Eurobench.com

Azoia 26 oktober 2016 22:14

0

PRICES EXPECTED TO CONTINUE RISING IN NORDIC REGION
OCT 26, 2016 | WSN ADMIN | NO COMMENT | NORDIC STEEL PRICES, STEEL PRICE NEWS
00000000
According to MEPS, business activity for hot rolled coil is stable across the Nordic region. The mills’ attempts to lift selling values were largely successful, in October. We expect that upward price pressure will be increased by the announcement of European Union antidumping measures against Chinese hot rolled coil and plate.

Consumption of hot rolled plate is quite weak. Demand from bus and truck manufacturers is good but the agricultural equipment and oil and gas sectors are not strong. Antidumping action against Chinese suppliers may introduce upward price pressure in the short term.

Western European mills report that their cold rolling schedules are full, through to the end of the year. This has helped producers in northern Europe secure increases. Delivery lead times are longer than usual.

Hot dipped galvanised material is in quite short supply. Consequently, the mills have managed to raise prices in October. Demand from car makers continues to be strong.

Purchasing activity for wire rod is slower than expected. However sellers are optimistic that demand will pick up in the near future. Producers from southern Europe have become more active in the market. Prices could slide further but no dramatic fall is anticipated.

Demand for structural sections is quite weak, for the time of year. Scrap costs are low. Beam prices continue to drop back, following the steep rise earlier in the year. Consumption by the construction sector is fair.

Consumption of rebar is reasonable. However, prices continue to fall steeply. Buyers speak of offers from new suppliers in Russia and Spain. This, combined with low scrap costs, is putting downward pressure on selling figures.

Source: European Steel Review Supplement – October Edition

Azoia 26 oktober 2016 22:18

0

METAL NEWS
Tata Steel’s Europe Joint Venture Seen Delayed by Mistry Ouster
26 Oct 2016 Steel Steel
Tata Steel Ltd.’s efforts to combine its European steel operations with Thyssenkrupp AG may be delayed after parent Tata Sons Ltd. abruptly replaced its Chairman Cyrus Mistry, according to CLSA Asia-Pacific Markets.
“It was widely believed that Cyrus Mistry was the driver of Tata Steel’s strategy to sell-off its European assets,” analysts Mahesh Nandurkar, Abhinav Sinha and Alok Srivastava wrote in a report Tuesday. His ouster may raise questions about the continuation of this strategy and a major decision on talks with Thyssenkrupp may happen only under a new chairman, they wrote.Mistry, 48, was replaced by his 78-year-old predecessor Ratan Tata at a board meeting on Monday, calling into question his push to transform Tata Group into a more prudent enterprise by refinancing loans and selling down assets. Tata, a scion of the founding family, will serve as the interim chief and take part in the search for a more permanent successor over the next four months. Tata Steel in March said that it would consider selling its loss-making U.K. operations, formerly known as Corus Group Plc and purchased in 2007.
Source:Bloomberg

Azoia 27 oktober 2016 06:47

0

METAL NEWS
Tata Steel UK's speciality steel business sale put on hold
27 Oct 2016 Steel Steel
The sale process for Tata Steel UK’s speciality steel business has been put on hold following the change of guard at Tata Sons.

Meetings between buyers and Tata Steel management were scheduled for next month, but bidders are already sceptical about the outcome after the sudden change of leadership, said a person familiar with the sale process. “Bidders were not sure whether the meetings would happen and even if it did happen, there was apprehension that the sale process would be called mid-way.”

However, that uncertainty has been put to rest, as sources said the interim chairman, Ratan Tata, is against selling the UK business in whole or in part.

Even when Tata Steel changed tack about its European business in July, it had said that it would begin a separate processes for the potential sale of the South Yorkshire-based speciality steels business and the Hartlepool pipe mills (other than the 20-inch tube mill) in the UK.
“Tata Steel UK has already received interest from several bidders for speciality steels and the pipe mills in each case and a formal process will be commencing shortly,” the company’s July statement read.

According to persons familiar with the development, while the speciality steels business had a good product mix, it was a loss-making unit primarily because of high energy costs.

“The production is through the electric arc furnace, which is an energy intensive technology,” they said. The capacity of the speciality business was around 1.2 million tonnes and could have fetched Tata Steel around £100 million.

Together, the speciality and pipe mills employ around 2,000 people.

Sources indicated that Tata, who had always batted for Indo-UK business ties, was opposed to further job losses. Since 2007, several restructuring initiatives have been taken, which affected jobs across facilities.

In May, Tata Steel completed the sale of its long products Europe business to Greybull for a mere £1.
Source: Business Standerd

Azoia 27 oktober 2016 06:48

0

Thyssenkrupp India CEO says no decision yet on Tata Steel JV
27 Oct 2016 Steel Steel
There has been no decision yet on a European joint venture (JV) of Germany’s Thyssenkrupp AG and the Tata group-controlled Tata Steel Ltd, Thyssenkrupp India’s chief executive Ravi Kirpalani said in an interview to Mint in Mumbai Tuesday.

“It is too early yet for any conclusive outcome of discussions with Tata Steel,” he said, adding that the parent was in discussions with “other interested” steel manufacturers in Europe as well. Kirpalani said he is not directly involved in any of these discussions.

Tata Sons’s ousted chairman Cyrus Mistry had played a key role in discussions about merging Tata Steel’s Europe operations with those of Thyssenkrupp, and his abrupt removal could affect these discussions, according to analysts. A CLSA Asia-Pacific Markets report on Tuesday said the deal may be delayed.

“All those discussions are at a preliminary stage and we are nowhere close to any sort of fruition of even being able to know whether they will come to something or a preliminary timeline, but certainly discussions are on with large parties to explore the possibilities of consolidation in steel (in Europe),” Kirpalani said.

Tata Steel in March decided to put its entire UK business on sale in the face of a slump in steel demand and prices, but the plan hit a roadblock due to uncertainty stemming from Britain’s decision to exit the European Union (EU).

The group eventually halted the sale process in July in favour of discussions for a joint venture with “strategic players in the steel industry, including Thyssenkrupp AG”, the company had said.

An email sent to Tata Steel Wednesday remained unanswered.

Thyssenkrupp last year said it would invest Rs300 crore in setting up an elevator manufacturing plant at Chakan, Pune. Kirpalani said the company would explore further investments in its electrical steel plant in India once the country clarifies its stance on an anti-dumping duty on finished electrical steel products.

Electrical steel made by the company is used in manufacturing motors, transformers, and power transmission equipment.

“We are getting squeezed in between because our raw material prices have gone up (due to anti-dumping duty on raw materials) and there is no duty protection on the finished product... If our raw material continues to be disadvantaged, then we will find it difficult to invest to make finished product,” he said.

Kirpalani does not see an imminent revival in the private sector investment cycle in India. “People still don’t have the confidence to say that yes we are seeing a turnaround.”

Thyssenkrupp, a German conglomerate with interests in steel, elevators, automotive components, and industrial solutions, had a revenue of €42.78 billion in 2015. The Indian unit, which contributes less than 1% to global sales, has a target to reach $1 billion in revenue over next three years.

A flood of cheaper imports from China and Russia, price volatility and rising raw material prices would keep the outlook for the European steel industry negative over next 12-18 months, Bloomberg said Wednesday, citing a Moody’s report.
Source:Livemint.com

Azoia 27 oktober 2016 06:49

0

China’s Industrial Profits Get Boost From Steel, Refining
27 Oct 2016 Steel Steel
Profits of China’s industrial corporations are holding up this year thanks to a boost from steel and refining, even as last month’s earnings slowed from a three-year high.
Industrial profits in January-September rose 8.4 percent from a year earlier to 4.64 trillion yuan ($685 billion), the National Bureau of Statistics said Thursday. Earnings last month rose 7.7 percent in September from a year earlier to 577.1 billion yuan, less than the jump of 19.5 percent in August that was the biggest in three years.
"The figures aren’t bad in fact, especially in the state sector, which is doing very well," said Zhou Hao, an economist at Commerzbank AG in Singapore. "The biggest challenge facing companies is to strike a balance between cutting debt and making a profit. Controlling debt risk now becomes a priority for the government as corporate profits have been stabilized."
Steel production is leading the charge with a 272.4 percent jump in the fist nine months versus a year ago, followed closely by a 263.8 percent jump for oil refining earnings. Years of deflation for factories has abated, with producer prices up last month for the first time since 2012, as global commodity prices recover and stimulus supports domestic demand.
Early Indicators
With the economy stable, policy makers are stepping up efforts to curb risks from rampant growth in shadow banking products, elevated corporate debt and surging home prices. Early private indicators for October give mixed readings, reflecting tension between resilient domestic demand and fresh challenges as policy switches to reining in financial risks.
"Profit and revenue growth may benefit further from improving post-factory price pressures in the coming months," said Donna Kwok, a senior China economist at UBS Group AG in Hong Kong. "Property tightening measures will have only a modest effect, but any dampening effect will take time to trickle through to property construction and investment activities, so support for industrial demand and sales should hold up."
Still, the NBS said in a statement that foreign and domestic demand remain weak, and coal and steel companies have taken on more debt. "We should take heed of corporate debt risks as we cut overcapacity," the NBS said. The agency said the month-over-month moderation was partly because profits in August 2015 were especially weak, then stronger the next month.
Source:Bloomberg

Azoia 27 oktober 2016 06:51

0

Steel Manufacturers Gain Popularity Once Again
27 Oct 2016 Steel Steel
Steel manufacturing has reemerged as a hot sector. The global steel industry at least for now, is attracting investors back as China's Baoshan Iron & Steel Co. has started the earnings season for the recent quarter with a jump in profit. Steel producers in Asia, Europe and the U.S. are likely to see similar results. Petrone Worldwide Inc. (OTC: PFWI), Alcoa Inc. (NYSE: AA), ArcelorMittal SA (NYSE: MT), AK Steel Holding Corporation (NYSE: AKS), Gerdau SA (NYSE: GGB).

Steel prices rebounded somewhat this year, largely after China's government took measures after infrastructure waste and metal production glut. As steel is used across a very varied range of industries, the possible revival of steel manufacturers makes smaller companies in the sector a potential acquisition target, or a desirable partner for business expansion.

In recent news, Petrone Worldwide Inc. (OTC: PFWI) announced that it has expanded its business with Dewan & Sons by signing a new strategic partnership. Dewan & Sons is a manufacturer in India focused on the production of articles of Brassware, Copperware, galvanized & wrought iron, aluminum ware, stainless steel utensils, EPNS and EPSS for luxury brands and mass merchandisers in North America and Europe in the houseware, furnishings marketplace. The company's products ranges from classic stainless steel bowls to beautifully shaped brass pots and vases.

Petrone Worldwide Inc. is an importer and distributor of commercial grade tableware products, decorative hotel guest room amenities, lavatory and bathroom fixtures and furniture, food and beverage service items, and trendy accessories for the Asian and the European marketplaces. The Company's brands include Front of the House and Room 360.
Source:PRNews

Azoia 27 oktober 2016 06:51

0

Iron ore price explodes higher
27 Oct 2016 Steel Steel
The import price of 62% Fe content ore at the port of Tianjin soared nearly 5% to $61.60 per dry metric tonne on Tuesday according to data supplied by The Steel Index as top producers cut output guidance and demand from top consumer China rebounds.

That was the highest level for the Chinese benchmark price in over two months. Futures trading on the Dalian Commodities Exchange indicated further appreciation ahead with the most active contract reaching its daily up limit of 6% for a new 2016 high of 471.50 yuan or $70.10.

A note from Freight Investor Service described "massive movement" on the Dalian exchange with the rally starting last night and continuing into Tuesday as the contract broke through previous resistance levels of the highs from April and August this year.
Against most predictions, year to date the price of the steelmaking raw material is up 43.6% after surging by two-thirds in value from near-decade lows in December last year.

China, which consumes more than 70% of the world's seaborne iron ore trade, imported 93 million tonnes in September, only slightly below the record 96.3 million tonnes hit in December last year. Shipments for the first nine months are up more than 9% from 2015's record setting pace and on track to breach 1 billion tonnes for the first time.

Last week top iron ore miner Vale reduced its production outlook for 2017 to 360m–380m tonnes, below its original forecast for 380m–400m tonnes. The Rio de Janeiro-based giant said 2016 production would be at the lower end of a range of 340m–350m tonnes.

Number two producer Rio Tinto also cut its outlook for this year's shipment by as much as 5 million tonnes, hampered by logistics bottlenecks at its Pilbara operations in Western Australia. The Melbourne-based company expects to ship around 325m tonnes this year, rising slightly to between 330m – 340m tonnes in 2017.

Metallurgical coal's rise this year has been even more dramatic than that of iron ore and trading at $245.50 a tonne on Tuesday, the steelmaking raw material is up 25% so far in October. According to data provided by the Steel Index premium Australia hard coking coal prices are up more than three-fold since hitting multi-year lows around $70 a tonne in November last year.
Source:Mining.com

Azoia 27 oktober 2016 06:52

0

Iron ore price edges closer to six-month high as bull run continues
27 Oct 2016 Steel South Africa, Indonesia, Australia, spot price
The iron ore price has soared to its highest point in almost six months, pushing past its previous August peak as investors hope for an improvement in Chinese demand.

Iron ore gained 1.8 per cent to $US62.70 a tonne overnight, according to The Steel Index, compared to $US61.60 the previous day. Dalian iron ore futures also pushed higher.

After either gaining or holding steady for 13 sessions in a row, the commodity is now at its highest level since April 29, when it spiked to $US65.20.

Iron ore is also following a rally in coking coal, which has gained 25 per cent over the month of October, with steel producers relying on both commodities.

The rally comes as major producers’ shipment forecasts fall at the same time as hopes for strong demand from China are high.

Pure-play miner Fortescue Metals Group this week said the market had come into balance, with low cost seaborne ore displacing Chinese domestic production. But Vale reduced its production guidance and Rio Tinto lowered its shipments forecast.
But the gains were not enough to buoy Australia’s mining giants in London trade. Investors pushed shares in BHP Billiton 1.7 per cent lower, while Rio lost 0.2 per cent, which could indicate some scepticism on the part of equity investors.

Analysts at Citi are among those who doubt the recent run of gains can last.

After undertaking a Fortescue site visit, Citi analysts said there was still potential for the miner to cut some costs and eke out production gains.

“But we expect these to be offset by external cost factors and lower iron ore prices, driving our sell rating,” Citi said in a research note.
Source:The Australian

voda 27 oktober 2016 21:18

0

POSCO E&C develops new rebar anchorage

Korea Times reported that POSCO Engineering and Construction which has been leading technological development in the industry, announced recently that it has completed a patent application for a new rebar anchorage that it developed, which enhances structural stability. The "dual-type rebar anchorage" better affixes rebar that is inserted into ferroconcrete than present technologies, on top of enhancing the strength of the building.

Concrete has high compressive strength, but very little tensile strength. The rebar included in ferroconcrete makes up for the lack of tensile strength. The anchorage attached to the end of the rebar plays a key role in supplementing this.

Commonly used T-shaped anchorages sometimes can trigger side blow-outs, or the phenomenon in which the side of the concrete breaks. However, when adding more concrete to prevent a side blow-out, it ends up decreasing internal forces.

The newly developed dual-type rebar anchorage solves both of these problems, according to the company. It increases resistance to tensile load by combining two rebars and increasing the surface area of the anchorage at the same time, thereby decreasing the risks of side blow-out.

Kim In-ho who was in charge of development of the new technology at POSCO E&C said that "Recent earthquakes rattled the whole country. I am very glad that the technology developed by POSCO will be used to enhance the structural stability of buildings.”

The Ministry of Land, Infrastructure, and Transport recently announced revisions to the construction act that order the strengthening of earthquake-proof design of buildings. Korea is relatively safe from earthquakes, but many Koreans fear otherwise following the 5.8-magnitude tremor in Gyeongju last month as well as hundreds of aftershocks.

Source : Korea Times

voda 27 oktober 2016 21:19

0

Allegheny Technologies confirms permanent closures of Midland and Bagdad steel plants

The Pittsburgh based company confirmed the permanent closures while also reporting that it lost USD 530.8 million in its third quarter.

Source : Strategic Research Institute

voda 27 oktober 2016 21:20

0

Essar Steel gets INR 1500 crore bridge equity from Farallon Capital

Economic Times reported that the heavily indebted Essar Group have told lenders that American hedge fund Farallon Capital Management has offered "bridge equity" to the tune of INR 1,500 crore to help bolster efforts to revive Essar Steel. Multiple sources aware of ongoing negotiations said that under the plan, Farallon is supposed to take a quasi-equity exposure in an offshore vehicle controlled by the Essar promoters.

This entity will in turn invest the money in Essar Steel's equity. The investment will be against shares pledged by Essar Group founders Shashi and Ravi Ruia, who will repay the hedge fund once the Rosneft-Essar Oil deal is completed. Farallon will receive a fixed return on its investment if the deal goes through.

The promoters of Essar Steel are supposed to channel USD 300 million from the sale of their Essar Oil stake to Rosneft and others into the steel business as part of their equity contribution in the recovery plan that is being negotiated with lenders. If the money isn't repaid, Farallon will end up owning a significant chunk of Essar Steel.

The lenders, led by State Bank of India, are open to restructuring debt only if the promoters plough their own funds into the business as equity along with personal guarantees. They have also sought a 49% stake in the steel maker.

ET reported on October 19 that the lenders want the Ruias to make a Rs 2,500-crore equity contribution, more than what the promoters had agreed to invest and indicating that the banks are in no mood to ease pressure on the group. Mr V Ashok CFO of Essar Group said that "Essar Steel has submitted a restructuring proposal to the lenders which is under discussion. "You would appreciate that it would be inappropriate for us to comment on ongoing discussions. We are hopeful of an expeditious completion of the exercise."

Earlier this month, the Ruia family announced the sale of a 98% stake in Essar Oil to Russia's Rosneft, commodities trader Trafigura and United Capital Partners for USD 10.9 billion ( INR 72,800 crore). The proceeds will be used to pay debt and stabilise the steel, ports and power units.

SSG, Synergy Proposals In the past month, the lenders have examined proposals of Hong Kong-based special situations fund SSG Capital Management and Synergy Capital that wanted to buy a little less than half of the company's rupee debt through Asset Synergy Capital was founded by former ArcelorMittal senior executive Sudhir Maheshwari, who is its managing partner.

SSG had proposed retaining the present management and working with it on a revival while providing only working capital. It is also seeking a debt recast involving lower repayments and rates.

Source : Economic Times

voda 27 oktober 2016 21:21

0

China set to hit steel & coal capacity-cut targets early - NDRC

Xinhua reported that China will hopefully achieve its annual steel and coal capacity reduction goals ahead of schedule this year, the country's top economic planner said on Tuesday, as local authorities have intensified efforts in recent months due to pressure from the central government. National Development and Reform Commission told a press conference that by the end of September, China had accomplished over 80% of its goals for steel and coal production cuts.

The NDRC said it will continue efforts to shed unnecessary production capacity in steel and coal to facilitate structural overhaul in the long term.

The country has vowed to cut steel capacity by between 100 and 150 million tonnes by 2020, including 45 million tonnes in 2016. This year's coal reduction target is 250 million tonnes.

Source : Xinhua

Bijlage:

voda 27 oktober 2016 21:21

0

US steel imports decline MoM in September - AISI

Based on preliminary Census Bureau data, the American Iron and Steel Institute eported that the US imported a total of 2,745,000 net tons (NT) of steel in September 2016, including 2,108,000 net tons (NT) of finished steel (down 10.2% and 11.2%, respectively, vs. August final data). Year-to- date (YTD) through nine months of 2016 total and finished steel imports are 24,773,000 and 19,776,000 net tons (NT), down 19.8% and 21.5%, respectively, vs. the same period in 2015.

Source : Strategic Research Institute

voda 27 oktober 2016 21:22

0

Former Karnataka CM Mr Yeddyurappa acquitted in iron ore mining kickback case

Business Standard reported that Mr BS Yeddyurappa, who has been tasked to lead the Bharatiya Janata Party to reclaim power in Karnataka got a reprieve on Wednesday after a CBI court acquitted him in a INR 40 crore bribery case of granting iron ore licenses during his tenure.

The acquittal will get legal sanctity to disprove allegations that the Lingayat strongman led the BJP's first "corrupt" government in South and consolidate his leadership in the Karnataka BJP unit and gear the party for the assembly elections in 2018. Earlier, land cases against him was quashed by the Karnataka High Court on procedural grounds, which the Supreme Court upheld.

In 2011, Yeddyurappa had to step down after his name figured in the Lok Ayukta report that blew the lid of the INR 3000 crore illegal scam in the iron ore rich Bellary district. Apart from Yeddyurappa, his party colleagues Sriramulu, Janardhana Reddy, Anand Singh and Nagendra were the other BJP lawmakers who were named in the report that indicted them of shipping thousands of tonnes of iron ore illegally to then resource hungry China.

In October 2012, the CBI had framed charges against Yeddyurappa and 12 others over money deposited in bank accounts of his sons B Y Raghavendra, B Y Vijendra and son-in-law Sohan Kumar between August and September 201. The total money deposited in their accounts amounted to Rs 20 crore. An additional Rs 20 crore was donated by JSW Steel to a trust Prerana Educational and Social Trust run by Yeddyurappa's sons.

The charges alleged favours granted to an affiliate company of steel major JSW Steel to mine iron ore in the state. The special court of the CBI acquitted all the accused.

Source : Business Standard

voda 27 oktober 2016 21:23

0

Alacero boss sees recovery of Latin American steel industry in 2017

In the press conference of the Latin American Steel Conference (Alacero 57), with the attendance of the entity’s president, CEO of ArcelorMittal Aços Longos for Central and South American and a member of the Executive Committee of the ArcelorMittal Group, Jefferson De Paula, as well as of Alacero’s general director, Rafael Rubio.

Source : Strategic Research Institute

Bijlage:

voda 27 oktober 2016 21:24

0

SAIL may report turnaround for Jul-Sep quarter - Report

Financial Express reported that state run steel maker Steel Authority of India, which had reported net losses during the April to June period and the previous four quarters, might have witnessed a turnaround in the September quarter.

Sources said SAIL’s sales turnover, backed by higher volume and better prices, for the April to August period of the current fiscal stood at INR 18,013 crore, up by 4% over the corresponding period last fiscal. During the June quarter, SAIL’s net sales stood at INR 9,082 crore and net loss was at INR 535 crore.

Sales volume of the company increased by 13% to 4.9 million tonne during the April to August period over the same period last fiscal. It had sold 2.8 million tonne saleable steel during the April to June quarter of the current fiscal.

In July and August, it sold 0.9 million tonne and 1.24 million tonne steel respectively. Sources said sales volume of the company had improved in September, but figure was immediately available.

Plagued by a host of issues including cheap imports and resultant subdued domestic prices, SAIL had been incurring losses since the April to June quarter of the last fiscal and its accumulated loss for the past five quarters stood at INR 4,674 crore.

Source : Financial Express

voda 27 oktober 2016 21:26

0

Tata Steel UK speciality steel business sale put on hold - Report

Business Standard reported that the sale process for Tata Steel UK’s speciality steel business has been put on hold following the change of guard at Tata Sons.

The report quoted a a person familiar with the sale process as saying that “Meetings between buyers and Tata Steel management were scheduled for next month, but bidders are already sceptical about the outcome after the sudden change of leadership. Bidders were not sure whether the meetings would happen and even if it did happen, there was apprehension that the sale process would be called mid-way.”

However, that uncertainty has been put to rest, as sources said the interim chairman, Ratan Tata, is against selling the UK business in whole or in part.

According to persons familiar with the development, while the speciality steels business had a good product mix, it was a loss-making unit primarily because of high energy costs. They said “The production is through the electric arc furnace, which is an energy intensive technology.”

Even when Tata Steel changed tack about its European business in July, it had said that it would begin a separate processes for the potential sale of the South Yorkshire-based speciality steels business and the Hartlepool pipe mills (other than the 20-inch tube mill) in the UK. It had said “Tata Steel UK has already received interest from several bidders for speciality steels and the pipe mills in each case and a formal process will be commencing shortly.”

The capacity of the speciality business was around 1.2 million tonnes and could have fetched Tata Steel around GBP 100 million. Together, the speciality and pipe mills employ around 2,000 people.

Earlier in the year, the Tata Steel board had reviewed the performance of the European business, which it acquired in 2007 for $12 billion, and directed Tata Steel Europe to explore all options for portfolio restructuring, including the potential divestment of Tata Steel UK, in whole or in parts. In May, Tata Steel completed the sale of its long products Europe business to Greybull for a mere GBP 1.

Source : Business Standard

Azoia 28 oktober 2016 06:36

0

Tata Steel's plans to seek partner on European steel assets unchanged - source
28 Oct 2016
Tata Steel Ltd's plans for its European steel business are unchanged and the debt-laden firm is still seeking a partner for a joint venture to run the assets, according to a source present at a closed-door analyst briefing on Thursday.

In March, Tata Steel decided to put its British steel operations on sale following heavy losses linked to a flood of cheap Chinese imports and low demand in the region.

The process was suspended in July because of uncertainty over Britain's vote to leave the European Union.

The company has since said it is exploring opportunities for a partnership for its entire European steel business, which also includes a steelworks in the Netherlands.

Tata Steel has previously said that Germany's ThyssenKrupp AG is one of the companies with which a partnership is being discussed.

The source, who spoke on condition of anonymity, said Tata Steel officials told analysts there were no concerns about the group's steel business stemming from the departure of its former chairman Cyrus Mistry as boss of Tata Sons.

Analysts had said the departure of Mistry from the chairmanship of the group could hurt the prospects of the merger or sale of the European steel business as he played a big role in discussions.

Sources in Britain and Germany said it was too early to know the implications of the boardroom changes, but they had not heard talks were off.

In any case, discussions have been slow and difficult as negotiators face big obstacles, such as dealing with a very expensive pension scheme Tata Steel inherited when it bought the British operations.

Mistry, in a letter to the board of Tata Sons on Tuesday, criticised the group's foreign acquisitions, saying the investments in loss-making businesses could lead to writedowns of $18 billion.

He also said in the letter that an aggressive acquisition strategy, during Ratan Tata's previous tenure as chair, led to the company's European steel business suffering "potential impairments in excess of $10 billion, only some of which has been taken as of date."

In response, Tata Steel said on Thursday that its financial statements presented a true and fair value of the company.
Source:Reuters.com

Azoia 28 oktober 2016 06:37

0

Jan-Sept steel exports rise by 2.4%
28 Oct 2016 Steel Steel
The Asian market has been the main contributor to the growth of steel exports in the first nine months of this year, according to a top official of the China Iron & Steel Association in a news release on Thursday.

Steel exports in the first nine months stood at 85 million metric tons, up 2.4 percent from the same period last year.

Wang Yingsheng, deputy president of CISA, said that the 2.4 percent steel export volume growth in the first three quarters was generated by the Asian market, especially the emerging markets where construction demand is high.

He said that given the current situation, steel exports to Asia are not going to drop. With the Belt and Road Initiatives, they are expected to increase.

The number of anti-dumping and anti-subsidy cases overseas was 38 in the first three quarters, compared to 37 in the whole year of 2015.

"Increasing trade frictions have prompted many steel companies to stabilize their overseas market and turn to direct sales, circumventing trade companies so that they have first-hand information on the requirement of their buyers," said Wang.

Wang said that developed countries' demand for steel has remained lackluster since the financial crisis in 2008, while demand in Asia, especially ASEAN countries, has been on the rise.

"Locally produced steel in countries in Asia and the Middle East is generally of small volume, creating markets for China's exports," said Wang.

This year has seen the steel market rebounding from across the board losses last year. The 373 CISA-member steel smelters, which account for around 80 percent of the country's capacity, had 25.2 million yuan ($3.7 million) profits.

"The main driver for profitability this year is the significant reduction of costs. It should be noticed that the profit rate (net profit/cost) is merely 1.27 percent, far lower than the average 5 percent among industrial companies. Therefore, steel companies' profitability is still very vulnerable," said Chen Yuqian, director of the fiscal and asset department of CISA.

The main consumers of steel in the fourth quarter will be real estate, construction and machinery manufacturing, said Chen.

"Property, transportation, environmental-management and irrigation facilities will generate a lot of demand for steel. Machinery manufacturing, such as automobile production, which has been growing by roughly 10 percent year-on-year in recent years, is also a key engine of steel demand. Yet the demand won't be robust in the rest of the year," said Chen.

Chen warned that the increase in steel output in the fourth quarter needs to be closely monitored to avoid price wars if supply outstrips demand.
SOurce:ChinaDaily

Azoia 28 oktober 2016 06:40

0

Chinese domestic & export steel pricing
28 Oct 2016 Steel Steel
Steel Market Update has been working on developing new sources to complement some of our original sources out of China. The following information is part of a report we receive once per week from two steel trading companies located in Asia and actively involved with the Chinese steel industry.

The first note is from one of our consistent trading sources who trades not only steel but also iron ore and other mill inputs. This source discusses the higher prices in China as well as Southeast Asia and European markets due to higher coking coal and stable iron ore prices. This source believes steel prices will move higher in these markets. He also notes the selling price of billets, many going to the Turkish market for conversion to rebar and other long products. Higher billet prices will make U.S. ferrous scrap prices go higher on the export markets. Here is what our #1 trading source had to say:

Coking Coal prices have doubled ++ and driving prices on uptick in China, SE Asia as well as in the EU…

Scrap prices we hear are about to jump as well from USD15-40/mt in Coming 1-2 weeks.

All of this is driving the markets now and IF there is no drastic reduction in Coking Coal and Fe prices in coming 2 months, prices for Slabs and Billets in 1Q 2017 will be USD400/mt!!
Source:ChinaDaily

Vertraagd	7 mrt 2025 17:36
Koers	30,480
Verschil	-1,690 (-5,25%)
Hoog	31,770
Laag	30,480
Volume	4.319.928
Volume gemiddeld	3.001.505
Volume gisteren	8.534.283

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

Arcelor Mittal « Terug naar discussie overzicht

Nieuws en info hier plaatsen (deel 4)

Meedoen aan de discussie?

Direct naar Forum

Detail

ArcelorMittal nieuws