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voda 14 april 2022 07:18

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Australia’s Greens Unveil Pilbara Green Steel Hub Funding Plan

Strategic Research Institute
Published on :
14 Apr, 2022, 6:31 am

Western Australia’s Pilbara region would receive one fifth of AUD 500 million funds to help establish a green steel industry under a policy the Greens will pursue if the party holds the balance of power following the federal election. Leader of the Australian Greens & Federal MP for Melbourne Mr Adam Paul Bandt said the fund would reduce the nation’s dependence on coal and allow his party to shelve the 114 Australian coal and gas projects in the investment pipeline and send workers into less polluting resources jobs. He said “We have greater potential than just being the world’s quarry. With almost endless energy available from the sun and wind, we have the capacity to create finished steel, unlocking generations of good jobs and giving us a new export opportunity. The Pilbara knows iron ore, and we need to make the most of the expertise in this region to build a steel industry powered by sun and wind and fuelled by renewable hydrogen.”

The Green Steel Innovation Fund would run for five years with the aim of kick-starting an industry using zero emission hydrogen produced with renewable energy sources to manufacture steel in Australia rather than export iron ore where the product is made using coal.

Alongside the green steel funding the Greens will finance a green metals bank under a similar model to the Clean Energy Finance Corporation to give the private sector access to capital for green steel projects through government loans.

voda 14 april 2022 07:19

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Maritime Industry Joins Miners for Iron Ore Green Corridor

Strategic Research Institute
Published on :
14 Apr, 2022, 6:30 am

A consortium, led by the Global Maritime Forum and consisting of BHP, Rio Tinto, Oldendorff Carriers and Star Bulk Carriers Corp, have signed a letter of intent to assess the development of an iron ore Green Corridor between Australia and East Asia. To mobilize demand for green shipping and to scale zero- or near-zero greenhouse gas emission shipping, governments and industry decision-makers are increasingly looking to enable and simplify the task of decarbonizing the maritime sector by establishing Green Corridors: specific shipping routes where the economics, infrastructure, and logistics of zero- or near-zero emission shipping are more feasible and rapid deployment can be supported by targeted policy and industry action.

Last year, the Getting to Zero Coalition report The Next Wave demonstrated how Green Corridors can be conceived, prioritized, and designed with a pre-feasibility study for an iron ore route between Australia and East Asia. The study suggested that green ammonia is the likely fuel choice for this corridor based on favorable production conditions, an enabling regulatory environment and willing stakeholders.

Taking the study further, the parties in the consortium intend to jointly assess green ammonia supply, bunkering and first mover support mechanisms, necessary for their participation in a viable Australia to East Asia iron ore Green Corridor.

Through the work in the consortium and with inputs from the wider supply chain, the partners aim to develop a framework as a preparatory step towards real-world implementation of a green iron ore shipping value chain.

The Green Corridor collaboration’s outputs are intended to lay some of the groundwork for real world implementation of the Green Corridor.

The new consortium will facilitate a robust public-private dialogue to investigate conditions that need to be in place to mobilize demand and to feasibly scale zero or near-zero-GHG emission shipping on the corridor.

Global Maritime Forum is an international not-for-profit organization dedicated to shaping the future of global seaborne trade to increase sustainable long-term economic development and human wellbeing.

voda 14 april 2022 08:14

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ArcelorMittal koopt meerderheidsbelang in Amerikaanse vestiging Voestalpine
Transactie waardeert ingelijfde bedrijf op 1 miljard dollar.

(ABM FN-Dow Jones) ArcelorMittal heeft een belang van 80 procent genomen in een Amerikaanse vestiging van Voestalpine. Dit maakte het staalbedrijf met een notering op het Amsterdamse Damrak donderdag bekend.

Het gaat om Hot Briquetted Iron, gevestigd in het Texaanse Corpus Christi. Met deze transactie worden de activiteiten in Corpus Christi gewaardeerd op 1 miljard dollar.

Voestalpine behoudt het resterende belang van 20 procent.

Hot Briquetted Iron is sinds oktober 2016 in bedrijf en is goed voor een productiecapaciteit van 2 miljoen ton, waarmee het volgens het persbericht één van de grotere mondiale spelers op het gebied van compact sponsijzer is.

Aansluitend werd daarnaast voor een langere termijn een leveringscontract met Voestalpine overeengekomen, waarmee het garant komt te staan voor de levering een jaarvolume voor de staalbedrijven van Voestalpine in Linz en Donawitz in Oostenrijk.

Door: ABM Financial News.

info@abmfn.nl

Redactie: +31(0)20 26 28 999

voda 14 april 2022 10:10

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Deutsche Bank verhoogt koersdoel ArcelorMittal

Door ABM Financial News op donderdag 14 april 2022
Views: 2.825

(ABM FN-Dow Jones) Deutsche Bank heeft donderdag het koersdoel voor ArcelorMittal verhoogd van 46,00 naar 48,00 euro bij handhaving van het koopadvies.

Analist Bastian Synagowitz verwacht dat ArcelorMittal in het afgelopen kwartaal de EBITDA op kwartaalbasis zag dalen van 5,1 tot 4,7 miljard dollar, vanwege margedruk in de meeste divisies. Sterkere marges in Europa en een stevige rugwind bij de mijnbouwactiviteiten zullen de margedaling deels kunnen opvangen, bent hij.

Synagowitz gaat tevens uit van hogere prijzen en hoewel de blootstelling aan Oekraïne significant werd teruggeschroefd, verhoogde de analist zijn EBITDA-taxaties voor dit jaar met 17 procent. Zodoende kwam hij uit op een hoger koersdoel. De analist houdt wel rekening met de nodige onzekerheid op macro-economisch niveau in de tweede helft van dit jaar.

Deutsche Bank verwacht dat het rendement op de vrije kasstroom sterk blijft, waardoor ook de aandeelhoudersbeloningen op een hoog niveau blijven. Desondanks sluit de analist niet uit dat ArcelorMittal in het tweede kwartaal het tempo van het inkopen van eigen aandelen wat terugschroeft.

Bron: ABM Financial News

staalfreak2 14 april 2022 13:14

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quote:
voda schreef op 14 april 2022 10:10:
Deutsche Bank verhoogt koersdoel ArcelorMittal

Door ABM Financial News op donderdag 14 april 2022
Views: 2.825

(ABM FN-Dow Jones) Deutsche Bank heeft donderdag het koersdoel voor ArcelorMittal verhoogd van 46,00 naar 48,00 euro bij handhaving van het koopadvies.

Analist Bastian Synagowitz verwacht dat ArcelorMittal in het afgelopen kwartaal de EBITDA op kwartaalbasis zag dalen van 5,1 tot 4,7 miljard dollar, vanwege margedruk in de meeste divisies. Sterkere marges in Europa en een stevige rugwind bij de mijnbouwactiviteiten zullen de margedaling deels kunnen opvangen, bent hij.

Met een EBITDA van $ 4,7 miljard in Q1-2022 komt Arcelor Mittal op een EBITDA-resultaat voortschrijdend jaar van $ 20,862 miljard, dat is ruim $ 1,4 miljard hoger dan de EBITDA over FY2021.

voda 15 april 2022 09:36

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British Steel Processor Servosteel Announces New Ownership

Strategic Research Institute
Published on :
15 Apr, 2022, 5:57 am

UK’s steel processor & distributor Servosteel has announced new ownership following a successful management buyout, led by its existing senior leadership team. The MBO sees the team made up of Mr Steven Dickens, Mr Darryl Macready, Ms Sarah Ostins and Mr Richard Burton take full control of the business, with its former owners Mr Mark Anderson and Mr Phillip Guest stepping aside following a successful 8-year tenure that saw the business return to independent ownership. With extensive industry knowledge the new ownership team are well placed to take the business forward; ensuring a smooth transition, continuity and a business as usual approach.

Mr Steven Dickens, Commercial Director, has over 20 years of experience within the steel industry and has operated in sales, purchasing and management, bringing expertise in the stockholder, service centre and mill producer sectors.

Mr Darryl Macready joined Servosteel in 2017, being appointed Operations Director in 2018. With over 25 years of experience in operational, quality and safety management roles, and possesses a wealth of knowledge in steel processing for the end-user markets.

Ms Sarah Ostins, Finance and HR director has been at Servosteel since 2003 starting her career as an accounts clerk and is now an integral part of the Senior Management team.

Mr Richard Burton, IT and Systems Director, has worked at Servosteel for over 30 years starting on a work experience placement whilst graduating with BSc (Hons) in Computer Science bringing a wealth of knowledge and experience to the team.

Based in Dudley in West Midlands in UKK and with over 100 employees, Servosteel provides a wide range of processing and storage services to the steel industry which includes Coil Pickling, Slitting, Decoiling, Coil Recovery, SCS, Blanking and Laser services. Servosteel oversees an annual capacity of more than 500,000 tonnes of steel all situated in its centrally located warehouse offering multiple processing and storage options.

voda 15 april 2022 09:36

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Ohio Coatings Company Appoints Mr David Luptak as New CEO

Strategic Research Institute
Published on :
15 Apr, 2022, 6:01 am

Sewickley Pennsylvania based Esmark Inc & TCC Steel’s joint venture Ohio Coatings Company has appointed Mr David Luptak, current Esmark Industrial Group CEO, as the CEO of Ohio Coatings Company, effective 1 June 2022. Mr Luptak succeeds Mr Jim Tennant, who will retire after a successful 40-year career on 31 May 2022.

Mr Luptak joined Esmark Inc in 2006 when Esmark acquired Wheeling Pittsburgh Steel. At that time, and for several years as part of the Esmark enterprise, he served as president and chief operating officer of Wheeling Pittsburgh Steel. Later he served as Executive Vice President of Mill Operations for Esmark Inc, before being named Esmark Industrial Group CEO and Chief Legal Counsel. As CEO of Esmark Industrial Group, Luptak oversaw the purchase and expansion of Excalibur Machine Company, increasing the number of employees at its three locations and investing in new equipment and facilities.

Prior to joining Wheeling Pitt Steel and Esmark Inc, Mr Luptak held various positions at United States Steel Corporation over the course of 21 years. In 2000, he was named General Counsel of European operations and was promoted to Assistant General Counsel at the company’s Pittsburgh headquarters in 2004. The following year, Mr Luptak took over operations of the U.S. Steel’s Edgar Thomson plant in Braddock, PA. He is a graduate of the University of Pittsburgh School of Law.

Ohio Coatings Company is a world-class producer of tin plate steel, focusing on electrolytic tin coating lines for the sanitary food can and aerosol packaging markets. Headquartered in Yorkville, Ohio, OCC is a 50/50 joint venture owned by Esmark, Inc. and TCC Steel.

TCC Steel is the premier tin plater in South Korea servicing the domestic and primarily Asian markets for over 60 years. Established in 1959, TCC Steel was the first to produce electrolytic tin plate in Korea.

Esmark Inc is a diversified, privately-held family company with a portfolio of industrial companies with strong roots in the steel industry. Over the years, Esmark has diversified its interests and operations into a number of businesses engaged in the industrial and commodity sectors. Esmark has focused on several key industries including steel services, oil and gas exploration, aviation, real estate, professional services, technology and youth sports development.

voda 15 april 2022 09:37

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South Korean Steel Pipe Exports in Q1 Surges by 30%

Strategic Research Institute
Published on :
15 Apr, 2022, 6:03 am

Korea Bizwire reported that according to the Korea Iron & Steel Association, South Korean steelmakers exported 445,009 tonnes of steel pipe products in January March 2022 quarter, up 30.5% YoY on the back of the hike in international oil prices and an increase in demand for liquefied natural gas. Another factor behind the jump in the nation’s steel pipe shipments is the increase in demand for LNG to reduce greenhouse gas emissions.

Korea’s steel pipe shipments to the US jumped by 50.5% YoY to 276,973 tonnes. This is attributable to the hike in international oil prices that led to the invigoration of the oil, shale oil and gas industries in the US. Korean-made steel pipes account for 23% of American steel pipe imports.

voda 15 april 2022 09:37

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US Imposes AD Duty on Rectangular Pipe Imports from South Korea

Strategic Research Institute
Published on :
15 Apr, 2022, 6:07 am

The US Department of Commerce has announced the final results of its administrative review of the antidumping duty order on heavy walled rectangular welded carbon steel pipes and tubes from South Korea for the period between September 1, 2019 and August 31, 2020. US DOC has determined that South Korean companies sales of the subject goods were made below normal value during the period of review. The DOC has determined weighted-average dumping margins of 1.61% for Dong-A Steel Co Ltd and 10.24% for HiSteel Co Ltd.

The final antidumping duties for the country are applicable from April 7.

The products covered are certain heavy walled rectangular welded steel pipes and tubes from the Republic of Korea. Products subject to the order are currently classified under the Harmonized Tariff Schedule of the United States item number 7306.61.1000. Subject merchandise may also be classified under 7306.61.3000. Although the HTSUS numbers and ASTM specification are provided for convenience and for customs purposes, the written product description remains dispositive.

voda 15 april 2022 09:38

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OMK Blagoveshchensk Plant Marking All Products with QR Codes

Strategic Research Institute
Published on :
15 Apr, 2022, 6:10 am

Russian steel pipe maker United Metallurgical Company OMK’s Blagoveshchensk plant in Republic of Bashkortostan has begun applying QR codes to large-sized pipeline valves & all products manufactured by the OMK plant in Blagoveshchensk bear such a special marking. Last year, the plant purchased a laser machine that allows marking on rebar spindles with a diameter of up to 1000 millimeters. Prior to the transition to marking the entire product line, the plant applied codes to some of its types, so the plant's customers have already appreciated the convenience of this technology.

The QR code contains a unique manufacturer number, product name, profile size and brand characteristics. The widest possible use of QR codes on parts will increase the speed and accuracy of shipment of pipeline fittings to the client. Also, thanks to the identification of each unit of finished products, OMK Armstal customers will be additionally protected from the risk of purchasing counterfeit products. The Blagoveshchensk OMK plant sent the first batch of large-diameter fittings with the new marking to the customer at the end of March.

Laser marking of all products will allow customers to quickly and easily get a complete product description: the code is read by the camera of any smartphone. In addition to protection against counterfeiting, a QR code provides direct access to OMK digital services and prompt download of electronic quality certificates. I am confident that this innovation will make the relationship between the enterprise and customers even more convenient and efficient.

voda 15 april 2022 09:38

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Krakatau Steel Launches Rooftop Solar Power Project

Strategic Research Institute
Published on :
15 Apr, 2022, 6:14 am

Local media reported that Indonesian steel maker PT Krakatau Steel has entered the renewable energy business through its subsidiary PT Krakatau Daya Listrik. The company's rooftop solar panels installed in the Krakatau Steel Technology Building with 100 kWp on-grid capacity have been officially operated. The clean energy project has been running since November 2021 and was completed one month earlier than the target. The construction of the Rooftop PLTS is carried out using the resources and technology owned by PT Krakatau Daya Listrik. The 100 kWp PLTS Roof Project PTKS Technology Building that has been built has an annual energy projection of 152,600 kWh and an annual CO2 emission savings of 95.92 tonnes. Krakatau Steel President Director Mr Silmy Karim said “Renewable energy is inevitable. There is also a carbon credit that needs to be taken into account. KDL must be able to take this opportunity and become a pioneer with better business models, solutions, and services than the existing ones.

This Rooftop PLTS construction project is the second project run by PT Krakatau Daya Listrik after previously building a 102 kWp PLTS Roof at PT Krakatau Daya Listrik in 2020.

PTKDL's EBT business in the future will develop into EPC & Developer. The total projected project to be carried out until 2026 is 22.4 MWp which is divided into various forms of PLTS Rooftop and Floating PV. In 2022-2025, the PTKDL PLTS project will be implemented in the Krakatau Industrial Estate with a total capacity of 3.3 MWp. In addition, there are potential projects outside the Krakatau Industrial Estate with a total capacity of 4.9 MWp.

voda 15 april 2022 09:39

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Mr Sergey Sintsov Appointed as EVRAZ VP Sales & Logistics

Strategic Research Institute
Published on :
15 Apr, 2022, 6:16 am

Russian steel maker EVRAZ has announced appointment of Mr Sergey Sintsov to the position of Vice-President Sales & Logistics. In his new capacity, Sergey will lead the Company’s sales direction, focusing on the strategic development of trading operations, currently pursued via EVRAZ Market, EVRAZ Trading Company, East Metals AG, EVRAZ STEEL BUILDING, and EVRAZ STEEL BOX. Business digitalisation, developing customer relations and expanding the product range, implementing new business models will be high on his agenda.

Mr Sergey has the required experience and expertise. He joined EVRAZ Market (previously, OAO EVRAZ Metall Inprom and OAO Inprom) in 2004 as Head of the Nizhniy Novgorod Branch and served in a number of positions, prior to becoming the General Director of the company in 2013. Under Sergey’s stewardship, EVRAZ Market became one of the leading metal trading companies in Russia, successfully transforming its business model in 2021 to focus on the omni-channel sales approach.

M Sergey graduated from Nizhniy Novgorod State Technical University in 2004 with a degree in Engineering and earned another degree, in Economics, from Nizhniy Novgorod State Lobachevskiy University in 2010. Sergey is the winner of EVRAZ’s highest corporate award, EVRAZ Stele, in the Customers and Partners nomination.

voda 15 april 2022 09:39

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Thai Millcon to Form Recycling Joint Venture

Strategic Research Institute
Published on :
15 Apr, 2022, 6:19 am

The Bangkok Post reported that SET listed Thai steel manufacturer Millcon Steel expects to conclude a new deal with partners in the fourth quarter to jointly develop recycling businesses to add value to scrap. Millcon CEO Mr Pravit Horungruang said “Millcon is in talks with 4-5 foreign companies, mostly from Japan, for the joint venture. The recycling business is growing, driven by the global trend of reducing carbon dioxide released from manufacturing.”

The company also wants to pursue circular economy-based production, which promotes an upcycling process to add value to unwanted materials, making them usable again. Millcon wants its prospective business partners to join an end-of-life vehicle management project. Many ELV items, including steel, copper and plastic, can be recycled. Millcon currently imports ELVs from many countries, including Australia, Japan, South Korea and the Latin American region, for recycling at its plant, operated by its subsidiary Suntech Recycle & Decarbon Co. The plant is in the eastern province of Rayong. Suntech, which has a recycling capacity of 30,000 vehicles a month, plans to increase its capacity to 70,000 vehicles a month

Millcon Steel Public Company Limited was established in 1998 to manufacture and distribute steel products. In 2008, invested in Millcon Burapha Company Limited's “Green MILL” project, which is to construct an Electric Arc Furnace to produce billets. It also introduces the market to the innovation of threaded deformed bar. In 2015, Millcon Steel Pipe Company Limited was established to produce structural steel products and Saha Ruam Building Material Company Limited was established to distribute steel and construction materials.

voda 15 april 2022 09:40

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US Steel May Sell Kosice Steel Plant in Slovakia – Media Reports

Strategic Research Institute
Published on :
15 Apr, 2022, 6:24 am

The Spectator, citing a report in Hospodárske Noviny daily, reported that US Steel Košice is supposedly for sale again. According to Hospodárske Noviny, several foreign companies have shown an interest in buying the steelworks. It says that negotiations have been underway for some time already, but there is no information as to how many investors are involved, what phase the negotiations are in, or what the offers are. The newspaper cited reliable sources in the east of Slovakia, but neither the company nor the Economy Ministry have provided a clear answer on the veracity of the story. This is not the first time reports have emerged claiming U. S. Steel was about to be sold. Five years ago, the company was reportedly considering two offers from Chinese buyers and one from a Czech firm.

Market analyst suggest that the motivation behind the sale might be that the company's income for last year set an all-time record, thus the plant's sale price could be higher than the last time it was approached by buyers. The price is high because of both the income and the record high prices of steel.

US Steel Košice sro is a steel company located in Košice in Slovakia. In November 2000, the ownership of the complete metallurgical operation of former Východoslovenské železiarne Košice was transferred to US Steel. It is an integrated steel producer with production capacity of 4.5 million tonnes of steel per year. It produces

Hot Rolled Products

Cold Rolled Products

Electrical Products

Hot Dip Galvanized Products

Organic Coated Products

Tin-plated Products

Spiral Welded Pipes

voda 15 april 2022 09:40

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ArcelorMittal Acindar Investing in Wind Power Project

Strategic Research Institute
Published on :
15 Apr, 2022, 6:27 am

ArcelorMittal’s Argentinian steelmaker Acindar has signed an agreement with Petroquimica Comodoro Rivadavia to invest USD 140 million in a renewable energy project. Acindar acquired 49% stake of a local energy company to develop the project in partnership with Petroquimica Comodoro Rivadavia. The two companies said the project should have a 76.5-Megawatt capacity and will be located inside the San Luis Norte wind farm. The project will feature 17 of Vestas’s V150 4.5MW turbines, installed on 90-metre towers. It will increase capacity by 76.5MW and is expected to come on-stream during the second half of 2023. In addition, the companies will install a 10MW solar park

The project will allow Acindar to supply part of the energy needs of its steel business. Acindar expects to invest USD 200 million in Argentina by 2025 to expand steel output capacity, as it eyes steel exports. Acindar CEO Everton Negresiolo said “Adding renewable energies to our plant’s energy supplies not only brings a benefit to the company, but also to the economy as a whole, since electrical capacity is released for other purposes and the demand for foreign currency is reduced.”

voda 15 april 2022 09:43

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Jindal Stainless Reportss 23% Increase in Sales in 2021-22

Strategic Research Institute
Published on :
15 Apr, 2022, 6:29 am

Indian stainless steel giant Jindal Stainless Limited’s has announced that its total sales volume for FY 2021-22 stood at 1,011,292 tonnes, up by 23% as compared to FY 2020-21. The sales volume was backed by JSL’s agile supply chain and a flexible product mix with a focus on value added product segments. Despite volatility and global disruptions in raw material supply and logistics, JSL effectively upped its exports.

During Q4 of FY 2021-22, Company’s sales volume stood at 269,168 tonnes, registering an uptick of 9% on QoQ and 6% on YoY basis. Company’s exports sales proportion doubled to 32% of sales volumes in Q4 of FY 2021-22 as compared to 16% Q4 of FY 2020-21. The domestic market continued to be marred by cheap stainless steel imports from China and Indonesia in Q4FY22. Domestic demand increased in segments like lifts and elevators and railways. However, demand in consumer facing segments like hollowware and pipe and tubes remained muted due to channel de-stocking, owing to increase in raw material prices.

voda 15 april 2022 09:44

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EU Imposes AD Duty on Graphite Electrode Imports from China

Strategic Research Institute
Published on :
15 Apr, 2022, 6:31 am

The EU announced on 7 April 2022 decision to impose a definitive anti-dumping duty on graphite electrode systems originating in China. These measures follow an investigation which showed that Chinese graphite electrodes were being sold in the EU at significantly dumped prices. EU producers of graphite electrodes were unable to compete with such prices and suffered injury as a result. The measures undertaken by the European Commission protect EU producers from such unfair trade practices. The definitive dumping margin ranges from 23.0% to 74.9%, depending on companies. The period of investigation was from January 1, 2020 to December 30, 2020, and the injury assessment period was from January 1, 2017 to the end of the investigation period.

The original AD investigation was launched on 17 February 2021 based on the application filed by Graphite Cova GmbH, Showa Denko Carbon Holding GmbH, and Tokai Erftcarbon GmbH on 4 January 2021. An affirmative preliminary ruling was made on 15 October 2021.

Graphite electrodes are used in steel production and are an essential component for the world's recycling industry, since they are the only product that can conduct the power and withstand the heat necessary to melt scrap metal. The EU market for graphite electrodes is worth EUR 765 million. The products involved are classified under CN code ex 8545 11 00 (TARIC codes 8545 11 00 10 and 8545 11 00 15).

At the same time, the EU measures are mindful of the needs of EU users of graphite electrodes. Certain types of graphite electrodes – currently produced in very small quantities in the European Union – are excluded from the measures and thus their stable supply remains guaranteed.

voda 15 april 2022 09:44

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ThyssenKrupp Steel Sends 1,300 Employees on Short-Time Work

Strategic Research Institute
Published on :
15 Apr, 2022, 6:33 am

German news paper Handelsblatt reported that the steel division of ThyssenKrupp has decided on short time work for some of its employees in response to the losses incurred as a result of the Ukraine war and around 1,300 of around 18,000 employees are affected in Duisburg and at other Thyssen-Krupp Steel Europe AG locations. Some of the short-time work has already started. The company had reached an agreement on short-time work with employee representatives in March.

According to Steel Works Council Chief Mr Tekin Nasikkol, the agreement provides for an increase and a lump sum in the event of short-time work, through which the employees are well protected.

The steelmakers are struggling with weakening demand from the automotive industry and sharp increases in raw material and energy prices.

voda 15 april 2022 09:45

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voestalpine Selling Stake in Texas DRI Plant to ArcelorMittal

Strategic Research Institute
Published on :
15 Apr, 2022, 6:36 am

Austrian steel maker voestalpine is selling 80% of its shares in direct reduction plant in Texas in USA to ArcelorMittal. The enterprise value for 100% of the shares in voestalpine Texas is approximately EUR 900 million. Taking into account the expected debt development of voestalpine Texas as of today, the transaction will lead to a cash inflow in the amount of the equity value for 80% of the shares in voestalpine Texas of approximately EUR 610 million at closing and thus to a significant reduction of the net financial debt of the voestalpine Group. This partnership also secures a long-term agreement for the Group to annually supply 420,000 tons of the hot briquetted iron produced at the plant. This provides the basis for further decarbonization of steel production at Linz and Donawitz (greentec steel). In addition, the partnership reduces the high spot market risk for the quantities not required. The HBI plant has an annual production capacity of around two million tons.

The HBI plant in Texas was announced in 2012 and started operating four years later. The costs of construction amounted to around EUR 870 million. It was necessary to make unplanned write-offs totaling EUR 372 million in 2019 and 2020 in response to the difficult market environment. Over the past years, the voestalpine subsidiary has succeeded in gradually stabilizing the business model as well as the product and customer structure.

voestalpine has developed a clear plan to decarbonize steel production with greentec steel. Once an electric arc furnace goes into operation at each of the Linz and Donawitz sites in early 2027, carbon emissions can be significantly reduced, by around 30%. This represents almost 5% of Austria’s annual carbon emissions.

Bijlage:

voda 15 april 2022 09:46

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worldsteel Forecasts 0.4% Growth in Steel Demand in 2022

Strategic Research Institute
Published on :
15 Apr, 2022, 6:38 am

The World Steel Association has released its Short Range Outlook for 2022 and 2023. worldsteel forecasts that steel demand will grow by 0.4% in 2022 to reach 1,840.2 million tonne after increasing by 2.7% in 2021. In 2023 steel demand will see further growth of 2.2% to reach 1,881.4 million tonne. In 2021, recovery from the pandemic shock turned out to be stronger than expected in many regions, despite continuing supply chain issues and COVID waves. However, a sharper than anticipated deceleration in China led to lower global steel demand growth in 2021. For 2022 and 2023, the outlook is highly uncertain. The current forecast is made against the backdrop of the war in Ukraine and is subject to high uncertainty. The expectation of a continued and stable recovery from the pandemic has been shaken by the war in Ukraine and rising inflation.”

worldsteel said “The magnitude of the impact of this conflict will vary across regions, depending on their direct trade and financial exposure to Russia and Ukraine. There is an immediate devastating effect on Ukraine, consequences for Russia, and major impact on the EU due to its reliance on Russian energy and its geographic proximity to the conflict area. The impact will also be felt globally via higher energy and commodity prices – especially raw materials for steel production – and continued supply chain disruptions, which were troubling the global steel industry even before the war. Furthermore, financial market volatility and heightened uncertainty will undermine investment.

Such global spillovers from the war in Ukraine, along with low growth in China, point to reduced growth expectations for global steel demand in 2022. There are further downside risks from the continued surge in virus infections in some parts of the world, especially China, and rising interest rates. The expected tightening of US monetary policies will hurt financially vulnerable emerging economies.

The outlook for 2023 is highly uncertain. Our forecast assumes that the confrontation in Ukraine will come to an end in the course of 2022 but that the sanctions on Russia will largely remain. Additionally, the geopolitical situation surrounding Ukraine poses significant long-term implications for the global steel industry. Among them are a possible readjustment in global trade flows, a shift in energy trade and its impact on energy transitions, and continued reconfiguration of global supply chains.

Global construction activity continued to recover from the lockdowns to record growth of 3.4% despite a contraction in China in 2021. The recovery was driven by an infrastructure push as part of recovery programmes in many countries, and these and investments related to the energy transition will likely drive the construction sector’s growth for years to come. However, the construction sector faces some headwinds from rising costs and interest rates. The recovery of the global auto industry in 2021 was disappointing as the supply chain bottlenecks arrested the recovery momentum in the second half of the year. The war in Ukraine is likely to delay any return to normal of the supply chain issues, especially in Europe. Despite the slump in global auto production, the EV segment grew exponentially during the pandemic. Global sales of EVs in 2021 reached 6.6 million units, almost doubling from 2020. The share of EVs in total car sales increased from 2.49% in 2019 to 8.57% in 2021.”

Vertraagd	23 apr 2024 17:35
Koers	23,470
Verschil	-0,640 (-2,65%)
Hoog	24,100
Laag	23,400
Volume	3.800.729
Volume gemiddeld	2.432.254
Volume gisteren	2.204.739

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