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ED Seeks Supreme Court Stay on NCLAT Order Approving JSW Steel Bid for BPSL

Financial Express reported that India’s Enforcement Directorate has moved the Supreme Court seeking a stay on the National Company Law Appellate Tribunal’s order that approved the JSW Steel’s bid for debt-ridden Bhushan Power and Steel under the new amendment under Section 32(A) to the IBC that provides immunity to the new owners from ongoing criminal proceedings against the erstwhile promoters of the company. Seeking a stay on the appellate tribunal’s decision, the ED, in its appeal, told the SC that BPSL and JSW Steel are associated as shareholders, holding 24.09% and 49% equity, respectively, in a joint venture called Rohne Coal Company, therefore, JSW is a related party of the corporate debtor, and the protection under Section 32A will not be available to it.

The ex-promoters of BPSL are under investigation for diverting INR 4,025-crore bank funds taken as loans. The ED in October last year had provisionally attached BPSL’s assets worth over INR 4,025 crore for diversion of funds by the erstwhile management prior to the commencement of CIRP. Though the attachment was lifted by NCLAT, the ED had then appealed against the order in the SC.

JSW had offered to pay INR 19,350 crore to the financial creditors as part of its resolution plan, a near 60% haircut for the lenders. Apart from this, JSW had offered to pay operational creditors a sum of INR 350 crore against their admitted claims of INR 733 crore. NCLAT had on February 17 upheld NCLT’s decision and ruled that JSW Steel cannot be held responsible for the alleged misdeeds of the past promoters at any stage.

Source : STRATEGIC RESEARCH INSTITUTE
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UAE Extends Ban on Steel Scrap Exports for 4 Months

UAE’s Ministry of Economy has announced the extension of the country’s ban on exports of ferrous and paper waste, aiming to support local steelmakers amid the deteriorating market conditions. UAE’s Ministry of Economy issued a directive to suspend the export of raw materials, in particular steel scrap under the following HS codes 720410, 720421, 720429, 720430, 720441, 720449 and 720450, for another four months from September 17, 2020.

UAE had banned the export of all ferrous scrap products for four months from 15 May. Products banned for export are listed under the HS codes 720450, 720449, 720430, 720429, and 720410, which encompass virtually all possible ferrous scrap export products, and 720421, which is stainless steel scrap.

UAE was the largest single supplier of ferrous scrap to India in 2019, when it dispatched 1.15 million tonne to the country and accounted for 16.35% of all Indian ferrous scrap imports.

Source : STRATEGIC RESEARCH INSTITUTE
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Dalmia OCL Launches Magnesa Carbon Refractory Brick Plant in Odisha

Indian refractory company Dalmia-OCL Ltd has launched a new refractory line for production of Magnesia Carbon, MgO-C bricks, at its Rajgangpur plant in Odisha. It will come up in 3 phases of 36,000 tonne each and will have a final capacity of 108,000 tonne and cater to the demand of domestic steel manufacturers.

With the launch of the new manufacturing line, the company aims to substitute imports with locally manufactured MgO-C bricks and expects to capture 25 percent market share. Subsequently, the company plans to export these bricks to Europe and other key steel markets across the globe. The company has made a cumulative investment of INR 50 crore in the past 2 years and expects its total refractory business to grow by 50% in the next 5 years. Further, Dalmia-OCL plans to make a cumulative investment of another INR 100 crore in the next five years to boost its domestic manufacturing capacity.

Source : STRATEGIC RESEARCH INSTITUTE
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Tata Steel Mining Begins Operations at Sukinda Chromite Mine in Odisha

Tata Steel Mining Limited, formerly known as TS Alloys Ltd, has commenced operations at its Sukinda chromite mine in Jajpur district of Odisha.Three chromite mines of TSML in Jajpur district namely, Sukinda Chromite Mine, Saruabil Chromite Mine and Kamarda Chromite Mine constitute the first commercial leases to be converted into mining leases, across India, among leases expired on March 31, 2020 and auctioned.

These mines were auctioned by the Government of Odisha and the leases are granted for a period of 50 years

TSML is a 100% subsidiary of Tata Steel Limited and is head quartered in Bhubaneswar, Odisha. The Company is working to develop commercial mining opportunities in addition to Ferro Alloys business.

Source : STRATEGIC RESEARCH INSTITUTE
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US DoC Reduces Anti Dumping Tariffs on Oil Pipe Imports from South Korea

The United States has nearly halved its anti-dumping tariffs on oil pipeline products from South Korean steelmakers. The US Department of Commerce has decided to levy a tariff of 4.23 percent to 9.24 percent on South Korean oil pipelines, far lower than the 2018 ruling of up to 18.77 percent. By company, the tariff on pipelines from South Korea's No. 2 steelmaker, Hyundai Steel Co., comes to 9.24 percent, with that on products made by SeAH Steel Corp. reaching 4.23 percent. The anti-dumping duty on products from other South Korean steelmakers stands at 6.74 percent.

The tariff reduction came after the Court of International Trade ordered Washington to readjust its earlier duties in January following complaints from South Korean steelmakers.

Source : STRATEGIC RESEARCH INSTITUTE
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SKF & Deacero in Fee Based Partnership to Improve Rolling Mill Performance

SKF is partnering with Deacero, the Mexican steel manufacturer, to improve performance and reduce downtime at their steel rolling mill in Celaya. The partnership is built on a fee-based set-up covering bearings, bearing remanufacturing, maintenance services and application engineering and tools. By working together to understand the performance of Deacero's rolling mills, bearing service life and machine uptime can be increased, reducing overall maintenance costs and improving the production output and sustainability performance of the mill.

Deacero is the largest steel wire manufacturer in Mexico. They operate 17 production plants and 26 distribution centers in North America.

Source : STRATEGIC RESEARCH INSTITUTE
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SCHMOLZ + BICKENBACH AG Becomes Swiss Steel

Leader in special long steel SCHMOLZ + BICKENBACH AG announced that the shareholders at extraordinary shareholders' meeting have approved the reduction of the nominal share value and the change of name to Swiss Steel Holding AG. The shareholders had their shares represented by the independent proxy in accordance with COVID-19 Regulation. The shareholders approved the reduction of nominal value per share from CHF 0.30 to CHF 0.15. The amount of the nominal value reduction will be used to reduce the capital loss (as per 31 July 2020) resulting from accrued losses. This is in accordance with the invitation to the EGM dated 31 August 2020 as proposed by the Board of Directors and was adopted with a 99.57 % of the votes represented. There will be no distribution of equity to shareholders. This is a technical step, a transfer within equity, which affects all shares equally and shareholders' rights are not affected, neither financial rights nor participation rights.

The change of name from SCHMOLZ + BICKENBACH AG to Swiss Steel Holding AG as proposed by the Board of Directors (having slightly amended its original proposal) was also accepted by the shareholders with a 97.92 % of the votes represented and the Company will immediately apply for registration of the renaming. Stock listing and valor number at Swiss Stock exchange will remain untouched.

Source : STRATEGIC RESEARCH INSTITUTE
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Northwest Pipe to Supply Pipe for Project in Central Oregon

US industry leader of engineered pipeline systems for water infrastructure Northwest Pipe Company was recently selected to supply steel water pipe for an infrastructure modernization project for the Central Oregon Irrigation District. The Smith Rock-King Way Infrastructure Modernization project will convert 7.9 miles of open-ditch irrigation canals into an underground, closed-piped system. The pressurized system will reduce water loss from seepage by an estimated 29.4 cubic feet per second, or 9,392 acre-feet annually. Water saved from the project will pass to the North Unit Irrigation District for agricultural use during the irrigation season. In turn, the North Unit Irrigation District will release an equal volume of water into the Deschutes River from Wickiup Reservoir for fish and aquatic species habitat improvement.

Northwest Pipe Company will manufacture approximately 15,176 feet of both 102- and 108-inch diameter polyurethane lined and coated engineered steel pipe to transport irrigation water in Deschutes County, Oregon. The Company will manufacture over 3,215 tons of pipe for this project.

In addition to improving water conservation, the project will improve water delivery reliability and improve public safety by removing open canals and laterals. Construction is expected to start October 1 and run through April, 2022. Taylor Northwest, LLC, a heavy construction contractor headquartered in Bend, Oregon, is acting as CM/GC.

Source : STRATEGIC RESEARCH INSTITUTE
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ArcelorMittal Italia Reduces Activities at Taranto Plant

ArcelorMittal Italia announced last week that it will halt or reduce activities at several facilities at its Taranto plant.Cold rolling area, galvanizing line No 1 and the pickling line will be idled indefinitely, while other plants will have their weekly shifts reduced. Local metal unions commented All of this is caused by a drop in orders that will result in cascading staff reductions across all operating and maintenance facilities."
Local union UILM said "The new stops and reductions in plant activity communicated by ArcelorMittal are yet another provocative act towards workers and trade unions. In recent days, the company has accelerated actions that have no economic and organizational justifications. ArcelorMittal must be sent away for nor not fulfilling the contract and both economic and environmental terms, and because it continues to destroy a territory and the plants, putting at risk the health and safety of workers and citizens."

Source : STRATEGIC RESEARCH INSTITUTE
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ArcelorMittal Brasil to Restart BF 3 at Tubarao Mill in October

ArcelorMittal will restart the 2.8 million tonne per annum blast furnace No3 at its Tubarão mill in the in mid October, which has been idle since March due to an unfavorable economic scenario resulting from the COVID-19 pandemic. The company said that “Resuming BF activity is a strategic decision in the face of an apparent recovery in economic activity. Although it is still early to evaluate following scenarios, including if there will be a resumption of activity and if it will be sustainable, the company wants to be ready for larger and quicker increased operational flexibility.”

After restarting this remaining idled capacity, the company will have Tubarao's nealy 7 million tonnes per year of furnace capacity available, since BF No 2 resumed operations in July. However the three BFs there will operate at reduced capacity aimed at supplying customers that gradually resume consumption, and as a way to ensure the operational optimization of the complex.

Restrictions to curb the spread of Covid-19 in Brazil reduced steel demand and led to mills halting some of their blast furnaces from late March. At the peak Covid-related shutdowns, Brazilian steel industry had 13 idle blast furnaces.

Source : STRATEGIC RESEARCH INSTITUTE
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Chromium Crucible Steel was First Made in Persia 900 Years Ago

For more than a century, evidence for the production of crucible steel in Central and Southern Asia, prior to the European Industrial Revolution, has fascinated and challenged material scientists, historians and archaeologists. At the same time, chromium-alloyed stainless steel was developed in the early 20th century, building upon 19th century experiments with low chromium steel. Now, however, academics have revealed that medieval Persians were using the element in steel alloys to give their weapons a cutting edge almost a millennium before the likes of Harry Brearley, the metallurgist behind stainless steel.

A team led by Dr Rahil Alipour, of the Institute of Archaeology at University College London, studied metal particles from the steelmaking centre of Chahak, in Fars province, southern Iran. The particles were dateable from their context to the 11th-12th centuries. They discovered that the steel which was produced there in small crucibles contained a consistent chromium content of about 1 per cent.

Dr Rahil Alipour said: "Our research provides the first evidence of the deliberate addition of a chromium mineral within steel production. We believe this was a Persian phenomenon. This research not only delivers the earliest known evidence for the production of chromium steel dating back as early as the 11th century CE, but also provides a chemical tracer that could aid the identification of crucible steel artefacts in museums or archaeological collections back to their origin in Chahak, or the Chahak tradition."

A contemporaneous crucible steel flint striker held in the Tanavoli Collection is reported to also contain chromium, suggesting its origin from Chahak. The mysterious compound rusakhtaj from Biruni's recipe for crucible steel making refers to the mineral chromite. Additional historical sources up to the mid-2nd millennium CE refer to crucible steel from Chahak as being particularly brittle, consistent with its increased phosphorus content.

Chahak is described in a number of historical manuscripts dating from the 12th to 19th century as a once famous steel production centre, and is the only known archaeological site within Iran's borders with evidence of crucible steel making. The manuscript al-Jamahir fi Marifah al-Jawahir, A Compendium to Know the Gems, 10th-11th CE, written by the Persian polymath Abu-Rayhan Biruni, was of particular importance to the researchers given it provided the only known crucible steel making recipe. This recipe recorded a mysterious ingredient that they identified as chromite mineral for the production of chromium crucible steel. While Chahak is registered as a site of archaeological importance, the exact location of crucible steel production in Iran remained a mystery and difficult to locate today, given numerous villages in Iran are named Chahak.

The team used radiocarbon dating of a number of charcoal pieces retrieved from within a crucible slag and a smithing slag, by-products left over after the metal has been separated, to date the industry to the 11th to 12th century CE. Crucially, analyses using Scanning Electron Microscopy enabled them to identify remains of the ore mineral chromite, which was described in Biruni's manuscript as an essential additive to the process. They also detected 1-2 weight percent of chromium in steel particles preserved in the crucible slags, demonstrating that the chromite ore did form chromium steel alloy.

Source : STRATEGIC RESEARCH INSTITUTE
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voestalpine Starts Continuous Caster 4 at Donawitz Plant

The voestalpine Metal Engineering Division produces high-grade steels at its site in Donawitz, for processing into special rails for railway infrastructure, premium wires for the automotive industry, and high-quality seamless tubes for oil & gas exploration. The start-up of a new, fully automated continuous caster will allow the Group to further increase the quality of the steel grades which are used in the manufacture of highly advanced end products. The state-of-the-art facility represents an investment volume of around EUR 90 million and has an annual production capacity of one million tons.

The new continuous caster CC4 at the site in Donawitz, replacing the existing facility which has been in service for over 40 years, allows voestalpine to immediately start manufacturing even higher purity steels with optimal surface properties. Consequently, cracks caused by extreme stresses on the rail surfaces, for example, can be prevented through the use of homogenous material structures.

The CC4 is the new heart of steel production at Donawitz and fully complies with all Industry 4.0 standards. It effectively permits the fully automated production, handling, and loading of the blooms.

The facility is designed to produce a wide portfolio of products, including rail steels, steels for seamless tubes and cold forming, and ball bearings and spring steels in super clean quality. The fully automated temperature control ensures optimal solidification conditions, while a large number of electromagnetic stirrers guarantee the absolute homogeneity of the material structure. CC4 reaches casting speeds of up to 1.7 meters per minute and an annual production capacity of one million tons.

The Railway Systems business unit of the voestalpine Group’s Metal Engineering Division is the global market leader in railway infrastructure systems and signaling technology.

Source : STRATEGIC RESEARCH INSTITUTE
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JSPL Says All Transactions were Routine Business Activities

Jindal Steel & Power Limited informed BSE “This is with reference to the report published in The Indian Express dated September 21st, 2020 on certain transactions undertaken by JSPL between the years 2014-16. The Company hereby clarifies that all transactions entered into by the Company were part of routine business activities and all the transactions had proper underlying assets. The Company had fully complied with all the extant regulatory guidelines at the time of these transactions. JSPL does business transactions with numerous traders who buy steel & pellets from the Company, as well as supply raw materials to the Company. All such transactions are done strictly within the required legal framework and as per the law of the land. As a responsible corporate house, we adhere to all legal requirements strictly.”

According to a report in Financial Express, 3 different Suspicious Activity Reports filed by Deutsche Bank Trust Company Americas with US Financial watchdog FinCEN regarding funds received and sent by Jindal Steel and Power Ltd red-flag a transaction pattern where it sent money to companies based in Mauritius, Germany, and the UK, and received funds from companies based in Dubai and Switzerland within the same set of days by

The Indian Express has revealed that “Between November 24, 2014 and January 28, 2015, JSPL sent USD 1.799 million to Trans Global Minerals and Metals Corporation, a company incorporated in Cyprus in 2006 with a registered address in Mauritius, and also sent USD 1.3 million to Germany based Oceanwide Services GmbH. During the same period, JSPL received USD 1.323 million from Dubai-based Power Plant EPC Ltd. In a similar set of transactions, between April 27, 2015 and June 1, 2015, while JSPL sent USD 4.53 million to TGMM and another USD 321,209 to Singapore-based Western Bulk Pte Ltd, the company received USD 2.48 million from Dubai-based Power Plant EPC within the same period. A year later, a similar transaction pattern was seen. Between June 23, 2016 and October 26, 2016, JSPL sent USD 9.48 million to TGMM; USD 1.83 million to Singapore-based CBMM Asia Pte Ltd between May and September 2016; USD 1.52 million to Navalmar (UK) Ltd between May 31 and October 24, 2016. And JSPL received USD 16.8 million from Switzerland-based Trans Global AG between June 27 and July 21, 2016.”

Source : STRATEGIC RESEARCH INSTITUTE
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JFE Steel Restarts Blast Furnace No 4 at Fukuyama Plant

Japanese steel maker JFE Steel has restarted the blast furnace No4 at its Fukuyama steel works. The Fukuyama BF No 4 was restarted a month ahead of an expected resumption by late October, with the blowing-in of the BF carried out on 26 August. The BF was shut on 20 June as part of JFE's measures to weather weakened demand caused by the Covid-19 pandemic and a subsequent manufacturing slowdown. The strong rebound in car production in the country, has led to boosted demand for steel. However, the construction sector continues to struggle, mainly on account of ongoing delays and cancellation of building development projects.

JFE also closed the BF No.4 at Kurashiki on 25 April as part of the Covid-19 response and has brought forward refurbishment work originally planned for 2021.

Source : STRATEGIC RESEARCH INSTITUTE
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ANDRITZ Herr-Voss Stamco Commissions CTL Line at Rolled Alloys in USA

ANDRITZ Herr-Voss Stamco Inc has successfully commissioned a new cut-to-length line delivered to Rolled Alloys for their facility in Fairfield at Ohio in USA. The state-of-the-art line processes 0.125” x 48” wide stainless steel and nickel alloys and has an incoming coil capacity of 20,000 lbs. The line includes two Precision Levelers, both with the Punch-N-Go leveler control system. The equipment was designed to meet Rolled Alloys’ specific product requirements, which include the processing of high-strength nickel alloys. The line comprises a precision roll feed system coupled with a high-speed shear that can cut both long and short blanks with high efficiency and extreme accuracy. In addition, the line allows for the application of paper or vinyl to the leveled material.

Callery Panselvania based ANDRITZ Herr-Voss Stamco Inc is a leading supplier of coil processing services and solutions, including field service, rebuild and retrofit, tension leveling, the pit-less Strand Extensioner slitting process, HS2T High-Strength Slitting Technology, cut-to-length, multi-blanking, and precision roller-leveling equipment.

Source : STRATEGIC RESEARCH INSTITUTE
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GMS Market Commentary on Shipbreaking in Week 39 - Peaking Out

Following the catastrophic falls of around USD 150/LDT during the second quarter of the year and with all subcontinent markets now securing tonnage at increasing numbers of late, the 2020 subcontinent recovery seems nearly complete. There are some concerns over whether prices will keep going up and there are even rumors that the Bangladesh Ship Breakers Association may try to form another cartel next week, in order to put a cap on prices, which a majority of local Recyclers feel are getting over-inflated once again. Indeed, there is the feeling that Pakistan has reached its peak, whilst India has endured some shaky steel prices once again, briefly stalling some of the progress made by this market in recent weeks. Therefore, there are some doubts from veteran players as to whether the industry will witness USD 400/LDT or close levels on standard, non specialist tonnage any time soon.

Finally, the Turkish market continues to coast for yet another week, with levels steady, plate prices on even keel, and the occasional arrival of another unit for EUSRR recycling.

Meanwhile, the world has been witnessing a second wave of Covid infections, particularly across parts of Europe where there are now increasing fears of a second lockdown. This comes as at a time when India continues to struggle with record daily cases nearing 100,000 infections, with few signs that this virus is going away any time soon.

With more tonnage starting to be seen for recycling, particularly larger LDT VLOCs of late, it is set to be a busv end to the year in all sub-continent locations.

Source : STRATEGIC RESEARCH INSTITUTE
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Tata Steel Manager Dies in Accident at HDG Line at Jamshedpur Plant

Jamshedpur’s Avenue Mail reported that Tata Steel’s senior manager operations CRM at Jamshedpur Steel Works Mr Sheeraz Zama Khan died in a mishap on Tuesday morning. Aged 27, Sheeraz Zama Khan was in the C-shift duty and got entrapped in the exit looper of the galvanizing line and lost his life. According to information, the victim was attending to a fault in the line. Tata Steel has started investigation into the mishap and the area around the accident has been cordoned off.

Bistupur police station in-charge Mr Ranvijay Sharma said a detailed investigation is on.

Tata Steel’s chief of corporate communications Mr Kulvin Suri said “The family of Sheeraz Zama Khan has been informed and the company expresses deep sense of grief and stands by the family in this difficult moment in time. The family will receive all support as per the Company’s policy. Tata Steel is committed to the health and safety of its employees and continuously strive towards ensuring a safe workplace for all its employees.

Source : STRATEGIC RESEARCH INSTITUTE
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UPG Enterprises Acquires Lexington Steel Corp

Chicago based UPG Enterprises LLC has completed the acquisition of Lex Holding Co. The acquisition includes two well-known brands, Lexington Steel Corp, a full-line distributor of flat rolled steel products based in Chicago and Douglass Logistics Inc, the affiliated steel logistics division of Lexington Steel. Lexington Steel, founded in 1968, offers a myriad of services including slitting, cut-to-length, toll processing, logistics, packaging, shipping, and warehousing.

The acquisition of Lexington Steel strategically expands the geographical footprint of UPG's Midwest metals service center business further into the Wisconsin, Minnesota, Iowa, and Missouri markets. With the addition of Lexington Steel to its family of companies, UPG's North American flat roll service center operations now process and distribute out of 10 facilities with over 200 trucks delivering quality products on time to over 5,000 customers.

Source : STRATEGIC RESEARCH INSTITUTE
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Corinth Pipeworks Achieves Net Zero Carbon

Corinth Pipeworks announced that it is 1st steel pipe manufacturer for the energy sector, globally, whose operations have net zero carbon emissions, ISO 14064 GHG scope 1 & 2. The company is aiming for carbon neutral operations within 2020 in support of the Paris Climate Agreement and the UN Sustainability Goals. Corinth Pipeworks will implement important initiatives for a low carbon future by exclusively using green electricity.

The company has signed an agreement with the Public Power Corporation, a leading power generation and supply company in Greece to ensure 100 per cent of its electricity needs originate from renewable energy. The agreement concerns the year 2019 and its steel pipe manufacturing facility in Thisvi, Greece, supplying pipes to the oil and gas and construction sectors.

Additionally, Corinth Pipeworks will continue to improve its energy efficiency with an energy management system certified according to ISO 50001:2011.

The company will also follow initiatives to reduce the remaining portion of its energy consumption to reduce and offset its carbon footprint.

Corinth Pipeworks said the pathway to being carbon neutral will include the implementation of management system for quantification and reporting of greenhouse gas (GHG) emissions according to international standard ISO 14064:2018, the planning and implementation of carbon reduction actions and eventually, the “carbon neutral” certification (GHG scope 1 & 2).

Source : STRATEGIC RESEARCH INSTITUTE
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Canada Starts Anti Duping Probe on Rebar Imports from Algeria, Egypt, Indonesia, Italy, Malaysia, Singapore & Vietnam

The Canada Border Services Agency has initiated an investigation on September 22, 2020, under the Special Import Measures Act respecting the alleged injurious dumping of certain concrete reinforcing bar from the People’s Democratic Republic of Algeria, the Arab Republic of Egypt, the Republic of Indonesia, the Italian Republic, the Federation of Malaysia, the Republic of Singapore and the Socialist Republic of Vietnam. The investigation follows a complaint filed by AltaSteel Inc, ArcelorMittal Long Products Canada and Gerdau Ameristeel Corporation

The subject goods are defined as “Hot rolled deformed steel concrete reinforcing bar in straight lengths or coils, commonly identified as rebar, in various diameters up to and including 56.4 millimeters, in various finishes, excluding plain round bar and fabricated rebar products, originating in or exported the People’s Democratic Republic of Algeria, the Arab Republic of Egypt, the Republic of Indonesia, the Italian Republic, the Federation of Malaysia, the Republic of Singapore and the Socialist Republic of Vietnam.”

The subject goods are usually classified under the following tariff classification numbers:
7213.10.00.00
7214.20.00.00

In some instances, imports of the subject goods may also be classified under the tariff classification numbers:
7215.90.00.90
7227.90.00.90

Source : STRATEGIC RESEARCH INSTITUTE
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