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voda 19 april 2018 20:00

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Essar Steel resolution may go beyond 270 days

Business Standard reported that the resolution process for Essar Steel could get extended beyond the 270 day deadline of April 29, a source close to the matter told Business Standard, especially due to the litigation and challenges put up by ArcelorMittal before the National Company Law Tribunal’s Ahmedabad Bench. Last month, the Hyderabad Bench of the NCLT ordered the exclusion of 87 days from the 270 day deadline due to the time consumed because of litigation in the Deccan Chronicle Holdings case.

Essar Steel is one of 12 large stressed asset accounts referred by the Reserve Bank of India (RBI) to the NCLT for resolution of bankruptcy proceedings. The company has an outstanding debt of INR 492.12 billion.

The first round of bidding for the company, admitted under the Corporate Insolvency and Resolution Process of the Insolvency and Bankruptcy Code, was held on February 12, where the resolution professional disqualified Numetal and ArcelorMittal from bidding.

The resolution professional in this case is Satish Kumar Gupta of Alvarez & Marsal, and is being represented by former advocate general of Maharashtra, Darius Khambatta. There was no application from the resolution professional for extension of the existing deadline, said the source quoted above.

Both companies had initially raised objections against their respective disqualifications from the bidding process. Numetal and ArcelorMittal also filed several applications with the Ahemdabad Bench of the NCLT, challenging their disqualifications as well as each other’s eligibility.

Numetal has also filed an application seeking a stay on the second round of bidding till the matters are concluded. ArcelorMittal has alleged that its bids received differential treatment by Essar Steel’s RP when determining eligibility, as compared to when the JSW Steel and AION Capital combine received approval from the Committee of Creditors in the Monnet Ispat and Energy case.

Last week JSW-AION’s bid for Monnet Ispat (INR 114 billion debt) was approved by the CoC by a 98.97 per cent vote. The issue arises as the shareholding pattern of both companies is in contention with Section 29A of the IBC, which specifies persons not eligible to be resolution applicants. The section states that willful defaulters, or persons, managers or promoters of (including persons connected to) a company with a non-performing asset account cannot be eligible to bid for the stressed asset once the insolvency process begins and bids are invited.

ArcelorMittal has alleged that JSW Steel’s bid for Essar Steel should have been disqualified given that Seema Jajodia, sister of JSW group Chairman and Managing Director Sajjan Jindal, was an erstwhile promoter of Monnet Ispat. She had transferred her shares in October 2017. But she continued to be reflected as a promoter in the shareholding pattern uploaded on the stock exchanges for the quarter ended December 2017, while bids for Monnet Ispat bid were submitted on December 12. It was only on January 27 that a rectified shareholding pattern was uploaded on the exchanges.

ArcelorMittals’ bid for Essar Steel was deemed ineligible, given that the company was the promoter of Uttam Galva Steels, another large stressed company that was referred to the NCLT for resolution of insolvency proceedings.

The company said it had sought declassification (February 8) from stock exchanges prior to the first round of bidding for Essar Steel, which took place on February 12, but approvals came only on March 21 and March 23.

Numetal, owned by Russia’s VTB Bank, was deemed ineligible by the resolution professional as the former promoters of Essar Steel, the Ruia family, still owns a minority stake in the company. ArcelorMittal, Vedanta Resources and JSW Steel-Numetal combine participated in the second round of bidding for Essar Steel.

If the Ahmedabad Bench of the NCLT follows the Hyderabad Bench, and instructs the resolution professional to exclude some days from the 270-day deadline, the bids will be considered by the Committee of Creditors thereafter.

Source : Business Standard

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voda 19 april 2018 20:02

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Trump Trade War - EU to offer trade plan in effort to avoid steel and aluminum tariffs 2018

The European Union is drawing up a peace offer it hopes will end trade hostilities with the White House and avoid steel and aluminum tariffs being imposed on the bloc in two weeks’ time, according to European officials. Its centerpiece: A miniature, simplified version of the Transatlantic Trade and Investment Partnership — the controversial EU-US trade agreement that was negotiated but never concluded under the Obama administration.

To complete the offer, the EU is considering joining forces with the US in tackling what both see as China’s unfair trade practices, the officials said. The proposed mini-deal fulfills a central demand of President Donald Trump: lower tariffs on US cars, parts and industrial machinery entering Europe.

In return for lower barriers, which could also apply to some agricultural products and pharmaceuticals, the EU would ask for its companies to be granted access to US government procurement, a longstanding hurdle in the TTIP negotiations.

Source : Market Watch

voda 19 april 2018 20:15

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Vallourec and Interpipe ink partnership

Vallourec, world leader in premium tubular solutions, and Interpipe, Ukrainian manufacturer of steel seamless tubes, announce their intention to start a partnership to produce in cooperation non-OCTG carbon seamless tubes for the European market.

These products, mostly for mechanical, line pipe and process applications , will be produced by Interpipe before being conditioned and controlled in a finishing line to be implemented in one of Interpipe’s mills located in Nikopol city in Ukraine and managed by Vallourec. The start of production is planned for autumn 2018. These tubes will be commercialized by Vallourec in Europe.

With this partnership, Vallourec will be able to complement its offer with highly competitive entry-level pipes and therefore propose a global portfolio of solutions to reinforce its market position in Europe, the Group’s historic base currently positioned on products with higher added value.

Source : Strategic Research Institute

voda 19 april 2018 20:16

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Trump Trade War - KITA urges USTR to treat Korean steelmakers fairly

Korea Times reported that business delegates from the Korea International Trade Association told the United States Trade Representative about Korean steelmakers' anxiety over trade with the US, during their recent visit this week to Washington, DC. According to the trade association, chairman Mr Kim Young-joo met Deputy USTR Jeffrey Gerrish to urge the US government to come up with reasonable quotas on steel imports, so Korean steelmakers and their clients in the US do not suffer losses.

Mr Kim said that "We felt relieved after Korea was exempted from Section 232 regarding tariffs on steel products. However, the U.S. is still negotiating with other countries exempt from the steel tariffs and it has yet to set up a standard for quotas on steel imports.”

During the meeting, the chairman stressed the Korea-US Free Trade Agreement (KORUS FTA) is a reciprocal arrangement in that it has increased trade, investments and employment in both countries.

He said that "The mutual investments between the two countries have doubled, and 437,000 jobs related to Korea have been created in the U.S. after the KORUS FTA. These facts prove the reciprocity."

Mr Kim also said the smooth progression of the negotiation on the KORUS FTA revision eliminated uncertainty, allowing companies in the two countries to set up stable long-term strategies for trade and investment.

However, he demanded a quicker conclusion of the negotiation on the KORUS FTA revision, given Korean businesses have worried about U.S. President Donald Trump's remarks on postponing settlement of the negotiation.

Prior to the meeting with the deputy representative, the business delegates met Center for Strategic and International Studies President John Hamre, Heritage Foundation Vice President Kim Holmes and senior research fellow Bruce Klingner, who is mentioned as a possible candidate for next U.S. ambassador to Korea.

Also, the KITA chairman discussed measures to enhance cooperation between the association and the US think tanks, during a conference hosted by the American Enterprise Institute.

According to KITA, Kim accompanied 40 officials from 26 companies, including POSCO, Mando and Hyundai Motor, on his trip to the US.

Source : Korea Times

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voda 19 april 2018 20:17

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Fortune Steel hints at foul play following explosion at plant

City Press reported that Seven workers were injured and one needed critical assistance after a furnace exploded at the Fortune Steel plant in Nigel, on the East Rand. The National Union of Metalworkers South Africa alleges that during those critical moments, management at Fortune Steel overlooked the safety of their employees and instead tried to squash the severity of the explosion to a minor incident. Speaking to City Press on behalf of Steel Fortune this morning was Gaurav Bansal, a director and shareholder in the mining company, refutes allegations of mistreating its employees, and says that the company has made every effort to ensure that it is complying with labour law procedures in the country.

Mr Bansal said that the reason the employees were rushed off in private vehicles to the hospital was because they needed urgent medical care. Mr Bansal said that “There is no reason for the company to cover up the situation as we are not doing anything against the law over here. The company is fully registered with Rand Mutual Assurance for compensation for any injuries on site due to any accidents that happen. We have been told that the reason for taking the employees in a private vehicle was to not lose any critical time in [the] emergency and to take all necessary steps to give the required care to the injured.”

He said that the company was aware of two employees who were critically injured, and that others with minor injuries received onsite treatment from the paramedics.

Mr Bansal further said that “We do understand [and take note] that his incident was definitely not a minor workplace issue and the necessary investigation is being undertaken to go to the bottom of the [incident] to [assess] the cause of the incident.”

He said that the company’s priority at the moment was to investigate the cause behind the explosion, and that foul play had not been ruled out.

Source : City Press

voda 19 april 2018 20:19

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Amtek Auto to sell SMIAC stake to Nippon Steel and Sumitomo Metal Corporation

Auto ancillary maker, Amtek Auto Limited will sell all equity and preference shares held in its Joint Venture SMI Amtek Crankshafts Private Limited (SMIAC) to Nippon Steel and Sumitomo Metal Corporation. SMIAC will cease to be a JV of AAL post the stake sale. Amtek Auto said in a regulatory filing that "Pursuant to the approval granted by the committee of creditors of Amtek Auto (AAL)....for sale of all equity shares and preference shares held by AAL in SMI Amtek Crankshaft Pvt Ltd (SMI) to Nippon Steel and Sumitomo Metal Corporation (NSSMC): AAL has signed and executed share purchase agreement with NSSMC."

As per AAL’s FY17 annual report, it owns 50% stake in SMIAC and its investment in the entity was worth INR 50.1 crore as on March 31, 2017. SMIAC had a net worth of INR 77 corer and reported a net loss of INR 4.69 in FY17.

Source : Strategic Research Institute

voda 19 april 2018 20:20

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Nippon Steel & Sumitomo Metal Thai subsidiary NS-SUS receives award for TPM Achievement

NS-Siam United Steel Co Ltd, a consolidated subsidiary of Nippon Steel & Sumitomo Metal Corporation (NSSMC) and a manufacturer of cold-rolled steel and hot-dip galvanized and galvannealed steel sheets in Thailand, received the 2017 Advanced Special Award for Total Productive Maintenance (TPM) Achievement. The TPM practice has been advocated by the Japan Institute of Plant Maintenance (JIPM). NS-SUS received the Advanced Special Award, the second-ranked award of five ranks, for the first time. Prior to this, the company received the Award for TPM Excellence, Category A in 2008, the Award for Excellence in Consistent TPM Commitment in 2010, and the Special Award for TPM Achievement in 2012.

Representatives from NS-SUS attended the award ceremony, held in the Kyoto International Conference Center on March 21, 2018, and Mr. Bantoon Juicharean, Vice President of NS-SUS, made a keynote speech and presented the company’s TPM activities.

The Siam United Steel (1995) Co Ltd, a predecessor of NS-SUS, started the TPM activities in 2005. Since then, the company has undertaken its own maintenance work and has improved the level of planned maintenance and has raised the management level of maintenance work, so that there is participation by all employees corporate-wide. Moreover, in 2012, it combined the TPM practice with the Toyota Production System (TPS) to thoroughly reduce losses and improve production efficiency. This has resulted in an 80% decline in the rate of equipment failure and a 6% improvement in yield, compared to 2005.

NS-SUS’ management and employees are further committed to make improvement an every-day activity and to use this as one means of achieving a world top-class enterprise, with the working aim of achieving the Award for World-class TPM Achievement, the highest award.

The Total Productive Maintenance (TPM) program was developed by the Japan Institute of Plant Maintenance (JIPM). It is a corporate-wide maintenance program to be participated by all
employees, from the top management to poduction workers, with the aim of building a
company that pursues maximum efficiency in production system in keeping with the goal of “no
accidents, no defects, and no trouble.”

Source : Strategic Research Institute

voda 19 april 2018 20:23

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Severstal reports Q1 2018 financial results

PAO Severstal one of the world’s leading steel and steel-related mining companies, today announces its Q1 2018 financial results for the period ended 31 March 2018.

CONSOLIDATED FINANCIAL RESULTS FOR THE QUARTER ENDED 31 MARCH 2018

Zie bijlage voor cijfers:

Notes:

1) EBITDA represents profit from operations plus depreciation and amortisation of productive assets (including the Group’s share in depreciation and amortisation of associates and joint ventures) adjusted for gain/(loss) on disposals of PPE and intangible assets and its share in associates’ and joint ventures’ non-operating income/(expenses).

2) Free Cash Flow is determined as the aggregate amount of the following items: Net cash from operating activities, CAPEX, proceeds from disposal of PPE, interest received and dividends received.

3) Net profit after FX fluctuations and other non-cash items.

4) Basic EPS is calculated on the following basis: net profit divided by the weighted average number of shares outstanding during the period: 814.1 million shares for Q1 2018, 814.0 million shares for Q4 2017 and 810.6 million shares for Q1 2017.

FINANCIAL POSITION HIGHLIGHTS:
At the end of Q1 2018, cash and cash equivalents totaled USD 757 million (Q4 2017: $1,031 million) reflecting the net effect of free cash flow generation and Eurobond payout.

Gross debt declined 26.3% to $1,542 million (Q4 2017: $2,093 million) reflecting the $549 mln Eurobond 2018 payment.

Net debt decline of 26.1%, to $785 million, at the end of Q1 2018 (Q4 2017: $1,062 million) reflected the free cash flow generation for the quarter. The Net Debt/EBITDA ratio marginally declined to 0.3x at the end of Q1 2018 (Q4 2017: 0.4x). Severstal’s Net Debt/EBITDA remains one of the lowest amongst steel companies globally and enables Severstal to maintain a low level of debt whilst returning value to its shareholders.
The liquidity position remains strong, with $757 million in cash and cash equivalents and unused committed credit lines of $1,074 million, more than covering the short-term principal debt of $10 million.

Mr Alexander Shevelev, CEO of Severstal Management, commented that “Severstal is constantly focused on maximising value for its shareholders. I am pleased to report that we have also revised our dividend policy in the interest of our shareholders, with a formal commitment to paying 100% of free cash flow in the form of dividends. With an ever increasing focus on our ESG performance, our ESG commitment is fully aligned with the Group’s strategic objective to be a leader in value creation for all of our stakeholders. We believe that by consistently driving innovation across all of our assets we can take Severstal to the next level. Our product, process and business model innovations are already delivering clear performance improvements and our company-wide digitalisation programme will enable us to enhance our operational efficiency even further. Our financial performance in Q1 2018 was supported by a strong export pricing environment and Severstal’s flexible distribution channels, which enabled us to redirect higher volumes to export markets. Reflecting our goal of becoming a leader by Total Shareholder Return, the Board of Directors is recommending a dividend of 38.32 RUB for Q1 2018. In 2018 we continue to forecast global steel growth. Russian steel demand increased 5% in 2017 and is expected to be a further 2.6% higher in 2018, supported by GDP growth and gradual economic recovery. Russia remains Severstal’s core market, and with the flexibility to redistribute shipments quickly between domestic and export markets, we are confident that Severstal will benefit from the recovery in local demand.”

REVIEW OF THE FIRST QUARTER ENDED 31 MARCH 2018
In Q1 2018 the Company maintained a steady performance supported by positive trends within the global steel and commodities markets during the period. This reflected the strength of our operations and the management’s ongoing focus on enhancing efficiency. The share of HVA in the product sales mix remained at a high level of 45%, and the Company sold-off stocks at its export destinations in Q1 2018. To benefit from the improved profitability of export deliveries, the Company increased its share of export shipments to 48%. Severstal’s proximity to both its main export and domestic consumers allows it to shift flexibly between export and domestic sales depending on the market environment.

Group revenue remained almost flat q/q in Q1 2018, as steel products sales volumes growth, strong prices for steel and raw materials were offset by a decline in sales volumes at Resources. In Q1 2018 Severstal’s EBITDA weakened 6.4% q/q to $706 million due to higher raw materials prices and increased distribution expenses to support the higher share of export sales. Free cash flow of $289 million was lower in Q1 2018 due to seasonal uptick in net working capital, which reflected a temporary growth in receivables. The Company’s high quality assets and efficient business model enabled Severstal to maintain one of the highest EBITDA margins of 32.5% and deliver solid cash generation to maximise shareholder returns.

Severstal is committed to returning value to its shareholders whilst managing and maintaining a low debt level. Severstal’s financial position remains strong with its Net debt/EBITDA ratio at 0.3x as at the end of Q1 2018. As a result, the Board of Directors is recommending a dividend of 38.32 roubles per share for Q1 2018.

Bijlage:

voda 19 april 2018 20:25

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Deel 2:

RSD steel product sales increased 3% q/q to 2.87 mln tonnes compared with the previous quarter (Q4 2017: 2.79 mln tonnes). Meanwhile, the Company reduced steel product stock levels at its export subsidiaries in Q1 2018. Semi-finished product sales volumes growth was driven by the change in structure of product mix and increased demand for billets.

The Company increased export sales volumes to 48% (Q4 2017: 42%) to benefit from more profitable export deliveries at the beginning of the year. The share of high value-added (HVA) products within the sales portfolio remained high at 45% (Q4 2017: 47%) declining only 2 ppts due to a seasonal change in product mix.
Severstal increased its sales of the HDG and cold-rolled coil products to the U.S. market and hot-rolled coil to European destinations due to the attractive pricing environment.

Large diameter pipe sales volumes declined 28% q/q, following the H2 2017 destocking of finished goods produced in the beginning of 2017 at Izhora Pipe Mill. In March 2018, Izhora Pipe Mill won a tender to supply around 165kt of LDPs for Gazprom projects during 2018-2019.

Steel and raw materials prices remained high in Q1 2018. The Company increased the export share of its steel sales in Q1 2018 which resulted in flat average selling prices across the product mix and increased distribution expenses. Domestic prices were catching up with global price trends but with a time lag. Growing sales volumes drove a revenue increase of 3.5% q/q to $2,025 million (Q4 2017: $1,956 million). EBITDA improved 0.4% q/q to $535 million (Q4 2017: $533 million). The EBITDA margin declined marginally by 0.8 ppts to 26.4% (Q4 2017: 27.2%).

The total non-integrated cash cost of slab production at the Cherepovets Steel Mill in Q1 2018 increased $14/t q/q to $335/t (Q4 2017: $321/t) as a result of raw material prices growth. The integrated cash cost of slab in Q1 2018 was up at $264/t (Q4 2017: $243/t) as a result of lower EBITDA at the Resources division.

SEVERSTAL RESOURCES
Coking coal concentrate sales volumes from Vorkutaugol declined 25% q/q, as the long-wall repositioning at the Vorgashorskaya mine impacted production of “GZHO” grade concentrate. Meanwhile, the Company managed to achieve stable production of “2ZH” grade coal, fully meeting the production needs of CherMK.

Iron ore pellet sales decreased 28% and totalled 2.38 mln tonnes (Q4 2017: 3.30 mln tonnes) after the realisation of a significant share of finished goods in transit in Q4 2017, shifted from the previous quarter, and an increased share of goods in transit in Q1 2018, which will be realised in subsequent periods.

Iron ore concentrate sales increased 14% q/q to 1.29 mln tonnes (Q4 2017: 1.14 mln tonnes) despite the seasonal slowdown in production at Olcon. The improvement of iron ore concentrate sales in Q1 2018 reflects the consolidation of the Yakovlevskiy mine and stock sell-off at Olcon. Reflecting the q/q decrease in sales volumes, revenue of the Resources division declined 15.2% q/q, to $402 million (Q4 2017: $474 million) due to volumes decrease and EBITDA declined 8.3% to $188 million (Q4 2017: $205 million).

Given the fixed cost nature of the mining business, lower processing volumes at Vorkutaugol due to the long-wall repositioning at Vorgashorskaya mine, brought Q1 2018 total cash costs (TCC) up to 96$/t (Q4 2017: $92/t). At the same time, TCC at Karelsky Okatysh remained almost flat at $29/t (Q4 2017: $27/t). TCC at Olcon were up $3/t at $37/t (Q4 2017: $34/t) affected by Russian currency appreciation q/q.

OUTLOOK
In Q1 2018 steel and raw material demand remained high. Global steel prices were supported by winter restrictions in China and a seasonal increase in Chinese demand in March, which contributed to higher prices of raw materials.

Russian export prices are expected to follow global trends in Q2 2018. We anticipate Russian steel demand to grow further, by 2.6% in 2018.
With a solid portfolio of high-value added products, being low cost and close to export routes, Severstal remains well positioned to adapt quickly to changing conditions and capture attractive pricing both domestically and globally. In this environment the Board is confident that Severstal will continue to be well-placed relative to both local and global peers.

Source : Strategic Research Institute

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voda 19 april 2018 20:26

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AISI update on Raw Steel Production in US in Week 15

In the week ending on April 14, 2018, domestic raw steel production was 1,784,000 net tons while the capability utilization rate was 76.1 percent. Production was 1,721,000 net tons in the week ending April 14, 2017 while the capability utilization then was 73.8 percent. The current week production represents a 3.7 percent increase from the same period in the previous year. Production for the week ending April 14, 2018 is down 1.2 percent from the previous week ending April 7, 2018 when production was 1,805,000 net tons and the rate of capability utilization was 77.0 percent.

Adjusted year-to-date production through April 14, 2018 was 26,181,000 net tons, at a capability utilization rate of 75.5 percent. That is up 1.4 percent from the 25,810,000 net tons during the same period last year, when the capability utilization rate was 74.4 percent.

Broken down by districts, here's production for the week ending April 14, 2018 in thousands of net tons: North East: 213; Great Lakes: 685; Midwest: 159; Southern: 653 and Western: 74 for a total of 1784.

Source : Strategic Research Institute

voda 19 april 2018 20:32

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worldsteel SRO – New Megatrends

worldsteel’s April 2018 Short Range Outlook published in April delivers the good news that the growth momentum of the global steel industry will be sustained. It also highlights a few encouraging developments for the global steel industry.

Firstly, the recovery momentum in the advanced economies is expected to remain robust and, more importantly, is more investment-driven now than in the past. Investments had stayed at weak levels for almost a decade since the 2008 financial crisis.

Secondly, the recovery in the emerging economies also seems to be gaining a stronger foothold on the back of a stronger global economy, especially for those Latin American countries which had been rather slow to benefit from the upturn. Furthermore, reforms that are being implemented in many countries are expected to further strengthen their growth potentials.

However, there are two interesting anomalies in the April 2018 SRO when viewed against the strength of the global economy.

The International Monetary Fund (IMF) and other institutions forecast the strong global economic momentum in 2018 will carry into 2019, but that global steel demand growth in 2019 is expected to decelerate compared to 2018.

Global GDP is expected to show strong growth close to 4%, but steel demand is expected to grow much slower than GDP.

While the explanation for the first observation can be found mostly by looking at the situation in China, the second observation is more disturbing.

We know that steel is a cyclical, investment-driven commodity. For this reason, steel demand tends to fluctuate much more widely than GDP over a business cycle.

Global GDP growth vs steel demand growth

During an economic upturn, steel demand accelerates much faster than GDP, overshooting GDP growth; during an economic downturn, steel demand decelerates much faster than GDP. But from 2016, this kind of relationship is no longer being observed:

GDP growth is accelerating, but steel demand growth fails to overshoot the GDP growth. So, let me ponder upon this.

The most obvious reason for this can be found in China, where growth of steel demand has been much lower than that of GDP since 2014. But when we examine other countries, the same phenomenon is also observed, although to a lesser degree. So, we are led to believe that this is an early manifestation of the megatrend forces that the steel industry is facing. The most important of these, which is expected to have a far-reaching impact over a long period of time, is believed to be the circular economy trend.

Implementation of circular economy principles within our society is just at an early-stage now and its wider application will affect steel demand in many fundamental ways; through recycling, sharing, reuse, and remanufacturing practices. All this will make the link between steel demand and economic activities weaker in the future. We experienced a similar situation in the past: following the oil shocks of the mid 70’s, the rise in energy prices and resulting energy saving efforts led to a lasting decline of steel use per GDP.

However, the steel industry was able to respond to such structural change by being innovative the creation of lighter but stronger steels.

Source : Strategic Research Institute

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voda 19 april 2018 20:39

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Lloyds get permit to mine Surjagarh Iron Ore Mine

Lloyds Metals and Energy Ltd has received permission under Regulation 106(2)(b) of the Metalliferous Mines Regulations, 1961 to extract ore by a system of deep hole drilling & blasting and deployment of heavy earth moving machinery at Surjagarh Iron Ore Mine at Gadchiroli District, Maharashtra from Director of Mines Safety, Nagpur Region No. II.

Source : Strategic Research Institute

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voda 19 april 2018 20:40

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Rio Tinto’s Iron Ore Company of Canada update

IOC pellet production of 2.7 million tonnes (Rio Tinto share 1.6 million tonnes) was seven per cent higher than the first quarter of 2017, with strong pellet demand continuing to be strong and product mix being optimised to meet customer demand. Concentrate production for sale of 1.4 million tonnes (Rio Tinto share 0.8 million tonnes) was 28 per cent lower than the same period in 2017, mainly attributable to increased ore hardness and an unplanned shutdown of the Parallel Ore Delivery System. As a result, total sales in the first quarter of 4.0 million tonnes (Rio Tinto share 2.3 million tonnes), were 11 per cent lower than the corresponding period of 2017.

Collective bargaining negotiations at IOC’s Labrador City operation were suspended on 27 March 2018 without an agreement being reached. The local union workforce voted to strike and operations were suspended from that date. Progress has been made to reach a new labour agreement, and a vote is imminent. The priority remains to reach a mutually beneficial agreement with employees and a safe return to operations.

Source : Strategic Research Institute

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voda 19 april 2018 20:43

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Chinese Futures Firm to Launch Commodity Futures Using Horizon’s Platform

Financial Magnates reported that Holly Futures has chosen the platform provided by Horizon Software, a provider of electronic and algorithmic trading solutions and technology, to launch iron ore and grain futures contracts at Dalian Commodity Exchange. The Jiangsu Province-based futures company is one of the large-scale futures providers in China and is also approved by the China Securities Regulatory Commission. It is the lone company in the Jiangsu Province which received a Class A rating for seven consecutive years.

Mentioning the prospect of the new futures and the partnership with Horizon Software, Holly Futures’ General manager of Options Department, Ma Dongdong, commented that “We have been preparing to enter the iron ore and corn futures market through the Dalian Commodity Exchange and have done a lot of detailed research on different trading solutions. Horizon Software, because it has partnerships with many stock exchanges in China and is widely used throughout the world, gives us confidence that its services can easily adapt to our specific requirements. Horizon’s extensive functionality and its platform’s outstanding stability and security have left a deep impression on us, and all of these are extremely important for market makers to provide high-quality, high-efficiency services.”

Mr Dongdong added that “At the same time, we are looking forward to the Shanghai Futures Exchange. And Zhengzhou Commodity Exchange expands our business in making options in the market. We are very grateful to the Horizon team because it provided us with a lot of professional services during the establishment of our market making business.”

Horizon Software is expanding its business in China at a steady pace. Earlier this year, it announced its partnership with Shenyin Wanguo Futures’ subsidiary company Shenyin Wanguo Fortune Investment Ltd.

Mr Adrien Mastronardi, Horizon’s sales director for North Asia, said that “Over the years we have been providing solutions for China’s futures exchanges for derivative market making and trading, and is now with one of China’s most successful futures exchanges, Holly. We are very pleased to cooperate with futures.”Mr Mastronardi said that “To help these exchanges realize futures market, we have been working closely with them to prepare for them and it is really enjoyable to do business with highly specialized teams. It is our pride to rank among the leading solution providers in China’s first batch of market makers.”

Moreover, due to the massive world adaption of cryptocurrencies, the fintech firm also jumped into the sector by introducing cryptocurrency trading through its own native gateway in January this year, which connects several of the largest crypto exchanges, including Kraken, Bitstamp, Bitfinex, and GDAX?.

Mr Mastronardi added that “Providing cutting-edge technologies to meet customer needs and providing excellent support to help customers get exactly what they need through our system, this is our goal and has never changed; we look forward to helping us this one New customers reach their business goals.”

Source : Financial Magnates

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voda 20 april 2018 15:57

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CLT asks for a review of Numetal, ArcelorMittal bids for Essar Steel

In an unexpected twist, the Ahmedabad bench of National Company Law Tribunal (NCLT) on Thursday asked for a review of the ArcelorMittal and Numetal bids presented in the first round of Essar Steel auction. The tribunal, in its ruling, observed that the CoC and RP had not followed the due process while deciding on the eligibility of Numetal and ArcelorMittal bids. The bench asked the resolution professional (RP) and the Committee of Creditors (CoC) to evaluate the bids, including the resolution plans. The Tribunal also termed the invitation for the second round of bids, as invalid. The NCLT also reprimanded the RP and the CoC on the way they handled the resolution proposal.

It has also extended the deadline for the resolution of Essar Steel's asset under the Insolvency & Bankruptcy Code (IBC) by 30 days to include the period of litigation.

The resolution professional had turned down the two bids, terming them ineligible under the Section 29A of the Insolvency and Bankruptcy Code (IBC). The section bars promoters of defaulting companies from bidding for stressed assets. It also prevents "connected persons" from putting in a bid.

Responding to the order, Numetal said “We welcome the order pronounced by NCLT Ahmedabad by returning the matter back to COC for considering our original bid. We have put forth a very compelling resolution plan both industrially and financially. We hope our proposal will be considered by the Committee of Creditors with a fair and holistic view. We are awaiting the detailed order before we can comment further.”

ArcelorMittal said in a statement soon after the NCLT's order “We have always maintained that we are eligible to bid for Essar Steel and are pleased to see that the NCLT wants our offer to be presented to the committee of creditors. We had made a strong and competitive offer backed up by a detailed industrial plan and now hope for a swift resolution for Essar Steel.”

Source : Strategic Research Institute

voda 20 april 2018 16:00

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Thyssenkrupp India starts new CRGO electrical steel production line in Nashik

thyssenkrupp has now started operation of a new line for the production of grain-oriented electrical steel in Nashik, 160 kilometers northeast of Mumbai. That makes thyssenkrupp India’s first and currently only manufacturer of this special steel grade. Grain-oriented electrical steel is used wherever electrical energy is efficiently converted, transported and used, such as in distribution and power transformers. The steel for the production of grain-oriented electrical steel is sourced from thyssenkrupp’s steelmaking operations in Duisburg.

At the opening, the state-of-the-art production line was put into operation in the presence of Dr. Aruna Sharma (Secretary Steel, Ministry of Steel Government of India) and Dr. Peter Kern (representative at the German Consulate General in Mumbai). Central features of the new 35,000 ton-per-year line are the magnesium oxide coating line and the laser system for high-quality surface treatment. Numerous orders have already been received, two thirds of them from customers in India. The Nashik site employs 500 people.

Dr. Jens Overrath, CEO of thyssenkrupp Electrical Steel, said “The local production of grain-oriented electrical steel is a milestone for the Indian steel market. With our decades of expertise in the production of this efficient steel for power transmission, we are helping meet the strong demand for a nationwide and environmentally friendly power supply in India.”

Source : Strategic Research Institute

Bijlage:

voda 20 april 2018 16:01

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Trump Trade War - US rejects India’s request for talks

Business Line reported that US has said the higher duties imposed by the country on Indian steel and aluminium are not safeguard measures and therefore it could not agree to consultations requested by India at the World Trade Organisation for compensation under the Agreement on Safeguards. In its submission to the WTO on Thursday, the US, however, added that it was open to discuss this or any other issue with India provided it is not under the Agreement on Safeguards

The submission stated “The US notes that the premise for India's request for consultations under Article 12.3 of the Agreement on Safeguards is that the steel and aluminium proclamations are safeguard measures…..The President issued the Steel and Aluminium Proclamations under the Trade Expansion Act of 1962, under which he determined that tariffs are necessary to adjust imports of steel and aluminium articles that threaten to impair the national security of the United States. These actions are not safeguard measures, and therefore, there is no basis to conduct consultations under the Agreement on Safeguards with respect to these measures.”

The US, added, that while India’s requests for consultations under the Safeguards Agreement did not have any basis, it was open to discuss its concerns on the issue of aluminium and steel outside the ambit of the agreement.

India had dragged the US to the WTO earlier this week demanding that it give adequate compensation to it under the Safeguards Agreement for the 10 per cent increase in tariffs for aluminium and 25 per cent for steel imposed selectively on the country last month. New Delhi, which has been pointing out to the US that it does not deserve to be in the list of targeted countries, which also includes Japan and China, will now get another chance to state its case. The country’s primary argument is that it cannot be a security threat to the US as it has been the country’s security partner for long and has also taken steps to reduce the trade imbalance existing between the two countries.

Source : Business Line

voda 20 april 2018 16:02

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British Steel consortium to acquire KVV Liepajas Metalurgs in Latvia - Report

The Baltic Times reported that British Steel consortium has repeatedly voiced a wish to purchase Latvia’s insolvent KVV Liepajas Metalurgs steelworks as a whole, according to a letter written by British Steel at the disposal of LETA. A consortium that includes British companies British Steel and Greybull Capital and Estonian company Baltic Metal Holding in a letter dated with April 17 to KVV Liepajas Metalurgs insolvency administrator Vita Dika, Janis Ribens, a board member of Privatization Agency’s subsidiary FeLM, and Citadele Bank confirmed its interest to purchase all assets of the insolvent company.

According to information at the disposal of LETA, the British Steel consortium already voiced a similar wish to purchase the company already in February by sending a letter to the responsible officials. In February British Steel noted that the outdated rolling mill should be replaced and voiced readiness to invest EUR 60-75 million in replacement of the equipment.

The company also voiced readiness to sign a protocol of intent with the current owners of KVV Liepajas Metalurgs on acquisition of assets.

British Steel called on KVV Liepajas Metalurgs insolvency administrator to cancel all previous and future auctions in order to preserve all assets as a whole.

As soon as all involved parties have signed the protocol of intent, British Steel is ready to pay a deposit that would prove its resolution.

KVV Liepajas Metalurgs insolvency administrator Dika refused to answer LETA questions about the letter sent by British Steel.

London based investment company Greybull Capital was founded in 2008 and deals with long-term investments in private companies, and its investment portfolio includes energy, technologies, retail, and manufacturing companies.

As reported, the assets of Latvia's insolvent steel company KVV Liepajas Metalurgs are being auctioned off because none of the company's potential investors had met the requirements set by the secured creditors or provided the required guarantees that would prove their ability to acquire KVV Liepajas Metalurgs in one piece and relaunch its operations.

Austrian company Smart Stahl GmbH bought the rolling mill of the insolvent Latvian steel company KVV Liepajas Metalurgs at the auction on March 20. Smart Stahl GmbH had won the auction by offering EUR 1.57 million (VAT excluded) or EUR 1.9 million (VAT included).

An attempt to sell insolvent KVV Liepajas Metalurgs company’s electric steel casting plant along with its equipment failed on March 28 as the auction drew no bidders.

At the end of March two company’s real estate properties were sold in an auction. Some other real estate auctions should conclude on April 20.

Liepajas Metalurgs metallurgical plant based in the Liepaja port city in south-western Latvia was first declared insolvent after it failed to repay a state-guaranteed loan to an Italian bank. The government sold the plant to Ukrainian investors, KVV Group, in late 2014.

Liepajas Metalurgs was renamed KVV Liepajas Metalurgs and officially re-opened on March 6, 2015, but soon started having problems again and was once more declared insolvent in September 2016.

Source : The Baltic Times

voda 20 april 2018 16:06

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Russia demands compensation at WTO for US steel tariffs

Reuters reported that Russia is demanding compensation from the United States for its decision to impose worldwide tariffs on steel and aluminum, a Russian statement published by the World Trade Organization showed on April 19. The United States maintains that the tariffs are based on national security concerns and fall outside the remit of the WTO rules, but Russia, China, India and the European Union have all objected, saying the tariffs appear to be “safeguards”, which require compensation for major exporting countries.

The United States has agreed to negotiate with China and has told India and the EU that it is open to “discuss this or any other issue”, while insisting that their claims for compensation are unjustified.

Source : Reuters

voda 20 april 2018 16:07

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Thyssenkrupp expects finalisation of Tata Steel JV by December 2018

Business Standard reported that Germany based Thyssenkrupp is expecting finalisation of its joint venture with Tata Steel by end of 2018. Mr Jens Overrath, chief executive officer of Thyssenkrupp Electrical Steel (Europe) told reporters on the sidelines of an event held at its Nashik plant said that "Talks with the UK labour unions are on and it's an ongoing process but we expect closure of the JV (deal) by end of this calendar year."

Mr Overrath was here to announce its cold rolled grain oriented (CRGO) electrical steel product line.

Last year, Thyssenkrupp had announced plans to combine its European steel unit with that of Tata Steel to create Europe’s second largest steel player. The proposed merger is aimed at tackling surplus capacity in the steel sector.

Thyssenkrupp has a sizeable presence in India with electrical steel plant making 35,000 tonnes of CRGO, which would be expanded to 50,000 tonnes in coming years.

Through the CRGO product line at Nashik, Overrath aims to cater to not just the India market but also the neighbouring countries like Thailand, Sri Lanka and Indonesia.

Mr Overrath said that "Asia is a big market for us and about 15 percent of our total Europe production comes to this region. Of this, India is the biggest grain oriented steel market in Asia. Due to this, setting up a plant here for this product line makes a lot of sense."

Thyssenkrupp steel division is one of the world's leading manufacturers of non-oriented high tech electrical steel.

Source : Business Standard

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