Khartsizsk tube works increases output

Ukraine-based Khartsizsk tube works has increased output of steel tubes, used mostly to build pipelines, to 523,153 tons in 2009 from 387,746 in 2008. The plant reduced pipe production by 23.8 percent to 387,746 tons in 2008 from 508,945 in 2007.
The Khartsizsk plant is majority-owned by System Capital Management, one of the businesses owned by Ukrainian billionaire Rinat Akhmetov. Meanwhile, Azovstal said it had reduced raw steel production by 15.7 percent to 4.643 million tons in 2009 from 5.510 million in 2008. The company said in a statement it had also cut pig iron output by 12.9 percent to 4.016 million last year from 4.611 million a year earlier, while rolled steel production fell by 15.2 percent to 4.288 million from 5.058 million. In December 2009, raw steel production totaled 466,700 tons against 456,200 in November. Pig iron output rose by 2.8 percent to 409,100 tons last month from 397,900 in November.
Rolled steel production fell by 0.2 percent to 426,100 tons in December from 426,900 in November. In 2008 the company cut steel output by 12.9 percent against 2007 to 5.510 million tons against 6.327 million a year earlier. Pig iron production fell to 4.611 million tons from 5.443 million, while rolled steel output shrank to 5.058 million tons from 5.613 million. The global financial crisis and economic downturn has left Ukrainian steel makers facing reduced demand across the world and many producers have been forced to cut steel output. Azovstal is based in southeast Ukraine on the coast of the Sea of Azov.

   
Ukraine ArcelorMittal cuts steel output in 2009

Ukraine's biggest steel mill Kryvorizhstal, owned by ArcelorMittal, reduced raw steel production in 2009 to 5.054 million tons from 6.233 million in 2008, said a report.
The rolled steel production fell to 4.478 million tons from 5.406 million, while pig iron output fell to 4.418 million from 5.632 million. Ukraine's steel production fell to about 30 million tons last year from 37.1 million in 2008 and 42.8 million in 2007.
The global financial crisis and economic downturn has left Ukrainian steel makers facing reduced demand across the world and many producers have been forced to cut steel output.

   
Saudi Arabia re-imposes customs duty on steel imports

Saudi Arabia re imposed 5 percent customs duty on steel rebars & cement imports except those coming from GCC countries after a temporary exemption that lasted for 2 years. This decision was circulated to all Saudi border ports for implementation as of the beginning of 2010.
Saudi Arabia had prior to that approved a cut in customs duties on steel since April 2004 from 20 percent to 5 percent. GCC had also approved to duty exemptions on steel & cement imports two years ago, hence becoming totally duty free imports, in order to tackle the crisis of tight supply that prevailed in the market then, restraining the upward trend of building materials prices that reached record levels.
Other GCC countries are expected to follow the Saudi example of imposing customs duties of 5 percent. According to the decision of the GCC Financial & Economic Cooperation Committee made at the 80th meeting in Muscat, Oman at the end of May 2009 had called for a hold on any further exemptions on rebar, bricks & cement imports in all GCC countries and for the application of protectionism as January 1st 2010, as the reasons for calling such exemptions are no longer existent, as well as the expiration of the period during which countries used to afford duties on imported rebar and cement.

   
Iran, Middle East's top producer of wide steel plates

Iran's Khuzestan Oxin Steel Company has manufactured the first 4.5-meter wide and 12-millimeter thick steel plate which is second to none in the Middle East.
According to a report, the company, which is the largest manufacturer of wide steel plates in the region and one of the ten holding this technology in the world, set a new record by manufacturing this product.
The wide plates made in this factory are unique in quality are used in making huge pipes, ships and steel tanks. Khuzestan Oxin Steel Company uses state-of-the-art mechanical and automatic machinery for its production. The main duty of the company is to produce various kinds of steel plates with different thicknesses and high strengths.
Operations in the factory include direct reduction, melting and wide slab casting and producing wide plates.
Among the 20 largest steel producers of the world only Iran, China and India have not been affected by the global economic crisis and Iran ranks first in terms of growth.
Citing statistics released by the World Steel Association, the report added that the meltdown has caused steel production in 17 countries to be reduced. Crude steel production in the nine month period ending December 21 reached 7.8 million tons, showing a 4 percent growth compared to the same period the year before. The report added that the total exports of crude steel and steel products in this period hit 825,583 tons worth $358 million, which is 71 percent more in terms of weight compared to the year before.

  Turkish metal industry capacity utilization dips in Dec
 

The capacity utilization rate in Turkey's manufacture of basic metals in December was 70.7percent mainly due to lack of demand in the local and export markets compared to a capacity utilization rate of 65.2percent in December 2008 and 71.7percent in November 2009, said statistics released by the Turkish Statistical Institute.
Meanwhile, the capacity utilization rate in the country's manufacture of fabricated metal products in December was 69.2 percent up from 64.1percent recorded in December 2008 and up from 66.3 percent in November 2009. In December 2009, the output of the domestic basic metal industry increased by 1.7 percent raw material prices in the industry were up 0.6 percent while sale prices decreased by 0.9 percent all compared to the previous month.
As regards the manufacture of fabricated metal products, in December the output slightly increased by 0.9 percent raw material prices increased by 0.6 percent and sale prices remained unchanged all compared to November 2009.
On the other hand, the output in the manufacture of basic metals in Turkey is forecast to decrease by 0.1percent in January while sale prices are expected to decline by 0.1percent in the industry in the same month, both compared to December. Raw material prices for the manufacture of basic metals are foreseen to increase by 0.7percent MoM in January.

  Egyptian industry calls for measures against Turkish steel imports
 

The Federation of Egyptian Industries submitted a report to Minister of Trade and Industry Rachid Mohamed Rachid saying that local steel manufacturers lost 38 percent of their market share this year.
The report attributed the decrease in sales to the 2.5 million tons of steel imported from Turkey. It said that the introduction of Turkish steel increased supply to 1.5 million tons, 5 times the usual inventory rate. This caused some manufacturers to sell at a loss, while others had to close factories. According to the report, these imports threaten current and future investment projects in the steel industry, which are worth some EGP 40 billion. They also caused the government lose USD 1.2 billion in hard currency sales.
The report said that local steel production covers market demand and allows for a reserve of 1 million tons every year. This balance has been shattered by foreign countries flooding the Egyptian market, which they are doing as a result of the global financial crisis.
The Federation of Egyptian Industries report said that other countries including Turkey impose customs on steel imports to protect local industries while Egypt is not taking any similar protective measures. Local steel prices decreased 48 percent in November 2008 in anticipation of the first batch of imported steel arriving a month later. With an annual production capacity of 21 million tons and a local demand of only 6 million tons, Turkey has 26percent of the global steel export market, making it the world's largest steel exporter.
Mohamed el Marakbi steel manufacturer said that Rachid has promised to consider immediate protective measures against steel imports if it is proven that they are the reason behind the decline in local sales.