Eurobench.com

voda 12 juni 2018 15:30

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PM Modi to dedicate to nation SAIL’s expanded steel plant at Bhilai on June 14

PTI reported that Prime Minister Narendra Modi will dedicate to the nation the modernised and expanded plant of state-run steel maker SAIL at Bhilai, on Thursday. SAIL official said “Prime Minister of India Narendra Modi to dedicate SAIL’s modernised and expanded Bhilai Steel Plant, Bhilai Chhattisgarh to the nation on June 14.”

This would be the third plant of SAIL which the prime minister will dedicate to the nation. In 2015, he had dedicated Rourkela and IISCO steel plants.

Source : PTI

voda 12 juni 2018 15:30

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Rebuilt blast furnace commissioned at SAIL RSP

Business Line reported that Union Minister of Steel, Chaudhary Birender Singh on Monday dedicated the rebuilt Blast Furnace-1 ‘Parvati’ of SAIL, Rourkela Steel Plant (RSP) to the nation. A SAIL statement said, “Parvati is the first Blast Furnace of SAIL that was dedicated to the nation on February 3, 1959 by the first President of India, Rajendra Prasad. The Blast Furnace was put down on August 6, 2013 for total rebuilding.”

It added “Although erected on the old foundation, the rebuilt furnace equipped with superior technology has a higher production capacity. With the rebuilding, the annual production capacity, of the furnace has increased from 0.438 million tonne (MT) to 1.015 MT.”

Source : Business Line

voda 12 juni 2018 15:31

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Thyssenkrupp CEO urged by Elliott to negotiate better deal with Tata Steel

Bloomberg reported that Elliott Management Corp urged Thyssenkrupp AG to negotiate a better steel joint venture with Tata Steel Ltd, increasing pressure on the German company’s management to deliver more favorable terms. In a letter to Thyssenkrupp management, Elliott highlighted the divergence in performance in Tata and Thyssenkrupp’s steel businesses. It said “The weakness in Tata’s recent performance means that a tie-up is now less favorable for Thyssenkrupp. If the initial deal terms are maintained, it represents a shift of about EUR 1.9 billion less for Thyssenkrupp. This significant divergence in relative valuation should be adequately reflected in the final terms of the steel JV”

The investor views could make it harder for Thyssenkrupp Chief Executive Officer Heinrich Hiesinger, who has pledged his future on the deal with Tata, to proceed under the current terms. He still needs to convince the company’s supervisory board to sign off on the joint venture.

Source : Bloomberg

voda 12 juni 2018 15:32

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Indonesia imposes anti-dumping duties on color coated steel from Vietnam

VNS reported that the Indonesian Anti-Dumping Committee (KADI) has announced the application of anti-dumping measures on colour-coated steel sheet imports from Viet Nam and China. KADI determined that steel sheet imports from Viet Nam dumped into the country stood between 12.01 per cent and 28.49 per cent of the Indonesian market and caused significant injury to the domestic steel industry. Based on this conclusion, the Indonesian Trade Security Committee (KPPI) proposed the application of anti-dumping measures on Vietnamese colour-coated steel products for a five-year period.

KADI initiated the dumping investigation on December 23, 2016, following complaints by PT NS BlueScope Indonesia that repeated illegal trade practices devastated production and employment as well as caused damage to the Indonesian steel industry.

The colour-coated steel imports that were investigated had the HS codes of 7210.70.70.00, 7212.40.10.00 and 7212.40.20.00.

KADI said that from July 2015 to June 2016, Indonesia imported 224,120 tonnes of colour-coated steel, of which 196,191 tonnes came from Viet Nam and China, accounting for 87.5 percent of the country’s total steel imports.

Source : VNS

voda 12 juni 2018 15:32

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GMS Market Commentary on Shipbreaking in Week 23 - SUMMERTIME GLADNESS!

With much of the shipping fraternity engaged in Posidonia festivities in Athens last week, in addition to the ongoing month of Ramadan and upcoming Eid celebrations in Turkey and the Indian sub-continent, activity and levels were expectedly more subdued this week. Despite that, at least two FSU sales did manage to register at firmer numbers, perhaps the result of some over exuberant celebrations during Posidonia.

Meanwhile, after filling up their plots with over 10 VLCCs from various Cash Buyer hands, Pakistan has slumped alarmingly of late. A worrying currency depreciation to the tune of about 6% coupled with the imminent imposition of the 5% sales taxes announced during the recent budget, hint at a certain panic that seems destined to set into a previously bullish Gadani ship recycling sector and any further sales (especially those at numbers similar to the recently bullish levels) seem highly unlikely, at least in the near future.

Nevertheless, the Bangladeshi and Indian markets continue to impress with Chittagong buyers having awoken from their mid-summer lull and increasingly keen to acquire units once again, as the Indian market continues to dominate the market rankings with the firmest levels on offer. The overall rise in local steel plate prices in India has also seen Alang regain its position as the top placed sub-continent market – particularly for mid-sized specialist units such as reefers, LPGs and offshore untis, of which, there have been a number of fixtures of late.

With the number of available candidates starting to dwindle, we anticipate it will likely be a quieter summer / monsoon period ahead for sub-continent yards, as the plethora of units sold so far this year starts to gradually be absorbed by the markets, ahead of an anticipated busier fourth quarter of the year.

Source : GMS Weekly

voda 12 juni 2018 15:33

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Usha Martin board gives approval for sale of steel business

Usha Martin informed SEBI that the Board of Directors of the Company at its meeting has decided to explore the sale of its Steel Business in order to achieve the objective of deleveraging the Company. The Board inter alia reconstituted the Committee of Independent Directors of the Company to appoint investment bank(s), consultant(s) and advisor(s) to help evaluate proposals and oversee the process for sale of Steel Business of the Company. It added that any actual sale of the business will only be undertaken by the Company after due consideration and by following due process of law by obtaining appropriate approvals from the Board, Regulators, Shareholders and Lenders, as applicable.

The company’s board has always been of the view that wire rope is the core strength of Usha Martin, which is one of the global leaders in the business, said the unnamed director cited above. But until now, the board was sceptical about the chances of finding a buyer for the steel business

Usha Martin’s steel division contributed INR 3,421.19 crore, or 60.77% of the company’s revenue from operations of INR 5,629.09 in fiscal 2017-18, without adjusting for internal sales between business divisions. Operating profit from the segment in the year till March was INR 99.78 crore. The wire rope division with revenue of INR 2,080.62 crore, however, is more profitable and contributed INR 234.77 crore towards operating profit in 2017-18.

The Telegraph reported that Kalyani Group and Liberty House of UK may join the race to acquire the steel business of Usha Martin Ltd. Tata Steel and JSW Steel had earlier showed interest in Usha Martin's one-million-tonne steel plant near Jamshedpur.

Source : Strategic Research Institute

voda 12 juni 2018 15:34

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Danieli heat treatment complex for Metalloinvest’s OEMK

Oskol Electrometalurgical Kombinat - OEMK, part of Metalloinvest Holding, has selected Danieli Centro Combustion for the supply of a new heat treatment complex to process hot-rolled bars for mechanical engineering applications (e.g., spring steel, bearing steel, non-alloyed/alloyed structural steel, high-strength steel). The complex, which will process 70,000 tpy of bars ranging from 19 to 90 mm in diameter and 3 to 12 m in length, will be erected in Stary Oskol, Belgorod Region, Russia.

Five different types of heat treatment -isothermal annealing (standard and pendular), spheroidizing annealing, high-temperature tempering, and under annealing- will be performed.

Among the technology highlights will be two continuous roller-hearth furnaces equipped with a high-efficiency heating system working in protective atmosphere (nitrogen), subsequent fast and controlled cooling, and automatic bar loading/unloading handling systems, starting from the multi-layer composition until the final bundling in hexagonal shape.

Danieli Automation process control system will manage the line in fully automated mode, and linked to the shop’s upper level automation systems.

The contract signing ceremony was held during the 16th Moscow Steel Summit “Russian Steel & Global Market: future begins today” on June 5th and attended by representatives form Danieli: Chairman Gianpietro Benedetti, CEO Giacomo Mareschi, CEO of Danieli Centro Combustion Fabrizio Pere and Executive Director and CEO of Metalloinvest LLC. Andrey Varichev.

The first batch is planned by Q4 of 2019.

Source : Strategic Research Institute

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voda 12 juni 2018 15:35

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Arcelormittal and Lanzatech break ground on project to revolutionise Blast Furnace Carbon Emissions Capture

ArcelorMittal has begun construction of new premises at its site in Ghent, Belgium, to house a pioneering new installation which will convert carbon-containing gas from its blast furnaces into bioethanol. If proved successful, the new concept has the potential to revolutionise blast furnace carbon emissions capture and support the decarbonisation of the transport sector.

The technology in the gas conversion process was pioneered by Chicago-based company, LanzaTech, with whom ArcelorMittal has entered a long-term partnership. The technology licensed by LanzaTech uses microbes that feed on carbon monoxide to produce bioethanol. The bioethanol will be used as transport fuel or potentially in the production of plastics.

This is the first installation of its kind on an industrial scale in Europe and once complete, annual production of bioethanol at Ghent is expected to reach around 80 million litres, which will yield an annual CO2 saving equivalent to putting 100,000 electrical cars on the road. The new installation will create up to 500 construction jobs over the next two years and 20 to 30 new permanent direct jobs. Commissioning and first production is expected by mid-2020.

The application of this microbial gas conversion system significantly advances ArcelorMittal's carbon capture and storage (CCS) and carbon capture and utilisation (CCU) capabilities and enhances steel's role in the circular economy. ArcelorMittal's long-term aspiration is to become a zero-waste business, with all materials used or generated during steel production recuperated, treated and reused in the production chain or becoming the raw materials for other industries.

ArcelorMittal will work with specialized partners to roll out this bioethanol technology. Funding was obtained from various sources, including the European Union's Horizon 2020 program, to carry out further research and development and scale up the project.

Source : Strategic Research Institute

voda 12 juni 2018 15:37

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Best Steel Logistics starts manufacturing plants in Bengaluru

Best Steel Logistics has said that it has put its plants at Malur Industrial Area, Bangalore, for manufacturing TriCoat Tubes in three variants - SureCoat, DuraCoat and SuperCoat — with the advanced galvant technology. The total capacity stands at 50,000 tonnes. The technology has been obtained from the US to manufacture the tubes with triple-layer of protective coating - paint, zinc and UV organic coating, with total capital outlay of up to INR 100 crore. This product is used worldwide as a substitute for PVC electrical conduit pipes.

The board also took note of the change of name of the company to Apollo Tricoat Tubes or Apollo Coated Pipes or Apollo Coated Products or any other name as may be approved by the RoC or any other regulatory authorities.

It has appointed Mr Amresh Mishra, as Chief Financial Officer and Key Managerial Personnel of the Company w.e.f. June 11,2018 and Mr Rahul Gupta as Managing Director of the Company w.e.f. May 4, 2018, subject to approval of shareholders in general meeting.

Source : Strategic Research Institute

voda 12 juni 2018 15:38

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AISI update on Raw Steel Production in US in Week 23

In the week ending on June 9, 2018, domestic raw steel production was 1,753,000 net tons while the capability utilization rate was 74.8 percent. Production was 1,747,000 net tons in the week ending June 9, 2017 while the capability utilization then was 74.9 percent. The current week production represents a 0.3 percent increase from the same period in the previous year. Production for the week ending June 9, 2018 is down 0.1 percent from the previous week ending June 2, 2018 when production was 1,755,000 net tons and the rate of capability utilization was 74.9 percent.

Adjusted year-to-date production through June 9, 2018 was 40,321,000 net tons, at a capability utilization rate of 75.5 percent. That is up 1.8 percent from the 39,597,000 net tons during the same period last year, when the capability utilization rate was 74.4 percent.

Broken down by districts, here's production for the week ending June 9, 2018 in thousands of net tons: North East: 201; Great Lakes: 655; Midwest: 178; Southern: 645 and Western: 74 for a total of 1753.

Source : Strategic Research Institute

voda 12 juni 2018 15:38

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Avic Guizhou Anda Aviation reaffirms confidence in ring rolling technology from SMS group

Avic Guizhou Anda Aviation Forging Co Ltd has awarded SMS group the contract to supply an additional ring rolling machine. The new ring rolling machine, type RAW 400(500)/200(250)-2500/800 DM, is to be erected at the plant it operates in Anshun, China. Production is scheduled for mid-2019.

The new ring rolling machine is capable of rolling seamless rings with diameters of up to 2,500 millimeters and a maximum height of 800 millimeters. Anda plans to use the RAW to manufacture jet engine rings made from titanium and nickel based alloys for use in the aerospace industry. The machine can be operated with a maximum radial rolling force of 500 tons and an axial force of up to 250 tons.

This is already the second ring rolling machine Anda has ordered from SMS group. The first machine, type RAW 500/400-3000/700, was delivered back in 2003.

Source : Strategic Research Institute

voda 12 juni 2018 15:39

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US April Steel Shipments up 5% from April 2017 - AISI

The American Iron and Steel Institute (AISI) reported that for the month of April 2018, US steel mills shipped 7,798,326 net tons, a 6.0 percent decrease from the 8,299,418 net tons shipped in the previous month, March 2018, and a 5.0 percent increase from the 7,428,080 net tons shipped in April 2017. Shipments year-to-date in 2018 are 31,259,675 net tons, a 4.0 percent increase vs. 2017 shipments of 30,061,271 net tons for four months.

A comparison of April shipments to the previous month of March shows the following changes: cold rolled sheets, down 6 percent, hot dipped galvanized sheets and strip, down 6 percent and hot rolled sheets, down 6 percent.

Source : Strategic Research Institute

voda 12 juni 2018 15:40

0

Uncertainty hoovers over Italy's huge Ilva steel plant

Xinhua reported that the fate of one of Europe's largest steel smelters is becoming a central issue for Italy's new government. The Ilva steel plant in the southern Italian city of Taranto has long been under scrutiny for the pollution it produces for years. As long ago as 2005, the plant was seen as producing 90 percent of the dioxin in Italy and almost a tenth of Europe's dioxin. Dioxins are toxic byproduct of some kinds of industry and tied to nervous system problems, damage to human immune systems, fertility and healthy development for children. Cancer rates around Taranto are also higher than the rest of the country.

Ilva employs nearly 14,000 workers and it produces around 13,000 metric tons of steel per day. It also has net financial losses of around 30 million euros (36 million U.S. dollars) every month. The plant, which has been run under state control since 2015, is reportedly set to run out of money within the next 60 days.

A year ago, Luxembourg-based steel conglomerate ArcelorMittal offered to buy Ilva for 1.8 billion euros (2.2 billion US dollars), and to invest another 2.4 billion euros (2.9 billion US dollars) to clean up and modernize the plant. But now the sale is on hold.

This week, Beppe Grillo, the comedian-turned activist who founded the Five-Star Movement, said Ilva should be shut down and turned into a kind of industrial museum. But Luigi Di Maio, who succeeded Grillo as leader of the Five-Star Movement, was quick to state that Grillo was expressing his personal opinion and that no formal decision on Ilva would be made without careful consideration.

The Five-Star Movement is the larger member of the two-party government coalition which was installed June 1. Taranto, the city where Ilva is based, is part of a stronghold for the Five-Star Movement, which won 48 percent of the vote there in the March 4 general election.

Nicola Borri, an economics and finance professor at Rome's LUISS University, told Xinhua that "This is shaping up to be a big internal problem for the Five-Star Movement. Leadership would normally be in favor of closing down a dirty plant like Ilva. But Di Maio recognizes the political consequences of doing that to a major employer in a place like Taranto."

Source : Xinhua

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voda 12 juni 2018 15:41

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Tata Steel European Works Council question rationale of tie up with Thyssenkrupp

Reuters reported that Tata Steel’s European works council said it is unconvinced by a planned joint venture with Thyssenkrupp. Tata Steel’s European Works Council (EWC) said that numerous details of the deal still needed to be hammered out before they could endorse a deal. It said “The EWC acknowledges there is an industrial rationale for pursuing this JV, but with the matters outstanding the EWC remains unconvinced that this partnership with Thyssenkrupp would be in the best interests of Tata Steel Europe’s operations and the employees we represent. This situation is deeply regrettable.”

It said its support for the joint venture depended on factors like a moratorium on job cuts until 2022 and no Tata Steel site closures before 2026. It also wants the sale of Tata’s electrical steel subsidiary Cogent to be put on hold.

The remarks deal a fresh blow to Thyssenkrupp boss Heinrich Hiesinger, at the helm of the German steel-to-submarine group for more than seven years, whose plan to sharpen the company’s focus on technology largely depends on the steel transaction.

They are also in line with growing criticism from investors, including US activist fund Elliott, who have pointed out the diverging fortunes of the two groups since the venture was first announced last year and have asked Thyssenkrupp to seek better terms.

Source : Reuters

voda 12 juni 2018 15:43

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Evraz NA CEO urges not to block Kinder Morgon expansion

EVRAZ North America plc is urging the British Columbian government to respect federal approvals and not block Kinder Mor-gan Canada’s Trans Mountain Expansion Project, saying that thousands of Canadian jobs are touched by this project. Mr Conrad Winkler -President and CEO of EVRAZ North America said that “The Company was awarded a contract to produce approximately 275 thousand tons of pipe for this pipeline at our Regina Saskatchewan Operations. The pipe is produced here in Canada by Canadians and uses Canadian raw materials.”

Mr Winkler said that "Manufacturing of the pipe required for construction of the Trans Mountain Expansion Project at EVRAZ facilities in Regina began on October 2017 following the awarding of a contract by Trans Mountain and will continue through May 2019. “This project is real and we are building it with Canadian workers, materials and technology."

Mr Winker said that “EVRAZ North America operations in Canada employ over 2,000 people directly and generate between 6 and 10 times as many indirect jobs throughout the supply chain mainly across Western Canada. We are looking forward to a resolution to this impasse and to continuing production of the most technologically advanced , clean and safe steels for pipelines and oil country tubular goods right here in North America."

Source : Strategic Research Institute

voda 12 juni 2018 15:55

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Steel industry appeal to SC to increasing iron ore ceiling

Deccan Chronicle reported that while the steel industry is starved of iron ore, its key raw material, and has appealed to the Supreme Court to increase the ceiling on iron ore production in the state, about 5.40 lakh metric tonnes of iron ore valued at INR 165 crore is lying unsold with the mines of the Mysore Minerals Ltd in Sandur , Ballari district.

Although the Supreme Court had permitted MML to produce 40 lakh metric tonnes of iron ore every year from its Sandur mines, the state owned company is at present able to produce only around 10 lakh tonnes a year.

Industry insiders said that "In the last six months, MML has sold a meagre 15,000 metric tonnes of iron ore and about 5.40 lakh metric tonnes valued at about 165 crore, is lying unsold in its stockyards.”

Going by the Supreme Court constituted Monitoring Committee and MSTC, which carries out e-auction of iron ore, the Subbarayanahalli Iron Ore Mines and Thimmapanagudi Iron Ore Mines in Sandur e-auctioned 3,30,000 metric tonnes of iron ore fines and 2,14,000 metric tonnes of iron ore lumps between Janaury and May this year, but found takers for only 15,000 metric tonnes of both.

Despite having six senior serving IAS officers on its board of directors, the MML has failed to tap the market and put the PSU back on track. The big question then is why is the MML not able to sell its produce when others are ? Industry insiders say it is not the quality of ore that is to blame but its price.

"MML appears to have turned a blind eye to the market trends and is fixing exorbitant prices that will certainly cost it,"warned an industry observer. And now with the onset of the monsoon, an expert cautions that the huge iron ore stockpile could be washed away in the floods that inevitably follow.

Source : Deccan Chronicle

voda 12 juni 2018 15:56

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Government releases Jharkhand iron ore mining plan

DNA India reported that environment ministry has come out with a plan on 'sustainable iron ore mining ' in Jharkhand's Saranda and Chaibasa, West Singhbhum district and has proposed go and no-go zones, biodiversity hotspots and conservation areas to protect the region's rich Sal forest and over 200 elephants. It has also accepted an annual cap of 64 million tonnes per annum in Saranda-Chaibasa, based on the expert report of Indian Council of Forestry Research and Education.

Only those mining leases falling in the eastern boundary of Saranda have been considered for inclusion in two mining zones and mining leases falling in ten villages across Chaibasa will be considered. The remaining leases, the ministry's plan said, will be closed for mining and kept in abeyance for now. Centre will review their status when mineral deposits in the permitted zones are almost exhausted and appropriate technology is available for their extraction to prevent damage to forest and wildlife.

DNA was the first to report on the draft of the mining plan in April. The report had brought to light that if this plan is finalised, it will affect big-ticket mining projects of giants such as Steel Authority of India (SAIL), a public sector undertaking, Vedanta and JSW Steel Ltd, all of which fall in Ankua forest. In the plan brought out on Friday, the ministry has retained Ankua forest as a no-go mining zone. The Chiria mine in Ankua forest block has India's single largest iron ore deposit, estimated to be about two billion tonnes.

However, the ministry has kept the door open for the big-ticket projects falling in no-go zones. It stated that mining leases in no-go zones and conservation areas "shall be kept in abeyance till the Ministry of Environment, Forest and Climate Change takes a final view on the environmental sustainability of mining in the region after further examination." The ministry, though, has allowed SAIL to continue work on Dhobil mines in the no-go zone in an already broken up area.

As per the ministry's plan, out of 79 forest compartments in Saranda, mining will be permitted in 33 forest compartments across the Ghatkuri, Samta, Karampada, Tirilposi, Thalkobad and Kumdi ranges. In Chaibasa, ten out of 18 villages have been considered for mining. The exact forest area allowed to be mined was not clear as per the ministry's plan. The Ministry has proposed two mining zones, two conservation areas and three critical biodiversity hotspots in the region.

Environment ministry officials were not available for comment.

Before commencement of work, the lease holders would have to obtain forest clearance and environmental clearance from Centre separately. In an important addition to the final plan, the ministry has said that leases smaller than 25 hectares would be cancelled.

Spread over an area of 820 sq km, Saranda forest is home to one of the best Sal forests in the world because of its fast regeneration capacity. It is also home to Singhbhum elephant reserve, the country's first, and sustained around ten tigers until a few decades ago.

In 2014, the Centre had halted clearances for all fresh projects in Saranda region and had asked Jharkhand government to assess the impact of mining in the region. This was done in light of the Justice MB Shah enquiry commission report on illegal mining of iron ore and manganese in Jharkhand.

In the same year, Centre also began the process of identifying inviolate areas in the forest and commissioned two studies; one to fix an annual mining cap and the other for a wildlife management plan. Based on these two expert reports, of the Indian Council of Forestry Research and Education and a multi disciplinary expert committee that was examining the wildlife management plan, the ministry prepared the mining plan.

Source : DNA India

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voda 12 juni 2018 21:41

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Test:

New trade barriers exacerbate global price differentials
How will the latest Chinese issue affect prices?
What could new EU safeguard measures look like?
What effect will 232 have on major US steel consumers?
In this week’s issue: Top News:

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www.kallanish.com Copyright 2018 Kallanish Page 1
Iron Ore 62% Fe / Qingdao CFR USD/t
W-o-w avg change +0.92% 08 June 2018 $ 64.81 07 June 2018 $ 65.02 high 06 June 2018 $ 64.93 05 June 2018 $ 64.27 04 June 2018 $ 63.63 low Average $ 64.53 01 June 2018 $ 64.11 high 31 May 2018 $ 64.16 30 May 2018 $ 63.88 29 May 2018 $ 64.04 28 May 2018 $ 63.50 low Average $ 63.94
Date published: 12 June 2018

Will Turkey sell more rebar to the US?

What is the end-game for Trump’s steel policies?
During the last three months the price differentials for steel products globally have started to take a clear direction as a result of the uncertainty raised by new trade barriers.

The domino effect began with US 232 tariffs. As a result, three months later, some major steel markets such as Europe, Turkey, Russia, China, Mexico, Canada are now subject to a 25% tariff for exports to the US. Other suppliers such as South Korea and Brazil meanwhile have negotiated a system of tariff-free quotas equal in most cases to 70% of the average volumes exported during recent years.

Price trends during the last three months indicate that it is clear that the new trade barriers have started to have an effect. Since the official announcement on Section 232 made at the beginning of March, US HRC prices have gained over $100/tonne. This has therefore accelerated the recovery initiated in the fourth quarter of 2017 when the 232 measures were first announced.

At the opposite side of the spectrum, Russian HRC has lost over $50/t since beginning of March. The Russian steel market could well be the most negatively-affected by the new tariffs imposed by the US together with Turkey. Russia is firmly reliant on exports and used to export some 3 million tonnes/year to the US until 2017.

Meanwhile it is of interest that China, being a relatively small supplier for the US market and having been supported by relatively good domestic demand, has not suffered massively from the new tariffs. As a result, HRC prices for exports from China have lost less than $20/t since beginning of March, remaining well above the levels seen in the first half of 2017.

Within the advanced economies, north European HRC prices have lost some $60/t since beginning of March. This is due both to the persistent uncertainty in the market because of trade issues as well as the depreciation of the euro against the dollar.

It is important to notice also that global iron ore prices have lost between $10-15/t since beginning of March, falling to the current level of $65/t cfr China. During the same period scrap values in Turkey have also lost around $30/t to the current price of $340-350/t cfr Turkey. It is understood that fluctuations in the iron ore market are influenced slightly more by Chinese domestic demand, rather than the global trade issues. Scrap prices however are set to continue suffering from the possible regionalisation of steel supply. Turkish mills are being strongly hit by a fall in exports to the US and the need to find new markets for their products.

The first effects of the new tariffs have already been seen in the market. Further impacts could well be seen following possible decisions by other national and international bodies to limit further imports in response to the US tariffs. European steelmakers are pushing for a new safeguard system based on quotas and similar import restrictions are being discussed in Mexico and could well be followed by other major steelmaking countries. If global trade is impacted significantly we are likely to see diverging trends in terms of prices. Steel net importing areas such as the US and Europe could be impacted by higher prices. Large exporting regions such as the CIS could also be forced to lower prices in order to continue to be competitive following application of the duties.
HRC

From Kallanish

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voda 13 juni 2018 12:13

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Thyssenkrupp praat met Tata over voorwaarden fusiedeal - media

(ABM FN-Dow Jones) Thyssenkrupp heeft gehoor gegeven aan zijn activistische aandeelhouder Elliott Management om te praten met Tata Steel Europe over betere fusievoorwaarden. Dit schreef de Duitse zakenkrant Handelsblatt dinsdagavond.

Elliott bekritiseerde het bestuur van het Duitse staalbedrijf Thyssenkrupp. De Amerikaanse investeerder vindt het plan om de Europese staalactiviteiten samen te voegen met die van Tata een goed idee, maar stelt dat de Duitsers hiervoor betere voorwaarden moeten krijgen. Volgens Elliott zijn de omstandigheden veranderd sinds het plan om samen te gaan werd opgesteld. De staalactiviteiten van Thyssenkrupp zijn recent verbeterd, terwijl die van Tata zwak waren.

Nu zijn de Duitsers in gesprek met Tata Steel Europe over een betere deal. Wel zou het de bedoeling moeten blijven, zoals het oorspronkelijke plan, dat Thyssenkrupp en Tata Steel ieder de helft in bezit krijgen van de nieuwe onderneming.

Door: ABM Financial News.
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voda 13 juni 2018 13:44

0

IBC rule barring defaulted promoters can’t be back dated - NCLT

Business Line reported that in a development that could significantly impact the ongoing insolvency resolution processes, the Mumbai Bench of the National Company Law Tribunal recently ruled that the law banning defaulted promoters from bidding for their own company cannot be applied in cases filed before November 23, 2017. NCLT Justice MK Shrawat, in an order dated June 4, 2018 related to the insolvency case of Wig Associates, said “Any amendment to a statute affecting the legal rights of an individual must be presumed to be prospective unless it is made expressly or is impliedly retrospective. When a repeal of an enactment is followed by fresh legislation, such legislation does not affect the substantive rights of parties on the date of the suit or adjudication of the suit unless such legislation is retrospective and a court of appeal cannot take into consideration a new law brought into existence after the judgement appealed from has been rendered because the rights of the parties in an appeal is determined under the law in force on the date of suit.”

Advocate Amir Arsiwala, who represented Wig Associates, told BusinessLine that the insolvency resolution processes are continuous proceedings and cannot be halted, altered or changed till their finalisation; hence, an amendment to the IBC law cannot be made retrospective. He said “It is unfair to alter the rules of a game in a playground once the game has started.”

The ruling will give an opportunity to Essar Steel and Bhushan Steel promoters who had almost recast their loan under the Sustainable Structuring of Stressed Assets before their companies were dragged into insolvency proceeding under IBC.

The Centre had introduced a new section to the Insolvency and Bankruptcy Code on November 23, 2017 through an ordinance. Section 29-A prescribed that an entity that is connected to the promoters or the management of the company going through insolvency process cannot submit a bid.

Source : Business Line

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