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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.
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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.
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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.
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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.
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Turkish metal industry capacity utilization dips in Dec |
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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.
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Egyptian industry calls for measures against Turkish steel
imports |
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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.
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