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Labour Party Seeks to Protect Steel Sector in UK

Morning Star reported that UK’s opposition Labour Party was to stage a Commons vote today to kill off plans to end protections for steel industry in UK, after the government was accused of dealing a hammer blow to the struggling industry. Labour party warned that UK’s steel sector could be exposed to a flood of cheap imports after the Trade Remedies Authority recommended that Trade Secretary Ms Liz Truss end protections inherited from the European Union. Labour Party hopes that its motion, calling for emergency legislation to extend the safeguards, will be backed by Tory backbenchers in former red wall seats keen to protect an industry that directly employs 33,700 people in Britain.

Shadow International Trade Secretary Ms Emily Thornberry said the government is on the verge of selling out Britain’s steel industry. She said “Any MP who represents a steel community should vote for this motion. Any MP who cares about the UK’s economy, our industries, our critical infrastructure, our national security, and protecting the tens of thousands of jobs that depend on steel should vote for this motion. The Tories have already betrayed British farmers and now they are preparing to do the same to British steelworkers. We cannot let that happen.”

British steel industry association UK Steel Director General Mr Gareth Stace said “The TRA’s decision is a hammer blow. The government is squandering the opportunity to make Brexit work for domestic industry, it is levelling down our steel sector.”

A government spokesperson said “The TRA is a non-departmental public body and all its decisions are based on a thorough analysis of the evidence. The Trade Secretary’s decision will be published before the measure is due to expire on June 30.”

The EU introduced limits on imports in 2019 after former US president Donald Trump imposed tariffs on Chinese steel, prompting fears of a surplus impacting Europe. When Britain left the EU, the limits were carried over, but they will lapse at the end of this month. The EU has already confirmed it will extend its protections until June 2024.

Following a review, UK’s Trade Remedies Authority has published its final recommendation to UK’s Secretary of State for International Trade on the future of the UK’s steel safeguard measure in mid June. After reviewing available evidence, the independent body has recommended the extension of the UK steel safeguard measure across 10 product categories for a further three years and the revocation of the measure across nine product categories.

Non Alloy Wire

Non Alloy and Other Alloy Wire Rod

Stainless Wire Rod

Non Alloy and other alloy cold finished bars

Stainless Bars and Light Sections

Angles, Shapes and Sections of Iron or Non Alloy Steel

Non Alloy and Other Alloy Merchant Bars and Light Sections

Non Alloy and Other Alloy Quarto Plates

Tin Mill products

Source - Strategic Research Institute
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Nippon Steel Sells Stake in Spanish Stainless Steel Maker Acerinox

Nippon Steel said that it had sold a 7.9% stake in Spanish stainless steel maker Acerinox for 218 million euros through a private placement. The stake was sold at 10.2 euros per share, which represented a discount of 5.7% from Acerinox’s Thursday closing price. After completion of the placement, Nippon Steel owns 21.4 million shares of the company, representing approximately 7.9% of the capital, as reported by UBS, the placement financial entity, to the National Securities Market Commission.

The company had said 10 months ago that its stake in Acerinox was financial, that is susceptible to being sold

Acerinox is manufacturing of stainless steels and nickel alloys with a presence on the five continents, factories on four continents and supplying to customers in 81 countries. Acerinox has three fully integrated flat product production factories the Campo de Gibraltar factory in Spain, North American Stainless in Kentucky in US & Columbus Stainless in Middelburg in South Africa. In March 2020, Acerinox completed the purchase of VDM Metals, thus becoming the Group’s newest company. VDM Metals is a global leader in the development and manufacture of special nickel alloys and high performance stainless steels.

Source - Strategic Research Institute
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Hoa Phat Profits to Improve on Firm HR Demand in Vietnam

VNS reported that Viet Dragon Securities Corporation in a recent report said that hot rolled coil plays an important role in Hoa Phat Group’s business activities as the steel producer is benefiting from higher HRC prices and strong demand from galvanised steel exporters. VDSC believes that Hoa Phat will not face any difficulties in consuming all output despite the selling price tending to be higher than that of some Chinese factories. It said “This is due to strong demand for HRC from domestic exporters of coated steel sheets. Steel companies are receiving large orders from the EU and North American markets, which have banned China's HRC. To meet the origin requirements of the base steel, domestic manufacturers of coated steel sheets mainly use HRC from HPG, Formosa, or India.”

VDSC expects Hoa Phat to sell about 690,000 tonnes of HRC (both internal and external) in the third quarter, up about 4 per cent compared to same period last year. However, the gross profit margin of the construction steel segment may decrease due to weak demand and increased production costs.

VDSC forecasts the company’s profit after tax will be about VND10.2 trillion in the second quarter of this year and fall to VND8.9 trillion.

Source - Strategic Research Institute
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2 Accidents at Steel Mills in Raigarh & Jalna Injure 15 Workers

PTI reported that 5 employees of JSW Ispat Special Products Limited at Naharpali in Chhattisgarh's Raigarh district suffered burn injuries on Sunday after hot ash fell on them during work. The incident occurred around 1.30 PM when victims were engaged in clearing a dust settling chamber there that had got blocked. The workers were putting water with pressure to clear the chamber, during which it suddenly got opened and hot ash spilled on them causing burns. The injured were immediately shifted to a private hospital. Police has reached the incident site and investigation is underway

PTI also reported that a boiler exploded and hot molten iron fell on workers at Sapashrungi Steel Mill in Maharashtra Industrial Development Corporation area in Jalna. Four workers were admitted to a hospital in Jalna while six were shifted to Aurangabad for treatment. A case is registered against the manager of the company for alleged negligence and further probe is on.

Source - Strategic Research Institute
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Steel Dynamics Improves Guidance for Second Quarter of 2021

US steel maker Steel Dynamics Inc has provided second quarter 2021 earnings guidance in the range of USD 3.26 to USD 3.30 per diluted share. Excluding the impact from costs associated with the construction of the company's Sinton Texas Flat Roll Steel Mill growth investment of approximately USD 23 million, the company expects second quarter 2021 adjusted earnings to be in the range of USD 3.34 to USD 3.38 per diluted share, which would represent record quarterly earnings for the company. Comparatively, the company's sequential first quarter 2021 earnings were USD 2.03 per diluted share, and adjusted earnings were USD 2.10 per diluted share, excluding the impact of construction costs related to the Texas steel mill of USD 0.07 per diluted share.

Second quarter 2021 profitability from the company's steel operations is expected to be significantly higher than first quarter results setting a new quarterly record, driven by strong underlying steel demand and significant metal spread expansion across the entire platform, but most pronounced within the flat roll steel operations. Second quarter 2021 steel shipments are expected to increase sequentially across the company's steel portfolio, potentially achieving record quarterly volume. Domestic steel demand remains strong, with the automotive, construction, and industrial sectors continuing to lead the momentum. Order entry continues to be robust as strong demand, coupled with continuing historically low flat roll steel inventories underpin elevated steel selling values. The company believes this momentum will continue, resulting in even stronger third quarter results.

Ferrous scrap demand also continued to be strong in the second quarter, as domestic steel production continued to improve. Second quarter earnings from the company's metals recycling operations are expected to be aligned with strong sequential first quarter results based on steady shipments and increased pricing.

Second quarter 2021 earnings from the company's steel fabrication operations are expected to be significantly higher sequentially, as higher prices and expected record quarterly shipments more than offset higher steel input costs. The non-residential construction sector remains strong as evidenced by continued robust order activity, resulting in a record order backlog and record forward-pricing for the company's steel fabrication platform. The company anticipates this momentum to continue through the remainder of the year based on these dynamics.

Source - Strategic Research Institute
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GMS Market Commentary on Ship Breaking in Week 24

World's leading cash buyer of ships for recycling GMS said that “All fiscal budgets in the Indian sub-continent markets have been announced in the past month or so, without any duties or taxes being levied on their respective domestic ship recycling sectors and this has left all areas positively positioned moving into the summer & monsoon months. Of late, a marginal slowdown in the flow of fresh tonnage has given the sub-continent markets a bit of a breather, to regain their appetite and momentum ahead of a renewed push, at ever increasing and impressive numbers. Levels well into the USD 500s/LDT seem here to stay across the sub-continent markets for the time-being and for the foreseeable future as well, especially as steel plate prices remain relatively firm across the board and demand remains strong for any available units, mostly in the tanker and offshore categories.

Finally, the Turkish market remains steady, with a marginal decline in imported steel reported this week. Yet, levels and demand, both hold firm.

GMS added “The Covid-19 situation continues to cause concern, particularly in India, although case numbers and fatality rates have finally been declining over consecutive weeks, where the government is doing its best to curb the spread. In other parts of the world, particularly the UK and the US, where they have accelerated their vaccine programs & are moving towards reopening in order to build herd immunity, other countries across the globe need to follow suit in order to try and get back to some form of normality before the end of the year.”

GMS Pricing

India/Bangladesh/Pakistan – Week 24, Up USD 20 WoW

Dry Bulk – USD 530-550 per LDT

Tankers - USD 540-560 per LDT

Containers - USD 550-570 per LDT

Source - Strategic Research Institute
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Mr Gupta Progressing on Australian Ceasefire

The Sunday Times reported that Mr Sanjeev Gupta is close to signing a deal with Credit Suisse that would allow him to keep hold of his Australian steelworks. As per report “Gupta is in advanced talks with US lenders White Oak and Guggenheim Partners on refinancing his Whyalla plant and mines. It has signed a standstill agreement that halts legal action for six weeks. Refinancing would allow Credit Suisse to recoup about USD 250 million.”

GFG said it is making positive progress on the debt deal.

Credit Suisse has been pursuing legal action to claw back its USD 1.2 billion exposure to Gupta’s GFG empire, lent via Greensill, the bust finance firm.

Source - Strategic Research Institute
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Two Killed Four Injured in Fireat Jagadamba Steel Industry inNepal

The Himalayan Times reported that two persons died while four others sustained injuries after an explosion caused a fire at Jagadamba Steel Industry in Simara town in Gadhimai Municipality of Bara District in Province No 2 of south-eastern Nepal on Saturday night. According to police, a furnace oil tank inside the premise of the industry exploded when the workers were wielding the tank on Saturday night. The fire caused by the explosion killed two workers while injured four other workers. The fire was doused with the help of fire engines deployed by Jitpursimara Sub-Metropolis and Birgunj Metropolis

The injured were rushed to Simara-based Tarai Simara Hospital for treatment. They were later referred to Birgunj-based Vayodha Hospital for further treatment. Among the injured, one worket is reported to be in critical condition.

Source - Strategic Research Institute
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Scandia Steel to Review Business Ties with Belarusian Steel Works

BelSat reported that in a response letter from the Professional Union of Belarusians in the UK PUBB, Scandia Steel said that “We take all allegations of human rights violations seriously, whether concerning our own operations or our business relationships. We share your caution about worker relations. The board of directors considered the matter and decided to phase out BSW as a supplier and suspend future product orders.”

Non governmental organizations and the Belarusian diaspora have appealed to Belarusian Steel Works customers, including Scandia Steel Baltic, part of the Swedish company Scandia Steel, about violations of workers’ rights at its supplier and compliance with their ethical rules.

Scandia Steel is a leading supplier of steel piling piles to the Scandinavian & Balkan markets

Source - Strategic Research Institute
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Aurizon Coal Train Accident Kills One Person

Australian media reported a 49 year old man died and two other were injured after loaded coal train crashed into another locomotive at Westwood near Rockhampton in Queensland in Australia on 18 June. Both trains were travelling west when the crash happened. The Forensic Crash Unit is investigating. A spokesperson of Aurizon said “Aurizon is assisting emergency services with access to the rail corridor at Westwood, west of Rockhampton, following an accident just after 11am today. A locomotive, owned by another rail operator, has struck the rear of a stationary Aurizon coal train.”

The Blackwater system links Central Queensland mines from the Bowen Basin to two export terminals at the Port of Gladstone RG Tanna Coal Terminal and the Wiggins Island Coal Export Terminal, The Blackwater Coal Rail System is one of four systems in Aurizon's Central Queensland Coal Network. It has the largest route length of the four coal systems. Some of the coking coal mines located along the Blackwater Line include Blackwater Mine, Curragh, Jellinbah and Yarrabee.

Australian media reported a 49 year old man died and two other were injured after loaded coal train crashed into another locomotive at Westwood near Rockhampton in Queensland in Australia on 18 June. Both trains were travelling west when the crash happened. The Forensic Crash Unit is investigating. A spokesperson of Aurizon said “Aurizon is assisting emergency services with access to the rail corridor at Westwood, west of Rockhampton, following an accident just after 11am today. A locomotive, owned by another rail operator, has struck the rear of a stationary Aurizon coal train.”

The Blackwater system links Central Queensland mines from the Bowen Basin to two export terminals at the Port of Gladstone RG Tanna Coal Terminal and the Wiggins Island Coal Export Terminal, The Blackwater Coal Rail System is one of four systems in Aurizon's Central Queensland Coal Network. It has the largest route length of the four coal systems. Some of the coking coal mines located along the Blackwater Line include Blackwater Mine, Curragh, Jellinbah and Yarrabee.
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Heliogen Raises Funds for Heat, Power & Green Hydrogen Technology

Pasadena California based renewable energy technology company Heliogen is unlocking the power of sunlight to replace fossil fuels Heliogen has raised USD 108 million in two funding rounds to accelerate the global deployment of its Sunlight Refinery, a turnkey concentrated solar energy system that aims to make carbon-free energy for high-temperature heat, power, and green hydrogen accessible and more cost-effective than fossil fuels for the first time. The company recently closed USD 83 million in funding, an oversubscribed round that is in addition to USD 5 million raised in the previous round. Among the new investors in Heliogen are ArcelorMittal, Edison International, Prime Movers Lab, Ocgrow Ventures, AT Gekko, ESG Venture Capital, Gordon Crawford and Rashaun Williams.

In November 2019, Heliogen announced that it had successfully demonstrated the first commercial solution for utilizing concentrated solar energy to exceed temperatures greater than 1,000 degrees Celsius. The advanced computer vision software unique to the Sunlight Refinery precisely aligns an array of mirrors to reflect sunlight to a single target with unprecedented accuracy, delivering high-temperature, carbon-free thermal energy. The baseline system will provide industrial-grade heat that will be capable of replacing fossil fuels in processes including the production of cement, steel, and petrochemicals. Heliogen’s technology will also enable power generation through the addition of a supercritical CO2 turbine and green hydrogen fuel production in combination with an electrolyzer.

In March 2021, Heliogen and Rio Tinto announced a Memorandum of Understanding under the terms of which Heliogen will deploy its proprietary, artificial intelligence powered technology at Rio Tinto’s borates mine in Boron in California. Heliogen will use heat from the sun to generate and store carbon-free energy to power the mine’s industrial processes, significantly reducing carbon emissions at the site.

Among Heliogen’s existing investors are leading global figures in the fight against the climate crisis, including Bill Gates, Patrick Soon-Shiong, the Los Angeles-based investor and entrepreneur through his investment firm, Nant Capital, Steve Case through Revolution’s The Rise of the Rest® Seed Fund, and Neotribe Ventures.

Source - Strategic Research Institute
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Ezz Steel Reports Surge in Net Profit in Jan-Mar Quarter

Egypt's largest steel producer Ezz Steel has achieved EGP 1.187 billion net profits during the first three months of 2021, against net losses of EGP 1.35 billion in the year-ago period. The company's sales jumped to EGP 13.49 billion in Q1 2021 from EGP 10.78 billion in Q1-20. Earnings increased in line with increased production of flat steel, specifically hot rolled coil and exports. Ezz Steel said “With respect to flat steel, a significant development has occurred in the local market, where Ezz Steel is one of the most important suppliers: after years of local consumption hovering around 1.2 million tonnes per year, the market has expanded to 1.5 million tonnes per year, backed by increasing demand.”

As for the standalone results, the company recorded EGP 74.183 million net profits in the January-March period of 2021, versus net losses of EGP 266.883 million in the corresponding period of 2020.

The total exports of Ezz Steel jumped by 47%YoY to USD 269 million during the first quarter of 2021, compared to USD 183 million. These exports comprise USD 208 million in flat steel and USD 61 million in coiled rebar.

Source - Strategic Research Institute
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HYBRIT Pilot Project Produces Hydrogen Reduced Sponge Iron

SSAB, LKAB and Vattenfall have now produced the world’s first hydrogen-reduced sponge iron at a pilot scale. The technological breakthrough in the HYBRIT initiative captures around 90% of emissions in conjunction with steelmaking and is a decisive step on the road to fossil-free steel. The HYBRIT pilot plant in Luleå, Sweden has completed test production of sponge iron and demonstrates that it is possible to use fossil-free hydrogen gas to reduce iron ore instead of using coal and coke to remove the oxygen. Production has been continuous and of good quality. Around 100 tonnes have been made so far. This is the first time ever that hydrogen made with fossil-free electricity has been used in the direct reduction of iron ore at a pilot scale. The goal in principle is to eliminate carbon dioxide emissions from the steelmaking process by using only fossil-free feedstock and fossil-free energy in all parts of the value chain.

Hydrogen-based reduction is a critical milestone, which paves the way for future fossil-free iron- and steelmaking. SSAB, LKAB and Vattenfall intend, through HYBRIT, to create the most efficient value chain from the mine to steel, with the aim of being first to market, in 2026, with fossil-free steel at an industrial scale.

Last year, HYBRIT, a joint initiative of SSAB, LKAB and Vattenfall, began test operations to make hydrogen-reduced sponge iron in the pilot plant built with support from the Swedish Energy Agency. The technology is being constantly developed and the sponge iron that has been successfully made using hydrogen technology is the feedstock for the fossil-free steel of the future.

The hydrogen used in the direct reduction process is generated by electrolysis of water with fossil-free electricity, and can be used immediately or stored for later use. In May, HYBRIT began work on building a pilot-scale hydrogen storage facility adjacent to the direct reduction pilot plant in Luleå.

Source - Strategic Research Institute
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ArcelorMittal & Thyssenkrupp BF Relining to Increase Deficit in EU

Kallanish reported that while steel supply has been critically short in Europe since autumn last year, steel makers ArcelorMittal and thyssenkrupp have scheduled relines at major blast furnaces. ArcelorMittal’s Flat Products Europe marketing head Laurent Plasman told Kallanish European Steel Markets conference “No, there is no conspiracy to it. The company is big in Europe and hence needs to carry out larger maintenance at some site or other every year, he noted. Most recently, it undertook a reline of a big BF in Gent, which was restarted in March. We would have wished not to have it and leave the market to competitors. A reline in a high cycle is painful; we all want to make money with steel produced and sold.”

Along similar lines, thyssenkrupp’s distribution unit Materials Services Martin Stillger answered on behalf of the group’s steelmaking unit. He told “Tk Steel will start shutting down one of its Duisburg BFs next month for a three-month reline. We had postponed the measure already, so it is now or never if you want to keep the asset. It has nothing to do with the market scenario.”

Source - Strategic Research Institute
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EU States Vote for Extension of Steel Safeguard Measures

The European Commission’s proposal to extend steel safeguard measures, which expire on June 30, 2021, for three years was adopted by EU member states on 17 June in favour, eight against and two abstentions. The 17 member states who voted in favour represent 88% of the EU’s population, the minimum condition for a qualified majority decision is 15 member states representing at least 65% of the population. Estonia, Latvia, Lithuania, Sweden, Denmark, the Netherlands, Malta and Ireland voted against the proposal, while Austria and Cyprus abstained. Consultations on the proposal took place between 14 and 18 June. However, this does not mean that a final decision has been made. This will be finalized by the EC.

On 11 June the Commission notified parties to the investigation as well as the WTO of its intention to prolong steel safeguard measures for three years beyond 30 June. In its determination following the safeguard review, the Commission found evidence that the measures continue to be necessary to prevent or remedy serious injury or threat to EU steel industry. According to the EC proposal, a relaxation of tariff-free quotas of 3% annually would be implemented during the 2021-2024 period. A review of how the measure is working would be carried out before the end of June 2022.

Source - Strategic Research Institute
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Labour Party Fails to Get Support to Reconsider TRA Recommendation

Business Live reported that a bid by UK’s opposition Labour Party to block the Trade Remedies Authority’s recommended removal of 9 steel products from the ambit of safeguard measures has failed by 355 to 271 votes in British Parliament.

Labour Party’s Shadow International Trade Secretary Ms Emily Thornberry opened the debate. She told how the review process had exposed three fundamental problems that there was no sense whatsoever to look at UK safeguards in isolation with eight out of 10 of the largest steel producers having such protections and China heading towards the one billion tonne steel production mark, with 300 million tonnes of spare capacity. Ms Thornberry also said “TRA review didn’t take into account the impact on the 34,000 jobs, exactly the kind of jobs in exactly the same places we are told to level up. There could be a knock on implication for defence, critical infrastructure and Net Zero emissions targets. Either the TRA remit needs to change so it can consider the global context of its recommendations and take into account their impact on our jobs, communities, regions, national defence, our civil infrastructure and our climate change objectives, or alternatively, the Secretary of State’s powers need to change to allow her to weigh up all those factors, against TRA analysis and make a decision, with parliament's approval, based on our overall national interest; what is best for Britain. One thing we should be certain of now is that the government cannot proceed with a decision on steel safeguards on the basis of recommendations by the TRA that have not even taken into account some of the most crucial factors at the heart of this discussion. If the Secretary of State refuses to act to protect our safeguard tariffs it will be an unquestionable betrayal of Britain’s steel communities, one they will never forget and one they will never forgive.”

UK’s Minister of State (Minister for Energy, Clean Growth and Climate Change) at the Department of Business, Energy and Industrial Strategy Ms Anne-Marie Trevelyan said “I recognise the significant concern being expressed. The world has changed since 2018 when these powers were put in place, and so my department is very supportive of the Trade Secretary’s desire to review the domestic toolkit given the challenges of global trade. At the same time, I and my ministerial colleagues in BEIS will continue to devote our focus to the future of this important sector. UK industry will continue to need high quality steel and British Steel is amongst the best in the world. Making sure our steel industry has the right conditions to thrive is a key part of our efforts to reach Net Zero and level up across our country. There should be no doubt this government is committed to UK steel making. We are already working to protect jobs and to ensure the industry succeeds at securing a sustainable future.”

Source - Strategic Research Institute
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GPH Ispat Starts Commercial Production at New Plant

Financial Express reported that GPH Ispat has started commercial production at its new BDT 23.90 billion expansion plant. The company started commercial production using state-of-the-art technology after successful partial commissioning with the help of local technicians as well as online support from the technology supplier Primetals Technologies Austria. It said “Due to pandemic Covid-19 impact, it is not possible to avail on site support of technicians from Primetals Technologies Austria GmbH, who are the main technology supplier of the plant which lead to barrier of the completion of commissioning it’s all products.”

The new factory, which is an expansion of GHP Ispat’s existing operations, has the annual capacity to produce 840,000 tonnes of mild steel billet and 640,000 tonnes MS rod and medium section products such as steel beam, angle, channel, flat bar etc, but the company has to wait for a certain period of time for the full-fledged production to yield the said capacity.

In September last year, the company started trail production from the new expansion plant.

Chittagong Bangladesh based GPH Ispat was setup in 2006. It produces rebars using EAF, laded refining, caster & rolling mill.

Source - Strategic Research Institute
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Hygi Develops Anti COVID Copper Alloys to Replace Stainless Steel

Business Live reported that Devon Barnstaple based Hygi Group has developed a new copper-based alloy that kills viruses and bacteria on impact and can replace stainless steel. It is set to play a significant part in future management of the virus, offering a viable anti-Covid replacement for stainless steel in public buildings and spaces. The test results came from a team of scientists at the University of Southampton, led by Professor Bill Keevil, one of the world’s leading microbiologists. Test results showed that on the new alloy the Covid virus was almost completely eliminated in 90 minutes, and totally so within two hours. He said “Many public and private buildings have touch surfaces made from stainless steel, such as door handles, push-plates, handrails and the like. It appears to be clean and shiny, but hides a multitude of sins. Under the microscope we see lots of pits and crevices where pathogens such as bacteria and viruses can hide, even after cleaning.”

It has already caught the eye of top rugby team Exeter Chiefs, which is looking to use it in changing rooms and the extension to the East Terrace at the Sandy Park stadium.

Hygi Group Managing Director Mr Aaron Yeo said “Unfortunately, not only does stainless steel do nothing to inactivate the virus, it can actually harbour it for days if not weeks, even after cleaning. When people cough or sneeze, or even speak loudly, they're producing thousands of particles in the air, which eventually all settle, and when touched will get transported. There’s a lot of confusion, and, frankly, misinformation, over what percentage of infections are caused via touch surfaces. My experience tells me touch surface transmission is a significant factor in the spread of Covid, as indeed it has been with Influenza. This new alloy developed in the UK will also be useful in the education sector, at transport hubs, sports stadia and entertainment venues, etc. Indeed, anywhere with high human traffic. Hygi Group in Barnstaple should be very pleased by what they have achieved.”

Source - Strategic Research Institute
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Lucchini RS Reports Recovery in Performance in 2020

Italian steel maker Lucchini RS Spa has reported consolidated revenues of EUR 404 million for 2020, down by 5% YoY as compared to EUR 424.7 million in 2019. EBITDA in 2020 amounted to EUR 50.9 million, registering an increase from EUR 42.1 million in 2019, while its net profit rose to EUR 24.8 million from EUR 18.2 million. Lucchini RS said "The plant in Lovere, Bergamo, which is the group's main production site, autonomously decided to stop all production activities one week before the first national lockdown in March last year, in order to guarantee the safety of its personnel, adopt all the preventive measures indicated by the Italian government and be able to restart its business with greater safety in April. This made it possible to guarantee customers continuity of supply, in particular of the material destined for railways all over the world, also through the network of subsidiaries in various geographical areas. Once activity was resumed, it was possible to recover the lost outputs, continue with the efficiency and investment programs, and achieve positive financial results.”

Lucchini RS Spa has maintained a policy of technical investments that during the year amounted to EUR 21.6 million.

Lucchini RS Spa is an Italian company, fully owned by the Lucchini Family. The group’s core business is identified with two divisions:

1. Manufacturing of high-end railway components wheels, axles and wheelsets for high-speed applications, locomotives, passenger trains, trams and underground trains

2. Manufacturing of forging and casting to drawings, for various applications such as power generation, oil and gas, offshore platforms, cement works, industrial plants, iron and steel production plants or shipbuilding.

Lucchini RS also produces a large variety of tool steel grades for plastic moulding, pressure die-casting and extrusion.

Source - Strategic Research Institute
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Myanmar Plans to Reopen Russian Backed Steel Factory at Pinpet

The Irrawaddy reported that the Myanmar regime plans to reopen the No 2 Steel factory at Pinpet in Shan State, which was closed more than four years ago. The plant is joint iron exploitation and processing project between the military-owned Myanmar Economic Corporation and the state owned Russian company Tyazhpromexport. This was discussed by Russian ambassador to Myanmar Dr Nikolay Listopadov and Maynmar Minister of Industry Dr Charlie Than. A junta-controlled newspaper stated that the Russian ambassador and the junta minister also discussed bringing in Russian technical experts to inspect the steel mill.

Located in war-torn Shan State, the Pinpet project has transformed the area, Mount Pinpet or Pine Tree Mountain, into the country’s largest iron mine. Until it was suspended in early 2017, the Steel Mill construction project was run under a contract between the MEC and VO Tyazhpromexport, a subsidiary of Russia’s State Corporation Rostec. It is built on 5,260 acres of land in Pinpet. The project, which began in 2004, was expected to produce 200,000 tonnes of pig iron and 720,000 tonnes of iron ore. The pig iron was to be used as a raw material for steel production at the No1 Steel Mill, Myingyan steel plant, which is also suspended, in Mandalay Region.

Source - Strategic Research Institute
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