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ArcelorMittal report loss in second quarter
ArcelorMittal, the world's largest steelmaker announced 792 million USD losses in the second quarter. Lakshmi Mittal, chief executive of ArcelorMittal said that the company will have improved result in third quarter, especially from BRICs market. There were sustained signs of recovery in India, Russia, Eastern Europe and Brazil amid new construction and China's economic-stimulus measures. However, situation of U.S. and Western Europe may not improve early than the end of last year. In North America, at present, just three out of the company's nine blast furnaces are operating or planning to operate and in Europe, 15 of the company's 25 blast furnaces are expected to be online during the third quarter.
Two re-rollers are officially duty-free importers in Thailand.
Two re-rollers are officially duty-free importers in Thailand.
Thai ministry of finance has admitted Siam United Steel and Thai Cold Rolled Steel are duty-free importers, to end dispute between Thai government and Japan government. Thai government repay over $10 m now in duty from this two re-rollers.
Under the free trade agreement both countries signed in November 2007, Thai consumers of Japanese steel that were recognized to import flat rolled items from Japan duty-free. But Thai refused to recognize two Japanese re-rollers Nippon steel ‘s Siam United Steel and JFE Steel ‘s Thai Cold Rolled Steel Sheet , were importers duty-free. Then Thai government has forced both to pay 5% duty until recently.
Thai ministry of finance has admitted Siam United Steel and Thai Cold Rolled Steel are duty-free importers, to end dispute between Thai government and Japan government. Thai government repay over $10 m now in duty from this two re-rollers.
Under the free trade agreement both countries signed in November 2007, Thai consumers of Japanese steel that were recognized to import flat rolled items from Japan duty-free. But Thai refused to recognize two Japanese re-rollers Nippon steel ‘s Siam United Steel and JFE Steel ‘s Thai Cold Rolled Steel Sheet , were importers duty-free. Then Thai government has forced both to pay 5% duty until recently.
Metallurgical Coal Exports From Central Kalimantan Expanding
There has surfaced a possibility on significant increase in metallurgical coal exports from Central Kalimantan,
Indonesia, from now. MGM coal mine operated by PT Marunda Graha Mineral enters into full scale production and at the
same time development projects of new concessions in the same province Suprabari and Haju concessions are now on
progress.
As well known, in Central Kalimantan rich reserves of high quality metallurgical coal exist, but in part due to delay
in upgrading of infrastructure, coal developments are left almost untouched. In effect, at this moment in Central Kalimantan,
PT MGM is the only company operating metallurgical coal mine.
At this moment PT MGM operates opencut coal mine (MGM mine) at Kabupaten Barito Utara in Central
Kalimantan. The types produced coal are high quality semi-soft coking coal and thermal coal, which are exported to
Japan and other destinations through Itochu Corp. owning 23.5 percent shares of PT MGM.
Salable coal production at MGM coal mine remains 1,600,000 MT per year or so, which will be lifted to 2,000,000
MT per year by full scale production sooner or later. The production ratios are about 80 percent of semi-soft coking coal
and about 20 percent of thermal coal, which means production by 1,600,000 MT per year maximum of semi-soft coking
coal is possible.
PT MGM uses Barito River for its coal transport and semi-soft coking coal produced at MGM mine is conveyed
to off the shore of Banjarmasin down Barito River to be further transported to the large coal loading base of PT Indonesia
Bulk Terminal located at Lauto Island. The distance by barge transport extends over 780 km in total (620 km down Barito
Rover and 160 km on ocean). For reference thermal coal is loaded to ocean carrier off the shore of Banjarmasin.
Since the water depth of Barito River steeply fluctuates between rainy and dry seasons, however, there had been
many occasions of blocking the travel of barge due to too shallow a depth (or too deep). In particular in the dry season
there were several spots where the water depth became extremely shallow and sometimes coal shipments of PT MGM
were interrupted for quite a long time.
With the objective of increase in coal shipments during the dry season, however, at the end of October 2006, PT
MGM installed Intermediate Stock Pile (ISP) with coal stock capacity of 200,000 MT at the middle point of Barito River.
As a result currently coal shipments can be smoothly carried out even during the dry season by way of transporting coal
to ISP beforehand during the rainy season.
On the other hand, Suprabari concession is undeveloped opencut concession located 100 km south of MGM mine
where Itochu Corp. owns 23.5 percent interest just like the case of MGM mine.
At Suprabari concession coal production is to be launched in July 2010 with expected salable coal production of
2,000,000 MT to 2,500,000 MT per year. The types of produced coal are high quality semi-soft coking coal and thermal
coal. For transportation of coal produced at the concession, ISP of PT MGM is utilized.
As a result, upon entrance into full-fledged production at Suprabari concession, exports of 4,000,000 MT to
4,500,000 MT of coal from the concession and MGM coal mine become possible.
On the other hand, Haju concession is undeveloped small scale opencut concession located at the border of East
Kalimantan and Central Kalimantan, and is to be developed as the phase 1 of large scale metallurgical coal development
project Maruwai Project striding over the both Central and East Kalimantan.
BHP Billiton of Australia owns 100 percent interest in Maruwai Project including Haju concession and seems to
be intending to start in earnest development of the concession very shortly. Coal production at the initial stage remains
1,000,000 MT per year which will be raised to 2,000,000 MT per year by expansion works in future. The types of
produced coal are semi-soft coking coal and thermal coal.
Coal produced at Haju concession as well is transported by barge down Barito River to Banjarmasin in South
Kalimantan for export to Asian region and other markets. In order to secure stable coal shipments, BHP Billiton plans to
install its own relaying terminal at Barito River.
At Maruwai, BHP Billiton seem to be intending to first develop Haju concession with lower development costs
and thereafter engage itself in development of large scale concession with higher development costs. After development
of Haju concession, that of Lampunut concession is under planning. At the concession metallurgical coal production by
3,000,000 MT to 5,000,000 MT per year is envisaged.
Indonesia, from now. MGM coal mine operated by PT Marunda Graha Mineral enters into full scale production and at the
same time development projects of new concessions in the same province Suprabari and Haju concessions are now on
progress.
As well known, in Central Kalimantan rich reserves of high quality metallurgical coal exist, but in part due to delay
in upgrading of infrastructure, coal developments are left almost untouched. In effect, at this moment in Central Kalimantan,
PT MGM is the only company operating metallurgical coal mine.
At this moment PT MGM operates opencut coal mine (MGM mine) at Kabupaten Barito Utara in Central
Kalimantan. The types produced coal are high quality semi-soft coking coal and thermal coal, which are exported to
Japan and other destinations through Itochu Corp. owning 23.5 percent shares of PT MGM.
Salable coal production at MGM coal mine remains 1,600,000 MT per year or so, which will be lifted to 2,000,000
MT per year by full scale production sooner or later. The production ratios are about 80 percent of semi-soft coking coal
and about 20 percent of thermal coal, which means production by 1,600,000 MT per year maximum of semi-soft coking
coal is possible.
PT MGM uses Barito River for its coal transport and semi-soft coking coal produced at MGM mine is conveyed
to off the shore of Banjarmasin down Barito River to be further transported to the large coal loading base of PT Indonesia
Bulk Terminal located at Lauto Island. The distance by barge transport extends over 780 km in total (620 km down Barito
Rover and 160 km on ocean). For reference thermal coal is loaded to ocean carrier off the shore of Banjarmasin.
Since the water depth of Barito River steeply fluctuates between rainy and dry seasons, however, there had been
many occasions of blocking the travel of barge due to too shallow a depth (or too deep). In particular in the dry season
there were several spots where the water depth became extremely shallow and sometimes coal shipments of PT MGM
were interrupted for quite a long time.
With the objective of increase in coal shipments during the dry season, however, at the end of October 2006, PT
MGM installed Intermediate Stock Pile (ISP) with coal stock capacity of 200,000 MT at the middle point of Barito River.
As a result currently coal shipments can be smoothly carried out even during the dry season by way of transporting coal
to ISP beforehand during the rainy season.
On the other hand, Suprabari concession is undeveloped opencut concession located 100 km south of MGM mine
where Itochu Corp. owns 23.5 percent interest just like the case of MGM mine.
At Suprabari concession coal production is to be launched in July 2010 with expected salable coal production of
2,000,000 MT to 2,500,000 MT per year. The types of produced coal are high quality semi-soft coking coal and thermal
coal. For transportation of coal produced at the concession, ISP of PT MGM is utilized.
As a result, upon entrance into full-fledged production at Suprabari concession, exports of 4,000,000 MT to
4,500,000 MT of coal from the concession and MGM coal mine become possible.
On the other hand, Haju concession is undeveloped small scale opencut concession located at the border of East
Kalimantan and Central Kalimantan, and is to be developed as the phase 1 of large scale metallurgical coal development
project Maruwai Project striding over the both Central and East Kalimantan.
BHP Billiton of Australia owns 100 percent interest in Maruwai Project including Haju concession and seems to
be intending to start in earnest development of the concession very shortly. Coal production at the initial stage remains
1,000,000 MT per year which will be raised to 2,000,000 MT per year by expansion works in future. The types of
produced coal are semi-soft coking coal and thermal coal.
Coal produced at Haju concession as well is transported by barge down Barito River to Banjarmasin in South
Kalimantan for export to Asian region and other markets. In order to secure stable coal shipments, BHP Billiton plans to
install its own relaying terminal at Barito River.
At Maruwai, BHP Billiton seem to be intending to first develop Haju concession with lower development costs
and thereafter engage itself in development of large scale concession with higher development costs. After development
of Haju concession, that of Lampunut concession is under planning. At the concession metallurgical coal production by
3,000,000 MT to 5,000,000 MT per year is envisaged.
'Significant uncertainty' over G Steel
'Significant uncertainty' over G Steel's liquidity: Moody's
Moody’s Investors Service has given a bleak outlook for Thailand’s second-largest hot rolled coil producer, G Steel Public Co, as it downgrades the company’s credit ratings due to “significant uncertainty over G Steel’s current liquidity position.”
Based on end-December 2008 financial statements, G Steel’s external auditors have raised several concerns, including the quality and quantity of allowances provided on the company’s outstanding trade receivables, says Moody’s in a statement seen by Steel Business Briefing.
G Steel had trade receivables of THB 3,957m ($110m) outstanding as at 31 December. Of this, THB 3,582m pertained to three unrelated parties, had incomplete documentation for sales authorisation, lacked evidence of delivery of goods, and did not have signatures acknowledging receipt of goods. The uncertainty of collection of these trade receivables will exacerbate the company’s already poor liquidity and its access to bank funding will be constrained, says Kathleen Lee, a vp with Moody’s.
Moody’s also raised concerns over future losses at G Steel in view of committed higher prices for its consigned or purchases of raw materials versus current market prices. It notes G Steel’s operating environment remains challenging over the medium term and its weak liquidity position. G Steel's near-term financing risk is evident from its scheduled semi-annual loan maturities in 2009, which do not have the support of available committed facilities.
Moody’s downgraded the corporate family rating and senior unsecured ratings of G Steel to Caa3 from Caa1. G Steel officials were unavailable for comments.
News from SBB
Moody’s Investors Service has given a bleak outlook for Thailand’s second-largest hot rolled coil producer, G Steel Public Co, as it downgrades the company’s credit ratings due to “significant uncertainty over G Steel’s current liquidity position.”
Based on end-December 2008 financial statements, G Steel’s external auditors have raised several concerns, including the quality and quantity of allowances provided on the company’s outstanding trade receivables, says Moody’s in a statement seen by Steel Business Briefing.
G Steel had trade receivables of THB 3,957m ($110m) outstanding as at 31 December. Of this, THB 3,582m pertained to three unrelated parties, had incomplete documentation for sales authorisation, lacked evidence of delivery of goods, and did not have signatures acknowledging receipt of goods. The uncertainty of collection of these trade receivables will exacerbate the company’s already poor liquidity and its access to bank funding will be constrained, says Kathleen Lee, a vp with Moody’s.
Moody’s also raised concerns over future losses at G Steel in view of committed higher prices for its consigned or purchases of raw materials versus current market prices. It notes G Steel’s operating environment remains challenging over the medium term and its weak liquidity position. G Steel's near-term financing risk is evident from its scheduled semi-annual loan maturities in 2009, which do not have the support of available committed facilities.
Moody’s downgraded the corporate family rating and senior unsecured ratings of G Steel to Caa3 from Caa1. G Steel officials were unavailable for comments.
News from SBB
News from Key to Metal March 2009
1. New Developments Completed in March
Brazilian materials have again been upgraded with specifications for various steel tubes, sheets and other flat products, carbon steel bars and forgings, and feroalloys.
US AMS aerospace materials have been updated with 50 new specifications for corrosion-resistant alloys.
Heat treatment diagrams for over 1500 European materials have been added.
New articles have been added for you in the KEY to METALS • Steel Knowledge Base:
- Rail Steel, and
- Marine Stainless Steel Applications.
2. Developments Planned for Aprile
South African (SANS) specifications will be added to the Database for the first time, starting with various steel castings and cast irons, tubes and pipes, structural steel, fasteners, and more.
Brazilian materials will be upgraded again with additional ferroalloys, low alloy steels, microalloyed carbon steels, coated steels, cold-rolled products and more.
AMS aerospace will be updated with another 60 new specifications for aircraft quality products, low alloy steels, castings, and corrosion-resistant alloys.
Cross-reference tables will be updated according to the guidelines from the newest UNS 2008 Edition.
And, as usual, two new FREE articles will be added for you to the KEY to METALS • Steel Knowledge Base.
3. Marine Stainless Steel Applications
Marine applications are very demanding. Stainless steel is the ideal material for marine applications due to the fact that it resists rust better than other materials such as brass, bronze, or galvanized steel. By now it is common knowledge that stainless steels ranging from AISI 316 up to 6Mo and superduplex do not always resist seawater.
Crevice corrosion and pitting may develop sooner or later. For example, a 25Cr07Ni super duplex tubular heat exchanger in a marine vessel showed crevice corrosion within 6 months of service. In natural seawater a biofilm will develop on the metal surface and it will always promote the corrosivity of the water.
Microbiological induced corrosion often occurs in seawater, and galvanic corrosion is also a major problem at sea.
Materials selection in marine environment is quickly gaining interest because of the worldwide trend to concentrate major industrial facilities around sea ports in order to save transport cost and increase cooling capacity.
To read more on this topic, visit
steel.keytometals.com/default.aspx?ID=Articles
and select article "Marine Stainless Steel Applications".
Brazilian materials have again been upgraded with specifications for various steel tubes, sheets and other flat products, carbon steel bars and forgings, and feroalloys.
US AMS aerospace materials have been updated with 50 new specifications for corrosion-resistant alloys.
Heat treatment diagrams for over 1500 European materials have been added.
New articles have been added for you in the KEY to METALS • Steel Knowledge Base:
- Rail Steel, and
- Marine Stainless Steel Applications.
2. Developments Planned for Aprile
South African (SANS) specifications will be added to the Database for the first time, starting with various steel castings and cast irons, tubes and pipes, structural steel, fasteners, and more.
Brazilian materials will be upgraded again with additional ferroalloys, low alloy steels, microalloyed carbon steels, coated steels, cold-rolled products and more.
AMS aerospace will be updated with another 60 new specifications for aircraft quality products, low alloy steels, castings, and corrosion-resistant alloys.
Cross-reference tables will be updated according to the guidelines from the newest UNS 2008 Edition.
And, as usual, two new FREE articles will be added for you to the KEY to METALS • Steel Knowledge Base.
3. Marine Stainless Steel Applications
Marine applications are very demanding. Stainless steel is the ideal material for marine applications due to the fact that it resists rust better than other materials such as brass, bronze, or galvanized steel. By now it is common knowledge that stainless steels ranging from AISI 316 up to 6Mo and superduplex do not always resist seawater.
Crevice corrosion and pitting may develop sooner or later. For example, a 25Cr07Ni super duplex tubular heat exchanger in a marine vessel showed crevice corrosion within 6 months of service. In natural seawater a biofilm will develop on the metal surface and it will always promote the corrosivity of the water.
Microbiological induced corrosion often occurs in seawater, and galvanic corrosion is also a major problem at sea.
Materials selection in marine environment is quickly gaining interest because of the worldwide trend to concentrate major industrial facilities around sea ports in order to save transport cost and increase cooling capacity.
To read more on this topic, visit
steel.keytometals.com/default.aspx?ID=Articles
and select article "Marine Stainless Steel Applications".
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