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JSW Steel Consolidates Coal Operations in US

Strategic Research Institute
Published on :
06 Dec, 2021, 5:21 am

JSW Steel announced that as part of overall efforts to restructure and consolidate its US Coal operations and holding structure, the following step-down subsidiary companies of the company operating at West Virginia in USA have been merged with their respective holding companies effective December 2, 2021

Keenan Minerals LLC, RC Minerals LLC and Peace Leasing LLC with its Holding Company Purest Energy, LLC

Periama Handling LLC and Rolling S Augering LLC with its Holding Company Planck Holdings LLC

Prime Coal LLC with its Holding Company Periama Holdings LLC

The restructuring and consolidation exercise does not entail any sale of the assets & investments and JSW Steel continues to have the same economic interests in its operations in US. The turnover of all the merged entities is nil for the year ended March 31, 2021.
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Metalloinvest Becomes World Leader in Iron Ore Reserves

Strategic Research Institute
Published on :
06 Dec, 2021, 5:23 am

Following an evaluation of its iron ore reserves in accordance with international JORC 2012 standards, Russian miner & steel maker Metalloinvest has determined that its economically recoverable iron ore reserves amount to 15.4 billion tonnes, as of 1 January 2021. Metalloinvest CEO Mr Nazim Efendievsaid “The new reserve estimate indicates that Metalloinvest has become the world leader in terms of the size and life cycle of iron ore reserves among all mining and metallurgical companies. Over the 11 years since the previous assessment of reserves, our enterprises have produced around 1.7 billion tonnes of iron ore. Even though international iron ore standards have significantly tightened, we have managed to grow our reserves to become the largest in the world thanks to additional exploration of deposits, new geological models, improved planning of mining operations, improved quality of commercial products and the development of oxidised quartzite enrichment technology.”

The assessment was carried out with the involvement of a leading international consultancy-verifier, the British company SRK. The Competent Person's Report on Mineral Reserves and Resources CPR has been approved.
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China Plans to Recycle 320 Million Tonnes of Steel Scrap by 2025

Strategic Research Institute
Published on :
06 Dec, 2021, 5:25 am

China’s Ministry of Industry and Information Technology has released a plan for the green development of its industrial sectors during the 14th Five-Year Plan period 2021-2025. According to the plan, by 2025, significant progress will have been made in the green and low-carbon transformation of China's industrial structure and production, with technologies and equipment for green development widely applied & efficiency in energy and resource utilization will be greatly enhanced and green development in the manufacturing sector will improve further by 2025, laying a solid foundation for the peaking of carbon emissions in industrial sectors by 2030. China aims to lower its carbon dioxide emissions by 18% and the energy intensity of its major industrial firms by 13.5% per unit of value-added industrial output by 2025. The intensity of major pollutant emissions in key sectors will be reduced by 10%. The plan rolls out specified measures and eight major projects to advance improvements in industrial sectors in terms of industrial upgrades, energy consumption with low-carbon emissions, and the recyclable use of resources, among other areas. It calls for efforts to curb the blind expansion of projects with high energy consumption or high emissions, enhance the utilization of industrial solid waste, and accelerate the improvement of green and low-carbon technologies.

The plan proposes to implement technical and equipment transformations such as fine desulfurisation of coke oven gas, high-proportion pellet smelting, negative pressure distillation of coking, and optimisation of the entire coking process. By 2025, China is expected to complete the ultra-low emission transformation for 530 million tonnes of steel capacity and the clean production transformation for 460 million tonnes of coking capacity.

In the column of “Efficient Resource Utilisation Promotion Project", the recycling of renewable resources is mentioned. China will build large-scale integrated centres for the environmental friendly sorting, treatment, and distribution of iron & steel scrap. Plan puts forward certain goals for the recycling and utilisation of renewable resources in 2025. As of 2025, China will strive to recycle and re-use 320 million tonnes of steel scrap.
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Vale Lowers Iron Ore Production Guidance

Strategic Research Institute
Published on :
06 Dec, 2021, 5:30 am

Brazilian mining giant Vale SA has lowering its iron ore production guidance for this year and issuing a lower-than-expected projection for next year. Vale now expects to produce 315-320 million tonnes this year, compared with previous guidance of 315-335 million tonnes. Next year, Vale anticipates 320 million tonnes n to 335 million tonnes

The Rio de Janeiro-based company recovery from an early-2019 tailings dam collapse that led to a series of cutbacks makes it a major swing factor on the supply side. Monday’s guidance may support a recent rebound in iron ore futures amid optimism over restocking by Chinese mills.

Vale is looking to expand its annual production capacity to 400 million, which could make it the world’s No. 1 iron ore producer once again, a title it lost to Rio Tinto Group in the wake of the Brumadinho dam disaster. In September, Vale postponed the capacity goal from 2022 to “medium term” partly because of sluggish permitting in northern Brazil.
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Researchers Improve Corrosion Resistance with Ni Co Cu Coating

Strategic Research Institute
Published on :
07 Dec, 2021, 4:58 am`

Due to its decent mechanical qualities and low cost, high-strength carbon steel is frequently employed in maritime engineering. However, its low corrosion resistance in even moderate operating settings restricts its applicability. Corrosion may reduce load-bearing capacity by lowering its overall size or by pitting, resulting in massive economic losses and accidents. Preservative coating or lamination is the most widely used anti-corrosive technology among contemporary corrosion prevention technologies, which include cathodic shielding, anti-corrosive materials, and coating. One of the most industrially feasible and cost-effective processes for producing metallic, alloy, and metal matrix nanoscale composite coatings is electrodeposition. Nickel is a popular type of electroplating metal. Primary drawbacks of electrodeposited Ni include its poor firmness and limited resistance to wear.

Chinese researchers in an article published in the journal Materials Chemistry and Physics described a unique method of improving the anti-corrosive properties of carbon steel. In this study, the super-hydrophobic Ni–Co/Cu composite coating was fabricated on carbon steel substrate by electrochemical deposition, chemical oxidation and surface modification. Their surface morphologies, structures and wetting properties were studied by SEM, XRD and contact angle measurements. The results shows that the as-prepared coating has super-hydrophobic property with a water contact angle of 158.61 degrees. After the immersion test in seawater for 350?h, the super-hydrophobic Ni–Co/Cu composite coating shows a good durability of the hydrophobic property. The electrochemical tests indicate that the as-prepared super-hydrophobic coating exhibits excellent corrosion protection for carbon steel compared with Ni–Co and Ni–Co/Cu coating. This study developed a novel approach to improve the corrosion resistance of carbon steel.

Researchers have created Ni-based nanoscale composite coatings, such as Ni-CeO2 coating, to increase the performance of nickel coatings. Making numerous alloy coatings is another way to improve the performance of Ni coating. Because of its great wear and corrosion resistance, the nickel-cobalt alloy layer created via electrochemical deposition is critical for protecting carbon steel. Ni-Co alloy coatings are also more corrosion resistant than Ni coatings. The inclusion of cobalt atoms causes a deformation of the solid solute framework and a decrease in porosity, which increases the coating's corrosion resistance. However, the presence of defects such as pinholes and hemp points calls for further enhancement of the surface quality and anti-corrosive behavior of nickel-cobalt coatings. Ni-Co ultra-hydrophobic lamination has piqued the curiosity of many in recent years due to its ability to prevent corrosive media from penetrating and provide superior corrosion protection. It is generally recognized that the most important variables in forming a super-hydrophobic surface are unique nanostructures and minimal surface energy. By altering the surface using organic compounds such as 1-dodecanethiol and silane, low surface energy may be readily achieved.

The researchers used electrodeposition, chemical oxidation, and surface adjustment to create an ultra-hydrophobic Ni-Co/Cu nanocomposite lamination that can be applied on carbon steel surfaces. Scanning electron microscope, X-ray diffraction and water contact angle assessments were used to investigate the surface properties, structures, and wetting characteristics. Results showed that the water contact angle had increased to 158.61°, indicating an ultra-hydrophobic character.

The Ni-Co/Cu ultra-hydrophobic lamination was created on a carbon steel substrate using a two-step electroplating process and dodecanethiol modification to increase corrosion resistance. The findings demonstrated that this approach might increase the protective capacity of Ni-Co coatings by inhibiting hostile media from contacting the substrate, confirming the technology's appealing practical potential in maritime environments. This technology offers a novel way to enhance the effectiveness of Ni-Co coatings.
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GMS Market Commentary on Ship Breaking in Week 48

Strategic Research Institute
Published on :
07 Dec, 2021, 5:04 am

World's leading cash buyer of ships for recycling GMS said that “The recycling markets remained subdued this week again, with very few serious transactions to note as price and demand have taken a serious hit over recent weeks. Indian steel plate prices have declined by well over USD 60/LDT, leaving the Alang market lagging seriously behind its regional competitors, whilst both Pakistan and Bangladesh remain tentative in submitting fresh offers as they watch India’s ongoing decline. As such, there have been very few new candidates to consider as Vessel Owners themselves have decided to take a step back from recycling any eligible units, perhaps hoping for freight markets to pick up again going into 2022.”

GMS said “Currencies continue to be of concern, both in Turkey and even in Pakistan, where the PKR reportedly depreciated by about 1.5% since November 20th. This has led to minimal buying interest from Gadani Recyclers on the marginal number of vessels currently available and working firm.”

GMS added “Crew changes too are becoming an issue once again, as the Omicron Covid-10 variant sweeps the world and ports are gradually closing their borders for international travel, crew changes, foreign crews arriving for take over.”

GMS said “Lastly, the Turkish market was the only one, where, despite a collapsing Lira and a minor downward adjustment in import steel, the Aliaga market overall remained cautiously steady this week. Taking all of the above into account, it may therefore be a quieter end to the year in the recycling markets and all will be hoping for a rejuvenated appetite to buy, in addition to firming prices, as 2022 comes around.”

GMS Pricing

India/Bangladesh/Pakistan – Week 48, Unchanged

Dry Bulk – USD 560-600 per LDT

Tankers - USD 570-610 per LDT

Containers - USD 580-620 per LDT
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Metinvest Reports 78% YoY Surge in Revenue in 9 months of 2021

Strategic Research Institute
Published on :
07 Dec, 2021, 5:06 am

Ukrainian steel maker Metinvest announced that Financial highlights its total revenues in January-September 2021 increased by 78% YoY to USD 13,562 million as external revenues of each segment rose by 78% YoY & segmental shares of total revenues remained flat YoY. Adjusted EBITDA' quadrupled YoY to USD 6,102 million with metallurgical EBITDA rising by 5.6x to USD 2,781 million & mining EBITDA growing by 3.9x to USD 3,763 million

Metinvest’s metallurgical sales increased by 78% YoY mainly attributable to higher average selling prices for steel products in line with global benchmarks, greater shipments of finished steel products, up 9%, as a result of demand recovery in several strategic markets for the Group, and recent investments at the Mariupol steelmakers

Its mining sales also increased by 78% YoY amid higher iron ore selling prices and pellet premiums globally, as well as greater pellet shipments up 28%.
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COFECE Approves Gerdau Business Restructuring in Mexico

Strategic Research Institute
Published on :
07 Dec, 2021, 5:09 am

Brazilian steelmaker Gerdau announced that with Mexican antitrust authority COFECE approval for business restructuring, it has completed the business restructuring of its Mexican operations. As a result of the business restructuring, Gerdau now owns 75% of Gerdau Corsa, while Grupo Cordova owns the remaining stake. The Grupo Cordova is made up of a joint venture between Corcre and investor Juan Angel Cordova Creel. Gerdau said the company’s restructuring will simplify its corporate structure in Mexico to strengthen the financial profile of Gerdau Corsa, reduce its financial leverage and expenses, while also combining its key activities for greater efficiency and synergy.

Gerdau owns Sidertul, Aceros Corsa and Gerdau Corsa, all located in Mexico. Under the terms of the new business restructuring in Mexico, Gerdau merged Sidertul, Aceros Corsa and Gerdau Corsa into a single company: Gerdau Corsa.
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Steel Producers Committee Launched in UAE

Strategic Research Institute
Published on :
07 Dec, 2021, 5:11 am

UAE’s Steel Producers Committee was launched on the sidelines of the Middle East Iron & Steel Conference. The Steel Producers Committee has been formed to represent steel makers and associated businesses at ministries and local entities across the UAE in efforts to pro-actively improve productivity and the performance of its members with the intention of helping them reach their full growth potential and business targets, while resolving any issues that may occur in the future and introducing any relevant investment services or integrated infrastructure to its members locally and internationally.

Amongst its objectives, the SPC will examine, adapts and improves the rules, regulations and policies in force that are beneficial for SPC members, and provide fair, balanced and satisfactory solutions for all stakeholder concerns to strengthen relations between steel makers inside and outside the UAE.

To improve productivity and the performance of its members, it will organize a series of workshops and training programs, regularly issue publications and guidelines on relevant topics with the latest updates on steel news, and provide a wide range of e-learning resources and e-library data-sets packed with information on the steel industry.

The committee is made up of 15 industry leaders who are committed to boosting Emiratisation within the steel industry to meet federal targets, and will be providing the necessary training and learning experiences for UAE nationals to forge a career in the industry.

Under the Steel Producers Committee, there are five sub-committees dedicated to steel manufacturing processes, including pipes and tubes, coated steel coils, reinforced steel bars, wire rod steel coils, raw materials, and steel sections.
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Hoa Phat Starts Construction of Home Appliance Plant in Ha Nam

Strategic Research Institute
Published on :
07 Dec, 2021, 5:13 am

Viatnamese steel maker Hoa Phat Home Appliance Joint Stock Company has started its construction on the first home appliance production plant in Hoa Mac Industrial Park in the northern province of Ha Nam. The plant is expected to be completed its construction within five months. Covering an area of 14 hectares, the plant would produce air coolers, water purifiers and air purifiers with a capacity of about one million products a year. The Hoa Phat Home Appliance Joint Stock Company has made big investment in modern and methodical production lines from the very beginning to produce high quality products with modern, diversified designs and competitive prices.

In the fourth quarter of 2021, Hoa Phat Group has established the Hoa Phat Home Appliance Joint Stock Company, making a large and methodical investment in the home appliance industry on the basis of its 20 years of experience in developing the refrigeration industry. This is a step to anticipate the wave of production shifting from China to Vietnam. The Hoa Phat Home Appliance Joint Stock Company aims to become the largest household appliance manufacturer in Vietnam with a revenue of US$1 billion from this segment by 2030.

In parallel with the rapid deployment of new factories, Hoa Phat Group give priorities in research and development of high-quality refrigeration and household product that meet international standards to promote exports.
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voestalpine Listed in Dow Jones Sustainability Index Europe

Strategic Research Institute
Published on :
07 Dec, 2021, 5:14 am

Austrian steel maker voestalpine has been listed on the renowned Dow Jones Sustainability Index Europe for the first time and is the only European steel company to be awarded this honor. The Dow Jones sustainability indices are the most respected worldwide, only including companies judged to be leaders in their industries according to long-term economic, ecological, and social criteria. The voestalpine Group is now included in two sustainability indices following its listing in the FTSE4Good two years ago.

voestalpine has actively lived up to its economic, social, and ecological responsibilities for many years. The company supports the UN Global Compact, the world’s largest and most important corporate responsibility initiative, and takes part in industry initiatives including ResponsibleSteel with its focus on sustainable steel production.

To reflect the growing importance of sustainability as an issue, in 2021 the Group agreed on a new sustainability strategy which defines the company’s quantitative and qualitative goals for contributing to a better and more secure future. One of the key goals is climate protection. voestalpine is committed to the climate goals, and “greentec steel” is its clear plan for decarbonizing steel production: a hybrid technology would allow carbon emissions to be reduced by around 30%. Over the long term, the Group’s goal is to successively increase the use of green electricity and green hydrogen in steel production, to achieve carbon neutral production by 2050.

The DJSI Europe is part of the Dow Jones family of sustainability indices. It includes the top 20% of the 600 largest European companies in the S&P Global Broad Market IndexSM, who are leaders in the sustainability sector. This year, 147 companies succeeded in being included in the DJSI Europe.
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US Steel Production Capacity Utilization Slips to 82% in Week 48

Strategic Research Institute
Published on :
07 Dec, 2021, 5:16 am

AISI announced that in the week ending on December 4, 2021, domestic raw steel production was 1,807,000 net tons while the capability utilization rate was 81.9 percent. Production was 1,616,000 net tons in the week ending December 4, 2020 while the capability utilization then was 73.1 percent. The current week production represents an 11.8 percent increase from the same period in the previous year. Production for the week ending December 4, 2021 is down 1.6 percent from the previous week ending November 27, 2021 when production was 1,837,000 net tons and the rate of capability utilization was 83.2 percent.

Adjusted year-to-date production through December 4, 2021 was 88,081,000 net tons, at a capability utilization rate of 81.6 percent. That is up 19.6 percent from the 73,669,000 net tons during the same period last year, when the capability utilization rate was 67.8 percent.

Broken down by districts, here’s production for the week ending December 4, 2021 in thousands of net tons

North East: 164

Great Lakes: 618

Midwest: 201

Southern: 748

Western: 76

Total: 1807
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Tenaris Dalmine Pipe Mill Expanion Lowers Carbon Emissions

Strategic Research Institute
Published on :
07 Dec, 2021, 5:18 am

Tenaris’s facility in Dalmine in Italy has recently completed an important investment of over EUR 20 million to expand the range of its medium-size rolling mill in order to produce larger diameters, from 16” to 18 5/8” (473 mm), reducing its carbon footprint with a more streamlined manufacturing process.

Before the investment, larger diameter pipes had to undergo a secondary rolling process at the facility’s expander mill. The manufacturing process can now be completed fully at the medium-size hot rolling mill, enhancing energy efficiency by eliminating the additional step of reheating the pipes in the expander mill. Thanks to lower natural gas and electricity consumption, this investment reduces CO2 emissions by 7,000 tons per year. Additionally, the streamlined process generates lower scale production, less water consumption, air emissions and reduced internal transportation and fuel consumption.

With the investment, Tenaris can produce OCTG, line pipe, gas cylinders and large vessels in the larger diameter sizes, as well as mechanical, thermal, and process applications, tubular bends and pipe fittings.
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ISSDA Calls for Restoring of CVD on Stainless Steel Imports

Strategic Research Institute
Published on :
07 Dec, 2021, 5:21 am

PTI reported that Indian Stainless Steel Development Association has urged the Indian government to restore the countervailing duty on stainless steel products from China and Indonesia in the upcoming Union Budget. ISSDA President Mr KK Pahuja said "The current market buoyancy is hiding the larger issue of import dependency, which goes against the Aatmanirbhar vision of Prime Minister and has long term implications. If prescribed trade remedies, imposed after laid down quasi-judicial procedures, are suddenly withdrawn, it creates huge policy uncertainty and adversely affects business sentiment. We hope government will take note of import surge and restore both the CVDs in the forthcoming Budget.”

ISSDA said “The decision to suspend the CVD in Union Budget 2021-22 has led to a surge in imports from Indonesia and China. The imports are being largely driven by Chinese companies operating from Indonesia, which got a boost after the suspension of CVD in February 2021.”
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Nucor to Build Rebar Micro Mill in South Atlantic Region

Strategic Research Institute
Published on :
07 Dec, 2021, 5:25 am

Nucor Corporation announced that its board of directors has approved the construction of a rebar micro mill, with spooling capabilities, to be located in the South Atlantic region. This will be Nucor's third rebar micro mill, joining its existing micro mills in Missouri and Florida, both of which began operations in 2020. The budgeted capex for the new micro mill is USD 350 million. It will have an annual capacity of 430,000 tons. Nucor President & Chief Executive Officer Mr Leon Topalian said "We have recently executed two successful rebar micro mill start-ups and believe the East Coast market will be in need of additional rebar supply in the coming years, particularly with the recent passage of the infrastructure spending bill. Rebar has been a core business for Nucor since we got into steelmaking and this project will enable us to maintain our leadership position in the rebar market."

The rebar market is expected to show continued strength. Most of the rebar used in the US is produced domestically, and rebar imports have decreased in recent years due to strong trade enforcement. Nucor has 15 bar mills strategically located across the United States that manufacture a broad range of steel products, including concrete reinforcing bars, hot-rolled bars, rounds, light shapes, structural angles, channels, wire rod and highway products in carbon and alloy steels.
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GFG Alliance Update on Restructuring & Refinancing Progress

Strategic Research Institute
Published on :
07 Dec, 2021, 5:27 am

Following the creation of LIBERTY Steel Group’s Restructuring and Transformation Committee in May 2021 and the sustained progress achieved to date, GFG Alliance and the Restructuring and Transformation Committee have report further developments across the Group. Chief Restructuring Officer Mr Jeffrey S Stein said “We’re pleased to announce the restart of LIBERTY Steel USA’s Georgetown in South Carolina plant, further evidence of healthy market conditions and strong infrastructure spending across much of the globe. GFG Alliance’s international businesses are achieving excellent performance which is bolstering cash flow and boosting the Group’s refinancing efforts. Since our last update further organizational progress has been made to focus the group on its core businesses, cementing the foundations for a successful recovery”

United States - LIBERTY Steel USA is to reopen its Georgetown in South Carolina rod mill as strong market conditions enable a sustainable restart following a period of care and maintenance during the Covid-19 pandemic. LIBERTY Steel Georgetown will resume production in mid-January, enabling 65 employees to return to work, as higher construction and infrastructure spending strengthens demand and the provision of Section 232 tariffs and quotas on steel reduces imports.

UK - After a strategic review GFG Alliance announced in November that it will restructure LIBERTY Aluminium Technologies and divest it to Evtec Aluminium Ltd. The transaction will secure the future of more than 170 jobs and ensure that the Coventry and Kidderminster plants continue to supply LAT’s solid long-term customer base. However, as a result of the restructuring, LAT’s plant in Witham will close, and sadly this may result in approximately 64 people being made redundant.

Europe - In Belgium, the Liège Commercial Court has validated the LIBERTY Liège transformation plan, which has also been approved by the business’s creditors. The plan presented by the management team is an important and positive step for the long term, sustainable future of the business and its employees. In Luxembourg, the management team at LIBERTY Dudelange has agreed with both its unions and the Government to undertake a technical restructuring to temporarily protect its employees while new sources of financing are put in place.

On 8th November Mr Toker Ozcan was appointed as CEO, GREENSTEEL EMEA for LIBERTY Steel Group, as LIBERTY further strengthens its international management team to lead the global transition to GREENSTEEL. Mr Ozcan, who brings thirty years of experience in metals and mining, lastly as Chairman and CEO of Erdemir and Isdemir, will oversee GFG’s electric arc furnace operations in continental Europe, UK, and India, and also lead the Group’s downstream operations in continental Europe.
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BlueScope & Shell to Develop Green Hydrogen Projects in Illawarra

Strategic Research Institute
Published on :
07 Dec, 2021, 5:29 am

BlueScope has signed a Memorandum of Understanding with Shell Energy Operations Pty Ltd to work together to explore and develop renewable hydrogen projects at BlueScope’s Port Kembla Steelworks in the Illawarra region of New South Wales in Australia. The collaboration encompasses two projects:

Pilot renewable hydrogen electrolyser plant at the Port Kembla Steelworks - This initial project will investigate designing, building and operating a pilot-scale 10MW renewable hydrogen electrolyser to explore and test the use of green hydrogen in the blast furnace at BlueScope’s Port Kembla Steelworks. The ambition is to demonstrate hydrogen as a pathway towards low emissions steelmaking. The hydrogen could also potentially be used for other purposes, such as to feed a pilot direct reduced iron plant.

Illawarra hydrogen hub concept - The MoU also provides for BlueScope and Shell to collaborate with other organizations to develop a hydrogen hub in the Illawarra. This project will explore options for hydrogen supply and off take renewable energy supply and hydrogen and electricity infrastructure. The project will also examine the logistics infrastructure required for a commercially viable hydrogen supply chain in the Illawarra.

The Illawarra's diversity of sectors across industry, energy, transport infrastructure, minerals and mining, combined with research and academic partnerships, makes it well-placed for further collaborations to develop hydrogen technology and support the region's decarbonization efforts.

The MoU collaboration is part of BlueScope’s previously announced climate investment program of up to $150 million over the next five years.
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UK Steel Warns of Energy Prices Derailing Green Steel Transition

Strategic Research Institute
Published on :
07 Dec, 2021, 5:31 am

UK steel industry’s trade association UK Steel in a report warned that UK steel makers' attempts to cut carbon emissions are being crippled by sky-high electricity prices. UK Steel report “‘A barrier to decarbonisation: Industrial electricity prices faced by UK steelmakers’, shows how British firms face higher costs than foreign rivals, which can then sell their steel more cheaply. The report says “Whilst gas and electricity prices rose over the past eight months across Europe, due to increased gas demand in Asia and lower supply from Russia, the increase is considerably higher here in the UK. Soaring power costs are hampering plans to move towards cleaner production because greener methods need even more electricity.”

As per report “The average UK electricity prices steel companies paid in September and October reached GBP 182 per MWh, almost double compared to estimated German averages at GBP 94 per MWh. The UK’s disproportionately high electricity prices have cost UK steelmakers an extra GBP 90million this year and GBP 345million over the last six years, equivalent of almost two years capital investment in the sector.”

UK Steel warned “The price disparity is a major barrier to meeting the net-zero target, since all options for decarbonising steel production from carbon capture and storage, to hydrogen, to electric arc production lead to significantly increased electricity consumption.”

Power costs make up about 20% of the manufacturing costs of steel. Switching from blast furnaces to hydrogen-based steelmaking could involve using 250% more electricity. A complete shift to electric arc furnace production would increase consumption by 150%.

Among other recommendations, the UK steel report said the British government should implement power network cost reductions similar to those in Germany and France in order to help the industry reduce its CO2 impact.
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Russia to Support Production of Speciality Steel under PLI Scheme

Strategic Research Institute
Published on :
07 Dec, 2021, 5:33 am

India’s Prime Minister Mr Narendra Modi and Russian President Mr Vladimir Putin held 21st India Russia Annual Summit in New Delhi. Discussion were held on the production of speciality steel under the Production Linked Incentive Scheme in India, and the utilization of technologies from Russian state steel institutes for steel production in India by private and public sector companies.

A MoU for reliable long-term supplies of coal to India for steel production was signed. The Indian side welcomed the interest of the Russian side in learning from India's experience of gainful utilization of coal residues. The sides also welcomed the meeting of the 1st Working Group on Coking Coal in the virtual format in October 2020. The sides appreciated the outcomes of the visit of the Minister of Steel of India to Moscow to attend the Russian Energy Week in October 2021.
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Vale Producing Sustainable Sand from Tailings

Strategic Research Institute
Published on :
07 Dec, 2021, 5:30 am

Combining innovation, sustainability and benefits for society, Vale invested around 50 million Brazilian Reais in the development of sand produced from adaptation in the iron ore operation in the State of Minas Gerais. The sandy material, previously disposed in piles and dams, is processed and transformed into a product, following the same quality controls used in the production of iron ore. After seven years of research, Vale Sand comes as 100% legal and efficient alternative for the civil construction industry for use in cement, precast concrete, interlocked blocks, pavement, among others.

The sand produced by Vale is considered by-product of the iron ore, considering that it is composed of material which was not used in the ore production process. The previous tailings now return for new treatment and become a product with high silica content and low iron content. As it is an essentially physical processing, the sand is not toxic, considering that it does not undergo change in the composition of the materials. Another positive point for the civil construction is that the chemical and granulometric uniformity of the product is high.

Only in 2021, more than 250 thousand tons of the products have already been processed and destined for sale to companies or donation to city halls for use in concrete, mortar, precast, artifacts, cement and road pavement. So far, Vale has sold more than 1 million tons of sand to companies in Minas Gerais, Espírito Santo, São Paulo and the Federal District. The deliveries will be made next year. There is perspective for even higher growth for 2023, reaching 2 million tons.

This action promotes a circular economy within our units and reduces the impact of tailings disposal for the environment and the society, in addition to being a reliable alternative for the civil construction industry, where the demand for sand is high"
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