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Turkey: HRC imports drop 11 pct in Jan-Jul 2022 YoY
Turkey: Hidrokon uses SSAB's high strength steel for crane manufacturing
Egypt: Ministry extends scrap export ban
Saudi Arabia: Sumou Real Estate signs agreement to build housing units in Dammam
UAE: RTA awards construction contracts for internal roads in Dubai

Global Steel News

Canada: Algoma lowers earning guidance for Q2 FY23
Brazil: ArcelorMittal to commission rolling mill and reheating furnace at Barra Mansa Works
Brazil: Vale, Posco and Dongkuk to sell stakes in CSP to ArcelorMittal
United Kingdom: British Steel seeks financial assistance from government
Australia: BHP expects steel demand to increase amid global decarbonization efforts


New (Renewed) Steel Companies on MEsteel
Company Country Steel tons handled per year (kt) Brief Description
AL GURG BUILDING SERVICES CO.LTD (L.L.C.) U.A.E. 100-500 Manufacturer of Steel Welded Wire Mesh and Trader Steel Deformed Bars and Structural Steels
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Middle East Steel News

HRC imports drop 11 pct in Jan-Jul 2022 YoY

Turkey's imports of HRC fell nearly 11 pct YoY to 2.92 mln tons in the first seven months of 2022, according to the data from Turkish Statistical Institute (TUIK).

In Jan-Jul 2022, Russian HRC imports decreased significantly by more than 56 pct YoY to 553,480 tons.

Chinese and Indian HRC suppliers have increased their exports to Turkey in the given period.

HRC imports from India increased by 62 pct on-year to 509,550 tons. Chinese HRC imports rose sharply to 418,240 tons as opposed to 144,800 tons in the same period last year.

According to the data, Japan exported 240,328 tons of HRC in Jan-Jul 2022, down by 15 pct YoY.

Other notable HRC suppliers to Turkey were France (228,770 tons), Brazil (184,400 tons) and the UK (121,650 tons).

In July, HRC imports into Turkey declined by 13.6 pct YoY to 483,980 tons.

HRC import offers are at about USD 620-640 per ton CFR. Local HRC mills are offering prices in the range of USD 680-700 per ton EXW.

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Hidrokon uses SSAB's high strength steel for crane manufacturing

The incorporation of Strenx high-strength steel from SSAB has enabled Hidrokon to make its crane components lighter, safer and more durable.

Located in Konya, in the Anatolian region of Turkey, Hidrokon has been producing cranes since its establishment in 1993.

"Weight is a critical factor in our designs. Our goal is to make our crane components both high strength and light weight," says Hidrokon's founder Memis Kutukcu, adding that Strenx steel products are known globally for their reliability, something that is especially crucial in the crane industry, where safety is of paramount importance.

Hidrokon develops, designs and manufactures four principal crane product groups. The first is the knuckle boom crane, its flagship design, that continues to be in great demand mainly on the domestic market. The second is the loader crane series, developed both for the European and global markets.

The third is the telescopic boom crane, which is used for applications on vehicles, mainly in the Far East and Eastern European markets. The last product category is marine cranes that are used in applications such as fish farming and fishing net collection.

In 2015, Hidrokon introduced SSAB's Strenx high-strength steel into its production.

Since mobile cranes are mounted on vehicles, the weight of the crane and the capacity of the carrier vehicle are decisive factors for Hidrokon.

Kutukcu admits that upgrading from mild steel to Strenx high-strength steel has significantly increased the reliability of his company's products.

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Ministry extends scrap export ban

The Trade Ministry has banned the export of salvaged and scrap metals for six months, starting from October 1, 2022, in a bid to help manufacturers struggling with price hikes and shortages of raw materials, it announced in a statement.

Scrap copper, lead, aluminum, and zinc are subject to the export ban, which came after the Federation of Egyptian Industries called on the government to protect factories from rising input costs and mitigate supply chain disruptions.

The move comes a few weeks after the ministry slapped a three-month export ban on staple food commodities to shore up supplies amid turmoil in the global food market caused by the Ukraine conflict.

The inflationary wave set off by the war has heavily impacted steel and other building materials. Rebar prices have jumped to around EGP 21,000 (USD 1,073) per ton from EGP 15,500 (USD 792) per ton over the course of two weeks due to a significant rise in imported scrap prices, which accounts for around 60pct of the cost of steel, head of the FEI's metal industries division Mohamed Hanafy said last month.

1 USD / 19.56 EGP

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Sumou Real Estate signs agreement to build housing units in Dammam
Saudi Arabia

Saudi Arabia's Sumou Real Estate Co. has signed an agreement with state-owned National Housing Company (NHC) to develop housing units in Al-Aali project in Dahiyat Al Wajihah, Dammam, for USD 81.02 mln.

Construction will commence the next day after receiving the land from NHC, which covers an area of over 72,924 square metres in the project's zone 4A and 4B, the company said in a statement to the Saudi stock exchange.

The project is expected to be completed in 36 months.

In August, NHC signed agreements with four real estate companies to develop housing projects in Dammam and Qatif governorates.

The agreements were signed with Tilal Real Estate Company, Sumou Real Estate Company, Maya Real Estate Development and Investment Company, and Tamkeen Real Estate Development Company for the second phase residential project in the Al-Wajiha suburb in Dammam.

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RTA awards construction contracts for internal roads in Dubai

Dubai's Roads and Transport Authority (RTA) has awarded a contract for construction of internal roads and lighting works at four residential communities in the emirate - Margham, Lahbab, Al Lesaily and Hatta.

The project, which covers roads extending 37 km in total, also includes road works running over 21 km long and adding streetlights for existing roads stretching 16 km. The project is expected to be completed by the end of 2023.

Announcing the contracts, Mattar Al Tayer, the Director-General and Chairman of the Board of Executive Directors of RTA, said: "The internal roads project covers the construction of roads extending 8 km in an area on the Dubai-Al Ain Road, nearby Skydive Dubai. The infrastructure works also include rainwater drainage networks and streetlights."

On the Lahbab project, he said it involves paving roads extending 4 km along with infrastructure works of rainwater drainage and streetlights. The project scope also covers lighting works of the existing streets extending 2 km at the Dubai-Hatta Road beside Lahbab Camels' Race Track.

On the Al Lesaily project, Al Tayer pointed out that the internal roads span 7 km. "The project includes road works at Saih Assalam near Last Exit and Al Qudra Lake over more than 14 km, the project serves about 2,900 residents and improves the entry/exit points of the area," he added.

On Hatta, RTA chief said the project covers the construction of roads extending 2km at Hatta, specifically at Sa'aeer, Al Salami and Suhaila in addition to infrastructure works that include rainwater drainage and streetlights.

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Global Steel News

Algoma lowers earning guidance for Q2 FY23

Algoma Steel Group Inc., a leading Canadian producer of hot and cold rolled steel sheet and plate products, provided guidance for its fiscal second quarter 2023.

Algoma has had several operational issues in recent months, and now it has given investors guidance that adjusted earnings before interest, taxes, depreciation, and amortization (EBITDA) is expected to be in a range of just CAD 75-80 mln (USD 54-58 mln). That compares to CAD 358 mln (USD 259 mln) in the prior quarter and about CAD 431 mln (USD 311.7 mln) in the prior-year period.

Michael Garcia, the company's Chief Executive Officer, commented, "Our projected fiscal second-quarter results largely reflect previously disclosed operational challenges, as well as the continued decline in prices for our finished products, both of which had a negative impact on overall profitability."

Mr. Garcia continued, "In the quarter we experienced a production shortfall due to various operational challenges, resulting in a decline in shipments to an estimated 415,000 to 425,000 tons for the quarter. The most significant of these challenges was the previously disclosed plate mill modernization commissioning delay. Additionally, volume through our direct strip production complex (DSPC) was negatively affected by production shortfalls mainly due to temporary workforce availability events. We are implementing various measures to address these issues. We believe most plate mill issues are behind us and we are now operating above 80pct capacity. We continue to work with our vendor on mill automation software to reach our full product lineup and capacity. With respect to the coal conveyor that was damaged by fire in the quarter resulting in higher costs, repair work is expected to be completed in early October, allowing internal coke production to return to 100pct capacity."

"Amid the challenges faced in the quarter, we continue to see steady demand for our products and are advancing the development and construction of our transformative Electric Arc Furnace project, which remains on time and on budget for a mid-year 2024 start-up. Additionally, we are pleased to have reached a labour agreement with our unionized workforce that provides labour security for the next five years."

1 USD / 1.38 CAD

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ArcelorMittal to commission rolling mill and reheating furnace at Barra Mansa Works

ArcelorMittal Brasil has ordered new rolling mill for long products from Danieli.

A new complete rolling mill and reheating furnace will be installed at Barra Mansa Works to produce 400,000 tons per year of quality bars and medium sections, increasing the production capacity of the plant at the most competitive OpEx.

The mill will produce profiles, spring flats, angles-channels-beams, rounds, and squares, from 6- to 12-m-long square billets and blooms reheated by the new Centro Combustion walking-beam furnace, according to final product and process needs.

The complete, 15 housingless stand mill will feature a rake-type cooling bed with a water-cooling system and heat-retaining hoods based on process requirement and a multi-strand straightening machine with a quick-changing device, followed by finishing services.

The stacking facilities will supply packages between 4.3- and 15-m long, weighing between 1.5 and 5 tons.

Danieli Automation process control and systems will ensure easy operation and material tracking throughout the entire process.

In addition to engineering and technological supply, the contract includes on-site training and advisory services.

Expected to start operation within mid-2024, this will be the 48th Danieli rolling mill in Latin America.

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Vale, Posco and Dongkuk to sell stakes in CSP to ArcelorMittal

Vale S.A. informed that it has entered, together with its partners Posco Holding Inc. and Dongkuk Steel, into a binding agreement with ArcelorMittal to sell their respective stakes in Companhia Siderurgica do Pecem (CSP), the company said in a press release.

Under the terms agreed, the enterprise value of the transaction is approximately USD 2.2 bln which will be used to prepay the outstanding net debt balance of approximately USD 2.3 bln.

The closing of the transaction is subject to customary corporate and regulatory approvals.

Located in Ceara, Brazil and founded in 2008, CSP is a joint venture between Vale (50pct), Dongkuk (30pct) and Posco (20pct) and has an installed capacity of 3 mln tons of steel slabs per year.

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British Steel seeks financial assistance from government
United Kingdom

The owner of British Steel, the UK's second-biggest steel producer, is understood to be seeking an urgent package of financial support from the government.

Jingye Group, which bought the company out of insolvency just two years ago, has told ministers that its two blast furnaces are unlikely to remain feasible unless the Scunthorpe-headquartered company is granted financial aid, Sky News has reported.

The company employs about 4,000 people, while thousands of additional jobs depend on the company in its supply chain.

While the exact figure for the amount sought by the Chinese industrial group is unknown, Sky insiders suggest that the owners would need "hundreds of mlns of pounds" to keep operations running.

The government declined to confirm the reports but said it was "working at pace with the company to understand the best way forward as it seeks to secure a more sustainable future".

A spokesperson for the Department for Business, Energy and Industrial Strategy said: "We recognise that businesses are feeling the impact of high global energy prices, particularly steel producers, which is why we have announced the Energy Bill Relief Scheme to bring down costs.

British Steel said it was "investing hundreds of mlns of pounds in our long-term future", but added: "Like most other companies we are facing a significant challenge because of the economic slowdown, surging inflation and exceptionally high energy and carbon prices.

"We welcome the recent announcement by the UK government to reduce energy costs for businesses and remain in dialogue with officials to ensure we compete on a level playing field with our global competitors."

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BHP expects steel demand to increase amid global decarbonization efforts

BHP Group Ltd lifted its long-term demand forecast for steel as a global shift towards the decarbonisation of power generation will boost requirement of the commodity, the world's largest listed miner said.

The Australian miner forecasts surging demand for wind and solar farm equipment to boost steel demand by 2pct in 2030 and by 4pct in 2050.

The miner expects global steel consumption to increase by 42 mln tons and 76 mln tons in 2030 and 2050, respectively, with a sizeable chunk due to demand for solar and wind power equipment.

The world's steel production stood at 1.95 bln tons in 2021, according to the World Steel Association.

BHP Group is one of the biggest iron ore producers in the world. Iron ore, the most important ingredient in making steel, brought in nearly half of the miner's fiscal 2022 revenue.

A global push towards the decarbonisation of power generation comes as the world grapples with an energy crisis even as the improved cost efficiency and competitiveness of renewable energy has attracted massive investment as well as favourable policies globally.

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