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Italy's steel exports to non EU countries up by 27pct in February

According to data released by the Italian steel producers association Federacciai, the country’s steel exports made to the non European countries totaled 832,000 tonnes in February, increasing by 26.8% YoY.

In the given period of time, Italy’s exports of steel flat products to the non EU countries soared by 35.2% to 242,000 tonnes and the exports of steel long products to these countries surged by 54.1% to 359,000 tonnes both YoY.

However, the country’s steel imports from the non European counties totaled 1.15 million tonnes in February, decreasing by 8.7% YoY.

Source - www.yieh.com
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Iron ore price fears raise earnings alert

The Australian reported that FEARS that iron ore prices are set to crumble in response to patchy Chinese economic data and the unfolding 20% annual surge in exports from the Pilbara have re emerged, forcing investors to place the earnings outlook for leading producers on high alert.

Prices for the key steelmaking raw material were sent sharply down on Monday and were lower again in Chinese futures trading.

Monday’s fall as measured by The Steel Index was USD 3.20 or 2.7% to USD 113.30 per tonne. The sharp fall comes just as the producers and investors had grown relaxed on iron ore’s near term price outlook after it had worked its way back from this year’s low of USD 104.70 on March 10.

The latest fall was put down to the rise in stockpiles at Chinese ports to near record levels, along with another easing of bans in India which have kept as much as 50 million tonnes annually off the seaborne market.

India’s Supreme Court lifted a ban on iron ore mining in Goa but restricted output to 20 million tonnes a year. It follows the lifting of bans in the biggest producing state, Karnataka, capped at 30 million tonnes a year.

The March 10 low for iron ore was reached after a shock one day fall of USD 9.50 per tonne or 8.3%. That lent weight to the growing number of analyst calls and a warning from BHP Billiton that a growing supply surplus would see prices weaken from the second half of this year.

Iron ore; Australia’s biggest export earner last year at USD 57 billion on government figures is already down substantially on last year’s (calendar) average of USD 135 per tonne.

According to TSI, the average for the year to date is now USD 119.80. On forecast Australian exports for 2013 to 2014, the lower prices represent a USD 9.5 billion revenue hit for the local industry, with government taxation receipts also hit.

But the flipside of Australia’s surging supply is that the federal government’s chief commodities forecaster, the Bureau of Resources and Energy Economics, is predicting a 35% value lift in iron ore exports to USD 76 billion as the mining boom transitions from a price led to production led phase.

Lower prices, and the potential for the more bleak forecasts for iron ore to be arrived at in a hurry, could nevertheless check the scale of capital returns that BHP this year and Rio Tinto next year have been planning to shower on shareholders. The speed on the debt reduction plans by the third biggest producer Fortescue, would also be checked.

Source – The Australian.com

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Bosnian iron ore miner ArcelorMittal Prijedor eyes flat output in 2014

It is reported that Bosnian iron ore miner ArcelorMittal Prijedor plans to keep concentrates output flat in 2014 after producing 2.1 million tonnes last year.

ArcelorMittal Prijedor plans to invest this year in a beneficiation plant with the aim of sustaining the quality of the concentrate it supplies to its sibling steel mills in Bosnia’s Zenica as well as in the Czech Republic and Poland.

Mr Mladen Jelaca DG of ArcelorMittal Prijedor said that “Economic conditions were very tough last year but we remain cautiously optimistic about 2014. There are clearly some challenges ahead but performance indicators seem to be moving in the right direction. The current production plan guarantees ArcelorMittal Prijedor will be running at full capacity for a third year in a row in 2014.”

Mr Jelaca said that “During the course of the last three years, we have carried out the necessary research and recently we determined all the necessary equipment that will be installed by the end of 2014.”

ArcelorMittal Prijedor will invest around EUR 10 million in the purchase of the equipment that will be installed in the enrichment plant in the course of 2014. The company’s exploitable iron ore is concentrated in the Buvac pit, which has approximately 40 million tonnes of exploitable reserves.

Source – Strategic Research Institute
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ArcelorMittal launches 2013 corporate responsibility report

ArcelorMittal announced its 2013 corporate responsibility report, Steel: stakeholder value at every stage.

The report focuses on how the company has been adapting and innovating at every stage in its value chain: in its mining and steelmaking operations, its application of design technology into products and its activities to recycle steel as well as by-products from the steelmaking process. It also details the company’s corporate responsibility highlights, including how ArcelorMittal made a direct economic contribution to society of USD 78.9 billion in 2013.

Mr Lakshmi Mittal chairman and CEO of ArcelorMittal said that “More and more, people want to know what value organisations create; not only economic value, but social, environmental and innovative value. This report aims to identify our areas of impact and how we are responding to them with actions that create value for our stakeholders.”

He said that “For example, last year we worked on two pioneering solar solutions for low carbon buildings, Phoster and SolarWall and an ultra lightweight car door for the automotive industry. At the same time, we completed a number of important investments in the Czech Republic, Bosnia and Herzegovina and Kazakhstan that will significantly reduce our emissions.”

Source – Strategic Research Institute
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UAE steel market bracing for spirited run to Expo 2020

UAE steel market might be in for turnaround in the coming years. Unending agony of this region after the 2008 collapse, subsequent political crisis in MENA nations and currency volatility in Turkey has taken heavy toll of the demand recently. Once considered as the biggest demand driver for long steel mills in Turkey and CIS had come to stagnancy as the reality sector crumbled under the weight of credit and infrastructure projects dried up owing to lack of liquidity.

However the clock seems to be reversing during the last 6 months with demand kindling from the infrastructure and construction sector. Even though it is not even a pale shadow of the 2007-2008 levels nonetheless encouraging trend has emerged.

Dubai will host World Expo 2020 which brings with it concomitant hectic preparation. Construction and infrastructure is slated to pick up majorly. It is expected that preparations for the event will boost consumption of steel products, mainly long steel, by 20-25% in the next few years.

The main projects are to start in 2015 and will allegedly cost the UAE government at least USD 8 billion. Grandiose plans to build new exposition centers, hotels, roads, bridges, one more airport and extend its metro line are few to mention in Dubai.

Significantly UAE has enhanced production capacity in the recent past . However most of these mills have been operating at low capacity utilization due to lack of demand. The country's rebar capacity is 4.28 million t, with only 3.1 million t in operation now. Some plants ran at 70-75% in 2013.
As the demand increases these mills will reach full capacity but even this won’t suffice.

Turkish mills can have feast supplemented by currency stability. The UAE imported 1.09 million t of Turkish rebar against 1.01 million t in 2012 which is expected to gallop 2015 onwards once the construction activity goes in full swing.

Source – Strategic Research Institute
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voestalpine breaks ground for 2 million tonnes HBI/DRI plant at Texas in US

After about a year of preparation, Mr Wolfgang Eder CEO of voestalpine, broke ground for the construction of a direct reduction plant in Texas in US.

This EUR 550 million investment is the largest foreign investment in the history of the Austrian Group. The voestalpine Texas LLC plant is being constructed at the La Quinta Trade Gateway Terminal in close proximity to the City of Corpus Christi.

Starting in 2016, the plant will produce 2 million tonnes of Hot Briquetted Iron and Direct Reduced Iron annually and will supply Austrian locations, such as Linz and Donawitz, with sponge iron as a premium raw material. With the new facility, voestalpine can significantly reduce production costs in Europe.

The highly automated plant will create 150 jobs.

Mr Eder said that “The property is superbly located right on Corpus Christi Bay, covers an area of about two square kilometres, and provides direct sea access for large ships. With our investment in Corpus Christi, we are significantly enhancing the efficiency of the use of raw materials by our company and at the same time demonstrating that this is possible while being responsible with the environment. The Austrian plants in Linz and Donawitz will obtain access to high quality, environmentally friendly primary materials (HBI and DRI) and the competitiveness of the European locations will thereby be ensured over the long term.”

The direct reduction plant will use iron ore pellets to produce high-quality DRI/HBI (sponge iron) comparable to the highest quality scrap or pig iron, which is an excellent primary material for the production of crude steel. In contrast to the coke and coal based pure blast furnace route, only natural gas is used as a reduction agent in direct reduction, which is more environmentally friendly. The price of natural gas in the US is about a half of what it is in Europe. The plant with its 150 employees will produce two million tons of DRI/HBI annually, of which about half will be shipped by sea to the steel plants in Linz and Donawitz. The other half will be used as a strategic reserve and sold to long term partners.

The construction of the plant is a heavy construction project in the truest sense. The EUR 550 million investment covers 20,000 tonnes of constructional steel and 13,000 tonnes of mechanical equipment. Construction of the plant will employ about 1,000 people for a period of one and a half years.

The use of natural gas instead of coke and coal in the reduction process makes a significant contribution to improvement of the CO2 balance and is an important step in achieving the very demanding internal energy and climate goals.

Source – Strategic Research Institute
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World Bank sanction USD 1.1 billion loan for rail corridor project

PTI reported that the World Bank has sanctioned a loan of USD 1,100 million for construction of 393 kilometer long double line between Mughalsarai to Bhaupur section of Eastern Dedicated Freight Corridor project.

A senior DFCC official said that the World Bank Board in a meeting held at Washington on April 22nd sanctioned the second phase loan of USD 1,100 million for construction of electrified double line between Mughalsarai-Bhaupur section of Eastern DFC after completion of the process of project appraisal and loan negotiations.

The loan agreement for the second phase is expected to be signed in June 2014.

World Bank has agreed in principle to partly finance the Eastern Corridor project from Mughalsarai to Ludhiana, which has been divided into 3 phases.

The total loan commitment is USD 2.725 billion, out of which the loan for the first phase was to the tune of USD 975 million. It was sanctioned in May, 2011 and the loan agreement was signed in October, 2011.

Dedicated Freight Corridor Corporation, a special purpose vehicle (SPV), is engaged in planning, construction, operation and maintenance of the dedicated freight corridors and in the first phase, the two corridors, namely, Eastern Corridor from Ludhiana to Dankuni (1839 kms) and the Western Corridor from Dadri to Jawaharlal Nehru Port (JNPT) (1499 kms) are being constructed.

The entire Western Corridor is being funded by Japan International Cooperation Agency (JICA), while the Eastern Corridor from Mughalsarai to Ludhiana is being funded by the World Bank.

Source - PTI
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Anticipated stimulus perks sentiments but uncertainty remains in Chinese steel market

China market is agog with anticipation of frenzied stimulus package with the economic indicators dipping. China's economy grew at 7.4% for January-March, down from 7.7% in the fourth quarter of 2013.

Despite the new regime warding off mounting pressure for booster package ultimately it is expected they will yield to growth compulsions.

It is learnt that China will allow private investment in projects covering the energy, information and infrastructure sectors. Significantly the move is seen as way of allowing market forces to influence the economy more than state intervention. Market was quick to response with rebar futures picking up.

Significantly China's steel industry reported a CNY 2.3 billion loss for Q1 2014, according to the China Iron and Steel Association (C1SA) as the industry continues to struggle with problems of over-capacity and softer demand.

However, crude steel output has remained above the 2mt per day mark, coming in at 2.152mt from April 2nd ten days 10-20th April up 3.8% on the previous ten days output.

Retail price levels remain unchanged and would take some time before actual action takes place in terms of easing of lending rates and infusion of capital by state in infrastructure projects. Some token measures expansion of railway network and banking debt restructuring has borne lukewarm result.

Raw material prices of iron and coke remained week.

Source – Strategic Research Institute
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POSCO cuts 2014 sales and investment forecasts on weak steel demand

Reuters reported that South Korean steelmaker POSCO cut forecast for sales and investment for this year after its Q1 profit missed estimates as China's slowing economy curbed demand for steel.

The world's fifth-biggest steelmaker, like its peers, is struggling with an oversupplied market and lacklustre demand.

China, the world's biggest steel buyer, saw its economy grow at the slowest pace in 18 months in the Q1 and the government has also ruled out any big stimulus plans, weighing on the demand outlook for steel from manufacturers.

POSCO cut its sales forecast for this year by around 2% to KRW 30.3 trillion from the previous KRW 31 trillion. Its investment plan was also revised down by up to 16% to KRW 3.1 trillion to KRW 3.3 trillion from KRW 3.7 trillion.

POSCO's operating profit fell 11% to KRW 518 billion in the January to March quarter, below a consensus forecast of KRW 531 billion from Thomson Reuters I/B/E/S.

This compared with KRW 581 billion in operating profit a year earlier and 488 billion won the preceding quarter. Its sales in the quarter also fell 4% to KRW 7.4 trillion from a year earlier.

Source – Reuters
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JFE eyes 5pct boost in crude steel output in 2014-15

Reuters reported that Japan's No 2 steelmaker JFE Holdings Inc aims to boost its crude steel output by about 5% in the 2014 to 2015 business year that started this month in a bid to meet solid construction demand at home.

JFE said that its group recurring profit, which is pretax and before one-off items, grew 3.3 fold to JPY 173.68 billion in the year ended on March 31 from a year earlier. Robust demand for construction and automobile steel and higher steel prices in Japan boosted profits.

JFE did not provide its earnings forecast for this year, but a consensus estimate stands at JPY 231.5 billion in a poll of 16 analysts in Thomson Reuters I/B/E/S, suggesting another year of profit increase.

Mr Shinichi Okada executive VP of JFE said that "We'll see some decline in demand, but we notice that automobile makers are already revising up their production plans for April-June quarter and April to September half. Also with continuing solid demand in the construction sector, we don't expect a sharp fall in demand. Domestic demand is fairly strong."

Source – Reuters
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Brazilian Usiminas posts higher Q1 profit but sees flat steel prices

Reuters reported that Usinas Siderurgicas de Minas Gerais SA, Brazil's largest producer of flat steel products posted a sharply higher Q1 profit on currency gains and cost cuts, although revenue was little changed.

According to a securities filing, profit at Usiminas, as the company is known, was BRR 222 million during the first three months of the year compared to BRR 47 million in the Q4. In the Q1 of 2013, Usiminas posted a loss of BRR 122.7 million.

Sales and production volumes for iron ore fell more than 20% in the comparison to the Q4 while production of raw steel remained unchanged. Still, total net revenue was stable from the previous quarter at BRR 3.1 billion as average prices for steel and iron ore rose.

Usiminas' shares jumped as much as 2.6% following its earnings release. They erased gains in the afternoon to trade more than 3% lower after company executives forecast steel prices and sales will remain little changed in the next few months.

Source – Reuters
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Chinese auto sales forecast to surge this year

The China Association of Automobile Manufacturers said that China's automobile sales is forecast to rise by 8% to 10% this year to a new high.

CAAM said as many as 24.18 million vehicles will be sold in the country this year.

Mr Shi Jianhua, deputy secretary-general of CAAM, said that demand will be boosted partly by China's urbanisation push and new consumption patterns, although a number of big cities facing congestion and pollution problems have rolled out measures to restrict auto purchase.

China has been the world's largest auto market and producer for 5 consecutive years, with sales and production exceeding 20 million units for the first time last year.

Source - www.themalaymailonline.com

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China steel futures extend gains on demand hopes

Reuters reported that Chinese steel futures rose for the second day on hopes that demand will improve as Beijing allows more private investment in various sectors.

Premier Li Keqiang said that China will allow private investment in 80% spanning the energy, information and infrastructure sectors. As part of plans to reduce state intervention and let market forces play a bigger role in the world's second-biggest economy.

A rebar futures broker in Shanghai said that "Mr Li's remarks have offered the market some confidence that steel demand will be supported as investors were earlier concerned that steel-consuming sectors are losing momentum quickly."

Demand also typically improves in the second quarter as construction and manufacturing activity picks up in warmer months. The most active rebar futures on the Shanghai Futures Exchange for October delivery, jumped 1.3% higher to close at CNY 3,283 per tonne.

But China will not use forceful stimulus measures to fight any short term dips in economic growth, reiterating the government's official stance on macro economic policies. The gains in steel prices have supported steelmaking raw material iron ore, which also extended gains into a second session.

An iron ore official with a northern Chinese steel mill said that spot steel market prices have steadied since mid-week so mills are increasing buying of iron ore, though prices are still a bit lower from last week.

Source – Reuters
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Deal to rescue Italy furnace site 4000 jobs at risk

AFP reported that a blast furnace at an Italian steel plant was shut down with 4,000 jobs at risk despite a call by Pope Francis for officials to make every effort in terms of creativity and generosity to rekindle hope.

The government said that a deal had been signed to save the site, but it came too late to prevent the shutdown at the Lucchini plant in Piombino on the Tuscan coastline, where production began in the early 20th century.

The governor of the Tuscany region Enrico Rossi described the closure as a dramatic moment but said a plan to transform the furnace had been reached after an emergency meeting with Prime Minister Mr Matteo Renzi.

Between them the region and the government have pledged EUR 250 million to modernise the site, making it ecologically friendly. The plant, which produced railway tracks, will also be equipped in future to scrap military ships.

Ms Rossi Italy defence ministry said that "Today is the end of a long and glorious industrial history, but we want to begin another. The authorities are determined to rebuild the furnace with advanced technologies to allow steel production at Piombino to resume within two to three years."

Source – Reuters
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Radar Iron snaps up major iron ore project in Western Australia

Radar Iron may trade firmer after purchasing a large iron ore tenement holding in Western Australia from Cliffs Magnetite Holdings and its joint venture partners, Sojitz Mineral Development and Nippon Steel.

The project area contains a major deposit within 150 kilometers of Perth and adjacent to rail, fitting Radar’s strategy of acquiring projects that can be brought into production in the near term for low capital cost.

Radar's new landholdings cover 501 square kilometers and include the Yerecoin Project which holds a JORC Inferred resource of 404 million tonnes of iron.

Yerecoin ores require only a coarse grind and simple processing produces a concentrate grade of over 68% iron with. Notably, Radar has raised AUD 860,000 at AUD 0.05 per share to Resource Development Group.

This is a substantial premium to Radar's last traded share price of AUD 0.03, and RDG is the owner of project delivery company Engenium which has carried out engineering studies on the project. These studies by RDG's subsidiary indicated potential economic viability and expected low capital cost; presumably the basis of their investment decision.

Consideration for the acquisition entails AUD 860,000 on signing the agreement, AUD 1.44 million by November 30th 2014; AUD 1.44 million by April 17th 2015 and a royalty of AUD 1 per dry tonne of concentrate.

Source - Proactive Investors
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Roy Hill would not end iron ore in WA - BHP Billiton

SMH cited Mr Jimmy Wilson iron ore president BHP Billiton as saying that greenfield mine developments are still possible in Western Australia this decade, even though the sector has crimped capital spending to shift focus on boosting production from existing assets.

Mr Wilson officially opened BHP Billiton's USD 3.2 billion Jimblebar mine in the Pilbara capping off an extraordinary expansion for the world's biggest miner and the broader resources sector. It is one of the last mines to open, with just Gina Rinehart's 55 million tonne per annum Roy Hill project left to complete, which is expected next year.

Mr Wilson said that miners across WA were going to chase down efficiency but this did not mean no new mines would be built in the coming decade. To say this will be the last greenfields mine outside of Gina's (Rinehart) facility going up I think would be a bit of stretch.

He said that raw steel production in China grew at 24% in the H1 of the last decade, slipping to 12% and forecast to grow this decade by 3.4%.

Jimblebar delivers 35 million tonnes per annum of ore but has capacity to generate 55 million tonnes. This additional 20 million tonnes is part of a broader push by BHP to boost production to between 260 million tonnes to 270 million tonnes from its current mine operations. BHP anticipates producing 217 million tonnes of ore by June 30.

In 2002 BHP's annual production was just 72.5 million tonnes. It has upgraded its iron ore production guidance twice this year after improving its operations generated better than expected production output.

Mr Wilson said that "We certainly have an aspiration to get there as soon as we practically can. That will require some capital investment within our organisation. He continues to expect the iron ore price to weaken in the face of lower cost production displacing high cost producers.”

Source – SMH.com
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New water source switched on for Pilbara iron ore operations

ABC reported that West Australian Premier Mr Colin Barnett has opened a new water source in the Pilbara, which he says will save the Government the cost of building a desalination plant.

The AUD 310 million Bungaroo Valley bore, near Pannawonica, will supply up to 10 gigalitres a year for Rio Tinto's coastal operations and for domestic use in Wickham and Dampier. The bore relieves pressure on the Millstream aquifer, which supplies the general water needs of the West Pilbara.

Mr Barnett said that he was relieved because the new bore meant the Government would no longer be required to build the desalination plant it had budgeted for in 2011. We're broke, so AUD 370 million on a desalination plant that wouldn't have produced a great deal of water was not an attractive solution."

He said that but the Government was, at the time prepared to go down that path. The towns had to have water. Rio Tinto has now essentially got its own water supply, so the Millstream resource is now free to be used by the Water Corporation to service the towns in the West Pilbara area. That's terribly important for the development Karratha, Dampier, Roebourne and so on."

Mr Warwick Smith acting CEO of iron ore operations of Rio Tinto said that “The miner would make use of nearly all of the water derived from Bungaroo. Expanding our business to the extent we are, we will require about eight gigalitres or thereabouts of water. So yes, we'll need it and we'll use it. When you get cyclonic rainfall in the Robe Valley region where Bungaroo is, it's amazing how much water is there. So, as a source of water it's very hard to beat and it's closer to the coast than other sources."

Source – ABC.net
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Kobe Steel crude steel output hits 6 year high

Reuters reported that Kobe Steel Limited crude steel output hit a 6 year peak in the business year just ended and that production this year would be similar due to robust domestic demand.

The rise is in line with overall Japanese crude steel output, which marked its highest level in six years in the 2013 to 2014 year that ended March 31. It was boosted by strong construction and automobile demand as Prime Minister Shinzo Abe pushed to revitalise the nation's economy with infrastructure investments and monetary easing.

Mr Naoto Umehara executive officer of Kobe Steel said that the company's crude steel output rose 8.6% YoY in 2013 to 2014 to 7.62 million tonnes the highest since 2007 to 2008. It plans to produce 7.65 million tonnes this year.

Mr Umehara said that "Demand for automobile steel is expected to remain as sound as last business year and demand from ship builders will likely pick up. Construction demand will also stay strong thanks to government stimulus and rebuilding work in the northeast region (hit by the earthquake and tsunami in 2011)."

Source - Reuters
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Chinese steel industry to cut 27 million tonne capacity in 2014 - MIIT

China's steel industry is confronted with serious overcapacity, sluggish demand, declining profits and stricter environment standards.

An official said that to tackle the problems, the Ministry of Industry and Information Technology has rolled out a batch of measures including curbing newly added capacity and pushing industrial consolidation.

Mr Feng Fei a director with the MIIT said that the country aims to cut outdated steel production capacity by a total of 27 million tonnes this year.

Source - Ecns.cn
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Metallurgprom expects steel output Of 29 MT in Ukraine

Mr Oleksandr Zrazhevskyi DG of Metallurgprom said that Metallurgprom production association expects 29 million tonnes of steel to be made in Ukraine in 2014.

Mr Zrazhevskyi said that "For this year we planned production of some 30 million tonnes of steel. But if take the first quarter performance and translate this onto the entire year, we'll have 28.6 million tonnes. If not for a black swan" who would want much metal, we'll have a result of 29 million tonnes."

He underlines, Ukraine remains the most export dependent country among the world's main steelmakers. In the Q1 84% of the delivered metal products were exported.

Source - Un.ua
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Vertraagd 7 mrt 2025 17:36
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