Category Archives: Galvanized Plain Coil

South Korea: Galvanised steel exports up 3% on year in H1 CY’21

Leading Asian steel producer and exporter, South Korea, has posted total galvanised steel exports at 3.02 mn t in the Jan-Jun’21 period – over 3% higher compared with the same period last year, as per customs data compiled by SteelMint. Galvanised steel exports were at 2.93 mn t in the first half of CY’20.

Exports to India rise 17%

Although exports to Mexico surged over 44% to 4.20 mn t in H1 CY’21, shipments to China slipped to 0.35 mn t in the period from 0.41 mn t last year. As per SteelMint data, South Korea’s flat steel exports – HRC and heavy plates – dropped by 15% in the period under review mainly on account of HRC exports to China dropping by over 52% on year.

Exports to Japan, however, rose by over 14% to 0.33 mn t as against 0.28 mn t last year.

Likewise, India’s imports from S. Korea were around 0.18 mn t in H1 CY’21, which were 17% higher compared with 0.15 mn t in the corresponding period last year. In contrast to H1 CY’20, exports to India picked up on account of higher demand for high-grade steel products from Indian manufacturers, as import demand had dried up during the pandemic and nationwide lockdown last year. The Indian government has recently refrained from imposing antidumping duty on flat steel imports from S. Korea among a host of other countries.

The other leading destination for South Korean exports, the US, recorded a rise in inbound shipments by 7% to 0.23 mn t in the first half of CY’21 as against 0.21 mn t in the year-ago period.

Automobile exports highest since H1 CY’12

The country’s Ministry of Trade, Industry and Energy has recently announced that S. Korea’s automobile output and exports in the first six months of 2021 posted year-on-year increases of 11.5% and 27.9% respectively. In particular, auto exports recorded double-digit growth of 27.9% for the first time since the first half of 2012.

Global steel prices are at record-highs, and therefore exports are resulting in robust realisations for S. Korean producers. But high global prices have resulted in leading domestic steel producers to raise prices in tandem, although the second COVID-19 wave has adversely impacted domestic consumer sentiment, including auto purchases. The case for exports, therefore, is strong, although galvanised steel exports have slipped over 9% in Jun’21 as against May.

In contrast, domestic consumer demand has been impacted by the second wave of COVID-19 even as demand for flat-rolled products from the automobile and shipbuilding industries remains strong unlike in 2020 when domestic demand had touched rock bottom even as exports to China had picked up pace in H1.

 

China: Posco partners with HBIS Group to build galvanised steel sheet mill

South Korean steel major Posco has partnered with Chinese steel producer HBIS Group to produce and sell automotive galvanised steel sheets, the company declared in a recent statement. Posco and HBIS would be investing $600 million – $300 million each – to build a galvanised steel sheet production plant with capacity of 900,000 t in China’s Tangshan. The two companies have pledged to start construction on the production facility in Jan’22, which is likely to be completed by the end of 2023, the statement issued by Posco stated.

 

India: Tinplate BIS certification applications of 3 global suppliers to India pending

Despite the acute shortage of tinplate/tin-free steel in the country, the applications of three leading international suppliers are pending. As per IS1993:2018, for tinplates, the players are Nippon Steel Corporation (two plants) of Japan, JSC Arcelor Temirtau, Kazakstan and China-based GDH Zhongyue (Zhongshan) Tinplate Industry Co Ltd, SteelMint has learnt.

In tin-free, four applications are pending as per IS 12591:2018. These are two plants from Nippon Steel Corporation, Japan, China’s GDH Zhongyue (Zhonghshan) Tinplate Industry Co Ltd and Jiangsu Suxan New Material Co Ltd.

Scarce imports

SteelMint had earlier reported that the shortage of the metal is stemming from scarce imports of both materials on account of a government standard imposition. On 17 July’20, the Government of India had imposed a BIS standard (Quality Control Order) on imports of tinplate/tin-free steel/products like easy-open ends, peel-off ends etc. Implementation of the same has now been extended up to 17 July’21.

The above exporters of tinplate as well as smaller players have applied to the BIS for getting the registration and approval of their plants but all such applications have been put on hold because of the Covid surge. These applications are pending since last year, it is learnt, because, presently foreign inspection visits are on hold due to restrictions imposed on international travel by GoI as well as governments of other countries in view of the pandemic.

As per Sanjay Bhatia, President, Metal Can Manufacturers Association (MCMA), these overseas players have the capacities and interest in supplying to Indian market but they are not able to do so due to pending approval of their applications. There are other companies too which want to apply but know that the timing is not right at present, he added.

Domestic scenario

The demand for tinplate and tin-free steel in India is 7 lakh tonnes per annum and growing at 5-7% per annum. Around 2.5 lakh tonnes are met through imports while 4-4.5 lakh tonnes are produced domestically. However, the bulk comprises tinplate with the share of tin-free steel at less than 1 lakh tonnes. The material is mainly used in the manufacture of cans and easy-open ends in the food processing and other industries.

Two major players contribute to the domestic 4-4.5 lakh tonnes per annum — The Tinplate Company of India Limited (TCIL), a subsidiary of Tata Steel, and JSW Steel. As per Bhatia, Tatas contribute almost 3 lakh tonnes and JSW Steel 1.5 lakh tonnes to the domestic market while both players also export from total capacities.

In 2019, JSW Steel had an annual cumulative installed tinplate capacity of 3.5 lakh tonnes, of which 1 lakh tonne was through the joint venture company, JSW Vallabh Tinplate. A second phase of expansion was under way towards building a capacity of 6 lakh tonnes per annum, higher than Tata Tinplate’s 3.80 lakh tonnes, as per a media report.

Time is a factor

At present, the dwindling supply is bothering the end-user industry. Bhatia said there is a lead time for can manufacturers. If a manufacturer places an order with a foreign supplier, the consignment will take at least 4-5 months to reach India. “It will take 2-3 months to produce the material and at least 1.5 months for shipping,” said Bhatia.

“Moreover, the government has extended the steel quality control order by only three months. So we are not really being able to create any orders and neither are suppliers accepting the same, because they know they may not be able to ship these in time. As a result, imports have decreased substantially,” Bhatia added.

Another end-user said: “Supply from domestic producers is very tight at present. I am seeking 1,500 tonnes by June but our domestic suppliers are being able to commit only 500 tonnes by that period.”

Only secondary sector, off-the-shelf material is being imported at present, it is learnt.

Several representations have been made by MCMA to the Ministry of Steel and Ministry of MSME for extension of the steel quality control order date till March 2022 due to prevailing pandemic. The MCMA has also recommended complete withdrawal of the quality control order.

~ By Madhumita Mookerji

 

Turkey: MMK Metalurji achieves record production of hot-dip galvanized products in Jan’21

MMK Metalurji – MMK Group’s subsidiary in Turkey, has achieved the highest ever monthly production of hot-dip galvanized products in the month of Jan’21, the company reported. Its Turkey-based facilities – Dortyol and Dilovasi, produced 78,613 t of hot dip galvanized products last month. Pavel Shilyaev, the CEO of MMK Group said that its Turkish facility has received a range of orders for hot dip galvanized products in Jan’21, the fulfillment of which contributed to the record results.

 

Japan: Nippon Steel plans to start operating new galvanizing line in Jan-Mar

Nippon Steel, Japan’s largest integrated mill, plans to start commercial production on a new continuous hot-dip galvanizing line (CGL) at the Kimitsu area of its East Nippon Works in Chiba prefecture sometime during January-March next year, a company official confirmed on Thursday. The start-up, delayed for over six months, is to lift supplies of ultra-high-tensile steel sheets for Japan’s recovering automotive manufacturing sector.

The new CGL, called No.6 and with a design capacity of 33,000 tonnes/month, will be able to produce both hot-dipped galvanized steel (GI) sheets and hot-dipped galvannealed steel sheets (GA). Nippon Steel had initially planned to start operating the line during this year’s July-September quarter but postponed the start because of uncertainties facing the Japanese economy caused by the COVID-19 outbreak, the company official explained.

“But steel demand from the auto sector has been improving quickly so we decided to start commercial operations on the new CGL,” she noted. “The sheet will be mainly used for automobile structural parts, and samples have already been sent to automakers for testing,” she told Mysteel Global.

Once the new mill is operating smoothly, Nippon Steel plans to shut the No.4 CGL at the same works that has been operating since 1991. “We will be able to have efficient production with the new plant and have more scope to produce higher grade materials,” the spokeswoman said. The new CGL will be able to produce ultra-high-tensile steel sheets with 1.5 giga pascal (GPa) strength.

Presently, the company produces high-tensile steel sheet at Kimitsu – where the works currently hosts four CGLs – and at its Nagoya Works where three CGLs are working. However, Nippon Steel expects that demand of ultra-high-tensile steel sheets will continuing growing in future to meet the needs of auto makers trying to reduce vehicle body weight, according to the official. She refused to reveal the company’s total capacity for high-tensile, or ultra-high-tensile sheets, for reasons of commercial confidentiality. Hi-ten steel is a strategic product for Nippon Steel.

“There are very few mills in Japan that can produce 1.5 GPa ultra-high-tensile sheet so the capability will be an advantage for Nippon Steel,” according to an auto sheet trader in Tokyo.

The country’s auto companies are the largest customers of the Japanese steel producers, consuming about 25% of all steel sold domestically, he said, so the Japanese mills are always keen to identify new requirements for their auto-sector customers and are always trying to be ready. “The Japanese mills will continue investing in developing and producing more value-added products for the auto sector,” he added.

Earlier this month, Nippon Steel announced plans to invest an additional Yen 35 billion ($337.3 million) to expand its electrical sheet production capacity and improve quality at the Hirohata area of the Setouchi Works in western Japan in response to growing demand for electrical sheet for electric vehicles, as previously reported. The production capacity for both grain-oriented and non-grain-oriented sheets will be lifted by 40% when the facilities commission in April-September 2023, though Nippon Steel is keeping the actual tonnage a secret.

The company estimated that by fiscal 2025, global electrical sheet demand from the auto sector will have grown 14 times compared to that in Fiscal 2017, as reported.

Written by Yoko Manabe, yoko.manabe@mysteel.com

This article has been published under an article exchange agreement between Mysteel Global and SteelMint.

 

India: Jindal Stainless sales volume recovers to pre-Covid levels

Jindal Stainless Limited (JSL) has announced its financial results for the quarter ended September 30, 2020. The Company posted an 88% growth in Profit After Tax (PAT) at INR 98 crore in Q2FY21, as compared to corresponding period last year. EBITDA at INR 352 crore witnessed a rise of 11% against Q2FY20, while the net revenue stood at INR 3,156 crore in Q2FY21. With consistent focus on deleveraging, finance cost fell by 13% compared to Q2FY20 to INR 124 crore in Q2FY21.

 

  • Streamlining production, inventory, and supply chain management according to the emerging customer needs helped JSL post strong operational performance in Q2FY21. The total stainless steel melt production during Q2FY21 stood at 244,469 t, nearly equivalent to the pre-COVID level.

 

  • Improved operational performance in Q2FY21 was also supported by high demand from two-wheelers, decorative pipes & tubes, and Railways segments, which docked swift resumption to normalcy.

 

  • An exceptional response to JSL’s co-branded products in the pipe & tube segment last year induced the launch of second phase of the co-branding initiative as ‘Jindal Saathi 2.0’ during the second quarter. The second phase of this co-branding campaign covers even larger geography and remote markets.

 

  • On a half yearly basis, H1FY21 PAT stood at INR 11 crore while EBITDA was INR 430 crore. Sales volume was recorded at 319,164 t and net revenue of the company was INR 4,418 crore in H1FY21.

 

Commenting on the performance of the Company, Managing Director, JSL, Mr.Abhyuday Jindal, said, “A better than expected rebound in business sentiment, coupled with JSL’s agile response in manufacturing and supply chain adjustments, led to improved financial and operational performance in Ql. Aligned with market needs, we kept innovating and expanding our product basket to cater to customers in auto and railway segments. Going forward, we expect higher brand penetration in sub-urban markets through strategic partnerships via co-branded products.”

 

Iran: Steel production rise by 5% y-o-y during H1 Persian Year

The Iranian Mines and Mining Industries Development and Renovation Organization (IMIDRO) has recently published the production figures of Iran’s major steel producers for the current H1 Persian year (22 Mar-22 Sept’20). According to the report, the steel (semi-finished + finished) production of these mills has increased by 5% y-o-y to reach 18.5 mn t. The semi-finished steel production stood at 11.24 mn t (up by 7% y-o-y) while finished steel was recorded at 7.26 mn t (up by 3% y-o-y).

MSC remained the largest producer – Mobarakeh Steel Company (MSC), Khouzestan Steel Company (KSC), Esfahan Steel Company (ESCO), South Kaveh Steel (SKS), Chadormalu Mining and Industrial Company, Khorasan Steel Company, and Oxin Steel Company stood as the prominent steel producers.

Other key producers of finished products were Chaharmahal-Bakhtiari Automotive Sheet Company, Ahvaz Rolling and Pipe Manufacturing Company, and INSIG.

The IMIDRO report takes into account the export of heavyweight Iranian steel mills only. However, a comprehensive report detailing the performance of small-scale exporters will be published by the Iran Steel Producers Association (ISPA).

Figures in t

Source: Financial Tribune

 

Primetals receives final acceptance for two continuous galvanizing lines from HBIS Tangsteel

Primetals Technologies has received final acceptance certificate from HBIS Tangshan Iron & Steel (Tangsteel) for two continuous galvanizing lines installed at Tangshan plant in Hebei. The continuous galvanizing lines No.5 and No.6, having a capacity of producing 250,000 t & 400,000 t, pa respectively, will increase production capacity for high-strength, coated metal sheets which are mainly used by the automotive industry.