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ArcelorMittal wint strijd om Indiaas Essar

Gepubliceerd op 26 okt 2018 om 06:28 | Views: 195

ArcelorMittal 25 okt
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MUMBAI (AFN/BLOOMBERG) - Staalgigant ArcelorMittal heeft de strijd over zijn bankroete Indiase branchegenoot Essar Steel gewonnen. Dat bleek vrijdag. Een comité van schuldeisers is definitief voorstander van het overnamevoorstel van het in Amsterdam genoteerde bedrijf.

Dat meldt CNBC-TV18 op basis van ingewijden en is inmiddels bevestigd door Arcelor-partner Nippon Steel . Er is nu aan de partijen gevraagd om een intentieverklaring te tekenen. Naar verluidt zal voor de opening van de Europese beurshandel een verklaring naar buiten worden gebracht.

Om Essar was veel te doen, omdat het staalbedrijven er veel aan is gelegen om hun aanwezigheid in groeimarkt India te vergroten. Volgens eerdere berichtgeving heeft Arcelor voorgesteld vooraf 395 miljard roepie (circa 4,7 miljard euro) te betalen aan de banken van het failliete bedrijf om schulden af te lossen. Daarna zouden de schuldeisers nog 25 miljard roepie betaald krijgen door de staalreus en volgt er een kapitaalinjectie van 80 miljard roepie. Daarmee lopen de totale kosten voor de overname op tot een kleine 500 miljard roepie.
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Essar Steel shareholders offer to clear all dues - Report

Financial Express reported that Essar Steel shareholders have offered to pay an aggregate of INR 54,389 crore including INR 47,507 crore upfront cash payment to clear all dues owed to lenders, nearly 14 months after the company was admitted for the insolvency process. "The aforesaid plan includes an upfront cash payment of Rs 47,507 crore to all creditors, including Rs 45,559 crore to the senior secured financial creditors, i.e. 100 percent recovery. Commenting on the proposal, Prashant Ruia, director, Essar, said the value and quality of the asset can be ascertained from the interest shown and value offered by all the global steel majors. He said "We believe our current proposal will provide 100 percent recovery to secured creditors and lenders, and maximum recovery for unsecured creditors. This is well in excess of that offered in the proposal under consideration, and is in line with value maximisation, which is the underlying principle of the Insolvency and Bankruptcy Code (IBC) process.”

The offer made by Essar Steel shareholders is higher than ArcelorMittal’s total offer of INR 50,000 crore, but it will stand only if the debt-laden company exits the IBC proceedings as Section 29A bars wilful defaulters, defaulter promoters and related parties from acquiring other NPA accounts.

Within hours of Essar Steel shareholders offering to clear all dues of lenders for withdrawal of the insolvency process, ArcelorMittal said that the withdrawal from the IBC process is not possible as expressions of interest have already been issued. It said “Our understanding is that the IBC’s section 12A does not apply to the resolution process of Essar Steel. Section 12A clearly states that any application to withdraw must be submitted prior to issuance of the invitation for expressions of interest and must be accompanied by a bank guarantee for the specified amounts. Moreover, the application to withdraw from the IBC process must be accompanied by the bank guarantee. We expect the process to continue as per the clear terms of the IBC.”

ArcelorMittal was recently declared preferred bidder by lenders of Essar Steel after it committed to paying back outstanding dues of Uttam Galva Steel and KSS Petron. On October 4, the Supreme Court, while declaring bids submitted by both ArcelorMittal and VTB-backed Numetal ineligible under section 29A, gave another chance to them up on clearing dues.

Source : Financial Express
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GPI Textiles and Deutsche Bank wants ArcelorMittal to pay their dues too

Business Standard reported that the resolution professional (RP) of GPI Textiles has written to the lenders of Essar Steel, asking ArcelorMittal should pay the firm its dues. The resolution professional of GPI Textiles, which is owned by Pramod Mittal, the younger brother of Laxmi Mittal, has also filed a caveat in Ahmedabad bench of National Company Law Tribunal (NCLT) asking for a hearing. The lenders of GPI Textiles, especially Phoenix ARC Pvt Ltd and the State Bank of India (SAM Branch of Chandigarh), claim that ArcelorMittal has to pay the dues as the promoters of the company are related parties. Financial creditors have over INR 500-crore claim on GPI Textiles. Pramod Mittal was promoter of four companies including Ispat Profiles and Gontermann Peipers, both of which too have failed to repay their loans. ArcelorMittal had said it is not liable for Pramod Mittal’s loan defaults.

Telegraph also reported that Deutsche Bank on Wednesday demanded that the Lakshmi Mittal company pay it back USD 14 million (INR 100 crore) that Uttam Galva owes to the lender. Questioning the process followed by ArcelorMittal India to become an eligible resolution applicant, the Singapore branch of Deutsche Bank has asked ArcelorMittal to immediately pay off the money due to it or face legal action. It also questioned the lenders for approving the eligibility. According to the letter sent by Deutsche Bank on October 23 and reviewed by The Telegraph, two major objections have been raised. Lenders to Uttam Galva assigned the loan on their books to ArcelorMittal or its nominee. This process was followed by the lenders and ArcelorMittal because the latter is no longer a shareholder of Uttam Galva. Deutsche Bank said ArcelorMittal and the lenders did not follow RBI guidelines in assigning the loan. Moreover, the assignment of the loan may not make Uttam Galva a standard asset. It further said that the Supreme Court judgment of October 4 had stated that IBC norms required the payment of the entire loan due and not the assignment of loan, which means mere transfer from one lender to the other. Second, Deutsche Bank argued that paying off loans of lenders based only in India was not enough. All dues, even to foreign lenders, must be paid to become eligible.

ArcelorMittal India had paid INR 7,469 crore on account of the overdue loans of Uttam Galva and KSS Petron to become an eligible resolution applicant for Essar Steel. But Deutsche Bank’s foreign currency loan to Uttam Galva remains outstanding.

Sources said a few more institutions may challenge the CoC’s decision to declare ArcelorMittal as an eligible resolution applicant even as the lenders are voting on the plan submitted by the world’s largest steel producer to revive Essar.

Source : Telegraph
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Quality control order will soon cover all steel products - Steel Minister

Business Line reported that India’s Minister for Steel Chaudhary Birender Singh said that the quality control order backed by Bureau of Indian Standards ratings will soon cover all steel products. Speaking at the first ISA Steel Conclave, Mr Singh said “Sixteen more steel products have been brought under the ambit of the quality control, taking the percentage of steel products under quality regime to 86 per cent. Our goal of 100 per cent quality in steel industry is not far now.”

Responding to queries regarding a recent report noting the rampant usage of inferior quality Thermo-Mechanically Treated (TMT) bars, Mr Singh said, “We have introduced Bureau of Indian Standards specifications to cover almost 86 per cent of all steel products. The way things are going these issues will soon be eliminated.”

This report by the First Construction Council had noted that companies which are manufacturing the sub-standard quality of TMT bars need to correct it immediately and they should also examine the entire process. According to the report, out of 26 brands which manufacture TMT bars, 18 brands were found to have quantity of sulphur and phosphorous higher than what was required, making the bars of a substandard quality. The finding came out after the council analyzed 66 TMT bar samples which were manufactured by 26 brands. Pratap Padode, Founder-President, First Construction Council said, “The construction core is being subject to a mockery through the use of inferior quality TMT rebars. Kolkata bridge fall, a foot over bridge collapse and caving-in of a car parking wall in Mumbai indicate that there is a dire need for better quality raw materials to enhance the life of concrete. Primary producers who use billets to produce the TMT bars should increase their capacity.”

Source : Business Line
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Tata Steel may stick to its offer for Bhushan Power and Steel - MD

PTI reported that Tata Steel indicated that it was unlikely to raise its INR 17,000 crore bid for debt-ridden Bhushan Power and Steel. When asked if Tata Steel was still keen on Bhushan Power and Steel, company MD T V Narendran said, "At the price we have bid. What we have said is that process has been compromised. It is not about who bid. Because earlier when we went to NCLAT we felt that Liberty Steel had bid after the last date which we felt was a compromise of the process. JSW has also bid after the last date so that's our only point that the process has been compromised. There is nothing against any of our peers. So, our agony is that the process has been compromised and court will decide based on it immediately.”

Tata Steel reportedly has objected to lenders of Bhushan Power and Steel Ltd (BPSL) finalising a bid of its rival JSW Steel Ltd. Tata Steel last month submitted before the NCLAT that lenders of BPSL permitted rival JSW Steel to change basic parameters of bids after submission. Around 90 per cent of lenders of Bhushan Power and Steel Ltd (BPSL) has voted in favour of JSW Steel's bid of more than INR 19,000 crore, revised from original INR 11,000 crore.

Source : PTI
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Belgian Infrabel awards British Steel four-year rail supply contract

British Steel has secured a major new contract with Infrabel, Belgium’s national railway operator. The four-year agreement is for the maintenance and renewal of the Belgian rail network and will see British Steel supply between 35,000 and 40,000 tonnes of rail a year – more than 3,000km of rail over the duration of the contract. The steel for the rails will be manufactured at British Steel’s headquarters in Scunthorpe, England, before being transported to the company’s state-of-the art rail rolling facility in Hayange, France. From Hayange, a shuttle service will deliver train loads of the rail direct to Infrabel’s welding plants in varying lengths including 100 metres. The main grade of rail will be British Steel’s R260 although there’ll also be smaller volumes of its Stress-Free heat-treated and switch rails. Deliveries are scheduled to start in January 2019.

Richard Bell, British Steel’s Commercial Director Rail, said: “We’re delighted to have been awarded this contract and look forward to working in partnership with Infrabel over the next four years. We operate in a highly competitive market so it’s extremely pleasing that, after a short break, Infrabel have again named us as their main supplier. It’s a great endorsement of our products and services and securing another contract with a national network operator is a source of enormous pride.”

Today’s announcement comes a short time after British Steel announced it had secured a two-year contract extension with Network Rail, the company operating and maintaining the UK’s rail infrastructure. The agreement will see it supply Network Rail with over 200,000 tonnes (4,000km) of rail.

Source : Strategic Research Institute
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US steel imports in September decline by 26pct MoM - AISI

Based on preliminary Census Bureau data, the American Iron and Steel Institute (AISI) reported that the US imported a total of 2,249,000 net tons (NT) of steel in September 2018, including 1,854,000 net tons (NT) of finished steel (down 25.9% and 8.6%, respectively, vs. August final data). Year-to-date (YTD) through nine months of 2018, total and finished steel imports are 26,158,000 and 20,079,000 net tons (NT), down 12.0% and 12.5%, respectively, vs. the same period in 2017. Annualized total and finished steel imports in 2018 would be 34.9 and 26.8 million NT, down 8.5% and 9.4%, respectively, vs. 2017. Finished steel import market share was an estimated 20% in September and is estimated at 24% YTD.

Key finished steel products with a significant import increase in September compared to August were standard pipe (up 26%), hot rolled sheets (up 25%), and sheets and strip all other metallic coatings (up 23%). Major products with significant year-to-date (YTD) increases vs. the same period in 2017 include hot rolled sheets (up 21%) and plates in coils (up 21%).

Source : Strategic Research Institute
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Primetals Technologies supplies EAF Quantum electric arc furnace and ladle furnace to Heyuan Derun

Primetals Technologies has received an order from Chinese steel producer Heyuan Derun Iron & Steel Co Ltd to supply an EAF Quantum electric arc furnace and a ladle furnace for its reinforcing steel plant in Heyuan, Guangdong Province. The EAF Quantum furnace is designed to handle scrap steel of vary varied composition and quality. The electrical energy requirement of the electric arc furnace is extremely low because the scrap is preheated. This reduces both the operating costs and the CO2 emissions. The twin ladle furnace sets the desired steel grades and the correct casting temperature. The new furnaces are scheduled to be commissioned in the third quarter of 2019.

Heyuan Derun is a manufacturer of steel products. The company mainly produces and sells steel bars and special rounds for the construction industry. For the new EAF Quantum electric arc furnace and the twin ladle furnace, Primetals Technologies will supply the complete mechanical and electrical process equipment and the automation technology. This includes the automated scrap yard management, the automated charging process, automation of the oxygen injection and sand refilling, as well as the Level 2 automation which makes the plant ready for Industry 4.0.

The EAF Quantum developed by Primetals Technologies combines proven elements of shaft furnace technology with an innovative scrap charging process, an efficient preheating system, a new tilting concept for the lower shell, and an optimized tapping system. This all adds up to very short melting cycles. The electricity consumption is considerably lower than that of a conventional electric arc furnace. Together with the lower consumption of electrodes and oxygen, this gives an overall advantage in the specific conversion cost of around 20 percent. In comparison to conventional electric arc furnaces, total CO2 emissions can also be reduced by up to 30 percent per metric ton of crude steel.

Source : Strategic Research Institute
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Dolvi Minerals and Metals, Dolvi Coke, JSW Steel Processing and JSW Steel (Salav) to merge with JSW Steel Limited

JSW Steel announced that the Board of Directorsof the Company at its meeting held on October 25, 2018, has considered and approved the Scheme of Amalgamation pursuant to sections 230 - 232 and other applicable provisions of the Companies Act, 2013, providing for the merger of its wholly owned subsidiaries, Dolvi Minerals and Metals Private Limited, Dolvi Coke Projects Limited, JSW Steel Processing Centres Limited, and JSW Steel (Salav) Limited with JSW Steel Limited

The Scheme would be subject to the requisite statutory / regulatory approvals including the approval of the National Company Law Tribunal (Mumbai Bench).

Source : Strategic Research Institute
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Iron Hill's 3km south of the depleted Extension Hill pit

The focus of activity during the quarter remained on production from Iron Hill, 3km south of the depleted Extension Hill pit. The operation continues to run at full capacity, with mining on track for completion later in the current December 2018 quarter. Ore sales from Iron Hill are expected to conclude in early 2019, after which the site will move into closure as planned. Sales of lump and fines from Iron Hill were 19% higher than in the prior quarter, reflecting the mine schedule, with lump sales accounting for approximately 53% of total DSO sales, compared with 50% in the prior quarter. Site all-in cash costs1 for Extension Hill/Iron Hill averaged $37/wmt in the period compared with USD 43/wmt in the preceding quarter.

Significantly, the site has maintained an excellent safety record, passing five years without a Lost Time Injury (“LTI”) in early October. The Company’s Geraldton Port operations have also maintained an excellent safety performance to remain LTI-free over the last nine years.

At the end of September, approximately 74,000 wmt of crushed high grade product was stockpiled at the mine. Stockpiles of uncrushed high grade Iron Hill material totalled 170,000 wmt and stockpiles of uncrushed lower grade material totalled 3.1 Mwmt grading 50-55% Fe. Crushed ore stockpiles at the Perenjori rail siding totalled approximately 179,000 wmt of high grade ore.

The average grade of both Iron Hill lump and fines sold during the quarter was 60.2% Fe, compared with lump and fines grades of 60.4% Fe and 59.7% Fe respectively in the June quarter. DSO product grades are expected to remain around current levels over the remainder of the short Iron Hill mine life.

As stated in the Company’s financial results2, the total closure and rehabilitation cost for the combined Extension Hill and Iron Hill mine sites is provisioned at approximately $15 million (including site personnel redundancy costs), of which approximately $8 million is expected to be spent during 2018/19, commencing in the December 2018 quarter.

1 Site all-in cash costs are reported FOB and include royalties and capital expenditure, but are before corporate cost allocations.

As was also stated in the financial results, following achievement of a contractual rail volume threshold at Extension Hill during the 2017/18 year, Mount Gibson has become entitled to receive a partial refund of historical rail access charges from railway leaseholder Arc Infrastructure based upon the future usage by certain third parties of specific segments of the Perenjori to Geraldton railway line. This entitlement commences upon termination of the Company’s existing rail agreements – which is now expected to occur in early 2019 – and is calculated at various volume-related rates, and capped at a total of approximately $35 million (subject to indexation) and a time limit expiring in 2031. Receipt of this potential future refund is not certain and is fully dependent on the volumes railed by third parties on the specified rail segments.

Source : Strategic Research Institute
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Ohio steel mill re-openings under Donald Trump - Politifact Check

Politifact reported that US President Donald Trump, who had said in his 2017 inaugural address that rusted-out factories were scattered like tombstones across the landscape of our nation, recently, claimed some of Ohio’s industrial jobs had since been resurrected. He said the United States was now taxing the hell out of the dumpers that were hurting your steel industry. Trump said at an Oct 12 rally in Lebanon Ohio "All across Ohio, steel mills are reopening, and we are putting our coal miners back to work. One of the things we’re most proud of. When I came into office, steel was dead. Steel was dead. Now they're opening up plants, US Steel, Nucor, they're opening up plants all over the country. Big ones. New ones. We're taxing the hell out of the dumpers. You know, we had the dumpers who were hurting your steel industry."

Politifact looked at whether steel mills across Ohio had, in fact, reopened. We found evidence of one idling mill reopening and a handful of steel companies making additional investments in Ohio. Trump’s claim of mills across the state reopening is exaggerated, but steel companies are making new investments.

In June 2018, Republic Steel announced plans to restart its furnace in Lorain, Ohio, after it had idled since 2016. It partially reopened in September 2018, bringing 80 new jobs to the city. The company credited the steel tariff. Republic Steel is also adding a shift at its Canton location.

JSW Steel USA initially planned to restart the Mingo Junction electric-arc furnace in September 2018. On Oct. 11, the company said it would restart in a "matter of weeks." The furnace has been idle since 2009. Plans to reopen precede Trump’s tariffs.

In January 2017, before the tariff, Charter Steel announced plans to build a new $150 million mill in Cuyahoga Heights, Ohio.

In April 2017, Nucor Corp. announced it would invest $85 million to upgrade the rolling mill at its steel bar mill in Marion, Ohio.

In Ohio, there are 7,700 iron, steel mill and ferroalloy manufacturing jobs as of Sept. 1, which is roughly the same amount as there were in January 2017. Ohio State University professor Ned Hill, an economist who studies American manufacturing, said "When you look at the employment numbers in Ohio, you cannot find an increase in employment from the June imposition of the steel tariffs or from when the rumors started kicking around in January. The notion that there are hundreds of mills reopening or ready to reopen, there’s not much behind that.”

Politifact found data for employment in the primary metals-producing sector, which incorporates five subcategories: iron and steel mills, steel product manufacturing from purchased steel, aluminum production and processing, production and processing of metals other than iron and aluminum, and foundries. Nationwide employment in primary metals manufacturing bottomed out from 451,600 in early 2008 to 347,300 in early 2010 after the recession and global economic crisis. By the end of 2014, it had rebounded to 402,600 as a result of the Obama economic stimulus before falling again to 368,100 in January 2017 due to lower oil prices and a flood of imports. Employment has since risen to a projected 382,300 for September 2018, largely the result of trade policies that have stabilized the domestic market

Politifact ruling “Trump said that steel mills were reopening across Ohio. While experts have mixed impressions about the long-term job growth from Trump’s steel tariffs, we found evidence of a handful of steel companies investing in their Ohio plants and at least one example of an idling mill reopening. We rate this Half True.”

Source : Politifact
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Sinosteel Equipment & Engineering to modernize coking production at MMK

Magnitogorsk Iron and Steel Works (MMK) and Sinosteel Equipment & Engineering Co (China) signed a memorandum of intent and mutual cooperation, following the completion of a tender, in order to implement the comprehensive reconstruction of MMK’s coking and by-product production. The project involves the construction of coke oven battery complex No 12, the reconstruction of a plant for capturing and processing chemical products, as well as the construction of a biochemical installation as part of MMK’s coking and by-product production.

The reconstruction of coking and by-product production is part of MMK’s programme aimed at modernising sintering/blast-furnace/coking production, the purpose of which, in accordance with the Company’s 2025 Strategy, is to increase the efficiency of first processing stage, reduce production costs and improve environmental safety. In particular, the introduction of the new coke oven battery No. 12 will make it possible to decommission outdated coke batteries Nos. 1, 2 and 3, significantly improving ecological conditions in Magnitogorsk.

The memorandum was signed by Pavel Shilyaev, CEO of PJSC MMK, and Lu Pengcheng, Chairman of the Board of Directors of Sinosteel Equipment & Engineering Co Ltd. The parties agreed to conclude contracts for the construction of facilities as part of the project for the reconstruction of coking and by-product production at MMK.

Source : Strategic Research Institute
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Posco to support 5,500 job seekers over 5 years

Korea Herald reported that Posco will support 5,500 job seekers over the next five years by offering job training as part of its vision for mutual growth with society, the company said Thursday. Its three education programs are an artificial intelligence and big data academy for young adults, hands-on experience of working in the corporate world and an entrepreneur incubation school. For participants to focus on learning, Posco will cover accommodations and provide an allowance of between KWR 500,000 (USD 440) and KWR 1 million. Posco said “Through Posco’s training programs we will support 5,500 job seekers to land job opportunities at Posco Group and other companies. This is part of the ‘With Posco’ vision that aims to achieve mutual growth with members of society.’

Through the three-month AI and big data academy, Posco plans to nurture 200 professionals in the course of five years. Those who complete the program with outstanding accomplishments will be given job opportunities at Posco Group and research internships at Postech.

Source : Korea Herald
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Metalloinvest and Linde Group to build new air separation unit at Ural Steel

Metalloinvest signed a long-term agreement with The Linde Group to supply air separation products to Ural Steel, part of Metalloinvest. Linde will invest approximately EUR 50 million in the construction of a new Air Separation Unit (ASU) #6 for oxygen production at Ural Steel. ASU #6 will produce oxygen, nitrogen and argon and Linde will also provide maintenance of the unit. Metalloinvest will invest over RUB 700 million in the construction of infrastructure required for ASU #6: pipelines for the transportation of air separation products and service water, power supply lines, etc. The Air Separation Unit #6 will have capacity to produce up to 20,000 cubic meters of industrial oxygen per hour. The launch of the unit is scheduled for the first quarter of 2021.

Currently the oxygen production for blast furnace, electric steel shop and other divisions of Ural Steel is supplied by the Air Separation Units #4 and #5. ASU #4 will be decommissioned after the launch of the Air Separation Unit #6 due to the expiration of the unit’s service life.

Source : Strategic Research Institute
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ABS awarded worldsteel STEELIE AWARD for Danieli Rotoforge technology

The World Steel Association (worldsteel) Steelie Awards recognised member companies or individuals for their contributions to the steel industry over a one-year period. On October 16, during the worldsteel Annual Dinner held in Tokyo, special steel producer ABS received the prestigious “Steelie Award” as “Innovation of the year”. Developed and supplied by Danieli, and installed at ABS in Italy, the new Rotoforge (RF) is a revolutionizing technology for the production of heavy round and square bars up to 500 mm, overcoming the traditional limitations of rolling and forging.

Rotoforge is a hybrid production method, which has a similar production process and characteristics to a rolling mill through the use of a forge, as it exerts much greater mechanical pressure on the individual pieces than those exercisable by classic rolling mills. This approach ensures internal structural characteristics of steel at par with forged products.

Traditional hot-rolled mills achieve a maximum reduction per rolling pass of only about 60-70 mm, for each transit of the charge on the section with opposed cylinders (lacking however, optimal homogeneity in the heart of the piece).

Rotoforge allows a higher reduction per rolling pass – up to 200 mm for each transit. The use of large rolls and the consequent reduction of feeding angles allows for a reduction in the number of rolling passes required even for heavier starting products, thereby improving productivity.

Overall, the internal soundness of the bar, commonly measured using ultrasound methods and expressed in FBH (flat bottom hole), is close to 2 mm thanks to the RF process, typical of forged products. In comparison, rolled products settle at values of around 10 mm FBH.

The Rotoforge operation at ABS is the first installation of this kind in the world.

Source : Strategic Research Institute
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JSW Steel delivers highest ever half yearly EBIDTA of INR 10,011 Crores

JSW Steel Limited has reported its results for the Second Quarter and the Half Year ended 30th Sep, 2018.

Key highlights of the quarter:

Standalone Performance:
Crude Steel production: 4.18 million tonnes, up by 6% YoY
Saleable Steel sales: 3.96 million tonnes, up by 1% YoY
Revenue from operations: INR 19,669 crores, up by 28% YoY
Operating EBITDA: INR 4,802 crores, up by 64% YoY
PAT: INR 2,284crores, up by 170% YoY

Consolidated Performance:
Quarterly Saleable Steel sales: 3.91 million tonnes lower by 1% YoY
Revenue from operations: INR 21,552 crores, up by 25% YoY
Operating EBITDA: INR 4,906 crores, up by 62% YoY
PAT : INR 2,087 crores, up by 150% YoY
Net Debt to Equity : 1.46x and Net Debt to EBIDTA : 2.35x

Operational Performance:

Zie pdf

Crude Steel production during the quarter increased by 6% YoY to 4.18 million tonnes aided by higher capacity utilization at Vijayanagar and Salem works.

Standalone Saleable steel sales volume for the quarter was up by 1% YoY to 3.96 million tonnes. The Company liquidated a large part of the inventory that was built-up during the previous quarter and consequently sales volumes increased by 3% QoQ during the quarter.

Consolidated Saleable Steel sales stood at 3.91 million tonnes during the quarter, driven by 14% increase in offtake from OEM's and favorable international markets. The company strategically focused on increasing domestic sales volume, which witnessed a growth of 11% YoY in the quarter. Sales of value added and special products (VASP) accounted for 55% of total sales volumes and sales to automotive customers increased by 36% YoY during the year.

JSW Steel Coated Products:
During the quarter, JSW Steel Coated Products registered a production volume (Galvanised/Galvalume products) of 0.46 million tons and sales volume of 0.45 million tonnes. Revenue from operations and Operating EBITDA for the quarter stood at ^ 3,144 crores and ^ 88 crores respectively. It reported a Net Profit after Tax of 13 crores for the quarter.

US Plate and Pipe Mill:
The US based Plate and Pipe Mill facility produced 80,241 net tonnes of Plates and 19,877 net tonnes of Pipes, reporting a capacity utilization of 34% and 14%, respectively, during the quarter. Sales volumes for the quarter stood at 75,179 net tonnes of Plates and 19,884 net tonnes of Pipes. It reported an EBITDA of $5.50 million for the quarter.

Source : Strategic Research Institute
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'Lager resultaat voor Aperam'

Gepubliceerd op 29 okt 2018 om 12:42 | Views: 1.044

Aperam 16:13
31,14 +0,25 (+0,81%)

AMSTERDAM (AFN) - Roestvrijstaalconcern Aperam heeft naar verwachting in het derde kwartaal een lager bedrijfsresultaat behaald dan in de voorgaande periode. Bij de bekendmaking van de cijfers over het tweede kwartaal had Aperam al aangegeven dat het resultaat lager zou uitvallen vanwege de traditionele seizoensafzwakking in Europa. Aperam publiceert dinsdag nabeurs resultaten.

Uit een consensus van analistenramingen opgesteld door Bloomberg komt het bedrijfsresultaat (ebitda) uit op ruim 121 miljoen euro, tegen 150 miljoen euro in het tweede kwartaal. Voor de omzet wordt in doorsnee een bedrag van meer dan 1,2 miljard euro geraamd, ongeveer gelijk met de voorgaande periode.

Bij de bekendmaking van de cijfers over het tweede kwartaal wees Aperam op verbeterde operationele prestaties, mede dankzij een gezonde vraag naar roestvrij staal in Brazilië en Europa. Wel blijven de marktomstandigheden uitdagend, onder meer door de hoge import in Europa, aldus het bedrijf destijds.

Tragere verbetering

Overigens wees Goldman Sachs onlangs in een rapport ook op de uitdagingen voor Aperam. Volgens Goldman staan de prijzen voor roestvrij staal onder druk. Dit komt onder meer door de goedkopere prijzen voor ruwe materialen. Die zorgden er op hun beurt voor dat de prijs van roestvrij staal is gedaald. De bank verwacht voor Europese roestvrijstaalproducenten vanaf de tweede helft van 2019 een tragere verbetering dan eerder voorzien.

Het aan de MidKap genoteerde Aperam is bezig met een programma om in 2020 de jaarlijkse kosten met structureel 150 miljoen euro te verlagen.
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Committee of Creditors approves ArcelorMittal’s acquisition of Essar Steel

ArcelorMittal announced Essar Steel India Limited’s Committee of Creditors has voted to approve the Company’s acquisition of ESIL. ESIL’s Resolution Professional, on behalf of the CoC, has issued the Company with a Letter of Intent stating that the Company has been identified as the Successful Applicant. ArcelorMittal said “Further to ArcelorMittal being named the H1 Resolution Applicant (the preferred bidder) on 19 October 2018, ESIL’s CoC has now approved the Company’s Resolution Plan for ESIL, with the LOI identifying it as the ‘Successful Resolution Plan’. The Resolution Plan includes an upfront payment of INR 42,000 crore (*c. USD 5.7 billion) towards ESIL’s resolution debt, with a further INR 8,000 crore (*c. USD 1.1 billion) of capital injection into ESIL to support operational improvement, increase production levels and deliver enhanced levels of profitability.

ESIL is an integrated flat steel producer, and the largest steel company in western India. Its current level of annualised crude steel production is c. 6.5 million tonnes. ESIL also has iron ore pellet facilities in the east of India, with current annual capacity of 14 million tonnes per annum. ArcelorMittal’s Resolution Plan details:

The Company’s intention to increase ESIL’s finished steel shipments to 8.5 million tonnes over the medium-term. This will be achieved by initially completing ongoing capital expenditure projects and infusing expertise and best practice to deliver efficiency gains, and then through the commissioning of additional assets, while simultaneously improving product quality and grades to realise better margins;

A long-term aspiration to increase finished steel shipments to between 12 and 15 million tonnes through the addition of new iron and steelmaking assets, in order that ESIL can play an active role and fully benefit from the anticipated growth in the Indian steel industry.

In-line with ESIL’s corporate insolvency process, the Company’s Resolution Plan must now be formally accepted by India’s National Company Law Tribunal (‘NCLT’) before completion, which is expected before the end of 2018.

After completion, ArcelorMittal will jointly own and operate ESIL in partnership with Nippon Steel & Sumitomo Metal Corporation in-line with the joint venture formation agreement signed with NSSMC on 2 March 2018. ArcelorMittal and NSSMC expect to finance the joint venture through a combination of partnership equity (one-third) and debt (two-thirds), and ArcelorMittal anticipates that its investment in the joint venture will be equity accounted.

Source : Strategic Research Institute
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First ISA Steel conclave held in New Delhi

“Industry aims at taking India's steel production capacity to 300 million tonnes by 2030” Mr Birender Singh, Union Minister of Steel said at the launch of the ISA Steel Conclave in New Delhi. In a strong move to bring the steel market influencers together, Indian Steel Association and Messe Frankfurt India (MFI) launched the first – The ISA International Steel Conclave 2018. The two-day forum opened at The Lalit in New Delhi, bringing over 150 crème-de-la-creme delegates and speakers including steel industry giants from JSW Group, Tata Steel, JSPL, Steel Authority of India Ltd, Rashtriya Ispat Nigam Lt, Essar Group among others.

The industry’s senior leadership graced the occasion including:
1. Mr T.V. Narendran, Global CEO & Managing Director, Tata Steel Ltd.
2. Mr Naveen Jindal, Chairman, Jindal Steel and Power Ltd
3. Mr Anil Chaudhary, Chairman, Steel Authority of India Ltd
4. Mr PK Rath, Chairman-cum-Managing Director, Rashtriya Ispat Nigam Ltd.
5. Mr Saraswati Prasad, Special Secretary and Financial Advisor Ministry of Steel, Government of India

Emphasizing on the sector’s growth and crude steel production capacity which went up by 6% from last year, Mr Birender Singh said that “2018 has been a year of new beginnings for the industry. In the first quarter, we surpassed Japan to become the second largest producer of steel in the world. We also achieved 52 million tonnes of crude steel production which was up by 6 per cent from last year. The industry now needs to be more pro-active in introducing quality innovations that attract global opportunities and consumers. This is an important event as top steel makers are here working to shape, challenge and transform steel industry of India”

Mr Naveen Jindal, Chairman Jindal Steel and Power Ltd, said that ”To achieve steel production targets for 2030, India’s cost competitiveness through labour and iron ore which are its strengths should not get diluted. I would like to thank ISA & Ministry of Steel for bringing together the stakeholders to take these discussions forward.”

Also voicing industry challenges, Mr TV Narendran, Global CEO & Managing Director of Tata Steel Ltd ”All developed countries have strong equipment manufacturing set-up and this is the kind of eco-system we need to create in India. The industry needs to learn from the auto sector who has achieved tremendous scale and productivity in last 25 years. We need to build capacities which are environment friendly and sustainable. This event was the need of the hour to take up challenges that can create inclusive growth.”

Source : Strategic Research Institute
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EU steel market overview - Eurofer

EU28 apparent steel consumption grew by 4.4% year-on-year in the second quarter of 2018. Healthy levels of real steel consumption, in combination with stockbuilding in the steel distribution chain in this period, led to this growth. In the second quarter of 2018 domestic deliveries from EU mills to the EU market rose by 3.7% year-on-year. Third country imports rose by 9.8% compared with the same period of 2017 and surpassed the already extremely high level of imports registered in the first quarter of 2018 by almost 5%. The share of imports in EU apparent consumption rose from 23.2% in the first quarter to almost 25% in the second quarter. The continued, marked increase in import supply in the second quarter appears to confirm previous concerns about third country exporters pushing extra volumes to the EU market in anticipation of safeguard measures, and a willingness of buyers to take certain speculative risks. EU steel market fundamentals are expected to remain supportive to a continued but moderate increase in apparent steel consumption. However, ongoing trade frictions with the US, and cooling global demand, suggest that external risks could continue to climb, which in turn would increase uncertainty and lead to weakening prospects for EU steel users. Moreover, other trade barriers which are being considered by the Trump administration, such as tariffs on EU automotive exports to the US, could lead to a further escalation of the trade dispute and have a damaging impact on steel demand. Nevertheless, EU apparent steel consumption is forecast to rise by 2.2% in 2018 and by a further 1.1% in 2019

EU steel-using sectors - Business conditions in the second quarter of 2018 were similar to those in the first quarter of the year. All steel-using sectors in the EU except steel tube industry registered a solid increase in production activity. Prospects for the EU steel-using sectors in 2018 and 2019 are rather favourable. Despite a mild moderation in economic momentum, framework conditions for steel using sectors are expected to remain supportive to continued but somewhat slower growth of production activity. Domestic demand rather than exports will be the main engine of growth over this period. However, the global economic context has become more uncertain due to rising protectionism and the risk of escalating trade tensions. This might have a negative impact on business confidence and investment. Output in EU’s steel-using sectors is forecast to grow by 3.5% in 2018 and by 1.8% in 2019.

EU economic context - GDP data for the second quarter of 2018 showed the continuation of slower but steady economic growth in the EU. While investment rebounded strongly from its weak first quarter performance, there was a negative contribution of net trade, in spite of a recovery in exports. This suggests that the downside risks for exports have begun to materialise, as a consequence of the current slump in international trade and a delayed impact of the stronger euro. Although confidence indicators weakened slightly further in the third quarter of 2018, economic sentiment continues to run at an elevated level – well above its long-term average, consistent with ongoing and broad-based but more moderate economic growth in the EU. EU GDP is expected to grow at a lower rate in 2018 and 2019, supported by domestic demand but with net exports weighing down on growth. The greatest risks stem from rising protectionism and a further escalation of trade tensions and currency and stock market volatility in several emerging economies. EUROFER forecasts EU GDP growth of 2% in 2018 and of 1.8% in 2019.

Source : Strategic Research Institute
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