Eurobench.com

voda 18 april 2017 19:21

0

Chinese steel output, demand near record highs

111 Views

China produced 72 million tonnes of crude steel in March, up 1.8% year-on-year, according to the latest National Bureau of Statistics data - the highest level that has ever been officially reported. Real steel demand was also strong but a closer look at the data shows neither production nor demand exceeded their 2014 peak, Kallanish notes.

Official crude steel output over January-March was up 4.6% at 201.1m t, NBS says. This is still below the 202.69m t reported over the same period of 2014 however, and later adjustments appear to have increased this figure to 203.56m t, although NBS does not detail its adjustments.

This also does not take into account the impact of unrecorded production from induction furnaces. These were producing at their highest levels in 2014, reportedly up to 60m t/y of output, and has been largely halted in the first quarter of 2017.

Based off the official figures, apparent finished steel consumption was up almost 15% month-on-month and 6.26% y-o-y in March at 62.14m t. Over the first three months of the year, apparent consumption was up 10.20% at 173.8m t. Adjusting for market and steel mill inventories, implied end user buying was up 10.8% y-o-y at 72.94m t in March, the highest since May 2014. Over January-March, end user buying was up 3.6% at 149.86m t.

Both crude steel production and finished steel demand were strong in March, but remain below levels seen in 2014, especially once non-reported output is taken into account. A slowdown in inventory decline and the recent slump in buying and prices suggests however that output I particular is too high, and prices may have to fall further until output declines.

Source: Kallanish.com

[verwijderd] 19 april 2017 13:50

0

Apr 19
Iron Ore Reverses A Major Breakout While Bulls Stick By the Australian Dollar
written by Dr. Duru- April 19th, 2017

Bookmark and Share
The list of asset prices that have completely reversed their post-election gains continues to expand. Last week, iron ore officially joined that list…and the sell-off continues apace. On Tuesday night, April 18th, Business Insider reported:

“According to Metal Bulletin, the spot price for benchmark 62% fines fell 4.6% to $63.20 a dry tonne, extending its losses from the multi-year high of $94.86 a tonne struck on February 21 to 33.4%.

It now sits at the lowest level since October 27 last year.”

It was exactly in late October when iron ore broke out to a fresh multi-month high that led to a (very choppy) rally that did not end until February’s multi-year peak. The drop in April alone has been dramatic…

The on-going plunge in iron ore is about as steep as it can get.

Source: Business Insider

Last week Nev Powers, CEO of Fortescue Metals Group, predicted that iron ore prices would settle between $60 and $65 as higher prices were “unsustainable.” Goldman Sachs (GS) also reiterated a $60 price target last week. The chart above shows that prices were in a hurry to drop toward these bearish predictions. The main question now of course is whether price will stop here. Typically sell-offs in commodities significantly overshoot presumed levels of support.

The usual suspects have lined up for blame for the price collapse: there is a huge supply issue exacerbated by weakening demand dynamics. From the Telegraph:

“Global oversupply has been blamed for the latest move in prices, while a slowdown in the Chinese car sector has hit steel prices in the country. This has resulted in steel mills opting to buy cheaper iron ore that is stockpiled in ports, rather than the higher-grade, seaborne metal supplied by the likes of BHP and Rio.”

Clyde Russell from Reuters pointed to the massive supply of inventory in March – ironically a month that also saw record Chinese steel output:

“Much of the focus on why the price gains were unsustainable has been on the rapid build-up of iron ore inventories at Chinese ports, with industry consultants SteelHome saying stockpiles at 46 ports reached a record 132.5 million tonnes in the week to March 31.

This is some 65 percent higher than the 80.5 million tonnes recorded in October 2015, just prior to the start of the strong rally in prices.

While an overhang of inventories was always likely to eventually cause prices to stumble, it also means that imports may be subdued in the coming months as traders and steel mills work through some of the stockpiles.”

Russell was also on top of the iron ore dynamics in January of this year as he declared iron ore was back in bubble territory:

“The strong rally in iron ore is perhaps harder to justify, given the market remains well supplied, and if anything will see more cargoes available in 2017.

China’s iron ore imports reached a record above 1 billion tonnes in 2016, jumping 7.5 percent from the prior year, according to customs data.

This was because of the stronger-than-expected steel production as well as lower domestic iron ore output, which was down 3.6 percent in the year to November, according to official data.”

The Financial Review also pointed out a vicious cycle:

“Sellers are keen to sell and buyers, anticipating further price drops, are reluctant to buy, contributing in part to the volatility. Steel mills in China are still in the midst of tapping their substantial iron ore stockpiles, which means they are unlikely to rush to buy any seaborne cargoes, market sources told Metal Bulletin.”

Demand dynamics have soured:

“‘While April is usually the peak period for consumption, steel demand is far weaker than expected,’ Maike analysts Ren Jiaojiao and Dang Man wrote in a note on Tuesday. ‘In the ferrous markets, iron ore probably faces the weakest outlook in the second half…’

China’s crude steel output reached a record 72 million tonnes in March as mills ramped up output in anticipation of a pickup in demand that has remained slow, government data released on Monday showed.”

Strong Chinese output of steel is not getting a bullish interpretation. Instead, analysts are fearing future monetary tightening from China and the potential for a big air pocket in production once steel finally cools off.

The current sell-off will likely not be as troublesome or traumatic for iron ore miners as the extended swoon from 2011 to 2015. Toward the end of this period, the supply chain quickly rationalized with miners shutting down high-priced supply, drove greater production efficiencies, and slashed debt levels. Marginal costs dropped ever lower. Now miners are lean and mean and will likely weather the current storm very well. Indeed while iron ore miners are locked into downtrends off their 2017 peaks, they are well above the 2016 trough and in some cases still locked into strong uptrends. from that trough.

BHP Biliton Limited (BHP) is down 14.7% from its late January peak and still maintains a healthy uptrend as defined by its 200-day moving average (DMA). BHP just tested this trendline as support.

drduru.com/onetwentytwo/2017/04/19/ir...

voda 19 april 2017 16:52

0

ArcelorMittal op de dip kopen!

Door John Beijer op 19 apr 2017 om 12:05 | Views: 1.950

De relatieve rust van de afgelopen weken is voorbij. We zien de VIX index ook behoorlijk oplopen en de beweeglijkheid op de markten gaat flink toenemen. Politieke kwesties zoals de toenemende spanningen tussen de VS en Noord-Korea, spanningen in Syrië, verkiezingen in Frankrijk en vervroegde verkiezingen in Engeland, dragen niet bij tot een rustig verloop op de markten. Tel daarbij op dat het cijferseizoen in alle hevigheid is losgebarsten en dat dat ook mooie kansen gaat geven.
(ingekort)

Koopmoment ArcelorMittal

Het best presterende fonds binnen de AEX in 2016 was ArcelorMittal.

Vaste lezers van mijn column weten dat ik het koersdoel een aantal keren heb verhoogd van 5,80 naar 6,80 en daarna naar 8,80 euro. De 8,80 euro is begin dit jaar gehaald en de afgelopen weken zien we door gezonde winstnemingen de koers wat terugvallen. Gisteren werd bekend dat in 42 Aziatische havens een record van 133 miljoen aan ijzererts ligt.
IJzererts ging op dit nieuws 4% naar beneden. Afgelopen maand zagen we al dat de Chinese staalproductie op een all time high stond.

Recent heeft kredietratingsbureau Fitch de rating van Arcelor verhoogd van negatief naar stabiel. De omstandigheden in de wereldwijde staalmarkt zijn duidelijk verbeterd en de schulden bij Arcelor Mittal zijn duidelijk verlaagd. De recente daling is in mijn ogen een mooi koopmoment. Onder de 7 euro liggen er mooie kansen voor de langere termijn, zoals u in de onderstaande grafiek kunt zien. Ik verwacht dan ook dat we op korte termijn weer op weg kunnen naar de 8,80 euro, de top van dit jaar. (Bekijk hier de actuele koers van het aandeel ArcelorMittal)

Beijer heeft zakelijk calls AkzoNobel en PostNL. Privé heeft hij longposities in Shell, Ahold en PostNL.

www.belegger.nl/Column/263110/Arcelor...

voda 19 april 2017 16:57

0

Iron ore concentrate output surges last Iranian year

18 Views

Iranian iron ore concentrate production surged 26.3% on-year in the Iranian year through 20 March 2017 to 32.59 million tonnes, Kallanish learns from the Iranian Mines and Mining Industries Development and Renovation Organisation (Imidro).

The largest producers in this period were Gol Gohar with 12.55mt, Chadormalu with 9.06mt, Central Iron Ore with 4.09mt, Middle East Mines and Mineral Industry Development with 3.28mt and Goharzamin with 1.92mt. Mobarakeh Steel’s Sangan dropped one place to sixth with 1.69mt.

In February Imidro chairman Mehdi Karbasian said Iran plans to increase iron ore concentrate capacity to an ambitious 50 million tonnes/year by 20 March 2018 (see Kallanish 16 February). This would be to cater for the country’s hike in crude steel capacity to 32m t/y. Sangan plans to commission in May a new 5m t/y capacity iron ore pelletising plant and 2.5m t/y concentrate plant.

Iran had previously planned to impose last month a 10% duty on exports of iron ore, although this was scrapped following criticism from various industry players, including Imidro.

Iranian production of iron ore pellet and direct reduced iron, meanwhile, rose 17.3% and 8.6% respectively on-year to 25.81mt and 16.39mt in the year through 20 March 2017.

Source: Kallanish.com

voda 19 april 2017 17:56

0

Play The Chinese Steel Cycle With ArcelorMittal

Apr. 19, 2017 5:03 AM ET|4 comments| About: ArcelorMittal (MT)

The steel sector is plagued by price swings that are to a great extent produced by China, alternating acceleration and slowdown of demand.

While it's difficult to get the timing exactly right these cycles are tradable.

Longer-term, though, we continue to be firm on ArcelorMittal; the uptrend is still intact.

We were fairly bullish on steel stocks in general, and ArcelorMittal (NYSE:MT) in particular not so long ago, but something has changed. In fact, it isn't rocket science. As we argued in the previous article, the world steel market is mostly beholden to China.

That's where most of the demand comes from, but also the most supply (China produces roughly half of the world's steel). What's most significant is the imbalance between the two, as China still suffers from a huge overcapacity in the steel sector.

The situation in China is fairly volatile. At times, the government (or local authorities) push on the stimulus accelerator, especially in infrastructure and construction, and the Chinese steel surplus diminishes, prices zoom up, and world steel stocks rally.

You can see this in effect in the following figure:

It's also not hard to guess what happens next. When the stimulus abates, as the Chinese periodically worry about the amount of leverage they have in the economy, then the whole process cranks into reverse.

Apparently we're in such a period, as you can see from the graph. These cycles tend to be reinforced by inventory build-up and drawdowns. Huge inventories get built up in expectation of rising demand, but this can be overdone which requires a period of inventory drawdowns which tends to collapse prices (from Business Insider):

China's statistics bureau said that crude steel output grew by 1.8% to 72 million tonnes in March, more than a million tonnes more than the previous record high of 70.653 million tonnes set one year earlier. The record-breaking monthly output followed news that Chinese iron ore imports rose to 95.56 million tonnes in March, the second largest monthly total on record. Over the year, that left imports at 1.054 billion tonnes, the largest 12-month total on record. It was also 8.9% higher than the total imported in the 12 months to March 2016. The voracious appetite for iron ore has contributed to Chinese port inventories ballooning to 131.35 million tonnes, according to data provided by Shanghai Steelhome, just shy of the all-time record peak of 132.45 million tonnes seen in late March.
So it looks like we're now in the down part of the cycle, but there are some rays of sunshine. Take, for instance, the Australian coking coal prices. They had a huge run-up last year as the Chinese cut their own mining. This also lifted steel prices, just as the subsequent fall put additional downward pressure on prices.

But, as a result of bad weather, Australian coking coal, which is the world's biggest supplier, has zoomed up again and supplies are even disrupted.

In short, steel stocks, and especially the ones like ArcelorMittal which also mines a lot of iron ore, are still beholden to what's happening in China. However, there are a number of ways to lessen that impact:

Protectionism
Cost cutting
Demand
Chinese rationalization
Protectionism

The US (and here) and EU (and here) have introduced substantial tariffs on some Chinese steel products, and this has bolstered prices. It has even, as SA contributor Raul de Frutos showed, led to a considerable price difference between the US and China:

Such price differentials are probably not sustainable long-term, but they are still trending upwards.

Protectionism isn't always delivering a boost to steel stocks, though; when the US government slapped tariffs onto Korean steel products, these disappointed and the effect was negative on steel stock prices.

For reference, ArcelorMittal was helpful in providing the exact details of the protectionist measures in the Q&A part of their Q4CC:

In the US, we have Anti-Dumping (AD) and Anti Subsidy (AS) duties in place on all three flat product categories: CORE, CRC and HRC. These measures are in place for five years. We have ongoing AD/AS cases on plate that we expect the final results in the first half of 2017. Anti-circumvention investigations have been initiated by the Department of Commerce (NYSE:DOC) for CRC and CORE from China (through Vietnam). In Europe, we have final AD duties on CRC and preliminary duties on HRC against China and on QP against China, and expect final duties to be voted in early February 2017 by the EU council. An additional AD investigation on imports of HRC from five additional countries (Brazil, Iran, Ukraine, Russia and Serbia) is ongoing as is the AS investigation for HRC imports from China. In December 2016, a new AD investigation has been initiated on imports of Corrosion resistant steel (HDG non-auto) from China
ArcelorMittal's cost

Voor meer, grafieken etc, zie link:

seekingalpha.com/article/4063296-play...

voda 19 april 2017 18:00

0

Commerce Department starts probe into imports of steel wire rod

Apr. 19, 2017 7:53 AM ET|By: Carl Surran, SA News Editor
The Commerce Department says it is launching investigations into whether imports of carbon and alloy steel wire rod from certain countries are being dumped and/or subsidized.

The investigation affects imports from Belarus, Italy, South Korea, Russia, South Africa, Spain, Turkey, Ukraine, the UAE and U.K.; the subsidization probe covers imports from Italy and Turkey, the DoC says.

The action follows petitions from Gerdau (NYSE:GGB), Nucor (NYSE:NUE), Keystone Consolidated Industries and Charter Steel; other potentially related tickers include X, AKS, STLD, CMC, MT.

www.reuters.com/article/us-usa-steel-...

etc.

seekingalpha.com/news/3257854-commerc...

[verwijderd] 20 april 2017 13:38

0

Investors snap up miners as iron ore keeps falling

Investors aren't giving up on mining stocks, even as the price of iron ore continues to tumble.

The price of Australia's biggest export sank another 4.6 per cent to $US63.20 a tonne on Wednesday, as speculators in China bet the raw materials market is about to be swamped with high-quality ore.

SHARE
SHARE ON FACEBOOK SHARE
SHARE ON TWITTER TWEET
LINK

www.smh.com.au/business/markets/inves...
On Wednesday, resource giants BHP Billiton and Rio Tinto were trading 0.2 per cent and 1.2 per cent higher respectively ...
On Wednesday, resource giants BHP Billiton and Rio Tinto were trading 0.2 per cent and 1.2 per cent higher respectively at lunch time. Fortescue Metals was up 3.7 per cent. Photo: Supplied
But many Australian fund managers are viewing the dramatic drop in the price of 62 per cent ferrous and corresponding fall in mining shares as a prime opportunity to buy into the sector.

On Wednesday, resource giants BHP Billiton and Rio Tinto were trading 0.2 per cent and 1.2 per cent higher respectively at lunch time while Fortescue Metals was up 3.7 per cent.

"At these prices, we think the miners are looking demonstrably cheap," said Garth Rossler, chief investment officer at Maple-Brown Abbott, who has been topping up on mining stocks for some time.

"While there is plenty of volatility in the iron ore price, nobody thought the previous highs of $US80 a tonne was sustainable, so if there is selling in the majors, we're prepared to pick them up."

Advertisement

The 33 per cent fall in iron-ore prices from a mid-February peak has seen Rio Tinto fall 15.4 per cent, while main rival BHP Billiton is off 10.5 per cent.

"So while the stocks have come off a little bit, they are still well off their lows," said Mr Rossler.

Tribeca Capital's Ben Cleary says the price of iron ore is likely to stabilise around current levels and the fund is covering shorts in that space.

"We think there's likely to be an inventory destock and that Chinese fiscal stimulus will be very strong in the second quarter," said Mr Cleary.

Bargain hunting

The key to scooping up a bargain, says Frank Villante, chief investment officer at Celeste Investment Management, is to find a position on the cost curve in the bottom quartile.

"Basically take a view that says, your c1 cost is $15 a tonne and your c3 cost is $30 a tonne. Then take a view that in the medium to longer term, the price is going to do what it has done historically, in recent history anyway.

"Then you try and find the companies in the cost curve who are going to survive almost irrespective of price environment."

Mr Villante also points to periphery stocks that may be swept up in the broad market sell-off but ultimately benefit from continued support from the major miners.

Lycopodium and Monadelphous are both ASX-listed engineering services companies and have solid work booked in providing critical infrastructure to the likes of BHP, Rio and Fortescue.

"With the position on the cost curve and the customers these guys have, they're still making really good dough at current price points," said Mr Villante.

Vale threat

However the iron ore price might still have further to fall, as Brazilian producer Vale prepares to report production of around 84.7 million metric tonnes for the first three months of the year, according to Bloomberg.

The world's biggest producer is ramping up output to compete with Australian mines, which are closer to China.

The global iron ore surplus was 70 million tonnes last year and that will probably increase by an additional 90 million tonnes this year, according to Citigroup, which this week flagged more production from Brazil, Australia, China and India.

www.smh.com.au/business/markets/inves...

voda 20 april 2017 15:59

0

Stevig winstherstel voor Nucor

Staalgigant profiteert van hogere prijzen en volumes.

(ABM FN-Dow Jones) Nucor heeft in het eerste kwartaal flink meer winst behaald dankzij hogere verkoopprijzen, terwijl ook de volumes stegen. Dit maakte de Amerikaanse staalfabrikant donderdag bekend.

De nettowinst van Nucor steeg van 87,6 miljoen naar 356,9 miljoen dollar. Nucor zei dat de winstgevendheid in het eerste kwartaal het hoogst was van de laatste paar jaren.

De omzet van de staalgigant steeg met 30 procent tot 4,82 miljard dollar. De gemiddelde verkoopprijs voor staal lag 21 procent hoger dan een jaar terug, terwijl de volumes ook nog eens met 9 procent toenamen.

De bezettingsgraad van Nucors staalfabrieken kwam uit op 89 procent. Een jaar eerder was dit nog 80 procent.

Outlook

Nucor verwacht dat de winstgevendheid in het tweede kwartaal verder verbeterd ten opzichte van het eerste kwartaal. De staalfabrikant hoopt daarbij te profiteren van een aantrekkende vraag uit de energiemarkten en de niet-residentiële bouwmarkten, terwijl ook de automotive sector naar verwachting sterk blijft presteren.

In de elektronische handel voorbeurs steeg het aandeel Nucor met 2,4 procent.

Door: ABM Financial News.

info@abmfn.nl

Redactie: +31(0)20 26 28 999

Copyright ABM Financial News. All rights reserved

(END) Dow Jones Newswires

voda 20 april 2017 16:19

0

Rio Tinto produceert minder ijzererts

Verwachtingen gehandhaafd.

(ABM FN-Dow Jones) Rio Tinto heeft in het eerste kwartaal van 2017 iets minder ijzererts geproduceerd. Dit bleek woensdag nabeurs uit een trading update van de Brits-Australische mijnbouwgroep.

CEO Jean-Sébastien Jacques sprak van een solide productie in het eerste kwartaal, ondanks de uitdagende weersomstandigheden in West-Australië en Queensland.

In totaal produceerde Rio Tinto afgelopen kwartaal 3 procent minder ijzererts vergeleken met dezelfde periode een jaar eerder. Daarbij verscheepte het bedrijf wel eenzelfde hoeveelheid ijzererts. De productie van aluminium steeg met 2 procent en ook die van bauxiet nam met 2 procent toe.

Op kwartaalbasis verscheepte Rio Tinto 13 procent minder ijzererts en werd er 10 procent minder geproduceerd.

Outlook

Voor 2016 verwacht Rio Tinto onverminderd 330 miljoen tot 340 miljoen ton te verschepen.

Het aandeel Rio Tinto noteerde in Australië 0,3 procent hoger op 59,09 Australische dollar.

Door: ABM Financial News.

info@abmfn.nl

Redactie: +31(0)20 26 28 999

Copyright ABM Financial News. All rights reserved

(END) Dow Jones Newswires

voda 20 april 2017 16:40

0

Viet Nam Steel Association forecast that steel industry will grow at 12%

Bizhub.vn reported that Vietnam steel industry is expected to maintain its recent double-digit growth this year, helped by the recovery of the property market, but it will also face the pressure of trade defense instruments in import markets and competition from cheap steel. Several local steel producers have set lower growth targets this year after a rosy 2016 that enjoyed an improved domestic economy, higher steel prices and application of anti dumping duties on Chinese steel.

Mr Nguyen Van Sua, Deputy President of the Viet Nam Steel Association said that it was necessary for local producers to be cautious about business targets this year because supportive factors were not as good as last year. He said that the association has forecast a sales growth of 12% this year, lower than last year’s 17%.

Mr Tran Dinh Long chairman of the Hoa Phat Group, a leading steel producer in the country, was quoted by enternews.vn as saying that the industry would continue to be fuelled by the recovery of the property market until 2018. However, the group has set an after-tax profit target at VND 600 trillion (USD 263 million), VND 600 billion lower than last year’s result.

Mr Nguyen Ngoc Anh, chairman of steel distribution firm SMC Trading Investment Joint Stock Company, which has set its 2017 after-tax profit target at nearly half of last year, said that the local steel industry was still heavily dependent on global prices. He said that “Steel prices are on a downward trend, so local producers should be cautious.”

According to the Viet Nam Steel Association, the price of construction steel in the local market has dropped by around VND 600-800 per kilogram in the first quarter of this year and that of iron ore is forecast to drop to around USD 74 per tonne by June from USD 80.9 at the end of March. Scrap steel is also on a downward trend at around USD 265-270 per tonne at present from USD 315 in 2016.

The association said that the drops in price were caused by the letting out of inventories as well as competition among producers to maintain their market share.

Source : Bizhub.vn

voda 20 april 2017 16:41

0

Indian 300 million tonnes dream to face lot of hurdels - Report

Business Standard reported that by any reckoning, it will be an uphill task for India to build steel capacity of 300 million tonnes by 2030 against the current 125 million tonnes or so. In fact, if any proof of that is needed, the confirmation came from the government itself when earlier in the year the steel policy was revised principally to give the industry an extra five years to achieve the targeted capacity.

The roadblocks to achieving the ambitious 300 million tonnes capacity that will put India well ahead of every other major steel producing country except China are one too many.

But the main hurdle will be to find 91,000 acres of land to pack new 175 million tonnes capacity to be built both by way of expansion of operating mills and setting up of green-field ventures. The revised policy says the steel ministry will “coordinate” with state governments where new mills are proposed for “timely availability of litigation-free lands.” The proof of effectiveness of the Centre-state coordination will be in allocation of big parcels of land in single lots for mills to be built using the blast furnace-basic oxygen furnace (BF-BOF) route.

The 2017 policy promises to brave out the challenges of mobilisation of natural resources, finance, infrastructure and skills to achieve the 300 million tonne capacity target over the next 13 years. But how will banks be enthusiastic about any further major exposure to the sector when steel remains among the biggest contributors to their non-performing assets?

Moreover, a weak market over the years has weakened the ability of public sector steelmakers to mobilise funds to support the capacity growth expected of them. Even now when global steel outlook has improved, Indian producers are finding it hard to transact business after prices are raised.

The policy has left it for further discussion as to what will be the respective share of the primary and secondary sectors in the targeted steel capacity. Policy-makers want to know for sure to what extent the HIsmelt technology, developed by Rio Tinto, and Posco’s Finex process will finally find application in India. The two technologies, which allow making of iron with iron ore fines and non-coking coal as feedstock, are ideal for India, which is becoming increasingly dependent on coking coal import to support operation of BF-BOF units, says RK Sharma, secretary general of Federation of Indian Mineral Industries.

Source : Business Standard

voda 20 april 2017 16:42

0

Tata Steel plans one time settlement with UK pension - Report

Economic Times reported that TATA Steel is planning to write a cheque of GBP 520 million to its UK pensioners as a one time settlement under a new and rare scheme called the Regulated Appointment Arrangement. As per report the company is finalising its terms with the British regulators to clear all its pension liabilities, a move that is expected to ring fence the business and derisk it and help in future consolidation. This comes after the slow progress of its negotiations with the UK government post Brexit.

RAA is overseen by the pension's regulators in the UK and also needs the approval of the Pension Protection Fund.

As Tata Steel UK is not insolvent, it can only detach itself from the British Steel Pension Scheme with the approval of the Pensions Regulator and the trustees of the BSPS. The process to carry this out is called a Regulated Apportionment Arrangement. This process is used to separate an employer from its pension scheme in circumstances where the employer would otherwise become insolvent. The Tatas have been arguing that they need to detatch their UK operations from the BSPS or else the Group will cease its support which will make the UK operations go bankrupt.

As per the rules, the PPF or the members of an amended British Steel Pension Scheme have the right to take a minority stake of 10-33% in Tata Steel UK, if it turns round sharply after the new scheme is implemented. This is called an "Anti Embarrasment Equity Stake" - a regulatory step to safeguard pensioners interests, said people in the know. The exact quantum of stake is yet to be finalised but it will be a minority stake dilution and the Tatas will continue with majority ownership.

To proceed with the new settlement, Tata Steel India last month reached out to its consortium of over 30 Indian and global lenders to waive the covenants attached to its loans and are believed to have received their consent.

The banks have security over the shares of both Tata Steel UK and Tata Steel Netherlands the two key entities that own the European operations as well as the assets of Tata Steel UK. As per the covenants, if Tata Steel raises and puts fresh equity into the business, then the lenders have a charge on that and their approval becomes mandatory.

Source : Economic Times

voda 20 april 2017 16:51

0

China steel and iron ore price falls – Mr Russell

Mr Clyde Russel wrote for Reuters that in the first two months of the year, China's steel and iron ore prices were surging because output was growing strongly, but now they are falling for exactly the same reason. In this case, increasing steel output at the start of 2017 was viewed as proof of the strength of the Chinese economy and optimism that infrastructure spending and construction were going to keep demand robust. But that market sentiment started to shift toward the end of March as investors finally started to focus on the strong buildup of both steel and iron ore inventories.

The increasingly bearish view received a huge boost with Monday's news that steel output climbed to a record 72 million tonnes in March, exceeding the prior record of 70.65 million from March 2015. China, which produces about half of the world's steel, produced 201.1 million tonnes in the first quarter of 2017, up 4.6% from the same period last year, according to data from the National Bureau of Statistics.

The strong steel production in the January to March period does help explain why imports of iron ore were also gaining, and does go some way to explain the sharp increase in prices.

The drop in iron ore has been mirrored in steel rebar contracts traded on the Shanghai Futures Exchange, which ended on Monday at 2,932 yuan (USD 426) a ton, down 13.2 percent from their closing peak this year of 3,377 yuan on March 15.

While there is little doubt that steel and iron ore prices ran too hard, too fast at the start of this year, the question remains as to whether the fundamental supply-demand outlook has changed so dramatically in the last few weeks as to change the entire market dynamic?

The answer is probably no, but what does appear to be happening is that investors are finally returning to a more realistic appraisal of the Chinese economy and its prospects for this year.

Growth was stronger than expected in the first quarter at 6.9 percent, beating the consensus for a 6.8 percent gain, but there are some concerns about the resilience of property and infrastructure construction.

This alone should lead to some caution on the steel sector, and while March's output of 72 million tonnes is likely to be the high water mark for now, there is little reason to believe that steel production is on the verge of a major pullback.

Source : Reuters

voda 20 april 2017 16:52

0

Mr Trump’s Buy American may have little impact on US steel

Reuters reported that US President Donald Trump's "Buy American, Hire American" executive order on Tuesday left questions about how the government would enforce the order and whether it would make a real difference in output and employment, according to steel executives and analysts.

"Buy American" provisions already exist in US law but policing them has been difficult because of waivers granted to foreign companies that undercut their US counterparts on pricing. Earlier on Tuesday, Trump ordered a review of government procurement rules favoring American companies to see if they are actually benefiting, especially the US steel industry.

Trump's executive order promises to properly police those provisions, but avoided detail about how that will happen.

Mr Bill Hickey president of Chicago-based Lapham-Hickey Steel, which has seven steel mills in the Midwest and Northeast said he has heard talk of "Buy American" for decades, but American or foreign contractors frequently find loopholes to use imported steel. He said that "Politicians all talk the same, but at the end of the day it just doesn't work, citing waivers to existing provisions.”

Charles Bradford of Bradford Research said focusing on "Buy American" for US steel does not take into account that some steel products including tin plate and semi-finished products are not made in the United States. So if enforced improperly, it could cause supply problems in a U.S. market in which up to 25 percent of steel was imported in the first quarter of this year.

Mr Bradford said that "The people who have pushed for this don't have a clue and they don't know math.” He said that cutting off the supply of goods not made in the United States would create fresh problems for US companies.

Mr Kenneth Simonson, chief economist of the Associated General Contractors of America said that in the construction industry, there also are concerns over too strict a definition of what constitutes US made steel products.

Mr Simonson cited concerns with steel that might have been melted down from scrap metal that could have come from outside the United States, for example, and tracing its origins before that point.

Source : Reuters

voda 20 april 2017 16:54

0

US DoC announces probe into imports of steel wire rod

Reuters reported that US Department of Commerce was launching investigations into whether imports of carbon and alloy steel wire rod from certain countries are being dumped and/or subsidized.

The dumping probe affects imports from Belarus, Italy, South Korea, Russia, South Africa, Spain, Turkey, Ukraine, the United Arab Emirates and Britain, and the subsidization probe covers those from Italy and Turkey, the department said in a statement.

Source : Reuters

voda 20 april 2017 16:55

0

Three beaches reopened at Indiana following US Steel Corp wastewater spill

AP reported that National Park Service has reopened three beaches at Indiana Dunes National Lakeshore after tests showed no significant traces of a potentially carcinogenic chemical from a US Steel Corp wastewater spill.

The park service says water and beach sand samples taken last week came back below laboratory reporting limits for hexavalent chromium, so it reopened the beaches Monday afternoon.

The Environmental Protection Agency said that US Steel resumed full operations Monday at its Midwest Plant in Portage, about 30 miles east of Chicago. The company began a gradual restart there Friday, three days after an expansion joint failed, allowing wastewater containing the chemical to flow into the wrong treatment plant at the Portage complex. That wastewater eventually flowed into Burns Waterway at a point about 100 yards from Lake Michigan.

Source : Associated Press

voda 20 april 2017 16:55

0

Iran iron ore policy to boost steel exports

Financial Tribune reported that after a year of back and forth between government officials and industry players, no changes were made in export duties for iron ore despite previous announcements. The government’s U-turn seems to be mostly due to the pressure exerted by European Steel Association’s dumping allegations against the Iranian steel industry.

The European Commission recently decided not to impose preliminary anti-dumping duties on steel imports from five countries, including Iran, EC’s spokesman told Metal Bulletin on April 10. The EU steel lobby group said back in February that Iranian steel imports pose the latest threat to European steelmakers after imports from Iran, especially hot-rolled coil shipments, grew by nearly eightfold between 2013 and 2016.

The Iranian government had planned to slap 5-15% stepwise duties over a three-year period on the export of unprocessed minerals, including iron ore, as of this fiscal year (started March 21). This would have made procurement of cheap feedstock for Iranian steelmakers easier. Eurofer, which represents an industry that has to import iron ore, said such a practice amounts to protectionism.

Industry experts had earlier warned that fiddling with iron ore export duties could have undesirable consequences.

Source : Financial Tribune

voda 20 april 2017 16:56

0

Posco post KRW 976 billion net profit in Q1
Published on Wed, 19 Apr 2017

Posco, South Korea’s largest steelmaker, posted KRW 976.9 billion (USD 856.6 million) in net profit for the first quarter of this year, up almost threefold on year, due to enhanced profitability and higher steel prices. It also recorded an operating profit of KRW 1.3 trillion and KRW 15.7 trillion in sales, up 106.8% and 20.9% respectively, on-year between January and March this year.

It said “Efforts made to enhance profitability have bearded fruit. Sales of world premium products, which are high-value products, made up 53.4 percent,” Posco said in a statement.”

Source : Korea Herald

voda 20 april 2017 16:56

0

EEPC seeks aid of ministry over high steel prices in India

The Hindu reported that EEPC India, the apex body of engineering exporters has approached the Commerce Ministry, saying that a sharp rise of more than 5% in the rupee against the US dollar, along with a big increase in steel prices, is acting as a double whammy for engineering exporters in a highly competitive global market.

EEPC India Executive Director and Secretary, B. Sarkar in a letter to the Commerce Secretary Rita Teaotia. Sent on April 12, the letter said that “Our members have brought to our notice two recent developments, affecting growth of engineering exports, the Indian currency had appreciated against the U.S. dollar from ?68 on January 02, 2017 to INR 64.4 on April 10 implying an appreciation of about 5.26% within a span of about three months.”

The letter said that “This sharp appreciation has come together with an increase in Indian steel prices from USD 582 per tonne in September 2016 (hot rolled coils) to USD 712 per tonne in March 2017, highlighting an increase of about 22.5% in six months.”

Normally, an appreciating rupee would have effected lower domestic prices especially of raw materials like steel. A statement said that “However, what we find is a contradictory trend, which is immensely affecting the competitiveness of Indian engineering exports...”

The council has sought urgent attention of the government, as these developments are making it difficult for exporters to face international competition amid protectionist pressures.

The EEPC India said that “We seek your support in flagging these concerns and urge that engineering exporters be provided steel at the export prices of domestic steel companies.”

Source : Hindu

voda 20 april 2017 16:58

0

Pattern of steel consumption in India shows tremendous scope for growth – Mr Sushim Manerjee

Mr Sushim Banerjee DG of INSDAG wrote in Financial Express that there is a near unanimity on the view that the market growth in steel at 3% in FY17 is good but the envisaged growth potential of the sector is much more. The growth achieved is good in the backdrop of a meagre 0.4% growth in industrial production in the first 11 months of last year with manufacturing sector dropping by 0.3%.

It is seen from the official data that capital goods that comprise of heavy machineries and equipment have gone down by a whopping 14% during the period.

A major sub-sector, ship-building and repairs have curtailed its activities by nearly 50% in February 2017 itself. Also, the electrical machinery and apparatus segment has experienced a high negative growth of around 36% in the total period in spite of growing by more than 17% in February. Consumer durable sector that includes passenger car segment had a sober growth of less than 5% with 3 wheeler segment along with passenger and goods carrier nosediving by 24.5% during the month and furniture manufacturing going down by 4.2% during the whole period.

The subdued growth of 4.6% in electricity generation in April-February 2017 period in the country is indicative of such a massive fall in output of electrical machineries. The total consumption of electrical steel sheets has gone up marginally compared to last year, mostly contributed by rise in indigenous availability (electrical sheet production rising by 90% in February 2017) and more than 9% drop in imports of CRNO/CRGO.

It is worth mentioning that growing considerations of carbon footprints and the commitment to reduce environmental pollution by the government as part of its pledge to international agreements, would need a planned diversion from the coal-based power to hydro based and other non-conventional (solar and others) sources. This shift in electricity generation technology away from thermal power stations to other modules has implications for the demand for CRGO and special grades of CRNO for making electrical transformers and other equipment.

A product development strategy by the indigenous steel manufacturers to develop steel grade (EN-10025 S 355 JR/JO/J2, 460 NL/ML) for making wind turbines is urgently called for to stem the flow of imports of required steel grade.
The overall limited growth in industrial production has expectedly affected the consumption of flat products more than the long products which are mostly influenced by growth in infrastructure and construction. As the import component in flat steel (including the pipes category) in the current year by India is around 86% of the total imports, the above trend is likely to act as a dampener to flat imports in the coming month.

During FY17, the total finished steel imports by India consisted of around 9% of the steel consumption (import penetration). This is appreciably lower compared to the US and Korea, but significantly higher than China, Japan and Russia.

Korea and China provide 54.5% of total import flows, followed by Japan (14.4%), Indonesia (4.3%) and Russia (3.7%). The single category where imports exceeded the last year’s flow relates to tin plate. It may be mentioned that the imports of seconds/defective/ waste waste component comprises of 58% of total tin plate imports in FY17 and is around 16% more than imports of prime grade imports. There is little justification of specific requirements of waste products in manufacturing of a consumable item other than the pricing element.

The average import price of USD 548/t (CFR) at which waste waste grade tin plate has been imported is lower by around $100-105/t (CFR) of the prime grade imports of tin plate. It is worth considering (by ISA or any other organisation) if the banning of a waste product particularly eliminating it from the list of mercantile trade is a fit case to be taken up with WTO so as to prevent the possibility of misutilisation of the imported product in the critical user segment.
If pricing issue is predominant in determining the users’ preference, irrespective of the criticality of the application, the government must consider imposing a differential duty pattern to check the menace.

It is also seen that a quantity of 50,000 tonnes of seconds/defective grade cold rolled sheets and coils has been imported this year at a cfr price of USD 230/t against the prime grade imported price of USD 651/t (cfr). The domestic steel industry needs to concern itself with unabated flow of cheap and defective imports.

Source : Financial Express

Vertraagd	14 feb 2025 12:49
Koers	27,210
Verschil	-0,490 (-1,77%)
Hoog	27,410
Laag	26,030
Volume	1.339.036
Volume gemiddeld	2.580.319
Volume gisteren	4.408.986

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
05 feb	Beursblik: beter vierde kwartaal bij ...
03 feb	Deze 5 aandelen kunnen deze week voor...
03 feb	Video: optimisme beursexperts volledi...	1

Arcelor Mittal « Terug naar discussie overzicht

Nieuws en info hier plaatsen (deel 4)

Meedoen aan de discussie?

Direct naar Forum

Detail

ArcelorMittal nieuws