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Sunday, July 12, 2020

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Gulf Countries Imports & Exports (2014-2018)


Middle East Steel News

Turkey: Steel exports to US grew by 58.5 pct in Jan-May 2020 YoY
UAE: Abu Dhabi's construction cost index stable in Q1 - SCAD
Saudi Arabia: Jeddah Municipality launches USD 61mln waterfront project
Saudi Arabia: Ministry issues 118 new industrial licences in June 2020
Kuwait: Awarded projects value slump in H1 amid virus outbreak

Global Steel News

China: Iron ore futures post biggest weekly gain since mid-May amid positive demand outlook
India: Tata Steel BSL's output and sales decline in Apr-June 2020
India: Moody's revises outlook for JSW Steel to negative
United States of America: Steel imports drop almost 17pct in H1 2020 YoY
Canada: ArcelorMittal Dofasco to modernize ladle metallurgy facility
General News: Global long steel products market to remain unstable in Q3 2020 - Irepas


New (Renewed) Steel Companies on MEsteel
Company Country Steel tons handled per year (kt) Brief Description
K.D. INDUSTRIES INC. FZE U.A.E. 50-100 Manufacturers of M.S. & G.I. Pipes, Tubes, Sheets & Plates.

Middle East Steel News

Steel exports to US grew by 58.5 pct in Jan-May 2020 YoY

Turkey's total steel export to the United States increased by 58.5 pct to 266,408 in the first five months of 2020.

In Jan-May 2020, Rebar exports were amounted to 87 pct of the total Turkish steel exports to the U.S. Turkish origin rebar exports to the U.S. were totalled 231,047 tons as compared to 26,369 tons in the corresponding year.

Robust construction activities, prior to coronavirus pandemic, and removal of antidumping duties on the major Turkish rebar producers by the U.S. Department of Commerce are the major factors contributed to the surge in rebar exports.

Pipes, tubes and OCTG exports dropped 78 pct to 19,169 tons.

Section steel, bars and tool steel exports also declined by 44.25 pct to 9,3754 tons.

Turkey exported 6,237 tons flat rolled steel, half of which included cold rolled steel, as compared to 36,638 tons, down by almost 83 pct YoY.

Other steel exports (wire drawn products, rail and stainless steel) were amounted to 576 tons.

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Abu Dhabi's construction cost index stable in Q1 - SCAD

Abu Dhabi's construction cost index (CCI) remained unchanged in the first quarter compared to the same period last year with the index at 98 pct in both corresponding quarters, according to the figures released by Statistics Centre - Abu Dhabi (SCAD).

The figures showed that the CCI decreased by 0.4 pct in the first quarter compared with the fourth quarter of 2019.

The index decreased from 98.4 pct in the fourth quarter of 2019 to 98 pct in the first quarter of 2020.

Prices of the 'manpower' group decreased by 2.8 pct in the first quarter of 2020 compared with the first quarter of 2019, while prices of groups of construction materials and mechanical works - A/C decreased by 2.6 pct and 2.2 pct respectively.

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Jeddah Municipality launches USD 61mln waterfront project
Saudi Arabia

Jeddah Municipality has announced the launch of a waterfront development project at Obhur at a cost of SR229 mln (USD 61 mln). The proposed 2.8 km waterfront project aims to develop over 180,000 sq. meters in the project area

The development work is projected to take 30 months to complete, as it involves re-paving of roads, construction of pedestrian squares and cyclists' corridors.

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Ministry issues 118 new industrial licences in June 2020
Saudi Arabia

The Saudi Ministry of Industry and Mineral Resources has issued 118 new industrial licences during June 2020 to factories holding with SAR 2.18 bln (USD 580 mln) of capital investments.

The newly-licensed factories will employ around 5,609 people, according to an official statement on Thursday.

Factories operating in other non-metals products accounted for the highest number of licences with 21, followed by plants working in the metal products industry, excluding machinery and equipment, as well as rubber and plastics industry with 16 licences each.

By June-end, the overall number of existing and under construction industrial facilities came at 9,211, compared with 9,094 at the end of May.

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Awarded projects value slump in H1 amid virus outbreak

Awarded projects value slump in H1 amid virus outbreak

The spread of coronavirus lowered the value of projects awarded by Kuwait to local companies by nearly 40 pct in the first half of 2020, news reports showed.

From around KD 840 mln (USD 2.77 bln) in the first half of 2019, the value of projects awarded to firms listed on the local bourse plunged to nearly 500 mln dinars (USD 1.65 bln), the Arabic language daily Alanba said, citing government statistics.

The decline was more underscored in the second quarter of 2020, when the value of contracts dipped by nearly 57 pct to 150 mln dinars (USD 495 mln) from around 350 mln dinars (USD 1.15 bln) in the second quarter of 2019, the report showed.

"The sharp decline in awarded contracts was mainly due to the repercussions of the Corona pandemic in Kuwait," the report said.

The largest contract in the first half of 2020 was awarded by the state-owned Kuwait Oil Company with a value of 127.7 mln dinars (USD 421.5 mln), the report showed.

Sector-wise, oil projects topped the list of awarded contracts this year, with a value of 221.3 mln dinars (USD 730 mln) or 44 pct of the total contracts.

Construction projects came second, with a value of about 157.3 mln dinars (USD 519 mln), nearly 31 pct of the total awarded contracts, according to the report.

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Global Steel News

Iron ore futures post biggest weekly gain since mid-May amid positive demand outlook

Iron ore futures slipped on Friday, but China's benchmark contract marked its biggest weekly gain since mid-May as optimism grew over prospects of demand in the world's top producer and consumer of steel products.

Prices came under pressure after Australian port data showed shipments of iron ore to China from the world's top export hub of Port Hedland climbed in June to a record of 46.2 mln tons.

The most-traded iron ore for September delivery on China's Dalian Commodity Exchange ended the session 0.1pct lower at 790.50 yuan (USD 112.79) a ton, snapping a five-day winning streak. For the week, it rose 6.3pct, the biggest weekly jump since the week ending May 22.

The Dalian contract has also risen 6.3pct so far in July, after a post-lockdown gain of 29pct in the second quarter.

Iron ore's August contract on the Singapore Exchange retreated 0.3pct to USD 102.82 a ton in afternoon trade after six straight sessions of gains.

This week, the spot price of benchmark ore with 62pct iron content scaled its highest in 11 months, to USD 107 a ton on Thursday.

"Iron ore drew support from strong China demand, together with supply disruptions in Brazil linked to COVID-19 restrictions on activity at some mines," said Ray Attrill, head of FX strategy at National Australia Bank, citing higher commodity prices' support for the Australian dollar.

June iron ore shipments from Port Hedland, used by three of Australia's top four iron ore miners, rose by 7pct from May's 43.18 mln tons, and were up 10pct from the same month last year.

Construction steel rebar on the Shanghai Futures Exchange edged down 0.8pct after a six-session rally, while hot-rolled coil dropped 0.5pct after a five-day advance.

Stainless steel lost 0.9pct.

Coking coal and coke also retreated, down 1.1pct and 1.8pct, respectively.

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Tata Steel BSL's output and sales decline in Apr-June 2020

Tata Steel BSL said its crude steel production fell over 41 pct to 659,000 tons during June quarter 2020 as compared with 1.12 mln tons in corresponding period a year ago, hit by COVID-19 pandemic.

The company's sales also declined 19.58 pct to 694,000 tons in the June quarter as against sales of 863,000 tons in the first quarter of 2019-20.

"Production and sales were impacted in the first quarter of 2020-21 as the outbreak of COVID-19 and ensuing mobility restrictions severely impacted industrial activity and consumer sentiment. This affected crude steel production and sales during the quarter," Tata Steel BSL said in a regulatory filing.

Tata Steel BSL said the company started ramping up its steel making operation at Angul, Odisha, in the second half of June 2020.

"Downstream facilities are also being ramped up progressively on the back of improvement in market demand and higher capacity utilisation, it said.

While April and May 2020 sales were lower, the company said it achieved the level of pre-COVID sales volumes in June 2020 with the phased opening of economic activity in India supported by ramp up of production, launch of branded products and higher exports sales.

Tata Steel BSL said it is closely monitoring the situation and taking appropriate actions as per the directions issued by the regulatory authorities from time to time keeping in view the health and safety of its employees and the community and the interests of its customers and other stakeholders.

"Tata Steel BSL continues to stay focused on managing costs and working capital, and ensuring adequate liquidity," the company said.

Tata Steel BSL, formerly known as Bhushan Steel, said it is India's fifth largest flat steel producing company with an existing capacity of 5.6 mln tons per annum as on March 31, 2020.

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Moody's revises outlook for JSW Steel to negative

Moody's Investors Service revised outlook for Sajjan Jindal-led JSW Steel to negative from under review reflecting deterioration in credit profile due to challenges brought by the pandemic.

"We believe that the company's financial metrics will likely recover to levels commensurate with the current ratings by the fiscal year ending March 2023 (fiscal 2023)," the agency quoted Kaustubh Chaubal, Vice President and Senior Credit Officer as saying.

"However, JSW's leverage and coverage will remain weak until that time, and the negative outlook indicates the risk of a downgrade if the steel industry does not recover as we currently expect or if there is a slower-than-anticipated recovery in the company's financial metrics," added Chaubal.

Moody's expects steel consumption in India, JSW's key operating market, to contract by at least 15 pct through fiscal 2021 because of weak automotive and manufacturing demand, even as infrastructure investments rise. India's economic growth will also remain materially lower than in the past with real GDP shrinking 3.0 pct.

A contracting steel market in India will hurt JSW, but this is partially mitigated by the company's market position and brand strength. Moody's further expects JSW will deploy any steel surpluses towards exports. The company's export shipments surged in Q1 of fiscal 2021 when domestic demand was soft. Key export destinations included South East Asia, Southern Europe, the Middle East and China.

The confirmation of the ratings also reflects JSW's inherently strong operating profile, with credit metrics supportive of a higher rating prior to the pandemic. The outlook on the company's ratings was positive until March 2020, when it was changed to stable in anticipation of a slow recovery in credit metrics.

The rapid and widening spread of the coronavirus outbreak, deteriorating global economic outlook, falling oil prices and asset price declines are creating a severe and extensive credit shock across many sectors, regions and markets. The combined credit effects of these developments are unprecedented. The steel sector has been one of the sectors most significantly affected by the shock, given its sensitivity to consumer demand and sentiment.

The negative outlook reflects Moody's view that tougher economic conditions in JSW's key markets will likely stay for an extended period and that there are significant downside risks from the pandemic, which could delay the company's recovery. The outlook also incorporates Moody's expectation that JSW's credit profile will remain weak for a prolonged period, with no meaningful recovery anticipated at least over the next 18-24 months.

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Steel imports drop almost 17pct in H1 2020 YoY
United States of America

Steel import permit applications in the United States fell 12.3pct to 2 mln tons in June as the coronavirus crimped demand.

It was, however, a 10.9pct increase from the 1.8 mln tons of steel the United States imported in May, according to the U.S. Commerce Department's most recent Steel Import Monitoring and Analysis data.

Last month, permits for finished steel products that would require no further processing in the United States fell 5.7pct to 1.4 mln tons, down from 1.5 mln tons in May. In June, imports of light shapes bars rose by 77pct, sheets and strip hot dipped galvanized by 68pct, cold finished bars by 55pct, line pipe by 39pct and structural pipe and tubing by 19pct.

So far this year, imports of light shapes bars are up 25pct and tin free steel by 20pct YoY, according to the American Iron and Steel Institute.

For the first six months of the year, imports of steel fell 16.9pct to 12.9 mln tons. Imports of finished steel products plunged 25.3pct to 8.7 mln tons, capturing 21pct of the market share in the United States.

So far this year, imports have grabbed 19pct of the market share.

The largest offshore suppliers in June were South Korea, Brazil, Taiwan, Germany and Japan. During the first six months of 2020, imports have fallen 21pct from South Korea, 41pct from Japan, and 40pct from Germany.

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ArcelorMittal Dofasco to modernize ladle metallurgy facility

ArcelorMittal Dofasco is one of several Canadian manufacturers that will share CAD 28.8 mln (USD 21 mln) in funding to support advanced manufacturing projects.

According to Next Generation Manufacturing Canada (NGen), the industry-led nonprofit that is administering the funding, the Canadian steelmaker will equip its secondary ladle metallurgy facility with digital tools to minimize manual intervention, reduce process variation and improve final metal properties.

"The project will transform a heavy industrial asset with the best in advanced sensor development, video machine learning, and cognitive and cloud computing," NGen said in a statement.

ArcelorMittal Dofasco has several partners on the project, including Tenova Goodfellow Inc., IBM Canada and i-5O, a North American specialist in AI vision systems.

Tenova Goodfellow said the sensor network that is to be installed will be based on an array of proprietary Tenova technologies, including two that are being applied to ladle furnace operations for the first time, along with a third optical technology that's never been applied to vacuum degassing.

"In addition, Tenova will develop a technologically advanced sensing network capable of providing critical real-time process measurements that are currently not available," it said.

ArcelorMittal Dofasco is Canada's leading steel producer with total production capacity of 5 million tons per year of flat rolled steel.

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Global long steel products market to remain unstable in Q3 2020 - Irepas
General News

According to the IREPAS (International Rebar Producers & Exporters Association) short range outlook for July 2020, the situation in the global long steel products market has not changed much since last month. There has been a reduction in both supply and demand around the world, except in China where output keeps growing. Demand in the global long steel products market is indeed not as bad as the newspapers and media outlets report. However, the mills operating at more than 60 pct capacity utilization rate are blessed. Of course, those operating under 50 pct are in trouble.

Covid-19 has certainly worsened the market situation. Backlogs of building applications and delays in investments will reduce demand for all steel products. But, so far long products have not been hit as hard as compared to flat products.

The pandemic has moved in a wave from Asia to America through Europe and the Middle East. In the Asian markets, demand has been strong during the past month, with industrial earnings strong in June in China. As the rest of the world is now gradually opening up following lockdowns, stimulus activities are buoying up the markets. Manufacturing and construction activities that had previously been completely halted in many places are gradually and simultaneously boosting demand.

A lot of private investments may be put on hold in the event of worsening sentiment. On the other hand, the public sector may use construction to stimulate the economy and inject money into it.

Reopening means utilization rates have been picking up from bottom levels. Scrap inventories were depleted in May as industry closures meant low scrap availability. June buying surpassed the levels for a normal month as scrap needed to be restocked.

When China reopened after its lockdown, the backlog of demand was so high that they returned within a very short period of time to almost the pre-Covid-19 volumes. On top of that, they took advantage of low prices of semi-finished steel such as billets and slabs and also of HRC to conclude purchases from the global market. Production in China is running smoothly and demand is good and will certainly remain strong up to the end of the year. Strong Chinese domestic demand keeps Chinese steel from depressing export destinations.

Demand from China has even helped the rest of the global industry in its rebuilding process. However, there is generally more competition in the global market at the lowest price.

The outlook for the next quarter is very good from the raw materials point of view as the markets are rebuilding and stimuli are adding a push. However, it is difficult to make a prediction for the long products side. It could be the worst quarter of 2020.

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New India Electricals Ltd

Metal Prices 10-Jul-20

Product Cash 3 Mons.
Nickel 13.070 13.108
Tin 17.080 16.958
Zinc 2.145,50 2.156,50
Source: LME.co.uk

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