Rih produced 416,000 tonnes of rolled metal, up by 24.4% YoY but down by 6.5% MoM. Steel manufacture went up by 19.4% YoY, but decreased by 10.7% MoM, to 448,000 tonnes while pig iron output grew by 18.4% YoY, but fell by 10.4% MoM, to 395,000 tonnes.

A low base in January 2014 with its active overhauls explains this YoY increase. Thus, in January 2014 the company produced 334,400 tonnes of rolled metal, 375,400 tonnes of steel and 333,400 tonnes of pig iron, all down by 28.8%, 30% and 28.8% YoY respectively.

In December 2014 AMKR produced 445,200 tonnes of rolled metal, 502,100 tonnes of steel and 440,400 tonnes of pig iron.

Source - Metal Ukraine

voda 17 februari 2015 16:56

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ArcelorMittal analysis of segment operations

Effective January 1st 2014, ArcelorMittal implemented changes to its organizational structure to give it a greater geographical focus. The principal benefits of the changes are to reduce organizational complexity and layers; simplify processes; capture regional synergies and take advantage of the scale effect within the regions.

As a result, the analysis of segment operations presented in this earnings release has been prepared reflecting the new organizational structure. The changes are only related to the allocation between the new reporting segments of NAFTA, Brazil (Brazil and neighboring countries), Europe and ACIS. There are no changes to the Group total or to the Mining segment for previous years.

The NAFTA segment includes the Flat, Long and Tubular operations of USA, Canada and Mexico. The Brazil segment includes the Flat operations of Brazil and the Long and Tubular operations of Brazil and its neighboring countries including Argentina, Costa Rica, Trinidad and Tobago and Venezuela. The Europe segment comprises the Flat, Long and Tubular operations of the European business, as well as Distribution Solutions (AMDS). The ACIS division is largely unchanged with the addition of some Tubular operations. The Mining segment remains unchanged.

NAFTA segment crude steel production decreased by 5.3% to 6.1 million tonnes in Q4 2014 as compared to Q3 2014.

Steel shipments in Q4 2014 decreased by 1.0% to 5.8 million tonnes as compared to Q3 2014, primarily driven by a 6.6% decline in long product steel shipment volumes offset in part by a 0.2% increase in flat product steel shipment volumes.

Sales in Q4 2014 decreased by 8.5% to USD 5.2 billion as compared to Q3 2014, due to lower steel shipments as discussed above, and lower average steel selling prices (-3.3%). Average steel selling price for flat products and long products declined -3.9% and -2.6%, respectively.

EBITDA in Q4 2014 decreased to USD 341 million as compared to USD 429 million in Q3 2014. EBITDA for Q4 2014 was negatively impacted by USD 76 million provision related to onerous annual tin plate contract at Weirton, in the US. On an underlying basis, EBITDA in Q4 2014 was 2.7% lower as compared to Q3 2014. The decline in average steel selling prices was largely offset by lower raw material costs and decreased maintenance expenses.

EBITDA in Q4 2014 was down 15.6% as compared to Q4 2013. On an underlying basis, EBITDA in Q4 2014 was 3.1% higher as compared to Q4 2013 primarily due to higher steel shipments (+1.3%).

Operating income for Q4 2014 was also impacted by impairment charges of USD 114 million primarily related to the idling of the steel shop and rolling facilities of Indiana Harbor Long carbon operations in the US.

Source - Strategic Research Institute

voda 18 februari 2015 16:57

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China steel export by destination in 2014 - TEX

TEX reported that China's export quantity of steel products by destination in the calendar year of 2014 was revealed. It was compiled by the Japan Iron & Steel Federation based on data released by the General Administration of China Customs. According to it, China's export quantity of steel products in 2014 was 81,413,000 tonnes up 51.9% from the previous year.

Korea - 12.842 million tonne up 33.7% YoY
Central and South America - 9.379 million tonne up 48.5% YoY
Middle East - 9.061 million tonne up 65.3% YoY
Vietnam - 6.582 million tonne up 72.2% YoY
Africa - 6.636 million tonne up 48.1% YoY
EU - 5.968 million tonne up 77.3% YoY
Philippines - 4.760 million tonne up 95.8% YoY
North America - 4.063 million tonne up 68.5% YoY
Thailand - 3.664 million tonne up 28.8% YoY
Indonesia - 3.377 million tonne up 52.3% YoY
Singapore - 3.151 million tonne up 9.7% YoY
Taiwan - 2.772 million tonne up 83.4% YoY
Malaysia - 2.423 million tonne up 38.6% YoY
Japan - 1.470 million tonne up by 2.15 times from the previous year
Oceania - 0.738 million tonne up 23.0% YoY

Source - The TEX Report

voda 18 februari 2015 16:58

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Anglo reports USD 3.5 billion write down at flagship Brazilian iron ore project

Anglo American reported that impairments of USD 3.9 billion from the assumed worth of assets, including its Brazilian flagship iron ore project, Minas Rio.

Mr Mark Cutifani CEO of Anglo American said that the steep drop in the iron ore price has resulted in a USD 3.5 billion post tax write down in the carrying value of Minas Rio.

Mr Cutifani said that Minas Rio was valued at USD 5.6 billion at the end of 2014. The impairment was predominantly for Minas Rio. We have completed the project ahead of the revised schedule and we also announced that the total capex would be USD 400 million lower than the revised number.

He said that "So we expect no change from an operations standpoint, it's all driven by lower commodity prices, lower iron ore price in the short term but also our expectation in the medium to long term."

Anglo is the first of the major global diversified miners to announce asset impairments due to lower commodity prices.

Ms Jessica Fung, commodities and equity research VP at BMO Capital Markets said that "There is always a risk that further write downs from mining companies could occur if commodity prices trend lower. However, this only applies to those assets that were developed and/or acquired during a higher commodity price environment, so legacy operations won't be impacted as greatly as Minas Rio."

She said that iron ore assets are particularly vulnerable right now because the price decline is relatively recent. Aluminum assets were written down a number of years ago, and coking coal assets were also already written down in the last couple of years.

Source - Business News Americas

voda 18 februari 2015 16:59

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EUROFER update on apparent consumption of steel in EU

Highlights
1. Apparent consumption 4.4% YoY up in Q3 2014
2. Imports continued to rise at the expense of domestic deliveries
3. Gradual further improvement demand in 2015 to 2016
4. Imports weigh down on performance EU steel mills.

Apparent steel consumption in Q3 2014 grew 4.4% YoY, a fairly similar growth rate as registered in the Q2 of last year. In line with the usual pattern of steel demand over the year, Q3 apparent steel consumption was 8% down on the average quarterly demand in H1 2014.

Total imports (including semis) rose 13.4% YoY in Q3 2014, while easing somewhat in comparison with the high import volumes that entered the EU in Q2. Meanwhile, deliveries from domestic mills on the EU market increased by just 1% YoY. As a consequence, predominantly third country steel suppliers benefited from the increase in EU steel demand in the Q3.

Estimates for Q4 2014 indicate that growth in apparent consumption turned negative; the 2.5% YoY drop basically reflects the usual Q4 destocking. However, customs data signal the continuation of the rising trend in imports in Q4 2014. As a consequence, EU steel producers are expected to have suffered a drop in deliveries and a further loss of market share to third country suppliers. All in all, apparent steel consumption is expected to have increased 3.3% in 2014.

The EU steel market is seen slowly but gradually strengthening further in 2015 and 2016, driven by the expected improvement of activity in the steel using sectors and the related need for a modest stocking up of inventories in the supply chain and at end users. However, within this framework of moderately expanding steel demand in the EU, growth perspectives for EU steel producers will remain rather muted owing to the anticipated continuation of high imports arriving into the EU market.

Apparent steel consumption is seen growing by around 2% in 2015 and 2.5% in 2016.

Source - Strategic Research Institute

voda 18 februari 2015 17:00

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Fortescue announces half year financial results of FY15

Fortescue announced half year financial result for FY 2015.

Highlights;
1. Net profit of USD 331 million and Underlying EBITDA 1 of USD 1.4 billion;
2. 82.7 million tonnes shipped, 53% greater than the prior comparable period;
3. USD 30 per wmt C1 costs, a further 9% improvement over the prior comparable period;
4. USD 25 to USD 26 per wmt C1 cost guidance for the second half of FY15;
5. USD 43 per wmt delivered costs for the first half reducing to USD 35 per wmt in the second half (inclusive of C1, shipping, royalty and admin costs);
6. Capital guidance halved to USD 650 million with focus on working capital and cash management;
7. USD 1.6 billion cash on hand at 31 December 2014;
7. USD 500 million voluntary debt repayment reducing gross debt to USD 9.1 billion;
8. AUD 0.03 per share fully franked interim dividend.

Ebitda USD 1.4 billion;
Total revenue of USD 4,858 million (1HY14: USD 5,873 million) reflects a 53 per cent increase in shipments to 82.7 MT offset by a decrease in iron ore market prices.

During the half year, Fortescue's realised price was USD 66 per dmt (1HY14: USD 124 per dmt), based on the 62% Platts index of USD 82 per dmt (1HY14: USD 134 per dmt).

Fortescue continued to reduce C1 costs which averaged USD 30 per wmt for the half year, a nine per cent improvement compared to the prior period as a result of:
1. Achieving full operational capacity across all mines and the integrated rail and port operations;
2. A focus on mine efficiencies and planning improving strip ratios;
3. Enhanced processing capability;
4. Productivity and efficiency improvements across all sites; and
5. A lower Australian dollar and lower fuel prices.

Cash flow;
Cash on hand at 31 December 2014 was USD 1.6 billion. Operations continued to generate solid cash margins with total cash inflows from operations of USD 5.1 billion, inclusive of customer prepayments, generating net cash flow of USD 905 million after FY14 final tax payments.

Capital expenditure for the half year decreased to USD 436 million (1HY14: USD 1,354 million), reflecting completion of the 155mtpa expansion in the previous financial year. As announced, Fortescue identified significant capital reductions and deferral opportunities across its operational and expansion projects reducing full year guidance by half to USD 650 million.

Balance sheet;
Fortescue's net debt at 31 December 2014 was USD 7.5 billion, including cash on hand of USD 1.6 billion and finance lease liabilities of USD 315 million. An additional USD 500 million of debt was repaid during the period, bringing the total repayments, including term loan amortisation, since November 2013 to USD 3.7 billion. This has resulted in an interest saving of approximately USD 330 million per annum.

Fortescue's flexible debt profile does not contain any maintenance covenants and allows for voluntary repayments, refinancing of debt prior to maturity and facilitates debt repayments to achieve the initial targeted gearing level of 40%. As illustrated in the debt maturity profile below, the earliest debt maturity is in 2017. Approximately 60% of long term debt is available for voluntary repayment or refinance prior to maturity dates and at Fortescue's sole option.

Dividend;
The Board declared a AUD 0.03 per share interim fully franked dividend representing a 21 per cent payout ratio for the half year. Fortescue is committed to its strategy of moving to a 30% to 40% dividend payout ratio as the initial gearing target of 40 per cent is achieved.

Guidance;
Fortescue maintains its shipping guidance of 155 to 160 million tonnes for the full year, reflecting allowance for the second half wet season. Costs guidance for the second half of the year is revised down to USD 25 to USD 26 per wmt based on an average exchange rate of AUD 0.80 and continuing low oil prices, bringing the full year C1 operating cost to USD 28 to USD 29 per wmt. Total delivered costs are forecast to reduce to USD 35 per wmt by the end of the financial year based on the C1 cost guidance and current shipping and royalty rates.

Mr Nev Power CEO of Fortescue said that “Fortescue is delivering record operational performance and consistent, sustained cost reductions through focusing on the things we can control safety, productivity and efficiency. As a result, we are generating positive cash margins and continuing to strengthen our financial position to deliver long term value for shareholders.”

Source - Strategic Research Institute

voda 18 februari 2015 17:01

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Ezz Steel posts Q3 loss of 285mn Egyptian pounds

Reuters reported that Ezz Steel, Egypt's biggest steel maker posted a third quarter net loss that widened to EGP 285.38 million from 84.1 million a year earlier.

The company said that Q3 sales fell 4.6% to 4.62 billion versus 4.84 billion a year earlier.

For the nine months to September 30, Ezz posted a net loss of 461 million versus a net profit of 218 million a year earlier. Sales for the period fell 6.9% to 14.881 billion.

Source - Reuters

voda 18 februari 2015 17:02

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China MOC considers taking more actions about steel pipe trade dispute

Xinhua cited an official of China's Ministry of Commerce as saying that the ministry will consider taking possible actions in response to a ruling by the World Trade Organization panel about a steel pipe trade dispute.

MOC said that China will seriously evaluate the WTO panel report and consider taking possible actions. In December of 2013, the MOC decided to impose provisional anti-dumping measures on imported high performance stainless steel seamless tubes from the European Union (EU), Japan and the United States for substantial damage to Chinese industry.

The remarks of the official, who is in charge of the treaty and law department of the MOC, came one day after the WTO panel made public its rulings over the trade dispute. The panel supports China's standpoints on issues such as the concrete analysis about price reduction and price impact.

However, China has reservations on the panel's rulings about issues such as the dumping margin and fair comparison. High performance stainless steel seamless tubes are used mainly for super heaters and reheaters of super critical boilers in power stations.

Source - Xinhua

voda 18 februari 2015 17:05

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Olympic Steel announces quarterly cash dividend

Olympic Steel Inc announced that the Company's Board of Directors approved a regular quarterly cash dividend of USD 0.02 per share. The dividend is payable on March 16th 2015, to shareholders of record on March 2nd 2015.

Source - Strategic Research Institute

voda 18 februari 2015 17:06

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Koersstijging hierdoor?

ArcelorMittal proposes to maintain annual dividend payment

ArcelorMittal's Board of Directors proposes to maintain the annual dividend payment at USD 0.20 per share for 2015. Subject to shareholder approval at the next annual general meeting on May 5th 2015, this dividend would be paid in June 2015.

Key recent developments;
On February 3th 2015, Standard & Poor's downgraded ArcelorMittal's long term credit rating to BB with a stable outlook (from BB+ with a negative outlook).

On January 23rd 2015, ArcelorMittal announced that it will idle its Indiana Harbor Long Carbon (IHLC) facility beginning with the electric arc furnace on March 1, 2015, followed by the rolling mill operation in Q2 2015, pending customer requirements.

On January 19th 2015, ArcelorMittal announced the sale of its interest in the Kuzbass coal mines in the Kemerovo region of Siberia, Russia, to Russia's National Fuel Company. The assets include the coal mines of Berezovskaya and Pervomaskaya, which together produce 700,000 tonnes of coal a year. The Company's Ukrainian steel operations now source coking coal from ArcelorMittal's mines in Kazakhstan. This transaction closed on December 31st 2014.

On January 14th 2015, ArcelorMittal announced the issuance of €750 million 3.125% Notes due January 14th 2022. The Notes were issued under ArcelorMittal's EUR 3 billion whole sale Euro Medium Term Notes Program.

On November 25th 2014, ArcelorMittal and the Algerian state owned companies Sider and Ferphos Group signed an agreement whereby the Company's interest in the Tebessa mines in Ouenza and Boukhadra will be diluted from 70% to 49%. The transaction was completed on January 10, 2015.

On November 14, 2014, ArcelorMittal signed a memorandum of understanding with the Banque et Caisse d'Epargne de l'Etat whereby the Company and BCEE irrevocably agreed to sell and buy, respectively, the Liberte property (formerly the headquarters of the Company) in Luxembourg city. Accordingly, the property was classified as held for sale at December 31st 2014. The disposal was completed on January 23rd 2015.

Outlook and guidance;
Based on the current economic outlook, ArcelorMittal expects global apparent steel consumption to increase by approximately +1.5% to +2.0% in 2015. ArcelorMittal expects the pick-up in European manufacturing activity to continue and support ASC growth of approximately +1.5% to +2.5% in 2015 (versus a growth of 3.4% in 2014). Driven by robust underlying steel demand and significant restocking, ASC in the US grew by 10% in 2014.

Whilst underlying demand continues to expand, due to the absence of a further inventory build in 2015, ASC in the US is expected to be similar, or up to 1% below 2014 levels. Following a 6% decline in 2014, Brazil ASC is expected to grow by +1 to +2% in 2015. In China, we see signs of stabilization due to the government's targeted stimulus, and expect steel demand growth in the range of +1.5% to +2.5% for 2015.

While there remain risks to the global demand picture, given ArcelorMittal's specific geographical and end market exposures, the Company expects its steel shipments to increase further in 2015 as compared to 2014.

The Company expects Group EBITDA to be within the range of USD 6.5 billion to USD 7 billion for 2015. Overall, steel markets continue to grow, in particular for our high value added products; a forecast 4% to 5% increase in shipment volumes (approximately half of which follows the Newcastle reline completion and full year impact of the restart of BF 3 in Tubarao, Brazil) together with improved cost performance are expected to offset the impact of lower transaction prices and the impacts of translation.

Assuming current market conditions, in excess of one-third of the impact of lower iron ore prices on mining revenues will be offset by improved cost performance including the benefits of foreign exchange, energy and freight as well as higher volumes.

Additionally, the Company expects net interest expense to decline to approximately USD 1.4 billion and Capital expenditure to decline to approximately USD 3.4 billion in 2015. As a result, at the bottom end of the guidance range the Company would expect to be free cash flow.
While net debt is expected to follow a normal seasonal pattern, overall progress towards the medium term net debt target of USD 15 billion is anticipated during the course of 2015.

Source - Strategic Research Institute

voda 18 februari 2015 17:07

0

Alert Steel update on business rescue

Shareholders of Alert Steel Holdings are referred to the announcement released on Sens on December 30th 2014 regarding the business rescue proceedings of Holdings.

The business rescue practitioner is currently awaiting payment for business rescue fees and expenses. Upon payment of these fees and expenses, Holdings should no longer be in financial distress, following which the business rescue proceedings will be terminated.

Shareholders are advised to exercise caution when dealing in the securities of Holdings until a further announcement has been made.

Source - www.fin24.com

Vertraagd	12 mrt 2025 14:05
Koers	28,580
Verschil	-0,130 (-0,45%)
Hoog	29,590
Laag	28,260
Volume	1.817.154
Volume gemiddeld	3.083.655
Volume gisteren	4.377.535

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