Russian steel giant Severstal calls for global steel to drop production

Alexei Mordashov, CEO of Russia's second largest steel mill Severstal appeal, hopes the global large-scale steel mills and governments to reach an agreement to reduce steel output and excess capacity.

He said: "As long as we do not solve the problem of supply and demand of steel, the steel industry outlook would not be optimistic. Even worse is many steel enterprises will face bankruptcy or off. "

"Steel overcapacity is a very serious problem if we do not solve this problem, the crisis in the steel industry 10-15 years ago will be repeated. At that time, the United States 1/4 steel enterprise go bankrupt."

U.S. and European steel mills are facing with deficit, but Severstal is still profitable. Mordashov said: "Severstal can be profitable, we are fully capable to survive. However, our goal is not to survive, but to thrive, and Severstal's development depends on the prosperity of the entire steel industry. "

Mordashov thought that the steel industry leaders and governments should reach an agreement to reduce capacity, as in 1994 the practice of treating the aluminum industry. At that time, the European Union, the United States, Russia, Canada, Australia and Norway have agreed to reduce aluminum production. According to their agreement, the global aluminum output fell by 6%.

ordashov said that if the steel industry does not take similar measures, then the steel plant would be forced to lay off more workers and close the door. This trend is intensifying. The world's largest steel company Arcelor Mittal has closed steel mills in France and Belgium, and carried out layoffs. Meanwhile, ThyssenKrupp and Salzgitter also have decided to layoffs.

Mordashov said: "We are facing a serious risk that the steel industry suffered huge losses and upheaval. If we do not pass an order way to restructure inefficient steel mills, so our budget and the customer will suffer more serious damage. "

BCS Financial Group analyst, Oleg Petropavlovskiy said, although Mordashov's proposal is a good idea, but it is almost unenforceable. "Even the United States, Europe and Russia steel plant agreed to drop overcapacity, China is still a key issue."

Petropavlovskiy said, "China exports a large number of steel products to worldwide" while the Chinese government is unlikely to drop capacity. As long as China does not solve the problem of excess production capacity, steel prices will not rise.

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Seven features of wear-resistant plate

1. High wearable performance

Wear-resistant steel plate of wear-layer thickness is 3-12mm, wearable layer of hardness can reach HRC58-62, wearable performance is 15-20 times higher than ordinary steel, is 5-10 times higher more than low-alloy steel plate, and is 2-5 times higher more than high chromium cast iron wear resistance, wearable resistance is much higher than spray and thermal spray etc. methods.

2. Better impact resistance

Wear-resistant plate is a double metal structure, between wearable layer and the substrate is a high strength metallurgical combination, which can absorb energy by the impact of the process and wearable ear layer will not fall off, can be applied to vibration, shock strong working conditions, this is casting wear-resistant materials and ceramic materials can’t be compared.

3. Good stability

Wear-resistant steel of alloy carbides has a strong stability at high temperatures, it can be used in 500 , other special requirements of the temperature can be customized to produce, which can meet the condition of less 1200 . Ceramics, polyurethane, polymer materials and other high-temperature resistant materials can’t meet such requirements.

4. Good connectivity

The substrate of wear-resistant steel is a common Q235 steel, which ensure wear-resistant steel with toughness and ductility and offer strength to resist external forces, can take welding, plug welding, bolting etc. a variety of ways to contact with other structures, connections are secure, not easy to fall off, connections more than other materials.

5. Good selectivity

Wear-resistant plate can choose different thickness of substrates, through surfacing the different layers and the thickness of alloy wearable layer can obtain different thickness and different uses of the plate, maximum thickness up to 30 mm or more.

6. Good processing performance

Wear-resistant plate can be processed into different specifications and size according to requirement, it can be processed, cold forming, welding, bending, etc. and easy to use. You can be welding molding in spot, repair and replacement work has become more time-saving and convenient, which greatly reduce the work intensity.

7. Good ratio of price

Wear-resistant steel prices increased compared to conventional materials, however, considering the product life, maintenance costs, spare parts costs and downtime, its cost performance is much higher than ordinary steel and other materials.

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U.S. Steel to launch a new round of price increased

Due to increased costs and tight supply, in early November, the United States steel mills comprehensively launched a new round of price increased, this initiatives is expected to push the U.S. market as a whole rose.

California iron and steel company, USS-Posco, Severstal North America and AK Steel Corporation have announced Sheet price increased, the range is 20-60 U.S. dollars / short ton. After price increased, ex-factory price of hot coil rose to 680-710 U.S. dollars / ton, ex-factory price of cold rolling rose to $790-820 / ton. Gerdau Long Steel North America, Steel Dynamics Corporation, Nucor Steel Company and Commercial Metals Company have increased rebar prices 10-20 U.S. dollars / short ton, after adjusting Midwest mill of rebar prices rose to 650-680 U.S. dollars / short ton. Nucor Steel Corporation also announced price of plate further increased $ 40 plate / short ton. Adding the October price increased totally raised $ 70 / short ton, A36 commercial grade plate of ex-factory price will rise 770-790 U.S. dollars / short ton. In addition, North American companies Gerdau Long Steel North America raise wire rod prices to 30 U.S. dollars / short ton, wire ex-factory price will rise to 660-670 U.S. dollars / short ton.

November U.S. scrap price increased by $ 20-30 / long ton, steel mills of raw material costs increased substantially, at the same time close to the end of the year buyers started to replenish stocks, while both domestic and imported resource began to appear shortage. Preliminary statistics show, October U.S. steel imports MOM dropped by 44%, compared to last year decreased 37%, the imports since March 2010 to reach its lowest level. Increased costs and supply shortages are the main reason for helping steel mills to increase price.

As good basic for the U.S. market, this round of price increases is expected to be accepted by the market. Market is expected next year a quarter sheet imports will continue to shortage, therefore, to the end plate market can absorb at least some of its gains. In the field of long product, due to rebar prices are still low, the market is expected to absorb at least 10 U.S. dollars / short ton of gains; because wire demand is relatively weak, the rate of increase is limited. Thick market due to supply shortages, price increased are expected to be accepted, however, considering the potential import pressures, continued upside may be limited.

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Seamless steel pipe production line of the main cooling bed type

Seamless steel pipe production line of the main cooling bed types have Single strand cooling bed, Duplexes cooling bed, New Chain cooling bed, Stepping rack type cooling bed and Screw type cooling bed.

1. The single-stranded cooling bed

Single strand cooling bed more adopts climbing structure. Cooling bed composed by forward transport chain and fixed rail, with a set of transmission. Steel pipe placed in the forward transport chain, fixed rail bear the weight of steel. Single-stranded cooling bed use driving force of forward transport chain and friction of fixed rail to rotate the steel pipe, while relying on steel weight and the angle of lift, to make the pipe always closed in the forward transport chain, achieving steel tube rotates smoothly.

2. Duplexes cooling bed

Duplexes cooling bed composed by the forward and reverse transport chain, forward and reverse chain with a set of transmission. Steel pipe placed in the forward transport chain, reverse chain bears the weight of steel. It use driving force of forward transport chain to run pipe, and using the friction of reverse chain to make the steel pipe carry on a continuous rotational movement. Movement of the reverse link makes the pipe always closed in the forward transport chain, achieving steel tube rotates smoothly and uniform cooling.

3. The new chain cooling bed

A combination of the characteristics of single-stranded and double-stranded cooling bed, the cooling bed is divided into uphill and downhill sections. Uphill section is a double-stranded structure composed by forward and reverse transport chain, positive and negative interaction together to make steel continuous rotation and forward, doing climbing movement. Downhill section is a single chain structure composed by the forward transport chain and steel rails, relying on weight to achieve rotation and landslide movement.

4. Screw type cooling bed

Screw-type cooling bed is composed by gearing, screw and fixed cooling stand and so on, screw including screw rod core and screw spirals. Fixed cooling bench face is higher than top of screw rod core and below screw spirals, the weight of steel bear by fixed cooling stand. Main gearing driven screw synchronously rotating, screw spirals pushed steel to roll forward in fixed cooling bench.

Single-strand cooling bed is not suitable for continuous operation, duplexes cooling bed has a better effect, New Chain cooling bed has a good effect and low cost, Stepping rack type cooling bed is generally used in large or high configuration of production line, Screw-type cooling bed for cooling generally smaller diameter of the pipe.

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Vale CEO: iron ore expansion plans remain unchanged

Vale CEO Murillo Ferreira said in Shanghai that no matter how the market changes, our expansion will continue. In terms of iron ore expansion, Vale has already obtained capital expenditure approved by the Board of directors amounted to $ 35 billion, including SerraSul and Carajas etc. expansion projects.

In 2016, if these projects can be completed as planned, Vale's iron ore of annual output will reach 450 million tons.

In the past five or six years, Vale did not like it’s Australia's competitors to actively expand, but the company's management does not seem to worry about market share will therefore reduce, Executive Director of iron ore and Strategic Jose Carlos Martins said expansion we are catching up, and the market continues to grow, the capacity is still large. Our expansion is the high-grade iron ore but low cost, even if the price drop is not a problem for us.

Murillo Ferreira reminded that, in the analysis of market supply and demand for iron ore, mine depletion problems are often ignored. Over the past decade, many mines are in full production status, which has resulted in product quality is unstable and resource depletion. Therefore, efficient suppliers to survive, everything is determined by the market. Vale face of the geographical advantages of the Australian competitors, only hard work, reduce costs and provide high-quality products can cope

However, as an important mean to solve the long-distance transport, the outlook of Valmax ship berthing in China is still unknown. Murillo Ferreira said Valemax can wait, even though its cost saving, energy consumption, environmental aspects are good, but Vale respect China's government agencies, it should take time to understand the benefits of Valemax. Load capacity from 380,000 to 400,000 tons of Valemax freighter is by far the largest ship built in the world.

When asked about the Chinese government plans to reduce 80 million tons of steel production capacity, Murillo Ferreira thought that the Chinese Government has always been more cautious when taken various measures, especially the problem of overcapacity. Currently the Chinese government's focus remains on solving the problem of local government debt, as well as some economic policies over the past bring impact to the current economic situation.

This year for the first time from Vale sales iron ore to China just right 40 years, In the meantime, Vale sold a total of 1.1 billion tons of iron ore to China, In recent years, China's consumer market nearly reached half of the total. The next plan is to finish 40-year shipments in the past six years.

In addition to its core business as iron ore, Vale's key business segment also includes nickel, copper, metallurgical coal and fertilizer, Metallurgical coal of capital expenditures reached $ 6.4 billion.

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Japan has strengthened steel for offshore wind power research

Recently, the Japanese national project "Floating form of offshore wind power research" of the launching ceremony was held in Fukushima Onahama Port. The project of floating form offshore wind platforms mounted on 20 kilometers outside of Port Onahama, shipped from Chiba of 2MW wind power equipment will be combined with the 66kV substation floating body binding shipped from Yokohama, and recently officially to run and generate electricity.

This project is participated by NSSC, Japan JMU (Japan Marine United) company, Mitsui shipbuilding etc. 10 enterprises and the University of Tokyo. NSSC is primarily responsible for the development of high-performance steel. The project of 2MW Floating form of offshore wind power equipment requires high strength plate of 2000 tons. In the field of ocean energy steel, NSSC can take advantage of shipbuilding plate processing technology, in achieving high welding workability, cost reduction at the same time, fully considering the impact of wind wave adaptability, and the development of new steel materials.

The project is scheduled to start 7WM floating form of wind power projects in next year, each machines required 3,000 tons of plate, with wire and rod totally mounted about 20,000 tons. As new materials of the world's largest offshore wind power equipment, required both the performance of high strength and high toughness to meet structure requirement of marine wind power. In the process of popularity of offshore wind power, the production cost is also very important, so it must vigorously reducing costs while ensuring excellent performance. Meanwhile, in the offshore construction need to consider the weather conditions. In order to shorten the construction period should greatly improve the steel welding performance and workability. The strength of steel must have resistance of seawater and wind. Britain is studying the construction of seabed fixed wind power, this requires more steel, therefore, the global offshore wind power market prospects timber.

NSSC engineering company is very concerned about offshore wind power project, in order to exert its marine towing and tethered etc. marine construction advantages to explore new markets. In this project, 2MW Floating form of offshore wind power equipment from Tokyo sea lead to Fukushima fixed, now is taking enhanced measures. The company will focus on strengthening the development of marine wind power projects, intends to use existing strengths to enhance the design, equipment manufacturing and construction, especially for floating form of offshore wind power from traction to fixed mooring of the main construction work carry out full summary, to promote the rapid development of the company's business.

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September U.S. steel imports from China increased significantly

U.S. Commerce Department released data show, September 2013 U.S. imports 2.505 million tons of steel, month to month dropped by 4.1%, compared to last year growth of 6.1%. 1-9 months total steel imports 21,674,000 tons, year on year drop 7%.

From species to see, compared with last year, the growth rate of rebar is biggest, reached 155 percent, hot rolled growth of 24.4%, galvanized sheet increased by 11.9%, but the steel pipe, wire and plate has a larger decline. Compared with August, there are larger increase in rebar and plate, steel pipe, wire rod and cold volumes has larger decline. From import source countries and regions to see, compared to last year, there are larger imports growth from Central and South America, Japan, China and Turkey, and imports from the CIS and EU decreased significantly. Compared with last month, imported from Japan, China and Turkey imports increased significantly, from North America, South America, South Korea and the CIS decreased greatly. September U.S. imports 176,500 tons of steel from China, month to month growth of 76.88%, compared to last year increased by 89.4%.

The latest statistics show that until to October 25, 2013, October U.S. steel import license number is 127 million tons, which much lower than the same period value in September, U.S. steel imports is expected to significantly decrease in October.

Japan's crude steel output of this year hit a five years record high

According to the latest forecast of the Japanese Ministry of Economy, Japan's crude steel output of this year is expected to increase to 111 million tons, compared to last year growth of 3.1%, and hit a five-year record high. The main reason is government to increase infrastructure spending and housing construction.

Recently, the Japanese Prime Minister expressed, April of next year the consumption tax from the current 5% is raised to 8%. At the same time, increasing infrastructure spending to stimulate the central bank to take more forceful measures to end deflation. Since taking office last December, Japanese Prime Minister funding at least 10 trillion yen for infrastructure upgrades. In addition, the Japanese construction continues to increase, including the Northeast reconstruction projects after the earthquake in March 2011.

Benefited from strong demand for steel and depreciation of the yen, Japanese steel share price and profit rose, including Japan's largest steel producer NSSC Company and JFE Steel Corporation. Since the end of last year, the Japanese yen against the U.S. dollar fell by about 20%. Depreciation of the yen not only prevented imported resources from Korea and China etc. Asian countries, while helping Japanese manufacturing regain competitiveness in export markets, causing domestic steel manufacturers work hard to increase production.

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India's "12th Five Year Plan" steel production capacity difficult to complete

Recently, foreign media reports, Due to the current economic slowdown makes the steel mills in India postponed to expand production capacity, meanwhile the Indian government delays in the approval of new projects, will make India's steel industry difficult to achieve previous setting of the "12th Five Year Plan" steel capacity growth targets.

Indian government's "Twelve Five" (2012 - 2017) plan say that, Indian steel production capacity from the current 90 million tons increase to 142.3 million tons in 2017.

India, a securities analyst said that it is clear that India can’t achieve steel production capacity of 142 million tons of goals in 2017. The vast majority of Indian domestic steel companies have delayed the expansion of production capacity, estimated that India's steel production capacity can‘t exceed 100 million tons to 1.05 million tons.

India's "Twelfth Five-Year Plan" relevant documents show that with India's gross domestic product (GDP) to maintain growth of 9%, steel consumption is expected to grow by 10.3%, on this basis the 2017 Indian steel production target is set at 142.3 million tons. India-related industry sources said that the target is indeed high, because this data is established on sustained GDP growth of 8% in the basis. According to Rao, India Commercial Bank chief economist introduces the next three years, the average growth rate of India's GDP expected to be 6%.

Due to steel construction project approval delays, as well as environmental permit applications and other unfavorable factors effect, India's steel production capacity increase has emerged signs of deceleration. According to analyst introduced, like Tata Steel, JSW Steel and Steel Authority of India and other Indian steel companies are also facing the problem of delays and postponement. Although India's steel companies have announced before the "twelfth five" increase71 million tons of steel production capacity, however, due to the lack of project delays or regulatory permits, this will be the uncertainty of future production capacity.

Indian steel prices may rise

Future steel prices rose mainly due to:

First, the Indian government approved a series of infrastructure projects that will lead to rising steel demand in the coming months.

Second, in October, the Indian state-owned bank announced that it would cut 0.20 percent interest on the car, within three years to buy a new car the lending rate is 10.45% -10.75%. India's largest car manufacturer Maruti Suzuki India has announced its October car sales rose 1.91 percent, reaching 105,087 units, and according to the analysis in the next few months, sales will continue to rise.

Third, the Indian government has injected 140 billion rupees to state-owned banks, This will encourage banks to lend in the coming festive season to stimulate consumers to buy cars and consumer durables.

Finally, the Indian rainy season ends, the new construction activity will increase.

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 Why China's steel exports in September create new low

China's steel exports in August created a new high in nearly three years, in September suffered a dump, total exports fell sharply. EU and emerging economies export situation of uncertainty and accelerate the appreciation of the RMB is the main reason about China's steel exports decline.

According to customs statistics, September China's steel exports were 4.92 million tons, MOM fell 1.22 million tons in August, drop 4.47%; From January to September, China's steel exports was 46.9 million tons, an increase of 14.6 percent. September, China imported 74.58 million tons of iron ore and concentrates, MOM in August increased 5.57 million tons, an increase of 14.72 percent, average import price was $ 126.18, MOM rise 7.34 U.S. dollars / ton.

External demand is still uncertain, September China negative growth in exports to the EU

With the gradual recovery of the global economy, September global manufacturing sentiment index rose to 51.8%, an increase of 0.2 percentage points and create a new 27-month high. But the euro-zone manufacturing sentiment index totally fell 0.3 percentage points to 51.1%, according to statistics, compared with the same period of last year September China total value of exports to the EU appeared 1% of negative growth, compared with August fell 3.1 percentage points. On a month-on-month basis, September China exports to the EU fell 8%. Situation is analogous that exported to other area in the world, September total trade of China's exports in East Asia fell 2.8 percent, only Japan and Vietnam export value MOM appear rise, Japan's growth of 16.7%, an increase of 7.8% in Vietnam.

Looked from international market's major economies’ export performance, although the performance of the global manufacturing economy steadily recovering, Asian economies have also maintaining recovery situation, but the total value of imports from China did not improve.

Overall decline in international steel prices, China steel export prices fell slightly

With the Fed's heating of Quantitative Easing, international markets all want to avoid risk, commodities collectively appeared price decline. Led by the capital market of price reduction, the international steel prices also totally reduce. Because China's finished steel export prices fell slightly, reducing the low price export advantage of finished steel, which is relatively unfavorable on the latter exports.

Global crude steel production growth, create a new high in past two years

Statistics show that, September 2013 Global 64 major steel-producing countries and regions of crude steel production is132.5 million tons, year on year an increase of 6.1%,the growth rate is the highest level since November 2011, which show that global economy is significant improvement. However, this result directly result an oversupply of global steel market, therefore, China's steel exports become more difficult.

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 Choice between scrap and iron ore: Environmental protection become key factor

In the current vigorously promote energy conservation and recycling economic situation, increase scrap application level is imperative, however, for requiring high-yielding of domestic enterprises, this is also greater difficulties. Therefore, to change the status of low utilization of scrap, it still needs a long process.

At present, China's steel industry transformation and upgrading of the two cores - green transformation and product upgrades are directly related with the consumption of scrap, but last year to this year, domestic key steel enterprises of scrap consumption was dropped significantly.

Data show that in 1-5 months of last year, China's overall steel scrap consumption fell 21.7 kg. Among them, BOF steel scrap consumption decreased 8.8 kg more than last year, EAF steel scrap consumption fell 117.6 kg.

Meanwhile, China's total consumption of scrap also shows a downward trend. Statistics show that in 2012 China consumed 84 million tons of scrap steel, compared with 2011 year of 9100 tons, reducing by 700 million tons.

In this regard, experts said this is mainly due to steel prices continued to slump, scrap costs are high, as well as controllability of steel scrap is poor etc. factors affected. In which the cost of scrap higher than iron is the root cause of low scrap consumption.

In the international market, for example, although iron ore prices experienced several price increases, which has be more than 100 dollars / ton of price, and 1.67 tons of iron ore can produce one ton of steel, but compared with 400 dollars / ton of the scrap price, 1.67 tons of iron ore price is very low.

Experts point up that even adding iron ore steelmaking of consuming energy costs, it still not enough to make up the difference price with scrap, moreover, Iron ore of thermal utilization and recovery can’t be ignored.

It is worth mentioning that another major reason resulting domestic scrap ratio is not high, that is environmentally illegal low cost. Because domestic environmental protection has insufficient attention, illegal cost is low and causing law-abiding at a disadvantage. In contrast, because of stringent foreign environmental system, scrap as energy saving materials is more likely to be favored than iron ore.

In addition, the high scrap import taxes and stringent environmental protection system, also to some extent dampened the enthusiasm of buyers, resulting in insufficient supply of raw materials, eventually had to abandon reliance on scrap and turning to iron ore. However, with the national importance of environmental protection and the increase in volume of output, scrap iron will also be favored by steel enterprises.

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Introduction of carbon steel pipe

carbon steel pipe

Carbon steel pipe is made of steel ingot or solid tube capillary after punching to form capillary, then by the hot-rolled, cold-rolled or cold-drawn to make steel. Carbon steel pipe in China's steel industry has an important position.

The raw material of carbon steel pipe is round tubes, round tube should be cut by cutting machine, and worked into the blank of about 1 meter, finally belt to the furnace heating. The billet is fed into the furnace heating, what’s temperature is about 1200 degrees Celsius. Fuel is hydrogen or acetylene. Furnace temperature control is the key issue. Round tube came out should use pressure punch to punch. General common punch is tapered piercing mill. this punching has features of machine high production efficiency, product quality, perforated expanding capacity, which can wear a variety of steels. After perforation, round tube should be rolling or extrusion. Then it should determine the diameter after extrusion. Sizing mill through a cone drill rotating at high speed drilled into the billet to form a pipe. Length of the drill diameter of sizing mill determines pipe diameter, then it is delivered into the cooling accepted tower water cooling, after cooling pipe, it will be straightening. Finally pipe sent to the metal detection machine for internal testing, if the pipe has wall cracks, bubbles and other issues, it will be detected.

Classification of carbon steel pipe

Carbon steel pipe is divided into hot-rolled and cold-rolled steel of two categories.

Hot-rolled carbon steel pipe is divided into general, low and medium pressure boiler pipe, high pressure boiler pipe, steel pipe, stainless steel pipe, oil cracking pipe, geological steel pipes and other steel.

Type of cold-rolled more than hot-rolled, it also includes carbon walled steel, alloy steel tubes, stainless steel pipe and shaped steel. Hot-rolled seamless steel pipe diameter is generally greater than 32mm, wall thickness 2.5-75mm, cold-rolled seamless steel pipe diameter can archive 6mm, wall thickness can be 0.25mm. The accuracy of cold-rolled is high than hot-rolled.

General carbon steel pipe is made of quality carbon steel, low-alloy structural steel, alloy steel hot-rolled or cold-rolled. 10, 20 and other low-carbon steel seamless pipe mainly used for fluid pipes. 45, 40 Cr, etc. carbon steel seamless pipe is used in manufacture of mechanical parts, such as automobiles, tractors and the force components. Carbon steel pipe is generally to ensure the strength and flattening test. Hot-rolled steel is delivery as hot-rolled state or heat treatment; cold to delivery as heat treatment. 

 We are high quality Carbon Steel Pipe supplier and manufacturer, if you have any need, please feel free to visit our website-


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