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Steel & Tube Reports Record Results for FY 2022

Strategic Research Institute
Published on :
22 Aug, 2022, 5:54 am

Auckland headquartered New Zealand’s Steel & Tube has reported record results for the 12 months ended 30 June 2022, with profit almost double that of the prior year, as the company moves its focus to growth. Steel & Tube Chief Executive Officer Mr Mark Malpass said “Our priority is to make it easy for our customers to transact with us and I would like to acknowledge our people, who have done an outstanding job of doing just that. Despite the volatile steel pricing environment, rising costs and continuing supply chain disruption, we have been able to source, supply and deliver products to our customers in a timely manner. We are seeing the benefits of our focus on operational excellence and supply chain management which has allowed us to control costs and deliver improved performance in a more challenging environment. A continued investment in digital technology is delivering improved customer service and efficiency. We will continue to build on our core strengths and are excited about the growth opportunities we are investing in.”

FY 2022

Sales – 0.167 million tonnes, up 6% YoY

Revenue – NZD 599 million, up 25 YoY

EBITDA - NZD 67 million, up 73% YoY

Profit - NZD 30 million, up 96% YoY

Mr Malpass said “While global and local economies traverse an inflationary environment, there will still be strong demand for steel. Pricing is expected to remain at current elevated levels for the balance of the calendar year. As shipping and supply chain congestion eases, inventory cover levels are expected to reduce. Steel & Tube’s journey has taken us from a relentless focus on cost and operational discipline under Project Strive, to now having the foundation and ability to focus on growth and building a more diversified, resilient business. Our two primary strategic pathways are continuing to strengthen our core and investing in high value products, services and sectors to drive gross margin improvement. One such opportunity is in added value plate processing where we have invested into new equipment to expand our plate processing capability and offer. Another example is our Fasteners NZ purchase in July 2021, a niche operator that has performed extremely well in FY22. More recently, on 1 August we acquired Kiwi Pipe and Fittings, in line with our strategy to invest in high value sectors, and which provides us with scale and market share growth in the fire and water reticulation sector. This acquisition was immediately earnings positive and expected to add over 0.5 cents to earnings per share in FY23.”

Steel & Tube is a diversified steel processor & distributor of steel across New Zealand since 1953.
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TEDA & Delong Steel Plan 10 Million Tonne EAF Steel Plant in Saudi

Strategic Research Institute
Published on :
22 Aug, 2022, 5:56 am

Kallanish reported that China's Tianjin TEDA Investment Holding Group and Delong Steel Group's New Tianjin Steel have signed a strategic cooperation agreement this week to seek investment in steel projects in Saudi Arabia. The two companies will carry out cooperation on developing a 10 million tonnes per year steel making industrial park in Saudi Arabia. This will mainly comprise an electric arc furnace-based steel plant.

New Tianjin Steel was acquired by Delong Group after bankruptcy and reorganization in 2019. It is constructing two 1,780 cubic meter blast furnaces in She County in Handan in Hebei Province with a joint capacity of 3 million tonne per year.

China's TEDA Group has rich political and business resources in the Middle East, and is familiar with the overseas market development procedures of Chinese companies. Its China-Africa TEDA Company once led the development of the China-Egypt TEDA Suez Economic and Trade Cooperation Zone. In 2019, TEDA and the Saudi Authority for Industrial Cities and Technology Zones MODON signed a cooperation agreement to promote the investment of Chinese companies in Saudi Arabia.
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German Crude Steel Production Shrinks by 5% in Jan-Jul 2022

Strategic Research Institute
Published on :
22 Aug, 2022, 5:58 am

The German Steel Federation WV Stahl announced that crude steel production in Germany is still in reverse gear. In July 2022 almost 3 million tonnes of crude steel was produced, down 2% YoY. In the period from January to July 2022, crude steel production is down 5% YoY.

July 2022

Crude Steel - 2.97 million tonne, down 2% YoY

Oxygen Steel - 0.00 million tonne, flat YoY

Electric Steel - 0.84 million tonne, down 8% YoY

Hot Metal - 1.99 million tonne, up 3% YoY

Hot Rolled Steel - 2.75 million tonne, down 2% YoY

January-July 2022

Crude Steel - 22.53 million tonne, down 5% YoY

Oxygen Steel - 15.47 million tonne, down 5% YoY

Electric Steel - 7.06 million tonne, down 5% YoY

Hot Metal - 14.23 million tonne, down 5% YoY

Hot Rolled Steel - 20.00 million tonne, down 5% YoY
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Libyan Iron & Steel Co Restarts Rebar Plant

Strategic Research Institute
Published on :
22 Aug, 2022, 6:00 am

Libyan Iron & Steel Co announced that the rolling" factory No 2 for rebars was reopened on 19 August, after a month-long hiatus. LISCO said that re opening process took place as planned and 12mm rebar was produced in technical specification PS500.

Founded in 1979, the Libyan Iron & Steel Co is considered one of the largest industrial companies in Libya, located on an area of 1,200 hectares near the town of Misrata, just 210 kilometers to the east of the city of Tripoli. The design capacity of the company’s 1.324 million tonnes of liquid steel per annum adopts direct reduction of iron pellets using domestic natural gas. Libyan Iron & Steel Co also has Bar & Rod Mills, Section Mill, Hot Strip Mill, Cold Rolling Mill and Galvanizing Lines.
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Gibraltar to Auction Axioma Yacht of TMK Owner Mr Pumpyansky

Strategic Research Institute
Published on :
22 Aug, 2022, 6:02 am

Gibraltar Government plans to auction seized Axioma luxury yacht on plea of US investment bank JP Morgan, which claims that yacht’s owner Mr Dmitry Pumpyansky, owes it more than GBP 17 million. Axioma was seized by the Gibraltar Government after docking in Gibraltar in March. A spokesperson for Gibraltar Courts Service said “The Axioma was arrested following the filing of an admiralty claim in the supreme court. Given that the sale is by auction, pursuant to an order of the court, the Admiralty marshal cannot say how much it is expected to sell for or how many people have expressed interest.”

Mr Nigel Hollyer, the broker to the Admiralty marshal of the supreme court of Gibraltar leading the auction, said that there has been an unexpected late surge by prospective buyers and more than 30 had flown to Gibraltar to inspect the yacht in person.

JP Morgan said the fact the Mr Dmitry Pumpyansky had been subjected to sanctions meant the terms of the loan had been breached because it legally could not accept loan repayments from Pyrene, and asked the Gibraltar courts to detain and sell the yacht.

Mr Dmitry Pumpyansky, the owner and chairman of the steel pipe manufacturer TMK was subjected to sanctions by the UK, EU and the US after the invasion of Ukraine due to connections with Russian President Vladimir Putin. 58 year old Mr Pumpyansky graduated from the Kirov Ural Polytechnic Institute in 1986 and earned a Candidate of Sciences (Engineering) and a Doctor of Science (Economics). Mr Pumpyansky started as a metals trader, then ran several metal factories, then took over the Sinarsky Pipe Factory. Mr Pumpyansky joined TMK in 2002.] Together with fellow billionaires Mr Sergei Popov and Mr Andrey Melnichenko, they bought the company, and he bought them out in 2006, becoming the 100% owner. Making pipes became the source of Mr Pumpyansky's wealth. His TMK, a supplier to Gazprom since 1998, is No.1 in Russia. He was the chairman of TMK. On the 9th of March, 2022 TMK said in a statement that Pumpyansky is no longer a beneficiary of the Russian pipe manufacturer and has resigned from the company's board of directors. In 2011 Mr Pumpyansky's JV with Siemens won USD 2.7 billion contract from Russian Railways to deliver modern trains called Lastochka, swallow bird. His companies also gave a face lift to a stadium that hosted the 2018 World Cup in Ekaterinburg.

The 72.5 meter Axioma features six luxurious guest cabins, a swimming pool, a 3D cinema room, gym, Jacuzzi and a fully equipped spa. The yacht, which was designed by the famed super yacht designer Alberto Pinto, was built by Dunya Yachts in Turkey in 2013. The boat, which was originally named Red Square before being renamed Axioma, was available for other millionaires to charter for USD 558,500 a week. The debut build from Dunya Yachts, AXIOMA embodies the world’s top superyacht craftsmanship, engineering and materials, making her a standard-bearer of the shipyard’s pedigree.
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Hyundai Steel Pioneering Waste Recycling in Korea

Strategic Research Institute
Published on :
22 Aug, 2022, 6:04 am

Korea Herald reported that South Korea’s second largest steel maker Hyundai Steel is betting big on waste recycling in its renewed push for carbon neutrality as illustrated by its recycling of coffee grounds, cow dung and waste sludge from semiconductor manufacturing. Hyundai Steel has signed a memorandum of understanding with the Incheon Yeonsu Rehabilitation Center to accelerate related research for using coffee grounds in steel making. The North Gyeongsang Province Government Public Institute of Health and Environment will carry out a study on the effectiveness of utilizing used coffee grounds in reducing odor in livestock farms. Out of 150,000 tonnes of coffee beans imported annually, only 0.2% actually goes into the coffee, while the remaining 99.8% are discarded as waste. In March this year, the Environment Ministry designated used coffee grounds as a sustainable resource that can be recycled for diverse industrial uses.

Hyundai Steel has also started to replace furnace fuel with cow excrement-based fuel in collaboration with the Ministry of Agriculture, Food and Rural Affairs and the National Agricultural Cooperative Federation. Korea produces about 22 million tonnes of cow dung every year, accounting for over 2 million tonnes of annual greenhouse gas emissions. Most is used as fertilizer. However, alternative utilization will see 4 tonnes of dung being recycled to make 1 tonne of blast furnace fuel. It is estimated that the use of one ton of cow excrement-based fuel will have the environmental effect of reducing 1.5 tonnes of greenhouse gas, while helping to reduce reliance on imported raw materials.

Hyundai Steel has also teamed up with Samsung Electronics on recycling wastewater sludge generated in the process of semiconductor manufacturing. Fluorite is a common raw material used at ironmaking and steelmaking facilities. It is the mineral form of calcium fluoride, a chemical also found in wastewater sludge from the chip industry. In April this year, Hyundai Steel succeeded in producing steel materials by using fluorite recycled from the wastewater sludge. Steel makers here used to depend entirely on imports for the material. But with the latest breakthrough, Hyundai Steel now secures 10,000 tonnes of fluorite, out of the total 20,000 tonnes needed, on its own, with plans to expand the portion in phases. The last feat was achieved jointly by Hyundai Steel, global tech giant Samsung Electronics and POS Ceramics, a local industrial by-product processor and recycler. The three have developed a new technology that can reuse wastewater sludge from semiconductor manufacturing as input material for steel manufacturing.
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JSW Steel Ropes inNew Zealand’s National Steel for Shredding Plant

Strategic Research Institute
Published on :
22 Aug, 2022, 6:06 am

Indian steel giant JSW Steel plans to set up scrap shredding facilities in India in a joint venture with New Zealand's metal recycler National Steel Holdings Limited and has signed 50:50 joint venture agreements on 18 August 2022. Both firms will share expertise about industry-leading machinery, technical know-how and relevant processes.

Auckland New Zealand based National Steel is a full-service metal shredding, a recycling company situated in Manukau in New Zealand. It’s network of collection facilities collects process and recycle ferrous metals and nonferrous metals collected from across New Zealand.

India launched the national vehicle scrapping policy in August last year aiming to phase out unfit and polluting vehicles, while increasing domestic scrap metal processing capacity and reducing dependency on scrap imports.

JSW had set a target for achieving 42% reduction in carbon emissions by 2030 from a 2005 baseline last year. It had also issued sustainability linked bonds, while its sister company JSW Future Energy had reached an agreement with Australia's Fortescue Future Industries to develop green hydrogen projects in India for use in steelmaking.
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UK OFSI Extends License to EVRAZ NA to Continue Till 31 March 2023

Strategic Research Institute
Published on :
22 Aug, 2022, 6:09 am

Interfax reported that UK's Office of Financial Sanctions Implementation has issued extension to license to EVRAZ North America to continue operations until 31 March 2023. UK's Office of Financial Sanctions Implementation had sanctioned EVRAZ on 29 April saying “The steel manufacturing and mining company operates in sectors of strategic significance to the Government of Russia. Evraz produces 28% of all Russian railway wheels and 97% of rail-tracks in Russia.”

Russian steel maker EVRAZ has launched the process of soliciting proposals for the acquisition of its North American subsidiaries EVRAZ North America on 10 August. The sale will allow unlocking of the stand-alone value of the North America business. The solicitation process is currently being conducted under the Office of Financial Sanctions Implementation General License INT/2022/1710676 and EVRAZ is in contact with OFSI as part of this process. The possible transaction will be subject to regulatory and corporate approvals and applicable sanctions laws, and will require approval from relevant sanctions authorities, including OFSI.

EVRAZ North America is a leading, vertically-integrated producer of engineered steel products for the North American rail, energy, industrial and construction markets. ENA has steelmaking capacity of 2.3 million tons and finished steel, including tubular products, capacity of 3.5 million tons and operates 2 EAF-based steel facilities, 4 rolling mills and 8 tubular mills and 17 scrap recycling facilities. EVRAZ North America is also constructing a state of the art 320 Greenfield rail facility which will replace existing rail mill; project expected to be completed by 2023. Having strong financial results (2021 sales of USD 2.4 billion and Adjusted EBITDA of USD 320 million), EVRAZ NA can provide stable income and cash flow to its new investor.
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Nippon Steel Admits Cyanide Water Leaks at East Nippon Works

Strategic Research Institute
Published on :
22 Aug, 2022, 6:10 am

Japan Times reported that Japanese steel giant Nippon Steel has admitted that it failed to properly report leaks of water containing highly toxic cyanide from company's East Nippon Works in the city of Kimitsu in Chiba Prefecture plant in eastern Japan on 39 occasions from February 2019. Nippon Steel said that it re-examined data on the quality of discharged water checked over the past three to five years and found readings worse than those reported to authorities including the Chiba Prefectural Government

Nippon Steel detected cyanide exceeding legal limits from samples taken from a water outlet but failed to report the facts properly. There were also cases in which the company redid water checks to record only results that met the legal standards. The maximum amount detected was 0.6 milligram per liter, or six times the allowed limit.

In June, reports surfaced that the river nearby turned brown and slightly red, while dead fish floated after liquid had flowed from the facility.
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Swiss Steel to Become Market Leader in Green Steel Production

Strategic Research Institute
Published on :
22 Aug, 2022, 6:12 am

Lucerne Emmenbrücke based green steel leader Swiss Steel Group is on average 78% better than producers pursuing the blast furnace route when it comes to CO2 emissions as it is one of the Europe’s largest steel producer using the EAF route. Swiss Steel Group works exclusively with high-grade steel scrap. This measure massively reduces the CO2 footprint compared to the traditional process of making new steel from mined iron ore. The better the quality of the scrap, the better and more environmentally friendly and sustainable the steel produced. This is an important prerequisite for producing Green Steel.

Swiss Steel Group has invested around 60 million euros in a new walking beam furnace as well as other equipment at the Steeltec plant in Emmenbrücke, Switzerland, making this one of the largest investments for the location as well as the entire Swiss Steel Group in recent years. The new furnace improves the efficiency of the rolling mill considerably and consistently makes its processes more sustainable. Thanks to its high degree of specialization, it is very economical in its use of its gas fuel. Strictly from an environmental perspective, the new furnace is a major improvement. Despite increased capacity and larger volume, it needs around 13% less gas than the old installation. The process heat from the furnace is first used to preheat billets before they enter the furnace. A good portion of the remaining waste heat is fed into the city of Lucerne’s district heating system. Overall, Steeltec has lowered annual CO2 emissions by almost 10% by introducing innovations at the rolling mill.

Swiss Steel Group has had the decarbonization processes at their Swiss plant verified by TÜV Süd. Likewise all Group plants in the various countries are developing a number of activities to lower CO2 emissions and have them verified by external auditors. The availability of green energy has played a key role in this process.

A further sign of the efforts of Swiss Steel Group to introduce even more sustainability is the switching of production at the Swiss plant entirely to electricity supplied by regional hydropower, which has resulted in a CO2 emission value far below the usual branch average.

Swiss Steel Group is now bundling its strengths and focusing even more on their customers. R&D has become an even greater priority, and investments are being made where greater efficiency and sustainability can be achieved. Both objectives do not contradict each other, but ideally complement each other because sustainability does not tolerate any inefficiency.
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ERG Stops Supplying Raw Materials to MMK

Strategic Research Institute
Published on :
22 Aug, 2022, 6:14 am

Interfax reported that Kazakhstan’s Eurasian Resources Group has completely ceased supplying raw materials to Russian steel maker Magnitogorsk Iron & Steel Works. ERG Chairman Mr Alexander Mashkevich said “It has had a strong effect the current geopolitical situation and it will have an even stronger one. Quite a bit, because we are not supplying nine million tonnes of iron ore concentrate and pellets today. We are not supplying, and we do not know where to supply it," Mashkevich told reporters when answering what ERG's losses have been regarding sanctions imposed against Russia, and overall owing to the situation in Ukraine.”

Mr Mashkevich explained that ERG has been supplying concentrate and pellets to MMK for the past 30 years, now, owing to the 'anti-Russian' sanctions, supplies have been completely stopped.

He said “We have had to alter all the logistics chains for supplying other goods. We have had to go to other ports, and charter other ships. Of course, this costs more.”
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Tehran Stock Exchange Suspends Mobarakeh Steel after Fraud Claims

Strategic Research Institute
Published on :
22 Aug, 2022, 6:17 am

Iran International reported that the Tehran Stock Exchange has suspended Iran’s largest steel maker Mobarakeh Steel Company following a scathing parliament report about an alleged USD 3 billion corruption case. Tehran Stock Exchange CEO Mr Mahmoud Goudarzi said that “Trading of the company’s stocks has been suspended and will not resume until further information on the company's financial affairs become clear.”

The report which was released last week has revealed massive corruption and mismanagement in Mobarakeh Steel Company. According to the parliament's report, the company's revenues amounted to nearly 15% of the country’s budget last year. The over 250-page report says Mobarakeh Steel Company paid astronomical sums of money to various government entities including the Revolutionary Guard, ministry of intelligence, police, state broadcaster IRIB, Friday prayer imam’s offices, religious seminaries, and bribed others such as certain media outlets, individuals, and social media influencers.

Parliament’s investigative report, covering the period 2018-2021, accuses officials of the administration of former President Mr Hassan Rouhani, including vice-president Mr Es’haq Jahangiri, former Vice-President Mr Mohammad Nahavandian, and others for using their influence in appointing top officials of the company including its board members.

The report also claims that during the previous administration, the company granted contracts to family members of government officials and influential politicians.

With an estimated value of nearly IRR 2,940 trillion (USD 10 billion), Mobarakeh Steel is the second largest company in Tehran Stock Exchange. The company which has a share of around 1% in Iran's GDP employes around 350,000 people directly and indirectly and feeds over 2,800 other large and small enterprises across the country. Mobarakeh Steel is nominally private, but it is a quasi-governmental company with most of its shares owned by the Mines and Mineral Industries Development and Renovation Organization, various private and public joint stock companies, and quasi-state banks. The company's management is appointed by the government. Semi-Public, Khosoulati in Persian, is a term coined by fusing the Persian words for private and public, and refers to companies that are sold to the private sector on the surface, but are owned by the government, IRGC entities, or entities under the control of the supreme Leader in reality.

Mobarakeh Steel Company, located 65 km south west of Esfahan near the city of Mobarakeh in Esfahan Province of Iran is the largest steel maker in Middle East & Northern Africa region. It was commissioned after the Iranian Revolution in 1979 and initiated operations during 1993. It underwent major revamping during year 2000, and is scheduled for a second and third revamping in 2009–2010, bringing the total steel output to 7.2 million tonne per year. Mobarakeh Steel Company 's iron ore comes from mines in Golgohar & Chadermaloo in Kerman & Yazd provinces. Mobarakeh Steel Company s products consist of hot and cold rolled sheets and coils, pickled coils, narrow strip coil, tinplate sheet and coil galvanized coil, pre painted coil and slab.
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POSCO & Vale Sign Pact for Green DRI Production

Strategic Research Institute
Published on :
22 Aug, 2022, 6:19 am

South Korean steel giant POSCO and Brazilian iron ore miner Vale have signed a joint research agreement to promote HBI production on 1 August 2022 at Vale headquarters in Rio de Janeiro in Brazil to promote the low-carbon HBI production. POSCO and Vale have decided to conduct joint research in the areas of

1. Selection of potential regions

2. Cost and investment cost analysis by the production process

3. Carbon emission reduction measures in the production process to promote the HBI business.

The two companies plan to complete a basic review for the HBI business, including the optimal location of the plant, scale, production method, and economic feasibility by the end of this year.

POSCO had signed a Memorandum of Understanding for carbon-neutral cooperation with Vale in November last year, and has conducted joint research on how to use low-carbon raw materials in the process. Through this agreement, the joint research field for carbon neutrality expanded to the HBI business
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Steel Structure Specialist Severfield on Track forNet Zero Journey

Strategic Research Institute
Published on :
23 Aug, 2022, 5:57 am

Dalton Thirsk North Yorkshire headquartered leading British steel structure specialist Severfield's Sustainability Manager Ms Sara Halliday has unveiled Severfield’s net zero ambitions and decarbonisation journey so far. She wrote that in achieving the Paris Agreement's goal of net-zero by 2050, there are a number of emerging technologies and decarbonization strategies that signal progress, six of which are prioritized in the BCSA roadmap

1. Design efficiency

2. Circular economy

3. Direct steelmaking emission reductions

4. Decarbonisation of the electricity grid

5. Carbon capture, use and storage (CCUS)

6. Steel transport, fabrication and erection

Each one of the six 'levers' is intended to cover the whole UK structural steelwork sector, providing multiple pathways to decarbonize - many of which are already in motion.

Levers 1 and 2 cover 'demand-side measures', offering the easiest near-term decarbonization benefits through smarter, more efficient designs using less steel (Lever 1) and extending the whole life of steel through reuse and recycling (Lever 2). As designers, fabricators and erectors, lever 1 and 2 are key for Severfield.

Lever 3 is expected to deliver carbon reductions over the next ten years, using emission- reduction technologies such as waste heat recovery, increased scrap steel use, and biomass/biowaste to produce the energy required for steelmaking.

A stable supply of affordable renewable energy is fundamental to Lever 4's contribution to decarbonised steelmaking. The UK's electricity grid is expected to be decarbonised to target levels by 2050, and this will better facilitate the use of scrap in steel production as electricity becomes the primary energy source.

Lever 5 will see most carbon reductions achieved after 2035, and a predicted overall carbon reduction of 25% by 2050. This is due to the suite of new technologies required to capture, store, and recycle CO2 at source, such as power plants and industrial facilities using fossil fuels.

As a steel fabricator and erector, our focus is also on the sixth lever. By 2050, it is expected that Lever 6 will contribute an 8% carbon reduction.

Ms Halliday wrote “We have been measuring and managing our carbon footprint for many years as part of our ambitious sustainibility strategy. In August 2021, we were accredited as carbon neutral by the Carbon Trust, in accordance with PAS 2060, the international standard for carbon neutrality. We will continue to maintain this going forward. Furthermore, we have increased sustainability awareness across the organisation; we are encouraging colleagues to become more engaged by launching our Smarter, Safer, more Sustainable business strategy.

She wrote “These are the greenhouse gas emissions that are produced as a direct result of our operations, such as powering the production facilities, offices, and transporting goods. We've taken significant action to minimize carbon emissions by 60% since 2015, through various initiatives including shifting to more energy-efficient technologies, lean manufacturing techniques, and switching to renewable electricity. Scope 3 is where the most impact can be achieved. It covers all of the associated emissions that a company is indirectly responsible for throughout their supply chain, such as the procurement/processing of raw materials, business travel, transport and distribution, employee commuting, and waste. According to the GHG Protocol, Scope 3 emissions equate to approximately 70% of an organisation's carbon footprint. For Severfield, this can be as high as 98% due to the embodied carbon in the steel we purchase. Embodied carbon is the total amount of CO2 emitted from producing materials; from the energy used to extract and transport raw materials to the emissions from their manufacturing processes. Although scope 3 reporting is not mandatory, if an organisation's scope 3 is more than 40% of emissions, then there exists an economical and ethical responsibility to report it and set targets to reduce it.”

Severfield is a structural steel contractor. By turnover it is the largest in the UK and amongst the biggest in Europe, with a capacity of 165,000 tonnes per year. Landmark works include London's 2012 Olympic Stadium, The Shard, Wimbledon Centre Court roof, Emirates Stadium and Paris Philharmonic Hall. The firm has acquired businesses across structural steel market sectors within the UK and participates with JSW Group in two Mumbai based joint ventures, JSW Severfield Structures Ltd and indirectly, JSW Structural Metal Decking Ltd.
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US Steel Production Capacity Utilization Recovers in Week 33

Strategic Research Institute
Published on :
23 Aug, 2022, 5:59 am

American Iron & Steel Institute announced that in the week ending on 20 August 2022, US’s raw steel production was 1.756 million net tons while the capability utilization rate was 79.7%. Production was 1.872 million net tons in the week ending 20 August 2021 while the capability utilization then was 84.8%. The current week production represents a 6.2% decrease from the same period in the previous year. Production for the week ending 20 August 2022 is up 0.8% from the previous week ending 13 August 2022 when production was 1.742 million net tons and the rate of capability utilization was 79.0%.

Southern: 765 KNT

Great Lakes: 555 KNT

Midwest: 205 KNT

North East: 162 KNT

Western: 69 KNT

Adjusted year-to-date production through 20 August 2022 was 57.968 million net tons, at a capability utilization rate of 80.1%. That is down 3.3% from the 59.960 million net tons during the same period last year, when the capability utilization rate was 80.7%.
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HBIS Ranked 189 in 2022 Fortune 500 List

Strategic Research Institute
Published on :
23 Aug, 2022, 6:00 am

China’s second largest steel maker HBIS Group is ranked 189th with revenues of USD 66.15 billion in2022 Fortune Global 500 list, up 11 from the previous year. This is the 14th consecutive year that HBIS Group has been listed on the Global 500 list. HBIS has achieved a historic breakthrough in operating revenue, reached a new high of 128.658 billion yuan in brand value, continued to improve the competitiveness and influence, and made new strides in transformation and upgrading and high-quality development.

Hebei Iron and Steel Group was established on 30 June 2008 by the merger of Tangshan Iron & Steel Group and Handan Iron & Steel Group of Hebei Province.
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Malaise Grips Ship Recycling

Strategic Research Institute
Published on :
23 Aug, 2022, 6:02 am

World's leading cash buyer of ships for recycling GMS said that “The international ship recycling malaise that has gripped the markets over these recent summer months continues for another week, with minimal-to-no activity and barely any firm interest from Recyclers, whilst fundamentals remain ever so fragile. Steel plate prices have once again started to display their share of volatility in India, in addition to the currency that showed signs of firming towards INR 79.20 against the US Dollar, whilst weakening back towards INR 80 mark before the week ended. The Pakistani and Bangladeshi economies continue to teeter precariously on the edge with currencies and plate prices continuing to display some grasping signs of stability against the US Dollar at their weakest levels ever. Although there seems no danger of a repeat of the Sri Lanka collapse that most pessimistic Recyclers in the sub-continent have fear. Finally, the Turkish market continues to plummet and languish in the doldrums, with falling plate prices and vessel prices that are on their respective precipices of another drop away from oblivion.”

GMS said “Meanwhile, dry bulk charter rates in the larger segments have started to cool off of late, but many are expecting and hoping for a rebound come fourth quarter of the year. As such, there is not too much of an expectation on an increase in the number of recycling candidates just yet. Even in the most beleaguered sector of the shipping industry, VLCCs, has seen charter earnings and rates interest rise once again, and this is further depriving ship-recycling markets of a supply of tonnage.”

GMS concluded “Overall, in the industry, LCs over USD 3 million, rumored to be further reduced to USD 2 Million, are struggling to get approvals from the Central State Bank in Bangladesh, so this is ruling out the import of larger LDT tonnage into the country. It will take some time for the economic crisis and foreign currency woes to settle down there, before activity can return to some form of normality.”

GMS Price Assessment - India/Bangladesh/Pakistan – Week 33

Dry Bulk – USD 550-570 per LDT

Tankers - USD 560-580 per LDT

Containers - USD 570-590 per LDT
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Devaki Group Plans Wind Farm to Power Devki Samburu Plant in Kenya

Strategic Research Institute
Published on :
23 Aug, 2022, 6:04 am

The Capital FM reported that Nairobi Kenya based steel & cement leader Devki Group has unveiled plans to develop a wind power plant in to cut power costs. Devki Group informed National Environment Management Authority that it plans to develop a 60 megawatts plant in Samburu in Kwale County in Kinango Sub County and that the power generated will be used for the firm’s own consumption in its Devki Samburu Plant in Kwale County.

The firm said in a public notice that the grant of the license will not have an adverse effect on any Public or Local Authorities, Companies, persons, or bodies of persons within the areas of the undertaking.

In its Environmental and Social Impact Assessment report, Devki said the characteristics of wind in the area are ideal for power generation. It said ““These site wind conditions favor the site for the production of electricity from wind using a low-wind turbine, a turbine which reaches rated capacity at a low wind speed rather than one with a higher.”

If approved, the plant will be the fourth major wind power plant in Kenya after KenGen’s Ngong wind plant (26.1MW) in Kajiado County, Lake Turkana Wind Power plant (310MW) in Marsabit County and Kipeto Wind (100MW), also in Kajiado.
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USW & Cleveland-Cliffs Open Talks for Hibbing & United Taconite

Strategic Research Institute
Published on :
23 Aug, 2022, 6:07 am

Business North reported that USW leaders from Hibbing Taconite Co near Chisholm and Hibbing and United Taconite in Eveleth and Forbes are in Pittsburgh to begin contract talks with iron ore and steelmaker Cleveland-Cliffs as the existing labor contract between Cleveland-Cliffs and the USW at those two iron ore facilities expires 30 September

Negotiations are already underway covering USW members at Cleveland-Cliffs' Minorca Mine near Virginia and Cliffs' steel plants across the nation. Those contracts expire 1 September. USW said “Talks with Cleveland-Cliffs covering USW workers at Minorca Mine and the company's steel facilities are positive, but work still remains. At the table, negotiations continued this week, and we have resolved many local issues and issues related to contract language. However, we still have significant work to do on profit sharing issues, pension issues and other economic issues.”

Hibbing Taconite Company produces about 7.8 million tons of standard iron-bearing pellets and mines about 29 million tons of ore annually. Hibbing is a joint venture between Cleveland-Cliffs and US Steel, 85.3:14.7. The pellets are shipped to Cleveland-Cliffs’ facility in Burns Harbor, Indiana. Hibbing operations consist of an open-pit truck and shovel mine and a concentrator that utilizes single-stage crushing, autogenous mills, and magnetic separation to produce a magnetite concentrate. The concentrate is then delivered to an on-site pellet plant. From the site, pellets are transported by BNSF rail to a ship loading port at Superior, Wisconsin. It produced 5.5 million long tons of iron ore pellets in 2020.
voda
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CESTAT Orders Refund of Extra Duty Deposit by CSC

Strategic Research Institute
Published on :
23 Aug, 2022, 6:09 am

CESTAT Ahmedabad has ruled that, in appeal China Steel Corporation India’s denial of refund of 1% Extra Duty Deposit paid by them for import of Cold Rolled Full Hard Silicon Electrical Steel from China Steel Corporation Taiwan was not even required to file refund claim and EDD should have been refunded without filing of refund claim and when the refund claim was filed by the appellant cannot be treated as barred by limitation.

CSC’s counsel argued that the 1% EDD paid by CSC is only a security deposit and not a payment of duty and provision of Section 27 will not apply to the refund claim filed by the appellant.
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