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India Faces Iron Ore Shortage with Mine Auctions on the Horizon - CRU

Leading research agency CRU said that “On 31 March 2020, the mining leases of mines in India totaling 60 million tonnes per year of iron ore production will come up for auction. The majority of these mines are located in Odisha. The state government there has set out a 9-month schedule, from July 2019, for completing the auction process. However, we believe that this schedule is too ambitious and that mine restarts after the transfer of leases to the new owners will not occur for at least three to four months after the 31 March 2020 cut-off date. As a result, the current oversupply of ore in India will switch to undersupply and imports will be required. This Insight explores the mine auction process and sets out why we believe mine restarts will be delayed.

India is the world’s fourth largest iron ore producing country after Australia, Brazil and China with an annual production of 210 Mt. There are five major iron ore producing states in India. Amongst them, Odisha produces the most, contributing 52% to total production. The state produces mostly medium-grade material (i.e. 62.5% Fe) that is consumed domestically and some low-grade material that is either stockpiled or exported. The other iron ore producing states are Chhattisgarh, Karnataka, Jharkhand and Goa. In Goa, most of the iron ore produced (20 Mt) is of low-grade and exported, but the Supreme Court has cancelled all mining leases here since 2018 for environmental reasons.

India is broadly self-sufficient in iron ore, as indicated in the second graph above, which shows that imports are minor compared with exports. However, this situation is likely to change, at least temporarily, owing to the iron ore mine auctions for the renewal of mining leases in 2020 in the key producing state of Odisha. Our view is that production in Odisha will certainly be impacted by these auctions and India will have to import more iron ore while the auction process is completed.

Since the mining leases of major iron ore miners in the country are set to expire on 31 March 2020, merchant miners in Odisha, which has the large majority of expiring leases, have ramped up iron ore production to maximise output in this fiscal year the last fiscal year under current ownership. Despite the domestic market being oversupplied and the international iron ore market being undersupplied and trading at over $100 /t, Indian iron ore exports remain relatively low due to the 30% export duty that is imposed on ore of 58% Fe and above. In contrast, there is no duty imposed on exports of low-grade ore and pellets and these exports have shown some response in the current market.

Although currently oversupplied, following the auctions, we expect undersupply by 2020 Q2 when mine restarts under new owners will be delayed due to lengthy statutory approvals for forest/environment clearances, permissions from pollution control boards, mining plans etc. This undersupply is likely to last for at least three to four months.

Source : Strategic Research Institute
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RINL CMD Inaugurates Heating up of COB 5, Pumping from KBR2, Retail Outlet & LPG 2 plant.

Mr PK Rath CMD of RINL VSP launched multi-project commissioning activities of new Coke Oven Battery-5 Project Complex i.e. heating up of Battery-5. He also Inaugurated remotely the Pumping Operations from KBR2, Retail Outlet at Peda Gantyada and Commissioning of LPG 2 plant. Mr Rath congratulated all the persons involved in the Battery Project and stressed the importance of the commissioning of the battery as per schedule and exhorted them to put all out efforts to achieve the same with strict adherence to safety standards. He also congratulated all the persons involved for pumping operations from Kaniti Balancing Reservoir2, retail outlet at Gantyada and commissioning of LPG 2 Plant.

The Battery charging will be taken up after achieving required temperature in the Battery, which will take about 3 months. The COB-5 was constructed along with the existing batteries at an estimated cost of INR 2,500 crores with a production capacity of 0.840 million tonnes of BF grade coke per yea

Kaniti Balancing Reservoir-2 has been built to provide additional water storage facility, to cater to the enhanced levels of production. It is built by L&T under the consultancy of WAPCOS. The capacity of the Reservoir is about 12.32 million cubic meters (0.5 TMC) and built at the cost of INR 465.85 Crores. There are four pumps and Capacity of each pump is 4500 CuM per hour. With this, Reservoir water storage capacity has increased to 65 days at 7.3 Mtpa liquid steel production level.

RINL-VSP has augmented its LPG storage capacity by constructing a mounded facility(LPG storage plant-2) at a cost of INR 15 crore to stock 225 metric tones (3X75MT bullets), in addition to the existing 115 metric tonnes capacity of LPG plant-1. The plant was built by Optech, Mumbai, under the engineering and project management consultancy services of MECON Limited.

RINL Retail Outlet is situated near BC gate at Peda Gantyada. It was developed at the cost of INR 4.36 Crore in an area of 5 acres with a storage capacity of 16,000 tonnes of steel and having a 100 MT weigh bridge. Retail outlet facilitates delivery of materials to low volume buyers to order less & multiple products in one vehicle in customized length/ready to use at site, finished products like cuts, bends and stirrups etc. Retail outlet is an additional distribution channel to sustain sales in alternate market segments and facilitate delivery of material at customers doorsteps.

Source : Strategic Research Institute
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Deal to Rescue British Steel Within Grasp - Mr Greg Clark

The Northern Echo reported that UK’s Business Secretary Mr Greg Clark, while answering a question from Redcar MP Ms Anna Turley, told MPs that an agreement to ensure the flourishing of British Steel's operations for many years to come is not certain but certainly within grasp. He said “It is still an uncertain time for the workforce and their families, but the world needs steel and British Steel is amongst the best in the world.”

Uncertain of his own Cabinet future, Mr Clark told MPs that it would require the active participation of everyone. He said "And in particular to whoever stands at this despatch box to devote themselves unstintingly to achieve a great outcome for everyone concerned with British Steel, which I believe, though not certain is certainly within grasp and that is the flourishing of British Steel's operations for many years to come."

Mr Clark said that although all decisions are for the official receiver "I've been active as members know in visiting prospective buyers in many parts of the world to make it clear that the UK Government will, within its legal powers, work with a good long term owner of these important assets to see how we can help them realise their vision for the company."

Mr Clark said the British Steel support group, which he chairs, had met eight times. He said: "The confidence that the support group has built, coupled with a Government indemnity to the official receiver, has allowed trading to continue, orders to be won and production to increase. This is without precedent in my experience."

He added: "I'm pleased to say that the official receiver has said that he is encouraged by the level of interest in purchasing British Steel and his special managers EY are currently in further discussions with potential buyers. The official receiver has made it clear that given the complex nature of the operations any potential sale will take time to deliver."

The Northern Echo
www.thenorthernecho.co.uk/news/177917...

Source : Strategic Research Institute
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SFIO Recommends Action 200 Bank Officials in Bhushan Steel Ltd Case

Money Control reported that cracking down in the Bhushan Steel case, the Serious Fraud Investigation Office has recommended that the Department of Financial Services, the Reserve Bank of India and the Central Bureau of Investigation act against over a dozen banks for their alleged involvement in financial misappropriation carried out by the company’s promoters. In its report that runs into over 70,000 pages, the investigating agency has charged officials of 13 banks of being hand-in-glove with the Bhushan Steel promoters and indicated that 200 or more officials could be involved.

Two highly placed officials said SFIO’s probe found wrongdoing at multiple levels, including that of top management, in the handling of a multi-bank loan to Bhushan Steel. SFIO report said “Basically the banking fraud has happened at two levels. One at the operational level, and another at management level – to cover up the operational fraud in the form screening committee meetings and the Joint Lender Forum submitting its response to RBI seeking closure of the forensic audit, suppressing material facts made out in the report.”

The SFIO submitted its 70,000-page report in a special court in Dwarka, Delhi on July 1. The report has been shared with RBI and the Central Vigilance Commission as well, to facilitate action against the banks. It details fraudulent use of 1600 letters of credit that total up to INR 45,000 crore, and the overvaluation of assets by INR 15,000 crore.

Source: Money Control
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SDI Awards SMS Group Order for Supply of Complete Steel Production Line for Sinton

Steel Dynamics Inc has awarded SMS group an order for the supply of a complete steel production line, from the steelworks to the CSP® plant and from the cold rolling mill to the galvanizing line for its Sinton location in the state of Texas. With an annual capacity of 3 million short tons (2.7 million tons) of steel the plant's productivity is setting new standards. In addition to the mechanical equipment from the liquid phase up to strip processing, the scope of supply by SMS group comprises X-Pact® electrical and automation systems as well as technical support during installation and commissioning. Commissioning is scheduled for mid-2021.

For SDI’s production line, the systems supplier SMS group will supply the following components: The steelworks will be equipped with two direct-current electric arc furnaces (DC-EAF) having a capacity of 210 short tons (190 tons) each and two twin ladle furnaces (LF) and a double vacuum tank degasser (VD). It has an annual capacity of liquid steel of over three million tons.

The CSP® plant will enable SDI to produce thin slabs with thicknesses of up to 5.2" (130 millimeters) and slab widths of up to 84" (2,134 millimeters).

The CSP® continuous caster is designed as a single-strand curved mold plant (VLB – Vertical Liquid Bending). With a metallurgical length of over 82ft (25 meters) a yield of 7.5 tons per minute and casting speeds of up to 19.7ft/min (6 meters per minute) are attained.

An eight-stand rolling mill will enable SDI to produce API hot strip grades with thicknesses up to 1" (25.4 millimeters) and widths up to 84" (2,134 millimeters). The mill is designed for a minimal strip thickness of 0.047" (1.2 millimeters).

This CSP® plant will have a hot strip capacity of 3 million short tons (2.7 million tons) per year.

Following the CSP® plant, a five-stand pickling line/tandem cold mill will be arranged. To meet future demands, the process section of the pickling line/tandem cold mill (PL/TCM) will be equipped with SMS group‘s latest turbulence technology and a 600-kN leveling unit. With the aid of a payoff reel upstream the tandem cold mill, the pickling line and tandem cold mill can be operated in parallel independent of each other. This permits the hot strip to be pickled and oiled or directly guided to the tandem cold mill. The annual pickling capacity will be 1.1 million short tons (1.0 million tons).

The five-stand, six-high tandem cold mill will have a wide roll gap setting range and thus ensure excellent cold strip tolerances and strip flatness. The strip width is 78" (1,981 millimeters). The tandem cold mill will be able to roll the cold strip down to 0.08" (0.20 millimeters).

A carousel reel will finally coil the rolled cold strip. In coupled mode with the continuous pickling line the annual capacity will be 850,000 short tons (0.77 million tons).

The skin-pass mill for post-treatment of hot and cold strip with priority at cold strip skin-passing is designed for an annual capacity of 440,000 short tons (0.4 million tons).

For cold and hot strip galvanizing, the plant will be equipped with a continuous galvanizing line including a horizontal Drever furnace heated by a direct-fired and a radiant-tube zone. The line will be prepared for the later installation of an ultra-fast gas cooling section to allow for future production of high-strength steel. The scope of supply also includes a DUMA-BANDZINK air knife system that will homogeneously and precisely set the zinc layer thickness to ensure high surface quality. A change system with two zinc pots will permit the strips to be coated with a conventional zinc layer or an aluminum-zinc alloy. For post-treatment, the line will be equipped with a four-high skin-pass mill stand, a tension leveler and two horizontal shuttle-roll coaters, as well as with an oiling machine in the exit section. The galvanizing line will be able to process strips with a thickness of up to 0.16" (4 millimeters) and a width up to 76" (1,930 millimeters). Its annual capacity will be 550,000 short tons (0.5 million tons).

For the complete technological part of the new plant complex, the X-Pact® electrical and automation systems included in the supply scope are an important factor. They assure that productivity, production flexibility and quality of the final products will meet actual and future requirements. The applied concept and equipment provide a solid foundation for the digitalization of the plants and processes and for future-oriented extensions and applications. Diagnosis and visualization concepts will be used in the entire plant. They assure and sustain effective and preventive maintenance activities.

SDI intends to sell the products in the rapidly expanding markets of high-strength steel tubes, multi-phase steels for vehicle construction and structural steels for various applications. SDI will become the leader for this new type of minimill for the production of hot strip. In particular, it is the new, extremely high-performance continuous caster in combination with the proven thermo-mechanical rolling process that will allow the production of special steels in unprecedented dimensions.

Source : Strategic Research Institute
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NLMK Group and LTC Group Ink Strategic Partnership Agreement

NLMK Group has signed a long-term strategic partnership agreement with LTC Group, Italy and Middle East, a leading European manufacturer of components for transformers and power generation devices. Under the agreement, NLMK Group companies in Lipetsk and Yekaterinburg will regularly supply grain-oriented and non-grain-oriented electrical steel and provide technical support to LTC Group. The agreement also calls for extended cooperation in the development and market promotion of new products.

Ilya Guschin, NLMK Group Vice President, Sales, said “The strategic agreement with LTC, our key client, takes our long-term partnership to a new level. It reflects mutual commitment to joint long-term cooperation. It will enable our partner to make better products from NLMK steel, and is fully in line with our strategy to expand deliveries of premium products to our key markets.”

NLMK Group produces 100% of all Russian grain-oriented electrical steel at its facilities in Lipetsk and Yekaterinburg. NLMK Group also manufacturers non-grain-oriented electrical steel at its Lipetsk site. NLMK accounts for 81% of Russia’s entire output of this high-tech product.

LTC Group is the leader in grain-oriented electrical steel processing in Europe and in the Middle East. It operates several production units in Italy and one in United Arab Emirates. The company produces magnetic cores for all types of transformers and reactors.

Source : Strategic Research Institute
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Australian Environmental Clean Technologies Ends JV with NMDC

Australian Environmental Clean Technologies Limited on June 26th provided an update on the status of its India project regarding the current MOU with India partners NLC India Limited and NMDC Limited. It said “Meetings have been held with our project partners NLCIL, NMDC and the Australian High Commission in Delhi. In the absence of formal advice from NMDC, ECT has formed the reasonable opinion that NMDC will not proceed with the project. ECT has made the subsequent decisions to rescind the previously offered MOU extension, and further to withdraw from the current MOU in its present form in order to pursue & focus on other key projects in India, Australia and other global jurisdictions.”

ECT Chairman, Glenn Fozard, and ECT India CMD, Shri P Selvakumar have, over the past week, travelled to Hyderabad, Neyveli and Delhi, to meet with NMDC, NLCIL and the Australian High Commission respectively. The purpose of these meetings was to seek clarity on this matter and a formal response to both the outcome of the NMDC board meeting and the proposed MOU extension.

Despite not receiving formal advice during this period, based in part on the meetings held in the last week, the Company has formed the reasonable position that NMDC will not be proceeding with the project. On this basis, ECT has made the decision to rescind the offer of any further extension, withdraw from the MOU in its current form, and move forward with its other key projects in India, Australia and other global jurisdictions.

Source : Strategic Research Institute
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EIB Advances EUR 300 million to voestalpine

The European Investment Bank is providing a loan of EUR 300 million in two tranches to voestalpine AG. The first tranche will be channelled into the construction of a cutting-edge special steel plant in Kapfenberg, Austria. From 2021, the fully digitalised plant will produce around 205 000 tonnes of high-performance steels per year for the international aviation, automotive and energy industries and secure more than 3 000 highly qualified jobs on the site on a long-term basis. The second tranche of the EU loan will be used for the technology group’s research and development programme over a period of three years.

EIB Vice-President responsible for activities in Austria Mr Andrew McDowell stated that “We want to preserve and also create new jobs in Europe’s manufacturing industries. But we can only do this with advanced, highly efficient and innovative facilities that can compete successfully on an international scale. So I very much welcome this cooperation with voestalpine, which is focusing on the construction of a new special steel plant, and also on the research and development work of the company, with which we have already been working together closely and constructively for many years.”

voestalpine AG’s CEO Herbert Eibensteiner said that “voestalpine’s global success and growth is based to a large extent on our group’s intensive research and development work. Driving innovation forward always means investing in new developments; the EIB finance will therefore play a key role in our R&D activities over the coming years. The financial resources made available will also make a crucial contribution to the construction of the special steel plant in Kapfenberg, which will set new international standards in digitalisation, product quality and environmental protection.”

Source : Strategic Research Institute
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Air Liquide to Deliver Hydrogen For thyssenkrupp

Air Liquide and thyssenkrupp Steel have joined forces in a pioneering project to develop lower carbon steel production. For the first time, hydrogen will be injected to partially replace pulverized coal at a large scale in the blast furnace during steel production. After successful completion of a pilot phase this autumn 2019, Air Liquide will ensure a stable supply of hydrogen from its 200 km network in the Rhine Ruhr Area. This solution will be implemented at one of the blast furnaces in thyssenkrupp's integrated steel mills in Duisburg site, Germany. Transferred to all blast furnaces at the site, thyssenkrupp aims at reducing CO2 emissions in the production process by up to 20%.

This initiative underlines the shared commitment of Air Liquide and thyssenkrupp Steel to a lower carbon future pathway. Both companies have set ambitious goals to curb their emissions drastically. As part of its global approach to climate, Air Liquide has committed to promote solutions to help its clients reduce their carbon footprint.

Hydrogen will play a significant role in the transition to a low-carbon future. It can replace coal used in iron and steel industrial processes such as in this project. Hydrogen can also be stored and transported in large quantities, allowing uses across many domains, such as transport, heat, industry and electricity. In the past 50 years, Air Liquide has developed unique expertise enabling it to master the entire hydrogen supply chain, from production and storage to distribution.

Source : Strategic Research Institute
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GMS Market Commentary on Shipbreaking in India in Week 29 - SEEKING STABILITY!

The ongoing collapse in Indian steel plate prices has rocked the industry of late and this has resulted in very few local Buyers willing to table offers on any available units, until some stability is seen in the local market. Although the currency has been relatively steady, fluctuating in the mid to high INR 68 against the US Dollar, it is the shocking decline in steel prices that has really affected the domestic ship recycling sector. Not only have plate prices declined a further USD 16/Ton this week, over the last 3 weeks alone, Alang Recyclers have endured a plummet of over USD 40/Ton.

Meanwhile, much of the focus (including many different HKC SoC green vessels) of various Ship Owners has been on India over the past month or two and even though port reports have shown a diminished number of vessels arriving locally, they have shown a diversity in the types and sizes of vessels arriving Alang over the course of the month.

Source : Strategic Research Institute
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ATI Announces Second Quarter 2019 Results

Allegheny Technologies Incorporated reported second quarter 2019 results, with sales of USD 1.08 billion and net income attributable to ATI of USD 75.1 million, or USD 0.54 per share. Second quarter 2019 results include USD 21.6 million in net pretax gains on previously-announced sales of non-core assets comprised of a USD 29.3 million gain on the first of two transactions to monetize oil & gas rights and a USD 7.7 million loss on sale of the industrial forgings business. Excluding these non-core items net-of-tax, second quarter 2019 net income attributable to ATI was USD 55.0 million, or USD 0.40 per share. This compares to ATI’s second quarter 2018 sales of USD 1.01 billion and net income attributable to ATI of USD 72.8 million, or USD 0.52 per share.

Mr Robert S Wetherbee, ATI President and Chief Executive Officer said that “In the second quarter, we demonstrated our ability to successfully manage near-term headwinds, as well as make progress on strengthening our balance sheet. Both of our business segments made important strides in the quarter to resume our trajectory of profitable growth. Non-core asset sales, including divesting a smaller business that did not align with our strategic priorities, sharpens our focus on differentiated products requiring our materials science capabilities and advanced process technologies.”

“HPMC sales increased 9% in the second quarter 2019 compared to the prior year primarily due to a 17% increase in sales to the aerospace & defense markets. Next-generation jet engine products sales increased by 26% and represented 59% of total second quarter 2019 HPMC jet engine product sales. Sales to the commercial airframe market were 40% higher driven by increasing emergent demand from a large OEM customer, and government aerospace & defense sales were 32% higher across a broad range of programs. HPMC operating profit slightly increased compared to the prior year to USD 98.9 million and represented 15.4% of sales. “HPMC segment results showed strong topline growth as we continued to meet our aerospace ramp commitments. Segment operating profit improved as our sales on major commercial aerospace programs continue to grow.”

FRP sales were 5% higher in the second quarter 2019 compared to the prior year, primarily due to project-based demand for high-value products in the oil & gas market, as well as marine scrubber products within the energy market and demand growth from the aerospace & defense market. Mr Wetherbee said that “Our U.S. Flat Rolled business returned to profitability in the second quarter as we achieved a better balance of raw material costs and indexed-based selling prices. Sales of high-value nickel-based and specialty alloys were more than 30% higher than both the first quarter 2019 and the second quarter 2018 as we continue to focus on differentiated products.”

Strategy and Outlook

Mr Wetherbee said that “We continue to work proactively with our customers to meet our supply requirements for the ongoing aerospace production ramp, and as previously announced, we expect to maintain our current production and delivery schedules related to the 737 MAX aircraft. We have confidence in Boeing’s ability to address current narrow-body model issues. HPMC segment operating margins in the second half of 2019 are expected to improve significantly year-over-year. While demand remains strong for single-aisle platforms, uneven order patterns and inventory management actions by a major aero-engine customer are expected to negatively impact second half shipments, partially lowering the benefit from increased share of high value commercial jet engine materials and components. The Company believes these issues are temporary and the benefits from our increased share will meaningfully benefit 2020 and future periods. We are dedicated to strong operational execution and to meeting our aerospace production ramp requirements. In the FRP segment, the Company expects continued profitability in the second half of 2019 due to improved customer demand for high-value products – both in the U.S. and for the STAL joint venture, favorable raw material surcharge values, and increased carbon conversion volumes. “Our focus for the FRP segment remains on achieving sustainable profitability by improving the product mix and increasing asset utilization of our Hot-Rolling and Processing Facility.”

Source : Strategic Research Institute
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Lancashire Steel Ready to Resume Operations

Kwekwe based company, Lancashire Steel, has received a USD 2 million boost to purchase raw materials and indications are that formal operations may resume anytime soon. The company ceased operations about a decade ago following the closure of its major raw material supplier, Ziscosteel, in 2008. Lancashire received a loan facility from Reserve Bank of Zimbabwe subsidiary, Zimbabwe Asset Management Corporation (Private) Limited. Speaking during a Parliamentary Portfolio Committee on Industry and Commerce familiarisation tour of the plant last week, company general manager Mr Ezekiel Machingambi said they expected to receive their first truckload of raw materials from South Africa this week. He said that “We received a USD 2 million loan facility from ZAMCO and we expect to receive our first truckload of raw materials this week. We ordered semi-processed products from South Africa, we will beneficiate them in our wire mill section.”

He said the revival of the company, which will be done in stages, will start with the wire plant before resuscitation of other plants in the long run. He added that “We are obviously going to start with the wire mill plant in the initial stages before we bring back the rod mill. Going forward, we are looking to operations commencing earnestly after we import the raw materials.”

He said Lancashire Steel has had to import raw materials because locally there are no billet sizes that fit in the company’s machinery. He added that “We need a reliable supply of billets and we have not been very lucky in terms of the size of billets that we require. So, we will be importing rods and semi-processed galvanised wire from South Africa.”

Source : CHRONICLE
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NLMK to Invest INR 800 crore Maharashtra

Express News Service reported that Maharashtra government announced that Russian steel giant Novolipetsk Steel is likely to make an investment of INR 800 crore in Maharashtra. Officials from the industries department said senior officials of the company met Industries Minister Subhash Desai and discussed proposed projects. The official said the company had visited Shnedra and Bidkin in Aurangabad’s Delhi-Mumbai Industrial Corridor as part of scouting for suitable plots for their project. An official said “The project will come up in Aurangabad Industrial City. The company officials have made constant efforts for the past two years and have visited Aurangabad thrice so far and had discussions with the concerned department.”

The official added that in the first phase, the company is expected to make an investment of INR 800 crore, followed by INR 6,000 crore in the second phase.”

Source : Strategic Research Institute
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Steel Pickling Units Can’t Be Allowed In Residential Areas - NGT

Hindu reported that observing that steel pickling units cannot be allowed in residential areas as they fall under the prohibited list of industrial activity under the Master Plan 2021, the National Green Tribunal dismissed review pleas moved by the Delhi government and the polluting industries. A Bench headed by NGT Chairperson Justice Adarsh Kumar Goel said “There was no study warranting amendment of the MPD-2021. The area was polluted and a huge amount of hazardous waste had already been generated which was not being scientifically disposed of. The pollution was harming the environment, including the Yamuna, and public health.”

The Bench directed an expert panel comprising representatives of the Central Pollution Control Board, National Environmental Engineering Research Institute and IIT-Roorkee to assess the extent of damage caused to the environment since June 2008.

The Bench said that “Even if MPD-2021is amended later, there is no right to cause pollution by an industry in view of statutory provisions... On this basis, the regulatory authorities are to take action for recovering compensation after identifying the polluters... Compensation may be assessed following the formula evolved by the CPCB.” The green panel further noted that an inspection carried out in January and February had shown that the Wazirpur area is highly polluted.

Directing the committee to furnish another report by October 31, the Bench said that “After the report is submitted, the Delhi Chief Secretary may suggest alternative monitoring mechanism for the purpose.”

The directions came on a plea seeking execution of a previous NGT order that had directed the Delhi Pollution Control Committee to take action against stainless steel pickling units that were operating in residential areas across the city.

Source: Hindu
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Vietnam Exports USD 2.24 billion of Steel in H1

VNS reported that Viet Nam exported 3.44 million tonnes of steel and iron worth USD 2.24 billion in the first half of this year, up 4% in value and 21% in volume from the same period last year. In the ASEAN bloc, Cambodia was the largest importer of Vietnamese steel and iron during the January to June period with more than 880,000 tonnes, valued at USD 523 million, 48 per cent higher in volume and 38 per cent higher in value from the first half of last year. It was followed by Indonesia with 370,000 tonnes worth USD 245 million and Malaysia with 373,000 tonnes worth USD 231 million. Viet Nam recorded significant growth in exports to China, Brazil, Japan, Saudi Arabia, Pakistan and the Philippines.

In contrast, the nation’s steel and iron exports to two other major outlets the US and the EU saw strong declines in both volume and value. About 285,000 tonnes of steel and iron were exported to the US, earning the country USD 223 million, representing a reduction of 35% in volume and 41% in value. Exports to the EU, meanwhile, dropped 30% in volume and 41% in value to 200,000 tonnes and USD 136 million.

Source : VNS
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Research Confirms that Air Quality in Magnitogorsk has Improved

Magnitogorsk was removed from a list of Russian cities with very high levels of air pollution, according to a report by the Federal Service for Hydrometeorology and Environmental Monitoring (Roshydromet) in 2018. Thanks to MMK's large-scale environmental programme, the Comprehensive Air-quality Index (CAI) indicator for the city will be reduced to a low level by 2025. The reason for the exclusion of Magnitogorsk from the list of cities with the highest level of air pollution in 2018 was due to the improvement of the environmental situation in the city, say authors of the study. "Compared with the previous year, the concentration of Benzo(a)pyrene in Magnitogorsk decreased by more than twofold," researchers said.

Since 2015, MMK has been implementing its Clean City strategic initiative which will make it possible to reduce the CAI indicator of the city to below 5 units by 2025. As part of this initiative, in recent years the Company has completed the reconstruction of the sulphur recover units in the sintering plant with a total investment of more than 4 billion rubles, upgraded the air-cleaning systems in the blast furnace shop with a total investment of 1.9 billion rubles and built a system of dust collection systems at blast furnaces Nos. 9 and 10, worth 1.2 billion rubles.

In July this year, MMK launched a new sinter plant, with a total investment of around 30 billion rubles, which was built using the latest environmentally friendly technologies. The commissioning of this plant will make it possible to achieve a twofold reduction in dust emissions, a fourfold reduction in sulphur dioxide emissions and a sixteen-fold reduction in Benzopyrene emissions. The next step is the construction of a new coke furnace complex which will allow for five old plants to be decommissioned. In total, MMK's environmental projects will allow the Company to reduce emissions by 26,300 tonnes by 2025, which, together with urban activities, will ensure a 20% reduction in total emissions at Magnitogorsk.

The total cost of MMK Group's environmental activities in the period from 2000 to 2018 exceeded 58 billion rubles. The Company will allocate more than 38 billion rubles for environmental activities up to 2025, including 21.7 billion rubles for air protection measures.

Source : Strategic Research Institute
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Iron Ore Pellet Makers Want to Take Part in Iron Ore Auctions in Odisha

Business Standard reported that iron ore pellet manufacturers across Odisha have sought the state government’s go-ahead to participate in auctions of iron ore blocks. Pellet Manufacturers Association of India wrote to the Odisha government’s steel & mines department “Pellet plants in the state do not have captive mines and are largely dependent on merchant miners for raw material supply. Moreover, 16 merchant mines of around 79 million tonne per annum capacity are going to lapse on March 31, 2020 which would add up to the shortage further and more pellet plants may close down.”

Citing Karnataka’s example, PMAI pointed out that the pellet manufacturers were permitted to bid for iron ore blocks. Odisha, however, presented a contrarian trend where iron ore blocks offered so far were exclusively for integrated steel plants.

PMAI has suggested iron ore blocks with 75 per cent fines in their repository may be kept aside for pellet makers while the lumps from such deposits can be sold in the open market.

Most pellet makers in the state are running their units without captive iron ore resources and depend on merchant supplies. Odisha has a nameplate capacity of 29 million tonnes per annum, or 34 per cent of the country’s total pellet making capacity. In FY19, the total pellet output in Odisha was 20.76 million tonnes

Mineral Auction Rules, 2015 empower state governments to reserve iron ore blocks for end use plants. The choice of end use project is in the eminent discretion of the respective state that auctions the mineral blocks. The blocks put up for electronic auctions can be set aside for steel plants, pellet units as well as sponge iron plants.

Source: Business Standard
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Hagang Orders 2 Danieli Grinders for Special Steel Billets

Danieli Centro Maskin HiGrind technology guarantees the strictest tolerances and best surface quality. The two new billet grinders will ensure over 100,000 tonne per year of throughput for Shagang Group, in full skin-pass mode, by processing 140- and 150-mm billets up to 16m long, targeting very high requirements in terms of surface roughness and overall quality. The two grinders will be manufactured at Danieli China in Changsu, including all handling equipment, hydraulics, secondary filtering equipment. Electrics and automation will be supplied by Danieli Automation.

Shagang Group is a special steel manufacturer operating seven mills. The first Danieli Centro Maskin grinder was supplied 10 years ago. The new installation, foreseen by Spring 2020, will allow the increase of quality products requested by the market.

The Danieli HiGrind process is the most advanced system for controlling tolerance of the grinding depth and the overall grinding quality, and ensures high output, yield recovery and overall operational cost reduction.

Source : Strategic Research Institute
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ArcelorMittal delays temporary halt of Polish plant
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WARSAW, July 25 (Reuters) - ArcelorMittal Poland said on Thursday it had decided to postpone the temporary shutdown of its blast furnace and steel plant in Krakow after protests by workers.

ArcelorMittal had said in May that it would halt for some time the plant in Krakow, southern Poland, in September, due to rising carbon emission costs and surging power prices.

“We have decided to postpone the idling of primary operations in Krakow, originally planned for September as we want to reevaluate the whole situation,” ArcelorMittal said in a statement.

The steel maker, which employs more than 11,000 people in Poland, said in May that the decision to shut the blast furnace and steel plant would affect 1,200 people, who would be transferred to other jobs or granted idle-time pay.

“We would like to once again underline that the idling will be temporary and that none of our employees will lose their job during this standstill. We are committed to our presence in Poland and want to continue to produce steel here,” ArcelorMittal said in the Thursday statement.

A Polish state-run news agency said around 1,000 trade union members protested on Wednesday in front of ArcelorMittal’s local headquarters in Dabrowa Gornicza, also in southern Poland. (Reporting by Agnieszka Barteczko; Editing by Dale Hudson)

Our Standards:The Thomson Reuters Trust Principles.

www.reuters.com/article/arcelormittal...
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SAIL BSP Secures IRS Certification for Steel Plates for Indian Navy

Steel Authority of India Limited’s Bhilai Steel Plant has got the necessary Works Approval Certificate from the Indian Register of Shipping to manufacture special shipbuilding grade plates for making Diving Support Vessel used by the India Navy. The plates will be supplied to Hindustan Shipyard Limited for making the vessels. These vessels are used for search, rescue & repair of undersea submarines & other vessels & structures by the Indian Navy.

This certification requires stringent monitoring and review of the entire systems from steel-making to testing. Accordingly, the processes and procedures adopted in Steel Melting Shop, Plate Mill and related sections of Research and Control Laboratory including flat products, SMS and Metallography were reviewed and the coveted certification was accorded.

SAIL-BSP is producing shipbuilding grade plates for several decades. The plant that has been exporting shipbuilding grade plates and producing warship grade plates DMR 249A for Indian Navy, has certification from Lloyds Register Asia (LRA), American Bureau of Shipping (ABS) and DetNorskeVeritas (DNV). However, as mandated by the Indian Navy, the plant has ensured that the plates to be used for DSB have the requisite IRS certification. The Works Approval Certificate that has been granted to SAIL’s Bhilai Steel Plant by Indian Register of Shipping (IRS) for manufacture & supply IRS grade plates of Normal Strength (A, B & D) with plate thickness ranging from 8 mm to 45 mm was handed over by IRS officials to senior officials of Bhilai Steel Plant on 25th July 2019.

Source : Strategic Research Institute
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