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Iranian iron ore relationship with China

Financial Tribune reported that there is a never ending competition for supplying raw steelmaking materials and this is at its fiercest in China as the world’s largest producer and consumer of iron ore. Iran, however, is missing out on the competition and is wholly dependent on Chinese imports.

Mr Keyvan Jafari Tehrani a member of the board and the head of international affairs at Iranian Iron Ore Producers and Exporters Association said that “Iran is currently the seventh largest iron ore supplier to China a three step drop compared to its 2013 heyday.”

The analyst was quoted Donya-e-Eqtesad as saying that “Naturally, Iran has a meager share of the Chinese [iron ore] market. This is while up until 2013, Iran’s ore exports were both supported by high volumes and global prices in China.”

According to Mr Tehrani, Iran’s share of Chinese iron ore imports stood at 2.3 to 2.5% in 2013, but it exported a total of 23.5 million tonnes, over 90% of which went to China.

The next two years were witness to a large number of Iranian private iron mines’ closure and consequently a sharp drop in exports. The country was overpowered by tough competitors such as Australia, Brazil, South Africa, India, Canada and Ukraine. This brought Iran’s share of Chinese ore imports to only 1%, a figure persisting to date.

Mr Tehrani forecasts Iran’s 2017 iron ore shipments to reach 17-17.5 million tons by the yearend, emphasizing that despite the 6-million-ton drop compared to 2013, the same 90% of it will go to China.

Mr Tehrani said that “This is a negative thing; Iran is extremely dependent on the Chinese market, and any change in its dynamics will have an equally powerful effect on Iran iron ore output and exports.”

Mr Tehrani said that what made Iranian miners addicted to China was the fact that the Chinese were the only buyers paying in cash and circumventing banking sanctions against Iran.

The official added that the Chinese paid about 30-40% of the amount in cash and the rest through currency exchanges outside the banking system when the cargo was delivered.

Mr Tehrani added that and things have not changed now. Sanctions have been lifted “only on paper” and are still in full force, preventing headways in other markets such as Europe.

Issues tangled up further, however. For starters, there were signs of hope of restoring banking relations in early 2016, but Donald Trump’s election as the president of the United States last November cut most advances made on the nuclear deal front.

Source : Financial Tribune
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Vale sees 2018 iron ore prices not much lower than this year

Reuters reported that Brazilian miner Vale’s chief executive as saying that he does not expect iron ore prices to be much lower next year compared with 2017. Speaking at an investors’ event in New York, Mr Fabio Schvartsman also said the company would do everything to resume operations as soon as possible at the Samarco mine, a joint venture with BHP Billiton that has been closed since a tailings dam collapsed in 2015, killing 19 people.

Source : Reuters
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Fortescue to loose from China's shift towards high grade iron ore

Radio Australia reported that Australia's second biggest iron ore miner Rio Tinto believes it will be a big winner from China's increasing demand for high grade iron ore, but it could spell trouble for the likes of Fortescue Metals. Beijing's crackdown on inefficient and polluting mills, and a restructuring of the steel industry, has led to a significant shift in iron ore demand.

Rio Tinto's iron ore boss Mr Chris Salisbury told ABC's “The Business that this trend was showing up in a growing price gap between high and lower grade ore. We've seen the discount grow from 30 % in the first three quarters to over 40 %."

Mr Salisbury told the program that "That's a very interesting question, because we've seen the stockpiles of low grade ore at the port just increasing and it's almost like you can't give it away. "So it is a real challenge if you're in that particular market sector.”

Mr Salisbury added that "We have the flagship product in the market today; our Pilbara blend product is flagship product for China, it attracts a premium over and above the 62 % iron index, which is the key indicator."

Some analysts believe this could be temporary, relating to reduced Chinese demand leading into winter.

Source : Radio Australia
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Chinese Tianjin to build intercity railway linking to Xiongan New Area

Xinhua reported that North China's Tianjin Municipality is planning to build an intercity high-speed railway to connect with Xiongan New Area in north China's Hebei Province. The authorities are doing the preliminary work and will strive to start construction at an early date, said Song Liwei, head of the Tianjin Urban and Rural Construction Commission.

Meanwhile, Tianjin is scheduled to start construction of its sections of two high-speed railways linking Beijing with the Binhai New Area of Tianjin and Tangshan in Hebei next year, Song said.

Beijing also plans to build an expressway and two high-speed railways, including an intercity railway, to link with Xiongan.

Source : Xinhua
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'ThyssenKrupp komt met garanties voor banen'

Gepubliceerd op 11 dec 2017 om 07:32 | Views: 1.011

ArcelorMittal 15:54
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THYSSENKRUPP AG O.N. 08 dec
22,82 +0,28 (+1,25%)

ESSEN (AFN/BLOOMBERG) - Staalconcern ThyssenKrupp is over de brug gekomen met baangaranties voor het eigen personeel als de fusie met de Europese activiteiten van Tata Steel een feit is. Volgens Duitse media is het bedrijf bereid verregaande beloftes te doen. Behalve om banen gaat het dan ook om investeringen.

De stap van ThyssenKrupp sluit aan bij de eis van de vakbonden voor behoud van banen op verschillende Europese locaties. Daarnaast zouden er de eerste tien jaar geen gedwongen ontslagen mogen vallen.

Tata en ThyssenKrupp kondigden de fusie van activiteiten eerder dit jaar aan. Daarbij werd gemeld dat er in eerste instantie circa 4000 banen zouden verdwijnen. Volgens ThyssenKrupp is een fusie met Tata het beste alternatief met betrekking tot de werkgelegenheid in de toekomst.

IJmuiden
Wat de stap in Duitsland betekent voor het personeel in Nederland is niet bekend. De Duitse toezeggingen staan volgens vakbond FNV niet op papier, maar worden de komende tijd verder uitgewerkt.

De bond spreekt van een opening in de onderhandelingen die ook positief kan uitpakken voor de Nederlandse situatie en voor locaties elders in Europa. ,,Het kan natuurlijk niet zo zijn dat het behoud van banen in Duitsland ten koste gaat van bijvoorbeeld banen in IJmuiden", zo zegt FNV-bestuurder Aad in 't Veld.

Later deze maand vraagt personeel van Tata Steel in IJmuiden andermaal aandacht voor baangaranties en meer duidelijkheid. Volgens In 't Veld gaat het op 20 december om een manifestatie en niet om een staking.
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Anti-dumping measures against cheap imports could help European steelmakers – Moody’s

Published on Mon, 11 Dec 2017

According to a new report, sustained demand, higher year-over-year profits and the success of antidumping measures should support European steelmakers. In a report for its clients, ratings agency Moody's said the current operating climate underpins the 'stable outlook' for the sector into 2018. It expects that steel demand from the auto, construction and capital goods sectors will grow in 2018, with apparent steel consumption expected to grow 1.5% in 2018, broadly in line with the agency's 1.9% GDP growth forecasted for the European Union.

Moody's added that "Anti-dumping measures against a number of countries, including China, will strengthen European steelmakers' pricing power into 2018. However, steel imports into the EU will continue to rise moderately despite tariffs as countries outside the tariffs' scope continue to export steel into the EU.”

Steelmakers' operating profitability will be supported by high spreads, as well as utilisation rates at the upper end of Moody's 75%-85% range for a stable outlook and ongoing cost savings. Higher profits should enable steel manufacturers to further de-lever.

Mr Gianmarco Migliavacca, senior credit officer and author of the report, said that "Our 2018 outlook for the steel sector in Europe is stable on the back of expected growth in steel demand from the construction and auto industries. Economic expansion, as signalled by the sustained improvement in Europe's PMI, and rising profitability, as steel spreads widen, are also key supporting factors for our stable outlook."

Elsewhere, in its report, Moody's said mergers and acquisitions in the sector are likely to rise on the back of higher valuations in a more stable market. It said that "However, current oversupply is unlikely to shrink until further consolidation had occurred. Indeed, capacity is unlikely to fall in the next 18-24 months despite ArcelorMittal's purchase of Ilva and thyssenkrupp's joint venture with Tata."

Source : Source – IB Times
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Two plants set to come up in Telangana – Mr Birender Singh

Business Line reported that union steel minister Mr Chaudhary Birender Singh said that a 1.5 million tonne per annum electric arc furnace plant will come up at Paloncha in Telangana and SAIL & ArcelorMittal will finalise a high-strength steel-making unit in Kadapa district of Andhra Pradesh. Addressing a press conference here, the Union Minister said that “The electric arc furnace project, which will be based on steel scrap, will come up at the sick sponge iron plant where there is 450 acres of land.”

He added that “The plant at Kadapa, for which SAIL and Arcelor Mittal are likely to finalise the deal, is proposed to make specialised high-strength steel for the automotive sector. With India poised to become a hub for the global automotive industry, this project will be an important addition for the steel sector.”

Union Minister explained that while the details of the investments are yet to be finalised, the electric arc furnace project is likely to see an investment of about INR 9,000 crore and the AP project an outlay of INR 15,000 crore.

Referring to the two integrated steel plants proposed in Telangana and Andhra Pradesh as a part of the bifurcation of the AP Reorganisation Act, the Minister said that “A final report on the feasibility of the plants at Bayyaram in Telangana and YSR Kadapa district in AP is likely to be submitted by Mecon, which has been engaged to do the final feasibility study.”

On two earlier occasions, the feasibility studies conducted on behalf of the Steel Ministry were against the setting up of steel plants at these locations, as the returns on investments would be lower due to lack of raw materials such as iron ore and coal close to the proposed plants.

Source : Business Line
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Thyssenkrupp makes offer to workers for Tata Steel deal - Report

Reuters reported that, several people close to labor union IG Metall, said that Thyssenkrupp has offered workers commitments on jobs and investments to get union backing for its deal with Tata Steel to merge their European steel operations. Details of the offer are to be discussed at a meeting of management and labor representatives on Tuesday, the sources told Reuters on Sunday.

German industrial group Thyssenkrupp and India’s Tata Steel agreed in September to merge their European steel operations, creating the continent’s second largest steelmaker with revenues of EUR 15 billion. But workers at Thyssenkrupp fiercely oppose the deal, concerned more steel jobs will be lost on top of the 2,000 already announced.

IG Metall has demanded 10-year guarantees for jobs, plants and investments and has set a Dec. 22 deadline for an agreement.

German weekly Bild am Sonntag had on Sunday cited Thyssenkrupp personnel chief Oliver Burkhard as saying in an internal memo that the industrial group was prepared to make commitments on future investments and job security. It had quoted him as saying “With our proposal, we want to secure jobs at the future joint venture into the next decade.”

Chief Executive Heinrich Hiesinger hopes to reach a final deal with Tata Steel in early 2018 but that depends on whether he can get it passed by Thyssenkrupp’s supervisory board, where labor leaders hold half of the seats.

Source : Reuters
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Steel is the answer to goals of smart cities – Dr Aruna Sharma

Dr Aruna Sharma, Secretary Ministry of Steel, wrote in personal capacity in Hindu that Project Smart Cities is a visionary project of the Government of India for sustainable, high quality of life in terms of infrastructure, mobility and connectivity, technology, environment, availability of resources and overall living conditions and experience. The government’s Smart City initiative is an urban renewal and retrofitting programme to develop 100 such cities in the country. The move envisages a major facelift of the existing inadequate infrastructure, including roads, flyovers, airports, residential areas, city sewage systems, community areas, including parks, shopping centres, hospitals and schools. For structures that are intended to have at least a 100-year life cycle with minimal maintenance but are quick to complete, the answer lies in steel, whether it is underground, above ground or in buildings.

Underground or above

If made with steel, all sewage, drainage, water, casing for cable for Internet or transmission, will ensure zero wastage and maintenance. If roads are laid with concrete strengthened with steel, it translates to lesser damage over a period. Buildings across the globe are steel intensive.

Drinking water pipes made of stainless steel for transporting water after filtration are not only good for health but also stop leakage of potable water, a precious commodity today.

The Tokyo Metropolitan Government’s Bureau of Waterworks has used stainless steel to dramatically reduce the city’s water loss.

Bridges, culverts and crash barriers of steel will protect valuable lives. Thus, stepping ahead with steel for smart cities will trigger development, with no debris and faster execution of projects. The assets thus created promise to be long lasting. Steel is also 100% recyclable, and thus, environment-friendly.

Steel, by virtue of its physical properties, emerges a strong component in and contributor to the fabrication of infrastructure required for smart cities. In many landmark buildings, such as the Lotus Temple in Delhi, stainless steel rebars used have a lifespan of about 300 years. Creating new smart cities or upgrading old cities is fastest and cost effective with steel structures.

Myth of high costs

There is a misconception steel works out to be expensive. The principle of life cycle cost has been included in Rule 136 (1) (iii) of the new General Financial Rules (GFR), 2017.

In many government projects relating to roads, bridges, buildings, construction of railways, shipping and rural roads, the principle of life cycle cost will play a decisive role in the sanctioning of the project design.

The use of steel has a major bearing on the life of the project. In the long run, it will reduce life cycle costs. There might be several projects that are steel-intensive may see higher initial costs. But, in the long run, their overall cost comes down — determined by factors such as material, quality, repairs needed, the time for execution of the projects, etc. All such projects will add to the inventory of national assets.

Across the globe, cities are marching towards becoming smart cities. In the attempt, they are either coming out with unique solutions using existing infrastructure or are adopting eco-friendly and sustainable models to solve problems of traffic, drainage, commuting, accommodation, and the like.

In Detroit, Michigan, in the U.S., dumped wartime steel sheds are being brought back to life. These are being converted into places of accommodation which look chic and provide low-cost living in an artful manner.

Smart cities will house cohesive societies with intensive steel use, and will include advanced architecture and city planning, buildings made with eco-friendly yet sturdy and durable materials, advanced technology for faster communication and transportation and adequate water resources, all being energy efficient as well.

Source : The Hindu
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Substantial transformation of hot-rolled steel to make CORE and cold-rolled steel – Vietnam

Vietnam Plus reported that Vietnam argued that according to the World Trade Organisation (WTO)’s rules of origin, the country to be determined as the origin of a goods is either the country where the goods has been wholly obtained or the country where the last substantial transformation was carried out. According to Vietnam, international practices and the US’s rules showed that there is a substantial transformation after hot-rolled steel is processed to make CORE and cold-rolled steel. Therefore, CORE and cold-rolled steel produced in Vietnam using hot-rolled steel from a third country has Vietnamese origin.

US Department of Commerce slapped heavy import duties on some steel products from Vietnam after it decided they originated in China, violating the US’s anti-dumping and anti-subsidy orders. The department on December 5 announced preliminary affirmative rulings that corrosion-resistant steel and some cold-rolled steel products imported from Vietnam were produced from substrate originating in China. This circumvented existing anti-dumping and countervailing duty (AD/CVD) orders on CORE and cold-rolled steel from China.

In 2016, the US imposed the AD rate of 199.43% and CVD rate of 39.05% on imports of CORE from China while AD and CVD rates of imports of China’s cold-rolled steel were set at 265.79% and 256.44% respectively.

Source : Vietnam Plus
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Malaysian steel sector fears gas cost hike

The Malaysian Iron and Steel Industry Federation fears the sector could see a USD 49 million cost increase as a result of a natural gas price hike expected on January 1st 2018. Misif recently told Kallanish Energy‘s sister publication, Kallanish, steel business costs have increased by roughly 15% in recent years because of natural gas, electricity and labor costs. Gas Malaysia announced at the end of November it will increase gas prices for users outside the power sector by USD 0.94 per million Btu to USD 7.58 per MMBtu for January to June 2018.

Source : Strategic Research Institute
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Pakistan NTC determines provisional AD duties on color-coated steel coil from China & S Africa

Pakistan’s National Tariff Commission (NTC) has determined provisional anti-dumping duties on color coated steel coils and sheets imports from China and South Africa, but refrained from imposing tariff until final determination. Commission established that domestic industry suffered material injury due to the significant increase in imports of color coils at dumped price. The provisional dumping margin on C&F price was determined as per below

China
Hebei Yanbo Color Coated Sheets Co Ltd 2.36%
Hangzhou Jurui Steel Co Ltd 3.9%
All others 6.81%

South Africa
All exporters/producers 37.53%

On April 2017, Karachi-based steel manufacturer, International Steels Limited had filed the antidumping petition against the imports of Chinese and South African origin color coils and sheets. The applicants alleged that color coated steel coils and sheets are being exported to Pakistan at dumped price and causing material injury to Pakistan’s domestic steel industry.

The product allegedly being dumped into Pakistan is classified under Pakistan Customs Tariff classification numbers, 7210.7010, 7210.7020, 7210.7090, 7212.4010 and 7212.4090. Investigated product has large number of end-use applications for the purpose of agriculture, construction, home and electrical appliances, packing / drums, railway coaches, furniture & fixtures, billboards, sign-boards, hoardings, road signs and others.

Period of Investigation:
For determination of dumping: From January 01, 2016 to December 31, 2016
For determination of material injury: From January 01, 2014 to December 31, 2016

Source : ME Steel
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Shandong Iron and Steel raises USD 200 million in 6.5% Bonds Due 2021

Nikkei quoted source familiar with the pricing, state owned steel producer Shandong Iron and Steel Group issued USD 200 million in senior unsecured bonds maturing in June 2021 with a fixed annual coupon of 6.5%. The cash raised from the issue will be used to repay existing debt.

DBS Bank Ltd, Zhongtai International, Bank of China, CEB International and Guotai Junan International are the joint global coordinators, bookrunners and lead managers for the issue. ICBC (Asia) and Orient Securities (Hong Kong) are the other joint bookrunners and lead managers.

Source : Nikkei
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British Steel - HMS Queen Elizabeth commissioned on December 7
Published on Mon, 11 Dec 2017

HMS Queen Elizabeth aircraft carrier has been commissioned on December 7th in a ceremony attended by Her Majesty the Queen. The Queen boarded the ship and watch the Royal Navy White Ensign raised for the very first time as it enters service with the Royal Navy.

Source : Strategic Research Institute
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Techint plans another steel mill in Mexico

Mexico News Daily reported that Italian-Argentine conglomerate Techint Group will invest USD 1 billion to set up a new steel mill in Monterrey in northeastern state of Nuevo Leon in Mexico. The hot rolling mill will be developed as part of an expansion of Techint’s industrial center in the municipality of Pesquería, where the consortium first started operations in 2013. Expected to be operational in the second half of 2020, the new plant will have an annual production capacity of 3.7 million tonnes of steel and manufactured products to meet demand in the automotive industry as well as the home appliance, machinery, energy and construction sectors.

CEO Mr Paolo Rocca presented the plan to President Enrique Peña Nieto in a private meeting in Mexico City before making it public.

Techint first entered the Mexican market in 1954 but strengthened its presence in 2005 when it acquired steel manufacturer Hysla and together with the companies Siderar and Sidor created Ternium. Two years later, Ternium consolidated further by purchasing the Mexican company Grupo IMSA for almost US $3.3 billion.

Ternium is now the largest steel company in Latin America with production centers in Mexico, Argentina, Guatemala, Colombia and the United States.

Founded in Milan in 1945 by the current CEO’s grandfather, Agostino Rocca, Techint employs 48,530 people around the world and earned profits last year in excess of US $15 billion. The conglomerate’s total shares are worth just over US $29 billion.

Source : Mexico News Daily
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Aluminium drinks cans are most recycled drinks container
Published on Mon, 11 Dec 2017

Aluminium beverage cans have been certified as the world’s most recycled drinks container at a recent Smithers Pira conference. The Smithers Pira Sustainability in Packaging Europe Conference heard stats from Metal Packaging Europe indicating seven out of 10 drinks cans sold in the UK are recycled and 75% of all aluminium ever produced is still in use today.

Steel for packaging recorded an average European recycling rate of 78% in 2015, which included five countries exceeding 85%.

With greater focus being placed on packaging, consumers are now more concerned about waste produced and want to be informed of the most up to date recycling statistics.

Mr Martin Constable chairman of the Can Makers said that “The news that aluminium cans are now confirmed as the most recycled drinks packaging in the world is great news for environmentally concerned consumers. The can is the ideal packaging of choice for brands to meet their own sustainability targets as well as meet customer demand for ‘greener’ packaging.”

Whilst these numbers are encouraging, there remains much to do to reach the 2020 metal packaging industry ambition of an 80% European average rate.

Analysts have called for a legislative framework to create a functioning circular economy.

Source : Packaging news
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Environmental authorities may cancel SAIL mining plan in Saranda forest

Business Line reported that environmental authorities are likely to cancel a plan by a state steel company SAIL to dig for more iron ore from a massive reserve located in a lush green forest roamed by elephants, sources said, as the government aims to halt mining in the area.

Steel Authority of India Ltd was banking on the mine in the country's east to supply a big chunk of its raw material needs for a multi-billion-dollar expansion of its steel production capacity.

SAIL produces only around 800,000 tonnes a year from a section of the Chiria mine but was targeting to raise that to 7 million tonnes in the next few years, to lift its steel capacity nearly four times to 50 million tonnes by 2030/31.

Mr Sunil Kumar Barnwal, the mines secretary of Jharkhand state where the mine is located, told Reuters that “Getting forest clearance for the mine under existing guidelines is a challenge.” Mr Sunil added that “There are also special environmental conditions in Saranda forest region that need to be fulfilled to get clearance.”

Saranda is home to endangered species of flying lizards and is also an integral part of an elephant corridor. But years of mining around the area by various companies have led to a 21 % drop in the elephant population between 2010 and 2016, according to an environment ministry report.

The Central government is now considering stopping all mining activity in the area, two government sources with direct knowledge of the matter said.

If the expansion does not go through, it would also be a disappointment for resources conglomerate Adani Enterprises, which was working on bidding for a contract to operate the mine on behalf of SAIL.

Source : Business Line
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Thyssenkrupp Tata Steel merger to increase competition in Europe – Mr Aditya Mittal

Published on Tue, 12 Dec 2017

Global Handelsblatt reported that European head of ArcelorMittal, the world’s largest steelmaker, told that ThyssenKrupp’s agreed merger with Tata Steel’s European operations will likely lead to further cutbacks in steel production at other European companies. Mr Aditya Mittal said “The ThyssenKrupp-Tata merger means new measures, synergy effects, combined research and lower costs. We need to find an answer to increase the pace of our Action 2020 corporate strategy and transformation program to stay as competitive as in the past.”

Mr Mittal said that demand for steel has fallen in Europe since 2000, Chinese efforts to rein in exports are beginning to bite and ArcelorMittal has carried out its own production reductions. He said “As a result, company’s steel plants in Europe are now working at full capacity.”

He added “Consolidation is always beneficial because it creates synergies and gives you an improved cost base. This increases competition.”

Source : Global Handelsblatt
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Metal workers union continues strike action at Agni Steel in SA

African News Agency reported that Liberated Metalworkers Union of South Africa (Limusa) said on Monday that it will proceed indefinitely with its strike at Agni Steel South Africa in Port Elizabeth due to protracted wage negotiations that started in 2016 with the company. This comes as the protected industrial action entered a fourth day on Monday. The union was demanding R48 per hour at the time while the company was paying workers R24 per hour. The union has now reduced their salary demand to ZAR 40.37 per hour.

Limusa general secretary, Cedric Gina, in a statement accused Agni Steel of making several attempts to delay engagements or negotiations on the demands by raising frivolous jurisdiction points, but said all those attempts had failed. Gina said “The company attempted to address the demands while we were engaging on the offer and making counter proposals the company went on to sign an agreement with a minority trade union (Numsa) which never submitted any demands or part of the dispute. The action by the company led to a deadlock and Limusa issued a strike notice to the company on 27 September 2017.”

Gina said the company had approached the Labour Court for an interim interdict on October 1 and the interim order was granted. A week later, the matter was heard by the Labour Court and Limusa won the case and the interim order was discharged, meaning the Labour Court confirmed that the strike was protected. He said “On the 8th December 2017 the company and the union met in an attempt to resolve the dispute but the company failed to address the demand of R40.37 and backpay. That has resulted in the collapse of negotiations and commencement of strike action.”

Gina said “The strike is set to proceed indefinitely as workers are firmly behind their demand for R40.37. If addressed by the employer the demand is set to bring workers at par with their colleagues in the Metal and Engineering Industry.”

Agni Steel South Africa is a black-owned, Indian-backed, joint venture that runs a R400 million state-of-the-art, mini-steel mill, at the Coega industrial development zone (IDZ) near Port Elizabeth. The company employs about 270 people and of those, around 200 are Limusa members.

Source : African News Agency
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Global level polices needed to reduce steel overcapacity- Corrado Clini

Xinhua reported that a former Italian minister told Xinhua that in order to fight global steel overcapacity, it is essential to put in place common policies at the world level. Speaking in the context of a recent European summit in Germany to address the global steel overcapacity issue, Corrado Clini, former Italian minister for environment, said the matter could not be solved by anti-dumping measures because they are only temporary. He told "The most important thing is to make common global rules every partner should implement.”

Environmental rules could be a good vehicle, for example, if we could adopt common rules on steel production on carbon intensity, he said, adding "This could be a driver also to push technological innovation."

Clini said that in Europe, there was a reorganization of steel production, spurred by the new environment laws in order to cut emissions and for better waste management. For this reason, many plants that could not afford restructuring closed down.

He said "In other places in Europe, like in Ruhr in Germany, production capacity was made compatible with international market needs.”

That is to say global players should have policies according to global demand.

Clini said “China is fully aware of the overcapacity issue and is also implementing new environmental measures. As a result, a big restructuring of the Chinese steel market is taking place and China is becoming a world leader in innovative environmental technologies. What China has done in the field of clean energy in the last 15 years has no equal.”

He said Europe should play a different role and support the creation of technological platforms between Europe and China in order to manage in a sustainable way the growing demand of energy and goods coming from China.

Source : Xinhua
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