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Vale S11D exports 4.64 million tonne of iron ore in 5 months

BNAmercias reported that Brazilian mining giant Vale exported 4.64 million tonne of iron ore from its flagship USD 14.3 billion S11D Carajás mine in Pará state in January-May. The figure compares with 3.28 million tonne of iron ore shipped from the mine in January to April.

According to data from Brazil's trade department Secex, export revenue from shipments in the period was USD 264 million, up from USD 204 million in the first four months of the year.

Vale officially cut the ribbon on the project, in Canaã dos Carajás municipality, in December. The first commercial shipment of 26,500t was made on January 17.

Of the total invested in S11D, USD 6.4 billion was spent on the mine and plant and USD 7.9 billion on a 101km railroad, an expansion of the Carajás railroad and the Ponta da Madeira port terminal in São Luís, Maranhão state.

The project was originally due to be completed in December 2014.

Source : BNAmericas
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Goa ore extraction cap can be hiked to 37 million tonnes - Mines department

Times Of India reported that directorate of mines and geology has written to the ministry of environment, forest and climate change that it agrees with the Supreme Court-appointed expert appraisal committee's recommendation of increasing the iron ore extraction limit in the state to 37 million tonnes. A senior officer from DMG said they had written to the MoEFCC that they are sticking to the expert appraisal committee's recommendation. The officer said that the increase in iron ore capping will increase the state revenue. The officer said that "With more revenue, the state government can take up more development work.”

Recently, the Goa state pollution control board started monitoring air ambient quality and sought time from MoEFCC to submit comments over increasing the iron ore output cap in the state.

The Union ministry has also sought comments from the various state and central government departments over increasing the extraction capping in the state. At present, the Supreme Court has capped iron ore extraction at 20 million tonne.

Around 10 central and state government departments had been asked for their views on the report prepared by the six-member expert committee appointed by the Supreme Court, which had recommended an extraction limit of 37 million tonne per annum of iron ore in the state.

The panel, in its report, had suggested that the earlier assessed extraction rate of 20 million tonne per annum be enhanced to 30 million tonne per annum.

It had further stated that the limit could be further increased to 37 million tonne per annum "as the upper limit predicted by our sustainability model", subject to the state's review of the macro environment impact assessment of the enhanced extraction rate.

Recently, the state government had urged the Supreme Court to increase the iron ore extraction cap in the state. The matter has been adjourned till July.

Directorate of mines and geology had urged the mining companies to exhaust the 20 million tonne iron ore extraction capping by March 31.

Source : Times Of India
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High floor price deters buyers at OMC iron ore e auctions

Business Standard reported that latest round of iron ore e-auctions by Odisha Mining Corporation saw subdued buying interest. OMC offered 508,000 tonne of iron ore of which barely 200,000 tonne was booked, meaning an unsold inventory of 308,000 tonne. Both iron ore lumps and fines were on offer from OMC’s key operating mines of Gandhmardhan, Daitari and Koira.

The response to the auctions was weak as OMC continued its stand to hike base prices of lumps and fines. The floor price of lumpy ore was in the range of INR 2200 to INR 600 per tonne. Similarly, fines’ reserve price was fixed in the band of INR 900 to INR 1300 a tonne. The raise in floor prices by OMC was despite plunge in sponge iron prices of the order of INR 2500 to INR 3000 per tonne since the last auctions.

A senior official with a steel company said that “OMC’s floor price at iron ore e-auctions is based on the pricing mechanism adopted by the Indian Bureau of Mines (IBM) which is faulty. Pricing mechanism has to be made more realistic and transparent.”

OMC has refused to budge from its pricing stand, ignoring concerns flagged off by steel makers. R Vineel Krishna, managing director, OMC could not be immediately contacted for his comments.

Though OMC has drawn a roadmap for higher iron ore output targets and agreed to augment production at its mines, the results have not yet shown up at the ground level. OMC had set a target to achieve a production figure of 20 million tonne by 2017-18 but it looks challenging given OMC’s current actual annual production hovering around six million tonne.

Source : Business Standard
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Worker unions oppose privatization of SAIL plants

Express News Service reported that a joint meeting of central trade unions, federations and executives’ association held at Kolkata on Sunday and attended by several senior union leaders of Rourkela Steel Plant discussed various issues concerning SAIL plants, including RSP.

Rajya Sabha Member and CITU’s national general secretary Mr Tapan Sen said demonstrations would be held at all plants, mines and offices of SAIL across the country on July 4 to oppose privatization of SAIL and press for revival of special steel plants, including Alloys Steel Plant, Bhilai Steel Plant and IISCO, and imposition of anti-dumping duty on imported steel.

National vice-president of AITUC-affiliated Steel Workers’ Federation of India Mr Pravat Mishra said in the event of the three special steel plants getting privatized, the financial burden would be shifted to remaining steel plants, including RSP, to pave the way for their subsequent privatization.

Among others, CITU’s national vice-president Mr Bishnu Mohanty, RSP Executives’ Association president Mr Bimal Bisi and senior leaders of various central trade unions were present.

Source : Express News Service
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US steel shipments in April up by 0.7pct YoY - AISI

The American Iron and Steel Institute reported that for the month of April 2017, US steel mills shipped 7,428,080 net tons, a 3.4 percent decrease from the 7,692,434 net tons

Source : Strategic Research Institute
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BaoSteel cuts prices of CRC for July delivery

Reuters reported that China's biggest listed steelmaker, Baoshan Iron & Steel has cut the prices of cold rolled coil by CNY 80 (USD 11.77) per tonne for July delivery, apart from CQ grade and non-auto grade.

The company said that prices for hot-rolled coil for July will be left unchanged.

The firm's pricing moves usually set the tone for the industry.

Source : Reuters
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Judge approves massive Stelco restructuring

The Hamilton Spectator reported that it took less than 90 minutes for a judge in a Toronto courtroom to approve a massive restructuring plan for Stelco. Justice Herman Wilton-Siegel said that "These are difficult matters. No one gets what they like." But he noted the process will go forward with "a clear plan that holds considerable benefits" and that it has "taken a lot of cooperation and compromise."

The restructuring deal, that will see US venture capital company Bedrock Industries as the new owner, will see the creation of a land trust out of Stelco property.

The land trust, which is backstopped by the province from environmental liability, will have the effect of protecting the incoming owner from future remediation requirements for historical contamination. This is because the new Stelco will become a tenant rather than a land owner. The land trust, called LandCo, will try to remediate and redevelop unused portions of the 818 acre property with hopes of eventually selling or leasing it to raise money to cover pension and pension benefit obligations in the future.

The overall restructuring deal was unanimously endorsed by stakeholders in the court-supervised process that has been continuing for more than 2 1/2 years.

Mr Bill Aziz chief restructuring officer in the deal, said that numerous small details have to be worked out before the anticipated closing date of June 30. But he said he is confident that can be done.

Mr Bill Ferguson president of United Steelworkers Local 8782, said that was a "milestone. But a lot of paperwork still needs to be done. It will be very busy."

Source : The Hamilton Spectator
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Beursblik: Europese staalprijzen verder omlaag

Aanhoudende daling volgens Barclays slecht nieuws voor ArcelorMittal.

(ABM FN-Dow Jones) De Europese staalprijzen zullen waarschijnlijk verder blijven dalen, waardoor ArcelorMittal eveneens verder onder druk kan komen te staan. Dit concludeerden analisten van Barclays dinsdag in een rapport.

De staalprijzen zijn in Europa in de afgelopen twee maanden reeds met 10 tot 14 procent gedaald en de Britse bank denkt dat de daling voorlopig nog niet ten einde zal zijn. De analisten verwachten niet dat de vraag nog veel meer zal kunnen verbeteren ten opzichte van het sterke begin van dit jaar. Bovendien zullen daar in het derde kwartaal nog ongunstige seizoensgebonden effecten bovenop komen.

De druk op de winstgevendheid van Europese staalbedrijven door het dumpen van staal door vooral China zal in de visie van Barclays voorlopig ook aanhouden, ondanks reeds genomen maatregelen en lopende onderzoeken die tot nog meer invoerbeperkingen kunnen leiden. De analisten stelden dat de staalimport in Europa in de eerste drie maanden op jaarbasis met circa 5 procent is toegenomen.

ArcelorMittal heeft volgens de marktvorsers een aanzienlijke blootstelling aan de staalprijzen. De analisten vrezen daarom dat de koers van Arcelor onder druk zal komen te staan, indien de prijzen verder dalen.

Het advies van Barclays op ArcelorMittal blijft Onderwogen met een koersdoel van 16,50 euro.

Op een groen Damrak noteerde het aandeel ArcelorMittal dinsdag 0,2 procent hoger op 18,92 euro.

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
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Tata Steel to own Jamshedpur franchise of ISL football

Tata Steel announced that it has bagged Jamshedpur franchise of Indian Super League and will be part of ISL from the next season. It said that Tata Steel will announce the names of members of the Jamshedpur team along with the squad and coaching staff in due course. The team logo and jersey will also be unveiled soon.

According to the statement, ISL organisers and Football Sports Development Limited (FSDL) had invited bids for 10 cities in India, namely Ahmedabad, Bengaluru, Cuttack, Durgapur, Hyderabad, Jamshedpur, Kolkata, Ranchi, Siliguri and Thiruvananthapuram.

Jamshedpur was awarded to Tata/Tata Steel and it will participate in ISL

Noting that the Tata group has a long association with sports, especially football, with the efficacious Tata Football Academy (TFA) in Jamshedpur, the statement said the TFA has been grooming exceptional players who have brought glory to the nation for the last 30 years.

Source : PTI
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Chhattisgarh government grants rebate in power tariff for steel industry

PTI reported that the Chhattisgarh government has granted rebate in power tariff for the steel industry in the state. The steel industry will get a rebate of INR 1.40 per unit consumption of electricity.

An official said "The aim is to grant relief to keep the steel industry in a competitive environment.”

The energy department had issued a circular to this effect last month here from Mantralaya.

However, the new price structure will be effective retrospectively from April 1, 2017 to September 30, 2017.

Source : PTI
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US to release steel import findings in 232 review soon

Bloomberg reported that White House spokesman Mr Sean Spicer said that US President Donald Trump’s administration will as soon as this week release results of its investigation into the impact of steel imports on US national security.

Mr Spicer, referring to a seldom-used section of the 1962 Trade Expansion Act, told reporters that “Commerce Secretary Mr Wilbur Ross should have a further update on the 232 review later this week. When that comes out, there are certain recommendations that will be made to Congress to address anti-dumping provisions in the steel and aluminum and other markets.”

If the department finds evidence of a national-security threat from foreign steel shipments, the president is authorized to unilaterally “adjust imports,” which could include limiting or restricting them.

Trump said last week his administration would take measures “very soon” to stop foreign firms from selling steel in the US at artificially low prices.

When the section 232 probe was launched in April, Ross argued that China had failed to deliver on promises to reduce excess steel capacity, a situation that he said was hurting the US steel industry. China has noted that its shipments to the US are low end steel products that local producers aren’t willing to make and that it accounts for a small volume of total U.S. imports.

The Commerce Department is conducting a separate section 232 investigation into aluminum imports and it will holding a public hearing as part of that review on June 22.

Source : Bloomberg
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Liberty begins new era with drive to recruit more steelworkers

Metals and industrials group, Liberty House, this week (June 12th) begins the first phase of its drive to recruit new steelworkers, as it expands production at its recently-acquired Speciality Steels business in South Yorkshire.

The move comes only a month after Liberty’s £100m takeover of the business, securing the future for 1,700 existing employees and opening the way for the creation of a further 300 jobs.

Working closely with trade unions, Liberty Speciality Steels this week starts the process of hiring the first 40 new staff, most of whom will be assigned to the bar mill at Rotherham, which is doubling the number of shifts in order to boost output from 78,000 tonnes to 137,000 tonnes a year.

Some of the new recruits will work at one of Rotherham’s two electric arc furnaces, which will also be increasing production, while others will be based at the company’s mill and finishing lines in Stocksbridge.
Further recruitment, including the engagement of new apprentices, will take place in September and employment will continue to grow over the next two to three years, as production expands.

Liberty, which is part of the GFG Alliance, acquired the Speciality Steels operation from Tata at the beginning of May as part of its GREENSTEEL strategy to establish a major integrated, competitive and low-carbon steel and engineering enterprise across the UK. A key component of this plan is the recycling of scrap steel in arc furnaces powered by renewable energy.

In the past 18 months alone the business, along with its sister company SIMEC, has invested more than £500m in acquiring key industrial assets in Britain and it plans to invest hundreds of millions more to ensure the future of these facilities.

Speciality Steels produces a range of high-value steels, alloys and components used in the manufacture of vehicles, aircraft, industrial machinery and equipment for the oil and gas industry. More than two thirds of its products are exported worldwide.

Commenting on this initial recruitment drive, Jon Bolton, chief executive of Liberty Speciality Steels said: “We have big ambitions for the future so we’re eager to start the process of getting new people on board to help us move ahead with our plans.

“We’re looking for recruits from a broad range of backgrounds, especially adaptable people from the locality with a positive attitude and a hunger to learn about steel. We’ve got many highly-talented and experienced people on the team here who will train newcomers for key roles in an exciting industry entering a promising new era.”

For further details on the available positions please email your CV to liberty@adecco.com. or contact the local Adecco office on 0114 273 0075.
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US canned food industry asks Trump administration to exclude steel food cans from any tariffs

US’s canned food industry asked President Donald Trump and Commerce Secretary Wilbur Ross to exclude tinplate steel from tariffs or other restrictions based on the potential increases

For more, see link.

www.steelorbis.com/steel-news/latest-...
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Focus on enhancing domestic steel consumption - Steel Minister

Business Standard reported that India steel ministry is focusing on enhancing domestic consumption, production of high quality steel and making the sector globally competitive. Union minister Chaudhary Birender Singh told that a ministry's consultive committee, which comprises MPs and steel ministry officials as members that "Our focus is on enhancing domestic consumption, high quality steel production and making the sector globally competitive.”

The Members of Parliament appreciated the new National Steel Policy 2017 and the new policy for providing preference to domestically manufactured iron and steel products in government procurement.

The release added that "The most significant and far-reaching of all policy interventions is the rolling out of the NSP. The policy lays forward the road map for the industry in the coming years and will help in harnessing the sector's untapped potential.”

On May 3, the Cabinet had approved the National Steel Policy 2017 which reflects the aspirations of domestic steel industry for achieving 300 MT of steelmaking capacity by 2030-31.

Source : Business Standard
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AISI Releases May SIMA Imports Data; Import Market Share 27 percent in May

Washington, D.C. - Based on the Commerce Department's most recent Steel Import Monitoring and Analysis (SIMA) data, the American Iron and Steel Institute (AISI) reported today that steel import permit applications for the month of May totaled 3,598,000 net tons (NT)*. This was a 2.2% increase from the 3,519,000 permit tons recorded in April and a 7.4% increase from the April final imports total of 3,351,000 NT. Import permit tonnage for finished steel in May was 2,593,000, up 2.6% from the final imports total of 2,528,000 in April. For the first five months of 2017 (including May SIMA permits and April final data), total and finished steel imports were 15,904,000 NT and 12,069,000 NT, up 23.4% and 14.3%, respectively, from the same period in 2016. The estimated finished steel import market share in May was 27% and is 26% year-to-date (YTD).
Finished steel imports with large increases in May permits vs. the April final included standard rail (up 119%), reinforcing bars (up 67%), cut lengths plates (up 40%), plates in coils (up 30%), wire rods (up 28%), tin plate (up 25%), standard pipe (up 16%) and line pipe (up 12%). Products with significant year-to-date (YTD) increases vs. the same period in 2016 include oil country goods (up 233%), cold rolled sheets (up 37%), sheets and strip all other metallic coatings (up 36%), standard pipe (up 33%), mechanical tubing (up 29%), sheets and strip hot dipped galvanized (up 25%), hot rolled bars (up 21%), line pipe (up 21%), tin plate (up 19%) and wire rods (up 13%).
In May, the largest finished steel import permit applications for offshore countries were for South Korea (308,000 NT, down 4% from April final), Turkey (190,000 NT, up 2%), Germany (149,000 NT, up 33%), Japan (146,000 NT, up 2%) and Taiwan (93,000 NT, down 22%). Through the first five months of 2017, the largest offshore suppliers were South Korea (1,518,000 NT, down 5% from the same period in 2016), Turkey (1,178,000 NT, up 18%) and Japan (668,000 NT, down 6%).

www.publicnow.com/view/D31A9B0A2AFEB8...
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India not to cap iron ore prices - Mr Arun Kumar

PTI reported that India’s mines ministry said that it has no plans to cap the prices of iron ore as there is no shortage of the key steel making raw material. It also said the country is looking at expanding the iron ore production and that will take care of market dynamics.

Mines Secretary Mr Arun Kumar said at a press conference “There is no shortage of iron ore and at present there is no thinking in the mines ministry of capping of iron ore prices. Mines ministry does not have a plan of fixation for iron ore prices. They are the administrative ministry.

He said "The iron ore production has been going up. We are focusing on that. In the last two-three years we have gone up from 129 million tonnes to 156 million tonnes to 192 million tonnes in the last year." he said.

He questioned "Our iron ore is growing by 22% and the steel is growing by 8%. So where is the shortage?"

The government had earlier formed a panel under the chairmanship of additional secretary steel on iron pricing. The panel also has members from ministries like coal and mines.

Source : PTI
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Indian government to penalize miner for unused mining capacity

Money Control reported that Indian steel ministry is exploring several options, including the need for a sector regulator, penalizing miners for unused capacity, and mandatory pushing out of unsold stock to lower iron ore prices among others. The move is aimed at keeping a check on iron ore prices and making it affordable and competitive for domestic steelmakers.

An official, who did not wish to be identified, told Moneycontrol that “A committee comprising senior steel ministry officials is likely to come out with a policy that would bring down the price of iron ore (a key raw material in steel making process).”

The official said that “The committee will finalise the report by next month.”

The ministry has consulted key stakeholder's comprising officials from industry associations such as Federation of Indian Mineral Industries, Indian Steel Association, Sponge Iron Manufacturers Association, NMDC and MOIL.

Another official said that in the last four meetings since January, the committee has discussed need for a regulator in the sector among other issues.

The steel ministry is of the view a regulator for iron ore mining. The official said that “If you regulate iron ore prices, you will also have to regulate steel, which will ultimately be counterproductive for the sector.”

NITI Aayog had last year mooted creating independent regulators for steel and mining sectors, which would help the highly leveraged companies in the sector profitable.

The official further said that the ministry also may not want to interfere in state-owned NMDC’s pricing mechanism as it would adversely impact their commercial interests. Being the country’s largest iron ore miner, the government feels that if NMDC goes slow in raising prices, it will force private sector companies to follow suit.

The policy that the ministry will finalize, could be on increasing supply and availability of iron ore, which will eventually help lower ore prices for steel makers.

Source : Money Control
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This Week's Raw Steel Production

Sign up for the weekly Raw Steel Update newsletter.

In the week ending on June 10, 2017, domestic raw steel production was 1,718,000 net tons while the capability utilization rate was 73.7 percent. Production was 1,755,000 net tons in the week ending June 10, 2016 while the capability utilization then was 75.1 percent. The current week production represents a 2.1 percent decrease from the same period in the previous year. Production for the week ending June 10, 2017 is down 1.8 percent from the previous week ending June 3, 2017 when production was 1,749,000 net tons and the rate of capability utilization was 75.0 percent.

Adjusted year-to-date production through June 10, 2017 was 39,885,000 net tons, at a capability utilization rate of 74.4 percent. That is up 2.6 percent from the 38,872,000 net tons during the same period last year, when the capability utilization rate was 72.6 percent.

Broken down by districts, here's production for the week ending June 10, 2017 in thousands of net tons: North East: 218; Great Lakes: 630; Midwest: 170; Southern: 623 and Western: 77 for a total of 1718.

The Raw Steel production tonnage provided in this report is estimated.  The figures are compiled from weekly production tonnage provided from 50% of the domestic producers combined with monthly production data for the remainder.  Therefore, this report should be used primarily to assess production trends.  The AISI production report "AIS 7", published monthly and available by subscription, provides a more detailed summary of steel production based on data supplied by companies representing 75% of U.S. production capacity. 

Note: Capability for the Second Quarter 2017 is approximately 30.3 million tons compared to 30.4 million tons for the same period last year and 30.0 million tons for the First Quarter of 2017.

www.steel.org/about-aisi/statistics.aspx
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Iranian Flat steel import market buying weakens

Financial Tribune reported that buying activity in the Iranian flat steel import market dropped last week amid limited demand from pipe and profile industries. Reduced working hours due to the Muslim fasting month of Ramadan as well as ample stocks of flat steel have allowed Iranian importers to take a wait-and-see position and seek discounts. Moreover, availability of thin hot rolled coils from local producer Mobarakeh Steel Company is said to be good now.

Russia’s Magnitogorsk Iron and Steel Works, otherwise known as MMK, offered HRC to Iran at 390 (USD 439) per tonne Fob Astrakhan, down by EUR 10 (USD 11.26) per tonne week-on-week.

The estimated cost of freight from Astrakhan to the Iranian northern port of Anzali is USD 15-16 per tonne. Offers for HRC produced by Severstal were heard at EUR 395 (USD 445) per tonne FOB Astrakhan.

The price decrease, however, was not enough to attract customers, which placed bids at EUR 380 (USD 428) per tonne FOB Astrkhan.

This would be equivalent to USD 443-444 per tonne CFR Anzali.

Offers from Kazakhastan’s ArcelorMittal Temirtau were unchanged at USD 420 per tonne FOB Aktau.

The cost of freight from Aktau to the port of Anzali is around USD 9 per tonne.

No bookings were heard over the past week, despite the price being comparatively attractive to the Russian one.

Metal Bulletin’s weekly assessment for import of 2-mm HRC in Iran dropped to USD 429-444 per tonne CFR Iranian ports on Wednesday June 7, down from USD 429-461 per tonne CFR in the prior week.

Source : Financial Tribune
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Austria agree EUR 1 billion credit line for Iran steel project

Press Tv reported that Austria has agreed to allocate a credit line of EUR 1 billion for a major steel production project in southern Iran. The announcement was made by the visiting Austrian Finance Minister Mr Hans Jörg Schelling during a visit to Tehran. Mr Schelling was quoted by Iran’s IRNA news agency as telling his Iranian counterpart Mr Ali Tayyebniya that the credit line was meant to help the expansion of relations between the two countries.

IRNA further quoted him as saying that Austria’s banks were eager to promote relations with Iran’s banks.

For his part, Tayyebniya called on the Austria government to do more to help expand economic relations with Iran.

Austria’s steel production investment plan in Iran involves the establishment of a plant with a capacity of 2.4 million tonnes per year in Gol Gohar in Iran’s southern province of Kerman.

To the same effect, Austria’s Voestalpine has reportedly signed an agreement to team up with Iranian partners to establish a steel production plant in Gol Gohar.

Source : Press Tv
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