Which way? Metals
- Thread starter themickey
- Start date
https://www.afr.com/companies/infra...g-in-on-bluescope-s-ohio-turf-20210921-p58tdr
Big US rival cutting in on BlueScope’s Ohio turf
Simon Evans Senior Reporter Sep 21, 2021
BlueScope chief executive Mark Vassella says there is no need for panic about the potential for the group’s most profitable business, theNorth Star steel mill in Ohio,to be undermined by a new $3 billion plant planned by United States steel giant Nucor in the region.
High steel prices and strong demand prompted the announcement by Nucor overnight in the United States for a new steel plant, to be built in either Ohio, West Virginia or Pennsylvania. Nucor is listed on the New York Stock Exchange and has a sharemarket capitalisation of $US29 billion ($39.9 billion).
US president Joe Biden wants half of all cars built in the US to be electric by 2030. BlueScope CEO Mark Vassella says the big investments planned in the auto industry are part of what’s driving new steel plants in the US. AP
Nucor’s chief executive, Leo Topalian, said the company wanted to double theoutput from its US business to the automotive industry. BlueScope’s North Star mill, which is in thefinal stages of a $1 billion-plus expansion, sends 50 per cent of its output to the automotive industry.
Mr Vassella said all US steel companies had stronger balance sheets now than a year ago, with steel prices almost four times as high as they were in August 2020.
But he played down the prospect of an oversupply emerging, and noted Nucor had not finalised the location of its new mill.
Mr Biden has set a target of 50 per cent of all American car sales to be electric vehicles by 2030.
Nucor operates five other steel mills in the US. It plans to build a new 3 million-tonnes-a-year electric arc furnace, which uses scrap steel as feedstock, and aims to begin steel production by 2024.
BlueScope’s chief executive of its North American business, Pat Finan, told an investor briefing on Tuesday that steel operators in the US had become more disciplined and there would not be a “flood of new steel” coming onto the market because the mills being built were electric arc furnaces and not using traditional blast furnaces.
No slowdown for automotive industry
Mr Finan said the new breed of mill could easily “turn down capacity” if the supply and demand economics became out of kilter.
He said there had been no slowdown in despatch of steel from the North Star mill for the automotive industry because of aglobal semiconductor shortage,which has caused many carmakers to cut back on production. “It is clear that the auto stoppages are increasing,” Mr Finan said.
It had been a surprise that steel orders by carmakers had not been affected yet, he said.
The North Star mill is about 90 minutes from the automotive production hub of Detroit.
North Star makes steel used in automotive chassis, frameworks and clutch plates.
BlueScope announced its biggest full-year profit in 19 years in August, thanks to booming steel prices and margins. The North Star mill lifted earnings before interest and tax by 257 per cent to $677 million in 2020-21. The Australian BlueScope operations lifted EBIT by 121 per cent to $674 million.
Mr Finan reaffirmed a cost blowout of between 5 per cent and 10 per cent for the North Star expansion from the original projected cost of $US700 million because of rising inflation and bringing forward some parts of the project.
Big US rival cutting in on BlueScope’s Ohio turf
Simon Evans Senior Reporter Sep 21, 2021
BlueScope chief executive Mark Vassella says there is no need for panic about the potential for the group’s most profitable business, theNorth Star steel mill in Ohio,to be undermined by a new $3 billion plant planned by United States steel giant Nucor in the region.
High steel prices and strong demand prompted the announcement by Nucor overnight in the United States for a new steel plant, to be built in either Ohio, West Virginia or Pennsylvania. Nucor is listed on the New York Stock Exchange and has a sharemarket capitalisation of $US29 billion ($39.9 billion).
US president Joe Biden wants half of all cars built in the US to be electric by 2030. BlueScope CEO Mark Vassella says the big investments planned in the auto industry are part of what’s driving new steel plants in the US. AP
Nucor’s chief executive, Leo Topalian, said the company wanted to double theoutput from its US business to the automotive industry. BlueScope’s North Star mill, which is in thefinal stages of a $1 billion-plus expansion, sends 50 per cent of its output to the automotive industry.
Mr Vassella said all US steel companies had stronger balance sheets now than a year ago, with steel prices almost four times as high as they were in August 2020.
But he played down the prospect of an oversupply emerging, and noted Nucor had not finalised the location of its new mill.
Mr Biden has set a target of 50 per cent of all American car sales to be electric vehicles by 2030.
Nucor operates five other steel mills in the US. It plans to build a new 3 million-tonnes-a-year electric arc furnace, which uses scrap steel as feedstock, and aims to begin steel production by 2024.
BlueScope’s chief executive of its North American business, Pat Finan, told an investor briefing on Tuesday that steel operators in the US had become more disciplined and there would not be a “flood of new steel” coming onto the market because the mills being built were electric arc furnaces and not using traditional blast furnaces.
No slowdown for automotive industry
Mr Finan said the new breed of mill could easily “turn down capacity” if the supply and demand economics became out of kilter.
He said there had been no slowdown in despatch of steel from the North Star mill for the automotive industry because of aglobal semiconductor shortage,which has caused many carmakers to cut back on production. “It is clear that the auto stoppages are increasing,” Mr Finan said.
It had been a surprise that steel orders by carmakers had not been affected yet, he said.
The North Star mill is about 90 minutes from the automotive production hub of Detroit.
North Star makes steel used in automotive chassis, frameworks and clutch plates.
BlueScope announced its biggest full-year profit in 19 years in August, thanks to booming steel prices and margins. The North Star mill lifted earnings before interest and tax by 257 per cent to $677 million in 2020-21. The Australian BlueScope operations lifted EBIT by 121 per cent to $674 million.
Mr Finan reaffirmed a cost blowout of between 5 per cent and 10 per cent for the North Star expansion from the original projected cost of $US700 million because of rising inflation and bringing forward some parts of the project.
Iron ore storms past $US100 as China soothes Evergrande concerns
By Krystal Chia September 23, 2021
https://www.smh.com.au/business/mar...thes-evergrande-concerns-20210923-p58u0w.html
Iron ore’s roller-coaster ride in 2021 shows no signs of easing, with prices ending an unprecedented slump to move sharply higher as investors monitor simmering debt troubles at China Evergrande Group.
The developer’s onshore property unit said it reached an agreement with yuan bondholders on an interest payment, offering some relief after fears over Evergrande’s financial stability sparked a global flight from risk. China’s central bank also boosted short-term cash into the financial system, helping steady commodity markets.
Iron ore prices climbed more than 16 per cent, surging back above $US100 a tonne from their lowest close in 16 months. Events around Evergrande spooked the market earlier in the week and the steelmaking material was already oversold, said Atilla Widnell, managing director of Navigate Commodities.
By Krystal Chia September 23, 2021
https://www.smh.com.au/business/mar...thes-evergrande-concerns-20210923-p58u0w.html
Iron ore’s roller-coaster ride in 2021 shows no signs of easing, with prices ending an unprecedented slump to move sharply higher as investors monitor simmering debt troubles at China Evergrande Group.
The developer’s onshore property unit said it reached an agreement with yuan bondholders on an interest payment, offering some relief after fears over Evergrande’s financial stability sparked a global flight from risk. China’s central bank also boosted short-term cash into the financial system, helping steady commodity markets.
Iron ore prices climbed more than 16 per cent, surging back above $US100 a tonne from their lowest close in 16 months. Events around Evergrande spooked the market earlier in the week and the steelmaking material was already oversold, said Atilla Widnell, managing director of Navigate Commodities.
https://www.bloomberg.com/news/arti...-plan-to-restructure-assets?srnd=premium-asia
China to Form Two Rare Earth Giants to Strengthen Pricing Power
Bloomberg News 24 September 2021
The government is aiming to eventually consolidate all its rare earth miners and processors into the two huge firms, one in the north and one in the south, the people said, asking not to be identified discussing a private matter.
The one in southern China will oversee medium-to-heavy rare earths, and the other in the north will control all light rare earths, the people said. It’s unclear when the merger will be completed.
Beijing has been restructuring the industry for years into six large state-controlled groups. By consolidating, it hopes to maintain its dominance in the production of the strategic metals, of which it controls 70%, as the U.S. and Europe look to develop their own production and supply chains and diversify away from China.
Several state-owned miners, including Aluminum Corp. of China, will restructure their assets, China Minmetals Corp.’s rare earth unit said in a filing to the Shenzhen Stock Exchange on Thursday evening. That’s the first step toward the consolidation into two giant entities, the people said.
The State-owned Assets Supervision and Administration Commission of the State Council, which oversees some of the miners, didn’t respond to a fax seeking comment. Questions faxed to the Ministry of Industry and Information Technology, which is in charge of rare earths management, also went unanswered.
While details of the first stage in the restructure are scant, the parties involved own stakes in four out of the six dominant rare-earths producers. The importance of the materials, ubiquitous across a range of applications from consumer goods to military gear, was thrust into the spotlight in 2019 as China mulled whether to use its position as the world’s dominant supplier as a counter in its trade war with Washington.
Beijing’s decision almost 30 years ago to make rare earths a strategic material and ban foreigners from mining them helped pave the way for China to elbow aside the U.S. as the world’s leading producer. The minerals’ biggest usage is in permanent magnets, which include the NdFeB variety, found in everything from phones to computers to cars.
Demand for rare earths -- a broad group of 17 elements -- is rising, driven by growing need for permanent magnets. Prices of neodymium and praseodymium, -- or NdPr, two of the 17 rare earth elements that are used in NdFeB magnets -- surged to the highest in a decade this summer.
China to Form Two Rare Earth Giants to Strengthen Pricing Power
Bloomberg News 24 September 2021
- Beijing wants to keep dominance of critically important metals
- Strategic resources were in spotlight during U.S. trade war
The government is aiming to eventually consolidate all its rare earth miners and processors into the two huge firms, one in the north and one in the south, the people said, asking not to be identified discussing a private matter.
The one in southern China will oversee medium-to-heavy rare earths, and the other in the north will control all light rare earths, the people said. It’s unclear when the merger will be completed.
Beijing has been restructuring the industry for years into six large state-controlled groups. By consolidating, it hopes to maintain its dominance in the production of the strategic metals, of which it controls 70%, as the U.S. and Europe look to develop their own production and supply chains and diversify away from China.
Several state-owned miners, including Aluminum Corp. of China, will restructure their assets, China Minmetals Corp.’s rare earth unit said in a filing to the Shenzhen Stock Exchange on Thursday evening. That’s the first step toward the consolidation into two giant entities, the people said.
The State-owned Assets Supervision and Administration Commission of the State Council, which oversees some of the miners, didn’t respond to a fax seeking comment. Questions faxed to the Ministry of Industry and Information Technology, which is in charge of rare earths management, also went unanswered.
While details of the first stage in the restructure are scant, the parties involved own stakes in four out of the six dominant rare-earths producers. The importance of the materials, ubiquitous across a range of applications from consumer goods to military gear, was thrust into the spotlight in 2019 as China mulled whether to use its position as the world’s dominant supplier as a counter in its trade war with Washington.
Beijing’s decision almost 30 years ago to make rare earths a strategic material and ban foreigners from mining them helped pave the way for China to elbow aside the U.S. as the world’s leading producer. The minerals’ biggest usage is in permanent magnets, which include the NdFeB variety, found in everything from phones to computers to cars.
Demand for rare earths -- a broad group of 17 elements -- is rising, driven by growing need for permanent magnets. Prices of neodymium and praseodymium, -- or NdPr, two of the 17 rare earth elements that are used in NdFeB magnets -- surged to the highest in a decade this summer.
Vale says Salobo copper mine operations halted by fire
Oct. 05, 2021 Vale S.A. (VALE)By: Carl Surran, SA News Editor
https://seekingalpha.com/news/3749239-vale-says-salobo-copper-mine-operations-halted-by-fire
Oct. 05, 2021 Vale S.A. (VALE)By: Carl Surran, SA News Editor
https://seekingalpha.com/news/3749239-vale-says-salobo-copper-mine-operations-halted-by-fire
- Vale (NYSE:VALE) says production of copper concentrate at its Salobo mine in Brazil has suspended due to a fire, and production is not expected to resume before the end of October.
- The company says other activities such as mining and maintenance are continuing normally, as the cause of the fire is under investigation.
- Salobo produced 172.7K metric tons of copper in 2020, nearly half of Vale's annual output.
- Yesterday, Vale halted operations at the Onça Puma mine, also in Brazil's Para state, after an environmental regulator suspended the operating license.
Vale, a company beset by continual disasters.
https://editorial.glacierrig.com/wp...0/WhatsApp-Video-2021-10-05-at-5.08.22-AM.mp4
https://editorial.glacierrig.com/wp...0/WhatsApp-Video-2021-10-05-at-5.08.23-AM.mp4
https://editorial.glacierrig.com/wp...0/WhatsApp-Video-2021-10-05-at-5.08.22-AM.mp4
https://editorial.glacierrig.com/wp...0/WhatsApp-Video-2021-10-05-at-5.08.23-AM.mp4
Last edited: