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Steel Minister puts onus on Odisha for Posco failure

Express News Service reported that union Steel Minister Chaudhary Birender Singh on Friday shifted the blame to the State Government for South Korean steel major Posco abandoning its proposed steel project near Paradip. Mr Singh told reporters that “Delay in land acquisition by the State Government was the major impediment for Posco project. It is the job of the State to provide land to project proponents which did not happen in case of Posco.”

Mr Singh, who chaired a meeting of the recently constituted National Steel Consumers’ Council of the Ministry of Steel, however, preferred to gloss over the Central Government’s failure to meet the promised captive mines to the Korean steel major.

The Union Steel Minister parried several questions on Posco, one of the largest FDI proposed ever in the country, and ArcelorMittal which had planned to set up a green field steel project in Keonjhar district.

He, however, claimed that foreign companies have now shown interest to invest in steel projects with new technology after the Government allowed 100 per cent foreign direct investment (FDI). Mr Singh said that “I can assure you that (overseas) companies which were earlier complaining now want to put up steel plants in the country with transfer of technology. The country needs new technology and the Steel Ministry is open for any transfer of technology.”

Source : Express News Service
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Wereldwijde staalproductie omhoog

Stijging van 2,0 procent in mei.

(ABM FN-Dow Jones) De mondiale staalproductie is in mei op jaarbasis gestegen. Dit bleek dinsdag uit cijfers van brancheorganisatie World Steel Association.

In totaal maakten de 67 staalproducerende landen in de afgelopen maand 143,3 miljoen ton staal, een stijging van 2,0 procent op jaarbasis.

In China, wereldwijd met afstand de grootste fabrikant van staal, steeg de productie afgelopen maand op jaarbasis met 1,8 procent tot 72,3 miljoen ton. Japan zag de productie afgelopen maand licht toenemen met 0,1 procent.

In Duitsland was sprake van een daling met 1,4 procent op jaarbasis tot 3,8 miljoen ton. In Italië daalde de productie met 4,1 procent, terwijl in Spanje 3,7 procent minder staal werd gemaakt. In Frankrijk was sprake van een sterke groei met 21,5 procent.

De Verenigde Staten produceerden in april 7,0 miljoen ton staal. Dit was 0,2 procent meer dan een jaar eerder.

De bezettingsgraad van staalproducerende landen steeg op jaarbasis met 0,5 procentpunt naar 71,8 procent vergeleken met dezelfde maand een jaar terug. Vergeleken met een maand eerder betekende dit een toename van 1,8 procentpunt.

Door: ABM Financial News.

info@abmfn.nl

Redactie: +31(0)20 26 28 999

Copyright ABM Financial News. All rights reserved

(END) Dow Jones Newswires
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Marshall Wace North America L.P. Buys Shares of 579,030 ArcelorMittal (MT)
Posted by Stuart Ham on Jun 19th, 2017

ArcelorMittal logoMarshall Wace North America L.P. acquired a new stake in shares of ArcelorMittal (NYSE:MT) during the first quarter, according to its most recent 13F filing with the Securities and Exchange Commission (SEC). The fund acquired 579,030 shares of the basic materials company’s stock, valued at approximately $4,632,000.

Other hedge funds have also added to or reduced their stakes in the company. Ladenburg Thalmann Financial Services Inc. increased its stake in shares of ArcelorMittal by 165.1% in the fourth quarter. Ladenburg Thalmann Financial Services Inc. now owns 81,495 shares of the basic materials company’s stock worth $596,000 after buying an additional 50,748 shares during the period. Two Sigma Investments LP increased its stake in shares of ArcelorMittal by 11,710.2% in the fourth quarter. Two Sigma Investments LP now owns 2,992,587 shares of the basic materials company’s stock worth $21,846,000 after buying an additional 2,967,248 shares during the period. GSA Capital Partners LLP increased its stake in shares of ArcelorMittal by 324.5% in the fourth quarter. GSA Capital Partners LLP now owns 65,766 shares of the basic materials company’s stock worth $480,000 after buying an additional 50,273 shares during the period. Scotia Capital Inc. purchased a new stake in shares of ArcelorMittal during the fourth quarter worth about $137,000. Finally, Marshall Wace LLP purchased a new stake in shares of ArcelorMittal during the fourth quarter worth about $6,575,000. 9.60% of the stock is currently owned by institutional investors and hedge funds.

Institutional Ownership by Quarter for ArcelorMittal (NYSE:MT)

Shares of ArcelorMittal (MT) traded up 1.94% during midday trading on Monday, hitting $20.51. 7,640,917 shares of the stock were exchanged. ArcelorMittal has a 12-month low of $12.54 and a 12-month high of $28.11. The firm has a 50-day moving average price of $22.15 and a 200 day moving average price of $23.93. The firm has a market cap of $20.91 billion, a PE ratio of 6.80 and a beta of 2.10.
ArcelorMittal (NYSE:MT) last issued its earnings results on Friday, May 12th.

The basic materials company reported $0.99 EPS for the quarter, topping the consensus estimate of $0.81 by $0.18. The company had revenue of $16.09 billion for the quarter, compared to analyst estimates of $16.81 billion. ArcelorMittal had a net margin of 5.38% and a return on equity of 10.08%. The business’s revenue was up 20.1% on a year-over-year basis. During the same period in the previous year, the firm earned ($0.69) EPS. Analysts predict that ArcelorMittal will post $2.93 earnings per share for the current fiscal year.

A number of analysts recently issued reports on the stock. Zacks Investment Research downgraded shares of ArcelorMittal from a “buy” rating to a “hold” rating in a report on Tuesday, March 21st. Cowen and Company reissued a “buy” rating and set a $11.00 price target on shares of ArcelorMittal in a report on Friday, May 19th. ValuEngine raised shares of ArcelorMittal from a “buy” rating to a “strong-buy” rating in a report on Friday, June 2nd. Credit Suisse Group set a $45.00 price target on shares of ArcelorMittal and gave the stock a “buy” rating in a report on Saturday, March 25th. Finally, J P Morgan Chase & Co raised shares of ArcelorMittal from a “neutral” rating to an “overweight” rating and increased their price target for the stock from $25.20 to $25.32 in a report on Friday, March 31st. One research analyst has rated the stock with a sell rating, one has given a hold rating, ten have issued a buy rating and two have given a strong buy rating to the stock. The company currently has a consensus rating of “Buy” and an average target price of $26.39.

zolmax.com/investing/marshall-wace-no...
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EC confirms definitive AD duties on Belarus rebar

The European Commission (EC) has confirmed definitive anti-dumping duties for imports of rebar from Belarus. These are down slightly from the provisional measures imposed last December, Kallanish learns from an official statement.

The definitive measures will be in place for a period of five years; importers of Belarussian rebar will have to pay a 10.6% duty, down from the 12.5% provisional measures levied in December.

The Belarussian authorities and exporters requested the EC provide a free trade quota of 200,000 tonnes/year of rebar, and for duties to be in place for a period of only two years. Nevertheless, the EC in its findings stated that such requests could not be accepted. “Should the circumstances change, the Belarussian […exporter] has the possibility to request a review of the measures pursuant to Article 11(3) of the basic Regulation,” the EC stated.

Source : Kallanish.com
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Chinese newly-added EAF capacity faces difficult initiation

Some Chinese private steelmakers have ordered new electric arc furnace equipment after cutting their backward steelmaking equipment or induction furnaces on government orders. Data from EAF equipment-supply companies show there is around 30-40 million tonnes/year of new EAF capacity that has been booked by steel companies.

However how much steel output these new EAFs will produce remains uncertain due to conflicting government restrictions and the market situation in the second half of 2017, Kallanish notes.

In early June Baowu Group’s steel e-commerce platform Ouyeel, Guangda Securities and steel analysts held a workshop to discuss recent additions to EAF capacity. Representatives from steel mills, securities, scrap and steel firms and analysts were involved. Delegates to the event gave estimates of actual crude stel production from EAFs of only around 5-15 million tonnes in H2 2017 because of government restrictions.

The head of one scrap analysis website said its ground investigations showed that around 30% of induction furnace owners are considering or planning to add EAF capacity. However even those which have completed EAF equipment installation still do not dare to begin production due to the aggressive posture of the government against new capacity.

A steel plant manager meanwhile said that more and more mills are increasing the use of scrap in their EAFs. Previously lots of steel mills were using their EAFs as spare converters by using up to 60-80% hot metal. Based on this, he aded that, “... the hike in scrap exports might not last for long.”

Meanwhile there are certain issues lying ahead for the newly-added EAF owner  which are limiting them releasing steelmaking capacity. As only some induction furnace steelmakers had attained steel production qualifications, the Economy & Information Commission has said that eliminated induction furnace capacity can not be used for capacity replacement quotas.

In addition to the government restrictions, other risk factors remain. These include the uncertainty of steel prices in H2, the tougher financing environment for steel companies, a shortage in graphite electrode supply and the need to train new EAF operators.

Source: Kallanish.com
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World crude steel production for the 67 countries reporting to the World Steel Association (worldsteel) was 143.3 million tonnes (Mt) in May 2017, a 2.0% increase compared to May 2016.

China’s crude steel production for May 2017 was 72.3 Mt, an increase of 1.8% compared to May 2016. Japan produced 9.0 Mt of crude steel in May 2017, an increase of 0.1% compared to May 2016.

In the EU, Germany produced 3.8 Mt of crude steel in May 2017, a decrease of -1.4% compared to May 2016. Italy produced 2.1 Mt of crude steel, down by -4.1% on May 2016. France produced 1.4 Mt of crude steel, up by 21.5% compared to May 2016. Spain produced 1.2 Mt of crude steel, down by -3.7% on May 2016.
Turkey’s crude steel production for May 2017 was 3.3 Mt, up by 9.7% on May 2016.
The US produced 7.0 Mt of crude steel in May 2017, an increase of 0.2% compared to May 2016.
Brazil’s crude steel production for May 2017 was 2.9 Mt, up by 13.2% on May 2016.
The crude steel capacity utilisation ratio of the 67 countries in May 2017 was 71.8%. This is 0.5 percentage points higher than May 2016. Compared to April 2017, it is 1.8 percentage points lower.

www.worldsteel.org/media-centre/press...
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Strongest world growth expected since 2010 - Fitch Rating

Fitch Ratings in its latest Global Economic Outlook said that the recovery in global growth is strengthening and is expected to pick up to 2.9% this year and peak at 3.1% in 2018, the highest rate since 2010. Mr Brian Coulton, Fitch's Chief Economist, said “Faster growth this year reflects a synchronised improvement across both advanced and emerging market economies.

Source : Strategic Research Institute
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Germany writes to US to criticize plans to act against steel imports

Reuters reported that German Economy Minister Ms Brigitte Zypries has written a letter to US Commerce Secretary Mr Wilbur Ross in which she criticized Washington's plans to take action against steel imports. Frankfurter Allgemeine Zeitung reported that Ms Zypries also addressed her letter to EU Trade Commissioner Ms Cecilia Malmstrom and said she was concerned that initial indications suggested the report could find that steel imports including from the EU threaten U.S. national security.

She added that "We've also heard that duties or quotas are due to be imposed to reduce imports."

Ms Zypries wrote that from Germany's perspective there are no indications that European or German steel imports could threaten or adversely affect US national security.

She also warned that other countries could understand the US's course of action as an "invitation", adding that "That would open the door to protectionist measures."

Source : Reuters
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Analysis of Chinese steel exports by Mr Andy Home

Mr Andy Home, a noted columnist with Reuters, reported that China's exports of steel product have fallen sharply over the first few months of this year. The January to May total was 34.2 million tonnes, down 26% on last year's equivalent figure and the lowest read since 2014. The YoY drop in tonnage terms was 12.1 million. The only recent historical comparison for such a dramatic and sustained drop in steel exports was 2009, when demand in the rest of the world was imploding in the aftermath of the global financial crisis. So what's happening this time around? Is this a sign that China's much-hyped capacity closure program is finally starting to bear fruit?

Beijing does targets well and it's already way ahead of its goal for steel capacity closures this year. A total 42.4 million tonnes were shut in the first five months of this year, representing 85% of the 50 million tonne target, according to the National Development and Reform Commission. That follows 65 million tonnes of closures last year and brings the running count to over 100 million tonnes, now well within the 100 to 150 million range originally promised by China over a five-year period.

The only problem is that these shutdowns have had no discernible impact on steel production. China produced 72.78 million tonnes in April, an all time record. Production eased very slightly to 72.26 million tonnes in May but that was still the second-highest production month after April.

This counterintuitive outcome is down to what exactly has been closed. The initial round of capacity elimination appears to have included a large amount of non-productive capacity, an easy win for producers and local governments looking to fall into line with the new national policy. A second focus has been on induction furnace operators. Such producers, using scrap rather than iron ore as their input and frequently accused of manufacturing sub-standard product, are largely unapproved and therefore "illegal" in the eyes of Beijing.

Source : Reuters
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ThyssenKrupp builds a future beyond steel business

Bloomberg reported that ThyssenKrupp AG that the most profitable operation at Germany’s biggest steel company is producing elevators not metal. The industrial giant, with roots dating to 1811, has poured research into its elevator unit to turn what was a sideline into a primary business. In the past six years, Thyssenkrupp has earned more from elevators than steel as the market for metals weakened. The company’s investments are pushing the elevator industry into new areas, with innovations like the first model to move sideways as well as up & down and moving walkways that levitate on magnets. Other manufacturers are taking note.

Mr Andreas Schierenbeck the elevator unit’s chief executive officer, said in an interview that “We’ve managed to stimulate competition, in some cases to the point where our concepts are taken over or adapted. That’s good. If you’re being copied, you’re doing something right.”

In one example, ThyssenKrupp’s twin system, where two cars travel independently in the same shaft, led others to push alternatives such as double-decker elevators. Such rivalry can also help increase acceptance of the new technology by architects and builders, wary of installing costly machinery that lacks a proven track record, as well as developing a necessary market for equipment and maintenance suppliers.

Chinese Rivals

While the elevator business has been growing for a decade, and earnings are rising, steel revenue has been dropping as competition from China slashed prices and eroded profit. While ThyssenKrupp has recovered from three years of losses that ended in 2014, the materials division including steel made up 28 percent of total earnings last fiscal year, down from 40 percent just before CEO Heinrich Hiesinger took the helm in January 2011.

ThyssenKrupp isn’t alone in seeking creative answers to market woes. Voestalpine AG, Austria’s once state-owned steelmaker, is focused on making components for the auto and aerospace industries, and even branching out into systems for monitoring railroads.

Source : Bloomberg
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Steel gets edge in new industrial production indices - Mr Sushim Banerjee

Mr Sushim Banerjee DG of Institute of Steel Growth and Development in his personal capacity wrote for Financial Express that the revision of the base year from 2004-05 to 2011-12 which was long overdue has recently been completed and new sets have been released by CSO. Accordingly the WPI, GVA, GDP and IIP data have all been recaptured to include the new sets of industries and service areas that have emerged in the recent past and exclude the abandoned trades and industries that have much diminished their importance. In the earlier years the input-output model showing the interdependence of various sectors in Indian economy and the resultant impact of one unit variation in demand or supply of one sector on the other dependent sectors were invaluable inputs for taking appropriate policy decisions.

One of the major constraining factors was the choice of old base year that did not reflect the true interdependence amongst the various sectors and also non-availability of sectoral linkages on a regular basis as the time progresses. In the absence of appropriate data linkages, it was not possible to analyse which sectoral growth or decline impacts the various connected sectors and by how much. It is also true that over the years a set of new linkages have emerged between each sector of the economy due to obsoleteness and similar other factor operating in the market dynamics rendering it very difficult to measure the connectivity and include these in a model. Niti Aayog can still work out a latest general equilibrium model of Indian economy which some other analytical and research bodies have already developed. This is an area where maximum disconnect is observed between what this type of modeling the economy actually prescribes and what the industry and service sectors deem it fit to be appropriate. This loss of apparent connectivity has sometimes enhanced the extent of irrelevance of industrial production data with what is happening actually in the field.

Another difficulty of using the connectivity factor is felt while forecasting the requirements of inputs with output variation. For instance, it is possible to estimate the volume of coking coal required by ISPs when the capacities would be around 300 million tonne in the next 13 years’ time. Considering the various technologies adopted by the ISPs to bring down coal consumption (coal dust injection, pulverised coal, non-coking coal to gas) and the possibility of low cost energy by non conventional energy technologies including solar, there may be substantial reduction in coking coal requirement for steel production and this would go a long way to lowering the production cost of steel and improve energy efficiency and bring down CO2 emission. Thus the inter-sectoral dependability factor would be regularly changing depending on the latest technology and one of the best methods to capture and monitor these changes would be revising the base year periodically. This also holds good for estimating the long term demand for iron ore considering the increasing use of pellets in the BFs and more use of beneficiation facilities.

Industrial production on the revised base has moved up by 3.1% in the month of April’17 as compared to 5.0% growth in Fy17 and 1.9% in March’17. It is important to see that steel is now categorized on the basis of its use as intermediate sector (semi finished steel, pipes and tubes) and infrastructure/construction sector (HR coils, CR coils, GP/GC, long and flat products of carbon, alloy and stainless steel, rails). The steel sector including pig iron, sponge iron, ferro alloys and steel framework for towers as per the new series has a combined weight of 11.6% in industrial production which is much more than the weightage in the old series. This single factor therefore indicates the growing importance of steel industry in the industrial production of the country over the last 7 years. During April’17 while intermediate sector has risen by 4.6% which exceeds 3% growth it achieved in Fy17, the infrastructure/construction sector has moved up by 5.8% against a meager 3.8% growth achieved in last year. These two sectors along with capital goods and consumer durable sectors with a combined weightage of 50.62% in manufacturing has contributed it to grow by a positive 2.6% in the first month of the current fiscal which is however lower than 5.5% growth in last April.

Thus in a way, the new series is a much better representative of the market realities. The predominant role of steel industry in the manufacturing and industrial growth of the country has now been firmly established.

Source : Financial Express
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India Jan-Mar quarter GDP growth slowest in 2 years - Fitch Ratings

Fitch Ratings in its latest Global Economic Outlook said that the 6.1% YoY growth of Indian gross domestic product in the first quarter of 2017 was the slowest growth rate since the fourth quarter of 2014. Fitch said "Indian GDP growth slowed significantly to 6.1% YoY in 1Q17 from 7.0 per cent in 4Q16. This was the slowest pace since 4Q14."

Fitch said the domestic demand accounted for the bulk of the slowdown. It said "It appears that the cash squeeze of November 2016, whereby the government pulled 86% of cash in circulation out of the economy virtually overnight, finally did have a material impact on spending.”

According to Fitch, the lagged effect of demonetisation on the economy is quite puzzling - as the effects would be expected to be quite rapidly felt but partly reflects the challenges of measuring spending in an economy with a large informal sector.

It said "Consumption growth fell substantially to 7.3% YoY, although this was from an admittedly high rate of 11.3% in 4Q16. More worryingly, investment dipped into negative territory (2.1% YoY). This partly reflected poor construction activity, which fell by 3.7% YoY, an unprecedentedly low level in recent years.”

This may have been affected by the demonetisation shock, but investment has been persistently weak in recent years, it said, adding that investment as a share of GDP has been trending down for several years and ongoing steep declines could spell risks for medium-to-long-term term growth potential.

Fitch added that the goods and services tax, expected to be applicable from July of this year, will facilitate trade within India and reduce transaction costs. Public spending on infrastructure is also set to rise, boosting investment. It said “This should help drive a pick-up in GDP growth, which we forecast at 7.4 -7.6% in the next two fiscal years.”

Source : Strategic Research Institute
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Indian Chamber of Commerce seeks changes to stressed assets scheme of RBI

Economic Times reported that Kolkata based Indian Chamber of Commerce, which represents some of the debt-laden steel firms based in the eastern region, has urged the Reserve Bank of India governor to consider amending the Scheme for Sustainable Structuring of Stressed Assets (S4A) to cover cases where sustainable debt is below 50% and to set up sector specific oversight committees for banks to restructure loans for companies not under S4A.

In a letter to RBI, ICC Director General Mr Rajiv Singh also suggested that a strict time frame under the Insolvency and Bankruptcy Code (IBC) should not result in liquidation of good assets.

The letter said the S4A would have been effective had it been introduced in 2010. However, with a ballooning of debt by over three times between 2011 and 2017, interest costs of loan facilities have been much higher than EBIDTA margins.

Mr Singh wrote “Lenders have been deducting interest and installment from repayment from working capital to keep the account standard, resulting in depletion of working capital. Thus, the debt is now at a level much beyond the hard cost of the project. Hence, the threshold of 50% needs to be reduced or removed.”

The chamber suggested that the steel sector's specific oversight committee could facilitate decision making since it felt debt restructuring is not happening due to fear of investigation authorities.

Source : Economic Times
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Iranian firm mulls buying iron ore mine in Australia

Financial Tribune reported that Golgohar Mining and Industrial Company is considering purchasing an iron ore mine in Australia. The report quoted Mr Nasser Taqizadeh manager as saying that the company will either make the purchase on its own or through a consortium made up of Iranian steelmakers. He said that “Australia is our main choice, as we seek to buy a mine in a country with high investment security.”

He added that establishing a consortium and using the Australian ore will definitely be an efficient and economic choice, as the commodity will be transported to Iran using large carriers capable of carrying 100,000-150,000 tons of ore. That is the maximum carrier size Iranian ports can accommodate, according to the official.

The company is currently conducting the project’s feasibility studies and holding talks with steelmakers.

Golgohar Mining and Industrial Company, located 50 km from Sirjan in the southwest Kerman Province, operates mines containing six ore bodies spread over an area of 40 square kilometers. The total deposits of iron ore in the region are estimated to be over 1.135 billion tonnes.

The major ore body has a deposit of more than 650 million tonnes, according to the company's website.

The mines are connected to the Trans-Iranian Railroad through the Tehran-Bandar Abbas line.

Following reports in the local media that Austria was extending a credit line to help build a steel plant in Golgohar, the Austrian government has denied any such move.

A spokeswoman from the Austrian Finance Ministry told Metal Bulletin said that "Reports in the Iranian press have no basis; the topic was not addressed by our side at all. There was, therefore, no pledge or signing.” But she declined a request to confirm reports that the credit line had been extended to Iran at all.

Mr Hans Jorg Schelling, Austria’s finance minister, led a delegation in a visit to Iran earlier this month aimed at strengthening ties between the two countries' banks, but there were conflicting reports on what exactly was agreed between the parties.

According to a report by IRNA on Sunday, Austria’s Oberbank extended a EUR 1 billion (USD 1.12 billion) credit line to Iran to "provide finance and cooperation development between the two countries".

Source : Financial Tribune
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FD.nl

ThyssenKrupp streeft naar revolutie in hoogbouw met lift zonder kabels

Duits concern probeert 'wilde dingen' bij streven minder afhankelijk te worden van staalproductie.

Steeds meer omzet uit liftendivisie

De resultaten van het liftenonderdeel van ThyssenKrupp zijn al vijf jaar stijgende. In het boekjaar 2015/2016 werd er met liften een bedrijfsresultaat behaald van €860 mln. In de staalproductie bleef het resultaat in dat boekjaar steken op €315 mln. ThyssenKrupp denkt in de liften te kunnen groeien naar een bedrijfsresultaat van €1 mrd.

Wat omzet betreft verschillen de twee bedrijfsonderdelen nauwelijks nog van elkaar. De Europese staalbedrijven van het Duitse concern boekten in het verslagjaar 2015/2016 een omzet van €7,6 mrd, terwijl de liftactiviteiten uitkwamen op een omzet van €7,5 mrd.

€860 mln

In afgelopen boekjaar boekte liftenonderdeel van ThyssenKrupp een bedrijfsresultaat van €860 mln

Sven Diermeyer, een analist bij Independent Research, verwacht een 'fundamentele verandering' bij ThyssenKrupp. Dat heeft vooral te maken met de grillige staalmarkt, die in de afgelopen jaren sterk onder druk stond doordat China goedkoop staal op de markt bracht. Hoewel de vooruitzichten wat rooskleuriger lijken en de staalactiviteiten weer winstgevend zijn, snijdt ThyssenKrupp wel voor €500 mln in de kosten bij de staaltak.

Verkennende gesprekken met Tata Steel

'Uiteindelijk zal ThyssenKrupp een onderneming worden die industriële goederen produceert, met een belang in een staal joint-venture', zegt Diermeyer tegen Bloomberg. Hij verwijst daarmee naar de verkennende gesprekken die het Duitse bedrijf voert met Tata Steel over de vorming van een gezamenlijke onderneming voor hun Europese staalbedrijven. Dit gaat ook Nederland aan, omdat Hoogovens onderdeel is van Tata.

De magneettechnologie, die over twee jaar in de praktijk kan worden toegepast, moet bijdragen aan de groei van de liftendivisie die ThyssenKrupp nastreeft. Schierenbeck heeft hoge verwachtingen: hij rekent op een revolutie in het ontwerp van hoge gebouwen. Om daarvoor te zorgen wil ThyssenKrupp samenwerken met concurrenten - het Amerikaanse Otis, het Finse Kone en Schindler uit Zwitserland zijn de belangrijkste. Schierenbeck: 'We praten met onze concurrenten over licenties. Alleen kunnen we deze markt niet tot ontwikkeling brengen.'
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Beursblik: deconsolidatie staalkabelfabriek kost Bekaert minder winst dan verwacht

Waardering conform verwachting KBC.

(ABM FN) De opbrengst en winstgevendheid van de Braziliaanse staalkabelfabriek van Bekaert zit aan de onderkant van de verwachtingen van KBC Securities. Dit stelde het analistenhuis donderdag nadat Bekaert financiële details gaf bij de verkoop van een meerderheidsbelang aan ArcelorMittal.

Bekaert en ArcelorMittal brachten het voormalige volledige dochterbedrijf van Bekaert in Sumaré onder in hun Braziliaanse samenwerkingsverband BMB. In de transactie met ArcelorMittal, die al in april werd aangekondigd, behoudt Bekaert een belang van 44,5 procent.

De fabriek in Sumaré realiseerde in de eerste helft van 2017 een omzet van circa 40 miljoen euro en een nettowinst van 5,5 miljoen euro, wat 4 procent is van de aangepaste nettowinst van Bekaert in 2016.

De EBIT-marge komt naar schatting van analist David Vagman uit iets boven de 10 procent, waar hij zelf was uitgegaan van een marge rond vijftien procent. Die tegenvallende winstgevendheid betekent dat Bekaert met zijn verwachting van een vergelijkbaar terugkerend EBIT- bedrijfsresultaat in 2017 nog voorzichtiger was dan KBC al dacht, omdat deze behoudende verwachting deels gerechtvaardigd werd door de deconsolidatie van Sumaré.

Anderzijds lag de bedongen prijs iets boven de waardering van Bekaert als geheel, afgaand op de koerswinstverhoudingen, zoals de analist al had voorzien.

KBC heeft een Accumuleren advies op Bekaert met een koersdoel van 50,00 euro.

Het aandeel noteerde donderdag 1,2 procent lager op 44,10 euro op een rode beurs.

Door: ABM Financial News.

pers@abmfn.be

Redactie: +32(0)78 486 481

Copyright ABM Financial News. All rights reserved

(END) Dow Jones Newswires
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EU will have to respond to Trump steel threat - Ms Cecilia Malmström

Politico reported that EU’s trade Commissioner Ms Cecilia Malmström at a POLITICO Playbook Breakfast event in Brussels said that European Union will need to respond if US President Donald Trump slaps tariffs on steel from the EU, China and other countries. She told “We should be very, very clear that this is hitting the European Union very, very hard.”

Ms Malmström pointed out that European countries are close security partners of the US. She said “We are allies, we are friends. Almost all EU countries are members of Nato.”

She added that the reason for US concerns on steel imports were market distortions and overcapacity in China. She said “We share these concerns.”

Ms Malmström said Brussels would first need to analyze the detail of the US decision once it is released before deciding what action to take.

Yet, she reiterated “We will have to respond in different means.”

She was responding to a presidential memorandum that Trump signed in April, ordering the U.S. Department of Commerce to launch a Section 232 investigation on whether to curb steel imports on “national security” grounds. A decision on whether to impose such tariffs is expected as early as this week.

US tariffs are maybe not targeted vis-à-vis Europe, but it will hit us very hard.

Trump’s steel tariffs will have less affect on China but instead impact heavily on US allies, because Washington has already banned many Chinese imports due to price dumping.

Source : Politico EU
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Mitigating brittle phases in lightweight steel production - Dr Alireza Rahnama

High strength, lightweight steels can finally be processed on an industrial scale, thanks to a breakthrough in controlling undesired brittle stages from production, by WMG, University of Warwick. Dr Alireza Rahnama has developed a new processing route which allows low density steel-based alloys to be produced with maximum strength, whilst remaining durable and flexible something which has been largely impossible until now.

Two lightweight steels were tested: Fe-15Mn-10Al-0.8C-5Ni and Fe-15Mn-10Al-0.8C – for their potential to achieve maximum strength and ductility.

During production, two brittle phases can occur in these steels: kappa-carbide (k-carbide) and B2 intermetallic which make the steels hard but limits their ductility, so they are difficult to roll.

Through simulation and then experimentation, the WMG researchers found that at certain high annealing temperatures, these brittle phases can become much more controllable, allowing the steels to retain their ductility.

Between 900°C to 1200°C, the k-carbide phase can be removed from production, and the B2 intermetallic brittle phase can become manageable – forming in a disk-like, nano-sized morphology, as opposed to a coarser product which forms at lower temperatures.

Current processes for strengthening lightweight steels make them less flexible and therefore less marketable but thanks to Dr Rahnama's research, this is set to be a problem of the past.

The breakthrough could lead to a revolution in safer, greener, more fuel-efficient cars.

Vehicles made of stronger and lighter materials are safer for drivers, emit less CO2 and consume less fuel and more malleable steels will allow manufacturers to form car parts into desirable, streamlined shapes.

Dr Rahnama comments that "Alloys with higher strength and ductility could alleviate some of these concerns by reducing weight and improving energy efficiency. Lightweight steels are one of the candidates to address these concerns. Most metallurgical mechanisms for increasing strength lead to ductility loss, an effect referred to as the strength-ductility trade-off. This paper studies the kinetics and thermodynamics of microstructural evolution of lightweight steels through simulations and experiments and proposes a mechanism to achieve higher strength and larger ductility; a method that can be readily adopted by industry."

Source : Phys.Org
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Germany may use trade protection to prevent US steel import restrictions - Ms Merkel

Sputnik quoted German Chancellor Angela Merkel as saying that Germany may use political instruments to protect German steelmakers from possible protectionist measures by the United States.

Ms Merkel in her speech on at the Day of German Industry forum in Berlin said that "We know, of course, that we should follow the rules which exist, for example, in the issues regarding political instruments of trade protection that we don't want to use. But when I think about steel, it is important for us to make progress in the activities of the forum for discussing overproduction and fair competition in the steel industry, which was established within the framework of G20 last year. We will talk about it in Hamburg [at the G20 summit], but it is interrelated, it is not just trade; it [trade] should follow rules and be fair, and I want to promise this to German industry.”

On Monday, German Minister for Economics and Energy Brigitte Zypries sent a letter to US Commerce Secretary Wilbur Ross criticizing Washington's plans regarding foreign steel imports. Zypries stressed that measures such as duties or quotas, which might follow the probe, are protectionist and contradict trade and customs agreements. She warned that in case of adoption of such measures Germany may file a complaint to the World Trade Organization.

Source : Sputnik
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Egyptian El-Garhy Steel Group to open billet caster & rolling mills plants at 2018 end

Amwal Al Ghad reported that Egyptian steel manufacturer El-Garhy Steel Group says it plans to inaugurate two plants for steel billets and rolling mills production in Suez at the end of 2018. Located in Ataqa Industrial Zone in Suez, the two plants are with investment costs worth EGP 3.6 billion (USD198 million).

Chairman Gamal El-Garhy told Amwal Al Ghad that “As for the first plant, El-Group seeks to produce around 1.2 million of steel billets annually. The second plant will have a production capacity of around 500,000 tonnes of steel rolling mills annually.”

Source : Amwal Al Ghad
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