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OMK Belgorod Supplies Steel Structures for Luzhniki Sports Complex

Russian pipe maker United Metallurgical Company OML’s Belgorod Power Engineering Plant has manufactured and supplied over 1.4 thousand tonnes of metal structures for the international Sambo & Boxing Center under construction on the territory of the Luzhniki Olympic sports complex in Moscow. Most of the order consisted of high quality carbon structural steel roof trusses and framing elements, purlins. In the frame of the building, metal girders are a reinforcing sub-rafter structure, which additionally takes on climatic, wind and snow, loads, evenly distributing them from the roof to the supporting and rafter structures. In addition to the high reliability of the manufactured products, the Belgorod plant OMK provided the customer with savings in time and money for installation due to the complete convergence of structures, having carried out an enlarged assembly of each truss on its territory.

The International Sambo & Boxing Center of the Olympic Sports Complex Luzhniki is a unique martial arts palace that has no analogues in the world, in which functionally two sports grounds will be located under one roof, the Sambo Center and the Boxing Center. Sports facilities meet all international requirements and are designed for year-round training and competitive activities in these sports. The total area of the seven-storey building with parking will be 45 thousand square meters.

Belgorod steel structures were used in the construction of the country's leading sports facilities including football stadiums in Saransk and Rostov-on-Don for the 2018 World Cup, four of the six largest facilities for the 2014 Olympic Games in Sochi the Big Ice Arena for ice hockey, a skating center Adler-Arena, the central Olympic stadium Fisht, the main Olympic media center and many others.

Source - Strategic Research Institute
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(Trivano.com) - Op 1 april 2021 hebben de analisten van J.P. Morgan hun beleggingsadvies voor ArcelorMittal (MT; ISIN: LU1598757687) herhaald. Het advies van J.P. Morgan voor ArcelorMittal blijft "overweight".
De analisten behouden hun koersdoel van 26,50 EUR.
Op 11 februari 2021 publiceerde ArcelorMittal zijn jaarresultaten.

www.trivano.com/aandeel/advies-jp-mor...
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Mr Gupta Enlists a Barrage of Lawyers to Defend Business

Financial Mail reported on Sunday that Mr Sanjeev Gupta has drafted in a barrage of lawyers to defend his steel empire as a crisis at its biggest lender threatens to engulf him. Mr Gupta, who last week admitted that he owes billions, has delivered a pugilistic response, saying from his home in Dubai “We have our legal defences ready. There is a barrage of lawyers who are readying up all their guns to fight this off. Lenders risked hurting their own interests by calling in loans before the financing was complete. Damaging the business is not in the interest of anybody, especially not the lenders. What they are doing is not logical and the arguments were made to them very robustly that they are damaging their own stakeholders, their own recovery prospects.'

Supply chain finance firm Greensill fell into administration last month. Mr Gupta has been scrambling to refinance the billions Liberty Steel owed Greensill.

Credit Suisse, the Swiss bank that provided USD 10 billion in funding to Greensill, has petitioned a winding-up order on GFG's commodities trading business Liberty Commodities last week. Citigroup, acting on behalf of Credit Suisse, began the action in London's insolvency court to recoup unpaid debts from Mr Gupta's GFG Alliance. Lenders such as Credit Suisse can apply to a court and ask it to close a company that owes them money. To be successful, it has to show that the company cannot pay what it owes.

Liberty Commodities is one of the main units of Mr Gupta’s metals trading arm and specialises in trading non-ferrous metals and steel. It had revenues of USD 4.2 billion in the year to March 2020 and 13 employees. Before venturing into metals manufacturing, Mr Gupta made his first fortune from commodities trading.

There are worries similar action could be taken against other companies owned by Mr Gupta. Industry sources believe three or four companies have been targeted with court action and that an application to wind up Liberty’s Specialty Steel division in Rotherham could be next.

Source - Strategic Research Institute
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Climate Groups Calls for Closer of CSC BF in Kaohsiung

The Taipei Times reported that environmental protection groups in Kaohsiung protested against air pollution and global warming, urging the local and central governments to pay attention to the effects of air pollution on people’s health in southern Taiwan. The groups demanded that the coal-fired Singda Power Plant in Kaohsiung be closed, China Steel Corporation to close one blast furnace and the threshold for air pollution emergency response measures be lowered.

South Taiwan Air Clear spokesman Lee Chien-cheng said that “The average life expectancy of Kaohsiung residents is the lowest among the nation’s six special municipalities. The city’s infant mortality rate and lung adenocarcinoma incidence rate in the past 10 years were the highest among the six special municipalities.”

Source - Strategic Research Institute
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Pakistan Asks China to Bid for PSM

The Express Tribune reported that Pakistan last week urged China to take part in competitive bidding for buying Pakistan Steel Mills and reiterated its earlier decision of excluding the closed industrial unit from the China-Pakistan Economic Corridor framework. The issue of selling the country’s largest industrial unit to China under a government-to-government deal was discussed during a meeting between Finance Minister Mr Hammad Azhar and Chinese Ambassador Mr Nong Rong.

During the 9th Joint Cooperation Committee of CPEC meeting, Pakistan had given an understanding to China that it wanted to include PSM in the CPEC framework. Projects that are executed under the CPEC framework are not open to all international investors and only Chinese investors can participate in the bidding process. However, over a year ago the government decided to keep PSM outside of the CPEC framework based on input from the then finance adviser Mr Abdul Hafeez Shaikh.

However, The News reported that without disclosing the names, Pakistan’s Minister for Planning, Development and Special Initiatives Mr Asad Umar said PSM will be functional in the future as four companies have shown interest to run it.

Source - Strategic Research Institute
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RWE Delivers LNG Cargo on Carbon Neutral Basis to POSCO

Through close co-operation RWE has arranged the delivery of a carbon offset cargo for its customer POSCO end of March. The cargo was delivered to the Gwangyang Terminal in South Korea. Under the agreement between RWE and POSCO, carbon emissions associated with the LNG cargo from wellhead to delivery, including exploration, production and transport, have been offset. This is achieved through the retirement of a corresponding amount of carbon credits, so called Verified Emissions Reductions certificates. High quality carbon credits have been sourced and independently certified under the internationally recognised Gold Standard, which adheres to strict environmental and social principles, and will be retired in order to compensate for the associated CO2 emissions of producing and delivering the cargo to Korea.

The carbon emission intensity of the cargo delivery was estimated using the Wood Mackenzie LNG Emissions Tool. RWE is now able to provide all its customers with the opportunity to offset carbon emissions related to LNG deliveries through the use of emission reduction certificates.

Source - Strategic Research Institute
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SAIL BSL Sets New Records in FY 2020-21

Steel Authority of India Limited’s Bokaro Steel Plant overcame unprecedented challenges and hurdles posed by the Covid-19 pandemic to set several new records in 2020-21. In 2020-21, BSL registered a growth of 2.6% in production of HR Plate and HR Sheet compared with 2019-20 and a 1.5% increase in the production of CR Saleable from CRM-3. The fiscal year also proved to be a good year in terms of performance in Despatch and Techno-Economic indices. With the addition of some new facilities, the plant also upgraded its production processes last year.

BSL COC Mr Manikant Dhan said “2020-21 was also remarkable in terms of progress & stabilization in the new facilities in the plant including installation of caster in the new SMS, commissioning of zero liquid discharge facility in CRM-3, commissioning of second stream along with alternating network line of coke oven gas line etc.

In the financial year 2020-21, BSL exported more than three lakh tonnes of steel to several countries including China.

Source - Strategic Research Institute
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Fire Breaks Out at SAIL RSP SMS 2 Control Room

Kalinga TV reported that a fire broke out in Steel Authority of India Limited’s Rourkela Steel Plant. According to reports, the fire caught in the control room of the Steel Melting Shop 2 around 3 AM in the night. Many items including computer systems in the control room have been burnt into ashes. On getting the information, the local fire fighters immediately arrived at the steel plant to douse the flames. Till the last reports came in, no casualty has been reported.

The steel plant officials have arrived at the spot to further look into the matter and a four-member committee has been set up to ascertain the cause of the fire.

Source - Strategic Research Institute
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NLMK Launches Online Platform for Sale of Slabs

Russian steel maker NLMK Group has launched an online platform for the sale of slabs - NLMK Slab Shop. The service, unique for the global metallurgical market, will allow customers to purchase slabs in small volumes from 60 tonnes. NLMK Slab Shop is an aggregator of orders for small quantities, from 60 to 2,400 tonnes. Orders with the same parameters are combined into a single lot for placement in NLMK production. Each client of the service can form an application for any assortment of the required volume or join an already created request. The new service of NLMK Group will allow our customers to purchase steel for further processing quickly and conveniently: no prepayment is required to complete an application, the transaction is negotiated promptly.

Manufacturers of flat products often need small volumes of semi-finished steel products from special steel grades. It is difficult to meet these needs in the product market due to technical restrictions on the minimum serial production, so rolled products manufacturers are forced to use less efficient solutions: produce on their own or place orders for excess volumes.

Source - Strategic Research Institute
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US to Impose AD Duty on Seamless Pipe imports from Czech Republic

The United States International Trade Commission has determined that US industry is materially injured by reason of imports of seamless carbon and alloy steel standard, line, and pressure pipe from Czechia that the US Department of Commerce has determined are sold in the United States at less than fair value. As a result of the Commission’s affirmative determination, Commerce will issue an antidumping duty order on imports of this product from Czechia.

Product Description: Seamless carbon and alloy steel (other than stainless steel) pipes and redraw hollows, less than or equal to 16 inches (406.4 mm) in nominal outside diameter, regardless of wall-thickness, manufacturing process (e.g., hot finished or cold-drawn), end finish (e.g., plain end, beveled end, upset end, threaded, or threaded and coupled), or surface finish (e.g., bare, lacquered or coated). Redraw hollows are any unfinished carbon or alloy steel (other than stainless steel) pipe or "hollow profiles" suitable for cold finishing operations, such as cold drawing, to meet American Society for Testing and Materials or American Petroleum Institute specifications, or comparable specifications.

Status of Proceedings:

1. Type of investigation: Final antidumping duty investigation.

2. Petitioners: Vallourec Star, LP, Houston, TX.

3. USITC Institution Date: Wednesday, July 8, 2020.

4. USITC Hearing Date: Thursday, March 4, 2021.

5. USITC Vote Date: Thursday, April 1, 2021.

6. USITC Notification to Commerce Date: Monday, April 19, 2021.

Source - Strategic Research Institute
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Mechel BZF Increases Sales of Ferroalloys in February

Mechel’s Bratsk Ferroalloy Plant increased the sale of ferroalloys in February 2021 by 19% compared to the same period last year. Sales of both grades of ferrosilicon produced by the plant increased: FS65 (with a silicon content of 65%) - by 10%, FS75 (with a silicon content of 75%) - by 28%. Finished products FS65 and FS75 were shipped to domestic metallurgical enterprises (including enterprises of the Mechel Group) and abroad (Japan, Mexico, Canada, Turkey). The increase in sales is due to the high demand for BZF products, which are used in metallurgical production to improve the properties of high-strength types of steel.

BFG has managed to diversify the geography of shipments, start deliveries to Turkey, Mexico & Canada

Mechel’s Bratsk Ferroalloy Plant increased the sale of ferroalloys in February 2021 by 19% compared to the same period last year. Sales of both grades of ferrosilicon produced by the plant increased: FS65 (with a silicon content of 65%) - by 10%, FS75 (with a silicon content of 75%) - by 28%. Finished products FS65 and FS75 were shipped to domestic metallurgical enterprises (including enterprises of the Mechel Group) and abroad (Japan, Mexico, Canada, Turkey). The increase in sales is due to the high demand for BZF products, which are used in metallurgical production to improve the properties of high-strength types of steel.

BFG has managed to diversify the geography of shipments, start deliveries to Turkey, Mexico & Canada
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Canada Starts Investigation on Steel Grating Imports from China

Canadian International Trade Tribunal has initiated an expiry review of its order made on April 18, 2016 concerning the dumping and subsidizing of certain steel grating originating in or exported from the People's Republic of China on March 29, 2021. As a result of the CITT’s expiry review, the Canada Border Services Agency has initiated an expiry review investigation to determine whether the expiry of the order is likely to result in the continuation or resumption of dumping and/or subsidizing of the subject goods. The CBSA will make a determination no later than August 26, 2021, and will issue a Statement of Reasons by September 9, 2021. The subject goods are Carbon steel bar grating and alloy steel bar grating, consisting of load-bearing pieces and cross pieces, produced as standard grating or heavy-duty grating, in panel form, whether galvanized, painted, coated, clad or plated, originating in or exported from the People's Republic of China.

Exclusions

1. Expanded metal grating comprised of a single piece or coil of sheet or thin plate steel that has been slit and expanded and not consisting of welding or joining of multiple pieces of steel

2. Plank-type safety grating comprised of a single piece or coil of sheet or thin plate steel, typically in thickness of 10 to 18 gauge, pierced and cold formed and without welding or joining of multiple pieces of steel

The subject goods are usually classified under the following tariff classification numbers 7308.90.00.10, 7308.90.00.20, 7308.90.00.30, 7308.90.00.40, 7308.90.00.50, 7308.90.00.60, 7308.90.00.95, 7308.90.00.96, 7308.90.00.99.

Source - Strategic Research Institute
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Nippon Steel Bags Derwent Top 100 Global Innovator 2021 Award

Nippon Steel Corporation was recognized as one of the world’s top 100 innovators and received the “Derwent Top 100 Global Innovator 2021 Award" for the 9th consecutive year. The award denotes being recognized as one of the world’s most innovative companies and institutions by analysis of the trend in intellectual property and patents, based on the patent data owned by Clarivate Analytics

This award, now in its 10th year, gives recognition to the world’s most innovative companies and institutions which have protected and commercialized unique innovative achievements as intellectual property. Of the world’s top 100 innovators, 29 are Japanese companies. Among them, Nippon Steel is the only steel company in the world given an award for the 9th consecutive year, from 2013.

Source - Strategic Research Institute
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Hoa Phat to Import 7.5 Million Tonne of Iron Ore & Coal in 2021

In 2021, Hoa Phat will import nearly 2 billion USD of machinery, equipment and raw materials for production, of which the Australian market alone accounts for 35% of the total import value. According to the Australian Embassy in Vietnam, data from Global Trade Atlas, the total export turnover of Australia to Vietnam in 2020 is 4.4 billion USD, of which Hoa Phat reaches 705 million USD, accounting for 16%. The total value of imports from the Australian market of Hoa Phat will increase by 1.2 and 2 times in 2019 and 2020, respectively, to USD 325 million and USD 705 million. It is expected that by 2021, Hoa Phat will import from Australia 4 million tonnes of ore, 3.5 million tonnes of coal of all kinds, and 145,000 cows. With the current price level, import turnover from Australia is estimated at USD 1.44 billion, more than 2 times higher than 2020.

In terms of export value, by 2020, the Group will reach a turnover of more than USD 1 billion. The proportion of exports in the revenue of Hoa Phat 2020 will be 26%. Asian countries contribute 90% of the Group's export value. In which, the export of construction steel and high quality steel is 966 million USD, accounting for 95.2% of the export value. The rest is the contribution of other products such as steel pipes, colored galvanized steel sheet.

Source - Strategic Research Institute
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Mechel Chelyabinsk Metallurgical Plant Increases Sales in Jan-Feb

Mechel Group’s Chelyabinsk Metallurgical Plant increased sales of rail and structural steel products in January-February 2021 compared to the same period in 2020. Sales of rail products in January-February increased by 84% compared to the same period last year. The growth was achieved thanks to the previously concluded export contracts for the supply of rails to Kazakhstan, Uzbekistan, Belarus, as well as industrial enterprises of the country.

Sales of structural steel girders (I-beams) increased by 16%. Sales of structural shapes: racks, channels, angles, profiles of various modifications - increased by 44%. These products are supplied to railcar building and mining enterprises.

Source - Strategic Research Institute
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BaoSteel Develops CRNO Silicon Steel for Research Project in China

After nearly a year of research and development, Baosteel Co Ltd developed special grades of non-oriented silicon steel for the Chinese Academy of Sciences' high energy synchrotron radiation light source project. It has been produced in Qingshan base and sent to user. The development and production of this series of non-oriented silicon steel lays a solid foundation for the high-quality completion of the second phase of the high-energy synchrotron radiation light source project

The project is one of the ten major scientific and technological infrastructures that the Institute of High Energy Physics of the Chinese Academy of Sciences has undertaken. After completion, it will be the first high-energy synchrotron radiation light source in my country and the world One of the brightest fourth-generation synchrotron radiation light sources. The storage ring magnet processing in this project has extremely strict technical requirements for the fine non-oriented silicon steel used.

The Qingshan Base of Baosteel Co Ltd is the earliest steel plant in China to develop and produce silicon steel. Over the years, it has accumulated rich experience in the research and development and production of non-oriented silicon steel. Since the 1980s, the Institute of High Energy Physics of the Chinese Academy of Sciences has worked with Qingshan Base to improve and develop special grades of non-oriented silicon steel sheets when constructing the Beijing Positron Collider Project, and jointly developed non-oriented silicon steel products with advanced technology.

Source - Strategic Research Institute
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Mechel Uralkuz Increases Sales of Railway Axles

Mechel Group’s Uralskaya Kuznitsa plant is increasing sales of stampings of railway axles for carriage-building and car-repair plants. Axle product sales in February 2021 were up 39% year-on-year.

Uralkuz has been producing products for railway transport since 1995, today the company manufactures various types of locomotive and carriage axles in a serial way. The production of these products is certified for compliance with the requirements of the Technical Regulations of the Customs Union and European TSI standards. Uralkuz occupies one of the leading positions in the domestic roughing axle market.

Source - Strategic Research Institute
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Chinese Companies Sign MoU to Explore Iron Ore in Algeria

Chinese media reported that a consortium of three Chinese companies, composed of Metallurgacal Corporation of China, China International Water and Electric Corporation and Hunan Heyday Solar Corporation, signed a memorandum of understanding with Algerian National Iron and Steel Company on exploiting iron ore in Algiers. The Chinese consortium will carry out a feasibility study on the exploitation of Gara Djebilet iron ore in western Algeria.

The Gâra Djebilet mine is a large iron mine located in western Algeria in the Tindouf Province. Gâra Djebilet represents one of the largest iron ore reserves in Algeria and in the world having estimated reserves of 1.7 billion tonnes of ore grading 30% iron metal.

Source - Strategic Research Institute
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Investors Press POSCO to Stop Business with Myanmar Military

Australian Financial Review reported that investors are urging South Korean industrial group Posco to exit a steel joint venture with a Myanmar military-controlled conglomerate as pressure builds on multinationals to cut financial links with Myanmar’s junta. Dutch pension fund APG is among a group of investors worried their holdings in Seoul-listed Posco would undermine responsible investing commitments after Myanmar’s military overthrew Ms Aung San Suu Kyi’s government in a coup in February. They pointed to Japan’s Kirin, which announced it would pull out of its two brewery joint ventures with a Myanmar military-owned company during the week of the coup, as an example to heap pressure on Posco. APG adviser Ms Park Yoo-kyung said “The military is killing people every single day. A lot of investors are engaging with the campaign at Posco.”

An influential campaign group Justice for Myanmar, has pushed for APG as well as PGGM, a second Dutch pension fund, to shed USD 2.3 billion in combined equity stakes linked to businesses in the crisis-hit country.

The US and the UK have imposed sanctions against MEHL and Myanmar Economic Corporation, another military conglomerate with extensive holdings in a number of sectors, further complicating the picture for companies with links to the groups.

The Korea Metal Workers' Union posted about 20 banners around POSCO’s Gwangyang Steelworks on March 18 calling for the suspension of economic cooperation between POSCO and Myanmar's military government.

Calls for foreign groups to divest from Myanmar mounted in the wake of the military’s 2017 deadly crackdown on Rohingya Muslims in the country’s western Rakhine state. But they have intensified since the February coup. According to human rights groups, General Min Aung Hlaing’s security forces have killed more than 500 civilians, including children, and arrested almost 2700, including former officials and protesters.

POSCO has been conducting several joint ventures with Myanmar Economic Holdings Limited, the economic foundation of Myanmar's military, through subsidiaries such as POSCO Coated & Color, POSCO International and POSCO E&C. POSCO C&C set up two joint ventures with MEHL and POSCO International and POSCO E&C own more than a 5% stake in the Yangon Lotte Hotel Project, which is promoted on a military owned site. Also Shwe natural gas project is being developed in a three-phase scheme by a consortium of six companies, led by POSCO subsidiary Daewoo International. The consortium includes POSCO Daewoo International 51% operator, Oil and Natural Gas Corporation Videsh 17%, Myanmar Oil and Gas Enterprise 15%, Gas Authority of India 8.5% and Korean Gas Corporation 8.5%.

Now according to a latest report in Reuters, POSCO has begun reviewing how it might end a joint venture with Myanmar Economic Holdings Limited. Sources told Reuters that POSCO C&C is looking into either selling its 70% stake in the venture or buying out its partner's stake. But the people with knowledge of the matter say POSCO is wary of an abrupt steel exit because it could potentially jeopardise hundreds of millions of dollars earned from more lucrative gas projects operated jointly with another Myanmar state firm by an affiliate, Posco International.

Sweden's public pension fund, which owns POSCO shares, told Reuters it has quizzed the company over its Myanmar investments as it is concerned about human rights issues in the country. Meanwhile Nordic investor Nordea told the Swedish arm of the Fair Finance network, initiated by Oxfam, that it had put POSCO in quarantine until further notice regarding its Myanmar plans.

Source - Strategic Research Institute
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Chinese Steel Mills Need to Move Now to Attain Carbon Goals

According to analysts, China’s steel mills can meet their goal of reducing carbon emissions if the industry is willing to accept the high cost of improving the efficiency of production. Beijing based Institute of Public and Environmental Affairs Director Ma Jun told South China Morning Post “Slashing carbon emissions is a must for the steel industry. For an industry with such sizable emission, it needs to make a move right now. The steel industry is consuming much more energy than others, so it will need to upgrade new capacity that consumes less and renewable energy.”

Paulson Institute’s senior research associate Ilaria Mazzocco said “Among other things, the industry is likely going to have to rely on technologies that are not fully mature or entirely commercially viable at the moment. This implies a bit of a bet on the part of the government and the industry, but if it pays off it could actually help commercialise these technologies.”

As the largest crude steel producer and consumer, China’s steel accounts for about 15% of the country’s carbon emissions and over 60% of the global steel industry’s emissions. Steel companies in China are under pressure now Beijing has fully committed to achieving carbon neutrality by 2050. The country is carving out a plan for the steel industry to hit peak carbon emissions within four years and reduce them by 30% by 2030. Currently, 90% of China’s steelmaking relies on coking coal blast furnaces. As part of efforts to ensure the industry’s 2025 peak-carbon goal is reached, the country has stressed its desire to reduce both capacity and output this year. It has launched a nationwide investigation to make sure steel capacity cuts ordered in 2016 to eliminate out dated and excess capacity are actually being carried out

As the largest steel producer in the world, Shanghai-based China Baowu Steel Group said it will reach carbon emission peak by 2023 and will reduce emissions by 30% before 2035. The steel maker is also investing in innovative technologies to ramp up production. It has formed a five-year partnership with BHP to invest up to USD 35 million in greenhouse gas emissions research, including the deployment of carbon capture and hydrogen injection in the blast furnace.

Source - Strategic Research Institute
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