Russia, Arcelor Mittal
According to the forecast of the largest steel producer in the world ArcelorMittal, during 2017 the volume of the world steel consumption may increase by 0.5-1.5% after the 1% improvement in 2016.
“ArcelorMittal Krivoi Rog” has held capital repair of the reheating furnace of the mill MC 250-3 at the long product rolling mill No1. An updated furnace will enable correct heating of steel feed and have positive influence on the efficiency of operation of the complex, the press-service of the enterprise states.
Iron-and-Steel works “ArcelorMittal Temirtau” has suspended the bar-rolling mill for capital repair. It will last 15 days. Within this period the enterprise plans to fulfill large volume of operation both at the bar-rolling mill and reheating furnace.
“Main job includes the repair of the furnace hearth and its cooling system. There will be replaced the channels of the furnace and the ones for scale flushing under the rolling mill.
While steel companies all over the world suffer from record high increase of Chinese export of steel and slowdown in global economy, Russian companies succeed due to the devaluated rouble, Bloomberg writes.
“Russian companies pay salary and bear expenses in rouble, but receive dollars and Euros from an export of products,” the edition writes.
Excess of cheap steel on the global market led to the fact that in recent years the number of anti-dumping investigations in this area increased dramatically. The industry believes that its main threat is a sharp increase in the production in China, but closing from cheap Chinese steel importing countries also block the supply of metal from other countries, including Russia. It becomes increasingly difficult for domestic steelmakers to fight a wave of isolationism on their traditional overseas markets, and they can redirect the export to other countries always.
Since 2010, Russian steelmakers exported about one-third of the produced steel - 25-27 million tons of rolled products per year. These volumes are less than the export sales of 2008-2009, which reached 30 million tons, and may even decline because of the surge in protectionist investigations worldwide. According to the Ministry of Economy, in 2014-2015, 18 new investigations and revisions of measures affecting exports of Russian steel industry were initiated abroad, and eight of them have ended not in favor of Russia.
The net loss of ArcelorMittal rose by 9.6 times to $1.26 bln over 9 months.
Diluted loss per share made up $0.70 against the loss of $0.08 in Jan-September 2014. The company’s sales in Jan-September 2015 fell by 18.1% to $49.597 bln. The operational profit fell by 52.5% to $1.17 bln in Jan-September 2015.
In Q3 ArcelorMittal made a net loss of $711 mln while in Q3 2014 it made a profit of $22 mln. Diluted loss per general share made up $0.40 against the profit of $0.01 in Q3 2014. Meanwhile the sales volume in Q3 fell by 22.3% to $15.589 bln. The operational profit made up $20 mln having fallen in annual terms by 47.95 times.
Iron ore extraction in Jan-September 2015 made up 47.3 mln tons against 47.2 mln tons in Jan-September 2014. In Q3 ArcelorMittal extracted 15.4 mln tons of ore, by 2.5% less than in Q3 2014. Crude steel output in Jan-September 2015 rose by 1.14% to 70.8 mln tons, in Q3 fell by 3.3% to 23.1 mln tons.
ArcelorMittal explains its weak financial results by the steel price fall and low export prices.
The value of the contract is not released.
Metalloinvest of A. Usmanov has signed a contract for the supply of iron ore raw materials with the largest in the world steel making company ArcelorMittal, Metalloinvest reports.
In conformity with the reached agreement, until April 2016 Metalloinvest will ship over 2 mln tons of iron ore concentrate to ArcelorMittal. The iron ore concentrate will be used at the European enterprises of the group, is reported.
The value of the contract is not released.
“The price making for the shipped products will be in conformity with the existing market indices. The formula takes into account the dynamics of prices in the world market of iron ore concentrate”, Metalloinvest reports.
The company sells coal assets in Kuzbass.
Foreign steelmakers continue to reduce the presence in the Russian Federation. Following Alcoa, which has sold the plant in Belaya Kalitva, ArcelorMittal of Lakshmi Mittal is getting rid of the Russian assets. It sells coal "Severniy Kuzbass", bought in 2008, for $ 720 million - NFC of the former managers of "Rostopproma". ArcelorMittal has been unable to develop an asset: in 2013 the production has fallen almost three times, but the Russian-Ukrainian conflict pushed it to sales, the market participants inform.
The Ukrainian largest metallurgic enterprise ArcelorMittal Krivoy Rog has started reverse gas imports from Europe omitting Naftogaz, following the example of Odessa Priportovy plant. Since October, the metallurgic combine imports gas via Slovakia. Its daily consumption is 2 million cubic m of gas. The seller is the affiliated company ArcelorMittal Energy.
Gas price is $360 per 1,000 cubic m, a source in the Ministry of Energy and Coal resources claims. Concerning taxes and transporting expenses, the final price is $480.
Metallurgical complex “ArcelorMittal Krivoi Rog” sees no point in Ukrainian sanctions against Russian metallurgical enterprises.
“Russian steel products are rare on the Ukrainian market. We compete with Russian products on the Ukrainian market. But, the Ukraine can give impetus to counter measures. Second thoughts are best.” “Ukrainian news” writes citing deputy CEO of “ArcelorMittal Krivoi Rog” V.Tkachenko.