Eurobench.com

voda 21 februari 2015 15:49

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ArcelorMittal Dofasco confirms blast furnace emissions fell on neighbourhood

CBC reported that ArcelorMittal Dofasco confirmed that the black grit that fell on a north Hamilton neighbourhood last week came from one of its blast furnaces.

Ms Marie Verdun spokeswoman of ArcelorMittal Dofasco said that "Tests have confirmed that the operational upset at our No.4 blast furnace on February 9 did cause localized off property impact which was a very fine particulate of coke and iron fines.”

Grenfell Street residents said that they saw a black cloud emerge above the steel facility then blow over their homes that day. Snowbanks, homes and vehicles on Grenfell Street were coated with a coarse black grit and the area councillor said he received complaints about fallout from as far away as east Mountain.

The Ministry of Environment, meanwhile, released the results of its testing that shows the grit was made up of coke and magnetic iron.

Mr Geoffrey Knapper, the Ministry of Environment's district manager for Hamilton, said that the substance is consistent with what we'd expect from a blast furnace slip but said he still couldn't definitively say it came from ArcelorMittal Dofasco.

Mr Knapper said that the ministry is waiting for the company's analysis of what happened before it draws a definite link. The ministry's enforcement division will decide whether or not to punish the company for the emissions incident.

Source - CBC

voda 22 februari 2015 16:48

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CIL mines SPVs for 1 billion tonne mark by FY20

PTI quoted a government official as saying that CIL will augment output at a compound annual growth rate of 12% and produce an annual 1 billion tonnes by FY20.

Central to the strategy will be a more cohesive coordination, enabled through special purpose vehicles among CIL, the railways and coal-bearing states to remove the evacuation bottlenecks that currently hamper production at existing mines.

Mr Sutirtha Bhattacharya chairman of CIL said that “CIL will form SPVs with the states governments concerned and the railways to develop the rail network, especially last-mile connectivity to pitheads. States like Odisha, Chhattisgarh and Jharkhand are already on board for the plan, he said, adding that CIL will have a 64% stake in the proposed companies where the railways’ stake will be 11%. West Bengal and Uttar Pradesh could also roped in for the venture.”

Mr Bhattacharya said that CIL, with an annual capital expenditure of around INR 6,000 crore for technology upgrades in opencast mines, will additionally invest a similar amount for equity infusion into the proposed SPVs.

He said that “The coordination with the railways for implementation has already been initiated. SECL (South Eastern Coalfields, one of CIL’s arms), already has two SPVs with state governments. More SPVS are to be set up to build the rail infrastructure,” adding that the the company was counting on timely completion of three critical railway lines, land acquisition and green clearances through these SPVs.

CIL has been having a tough time in acquiring land for new projects, a problem that prompted the Maharatna to petition the government last year saying that “It (the target of 1 billion tonnes) would indeed be challenging in view of the progress being made. The government will have to ensure that both ongoing and new projects get requisite land in a time-bound manner since the gestation period involved in ramping up production after the possession of land is about 3 to 5 years.”

As FE reported earlier this month, lack of coordination between the railways and CIL had prompted private power producers to urge the power minister to look into the the slippages in delivery of coal, leading to developers not receiving the contracted quantity of the fuel. The railways and CIL have often blamed each other for not being able to deliver the contracted amount of coal.

Additionally, CIL also provided the estimated increase in output from its subsidiaries by FY20, with Mahanadi Coalfields and SECL expected to contribute nearly half of the target of 908 million tonnes from the existing mines. The gap would be bridged by newer projects that would be undertaken in the coming months. While the coal miner expects to mine 556 million tonnes in FY16, up nearly 10% from current fiscal, the country’s projected coal demand is pegged at around 1,200 million tonnes by 2019-20, at an envisaged CAGR of 7%.

Source - PTI

voda 22 februari 2015 16:52

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Fortescue CEO points finger at Rio Tinto and BHPB for low iron ore prices

As iron ore prices slip further into the abyss, Mr Nev Power CEO of Fortescue Metals Group believed the relentless expansion projects by Rio Tinto and BHP Billiton are to blame.

Mr Power said that “The low iron ore price is not benefiting anybody. It has drained an enormous amount from the economy, from the West Australian economy and the (iron ore) industry in general. The continual move to add supply to an already depressed iron ore market is hindering smaller miners and creating a hole through government budgets.”

Mr Power said that “As we know in the iron ore business there has been plenty of talk about what projects will come on but they have been delayed and not come on as forecast but this apprehension of excess supply is influencing the price.”

Last year, West Australian Premier Mr Colin Barnett directly accused the two miners of working in a concert way. This seeming strategy of the two major producers to flood the market (with supply) and force the price down, I mean, remember who your landlord is that’s hurting Western Australia.”

He said that "I will just make the point, you can have your corporate strategy, but there's also a sense of corporate social responsibility. And while you are pursuing your business strategy which I tend to think is flawed you are actually hurting the host State, the State that provides the iron ore and generates most of the wealth of Rio Tinto and BHP at a world scale."

Source – Mining Global

voda 22 februari 2015 16:54

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Serbia not giving up on steel plant sale - PM

Reuters reported that Serbia had not given up on selling its sole steel plant, after the collapse of a deal with US group Esmark hurt efforts to rein in state spending under a new loan agreement with the International Monetary Fund.

The Tanjug state news agency quoted Prime Minister Mr Aleksandar Vucic as saying his government hoped to revive the privatisation of Zelezara Smederevo in a year or two.

Mr Vucic said that his government had been unable to reach agreement with Esmark on the sale of the plant, which has been swallowing USD 120 million per year in taxpayers' money since 2012, when Serbia bought it back from US Steel for USD 1 to avert its closure and save jobs.

He said his government planned to hire a professional management team to help increase production and return the plant to profitability, and eventually sell it. The mill employs around 5,000 people and produces 340,000 tonnes of steel a year, way below its capacity of 2.1 million tonnes.

Source – Reuters

voda 22 februari 2015 16:55

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Reliance Steel announces financial results for Q4 and FY2014

Reliance Steel & Aluminum Company announced its financial results for the Q4 and full year ended December 31st 2014.

Q4 2014 Financial Highlights;
1. Sales were USD 2.58 billion, up 11.7% from USD 2.31 billion in the Q4 of 2013 and down 4.7% from USD 2.71 billion in the Q3 of 2014.

2. Tons sold were up 4.4% from the Q4 of 2013 and down 4.9% from the third quarter of 2014, with the average selling price per ton sold up 6.4% from the fourth quarter of 2013 and down 0.1% from the third quarter of 2014.

3. Net income attributable to Reliance was USD 92.3 million, up 49.4% from USD 61.8 million in the Q4 of 2013 and down 3.4% from USD 95.5 million in the Q3 of 2014.

4. Earnings per diluted share were USD 1.18, up 49.4% from USD 0.79 in the fourth quarter of 2013 and down 2.5% from USD 1.21 in the Q3 of 2014.

5. Non GAAP earnings per diluted share were USD 1.01, up 7.4% from USD 0.94 in the fourth quarter of 2013 and down 24.1% from USD 1.33 in the third quarter of 2014.

6. A pre-tax LIFO charge, or expense, of USD 24.5 million, is included in cost of sales compared to a pre tax LIFO credit, or income, of USD 12.7 million in the fourth quarter of 2013 and an expense of USD 20.0 million for the third quarter of 2014.

7. The effective tax rate was 26.6% compared to 33.0% in the fourth quarter of 2013 and 25.7% in the third quarter of 2014.

8. Cash flow from operations was USD 193.2 million for the fourth quarter of 2014 and net debt to total capital was 35.0% at December 31st 2014.

9. Completed the acquisition of Fox Metals and Alloys, Inc., effective December 1st 2014.

10. Repurchased USD 50 million of Reliance common stock.

11. Quarterly cash dividend increased to USD 0.40 per share, a 14% increase.

Full Year 2014 Financial Highlights;
1. Sales were a record USD 10.45 billion, up 13.3% from USD 9.22 billion in 2013.
2. Tons sold were up 13.0% from 2013 and the average selling price per ton sold was up 0.4%.
3. Net income attributable to Reliance was USD 371.5 million, up 15.5% from USD 321.6 million in 2013.
4. Earnings per diluted share were USD 4.73, up 14.3% from USD 4.14 in 2013.
5. Non GAAP earnings per diluted share were USD 4.83, up 8.5% from USD 4.45 in 2013.
6. A pre tax LIFO charge, or expense, of USD 54.5 million, is included in cost of sales compared to a pre-tax LIFO credit, or income, of USD 50.2 million in 2013.
7. The effective tax rate was 31.1% compared to 32.1% in 2013.
8. Cash flow from operations was USD 356.0 million.

Mr David H Hannah, Chairman and CEO of Reliance said that "Reliance achieved solid growth in 2014 and we are pleased with our strong operational execution throughout the year. Demand in the Q4 reflected the normal seasonal slowdown caused by fewer shipping days due to the holiday season and holiday related closures by many of our customers. However, with the exception of the energy markets, underlying demand momentum in the fourth quarter remained strong. Reliance's sequential quarter 4.9% reduction in tons sold was better than the MSCI Industry average decline of 7.6% in the quarter.

He said that “Reliance also significantly outpaced the industry for the full year with a 6.1% increase in same store tons sold compared to the MSCI Industry average increase of 4.2%. Although metals pricing was generally stronger in 2014 than in 2013, steel pricing was constrained by historically high levels of imports supported, in part, by a strengthening US dollar. This, plus the effects of significant decreases in the price of scrap and other steelmaking raw materials during the 2014 fourth quarter, resulted in falling steel prices that have continued into 2015 and negatively affected our gross profit margins."

Mr Hannah said that "With improved overall demand and pricing throughout the majority of the year, Reliance generated full year net sales growth of 13% over 2013 with nearly a 34% increase in full year operating income on a FIFO basis, reflecting another strong performance by our managers in the field. We also completed three acquisitions in 2014 that nicely complement the Reliance family of companies in terms of geographic footprint, end market diversification and product mix."

He said that "During 2014, in addition to the acquisitions, we spent USD 190 million for capital expenditures to support organic growth initiatives, repurchased USD 50 million of our common stock and paid regular dividends of USD 109 million to our shareholders. Our healthy balance sheet and confidence in our operational execution provides a strong foundation for us to continue investing in the growth of our business while, at the same time, returning value to our shareholders through dividends and share repurchases."

Source – Strategic research Institute

voda 22 februari 2015 16:55

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State of the art rolling mill unveiled at Hamilton Facility

CNW reported that building on the importance of the manufacturing sector to the Canadian economy, a new, CAD 5.96 million rolling mill was put into service at Natural Resources Canada's CanmetMATERIALS facility in Hamilton. With its unique features, the mill will offer significant benefits to both the pipeline and automotive manufacturing industries and will attract innovative projects to Canada.

With this mill, CanmetMATERIALS can now develop steel alloys in the most comprehensive, efficient and economical way, creating the conditions in the manufacturing sector to provide both jobs and opportunities for the local economy.

Smart alloy design and innovative processing methods are essential to producing the high quality, low cost steel and aluminum sheets that improve the fuel efficiency and safety of passenger cars and light duty trucks. The mill will also help develop high strength and thick pipe steel alloys to further enhance Canada's world class pipeline safety system.

The mill is accessible to industry interested in R&D work on a cost recovery basis.

Quick Facts;
The Pilot Scale Rolling Mill will allow CanmetMATERIALS scientists to accelerate the production of new steel alloys for pipelines and the development of lightweight, crash resistant steel and aluminum components for vehicles, making them more fuel efficient.

Since the rolling mill can roll samples with initial thickness similar to those used in industry, the cost of development and the time to market will be reduced.

CanmetMATERIALS works in collaboration with universities and industry. This new facility will provide a training ground for Canadian students and accelerate transfer of technology to industry.

The CanmetMATERIALS laboratory was relocated from Ottawa to Hamilton in 2010 in order to better support innovation in Canada's manufacturing sector.

Source - CNW

voda 22 februari 2015 16:57

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Market trend of import of ferroalloy - TEX

Silicon Metal - In China, many of the producers are preparing for Chinese New Year holidays (18th to 24th of February) and the operating rate is pretty low. Besides, some of the producers are scheduled to restart operation in March after taking longer holidays. On the other side of the coin, the price negotiation for March shipment was active in the second week of February even before the holidays. The offer price submitted by the producer is a bit higher, but Japanese shippers are taking a careful stance and seem not to buy a high priced product.

In Japan, the demand from the aluminium industry is weak, which in turn leads to a downward pressure on prices, but the cheap products disappeared and the price strengthened the stability, and partly as a result of the buying movement by the customers which could not secure the spot goods having propped up the price, the current contract price remains unchanged from the end of January.

Ferro silicon =/b> In China, the buying motivation of steel mills is low, and the downward pressure on prices is strong in the market. Therefore, the offer prices submitted by major producer’s remains flat but owing to the small and medium-sized producers' cheap priced sales below that level, the contract price was slightly down. The same can be seen in the case of export that, while the major producers didn't change the offer price for March shipment, the information is obtained sporadically that the trading firms are selling a small lot at a cheap price.

In Japan, the cheap products shipped by routes other than the regular route and small lot cheap products affected the market to a large extent, and the contract price of the regular route products is down by USD 5 per tonne from the end of January. The price of products distributed in the market also dropped and the main contract price is down by around USD 5 from the end of January.

Russian products are mainly based on a long-term contract, and the thin trading is going on in the spot market. In reaction to the decrease in the prices of other sources, both offer and contract prices remain unchanged.

Source –The TEX Report

voda 22 februari 2015 16:57

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South America crude steel output up in January

Business News Americas reported that South American crude steel production rose to 3.88 MT in January from 3.63 MT a year earlier.

According to the latest World Steel Association, Brazil Latin America's largest steel producer saw output rise 7.7% to 2.97 MT last month. Next was Argentina, which produced 386,000 tonnes of crude steel compared to 397,000 tonnes in January 2014.

Production in Venezuela fell 5.9% to 150,000 tonnes, while output in Peru was up 23.1% to 115,000 tonnes. Chile and Colombia reported 100,000 tonnes of crude steel production each in January, up 5.3% and 14.9%, respectively. Ecuador was next with 50,000 tonnes up 1.5%.

North American production was down 1.34% to 10 MT in January, including Mexico's output of 1.55 MT or 6% lower. Output from China, the world's largest producer, was 65.5 MT in January from 68.7 MT a year earlier.

Source – Business News Americas

voda 22 februari 2015 16:58

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French funding unable to save Eiffel Steelworks

Significant funding from its French parent was not enough to prevent the administration of a Wigan based steel business which worked on the development of Liverpool One and Canary Wharf, Insider can reveal.

Eiffel Steelworks entered administration in November 2014 but was rescued by primary customer William Hare Group (WHG), saving 60 jobs. However, despite the GBP 500,000 deal creditors, including its former owner, are likely to be left more than GBP 6 million out of pocket.

Eiffel Steelworks collapsed on 17 November when Matthew Dunham and Adam Stephens of Smith & Williamson were appointed joint administrators by the directors. A newly published statement of administrator's proposals, dated 8 January 2015, sheds fresh light on the company's plight.

Established in November 2006 as a UK subsidiary of French steel fabrication giant ECM, Eiffel Steelworks operates a steel fabrication and welding business from leasehold premises at Wigan Enterprise Park. It produces up to 10,000 tonnes of fabricated steel per year, with Bury-headquartered WHG as its main customer.

The company has worked on iconic projects across the country including the mixed use Canary Wharf scheme in London and the retail destination Liverpool One, while it also has a current order to provide structural steel for the conversion of the Olympic Stadium into the new home of West Ham United.

ECM had provided extensive funding to Eiffel Steelworks down the years in the expectation that it would become profitable after an initial loss-making period. With losses increasing, however, ECM took the decision to withdraw from UK operations and sell the business.

Smith & Williamson was brought in on 9 October to carry out an accelerated disposal but no acceptable offers were received, and it was eventually appointed administrator on 17 November.

The administrators reported that WHG was the only company to submit an offer and that this offer was improved during the resulting negotiations.

Source – Insider Media

voda 22 februari 2015 16:59

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Talks taking place with potential buyers over collapsed steel firm

Discussions are taking place with potential buyers over the sale of a financially troubled South Yorkshire steel firm, administrators have revealed.

Rotherham based MTL Group collapsed into administration earlier this month, resulting in the immediate loss of 157 jobs. A further 146 jobs could go at the metal manufacturing specialist unless a new owner can be found.

A spokesman for Ernst & Young, who have been appointed to oversee the administration process, said it is hoped the business can be sold as a going concern. The administrators are continuing to trade the business and seek buyers. Customers are continuing to support the business by placing orders and there has been interest from various parties in acquiring the business and assets as a going concern.

He said that this interest and discussions with regard to the sale of the business are at an early stage and the administrators will make further announcements when appropriate.

MTL Group’s move into administration was blamed on the loss of a large overseas defence contract and cash flow problems. In December, the company made around 35 to 40 redundancies.

Source – Sheffield Telegraph

voda 22 februari 2015 17:00

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BHPB chief defies cutback push

Mr Andrew Mackenzie CEO of BHP Billiton has blasted panicked calls for a halt to Pilbara iron ore production growth to prop up prices of the steelmaking raw material.

Mr Mackenzie said that restricting supply as controversially suggested by West Australian Premier Mr Colin Barnett and Mr Andrew Forrest’s Fortescue would be a futile exercise. The only certain effect of stalling production will be to reduce Australian exports.

Reflecting his deep concern with calls for restricting production growth in iron ore, Mr Mackenzie warned there were potential global free trade implications. Less supply from a dependable supplier such as Australia could be seen to possibly generate geopolitical instability, leading to a lower level of world economic growth.

He said that “I strongly believe that the world will be best served by a sustainable supply of commodities at a fair price and that capital resources should be directed towards the most efficient sources of that production in a manner that the world gets them as cheaply as possible, in terms of cost, and with the greatest environmental performance and the smallest environmental footprint.’’

Mr Mackenzie said that any growth you see from us is predominantly by completing investments and making the investments that we have made even more productive. Anything less than that would mean giving up revenue, giving up royalties, giving up the stimulation to employment and innovation that are so important for this country’s future.

He said that “If there had been a pullback of production out of the major Australian producers, it’s very questionable as to whether that would have had any impact on the downward drift in the price. And that would have simply ceded production to other countries, who would’ve taken up that slack.”

Mr Mackenzie said that Australia had become more investable, thanks to the abolition of the mining and carbon taxes. The most important agenda now for us is to use that as a basis to continue to improve the international competitiveness of the Australian resources and therefore, mining industry. And much of that is down to the leadership we provide.’

He would not be drawn on the uncertain political environment in Canberra and what that meant for the pace of economic reform. But he emphasised the importance to business confidence of regulatory certainty and political stability.

He also outlined an agnostic approach on the nuclear power debate reignited by South Australia with its move to establish a royal commission into the potential for it to become a reality in the state. He said ownership of the Olympic Dam deposit in that state’s outback, the world’s biggest uranium deposit, did not alter that stance.

Source - Business Spectator

[verwijderd] 22 februari 2015 17:00

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&Voda.. Moet ik dit omvatten als positief nieuws??

voda 22 februari 2015 17:01

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Rio and BHP set iron ore production records

Rio Tinto and BHP Billiton continue to report record iron ore production from their mines in the Pilbara region of Western Australia.

Rio Tinto’s Pilbara operations produced 280.6 million tonnes for the full year of 2014, 12% higher than in 2013. BHP Billiton produced 124 million tonnes (100% basis) during its fiscal first half ending December 30th 2014, a 15% increase over the comparable prior year period.

Rio Tinto is developing a fourth phase of expansion to 360 million tonnes per year at its Pilbara operations and reported that the project was about 80% complete as of year end 2014 with all major rail, marine and wharf works in place and on track for delivery by the end of the H1 of 2015.

Approximately 40 million tonne per year of brownfield expansions are under way at Rio Tinto’s Pilbara mines to feed the expanded infrastructure capacity. As a result, the company is forecasting that its production from the Pilbara will increase to 330 million tonnes in 2015.

BHP Billiton is forecasting production of 245 million tonnes from its Western Australia operations for its full fiscal year ending June 30th 2015. Expanded production is being driven by the ongoing ramp up of the 35 million tonnes Jimblebar mine, which delivered its first production in the third quarter of 2013.

Source - www.e-mj.com

voda 22 februari 2015 17:02

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quote:
snuf13 schreef op 22 februari 2015 17:00:
&Voda.. Moet ik dit omvatten als positief nieuws??

Denk wat je wilt.

[verwijderd] 22 februari 2015 17:58

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En wat is jouw visie??

[verwijderd] 22 februari 2015 22:38

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Voda'tje heeft geen visie , kan alleen een beetje knippen en plakken.!

[verwijderd] 22 februari 2015 23:35

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Lijkt er wel behoorlijk op!!

voda 23 februari 2015 16:42

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Steel project in Sur to be ready by early 2018

Times of Oman cited Mr PT Sivarajan, director of operations at Sun Metals, which is developing the project as saying that a 2.5 million tonne per annum-steel plant is expected to start operation by early 2018 in Sur.

Mr Sivaraj said that "If everything goes well, the plant will be operational in the first quarter of 2018. In the absence of a port to handle a 2.5 million tonnes steel plant in Sur, a proSper logistic study is to be carried out to make a decision on site location.”

The company has done a lot of work in Sur and it is the favourable site for the project. However, the company will be forced to move to Duqm if mid sea discharging is not considered. The plant will produce TMT bars, which are used in construction industry, and also value added special quality round bars for engineering and automobile applications.

The proposed products include 1.2 million tonnes of commercial grade rebar for catering to Mena region in general and Oman in particular. In fact, 1.133 million tonnes of specialty steel for automobile industry in Mena region in particular and in European and global market. The Sur project will be the first special steel and TMT rebar production facility in the entire Middle East region, according to the promoters.

The pre engineering cost of the project is estimated in the region of USD 400 to USD 450 million and it has the lowest capital expenditure per tonne of finished product in the region. The project does not have to pay taxes and duties in Oman.

For this type of volume, a jetty and mid-sea unloading practice has to be adopted, similar to Dolvi Steel Plant of Jindal. An additional capital expenditure of USD 20 million will be needed for the company, if Public Establishment for Industrial Estates (PEIE) does not set up a jetty at Sur. This additional USD 20 million will be taken care in contingency provided in the capital expenditure.

Source – Times of Oman

voda 23 februari 2015 16:43

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Masteel has seen steady income from its new rolling mill plant

MALAYSIA Steel Works Bhd (Masteel) expects an additional MYR 400 million in sales per annum from its new rolling mill plant, which is built next to its meltshop in Klang, Selangor.

The expansion represents a 300,000 tonne increase in its downstream segment, which provides better margins for the company. Currently, its downstream segment is served by its rolling mill plant in Petaling Jaya, which has a capacity of 450,000 tonnes.

By increasing its downstream production, Masteel’s profit margin is expected to improve. Prior to the expansion, all the company’s downstream production was handled by its plant in Petaling Jaya.

It was able to produce about 700,000 tonnes upstream, but if its downstream segment was to add value, then Masteel will see not only margin enhancement but also economies of scale.

Mr Datuk Seri Tai Hean Leng MD of Masteel said that “Previously, half of the steel billets we produced were sent to the Petaling Jaya rolling mill for enhancement, but once the expansion is completed, we will be able to reap better synergies between upstream and downstream production.”

Mr Tai said that the expansion of the downstream segment was planned about two years ago. The company has allocated RM100mil for the growth in its downstream activities, which will see its steel bar production increase by 67% to 750,000 tonnes. The expansion is to serve the demand. We realise that our supply is below demand and it will also provide economies of scale once the plant expansion is completed.

An analyst who tracks the company estimates that the downstream segment is able to provide margins that could double those of the upstream. However, the industry faces the biggest challenge from dumping activities by China companies. Without an efficient policy, steel players will suffer even though there is a quality disparity.

Mr Tai said that “We are confident the Government will decide on the appropriate policies to help our industry. Its products have a differentiation in terms of quality. Masteel’s products go through stringent processes so that they meet the construction industry’s requirements, while it also has an advantage due to the strategic location of its Petaling Jaya plant.”

He said that “It is all about the utilisation rate of plants, proximity to the market and the technology employed. Through 40 years of honing our skills, we have become highly specialised in the manufacturing of high tensile steel bars.”

Source – The Star

voda 23 februari 2015 16:44

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Ternium announces financial and operational result for Q4 and FY 2014

Ternium SA announced its results for the Q4 and full year period ended December 31st 2014.

The financial and operational information contained in this press release is based on Ternium SA’s operational data and consolidated financial statements prepared in accordance with International Financial Reporting Standards and presented in US dollars and metric tonnes.

EBITDA of USD 300.9 million in the Q4 2014, USD 122.1 million lower than in the third quarter 2014, mainly reflecting lower prices and non recurring USD 57.5 million income recognition in the Q3 2014, related to an insurance recovery in Ternium's Argentine subsidiary Siderar.

Loss from non consolidated companies of USD 27.5 million in the Q4 2014, mainly as a result of an impairment of USD 196.4 million to Usiminas carrying value partially offset by USD 188.9 million gain related to the determination of purchase price allocation in connection with the October 2014 acquisition of additional shares of Usiminas from PREVI.

Earnings per American Depositary Share 3 of USD 0.31 in the fourth quarter 2014, a decrease of USD 0.26 per ADS compared to the third quarter 2014 mainly due to lower operating income and a higher effective tax rate, partially offset by lower results attributable to non-controlling interest in Siderar and better financial results.

Capital expenditures of USD 108.7 million in the Q4 2014, slightly up from USD 94.8 million in the third quarter 2014. USD 249.0 million payment for the above mentioned acquisition of additional ordinary shares of Usiminas. Net debt position of USD 1.8 billion at the end of December 2014, slightly up from USD 1.7 billion at the end of September 2014.

Ternium's operating income in the fourth quarter 2014 was USD 191.3 million, down sequentially by USD 123.3 million, mainly due to lower operating margin4 and a non recurring USD 57.5 million insurance recovery in the third quarter 2014. Operating margin decreased sequentially mainly as a result of USD 35 lower steel revenue per tonne, partially offset by USD 6 lower steel operating cost per tonne. Steel revenue per ton decreased mainly as a result of lower steel prices in Ternium's main steel markets. The decrease in steel operating cost per ton included lower purchased slabs costs and higher energy costs.

Compared to the fourth quarter 2013, the company's operating income in the fourth quarter 2014 decreased by USD 104.3 million, mainly as a result of lower operating margin, partially offset by higher shipments. Operating margin decreased YoY in the Q4 2014 mainly as a result of a USD 31 decrease in steel revenue per ton and a USD 20 increase in operating cost per tonne. Steel revenue per ton decreased mainly as a result of lower steel prices in the Southern Region and Other Markets, partially offset by a better product mix in Mexico. The increase in operating cost per ton included higher purchased slabs and energy costs.

Net income in the Q4 2014 was USD 60.1 million, a decrease of USD 100.1 million compared to net income in the third quarter 2014 mainly due to the above mentioned lower operating income and a higher effective tax rate, partially offset by improved financial results. The higher than normal effective tax rate in the Q4 2014 was mainly related to the non cash effect on deferred taxes of the significant depreciation of the Mexican peso and the Colombian peso against the US dollar during the period.

Relative to the prior year period, net income in the Q4 2014 decreased by USD 111.0 million. The YoY decrease included the above mentioned lower operating income, higher than normal effective tax rate in the Q4 2014 and lower results from non consolidated companies, partially offset by improved financial results.

Summary of Full Year 2014 Results;

Earnings per ADS7 of USD 2.30 in 2014, similar to that in 2013 as slightly lower operating income was offset by lower net financial expenses. Capital expenditures of USD 443.5 million in 2014, 50% lower than capital expenditures of USD 883.3 million in 2013.

Operating income in 2014 was USD 1.1 billion, slightly lower than operating income in 2013. Steel shipments increased by 647,000 tonnes YoY in Mexico, and decreased a combined 254,000 tonnes in the Southern Region and Other Markets. Operating margin decreased slightly reflecting USD 14 lower steel revenue per ton, partially offset by USD 3 lower steel operating cost per tonne.

A decrease in steel prices in the Southern Region was mostly offset by higher steel prices and a higher value added product mix in Mexico. Net income in 2014 was USD 588.8 million, relatively stable compared to net income in 2013, mainly as a result of the above mentioned slightly lower operating income, offset by an improved financial result.

Usiminas;
As of December 31, 2014, Ternium performed an impairment test of its investment in Usiminas and subsequently wrote down such investment by USD196.4 million. The main changes to the Company's previous estimation of its investment's value in use that led to this impairment were related to expectations of a weaker industrial environment in Brazil, and consequently steel demand, as a result of worsening economic activity, as well as a significant downturn in international prices of iron ore and steel, both of which led to diminished cash flow expectations.

In addition, during the fourth quarter 2014 Ternium applied its purchase price allocation procedures in connection with its October 2014 acquisition of additional shares of Usiminas from PREVI. The Company determined a higher value of net assets at fair value versus book value and accordingly, recognized a gain of USD 188.9 million.

Annual Dividend Proposal;
Ternium's board of directors proposed that an annual dividend of USD 0.09 per share (USD 0.90 per ADS), or approximately USD 180.4 million in the aggregate, be approved at the company's annual general shareholders' meeting, which is scheduled to be held on May 6th 2015. If the annual dividend is approved at the shareholders' meeting, it will be paid on May 15th 2015, with record date of May 12th 2015.

Source – Strategic Research Institute

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