Day: 2 December 2020

The World Trade Organization has ruled that South Korea’s anti-dumping duties on stainless steel bar imports from Japan were inconsistent with the WTO’s anti-dumping agreement.

“We conclude that, to the extent that the measures at issue are inconsistent with certain provisions of the Anti-Dumping Agreement, they have nullified or impaired benefits accruing to Japan under that Agreement,” the WTO said Nov. 30. “…we recommend that Korea bring its measure into conformity with its obligations under the Anti-Dumping Agreement.”

The WTO’s decision comes after Japan, in June 2018, lodged a request with the WTO over the duties that were initially imposed in July 30, 2004, and were extended three times following sunset reviews. The duties were set at 15.39% on stainless bars imported from Japan from June 2, 2017.

In January 2020, South Korea started a fourth sunset review of the duties. As such, the current extension will continue until South Korea “decides whether or not another extension measure should be imposed on the product in question based on the fourth sunset review,” the Japanese Ministry of Economy, Trade and Industry said Dec. 1.

METI data showed that exports of stainless steel bars from Japan to South Korea fell to 3,791 mt in 2019 from 9,269 mt in 2002.

The WTO’s agreement sets the rules for allowing members to take action against dumping in order to defend its domestic industries.

— Clement Choo

Russian steelmaker and miner Severstal has entered the market of special profiles for rail transport, the company says.

The enterprise estimates the potential for sales in Russia to be 64,000 tonnes/year, which corresponds to approximately 40% of the market, Kallanish notes.

Severstal has begun the production of this product and has prepared for dispatch another pilot batch of special profiles to a train-building plant in Russia.

Hot-rolled steel for freight train bodies is produced at mills 2000, 2800 and 5000 at its Cherepovets steelworks. In addition to hot rolled sheet, the company supplies train builders with shaped tubular products.

The product portfolio will now be supplemented with a special profile made of hot and cold rolled steel, which is used as a load-bearing element for stiffening train body structures.

“Severstal has a historical presence in the railway engineering market; we are interested in expanding our product line and since 2020 our company has been the largest supplier of flat products,” says director for relations with machine-building Georgy Argunov. “From the beginning of 2021 we will be ready to participate in tenders and carry out industrial supplies.”

Severstal’s third-quarter crude steel output increased by 3% on-quarter to 2.9 million tonnes (see Kallanish passim).

SMS group believes that 2021 will be another hard year marked by the Covid-19 pandemic, but is optimistic that key performance figures will rebound as of 2022.

The family-owned German plant-builder normally reveals its annual figures in the summer, but this year postponed its press conference to the end of November. In 2019, the company still saw its essential key figures increasing, with revenue up 4.6% on-year to €2.9 billion ($3.5 billion), order intake up 2.2% to €3.2 billion, and pre-tax profit up 127% to €126 million. The order book at the end of the year stood at €3.85 billion, 6.3% higher than in late 2018.

In the current full-year, SMS expects order intake to drop by one third, chief executive Burkhard Dahmen said at a conference call attended by Kallanish. Apart from a drop of investment spending among mills, the pandemic has caused other problems. Chief operating officer Michael Rzepczyk noted that “…the actual construction site remains our main working place, and here we had to cope with massive hygienic regulations, and also with employees infected with the virus.”

He continued: “Thanks to augmented reality and video conferences that seemed to last all year through,” the firm managed to finished projects despite the hurdles. In fact, this year has seen the number of employees in the SMS Digital division more than treble, according to digitalisation officer Katja Windt. She predicted that services and maintenance, powered by digitalisation, will make up 50% of the company’s revenue by 2030.

SMS says it will continue to supplement its organic growth with acquisitions of suitable start-ups or established specialists.  This year, it acquired shares in two Brazil-based companies, Viridis and Vetta, both based in Belo Horizote, to create a competency centre for industrial digitalisation. In Italy, with the acquisition of OMAV and Hydromec, SMS expanded its product range in the extrusion plant and forging press sectors.

The new 50:50 joint venture between ArcelorMittal Italia and Invitalia will invest €2.1 billion ($2.5 billion) into the relaunch of the steelmaker formerly known as Ilva, said Invitalia chief executive Domenico Arcuri during a meeting with unions. He also promised full employment by 2025.

Despite the initial 30 November deadline being postponed, Arcuri said the agreement is almost ready. The parties are compiling a memorandum of understanding that describes the main points of the agreement. The deal is now expected to be signed on 11 December (see Kallanish 1 December).

The objective of the new industrial plan is to gradually reach 8 million tonnes/year of crude output starting from a level of 5mt next year. Part of the new plan will be a gradual decarbonisation, two electric arc furnaces and a direct reduced iron plant, together with the reconstruction of blast furnace no.5.

The longer-term target is to create Europe’s largest plant for green steel, union sources who took part in the meeting tell Kallanish. While the use of a furlough scheme will continue this and next year, by 2025 Arcuri foresees full employment.

The Italian state and ArcelorMittal Italia will enter into a 50:50 partnership until 2022 when the government will become the majority stakeholder at 60%. From now until 2022 the state will inject €800 million into the new company.

The managing board composed of six stakeholders should see equal participation from the two parties, with the president appointed by the state and the chief executive by ArcelorMittal. This year Taranto’s output is not expected to surpass 3mt.

It has been in the air for a few weeks, and now it is official. The ninth edition of Made in Steel has been postponed following the numerous requests from exhibitors and trade operators and given the continuation of the Covid-19 pandemic.
The new dates are 26, 27, and 28 May 2021, at fieramilano Rho, Halls 22 and 24.

2020 has been a “suspended” year, with strong economic, political and social uncertainty affecting all sectors worldwide. Because of this scenario, also the leading international events in the steel industry have had to be cancelled or postponed. That’s why Made in Steel 2021 will be more important than ever, a unique opportunity for Italian and European steel operators to meet again and resume the relationships that had been disrupted.

“Let’s not waste the opportunities of this great global crisis that can bring the entire steel industry to a new beginning. People are social animals. They need contacts. They need to see each other and spend time together. Made in Steel is important for the operators of the steel supply chain, to meet, exchange ideas, and review business models. It is the beginning of the steel rebirth” – Emanuele Morandi, President and CEO of Made in Steel.

Made in Steel 2021 will be held in conjunction with Lamiera, the international exhibition of sheet metal forming, cutting, and working machines, automation, and related technologies, promoted by UCIMU-SISTEMI PER PRODURRE.