By DeccanChronicle| 2017-02-21 08:59:18

World Steel Association has predicted the steel demand in India will grow at the rate of 5.7 per cent in 2017. Steel Minister Chaudhary Birender Singh New Delhi: Steel demand is expected to improve in coming months on the back of increased spending on infrastructure and long-term government policies, Steel Minister Chaudhary Birender Singh has said. "The steel demand has grown 3.3 per cent during April -December 2016. This is expected to improve in the coming months, due to long-term government policies and increase in infrastructure spend," the minister told PTI. India has been a bright spot in global economy, he said, adding that World Steel Association has predicted the steel demand in India will grow at the rate of 5.7 per cent in 2017. The government of India, he said, has provided extensive support to the domestic steel industry by way of various trade remedial measures in recent times, such as minimum import prices (MIP), anti-dumping and safeguard measures and quality control. "The current scenario in the steel sector is well known, and hence the government will take all necessary measures as and when required to support the industry," the minster said. MIP, he said, was notified as an emergency measure as other trade remedial measures such as anti-dumping rules and safeguard rules are process oriented and are time consuming in terms of implementation and impact. "However, MIP was gradually phased out as and when suitable trade remedial measures were put in place," he added. As on date, 124 out of 173 tariff lines, initially notified as MIP, are covered under anti-dumping duties in addition to the safeguard duties on Hot Rolled Coils and Plates. MIP has also been withdrawn on February 4, he added. Source: http://www.deccanchronicle.com

By Yuka Obayashi/ Christian Schmoll| 2017-02-21 08:48:17

Tokyo Steel Manufacturing Co Ltd , Japan's top electric-arc furnace steelmaker, will keep product prices unchanged for March delivery to make sure the steel market can digest the recent price hikes by the company. Tokyo Steel, which makes beams and bars used in the construction industry, last month raised product prices for a third consecutive month amid firmer international prices and healthy local demand. "We have decided to maintain prices for March so that local market prices would come in line with our revised prices," Tokyo Steel's managing director Kiyoshi Imamura told a news conference on Monday. "Export demand is improving as China reduces its exports while domestic demand for construction remains solid and is expected to pick up further this summer when more projects for the 2020 Tokyo Olympics are slated to start," he added. China's steel exports fell in 2016 from a record the previous year, dragged down by improved demand at home and Beijing's resolve to tackle overcapacity, in a relief for steelmakers elsewhere that compete with cheaper Chinese shipments. China's steel exports in January also fell 23.8 percent from a year earlier. Tokyo Steel's pricing strategy is closely watched by Asian rivals such as South Korea's Posco and Hyundai Steel Co, as well as China's Baoshan Iron & Steel Co (Baosteel). (Reporting by Yuka Obayashi; Editing by Christian Schmollinger) Source: Reuters

By Wang Lingxiao| 2017-02-20 08:50:47

BEIJING, Feb. 17 (Xinhua) -- China will be unwavering in its efforts to eliminate excess steel production capacity this year, an official said Friday. Xu Lejiang, vice minister of industry and information technology told a press conference, responding to concerns about the government's next steps after recent steel price hikes. "The government's resolution to downsizing the steel sector will not be shaken, and the efforts will not weaken," Xu said. Xu stressed that 2017 would be a crucial period for the capacity cut. China's steel companies suffered in 2015 as prices plunged due to serious oversupply, with huge losses across the whole industry. The government quickly moved with an array of measures, which have gradually revitalized the sector. The benchmark China Steel Price Index jumped 76.5 percent to 99.51 points throughout the whole last year, with price recoveries in both spot and futures markets. "Profiting companies saw their combined profits more than double from a year ago, while unprofitable companies slashed their losses by 51 percent," Xu said. Xu pledged measures to further stimulate the sector this year, including reductions of low-quality steel products and phasing out outdated and substandard capacity. Besides, more energy will be channeled into the settlement of loss-making "zombie companies," especially in the handling of debts and displaced workers, Xu said. Excess capacity weighs on China's overall economic performance, thus, cutting overcapacity is high on the reform agenda. Some 65 million tonnes of capacity was eliminated last year, beating the official target of 45 million tonnes. China plans to reduce steel output by a total of 100 million to 150 million tonnes from 2016 to 2020. Source: http://english.cctv.com

By CFM| 2017-02-17 10:26:45

Experts in China warmed that the inventory in China has risen to a high storage. We should prevent capitalists from driving up the price deliberately. To solidify the achievements of cutting capacity, and improve the efficient supply of steel, in recent days, National Development and Reform Commission, Ministry of Industry and Information Technology, General Administration of Quality Supervision, China Banking Regulatory Commission and China Securities Regulatory Commission has issued a notification regarding to accelerate the operation of steel market in a balance condition by further ensure to implement the principle of encouraging the growth of some sectors while discouraging the expansion of others. The notification stated that with the efforts of different parties, steel price in China were recovering and the output and sales of steel manufacturers were on the mend. However, in recent days, the steel price were going up significantly both in spot market and future market in a short time. The notification required large-scale steel companies should continue to lead the industry, and to set mill price of steel scientifically, to guide the price in a reasonable range. Some analysis said that since 2017, steel price in China has been surging. Especially after Spring Festival, the price in spot market and future market jumped significantly. However, the demand did not change. Thus, relevant departments of China were worried that the price would repeat the same history as the surging coal price, and the notification was made to steady the market.  Introduced by an industrial insider, since Spring Festival, the price started to soar. Based on some data, SHFE screw thread steel price was 3,391 Yuan per ton up to Feb. 15, up 8.93% versus Feb 3rd, up 18.94% compared with closed price 2,851 Yuan per ton on Jan. 3. The data showed that up to Feb 15, the hot rolled steel closed 3671.48 Yuan per ton, up 8.63% versus 3,379.78 Yuan per ton in on Feb 3, up 11.06% versus 3,305.85 Yuan per ton on Jan 3rd. "In fact, industrial insiders all know that the inventory of steel in China is still large.” The insiders said that profits of many manufacturers are float profit now. Actually, the inventory of steel reaches the same level as that in 2015 and it’s expected to go up in the future. The data on Mysteel.com shows that up to Feb 10, the overall steel inventory of China totals 15,788,000 ton, up 17.06% and 2.3039 million ton versus that in previous week, up 54% and 5.57758 million ton versus that in last month. The inventory of screw thread steel is 8.2096 million ton, up 3.0964 million ton versus that in last month. The inventory of wire rod is 2.47 million ton, up 1.1748 million ton versus than in last month.

By United States Steel Corporation| 2017-02-16 10:01:47

PITTSBURGH, Feb. 15, 2017 /PRNewswire/ -- United States Steel Corporation (NYSE: X) today issued the following statement in response to the company's decision to file a motion to withdraw without prejudice the trade secrets claim from consideration in the Section 337 complaint with the U.S. International Trade Commission (ITC). The company will continue to vigorously litigate the Section 337 claims related to antitrust and false designation. The company's statement follows: "We remain committed in our efforts to seek relief for each of the claims alleged in the Section 337 complaint, but today believe this was our best course of action. We continue to pursue a review before executive bodies of the inequities of the statutes that were enacted before the dawn of the Internet age and the substantial threats posed by cyber espionage. "While Section 337 offers U.S. companies the ability to seek relief against unfair methods of competition and the items being unfairly imported as a result of those actions, the decades old law never contemplated the technological advancements over the past 50 years that have led to the proliferation of cyber theft and other cyber crimes committed against American companies. "Today, businesses are more connected and data-centric than ever before, so they are more vulnerable to cyber theft. Whether the stolen data is proprietary trade secrets, business strategy or personal data related to customers, when a cyber attack by a state-sponsored actor is carried out upon our corporations, the unbearable burden for response is currently borne by the corporate victim. This threatens our nation's economic health and our security. "When we filed the case, we highlighted the significant cyber threat every company faces, and we began a dialogue about the need to reform our antiquated laws. We have made strides in that arena, but we believe more cooperation and collaboration is needed between the federal government and the private sector to address the continued threat of malicious cyber crimes and to provide reasonable legal avenues available for corporate victims to seek remedies. When there is active movement in this direction, we will be able to evaluate the best next steps for our trade secrets claim." United States Steel Corporation, headquartered in Pittsburgh, Pa., is a leading integrated steel producer and Fortune 250 company with major operations in the United States and Central Europe. For more information about U. S. Steel, please visit www.ussteel.com. SOURCE United States Steel Corporation

By Sohrab Darabshaw| 2017-02-14 09:14:19

Two years ago, India overtook the U.S. to become the third-largest steel producer in the world, but now finds itself a net importer of steel in 2015-16. To address this and other steel issues, the Indian government has drafted and recently released a “National Steel Policy” for 2017. The policy aims for production target of 300 million metric tons per year by 2030-31, up from the current 122 mtpy, a reduction in imports and also a hike in the current production of a crucial raw material, coking coal. India’s steel ministry says the policy is an effort in steel circles in India to steer the industry to achieve its potential and a strategy to overcome various hurdle such as high input costs, lack of availability of raw materials, and to try to achieve the 300 mtpy target in an environmentally friendly manner so that the country can reach its corresponding global efficiency benchmarks. A major disadvantage that the Indian steel sector faces is the limited availability of essential raw materials like coking coal, both in quantity and quality. Most steel producers have to depend on imports to overcome this impediment, mostly from neighboring China. The National Steel Policy aims at achieving increased domestic availability of washed coking coal so as to reduce import dependence on coking coal by 50% by 2030-31. Under the plan, India is aiming for per capita steel consumption of 160 kilograms per person from the present 61 kg. India’s crude steel production in 2015-16 was 89.77 million metric tons. The country’s steel sector, the only silver lining in an otherwise bleak global steel economy last year, faced challenges. Heightened steel demand domestically in India could see it get there. In 2015, for example, India was the only large economy in the world where steel demand continued to grow positively at 5.3%, against negative growth in China at -5.4%. The Steel Ministry is seeking comments on the policy draft from stakeholders and public. Source: http://seekingalpha.com

By EJOT| 2017-02-14 08:51:13

Acquisition of the Finnish company Sormat EJOT is expanding its activities in the Building Fasteners division In the course of a strategic expansion the EJOT Group has taken over Sormat, a company based in Finland. With this step EJOT is expanding its activities in the area of anchoring technology. Sormat is one of the leading manufacturers of fastening and anchoring technology in Northern Europe. Sormat products are available in more than 40 countries around the world. The company, which currently employs 80 people, was founded in 1970. The high-quality heavy load fixings serve different target. This acquisition strengthens EJOT's activities in the field of heavy load and anchoring technology. „We see great opportunities in this merger to open up new customer groups“, emphasizes Christian Kocherscheidt, CEO and shareholder of the EJOT Group. The basis for this are complementary product ranges and areas of competence, as well as the same values for which we stand: quality, innovation and service. The EJOT Group is represented in 32 countries with its own production and sales companies and generates a turnover of 450 million euros with 3,000 employees. Source: http://www.ejot.com

By PTI| 2017-02-13 09:02:49

NEW DELHI: Any move by the government to extend further protection to large steel makers by imposing anti-dumping duties would be detrimental to small and medium enterprises, engineering exporters' body EEPC India has said. The statement comes soon after the government extended anti-dumping duty by two months on certain cold-rolled flat steel products from four nations including China and South Korea to guard domestic industry from cheap imports. "Small and medium enterprises, particularly those engaged in a fiercely competitive export markets, have strongly opposed any move by the government to extend further protection to the large steel makers by way of anti-dumping duties or other measures. "Any move to further protect the steel makers, most of whom are large scale big houses, would be at the cost of hundreds of thousands of the SMEs whose product cost is rising because of increase in steel prices," EEPC India Chairman T S Bhasin told PTI. He said the profits and the sales realisations of steel firms have shot up significantly in the last two quarters and their shares have seen a sharp run in the stock markets as well, signifying that they do not need protection. "This tendency of converting MIP into anti-dumping is harming the SME steel users which are highly job-oriented," Bhasin pointed out. The government did not extend the protectionist minimum import price (MIP) on 19 colour-coated steel products. It had imposed minimum import price (MIP) on these 19 products, which are mainly colour-coated steel items, till February 4. However, the government may impose anti-dumping duty on these 19 colour-coated steel products if required, Steel Secretary Aruna Sharma had said earlier. Source: The Economic Times

By Khairie Hisyam Aliman| 2017-02-13 00:00:00

This article first appeared in The Edge Financial Daily, on February 13, 2017. KUALA LUMPUR: Many metal stocks have risen sharply of late, mainly due to improving sentiment for commodities in general, supported by China’s commitment to tackle current excess capacity in its steel sector. A check on 25 steel companies listed on Bursa Malaysia shows that more than half are trading at double-digit price-earnings ratios (PER), ranging from 10.33 times to as high as 74.32 times. Among the big players, YKGI Holdings Bhd and FACB Industries Incorporated Bhd are trading at PERs of 74.32 times and 25.28 times, respectively. In theory, the higher the PER ratio, the more expensive the stock. However, analysts see opportunity for investors to get into selective stocks for dividend play. According to them, as steel prices continue to rally leading to some steel stocks’ prices to triple over the past year, a valuation gap is seen emerging that may open the door for an opportunistic dividend play. "If things remain the status quo, the mid-tier stocks are bound to catch up eventually [in terms of PER valuation],” a senior industry executive told The Edge Financial Daily. "There could be opportunities for dividend play [as the steel companies’ earnings rebound following years of grappling with the surge of cheap Chinese imports into the local market], especially when a number of companies in the space are family controlled,” he added. Traditionally, family-controlled firms are seen paying some of the highest dividend payouts. But that’s assuming these family-controlled steel companies whose valuation is lagging behind top-tier stocks, see a surge in profit and their share price continue to improve. Taking away stocks with PERs at the extreme end such as YKGI and Tatt Giap Group Bhd’s 0.6 times, there are currently four steel stocks trading at single-digit PERs comprising Mycron Steel Bhd (8.87 times), CSC Steel Holdings Bhd (8.56 times), Leon Fuat Bhd (7.99 times) and Eonmetall Group Bhd (5.99 times). According to the Malaysian Iron and Steel Industry Federation, imports of steel products from China surged 281% to 3.44 million tonnes in 2015 from 904,000 tonnes in 2010 after the Asean China Free Trade Agreement took effect in January 2010. When contacted, several fund managers and analysts concurred that there is an opportunity for dividend play among the steel stocks, although some remained sceptical due to the cyclical nature of the steel sector which makes dividend payouts not sustainable in the long run. In February this year, China announced that it will work to cut steel output by up to 150 million tonnes although it did not specify a time frame. The move will cut 500,000 jobs in the steel sector alone, Bloomberg quoted China’s human resources ministry as saying. China has also committed 100 billion yuan over two years to aid retrenchment schemes, although this fund is also intended for job cuts in the coal sector. These developments have helped steel prices in Malaysia to recover, alongside rising energy prices and local safeguard duties announced in September for rebar imports. The duties, which took effect for 200 days beginning Sept 26, 2016, are 13.9% for steel coils and 13.4% for reinforced bars respectively. The safeguard duties would be reviewed again in April, according to news reports. "There were questions about whether China would really hurt its own steel production, but they have been cutting and seem to have the resolve to do this,” said a senior analyst with a local bank-backed research house. "If the steel production capacity continues to fall, then yes, the worst is over [for Malaysian steel players],” he added. According to a monthly survey by the Construction Industry Development Board, mild steel round bars in Selangor averaged just under RM2,500 a tonne last December, compared with RM1,800 a tonne a year ago. "For cyclical sectors such as steel, dividends would be a bonus,” the senior analyst said. However, two senior fund managers warned that this may not mean the sector is heading in the direction of recovery. They pointed to steel players’ tight cash flow and compressed margins in a high-capital business environment. For one fund manager, that casts doubt on dividend hopes in general, as any dividend would “depend on [the company’s] cash flow. Their cash flow is very much affected by the commodity cycle and is very hard to predict.” Do steel stocks still have legs? While a couple of market observers opined that the steel recovery prospects in general have not been fully priced in, they are of the view that the cheaper buys in the sector have all been taken. "The lowest phase has clearly passed and every day the rally continues, the more uncertain it becomes on where we are at the current upcycle,” noted one market observer. “Everyone is assuming things will recover and that things in the steel sector will remain the status quo. But the market is ignoring [possible risks] ahead.” They include uncertainty over what US President Donald Trump might do amid signals of increasing protectionism from the world’s largest economy. "The very obvious risk is what would Trump do? If he puts a border tax across the board on imports, a lot of our steel exports can’t get into the US. Our steel exports are not big, but it would impact global steel prices and that would spill over into our steel sector,” said one analyst. In addition, while steel product prices have recovered, demand outlook is mixed. A fund manager opined that while major infrastructure projects announced by the government may support demand, that boost is offset by a slowdown in the housing sector, another primary driver. Such infrastructure works include the Mass Rapid Transit project and the upcoming RM55 billion new East Coast Rail Line that will connect the Klang Valley to the East Coast via 600km of rail tracks. The Malaysian Steel Institute (MSI), an agency under the ministry of international trade and industry (Miti), estimates a full-year steel products consumption of at least 10.4 million tonnes in 2017, slightly higher than the expected figure for 2016 which will only be confirmed after December’s data is released in early March. It is understood that MSI and Miti have been pushing to promote the use of local steel products in construction works to boost consumption of the local steel sector’s output. For investors looking at value buys amid the ongoing rally in the steel sector, a key factor to watch out for is the cost structure, said several fund managers. This means examining the sub-niches of each player, their type of facilities and comparing them against direct peers. In addition, a look at major shareholdings may add another dimension of interest for those looking to bet on dividends from a potential year of earnings recovery. "The more efficient players would have a higher net profit margin,” said another analyst. “Also look at how good the management are and how new is their steel milling facilities — newer usually means more efficient.” Source: The Edge Financial Daily

By Taniya Umar| 2017-02-10 00:00:00

According to a company noticed forwarded to the Pakistan Stock Exchange (PSX), International Steel Limited (ISL) has announced that the National Tariff Commission (NTC) is going to impose anti-dumping duty on galvanized steel coils and sheets, for five years. This decision will take effect from February 8th, 2017. This decision has been taken after an anti-dumping investigation was launched in August, 2015 by the NTC, upon the request of the domestic galvanized steel producing industry of Pakistan. The Inquiry Commission found out that the dumping of Chinese steel in Pakistan was causing significant damage to the local industry. The commission found out that the local industry wasn’t just suffering material injury but also price undercutting, price depression, negative effects on cash flow and a decline in market shares, capacity, sales and decrease in utilization and inventory as well. The duty imposed is upon cost and freight (C&F) value in advance value, on galvanized steel products produced and exported from China. The dumping margin as determined by the NTC is as follows: 40.47% for Angang Steel Company Limited, Anshan City, China 31.31%  for Hebei Iron and Steel Company Limited, Handan City China 9.13% for Bengang Steel Plates Co. Ltd, Benxi City, China 6.09% for Maanshan Iron and Steel Company Limited, Maanshan City, China The duty will not be imposed on steel from other sources and any products that use the material for the sole purpose of export. The NTC was made functional again after a year of inactivity when the Prime Minister appointed its chairman and four other members; thus, fulfilling the long-standing demand for action to be taken by the local industries. Previously, the domestic industry had suffered due to the inactivity of the NTC regarding the act of dumping which is the practice of importing raw materials from cheaper, foreign sources that make their way into the domestic market. This severely harms the local producers and industries that are already affiliated with the business. Apart from handling the aforementioned issue, the NTC also deals with trade remedies to solve any problems that local producers or industries might be facing, rationalizing tariffs and proposals for reforms for tariffs, etc. The NTC also deals with any other trade reforms that beg the attention of the Federal Government. Source: http://pakwired.com