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US steel import permits in May decline by 23% MoM - AISI

Based on the Commerce Department’s most recent Steel Import Monitoring and Analysis (SIMA) data, the American Iron and Steel Institute (AISI) reported that steel import permit applications for the month of May totaled 2,943,000 net tons (NT). This was a 26.3% decrease from the 3,993,000 permit tons recorded in April and a 21.3% decrease from the April preliminary imports total of 3,738,000 NT. Import permit tonnage for finished steel in May was 2,347,000, down 17.9% from the preliminary imports total of 2,860,000 in April. For the first five months of 2018 (including May SIMA permits and April preliminary data), total and finished steel imports were 15,379,000 NT and 12,044,000 NT, down 2.5% and 0.3%, respectively, from the same period in 2017. The estimated finished steel import market share in May was 25% and is 26% year-to-date (YTD).

Finished steel imports with large increases in May permits vs. the April preliminary included tin free steel (up 68%) and wire rods (up 64%). Products with significant year-to date (YTD) increases vs. the same period in 2017 include hot rolled sheets (up 36%), plates in coils (up 36%), mechanical tubing (up 22%), line pipe (up 22%) and oil country goods (up 19%).

In May, the largest finished steel import permit applications for offshore countries were for Germany (138,000 NT, up 15% from April preliminary), Japan (123,000 NT, up 25%), South Korea (113,000 NT, down 76%), Italy (80,000 NT, up 34%) and Taiwan (76,000 NT, down 34%). Through the first five months of 2018, the largest offshore suppliers were South Korea (1,531,000 NT, down 1% from the same period last year), Japan (615,000 NT, down 7%) and Germany (547,000 NT, up 13%).
Source : Strategic Research Institute
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Three US mills object to NLMK USA steel slab exemption

Platts reported that Nucor, US Steel and AK Steel all are objecting to NLMK USA's request for slabs to be exempt from 25% import tariffs, according to filings made public. The three steelmakers all filed separate objections to NLMK USA's request continue importing tariff-exempt slabs from its Russia-based parent company to support its operations in the Pennsylvania and Indiana. The filings follow similar moves by Nucor and US Steel in objecting to Evraz NA exemption request for Russian slabs. The producers argue that there is ample domestic slab supply in the US which NLMK has access to but continues to rely on imported slab maximize profits.

According to Nucor in its filing, "Such a business model directly undermines US steel production and should not be rewarded with a product exclusion.”

US Steel also cited similar concerns while adding that slab imports' "threat to national security is even stronger when the source of the imports is a major US foreign policy adversary such as Russia."

Both steelmakers allege that NLMK USA is asking for exclusions that are in excess of its actual production needs. NLMK USA is requesting for approximately 3.5 million-3.6 million mt, according to Nucor and US Steel.

US Steel claims NLMK is requesting exclusions for 273.5% of its historic annual slab consumption in the US based off average annual consumption from 2015-2017 of 1.3 million tonne. The steelmaker also alleges that of NLMK USA?s 84 exclusion requests, 41 are for products that it did not consume from 2015-2017.

According to the US Steel filing, "Thus, it is clear that NLMK's product exclusion requests are designed to eviscerate any benefit the 232 could have for the U.S. industry and are indicative of intentionally malicious actions by NLMK to damage American steel producers and their workers.”

AK Steel's objection is based off the argument that it has the ability to produce products requested for tariff exclusion and is "currently utilizing its melt facilities at 89% capacity." It lists operations at Middletown, Ohio, and Dearborn, Michigan, in its filing but makes no mention of the 2.5 million st/year idled blast furnace in Ashland, Kentucky.

Source : Platts
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MTR to provide details about rebar use at Sha Tin-Central link

The Standard reported that MTR Corp chairman Mr Frederick Ma Si-hang promised to announce more details regarding the steel-bar controversy in the HKD 97.1 billion Sha Tin-Central link. The rail operator's board met specifically to discuss how some steel bars at a Hung Hom station construction site were allegedly cut short to fake proper installation. Chief Executive Ms Carrie Lam Cheng Yuet-ngor said the government is treating the case with utmost importance. Ms Lam said before her weekly meeting with the Executive Council said that "We take it very seriously and there are established mechanisms within the Transport and Housing Bureau, Highways Department, Electrical and Mechanical Services Department, to monitor these railway projects to ensure they are safe and effective.”

She said it is too premature for her to comment now on what actually happened in that particular incident in the Hung Hom station of the Sha Tin-Central link. She said that "We have asked or required the MTR Corp to submit the report to us as soon as possible, and I can assure the public that once the facts have been obtained we will disclose them and say if there is a need for any remedial action."

Source : The Standard
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Trump Trade war - Quebec government to press US to exempt province’s smelters

Fast Market reported that Quebec government will push the United States government to exempt its aluminium industry from the Section 232 duties that the Trump administration announced.

Quebec smelters make the vast majority of aluminium exported from Canada, and much of it destined for the US.

Ms Christine St-Pierre, the province’s minister of international relations during an aluminium summit on Monday June 4 in Montreal said that “Quebec will look to obtain an exemption for the Quebec industry.” She noted, however, that her government supported the Canadian government in challenging American action at the World Trade Organization and through North American Free Trade Agreement dispute settlement procedures. She said it also supported the Canadian federal government’s decision to impose retaliatory tariffs on US aluminium, steel and other products, albeit “regretfully.”

St-Pierre said that The tariffs will have “a harmful effect that will ripple throughout the US value chain.” She noted that secondary US users, such as members of the brewing industry, had spoken out against the move, citing an increase in costs and loss of business.

Source : Fast Markets
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Fortescue announces acquisition of a stake in Atlas Iron

Fortescue Metals Group has agreed to acquire 15.0% of the ordinary shares in Atlas Iron Limited at a price of A$0.04 per share. In addition, Fortescue has an economic interest through a cash settled swap relating to notional shares equivalent to approximately 4.9% of Atlas Iron’s ordinary shares. As a result, Fortescue has an aggregate physical and economic interest in 19.9% of Atlas Iron's ordinary shares.

Fortescue does not intend to support the proposed Scheme of Arrangement between Atlas Iron and Mineral Resources on its current terms, but reserves the right to do so.

Source : Strategic Research Institute
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Tata Steel leads race to buy Usha Martin - Report

Business Line, citing sources close to the development, reported that Tata Steel has placed an aggressive bid to acquire Usha Martin, a specialty steel producer with a production capacity of 1 million tonnes in Jamshedpur. The report quoted a source as saying that “Tata Steel had a meeting with Usha Martin officials in Kolkata on Wednesday and in all probability they will outbid JSW Steel, which has placed a bid of INR 5,500 crore. Vedanta is also believed to be in the race to acquire Usha Martin.”

Usha Martin is one of the largest wire-rope manufacturers in the world and leading specialty steel manufacturer in India. The company set up its first long product plant in 1974 near Jamshedpur. The plant uses high-quality iron ore and coal from captive mines, enabling it to achieve consistent quality in steel products.

As of March-end, Usha Martin had a debt of about INR 3,700 crore. Last fiscal year, it trimmed losses to INR 282 crore from INR 354 crore a year earlier. However, revenue rose 24 per cent to INR 4,038 crore (INR 3,246 crore) last fiscal year.

Source : Business Line
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European Steel day 2018 - EUROFER

The European Steel Association’s (EUROFER) annual conference took place covering Steel, Sustainability and Low-Carbon Innovation. The need for such innovation will shape the investment decisions of the EU steel industry for the next 20-30 years. The impact of the US Section 232 measures will also be addressed during the conference. Geert Van Poelvoorde, President of EUROFER said, “Our calculations show that to successfully deploy all of the low-carbon innovation projects that the industry has conceived to industrial demonstrator level will require €10 billion over the next ten to fifteen years. With the Ninth Framework Programme discussions now getting into their stride, it is more important than ever that policy makers support our industry in advancing towards becoming low-carbon”.

Mr Van Poelvoorde highlighted EUROFER’s ongoing work on specific innovation pathways to avoid emitting carbon or to make better use of it in the creation of other products.

The President then addressed the threat of the US’ Section 232 tariffs. He said “The European steel industry condemns the US import tariffs on steel. This protectionist trade action is absurd – it hits the US’ own allies hardest. We also now expect to face a large loss of market share in the US, a market that accounts for 16% of EU exports. The anticipated loss of export volume has been modelled by the US as being at least 37%. This is a conservative estimate – the actual effect could end up being much larger.”

He said “There is the need to continue discussions with the US to address the root cause of this trade dispute: global steel excess capacity. We have to deal collectively with countries that subsidise production in order to target export markets, and there are international fora for this process. Unilateral measures are not the answer.”

He added “In the meantime, we call for an EU safeguard to be deployed as quickly as possible – the longer the delay, the greater the injury to the European steel industry will be.”

Source : Strategic Research Institute
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NMDC eying value addition projects for Nagarnar steel plant - CMD

Business Line reported NMDC has scripted a strategic management plan to address risk and opportunities. Bullish on its growth, expansion and diversification projects, Mr N Baijendra Kumar, Chairman and Managing Director of NMDC, said: “Our value-addition projects will play an important role in the NMDC growth story. In our Diamond Jubilee year, we recorded the best-ever performance since inception. We are looking at an exciting phase ahead both in the near and long term.”

In an exclusive interaction with BusinessLine, Kumar said “NMDC’s value-added projects, including the INR 15,525-crore Nagarnar Steel Plant in Chhattisgarh, and the pellet plant at Donimalai in Karnataka, will play an important role in the company’s business plans. The Nagarnar plant, wherein we have already invested INR 13,000 crore is set to get commissioned later in the third quarter of the calendar year.”

He told “There are constraints in terms of evacuation of iron ore produced from mines. The last year’s strong performance was in spite of two months’ disruption in supply link. We are in the process of developing INR 3000-crore 15 million tonne slurry pipeline from Kirandul-Nagarnar-Viskhapatnam, in phases. The pipeline is expected to be commissioned by 2021. Various clearances have been secured. The land acquisition for the pipeline is underway. Tenders will be called for and awarded for development.”

He added “The 1.2 million tonne pellet plant at Donimalai set up, as a part of the diversification initiative, is in the process of stabilisation. Down the line, we may also look up to further increase the capacity or even consider a steel unit.”

Source : Business Line
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Metalloinvest expands SBQ steel heat treatment capacity at OEMK

Metalloinvest, a leading global iron ore and HBI producer and supplier, and one of the regional producers of high-quality steel, announced that it will build a heat treatment facility for hot-rolled steel at OEMK.The heat treatment facility will have an annual capacity of 70,000 tonnes of high-quality (Special Bar Quality, SBQ) bars, and will be established within the enterprise's finishing plant. The facility will add to the existing heat treatment capacities at OEMK’s rolling plant #2.

Metalloinvest has agreed an equipment supply contract for the facility with Danieli Centro Combustion, part of Danieli group, the Italian leader in steel plant equipment. The official signing ceremony for the contract took place on 5 June as part of the steel summit «Russian Steel & Global Market: future begins today». The contract was signed by Andrey Varichev, CEO, Management Company Metalloinvest, and Fabrizio Pere, CEO, Danieli Centro Combustion.

The project will cost around 3 bn roubles (including VAT), and includes the construction of a building for the heat-treatment facility and two thermal furnaces, and the creation of heavy-lifting and transmission equipment, as well as associated infrastructure. The first furnace is planned to be launched in 2019, and the second will begin operations in 2020.

The new facility will enable OEMK to carry out various kinds of heat treatment from 400-980°C, a wide range of temperatures, in order to produce high-quality rolled steel products with a specific microstructure. Heat treatment is required in the production of various kinds of steel for springs, ball and roller bearings and construction, as well as for high-strength metal.

The construction of this new heat-treatment facility for hot-rolled steel products is part of the Company's systematic programme to develop production and sales, and increase the client-orientation and quality of its SBQ. The project was launched by Metalloinvest in 2017.

The programme includes measures to modernise OEMK's production facilities and develop the enterprise's sales system, with the aim of increasing production, boosting quality and expanding its SBQ range.

As part of the programme in 2017, a reduction and calibration section in Rolling Mill 350's mid-sized production line was installed at OEMK, which enabled the Company to produce hot-calibrated rolled steel products with precision tolerances in geometric sizes, without the need for further finishing.

In 2017, Metalloinvest supplied around 1 mn tonnes of SBQ to customers, compared with 0.9 mn tonnes in 2016.

Source : Strategic Research Institute
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CMC produces spooled rebar coils at new Danieli micro mill at Oklahoma

Top-quality spooled bars in coil “made in the USA, for the US market” are now available from Commercial Metals Company’s (CMC) new micro mill, CMC Steel Oklahoma, located in Durant, Oklahoma. CMC recently held a dedication ceremony in April for the new mill. It was produced in endless mode at Commercial Metals Company’s new micro mill, CMC Steel Oklahoma, supplied by Danieli

Danieli K-Spool technology allows the production of hot-rolled, high-quality, perfectly shaped compact coils. These twist-free spooling, high-filling factor, heavy, easy to handle coils are preferred, added-value feeding product of the downstream rebar fabricating industry. CMC’s spooled rebar will be available in sizes #3 to #6 (10 to 19 mm) and in 1.5 up to 4.8 ton spools.

CMC Steel Oklahoma is the first endless casting rolling micro mill in the world to produce spooled bars in coils. Outstanding final product quality was produced by CMC from the first coil as you can see represented in the photos

Currently, CMC is operating two micro mills supplied by Danieli. The first, commissioned in Mesa, Arizona, in 2009, and in Durant, Oklahoma, since spring of 2018.

Source : Strategic Research Institute
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INR 200 crore government funding for innovation in steel sector
Steel News - Published on Fri, 08 Jun 2018
Image Source: Google Play
Business Line reported that the Indian government has set aside INR 200 crore for an innovation fund to increase domestic steel production. Announcing a slew of measures to support the steel industry at an event organised by Steel Re-Rollers Association of Maharashtra (SRAM), Chaudhary Birender Singh, Union Minister of Steel, said that India has huge scope to develop its infrastructure.

The Steel Ministry has further decided to boost the Micro, Small and Medium Enterprises industry by using steel produced by them in government-backed infrastructure projects. MSMEs contribute about 57 per cent of the country’s steel requirements.

The Steel Re-Rollers Association of Maharashtra said that the government would be able to save INR0,000 crore annually by using steel made by MSMEs in all government infrastructure projects.

Source : Business Line
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Marcegaglia acquires Novero Spa

Marcegaglia group completed the acquisition of 80% of the capital of Novero Spa, a Turin-based company specializing in the production of cold-drawn tubes. The takeover of Novero Spa, which has a turnover of about 20 million euros and 80 employees, is part of the strengthening plan at the core business of Marcegaglia group, leader in the steel processing with more than 5.6 million tons processed each year.

The partnership between Marcegaglia and Novero family, which will keep Massimo Novero as CEO of the company, will arise in three years the new “Marcegaglia-Novero Spa” to a production of more than 20 thousand tons of cold-drawn tubes per year, compared to the current 12.5 thousand, with a turnover of more than 40 million euros.

Source : Strategic Research Institute
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Trump Trade War - EU counter measures likely by June end

Business Review reported that European Union expects to hit imports from the United States with duties of 25% from July on bourbon, jeans, motorcycles, orange juice and a variety of steel products, ratcheting up a transatlantic trade conflict. EU commissioner Maros Sefcovic told a news conference that “The Commission expects to conclude the relevant procedure in coordination with member states before the end of June so that the new duties start applying in July.”

European Commission’s plan also includes duties of between 10 and 50% on a further EUR 3.6 billion of US imports in March 2021 or potentially sooner if the World Trade Organization has ruled the US measures illegal.

US products on the list include orange juice, bourbon, jeans, motorcycles and a variety of steel products.

Source : Business Review
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Odisha willing to offer land for SAIL ArcelorMittal auto steel JV plant
Steel News - Published on Fri, 08 Jun 2018

PTI reported that the Odisha government said that it is inviting SAIL-ArcelorMittal JV to set up an automotive grade steel plant in the state as ample land was available there. Odisha Principal Industry Secretary Sanjeev Chopra said "They (SAIL-Mittal JV) are examining various locations. And the ball is in their court. Once they express interest, land is also available. Ample land is available in Rourkela. I am sure in case they are interested they can do it very fast here. There is no issues of land acquisition also.”

Steel Authority of India Limited recently responding to the state's request wrote a letter to Odisha Principal Industry Secretary Sanjeev Chopra, saying they would keep the eastern state in mind while zeroing in on the location for the proposed steel plant.

SAIL has a steel plant in Rourkela with 4.5 million tonnes of Hot Metal and 4.2 Million Tonnes of Crude Steel per annum capacity.

SAIL and ArcelorMittal had in May, 2015 entered into a memorandum of understanding (MoU) to explore the possibility of setting up an auto-grade steel manufacturing facility under a joint venture in India. The proposed JV will construct a cold rolling mill and other downstream finishing facilities in lndia; touted as one of the fastest-growing automotive markets in the world with production expected to double between 2014 and 2020, from 3.6 million units to 7.3 million units.

Source : PTI
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Trump Trade War - Jeremy Corbyn urges UK PM Theresa May to show true leadership

The Mirror reported that Labour leader Mr Jeremy Corbyn has urged UK PM Ms Theresa May to stand up for thousands of British steel workers whose jobs are being threatened by bully Donald Trump’s trade war. Mr Corbyn called her to show true leadership by confronting the US leader over the tariffs. He said “The taxes, which came into force a week ago and affect the EU, are bad news for British industry, putting our steel firms and tens of thousands of workers at risk. The UK’s steel industry and its 32,000 employees are under threat from President Donald Trump’s reckless decision to jack up tariffs on steel. Theresa May must take a lead at the summit in calling him out.”

The Labour leader made the plea as the Prime Minister goes into showdown talks with the US President at the summit of G7 leaders in Canada. They will meet in La Malbaie, Quebec, a town located in a crater formed when a meteor hit the Earth hundreds of millions of years ago. It will be Mrs May’s first face-to-face meeting with Trump since he imposed a 25% import tax on steel imports and 10% on aluminium .

Source : The Mirror
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Steelworkers ratify new contract with Moly-Cop AltaSteel

United Steelworkers (USW) Local 5220 members have ratified the tentative agreement reached with Moly-Cop AltaSteel Ltd. in Edmonton on May 27, 2018. The four-year agreement was accepted by 90% of the members voting at dual meetings yesterday. The workers had been working without a contract since the previous agreement expired July 31, 2017.

Paul Perreault, President of USW Local 5220, said "We are sure that the new agreement will provide the path forward for the relationship between the union and the company and that the parties will be able to focus on building AltaSteel. The Bargaining Committee wishes to express our thanks to the membership for their support and also thank AltaSteel's customers for their patience."

Moly-Cop AltaSteel, owned by American Industrial Partners of New York City, is a leading provider of grinding media for mines both nationally and internationally, supplying to major miners such as Highland Valley Copper, Teck, Rio Tinto, US Steel and BHP. Moly-Cop AltaSteel is also a preferred supplier of reinforcing bars primarily for the Western Canadian market.

Source : Strategic Research Institute
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Trump Trade War - French president Macron to meet Trump

Sputnik reported that French President Emmanuel Macron has commented on the US decision to remove an exemption sparing the EU, Canada and Mexico from 25 percent tariffs on steel and 10 percent import duties on aluminum, due to the alleged national security threat posed by the import of these metals. French President Emmanuel Macron said in a press briefing that the French and Canadian delegations will try to persuade US President Donald Trump at the G7 summit to take a more conventional path on trade amid his imposition of tariffs on the EU and Canada

He told "I will try to convince him, with Minister Trudeau and all our partners, to find a more normal path on trade topics. We can't wage a trade war between friends. The countries have to remain polite as the US is an ally and we need them."

He added "If the US decides to withdraw from its global role, it would be bad for the US economy and image, and Trump knows that.”

Macron said that recent trade actions taken by Trump are counterproductive to the economy of the United States.

Source : Sputnik
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Trump Trade War - Turkish exporters see increase in orders

Daily Sabah reported that Turkish steel exporters are experiencing an increase in orders for July after the US hit key allies the European Union, Mexico and Canada with steel and aluminum tariffs. The CIB chairman said that "Australia, Argentina, Brazil and South Korea were exempted from this tariff and a quota was introduced. These quotas will eventually end and they will come to us. In fact, demands have already begun to go up. I see that orders for July have already begun to arrive. Turkish steelmakers will catch up with last year's export figures in 2018. At the end of the year, they will export 25 percent more to the U.S. on a value basis. "On the quantity basis, we will be very close to last year. We have experienced losses in the first months but it looks like will close it in the third and fourth quarter."

Steel Federation Chairman Nam?k Ekinci also thought Turkey was in an advantageous position in steel exports to the US. He said that "The introduction of 25 percent steel tariff on Mexico, which was our biggest rival, has brought us to an advantageous position. After the developments, construction steel prices in the US are going towards USD 900. Even with the additional tariffs on our price of USD 550, it will remain below USD 900 when it arrives in the US market. We are being competitive even if we remain USD 30 below the US companies. The US will come to us. The orders have already started to arrive.”

Turkey's steel exports to the US stood at USD 1.12 billion in 2017. Meanwhile, Turkey's total steel exports in the said year stood at USD 8.25 billion.

Source : Daily Sabah
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Trump Trade War - Russia mulls suing US in WTO

TASS reported that department director of the Russian Ministry of Economic Development Maxim Medvedkov said on Wednesday in an interview with the Rossiya 24 TV Channel that Russia is considering an option of bringing the United States to a trial in the World Trade Organization (WTO) in connection with steel and aluminum duties imposed by the US. He told "We are currently considering this issue - it is quite possible that we will also think of bringing the US to the WTO tribunal.”

Russia said it can dispute the US decision in the WTO, notified the Organization about possible retaliation measures in connection with duties and made an offer to the EU to jointly undertake measures for protection of Russian and European business in connection with new tariffs.

Source : TASS

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New Zealand Transport Agency knew about substandard Chinese steel – Report

Newshub reported that newly released emails have shown the New Zealand Transport Agency knew it had imported hundreds of tonnes of poor-quality steel from China, despite public denials. The documents, obtained by RNZ under the Official Information Act, show 600 steel rods meant to be used as "piling and structural support for bridges, flyovers and various structural elements" on the Huntly section of the Waikato Expressway failed brittleness tests and couldn't be used as intended. They also show the rods came from a mill that doesn't usually produce export-grade steel, and were tested at a lab that doesn't have accreditation.

In 2016, it was revealed 1600 tonnes of substandard Chinese steel had forced contractors to redesign bridge on the expressway so they'd meet NZ safety standards.

At the time NZTA denied there were more problems.

NZTA told RNZ, rejecting the broadcaster's requests for documents, citing commercial sensitivity said that "There have been no similar problems identified with steel used in other state highway projects.”

Two years later, the Ombudsman has forced the agency to hand them over.

The 600 rods were eventually cut in half and used in a new design involving more steel and concrete. The contractors wore the cost for the new design.

RNZ reporter Phil Pennington, who obtained the documents, said that "It's clear from the newly released emails that the contractors, they don't often tell the agency if they have steel or other projects that fail - they design a fix, they wear the extra cost.”

"What that can mean is the agency is oblivious to serious problems with materials."

But in this case the NZTA clearly knew - the emails show managers discussing the rods less than 24 hours after the story about the 1600 tonnes of poor quality steel was reported.

Source : Newshub
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