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Chinese steel mills to deepens production cuts – Report

Bloomberg reported that Chinese steelmakers are deepening the first production cuts in a quarter century as the bull market in iron ore drives up costs and squeezes profits.

Yi Zhu, a Hong Kong-based Bloomberg Intelligence analyst, said last week that “China’s steel capacity has already peaked and output growth has slowed down. Some high cost steel producers are making a loss on rising iron ore prices. Capacity closures and the potential exit of the market of marginal producers may force more output cuts.”

Crude steel output will shrink as much as 2 percent this year, according to the China Iron & Steel Association. That’s lower than the group’s March estimate of a 1.1 percent decline and would be the first contraction since at least 1990. CISA said recently “A rally in iron ore and a persistent fall in steel prices have presented a grave situation for the Chinese steelmakers.”

An acceleration in raw material costs and a collapse in steel prices has pushed the Bloomberg Intelligence China Steel Profitability Index to the lowest in almost seven years. The steel profit index calculated by Bloomberg Intelligence estimates mill margins by deducting the costs of inputs including iron ore from the selling price of products, such as hot-rolled steel, used in automobiles and piping.

Falling profits may indicate a decline in China’s manufacturing Purchasing Managers’ Index in the coming months, BI said Friday. The factory gauge was 50.2 in May, just above the level that signals expansion. Movements in the BI steel profit index have been leading indicators of manufacturing PMI.

Source : Bloomberg
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10 Years On - Anti Posco activists observe Black Day

Business Standard reported that with the fate of Posco's proposed mega steel plant in Odisha still hanging in balance, the anti-Posco activists observed 'Black Day' at the project site coinciding with the completion of 10 years of signing of MoU between the state government and the South Korean steel major.

The anti-Posco activists led by their leader, Mr Abhya Sahoo observed 'Black Day' at Patana village in the site area. They threatened to intensify their stir until the Posco project is officially scrapped. They also demanded withdrawal of all criminal cases filed against the activists and villagers terming them as false and fabricated.

Waving black flags and wearing black ribbons round their wrists and foreheads, the villagers, under the banner of Posco Pratirodh Sangram Samiti (PPSS) staged rallies and demonstration.

The group has been observing June 22 as 'Black Day' every year since the state signed a pact with Posco for the 12 million tonne per annum capacity steel plant on June 22, 2005.

Source : Business Standard
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ArcelorMittal to invest USD 1.2 billion in Kryvyi Rih

Published on Tue, 23 Jun 2015 208 times viewed

According to media reports quoting ArcelorMittal CEO Lakshmi Mittal during his visit to the Ukrainian mill, steel giant ArcelorMittal will invest USD 1.2 billion in its Ukrainian subsidiary ArcelorMittal Kryvyi Rih

The company said that it is planning to continue with the investments in the Ukrainian subsidiary until 2019. During the past three years, investments made in ArcelorMittal Kryvyi Rih have amounted to more than USD 1 billion.

In 2014, ArcelorMittal Kryvyi Rih produced 25.1 million tonnes of iron ore, 5.6 million tonnes of pig iron, 6.3 million tonnes of crude steel and 5.6 million tonnes of rolled steel products.

Source : SteelOrbis
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ArcelorMittal steel in record-breaking skyscraper built in 19 days


ArcelorMittal supplied 10,345 tonnes of steel for an ambitious project to construct a 57-storey skyscraper in a record-breaking 19 days.

Broad Sustainable Building made headlines for constructing the high-rise in Changsha, China, at the equivalent rate of three storeys per day, using a total of 10,345 tonnes of HISTAR® beams, supplied by ArcelorMittal Europe’s long products plant in Differdange, Luxembourg.

ArcelorMittal played a pivotal role in bringing the ambitious project to fruition, providing the best-suited steels for the structure and counselling Broad Sustainable Building to use rolled sections instead of built-up sections to speed up the fabrication. The HISTAR® beams contributed to the speedy fabrication of the vast amount of steel “trees” required to construct the building’s core.

Spanning 80,000sqm, the iconic high-rise known as “Mini Sky City” will provide 800 apartments and office space for 4,000 people. The skyscraper is built with 90-percent, factory-produced, LEGO-like blocks, using a modular construction technique which won BSB a CTBUH Innovation Award in 2013.

“Time is money and the modular construction is going to change the way small and tall buildings are constructed all over the world”, said Jacques Braun, a general manager at ArcelorMittal. “The combination of recyclable high-strength steel and rolled sections in HISTAR® is ideal for achieving the fastest, safest and most economical structures”.

Image: one of the steel "trees"

HISTAR® steels are quenched and self-tempered (QST) steels with market-leading weldability and ductility. Supplied in several different grades, these ArcelorMittal steels have been used in skyscrapers worldwide, including the Freedom Tower in New York and the World Financial Center in Shanghai.

met foto's

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Steel companies from China expanding production overseas

According to Shanghai's China Business News, Chinese steel companies have turned their attention to overseas markets for their production facilities after focusing on the acquisition of mines,

The Chinese-language Indonesia Shang Bao newspaper recently reported on a plan by China's Anshan Iron and Steel Group (Ansteel) to build a steel plant with an annual production of 85 million tons in Morowwali in central Indonesia, citing Imam Haryono, director-general for industrial estate development under the Industry Ministry of the Southeast Asian nation. However, employees at Ansteel told the China Business News that they have no details about the project, as no official agreement has been reached.

According to Zhang Lin, an analyst at Lange Group, a provider of market information on the steel sector, Chinese steel companies set their sights on the demands of local markets when planning overseas plants. He said "For instance, Indonesia has strong demand for steel because of the rapid growth of its economy. The automobile, ship building and machinery sectors will become the main driving forces behind the increasing demand for steel.”

Nanjing Iron and Steel Group already entered a joint venture with Indonesia's PT Gunung Gahapi Sakti in January 2014 to build a steel mill in Medan. US$80 million was invested in the first phase of the project in Medan to build a plant that can produce 500,000 tons of steel products a year within three years.

Despite easy access to coal at home and from Australia, Zhang said the main challenge facing Chinese companies is the lagging infrastructure in some areas in Indonesia. "Some islands have no electricity and require construction of railways and highways," Zhang said.

Zhang also said that South America is a tougher market because of the strict environmental evaluation process and labor laws there, which are both areas that Chinese companies handle poorly, even at home.

Hebei province, which has the highest concentration of steel plants in China, is also encouraging local companies to expand overseas, especially in Southeast Asia, West Asia and Africa, according to the paper.

Several companies in Hebei have launched or have planned projects in Indonesia, Thailand and Laos, while the largest steel maker in the province, Hebei Iron and Steel Group, signed a deal with the Industrial Development Corp of South Africa and the China-Africa Development Fund to build a 5 million-ton plant in South Africa in September 2014.

Source : China Business News
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ThyssenKrupp Australia acquire Pilbara based Maxx Engineering

ThyssenKrupp Australia has acquired Pilbara based Maxx Engineering. According to ThyssenKrupp the acquisition is part of the company’s strategy to expand its iron ore services in the Pilbara.

It follows the business opening a plant service centre in Henderson, WA, late last year.

Mr Greg Breakell CEO ThyssenKrupp Industrial Solutions (Australia) said “The acquisition of Maxx Engineering is an important step for ThyssenKrupp Industrial Solutions to strategically invest in the expansion of our country-wide service network in Australia”.

He said “Maxx Engineering will continue to provide its support machine maintenance, breakdown service and emergency repairs services to its current clients in and around Port Hedland, and continue to operate under the business name Maxx Engineering.”

ThyssenKrupp has appointed David Derman as manager, with the existing management staying on to support the transition.

No value was given on the takeover of Maxx Engineering.

Source : Mining Australia
herbie bell
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Chinese steel output continues to fall
Crude steel production in China decreased 1.7% year on year
in May to 69.95 million mt, according to latest data from the
National Statistical Bureau. Though higher than this April's total
of 68.91 million mt, the daily average in May was 2.26 million
mt, down from 2.3 million mt the month before.
For the first five months of 2015, Chinese steel output
declined by 1.6% to 340.17 million mt compared with the corresponding
period of 2014. Market observers say that steel
makers had ramped up production in anticipation of a seasonal
pickup in demand. Production, however, was reduced then
in reaction to soft demand given a sluggish economy, poorerperforming
property market, increasing glut of steel, and a
rebound in iron ore prices hurting mills' margins.
With the additional factor of Beijing's crackdown on polluting
industries taken into account, the trend has led some
observers to suggest that China has passed peak steel production.
The January-May pace would annualize at 816 million mt,
against the 822 million mt produced last year.

source: Ryan notes june 2015
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Miners wipe out USD 85 billion through M&A in last 8 years - Citigroup

According to Citigroup Inc, the world’s biggest mining companies wiped USD 85 billion off the value of takeovers struck in the past eight years after prices for aluminum, iron ore and nickel collapsed

Mr Jon Bergtheil, an analyst at Citigroup, said in a note on Monday “About 90 percent of their deals since 2007 were written off raising questions about their capital allocation strategy.”

Rio Tinto Group, the world’s second-largest miner, was worst affected with 34 percent of its asset base impaired, followed by Anglo American Plc with a 23 percent impairment

Aluminum made up USD 25 billion of the charges, followed by iron ore with USD 10.3 billion and nickel with USD 7.8 billion.

Coal assets are set to add to writedowns as prices fall

Source : Bloomberg
ttroo
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Dus aandeelhouders value blijft een mooi theoretisch begrip. De uitvoering blijkt dus een stuk moeilijker te zijn. Mooi artikel Voda. Tx.
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Chinese steel mills cut their export prices further this week

If the latest numbers are to be belived, Chinese steel mills have stepped up their assault on overseas market with cheaper export offers this week by cutting plate prices further by USD 25, after dropping their prices substantially in Week 25 which resulted in severe price correction in European domestic steel market. While their aggresivness seems to be a result of securing volumes, it is causing serious trouble to steel mills in most countries and we need to wait to see the bottom.

HRP to Italy from different Chinese Mills have now reached USD 385 per tonne CFR FO for quality S275JR and USD 405 per tonne CFR FO for S355J2+N. The price is effective including all thickness range that, for some Mills, is up to 140 mm.

Last week booking of steel plates from Chinese steel mills have been done at level around USD 410 per tonne CFR FO Med ports, which means a crash of about USD 25 over last two days

HDG base price offered in Italy is reported at EUR 440per tonne, with possibility to get discounts, depending on quantity and specification.

PPGI Prime is at EUR 550 per tonne effective

Source : Strategic Research Institute
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Iron ore price retreat continues as China reopens on Tuesday

The price of iron ore has fallen for the seventh session in the last eight on Tuesday as investors continue to fret about rising oversupply risks in the coming months with analysts seeing a USD 10 drop soon to take prices belwo USD 50 mark.

Source : Strategic Research Institute
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US raw steel production in Week 25 dips WoW and YoY

AISI announced that in the week ending June 20, 2015, US’s domestic raw steel production was 1,726,000 net tons while the capability utilization rate was 73.0 percent. Production was 1,889,000 net tons in the week ending June 20, 2014 while the capability utilization then was 78.5 percent.

Source : Strategic Research Institute
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ThyssenKrupp and Maxion to Develop Carbon Fiber-Aluminum Hybrid Wheels

ThyssenKrupp Carbon Components has established a cooperation with Maxion Wheels to develop new ultra-lightweight, carbon fiber-aluminum hybrid wheels for premium vehicles. Maxion Wheels is an innovative manufacturer of wheels who offers products with outstanding performance benefits. ThyssenKrupp supplies automotive components worldwide, and is an innovative lightweight materials and carbon fiber applications company.

Source : Strategic Research Institute
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Turkish iron ore imports rise in April

The latest data released by the Turkish Statistical Institute (TUIK) suggests that the country’s iron ore imports surged higher during the month of April this year. The imports during the month totaled 1.02 million tons, surging 31.8% when compared with the imports during the same month a year ago.

It must be noted that the demand for imported iron ore has continued to remain robust despite sharp decline in BF-based crude steel output by the country during the month.

The import value generated by iron ores totaled $87.68 million during the month. The import values witnessed sharp decline of almost 22% year-on-year during April 2015.

The cumulative iron ore imports by Turkey during the initial four-month period in 2015 totaled 3.54 million tons, up by nearly 30.3% when compared with the imports of 2.72 million tonnes during the corresponding four-month period from January to April last year.

The largest supplier of iron ore to Turkey during the four-month period was Brazil. The imports from Brazil totaled 1.75 million tons, accounting for nearly 50% of the total imports by the country during this period. The iron ore imports from Brazil witnessed sharp surge of 107% over the previous year.

In second place was Sweden with 658,940 tons. The imports from that country witnessed a decline of nearly 12% over the previous year. Sweden had shipped nearly 745,154 tons of iron ore to Turkey during Jan- Apr ’15.

Source : Scrap Monster
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Brazilin iron ore exports in May decline YoY

According to data released by the Brazilian Ministry of Development, Industry and Foreign Trade, iron ore shipments from Brazil totalled 23.65 million tonnes in May, down 0.76% from a year earlier,

The average export price of iron ore during the month recorded at USD 27 per tonne declined 19% YoY.

During the first five months, the country's iron ore exports hit 126 million tonnes. It is estimated that the total exports will reach 300 million tonnes this year.

Source : www.metal.com
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Third Generation Advanced High Strength Steel being developed at Missouri University

Science Daily reported that a high-strength steel being developed at Missouri University of Science and Technology could help auto manufacturers in their quest to meet future fuel efficiency requirements. The development of this new steel, known as a "Third Generation Advanced High Strength Steel" is under way at Missouri S&T's Kent D. Peaslee Steel Manufacturing Research Center.

Center director Dr Ronald J O'Malley the F. Kenneth Iverson Endowed Chair of Steelmaking Technologies at Missouri S&T said "We are currently refining the steel design to achieve 'Gen 3' mechanical property goals while also maintaining manufacturability. This is one of the most promising generation-three steels I've seen."

Under the U.S. Department of Transportation's Corporate Average Fuel Economy (CAFE) regulations, auto manufacturers must improve the fuel efficiency of their vehicles year-by-year through 2020. Regulators have set a tentative goal of increasing fuel efficiency to 54.5 miles per gallon for cars and light trucks by the 2025 model year. Improvements in exhaust treatment systems, transmission efficiency and aerodynamics all contribute to better fuel efficiency. But reducing vehicle weight is also important in achieving the CAFE goals, O'Malley says.

"Automakers must make lightweight vehicles without sacrificing safety," O'Malley says.

What is called first-generation steel is most commonly used in today's cars and trucks. A second-generation product has been developed, and it is stronger and more lightweight than the first-generation material, but O'Malley says it is too costly to produce and more difficult to manufacture. The third-generation steel being developed by Missouri S&T metallurgical engineers should be lighter, easier to make and strong enough to address automakers' safety concerns, he says.

The S&T researchers are employing a method known as TRIP -- or transformation-induced plasticity -- to obtain the performance required to meet both safety and CAFE goals. It involves the transformation of an unstable crystal structure known as austenite, which normally exists at high temperatures, into martensite, a harder substance that develops as the steel deforms.

"The S&T alloy design employs a two-stage or 'dual TRIP' mechanism that leads to extreme work hardening and energy absorption, so it's very good for automotive crash-worthiness," says O'Malley.

Under the direction of Dr. David C. Van Aken, Curators' Teaching Professor of metallurgical engineering, the Missouri S&T team has used an atomic modeling method known as density functional theory to identify alloying elements to create the dual TRIP character of these new steels.

The real challenge, however, lies with the large-scale production of these new steels. With the help of industrial partners, the researchers at Peaslee Steel Manufacturing Research Center are examining all aspects of the steel manufacturing -- "from melt practice to final formability by the automotive producer," O'Malley says. A committee of representatives from four steel manufacturers -- Nucor, U.S. Steel, AK Steel and ArcelorMittal -- oversees the project.

One benefit of conducting the research at Missouri S&T is the ability of researchers to create and test small batches of steel. In S&T's labs, researchers can create 200 pounds of steel at a time, whereas big steel manufacturers like Nucor, where O'Malley was chief metallurgist before joining S&T, would have to make 170 tons of steel for testing, O'Malley says.

Source : Science Daily
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Chinese steel mills lower billet and plate export prices

Bad news is continuing to emanate from several countries in Week 26 of 2015 as Chinese steel mills have gone on full throttle on export front causing a major slide in steel price levels casting a spell of gloom over steel mills worldwide.

Source : Strategic Research Institute
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ArcelorMittal rebars reinforce Poland’s new landmark bridge

An iconic new bridge being constructed across the river Wislok in Rzeszow, Poland, features 900 tonnes of rebars produced at ArcelorMittal Warszawa.

Standing at 108.5m-tall, 400m-long and 29m-wide, the €44m bridge – which will be Poland’s second-highest – is being built with ArcelorMittal rebars to reinforce the structure’s concrete components.

Produced at ArcelorMittal Europe’s long products facility in Warsaw, the steel was tailored to German customer Bilfinger Infrastructure’s specific requirements at ArcelorMittal’s distribution solution facilities for cutting and bending in Katowice, Poland.

Rebars were supplied in B 500 SP steel grade in diameters ranging from 10 to 32mm. Formed from mild steel, with ribs for frictional adhesion to the concrete, the ArcelorMittal rebars are EPSTAL-certified, meeting all the specifications required for a construction project of this nature.

The bridge is set to offer many advantages to Rzeszow citizens, including improved access to Jasionka airport, an extension of existing cycle lanes, and improved traffic flow through the city centre.

“We’re delighted to once again see ArcelorMittal steel used in a project to help modernise infrastructure in Poland”, said Marek Kempa, CEO of ArcelorMittal Warszawa: “Our steel at Warszawa has been used for several key infrastructure investments including the new Warsaw underground stations and the Lodz railway station, which will be completed by the end of the year”.

Construction of the bridge began last summer and is expected to be completed in September.

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