Eurobench.com

voda 31 maart 2015 16:39

0

Some Chinese mills going slow on HR exports for May shipment - TEX

According to information obtained by a source, some blast furnace mills of China like Rizhao Steel are reported to have informed trading companies not to proceed with export negotiations on hot -rolled steel coils on spot basis for the remote regions for May shipment.

It is said to be because it has become the situation for them to have to reduce or halt export quantity due to a recovery in domestic demand for HR coils. The Chinese domestic market of HR coils seems to have maintained levelling off of prices last week. It is uncertain whether demand in the springtime begins to appear in full swing but prices are strongly felt to show bottoming out and crawling along the bottom.

China's blast furnace mills seem to have converted excess quantity of HR coils due to sluggish domestic demand to export. Accordingly, the market in each country has been glutted with Chinese HR coils, which put downward pressure on prices.

However, as such mills to suspend export have appeared, there is a possibility for export quantity of HR coils from China to decline. Russian export offers of HR coils disappeared due to an upsurge in domestic demand. China and Russia had engaged in cutthroat competition of HR coils in the past but both countries' competition vanished and offers at just like distressed prices disappeared.

Prices of HR coils in the remote regions are felt to have bottomed out at USD 400 CFR. Although there are adverse factors including a fall in prices of raw materials, customers are seen to increase purchase quantity gradually due to low inventory once prices rebound.

However, in the Pacific Ocean side of Central and South America, a price war has still continued. It is because despite of withdrawal of Russian mills, in turn, Brazil's CSN begins to compete at USD 400 CFR against a backdrop of the weak Real with Chinese mills.

Source - The TEX Report

voda 31 maart 2015 16:39

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Iran's crude steel production up by 8pct

IRNA reported that the volume of crude steel produced in Iran in the first 11 months of the last Iranian calendar year (March 2014 to February 2015) witnessed a growth of 8%.

A recent report by Iranian Mines and Mining Industries Development and Renovation Organization shows that Iranian steel manufacturers have produced 15,421,059 tonnes of steel in the said period.

The figure shows an 8% rise compared with the volume of steel produced in the same period the previous year, which amounted to 14,310,590 tonnes.

The report also indicates that 15,685,291 tonnes of different steel products were manufactured in the country from March 2014 to February 2015, showing a 4% increase compared with the 15,148,558 tonnes produced in the same 11 months the year before.

Earlier last week, a report by the World Steel Association also showed that Iran's steel production output in January to February 2015 increased by 15% from 2.4 million tonnes in the same 2 month period last year.

Source – IRNA

voda 31 maart 2015 16:41

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India and Kazakhstan negotiating to invest in Iran's steel sector

India and Kazakhstan are negotiating with Iran to invest in the country's steel sector.

Mr Mehdi Karbasian deputy industry minister of Iran said that "We have announced readiness to accept Indian investment in the steel sector and they are planned to start activity in the country. We are also negotiating with Kazakh companies to invest in our steel, zinc, and aluminum projects."

Mr Karbasian said that a large number of representatives of foreign mining companies have visited Iran over the past year and have announced readiness to invest in Iran.

He said that in 2014, the number of foreign companies which are ready to participate in Iran's mining projects is on the rise. One of the main policies of the administration is to encourage Iranian investors living overseas to participate in domestic development projects.

He added that about 45 producers sent representatives to a steel conference in Tehran last year to study export opportunities and investing in Iran's domestic industry.

Source - www.inform.kz

wiko1948 31 maart 2015 16:43

0

Heb 1560 stuks am tegen 15.53 eur. iemand een idee over bijkopen of opties. wat is wijsheid?

voda 31 maart 2015 16:44

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quote:
snuf13 schreef op 30 maart 2015 16:33:
Mooi hoor, al die lange verhalen, perfect, daar zit iedereen op te wachten..... BRAVO!!!!

Je hoeft het niet te lezen hoor snuffie!

(zeker te moeilijk voor je?)

voda 1 april 2015 17:15

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'Extra werkers voor Franse fabriek'

WOENSDAG 1 APRIL 2015, 11:37 uur | 292 keer gelezen

LUXEMBURG (AFN) - Staalconcern ArcelorMittal neemt 253 nieuwe werknemers aan voor zijn fabriek in het Franse Fos-sur-Mer. Dat maakte het bedrijf woensdag bekend.

De nieuwe werknemers krijgen een voltijdscontract. ArcelorMittal zei verder dat dit jaar 40 miljoen euro zal worden geïnvesteerd in de locatie. Fos-sur-Mer ligt ten westen van Marseille, in het zuiden van Frankrijk.

[verwijderd] 1 april 2015 17:21

0

berichtje aan voda.

open een site over de rabo certificaten.
en geef uw mening.
Kom moeilijk op een forum hierover.
Ben al fanatiek bezig daarmee vanaf maart 2014.
toen koers inkoop 104,85
nu, met 3 x de normale omzet de laatste dagen, koers 114,620
PLUS 6,5% dividend en wordt netjes per drie maanden uitbetaald.

[verwijderd] 1 april 2015 17:23

0

Snij mezelf aardig in de vingers, met Arcelor.
Gelukkig maken TNT, Galapagos en de Rabo cert. heel veel goed.

voda 1 april 2015 17:41

0

quote:
j leek schreef op 1 april 2015 17:21:
berichtje aan voda.

open een site over de rabo certificaten.
en geef uw mening.
Kom moeilijk op een forum hierover.
Ben al fanatiek bezig daarmee vanaf maart 2014.
toen koers inkoop 104,85
nu, met 3 x de normale omzet de laatste dagen, koers 114,620
PLUS 6,5% dividend en wordt netjes per drie maanden uitbetaald.

Je hebt toch deze draad in de Koffiekamer?

www.iex.nl/forum/Topic/1323034/Koffie...

[verwijderd] 1 april 2015 17:46

0

quote:
voda schreef op 1 april 2015 17:41:
[...]
Je hebt toch deze draad in de Koffiekamer?

www.iex.nl/forum/Topic/1323034/Koffie...

te weinig respons daar.
blijkbaar zijn de rabo certificaten ver onder gewaardeerd.
doen het echter beter als de meeste andere aandelen.

voda 1 april 2015 18:57

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RINL builds 120 MW pollution free BF-CO gas based Captive Power Plant

RINL, the corporate entity of Vizag Steel Plant crossed another milestone by launching a novel project to generate a “Completely pollution free 120 MW Power with 100% Blast Furnace Gas and Coke Oven Gas”, the first of its kind in Indian Steel Industry.

In order to efficiently utilize the surplus Blast Furnace g, the state-of-the-art technology Boiler Turbo Generator Power Plant designed for firing 100% BFG and Coke Oven Gas for the new captive power plant of 120 MW capacity.

Mr P Madhusudan CMD of RINL lighted up the Boiler No 1, signaling the commissioning of power plant, build at a cost of INR 676 crores.

Speaking on the occasion, Mr Madhusudan observed that “It is a step towards achieving self sufficiency in power generation and to reduce dependency on the State Grid in the process of steel making.

The average power requirement of VSP at 6.3 million tonne per annum stage will be 418 MW. RINL is currently having 3 Turbo Generators each 60 MW (180 MW) capacity and 2 Turbo generators of 67.5 (135MW) each taking the total captive power generation capacity of 315 MW.

Source – Strategic Research Institute

voda 1 april 2015 18:57

0

India to become world's 3rd largest automobile manufacturer by 2020 - Ford Motors

PTI cited a top official at Ford Motor as saying that India's automotive industry is expected to reach 7 million vehicles milestone by 2020, making the country the third-largest auto manufacturer in the world, behind the US and China.

Mr David Dubensk, President and Managing Director of Ford Motor Private Ltd said that the automotive sector has a direct bearing on the economy with a near 7% contribution to the GDP, playing an important role in the development of other crucial sectors as well.

Mr Dubensky said that India is one of the largest automobile manufacturers in the world and as the country moves towards this milestone, the opportunities to build a career in the automotive sector are tremendous.

He said by working together as one global team over the last 110 years, Ford been able to fully leverage the resources around the world.

He added that "We are building great products, creating strong business, and contributing to a better world."

Source – PTI

voda 1 april 2015 19:00

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US Steel to cut production at Minntac Plant

United States Steel Corporation announced that it will adjust operations and temporarily idle a portion of its Minnesota Ore Operations – Minntac plant in Mt Iron, Minn., effective June 1.

It said “This action is due to the company's current inventory levels and ongoing adjustment of its steelmaking operations throughout North America. The company will continue to operate Minntac at reduced capacity in order to meet customer demand.”

It added “The company routinely adjusts production at its operating facilities to reflect market fluctuations. These ongoing operational adjustments are a result of challenging market conditions that reflect the cyclical nature of the industry. Global influences in the market, including a high level of imports, unfairly traded products and reduced steel prices, continue to have an impact. As part of the temporary idling, all employees at Minntac have been advised of the upcoming temporary idling and are being issued notices under the Worker Adjustment and Retraining Notification (WARN) Act. The number of employees impacted will be based upon operational and, or maintenance needs.”

Source – Strategic Research Institute

voda 1 april 2015 19:01

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BaoSteel on track to start in Zhanjiang operations in September

China Daily reported that with construction of the nine main parts of its steel complex proceeding smoothly, Baosteel Group's new project in Zhanjiang is well on track to start operating in September.

Zhanjiang Mayor Wang Zhongbing said that about half of the more than CNY 40 billion investment has been utilized since construction of the project, located on Donghai Island, China's fifth largest island, began in May 2013. The complex is designed to have an annual capacity of 8.75 million tonnes of steel in its first phase.

Mr Wang said that a result of phasing out obsolete steelmaking capacity in Guangdong province, the project is set to become an efficient thin sheet and carbon steel production base.

Mr Wang said that "I trust that Baosteel has the capital, technology and ability to make the environmental protection of the Zhanjiang steel project the best."

Source - China Daily

voda 1 april 2015 19:01

0

BaoSteel's listed arm had declines in revenue and net profit in 2014

Baoshan Iron & Steel Company Limited saw declines in both revenue and net profit last year as iron ore prices nearly halved. The listed firm had revenue of CNY 187.41 billion last year, down 1.2% from 2013 and the net income was CNY 5.79 billion down 0.45%.

A manager of Baosteel Group's procurement department said the listed subsidiary had signed long term contracts with providers to buy ore at high prices in the past, so it bought little low-priced ore last year.

Baoshan Iron & Steel's first three quarterly reports showed that it had net profit of CNY 5.01 billion up 7.94% from the same period in 2013. But the company had only CNY 682 million net profit in the Q4 down 42% from the same month in 2013.

A preliminary financial report on January 15 said that an overhaul of blast furnaces and production lines would hurt performance in the fourth quarter, and mean losses for a subsidiary called Nantong Baosteel Iron & Steel Company.

The Nantong subsidiary, which makes steel products for construction, has suffered losses in recent years and stopped production in April 2014. Workers have been offered compensation to quit.

Mr Hu Yanping, an analyst at information portal custeel said that “The overhaul caused the company to cut output by 500,000 tonnes in the fourth quarter. Baoshan Iron & Steel also had cut the prices. The company had cut the price of its cold rolled products by CNY 200 and that for the hot rolled variety was cut by 100 yuan, price lists show.”

UBS Securities Company Limited said that it is optimistic about Baoshan Iron & Steel's performance this year and the firm is still a top choice for investment because of its leading market share.

Source – English Caixin

voda 1 april 2015 19:02

0

Ukraine prolongs scrap metal VAT exemption until 2017

The Cabinet of Ministers of Ukraine has prolonged its resolution defining a list of scrap ferrous and nonferrous metal, the transactions with which, in particular imports, are exempt from value added tax until January 1st 2017.

The amendments are stipulated in cabinet resolution No. 136 of March 25, 2015 which amended resolution No. 15 of January 12, 2011, under which scrap metal transactions were exempted from VAT in 2011-2013.

The cabinet in resolution No. 43 of February 5th 2014 also amended resolution No. 15 of January 12, 2011, exempting scrap metal transactions from VAT in 2014.

As reported, cabinet resolution No. 15 defines the list of scrap metals, which includes scrap cast iron, stainless steel and alloyed steel, which are exempt from VAT. Ferrous scrap metal is also exempt from VAT.

In addition, scrap non-ferrous metal, in particular, scrap zinc, copper, copper alloys, plain nickel, nickel alloys, scrap aluminum, zinc and tin, tungsten, molybdenum, tantalum and raw magnesium are exempt from VAT.

The list also include scrap magnesium, magnesium powder, scrap cobalt, bismuth, cadmium, titanium, zirconium, manganese, beryllium, chromium, germanium, vanadium, thallium and ceramic metal.

Source – Interfax

voda 1 april 2015 19:03

0

MMC Norilsk announces audited consolidated IFRs financial results and FY 2014

MMC Norilsk Nickel announced audited IFRS financial results for the year ended December 31st 2014.

FY 2014 HIGHLIGHTS;
1. Consolidated revenue increased 3% YoY to USD 11.9 billion on the back of stronger nickel and palladium prices and growth in precious metals production volumes.

2. EBITDA grew 35% YoY to USD 5.7 billion driven by a substantial reduction of cash operating costs on the back of cash cost optimisation, strong LME prices and rouble devaluation as well as top line growth.

3. EBITDA margin expanded to 48%, a leading position in the global metals and mining industry.

4. Net profit almost tripled to USD 2 billion while net profit adjusted for non-cash items reached USD 4 billion.

5. All key investment projects planned for financial year 2014 have been successfully completed on time and on budget, with CAPEX decrease by 35% YoY to USD 1.3 billion resulting from RUB depreciation, improved payment terms with contractors and successful roll out of capital allocation discipline.

6. Working capital declined by approximately USD 2 billion YoY to USD 1.1 billion by the year end 2014, contributing to the four fold reduction of net working capital cumulatively over the last two years.

7. Free cash flow increased 81% YoY to USD 4.7 billion driven by the expansion in EBITDA, lower CAPEX and sharp reduction of the working capital.

8. Leverage remained conservative with Net Debt/ EBITDA ratio decreasing from 1.1x as of December 31st 2013 to 0.6x as of December 31, 2014, leaving the Company with the strongest balance sheet among global metals and mining majors.

9. The Company retained investment grade credit rating (BBB-) from S&P despite the latter's downgrade of the Russian sovereign rating to BB+ in January 2015.

10. Dividends distributed to shareholders in 2014 increased 10% YoY to USD 20.7 per share.

11. In May 2014, Norilsk Nickel signed an agreement with Russian federal and regional authorities to shut down the outdated and inefficient Nickel Plant in the city of Norilsk in 2016.

12. Exit from non-Tier 1 assets progressed well: the Company closed the deals for disposal of Australian (North Eastern Goldfields, Avalon, Cawse, Lake Johnston, Black Swan and Silver Swan) and signed an agreement to sell African assets (Tati Nickel and an equity stake in Nkomati mine).

13. In March 2015, the Russian government issued an exploration and mining license for Maslovskoye PGM, nickel and copper deposit to Norilsk Nickel.

14. The company plans to buy back up to USD 500 million of shares in 2015. The shares will be purchased through open market operations and are expected to be cancelled afterwards.

Mr Vladimir Potanin CEO of Norilsk Nickel said that "I am pleased to report to our shareholders that Norilsk Nickel generated strong financial performance in 2014. Implementation of the new corporate strategy focused on enhancing Norilsk Nickel's position as the global industry leader in terms of free cash flow generation and return on invested capital was well on track. Although the high volatility on the commodity markets was challenging for the global mining industry, overall we consider 2014 as a favorable year for our business. Growth in realized prices of our strategic metals, nickel and palladium alongside an increase in precious metals sales volumes, led to the revenue growth by 3% YoY to almost USD 12 billion. Management focus on financial efficiency backed by a favourable foreign exchange rates movement resulted in a strong EBITDA growth to USD 5.7 billion, expansion of EBITDA margin to the global industry leading 48% and a three-fold increase in net income.”

Mr Potanin said that “While all key investment projects planned for 2014 were successfully completed, the roll out of the new investment governance discipline as well as Russian rouble devaluation allowed us to optimize capex. We are also progressing well with our non-core asset disposal programme. We made another major strive in sustainably releasing working capital, having freed up another USD 2bn in 2014, well above our targets and also well ahead of the schedule. Major reduction of working capital, combined with increased EBITDA and optimized CAPEX resulted in an over 80% growth of free cash flow to USD 4.7 billion.”

He said that “We maintained the industry's lowest leverage, with net debt to EBITDA reducing from 1.1x to 0.6x. In spite of headwinds in debt markets we managed to secure a number of long-term credit lines with predominantely international banks for a total amount of USD 2 billion, which enabled us to refinance almost one third of our gross debt portfolio, extend our average debt maturity, while keeping the interst rate almost unchanged. Most importantly we fulfilled our promise to materially increase cash returns to our shareholders and paid over USD 3.3 billion of dividends during the last year, while dividend per share increased 10% to USD 20.7. We remain committed to pursuing further operational improvements in the year ahead and create more value for our shareholders."

Source – Strategic Research Institute

voda 1 april 2015 19:05

0

NLMK Group delivers on interim targets of its Strategy 2017

NLMK Group, the largest steel producer in Russia and a leading international steel company, hosts Capital Markets Day in London and announces progress on achieving its Strategy 2017 targets.

Presented to the investment community in February 2014, Strategy 2017 is centered on gaining leadership in operational efficiency, developing a world class resource base and achieving leading positions in strategic markets. Special emphasis is placed on industrial safety, sustainability and human capital development.

On track with delivering on strategy 2017 commitments;
In 2014, NLMK Group achieved about USD 400 m net gains (40% of the 2018 target), ahead of the plan. These gains include structural savings of USD 288 m coming from operational efficiency programs. The summary of the progress achieved in 2014 by key strategic objectives is provided below:

Leadership in operational efficiency;
1. Net gains in 2014 totaled USD 204 million of which USD 198 million resulting from operational efficiency initiatives World class resource base;

2. Total net gains were USD 97 million in 2014. Operational efficiency improvements in the upstream and mining divisions delivered structural savings of USD 90 million;

3. Construction of the pelletizing plant at Stoilensky entered an active stage. We expect to launch the plant in mid 2016;

4. Iron ore concentrate production at Stoilensky increased by 1 million tonne per annum YoY as a result of operational efficiency program with further 0.4 million tonne per annum of output targeted;

5. Iron ore concentrate capacity expansion scaled down: USD 570 million investment project to build a new 5 million tonne per annum beneficiation facility was replaced with debottlenecking initiatives adding 1.8 m tpa requiring only USD 120 million of capex;

6. PCI technology was rolled out and now covers a third of the Group’s blast furnace capacities or over 4 million tonne annual capacity Leading positions in strategic markets;

7. Net gains totaled USD 100 million in 2014;
8. Steel sales increased by 2% YoY to 15.1 million tonne driven by the ramp up of NLMK Kaluga and higher sales of NLMK USA;

9. Sales to the Russian market increased by 14% YoY to 6.6 million tonne and accounted for 43% of total sales vs 39% in 2013;

10. NLMK Europe Plate increased sales of niche plates by 40% to 0.2 million tonne. NLMK Europe Flat products grew sales to the automotive industry by 10% to 0.4 million tonne. Sales of flat steel at NLMK USA increased by 11% to 2 million tonne Leadership in sustainability and safety;

11. LTIFR at NLMK Russian assets declined by 36% YoY to 0.55, which is an industry best practice level;

12. Specific air emissions reduced by 7% YoY to 20.3 kilogram per tonne
13. Labor productivity grew 8% YoY across the Group.

Changing dividend policy on improved free cash flow availability to shareholders;
1. Significant increase in profitability on the back of structural gains from operational efficiency programs. EBITDA margin increased to 23% vs 14% in 2013;

2. NLMK completed deleveraging with net debt and EBITDA at the end of 2014 at 0.67x, below Strategy 2017 target of 1.0x;

3. Company has entered a less capital intensive stage of development. In 2014, capex declined by 26% YoY to USD 0.56 billion. Mid term average investment and maintenance capex is expected to total USD 0.55 billion;

4. In 2014, free cash flow amounted to USD 1,155 m. Higher profitability, lower leverage and decline in capex enabled NLMK to structurally increase free cash flow available to shareholders;

5. New dividend policy has been proposed by NLMK management to the company’s Board of Directors (approved by Strategy Committee of the Board). Dividends are proposed to be paid on a quarterly basis with the payout in the range of: o 50% of net income and 50% of free cash flow, if Net Debt and EBITDA is 1.0x or less; o 30% of net profit and 30% of free cash flow, if Net Debt and EBITDA exceeds 1.0x.

Mr Oleg Bagrin CEO of NLMK Group said that “NLMK pursues global industry leadership in efficiency and shareholders’ value creation. We have a clear strategy and will continue to deliver on our commitments made in early 2014, when the new phase of our strategy was announced. In 2014, we have already achieved tangible results, including delivery of 40% of total net gains target set out in Strategy 2017. Progress in delivering upon our strategic objectives allowed us to boost profitability of the business. Thanks to operational efficiency programs rolled out across all of our divisions, we were able to revise our investment plans by way of identifying low-capex high-efficiency projects, and bring our medium term annual capex target down from $900 m to $550 m, including maintenance capex.”

Mr Oleg Bagrin said that “An increase in cash flow driven by higher profitability and lower capex allowed NLMK to substantially reduce debt reaching Strategy 2017 leverage target already in 2014. In the coming years, we are well positioned to start returning capital to our shareholders. We have proposed to the Board of Directors to change the company’s dividend policy aiming at an increased payout, as well as higher visibility of future dividend payments. Given the quality of our assets, solid financial standing, leading profitability and best-in-class operating practices, we believe we have all levers in place to ensure positive free cash flow generation; and we remain committed to delivering strong and sustainable shareholder returns.”

Source – Strategic Research Institute

voda 1 april 2015 19:07

0

Iran plans to raise steel production by 55 million tonnes

Iran has planned to raise steel production to 55 million tonnes a year by 2025 in order to keep pace with its growing economy. Iran is the largest steelmaker in the Middle East and North Africa.

According to the Global Steel Association, Iran produced 2.27 million tonnes of steel in the first two months of this year, up 15.6% on the same period the year before.

Steel output by Iran totaled 16.33 million tonnes in 2014, securing the country’s place as the 15th largest producer in the world. Steel is a strategic commodity for the country of 75 million, which is also the Middle East’s biggest carmaker. It is fundamental to the Iranian society with its massive oil and gas industry, transportation network, water supply, urban centers and mammoth construction.

Iran’s steel imports, put around 10 million tonnes a year in some reports, roundly outweigh its exports. The steel sector in Iran is under growing threat of dumping by China, Russia and Turkey.

The government has imposed tariffs of 10% to 20% and cancelled foreign currency offers at preferential rates on imports in order to protect the sector. But the industry still faces enormous challenges to stay competitive. One drawback is the high cost of iron ore production in Iran compared with the outside world.

Mr Bahram Sobhani head of the Iranian Steel Manufacturers Association said that one key problem lies where the size of production units is concerned. It is unfathomable that instead of establishing units with a capacity above five million tons, we have built small and medium size plants.”

Iran’s biggest mill, also the Middle East’s largest, is Mobarakeh Steel Company which produces 7.2 million metric tonnes of steel per year. Most of Iran’s private steel plants, with a capacity under 100,000 tonnes, are scattered across the country.

Source – Customs Today

voda 1 april 2015 19:08

0

Armco Metals announces financial results for Q4 and FY 2014

Armco Metals Holdings Inc, a US based company that engages in the import, sale and distribution of metal ore and non ferrous metals in the People's Republic of China, recycles scrap metals used by steel mills in the production of recycled steel and provides sourcing and pricing services for various metals to its network of customers, announced its financial results for its Q4 and for the fiscal year ended December 31st 2014.

Q4 of 2014 Financial Results;
For the Q4 ended December 31st 2014, net revenue decreased 26% to USD 49.2 million due to a significant decrease in sales in our trading business which totaled USD 9.0 million as compared to USD 41.1 million in the same period in 2013. largely due to price decline and weak demand for metal ore. Revenues from our recycling business in the Q4 of 2014 increased to USD 40.2 million as compared to USD 25.1 million in the same period in 2013.Gross profit for the fourth quarter of 2014 was USD 4.2 million as compared to USD 2.2 million in the Q4 of 2013.

We recorded operating income of 2.9 million in the fourth quarter of 2014 as compared to operating income of USD 0.4 million in the fourth quarter of 2013. Our operations resulted in a net income of USD 1.4 million or USD 0.29 per diluted share in the Q4 of 2014 compared to net loss of (USD 0.4) million in the Q4 of 2013, or USD (0.10) per diluted share. Diluted loss per share was USD 0.39 and (USD 1.66) for the year ended December 31st 2014 and December 31st 2013, respectively.

Results for the Year Ended December 31st 2014;
Net revenues in 2014 was USD 124.2 million, a 3.5% decrease from USD 128.7 million in 2013. By business section, the net revenues from our metal recycling business significantly increased by USD 40.1 million, or by 62%, to USD 105.0 million, compared to 2013; our net revenues for our trading business decreased approximately 70.0% in 2014 to USD 19.2 million, compared to USD 63.8 million in 2013. The increases in recycling business sales are mainly attributable to the increase in the sale of billet and scrap steel, of which the former product is a new product we carry in 2014.

To manage market risk and in responding to the significant price decline and oversupply of metal ores, we significantly decreased our metal ores trading business activities resulted in sharp decline in trading business sales. Our recycling business sold approximately 193,106 metric tonnes scrap metals in 2014, increased 35,334 MT or 22.4%, compared to 2013. In 2014, our production increased by 26.7% to 182,776 MT from 144,239 MT in 2013.

Our recycling business accounted for approximately 85% of our total revenue and continued to exceed our trading business as the largest source of our net revenue. Gross profit for the full year 2014 was USD 14.5 million, an increase of 339% from USD 3.3 million for the year ended December 31st 2013. Gross margins significantly increased to 11.7% in 2014 compared to 3.0% in 2013, primarily due to the significantly increased margins on our sales of scrap metals in our recycling operations which we sorted out and produced high value of non ferrous scraps from the raw materials of scraps acquired at lower cost. Gross margins were also positively impacted by an inventory reserve of reversal of USD 0.5 million as result of the price recovered from the write off in the previous period.

Operating expenses of USD 6.0 million in 2014 slightly increased by USD 0.1 million, or 2% compared to 2013, primarily due to the increase in selling expense of USD 0.13 million and an increase in profession fee of USD 0.1 million. The increase was partially offset by the decrease of USD 0.15 million in operating cost of idle manufacturing facility as result of higher output at our facility. General and administrative expenses, one of our major operating costs, remained flat at USD 3.4 million compared to 2013.

Our net income in 2014 was USD 1.9 million, compared to net loss of USD 4.1 million in 2013. The significant improvement in profit is primarily due to the substantial increase in gross profit to USD 14.5 million with gross margin of 12% in 2014 from USD 3.3 million with a gross margin of 3% in 2013, partially offset by USD 0.1 million increase in total operating expenses and USD 2.9 million increase in total other expenses.

Mr Kexuan Yao chairman and CEO of China Armco said that “The company was able to turn around and post profits during this past year. 2014 was a milestone for the company as we achieved first positive annual financial result since our recycling facility putting into operation. While we suffered the effects of rapidly declining prices and weaken market demand, we were able to manage risk and make profits in 2014 by constantly improving operation efficiency, adjusting product line and developing business model in responding to market change. The recycling business continued to be our largest source of revenue and we continue to believe the metal recycling business will continue to be the major growth driver for our company."

Mr Yao further stated that "We intend to further our improvements in cost control, developing and streamlining our supply chain, and the establishment of long term strategic partnership with key clients. As we position the company for a cyclical recovery in the steel industry we will continue our efforts to obtain additional qualifications and licenses to increase our business, and build our brand in the industry. We have driven gross margin improvement significantly in a very challenging environment while improving operation efficiently and reducing costs significantly. We believe this will serve as a springboard for significant financial improvement when our end markets improve."

Source – Strategic Research Institute

Vertraagd	10 mei 2024 17:35
Koers	23,880
Verschil	+0,200 (+0,84%)
Hoog	24,320
Laag	23,870
Volume	2.942.344
Volume gemiddeld	2.533.911
Volume gisteren	1.871.161

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