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NCDEX to Relaunch Steel Futures Contract on January 18

India’s National Commodity and Derivatives Exchange will relaunch steel futures contract on January 18. The contracts will initially be available for months expiring in February, March and April. The steel contracts will trade long steel products like ingots and billets having a trading unit of 10 tonnes. The basis centre will be Gobindgarh in Punjab while Ghaziabad in Uttar Pradesh will be the additional delivery centre.

NCDEX Managing Director and CEO Mr Vijay Kumar said the steel contracts will provide a reliable and transparent risk management tool to hedge against volatile prices.

Source - Strategic Research Institute
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Beursblik: Deutsche Bank verhoogt koersdoel Aperam

FONDS KOERS VERSCHIL VERSCHIL % BEURS
Aperam
34,87 -0,72 -2,02 % Euronext Amsterdam

(ABM FN-Dow Jones) Deutsche Bank heeft maandag het koersdoel voor Aperam verhoogd van 32,00 naar 36,00 euro, maar handhaafde het Houden advies.

"Aperam blijft een kwaliteitsaandeel in de staalsector", stelden de analisten. De kans op opnieuw een meevaller in het afgelopen vierde kwartaal kan volgens de bank dan ook niet worden uitgesloten.

Aperam lijkt volgens Deutsche Bank bezig om de grootste kostenbesparingsactie sinds 2012 en 2013 voor te bereiden.

Zij wezen daarbij op het rendement op de vrije kasstroom in de komende jaren van 6 tot 9 procent.

"We vinden dat de onderneming extreem goed gepositioneerd is om aandeelhouders te blijven belonen", schreven de analisten. Zij mikken op een dividend van 1,75 euro per aandeel.

Maar het aandeel steeg sinds november al met 63 procent en deed het daarmee beter dan alle sectorgenoten. Reden om het Houden advies te handhaven, aldus Deutsche Bank.

Het aandeel Aperam daalde maandag 1,7 procent naar 34,98 euro.

Door: ABM Financial News.
info@abmfn.nl
Redactie: +31(0)20 26 28 999

© Copyright ABM Financial News B.V. All rights reserved.
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Indian Railways Unveils New Iron Ore Policy for Rake Allocations

India’s Ministry of Railways has approved a new iron ore policy governing the allocation of rakes and transportation of iron ore. This new policy has been named as Iron-ore Policy 2021 and shall come into effect from February 10 2021. The provisions of the new policy will be updated in the rake allotment system module by the Centre for Railway Information Systems. As per the new policy, higher priority will be given to the movement of iron-ore traffic for domestic manufacturing activity. Within the domestic movement of iron-ore traffic, priority preference will be given to steel, pig iron, sponge iron, pellet, or sinter plant owning customers having their own private sidings at both the loading as well as unloading ends. They will be followed by customers with private siding at either loading or unloading end. Customers without any private siding of their own relying totally on public good sheds, sidings will come next in the priority list.

The categorization of priority of movement of iron ore has now been based on the availability of railway infrastructure developed by the customer, for loading or unloading, and the nature of movement between various types of sidings with a view to maximize iron-ore movement by rail. Under the fresh policy, old and new plants will be treated similarly as far as allotment and loading of rakes is concerned. The priority preferences for the customers will be self-generated by the system based on the customer profile fed in the system by the concerning zone.

Rail Ministry said “Scrutiny of documentation by Railways has been removed. Executive Director Rake Movement of Railway Board office Kolkata which has been sanctioning programmes for movement of iron ore traffic will have no regulatory role in the new policy. The office will be undertaking an analysis of various iron-ore traffic for further improvement of Railway freight loading. Customers now desirous of moving their traffic under any priority will have to give an undertaking that they have procured, transported and utilized materials as per rules and regulations of Central and State Governments. For lapses, customers will be liable to be taken up as per the law of land and railway will stand indemnified for any such lapses committed by customers.”

Source - Strategic Research Institute
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Turkish Steel Exports Shrink in 2020

Turkish Steel Exporters'Association CIB announced that Turkey's steel exports to 197 countries in 2020 shrank by 2.8% YoY to 20.6 million tonnes resulting in 8.2% YoY dip in steel exports to USD 12.7 billion. Steel Exporters Association CIB Chairman Mr Adnan Aslan said “European and North American markets shrank during the year, but thanks to Asian and South America markets' interest in Turkish steel, the loss was recovered. Israel, Italy, Yemen, Iraq, Romania, Egypt, US, Morocco, Hong Kong and Spain were the countries that imported most from Turkey during the same period. We have dominated these markets as China has not exported to Africa, the Far East and South America for three years. Compared to its competitors, Turkey's recognition and reliability in these markets are rising steadily. We will continue to exist in these markets.”

Mr Aslan added that Turkish steel sector has set a new target to maintain its active role in the global market. He said "We expect 2021 to be good for the steel industry. In the new period, we will increase our export figures even more and diversify our export markets. Due to the quotas implemented by Europe, the import and trade policy duties implemented by the US, there may not be an increase in exports to these destinations in 2021. However, we forecast that we will increase our exports to the Far East, South America and Africa compared to the previous year. We will focus especially on the Far East, South America and West Africa. The Turkish steel industry aims to reach approximately 23 million tonnes with a rise of 10%, while reaching USD 15 billion with an increase in value by 15% in 2021.

Source - Strategic Research Institute
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US Sanctions Many Iranian Entities for CRGO Imports from China

In June 2020, the United States State Department had sanctioned the Islamic Republic of Iran Shipping Lines underscoring the fact that IRISL is the preferred shipping line for Iranian proliferators and procurement agents. Now, United States has designated seven entities and two individuals for allegedly flouting US sanctions against the Islamic Republic of Iran Shipping Lines

IRISL knowingly transferred, directly or indirectly, to Iran grain oriented electrical steel to at least one Iranian person on the List of Specially Designated Nationals and Blocked Persons List maintained by the Treasury Department's Office of Foreign Assets Control, namely Hoopad Darya Shipping Agency Company. The State Department is also imposing sanctions on Mohammad Reza Modarres Khiabani, the Chief Executive Officer of IRISL, who has been determined to be a principal executive officer, or person performing similar functions and with similar authorities, of IRISL.

The State Department is also designating China based Jiangyin Mascot Special Steel Co LTD. Jiangyin Mascot Special Steel Co LTD transferred grain oriented electrical steel to Iran via the Islamic Republic of Iran Shipping Lines

The State Department is also designating Iran Transfo Company and Zangan Distribution Transformer Company. Both of these entities transferred grain oriented electrical steel to at least one Iranian person on the SDN List, namely Hoopad Darya Shipping Agency Company

Separately, the State Department is also designating the UAE based Accenture Building Materials, Iran’s Mobarakeh Steel Company and the IRISL subsidiary Sapid Shipping. The State Department is also imposing sanctions on Hamidreza Azimian, the Chief Executive Officer of Mobarakeh Steel Company, who has been determined to be a principal executive officer, or person performing similar functions and with similar authorities, of Mobarakeh Steel Company.

Source - Strategic Research Institute
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Northern Ireland Faces Surprise Tariff on Steel Imports

Belfast Telegraph reported that the steel sector in Northern Ireland is confused and uncertain after it emerged a surprise 25% safeguard duties will be imposed on imports not from Great Britain. The quota started on 1 January, after the end of the Brexit transition period. Manufacturers and traders in Northern Ireland had no idea this extra charge imposed by Her Majesty's Revenue and Customs would be added to their costs until last Friday. Irish Social Democratic and Labour Party MLA Mr Colin McGrath said he has written to the UK’s Chancellor of the Exchequer Mr Rishi Sunak on the issue. He said "Let's be under absolutely no allusion. This decision by the UK Government has the potential to decimate the steel industry in the north. I have already written to Rishi Sunak MP and called upon him to answer why the duty was imposed, why it was imposed without warning and without consultation with businesses here, and I am calling for it to be scrapped."

British Labour MP Mr Stephen Kinnock, whose constituency includes the Port Talbot Steelworks in Wales, has raised the issue in the House of Commons Future Relationship with the European Union Committee. He told RTE News "Once we have maxed out our quota, which is expected to happen in the coming months, then every tonne of steel that the UK exports to the EU, and by EU here we include NI, will be subject to a 25% tariff. The minute that happens, the price of your steel becomes uncompetitive, and this would have a hugely damaging impact. This is why it's absolutely vital that the UK government engages intensively with the EU, to ensure that our steel industry can continue to export to the EU on a quota and tariff free basis. This issue is massively compounded by the fact that steel going from GB to NI is included in the quota. So, there's no difference between steel going to Germany from the UK and steel going to Belfast. It is part of the same quota."

The Brexit Protocol means that Northern Ireland is treated as if it were part of EU's single market. Following Brexit, the UK has its own quarterly steel safeguard for January-June 2021, mirroring the European system. Under the Brexit trade deal, traders and manufacturers in Great Britain are protected for at least six months by a quota safeguard, meaning that the 25% tariff does not immediately apply. But negotiators did not include Northern Ireland in the quota arrangement. The protocol terms also mean that any exports from Britain to here will count as part of the UK's quota. Once it is exceeded, then tariffs of 25% would apply on British steel entering Northern Ireland.

Source - Strategic Research Institute
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Paul Wurth Stamp Charging Coke Oven Technology Successful in China

Paul Wurth recently announces that the company has been awarded recent orders for engineering services, the supply of coke oven machines as well as of SOPRECO valves to be implemented at two new Jumbo coke oven batteries of stamp charging type built by the end customer Xinxing Ductile Pipe Co Ltd in Handan City in Hebei Province in China. The Chinese customer is relying on proven Paul Wurth stamp charging technology for large size batteries of the next generation.

In the frame of a cooperation agreement on stamp charging technology with Shandong Province Metallurgical Engineering Co Ltd, Paul Wurth will provide engineering services for the construction of two new stamp charged coke oven batteries, featuring 69 ovens each with an oven height of 6.73 meters and designed for a gross production of 1.940 million tonnes of coke per year. Relying on Paul Wurth expertise for eco-friendly cokemaking solutions, this project is part of the Chinese government’s environmental programme to reduce emissions generated by coking plants. The batteries’ environmental performance will be significantly enhanced by the installation of Paul Wurth’s SOPRECO system for Single Oven PREssure Control and reduction of fugitive emissions. Start up of the plant is expected in the third quarter of 2021.

For the same project, Paul Wurth also secured its first order for Stamping Charging Pushing machines in China. This represents a major project for stamping machines technology after the assets of KOCH Industrieanlagen entered Paul Wurth’s cokemaking portfolio in 2018. Paul Wurth will execute the complete engineering of the new 6.73 meter Stamping Charging Pushing machines and supply its stamping systems as part of a key equipment package to Zhangjiagang Changli Machinery Co., Ltd, who is in charge of manufacturing, erection and commissioning of both SCP machines at the new Jumbo coke oven batteries of the final customer, Xinxing Ductile Pipe, in Hebei Province. The challenging timeline foresees a first pushing of coke by end of August 2021.

Source - Strategic Research Institute
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US Steel Completes Big River Steel Acquisition

United States Steel Corporation has closed its acquisition of the remaining equity of Big River Steel for approximately USD 774 million from cash on hand. The transaction met customary closing conditions, including antitrust approval from the United States Department of Justice.

Big River Steel is a LEED certified Flex Mill in northeast Arkansas that is believed to be the newest and most advanced flat rolled mill in North America. Big River Steel’s advanced manufacturing technology and skilled operators combined with US Steel’s product development capabilities and intellectual property have allowed Big River Steel to produce 14 advanced US Steel grades, including substrate for its XG3 grade of Generation 3 advanced high strength steel. Big River Steel’s Phase II A expansion doubled the mill’s hot-rolled steel production capacity to 3.3 million tons annually, establishing it as one of the largest electric arc furnace-oriented flat-rolled mills in North America. The Phase II A expansion was completed in November 2020, ahead of schedule and below budget.

Barclays served as exclusive M&A financial advisor, while PJT Partners and Rothschild & Co served as financing advisors to US Steel on the acquisition, and Milbank LLP provided legal counsel.

Source - Strategic Research Institute
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SAIL OFS Receives Strong Market Response

Steel Authority of India Limited’s offer for sale opened on 14 January 2021 for non-retail investors, while both retail as well as non retail investors were allowed to bid on 15 January 2021. On 14 January 2021, the OFS received subscription for 747,460,041 shares or 413% against the base non retail offer size of 180,710,481 shares. The government decided to exercise the oversubscription option of 206,526,264 equity shares, 5% equity, in addition to the base offer. The retail segment received bids for 124,835,009 shares or 483.56% of the base retail offer size. The non-retail segment received bids for 10,153,964 shares or 39.33% of the base retail offer size. Accordingly, the final share sale was 413,052,528 shares, which aggregates to INR 2,664 crore, constituting 10% of the paid-up equity share capital of SAIL.

The Government of India initially offered to sell 206,526,264 shares, constituting 5% paid up share capital of the company, through the OFS. The floor price for the OFS was set at INR 64 per shares, at a 14.2% discount to SAIL's closing price of INR 74.70 on 13 January 2021.

The Government of India held 75% stake in SAIL as of 30 September 2020. The SAIL OFS is part of the government's disinvestment programme through which it is targeting to raise a record INR 2.1 lakh crore in the current fiscal ending 31 March 2021.

Source - Strategic Research Institute
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Baosteel Zhanjiang Steel Plant Commissions Steel Melting Shop

Baosteel’s Zhanjiang Iron and Steel Plant, replacing facilities at Baosteel's subsidiaries in Shanghai and Nanjing, completed hot trials of 350 tonnes Converter No4 and Continous Slab Caster No 3 on January 9, 2020 at its plant in Guandong Province, a couple of months earlier than planned initially. Since the start of the project on April 9, 2019, the Zhanjiang Iron and Steel project team has achieved the construction timelines. Zhanjiang Steel Plant is now capable of producing 8.92 million tonnes of crude steel, 8.75 million tonnes of semis and 8.2 million tonnes of finished steel.

Last piece of equipment under this stage 5,050 cubic meters BF No 3 will be put into operation in July 2021. After the whole steelmaking project is commissioned, the steelworks will add 3.6 million tonnes of crude steel. 3.6 million tonnes of semis and 2.66 million tpy of finished steel

It was also reported that BaoSteel announced the plans in December 2020 to expand Zhanjiang Steel to 21 million tonnes by 2025.

Source - Strategic Research Institute
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US DOC Reduces AD Duty on Welded Line Pipe from South Korea

US Court of International Trade on January 4, 2021 sustained the Department of Commerce's second remand results pertaining to the first administrative review of the antidumping duty order on welded line pipe from the Republic of Korea covering the period of review of May 22, 2015 through November 30, 2016. Commerce is notifying the public that the CIT's final judgment in this case is not in harmony with Commerce's amended final results in the first administrative review of WLP from Korea. Consistent with the CIT's final judgment, Commerce is amending the weighted average dumping margins calculated for Hyundai Steel Company & Hyundai HYSCO, SeAH Steel Corporation and the 22 non selected companies. Commerce calculated revised weighted average dumping margins for Hyundai Steel and SeAH of 9.24% and 4.70% respectively. In addition, as a result of Commerce's recalculation of the weighted-average dumping margins for the mandatory respondents, Commerce revised the review-specific average rate applied to the non-selected respondents to 6.97%.

On August 10, 2018, Commerce published its Amended Final Results. As reflected in the Amended Final Results, Commerce calculated weighted-average dumping margins of 18.77% for Hyundai, 14.39% for SeAH and 16.58% for the 22 companies receiving the review specific average rate. Hyundai Steel, SeAH, NEXTEEL Co Ltd and Husteel Co Ltd appealed to the CIT.

Source - Strategic Research Institute
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NLMK to Boost Order Accuracy Using Digital Production Planning

Russian steel giant NLMK Group has started commercial operation of a digital solutions package for production planning at its Lipetsk site. It will improve the accuracy of customer order fulfillment, ensure tracking transparency, and increase production productivity. The all in one digital platform integrates order acceptance, setting order fulfillment deadlines, calendar planning and production scheduling. Upon receiving a new order, the system automatically calculates the execution time taking into account capacity utilization and optimal equipment operation schedules, among other factors. The system will be integrated with the NLMK.shop personal account: NLMK customers will be able to track order status and location in real time.

NLMK Lipetsk Managing Director Mr Vyacheslav Vorotnikov said “The new digital platform called for a large-scale transformation of our sales, planning, production, logistics, and R&M business processes. The implemented solutions are based on the best industry practices, including end-to-end order planning with guaranteed delivery dates accurate to a week and daily plan optimization. As a result, we will be able to ensure higher accuracy of deliveries, to boost the competitive advantages of our customers, and to grow production volumes by debottlenecking our process chain.”

Investments in the digital solutions package exceeded RUB 1.2 billion.

Source - Strategic Research Institute
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Bengaluru Metro Awards Track Supply Contract to JSPL

Bangalore Metro Rail Corporation Ltd on January 12, 2021 awarded INR 38.06 crore contract for supply of 60 E1 880 Grade Rails as per Indian Railway Specification T-12-2009 for Bangalore Metro Rail Project Phase-2 to Jindal Steel & Power Ltd. Bangalore Metro Rail Corporation Ltd had invited tenders for these rails in July 2020 with a 12 month deadline vide notice no BMRCL/Phase-2/60E1 880 Grade Rails/RT01/2020/68 dated 10.07.2020

This is the third such rail/track laying contract for the Phase 2 project. In May 2018, Texmaco Rail and Engineering was awarded the contract to deliver Rs 521 crore worth 60E1-880 grade rails. Similarly, Mitsui & Co was contracted in 2019 to supply 60E1-1080 grade head hardened rails in December 2019.

Source - Strategic Research Institute
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Texas Isle Announces New ERW Pipe Mill in Robstown in Texas

Leading provider of OCTG, Line Pipe, and associated services in US Tex Isle Inc announced plans to open a new steel tubular mill located in Robstown in Texas in the 3rd quarter of 2021. The mill will be housed in a 60,000 square foot facility, bringing the company's total under roof to 250,000 square feet, and is designed to produce steel tubes from 2.375- 8.625 inches OD. Overall, the facility will have the ability to produce 350,000 tons per year, of which, 250,000 tons is slated for API material with the remaining 100,000 tons reserved for structural products. The Greenfield project will be adjacent to the company's current OCTG heat treating, inspection, and threading facility in Robstown. When complete, the mill will build on Tex-Isle's Asset Based Distribution model and provide feedstock to its other facilities. The mill will add to Tex-Isle's growing footprint in the coastal bend area and bring Tex-Isle's total capital investment in the region to nearly USD 100 million. The addition of structural tubulars will deliver much needed supply to the rapidly growing Corpus Christi and South Texas regions.

The project is another step for Tex-Isle in an ongoing effort to be a leader in the industrywide push for greater ESG stewardship The facility is designed to run on 100% electric technology; allowing for the use of renewable energy to power the mill. In addition to all electric manufacturing, the pipe mill's raw material, hot-rolled coil, will be supplied by manufacturers using EAF technology, which produce their product from as much as 85% recycled material.

Tex-Isle is a third generation, family owned business, founded by Mr Hans Kayem in 1959 as a distributor of oil country tubular goods and line pipe. In 2009 Tex-Isle embarked on a vertical integration initiative, which, over the past decade has included the creation of two new divisions: Tex-Isle Coating in George West in Texas and Tex-Isle Processing in Robstown in Texas.

Source - Strategic Research Institute
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PSM Workers Urge Supreme Court to Declare Termination Illegal

Pakistani DAWN reprted that Pakistan Steel Mills Corporation’s workers union has urged Pakistan’s Supreme Court to declare the recent retrenchment, sacking and removal of about 9,350 employees of the Pakistan Steel Mills Corporation illegal. The petition, instituted by senior counsel Mr Rasheed A Razvi on behalf of the Pakistan Steel Peoples Workers Union, requested the Supreme Court to strike down these sackings after declaring the same a violation of the fundamental rights of workers. Supreme Court is also requested to suspend the directives and notification regarding the retrenchment and removal of 9,350 employees till the time the petition is pending before the court. The secretary of industries and production, ministries of finance and inter provincial coordination, the Economic Coordination Committee, Coun­cil of Common Interests, chief secretary of Sindh and Pakistan Steel Mills Corporation have been named as respondents in the petition.

The petition also urged the court to declare that the privatisation/retrenchment and evaluation of the mills’ machinery and its land and assets being initiated by the government were without jurisdiction, illegal, mala fide and carried out without following the directives of the Supreme Court as laid down in the Wattan Party case through the Cabinet Committee on Privatisation.

The petition requested the court to declare the retrenchment plan and government actions undertaken subsequent to such plan, including issuance of retrenchment letters to 4,544 employees in the first phase, illegal and without jurisdiction and against the fundamental rights of the petitioners.

It also asked the Supreme Court to declare the actions of ECC releasing the retrenchment plan ultra vires and without jurisdiction as this exercise was futile in nature and against the principle laid down in the Wattan Party case.

Through the petition a question of public importance and enforcement of fundamental rights has been raised, particularly Articles 4, 9, 14, 18, 23, 24 and 25 of the Constitution, as well as consideration of principles enshrined in Articles 37 and 38.

The petition argued that a national institution of paramount importance was being privatised by the current management of PSM allegedly in connivance with the current political regime. An attempt to privatise the PSM was also made in 2006, but that was revoked and aborted in the Wattan Party case judgement.

The PSM is strategically located 40km south-west of Karachi in close vicinity of Port Qasim, spread over an area of 19,013 acres with 10,273 acres for the main plant and downstream industries, 8,071 acres for the township and 271.28 acres for the water reservoir.

Source - Strategic Research Institute
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ArcelorMittal Opens Retail Franchise in Sao Joao da Boa Vista

ArcelorMittal opened a retail franchise in Sao Joao da Boa Vista in the state of Sao Paulo in Brazil. The store is located at Rua Oscar Pirajá Martins in Jardim Santo André neighborhood. This is a new business model, in partnership with an entrepreneur, for the sale of steel products and solutions, an unprecedented initiative in Brazil. The environment has a differentiated design and service and offers more than 200 steel products, in the following lines: Civil Construction, Industry, Fences, Welds and Wires, Tubes, Sheets and Complementary Products for the transformation of our Steel. The focus is on the final consumer bricklayer, locksmith, architect, contractor, small industry or person who uses steel to build or renovate their homes. Construtora Mantiqueira is the business partner in the city of Sao Paulo, located on the border with Minas Gerais.

ArcelorMittal Acos Longos Regional Sales Director René Kahler said “The action reinforces ArcelorMittal's pioneering spirit in retail, expands the reach of our stores and bets on the expansion and growth of the region.”

ArcelorMittal Acos Longos expects to open another 15 stores in Brazil in 2021.

Source - Strategic Research Institute
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Tenaris Eliminates 98% of VOCs at Bay City Pipe Plant in Texas

Leading OCTG producer Tenaris has recently implemented new efficiencies in the coating booth at its state of the art seamless facility in Bay City in Texas, optimizing the use of water based varnish and further reducing the emission of volatile organic compounds. A key component in this initiative was the installation of a prefilter system and the improvement of a capture system in the line that processes through the facility’s thermal oxidizer, which destroys 98% of the few VOCs present through the use of high temperatures.

Adaptations were made to the water-based varnish application process and exhaust system in the finishing area, reducing overspray and waste. This resulted in a 42% improvement in the use of varnish coating and a reduction of 35% in varnish waste per ton. In addition, a varnish recovery process was put in place, which yields 30% of the recovered varnish for reuse.

Source - Strategic Research Institute
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thyssenkrupp Uhde Water Electrolysis Plant at Hydro Quebec

thyssenkrupp Uhde Chlorine Engineers' Green Hydrogen product division has been awarded an engineering contract in order to install an 88 megawatt water electrolysis plant for Canadian energy company Hydro Quebec after successfully completing a feasibility study. The water electrolysis plant will be built in Varennes, Quebec, and is to produce 11,100 tonnes of green hydrogen annually. Both the hydrogen and the oxygen, a by-product of the electrolysis process, will be used in a biofuel plant to produce biofuels from residual waste for the transportation sector. With a capacity of 88 MW, this plant will be one of the world's first and biggest production facilities for green hydrogen. Commissioning is scheduled for late 2023.

Water electrolysis is the key technology for decarbonizing the industrial sector as, to date, it is the only scaled technology for producing green hydrogen. Green raw materials only become economically viable if they are produced and used on an industrial scale, as this is the only way that scaling effects can be reflected in an improved cost structure. thyssenkrupp's water electrolysis technology offers the world's largest standard modules, which can be easily combined to achieve capacities in the multi-megawatt and gigawatt range.

State owned company Hydro Quebec is one of the largest hydropower suppliers in North America due to the enormous hydraulic energy resources in the province of Quebec.

Source - Strategic Research Institute
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Steel Rolling Mills in Egypt Facing Shortage of Billets

Daily News Egypt reported that steel rolling mills in Egypt are currently suffering from low availability of iron billets production locally and Chamber of Metallurgical Industries at the Federation of Egyptian Industries member and Chairperson of Al Gioshy Steel Mr Tarek El-Gioushy called for urgent intervention by all government agencies and ministries. Mr El-Gioushy said that the government involvement would help save rolling mills that have been suffering since the issuance of the decision to impose custom duties on iron billet imports.

Mr El-Gioushy said “Factories producing billet ore locally give priority to the rolling line needs of their factories and the supply is only made to rolling mills factories when the demand for rebar shrinks locally. Factories producing billet locally do not satisfy the needs of rolling mills manufacturers in any way. There is severe arbitrariness by factories that produce billet crude locally towards rolling mills factories because both parties are competing in the final product, which is rebar.”

He demanded that the government reconsider that decision, particularly since the circumstances the decision was based on have since changed. The most important of these changes is the significant increase in global billet prices, from USD 270 per tonne at the time the decision was made, to the current price of USD 550 per tonne.

In October 2019, Egypt’s Ministry of Trade and Industry imposed protective duties on Egypt’s imports of billet crude, which will continue until April 2022. This has been put in place at a decreasing rate, starting from 16% on every tonne of billet imported from abroad.

Source - Strategic Research Institute
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Pakistan to Invite EoI for PSM Revival by March 2021

Pakistani media reported that investors from China, Russia and Korea are taking interest in the revival of Pakistan Steel Mills, which is closed since 2015. Pakistan’s Federal Minister for Privatisation Mohammed Mian Soomro informed a meeting that detailed meetings are being held with potential investors regarding the revival of Pakistan Steel Mills. The Minister was also told that the land valuation of PSM will be completed by the end of January and that Expression of Interest regarding PSM will be sought in March this year.

PSM was closed down in 2015. The loans and liabilities had increased to PKR 230 billion and losses to PKR 200 billion. The federal government has to pay PKR 750 million for salaries and pensions of the PSM employees. The federal government had paid PKR 35 billion on salaries of the closed PSM. The government had already decided to sack all employees of the PSM. In the first place, out of the total PSM’s workforce, 4544 employees have been laid off by PSM management by releasing PKR 11.012 billion. The successive governments have continued to pay the salaries and retirement benefits of the non-productive workforce of the Mill. Pakistan government has recently announced to run PSM through Public-Private Partnership to revive the Mill.

In 2006, Prime Minister Shaukat Aziz decided to integrate the steel mills under the intensified programme, called the Privatization Programme. The consortium involving Saudi Arabia based Al Tuwairqi Group of Companies submitted a winning bid of USD 362 million for a 75% stake in Pakistan Steel Mills at an open auction held in Islamabad. The consortium including the Magnitogorsk Iron and Steel Works of Russia, the al-Tuwairqi Group of Companies of Saudi Arabia and the Arif Habib Securities of Pakistan paid a total PKR 21.6 billion (USD 362 million) to take control. The entire privatization programme of prime minister Shaukat Aziz came to halt when WATAN PARTY filed a petition in the Supreme Court against the privatization citing irregularities in the process which was accepted by the Chief Justice of Pakistan Justice Iftikhar Chaudry. The Supreme Court on 8 August 2006 held that the entire disinvestment process of the Pakistan Steel Mills reflected haste, ignoring profitability aspect and assets of the mills by the financial adviser before its evaluation. On 23 June, a nine-member bench of the Supreme Court had annulled the sale. It had declared the USD 362 million transactions as null and void. In 2011, the steel mill was put under the management of government-ownership

Headquartered in Karachi in Sindh, PSM is reported to have name plate capacity of about1.1 million tonnes. It was built with extensive contributions from the Soviet Union in the 1970s. PSM is spread out over an area of 7,550 hectares including 4,205 hectares for the main plant, 3,266 hectares for the township and 81 hectares for the 110 MG water reservoir. In addition it has leasehold rights over an area of 3,043 hectares for the quarries of limestone and dolomite in the Makli and Jhimpir areas of Thatta district.

Source - Strategic Research Institute
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