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Vietnamese Hoa Phat Steel Sales Reaches 4.3 Million Tonnes in H1

In June 2021, the output of Hoa Phat Group’s crude steel reached 658,000 tonnes, increasing 49 per cent from the same period last year. Its steel sales last month were 569,000 tonnes, increasing 10 per cent. Of which, the sales of hot rolled coil steel and construction steel reached 230,000 tonnes each. The group sold more than 41,000 tonnes of steel pipe while the remaining was galvanized steel sheet and steel billet. Hoa Phat's sales volume of construction steel and steel pipes was decreased over the same period and the previous month due to the impact of the 4th COVID-19 pandemic nationwide, especially in Ho Chi Minh City and the southern provinces while the rainy season has begun.

In the first half of the year, Hoa Phat Group produced more than 4 million tonnes of crude steel, up 55 per cent over the same period last year. Sales volume of steel products reached nearly 4.3 million tonnes, increasing more than 60 per cent from the same period last year. Construction steel reached 1.8 million tonnes, representing 22 per cent year-on-year increase. The amount of steel billet sold in both domestic and foreign markets was 608,000 tonnes.

The hot rolled coil production exceeded 1.3 million tonnes in the six month period, meeting 50 per cent of the whole year’s set plan. Steel pipes output recorded 375,000 tonnes, up 8 per cent from the corresponding period last year. Hoa Phat's galvanized steel sheet output posted the record growth, reaching nearly 160,000 tonnes, 2.8 times higher than the same period last year.

Source - Strategic Research Institute
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SAIL RSP Crosses 100 Million Tonne Hot Metal Mark

Steel Authority of India Limited’s Rourkela Steel Plant has cumulatively produced 100 million tonne of hot metal on July 5, 2021. @sailrsp1 tweeted “It's time for celebrations! SAIL, Rourkela Steel Plant has crossed the 100 Million Ton Hot Metal production mark! Heartfelt thanks to each of our stakeholders for being there with us in this historic journey!”

Time Line – Hot Metal Production

First 50 million tonne – 44 Years

Last 50 million tonne – 18 Years

Last 10 million tonne – 2 years 8 months

Rourkela Steel Plant was the first integrated steel plant in the public sector in India. It was set up with West Germany collaboration with an installed capacity of 1 million tonnes in the 1960s. German metallurgical firms Mannesmann, Krupp, Demag, Siemens and Austrian company Voestalpine provided machinery and consultancy to the plant among others. Rourkela Steel Plant was the first steel plant in Asia to use the LD (Linz-Donawitz) process of steel-making. On 3 February 1959, then president Dr Rajendra Prasad had inaugurated RSP's first blast furnace named 'Parvati' when the company was known as Hindustan Steel Limited. Subsequently, the RSP became a unit of SAIL. RSP presently has the capacity to produce 4.5 million tonnes of hot metal, 4.2 million tonnes of crude steel and 3.9 million tonnes of saleable steel.

Source - Strategic Research Institute
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Metalloinvest Appoints Mr Tokarenko as MD of Lebedinsky GOK

Leading Russian iron ore, HBI & steel producer Metalloinvest announced the appointment of Mr Alexander Tokarenko as Managing Director of Lebedinsky GOK. Since 1995, Alexander Tokarenko worked at Polyus, where he rose through the ranks from assistant to the mining foreman of the open-pit mine, to becoming the head of Polyus Krasnoyarsk.

Lebedinsky GOK is the world’s largest producer of merchant HBI, the raw material for green metallurgy. In the coming years, Metalloinvest’s significant investments will be directed towards expanding and modernising the plant’s production capacity with the aim of increasing the production of high-quality products that support carbon footprint reduction.

Source - Strategic Research Institute
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Vallourec Supplies Seamless Hollow Sections for Hywind Tampen

Vallourec is partnering with Aker Solutions, an engineering company well-established in the global energy industry. As the provider of engineering, procurement and construction services, Aker Solutions commissioned Vallourec to provide seamless hot formed hollow sections for Equinor’s Hywind Tampen floating wind project. For this cutting-edge project, Aker Solutions required pipe material direct from an approved and audited pipe manufacturer. Having already undergone mill and product auditing in 2014, Vallourec fit the bill. In total, Vallourec supplied 340 tonnes of seamless hot formed hollow sections in square, rectangular and round shapes, partly blasted and coated and in accordance with NORSOK standard M-120, Material Data Sheets Y27 and Y07.

The Vallourec Plug Mill in Rath-Düsseldorf and the Continuous Mill in Mülheim produced the range of thirteen sizes needed for the project.

Hywind Tampen is an 88 MW floating wind power project intended to provide electricity for the Snorre and Gullfaks offshore field operations in the Norwegian North Sea. It will be the world’s first floating wind farm to power offshore oil and gas platforms.

Source - Strategic Research Institute
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Guilin Pinggang Issues FAC for EAF Quantum & LF to Primetals

Chinese steel producer Guilin Pinggang Iron and Steel Co Ltd issued the final acceptance certificate for an EAF Quantum electric arc furnace with a tapping weight of 120 metric tons and a 120 tonne twin ladle furnace supplied by Primetals Technologies in June 2021. The furnaces were set up in a new production facility in Pingle near Guilin in Guangxi Province, which is intended to serve the growing market for rebars. The EAF Quantum is designed to handle scrap steel of varying composition and quality. The electrical energy requirement of the electric arc furnace is extremely low because the scrap is preheated. Due to a high automation level of the Quantum concept the power-off time could be reduced by approximately half to a conventional EAF. All this reduces the operation costs and the C02 emissions beside the increase of productivity.

Primetals Technologies has supplied the complete mechanical and electrical process equipment for the new EAF Quantum electric arc furnace and the twin ladle furnace. The balance of plant auxiliary equipment and services has been provided by a local design institute.

The EAF Quantum developed by Primetals Technologies combines proven elements of shaft furnace technology with an innovative scrap charging process, an efficient preheating system, a new tilting concept for the lower shell, and an optimized tapping system. This achieves very short tap-to-tap times. The electric energy consumption is considerably less than that of a conventional electric arc furnace. Together with the lower consumption of electrodes and oxygen, this gives an overall advantage in the specific conversion cost of around 20 percent. In comparison to conventional electric arc furnaces, total CO2 emissions can also be reduced by up to 30 percent per metric ton of crude steel.

Guilin Pinggang is privately owned and located in Pingle near Guilin city in Guangxi Province. The enterprise has an annual production capacity of 1.2 million tonnes, and produces rebars, wire and other steel elements for the construction industry.

Source - Strategic Research Institute
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SAIL Steel Executive Federation of India Renews Revised Pay Demand

Express News Service reported that Steel Authority of India Limited’s officers association Steel Executives’ Federation of India has renewed demand for pending pay revision of executives, after trade unions resorted to strike at all SAIL units across the country over pending wage revision of steel PSU workers. Steel Executives’ Federation of India General Secretary and RSP Executives’ Association President Mr Bimal Bisi wrote to the Prime Minister’s Office seeking intervention for faster implementation of pay revision of executives and urged not to link the issue with wage revision of non-executives.

He wrote “It is not justified in any sense to pay similar wages to both executives and non-executives as the executives governed by Conduct Discipline and Appeal Rules perform with higher levels of responsibility and accountability.”

Source - Strategic Research Institute
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Marampa Mines Loads First Ship for Iron OreExport from Sierra Leone

Gerald Group’s subsidiary Marampa Mines Limited announced the arrival of its first ship and the kick off of its first day of loading >65% Fe iron ore concentrate at Delta 1 anchorage point in the Port of Freetown in Sierra Leone. The premium grade material will be Marampa Mines Limited 's first shipment to leave the shores of Freetown Port following the out of court settlement of the dispute between the Government of Sierra Leone and SL Mining Limited / Gerald Group. Over the following months, Marampa Mines Limited will export the current stockpile of approximately 707KT of iron ore beneficiated by SL Mining and known globally as Marampa Blue.

Gerald Group Chairman and CEO Mr Craig Dean said, 'Today marks the restart of iron ore shipments, and as we look to the future, all of us at MML and Gerald are excited about this 1st shipment in 2021 and as we progress to the re-opening of the mine once the mining license is issued in accordance with the applicable laws and the binding agreement. I would like to thank His Excellency Julius Maada Bio for the opportunity to settle all disagreements of the past, and his full support that allows our export operations to re-start in record time."

The team is also working quickly and safely to resume iron ore mining and processing at the mine site, initially set for 2Mtpa capacity, rising to 3.25Mtpa within 12 months, creating in the process over 1,400 jobs and a workforce with over 90% local employees and contractors this year.

Marampa Mines is engaged in the exploration, development and production of iron ore concentrate from resources of over 1 billion tonnes at Marampa in the Port Loko District of the northern province of Sierra Leone.

Gerald owns 90% of MML while the Government of Sierra Leone owns the remaining 10%. In addition, MML also gets what is known as the Marampa South and Marampa North mining concessions.

Source - Strategic Research Institute
Bijlage:
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09:29
*ING verhoogt koersdoel Aperam van 46,00 naar 58,00 euro
09:29
*ING handhaaft koopadvies op Aperam
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Beursblik: ING verhoogt koersdoel Aperam
Koersdoel naar 58,00 euro.

(ABM FN) ING heeft woensdag het koersdoel voor Aperam verhoogd van 46,00 naar 58,00 euro bij handhaving van het koopadvies.

In aanloop naar de cijfers over het tweede kwartaal, verhoogde analist Stijn Demeester zijn taxaties. De ontwikkelingen op de markt voor roestvrij staal bleven in het afgelopen kwartaal sterk, gesteund door een herstel van de industriële vraag en gunstige ontwikkelingen in de Europese Unie, waar Brussel de pogingen van China en Indonesië om hun roestvast staal in de EU te dumpen tegen lage prijzen pareert.

"Na een optimalisatie van de productie en kostenstructuur in de afgelopen jaren, is Aperam goed gepositioneerd en de solide balans geeft ruimte voor overnames en het belonen van de aandeelhouders", aldus Demeester.

De analist vindt de waardering van het aandeel nog steeds te laag en ziet ruimte voor opwaartse bijstellingen van de consensus. Het aandeel Aperam steeg woensdagochtend met 2,8 procent tot 46,28 euro.

Door: ABM Financial News.

pers@abmfn.be

Redactie: +32(0)78 486 481
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ArcelorMittal rondt inkoopprogramma af
Staalreus kocht voor ruim 630 miljoen euro aan eigen aandelen.

(ABM FN-Dow Jones) ArcelorMittal heeft zijn derde inkoopprogramma van eigen aandelen afgerond. Dit meldde de staalreus woensdagmiddag.

Onder het programma kocht Arcelor circa 24,5 miljoen eigen aandelen in tegen een gemiddelde prijs van 25,7725 euro per aandeel en een totaal van ruim 630 miljoen euro.

Door: ABM Financial News.

info@abmfn.nl

Redactie: +31(0)20 26 28 999
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China to Increase Scrap Based Steel Making to Protect Climate

Reuters reported that China plans to increase its use of steel scrap and to increase production of recycled nonferrous metals, in an effort to ensure supplies and to meet the country's climate commitments. National Development and Reform Commission said “China's steel scrap usage was around 260 million tonnes in 2020, which could increase by 23% to 320 million tonnes by 2025.”

National Development and Reform Commission also said “China will boost its recycled nonferrous output to 20 million tonnes in the next five years from 14.5 million tonnes in 2020. That includes targets of 4 million tonnes of recycled copper, 11.5 million tonnes of recycled aluminium and 2.9 million tonnes of recycled lead.”

The NDRC also vowed to raise the substitution rate of renewable resources to primary resources and to enhance utilisation of low grade ores, tailing dams and other resources. The plan will also help the country to meet its carbon peak and carbon neutrality goals. China plans to bring its greenhouse gas emissions to a peak before 2030 and to become "carbon neutral" by 2060. The ferrous sector contributes about 15% to China's total carbon emissions while the nonferrous industry accounts for about 4.7%.

Source - Strategic Research Institute
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ICRA Expects Indian Crude Steel Capacity to Touch 150MT by Mar’22

India’s steel sector continues to grow in 2021 as new steel plants are being commissioned. According to a recent report by Indian credit ratings agency ICRA Ratings, India’s total steel capacity in the fiscal year ending March 2022 will likely rise to 150 million tonnes a year. ICRA has factored in capacity additions during the year, including a brownfield expansion by JSW Steel’s Dolvi unit in Maharashtra.

Acording to earlier media reports about 14.5 million tonne steel capacities are being setup

NMDC Nagarnagar - 3.0 million tonne

JSW Torunglu - 1.0 million tonne

JSW Dolvi - 5.7 million tonne

Tata Steel Kalinganagar - 5.0 million tonne

Vedanta Bokaro - 1.0 million tonne

According to India’s Stee Ministry update “Capacity for India’s domestic crude steel production expanded from 109.85 million tonnes per annum in 2014-15 to 142.24 million tonnes per annum in 2018-19, at Compounded Annual Growth Rate of 6.8% during this five-year period.”

Source - Strategic Research Institute
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JSPL Reports 20% YoY Surge in Steel Production in Q1 of 2021-22

Jindal Steel & Power Limited has reported strong production in the first quarter of 2021-22. Steel production surged 20% YoY to 2.01 million tonnes, marking a record first quarter production and second highest quarterly production ever. Conscious decision by the company to divert oxygen towards saving precious human lives led to production getting impacted slightly. Solid performance in Q1 of 2021-22 signals that JSPL remains on track to achieve 2021-22 production target of 8.0-8.5 million tonnes

Despite challenging demand conditions in the domestic market, as a result of a severe than expected second wave of COVID-19, JSPL sales were resilient at 1.61 million tonnes up 3% YoY. Buoyant export markets continued to provide support with exports accounting for 44% of volumes in the month of June 21 and 34% in 1QFY22. Exports were however impacted by logistical challenges posed by adverse weather conditions leading to congestion at ports. Inventory of 150,000 tonnes currently remains stuck at port; which will be shipped as soon as the logistical bottlenecks are removed.

Source - Strategic Research Institute
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Audit Reveals that Greensill Potentially Broke COVID Loan Rules

The Sky News reported that UK’s National Audit Office investigation revealed that Greensill Capital potentially broke the rules of British government's Coronavirus Large Business Interruption Loan Scheme, lent seven loans of GBP 50 million to companies with connections to the Mr Sanjeev Gupta Family Group Alliance, owner of Liberty Steel. The NAO report says it was made clear to Greensill that there was a maximum lending limit of GBP 50 million per borrower group. Despite this, seven of the eight CLBILS loans made by Greensill were to companies in Mr Gupta's business empire, totalling GBP 350 million. Six of the GBP 50 million loans were made on the same day ie 30 September 2020.

The report also sheds light on how unusual the lending pattern was. Although lenders were allowed to lend up to GBP 50 million, most did not, and the average loan under CLBILS was just GBP 3 million. In fact only 17 of 698 CLBILS loans were for the maximum amount, eight of which were lent by Greensill, making it the fifth-largest lender on the scheme by value.

The NAO's investigation did not explore the firm's links to government but it did report on the unusual interest taken by the Department for Business, Energy & Industrial Strategy into Greensill's accreditation as a lender. The report details how updates on the accreditation process were repeatedly requested, with eight email enquiries sent over 19 weeks.

The National Audit Office said that the British Business Bank had been in a hurry to get money to businesses as quickly as possible and this meant it didn't necessarily have the time to question Greensill further before accrediting it as a lender. It explained that the bank placed greater reliance on audit checks after it accredited lenders rather than due diligence before, in order to speed up the process. However, it was given credit for acting quickly and decisively when suspected breaches had been made.

Coronavirus Large Business Interruption Loan Scheme was set up by the British government to help struggling businesses at the onset of the pandemic and the government committed to guaranteeing 80% of the loans under this scheme.

Source - Strategic Research Institute
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EU Enforces Definitive AD Duties on HRC Import from Turkey

The European Commission announced that the definitive antidumping duty on hot rolled coil imports from Turkey is effective as of July 5 2021. The European Commission has introduced anti-dumping duties ranging 4.8-7.6% of import value, on hot rolled flat products of iron, non-alloy or other alloy steel originating from Turkey.

Habas Sinai Ve Tibbi Gazlar Istihsal Endustrisi AS – 4.7%

Erdemir Group (Eregli Demir and Isdemir) – 5.0%

Agir Haddecilik AS - 5.7%

Borcelik Celik Sanayii Ticaret AS – 5.7%

Colakoglu Metalurji AS – 7.3%

All other companies - 7.3%

The EU opened an investigation into whether Turkey was dumping hot-rolled flat steel products on 14 May 2020, responding to complaints from the European Steel Association.

Source - Strategic Research Institute
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ICRA Sees Reduction in Indian Iron Ore Pellet Export in H2 of 2021

Indian credit ratings agency ICRA Ratings said that “The ongoing rally in international pellet prices is driven by strong Chinese demand and limited suppliesfrom Brazil. However, steel production cuts by China to curb carbon emissionsand improvingsuppliesin Brazil following production ramp-up by Samarco and Vale could spoil the rally. This, in turn, could dent Indian pellet export, which has been on a rising trajectory since 2019. Besides, domestic pellet prices remain more remunerative compared to exportsat present, which would further disincentivise pellet exports in H2 of 2021.”

ICRA said “Chinese pellet imports surged in 2020 following the restraints on sintering activities by the Chinese Government to curb carbon emissions. China imported 45.0 million tonne pellets in 2020 against 32.6 million tonnes in 2019. On the other hand, Brazil reported a fall in pellet exportsto 15.5 million tonne in 2020 from 24.4 million tonne in 2019 due to continued supply-side constraints as an aftermath ofthe tailing dam disaster, thereby resulting in a 4% contraction in global supplies. Consequently, international pellet prices witnessed a significant uptick of145% to USD 287 per tonne CFR China over the last one year, driven by strong demand and limited supplies.”

ICRA said “China has plans to achieve peak carbon emissions by 2025 for the steel sector and cut the emission volumes to 70% of current level by 2030. To achieve these targets, the Chinese Government has announced production cuts for the steel sector in 2021. It has also abolished export rebates on 146 steel items with effect from May 1, 2021 to discourage steel exports. These measures could weaken China’s appetite for imported pellets in H2 of 2021.”

ICRA added “On the supply side, Brazilian pellet exportsarelikely to increase with Vale & BHP JV Samarco Mineração having a pellet capacity of 30.5 million tonne per annum resuming operations in Q1 of 2021. Samarco was forced to stopproduction following tailing dam collapse in Bento Rodrigues Brazil in November 2015. It expects to produce 7-8 million tonnes in 2021 and rampup the production further in 2022. Vale, which reported pellet production of 29.7 million tonne in 2020,is likely to maintain the production at similar level in 2021 and increase the sameto 50-60 million tonne in 2022As a result, pellet exports from Brazil are set to increase to 23.5 million tonne in 2021 from 15.5 million tonne in 2020,supported by the production ramp-up by Samarco, though the same is expected to remain39% lower than 2018 export levels. Expectationsof lowerChinese demand and easing supply constraints could cool down theongoing breakneck pellet price rally in H2 of 2021.”

ICRA said “Indian pellet exports rose by 75% to 13.9 million tonne in 2020 from 8.0 million tonne in 2018 to partially bridge the gap created by falling Brazilian exports. Despite the healthy export demand andremoval of the 5% export duty on pellets in2016, overallexports from India remined low at an absolute level owing to logistics constraints, including rake availability, as most of the pellet capacities in India are located far away from ports. Nonetheless, India was the biggest beneficiary of the curtailment in Brazilian exports. China remained the major export destination for Indian pellets, accounting for 83% of total pellets exported by India in 2020, followed by Malaysia at 6%, Oman a 5% and Indonesia at 4%. India’s exports to China picked up by 11% YoY to 11.1 million tonne in 2020.Healthy export demand resulted in a sharp rise of 60% in Indian pellet export prices in H2 of 2020. However, going forward, steel production cuts by China and improving supplies from Brazil could act as headwinds, and dampen Indian pellet exports in H2 of 2021.Also, domestic pellet prices had risen sharply since November 2020 on the back of a surge in domestic iron ore prices and the rally in seaborne pellet prices. While the domestic pellet pricesare currently lower than the export FOB prices, the gross contribution level in the domestic market is higher than exports, thereby further reducing the attractiveness of export market vis-a-vis domestic market. With the second wave of the pandemic tapering off, the domestic prices are likely to remain firm, supported by a recovery in end-user segment demand.”

Source - Strategic Research Institute
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COVID 19 Hit SMS Group Order Intake in 2020

Technology supplier SMS group felt the impact of the coronavirus pandemic in its business in 2020. Order intake in 2020 fell by around 40% compared to the previous year to EUR 1,885 million including the service business which proved considerably more stable, decreasing by only 10% to EUR 665 million. The order backlog declined to EUR 3,028 million. This means that orders remain at a high level, though they no longer ensure full capacity utilization in all product areas. At EUR 2,745 million, sales were 6.5% down on the previous year. Even though the instrument of short-time working was used at a very early stage, the 2020 result was impacted by the consequences of the coronavirus pandemic and by provisions for the restructuring measures in Germany. As a result, SMS closed the business year with a clear loss: the pre-tax result stood at EUR minus 165 million.

Restructuring to secure competitiveness on the global market - For the coming years, SMS expects its core business of metallurgical plant construction to see stable development, though remaining short of its pre-pandemic level. To strengthen the competitiveness of the German sites and adjust the cost structure to the lower level of capacity utilization, personnel costs will have to be cut by approximately another EUR 100 million. Talks with the trade union IG Metall have already commenced.

Pooling of decarbonization competence - The global steel and non-ferrous metals industry is facing a great transformation challenge. Due to the ambitious environmental and climate targets that have been set in all key steel regions of the world, steel producers are coming under growing pressure to innovate and invest. The complete acquisition of Paul Wurth SA by SMS in April 2021 has led to all research and development activities in metallurgy and hydrogen technology being brought together under one roof. SMS group is now in a position to offer the entire range of technologies relevant to the decarbonization of metallurgical processes.

Growth in the service and Digitalization business - Besides decarbonization, the Digitalization, Automation and Technical Service businesses remain the key drivers of new orders. There is a growing trend toward integrated service packages, for example in the form of performance-based agreements. In addition, the 2020 business year saw an expansion of the service business via strategic buyouts: the acquisition of Vetta Tecnologia SA now enables SMS to offer its customers energy management solutions for the highly complex production chains in the metals industry.

Positive outlook - Many customers are currently reviving projects that had been put on hold and investing in new plant technology. SMS group’s regional focus, which assures greater proximity to markets, has already been bearing fruit. For the current business year, SMS expects order intake to rise clearly and sales to return to the level of 2019. For the next three years, SMS forecasts a significant recovery in its business, driven in particular by digitalization projects, the further expansion of the service business and the market launch of the joint ventures Primobius for battery recycling and BOXBAY for port logistics.

Source - Strategic Research Institute
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Acciaierie Venete Upgrades Refining at Meltshop in Padua Plant

As part of its production process development and efficiency upgrading plan, Acciaierie Venete has recently implemented a major investment focused on upgrading its secondary metallurgy processes in the Padua plant. The new equipment was installed and commissioned without affecting operation of the melt shop, thus guaranteeing production continuity without any interruption of steel supplies. The upgraded out-of-furnace shop is composed of 3 ladle furnaces, 2 vacuum degassing plants and 1 slag raking machine

From a qualitative perspective, the new set-up supports the achievement of several strategic objectives

1. Production of clean steels using a metallurgically robust, reliable and reproducible process

2. Improvement of inclusion properties in the production of engineering steels, benefiting all customers across the board

3. Development of new production methods in secondary metallurgy, exploiting the ability to add ferroalloys during the vacuum treatment process

4. Precise management of the various different production methods

These advances in secondary metallurgy are part of a programme of implementing the technological innovations necessary to maintain a position of leadership in the engineering steels sector in Europe.

Acciaierie Venete first began producing steel in 1957 operating in the field of commodities: ingots, billets and rebars. At the beginning of the 1980s, the company began to move towards the production of high quality long products, a process which led to it becoming one of Europe's leading producers in the engineering steel market. Acciaierie Venete has a production capacity of 1,800,000 tonnes/year of steel. This steel is produced in Padua, Sarezzo and Borgo Valsugana and transformed into finished products in Padua, Sarezzo, Mura, Dolcè, Odolo and Buja. For some applications, the steel is additionally processed in Modena and Idro. The steel produced by the company is used in a number of industrial sectors: automotive, earth-moving equipment and agricultural machinery, energy, mechanics and construction.

Source - Strategic Research Institute
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Steel Dynamics Sets Goal to Achieve Carbon Neutrality by 2050

Steel Dynamics Inc announced a goal to be carbon neutral by 2050 for its electric arc furnace steel mill operations. To achieve this target, the company also set interim emissions reduction and renewable energy milestones to be achieved by 2025 and 2030. On the path to carbon neutrality, Steel Dynamics is targeting a 20% Scope 1 and Scope 2 combined greenhouse gas emissions intensity reduction across its EAF steel mills by 2025 and a 50% reduction by 2030, compared to a 2018 baseline. Additionally, the company plans to increase the use of renewable electrical energy for its EAF steel mills to 10% by 2025 and 30% by 2030.

These goals expand on Steel Dynamics' existing sustainability focus, leading the steel industry for more than 25 years with its exclusive use of electric arc furnace technology, circular manufacturing model, and innovative teams creating solutions to increase efficiencies, reduce raw material usage, reuse secondary materials, and promote material conservation and recycling. Steel Dynamics plans to be a leader in this area with focus toward:

1. Identifying and implementing emission reduction projects

2. Improving energy management to reduce emissions and enhance operational efficiency

3. Increasing the use of renewable energy, including partnering with local utilities

4. Researching and developing innovative technologies

Based on International Energy Agency recommendations for the steel sector, Steel Dynamics' current steelmaking operations already fall within the 2050 intensity targets designed to meet the Paris Agreement and its 2°C scenario. Further, the company is aligned with the Science Based Targets Initiative as its EAF steel mills plan to meet the SBTi well below 2 degree Celcius scenario target for Scope 1 and 2 combined emissions intensity by at least 2030, based on the Iron & Steel Sectoral Decarbonization Approach.

Source - Strategic Research Institute
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US Steel Imports in June 2021 Surge by 12% MoM

Based on the Commerce Department’s most recent Steel Import Monitoring and Analysis data, the American Iron and Steel Institute reported that steel import permit applications for the month of June totaled 2,965,000 net tons. This was a 12.4% increase from the 2,637,000 permit tons recorded in May and a 17.5% increase from the May final imports total of 2,523,000 net tons. Import permit tonnage for finished steel in June was 1,982,000 net tons, up 6.8% from the final imports total of 1,856,000 net tons in May. Finished steel imports with large increases in June permits vs the May final imports include

1. Black plate, up 136% MoM

2. Heavy structural shapes, up 53% MoM

3. Oil country goods, up 38% MoM

4. Cold rolled, up 26% MoM

5. Wire rods, up 18% MoM

6. Reinforcing bars, up 17% MoM

7. Hot rolled, up 16% MoM

8. Cut lengths plates, up 16% MoM

9. Mechanical tubing, up 15% MoM

10. Plates in coils, up 14% MoM

11. Line pipe, up 13% MoM

12. Standard pipe, up 11% MoM

In June, the largest finished steel import permit applications, from May final, for offshore countries were for

1. South Korea 284,000 net tons, up 50% MoM

2. Japan 111,000 net tons, up 15% MoM

3. Germany 99,000 net tons, up 2% MoM

4. Taiwan 94,000 net tons, up 13% MoM

5. The Netherlands 86,000 net tons, up 36% MoM

For the first six months of 2021, total and finished steel imports were 14,756,000 net tons and 9,959,000 net tons, up 19.0% and 15.2%, respectively, from the same period in 2020. The estimated finished steel import market share in June was 21% and is 19% year-to-date. Products with significant year-to date increases vs. the same period in 2020 include

1. Light shapes bars, up 55% YoY

2. Hot rolled, up 54% YoY

3. Plates in coils, up 41% YoY

4. Cut lengths plates, up 34% YoY

5. Sheets and strip all other metallic coatings, up 31% YoY

6. Wire rods, up 25% YoY

7. Tin plate, up 24% YoY

8. Wire drawn, up 20% YoY

9. Galvanized hot dipped, up 12% YoY

10. Hot rolled bars, up 10% YoY

Through the first six months of 2021, from the same period last year, the largest offshore suppliers were

1. South Korea 1,341,000 net tons, up 19% YoY

2. Japan 514,000 net tons, up 19% YoY

3. Germany 414,000 net tons, up 10% YoY

Source - Strategic Research Institute
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