M.E. Steel News Today
Tuesday, October 26, 2021

Linking Steel Sellers &
Buyers in Middle East

New Info on MEsteel

Global Steel Trade (2020)
Middle East Steel Prices

General ME: Merchant bars prices in MENA region move in different directions


Middle East Steel News

Bahrain: Bahrain Steel and Anglo American sign deal to supply high quality iron ore pellets
General ME: Merchant bars prices in MENA region move in different directions
Turkey: MMK Metalurji's revenue rises sharply in Jan-Sept 2021 amid strong steel demand
Saudi Arabia: Dar Al Arkan to develop residential project in Taif

Global Steel News

China: Coking coal futures end flat in volatile trade; iron ore futures extend gains
China: EAF based steel firms face higher production costs amid power curbs - CISA
India: JSW Steel to set up prepainted mill in Kashmir
Russia: TMK unit supplies steelmaking equipment to MMK
United Kingdom: Tata Steel UK commissions 30 MW generator in a bid to bring down energy cost
Sweden: SSAB swings to profit in Q3 2021 supported by higher steel prices


New (Renewed) Steel Companies on MEsteel
Company Country Steel tons handled per year (kt) Brief Description
EMIRATES REBAR LTD. U.A.E. 100-500 Cutting and Bending of deformed steel bars including detailing and scheduling and supply of wire mesh and couplers.

Upcoming Events
Middle East Steel News

Bahrain Steel and Anglo American sign deal to supply high quality iron ore pellets

Bahrain's iron ore pellet producer, Bahrain Steel has signed an agreement with a major mining firm, Anglo American, for conversion of pellet feed into higher quality iron ore pellets.

"We are working with Bahrain Steel to explore new ways of bringing product to market more efficiently, and recently signed a three-year agreement to convert (toll treat) up to two mln tons of pellet feed annually from our Minas-Rio mine in Brazil into high quality iron ore pellets. This processed product, to be supplied to steelmakers worldwide, is a significant addition to our high-quality portfolio" Anglo American said in a press release.

Minas-Rio, located in the Minas Gerais region of Brazil, is one of the largest iron ore mines in the world. It is rated at an annual output of 26.5 mln tons.

The pellets are an important feedstock for direct reduction (DR) steelmaking, a technically-proven, hot production route for direct reduced iron (DRI) which, when paired with an electric arc furnace (EAF), has the lowest CO2 emissions of any commercially-proven steelmaking route.

The pellets can also be used in BF steel making, which today accounts for approximately two-thirds of total steel production. Courtesy of their high iron ore content (66pct+), as well as their ability to transfer heat more effectively than other iron-based input materials, the pellets make this process more efficient.

Peter Whitcutt, CEO of Anglo American's Marketing business said: "The iron and steel sector directly accounts for 2.6 gigatons of carbon dioxide (CO2) emissions annually, seven pct of the global total from the energy system. As countries worldwide seek to stimulate their economies following the prolonged impact of the Covid-19 pandemic, while at the same time reducing their carbon footprints, the availability of steel will be key to those endeavours."

Bahrain Steel is a leading producer of high-grade iron-ore pellets. Its twin plants have a combined rated capacity of 12 mln tons of pellets a year. 

[ Steel Prices ]    [ Back To Top ]

Merchant bars prices in MENA region move in different directions
General ME

Upward trend in scrap prices has pushed section and merchant bar prices in Turkey but major GCC producers kept prices unchanged.

Turkish steel prices increased significantly following the uptrend in scrap import prices. Turkish exporters are offering merchant bars in the range of USD 890-900 per ton CFR Jebel Ali, up by USD 100 per ton as compared to prices in the last month.

UAE's Emirates Steel and Bahrain's Sulb are offering beams in S275 JR in the range of USD 915-920 per ton delivered.

Omani supplier is offering angles at USD 760-770, down by USD 30-40 per ton as compared to last month prices.

Outside MENA region, Chinese beams and angles prices are largely unchanged. Chinese IPE (100-160 mm) export prices are in the range of USD 990-1,010 per ton CFR Jebel Ali. Chinese origin UPN (80-200 mm) offers are at about USD 930-940 per ton CFR. Chinese origin angles (40-100 mm in 6m length) prices are in the range of USD 930-940 per ton CFR Jebel Ali.

[ Steel Prices ]    [ Back To Top ]

MMK Metalurji's revenue rises sharply in Jan-Sept 2021 amid strong steel demand

Turkish flat steel producer, MMK Metalurji's revenue for the first nine months of 2021 increased significantly, supported by higher steel demand and prices.

The company's revenue was amounted to USD 732 mln as opposed to USD 353 mln in the same period last year.

The company's EBITDA grew more than 11 times to USD 144 mln.

In Q3 2021, MMK Metalurji's revenue increased by nearly 40 pct to 330 mln tons as compared to USD 235 mln in the previous quarter. EBITDA grew by 34pct to USD 67 mln in Q3 2021, driven by higher sales volumes and margins.

The MMK Metalurji complex, located near Iskenderun on Turkey's Mediterranean coast and in Istanbul, was built by MMK in 2007. The company produces hot rolled, cold rolled, galvanized and prepainted steel.  

[ Steel Prices ]    [ Back To Top ]

Dar Al Arkan to develop residential project in Taif
Saudi Arabia

Dar Al Arkan, a leading real estate company in Saudi Arabia, has signed an agreement with Madinat Al Wouroud Housing Development company to jointly set up a residential project at an investment of SAR 3.7 bln (USD 985 mln) in Taif governorate in the kingdom's southwest region.

It will offer residential units ranging from apartments, villas, and townhouses in addition to a variety of commercial facilities and amenities.

The development of the new residential project is due to begin in the first quarter of 2022 and is expected to be completed within four years. 

1 USD / 3.75 SAR

[ Steel Prices ]    [ Back To Top ]

Global Steel News

Coking coal futures end flat in volatile trade; iron ore futures extend gains

Dalian coking coal and coke futures fluctuated wildly on Tuesday, mirroring market unease over regulatory intervention in China to tame surging prices of coal in particular.

The most-traded January coking coal on China's Dalian Commodity Exchange rose as much as 3.9pct before falling by up to 3.4pct within the first two hours of trading. It ended daytime session steady at 2,950.50 yuan (USD 462) a ton.

Coke, the processed form of coking coal and the primary reducing agent for key steelmaking ingredient iron ore, rose 3pct to 3,790 yuan (USD 593) a ton, after slumping 2.4pct in early trade.

"The collective price of coal-related futures has turned from strong to weak," analysts at Sinosteel Futures wrote in a note, attributing the market volatility to Beijing's resolve to ensure supply and stabilize prices.

"They will implement intervention measures on coal prices in accordance with the law, causing market panic," they said.

On Tuesday, China's top economic planner - the National Development & Reform Commission (NDRC) - said it was studying a mechanism to stabilise coal prices over the long run, in its latest move to cool the red-hot market.

That followed the agency's statement on Friday saying it would send teams of inspectors to major coal producing regions to probe the costs of coal production and circulation.

Tight supply in China, the world's biggest steel producer, propelled coking coal and coke prices to record peaks earlier this month.

The most-traded iron ore futures on the Dalian Commodity Exchange, for January delivery, gained as much as 3pct to 714.5 yuan (USD 112) per ton.

The benchmark iron ore contract on Singapore Exchange was up 3.6pct.

Construction steel rebar on the Shanghai Futures Exchange gained 0.6pct, while hot-rolled coil shed 1.1pct, under pressure after China said it would roll out a pilot real estate tax in some regions.

Stainless steel rose 2.2pct.

1 USD / 6.38 yuan 

[ Steel Prices ]    [ Back To Top ]

EAF based steel firms face higher production costs amid power curbs - CISA

Production costs at Chinese steel mill have increased, especially at electric arc furnaces, because of recent power rationing and government demands for energy consumption cuts, the country's steel association said.

Steel mills have cut or halted production because of the power supply crunch since September, which will "significantly increase companies' costs" and weigh on their profitability, Qu Xiuli, the vice chairwoman of the China Iron and Steel Association (CISA), said at a news conference.

The world's second-largest economy has suffered from the power curbs because of high coal prices for generators amid tight supply of the fuel, leading to companies ranging from upstream metalmakers to downstream fabricators slowing down activities as the government vowed to prioritise residential power consumption. read more

Daily crude steel output last month plunged to the lowest level since December 2018, official data from the statistics bureau showed.

Capacity utilisation rates at electric arc furnaces (EAF), which consume double the electricity to produce a ton of steel compared with blast furnaces, dived more than 20pct YoY at the end of September, before recovering slightly in October.

Huang Dao, deputy secretary general of the CISA, said at the news conference that energy consumption and production controls bring big challenges and pressures to steel producers, especially for EAFs because of possible increases in electricity fees in the future.

China's electric arc furnaces account for around 10pct of its total steel output. The country aims to bring the proportion to 15-20pct by 2025 as the short metallurgy process conserves energy and reduces emissions, while it also eases China's reliance on imported iron ore.

"If taking account of green electricity, the advantage of lower carbon emissions from EAF production is much more obvious than blast furnaces," said Huang.

Qu said she expects the impact from power curbs on mills to improve next year as Beijing steps up efforts to increase coal output, and the long-term target of electric arc furnace development remains unchanged.

But electric arc furnace companies should make more high value-added products such as special steel and stainless steel to transfer rising costs with higher sales prices, Qu added.

[ Steel Prices ]    [ Back To Top ]

JSW Steel to set up prepainted mill in Kashmir

Sajjan Jindal-led JSW Steel said it will be investing around INR 150 crore (USD 20 mln) to set up a colour-coated steel facility in Kashmir.

The planned downstream manufacturing facility of capacity 120,000 tons per annum will also house special lines to produce sandwich panels ad steel doors for the local market here in Jammu and Kashmir, said the release.

To be set up in Lassipora, Pulvama, will be an addition to the already existing capacity of 27 mln tons.

By 2025, JSW Steel aims to produce 40 mln ton of steel annually.

1 USD / 75.1 INR

[ Steel Prices ]    [ Back To Top ]

TMK unit supplies steelmaking equipment to MMK

ETERNO, part of TMK, has manufactured and delivered to Magnitogorsk Iron & Steel Works (MMK) steelmaking equipment, a customized design EAF bath.

The new product of ETERNO INGENIUM lineup is the bottom part of a steelmaking furnace. It is a structural low-alloy steel tank for liquid metal and slags, 9.6 m long, 7.4 m wide and 3.2 m high. The installation method was customized to ensure precise product geometry.

"As part of expanding its product line, TMK designs customized integrated engineering solutions for the steelmaking industry. ETERNO had previously shipped a 500 tons ladle car to MMK, our strategic partner. The EAF bath shipment is another great example of productive collaboration between the industry's leaders. We provide MMK with knowledge-intensive solutions to produce high-quality steel for flat-rolled products, which are then supplied to our facilities to make large-diameter pipe," noted Denis Makienko, TMK's Director for Machine-Building Business Development.

[ Steel Prices ]    [ Back To Top ]

Tata Steel UK commissions 30 MW generator in a bid to bring down energy cost
United Kingdom

Tata Steel said it has installed a 30 megawatt generator at a British plant that will cut costs and its carbon footprint.

The generator will convert gases generated at Tata's plant in Port Talbot, Wales, into useful energy, cutting its energy bill by millions of pounds each year and slashing CO2 emissions, the company said in a statement.

UK Steel, which lobbies on behalf of the British steel industry, warned earlier this month of an impending crisis due to soaring wholesale energy prices which could force plants into expensive shutdowns.

"Our on-site power plant uses process gases to heat water into steam, which then drives a turbine," said Guy Simms, Tata project manager.

The new generator joins three older and less efficient ones already on the site.

[ Steel Prices ]    [ Back To Top ]

SSAB swings to profit in Q3 2021 supported by higher steel prices

Steelmaker SSAB reported third-quarter earnings as opposed to loss in the same quarter last year, helped by surging steel prices and said it expected demand to remain good during the final months of 2021, even if it injected a note of caution about development in Europe.

The company's operating profit was SEK 5.80 bln (USD 674 mln) versus a year-ago loss of SEK 973 mln.

"Looking ahead, we expect Q4 to show good development, partly because there is a certain lag in the realization of our steel prices, compared to the spot market," Chief Executive Martin Lindqvist said in a statement.

However, the company said it expected a softening of demand in Europe, primarily due to the semiconductor shortage, which is affecting the vehicle industry.

SSAB added that it expected demand in North America to be strong during the fourth quarter, with global demand for high-strength steel strong in more or less all markets.

1 USD / 8.59 SEK

[ Steel Prices ]    [ Back To Top ]



contact us   |   latest news  |   steel prices   |   statistics  |   qualities



Please visit www.mesteel.com for full steel news coverage.
For further information, contact us at news@mesteel.com
Sources of news are mentioned online

MEsteel takes no responsibility whatsoever for the contents of the newsletter


Post Your News