Nippon Steel & Sumitomo Metal Corp (NSSMC) has stopped the No.3 blast furnace at its Kimitsu works near Tokyo on March 12 as scheduled, reducing the Japanese steelmaker’s total of operative furnaces nationwide to 13 across seven works. The BF has an inner volume of 4,822 cu meters. (Source - SBB, London)
ArcelorMittal will partially cease activity at its EAF-based longs mill in Zumarraga, northern Spain, owing to exceptionally difficult market conditions. The company will initiate talks with the more than 300 workers at the plant and offer to relocate them to other mills in the country. ArcelorMittal said that the production volumes lost at Zumarraga will be transferred to other group plants. It has capacity of 750,000 Tpa of semis and 650,000 Tpa of wire rod. (Source - SBB, London)
Nucor announced its fourth plate price increase since December and would raise prices by a minimum of US$ 40/s.T., effective with all spot orders w.e.f. April 9. Other domestic plate producers are indicating they will independently follow the move this week. The previous increases have been only partially successful. Platts assessed commodity grade plate at US$ 475-490/s.T. ex-works southeastern US mill on Tuesday. (Source - SBB, London)
Brazil's largest steelmaker Gerdau has reported net loss of US$ 854 million in the fourth quarter, driven by a steep recession in its domestic market and writedowns across its businesses. The loss was mostly due to non-cash impairments totaling US$ 835 mn. taken on its north American, Brazilian and specialist steel divisions reflecting a deterioration in the steel market and the value of its assets. Before impairments, Gerdau reported an adjusted net loss of US$ 11 mn. as compared with US$ 105.8 mn. profit in the same quarter last year. (Source – Steelorbis)
The rally in the price of iron ore has fizzled out on with the Northern China benchmark import price falling by nearly 7%. The iron ore was trading at US$ 51.70 per dry metric tonne CFR Tianjin port on Monday, as compared with peak price of US$ 63.80/ dmt. The recent price spike has enabled producers to secure higher prices in the near months. (Source – Mining)
The provincial governor of Hebei province has stated that by 2020 the Government will shut down operations at 240 of the 400 steel mills that currently operate in the northern province. Hebei currently produces about a quarter of all the steel made in China. Over the next two years that transition in Hebei will cost the provincial government about US$ 27.6 billion and cost more than 1 million workers their jobs. (Source - Press Reports)
ArcelorMittal will partially cease activity at its EAF-based longs mill in Zumarraga, northern Spain, owing to exceptionally difficult market conditions. The company will initiate talks with the more than 300 workers at the plant and offer to relocate them to other mills in the country. ArcelorMittal said that the production volumes lost at Zumarraga will be transferred to other group plants. It has capacity of 750,000 Tpa of semis and 650,000 Tpa of wire rod. (Source - SBB, London)
Nucor announced its fourth plate price increase since December and would raise prices by a minimum of US$ 40/s.T., effective with all spot orders w.e.f. April 9. Other domestic plate producers are indicating they will independently follow the move this week. The previous increases have been only partially successful. Platts assessed commodity grade plate at US$ 475-490/s.T. ex-works southeastern US mill on Tuesday. (Source - SBB, London)
Brazil's largest steelmaker Gerdau has reported net loss of US$ 854 million in the fourth quarter, driven by a steep recession in its domestic market and writedowns across its businesses. The loss was mostly due to non-cash impairments totaling US$ 835 mn. taken on its north American, Brazilian and specialist steel divisions reflecting a deterioration in the steel market and the value of its assets. Before impairments, Gerdau reported an adjusted net loss of US$ 11 mn. as compared with US$ 105.8 mn. profit in the same quarter last year. (Source – Steelorbis)
The rally in the price of iron ore has fizzled out on with the Northern China benchmark import price falling by nearly 7%. The iron ore was trading at US$ 51.70 per dry metric tonne CFR Tianjin port on Monday, as compared with peak price of US$ 63.80/ dmt. The recent price spike has enabled producers to secure higher prices in the near months. (Source – Mining)
The provincial governor of Hebei province has stated that by 2020 the Government will shut down operations at 240 of the 400 steel mills that currently operate in the northern province. Hebei currently produces about a quarter of all the steel made in China. Over the next two years that transition in Hebei will cost the provincial government about US$ 27.6 billion and cost more than 1 million workers their jobs. (Source - Press Reports)
In an interview to The Financial Express, SAIL chairman Shri P K Singh said that the challenging times are mainly due to the overcapacity created by Chinese steel industry. China's own demand came down due to economic restructuring and India became a major destination for dumping of steel. However, domestic consumption showed an increase by 4.2%. Steps by the government to curtail dumping and concerted efforts to increase infrastructural spending provides some impetus to Indian Steel industry. SAIL had to suffer losses in third quarter due to 24% decline in sales realisation. SAIL is trying to reduce cost of production by ramping up production. In India, the per capita consumption of steel is just 59 kg while in China it is 500 kg. The global average is 216 kg. SAIL has invested Rs.70,000 crores in modernisation and many modernisation projects have been operated. SAIL is concentrating on the balance modernization projects and will ramp up production from 13 MT to 20 MT gradually. About the Arcelor Mittal-SAIL joint venture he said that it is moving forward in the right direction.
ReplyDeleteEssar Steel is geared up to repay loans in the backdrop of its turnaround. They have debt of Rs.39,000 crores. Banks have agreed to convert Rs.15,000 crores of loan to 5/25 scheme. And another Rs.15,000 crores will also be converted to 5/25 scheme after talks, the finance director of Essar Steel, Mahadev Iyer said.
ReplyDelete(As per 5/25 flexible structuring scheme, the lenders are allowed to fix longer amortization period of say 25 years. And periodic refinancing is done every 5 years.)
Directorate General of Safeguards (DGS) has advised for extension of safeguard duty on steel up to 31st March 2018.
ReplyDeleteEssar Steel is planning to cut costs by reducing natural gas consumption. Natural gas is used in its sponge iron plant. They are planning to increase production in their corex ( a type of blast furnace ) and blast furnace to yield more and then no additional funds will be needed for this more yield. Apart from this they are planning to sell assets.
ReplyDeleteThe Indian steel industry is in a pickle. The market is flooded with cheap imports arriving from China, Japan and Korea. The government has taken steps to give temporary reprieve by issuing safeguard duty, minimum import price on steel arriving into the country. India is now the third largest steel making country but its products are not globally competitive. A ton of reinforcement steel produced in India is Rs.15,000 more than Chinese steel. Indian consumers cannot be blamed if they opt for Chinese steel. Also, modernization of steel plants has made steel industries deep in debts. In fact, many steel men are asking for a financial package from the government to get out of financial crisis.
ReplyDeleteIn the wake of Vijay Mallya's case of default, SBI, a leading lender has called Jindal Steel and Power Limited (JSPL), Bhushan Steel, Essar Steel and Visa Steel to discuss loan repayments and explore options of bringing in strategic investors.
ReplyDeleteArcelor Mittal South Africa is to increase its steel prices amid rising input costs and heavy competition from cheap imports.
ReplyDeleteRINL CMD Madhusudan feels that imposition of MIP will improve steel sector. RINL is confident of good business in view of a new capital in Amravati coming up.
ReplyDeleteEU to accelerate decision making with respect to steel dumped in Europe from China.
ReplyDeleteSteel minister Narendra Singh Tomar introduces bill to amend Mines and Mineral Act and will include provision to allow transfer of captive mines through procedures other than auctions.
ReplyDelete