seasm wk 19 - media.kallanish.com
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Page 1© Kallanish Ltd. 2021 29 Sept 2021 | Week 39
South East Asia Report
Your Weekly Update - 29 Sep 2021 - Week 39
Production1
Semis4 Raw Materials5
Flats2 Longs3
In the newsEvergrande deal settles Chinese nervesCollapsing Chinese developer Evergrande reached an agreementwith domestic bond holders ahead of a $35.9 million payment duelast Thursday. A $83.5m payment on an overseas bond was notpaid, but the company has 30 days to reach a settlement before adefault is declared. The move steadied ferrous markets which hadbeen driven aggressively lower by speculators betting on theconsequences of a default.
Huadi Nickel advances ferronickelcapacity expansion
Krakatau, Posco eye $3.7 billion flatscluster investmentHoa Phat sold 690,000t of steel in August, up 15% m-o-m, butconstruction steel sales fell 26% m-o-m and 17% y-o-y to 268,000t.These reached 5.6mt and 2.5mt over eight months, up 47% and16% y-o-y respectively. August crude steel output fell 2.7% m-o-mto 681,000t, but was up 40% y-o-y. Output over January-Augustincreased 56% y-o-y to 5.4mt. Satellite data monitored by Kallanishshowed hot metal output at Dung Quat down 2.7% m-o-m inAugust. Output at Hai Duong increased thanks to strong billetexport sales.
CSC achieves stable earnings in August
Asian steel output driven lower by China
Lockdown suppresses Vietnam’sAugust scrap imports
Taiwan’s China Steel Corporation (CSC) sold 780,776t of carbonsteel in August, down 2.4%m-o-m, and 6.5mt over January-August.August operating revenue was NTD 41.71 billion ($1.5 billion), downonly 0.4% m-o-m thanks to stronger average prices. Revenue overJanuary-August surged 48% on-year to NTD 296.87 billion. OverJanuary-August 2020 the company posted a loss due to theinfluence of Covid-19.
Hoa Phat saw its construction steel market share grow to 37% inJanuary-August, up from 28% at the start of the year. Itsconstruction steel sales fell 17% y-o-y in August to 268,000t, butJanuary-August sales gained 16% y-o-y to 2.5mt.
Vietnam’s steel scrap imports nearly halved on-month to 368,500tin August, as demand was muted by Covid-19 lockdowns. Eight-month imports still rose 18.5% year-on-year to 4.53mt.
Vietnamese steel exports grow inAugustVietnam’s iron and steel exports in August totalled 1.54mt, up33.8% m-o-m. This reached 8.54mt over January-August, up 43.4%y-o-y. The US surpassed Cambodia to become the second-largestdestination country in August, but lagged behind Cambodia overJanuary-August. China ranked first on both counts, reaching477,319t and 1.8mt respectively.
Huadi Nickel-Alloy Indonesia has commissioned its No.2ferronickel smelter, one of six new furnaces planned. The smeltercan produce ferronickel with contained nickel of 7,200 t/y.
Asian crude steel output in August fell, led by China, according tothe World Steel Association. Asian crude steel production was112.207mt in August, 7.32% down y-o-y and 3.06% m-o-m. Of thistotal, China produced 83.239mt in August, 4.09% lower m-o-m and13.22% on-year.
China releases 2021-2022 steel sectorwinter restriction planIndonesian steelmaker Krakatau Steel aims to invest $3.7 billionwith Posco next year, including $700m in hot rolled coil anddownstream capacity, and the remaining $3 billion on unspecifiedupstream facilities. The announcement came after Krakatau Steelformally commissioned a new 1.5m t/y HRC mill, bringing totalcapacity to 3.9m t/y, although utilization is understood to be low.
Hoa Phat increases construction steelmarket share
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Page 7© Kallanish Ltd. 2021 29 Sep 2021 | Week 39
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