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voda 6 december 2022 07:43

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Tata Steel UK Had Warned Minister over Dalzell State Aid

Strategic Research Institute
Published on :
6 Dec, 2022, 5:36 am

Scottish government ministers have been accused of deceiving MSPs after documents revealed warnings of legal action over the costs of a steel mill. Scotsman reported that new documents, obtained by the Scottish Liberal Democrats show Tata Steel UK had already warned ministers of the potential for legal action and of their unhappiness with the unilateral decision of ministers to claim the contract breached state aid rules. The Scottish Liberal Democrats party is now calling for the business minister, Ivan McKee, to apologies to parliament for his “cavalcade of deception”.

Mr McKee was first informed of a potential issue with the deal two months before MSPs were updated, but only spoke to Tata days before going public. The steel giant complained of the limited time to respond and requested an opportunity to challenge the conclusion the deal breached state aid rules. In a letter sent to the government on December 14, 2021, the day before Mr McKee’s statement to parliament, Tata told ministers it believed a final conclusion on state aid and therefore whether taxpayers are liable for millions in environmental clean-up would have to be determined by the court.

It said: “In any event, we note that it is not within the Scottish Government’s competence to make a legally binding determination on the existence of State aid. Such a proposition would, if necessary, be a question for determination by the courts (or the European Commission) at the appropriate time.”

Tata Steel UK sold Dalzell to the Scottish Government in an unprecedented ‘back-to-back’ sale for GBP 1, with the government selling the Dazel plant in Motherwell in North Lanarkshire immediately to Mr Sanjeev Gupta’s Liberty Steel. As part of the deal, Scottish ministers took on all of Tata Steel’s potential liability for all known and unknown liabilities at the site, including around environmental clean-up, costs which could end up in the millions. Ministers agreed an equivalent clause with Liberty, with the aim of ensuring the costs would not pass to the taxpayer.

However, as Liberty Steel’s parent company, GFG Alliance, began to wobble last year following the collapse of its main funder, Greensill Capital, due diligence by ministers appeared to suggest the deal broke state aid rules. This, ministers said, meant the deal was unenforceable and that the taxpayer would not be held liable for any costs associated despite the contract with Tata Steel.

voda 6 december 2022 07:43

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Klöckner & Co Bags German Sustainability Award

Strategic Research Institute
Published on :
6 Dec, 2022, 5:37 am

Duisburg headquartered German steel & metal processor & distributor Klöckner & Co has been awarded the German Sustainability Award in the Climate Transformation category. The jury honored the Company’s sustainable transformation and, in particular, the categorization developed by Klöckner & Co for CO2-reduced steel.

According to the jury, Klöckner & Co has provided a fundamental basis for the transformation of the entire industry with the customer-oriented categorization promoting the sale of CO2-reduced material and opening up major opportunities for the future. Following the experts, the approach ensures transparency and comparability along the entire value chain, creating an innovative product portfolio of sustainable, significantly CO2-reduced steel.

The award, now in its 15th year, is presented annually to companies that promote sustainability as part of their business model and by doing so contribute effectively to transformation.

The German Sustainability Award is the national award in Germany for exemplary sustainability performance in business, local administration, and research. Award winners are chosen in eight categories from among over 1,000 participating companies. This makes the award the biggest of its kind in Europe. It is presented by the German Sustainability Award Foundation in cooperation with the German government, local authority associations, industry associations, civil society organizations and research institutes.

voda 6 december 2022 07:44

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NMDC Reports 8% YoY Surge in Iron Ore Sales in November

Strategic Research Institute
Published on :
6 Dec, 2022, 5:37 am

India’s leading iron ore miner NMDC has reported 8% YoY surge in iron ore production & sales in November 2022 signaling demand revival

-------------------------------

November 22 Production

Chhattisgarh - 2.57 million tonnes, flat YoY

Karnataka - 1.04 million tonnes, up 33% YoY

Total - 3.61 million tonnes, up 8% YoY

------------------------

November 22 Sales

Chhattisgarh - 2.57 million tonnes, flat YoY

Karnataka - 1.04 million tonnes, up 33% YoY

Total - 3.61 million tonnes, up 8% YoY

-----------------------------------------

April- November 2022 Production

Chhattisgarh - 16.4 million tonnes, down 2% YoY

Karnataka - 6.92 million tonnes, down 10% YoY

Total - 23.32 million tonnes, down 4% YoY

----------------------------------

April- November 2022 Sales

Chhattisgarh - 15.93 million tonnes, down 12% YoY

Karnataka - 6.56 million tonnes, down 5% YoY

Total - 22.49 million tonnes, down 10% YoY

Similarly, state-owned manganese ore miner MOIL produced 120,000 tonne of manganese ore in November, registering a growth of 60% over October. On the sales front, MOIL has recorded a growth of 82% during November over the previous month.

voda 6 december 2022 07:44

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Severstal Lost USD 400 Million due to Western Sanctions

Strategic Research Institute
Published on :
6 Dec, 2022, 5:38 am

Interfax reported that Russian steelmaker Severstal has lost USD400 million due to the freezing of Western accounts and warehouses. Severstal's Chairman Mr Alexei Mordashov said “We all understand that it's currently very difficult to return foreign currency revenue to the country, impossible to a certain degree. For example, we, Severstal, have lost USD 400 million, slightly more, stranded in Europe, frozen in the form of inventory, account balances. We won't receive it until sanctions are lifted.”

Severstal and main owner Mr Mordashov have been subject to United States blocking sanctions since June. Mr Mordashov was also sanctioned by the European Union in the spring.

voda 6 december 2022 07:45

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Jindal Stainless Inks Pact with ReNew Power for Renewable Energy

Strategic Research Institute
Published on :
6 Dec, 2022, 5:38 am

India's leading stainless-steel manufacturer Jindal Stainless has signed a contract with the country's largest renewable energy company ReNew Power to develop a utility scale captive renewable energy project for the supply of power to its facility in Jajpur in Odisha. The Project will generate 700 million units per year through a mix of solar and wind technologies.

This innovative Wind-Solar hybrid solution, with a high-Capacity Utilization Factor, is expected to generate a significantly higher amount of energy per unit of the contracted capacity.

The Wind-Solar hybrid Project to power Jindal Stainless' increase in combined production capacity from 1.9 million tonne per annum to 2.9 million tonne per annum; Jindal Stainless to reach net zero emissions by 2050

With this, ReNew Power also brings its Round the Clock solution to the B2B space, which it pioneered for Utilities earlier last year. Moreover, a partnership with the largest renewable player also brings in the requisite execution certainty for Jindal Stainless, which is of paramount importance for a project of this scale.

voda 6 december 2022 07:46

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EUROFER Lauds WTO Ruling over Indonesian Export Ban Of Nickel Ore

Strategic Research Institute
Published on :
6 Dec, 2022, 5:39 am

The European Steel Association EUROFER has welcomed the WTO Panel report ruling against Indonesia’s ban on the export of nickel ore. These measures have been artificially distorting the global market for nickel ore and fuelling the new export-oriented stainless steel production in Indonesia, whilst harming the EU stainless sector. EUROFER Director General Mr Axel Eggert said “The WTO dispute resolution panel confirms what EUROFER has been saying for the past four years: the Indonesian measures on nickel constitute a violation of its obligations under WTO rules. Our stainless industry has been suffering from massive Indonesian exports into the EU at very low prices, while the stainless steel products made in the EU have a carbon footprint five to six times lower. This is a nonsense that should not be tolerated by the EU any longer against the background of the EU 2030 climate targets.”

The EU requested consultations at the WTO in November 2019, and the establishment of a Panel in January 2021. The WTO panel report was made public on 30 November 2022.

Nickel is a key component in the production of stainless steels. Around 55% of all stainless steels contain nickel, as it improves corrosion resistance and properties.

The Indonesian stainless steel industry was developed and built upon locally-available nickel ores from the outset, taking advantage of the local export ban that unduly grants an unfair competitive advantage to the Indonesian producers, whose business model is based on exports.

voda 6 december 2022 07:46

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Investment Approved for Green Steel at Saarstahl & Dillinger

Strategic Research Institute
Published on :
6 Dec, 2022, 5:39 am

The Supervisory Boards of Stahl-Holding-Saar, Saarstahl & Dillinger, the Board of Trustees of Montan-Stiftung-Saar and the Board of Management of Stahl-Holding-Saar have jointly resolved to invest EUR 3.5 billion, subject to the approval of public funds, to transform the steel industry in the Saarland in Germany and enable production of green steel. The decision by the Supervisory Boards enables the decarbonization of Saarland’s steel industry. Starting as early as 2027, up to 3.5 million tonnes of low-carbon steel will be produced annually in Saarland and carbon emissions will be cut by 4.9 million tonnes.

Over the next few years leading up to 2027, in addition to the established blast furnace route, the new production line with an electric arc furnace will be built at the Völklingen site and an EAF and direct reduced iron plant for the production of sponge iron will be built at the Dillinger plant site.

Transformation branding has also been developed to visually represent the transformation: “Pure Steel +”. The message of "Pure Steel +” is that Saarland’s steel industry will retain its long-established global product quality, ability to innovate, and culture, even in the transformation. The “+” refers to the carbon-neutrality of the products.

The availability of green hydrogen at competitive prices is a basic precondition for this ambitious project to succeed, along with prompt funding commitments from Berlin and Brussels. Local production of hydrogen will therefore be established as a first step together with the local energy suppliers, before connecting to the European hydrogen network to enable use of hydrogen to be increased to approximately 80%. The Saarland steel industry is thus laying the foundation for a new hydrogen-based value chain in the Saarland, in addition to decarbonizing its own production. In this way, Stahl-Holding-Saar is supporting Saarland on its path to becoming a model region for transformation.

voda 6 december 2022 07:47

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South Africa Bans Steel & Copper Scrap Exports to Stop Thefts

Strategic Research Institute
Published on :
6 Dec, 2022, 5:40 am

South African Government has announced details of targeted measures to address the theft of public infrastructure for resale as scrap metal that causes more than ZAR 47 billion damages annually to the economy. The measures involve prohibition of export of scrap copper and ferrous metal for a six month period, which will be followed by a system to regulate trade in such metals.

In Phase 1, three key interventions to be implemented:

First, Government will impose a 6-month temporary prohibition on all waste and scrap copper and copper alloy exports and ferrous waste and scrap exports. Limited exceptions will be allowed for ferrous waste and scrap exports.

Second, a permit system which will be administered by the International Trade and Administration Commission will apply to semi-finished copper exports.

Third, import controls through a permit system will be instituted for furnaces and other scrap transformation machinery.

In future phases, new measures will be introduced including prohibiting the use of cash in copper and scrap metal transactions, following legislative amendments; and limiting exports to a defined number of ports of exit.

These measures were considered and approved by Cabinet on 16 November 2022, as part of a comprehensive package of measures to address the damage caused by metal theft to public infrastructure, the economy and communities.

Official opposition and the second largest political party in South Africa, the Democratic Alliance has rejected the introduction of these regulations. DA said “Even though there are those who illegally benefit from recycling and trading with such metals, a significant proportion of traders in the industry do abide by the law and conduct legitimate business dealings. These traders will bear the brunt of Government onerous overreach, not the special interest groups in the upstream steel industry. The Government at large is attempting to address is a crime problem and not a trade policy issue. The situation therefore speaks to Government’s inability to capacitate law enforcement authorities to combat illegal activities in this regard. In fact, the Department is silent on how an already overstretched police force will be bolstered to enforce the newly introduced regulations, especially when they have shown themselves unable to do so hitherto.”

voda 6 december 2022 07:48

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Liberty’s Flémalle & Tilleur Plants Sale Process Starts in Belgium

Strategic Research Institute
Published on :
6 Dec, 2022, 5:40 am

Financial Times reported that a court in the city of Liege last week upheld a request by workers at Liberty Steel subsidiary to start the restructuring and appointed a legal representative to oversee the sale of the two plants at Flémalle and Tilleur. The court ruled “Under the process, which is designed to protect the business from creditors and will initially run until the end of next April, the plants will be managed by a second court appointee and a buyer would be sought for all or part of the operations.”

Liberty Steel Group, the management team of Liberty Liège and its unions jointly requested the Liège Enterprise Court’s opening of a judicial reorganization?for its Liège plants, which has now been granted. The company’s management team, its unions and the court-appointed administrators will now work collaboratively with other stakeholders to identify and realize strategic options for the business, including its sale

The two Belgian steel plants, which together employ about 650 people, operate under GFG’s steel arm, Liberty Steel Group. GFG acquired the sites and a facility in Dudelange, Luxembourg, from ArcelorMittal in 2018.

Mr Gupta in May successfully appealed against a decision that called for the Belgian business to be liquidated after a judge rejected a restructuring plan. Since then, however, soaring energy prices in Europe in the wake of the war in Ukraine, coupled with falling customer demand, have severely affected operations at the two plants, which have been idled for several weeks.

voda 6 december 2022 07:48

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Russian Rocket Hits ArcelorMittal Kryvyi Rih Plant

Strategic Research Institute
Published on :
6 Dec, 2022, 5:41 am

Pravda reported that Russian invaders launched a rocket strike on the premises of ArcelorMittal Kryvyi Rih on the night of 5 December and killing one employee and injuring three others. As per report “The emergency plan was activated, and the fire service, the department of labour protection and the medical service were dispatched to the site. Rescue workers are still working at the site of the attack. All necessary assistance is being provided to the victims.”

The company added “At this early stage, all our efforts are focused on bringing the situation under control.”

The ArcelorMittal Kryvyi Rih is Ukraine's largest steel manufacturer of rebar and wire rod. At the end of November, the plant suspended operation due to power supply issues.

voda 6 december 2022 07:49

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European Commission Initiates Review of EU Steel Safeguards

Strategic Research Institute
Published on :
6 Dec, 2022, 5:41 am

The European Commission has initiated a review of the steel safeguard measure to determine whether it should be terminated one year earlier than its current end date of 30 June 2024. EU producers and users of steel have been invited to fill in questionnaires with specific data that the Commission will need for its investigation. Interested parties, including third country governments, have the opportunity to present their arguments to the Commission in writing until mid-January 2023.

Following its investigation, the Commission will make a proposal by 30 June 2023 at the latest on whether the steel safeguard measure should be terminated. EU Member States will then vote on the proposal.

The Commission originally introduced its steel safeguard measure in 2019, in an effort to prevent steel destined for but unable to reach the US market because of Section 232 duties from being diverted to the EU market and causing harm to the EU steel industry. The US Section 232 duty on steel is still in place. The Commission had committed to undertaking this review when it extended its original safeguard measure in June 2021.

The 26 products include non-alloy & other alloy and stainless hot rolled sheets and strips, non-alloy & other alloy and stainless cold rolled sheets, as well as stainless CR strips, and electrical, metallic-coated and organic- coated sheets.

They also include tin mill products, non-alloy & other alloy and stainless quarto plates, non-alloy and other alloy merchant bars and light sections and wire rod, stainless bars and light sections, and wire rod and rebars. Non-alloy and other alloy cold finished bars, non-alloy wire, seamless stainless tubes and pipes, other seamless and large-welded tubes and other welded pipes are also included, as are angles, shapes and sections of iron or non-alloy steel, sheet piling, railway material, gas pipes and hollow sections.

voda 6 december 2022 07:50

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US & EU Weigh Climate Based Tariffs on Chinese Steel & Aluminium

Strategic Research Institute
Published on :
6 Dec, 2022, 5:42 am

Bloomberg, citing people familiar with the matter, reported that the US and European Union are weighing new tariffs on Chinese steel and aluminium as part of a bid to fight carbon emissions and global overcapacity. The report quoted sources as saying that “The idea, generated within US President Joe Biden’s administration, is still in an initial phase and has not been formally proposed.”

Sources also said “The new framework, which builds on a related US-EU agreement last year, is mainly aimed at China, the world’s biggest carbon emitter and producer of steel and aluminium, as well as other large polluting nations.”

They added “An agreement with the EU, including specifics on how to identify thresholds for applying tariffs, is not likely until late next year at the earliest, even that timeline was optimistic.”

The move would mark a novel approach, as the US and EU would seek to use tariffs, usually employed in trade disputes, to further their climate agenda.

voda 6 december 2022 09:15

1

EU avoids scrap export ban, monitors non-OECD exports
241 Views

The Environment Committee (ENVI) of the European Parliament voted last week in favour of new changes to the Waste Shipment Regulation (WSR). These include a stronger monitoring of non-hazardous waste sales to non-OECD countries, with the possibility to limit sales to specific countries.

The vote confirms the increasing attention being given by European authorities to ferrous scrap materials trading. However, it has not resulted in a more general export ban, requested by some steel industry participants in recent months.

The latest decision indicates that exports will only be allowed to “those non-OECD countries that give their consent and demonstrate their ability to treat this waste sustainably”, the Parliament says. An annual list of such countries will be updated every year. Similar restrictions will not be implemented on OECD countries, including Turkey or the US. Non-OECD importers of European scrap include India, Pakistan, Bangladesh and China.

Eurofer, the European steelmakers association, welcomed some of the changes implemented, but notes that “significant issues remain largely unaddressed". The association wishes, in particular, for exports to OECD countries to also be monitored and for a system to be applied to prevent circumvention of rules.

Eurofer explains that ferrous scrap is by far the most exported waste from the EU – 19.5mt in 2021, equal to 59% of all EU waste exports. It adds nevertheless that it has a vital role to achieve decarbonisation targets for European steelmakers.

While steelmakers have for a long time been in favour of restricting scrap exports to secure availability of a key raw material domestically, the recycling industry in Europe has explained extensively that limiting international trade could reduce the availability.

“Contrary to some false claims, export restrictions will directly damage the availability of raw materials from recycling to European energy-intensive industries as has been witnessed in non-European countries,” Euric, representing European recyclers, explains in a note seen by Kallanish. “The absence of competitive end-markets for recycled raw materials will negatively affect waste collection, recycling, and investments to scale up recycling capacities. As such, the proposed export restrictions will put at risk the ability to achieve EU recycling targets."

The ENVI report is set to be presented and adopted during the January plenary sitting of the European Parliament. Negotiations will then begin with EU governments on the final shape of the legislation.

Emanuele Norsa Italy

voda 6 december 2022 09:56

0

Nog meer staal nieuws, zie de bijlage.
Bron Steelguru

Bijlage:

voda 6 december 2022 10:22

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ArcelorMittal koopt oudijzerverwerker Riwald

Geen financiële details.

(ABM FN-Dow Jones) Staalmaker ArcelorMittal heeft verwerker van oud ijzer Riwald Recycling overgenomen voor een onbekend bedrag. Dit maakte ArcelorMittal dinsdag bekend.

De deal werd maandag beklonken en moet nog door de relevante autoriteiten worden beoordeeld. Naar verwachting kan de aankoop in januari 2023 worden afgerond.

Riwald is in 1989 opgericht, met een vestiging in Almelo en één in Beverwijk. Daarmee verwerkte het bedrijf in 2021 330.000 ton oud ijzer.

Door: ABM Financial News.

info@abmfn.nl

Redactie: +31(0)20 26 28 999

voda 7 december 2022 07:00

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Australia Extends AD Duty on HRC from Taiwan

Strategic Research Institute
Published on :
7 Dec, 2022, 5:36 am

The Australian Anti-Dumping Commission has announced the final results of the sunset review of the antidumping duty on hot rolled coil from Taiwan. The commission has decided the continuation of the duties as under

Chung Hung Steel Corporation - 5.1%

China Steel Corporation - 3.2%

Shang Chen Steel - 2.0%

All other exporters - .5%

The review was launched on 4 January 2022 and covered the period of 1 January 2021 to 31 December 2021 on petition from BlueScope

The goods the subject of the application (the goods) are Hot rolled coil (including in sheet form), a flat rolled product of iron or non-alloy steel, not clad, plated or coated (other than oil coated). Goods excluded from this application are hot rolled products that have patterns in relief (known as checker plate) and plate products.

The products subject to the reviews fall under the HS codes 7208.25.00, 7208.26.00, 7208.27.00, 7208.36.00, 7208.37.00, 7208.38.00, 7208.39.00, 7208.53.00, 7208.54.00, 7208.40.01.00, 7208.40.01.00, and 7211.19.00.

voda 7 december 2022 07:01

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Nippon Steel Celebrates 50th Anniversary of Tube Supply to Shell

Strategic Research Institute
Published on :
7 Dec, 2022, 5:36 am

Nippon Steel, Sumitomo and Shell held a ceremony in The Hague in the Netherlands on 11 November to celebrate the 50th anniversary of the tubular steel supply. At the ceremony, Nippon Steel and Sumitomo Corporation looked back on the successful history of the relationship, and Shell once again commended Nippon Steel and Sumitomo Corporation's ability to deliver value by providing a total solution service of high quality products tailored to Shell’s needs, enhanced supply chain management services, and a steady response to localization requirements.

Nippon Steel, Sumitomo Corporation and Shell pledged to further strengthen their relationship, and have agreed to accelerate their collaboration beyond tubular supply into the energy transition more broadly, including areas such as hydrogen and CCS, with the goal of jointly accelerating the shift towards a carbon neutral society.

Nippon Steel and Sumitomo Corporation have been supplying tubular steel products to Shell since 1972, when they first shipped OCTG to Brunei Shell Petroleum. The Global Framework Agreement, a long-term sales contracts for OCTG, started in 2006, and through which more than 1.7 million tons of OCTG and line pipe tubular steel has been delivered to Shell’s operations worldwide.

voda 7 december 2022 07:02

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TMK Improves Equipment Repair Efficiency with IT Solutions

Strategic Research Institute
Published on :
7 Dec, 2022, 5:37 am

Russian Pipe Metallurgical Company TMK has introduced digital tools to automate the maintenance and repair system of equipment MRO, increasing the efficiency of repair process management. The company announced this at the All-Russian Forum on MSO Automation, which was held in an online format. At the event, TMK presented IT solutions that are used to modernize the MRO system, and the main tasks for the implementation and development of an automated MRO operational management system for the period 2023-2025.

The project to create an automated MRO management system within the framework of the TMK Digital Production program will significantly improve the efficiency of equipment repair processes management. As part of this long-term work, the company is developing a whole range of IT solutions, including diagnostic systems and mobile data collection technologies. The transition to an industrial service system, coupled with the introduction of an automated control system, will give an additional synergistic effect, facilitate work and free up employees' working time, as well as optimize the cost of maintenance and repair of equipment.

voda 7 december 2022 07:03

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ArcelorMittal Brazil’s Mr De Paula Bags Business Personality Award

Strategic Research Institute
Published on :
7 Dec, 2022, 5:37 am

ArcelorMittal Brazil President and ArcelorMittal Aços Longos & Mineração LATAM CEO Mr Jefferson De Paula was awarded the "Business Personality of the Year of Minas Gerais" award. The executive was one of the honorees in the 24th edition of the "Minas Award - Business Performance - Best and Greatest", organized by the magazine Common Market. The ceremony took place on 28 November in the capital of Minas Gerais. At the time, ArcelorMittal was also featured in the category "Tradition and Perpetuity" for the centenary, completed in 2021, and for being among the 50 best and largest in the state.

The choices of the company and its president are due to the financial results obtained last year, the milestone of 100 years of foundation and the importance of the segment to the economy. ArcelorMittal is the largest steel producer in Brazil and has innovation at the center of its strategy. Its production of long steel and high quality plans supplies the automotive, home appliances, packaging, construction and shipbuilding industries.

Mr De Paula is also the Chairman of the World Council for Health and Safety of the group. He is also a member of the Executive Committee of the ArcelorMittal Group. He has been in the steel industry for over 36 years. He has been in the group since 1991, having held several executive positions in Brazil, Argentina, USA, Canada, Mexico and Europe.

As an external partner to the ArcelorMittal group, the executive is currently vice-chairman of the board and member of the strategic board of the Federation of Industries of the State of Minas Gerais FIEMG, vice-chairman of the board of directors of the Brazil Steel Institute IABr and vice-chairman of the board of the Latin American Steel Association Alacero).

De Paula holds a degree in metallurgical engineering from the Fluminense Federal University (Brazil), and has an executive degree in business schools such as Fundação Dom Cabral (Brazil), Universidad Austral - IAE School of Business (Argentina), Insead (France) and Kellog School of Management, Northwestern University (USA).

Bijlage:

voda 7 december 2022 07:04

0

Shortage of Steel in Pakistan as Scrap Import Hit by LC Issues

Strategic Research Institute
Published on :
7 Dec, 2022, 5:38 am

The Nation reported that Pakistan’s steel industry fears shortage of steel in the country coupled with an increase in the cost of steel as the industry is facing acute difficulties in import of raw material due to problems being faced in opening up of the LCs. Pakistan Association of Large Steel Producers has demanded urgent measures from Pakistan Government for addressing the issue of delay in opening of LCs for steel imports. The PALSP has urged the State Bank of Pakistan Governor and Minister for Finance to help the troubled industry by ensuring timely opening of LCs.

There is a dollar crisis in the banks over the country. The importers are unable to open letters of credit due to lack of dollar and are not able to import goods from different destinations. Banks are also hesitant to open LCs for the import of raw materials and delay in LC opening and approvals from SBP are also witnessed. The production activities are badly suffering due to delay in opening of LCs and at the same time, long queues of importers are seen to get permission to open LCs while banks are facing a low inflow of dollars.

The ongoing situation has created serious problems for the industry due to the shortage of raw material for their manufacturing activities. Due to non-release of import documents and consequent non-availability of raw material, many steel mills are on the verge of closure. Some have already cut their productions drastically. The steel industry heavily relies on imported raw material. So, the curbs on the opening of letters of credit have significantly affected the production activities. Due to delays by SBP in LC’s approval, continuous rupee depreciation, and uncertainty in market the manufacturers are facing disruptions in industrial production, unbearable demurrages and container charges, loss-making delays in fulfillment of orders. All of this will result in inflationary pressures in the domestic markets and further discouraging investor sentiment.

During the first 4 months July 22 to Oct 22 of the current financial year, Pakistan’s scrap imports have decreased by 41% YoY to 890,783 tonnes.

Vertraagd	19 apr 2024 17:35
Koers	23,830
Verschil	+0,030 (+0,13%)
Hoog	23,880
Laag	23,440
Volume	2.845.773
Volume gemiddeld	2.432.086
Volume gisteren	2.676.573

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