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Auto grade steel imports to be exempted from BIS norm – Report

Reuters citing government officials reported that Indian government is likely to delay the implementation of quality standards on auto-grade steel imports after local carmakers sought an exemption to avoid any disruption to production. As per report, the exemption on auto grade steel imports would be for six months

New rules, due to come into effect on Friday, will require all steel sold in India to be certified by the Bureau of Indian Standards. However, the country's car industry body said it sought more time to complete the lengthy documentation process so that stocks do not run out.

Source : Reuters
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Shougang Tonggang steel workers in Jilin launch protest for unpaid wages

Global Times reported that a group of workers from the largest steel enterprise in Northeast China's Jilin Province have staged a protest to demand payment of wages. In a phone call with the Global Times on Wednesday, an anonymous member of Shougang Tonggang Group's staff confirmed that a protest has occurred. The staff member said that there had also been a demonstration on Tuesday, but refused to reveal further information.

An official in the steel group's administration office refused to offer any comment on the incident over the phone when reached by the Global Times.

Shougang Tonggang Group produces nearly 7 million tons of steel annually and is a major steel enterprise in the central government's drive to revive the former heavy industry hub in Northeast China.

The Chinese government has initiated preparations for laying off and resettling an estimated 1.8 million workers in the coal and steel sectors in its drive to cut industrial overcapacity and restructure the Chinese economy. On March 5, Chinese Premier Li Keqiang said in an annual government work report that the central government will allocate 100 billion yuan ($15.34 billion) to the relocation and reassignment of workers, Xinhua reported.

Source : Global Times
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Enhanced infra spends to improve domestic steel demand - Mr PK Singh SAIL

Financial Express reported that as the Indian steel industry is passing through one of the most challenging times, the newly-appointed SAIL chairman Prakash Kumar Singh has his task cut out. In an interview with Surya Sarathi Ray of FE, he speaks of the company’s strategies to counter competition and future plans.

Q - The steel industry is passing through a difficult phase. How long do you think this cycle will continue? Which are the factors that have the potential to lift the sector from the current downturn?

A - The global steel industry is facing challenging times mainly due to the over capacity created by world’s largest steel producer, China and its consumption slowdown due to economic restructuring. China, despite contracting its output by 2.3%, remained an aggressive exporter with exports of more than 112 MT in 2015 (more than the total production of India), registering 20% growth over 2014. India has been one of the major destinations for dumping of surplus steel by China. Although domestic consumption in India has registered annual increase of 4.2% in 2015, the expansion in demand was largely met by imports which jumped to 9.3 MT registering a growth of 24.1%. Under such circumstances, recent favorable policies announced by the government and its concerted efforts to enhance infrastructure spends in viable sectors is expected to improve domestic demand and provide some impetus to the Indian steel industry in the coming financial year.

Q - SAIL has been doing badly over the last few quarters. Are better days near?

A - The effects of demand-supply imbalance in global steel industry primarily driven by the slowdown in steel consumption in China after three decades of growth has had an adverse impact on the performance of steel producers across the world. Top and bottom line of the Indian steel producers have also been hit by global factors. SAIL also had to suffer a net loss for the third quarter of FY16, primarily due to a 24% decline in net sales realisations over the corresponding period last year. In case of some of the products, the domestic steel companies are even unable to recover their cost of production. However with recent government support, prices have started to recover gradually.

SAIL is trying to reverse the trend by ensuring cost reduction and ramping up of production, which remains the prime focus of our activities.

India is emerging as a large economy and remains a bright spot for the world. Our country shows solid signs of handsome growth potential in coming years providing a base for comfortable consumption forecast. India’s per capita consumption at 59 kg is much below the global average of more than 216 kg and China’s more than 500 kg, which presents the domestic steel sector with enough room for growth. This, coupled with government’s thrust on infrastructure as well as on manufacturing will help in improving demand of steel intensive sectors and provide the much needed support for the domestic steel industry’s growth.

Q - How to tackle cheaper imports from China, Japan and Korea?

A - Cheap imports from China and countries exporting steel to India under various trade agreements have affected the domestic steel market, which has recorded steep decline in prices since August 2014. Chinese export prices fell by almost 50% during July, 2014 to December 2015 impacting steel prices globally.

Under such a scenario, Indian steel producers sought intervention of government to provide relief measures to domestic industry. Measures in the form of safeguard duty on HR Coils in last September and recently in the form of Minimum Import Price (MIP) imposed on February 5, 2016 on certain tariff lines are expected to provide temporary relief. Long term trade remedial measures in the form of anti-dumping and countervailing duty are required for preventing dumping of unfairly priced imports.

Q - Can you give us a tentative time-frame for the completion of your company’s ongoing capacity expansion programme? Will SAIL postpone its “Vision Document” programme aimed at reaching 50 MTPA hot metal capacity?

A - SAIL has invested more than R70,000 crore in its modernization and expansion programme including modernization of the mines. Our modernization and expansion programme is cost and energy-efficient and will usher in the state-of-the-art technologies for producing world class products with best in class quality of value added products. Most of our new facilities and mills have been operationalised and we are currently focusing on completing our balance modernization projects and ramping up our production from 13 MT to 20 MT saleable steel gradually.

Source : Financial Express
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SBI puts heat on loan defaulting men of steel - HT Report

Hindustan Times reported that State Bank of India, the lead lender in most consortiums and one of the most affected from the large corporate defaults seen recently, on Wednesday summoned the promoters of top steel companies, including Jindal Steel & Power Ltd, Bhushan Steel, Essar Steel, Visa Steel and Adhunik Metals to Mumbai, to conduct a rare review of loan repayments and explore possible options of bringing in strategic investors. The review, under the aegis of the joint lenders’ forum, was described as unprecedented by one of the promoters who attended the meeting.

A promoter said “Such meetings have happened in the past, too, but this time the urgency with which the meetings were convened and the frequency has not been seen before...meetings being scheduled one after the other and spread over 2-3 days. This time the banks are stressing on one thing - bring in an investor. This is not the way lenders should be interacting.”

It comes in the wake of the furore over the default by Kingfisher Airlines and promoter Vijay Mallya, who left for the UK even as the CBI and the Enforcement Directorate initiated investigations into possible fraud.

The meetings are in line with the strategic debt restructuring being done by banks and encouraged by the Reserve Bank of India (RBI), which has set the deadline of March 2017 for banks to clean their books of bad loans.

Source : Hindustan Times
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Brussel sneller in actie tegen dumpen staal
Jeroen Segenhout

Gisteren, 20:30

Update: gisteren, 22:19

Krantentitel: ‘Brussel komt sneller in actie tegen dumpen van staal’
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ik denk dat daarom de koers van AM zo lekker in de plus staat.... en dit soort berichten zullen er nog wel meer gaan komen, want de stalindustrie heeft steun nodig en die gaan ze krijgen......
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Dat wordt een gezellige handelsoorlog dan, hopelijk gaat dat Europese staal dan niet verwerkt worden in producten die geexporteerd worden.... Oh, wacht....
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Importheffing VS op staal uit IJmuiden

Gepubliceerd op 17 mrt 2016 om 17:21 | Views: 546

IJMUIDEN (AFN) - De Verenigde Staten hebben een voorlopige importheffing ingesteld op warmgewalst staal van Tata Steel uit IJmuiden, het vroegere Hoogovens. Dat heeft het bedrijf donderdag laten weten.

Woensdag bleek al dat het Amerikaanse ministerie van Handel onderzoekt of in Nederland geproduceerd staal in de VS is ingevoerd tegen dumpprijzen. Hetzelfde geldt voor gewalst staal uit Australië, Brazilië, Japan, Korea, Turkije en het Verenigd Koninkrijk. De definitieve onderzoeksresultaten worden begin augustus verwacht.

Tata Steel, de enige staalproducent met productiecapaciteit in Nederland, is naar eigen zeggen in gesprek met de handelsautoriteiten van de VS ,,om aan te tonen dat het niet gaat om dumping''.
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US DOC finds dumping on imports of Hot Rolled flat steel from Australia, Brazil, Japan, Korea, Netherlands, Turkey and UK

On March 15, 2016, the Department of Commerce (Commerce) announced its affirmative preliminary determinations in the antidumping duty (AD) investigations of certain hot-rolled steel flat products from Australia, Brazil, Japan, Korea, the Netherlands, Turkey, and the United Kingdom.

In the Australia investigation, mandatory respondent BlueScope Steel Ltd. received a preliminary dumping margin of 23.25 percent. All other producers/exporters in Australia received a preliminary dumping margin of 23.25 percent.

In the Brazil investigation, mandatory respondents Companhia Siderurgica Nacional and Usinas Siderurgicas de Minas Gerais (Usiminas) received preliminary dumping margins of 33.91 percent and 34.28 percent, respectively. All other producers/exporters in Brazil received a preliminary dumping margin of 33.91 percent. The rate for Usiminas was calculated using total adverse facts available because the company did not respond to Commerce’s questionnaire.

In the Japan investigation, mandatory respondents JFE Steel Corporation and Nippon Steel & Sumitomo Metal Corporation received preliminary dumping margins of 6.79 percent and 11.29 percent, respectively. The rates for both companies were calculated using partial facts available and adverse facts available, as they did not provide Commerce with certain requested information. All other producers/exporters in Japan received a preliminary dumping margin of 10.24 percent.

In the Korea investigation, mandatory respondents Hyundai Steel Company and POSCO received preliminary dumping margins of 3.97 percent and 7.33 percent, respectively. All other producers/exporters in Korea received a preliminary dumping margin of 5.65 percent.

In the Netherlands investigation, the mandatory respondent Tata Steel IJmuiden B.V. received a preliminary dumping margin of 5.07 percent, which was calculated using partial adverse facts available because the company failed to provide certain requested information. All other producers/exporters in the Netherlands received a preliminary dumping margin of 5.07 percent.

In the Turkey investigation, mandatory respondents Colakoglu Metalurji A.S./Colakoglu Dis Ticaret A.S and Ere?li Demir ve Çelik Fabrikalar? T.A.?./Iskendrun Demir ve Çelik T.A.?. received preliminary dumping margins of 7.07 percent and 5.24 percent, respectively. All other producers/exporters in Turkey received a preliminary dumping margin of 6.82 percent.

In the United Kingdom investigation, the mandatory respondent Tata Steel U.K. Ltd. received a preliminary dumping margin of 49.05 percent. All other producers/exporters in the United Kingdom received a preliminary dumping margin of 49.05 percent.

As a result of the preliminary affirmative determinations, Commerce will instruct U.S. Customs and Border Protection to require cash deposits for covered imports of hot-rolled steel flat products based on these preliminary rates.

Critical circumstances were alleged with respect to imports of hot-rolled steel flat products from Australia, Brazil, Japan, and the Netherlands. On December 9, 2015, Commerce preliminarily found that critical circumstances exist with respect to certain exporters from Brazil and Japan. Where critical circumstances were found, CBP will be instructed to retroactively impose provisional measures on entries of hot-rolled steel flat products effective 90 days prior to publication of the preliminary determinations in the Federal Register. Critical circumstances were not found with respect to imports of hot-rolled steel flat products from Australia and the Netherlands.

The petitioners for these investigations are AK Steel Corporation (OH), ArcelorMittal USA LLC (IL), Nucor Corporation (NC), SSAB Enterprises, LLC (IL), Steel Dynamics, Inc. (IN), and United States Steel Corporation (PA).

The products covered by these investigations are certain hot-rolled, flat-rolled steel products, with or without patterns in relief, and whether or not annealed, painted, varnished, or coated with plastics or other non-metallic substances. The products covered do not include those that are clad, plated, or coated with metal. The products covered include coils that have a width or other lateral measurement (“width”) of 12.7 mm or greater, regardless of thickness, and regardless of form of coil (e.g., in successively superimposed layers, spirally oscillating, etc.). The products covered also include products not in coils (e.g., in straight lengths) of a thickness of less than 4.75 mm and a width that is 12.7 mm or greater and that measures at least 10 times the thickness. The products described above may be rectangular, square, circular, or other shape and include products of either rectangular or non- rectangular cross-section where such cross-section is achieved subsequent to the rolling process, i.e., products which have been “worked after rolling” (e.g., products which have been beveled or rounded at the edges). For purposes of the width and thickness requirements referenced above.

Source: Strategic Research Institute
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Essar Steel announces turnaround

Essar Steel announced that the all round efforts of the company in various facets of its operation like production, sales & marketing and cost improvements have resulted in an excellent operational turnaround and resurgence of Essar Steel. The production has doubled since November and is currently operating at 70% capacity utilisation. This has resulted in significant improvement in EBIDTA margin which has improved to 18%-20% from 5% in November last year. Essar Steel is set to achieve a capacity utilization of 80%-85% in the financial year 2016-17

Essar Steel has completed all the upstream and downstream projects at a competitive cost to achieve 10 MTPA and all units have become operational. The availability of gas at economic price has enabled Essar Steel to operationalise the gas based DRI units as well. This is further aided by the captive gas from COREX and Blast furnace.

Mr Dilip Oommen, MD & CEO, said “Our efforts over the last few months in strengthening our operations, supported by stable markets and encouraging response from our customers, has given us the confidence to aim at full production in the next fiscal. It is heartening that we are able to achieve this while maintaining higher operating margins. We believe it is comforting to all our stakeholders.”

The gas price has fallen to USD 6/mmbtu from USD 15/mmbtu. Lower gas price and other input costs have enabled the company to contain its costs and improve margins. Essar Steel expects to restart all the DRI units in the next fiscal.

The customer outreach initiative undertaken by the company has facilitated it to sell not only its production but also enable it carry one of the lowest finished goods inventory in the industry at 15 days leading to better working capital management. The multi modal transport adopted by Essar Steel enabled the company get better price in its major markets of Gujarat and Maharashtra.

Essar Steel has tied up all the critical inputs required for steel making. The Company has recently won an iron ore mine in Odisha through auction. This mine has a deposit of 99 million tonnes. This mine will meet 50% of annual iron ore requirement of Paradeep pellet facility.

The pellet plants at Paradeep and Vizag are operational and ensure consistent supply of pellets to the steel plant. The abundant availability gas at economic cost has further supported Essar Steel’s efforts to ramp up capacity.

The introduction of MIP and BIS standards by the Government of India has curbing imports of steel at predatory prices leading to containing oversupply situation and better sales realization in the Indian market.

Source : Strategic Research Institute
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India extends safeguard duty on hot rolled steel imports till March 2018

India's Directorate General of Safeguards in the Central Board of Excise and Customs has recommended extending the duty on hot-rolled flat products of non-alloy and other alloy steel in coils of a width of 600 mm or more until March 2018. Its notification on March 15th 2016 said increased imports of the product had caused serious injury to domestic producers and the recommendation was in the public interest.

At the end of 101 page notification No D-22011/26/2015/Pt-III Dated 15th March 2016 DGS recommended that

A. The increased imports of ‘PUC’ into India, have caused serious injury and are threatening to cause serious injuries to the domestic producers of "PUC" and it will be in the public interest to impose safeguard duty on imports of "PUC" into India in terms of Rule 12 of the Customs Tariff (Identification And Assessment of Safeguard Duty) Rules’97, for a period of two Years and Six months. This period shall be computed from the date of levy of provisional safeguard duty vide notification no.2/2015-Cus (SG) dated 14.09.2015. Considering the average cost of sales of “PUC” b y the domestic producer after allowing a reasonable return on cost of sales, safeguard duty as indicated below, which is considered to be the minimum required to protect the interest of domestic industry on PUC being imported falling under sub- heading 7208 and 72253090 of the First Schedule of the Customs Tariff Act, 1975, is recommended to be imposed.

Year Safeguard duty recommended Period

First Year Safeguard duty @ 20% ad valorem (minus Anti-dumping duty, if any) 14.09.2015 to 13.09.2016

Second Year Safeguard duty @ 18% ad valorem (minus Anti-dumping duty, if any) 14.09.2016 to 13.03.2017

Second Year Safeguard duty @ 15% ad valorem (minus Anti-dumping duty, if any) 14.03.2017 to 13.09.2017

Third Year Safeguard duty @ 10% ad valorem (minus Anti-dumping duty, if any) 14.09.2017 to 13.03.2018



B. As the imports from developing nations except China PR and Ukraine do not exceed 3% individually and 9% collectively, the import of product under consideration originating from developing nations except China PR and Ukraine will not attract Safeguard Duty in terms of proviso to Section 8B (1) of the Customs Tariff Act, 1975. Turkey vide Notification No. 19/2016-Customs (N.T.) dated 05.02.2016 has been recognised as a developing nation. Therefore, Imports of the product under consideration originating from Turkey will not attract Safeguard Duty w.e.f. 05.02.2016

The product under consideration “PUC” is “Hot-rolled flat products of non-alloy and other alloy Steel in coils of a width of 600 mm or more” classifiable under Chapter 72 of the Customs Tariff Act, 1975, under tariff heading 7208 and tariff item 72253090. The applicant has claimed that these products are not further worked than hot-rolled and are flat products of iron, alloy or non-alloy steel, in prime or non-prime condition having ‘as-rolled’ edge or ‘trimmed’ edge or ‘slit’ edge. These products may be pickled or non-pickled (with or without skin-pass or tempering), slit or non-slit and having nominal width of greater than or equal to 600mm. These products may be as-rolled or thermo-mechanically rolled or thermo- mechanically controlled rolled or controlled rolled. These products may have patterns in relief derived directly from rolling. These products may have been subjected to various processing steps like pickling, oiling, rewinding, temper rolling, heat treatment, etc. The following are not included in the scope of the product under consideration:
a) Hot-rolled flat products of steel with nominal width less than 600mm
b) API grade steel
c) Silicon electrical steel
d) Hot-rolled flat products of steel of spring steel quality
e) Hot-rolled flat products of steel which are electrolytically plated or coated with zinc
f) Hot-rolled flat products of steel otherwise plated or coated with zinc
g) Hot-rolled flat products of stainless steel

Source : Strategic Research Institute
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EC takes action to preserve sustainable steel jobs and growth in Europe

The European Commission has presented a Communication “Steel: Preserving sustainable jobs and growth in Europe” setting out how the European steel sector can overcome its short-term and long-term challenges with the support of Member States and the EU institutions. IEc said “A joint effort is needed to overcome these serious challenges fuelled by global overcapacity, a dramatic increase of exports and an unprecedented wave of unfair trading practices. High energy costs and changing market conditions require energy-intensive industries to adapt and innovate to ensure their long-term competitiveness and sustainability.”

Vice-President Jyrki Katainen, responsible for Jobs, Growth, Investment and Competitiveness, said "We must do more to help the steel sector and other energy-intensive industries adapt, innovate and compete on the basis of quality, cutting-edge technology, efficient production and a highly skilled workforce. We now have a record level of anti-dumping measures on steel products in place and the Commission is determined to restore a global level playing field. We will take steps to further streamline our procedures but Member States must also act together and urgently adopt our legislative proposal to modernise EU trade defence instruments and make fairer trade a reality."

The Commission is already acting with determination to support the steel industry in overcoming the short-term challenges. With the Communication "Steel: Preserving sustainable jobs and growth in Europe" the Commission announces new short-term measures that will strengthen the EU’s defence against unfair trade practices, as well as longer-term action to guarantee the long-term competitiveness and sustainability of energy-intensive industries like steel:

Defence against unfair trade practices
The Commission is already imposing a record number of measures to offset the detrimental effect of dumping, with 37 anti-dumping and anti-subsidy measures in place on steel products (16 of which on steel imports from China). The Commission will further accelerate the adoption of anti-dumping measures and stands ready to make additional proposals to speed up the overall procedure and improve the efficiency of the current system. It is high time to back up rhetoric with action: a swift adoption by the co-legislators of the Commission proposal from 2013 to modernise trade defence instruments is crucial to streamline procedures and increase their speed and effectiveness. Notably the removal of the so-called lesser duty rule in certain circumstances would allow imposing higher anti-dumping duties. The Commission will also propose a prior surveillance system on steel products. Prior surveillance measures are part of the EU's existing safeguard instrument and can be introduced when import trends threaten to cause injury to European Union producers.

Tackling the causes of global overcapacity
In addition to measures aiming to address global overcapacity, the Commission is tackling the underlying causes of the problem at bilateral and multilateral level. This is being done with the EU's main partners (China, Japan, India, Russia, Turkey and the United States) as well as in relevant international fora such as the OECD and the WTO. Just last week, bilateral meetings were held with China and Japan. The Commission will further reinforce this international work, in particular in the context of the G20.

Investing in future solutions and technologies for a more competitive industry
The long-term competitiveness of energy-intensive industries depends on their ability to develop breakthrough technologies in areas such as energy efficiency or carbon capture and utilisation. This requires more private and public investment in innovation, research and new technologies. At EU level, various funds are available to support the steel industry on its modernisation path. These funds include the €315 billion European Fund for Strategic Investments (which has already supported the modernisation of a steel factory), EU Structural and Investment Funds and the EU research funding programme Horizon 2020. Today's Communication lists the various options clearly. Industry should make full use of these possibilities.

Modernising the steel industry by investing in people
Maintaining a modern and competitive steel industry requires a skilled and well-trained work force. With the forthcoming New Skills agenda, the Commission will aim to build a shared commitment to invest in people and their skills in close cooperation with Member States and social partners. The European Globalisation Adjustment Fund and the European Social Fund are available to support workers and their local communities, mitigating adverse social consequences in the context of relocation.

Focused policies in areas like competition, energy, emissions trading and the circular economy will help the steel industry to thrive
Ourrevised state aid rules provide ample opportunities for Member States to support cross-border technology, research and innovation and renewable energy schemes. The proposed revision of the emission trading system, currently being discussed by the co-legislators, should be helpful for the steel sector and ensure that it gets an appropriate level of support in the context of the emissions allowance distribution. Commission policy in the areas of climate change and the circular economy are also relevant in this context.

The steel industry in Europe is world-leading in certain steel product segments, represents 1.3% of EU GDP and provided around 328,000 jobs in 2015. The steel industry is also an important source of indirect employment, since it plays a significant role for many other industrial sectors such as the automotive industry. Despite the potential of the European steel sector and the significant efforts made to innovate and modernise, its competitive position on the global steel market has deteriorated in recent years. Excess production of steel in third countries such as China has increased exports, depressed prices, and given rise to an unprecedented wave of unfair trading practices, distorting the global level playing field. The current challenges for the steel industry are serious, but they can be overcome if all players work together in a spirit of sincere cooperation. The Commission will continue to monitor the situation closely and stands ready to put forward additional measures, as necessary. There is no time to lose to preserve sustainable jobs and growth in Europe.

Source : Strategic Research Institute
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Klinkt alsof iedereen wereldwijd tarif fees aan haar broek krijgt, ben benieuwd of iemand dat bij hun klanten kan "dumpen". Per saldo betaalt gewoon iedereen meer douane rechten. Lekker dan. Maar dat is eigen aan trade wars. Iedereen verliest, enkel de overheid harkt.
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23,000 people signed petition to save Teesside steel gets UK government response

Published on Fri, 18 Mar 2016

Gazette Live reported that the UK government has been blasted for saying it is determined to ensure a viable future for Teesside steelmaking, five months after the former Redcar SSI site closed. The Conservative Government’s pledge comes in response to a petition created last September as the SSI crisis unfolded.

In October - the month SSI UK went into liquidation and the Redcar steelworks closed - it passed through the 20,000 signature mark, therefore forcing the Government to respond. With the number of signatories currently more than 23,000, the Government has now replied. And the first line of that response states: “The Government is determined to ensure a viable future for Teesside Steelmaking and the UK steel industry by acting on cheap imports, energy costs, procurement, and emissions regulations.”

The response, from the Department For Business, Innovation and Skills, says the UK steel sector is facing “unparalleled global conditions” and details its efforts to deliver on five key “asks”: lower energy costs, EU emissions regulations, support for UK steel in major construction projects, unfair international trading practices and business rates.

The petition, created on the official Parliament petition page by Zoe Burley, was headed “Please help keep Teesside steelmaking open.” It stated: “Without Steelmaking, Teesside as a whole will become a ‘ghost town’ with so many hard workers out of jobs and smaller companies struggling due to the major loss. We need your help to save the people of Teesside - because it’s not just the workers who will suffer. It’s all of us. Is the Government doing enough to support the British steel industry?”

When a petition hits 100,000 then the issue will be debated in Parliament.

The deadline to sign the steelworks petition is March 25.
Source : Gazette Live

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Lay Offs - Evraz NA – 450 jobs to go at Pueblo

Denver Post reported that roughly 450workers at Evraz North America's steel mill in Pueblo, or just under half the site's workforce, will be temporarily idled as commodity markets continue their downturn, the company announced Thursday. The idling will begin on Saturday and span two to three weeks, according to Evraz. Workers in the steelmaking and rail mill operations will be impacted.

Russia-headquartered Evraz said it continues to be the largest manufacturer of rail steel in North America, with roughly 1050 employees at its Pueblo mill alone.

Earlier this month, Evraz shut down its seamless pipe unit in Pueblo, slashing some 60 jobs. The steel producer blamed lagging oil and gas drilling and an ongoing influx of steel imports to the U.S. from foreign producers.

The mill began scaling back the pipe operation last year, announcing a temporary layoff of up to 200 workers. Though some of those positions were later restored, Evraz has been decreasing output since.

The idling also come a month after Evraz announced plans to indefinitely shut down its pipe unit in Portland, Ore.

Source : Denver Post
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Lay Offs - US Steel Košice – 20 jobs to go in administration and management

Spectator reported that Kosice based company US Steel will cut more than 20 jobs in administration and management due to the prevailing situation on the steel market. The company’s spokesperson Ján Ba?a did not specify how many people will lose their job but said “The overall tally of employees affected will hinge also on production and business conditions and needs.”

According to the Sme daily, the company has offered these people jobs in production.

US Steel Košice says the decision was inspired by the situation in global steel production. It said “Particularly in the recent six months, we’ve recorded a massive rise of imported products at extremely low, dumping prices.This development prompted the company management to slim down its organisational management and administration structure.”

In addition to the abolished 20 jobs, a further 85 employees will voluntarily leave US Steel in the course of the year. They will receive a severance payment for 10 months, amounting to some EUR 19,000

Source : Spectator
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Change in the Supervisory Board of thyssenkrupp AG

Dr Sabine Maaßen has stepped down as member of the Supervisory Board of thyssenkrupp AG for personal reasons with immediate effect. Dr. Maaßen joined the thyssenkrupp Supervisory Board as representative of the IG Metall trade union in 2011; in January 2014 she was elected Vice Chairwoman.

She will be succeeded as IG Metall representative by Tanja Jacquemin. The court appointment is to be made shortly. Ms. Jacquemin is head of the Company Policy and Codetermination Department at IG Metall.

A proposal will be made to the Supervisory Board to elect Markus Grolms (member since 2009) as the new Vice Chairman of the Supervisory Board.

Source : Strategic Research Institute

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ISA welcomes extension of safeguard duty on HR steel

Press Trust of India reported that Indian Steel Association has welcomed Indian government move to extend the Safeguard Duty of up to 20 per cent on some steel products for two years against cheap imports will aid the industry's recovery

Welcoming the step, ISA Secretary General Mr Sanak Mishra said the timely action of imposition of safeguard duties will aid in the faster recovery of domestic steel producers and would work towards contributing to the success of the 'Make in India'.

Essar Steel Chief Commercial Officer Mr Shivramkrishnan said final findings and recommendations by the DGS validates the concern raised by the steel industry with regard to surge in import volume. This recommendation should enable a stable and fair playing field to the domestic industry.

The Directorate General of Safeguards (DGS) had on Wednesday recommended continuing of safeguard duties on HRsteel products till March 31, 2018.

Source : Press Trust of India
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Domestic prices will not rise to MIP level - Mr Rao of JSW Steel

The Hindu Business Line reported that Mr Seshagiri Rao MVS, Joint Managing Director and CFO, JSW Steel, spoke to BusinessLine on the impact of MIP on the industry.

Q - Has MIP helped the industry?

A - The Minimum Import Price is a very good step by the government. It covers 173 items and almost 80 per cent of current imports. We have to wait and watch to ensure there is no circumvention. The industry is concerned with the issue of revolving Letter of Credit (LC), which is a new term in the financial market. For instance, a LC is opened for $2 million, but one can revolve it 10 times, so the overall value is $20 million — validity is one-and-a-half years. That means, the three conditions that cannot be changed under MIP — value, validity and quantity — will be met and the import restriction can be circumvented. The clarification issued by DGFT (Directorate-General of Foreign Trade) is not clear on how revolving LCs will be tackled.

Q - User industry feels the government is favouring large companies with MIP...

A - Whether big or small, we are all part of the same supply chain. We are not each others’ enemies. Whatever imports are coming in, are not competitive. They are coming at prices lower than the exporting countries’ domestic prices or implied subsidies by their respective governments. If the government had not taken the action, steel industry in India would have been closed. After this, will the import prices — which are transient in nature — continue to remain same or increase? Several examples were given, such as what the chain has done in the case of bulk drugs and penicillin to kill the industry and increase prices 10-13 times. The government’s steps to moderate imports are in the interest of the whole industry.

Q - Why have steel exports been falling?

A - In FY’15, we exported 3 million tonnes; this year, it has halved to 1.6 million tonnes. There are many reasons for the industry to remain uncompetitive in the global market. The taxes paid by the industry are close to $35-40 per tonne. When we export, the benefit of duty draw-back is $6-8 a tonne. If the taxes are so high, how can we compete with China? Same is the case with logistics. If I have to send my material from Bellary plant to Bengaluru, I pay ?1,200 a tonne. Whereas, it will cost much less if I bring iron ore from Australia to India. So, there are lot of imbalances that are pushing up the cost. In India, the costs and taxes are very high. These are the issues both the user industry and steel companies should focus on.

Q - How much can the steel prices go up after MIP?

A - A lot of eyebrows went up when the MIP was fixed at $445 a tonne. This is the price at which HR coils are sold by Japanese and Koreans companies in their domestic markets. If you add implied subsidies, the Chinese prices will reach this level. This price was arrived at after imposing safeguard duty. In India, the market forces will determine the prices. In my view, it is unlikely that prices will move up to the MIP-level unless supply-demand dynamics change with robust demand. Again, rupee-dollar will play a major role. Technically, Japanese and Korean companies are making money only because of their currency advantage.

Q - What is the difference between domestic and international prices?

A - While making a comparison, we have to exclude the taxes. Normally, people pick up the selling price of ?32,000-a-tonne, which includes excise, VAT and transportation cost. Indian steel has a premium of ?500-1,000-a-tonne over imports. If somebody wants to import, he is taking a dollar risk. If you consider the dollar volatility, the premium for forward contract is 7 per cent. So the premium reflects the currency risk; the cost involved to open LCs three months in advance and the working capital gets tied up as they have to import in large lots. If you assign all these costs, then the premium of at least ?1000-a-tonne is justified.

Q - Why did the government give priority to MIP on steel, against aluminium?

A - It is all data driven. We collected numbers from various sources and presented it to the government, for the past several months. Collecting data is a tedious task. Data released by the DGFT comes with a three-month lag. So we collected data from the ports directly. We moved for safeguard duty, anti-dumping duty and MIP. Based on our own estimate, the steel industry has suffered a loss of ?12,000-15,000 crore in the third quarter alone, just because of imports. The Chinese Steel Association has said its steel companies are losing $11 billion at the operating level, for the past 11 months. It clearly shows nobody is making money.

Source : The Hindu Business Line
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