POSCO enters Turkish HRC spot market

POSCO enters Turkish HRC spot market

South Korean producers are now targeting to enter Turkey’s commercial HRC segment, which could tighten competition in Turkish domestic market and hit local mills’ positions.

South Korean HRC sellers used to concentrate mostly on sales to the Turkish automotive sector, but nowadays some of them, POSCO in particular, are aiming to strengthen their presence in Turkey’s commercial segment (traders, pipe-makers and re-rollers), which is relatively new for them. Their efforts have already been fruitful to certain extent as at least one large batch was sold to a re-roller in March at $425/t CFR, while local mills were standing at $430-440/t EXW/FCA. Currently, HRC offers ex-POSCO are around $400/t CFR vs. $405-420/t EXW/FCA locally. In addition, South Korean HRC is available for end-June delivery to Turkey, while Erdemir is mostly offering same delivery terms for domestic customers.

A new supplier, coming to Turkish spot market, will most probably have a direct impact on local HRC producers. On the one hand, they may lose a share of the domestic market, which appears to be hardly acceptable given the constantly shrinking export opportunities. “Tat Metal, Borcelik, Tezcan most probably will be their main buyers as POSCO offers HRC of an excellent quality,” a major trader told Metal Expert. As a result, local sales of Turkey’s Erdemir and Colakoglu Metalurji will most likely be affected as Habas is rarely dealing with re-rolling segment due to quality issues. On the other hand, even if South Korean suppliers are not able to take a decent market share from local mills, their activity will put additional pressure on domestic prices.

In 2014, Turkey imported 182,000 t of HRC ex-South Korea, while in January-February alone the number was 74,000 t.

Source: Metal Expert.

Iran sanctions could ease, improvement of steel sector expected in 2016

A possible removal of international sanctions against Iran, agreed during another round of negotiations on Iranian nuclear programme, finished on April 2, will open up new opportunities for the country’s national economy, including steel sector.

One opportunity that the lift of sanctions gives is access to foreign investments and better financing of joint projects with other countries that were launched earlier. In particular, these steps open the door to projects held by the Iranian Mines and Mining Industries Development and Renovation Organization (IMIDRO) to ramp up production of square billet (5.6 million t), which are partly funded by Chinese partners. Furthermore, the company’s management is in talks to attract investments from India and Kazakhstan, but details of the project are unknown so far, ISNA reports.

The lift of sanctions will also erase the problem with international payments, primarily owing to connection of Iranian banks to the SWIFT system. Given plans of Iran to raise exports to 10 million t by 2025, this will help liven up foreign trading activity of Iranian steel market players. Positive sentiments in the market have already awakened import buying interest, in CIS material in particular. “Iranian buyers have livened up and started to send inquiries at the end of the week,” a Kazakh producer has commented to Metal Expert. Besides, connection to the SWIFT will accelerate return of earlier frozen assets and allow banks to make direct payments. So far some assets of the Central Bank of Iran (CBI), amounting to $490 million, have been deblocked in Japan during talks in Lausanne, and deposited to the account in the Oman Central Bank.

Source: World Steel News.

As rolled hard strips.

These are basically as rolled hard steel strip. To achieve a desired hardness, an annealed material of suitable thickness is taken and rolled down to the required thickness, to achieve that required hardness. After rolling, the material is pinch passed and final annealing is not required. To choose the correct thickness (for reduction to the desired thickness) is a matter of expertise.
Grades: This strip is available in low, medium & high carbon grades.

Applications: It is suitable for components where formability is limited. It saves the extra annealing cost. The strip is directly punched & formed and if required sent for heat treatment.

Cold drawing of steel.

This is a process for changing the cross-sectional size or profile of steel in bar or coil by pulling (drawing) the unheated metal through a die of smaller diameter and/or different cross-section. The advantages include improved surface condition, good tolerances and better mechanical properties – such as higher tensile strength.

Shaped bar and wire are the principal steel products made by this technique.

In the production of wire a succession of drawing operations can reduce wire rod down to diameters of as little as a few microns (one thousandth of a mm). Cold drawn bar typically has round, square, hexagonal and octagonal profiles, but the larger the diameter, the closer the profile of the feedstock must be to the final shape, since there are strict limitations on what changes can be achieved with unheated steel.

In general the term cold drawing relates to long products. It should not be confused with deep drawing of sheet or drawn-over-mandrel tube making (see separate entries).