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Imported iron ore stockpiles continue to rise at China ports

Xinhua reported that stockpiles of iron ore at 25 major ports in China continued to grow last week, marking the third consecutive week of growth as of Tuesday.

Inventories of imported iron ore stood at 76.53 million tonnes at the end of the October 22 to 28 period up 1.24 million tonnes or 1.64% from the previous week.

The price index for iron ore imports with a 62% purity grade dropped two points to 133. The index for iron ore imports with 58% purity also shed two points down to 121.

The report said the sluggish trading volume of iron ore was due to the weak demand of steelmakers. The supply and demand sides are still at a stalemate.

The report forecast that the import prices of iron ore will fluctuate within a tight range in the near term and large scale purchase orders will be unlikely in the short term.

Source - Xinhua
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China steel group sees output above 800 million tonnes in 2014

According to Mr Li Xinchuang vice secretary general at the China Iron and Steel Association, China’s steel output will exceed 800 million metric tons next year as fixed-asset investment and economic growth remains steady.

Mr Li also head of the Metallurgical Industry Planning & Research Institute in an interview from Beijing said that crude steel production will rise from an estimated 780 million tons this year.

Mr Li said that “Steel output is likely to rise as long as China’s fixed asset investment can meet 17% growth and the gross domestic product can expand 7.4% next year.”

The world’s second largest economy will probably grow 7.6% this year and 7.4 next year as the nation tackles local-government debt and financial reforms, according to the median of 52 economists’ forecasts survey by Bloomberg this month.

Source - Bloomberg

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US weekly raw steel production update

In the week ending October 26, 2013, domestic raw steel production was 1,817,000 net tons while the capability utilization rate was 75.8%. Production was 1,692,000 net tons in the week ending October 26, 2012, while the capability utilization then was 68.0%. The current week production represents a 7.4% increase from the same period in the previous year.

Production for the week ending October 26, 2013 is down 1.0% from the previous week ending October 19, 2013 when production was 1,835,000 net tons and the rate of capability utilization was 76.6%.

Adjusted year to date production through October 26, 2013 was 79,525,000 net tons, at a capability utilization rate of 77.2%. That is a 2.3% decrease from the 81,429,000 net tons during the same period last year, when the capability utilization rate was 76.1%.

Broken down by districts, here's production for the week ending October 26, 2013 in thousands of net tons
North East - 193
Great Lakes - 623
Midwest - 246
Southern - 665
Western - 90

Source - Steel.org

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Iron ore production breaks record - Rio Tinto

Mining giant Rio Tinto issued impressive Q3 production results that revealed record production and shipments of Western Australia iron ore thanks to the opening of its Pilbara 290 port and rail expansion (ahead of schedule and significantly under budget).

We think this good news has only been sweetened by the recent recovery in iron ore prices following a near term bottom in early June. It's important to note, however, that iron ore prices remain in a defined downtrend and while we view the recent pricing performance as positive, we're not celebrating just yet.

Still, fundamentals are starting to brighten up just a bit for the mining group. Economic performance in China is starting to improve and the country's iron ore imports set a record in September at 74.6 million tons, up 8% from August and 15% on a YoY basis. Steel production in China has come in better than expected during the past couple months and while we will enter into a seasonally weaker period in the next few months, the recent performance has certainly been a pleasant surprise.

Iron ore prices will continue to be volatile and the road ahead will be bumpy but we think Rio Tinto has valuation upside beyond AUD 60 per share on a base case scenario. The firm also represents our only exposure to the basic materials sector in the portfolio of our Best Ideas Newsletter. We're not making any changes to the weighting of our position at this time.

Source - Seekingalpha.com
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Chinese steel industry sees a brighter third quarter

China.org reported that fifteen of the 20 listed steel companies that issued third quarter reports made profits, as opposed to last year, when up to 90% of the steel mills posted a loss.

Baoshan Iron and Steel Co Ltd the nation's largest listed steelmaker, said its net profit for the first three quarters tumbled by 56.99% year on year to CNY 4.64 billion (USD 761.6 million), but excluding the proceeds from selling stainless steel and special steel assets during the same period last year, the Shanghai-listed steelmaker said its profit was actually CNY 2.28 billion more than a year earlier.

Baosteel said in its Tuesday evening announcement that "There was no obvious change in the Q3 steel demand/supply relationship, while raw material prices and selling prices rebounded moderately.”

Analysts said that large and medium-sized domestic steel companies started to reverse the continuous loss-making situation, but the whole industry was running with petty profits.

The Shanghai-based steel bellwether expects uncertainties to linger in the fourth quarter, and the company plans to streamline production, boost cost-efficiency and strengthen marketing to ensure a stable performance, according to an annoucement made by Baosteel on Tuesday evening.

According to a report from China Merchants Securities Co Ltd, Baosteel is undergoing a major transformation, going from being a pure steel producer to becoming an all round steel service provider.

Like Baosteel, Wuhan Iron and Steel Co Ltd also posted a profit. It made CNY 651 million in the January to September period, up 98.44% over what it made in all of 2012.

Another steelmaker, Jiangsu Shagang Co Ltd, turned a profit of CNY 14.9 million rocketing 251.6% YoY.

Even ST-capped Angang Steel Co Ltd made a CNY 765 million profit in the first three quarters, hiking 124% YoY.

Analysts anticipated the third-quarter profits. In July, the leading domestic steel mills generated CNY 2.3 billion in combined profit, their earnings jumping to 3.1 billion in August.

The improvement was associated with boosts from infrastructure construction, and the automotive and real estate markets, said Yang Hua, analyst with mysteel.com, a steel market information provider.

Source - www.china.org.cn
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China revives steel fastener trade dispute with EU

China on Wednesday has relaunched a long running dispute with the European Union over steel bolts and screws, complaining that Brussels has not brought anti-dumping measures on the product into line with a trade panel ruling.

A Chinese request through the World Trade Organisation for consultations with the EU on the issue came two years after a WTO panel found flaws on the way in which Brussels had calculated its anti-dumping tariffs.

In October 2012, the EU said it had reduced the duties, originally imposed in 2009, to take account of the panel ruling. But China now argues that the Brussels measures did not conform to those findings.

The duties originally ranged from 26.5% to 85%. Last October the EU said these had been reduced to a range of between 22.9% and 74.1%.

WTO member countries can impose anti-dumping duties on goods they deem to have been exported at prices lower than those at which they are sold on their home markets, but the calculation of these duties must follow WTO rules.

The so called steel fastenings components widely used for cars, white goods and machinery in the 27 nation EU affected by the tariffs were worth some EUR 575 million (then USD 742 million) in 2007.

Some 200 Chinese companies were affected, but the three-member WTO panel found that the EU had been wrong to apply its measures countrywide and not just to specific Chinese producers of the fasteners.

Following the Chinese complaint, the EU has 15 days to agree to talks.

Source – Reuters
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Moody changes US steel industry outlook to stable

Moody's Investors Service has changed its outlook for the US steel industry to stable from negative as the downward trend has bottomed. But the rating agency says recovery will be slow.

The outlook reflects Moody's expectations for the fundamental business conditions in the industry over the next 12 to 18 months.

Moody's vice-president and senior credit officer Carol Cowan said that "Positive momentum in the first half of 2013 in various sectors that buy steel particularly automotive, but also manufacturing and other end markets has contributed to a bottoming in the US steel industry's steady deterioration. Still, the US steel industry has yet to achieve a more sustained and robust recovery."

Source – Stock MarketWire
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China issues iron ore import licenses for 113 million tonnes in Sept

On October 31, the China Iron and Steel Association announced that in September this year China's Ministry of Commerce issued iron ore import licenses for a total of 113.20 million tonnes valued at USD 14.228 billion. Meanwhile, in the first nine months of this year, iron ore import licenses were issued for a total of 831.767 million tonnes valued at USD 104.155 billion.

In September alone, the iron ore import licenses issued by China for Australian and Brazilian iron ore amounted to 56.2466 million tonnes and 23.2789 million tonnes respectively up 14.39% and 19.71% both MoM. Licenses issued for Indonesian iron ore in the given month amounted to 2.9501 million tonnes up 13.22% MoM.

Source - Visit www.steelorbis.com for more
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Brazil infrastructure push to boost steel demand -Gerdau CEO

Mr André Gerdau-Johannpeter chief executive officer of Gerdau SA said that demand for steel products in Brazil will rise next year thanks to a series of infrastructure projects, including the sale of rights to operate airports, roads and railways.

The company is optimistic about the outlook for the steel industry in North America for next year, Gerdau-Johannpeter told reporters at a conference call to discuss third-quarter earnings.

Gerdau, the largest steelmaker in the Americas, beat third quarter profit estimates after rising sales volumes and cost controls in Brazil offset the impact of declining margins in North America, Europe and India.

Source – Reuters
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China iron ore jumps 3pct in brisk volume after China data

Reuters reported that steel and iron ore futures in China began November higher with iron ore climbing as much as 3.4% as strong data from the top consumer brightened the outlook for demand.

China's Purchasing Managers' Index rose to 51.4 in October from 51.1 in September, topping market expectations and marking the highest since April 2012, according to the country's National Bureau of Statistics. A separate reading by HSBC put the PMI at 50.9, a seven-month high and matching an initial estimate.

The data may revive optimism that growth in the world's No. 2 economy remains on track heading into the Q4 despite weaker factory and trade data earlier, boding well for demand for steel and its raw material iron ore.

The most traded rebar contract for May delivery on the Shanghai Futures Exchange touched a session high of CNY 3,681 per tonne its loftiest since October 16. It closed up almost 1% at CNY 3,671.

Rebar, used in construction, gained 1.7% for the week, its biggest such climb since mid August. The PMI number shows that there may be some acceleration in the overall economy. There should be some demand support for steel."

Ms Helen Lau senior mining analyst at UOB Kay Hian Securities in Hong Kong, who sees rebar potentially gaining by CNY 150 over the next two months. Rebar prices fell for a second straight month in October as consumption during a typically brisk construction season turned out to be lean.

At the Dalian Commodity Exchange, the most active May iron ore contract rose as much as 3.4 percent to CNY 954 per tonne before closing at CNY 942 up 2.1%t. It gained 1.6% on the week.

Volume for the most traded contract reached 321,242 lots, exceeding the 300,818 lots that changed hands when Dalian launched the futures on October 18. Friday's volume is equivalent to just above 16 million tonnes.

Source – Reuters
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Schnitzer reports Q4 net loss

Schnitzer Steel Industries, Inc reported an adjusted loss per share of USD (0.51) for the fourth quarter ended August 31st 2013, excluding a non cash goodwill impairment charge, other asset impairment charges, restructuring charges and tax valuation allowances.

The Company reported a loss per share of USD (10.82) for the fourth quarter ended August 31st 2013. This compares with an adjusted earnings per share of USD 0.11, excluding restructuring charges, and a reported loss per share of USD (0.02) for the fourth quarter of fiscal 2012. Notwithstanding the significant impact to earnings as a result of the impairments and other charges, the Company generated positive operating cash flows of USD 38 million in the fourth quarter.

Challenging market conditions for recycled ferrous metals resulted in lower export selling prices and reduced sales volumes as compared to both the third quarter of fiscal 2013 and the fourth quarter of fiscal 2012. In addition, purchase prices for raw materials did not decrease as much as selling prices during the quarter due to constrained supply which contributed to operating margin compression in both our Metals Recycling and Auto Parts Businesses.

Mr Tamara Lundgren president and CEO commented on the Company's results, "While each of our businesses is well positioned to achieve higher profitability when market conditions improve, this quarter was negatively impacted by a number of significant items and an adverse impact from average inventory costs. Notwithstanding the significant impact to reported earnings, we generated USD 38 million of operating cash flow in the fourth quarter and continued to invest in our business and to return capital to our shareholders through our quarterly dividend."

Source – Strategic Research Institute
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'Resultaten Aperam verbeteren'

Gepubliceerd op 4 nov 2013 om 13:11 | Views: 1.613

Aperam 16:08

EUR 12,67+0,34(+2,76%)

AMSTERDAM (AFN) - Aperam heeft naar verwachting in het derde kwartaal een beter resultaat geboekt op een hogere omzet dan een jaar eerder. Dat zal volgens analisten blijken uit de cijfers die de roestvrijstaalproducent woensdag nabeurs publiceert.

De analisten voorzien gemiddeld een omzet van 1,22 miljard dollar, tegen 1,21 miljard dollar in het derde kwartaal van 2012. De ebitda verbeterde naar verwachting met bijna 20 miljoen dollar tot 61,4 miljoen dollar.

In het tweede kwartaal boekte Aperam een ebitda van 81 miljoen dollar, tegen 66 miljoen dollar een jaar eerder. De omzet steeg in dat kwartaal licht, tot 1,37 miljard dollar.
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Bluescope Opens China greenest industrial facility

Bluescope Steel’s new production plant, situated in the Shaanxi province capital of Xi’an, is the first industrial building in China to obtain a three-star green rating, which is the highest currently awarded within the country.

The USD 64 million project is also one of the largest steel plants situated in inland China, capable of manufacturing 120,000 tonnes of pre engineered steel building frames per annum.

The plant itself is situated in the Xi’an High-Tech Industries Development Zone an area set aside by local government to foster the growth of specific industries which covers an area of nearly 13 hectares, encompassing 50,000 square metres of floor space.

The three-star rating was awarded based on the facility’s performance with respect to energy, water and material usage, as well as economic employment of land resources.

The plant was built using high performance environmentally friendly products which Bluescope also plans to manufacture at the site itself in future, while all of its technologies and intellectual property are Australian owned.

Source - sourceable.net

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ILVA allegedly polluted ground water and sea for 18 years

ANSA reported that prosecutors investigating the troubled ILVA steel plant in the Southern Italian city of Taranto, which has been at the centre of a long standing judicial issue, contend the owners have been carrying out illicit waste-management practices since taking over the company from the State in 1995.

For the past 18 years, ILVA has allegedly disposed of dangerous and non dangerous waste in the ground and the local water system, as well as the sea, according to those carrying out the probe.

The accusations are amongst the heaviest that are included in the preliminary investigation documentation that is being notified to some 50 people and three companies that are being evaluated for their involvement.

The company based in the Puglia port city has been at the centre of a long-running judicial and political tug-of-war as courts have moved to force the company to make expensive environmental upgrades to the plant, accused of polluting the area and creating health problems for more than a decade.

Source - ANSA
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US Senators for continuation of duty on steel from India and China

PTI reported that a bipartisan group of 19 senators has asked the Obama Administration for continuation of anti dumping duty against hot rolled steel imported from India, China and four other countries.

Senator Jeff Sessions co chair of the Senate Steel caucus said that "Unfair trade practices from foreign competitors are in fact harming workers in our state and all across the country. It is in both our national and economic interest to defend the legitimate interests of American workers on the world stage.”

Sessions said in a statement after the 19 Senators wrote a letter in this regard to Chairman Irving Williamson of the US International Trade Commission that "Agreements with our trading partners should apply to all equally. Our workers and businesses should be able to compete on a level playing field. It's time our government did more to fight back.”

Senator Sherrod Brown said that "As our trade deficit continues to widen, it becomes more urgent to level the playing field for Ohio based steel producers like ArcelorMittal and AK Steel.”

He said that "Our workers can compete with anyone in the world when on a level playing field. That is why my Senate colleagues and I urge the ITC not to remove existing trade laws which impose import duties to counteract illegal trade practices from foreign competitors like China, India, Indonesia, Thailand, Taiwan and Ukraine.”

It said that "We are writing to encourage you to maintain the existing antidumping and countervailing duty orders against unfairly traded imports of hot-rolled steel from China, India, Indonesia, Thailand, Taiwan, and Ukraine. "These trade orders are necessary to prevent further injury to an already vulnerable domestic steel industry.”

Source - PTI

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Steel recycling rate at 88% for 2012

According to a recent report released by the Steel Recycling Institute, the overall recycling rate for steel was 88% in 2012 with nearly 84 million tons of steel recycled. That number is down from 2011’s overall recycling rate of 92% according to a chart provided by the organization.

Steel cans were recycled at a rate of 72%, the highest among packaging materials. Automotive scrap was recycled at a rate of 93% for the year which is down from 95 percent in 2011. More than 1 billion tons of steel have been recycled in North America since 1988, the year SRI was forme.

SRI calculates the rates based on data from the American Iron and Steel Institute’s annual statistical reports, U.S. Geological Survey, the Environmental Protection Agency’s Characterization of Municipal Solid Waste, the National Automobile Dealers Association, the Association of Home Appliance Manufacturers and the Institute of Scrap Recycling Industries.

Source - www.americanrecycler.com
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Arcelormittal koersdoel omhoog naar EUR18,00 van EUR17,00 - CS
Arcelormittal advies gehandhaafd op outperform - CS

(MORE TO FOLLOW) Dow Jones Newswires
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ArcelorMittal koersdoel omhoog naar $18 van $17 - Credit Suisse
ArcelorMittal advies blijft outperform - Credit Suisse

(MORE TO FOLLOW) Dow Jones Newswires
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ArcelorMittal koersdoel omhoog naar EUR12 van EUR10,50 - Nomura
ArcelorMittal advies blijft buy - Nomura

(END) Dow Jones Newswires

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