Renco Group: RG Steel to become fourth-largest flat rolled steel producer in US

Fri, Mar04, 20100

US-based private investment holding company Renco Group has announced that, following the acquisition of three steel companies currently owned by Russian steelmaker Severstal estimated at $1.2 billion, its newly-formed subsidiary RG Steel will become the fourth-largest flat rolled steel producer in the US.

Accordingly, in addition to Severstal's Sparrows Point, Warren and Wheeling facilities, RG Steel will acquire a 50 percent ownership interest in Mountain State Carbon LLC, a cokemaking facility in Follansbee, West Virginia, and Ohio Coatings Company, based in Yorkville, Ohio. RG Steel will receive one half of the coke output from Mountain State Carbon and will continue its long-standing relationship with Ohio Coatings Company. The purchase of these assets will provide RG Steel with approximately 7.5 million mt of annualized steelmaking capacity.

"The formation of RG Steel will create a dynamic, service-oriented company with strategically located facilities," Renco Group's president Ari Rennert stated.

RG Steel will be headquartered at Sparrows Point, Maryland. Completion of the sale is expected in March 2011, pending regulatory approval.

Russia’s Ashinskiy sees 2.8 percent drop in Jan-Feb steel output

Friday, Mar04, 2011

According to its data issued for the first two months of the current year, Russian steel producer Ashinskiy Metallurgical Works (Ashinskiy) registered a 2.8 percent drop year on year in its steel output to 110,000 mt, including 108,600 mt of slabs - down 0.8 percent year on year.

In January-February, Ashinskiy produced 99,000 mt of rolled steel products - down one percent compared to the same period last year.

In addition, during the period in question Ashinskiy's deliveries of steel plates dropped by 1.1 percent year on year to 91,600 mt. Of this figure, 79,600 mt of plates were delivered to the Russian domestic market - up 20.9 percent year on year, about 4,700 mt were exported to non-CIS countries - down 73.4 percent, and 2,200 mt were delivered to CIS countries - up 23.2 percent, all compared to January-February 2010.

Severstal announces USD 2 billion investment program for 2011

Tuesday, 22 Feb 2011

OAO Severstal one of the world leading integrated steel and mining companies announces a target USD 2 billion capital investment program for the current financial year. Severstal will continue to improve operating efficiency, modernize its operational facilities and ensure that the Company maintains industry leading standards of health and safety.

In 2011 the total amount of investment at Severstal Russian Steel will be approximately USD 940 million around a 73% increase on 2010 and will include the following key projects: the continued construction of a mini-mill in Balakovo in the Saratov Region, the renovation of the No 7 coke oven battery, the modernization of the No 5 blast furnace and the construction of a second polymer coating line in Cherepovets and the large-scale IT projects.

In 2011 the total amount of investment at Severstal Resources will be approximately USD 650 million around a 53% increase on 2010 and will include a project to modernize production equipment across the division’s iron ore mills and coalmines, the completion of a thermoelectric power station burning coalmine methane in Vorkuta, an exploration of the Putu iron ore deposit in Liberia, the continued development of the division’s gold mining assets and a coalmine at PBS Coals.

In 2011 the total amount of investment at Severstal North America will be approximately USD 465 million around a 69% increase over 2010, and will include the construction and commissioning and start-up of the 2nd Electric Arc Furnace, Continuous Caster, Tunnel Furnace, Pickle line and the 2nd Hot Dip Galvanizing line at Severstal Columbus, new Cold Rolling Complex and Hot Dip Galvanizing line at Severstal Dearborn.

Overall, the level of CAPEX represents an approximately 48% increase over the level for 2010.

Mr Alexei Kulichenko CFO of Severstal commented that “In 2011 Severstal will continue to make investments across its businesses in order to enhance our position as a market leader in the production of high added value products, improve our operational efficiency and reduce costs. In Russia and CIS, steel use is estimated to increase by approximately 8% in 2011.”

China to import up to 20 million mt per year of Russian coal

Monday, 14 February 2011

Russian Energy Minister Sergei Shmatko has stated that China has agreed to raise the maximum limit for the volume of coal it imports from Russia to 20 million mt per year.

Minister Shmatko said that Russia and China will soon sign the relevant agreement regarding cooperation in the coal sector.

In 2010, Russia exported more than 10 million mt of coal to China, principally through its Far Eastern ports.
(sourced:steelorbis)

Tags: coking coal , raw mat , China , Russia , CIS , East Asia and Pacific , Far East , imp/exp statistics , Coking coal

Metinvest targets annual steel output of 25 million mt in long term

Tuesday, 08 February 2011
Ukraine's largest mining and steel group Metinvest has increased its investments for 2011 by 2.4 times year on year to $1.18 billion in order to improve its steel production efficiency and to strengthen its vertical integration with the aim of processing in-house as much available raw materials as possible into steel, said Metinvest's CEO Igor Syry. He added that during the next five years Metinvest plans to invest around $6 billion for the stated purpose, targeting a long-term output goal of 25 million mt of steel per year, which will take it to around fifth place among the world's major steelmakers.
Metinvest plans to expand its steelmaking capacities both by mergers and acquisitions, and by pursuing organic growth. "We will also strengthen our footprint in our strategic markets - in Ukraine and the CIS, the EU, the Middle East and North Africa. Our presence will grow by means of product portfolio diversification, reduction of the share of semi-finished products down to 10 percent in favor of such products as hot and cold rolled coils, coated coils and heavy sections, as well as through clear customer segmentation and development of long-term mutually beneficial relationships with key accounts," Mr. Syry said.
As regards its technological strategy, Metinvest plans to introduce pulverized coal injection (PCI) technology. Its high-grade coking coal needs per annum will increase to 13 million mt, and its coke needs will rise to 8 million mt. "The share of high-quality coking coal in our blast furnace charge will need to increase, though, unfortunately, there is a lack of such coals in Ukraine. Additional volumes can be imported, and naturally, we will be sourcing them from United Coal (UCC), our own coal mining company in the USA. We have approved capacity expansion projects at the Affinity and Roaring Creek mines, and we are planning to increase supplies," Mr. Syry stated.
In addition, Metinvest plans the implementation of energy efficiency projects, the positive effect of which, according to preliminary estimations, will amount to around $1 billion per year.
Tags: hrc , crude steel , coking coal , crc , raw mat , semis , flats , Ukraine , CIS , steelmaking , production , investments , Metinvest(sourced:steel orbis)

Ukraine issues 2010 coke import and export data

Monday, 07 February 2011 11:54:42 (GMT+2)
In 2010, Ukraine's coke exports increased by 59 percent to 1.466 million mt, valued at $444.5 million, while its coke imports went up by 22.4 percent to 305,510 mt, valued at $93.8 million, both compared to 2009. In December 2010, coke exports from Ukraine decresed by 39.5 percent month on month, but increased by 12 percent year on year to 122,980 mt, valued at $38 million. Of the country's total coke exports in December, deliveries included 26,010 mt to India, 25,750 mt to Slovakia, 23,280 mt to Iran, 11,460 mt to Turkey, 9,370 mt to Romania, 8,730 mt to Georgia, and 7,010 mt to Macedonia. On the other hand, in December 2010 Ukraine's coke import volume increased by 12 percent month on month, but decreased by 5.3 percent year on year, totaling 37,720 mt at a value of $12.2 million. Ukraine's coke import volume in December included 31,920 mt from Kazakhstan, 3,560 mt from Poland, and 2,230 mt from Russia.
Tags: raw mat, Ukraine , CIS , import /export statistics