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Enel Peru to Supply Renewable Energy to Gerdau’s SIDERPERU

Strategic Research Institute
Published on :
22 Jul, 2.022, 6:32 am

Enel Perú and Gerdau’s SIDERPERU have signed a 12 year energy supply contract through which the electricity company will supply energy from its renewable plants to the operation of the steel mill. This alliance, which will last for more than a decade, involves part of the energy that will be produced by Enel's next non-conventional renewable energy plants Wayra Extension wind power plant and Clemesi solar plant. Enel will supply a capacity of 70 MW that will meet the electricity demand of SIDERPERU's operations, which will come from its renewable plants with hydro, solar and wind technology, including the production of Wayra Extension and Clemesi that will start operations in 2023. SIDERPERU will reduce its CO2 emissions to the environment.

The agreement provides for the installation of the first 500KWp solar plant, which may be expanded for self-consumption, in the SIDERPERU steel complex. This system will be installed by Enel X and is part of the solutions offered by the company on issues of distributed generation, a mechanism through which users can generate their own energy at various points of consumption or overcoming, increasing their savings in electricity billing. and reliability of supply.

In addition, during the term of the contract, Enel will issue SIDERPERU I-REC Certificates, which ensure that the energy that supplies its operations comes from renewable sources. As is known, I-REC is an international standardized renewable energy certificate and is accepted by the Greenhouse Gas Protocol, the carbon footprint accounting standard most used by large companies in the world, as an instrument to demonstrate reductions effective emission reductions in energy supply contracts.
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JISF Finds US’s AD Duty Decision for CR Imports Unjust

Strategic Research Institute
Published on :
22 Jul, 2.022, 6:35 am

The Japan Iron and Steel Federation Chairman Mr Yoshihisa Kitano said that “We believe that it is unjust and extremely regrettable that ITC has rejected our statements and concluded to continue the anti-dumping measures on Cold-Rolled Steel Products imported from Japan. The Japanese steel industry will carefully study this decision and determine a proper course of action.”

On 20 July 2022, the US International Trade Commission determined to continue the anti-dumping measures on Cold-Rolled Steel Products imported from Japan as a result of the sunset review. During the sunset review proceedings, the Japanese steel industry has claimed that the revocation of the anti-dumping measures on Cold-Rolled Steel Products imported from Japan is not likely to lead to continuation or recurrence of material injury to the US steel industry. However, US International Trade Commission imposed 71.35% AD Duty on Japan

The five year sunset review concerning Cold-Rolled Steel Flat Products from Brazil, China, India, Japan, South Korea, and the United Kingdom was instituted on 1 June 2021. On 7 September 2021, US ITC voted to conduct full reviews.
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Severstal Reports 6% YoY Decline in Sales in H1 of 2022

Strategic Research Institute
Published on :
22 Jul, 2.022, 6:37 am

Russian steel maker Severstal announced that its production and sales fell in the second quarter, reflecting repairs, lower demand and difficulties at accessing export markets. Severstal said “Its crude steel production fell 18% QoQ in April-June to 2.40 million tonnes due to repairs rescheduled to the period and narrowing demand for steel, while steel sales declined 17% QoQ to 2.27 million tonnes, with demand declining in the domestic market and due to issues exporting abroad.”

Production of hot metal was flat YoY at 5.3 million tonnes while crude steel production decreased by 7% YoY to 5.32 million tonnes, as a result of converter repairs which was rescheduled to Q2 2022. Steel sales were down by 6% YoY to 5 million tonnes, due to limited access to export markets followed by a decrease in the domestic demand. Semis sales were 12% higher YoY due to strong sales of pig iron to the USA in Q1 2022. Commercial steel sales were lower by 9% YoY to 2 million tonnes as a result of import ban imposed by the European Union in March 2022. HVA sales reduced b 7% YoY to 2.35 million tonnes mainly due to decline in galvanized steel and metalware sales. Iron ore sales to third parties reduced by 57% YoY to 1 million tonnes, due to a redistribution of sales to Cherepovets steel mill.

Severstal had to redirect sales to other markets after exports to the European Union were completely shut as a result of the war in Ukraine. Chief Executive Mr Alexander Shevelev said “The first half of 2022 was extremely challenging for Russian steelmakers and Severstal. Against the background of sanctions pressure, we were forced to take urgent steps to preserve the stability of the business. Thus, after the complete shutdown of exports to the EU countries, we had to redirect sales to other, less marginal markets, as well as rebuild our supply chain of inventory to ensure the operation of enterprises. The difficult access to exports followed by a decrease in the domestic demand, a sharp strengthening of the ruble and the decline in domestic prices altogether put a pressure on the company's results. The anti-crisis plan developed by the company's management, which is designed to ensure the company's stability even in the event of a negative development of the situation, involves a comprehensive audit of all the company's business processes and optimization of the least effective projects and initiatives in the medium term. By the end of this year, we aim to reduce administrative costs, personnel costs and outsourcing by a total of 10%. The management will make every effort to preserve the company's team, key competencies and expertise accumulated over the years. In addition, we will focus on improving the efficiency of procurement and maintenance programs, as well as continue to examine the investment program and to optimize it, primarily through initiatives with a long-term payback. We are confident that the well-coordinated work of the company's management and staff and the accumulated experience in improving the efficiency of processes will allow us to remain competitive in this difficult period.”
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POSCO Holdings Profit Squeezed by Coking Coal Prices in Apr-Jun

Strategic Research Institute
Published on :
22 Jul, 2.022, 6:39 am

South Korean steel giant POSCO Holdings has posted 4.5% drop in operating profit to KRW 2.1 trillion (USD 1.6 billion) in the April-June 2022 after raw materials costs rose more sharply than prices of its steel products. Its sales in the April-June quarter on a consolidated basis stood at KRW 23 trillion (USD 17.5 billion), up 25.7% YoY and net income was KRW 1.8 trillion, flat YoY. The operating profit of was driven by an increase in steel prices and robust business in the green infrastructure and future materials sectors. POSCO said “We were able to report profit, a feat highlighted by strong performance of all of our subsidiaries despite rising inflation and precarious global economic and financial conditions.”

Its trading subsidiary, POSCO International, registered a higher profit in the areas of steel, gas fields and food materials. Its construction unit won orders for city planning, urbanization and maintenance projects. Its chemical subsidiary logged a higher profit in the cathode materials business.

Korean analysts said “The third quarter earnings outlook of POSCO Holdings will not be as rosy as the second quarter, as indicated by falling prices of steel products over the past few weeks. This is compounded by a moderate increase in supply and concerns over an economic recession fanning an industry wide slowdown. Leading the bleak outlook is decreased demand due to prolonged COVID-19 lockdowns in Shanghai and seasonal weather factors including floods. Also at play is an increasing number of Chinese steelmakers resuming factory operations after the Beijing Winter Olympics ended.”
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Gestamp Trials ArcelorMittal’s XCarb Usibor 1500 for Auto Parts

Strategic Research Institute
Published on :
22 Jul, 2.022, 6:41 am

Global steel giant ArcelorMittal and Spain headquartered multinational Tier 1 automotive engineering company Gestamp have successfully trialed the use of low-carbon emissions steel for use in car parts that will ultimately be used in the production of vehicles in Spain and throughout Europe. Using Usibor 1500 made with XCarb recycled and renewably produced substrate, Gestamp has successfully trialed the first parts such as a car’s tunnel and seat reinforcements in press-hardenable steel, which is ultra high-strength and therefore enables car manufacturers to achieve excellent weight reductions across the vehicle. This first cooperation between a steel manufacturer and an automotive stamper paves the way for the greater use of low-carbon emissions steel in the automotive sector.

The two companies have signed an agreement to strengthen cooperation on sustainability, specifically in the production of low-carbon emissions steel parts and are working closely to ensure that ArcelorMittal’s steel meets all Gestamp’s technical requirements. In this process, Gestamp has a very important role in validating the low-carbon emissions steel produced by ArcelorMittal in order to meet the standards of excellence its automotive clients need. This challenge is the responsibility of Gestamp’s R&D team that, due to the Company’s know-how, has developed a detailed, step-by-step procedure to validate and homologate ArcelorMittal’s low-carbon emissions steel for use in vehicle production.

XCarb recycled and renewably produced is a decarbonized product made with a very high proportion of recycled steel in an EAF and 100% renewable electricity. The steel used by Gestamp has a carbon footprint that is almost 70% lower than the same product made without XCarb recycled and renewably produced. These are major steps forward in Gestamp’s ESG strategy to decarbonize their supply chain and contribute to the mitigation of climate change, collaborating to make these low-carbon emissions steel project a tangible reality and therefore, more sustainable vehicles.

Gestamp announced last year that it was the first Tier 1 supplier in the automotive sector to buy ArcelorMittal’s XCarb green steel certificates for the production of automotive components. XCarb is designed to bring together all of ArcelorMittal’s reduced, low and zero-carbon products and steelmaking activities. As part of the XCarb brand ArcelorMittal has launched two innovative offers for our customers: XCarb green steel certificates for products made via the Blast Furnace route and XCarb renewably produced for products made via the Electric Arc Furnace route using scrap.

Gestamp is a multinational specialized in the design, development and manufacture of highly engineered metal components for the main vehicle manufacturers. It develops products with an innovative design to produce lighter and safer vehicles, which offer lower energy consumption and a lower environmental impact. Its products cover the areas of bodywork, chassis and mechanisms. The company is present in 24 countries with more than 100 production plants, 13 R&D centers and a workforce of nearly 40,000 employees worldwide. Its turnover in 2021 was EUR 8.093 billion euros.
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Evraz Denies Claims of Supplying Materials to Russian Military

Strategic Research Institute
Published on :
22 Jul, 2.022, 6:44 am

Russian steel maker EVRAZ has denied speculation it is or has been supplying products to the Russian military which may have been used for military purposes. EVRAZ said “It notes recent press speculations regarding supply of materials for Russian military. EVRAZ denies the speculations that the Company is or has been supplying products to the Russian military which may have been used for the military purposes. EVRAZ in Russia supplies products to infrastructure and construction sectors for civilian use only.”

It added “EVRAZ implemented compliance system in 2014 which screens every customer and identifies red flags. To eliminate sanctions, economic and reputational risks the Company verify the end-users of products and secure their civil use by special clauses in contracts. The Company is not aware of its products being used for military purposes. Suggestions about potential use of EVRAZ’s steel, vanadium and other products for military purposes indicate not only the misunderstanding of steel industry’s base principles, but the lack of knowledge about EVRAZ’s product range as well.”

Organized Crime and Corruption Reporting Project claimed that Russian oligarch M Roman Abramovich’s Evraz group of companies supplied Russia’s National Guard and provided steel and explosives products to weapons manufacturers that supply the Russian military. OCCRP said “In fact contracts from Russia’s public procurement website, verified via an independent database of company contracts, show that Evraz’s Russian subsidiaries have directly and indirectly supplied the military for more than a decade. The contracts show they have supplied the National Guard as well as factories that supply the military and produce explosives and tanks. For example, Evraz ZSMK, received over USD 2.8 million between 2015 and 2018 to deliver toluene, an oil and coal product that is used in explosives, from a state-owned factory that produces ammunition and industrial explosives. In 2018, Evraz NTMK provided USD 1.4 million worth of steel to Uralvagonzavod, a Soviet-era factory that makes battle tanks and other transport machinery like freight train cars. In 2016 and 2017, the Evraz subsidiary also supplied the factory with USD 227,000 worth of vanadium slag, which is used to strengthen steel in the manufacture of weapons.”

Following Russia’s invasion of Ukraine in February, western governments moved to sanction Russian oligarchs benefitting from their relationships with President Mr Vladimir Putin. Among the most recognizable of these blacklisted businessmen is Mr Roman Abramovich, the fashion-conscious billionaire who became a household name in Europe after he purchased Chelsea Football Club in 2003.
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Tata Seeks UK Government Support to Decarbonize Port Talbot Plant

Strategic Research Institute
Published on :
22 Jul, 2.022, 6:51 am

The Financial Times reported that Tata Group has threatened to shut down Port Talbot steel plant if British government does not agree in the next year to provide GBP 1.5 billion of subsidies to help it reduce carbon emissions. Tata Group Chairman Mr Natarajan Chandrasekaran told the Financial Times “A transition to a greener steel plant is the intention that we have. But this is only possible with financial help from the government. We have been in discussions over the last two years and we should come to an agreement within 12 months. Without this, we will have to look at closures of sites.”

Financial Times, citing people familiar with the details, reported that “Under decarbonization plans, Tata Steel would close its two blast furnaces at Port Talbot, stop primary steelmaking and instead build two electric arc furnaces, which are less carbon intensive than blast furnaces. Building these electric arc furnaces and decommissioning the blast furnaces would cost around GBP 3 billion, with Tata seeking GBP 1.5 billion from the government.”

The subsidy sought by Tata exceeds the government’s current decarbonization funding for the sector, which includes a GBP 289 million Industrial Energy Transformation Fund and more than GBP 1 billion to support energy efficiency, low carbon infrastructure and research and development.

Tata Steel UK runs the Port Talbot plant and employs nearly 8,000 people across all its operations. As one of Britain’s largest industrial groups it is among the biggest emitters of carbon dioxide. Executives have been in talks with the government about decarbonization plans, but discussions have stalled.

In 2020, the sector accounted for 11.1% of Britain’s industrial emissions and 2.6% of all UK greenhouse gas emissions. Decarbonizing the UK steel industry is vital if the country is to meet its pledge to reach net zero greenhouse gas emissions by 2050. A government advisory body The Climate Change Committee has advised that the sector needs to be near zero by 2035. Around 80% of UK steel is made in blast furnaces at two sites: Tata’s Port Talbot plant in Wales and a British Steel site at Scunthorpe.

To create a Net-Zero steel sector in the UK and meet Government targets, a recent report from UK Steel calls for a renewed focus on establishing a positive policy environment for steelmaking. UK Steel Director General Mr Gareth Stace had said “Our report sets out how we want to work with Government in a partnership to deliver a steel sector fit not just for today, but for the future. The current administration is making real, tangible progress on this. The next Prime Minister should accelerate the progress already made to deliver on its Net Zero goals, for sectors like steel. The future of the steel industry in the UK depends on it.”
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Longs import markets bleed further in East Asia
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Import markets for rebar and wire rod in East Asia are quiet amid further price deterioration, Kallanish notes. The lack of any foreseeable price support, as well as persisting negativity continue to deter most buyers from returning to the market.

In Singapore, Malaysian-origin theoretical-weight rebar is the most competitive for cargoes trucked by road at $615/tonne dap (delivered at place), importing sources say. While this price level may attract some buyers, most will wait, a Singapore trader observed on Thursday. He believes there is enough inventory in the market. Last week, several small-tonnage orders of rebar from the same Malaysian mill concluded at $640/t.

Offers for theoretical-weight rebar from Vietnam are heard at $630-640/t cfr. Some traders are inviting bids for Middle Eastern rebar at $650/t cfr but these are subject to mills’ confirmation, an importer says. Kallanish assessed BS4449 500B 10-40mm diameter rebar at $615-620/t cfr Singapore theoretical weight, down $22.5 on-week.

Traders are giving offers for actual-weight rebar from Malaysia and the Middle East at $640-655/t cfr Hong Kong, importing sources say. A buyer estimates that Vietnamese rebar is offered at $665/t cfr Hong Kong. “I think that there are no deals at the moment,” he says. Inventory levels are currently high in the market.

Meanwhile, low-carbon wire rod offer prices are also falling in the region on account of traders' short selling in recent weeks. These offers are for open origin of Asean and Chinese material.

Small-tonnage deals for 6.5mm SAE 1008 regional wire rod concluded at the start of the week at $575-580/t cfr Manila. "But traders are now asking for lower bids," a Manila trader says. “The market crash is bad for buyers. As we speak, there are orders at $700/t levels which are being shipped or in transit.”

Bids are now being invited at $560/t cfr, which is $30 lower than last week, another Manila trader reports. Kallanish assessed SAE 1008 6.5mm diameter wire rod on Thursday at $570-580/t cfr Manila, down $25 on-week.

In Thailand, Malaysian 6.5mm, SAE1008 wire rod is currently offered at $550/t fob, which would be equivalent to $580/t cif Thailand. The offer is from a trader affiliated with the mill, so it is a short-position offer. Last week, regional offers were heard at $595/t cif.

Anna Low Singapore
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Wereldwijd weer minder staal geproduceerd
In alle belangrijke regio's daling.

(ABM FN-Dow Jones) De mondiale staalproductie is ook in juni gedaald. Dit bleek vrijdag uit cijfers van brancheorganisatie World Steel Association.

In totaal maakten de 64 staalproducerende landen in juni 158,1 miljoen ton staal. Dat is 5,9 procent minder dan juni 2021.

In China, wereldwijd met afstand de grootste fabrikant van staal, daalde de productie 3,3 procent tot 90,7 miljoen ton. Voor Azië en Australië als geheel was de daling iets minder sterk, namelijk 3,1 procent.

In Rusland, de voormalige Sovjet-Unie en Oekraïne daalde de productie met 34,3 procent tot 5,9 miljoen ton.

In de EU was de daling 12,2 procent tot 11,8 miljoen ton, waarbij de productie in Duitsland met 7,0 procent terugviel.

Door: ABM Financial News.

info@abmfn.nl

Redactie: +31(0)20 26 28 999
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Global Crude Steel Production in H1 of 2022 Dips 6%

Strategic Research Institute
Published on :
25 Jul, 2.022, 5:31 am

World Steel Association announced that global crude steel production for the 64 countries reporting to worldsteel was 158.1 million tonnes in June 2022, 7% decrease compared to May 2022 & 6% YoY mainly due to YoY shrinkage in crude steel production in top 10 producing countries, except for India which registered YoY growth of 6.3%. During January- June 2022, global crude steel production totaled 949.4 million tonnes down 5.5% YoY, with China producing 526.9 million tonne down 6.5% YoY & India 63.2 million tonne up 8.8% YoY

June 2022

1. China – 90.7 million tonne down 6% MoM & 3.3% YoY

2. India - 10.0 million tonne up 6.3% YoY

3. Japan – 7.4 million tonne down 8.1% YoY

4. United States – 6.9 million tonne down 4.2% YoY

5. Russia – 5.0 million tonne down 22.2% YoY

6. South Korea – 5.6 million tonne down 6.0% YoY

7. Germany -3.2 million tonne down 7.0% YoY

8. Turkey – 2.9 million tonne down 13.1% YoY

9. Brazil – 2.9 million tonne down 6.1% YoY

January – June 2022

1. China – 526.9 million tonne down 6.5% YoY

2. India – 63.2 million tonne up 8.8% YoY

3. Japan – 46.0 million tonne down 4.3% YoY

4. United States – 41.2 million tonne down 2.2% YoY

5. Russia – 35.4million tonne down 7.2% YoY

6. South Korea – 33.8 million tonne down 3.9% YoY

7. Germany -19.6 million tonne down 5.5% YoY

8. Turkey – 19.0 million tonne down 4.6% YoY

9. Brazil – 17.4 million tonne down 2.9% YoY

10. Iran – 13.6 million tonne down 10.8% YoY
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AIC to Upgrade Automation of Mescier’s Section Mill in Turkey

Strategic Research Institute
Published on :
25 Jul, 2.022, 5:38 am

Automazioni Industriali Capitanio will supply completely renovated electrical and automation equipment for the new Mescier Section Mill at Karabük in Turkey. The project will relocate an AIC plant installed for a different customer in Turkey in 2005, adding to the other two rolling mills already operating at the site. The project will aim to increase the productivity of the site and expand to different market products, mainly sections and profiles.

The project includes the re-use, as much as possible, of the previously supplied equipment for automation and power systems. Conversely, the HMI and mill supervision system will be replaced with brand-new devices due to the obsolescence of the existing IT components.

Added to the package will be included engineering & electrical drawings for the new cooling bed entry and exit areas. This step will enable the customer to efficiently perform mill control systems and optimize cut length cycles.

The production startup is estimated in 2023.

AIC Capitanio Tailored Automation is a global system integrator that designs, manufactures and commission turn-key plants worldwide, providing advanced and tailored automation and mechatronics solutions for the steel industry, with the aim to continuously improve efficiencies, competitiveness and safety of the production processes.

AIC is a global system integrator providing advanced and tailored automation and robotic solutions for the steel industry, with the aim to continuously improve efficiency, competitiveness and safety of the production processes. With more than 1000 applications worldwide and more than 40 years of history, AIC can boost a unique experience in both greenfield and revamping projects in meltshops and long products rolling mills.
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BaoSteel selects Energiron ZR Technology for DRI Project

Strategic Research Institute
Published on :
25 Jul, 2.022, 5:41 am

China’s leading steel producer Baosteel Zhanjiang Iron & Steel has entrusted Energiron alliance of Tenova & Danieli for its new direct reduction plant to be installed Zhanjiang Economic and Technological Zone in the Guangdong Province of China. Featuring Energiron Zero Reformer technology it will produce 1 million tonne per year of quality DRI by using natural gas, coke-oven gas, and hydrogen up to 100%. The startup of the innovative plant is scheduled by beginning 2024.

Baosteel Zhanjiang will be the largest hydrogen-based DR plant in China and in the world, capable to lower carbon dioxide emissions thanks to the extensive use of hydrogen and the intrinsic capacity of Energiron DRI plants to capture the CO2 generated by the reduction process. The DRI produced by Baosteel Zhanjiang will satisfy the need of virgin DRI of the group.

Baosteel Zhanjiang order follows the one received from HBIS for the first DRI plant in China, awarded to Energiron alliance in 2020. All Energiron DRI plants are hydrogen-ready by design and can start using hydrogen as reduction gas without equipment modifications. DRI pellets processed by Energiron plants allow up to 96% metallization and variable carbon-content ranging from 0.5% with extensive use of hydrogen, and up 4.5% using 100% natural gas. Energiron is the DRI technology jointly developed by Tenova and Danieli.
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Bilstein Cold Rolled Steel Completes Bowling Green Expansion

Strategic Research Institute
Published on :
25 Jul, 2.022, 5:43 am

Bowling Green Kentucky US based Bilstein Cold Rolled Steel has opened its newly-completed expansion. The company originally announced Bowling Green as their new home in 2013 with an investment of USD 120 million. Shortly after in 2015, Bilstein announced its first expansion with an additional USD 20 million of investment. In addition, Bilstein began operations in 2017 in the Kentucky Transpark and last year announced this additional USD 17.8 million investment and expansion. This expansion will allow Bilstein Cold Rolled Steel to continue providing our customers the high-grade cold-rolled steel in a larger, faster capacity.

The Bilstein group is a seventh-generation, family-run group of companies with headquarters in Ennepetal in Germany. The internationally renowned product brands febi, SWAG and Blue Print are united under its strong umbrella. With 22 international subsidiaries and agencies in more than 70 countries, they produce a wide range of high-precision, cold-rolled strip steel products across a variety of industries, mainly the automotive industry.
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JSW Steel Seeks Export Duty Waiver

Strategic Research Institute
Published on :
25 Jul, 2.022, 5:44 am

The Telegraph reported that JSW Steel’s Joint Managing Director & Group CFO Mr Seshagiri Rao told The Telegraph that steel prices are not contributing to the inflation in India and hoped that the government would lift the 15% export duty by the festive season. Mr Rao said “Waiver of export duty would be a very important factor that would play out in the second half.”

Mr Rao said “India’s production fell by 2%, exports fell by 26% & consumption fell by 5.6%. We lost the opportunity to export and it was leveraged by China.”

Mr Rao also said that it would be possible to meet production shortfall during the next three quarters but meeting sales target would be contingent upon how soon the export duty is lifted.
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Tata Steel Feijen Service Center Installing Leveller & CTL Line

Strategic Research Institute
Published on :
25 Jul, 2.022, 5:47 am

Tata Steel Europe has commissioned FIMI to supply a high-performance levelling and cut to length line with an automated packaging system designed for high-strength strip steels. At the Maastricht Service Centre in Feijen in Netherlands, a subsidiary of Tata Steel Nederland, work has begun on the installation of a new state-of-the-art, high-performance levelling and cut to length line with automated packaging. With the commissioning of this new line, high-tensile coils will be able to be processed even faster and with greater accuracy. In addition, the line will be capable of handling particularly demanding challenges across a wide variety of products: for example, it will process coils weighing up to 40 tonnes and a yield strength of up to 1600 N per square mm, with the highest hardness levels available, in widths of up to 2150mm and thicknesses from 1.5-13mm, running up to 40 meters per minute.

This is part of Tata Steel’s plans to prepare for increasing future demand for abrasion-resistant and high-strength premium steels, particularly in the markets for equipment in construction, mining and agriculture. Thanks to the new decoiling line, these steels can be processed quicker, more accurately, to a wider window and in a more sustainable way. The finished plates will be delivered to customers in Germany, Eastern Europe, the Benelux markets, the UK and to the Nordic region. The commissioning of the new decoiler, supplied by equipment maker FIMI, is scheduled for mid-2024.

The end-products processed by the line will have high flatness levels of less than 3 mm per meter, to very tight dimensional tolerances (less than ± 2.5 mm up to 12,000 mm sheet length). The premium products processed at Feijen include the abrasion-resistant steel Valast 450, used in agricultural and construction equipment, tippers and trailers, ultra-high strength steels including Tata Steel’s Ympress range from USD 700-1100 and higher, and Boron-Manganese MnB5 steels for applications in farming equipment, for example.

The high finished plate quality will be possible thanks to the power of the new line, but also by a number of automated features, which make the process more sustainable. The new line will be highly automated facilitating high productivity in a very safe manner. The automated functions and applications include: automated loading and threading, an automated robot destrapping unit and automated thickness and dimensional measurement.
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Cleveland-Cliffs Reports USD 601 Million Income in Apr-Jun 2022

Strategic Research Institute
Published on :
25 Jul, 2.022, 5:48 am

US steel giant Cleveland-Cliffs has reported that consolidated revenues were USD 6.3 billion in April-June 2022 quarter, compared to the prior-year second-quarter revenues of USD 5.0 billion with net income of USD 601 million. For the January-June 2022, revenues were USD 12.3 billion with net income of USD 1.4 billion. Second-quarter 2022 steel product sales volumes of 3.6 million net tons consisted of 33% coated, 28% hot-rolled, 16% cold-rolled, 7% plate, 5% stainless and electrical, and 11% other, including slabs and rail

Cliffs' Chairman, President & CEO Mr Lourenco Goncalves said “Our industry leading exposure to the automotive sector separates us from all other steel companies in the United States. The health of the steel market over the past year and a half has been largely driven by the construction sector, with automotive lagging far behind -- mainly due to supply chain issues unrelated to steel. Nevertheless, with automotive demand outpacing production for more than two years now, the consumer backlog for cars, SUVs and trucks has become enormous. As supply chain problems continue to be resolved by our automotive clients, pent-up demand for electric vehicles continues to increase, and light vehicle manufacturing catches up with demand, Cleveland-Cliffs will be the primary beneficiary among all steel companies in the United States. This important distinction of our business relative to other steel producers should become clear as we progress through the remainder of this year and into next year.”

Outlook – “Based on the current 2022 futures curve, which implies an average hot-rolled coil steel index price of USD 850 per net ton for the remainder of the year, the Company would expect its full-year 2022 average selling price to be approximately USD 1,410 per net ton. This incorporates the Company's expectation of substantial increases in fixed price contracts resetting on October 1, 2022.”
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JSW Steel Expects to Calibrate 2022-23 CAPEX at INR 15,000 Crores

Strategic Research Institute
Published on :
25 Jul, 2.022, 5:51 am

India’s largest steel maker JSW Steel while reporting its financial results for April-June 2022 quarter, said that the 5 million tonne per annum brownfield expansion at Vijayanagar is progressing well, with civil works underway at the site. Long lead-time items have been ordered and Letters of Credit established. The project is expected to be completed by end of 2023-2024.

The remaining downstream projects at Vasind and Tarapur are expected to be completed in Q2 FY23.

The expansion at BPSL to 3.5 million tonne per annum is progressing well and is expected to be completed during Q2 of FY23. The Phase-ll expansion, from 3.5 million tonne per annum to 5 million tonne per annum, is expected to be completed by FY24.

The Company's capex spend was INR 3,702 crores during Q1 of 2022-23, against the planned capex spend of INR 20,000 crores for 2022-23. Considering the current market conditions, the company expects to calibrate its capex spend to INR 15,000 crores for 2022-23.
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China Extends AD Duty on CRGO Electrical Steel

Strategic Research Institute
Published on :
25 Jul, 2.022, 5:53 am

China's Ministry of Commerce has extended the antidumping duties on imports of grain oriented flat rolled electrical steel from Japan, South Korea & European Union for five years effective from 23 July 2022.

Japan -39.0-45.7%

EU - 46.3%

Korea - 37.3%

The tariffs were reinstated after year-long investigation which was launched in June 2021 following a petition by steelmakers BaoSteel & Shougang which argued that ending the tariffs could lead to further dumping, hurting the domestic steel sector.

Cold Rolled Grain Oriented Steel is used in particular to laminate any heavy transformer as a core. CRGO steel has exceptionally high mechanical elasticity and magnetic properties in the rolling direction. These crystals are often arranged by cold rolling at room temperature to coordinate the direction of grain formation in a specific direction. Since the magnetic properties during cold rolling depend on individual micro-crystals and direction of growth orientation. This can be further improved on the basis of different production processes and even heat treatment or annealing. While manufacturing CRGO Steel Cores the level of carbon, nitrogen, and oxygen must be kept at a very minimum level to avoid the formation of carbides and oxides. As these formed compounds alloys must be kept below 1 micrometer in size as these compounds are responsible for increasing the hysteresis losses and decreasing the permeability of the material. Grain size in cold rolled grain oriented steel is always in larger and uniform sizes due to large grain size magnetic losses being reduced. In general, CRGO steel cores come in a normal range of 0.3 mm to 0.25 mm. When these materials are stacked or wound together to give the transformers and other electrical devices a strong magnetic core. As a thumb rule, 3% of the silicon composition for CRGO steel is considered better as more silicon makes the sheet very brittle, which increases the electrical resistivity and decreases the losses due to eddy current.
voda
0
SSAB Reports Strong Results for Apr-Jun’22 on High Steel Prices

Strategic Research Institute
Published on :
25 Jul, 2.022, 5:55 am

Swedish green steel leader SSAB has reported revenue was SEK 35.516 billion for April-June 2022 quarter & operating profit of SEK 10.395 billion. SSAB’s operating profit exceeded SEK 10 billion for the first time for a single quarter as all business segments posted strong results, driven by a combination of high steel prices and solid internal performance. SSAB Special Steels reached a new record for shipments and operating profit increased to SEK 2.392 billion while SSAB Europe’s operating profit for the second quarter increased to SEK 4.070 billion and SSAB Americas’ operating profit increased to SEK 3.512 billion. Higher steel prices were an important factor behind the improved results, in combination with stable production and continued good cost control.

In conjunction with the invasion of Ukraine, SSAB stopped sales to Russia and Belarus as well as discontinued new purchases of ore and coal from Russia. Ruukki Construction has minor operations in Ukraine and these could be partly re-started during the second quarter.

SSAB also strengthened its position as the leader in the green transition in the steel industry and continues to deliver pilot volumes for a number of selected partnership projects. Customer demand for fossil-free steel continues to increase. During the quarter, Volvo Construction Equipment delivered the world’s first construction machine built of SSAB fossil-free steel and during the third quarter of 2022, Volvo Trucks will start small-scale introduction of fossil-free steel in heavy-duty electric trucks. SSAB also began collaboration with Alfa Laval on the world’s first heat exchanger to be made using fossil-free steel, with the first unit planned for 2023. The second quarter saw the inauguration of HYBRIT’s pilot facility for hydrogen gas storage, the first of its kind, in Svartöberget, Luleå. Work on the feasibility studies for SSAB’s planned mini-mills in Luleå and Raahe is proceeding towards the goal of fossil-free production at around 2030, but the transition requires sufficient availability of fossil-free electricity in the right place at the right time.

SSAB said “The market outlook is uncertain, due to rising inflation, component shortages and bottlenecks in logistics chains, among other things. There are also risks for disruptions relating to sanctions and other fallout from the war in Ukraine.”
voda
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JSW Steel Cuts Capacity Utilization to 93% in Apr-Jun’22 Quarter

Strategic Research Institute
Published on :
25 Jul, 2.022, 5:57 am

India’s largest steel maker JSW Steel while reporting its financial results for April-June 2022 quarter said “The global economic outlook has weakened due to high inflation across most economies, with elevated energy and food prices affecting consumption. The ongoing Russia-Ukraine conflict and frequent Covid related lockdowns in China have disrupted global supply chains, and caused spikes in energy prices. The World Bank, in its June outlook, has reduced its global growth forecast to 2.9%, from 4.1% in January.”

JSW Steel said “ In the United States, while PMI and IIP data still remains positive, the trend has been declining over the last few months. Aggressive tightening by Federal Reserve to tame high inflation is likely to impact investments and consumption. The Services sector remains healthy due to pent up demand, but high inflation is eroding purchasing power and consumer confidence. The employment and jobs data remains robust so far. European countries have been more severely impacted by higher energy costs emanating from the Russia* Ukraine crisis in their backyard. Policy rate tightening by the ECB, BoE and other central banks to control inflation will impact economic growth. The Services sector has been resilient so far but could weaken due to high inflation. China's zero-Covid strategy is hurting economic activity as well as consumer confidence. The recent fiscal and monetary stimulus and step up in policy action by the government to stimulate growth is expected to drive a gradual recovery in the coming quarters.”

It said “The risks of a recession in advanced economies have risen in the last few months. Inflation coming off sharply, higher energy supply, easing Covid situation in China and de-escalation of geopolitical tensions are positives to stave off recessionary conditions.”

JSW Steel added “Despite weakening global macroeconomic trends, India remains relatively resilient so far and continues to be the fastest growing major economy in the world with manufacturing, consumption and services sectors showing healthy traction. The Government's focus on infrastructure and social investments should continue, supported by healthy tax collections, despite some pressures to the fiscal balance. Merchandise exports from India continue to remain healthy, with re-alignment of global supply chains offering significant long term opportunities. The outlook for two-wheelers is showing positive signs on the back of healthy revival in rural demand, while the demand for passenger vehicles continues to remain high, even as commercial vehicles demand has seen some softness. The residential real estate sector remains strong with falling inventories, increasing new project launches and limited impact of rising interest rates so far. Healthy power consumption growth should drive investments in new capacities, especially renewables. However, high inflation and energy costs are having some impact on domestic consumption. Policy rate tightening by the RBI and global central banks along with slowing global growth could impact near-term GDP growth.”

It concluded “India's steel consumption during Q1 of 2022-23 was 27.36 million tonnes, down 5.6% QoQ, while exports fell 26% to 2.88 million tonnes due to the weaker global demand and imposition of export duty. Considering volatile market conditions, the Company preponed certain shutdowns that were scheduled during the year, which lowered the average capacity utilization, excluding Dolvi Phase-ll, for Q1 of 2022-23 to 93% from 98% in Q4 of 2021-22. The 5 million tonnes per annum Dolvi Phase-ll expansion continued to ramp up and will drive volume growth as demand recovers in the coming quarters.”
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