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Baowu Leads the Chinese Steel Sector Decarbonization Drive

Strategic Research Institute
Published on :
24 Nov, 2022, 5:21 am

Baowu actively implements the spirit of the important instructions of General Secretary Mr Xi Jinping and acts as the leader of the new low-carbon metallurgical modern industrial chain. Baowu has established a new type of metallurgical industry chain composed of well-known experts such as academicians, professors, and corporate executives from major scientific research institutions, universities, associations, and related companies.

The inaugural meeting and first meeting of the expert advisory committee for the construction of the new low-carbon metallurgical modern industrial chain in China was held at BaoSteel on 16 November with 9 participants from Chinese Academy of Engineering and 14 industry experts from professional fields such as clean energy, metallurgical technology, smart manufacturing, and industrial economics. Baowu’s Chairman Chen Mr Derong attended the meeting and delivered a speech.

Representatives from Northeastern University, Beijing University of Science & Technology, Shanghai Jiaotong University, Shanghai University, Central South University, Tongji University, Fudan University, China Iron & Steel Industry Association, China Metal Society, China Iron & Steel Research Institute, Anshan Iron and Steel Group, Hegang Group and Shagang Group also attended the meeting

Low-carbon metallurgical modern industrial chain construction expert advisory committee, as a high-end think tank force supporting the construction of the chain length, will become the navigator to grasp the development direction of the modern industrial chain, and actively provide advice and suggestions for major decisions in the construction of the chain length.

It is hoped that the experts can contribute ideas and enlighten wisdom around the aspects of performing their duties in the industry chain, creating the source of original technology, building the core chain, improving the coordination mechanism of the industry chain, grasping the frontier development trend, and preventing major risks in the industry chain, so as to contribute to the joint construction of the common cause Governance and sharing of the new low-carbon metallurgical modern industrial chain work together and struggle together!
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Sunflag Iron & Steel Gets Mining Lease for Bajna Iron Ore Block

Strategic Research Institute
Published on :
24 Nov, 2022, 5:21 am

India’s leading special steelmaker Sunflag Iron & Steel has received on 21 November a Letter of Intent from Mineral Resource Department, Government of Madhya Pradesh for grant of mining lease to the Company for Bajna Iron Ore Block for Iron Ore and Manganese Ore in Bajna Village, Baxwaha Taluka in Chhatarpur District on 96 0 Hectare Area for a period of 50 years.

Sunflag Iron & Steel shall be designated as the 'Successful Bidder’ and subsequently granted the mining lease only upon satisfactory completion of all the requirements under the Act and the Rules made there under.

Sunflag ventured into steel sector in 1989 with setting up of an integrated steel plant at Bhandara near Nagpur using state of art technology in steel making. Today Sunflag operates a 0.5 million tonnes per annum capacity plant manufacturing high quality steel products including a wide range of special alloy and stainless steels.
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Salzgitter & EnBW Ink He Dreiht Offshore Wind Energy Pact

Strategic Research Institute
Published on :
24 Nov, 2022, 5:22 am

European energy supplier EnBW and German steelmaker Salzgitter Flachstahl have now concluded a long-term electricity supply contract. The power is to come from the planned offshore wind farm He Dreiht in the North Sea.

With this Power Purchase Agreement, Salzgitter Flachstahl has secured the supply of 50 megawatts of green electricity from the new 900 MW wind farm about 90 kilometers north of the island of Borkum for 15 years, which will go into operation at the end of 2025 target. Green hydrogen generated with sustainably produced energy is a core element for the production of almost SALCOS CO2 free steel.

Salzgitter Group is already a partner for the generation of renewable energies. For example, Ilsenburger Grobblech, a full-range supplier, has been supplying heavy plates for the onshore wind energy industry since 1996 and increasingly for the offshore market since 2010. Other products of the group for wind turbines include HFI longitudinally welded steel tubes, precision steel tubes for the nacelle and large-diameter tubes for the substructures of offshore wind farms.
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BaoSteel & Beijing Benz Sign MoU for Green Automotive Steel

Strategic Research Institute
Published on :
24 Nov, 2022, 5:23 am

Chinese steel giant BaoSteel and automaker Beijing Benz Automotive have inked a memorandum of cooperation on green steel supply chain jointly promote the application of cleaner raw materials in the manufacturing process of complete vehicles and build a green automotive steel supply chain. Under the MoU, Beijing Benz Automotive will start using low-carbon steels from 2023 and aims to gradually decrease the carbon emissions from automotive steel by 50%-80% from 2026 through the technical route of hydrogen-based shaft furnace plus electric furnace.

Besides, the green steel, which targets a carbon emission decrease by 95% over the existing steel, will be used by the joint venture in the future.

Both parties believe that the new MoU signing will help them improve their production and operation mechanisms, and lift carbon emission reduction efficiency.

BaoSteel plans to put its hydrogen-based shaft furnace into operation in 2023, which will further lower carbon emissions amid the manufacturing process.
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EU Proposes Fixed Gas Price Caps at EUR 275

Strategic Research Institute
Published on :
24 Nov, 2022, 5:23 am

The EU Commission is proposing a market correction mechanism for the gas trading market limited to one year. This would automatically take effect from January 2023 if the Amsterdam benchmark index TTF exceeded the threshold of EUR 275 per megawatt hour for two weeks and at the same time was at least EUR 58 above the European price of liquefied natural gas. The price cap should only apply to contracts relating to deliveries agreed one month in advance. Trade over short-term or longer periods is not affected. EC’s Energy Commissioner Ms Kadri Simson said that this is not a regulatory7 intervention to set the price on the gas market at an artificially low level; rather, it is a last resort solution to prevent episodes of excessively high prices which are not in line with global price trends. She added “This is not a silver bullet that mil bring gas prices down. But it provides a powerful tool that we can use when we need it, complementing our more structural efforts to lower prices, namely by controlling our demand and ensuring sufficient gas supply for Europe through joint purchasing and active external energy policy.”

The proposals will be debated by energy ministers from the bloc's 27 member countries on 24 November.

However, the Association of European Energy7 Exchanges said that the mechanism poses a serious threat to the region's security of supply and financial stability, and will do little to achieve the goal of lowering energy costs.

The introduction of an electricity and gas price cap has been discussed in the EU for months, but this instrument has not yet been decided. Belgium, Greece, Italy and Poland would threaten to block other energy laws if the EU Commission does not propose a price cap for gas. The topic will probably be discussed again at the next meeting of energy ministers on 24 November in Brussels.

The mechanism could temporarily contain price spikes. In principle, the EU Commission considers the proposals presented in October to reduce prices, such as joint gas purchasing and the acceleration of approval procedures for the expansion of renewable energies, to be more suitable.
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UK’s Iconic Redcar Blast Furnace at Teesside Bites the Dust

Strategic Research Institute
Published on :
24 Nov, 2022, 5:24 am

The iconic Redcar Blast Furnace which formed part of Teesside's steel heritage in was brought down on 23 November 2022 marking an end of an era for Teesside steelmaking. Built in 1979, the blast furnace stood 365 feet tall and was ranked the second largest of its kind in Europe.

Casting houses, the dust catcher, charge conveyors, and the blast furnace itself was among structures to come down. The demolition was carried out by Thompsons of Prudhoe using 175kg of explosives and involving months of preparation. A 250-metre exclusion zone was put in place for the blast, which could be heard in areas more than 32km from the area.

It was built during the time of state-owned British Steel which was privatized in the 1980s. It then came under the ownership of Corus, which was formed for a merger of British Steel and Dutch firm Koninklijke Hoogovens. It was mothballed in 2010 under the ownership of Tata Steel but a deal to save it was struck in a takeover with Thai firm SSI. However SSI collapsed in 2015 leading to the end of this form of Teesside steelmaking after 150 years.

In October 2022, the Basic Oxygen Steelmaking Plant in Redcar was also demolished.

The four enormous gas stoves which heated the furnace are set to be demolished separately in the coming weeks.
Bijlage:
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South Korean logistics strike to affect steel shipments
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The Cargo Truckers' Solidarity union is planning an indefinite strike from 24 November, which will likely cause another supply chain disruption in South Korea. It will first affect transportation in the Pohang area, Kallanish learns.

Posco's Pohang plant is already recovering from the impact of recent flooding, and the strike will further delay material and equipment shipments to the mill. Posco said on Tuesday it hopes to work with the union to access the vehicles needed to resume operations.

Hyundai Steel's Pohang plant is also concerned that the strike could disrupt logistics. It has shipped some of the emergency supplies needed by customers ahead of schedule. A Hyundai Steel source says: "We are reducing inventory as much as possible through pre-shipment."

If the strike is prolonged, it will have a negative impact on the steel industry. Since Posco's Pohang plant has not fully resumed operations, however, the impact on its shipments may be limited.

In June, an eight-day strike by South Korean truckers delayed cargo shipments of products ranging from autos to semiconductors in South Korea, costing more than $1.2 billion in lost output and unmet deliveries.

Kallanish Asia
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Research Shows Reduced Embrittlement in steels with Vanadium

Strategic Research Institute
Published on :
25 Nov, 2022, 5:24 am

Owing to rapid technological advancement, a global trend has emerged towards making steels stronger, tougher, increasingly wear resistant, and more ductile, and as a result better suited for use in continually evolving industrial and commercial applications. Advancements in the production of higher strength and higher performance steels therefore remain an area of active development for steel companies around the world. However, as we begin to produce higher and higher strength steels, a detrimental phenomenon known as hydrogen embrittlement will become increasingly significant.

Hydrogen embrittlement is a phenomenon that causes the deterioration of the mechanical properties of steel, such as ductility, resulting in the fracturing, cracking or failure of the steel over time. This results from the presence of hydrogen within the microstructure of the steel. Hydrogen can be introduced during steelmaking, during fabrication processes such as welding, and as a result of corrosion reactions, and can permeate solid steel in atomic form. Hydrogen embrittlement is more likely to occur in higher strength steels, so as steelmakers produce higher strength steels to meet customer demands, hydrogen embrittlement is likely to become a more significant problem.

Vanadium, typically used as a micro alloying agent to refine the grain structure of steel, and in turn increase the strength, toughness, and wear resistance of steel, has also been shown to improve the resistance of steel to hydrogen embrittlement. When vanadium is added, it forms microscopic-sized precipitates such as vanadium-rich carbides and nitrides within the microstructure of the steel, which then serve as an effective trapping site for the hydrogen that is present in the different locations within the microstructure of the steel.

Mining Review Africa reported that global organization to promote the use of vanadium bearing materials Vanitec said that research has been undertaken over several years to better understand how the effects of hydrogen embrittlement can be reduced or controlled. Research undertaken to date suggests that the addition of a small amount of vanadium into high strength steels can have beneficial effects in reducing hydrogen embrittlement in a number of situations.

Research to date has found that the addition of vanadium is able to reduce hydrogen embrittlement in aluminized ultra-high strength press hardening steels with tensile strengths between 1,800 and 2,000 MPa and that microalloying high manganese austenitic twinning-induced plasticity cold strips with vanadium and nitrogen provide increased resistance to delayed cracking.

When the hydrogen is trapped, although still present in the steel, it considerably reduces the negative impact of the hydrogen and improves the resistance to hydrogen embrittlement. It is only when the hydrogen is free to diffuse through the steel without being trapped that the hydrogen embrittlement phenomenon starts to occur. Another potential trapping site for hydrogen is within the grain boundaries, which are the disordered regions within the microstructure of steel, which attract and trap the hydrogen atoms. When the addition of vanadium reduces the grain size in steel, it in turn increases the hydrogen trapping potential of the steel and improves the resistance to hydrogen embrittlement.

While the hydrogen content in steel can be controlled at the production stage, hydrogen can also be introduced at later stages through welding, surface or heat treatments and corrosion. In these instances, it is advantageous to introduce trapping sites through vanadium additions to reduce the risk of hydrogen embrittlement.
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Malaysian Leform’s IPO Listing to Fund Expansion & CAPEX

Strategic Research Institute
Published on :
25 Nov, 2022, 5:25 am

Malaysian tube maker & steel processor Leform’s, which is en route to be listed on Bursa Malaysia's ACE Market on Nov 30, shares public under its initial public offering have been oversubscribed by 1.42 times. Leform received a total of 5,285 applications from the Malaysian public for 179.51 million shares. Upon listing, the company will have a market capitalisation of MYR 340.6 million, based on an enlarged share capital of 1.48 billion shares, at an issue price of 23 sen. Leform aims to raise MYR 71.5 million via the IPO exercise for expansion expenses, working capital, and repayment of bank borrowings.

Leform’s Managing Director Mr Law Kok Thye said “We are encouraged by the positive response received for our IPO. With the incoming proceeds, we are set to embark on our growth plans to expand our operations. Looking at the bigger picture, the roll-out of mega infrastructure projects, along with government initiatives to boost demand for residential properties, bodes well for the steel industry. This is further supported by rising demand for automotive vehicles and locally manufactured furniture. With that in mind, we plan to allocate a large portion of our IPO proceeds for the construction of a new headquarters, warehouse storage facilities and workers’ accommodation. The new facilities would boost the company's storage space capacity, thus allowing greater production output and, in turn, higher operational efficiency.”

Mr Law added "At the same time, we are also able to introduce a new product range of thicker gauge pipes to cater for diverse needs of our prospective and existing customers.”

Serendah Selangor based Leform was incorporated in Malaysia in 1995 as a private limited company, and was subsequently converted into a public limited company on 14 January 2022 to facilitate listing on the ACE Market. Leform is involved in the manufacturing of and trading in steel products like

Round Steel Pipes

Steel Hollow Sections

Oval & Ellipse Steel Pipes

Gate Channel, Trolley Track & U-Channel

Guardrails

Slitted Steel Coils
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Thailand Extends AD Duty on Tin Plate for 6 Months

Strategic Research Institute
Published on :
25 Nov, 2022, 5:25 am

Thailand’s Committee of Dumping & Subsidy has decided to extend the anti-dumping duty suspension period on tin-coated steel sheets in coils and non-coils from China, Taiwan, South Korea and the EU by another six months from the date of the announcement, unless otherwise specified by the Committee. The decision was based on the interests of domestic industries, consumers, and the public.

The products involved are tin-coated steel sheets, both in coil and non-coil, excluding tin-plated steel sheets and coils coated with lacquering, lamination, or printing.

The HS codes of these products are 7210.12.90.021, 7210.12.90.022, 7210.12.90.023, 7210.12.90.024, 7210.12.90.025, 7210.12.90.026, 7210.12.90.029, 7210.12.90.031, 7210.12.90.032, 7210.12.90.033, 7210.12.90.034, 7210.12.90.035, 7210.12.90.036, 7210.12.90.039, and 7210.12.90.090.
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Hoa Phat’s Dragon Resources to Buy Bramfield Iron Ore Project

Strategic Research Institute
Published on :
25 Nov, 2022, 5:25 am

Vietnamese steelmaker Hoa Phat’s subsidiary Dragon Resource Investment and Australian miner Oar Resources have concluded the purchase & sale of Bramfield iron ore project in South Australia for an all-cash settlement of AUD 440,000. The Bramfield Project is located 9 km from Elliston on Eyre Peninsula, approximately 170 km from Port Lincoln (via a sealed highway). A large magnetic anomaly measuring 2700 m in length and 500 m in width was initially considered to represent a mafic-ultramafic intrusive complex but it has been shown to be more diverse than this with BIFs and calc silicate horizons.

The parties have agreed to a slight discount on the originally agreed price of AUD 500,000 to conclude the sale in a timely manner as there were several delays in granting the new exploration license due to the pandemic and other factors.

The sale is subject to the successful excise of the exploration area comprising the Bramfield iron ore project by conditional surrender from the company's exploration Licence 6558, and the consequent issue to DRI of a new exploration licence covering the Bramfield iron ore project.

The Bramfield iron ore project had previously been written down by Oar Resources to nil value while the company refocused efforts on its critical minerals portfolio. Oar Resources Chief Executive Officer Mr Paul Stephen said “We are pleased to conclude the cash sale of this asset and bolster our cash position to further fund exploration of our core projects.”

Oar Resources is an explorer and aspiring producer, holding several critical and precious minerals projects. Recent acquisitions include 100% ownership of the Denchi Lithium Project near Wiluna in Western Australia; and 100% of Australian Precious Minerals, holder of the Crown Project in Chittering, Western Australia. Crown is situated near Chalice Mining's Julimar PGE-Ni-Cu-Co-Au discovery. Oar has also acquired 100% of Alpine Resources' gold exploration projects in the highly prospective gold province of Nevada in United.
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Moldovan’s Take Over 50% of Laminorul Danube Metallurgical

Strategic Research Institute
Published on :
25 Nov, 2022, 5:26 am

Romania Insider reported that a group of investors from the Republic of Moldova took over half of the capital of Laminorul Danube Metallurgical Enterprise, which owns and operates the steel pipe production unit in O?elu Rosu in Caras Severin county of Romania. Polish company Sunningwell International Polska has sold 49.09% of the shares of Laminorul Danube Metallurgical Enterprise to Omnisteel from the Republic of Moldova and 0.91% to Metary from Romania, being left with 50% of the shares.

Omnisteel is controlled by Moldovan businessmen Mr Valentin E?anu (35%) involved in scrap iron trading, Mr Andrei Zabolotnîi (35%) owner of the IT company Omnicom and Mr Alexandru Rotaru (30%). Mr Rotaru, who is also a sole partner at Metary, was appointed administrator at Laminorul Danube Metallurgical Enterprise, but an agreement with Sunningwell’s representative is needed for all decisions.

Sunningwell International Polska is founded, controlled and managed by Polish businessman Mr Marek Frydrych (99.09%), and the metallurgical products trader West Trade from Poland (0.91%).

The Romanian pipe maker Laminorul Danube Metallurgical Enterprise is incorporated in 2019, under the law of Romania to facilitate acquisition of assets as well as manage them in the territory of Romania. This company has already acquired Otelu Rostu Steel Plant in Romania, which previously belonged to Invest Nikarom. Otelu Rosu Steel Plant is the melting shop unit, which produces low, mid, high carbon and highly alloyed steel billets for further rolling of concrete reinforcement bars, wire and special steels. Designed production capacity is 850,000 tonnes per year liquid steel. The total area of land owned by Otelu Rosu plant is 85.3695 hectare.
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High Power Tariffs Spell Doom for Steel Units in Vidarbha

Strategic Research Institute
Published on :
25 Nov, 2022, 5:33 am

The Steel Manufacturers Association of Maharashtra has sought restoration of power subsidies first given by the Mr Devendra Fadnavis government in 2019 to boost the ailing sector in some parts of the state. In 2019, the then BJP-led government had started supply of power at Rs 5 per unit for steel units in Marathwada, Vidarbha and Khandesh, but this relief was withdrawn on 23 June 2022, SMAM President Mr Yogesh Mandhani said “This scrapping of subsidy led to a drastic fall in industrial growth and production. Now, neighbouring states like Chhattisgarh and Madhya Pradesh provide electricity at INR 5.25 per unit, while it is INR 8 per unit in Maharashtra.”

Nagpur’s Hitavada that as many as 36 steel manufacturing units have closed, 10 units migrated to other states & 6 units have cut production in Vidarbha, Marathwada and D+ zone in Maharashtra in last few years because of the high rates of power and that almost all the remaining steel units are struggling to survive

The report cited data from Vidarbha Industries Association as saying that the electricity tariff in Maharashtra is highest in the country which makes steel production in the state economically unviable. VIA said “The steel industry in Vidarbha and Marathwada areas are worst hit because of tough competition from neighboring states where cheaper tariff and industrial supportive policies are offered. The finished products from neighboring states like Madhya Pradesh, Chhattisgarh, Goa, Gujarat and even from Orrisa and Jharkhand are capturing the region’s market.”

These industries were offered some respite by providing Vidarbha and Marathwada subsidy scheme in 2019. The scheme was valid till 2024 but the incentive has been removed by the previous Government making it made difficult for steel manufacturers.
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Spain Grants Support to ArcelorMittal Spain for Green Steel

Strategic Research Institute
Published on :
25 Nov, 2022, 5:33 am

The Spanish government has awarded EUR 17.1 million to ArcelorMittal Spain within the compensation mechanism for indirect costs attributable to greenhouse gas emissions reflected in the price of electricity.

Spain’s Minister of Industry, Commerce & Tourism Ms Maria Reyes Maroto said “The competitiveness of the large industry is one of the priorities on the government’s agenda, in addition to guaranteeing a competitive energy price. This grant shows the government’s commitment to reinforcing the industrial capacities and employment of a key sector in Spain, at a time when it is necessary to increase the weight of the industry to accelerate the economic and social recovery.”

Total support for energy-intensive industry amounts to €244m, of which the steel sector has a 37.5% share and the aluminium industry 15%.

The aid is part of the Spanish energy support package for large industries, including compensation for electricity bill charges, intended to finance renewables and high-efficiency co-generation and direct aid to gas-intensive companies. The mechanism also aims to reduce 80% of the cost corresponding to access tolls for electricity transmission and distribution networks.
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Primetals & Tata Steel to Partner for Green Steel Transition

Strategic Research Institute
Published on :
25 Nov, 2022, 5:33 am

Primetals Technologies and Indian steel producer Tata Steel have signed a Memorandum of Understanding to intensify their collaboration on projects and technology related to green steel and decarbonization. Tata Steel is prioritizing decarbonization and is looking for solutions to achieve carbon neutrality by 2045. Tata Steel has partnered with Primetals Technologies as one of several steps being taken.

The market leader in environmental innovations for the metals industry, Primetals Technologies has an organization in place that is dedicated to green steel technology and the transformation of the steel industry. This organization extends to all of the company’s departments. Primetals Technologies will provide Tata Steel with engineering expertise as well as support in implementing green steel technology.

Primetals Technologies possesses both high engineering competence and proven solutions in, for example, the fields of decarbonization, reduction in emissions, greater energy efficiency, and improved circularity and yield. The green steel portfolio covers the entire iron and steel production chain: upstream, downstream, metallurgical services, and electrics and automation.
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High Logistics Costs Impacting Steel Export of Severstal

Strategic Research Institute
Published on :
25 Nov, 2022, 5:34 am

Russia’s leading steelmaker Severstal, amid challenges such as weaker domestic demand, a stronger ruble and logistics and trade restrictions this year has seen significant rise in logistic costs when exporting its products. Severstal’s Deputy General Director for Sales & Operations Mr Evgeny Chernyakov in an interview with Interfax said “Amid all the perturbations and absence of insurance, all international logistics companies left Russian ports, and tariffs and transshipment have risen sharply. This has hit us hard as prices have fallen in the international markets. Now things have improved, freight tariffs are more or less fine, and there are now flows. Of course, we have been forced to look for new markets, and this lengthens the distances. We didn’t have such problems in the past since we shipped our metal to Europe via St Petersburg. Then, to be honest, we did not depend so much on Russian Railways.”

He said “Now we are redirecting shipments to the south and the Far East, we have completed a shipment to the most remote region for us - to Sakhalin. Of course, it is interesting and important for us to increase the volume of deliveries to these destinations, but the increase in railway tariffs hurts the cost of our metal and, as a result, the ultimate price of products. The question arises - how do we change this situation? And the most obvious answer is to shift the costs to the end customer. But you need to understand that the domestic market is highly competitive. And, if we raise prices due to increased logistics costs, then this will hit our competitiveness.

He added “Of course, we will continue to develop alternative delivery methods: water and road transport, interaction with ports, customers, and so on. And, of course, we continue to hold dialogue on tariffs with Russian Railways.”

Mr Chernyakov while answering a question about sale of Neva-Metal stevedoring company due to changes in the company's logistics flows added “Over 30% of our sales were exports, and 90% of them were handled by Neva-Metal. Today, the share of exports has fallen by a third, even more. So it was logical to divest this business as the Baltic region is of no interest to Severstal in today’s realities. For us it is most relevant to have access to other destinations, for example we expect to increase shipments to CIS countries.”
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Acciaierie d’Italia Workers Strike for State Funds to Survive

Strategic Research Institute
Published on :
25 Nov, 2022, 5:34 am

According to reports in Italian media, Italy’s leading steelmaker Acciaierie d’Italia, formerly known as Ilva, had been engulfed in another workers’ strike this week. On 21 November, workers in Taranto went on strike for 24 hours and are planning more action to protest against the perceived lack of government support for the steelmaking joint venture. They are calling for swift state intervention to nationalize the steelmaker.

Reports quoted UILM union sources as saying that “In March, the company said it would ramp up output to 5.7 million tonnes; we are now at slightly over 3 million tonnes. The steelmaking plant in Taranto is only working with two blast furnaces while almost all finishing lines remain idle. Workers are asking the government to respect its initial commitment and inject cash into the company to make ArcelorMittal a minority shareholder, sources say.

Amid a liquidity crisis, Acciaierie d’Italia’s management recently decided to suspend its use of contractors. This, on top of almost 3,000 workers being temporarily laid off, is putting in doubt production continuity. The steelmaker is said not to be paying many of its debts.

Invitalia signed an agreement in May with joint venture partner ArcelorMittal to delay the completion of its acquisition of a majority stake in Acciaierie d’Italia. According to the 2020 agreement between the two parties, Invitalia invested the first tranche of EUR 400 million last year in AM InvestCo, the ArcelorMittal subsidiary that agreed to purchase the former Ilva plant. This provided Invitalia with joint control over AM InvestCo. The second tranche of up to EUR 680 million was due to be paid on the closing of AM InvestCo’s purchase of Ilva, the deadline for which was end-May 2022. This would have raised Invitalia’s shareholding in AM InvestCo to 60%, giving it control over Acciaierie d’Italia. The payment of the second tranche has however been postponed to 31 May 2024

In 2021, Acciaierie d’Italia posted turnover of EUR 3.3 billion, up from EIR 1.6 billion in 2020 with crude steel production of 4.1 million tonnes of crude steel, an increase from 3.4 million tonnes in 2020.
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Truckers Strike to Disrupt Steel Logistics Services in Korea

Strategic Research Institute
Published on :
25 Nov, 2022, 5:38 am

Yonhap reported that unionized truckers in South Korea have launched a nationwide strike, the second of its kind in less than six months, stoking worries over supply disruptions amid post-pandemic recovery efforts. More than 22,000 of 25,000 members of the Cargo Truckers Solidarity Union, under the wing of the Korean Confederation of Trade Unions, walked off the job and joined the strike. The organizers said they will start off by blocking the entries to major logistics hubs in the Seoul metropolitan area and other key regions, including Busan in the southeast and Gwangyang in the southwest. The truckers have demanded the government extend a freight rate system guaranteeing basic wages amid soaring fuel costs.

The strike is set to cause major supply disruptions in the auto, steel and refinery industries, forcing manufacturers to cut the daily output. Transport disruptions had already begun in a major industrial complex in Pohang, about 370 kilometers southeast of Seoul, where incoming and outgoing shipments were being delayed, including Hyundai Steel's 8,000-ton shipment of supply.

The latest walkout came about five months after the truckers staged an eight-day strike in June, which resulted in massive delays of cargo shipments, and other logistics and supply disruptions across the country.

Korean government vowed to take a zero-tolerance stance against the strike, warning of stronger action than the last time. Land Minister Mr Won Hee-ryong said the ministry will seek to issue an executive order to stop the strike as early as next week if the truckers do not return to work, insisting the government cannot accept the truckers' demand. A trucker who does not comply with the executive order can face imprisonment of up to three years or KWR 30 million (USD 22,500) in fine.
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ArcelorMittal Kryvyi Rih Halts Steel Production over Power Outage

Strategic Research Institute
Published on :
25 Nov, 2022, 5:38 am

Ukrainian steelmaker ArcelorMittal Kryvyi Rih has suspended most production processes due to Russia's massive missile attack on energy infrastructure on 23 November, which resulted in an electricity shortage in Ukraine. ArcelorMittal Kryvyi Rih said “The available electricity volumes are not sufficient to support production, even at the level of 20% of capacity. ArcelorMittal Kryvyi Rih has temporarily halted the production of steel and rolled products. At this time, the coke oven batteries No. 5, 6 continue to operate, two more coke oven batteries No. 3, 4 and the blast furnace No 6 are in the keep-warm mode. Both the company’s quarry and the GOK plant are de-energized. It will return to normal operation as soon as the specialists manage to restore the energy infrastructure of Ukraine.”

Ukrainian electricity transmission company Ukrenergo said “As of 7 PM, electricity producers covered about 50% of consumption needs in the country. A considerable amount of thermal power plants and hydroelectric power plants are already operating, and all nuclear power plants, except for the Zaporozhye NPP, are gradually gaining power," Ukrainian media outlets said, citing information posted on Ukrenergo's social networks on Thursday evening.”

The company explained the power shortage by the fact that the nuclear power plants producing half of electricity for the country are returning to operations as slowly as it is technologically necessary after the forced shutdown.

Russia launched the first massive missile attack on the territory of Ukraine on 10 November. As a result of the shelling, approximately 70 facilities were damaged, 29 of which were critical infrastructure facilities. On November 15, the Russians launched another massive attack on energy facilities. The attack on the energy system is the largest since the beginning of Russian aggression. As a result of a massive rocket attack by the Russian Federation on November 23, Ukraine’s energy infrastructure facilities have been damaged, emergency shutdowns are in place in all regions, and electricity has been cut off in many settlements since yesterday.
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India’s Finance Ministry Turns Down Steel Inclusion in RoDTEP

Strategic Research Institute
Published on :
25 Nov, 2022, 5:38 am

Media reports suggest that India’s Finance Ministry has turned down the Commerce Ministry’s proposal to extend an export duty refund scheme to the steel because of limited funds as there were other areas which need more attention.

Under RoDTEP, various central and state duties, taxes and levies imposed on input products, among others, will be refunded to exporters. Rebates are issued in the form of a transferable duty credit/electronic scrip (e-scrip) which is maintained in an electronic ledger by the Central Board of Indirect Taxes and Customs. Eligible exporters get refunds from the government in the range of 0.3-4.3% of the free-on-board value of their products.
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Detail

Vertraagd 24 apr 2024 17:35
Koers 23,640
Verschil +0,170 (+0,72%)
Hoog 23,950
Laag 23,550
Volume 2.185.626
Volume gemiddeld 2.462.006
Volume gisteren 3.800.729

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