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JM Steel to Put Slitting Lines at Steel Dynamics mill at Sinton in Texas

JM Steel recently announced a colocation on the Steel Dynamics Inc site in Sinton. Frank Calandra Inc and Calandra Group LLC Group President Tony Calandra said “JM Steel will be expanding its footprint substantially over the next two years! Steel Dynamics Inc has invited us to be part of their newest flat roll steel mill located in Sinton in Texas, just outside of Corpus Christi. The new mill will target regional market place driven by manufacturing, automotive, construction, transportation, and energy markets. The new Sinton mill will have an estimated annual capacity of 3.0 million tons, and boast Next Generation electric arc furnace technology.”

JM Steel's facility has plans to include three slitting lines capable of producing 30,000 tons of steel a month. Our first line will have capabilities of .500" x 84" @ 80,000 psi, with thickness ranging from .050" - .500". The slitter will be able to handle 105,000 lbs max coil weights and run up to 400 fpm. With these characteristics JM Steel will have the largest, most capable slitter in the United States. The plant and the slitter will be operational by June 30th, 2021. Plans in years three and four include lighter gauge slitter capabilities and additional value added services like laser cutting and press braking capabilities. The new facility will also boast two roll forming lines and a stamping press capable of producing 260,000 bolts per month to serve mining markets located in Mexico, Honduras, Costa Rica, Chile and Peru.

The new location gives JM Steel Sinton excellent export opportunities to supplement its core ground control business of JENNMAR.

Source : Strategic Research Institute
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US Steel Signs Long-Term Iron Ore Sales Agreement with Algoma Steel

United States Steel Corporation announced a four-year agreement to sell substantial volumes of quality iron ore pellets to Ontario in Canada based Algoma Steel Inc. The purchase agreement, which runs from 2021 through 2024, provides incremental volume and a new long-term iron ore customer for US Steel’s Minnesota mines.

This is the second significant iron ore purchase agreement US Steel has finalized in 2020. The other agreement announced on April 30, 2020 included another party’s option to acquire a 25 percent interest in the Company’s Minntac iron ore operation for an implied enterprise value of USD 2.4 billion for the Minntac operation. The contracts advance US Steel’s commitment to extract incremental value from the company’s iron ore assets as part the Company’s best of both strategy which was announced October 1, 2019.

Source : Strategic Research Institute
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Turkey Imposes Additional Duties on Steel Imports

Turkish media reported that Turkey has imposed up to 14% additional duties on several types of steel imports to prevent a rise in steel imports into the country. As per reports “Imports of hot-rolled flat steel will be subject to 14% additional import duty until 30 September 2020, while a 10% additional import duty will be applied to cold-rolled flat steel and . 10%-11% additional import dutyon alloy steel wires, tubes and pipes.

These rates are set to be reduced in October, with the additional duty on hot-rolled flat steel decreasing to 9%, down from the initial 14%. Cold-rolled flat steel will be subject to a 5% additional import duty, down from 10% and alloy flat steel imports will be subject to a 6% import duty down from 11%. Alloy steel wires, tubes and pipes will be subject to 5% additional duty in October, down from 10%.

Turkey's flat steel imports between January and March 2020 totalled around 1.821 million tonnes. These figures represent an increase of 24.73% from the 1.460 tonnes imported in the first quarter of 2019.

Source : Strategic Research Institute
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ArcelorMittal to Supply Steel for Atlético Mineiro's New Stadium

ArcelorMittal was contracted to supply the steel solutions that will be used in the construction of the MRV Arena, the Clube Atlético Mineiro stadium that begins to be built in Belo Horizonte. The work will consume approximately 10,000 tons of long steel that will be used in foundations, support structures and in large prefabricated pieces in reinforced and prestressed concrete. ArcelorMittal was chosen as a supplier of long steel due to the quality and offer of exclusive products required by the project.

Currently, the work is in the preparation phase of 114,600 square meters of land, in the California neighborhood, in the capital of Minas Gerais. Steel deliveries are scheduled to begin in May 2020 and will be on demand during the 30 months of construction. The steel will be used directly in the construction of the MRV Arena, in charge of Racional Engenharia, in the prefabricated elements of reinforced and prestressed concrete of the Arena structure, the terrace and the parking lot, which will be produced by the company Precon Pré-Fabricados, and in metallic structures of the roof and the porches of the stands to be assembled by Codeme.

The Galo stadium is among the largest civil engineering works in progress in brail. It is a multipurpose arena, with a capacity for 46 thousand spectators, and aligned with the most modern world concepts for large sports buildings. The project, from the architecture firm Farkasvölgyi, in Belo Horizonte, foresees, in addition to the stands, 68 cabins, two lounges, 40 bars, 50 bathrooms and covered parking with 2,500 spaces. The terrace will be open to the population and will have a public nursery and health post.

For the work, ArcelorMittal will provide rebars, screens, profiles and trusses, in addition to exclusive strings produced by Belgo Bekaert, a subsidiary of ArcelorMittal, to be used by Precon Prefabricados in reinforced and prestressed concrete structures (with high tensile strength) , and that will allow the assembly of the large free spans foreseen in the project.

Source : Strategic Research Institute
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Bayou Steel Laid Off Workers sue Hedge Fund Owner

NOLA reported that a group of former Bayou Steel employees is suing the former owners of the LaPlace plant, alleging they deliberately reneged on an employment contract without warning before shutting down the plant last year.
Their lawsuit alleges that Black Diamond and its owner, Stephen Deckoff, had negotiated a new employment contract with steelworkers in bad faith, knowing for some time before it signed the contract in late September that it planned to shut the plant just a few days later.

The 40-year-old steelworks, which specialized in recycling scrap steel, was forced into Chapter 11 bankruptcy in September by its beneficial owner, the Connecticut-based hedge fund Black Diamond Capital Management. The company laid off 376 workers at the LaPlace plant. Another 100 employees at three other operations around the country were also laid off.

Black Diamond is a USD 9 billion hedge fund that specializes in buying the debt of companies that are in financial trouble. It first acquired Bayou Steel in 2003 for about USD 185 million, including about USD 30 million in debt, after the steelmaker had fallen on hard times. It sold it five years later to Arcelor Mittal for USD 475 million and then bought it back again at a steep discount in 2016. In the years before bankruptcy, Black Diamond cut costs, including reducing the workforce by about one-third. When it was forced into Chapter 11 bankruptcy Bayou Steel owed up to USD 100 million to around 2,000 creditors, including local suppliers and service providers, and had less than USD 50,000 in liquid assets available. The main assets of the company were sold in January for USD 28 million to Liberty Steel Group, leaving little for most of Bayou Steel's creditors.

Source : Strategic Research Institute
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New Iron Ore Inspection Rules won't harm Australia

Australian government has talked down the potential impact new Chinese customs inspections could have on the iron ore industry. Trade Minister Simon Birmingham said "Early indications of talking to the industry are indeed that this would provide an opportunity for benefits both to China and to Australia. We welcome any improvements in administrative arrangements that could streamline the customs clearance of iron ore imports."

Chinese customs officials say the changes taking effect next month are designed to streamline procedures at ports. But the Global Times, considered a media voice of the Chinese government, has warned Australian iron ore imports could be hurt by political tensions between the two countries.

Source : Strategic Research Institute
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Donalam Calarasi Commissions Steel Bar Heat Treatment Line

Italian group Beltrame’s Donalam Calarasi in Romania has completed the 4 million euros investment in a special steel bar treatment equipment. This will allow the company to offer steel bar products with increased added-value through treatment and finishing and focus on customized orders. This will allow the development of high quality products, targeting also industry sectors with very high standards. In the medium term, the goal is to qualify for the IATF16949 standard in the automotive industry and to develop our products on this market.

Donalam produces hot rolled steel in round profiles, with diameters between 80-320 mm. These profiles are used in industries such as oil & gas, agricultural machinery and equipment, large mechanical equipment and hydraulic equipment. Through commercial partnerships with leading companies from GMH of Germany and Voestalpine of Austria, Donalam’s products are distributed throughout most of Europe. Donalam had a turnover of 78 million euros and a sales level of 106,000 tonnes in 2019. The company currently employs approximately 270 employees.

Source : Strategic Research Institute
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Bisalloy and Rheinmetall Teaming Agreement Extended

Bisalloy Steel Group announced the extension of its longstanding teaming agreement with Rheinmetall Defence Australia for the further development and production of high performance armour steel for military vehicles. This steel is to be used for Rheinmetall’s Australian manufactured BOXER 8×8 Combat Reconnaissance Vehicles, for export customers and specifically, once certified by the German Government, used as a source of supply for Rheinmetall in Germany. Rheinmetall and Bisalloy are currently working together in Australia and Germany to create specialised grades of BISALLOY Armour Steel for application on the BOXER 8×8 Combat Reconnaissance Vehicles to be delivered to the Commonwealth of Australia’s LAND 400 Phase 2 program. Bisalloy’s new armour steel is in the final stages of German Government qualification process.

Bisalloy is two years into the development of new grades of armour steel in order to meet the exacting protection levels required for each BOXER 8×8 CRV. Once certified, Bisalloy steel will produce the best protection for Australian soldiers to ensure they survive and win in combat.

Bisalloy is also working closely with Rheinmetall as part of the company’s offer, the LYNX KF 41 Infantry Fighting Vehicle, for the aUD 10 billion LAND 400 Phase 3 program and the supply of more than 400 IFVs to the ADF.

Australia’s only manufacturer of impact resistant, armour and protection grade steels, Bisalloy has a long history of collaboration with the ADF. Developed in the 1980s for use in the hulls of the Royal Australian Navy’s Adelaide Class Frigate, BISALLOY Armour steel has since been used in several other local defence projects, including the Bushmaster Infantry Mobility Vehicles.

Source : Strategic Research Institute
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Posco joins Responsible Minerals Initiative

Posco has become the first South Korean steelmaker to join the Responsible Minerals Initiative. Posco said it will be able to manage procurement and supply network responsibly under the guidance of RMI, and access information related to the country of origin of the minerals, and solutions and mechanisms to identify and reduce risks in the mineral supply chain. By joining RMI, Posco said it seeks to expand its attention to illegal labor issues, including forced and child labor, and environment-related agendas for responsible sourcing.

The RMI, which was founded by members of Responsible Business Alliance and the Global e-Sustainability Initiative in 2008, is a global consultative group of companies from a range of industries, addressing responsible mineral sourcing in supply chains. About 380 companies, including Apple, Tesla and Samsung Electronics, are members of the initiative.

Source : Strategic Research Institute
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JENNMAR to Resume Production in Canada in 2021

JENNMAR has completed its feasibility study concerning ground support to the Canadian market place and anticipates having its first production facility operational by March 31, 2021. Trent Roberts and David Hurd will be leading this exciting transition back in to Canada bringing a full portfolio of ground support options. Frank Calandra Inc and Calandra Group LLC Group President Tony Calandra said “JENNMAR has completed its feasibility study concerning ground support to the Canadian market place. We anticipate having our first production facility operational by March 31, 2021. David Hurd has been mandated to lead the project. David brings with him more than 30 years executive level management experience. David is recognized for his extensive knowledge in construction and mining markets and his ability to develop customer relations, create growth, and build strong teams.”

He said “Trent Roberts will liead up the initial ground support engineering and assist prospective Canadian mines in achieving optimal results with their ground support techniques and challenges. Trent contributes over 20 years experience to the mining industry. Trent's responsibilities are broadly divided between managing Geo-technical, product/business development, and sales support to JENNMAR Australia & US Hardrock and JENNMAR related joint ventures in China and Mongolia. Rocky Wu, a former jENNMAR Geo-technical engineer, will help assist Trent with Geo-technical plans and product specifications.”

JENNMAR anticipates bringing its full portfolio of ground support options to the Canadian market place. We look forward to reaching out and helping our past customers who gave us our start in Canada in 2008.

Source : Strategic Research Institute
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Mondiale staalproductie daalde hard in april

FONDS KOERS VERSCHIL VERSCHIL % BEURS
ArcelorMittal
8,165 -0,18 -2,16 % Euronext Amsterdam
Bekaert
17,30 0,12 0,70 % Euronext Brussel

(ABM FN-Dow Jones) De mondiale staalproductie is in april hard gekrompen, door sterke afnames wereldwijd, behalve in China. Dit bleek vrijdag uit cijfers van brancheorganisatie World Steel Association.

In totaal maakten de 64 staalproducerende landen in de afgelopen maand 137 miljoen ton staal, een daling van 13 procent op jaarbasis.

In China, wereldwijd met afstand de grootste fabrikant van staal, steeg de productie in april nog wel, met 0,2 procent tot 85,0 miljoen ton.

In de EU daalde de productie echter met bijna 23 procent tot 10,7 miljoen ton en ook de Japanse productie daalde met 23,5 procent tot 6,6 miljoen ton.

De Verenigde Staten produceerden 32,5 procent minder staal in april dan een jaar eerder. In totaal ging het om 5,0 miljoen ton.

In Brazilië daalde de productie zelfs met 39 procent en in Turkije met 26 procent. Ook in de voormalige Sovjet-Unie kelderde de productie, met 23 procent tot 6,55 miljoen ton.

Door de problemen rond de coronaviruspandemie zijn veel cijfers over april nog voorlopig en zullen mogelijk volgende maand worden bijgesteld, tekende de WSA daarbij aan.

Door: ABM Financial News.
info@abmfn.nl
Redactie: +31(0)20 26 28 999

© Copyright ABM Financial News B.V. All rights reserved.
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Work Starts on Windpark Salzgitter

Work has now officially started to construct the seven turbines comprising the Windpark Salzgitter. Three will be erected on the site of the integrated steelworks operated by Salzgitter Flachstahl GmbH, with four more on the surrounding Group premises. The developer and operator of the park is Avacon Natur GmbH, a wholly-owned subsidiary of Avacon AG. The hubs of the turbines built by Vestas will reach a height of 169 meters. They will have an overall output of around 30 MW. The cost of the project as a whole, including the construction of the wind turbines and the hydrogen plant as well as the necessary infrastructure, amounts to around 50 million euro.

The turbines are another building block in the pioneering Salzgitter Wind Hydrogen energy project, the purpose of which is to produce green hydrogen for use in steel production. Also in the course of this year, Salzgitter Flachstahl will be building a PEM Electrolysis plant to be supplied by Siemens. The hydrogen can be used in the reduction of iron ore in place of the usual carbon. It therefore plays an important role in the SALCOS – Salzgitter Low CO2 Steelmaking” concept and contributes to the goal of low-CO2 steel production.

Works in preparation for the seven turbines began back in January, starting with access roads and areas for cranes and construction machinery. The turbines are scheduled to be completed in autumn 2020. The construction site is located on Salzgitter Group premises. Access is not permitted for safety reasons.

Source : Strategic Research Institute
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Global Crude Steel Production in April 2020 Shrinks by 13%

World crude steel production for the 64 countries reporting to the World Steel Association was 137.1 million tonnes in April 2020, a 13.0% decrease compared to April 2019. China produced 85.0 million tonnes of crude steel in April 2020, an increase of 0.2% compared to April 2019. India produced 3.1 million tonnes of crude steel production in April 2020, down 65.2% on April 2019. Japan produced 6.6 million tonnes of crude steel in April 2020, down 23.5% on April 2019. Production in the EU is estimated to be 10,729.0 million tonnes in April 2020, down 22.9% on April 2019. The US produced 5.0 million tonnes of crude steel in April 2020, a decrease of 32.5% compared to April 2019. Production in the CIS is estimated to be 6,554.0 million tonnes in April 2020, down 22.6% on April 2019.

Zie lijst in de bijlage (pdf)

Worldsteel said “Due to the ongoing difficulties presented by the COVID-19 pandemic, many of this month’s figures are estimates that may be revised with next month’s production update.”

Source : Strategic Research Institute
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JSW Steel Announces Q4 and 2019-20 Results

JSW Steel Limited has reported its results for the Fourth Quarter and the Financial Year ended 31st March, 2020. JSW Steel said “The fourth quarter performance of the Company was marked by the emergence of the Covid-19 pandemic and measures to curb its rapid spread. The Indian economy was severely impacted by the temporary closure of economic activities across the country after the announcement of the first phase of nationwide lockdown in the last week of March 2020. With a significant supply chain disruption and with a view to ensure safety of workforce across all areas of operations, the Company scaled down orsuspended production across all facilities around this time period. FY2019-20 turned out to be a year of two halves for the steel industry - with a weakened demand and subdued pricing environment in the first half of the year, and an improving business and consumer sentiment, with higher demand and pricing, during the second half of the year, deflated largely by the impact of COVID-19, especially, towards the end of March 2020.”

FY2020 Standalone Performance:
Revenue from operations: INR 64,262 crores, lower by 17%YoY
Operating EBITDA: INR 12,517 crores, lower by 32%YoY
Net profit after tax: INR 5,291 crores, lower by 35% YoY

JSW Steel Coated Products: During the quarter, JSW Steel Coated Products registered a production volume of 0.44 million tons and sales volume of 0.47 million tonnes. Revenue from operations and Operating EBITDA for the quarter stood at INR 2,915 crores and INR 91 crores respectively. It reported a Net Profit after Tax of INR 19 crores for the quarter.

US Plate and Pipe Mill: The US based Plate and Pipe Mill facility produced 63,528 net tonnes of Plates and 15,193 net tonnes of Pipes, reporting a capacity utilization of 27% and 11%, respectively, during the quarter. Sales volumes for the quarter stood at 55,274 net tonnes of Plates and 27,534 net tonnes of Pipes. It reported an EBITDA Loss of USD 9.90 million for the quarter.

JSW Steel USA Ohio Inc (Acero): The US based HR coil manufacturing facility produced 73,138 net tonnes of HRC during the quarter. Sales volumes for the quarter stood at 72,888 net tonnes. It reported an EBITDA loss of USD 20.19 million for the quarter.

JSW Steel (Italy) S.r.l. (Aferpi): The Italy based Rolled long products manufacturing facility produced 113,244 tonnes and Sold 127,961 tonnes during the quarter. It reported an EBITDA loss of 10.91 million Euros for the quarter.

Source : Strategic Research Institute
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Tata Steel Running at 50% Capacity

Times of India reported that Tata Steel CEO and managing director Mr TV Narendran during a video conference with the company’s vendors and the owners of ancillary units last week said “The ongoing lockdown has necessitated the company to run the plant with 50% capacity but this has brought about an improvement in our efficiency.”

He added “Demand from the domestic market is mostly coming from the healthcare, furniture, oil and gas sectors. The demand from automobile and construction sectors, which form the bulk of our demand, is currently very low.”

Source : Strategic Research Institute
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SAIL RSP Issues FAC for Plate Heat Treatment Line

Steel Authority of India Limited’s Rourkela Steel Plant has issued Final Acceptance Certificate for the Roller Hearth Plate Quench and Temper system supplied by CAN-ENG Furnaces International Ltd. The system is designed to heat treat a wide range of plates from 6 mm to 100 mm thickness x 3,000 mm wide and lengths up to 13,000 mm long in a wide variety of grades for commercial and non-commercial applications. With an overall line length of 122 meters and a restrained roller spray quench at the heart of the system, the heat treatment process results in true flat plates with metallurgical properties that exceed the contractual requirements. The auto-recuperative radiant tube fired atmosphere Roller Hearth Hardening Furnace and direct Fired Temper Furnace run off Coke Oven Gas.

The entire line operations are controlled via CAN-ENG’s Level II Automation technology and incorporate a dual hot redundant PLC system as well.

Source : Strategic Research Institute
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Sponge Iron Manufacturers Association in Seek 30% Duty on Iron Ore Pellet Exports

Economic Times reported that Chhattisgarh Sponge Iron Manufacturers’ Associationin a letter to the Prime Minister’s Office said “To ensure normalcy in production for secondary steel producers, we recommend a levy of 30% export duty on iron ore pellets This is to also maintain uniform policy for all types of high-grade iron ore fines. Iron ore fines are discouraged from being exported and there should be a similar policy for iron ore pellets.”

ET also quoted a sponge iron makers as saying “With 30% export duty on iron ore fines: large steel players are likely to get it at a reasonable rate. But iron ore pellets attract zero export duty and we cannot procure it at a reasonable rate.”

However, Pellet Manufacturers Association of India president Mr Manish Kharbanda said importing scrap would be cheaper even with export duty on pellets. He said "Only 6-7% pellet manufacturers in India are exporting, the rest are available for domestic consumption. Besides iron ore lumps are preferred over pellets because sponge iron produced using lumps sell for a better price. Thus, pellets can be easily exported.”

Source : Strategic Research Institute
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China Steel Corp Announces Price Changes for July & Q3

On May 22nd, 2020, China Steel Corporation held a price meeting for domestic sales in the third quarter and July of 2020 and announced price adjustments for July 2020 and july-Septemer quarter. CSC said “This quarter, CSC would keep prices adjusted on monthly / quarterly bases to meet global practices. CSC also offers multi-measures to satisfy diversified demands of downstream industries. CSC lifts listed prices for July by 1.87% while reduced Q3 listed prices by -2.05% in accordance with industry characteristics.”

Source : Strategic Research Institute
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Demand for Steel for Gas Pipes to Pick up in H2 of 2020-21

Business Standard reported that GAIL India is processing line pipe tenders of more than INR 1,000 crore for around 100,000 tonne steel procurement by September 2020. This would translate to progressive supply of 800 kilometre of line pipe from domestic bidders. This quantity is expected to be doubled by the end of current financial year to move towards a self-reliant India. Indradhanush Gas Grid is processing line pipe tenders of more than INR 950 crore for around 73,000 tonnes steel procurement by July, 2020 for progressive supply of 550 Km line pipe from domestic bidders. This quantity is expected to be doubled by the end of current financial year. Indian Oil has approximate 165,000 tonne of steel pipes require,ment for implementing a 1,450-km-long natural gas pipeline project in southern India

Union minister for petroleum and steel Dharmendra Pradhan took a review meeting of INR 8,000 crore worth of projects last week.

Source : Strategic Research Institute
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US DoC Asks for Public Input on Section 232 Steel and Aluminum Exclusion Process

The US Department of Commerce’s Bureau of Industry and Security is seeking public comments on how to improve the exclusion process for tariffs and quotas imposed on steel and aluminum imports under Section 232 of the Trade Expansion Act of 1962. The notice of inquiry, which went on public display today at the Federal Register, states that BIS will accept comment submissions from May 26, 2020 through July 10, 2020. US Commerce Secretary Wilbur Ross said “The Department of Commerce is continually looking for ways to improve the exclusion process for Section 232 tariffs and quotas. We want these critical national security measures to be applied effectively while avoiding unnecessary impacts on downstream American industries.”

Since the tariffs and quotas for steel and aluminum were instituted in 2018, Commerce has developed a process for manufacturers to request exclusions from the tariffs and quotas if those products cannot be produced in a sufficient quantity or quality in the U.S. or for national security reasons. The exclusion process also allows domestic steel and aluminum producers to object to an exclusion request by demonstrating they can provide the steel or aluminum item subject to the exclusion request, in a satisfactory quantity and quality. The Department conducts a thorough analysis of each exclusion request, objection, rebuttal, and surrebuttal it receives. This analysis assesses, on a case-by-case basis, whether the article at issue is produced in the United States in a sufficient and reasonably available amount and of a satisfactory quality. All decisions are available on publicly available websites.

In the notice of inquiry, BIS is seeking public input on a number of topics related to the exclusion process including the appropriateness of the information requested and considered in applying the exclusion criteria and the process employed in rendering decisions on requests for exclusions.

Source : Strategic Research Institute
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