Pakistan books 30,000mt bulk ferrous scrap cargo
Pakistan booked a 30,000mt bulk ferrous scrap cargo from a US West Coast supplier on Monday. A leading steel mill confirmed the deal. Shredded was booked at $306/mt cfr Port Qasim and P&S 5ft at $311/mt cfr Port Qasim. This is the first bulk cargo booking after a gap of two years. Global shortage of empty containers on coronavirus lockdown in China and an increase in freight rates resulted in higher buying inquiries for bulk ferrous scrap cargoes by mills based in Pakistan and India.
Yongxing Special Steel back to 100pc production
Yongxing Special Steel’s workshops across China has resumed to 100pc production capacity. Yongxing, a private steelmaker in Huzhou city, has implemented the required norms for prevention and control of the coronavirus at its six holding subsidiaries.
Baosteel Desheng’s SS plant to start in September
Baosteel Desheng’s 1780 stainless steel hot rolling plant is scheduled to start production in September. The production capacity of the Fujian province-based plant will be 4mn mt. Total investment for the project is CNY2.1bn. Project is in the final stage with the installation of heating furnace, rough rolling, finishing rolling, civil engineering work and mechanical work.
JSW to operate BPSL as separate entity
JSW Steel plans to manage Bhushan Power and Steel (BPSL) as a separate entity and fund the acquisition through a special purpose vehicle (SPV). JSW is seeking strategic investors and has engaged with banks to raise the debt required to fund the Rs19,700 crore acquisition of BPSL. Meanwhile, ex-chairman of BSPL, Sanjay Singal has filed a petition challenging the JSW-BPSL resolution deal but has failed to get a hearing as yet.
Southern Steel posts loss of MYR334.93mn in Q2
Malaysia-based Southern Steel posted a loss of MYR334.93mn in the December quarter (Q2) compared to a loss of 44.38mn in the prior year. The company’s financial year ends Jun 30, 2020. Southern Steel incurred an impairment loss of MYR258mn recognised on its plant, equipment and spares for the company’s hot-rolled coil investment, even though they are cash flow positive to the company. The operating loss before tax was still higher than the corresponding quarter due to reduced sales volume and margin compression caused by lower steel prices.