Eurobench.com

voda 4 april 2017 16:51

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Fitch maintains rating watch status on Tata Steel UK

Fitch Ratings said it has maintained the rating watch status on long term ratings of Tata Steel and its UK-based arm.

Source : Strategic Research Institute

voda 4 april 2017 16:52

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New Steel Plate for Liquefied-Natural-Gas Storage Tank

A new steel plate for LNG storage tanks has been developed by optimizing chemical composition and applying recent thermomechanical-control-process (TMCP) technology.

With demand for LNG rising, construction of above-ground LNG storage tanks is expected to increase. 9% Ni steel plate has excellent strength and cryogenic toughness. For LNG storage tanks, a double-integrity structure has been proposed to prevent peremptory destruction.

Although a high safety standard is demanded for such steel plates, in terms of saving construction costs of LNG tanks, a reduction in the amount of nickel used was desired. The new steel plate, equivalent to conventional 9% Ni steel, has been developed by adopting a TMCP to obtain the refined microstructure and a large amount of retained austenite.

Development of New Steel Concept
In the development of the new steel, key technologies are application of the TMCP and optimization of chemical compositions. The properties of the base plate and welded joint of the new steel are equivalent to those of 9% Ni steel, with excellent brittle-crack-initiation resistance and brittle-crack-propagation-arresting capability.

A TMCP is a production process wherein the rolling temperature and cooling rate after rolling are controlled. TMCP technology, which improves strength, toughness, and weldability, was developed for use in shipbuilding steel or line-pipe steel. TMCP technology has been applied to plates for offshore structures, high-rise buildings, bridges, and several other structural applications. Microstructures obtained with TCMP technology are finer than those obtained with conventional processes.

The production process of the new steel is a combination of controlled rolling, accelerated cooling, and appropriate heat treatment (intermediate heat treatment, known as lamellarizing). A very fine martensitic microstructure is formed by controlling the previous austenite grain size in the heating process and rolling conditions in the uncrystallized zone and quenching in the accelerated cooling process after rolling. Retained austenite, which improves toughness, is also formed by lamellarizing and tempering after direct quenching. The amount of retained austenite of the new steel is greater than that of 9% Ni steel.

Compositionally, the new steel reduces silicon (Si) and adds manganese (Mn), chromium (Cr), and molybdenum (Mo). By decreasing Si, precipitation of cementite and autotempering during cooling at welding are promoted. The toughness of the heat-affected zone (HAZ) is improved. Furthermore, contents of Mn, Cr, and Mo are controlled to ensure appropriate hardenability of the HAZ. According to research about high-tensile-strength steel, the HAZ microstructure should be a mixture of martensite and lower bainite for improved toughness. The same trend is noticed in the new steel; that is, when hardenability is high, martensite is formed in the HAZ and autotempering is suppressed. In the case of low hardenability, upper bainite, which deteriorates the toughness of the HAZ, is formed.

Owing to the optimization of the production process and chemical composition described here, the new steel for LNG storage tanks has properties of the base plate and welded joint equivalent to those of 9% Ni steel.

Mechanical Properties of Base Plate and Welded Joint.
To evaluate the fitness of the new steel for the inner material of the LNG storage tank, test plates were manufactured in actual production equipment, reflecting the findings mentioned in the preceding subsection. The test plate thicknesses are 6, 10, 25, 40, and 50 mm. Results of the tensile test and Charpy impact test of base plates met established standard requirements for 9% Ni steel. The crack-tip-opening-displacement values of the new steel are of a high level and are equivalent to those of conventional 9% Ni steel.

Large-Scale Fracture Test
To evaluate the safety of LNG storage tanks, large-scale fracture tests were conducted.

The resistance to brittle-crack initiation was evaluated with a cross-weld notchwide plate tensile test simulating the T-cross welded part of an actual LNG storage tank. Brittle fracture was not observed in any specimen. All specimens yielded thoroughly and fractured over maximum load. The fracture-stress values of all specimens at –165°C exceeded 750 MPa and were at the same level as those of 9% Ni steel. It was confirmed that the resistance to brittle-crack initiation of the new steel is of a high level and is equivalent to that of conventional 9% Ni steel.

Brittle-crack-propagation-arresting properties were evaluated with a duplex test. It was confirmed that a brittle crack was immediately arrested after penetrating the test plate from an embrittled plate under an applied stress of 393 MPa, which is equivalent to design stress. It was confirmed that the new steel had excellent brittle-crack-propagation-arresting properties, similar to those of 9% Ni steel.

Approach to Practical Application of New Steel. Assuming that the new steel and 9% Ni steel are welded together, properties of the welded joint of 7% Ni steel and 9% Ni steel were also evaluated. It was confirmed that the welded-joint properties of different materials were equivalent to those of identical materials. Considering the actual construction work of a tank, the influence of repair welding on welded-joint toughness was evaluated and no faulty result was found. Fatigue properties were also evaluated and were found to be equivalent to those of 9% Ni steel. Furthermore, physical constants were required. Young’s modulus, Poisson’s ratio, and thermal-expansion rate of new steel have been evaluated and were found to be equivalent to those of 9% Ni steel.
Construction and Operation of an LNG Storage Tank Made of New Steel

First Application of New Steel for an LNG Storage Tank
For the first time, the new steel with Ni composition of 7.0–7.5% was adopted by Osaka Gas for application to the above-ground LNG storage tank in Senboku Terminal 1, having a capacity of 230 000 m3 and being the largest of its kind in the world (Fig. 2). The LNG storage tank has a diameter of 90 m and a height of 60 m.

voda 4 april 2017 16:53

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Deel 2:

Manufacturing of New Steel for LNG Storage Tank
For the LNG tank of Senboku Terminal 1, approximately 3,700 tons of the new steel were required. Plates having thicknesses of 6.0–45.8 mm were used for the roof, knuckle, shell, and bottom. Yield strength and tensile strength were stable even for a wide thickness range.

Construction of LNG Storage Tank Made of New Steel
The construction of the LNG storage tank began in September 2012. Regarding material workabilities such as gas cutting, roll bending, and press bending, the new steel was equivalent to the conventional 9% Ni steel plate. No faulty result was found with respect to the mechanical properties. With regard to weldability such as thermal deformation, penetration, and effect of residual magnetism, the new steel was equivalent to the conventional 9% Ni steel plate.

Operation of the LNG Storage Tank
The construction of the tank was completed in November 2015 as planned. The operation of the tank, including other facilities, launched successfully, and has carried on smoothly.

Mechanical Properties of the New Steel
For the standardization of the new steel for LNG storage tanks, appropriate ranges of chemical composition were studied, especially the lower limit of Ni content of TMCP-type steel for LNG storage tanks. Safety against fracture was estimated for both 7.1% Ni (Heat A) and 6.3% Ni (Heat B). For both Heat A and Heat B, resistance to brittle-crack initiation is equivalent to that of the 9% Ni steel. Both steels show excellent brittle-crack-propagation-arresting properties at LNG temperature (–165°C). From these studies, the new TMCP steel was judged to have excellent fracture toughness at LNG temperatures within the range of Ni composition of 6.0–7.5%.

Source : SPE.ORG

Bijlage:

voda 4 april 2017 16:55

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SMC plans to invest USD 33.6 billion in 3 new projects

Manila Times reported that San Miguel Corp is planning to invest about USD 33.6 billion in three major projects including a new oil refinery, an integrated steel mill, and ocean tidal power.

SMC President and Chief Operating Officer Ramon Ang told reporters in an interview last week that the new investments will help meet the growing demand for oil and steel and provide a new source of renewable energy.

He said that “We’re studying to build an oil refinery with a capacity of 250,000 barrels a day, which can produce petrochemicals and aromatics. It’s worth USD 15 billion but the partner is not yet finalized.”

SMC subsidiary Petron Corp., the country’s largest oil refining and marketing company, has a nominal capacity average of 160,000 barrels daily compared to average Philippine consumption of 350,000 barrels of oil a day.

Mr Ang said that “We’re also studying if we can build an integrated steel mill, which can produce steel from iron ore all the way down to the finished product.” He said that the mill, which will have a stainless steel facility that can produce 300 series and 400 series ssteel, will also cost USD 15 billion.

Mr Ang said that “In an integrated steel mill, it mixes iron ore, nickel, and chromite to produce stainless steel. The resulting product is of high value for export and for domestic use. We can even supply billets to all steel mills in the Philippines.”

Ang said SMC is also looking at harnessing ocean tides to generate energy. He said that “I believe in the next few months we’ll be showing you our projects one by one, but an example is the ocean tidal project which [will have] a capacity of 1,200 megawatts. It’s huge but easy to operate because it doesn’t require fuel to run. You build it once and it will run forever. According to our study, we can build about 18,000 MW of renewable energy out of ocean tidal [power]in the Philippines.”

He explained that “Ocean tidal technology costs USD 3 million per megawatt so this is a big project, whereas clean coal costs USD 2.5 million and dirty coal costs USD 1 million per megawatt.”

This means that with a planned capacity of 1,200 MW, the tidal power project would cost around USD 3.6 billion.

Construction of the steel mill and oil refinery would take three-and-a-half years, while the ocean tidal project will take five years to complete, according to Ang.

For the ocean tidal project, San Miguel group will submit the documents to the Board of Investments and the Department of Energy.

Mr Ang said that “We haven’t filed yet because when we do, we’ll be asked to submit a lot of information. When you file, everything must be ready, otherwise others will just copy it.” He said that “We’ve been studying this project for a long time and we’ve spent time and money on it. We have foreign consultants who have been engaged in this type of project.”

He added that “Finally, it passed the financial feasibility study stage. At first we had a technical feasibility study done and we hired international companies who passed this already. Then we hired a financial feasibility study. When it passes that, the project will be [deemed] bankable and can be executed.”

Source : Manila Times

voda 4 april 2017 16:56

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AISI update on raw steel production in US in Week 13

In the week ending on April 1, 2017, domestic raw steel production was 1,692,000 net tons while the capability utilization rate was 71.4 percent.

Source : Strategic Research Institute

voda 4 april 2017 16:56

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BlueScope announces sale of Taharoa export iron sands business

BlueScope announced it has reached agreement to sell 100% of the shares in its Taharoa export iron sands business to Taharoa Mining Investments Limited a majority owned subsidiary of Taharoa C Block Incorporation (Taharoa C). Taharoa C is a Maori Incorporation with a wide shareholder base that owns the land at Taharoa.

BlueScope’s sale of the Taharoa export iron sands business simplifies the Company’s portfolio and is consistent with the implementation of its strategy to focus on growing premium branded steel businesses, delivering competitive commodity steel supply in local markets and maintaining a strong balance sheet.

BlueScope will make a cash contribution of approximately NZD 51 million and TMIL will assume all liabilities associated with the business including NZD 76.5 million in finance lease liabilities. BlueScope expects a reduction in net debt of NZD 25.5 million at completion.

All material consents, including the local landowners and the shipping provider, have been obtained and the target date for transaction completion is 1 May 2017.

Source : Strategic Research Institute

voda 4 april 2017 16:57

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El Salvador bans all metals mining

Associated Press reported that El Salvador's congress has approved a total ban on the mining of metals in the country, one of the first to enact such a broad ban.

Environmentalists have noted that some other countries have enacted bans on strip mining, open-pit or heap-leaching techniques. But the bill passed Wednesday in El Salvador would not allow any underground, above-ground or artisanal mining for metals. That includes exploration, extraction or processing ore with techniques that often involve cyanide or mercury.

Proponents say the measure is needed to protect the water supply.

Mining for non-metallic substances like salt, stone or sand would still be allowed.

Human rights prosecutor Raquel Guevara called it "a historic day for El Salvador."

Exploration has revealed deposits of gold and silver, but El Salvador has no large-scale metal mining.

Source : Associated Press

voda 4 april 2017 19:56

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Raw material price sentiment diverges

The last few days have been characterised by diverging sentiments in the two main raw materials prices indicators. Iron ore prices in China have fallen and are now set to drop below the $80/tonne CFR China, while scrap levels into Turkey have recovered somewhat following the IREPAS conference in Hungary, lifting the sentiment of the longs steelmakers slightly.

This diverging trend makes it even more difficult for analysts to read the market at the moment, while prices remain overall well above the levels recorded last year at the end of Q1.

In China the sentiment has turned negative, with prices for finished products moving down and a gloomy outlook for iron ore levels. Inventories of iron ore at ports are reaching peak levels and the falling steel prices are set to force iron ore prices to drop below the $80/t mark soon, well below the peak reached in February at above $92/t CFR China.

Meanwhile the rebound in scrap levels has also supported a recovery in Turkish rebar and Black Sea billet export prices, but sources in the market noted that the current spike in scrap levels could be short-lived. “$415 was in the market [... for rebar] on Monday morning, and on Tuesday morning all of a sudden mills are saying $425, but where is the demand, tell me?” commented a Turkish trader. “Scrap suppliers sat together with mills in Budapest and said ‘we have to raise prices’. This will last for maybe ten days.”

In the Western hemisphere, meanwhile, new US protectionist moves continued to attract most of the attention. Last week the US Department of Commerce confirmed antidumping duties against plate imports from a number countries, including Austria, Germany, France, Italy, Belgium, Japan, Korea and Taiwan. This development attracted the fierce opposition of the German steelmakers and came in a week in which the European Commission decided instead to not apply provisional anti-dumping measures on imports from Russia, Ukraine, Iran, Brazil and Serbia.

Kallanish held last week its annual Asian conference in Vietnam, a country currently in the process of boosting its steel output and becoming quickly an important player in the global market. Our Asian editor, Tomas Gutierrez, has put together in this edition the most important topics discussed at the conference, to shed further light on the current trends in the Asian markets.

Source: Kallanish.com

voda 4 april 2017 19:57

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Chinese steel markets turn negative

Chinese steel market sentiment has been dealt a severe blow over the last few weeks, especially for flat prices, with spot HRC in Shanghai trading below rebar for several weeks. In Shanghai, spot 20mm HRB400 rebar was trading at CNY 3,510-3,560/tonne ($509-517/t) by the end of March, down CNY 70/t from a week earlier but just CNY 5/t below the end of February.

Traders reported slower buying as customers wait for better prices. Both traders and customers were expecting mills to announce lower ex-works prices, which they did last Saturday. Shagang’s benchmark HRB400 exworks price was cut CNY 200/t for the first ten days of April to 3,650/t. It also said it was repaying its contact customers CNY 180/t for volumes they had delivered in late-March to compensate for lower spot prices.

Spot 5.5x1,500mm Q235B HRC was trading at CNY 3,320-3,350/tonne ($482-486/t) at the end of March, down CNY 90/t from a week earlier and CNY 425/t lower than the end of February. For now, domestic traders were holding prices above CNY 3,300/t because they were willing to restock at that price. There are growing fears, however, that this is a bluff. Although mills have largely kept official ex-works prices flat for April, they are reportedly offering bigger discounts for volume contracts. Sliding raw materials prices have also generated concerns that mills could lower effective offers further.

The Kallanish index for 62% Fe Australian iron ore fines meanwhile had fallen to $80.26/dry metric ton cfr Qingdao by the end of the month, down $10.8/t from the end of February. China’s iron ore import volumes could hit a new peak in March, with a preliminary estimate from Thompson Reuters showing 97.79 million tonnes of iron ore cargos were scheduled to dock in Chinese ports last month, up from 83.49mt in February and 92mt in January.

Reports suggest Chinese ports are now approaching their physical capacity to hold iron ore and at the current pace of inventory increase will have nowhere left to store iron ore by June. With prices beginning to slide however, there is little incentive to keep adding inventory. With steel prices also expected to slide, there appear to be little chance of 62% iron ore holding in the $80s in April.

Source: Kallanish.com

voda 4 april 2017 19:58

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EU coil markets stable despite delay in duties decision

Last week the main story in the European market was the rumour that European authorities are not set to impose provisional antidumping duties on the imports of HRC from Russia, Ukraine, Serbia, Iran and Brazil, as part of the on-going investigation initiated late last year.

Sources noted that the news revitalised Russian exporters, which started to offer again in the market. But it is worth noticing that the decision not to impose provisional duties does not take away the possibility of definitive measures to be imposed at any time by October this year. A registration process for the import of Brazilian and Russian HRC remains in place and this could always be used to collect retroactive duties in case the European Commission decides to.

Meanwhile HRC prices from domestic Northern European mills remained stable in the market last week at €570-600/tonne ex-works base. Sources in Germany noted that the top-end of the offers (€600/t ex-works base) is currently difficult to be achieved in transactions. Many believe the peak of the market for coil products has been reached and now the mills are trying to hold their levels firm for as long as possible.

A shockwave to the European coils market could be coming from the decision by ArcelorMittal, the largest supplier in the continent, to change its pricing policy. Sources at the company confirmed that the commercial departments across Europe have started offering coils only on effective basis, moving away from the traditional system in which base prices were added to extras. A senior mill source in Northern Europe noted that, if accepted by clients, this will increase slightly the pricing power of the mill and also push other players in the market to follow. Nevertheless Kallanish notes that in some areas this system has already been applied for some years by other mills and that for the moment the transition seems to be smooth in the market.

In the scrap and longs European sector, the situation was gloomier last week. Scrap settlements for April are all looking down across Europe and this is already impacting longs prices in Italy and other countries. The Turkish sentiment for scrap has turned negative since mid-March and the European market has already reacted with the first scrap corrections being noticed in Italy and Spain.

South European rebar exporters are still waiting for the licences to export to Algeria. The local government has opened officially the procedure but the volumes assigned to each importer will not be known before mid-April. As previously reported traders have already been preparing for the imminent reopening of the market by ordering volumes from mills and stocking it at ports, but the process is taking longer than previously expected and having an impact on the activity of Italian and Spanish rebar/wire rod suppliers.

Source: Kallanish.com

voda 4 april 2017 19:59

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US looks ahead to increases spurred by trade

For the second week in a row, US prices remained in a holding pattern as market players wait for the (mostly positive) fall out from new trade cases. The major mover during the week was a positive final anti-dumping decision by the US Department of Commerce on cut-to-length plate from eight producing countries.

With duties ranging from 3.62-148.02%, the ruling is likely to get a rubber stamp from the US International Trade Commission in the coming months, with the following imposition of duties.

Plate product imports had already been languishing due to the chilling effect of the initial filing, but the concrete reality of duties on such a wide swathe of exporting countries should reduce them even further.

Even absent the early year push plate got from scrap prices, mills will be in a position to raise prices with near impunity after the duties are set. The oil country tubular goods market is in a similar position, with a major case against South Korean goods due.

Oil country tubulars prices hit a deep trough early last year, but steadily improving oil prices have normalised demand and stretched inventories thin. That had the dual effect of allowing domestic producers to slowly recoup their prices while they aggressively fought imports in the trade arena. The price gap between domestic and foreign goods is now small, and a win against South Korea will virtually guarantee a new round of price increases in time for the Q3 buying programs.

Not everyone, however, is happy with the new protective curtain the US has put up. End-users are limited in their choices by market practicalities, trade legislation and more stringent Buy America requirements. Even further downstream, threats by US President Donald Trump to impose import tariffs on goods produced by American companies that relocate overseas are forcing companies to use that higher-priced American steel in their capital projects. The prime example here is in the auto industry. Despite claims that President Trump’s policies had little to do with it, Ford has massively pared downs its Mexico capital investment program in favour of builds in Michigan.

The overall picture is one of an absolutely taut US safety net. It’s likely to provide decent spring for US prices in the short-term, but it could very likely snap under too much pressure.

Source: Kallanish.com

voda 4 april 2017 20:00

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Unpredictable Turkish scrap rebounds

Turkish scrap prices remain volatile and unpredictable after rebounding almost $10/tonne last week following their approximately $40-drop over the previous two weeks. Following a US-origin deal that put HMS 1&2 80:20 at $261/t cfr Turkey, last week’s Irepas meeting in Budapest, at which an array of scrap merchants and Turkish mills were present, was abuzz with news of a Turkish scrap booking at a higher price. This was despite many delegates simultaneously talking of expectations that scrap would fall to at least $250/t before rebounding.

After the event a deal was confirmed from the US for 20,000 tonnes of 80:20 at $270/t cfr Turkey and 20,000t of shredded at $275/t. Although a clear increase, there is doubt in the market that this price reflects true market value given it has not been accompanied by an improvement in steel demand. Turkish rebar quotes have consequently risen to $420-430/t fob Turkey.

This immense volatility in prices is not conducive to steel purchasing. Nevertheless, one Turkish mill was heard selling 10,000t of billet to Tunisia at $400/t fob, although mills’ billet quotes are at $405/t fob. A second mill sold a small, 1,500t rebar cargo to East Africa at $425/t fob. Turkish mills' rebar offers to the US are reported at $495/t cfr theoretical weight, with bids at $470/t cfr.

In Iran, SMS was reported to have signed a $400 million contract to supply technology to Mobarakeh Steel (MSC) to expand hot strip capacity at Iran’s largest steelmaker. The deal envisages the construction of a 3.5 million tonnes/ year capacity steel plant, with the provision to expand to 5m t/y.

Meanwhile, in Ukraine Industrial Union of Donbass (ISD)’s Dneprovsky steelworks (DMK) finally succumbed to the railway blockade, ceasing production owing to a lack of coke feedstock and working capital. ISD’s Alchevsk steelworks was idled in February.

Source: Kallanish.com

voda 4 april 2017 20:04

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Special Feature

Date published: 4 April 2017
Kallanish Asia Steel Markets conference report

At Kallanish Asia Steel Markets in Ho Chi Min City over 28-29 March, speakers introduced key trends in the world’s fastest growing steel markets, raw materials markets and changing trade flows. The core reasons for holding our conference in Vietnam were that the country is seeing demand boom 20% per year; it is in the process of commissioning its first slab capacity; and it expects production and demand to grow rapidly out until at least 2035.

The Vietnam Steel Association (VSA) says pig iron production could jump 80% to 4.5 million tonnes in 2017, if Formosa Ha Tinh begins operation of its blast furnace in a timely fashion, says vice-chairman Nguyen van Sua. Doubts over when the plant will actually start means the growth in output may be delayed until 2018.

Vietnam could produce around 19.97mt of finished steel products in 2017, up 12% year-on-year and it also expects Vietnamese semi-finished steel production to increase 47.2% to 11.5mt.

Formosa Ha Tinh is expected to begin production at its first blast furnace this year but a start date has not been confirmed. It had originally expected to begin production in 2015 but an environmental disaster in 2016 resulted in delays and a $500 million fine. Some reports have put the start date in the last quarter of the year, meaning it would contribute little to 2017 data.

Vietnam is likely to become a growing centre of Asian steel exports in the coming years but the key focus for local firms is on booming domestic demand noted Trinh Khoi Nguyen, deputy general director of the Vietnam Steel Corporation (VSC). According to a draft plan being reviewed by the Ministry of Industry, Vietnam’s steel consumption per capita could reach 285 kg/person in 2020 and 543 kg in 2035, with total steel consumption surging from 22.58 million tonnes in 2016 to 27mt in 2020 and 56.7mt in 2035. Steelmaking capacity meanwhile will surge from 32.3 million tonnes/year in 2020 to 66.3m t/y in 2035. Almost all the addition will come from BF-BOF capacity, with its share increasing from 65% in 2020 to 83% in 2035. Slab casting capacity is expected to increase from 0% currently to 32% in 2020 and 53% in 2035.

Vietnamese exports meanwhile should grow significantly. Vietnamese exports rose 18.1% in 2016 to over 4mt, of which finished steel product exports were up 30% to 3.48mt.

Although demand is increasing competition will be fierce, VSC notes. Small and outdated plants may be forced out of the market or merge into larger groups.

Steel trade dynamics shaped by shifting costs Several economies, not only China, have seen steel exports slump in recent months, Graeme Train, commodities analyst at Trafigura Investment, told the conference. While trade barriers have had an impact, high prices in China and the resulting change in the steelmaking cost curve is the key driver, he argued.

In Q4 2015 cheap iron ore and coking coal meant that China was not only competitive against blast furnace producers in many economies, it also had a distinct advantage over EAF steelmakers in almost all regions other than Japan. Increases in scrap prices have however lagged other raw material prices. As a result, Chinese steelmaking costs now appear higher than EAFs in many regions, in particular EAFs in Southeast Asia and Turkey. This situation has led to a recovery in scrap based steelmaking and international scrap trade. How long it can last will depend on the evolution of raw materials prices over the coming year.

“[...Iron ore] prices have to fall,” Macquarie Securities commodity strategist Ian Roper told the conference. He expects Chinese steel demand to resume its downtrend in the second half of 2017, in agreement with Kallanish (see China Steel Intelligence) with real estate sales shrinking by as much as 10%. There was around 70 million tonnes of iron ore supply that resumed either within China or outside of the big three iron ore exporting countries (Australia, Brazil and South Africa) in 2016. As a result, China’s iron ore port stocks have soared to well over 130mt.

The key reason behind inflated raw material prices was explained by Gueorgui Pirinski, market analyst at Noble. Although coking coal surged in the second half of 2016 on the back of supply restrictions, iron ore had actually been following a trend that began several months earlier. The key factor was that Chinese steelmaking margins bottomed out in December 2015, and since then mills had been on a productivity. This caused a divergence in price between higher grade and lower grade ore. Chinese port stocks of high grade iron ore have not increased very much as material is being drawn down by mills, it is the lower value ores that are piling up.

This situation however creates a key risk for steel prices in the coming months. If the trigger for stronger iron ore pricing was the bottoming out of steelmaking margins a year ago, what happens now that margins have peaked and are beginning to contract? A shift in buying habits towards lower grade ores could suddenly bring those unused port stocks into play and fierce competition would likely collapse prices.

“Iron Ore Prices have to fall” says Ian Roper, Macquarie Securities

The next Kallanish Conference will be the Middle East Steel Markets 2017, held this October in Dubai, UAE.

Visit www.kallanish.com for the latest event information.

voda 4 april 2017 20:08

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Word of the Week
Coke Oven Battery

A coke oven battery is a set of ovens that process coal into coke. They are constructed in batteries of ten to 100 ovens that are 20 feet tall, 40 feet long, and less than two feet wide. Coke batteries are usually the dirtiest area in a steel mill complex as they are affected by the exhaust fumes emitted when coke is pushed from the ovens.
Image Vizag Steel

Bijlage:

voda 5 april 2017 16:34

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Vietnam examining Formosa to decide trial-runs

Reuters reported that Vietnam's environment ministry is currently examining Taiwanese conglomerate Formosa Plastics' steel plant in Ha Tinh province to decide whether to allow trial runs.

Formosa Ha Tinh Steel operates an USD 11 billion steel plant on country's central coast that spilled toxic waste that polluted more than 200 km (125 miles) of coastline in April 2016, devastating the environment, jobs and economies of four provinces.

The government said on its website that an environment ministry inspection team is visiting Formosa's plant from April 3 to April 5 and "examining Formosa's overall environmental protection works and carefully reviewing the way the firm has fixed violations."

Formosa has addressed 51 out of 53 violations identified in an investigation into the spill, the ministry said.

Depending on the results of the current inspection, the government will decide whether to allow Formosa to begin test runs at its first blast furnace.

Formosa last month said it would boost investment by about USD 350 million in the project to improve environmental safety measures with the hope of starting commercial production by the fourth quarter of this year.

Source : Reuters

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voda 5 april 2017 16:35

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EUROPIPE to supply 635,000 tons of large-diameter pipe for the new EUGAL pipeline

EUROPIPE GmbH has booked yet another major contract. For the planned European Gas Pipeline Link (EUGAL), EUROPIPE will deliver 635,000 tons of large-diameter pipe with a diameter of 56" (1,420 mm).

Source : Strategic Research Institute

voda 5 april 2017 16:35

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Indian steel mills exported record volumes in 2016-17

Economic Times reported that Indian steel makers like Tata Steel, Steel Authority of India and JSW Steel etc have reported a three fold jump in export volumes during 2016-17, as India emerged as a net exporter of steel.

JSW Steel is estimated to clock export volumes of over 22% of sales in FY17. It exported some 2.37 million tonne in April- December 2016. Mr Jayant Acharya, director (commercial & marketing) JSW Steel said that "Our exports have a wide footprint across some 100 countries. We have developed export markets religiously since the 90s and try to maintain consistency and reliability in our export strategy.”

SAIL saw its exports go up three times in FY17 over FY16 with volumes rising to 7.2 lakh tonne (It) against 2.41 It in FY16. It exported to countries like Bangladesh. Indonesia. Malaysia. Nepal Sri Lanka. Taiwan. Thailand and also to more mature markets like Italy and South Korea. SAIL said it aims at exporting 10 per cent of its total production, doubling volumes in FY18 and consolidating its presence in South East Asia and Europe.

Tata Steel too posted a major jump in exports which accounted for 7% of total sales volume to in FY17 against 2% of sales in FY16. With the company reporting sales of 10.94 million tonne in FY17, the export is estimated at 7.65 It during the year. These went to key buyers in South East Asia, the Middle East. Bangladesh, Nepal and Sri Lanka.

While final data for the whole year April-March FY17 is still being compiled, the trend indicates a 77.6% jump in exports to 6.62 million tonne coincided with a 38.5% drop in steel imports in April-Feb'17.

Source : Economic Times

voda 5 april 2017 16:37

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BMZ to launch production of rolled steel, build wire rod mill

BelTA reported that Belarusian Steel Works, the managing company of the holding company Belarusian Metallurgical Company will get the remaining funds from the Belarusian centralized innovative fund to launch the production of rolled steel and build a wire-rod mill.

A corresponding decree was signed by Belarus President Alexander Lukashenko, BelTA learned from the press service of the Belarusian leader.

This document will help implement the abovementioned project, raise the output and sales of products, increase foreign currency revenues from the export of these products.

Source : Belta

voda 5 april 2017 16:38

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Delong Steel to sell unit for CNY 400 million

Buisness Times reported that steel manufacturer Delong Holdings said its unit Aoyu Steel plans to sell its pig iron production capacity of 1.08 million tonnes and steel production capacity of 1.21 million tonnes, for an aggregate consideration of CNY 400 million (USD 81.1 million).

This follows plans by the Hebei province's 12th National People Congress to reduce steelmaking capacity in the province by 31.86 million tonnes in 2017, and to speed up steelmaking capacity reduction efforts in the cities of Langfang, Baoding and Zhangjiakou.

Source : Business Times

voda 5 april 2017 16:39

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Lower steel intensity in investments in India is a matter of concern – Mr Sushim Banerjee

Mr Sushim Banerjee DG of Institute of Steel Growth and Development in his personal capacity wrote for Financial Express that steel consumption, steel industry, GDP, infrastructure, logistic and supply chain agencies, CRCP In a developing economy growing at an annual average rate of 6.5-7%, the steel consumption is to rise at 7% to 8% in the minimum.

In a developing economy growing at an annual average rate of 6.5-7%, the steel consumption is to rise at 7% to 8% in the minimum. This is the standard theory that has most of the times empirically proved itself and may have been a strong basis for projecting a rising level of consumption in these group of countries as massive infrastructure deficit requiring steel for construction purposes is to be made up by enhanced investment. But why it is no longer happening in India? First, gross fixed capital formation as a percentage of GDP has been declining from 34.3% in 2011-12 to 29.1% in 2016-17 (adv estimates). While public investment has not been rising at a faster rate, the private corporate investment has been lacking.

Official data indicate that whatever private investment is taking place in the start-ups, financial firms, IT and communication units, logistic and supply chain agencies, not much of steel is required for their development and growth. As a result, the steel intensity of investment over the past few years has been steadily going down. It has got further implication. As investment is a primary driving force behind a rising GDP, this also indicates a declining trend in steel intensity in GDP in the last few years. The lower steel intensity in investment is a matter of concern for steel industry in the country.

All over the globe, safety and health hazards are accorded maximum priority in the policy planning of various sectors of the economy. The relevant policies are promulgated and implemented in full. In India, there are many instances of laudable and appropriate policies failing to achieve the targets for want of adequate steps to implement them. In hilly regions there are wide stretches of roads without Crash Barriers on the gorge side to prevent fatal accidents.

In many occasions the landslides from the hilly top make frequent road blockages with considerable damages to the travellers and drivers. In the plain, although government agencies have brought out mandatory stipulations to provide barriers in concrete and steel on specified stretches of the roads, there is little mention of suitable metal barriers (flexible) in the median of the roads as has been done mandatory in countries like UK to prevent collision of the vehicles (including heavy duty trucks) coming from the opposite side and diverting in the other lane especially when the medians are narrow.

In Indian roadways the use of concrete surface or use of continuously reinforced concrete pavement (CRCP) is much lower compared to many advanced and developing countries. The smooth surface of the roads is maintenance free and offer stability in speed and less damage to the vehicles. The frequent sight of polluting road rollers carrying bitumen and pitches in maintaining tracks of the highways and other regular roads could be avoided by making concrete roads. We must consider that it is a onetime cost and would make immense contributions to make our road journeys safe and less hazardous. Use of steel on a wider scale can make signi ficant changes in the elegance, stability and durability of the structures in total road architecture.

There is a huge scope for construction in steel of roadside petrol pumps with necessary amenities for the travellers, the eateries, the sanitary facilities for gents and ladies, the signatures, the road signals, the first-aid centres, the motels and resting places on the highways. These places with appropriate lighting would make long road journeys brighter, safe and enjoyable. The government is spending substantial funds and also inviting private sectors to participate under the PPP mode for particular stretches of the road. The construction of steel-based structures on either side of the road under the above categories would significantly improve the safety aspects of the NHs and other roads.

There are other sectors like residential building and office complexes (currently given a priority in different states) where use of steel is much lower compared to other countries – most of whom produce less quantity of steel than India. The steel industry must put in more efforts to promote steel use in all areas where investment is taking place, both from government and private sectors. The readiness of the government to make more use of steel-based (steel-concrete composite) structures would prompt the private entrepreneurs to follow suit.

It would be the responsibility of the steel industry to develop adequate good quality fabrication facilities all over the country and ensure timely supply of the required profiles and grades of steel needed by the architects and designers.

Source : Financial Express

Vertraagd	11 feb 2025 17:39
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