M.E. Steel News Today
Monday, February 6, 2023

Linking Steel Sellers &
Buyers in Middle East

New Info on MEsteel

Global Steel Trade (2021)
Middle East Steel Prices

Pakistan: Flat steel firms hike prices as currency weakens further
Pakistan: Rebar prices surge to record high


Middle East Steel News

Pakistan: Flat steel firms hike prices as currency weakens further
Pakistan: Rebar prices surge to record high
UAE: Drydocks World-Aker JV wins vessel upgrade contract
UAE: Construction firms post positive margins for first time since Q3 2018 - report
Saudi Arabia: Malaysian firm awarded deal to build 10,000 homes in Jeddah

Global Steel News

China: Iron ore futures volatile amid demand concerns
India: Govt to push steel producers to increase usage of scrap - Minister
India: Kamdhenu's net profit grew sharply in Oct-Dec 2022
United States of America: Benteler terminates sale of pipe business to Tenaris
South Africa: Kumba Iron Ore expects annual profit to drop as logistics hurdles hit exports


New (Renewed) Steel Companies on MEsteel
Company Country Steel tons handled per year (kt) Brief Description
AL-ITTEFAQ STEEL PRODUCTS COMPANY Saudi Arabia >1000 Manufacturer of steel reinforced bars, billets, DRI and downstream premium steel products.
Upcoming Events
Middle East Steel News

Flat steel firms hike prices as currency weakens further

Pakistan's flat steel manufacturers, International Steels Limited (ISL) and Aisha Steel have increased CRC and galvanized coil prices for the domestic market by PKR 15,000 (USD 54) per ton as compared to the prices announced last week.

New price offered by ISL for CRC, 1mm, is at PKR 274,500 (USD 994) and galvanized coil, 1mm, is at PKR 283,850 (USD 1,028) per ton EXW.

Aisha Steel is offering CRC 1 mm at PKR 274,550 (USD 994) and galvanized coil 1mm at PKR 283,900 (USD 1,028) per ton EXW.

In USD terms, prices increased by USD 6-7 per ton due to currency volatility.

The above prices are without the 17 pct sales tax.

The Pakistani rupee lost more value against the USD last week as the country faces a growing financial crisis with issues such as the risk of defaulting on debt, a shortage of USD, rising inflation and foreign reserves at a nine-year low.

1 USD / 276 PKR

[ Steel Prices ]    [ Back To Top ]

Rebar prices surge to record high

Pakistani manufacturers have raised rebar prices by PKR 28,500 (USD 103) per ton for the domestic market.

The domestic rebar prices now range from PKR 301,500-303,500 (USD 1,092-1,100) per ton EXW, although in USD terms, prices have increased by USD 54 a ton due to currency fluctuations.

Major rebar producers said that they would not be able to take any new orders due to the raw material shortages.

The Secretary General of the Pakistan Association of Large Steel Producers, Wajid Bukhari, stated that the State Bank of Pakistan has not been successful in fixing the problems with opening Letters of Credit (LCs). This failure has caused a severe lack of raw materials and has resulted in production delays and the shutdown of multiple steel companies. The Pakistani steel industry has a yearly production capacity of more than 5 mln tons. However, the LC crisis due to the shortage of foreign currency has forced many steel businesses to decrease production or close down entirely, according to Bukhari.

1 USD / 276 PKR

[ Steel Prices ]    [ Back To Top ]

Drydocks World-Aker JV wins vessel upgrade contract

Drydocks World, a DP World Company, said its joint venture with Aker Solutions, a global provider of oilfield products, systems and services for the energy sector, has been signed up by Altera Infrastructure for the upgradation of a Floating Production Storage and Offloading (FPSO) vessel at an oil and gas field in the UK.

The new joint venture combines the complementary strengths, resources and experience of Drydocks World's leading marine and offshore services with Aker Solutions' integrated solutions, products and services to cater for the needs of the global energy industry.

As per the deal, Aker Solutions will handle the detailed design and procurement of equipment in Norway, while Drydocks World will be responsible for the fabrication and construction work at their yard in Dubai.

The joint venture entity had signed its first contract with Altera Infrastructure, a global energy infrastructure services group, to upgrade, refurbish and electrify the FPSO, the Petrojarl Knarr.

The vessel will be redeployed at Rosebank field, with the upgrades allowing it to be kept in the field for 25 years without drydocking.

The Petrojarl Knarr FPSO, which is the owned by Altera Infrastructure, is currently at the Aker Solutions yard in Norway and will remain there until it is towed to Dubai later this year. The engineering, procurement and construction (EPC) work is planned for completion by the end of 2025.

[ Steel Prices ]    [ Back To Top ]

Construction firms post positive margins for first time since Q3 2018 - report

Profit margins for companies moved into positive territory for the first time since third quarter 2018, supported by strong growth across the UAE construction industry, the Royal Institution of Chartered Surveyors (RICS) said in its UAE Construction Monitor Q4 2022 report.

The current profit margins are tilting positive at 6 pct from -19pct and -40pct in third and fourth quarters of 2022, respectively.

Moreover, the 12-month expectations for profit margins are "strongly positive", with a net balance of 46 pct, up from 23 pct in the last quarter.

According to RICS, the UAE's construction activity rose to 49 pct from 37 pct in the third quarter, signaling further increases in the region's activity.

The growth was driven by a consistent rise in reported workloads across the three subsectors, with reading at 54 pct for private residential, 32 pct for private non-residential and 48 pct for infrastructure/public works.

Among the factors affecting activity and growth, cost of materials remained the highest reported factor at 69 pct of total respondents, but down from 80 pct in third quarter of 2022.

Nearly 63 pct of respondents voted financial constraints as another key concern, which is the lowest reading since the monitor began in third quarter of 2018.

Many factors, such as material costs, chime with the global construction landscape. That said, the core strengths of the UAE's construction sector are shrugging off these negative pressures, RICS said.

The report also found that 12-month workload expectations remained positive across the board, with all three sectors firmly in positive territory. Private non-residential projects lead the growth with a 16-point increase to 60 pct.

"Overall, while the UAE's construction sector is challenged by many of the same conditions impacting other construction sectors across the globe, the country remains one of the leading lights for growth, and this is set to continue for the foreseeable future," RICS stated.

[ Steel Prices ]    [ Back To Top ]

Malaysian firm awarded deal to build 10,000 homes in Jeddah
Saudi Arabia

Saudi-based Sany Alameriah For Construction Company has signed up MGB Berhad - a leading Malaysian construction and property development company and a subsidiary of LBS Bina Group - to design and build 10,000 residential units in Jeddah.

The USD 665 mln project, which is being developed as part of Sakani housing programme, is due for completion in five years.

Sany Alameriah is a joint venture between Sany, the second largest heavy equipment manufacturer in the world, and Alameriah, a renowned developer in Saudi Arabia.

It is principally involved in general construction activities, real estate development, infrastructure, design and build, and manufacturing of precast concrete products.

[ Steel Prices ]    [ Back To Top ]

Global Steel News

Iron ore futures volatile amid demand concerns

Singapore iron ore futures fell on Monday to their lowest in nearly three weeks, while Dalian prices see-sawed, as traders curbed their optimism about demand prospects in top steel producer China.

Iron ore's benchmark March contract on the Singapore Exchange was down 1.2pct at USD 123.40 a ton. Earlier in the day it hit its weakest since Jan. 18 at USD 121.15, and on Friday marked its first weekly loss this year.

On China's Dalian Commodity Exchange, the steelmaking ingredient's most-active May contract ended daytime trade 0.9pct higher at 853.50 yuan (USD 125.9) a ton, rebounding after hitting a session-low 835 yuan (USD 123.2).

"We expect to witness some immediate downside for iron ore prices this week, as supply- and demand-side fundamentals temporarily loosen," Navigate Commodities Managing Director Atilla Widnell said.

Steel demand in China has yet to pick up after the Lunar New Year holidays, partly indicated by rising inventories, while the production rate has marginally improved, analysts said.

The blast furnace capacity utilization rate among 247 steel mills across China surveyed by a steel consultancy firm was at 84.32pct as of Feb. 2, up by 0.18 percentage point from Jan. 27.

Traders were seen waiting for signals of further policy support for the Chinese economy. However, China's policymakers have ruled out flood-like stimulus even as they plan to show more support for domestic demand this year.

Other Dalian steelmaking inputs also erased early losses, with coking coal and coke up 1.8pct and 0.4pct, respectively.

Rebar on the Shanghai Futures Exchange climbed 0.5pct and hot-rolled coil rose 1pct, while wire rod shed 0.4pct. Stainless steel advanced 0.9pct.

1 USD / 6.77 yuan 

[ Steel Prices ]    [ Back To Top ]

Govt to push steel producers to increase usage of scrap - Minister

India's Union Steel Minister Jyotiraditya Scindia said that his ministry will push primary steel producers to use 50 pct of their input from scrapped/recycled steel by 2047 to help achieve the government target of moving into a circular economy. Currently, the level of recycled steel usage in primary steel production is only around 10 pct even though recycled steel contributes to 22.5 pct of the domestic total steel production of 140 mln tons, the minister said.

Noting that recycling is the key cog in the wheel of manufacturing as economies move into a circular model of development, he said, "Going forward the industry should focus on the 6Rs philosophy of reduce (exploitation of natural resources), recycle, reuse, recover, re-design and reinforce".

He said the government is committed to reducing CO2 emissions in the steel sector by 5 pct by 2030 from the current 2.85 to 1.4 CO2 per ton of crude steel, and to achieve this recycling scrap steel is an extremely important source.

"Today, scrap usage is only 15 pct in primary steel production. We will push the steel industry to increase this to 25 pct in the next five years, and by 2047, this should double to 50 pct. This means that the primary steel producers consume only 50 pct of iron ore by then," Scindia said.

This is needed as the natural resources are finite and the demand looks infinite, he said, adding the steel industry has the biggest role to play in the whole process.

The country currently produces 25 mln tons of scrap steel and annually imports 5 mln tons of scrap steel with zero import duty, he added.

The recycling industry is highly unorganized and is worth about USD 50 bln now. There are over 25,000 recycling units in the country. However, in the metals space almost 95 pct are organized, Material Recycling Association president Sanjay Mehta said.

He also urged the minister to extend the duty-free imports of other scraps such as copper, aluminum, zinc and other metals as many countries are adopting no export of scrap policies now.

Domestic recyclers used to import 25 pct of their shipments from the EU markets. Similarly, the UAE is also a large source market for the country. Countries are discouraging exports of scrap as they move into the circular economy.

[ Steel Prices ]    [ Back To Top ]

Kamdhenu's net profit grew sharply in Oct-Dec 2022

Steel maker Kamdhenu Ltd has posted an 82 pct growth in its net profit during the December quarter at INR 12.02 crore (USD 1.45 mln), on the back of increased revenues.

The company had recorded INR 6.6 crore net profit during October-December period of 2021-22 fiscal, Kamdhenu Ltd said in a statement.

Its revenue from operations also rose 23 pct to INR 182.7 (USD 22.14 mln) crore from INR 149 crore in the year-ago period.

At INR 17.1 crore (USD 2 mln), the earnings before interest, taxes, depreciation and amortization (EBITDA) was 60 pct higher from INR 10.7 crore a year ago.

On the outlook for the sector, Agarwal said the domestic steel demand growth continues to remain healthy, driven by renewed thrust on infrastructure development and pick-up in the real estate and construction activities.

The rebar market has been increasing at a fast rate with a significant growth rate over the years, and it is likely to increase significantly in the coming decade.

Further, the government's push towards infrastructure creation is leading to further increase in domestic demand for steel.

Kamdhenu Ltd has a plant in Hyderabad with production capacity of 300,000 tons of rebars and plans to expand its capacity to 360,000 tons in the next one year.

1 USD / 82.4 INR

[ Steel Prices ]    [ Back To Top ]

Benteler terminates sale of pipe business to Tenaris
United States of America

Tenaris S.A. announced that Benteler North America Corporation has exercised its right to unilaterally terminate, effective immediately, the previously-announced agreement for the sale to Tenaris of 100pct of the shares of U.S. steel pipe producer Benteler Steel & Tube Manufacturing Corporation.

Last year, Tenaris announced that it has entered into a definitive agreement to acquire from Benteler North America Corporation for an aggregate price of USD 460 mln.

Benteler Steel & Tube Manufacturing Corporation is a U.S. producer of seamless steel pipe, with an annual pipe rolling capacity of up to 400,000 tons at its production facility located in Shreveport, Louisiana.

The deal had been expected to close in the fourth quarter of 2022.

[ Steel Prices ]    [ Back To Top ]

Kumba Iron Ore expects annual profit to drop as logistics hurdles hit exports
South Africa

Kumba Iron Ore warned that 2022 profit could have slumped by as much as 44pct due to weaker iron ore prices and rail logistics problems in South Africa.

The Anglo American unit, which exports iron ore mainly to China, Japan, South Korea, Europe and the Middle East, produced 37.7 mln tons of the key steel ingredient in 2022, down from 40.9 mln tons the previous year.

Sales were 9pct lower at 36.6 mln tons, as rail problems impacted Kumba's capacity to move iron ore to port.

South Africa's state-owned freight rail operator Transnet is operating below capacity due to locomotive shortages, poor maintenance, a lack of spare parts and massive copper cable theft, costing iron ore and coal exporters billions of rand in potential revenue.

Transnet's operations were also disrupted by a 12-day strike last October as its workers pushed for a wage increase.

The impact of Transnet's constraints on Kumba's exports was particularly telling in the fourth quarter of 2022, when sales fell 35pct to 6.9 mln tons compared to the same period of 2021, and 31pct from the previous quarter.

[ 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