Japan’s top steelmaker has reported a 33 percent decline in profit for June quarter and predicted a 56 percent plunge in profit for FY20.
The company sees a gloomy scenario has highlighted in its presentations and interaction with investors.
“While promoting further recovery of manufacturing capability, we intend to make a shift to “profitability oriented production” that put more emphasis on economic rationality in production volume in line with order intake, in accordance with demand slowdown in some of domestic industrial sectors & margin deterioration in exports for spot markets,” the company said.
“Margin Shrink brought by high raw material prices and low steel product prices,”
“Iron ore prices remained at high level due to growing pig iron production in China. The impacts from Vale’s accident & RioTinto’s underproduction will be subdued and speculative transactions will recede, but in terms of the current low level of inventory, iron ore prices remain high for now,”
Robust infrastructure investments have boosted demand in long steel products and resulted in the record-high crude steel production. The EAF’s production volume has grew as it substitutes the removed illegal induction furnaces production.
Due to the poor scrap supply chain in China, the demand of pig iron for the EAFs has increased and pig iron production also reached the record-high level.
Iron ore inventory remains low. The long products’ SD situation stays firm, while flat products market bear a weak tone. The polarization between long & flat prices is anticipated to expand as infrastructure investments gain more momentum.
Strategy to fights slowdown
Build lean & optimal production framework
هذه القصة مأخوذة من طبعة September 2019 من Steel Insights.
ابدأ النسخة التجريبية المجانية من Magzter GOLD لمدة 7 أيام للوصول إلى آلاف القصص المتميزة المنسقة وأكثر من 9,000 مجلة وصحيفة.
بالفعل مشترك ? تسجيل الدخول
هذه القصة مأخوذة من طبعة September 2019 من Steel Insights.
ابدأ النسخة التجريبية المجانية من Magzter GOLD لمدة 7 أيام للوصول إلى آلاف القصص المتميزة المنسقة وأكثر من 9,000 مجلة وصحيفة.
بالفعل مشترك? تسجيل الدخول
Steel's Net Zero mission
The country’s commitment to achieving Net Zero within a targeted timeframe will now propel its steel sector towards a sustainable future in line with global trends.
Fuel Price Hike, Supply Chain Disruption Hurt Festive Sales
Supply chain disruptions and fuel price hikes have hurt festive sales in a big way as most auto majors posted decline in sales in October.
Seaborne coking coal offers remain range-bound
Seaborne coking coal offers moved in a narrow range in October amid global supply tightness and healthy spot demand.
Global crude steel output down 8% in September
China manufactured 74 mt in September, fall of 21% y-o-y while India’s production went up by 7% to 10 mt.
MOIL embarks on expansion projects
“Even though our country is blessed with manganese ore reserves, we import 50% of the domestic requirement. We have to lower our import dependence and save precious foreign exchange.” Ram Chandra Prasad Singh, Steel Minister
Iron ore handled by major ports down 17% in H1
The 12 major Indian ports handled 27 mt of iron-ore during H1 of 2021, down by 17% from 33 mt recorded for the corresponding period of previous year.
Shrinking China output to boost India exports
“In the third quarter of 2021, the company actively responded to the pressure from external policies, such as production curtailment and dual control system on energy consumption and intensity, as well as coal resource shortage and surging prices.” Baoshan Iron and Steel Co Ltd
Indian Railways' iron-ore handling up 25% in H1
Indian Railways in April-September of 2021 (H1) transported 84 mt of iron ore, up by 25% over 67 mt during April-September 2020.
September crude steel production up 7.2% y-o-y
India’s crude steel production in September 2021 grew 7.2 percent to 9.547 million tons (mt) over September 2020 but was down by 3.2 percent from August 2021 output, provisional steel ministry data showed.
“Five enablers: way forward to sustainable cleaner steel”
Right and scalable technology, appropriate policy guidance by government, access to finance to fund transition, willingness of customers to pay for cleaner products and infrastructure for use of new technologies are the need of the hour for the sustainable and cleaner steel industry, according to Madhulika Sharma, Chief Corporate Sustainability, Tata Steel.