Steel Prices Could Surge in 2017 as China Tackles Pollution We’ll remember 2016 as the year in which steel prices bottomed out thanks to higher-than-expected demand in China. China, once again, increased infrastructure and property construction spending. As a result, steel prices rose. China’s primary growth engine — and, therefore, that of industrial metals demand — was fired up one more time. Some people might think that what drove steel prices this year was the imposition of higher trade barriers. While that did help prices, the real driver sustaining the rising trend in steel prices was the aforementioned higher-than-expected demand in China. Many analysts expect the country’s demand growth rates to slow down this year. Some Chinese cities have tightened their home purchasing rules to prevent their property markets from overheating. Also, China’s car sales could lose momentum if China doesn’t extend the tax break for small cars in 2017. However, this year, the key driver won’t be demand as much as supply. China’s pollution problems could very well disrupt the supply of the world’s largest steel producer. Cities in China have for years been choking on the smog spewing from China’s industrial production sector but things are recently getting much worse. Two weeks ago, authorities asked 23 cities in northern China to issue red alerts as inspection teams scoured the country. The scale of the red alert measures show that the Chinese government is taking air pollution seriously. China has previously applied stricter anti-pollution rules and supply-side reforms designed to cut capacity in the coal and steel sectors, which helped push prices up. Now that the situation is getting unbearable for citizens, China has no choice but to get tough in its self-declared “war on pollution.” (MetalMiner , 3 Jan, 2017)
Source: Other (03.01.2017)

To treble capacity to 300 mn tonnes, provide global heft, Steel Ministry to hire expert Keen on making domestic steel industry globally more competitive and actualising the ambitious target of nearly trebling capacity to 300 million tonne, steel minister Birender Singh will appoint an expert with the mandate to lay the road map for the sector’s development. The expert will possess exceptional domain knowledge and would advise the ministry on how to improve efficiency of the sector to bring it at par with the global leaders. The minister said that he still has a list of half a dozen names to consider and choose one from them. Other industry officials said the minister might face such “hurdles” to get a suitable candidate in the coming days also as none would like to take on the bureaucracy, who decide on the policy matter and “virtually” run the state-run firms even as they don’t have sufficient domain knowledge. However, they added if one is eventually appointed, he/she must have experience in working in Indian environment and be given free-hand to frame policies that are conducive to the industry. “We need policies that will facilitate us to grow further and will be helpful for us,” an industry official said. The financial express
Source: Other (03.01.2017)

US steel industry output to see marginal growth in 2017 According to survey conducted among top analysts, the US steel industry is most likely to return to growth in 2017. The projected growth is mainly on account of lower imports and rising domestic demand. Introduction of various trade protectionist measures will help to curb the rising cheap imports from other countries. The increased demand from housing and construction markets will result in increased steel production, the analysts observed. The US steel makers have witnessed a tough year in 2016. Sharp drop in raw material prices, global oversupply and dumping of steel products from countries such as China have impacted the domestic steel sector in the country. As a result of this slowdown, American steel making majors including Nucor, AK Steel and US Steel reported weakness in earnings. However, analysts expect recovery in US steel demand, mainly on account of rising demand from construction, oil and gas sectors. Meantime, demand from automotive sector is expected to remain weak. The crude steel output by the US is expected to increase by 4.4% in 2017, after two consecutive years of contraction. Incidentally, the US crude steel output during the initial eleven months of 2016 has totaled 72.041 Million tons, marginally down by 1.2% when compared with the corresponding period last year. (Scrap Monster, 30 Dec, 2016)
Source: Other (03.01.2017)

Former "Dundee" director for Bulgaria has temporarily been appointed as AmCham’s CEO Alex Nestor, who was CEO of the Canadian Dundee Precious Metals in Bulgaria for many years, has been chosen to be a temporary CEO of the US Chamber of Commerce, announced the AmCham on Tuesday. Nestor, who is a board member and vice president of the Chamber since 2009, is taking the place of Valentin Georgiev, who was executive director of the Chamber for 14 years. Georgiev withdrew his title at the annual general meeting of the organization in December 2016. During his 30 years of international professional experience Alex Nestor has held senior positions in corporate PR, project management, engineering, construction, production and sales in mining, metallurgical, petrochemical and nuclear industries. His rich experience and skills to handle multiple languages contributed significantly to his professional success in the USA, Canada, Russia, Kazakhstan and Bulgaria. Alex Nestor worked actively with five successive governments in Bulgaria, in business, political and media circles in the country. In Bulgaria he was director of corporate and external relations and executive director of the Canadian company Dundee Precious Metals, Deputy Chairman of the Bulgarian Mining Chamber and Chairman of the Srednogorie Med industrial cluster, member of the supervisory boards of Mining and Geology University and the Federation of scientific and technical unions in Bulgaria. ‘In 2017 the American Chamber will continue to work actively with the institutions and will develop policies for a better business environment. A White Book is going to be presented with recommendations from the business to the future government, with priority areas education, human resources, sustainable business environment and the rule of law, "said Alex Nestor.
Source: mediapool.bg (04.01.2017)

Strategic iron ore delivery agreement signed by MMK and ERG Russian steelmaker OJSC Magnitogorsk Iron and Steel Works and Eurasian Resources Group, a natural resources producer, have signed a strategic agreement for the supply of iron ore. The agreement provides for the supply of more than 30Mt million tonnes of iron ore, including pellets and concentrate, through to 2020 and represents the largest agreement of its kind in recent years. According to MMK, the new contract provides the steelmaker with all the iron ore it will need over the next four years. MMK continues to develop its partnership with ERG, one of the biggest suppliers of high quality iron ore. “Our relationship is based on long-term and mutually beneficial co-operation,” said MMK’s chairman Viktor Rashnikov, adding that this long-term agreement is at core of the steelmaker’s corporate development programme and aims to secure the company’s supply of raw materials.” Steel Times International, 04 Jan
Source: Other (04.01.2017)

Hebei to cut 31.86 mln tonnes of steel and iron capacity in 2017 China's biggest steelmaking province Hebei plans to slash 31.86 million tonnes of steel and ironmaking capacity for this year, the official Xinhua news agency quoted a provincial official. Hebei accounts for nearly a quarter of China's total steel output and has pledged to cut steel capacity by 31.17 million tonnes by 2017 and by 49.13 million tonnes by 2020. Hebei provincial governor Zhang Qingwei stated in a government work paper that Hebei is aiming to eliminate 15.62 million tonnes of steel capacity, 16.24 million tonnes of ironmaking capacity by the end of this year. Hebei had cut 14.62 million tonnes of steel capacity by the end of October, achieving 2016's target of 14.22 million tonnes ahead of schedule. In addition, there are plans to cut 7.42 million tonnes of coal capacity, 1.1 million tonnes of cement capacity and an additional 5 million weight cases of flat glass in 2017. Xinhua, 08 jan
Source: Other (06.01.2017)

Industry in Bulgaria is yet to develop Anton Petrov, regional manager of Viohalko for Bulgaria - Mr. Petrov, how did Viohalko manage to permanently establish in Bulgaria? - A string of factors, perhaps circumstances as well. When we wanted to enter Bulgaria as manufacturers, there were plants for sale. In 2000 Pernik-based plant Stomana was put for sale, as well as the smelter for processing of non-ferrous metals. And through the first greenfield investment in the plant for aluminum profiles Etem, launched in 1997, we had raised confidence that this can work. The Bulgarian team also gave confidence that things can go well. And gradually we came to these large investments. - What business do you manage? - The business of Viohalko in Bulgaria is significant, not only in terms of the scale of the investment or the EUR 1 billion, which the group makes. It is also a good example. When a famous European or global company comes to Bulgaria and makes massive investment, it shows that it has considered the possibilities of the country. Be assured that for many Greek companies, the fact that Viohalko is here, is enough to follow suit. Thus, the indirect effect is much larger than foreign direct investment and the results of our group. - Were the initial expectations for good business development in Bulgaria met? - Viohalko came to Bulgaria back in 1991 with its commercial structure and this has contributed to build confidence. We went through difficult years, in 1995-1996 we went through hyperinflation. Apparently, we were bolder than the situation offered. But the decisions were correct, as all our endeavors were realized. - What would you say to potential investors - is it worth to make such long-term investments in Bulgaria? - Absolutely yes. Things have changed a lot and have nothing to do with the 1994-1996 period, Bulgaria is an European country with great prospects, with knowledgeable and capable people. Saturation with industrial enterprises is very low. The industry is yet to develop. The trend is only up. Many quicksand and risks no longer exist. - But how to solve the shortage of skilled workers issue? - This problem has been around awhile. It is becoming more pronounced, but is solvable. Bulgaria is an open country and whether Bulgarians will begin returning from abroad, whether people from neighboring countries where unemployment is huge, or Bulgarian minorities in Moldova, Ukraine and Russia will come, but sooner or later we will find a solution. Germany has had similar difficulties with shortages. Let's hope that the problem will be how to find new people to work in new businesses and companies created in Bulgaria. - Do you believe, that after living through another political crisis, it is possible for the Bulgarian economy to experience a kind of renaissance? - Renaissance in the Bulgarian economy is visible and tangible, but unluckily, just when the growth rate began to increase and we saw prospects, this political crisis immerged. We hope it will soon be solved. We rely on the foresight of the politicians, otherwise growth is slowing down and the country needs it. (Economic.bg)
Source: Other (09.01.2017)

Hoa Phat Steel raises productivity Vietnamese Hoa Phat Steel operates four Danieli mills at Hai Duong and recently upgraded its number four mill, adding an EWR/K-Welding unitmill. Nr. 4 has been upgraded with an EWR/K-Welding unit, in order to perform endless rolling. The Hai Duong mill was originally designed to produce 600kt/yr of rebar products and is fed 12-metre long billets through a 115 tonnes/hr pusher-type reheating furnace. Once installed, the EWR/K-Welding unit increased mill productivity by approximately 8%, with over 1% improvement of yield. The machine welds 150-mm and 165-mm square billets to produce rebar from 10mm to 32 mm, while the mill finishes bars up to 16 mm using two-strand slitting technology. The final acceptance for the billet welder has been released and the expected payback time is less than 18 months. Hoa Phat is one of the three largest steel producers in Vietnam and the new EWR/K-Welding unit is the second installed in the country. Steel Times International
Source: Other (09.01.2017)

Budget 2017: Steel Min seeks import duty reduction on coking coal, nickel Ahead of the Union Budget 2017-18, the Steel Ministry has sought reduction in import duty on both coking coal and nickel, a move that may revive the sector, a top official said. While the import duty on nickel is 5 %, in the case of coking coal, it is 2.5 % now. India has to heavily depend on import of coking coal, as the domestic quality has higher ash content which is unsuitable for the steel industry with present technology. Indian Steel Association, the industry body representing primary steel producers, has also urged the government to reduce import duty to zero on all the raw materials used for steel making. Sanak Mishra, Secretary General of ISA said, they have also requested the government to reduce railway freight for the steel industry. Sail, India's largest steel maker, had recently said there is a need to develop indigenous sources of coking coal to meet requirements as the recent rise in the price of metallurgical coal was putting pressure on its operations. Firstpost.com
Source: Other (09.01.2017)

For the first time in 8 years the steel production in Bulgaria will record a slight rise in 2016. The good news is that this trend is expected to be maintained in the next year. In addition to the non-ferrous metals’ success to evade the crisis slump, the metallurgy business shows perspective signs for development. The extractive industry, on the other hand, the mining sector in particular - despite the expansion in production for the first nine months of 2016, is showing a decrease in turnover. The results for 2015 showed to be similar and mining companies attempted to deal with low prices through higher output. And even though the prices of metals have gone up, the unpredictable geopolitical situation along with its effect on the general economic conditions have made it impossible for the sector to make any forecast. A good direction Overall, 2017 is expected to be a good year for the steel business in Europe. A reason for this are the restricting measures the European Commission enforced on Chinese import for certain products in the form of additional duty and the approach is already showing results. ‘This will definitely give European producers a better start, protecting them from unfair competition on dumping prices. And the steel sector, which practically is ‘Stomana Industry’, is anticipating 2017 to be much better from the previous crisis years’, stated Anton Petrov, representative of the Greek-owned Viohalco, owner of Stomana Industry and chairman of the Bulgarian Association of the Metallurgical Industry (BAMI). He added that the rise is beginning to be perceivable. ‘This trend became visible in 2016, especially in the second half of the year. Of course, it might be a modest, but it is a good direction’, said Petrov. According to BAMI’s Executive director Politimi Paunova, the lack of a significant rise in European consumption for steel products is restraining the further development of the steel sector. In her words, Eurofer’s expectations for this year calculate the increase in demand to be around 1-1.5%, although such a number is close to the statistical error. ‘It cannot be stated that the European industry has exited the zero level, which was reached during the crisis, and this directly affects steel consumption’, added Paunova. The ferrous metallurgy in Bulgaria is still not operating at full capacity. The capacity of Stomana Industry and Promet Steel, which uses billets, reaches a total of 1.8 million tonnes. At the same time production cannot exceed 600-700 thousand tonnes, said Paunova. According to her, the country’s conditions will also be a factor whether the slight increase in ferrous metals will be maintained in 2017. ‘This means no reforms in tax laws and regulations, which concern our sector, including the energy resources’, she added. Stable market positions The non-ferrous metallurgy, where production has practically reached full capacity, shows a more assuring situation. ‘The higher prices of these metals enhance their trade not only in Europe, but on a global scale. The companies have stable markets and will continue to maintain the good levels’, stated Paunova. Äîñòà ïî-ñèãóðíà å ñèòóàöèÿòà ïðè öâåòíàòà ìåòàëóðãèÿ, êúäåòî ìîùíîñòèòå íà ïðàêòèêà ñà äîñòèãíàëè êàïàöèòåòà ñè. "Ïî-âèñîêèòå öåíè ïîçâîëÿâàò òåçè ìåòàëè äà ñå òúðãóâàò íå ñàìî â Åâðîïà, íî è ïî öåëèÿ ñâÿò. Êîìïàíèèòå èìàò ñòàáèëíè ïàçàðè è ùå ïðîäúëæàò äà ïîääúðæàò äîáðèòå íèâà", êàçà Ïàóíîâà. The Plovdiv-based lead and zinc producer KCM are expecting a normal year – fairly high prices of metals, but a low rise in consumption. ‘We will maintain the production levels from 2016, i.e. around 70 thousand t. lead and 74 thousand t. zinc’, said Rumen Tsonev, General Executive director of the group KCM 2000. In the last month the zinc’s price reached USD 2700 per tonne, and the lead’s price – USD 2100- USD 2300 per t. ‘The higher price in general suggests a better year, but not as much, since the world consumption is not expected to record a big increase’, he explained. After completing the large-scale renovation of its mill, the company has improved its production and energy efficiency and according to Tsonev, this has ensured the company stable market positions. ‘It is a trait of ours to reinvest in the company’s activity what we have achieved as a financial result. The investment is estimated around BGN 15-20 million, which is equal to the expected profit’, he added. At full capacity After a decline in production levels due to a 2-month capital repair, the copper producer Aurubis Bulgaria is expected to restore its levels to full capacity in 2017. For the period 2015-2016, the mill in Pirdop has processed 200 thousand less concentrate (a total of 1 million t.) and the produced cathodes have decreased to 214 thousand t. from 232 thousand t. a year earlier. This has shrunk the profit to nearly one third, to EUR 61.2 million. The group’s 2016-2017 forecasts is for a significantly higher operational profit, before taxes and a slightly higher return on capital. However, the uncertainty of the general economic development and the markets will continue to influence on the company’s results, said Aurubis. Investments The manufacturer of aluminum products Alcomet may expect a change in volume next year when the two-year investment program of the company is completed. In 2016, the company launched a project worth EUR 36 million, which will increase its capacity by 35% to 100 thousand t. per year. Investments will be made in three workshops of the Shumen plant (extrusion, rolling and foundry), the goal is to introduce the production of special products with higher added value. This will raise the company's turnover by 50% to BGN 500 million after completing the program. For the nine months to the end of October Alcomet reports a 6% drop in net sales due to lower aluminum prices. Profit, however, increased more than four-fold to BGN 21.3 million. In general forecasts for the companies that manufacture metal products are positive. ‘Enterprises like Alcomet, Etem and Sofia Med are expected to have better results in 2017," said Petrov. In his words, even without a specific project all metallurgical enterprises continuously invest in new machinery and equipment. ‘Investments in the sector in the range of BGN 100-150 million annually are quite normal," he added. Uncertain environment for the extracting industry Regardless of the higher metal prices in the last few months, the extracting industry remains cautious in their expectations for 2017 due to the common unstable situation. ‘The forthcoming, but yet unpredictable for the moment geopolitical changes along with the development of a number of regional and military crises have a primary impact on the stock, financial, trade and other general economic conditions. Adding unstable arrangements between world oil producers and anticipated but unknown changes in interest rate and monetary policies of the US Federal Reserve, forecasting prices on raw materials next year would be more than likely inaccurate’, said the Bulgarian Chamber of Mining and Geology (BMGK). As an example they refer to the copper price, which varies from USD 2750 to over USD 7000 per t. The NSI data for the first ten months of 2016 has affirmed the tendency, which had formed the previous year. In 2015 the output for the country grew with 10% in natural indicators, reaching the record-high 113 million t. raw materials. Revenue, however, decreased by 1% to BGN 2.4 billion due to a decrease in metal prices. Two thirds of the sector production is formed by ores and coals. Amid the general uncertainty and despite the positive signals from metal prices in October and November 2016, the Chamber did not commit to specific forecasts for production and revenues in the new year. Projects
Source: Capital (10.01.2017)

ITC makes affirmative injury determinations in anti-dumping investigations on CTL plate The US International Trade Commission (ITC) has made affirmative final determinations in the anti-dumping (AD) investigations on carbon and alloy steel cut-to-length (CTL) plate from Brazil, South Africa, and Turkey. The ITC found that US steel producers have been materially injured by dumped imports of CTL plate from these countries, paving the way for the imposition of AD orders. All six Commissioners voted in the affirmative. The ITC will be voting on the remaining nine countries (Austria, Belgium, China, France, Germany, Italy, Japan, Korea, and Taiwan) subject to these AD and countervailing duty (CVD) investigations in the next several months. The ITC determination is in response to an April 2016 petition filed by Nucor Corporation, ArcelorMittal USA, and SSAB Enterprises, alleging that unfairly dumped and subsidised CTL plate from 12 countries is injuring the US industry and threatening the industry with additional injury. Alan Price, partner and chair of Wiley Rein's International Trade Practice, and counsel to Nucor Corporation, said that these final determinations were a critical step in returning fair trade to the US flat-rolled steel market. (Steel Times International, Jan 09, 2017)
Source: Other (11.01.2017)

Region exports steel to neighbor nations When it comes to the U.S. steel industry and international trade, the talk is usually about imports. The focus is on which countries are shipping steel to the United States, at what price, if they've gotten subsidies, are dumping it below price, and whether the U.S. government will impose tariffs meant to deter dumping. Domestic steelmakers like U.S. Steel, Chicago-based ArcelorMittal USA and Fort Wayne's Steel Dynamics have pursued a number of trade cases against foreign steelmakers as steel layoffs have mounted and mills have been idled. But U.S. steel mills also export metal to foreign countries. For instance, in 2011 ArcelorMittal's Burns Harbor steel mill sent 18,000 metric tons of Northwest Indiana-made steel through the Port of Indiana-Burns Harbor to Macedonia in southeastern Europe. Most of the exports, however, go to North America neighbors in Canada and Mexico. "While the majority of our domestic steel production stays in the United States, ArcelorMittal does ship to locations throughout North America from our U.S. facilities," ArcelorMittal USA spokeswoman Mary Beth Holdford said. (NWI Times, Jan 13, 2017)
Source: Other (13.01.2017)

Iran to impose new duty on steel imports from September The Iranian parliament has imposed a new duty on steel imports, likely to be effective from September this year, according to the ICANA news agency, which is affiliated to the parliament. The duty is Iranian Rial 100,000/mt (about $25/mt) of imported material and will be imposed on all steel products during Iran’s sixth development plan, running from 2017 to 2023. The duty will cover billet, beam, different strips, tubes, pipes, stainless steel and scrap. The duty will be imposed in addition to all import taxes already in place and the funds raised from it will be used for the development of the country’s national railway system. The new duty will almost certainly cause an increase in production costs for downstream industries, said Amirhosein Kaveh, secretary of the Iranian Syndicate of Steel Pipe and Profile Manufacturers. There is already considerable pressure on the Iranian pipe industry at the moment and a part of capacity is idle as a result of a slump in demand and production costs. The Iranian government is following a highly protective policy for the upstream steel industry and this has increased production costs for downstream users, Kaveh said. The new duty would mark the third increase in import costs since January 2016. He also said that the syndicate has asked the government to cancel this new duty. (Platts, Jan 16, 2017)
Source: Other (16.01.2017)

Ministers REFUSE to guarantee British steel will be used to build ?55.7billion HS2 railway Ministers are refusing to guarantee British steel will be used for the ?55.7billion HS2 railway. The Department for Transport will not promise to buy the two million tonnes of steel needed for the vast project from UK suppliers. While most of the metal is expected to come from British firms, the Government’s failure to commit triggered fears ministers could buy cheaper products from abroad. Lib Dem transport spokeswoman Baroness Jenny Randerson warned: “The Government should be doing their upmost to ensure that HS2 are using British steel on the project. “We have a strong tradition of manufacturing in this country and as a flagship project we should be provided with a guarantee that the construction will benefit not just passengers but industries such as steel too.” MPs were told in November that currently, “95% of steel in rail is UK steel”. Transport Secretary Chris Grayling was asked if he believed “that record will be matched by the steel used for HS2”. (Mirror, Jan 17, 2017)
Source: Other (16.01.2017)

New blast furnace for EVRAZ NTMK Russian steelmaker EVRAZ has awarded Primetals Technologies a multi-million Euro order to supply the automation, electrical equipment and instrumentation for the new blast furnace number 7 at the company’s Nizhniy Tagil Metallurgical Plant (EVRAZ NTMK). To reduce service costs, especially where future upgrades are concerned, the basic automation (level 1) and process optimisation (level 2) will be installed as a virtualised automation system on central, redundant servers. The new process automation will also optimise coke consumption and is scheduled to be commissioned at the end of the year. The contract includes the supply of automation, electrical equipment and instrumentation, says Primetals. Blast furnace number 7 has a production capacity of 2.5Mt/yr of pig iron per and is intended to replace blast furnace number 6, which is scheduled for an overhaul. With an annual production of 4.9Mt of crude iron and 4.2Mt of steel, EVRAZ NTMK is one of the largest steel works in Russia. (Steel Times International)
Source: Other (23.01.2017)

India to double steel production by 2030 India is planning major expansion of its steel production capacity. Minister of Steel Chaudary Birender Singh claims that a national steel policy has been drafted and that the plan is to produce 300Mt/yr by 2030-31, which means increasing per capita steel consumption in India to 160kg from its present 61kg. According to an online report from governancenow.com, India’s Ministry of Steel has developed four committees with the sole purpose of formulating codes and standards, life cycle cost analysis and sustainability, ‘development of designs of various utility structures’ and skill development within the steel sector. Four task forces have been established in collaboration with the Institute for Steel Development & Growth (INSDAG) to increase steel usage in railways, urban development, road transport and highways and shipbuilding, and big Indian steelmakers, like SAIL and Vizag Steel, have initiated promotional campaigns. (Steel Times International)
Source: Other (23.01.2017)

Steel industry 'could thrive' if ministers follow MPs' 'masterplan' to save 40,000 jobs Britain's beleaguered steel industry can “thrive nationally and globally” if ministers follow a detailed blueprint to save the sector, MPs say. The Steel 2020 masterplan paints a potentially upbeat future for the industry at the heart of a UK manufacturing revival. But it offers a bleak assessment of the coming decade unless ministers take action to support the sector. Today's blueprint for saving the embattled industry and protecting 40,000 jobs is formally launched by Westminster’s cross-party task force at lunchtime. It has 43 recommendations and identifies seven key areas, including slashing energy prices for manufacturers, imposing tough “defence” measures to tackle Chinese dumping, and striking a “strong trade deal” with the EU after Brexit . Theresa May will promise that ministers will “step up” and take an active role in backing business, as she unveils the Government’s industrial strategy. (Mirror)
Source: Other (23.01.2017)

Japan threatens India with WTO on steel as Trump era heralds rising trade tensions Japan is threatening to take India to the WTO over restrictions that nearly halved its steel exports to the South Asian nation over the past year, a step that could trigger more trade spats as global tensions over steel and other commodities run high. Such action is rare for Japan. The world's second-biggest steel producer typically tries to smooth disputes quietly through bilateral talks, but with global trade friction increasing, Japan's defence of an industry that sells nearly half of its products overseas is getting more vigorous. Besides concern over India's protection of its domestic steel industry, Japan is also worried about the more rough and tumble climate for global trade being engendered by incoming U.S. President Donald Trump, and feels it must make a strong stand for open and fair international markets. India imposed duties of up to 20 percent on some hot-rolled flat steel products in September 2015, and set a floor price in February 2016 for steel product imports to deter countries such as China, Japan and South Korea from undercutting local mills. (New Indian Express)
Source: Other (23.01.2017)

World crude steel output increases by 0.8% in 2016 World crude steel production reached 1.62Mt for the year 2016, up 0.8% compared to 2015. Crude steel production decreased in Europe, the Americas and Africa and increased in the CIS, the Middle East, Asia and Oceania, according to figures released by the World Steel Association (worldsteel). In December 2016, world crude steel production for the 66 countries reporting to the World Steel Association (worldsteel) was 134 Mt, an increase of 5.5% compared to December 2015. The crude steel capacity utilisation ratio of the 66 countries over the same period was 68.1%. This is 2.8 percentage points higher than December 2015. The average capacity utilisation in 2016 was 69.3% compared to 69.7% in 2015. Annual production for Asia was 1.12Mt in 2016, an increase of 1.6% compared to 2015. China's 2016 production reached 808.4Mt, up by 1.2% on the previous year, and its share of world crude steel production increased from 49.4% in 2015 to 49.6% in 2016. (Steel Times International)
Source: Other (30.01.2017)

Pulling out of the TPP “not an entirely positive outcome” for US steel: Wood Mackenzie Higher steel costs for U.S. manufacturers and a drop in high-value exports are a potential outcome of an executive order by President Donald Trump to abandon the Trans-Pacific Partnership (TPP) trade pact, said consultancy Wood Mackenzie. "Surprisingly despite the headlines, the reversal of this policy is not an entirely positive outcome for the U.S. steel industry," analysts wrote in a note released on Jan. 26. Trump said the decision was aimed at keeping jobs in the U.S., but Wood Mackenzie noted the country has gained more from its steel exports than what it spent on imports. In 2015, around 30 percent, or 11 million tonnes, of all steel imported into the U.S. came from the countries in the TPP at a value of approximately $11 billion. At the same time, 89 percent or around 9 million tonnes of all steel exported from the US was destined to these countries– at a value of approximately $12 billion. The value of the exported material was also over 40 percent higher than what was imported with the shipped material averaging $1,400 a metric ton while what was imported cost $972 a ton. (CNBC)
Source: Other (30.01.2017)

Tata lost interest in UK steel, says new boss Scunthorpe steelworks plunged deep into the red and was forced to axe hundreds of jobs after Tata Steel “lost interest” in it, it has been claimed. In a stark assessment of the failings of the site’s former owners, new boss Roland Junck claims it “got lost” inside Tata’s sprawling empire. “Scunthorpe was not a business, it was an inward-looking production hub embedded in a large business,” said Mr Junck, a steel industry veteran. “When we looked at it, it had no strategy, no balance sheet. It was surviving almost day to day.” Renamed by new owners Greybull, British Steel is on course for a ?120m profit. It is also re-employing some of the 1,200 staff axed in the run-up to its sale. Mr Junck added there had been 3,400 applications for 31 graduate positions. “This shows people there is a strong future” he said. His claims are controversial – sources close to Tata insist its tough choices, such as freeing it of its pension burden, ending its involvement in plate steel and cutting staff, allowed the new firm to flourish. A spokesman for Tata said the company wished the new owners well but declined to comment further. (The Telegraph)
Source: Other (30.01.2017)

China accuses EU of protectionism over steel taxes Beijing has accused the EU of protectionist behavior after Brussels imposed anti-dumping duties on Chinese steel products, as it seeks to protect struggling steel makers in Europe. The EU Commission said on Friday it would impose taxes of between 30.7 percent and 64.9 percent on certain Chinese steel products which it says are being sold at a loss in Europe. The measure, which also applies to Taiwan, is part of an EU push against China — which makes more than half the world’s steel — for allegedly flooding global markets in violation of international trade agreements. It comes as protectionist US President Donald Trump promises to crack down on China’s dominance of world trade, prompting a vigorous defense of globalization by Chinese President Xi Jinping at the World Economic Forum in Davos last week. However, China’s commerce ministry said the EU move was in breach of WTO rules and vowed to “take necessary measures to defend the fair rights” of Chinese companies. Imprudently taking protectionist measures is just another attack on international trade,” a ministry official said on Friday in a statement. (Taipei Times)
Source: Other (30.01.2017)

Prospects looking good for steel in 2017, says CJM Asset Management Are the prospects for steel producers looking bright in 2017? Yes they are if enquiries for used steel processing equipment are a fair barometer. CJM Asset Management, a firm of chartered surveyors specialising in the valuation and sale of used steel and aluminium plant report a significant upturn in enquiries over recent months. CJM managing director Charles Moses commented “After two or three years with interest in used mills and processing equipment almost non-existent, enquiries have increased significantly since the middle of last year with over 40 enquiries for the Voestalpine Wire Rod Mill in Austria and a successful sale of almost all the stainless processing plant from Outokumpu’s precision strip plant at Kloster. In addition we have concluded sales of two welded tube mills for SSAB in Sweden and also finalised the sale of an SMS 18-stand stretch reducing mill at Virsbo for Ruukki. (Steel Times International)
Source: Other (01.02.2017)

Alcomet tripled its profit in 2016 The manufacturer of aluminum products increased sales of special products at the expense of standard The profit of aluminum producer Alcomet nearly three times increased last year. Despite the slight decrease in sales, shrinking costs were significantly higher, which is the reason for the improved result. This is clear from the report of the public company. In 2016, the company continued its reorientation to prioritize the production of products with higher added value, and its share on the market of household foil in Europe reached a quarter. In next years sales are expected to continue to grow, after the company launched a new investment to increase capacity in Shumen last year. The project should be completed in 2018. Results Net sales of the company decreased by 4.2%, but operating costs dropped by 10.3%, the decline is mainly in the cost of materials. The main reason for this is the lower aluminum prices during the first three quarters and increased production efficiency. The company benefits from an allowance for processing, so that price changes on the London Metal Exchange have minimal effect on its results. Therefore, profit increased significantly. Production at the plant, which has a rolling and extrusion workshop and foundry, as a whole remained stable and capacity was fully loaded. The slight decline in press products (4%) offset the same increase in rolling products as sold production was total 65.5 thousand tons. Restructuring Last year, the company continued to pursue its strategy of restructuring of the product mix towards products with higher added value. As a result, there is significant growth in sales of special painted and anodized profiles, while the standard products reported a decrease of 9%. Rolling products also increased in sales of coated and household foil and reduction occurred in sheets and strips. In the past year, striving to establish itself as a major supplier of coated film and finstock, led to positive results visible both from the sales growth of these products and the expansion of the market presence. The decline in sales of sheet and strip is targeted and regulated and is within the limit of free-rolling capacity. Alcomet is a key producer of household foil in Europe last year, its share reached 25%. For comparison, in 2015, the company held 20% of the market. Nearly a quarter of Alcomet’s products are exported to Germany. Other major markets also include Poland, Italy, Bulgaria, France, Spain, Denmark, Austria, the Netherlands and Hungary. The improved profitability of the company has led to a reduction in short-term loans by about 25%. This factor combined with reduced bank interest rates and historically low levels on EURIBOR are causing interest expenses to decline by 46% yoy (to BGN 1.8 million). Plans for new growth Last year the company launched a two-year investment program of EUR 36 million, which is expected to increase the capacity of the plant by 35% to 100 thousand tons per year. The company will expand its portfolio of products again with a focus on more specific products, as a result of which turnover is planned to grow by nearly 50% to BGN 500 million. The number of workers will also be increased by about 100 people to 1000. The investment is financed with own funds and a bank loan and is expected to be repaid over five years. Shumen-based plant was privatized 17 years ago by the Turkish FAF Metal. Since then the enterprise invested EUR 80 million, while capacity has increased 15 times. Following the publication of the report, the company's shares rose more than 5%, and the company's capitalization is BGN 327 million, up 143% in 12 months.
Source: Capital (02.02.2017)

Leading electricity company to curb thermal power investment China Guodian Corp. (CGC), a leading electricity company, will cut its investment in thermal power projects to slash overcapacity and shift toward clean energy. To this end, the corporation plans to spend at most 44.8 billion yuan (around 6.53 billion U.S. dollars) this year, a remarkable fall from 58.2 billion yuan in 2016, said CGC chairman Qiao Baoping. As the country's electricity sector is plagued by overcapacity, the corporation canceled six thermal power projects and suspended a few last year. The proportion of electricity generated by clean and renewable energy rose to 30.3 percent of the corporation's total output in 2016. Qiao said the corporation will continue to increase investment in clean energy while curbing the growth of thermal power. CGC plans to produce 507 billion kilowatt hours of electricity and 57.4 million tonnes of coal this year. At the end of 2016, the corporation's total assets stood at 804.3 billion yuan. Revenue reached 183.6 billion yuan. Its electricity output was 505.2 billion kilowatt hours in 2016, up 4.4 percent year on year. (China.org.cn)
Source: Other (02.02.2017)

Steel Price Recovery Made Chinese Steel Companies Profitable in 2016: NDRC According to the National Development and Reform Commission (NDRC), Chinese steel producers were able to post profits last year after the country’s capacity reductions boosted steel prices. The profits of 373 steel companies are expected to reach 35 billion yuan ($5.1 billion) in 2016, even as the prices for some inputs soared. In 2015, these steel companies lost 84.7 billion yuan. China moved in 2016 to cut steel capacity, and as of October 2016 had achieved its goal of reducing capacity by 45 million tons. From 2016 to 2020, steel capacity will be cut by 100 to 150 million tons. At the same time that China cracked down on steel production, it also pushed coal miners to reduce output and soaring metallurgical coal prices impacted steel companies’ margins. There was the sentiment that China would reduce regulations as the rise in metallurgical coal prices were protested by domestic steel companies. However; the fact that these steel companies were profitable gives the government support to push forward with more cuts. (Economic Calendar)
Source: Other (03.02.2017)

ArcelorMittal introduces first ever Jet Vapor Deposition line in Belgium A EUR 63 million Jet Vapor Deposition line has been opened today at ArcelorMittal's Kessales plant in Belgium. According to the world's largest steelmaker, the plant is the result of years of 'scientific investigation' by the company's research and development teams, in collaboration with the Metallurgical Research Centre, to create a new breakthrough technology for the metallic coating of steel. The new line is a part of a EUR138 million investment programme and falls within the scope of the 2014 Industrial Plan (an agreement between ArcelorMittal, the Walloon Government, Sogepa – Societe de Gestion et de Participations – and social partners). Finance for the project came from Sogepa, through ARCEO, a joint venture between Sogepa and ArcelorMittal. What exactly is JVD technology? According to ArcelorMittal, it enables moving strips of steel to be coated in a vacuum chamber by vapourising zinc onto steel at high speed. (Steel Times International)
Source: Other (06.02.2017)

Thyssenkrupp invests further in automotive components business in Hungary A EUR35 million production facility for springs and stabilisers is to be built in Debrecen, Hungary, following an announcement by Hungary's Foreign Minister, Peter Szijarto and Matthais Koll, CEO of German steelmaker ThyssenKrupp's springs and stabilisers business unit. Construction will start on the 20,000 square metre site in the spring and it is estimated that the plant, when up and running in 2018, will produce over six million coil springs and stabilisers per year in addition to creating around 250 jobs on-site by 2020. Early last year thyssenkrupp began building a new facility for engine and chassis components near Budapest. Production of electric power-assisted steering systems and cylinder head covers with integrated camshafts is planned to commence in 2018. The company is investing around 100 million euros in this new facility. Thyssenkrupp also opened a front and rear axle assembly plant for Audi in Gyor in 2013. (Steel Times International)
Source: Other (08.02.2017)

Welsh steel industry gets investment boost The Welsh government is to plow ?2.8 million into the country’s steel industry to help secure more than 550 jobs, it has been announced. Welsh economy secretary, Ken Skates confirmed on Wednesday that 90 extra steel jobs will be created and a further 477 safeguarded following the investment into Code Serve in Brynmawr, Dyfed Steels in Llanelli, Express Reinforcements in Neath and Celsa Steel in Cardiff. A total of ?750,000 has been handed to Dyfed Steels, which is investing more than ?4 million in to a new manufacturing facility. It will create 30 additional jobs, safeguard more than 170 jobs, and help the company cope with more business. Code Serve has also been handed cash because it has outgrown its current facility and is relocating. It will make a ?1 million investment that includes the purchase of new equipment and is backed by ?400,000 from the Welsh government. Meanwhile Express Reinforcements, which specialises in the manufacturing and supply of steel reinforcement products, are investing ?150,000 into bespoke machinery and IT hardware and software to increase capacity. (worksmanagement.co.uk)
Source: Other (09.02.2017)

U.S. Steel Leads Sector Advance As Trump Vows 'Phenomenal' Tax News U.S. Steel rebounded powerfully from a key support level Thursday, leading a broad advance in the sector as Nucor, Steel Dynamics and others also rallied with the Dow Jones industrial average and other major averages hitting all-time highs. U.S. Steel spiked 8.25% to 37.38 on the stock market, surging from its 50-day moving average. Nucor advanced 4.6%, almost retaking its 50-day line. Steel Dynamics rose 5.7%, closing just above that support line. AK Steel, which tumbled last month following its earnings report, rebounded 7.7%. Allegheny Technologies, a specialty steel producer, climbed 3.4% as it consolidates since surging 31% on Jan. 24 on its own quarterly financials. Steel makers are among the industries most likely to benefit from Trump's trade, tax and fiscal plans. Trump has vowed to be more protectionist, with Chinese steel imports likely to face new duties and barriers. Trump wants to boost infrastructure spending, and use American steel and other products. And steel companies will like corporate tax cuts too. (Investor's Business Daily)
Source: Other (10.02.2017)

ArcelorMittal JV receives EC approval ArcelorMittal, the world's biggest steel company, has received anti-trust approval from the European Commission with respect to the formation of a joint venture (JV), STEELCAME, with the Cellino Group. ArcelorMittal has a 35% shareholding in STEELCAME, and Cellino Group holds the remaining 65%. ArcelorMittal’s was looking for a strategic partner for its SoluStil business to strengthen its competitiveness, which has been under pressure in the highly challenging market in which it operates. STEELCAME’s assets will consist of four former SoluStil sites in the Rhone-Alpes region, namely La Boisse, Trevoux, Arnas, Montelier, together with Stalobrex, a Polish steel processor owned by ArcelorMittal. The Cellino Group will contribute two assets to the JV, the Italian company Intek, and the Polish company SHL, both active in steel processing and steel components manufacturing. Vijay Goyal, CEO, ArcelorMittal Distribution Solutions, said that the JV agreement concludes the company's search for a strategic partner for its SoluStil business. (Steel Times International)
Source: Other (13.02.2017)

Tata Steel signs definitive agreement with Liberty House Group Tata Steel UK has signed a sale agreement to sell its Speciality Steels business to Liberty House Group for ?100 million. The agreement embraces Tata's electric arc steelworks and bar mill at Rotherham, its steel purifying facility in Stocksbridge and a mill in Brinsworth as well as service centres in Bolton and Wednesbury, UK, and in Suzhou and Xi'an, China. Tata's speciality steels division directly employs around 1,700 people and makes steel for the aerospace, automotive and oil & gas industries. Bimlendra Jha, CEO of Tata Steel UK, said the deal was good news for the Speciality Steels business and for Tata's core UK business. "For Speciality Steels, which is largely independent of our European strip products supply chain, this is an important step forward in securing a future for the business under new ownership," he said, adding that the sale marks important step forward in realising a more sustainable future for Tata's Port Talbot-based supply chain in the UK. (Steel Times International)
Source: Other (15.02.2017)

Steelmakers welcome MEPs’ pragmatic revision of EU Emissions Trading System UK Steel has welcomed the reforms to the EU Emissions Trading System (ETS) announced by MEPs and giving steelmakers hope that future costs might be kept in check. Gareth Stace, director of UK Steel, commented: “The European Parliament should be applauded for finding a balance between the aims of those trying to drive carbon prices higher and the needs of sectors like mine that are trying to compete internationally on tiny margins, often against plants facing none of the same regulatory costs. However, policymakers must continue to focus on maintaining the international competitiveness of vulnerable sectors such as steel as the revisions to the system, which will apply from 2020, go through the remaining stages of the negotiation process.” According to UK Steel, the EU steel association, Eurofer, estimated that the European Commission’s original proposals for reforming the EU ETS after 2020 could add ˆ30 to the cost of producing a tonne of steel. Costs on this level would be disastrous in a market where contracts are won or lost on a few euros per tonne. (Steel Times International)
Source: Other (16.02.2017)

Carbon tariffs and the EU’s steel industry The European Union wants to slash greenhouse-gas emissions to 80% below 1990 levels by 2050. It is on course to cut just half that amount. To get back on track, on February 15th, the European Parliament voted for a plan to raise the cost for firms to produce carbon. It has prompted growing calls for the bloc to tax the carbon emissions embodied in the EU’s imports. At best, such a levy will barely curb emissions. At worst, it could cause a trade war. The EU’s latest reforms try to put up the price of carbon by cutting the emissions allowances firms are granted. They include the EU’s first border tax on carbon, levied on cement imports. Steel firms, also heavy users of carbon, say their exclusion from this scheme is unfair. This week Lakshmi Mittal, the CEO of ArcelorMittal, the world’s biggest steelmaker, offered his support for the tax. Similar proposals in America are also gaining support. This month a group including two Republican former treasury secretaries, James Baker and George Shultz, proposed a similar carbon tax on all imports at the border. Boosters say such proposals remove the distortions carbon taxes cause. (The Economist)
Source: Other (17.02.2017)

DPM's profit from Chelopech Bulgarian mine falls in 2016 Canada's Dundee Precious Metals said its Bulgarian mine Chelopech recorded adjusted earnings before income taxes of USD 49.9 million in 2016, down from USD 61.8 million the year before. The drop in adjusted earnings before income taxes can primarily be explained by the 27% decrease in realized copper prices and impairment charges of USD 7.7 million on certain equipment that Chelopech does not expect to use. The mine recorded net revenue of USD 161.6 million last year, up from USD 131.7 million in 2015, mainly due to higher market gold prices and lower transportation costs. Cost of sales dropped to USD 108.2 million in 2016, from USD 112.6 million the year before. In the fourth quarter of 2016 alone, adjusted earnings before income taxes rose to USD 19.2 million from USD 8.1 million a year earlier. Net revenue in the October-December period rose to USD 45.5 million, from USD 22.6 million in 2015. Europe
Source: Capital (20.02.2017)

Chinese steel, coke prices rise after North Korea coal ban China's steel, coke and coking coal futures rose on Monday after Beijing suspended imports of North Korean coal as part of its efforts to implement United Nations sanctions against the country. The most-active May futures for rebar, a steel product used in construction, rose 2.7 percent by 0155 GMT. Futures contracts for coke and coking coal, used in steel production, were up 2.3 percent and 2.4 percent respectively. "Rebar jumped on anticipation that the ban on North Korean anthracite could lead to higher costs for steel mills that will struggle to find cheaper alternatives in the domestic market," said Zhang Min, a coal analyst based in Zibo, Shandong with Sublime Information Group. China would stop all imports of coal from North Korea from Sunday, the country's commerce ministry said in a notice posted on its website on Saturday. The ban on the isolated country's biggest export will be in place until Dec. 31. (Reuters)
Source: Reuters (20.02.2017)

Thyssenkrupp to sell Brazilian plant for $1.3 bln Thyssenkrupp AG said it would sell its Brazilian steel plant to Ternium SA for $1.33 billion, marking an end to its beleaguered steel operations in the Americas. The transaction, which is part of Thyssenkrupp's strategy to cut steel exposure and focus on capital goods, will bring a EUR 900 million write-down that will likely result in a loss for the fiscal year, but will also reduce net debt, the company said. The deal's enterprise value is EUR 1.5 billion. The sale agreement is the latest sign of consolidation in an industry exploring merger and acquisition opportunities to cope with poor market conditions. Steel prices in Europe have been pinched in recent years by anemic growth in demand, compounded by inexpensive imports from China. Thyssenkrupp began building the Brazilian mill in 2007 on the Atlantic coast in the state of Rio de Janeiro. However, costs spiraled out of control, partly because the facility was built on swampy terrain that couldn't support the plant's foundation. Thyssenkrupp also faced disputes over the mill's environmental impact, further complicating operations. (Marketwatch)
Source: Other (22.02.2017)

Minister Sedlarski: Aurubis Bulgaria generate a new culture in the Bulgarian economy Aurubis Bulgaria is among the generators of a new culture in the Bulgarian economy, not only in socio-economic dimensions, but it also creates a set of economic interconnections between Bulgarian and foreign entrepreneurs, said Economy Minister Teodor Sedlarski, who visited the biggest manufacturer of copper and copper products in Southeast Europe. I admire the leadership of Aurubis for turning the company into one of the best metallurgical plants worldwide. Its activities prove that the future economy is the economy of innovation, he said. Special attention was paid to the performed in 2016 repair of technical equipment of Aurubis Bulgaria, when the company celebrated the 150th anniversary of its founding under the motto 150 years of future. Minister Sedlarski got acquainted with the social policy of the company as well, which is implemented jointly with the municipalities of Zlatitsa and Pirdop, as well as its commitment to the Hospital of Pirdop. The lack of well-developed road and rail infrastructure was referred to by the management as an impediment to investors in the region. The meeting placed an emphasis on procedure Increasing Energy Efficiency in Large Enterprises under OP Innovation and Competitiveness, related to the possibility of a particular interpretation of the restriction under Regulation (EC) ¹ 1301/2013 to finance investments to reduce greenhouse gases. Ministry of economy assured Aurubis Bulgaria that all necessary actions to study the case have been taken, as it has requested assistance from the Executive Environment Agency (ExEA) and the Ministry of environment, with which were held meetings at expert level. A formal letter to the Minister of Environment and Waters Prepared has been prepared which manages, coordinates and supervises the development and implementation of state policy in the field of environmental protection. At the same time misinterpretation of the Regulation should not be allowed, as this would lead to financial corrections not only in the OP but also for the beneficiaries themselves.
Source: Standart (24.02.2017)

Bulgarian tube manufacturer orders ERW mill from Danieli Silva Mash, one of the largest welded tube producers in Bulgaria, has ordered a new high-productivity ERW line from Danieli. The line will be used to produce niche tubular products mainly for high-end automotive and furniture applications. Silva Mash produces 60kt/yr of high-quality tubes delivered to the main European automotive and furniture manufacturers. According to Danieli, the W+K ERW 45/2.5-150 mill is designed to produce round, rectangular, square, semi-oval and elliptical high-quality and high-strength tubes with superior surface finishing, ODs ranging from 10mm to 45 mm and WTs from 0.5mm to 2.5 mm. With a velocity reaching 150 m/min, the new line can offer superior diameter/wall thickness ratio capability which, along with quick product change-over time – less than 60 mins – results in great product flexibility, Danieli claims. (Steel Times International)
Source: Other (24.02.2017)

India extends by five years, anti-dumping duty on some Chinese steel items India has extended anti-dumping duty on some steel products from China by five years, in a bid to retain protectionist barriers and stem the tide of cheap foreign products. The long-term measure, on the import of seamless tubes, pipes and hollow profiles of iron, alloy or non-alloy steel, stands effective as of May 17 last year when the government had imposed a provisional anti-dumping duty, according to the circular. Earlier this month, Steel Secretary Aruna Sharma told Reuters there was a "strong case" for imposing long-term anti-dumping duties on up to 124 steel products over the next two months. Between April and January, India's steel imports fell 37.8 percent year-on-year, data from a government body showed, primarily due to the slew of protectionist steps announced by the government. Indian steelmakers such as JSW Steel, Tata Steel, and Steel Authority of India have lobbied for more measures to protect them from cheaper imports from China, Japan and South Korea. (Times of India)
Source: Other (24.02.2017)

Tata Steel's Kalinganagar plant achieves milestone in metal production Tata Steel's greenfield steel plant at Kalinganagar achieved a major milestone with hot metal production crossing two million tonne mark on February 19, 2017. Located in Odisha's Jajpur district, the plant has one of the largest operating blast furnaces in the country with a capacity of 4,330 cubic metres. The blast furnace, which was blown in on February 28, 2016, achieved the first million tonne of hot metal production on October 9, 2016. For Tata Steel Kalinganagar, it took about 133 days to reach two million tonne production from one million tonne, an official statement issued on Tuesday said. Incidentally, the second million tonne was achieved at a production rate of 7,520 tonnes per day, which is at an operating rate of 2.8 million tonne per annum. Soon after start of commercial production in May 2016, the state-of-the-art steel plant has crossed a number of operational milestones. It has also started exports of hot rolled coils (HRC) and Tata Ferroshots to various countries. (Times of India)
Source: Other (24.02.2017)

Vale chief executive ousted as Brazil seeks new blood Brazil is moving to cast off the last shackles of government influence at iron-ore giant Vale SA -- but not before replacing the chief executive with someone more politically palatable. Murilo Ferreira's six-year contract won't be renewed when it expires in May, the Rio de Janeiro-based company said in a statement on Friday. The announcement came days after Vale unveiled a plan to scrap its controlling shareholder pact amid criticism the miner was run like a quasi state company. While the company didn't say who decided Ferreira's fate, analysts including Upside Investor's Pedro Galdi say politics were involved. He took the CEO job in 2011 as part of a management shakeup driven by then-president Dilma Rousseff. The current government of Michel Temer has sought to distance itself from authorities and executives with perceived allegiances to Rousseff, who was impeached last year. Brazil's presidency didn't respond to e-mails requesting comment. Vale's shares fell 0.5 percent in Sao Paulo on Friday. (Sydney Morning Herald)
Source: Other (27.02.2017)

Carbon-dioxide-free steel industry receives additional funding The Swedish Energy Agency (SEA) is to finance a four-year research project initiated by SSAB, LKAB and Vattenfall and designed to create a carbon-dioxide-free steel industry. The three main players – steelmaker SSAB, minerals company LKAB and Swedish electricity generator Vattenfall – have announced the formation of a corporate joint venture in the spring to spur on the initiative. In total, funding of SEK102 million will be available for the project. According to Jan Mostrom, CEO and group manager of LKAB, the decision by the Swedish Energy Agency to fund the project is a ‘real inspiration’ while Martin Lindqvist, CEO and group manager of SSAB described it as ‘very exciting news’. Magnus Hall, CEO and group manager of power generator Vattenfall called it ‘extremely positive news’. The SEA’s decision to provide additional funding on top of its initial SEK 7.7 million (US$853,000) will open the door for new research projects by organisations such at KTH, Lulea University of Technology, SWEREA MEFOS, Lund University, Stockholm Environmental Institute and RISE, all of whom will work towards a carbon-dioxide-free steel industry. (Steel Times International)
Source: Other (01.03.2017)

China orders aluminum, steel cuts in war on smog China has ordered steel and aluminum producers in 28 cities to slash output during winter, outlined plans to curb coal use in the capital and required coal transport by rail in the north, as Beijing intensifies its war on smog, a policy document shows. The 26-page document dated Feb. 17 and seen by Reuters did not include some stringent steps proposed in a draft policy to slash fertilizer output and introduce a full ban on coal being handled at Tianjin, one of the country's busiest ports. The government has called on steel producers to halve output in four northern provinces - Hebei, Shanxi, Shandong, Henan - as well as Beijing and Tianjin, during the peak winter heating months around late November to late February. The size of the cuts will depend on the level of regions' emissions cuts. Steel mills in Hebei, China's top steel producing province, must meet targets for cutting overcapacity this year, ahead of schedule. Cuts at mills in the cities of Langfang and Baoding should be a top priority, the statement said. Producers must also cut aluminum capacity by more than 30 percent and production of alumina, an ingredient used to make the metal, by more than 30 percent across the 28 cities. (Reuters)
Source: Reuters (02.03.2017)

Baosteel modernises continuous slab caster Baoshan Iron & Steel (Baosteel) has contracted Primetals Technologies to modernise its continuous slab caster no. 3 at its 2.3Mt/yr Shanghai steelworks no. 1. The plan is to replace the machine head and the complete strand-guiding system with a view to modernizing the plant and producing high-quality slabs for demanding applications. According to Primetals, thee modernisation will increase the maximum slab thickness to 357 mm. Once cast, the slabs are further processed in Baosteel's plate rolling mill and hot rolling mill. The modernised casting plant is scheduled to come into operation in Q1 2018. Continuous slab caster no. 3 has been producing slabs with a minimum thickness of 220 mm since 2003. It has a machine radius of 10 metres and a metallurgical length of 34.5 metres. Once modernised, it will be able to cast slabs in thicknesses of 250, 300 and 357 mm in widths ranging from 1200 to 2300 mm. The range of products includes extremely low to high-carbon steels, micro and low-alloyed, peritectic and HSLA grades, structural steels, pipes and sheet steels. Baosteel Group produced around 35 million metric tons of steel in 2015. (Steel Times International)
Source: Other (06.03.2017)

Tata Steel may scrap merger plans with Thyssenkrupp Tata Steel may be considering breaking off talks over a planned merger of its European business with German conglomerate Thyssenkrupp, a UK media report claimed today. The merger talks had been revealed by the Indian steel giant last year as part of a major restructuring of its UK steel business. Such a deal with the German steel major could potentially lead to the formation of a European steel behemoth with blast furnaces in Wales, the Netherlands and Germany. However, 'The Sunday Times' claims that the deal may be under threat due to German pension liabilities. The deal has been slow moving as Tata Steel tries to solve the problem of its own 15-billion-pound British steel pensions scheme. Last month its UK workers had voted in favour of a new pension deal to save their jobs. Nearly 10,000 workers voted in a ballot in favour of moving from a final salary pension to a less generous scheme in return for job safety and Tata's promise of nearly 1-billion-pound worth of investment over the next 10 years. (Economic Times)
Source: Other (06.03.2017)

Steel Delivers Big Payoff Long Before Trump Spends $1 Trillion Long before President Donald Trump has made good on his pledge to spend $1 trillion on U.S. infrastructure projects, investors already are seeing a big payoffs from domestic steel producers. The VanEck Vectors Steel ETF delivered an 82 percent return in the year through Monday as shares surged in the industry it tracks, posting the third-best performance among non-leveraged exchange-traded funds in the U.S. A Bloomberg gauge of iron ore and steel producers --- which just a year ago was at its lowest since at least 2003 -- climbed more than 40 percent. Investors poured about $476 million into industrial-metals ETFs, and billionaire Stan Druckenmiller’s Duquesne Family Office boosted by 80 percent its stake in Nucor Corp., the largest U.S. steelmaker. Trump isn’t the only one giving a boost to an industry that not long ago was mired in a global glut and years of losses. China, the world’s largest steel producer, has cut excess capacity and its exports have slowed after the U.S. and Europe imposed anti-dumping measures. (Bloomberg)
Source: Other (09.03.2017)

Global steel market to reach $865.5 billion by 2020: MarketLine The global steel market reached a value of $753.4 billion in 2015, representing a negative compound annual growth rate (CAGR) of 11.2% from 2011, according to data from research company MarketLine. The company’s latest report states that China is the largest steel producer globally, commanding 49.6% of total market value and exporting more than the North American Free Trade Agreement (NAFTA) and European Union (EU) countries combined. As it accounts for almost half of the global market, changes in the Chinese steel supply and demand impact the global market situation significantly. “The key factor driving recent market contraction is the large oversupply of steel that has forced prices down. In 2015, as demand for steel dropped in China, production volumes took a slump globally," said Goska Kafel, an analyst for MarketLine. Steel prices rose throughout most of 2016 as a protectionist backlash has prompted authorities in the US, the EU and other regions to clamp down on cheap imports from China, the research report by MarketLine stated. (Economic Times)
Source: Other (10.03.2017)

India’s steel exports shoot up by 150 per cent in February, imports decline 46 per cent India’s steel exports in February registered a growth of 150 per cent while imports came down by 46 per cent. The quantum jump in exports comes at a time when the government is providing extensive support to the domestic steel industry by way of trade remedial measures, including anti­dumping. The consumption of steel in February increased marginally by 3 per cent over the same month in 2016, the latest government data showed. Exports in February 2017 (at 0.75 mt) was up by 150 per cent over February 2016, but declined by 15 per cent over January 2017. Imports in February 2017 (0.49 mt) was down by 46 per cent over February 2016 and by 19 per cent over January 2017. The overall crude steel production in February 2017 saw an increase of 8.5 per cent at 8.08 mt. "During April­February 2016­17, crude steel production was 89.08 mt, a growth of 9.3 per cent over the same period last year," it said. The consumption of total finished steel saw a growth of 3.4 per cent in April­February at 76.22 mt. Import of total finished steel at 6.59 mt in the first 11 months of 2016­17 declined by 38.5 per cent over the year­ago period. (Economic Times)
Source: Other (10.03.2017)

BHP-Vale Mine Restart Threatened by Request to Protect Forest The Samarco iron mine in Brazil is facing one more obstacle to restarting operations later this year after a court accepted a request by prosecutors to protect a forested area that encompasses a pit the venture had planned to use for storing waste. The BHP Billiton Ltd.-Vale SA joint venture had hoped to resume operations later this year after a 2015 dam collapse that killed as many as 19 people. The company’s ability to service about $4 billion in debt obligations hinges on the restart. A court issued a temporary ban on “issuing licenses or permits for environmental intervention” in a section of the Uaimii forest, according to a document posted on the Minas Gerais state judiciary’s website dated Jan. 11. In a letter sent last month, state prosecutor Lyssandro Norton Siqueira informed the regulator in charge of granting licenses to Samarco of the court’s decision. Siqueira didn’t respond when asked to confirm that the court’s decision will prevent the granting of licenses to Samarco. (Bloomberg)
Source: Other (13.03.2017)

EUROFER calls for agreement on ‘real recycling’ The Council of the European Union must show commitment towards measuring ‘real recycling’ instead of relying on high targets that may be met through ill-defined means, says the European Steel Association (EUROFER). Commenting on the revision of the Waste Framework Directive, which has been voted through by the EP, EUROFER’s director-general Axel Eggert said that the European Parliament had come up with a reasonable report offering ‘ambitious and practical improvements’ but argued that the European Council needs to remain open-minded about the calculation method at the final recycling stage. According to EUROFER, the revised directive lays the foundation for recognition of industrial co-products as ‘by-products’ and this empowers the European Commission to ‘initiate a harmonised application of the by-products principles’. This might result in a functioning EU market for the use of by-products as manufactured raw materials, replacing virgin raw materials. (Steel Times International)
Source: Other (16.03.2017)

China iron ore jumps 5 pct as steel races to 3-yr high Iron ore futures in China surged more than 5 percent on Wednesday as steel prices rose to their strongest in more than three years on hopes of firm demand as Beijing spurs infrastructure spending and property sales rise. This week marks a sharp recovery for iron ore that could help pull the spot price further away from a one-month low if Chinese steel futures sustain their upward momentum. China’s fixed-asset investment grew 8.9 percent in January and February from the same period last year, largely due to strong property and infrastructure construction, outpacing the 8.1 percent pace for all of 2016. “We continue to believe that China will look to infrastructure investment in 2017 to drive growth as China’s top leaders prepare for elections in November,” Commonwealth Bank of Australia analyst Vivek Dhar said in a note. The most-active rebar on the Shanghai Futures Exchange rose as far as 3,692 yuan ($534) per tonne, its highest since February 2014. Iron ore on the Dalian Commodity Exchange was up 5.5 percent at 724.50 yuan a tonne, having touched a two-week peak of 730.50 yuan earlier. (Hellenic Shipping News)
Source: Other (16.03.2017)

ArcelorMittal Zenica announces major environmental investment ArcelorMittal Zenica has officially inaugurated three new investment projects in Bosnia and Herzegovina with a combined value of more than EUR 12.4 mln. Prior to ArcelorMittal’s arrival in Zenica in 2004, the steel plant had been largely out of operation since 1992, with little or no investment made at the factory for several decades. To mark the occasion, there was a special ceremony on 10th March attended by senior executives from the Federal, Cantonal and City of Zenica authorities. ArcelorMittal Zenica is described as one of the most important industrial companies in the country and its top exporter. Two of the investments are focused on further improvements of the company’s environmental performance and a third is designed to modernise the production of one of the steel plant’s key products, bringing total investments in ArcelorMittal Zenica to more than EUR 160 mln, including EUR 50 mln specifically aimed at environmental improvements. ArcelorMittal Zenica is the first steel plant in the world to have industrial-scale hybrid filtration technology installed in its sinter plant. (Steel Times International)
Source: Other (17.03.2017)

Essar steel guns for defence market Indian integrated steelmaker Essar Steel, which has an annual capacity of 10Mt/yr, has developed steel grades for land and naval defence applications with a view to tapping into a market worth over US$200 billion over the next half decade. According to MD & CEO Dillip Oommen, the defence sector is witnessing exponential growth and Essar Steel wants a slice of the pie. “We have developed an excellent track record by successfully supplying steel to many defence projects,” said Oommen, adding that the company’s past record in the defence sector has encouraged the business to expand its product portfolio ‘for this segment’. With defence in mind, Essar Steel has developed a 1.5Mt/yr state-of-the-art steel plate facility at Hazira. The plant offers three types of rolling capabilities including thermo-mechanical controlled rolling, normalised rolling and temperature-controlled rolling. Two types of heat treatment – quenching and tempering, and normalising – are also offered at the site and this means that the Hazira plant is capable of producing any grade of steel for defence applications. (Steel Times International)
Source: Other (20.03.2017)

Consortiums bid for Ilva steel plant The world’s largest steelmaker ArcelorMittal and Marcegaglia, an Italian steel processor with global reach, have offered to buy the Ilva steel plant for EUR 1.6 billion (US$1.72 billion) trouncing a EUR 1.2 billion bid from AcciaItalia. AcciaItalia comprises Indian steelmaker JSW, Italian steelmaker Arvedi, Italy state holding company CDP and Leonardo Del Vecchio’s Delfin business. Taranto-based Ilva was taken over by the Italian government in 2015 and sequestered by magistrates three years earlier for causing environmental and health problems. It has long been a thorn in the side of the Italian steel industry. Despite having a production capacity of 11Mt, last year Ilva produced 5.8Mt. Both consortiums involved in the bid have similar investment plans for the Ilva plant that involve upping output and cleaning up the operation. ArcelorMittal-Marcegaglia intends to invest EUR 2.3 billion while rival bidder AcciaItalia is planning a EUR 3 billion investment. Italian state commissioners have until 6 April to ‘pick a winner’ and their decision would need to be ratified by Italy’s Industry Ministry, it is claimed. (Engineering News)
Source: Other (22.03.2017)

Spanish steel mill happy with revamped slab caster Spanish steel plant ArcelorMittal Asturias (Aviles) reports that its slab caster number one is already producing at the same level as before the revamp by SMS group. The company had placed an order with the German steel production specialist for what SMS group describe as a ‘comprehensive revamp’ of the plant’s two-strand slab caster number one. The aim, claims the company, was to rebuild the bow-type caster into a vertical bending caster. The end result is a caster that produces slabs with a thickness of 235mm and widths of between 800mm and 1,600mm. The equipment’s maximum casting speed is rated at 1.9 metres per minute, claims SMS group. According to SMS group, from the mold to the run-out area, the caster was completely rebuilt and is equipped with a remote adjustable mold, hydraulic oscillation and a width-dependent spray cooling system (water cooling) in the machine head. (Steel Times International)
Source: Other (23.03.2017)

World crude steel production up 4.1% in February 2017 World crude steel production for February 2017 totalled 126.6Mt, according to figures released by the World Steel Association (worldsteel). These latest figures represent a 4.1% increase on February 2016 figures and worldsteel stresses that the 2016 figure was based on a 29-day month. In China, crude steel production for February 2017 was up 4.6% on last year’s figure and totaled 61.2Mt, while in Japan 8.3Mt of crude steel was produced, down 0.1% on the previous year. India’s February 2017 figure was 8.1Mt, up 8.9%, and in South Korea crude steel production was up 8.3% to 5.5Mt. In the European Union, Germany was the star player with an increase in crude steel production for February 2017 up 2.6% at 3.5Mt. In Italy the figure was up 1.2% to 2Mt. But it’s not all good news. In France crude production was down 5.8% on last February at 1.2Mt and in Spain it was down 4.6% at 1.1Mt. In Turkey crude steel production for February 2017 was 2.7 Mt, up 15.6% on February 2016. (Steel Times International)
Source: Other (27.03.2017)

Steel Pioneer Thyssenkrupp Is Getting Out of Steel The boss of Thyssenkrupp AG is finally on the brink of putting steel in the German company's past -- if he can sever ties with its European steel legacy. The storied industrial firm, which traces its roots to the early 19th century, took a big step away from its once-core steel business when it unexpectedly announced late last month the sale of the last of its beleaguered steel assets in the Americas, a Brazilian plant. The deal, flagged by The Wall Street Journal in October, is the most concrete sign to date that Chief Executive Heinrich Hiesinger is driving forward the company's transformation from staid steel giant into a lean capital-goods operation. Investors are watching to see whether Mr. Hiesinger can deliver on the next part of his strategy: separating Thyssenkrupp's European steel business. That unit has been squeezed by a protracted steel glut and inexpensive steel imports from China, amid continuing consolidation in the industry. Mr. Hiesinger has said he wants to remake Thyssenkrupp around high-margin capital goods such as elevators, sophisticated car components and submarines. (Dow Jones Newswires)
Source: Other (27.03.2017)

KCM produced a record amount of zinc in 2016 Non-ferrous Metals Smelter (KCM) in Plovdiv achieved its highest production levels of zinc ingots in its 55-year history. A record 74,336 tons are the result of improved productivity and efficiency in zinc production, the company said. The potential for reaching specified performance extraction of zinc increased after the successful modernization of the technological and technical base over the past few years. At the end of 2014 KCM ended an investment of EUR 140 mln, which modernized the production of zinc and built a new lead production. Recently the company announced that in January the new lead production unit were cast record 7200 tonnes of lead. This achieved the set by design parameters, which is generally achieved within 6-7 years.
Source: Capital (28.03.2017)

China Stonewalls U.S. Steel's Cybertheft Lawsuit US's ongoing battle against illegal hacking and cybertheft waged by foreign countries has reached a boiling point. In U.S. Steel's much publicized cybertheft lawsuit against China, a complete lack of cooperation and blatant stonewalling by a Chinese government-owned steel company forced the American steel company to temporarily withdraw one portion of its case. U.S. Steel had claimed Chinese government-owned Baosteel hacked into U.S. Steel's computers and stole trade secrets for advanced, high-strength steel. To add insult to the alleged cybertheft, China is presently manufacturing this high-strength steel at a breakneck pace and is believed to be rerouting hundreds of thousands of tons of steel back into the U.S. through other countries to avoid tariffs — further undermining the US steel manufacturing industry. It is widely believed that China has created an army of cyberthieves numbering in the tens of thousands that work every day to hack into U.S. companies and steal anything of value. U.S. Steel was praised for its legal action in this trade-secret case, which could have given the world an eye-opening, inside look into the actions of the Chinese government. (Investor's Business Daily)
Source: Other (29.03.2017)

UK Steel welcomes CfD exemption for steel industry UK Steel has welcomed the British Government’s plan to exempt specific heavy industries – including steel – from some of the costs associated with its Contracts-for-Difference (CfD) scheme. Companies that bid for CfDs and are guaranteed a specific price for a set period of time for the low-carbon energy they produce. The scheme is funded by a levy on energy suppliers who in turn pass on the costs to end-users. “With the introduction of this exemption, we move another step closer to the comprehensive protection from climate change policy costs our sector has long called for. The long term certainty that the exemption provides is a hugely important element in delivering a more competitive business environment for steel makers in the UK, placing them on a more even footing with their EU competitors,” said Gareth Stace, director of UK Steel. According to Mr Stace, however, more can be done on industrial energy costs. He said that electricity prices for the sector remain ‘stubbornly high’ – in some cases 50% higher than in Germany. (Steel Times International)
Source: Other (30.03.2017)

U.S. imposes duties after finding seven producers dumped steel plate The U.S. Department of Commerce made a final finding that seven foreign producers dumped certain carbon and alloy steel cut-to-length plate in the U.S. market, allowing it to impose duties ranging from 3.62 percent to 148 percent, Commerce Secretary Wilbur Ross said. The determinations of dumping, or selling a product below its fair price, apply to imports of CTL plate from Austria, Belgium, France, Germany, Italy, Japan, South Korea and Taiwan, Ross said. In addition, there was a final finding that South Korean imports were subsidized, leading to a countervailing duty of 4.31 percent being slapped on those products, he said at a department event. "A healthy steel industry is critical to our economy and manufacturing base, yet our steel industry today is under assault from foreign producers that dump and subsidize their exports," Ross said. In 2015, imports of CTL plate from the seven producers totaled $732 million, with those from Austria, Belgium, France, Germany, Italy, Japan, Korea and Taiwan valued at an estimated $14.2 million, $19.8 million, $179 million, $196.2 million, $37 million, $54.9 million, $210 million and $21 million, respectively. (Reuters)
Source: Reuters (31.03.2017)

Germany: EU should consider trade complaint in US steel spat Germany's foreign minister says the European Union should consider filing a trade case against the United States over Washington's decision to impose anti-dumping duties on steel imported from Europe. Among the companies that would be affected by the tariffs are two German steelmakers, Salzgitter AG and Dillinger Huette. Sigmar Gabriel said in a statement Friday that the U.S. calculations contradicted World Trade Organization rules and were intended to protect U.S. steelmakers "by putting the better German steel industry at a disadvantage." Gabriel noted that it was the first anti-dumping procedure launched by the new U.S. administration. He called the U.S. move unacceptable, and urged the EU to examine whether to file a WTO case. (ABC News)
Source: Other (03.04.2017)

Mill revamp boosts Russian steelmaker’s capacity Russian steelmaker PAO Severstal has boosted production from its tandem cold mill, thanks to a revamp by SMS group. The mill, located at Severstal’s Cherepovets facility in north west Russia, was revamped ‘in an exceptionally short time’ according to SMS group, thanks to the company’s Plug & Work concept and high levels of co-operation between steelmaker and technology provider. The revamp involved the complete replacement of the mill’s entry section and the four mill stands plus the installation of state-of-the-art rolling technology including CVC plus technology and other actuators for the four high mill stands, the X-Pact automation system, X-Shape flatness measuring and control system, and an assistance system to optimise threading and tailing out at each stand. “A major challenge was to implement the replacement of the complete stands,” said SMS group. “The individual construction phases had to be scheduled such that the production was not to be affected until the main shutdown of the mill,” the company added. In three of the mill stands the existing Leonard-type rolling motors were retained for further use, but relying upon cutting edge controls – which proved a challenge. (Steel Times International)
Source: Other (05.04.2017)

Here's how much more steel China will need for its new megacity China's new project to build a megacity on the outskirts of Beijing will drive steel demand, with the country likely gobbling up an extra 12 to 14 million metric tons of the commodity a year if plans are implemented in 10 years, Citi Research analysts said. While the amount will just be a minuscule proportion of the nearly 1.63 billion tons in global crude steel production last year according to the World Steel Association, it will nonetheless provide "greater certainty on continuation of Chinese steel demand at high levels," wrote Citi analysts. The global steel industry has been under duress in recent years, with largest producer and consumer China under scrutiny for alleged dumping of the commodity on international markets due to domestic over-capacity. The newest special economic zone of Xiongan in Hebei was announced on Saturday in a bid to boost domestic growth in a province that has been hit by massive job layoffs from heavy industries as China moves to maneuver economic growth away from manufacturing toward services. (CNBC)
Source: Other (06.04.2017)

New fund to help recast steel sector Four entities signed a framework agreement on Friday to establish China's first steel industry restructuring fund. The fund, which may be launched in June, will seek to push forward the steel industry's restructuring and upgradation. It is expected to have 40 billion yuan ($5.88 billion) to 80 billion yuan in corpus initially. China Baowu Steel Group's Hwabao Investment Co Ltd and US-China Green Fund will hold 25 percent each, WL Ross & Co 26 percent and China Merchants Finance Holdings Co Ltd 24 percent. Baowu Steel is China's largest steel-maker and the world's second-largest by crude steel output. According to Ma Guoqiang, Baowu Steel's chairman, the fund is tasked to help the Chinese steel industry to eliminate excess capacity, speed up restructuring, raise industry concentration and promote international cooperation. Ma Weihua, former president and CEO of China Merchants Bank, is tipped to chair the joint venture that will run the fund. (China Daily)
Source: Other (10.04.2017)

Australia’s mining industry addressing downsize in China steel production China’s move to reduce air pollution in large cities by limiting its need for iron ore and coal production over the next five years won’t slow Australia’s mining industry, a federal government report has claimed. Current forecasts expect Australia’s resources and energy commodity export earnings to reach a record high of $215 billion in 2016-17 – a 35 per cent increase from 2015-16. While export earnings are also forecast to remain at the same in 2017-18, Mark Cully, chief economist for the department of industry, innovation and science, believes the future for Australia’s resources and energy sector is strong. “The expected rise in export earnings has been driven by spikes in metallurgical coal and iron ore prices, supported by the resurgence of China’s steel sector, as well as temporary supply disruptions,” Cully said. “The report suggests the price gains are not expected to last over the medium term. Production of steel in China is expected to decline over the next five years, as construction activity slows.“ (Australian Mining)
Source: Other (10.04.2017)

India Rising as Steelmakers to Beat Japan in Global Rankings India is poised to dislodge Japan to become the world’s second-largest steelmaker as mills ramp up production to record levels to feed growing demand for infrastructure, new homes and consumer goods, highlighting the potential for industry’s growth outside China. Output will rise from 103 million tons this year to 110 million in 2018, and 118 million by 2019, according to projections released Friday by Australia, the top shipper of steel-making ingredients such as iron ore. The growth will see India draw level with Japan next year and eclipse it after that, according to the report. By 2022, India will pump out 146 million tons to Japan’s 118 million. Steelmakers in Asia’s third-largest economy are boosting supplies after Prime Minister Narendra Modi promised to spend more on infrastructure and power, and policy makers acted to resist a tide of cheap Chinese exports. Shares in local producers including JSW Steel Ltd. and Steel Authority of India Ltd., known as SAIL, have surged over the past year, buoyed by plans for expansions. “Steel-consumption growth is expected to be driven by substantial infrastructure investment, growth in residential construction, and the growth of the shipbuilding, defense, automobile and manufacturing sectors,” the Department of Industry, Innovation and Science said in the report, which tracks trends in commodity markets related to Australian resource exports. /BLOO
Source: Other (12.04.2017)

German Union Warns Thyssenkrupp Against Tata Steel JV Germany’s biggest union, IG Metall, is opposing a joint venture between Thyssenkrupp AG, the nation’s top steelmaker, and Tata Steel Ltd. The project is “high risk” for Thyssenkrupp, said Detlef Wetzel, who represents IG Metall for the steel unit at the Essen-based company. The joint venture will lead to job losses and the closing of steel factories in Germany, according to Wilhelm Segerath, chairman of Thyssenkrupp’s works group council. Tata Steel has been in talks with Thyssenkrupp and others for a joint venture of their European steel businesses since last year as part of its strategy to increase profitability amid oversupply in the global market. Thyssenkrupp’s Chief Executive Officer Heinrich Hiesinger in November said that pension liabilities were a major stumbling block to an accord. “Any possible joint venture will have to be based on a convincing business plan with corresponding synergies,” Hiesinger said in January. Thyssenkrupp shares slid 1 percent to 22.40 euros at 5 p.m. in Frankfurt. (Bloomberg)
Source: Other (12.04.2017)

Industry assails Trump’s ‘Buy America’ steel plan President Trump is facing criticism from oil companies, pipeline operators and foreign governments for his proposal to require that domestically produced steel be used in pipelines that are built in the United States. The oil and pipeline sectors say Trump’s “Buy America” idea would increase costs, add to uncertainty and threaten his goal of boosting the domestic fossil fuel industry. “A number of hurdles unique to pipeline-grade steel and pipe manufacturing must be overcome to expand domestic pipeline production and manufacturing,” a coalition of oil, natural gas and pipeline associations wrote to the Commerce Department, which took preliminary public comments on the matter up until last week. “If these hurdles are not overcome, government action to increase domestic steel and pipe production could have the unintended result of reducing or significantly delaying new pipeline projects and limiting U.S. pipeline job growth,” they wrote. (The Hill)
Source: Other (13.04.2017)

Shanghai aluminium surges after output cuts, China data supports Shanghai aluminium soared to nearly a four-year high on Monday after fresh capacity cuts in top producer China, while the country's robust first-quarter growth underpinned its demand outlook for most metals. Three new aluminium projects with a capacity of 2 million tonnes have been halted in Xinjiang in western China for violating rules aimed at curbing capacity, state-owned China Securities Times reported on Sunday. Shanghai Futures Exchange aluminium jumped more than 4 percent on the news, with solid growth from China's factories brightening the outlook for the complex. China's economy grew 6.9 percent in the first quarter from a year earlier, slightly faster than expected, supported by a government infrastructure spending spree and a frenzied housing market that is showing signs of overheating. China's factory output rose 7.6 percent in March from a year earlier, while fixed-asset investment grew 9.2 percent in the first quarter, both beating expectations. (Reuters)
Source: Reuters (18.04.2017)

Trump's 'Buy American' edict may have little impact on US steel industry US President Donald Trump's "Buy American, Hire American" executive order left questions about how the government would enforce the order and whether it would make a real difference in output and employment, according to steel executives and analysts. "Buy American" provisions already exist in US law but policing them has been difficult because of waivers granted to foreign companies that undercut their US counterparts on pricing. Earlier on Tuesday, Trump ordered a review of government procurement rules favouring American companies to see if they are actually benefiting, especially the US steel industry. Trump's executive order promises to properly police those provisions, but avoided detail about how that will happen. Charles Bradford of Bradford Research said focusing on "Buy American" for US steel does not take into account that some steel products - including tin plate and semi-finished products - are not made in the United States. So if enforced improperly, it could cause supply problems in a US market in which up to 25 per cent of steel was imported in the first quarter of this year. (Reuters)
Source: Reuters (19.04.2017)

US Steel close and re-open Midwest steel plant Following the discovery of Hexavalent chromium in a waterway near the Indiana Dunes National Lakeshore, close to Lake Michigan, US Steel shut down operations at its Midwest Plant in Portage Indiana. Less than a week later, and having fixed an accidental chemical leak, the plant is up and running again. According to US Steel, “The controlled, phased and highly monitored restart at our Midwest plant, which began on Friday 14 April, is now complete. At present we have encountered no additional issues. All water sampling and visual inspections performed during the restart process at around the outfall where the process release occurred, within Lake Michigan, including the public water intake, and adjacent shorelines have shown no elevated hexavalent chromium levels.” US Steel said it takes all incidents very seriously and is fully committed to investigating additional corrective actions needed to prevent a future occurrence. “We remain committed to protecting the environment, to the communities in which we operate and to the safety of our employees,” the company said. (Steel Times International)
Source: Other (20.04.2017)

Asias largest manganese ore reserve found in China A 203-million-tonne reserve of manganese ore, the largest in Asia valued at USD 14.5 billion, has been discovered in southwest Chinas Guizhou Province. Pujue manganese ore lies in the mountains of Songtao Miao Autonomous County and was discovered by Guizhou provincial geology and mineral exploration bureau, the local government said in a statement. It said the ore had a potential value of more than 100 billion yuan (USD 14.5 billion). China is the worlds largest producer and consumer of manganese, widely in making batteries and magnetic materials. Scientists have discovered four large manganese ore deposits in Guizhou Province with combined reserves of 600 million tonnes in recent times, said Chen Yuchuan, a geologist and academician with the Chinese Academy of Engineering. "The newly discovered ore deposits make up 60 per cent of Chinas total proven reserves and will greatly reduce the countrys reliance on imports," he said. (India Today)
Source: Other (21.04.2017)

Trump targets cheap Chinese steel in probe President Donald Trump on Thursday launched a trade probe against China and other exporters of cheap steel into the U.S. market, raising the possibility of new tariffs and sending shares of some U.S. steel makers up over 8 percent. Citing concerns about national security, Trump made the announcement at a White House ceremony with U.S. steel executives from Nucor Corp, United States Steel Corp and TimkenSteel Corp alongside Commerce Secretary Wilbur Ross, a billionaire businessman who made part of his fortune investing in the steel business. Trump won many votes in industrial states like Michigan and Pennsylvania with a pledge to boost manufacturing and crack down on Chinese trade practices. China is the largest national producer and makes far more steel than it consumes, selling the excess output overseas, often undercutting domestic producers. The unusual step of launching an investigation comes as Trump is pressuring China to do more to rein in an increasingly belligerent North Korea. When Chinese President Xi Jinping visited Trump in Florida earlier this month, Trump raised the possibility of using trade as a lever to coax China to do more. (Reuters)
Source: Reuters (21.04.2017)

Carrier passed KCM by number of workers A transport company from Plovdiv has surpassed KCM in terms of number of workers. This is the data quoted in the Economic Yearbook for Plovdiv region. According to the statistics, PIMK provides 1657 employees, while 1417 people work in KCM. First by this indicator in the region is VMZ Sopot with 2616 employees, followed by Liebherr with 1685 workers. Top 5 also includes the water supply with 1210 employees. The figures show a rise in economy in Plovdiv, with the number of working companies rising by 692 and reaching 36,126. The final financial result of the enterprises in the region for 2015 is a profit of BGN 1.252 billion or up 44.7% compared to the previous year. Positive financial result was reported by 69.6% of the total number of companies, a loss - 17.8%, and 12.6% reported flat results.
Source: Maritsa (24.04.2017)

More than 540 thous tons of ore was harvested in Chelopech for three months A total of 540.6 thousand tons of ore has acquired Dundee Precious Metals Chelopech in the first quarter of the year. The data is from the Canadian owner Dundee Precious Metals (DPM). The amount of copper and gold produced in the form of concentrate is according to the estimates. The company's financial results will be released early next month. Excavation works in Krumovgrad, where DPM builds a gold ore mining and processing complex, are under way, with the pouring of the concrete being expected by the end of April, the company said. The mining is planned to begin by the end of 2018. Earlier this year, the European Bank for Reconstruction and Development made a share investment in the company, investing 43.7 million Canadian dollars. The funds will be used for the project in Krumovgrad.
Source: Capital (26.04.2017)

March 2017 crude steel production up 4.5% says worldsteel World crude steel production for the 67 countries reporting to the World Steel Association (worldsteel) was 145Mt in March 2017, a 4.6% increase compared to March 2016. World crude steel production was 410.5Mt in the first three months of 2017, up 5.7% compared with the same period in 2016. Asia produced 280.6Mt, an increase of 5.4% when compared with the first quarter of 2016, and the European Union produced 42.5Mt, up 3.8%. North America’s crude steel production during Q3 2017 was 29.3Mt, up 7.1%, while the C.I.S. produced 25.9Mt of crude steel an increase of 4%. In March 2017 China’s crude steel production was 72Mt, an increase of 1.8%, and Japan's was 8.9 Mt, an increase of 1.8% when compared to March 2016. In the EU, Germany produced 3.9 Mt of crude steel in March 2017, an increase of 1.9% over the same period last year while Italy produced 2.2 Mt, an increase of 9.5%. Spain produced 1.4 Mt of crude steel, up 15.7% on March 2016, and France produced 1.3 Mt, up by 18.1% compared to March 2016. (Steel Times International)
Source: Other (26.04.2017)

US Steel plunges 25% as the sector championed by Trump just last week completely rolls over After a rally last week in the wake of President Donald Trump's announcement that he would be kick starting a probe into imported steel, steel stocks tumbled Wednesday as weak earnings and slashed guidance from United States Steel sent worries through the sector. U.S. Steel reported a quarterly loss of $1.03 per share, according to Thomson Reuters. That was quite a miss, as analysts polled by were expecting a quarterly profit of 35 cents per share. The company also slashed guidance, expecting full-year 2017 earnings of $1.50 per share, half the Street's expected figure of $3.05 per share. Released after the bell Tuesday, the earnings report sent U.S. Steel's stock into a 26 percent nosedive Wednesday. "While our segment results improved by over $200 million compared with the first quarter of 2016, operating challenges at our FlatRolled facilities prevented us from benefiting fully from improved market conditions" U.S. Steel CEO Mario Longhi said in a release. "However, we continue to be encouraged by the strength of our European business and we are also seeing improving energy markets." (CNBC)
Source: Other (27.04.2017)

China’s steel industry urged to continue downsizing A senior figure in the Chinese steel industry has called for further cuts to steel capacity, saying the sector remains saturated, despite increased profits and production of steel mills in the first quarter. “The whole industry needs to press ahead with cutting capacity and de-leveraging,” said Gu Jianguo, executive vice chairman of the China Iron and Steel Association (CISA). He warned against steel price volatility and falling exports in an article published Monday on the CISA website. Gu’s remarks came after unexpectedly strong performance in the steel sector this year. Thanks to recovery in the broader economy, CISA’s members posted combined profits of 23.3 billion yuan ($3.4 billion) during the January-March period, in contrast with a 8.75 billion yuan of losses a year ago. China’s total crude steel output in the same time rose 4.6 percent year-on-year, with daily production in March hitting a record high. Encouraged by the the unexpected good news, unfounded optimism is blooming in the oversupplied sector, which Gu describes as “near-sighted.” Highlighting lingering problems, Gu said “more observation is necessary” to forecast the full-year economic outlook, and steel demand and consumption. (Hellenic Shipping News Worldwide)
Source: Other (27.04.2017)

Global Steel Demand Is Forecast to Grow More Than Expected Global steel demand will grow more than previously forecast in 2017 due to a recovery in developed economies and accelerating growth in emerging and developing markets, especially Russia, Brazil and India, an industry body said on Friday. Demand is on course to expand 1.3 percent in 2017 to 1.535 billion tonnes and a further 0.9 percent in 2018 to 1.549 billion tonnes, World Steel Association (Worldsteel) said. Worldsteel, representing more than 160 steel producers accounting for 85 percent of global production, had forecast in October that demand would rise 0.5 percent this year. The steel industry, worth about $900 billion a year, is seen as a gauge of the world's economic health. "We expect that Russia and Brazil will finally move out of their recessions. After the demonetisation shock, the Indian economy is expected to resume growth," Worldsteel said. "However, China, which accounts for 45 percent of global steel demand, is expected to return to a more subdued growth rate after its recent short uplift," it said in a statement. (Fortune)
Source: Other (28.04.2017)

Duty to protect SA steel industry South Africa Trade and Industry Minister Rob Davies said on Monday he has signed off on a safeguard duty for hot rolled coil steel, but said the measure was subject to informing the World Trade Organisation (WTO). Through so-called safeguard measures, WTO members such as South Africa are allowed temporarily to restrict imports of a product if increased imports of that product pose a threat a local industry. The move is intended to shield the local steel industry from cheaper imports in the face of a global overcapacity. At the launch of the ninth annual iteration of the Industrial Policy Action Plan (IPAP) in Johannesburg, Davies said the government wanted to retain primary steel-making capacity in South Africa. “This is for a number of reasons, but the obvious one is that we are an iron-ore producer. If we lose primary steel-making and we continue to be an iron-ore producer, we will be moving further down the value chain,” he said. Davies said the government was aware of the problems facing local manufacturers. (Business Report)
Source: Other (09.05.2017)

Serious funding for SSAB’s SmartSteel project Swedish steelmaker SSAB is to receive serious funding – to the tune of SEK 10 million (US$1.1 million) – for its SmartSteel research and development project. Eva Petursson, head of R&D at SSAB said she was ‘extremely pleased’ about Vinnova’s support, claiming it will enable the company to ‘continue to develop the ecosystem for SSAB SmartSteel’ together with its new research partners and companies. Support for the ecosystem around SSAB SmartSteel should be seen as a part of the Government of Sweden's focus on digitisation and new industrialization, claims SSAB. The idea behind SmartSteel is to make available information and instructions relating to any steel item, regardless of where it is produced. Each link in the chain can then utilise and accumulate information. “This creates a basis for both the circular and platform economy,” the steelmaker claims, adding that the result will be less waste than at present and improved productivity and flexibility. (Steel Times International)
Source: Other (09.05.2017)

Steel Industry Stock Outlook - May 2017 Steel stocks were propelled “big league” following Donald Trump’s election win in Nov 2016, following a torrid year before that. The change in momentum can basically be attributed to expectations of significant infrastructure spending under the Trump administration. While nothing concrete has materialized from the new administration, particularly on the infrastructure spending front. But the industry continues to benefit from the sustained healthy demand in the automobile and construction sectors. The new administration’s aggressive trade policies are also expected to provide more protection to the U.S. steel industry. U.S. steel makers recently applauded the Trump Administration's executive actions geared at improving duty collection along with identifying and addressing root causes of unfair trade practices that have cost the U.S. government billions of dollars in lost revenues. The executive order directs U.S. Customs and Border Protection (“CBP”) to chalk out a plan to lessen importer fraud and ensure adequate duty collection. (Zacks Equity Research)
Source: Other (09.05.2017)

Germany's Shrinking Steel Industry Collides With Key State Vote The threat of Thyssenkrupp AG shedding thousands of steel jobs in Germany’s most populous state is turning into a campaign issue less than two weeks before the biggest electoral test heading into the national vote in September. With polls suggesting the Social Democratic Party at risk of losing its governing majority in a vote in North-Rhine Westphalia on May 14, local leaders from the SPD and Chancellor Angela Merkel’s Christian Democratic Union are jockeying to defend the country’s steel workers. Thyssenkrupp, formed in 1999 through the merger of two iconic German companies, has been caught up in the political spotlight as it tries to restructure its steel operations in response to a global glut depressing steel prices. Unions oppose that effort, which they say will result in more than 4,000 job loses, as well as a proposal to merge the operations with Tata Steel Ltd. While Merkel defends the free trade that benefits German exports, the country’s shrinking steel industry, which has shed two-thirds of its jobs in the last four decades, shows how advocating for globalization can be a double-edged sword, even in a nation where unemployment is at a record post-reunification low. (Bloomberg)
Source: Other (09.05.2017)

Nucor CEO is confident steel investigation in US will go industry's way The US Commerce Department's Section 232 investigation into the impact of steel imports on national security will result in a positive finding for domestic steelmakers, Nucor's chairman, CEO and president, John Ferriola, predicted in an interview with S&P Global Platts. "I'm confident that the Commerce Department will come out with a different finding [than the steel-related investigation in 2001] simply because of the [current] threats of global steel overcapacity and the resulting surge of illegally traded imports," he said Monday night. In 2001, Commerce investigated the impact of iron ore and semifinished steel imports under Section 232 of the Trade Expansion Act of 1962, but recommended no action. Ferriola's confidence in a favorable recommendation for domestic industry stems, in part, from the vibe he picked up at the White House when President Trump signed the executive memorandum directing the investigation. (Platts)
Source: Other (10.05.2017)

Port Bourgas invested EUR 15 million in a copper concentrate terminal A facility for unloading and storing copper concentrate, built at the port terminal Bourgas-East 2, was launched by the Minister of Transport Ivaylo Moskovski. The concessionaire BMF Port Bourgas invested EUR 15 mln in its construction. It will be used by Aurubis Bulgaria, it has a capacity of 60,000 tons and is of the last generation. The transportation of the copper concentrates from Pirdop to Bourgas is done by rail transport. The investment in the new facility is confirmation of the effect of the concessions, Minister Moskovski said. "Using the concession as a mechanism for developing the transport system is one of our priorities. Providing state-owned sites for management by private investors is the best approach for the development of transport companies," he said. BGN 30 million were provided by the state as additional support to the development of the ports in Burgas, the minister also said.
Source: 24 chasa (12.05.2017)

Global steel industry at ‘inflection point’: worldsteel head The global steel industry has reached “an important inflection point” that requires steelmakers to consider new strategies to survive, World Steel Association Director General Edwin Basson said Thursday. Speaking during the Eurometal World Steel Distribution & SSC Summit in Dusseldorf, Basson said current global installed steel capacity — at some 2.39 billion mt — is already enough to meet supply requirements through 2035. Finished steel demand is likely to be around 1.535 billion mt in 2017, up only 1.3% from the previous year, and nearly 1.549 billion mt in 2018, an increase of 0.9% year on year, according to worldsteel. Strong steel demand growth in developing countries will offset stabilizing demand in developed economies, but it means mostly flat overall global demand for likely the next two decades or more, Basson said. Combine those factors with declining trends in steel use — due in part to increased production of high-strength, lightweight steels and a sharper focus on reuse and recycling — and the outcome is clear. (Hellenic Shipping News)
Source: Other (12.05.2017)

As green shoots emerge in steel sector, banks hope to recover their money Rising domestic Indian demand, supportive government policies and a stable macro environment have raised hopes of a revival in the steel sector, which has been plagued by high non­performing assets (NPAs) over the past five years. India’s steel output rose 11 per cent to 101.3 million metric tonnes in FY17, making it a net exporter of the metal for the first time in three years. India is likely to overtake Japan to become the second­largest producer of steel by 2017­end, according to the Indian Steel Association. Demand has picked up aided by the government’s push to build infrastructure. Analysts said the upswing in the sector will help banks recover NPAs or liquidate assets faster. “Till last year, there was no light at the end of the tunnel, now there is some hope,” said Purvesh Shelatkar, senior vice president (institutional sales), Centrum Broking. “Our estimates are that steel sector NPAs are at Rs. 1.25 lakh crore. There is now a chance that at least a part of the loans would be recovered.” (Economic Times)
Source: Other (12.05.2017)

Aurubis Bulgaria with a new port warehouse for EUR 15 million A new copper warehouse for Aurubis Bulgaria is already operating in the port of Burgas. What is special is that the material is handled in closed spaces, thus avoiding loss and scattering. The investor in the project, worth EUR 15 million, is the concessionaire of the terminal BMF Port Burgas. The grantor undertakes to use the equipment for at least 20 years and to guarantee certain minimum quantities of goods. By the end of the year, a sulfuric acid terminal is expected to be launched for Aurubis. The additional investment will be in the order of EUR 14 million. The project actually includes various copper processing facilities for resources received by Aurubis from abroad. The raw material produced in Bulgaria covers only about 30% of the Pirdop plant's capacity, so the rest is imported. The investment includes ship loading, transportation, automated weighing, warehouse storage and rail loading wagons to the Pirdop plant.
Source: Capital (15.05.2017)

Europe steps up its fight against cheap Chinese steel The European Commission has announced new anti-dumping duties on pipes and tubes made from steel and iron in China, its latest attempt to stop the flow of cheap metal from the country. The duties of 29% to 55% were imposed after an investigation found that Chinese firms were dumping steel into Europe at unusually low prices that hurt local competitors. Dominique Richardot, a representative for the European Steel Tube Association, said the duties were "very good news" because they would level the playing field. Wang Hejun, an official at China's Ministry of Commerce, said the EU had taken an unfair approach to its investigation. Wang urged the EU to treat Chinese firms impartially and fairly. It's not the first time that China has been accused of dumping cheap steel on world markets. The Chinese construction boom of the past decade meant domestic steelmakers could rely on steadily growing demand at home. But the building bonanza is over, and China's economy is experiencing a broader slowdown. Some of the excess production has been sent abroad and sold at very low prices, making it difficult for U.S. and European producers to compete. (CNN)
Source: Other (15.05.2017)

Aurubis Bulgaria copper concentrate throughput up 7% y/y in H1 FY 2016-2017 Hamburg-based copper producer Aurubis said on Monday the copper concentrate throughput of its Bulgarian smelter rose 7% year-on-year to 651,000 tonnes in the first six months of its 2016/2017 fiscal year started October 1, 2016. In the second fiscal quarter alone, the copper concentrate throughput of the Pirdop smelter in Bulgaria rose by an annual 7% to 324,000 tonnes, Aurubis said in an interim financial report. Sulfuric acid output at Pirdop rose 8% on the year to 664,000 tonnes during the first half of the company’s 2016/2017 fiscal year. In January-March period alone, sulfuric acid output rose 7% to 329,000 tonnes. Cathode output at Aurubis’ Bulgarian smelter edged up by an annual 1% in the October-March period but dropped by 2% year-on-year in the January-March period. The Pirdop smelter is located 80 kilometres east of Sofia. Aurubis operates in Germany, Belgium, Bulgaria, Italy, Slovakia, the UK, the US and Finland
Source: Capital (16.05.2017)

Tata Steel offers ?550m to resolve long-running pensions row Tata Steel has taken a step towards helping secure the future of its UK operations – including the Port Talbot works in south Wales – by reaching an outline agreement over the restructuring of its pension scheme. Unions reacted cautiously to the announcement by the Indian-owned company that it would pump ?550m into the British Steel pension scheme – one of the UK’s largest, with liabilities of ?15bn and 130,000 members, including former employees from the days when it was part of a state-owned company. The scheme will also get a 33% stake in Tata’s UK business. The pension scheme has been a stumbling block to Tata Steel merging its European steel operations with German company ThyssenKrupp, and analysts at Berenberg said that joint venture could now be agreed by the end of June. The funding proposal has been announced after intensive talks between Tata, the Pensions Regulator and the Pensions Protection Fund, a government-backed pensions lifeboat that will take over the scheme. Workers paid out through the PPF would take a 10% cut in their benefits, although existing pensioners are not affected. (The Guardian)
Source: Other (17.05.2017)

A New CEO Is Unlikely To Transform U.S. Steel's Fortunes Anytime Soon U.S. Steel announced a change in top management last week, with Mario Longhi stepping down as CEO and COO David Burritt named the next CEO of the company. Though Mr. Longhi stated that he retired in line with his plans for a five-year tenure at the company (which he recently completed), the relatively abrupt nature of the announcement raised some questions about the motivation for the change in top management, particularly as it came shortly after the announcement of the company’s disappointing performance in Q1 2017. U.S. Steel disappointed investors with an underwhelming Q1 earnings release, reporting a net loss amid favorable business conditions, in stark contrast to other leading U.S. steelmakers which reported strong earnings results. The company’s stock price has taken a beating since the earnings release on April 26. (Forbes)
Source: Other (18.05.2017)

MMK takes energy efficient initiatives to the next level OJSC Magnitogorsk Iron and Steel Works (MMK) has taken its energy efficiency improvement initiatives to a new level. One of the world's largest steel producers and a leading Russian metals company, MMK has announced that expenditure on low-cost energy efficiency projects with timely returns – otherwise known as 'baby capex' – grew four-fold in 2016 compared to 2015. Baby-capex on energy efficiency improvements increased from RUB 300 mln ($5.2 million) in 2015 to RUB1.2 bln ($33 million) last year. Overall investment in similar projects for 2017 is estimated at RUB 1.5 bln. Energy efficiency initiatives include motivating employees to suggest ideas that can drive innovation at the company, and concluding energy service contracts. In 2016, MMK considered 390 energy-saving ideas from employees, which formed the basis for the implementation of 138 projects. Last year, MMK adopted an electronic Energy Management platform which enables employees to submit innovative ideas electronically. (Steel Times International)
Source: Other (19.05.2017)

Chinese steel industry policies to boost iron-ore demand – Rio Tinto CEO Rio Tinto CEO Jean-Sebastien Jacques is confident China will continue to drive demand for mining products and iron-ore in particular, despite the introduction of new policies that will make environmental permits for steel mills harder to obtain and less capacity. The country plans to eliminate 100-million to 150-million tonnes of steel capacity to reduce the number of polluting steel furnaces and become more consumption-focused. Jacques believes the new policies will have a positive impact on China and the global mining industry in the medium to long term. “The Chinese government is taking real action around pollution and the environment. We think this is the right thing to do and will have a positive impact on industry,” Jacques noted in a copy of a speech delivered at the Bank of America Merrill Lynch – 2017 Global Metals & Mining Conference in Barcelona, Spain. He added that the restructuring of the steel industry in China did not necessarily mean a reduction in output, noting that it could, in fact, increase demand for higher-grade iron-ore, as older, more polluting blast furnaces are taken off line. (Mining Weekly)
Source: Other (19.05.2017)

South Africa to create R 1.5 bln fund for steel industry South African Economic Development Minister Ebrahim Patel is to announce the establishment of a R1.5bn steel industry competitiveness fund in his budget vote speech in the National Assembly on Thursday afternoon. He told journalists about the announcement at a media briefing ahead of his speech. The size of the fund — which will be predominantly financed by the Industrial Development Corporation (IDC) — is the same as the amount of the fine paid by ArcelorMittal last year to the national fiscus‚ though the state will make only a R 95 mln grant towards it. The fund — called the Downstream Steel Industry Competitiveness Fund — is one of several initiatives taken by the government to protect the steel industry. The IDC will create and administer the fund‚ which will be active from June 1. It will be used to offer an interest rate subsidy to normal IDC pricing. Pricing of the IDC loans will be at a discount of 1.5% for large and medium companies‚ and 2% for very small and small companies. The term of the loans will be five years. The fund will mainly target very small‚ small and medium-sized enterprises. (eNews Channel Africa)
Source: Other (26.05.2017)

US steel industry says cheap imports threaten national security The US steel industry is pushing the Trump administration to take a sweeping view of what constitutes national security, as it seeks a crackdown on imports from China, South Korea and other countries. Donald Trump last month ordered a special investigation into the impact on US national security of steel imports under a 1962 law that would allow him to impose far broader tariffs and other restrictions on imports of foreign steel, in what would be the US president’s most significant act of protectionism so far. At a hearing in Washington on Wednesday, industry executives argued that illegal dumping of below-cost steel threatened their ability to supply everything from armour plating and other specialty metals used by the military, to the steel used in electrical transformers and rebar vital to construction. And they called for the investigation to take a broader view of national security, arguing that without a healthy steel industry the US would quickly lose its ability to produce products that were important to things like energy security and infrastructure. (FT)
Source: Other (26.05.2017)

China’s appetite for steel is not over yet Cynics in Asia might say that the intensity of opinions on China is inversely proportional to the proximity of the pundit. Everyone is a China expert these days. A case in point is iron ore. Given the country’s rapacious appetite for this key input for steel making, commodity analysts carefully monitor the movements of the rusty red metal ore. From afar there are some reasons for concern. China’s real estate market has had another boom period of soaring prices, which has raised concerns just when another round of government stimulus may have peaked. And note that base metal prices have gone all floppy since January. This suggests traders anticipate a downturn in the Chinese economy ahead. Domestic steel prices are off a sixth from December’s peak. Key input iron ore has had it worse, down a quarter. But that bearishness looks premature. True, iron ore inventories at Chinese ports are high. These have doubled over the past year alone. (FT)
Source: Other (26.05.2017)

Odisha’s biggest integrated steel plant commissioned Odisha’s biggest integrated steel plant, owned by JSPL, was made operational on Saturday with the commissioning of the country’s largest blast furnace. Inaugurating the state of the art six mtpa steel plant of JSPL, Odisha Chief Minister Naveen Patnaik said it would provide direct employment to around 30,000 people and indirect jobs to many others. Mr. Patnaik said “as India looks to reach steel manufacturing capacity of 300 million tonnes by 2030, I am proud to note that more than 20 per cent of the country’s steel shall continue to be produced from our state.” Stating that the state government is committed to provide all support to the steel industry, he said “we have added more than 16 mtpa steel making capacity in the state since 2005.” He said the state government was creating an industrial eco-system for enhanced value addition in Odisha. JSPL Chairman Naveen Jindal said the plant was set up at an investment of about Rs 33,000 crore and it would enable the company to overcome its loss in the aftermath of the coal block cancellation. (The Hindu)
Source: Other (29.05.2017)

European steel industry CEOs raise alarm about Emissions Trading System reform CEOs representing the European steel industry have co-signed a letter addressed to the governments of all EU member states calling on political leaders to 'help preserve a sustainable and globally competitive European steel industry'. 'In Europe we must be able to produce the innovative steels that underpin modern society – and that help reduce CO2 emissions,' the CEOs stated in the letter. Speaking after the signing of the joint letter Axel Eggert, director general of the European Steel Association (EUROFER) – which represents 100% of steel production in the EU – commented that the European steel industry is one of the most innovative in the world. "Our CO2 mitigation technologies are world beating," he said, explaining how the EU has a large and open economy and that if the post-2020 reform of the EU’s Emissions Trading System (EU ETS) creates costs for even Europe’s best performing steel plants, the industry will find itself 'uncompetitive in the fierce global marketplace for steel.' The letter highlighted the specific costs of EU ETS reform as it exists today. (Steel Times International)
Source: Other (31.05.2017)

Steel Expansion Plan Needs More Ferrosilicon On average, 3 to 5 kilograms of ferrosilicon are required to produce a ton of steel. And Iran is aiming to become the world’s sixth largest steelmaker by boosting output capacity to 55 million tons by 2025. The expansion is part of the country’s so-called 20-Year Vision Plan (2005-25). The industry is fairly new to Iran, as it was first established in the early 90s. Currently, three large-scale plants produce the alloy in Iran. Before that, Iranian steelmakers imported nearly all their 38,000-ton demand for ferrosilicon. As an alloy of iron, ferrosilicon is used as a source of silicon to reduce metals from their oxides and to deoxidize steel and other ferrous alloys. This prevents the loss of carbon from the molten steel. The alloy is also used in the manufacture of silicon, corrosion-resistant and high-temperature resistant ferrous silicon alloys, and silicon steel for electromotors and transformer cores. In the manufacture of cast iron, ferrosilicon is used for inoculation of iron to accelerate graphitization. (EghtesadOnline)
Source: Other (01.06.2017)

JSW steel raises bid for Italy's troubled Ilva steel plant A consortium led by India's JSW Steel raised its bid for Italy's troubled Ilva steel plant, a statement said, in a challenge to a group that was declared the winner of the tender process last month, but whose offer faces labour union opposition. JSW, leading a consortium called AcciaItalia, said it would put up 1.85 billion euros, which is broadly in line with the winning bid, and added it would "immediately" hire 9,800 employees. It had originally offered about 1.2 billion euros. "The decision (to make a counter offer) is in the interest of Ilva, of its employees, of the supply chain, the territory of the factory and the national machine industry," the statement said. The Industry Ministry said that it could not accept a counter offer, according to procedure, if the only thing changed was the purchase price. The government has been vetting the winning bid and is supposed to decide by Monday whether to officially endorse it. (Reuters)
Source: Reuters (05.06.2017)

The hard-to-believe steel shortage that’s unfolding in China The world’s top steelmaker may have a shortage of steel. China has a lack of rebar, according to iron ore miner Fortescue Metals Group Ltd, which says a shortfall of the key product helps to explain a divergence between the price of the commodity it digs up with the alloy it’s made into. There’s a shortage of rebar, Fortescue’s chief executive officer (CEO) Nev Power said, citing closures in China of some steel producers, especially operators of induction furnaces. Rebar, or reinforcement bar, is a basic item used to reinforce concrete. China makes half of the world’s steel, and in recent years it’s been more associated with excess production, soaring steel exports, and sinking prices. That pain has spurred the government—egged on by Group of Seven policy makers—to press on with shutdowns of outdated plants, promote consolidation and clean the air that’s polluted by smokestacks. Over the past year, the closure of induction furnaces, which use electricity, has been a focus. “Induction furnaces typically make rebar and as those furnaces are closed down, it’s created a shortage of rebar and the prices have gone up,” Power told Bloomberg Television. “The margins that are being made in rebar at the moment we don’t believe are long-term and as new production comes in, we’ll see those margins comes back to normal.” (Live Mint)
Source: Other (07.06.2017)

ArcelorMittal wins race to buy Italian steel business Ilva A group led by ArcelorMittal has won the race to buy Ilva, the Italian owner of Europe’s biggest steel plant that was nationalised after an alleged environmental disaster. Carlo Calenda, Italy’s economic development minister, signed a decree on Monday approving the ˆ1.8bn offer, led by the world’s largest steelmaker, in a move that will deliver the century-old industrial concern back into private ownership. Ilva includes the Taranto steelworks in southern Italy, the continent’s largest by output capacity, which was accused of toxic emissions linked to high cancer rates in the area, as well as another plant in Genoa among other facilities. The sale by the Italian government is aimed at ending a saga that has dragged on for years in which the debt-laden business fell into insolvency, putting 14,000 jobs in jeopardy. It also represents a step toward the long-awaited consolidation of Europe’s steel industry, which has struggled with overcapacity and weaker profitability since the global financial crisis. (FT)
Source: Other (08.06.2017)

Trump's Antidumping Promise Ignites World-Beating Steel Rally AK Steel Holding Corp. and United States Steel Corp. paced gains by U.S. producers of the metal amid growing expectation that President Donald Trump is about to step up measures to block cheap imports. On Wednesday, President Donald Trump said his administration will take measures “very soon” to stop foreign firms from selling steel in the U.S. at artificially low prices. A day later, his Commerce Secretary Wilbur Ross said that if an investigation finds imports represent a security risk, recommendations could include higher tariffs, quotas or a quota-tariff hybrid for “particular products from particular countries.” The administration is looking into whether an influx of foreign steel and aluminum is damaging U.S. manufacturers severely enough to threaten national security. The Department of Commerce may release results sooner than expected and possibly before the end of this week, KeyBanc analyst Philip Gibbs wrote in a note to clients, citing trade contacts. The intent of such policies is widely seen as addressing excess steel capacity from China. However, it has raised concern from other American trade partners, including Canada which exports aluminum to the U.S. Chicago-based Century Aluminum Co. surged 9.3 percent. (Bloomberg)
Source: Other (09.06.2017)

India on track to become top global steel producer India as a steel bright spot is highly encouraging and is on track to become a top global producer, says an industry body. According to the latest report from BMI Research, demand from construction, automotive and infrastructure industries continues to accelerate. The report has put down the sector's success to the government's push to raise capacity in order to meet demand from construction, automotive and infra sectors, said the Steel Users Federation of India (SUFI) in a statement today. SUFI President Nikunj Turakhia said that with the introduction new steel and anti-dumping policies, India is on the path to become one of the top steel producers. The report highlighted that Indian steel giant such as Steel Authority of India Ltd (SAIL) and Tata Steel as the major drivers of such growth. India's steel output would grow to 128.6 mt by 2021 from 88.4 million tonnes (mt) in 2017 and the country's share of global steel production will accelerate to 7.7 per cent in 2021 from 5.4 per cent in 2017. (Economic Times)
Source: Other (12.06.2017)

Plovdiv's metal company Hus bought Polymeri Plovdiv-based Hus bought the assets of the bankrupt Polymeri plant, which has not been operational since 2010. The company paid BGN 14.5 million for the purchase. The price includes the land, the buildings and the equipment. Hus did not give any further information on their plans for the new site. A few years ago, however, the company, which until then was mainly engaged in metal trading, made a pipe manufacturing plant in Lom and announced it will focus its activities on production. That's why the expectations are for a new venture on the Devnya site and local authorities even talk about hundreds of new job openings. Other companies, that operate in Devnya and are completely modernized, are Solvay Sodi, Agropolychim and Devnya cement. Hus is a family company founded in 1990 in Plovdiv. Its main activity is trade in metals, although at its base in Plovdiv it also produces different metal products such as profiles, welded construction nets, etc. In recent years, its sales have grown, with the company reporting revenue of BGN 305.5 million (1.4% growth) in 2016. Its profit increased almost three and a half times to BGN 27.2 million.
Source: Capital (13.06.2017)

BP highlights ‘decisive’ shift away from coal power The world has made a “decisive” shift away from coal and not even Donald Trump will be able to save it. That was the message from BP, the UK-based oil group, as it published energy data on Tuesday showing that global coal production plunged by 6.2 per cent last year, the largest annual fall on record. Global coal consumption also dropped as the US, China and especially the UK cut their use of the dirtiest fossil fuel. “The fortunes of coal appear to have taken a decisive break from the past,” said Spencer Dale, BP’s chief economist, explaining its decline was due to a number of “structural, long-term factors”. These include increasingly competitive renewables, which BP’s figures show were again the fastest-growing energy source in 2016, as well as mounting government and societal pressure to shift to cleaner energy. The rising availability of natural gas is also a problem for coal, not least in the US where Mr Trump has made plain his ambition to revive use of the fossil fuel since taking office in January. (FT)
Source: Other (14.06.2017)

Steel imports tariff of 31% suggested across Gulf Arabian Gulf governments are proposing slapping a 31 per cent safeguard tariff on some steel imports to help protect an industry battered by cheap products, particularly from China. According to a filing with the World Trade Organization published yesterday, the proposal from the GCC includes introducing the tariffs on flat-rolled products of iron or non-alloy steel for a three-year period, with the rate falling to 28 per cent in the second year and 25 per cent in third year. "The date of introduction of the measure will be determined in the TSAIP (GCC-Bureau of Technical Secretariat for Anti-Injurious Practices in International Trade) Official Gazette which will be published once the Ministerial Committee approves the imposition of the measure," the filing said. "GCC-TSAIP found that there is sufficient evidence to the existence of the causal link between serious injury caused to the GCC industry and the increase of imports of the product under investigation." Between 2012 and 2015, imported volumes of the products referred to above into the Gulf region more than doubled from 193,552 tonnes to 405,809 tonnes, the filing said. (The National)
Source: Other (16.06.2017)

Trump faces his biggest trade decision yet The White House is on the cusp of a major decision about whether to impose new restrictions on steel imports, a choice that has divided President Trump's administration while sparking global fears about a burgeoning trade war. The Commerce Department has for months been evaluating whether steel imports pose a threat to national security, and it is expected within days to present Trump with its finding and a recommendation, which Trump could quickly adopt or decide to take a different course. Based on its decision, the White House could impose new steel tariffs, import quotas or a combination of the two, said senior administration officials speaking on the condition of anonymity to discuss internal divisions. The move could provide relief for a domestic steel industry that says it badly needs it, but it could also raise steel costs at every step of the supply chain -- increasing expenses on consumers and on many of the manufacturing industries Trump promised to protect. Additionally, the move has the potential to upset some of the country's closest international allies, and it could spark a set of retaliatory trade moves against U.S. companies trying to sell their products abroad. Restrictions on steel imports would be Trump's strongest move yet to fulfill his campaign promise to radically alter U.S. trade policy, but there has been a big divide within the Trump administration over whether to go forward with the move. (The Washington Post)
Source: Other (20.06.2017)

World steel output jumps to 143 million tonnes in May World crude steel output in May increased marginally by 2% to 143 million tonnes over the same month last year. “World crude steel production... was 143.3 million tonnes (mt) in May 2017, a 2% increase compared to May 2016,” said the World Steel Association (worldsteel). China’s crude steel output was 72.3 mt, an increase of 1.8% year on year, it said. Japan produced 9 mt crude steel, up 0.1%. In the EU bloc, Germany produced 3.8 mt of crude steel, registering a decline of 1.4% from a year earlier. “The US produced 7 mt of crude steel in May... an increase of 0.2 % compared to May 2016. Brazil’s crude steel production... was 2.9 mt, growing by 13.2%,” the association said. The crude steel capacity utilisation ratio of 67 countries in May stood at 71.8%, 0.5 percentage points higher than a year ago. Compared to April, it is 1.8 percentage points down. The World Steel Association is one of the largest industry bodies in the world. Its members represent approximately 85% of the world’s steel production, including over 160 steel producers. (PTI)
Source: Other (21.06.2017)

EU prepares to strike back as Trump’s steel war hits bloc ‘very hard’ US President Donald Trump ordered an investigation into curbing steel imports amid “national security” fears in April. Washington is expected to decide whether to impose tariffs this week. The investigation has mainly been aimed at cheap imports from China but has sparked concern from European steel exporters who worry they will be targeted by the US crackdown. The EU’s trade commissioner Cecilia Malmstrom says Brussels “will need to respond” if Mr Trump decides to impose tariffs on steel from the EU, China and other countries. She told Politico: “We should be very, very clear …. [that] this is hitting the European Union very, very hard.” Ms Malmstrom said the EU will have to analyse Washington’s decision before deciding what action to take. She said: “We will have to respond in different means.” The trade commissioner said the EU shares Mr Trump’s concerns regarding overcapacity in China. (express.co.uk)
Source: Other (22.06.2017)

Tata Steel could merge some of its subsidiaries Tata Steel may merge some of its subsidiaries in a review of its assets portfolio even as India’s oldest maker of the alloy looks at brownfield expansion in Odisha, penciling in a demand revival. "Yes, if it makes sense...in the past subsidiaries have become divisions of Tata Steel. ...Like, the Tube company became the tube division. These are all possibilities," TV Narendran, managing director at Tata Steel India and South-East Asia, told ET in an exclusive interview. He was referring to the possibility of merging the units. Tata Steel has 22 subsidiary companies, including listed companies such as Tata Sponge and Tata Metaliks. About half of these were loss making, according to the fiscal 2016 results. The company, which once owned the biggest steel plant in the British Empire, currently is in the process of closing down Tayo Rolls, a loss-making business. It has earlier exited noncore operations, such as the Dhamra Port and its Sri Lankan subsidiary. However, its recent bid to merge Metaliks with itself was not successful due to delays in regulatory approvals. (Economic Times)
Source: Other (26.06.2017)

Brussels ‘considering NUCLEAR option’ of tariffs if Trump sparks steel trade war US President Trump is currently waiting on the imminent outcome of an investigation examining whether America’s steel producers are under threat because of intense foreign competition. Titled ‘Section 232’, the probe could enable the US to implement huge trade tariffs on steel made from foreign producers in a bid to protect the US’s national security. President Trump fears US steel companies will not be able to compete with their foreign competitors, which will in turn harm America’s industrial base. In retaliation of Mr Trump's potential move, the European Commission is allegedly considering a series of “safeguarding measures” to prevent EU businesses from collapsing. EU Trade Commissioner Cecilia Malmstroem said the bloc was "making preparations" to retaliate in the event the US introduces new tariffs. Ms Malmstroem added the EU “would be unjustifiably hit” by the tariffs in a bid to justify the bloc’s preparations. Last week, US Commerce Secretary Wilbur Ross warned President Trump is planning to take “bold action” to address the national-security risks imposed by steel imports. (express.co.uk)
Source: Other (28.06.2017)

Iron ore and steel: A sigh of relief The recent months have been tough for iron ore. Prices dropped almost 40 per cent from the highs reached earlier this year, reflecting renewed fears about a slowdown in demand from China’s steel mills. Although seasonal, cyclical as well as structural factors point to a slowdown in demand due to falling steel consumption, these fears were overdone. There was a sigh of relief in the market yesterday and prices gained more than 5 per cent following statements by Premier Li Keqiang that China will be able to meet its growth target this year while identifying, controlling and resolving financial risks. Despite this commitment to support growth, we still believe that the outlook for steel and iron ore is not very promising. Steel production has reached the seasonal peak, which should lead to falling production over the coming months and weigh on the steel mills’ demand for iron ore. With low-cost supplies from Australia and Brazil growing at the same time, the iron ore market should remain oversupplied as also indicated by rapidly rising Chinese port inventories. Further to that, we believe steel consumption from property construction should soften over the coming months, as various measures to cool the property market should result in reduced activity. (CPI Financial)
Source: Other (29.06.2017)

Essar Steel insolvency proceedings: SBI, Standard Chartered differ on choice of IRP Essar Steel’s insolvency proceedings could turn into a test case for India’s bankruptcy framework with lenders differing on the choice of the so-called interim resolution professional (IRP), the entity that will oversee the exercise. One of these is an unsecured lender and has apparently broken with the other banks and opted to pursue its case separately. State Bank of India, the lead bank in the consortium of lenders, will file insolvency resolution proceedings against Essar Steel in Ahmedabad’s National Company Law Tribunal (NCLT) bench. Standard Chartered Bank, the unsecured lender, did so a few days ago. Essar Steel, which owes banks Rs 44,000 crore, is among the 12 companies identified by the Reserve Bank of India for speedy debt resolution through the Insolvency and Bankruptcy Code (IBC). The two banks that have differing claims over the assets of the company are testing the waters on how the NCLT reacts in such instances. (Economic Times)
Source: Other (30.06.2017)

Thyssenkrupp wants less than 50 percent of Tata steel JV German industrial group Thyssenkrupp aims to hold less than half of a steel joint venture it wants to set up with Tata Steel so it can deconsolidate the business from its balance sheet. Thyssenkrupp and Tata have been in discussions since last year to combine their European operations in a joint venture to remove overcapacity from the market and cut costs, and had so far said to be planning a 50-50 venture. Negotiations for a deal have been hampered by Britain's vote to leave the European Union and concern over Tata's pension deficit in Britain. A source close to Thyssenkrupp had said a deal in May to separate Tata's 15 billion pound UK pension scheme still left many questions unanswered. Thyssenkrupp's operations are mainly in Germany, while Tata's are in Britain and the Netherlands. Chief Executive Heinrich Hiesinger and Natarajan Chandrasekaran, chairman of Tata group's holding company Tata Sons, are to hold talks this month. (Reuters)
Source: Reuters (03.07.2017)

Getting scrappy: China iron ore demand may falter as steel recycling grows China's supply of steel scrap is surging as aged buildings, bridges and cars produced over decades of rapid economic growth are knocked down, dismantled or crushed. That should push Chinese steelmakers to use more of the material in coming years, potentially sapping demand for steel ingredient iron ore from the world's biggest metals consumer. Faltering appetite for iron ore could hit a critical lifeline for international mining giants which have banked on China continuing to suck up hundreds of millions of tons of the most widely traded bulk commodity. "In the medium to long term, scrap is the real threat to iron ore, for sure," said Daniel Meng, an analyst at brokerage CLSA in Hong Kong. "We believe by 2020, replacement would become faster and the risk on iron ore from scrap would become more serious." China currently only produces around 11 percent of its steel from scrap, compared to over 70 percent in the United States, suggesting it may have plenty of room to grow in recycling the material. The recent abundance of scrap in China followed Beijing's decision to shut mills churning out low-quality steel from induction furnaces - typically big users of scrap - as part of its drive against pollution and a glut in steel supply. (Reuters)
Source: Reuters (05.07.2017)

Steel companies stay away from coal block auctions India’s fifth round of coal block auctions that was set to start next week is in doldrums, having received tepid interest from steel makers. Bad financial position of most steel companies is being seen as the reason behind the lukewarm response. Some of the coal blocks offered have not received even the minimum number of three bids required for reverse e-auction, sources said. A senior coal ministry official said the fifth tranche of mine auctions was carried at the steel ministry’s insistence. The coal ministry had last year annulled the fourth round of coal mine auctions due to lack of adequate number of bidders. The coal ministry had in April this year offered six blocks — five in Jharkhand and one in Madhya Pradesh — for production of iron and steel. The blocks include Rohne OCP with estimated reserves of 8 million tonnes and Rabodih with 2.5 million tonnes of coal. Sources said in all 4-5 firms including JSW Steel and Tata Steel have evinced interest in the fifth round of coal auctions. Interest is discouraging even for lucrative mines like Rohne, Rabodih and Urtan North coal block in Madhya Pradesh. (Economic Times)
Source: Other (06.07.2017)

Steel prices gain in June, but supply clouds outlook China’s iron ore prices gained since late June boosted by supply-side reform and a fall in low-quality steel production, but analysts do not see larger gains soon as supply remains high after a surge of imports. The Iron Ore Price Index reached 228.79 points at the end of June, 19.32 points higher from a month earlier, the China Iron and Steel Industry Association said yesterday. Prices bottomed on June 13 at US$54 ton before rebounding to above US$60 a ton since June 27, said Wang Guoqing, research director at domestic steel consultancy lgmi.com. The rebound followed a cut of 42.4 million tons in capacity over the first five months, which accounts for 84.8 percent of the target set for the year, the National Development and Reform Commission said. “China has cracked down about 120 million tons of ‘ditiaogang’ — low quality steel made from scrap metal — by closing more than 600 steel companies over the first half this year after a full-scale overhaul,” the commission said, in line with plans to phase out ditiaogang by end-June. (Shanghai Daily)
Source: Other (07.07.2017)

Assarel Medet - the white swallow of Bulgaria During the transition years in Bulgaria, we have seen all. Hundreds of companies went bankrupt, a large part of the regions were impoverished, thousands of people did not received their due wages, hundreds of thousands of the Bulgarians decided to seek livelihood and live better abroad, the villages were depopulated. But fortunately there are good examples. White swallows of the hope that things can happen otherwise. That you can live well in Bulgaria, that work can be earnestly rewarded, that you can be calm and sure not only for your future but also for your children. An example of such hope is the municipality of Panagurishte, which benefits from the big company Assarel Medet on its territory. Do not be fooled that the presence of a large investor guarantees good conditions in the municipality. In Bulgaria it is often the case that capital does not reach people so as to make their lives better. Panagyuris, however, are lucky. Because social responsibility is one of the three pillars of the current and future development of Asarel Medet - the structuring company in the Pazardzhik region, says Alexander Chobanov, director of Human Resource in the company. The other two pillars are economic and environmental responsibility. Here's what the figures and economic analyzes of the regions show. Developed mining industry ensures lower unemployment and higher wages, is the main conclusion of the study Assessment of the Macroeconomic Importance of the Mineral and Raw Materials Industry in Bulgaria by the Bauerzaks Foundation and the economists in Industry Watch at the request of the Bulgarian Chamber of Mining and Geology. According to it, the unemployment rate in Panagyurishte is 3.4% lower than the Pazardzhik region and 7.3% as to the selected reference region - Septemvri Municipality. The average salary of a worker in the mining industry in Panagyurishte is 4 times higher than the average for the Septemvri municipality chosen as a comparison, and 4.1% higher than in the region. 1.3% of the employed in the country are in the mining industry, which makes 3% of the value added and they receive 3% of the salaries paid, said Lachezar Bogdanov from Industry Watch. Panagyurishte Municipality has a good level of economic development, and its many indicators outpace not only Pazardzhik but also the average of the country, according to the conclusion of the Institute of Market Economics report. According to it, the wages in the municipality exceeded the average for the district and the country significantly, reaching BGN 1063 gross, at BGN 667 for Pazardzhik and BGN 878 for the country (data for 2015). In the period 2008-2015, growth was 58%. According to IME, the relative share of the population in Panagyurishte, which lives below the poverty line, is 18.2%, with an average for the country of 21.8% and an average for Pazardzhik region of 50.2%. The investment activity in Panagyurishte Municipality also significantly exceeds the average for the region and the country. Investments in tangible fixed assets are over BGN 4,000 per person in 2015, which is nearly 3 times more than the investment in the area. The absorption of European funds reaches BGN 72.1 million, which, according to the local population, is also almost 3 times higher than the average for the country. And more data from the IME report - in the last year people leaving the municipality are decreasing and the number of people living in it is increasing. Almost the entire population is health-insured. In the last two years, infant mortality is zero. Boyan Rashev, Managing Partner of Denkstat-Bulgaria, presented a report that compares several municipalities that have developed in the past thanks to their mining industry but today they have taken different paths. The difference between the two types is also visible in the quality of the environment - the successful mining industry is constantly investing in reducing its environmental impact and providing sufficient eco-systems at the municipal level. Panagyurishte is a particularly successful example, says Rashev. First, Asarel Medet invests in the development of other economic sectors - tourism, sports, healthcare that provide alternative jobs. Secondly, other productions are developing in the region. According to BIA, Asarel Medet is the most preferred employer in the municipality of Panagurishte, where there are other serious enterprises such as Opticoelectron, for example. Over 95% of the mining company's employees are from the municipality. Because of the high salaries, Asarel Medet does not complain about lack of staff. Ancestral miners are a great part, and children are proud of their parents' profession. A special gesture of attention is the gift that every employee with a baby receives a gold medalion from the company. Every year for Miner's Day - August 18, Asarel Medet nominates the best in the profession. Business traditions are for the company to award people with 25, 30, 35 and 40 years of continuous work experience in the company. This year, however, there will be no celebration in memory of Prof. Lachezar Tsotsorkov, who died on May 16, 2017. The company also invests in dual training. Since 2012, free textbooks have been distributed to 400 students, says Alexander Chobanov. The Vocational High School gives a chance to the children from the home for children deprived of parental care in Panagyurishte, who have a chance to get to Asarel Medet immediately. The four kindergartens compete for the attention of parents who can choose the best conditions for their kids. It is noteworthy that the city is full of young people who are definitely not bored. Children have the opportunity to swim in the pools of Hotel Kamengrad, which is the former Miner's House. In the modern sports hall Arena Asarel there are schools of rhythmic gymnastics, aikido and a bunch of other sports. And in August the world championship of table tennis is held in the city. May is the festival of fireworks. Bulgarian and world stars visit often. The municipality gives 1% of its BGN 14 millionth budget for the development of mass sport, as much is added by Asarel Medet, said the chairman of the Panagyurishte Municipal Council Hristo Kaloyanov. Another unique benefit for the town is the Uni Hospital, which was opened last year. It saw invested over BGN 95 million as the main investor is Asarel Medet. It has the most up-to-date equipment available on the market. The best companies that produce in the field of healthcare were sought and the best and the most modern of the appliances were bought, doctors say. For the past year no patient paid for treatment, although the conclusion of a contract with the Health Insurance Fund was delayed for almost a year. Instead by the patients, the funding was taken over by Asarel Medet, says Dr. Diana Dimitrova.
Source: Standart (10.07.2017)

U.S. Squeezes Steel Concessions From G-20 Amid Tariff Threat Group of 20 leaders agreed to address growing overcapacity and rock-bottom prices in global steel markets, bowing to pressure from the Trump administration after it threatened to impose punitive tariffs on its allies. In talks that stretched into the early hours of Saturday, U.S. officials managed to get language inserted into the communique that sets deadlines for G-20 members to address excess steel production, according to a leaked copy of the text. Countries like China will also have to be more transparent about how they subsidize domestic producers. In return, the U.S. agreed to boilerplate language reiterating the G-20’s commitment to fight protectionism. The threat of a trade war on steel hung over this week’s G-20 summit in Hamburg and those fears were compounded Friday when German Chancellor Angela Merkel said negotiations were proving to be difficult. That said, the statement still preserves Trump’s ability to impose harsh new steel tariffs if he determines they are warranted. (Bloomberg)
Source: Other (10.07.2017)

Asarel - Medet plans to invest BGN 80 million this year Asarel - Medet invested nearly BGN 122 mln last year. The company operating the copper field in the Panagurishte region is working on seven long-term sustainable development programs, with the bulk of the 2016 funds devoted to technology modernization projects. This has helped the enterprise reduce the cost of production and thus partly offset the depreciation of metals. At the same time, productivity has increased. For this year, the company plans to invest more than BGN 80 mln. A little over BGN 95 mln have been used for projects related to the research and introduction of technologies and innovations to increase quality and productivity and reduce the production cost of production. To increase energy efficiency, the company has allocated BGN 10.7 million, and BGN 3.5 million have been invested in environmental measures. The company's other investment programs are related to the development of the mineral-raw material base, labor safety, human capital development and corporate development, the company's report for 2016 shows. Among the larger projects completed last year are the new round-the-line ore extraction line, the modernization in the enrichment plant and the purchase of transport equipment. Thus, the total amount of the investments since the privatization of the company in 1999 exceeds BGN 1 billion. The main projects under this year's work are those for the long-term development of the mine and the enrichment factory and the planned investment is BGN 80 million. Last year, the company extracted 13.2 million tons of copper ores, down 7% from 2015. This reduces the production of the concentrate to 146.7 thousand tons. "We have cut production due to low metal prices," said Alexander Chobanov, Director of Human Resources. According to him, in case of slump in prices on international exchanges, the reduction of the production price is very important. "In 2016, the net cost of payable ton of metal is lower than in 2015 and is the lowest since 2013," he said. At the same time, natural productivity, recorded as mined metal per employee, increased by 5.4%. Asarel - Medet employs 1300 people, another 400 are employed in subsidiaries and joint ventures. However, the company produced nearly 45% more high purity copper (99.99%) in an extraction and electrolysis plant installed a few years ago, which treats waste water and produces an exchange-traded product.
Source: Capital (11.07.2017)

Aurubis Bulgaria voted a gross dividend of BGN 196.5 mln Aurubis Bulgaria AD voted a gross dividend of BGN 196.5 million or BGN 9.45 per share àò the General Meeting. Only two shareholders - Cumerio Austria GmbH with a share of 99.86% and 20,761,210 shares and the individual Dimitar Spiridonov with 202 shares were present. The dividend concerns a total of 2,184 shareholders, of which 11 legal entities and 2 173 individuals. The dividend paid for 2015 was BGN 195.6 million. In 2014, a gross dividend of BGN 117.3 million was voted on the basis of the profit for 2013. In total, last 4 years was paid BGN 922 million or almost BGN 44 per share. If this money is not sought by the shareholders within 5 years, they will become the property of Aurubis Bulgaria AD. Sales revenue in 2016 was BGN 3.21 billion, compared to BGN 4.18 billion in 2015 or a decrease of 23.2%. Payroll and social security costs are BGN 38.6 million for 2016 and BGN 36.7 million for 2015. The net profit for 2016 is BGN 196.7 million compared to BGN 219 million in 2015. In 2016, Aurubis Bulgaria AD produced 296,804 tons of copper anodes and 216,428 tons of cathode copper as well as 1,074,467 tons of sulfuric acid from the dissolved copper concentrates and scrap. About 30% of the concentrates needed for production were delivered from Bulgarian mines located near Aurubis Bulgaria AD (mines of Dundee Precious Metals Chelopech, Elatzite-Med and Asarel-Medet). Aurubis Bulgaria is the largest copper-based scrap metal processor in Southeast Europe. It processes more than 1.2 million tons of copper concentrate originating from North and South America, the Black Sea region and Bulgaria. The copper concentrates are delivered by ships at Port of Burgas and are transported by rail to the production base of the company in Pirdop. Exports are mainly for other Aurubis companies in Belgium (Olten), Germany (Hamburg and Lunen) and Italy (Avellino) Financial results in 2016 are influenced by the price movement of refined copper. The year began with a sharp spike of the price to USD 4,311 per ton in January, from USD 5,900 per ton on November 11, 2016. The fall in profits, however, was due to the capital repairs carried out in April-June 2016, which resulted in lower production and lower sales.
Source: investor.bg (12.07.2017)

Metals group Liberty House buys two Tata steel mills in UK Liberty House, the privately owned metals group, has completed a hat-trick of transactions this month with the purchase of two Tata Steel mills in north-east England. The facilities in Hartlepool employ 140 people and manufacture heavy-duty pipes for the energy, power and construction industries worldwide. They will slot into an industrial jigsaw that Liberty House has been piecing together over the past two years, as the UK-based group rapidly expands beyond its roots as a commodities trader by snapping up distressed manufacturing businesses. Liberty won an auction for the collapsed Australian mining and steel outfit Arrium this month, days after securing 145 jobs in northern England with the acquisition of struggling steel outfit Caparo Merchant Bar. Sanjeev Gupta, the Indian-born businessman who heads Liberty, said the Hartlepool mills could be “a symbol of a new Britain, integrated with the world economy, exporting a world-class product globally once again”. The addition of the Hartlepool facilities would take Liberty’s UK workforce to around 5,500 people across more than 30 sites. (FT)
Source: Other (12.07.2017)

China steel exports ease in June, aluminium shipments steady China's exports of steel products eased in June from the month before as tight local supply kept material at home, while shipments of aluminium were steady, customs data showed on Thursday. Exports of steel products fell 2.4 percent to 6.81 million tonnes from the previous month, according to Reuters calculations based on the data. China, the world's largest aluminium producer, exported 460 million tonnes of unwrought aluminium and aluminium products in June, in line with the previous month, according to the data. "Tight (steel) supply and strong prices in the domestic market have enticed mills and traders to focus more at home. Foreign traders are less willing to buy steel from China as the price advantage is less obvious," said Wang Yilin, steel analyst at Sinosteel Futures. The numbers come amid a trade dispute with the United States, which says China has flooded international markets with cheap aluminium and steel. In April, Beijing and Washington agreed to a 100-day plan for trade talks in a bid to boost access to each other's markets. (Reuters)
Source: Reuters (13.07.2017)

Scunthorpe steel to be used for Royal Navy fleet - but Sweden gets lion's share of contract More than 11,000 tonnes of steel from Scunthorpe will be used to build the hulls of the Royal Navy’s fleet of eight new Type 26 frigates. But the town’s MP Nic Dakin has expressed disappointment in the Government’s decision to source 65 per cent of the steel for the ?8 billion contract from Sweden. The Ministry of Defence has insisted some grades of plate steel and the combination of thickness, size and flatness specifications needed for the new fleet cannot be sourced entirely in the UK. But Roy Rickhuss, the leader of the Scunthorpe steel industry biggest union Community, said "British steel is some of the best in the world and our Government should be using this project to help British steelworkers. "It’s not good enough for the Government to say that we can’t make the right sort of steel. If we had a proper industrial strategy our steelworks would equipped to meet the challenges.” (Scunthorpe Telegraph)
Source: Other (14.07.2017)

China steel output hits record in June China's steel output rose 5.7 percent in June to a record 73.23 million tonnes, data showed, as mills in the world's top producer ramp up production due to fat profits from rallying prices. The numbers come amid a trade dispute with the United States, which says China has flooded international markets with cheap aluminum and steel. June's total surpassed April's monthly record of 72.78 million tonnes, fuelling worries of a growing glut. In the first half of this year, steel output totaled 419.75 million tonnes, up 4.6 percent from the same period in 2016, data from the National Statistics Bureau showed. Meanwhile, China's aluminum production rose 7.4 percent year-on-year in June to its highest level on records back to 2014. Steel rebar margins were almost 1,000 yuan ($147.77) per tonne in June, enticing mills to increase output, said Bai Jing, analyst at Galaxy Futures. "China's crackdown on low-end steel has left a capacity gap in the market," she said. Stocks of rebar held by Chinese traders hit a six-month low on Friday, at 370.4 million tonnes, data from SteelHome consultants showed. China eliminated around 120 million tonnes of low-end steel capacity in the first six months of this year. (Reuters)
Source: Other (17.07.2017)

Aurubis Bulgaria to distribute 100 mln euro as 2016 dividend Aurubis Bulgaria, a unit of Hamburg-based copper producer Aurubis, has said it will distribute BGN 196.5 million as dividend for 2016. The company’s net profit fell to BGN 196.7 million in 2016, compared to BGN 219 million a year earlier, according to Aurubis Bulgaria's annual financial report filed with the country’s commercial register. Aurubis Bulgaria’s sales revenue fell to BGN 3.2 billion last year from BGN 4.2 billion in 2015. Expenses for materials fell to BGN 2.9 billion in 2016, compared to BGN 3.5 billion the year before.
Source: Capital (18.07.2017)

EU proposes duties on Brazil, Iran, Russia, Ukraine steel The European Union is planning to impose duties of up to 33 percent on hot-rolled steel imports from Brazil, Iran, Russia and Ukraine to counter what it sees as unfairly low prices. The EU has over 40 anti-dumping measures to aid European steel producers, mostly aimed at China. In June, the bloc set duties of up to 35.9 percent on Chinese hot-rolled steel, prompting an angry response from Beijing. Steel is the second biggest industry in the world after oil and gas and the EU's attention has recently shifted as barriers aimed at cheap Chinese imports have an impact. "While far from perfect, this outcome surpasses earlier expectations, will help cut import pressure into the EU and should boost earnings expectations for local steelmakers," investment bank Jefferies said in a note. The European Commission, which oversees EU trade policy, launched an investigation into hot-rolled steel from Brazil, Iran, Russia and Ukraine as well as Serbia in July 2016, following a complaint by European steel association Eurofer. (Reuters)
Source: Reuters (19.07.2017)

JSW prefers Bhushan over other steel assets JSW Group is more keen on buying ailing Bhushan Steel than other stressed steel entities in the country. This was disclosed here by Parth Jindal, the MD of JSW Cement, and son of JSW Group chairman Sajjan Jindal. On the sidelines of the group's cement launch in Kolkata, the Jindal junior said that although he does not look after steel directly, but according to his information, the group would be more keen on Bhushan Steel because of the location of its units. Bhushan units are mostly located in western India. It may be noted that State Bank of India (SBI) has already filed a bankruptcy petition in the National Company Law Tribunal (NCLT) against Bhushan Steel. "We were keen for both Monnet Ispat and Bhushan Steel. But I feel that we are more interested in Bhushan," he added. Bhushan Steel is in default of Rs 44,478 crore to banks, while Essar Steel owes Rs 37,284 crore, Monnet Ispat Rs 12,115 crore and Electrosteel Steels Rs 10,274 crore to their respective lenders. (Times of India)
Source: Other (20.07.2017)

US steel production falls back in June Chinese steel output last month rose 5.7% from the year before to a record 73.2m tonnes, surpassing April's all-time high of 72.8m tonnes. For the first six months Chinese furnaces pumped out 4.2% more steel, to just under half the global total according to the World Steel Association. Global steel production rose 4.5% year on year during the first six months of 2017 to 695m tonnes. Despite contracting in June by 1.7% US steel output still grew 1.3% in H1 2017 after two years of contraction as higher prices encourage the restart of idled plants and the new Big River Steel plant in Arkansas continues to ramp up output. India is set to overtake the Japan as the world's number two steel producer after growing output by 5.3% from January to June to 49.5m tonnes. Japanese steel output fell 4.3% in June and is now flat this year. (mining.com)
Source: Other (21.07.2017)

The loss of Stomana Industry decreased by 74% to BGN 13 mln The loss of Stomana Industry AD - Pernik decreased by 74% yoy to BGN 13.17 mln in 2016, shows the company's report filed in the Commercial Register. The loss for 2015 was BGN 51.2 mln. Sales decreased by 12% yoy to BGN 523.2 mln in 2016. The cost of materials decreases faster and the cost of production as a whole is down 18.5% to BGN 468.9 mln, which helps to reduce the loss. The financial expenses (mainly interest) of the company are BGN 20.83 million in 2016 (compared to BGN 22.2 mln for 2015), i.e. the company reported a profit before the interest expense. Liabilities of Stomana Industry AD are significant - BGN 488.1 mln. Two large long-term loans (with maturities in 2021 and 2023) are presented in the report as short-term (total BGN 262.65 mln) as the company violated the ratios in the loan agreements. On March 15 and March 17, 2017, Stomana Industry AD received a written notice from both creditor banks that they would not consider the breach of the contract terms and would not require early repayment of the loans. The equity is several times lower, or BGN 140 mln at the end of 2016, of which BGN 67 mln share capital (basic), BGN 60.2 mln unallocated profit and BGN 13 mln - other reserves. The owner of 99.9998% of the capital is Viohalco SA, registered in Belgium. A large part of the trade is related to parties, such as Siderom Steel S.A., Sovel S.A., Teprometal AG and Dojran Steel DOO. Steel Industry is the only producer of steel from electric arc furnaces in Bulgaria. The Pernik Company owns 73.09% of the capital of Port Svishtov West AD, which is the sole owner of Svilosa Port Complex. As of December 31, 2016, Stomana Industry AD employs 1032 recruited staff, compared to 1085 average in 2015.
Source: investor.bg (24.07.2017)

China’s steel industry body wants Beijing to get tougher with Trump over possible US import curbs China’s steel industry association, which represents 80 per cent of the country’s steel production, has called on Beijing to get tougher with the administration of US President Donald Trump and to threaten retaliation if Washington moves to curb Chinese steel imports. Li Xinchuang, vice-president of the China Iron and Steel Association, said that China should be bold in protecting the interests of its own businesses and avoid “being led by the US by the nose”. If Washington moves to levy additional tariffs on Chinese steel products or take restrictive measures against imports from China, China can “hit back on restricting [US] imports of automobiles and agricultural products”, Li said. His comments came a day after the first China-US economic dialogue to be held since Donald Trump took power failed to reach an agreement on trade. One reason for the fruitless talks in Washington was that China refused to agree to US demands that it eliminate excess steel capacity. (Reuters)
Source: Reuters (24.07.2017)

ArcelorMittal sees higher steel demand, but fears imports ArcelorMittal, the world's largest steel producer, raised its outlook for global steel demand on Thursday, as it expected the Chinese industry to return to growth, but said cheap imports continued to hurt its business. The group said it expected apparent steel consumption, which takes into account inventory levels, to increase by 2.5 to 3.0 percent globally in 2017 compared to last year, a sharp increase from its previous 0.5 to 1.5 percent estimate. This increase was driven by a recovery in the Chinese market, the company said, which it had previously expected to decline this year. While ArcelorMittal has little direct exposure to China, the world's largest steel producing and consuming country has a large impact on global steel markets. Recent economic data from China, suggested its economy was growing quicker than expected, sent Chinese steel futures to a three-and-a-half year high. For ArcelorMittal as a whole, core profit (EBITDA) rose by 19 percent in the second quarter to $2.11 billion, broadly in line with the $2.14 billion expected in a Reuters poll of nine analysts. (Reuters)
Source: Reuters (27.07.2017)

Thyssenkrupp CEO keen for Tata steel merger deal before end-September Thyssenkrupp's chief executive is pushing for a deal to fold its steel operations into a joint venture with India's Tata Steel as early as September, after two years of talks. The talks are more advanced than previously thought. With earnings from Thyssenkrupp's industrials businesses sound and those at the steel unit weak due to structural overcapacity in the sector, Chief Executive Heinrich Hiesinger is facing pressure from investors to deliver the merger. "The fiscal year will come to an end soon (in September) and Hiesinger wants to have a story for investors. If it would not come to a merger it would be a severe defeat for (him)," a German union source said. Hiesinger has staked his reputation on transforming Thyssenkrupp from a loss-making steelmaker into a diversified industrials group, with steel now contributing just under a quarter of the firm's revenues. His ultimate aim is for Thyssenkrupp to exit the steel business altogether. "He (Hiesinger) has invested too much time for it to now fail," a banking source familiar with the matter said. (Reuters)
Source: Reuters (27.07.2017)

Assarel-Medet produced lavender oil Coppermaker Asarel-Medet produced the first quantities of lavender oil under a project to rehabilitate the oxide mine pits. The plants were planted two years ago and now the first 110 kg were harvested and processed. The whole project is worth over BGN 10 million and it is interesting as for the first time in the world, a similar facility is being restored, while still in operation. The plantations are part of the project for the technical and biological reclamation of the oxide deposit, where rocks from the mine, which contain minimal copper content and can not be enriched in the flotation plant, are piled. Instead, the metal is extracted with solutions and then processed. The technical recultivation goes through several stages, firstly balancing the terrain with stone and gravel. A special geotextile coating (mulching canvas) is placed on top of this, which prevents the plants from being grazed. Then soil is added, prepared with humus and ash, and at the top is laid the geological net that stops the erosion. Biological recultivation includes grassing and afforestation. All these activities are generally performed after the facility has been decommissioned. This is also the specific thing in the Assrel-Medet project, as the oxide deposit is still being used. For biological recultivation, the company decided to experiment with lavender and the plants were planted two years ago on an area of about 1 decare and now for the first time they blossomed. "The output is 110 kg of lavender, which has already been processed," explained Yordan Rabuhchiev, a mining engineer at Asarel-Medet and a project consultant. However, the actual yield of lavender plants will be seen after at least four years, as long as it takes to develop the plants, the company said. The first bottle of lavender oil is exposed in the company's exposition. The Panagyurishte area, where the mine is located, is famous for its lavender plantations. Much of the lavender extracted there is bio-certified.
Source: Capital (28.07.2017)

Nucor CEO says the US is losing a 'trade war' in steel to 'predatory countries like China' As Washington lawmakers wrestle over health care, Nucor CEO John Ferriola sees a much more pressing issue at hand that affects more than just his steel-producing company. "There's no doubt we're in a trade war. We are losing that trade war. It is time to take action to support the American industry and the American people. And beyond just the steel industry, we're talking manufacturing as a whole," Ferriola said. "Steel is the bedrock of manufacturing. Manufacturing is the bedrock of any strong economy." Ferriola said that because foreign competitors are motivated not by profits, but by employment, those countries are effectively trying to "export their unemployment" to the United States steel industry, hurting companies doing business stateside. Moreover, if those competitors' low-cost imports continue to pressure U.S. steel producers that supply materials for everything from tractors to appliances, Ferriola said they would eventually engulf the whole U.S. market. (CNBC)
Source: Other (28.07.2017)

Steel giant on fast track to success This year marks the 70th anniversary of the establishment of the Inner Mongolia autonomous region. Steel giant Baogang Group is on track to expand its thriving business operations through the Belt and Road Initiative. The sprawling State-owned conglomerate is one of the largest steel rail manufacturers in the world with a production capability of 2.1 million metric tons. But now the group plans to increase its exports as part of President Xi Jinping’s initiative, which aims to connect Asia, Africa and Europe to a modern version of the ancient Silk Road. “As the world’s largest steel rail manufacturing base by capacity, Baogang will increase exports to more Asian and European economies related to initiative,” said Liang Zhengwei, chief engineer at Baogang’s rail-making factory. “About 10 out of 25 countries and regions across the world, which have imported our products, are involved in the initiative,” he added from the company’s plant at Baotou in North China’s Inner Mongolia autonomous region. Customers from Vietnam, Malaysia, Indonesia and the Philippines make up just part of Baogang’s overseas order book. (Hellenic Shipping News)
Source: Other (28.07.2017)

DPM's H1 pre-tax profit from Bulgaria's Chelopech mine rises 12.8% Canada's Dundee Precious Metals (DPM) said its Bulgarian gold-copper mine Chelopech recorded adjusted earnings before income taxes of $52.7 million (56.5 million euro) in the first half of 2017, up by 12.8% compared to the same period last year. Chelopech's January-June net revenue added 11% on the year to $95 million, Dundee said in an interim financial report posted on the corporate website. Cost of sales rose to $53.1 million in the period under review from $51.5 million a year earlier. Capital expenditures fell to $4.6 million in the first six months of 2017 from $7 million in the same period of 2016. Ore output increased to 1.13 million tonnes in the period January-June from 1.1 million tonnes in the first half of 2016. Dundee expects to mine 2.0 - 2.25 million tonnes of ore from Chelopech this year, compared to 2.0 million tonnes of ore mined in 2016. DPM said it produced 99,800 ounces of gold from Chelopech in the first half of 2017, up from the 63,000 ounces produced in the like period of 2016. Copper output in the first half amounted to 16.8 million pounds.
Source: Capital (03.08.2017)

Aluminum Leaps Past $2,000 a Ton as China Deepens Capacity Cuts Aluminum cemented its spot as the best commodity this year as prices jumped to over $2,000 a metric ton for the first time since 2014. Prices have rallied as China ramps up efforts to curtail illegal or polluting capacity. China’s Shandong province, the top aluminum producing hub, called for the closure of 3.21 million tons a year of illegal aluminum capacity by end of July, according to a statement on Shandong NDRC website dated July 24. The cuts are deeper than expected, Citigroup Inc. analyst Jack Shang said in an emailed note. “This confirms our thesis that the clampdown on unlicensed capacity will be strictly enforced,” he wrote. “We see more upside risks on aluminum prices in the coming quarters.” The global aluminum market may flip to a significant deficit, according to a report from Wood Mackenzie Ltd. A quarter of capacity in Shandong was unqualified last year, WoodMac said, citing government data. This year’s figure is 3.2 million tons a year, or 3 million tons at current operating rates, and if all that gets shut, it would represent 9 percent of the nation’s total production for 2017, it said. (Bloomberg)
Source: Other (09.08.2017)

China's steel prices are rising and that's worrying Beijing China's steel prices are rising, and the government is getting worried about striking the right balance on the markets. China, the world's largest steel producer, has been working to tackle overcapacity in the sector, as the government seeks to find economic growth outside of heavy industry and manufacturing, The cutbacks also come amid long-time claims by the U.S. and Europe that China was selling its unwanted steel at lower prices on global markets, hurting producers elsewhere. In March, the government announced plans to slash steel capacity by 50 million metric tons this year in efforts to tackle pollution and curb excess supply. Experts say the prospect of limited steel is pushing prices up, and it's got authorities worried about market volatility. China is also the world's top steel consumer, so higher prices translates to better profits for industry, but it also means increased costs for sectors like construction that use much of the alloy. The government is convening meetings this week with regulators and industry executives as prices have surged, Reuters reported, citing a source at the China Iron and Steel Association. (CNBC)
Source: Other (10.08.2017)

The power of steel The Metallurgical Plant is a European leader in the production and marketing of high quality steel products ONE BIG FAMILY SIDENOR GROUP consists of companies that produce, process and trade in steel products. The Group is one of the largest steel producers in the Balkan Peninsula with leading positions in Europe. As part of the international corporate structure of VIOHALCO, STOMANA INDUSTRY AD became one of the European leaders in the production and trade of high quality steel products. COMPANY PROFILE The Group's steel plant started its history on 5 November 1953 as a metallurgical plant "Lenin", after which the name was changed to STOMANA INDUSTRY. In June 2001, SIDENOR GROUP acquired the majority stake in STOMANA AD and assumed the management and overall operation of the company. The transition to the private sector was a turning point in the company's history, which includes a major investment plan of over EUR 500 million to modernize production facilities and complete reconstruction of the company in order to enable the company's production to fully meet the widely accepted quality standards Such as EN, DIN, ASTM, JIS, BS, Lloyd's Register, Germanischer Lloyd and others. HUMAN RESOURCES STOMANA INDUSTRY relies on the skills and efforts of its employees, recognizing that human resources are the most important in the business sector today. Primarily for the company is to attract, perfect and maintain their best cadres, ensuring their professional growth and rewarding their work. The Human Resources Department constantly develops and implements modern administrative models, including performance-based assessment, performance-based training, and ongoing training and pay-to-performance relationships. The company promotes the education and training of its staff and provides employees with the opportunity to participate in different workshops. The training covers a variety of educational subjects, including quality control, occupational health and safety, communication, finance and accounting, sales and marketing, development of technical skills, foreign languages. STOMANA INDUSTRY has consistently cooperated with well-known foreign companies that offer know-how, education in the technical and administrative sphere, as well as modern developments in the technology sector and their application in the industry. SOCIAL HANDLING Like any modern corporation, STOMANA INDUSTRY AD is widely involved in the social sphere and is a major partner in the development of Pernik. Every year, STOMANA INDUSTRY AD participates in the realization of a number of social projects at national and local level, combining its corporate values with the aim of benefiting the society. ENVIRONMENTAL PROTECTION The preservation of the environment is of high priority for the management of STOMANA INDUSTRY AD. Environmental issues have never been compromised with. Managing companies are constantly striving to improve the company's culture in terms of environmental protection, while fully respecting the requirements of the law, international standards and criteria, taking into account the best practices of highly developed countries. QUALITY POLICY As a manufacturer with rich history and experience, we are fully aware of the fact that our development and prosperity depend on customers' confidence and confidence in our ability to surpass their expectations in terms of both quality and delivery terms. The high quality of our products is provided by non-destructive control equipment from the fully equipped laboratories of STOMANA INDUSTRY AD. Assistance in developing new products is provided by the SIDENOR GROUP research center at the Greek capital Athens. COMPETITIVE PLAYER Thanks to the investments in new technologies, ecology and personnel, STOMANA INDUSTRY AD succeeds in meeting market expectations and is a major and competitive player on the European market for high quality steels with a wide range of products, including sheet metal, rolled steel, steel spheres and special profiles. /economic.bg
Source: Other (11.08.2017)

Tata Steel agrees deal to offload British Steel pension fund Tata Steel has agreed a deal to restructure its 130,000 member British pension fund after nearly a year of negotiations. The UK steelmaker, part of the Indian conglomerate, said it had approval from regulators and the trustees of the ?15bn British Steel Pension Scheme (BSPS) to offload the scheme into the Pension Protection Fund, the government’s pensions lifeboat. In return, Tata will inject ?550m into the old scheme and the BSPS will own 33 per cent of Tata Steel UK. A new defined benefit scheme, which provides a guaranteed income in retirement, will also be set up but with lower annual increases in income. The deal will clear the way for Tata to merge its European steel business with German steelmaker ThyssenKrupp. The legacy pension scheme has been a millstone around Tata’s British steelmaking business, which was threatened with closure last year after global steel prices crashed due to oversupply. Union members voted to accept the closure of the BSPS earlier this year in an attempt to keep the tradition of iron and steelmaking alive at Port Talbot and save 8,500 jobs across the company, which also includes smaller mills throughout Wales and England. (FT)
Source: Other (14.08.2017)

Europe’s steel industry seeks strength through M&A With its forbidding chimneys belching smoke into the Mediterranean air, the giant Taranto steelworks on the coastline of southern Italy makes an unprepossessing poster image for the long-awaited consolidation of Europe’s steel sector. As the largest mill in Europe capable of making the metal, it should have benefited from the economies of scale that give an advantage in heavy manufacturing. Instead, the plant has been hit by a succession of setbacks, including a legal case over accusations it poisoned local people with toxic emissions, nationalisation and eventually insolvency in 2015. Deliverance finally came this summer when the company to which it belonged, Ilva, was sold for EUR 1.8 bln to a consortium led by ArcelorMittal, the world’s largest steelmaker. Another significant corporate combination is also being planned. Europe’s next two largest producers by output, Tata Steel of India and Germany’s ThyssenKrupp, have been in talks for more than a year. The hold-up, a reform of Tata’s UK pension fund, has just been concluded, paving the way for a joint venture agreement. Mergers offer a way to lower costs and reduce the number of competitors in an oversupplied market, while giving greater clout to negotiate with big customers in key areas such as automotive. (FT)
Source: Other (14.08.2017)

Aurubis Bulgaria copper concentrate throughput more than doubles in Q3 FY 2016 Hamburg-based copper producer Aurubis said the copper concentrate throughput of its Bulgarian smelter more than doubled to 335,000 tonnes in the third quarter of its 2016/2017 fiscal year. In the nine months started October 1, 2016 the copper concentrate throughput of the Pirdop smelter in Bulgaria rose by an annual 37% to 986,000 tonnes, Aurubis said in an interim financial report. Sulfuric acid output at Pirdop rose 39% on the year to 1,020,000 tonnes during the first nine months of the company’s 2016/2017 fiscal year. In the April-June period alone, sulfuric acid output rose to 356,000 tonnes from 117,000 tonnes in the like period of last year. Cathode output at Aurubis’ Bulgarian smelter increased by an annual 8% in the October-June period to 172,000 tonnes. In the third fiscal quarter alone, cathode output rose 27% year-on-year to 57,000 tonnes. The Pirdop smelter is located 80 kilometres east of Sofia. Aurubis operates in Germany, Belgium, Bulgaria, Italy, Slovakia, the UK, the US and Finland.
Source: Capital (16.08.2017)

Does backwardated iron ore mean the steel market will cool? Last week saw raw materials commentators at Reuters predict a slowing of the rise of iron ore prices based on the shape of the futures curve. While at the back of trade participants’ minds, iron ore prices above 70/mt may be unsustainable in the long run, the lowering of expectations also represents a natural trend to moderate positions on longer-dated contracts. FIS analysts in Asia point out that the backwardation structure of onshore and offshore contracts are created for many reasons and a spread of a zero for current months or a very narrow one in quarters or Calendar contracts are not the norm. “Since buyers lend money to buy in physical, instead of making purchases for a whole year, which makes the nearby months always stronger than the deferred months,” explains FIS’ Hao Pei. “Even though supply of ores looks sufficient this year based on Chinese port stocks, FMG has piled on too much low grade material and Rio is becoming hot for sales again.” (Hellenic Shipping News)
Source: Other (16.08.2017)

Indian steel companies’ earnings set to rise: Moody's Moody's Investor Service anticipates earnings of Indian steel companies to rise in the next 12 months riding on rising domestic demand and protectionist measures. This forms a part of its latest report on Asian steelmakers which prompted the ratings service to alter its outlook for Asian steel industry to 'stable' from 'negative'. While this expectation factors in an increase in raw material prices and higher production volumes coming from capacity additions, Moody’s said the healthy GDP rate of growth of 7.5% to 7.8% in 2017 and 2018, coupled with government’s fiscal stimulus and rising infrastructure spends will underpin the demand. The earnings of the two rated Indian steel companies will remain steady or increase significantly during the coming 12 months owing to robust demand and protectionist measures, the report said. Tata Steel’s Indian operations are likely to see a jump in earnings before interest, taxes, depreciation and amortization (EBITDA) by almost a third in the current fiscal ending March 31, 2018 led by ramp up in 3 million tonnes production capacity at its new unit at Kalinganagar. (Economic Times)
Source: Other (18.08.2017)

Thyssenkrupp says it has no timeline on Tata Steel joint venture deal Thyssenkrupp AG has no timeline to make a final decision on a potential merger of its European steel operations with those of peer Tata Steel Ltd, a spokesman for the group said. He was commenting on a report in German daily Boersen-Zeitung, which cited people at Thyssenkrupp as saying no decision would be made until at least 8 September following a deal regarding Tata Steel’s UK pension liabilities. This is when a 28-day deadline for objections against the agreement ends. Tata received regulatory approval last week for a deal to cut its UK pension scheme liabilities, which was seen paving the way for a possible merger between its British and European steel businesses and those of Thyssenkrupp. “Thyssenkruppp has, in the past, pointed out that any agreement in this context has to be thoroughly examined before an assessment,” a spokesman said on Wednesday. “We will take the necessary time for this examination.” Thyssenkrupp said last week it would not be rushed into any deal with Tata, pouring cold water on investor hopes for a quick agreement. (Reuters)
Source: Reuters (18.08.2017)

Labor productivity in the mineral-raw materials industry is 2.5 times higher than the average in the industry Wages in the industry are rising 2% in 2016 for a consecutive year the Bulgarian Chamber of Mining and Geology reported a decrease in mineral extraction but an increase in revenues in the mineral-raw materials sector in 2016 and labor productivity, which is 2.5 times higher than the average in the national industry, in its annual economic report. The Chamber includes the largest companies in the industry. The reason for the decline in production is the situation on the international market - because of the high yields in the previous years, large stocks of basic raw materials were piled, and as a result of this the prices were low. In the second half of the year, the mismatch between demand and production on a global scale began to shrink, which had an impact on the appreciation of energy and lots of the non-energy products. The mineral-raw materials industry is of strategic importance for the Bulgarian economy. It is the basis of all other industries and is an important factor for the country's economic stability and energy independence. Top 5 of Europe Bulgaria holds a leading position in European mining. The country ranks third in copper production, fourth in gold mining, fifth in lignite mining. The main raw materials produced in Bulgaria are lignite, lead-zinc, copper and polymetal ores, gypsum, limestone, bentonite, kaolin, quartz sands, refractory clays, marble. As of April 2017, there are 520 concessions for extraction of underground natural resources. Most of them are for building materials - 328. For industrial minerals the concessions are 73, for rock-fill materials - 69, for metal minerals - 18, for oil and natural gas - 18, for solid fuels - 16. There is one concession for mining waste. Established deposits of underground resources are 1383. The state has given 128 search and survey permissions. 80% of mining activities in the country are carried out in an open manner. Ore-mining leads Total mineral extraction in Bulgaria in 2016 reached 97.68 million tons, a decrease of 13.1% (or by 14.77 million tons) compared to the previous year. A decrease in the output was observed in all sub-sectors. The drop is most serious in "Extraction of Liquid Fuels" for the second year - by 34% in 2016. There is also a decrease of 13% (11.4% in 2015) in the "Extraction of Rock Facing Materials". The subsectors that reported increase in 2015, now show decrease - "Mining of industrial minerals" - by 22%, "Extraction of inert and construction materials" - by 24%, "Solid fuels extraction" - by 12 %, "Mining of Metal Minerals" by 1%. The total increase in mining revenues is about BGN 200 million in 2016. By monetary indicators, the increase is only in the "Ore-mining" sub-sector - by 14.5%. Extraction per capita stays high - 14 tons per person. Last year it was the highest in the past 10 years, except for 2015. In the distribution of the the extraction from 2010 to 2016 there are lasting trends: solid fuels and metal minerals have a relatively constant increase in production and have the largest share. It is close to the extraction of building materials with a relative share of about 25%. The yield of industrial minerals is about 10%. In 2016, the total value of production of industrial enterprises in the sector amounted to nearly BGN 2.6 billion compared to BGN 2.4 billion in 2015. With the highest contribution to the total value of mineral raw material production is metal mining - 53% and coal - 28%. And for 2016 the trend of significant dominance of imports over the export of mineral resources is maintained - about 1.8 times. This shows that the industry has a great untapped potential in favor of the country's balance of payments. According to preliminary data for 2016, the products of the mineral raw material industry account for about BGN 4.7 billion of Bulgaria's total exports, which represents a very high contribution compared to other industries. To the untapped potential of the Bulgarian mineral-raw materials industry should be added the increase in the competitiveness of the industries that follow in the value chain. For example, copper ores and concentrates exported from Bulgaria are twice as cheap as the imported copper products. In such cases, a suitable approach and common actions should be found to increase the competitiveness of the whole Bulgarian economy, say the Chamber of Mining and Geology. High costs of environmental protection The costs that companies make to protect and restore the environment are relatively constant since 2010. Over the last 5 years, companies have put the most money on waste water treatment - 60% of total costs, 28% for soil and groundwater protection. Waste cost is 7.5%. The remaining costs are for air purification, noise reduction, forest protection, etc. The Bulgarian Chamber of Mining and Geology encourages the efforts of the companies to protect the environment by participating in various ecological projects. An important document - Standards for the sustainable development of the mineral-raw materials industry - has been adopted. Every year on the national day of the Miner's Day - 18 August, the Chamber handed out special annual environmental awards to companies that have no sanctions for violating environmental legislation. Priority is given to safety at work The specificity of the mineral-raw materials sector is associated with significant risks to the safety and health of workers in the sector despite serious technical and technological renewal in recent years. The total number of occupational accidents in 2016 according to the National Social Security Institute's operating data is almost unchanged compared to the previous year - 163. Most of them are again in ore mining - 117. Coal mines falls in this indicator, to a large extent due to the reduction in the number of people working there. The positive trend in the industry clearly shows that the measures taken have led to a sharp reduction in fatal accidents: 6 in 2015 and 1 in 2016. Lost calendar days in the industry in 2016 are 7917 and are 6% up as to 2015. But the trend since 2013, when this indicator was highest, is a reduction of the lost calendar days. Unfortunately, the "Mining Industry" sector is ranked first in the index of the frequency of accidents at work (number of accidents per hour worked) - 3.11 with an average for the country of 0.62. The index of severity (number of days lost from accidents at work and hours worked) is also high - 233 compared to an average for the country of 57. This predetermines the priority attention that companies attach to occupational safety issues. The emphasis is on prevention: finding the causes of traumatism, assessing the risks and drawing up measures to reduce it. They invest in state-of-the-art technology and staff training, implement and monitor strict work procedures. Members of the Bulgarian Chamber of Mining and Geology have already had companies with zero trauma for the last few years, but there are also companies where it is necessary to make serious efforts and to make significant investments in this sphere. As a branch organization, one of the main objectives of the market is precisely to improve working conditions in the mineral-based industry. At the suggestion and insistence of the Bulgarian Chamber of Commerce and Industry in 2012, the Labor Safety Regulations for the development of ore and non-ore deposits in the underground were updated, and in 2014 it was adopted. The Chamber's program is to update the remaining occupational safety regulations in the industry in 2017 as well as the Mining Rescue Regulations. Target funding of the safety regulations was provided by members of the Chamber - Assarel-Medet AD and Kaolin AD. In fact, the process started in 2016, but the adoption of the rules will take place in 2017. Technical assignments have been approved and a contract with the contractor for updates - Minproekt EAD has been signed. BGN 5000 higher incomes 22,342 are employed in the mining industry in 2016, according to preliminary data of the National Statistical Institute. There is a decline compared to 2015, when 24,617 people worked in the industry. This decrease is largely due to the release of people in the coal mining sub-sector due to Mina Cherno More's bankruptcy and the closure of the Babino mine from Vagledobiv Bobov Dol. The trend in recent years shows a steady drop in employment, albeit at a slow pace. The only exception is temporary growth in 2015. Despite the decline in human resources in the sector, output per employee increases and labor productivity continues to be nearly 2.5 times higher than the average for the industrial sector. The extraction industry is among the economic activities with the highest gross salary in Bulgaria. The average annual salary of the employees in the branch in 2016 is BGN 16,527, an increase of 2% compared to 2015. By comparison, the average annual salary for the country is BGN 11,534. This means that the workers in the mining industry receive nearly BGN 5,000 more. In the sector, the highest salary is received by employees in metal mining companies, and the lowest in sub-sector "Extraction of non-metallic materials and raw materials". The trend in income growth is lasting, indicating that those employed in the mineral-raw materials industry can rely on security and predictability for the future.
Source: 24 chasa (18.08.2017)

London zinc, nickel extend rally on steel gains London zinc rose to its highest price in a decade on Monday and nickel also rallied as investors ploughed into metals used by China's steel sector, seeing robust demand even as capacity is constrained by Beijing's drive to reform bloated industries. "Metals are pretty strong. The USD has been weaker and the Federal Reserve has turned a bit more dovish so that is supportive," said analyst Lachlan Shaw of UBS in Melbourne. Shaw noted that China's steel and aluminium markets could tighten with central government mandated cuts over the winter, although the aluminium cuts should be offset by rising Shanghai warehouse inventories. "Closing old and inefficient steel capacity in the 26 + 2 cities is set to cut production by 50 percent and aluminum by 30 percent, before mills and smelters elsewhere in China lift output to compensate," he said. (Reuters)
Source: Reuters (21.08.2017)

The mining industry has doubled payments to the state The amount that concessioners pay to the state has doubled for a year. In 2015, the companies in the branch brought in the treasury BGN 60 million in the form of concessions, and in 2016 these payments amounted to BGN 120 million. This was announced by Prof. Nikolay Valkanov, Chairman of the Bulgarian Chamber of Commerce and Industry. The mining and raw materials industry, which employs more than 22,000 people, employs another 120,000 as ancillary activities. Business providers are 83,000 small businesses with over 800,000 workers. The industry's contribution to GDP is 4-5%, said Prof. Tzolo Vutov, Chairman of the Scientific and Technical Union of Mining, Geology and Metallurgy. In his report, he pointed out that companies from the sub-sector "Inert materials" suffered from illegal exploitation by illegal companies that are not responsible for environmental protection. In response, Deputy Energy Minister Zheko Stankov pointed out that the Ministry is aware of the problem and has already made a proposal for a change in the Criminal Code to criminalize illegal exploitation.
Source: Standart (22.08.2017)

Minister Karanikolov: Kremikovtsi is the worst privatization deal ever! "I personally think that the privatization of Kremikovtsi copper smelter was the worst such deal in Bulgaria ever. The plant had enormous assets that were sold out at the lowest possible price of one US dollar, against a commitment on the part of the new owner to invest some BGN 400 million, without any guarantee of the investment," Economy Minister Emil Karanikolov told Blitz news agency. Minister Karanikolov said that the Prosecutor's Office should launch a probe into the dubious deal as soon as possible. Back in 2009, Brazilian steel maker CSN (Companhia Siderurgica Nacional) planned to invest a total of USD 400 million in Bulgarian ailing steel mill Kremikovtzi over a four-year-period. Among the other candidates were Ukraine-based Smart Group, a consortium between Czech investment company ML Moran and consultancy A.T.Kearney, Bulgarian Valentin Zahariev, owner of lead and zinc smelter OCK and Russian company Prominvest.
Source: Standart (23.08.2017)

Progress casting company increased its capacity by 50% The Stara Zagora-based machine-building company Progress increased its capacity by 50% due to the introduction of a new molding line, which allows the production of larger and more complex castings. "This is in fact a new plant that expands our capabilities on the global markets and makes us even more competitive," said CEO Slavin Yanakiev. The new production capacity allows the foundry to reach 15,000 tons of manufactured castings annually. So far, the maximum capacity was 10,000 tons. The investment was planned due to the significant growth of orders in recent years. Before the investment was made, the plant was overloaded. "The new acquisition is the result of the joint effort, experience and own know-how of the three machine-building enterprises in the Stara Zagora Holding Zagora - Progress, Preskov and Hraninvest Hranmachcomplect, so we invested just over BGN 3 million, and if we had to buy such a production line, it would have cost us no less than EUR 5 million, Yanakiev said.
Source: Capital (24.08.2017)

Tatas seek to regain top steelmaker tag by hitching a ride on beleaguered Essar Tata Steel, India’s second-largest private steelmaker, has expressed interest in bidding for debt-ridden Essar Steel, whose lenders have filed for revival of the company under the Insolvency and Bankruptcy Code, two people with knowledge of the development said. “Tata Steel has informally conveyed to us their interest in bidding for Essar Steel,” a senior executive at one of the lenders said. An investment banker familiar with the matter said Tata Group’s new chairman, N Chandrasekaran, is keen to get back the ‘top steelmaker’ tag that it lost to JSW Steel. Essar Steel, which operates a 10 million tonnes per annum (MTPA) facility in Gujarat, is facing insolvency proceedings after it failed to service debt. Tata Steel is currently undertaking projects to raise capacity to 18 MTPA from 13 MTPA now. If the steelmaker acquires Essar Steel, it would take Tata Steel’s capacity to 28 MTPA, well past JSW’s 18 MT. A spokesperson for Tata Steel neither denied nor confirmed its interest in bidding for Essar Steel. (Economic Times)
Source: Other (24.08.2017)

Toyota, steelmakers agree to cut steel metal prices Toyota Motor Corp. has agreed with major steelmakers to lower prices for steel sheet in the April-September period, the first price cut in 18 months. Toyota and steelmakers such as Nippon Steel & Sumitomo Metal Corp. reached the agreement as the price of coal used to fuel the sheet-making process has come down from its peak of late last year. The auto giant’s negotiations are seen as a bellwether for wider price moves. The price cut is expected to help automakers and other manufacturers that use steel sheet, including shipbuilders and electronics makers, to cut material costs, but make headwinds for steelmakers’ earnings. Steelmakers have apparently agreed to reduce the price of steel sheet sold to Toyota’s parts suppliers by several thousand yen per ton from the previous six months, despite initial reluctance to do so because of rising capital investment costs, the sources said. Prices are renegotiated every six months and retroactively applied to the relevant period. Toyota had agreed to the first price hike in three and a half years in the preceding six months as coal prices climbed due to a cut in production in China. (The Japan Times)
Source: Other (24.08.2017)

US steel executives appeal directly to Trump for import restrictions American steel industry executives have appealed directly to President Donald Trump for immediate import restrictions in a letter seen by Reuters, as a U.S. Commerce Department steel national security probe languishes and steel imports surge back to 2015 levels. Senior executives from 25 U.S. steel and steel-related companies sent the letter to Trump late on Wednesday saying the industry was suffering the consequences of government inaction but this could change with his "bold leadership" and "America First" vision. "The need for action is urgent. Since the 232 investigation was announced in April, imports have continued to surge," the executives said in the letter. "Immediate action must meaningfully adjust imports to restore healthy levels of capacity utilization and profitability to the domestic industry over a sustained period," they wrote. The Commerce Department has delayed the release of its recommendations from a "Section 232" investigation into whether steel imports pose a threat to national security, which could lead to Trump imposing broad quotas or tariffs on steel imports. (CNBC)
Source: Other (25.08.2017)

New way to make steel that is both stronger and more ductile A team of researchers from several institutions in China and Taiwan has developed a new way to make steel that offers more strength and ductility. In their paper published in the journal Science, the team describes part of the process and the ingredients that went into making the new type of steel and suggest possible applications. As the researchers note, there are many industrial applications based on steel that require a high degree of strength and ductility (the ability to be pulled or deformed without breaking)—the higher degree of both, the better. But traditional steel-making techniques generally require a tradeoff: More strength means less ductility, or vice-versa. In this new effort, the researchers report that they have found a way around this problem. To make the new steel, the researchers developed a new technique they call deformed and partitioned (D&P)—they cannot give all the details, of course, because that would prevent them from capitalizing on what they have created. (phys.org)
Source: Other (28.08.2017)

The mines in Madan with investments of BGN 100 million in 5 years BGN 100 million have been invested for 5 years in the mines of Gorubso – Madan, KCM - Plovdiv and Minstroy Holding, announced Prof. Dr. Nikolay Valkanov. Prof. Valkanov said "We have promised over the years that Gorubso Madan will be a leading enterprise, and today it's a fact." Just days ago, its director received a prize for the company with the highest productivity in 2016 - 33% - not 3% but 33%. This has happened in the last five years and together with our friends from KCM - Plovdiv we have invested a total of BGN 100 mln. Only this year the investments amounted to BGN 15 mln. This means new machines, technologies, new opportunities and, of course, better pay," Professor Valkanov said. All 920 employees and workers of the mining company received a special bonus of BGN 150.
Source: Maritsa (29.08.2017)

World crude production up 6.3% World crude steel production for July 2017 totalled 143.2Mt, a rise of 6.3% when compared with the same period last year, according to figures released by worldsteel. China’s crude steel production for July 2017 increased by 10.3% to 74Mt when compared with last year’s figures, and the USA’s output was up 5.6% at 7.1Mt. In India, steel production was up 3.5% at 8.4Mt and in Brazil there was a small rise of just 1% to 2.8Mt. The Germans produced 3.5Mt, up 3.6% and the Turks churned out 3.3Mt, up a staggering 27.8%. The crude steel capacity utilization rate of the 67 countries reporting to worldsteel in July 2017 was 72.1%, 3.2 percentage points higher than in July 2016, but 1.5 percentage points lower than in June 2017. (Steel Times International)
Source: Other (30.08.2017)

One World Trade Center Reveals Yet Another Problem for Steel New York’s One World Trade Center is emblematic of a struggle by steelmakers to boost demand from construction, an industry that buys almost half the output of the alloy. While the Twin Towers it replaced were erected around scores of steel columns, the Western Hemisphere’s tallest building is held up by a concrete core to help prevent the kind of devastating collapse that followed the terror attacks of Sept. 11, 2001. Planners of skyscrapers and bridges have turned toward concrete over structural steel as it can withstand high temperatures, is cheaper and lasts longer. Since 2000, steelmakers outside China expanded output of structural beams and columns at only about half the pace of rods, or rebar, used to reinforce concrete, the World Steel Association says. "Concrete is good because it’s cheap, very enduring, it grows old well and, if it’s of good quality, is absolutely fire safe," said Sergey Kuznetsov, chief architect for Moscow, Europe’s second most-populous city. (Bloomberg)
Source: Other (31.08.2017)

Tata Steel's loss widens as the ?1 sale of its Scunthorpe long products business bites Tata Steel has revealed it lost almost ?200m on the sale of its Scunthorpe-based long products business for a nominal ?1. The sale of the beleaguered unit back in May 2016 to turnaround investor Greybull Capital made a significant dent on the company's profits, according to annual accounts filed at Companies House for Tata Steel UK. Greybull, which specialises in taking on struggling businesses, renamed the long products division British Steel and took on around 4,800 of Tata's workers. The business was purchased for a nominal fee of ?1 as Tata's UK division restructured to focus on higher-margin products as it dealt with ongoing losses. The UK's steel industry has faced challenges over recent years as it competes with cheaper international competition and demand declines. However, in January, seven months after the deal, British Steel said it was back in profit for the first time since its acquisition from Greybull. Executives at Tata told the Sunday Telegraph they were privately "furious" at what they saw as British Steel claiming the benefits of their hard work to get the business back in profit. (City A.M.)
Source: Other (04.09.2017)

US domestic steel wants lasting fix from Trump tariffs Along the Detroit and Rouge rivers, Michigan steel workers watch the news out of Washington and hope. Some steel officials anticipate that a Trump crackdown on imports would be a boon for the struggling industry, even as voices calling for the president to avoid a potential trade war with China have grown louder. That national conversation pits auto companies posting near-record profits against a U.S. steel industry that saw employment fall by over 11 percent in the last decade. The southeast Michigan industry sees steady work due to demand from Detroit’s Big Three. Workers take a lot of overtime because steel companies aren’t hiring to meet current demand, and it’s unclear if there’s any “upturn” coming for what has been a cyclical industry. On the campaign trail, Trump was focused on jobs: creating jobs, bringing back jobs, stopping the loss of jobs. (The Detroit News)
Source: Other (07.09.2017)

Thyssenkrupp sees boost for steel from shift to electric cars Thyssenkrupp’s European steel business, expected to be merged soon with its counterpart at Tata Steel, will get a boost from the auto industry’s shift toward electric vehicles, a senior executive at the group said. Investors and analysts are closely watching any hints from Thyssenkrupp over the restructuring of its steel operations in Europe, with many expecting a merger could mark the first step towards a full exit of the business. However, Bernhard Osburg, head of automotive sales at Thyssenkrupp Steel Europe, highlighted the potential value of the steel business in future as major car industry customers shift away from combustion engines towards battery technologies. “Without steel there will not be electric mobility,” he told journalists at Thyssenkrupp’s headquarters late on Tuesday. Thyssenkrupp Steel Europe supplies about 6 million tonnes of steel to the car industry and its supply chain per year, accounting for about half its total annual production. (Reuters)
Source: Reuters (07.09.2017)

The Chinese Wrench in India’s Struggling Steel Industry China’s recent cutbacks in steel production capacity have sent global prices soaring, catching off guard Indian consumers who were betting on depressed metal market. In June, state-owned gas transporter GAIL India had cancelled Rs 1,250 crore tender for the Bokaro-Dhamra section of the the Jagdishpur-Haldia pipeline project, hoping for a fall in steel prices. But the gas transporter’s bet has gone wrong with prices of domestic steel rising. Global steel prices have jumped by nearly 30% between June and August. The benchmark international prices of HR coil, which is used as raw material by pipe manufacturers and accounts for 85% of the total costs, have risen by more than 30% between June and August, as per data compiled by credit rating agency ICRA. Indian prices of HRC have trailed the global trend but has still risen by 12% between the first week of July and the first week of September. Domestic HRC were ruling at Rs 35,750 per tonne in the first week of July but rose to Rs 40,000 per tonne in the first week of September, as per data compiled by SteelMint, a steel market intelligence provider. Pipe manufacturers have started passing on the increased costs to gas pipeline developers, which is getting reflected in fresh price bids invited by the oil sector PSU for the project. Based on received price offers, GAIL will soon hold reverse bidding. It would be a big loss of face for the PSU if the discovered price is higher compared to the initial bidding. GAIL’s worry does not end here. Chinese supplier North China Petroleum Steel Pipe Co Ltd, which had emerged as the lowest bidder for the project, has moved the Supreme Court against PSU’s decision to scrap the tender and the matter may come up for hearing later this week. The Modi government has targeted raising the share of natural gas in India’s energy mix from 6.5% in 2015 to 15% over next few years and planned to double the length of pipeline to 30,000 km. GAIL, which is tasked to lay a major part of new pipelines, might have to go back to the drawing board to check project feasibility. That means delay in project execution. (The Wire)
Source: Other (11.09.2017)

Largest metal companies: Under the pressure of low prices Depreciation of metals has lowered the revenue of companies in the sector, but profits are better Metallurgical companies reported significant revenue decline, but generally better profits in 2016. The reason is lower metals prices, which, on the one hand, have reduced sales in financial terms, but at the same time have reduced the costs of enterprises. Thus, almost all companies in the sector have managed to increase their profits or reduce their loss. An important factor for the weaker total revenue of the top ten companies, which dropped by an average of almost 18% over the previous year, is the sector leader Aurubis, which did not operate for more than 50 days due to planned overhaul. This has affected volumes and sales. Overall, companies in the industry are working hard, and even the more problematic ferrous metallurgy has managed to take a sip of air last year. This happened after Brussels imposed anti-dumping duties on some imported steel from China and thus supported European production. The major breakthrough in 2016 is the substantial reduction in energy costs, mainly due to the new lead plant at KCM - Plovdiv. A good tendency is also the reorientation of most enterprises towards more expensive products. Drop due to repairs The Pirdop plant owned by the German group Aurubis has always retained its second position among the largest companies in the country. This is despite the decline of revenues by over 28% last year. "The decline is mainly due to the large-scale overhaul carried out in the spring of last year when the plant was completely stopped for 54 days," Aurubis Bulgaria said. The company's report for the financial year until the end of September shows that the Bulgarian enterprise has processed about 17% less concentrate and has therefore produced fewer copper anodes and cathodes. Financial impacts have also been influenced by market factors such as lower sulfur acid revenues, that the company produces as a by-product. The company's profit also declines, but profitability remains high and even rises over the previous year - from BGN 0.05 to each BGN 1 earnings net profit in 2015, the company has raised its margin to BGN 0.06. After the completion of the capital repair, in which EUR 44 million was invested, the company expects to return to normal production in 2017. "This year, the plant is expected to work at full capacity, which should lead to about 25% increase in production and profit growth," the company said. The company is currently implementing an investment program of EUR 180 million, which will end in 2018. This year, the investment will focus on further streamlining the processes of production, implementation of IT systems for automation and improvement of business processes and expansion of landfill for wadding waste. "These projects are expected to lead to more efficient production and an additional positive effect on the environment," Aurubis said. The new plant The Non-ferrous Metals Smelter KCM in Plovdiv increased its revenue last year, but reported a loss, albeit significantly lower than in 2015. However, the company explained that the net result creates an inaccurate picture of what was 2016. "This was one of our best years, and our operating profit increased from BGN 24.7 to BGN 30.5 million and the net loss was the result of a change in exchange rates, but this is a hollow loss," said the Chairman of the Supervisory Board of KCM Rumen Tsonev. The main reason for improving the results is the investments made by the company in recent years. At the end of the year, the plant achieved its largest zinc production since KCM started its existence. "In zinc production we have made technological investments, not expansion, so in practice with the existing capacity we have achieved our best results," Tsonev said. The company also managed to achieve a very high level of recovery of residual zinc, which is more profitable for production, which is also the result of technological modernization. At the end of 2016, KCM reached the production capacity of its new lead plant, which was also part of the EUR 140 mln investment program. It happened two years after it started, given that in such projects the optimization of the technological regime takes 6-7 years. One of the biggest improvements with the new installation is in terms of energy costs. Old lead-production used coke, which is now replaced by oxygen, natural gas and coal. "We have 40% lower costs than in the old production, and as a calorific value of the energy, not as a price, we have an improvement of 10-15% compared to the costs that were envisaged under the project," Tsonev said. In his words, all these factors are the reason for better operating results. Non-ferrous products Mining plants saw a harder year than the products makers. "That's nice because they have a higher added value," said the executive director of the Bulgarian Metallurgical Industry Association Politimi Paunova. According to her, however, as a share of the country's exports, the non-ferrous metallurgy registered a slight decrease - from about 13.5% in 2015 to just under 12%. In addition to the temporary cessation of production in Aurubis, the main reason for this is the lower prices of metals and, in particular, of copper. "At the end of the year, there was an increase, but the average annual price was virtually about 20% lower," Paunova said. The depreciation of copper, especially in the first seven months of the year, is the reason for the lower earnings of Sofia Med, the report of the Greek Viohalco, which owns the Sofia-based plant, shows. The loss of the company, however, has declined nearly seven times. Last year the company invested EUR 3.7 million, which was aimed at producing output with higher added value. Etem, which produces aluminum profiles for different uses and which is also part of the Greek holding Viohalco, also increasingly relys on special products and orders from the automotive industry. Last year the volume of production grew by 19%, although revenues grew more modestly due to lower metal prices. This year, the company will continue to rely on products with high added value, and the expectations are that sales for the automotive industry will grow. Investments in Shumen Shumen-based aluminum producer Alcomet achieved about 6% less revenue, but a three-fold higher profit. Lower income is the result of declining prices of aluminum, but the costs also fell, and at a faster pace. "The commodity market was favorable, we were buying at very good prices," said Fikret Ince, one of the major owners and chairperson of the company's supervisory board, which last year was very good. "We were working at full capacity thanks to the demand on the European market where we export 93% of our output," he added. Key to the profit surge is the reorientation of the company over recent years to products higher added-value products. "This provides us with a larger margin which, at practically reached maximum capacity, leads to profit growth," Ince explained. In 2017, the company expects to increase production. "We expect our turnover to reach over EUR 170 million, and profit before interest, taxes and depreciation (EBITDA) will be about EUR 20 million," Ince said. Last year, Alcomet launched a two-year investment program worth EUR 36 million, which is expected to increase the plant's capacity by 35% to 100 thousand tons per year. The equipment is already bought, but will be put into operation in stages. The expected result is new capabilities to allow the production of special products and to reduce costs. "Our goal is to reach a turnover of EUR 250 million by 2020," Ince said. The expansion of production will also increase the number of employees by about 100 people and the staff would reach a total of 1000. The company has already taken measures to secure workers, and since last year has created a class in metallurgy in one of the secondary schools in the city. "We have very good specialists in Shumen, the problem is only with the lack of technical staff," Ince specified. Uplift For the first time since the crisis, the ferrous industry has grown slightly in 2016. The subsector is represented by two companies - Stomana Industry S.A., owned by the Greek Viohalco, and Promet Steel, which is part of the Ukrainian group Metalinvest. The first manufactures liquid steel, and the latter only works with billets from Ukraine, with import difficulties in recent years impacting on its results. The decline of nearly 13% in last year's revenues of Stomana Industry S.A. was due to low prices. At the same time, the volumes of special steels sold have increased. This is also evident from the significant decline in the company’s loss. A few years ago, the company made a workshop for long products that have a higher added value and are used in various sectors, including automotive. Apart from that, the company also produces flat products. The results of Promet Steel show nearly 10% higher revenues and the company was able to make a profit. "There is generally a stir in the steel industry, and the European Commission has imposed anti-dumping duties on imports of certain products from China, which has helped some growth," Paunova said. Forecasts in metallurgy as a whole are difficult, as the development of the sector largely depends on external factors - both economic and political. The reason for moderate optimism is given by the already made and forthcoming investments, which help companies to reduce their costs and to produce more expensive products. To a large extent, the development of the sector will depend on whether the appreciation of metals, which started at the end of last year, will remain a trend.
Source: Capital (13.09.2017)

Tata Steel-ThyssenKrupp merger of steel arms nears finish line A deal to merge the European steel operations of Tata Steel and ThyssenKrupp could be struck this month, after Tata removed a significant obstacle by offloading its UK retirement fund. The Indian group announced on Monday that it had ditched the $19.8bn British Steel Pension Scheme (BSPS), which it had argued threatened the survival of its UK business, upon receiving approval from regulators. Tata Steel in August agreed a deal to restructure its 130,000-member British pension fund after nearly a year of negotiations. As well as a liability for Britain’s largest steelmaker, the pension scheme was a stumbling block to a merger since the two companies announced they were in talks over a joint venture more than a year ago. ThyssenKrupp said on Monday those negotiations were “well on the way” and that “an agreement could be possible before the end of this month”. It added that, as its executive board was “discussing strategic options”, a supervisory board meeting scheduled for September 12 had been postponed. A detailed memorandum of understanding would be the next likely step, followed by due diligence and then signing of a final deal, said the person. (FT)
Source: Other (14.09.2017)

China’s Steel Mills Run at Full Tilt as Output Hits New Peak Steel production in China chalked up a fresh monthly record as mills in the world’s top supplier increase output to profit from a rally in prices to six-year highs before government-ordered pollution curbs are implemented. Crude steel output climbed to 74.59 million metric tons last month, surpassing the previous peak of 74.02 million in July, and up from 68.57 million in August 2016, according to the statistics bureau Thursday. While that’s an all-time high for the month, daily output was less than the record in June. Production surged 5.6 percent to 566.4 million tons in the first eight months, also a record. Steel prices have been supercharged this year in the country that accounts for half of global output. A crackdown on illegal mills shuttered some supply, boosting the remaining producers, while demand has been underpinned by significant state-backed stimulus. Investors are also eyeing signals that the government will press ahead with anti-pollution curbs over winter. Spot reinforcement bar in China, a benchmark product used in construction, hit 4,396 yuan a ton early this month, the highest level since October 2011. Prices have gained 30 percent this year. (Bloomberg)
Source: Other (14.09.2017)

China steel giant Baowu eyeing M&A push China’s top steelmaker China Baowu Steel Group, formed in a mega merger last year, has its sights set on more deals with smaller smelters amid a government drive to consolidate the market, the official China Daily reported on Thursday. China is driving a major campaign to rationalize its sprawling state sector from steel to energy as it looks to reduce overcapacity and increase state control of key markets. “We are going to integrate more steel companies to obtain an advantageous scale effect,” Chen Derong, general manager of Baowu Steel, told the newspaper. “We are now actively contacting some target companies for further mergers.” Baowu Steel was formed by a merger between Baoshan Iron and Steel Group (Baosteel) and its smaller rival Wuhan Iron and Steel, which was formally completed in December last year. The merged group is the world’s second-biggest steelmaker, behind only ArcelorMittal ISPA.AS. China aims to put at least 60 percent of the nation’s steel capacity in the hands of its 10 biggest firms by 2025, and has encouraged acquisitions and mergers in the industry for years. (Reuters)
Source: Reuters (15.09.2017)

China’s 2017 steel output to rise 3-5 percent despite mill closures China’s steel output is expected to grow 3 percent to 5 percent in 2017 compared with last year, said a trade body official on Saturday, despite the closure of small outdated mills as surging prices prompted larger players to turn out more metal. The world’s largest steel producer will make about 840 million tonnes of crude steel this year, said Qu Xiuli, vice president at China Iron and Steel Association (CISA). Last year, the country produced 808 million tonnes of steel. Steel output at member steel firms of the association – each with annual capacity of more than 1 million tonnes – rose 6.8 percent in the first seven months this year, while small steel mills saw a 2 percent drop in production from last year. That comes after Beijing’s crackdown that shut 120 million tonnes of low-tech steel capacity in the first half of this year and a continuing series of environmental inspections in an effort to curb pollution. Of the 808 million tonnes of steel produced last year, only about 36 percent was produced by the top 10 largest steel mills in China, and their portion is expected to increase this year. (Hellenic Shipping News)
Source: Other (18.09.2017)

Thyssen and Tata Sign Deal to Forge Europe’s No. 2 Steelmaker Thyssenkrupp AG and Tata Steel Ltd. reached a tentative deal to merge their European steel businesses in a bid to create the region’s second-largest producer and tackle overcapacity in the industry. The German and Indian companies have signed a memorandum of understanding for the joint venture to be named Thyssenkrupp Tata Steel, which will be equally owned by both parties, they said Wednesday. The transaction is expected to be finalized at the beginning of next year and will require the approval of the European Union. The two foresee annual synergies of 400 million euros ($480 million) to 600 million euros and the venture will be closer in size to Europe’s top producer, ArcelorMittal. Savings will be made in areas including capacity utilization, sales and administration and research and development. The companies flagged the possible loss of as many as 4,000 jobs, from a newly combined workforce of about 48,000. Thyssenkrupp and Tata have been in tie-up talks for more than a year to drive the latest wave of consolidation as steelmakers seek ways to counter overcapacity and cut costs. (Bloomberg)
Source: Other (21.09.2017)

Iron ore sinks as ‘peak steel’ call, supply angst rattle market Iron ore has been dragged back into the $60s after getting hit by a barrage of bad news, with persistent concern about rising global supply, fresh questions about the outlook for demand in China, and a warning from Australia’s central bank that the top buyer may be nearing peak steel. The benchmark spot price for ore delivered to Qingdao slumped 10% in the past four days, ending at $68.85 a dry metric ton on Tuesday, the lowest since July, according to Metal Bulletin. The sell-off in the commodity, which hit almost $80 in August, follows the first back-to-back weekly loss since June. “As we get into the fourth quarter, we see demand in China pulling back, demand for steel pulling back,” Paul Butterworth, research manager for steel raw materials at CRU International, said in an interview in Singapore. “It’s quite likely the steel mills will say ‘well, we’ve got sufficient material on hand at the moment, so we can withdraw from the market for now’.” Iron ore is coming under pressure as weakening data from China have undermined the outlook for the coming months at the same time as the top steelmaker plans output cuts over winter to ease pollution. (Bloomberg)
Source: Other (21.09.2017)

‘Every little breeze seems to whisper Louise’ A sintering plant owned and run by voestalpine Stahl GmbH in Linz, Austria, has taken delivery of a new Aumund Fordertechnik rotary discharge machine, type LOUISE, having used similar machinesfor the past 40 years. The Austrian steelmaker, a leading European player and a subsidiary of voestalpine AG, has relied upon four LOUISE machines, supplied by Aumund, to extract raw materials and has now replaced one of them. According to Aumund, the new rotary discharge machine is a BEW-FLS type LOUISE designed for restricted environments and equipped with a slewing discharge arm. It has an extraction capacity of 1,500 tonnes/hr. "Repeat orders like this are a great testament to the durability of our machines," said Dr. Rainer Bertling, sales director of the metallurgy division of Rheinberg-based Aumund. voestalpine Stahl's fully integrated steel mill in Linz has every stage of the steelmaking process on one site, from coking and sintering plants to the blast furnace, steel plant, hot-rolling and cold-rolling mills as well as galvanising and strip coating. (Steel Times Magazine)
Source: Other (21.09.2017)

New hybrid steel opens up new design possibilities, says Ovako Swedish steelmaker Ovako is claiming that it's new family of hybrid steels represents one of the most significant developments in steel metallurgy 'for decades' and offers the properties of tool steel, maraging steel and stainless steel combined with the production economy of engineering steel. Launching it's new range of products at the Euromat 2017 exhibition in Thessaloniki, Greece, Ovako claims that it's new steel product opens up new possibilities to use steel components in very demanding applications. According to Ovako, hybrid steel offers exceptional performance, especially at elevated temperatures, and can be produced in high volume to meet customer demand at an attractive price. The company claims that the properties of hybrid steel are made possible by an innovative hybrid combination of secondary hardening and precipitation hardening mechanisms. It can also reduce the number of manufacturing steps required to produce a finished component. (Steel Times Magazine)
Source: Other (21.09.2017)

Tata Steel-Thyssenkrupp deal will reduce exposure to structurally weaker business Tata Steel 's recently signed memorandum of understanding (MoU) with Thyssenkrupp AG to create a 50:50 JV in Europe will help the Indian steel major reduce exposure to a structurally weaker business, Fitch Ratings said. Tata Steel's European operations have been facing a weak regional demand with high conversion costs and lack of captive raw-material sources. According to the ratings agency, reduction in exposure to this industry and increase in the significance of its more-profitable Indian operations will reduce earnings volatility and improve Tata Steel's overall business profile. Having said that, the Indian steelmaker's Long-Term Issuer Default Rating (IDR) of 'BB' remains on Rating Watch Evolving until further clarity on the proposed JV emerges with the signing of definitive agreements, which is expected by March 2018. In addition, Fitch will look out for details on Tata Steel's plans to significantly expand capacity in India and evaluate its impact on the company's financial metrics and credit profile. (Economic Times)
Source: Other (02.10.2017)

Salzgitter builds new line for automotive steel German steelmaker Salzgitter will build a third hot-dip galvanising line to strengthen its position in the market for premium steel used in the car industry, it said on Friday. The new line, which is scheduled to start operating in the second half of 2020, will have an annual capacity of 500,000 metric tonnes, on top of the 1.3 million tonnes Salzgitter has with its existing two lines. Salzgitter would not say how much it would invest in the new line but similar expansions by competitors have cost hundreds of millions of dollars. "This project represents the implementation of a key component in the group's 'Salzgitter AG 2021' strategy, namely a consistent focus on the premium product range," it said. Jefferies analyst Seth Rosenfeld said while there was a risk a rush to boost capacity could weigh on the current high margins for galvanised steel, industry consolidation through ArcelorMittal's acquisition of Italy's Ilva, and Thyssenkrupp and Tata Steel's plans to merge their European steel operations should help. (Economic Times)
Source: Other (02.10.2017)

British Steel swoops on Dutch steel maker in first acquisition since rescue British Steel has emerged from the UK’s steel crisis with its first international acquisition, less than 18 months after Tata abandoned the troubled business. British Steel’s owners have announced its first deal to buy FN Steel, which employs around 300 people in the west of the Netherlands, where it makes premium wire rods used by many major European car makers. It is the latest sign of green shoots for the steel company, which turned a profit in the year to March after being rescued last year by Marc and Nathaniel Meyohas, the brothers behind investment firm Greybull, who also bought up the Scunthorpe steelworks. The turnaround specialists paid a nominal ?1 for the business after Tata Steel decided to pull back from the UK steel industry, which had been pushed to the brink by cheap steel imports from China. Greybull injected ?400m into the struggling plant to save around 9,000 local jobs. Since then steel prices have stabilised and Tata last week announced it would put its remaining UK steel assets - including Wales' Port Talbot steelworks - into a joint venture with Thyssenkrupp. (The Telegraph)
Source: Other (02.10.2017)

S Korea’s exports surge to record on steel, semiconductors South Korean exports surged to a record last month in the latest sign that stronger global trade is helping to underpin growing momentum for the global economy. The nation’s shipments abroad rose for an 11th month in September, driven by overseas demand for steel, semiconductors and petrochemical products. Exports jumped 35% from a year earlier, the trade ministry said yesterday. The median estimate of economists was for a surge of 25%. Imports gained 21.7%, versus expectations for them to advance 20.6%. The trade surplus was $13.8bn, also a record. Month-on-month growth in exports was the most since January 2011. There were 2.5 more working days in September compared with a year earlier and some companies pushed out shipment of products before 10-day Chuseok holidays, the trade ministry said. The better-than-expected data came after China announced its factory gauge hit a five-year high. The results also show that South Korea’s economy is demonstrating resilience even as the war-of-words between US President Donald Trump and North Korean leader Kim Jong-un heightens tensions on the peninsular. (Bloomberg)
Source: Other (02.10.2017)

RIEW-Pazardzhik said no to the tungsten mine near Velingrad The Regional Inspectorate of Environment and Water in Pazardjik rejected the implementation of the investment proposal for "Extraction and processing of tungsten containing ores from the Grancharitsa Center". The press service of the Eco-Inspectorate reported the news after the Director signed a decision on the Environmental Impact Assessment/EIA), which does not approve the implementation of the investment proposal of RESURS-1 AD on the territory of the municipality of Velingrad. At a meeting the 19-member council of RIEW-Pazardjik did not approve the EIA report by the investor with 18 votes against against and 1 in favor. The expert's reasoning is that the report does not reflect the existing drinking water abstractions that fall within the declared site. No account has been taken of the potential impacts on surface water and it is totally realistic for drinking water to be polluted by mining and the same is true for the atmospheric air in the area of a future mine, and another reason for the experts' decision is that there are no measures to prevent pollution of water sources. The opinion of the regional health inspectorate of Pazardzhik, according to which the activity of the mine will lead to a serious negative impact on the environment in the area and risks to the health of people near the deposit, is also taken into account. The decision was also affected by the 6,000 written submissions from citizens, public organizations and legal entities that declare a general disagreement and oppose the implementation of this investment proposal.
Source: Banker (05.10.2017)

Rotherham steel plant's mothballed equipment reinstated Massive casting equipment which had been mothballed has been reinstated at a steel plant, creating "hundreds of new jobs". Tata Steel scrapped the small bloom caster at Rotherham's Aldwarke works 18 months ago during the UK steel crisis. New owners Liberty House said it had employed 64 new staff and a further 150 would be hired in the next six months. The company said it ÷planned to increase production "threefold within a year by bringing this equipment back into use". Executive chairman Sanjeev Gupta said: "This is a very big part of our jigsaw in terms of turning this business around. "The plan has always been to bring this plant back to a million tonnes and more, which will allow us to reduce costs to make this viable again." He said a second electric arc furnace would be reignited sometime in the new year, taking on another 86 "or more" employees. The small bloom caster turns liquid steel into solid blocks before it is processed into bars at a mill at the Rotherham site. (BBC)
Source: Other (05.10.2017)

European Commission drops Serbian steel makers from anti-dumping list The European Commission's decision not to impose anti-dumping measures on steel producers from Serbia gives local steel mill Zelezara Smederevo a competitive advantage over sector players, prime minister Ana Brnabic said on Friday. Serbia will be able to export steel to the EU without anti-dumping duties and Zelezara Smederevo will be much more competitive than any other manufacturer, Brnabic said as quoted in a statement by the government. The Commission's decision means that Serbia has planned and implemented well the contract with China's Hesteel for the sale of Zelezara Smederevo and that the country is a secure location for the steel and iron industry, Brnabic said. Earlier on Friday, the Commission said the EU's imports from Serbia were not included in the final regulation for imposing anti-dumping duties on imports of hot-rolled flat steel products from Brazil, Iran, Russia and Ukraine because their volume was considered negligible. (SeeNews)
Source: Other (09.10.2017)

EU sets duties on Brazil, Iran, Russia, Ukraine steel The European Union has decided to set duties on hot-rolled steel from Brazil, Iran, Russia and Ukraine after a complaint by EU manufacturers that the product used for construction and machinery was being sold at excessively low prices. The EU will levy anti-dumping tariffs of between 17.6 and 96.5 euros per ton from Saturday, its official journal said. European steel association Eurofer, which brought the complaint, said it was happy the minimum price proposal had been dropped, but expressed disappointment that the Commission had opted for fixed-price rather than normal percentage tariffs. Among companies newly facing tariffs were the Brazil arms of ArcelorMittal and Aperam, both of which also produce in Europe, Companhia Siderugica Nacional, Usinas Siderugicas de Minas Gerais and Gerdau - at rates between 53.4 and 63.0 euros per ton. Iranian steel would be subject to a duty of 57.5 euros per ton and Ukraine’s Metinvest Group [METIV.UL] 60.5 euros. Rates for Russian producers varied from 17.6 euros for Severstal, 53.3 euros for NLMK to 96.5 euros per ton for MMK. (Reuters)
Source: Reuters (09.10.2017)

Kobe Steel admits it falsified data on aluminium and copper parts Kobe Steel has admitted to falsifying inspection data on about 20,000 tonnes of metals used in aircraft and automobiles in the latest quality scandal to hit corporate Japan. The company said the issue affected shipments from four domestic factories to about 200 customers in the year to August 2017. End users included the troubled Mitsubishi Regional Jet. The scandal is a blow to Japan’s third-largest steelmaker and highlights wider concerns about inspection and quality control, after a string of scandals from wobbly building pilings at Asahi Kasei to overstated fuel economy at Mitsubishi Motors. Products affected included 19,300 tonnes of aluminium plate and extrusions; 2,200 tonnes of copper strip and pipe; and 19,400 cast and forged aluminium parts. Kobe Steel said it was not aware of any safety concerns or actual problems as a result of the shipments. It gave no information on what, if anything, was wrong with the metals it shipped. (FT)
Source: Other (09.10.2017)

Tata Steel acquiring intellectual property rights from mining major Rio Tinto Tata Steel could reduce the cost of making steel by 20% with the company acquiring intellectual property rights (IPR) for a technology from global metals and mining major, Rio Tinto. The technology will give Tata Steel, an edge over global steel majors owning low-carbon steelmaking technology. The company has been trying out the technology at its IJmuiden steelworks in the Netherlands. Thanks to its captive mines, Tata Steel is one of the low-cost producers of Steel in the world. This along with the budding alliance that its European subsidiary has announced with the steel business unit of German engineering company ThyssenKrupp is likely to give the Indian steel making company enough prowess to stay ahead of its peers. Commenting on the development, T V Narendran, Tata Steel’s Managing Director, said: “Acquisition of full intellectual property rights for Hlsarna, is a significant step towards establishing our pioneering credentials in the steel manufacturing space and ensuring the long-term sustainability of the business.” (Economic Times)
Source: Other (12.10.2017)

Malaysia levies anti-dumping duties on steel from four countries The Malaysian government has decided to impose a provisional anti-dumping duties ranging from 7.27% to 111.61% on cold-rolled stainless steel (CRSS) imports from China, South Korea, Chinese Taipei and Thailand. The International Trade and Industry Ministry (Miti) said the measure would be effective not more than 120 days from Oct 12, 2017. “The Government has completed the preliminary anti-dumping investigation concerning imports of CRSS from these countries and found that there are sufficient evidences to continue with further investigation on the importation of CRSS from the alleged countries,” it said. Miti said the investigation had been initiated in accordance with the Countervailing and Anti-Dumping Duties Act 1993 and Countervailing and Anti-Dumping Duties Regulation 1994 on May 15, 2017 based on a petition filed by Bahru Stainless Sdn Bhd (the petitioner) on behalf of the domestic industry producing CRSS. It said the petitioner alleged that imports of CRSS from the alleged countries were being dumped into Malaysia at a price much lower than their domestic price, causing material injury to the industry in Malaysia. (The Star Online)
Source: Other (12.10.2017)

Kobe says 500 firms affected in steel scandal Japan's Kobe Steel has increased the number of firms it says have been affected by its data fabrication scandal from 200 to 500. It also said it had found "inappropriate actions" relating to nine more products, including falsifying data. Earlier this week, Kobe admitted falsifying quality data on some of its products for up to a decade. The news has wiped out about $1.8bn off Kobe Steel's market value this week. More than 30 non-Japanese customers, including Daimler and Airbus, have been affected by the firm's data fabrication, Japan's Nikkei newspaper reported on Friday. Airbus said it did not buy products directly from Kobe Steel, but that it was investigating its supply chain. "So far we have not identified any suppliers that procure materials from Kobe Steel for parts fitted on our aircraft," a spokesman said. An internal investigation at Kobe Steel found 70 cases of data tampering at its Kobelco Research unit. (BBC)
Source: Other (16.10.2017)

China Iron Ore Demand Robust In September So much for all that talk about weak demand for steel commodities from China - especially iron ore and coal. Trade data for September out on Friday showed a record 103 million tonnes of iron ore and a three year high of more than 27 million tonnes of coal were imported last month. Production cuts for steel, power (in some cases), cement, aluminium smelting, iron ore sintering and coke production are underway in the heavy industrial provinces around the north and northeast of China (especially Hebei) and this has hit iron ore and coal prices - until Friday when iron ore prices jumped sharply and back over $US62 a tonne for a small weekly gain. Analysts say there were reasons for the surge in iron ore and coal imports last month - the Golden Week holiday at the start of October meant there was some stockpiling and buyers are chasing higher quality iron ore and coal (especially from Australia) because of falling Chinese production of ore and coal which is lower quality and higher cost. But before anyone jumps for joy we should wait for a month to see if the production cuts see reductions in imports of iron ore and coal in the trade figures for October, and then November. (ShareCafe)
Source: Other (16.10.2017)

Kobe Steel loses industrial standards certification for copper products Embattled Kobe Steel Ltd said a Japanese Industrial Standards (JIS) certificate for some products made at its Hatano plant near Tokyo has been revoked because of data falsification. The move could hurt its business, which has been already impacted as some customers are switching orders to competitors. Kobe Steel had been told by Japan’s industry ministry to disclose the results of its safety checks by around Thursday. Its revelations of widespread tampering in the specifications of its products have sent a chill through global supply chains for cars, trains, airplanes and other equipment. Kobe Steel’s Hatano copper tube plant southwest of Tokyo has been inspected by a certification company to see whether it has complied with the JIS in terms of quality management systems and product specifications. As a result of the revoke, it will be no longer able to sell those products with the JIS label. But they can still be sold without asserting they are JIS-compliant if customers accept it. (Reuters)
Source: Reuters (26.10.2017)

India slaps anti-dumping duty on some stainless steel imports India imposed anti-dumping duty on some cold-rolled flat products of stainless steel from China, the US, South Korea and the European Union, to curb the influx of cheaper imports and help local producers. The duty, which will be in effect until 10 December 2020, exempts certain grades of stainless steel, an official notification said. The government has allowed import of the product as long as the end use of the import is in the same form, it said. Earlier this month, the government imposed an anti-dumping duty on the import of some flat steel products from China and the European Union for five years. Last month, the government imposed an additional 18.95% countervailing duty on some hot-rolled and cold-rolled stainless steel flat products, a first such levy on a steel product. (Livemint)
Source: Other (26.10.2017)

Thyssenkrupp mulls investing in logistics base in Bulgaria Germany-based diversified industrial group Thyssenkrupp is planning to invest in a new logistics centre which will service the region of Southeast Europe, and is looking into several locations in Bulgaria, the Bulgarian economy ministry said on Thursday. The company is currently expanding its facilities in Sofia, the ministry said in a statement, following a meeting between economy minister Aleksandar Manolev with company officials. In the past few years, Thyssenkrupp has invested over 5 million euro ($5.9 million) in its Sofia base, the statement reads. Currently, the company also has facilities in Plovdiv, Ruse and Burgas. It operates in the country through its unit Thyssenkrupp Materials Bulgaria, which focuses on storage and wholesale of steel products. Thyssenkrupp operates in 80 countries worldwide, employing over 156,000 people.
Source: Dnevnik (27.10.2017)

China iron ore hits 4-mth low ahead of winter steel cuts China’s iron ore futures dropped more than 3 percent to a four-month low on Monday and were on track for a second straight monthly drop as concerns grow about waning demand due to Beijing’s winter smog crackdown on steel mills. The most-active iron ore contract for January delivery on the Dalian Commodity Exchange closed 3.3 percent lower at 425 yuan ($63.92) a tonne on Monday, after earlier touching 421 yuan a tonne, the lowest since June 27. Prices are on track for a 5 percent drop in October. “Iron ore demand has come under pressure as steel mills stepped up production cuts,” said analysts from Hongyuan Futures in a note. Last week, the utilisation rate at steel mill blast furnaces across China fell to the lowest level since 2012 at 71.13 percent, and as low as 66.03 percent in the top steelmaking province of Hebei, data from Mysteel consultancy showed. Tangshan, the country’s top steel-making city, was ordered to make deeper cuts over Oct. 24-27 as adverse weather may worsen the smog. (Metal Junction)
Source: Other (31.10.2017)

Rio Tinto sees 400m tonne potential from Aussie iron ore mines Rio Tinto could look to increase output from its iron ore mines in western Australia to 400m tonnes a year, its chief executive Jean-Sebastien Jacques has told its staff. In a memo posted on an internal message board last month, Mr Jacques said the potential of Rio’s Pilbara iron ore business was clear: “it could/should start with a 4 in the medium to long term subject to market conditions.” To put that figure in perspective, Rio expects to export 330m tonnes of the steel-making material this year and has previously talked about increasing output from the Pilbara to 360m tonnes, although it has never set out a precise timeline. The comments are significant because they highlight how major mining companies are starting to think about growth again after years of austerity and aggressive cost cutting. It also shows how the industry, which squandered billions of dollars on over-ambitious projects and deals during the so-called commodities supercycle, is trying to win back the trust of investors. (Metal Junction)
Source: Other (31.10.2017)

Alexander Alexandrov: Soon Bulgarian steel will be on the Asian markets Alexander Alexandrov is CEO of Stomana Industry since mid-May 2017. Until then, he was an administrative director of the steelmaker for nearly a year. Previously, he worked for 15 years at Oiltanking Bulgaria AD, where he was Executive Director and Chief Business Development Manager. He has been Business Development manager for the Balkans and the Black Sea region, and his business experience includes operational manager of Unilever Bulgaria and a logistics manager at Ericsson Telecom Bulgaria OOD. He has worked in the Bulgarian-American Investment Fund. He graduated from the Technical University of Sofia and has obtained a qualification from Oxford Princeton in Fundamentals of Oil Products Trade - Technology, Markets and Economics, as well as a qualification in the senior managers training program of Change International, Germany. Mr. Alexandrov, iron and steel is a heavy industry, should an Iron Man be the head of a steel company? It's compulsory. This harsh production is for strong men. Any of the employees of Stomana Industries can be called Iron Man. I'm also lucky to be part of this team. The dynamics in this industry is huge, there are many transformations, markets are too volatile. In this case, does the industry itself need managers with the qualities of superheroes? Good business is not done by superheroes, it needs slow, rhythmic, consistent actions at any moment. Yes, it is nice to have people with special qualities and skills, but the best thing is the good structure. The English know well how a green meadow is made: you mow and water, mow and water and keep doing it for 100 years. You are at the helm of Stomana Industry for several months now. What footprint has this time left on you? Just days after I headed the business, an extremely serious incident happened, but we managed to solve the crisis relatively quickly. Now Stomana Industry is working again at full speed. You are a person with extensive experience in business development, project management, logistics. What do knowledge and experience make you do at this new position? For the first time in my life I can fully use everything I have learned and practiced. Stomana Industry enables business skills deployed in full scale. The experience gives me an opportunity to assess the direction in which the company develops, in what markets it should be, what its future is. Every moment of the company's recent past now also has a role in what we do. So you are the right person, in the right place. But at the right time? The time is never right. Everyone can be the right person at the right place. Every time there are challenges. The successful combination of the three is when they work together very well in a certain time when the market goes up and then it gives good results. At what point of its development is the global steel industry? It is at a much better stage than two years ago. The crisis is no longer that deep, a better future is coming. Much work has been done in the enterprise before me in order to orient it to new markets and customers, to different types of production. We produce special steels with a higher added value. The market has changed, but our owners Viohalko and Sidenor have done a lot of work, and this gives results. Seven years of investments in modernization of technology and equipment. Has this stage been completed? Even during a collapsed market our owners continued to invest. Investments are not over, this is only a good basis on which to build further. We are currently partnering with the Japanese steel company Daido steel. Together with the technical co-operation that we have with them, we also envisage new investments that will allow us to enter new markets. It will not be impossible to see Bulgarian steel in the Asian markets soon. Given that the EU is taking anti-dumping measures against imports of Chinese steel? Yes, because our quality is competitive and it can also make us look for other markets. What is the Bulgarian market for you? The Bulgarian market is not bad at all. We hold over 60% of the domestic market. Almost 100% of our reinforcing steel is sold in Bulgaria. We are well represented on the entire regional market with our sheet metal. No market is small and no market is uninteresting. If we are good at what we are doing, the markets are waiting for us. Which are your distant markets? About 70% of steel circles go to the Western European markets, as well as half of the sheet metal we export. Who selects the products of Stomana Industry? All leading companies in different sectors where the products are used, as our quality is extremely good. The European Union began its existence as a European Coal and Steel Association. Some say the two industries are at sunset. Is that really the case with steel? The steel was not high-tech product, but it is the basis of everything. The steel demand profile changes. Nowadays, much higher quality and specialized indicators are required by the customer. Steelmaking is defined as the second oldest profession, but what is it in the era of information technology? I have worked in the petroleum business and in telecommunications and today I am extremely interested in what I am doing. Every business has its charm, but there is little difference in the principles and ways of managing high-tech and traditional businesses. How does steelmaking fascinate you? Mostly people who work in the enterprise - exceptional professionals who are highly motivated. Stomana Industry is a structure-defining company for the Bulgarian economy, including the municipality of Pernik. And some curious fact about steel? Each car has at least one part manufactured by Stomana Industry. This is the case for every large infrastructure project and every building in Bulgaria. Stomana Industry has a presence in every home. In the former Lenin Metallurgical Works worked 18,000 people, and today the plant employs less than 1000... With the adjacent productions, the number of employees is about 1800, ie 10 times less. Today steel is being produced in a new way, so much investment has been made. The technologies are new and they guarantee higher quality and better performance. Will one day people disappear from the steel industry? They will decrease, but they will not disappear altogether. Robots may be accompanying, but people are irreplaceable, especially in steelmaking. Are there enough trained specialists to work in the ferrous metallurgy in Bulgaria? As elsewhere in Bulgaria, the shortage of qualified staff is tangible. Over the years, many educational institutions that fed this industry with skilled workers have already been closed down. But we offer an enterprise education system for anyone who wants to work with us. What kind of employer is Stomana Industry? A very good taxpayer with an exclusive social and corporate culture that works entirely in the light. The average salary is above the average for the country by over BGN 400. Are workers satisfied? Our people are relatively well paid, but of course it is human to expect higher. The aim is for wages to grow, with time and productivity. Is it time to attract staff from abroad? Yes unfortunately. This moment is approaching, because trained people are increasingly difficult to find. What would make you attractive to these trained people, if Bulgaria is the country with the lowest income in the EU? We attract workforce from other countries in the region. Here we have growth. Four steel companies were closed in Western Europe in the steel sector last year. /economic.bg
Source: Other (01.11.2017)

Bulgaria's Alcomet 9-mo non-cons net profit falls despite rising revenue Bulgarian aluminium products manufacturer Alcomet said its non-consolidated net profit fell to BGN 14 million in the first nine months of 2017, from BGN 21.3 million in the year-ago period. The company’s operating revenue rose to BGN 271.5 million in the January-September period from BGN 243.5 million in the comparable period of last year, Alcomet said in a bourse filing. Operating expenses increased to BGN 255.9 million in the period under review from BGN 219.8 million the year ago. Alcomet’s operating profit fell to BGN 15.6 million in the first nine months of the year from BGN 23.7 million a year earlier.
Source: Capital (03.11.2017)

Bulgarian metallurgy congratulated itself on the growth of production and wages With investments of over BGN 4.2 billion over the past 15 years, the Bulgarian metallurgical industry has produced output of nearly BGN 6.8 billion in 2016, which is 13.6 per cent of the manufacturing industry. Approximately 13,000 metallurgists work in the industry, producing 5% of the country's gross domestic product. The data was provided by Anton Petrov, Chairman of the Bulgarian Association of Metallurgical Industry (BAMI), on the occasion of the professional holiday. "The figures do not whisper, they cry out, they show the success of the Bulgarian metallurgy," Anton Petrov noted. "Metallurgy is one of the pillars of the Bulgarian economy," said Georgios Mentzelopoulos, executive director of Etem, part of the Viohalko Group, which includes Stomana Industry S.A. and Sofia Med. The Sofia-based company of one of the largest metal production groups in Europe hosted the Metallurgy Day on November 5, which this year was celebrated for three days. Metallurgy was one of the pride of socialist Bulgaria, which collapsed after the changes, only to revive again after 2000, said Nikolay Valkanov, chairman of the Bulgarian Chamber of Mining and Geology. The Deputy Prime Minister Tomislav Donchev went back in time to antiquity. "Today, metallurgy is industry, business and science... It is a business in which machines are important, presses for cold and hot processing, but the most important are the people," said Donchev and wished the metallurgists "to be healthy as steel" . "The metallurgical industry in recent years has made a qualitative leap in its development," said Deputy Minister of Economy Lachezar Borisov. Production and wage growth Growth in the production of ferrous and non-ferrous metals also leads to an increase in the average wage in the industry, which is BGN 1305. This is about three times higher than the minimum wage for the country, representatives of the sector, which also suffers from a shortage of staff, said. The highest wages are paid to the workers in non-ferrous metallurgy - BGN 1780 average salary, followed by the ferrous with BGN 1260, while for the casting of metals it is 827 BGN - lower than the average salary for the country, according to BAMI data. The bulk of the production is for exports, over BGN 5 billion last year, which is 11.2 per cent of the total export of the country. More than 1.3 million tons of ferrous metals and about 600 thousand tons of non-ferrous metals were exported. That's a record, Anton Petrov said. He pointed out that metallurgy creates two and a half times higher value added per employee than the average for the processing industry and non-ferrous metallurgy five times higher. The success of metallurgy has a multiplier effect on other industries - mining, energy, automotive, construction, transport and logistics. The Bulgarian mining industry provides half of the needs of non-ferrous metallurgy. That means there is an opportunity for the mining industry to grow further, Petrov said. He added that a quarter of industrial energy consumption was due to metallurgy. The sector also provides 25-26% of the freight transport, Petrov pointed out. "We need the basis - a business climate that does not cripple us but gives us wings," Petrov said. "Bulgaria is in the top third in Europe as a share of the industry in GDP," said Vasil Velev, chairman of the Bulgarian Industrial Capital Association. Great in the industry Bulgaria is among the leading producers of cathode and anode copper in the world, and last year Aurubis produced 297 thousand tons. This is the company that has invested the most - about BGN 1.2 billion in production in recent years. The largest is the production of rolled ferrous metals - 921 thousand tons. The main producers are Stomana Industry and Promet Steel, who have invested BGN 500 mln and BGN 50 mln respectively in their production capacities. The produced lead, block and alloys amounted to 101 thousand tons last year. The main producers are KCM Plovdiv, which invested BGN 800 million, Monbat Recycling and Elbat. Rolled aluminum is 88 thousand tons, and the main manufacturers are Alcomet and Etem. Etem is also a part of the Greek Vaihalko group. The group has been operating in Bulgaria for 18 years and is planning new investments, said Georgios Mentzelopoulos, CEO of Etem Bulgaria. Up to now, Vaihalko has invested more than BGN 200 mln in Bulgaria. New halls have been built in the Sofia factories, which employ around 1,300 people. New machines have been purchased, a new aluminum extrusion line has been launched, warehouses, laboratories and other facilities have been built. Etem produces details for all major brands - Audi, Rolls-Royce, BMW, Jaguar, Land Rover and some Volkswagen models. The company makes "crash box" for cars, which is a high-tech detail made by only one, two companies in Europe, said Lyubomir Borislavov from Automotive Cluster Bulgaria. Etem exports architectural systems to Europe, USA, Canada, Asia, Africa and the Arab countries and plans to continue investing in a new production building in Bulgaria.
Source: mediapool.bg (08.11.2017)

Tata Steel announces ?30m Port Talbot steelworks investment Tata is to invest ?30m in its Port Talbot steelworks, the company has announced. The Indian firm said it would install a 500-tonne steelmaking vessel at the plant and make other upgrades to prepare it for the future. The equipment will help it produce advanced forms of steel used in electric and hybrid cars as well as the building industry, Tata said. It follows recent calls for Welsh jobs to be safeguarded at the plant. Announcing the investment, part of a series of planned investments in its UK business, the company said it would also replace cranes at the plant and install emission-reducing systems. Port Talbot's project manager Dave Murray said the new steelmaking vessel was needed. "We have two steelmaking vessels and they run 24/7 at temperatures of up to 1,700C, apart from short planned maintenance periods. Despite this they last for around 20 years each and replacing them is an important part of ensuring reliable operations," he said. (BBC)
Source: Other (08.11.2017)

KCM railroad to go underground The railway line that serves KCM will be brought underground in the area of the crossroad of Okolovrastno Shose and the Plovdiv - Asenovgrad road. This option was discussed by the experts at a meeting, organized by the regional governor Zdravko Dimitrov. The solution is proposed by the specialist of the National Railway Infrastructure Company, and how it will be realized will become clear after designing. The reason for the relocation of the railway line is the construction of a circular junction. The new roadway closes near the railroad and large traffic jams will occur if the traffic is regulated by a barrier, explained the regional administration architect Valentin Marinov. There are two options: to get the railroad line up or down the ground, which will cost cheaper, and it will be safer. The new Plovdiv - Asenovgrad route will be asphalted until the end of November.
Source: Maritsa (09.11.2017)

Etem Bulgaria completed an investment project for BGN 60 million The metal company Etem Bulgaria, which produces aluminum profiles, has finished its investment project with a total value of BGN 60 million, which was started in 2012. In result, the Sofia-based company is now a ratified producer of articles for the automotive industry. The company is a subcontractor for a number of automotive companies and their products are used in the brands Audi, Jaguar, Rolls-Royse, BMW, Land Rover and some of the Volkswagen models. The most significant of the investments is the new line for direct extrusion of aluminum. Meanwhile, Etem continues to focus on its traditional business, which is related to the production of architectural profiles. The company is one of the few in Europe with a declaration for eco products and currently employs about 600 people staff. Etem increased its production volume last year by 19%, although revenues grew more modestly due to lower metal prices. This year, the company will continue to rely on products with high added value, and the expectations are that sales for the automotive industry will grow. According to data of the Bulgarian Metallurgical Industry Association last year alone, the companies in the sector have invested a total of BGN 120 million. Since their launch, the largest investments have been made by the companies Aurubis Bulgaria (BGN 1.2 billion), KCM (BGN 800 million), Stomana Industry (BGN 500 million), Sofia Med (BGN 400 million) and Etem Bulgaria (BGN 200 million). The total amount of the investments in the branch is estimated at BGN 4.2 billion. At the moment, the Bulgarian non-ferrous metallurgy occupies the 9th place in the value of the manufactured products among the 28 member states of the European Union and the total production produced by all the companies in the metallurgical sector is estimated at BGN 6.8 billion.
Source: Capital (09.11.2017)

EU to review steel giant ArcelorMittal's plan to buy Ilva The European Union's anti-trust watchdog is launching a probe of steel giant ArcelorMittal's planned buyout of Italy's Ilva amid concern the deal could stifle competition and drive up prices. The EU Commission said that it fears "the merger may reduce competition for a number of flat carbon steel products." The commission polices market competition in Europe. It said ArcelorMittal, which is headquartered in Luxembourg, would boost its market leadership by picking up Ilva's steel plant in Taranto, Italy, the largest of its kind in Europe. The commission worries that customers in southern Europe could face higher prices, especially for hot rolled, cold rolled and galvanized flat carbon steel products. EU Competition Commissioner Margrethe Vestager promised an in-depth review. She says: "European industries need access to steel at competitive prices." (AP)
Source: Other (09.11.2017)

Rio Tinto soon to go coal free Just five years ago, it would have been almost unthinkable that one of the world's biggest mining companies would not dig any coal. It's now likely to become a reality. Rio Tinto Group, the world's second-largest miner, has been steadily backtracking from coal to focus on better assets. It's now looking for buyers for its remaining coal mines in Australia, and a sale will mark a complete exit from the fuel. Rio's potential coal-free future is in stark contrast with many of its rivals. Glencore, the world's top coal shipper, this year increased its exposure by agreeing to pay $US1.1 billion plus royalties for a large stake in Australian assets sold by Rio. The fuel, which generates about 40 per cent of the world's electricity, is one of BHP Billiton's main strategies, while Anglo American has pulled back on plans to sell out of the commodity. While many miners are bullish on coal, the world's dirtiest fuel has become a flashpoint for a growing movement of investors calling for miners to cut their exposure. (Sydney Morning Herald)
Source: Other (10.11.2017)

ArcelorMittal upbeat on global steel market as it lifts earnings ArcelorMittal, the world’s largest steelmaker, notched up a slight increase in third-quarter earnings as it offered an optimistic assessment on the global steel market. The Luxembourg-based company, which also owns iron ore and coal mines, posted a 1.4 per cent year-on-year rise in profits to $1.9bn in the three months to the end of September, as measured by earnings before interest, tax, depreciation and amortisation. Sales were 21.5 per cent higher at $17.6bn compared with the same period a year before. Lakshmi Mittal, chief executive, said: “Favourable market conditions have supported another solid quarterly performance, with ebitda for the first nine months considerably improved year on year. “Operating conditions continue to improve, with key indicators?.?.?.?implying a positive outlook for 2018.” ArcelorMittal’s steady performance during the period underlines the recovery taking hold in the global steel sector, following a sharp collapse in prices for the grey metal two years ago triggered by oversupply that hit producers hard in many countries. (FT)
Source: Other (13.11.2017)

Dundee Precious Metals Chelopech registers nearly 30% growth in revenues Dundee Precious Metals Chelopech, which operates the copper-gold deposit near the city, has increased its revenue by nearly 30% in the first nine months of the year. The other Bulgarian project of the Canadian company - the construction of a new mining and processing plant at the Ada Tepe deposit near Krumovgrad, is underway, the first quantities of concentrate will be produced at the end of next year. An overview of capital costs shows that the investment will be between USD 10 and USD 16 million. Revenues of Dundee Precious Metals Chelopech for the first nine months of the year increased by more than 28% to USD 148.9 million.
Source: Capital (15.11.2017)

EU finds Chinese steel sent via Vietnam evaded tariffs The European Union’s anti-fraud office (OLAF) said it has found Chinese steel was shipped through Vietnam to evade the bloc’s tariffs. Steelmakers are now awaiting a similar but more widespread U.S. circumvention investigation involving China and Vietnam. Trade tensions between Beijing and Western nations continue to simmer, with the United States taking a tough line even though China, producer of half the world’s steel, has cut excess capacity by a quarter and reined in its exports of the alloy. OLAF said roughly 8.2 million euros of anti-dumping duties were evaded when organic coated steel from China was shipped through Vietnam and given Vietnamese certificates of origin. The amount involved is small and the case was concluded at the end of 2016, but market participants say Vietnam remains a hub not for fraud, but for Chinese trade tariff circumvention involving large tonnages of steel. Financial recommendations were sent to the customs authorities of Belgium, Greece, Slovenia, Italy, Poland, Portugal, Lithuania, Romania and Sweden for the recovery of roughly 8.2 million euros of antidumping and countervailing duties. (Reuters)
Source: Reuters (15.11.2017)

German steel for Ruhr and Rhine push barges German steel giant thyssenKrupp has received a follow-up order for 2,500 tons of rolled steel from inland waterways operator Neue Ruhrorter Schiffswerft (NRS). The steel will be used to build push barges that are used to transport ores and commodities along the Ruhr, Rhine and other rivers. The state of North Rhine-Westphalia accounts for almost one half of the goods shipped via inland waterways in Germany. Last year, around 127Mt of cargo was transported by push barge. ThyssenKrupp's rolled steel will be used to build five push barges operated by NRS and will be cut to size by thyssenkrupp Schulte, a subsidiary of thyssenkrupp materials services. It will be cut, primed and modified to meet customer requirements, claims thyssenkrupp. “We will make sure that our partners obtain the finest materials for their needs and just in time,” said Dirk Claessens of thyssenkrupp Schulte. He added that contracts are very important for thyssenkrupp and are a great example of intra-group co-operation. (Steel Times International)
Source: Other (16.11.2017)

State regulators seek penalties against U.S. Steel for Clean Water Act violations at Portage plant State environmental regulators now say they are seeking penalties against U.S. Steel following April’s illegal discharge of hexavalent chromium at its Midwest plant and a more recent, second illegal wastewater discharge in late October for which the company sought “confidential treatment.” The Indiana Department of Environmental Management also told The Times last week the agency and its federal partners are “currently negotiating an agreement in principle with U.S. Steel … to be embodied in a federal consent decree that will address violations of the Clean Water Act.” The news of potential penalties comes just days after the University of Chicago’s Abrams Environmental Law Clinic put the Pittsburgh-based company on notice of its intent to sue on behalf of the nonprofit Surfrider Foundation because of repeated violations of the Clean Water Act. The threat of a legal challenge centers on the Portage facility’s permit to discharge wastewater into the Burns Waterway, a small industrial ditch which empties directly into Lake Michigan not far from a recreational spot used by area surfers. (Northwest Indiana)
Source: Other (20.11.2017)

Tata Steel to leverage emerging technology to boost performance Tata Steel is looking to tap emerging technologies to improve its performance, a top company official said. “Technology is evolving and there is always scope to leverage it better to enhance performance”, said T V Narendran, managing director & chief executive officer, Tata Steel during his visit to Kalinganagar, the site of the steel company’s greenfield steel complex in Odisha. Narendran’s visit to Kalinganagar coincided with the second anniversary of the dedication of the steel project. To mark the second anniversary, an exhibition was organised on the theme- ‘Tata Steel Kalinganagar- Taking pride with every stride’. The exhibition sought to depict various milestones and operational excellence attained by operating departments of the plant in the last one year. Anand Sen, president (total quality management & steel business), Tata Steel said, “Customers’ feedback has been overwhelmingly positive about the products being rolled out from Kalinganagar. Tata Steel Kalinganagar has positive effect on product mix of Tata Steel.’’ Tata Steel Kalinganagar has adopted state-of-the-art technologies to ensure higher productivity with minimal impact on environment. (Metal Junction)
Source: Other (20.11.2017)

Dimitar Tsotsorkov elected as Chairman of the Supervisory Board of Assarel-Medet AD Dimitar Tsotsorkov was elected Chairman of the Supervisory Board of Assarel-Medet AD at a meeting held on 20 November, the company said. So far, he was chairman of the company's board of directors since 2014 when a two-tier management system was introduced. He has been a member of the company since 2001 and has consistently worked as a sales and hedge expert, head of department and director of corporate development. At present Dimitar Tsotsorkov is also the executive director of the subsidiary Assarel Invest EAD. At its meeting, the Supervisory Board also decided to fill the panel of the Board of Directors of the company. Mr. Delcho Nikolov was elected as its chairman, who also retained his position as Executive Director of Assarel-Medet AD.
Source: 24 chasa (22.11.2017)

For 5 years, Gorubso has invested BGN 200 million Over the past five years - since 2012, investments in Gorubso have exceeded BGN 200 million, announced the owner of the ore mining company Nikolay Valkanov. Only for this year the investment in Madan is BGN 15 million, in Zlatograd it is BGN 10 million and for next year in the two mines are planned investments for about BGN 10 million, Valkanov said. In the Rudozem-based enrichment factory, the owners of Minstroy Holding, KCM and the Executive Director of Gorubso-Madan cut the ribbon of a new crushing hull. The investment is worth BGN 2.5 mln. At the end of this month, the same crushing line will be launched in Zlatograd. "We are refurbishing the entire drilling production, going through mechanized drilling with carriages, trucking. In general, the underground turns into a metro. We change everything. Investments are great, but productivity, pay, and safety is the most important thing for me. And working conditions are now quite different. There have been no miners swinging picks and shoveling by hand for a long time," said the owner of the plant. He reported that Madan, Zlatograd and Laki have reached 6000 tons of concentrate per month.
Source: actualno.com (22.11.2017)

Nucor to Build New Steel Mill in Missouri Steel producer Nucor is building a steel mill in the mid-Missouri city of Sedalia. Missouri Gov. Eric Greitens on Tuesday announced the company is investing at least $250 million on the micro-mill. Greitens' administration says more than 250 new jobs will be created once it's built. Economic Development Department spokeswoman Maggie Kost said the company could get as much as $27.3 million in economic incentives over the next 15 years. She says it's likely the company would not have come to Missouri without a law passed this summer that allows steel mills and other major electricity users to negotiate lower electricity rates for longer contracts. Supporters of the change wanted to bring jobs to southeastern Missouri, where a Noranda aluminum smelter's closure last year eliminated more than 900 jobs. (AP)
Source: Other (22.11.2017)

Japan's JFE to bid for Bhushan Steel with India's JSW as partner Japan’s JFE Holdings Inc and India’s JSW Steel are lining up a joint bid with a private equity firm for the assets of insolvent Bhushan Steel. Under the plans, JFE would set up a special purpose vehicle with the two partners to manage the assets. JFE would hold a majority stake in the vehicle, while JSW Steel would operate Bhushan Steel’s plants. JFE already owns a 15 per cent stake in JSW. The bid, if successful, will give JFE a bigger foothold in the fast-growing Indian market where it has had a presence since 2010 in partnership with JSW Steel. It will also help JSW Steel expand in northern and eastern India without overstretching its balance sheet. With unpaid debt of nearly 450 billion rupees ($6.9 billion), Bhushan Steel was pushed into bankruptcy proceedings a few months ago after India’s central bank steered 12 of the country’s biggest loan defaulters to insolvency proceedings. (Economic Times)
Source: Other (23.11.2017)

India's crude steel output jumps 5% to 8.6 million tonnes in Oct 2017 : Worldsteel India's crude steel output jumps 5% to 8.6 million tonnes in Oct 2017 : Worldsteel India's crude steel production rose 5.3 percent to reach 8.629 million tonnes (MT) in October 2017, global steel body Worldsteel said in a report. The country had produced 8.197 million tonnes of steel during the same month last year, the World Steel Association (worldsteel) said. According to the report, India's steel output during January-October 2017 was 6.4 percent higher at 84.123 MT, as against 79.073 MT during the corresponding period of 2016. Japan, the second largest crude steel producing nation, reported a 1 percent contraction in output at 8.971 MT in October 2017, compared to 9.060 MT during the same month last year. During the first ten months of 2017 to Japan's steel output dipped 0.2 percent to 87.239 MT from 87.442 MT in the year-ago period. India is already the world leader in stainless steel production and the third largest crude steel producer. (Metal Junktion)
Source: Other (27.11.2017)

MBM Metalwork expanded its production in Rousse The metal processing company MBM Metalwork has expanded its production in Rousse with an investment of over EUR 1 million this year. Part of the project has been funded with European funds, but additional funds have been invested separately. The company, part of the Italian industrial group Meroni, has built and equipped new halls with an area of 3000 sq. m., resulting in additional 30 job openings. Thus, the company's staff practically grew by over 60%, as last year 48 people were employed. MBM Metalwork works in two main directions - production of metal parts and assemblies for various machines and equipment and production of tooling. The recently completed investment is another expansion of the production in Rousse. Last year, the company started a project for improvement of production capacity under the Operational Program "Innovation and Competitiveness" worth BGN 1.2 million, of which BGN 743 thousand were provided as a subsidy and the rest was its own co-financing. The company's balance sheet shows that its fixed assets have grown slowly in recent years, rising sharply in 2016 - from just under BGN 3 million to BGN 4.3 million. Over 97% of the output is intended for export mainly in Italy, France and Germany. Over the years, the Bulgarian company has been gradually increasing its sales, which reach nearly BGN 4 million in 2016.
Source: Capital (29.11.2017)

Shoring up of Spanish steel giant Celsa will secure 600 jobs in Wales Hundreds of Welsh steel jobs have been safeguarded after the UK’s second-largest producer agreed a multi-billion debt refinancing. Spanish steel giant Celsa, which employs about 600 workers making steel at its Cardiff base and has a further 1,400 UK staff, has agreed a deal that will almost halve its debt load, easing pressure on the company’s finances. Celsa has agreed a deal with a consortium of Spanish lenders that will cut its debt pile from EUR 2.67 bln to EUR 1.43 bln over five years. The remaining EUR 1.24 bln will be taken off the company’s balance sheet until it matures in 2023, giving Celsa the breathing space it needs to continue. There had been speculation this summer that the debt mountain would force Celsa into a painful round of cost cuts, job losses and disposals as lenders piled on the pressure. Celsa had avoided reductions in staff and the sale or closure of sites that many of Britain’s steel makers were forced into two years ago as the sector was plunged into crisis by a combination of a flood of mainly Chinese imports, rising raw material costs and high energy prices. (Telegraph)
Source: Other (29.11.2017)

Global steel agreement to target Chinese policies Japan, the U.S. and Europe will push China for more action to combat the global steel glut when ministers from 33 countries and territories meet Thursday in Berlin to forge an agreement on the oversupply issue. Representatives from China, India, South Africa, Argentina and members of the Organization for Economic Cooperation and Development intend to devise the nonbinding agreement at the Global Forum on Steel Excess Capacity. The agreement likely will have governments report on domestic production capacity and their operational levels two to four times yearly and ensure that corrective measures are taken against businesses with a clear excess in output. It also will urge governments to discontinue aid for domestic steelmakers, helping weed out businesses unable to survive on their own. Following the deal, working-level officials plan to meet in March to examine progress. The goal is to nudge China into modifying its policies. The country, blamed by many others for the global glut, has provided subsidies -- mainly through local governments -- to help compensate for losses at steelmakers. (Metal Junction)
Source: Other (30.11.2017)

NLMK Group breaks the ice Russian steelmaker NLMK Group has shipped transformer (or grain oriented steel) to Ruselprom, a leading electric machinery manufacturer in Russia. The steel is being used to make energy equipment for the Ural, which is claimed to be the most powerful nuclear icebreaker in the world. Steel for the stators of two main AC generators (36MW each) on the Ural was produced at NLMK’s Lipetsk site. An entire batch of 90 tonnes of steel has already been shipped to to Ruselprom. NLMK has plenty of experience where icebreakers are concerned. The company recently supplied grain oriented steel to make similar equipment for the Siber (Siberia) another nuclear-powered icebreaker. Ruselprom, in conjunction with Krylov State Research Centre, supplies electric machinery for the construction of all Russian icebreakers. In the past these vessels were equipped predominantly with imported electrical systems. All this is good news for Ilya Gushchin, NLMK Group’s vice president (sales). He said that Ruselprom and NLMK shared a long history of ‘successful co-operation’ spanning two decades. (Steel Times International)
Source: Other (01.12.2017)

U. S. Steel Issues Statement on Department of Commerce Circumvention Ruling United States Steel Corporation issued the following statement in response to the Department of Commerce's preliminary ruling on circumvention petitions filed by American steel producers in September 2016. The preliminary found that imports of Chinese steel that is finished in Vietnam are covered by U.S. antidumping and countervailing duty orders on imports from China. As a result of DOC’s preliminary decision, U.S. importers of cold-rolled and galvanized steel from Vietnam must make cash deposits equal to the applicable duties. DOC’s final decision could be as early as February 2018. “The Commerce Department’s finding of circumvention represents a critical step to shutting down one of the many paths used to flood the U.S. with dumped and subsidized steel. This decision presents an encouraging sign for the steel industry and should put other countries and companies on notice that their cheating will no longer be tolerated. We urge Secretary Ross and President Trump to continue to aggressively crack down on unfairly traded steel imports, including immediate and broad action in the Section 232 investigation on steel imports and national security.” (Globe Newswire)
Source: Other (07.12.2017)

China: Steel consumption to rise 7.7% this year The nation’s steel consumption is expected to rise 7.7 percent to 725 million metric tons this year amid an improving economy and better performance of major steel consumers, an industry research and planning institute said on Monday. The country’s steel demand will grow by 0.7 percent to 730 million tons in 2018, said a report from the China Metallurgical Industry Planning and Research Institute. China’s crude steel output will increase 3 percent year-on-year to 832 million tons in 2017, and by a further 0.7 percent to 838 million tons next year. Iron ore demand in the world’s top buyer is expected to rise 1.3 percent to 1.122 billion tons in 2017 from last year and drop 0.2 percent to 1.12 billion tons in 2018. Major steel consumers including real estate construction, machinery, automobile, energy and shipbuilding will be the main contributors to the country’s rising steel demand next year. (Metal Junktion)
Source: Other (07.12.2017)

SA stainless steel industry worth $3bn, 100 000 jobs The South African stainless steel industry is “very important” in employing people and growing the economy through exports and the local manufacturing of products, says South African Stainless Steel Development Association CEO John Tarboton. Tarboton highlighted that the South African stainless steel industry had been through good and bad times, primarily affected by global market performance. “There was good South African production [of stainless steel] in 1980s, but then South Africa went into recession and [stainless steel] consumption dropped [as a result].” After the 1994 democratic elections, he said local production “picked up nicely”, before slumping again in 1996. Production started to expand thereafter before crashing again with the global financial recession in 2008. The local stainless steel industry recovered once more, reaching a peak of about 200 000 t/y in 2014, noted Tarboton. The use of stainless steel in South Africa spans six sectors: the automotive market – with a stake of 28%, of which a large percentage are stainless steel automotive products exported to Europe – the industrial (18%), transport (16%), mining (15%) and manufacturing (13%) sectors, as well as railway applications (10%). (Mining Weekly)
Source: Other (08.12.2017)

ArcelorMittal, SAIL Steel JV to Come Up in Andhra The much-awaited joint venture between ArcelorMittal and Steel Authority of India (SAIL) to make high-end steel for the automobile industry, with about INR 15,000 crore of investment, will come up in Andhra Pradesh, said Union steel minister Chaudhary Birender Singh. While Gujarat was also considered for this project, the government favoured Andhra Pradesh due to the advantages of east coast, he said, adding that “the JV is yet to be signed” and could happen in the next few days. “I can say that 99% of the formalities are already complete.” Singh, who was in Hyderabad on Friday to attend the diamond jubilee celebration of India’s largest iron-ore producer NMDC, spoke to journalists on the initiatives of the government to achieve a targeted steel production capacity of 300 million tonnes by 2031. He said that India was poised to emerge as the world’s second-largest steel producer by month-end from the third position now, surpassing Japan. (Economic Times)
Source: Other (11.12.2017)

Metals: Tripling of sales A strong year with rising turnover and more workers. This can be used as description of the the metalworking enterprises in 2016. So far, the most dynamic enterprise in the sector (Chimtech) grew by 136%, in the past year the top four companies almost tripled their sales, and almost all the top 20 companies increased their staff. A large number of companies produce metal structures and their success is a direct result of the strengthening of construction last year. There are also those who make components and other metal products and which depend on many other sectors. Among the clients of the companies in the branch are different industrial and commercial enterprises, which is an indicator that the growth is part of the general trend for the development of the economy. Working for the big ones Metalstroy Burgas, which designs, builds and installs steel structures for warehouses, shops, production halls, silos for agricultural production, sports facilities, etc., has the biggest growth in turnover last year. Because it performs orders according to individual customer requirements, the list of its sites is quite diverse. "We work with many customers - OMV and Eko gas stations, the producer of panels Kronospan, Lukoil and so on, and our orders are growing because we are correct," said Petko Velikov, manager and owner of the company. The company has 8,000 sq. m production plant with machines, cranes and other equipment, and its staff varies according to the orders. Last year, workers increased to 55 people. With similar growth and staff is Alumina Trimex from the village of Duben, Karlovo. The plant is engaged in the production of radiators and injection molding. The revival of construction is probably close to the three times higher sales of the third most dynamic company, the skeleton-maker and formworker Hramar. The company was not found for comment. More and bigger orders Plovdiv's sole trader Veselin Zapryanov, who is engaged in cold wire drawing, is better off with the increased demands. "We do not have new customers, but we have more orders," he said, adding: "We are working with the largest companies in Bulgaria – Metalsnab, Hus, the railways and retail. The bulk of the company's revenue for 2016 comes from the sale of galvanized soft and hard wire, the number of workers almost doubled to 132. A reference in the Commercial Register shows that since August of this year Veselin Zapryanov has already worked as a sole-owned limited liability company. The double growth of revenues last year rates Montage Building Constructions fifth among the metalworking companies and ranks among the largest small and medium-sized enterprises in the sector with sales of BGN 12.3 million. The Kazichene-based plant produces metal and prefabricated reinforced concrete structures for industrial, energy and other objects. The company has fulfilled the orders for the refinery in Burgas, Kozloduy NPP, the TPPs in the Maritsa basin, the copper company Aurubis Bulgaria, as well as for shops and sports halls. Also works on sites in Belgium and England. "We did not enter new markets last year, but we had bigger orders from our customers," explained Mariana Yordanova, Head of Finance. It was reported that increased working hours led to a cost increase of over 130%, which is also due to higher metal prices. The main owners of the enterprise are Roslin Partners Bulgaria and V-Invest Bulgaria (35%), individuals keep the remaining shares. Growing components With a gain of more than two thirds, in sixth place we find Garant from Byala Slatina. The company produces separate components such as brake and hydraulic products, spare parts and warehousing equipment, and its main customers are machine-building companies. Its better results last year are due to the increased volumes of orders. "Our growth also comes from the investments we make in machinery and equipment for which we rely entirely on our own funds, and we do not use bank loans," said Petar Petrov, Executive Director. In his words, the company has been implementing projects with European funds during the previous programming period, but has not applied for the last two years. "If next year a modernization procedure is to be opened, we are likely to participate," added Petrov. Also components, but for hunting and airguns and sports pistols, produces the tenth company in the rankings - Gabinvest. The Gabrovo-based enterprise is part of the German L&O Holding, which also includes Blaser, Sauer & Sohn, Mauser and SIG SAUER. For 2016, the company accounted for over 55% revenue growth to BGN 11.2 million, while workers increased by 20 people. This is the result of the expansion of production after the company opened a new workshop for metal components for airguns in the autumn of 2015. It is situated in rented premises of a former spinning mill and the investment in the project was BGN 4 mln. Currently, the company is building an entirely new green plant in the industrial zone of Gabrovo, for which it bought 47 decares of land. The company will have 8,000 sq m of built-up area and the investment is estimated at BGN 8 mln. Expectations are with the opening the number of workers to increase by another 50 people. The company plans to double the production area in 2021. Mobile is easier Private and government orders in the country and abroad are behind the 65%-increase in sales of Sofia's Top House. In its base at the entrance of Novi Iskar, which is located on about 20 decares, the company produces different types of containers, movable houses, mobile offices, kiosks and more. It has, for example, made all pavilions of the SDI insurance broker, which can be seen in front of the big retail chains. "We continue to work with them because they have a policy to increase their sites," said Krassimir Genkov from Top House. In his words, companies often prefer movable objects, as they are under relieved control and do not require special permits such as the permanent sites. One of the key markets of the company is Germany, where for six years there are partners who are engaged in the sale and lease of mobile offices and other sites. For example, the company supplies kiosks for Oktoberfest. It also manufactures refrigerated test cases for cars for a major European manufacturer. Last year the company implemented several large municipal contracts for the delivery of relocating houses for refugees in Germany. In Bulgaria, it also supplies Civil Protection containers for use in disasters and accidents. For two years the company has an office and a showroom in Austria, and for one year in London. There are plans for new markets as well. "We want to target the nearby countries, such as Romania," Genkov said. Good predictions For 2017, most companies in the sector are optimistic. The forecasts of Metalstroy Burgas are strong again this year, and probably the next. "Our program is 100% busy until March next year," says Petko Velikov. The growth trend is also observed in Montage Building Constructions. "We expect an increase in volumes by about 50% in 2016," said Mariana Yordanova. Garant also plans to keep the sales flat. "The volume will be the same as last year, but there will be a slight increase in profit," Petar Petrov said. For 2016, the company's profit is BGN 595 thousand. Active construction and economic revival in general are a good prerequisite for this. Investments that some of the companies do in machines and expansion of production will make growth possible.
Source: Capital (13.12.2017)

China steel futures drop on demand concerns Chinese steel futures swung to losses on Tuesday on concerns that steel demand in the world’s top producer and consumer will seasonally slow down as the year-end nears. The most active rebar on the Shanghai Futures Exchange fell 0.84 percent to 3,884 yuan ($586.68) a tonne by close. China’s government has vowed to clear its air, ordering 28 cities to curb industrial production, prompting a shortage of supplies in some steel products including rebar for construction use. But steel demand is expected to decline seasonally in late December as cold weather hits construction, offsetting upward momentum in prices driven by the supply shortages. “Some investors are bullish on low inventories and mills’ output cut, while some are cautious, betting demand will wane as cold winter gradually comes,” said an analyst with a trading firm in Hangzhou. China’s top steelmaking province of Hebei issued its second-highest air pollution alert on Tuesday, with 10 industrial cities carrying out emergency anti-pollution measures including further cuts at steel mills and coke plants. (Metal Junction)
Source: Other (13.12.2017)

Nearly BGN 74 million of revenue have been generated from concession activity under the Mineral Resources Act in 2015. This is recorded in a report on concession activities during the year adopted by the Council of Ministers. The budgets of the municipalities in whose territory the localities are located have been transferred to BGN 28.4 million compared to BGN 25.1 million in 2014, which is 13% more. The largest share of revenues (18.64%) is generated by Dundee Precious Metals Chelopech EAD, followed by Elatzite Med AD (16.27%), Assarel Medet AD (7.71%), Oil and Gas Exploration and Production AD (3.15%), Petroceltic OOD (2.4%) and others. As of 31 December 2015, 496 concessions for mining of underground natural resources are in operation in Bulgaria: 19 - for mineral resources, 72 for industrial minerals, 17 for oil and natural gas, 18 for solid fuels and 370 for construction and stone-lining materials.
Source: Capital (14.12.2017)

The Pirdop-based copper producer Aurubis Bulgaria has made a profit of over 345 million leva which is record-setting for this country. No local company has seen anything close to this figure in the past ten years. If we leave aside the banks, which have had similar profits, the only company to have come close to this figure is telecoms operator Mobiltel with 325 million in 2008. The Pirdop factory is the second largest company in Bulgaria with revenue of over 4 billion leva and is also the biggest exporter. The said figure is the profit for the financial year ending in September 2017, as reported by the German owner Aurubis (according to the international accounting standards) but it gives an idea of the profit that can be expected for the entire 2017.
Source: Capital (14.12.2017)

Vietnam steel industry decries new US duties The Vietnam Steel Association (VSA) will coordinate with the Ministry of Industry and Trade to protect the legitimate rights and interests of local steelmakers who were recently accused of tax evasion by the US Department of Commerce (DOC). The decision, made by the DOC last week, would involve the imposition of anti-dumping measures and anti-subsidy rates on corrosion-resistant (CORE) and cold-rolled steel from Vietnam. In 2016, US steelmakers succeeded in persuading the DOC to impose anti-dumping (AD) and countervail (CV) duties on Chinese steel, which meant cold-rolled steel from China would be subject to 265.79 percent AD and 256.44 percent CV duties when exported to the US. AD and CV duties of 199.46 percent and 39.05 percent, respectively, were applied to corrosion-resistant steel from China. DOC argued that Chinese products are being dumped in third-party countries, such as Vietnam, to circumvent these duties, leading to last week’s decision. Although the product was only processed in Vietnam, the commerce department agreed with the claims of American producers that as much as 90 per cent of the product’s value originated from China. (VNA)
Source: Other (15.12.2017)

Firms' steel pensions advice investigated by regulator About 17 companies are being investigated over their handling of pensions advice to steelworkers, the Financial Conduct Authority has said. Current and former Tata employees met representatives of the regulator in Port Talbot, claiming they had been given poor advice about moving from the British Steel Pension Scheme. Concerns were also raised about financial advisers and introducers. The FCA said it would take action if evidence of wrongdoing was found. Tata's ?15bn British Steel Pension Scheme was seen as a significant barrier to a potential merger with German steel producer ThyssenKrupp. But the two have agreed to take the first steps towards a deal. About 130,000 workers and former workers across the UK with British Steel scheme pensions have until Friday 22 December to make a decision on future arrangements. Options include, staying with the current scheme - which will fall into the Pension Protection Fund - moving to a new British Steel Pension Scheme, or transferring to a personal one. (BBC)
Source: Other (15.12.2017)

Lenders propose new plan to fast-track Essar Steel resolution Lenders to Essar Steel are reducing the time taken to resolve the biggest default in the industry by mandating that whoever is the bidder must have at least Rs 500 crore in cash balance, or provide a bank guarantee for a similar amount, and simultaneously provide a resolution plan with the stamp of approval from the resolution professional. In what the lenders term as 'single stage' process to expedite the resolution, any interested bidder has to meet both the conditions to be considered by the bankers, said two senior officials aware of the matter. This was decided over a series of meetings held by the committee of creditors. Essar Steel, which is one of the 12 large cases where lenders have initiated insolvency proceedings, will soon be put on the block. Earlier, lenders had decided on a two-stage process, in the first stage of which bidders with Rs 500 crore cash balance will have access to financial data. In the second stage, the resolution professional will shortlist bidders depending on the resolution plan they provide. The shortlisted bidders will have access to technical data about the plant and machinery of the company. (Economic Times)
Source: Other (18.12.2017)

Assarel-Medet won the Innovative Enterprise 2017award Asarel-Medet AD received the "Innovative Enterprise of the Year" award in the "Green Innovation" category. "We believe that the sustainable development of Assarel-Medet AD is unthinkable without care about nature and investment in eco-innovation", said Delcho Nikolov, the Executive Director, after he received the award. The recognition of Assarel-Medet AD is for the unique project for technical and biological recultivation of a mining facility in operation - Oxidous deposit, to which over BGN 10 million have been invested so far. After the technical recultivation of the mining deposit, the site is subject to biological recultivation by grassing with special mixtures, similar in character to the naturally occurring grassland habitats in the area. One decare of land reclamation in 2015 was experimentally planted with lavender, and in 2017 the first 110 kilograms oil of lavender was produced.
Source: Standart (19.12.2017)

ArcelorMittal-SAIL set to make auto steel in India in 3 years Steel Authority of India Ltd (SAIL) will start producing automotive steel in a $1 billion partnership with ArcelorMittal in three years, a top government official said, helping cut imports of high-grade steel as the country revs up car manufacturing. SAIL has approved entering into a non-binding” agreement of terms on the joint venture with the world’s biggest maker of the alloy, the state steelmaker said in a statement on Wednesday. SAIL said a definitive agreement with ArcelorMittal would be finalised in due course subject to financial viability”, but steel secretary Aruna Sharma told Reuters on Friday the joint venture would start production in three years. Sharma, the top civil servant in the steel ministry, which controls SAIL through the government’s 75% stake in the steelmaker, did not elaborate on the time or other details. SAIL spokesman M.C. Agrawal said the company and ArcelorMittal have cleared the first stage in the process of signing a formal agreement on the automotive steel venture, but that it was too early to talk about any production deadline. (Metal Junction)
Source: Other (20.12.2017)

IEA: Coal Demand to Remain Flat to 2022 Global demand for coal should remain nearly flat between 2017 and 2022, resulting in a decade of stagnation for coal consumption, according to the International Energy Agency’s annual coal market report. Global coal consumption fell 1.9% to 5,357 million tonnes of coal equivalent (Mtce) last year, the second year of decline, because of lower gas prices, a surge in renewables and improvements in energy efficiency, according to the report. Coal demand is down 4.2% over the last two years, nearly matching the two-year decline in the early 1990s, which remains the biggest recorded drop since the IEA started compiling statistics more than 40 years ago. The share of coal in the global energy mix is forecast to decline to 26% in 2022, from 27% in 2016. Although coal-fired power generation increases by 1.2% per year through 2016-22, its share of the power mix falls to just below 36% by 2022, which would be the lowest level since IEA statistics began. Coal demand dropped in China, the United States and the European Union in 2016, but increased in India and across many parts of Southeast Asia, and shows no signs of slowing down. For instance, despite the rapid growth in renewables, Indian coal-fired power generation is expected to grow almost 4% a year through 2022. While India will be increasingly important to global coal markets, China will remain the key driver. The potential for coal demand growth in China is limited, but the country’s supply-side reforms will be critical factors for coal prices in the coming years. Meanwhile, the European Union, accounting today for just 6% of global demand, is set to become an increasingly marginal player. (Platts)
Source: Other (21.12.2017)