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Delong Holdings sets up Indonesian steel joint venture

Reuters reported that Chinese steelmaker Delong Holdings has set up a steel manufacturing joint venture in Indonesia with Indonesia Morowali Industrial Park and Shanghai Decent Investment Group.

The venture, named Dexin Steel Indonesia, will have registered share capital of USD 150 million, said Delong, which flagged its intention to set up the business in June. The move marks a first foray into Indonesia for Delong, which has steelmaking facilities in China and Thailand, as well as trading operations in Singapore.

The Indonesian venture will principally be engaged in the business of manufacture and sale of steel bar, wire and slab. It added that total initial investment would be about USD 950 million, 70% of which would be funded through bank financing.

Delong's subsidiary, Delong Steel Singapore Projects, will have a 45% stake in the venture, with Shanghai Decent owning 43% and Morowali 12%, according to a Delong statement issued on Friday.

It added that the establishment of the business is not expected to have any material impact on Delong Holdings' tangible assets or earnings this calendar year.

Source : Reuters
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Vedanta misses bidding for Electrosteel due to delayed EoI - Report

Business Standard reported that Vedanta is looking to up its ante in the battle for stressed steel assets, albeit a little late. The natural resources conglomerate had submitted an expression of interest for Electrosteel Steels. However, according to sources the EoI came 10 days after the last date of submission, which was October 9. The sources said that “The EoI is not being accepted.”

They added that the qualified bidders for Electrosteel Steels are Srei Infrastructure Finance, Tata Steel, Mesco Steel, Edelweiss, Avalokiteshvar Valinv Ltd and Electrosteel Castings.

Technically, however, it would be possible for Vedanta to align with any of the qualified bidders.

Electrosteel has a planned capacity of 2.51 million tonnes and has commissioned 1.5 million tonne. It was one of the 12 assets recommended by the Reserve Bank of India for insolvency.

Source : Business Standard
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Damaged KK railway line jitters Rashtriya Ispat Nigam

Indian Express reported that after the Koraput- Kothavalasa- Kirandul railway line, which was badly damaged in the recent rains, was closed, the slow pace of the repair works is giving jitters to the Rashtriya Ispat Nigam Ltd. The closure of the railway tracks is affecting the RINL, the corporate entity of Vizag Steel Plant, as it is heavily dependant on the line for shifting of iron ore from the Bailadila mines in Dantewada district of Chhattisgarh to the plant.

Though the National Mineral Development Corporation which is responsible for ensuring sufficient supplies of iron ore to the RINL has made alternative arrangements by sending two or three rakes (one rake contains 54 wagons) through alternative routes, the RINL sources say that the iron ore stock at the steel plant is rapidly declining.

In the regular days, the NMDC also sends five to six rakes to the RINL, depending on the availability of rakes. As a practice, the RINL maintains a stock of iron ore up to six lakh tonnes which can feed to its demand for a month. With the less supply now, the stocks have decreased and the officials say that the available iron ore is sufficient for only 10 days. The RINL authorities are now eagerly waiting for the early completion of the KK line repairs.

The 80-metre railway bridge near Bora Caves on the KK line was badly damaged on October 6 due to landslides triggered by rain, bringing the train services to a grinding halt. After an inspection by the experts from the Research Design and Standards Organisation (RDSO), Waltair DRM MS Mathur said that the works would be completed by December 12.

Meanwhile, the NDMC has arranged to shift iron ore through Koraput- Rayagada (R-V Line) which is a non-electrified one with meter gauge track. It is not suitable for carrying heavy load goods trains and it will take longer transportation time. Though there is no emergency situation at present, the RINL authorities want the K-K line track repair works expedited.

The VSP has two blast furnaces Godavari and Krishn and the third one was added as part of the expansion plan. To make these three furnaces work, the plant needs 24,000 tonnes of iron ore daily. Sources say that two furnaces are not working to the full capacity at present.

The Koraput- Kothavalasa- Kirandul (K-K) line is the lifeline for RINL when it comes to shifting of iron ore to its stockyard NMDC supplies iron ore to the plant from Bailadila mines in Dantewada district of Chhattisgarh As a practice, RINL maintains a stock of to six lakh tonne ore that can feed to its demand for a month With the less supply, the stocks have decreased and the available ore is sufficient only for 10 days. NMDC, however, is supplying iron ore through Koraput- Rayagada (R-V Line) at present Railway authorities say that the repair works are likely to be completed by Dec 12

Source : Indian Express
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Kochi port receives its first coastal steel consignment of RINL
Published on Tue, 14 Nov 2017

Business Line reported that the Kochi port on Sunday received the first coastal consignment of steel from Rashtriya Ispat Nigam Limited. The arrival of the consignment is the result of efforts by the Union government under the ‘Sagarmala’ project to move cargo along coastal routes. MV Sabarimalai, the coastal cargo vessel carried 5,000 tonnes of steel consignment from RINL’s Visakhapatnam plant. It was the first steel consignment from RINL which was moved by the coastal route. The company used to transport its consignments for distribution in Kerala by rail.

On arrival, the Kochi Port Trust traffic manager welcomed the captain of the ship in the presence of officials of the port, RINL Cochin, and Shreyas Shipping and stevedores.

On October 31, the Union Ministers of Shipping and Steel had jointly flagged off the first coastal consignment from the Visakhapatnam Port. MV Sabarimalai had left Visakhapatnam on November 8.

According to the present plan, around 10,000 tonnes of steel consignments from RINL are expected every month, and companies like SAIL and JINDAL may start such services in the near future, giving additional cargo volume to the port.

Source : Business Line
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China’s iron ore imports in October look suspicious
Published on Tue, 14 Nov 2017

Business Live reported that if the sharp drop in China’s iron ore imports in October looks suspicious, it should be viewed in the light of the record high the previous month and a holiday week. Preliminary commodity import figures released by China’s General Administration of Customs showed iron ore imports for October slumping to 79.5 million tonnes, down a massive 22.7% from September’s all-time high of 102.8 million.

October’s imports were the weakest since February 2016, sparking market concern that China’s cuts to steel output over the winter to lower pollution were biting far harder, and faster, than initially anticipated. But while iron ore imports may well moderate somewhat in coming months, the October slump and the September record would better viewed as a whole, rather than two separate months.

It’s most likely the case that the week-long holiday early in October caused a pull-forward of iron ore cargoes, boosting the September figures at the expense of October.

Putting the two months together gives a total of 182.3 million tonnes, or an average of 91.2 million. This is slightly higher than the 89.6 million tonnes average for the first 10 months of 2017, indicating that, taken together, September and October were hardly weak.

The risk is that October’s shock number is over-interpreted by market participants, when in reality it is little more than a statistical anomaly. The customs numbers also didn’t gel with vessel-tracking and port data compiled by Thomson Reuters Supply Chain and Commodity Forecasts.

Shipping data pegged China’s seaborne imports for October at 87.1 million tonnes, slightly higher than the 86.3 million estimated in September.

While the vessel-tracking numbers don’t align exactly with customs numbers as they exclude overland imports from neighbours such as Mongolia and Russia, they have been a consistently accurate predictor of the official figures. The shipping data suggests that China’s iron ore imports in September weren’t actually a record high, but equally, the imports for October were nowhere near as weak as the customs data indicated.

It wasn’t just iron ore imports that looked somewhat off-colour in October, with strong declines also reported for coal, crude oil, copper, edible vegetable oils and rubber.

Coal imports dropped 21.4% from a month ago, while copper was down by 23.3%, crude oil by 16.2%, vegetable oils by 21.7% and rubber by 19.7%. Declines of these magnitudes make it all the more likely that October was pay back for an extremely strong September. While there were good reasons for some retreat in October’s commodity imports, the customs figures have likely overstated the issue.

Iron ore imports are likely to moderate over winter as authorities mandate steel output cuts in a bid to limit pollution from coal-powered industries. The major steel-making province of Hebei will limit steel and iron output by 50% in major producing cities including Tangshan, Handan and Shijiazhuang in the winter period from November to March, the official Xinhua News agency reported on November 3.

Efforts to limit the burning of coal are also likely to act as a brake on imports of the polluting fuel over the winter period. The decline in crude oil imports was a surprise, given refineries normally ramp up output ahead of winter, although imports may have been affected by the smaller, independent refiners exhausting their quotas.

Source : Reuters
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AAi, helmaal vergeten deze te plaatsen, bij deze alsnog:

ArcelorMittal (MT) Q3 2017 Results - Earnings Call Transcript

Nov. 10, 2017 3:26 PM ET|1 comment| About: ArcelorMittal (MT)
Q3: 11-05-17 Earnings Summary
Slides News
EPS of $1.18 beats by $0.32 Revenue of $17.64B (+ 21.5% Y/Y) misses by $-260M
ArcelorMittal (NYSE:MT)

Q3 2017 Earnings Conference Call

November 10, 2017 08:00 AM ET

Executives

Daniel Fairclough - Investor Relations

Genuino Christino - Head, Finance

Analysts

Mike Shillaker - Credit Suisse

Alain Gabriel - Morgan Stanley

Ioannis Masvoulas - RBC

Seth Rosenfeld - Jefferies

Luc Pez - Exane

Carsten Reik - UBS

Novid Rassouli - Cowen

Cedar Ekblom - Bank of America

Phil Gibbs - KeyBanc

Bastian Synagowitz - Deutsche Bank

Christian Eric - SocGen

Operator

Daniel Fairclough

Good afternoon, everybody. This is Daniel Fairclough from the ArcelorMittal Investor Relations team. I am joined by Genuino Christino who is our Group Head of Finance and together we like to welcome you to this call to discuss the third quarter 2017 results. This morning, we published our results along side a full presentation with speaker notes and an accompanying Q&A document. So, I hope you have had chance to review these documents and what I hope you take away from those documents is that this is our best third quarter shipment performance since 2008. It's another quarter with EBITDA around the $2 billion level and with net income in excess of $1 billion. Market conditions continue to improve and you can see in our presentation that the PMI reading for the ArcelorMittal weighted PMI is above 55, is the highest reading that we had since 2010. So this supports the positive outlook for the fourth quarter and then into 2018.

So with that introduction we are ready to take your question.

Question-and-Answer Session

Operator

[Operator Instructions]

And we will take the first question please from Mike Shillaker at Credit Suisse.

Mike Shillaker

So couple of questions if I may. The first one in Ilva. Can you give us a little bit more color possible on any conversations you have had with the commission? Because -- and can you give us a bit full prices in terms of how you guys internally are reconciling the commission which is clearly gone anti dumping suggesting that they understand this is a global market on one hand, on the other hand opening a phase two investigation suggesting that steel is local market which does seem somewhat contradictory but from the conversations you had internally with them do you think it's a product line issue with Ilva or is something more significant involving the whole consolidation process of the Ilva entity and is the first question.

The second question just on graphite electrodes, obviously it has been talking point across the reporting season. Can you give us a sense of how you all fixed on electrodes both for the arc furnaces but also for integrated mills? A, have you supply -- have you secured your supply for 2018? B, could you talk a little bit about your pricing mechanism? This is primarily long term contract that you will be buying on regarding pricing and can you give us a bit color on that. And also within that context can you give us a little sense of the extent cost per ton steel that you expect the increase in electrodes for next year to incur for you.

And then finally just on Brazil obviously it has been market there in the past, it has been a great market for you. There has been a lot of data recently suggesting that maybe Brazil has turned the corner. I guess this is sort of stay yet to show through numbers. And but can you give us a little more color in terms of what you are seeing in the Brazilian market would be fantastic.

Daniel Fairclough

Thanks Mike. So I think I'll take the first couple of questions and then hand over to Genuino to update you on the Brazil situation. And so I think first of all talking about Ilva in the news that we received on Wednesday that the commission, European Commission is moving to a phase two investigation. And I am certainly not in a position on the public forum like this to discuss the conversations that we've been having with a case team so far. And I think everybody can read the press release that they made on Wednesday and talk about some of the focus points in that investigation and what they are going to be digging into in more detail during the second phase. And I think you do in your question raised some interesting points regarding the way that the trade investigations have looked at the European market and in fact the global market when it comes to steel and imports and unfair trade. And so far that hasn't been echoed in a way that the investigation or the way that the market has been defined for the commission's investigation of the Ilva deal.

EPS of $1.18 beats by $0.32 Revenue of $17.64B (+ 21.5% Y/Y) misses by $-260M
Our perspective is that this is a positive deal for all stakeholders. If you look at our market share plus Ilva for hot roll coil and our share of the market is less than 30%. If you look at galvanized products, our share of the market is less than 40%. So from our perspective we are not really moving the needle here in terms of market concentration. What we will be doing is obviously revitalizing a very important steel asset in Europe and we will be making it more competitive and we will be increasing its production which from our perspective is important for all stakeholders. It's important for the employees at Ilva, it's important for the environmental and the surrounding community and ultimately it's going to be very important for the European customer base.

Moving to the second question on electrodes; how are we fixed, we’re very well fixed, Mike. So and we’ve got annual contracts for our electrode supply so we’ve got good security into 2018 obviously the price of those electrodes is changing 2018 versus 2017 and that’s been something that we’ve been renegotiating in recent weeks. And so what you can be assured of is that we have security of supply and the second thing that you should be assured of is that we’ll be getting the best available price in the market reflecting the strength of our buying power and scale of our purchases in the market.

In terms of the cost per ton impact and I can’t really join those dots for you. I think yourself and a number of your peers have written on this topic in the last couple of months. I think you understand the intensity of electrodes both in the EAF routes and the integrate route so I think you’ve got a good hand on what the potential implication for cost per ton is. Clearly it’s more of an issue for the EAF route than the integrated route so we’re very well positioned given that 80% of our steel is produced through the integrated route. And looking into the near future I think this should continue to be an ongoing support for steel pricing. And I hand over to Genuino for the Brazil question.

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Genuino Christino

Thank you, Daniel, so Mike, yes I think it’s clear what I would like to point to you and we start to see the recovery in Brazil also showing our numbers right now if you look at our shipments this quarter is pretty strong. We have been talking about the recovering flat business in Brazil and if you see this quarter year-on-year you see also now some recovery also in our long business. But we need to be little bit careful there because construction will continue to be down this year in Brazil but most likely we have seen the worst, I think our best case is for is second half in construction that will be relatively stable to first half but in a positive momentum hopefully going to 2018. We all know the growth is accelerating [Indiscernible], Q4 should be good and the forecast is that we see for 2018 also looking good. So that’s Brazil.

Daniel Fairclough

Thanks very much Mike so we’ll move to the next question please from Alain at Morgan Stanley.

Alain Gabriel

Thanks good afternoon gentlemen. Two questions from my side if I may, firstly on your working capital items for the year, you clearly lifted your working capital guidance and if you look at the prices of the raw materials that fairly come down, should we interpret the increased working capital guidance as an upgrade for your outlook or both shipments and volumes versus what you thought was going to be vacate in Q2? And the second question is the U.S. appears to be the only region that’s out of sync in terms of margins across your portfolio. Now that we’re half way through Q4 how should we think about going at the Q4 and Q1 next year? Should we expect the price cost differential to reverse? Thank you.

Genuino Christino

So let me take the first question on the working capital. I think we have been clear that our guidance is really based on prices that we see at the time we’re preparing our release. And then if you see here releasing quarter two results at the end of July since then we have seen prices, - prices, steel prices rising, so as we all know prices in July they were relatively soft and then since then we have seen prices recovering and it’s also clear if you look at our shipments now so clearly we’re going to be at the top, in most regions we’re going to be at the top of our apparent steel construction forecast. So, it's really a function of the evolution of prices and I would say also I'll confidence in achieve better shipments also higher.

Daniel Fairclough

Thanks, Alain, so, I'll just take the question on outlook for the NAFTA business in Q4. I think if you look at our steel business as a whole and the momentum is positive heading into the fourth quarter and with the exception of the U.S. So, you’ve seen rising spread environment over the past three months and that will be a support for our business in Europe. It will be a support for our business in Brazil and it will be a support for our business in ACIS Q4 versus Q3. And the exception to that trend have been the U.S. where you’ve seen actually a little bit of price deterioration in the U.S. markets towards the end of September, and overall pricing is a lot more stable Q4 versus Q3 then the other segments. On top of that you’ve obviously got the normal seasonal effects in NAFTA where you’ve got the two holidays; we’ve got the upcoming Thanksgiving Holiday and then Christmas which normally means that NAFTA volumes in Q4 are a shade below the Q3 levels. So, those two factors combined should be something that you are factoring in to your Q4 estimates.

Daniel Fairclough

Great, thanks Alain. So, we'll move to the next question from Ioannis at RBC.

Ioannis Masvoulas

Thanks very much and good afternoon. Two questions from my side, first on the guidance. You guided to H2 shipments at or above the H1 levels. Looking forward, should we expect Q1 ’18 shipments to be up sequentially in line with typical seasonality? And then secondly on China, you flagged earlier this year some downside risk to Chinese steel spreads but they have actually been very resilient north of $200 per ton and above your indicated range of 130 to 170. How do you see this developing in the next three to four months especially in the back of that winter production curve that China is targeting? Thank you.

Genuino Christino

So, I'm going to take the first one Ioannis. I think we're not going to be really getting to 2018 guidance that is to talk about it in as we release our Q4 numbers. So you will have to wait a little bit for 2018.

Daniel Fairclough

And just on the China question. I think we are seeing signs of progress in China, that's clear, we can see the evidence of that in the reduced export levels. So domestic activity is being better and than anybody had really anticipated early in the year. And so there are signs of progress; capacities you identified has been removed again probably more than people anticipated earlier in the year. But I think we still need to be watchful and that any moderation in demand is much by further capacity reduction. So that is improved market situation, now you talk about these spread levels which are above the sort of historical range and but any reduction in demand would need to be met by further capacity reductions for that to be sustained. But it is important that we sustain in China high levels of spread in order for the government to achieve its objective reducing the leverage that these heavy industries currently have.

Ioannis Masvoulas

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seekingalpha.com/article/4123483-arce...
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This Week's Raw Steel Production

Sign up for the weekly Raw Steel Update newsletter.

In the week ending on November 11, 2017, domestic raw steel production was 1,739,000 net tons while the capability utilization rate was 74.6 percent. Production was 1,591,000 net tons in the week ending November 11, 2016 while the capability utilization then was 67.1 percent. The current week production represents a 9.3 percent increase from the same period in the previous year.

Production for the week ending November 11, 2017 is up 1.4 percent from the previous week ending November 4, 2017 when production was 1,715,000 net tons and the rate of capability utilization was 73.6 percent.

Adjusted year-to-date production through November 11, 2017 was 78,213,000 net tons, at a capability utilization rate of 74.6 percent. That is up 4.0 percent from the 75,174,000 net tons during the same period last year, when the capability utilization rate was 70.8 percent.

Broken down by districts, here's production for the week ending November 11, 2017 in thousands of net tons: North East: 198; Great Lakes: 627; Midwest: 164; Southern: 686 and Western: 64 for a total of 1739.

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
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Kobe Steel, Nissan, etc are just tip of the iceberg
Published on Tue, 14 Nov 2017

Japan Today reported that the recent string of scandals, one following hard on another, has deeply shaken Japan’s manufacturing sector. Nissan, Japan’s second-largest automaker, got the spectacle rolling in September, admitting vehicle inspections had been conducted by unauthorized employees. Finally (for now): Subaru, acknowledging in late October abuses similar to Nissan’s.

Spa! takes us back a few years to show this is nothing new, reminding us of Mitsubishi Motors’ fuel mileage scandal in 2016, Toshiba’s accounting scandal in 2015, and Toyo Tire and Rubber’s falsification, over a 20-year-span culminating in disclosure in 2015, of data pertaining to its earthquake shock absorbers.

Shattered reputations and clouded business prospects aside, Nissan and Subaru are now in the midst of massive recalls, Nissan’s involving 1.16 million vehicles, Subaru’s 300,000.

Common sense suggests a common thread, which Nishino boils down to one word: “Pressure.” “There is nobody,” he says, “who is not working under pressure.” Corporations are pressured by stockholders to raise dividends, by clients to meet deadlines, by the government to meet standards. Employees are pressured by their bosses, the bosses by their bosses, and so on.

Up to a point, pressure is stimulating. Past that point it’s damaging. Way past that point, it can be devastating. “It’s like a virus,” Nishino says. A small mistake gets made. Corrected immediately, its repercussions would be minor. Covered up, it grows, spreads, mutates, spreads farther. By now too many people are involved, too much is at stake. Painless correction is no longer possible. The instinctive response is coverup – until that too becomes impossible, with the results we are now witnessing.

An automaker employee, speaking to Spa! on condition of anonymity, reveals something of the prevailing atmosphere. The inspection requirements which Nissan and Subaru flouted are not easy to meet. Inspectors must be highly qualified. They earn high salaries. Their expertise is too narrow for them to be shifted to other work between inspections. When not inspecting, they are idle. Companies naturally want to keep their numbers down. When production is at its peak, those numbers are liable to be insufficient. There’s a choice: put uncertified inspectors to work and hope nobody notices, or get hopelessly bogged down. An additional pressure Spa!’s source mentions, a new factor in the equation, is that to minimize overtime. “But the work has to get done!” he exclaims. So overtime work, too, gets covered up unreported and largely unpaid.

That too has consequences, the worst being karoshi (death from overwork). A case in point mentioned by Spa! is that of NHK reporter Miwa Sado, who died in 2013 at age 31 of heart failure. The month before her death she’d worked 150 hours overtime. Does NHK’s four-year-long failure to make this public constitute a coverup? Or was it, as the broadcaster claims, a matter of respecting the family’s wish for privacy? Either way, Spa! notes the inescapable irony: NHK was vigorous enough in its coverage of a more notorious karoshi episode the suicide in 2015 of 24 year old Matsuri Takahashi, an employee of the advertising giant Dentsu Inc. When the problem is one’s own, privacy has a way of suddenly becomes paramount.

Source : Japan Today
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Soaring global prices push New Zealand steel up 14pc

NZ Herald reported that rising international prices have prompted Fletcher Building's Pacific Steel to increase costs to its New Zealand customers by 14%. Stan Clark, Pacific Steel's sales and marketing manager, wrote to customers, telling them of the price hike.

Mr Clark wrote that "As an outcome of international steel price movements since the middle of the year, traded steel prices have increased here in New Zealand throughout that period. As a consequence, Pacific Steel has reviewed its prices and will be reflecting this market movement by increasing its prices by approximately 14 per cent commencing for orders placed for manufacture from the November production campaign.”

The head of one big Auckland-headquartered building business said the price rise illustrated the sorts of pressures being placed on the industry.

Whether it means some big construction jobs might be cancelled because the numbers would not stack up is uncertain.

The chief said the price rise made quoting on contracts much harder. Sub-trades were being asked to hold their prices for a set period so clients could be assured prices would not escalate, the building boss said.

Mr Mark Malpass, interim chief executive of Steel & Tube, sent out a letter in October telling of price rises. He wrote that "Global prices for finished steel and stainless steel products have steadily been rising over recent months, driven by increasing commodity prices used in steel making and greater demand for metal products. Of note over this period, have been the significant cost increases for coking coal, iron ore, nickel and zinc.”

Mr Malpass said that "Due to these market conditions over recent months, we have received price increases from our main suppliers which we cannot continue to absorb. It has therefore become necessary to increase our prices on a range of steel, stainless steel and allied products. The below headline increases will start to apply for orders placed and deliveries commencing from 15 November 2017."

Source : NZ Herald
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WTO rules against US anti-dumping duties on OCTG steel pipes from South Korea

Yonap reported that South Korea won a case at the World Trade Organization (WTO) against the United States over the country slapping anti-dumping duties on steel pipes, nearly three years after lodging the complaint. In July 2014, the US Commerce Department had levied 9.9 to 15.8% anti-dumping duties on oil country tubular goods (OCTG) imports from Hyundai Steel, Nexteel, Seah Steel Corp and Husteel.

Five months later, South Korea submitted an appeal with the WTO against the tariff, arguing that the US calculation of margins for Korean products was not reasonable when compared to the rate of global profit margins.

The WTO dispute settlement panel sided with Seoul's claim that the US incorrectly applied the term same general category of products in determining for OCTG products and didn't use the actual profit data.

Seoul's trade ministry said in a release "If the panel ruling is confirmed and the U.S. complies with it, anti-dumping measures on Korean OCTG will be lifted. It would enhance the business environment for Korean companies in the US market."

The ruling will be confirmed if the two sides don't appeal within 60 days.

South Korea exported USD 818 million worth of OCTG to the world's largest economy in 2013, but the amount shrank to USD 262 million in 2015 and USD 271 million in 2016.

Source : Yonap
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EU OLAF finds that Chinese steel was sent via Vietnam to evade tariffs

Reuters reported that The European Union’s anti-fraud office (OLAF) said it has found Chinese steel was shipped through Vietnam to evade the bloc’s tariffs. OLAF told Reuters roughly EUR 8.2 million of anti-dumping duties were evaded when organic coated steel from China was shipped through Vietnam and given Vietnamese certificates of origin.

Financial recommendations were sent to the customs authorities of Belgium, Greece, Slovenia, Italy, Poland, Portugal, Lithuania, Romania and Sweden for the recovery of roughly EUR 8.2 million of antidumping and countervailing duties.

The amount involved is small and the case was concluded at the end of 2016, but market participants say Vietnam remains a hub not for fraud, but for Chinese trade tariff circumvention involving large tonnages of steel.

The EU imposed provisional duties on Chinese corrosion-resistant steel in August this year. In the EU, Chinese imports of corrosion-resistant steel, which nearly doubled last year, steadied in the year to August just as imports from Vietnam surged from historically negligible levels.

Source : Reuters
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Tata Steel Kalinganagar running at 100pct capacity

Business Standard reported that Tata Steel said it has achieved full-ramp of its first phase envisaged capacity of three million tonnes at the Kalinganagar project in Odisha. Mr Rajiv Kumar, vice president (Kalinganagar project), Tata Steel said “We are now running with the full rated capacity (three million tonnes). There is 100% capacity utilization.”

Tata Steel had started commercial production at Kalinganagar greenfield plant in May last year. Since then, the steel maker had not touched peak production capacity though it came almost close to the rated capacity levels.

The Kalinganagar steel project would be devoted entirely to manufacturing flat steel products. In the second phase operations, the steel major intends to develop a cold rolling mill for producing automotive grade steel.

Source : Business Standard
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Electrosteel Steels reports increased loss for Q2

Economic Times reported that debt laden company Electrosteel Steels that is undergoing insolvency resolution reported a quarterly increase in losses for the quarter ending September which is when the company started the resolution process with a court appointed resolution practitioner. Losses widened by 23% to INR 297 crore from INR 242 crore in the quarter ending June.

Total expenses, however, slid too by 4% at INR 1,085 crore. Ehile total income from operations suffered a marginal hit by 1.4% at INR 762 crore, net of GST, other income declined by almost 86%.

The Jharkhand-based company that has an integrated steel plant as well as a ductile iron (Dl) pipe facility had a net debt of INR 11,710 crore at the end of the year 2016-17 and was referred to the Kolkata bench of the NCLT by the State Bank of India. The company was admitted by the tribunal for corporate insolvency resolution on July 21, when the board was suspended and Dhaivat Anjaria of PricewaterhouseCoopers was appointed as the interim resolution professional.

According to media reports, the company has evinced interest from buyers like Tata Steel, Mesco Steel, Srei Infrastructure, Edelweiss as well as from the Piramal Group.

Source : Economic Times
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Ukraine's rolled steel exports in 10 months down by 21pct

Reuters reported that Ukraine's rolled steel exports fell around 21% to 11.86 million tonnes in January-October 2017 due to a drop in production. Steel producers' union Ukrmetalurgprom said that Ukraine's rolled steel output fell 15% to 15.15 million tonnes so far this year. The union said the exports included 2.90 million tonnes of long-rolled steel, 4.15 million tonnes of flat and 4.81 million tonnes of semi-rolled steel in the first ten months of this year.

Ukraine's steel production in the ten months to end October fell 13% year on year to 17.7 million tonnes.

Steel production rose 5.5% in 2016 to 24.2 million tonnes as the industry picked up after a sharp drop the previous year due to the conflict in eastern Ukraine, where most of the country's steel production is based.

Source : Reuters
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Bhushan Steel reports lower loss for Q2

Press Trust of India reported that Bhushan Steel, which is undergoing insolvency proceedings, said its standalone net loss narrowed to INR 467.37 crore in the July-September quarter on account of higher revenues. It had reported a loss of INR 980.22 crore in the year ago quarter.

During the September quarter, total income of Bhushan Steel rose 43 per cent to INR 4,325.60 crore from INR 3,025.79 crore during the same period a year ago.

It said "The revenue from operations for the period up to June 30th, 2017 includes excise duty, which is discontinued effectively July 1, 2017 upon implementation of Goods and Services Tax (GST). GST is not included in gross sale. In view of the aforesaid change in the indirect taxes, gross sales for the quarter and half (financial) year ended July September 30, 2017 are not comparable to previous periods."

The company said that the result has been approved by the Insolvency Resolution Professional.

NCLT has appointed Vijay Kumar V Iyer as an IRP for Bhushan Steel Ltd

Source : Press Trust of India
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Canada extends steel import monitoring program to November 2020

On November 2, 2017, Global Affairs Canada posted Notice to Importers Serial No. 907, which informs importers that the steel import monitoring program, covering items 80 (Carbon Steel) and 81 (Specialty Steel) of the Import Control List (ICL), has been extended to November 1, 2020.

Carbon steel products (ICL item 80) include semi-finished products (ingots, blooms, billets, slabs and sheet bars), plate, sheets and strip, wire rods, wire and wire products, railway-type products, bars, structural shapes and units, pipes and tubes made of carbon steel. These items are covered by Harmonized System (HS) headings 7206-7229.

Specialty steel products (ICL item 81) include stainless flat-rolled products (sheet, strip and plate), stainless steel bar, stainless steel pipe and tube, stainless steel wire and wire products, alloy tool steel, mold steel and high-speed steel. These items are covered by HS headings 7301-7302, 7304-7306, 7308, 7312-7313 and 7317.

The steel import monitoring program does not limit the quantity of carbon and specialty steel products that may be imported into Canada.

The Notice extends previous notices to importers concerning the steel import monitoring program and should be read in conjunction with the Export and Import Permits Act (EIPA) and the EIPA Regulations.

Pursuant to the provisions of section 8 of the EIPA, a general import permit has been established for each of these items, General Import Permit 80 (Carbon Steel) and General Import Permit 81 (Specialty Steel). The import documentation for each shipment of carbon and specialty steel products must state that it is being imported under the authority of General Import Permit No. 80 or 81. This requirement applies to all steel products with Harmonized System headings: 7206-7302, 7304-7306, 7308, 7312-13 and 7317.

Customs brokers and importers are urged to cooperate fully with the Trade and Export Controls Bureau of Global Affairs Canada, as administrators of the monitoring program. In particular, they are requested to ensure that quantity (in kilograms), value (in Canadian dollars), product classification, country of origin, supplier name and address and importer name are given correctly, if necessary by amending the import documentation. Such cooperation will enhance the reliability of the data and reduce the burden of post-clearance auditing.

In the past, individual import permits (for which there were fees) were required for each shipment, except for certain lower value shipments and certain classes of importers. These provisions are no longer in effect.

Source : Lexology
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KVV Liepajas Metalurgs steelmaker can be sold in pieces – Minister

Baltic Times reported that Latvian Economics Minister Arvils Aseradens (Unity) told journalists after the government meeting that if the latest attempt to attract an investor for Latvia’s insolvent KVV Liepajas Metalurgs steel company fails, the company’s assets might be sold off in pieces

The minister said that the company’s insolvency administrator has selected one potential investor who now wants to test the company’s furnace. It is planned that the tests will be run until December 19 and after that the potential buyer will announce his decision about the possible acquisition. Aseradens declined to name the potential investor, but noted that this investor had shown interest in the Liepaja-based steelmaker already before.

Source : Baltic Times
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British Steel agrees for pay rise for Scunthorpe steelworkers

Scunthorpe Telegraph reported that British Steel company has agreed its first-ever pay deal with negotiators from the Community, Unite and GMB trade unions. Under the deal reached on Friday, the town’s 3,000 steelworkers will receive a four per cent rise, spread over two years. The money will be paid in installments of one per cent every six months, with the first payment back-dated to October 1. The deal is the first to be negotiated since British Steel took over the former loss-making Tata Steel Long Products business in June last year.

British Steel chief executive officer Mr Peter Bernscher said that "The hard work and dedication of our people has helped us start the turnaround of our business and, while there’s a long way to go if we’re to become truly sustainable, we wanted to recognise their valued contributions. I’d like to thank the unions for their support during this ongoing process, and our employees for their commitment to building a stronger future for British Steel."

At the time of the takeover the trade unions and their members agreed to a pay freeze, a year-long three per cent cut in wages and pension contributions and an end to bonus schemes not linked to profit to help get British Steel into the black.

After reporting a first year pre-tax profit of GBP 47 million, the company repaid the three per cent and gave a GBP 1 million allocation of shares to be divided among the employees.

Mr Paul McBean, the Scunthorpe site multi-union chairman said that "British Steel’s employees have been, and will continue to be, central to the turnaround of this business, so it's only right their efforts are rewarded. Given there’s still much to be done, and the challenges we face, we believe this is the best possible deal for our members and employees."

Acceptance of the four per cent deal comes after the workforce in a ballot rejected a previous offer of a one-off lump sum payment of GBP 300, which was subject to tax and National Insurance deductions.

Source : Scunthorpe Telegraph
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Chinese iron ore demand in November to fall by 6 million tonne
Published on Wed, 15 Nov 2017

Reuters reported that Chinese iron ore demand is forecast to fall by 6 million tonnes in November as the world's top consumer of the raw material plans to curb steel production during the winter to meet air pollution targets.

China Iron & Steel Association in a report published on its website said that cutbacks in steel output in 28 Chinese cities are set to start on November 15 and more cities may join the reductions, suggesting iron ore demand could drop by a larger extent than expected.

China's government has ordered the production curbs to meet environmental pollution targets to reduce the smog that typically occurs in northern China during the winter period from November to March. Some cities, including leading steel-producing cities Tangshan and Handan, have started the cuts one month ahead of the schedule.

CISA said that "Taking the seasonal factor into consideration, iron ore demand will fall by 6 million tonnes in November, 4.5 million tonnes higher than October.”

Chinese iron ore demand usually slows in November and December as steel mills schedule maintenance while construction demand falls during colder weather.

It added that iron ore supplies from what CISA calls the top four global miners will increase 10.95 million tonnes to 290 million tonnes in the fourth quarter from the previous quarter, weighing down the market.

The miners are BHP Billiton , Rio Tinto , Vale and Fortescue Metals Group .

Iron ore prices on the Dalian Commodity Exchange fell 5.8% in October, down for a second month.

CISA warned that iron ore prices could be hit harder if steel mills and traders dump their stocks of the raw material.

According to consultants Steelhome, iron ore stockpiles at China's main ports were at 137.87 million tonnes as of November 10, up 28% from a year ago.

Source : Reuters
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