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Tata Steel to go slow on 2nd phase of Kalinagnagar plant – MD

The Hindu reported that Tata Steel MD Mr TV Narendran said that Tata Steel is in no hurry to start work on the second phase of its six million tonne steel plant at Kalinganagar in Odisha. According to him, the company will look at future cash flow and demand for flat products before taking a call on expansion plans.

He told “The focus for us is to stabilise operations of the first phase of the Kalinganagar plant. The plant is expected to be fully operational in the next few months.”

He said “First, we have to assess the cash flows before deciding investments for the next phase of expansion of the plant. We will also have to take into account the future demand of steel.”

The first phase of the Kalinganagar plant will have a capacity of three million tonnes and the second phase will have a similar capacity. Currently, Tata Steel produces 10 mt from Jamshedpur; of which 7 mt are flat products, while three mt are long products. Post commissioning of the first phase of the Kalinganagar plant, Tata Steel’s total steel production capacity will go up to 13 million tonnes.

Source : The Hindu
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Delhi HC serves notice over MIP on plea from Steel Wires Manufacturers Association

Mint reported that the Delhi high court issued on Thursday notice to the Centre on a plea by lobby group Steel Wires Manufacturers Association against the government’s minimum import price on 173 steel products aimed at providing relief to local steel producers hurt by cheap imports. A bench comprising chief justice G Rohini and Jayant Nath sought responses within two weeks from the Director General of Foreign Trade, Ministry of Commerce and Ministry of Finance.

The association in its plea has questioned the jurisdiction of DGFT which issued a notification on 5 February imposing MIP on 173 steel products ranging between $341 and $752 per tonne.

The lawyer for the association told the court “Internationally, the prices of steel are low and the MIP under the notification is relatively higher. If I import steel under the MIP, I will be caught under the web of Foreign Exchange Management Act (FEMA), 1999 and other regulations.”

Source : Mint
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It is illegal to stop transport of ore in Goa now

Times of India reported that directorate of mines and geology, reacting to the illegal stoppage of transport of e-auctioned iron ore in some parts of Goa, has directed both the district magistrate and the police to act swiftly and sternly in the matter. Mines director Mr Prasanna Acharya, in a letter to both the north and south Goa district collectors, both north and south Goa superintendents of police (SP), captain of ports and SP traffic and said that illegal stoppage of transportation of mineral is in contravention of the MMDR Act and Goa (Prevention of Illegal Mining, Storage and Transportation of Minerals) Rules, 2013.

Stating that the apex court, in its judgement, has specifically directed the state government to strictly enforce the provisions of Goa Rules, 2013, he said, "As such strict enforcement of the Goa (Prevention of Illegal Mining, Storage and Transportation of Minerals) Rules, 2013, is not only the job of this department, but also the job of other line departments like district administration, police department, traffic police, captain of ports, etc.

In 2012, prior to mining being suspended in Goa, some people residing in the vicinity of the transportation route used to extort money from lease holders citing reasons like social cost, dust pollution, traffic jam, etc as at that time iron ore price was at its peak.

Howevre, post enforcement of Goa Rules, 2013, in order to protect the interests of those affected by transport of minerals, the apex court has directed leaseholders to pay 10 per cent of the sale price of minerals in the interest of sustainable development and intergenerational equity into Goa iron ore permanent fund.This money is to be utilized for the people of the state, including people residing in the vicinity of the lease or along the route minerals are transported, by way of infrastructure development.

Source : Times of India
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Brazil's Vale says iron ore output at risk due to licensing

Reuters reported that Brazilian miner Vale SA said on Thursday it could lose as much as 100 million tonnes of annual iron ore output in the southeastern state of Minas Gerais over the next three years due to pending environmental licenses.

The world's largest iron ore producer, in an email sent to Reuters, said licenses for 88 projects were still being analyzed. If they were not approved, consequent shutdowns would halve Vale's output in the state.

Production cuts could come as soon as the next few months, Vale said, as its 30 million-tonne-per-year Brucutu mine requires a license for a connected dam.

The details were first presented at a public hearing on Tuesday about the future of Vale in Minas Gerais, where the company has its historic roots.

Source : Reuters
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Arcelor Mittal kijkt optimistisch naar de toekomst
Het is nog maar tien jaar geleden dat Lakshmi Mittal dankzij de overname van Arcelor, voor een bedrag van € 26,9 miljard, de grootste staalproducent ter wereld grondvestte. Nu balanceert deze gigant op de rand van de afgrond, omdat prijzen ingeklapt zijn en China de wereld overspoelt met goedkoop staal. Door de economische teruggang en de transitie heeft China een surplus aan staal, dat nu op de wereldmarkt wordt gedumpt.

Hoezeer het water Arcelor Mittal aan de lippen staat bewijzen de cijfers. Over 2015 leed het staalbedrijf een verlies van maar liefst € 7,9 miljard. Daardoor ziet de Groep zich nu gedwongen € 3 miljard uit de markt te halen om zijn schuldenberg te verkleinen. Al eerder hadden de Indiërs het dividend opgeschort. Die emissie is niet vanzelfsprekend een succes, want de koers van het aandeel is gezakt van € 60,55 naar een niveau onder € 5. Om beleggers een hart onder de riem te steken heeft de familie Mittal bekend gemaakt, dat het zelf voor € 1,1 miljard aan de emissie zal deelnemen.
De tragische cijfers over 2015 waren aanleiding voor het management om een herstelplan te introduceren genaamd Action 2020. De kern van het plan is, dat de onderliggende winstgevendheid in 2020 met € 3 miljard verbetert. Die onderliggende winstgevendheid bedroeg in 2015 € 5,2 miljard en dat was 25% minder dan in 2014. In 2016 zal de onderliggende winstgevendheid weer lager uitkomen. Gerekend wordt op een bedrag van € 4,5 miljard. De verbetering van de resultaten moet er vooral komen door fors in de kosten te snijden.
Analisten hebben zo hun bedenkingen over het realiteitsgehalte van het plan. De staalsector heeft een slechte naam als het gaat om effectief en blijvend in de kosten te snijden. Volgens analisten zal bijvoorbeeld Europa ontkomen aan de bezuinigingswoede van het bedrijf. Ze zijn bovendien bang dat andere bedrijven soortgelijke maatregelen gaan nemen, waardoor de prijsdruk eerder zal toe dan afnemen.
Arcelor Mittal deelt hun twijfels niet. Het bedrijf wijst erop, dat juist door zijn grote omvang ingrijpende kostenbesparingen mogelijk zijn. Bovendien wil Mittal niet alleen besparen maar ook met nieuwe, hoogwaardige staalproducten de inkomstenstroom verbeteren. Het bedrijf wil staal gaan produceren voor de bloeiende automarkten in de VS en in Europa. Maar volgens analisten is dat gemakkelijker gezegd dan gedaan. Ze wijzen erop dat concurrenten eerder met weinig succes soortgelijke initiatieven hebben ontplooid. Hun voornaamste bezwaar is echter, dat Action 2020 aan de oppervlakte blijft. Het ontbreekt de meeste plannen aan detaillering en diepgang.

Analisten vragen zich bovendien af of de tijd aan de zijde Arcelor staat. China, die goed is voor de helft van de wereldwijde staalproductie, dumpt zijn overcapaciteit op de internationale markten. Hier vermag Arcelor Mittal weinig te kunnen uitrichten. Volgens het management komt de redding in de vorm van protectionistische maatregelen in de VS en Europa. Die zullen de Chinezen dwingen hun overcapaciteit af te bouwen, zodat er meer evenwicht in de markt komt. Ook dit optimisme wordt niet door iedereen gedeeld. Sommigen wijzen erop, dat een bijkomend effect van de afbouw van capaciteit in Europa de import van staal alleen maar vergroot heeft. Dat wijst op een nieuwe balans, maar niet op de gewenste! Vooralsnog toont Arcelor Mittal zich niet gevoelig voor de kritiek op Action 2020 en klampt het zich vast aan de eigen optimistische kijk op de marktontwikkelingen in de komende jaren!
beurshalte.nl/blog/arcelor-mittal-kij...
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Nou van analisten moeten we het in deze tijd niet meer hebben. Zij worden gestuurd door hun belangen en talloze keren zijn we als particulieren hier al mee geconfronteerd en blijkt vaak dat het allemaal anders ligt. Wat zij zeggen heeft geen betrouwbare status meer.
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Perpster schreef op 17 maart 2016 20:07:

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.
Die gaan nog wel vaker roepen in de VS,hoe dieper in het rood hoe meer ze zullen roepen.21 Tril $ en dan nog met drooge ogen beweren dat de grootste schuld op conto van China en Japan komt.Een schuld per kop van de wereld bevolking van ongeveer 2.750 $.
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Adelaide and Tarcoola rail upgrade brings relief to Arrium workers in Whyalla

Australian media recently reported that steel workers in the South Australian town of Whyalla have been handed a lifeline with the federal government bringing forward a major rail upgrade as Australian Prime Minister Mr Malcolm Turnbull announced that upgrade of rail lines between Adelaide and Tarcoola would commence within months.

The Prime Minister and John Fullerton, CEO of the Australian Rail Track Corporation (announced that the ARTC will fast track a major upgrade to the east-west national rail network. The upgrade will involve 1200 kilometres of rail replacement between Adelaide and Tarcoola, and will deliver a substantial boost to freight productivity in South Australia and the national freight network.

The ARTC will partner with Arrium Steel to deliver the upgrade, substantially boosting demand for steel production at the Whyalla facility. The upgrade will replace decades old rail with stronger steel, weighing 60kg per metre compared to the current 47kg per metre. The stronger tracks will enable axle weight to increase from 23 tonne to 25 tonne at 80 kms per hour. This means that a heavier freight load will be able to be carried and faster track speed, delivering a significant boost in productivity to the network.

The move is designed to save thousands of jobs at Arrium's Whyalla steelworks, which faced being mothballed unless the company could find $60 million in cash savings.

Source : news.com.au
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Essar Steel eying loan revamp by banks - Report

The Hindu Business Line reported that the sharp fall in gas prices and minimum import price, besides the possibility of demand looking up may help Essar Steel sail through the troubled times even as it negotiates with banks to reduce its net debt pile of INR 38,000 crore including working capital loan.

Mr Mahadev Iyer, Director (Finance) and Chief Financial Officer, said banks have already agreed to cover loan worth INR 14,500 crore under the 5/25 scheme which is expected to reduce the interest outgo to INR 300 crore next fiscal.

The company is in talks with banks to get the remaining loan also to be covered under the same scheme. If that happens, Mr Iyer said the interest outgo will reduce substantially else the company has to pay INR 3,800 crore on the uncovered portion of the debt.

Essar Steel plans to raise INR 11,200 crore through sale of its coke oven plant and slurry pipelines in Odisha and Visakhapatnam and take it back on long lease from the buyer was put off after the RBI guidelines prohibited such deals. This apart, he said, the company has appointed SBI Caps to scout for strategic investors in its steel asset to reduce debt.

In February, the Ruias-owned Essar Group sold real estate near the Bandra Kurla Complex for INR 2,400 crore to RMZ Corp. The promoters and group companies have invested INR 9,000 crore over three-and-half years in Essar Steel which had paid INR 20,000 crore as principal and interest during the same period, said Iyer. He added that the promoters are willing to invest another INR 1,500 crore.

Source : The Hindu Business Line
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Worst is behind us - Tata Steel MD

PTI reported that Tata Steel India MD Mr TV Narendran said on Thursday that the steel industry is likely to see good days ahead as the worst is behind us. He said “In the recent past, the domestic prices of steel were up by INR 3,000 and international prices had also moved up by 15%.”

Referring to steel prices, Mr Narendran said he did not wish to predict their range for the next few months but said domestic steel price was still lower than minimum import price imposed by the government in February.

He said that the rural focus in Budget 2016 and the 7th Pay Commission recommendations will fuel domestic demand

Source : PTI
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Conares starts expansion of pipe plant to reach 1 million tonne mark

Gulf Today reported that with the rapid construction of infrastructure in the UAE, particularly Dubai gearing up towards the World Expo 2020, the demand for steel supply has been growing exponentially and statistics indicate that the UAE will have an additional growth of 10 per cent on a yearly basis from the year 2017. Local manufacturers are already in a strong position to cater to each of the upcoming projects as well as creating hundreds of job opportunities. The leading UAE conglomerate, Conares on Thursday commenced the installation of its 12-inch pipe manufacturing plant at Jebel Ali Freezone.

Conares has been manufacturing 500,000 metric tonnes of steel rebars and 250,000 metric tonnes of steel pipes annually; and now achieved the milestone of 1 million metric tonnes manufacturing capacity with additional production of 250,000 metric tonnes as per the expansions at its plant. With commencing the installation of its 12-inch pipe mill, Conares is a step closer to produce 1 million tonnes of steel annually. The company’s current market reach for steel rebars is at 85 per cent in the UAE; 15 per cent in the Middle East region; while it is 65 per cent in the UAE, 20 per cent in the region and 15 per cent in the part of the world for steel pipes.

This is part of Conares’ endeavour of enhancing its annual production to 1 million tonnes, said Bharat Bhatia, CEO of Conares, at the sideline of the event. He said “Being a 100 per cent privately owned entity, our assets exceed $300 million of investments in the UAE. With the support from federal and local government agencies, our products have not only gained market wide acceptance but also are preferred choice of many prestigious projects today.”

He said “Strategically, we have aimed to have a wider market presence based on the product which is why we have a certain percentage of exports outside the region. For pipes, being a global product for us, our export stands at 40 per cent. Rebars, being a regional product, 75 per cent of our production is allotted to the local market and remaining is spread within GCC.”

Source : Gulf Today
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Local producers blamed for unjustified hike in steel prices in Jordan

Jordan Times reported that steel prices in Jordan have gone up by almost 25% about over the past weeks despite a drop in demand by developers, with informed sources blaming the “unjustified” increase on “cartel activities” by local producers. Sources contacted by The Jordan Times warned that this steep rise threatens to drive construction and real estate prices to new highs. Steel prices over the past weeks went up from around JD 375 a tonne to nearly JD475 per tonne.

The sources said the Ministry of Industry, Trade and Supply seems to be confused whether to take action or not, citing a statement by the ministry on Monday which said it would open the door for importing steel due to rising prices. But the ministry then backed off on the same day, asking media outlets to cancel or not publish the statement. The ministry went back on its decision because of pressure by producers, said the sources, who include a government official.

On last Monday, the ministry said that it would allow imports of steel into the domestic market without any restrictions on quantities, as previously it used to restrict the quantity of steel imports to 3,000 tonnes per month. The intended decision, it said, is aimed at boosting competition in the domestic market. The statement, which quoted Minister of Industry, Trade and Supply Maha Ali, said prices in the local market were going up despite the decline in production costs and heavy fuel prices.

On Tuesday, Ali met with the Jordan Chamber of Industry and said that steel prices went up by JD100 a tonne over the past weeks, describing the hike as unjustified, according to the Jordan News Agency, Petra. Petra quoted the minister as saying that the ministry is currently in talks with industrialists to review the prices and production costs, and that it would take a decision related to allowing imports and their quantities accordingly.

Another source said that factories are cartelising in order to protect their margins, although demand for the product is weaker than what it used to be a year ago.

Source : Jordan Times
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Lay Offs – Evraz NA - 450 temporarily out of work at Rocky Mountain Steel in Pueblo

KKTV reported that EVRAZ Rocky Mountain Steel in Pueblo announced it will temporarily stop its steelmaking and rail mill operations for two to three weeks. The move is expected to impact about 450 employees and was to begin on March 19

The company said “The idling is necessary to align production with demand. Rail demand has been impacted by the downturn in commodity markets, specifically coal, metals and oil, and the continued high volume of unfairly traded steel imports.”

The Rod & Bar Mill is not included in the plan, according to EVRAZ.

Source : KKTV
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SAIL RSP to develop high strength steel using Russian technology

Press Trust of India reported that Steel Authority of Inbdia Limited’s Rourkela Steel Plant is all set to roll out high strength steel of strategic importance using Russian technology. A RSP release said “An interaction session pertaining to heat making, rolling, heat treatment and testing of the high strength steel was held here recently where Russian steel making experts and Indian defence scientists were present.”

RSP said “Technology of manufacturing of this very high strength steel is being transferred from Russia to India. The process of manufacturing of these steel consists of trial production, mastering production and certification of the process and product.”

RSP rlease said “The team also witnessed Heat Making of this high strength steel at SMS-II through RH degasser. The chemistry obtained during heat making was extremely satisfactory and within the range specified in the technical documentation supplied by the Russian Experts.”

Steel making experts from Prism Promety, St Petersberg, Russia, and senior level scientists from Defence Metallurgical Research Laboratory (DMRL), Hyderabad, and CCNM, Hyderabad were present in the interaction session.

Source : Press Trust of India
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EU action on cheap steel imports from China not enough: industry

Reuters reported that CEO of German producer Thyssenkrupp Steel Europe said that the European Union’s import duties on low-price steel imports from China are not enough to solve the problems faced by Europe’s struggling producers. Mr Andreas Goss, head of the European steel unit of German group Thyssenkrupp, said “EU action taken so far could be “too little, too late” as the Europe’s steel industry fights for its survival.”

Mr Goss told the CRU World Steel Conference in Duesseldorf that “Europe must act more forcibly and quickly like the United States to deal with steel dumping” by China. The situation is serious, more serious than we have seen for many years. The EU had imposed import duties of 14 to 16 percent on some steel products against anti-dumping duties of over 260 percent that are possible in the United States.
This is a slap on the wrist.”

Mr Henrik Adam, chief commercial officer of Tata Steel Europe, said “EU is one of the few open steel markets as market access is heavily restricted in much of the world said. We need a level playing field.”

European steelmakers have been hit by a plunge in steel prices blamed largely on a surge in cheap exports from China, where overcapacity has been exacerbated by declining domestic demand. The European Commission announced plans on last Wednesday to speed up trade defense cases against cheap imports from China and urged EU member states to end measures that could block higher duties on dumped and subsidized products.

Source : Reuters
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Liberty may buy Tata Steel works in Motherwell and Cambuslang in Scotland - Report

The Sunday Post has learned an agreement has been reached to sell the Tata Steel works in Motherwell and Cambuslang to international metals firm Liberty House. Sources close to the deal expect an announcement to confirm the sale this week in a move which will preserve the centuries-old steel production tradition in Scotland.

Scottish Conservative MSP Alex Johnstone said: “This is a rare piece of good news for an industry which is struggling. It will be a huge relief to these communities.”

In October last year 270 workers at plants in Clydebridge, Cambuslang and Dalzell, Motherwell were told their plants were being closed unless a buyer could be found.

London-based private equity group Greybull Capital revealed in December it wanted to buy Tata’s UK businesses but was not interested in Dalzell and Cambuslang.

A huge effort by unions and Scottish Government ministers was undertaken to try and find a new owner for the plants, which both opened in the 1800s.

Liberty Steel confirmed interest in January and has been working to secure a deal since, despite interest shown by former Rangers owner David Murray.

Liberty has experience of reviving mothballed plants as last year it restarted production at a plant in the Welsh town of Newport which had been closed for more than two years. It now produces 50,000 tonnes of steel a month.

Source : Sunday Post
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South Korean steel mills considering another price hike - Report

KBS World reported that South Korea’s leading steel producers are mulling plans to raise prices after years of falling prices depressed revenue. The country’s largest steelmaker POSCO raised prices of its hot-rolled steel plates by as much as KWR 30000 or about USD 26 per tonme in January, before raising prices by as much as KWR 30000 again early this month.

The Pohang-based firm is also considering hiking prices of its cold-rolled plates and thick plates.

Hyundai Steel is also known to be continuing reviews of key products and considering raising prices.

Source : KBS World
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Lay Offs - US Steel - 770 jobs to go at one Star and Fairfield amid oil slump

Houston Chronicle reported that US Steel Corp on Friday said it will dismiss as many as 770 workers and idle two plants that make tubes used in oil drilling as energy companies cut production. US Steel may cut as many as 450 union-represented jobs at its Lone Star Tubular Operations in East Texas and 200 at its Fairfield Alabama plant

US Steel idled Lone Star on Friday and will shut down Fairfield in April.

About 120 non-union represented positions were cut across Ohio and Texas, including those in the Houston sales office. The company declined to give specific numbers by location.

Workers at the two sites were notified of potential layoffs in January.

US energy companies have slashed capital spending as oil and gas prices have tumbled. US Steel is among suppliers that have also suffered, cutting production at tube-making facilities from Ohio to Texas as demand and prices have dropped. US Steel's sales in its tubular division, typically the most profitable, posted an operating loss of $179 million in 2015 as sales plunged by 68 percent.

Source : Houston Chronicle
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Production begins at Big River Steel Mill at Arkansas in US

Arkansas News reported that steel production has begun at Big River Steel’s $1.3 billion plant in Mississippi County. Big River Steel said in a news release that two units at its “Flex Mill” near Osceola began operating this week as part of a phased start-up that will last throughout the year. When fully operational, the plant is expected to produce 1.6 million tons of niche and specialty steels per year.

In 2013, the Arkansas Legislature approved a $125 million bond issue to help the company build the plant. The project is the largest private investment the state’s history.

Big River Steel also said in the release it is in the process of hiring the 425 employees it will need to run the plant.

Previously, company officials said the plant would create 525 jobs. Scott Hardin, spokesman for the Arkansas Economic Development Commission, explained Friday that in addition to the expected 425 Big River Steel employees at the plant, 100 people are expected to be employed at the site by companies that have contracts with Big River Steel.

Source : Arkansas News
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Bohai Steel may be unable to make full repayment on debt - Caixin

The online financial magazine Caixin reported that Bohai Steel Group Co Ltd, a steelmaker based in northeast China, may be unable to make full repayment on 192 billion yuan ($29.61 billion) of debt,. Caixin said on Saturday that the city government of Tianjin, which owns the firm, has set up a committee of creditors to help resolve the problem

Creditors include the Tianjin branch of the Bank of Beijing Co Ltd and 105 other financial institutions, the magazine reported, including several trust companies such as Tianjin Trust, Beifang Trust and Guomin Trust.

Payments due on some of the related trust products may have already been affected, Caixin said. Chinese trust fims, a lynchpin of the nation's non-bank shadow financing system, typically take in funds from retail investors and relend them at relatively high rates.

BHS is a state-owned business group combined by four state-owned steel manufacturers in July 2010 with 17billion Yuan Registered capital. The four manufacturers are Tianjin Pipe Group corporation, Tianjin Iron & Steel Group Co Ltd, Tianjin Tiantie Metallurgy Group Co Ltd and Tianjin Metallurgy Group Co Ltd. The Group has been approved and supervised by Tianjin Municipal Committee of the Communist Party of China and Tianjin Municipal Government. The group is a massive production business group which specialized in sintering, iron making, steelmaking, continuous casting, steel rolling and metal productions.

Source : Reuters
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