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voda 17 november 2016 17:21

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New steel fund established for Scottish start ups

Scottish Construction Now reported that UK Steel Enterprise in partnership with Business Gateway Lanarkshire has launched a new finance initiative that will provide up to GBP 7,500 of funding for start-up companies which can demonstrate growth and employment potential. The ‘Regeneration Fund’ will be available for the next three years and forms part of the additional GBP 1.5 million committed to regeneration in Lanarkshire by the Tata Steel subsidiary, originally created in response to the mothballing of the Dalzell and Clydebridge steel plants, which are now back in production.

Motherwell-based Marton Fabrication is the first company to receive the new funding. Mr Derek Ross MD is starting his own business after the company he previously worked for closed, allowing him to continue to service the established customer base. He has 20 years’ experience in the sector and Marton Fabrications will provide a wide range of specialist engineering services, including sheet metalwork, fabrication and engineering assembly to produce bespoke products. Products will range from architectural work, such as handrails, to complex equipment housings for the energy industry.

The funding will allow the start-up to purchase the assets of the business he was previously employed by. Ross brings with him an apprentice and aims to hire two more members of staff in the next year.

Mr Ross said that “When my last company was facing closure due to the owner’s ill health, we discussed the idea of me going out on my own. It was incredibly challenging to acquire the initial capital, so when UK Steel Enterprise and Business Gateway said they would be able to provide investment, I was overwhelmed. He added that “All my experience is in metal fabrication and it’s a triumph that I will be able to continue my trade, as well as provide training for local apprentices.”

Source : Scottish Construction Now

voda 17 november 2016 17:22

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Under valued Chinese rebar shipment must be seized – PISI

Manila Times reported that Philippine Iron and Steel Institute has called the attention of the Bureau of Customs to what it says is the apparent undervalued freight costs of a shipment of 20,000 metric tons of reinforcing steel bars from China.

PISI said that the shipment arrived at the Port of Subic on November 2. The consignee, Mannage Resources Trading Corp declared in its import documents freight and insurance costs totaling PHP 1.9 million or less than USD 2 per tonne in freight and insurance costs. Freight and insurance costs form part of the basis for determining the duties an import shipment should pay.

In a letter to Subic Port district collector Carmelita Talusan on Monday, PISI President Roberto Cola said that prevailing freight and insurance rates are USD 9 per metric ton from China to Hong Kong; USD 15 per MT from China to Singapore; and USD 18 to USD 25 per MT to the Philippines.

Mr Cola said that under the newly signed Republic Act (RA) 10863 or An Act Modernizing the Customs and Tariff Administration, fraudulent declaration of import documents may result in the seizure and forfeiture of the imported goods.

Mannage was also involved in a controversial shipment of 5,000 tons of imported steel bars in May 2016 which were ordered held by Subic customs officials for lack of permits and a legitimate import clearance certificate. The shipment was eventually released despite PISI pleas to have the rebars checked for safety. Local rebar manufacturers have to submit one sample per 20 MT of production for tests to protect public safety.

Source : Manila Times

voda 17 november 2016 17:23

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Iran to attain self-sufficiency in iron ore pellet production

Iran Daily reported that Iran will achieve self-sufficiency in the production of iron ore pellet once the second pelletizing plant of Golgohar Mining and Industrial Company in Kerman Province becomes operational.

Announcing this, the company's Mr Nasser Taqizadeh MD said that First Vice President Es'haq Jahangiri will attend the inaugural ceremony of the plant in the near future. He said that an investment to the tune of USD 283 million has been made on the project, which, he noted, has provided 500 direct job opportunities as well as 2,000 indirect job opportunities.

Mr Taqizadeh put the annual production capacity of the plant at five million tons adding that the figure will reach seven million tons in the near future.

Iran's current production capacity is currently 24 million tonnes per year whereas the demand for iron ore pellets stands at 30 million tonne, said the official adding that the second pelletizing plant of Golgohar Mining and Industrial Company will meet the requirements of the domestic steel industry.

Source : Iran Daily

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voda 17 november 2016 17:24

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Is winter coming for steel industry in China?

Xinhua reported that this year winter is set to be colder than ever, and the same could probably be said for the Chinese steel industry. A new round of heavy snow is set to hit Xinjiang but, as the old Chinese proverb says, if winter comes, can spring be far behind?

The second day after hard snow, Yili Iron and Steel turned off a 530 cubic meter boiler. This marks the beginning of attempts to reduce output every winter. The capacity-cutting period can last up to four months.

Mr Yuan Zhizhong, deputy chief engineer of the group, said "Winter in Xinjiang is long and cold, leading to a sharp shrink in market demand from the construction sector. So capacity-cutting becomes routine for local steel makers.

Last year, Yili Iron and Steel, northwest China's Xinjiang Uygur Autonomous Region, registered a loss of CNY 600 million (USD 87 million). Many other major Chinese steel manufacturers faced similar difficulties.

Despite a recent rebound in steel prices and market demand, oversupply still hinders the industry. Oversupply in China's steel sector has caused years of plunging prices and factory shutdowns amid a sluggish economy.

Across China, steel makers are encouraged or forced to shut down or reduce output to shed unnecessary production. China has shut down several steel plants with a total capacity of over 90 million tonnes over the past five years. It plans to further reduce crude steel output by 100 million to 150 million tonnes by 2020, according to the ministry's 2016-2020 plan.

Source : Xinhua

voda 17 november 2016 17:25

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ArcelorMittal South Africa CEO sees grim future

Business Day reported that ArcelorMittal South Africa CEO Mr Wim De Klerk says if the country's biggest steel maker does not get safeguard protection from the government, in addition to 10% basic tariff protection, from a flood of mainly cheaper Chinese imported steel, the South African steel industry is likely to become extinct.

He also says the company is set to make a huge loss in the six months to December.

This comes after the South African unit of ArcelorMittal made a net loss of ZAR 8.6 billion to December 2015. ArcelorMittal SA produces 75% of the country's steel.

Mr De Klerk also confirmed that ArcelorMittal SA is bidding to reopen the structural steel mill of the defunct Evraz Highveld Steel and Vanadium plant. He said “It is a done deal from our point of view, but needs board approval.”

Source : Business Day

voda 18 november 2016 16:23

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HS2 steel will be at least 95 per cent British-made - Transport Secretary

Express reported that UK’s Transport Secretary Chris Grayling pledged the project will boost British steel production. Mr Chris Grayling confirmed the majority of the route for the proposed GBP 55.7 billion high speed railway earlier this week.

Labour's Nic Dakin who represents Scunthorpe, a major hub for UK steel production, said during transport questions in the Commons said "I very much welcome the minister's very positive comments about the quality of British steel and that 95 per cent of steel in rail is UK steel. Does he believe that that record will be matched with the steel used for HS2?"
Related articles

Mr Grayling replied "Absolutely, and not just the steel industry. My view is that HS2 is a great engineering project for the United Kingdom. I was pleased in the first set of contracts that we announced this week of a substantial British presence. I've been very clear that those firms that hope to participate in this project should expect to leave a skills footprint and an expertise footprint behind in the United Kingdom. "Those who fail to do so should not expect to find themselves at the front of the queue when it comes to contracting."

Phase 1 of HS2 is due to open in December 2026 and it will see trains travel between London and Birmingham before proceeding from Birmingham on to the existing West Coast Main Line. A second Y-shaped phase will then open in two stages with phase 2a from the West Midlands to Crewe due to launch in 2027. Phase 2b, from Crewe to Manchester and from the West Midlands to Leeds, South Yorkshire and the East Midlands, will open in 2033.

Express
Source : Express

voda 18 november 2016 16:24

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Nucor-JFE Steel Mexico orders a hot-dip galvanizing line and recoiling line from SMS group

Starting in the second half of 2019, NUCOR-JFE MEXICO will operate the new hot-dip galvanizing line from SMS group, which is designed for a yearly production of 400,000 tons of high-quality galvanized strips for the automotive industry.

Source : Strategic Research Institute

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voda 18 november 2016 16:26

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Tung Ho Steel orders water treatment plant from Danieli

Following the order for a new Danieli 0.6 Mtpy high-speed rolling mill for long products to be installed in the Phu My industrial zone, Tung Ho Steel has contracted Danieli to supply of a new water treatment plant to complete the rolling mill project. The new WTP will complete the Fuco high-speed rolling mill project, which is under execution

Source : Strategic Research Institute

Bijlage:

voda 18 november 2016 16:26

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Explosion in Gerdau plant causes death of 3 workers in Minas Gerais

An explosion at a Gerdau plant in Ouro Branco, Minas Gerais, left three dead and one wounded. The blast occurred around 4PM on Monday, but was confirmed only Tuesday by the company.

According to the steelmaker, the workers were service providers of the company Convaço and were maintaining an equipment called a gasometer tower, used in the production of energy from gases released in the steelmaking.

The workers were Douglas Eduardo Neto, 24, Allan Roger Prado, 23, and José Cezar Miguel, 51, the company said. Eli Carlos Almeida Fernandes, 36, who was also working on the maintenance of the equipment, was discharged this morning from the Ouro Branco Foundation Hospital (FOB), where all were taken.

The Union said that “We know and we have already alerted Gerdau Ouro Branco's management that the company's equipment is in poor condition and that the maintenance is superficial," the union's board of directors reported in the Tarugo news report on Wednesday. According to the union, in July of this year Gerdau and other companies in the region were alerted about the high number of accidents."

According to the Metalworkers' Union, Gerdau will be required to create a joint commission between the company and the trade unionists to determine the causes of the accident. The board also said it plans to file suit with the Labor Ministry if Gerdau does not accept the proposal.

The union will also make the legal department of the board available to the families of the three workers who were killed in the blast.

Source : Local Agency

voda 18 november 2016 16:29

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Chinese steel sector cuts capacity analysis by Mr Andy Home

Noted Reuter columnist Mr Andy Home said that according to the country's top economic planning body the National Development and Reform Commission, China has already met its target of cutting 45 million tonnes of steel production capacity this year. It may even eliminate a bit more over the last couple of months of 2016. The country is ahead of schedule in terms of its originally stated goal of reducing its bloated steel sector by 100 to 150 million tonnes over a five year period. This shouldn't come as a big surprise.

Beijing's planners do targets well, particularly when they have something to prove. In this case, staving off international pressure to do something about the flood of steel product exports roiling other producing nations.

The only problem is that Chinese steel production is rising, not falling. So too are exports. True, their growth has slowed sharply from last year's supercharged 20 percent to "just" 2.4 percent in the first nine months of this year. But that may yet prove to be only a temporary respite in the slide to full-out trade war in the global steel sector.

The combination of capacity cuts and higher production seems, at first glance, a counterintuitive outcome. Firstly, while there is no doubting Beijing's determination to slim its huge steel sector, there is a serious question mark as to whether it's doing enough.

China's own steel body, the China Iron and Steel Association, has previously estimated excess capacity to be 300 million tonnes, twice the targeted closure rate.

Secondly, it has never been clear what exactly is being closed.

If it is long disused mills in China's rust belt, clearly it won't have any impact on actual run rates.

If it is "zombie" capacity, mills that flit in and out of activity largely to keep servicing distressed debt, it won't have much more effect. That's not to say closing such capacity isn't a good thing. It's just that it's a good thing first and foremost for China itself rather than the rest of the world's steel producers.

Reuters
Source : Reuters

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voda 18 november 2016 16:31

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Indian steel industry gross NPAs at mammoth INR 1.15 trillion

Press Trust Of India reported that gross non performing assets in the domestic steel sector, which accounts for 2% of India’s GDP, are around INR 1.15 lakh crore.

Parliament was informed that a non performing asset is defined as a credit facility in respect of which the interest and/or installment of principal has remained ‘past due’ for a specified period of time.

In simple terms, an asset is tagged as non performing when it ceases to generate income for the lender. Non-performing assets are problematic for financial institutions since they depend on interest payments for income. Troublesome pressure from the economy can lead to a sharp increase in non-performing loans and often results in massive write-downs.

Total loan exposure to India’s over USD 100-billion steel industry, the world’s third largest, is about INR 3.13 lakh crore.

Minister of State for Steel Vishnu Deo Sai said in a written reply to the Rajya Sabha said that “The total exposure of steel industry is about Rs 3.13 lakh crore out of which Gross NPA is about Rs 1.15 lakh crore. This works out to 36.94 per cent of the total loan outstanding as on March, 2016.”

He added that at the instance of government, the Reserve Bank (RBI) recently reduced overall policy rates that are expected to get translated into reduction in actual lending rates.

The minister added that the RBI accorded a flexible refinancing repayment option, popularly known as 5:25 scheme for long-term infrastructure projects, including steel where total exposure of the bank is above INR 500 crore.

The central bank has also brought in Strategic Debt Restructuring (SDR) scheme to help debt ridden companies including steel companies.

Mr Sai said that further, in June 2016, RBI brought in another scheme called Scheme for Sustainable Structuring of Stressed Assets, also known as S4A scheme, with the same objective.

Government has taken a slew of measures to give a boost to domestic steel players. He said that “They include imposition of antidumping and safeguard duties on a range of steel products with objective of eliminating/reducing low priced unfairly treaded steel from countries such as China which negatively impacted profitability of the domestic steel producers and simultaneous loss of market share.”

Mr Sai noted that the government has initiated simultaneously wide ranging investment plans in infrastructure which is expected to increase the demand for steel.

Millennium Post

Source : Indian steel industry gross NPAs at mammoth INR 1.15 trillion

Bijlage:

voda 18 november 2016 16:32

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Chinese steel exports to remain high in 2017 - Fitch

Fitch Ratings expects Chinese steel exports to remain at around 100 million metric tons in 2017, due to flat apparent consumption and slow capacity rationalisation.

Source : Strategic Research Institute

voda 21 november 2016 17:56

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Staalproductie hoger in oktober

Gepubliceerd op 21 nov 2016 om 17:10 | Views: 741

BRUSSEL (AFN) - De wereldwijde productie van staal lag in oktober met 136,5 miljoen ton 3,3 procent hoger dan een jaar eerder. Dat meldde de World Steel Association maandag op basis van cijfers die zij verzameld heeft in 65 aangesloten landen.

China nam iets meer dan de helft van de totale wereldproductie voor zijn rekening.

Chinese fabrikanten leverden 68,5 miljoen ton af, 4 procent meer dan in oktober 2015. Rusland voerde de productie met 2 procent op tot 5,9 miljoen ton en Turkije met 8,6 procent tot 3 miljoen ton.

In Duitsland daalde de productie met 3,7 procent tot 3,5 miljoen ton. De Amerikaanse staalproductie viel met 6,4 miljoen ton 2,5 procent lager uit dan een jaar eerder. In Brazilië ging de productie met 8,8 procent omlaag tot 2,7 miljoen ton.

voda 21 november 2016 19:57

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Mittal niet meer Top-10 list?

Jullie kunnen ook geen dag zonder Voda nieuws hé? :-)

SeAH Steel to acquire two steel pipe plants in Texas

Business Korea reported that as part of its preemptive move to deal with rising global trade protectionism, SeAH Steel is seeking to acquire the assets of oil country steel tube post-treatment plants in the United States.

According to steel industry sources on November 17, SeAH Steel has decided to take over the assets of oil country steel tube post-treatment plants in Houston, which are owned by Laguna Tubular Products headquartered in Mexico, and is in a final round of talks. Laguna’s Houston plant has the post-treatment facilities to produce steel pipes, including heat treatment and water pressure tests. SeAH Steel is also trying to acquire a Houston plant run by Russia-based OMK Tube Inc.

At OMK Tube’s Houston plant, there are facilities for both production and post-treatment of steel pipes. The takeover price of the two Houston plants is estimated at around US$100 million (118.05 billion won).

Industry analysts interpreted SeAH's latest move as an effort to get around the U.S.’ anti-dumping duties imposed on imported steel products. The U.S. government made a preliminary determination on imposing an anti-dumping duty of 3.8 percent on Korean-made steel oil country steel tubes in October. It will make a final determination early next year but the anti-dumping duty can increased as President-elect Donald Trump, who has pledged to tighten import regulations in order to protect American industry, takes office in January.

Business Korea

Source : Business Korea

voda 21 november 2016 19:58

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POSCO Chairman embroiled in controversy over appointment

Korea Times reported that POSCO Chairman Kwon Oh-joon is embroiled in suspicions that he was appointed to the top job through unfair procedures, dealing another blow to the steelmaker as it faces suspicions over its dubious relationship with President Park Geun-hye's confidant Choi Soon-sil.

In the final interview to appoint the eighth CEO of the nation's largest steelmaker, Mr Kwon and his competitor Jung Dong-hwa were allegedly given an unprecedented English interview session, an advantageous condition for Kwon who earned his master's and doctoral degree in North America.

Mr Kwon's appointment was believed to be an underdog's upset win. Kwon was a lesser-known engineer in charge of POSCO‘s technology department while Jung was already heading the steelmaker's affiliate POSCO Engineering & Construction as a vice chairman. Hence, Jung was widely believed to claim the upper hand in the two-way rivalry.

The interview committee for appointment of the POSCO CEO was composed of outside nonexecutive directors, including Yonsei University Honorary Professor Lee Young-sun, Samchully Bicycle Chairman Han Joon-ho, Seoul National University Law Professor Lee Chang-hee and Doosan Corp. Vice Chairman James Bemowski

During the interview, Kwon and Jung were suddenly given English questions during the interview held in January 2014. They were also asked to explain their visions as a POSCO CEO in English. There were interpreters but they were not available for interviewees, sources said.

It was the first time for POSCO CEO candidates to be interviewed in English.

Receiving a master's degree from the University of Windsor in Canada and doctoral degree from the University of Pittsburgh in Pennsylvania, Kwon had no problem with the session. However, it wasn't the case for Jung who has spent his entire education and career in Korea.

He told a local news agency by telephone that he was very embarrassed back then. Mr Jung said that "I was not told there would be an English Q&A session before the interview so I asked for interpretation, but my request was not accepted.”

Korea Times

Source : Korea Times

voda 21 november 2016 20:00

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Two persons injured as pipe bursts in RD Forge in Ghaziabad

Times Of India reported that two persons were seriously injured in a blast that took place in a steel manufacturing unit in Kavinagar Industrial area on Friday morning. According to police, the mishap took place after a hydraulic machine developed some snag leading to the bursting of pipe. Sixtyone year old Shaukat and 44 year old Brahmdev, who were in the vicinity, suffered burn injuries and had to be rushed to a private hospital where their condition remained serious.

Mr Awdesh Yadav SHO Kavinagar police station said that "At around seven in the morning, a blast took place in R D Forge, a steel-manufacturing factory in which two workers were injured. The workers, Shaukat and Brahmdev, were first rushed to nearby Sarvoday Hospital. From there, they were referred to Fortis Hospital in Noida where their condition remains serious. The matter was being investigated but no FIR had been lodged. We are awaiting the statements of the injured workers and only after that we will proceed.”

According to Vikram Rathi, an acquaintance of Gaurav Garg, owner of the factory, there was some problem with the hydraulic machine leading to bursting of pipe. He said that "I rushed to the factory after I got the news and took the two injured workers to a nearby hospital. According to doctors, they are out of danger.”

Times Of India

Source : Times Of India

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voda 21 november 2016 20:02

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Commencement of VAM BRN Commercial Operation in Brunei
Published on Mon, 21 Nov 2016

Nippon Steel & Sumitomo Metal Corporation and Sumitomo Corporation announced that VAM® BRN Sdn Bhd a joint venture set up in Brunei by NSSMC, Sumitomo, and Vallourec Tubes SAS has commenced its commercial Operation as of November 2016. VAM®BRN will provide OCTG pipe threading services in Brunei, with its threading capacity of 18,000 tonnes per year.

For more than 40 years, NSSMC and Sumitomo have been supplying seamless OCTG pipes to Brunei Shell Petroleum Co Sdn a leading upstream oil and natural gas company in Brunei for drilling operations. Commencement of VAM® BRN commercial Operation will contribute to the development of local employment, and knowledge transfer from Japan to Brunei. In conjunction with this, from January 2017, Sumitomo will commence its Supply Chain Management Service with its own stock yard adjacent to VAM®BRN.

As drilling conditions are becoming increasingly harsh, the demand for premium connections for seamless OCTG pipes for crude oil and natural gas industry is on the rise. Commencement of VAM®BRN commercial Operation will develop a system for stable supplies of seamless OCTG pipes.

1 VAM® is a registered trademark of Vallourec Oil and Gas France for premium connections threaded on seamless pipes which are being jointly developed by NSSMC and Vallourec Oil and Gas France.

Company profile: VAM® BRN
Name: VAM® BRN Sdn Bhd
Location: Near Bandar Seri Begawan, Brunei-Muara District

Shareholders: -Nippon Steel & Sumitomo Metal Corporation: 60%
-Sumitomo Corporation Group: 30%, consisting of:
Sumitomo Corporation Asia & Oceania Pte. Ltd: 12%
Sumitomo Corporation: 18%
-Vallourec Tubes S.A.S.: 10%

No. of employees: About 110
Investment amount: Approx. 36 million US dollars
Main facilities: Small-diameter pipe threading line, middle-diameter pipe threading line
Operation capacity: 18,000 tons

Source : Strategic Research Institute

voda 21 november 2016 20:03

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Aktobe rail and steel plant starts exporting to Russia and Uzbekistan

The press service of the Kazakh prime minister said that Aktobe rail and steel plant put into commissioning in June this year started its first export deliveries, on Thursday. The plant received certificate to export its products to Russia.

First Vice General Director Mr Marat Ibragimov said the company signed a contract for the supply of 15,000 tons of rail products to Uzbekistan. He said that "As of 9 November this year, 330.8 tons were shipped to the Uzbekistan Temir Yollari (Uzbekistan Railways). Earlier in October, the plant shipped the first batch of rails in the amount of 280.6 tons to Russia.”

According to the Development Bank of Kazakhstan, the plant plans to produce up to 80 thousand tons of rails in 2016, over 90% will be supplied for the needs of the Kazakhstan Temir Zholy JSC, the rest will go for export to neighboring countries.

The Aktobe plant is the only manufacturer of long (120 m) thermo strengthened rails on the territory of the Eurasian Economic Union. Plant's construction began in April of 2013. The total project cost amounted to 82.7 billion tenge.

The production capacity is 430 thousand tons of rolled products a year, including 200 thousand tons of thermo strengthened lengthy rails, 230 thousand tons - molded products for the construction sector.

AKI Press

Source : AKI Press

Bijlage:

voda 21 november 2016 20:05

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Worker falls into blast furnace at Aarti steel plant in Odisha

Odisha Sun Times reported that in a tragic incident, a youth died after falling into a blast furnace at Aarti steel plant in Odisha’s Athagarh last night. The deceased was identified as Jitendra Nayak (20) of Bailo village under Khuntuni police station.

According to reports, Nayak fell into the furnace while working at the plant at around 11 PM.

He was rescued in a critical condition and rushed to SCB Medical College and Hospital in Cuttack. However, Nayak was declared brought dead there.

Tension gripped the plant following the incident as irate villagers of Bailo staged a dharna in front of the plant demanding compensation for the family members of the deceased.

Source : Odisha Sun Times

voda 21 november 2016 20:06

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Tata Steel's debt declines marginally in July-September quarter

IB Times reported that private sector steel manufacturer Tata Steel witnessed a fall in its gross debt by INR 1,159 crore in the second quarter (July to September period) of current financial year to INR 84,316 crore on the back of favourable exchange movement. However, its net debt level has increased by INR 306 crore to INR 75,563 crore during the quarter, the company revealed during an investor presentation.

Analysts have pointed out that debt reduction effort of the steel major is likely to be constrained by the falling operating income from Indian operations.

Edelweiss Financial Services in a research note said that "On account of lower EBITDA (earnings before interest, tax, depreciation and amortization), we expect a scope of debt reduction to further curtail.”

In the just concluded quarter ending September, EBIDTA (operating income) from Tata Steel's Indian operations has declined. However, its group operating income has increased by 66 percent to INR 2,992 crore.

Income per tonne of steel (EBITDA/tonne) for Indian operations declined to INR 7,620 in the second quarter from INR 10,455 in the first quarter mainly because of a drop in realisations, seasonal slowdown and ramp-up costs at its greenfield Kalinganagar plant. However, the company had reported price improvement in its European operations.

Source : IB Times

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