Majors in 3rd Week of May

News Updated: 28 May 2022

Productivity Analysis:

METI’s Anticipation of Crude Steel Productivity in Japan:
Ministry of Economics, Trade & Industry (METI) anticipated that the crude steel productivity of Japan would increase by 3.5% in the 2nd quarter of 2022 but a decline of 2.1% compared to 2021. METI provided estimates of increase for two items i.e., small bars will increase to 5.9% & H-beams will increase to 5.3% in the 2nd quarter of 2022.
However, this is not too sure due to two issues:
– Russian Invasion of Ukraine
– Covid lockdown in districts of China

Metinvest Productivity Drop Down:
The Russian invasion of Ukraine has affected the productivity of different sectors. Metinvest of Ukraine’s well-known steel mill has lost its productivity due to keeping most of its plants non-functional to avoid the wastage of resources in the first three months of 2022.
Russian attacks have damaged the two well-known subsidiary steel companies of Metinvest Azovstar & Illich Steel

Pakistan’s Imports:
Pakistan is one of the main buyers of ferrous scrap in South Asia. There was a decline in Pakistan’s imports from 0.32 million tons in March to 0.27 million tons in April.
Importers from Pakistan remained out of the market during the eid holidays. In the 2nd week of May, Pakistani importers were again in the market. Prices of Pakistani imported raw materials had decreased to the lowest value in the last five months. Importers are waiting for reductions, but importers and mills both are interested in adding up their stocks as a precaution against monsoon weather.
Pakistani rupee had touched the lowest value of exchange rate was $1=193.9. There were two deals of British-origin shredded at 525-530 USD/MT CFR & at 530-535 USD/MT CFR. Another had booked at 520 USD/MT of shredded of Europe based.
Turkey is the price setter for the scrap market. Its absence from the market slowed down the trade market.

Currency Depreciation Could Not Stimulate Demand in Bangladesh:
Decreasing scrap prices could not increase the demand in Bangladesh because the depreciation of the Bangladeshi Taka from 86 to 87.43 in exchange for one American dollar became responsible for bearish trade trends.
In the last week, British Origin shredded had an offer with a decline of 30 USD/MT CFR at 550 USD/MT and HMS at 525-530 USD/MT. Shredded has a final deal for the volume of 1000 tons at 540 USD/MT. Another reason for less demand is construction will squeeze in monsoon weather. Buyers were waiting for more reductions in prices that sellers were not willing. Sellers were offering prices for July bookings. Mills of Dhaka have offered rebar at 845-868 USD/MT

Brazilian Exports:
Brazilian Exports of pig iron decreased in April compared to March from 0.32 million tons to 0.25 million tons. Netherlands and America’s shares were 0.05 & 0.10 million tons respectively. Annual exports showed a rise of 19 percent.

Russia’s Major Exporter to China:
China has imported 22.2% more coking coal which is 4.26mnt. China has an import of 1.71mnt of steel scrap from Russia in April 2022.

Scope of EAF for Investment:
The transition of BF to the EAF is shifting the capital resources from blast furnace culture to the other furnace of green technology that attracts more investors, banks, and firms. The scope of EAF is more for investments. Tokyo Steel is the biggest steel mill in Japan to use EAF.

Emirates Steel Arkan Target of Zero Carbon Emission in UAE:
Emirates Steel & Arkan merged in 2021 as Emirates Steel Arkan. Arkan Building
Materials had a business of production of building & construction items that were dry mortar and bricks. Emirates Steel had a name in steel manufacturing regarding heavy sections, wire rods, sheet piles, and rebars had a merger in 2021 and is known as Emirates Steel Arkan’s largest steel manufacturer in the UAE. Emirates Steel had a name in metallic production regarding heavy sections, twine rods, sheet piles, and rebars had a merger in 2021 and was referred to as Emirates Steel Arkan largest metallic producer inside the UAE. The CEO of the group has announced an aim to have zero carbon emissions.
Effect:
 One group will be the motivation for the two markets i.e., bricks & cement and the steel industry to promote the green revolution.

China Delayed Carbon Free Target:
China has deferred the mission of its carbon emission strategy in response to the low characteristics of available data. It has planned to spread carbon-free technology to many sectors. For now, building materials like cement, bricks, etc., and non-ferrous metals have been exempted from the assessment process up to next year. Firms cannot have business deals on carbon-free quotas until 2025

Britishvolt Investment Opportunity:
Britishvolt is the producer of batteries. It had an investment opportunity from Scorpio Group (logistics and shipping company)
Aims:
– The two investment partners have aimed to free the maritime industry from carbon emissions with better technology.
– Aim to increase the process of improvement by investment in the battery.
– Aim to take better measures to reserve energy in this field.

Mine Hub Technologies Expanding its Services:
Mine Hub Technologies is a digital network that makes reliable digital currency against the metal & mining supply chain trading of material commodities. It keeps and manages trade information. It had added a new function that traders can have information on their trades and shipments i.e., the location of the vessel/container and arrival expected timings.
Trade Waltz Inc’s subsidiary companies are Mitsui-Soko, Toyota Trusho Corp, and Mitsubishi Corp. Japanese Group Tradewaltz has joined MineHub for digital servicing regarding the import transaction of copper ore from Sumitomo Corp.