Archive

With consolidation on the horizon, related policies will need to be personalized in order to be effective

China's rationalization of its steel industry has taken a step further by instituting a personalized approach to output cuts. With environmental regulation still as their spearhead, authorities have elected to drop a "one-size-fits-all" approach—requiring steel producers to cut as much as 50% of existing output, regardless of their size and emission levels—and instead, will regulate … Continue reading With consolidation on the horizon, related policies will need to be personalized in order to be effective

MITI establishes task force to monitor US-China trade conflict and protectionism

18 July 2018. The Ministry of International Trade and Industry ("MITI") has established a task force to assess the developments of the US-China trade conflict and formulate strategies to mitigate the impact of trade protectionism. The ministry said the task force will monitor and coordinate the feedback from various stakeholders against the backdrop of the escalating … Continue reading MITI establishes task force to monitor US-China trade conflict and protectionism

Chinese conglomerate looking to invest in a USD3.5 billion integrated steel plant in Philippines

18 July 2018. Chinese conglomerate Panhua Group signed an agreement with the Philippine Economic Zone Authority to put up a USD3.5 billion integrated steel plant in the Philippines. The proposed steel plant was a modern facility capable of producing 10 different product lines of various applications, complete with a modern port and a 300-hectare industrial park.

Insights into Next-gen Advanced High-Strength Steel for the automotive industry

A recent article suggests that the next generation of advanced high-strength steel ("AHSS") is emerging as the backbone of the automotive industry, due to its comparative advantages over aluminium and carbon fiber in the quest for fuel efficiency. While aluminium is one-third the weight of steel, it costs three times as much to manufacture. Similarly, carbon … Continue reading Insights into Next-gen Advanced High-Strength Steel for the automotive industry

Hiap Teck Venture Berhad’s Eastern Steel resumes operation

17 July 2018. Hiap Teck Venture Berhad announced today that its blast furnace operated under Eastern Steel Sdn Bhd has resumed operations. The news comes after Eastern Steel has ceased operations for nearly three years, since October 2015. Eastern Steel is principally involved in the manufacturing of steel slabs, with a current production capacity of 700,000 … Continue reading Hiap Teck Venture Berhad’s Eastern Steel resumes operation

Vietnamese steel production expected to grow by 20% in 2018

16 July 2018. According to the Vietnamese Ministry of Industry and Trade, total domestic steel production is expected to gain a year-on-year growth of about 20% this year. In particular, construction steel segment is expected to grow by 10%, cold-rolled steel sheets by 5%, welding steel by 15%, and galvanized steel at 12%. Hot-rolled steel … Continue reading Vietnamese steel production expected to grow by 20% in 2018

India keen to join Russia in WTO case against US on steel, aluminium duties

16 July 2018. India has expressed its willingness join the World Trade Organisation (WTO) dispute consultation requested by Russia as third party against the US decision to impose high customs duties on certain steel and aluminium products. India has also expressed its willingness join the WTO dispute consultation requested by Norway as third party. Exports of Indian … Continue reading India keen to join Russia in WTO case against US on steel, aluminium duties

Capitalize on bargain buys and brand positioning in future markets for strategic growth

The global steel market conditions over the past years have engendered distressed assets in the global steel industry, as steel players who were not financially strong enough to weather the storm were forced to entertain new investors at attractive offers. Given today's protectionist climate, buying into new markets may be more effective than attempting to … Continue reading Capitalize on bargain buys and brand positioning in future markets for strategic growth

The Malaysian steel industry may not win the capacity game, but that is not as disadvantageous as it would seem

Unlike most steel industries around the world, the Malaysian steel industry seemed to have "bypassed" blast oxygen furnaces ("BOF") right from the start. Historically, production of crude steel has been delivered solely through electric arc furnaces ("EAF"), which totaled 3.2 million metric tonnes in 2017. While EAFs may not yield the same economies of scale … Continue reading The Malaysian steel industry may not win the capacity game, but that is not as disadvantageous as it would seem

In slow-growing markets, consolidate to be structurally stronger, not structurally bigger

"The European market is growing at 1-1.5% a year. We just want to have significant relevant size. As of now, the intention is to make the [ThyssenKrupp and Tata Steel] joint venture work, and make it profitable and sustainable. This market is not a growth market where you build capacity. It is a market where … Continue reading In slow-growing markets, consolidate to be structurally stronger, not structurally bigger