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ED Attaches SPS Steel Assets in Bank Fraud Case

Business Line reported that Enforcement Directorate has attached assets worth INR92 crore of SPS Steel Rolling Mills and others under Prevention of Money Laundering Act, 2002 in a bank fraud case. The attached assets consist of shares of an entity owning five-star hotel, three luxurious apartments, an office building and 0.33 acres of land.

ED took up the investigation on the basis of Central Bureau of Investigation's first information report against SPS Steel Rolling Mills, Bipin Kumar Vohra, the beneficial owner of the company and others for defrauding a consortium of eight banks led by Allahabad Bank in Kolkata for around INR 550 crore. The investigation under PMLA revealed that the defrauded amount was fraudulently siphoned through formation of shell companies. The accused also diverted the loan amount in their various other existing business activities running five-star hotels, security agencies and also for repayment of earlier debts.

Source : Business Line
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Indonesian Stainless Steel Exports Likely to be Hit by Updated EU Safeguards - CRU

The European Commission implemented amendments to the EU's safeguard measures starting from 1 October. The effects of these changes are expected to be relatively limited, however, Indonesia is losing its developing country exemption that is likely to restrict their export volumes of stainless into the EU significantly. The European Commission implemented adjustments to the safeguard measures, due to come into force on 1 October. These are modifications which aim to balance pressure from steelmakers to tighten the safeguards and importers' interest in maintaining regular trade flows.

The following are the eight main implemented changes to the safeguard quotas:
1. Indonesia is no longer exempted from the safeguards for stainless flat products and seamless tubes.
2. Individual countries cannot use more than 30% of the global quota, for products with a global quota (HR coil, large welded tubes).
3. The large welded tubes product group will receive a global quota in line with the hot rolled coil quota.
4. For rebar and wire rod individual countries cannot use more than 30% of the Other Countries quota once it is made available to countries that have filled their own quotas in the last quarter of the quota period (calendar Q2).
5. The annual increase of the quota volume per period will be reduced from 5% to 3%. This would apply to the second half of the current quota period starting from 1 October and would retroactively lower the total available quota volume.
6. The category A (non-automotive) metallic coated sheet quota has been expanded to include the CN codes previously unique to category B metallic coated sheet quotas. Category B will remain untouched and will apply to the same trade codes as previously.
7. Material imported under the category B (automotive grade) metallic coated sheet quota will need to prove end-use in the automotive sector.
8. India will – uniquely – have its metallic coated sheet quotas merged into one.

Source : Strategic Research Institute
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Metalloinvest Joins UN International Sustainability Initiative

Metalloinvest has joined the United Nations Global Compact an international initiative centred on corporate sustainability and social responsibility. As a party to the Global Compact, Metalloinvest has undertaken voluntary commitments to comply with the fundamental principles of the UNGC in the fields of human rights, labour relations, environmental protection and the fight against corruption. Metalloinvest is committed to industrial leadership through sustainable growth and the creation of shared values for all stakeholders. Every year, the Company strengthens its awareness about various aspects of sustainable development. Since 2015, Metalloinvest has been supporting UN global initiatives, including pursuing 17 UN Sustainable Development Goals.

Metalloinvest is constantly increasing the production of high-quality iron ore and steel products, reducing emissions and waste in its own production; supplying steelmaking companies all over the world with raw materials which help improve the environmental performance of the steel industry.

Mr Andrey Varichev CEO of Management Company Metalloinvest said that “Joining the UN Global Compact is a great honour and responsibility for our Company. Large businesses with advanced technologies play an important role in the preservation of resources, the protection of life and health, the development of human capital, education and research. Participation in the Global Compact provides Metalloinvest with the opportunity to share best practices and join forces with companies around the world. This will help us to effectively build a business strategy based on the principles of long-term sustainability."

Source : Strategic Research Institute
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Vallourec bags Major Contract from ADNOC for Supply of Tubing & Casing

Vallourec has been awarded a contract by Abu Dhabi National Oil Company for the supply of tubing and casing, over a five year period, with a possible 2-year extension, for an amount of USD 900 million. It covers a full range of products, from standard API to high end premium OCTG for both onshore and offshore oilfields, and conventional to complex wells. In addition, Vallourec will supply a large range of “from mill to rig” services as part of its new Vallourec.smart services offer. Tubing and casing will be supplied from Vallourec's mills in Europe, South America and China.Deliveries are expected to start from second half of 2020.

This award represents one of the largest awards received by Vallourec to supply international markets. Mr Edouard Guinotte, Senior Vice President Middle-East/Asia, said that "We are delighted that ADNOC, the national oil company of Abu Dhabi and one of our key Group customers, has renewed its confidence to Vallourec by awarding this contract and enabling Vallourec to accompany ADNOC in its long term strategy. We will contribute to ADNOC's In-Country Value Program. Our successful track records in Quality, Health & Safety, and Environment have been decisive. This contract is a new milestone in our longstanding relationship with ADNOC, to whom Vallourec will provide added value, with increased flexibility and technical expertise included within our new services and digital offer Vallourec.smart."

Source : Strategic Research Institute
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India’s Crude Steel Production in August Falls 2.3% YoY - JPC

Platts reported that latest provisional data released late Friday by the Joint Plant Committee showed that India’s crude steel production fell in August to 8.99 million tonnes, down 2.3% from 9.20 million tonnes a year ago. Hot metal production in August reached 6.10 million tonnes, relatively flat from 6.11 million tonnes the year before, while monthly finished steel output was 8.45 million tonnes, up 2.4% from 8.25 million tonnes in August 2018. Apparent steel consumption in August was 8.61 million tonnes, up 1.7% from 8.47 million tonnes the year before. India was a net exporter of finished steel products in August at 983,000 tonnes against imports of 856,000 tonnes. The former was up 37.3%, while the latter gained 27.5%.

India’s crude steel production from April- August 2019 was 45.98 million tonnes, up 2% from 45.09 million tonnes a year ago. During the five-month period, overall hot metal production was 31.19 million tonnes, up 2.9% year on year, while finished steel output hit 43.22 million tonnes, up 5.6% from the year before. Steel consumption totaled 42.60 million tonnes over April to August, about 6.3% higher against the corresponding period of 2018. Overall trade figures for April-August still put India as a net importer at 3.35 million tonnes versus exports at 2.45 million tonnes, up 0.8% and down 7.0%, respectively.

Source : Strategic Research Institute
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GMS Market Commentary on Shipbreaking in Week 36 in India

India remains the lowest placed of all the subcontinent recycling destinations, with risible offerings, which remain stranded in the low-to-mid USD 300s/LDT and are still prevalent in Alang. Local port reports too showcase a marginal number of fresh arrivals at the waterfront and are further proof of the minimal number of sales taking place into Alang, at these pitifully lower levels. This is also due to the ongoing uptick in freight rates across the board that is keeping Ship Owners from offering their vessels into the recycling markets.

While local steel plate prices have fallen by about USD 75 per tonne since early July and this week was some more of the same, levels reportedly fell further by USD 4 per tonne. The ongoing deprecation has therefore been nothing short of excruciating for local Recyclers as it is only a matter of time before local offerings follow suit, invariably taking Pakistani levels further down with them.

This most recent depreciation of the Indian Rupee by about 2% has also exasperated local sentiments and it seems increasingly certain that it will be some time before we see a greater positivity return to this market.
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Two RINL Vizag Steel Employees Brought Medals at WBF Championship

Two employees of Visakhapatnam Steel Plant brought fame and name to the plant at global level by annexing One Silver and one Bronze Medal at Yonex BWF World Senior Badminton Championship held recently at Katowice, Poland. Sri PK Rath, CMD and Sri KC Das, Director (Personnel) RINL-VSP congratulated the winning duo for bringing laurels to the Company at international level. Sri Ayodhya Ram, President of recognized Union was also present on the occasion.

India bagged seven medals out of that two employees of VSP-- Sri K Prabhu Naik Naidu (Senior Manager, Central Stores Dept) bagged Silver Medal in 50+ Mixed Doubles (with partner Mrs Suzanne V from Chennai). Sri BVSK Lingeswar Rao (General Foreman, Sports Dept) annexed Bronze Medal in 50+ Singles.

Source : Strategic Research Institute
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Pakistan - BLEAK OUTLOOK!

Despite noteworthy declines from both India and Bangladesh, which should invariably have bought Gadani back into fore, Pakistani activity and levels have (unsurprisingly) remained depressingly muted. While very few Owners and Cash Buyers are open to committing their units into Pakistan at these lowly levels in the mid USD 300s/LDT, similar to local port reports in India and Bangladesh, Gadani’s waterfront is expected to remain a bleak & barren landscape for a healthy portion of the fourth quarter of the year.

Overall however, despite local steel plate prices maintaining a degree of stability and even reporting a significant improvement this week, it has been the ongoing import of cheap Iranian billets that have crippled the resale of the marginal amount of (small LDT) ship’s steel that has been delivered here throughout the year and has subsequently restricted local Recyclers from offering competitively.

Source : Strategic Research Institute
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GMS Market Commentary on Shipbreaking in Week 36 in Turkey - SUFFERING!

The ongoing suffering for the Turkish market was further exaggerated this week amidst a rapidly declining local steel plate price that fell by about USD 25/MT as the week ended.

Instantly, local offerings reciprocated in kind and even though there remains virtually no meaningful tonnage being proposed into the Turkish market, there was a noteworthy hesitance from Aliaga Recyclers on even indicating / offering on the marginal number of units being discussed this week.

Notwithstanding, through all of the local downfalls, the firming Lira (which improved from TRY 5.82 to about TRY 5.70 against the US Dollar as the week ended) did little to ease local fears of further falls in the coming week(s) ahead and local sentiment remained severely muted.

Overall, the situation seems to be getting worse for the Turkish ship recycling sector as subcontinent declines have slowed in comparison whilst Turkey’s declines have continued over the last couple of weeks, leaving Aliaga Buyers with increasingly fewer opportunities on medium-to-large LDT units.

Source : Strategic Research Institute
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Oil Leak Reported at US Steel

WBOI reported that US Steel had yet another oil leak on Friday. An official with the northwest Indiana company says it found a light, intermittent oil sheen near one of its pipes that discharges into Lake Michigan waterways. Ms Natalie Johnson is the executive director of the environmental group Save the Dunes. She says big spills in the recent past, like US Steel's spill of the cancer-causing chemical hexavalent chromium, have put people in the area on high alert. She said “It's very possible that there are other incidences on a much smaller scale that happen more common than what Save the Dunes or the public is really aware of.”

This comes just weeks after another leak from US Steel and a chemical spill from ArcelorMittal that killed 3,000 fish. Residents and environmentalists are hoping this won’t become the new normal.

Source : WBOI
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Russia to Help Nigeria Revamp Ajaokuta Steel

Punch reported that Nigeria’s Federal Government has intensified efforts at ensuring that sections of the Ajaokuta Steel Company Limited start production before the end of 2019. Nigeria’s Minister of Mines and Steel Development Mr Olamilekan Adegbite met Russian Ambassador Mr Alexey Shebarshir in Abuja on Tuesday. Russian envoy declared at the meeting that Russia is ready to partner the Federal Government to revamp the ailing company

The minister also informed the ambassador that Nigeria would welcome Russia’s collaboration in the quest to resuscitate the company. He said, “The government is ready to embrace any collaboration aimed at revitalising the steel industry to operate in full capacity. The Federal Government is working round the clock to ensure that sections of the company start production before the end of the year.”

He added that the revitalisation of Ajaokuta Steel was of utmost concern to the present administration.

Source : Punch
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Nanjing Steel & Sanhe Manganese Sign Strategic Agreement

SMM reported that Nanjing Iron and Steel and Sanhe Manganese Industry signed a strategic cooperation agreement, representatives of the two sides signed a metal manganese strategic cooperation agreement. Both sides said that after the signing of the cooperation agreement, the cooperation between Nanjing Iron and Steel Group and Sanhe Manganese Industry will be upgraded to a strategic level.

Nanjing Iron and Steel was founded in 1958. At present, Nanjing Iron and Steel Co Ltd has an annual production capacity of 10 million tonnes of steel.

Source : SMM
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GMS Market Commentary on Shipbreaking in Week 36 in Bangladesh

Replicating both Indian and Pakistani markets, Bangladesh’s decline has well and truly set in this week and there remains an overall reluctance from Chattogram Recyclers to offer any sensible levels or commit to any new tonnage at anywhere near the asking prices from Ship Owners and Cash Buyers alike. It has therefore turned into a wait-and-watch scenario for local Recyclers as cheap Chinese billets have recently started to flood the local market once again, undercutting local inventories and sending steel prices spiraling down by about USD 10 per tonne this week.

The one positive is that there remains a noteworthy slowdown in the import of fresh tonnage and as evident by Chattogram’s port position once again, not a single new vessel has arrived the Bangladeshi waterfront this week a truly pitiful scenario considering more LDT is currently awaiting beaching outside a lower placed Gadani market.

Finally, as some of the large LDT inventory that flooded the market earlier this year remains at local yards awaiting resale to local steel mills, we do not anticipate too many fresh sales into this market in the near future, especially at these weaker prevailing levels.

Source : Strategic Research Institute
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Shocking Details Emerge about Assault on SAIL Chairman Last Month

Indian Express reported that Delhi police, a month after Steel Authority of India Limited chairman Mr Anil Kumar Chaudhary was assaulted by armed men, have established that it was a premeditated attack over a deal not going through. The special task force of the Crime Branch has arrested a 62-year old private contractor, Ashok Kumar Singh, for allegedly hiring the men to attack Chaudhary. A police officer told Indian Express “On September 6, police arrested Ashok Kumar Singh, a private contractor who deals in coking coal in connection with the attack, which took place at South Delhi’s August Kranti Marg. Investigation revealed it was a premeditated attack after Mr Chaudhary refused to go through with a coking coal deal with the son of the accused. The intention was to intimidate the SAIL chief.”

Mr Chaudhary told The Indian Express, “I have been maintaining that this was not a case of robbery or road rage but a conspiracy to kill me. And it has been proved with their arrest. But I am shocked that he is released on bail. My family members and I are now scared.”

DCP (Crime Branch) Dr Ram Gopal Naik said, “Singh was arrested Friday from his residence in Vasant Kunj, and was in police custody for three days. He was produced before a court Monday, and released on bail.”

During questioning, Mr Singh is learnt to have told police that his son has a coking coal company in Sharjah and that he had struck a INR 100 crore deal with SAIL in 2018. A senior officer probing the case said “He claimed the contract was signed and the consignment arrived from the US at two ports, Haldia and Visakhapatnam, but it was rejected due to poor quality twice, by a committee headed by Chaudhary. He claimed SAIL had paid the first installment of INR 30 crore, but unhappy with the quality of coking coal supplied, the payment was later cancelled. Singh claimed Chaudhary did not give permission for the consignment to be accepted, so he decided to teach him a lesson. Then, he allegedly asked for an attack on Chaudhary, so that he would have to take a break from work due to the injuries, and someone else would clear the deal. He allegedly struck a deal at INR 50 lakh with Balhara, who then asked Kadyan to hire criminals. Kadyan hired four men with criminal history, promising them INR 6 lakh.”

Police said Kadyan did not share the exact plan with them and kept the profile of the intended target to himself. He only told the men that a man returning from office had to be robbed. He asked them to kill him if he resisted, and gave them a pistol. He also gave them INR 2 lakh in advance. On the night of August 8, Chaudhary was attacked by the four men who barged into his car and asked for compensation. When Chaudhary resisted, the men assaulted him and his driver with iron rods. Balhara and Kadyan were sitting in their car a few meters away

Two men, Lalit and Amarjeet, were arrested from the spot on August 8 when four police personnel came to Chaudhary’s aid during the assault. Police later arrested two more accused, Omparkash and Pravesh, who had fled. On August 23, the case was transferred to the Crime Branch, which arrested Sunil Balhara, a property dealer, and his brother-in-law Satendra Kadyan, who allegedly hired the four criminals.

Source : Indian Express
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Huta Czestochowa Workers Picket outside Courthouse

Embittered by the court's decision, employees of the failing Huta Czestochowa do not give up. On Monday from the morning they gathered under the building of the Czestochowa court, where they are asking for help for the employer "We want to work - stop debating." They are embittered by the decision the court made last week.

At the end of the week, Cognor entered the game , but the court did not agree with this offer. Instead, he decided that the bankruptcy was to be declared bankrupt and appointed a receiver in bankruptcy.

Source : Money.pl
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Indian Small Steel Makers Cut Output - Report

ET reported that Secondary steel producers are cutting back on output to cope with a demand slump. In the iron ore rich district of Ballari in Karnataka, at least eight plants that include secondary steel makers like BMM Ispat, Rayen Steel, PGM Ferro Steel and companies such as Mukand and Kalyani Steel primary suppliers to the auto sector have scaled back production. Subdued construction demand is also a trigger for such cutbacks. Mukand's Hospet (Karnataka) facility has scaled back production by about 15-20% in the last three months. Inventories have increased substantially over normal levels. Kalyani Steels has had to cut production by as much as 40% over the same period, said a company official on the condition of anonymity.

Many producers ET spoke with said more cuts could be in the offing if demand does not improve.

Mr Deependra Kashiva, executive director at the Sponge Iron Manufacturers Association said that “Standalone plants producing sponge iron and pellets and with capacity less than 0.2 million tonnes have been badly affected. However, other plants like Tata Long Products and Godawari Power and Ispat that produce more of value-added products can survive the slowdown.”

Mr Ranjan Dhar, chief marketing officer at Essar Steel said that “Domestic demand has to improve as export opportunities are also shrinking. The industry will not be able to wait for more than one more quarter before deciding to take production cuts. Construction demand typically slows in the monsoon quarter, and this season has been among the rainiest, with at least nine states seeing repeated instances of flooding. According to an industry source, JCB, that produces earth moving equipment for construction, had sold close to 5,500 machines last year during the period between July and August, while this year it sold only 1,500 machines."

Source : Economic Times
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Steel Import Monitoring may Hit Engineering Exports - EEPC India

UNI reported that in a letter to the Commerce Minister, EEPC India chairman Mr Ravi Sehgal said that in the name of monitoring, the latest restrictions on import of steel products, critical raw material for the engineering industry’, would further add to the input cost of exporters battling deceleration in shipments.

DGFT notification of September 5, 2019 has mandated compulsory registration for import of most of the steel products ( under Chapter 72 and few products under Chapter 73 and 86 of ITC (HS). It states that an importer can apply for arrival of consignment. For such registration, specific registration fee has also been specified. While it is believed that this system has been brought in on the lines of the United States’

Source : UNI
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ArcelorMittal Kryviy Rih to Pay USD 433 Million to Parent

RFE/RL reported that ArcelorMittal and located in Ukraine, is planning to move USD 433 million out of the country to pay dividends to its parent company. In a filing to the National Securities and Stock Market Commission dated September 6, the steel mill, based in Kryviy Rih in southern Ukraine announced that it will hold an extraordinary shareholders' meeting on October 10 to vote on the payout.

The decision comes as the company faces two probes that were started in July after Zelenskiy was elected president. One relates to alleged pollution issues that the company denies and USD 360 million in unpaid taxes.

It paid USD 350 million last year and USD 190 million in the first six months of this year in taxes. In 2018, the mill reported USD 380 million in earnings.

Source : RFE/RL
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Steps Will Be Taken To Save SAIL SSP – Tamil Nadu BJP

Hindu reported that Bharatiya Janata Party State general secretary Ms Vanathi Srinivasan said that the State unit of the party would take all necessary steps to save Salem Steel Plant and its employees. Ms Srinivasan was in Salem on Sunday and she held discussions with the SSP employees who are protesting against privatisation of the Plant. She told presspersons that “The Centre is trying to make several PSUs profitable through disinvestment and Salem Steel Plant is one among them. We recently met Union Minister for Steel Dharmendra Pradhan on this regard.”

Ms Srinivasan said that “The Union Minister, who heard our grievances, reduced the cost of raw materials and sanctioned a separate marketing division for the SSP that was earlier part of SAIL. He has also promised that there would not be any job cuts and the welfare of employees would be protected.”

Source : Hindu
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Iran to Imposes 25% Tariff on Export of Raw Ore

Press TV reported that Iran is imposing a heavy tariff on exports of raw ore to prevent mass shipment of low-price pellets and concentrates that could harm a thriving steel industry in the country. A deputy to Iran’s minister of industries said that exports of all raw minerals will be slapped with a 25% tax as of 23 September, 2019. Mr Ja’far Sarqini said the tariffs would cover various products of Iran’s iron mills, including iron ore and concentrates. He said the tax is aimed to protect the domestic steel industry which uses raw ore in massive quantities. He added that “This decision is to be implemented with the aim of preventing sale of raw minerals and creating more added value inside the country."

Iran has carried out massive investment in the steel industry over the past years. The country is currently among the 10 leading steel producers in the world with around 35 million tons of annual output.The country exported over seven million tons of steel in the year ending in March 2019, according to government data.

Source : Press TV
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