Eurobench.com

voda 30 mei 2017 16:43

0

SAIL Salem unit sale hits a block - Report

Business Standard reported that the earlier idea to privatise the Steel Authority of India Ltd’s stainless steel unit at Salem in Tamil Nadu might get delayed. Land and employee union issues, besides opposition from the state government, might put a spanner in the central government’s decision.

The process has begun to select transaction and legal advisors and an asset evaluator for the strategic sale. It is learnt the last date for expression of interest for the transaction advisor has been extended twice, as only a single entity had participated. The advisor here would advise on modalities and timing of strategic disinvestment of this unit and two others, too, where a sale decision was taken. And, prepare a detailed operational scheme to implement the process.

Of the land with the plant, about half is not freehold and is another obstacle, say sources.

Also last month, Chief Minister E Palaniswami wrote to Prime Minister Narendra Modi that the move would cause “considerable unrest” among people whose lands were acquired for the unit. He said locals have a “deep sense of pride and attachment” to the unit. Which provided employment to 2,000 people.

According to a private company executive who did not wish to be named, businesses are likely to stay away till these issues are resolved. Some media reports had suggested Jindal Stainless was keen on buying stake in the Salem unit, though there has been no official word.

An unnamed critic of the decision on Salem said it was one of the better plants of the state-owned company and required only better management to run efficiently. The critic said that “It is functioning at 35-40 per cent of its total capacity and is not overstaffed, unlike SAIL’s other units.”

Source : Business Standard

Bijlage:

voda 30 mei 2017 16:44

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Liberty Speciality Steels wants to re start EAF

Yorkshire Post reported that the new boss of a South Yorkshire steel firm has unveiled plans to re start its biggest furnace, use green energy to power the plants and create 300 jobs. The report quoted Mr Jon Bolton, chief executive of Liberty Speciality Steels as saying that he also wanted to reinstate a mothballed bar coiler at Thrybergh, reopen a bloom caster at Aldwarke and spend GBP 15 million a year on equipment and staff.

In his first interview since Liberty House Group bought the business from Tata for GBP 100 million three weeks ago, Mr Bolton said that as well as reinstating the mothballed ‘N’ electric arc furnace used to melt scrap steel he would bring the smaller ‘T’ furnace back up to capacity.

He also wanted to grow the bar business four-fold over the next two years and introduce a ‘buy-local’ policy, while some people on temporary contracts had already been made permanent - a “statement of intent” ahead of creating 300 jobs.

Speciality Steels employs 1,700 at five steelworks, some 890 at a purifying facility in Stocksbridge, 618 at Aldwarke and Thrybergh in Rotherham and 99 at a bar mill in Brinsworth. It also has units in Wednesbury, Bolton and two in China.

Mr Bolton said the company lost millions in its final two years as Tata.

But the market had improved and Liberty was smaller, more agile and he wanted staff to be “empowered” to have faith in their capabilities.

He added that “The response from employees has been brilliant. I spent the first few days visiting all areas, meeting the teams and being clear about our plans for the future.”

Source : Yorkshire Post

voda 30 mei 2017 16:44

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Buy American steel bill gets legislative nod in Texas

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Texas Tribune reported that both the House and Senate approved a "Buy American" iron and steel bill on Saturday that will expand a provision already in effect for the Texas Department of Transportation and the Texas Water Development Board. The measure now only requires a signature from Gov. Greg Abbott.

Senate Bill 1289 by state Sen. Brandon Creighton, R-Conroe, would require large state projects such as buildings, roads and bridges to purchase iron and steel from an American supplier if the cost doesn’t exceed 20% more than the price of cheaper, foreign imports. Under the bill, any country's iron and steel can be used if American suppliers aren't prepared to supply a project or there is a compelling state interest.

Creighton has previously said that “Our intentions are to make sure foreign governments like China and Turkey can’t create a foreign steel market that would gut the American market. We stand firm for Texas jobs and manufacturers and against communist China flooding the market to hurt those stakeholders.”

Both chamber's approval of the legislation comes after a conference committee voted to delay the "Buy American" provisions for water projects until May 2019 meaning that up until then, water infrastructure projects wouldn’t be required to use American-made iron and steel. A study would be conducted during the interim to assess how using American metal would affect the cost of these projects.

Among the bill's opponents is the Canadian steel industry. Three representatives of the Canadian government wrote earlier this month they were “deeply concerned” with how the bill would affect Texas-Canada trade relations. The letter notes that Canada is the top export destination for U.S. steel products, representing roughly $9.7 billion in trade last year.

Source : Texas Tribune

voda 30 mei 2017 16:46

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India turned net exporter of steel this year - ISA

DNA India reported that India turned net exporter of steel this year and the trend is expected to continue as the metal's quality has become globally competitive. According to Indian Steel Association, this is the beginning for India towards becoming a global player. The association said that the country is no doubt on the right path. It added that "It is already a net exporter. This will give strength to domestic production so that the entire production may not be intended for domestic consumption and some positive development needs to move further.”

Mr Sanak Mishra Secretary General and Executive Head of Indian Steel Association told that "From September 2014 till end of September 2016 huge imports came to India, and since about beginning of this year, it shows the trend of becoming a net exporter.”

Source : DNA India

voda 30 mei 2017 16:57

0

Chhattisgarh CMDC intends to sell iron ore produced from Aridongri mine

Daily Pioneer reported that Chhattisgarh Mineral Development Corporation intends to sell iron ore produced from the proposed Aridongri mine in Kanker district of Bastar to steel / sponge iron unitsat Bhilai, Raipur and Raigarh on priority basis. Officials informed that efforts are being made to increase the production so that sufficient quantity of iron ore is available for export after meeting the requirements of the expanding home market. Export of iron ore is necessary for earning the much needed foreign exchange.

The mining at Aridongri will be carried out by opencast mechanized method. The mining equipment required will be dozer, shovel/hydraulic excavator, dumpers, wagon drill. The project area is located near Kachhe village on Dalli-Rajhara-Bhanupratappur road.

It is also accessible by Dhamtari-Bhanupratappur road. The nearest railway station is Dalli-Rajhara situated about 30 km north from the area. Aridongri area is well connected with District Headquarter Kanker (Uttar Baster) by metalled road. The nearest airport is at Raipur.

Notably, CMDC is seeking environmental clearance for Aridongri iron ore project in 245 hectares of land falling under Bhaupratappur forest division of Kanker district in Bastar.

Significantly, in the month of May 2015, Chief Minister Raman Singh had stated that minerals extracted in Chhattisgarh should be used for units located in the State on a priority basis. This will boost revenue collections and also increase job opportunities while addressing the 9th meeting of Chhattisgarh Mineral Development Fund Advisory Committee.

The meeting was organised by State Mineral Resources Department in which the Chief Minister was informed about various projects underway to explore minerals in the State.

The Chief Minister had emphasized the decision to undertake mineral prospecting work by Chhattisgarh Mineral Development Corporation (CMDC) in the meeting.

Officials informed that in the 2015-16 fiscal, Bauxite exploration works were being undertaken in Pandariya Tahsil of Kabirdham and Murtunda of Surguja district.

Source : Daily Pioneer

voda 30 mei 2017 16:59

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Iranian semi finished steel imports down by 88%

Financial Tribune reported that imports of semi-finished steel dropped by 88% in the first month of the current Iranian year (started March 21) compared with last year’s corresponding period to stand at 29,000 tonnes.

According to Iranian Steel Producers Association, semis production, on the other hand, was up 15% to 1.73 million tonnes for the period, including 917,000 tonnes of slab and 817,000 tonnes of billet and bloom, up 17% and 13% respectively.

Iranian steelmakers exported 439,000 tonnes of semis, up 28% year on year. Billet and bloom shipments made up 261,000 tonnes of the figure followed by slabs with 178,000 tonnes, up 27% and 29% respectively.

Source : Financial Tribune

voda 30 mei 2017 17:00

0

Iran exported 884,800 tonnes of steel to Thailand

Financial Tribune reported that Iran exported 884,800 tonnes of steel to Thailand in the fiscal 2016-17, accounting for 16% of all Iranian steel shipments and indicating an over 97% growth year-over-year. Iran was the fourth fastest growing steel exporter to Thailand last year.

Thailand is currently the world’s fourth largest importer of steel and Iran is gradually becoming a major exporter to the Southeast Asian market. The kingdom imported a total of 13.2 million tonne of semi-finished steel and steel products last year, up 15% compared to the year before.

In 2016, the country’s steel imports amounted to 4% of the total global shipments.

Iran exported 5.53 million tonne of semis and steel products in the last Iranian year (March 2016-17), the Iranian Mines and Mining Industries Development and Renovation Organization reported. Over 16% of the total figure amounting to 884,800 tonne were shipped to Thailand. This indicates an over 97% growth in shipments year-on-year and makes Iran the fourth fastest growing exporter of the commodity to the kingdom, followed by Indonesia, Australia and China.

Thailand imports steel from 110 countries with the minimum volume being about 400,000 tonne from each. The large number of willing trade partners has enabled Thais to be rather autonomous in choosing one and the rise in shipments from Iran can be a positive sign of consumers favoring Iranian steel over others.

Source : Financial Tribune

voda 30 mei 2017 17:02

0

SteelAsia forges deals with Evraz for billet purchase

BWorld Online reported that STEELASIA Manufacturing Corp has forged supply and technology cooperation deals with two of Russia’s largest steel makers that will enable the firm to take part in the government’s ambitious infrastructure program. The agreements were formalized during President Mr Rodrigo R Duterte’s visit to Russia this week. The agreement covers a USD 250 million, long-term supply agreement with Evraz have for a guaranteed monthly supply of 50,000 tonnes of semi-finished steel for its rolling mills in Davao City and Meycauayan, Bulacan.

SteelAsia also sealed a cooperation arrangement with Kurganstalmost JSC for engineering, training and technological transfer services.

SteelAsia Chairman and CEO Mr Benjamin O Yao was quoted in a statement as saying that “We have found that Russian companies are very reliable business partners.” He said that the long-term billet supply contract assures the company of a stable supply of raw material, insulating the country from a rebar shortage, while the technology and skills transfer are in preparation for SteelAsia’s diversification into steel structures.

Mr Yap said that “Our expansion plans are all geared towards supporting the country’s focus on massive infrastructure build up.”

Since 1998, SteelAsia has procured about 3.24 million tonnes of billets worth USD 1.23 billion from Russia. In the first quarter of 2017, the company has purchased 240,000 tonnes of billets worth USD 93 million.

SteelAsia works with several Russian steel companies, including NLMK and Evraz, OEMK/Ural Steel/Metalloinvest, JSC Amurmetal, Amurstaal, KMK, and Mechel.

Source : BWorld Online

Bijlage:

voda 30 mei 2017 17:07

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Chinese city to quadruple metro network by 2020

All Africa reported that authorities in Chengdu, capital of Sichuan Province, plan to increase the distance from over 100 km to 500 km in three years

China boasts a well developed rail transport system. In 2015, the country had a normal railway network of 121,000 km, 20,000 km of high-speed or bullet train rail - the longest in the world - and 3,600 km of metro or subway lines. Because of the huge population of almost 1.4 billion people and land area of 9.5 million square kilometres, railway construction and management is devolved to several subsidiaries for efficiency by the China Railway Corporation.

China Railway No. 2 Engineering Group Company Limited, CREGC, is one of these subsidiaries. Founded in 1950, CREGC now owns assets worth USD 10 billion and an annual turnover of USD 9 billion. It is amongst the largest railway construction firms in the world today. Based in Chengdu, capital of the Southwestern Sichuan Province, CREGC is currently undertaking a 60-km, 70-metre deep metro line project with 20 stations in the city. The two-year project is due to be completed in 2018.

According to CREGC's Managing Director, Liao Zhiming, the new subway line in a city of 14 million inhabitants and a province of 91 million people, will add to the other two of over 100 km.

Zhiming disclosed, "By 2020, the city's total tube network will be 500 km."

Source : All Africa

voda 31 mei 2017 16:43

0

Indian steel makers to benefit from low iron ore prices - ICRA

Ratings agency ICRA in a report said that Indian domestic steel mills may benefit from lower iron ore and coking coal costs in the current year but sustained weakness in demand still remains a concern.

It said “Sustained demand weakness remains a concern for the domestic steel industry with a growth of mere 4.6 per cent and 2.6 per cent in FY2016 and FY2017 respectively due to sluggishness in key end-user industries. Weak demand conditions have led to a correction in domestic hot rolled coil prices by seven per cent in May 2017.”

It said “Already, seaborne iron ore prices have corrected by 36% between February and May of 2017, dragged down by a correction in Chinese steel prices, steadily rising iron ore inventory levels at Chinese ports, and addition of low cost fresh supplies from Australia and Brazil.”

It added “However, this weakening in seaborne prices will make iron ore exports by domestic miners less remunerative, which in turn is expected to result in a higher domestic availability and a consequent correction in domestic ore prices in the coming months.”

Seaborne prices of coking coal, the other key steelmaking ingredient for which India relies largely on Australian exports, have also seen a sharp decline from USD 314/MT (million tonnes) in mid-April 2017 to USD 170/MT in mid-may 2017 after the resumption of supplies from Queensland post the disruption caused by cyclone Debbie during April 2017.

Domestic steel production grew by 10.7 per cent in 2016-17 supported by the government’s trade protection measures and favourable export realisations, which led to a decline in India’s steel imports, and a doubling of steel exports.

Source : PTI

voda 31 mei 2017 16:51

0

Iranian rebar makers slam billet exports

Financial Tribune reported that exports of semi finished casting products are on the rise despite shortage in the domestic market. In fact, shipments destined abroad have increased so much that there are not enough semis to feed the operational rolling mills in Iran. Rebar producers have been most vocal, calling on the Ministry of Industries, Mining and Trade to prioritize domestic market demand over exports.

According to Mr Ahmad Khourosh MD of Kavir Steel Complex nearly all state or quasi-state Iranian mills are engaged in exporting semis. He said that “This has caused about 70% of rolling mills to reduce production and working hours. Some mills have even stopped production altogether.”

Mr Khourosh said that "Even semis that can be found in the market are mostly of low quality, as producers who use electric arc furnaces for production reserve their best commodities for exports.”

Mr Khourosh noted that ISPA members are scheduled to hold talks with ministry officials soon to navigate a path out of this conundrum.

EAF-made semis are of higher quality compared to products made using other methods of production in Iran.

Source : Financial Tribune

voda 31 mei 2017 16:54

0

Australian state asks Rio, BHP for upfront cash

Reuters reported that cash strapped Western Australian state government will ask Rio Tinto and BHP to pay an upfront multi-billion dollar fee in exchange for cancelling an ongoing levy on their iron ore production. The revenue push by the mineral-rich state, which has run up more than AUD 30 billion ($23 billion) in debt following the end of a mining boom, sets the stage for talks with the miners, who are seen as unlikely to agree unless they win significant benefits.

Under the proposal, the two mining houses would pay as much as AUD 4 billion ($3 billion) in exchange for cancelling a A$0.25 a tonne ongoing levy on iron ore from their mines, some of which could be running for another 50 years.

State treasurer Mr Ben Wyatt, whose centre left Labor party won a state election in March, said the proposal was still in its early stages. He said that "It's an option that could only be close to crystalising if you had a range of things in play, one, obviously the engagement and agreement of the miners."

Rio Tinto has previously rejected the payout proposal, according to a company spokesman. A BHP spokesman declined to comment.

The mining companies are due to meet with the government this week, but a source close to one company said the proposal could set an unwelcome precedent.

The source, who was not authorised to speak publicly on the topic said that "The last thing Rio and BHP want is to become the state's go-to ATM every time there's a financial crisis."

Source : Reuters

voda 31 mei 2017 16:57

0

Slipping iron ore prices worries NMDC

India Infoline News Service reported that government-owned public-sector enterprise NMDC continued to witness surge in volume growth with improving realizations boosting its quarterly financials.

The company for the March quarter reported volumes of 9.8 million tonnes, as compared to 8.8 million tonnes in the year ago quarter.

The per tonne realisation for the company also improved from INR 2403 crore to INR 2481 in the December quarter and INR 1,658 seen in the year ago quarter. The company witnessed 88% YoY and 15% sequential rise in sales to INR 2872 crore.

The decline in iron ore prices in international markets has kept the street cautious. Even after the four successive hikes from November to March, NMDC has been able to maintain prices for its output in the month of April & May. But due to the fall in prices in overseas markets, the company may have to rethink the prices of its product in the domestic market.

Source : India Infoline News Service

voda 31 mei 2017 17:06

0

AISI update on Raw Steel Production in US in Week 21

In the week ending on May 20, 2017, domestic raw steel production was 1,741,000 net tons while the capability utilization rate was 74.7 percent. Production was 1,732,000 net tons in the week ending May 20, 2016

Source : Strategic Research Institute

voda 31 mei 2017 17:06

0

Legal & General is in talk with TATA Steel for British Steel Pension Scheme - Report

City AM reported that TATA Steel is in talks with Legal & General about the buyout of the GBP 15 billion British Steel Pension Scheme. The Sunday Times reported that the FTSE 100 insurer has approached the trustees of the scheme about taking over some, or all, liabilities.

It was announced earlier this month that the British Steel Pension Scheme had been an obstacle to Tata Steel merging its European steel works with German company ThyssenKrupp.

The details of the restructuring are being finalised with the Pensions Regulator and the Pension Protection Fund.

It was also announced this month that Tata Steel was willing to pay GBP 550 million into the pension scheme and give the fund a 33 per cent stake in its UK business to avoid going under.

A new pension fund with less generous benefits would be brought in, and members given the choice of entering that or falling under the protection of the PPF.

Source : City AM

voda 31 mei 2017 17:08

0

South Africa steel Industry cheers steel fund

South Africa steel industry bodies expressed their support for the ZAR 1.5 billion steel competitiveness fund announced last week by minister of Economic Development Ebrahim Patel. The Steel and Engineering Industries Federation of Southern Africa said that the fund would allow for major strides in value creation in the sector to take place.

Seifsa chief economist Mr Tafadzwa Chibanguza said that the industry was underpinned by a complex set of dynamics that are unique to it and that the fund would assist the industry to be more competitive. He said that “We welcome this fund, because it should help to deal directly with the dynamics at play in the sector. In fact, we have always cautioned about the limitation of a blanket approach to manufacturing and the need for dedicated policy packages.”

The fund is aimed at helping qualifying entrepreneurs in the downstream steel sectors to improve their competitiveness. It will be predominantly funded by the Industrial Development Corporation.

The IDC will receive ZAR 95 million in the form of grant funding the department of economic development over the next three years, which it will use to fund the interest rate subsidy. The rest of the ZAR 1.5 billon will be from the IDC’s own funds.

According to the Department of Trade and Industry, the steel industry directly represents 1.5percent of the country’s gross domestic product and indirectly supports strategic sectors of the economy, the top five of which, it is estimated, support 15 percent of GDP and employ 8 million people.

Source : IOL CO

Bijlage:

voda 31 mei 2017 17:12

0

Global thermal coal reserves in USD 185 billion industry in shareholder value

Published on Wed, 31 May 2017

Clean Technica reported that the global thermal coal industry currently amounts to around USD 185 billion in shareholder value from 117 producers and owners, and Asia currently accounts for 71.1% of the global coal reserves, out of a total 165 billion tonnes of thermal coal still locked in mines around the world.

These are the primary findings from a new report published earlier this month by independent UK-based non-profit InfluenceMap. The report analyzes the ownership claims of the world’s known thermal coal reserves, and tracks the links between the coal reserves in coal mines, the operating coal companies, and the shareholders who own these companies.

In total, InfluenceMap found that roughly USD 185 in shareholder value is associated with 117 listed thermal coal producers and owners, including large public shareholder companies such as BHP Billiton, Glencore, and Berkshire Hathaway. A total of 165 billion tonnes of thermal coal is believed to be still residing in mines around the world which are controlled by 135 companies, 117 of which listed on stock exchanges.

InfluenceMap illustrates the global distribution of coal reserves below:

The report also illustrates the global distribution of the top coal shareholders who own the companies who own the thermal coal reserves. These are the 117 stock exchange-listed companies which currently hold 150 billion tonnes of the world’s coal reserves.

InfluenceMap also digs into the coal divestment of some of the world’s largest pension funds, which represent USD 1.4 trillion in assets under management but which have divested 50% or more of the physical thermal coal in their holdings since the end of 2011.

Specifically, the world’s second largest pension fund has already shed 70% of its physical coal investments.

Source : Clean Technica

voda 31 mei 2017 20:37

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Miners drop as iron ore prices sink to six-month lows

May 31, 2017 10:17 AM ET|By: Carl Surran, SA News Editor

Shares in global miners and steel producers are under pressure after iron ore prices plunged to their lowest levels in six months, as stockpiles at Chinese ports swell to their largest in 13 years.

Iron ore prices fell 6% on the Dalian Commodity Exchange as traders returned form the Dragon Boat Festival holiday; the price of physical iron ore for delivery to China traded at $57.02/metric ton today, down from a YTD peak of $95/ton in February.

Imported iron ore at China's ports reached 136.6M metric ton last week, the highest since the SteelHome consultancy began tracking the data in 2004.

In early trading: BHP -2%, RIO -2.3%, VALE -3.8%, CLF -7.2%, MT -2.7%, X -3.4%, AKS -3.6%, NUE -1.9%, STLD -3%.

Now read: U.S. Steel - Moving Forward »

En de sub-link:

U.S. Steel - Moving Forward

May 12, 2017 3:23 PM ET|23 comments| About: United States Steel Corporation (X)
William Sabin

With the announced retirement of Mario Longhi, president and CEO, things should start to improve.

U.S. Steel continues to be an opportunity for a short term trade.

The stock continues to be a buy at this level; the recent drop was overdone.

Recommendation: Continue to stay long U.S. Steel (NYSE: X)

Target Price: $27

Thesis

U.S. Steel continues to be an opportunity for a short-term trade. The sharp drop was overdue but understandable as Street analysts lost confidence in X's management. The announced stepping down of the CEO is welcomed. The stock continues to be a buy at this level; however, significant headwinds persist if Trump's infrastructure rebuilding plans do not materialize.

The Bad News

As I have mentioned in a previous article, the negative news from X, which generally accounted for the miss, was related to their flat rolled business, which ranged from an EBIT of $65MM in the 4Q2016 to a loss of $90MM at the 1Q17. X had this to say via their press release:

First quarter results for our Flat-Rolled segment declined significantly compared with the fourth quarter, as we expected, primarily due to higher raw material costs, increased planned outage costs, seasonally lower results from our mining operations, and restart costs associated with the Granite City hot strip mill and our Keetac iron ore mine.
While X stated (as referenced above) that they expected earnings to come in lower than estimated, there appears to be no reference that the Street knew of this earnings miss expectation. In my opinion, this is a total embarrassment for the company and for the analysts who have their clients in this stock.

Downgrade

Cowen and Company downgraded shares of X from outperform to market perform, citing a lack of visibility on earnings in light of the company's multiyear turnaround program. They were unable to gain confidence in the duration or shape of the revitalizations.

Lawsuit

A shareholder class action lawsuit has been filed against X. According to a press release, the complaint alleges that "U.S. Steel and certain of its senior executive officers made materially false and misleading statements to investors about the Company's outlook and expected financial performance during the Class Period."

Steel Industry Players

While major steel players' stocks have suffered, no one has suffered as much or as fast as X.

Source: Yahoo Charts

The Good News

X's president & CEO, Mario Longhi, is stepping down, and David Burritt, currently X's CFO, will take his place. The earnings miss might have contributed to the shakeup.

David Burritt became X's CFO in 2013. During his 32 years at Caterpillar, Burritt served as chief financial officer and vice president of global finance and strategic services from 2004 to 2010. Burritt appears to be a highly regarded financial executive with strong leadership capabilities who delivers results.

Key Risks

As previously mentioned, I continue to be concerned that the Street appeared not to know the extent of the earnings miss. The CFO (now the CEO) had to know the extent of the earnings miss and has been around long enough to know that the Street was going to pummel the stock upon a huge earnings miss.

While X is less at risk at current prices, if Trump's promises to rebuild the crumbling US infrastructure stall by action (or lack of action) by Congress, there could be significant headwinds against higher prices. Remember, Obama wanted Congress to move forward on infrastructure changes back in 2014 and that really did not happen to any significant level.

However, if Congress does get behind rebuilding U.S. roads, bridges, (the wall...), etc., coupled with Trump's "buy American" stance, X could be in a perfect position for growth.

Short-Term Trade

As the stock has collapsed almost 33% April 25, I continue to look for a short-term retracement in the stock to $27 and possibly higher. With the stock sitting just under $21, a bounce to $27 would return of 28.5% return. Depending on the strength at $26-27, I might take profits at that point.

If one does not want to take a long position in stock, one might consider buying call options a 3-4 months out from now with a strike price near the money. This is how I am currently positioned for an X retracement.

Longer Term

If X can rebuild investor confidence and if President Trump's infrastructure plans develop into solid actions, X should move back into the $40-50 range. However, with most things with the U.S. government, actions generally take a long time to hit the ground. This is not always a bad thing, especially if the plans are laid out in a manner to be the most efficient use of taxpayers' money. I can dream, right?

Additional Disclosure

Thank you for your time in reading the above article. I write on a wide range of companies on a regular basis. If you would like to stay informed with articles like these, please click the "Follow" button at the top of this report and select "Get email alerts." If you have additional insights on the topic or contrasting views, please kindly share them in the comments section.

This article is intended to provide educational information to readers and in no way constitutes investment advice. Investing in public securities is speculative and involves risk, including possible loss of principle. The reader of this article must determine whether or not any investments mentioned in this article are suitable for their portfolio, risk tolerance and accepts all responsibility for their decisions. Neither information, nor any opinion expressed in this article, constitutes a solicitation, an offer or a recommendation to buy, sell, or dispose of any investments, or to provide any investment advice or service. An opinion in this article can change at any time without notice.

Disclosure: I am/we are long X.

I wrote this article myself, and it expresses my own opinions. I am not receiving compensation for it (other than from Seeking Alpha). I have no business relationship with any company whose stock is mentioned in this article.

seekingalpha.com/article/4072744-u-s-...

voda 1 juni 2017 20:16

0

Details of ArcelorMittal SAIL meeting on auto JV

Reuters reported that ArcelorMittal and Steel Authority of India Ltd have agreed to a proposal to export a fifth of the auto grade steel they aim to make under a planned USD 913 million joint venture, according to a document obtained by Reuters.

The document, dated May 26, offered a "status report" on talks aimed at resolving a list of outstanding issues.

It was not immediately clear when a final deal would be reached. A preliminary agreement to set up the venture was signed in May 2015.

The proposal to export a fifth of the auto-grade steel made by the venture was listed as agreed by both parties in the document. A few proposals were listed as "under discussion".

Among the proposals that were also agreed were that ArcelorMittal waive a fee for the venture to use its brand and its research and technology, that any losses caused by delays in setting up the partnership would be borne by the venture and that the USD 913 million cost to establish the venture could rise.

The companies have also agreed to make an upfront investment of INR 3 billion rupees (USD 46.49 million) into SAIL's Rourkela steel plant in the eastern state of Odisha, which would supply the hot-rolled coils to the venture, according to the document.

The venture agreement with ArcelorMittal was extended until Wednesday, after the preliminary understanding signed in May 2015 lapsed on May 21, according to an email from SAIL sent to the steel ministry.

Source : Reuters

voda 1 juni 2017 20:17

0

Indian SAW pipe makers file plea for anti-dumping duty on Chinese imports

Business Standard reported that Jindal SAW, Essar Steel and Welspun Corp have petitioned the Directorate General of Anti-Dumping and Allied Duties to impose anti-dumping duty on imports of submerged arc welded pipes from China, after local firms lost a number of tenders to Chinese suppliers.

In a recent GAIL tender bidding for 160,000 tonnes of steel pipes worth INR 1,040 crore, North China Pipe Mill has bagged an order worth INR 880 crore leaving just 25 per cent of tender quantity for the Indian producers.

Pipe producers in India have already become nervous with GAIL set to open bids for another 3 lakh tonnes of steel pipes worth INR 2,000 crore in three months. Other public sector oil majors such as IOCL and ONGC are set to tender their pipe requirement worth INR 4,000 crore in the next six months.

Mr Vinod Mehta, general secretary, Indian Pipe Manufacturers Association, said “The domestic pipe industry is facing severe under utilization of capacity due to lack of orders from the domestic industry. India has a total of 6 million tonnes of pipe making capacity, but the current capacity utilization has fallen below 35% and the companies are finding it difficult to stay afloat.”

He said “With the trade measures against dumping of steel in place, Chinese companies are conveniently dumping pipes into the Indian market. The difference in price between Chinese and domestic supplies is about 20%.”

What has aggravated the problem for pipe manufacturers is that India was exporting close to 50% of its production to the US, Iran, Mexico, Saudi Arabia, Bolivia etc, but most of these countries have raised trade barriers to contain imports to encourage their domestic industry, thus impacting exports from India.

Source : Business Standard

Bijlage:

Vertraagd	5 feb 2025 17:35
Koers	24,360
Verschil	+0,140 (+0,58%)
Hoog	24,510
Laag	23,990
Volume	2.530.007
Volume gemiddeld	2.384.806
Volume gisteren	2.256.501

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