Siemens to construct long-product rolling mill in the United Arab Emirates

Siemens Metals Technologies has received an order from United Steel Industries LLC to construct a long-product rolling mill in the United Arab Emirates. The plant will be built in the Fujairah Free Zone and designed for a production capacity of up to 950,000 tonne of structural steel per annum. It will comprise a bar mill for rebars and a wire-rod line, which will be able to produce both rods and wire coils.
The value of the order lies in the double-digit million euro range. The new rolling mill is scheduled to come into operation in mid-2014.

  Rebar prices in Pakistan up by PKR 5000 per tone

The steel melting industry has announced to raise the prices of steel bar up to PKR 5,200 per tonne in the wake of recent power tariff hike. Market sources said that the recent adjustment in the power tariff and rising cost of production have forced the steel industry to increase the prices of steel bar. The said,”The recent raise in power tariff is much higher than expectation; therefore steel melters have decided to pass on this increment toward the consumers to avoid the industry closure." Steel melters have announced to increase prices of steel bars, made of billet, by PKR 4,500 to 5,200 per tonne. With current surge, prices of quality steel bar have reached PKR 83,000 to 85,000 per tonne in the domestic market up from PKR 78,000 to 80,000 pet tonne. The government has recently revised power tariff, according to which the B 3 TOD peak rate has been increased by 48% to PKR 18.81 per unit from PKR 12.68 per unit while its off-peak rate reached PKR 13 per unit, up by 68%. Most of local steel melters and re rollers are electricity consumer of B3 category and the weighted average unit tariff increase for peak and off peak is PKR 5.4 per unit, whereas peak hours are 4 hours per day. Industry sources said that recent increase is only due to changes in power tariff and another raise is being expected in next few weeks as the government is likely to revise the gas tariff as well. They criticized the immediate and one time increase in the power tariff and said that it will put negative impact on the all sectors, particular steel industry. They demand that "The government should consider its power tariff policy and increase electricity tariff phase wise to protect the domestic industry. The massive and historical rise in power tariff would also encourage the electricity theft in the steel sector.”

  TATA Steel bags major order rail order to link Saudi Arabian two holy cities

TATA Steel has won an order to manufacture 60,000 tonnes of high quality rail for a new high speed line linking the two holy cities of Mecca and Medina in Saudi Arabia. The new railway will allow millions of pilgrims to cross the 276 miles between the 2 cities at speeds of 200 miles per hour. The line will cross desert, withstanding temperatures ranging from freezing to 50oC, as well as sand storms, flash flooding and shifting dunes.
Mr Gérard Glas, Rail Sector Head for TATA Steel, said that “This is a prestigious project which will see the holy cities being linked by rail for the first time." Mr Glas said that “TATA Steel is delighted to be contributing to this high-speed line, which will have to overcome some major challenges presented by building a high-capacity rail line across some of the most extreme terrain in the world.” However, steel for the project will be made at TATA Steel's Scunthorpe plant before being rolled into rail in lengths of 25 metres both there and at the company's plant in Hayange, Northern France.
Work on producing the rail will start at the end of this year and is expected to continue throughout 2014. TATA Steel rail has already been used successfully in similarly challenging conditions for projects in Brazil and Mauritania. Meanwhile, last year the Saudi Railways Organization awarded the contract for the final phase of completing, running and maintaining the Haramain High-Speed Rail Project to a group of Spanish infrastructure, construction and technology companies.

  Iran and China agree on car production

The Trend reported that 2 major Iranian and Chinese auto production companies have agreed on production of Chinese cars in Iran. It should be recalled that, some news has been published about Iranian and Chinese auto companies' negotiations in mid-July. According to the agreement, each of the Iranian two car production companies will manufacture one Chinese car model in their subsidiaries. Iran's auto sector hopes to neutralize U S sanctions effects with Chinese companies help, while experts argued that, cooperation with Chinese auto production companies is a short term solution and will be effective in long term.
The sanctions focused on the auto sector also target foreign financial institutions. According to projections, the sanctions will lead to a 40% rise in production costs in Iranian car making companies as Korean suppliers used to provide Iranian companies with 60% of their needs. Major European car companies including Renault, Peugeot and Fiat also halted their activity in Iran. Iran's auto production has decreased by 56% in May compared to the same period in 2012 and it's auto export dropped from about 6,000 in March 20th to May 20th 2012 to 1,000 cars in same period in the current year. According to the statistics, about 69 auto manufacturer units have been closed and 115,000 people lost their jobs in auto sector during the past 2 years.

Turkish wire rod exports down 44.6% in May

According to the data provided by the Turkish Statistical Institute in the first half of the year Turkey's wire rod exports amounted to 514,405 tonne decreasing 15.8% while the revenue of these exports fell to USD 312 million, down 21.9%, both compared to the same half of 2012.
In the Q2 of the year, Turkey's total wire rod exports amounted to 217,847 tonne, falling 26.8% QoQ and down 30.9% compared to the same period of 2012, declining to the lowest quarterly level recorded since the Q2 of 2009. In June,
the average price of Turkey's wire rod exports stood at USD 595 per tonne falling USD 11 per tonne MoM and down compared to the average of USD 648 per tonne recorded in the same month of 2012.
Turkey's wire rod exports to the Middle East region totaled 59,020 tonne in the Q2, having remained under 60,000 tonne since the Q4 of 2012. A 28.5% YoY decrease was recorded in Turkey's wire rod exports to the Middle East in the second quarter of the year.

  Turkey H1 flat steel imports up by 25.6%

According to the data provided by the Turkish Statistical Institute in the first half of this year Turkey's flat steel imports, including hot rolled, cold rolled, coated and narrow strip steel, increased 25.6% compared to the same period of 2012, totaling 3 million tonne. The value of these imports amounted to USD 2 billion, rising 12.8% YoY. In June this year, Turkey's flat steel imports amounted to 496,435 tonne rising by 8.6% compared to the previous month and increasing 10.1% YoY.

  Concern over PSM future deepens

Federal government is still in confusion over the future of a bleeding Pakistan Steel Mills which urgently needs an injection of PKR 12 to 13 billion to pull the entity out of severe financial crisis. Official documents obtained from PSM reveal that the cash requirements for the year 2013 to 14 would be to the tune of PKR 13.6 billion. Ministry of Industries and Production has submitted three options to the Economic Coordination Committee of the Cabinet which are as follows: (i) PSM may be privatized but this option cannot be exercised due to Supreme Court decision (ii) PSM may be closed. This option may have repercussions with over 15,000 people losing their jobs which may lead to a law and order situation and the import bill of iron & steel products will rise resulting in an additional burden on foreign exchange reserves and (iii) PSM may be revitalized. The sources said that these three options had been tailored by the then Secretary Production, Mr Sajjad Saleem Hotiana and submitted to the Prime Minister in May 2013. However, the government did not consider these proposals seriously.