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Thursday, December 5, 2019

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Gulf Countries Finished Steel Demand Forecast (2017-2020)

 

Middle East Steel News

Turkey: Steel exports grew by 6.4 pct in Jan-Oct 2019 YoY; imports decline 21 pct YoY
Pakistan: Dost Steel requests stock exchange to remove its name from defaulters list
UAE: Govt plans to build over 23,000 new housing units by 2025
Oman: Saraya-Omran JV breaks ground on commercial venture
Egypt: Elsewedy Electric awarded solar project in South Sudan

 
Global Steel News

China: HRC futures extend gains amid declining inventories; rebar drops 0.6 pct
China: Steel purchasing managers' index recovers in November 2019
China: Youli to commission magnesium sheet complex in Shandong
India: SAIL expects to start rails production in two years - official
Germany: ROGESA orders coke oven gas injection systems for blast furnaces
Germany: Thyssenkrupp to launch cost cutting measures in a bid to revive steel unit
General News: LatAm countries steel output drops 14 pct in Oct 2019 YoY

 

New (Renewed) Steel Companies on MEsteel
 
Company Country Steel tons handled per year (kt) Brief Description
POSCO DUBAI OFFICE U.A.E. >1000 Trader of HR coils steel plates and cold roll.

Middle East Steel News

Steel exports grew by 6.4 pct in Jan-Oct 2019 YoY; imports decline 21 pct YoY
Turkey

According to the Turkish Iron and Steel Producers' Association (TCUD), steel exports increased by 6.4 pct YoY to 18.5 mln tons in the first ten months of 2019. Steel imports decreased by 21 pct YoY to 10.1 mln tons in the same period.

In Jan-Oct 2019, long steel exports grew by 2.2 pct YoY to 8.8 mln tons. Flat steel exports amounted to 4.8 mln tons, up by 5.2 pct YoY. Semi-finished steel exports increased sharply by 82 pct YoY to 1.2 mln tons.

In the same period, flat steel imports were 6.1 mln tons, down by 9.6 pct YoY. Long steel imports declined by 23.3 pct YoY to 882,000 tons. Semi-finished steel imports were totalled 2.6 mln tons, down by 37.2 pct YoY.

In October 2019, total steel exports were amounted to 1.9 mln tons, down by 12.5 pct YoY. Steel imports increased by 16.1 pct on-year to 1 mln tons.

Flat steel exports dropped 1 pct YoY to 488,000 tons in October 2019. Long product exports amounted to 966,000 tons, down by 18.4 pct YoY. Semi-finished steel exports decreased 44.3 pct YoY to 81,000 tons.

In the same month, flat product imports increased by 19.1 pct to 660,000 tons YoY while long steel product imports amounted to 74,000 tons, down by 10.8 pct YoY. Semi-finished steel imports rose 38.7 pct YoY to 208,000 tons.

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Dost Steel requests stock exchange to remove its name from defaulters list
Pakistan

Pakistani rebar manufacturer, Dost Steel Limited (DSL) via notification has requested Pakistan Stock Exchange to remove the name of the company from the Defaulters' segment with immediate effect since the company is already implementing restructuring plan including negotiation with financial institutions for funds in order to meet working capital requirements.

Dost Steel rebar production capacity is 350,000 tons. The rolling mill was supplied by Siemens-VAI/Primetals.

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Govt plans to build over 23,000 new housing units by 2025
UAE

The UAE government has announced a major housing development programme under which more than 17,873 new residential units will be built across the country at an investment of AED 17.32 bln (USD 4.7 bln) over the next five years.

Besides this, a total of 5,134 houses will be built in residential neighbourhoods under construction, said Dr Abdullah bin Mohammed Belhaif Al Nuaimi, Minister of Infrastructure Development and Chairman of the Sheikh Zayed Housing Programme, which aim to provide suitable housing for UAE nationals.

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Saraya-Omran JV breaks ground on commercial venture
Oman

Muscat Bay, a joint venture between Saraya Holdings and Oman Tourism Development Company (Omran), has broken ground on its new commercial venture, Village Square, coming up over an area of more than 14,000 sq m within the development.

The construction work is being handled by Oman Shapoorji Company (Osco), a local unit of leading Indian construction group Shapoorji Pallonji, and it is expected to be completed by the middle of next year, said a statement from Muscat Bay.

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Elsewedy Electric awarded solar project in South Sudan
Egypt

Elsewedy Electric, a leading energy solutions provider in region, has signed a contract with the Ministry of Energy and Dams of South Sudan to build a hybrid solar photovoltaic project with battery storage system with a value of USD 45 mln.

The project shall be built on 250,000-sq-m land near Nesitu County, which is 20km from Juba, the capital and largest city in the Republic of South Sudan and shall start producing energy by 2020.

The project will consist of 20 megawatts-peak solar photovoltaic park, a 35 megawatts-hour battery storage system and in-house training center serving Jubek State and the entire Equatoria region.

Elsewedy Electric's scope of work covers engineering, procurement and installation of the entire project on turkey-basis; and should be started up in 12 months from the project commencement date.

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Global Steel News

HRC futures extend gains amid declining inventories; rebar drops 0.6 pct
China

Hot-rolled steel coil futures in China rose for a sixth straight session on Thursday, supported by falling inventories of the material used in making cars and home appliances, and boosted by a surprise growth in factory activity last month.

The most-traded contract for hot-rolled coil on the Shanghai Futures Exchange ended up 0.7pct at 3,619 yuan (USD 514.14) a ton, after climbing 1.5pct earlier in the session to its highest since July 26.

Hot-rolled coil inventory in China had fallen to 2.04 mln tons as of Nov. 29, the lowest since Jan. 18.

"Steel prices remained supported following the positive PMI data in November," said Richard Lu, senior analyst at commodities intelligence firm CRU in Beijing, referring to the gauge of factory activity.

The PMI, or Purchasing Managers' Index, bounced back to 50.2 in November, its highest since March, above the 50-point mark that separates growth from contraction on a monthly basis.

"We think there might be further improvement (in prices) because we are bullish about the market, especially for steel flat products," Lu said.

Construction steel rebar fell 0.6pct to 3,585 yuan a ton.

The most-traded iron ore contract on the Dalian Commodity Exchange edged down 0.5pct in volatile trade after two days of gains.

"Iron ore supply should normalise next year after a standout 2019," ING analysts said in a note.

Prices of the key steelmaking ingredient hit five-year highs in July, buoyed by supply disruption after a deadly dam burst in Brazil and weather-related issues that hit mine operations in Australia, as well as healthy demand in China.

"Over the coming year, we expect a relatively firmer first-half and a softer second-half in Chinese iron ore demand, taking steel demand prospects from infrastructure and the construction sectors into consideration," ING analysts said.

Benchmark spot 62pct iron ore for delivery to China gained 0.6pct to USD 90 a ton on Wednesday.

Dalian coking coal shed 0.1pct and Dalian coke slipped 0.2pct.

Shanghai stainless steel futures fell 0.4pct amid ample supply in China, dragging prices of key ingredient nickel lower.

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Steel purchasing managers' index recovers in November 2019
China

China's steel purchasing managers' index, or PMI, increased by 4.1 basis points month on month in November to reach 45.4, ending six straight months of drops, according to index compiler CFLP Steel Logistics Professional Committee.

Steel products and raw materials prices both witnessed some increases in November, driven by demand recovery, healthy margins and stronger crude steel production.

Coming into December, the cold weather is expected to reduce steel demand, especially in southern China, CFLP said. As a result, steel prices are likely to drop in December if no steel production curbs are introduced to reduce pollution.

The sub-index for steel production increased by 1.1 basis points from October to 43.4 in November on demand recovery. Steel mills also indicated they would lift purchasing of raw materials.

The sub-index for raw materials inventories rose by 1.3 basis points to 39.2. Meanwhile, the sub-index for new orders at steel mills in November was 43.8 points, up 12.2 basis points on the month, ending three straight months of sub-40 readings.

The sub-index for steel inventories dipped by 9.7 basis points from October to 27.1 in November.

Rebar stocks saw the biggest drop, down 20pct on the month, according to the index.

Lower finished steel inventories should help support steel prices.

In a separate steel PMI carried out by the Hebei Metallurgical Industry Association, November's headline reading rose by 4 points from October to 51.9. This means the index for China's major steel production province was stronger than for the country as a whole.

In Hebei, the sub-index for new orders in November increased by 6.7 basis points month on month to 55.3.

"Downstream demand was stronger than expected in November, which led to robust steel sales," the association said.

The sub-index for steel output was up 5.2 points on the month to 50.8, while the sub-index for finished steel stocks in November dropped by 1.2 points to 50.2. 

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Youli to commission magnesium sheet complex in Shandong
China

Youli showed its trust in Danieli Fata Hunter Twin Roll Casting technology with an order for a new plant to be installed in the new magnesium sheet complex in Shandong, China.

The new Twin Roll Caster will be designed for hot-rolled coils for strip from 4 to 7 mm thick (mechanical capacity up to 10mm) and in width from 900 to 1,425 mm.

The TRC stand features the well-known and already successfully proven configuration of the SuperCaster Plus with 15c inclination, to guarantee superb geometrical and mechanical properties of the final magnesium alloy AZ31B, a typical product for the automotive industry. The line is completed with pinch-roll, travelling shear and coiler.

A Danieli Fata Hunter Optiflow ceramic fiber nozzle is used to deliver the molten magnesium into the nip between the caster rolls. Any area where liquid metal may potentially be exposed to the atmosphere is protected by a cover gas.

Danieli Automation will develop and supply the full electrical and automation equipment for the casting line, along with on-line instrumentation and motors.

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SAIL expects to start rails production in two years - official
India

State-run Steel Authority of India Limited (SAIL) is planning to commence manufacturing of special quality rails for high-speed train corridors and metro projects in the next two years, an official said.

The steel maker could start making of the speciality rails at its Bhilai Steel Plant (BSP) in Chhattisgarh and IISCO Steel Plant at Burnpur in West Bengal, he said.

"We expect to commence head (hardened) rail project in two years. However, it is now in the planning stage. The capacity and investments have not been firmed up," SAIL's Bhilai Steel Plant CEO Anirban Dasgupta told PTI.

With more strength than the normal rails, the speciality product is used in metro rail projects and high speed train corridors.

"Feasibility studies will be carried out at BSP and Burnpur plant as only one facility will not be enough for SAIL, given the projected demand. The project would help for substituting imports," Dasgupta said.

He said the steel maker is in the process of hiring a consultant to carry out the feasibility studies.

According to reports, Indian Railways' track modernisation programme will require at least one mln tons of head-hardened rails in the next four-five years.

New metro rail projects in the country alone will spur demand for at least 500,000 tons of the speciality rails in the next couple of years.

The capacity of the Bhilai plant has been ramped up to produce two mln tons normal rails from 0.8 mln tons per annum after modernisation, Dasgupta said

In 2019 -20, the facility is expected to produce 1.3 mln tons, he added.

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ROGESA orders coke oven gas injection systems for blast furnaces
Germany

ROGESA Roheisengesellschaft Saar mbH (ROGESA), a joint subsidiary of both companies AG der Dillinger Huttenwerke (Dillinger) and Saarstahl AG, has awarded Paul Wurth with the order to design and supply coke oven gas injection systems for the company's blast furnaces No. 4 and No. 5 located in Dillingen/Saar, Germany.

With this new technology, coke oven gas will become a metallurgical process gas instead of being used for producing energy at low efficiency level. In its new role, coke oven gas will partially replace both pulverized coal and metallurgical coke as reducing agents in the blast furnace process, thus contributing to reducing the carbon intensity in the blast furnace as well as the carbon footprint of the overall ironmaking operations. ROGESA, Dillinger and Saarstahl consider the application of this technology as a bold step toward the hydrogen based ironmaking of the future.

In preparation of the project, Paul Wurth accompanied the customer in research work and pilot plant trials. Now, the order is being executed on a turn-key basis and includes design and engineering for the two coke oven gas injection sub-plants, supply of technological key items like flow control and check valves, supply and erection of vessels, piping and supporting structure, automation of the plants and integration into the existing process technology and plant configuration. As per the project schedule, coke oven gas injection shall start in summer 2020 at half of the number of hot blast tuyeres of No. 5 blast furnace with the aim to come to permanent injection at all tuyeres of both furnaces by the end of the same year.

Within Paul Wurth's strategy to come to a carbon neutral primary metallurgy, coke oven gas injection at tuyere level is a part of the company's portfolio of readily available solutions for stepwise CO2 emission reduction for existing integrated steel plants.

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Thyssenkrupp to launch cost cutting measures in a bid to revive steel unit
Germany

Thyssenkrupp, whose attempt to merge its steel operations with a rival was thwarted by regulators earlier this year, now plans to transform the business into its biggest profit engine, according to an internal memo seen by Reuters.

The German group told staff it aimed to boost earnings before interest and tax (EBIT) at Steel Europe by an average of up to 600 mln euros (USD 661 mln) over the coming years, helped by job cuts and selling more to the autos industry.

That would make it the backbone of the conglomerate's operations following an expected sale or listing of its elevator division, currently its best performing business by far.

Thousands of workers at Thyssenkrupp's elevator division staged protests at the group's headquarters in Essen, asking management for job protection.

Thyssenkrupp Elevator Technology (ET) could fetch up to 17 bln euros in a sale, which could help Thyssen repair its stretched balance sheet - at the expense of losing its cash cow.

Steel Europe will cut up to 1,000 jobs in administration and an additional 200 staff would be affected in its operating business, the letter said. The cuts are part of a job reduction program announced earlier this year.

Steel Europe's Heavy Plate and Electrical Steel businesses would either be restructured, sold or wound down, the letter added, with decisions expected in the coming months.

Heavy Plate, which employs 800 staff, has been under review since August.

Thyssenkrupp also said it planned to increase steel shipments to an average 11.5 mln tons a year, helped by a product drive in the car sector, the company's single-biggest customer group.

Last year, shipments totaled about 11 mln tons.

European Union competition regulators in June blocked a planned joint venture between Steel Europe and India's Tata Steel, forcing a strategic rethink at Thyssenkrupp.

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LatAm countries steel output drops 14 pct in Oct 2019 YoY
General News

The global slowdown in economic trade and activity since the beginning of 2018 made the global steel market return to conditions similar to 2016. With the downward trend in demand for steel worldwide, the expectation is that will capacity grow again in non-OECD countries, especially in China, and that the consumption of crude steel enters a plateau period until 2026. Latin America is the region with the lowest economic growth, and although the circumstances are different in each country, uncertainties predominate and the issue of economic inequality stands out.

Against the backdrop, the production of crude steel in October was 14pct lower than the same month of 2018, totaling 5,674 mln tons. The accumulated of the year until October was 8pct lower than the same period of 2018 (55,344 mln tons). The result also fell 4pct compared to the average of the first 9 months. Even so, the regional balance was positive, with an increase of 4pct in relation to the previous month (200,000 tons), of which Brazil represented 97pct, although this participation was 19pct lower than in October 2018.

In October, rolled steel production totaled 4,060 mln tons, the worst indicator since February. The result represents a 12pct decrease compared to October 2018 and 2.5pct in relation to the previous month. The year to date was 8pct lower than the same period of the last year, reaching 42,367 mln tons. The figure was also 5pct lower than the average of the first 9 months of the year.

In September, imports totaled 1,761 mln tons, which although they represented the best indicator since June, were 4pct below the results observed in the same month of 2018. The accumulated until September remained 3pct lower than last year's period (17,311 mln tons). However, the final figure fell 12pct since August and 9pct since the first 8 months of 2019. A positive point in the third quarter was the slight decrease of 1pct regarding the previous quarter of the share of Chinese imports, which represented 23pct of total imports.

Exports totaled 718,000 tons, an increase of 22pct compared to September 2018. The higher indicator since June, the result was also 11pct higher than that recorded in August, although the accumulated until September decreased 6pct compared to the same month of 2018 and the average of the first 8 months of the year. This result was driven by the 39pct drop in Argentine exports compared to August, which was offset by the 51pct increase in Brazil's steel exports. However, year to date, exports from these countries increased 6pct and 1pct, respectively.

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Metal Prices 3-Dec-19

Product Cash 3 Mons.
Nickel 13.595 13.620
Tin 16.745 16.675
Zinc 2.220,50 2.209
(USD/mt),
Source: LME.co.uk

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