Tag: steel

Core sectors’ growth slows down to 1.8% in January

KV Prasad Jun 13, 2022, 06:35 AM IST (Published)

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The growth of eight core sectors slowed down to 1.8 per cent in January due to fall in output of crude oil, refinery products and electricity, official data showed Thursday.

Eight infrastructure sectors — coal, crude oil, natural gas, refinery products, fertilisers, steel, cement and electricity — had expanded by 6.2 percent in January 2018.

Production of crude oil, refinery products and electricity contracted by 4.3 percent, 2.6 percent and 0.4 percent, respectively, in January.The growth rate of coal and cement sectors slowed to 1.7 percent and 11 per cent in January as against 3.8 percent and 19.6 per cent in January 2018, respectively.

However, natural gas, fertilisers and steel output grew by 6.2 percent, 10.5 per cent and 8.2 percent respectively in the month under review.
Sluggish infrastructure sector growth would also have an impact on the Index of Industrial Production (IIP) as these segments account for about 41 percent of the total factory output.

According to the Commerce and Industry Ministry data, during April-January 2018-19, the eight sectors recorded a growth rate of 4.5 per cent against 4.1 per cent in the same period of the previous fiscal.

Elon Musk forms several ‘X Holdings’ companies to fund potential Twitter buyout

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Thursday’s filing dispelled some doubts, though Musk still has work to do. He and his advisers will spend the coming days vetting potential investors for the equity portion of his offer, according to people familiar with the matter

KV Prasad Journo follow politics, process in Parliament and US Congress. Former Congressional APSA-Fulbright Fellow

Government extends exemption on some imported grades of steel to April 17

KV Prasad Jun 13, 2022, 06:35 AM IST (Published)

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The government on Wednesday extended compliance deadline on tougher import rules for some grades of steel, primarily used by automakers until April 17, according to a steel ministry statement.

Compliance to the new rules had been earlier set for Feb. 17, but strict adherence to the regulations would have stalled production for India’s auto industry, a central minister has warned.

India’s auto manufacturing sector is dominated by Maruti Suzuki India Ltd, Hyundai Motor Co, Honda Motor Co and Ford Motor Co.

Auto companies had asked for an extension until the end of 2019.

Elon Musk forms several ‘X Holdings’ companies to fund potential Twitter buyout

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Thursday’s filing dispelled some doubts, though Musk still has work to do. He and his advisers will spend the coming days vetting potential investors for the equity portion of his offer, according to people familiar with the matter

KV Prasad Journo follow politics, process in Parliament and US Congress. Former Congressional APSA-Fulbright Fellow

ArcelorMittal buys back shares worth $89 million

KV Prasad Jun 13, 2022, 06:35 AM IST (Published)

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Global steel giant ArcelorMittal on Tuesday said it has repurchased four million shares worth $89 million under its share buyback programme.

The steel major bought back shares at an average price of 19.894 euro. The company on February 7 had announced the launch of the share buyback programme.

“ArcelorMittal has repurchased 4 million shares for a total value of approximately Euro 79,577,540 (equivalent $89,679,370) at an approximate average price per share of Euro 19.894,” the company said in a statement.

The shares acquired under this programme “are intended to meet ArcelorMittal’s obligations arising from employee share programmes”, it added.

Elon Musk forms several ‘X Holdings’ companies to fund potential Twitter buyout

3 Mins Read

Thursday’s filing dispelled some doubts, though Musk still has work to do. He and his advisers will spend the coming days vetting potential investors for the equity portion of his offer, according to people familiar with the matter

KV Prasad Journo follow politics, process in Parliament and US Congress. Former Congressional APSA-Fulbright Fellow

Thyssenkrupp presses on with split as profits rise

KV Prasad Jun 13, 2022, 06:35 AM IST (Published)

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German industrial conglomerate Thyssenkrupp on Tuesday confirmed its earnings forecasts for the full year after increasing profits in its first quarter, while announcing a January 2020 vote on its split into two separate firms.

Net profit at the group rose 69 percent between October and December, to 136 million euros ($ 153 million).

Revenues at the steelmaker, whose product range stretches from submarines to elevators and car parts, edged two percent higher to reach 9.7 billion euros.

Meanwhile adjusted operating profit fell 26 percent, to 333 million.
“Thyssenkrupp is operating in attractive markets and our fundamental growth drivers are intact,” chief executive Guido Kerkhoff said.
“But the figures also show that we have to keep pressing forward with our performance programmes in all business areas,” he added.

The group said increased sales across all its business areas, notably the elevator business in Europe and North America, contributed to its higher revenues.

But even the standout division saw lower profits as higher raw material costs and tariffs on materials imports into the United States made themselves felt.

Based in Rhineland industrial city Essen, low water levels on the vital river artery following a hot, dry summer “severely” impacted Thyssenkrupp’s steel business by slowing shipping.

And the slowdown in production in the car industry following the introduction of new, tougher emissions tests also temporarily reduced demand for Thyssenkrupp’s products.

Although Thyssenkrupp said “economic and political uncertainties are growing” and casting a shadow over the business, the group maintained its forecast for 2018-19 of adjusted operating profit above one billion euros — around 30 percent higher than the previous financial year.

Net profits should also “increase significantly” from the 60 million euros booked in 2017-18, the group also predicted.

A major contributor to the fatter bottom line should be “positive effects arising at the closing of the steel joint venture” with the European operations of Indian giant Tata.

The European Commission’s green light is still needed for the merger.
In the group’s broader restructuring, launched last year under pressure from activist shareholders, the group said investors would have a vote in January 2020 on its split into two listed companies.

Of the new twin Thyssenkrupps, one known as “Industrials” will combine the elevator, car components and factory-building businesses.
Its counterpart, “Materials”, will group together steel and the shipbuilding unit.

“Both companies are to commence operations at the start of the next fiscal year on October 1, 2019,” Thyssenkrupp said.

Elon Musk forms several ‘X Holdings’ companies to fund potential Twitter buyout

3 Mins Read

Thursday’s filing dispelled some doubts, though Musk still has work to do. He and his advisers will spend the coming days vetting potential investors for the equity portion of his offer, according to people familiar with the matter

KV Prasad Journo follow politics, process in Parliament and US Congress. Former Congressional APSA-Fulbright Fellow

Steel firms meet government officials to seek rise in import duty

KV Prasad Jun 13, 2022, 06:35 AM IST (Published)

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Executives from top Indian steel companies met with government officials on Wednesday and sought an increase in duties on imports of steel to check surging shipments from overseas, two sources with direct knowledge of the matter said.

Top Indian steel producer JSW Steel attended the meeting in which companies asked the government to implement higher duties or other short-term emergency measures to curb imports, the sources said.

JSW Steel did not immediately respond to a request seeking comment.

Indian steel firms are putting pressure on the nation’s government to impose higher duties on imports as trade disputes and a global economic slowdown divert surplus Asian steel stocks to India, Reuters reported on Tuesday.

India’s steel imports from Korea rose 30 percent during the nine months ended on Dec. 31, while imports from Japan rose 28 percent during the same period, the sources said.

The steel ministry did not immediately respond to a request seeking comment. It has not yet made data on country-wise imports for the period public.

Elon Musk forms several ‘X Holdings’ companies to fund potential Twitter buyout

3 Mins Read

Thursday’s filing dispelled some doubts, though Musk still has work to do. He and his advisers will spend the coming days vetting potential investors for the equity portion of his offer, according to people familiar with the matter

KV Prasad Journo follow politics, process in Parliament and US Congress. Former Congressional APSA-Fulbright Fellow

JSW Steel, Duferco in talks on landmark steel pre-payment deal

KV Prasad Jun 13, 2022, 06:35 AM IST (Published)

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JSW Steel and global trading firm Duferco are in advanced talks on a five-year cash-for-steel prepayment deal, four sources familiar with the matter said, in a rare move for the industry.

JSW, India’s biggest steelmaker, and Duferco had a prepayment deal in 2006 for $150 million in upfront cash that would be repaid over seven years with steel cargoes, but the scale of the proposed new deal is much larger.

Two sources said the deal, expected to be signed this quarter, would be worth about $600 million. Switzerland-based Duferco, backed by banks, would provide the cash to be repaid with physical steel.

Duferco, one of the world’s largest steel trading firms, declined to comment. JSW did not confirm the value of the deal, but said it has a longstanding relationship with Duferco that involves financing arrangements.

One of the sources said JSW was looking for alternate sources of funding while, for Duferco, the deal would lock in future sales of steel with its clients.

Jeff Kabel, chairman of the International Steel Trade Association (ISTA), said the deal would represent “a great move forward” for an industry that has seen few such arrangements to date.

Steel derivatives, which allow buyers and sellers to lock in future prices, are still in their infancy, making trade houses wary of pre-paying for large tonnages and risk prices moving against them in the future.

Such deals are frequent in commodities such as oil, with liquid derivatives markets that allow for hedging future sales.

A $600 million dollar deal would equate to about 1 million tonnes of steel supply.

“Its rather innovative. The only thing steel companies usually do is pre-export finance and not that big a number,” said Kabel, referring to financing options that do not involve repayments in physical cargoes.

In 2013, as banks increasingly withdrew from Europe’s steel sector, Duferco moved to offer its clients trade financing, though these deals typically involved it acting as a bank, not taking delivery of steel.

JSW plans to expand steelmaking capacity by 2030 to between 44 million tonnes and 45 million tonnes from 19 million tonnes currently.

In 2017 it earmarked $1 billion for acquisitions and expansion but has had to proceed more cautiously this year as steel prices have fallen to their lowest in nearly a year and there are growing concerns the upcycle might reverse.

Duferco, controlled by state-owned Hebei Iron and Steel Group (Hesteel), China’s largest steelmaker, has activities in more than 120 countries and sales of about 20 million tonnes of steel and raw materials a year.

Elon Musk forms several ‘X Holdings’ companies to fund potential Twitter buyout

3 Mins Read

Thursday’s filing dispelled some doubts, though Musk still has work to do. He and his advisers will spend the coming days vetting potential investors for the equity portion of his offer, according to people familiar with the matter

KV Prasad Journo follow politics, process in Parliament and US Congress. Former Congressional APSA-Fulbright Fellow

Nothing new on the US-China relationship, says Paul Bartholomew of Platts

KV Prasad Jun 13, 2022, 06:35 AM IST (Published)

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Paul Bartholomew, senior managing editor at S&P Global Platts, spoke to CNBC-TV18 about the state of ongoing US-China trade negotiations, after reports emerged that the White House canceled a trade planning meeting with Beijing this week.

“There is nothing new on the US-China relationship, at the moment they are saying they are just talking, so no concrete statement as such and therefore one will just have to wait and watch,” Bartholomew said on Wednesday.

“However, Peoples Bank of China has said that they are not going to flood the market with stimulus”.

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Elon Musk forms several ‘X Holdings’ companies to fund potential Twitter buyout

3 Mins Read

Thursday’s filing dispelled some doubts, though Musk still has work to do. He and his advisers will spend the coming days vetting potential investors for the equity portion of his offer, according to people familiar with the matter

KV Prasad Journo follow politics, process in Parliament and US Congress. Former Congressional APSA-Fulbright Fellow

India likely to leave behind US in steel consumption this year: Steel Minister

KV Prasad Jun 13, 2022, 06:35 AM IST (Published)

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India is expected to edge past the US with regard to steel consumption this year, Steel Minister Chaudhary Birender Singh said on Tuesday.

Addressing the fourth edition of India Steel 2019, the minister said, “Growth trend in steel consumption in India will continue, due to strong manufacturing sector, diversified demand demographics, accelerated expenditure on infrastructure, anticipated increase in GDP and strong focus on ‘Make in India’.”

“We are likely to leave behind US in terms of steel consumption this year,” Singh said.

A budget of around Rs 6 lakh crore was allocated for infrastructure development in the current financial year, he noted.

“So, based on these enabling factors and with huge potential yet to be tapped, the per capita consumption can easily be increased from the current levels,” he added.

Steel Secretary Binoy Kumar said that the National Steel Policy 2017 along with the Policy for Preference to Domestically Manufactured Iron & Steel Products have resulted in savings of more than Rs 8,000 crore till date.

Underlining the importance of not showing any disadvantage to the sector, he added that the government was also reviewing the DMI&SP policy and trying to find convergence between DMI&SP policy and Public Procurement Order 2017 of DIPP.

“Under the ambit of the policy, 16 more steel products were brought under Quality Control Order, which now covers a total of 53 products. The endeavour is to bring more products under the Quality Control Order in an effort towards prohibiting production, import and distribution of substandard products,” he added.

Elon Musk forms several ‘X Holdings’ companies to fund potential Twitter buyout

3 Mins Read

Thursday’s filing dispelled some doubts, though Musk still has work to do. He and his advisers will spend the coming days vetting potential investors for the equity portion of his offer, according to people familiar with the matter

KV Prasad Journo follow politics, process in Parliament and US Congress. Former Congressional APSA-Fulbright Fellow