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Expect a more stable Q4FY19 than softer Q3 - Mr Ansari of JSPL

Mr Naushad Akhter Ansari, Joint MD of Jindal Steel and Power Ltd spoke to CNBC-TV18 about whether there is more downside in steel pricing or if it has bottomed out. Mr Ansari said that “Last quarter we did see some softening of the prices and also the demand was an issue in the last quarter. We also saw at that point of time, the iron ore prices have also gone up substantially but subsequently we have seen several changes. For example, the Indian iron ore prices have started softening, also because the substantial iron ore have been imported in India and that is also helping in a way that the part of the demand is being met by imported material. Therefore, there is certainly a pressure on the prices of iron ore and it is a good news for steel plants especially those who buy a lot of material.”

Mr Ansari said that "Also, we see that the prices which had softened and which had the tendency to soften up in Q3 – we can see a bit of stability in the market. We now see that the demand is getting into the form of proper enquiries and enquiries getting converted into orders. So we definitely see the positive steps there. I think the issues which we have faced in Q3 now would be behind us. We are likely to move up in this particular quarter. All in all, I see a positive Q4 of this financial year.”

Talking about the company's product portfolio, Mr Ansari said that "Within India we have the capacity of about 8.5 million tonne. We will be producing around 6-6.5 million tonne in this year because the Angul plant is still ramping up. Out of that, roughly about 2 million tonne is the flat product and rest is all long. Obviously, long is very important to us especially when we talk in terms of long, we have the structure, the wire rods, they are all doing very well. There is absolutely no issue there, in fact the rail demand is quite healthy."

Mr Ansari said that “When I say more stability is coming, I see more people placing order, more people buying the material and once that happens, prices are likely to go up.”

Source : CNBC-TV18
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Mazda develops world first cold stamped parts using 1,310 MPA class high strength steel

Mazda Motor Corporation, working separately with Nippon Steel & Sumitomo Metal Corporation and JFE Steel Corporation, has developed the world’s first cold-stamped vehicle body parts made from 1,310 MPa-class high-strength steel.1 The parts are used in Mazda’s new-generation Skyactiv-Vehicle Architecture, which will underpin upcoming models starting from the all-new Mazda3. High-strength steel enables automakers to make parts from thinner sheet metal while retaining the necessary yield strength. This results in a lighter vehicle body, which contributes to improved handling stability and fuel economy. A strong body is also essential to ensure crash safety performance, and the application of higher-strength steel has been widely anticipated.

Until now, cold-stamping of vehicle body structural members has only been possible with 1,180 MPa or lower-classed steel, due to the material’s formability and the difficulty of ensuring dimensional accuracy after processing. Working in collaboration with the above-mentioned companies, however, Mazda has found an appropriate set of processing conditions that make the process possible with 1,310 MPa-class high-strength steel.

The all-new Mazda3 uses 1,310 MPa-class high-strength steel for the front pillar inner, the roof rail inner, the hinge pillar reinforcement, the roof rail reinforcement, the No. 2 crossmember and the side sill inner reinforcement, saving about 3 kilograms over the same parts in the previous model.

Source : Strategic Research Institute
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California Steel awards two upgrade projects to Primetals Technologies

To expand its product mix and improve utilization, California Steel Industries (CSI), has contracted with Primetals Technologies for two electrical and automation projects for its 86" hot strip mill Hot Strip Mill and #2 Continuous Galvanizing Line in Fontana, California, USA. The Continuous Galvanizing Line upgrade is scheduled for a mid-2020 completion, and the 86" Hot Strip Mill project is expected to be complete by mid-2022.

Following an earlier Level 1 and Level 2 upgrade, the scope of the 86" Hot Strip Mill project includes a detailed migration plan for new motors, drives and power distribution for six finishing mill stands. Primetals Technologies is supplying medium voltage motors, medium voltage drives, transformers and switchgear, as well as engineering and commissioning. When completed, the upgraded mill will enable CSI to expand its product mix, minimize delays and improve mill utilization.

The electrical and automation upgrade of CSI's #2 Continuous Galvanizing Line will be implemented in multiple phases. It will improve mill utilization by replacing equipment nearing obsolescence, including AC and DC drives, Level 1 automation, Level 2 automation and HMI. The project scope also includes engineering and commissioning.

California Steel Industries, Inc began operations in 1984 and is the leading producer of flat rolled steel the Western United States, producing the widest range of flat rolled steel products in the region. The plant in Fontana, California, has the capacity to produce more than two million tons of hot rolled, pickled and oiled, galvanized, and cold rolled sheet, and electric resistance welded pipe steel.

Source : Strategic Research Institute
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Tata Steel may retain up to 30% stake in South East Asian units

Money Control reported that in a possible tweak to its strategy, Tata Steel may retain up to 30 percent of its shareholding in its South East Asian units, which had been put on the block. Sources told Moneycontrol that the slight tweak means that Tata Steel is now looking for a partner and not a downright buyer for Singapore-based NatSteel Holdings and Tata Steel (Thailand). In response to a query on the development, Tata Steel said that “In pursuit of its long-term strategy to create sustainable value for its shareholders, Tata Steel periodically undertakes strategic assessment and review of its portfolio including overseas business. Tata Steel will continue to consider all strategic decisions including portfolio restructuring options in a responsible manner taking into account the interests of stakeholders including employees. However, as there is no firm proposal for consideration currently, the company has no further comment to make in this matter.”

Earlier this week, media reports said the steel major was in talks with China's Hesteel Group.

Source : Money Control
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Canada government to support Algoma Steel

The Government of Canada is delivering on its commitment to support our country's dedicated steel and aluminum workers, their families and their communities. Honourable Navdeep Bains, Minister of Innovation, Science and Economic Development, announced an investment of up to CAD 90 million in Algoma Steel Inc, Canada's second largest integrated steel producer.

This investment will create and maintain 3,050 jobs in Sault Ste. Marie, Ontario. Algoma Steel is undertaking $600 million in capital investments over an eight-year period that are vital to the local economy and national steel industry. These investments include projects to adopt new technologies, improve productivity and sustain competitiveness in the global market. Improvements will help Algoma Steel modernize its core production assets, including the steel rolling and steel plate mills, which will position the company to offer a wider range of steel grades and increase production capabilities.

The government's investment in Algoma Steel, a world-class steel producer, is ensuring the company will continue to provide thousands of Canadians with good middle-class jobs and remain an important contributor to our economy and manufacturing supply chains. By leveraging multiple funding programs, our government is strategically deploying resources to support the steel sector.

Based in Sault Ste. Marie, Ontario, Algoma Steel is a fully integrated steel producer that manufactures rolled steel products, including sheet and plate, and has a production capacity of 4 million tons.

Source : Strategic Research Institute
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Thailand does not extend safeguard duty on HR steel imports

Bangkok Post reported that the Thai government has ruled out extending safeguard measures on imported hot-rolled steel sheet with alloy, both in coils and not in coils, after a probe found no injury to the domestic steel industry. Deputy commerce minister Ms Chutima Bunyapraphasara, who chaired the meeting of the Trade Interests and Remedies Committee on Jan 7, said extending such measures may put the country at risk from trade retaliation. Ms Chutima said "The committee considers the extension of the safeguard measures unnecessary because the investigation showed the import volume and market share of such steel imports dropped, while the domestic sales volume and capacity utilisation increased in 2017 and 2018. The probe also found the losses of the affected companies reduced and employment increased.”

Thailand exercised the safeguard measures on imported steel for the first time from Feb 27, 2013 to Feb 26, 2016. The measures were subject to renewal from Feb 27, 2016, to Feb 26, 2019. Under the safeguard measures, imported steel is subject to a tariff of 39.1%.

Thailand has two major hot-rolled steel sheet makers - Sahaviriya Steel Industries Pic, the country’s biggest hot-rolled steel sheet producer, and G Steel Pic.

Source : Bangkok Post
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thyssenkrupp break up plans face economic, financial hurdles - Report

Reuters reported that Thyssenkrupp faces risks ranging from economic uncertainty to cartel fines in 2019, potentially complicating a planned spin off of the German company’s capital goods business which has so far left some investors unconvinced. While the break-up plan is backed by the Alfried Krupp von Bohlen and Halbach foundation and Cevian, Thyssenkrupp’s two biggest shareholders, other investors question whether it will solve the German conglomerate’s bigger problems. Some analysts say fears of a global economic downturn as well as potential fines over alleged cartel agreements in Germany could also hit Thyssenkrupp at a time of already stretched finances.

Thomas Hechtfischer, managing director of shareholder advisory group DSW, which represents 1 percent of the group’s voting rights at its annual general meeting said “Overall, I still don’t see how Thyssenkrupp will get anywhere. 2019 won’t be the only transition year for the group. I suspect there will be quite a few.”

One top-20 shareholder said Thyssenkrupp’s management still needed to prove that the break-up will result in a smaller, more agile set-up, adding “Simply announcing a breakup doesn’t change anything.”

Thyssenkrupp, whose AGM is scheduled for Feb. 1, plans to get most of the break-up work, including a legal separation as well as top management appointments, done this year before shareholders are to approve the split in a year’s time.

Source : Reuters
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MMK relies on PQA® for quality management across all processes

Magnitogorsk Iron & Steel Works (MMK), Russia, has placed an order with MET/Con, an SMS group company, for the implementation of the quality management system PQA® (Product Quality Analyzer). Together, MMK, SMS group and MET/Con intend to set a milestone with this project and show how the location’s performance and quality levels can be improved thanks to total process and production transparency. MMK produces around 10 million tons per year quality steel at its site in Magnitogorsk; this steel is used in the construction and automobile industries, for example, and for pipeline and mechanical engineering. As part of a company-wide Industrie 4.0 initiative, MMK will implement the new PQA® quality management system in order to further improve quality levels across all processes in Magnitogorsk, as well as stabilize production processes, improve on-time delivery performance, and thus improve its competitive position.

The PQA® system is a holistic IT solution that operates on know-how based expert rules. Among other things, the advanced software and database solution from QuinLogic GmbH in Aachen, also an SMS group company, is to be used. This approach has been successfully implemented in the past at selected flat steel and long product manufacturers with a wide range of downstream processing stages.

The PQA® system conducts an online analysis of process, production, and quality data from steel production, through casting and rolling, right down to surface finishing and refining. The PQA® expert rules, which can be freely configured and fed with specific know-how, take into account customer and order-specific information in the quality assessment process or when the material is approved for further processing.

The modular software structure comprises a LogicDesigner for flexible rule adaptation, a quality assessment module, and a web-based reporting system. The centerpiece of the quality management system is the DataCorrelator software module, which also covers current topics such as big data analyses and artificial intelligence (AI). Various intelligent mathematical evaluation methods, including pattern recognition options, identify and indicate correlations that can be directly used for process optimization.

Source : Strategic Research Institute
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World Economic Forum recognises Tata Steel steelmaking plant as a factory of the future

The World Economic Forum (WEF) announced Tata Steel Europe’s steelmaking plant at IJmuiden in the Netherlands has been inducted into its prestigious community of ‘Lighthouses’, a distinction awarded to manufacturing facilities which are seen as leaders in the technologies of the Fourth Industrial Revolution. Assessing more than 1,000 factories in 2018, the WEF recognises Tata Steel’s IJmuiden plant and six others as ‘Manufacturing Lighthouses’, state-of-the-art production facilities which successfully adopt and integrate the cutting-edge technologies of the future and drive financial and operational impact. This makes Tata Steel part of a network of just 16 key factories to create the world’s leading learning platform for production. To aid the learning and adoption of technologies by other companies, the Lighthouses companies are committed to open their doors and share their knowledge with other manufacturing businesses.

Tata Steel’s site at IJmuiden has been lauded for its pioneering use of advanced analytics to optimise the way raw materials are used, increase the yield at every step of the steelmaking process and further improve logistics between the different processes and the quality of the product for customers. Additionally, the recently established Advanced Analytics Academy gives Tata Steel’s employees an impetus to find solutions for waste reduction, quality improvement and overall reliability of production processes.

Hans Fischer, CEO of Tata Steel in Europe, said "It’s an honour to be recognised by the WEF as one of a handful of manufacturing facilities worldwide which set a global benchmark for the factory of the future. This is no doubt an acknowledgement of both, the thriving culture of innovation at Tata Steel, and the advanced analytics team’s vision and commitment to realising more efficient, productive and responsible steelmaking.”

TV Narendran, Managing Director and CEO of Tata Steel Limited, added “Over the last couple of years, we have made concerted efforts, both in Europe and India, to leverage technology in a game-changing manner across our value chain to gain competitive advantage and to enhance our customer and stakeholder experience. We are delighted to be recognised for our efforts and look forward to collaborating with the World Economic Forum to share our learnings from this journey.”

Source : Strategic Research Institute
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Tosyali starts rebar exports from Algeria

S&P Global Platts reported that Turkey's Tosyali Holdings, which recently launched the world's largest (2.5 million tonne) DRI plant at its Algerian steel works, started rebar exports from Algeria as of December. Mete Sahin, export manager of Tosyali Algerie, told “We have sold 10,000 tonnes of rebar to the US last month.”

He added that they are targeting both Algerian, African and other export markets.

Tosyali started rebar production in Algeria in the second half of 2013 with a capacity of 1.2 million tonne. The company's rebar production capacity currently reaches 3.2 million tonne and it is also producing wire rod with a capacity of 600,000 tonne. Tosyali Algerie will reach 8 million tonne of production capacity in Algeria, when all of the four phases of the investment plan are completed.

Source : S&P Global
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Nigeria Spends USD 3 billion on steel importation annually - BUA Chairman

This Day Live quoted chairman and Group Chief Executive Officer of BUA Group, Mr Abdul samad Rabiu as saying that Nigeria spends about USD 3billion on importation of steel for local and industrial use. In a chat with journalists in Lagos, Mr Rabiu sought the support of the federal government in encouraging businesses to substitute importation, noting that if financing support is provided, the USD 3 billion import bill in the steel sector can be saved. The industrialist emphasised the need to build industries where raw materials can be easily accessed locally for production while also restating its company’s resolve to bridge the gap of about two million metric tonnes of imported raw sugar in the country.

Corroborating the claim of Rabiu recently, Founder of African Foundries Limited, Parduma Gupta, said the company produces about one million tonnes of steel rods, which accounts for about 60-70 per cent of the entire steel rods required in Nigeria, adding that it employs about 8,000 and 10,000 both directly and indirectly.

He also added that the scarcity of scrap in the country is becoming a threat to the steel sector.

He said that “We have been using iron scrap as our raw material but the increasing scarcity is becoming a threat to the industry, we approached the federal government and was advised to explore the usage of Iron ore. The challenge is that the percentage of iron content in the domestically available iron ore is much lesser than what is needed.”

He explained that “We have to make further heavy investments to introduce the latest technology for the increase of iron ore content suitable for steel production. This project is at an advance stage and hopefully we will be able to make Nigeria self- sufficient for its requirement of Iron rods.”

Source : This Day Live
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Hoa Sen Group exports steel sheets to US

VNS reported that Hoa Sen Group reported that it shipped 17,000 tonnes of steel sheets to the US worth USD 14 million on Thursday. A company spokesperson said the shipment proves the company’s capacity and global competitiveness since exports to the US and EU have been hit by the trade barriers they have imposed.

Hoa Sen has exported to over 75 nations and territories.

In 2017-18, it produced nearly 1.9 million tonnes of steel worth over VND 34.4 trillion (USD 1.5 billion), up 13% in volume and 32% in value over the previous year. Revenues from domestic sales were worth over VND 22 trillion (USD 964 million), up 34 per cent, and exports fetched USD 538 million, up 27%. Its profit after tax was VND 410 billion (USD 18 million).

Source : VNS
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Pet coke import ban is likely to affect aluminium, steel industry

Winslow Record reported that latest Union Commerce Ministry’s notification prohibiting pet coke import is likely to hit the end manufacturers in India. While industry estimates the cost impact at about 50 dollars per tonne, the secondary manufacturers apprehend significant escalation in cost of production as they have to look for alternate fuel feed for their electric arc furnaces. However, large mills, using the blast furnace route for steel making, are insulated as they do not have much use of in their process.

Major makers Vedanta, Hindalco and Nalco import to make anodes for use in the smelters for electrolytic process to separate aluminium. An official of a leading aluminium firm said “In the absence of pet coke to make anodes in-house, the companies will be forced to import anodes which will scale up the metal making cost by 40 to 50 dollars per tonne.”

On the other hand, a steel industry source said, the pet coke used in the steel melting shop are of high quality containing low impurities like sulphur. He said “Such high quality pet coke import is not banned. Hence, there won’t be much impact on the large steel mills producing high grade steel.”

DGFT notification follows a ruling of the Supreme Court last month that agreed to put into place recommendations from the court-appointed Environment Pollution Prevention & Control Authority (EPCA) to limit imports only to those industries using coke as a feedstock or in the manufacturing process, not as a fuel. Though the notification issued by Director General of Foreign Trade (DGFT) under the has prohibited for fuel purpose, it has exempted the ban for certain category of industries, including cement which is the largest importer of pet coke in the country.

Source : Winslow Record
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Arcelor geeft Frans personeel Macron-bonus

Gepubliceerd op 11 jan 2019 om 15:53 | Views: 325

ArcelorMittal 15:52
19,07 -0,33 (-1,71%)

LUXEMBURG (AFN/BLOOMBERG) - Staalconcern ArcelorMittal geeft zijn Franse werknemers een eenmalige bonus van 500 euro. Daarmee geeft het aan de beurs in Amsterdam genoteerde bedrijf gehoor aan een oproep van de Franse president Emmanuel Macron. Die wilde dat bedrijven bonussen zouden geven om zo de angel uit de protesten van de 'gele hesjes' te halen.

Die beweging protesteerde vooral tegen de hoge kosten om in het levensonderhoud te voorzien. Na weken van soms gewelddadige protesten kondigde Macron een pakket maatregelen aan. Het niet belasten van eindejaarsbonussen hoorde daarbij.

Een flink aantal bedrijven ging ArcelorMittal al voor.
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Nippon Steel & Sumitomo Metal appoints Mr Eiji Hashimoto as president

Nippon Steel & Sumitomo Metal Corp announced appointment of Mr Kosei SHINDO, currently Representative Director and President, as Representative Director and Chairman and Mr Eiji HASHIMOTO, currently Representative Director and Executive Vice President, as Representative Director and President effective as of April 1st 2019.

Mr Eiji Hashimoto, a 63 year old executive with ample experience in overseas operations, expressed his ambition to make his company the world’s top steel-maker. He said that “There is a fair chance that we can become the world’s No 1 comprehensive steel maker with our vast range of products, high level of skills and grasp of the market through our global network.”

Source : Strategic Research Institute
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India knocks at WTO against EU safeguards on steel imports

Indian government, under WTO's rules on safeguards, has sought consultations with the European Union against a move to impose safeguard duties on certain steel products. WTO said that "India has substantial interest as exporter of the products concerned. Hence, India requests consultations with the WTO under the Agreement on Safeguards with a view to review information and exchange views on the measures.”

Seeking consultations with the safeguard committee is a way to inform the other country that they are not fulfilling their commitments under the global trade rules.

Against the US move to impose high customs duties on certain steel and aluminium products, the EU in July last year proposed imposition of definitive safeguard duties to protect their industry against a surge of imports.

Source : Strategic Research Institute
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No plans for investment in overseas steel sector - Chairman

Korea herald reported that the head of the nation’s largest steelmaker Posco said he has no plans to make additional investment overseas in the steel sector this year but will focus on securing natural resources needed for its lithium-ion battery business touted as the company’s new growth engine. Posco Chairman Choi Jeong-woo i said that “With regard to steel, I don’t have any plans for making additional investment or pursuing mergers and acquisitions overseas. As for the new business sector, we will continue to look for lithium mines and will make investment if needed.”

Mr Choi was speaking to reporters after Bloomberg reported that the Indian government has approached South Korean steelmakers Posco and Hyundai Steel, a subsidiary of Hyundai Motor Group, to partner with its state-owned mills.

Both Posco and Hyundai Steel said they had received the letter of proposal from the Indian government. Posco said it will review the offer in consideration of the global economy and steel output.

Source : Korea herald
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Tata Steel not to revise bid for Bhushan Power and Steel - Report

ET reported that JSW Steel, which came from behind to surge ahead of the Tatas in the race for Bhushan Power and Steel Ltd with an offer of INR 19,700 crore, is unlikely to face competition in its bid to acquire the stressed asset with the Tatas unwilling to raise their original offer. A spokesperson for Tata Steel said “We will stay with our original bid. It is our stated position.”

Tatas have, however, legally contested the lenders’ decision to allow JSW Steel to alter parameters of its bid. In the process, JSW Steel got to improve its bid twice after the Tatas were declared the highest bidder.

On December 20, National Company Law Appellate Tribunal (NCLAT) reserved its order on BPSL and directed both JSW Steel and Tata Steel to file written submissions. Tata Steel had put in an offer of INR 17,000 crore for BPSL, which made them the highest bidder in the initial round when JSW had bid INR 11,000 crore. Subsequently, JSW Steel revised its bid to INR 19,700 crore

Source : ET
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Slab caster relocation projects on track at Shandong Rizhao

On the 9th January 2019 Danieli and Shandong Rizhao successfully started up the relocated CC4 slab caster in the Rizhao plant, only 16 months after the contract coming into force. The relocation project, including CC4 and CC5 (originally supplied by Danieli in 2007) involved moving the two slab casters from the centrally located Jinan site to the coastal site at Rizhao and an upgrading of both machines in order to meet the higher quality targets demanded by today’s market.

CC4 has been equipped with a new electrical and automation system, including a complete suite of 3Q technological packages. Moreover, all of the existing strand guide segments have been replaced with Danieli OPTIMUM segments, equipped with Q-COOL and Q-CORE technological packages to dynamically control the air-mist secondary cooling and soft reduction processes respectively, to ensure a far superior slab surface and internal quality.

CC4 has a design capacity of 1.5 Mtpy and will produce slabs of 200 mm and 250 mm thickness and 1,600 to 2,300 mm wide. Steel grades to be produced will include structural and alloyed steels for shipbuilding, structural, weather resistant, line pipe, boiler and pressure vessel applications.

CC5 is expected to start-up within the next 2 months and both casters will be fully worked up with completion of fine tuning and performance testing by mid 2019.

Source : Strategic Research Institute
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South Korean government to help out steel firms amid protectionism woes

Yonhap reported that South Korea's industry ministry will carry out various measures to support local steelmakers as protectionism policies around the world are expected to weigh down companies in 2019. During a meeting with representatives from steel companies, Industry Minister Sung Yun mo expressed gratitude to local firms for successfully overcoming challenges last year, such as the trade dispute between Washington and Beijing, that hurt market sentiment. Mr Sung said the country's steel industry is anticipated to suffer from a worldwide drop in demand for steel products, coupled with slumps in the automobile and construction industries.

With looming restrictions on imports of South Korean steel in markets around the world, the Ministry of Trade, Industry and Energy said it will join hands with local firms to help them find new export destinations and increase sales of premium products. The government said it will carry out joint actions against the possibility of restrictions on South Korean steel products.

To support small players, the ministry said it will work to have conglomerates share their smart-factory technology know-how with smaller companies to achieve shared growth and improve overall productivity. The government will ask local firms to shift their focus to premium products, and expand their facility investment to beef up their competitiveness, it added.

Source : Yonhap
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