Under the epidemic, overseas steel companies faced difficulties

According to the latest WHO data, as of 9 a.m. Beijing time on June 29, there have been more than 9.75 million confirmed cases of new coronary pneumonia outside China. Under the influence of the epidemic, overseas steel companies are in an unprecedented predicament.

Korea

A number of steel enterprises have ceased production, reorganized, and went bankrupt

On June 16, part of the production equipment of multiple production lines of South Korea’s largest steel producer Posco started to halt for the first time since the 2009 financial crisis. Not only that, Posco Steel invested approximately RMB 2.33 billion to maintain and renovate the No. 3 blast furnace of Gwangyang Steel Plant, which was originally planned to resume production at the end of May, but it has now been postponed. In addition, Hyundai Steel, the second largest steel company in South Korea, also closed the Karatsu hot-rolled steel plant with an annual capacity of 1 million tons earlier this month. This is also the first time this steel plant has shut down since it went into operation in 2005.

In addition, according to a survey conducted by Korean media S&M, as of May this year, a total of eight steel companies in South Korea had applied for reorganization or entered the liquidation process.

Brazil

Several steel mills shut down their blast furnaces

Since the outbreak began to affect the market, Brazilian steel producers have been cutting steel production.

Brazilian steel maker Gerdau has announced several production reduction plans, including the temporary closure of a blast furnace with a capacity of 1.5 million tons.

In addition to Gerdau, Usinas Siderurgicas de Minas Gerais said it would shut down two other blast furnaces, bringing the total to four. Only one keeps running.

ArcelorMittal has begun to shut down one of its blast furnaces, which adds another blast furnace that has been in a state of interruption since last year.

India

Hundreds of steel company employees diagnosed

According to the “Economic Times” report, the leading Indian steel company JSW Steel recently had 106 employees who tested positive for the new crown pneumonia virus. JSW Steel has requested 11,000 of its 20,000 employees at its main steel plant in Bellary, Karnataka Employees work from home.

Although exports supported a large portion of production and helped offset domestic demand in the initial stages of recovery, in May, JSW Steel’s production climbed to pre-epidemic levels. Production was 1.248 million tons: capacity utilization rate rose from a low of 38% in April to 83% in May.

In addition, more than 420 people have been diagnosed with new coronary pneumonia at the Jindal Steel Plant in Tanaglu, India’s second-largest steel company.

Sweden

Sandvik announces layoffs of 429 people

Due to the uncertainty caused by the coronavirus pandemic, the Swedish engineering company Sandvik AB will lay off 429 employees in its materials technology department.

The layoffs included 349 positions in Sandviken, Sweden, and 80 positions in Hallstahammar and Surahammar. They are expected to take effect in Hallstahammar and Surahammar as early as mid-October and in Sandviken in mid-December.

The materials technology department has 2,900 employees in Sandviken and 380 employees in Hallstahammar and Surahammar.

 In March of this year, Sandvik cut the proposed dividend and the salaries of employees and senior executives to mitigate the impact of the pandemic on its operations.

United States

U.S. Steel Corporation lost 5 billion yuan in the first two quarters

A few days ago, the US Steel Corporation estimated that its adjusted EBITDA loss for the second quarter was approximately US$315 million (approximately RMB2.23 billion), far exceeding the market’s expected loss of US$86.5 million. According to previous reports, US Steel had a net loss of US$391 million in the first quarter of 2020, compared with a net profit of US$54 million in the same period in 2019. This means that US steel companies suffered losses of US$706 million (approximately RMB 5 billion) in the first two quarters. The reason for the loss is due to the impact of the new crown virus, part of the steelmaking business was idle in the quarter.