Nieuws en info hier plaatsen (deel 4)

1. voda 2 januari 2020 19:40

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   US Finished Steel Imports in 2019 to Shrink by 17% YoY
   
   Based on preliminary Census Bureau data, the American Iron and Steel Institute reported that the US imported a total of 1,541,000 net tons of steel in November 2019, including 1,311,000 net tons of finished steel (down 29.9% and 12.5%, respectively, vs. October final data). Through the first eleven months of 2019, total and finished steel imports are 26,332,000 net tons and 19,675,000 net tons, down 17.3% and 18.1%, respectively, vs. the same period in 2018. Annualized total and finished steel imports in 2019 would be 28.7 million net tons and 21.5 million net tons, down 14.8% and 16.5%, respectively, vs. 2018. Finished steel import market share was an estimated 15% in November and is estimated at 19% over the first eleven months of 2019. Key finished steel products with a significant import increase in November compared to October are cut lengths plates (up 46%), hot rolled bars (up 24%), standard pipe (up 13%) and line pipe (up 12%).
   
   In November the largest volumes of finished steel imports from offshore were from South Korea (188,000 net tons, up 11% from October final), Japan (85,000 net tons, up 14%), The Netherlands (70,000 net tons, up 131 %), Germany (55,000 net tons, down 30%) and Taiwan (31,000 net tons, down 21%). For the first eleven months of 2019, the largest offshore suppliers were South Korea (2,408,000 net tons, down 10% vs. the same period in 2018), Japan (1,175,000 net tons, down 9%), German)' (965,000 net tons, down 21%), Taiwan (799,000 net tons, down 21%) and Vietnam (650,000 net tons, down 36%).
   
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   Source : Strategic Research Institute

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2. voda 2 januari 2020 19:55

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   Crude Steel Production Estimates for 2019
   
   Brief
   The global crude steel production, assuming December number similar to November data, is adding to 1.836 billion tonnes, up by 46.9 million tonnes as compared to 1.789 billion tonnes in 2018. The increase is primarily due to additional crude steel production of estimated 65.5 million tonnes in China in 2019
   
   Voor cijfers, zie pdf.
   
   Australia’s Department or industry, innovation and Science’s Resources and Energy Quarterly December 2019 Commentary
   
   Automotive production trended down across most countries over the second half of 2019, resulting in more stagnant steel demand towards the end of the year. The causes of slowing automotive demand include falling consumer sentiment, lack of certainty over vehicle emissions policies in many countries, and postponements of purchasing decisions amidst the expected rise in electric vehicle sales. Industrial production growth has now slipped below broader economic growth across much of the world.
   
   European Union steel output fell in October, for the 10th successive month, as well as in Japan and South Korea. Growth is also softening in India, and appears to have halted in the US, though this may be just a temporary downturn. Growth in Vietnam is accelerating, with steel output increasing by almost a third over the past 12 months.
   
   Chinese steel demand is more tilted towards infrastructure and construction than in most other countries, and government backing for these sectors has kept Chinese steel demand relatively strong, though margins have become squeezed. There have been signs of increasing weakness in recent months, with annual growth in China’s Fixed Asset Investment dropping to 5.2 per cent in October. This is a 20-year low, and falls short of expectations, which had been for growth of the year to October, similarly falling short of expectations. Chinese steel production eased to 2.6 million tonnes a day in October, and scheduled winter production cuts, while less severe than observed in previous years, make it unlikely that steel production will grow in any significant way over the upcoming March quarter 2020.
   
   Steel production in China is heavily state supported, but faces significant downside risks, due to broader global uncertainty; tighter environmental regulations are also likely to play a role. The Chinese Government has announced new air quality targets, with concentrations of particles below 2.5 microns to fall by 4 per cent through the year, and heavy pollution days set to fall by 6 per cent. While substantial, these goals were revised down from earlier drafts, and may be managed in most cases without significant impact on production.
   
   Liuzhou Steel and Chanjiang Steel are set to close facilities by 2021, and production is scheduled to fall at the Tianjin Rochcheck Steel Group, where a blast furnace plant is set to close. Several facilities are also reducing output, including in Hebei Province, where production is being reduced by 14 million tonnes, and Shanxi, where steel output is set to fall by 1.75 million tonnes.
   
   The premium for high-grade iron ore has eased in recent months, perhaps reflecting an attempt by Chinese steel mills to reduce costs. However, production is likely to stay high, with steel output high at most facilities and winter production cuts likely to be modest.
   
   Growth in emerging Asia is dominated by India and Vietnam, who have unveiled detailed plans to develop much larger steel industries.
   
   Due to its size, India has become a pivotal player in global steel production over the last five years. However, Indian production faces an array of challenges which include tight margins, ample international supply, domestic economic slowdown, and global trade tensions. Near- term Indian production may also be disrupted by the expiry of 232 mining leases in March 2020.
   
   Steel production in the EU faces some similar challenges, with potential oversupply and trade tensions leading to falling profitability. European steel production in 2019 is likely to decline by about 3 per cent. Tata Steel announced 3,000 jobs would likely be cut in the United Kingdom (and the Netherlands, as a result of the deteriorating outlook. This follows the collapse of British Steel, the second largest steelmaker in the UK, which went into liquidation in May and subsequent takeover by the Chinese-owned Jingye Group. On the upside, provisional signs are emerging that the recent decline in automotive production may be starting to reverse in parts of Europe: if this trend continues, steel production may track up again in 2020.
   
   In Japan, the steel outlook remains relatively modest, largely due to a decline in manufacturing growth during 2019. However, recent stimulus announcements may provide some upside in 2020. Steel production in the US has also lost momentum in recent months, reflecting the impact of lower global automotive production and trade tensions. However, most US steelmakers remain profitable and more resilient than those in Europe.
   
   Steel production around the world will likely continue to track closely with global industrial production and automotive construction, making these measures crucial to the fortunes of global steelmakers. Steelmakers in most countries are ending 2019 with lower profits, tighter margins and a more negative production trend than at the start of the year.
   
   Department or industry, innovation and Science (2019)
   Source : World Steel Association (2019) Department or industry, innovation and Science (2019)

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3. voda 3 januari 2020 16:34

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   Baowu Steel Aiming to Cross 100 Million Tonne Mark with Chongqing Iron & Steel Acquisition
   
   Baowu Steel Group announced that it intends to acquire a controlling stake in Chongqing Iron and Steel Co Ltd, a move that will effectively push the company closer to its goal of an annual output to more than 100 million tonnes per year. Chongqing Iron and Steel announced that its controlling shareholder, Four Rivers Investment Management Co Ltd, had just signed a letter of intent with China Baowu for the purchase of its controlling stake. The Shanghai-listed Chongqing Iron and Steel Co Ltd stated that China Baowu will outright purchase the shares, with the deal expected to be completed by the end of June this year.
   
   Chongqing Iron and Steel, which was originally established in 1997, went through a number of owners and stakeholders since it was founded. In 2017, Four Rivers was established as a fund meant to support the development of the company, which entailed massive upgrades and restructuring. China Baowu, through its investment arm Hwabao Investment, had purchased a stake in the Four Rivers fund along with US-China Green Fund.
   
   China Baowu is currently the China's larger steel producer and was formed through the merger of Shanghai-based Baosteel Group and Wuhan Iron and Steel Group in December 2016. The steel giant currently has a production capacity of over 70 million, making it the world's second-largest steel producer behind Luxembourg's ArcelorMittal.
   
   The acquisition is the latest in a line of strategic purchases made by China Baowu as part of its strategic plan to reach more than 100 million tonnes of production capacity by 2021. China Baowu originally revealed its plans in November 2017, as part of its development scheme with the goal of increasing its output from 80 million tonnes to 100 million tonnes before 2021. In June of last year, China Baowu had announced plans to acquire Maanshan Iron and Steel Co. The acquisition effectively expanded the company's crude steel output by around 19.64 million tonnes. The additional capacity drove China Baowu closer to its target production capacity. However, it still fell short of its 100 million tonne target.
   
   Source : Strategic Research Institute
4. voda 3 januari 2020 16:37

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   JSPL Posts Highest Ever Quarterly Production of Crude Steel
   
   Jindal Steel & Power Limited has recorded the highest ever quarterly domestic production of crude steel and related products with a 22% year on year growth in the third quarter ended December 2019, as a result of the strong and consistence performance across all locations, especially in the Angul operations. The total crude steel and related production stood at 1.61 million tonnes, compared to 1.32 million tonnes in the corresponding period last year. During Q3FY20, JSPL has recorded a growth of 30% in sales at 1.66 million tonnes as against 1.27 million tonnes in the same period last year. Export shipments increased to more than 3 Lakh tonnes an increase of 213% (YoY during Q3FY20. JSPL MD said Mr VR Sharma said "JSPL delivered a solid performance in the third quarter and the results were essentially in line with our expectations, this is despite adverse market conditions. JSPL recorded forever highest rail sales volume for the quarter. We are going to start our DRI- CGP (Coal Gasification plant) unit at Angul during Jan 2020, and together with a favourably evolving product mix, we expect to further drive growth in sales and profit. As we begin 2020, we are excited about the prospects, and confident that the coming quarter would be even much better for JSPL. Increased demand from infrastructure projects especially for segments like railways, defense, petroleum, and pipelines will certainly drive steel demands for JSPL."
   
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   Source : Strategic Research Institute

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5. voda 3 januari 2020 16:39

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   Viraj Profiles to Make Spacial Steel for Aerospace and Defence Applications
   
   The Hindu reported that leading stainless steel manufacturer Viraj Profiles Ltd announced plans to invest in manufacturing special steel, technological up-gradation and eco-friendly initiatives. The company has signed an agreement with SAP and Cisco for upgrading its IT infrastructure. It is switching to green solution and focusing on energy efficiency by using recycled scrap that supports waste management, conserves natural resources and reduces its carbon footprint, it said. Viraj Profiles CMD Mr Neeraj Raja Kochhar said “Being eco-friendly is one of the top priorities of our company. We are currently in the process of setting up facilities for producing special types of steel and super alloys for critical applications in aerospace, defence, and power projects. To achieve this, we are upgrading with special melting and re-melting furnaces such as Vacuum Induction Melting, Electro slag re-melting and Vacuum Arc re-melting.”
   
   He said “These special grades will be used in the power, defence, and aerospace sectors. Some new additions to the product range are also in place. We are also expanding our range of austenitic, martensitic and ferritic grades.”
   
   Source : The Hindu
6. voda 3 januari 2020 16:40

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   Tenaris Completes Acquisition of IPSCO Tubulars from TMK
   
   Tenaris SA announced the completion of its previously announced acquisition of IPSCO Tubulars Inc, a US manufacturer of steel pipe, from PAO TMK. The acquisition price was determined on a cash-free, debt-free basis, and the final amount paid in cash, following contractual adjustments, was USD 1,067 million (including USD 220 million in working capital). Tenaris will consolidate IPSCO’s balance sheet and results of operations in its consolidated financial statements beginning in the first quarter of 2020. In connection with the closing of the transaction, the parties entered into a 6-year master distribution agreement whereby, beginning on January 2, 2020, Tenaris will be the exclusive distributor of TMK’s OCTG and line pipe products in the United States and Canada.
   
   Tenaris’s existing U.S. industrial and service network, located primarily in the south, is complemented by IPSCO’s facilities located mainly in the mid-western and northeastern regions of the country. IPSCO’s steel shop in Koppel, PA, is Tenaris’s first in the United States, providing vertical integration through domestic production of a relevant part of its steel bar needs. Its Ambridge, PA, mill adds a second seamless manufacturing facility and complements Tenaris’s seamless plant in Bay City, Texas.
   
   Source : Strategic Research Institute
7. voda 3 januari 2020 16:40

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   Essar Steel Shareholders Loose Their Holding
   
   The shattered investors of Essar Steel had finally received the communication from ArcelorMittal Nippon Steel Company through their brokers stating that their holding has been cancelled as per the insolvency resolution plan approved by the Supreme Court. In an e-mail statement to investors, Pankaj S Chourasia, Company Secretary, Essar Steel India said “In connection with the corporate insolvency resolution process of Essar Steel India, the resolution plan submitted by ArcelorMittal India has been approved by the Supreme Court through its judgment dated November 15, 2019, after considering the judgment of the National Company Law Tribunal, Ahmedabad and National Company Law Appellate Tribunal. Section X, Part B of the Resolution Plan provides for the capital reduction of the entire existing issued, subscribed and paid-up share capital (both equity and preference) of the company held by the existing promoters and public shareholders such that ArcelorMittal India (along with its nominee shareholders) will be the sole shareholder of the company. Accordingly, the entire existing issued, subscribed and paid-up share capital (both equity and preference) of the company stood cancelled and extinguished with effect from December 16, 2019.Pursuant to such capital reduction and cancellation, the shares of the company held by investors have been debited from demat account.”
   
   The resolution plan proposed by AreclorMittal and approved by Indian courts has obliterated the ownership rights of the erstwhile promoters of Essar Steel India. But it has also left a huge number of small shareholders holding worthless bits of papers.
   
   The development shows the risks and the perils that any equity shareholder, including a minority holder, faces if he continues to hang on to the shares of a company that is put through the bankruptcy resolution process.
   
   Source : Strategic Research Institute
8. voda 3 januari 2020 16:41

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   Monnet Ispat & Energy to Start Integrated Steel Operations
   
   Business Standard reported that Monnet Ispat & Energy, acquired by AION and JSW Steel through the insolvency process, is looking to start integrated steel operations, in the wake of a pick-up in steel demand. JSW Steel's JMDand Group CFO Mr Seshagiri Rao said "We have completed expansion of pellet plant to 2.4 million tonnes and we are also starting the integrated steel operations next month. So things should look better for Monnet."
   
   In October, Monnet informed the stock exchanges that it would undertake modification of plant and machinery for manufacturing special steel products. The period of shutdown of the plant, other than pellet plant and DRI, with effect from June 21, had been further extended and it would restart its integrated operations on completion of the modification which was expected to be in Q4 of financial year 2019-2020. Post-acquisition of management control, operations of the Raigarh pellet plant was started in October and production was ramped up to around 90 per cent of the installed capacity. Then in February, Monnet started integrated steel production through a blast furnace for iron making, an electric arc furnace for steel making, ladle refining, continuous casting and bar mill rolling.
   
   Monnet has a capacity of 1.2-1.3 million tonnes. There is however land available for expansion up to 3 million tonnes.
   
   Source : Business Standard
9. voda 3 januari 2020 16:43

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   Olympic Steel Names William Zielinski President and COO for Chicago Tube and Iron Subsidiary
   
   Leading US metals service center Olympic Steel Inc announced that effective January 1, William (Bill) Zielinski assumed the role of President, in addition to his existing responsibilities as Chief Operating Officer for Chicago Tube and Iron, an Olympic Steel subsidiary. As President and COO, Mr. Zielinski will lead the business strategy and day-to-day operations of Chicago Tube and Iron. He succeeds Dr. Donald (Don) R. McNeeley as President. As part of a carefully planned succession, Dr. McNeeley will continue with the Company and serve as Chairman of CTI.
   
   Mr. Zielinski began his metals industry career in 1979, holding various sales leadership positions with Bliss and Laughlin Steel. He joined Chicago Tube and Iron in 1992 as a Product Manager before progressing to Inside Sales Manager, General Manager, Vice President – Eastern Region and Vice President – Marketing. He assumed the role of Executive Vice President and Chief Operating Officer in 2016.
   
   Mr. Zielinski earned his Bachelor of Science Degree in Finance from Northern Illinois University and his Masters of Business Administration in Marketing from Loyola University. He is a graduate of the Metals Service Center Institute’s Management Program at Ohio State University and Executive Leadership Program at Texas A&M University. Mr. Zielinski serves on the Board of Directors for the American Supply Association’s Industrial Pipe Division and its Education Foundation.
   
   Source : Strategic Research Institute
10. voda 3 januari 2020 16:44

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    Philippines Steel Mills Seek Stricter Control Over Steel Quality
    
    Philippine steelmakers have asked the national level of the Department of Trade and Industry to take over the monitoring of mandatory products to intensify the fight against substandard products. Philippine Iron and Steel Institute President Roberto M Cola said “The DTI should once again take over the monitoring on the regional level of mandatory products. This will ensure the monitoring is objective and in accordance with standards, unlike under the existing setup. The setup now allows retailers to know when the regional officers of the DTI are about to conduct a monitoring, as they allegedly have links with some trade executives in their provinces; thus, giving them time to hide their substandard products. The setup now is that the provincial offices of the DTI are supposed to monitor the market. It’s not just in rebars, but in everything, from electrical items to risk hazard materials. The problem there is that those who are doing the monitoring are either friends or relatives of the owners of the hardware stores. They know the owners since they have been in the province for a long time. It’s difficult therefore to be objective, there’s like a regulatory capture. They cannot audit and monitor without running the risk of being subjective.”
    
    Mr Cola recalled how successful the former system was. He said “Before, the setup was that the DTI head office, through the Bureau of Product Standards, goes around the country to monitor. The advantage back then is that the stores in the regions do not know that there will be a team doing rounds in their area. At that time as well, the DTI had a partnership with the industry groups on steel, cement, electrical items, batteries and even in tires.”
    
    Source : Business Mirror
12. voda 3 januari 2020 16:44

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    Bangladesh Intensiying Crack down on Illegal Steel Makers
    
    Bangladesh’s Industries Minister Mr Nurul Majid Mahmud Humayun has directed the Bangladesh Standards and Testing Institution to soon start a drive against factories manufacturing illegal and substandard steel rods. While addressing a meeting with representatives of Bangladesh Steel Manufacturers Association at the ministry, he said “The drive will be run for the sake of public interest.”
    
    He further said legal action would be taken against paint manufacturers who illegally use the BSTI logo.
    
    He also directed the ministry officials to take effective measures in rationally fixing the certification fee of mild steel rods.
    
    Source : The Daily Star
13. voda 3 januari 2020 16:45

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    Operating Conditions in Chinese Maufacturing Sector Improve in December -CaixinChina General Manufacturing PMI
    
    The health of China’s manufacturing sector continued to improve in December, with firms registering a further strong rise in output. However, the rate of new order growth eased to a three-month low, and export sales rose only slightly. At the same time, confidence towards the 12-month business outlook remained relatively weak, and staffing numbers stagnated. Nonetheless, a further rise in new work prompted firms to expand their purchasing activity and inventories, which in turn placed further strain on supply chains. Operating expenses rose for the fourth month in a row, albeit marginally, which underpinned a renewed increase in selling prices. The headline seasonally adjusted Purchasing Managers Index, a composite indicator designed to provide a single-figure snapshot of operating conditions in the manufacturing economy, posted 51.5 in December, down from 51.8 in November. The latest figure remained consistent with a modest improvement in the health of the sector, with conditions now strengthening in each of the past five months. That said, the latest PMI reading was the lowest seen since September.
    
    Key Points
    Production continues to increase strongly...
    ... but new order growth softens, and employment stagnates
    Selling prices increase for the first time in six months
    
    Weighing on the headline index was a softer upturn in total new business at the end of the year. The rate of new order growth was modest, having eased to a three-month low. Panel members suggested that demand both at home and abroad had improved, though export work continued to rise only slightly overall.
    
    The sustained rise in new orders underpinned a further increase in production volumes during December. The rate of expansion remained strong overall, despite edging down for the second month in a row.
    
    Staffing levels were unchanged in December, as a number of firms mentioned efforts to contain costs and boost efficiency. As a result, the level of outstanding business rose again, albeit at a weaker pace.
    
    Purchasing activity rose for the sixth month in a row, though the rate of growth cooled from November. This, in turn, led to an increase in inventories of purchased items. Inventories of finished goods also expanded at the end of the year, which some companies linked to expectations that demand conditions will improve in the months ahead.
    
    Firmer demand for inputs placed further pressure on supply chains, with average lead times for purchased items lengthening again in December.
    
    At the same time, manufacturers registered a further rise in operating expenses, which was attributed to greater raw material and staffing costs. However, the rate of input price inflation was marginal and much softer than the series average. Nonetheless, the further increase in costs led companies to raise their selling prices for the first time since June, and at a modest rate.
    
    Although Chinese goods producers generally expect output to rise over the next year, concerns over ongoing trade tensions, environmental protection policies and intense market competition meant that overall sentiment remained weaker than the historical trend.
    
    Dr Zhengsheng Zhong, Director of Macroeconomic Analysis at CEBM Group, said “The Caixin China General Manufacturing PMI stood at 51.5 in December down from 51.8 in the previous month, indicating a moderate expansion of the manufacturing sector.
    1) Domestic demand expanded, but less quickly than in the previous two months. While the subindex for total new orders fell further in December from its high in October the gauge for new export orders fell more slowly, suggesting growth in domestic demand is slowing more rapidly.
    2) Production expanded at a relatively quick clip, helping stabilize the labor market. The output subindex remained at a relatively high level, despite dipping slightly. The employment subindex fell marginally from the previous month, to the border between contraction and expansion.
    3) As production expanded at a relatively fast pace, input deliveries, order backlogs and inventories all saw positive changes. The subindex for suppliers' delivery times rose to its highest point since April, despite remaining in contractionary territory. The measure for backlogs of work continued its fall from Octobers recent high, but remained in expansionary territory. The subindex for inventories of purchased items rose further into positive territory, but the gauge for stocks of finished goods also rose and returned to expansionary territory.
    4) Behind the good performance was an improvement in business confidence. The gauge for future output expectations rebounded, albeit remaining at a relatively low level in recent years.
    5) Industrial product prices went up. Both the gauges for input costs and output prices rose slightly. Company profitability is likely to improve, as the gauge for output prices returned to expansionary territory.
    
    China's manufacturing economy continued to stabilize in December although the expansion in demand was not as strong as the previous two months. Positive changes included improved business confidence, and strengthened willingness to increase production and inventories, which are beneficial to the job market Subdued business confidence was a major factor behind the economic slowdown this year. As the phase one trade deal between China and the U S. has sent out positive signals, there is room for a recovery in business confidence, which should be able to help stabilize the economy.”
    
    Source : Strategic Research Institute
14. voda 3 januari 2020 16:46

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    Solid Rise in Factory Orders Boosts Production Growth in India at the end of 2019
    
    Following a subdued start to the third quarter of fiscal year 2019/20, the Indian manufacturing industry took a significant step forward during December. With new orders rising at the fastest pace since July, companies ramped up production and resumed hiring efforts. There was also a renewed upturn in input buying. Elsewhere, rates of input cost and output charge inflation accelerated to 13- and 34-month highs respectively. Rising from 51.2 in November to 52.7 in December, the headline seasonally adjusted IHS Markit India Manufacturing PMI® pointed to the joint-strongest improvement in the health of the sector for ten months. However, owing to a weak performance in October and November, the average quarterly reading for Q3 FY19/20 was the lowest since the three months to September 2017. Pollyanna de Lima, Principal Economist at IHS Markit, said "The uptick in Indian manufacturing sector growth signalled by the latest PMI results will be welcomed by policymakers, particularly given the concerning results observed in October. Factories benefited from a rebound in demand, and responded by scaling up production to the greatest extent since May. There were also renewed increases in input purchasing and employment during December. However, a note of caution is evident from the survey's measure of business confidence. The degree of optimism signalled at the end of 2019 was the weakest in just under three years, reflecting concerns over market conditions, which could restrict job creation and investment in the early part of2020. At the same time, price indicators showed accelerated rates of inflation for both input costs and output charges. The latter reflected a combination of improved pricing power, given the favourable demand environment, and efforts to protect margins from cost rises."
    
    Key findings
    Output increases at joint-fastest rate in ten months
    Sales expand at quickened pace
    Renewed rises in employment and input buying
    
    Four of the five sub-components of the PMI increased in December, while suppliers' delivery times was unchanged from the preceding survey period.
    
    At the sub-sector level, growth was led by consumer goods, though intermediate goods also made a stronger contribution to the headline figure. Meanwhile, capital goods remained in contraction.
    
    Indian manufacturing output rose at a marked pace in December, the joint-fastest in ten months. Companies that signalled growth commented on the securing of new work, the successful launch of new products and improved technology.
    
    New work increased solidly, with the pace of expansion picking up to the fastest since July. Where growth was noted, firms reported marketing successes, new product drives and better demand conditions.
    
    The uptick in total sales was supported by higher demand from overseas. New export orders expanded for the twenty-sixth month in a row, albeit modestly.
    Buoyed by strengthening underlying demand, goods producers resumed their hiringefforts in December. The rise in employment reversed the fall noted in November and was the strongest since February. Still, outstanding business rose further.
    
    Firms also increased input buying at the year end, following contractions in each of the prior four months. The rise was only marginal, however, and failed to impact on vendor performance.
    
    Although stocks of purchases continued to decline, the contraction lost strength. In fact, the pace of depletion was only fractional. On the other hand, holdings of finished products decreased sharply in December.
    
    Amid reports of higher prices paid for chemicals, food, metals, paper, plastics and textiles, average cost burdens increased further. Moreover, the overall rate of inflation reached a 13-month high.
    
    In order to protect margins, goods producers lifted their fees again in December. The rate of charge inflation was solid and the quickest in close to three years.
    
    Despite the improvement in operating conditions during December, companies were cautious regarding the year-ahead outlook. On average, production is expected to expand in the coming 12 months, but the degree of optimism weakened to a 34-month low.
    
    Source : Strategic Research Institute
15. voda 3 januari 2020 16:48

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    Output of 8 Core Industries in India Decline in November – IIP
    
    The output of eight core infrastructure industries declined 1.5% in November, the fourth straight month, 5 of 8 sectors coal, crude oil, natural gas, steel, and electricity contracting. The Eight Core Industries comprise 40.27 per cent of the weight of items included in the Index of Industrial Production. The combined Index of Eight Core Industries stood at 126.3 in November, 2019, which declined by 1.5per centas compared to the index of November,2018. Its cumulative growth during April to November, 2019-20 was 0.0per cent. Steel production (weight: 17.92per cent) declined by 3.7 per cent inNovember,2019 over November,2018. Its cumulative index increased by 5.2per cent during April to November, 2019-20 over the corresponding period of previous year.
    
    Coal production (weight: 10.33per cent) declined by 2.5 per cent in November, 2019 over November, 2018. Its cumulative index declined by 5.3 per cent during April to November, 2019-20 over corresponding period of the previous year.
    
    Crude Oil production (weight: 8.98per cent) declined by 6.0 per cent in November, 2019 over November, 2018. Its cumulative index declined by 5.9 per cent during April toNovember, 2019-20 over the corresponding period of previous year.
    
    The Natural Gas production (weight: 6.88per cent) declined by6.4 per cent in November, 2019 over November,2018. Its cumulative index declined by 3.1 per cent during April toNovember, 2019-20 over the corresponding period of previous year.
    
    Petroleum Refinery production (weight: 28.04per cent)increased by3.1 per cent in November,2019 overNovember,2018. Its cumulative index declined by 1.1 per centduring April to November, 2019-20 over the corresponding period of previous year.
    
    Fertilizers production (weight: 2.63 per cent) increased by 13.6 per cent in November, 2019 overNovember, 2018. Its cumulative index increased by 4.0 per cent during April to November, 2019-20 over the corresponding period of previous year.
    
    Cement production (weight: 5.37per cent) increased by 4.1per cent in November, 2019 over November,2018. Its cumulative index declined by 0.02 per cent during April to November, 2019-20 over the corresponding period of previous year.
    
    Electricity generation (weight: 19.85per cent) declined by5.7per cent in November, 2019 over November, 2018. Its cumulative index increased by0.7per cent during April to November, 2019-20over the corresponding period of previous year.
    
    Performance of Eight Core Industries Yearly Index & Growth Rate
    Base Year: 2011-12=100
    
    Zie pdf.
    
    Source : Strategic Research Institute

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16. voda 6 januari 2020 17:04

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    Baowu Group Could Surpass ArcelorMittal as Largest Steel Maker
    
    China's Baowu chairman Mr Chen Derong, in his New Year message, said that “China Baowu successfully reorganized Maanshan Iron and Steel Group in 2019 to achieve actual control over Chongqing Iron and Steel. The group company will achieve crude steel production of 96 million tonnes, and 100 million tonnes of Baowu is just around the corner.”
    
    World's largest steel group ArcelorMittal had produced 92.5 million tonnes of crude steel in 2018.
    
    Source : Strategic Research Institute
17. voda 6 januari 2020 17:06

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    BHP Sees Increased Coking Coal Demand from Indian Steel Sector
    
    Sydney Morning Herald reported that Australian coking iron ore and coal mining giant BHP believes that the long-term trajectory of the emerging economy of India and the acceleration of its steelmaking output could help offset the flattening demand from China feared in the 2020s. Australian exporters of metallurgical coal are increasingly looking to the rapid growth of India's steel sector to help to fill the looming demand gap and cushion the blow. BHP vice-president of market analysis Huw McKay said “BHP's modelling had found China is now in a plateau phase, while demand in other top steel markets Japan and South Korea was also subdued. The mature markets are sort of settling a little bit and India is coming up, filling a gap that would have emerged.”
    
    According to projections from BHP, Indian steelmaking is on course to grow by 7 per cent a year over the 2020s.
    
    China's immense appetite for iron ore and coal helped deliver a windfall to the leading miners in 2019 as well as a timely boost to the Morrison government's federal budget. But the latest industry and government modelling projects Chinese demand to ease in the face of lower margins, a weakening in global growth and the continuing US China trade war.
    
    Source : Sydney Morning Herald
18. voda 6 januari 2020 17:07

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    Iron Ore Mining Lease Expiry in April 2020 Throws Up Risks and Opportunities
    
    Praxis Global Alliance Consultants Mr Kaushal Patel wrote that the Indian mining industry is staring at a major churn as leases for merchant mines expire in April 2020. The merchant mining leases for the ones with 50-70 million tonne per annum production accounting for 25-35 percent of the total iron ore output are set to expire in March 2020, which will put pressure on non-integrated steel plants. 60-70 percent steel producers in India have no captive mines and are dependent on merchant miners for minerals. Considering the capacity that will go off the grid in light of the lease expiry and bidding, significant price pressure is building up for the Indian steel industry
    
    The government is set to auction the mines in January-March 2020, and is also planning to bunch up clearances and award of the leases to minimise disruption in the production. The auction winners may just get to stick on with the approved mining plan and environmental clearance of the previous mine operators for two years till a new company secures clearances. This will help avert a disruption in mining operations during transition. If new operators are not able to bring mine production to full throttle in a short duration, an increase in imports of iron ore cannot be avoided, potentially worsening the current account deficit.
    
    The move will impact a total of 334 mines. Of these, 48 working mine leases contribute significantly to the production of iron, chromite and manganese ores. Most of the working mines whose lease will expire are in Odisha 24, Jharkhand 6 and Karnataka 6. Many non-operative mines are in Goa 184, which has a blanket ban on mining.
    
    Source : Money Control
19. voda 6 januari 2020 17:07

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    Tata Sons Chairman Warns over Port Talbot Steelworks Future
    
    British media reported that as Tata Steel’s UK losses increased to GBP 371 million in 2019 and Tata Steel has warned the steelworks must become self-sustaining or face closure. Tata Sons chairman Natarajan Chandrasekaran in an interview with the Sunday Times said that the company would not continue subsidising a loss-making operation simply to ensure its survival. Mr Chandrasekaran pointedly refused to commit to continue making UK steel but said “I need to get to a situation where at least the plant Port Talbot is self-sustaining. Whether it is in the Netherlands or here, we can’t have a situation where India keeps funding the losses just to keep it going. If you’re not going to be performing, who is going to be interested?”
    
    A spokesman for Tata Steel’s European operations said “What our chairman said in the interview has already been communicated to colleagues through our transformation programme. That programme is about building a stronger and more sustainable European steel business by improving profitability so we can pay for investments necessary to secure our long-term future. The plans include productivity improvements, reduced bureaucracy and increased sales of higher-value steels, as well as employment cost savings.”
    
    The statement comes after the company confirmed it would cut 1,000 steel jobs in the UK.
    
    Tata has owned the steelworks in Port Talbot since paying GBP 6.2 billion to take over the Anglo-Dutch steelmaker Corus in 2007. Port Talbot, in south Wales, produces nearly 5 million tonnes of steel slab per year, and employs about 4,000 workers with many more in its supply chain.
    
    Source : Strategic Research Institute
20. voda 6 januari 2020 17:08

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    Nucor Steel Memphis Breaks Ground for Heat Treatment Unit
    
    Nucor Steel is expanding the company's plant in southwest Memphis. The groundbreaking for the new facility was held on January 2. Nucor Steel is building a 23,000 square foot facility to house new heat treating equipment. Nucor Steel Memphis VP Mr Dave Smith said that heat treatment changes the properties of steel and makes it higher strength, higher hardness or improves the machine ability of it.
    
    Mr Smith said that no incentives have been requested for the latest improvements.
    
    Source : WREQ
21. voda 6 januari 2020 17:09

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    Weak Global Demand for Stainless Steel Pressuring Ferrochrome Prices
    
    South African Ferrochrome producer Merafe Resources recently said the European benchmark ferrochrome price will decrease by 1% in the first quarter of 2020 to USD 1.01 a pound. In the fourth quarter of 2019, price of ferrochrome stood at USD 1.02 per pound. While the new settled price only reflects a 1 US cent decrease, it is now at 2016 lows. In 2019, the European benchmark ferrochrome price declined by 17.8%. The fall was largely driven by weak global demand for stainless steel.
    
    South Africa is the dominant player in the global industry, accounting for about 72% of the world's chrome reserves. According to Merafe Resources, the industry employs about 200 000 people in SA, directly and indirectly through linked industries. Merafe holds a 20.5% interest in the Glencore-Merafe Chrome Venture that operates several ferrochrome plants. The weak demand was partly responsible for the 29% decrease in ferrochrome production by the Glencore-Merafe Chrome Venture for the third quarter of 2019.
    
    Source : Strategic Research Institute