CMC shipments boosted by Gerdau assets

Spanish Market: Metals
21/03/19

Texas-based steelmaker and recycler Commercial Metals (CMC) saw sharp jumps in rebar shipments and sales during its first full quarter to include results from mills acquired from Gerdau.

The company said sales during its second quarter of fiscal year 2019, which ended 28 February, increased by 33pc to $1.4bn from a year earlier.

Net sales at its Americas mills segment increased by 82pc to $775mn from $426mn a year earlier. Rebar shipments nearly doubled to 773,000st from 405,000st a year earlier because of the four mills acquired from Gerdau in November 2018. Merchant and other volumes grew by 15pc to 322,000st.

Overall volumes rose by 60pc to 1.1mn st from 684,000st a year earlier, while metal margins increased by 32pc to $374/st. Margins fell by $1/st from the prior quarter, when they reached their highest since 2008.

Weather and heavy rainfall in some regions impacted CMC's overall shipments, while the company said unplanned outages at its Knoxville, Tennessee, rebar operations because of gas line issues impacted production an unspecified amount.

In CMC's US recycling segment, total scrap volumes were flat year-over-year at 629,000st as an uptick in ferrous volumes offset a drop in nonferrous.

Ferrous scrap shipments rose by 10,000st from the prior year to 570,000st, while average selling prices dropped by 7pc to $266/st ($298/gt), primarily because of the "unsual" $30-40/gt drop in the domestic market in January because of a lack of export volumes, CMC said.

Nonferrous shipments fell by 6pc to 59,000st as average prices dropped to $1/lb from $1.17/lb.

Sales for the company's Americas recycling segment fell by 11pc to $287mn in the second quarter from a year earlier on lower prices for both ferrous and nonferrous scrap.

Second quarter sales in the Americas fabrication segment increased by 70pc to $531mn from a year earlier. Volumes rose by 64pc to 396,000st from 241,000st while the selling price increased by 6pc to $845/st. Wet winter weather impacted construction activity and shipments for the segment.

The company's international mill segment in Poland saw sales drop by 17pc to $175mn from $212mn a year earlier. Total volumes fell by 12pc to 304,000st, while the metal margin fell by 4pc to $244/st.

CMC sees stronger demand in the US and Polish markets where it operates over the rest of fiscal year 2019. It expects metal margins to remain stable.

Second quarter profit rose by 36pc to $13.9mn, up from $10.2mn a year earlier.

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19/04/24

India mulls using more natural gas in steel sector

Mumbai, 19 April (Argus) — India's steel ministry is considering increasing natural gas consumption in the sector as it aims to lower carbon emissions from the industry. Steelmakers held a meeting with the steel ministry earlier this month, to discuss challenges and avenues to increase gas allocation to the sector, according to a government document seen by Argus . Steel producers requested that the government set gas prices at an affordable range of $7-8/mn Btu for them, to make their gas-based plants viable, as well as for a custom duty waiver on LNG procured for captive power. India's LNG imports attract a custom duty of 2.5pc. City gas distribution firms sell gas at market-determined prices to steel companies. Representatives from the steel industry also requested for the inclusion of gas under the purview of the country's goods and service tax, and to be given higher priority in the allocation of deepwater gas, which has a higher calorific value. Deepwater gas is currently deployed mostly to city gas distribution networks. Steelmakers are currently undertaking feasibility tests for gas pipeline connectivity at various steel plants. But a gas supply transmission agreement requires a minimum five-year period for investment approval. The steel industry is heavily reliant on coal, and the sector accounts for about 8-10pc of carbon emissions in the country. A task force of gas suppliers including IOC, Gail, BPCL, Shell, and HPCL and steel producers like Tata Steel, AMNS, All India Steel Re-roller Association and the Pellet Manufacturers Association has been set up, and the team is expected to submit a report on increasing natural gas usage and lowering carbon emissions by 15 May, the government document said. This team is one of the 13 task forces approved by the steel ministry to define the country's green steel roadmap. The steel ministry aims to increase green steel exports from the country in the light of the policies under the EU's Carbon Border Adjustment Mechanism (CBAM), which will take effect on 1 January 2026. Under the CBAM, importers will need to declare the quantity of goods imported into the EU in the preceding year and their corresponding greenhouse gas emissions. The importers will then have to surrender the corresponding number of CBAM certificates. CBAM certificate prices will be calculated based on the weekly average auction price of EU Emissions Trading System allowances, expressed in €/t of CO2 emitted. This is of higher importance to Indian steelmakers as the EU was the top finished steel export destination for Indian steelmakers during the April 2022-March 2023 fiscal year with total exports of 2.34mn t, and has been the preferred choice for Indian steel exports in the current fiscal year owing to higher prices compared to other regions. Indian steelmakers have started to take steps to lower their carbon emissions by announcing collaborations with technology companies to decarbonise, and are trial injecting hydrogen in blast furnaces, and increasing the usage of natural gas in ironmaking. By Rituparna Ghosh Send comments and request more information at feedback@argusmedia.com Copyright © 2024. Argus Media group . All rights reserved.

Australia’s Pilbara Mining sees continuing Li demand

19/04/24

Australia’s Pilbara Mining sees continuing Li demand

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Coal sales at Australia’s Whitehaven fall in Jan-Mar

19/04/24

Coal sales at Australia’s Whitehaven fall in Jan-Mar

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ISRI rebrands to ReMA, drops scrap from name

18/04/24

ISRI rebrands to ReMA, drops scrap from name

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Australia provides $256mn to high-purity alumina plant

17/04/24

Australia provides $256mn to high-purity alumina plant

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