Eurobench.com

voda 6 november 2017 20:21

0

Indian iron ore pellet makers seek total ban on high grade iron ore exports

Business Standard reported that flagging concerns on the rising trend in iron ore exports, Indian iron ore pellet manufacturers have called for a total ban on exports of high grade iron ore fines from the country in the interest of the local steel industry. They feel high grade iron ore is a scarce resource that needs to be conserved for value addition.

Pellet makers who are forced to operate at depleted capacity, are also pitching for 30 per cent export tax on lower grade fines (iron content of 45 to 58 per cent). The Union government has exempted export duty for low grade iron ore fines (iron content below 58 per cent) while continuing with the 30 per cent duty on high grade iron ore.

Federation of Indian Mineral Industries (Fimi) has been lobbying for a cut in export duty on higher grade iron ore. To study the possibility of rationalisation in export duty, the Union mines ministry has formed a committee.

But, Pellet Manufacturers Association of India (PMAI) is opposed to any move to prune or abolish export duty on iron ore. Deepak Bhatnagar, secretary general with the Pellet Manufacturers Association of India (PMAI), said “Iron ore is national wealth and needs to be preserved for the future especially when the country is eyeing 300 million tonnes steel capacity (by 2030-31). If there is glut of low grade iron ore fines, the same can be made available to pellet plants at a nominal cost. We feel that the cut off for export duty should be iron ore fines with 45 per cent instead of 58 per cent grade iron ore.”

Justifying the export duty demand for 45-58 per cent grade fines, he said, Institute for Minerals and Materials Technology (IMMT), Bhubaneswar is working on new technology that can beneficiate even 45 per cent grade iron ore fines.

Source : Business Standard

voda 6 november 2017 20:23

0

Scientists develop a fire-retardant coating for steel technology

An interdisciplinary team of scientists from Nanyang Technological University (NTU Singapore) and Singapore's industrial developer company JTC have developed a coating material called FiroShield, made from a combination of chemical additives (polymer-based synthetic resins and endothermic chemicals) that can protect steel against fire and corrosion. According to a press release by the institution, the material is more cost-effective while being less labor-intensive to apply, and with a minimum application of five coating layers, will give a steel structure an added two-hours worth of protection against collapsing in a fire, noted the same press release.

Assistant professor of NTU Singapore's school of material science and engineering Aravind Dasari in the release said that “In a fire, our coating forms a compact charred layer that acts as a protective barrier against the heat. While typical fire coatings will also form a charred layer, those are thick and foam like, which can fall off easily and leave the steel exposed to the fire. What we aimed at was an innovative coat that works differently from conventional intumescent coatings and can stick to the steel surface for as long as possible under high temperatures, and yet has durability and weather resistance under normal conditions without a need for a top coat of paint.”

FiroShield offers "assorted colors; pigments can be added to the mixture so it achieves the aesthetic function of normal paint." This allows paint manufacturers to use FiroShield in their products.

NTU Singapore's assistant professor Aravind Dasari putting his finger on a piece of plastic that is cool enough to touch, which was placed behind a steel plate coated with FiroShield and exposed to a flame over 900 degrees Celsius (1,652 degrees Fahrenheit)

Courtesy Nanyang Technological University NTU Singapore's assistant professor Aravind Dasari putting his finger on a piece of plastic that is cool enough to touch, which was placed behind a steel plate coated with FiroShield and exposed to a flame over 900 degrees Celsius (1,652 degrees Fahrenheit)

Led by Dasari and NTU Singapore's school of civil and environmental engineering professor Tan Kang Hai, the research was launched two years ago, when the team was examining possible solutions for protecting reinforced concrete against fire. FiroShield is set to be sent to the UK to acquire an industry certification, including "a load-bearing fire test" to be completed by April of next year. After acquiring the certification, "the new coating will be applied on steel structures within the upcoming JTC Logistics Hub," noted the press release.

Source : Architect Magazine

Bijlage:

voda 6 november 2017 20:26

0

Iron ore exports were the key driver of Australia's strong trade surplus in September

Business Insider reported that Australia recorded a AUD 1.745 billion trade surplus in seasonally adjusted terms in September, easily beating market expectations of AUD 1.2 billion. According to the Australian Bureau of Statistics, the previous month’s surplus was revised down to AUD 873 million from AUD 989 million. The Australian dollar initially rose to US77 cents following the data release, also supported by a sharp rise in new building approvals. A short time ago, the AUD had climbed to 0.7719 US cents.

In seasonally adjusted terms, total goods & services exports for the month were AUD 32.961 billion, while total imports were AUD 31.216 million. Total exports rose by 2.9% in September, while imports rose by just 0.2%.

September’s surplus was largely the result of an increase in goods exports, with the value of non-rural goods exports climbing by almost AUD 600 million in September in seasonally adjusted terms, a rise of 3%.

The gain in non-rural goods exports was comprised mostly of iron ore and other minerals, which climbed by 8% to a seasonally-adjusted total of AUD 584 million on higher volumes, offsetting a fall in iron ore prices in September.

Non-monetary gold exports rose by 17% in the month, representing an increase of AUD 217 million in seasonally adjusted terms. Combined with a AUD 65 million fall in non-monetary imports, that line item accounted for around half of the headline beat.

Source : Business Insider

voda 6 november 2017 20:27

0

FMG urged to reduce exports, raise iron grades

Financial Review reported that Fortescue Metals Group has been urged to consider reducing export volumes in a bid to boost its iron grades and received prices, as analysts predict a perfect storm of factors could reduce the miner to a loss-making position within two years. Evans & Partners analyst Mr Andrew Hines said life would get progressively tougher for Fortescue in coming years, as rising energy and currency costs combined with mine depletion and persistent pricing discounts.

The latter factor has dominated debate around Fortescue in 2017, as the discount applied to its product has widened from an average of 12% in fiscal 2016 to 23% in fiscal 2017.

The company warned last week that the discount would average between 25% and 30% over the current financial year.

Mr Hines said it could be time for Fortescue to reverse the operating strategy that allowed it to reduce its cost of production from north of $US50 per tonne to barely USD 12 per tonne over the past five years.

A key part of that dramatic cost reduction was the blending of low grade and high grade iron ore, which allowed the company to spend less time and money moving waste, but also lowered the average iron grades in its final product.

Mr Hines in a note to clients said that "Five years ago Fortescue deliberately lowered the average grade of its product by lowering the cut-off grade at its Cloudbreak operation to allow it to reduce the strip ratio and therefore production costs. A key question is what Fortescue will do once the Firetail mine begins to deplete from 2020. It will need to find a new source of ore to blend with, or cut-off grades will rise again.”

He said that "In our view, Fortescue should consider reversing this strategy and increasing its cut-off grade to ship higher grade ore. The downside is that production costs would rise. Fortescue has to optimise between volume, price discounts and costs. It may be that shipping less ore but at a higher grade would maximise Fortescue's margins."

Evans & Partners predicts ores with 62 per cent iron, the industry benchmark, will average USD 55 per tonne in fiscal 2018 including the cost of freight to China, before dropping to USD 45 per tonne and $US47 per tonne in fiscal 2019 and fiscal 2020, respectively.

The firm also expects shipping and energy costs to rise, along with capital spending requirements as Fortescue is forced to replace depleted mines.

Mr Hines said that perfect storm of factors could reduce Fortescue, which reported a USD 2.1 billion ($2.7 billion) net profit in August, to a narrow loss in fiscal 2019. He said that "On our projections, Fortescue's earnings are likely to decline over the next two years as declining prices and rising costs squeeze profitability. We model Fortescue reporting small losses in FY19 and FY20; essentially break-even. Current conditions are as good as it is going to get for Fortescue. We think Fortescue will face a number of headwinds over the next few years."

Source : Financial Review

voda 6 november 2017 20:28

0

Ms Gina Rinehart sets aside AUD 900 million family dispute

The West reported that Ms Gina Rinehart’s Hancock Prospecting has paid out more than AUD 337 million in dividends and has set aside another AUD 900 million plus as the billionaire tries to resolve a row with her two eldest children. The rush of cash comes as Hancock Prospecting’s new Roy Hill mine has joined its established Hope Downs operation generating bumper profits.

Ms Rinehart’s eldest children John Hancock and Bianca Rinehart are enmeshed in a long-running row over a quarter of the empire left by iron ore pioneer Lang Hancock.

The Full Court of the Federal Court last month upheld an appeal by Ms Rinehart for their row to be resolved by private arbitration under NSW laws.

The Hancock Prospecting annual report released yesterday shows the company had put aside AUD 830 million of its AUD 3.9 billion-plus of cash holdings for the payment of dividends through the various family companies and trusts.

It put aside another AUD 90 million-plus in the September quarter for family payouts.

It comes after AUD 337 million of dividends were paid out in the 2016-17 financial year and AUD 185 million in 2015-16.

Hancock Prospecting said in accounts notes that the company had paid AUD 643 million of dividends since June 2015.

It estimated that about AUD 151 million had flowed to the trustee and beneficiaries of the Hope Margaret Hancock Trust, which is at the centre of the legal row between Mrs Rinehart and her two eldest children.

The statement said the payments were being made despite restrictions under financing arrangements for the AUD 10 billion Roy Hill iron ore development.

Source : The West

Bijlage:

voda 7 november 2017 16:48

1

India’s largest CDQ facility at Tata Steel Kalinganagar

Financial Express reported that TATA Steel has established India’s largest Coke Dry Quenching (CDQ) facility, capable of handling 200 metric tonnes per hour, at its state-of-the-art steel plant at Kalinganagar Industrial Complex in Jajpur district of Odisha.

CDQ is a heat recovery system to cool hot coke from coke ovens. It is one of the best energy-efficient and environment friendly facility in steel production where hot coke removed from coke ovens at a temperature of around 1,000 degree Celsius is cooled and kept dry with inert gas. The resulting steam produced in a waste heat recovery boiler is used to generate electricity, the statement said. The facility is part of the continuous journey towards improving productivity, energy efficiency and environmental performance.

As the sensible heat, recovered by heat transfer in the cooling chamber, is utilized as a heat source for steam generation, electricity generated by CDQ is clean and green energy. It also cuts down dependence on natural resources for energy generation thereby increasing the resource efficiency considerably, through secondary resource management and technology infusion, the statement said.
In addition, compared to the conventional wet quenching, CDQ brings about advantages such as the reduction in dust emission and improvement of coke quality. This environment-friendly technology would help in abating climate change by reduction in the emission of carbon dioxide to the extent of 0.11-0.14 tonnes per tonne of coke and reduction in dust emission to the tune of 300-400 grams per tonne of coke. The other advantages include saving a significant amount of water which is also becoming a scarce resource.

Source : Financial Express

voda 7 november 2017 16:49

1

Many injured in Uttarakhand factory after molten iron fell on workers

Indian Express reported that over a dozen labourers were injured in a factory here in Uttarakhand after part of a crane broke and molten iron ore fell on workers there .As per report two of the injured in the late Sunday night incident at the Rana Bar factory in Landhaura area, are said to be critical and are "battling for life".

A case has been registered against the factory management for negligence and obstructing government work as they did not allow the police to enter the premises and delayed rescue and relief operations.

There was also a blast as the molten iron ore fell on a cylinder. A generator too caught fire, adding to the blaze.

Sub-Inspector Pramod Kumar said that the security guards did not let the police in for considerable amount of time. It was only after additional reinforcements were called, that they were able to get inside and rescue the workers.

A factory official has been taken into custody and a probe is on.

The injured have been identified as Sattar, Waseem, Khushnaseeb, Inam, Ankit, Sachin and Rajiv.

Source : Indian Express

voda 7 november 2017 16:51

1

India’s steel & rail ministry over global rail tender – Report

Reuters reported that India’s steel and rail ministries are at loggerheads over the state run network’s proposal to buy rails from overseas, a move that would undermine Prime Minister Narendra Modi’s drive to build key infrastructure in India. In a meeting on Friday, Steel Ministry officials asked the railways to abide by procurement rules that require steel for major infrastructure projects to come from domestic producers, three people who attended the meeting said.

Indian Railways issued a tender seeking 717,000 tonnes of steel rails on Oct. 18, which was the first time the state-run railroad operator sought overseas rails. The tender could be worth an estimated 30 billion rupees ($464 million) for global steel majors. That amount will make up SAIL’s shortfall for the next two financial years.

The clash highlights the dilemma the government faces as it tries to promote local production through the “Make in India” campaign at the same time it faces resistance from some state buyers who need to procure goods as quickly and cheaply as possible.

For the financial year for 2017/18, SAIL is expected to supply 920,000 tonnes, only 65 percent of the target, according to a letter sent by Indian Railways to the Steel Ministry dated Oct. 18 and reviewed by Reuters. In 2018/19, SAIL is expected to supply 1.3 million tonnes, falling short of 1.5 million tonnes sought by the railways, the letter showed.

Source : Reuters

voda 7 november 2017 16:55

0

Moody's revises outlook on Tata Steel and Tata Steel UK

Business Standard reported that Moody's Investors Service has changed the ratings outlook on Tata Steel and Tata Steel UK Holdings (TSUKH) to stable from negative. Moody's has also affirmed Tata Steel's Ba3 corporate family rating (CFR) and TSUKH's B3 CFR. At the same time, Moody's has withdrawn the B3-PD probability of default rating for TSUKH. Mr Kaustubh Chaubal a Moody's Vice President and Senior Analyst said that "The change in the ratings outlook to stable from negative reflects our expectation that the benign operating environment and recovery in the financial performance of TSUKH and Tata Steel over the last few quarters will continue over a longer term, leading to a sustained improvement in its credit metrics.”

Tata Steel's consolidated adjusted leverage as indicated by adjusted debt/reported EBITDA stood at an estimated 4.7x at end-September 2017, down from 8.9x in March 2016.

Strong growth prospects in particular, in its key operating markets of India, Europe and South East Asia with apparent steel consumption (production + imports -- exports) slated to grow, amid capacity removals in China, augur well for Tata Steel.

Moody's expects China's steel production capacity to continue to decline with the government's implementation of supply-side reforms and environmental protection measures that have forced the closure of inefficient mills and prompted consolidation in the industry, leading to a decline in Chinese exports and supporting regional steel prices.

As for demand, Moody's expects India's steel consumption to grow in the mid-single digits in 2017 and 2018, on the back of economic activity with expected GDP growth in the 7.3% - 7.5% area. Moreover, implementation of the goods and services tax (GST) in July will help the organized sector, and strong brand recall players, such as Tata Steel, will be major beneficiaries.

In Europe by far Tata Steel's second largest market by volume with expected annual shipments of 10 million tonnes (mt) in the fiscal year ending March 2018 (FY2018) sustained demand from key user industries, such as automotive, construction and capital goods, will lead apparent steel consumption to grow by an estimated 2% in calendar 2017 and by 1.5% in 2018.

As a result, consolidated EBITDA/tonne will average INR7,500 to INR 7,900 in FY2018, higher than the stable outlook trigger of INR7,000. Moreover with half the sales volumes from the higher profitable Tata Steel India business that generates EBITDA/tonne in the INR10,000 to INR12,000 range, up from ~ 40% in FY2016 will drive a meaningful improvement in consolidated earnings. Absent any large capital expenditure and investment needs, free cash flow generation will improve and allow deleveraging.

Following Tata Steel's signing of the memorandum of understanding with thyssenkrupp AG (Ba2 developing) in September, Moody's expects Tata Steel to enter into a definitive agreement for a joint venture (JV) of its European business by March 2018 and the consummation of the JV by March 2019. The transaction is at an early stage with signing and possible closing subject to due diligence and approvals from respective shareholders and antitrust authorities.

The change in the ratings outlook to stable rests on Moody's view that Tata Steel will maintain a cautious approach when evaluating expansions or potential acquisitions. Large debt-funded investments, if any, that slow the pace of leverage correction could weigh on the ratings. That said, given the significant improvement in operating and financial metrics, there is sufficient headroom under the ratings.

Source : Business Standard

voda 7 november 2017 16:56

1

Kobe steel scandal - Executives to decide whether to resign after external probe - Report

Reuters reported that Kobe Steel executives, including President Hiroya Kawasaki, will decide whether to resign to take responsibility for a cheating scandal after a report from independent investigators due by year-end.

The company also plans to release an internal report on the falsification of product specifications around Friday, said one of the sources, who has been briefed on the matter.

The other source is a senior executive at Kobe Steel. Both requested anonymity because decisions on the future of the executives and a firm date for the release of the report have been not been finalised.

The company was ordered by Japan's Ministry of Economy, Trade and Industry last month to provide a detailed explanation of the data cheating and steps to prevent future abuses by around Nov 12.

It later appointed a team of outside investigators, who are due to report to management by the end of the year.

A spokesman told Reuters that "We received an instruction from METI on Oct 12 to take steps to find the cause of the problem and craft preventive measures within a month and we are working toward that.”

The spokesman said that "We can't comment on whether we will announce this on the 10th and we can't comment on the issue of management responsibility.”

Kobe, which is now the subject of a US Justice Department inquiry, has had a Japanese government-sanctioned seal of quality revoked on some of its products and lost customers.

Source : Reuters

voda 7 november 2017 16:56

1

Tata Steel to stop steel rebar theft

PTI reported that in view of incidents related to pilferage of Tata Steel products, the crime and intelligence team of the company is taking safeguard measures to protect the brand. A case in point is the spate of thefts of Tata Steel rebars, a Tata Steel release said. According to estimates, each month 2,000 ton of rebars worth INR 11 crore of the steel major and other steel companies, are stolen en route to Ranchi, the release said.

Truck drivers and godown owners allegedly collude for stealing such company property. These rebars are sold by the godown owners and in this way, they evade GST and other taxes, besides abetting organised theft, it alleged.

To stop this illegal practice, Tata Steel has taken the help of the district police and other government agencies. In the last few days, the district police has raided three godowns in the areas of Namkum, Sadar police station and other areas, and recovered 7.6 ton of stolen Tata Steel rebars.

The godown manager concerned and the truck drivers have been arrested after an FIR was lodged, the release said, adding, such raids would continue by the police to bring the criminals to justice.

Source : PTI

voda 7 november 2017 17:01

1

Auto sector to drive continuing aluminium demand - Novelis

Reuters quoted leading producer Novelis as saying that global demand for rolled aluminium products is expected to remain strong in next year thanks largely to the automotive sector. The trend towards electric cars is also likely to increase the aluminium content of vehicles as carmakers seek to maximise battery range, said Mr Emilio Braghi, senior vice president and Europe president at Novelis, the world's largest maker of rolled aluminium products.

Mr Braghi said in an LME Week interview "We expect our auto shipments to continue to grow as customer demand remains strong and current demand outstrips supply. In total our automotive sheet shipments were up 16 percent in the first quarter of our fiscal year 2018."

He said that "Sales of new vehicle models containing Novelis aluminium, including the Ford F-150 pick-up truck, have been very strong. In North America, production of the new 2017 Ford Super Duty series of trucks was ramped up successfully."

United States-based Novelis delivered 785,000 tonnes of rolled products worldwide in its financial first quarter, up 4 percent year on year, including the 16 percent rise in automotive deliveries.

In Europe, it has production and recycling operations in Germany, Italy, Britain, France and Switzerland.

In 2014 Novelis opened a $258 million aluminium recycling plant in Germany to produce an annual 400,000 tonnes of aluminium from scrap. In 2015 an additional production line was opened in Germany, producing up to 240,000 tonnes of aluminium sheet a year for the automotive industry.

Mr Braghi said that "Our additional capacity in Germany is poised to meet increasing demand from Jaguar Land Rover following the rapid growth in sales of new aluminium-intensive vehicles, including the new F-PACE sports utility vehicle. In China, increasing local demand for customers like Chery JLR and FAW-VW will drive shipment growth over the next several quarters out of our facility in Changzhou."

Novelis, a unit of India's Hindalco Industries, expects electro-mobility to create more demand.

Source : Reuters

voda 7 november 2017 17:11

1

Iron ore diversification to boost Afrimat revenue 50%

IOL CO reported that the expansion and diversification by Afrimat into iron ore mining has the potential to boost the revenue of the listed open pit mining company and supplier of industrial minerals, commodities and construction materials by between 40% and 50%.

Mr Andries van Heerden chief executive of Afrimat, confirmed that Afrimat had concluded a four year agreement to provide 1million tons of iron ore to the Chinese market through a South African based exporter.

This follows Afrimat in October last year agreeing to acquire 60% of Diro Manganese and Diro Iron Ore near Sishen in the Northern Cape after these companies were placed in formal business rescue and subsequently acquired the remaining 40%.

The total of the purchase price was R276 million.

Mr Van Heerden said the company spent more than R300 million in the six months to August on legal costs, maintenance costs at the mine and on staff before it could start producing iron ore.

He said that production started in July and was being ramped up, with the first cash from the sale of iron ore received in September.

He said that “We are still in the production ramp-up phase and will only be at full production in March next year.”

Mr Van Heerden said the first phase of the project was to get to the production of 1million tons a year, but the group always had the ambition to do more.

He said Afrimat was looking at more acquisitions, particularly as its mine had a 10-year life at the production rate they were targeting. He added that “So we are working on expanding that. It will come from the Northern Cape.”

Mr Van Heerden said Afrimat was exporting very high quality iron ore that was sought after and attracted a price premium, which had enabled them to already re-employ 85 former employees of the mine who were granted severance packages.

He said the global iron ore market was massive and Afrimat’s portion of that was extremely small “to be insignificant in the bigger scheme of things” but 1million tons a year was extremely significant for the group.

Source : IOL CO

voda 7 november 2017 17:12

1

Mining scam - High Court shoots down iron ore company plea

Bangalore Mirror reported that in what could be called a strange request, ILC Industries, one of the companies embroiled in the infamous iron ore scam of Ballari, has approached the high court, seeking direction to the "monitoring committee", formed by the Supreme Court, to sell the iron ore lying in the company's stock. The high court, however, said that it was for the Supreme Court to take any such decision and refused to entertain the plea.

ILC was one of the companies allegedly involved in the illegal iron ore export scam. Its director, K Somasekhar, was one of those arrested in the early days of the scam. ICL, in its petition before the HC, contended that the SC had in April 2012 directed that the iron more mineral stocked in its properties should be sold. It has constituted a monitoring committee to look after the sale.

Citing the SC order, the petition said that "Sale of iron ore lying at various cancelled stockyards is permitted through e-auction by Monitoring Committee with the
condition that sale proceeds not found to be involved in any illegality will be reimbursed to the respective stockyards."

Source : Bangalore Mirror

voda 7 november 2017 17:12

1

Singapore SGX Oct iron ore lump contracts volume up 30 fold from Jan

Platts reported that iron ore lump premium contracts in October on the Singapore Exchange saw traded volume at 23,210 lots, or 2,321,000 tonne, settled against the Platts spot lump premium assessment, close to a 30-fold surge since the start of the year. The traded volume stood at merely 80,000 tonne in January.

The traded volume of lump premium contracts has increased substantially since the start of August, when Platts increased the frequency of the physical lump assessment from weekly to daily, with traded volume rising 300% from July.

Trade was concentrated in the prompter month strips, with volume for the November and December strips having risen to 1,550 lots and 4,100 lots respectively on October 31, compared with zero at the start of the month.

However, SGX’s lump premium contract volume fell 34% on the month from the all-time record high in September at 3,505,000 tonne.

Mills in northern China have been facing sintering restrictions and output cuts ahead of the winter season, when air quality tends to deteriorate. As a result, raw materials demand, including iron ore lump, has thinned considerably in recent weeks.

An East China trader said that “There is less need to hedge when premium is at this level because it’s likely to sustain given seasonal demand.”

On the back of lackluster demand, Platts spot lump premium assessment fell more than 50% from a historical high of $0.4595/dmtu on September 18 to USD 0.2035/dmtu on Wednesday.

October open interest was 2,795,300 mt on SGX’s lump premium contract, down 1.52% on the month.

Meanwhile, SGX’s daily iron ore fines contract traded volume averaged 50,756 lots in October, down 21% from September.

SGX iron ore fines contracts are settled against TSI’s Iron Ore CFR China index, a unit of S&P Global Platts.

Source : Platts

voda 7 november 2017 17:14

1

Paradise Paper - Big miners avoid paying taxes

ABC Net reported that the Australian Tax Office has taken action against 19 multinational companies as it unpicks a scheme capable of pushing millions of tax dollars offshore. The ATO is also cracking down on high-profile Australian advisory firms and an international web of offshore law firms suspected of promoting tax avoidance schemes through tax havens.

The ATO investigations have come to light during a Four Corners project in partnership with the International Consortium of Investigative Journalists.

The largest leak of documents in history has exposed the tax secrets of a host of large multinational companies.

The Paradise Papers leak has uncovered confidential emails, board minutes and tax-structuring plans originating from global offshore law firm Appleby, Singaporean firm Asiaciti Trust and 19 corporate registries in tax havens, obtained by German newspaper Suddeutsche Zeitung.

The documents show how major multinationals have used the tax haven of Bermuda to structure their Australian debts and employ complicated financing schemes for their Australian subsidiaries, with the suspected goal of dramatically cutting their Australian tax bill.

ATO deputy commissioner Mark Konza said investigations had led to 19 companies that appear to be exploiting a scheme known as cross-currency interest rate swaps. He said that “It’s a two-step scheme, it’s difficult to detect, and it took us a little while to detect it, but now we have we are following it up, we’re making a lot of inquiries about it.”

The swaps can be perfectly valid they can swap, for example, a loan in $US to a loan in $A, with each side effectively swapping the risks and interest rate of the original currency for the risks and interest rate of the swap currency.

Tax experts said that when the swaps are done between a parent and its subsidiary they can sometimes be used by multinationals to avoid tax.

A total of 19 companies have faced ATO action over the scheme, with 13 of them still under review.

On top of the targeted companies, the ATO has issued legally-binding formal notices to advisory firms, asking them whether they helped implement the swaps or other tax-driven schemes.

Four Corners can reveal 21 formal notices have been issued to accountants and other so-called “intermediary” firms in Australia, with further action expected.

And Mr Konza said the ATO was stretching its net offshore, saying international tax regulators wanted to disrupt the operations of offshore law firms in tax havens. He also said the ATO wanted the Paradise Papers data to begin “analysing the Australian implications”.

Source : ABC Net

Bijlage:

voda 8 november 2017 18:10

0

Stabiele winst Aperam

Meer winst verwacht voor vierde kwartaal.

(ABM FN-Dow Jones) Aperam heeft in het derde kwartaal van 2017 ruwweg evenveel winst behaald als een jaar eerder en rekent voor de laatste drie maanden van het jaar op een verbetering. Dit maakte de producent van roestvast staal woensdag nabeurs bekend.

Het bedrijfsresultaat (EBITDA) kwam uit op 125 miljoen dollar. In het derde kwartaal van 2016 was dit 124 miljoen dollar en in het tweede kwartaal van dit jaar 169 miljoen dollar.

Aperam heeft in juli met de presentatie van de halfjaarcijfers gezegd voorzichtig te zijn over het derde kwartaal "vanwege de sterke seizoensgebonden effecten en de recente gedaalde grondstofprijzen". Gedurende de zomermaanden hebben staalbedrijven vaak te maken met een lagere activiteit.

Prijzen voor ferrochroom daalden in het kwartaal, wat leidde tot afnemende voorraden, zei Aperam.

Analisten van Goldman Sachs hadden voor het afgelopen kwartaal gerekend op een bedrijfsresultaat van 123 miljoen dollar.

De nettowinst steeg op jaarbasis van 54 miljoen naar 62 miljoen dollar.

Aperam verscheepte in het kwartaal 477.000 ton staal. Een jaar terug was dit 457.000 ton staal. De omzet steeg van 1.015 miljoen naar 1.204 miljoen dollar.

Voor het vierde kwartaal verwacht Aperam dat het bedrijfsresultaat zal toenemen ten opzichte van het afgelopen kwartaal, terwijl de nettoschuld zal dalen.

Eind september bedroeg de schuldenlast 116 miljoen dollar. Ultimo juni was dit nog 235 miljoen dollar.

Het aandeel Aperam sloot woensdag 0,8 procent hoger op 46,47 euro.

Door: ABM Financial News.

info@abmfn.nl

Redactie: +31(0)20 26 28 999

Copyright ABM Financial News. All rights reserved

(END) Dow Jones Newswires

voda 8 november 2017 20:49

0

Growth imperatives in steel sector need to be addressed quickly - Mr Sushim Banerjee

Mr Sushim Banerjee DG of Institute of Steel Growth and Development in his personal capacity wrote for Financial Express that belying the earlier apprehension, the alloy and SS industry has started looking up. A part of it may be due to a mid-year revision of the availability figures in the official statistics that has made the finished steel availability in this segment to grow by 15.5% in October 2017 itself and by 14.5% during the first 7 months of the current fiscal. As a result, the apparent steel consumption in the country is maintaining its average growth rate of 4.5% in April-October period. Whatever may be the explanation, it looks pretty odd that during the last month, while consumption of non-alloy steel grew by 3.7% only, the alloy and SS consumption went up by a hefty 22.1%. Only 2 or 3 months earlier, the official statistics exhibited a negative growth in alloy and SS sector that pulled down the growth in total steel consumption in the country. The much improved positive growth in steel consumption in alloy and SS segment needs to be explained in terms of growth in different related consuming sectors. Other than utensil sector, the other sectors, namely ABC segment is common to both varieties of steel and therefore, the vast differentials in the growth rates of alloy and non-alloy sectors need a little more elaboration.

On the other hand, this anomaly in a particular month is inevitable if the revision of the figures takes place at a specific point and not spread out over a few months’ period to normalise the variations.

In the recently released Short Range cure Outlook by WSA, India has been projected to consume 87.1 million tonne in 2017 at an annual average rate of 4.3%. The ongoing rate has already exceeded the projected level. As the official data for the month gets revised after a gap of one or two months, it is expected that steel consumption rate in the country would be able to achieve a 6% growth rate to reach 89.1 million tonne.

As steel consumption in the country is to reach around 230 million tonne by 2030-31 as indicated in NSP, it implies that consumption needs to grow at a compound annual growth rate of 7.6% in the remaining 13 years which looks reasonable. The crude steel production growth has already reached 4.7% growth over last year. In the remaining months the brown field capacities that have been installed in the past few months by SAIL, JSW and TSL would come into stream and with higher capacity utilisation in the existing mills to take care of rising market demand in the coming months from Railways, NHAI, Bharatmala, real estate, engineering equipment, automobile, among others, the crude steel production growth is likely to reach 6.5-7% to reach 104 MT by the end of the year.

The capacity augmentation growth from the current level of 126 million tonne to 300 million tonne by 2030-31 implies an annual average growth rate of 6.9% in the next 13 years. It is to be appreciated that if the market size in India expands at a 7.6% CAGR in the next 13 years, the country would prefer to generate that much quantity of steel to cater to the demand and looking from this angle, the prospective investors would be keen to invest in creating green field expansion for the steel sector.

In this otherwise near normal scenario for the steel sector in India, two issues need to be addressed adequately. As the fresh capacity creation requires an astronomical volume of fund to be made available mostly through banks and lending agencies including the FDIs, the credit worthiness of the sector is to be the first parameter. But for this to happen, there has to be an enabling business scenario in the country that would facilitate the flow of investment. And if the processes, procedures and regulations of conducting the business are simplified and made user friendly, it has the capability of improving the business outlook significantly.

It is in this context that the recently published report on Doing Business by the World Bank that has placed India 30 notches higher at 100 from 130 rank in 2017 has displayed the predominant role that various economic reforms undertaken by the government can play in promoting investment in a sector that needs it so badly. Although Make in India, affordable housing, massive activities in improving the road and rail connectivity, smart cities, uniform Goods and Service Tax, direct benefits of economic growth to the poor people without intermediaries are contributing to overall improvement in the business environment, in a few major components of business index, namely, starting a business, registering property, dealing with construction permits, enforcing contracts, registering property , trading across borders, among others, India needs a major push to make the country more attractive destination for investment and future growth.

Source : Financial Express

voda 8 november 2017 20:53

0

Steel of West Virginia using robots to assists production

theet.com reported that Mr Tim Duke president and CEO of Steel of West Virginia said that “We’ve been using robots for fixed-point welding for years.” What’s different now, he explains, is that the plant has installed a new generation of sophisticated robots designed to assist in the production of truck trailer cross members a part Steel of West Virginia manufactures millions of every year.

Mr Duke said that “When they’re completed some cross members are galvanized, and it’s great. We now have that facility down at Wurtland. But the majority of them are wax coated. Why wax them? Think about it. Those cross members are underneath the truck where rocks come up and hit them. A hard coating, an enamel coating, would chip. A wax coating self heals. So we have a wax coating line. We’ve had it for decades and probably put close to 55 million cross members through there.”

Until now the cross members had to be moved on and off the line by hand. Now the robots have taken over that task.

Mr Duke said that “We’ve had a team working on this for five years and have developed robots that can load and unload the cross members at a significantly higher and safer rate. During this five years, the cost of the robots has fallen dramatically and the software to operate them has become much more user friendly.”

Mr Duke credits Assistant Plant Engineer Roger E. Hutchinson, along with Scott Boggs, superintendent of fabrication, and Keith Perry, electrical technician, with figuring out how to put the robots to work at the Huntington plant.

Mr Duke said that he’s also excited about another new development, one involving Steel Ventures Inc, an affiliate of Steel of West Virginia. The Kentucky affiliate has opened a USD 16 million, state-of-the-art galvanizing facility in Wurtland, Ky. It will allow the company to coat a variety of products including truck trailer cross members, I-beams, guardrail posts, complex fabricated assemblies and parts.

The plant will receive steel from Steel of West Virginia’s Huntington facility, as well as other businesses and plants in the surrounding region.

He said that “What that means is that this plant here will have more work. Until now we had to contract out the work to galvanizers across the United States and the logistics of that were unbelievable. Now the work can be done at Wurtland.”

Steel of West Virginia is what the steel industry calls a “mini-mill.”

Mini-mills use electric arc furnaces to produce recycled steel from scrap metal that otherwise would end up a landfill somewhere. The steel is then fabricated into beams, channels and other specially designed sections.

In addition to truck trailer cross members, the plant produces a wide variety of specialty shapes used in a variety of industries. Included are mast sections and hanger bars for forklifts; frame sections in off-highway equipment; structural beams for guardrail posts, in solar farms, and for recreational vehicles; light rail applications (crane rail and mine rail), and bulb flats used as hull stiffeners in shipbuilding.

The company has 525 employees. Mr Duke said that “We’re not actively recruiting now. But we’re always on the lookout for skilled electrical technicians, industrial technicians and millwrights positions that can be hard to fill. West Virginia clearly needs to establish better skill training programs for the state’s workforce.”

Source : Theet.com

Bijlage:

voda 8 november 2017 21:00

0

This Week's Raw Steel Production

In the week ending on November 4, 2017, domestic raw steel production was 1,715,000 net tons while the capability utilization rate was 73.6 percent. Production was 1,573,000 net tons in the week ending November 4, 2016 while the capability utilization then was 68.7 percent. The current week production represents a 9.0 percent increase from the same period in the previous year.

Production for the week ending November 4, 2017 is down 1.4 percent from the previous week ending October 28, 2017 when production was 1,739,000 net tons and the rate of capability utilization was 74.6 percent.

Adjusted year-to-date production through November 4, 2017 was 76,474,000 net tons, at a capability utilization rate of 74.6 percent. That is up 3.9 percent from the 73,583,000 net tons during the same period last year, when the capability utilization rate was 71.1 percent.

Broken down by districts, here's production for the week ending November 4, 2017 in thousands of net tons: North East: 187; Great Lakes: 642; Midwest: 159; Southern: 653 and Western: 74 for a total of 1715.

The Raw Steel production tonnage provided in this report is estimated. The figures are compiled from weekly production tonnage provided from 50% of the domestic producers combined with monthly production data for the remainder.

Therefore, this report should be used primarily to assess production trends. The AISI production report "AIS 7", published monthly and available by subscription, provides a more detailed summary of steel production based on data supplied by companies representing 75% of U.S. production capacity.

Note: Capability for the Fourth Quarter 2017 is approximately 30.6 million tons compared to 30.7 million tons for the same period last year and 30.6 million tons for the Third Quarter of 2017.

www.steel.org/about-aisi/statistics.aspx

Vertraagd	6 jun 2024 17:26
Koers	23,500
Verschil	+0,140 (+0,60%)
Hoog	23,510
Laag	23,120
Volume	1.723.789
Volume gemiddeld	2.672.088
Volume gisteren	4.384.655

03 jun	Video: AEX richting 1.000 punten en S...	1
22 mei	Mondiale staalproductie daalt opnieuw
02 mei	Beursblik: resultaten ArcelorMittal b...	1
02 mei	AEX gaat hogere opening tegemoet, ter...	4
02 mei	Meer omzet en hoger resultaat bij Arc...
01 mei	Lagere winst ArcelorMittal verwacht
23 apr	Mondiale staalproductie daalt toch weer
16 apr	Deutsche Bank haalt ArcelorMittal van...	1
12 apr	Video: cyclische aandelen bieden kansen
09 apr	World Steel Organisation ziet vraag n...

Arcelor Mittal « Terug naar discussie overzicht

Nieuws en info hier plaatsen (deel 4)

Meedoen aan de discussie?

Direct naar Forum

Detail

ArcelorMittal nieuws