Latest news with #steelproduction
Japan Times
4 days ago
- Business
- Japan Times
Nippon Steel to invest in electric furnaces with government support
Nippon Steel said Friday that it will invest ¥868.7 billion in introducing electric furnaces at its domestic steel plants, with support from the industry ministry. The ministry announced that it will provide up to ¥251.4 billion in aid for the company's changeover from blast furnaces. Since the steel-making process produces a large amount of carbon emissions, steelmakers are now taking measures to decarbonize, including replacing blast furnaces, which use coal and other substances to make steel, with electric furnaces. Nippon Steel aims to cut its carbon dioxide emissions by 30% in 2030 compared with levels in 2013, and realize net-zero emissions in 2050. The company is set to spend ¥630.2 billion in installing one electric furnace at its Kyushu Works' Yawata Area in Kitakyushu, ¥140 billion for adding one electric furnace at the Hirohata Area of its Setouchi Works in Himeji, Hyogo Prefecture, and ¥98.5 billion in renovating and restarting one existing electric furnace at its Yamaguchi Works in the city of Shunan, Yamaguchi Prefecture. After starting steel production by the second half of fiscal 2029, the three electric furnaces are expected to have a total annual output of 2.9 million tons.
CNA
4 days ago
- Business
- CNA
Nippon Steel to spend $6 billion on decarbonisation efforts at three plants
TOKYO :Nippon Steel plans to invest nearly 870 billion yen ($6.05 billion) to introduce electric furnaces at its three domestic plants to reduce carbon emissions, the company said on Friday. Japan's government plans to subsidise as much as 251 billion yen of the steelmaker's decarbonisation efforts focused on the three plants by the 2029 fiscal year, Nippon Steel said in a statement. Following the investments, Nippon Steel will add around 2.9 million metric tons of new steel production capacity, it said. ($1 = 143.7300 yen)
CNA
6 days ago
- Business
- CNA
Steel industry doubts China will enforce output cut plans
SINGAPORE: China says it wants to cut crude steel output this year but traders and steelmakers are betting Beijing won't follow through as industry profitability improves and trade tensions weigh on the economy. The world's largest steel producer in March unveiled plans to cut output and restructure its giant steel sector to address overcapacity which has long plagued the industry and is spilling over into export markets and angering trade partners. But at the flagship Singapore International Ferrous Week conference, conversations with fifteen traders, steelmakers, analysts and hedge funds all had the same message: the cuts are unlikely to be enforced. Profitability is improving across the industry driven by unexpectedly strong demand, undercutting some of the logic of reining in output in the first place, they said. In the year to April industry profits hit 16.9 billion yuan (US$2.35 billion), versus a loss of 22.2 billion yuan in the same period last year. Participants bet the turnaround will make Beijing less likely to crack down, especially as the trade war with the United States makes policymakers sensitive about maintaining economic growth. There's even less incentive for the local governments where many of these steel mills are an important contributor to the growth targets officials are assessed against. "When mills could make some money after grappling with survival in the past two years, no one has the motivation to slash output," said a manager from a medium-scale Chinese steelmaker on condition of anonymity.
Reuters
6 days ago
- Business
- Reuters
Steel industry doubts China will enforce output cut plans
SINGAPORE, May 28 (Reuters) - China says it wants to cut crude steel output this year but traders and steelmakers are betting Beijing won't follow through as industry profitability improves and trade tensions weigh on the economy. The world's largest steel producer in March unveiled plans to cut output and restructure its giant steel sector to address overcapacity which has long plagued the industry and is spilling over into export markets and angering trade partners. But at the flagship Singapore International Ferrous Week conference, conversations with fifteen traders, steelmakers, analysts and hedge funds all had the same message: the cuts are unlikely to be enforced. Profitability is improving across the industry driven by unexpectedly strong demand, undercutting some of the logic of reining in output in the first place, they said. In the year to April industry profits hit 16.9 billion yuan, opens new tab ($2.35 billion), versus a loss, opens new tab of 22.2 billion yuan in the same period last year. Participants bet the turnaround will make Beijing less likely to crack down, especially as the trade war with the United States makes policymakers sensitive about maintaining economic growth. There's even less incentive for the local governments where many of these steel mills are an important contributor to the growth targets officials are assessed against. "When mills could make some money after grappling with survival in the past two years, no one has the motivation to slash output," said a manager from a medium-scale Chinese steelmaker on condition of anonymity. Chinese crude steel output rose 0.4% between January and April this year. In China, the absence of public orders from Beijing since the March announcement was a sign for many at the conference that the output cuts will be limited or only halfheartedly enforced. Chinese consultancy Fubao said in late April that while provincial targets for output cuts had been finalised, there were doubts about whether steel mills would actually follow through. "Some provincial governments will rely on steel to help with GDP," said Mengtian Jiang, chief ferrous metals analyst of Harizon Insights. "Steel mills are making money especially with domestic coking price having almost halved, so I do not see that China's steel output will be down much." Steel exports may fall 3%-4% this year, but that will not impact China's steel output much, she added. ($1 = 7.1976 Chinese yuan renminbi)
Yahoo
24-05-2025
- Business
- Yahoo
JSW Steel Ltd (BOM:500228) (Q4 FY 2025) Earnings Call Highlights: Record Production and ...
Consolidated Revenue: INR44,819 crores for Q4 FY '25. Operating EBITDA: INR6,378 crores for Q4 FY '25. EBITDA Margin: 14.2% during the quarter. Profit After Tax: INR1,501 crore, doubled over the previous quarter. Crude Steel Production: 7.63 million tonnes, up 12% Y-o-Y and 9% Q-o-Q. Steel Sales: 7.49 million tonnes, up 11% Y-o-Y and 12% Q-o-Q. Domestic Sales: 6.72 million tonnes, grew by 30% Y-o-Y and 12% Q-o-Q. Net Debt Reduction: INR4,350 crores due to better cash generation and working capital release. CapEx: INR3,700 crores during the quarter and close to INR15,000 crores for FY '25. JSW One GMV: INR12,500 crores for FY '25, up 2.4x Y-o-Y. Overseas Operations EBITDA: Baytown mill USD4.4 million; Ohio operations reduced losses to USD7.5 million; Italian operations EBITDA loss of EUR 0.7 million. Warning! GuruFocus has detected 9 Warning Signs with BOM:500228. Release Date: May 23, 2025 For the complete transcript of the earnings call, please refer to the full earnings call transcript. JSW Steel Ltd (BOM:500228) reported the highest-ever quarterly crude steel production at 7.63 million tonnes, marking a 12% year-over-year increase. The company achieved its highest-ever steel sales at 26.5 million tonnes for FY '25, with domestic sales growing by 30% year-over-year. JSW Steel Ltd (BOM:500228) launched GreenEdge, a low-emission steel brand, contributing to over 1 million tonnes of CO2 savings. The company received responsible steel certification for four plants and was recognized as a 2025 Sustainability Champion by the World Steel Association. JSW Steel Ltd (BOM:500228) plans to enhance raw material security by commissioning new mines in Karnataka and Goa, targeting significant production increases. The company faced a sharp decline in exports by 27% to 6.3 million tonnes, resulting in India remaining a net importer for the second consecutive year. JSW Steel Ltd (BOM:500228) is dealing with legal challenges regarding its resolution plan for BPSL, with the Supreme Court rejecting the plan and directing refunds. The Italian operations were impacted by delayed orders and rail system congestion, resulting in an EBITDA loss of EUR 0.7 million. The company's net debt increased by around INR4,350 crores, despite better cash generation and working capital release. There are ongoing geopolitical tensions and tariff escalations affecting the global economy, which could impact future growth. Q: Can you provide clarity on the Supreme Court's decision regarding BPSL and its impact on production and sales? A: The matter is sub judice, but we have implemented the resolution plan in compliance with the law. We have strong grounds for legal remedies, and production and sales at BPSL continue as we maintain control of the assets. - Jayant Acharya, CEO, Joint MD & Whole-Time Director Q: What is the expected contribution of JVML to standalone sales, considering the BF-3 shutdown? A: JVML is expected to contribute about 3.5 million tonnes of incremental production this year. Despite the BF-3 shutdown, we anticipate improved production due to the ramp-up at JVML and other operational improvements. - Jayant Acharya, CEO, Joint MD & Whole-Time Director Q: Could you elaborate on the cost and realization outlook for the near term? A: We anticipate a $10 to $15 reduction in coking coal costs, and JVML's stabilization will lower costs. Renewable energy initiatives will also reduce power costs. We expect a price improvement of INR3,200 to INR3,250 per tonne in Q1 FY '26. - Jayant Acharya, CEO, Joint MD & Whole-Time Director Q: What is the strategy for iron ore sourcing and the expected captive versus non-captive mix for FY '26? A: We aim for 40% of our iron ore requirement to be met from captive sources in FY '26, up from 37% in FY '25. We are increasing production from Karnataka and starting operations in Goa to offset surrendered mines. - Jayant Acharya, CEO, Joint MD & Whole-Time Director Q: How do you plan to manage the debt levels given the current net debt-to-EBITDA ratio? A: The ratio has improved from 3.57 to 3.34. As EBITDA normalizes with improved pricing, we expect further improvement in these ratios. The increase in net debt is primarily due to a lower EBITDA base, which is expected to correct. - Swayam Saurabh, CFO For the complete transcript of the earnings call, please refer to the full earnings call transcript. This article first appeared on GuruFocus. Sign in to access your portfolio
