| News - 12 Mar, 2010 |
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| 1. Iron ore price negotiations - Vale tells China to drop benchmark - 12 Mar, 2010 | Top |
Bloomberg cited Mr Hu Kai an analyst at research company UC361.com as saying that Vale SA, the largest iron ore producer, told Chinese steelmakers it plans to drop a 40 year tradition of setting annual prices in favor of shorter contracts.
Mr Hu said from Shanghai, citing mills he didn’t name, that the Rio de Janeiro based company sent a note to major Chinese steelmakers, who haven’t decided what their responses will be.
Nikkei English News reported, without saying where it obtained the information that Vale is seeking to raise contract iron ore prices by more than 90% for the second quarter of 2010 in negotiations with Japanese steelmakers.
(Sourced from Bloomberg)
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| 2. Baosteel hikes wire rod price for April - 12 Mar, 2010 | Top |
China leading steelmaker Baosteel has announced to raise wire rod price for Apr production, signaling a trend of recovery of steel market.
The steelmaker has pulled up Apr prices for wire rod products by CNY 150 per tonne to CNY 300 per tonne, but it has not released prices for the most-watched sheet/plate. Market rumor is circulating that Baosteel has decided to lift the prices with possible upswings of about CNY 300 per tonne. Official announcement may come soon.
As steel market recovery after the holiday receives much concern and Baosteel's price is considered a benchmark in the industry, price hikes, even for wire rod products, which only account for a small part of its total production lines, will boost market confidence significantly. Industry analysts point out the price rise is partly resulted by production costs, but bloomy downstream demand is worth more concern.
Baosteel's sheet/plate for automobiles and household appliances still eye undersupply at the moment. Automobile productions and sales surged 92% and 84% respectively to 2.821 million units and 2.8757 units in January to February. A Baosteel official has disclosed that the steelmaker has restricted some silicon steel productions so as to meet demand for automobile sheet/plate.
Steelmakers were weighed on by high costs and huge stocks in February but steel price started to post a clear uptrend early this month.
Most traders reveal market demand is now reviving slightly as temperature rises and downstream purchasing is also increasing. Prices for wire rod and rebar have commenced to climb, implying a temporary trend of recovery.
(Sourced from Shanghai Securities News)
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| 3. Steel prices unlikely to stay high - Arab steel conference - 12 Mar, 2010 | Top |
AP reported that increase in steel consumption projected in the Arab World in 2010, as higher oil prices provide funds for transport infrastructure and housing projects.
Industry officials and traders said at an Arab steel conference in Morocco that a jump in steel prices at the start of 2010 looks hard to sustain as growth in global demand remains weak.
Several top steel producers have announced price increases since the start of the year after a sharp rise in raw material costs such as iron ore and scrap metal. But uncertainty over whether buyers grappling with big stockpiles will accept the price increase dogs the sector and analysts say a strong rebound in demand this year is unlikely.
Industry sources said that Arab World steel consumption would grow 10% this year on 2009's consumption of 41 million tonnes as higher oil prices provide funds for transport infrastructure and housing projects. But longer term prospects remain uncertain, given customs barriers and a ramp up in production by many local producers.
Delegates at an the conference in Marrakesh said that many traders were expecting buyers in the world's top steel consumer China to reenter the market after the Chinese new year in mid February, helping support the higher prices.
Mr Roberto Rubini regional manager at traders Coutinho and Ferrostaal said that "It didn't happen. One reason for the rise in prices is raw material costs, but I think there was also a political move to boost the market. With no demand behind it, this kind of move is not useful."
Mr Bilal Alk Sheikha VP of procurement and logistics at Saudi firm Attieh Steel said that "People should be careful the situation is not stable. Demand is weak and costs too high. There is risk in China, which aims to control growth.
(Sourced from Associate Press)
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| 4. Turkey steel bar exports sees 55pct increase in February - 12 Mar, 2010 | Top |
Steel Orbis reported that in February, Turkey's steel bar exports witnessed a significant increase of 55.26% MoM after posting MoM declines for the previous three months. Particularly in January, the country's steel bar exports had decreased over 39% compared to the previous month.
According to the data provided by the Istanbul Mineral and Metals Exporters' Association, in February this year Turkey's total steel bar exports, including rebar, amounted to 487,785 tonnes, decreasing by 48.41% YoY and up by 55.26% MoM. Meanwhile, the revenue generated by these exports totaled USD 244.65 million declining by 45.46% compared to February 2009 and up 60.16% MoM.
In February, the average export price of Turkish steel bar amounted to USD 502 per tonne increasing by USD 15 per tonne or 3.15% from January levels and up USD 25 per tonne or 5.34% from February 2009.
| Country | Quantity
| | Egypt | 89,037
| | UAE | 64,865
| | Singapore | 47,342
| | Yemen | 46,545
| | Israel | 44,673
| | Libya | 27,912
| | Iraq | 27,768
| | Ethiopia | 15,261
| | Jamaica | 13,625
| | Turkmenistan | 11,155 |
In tonnes
Meanwhile, in the first 2 month 2010, Turkey's steel bar exports declined 57.98% reaching 802,248 tonnes, while the revenue for these exports stood at USD 397.55 million, decreasing by 56.19% both compared to the corresponding period of 2009.
(Sourced from Steel Orbis)
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| 5. Indian long product price index improves by 61 points - 12 Mar, 2010 | Top |
The Indian Long Product Price Index ILPPI went up by 61 points whereas Indian Flat Product Price Index IFPPI also surge by 16 points. The overall Indian Steel Price Index INDSPI rise by 40 points
| Class | 10-Mar | 11-Mar | Change | %
| | ILPPI | 7121 | 7182 | 61 | 0.9%
| | IFPPI | 8011 | 8027 | 16 | 0.2%
| | INDSPI | 7545 | 7585 | 40 | 0.5% |
ILPPI - Long Product Price Index
IFPPI - Flat Product Price Index
INDSPI - Indian Steel Price Index
Long Products
| Category | 10-Mar | 11-Mar | Change | %
| | PI - TMT | 6848 | 6903 | 55 | 0.8%
| | PI - WRC | 7678 | 7750 | 73 | 0.9%
| | PI - Angle | 6719 | 6774 | 55 | 0.8%
| | PI - Channel | 6775 | 6837 | 62 | 0.9%
| | PI - Joist | 6250 | 6291 | 41 | 0.7% |
PI - Product Index
Flat Products
| Category | 10-Mar | 11-Mar | Change | %
| | PI - Narrow Plates | 7628 | 7654 | 25 | 0.3%
| | PI - Wide Plates | 7911 | 7918 | 7 | 0.1%
| | PI - Hot Rolled | 7808 | 7828 | 20 | 0.3%
| | PI - Cold Rolled | 8574 | 8580 | 5 | 0.1%
| | PI - Galvanized | 8682 | 8698 | 16 | 0.2% |
PI - Product Index
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(Sourced from www.steelprices-india.com)
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| 6. Pencil ingot price show mixed trend on Mar 11 - 12 Mar, 2010 | Top |
Pencil ingot
| Location | Change
| | Ahmedabad | 0
| | Bhiwari | 0
| | Durgapur | 554
| | Ghaziabad | 600
| | Hyderabad | 1000
| | Jaipur | 1000
| | Jamshedpur | 0
| | Kanpur | 267
| | Kolkata | 0
| | Mandi | 462
| | Mumbai | 500
| | Muzzafarnagar | 711
| | Nagpur | 647
| | Raigarh | -277
| | Raipur | 924
| | Rourkela | 462
| | Rudrapur | 533 |
Change is on 11th March as compared to 10th March 2010
Change is in INR per tonne
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| 7. Sponge iron price up in major places on Mar 11 - 12 Mar, 2010 | Top |
Sponge iron
| Location | Change
| | Bellary | 200
| | Kolkata | 500
| | Raigarh | 0
| | Raipur | 800
| | Rourkela | 1200 |
Change is on 11th March as compared to 10th March 2010
Change is in INR per tonne
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(Sourced from www.steelprices-india.com)
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| 8. Rebar (TMT) price movement in India on Mar 11 - 12 Mar, 2010 | Top |
TMT
Fe 415
12mm
| Location | Change
| | Ahmedabad | 520
| | Bangalore | 0
| | Chennai | 0
| | Delhi | 540
| | Hyderabad | 1500
| | Indore | 800
| | Kanpur | 350
| | Kolkata | 0
| | Mandi | 312
| | Mumbai | 563
| | Raipur | 1040
| | Rudrapur | 200 |
Change is on 11th March as compared to 10th March 2010
Change is in INR per tonne
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(Sourced from www.steelprices-india.com)
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| 9. Plate cuttings prices surges at Alang - 12 Mar, 2010 | Top |
| Product | Grade | Size | Change
| | Plate cuttings | Rolling | 1" | 500
| | Ship Scrap | Melting | Mixed | 600 |
Change is on 11th March as compared to 10th March 2010
Change is in INR per tonne
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(Sourced from www.steelprices-india.com)
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| 10. Melting scrap price increases in Hyderabad and Mandi - 12 Mar, 2010 | Top |
Melting scrap
80:20
HMS
| Location | Change
| | Chennai | 0
| | Hyderabad | 500
| | Kandla | 200
| | Kanpur | 89
| | Kolkata | 0
| | Mandi | 370
| | Mumbai | 0
| | Rudrapur | 89 |
Change is on 11th March as compared to 10th March 2010
Change is in INR per tonne
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(Sourced from www.steelprices-india.com)
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| 11. Wire rod prices up in Raipur and Rudrapur - 12 Mar, 2010 | Top |
WRC
SWR14
5.5/6
| Location | Change
| | Chennai | 0
| | Delhi | 0
| | Kanpur | 444
| | Kolkata | 0
| | Raipur | 888
| | Rudrapur | 622 |
Change is on 11th March as compared to 10th March 2010
Change is in INR per tonne
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(Sourced from www.steelprices-india.com)
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| 12. Steel angle prices up in major places on Mar 11 - 12 Mar, 2010 | Top |
ANGL
GR A
65X6
| Location | Change
| | Ahmedabad | 0
| | Bangalore | 500
| | Chennai | 0
| | Delhi | 0
| | Indore | 500
| | Kanpur | 400
| | Kolkata | 0
| | Mandi | 208
| | Mumbai | 563
| | Raipur | 1040
| | Rudrapur | 200 |
Change is on 11th March as compared to 10th March 2010
Change is in INR per tonne
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(Sourced from www.steelprices-india.com)
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| 13. Steel light channel prices update on Mar 11 - 12 Mar, 2010 | Top |
CHNL
GR A
75/100
| Location | Change
| | Ahmedabad | 0
| | Bangalore | 800
| | Chennai | 0
| | Delhi | 0
| | Indore | 500
| | Kanpur | 300
| | Kolkata | 0
| | Mandi | 208
| | Mumbai | 563
| | Raipur | 1040
| | Rudrapur | 0 |
Change is on 11th March as compared to 10th March 2010
Change is in INR per tonne
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(Sourced from www.steelprices-india.com)
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| 14. Steel joist (Beam) prices scenario in major places - 12 Mar, 2010 | Top |
JSTI
GR A
250X125
| Location | Change
| | Ahmedabad | 0
| | Bangalore | 200
| | Chennai | 0
| | Delhi | 0
| | Indore | 800
| | Kanpur | 400
| | Kolkata | 0
| | Mandi | 208
| | Mumbai | 563
| | Raipur | 1040
| | Rudrapur | 500 |
Change is on 11th March as compared to 10th March 2010
Change is in INR per tonne
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(Sourced from www.steelprices-india.com)
|
| 15. Patra (Narrow HR strips) price remains flat in Delhi - 12 Mar, 2010 | Top |
Patra
| Location | Change
| | Delhi | 0
| | Ludhiana | 0
| | Mandi | 185 |
Change is on 11th March as compared to 10th March 2010
Change is in INR per tonne
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(Sourced from www.steelprices-india.com)
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| 16. HRC prices remains flat in major places on Mar 11 - 12 Mar, 2010 | Top |
HRC
Tube
2.5x1250
| Location | Change
| | Ahmedabad | 0
| | Bangalore | 0
| | Chennai | 0
| | Delhi | 0
| | Indore | 0
| | Kolkata | 0
| | Ludhiana | 185
| | Mumbai | 0 |
Change is on 11th March as compared to 10th March 2010
Change is in INR per tonne
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(Sourced from www.steelprices-india.com)
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| 17. Narrow HR plate prices up in Chennai and Kanpur - 12 Mar, 2010 | Top |
PLTS
GR A
8x1250
| Location | Change
| | Chennai | 450
| | Kanpur | 444
| | Mumbai | 0
| | Rudrapur | 444 |
Change is on 11th March as compared to 10th March 2010
Change is in INR per tonne
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(Sourced from www.steelprices-india.com)
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| 18. Wide plate price movement on Mar 11 - 12 Mar, 2010 | Top |
PLTS
GR B
12-20x2.5
| Location | Change
| | Ahmedabad | 0
| | Bangalore | 0
| | Chennai | 0
| | Delhi | 0
| | Indore | 0
| | Kanpur | 0
| | Kolkata | 0
| | Mumbai | 0
| | Raipur | 444
| | Rudrapur | 178 |
Change is on 11th March as compared to 10th March 2010
Change is in INR per tonne
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(Sourced from www.steelprices-india.com)
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| 19. CR price movement in India on Mar 11 - 12 Mar, 2010 | Top |
CR
DSK
0.63
| Location | Change
| | Ahmedabad | 0
| | Bangalore | 0
| | Chennai | 0
| | Delhi | 0
| | Kanpur | 178
| | Kolkata | 0
| | Mumbai | 0
| | Pune | 0
| | Rudrapur | 178 |
Change is on 11th March as compared to 10th March 2010
Change is in INR per tonne
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(Sourced from www.steelprices-india.com)
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| 20. GC (HDG) prices up in Kanpur and Rudrapur on Mar 11 - 12 Mar, 2010 | Top |
GC
100Gms
0.40
| Location | Change
| | Bangalore | 0
| | Chennai | 0
| | Delhi | 0
| | Kanpur | 444
| | Kolkata | 0
| | Ludhiana | 0
| | Mumbai | 0
| | Rudrapur | 444 |
Change is on 11th March as compared to 10th March 2010
Change is in INR per tonne
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(Sourced from www.steelprices-india.com)
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| 21. Global hot band steel pricing in euphoria - 12 Mar, 2010 | Top |
SteelBenchmarker reported that US HRB spot price for March 8th 2010 surged 5.4% to USD 706 per tonne FOB the mill; for the seventh consecutive time. The Western European HRB price surged 4.2% to USD 625 per tonne, ex works; for the second consecutive time. The Chinese HRB ex works price rose 2.5% to USD 485 per tonne; for the second consecutive time. The World export HRB price rose 1.8% to USD 607 per tonne, FOB the port of export; for the eighth consecutive time.
USA
USD 706 per tonne, FOB the mill
Up by USD 36 per tonne from USD 670 two weeks ago
Up by USD 277 per tonne from the recent low of USD 429 on May 25th 2009
Down by USD 497 per tonne from the record peak of USD 1,203 on July 28th 2008
Up by USD 476 per tonne from the record low of USD 230 in December 2001
China
USD 485 per tonne, ex works
Up by USD 12 per tonne from USD 473 two weeks ago
Up by USD 94 per tonne from the recent low of USD 391 on April 13th 2009
Down by USD 248 per tonne from the record peak of USD 733 on July 14th 2008
Up by USD 238 per tonne from the record low of USD 247 in January 2002
Western Europe
USD 625 per tonne, ex works
Up by USD 25 per tonne from USD 600 two weeks ago
Up by USD 172 per tonne from the recent low of USD 453 on April 27th 2009
Down by USD 579 per tonne from the record peak of USD 1,204 on July 14th 2008
Up by USD 436 per tonne from the record low of USD 189 in December 2001
World Export Price
USD 607 per tonne, FOB the port of export
Up by USD 11 per tonne from USD 596 two weeks ago
Up by USD 213 per tonne from the recent low of USD 394 on May 11th 2009
Down by USD 506 per tonne from the record peak of USD 1,113 on July 28th 2008
Up by USD 432 per tonne from the record low of USD 175 in December 2001
(Sourced from SteelBenchmarker)
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| 22. POSCO to raise steel prices by at least 20pct in Q2 2010 - 12 Mar, 2010 | Top |
Reuters reported that POSCO will raise major steel product prices in the second quarter of 2010 by at least 20% due to higher raw material costs.
Mr Hwang Eun yeon SVP in charge of marketing strategy at POSCO said in an interview with Reuters that POSCO could not help but make its steel product pricing mechanism more short term if benchmark prices of raw material imports were determined on a shorter term basis.
(Sourced from www.reuters.com)
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| 23. BDI upward trend continues on March 11 - 12 Mar, 2010 | Top |
It is reported that on March 11th 2010, Baltic Dry Index reached 3316 points, up by 86 points as compared to March 10th 2010.
Capsize
| BCI | Change
| | SPOT 4 TCE AVG | 3894 | +171
| | INDEX | 37307 | +1838
| | March 10th 2010 | 35469 |
| | Year Ago | 28382 | |
All except INDEX in USD
Change is with respect to numbers on March 10th 2010
Panamax
| BPI | Change
| | INDEX | 4090 | +77
| | SPOT 4 TCE AVG | 32886 | +612
| | March 10th 2010 | 32274 |
| | Year Ago | 18562 | |
All except INDEX in USD
Change is with respect to numbers on March 10th 2010
Supramax
| BSI | Change
| | INDEX | 2628 | +41
| | SPOT 4 TCE AVG | 27475 | +426
| | March 10th 2010 | 27049 |
| | Year Ago | 17908 | |
All except INDEX in USD
Change is with respect to numbers on March 10th 2010
Spot 4 TC Average = Average Value of the Four Main Shipping Routes
BDI = Weighted Composite Index of BCI/BPI/BHMI
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(Sourced from www.steelprices-india.com)
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| 24. Japanese mills to raise CRGO price for Q2 - 12 Mar, 2010 | Top |
It is reported that Japanese steel mills are planning to hike its cold rolled grain oriented electrical steel export prices by USD 500 to USD 600 per tonne in the second quarter due to rise in raw material costs.
Considering volatility of raw material price, Japan's mills decided to provide three month contract for their buyers. Normally, they signed annual or half year contracts with their buyers.
Japan's mills predicted that CRGO's demands will rise thanks to recovery in electricity industries. The CRGO price is predicted to rise further in the third quarter.
(Sourced YIEH.corp)
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| 25. American H1 scrap average price up in 3 cities - 12 Mar, 2010 | Top |
It is reported that American H1 scrap average price in 3 cities of Pittsburgh, Chicago and Philadelphia has increased by USD 38 per long tonne to USD 349.5 per long tonne this week, which is the record high during this year.
US H2 scrap also increased by USD 27.5 per long tonne to USD 284.5 per long tonne.
Meanwhile, H1 scrap prices soared to USD 331.83 per long tonne, up by USD 53.33 per long tonne.
(Sourced YIEH.corp)
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| 26. NSSC to raise stainless steel prices fro March - 12 Mar, 2010 | Top |
Japan's biggest stainless steel mill, Nippon Steel & Sumikin Stainless Steel, has announced new ex work price of March 2010.
In order to offset increasing nickel costs, the price for domestic market increased over USD 55 per tonne. The company's price of 304 cold rolled stainless steel sheets was at JPY 365,000 per tonne, increased by JPY 5,000 per tonne from February.
The price of 430 cold rolled stainless steel sheets also increased by JPY 15,000 per tonne to JPY 267,000 per tonne. For export market, NSSC is targeting a price rise of up to USD 100 to USD 200 per tonne.
(Sourced YIEH.corp)
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| 27. Iron ore price negotiations - EU steel industry outraged at 90pct hike prospects - 12 Mar, 2010 | Top |
The European steel industry is outraged at the announcement by the iron ore industry to massively increase iron ore prices by 80% to 90 % compared to today’s price levels for fines and even more for lump and pellets.
EUROFER said “These increases come while the industry is still reeling from the effects of the most serious financial and economic crisis since the 1930s. European governments should be aware of the implications for the wider economy if these price increases become reality. It is striking that these price hikes are coming from companies which, even in the worst crisis in the world economy in the last 80 years show EBIT margins of up to 50% per tonne.”
EUROFER said “Increases of this magnitude will have a significant impact on steel prices and as such on the whole manufacturing and construction value chain and ultimately on the European consumer. This will reduce demand for many price sensitive products and therefore slow economic recovery or even push economies back into recession.”
It added “The steel industry is increasingly concerned at the degree of concentration in the iron ore industry. It is striking in this respect that there is little variation in the level of price increases being talked about by the large producers which dominate the iron ore industry. The European steel industry has already indicated to the European competition authorities our concerns at the excessive pricing power now held by iron ore producers.”
It also said that “This also reinforces EUROFER’s concerns about the impact of the proposed joint venture of the Australian iron ore assets of BHP Billiton and Rio Tinto which would lead to a even further concentration on the market.”
Represented by EUROFER, the European steel industry is the world leader in its sector with a turnover of EUR 190 billion and direct employment of 420,000 people, producing 200 million tonnes of steel per year.
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