Eurobench.com

voda 5 april 2019 15:29

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CIIT recommendations disappoint Canadian steel industry - CSPA

The Canadian Steel Producers Association is disappointed in the Canadian International Trade Tribunal’s recommendation to impose safeguard measures on only two products. Catherine Cobden, President of the CSPA, said “We are disappointed and concerned with the Tribunal’s recommendations. Since the temporary safeguards came into force, they have stabilized the Canadian steel market and limited the amount of steel that was being diverted to Canada. Furthermore, the continued surge of low-priced imports and deteriorating market conditions that have persisted following the conclusion of the CITT’s hearing were not considered and further supports the imposition of final safeguard measures.”

CSPA is, therefore, urging the Minister to exercise his statutory authority and impose final safeguard measures on all 7 steel products as recommended by the industry in order to protect thousands of middle-class jobs and more than USD 1.1 billion in planned investments. Cobden said “If the Minister of Finance does not put in place final safeguard measures on all 7 products, the steel industry in Canada is threatened with job losses, significant community impacts, market share erosion, and growing investment uncertainty. Furthermore, we see strong expectations from the US government that Canada will take every action necessary to keep artificially low-priced offshore steel out of North America.”

Source : Strategic Research Institute

voda 5 april 2019 15:30

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Canada must finalize steel safeguards to defend Canadian jobs – USW

United Steelworkers Canada union said that Canada’s Federal Finance Minister Bill Morneau has only weeks to make steel safeguards final and ward off the decimation of thousands of Canadian jobs. USW National Director Ken Neumann said "If existing safeguards are not finalized, a surge of foreign imports will devastate Canada's steel industry and communities across the country. These safeguards have been working since they were implemented last fall. The safeguards have had their desired effect and we're extremely concerned about the potential impact on Canadian workers and communities if they are removed. Minister Morneau and his government must act decisively, otherwise Canada will be wide open to a flood of imports of unfairly traded, illegally subsidized foreign steel from jurisdictions including China, Turkey and Vietnam.”

He said "Canadian jobs and communities are now at risk. If the federal government does not take strong action, we will stand alone in the world in leaving our workers, our communities and our steel industry at the mercy of a flood of damaging imports. Countries around the world, from the U.S. to Turkey, from Mexico to European Union members, have taken measures to protect their markets and their workers. Minister Morneau not only has the statutory authority to act, he has a moral obligation to defend tens of thousands of Canadian jobs and hundreds of communities across the country."

The USW is disappointed in the CITT's recommendation that the Finance Minister impose safeguard measures on only two foreign steel products. The recommendation is not binding on the Finance Minister. The USW is calling on Morneau to use his statutory authority to impose final safeguard measures on all seven steel products that are the subject of the safeguard inquiry. Otherwise, the safeguards will expire on April 27, reopening the Canadian market to a surge of imports.

Last October, temporary safeguards were imposed on the seven steel products to protect Canadian steel producers and workers from a surge in imports from countries shut out of the US market by President Donald Trump's tariffs.

Source : Strategic Research Institute

voda 5 april 2019 15:37

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Dunkirk Specialty Steel receives USD 10 million investment for modernization

Observer reported that Universal Stainless and Alloy Products Inc’s Dunkirk Specialty Steel LLC has unveiled several state-of-the-art upgrades and modernization efforts at its Dunkirk facility with USD 10 million capital investment and collaborative efforts by the County of Chautauqua Industrial Development Agency, City of Dunkirk Department of Development, and NYS Empire State Development. The 800,000 square-foot facility has installed a new USD 10 million bar turn and burnish line, as well as a new General Electric phased array nondestructive testing system. The addition of the specialty equipment from Germany and Japan makes the Dunkirk-based unit finishing cell one of the most advanced in the United States.

The equipment upgrades and installations occurred over the last several months, with the new units being employed for production in March 2019. Other significant interior updates were also made in preparation for the installation, including the addition of new high efficiency LED lighting. Equipment was delivered via 35 truck-loads, and took approximately 7,750 man hours to install 200 yards of concrete, 900 anchor bolts, 6,000 feet of conduit, 15,000 feet of tray cable for power and terminations, and 3,000 power and termination switches in the 15,000 square feet project area.

The Dunkirk facility currently employs 285, a majority of which are skilled laborers who produce finished bar, rod, and wire products in a variety of specialty steel grades. Dunkirk Specialty Steel and parent company Universal Stainless and Alloy Products Inc. manufacture products that are sold globally for use in aerospace, heavy equipment, auto, power generation, and oil and gas industries around the world.

Source : Observer

voda 5 april 2019 15:38

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CIIT rules to extend AD duties on steel pipes from China

The Canadian International Trade Tribunal concerning the dumping and subsidizing of carbon steel welded pipe originating in or exported from the People’s Republic of China ruled that In the Tribunal’s view, rescinding the order would deny domestic producers the opportunity to recover from the injury it has thus far sustained. It may also jeopardize additional investments that are contingent on financial performance and risk work reduction among employees or even temporary or permanent layoffs. Accordingly, for the above reasons, the Tribunal finds that the resumption of dumping and subsidizing of the subject goods will likely result, in and of itself, in material injury to the domestic industry.”

The period of review in this expiry review is three full calendar years, from January 1, 2015, to December 31, 2017, as well as the interim period of January 1 to June 30, 2018. For comparative purposes, information was also collected for the interim period of January 1 to June 30, 2017.

Carbon steel welded pipe, commonly identified as standard pipe, in the nominal size range of ½ inch up to and including 6 inches (12.7 mm to 168.3 mm in outside diameter) inclusive, in various forms and finishes, usually supplied to meet ASTM A53, ASTM A135, ASTM A252, ASTM A589, ASTM A795, ASTM F1083 or Commercial Quality, or AWWA C200-97 or equivalent specifications, including water well casing, piling pipe, sprinkler pipe and fencing pipe, but excluding oil and gas line pipe made to API specifications exclusively and excluding (1) carbon steel welded pipe in the nominal pipe size of 1 inch, meeting the requirements of specification ASTM A 53, Grade B, Schedule 10, with a black or galvanized finish, and with plain ends, for use in fire protection applications, (2) carbon steel welded pipe in nominal pipe sizes of ½ inch to 2 inches inclusive, produced using the electric resistance welding process and meeting the requirements of specification ASTM A53, Grade A, for use in the production of carbon steel pipe nipples, and (3) carbon steel welded pipe in nominal pipe sizes of ½ inch to 6 inches inclusive, dual-stencilled to meet the requirements of both specification ASTM A252, Grades 1 to 3, and specification API 5L, with bevelled ends and in random lengths, for use as foundation piles, originating in or exported from the People’s Republic of China.

Source : Strategic Research Institute

voda 5 april 2019 15:38

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US steel import permits in March up 5% YoY – AISI

Based on the Commerce Department’s most recent Steel Import Monitoring and Analysis data, the American Iron and Steel Institute reported that steel import permit applications for the month of March totaled 2,677,000 net tons. This was a 5.0% increase from the 2,549,000 permit tons recorded in February. Import permit tonnage for finished steel in March was 1,825,000 net tons, up 3.6% from the SIMA permits total of 1,762,000 net tons in February. For the first three months of 2019 (including March and February SIMA), total and finished steel imports were 8,704,000 net tons and 6,038,000 net tons, up 0.1% and down 11.7%, respectively, from the same period in 2018. The estimated finished steel import market share in March was 19% and is 21% YTD.

Finished steel imports with large increases in March permits vs. the February permits included black plate (up 187%), reinforcing bars (up 154%), heavy structural shapes (up 118%), steel piling (up 117%), structural pipe and tubing (up 29%), cold rolled sheets (up 18%), hot rolled bars (up 16%), sheets and strip all other metallic coatings (up 13%), and plates in coils (up 13%). Products with significant year-to date (YTD) increases vs. the same period in 2018 include black plate (up 60%), line pipe (up 41%), steel piling (up 30%) and tin free steel (up 19%).

In March, the largest finished steel import permit applications for offshore countries were for South Korea (185,000 net tons, down 7% from February permits), Japan (113,000 net tons, down 13%), Germany (103,000 net tons, up 25%), Taiwan (103,000 NT, up 49%) and Vietnam (81,000 net tons, up 42%). Through the first three months of 2019, the largest offshore suppliers were South Korea (746,000 net tons, down 21% from the same period last year), Japan (349,000 net tons, down 11%) and Germany (320,000 net tons, up 11%).

Source : Strategic Research Institute

voda 5 april 2019 15:42

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JSW Steel plans to raise funds via dollar bond - Report

Business Line, citing a merchant banker who is in the know of the development, reported that JSW Steel plans to raise USD 500-600 million (INR 3,500-4,100 crore) through issue of dollar bonds to part-finance its expansion plans and that the bond issue is expected to be announced early next week as the tenure, pricing and finer details are being finalized. The banker said “The road-show for the bond issue should begin by Tuesday.”

An analyst said “Dollar bond will help JSW Steel fund expansion without much stress on its balance sheet.”

The company had embarked on a massive brownfield expansion programme with an investment to INR 44,400 crore by March 2020. The investment will create additional capacity of 6.6 million tonnes of crude steel and 3.3 million tonnes of downstream capacity. JSW Steel will invest INR 15,000 crore this financial year and INR 14,687 crore in the next. Post the brownfield expansion, its capacity will go up to 24.6 million tonnes a year from 18 mtpa.

Source : Business Line

voda 5 april 2019 15:43

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GMS Market Commentary on Shipbreaking in Turkey in Week 13 - DESPERATE!

After a few weeks of stability in local steel plate prices that lingered around the USD 325/MT mark, this week, plate prices reportedly declined by about USD 10/MT, settling in at the USD 315/MT level. Adding to the pressure for local Recyclers has been the Turkish Lira, which declined to nearly TRY 5.70 levels against the U.S. Dollar, only to have ended the week around the TRY 5.50 mark.

However, unlike the Pakistani market, Turkish Recyclers seem to be aware of the fact that presenting weak offers will only hurt their chances at securing any tonnage, amidst an ongoing pinching shortage of vessels. This in turn has driven local Recyclers desperate to the point that local offerings have remained largely steady and in some cases, even higher numbers have reportedly been tabled on suitable tonnage.

How much longer will this feat continue is anyone’s guess? However, it certainly seems to have presented Ship Owners and Cash Buyers with a window of opportunity at committing their units at firmer levels.

Source : Strategic Research Institute

voda 5 april 2019 15:43

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NLMK Metalware masters the production of furniture fasteners

NLMK Metalware, part of NLMK Group's Long Products Division, is pleased to announce that now it is supplying a new type of steel products - 7x50 mm galvanized furniture fasteners used in the production of cabinet furniture. The first batch of this popular fastener has already been shipped to consumers. Furniture fasteners (confirmat screws) are used for furniture assembly, joinery and in wood construction. They ensure stable joining of parts and are easy to use. The machines of NLMK Metalware's fasteners shop were equipped with the necessary tools - dies, bushings, punches, etc. to enable the production of furniture fasteners. The plant will produce close to 650 tonnes of confirmat screws annually.

Dmitry Stopkevich, Head of NLMK Russia Long Products Division, said “Under Strategy 2022, NLMK Metalware focuses on manufacturing high value-added products. The production of furniture fasteners is the first step in this direction. This new product will help the Company enter the segment, in which the share of imports was close to 80% in 2018.”

NLMK Metalware is one of the largest producers of metalware in Russia. The company's product mix includes close to 900 types of wire, screws and nails.

Source : Strategic Research Institute

voda 5 april 2019 15:44

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Tax evading steel industry in Sri Lanka depriving state coffers millions - MP

UNP lawmaker Mujibur Rahuman has proposed a proper taxation system for the steel industry in Sri Lanka saying the absence of such a system is costing the state millions in tax rupees. Moving an Adjournment Motion in Parliament on a ‘Proper taxation method for steel industry’, Rahuman said there is a high demand for steel bars and rods of different sizes made out of fresh steel or recycled steel by the construction industry, but local producers tend to mislead the tax authorities by amending the sales and manufacturing records. He said “Steel manufacturers in the country are not taxed properly. Most of these factories are tax evading and are engaged in frauds. Annually, the tax evasion from the steel industry leads to a loss of INR 22 billion Value Added Tax. I propose a better system to keep a tab on the activities of these factories.”

The MP noted that most of these steel factories are scattered in the Western Province and alleged that according to information he received, most of these factories defraud by evading the VAT and Nation Building Tax.

The MP said that 45,000MT of steel bars are used per month for concrete construction works in different part of the country. He alleged “Each tonne of steel is sold subject to 15% VAT and 2% NBT. On certain occasions, the tax is evaded showing only about 30% of the sales. They cover up the actual sales and manufacturing data. “

Source : FT

voda 5 april 2019 15:46

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Steel stockholder Meridian Metal Trading enters administration

Express & Star reported that a Dudley-headquartered steel stockholding business in UK has entered administration. Meridian Metal Trading, which was formed in 1987, employs around 170 people across several locations in the UK including service centres in Guildford and Sheffield and sales offices in Bolton and Newport, South Wales. Allan Graham and Matthew Ingram, both of professional services firm Duff & Phelps, were appointed joint Administrators to the company based at Grazebrook Industrial Park, Peartree Lane.

Mr Graham said “Meridian is one of the largest, fully independent steel stockholders and processors in the UK and one of the best known stockholders in the sector. The Company processes steel sheet and coil, and supplies close to 250,000 tonnes of steel to hundreds of customers annually. It is our intention to continue to trade the business until a buyer is found, a process that we do not think will take long as there are already a number of expressions of interest. As of today there have been no redundancies and it is very much business as usual. We are receiving great support from the experienced workforce, suppliers and customers to find a positive outcome.”

The company had been in talks with its five main suppliers, credit insurers and Secure Trust Bank for months after a potential sale fell through. Meridian has been having to pre-pay for steel.

It is a leading supplier of galvanised, hot rolled, cold reduced, electro zinc and aluminised slit coil sheets and sheared blanks in both drawing and high strength grades. The head office has a warehouse of more than 150,000 sq ft linked to fully integrated real-time computer systems, which allows Meridian to offer just-in-time deliveries. The Sheffield and Guildford service centres offer cut-to-length slit coil and blanks in a range of grades and surface conditions.

Source : Express & Star

voda 5 april 2019 15:52

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MBIE knocks NZ Steel's latest complaint on Chinese imports

Scoop Media reported that New Zealand’s Ministry of Business, Innovation and Employment took longer and wrote a bigger report but still rejected New Zealand Steel's latest complaint that Chinese imports have an unfair government subsidy. The ministry was asked to investigate by BlueScope Steel-owned NZ Steel, which claims imported goods are being dumped on the local market, and that China is unfairly subsidising those firms. MBIE has to look at whether goods are dumped separately from whether they're subsidised. Both studies were meant to be completed in October. While it wrapped up the dumping component on time, a High Court ruling complicated things for MBIE. That judgment found shortcomings in a separate subsidy review into imported Chinese galvanised steel coil and ordered the ministry to revisit that work.

MBIE's latest report took that judgment to heart, acknowledging NZ Steel's successful judicial review in the March 2019 report, and saying those issues had been addressed in its latest recommendation to the minister. A contentious issue for NZ Steel was MBIE's testing of whether Chinese steel companies were meaningfully controlled by the Chinese government. The ministry said this investigation differed from earlier ones in that three of the four sample Chinese manufacturers cooperated and it was able to verify the information provided. With that extra help, MBIE came to the same conclusion it did on two similar accusations that Chinese imported steel products were unfairly subsidised: Chinese government support was so small as to be meaningless. The report said "MBIE’s conclusion is that on the basis of the primary information provided direct by interested parties and substantiated by verification or from other evidence available to MBIE, and for the programmes concerned, there was no financial contribution by a government or any public body. In addition, in relation to claims of preferential loans, MBIE has established that the cooperating sample manufacturers did not receive loans at preferential rates, while in relation to providers of hot-rolled coil (HRC), the prices paid by the sample manufacturers were broadly similar whether the supplier was an SIE (state-invested enterprise) or not, and were also similar to world export prices."

The 263-page document is the longest of the three subsidy reports produced by the ministry during the past two years, and included greater detail on how it uses information in its investigations.

Source : Scoop Media

voda 5 april 2019 15:53

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Votorantim earns BRL 2.0 billion in 2018

Votorantim SA recorded net income of BRL 2.0 billion in 2018, against BRL 810 million in the previous year, representing an increase of 141%. Net revenue increased 19% compared to 2017, totaling BRL 31.9 billion, and adjusted Ebitda was BRL 6.9 billion, 47% more than in 2017. The result is mainly explained by the better result presented by the Brazilian cement operations. Another relevant factor was the depreciation of the real against the US dollar, which positively impacted the consolidation of results of operations abroad. Higher sales volumes of smelters zinc and higher aluminum prices also contributed to the positive variation in net revenue and adjusted Ebitda. In addition to better operating results, the increase in net income in the comparison of the periods is also due to the higher result from companies accounted for using the equity method. Fibria's results recognized under the equity method until March 2018 and, thereafter, in the form of dividends contributed BRL 1 billion, while the results of Banco Votorantim contributed BRL 530 million.

João Miranda, CEO of Votorantim SA, said "We had hoped that 2018 would be a volatile year, which in fact proved itself. As a result, we began the year with great prudence in the execution of the various transformation fronts of our portfolio. On the other hand, we are not discouraged in the reflection on the steps we would take in relation to this transformation.”

In 2018, important changes occurred in the transformation of the company's portfolio: the announcement of the business combination between Fibria and Suzano (March); the conclusion of the combination of the long steel business in Brazil between Votorantim Siderurgia and ArcelorMittal (April); the completion of the creation of the joint venture between Votorantim Energia and the Canada Pension Plan Investment Board (CPPIB) (May); and the acquisition by auction of the shareholding control of Companhia Energética de São Paulo (CESP) by this joint venture (October).

Source : Strategic Research Institute

voda 5 april 2019 15:54

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Brazilian steel pipe production set to grow despite EU tariffs

ANSA reported that the European Union's decision to impose tariffs on Brazilian steel products, announced in January, set off an alarm in the sector in Brazil. Seen as part of the trade war triggered by US President Donald Trump, the Brussels measure will affect seven sectors of the national steel industry, such as pipes, sheets and blades, which will pay 25% in surcharges starting from a certain quota. Mr Carlos Eduardo Baptista, president of the Brazilian Metal Tubing and Accessories Industry Association (Abitam), said “It is a complication, I think we will not emerge unscathed from these decisions.”

Currently, Brazil represents 2% of the global production of pipes, with a total of 5 million tonnes a year. According to Baptista “The Brazilian market has a strong presence of multinationals, such as the French Vallourec and the Italo-Argentine Tenaris, which maintain global strategies and have plants in other countries. If the Brazilian product becomes more expensive, they might move their exports towards other units. As soon as barriers are created on one side or another, that produces problems. I think that well in any case feel the impact of the these reprisals among great powers, although almost at the root all these measures come from China's decision to market all over the world steel products with a price well below trade standards.”

Source : ANSA

voda 5 april 2019 15:56

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Cheap Iranian steel flooding Lebanon - Report

The National reported that steel traders in Lebanon are up in arms over a surge in cheap Iranian steel and iron imports this year that no one is admitting to bringing it into the country for fear of falling foul of American sanctions regulations imposed on doing business with Tehran. Local businessmen are pointing fingers at each other and Hezbollah, Iran’s main political ally in Lebanon, for facilitating the low-cost Iranian imports that have disrupted the local market. Concerned traders quietly held a meeting with the economy minister to discuss the issue but all are reluctant to speak publically.

Two separate local steel traders told The National that between USD 9 million and USD 15million of steel was imported from Iran during the first three months of the year.

A local banker who asked to remain anonymous given the sensitivity of the topic said that traders find ways around sanctions by paying in cash or through local companies that serve as fronts and do not appear to have links with Iran.

Importing goods from Iran is not against Lebanese law, but paying for them through banks, including Lebanese institutions, could breach sanctions imposed against Iran by the United States. Lebanese financial institutions are particularly wary of US rules given the now-defunct Lebanese Canadian Bank agreed to pay USD 102 million settlement in 2013 after being found facilitating payments to Hezbollah and money laundering. The bank, at the time one of the largest in the country, shut up shop and sold viable assets to Societe Generale in Lebanon.

Source : The National

voda 8 april 2019 14:54

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Tata Steel’s 4QFY19 and FY19 - Key Production and Sales Figure

Tata Steel India - India operations achieved the highest ever Crude Steel production in 4QFY19 driven by better plant availability across the locations including ramp-up at Tata Steel BSL. 4QFY19 production grew by 46%YoY to 4.47 million tonnes, which on an annualized basis works out to 17.88 million tonnes. India operations recorded the highest ever sales volume in 4QFY19; volumes increased by 56%YoY and 22%QoQ to 4.73 million tonnes during the quarter, which on an annualized basis works out to 18.92 million tonnes. Automotive & Special products sales crossed 2 mn tons plus milestone in FY19.

Tata Steel Europe - 4QFY19 sales improved as production grew by 17% QoQ with better plant availability. Blast furnace 5 at Port Talbot, which was under shutdown for life extension program since September 2018, resumed operations in January 2019

South East Asia - 4QFY19 production was down on QoQ basis mainly due to maintenance shutdowns at NatSteel Holdings during the Chinese New Year holidays. Sales volume was 3.5% higher on QoQ basis reflecting better sales at Tata Steel Thailand with improved rebars market sentiment.

Voor cijfers, zie bijlage

Source : Strategic Research Institute

Bijlage:

voda 8 april 2019 14:56

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thyssenkrupp will establish Additive Manufacturing TechCenter Hub in Singapore

thyssenkrupp will establish an Additive Manufacturing TechCenter Hub in Singapore this year. The announcement – made at Hannover Messe 2019, the world’s leading trade fair for industrial technology – illustrates the company’s initiative to bring its engineering and innovation capabilities to customers in Asia Pacific. The future Singapore Additive Manufacturing TechCenter Hub, supported by the Singapore Economic Development Board (EDB), will serve as the regional hub for the company’s Mülheim TechCenter and aims to unlock the potential of additive manufacturing, also known as 3D printing, for customers in Singapore and across Asia Pacific. thyssenkrupp first launched a dedicated TechCenter for additive manufacturing in Mülheim an der Ruhr, Germany in 2017, with capabilities to deliver the full spectrum of the additive manufacturing value chain.

thyssenkrupp's TechCenter Hub in Singapore, together with the existing TechCenter in Germany, will focus on innovations around additive manufacturing solutions in metal and plastic technologies for customers in automotive, capital goods, chemical, mining and other heavy industries. It will provide a complete range of additive manufacturing services from part identification diagnostics, project delivery to training and capability building. The TechCenter Hub will also host additive manufacturing engineers who will work together with their colleagues in Germany to develop various products and solutions leveraging on this innovation.

This announcement comes on the heels of another company milestone, with the signing of a memorandum of understanding (MoU) between Singapore’s Defence Science and Technology Agency (DSTA) and thyssenkrupp Marine Systems in February 2019. The MoU entails the partnership of DSTA and thyssenkrupp in working on new technologies such as additive manufacturing for naval applications.

Source : Strategic Research Institute

voda 8 april 2019 15:18

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CBI raids Bhushan Steel & Power Limited promoters premises in bank fraud case

PTI reported that the CBI carried out searches in multiple cities on Saturday at the premises of Bhushan Steel and Power Ltd after registering a case against them for alleged cheating amounting to INR 2,348 crore. The searches were carried out at 18 locations in a number of cities, including the Delhi-NCR, Chandigarh and Kolkata at office and residential premises of the company, its directors and promoters and their associates. PTI cited a CBI spokesperson as saying that “It was alleged that the accused entered into a criminal conspiracy among themselves and with unknown public servants and others to cheat banks / financial institutions / govt exchequer.”

CBI Sunday carried out searches after registering a case of cheating against Bhushan Power and Steel Limited chairman Sanjay Singhal and others. The CBI has booked Sanjay Singhal, chairman and managing director of the company, Aarti Singhal, vice chairman of the company, directors Ravi Prakash Goyal, Ram Naresh Yadav, Hardev Chand Verma, Ravinder Kumar Gupta and one Ritesh Kapoor besides unidentified public servants.

Loans worth INR 47,204 crore were availed from 33 banks and financial institutions from 2007 to 2014 and the company defaulted on their repayments.

Source : PTI

voda 8 april 2019 15:20

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Essar Steel’s CoC sets up panel to oversee transition

The Hindu reported that Essar Steel’s committee of creditors has set up a monitoring committee to oversee the operations of the steel firm and ensure smooth transition to ArcelorMittal, the successful resolution applicant. The monitoring committee is headed by resolution professional Satish Gupta and has four members from the lenders and three from ArcelorMittal. The lenders, SBI, IDBI Bank, ICICI and Edelweiss Asset Reconstruction Company, have their representatives as members of the monitoring committee.

The development comes after the National Company Law Appellate Tribunal asked the CoC to set up a monitoring committee to oversee the operations of the steel firm and smooth transition to ArcelorMittal. The resolution professional will be the chairperson of the monitoring committee and will act in accordance with law to ensure that the company is a going concern.

Source : The Hindu

voda 8 april 2019 15:20

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NLMK DanSteel expands its niche plate line

NLMK Group, a global steel company, has begun hot testing of its accelerated cooling system at NLMK DanSteel's hot-rolling plate mill in Denmark. The new equipment will fundamentally change the company's product mix and increase the share of niche plate, including for offshore wind power generation and pressure vessels. The new accelerated cooling system is in-line with the hot-rolling mill. After rolling to the final thickness, the plate is fed into the cooling system and cooled rapidly with water under controlled conditions. Thermomechanical rolling allows the production of plates with improved weldability while improving the strength and toughness. Improved weldability is especially important in the production of underwater foundations of wind towers that operate in aggressive maritime environments. The new cooling system will boost the production of niche premium plate from the current 0.1 million tonnes to 0.35 million tonnes.

Ben de Vos, NLMK International CEO, said "The introduction of the new in-line cooling system at NLMK DanSteel is an important project in our Strategy 2022 portfolio. It will fundamentally change our product mix due to the ability to meet more demanding mechanical properties in our plate. This will the company to grow the share of niche plates in its portfolio to 45%”.

Investment in the project totalled more than EUR 20 million. SMS supplied the main equipment for the accelerated cooling system and water treatment complex. Currently, the equipment is being fine-tuned while the team is mastering the new cycles of thermomechanical rolling and accelerated cooling. After the hot tests, the company will initiate production of the wider range of plates and will start the certification of these products. In Q3 2019, it is planned to start the production of large industrial batches of plate for the energy sector.

Source : Strategic Research Institute

voda 8 april 2019 15:23

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Moody's assigns Ba2 to JSW Steel's proposed senior unsecured notes

Moody's Investors Service has assigned a Ba2 rating to the proposed senior unsecured notes to be issued by JSW Steel Limited (Ba2 positive). It said “The outlook is positive. The proposed notes rank pari passu with JSW's existing senior unsecured notes and are therefore rated at the same level as these notes, and also at the same Ba2 rating as JSW's corporate family rating (CFR).”

Kaustubh Chaubal, a Moody's Vice President and Senior Credit Officer, said "The Ba2 CFR continues to reflect JSW's large scale and strong position in its key markets, good product and end-market diversification, and increasing focus on value-added products and retail sales. The company's credit metrics retain their improving trajectory, principally due to competitive and efficient production costs, solid domestic demand conditions and a supportive price environment, even as input costs register a slight increase."

The CFR also incorporates the inherent cyclical nature of the steel industry and JSW's limited raw material integration. Moreover, the company's large capital spend aggregating INR150 billion each year will constrain free cash flow generation over the next 12-18 months.

The proposed issuance constitutes JSW's proactive approach in raising long term financing before incurring capex, diversifying funding sources, and optimizing interest costs.

The proposed notes are rated Ba2 and rank pari passu to the company's $500 million senior unsecured notes maturing in November 2019 and the $500 million senior unsecured bonds maturing in April 2022.

The bond issuing entity has significant operations, and its role is as the holding company for the group. As such, there is no structural subordination for bondholders.

At 31 December 2018, secured debt constituted 50% of total debt, down from 71% in March 2014. With the proposed bond issuance, Moody's expects that the proportion of secured debt to total debt will fall further. The improving split between secured and unsecured debt in JSW's capital structure results in the unsecured bonds being rated at the same level as the CFR.

Proceeds from the issuance will be used towards retiring some of the company's debt, as well as funding capital expenditure and other purposes, in accordance with the Reserve Bank of India's External Commercial Borrowings regulations.

Moody's estimates that JSW's adjusted debt/EBITDA at 31 March 2019 will remain flat versus the level at 31 March 2018 of 2.6x. Based on sustainable EBITDA/ton of INR9,500, Moody's estimates the company's leverage will reach around 2.8x-3.2x in the fiscal year ending March 2020, comfortably below its upgrade trigger for a Ba1 CFR.

The positive ratings outlook reflects the improving trajectory of JSW's credit metrics, principally due to its competitive and efficient production costs.

The positive outlook also incorporates Moody's expectation that the company will remain selective in its acquisitions — funding them with a prudent mix of debt and equity — and that any such acquisition will be earnings accretive and help in rapid deleveraging, leading to at most only a temporary spike in adjusted debt/EBITDA.

Moody's would consider upgrading the ratings if the company maintains adjusted debt/EBITDA below 3.5x and EBIT/interest in excess of 3.0x.

A downgrade of the ratings is unlikely in the near term, given the positive ratings outlook.

Nevertheless, a sharp shift in industry conditions that triggers declining sales volumes and dents pricing and profitability would pressure the ratings. Specific metrics indicative of downward ratings pressure include adjusted debt/EBITDA in excess of 4.0x, EBIT/interest coverage below 2.0x and EBIT margins below 12%.

Downward ratings pressure could also build if the company undertakes a large debt-financed acquisition without an immediate and meaningful counterbalancing effect on earnings, thereby resulting in a sustained increase in leverage. Execution risks related to the timely and seamless integration of the acquired business also pressure the ratings.

The principal methodology used in this rating was Steel Industry published in Septemeber 2017. Please see the Rating Methodologies page on www.moodys.com for a copy of this methodology.

JSW Steel Limited is one of the largest producers of steel products in India, with an installed steelmaking capacity of 18 million tonnes per annum.

Source : Strategic Research Institute

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