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AISU Steel News April 2020
Arab Iron and Steel Union
Latest News
North Africa
• Arab Iron and Steel Union mourns the death of Mr FADEL SEKKAT,
Chairman Maghreb Steel Company. • Algeria suspends delay penalties on firms hit by coronavirus • Egyptian Iron and Steel Company pumps 50 million pounds in new
investments • Egypt steel exports declined in Q1 • Egypt : Steel tariffs continue at 25% and 16% for billet in light of the
coronavirus crisis • Egypt eyes EGP 620m revenue from new steel, cement licences • Tunisia ELFOULADH offers 20,000 tons of scrap for sale • Moroccan steel industry incurs losses of $ 35 million Gulf Area • Qatar Steel became the first company in the Middle East to achieve “1
Rosette” rating from UK CARES • Qatar Steel starts 2020 with challenges, reshapes strategy World • Steel prices in the Last week of April • Euro zone economy shrinks at record rate, worse to come • World crude steel production decreased by 6% in March • China steel sector slows growth due to coronavirus outbreak • The price of US oil has turned negative for the first time in history. • US Steel Imports Down 21% in January – February 2020 • China’s steel exports decrease by 16% in January-March
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Latest News
North Africa
Arab Iron and Steel Union mourns the death of Mr FADEL SEKKAT, Chairman Maghreb Steel Company.
In the Name of Allah the Most Gracious, the Most Merciful. With great sadness and sorrow, we received the death of the forgiven Mr FADEL SEKKAT, Chairman of the Board of Directors of Maghreb Steel
Company and a member of the Council of the Arab Iron and steel Union, may Allah have mercy on him.
In the wake of this great affliction, Dr Kamel Djoudi, the Secretary-General
and all the employees of Arab Iron and Steel Union extend their sincere condolences to the family of the deceased, hoping that Allah will inspire them with patience and solace. We ask Allah Almighty that the deceased dwell in
His spacious gardens. “Truly to Allah we belong and truly, to Him we shall return”
Great truth of God Algeria suspends delay penalties on firms hit by Coronavirus Algeria, seeking to ease the impact of Coronavirus on state and private sector firms, it will suspend the implementation of financial penalties for delays in carrying out projects across various sectors, the prime minister‘s office said. The decision followed a measure earlier this month to defer or reschedule loan payments for companies affected by the virus. As part of steps to combat its spread, the government has given 50% of employees paid leave and suspended public transport, depriving firms of workers and vital equipment. ”These measures have negatively impacted firms, which are suffering a slowdown in their activities, “the government said in a statement. “This is due to delays in the supply of equipment and raw materials and the unavailability of the workforce. “
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North Africa
Egyptian Iron and Steel Company pumps 50 million pounds in new investments Egyptian Iron and Steel Company, one of the holding companies for metallurgical industries, has revealed that it aims to pump 50 million pounds in new investments in the company for the next fiscal year 2020-2021, in order to raise the efficiency of operating rates, through improving its performance and development. The company added in its statement today about the budget for the next fiscal year that it aims to reduce losses next year to about 276 million pounds, as it aims to produce 175 thousand tons, or 156% compared to the production of the fiscal year 2018-2019. . Egypt steel exports declined in Q1 The monthly report issued by Export Council of Building Materials in Egypt revealed a decline in iron and steel exports in Q1 in 2020 ″ to record $138 million compared to $213 million in the same period last year, down by 35%. The report indicated that 5 countries acquired 67% of Egypt’s total steel exports in the first quarter of 2020, to $92.419 million, topped by Saudi Arabia with a value of $44.767 million, compared to $54.697 million, down by 18%. Spain ranked second in the list of the top 5 countries importing Egyptian steel, with a value of $ 15.144 million, compared to $ 7.622 million, up by 99%. The report said that Egypt’s steel exports to the Netherlands increased by $12.6 million compared to $2.412 million, up by 422% and Kenya increased to $9.361 million compared to $6.916 million, up by 35%. The report revealed that the value of steel exports to Italy decreased to $10.547 million, compared to $18.271 million down by 42%. Egypt: Steel tariffs continue at 25% and 16% for billet in light of the Coronavirus crisis The Egyptian Minister of Industry and Trade, Neven Jameh, decided to extend
the current duties imposed on Egypt’s rebar and billet import tariffs, and
postponed their reduction for 6 months until October 11th, when it was
scheduled to decrease from 16% for billet starting from April 12th , 2020 to
13%, but the reduction was postponed to next October, as well as for rebar,
which has a fee of 25%, and was scheduled to reduce it to 21% as of April
12th.
The decision aims to protect the national industry in the light of
the Coronavirus crisis, and to limit harmful practices on the local product.
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North Africa
Egypt eyes EGP 620m revenue from new steel, cement licences The Egyptian government is looking to generate EGP 620 million in revenue from the issuance of new steel and cement production licenses in the fiscal year 2020/2021, Reuters reported, citing an explanatory note for the country’s draft budget. The local cement industry has been witnessing a recession due to an oversupply, leading to the closure of many factories. As for the steel industry, billet producers and steel rolling factories are facing a deepening dispute on the import fees imposed on iron billets and steel rebar.
Egypt’s steel output ranges between 7-7.5 million tonnes per year. Tunisia ELFOULADH offers 20,000 tons of scrap for sale We inform you that “STS ELFOULADH ” proposes to sell for export to the highest bidder one (01) lot of steel scrap as follows: Description: Bulk steel scrap and in the form of medium-sized packages: 0.4 m x 0.4 m x 0.8 m Quantity: 20,000 Tons (+/- 30%) The deadline for receiving offers is May 08, 2020 and the needed information for participation are defined in tender ‘s conditions. Interested parties in this Tender can contact ELFOULADH / Sales and Marketing Department directly, at its address in Menzel-Bourguiba every working day from Monday to Friday from 8:00 a.m. to 12:00 p.m. to make a visit to assess the stocks put up for sale. Sales and Marketing Department E-mail : [email protected] TEL : +216 72 473222 Fax : +216 72 473050/072
Moroccan steel industry incurs losses of $ 35 million The Moroccan steel industry incurred losses of $ 35 million in 2019, as the Moroccan Steel Company (Maghreb Steel) announced a loss of 293.4 million MAD ($ 31 million) during 2019. As for Sonasid, which specializes in the production of rebar and wire windings, it announced a loss of 41 million MAD ($ 4.32 million) during 2019, compared to a profit of 13 million MAD ($ 1.37 million) during 2018. The two Moroccan companies attributed the loss to the low prices of iron and steel products in the global markets, the rise in imports of competing products, especially from Turkey, in addition to the high prices of production raw materials. Regarding the new context imposed by the Corona pandemic, the two companies announced their desire to continue operating amid strict health and security conditions, with the closure of social facilities and accessories for factories, such as prayer halls, sports halls, restaurants and canteens. The two companies have also reduced the number of workers present in the production units to the minimum necessary, and all the administration’s work, which can be done remotely, has been transferred to the employees ’homes.
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Latest News
Gulf Area
Qatar Steel became the first company in the Middle East to achieve “1 Rosette” rating from UK CARES Qatar Steel became the first company in the Middle East and one of the four companies in the world to achieve “1 Rosette” rating for our good performance compared with other 22 certified companies complying only basic requirements of “PASS” rating, to be approved by the authority of UK CARES under sustainable construction steel certification scheme, for the production of continuous cast steel billets and hot rolled steel bar for the reinforcement of concrete. Launched in 2009, CARES Certification Scheme for Sustainable Constructional Steel is to ensure confidence in the constructional steel performance across all the aspects of sustainability, economic, social and environmental. This certification is one step towards improving upon the sustainability performance of reinforcement bars with a systematic approach to management systems. Mr. Mohammed Bin Nasser Al Hajri, MD & CEO of the company said that commitment to quality is embedded in our routine business operations. It demonstrates both leadership and commitment and reflects Qatar Steel’s highest quality of operational excellence. Finally, MD & CEO thanked the team members for their dedication to consistently achieving this level of quality and raising company’s reputation internationally. “ Qatar Steel starts 2020 with challenges, reshapes strategy Qatar Steel increased the volume of sales by 06% and profits by 03% to $354 million, though, it encountered a net loss of $24 billion, which took the production to drop by 9.5% to 572 000 tonnes, as it is the biggest decrease in crude steel output among GCC countries in January-March 2020. Owing to the oil price fall and the COVID-19 outbreak. Therefore, Qatar Steel is determined to revise strategy for the future period to meet difficulties. Overall, Qatar Steel managed to take advantage out of the situation, could prove to be the only supplier of value-added and high-quality steel products to Asia, and managed to ship material during the pandemic. In Q1 2020, the prices improved by 8% compared to Q4 2019. Owing to these factors, net losses recovered by 28% over the reported period. The transformation has already started In Q2 2020, as Qatar Steel made a firm decision to overcome challenges and weak market fundamentals, especially in the global markets. Due to these factors “the capacity of domestic operations within the steel segment will be resized to 0.8 million tonnes of rebar with an intent to provide the local sector demand only”, IQ indicated.
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Latest News
World
Steel prices in the Last week of April According to the prices of the global steel markets, the prices of scrap 255-
258$ / ton, while the prices of Billets between 350- 385 $/ ton and the
prices of Rebar between 400- 420$ / ton.
The following prices of iron and steel in global markets on 24/4/2020
w-o-w Date Min Max Place Product
= 2020/4/24 255 258 CFR Turkey Scrap HMS 1&2 (80:20)
- 2020/4/24 83 83 CFR China Iron ore Fe 62%
= 2020/4/24 375 385 CFR Turkey
- 2020/4/24 365 365 FOB Egypt Billet
- 2020/4/24 350 350 FOB Black Sea
= 2020/4/17 400 400 FOB Black Sea Rebar
- 2020/4/24 410 420 TUR- FOB
= 2020/4/24 360 375 FOB China HR coil
- 2020/4/24 460 470 CFR Turkey CR coil
Euro zone economy shrinks at record rate, worse to come
The Eurozone economy contracted at a record rate in the first three months
of the year and inflation slowed sharply as economic activity in March came
to a halt because of the COVID-19 pandemic, data showed on Thursday.
Economists expect even worse numbers for the second quarter.
According to a preliminary flash estimate from the European Union’s
statistics office Eurostat, economic output in the 19 countries sharing the
euro currency in January-March was 3.8% smaller than in the previous three
months – the sharpest quarterly decline since the time series started in 1995.
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World
World crude steel production decreased by 6% in March World crude steel production for the 64 countries reporting to the World
Steel Association (worldsteel) was 147.1 million tonnes (Mt) in March
2020, a 6.0% decrease compared to March 2019.
Due to the ongoing difficulties presented by the COVID-19 pandemic,
many of this month’s figures are estimates from national and regional
associations, which may be revised with next month’s production update.
China’s produced 79.0 Mt of crude steel in March 2020, a decrease of 1.7%
compared to March 2019. India estimates 8.7 Mt of crude steel production
in March 2020, down 13.9% in March 2019. Japan estimates 8.2 Mt of
crude steel production in March 2020, down 9.7% in March 2019. South
Korea produced 5.8 Mt of crude steel in March 2020, down 7.9% in March
2019.
World crude steel production was 443.0 Mt in the first three months of
2020, down by 1.4% compared to the same period in 2019. Asia produced
315.2 Mt of crude steel in the first quarter of 2020, a decrease of 0.3% over
the first quarter of 2019. The EU produced 38.3 Mt of crude steel in the first
quarter of 2020, down by 10.0% compared to the same quarter of 2019.
North America’s crude steel production in the first three months of 2020
was 29.5 Mt, a decrease of 4.0% compared to the first quarter of 2019.
Crude steel production of Arab countries
Egypt’s crude steel production in March was 682,000 tons, down 3.5%
compared to March 2019. Saudi Arabia produced 675,000 tons of crude
steel in March 2020, up 5.8% compared to March 2019. UAE produced
264,000 tons of crude steel up 25.0% compared to March
2019. Qatar produced 163,000 tons of crude steel down 30.5% compared to
March 2019. Libya produced 23,000 tons of crude steel, down 48.8% .
.
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World
China steel sector slows growth due to Coronavirus outbreak China’s steel sector was badly hurt by the novel Coronavirus outbreak, with
production slowing and prices slumping in the first quarter of this year, but
analysts expect recovery in Q2 as demand rebounds.
Production of rolled steel totaled 267 million tonnes in Q1, down 1.6
percent year on year, as compared with an increase of 10.8 percent during
the same period last year, data from the Ministry of Industry and
Information Technology (MIIT) showed.
Steel prices also saw notable decline, with an index on rolled steel price
dropping 5.7 percent year on year in Q1.
Affected by COVID-19, major steelmakers suffered from revenue loss of
over 5 percent in Q1, while profits slumped by more than half, according to
the MIIT.
Demand for steel is expected to bounce back in the second quarter as
companies resume production and the country steps up infrastructure
investment, analysts said.
The majority of steelmakers tracked by the China Iron and Steel Association
had resumed production amid broader reopening in the Chinese economy,
with 178 out of 191 enterprises back on track as of April 19.
The price of US oil has turned negative for the first time in history.
That means oil producers are paying buyers to take the commodity off their
hands over fears that storage capacity could run out in May.
Demand for oil has all but dried up as lockdowns across the world have kept
people inside.
As a result, oil firms have resorted to renting tankers to store the surplus
supply and that has forced the price of US oil into negative territory.
The price of a barrel of West Texas Intermediate (WTI), the benchmark for
US oil, fell as low as minus $37.63 a barrel.
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World
US Steel Imports Down 21% in January – February 2020 Based on preliminary Census Bureau data, U.S. imported a total of
1,505,000 net tons (NT) of steel in February 2020, including 1,344,000 net
tons (NT) of finished steel (down 52.2% and 18.4%, respectively, vs.
January final data).
Through the first two months of 2020, total and finished steel imports are
4,655,000 and 2,992,000 net tons (NT), down 21.3% and 28.7%,
respectively, vs. the same period in 2019.
China’s steel exports decrease by 16% in January-March In the January-March period this year, China exported 14.286 million mt of
finished steel, down 16% year on year, as announced by the Chinese
customs authorities on April 14, while the year-on-year decline rate slowed
down by 11% points compared to that recorded in the January-February
period of the year.
In March alone, China exported 6.476 million mt of finished steel, up 2.4 %
year on year, as earlier this year Chinese steel mills have faced lower
domestic demand due to the pandemic and decided to sell more in the
export market. Nevertheless, the rebounding trend is unlikely to continue in
the future as the coronavirus pandemic worldwide has negatively impacted
demand in overseas markets and competition has increased.
China imported 3.178 million (MT) of finished steel in the January-March
period this year, increasing by 9.7% year on year, 7.6 % points faster than
the increase rate recorded in the first two months of the year.
In March alone, China imported 1.137 MT of finished steel. Imports of
finished steel will likely continue due to the strong competition among
overseas sellers
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