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SAIL facing order cancellations, re-scheduling due to lockdown: Report

Steel Authority of India Ltd (SAIL) has had some of its orders cancelled due to slower handling at ports because of the 21-day lockdown imposed by the central government to prevent the spread of the coronavirus in the country. The move has hit movement of goods and shipments across the country, a source, on the basis of anonymity, told news agency Reuters. The country’s largest state-owned steel company faced a marginal hit to production as some of its inventory was piled up at ports owing to the situation. Most steel ...

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Coronavirus threatens copper giant Peru’s 21-years of growth

Peru may be on track to record its first annual economic contraction in over two decades as the world’s second largest copper producer is hammered by the impact of a global coronavirus pandemic hurting commodities demand. Around the country miners have been forced to slow or suspend operations with the government strictly curbing movement and activity with military presence on the streets to halt the virus with 416 confirmed cases so far. The government of President Martin Vizcarra has decreed a state of emergency and a nightly curfew for 15 ...

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JFE to cut steel capacity, predicts record loss

JFE Holdings Inc (5411.T) said on Friday it would cut steel capacity by 13% by shutting a blast furnace by March 2024 and predicted a record annual loss because demand has been hit by the U.S.-China trade war. Japanese steelmakers have been suffering from a weak economy even before the coronavirus crisis hit. They have been affected by the trade tensions and rising costs of raw materials like iron ore, as top producer China has boosted steel output to meet infrastructure demand. They are also struggling to cope with waning ...

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India lockdown cuts steel output, softens demand outlook

India’s steelmakers have scaled back production as end-users either halt or reduce operations after a 21-day nationwide lockdown was imposed to contain the coronavirus pandemic, producer sources said. The Steel Authority of India Ltd, or SAIL, Thursday said it has “rationalized” operations at all domestic sites. A source close to the steelmaker said run rates had been cut by 30%. SAIL, which has about 21 million mt/year of crude steel production capacity across five integrated plants, said in a statement: “Capacity utilization is likely to go down during this period ...

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Coroanvirus Lockdown: Coal India relaxes payment terms, reschedule e-auctions

The world’s largest miner has also directed its subsidiary companies to extend the date for payment by successful bidders in e-auctions, in case it falls within the lockdown period. CIL has relaxed payment terms and directed the railways to defer loading of rakes for non-power buyers due to last-mile connectivity disruption following the nationwide lockdown. To protect interests of its consumers, Coal India Ltd on Thursday said it has relaxed payment terms and directed the railways to defer loading of rakes for non-power buyers due to last-mile connectivity disruption following ...

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Chinese iron ore posts first weekly loss in four on demand worries

Chinese iron ore futures marked their first weekly fall in four on Friday as the widening economic fallout from the coronavirus pandemic darkened the demand outlook for the steelmaking raw material and steel products. However, expectations for supply disruptions in the wake of lockdowns across the world to contain the contagion limited iron ore’s losses. Iron ore’s most-traded May contract on the Dalian Commodity Exchange ended a volatile session 0.2% lower at 659 yuan ($93.20) a tonne and lost 1.5% this week. The Singapore Exchange’s front-month April contract slipped 0.5% ...

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Asia’s coal markets diverge on quality lines as coronavirus hits India

Asia’s seaborne coal market is increasingly diverging between higher-quality Australian coal, where prices are holding up despite the economic shock being caused by the coronavirus, and lower-quality Indonesian fuel, which is losing ground. The price of Australian benchmark Newcastle thermal coal futures traded on the Intercontinental Exchange ended at $66.35 a tonne on Wednesday, down slightly from the prior day but up from the low so far this year of $65.15 on March 9. The contract, which covers coal with an energy value of 6,000 kilocalories per kilogram (kcal/kg), has ...

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Global Steel Industry Downturn as COVID-19 Disrupts Supply and Demand

It is said that time flies over us but leaves its shadow behind. There is certainly a grey cloud hovering over the steel industry, this month. We are in unprecedented times. Steel mills, in all regions, are shutting plants or cutting production – either voluntarily or enforced by national governments. Ordinarily, reduced demand would result in steel price reductions. However, many of the steel price references, published in MEPS International Steel Review, have held up, during most of March. Steel manufacturers are closing their facilities and workers are being sent ...

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Anglo American sees lower 2020 S African thermal coal output on coronavirus

South African miner Anglo American said Friday it expects 2020 thermal coal production to drop by 1 million-2 million mt from 2019’s 29 million mt as it reduces its workforce by as much as 70% in response to the coronavirus lockdown, stoking fears of tight supply in the near term. However, the necessary rail and port logistics infrastructure are expected to remain in operation during this period, the company said in a statement. Anglo American owns Goedehoop, Greenside, Khwezela, Zibulo, Mafube collieries and Isibonelo coal mine. Anglo American exported 19 ...

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BHP’s iron strength amid rout

BHP’s business has been resilient to the crisis so far, with the miner reporting on March 19 there had been ”no material impacts on our operations or supply chains”. Although shares in the miner have fallen more than 36 per cent because of its exposure to weak oil and copper markets, its iron ore and coking coal divisions have been among the few industries to benefit from higher prices on the back of virus-related transport restrictions in China. Almost 55 per cent of BHP’s revenue was generated from sales to ...

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Saudi struggles to find buyers for extra crude as demand dives -sources

Saudi Arabia is struggling to find customers for its extra oil as demand plummets due to the coronavirus and freight rates surge, industry sources said, undermining the kingdom’s bid to seize market share from rivals by expanding production. Royal Dutch Shell (RDSa.L) and U.S. refiners were taking less Saudi crude, Finland’s Neste was not taking any in April and Indian refiners had sought delayed deliveries, the sources said. Polish refiners were also easing up on purchases, they added. Unipec, the trading arm of Asia’s largest refiner Sinopec, has also decided ...

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Global copper mine production down 0.7% in 2019

Global copper mine production dipped last year compared with 2018, according to the most recently monthly data from the International Copper Study Group (ICSG). Copper concentrate production declined 0.6% and solvent-extraction electrowinning fell by around 1%, the ICSG reported. Chile, the world’s top copper producer, saw its production drop 1% in 2019, “mainly due to lower copper head grades and few production disruptions.” According to the U.S. Geological Survey (USGS), Chile produced 5.6 million tons in 2019, well ahead of No. 2 copper producer Peru’s 2.4 million tons. Indonesia’s output ...

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US DATA: USDA says wheat net export sales more than double on week on Chinese demand

US net export sales of wheat for the week ended March 19 more than doubled on the week to 740,048 mt as a result of demand from China, Department of Agriculture data showed Thursday. China purchased 485,000 mt of US wheat during the reporting week – the purchase came for the first time since 2017. Of the total export sales to China, 200,000 mt was for the current marketing year ending May 2020, while the rest was for the next marketing year. Under the Phase 1 trade deal signed between ...

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US Steel Imports Drop in February, Coronavirus Casts a Shadow

U.S. steel imports tumbled in February on a monthly comparison basis and were also down year over year for the first two months of 2020 – according to the latest American Iron and Steel Institute (AISI) report. The association of North American steel makers noted that total and finished domestic steel imports dropped 52.2% and 18.4% from the previous month, respectively, in February to roughly 1.5 million net tons and 1.34 million net tons, respectively. Total and finished domestic steel imports fell 21.3% and 28.7% year over year, respectively, year ...

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Exxaro will go on exporting coal amid Covid-19 lockdown

Exxaro, SA’s largest coal miner, will continue to export product out of SA to aid the government with foreign exchange during the national lockdown. In an update released to the market on Friday, Exxaro said it would be able to continue with its production activities during the 21-day lockdown, subject to the approval of an application that demonstrates that these activities are essential. Exxaro is the largest provider of coal to Eskom and the utility has confirmed that all its suppliers will be issued with the necessary permits to ensure ...

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