Chinese steel rebar and iron ore futures rebound but gains capped
Thursday, 24 Apr 2014
Reuters reported that Chinese steel futures rose for the first time in 7 sessions on a pick up in seasonal demand but gains were limited by chronic oversupply and slow manufacturing growth.
Benchmark October rebar futures on the Shanghai Futures Exchange had inched up 0.6 percent to CNY 3,251 per tonne by 0216 GMT. They had lost 4% in the previous six sessions.
The most active iron ore contract on the Dalian Commodity Exchange, for September delivery, had rebounded half a percent to CNY 779 by 0216 GMT.
Mr Qiu Yuecheng an analyst with steel trading platform Xiben New Line Company Limited in Shanghai said that “Rebar futures have fallen too much and the downside room is limited, but I don’t expect gains to be big as steel consuming sectors have lost steam, capping steel demand.”
A preliminary survey showed that China’s factory activity shrank for the fourth straight month in April, signalling economic weakness had stretched into the second quarter although the pace of decline eased helped by policy steps to arrest the slowdown.
The HSBC/Markit flash Purchasing Managers Index for April rose to 48.3 from March’s final reading of 48.0, still below the 50 line separating expansion from contraction.
Steel Technologies to acquire Stripco
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Thursday, 24 Apr 2014
Steel Technologies LLC announced its agreement to purchase Stripco LLC, Stripco Sales Company, LLC and Stripco Express Inc. Stripco is a premier value added steel processor with operations in Mishawaka, Indiana. The transaction has received governmental approval and is expected to close in early May.
Formed in 1984, Stripco has continued to expand its value added processes, which include pickling, slitting, cold rolling, annealing, oscillating and edging. Stripco was first in the US to install the Eco Pickling System, an environmentally friendly and superior quality pickle line that produces a clean, consistent surface. Stripco processes and ships over 100,000 tonnes with revenue exceeding USD 100 million annually.
Mr Mike Carroll president and CEO of Steel Technologies said that “Stripco has an excellent customer oriented reputation and proud history of innovation. They have continued to make strategic investments geared toward providing outstanding products and services to their customers. Mr Jack Hiler and his leadership group have built a great company, and Steel Technologies is excited to align with the Stripco team.”
Mr Jack Hiler CEO and owner of Stripco said that “Stripco’s goal has always been to increase value to customers by building lasting relationships and maintaining proper stewardship. We believe our acquisition by Steel Technologies will bring even more value to all of our partners.”
Source – Strategic Research Institute, Steel Guru
http://www.steelguru.com/international_news/Steel_Technologies_to_acquire_Stripco/337591.html
In an interview with Mr Deplano President & CEO of Danieli Centro Combustion
Danieli Centro Combustion India, part of Danieli Group, recently organized a customer interaction at The Leela hotel in Gurgaon, which was attended by over 100 persons.
Mr Nishith Sharma founder of Steel Guru caught up with Mr Stefano Deplano Director of Danieli Centro Combustion India and President & CEO of Danieli Centro Combustion International to understand their plans for the Indian steel sector.
Watch video
http://www.youtube.com/watch?v=v9LEvncXLyA&feature=em-share_video_user
Excerpts
Q – With growth rate dipping below 5% mark, Indian steel sector is not as rosy as it was few years ago. How do you look at Indian growth scenario and prospects for steel sector in India?
A – When Danieli Centro Combustion set up shop in India 6 years ago, the situation was quite different and the recession also impacted this particular market sector globally. What we see today in India is somewhat distinct but the situation is also different across the world. India is still however demonstrating great potential and showing a lot of promise. I travel all over the world and would say that the prospective in India is demonstrating solidity; the decline in development is much more critical in other parts of the world. Every region is growing gradually and even if results do not reflect our initial expectations, I am sure that this will turn around in the not too distant future.
Q- You still find India a shining star, albeit with lower growth of about 5%, among other emerging markets like Brazil, Russia, Turkey etc where the slowdown is visible amid their currency devaluation?
A – I fully agree. All over the world, everybody, including the more powerful countries, is reeling. USA to some extent is the first nation to re-emerge after this recession. We do however have reason to be optimistic. The world’s political situation is changing… Iran and USA are one example; these countries have now established new working relationships. Other facts also give us reason to be optimistic; we are very confident about the market in India; however, some issues still need to be addressed.
Q – With this strong conviction about Indian prospects, what are your plans for India?
A – We have already made moves towards becoming an all-inclusive player in the Indian market. Success offering just one product is difficult therefore a diversified product portfolio and field of activities are also required. A market leader is able to offer a number of different solutions to Clients to solve their problems. Therefore, we too need to be able to provide several alternative products and capabilities to our Clients in India. Danieli Centro Combustion is active in both reheating and heat treatments in India and in this country this sector is developing rapidly since added value is much more important than in past. We are not merely looking at volume – as always our main objective remains quality and this goes hand in hand with volume. Heat treatment means quality but with added value to the product. We are headed in this direction, offering not only batch heat treatment but also continuous annealing lines, galvanizing lines which are also so important. Aluminum is of major importance in an emerging growth market such as India. Broadening our products and solutions will ensure market leadership to Danieli Centro Combustion. We are aiming to reach the top in this sector. We are here to win.
Q – Would you share details of some of your past and undergoing projects in India?
A – We have a long list of extremely important Clients in India and it would not be fair to mention just one or two of them. Allow me to talk about some of our recent orders. In the beginning we were selling small furnaces 30 tonnes per hour, 50 TPH and perhaps for stainless steel etc., basically advanced technology for small plants. Now we not only deal with advanced technology but also larger furnace dimensions and sizes i.e. furnaces performing in excess of 200 tonnes per hour.
Q – There are large, medium and small players in Indian steel sector. Most of the modern technology is being adopted by large and medium players. There are thousand of smaller player with money and aspiration to improve their quality & cut cost. What kind of solutions you have for them?
A – We are part of Danieli & C. and our mother company clearly understands the importance of delivering also to smaller players. We have many solutions for SME’s operating across the globe including products specifically for mini mills, very reliable systems for low production levels, uncomplicated but reliable equipment that can also be used by Clients with less experience in running sophisticated plants. These also have low operation and maintenance costs.
Simple solutions have been identified, for example we are able to supply small and compact plants with low production costs. Plant design allows to roll material from the conti-caster to the down coiler and exclude intermediate solutions such as combustion reheating furnaces to heat the feedstock.
Q – The small steel sector is quite defragmented in India. How do you plan to reach them?
A – 6 years ago, we were already talking about our Company’s capabilities but had nothing to show to the market in India. Our equipment was in other far away countries. Now, with numerous plants in India it is easy for us to demonstrate to Clients how our Plants function and what we can do for their businesses.
The Danieli Group now counts 1100 employees in India alone, 70 people are employed by DCCI (located in Pune) and devoted to the supply of reheating and heat treatment furnaces and we expect to exceed 100 employees there very soon. Our Company in India is structured to offer local Clients innovative solutions in design and technology by working in partnership with them to solve their problems. This also enhances the Company’s credentials in areas such as innovation, customer satisfaction and quality services.
We have heard comments from many who are surprised that we have such an array of different technologies. Our intention is not only to make everybody aware that Danieli is present in India but to also let them know about the things we can do
http://www.steelguru.com/interview/detail/428/India_a_Land_of_Promises.html