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Steel Technologies to Acquire Calstrip Industries

Strategic Research Institute
Published on :
15 Dec, 2021, 3:29 am

Leading US metal processor Steel Technologies LLC has entered into a definitive agreement to purchase the assets of Calstrip Industries Inc. The transaction is expected to close late December 2021. Calstrip is a premier company in the flat-rolled metal processing business with operations in California, New Mexico, Texas, and Arkansas. Calstrip has developed a strong business model focused on contract business with complex supply chain and inventory management for JIT deliveries. Material offerings include flat-rolled low-carbon and high-carbon steel, stainless steel, galvanized, pre-painted, and aluminum. Industries served include appliance, electrical lighting, construction, HVAC, and automotive.

Steel Technologies, headquartered in Louisville, Kentucky, is a leading metal processor in North America and leverages its broad geographic network of operations to deliver value-added products and services to customers. The Calstrip acquisition will expand Steel Technologies’ North American platform to 31 facilities, including joint-venture operations, located throughout the United States, Canada and Mexico.

Steel Technologies is owned by NuMit LLC. which is a 50-50 joint venture between Nucor Corporation, North America’s leading manufacturer of steel products and Mitsui & Co (USA) Inc, a wholly owned subsidiary of Mitsui & Co., Ltd.
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Dongkuk Steel is Market Leader for Colored Steel in South Korea

Strategic Research Institute
Published on :
15 Dec, 2021, 3:32 am

Pulse reported that South Korea’s third largest steelmaker Dongkuk Steel expects business leap this year thanks to the growing population of its colored steel sheets in buildings and electronics products that have already helped its cumulative operating profit in the first three quarters more than double from a year ago. Dongkuk Steel produces 850,000 tonnes of colored steel per year, the world’s largest single plant manufacturing at its Busan plant. It is Korea’s undisputed champion in this sector with a market share of about 35%. It first rolled out colored steel plates in 1972 for the first time in Korea.

The colored steel plates released so far are divided into four to five generations in terms of technology advancement. Dongkuk Steel is leading the pack with a focus on the development of fifth-generation colored steel plates with added functions such as antibacterial, no flammability, photoluminescence, and solar cells.

Colored steel are used for commercial buildings and home appliances. Key examples include facades and interiors of D Tower, Seoul Tower Plaza, Starbucks Drive Thru stores and Samsung’s Bespoke products. The price of colored steel plates is 2 to 4 times that of full hard steel, contributing to the company’s profitability.

Dongkuk Steel reported KWR 5.12 trillion (USD 4.33 billion) in consolidated sales in the first three quarters of this year, up 34% YoY, with an operating profit of KWR 614.9 billion, up 155% YoY. Dongkuk Steel generated 55% of its sales of colored steel plates from exports last year.
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Vallourec to Supply OCTG for Development of Shenandoah Field

Strategic Research Institute
Published on :
15 Dec, 2021, 3:34 am

Leading seamless pipe maker Vallourec has been awarded the contract for Oil Country Tubular Goods products for the Shenandoah project in the Gulf of Mexico by BOE Exploration & Production LLC. The special equipment, tubular solutions and connections comply with BSEE’s regulations and guidelines. Vallourec will supply intermediate and production casing. The scope of supply includes the latest connection technology with VAM SLIJ-3 and VAM BOLT-II, custom sizes, and proprietary grades.

The recently sanctioned Shenandoah project is one of the next generation high-pressure/high temperature developments requiring 20,000 psi pressure ratings for deep water drilling in the Gulf of Mexico. Shenandoah is 160 257 km offshore Louisiana in Walker Ridge blocks 51, 52, and 53. The drilling phase is expected to begin in Q3 2022, with first oil expected in Q4 2024.
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Reliance Steel & Aluminum Acquires Admiral Metals Servicecenter

Strategic Research Institute
Published on :
15 Dec, 2021, 3:37 am

Reliance Steel & Aluminum Co has acquired Admiral Metals Servicecenter Company Inc, a leading distributor of non-ferrous metal products in the Northeastern United States. Founded in 1950 and headquartered in Woburn in Massachusetts, Admiral Metals serves a wide variety of end markets including the semiconductor, automotive, medical, infrastructure, aerospace and industrial markets through its eight strategically located service center locations which provide next-day delivery of in-stock items.

Admiral Metals’ broad product offering of approximately 3,000 SKUs includes aluminum, brass, bronze, copper, stainless steel and steel in a variety of forms and shapes, including round, hex, rectangle, sheet, square, plate, and tube, among others. Admiral Metals also performs value-added custom cutting services for its customers. Admiral Metals’ annual net sales in 2020 were approximately USD 134 million. The terms of the transaction were not disclosed.

Founded in 1939 and headquartered in Los Angeles, California, Reliance Steel & Aluminum Co. is a leading global diversified metal solutions provider and the largest metals service center company in North America.
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JFE Steel Fires Renovated BF 4 at West Japan Works Kurashiki Ward

Strategic Research Institute
Published on :
15 Dec, 2021, 3:40 am

JFE Steel has completed the renovation work of the 4th blast furnace of West Japan Works in Kurashiki Ward and fired the furnace on December 13. The revamping process began in April 2020 and was carried out at cost of about 50 billion yen. During the No 4 blast furnace‘s revamping, inner volume was expanded from 5,005 square meters to 5,100 square meters, which will ensure optimum post-steelmaking production capacity in conjunction with the new No 7 continuous casting machine that started up in June 2021. To reduce operating costs, new features were also added for more precise positioning when charging raw materials into the furnace. Also, raw material transfer capacity was upgraded, new equipment was installed in the cast house for enhanced operability, and the cooling systems were improved to extend the service life of the blast furnace body.

West Japan Works Blast Furnaces

Kurashiki District

No. 2 BF (operating) - 4,100 square meters, November 2003 (Campaign 4

No. 3 BF (operating) - 5,055 square meters, February 2010 (Campaign 4)

No. 4 BF (revamped) - 5,005 square meters, January 2002 (Campaign 3)

Fukuyama District

No. 3 BF (operating) - 4,300 square meters, May 2011 (Campaign 4)

No. 4 BF (operating) - 5,000 square meters, May 2006 (Campaign 4)

No. 5 BF (operating) -5,500 square meters, March 2005 (Campaign 3)
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Nippon Steel Denies Media Reports about Acquisitions in Thailand

Strategic Research Institute
Published on :
15 Dec, 2021, 3:42 am

Japanese steel maker Nippon Steel has refuted some articles in the media today, regarding Nippon Steel's acquisition of Thai steel companies. Nippon Steel said “These articles are not based on our announcement. While we have been considering acquisition of, and equity participation in, integrated steel mills in China, ASEAN countries and others in order to achieve 100 million tonnes of global crude steel capacity per annum, we have not made decision at this point in relation to what has been reported in the media.”

Nikkei had reported that Japanese steel giant Nippon Steel is set to acquire two electric furnace based steelmakers G Steel and GJ Steel in Thailand in 2022, in a move aimed at reducing its reliance on coal to produce the metal.
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Polluting Steel Firms in Hyderabad Asked to Relocate by March

Strategic Research Institute
Published on :
15 Dec, 2021, 3:44 am

Express News Service reported that Telangana State Industrial Infrastructure Corporation has issued notices to about 35 steel industries, which are located in the city of Hyderabad, directing them to shift their premises outside the ORR limits by end of March 2022. According to the Telangana State Industrial Infrastructure Corporation, a detailed project report on the relocation of industries should be submitted by January 10 and the work has to be completed within three months. If the industries fail to comply with these orders, they will be closed and the land allotments will be cancelled

Telangana State Industrial Infrastructure Corporation Chairman Mr G Balamallu chaired a high-level meeting with local representatives and polluting steel industry owners on the relocation of Katedan polluting steel industries outside the ORR limits. During the meeting, the decision was taken to shift the 35 polluting steel industries in Katedan and Jeedimetla, which had been issued shifting notices in 2008, to a specially set up Steel Industrial Park on 150 acres in Rakamcherla in Vikarabad district. Balamallu clarified that it’s the last chance for concerned steel industry owners for relocating polluting industries as prescribed by the State government.

He warned that the violating steel industries would be shut down and their land allotments will be cancelled if the process of relocation of industries was not undertaken by the deadline day. He directed the owners to take advantage of this opportunity and move the steel industries to Rakamcherla without fail.
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US Offers Quota Based Deal to Japan for Steel Tariffs - Report

Strategic Research Institute
Published on :
15 Dec, 2021, 3:47 am

Bloomberg, citing people familiar with the situation, reported that US made an offer to Japan aimed at resolving disputes over tariffs imposed on Japanese steel and aluminum under former US president Mr Donald Trump in 2018. As per report, the US Department of Commerce and Office of the US Trade Representative submitted the proposal to officials of Japanese government. Sources said “The US’ proposal to Japan is similar to the deal with the EU, in that a certain amount of steel and aluminum, based on the historical averages shipped, would be allowed to enter the US free of duties.”

However, the Japanese government is holding out for a better deal. Japan is calling for the tariffs to be abolished completely

While there had been hopes of resolving the dispute by the end of the year, it is now unclear whether that deadline can be met

The spat began in 2018, when Mr Trump placed tariffs on steel and aluminium imports from the European Union, Asia, and other countries, claiming national security concerns. In October, the US and EU clinched a tariff-busting trade accord.

According to Census Bureau statistics, the United States imported around 1.7 million tonnes of steel from Japan in 2017, the most recent year not affected by the tariffs, and 1.9 million tonnes in 2016. Inbound steel shipments from Japan to the United States reached 732,158 tonnes in 2020.
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Nippon Steel Unveils Mega Transformation Plan

Strategic Research Institute
Published on :
15 Dec, 2021, 3:50 am

Japanese steel giant Nippon Steel has announced its new medium-to long-term management plan to contribute to industrial competitiveness. Nippon Steel in 97thTerm interim Report unveiled four pronged plan

1. Rebuild domestic steel business & strengthen group's management

2. Promote a global strategy to deepen and expand our overseas business

3. Taking on the challenge of zero-carbon steel

4. Promote digital transformation strategies

1. Rebuild domestic steel business & strengthen group's management - The restructuring of Nippon Steel’s domestic steel business is an unprecedented large-scale structural reform to be completed by fiscal 2025, with the aim of building a resilient profit structure that will ensure profits even in the event of a further deterioration in the business environment. Nippon Steel will reduce the number of blast furnaces from 15 to 10 and crude steel production capacity by 10 million tonne s, equivalent to approximately 20% of total capacity, and rationalize the workforce by more than 20% to improve labor productivity. The structural reform combined with the previously-announced measures is estimated to have an impact of around JPY 150 billion. This series of measures is not intended to merely arrive at a lower equilibrium. Nippon Steel will work toward a more advanced order mix with a higher proportion in high value-added products that ensures profitability to Nippon Steel. While the volume of domestic production will decrease, we plan to increase revenues and profit, and significantly improve labor productivity. As strategic investment, Nippon Steel have decided to install a new next-generation hot strip mill at the Nagoya Works for stable, economical mass production of state-of-the-art ultra-high-tensile steel sheets, and to work on measures to improve the capacity and quality of electrical steel sheets at the Setouchi Works Hirohata Area and the Kyushu Works Tawata Area.

2. Promote a global strategy to deepen and expand our overseas business - By further deepening and expanding our overseas operations, along with the expansion of the consolidated profit base, Nippon Steel intends to establish global capability of 100 million tonnes of crude steel production. In so doing, Nippon Steel e will thereby maintain position as a major player in the expanding global steel industry. Over the mid to long-term, steel demand in Asia and other parts of the world will grow, while the COVID-19 pandemic has accelerated the trend of local production and local consumption and favoring domestic production. In this environment, Nippon Steel’s main focus will be the integrated steelmaking business, which allows Nippon Steel capture the entire local demand as potential market. Nippon Steel will shift into high gear in full-scale overseas business that will ensure higher added value. With regard to ArcelorMittal Nippon Steel India, an acquired integrated steelmaker in India, Nippon Steel considers to expand its capacity, including the construction of a second steel mill. In Asia, particularly ASEAN, acquisition of or equity participation in an integrated steel mill is also under consideration.

3. Taking on the challenge of zero-carbon steel - The Challenge of Zero-Carbon Steel has two aspects. One is the provision of Nippon Steel technology and products to those who can benefit from them, and can contribute to the realization of a green society. This also presents business opportunities to Nippon Steel. Another challenge is the development of a new production process that will promote CO2 emission reduction in manufacturing processes. Breakthrough technology development, including development in unexplored areas, is needed. We face the enormous challenge of our connections to the environment. Nippon Steel is taking on this challenge as Nippon Steel's paramount priority issue and as an opportunity to reestablish outstanding industrial superiority by taking advantage of Nippon Steel world's best technology

4. Promote digital transformation strategies - Nippon Steel has been attentively collecting and analyzing the vast amounts of data generated at manufacturing and business sites to reduce costs and improve quality. These accumulated data are our strength. Aiming to become a digital advanced company in the world steel industry, Nippon Steel will make full use of treasure. Nippon Steel is committed to achieving both environmental sustainability and corporate growth. Specifically, Nippon Steel will steadily carry out the management plan and build a global 100 million-tonne crude steel production structure that comprises Nippon Steel strong domestic and overseas local mills. At the same time, Nippon Steel will tackle the Nippon Steel Carbon Neutral Vision 2050 - the Challenge to Zero-Carbon Steel. Moreover, Nippon Steel will work on digital transformation to development capabilities and by implementing technologies ahead of other steelmakers. Through development and practical implementation of breakthrough technologies ahead of other countries, Nippon Steel aims to reduce CO2 emissions by 30% compared to 2013 in 2030 and achieve carbon neutrality in 2050. Zero-carbon steel, however, cannot be achieved by the efforts of the steel industry alone. As prerequisite, Nippon Steel needs government support for research and development and equipment implementation, establishment of a hydrogen supply infrastructure, realization of carbon-free power supplies, and establishment of a system that enormous costs will be borne by society as a whole.
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Megafon to Build LTE Network for MMK in Magnitogorsk

Strategic Research Institute
Published on :
16 Dec, 2021, 4:56 am

Russian steel maker Magnitogorsk Iron and Steel Works and MegaFon have signed a five-year agreement on cooperation in the development of advanced technologies. The agreement, in particular, will affect the development of the Internet of Things, the digitalization of the enterprise, as well as the improvement of the telecom infrastructure on the territory of Magnitogorsk. At the production sites of PJSC Magnitogorsk Iron and Steel Works, MegaFon will build a private LTE network. The Private LTE network will create a secure and stable data transmission environment for digitalization projects of the plant, including the introduction of industrial Internet of Things technologies, services based on video analytics and positioning systems for personnel, machines and mechanisms.

The network will be deployed by 2022 on an area of over 11 thousand hectares, more than half of which is occupied by industrial premises. For a stable signal, more than 20 Indoor base stations will be built within the branched out group of workshops, and 6 new telecom facilities will operate on the open territory of PJSC MMK. MegaFon will install state-of-the-art equipment, which in the long term will ensure a seamless transition to the use of 5G technology.

Base stations will operate in the 900 and 2600 MHz bands. The lower one will ensure the best penetration of the communication signal inside the production shops, where MMK plans to introduce services based on the Internet of Things for the smooth operation of technological processes. The upper range guarantees the highest data transfer rates.
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Rimjhim Ispat Acquires BRG Iron & Steel in Liquidation

Strategic Research Institute
Published on :
16 Dec, 2021, 4:59 am

Economic Times reported that Rimjhim Ispat has acquired BRG Iron & Steel for INR 530 crore last month at an auction held by the liquidator. Rimjhim Ispat is paying more than what it had offered during the pre-Covid period under a court-monitored debt resolution process. When Rimjhim Ispat made the first bid, it had offered INR 500 crore under the debt restructuring process, but the offer was rejected by 98% of BRG Iron’s financial creditors. Consequently, the National Company Law Tribunal ordered liquidation in February 2020.

Financial creditors had made total claims of INR 3,461 crore, of which the highest was from State Bank of India, followed by UCO Bank

Kolkata based BRG manufacturers stainless steel in 200, 300 & 400 series, carbon steel & alloy steel and is a prominent player in the Indian stainless with capacity of 800,000 tonnes per year with following facilities, as per their website

1. One electric arc furnace & 10 induction furnaces

2. AOD converters & ladle refining furnaces

3. Continuous slab casting & billet casting

4. Hot rolling mill for plates and HRC

5. 20 Hi Mills for CR

Headquartered in Kanpur in Uttar Pradesh, Rimjhim Ispat Ltd is an integrated steel manufacturer producing a wide assortment of steel sheets and tubular products.
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BMRA Seeks Withdrawal of Zero Waste Scotland’s Report on Scrap

Strategic Research Institute
Published on :
16 Dec, 2021, 5:03 am

The Scottish Policy Group of the British Metals Recycling Association has called on Zero Waste Scotland to withdraw its report, entitled How should Scotland Manage its Scrap Steel?, citing serious concerns with its accuracy. The Scottish Policy Group believes that the total apparent lack of engagement with the industry, including the trade association, prior to writing and publishing the report is concerning and has resulted in significant errors in the report.

The Scottish Policy Group said “The data referenced in the report refers to the UK scrap market as a whole and does not differentiate Scotland’s scrap arisings and destinations. Moreover, the destination of processed Scottish steel scrap is mis-reported as going to blast furnace steel mills in Turkey. In reality, the vast majority is shipped to the short-sea market steel mills in continental Europe, predominately Spain. Most of these steel mills operate with electric arc furnaces, most with renewable energy grids. These data errors effectively mean that the report’s cited carbon savings and benefits of locating a steel mill in Scotland are meaningless as they are compared to steel mills in Turkey, not EAFs based in the European Union.”

The Scottish Policy Group also said “The report states that locating an EAF in Scotland would save transport and energy emissions over current processes. Again, this is incorrect. Building an EAF in Scotland would result in some 70,000 additional HGV journeys every year to move the stated 820,000 tonnes of processed ferrous scrap in the report. It’s hard to see how this would contribute to achieving Scotland’s net zero aspirations. Furthermore, the authors do not set out the type of steel mill to be built, which is a critical oversight as no single steel mill could meet Scotland’s needs, as different mills produce different types of steel product.”

Finally, any new steel mill would have to operate in a global market. There is no mention in the report where the markets for the steel products produced in a Scottish steel mill would be located, and the energy and emissions generated in transporting to those global markets.

The Scottish Policy Group “Zero Waste Scotland has subsequently stated that, as part of its ongoing work in this area, it will engage with Scottish industry to gain a more detailed understanding of Scottish scrap steel arisings and our export destinations. However, as a Group, we can’t help but wonder if it would not have been better to consult with us before publishing this report? We would urge Zero Waste Scotland to work with the sector before publishing any further reports.”

In 2017, the UK exported over 9 million tonnes of recovered ferrous metal, approximately 800,000 thousand tonnes of which leaves from Scotland.

The British Metals Recycling Association is the trade association representing the BP 7 billion UK Metal Recycling sector. This includes 49 companies in Scotland.
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Demerger of Raspadskaya from EVRAZ plc Moves Forward

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

Russian miner & steel maker EVRAZ announced that definitive terms have been entered into in relation to the Demerger, subject to, among other things, approval of the Demerger and related matters by EVRAZ’s shareholders. A shareholder circular in relation to the Demerger has been submitted to the UK Financial Conduct Authority by the Company for approval. A further announcement will be made once the Circular has been approved for publication by the FCA. EVRAZ and RASP will operate as separate, independent companies following the Demerger. RASP currently provides approximately 70% of EVRAZ’s metallurgical coal supply requirements needed to support its operations.

It is proposed that the Demerger will be effected by EVRAZ making an interim in specie distribution of the shares it directly holds in RASP, which is listed on the Moscow Exchange, to EVRAZ shareholders. The effect of the Demerger will be that EVRAZ shareholders, who currently have an indirect interest in the RASP Group through their holding of EVRAZ shares, will have the opportunity to receive RASP shares and therefore hold a direct interest in the RASP Group.

EVRAZ plc had announced in January 2021 that it was considering the strategic merits of and possible structures for, the potential demerger of its metallurgical coal assets consolidated under PJSC Raspadskaya.
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Nucor Expects Record Quarterly Earning in Oct-Dec Quarter of 2021

Strategic Research Institute
Published on :
16 Dec, 2021, 5:10 am

US steel maker Nucor expects fourth quarter earnings to be in the range of USD 7.65-7.75 per diluted share, highest quarterly earnings in Nucor history, surpassing the previous record of USD 7.28 per diluted share that was set in the third quarter of 2021. Nucor said “Steel mills segment earnings in the fourth quarter of 2021 remain robust and are expected to be comparable to the third quarter of 2021 despite lower volumes caused by year-end seasonality. We expect the steel products segment to generate increased earnings in the fourth quarter of 2021 as demand in nonresidential construction markets remains strong. Raw materials segment earnings are expected to decrease in the fourth quarter of 2021 as compared to the third quarter of 2021 primarily due to margin compression at our direct reduced iron facilities.”

Nucor added “As we approach the end of the most profitable year in Nucor's history, demand continues to be strong in most of the end markets we serve. We are confident that 2022 will be another year of strong profitability for Nucor.”

Nucor and its affiliates are manufacturers of steel and steel products, with operating facilities in the United States, Canada and Mexico. Products produced include: carbon and alloy steel in bars, beams, sheet and plate; hollow structural section tubing; electrical conduit; steel racking; steel piling; steel joists and joist girders; steel deck; fabricated concrete reinforcing steel; cold finished steel; precision castings; steel fasteners; metal building systems; insulated metal panels; steel grating; and wire and wire mesh. Nucor, through The David J. Joseph Company, also brokers ferrous and nonferrous metals, pig iron and hot briquetted iron / direct reduced iron; supplies ferroalloys; and processes ferrous and nonferrous scrap. Nucor is North America's largest recycler.
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ABB Electromagnetic Stirring to Help Steel Makers Improve Quality

Strategic Research Institute
Published on :
16 Dec, 2021, 5:12 am

Global technology company ABB has launched its Tundish EMS solution to enable steelmakers to overcome the limited ability of the tundish vessel in controlling the flow of molten metal, and therefore steel quality and temperature. Tundish EMS is placed on the outside of the tundish and uses non-contact electromagnetic stirring technology to generate an electromagnetic field that creates a stirring effect in the bath melt. This continuous stirring significantly increases mixing zone volume for virtually the entire tundish, with higher flow speeds, elimination of dead zones and homogenization of temperature.

Adoption of this electromagnetic stirring technology will be particularly important for steelmakers with multiple casting strands coming from one tundish. It will mean greater removal of inclusions, resulting in smoother, cleaner steel and reductions in nozzle clogging. By creating a stirring flow throughout the entire tundish melt bath, Tundish EMS delivers rapid homogenization of temperature and chemical composition that results in better quality steel, more uniform and repeatable casting conditions across multiple strands and overall improved quality, productivity and profitability in billet and bloom casting and metal powder production.

Tundish EMS offers several new functionalities including flexibility in stirring force and direction and the ability to stir and control the flow field in the whole melt volume of the tundish. This means that steelmakers no longer have to rely solely on the limited ability of tundish furnishings for control of molten metal flow, where often significant dead zones lead to temperature variations and where smaller inclusions or inclusion clusters cannot be removed. A variety of Tundish EMS installation configurations are available for most tundish types.

Tundish EMS enhances quality, productivity and profitability in a number of ways. As well as improving non-metallic inclusion removal and overall steel cleanliness, it also provides temperature homogenization and stability throughout the entire tundish melt bath, reducing superheat and enhancing uniformity of temperature across various strands. Overall process repeatability and reliability is improved and costs are reduced by lowered consumption of tundish furniture such as dam, weir and baffle materials.
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SMS Group & Metinvest Sign MoU for Decarbonization Challenge

Strategic Research Institute
Published on :
16 Dec, 2021, 5:15 am

Ukrainian steel maker Metinvest and SMS group along with its subsidiary Paul Wurth have signed a Memorandum of Understanding to work together to reduce carbon emissions from iron and steelmaking. SMS group will support Metinvest in improving its operational efficiency and environmental performance. The MOU also sets out an agenda for discussions about future areas of cooperation with the greatest potential.

The MOU is also expected to provide the parties with the opportunity to develop and test new technologies to enhance iron and steelmaking, as well as downstream processes. Any concrete projects that emerge from these early discussions will be subject to further cooperation agreements and contracts.
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China’s Crude Steel Output Slips Below 70 Million Tonnes in Nov21

Strategic Research Institute
Published on :
16 Dec, 2021, 5:17 am

According to the National Bureau of Statistics, China's crude steel output fell further in November, for the sixth consecutive month, to 69.31 million tonnes down by 3.2 MoM and 22% YoY and 30% or 30 million tonnes as compared to peak of 99.45 million tonnes in May 2021 as production restrictions to combat pollution continued. In the first 11 months of the year, China made 946.36 million tonnes of steel, down 2.6% YoY

The official goal set for 2021 limits crude steel production at 1065 million tonnes, produced in 2020. But in the first half of 2021, Chinese steel mills churned out 12% more crude steel at 564 million tonnes and May output reached all-time high of 99.5 million tonnes. These numbers forced Chinese government to intensify crackdown forcing provincial and city governments to impose tougher curbs. As a result, Chinese crude steel production started coming down in last 5 months and is on track for China’s goal of maintaining the 2021 total at flat or lower than that of 1.065 billion tonnes in 2020.
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MSME Association AICA Declares Closure of All Industries on Dec 20

Strategic Research Institute
Published on :
16 Dec, 2021, 5:20 am

PTI reported that All India Council of Association of MSMEs, an umbrella body of 170 MSME associations in the country, has sought immediate government intervention for the reduction of raw material prices and announced one day closure of all industries across the country on December 20 and a one-hour peaceful demonstration in front of the respective Collectorate & District Magistrate Office to press for the intervention of the Prime Minister to reduce raw material prices to the April 2021 level.

The association said “We have represented this alarming matter through our memorandums to Hon'ble Prime Minister and various other Ministers in the Union Government with a request to control raw material prices, but unfortunately, nothing has happened, and the situation of the MSMEs has only worsened day by day. It is a matter of grave concern to all MSMEs across India that the prices of raw materials continue to rise for reasons not known. Due to this problem, MSMEs are not able to execute orders taken at a much lower price.”

The association demanded protection against escalation for some period, an easy mechanism to hedge steel for all MSMEs, and NSIC should act as a consolidation agency. It said ''Formula should be derived for price escalation. Steel Industry must publish steel prices of Long products, flat products and HRC coils on a quarterly basis. The price should be maintained firm for a period of a minimum of three months at a stretch.”

AICA has also requested the government to allow the import of all steel materials based on cost and quality requirements at a nil import duty and also ban the export of iron ore and steel products.

As per report, the closure of lakhs of MSMEs across India for a day will result in a production loss of INR 25,000 crore.
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ArcelorMittal Mexico Produces HRC at Lazaro Cardenas Plant

Strategic Research Institute
Published on :
16 Dec, 2021, 5:22 am

ArcelorMittal has completed construction of the new 2.5 million tonnes per year hot strip mill at its Mexican Lazaro Cardenas plant in Mexico, producing the first coil on December 15. The HSM will produce 1.2-25.4mm thick HRC in low carbon steels, ultra-low carbon, high strength low alloy, and API grades.

The new HSM will start commercial operations in January, taking the plant's capacity to 5.3 million tonnes per year of finished steel. Flat-rolled steel production would total 2.5 million tonnes, long steel would total 1.8 million tonnes and 1 million tonnes would be slabs.

In September 2017 ArcelorMittal announced a major USD1 billion, three-year investment programme at its Mexican operations, focussed on building the company’s downstream capabilities in Mexico. The investment followed confirmation that Lázaro Cárdenas, Michoacán, home to ArcelorMittal Mexico’s primary steelmaking operations, had been named as a Special Economic Zone.
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JSPL Keen to Acquire Neelachal Ispat Nigam Ltd

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

PTI reported that Jindal Steel and Power Ltd will aggressively bid for Odisha-based steel maker Neelachal Ispat Nigam Ltd. JSPL Managing Director Mr VR Sharma told PTI ''We are extremely serious about it and will bid aggressively for the asset. This asset is more valuable to us in terms of our operations there in Odisha.''

Asked about JSPL's plans with respect to NINL post acquisition of the unit, the MD replied his company would be investing in the asset to expand its capacity and product mix. Mr Sharma said '' We make and sell semi products. We will be able to manufacture finished products as well. We will turn around the company and also make investments in it. There are plans to set up a wire rod mill, a rebar mill, coke oven plant and a container manufacturing unit.”

Mr Sharma further said NINL is strategically located and its acquisition would provide additional advantages to JSPL. He told “The NINL plant in Jajpur is about 150 kilometers from JSPL's integrated steel unit in Angul. NINL is well connected through rail and road. It is also located near Dhamra port.”

NINL is a joint venture, in which four central PSUs MMTC, National Mineral Development Corporation, Bharat Heavy Electricals Ltd and MECON and two Odisha government companies IPICOL and Odisha Mining Corporation are shareholders. In January 2020, the Indian government gave an in-principle approval for strategic sale of NINL by allowing the six PSU shareholders to sell their stake in the steel company. Media had reported in July that the Department of Investment & Public Asset Management has shortlisted ArcelorMittal, JSW Steel, Tata Steel and Megha Engineering & Infrastructure Ltd for the proposed 100% strategic disinvestment of Neelachal lspat Nigam Ltd. December 23 is the scheduled date for bidding for Neelachal Ispat Nigam Ltd.

Neelachal Ispat Nigam Limited was incorporated in 1982 to set-up an Integrated Steel Plant to undertake manufacturing and sale of steel products. NINL's manufacturing unit is located at Kalinganagar Industrial Complex, Duburi in Odisha. The Company has built its manufacturing facility in two phases. In Phase I, the Company had set up the blast furnace of 1.1 million tonne per annum to produce pig iron which was commissioned in 2002. Subsequently, other supporting facilities like Sinter plant, Coke oven plant, Power plant were commissioned. The Company thereafter set up a Steel Melting Shop with installed capacity of 897,000 tonnes per annum for producing billets as Phase II capacity expansion plan along with Continuous Casting Shop, Ladle Furnace, Billet Caster and other auxiliary facilities which were commissioned during FY 2014. NINL has also been allotted a captive iron ore mine in Odisha having an estimated mineable reserve of around 90.91 million tonne. The major shareholders of NINL include MMTC 49.78%, NMDC 10.10%, MECON 0.68%, BHEL 0.68%, IPICOL 12.00% and OMC 20.47%.
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