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Egypt keeps dumping duties on imports of steel for 2 more months

Daily News Egypt reported that Egypt’s Ministry of Trade and Industry has decided to extend the period of application of temporary anti-dumping duties on imports of steel (skewers, rolls, and rods) exported from or originating in China, Turkey, and Ukraine for two months.

According to a statement issued by the Ministry, the decision stipulates that the duty rate should be 17% of the cost, insurance, and freight (CIF) value on Chinese imports, 10% to 19% of the CIF value on Turkish imports, and 15% to 27% of the value of the CIF on Ukrainian imports.

It is noteworthy that decision No. 874 on the imposition of temporary anti-dumping duties on imports of reinforcing steel (skewers, rolls, and rods) exported from or originating in China, Turkey, and Ukraine in June includes the imposition of such duties for a period of four months ending on 6 October 2017.

According to the head of the Trade Agreement Sector, Ibrahim El Segeeny, the Advisory Committee recommended extending the period for two months from the expiration date of Resolution 874 to 6 December, bringing the total period of application to six months after receiving a request from a number of exporters representing a large percentage of trade.

The product under investigation shall extend the application period.

Source : Daily News Egypt
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Latin American finished steel imports grow 15pct during January-July 2017 - Alacero

Latin American steel association Alacero said that Latin American figures for the first seven months of 2017 showed an increase of 6% in consumption, meanwhile crude steel production and finished steel production grew 8% and 3% respectively compared to the same period of last year. However, imports increased by 15%, affecting regional consumption,

Source : Strategic Research Institute
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Visa Steel soars on shareholders nod to raise investment limit for FIIs

Visa Steel share price rallied nearly 19% intraday on September 25th 2017 on receiving approval from shareholders for increase in investment limit for FIIs. The mineral and metals company said in its filing that "Shareholders approved the proposal to increase the aggregate limit for investment by the foreign institutional investors and non-resident Indians in equity share capital of the company.”

Promoter and promoter group's shareholding stood at 61.98% and the rest is held by public as of June 2017.

Foreign portfolio investors including Cresta Fund, LTS Investment Fund and APMS Investment Fund hold 23.1 percent stake in the company while non-resident Indian has 0.21% stake.

Source : Money Control
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Pakistan’s auto part makers call for withdrawal of duty on steel imports

The News reported that Pakistan Association of Automotive Parts and Accessories Manufacturers has appealed to the Prime Minister of Pakistan for the withdrawal of regulatory duty on import of industrial steel materials by the auto parts industry. Mr Mashood Ali Khan, chairman of PAAPAM said “The material we import is not manufactured locally in Pakistan.”

He said “This is the third consecutive year of regulatory duty regime. We have been to every ministry in the government and have been fighting for the removal for the past 2.5 years. By increasing tariffs on import of raw materials, domestic industry was made seriously uncompetitive.”

He said. “For example, 30-35% additional tariff on steel may have helped some inefficient units, but it considerably increased the costs for the value-added sectors producing fine quality auto parts and engineering products.”

The chairman said these interventions were made for the protection of the local steel industry which mainly produces construction steel.

Regulatory duty at the rates of 5-15% on steel imports was first imposed in January 2015 applying to auto parts manufacturers as well and was supposed to be a temporary measure. Next year, regulatory duty was increased from 15% to 35%.

Source : The News
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Emirates Steel sets new record in DRI production

During the last twelve months, Emirates Steel DRP #2 has set new production and availability records of more than 2,000,000 tons of high quality DRI, operating for more than 8,400 hours (equal to 105% net availability) and for 315 days continuously without any stoppage, confirming the reliability of the Energiron technology.
Source : Strategic Research Institute
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UK Government urged to help British steel industry

Crumbia reported that UK steel industry leaders are calling on the Government to agree global measures to reverse the rapid expansion of Chinese steelmaking capacity, the chief cause of the crisis which has seen the loss of one in six jobs in the UK sector.

A meeting in Paris this week of governments to discuss the steel industry should decide to take action collectively, rather than a divided and uncoordinated approach, it was urged.

Delivering a long term, global solution to the overcapacity of steel is vital to the long term health of the UK steel sector, employers and unions said.

Mr Gareth Stace director of trade group UK Steel said that "As the UK steel sector comes out of crisis, we need to do all we can to ensure we don't return to those dark days. Dedicated, hardworking and highly skilled steel workers deserve more than this. We have a sector here in the UK with a strong, bright and positive vision for the future."

British Steel employs 220 people in Derwent Howe, Workington through its subsidiary TSP Engineering, previously the long products division of Tata Steel.

Source : Cumbria com
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STEEL IMPORTS UP 21% YTD OVER SAME PERIOD IN 2016 Finished Import Market Share YTD at 28%

Washington, D.C. – Based on preliminary Census Bureau data, the American Iron and Steel Institute (AISI) reported today that the U.S. imported a total of 3,349,000 net tons (NT) of steel in August 2017, including 2,422,000 net tons (NT) of finished steel (down 4.8% and 16.8%, respectively, vs. July final data). Year-to-date (YTD) through eight months of 2017, total and finished steel imports are 26,561,000 and 20,401,000 net tons (NT), up 20.6% and 15.5%, respectively, vs. the same period in 2016. Annualized total and finished steel imports in 2017 would be 39.8 and 30.6 million NT, up 20.7% and 16.2%, respectively, vs. 2016. Finished steel import market share was an estimated 26% in August and is estimated at 28% YTD.

En veel meer, zie PDF

steel.org/~/media/Files/AISI/Press%20...
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Indian government yet to work out iron ore pricing mechanism
Published on Wed, 27 Sep 2017

Business Standard reported that union government has dropped the proposal to cap iron ore prices but is yet to derive a pricing mechanism for the raw material. Some of the mining companies are pitching for a benchmark price for the raw material on the lines of oil and coal. The pricing of iron ore has to be based on global parity and local demand and supply situation. The pricing of the end-product is market driven, according to a mining company official who does not wish to be quoted.

The ministry of mines and the ministry of steel are at loggerheads over the issue, with the former asking for a benchmarked price for the essential raw material and the latter vehemently opposing it fearing a spike in the price of the end product steel.

The side favoring benchmarked iron ore prices reasons that internationally, the raw material in question and the price of minerals, in general, are benchmarked to a particular geography or country's price.

Citing an example, an industry expert said that as in the case of bullion (gold) or equity, where the prices are derived by a certain index, the same should be replicated for minerals. Benchmarking the price also means that the states get their due share of taxes, he added.

Currently, the Indian Bureau of Mines collates the price of iron ore from all the states and decides the valuation of Royalty every month.

Govt yet to work out iron ore pricing mechanism; firms want benchmarking

Experts feel that the global prices can also be added to the basket and a particular price can be arrived at.

However, Mr R K Sharma secretary-general of the Federation of Indian Mineral Industries has contrary views on the subject of benchmarking iron ore prices as he feels that the methods, either auctions or buyer/seller agreements, under the current framework are better. He even fears that benchmarking of prices might lead to higher cost of the raw material and, subsequently, less off-take from the mines at a time when the country is sitting on surplus mineral.

According to a report from the Indian Bureau of Mines, in 2016-17, the country had excess iron ore to the tune of 149 million tonnes as against total output of 191 million tonnes.

Source : Business Standard
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Alderon Iron Reaches Settlement with Newfoundland and Labrador Hydro

Alderon Iron Ore Corp provide an update on recent corporate developments. The Kami Mine Limited Partnership, Alderon's affiliate and the owner of the Kami Project, has reached a settlement with Newfoundland and Labrador Hydro with respect to the USD 21 million letter of credit that it posted for the construction of a new transmission line to the Labrador West area. As a result of the settlement, Kami LP will be returned USD 11.5 million (plus accrued interest) from the release of the letter of credit. In addition, if construction of the transmission line resumes within the next five years, Kami LP will receive an additional USD 750,000 payment as a re-start credit.

Alderon also announces that it is working with BBA, Inc to update the re-scoped preliminary economic assessment that was completed in February of this year. The Wabush Scully Mine was recently acquired by a third party who has stated its intention to re-open the mine. As a result, Alderon and BBA will be updating the PEA to remove the components related to the Wabush Scully Mine. The use of the depleted pit at the Wabush Scully Mine was just one of the many cost savings that were identified as part of the re-scope of the Kami Project and the updated PEA will still encompass the other cost savings as outlined in the previous PEA.

The Kami Project remains an attractive development prospect due to its high-grade iron ore concentrate with low impurities. Stricter environmental regulation has driven demand for the premium product that will be produced from the Kami Project, as it allows end users to meet more stringent environmental standards. In particular, China's bid to reduce emissions is seeing an increase in domestic steel mills switching to high-grade iron ore products with fewer impurities. For the type of iron ore concentrate that the Kami Project will produce (65% Fe), there is already a spread to the Platts iron ore index price, currently pegged at US $21 per tonne above the benchmark product. This spread has widened over the last 18 months and prices for high-grade ore are expected to continue to increase as environmental regulation becomes more stringent.

Source : Strategic Research Institute
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Anglo’s plan to further expand vast iron ore mine in Brazil hits roadblock

Mining com reported that Anglo American’s plans to further expand its massive Minas Rio in Brazil hit a roadblock this week after the public prosecutor for the state of Minas Gerais, where the iron ore mine is located, told the company to reschedule two public meetings originally tabled for September 20 and 21. The order, the company said in a statement (in Portuguese), stemmed from the its failure to inform the municipality of Conceição do Mato Dentro of the upcoming meeting, even though the town is one of the communities to be affected by a potential new expansion of the mine.

"Anglo is attempting to receive a licence for a third and final expansion of Minas Rio, which will allow the mine to ramp up production to 26.5 million tonnes of iron ore a year."

This is not the first time a local judge asked Anglo to reschedule a public hearing about Phase 3 of Minas Rio. In April, a minor court ruled that the miner had not announced the hearing in the way stipulated by law, and that it also failed to provide locals with environmental impact studies early enough for them to read and analyze the proposal ahead of time.

Anglo has already been granted permission for a second phase at Minas Rio, but is now attempting to receive a licence for a third and final expansion, which the company hopes to get by June 2018.

According to Anglo, the third phase is critical for the mine to reach full capacity of 26.5 million tonnes of iron ore a year by 2019. Together with increasing the current pit's size, the project is expected to generate 800 new jobs during construction, adding to the more than 4,500 positions the project has already created, it said in the statement.

The final expansion will also allow the century-old company to continue operating for at least another 20 years in the iron ore-rich region.
Writedowns and environment-related worries

Getting to this point has not been easy for the Anglo-Australian firm. After spending USD 5.5 billion between 2007 and 2008 to buy the developing mine from Brazilian ex-billionaire Eike Batista, the company had to invest another USD 8.4 billion, more than twice what was originally projected, to bring it to production in 2014.

The deal soon soured as rising global iron ore output overwhelmed demand, causing prices to tumble 80% from their 2011 peak. The miner also saw itself forced to write down the value of the asset by about USD 4 billion, underscoring how the group mistimed its entry into the iron ore sector.

"Main tailings pond at Minas Rio, with a capacity of 370 million cubic metres, is seven times larger than the Samarco's facility that broke in 2015."

And while prices for the commodity have recovered lately (they climbed 81% in 2016), this year’s extreme volatility is casting doubts on whether Anglo’s costly bet for iron ore will or will not eventually pay off.

On top of that, there are mounting concerns over potential environmental damage an accident similar to the one affecting the Vale-BHP joint venture in 2015 could have caused.

The main tailings pond at Minas Rio, with a capacity of 370 million cubic metres, is seven times larger than the Samarco's facility that broke in 2015, killing 19 people and contaminating hundreds of kilometres of the Doce river valley and the sea around the river mouth.

According to the London Mining Network, a coalition of environmentalists and campaign groups, communities below the Minas Rio dam are in the area defined as a “self-rescue zone” because there would not be enough time for competent authorities to intervene in case of an incident.

Anglo American has noted that Phase 3 of the mine expansion includes plans to reinforce the dam. The technical design and the construction of the tailings dam, says the company, differs from Samarco’s in that is a “downstream” construction as opposed to the “upstream” structure that failed in 2015. It would mean that heightening Minas Rios dam wouldn’t involve constructing each extension over the compacted, but potentially unstable, wastes in the tailings pond.

Source : Mining com
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China’s B&R Initiative to boost steel demand by 150 million tonnes - BHP Billiton

ECNS reported that according to mining giant BHP Billiton, the Belt and Road Initiative will see China's steel output maintain its current high levels, with production set to peak by the middle of next decade. BHP estimates that various projects being implemented under the flag of the Belt and Road will push incremental steel demand up by 150 million tonnes over the next decade. In the 68 Belt and Road countries and regions, this would represent growth in local demand of three to four percent per year, double the rate seen since 2011.

BHP's report, compiled by analyzing 2,000 projects linked to the initiative and focusing on what it identifies as 400 core projects, states that Chinese mills are in prime position to supply the steel required along the Silk Road Economic Belt and the 21st Century Maritime Silk Road.

BHP's report finds that of the 68 countries and regions that make up the Belt and Road countries, only 10 are net exporters of steel, and 20 don't have any steel smelting capacity at all. This puts China, which is still looking to cut overcapacity in its steel sector as part of ongoing supply-side reform, in pole position to provide steel for projects that BHP estimates will cost USD 1.3 trillion.

BHP's report suggests that of the 150 million tonnes of extra steel required by the Belt and Road, 80% would be used in structures and reinforced concrete, with 20% going into machinery and other equipment."

BHP's research finds that 70% of Belt and Road projects are focused on developing infrastructure like power, railways, pipelines and other transport projects.

BHP suggests that the Belt and Road Initiative will be a catalyst for a virtuous cycle of economic development rather than providing funding for everybody's infrastructure needs, citing the Asian Development Bank's estimate that Asia needs USD 26 trillion in infrastructure investment by 2030, implying USD 1.7 trillion in spending per year."

BHP estimates that China will ultimately double its accumulated stock of steel in use, which is currently about 6 tonnes per capita.

However, if China is going to be the main source of steel for Belt and Road projects, it remains unclear how the continued demand for its output will play out alongside the government's pledge to tackle air pollution.

Source : ECNS
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Chinese steel demand in 2017 to go up by 3-4pct - CISA

Global Times reported that a senior official of the China Iron and Steel Association said that demand for steel in China is expected to rise 3-4% this year, with consumption better than expected. Mr Wang Liqun, vice chairman at CISA, said “We expect consumption for steel products this year to grow 3 to 4 percent.”

According to CISA, despite the Chinese government's efforts to cut excess capacity in its bloated steel sector, the country's output of the building material is forecast to rise to 840 million tonnes this year from 808 million tonnes in 2016.

In slashing excess capacity, China has tightened its environmental protection rules as it fights smog, while in the process weeding out smaller steel producers and allowing bigger players to dominate the sector. China's infrastructure push has spurred steel demand this year, lifting profit margins at producers to the highest in years and steel production to record levels.

Source : Global Times
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Indian Railways may float global tender to buy rails - Minister

Financial Express reported that for the first time, Indian Railways will float global tenders to buy rails, as Steel Authority of India Limited, its sole supplier, can’t meet the transporter’s increased demand. In a reply in the Rajya Sabha during the monsoon session of Parliament, minister of state of railways Mr Rajen Gohain had said, “Rail requirement that is not met by SAIL is amenable to procurement from alternative sources. For the year 2017-18, SAIL has committed to supply 11.45 lakh tonne rails. The balance requirement of about 3.14 lakh tonne is under consideration for procurement from sources other than SAIL.”

Mr Piyush Goyal, who took charge recently in the wake of a spate of rail accidents, has identified track renewal as a focus area to prevent such incidents from taking place.

A railway official said “The minister has made it clear that rail is essential for maintenance, renewal and also for new projects. So the requirement has multiplied. Rail procurement will be given priority. We will look at all options — both indigenous and overseas.”

The railways had earlier also considered issuing a global tender but the plan was put on the back burner given the government policy which stipulated use of Indian steel in infrastructure projects.

Source : Financial Express
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Big Chinese steelmakers to survive war on smog

Reuters reported that China’s biggest steel makers have rarely had it so good. After decades of badgering by Beijing to consolidate and get cleaner, the country’s top state owned producers are passing emissions and efficiency tests that their smaller, private counterparts are now largely failing. Many small steel companies are being forced to curb or shut operations for extensive inspections as part of stepped-up efforts by Beijing to combat air pollution. As a result, China’s steel majors have been able to crank output to record levels and enjoy the best operating margins in over seven years.

The inspections are part of a years-long drive to clear China’s skies of toxic air and rid its industrial landscape of excess capacity by forcing metal producers and other heavy industry to modernize, merge or shut down.

The efforts appear to be paying off for the country’s biggest so-called national champions. Baosteel, which last year became China’s top steelmaker after acquiring a smaller rival, Wuhan Iron and Steel, posted its best first-half net profit in five years of CNY 6.17 billion up 78% from the year-earlier period. Other big steelmakers, like Hesteel and Maanshan Iron and Steel, saw January to June profit more than triple.

The campaign “might be fully legitimate but the result seems to be more benefiting the SOEs and the smaller ones are taking the hit,” said Daniel Meng, analyst at CLSA in Hong Kong, referring to state-owned enterprises.

China has shut more than 600 steel mills producing low-grade construction steel as of the end of June, accounting for total capacity of 120 million tonnes, according to the state-owned China Economic Daily.

Source : Reuters
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Petron Engineering bags order worth INR 280 crore from JSW

Petron Engineering Construction has received an order worth INR 280 crore from JSW Steel. The company has received purchase order from JSW Steel Limited, for supply, fabrication, erection & alignment of prefabricated steel structure for Blast Furnace#2 and Raw material handling system Conveyor Gallery and Junction House at Dolvi in Maharashtra.

Source : Strategic Research Institute
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Jharkhand raises INR 3000 crores demand for illegal iron ore mining

The Pioneer reported that acting on the recent Supreme Court order given in the case of illegal iron ore mining the Mines and Geology Department has finally dispatched the demand list to host of companies for alleged illegal mining taken place in Jharkhand during 1994-1995 and 2000-01. Though in total the amount has been accumulated nearly to INR 3000 crore, much below what was calculated before. As per the earlier calculation done based on the MB Shah Commission’s figures and formula set for recovery, demand in the tune of INR 7,598 was raised from iron ore mining defaulters operating in the State.

It is learnt that the office of District Mining Officer of Chaibasa has raised demand in the tune of INR 1300 crore from SAIL to which the PSU thinks differs considerably.

Confirming the development taken place only last week a senior official of the Government owned Steel Authority of India Limited quipped that further reconciliation on the demand raised would take place after current festive season. He told “We have received the demand quoted by them. There is huge mismatch between the figure what they have arrived at and as per our own calculations. We have consulted the Mines Department and requested for a meeting in this regard. It is expected that the meeting would take place after Durga Puja.”

He said “There is difference of opinion and we would challenge the quantum of penalty on various grounds. For example, they have claimed that required Environmental Clearance (EC) had not been acquired for Kiriburu mines for a particular period which was there in place as per our records. Similar is about CTO (consent to operate) and excess production beyond what was permitted in the EC. Since it is a subject of calculation and facts on the table, we together can re-examine and verify the figures.”

The official added that as per their estimation the penalty should be anything between INR 300-400 crore.

Source : The Pioneer
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Finishing mill to be equipped with modern actuators for setting strip geometry

ArcelorMittal trusts in SMS group to modernize the hot strip mill at Dunkirk

SMS group has received from ArcelorMittal Atlantique et Lorraine an order for the modernization of the hot strip mill at Dunkirk, France. The modernization covers the installation of the CVC®plus bending and shifting system, of new drive spindles in all finishing stands, and the installation of a new PCFC® system (Profile Contour and Flatness Control). This modernization provides the hot strip mill with a powerful actuator for influencing the strip geometry and prepares the mill for future challenges.

The CVC®plus system with integrated work-roll bending system of SMS group is the worldwide leading technology for the setting of hot strip profile, contour and flatness and is used in more than 400 hot strip mill stands all over the world. On the basis of the process parameters, PCFC® calculates for every strip the correct shifting position of the work rolls, which are provided with a special barrel grind, and the setting values of the work-roll bending system.

This way the roll gap is ideally adapted to the changing conditions and the mill can produce strip with close geometrical tolerances. The drive spindles for ArcelorMittal’s Dunkirk mill will be SIEFLEX® toothed universal joint shafts.

Modernization will be implemented in three steps. PCFC® will be installed as early as at the end of 2017 and operate in parallel with the existing control system. This so-called shadow mode makes it possible to check all functions of the PCFC®, the inter-play with the automation environment, and allows adaptation to the products of ArcelorMittal Dunkirk. In the end, this way of proceeding guarantees a smooth start-up of the new system. This start-up of the PCFC® will take place after the installation of the new bending and shifting systems in the first four stands during the annual shutdown scheduled for August 2018. The modernization of stands F5 to F7 will follow one year later.

With this order, ArcelorMittal and SMS group continue their good cooperation in the modernization of the hot strip mill at Dunkirk. In the period between 2010 and 2014 SMS group replaced a total of nine main gear units of the roughing mill (R2 to R5) and the finishing mill (F1 to F5). Only some months back, at the end of 2016, SMS group had successfully completed the modernization of ArcelorMittal’s hot strip mill at Ghent, Belgium.

SMS group is a group of companies internationally active in plant construction and mechanical engineering for the steel and nonferrous metals industry. It has some 13,500 employees who generate worldwide sales of more than EUR 3 billion. The sole owner of the holding company SMS GmbH is the Familie Weiss Foundation.

www.sms-group.com/press-media/press-r...
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US buying more Russian steel - Census Bureau

The Tribune-Review reported that United States is buying more steel products from Russia and less from Japan, Korea and France. According to the Census Bureau, for the year, steel imports are up with US companies buying 21 million metric tons through July compared to 17.2 million metric tons in the first seven months of 2016.

The agency said that the monthly trend, however, was a slight decrease from 3.1 million metric tons in July to 3 million metric tons in August. In dollar figures, steel imports fell from $2.7 billion to USD 2.5 billion.

The agency reported that one factor driving the monthly decrease was fewer imports of “oil country goods,” which are steel products used in the oil and gas industry such as piping.
Source : The Tribune-Review
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Intumescent geopolymer bound coatings for fire protection of steel

KOBV reported that the passive fire protection of steel structures and other load-bearing components will continue to gain importance in future years. In the present contribution, novel intumescent aluminosilicate (geopolymer-bound) composites are proposed as fire-protective coatings on steel.

Steel plates coated with these materials were exposed to the standard temperature-time curve as defined in ISO 834 – 1:1999. The coatings partially foamed during curing and expanded further during thermal exposure, demonstrating their intumescent characteristic. Thermogravimetryandoscillatory rheometry determined that the intumescent behavior is attributed to a transition to a viscous state (loss factor > 1) in the temperature range of major water release, differing from conventional geopolymers. XRD and SEM images showed that the coatings had characteristics of ceramic or glass-ceramic foams after fire resistance testing, suggesting superior performance under challenging conditions. The thickness of the coatings influenced their foaming and intumescent behavior and thus the time for the coated steel plates to reach 500 °C.

A number of additives were also studied with the best performance obtained from samples containing sodium tetraborate.Acoating of just 6mmwas able to delay the time it takes for a steel substrate to reach 500 °C to more than 30 minutes.

Source : Kobv
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NLMK closes its USD 500 million Eurobond offering

NLMK the largest steel producer in Russia and a leading international steel company, today announces the closing of its USD 500 million 7 year Eurobond placement with an annual coupon rate of 4.00%. Interest payments on the Eurobonds are payable semi-annually.

Source : Strategic Research Institute
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