Steel Production News

19 May 2020

Port of Indiana-Mt. Vernon Makes ‘Next Generation’ Terminal Upgrades

(Photo: Port of Indiana-Mount Vernon)

A  recently completed a $2 million capital improvement project aims to attract more cargo to one of the nation’s largest inland ports.Situated 153 miles from the confluence of the Ohio and Mississippi Rivers, the Port of Indiana-Mount Vernon connects the Ohio River Valley region’s agriculture, coal and manufacturing industries to the rest of the world via year-round access to the Gulf of Mexico and Great Lakes through the inland waterways system.Each year, more than 3,600 barges…

26 Mar 2020

MAN Cryo Develops Liquefied Methane Terminal in Swedish Port

MAN Energy Solutions has been comissioned to develope and construct a liquefied methane terminal in the port of Oxelösund, Sweden  (Photo: MAN Energy Solutions)

OxGas, a company fully owned by the Port of Oxelösund in Sweden has commissioned MAN Energy Solutions to act as “owners engineer” in the development and construction of a multi-functional terminal for liquefied methane based fuels in the port of Oxelösund. The terminal will be designed to feed both liquefied natural gas (LNG) and green methane derived from bio gas to SSAB ’s steel production in Oxelösund, and to re-distribute it via train and trailers to other parts of Sweden.The…

19 Mar 2020

Shipping Not Immune to a Pandemic -BIMCO

© donvictori0 / Adobe Stock

The World Health Organization (WHO) has declared the outbreak of the novel coronavirus a pandemic. There is little doubt that this will have significant implications for the shipping industry. But to what extent? BIMCO expects that the strict containment measures imposed by governments around the world will result in substantially lower global economic growth and consequentially, lower demand for shipping. Container and dry bulk shipping are at the front line when it comes to feeling the fallout…

13 Feb 2020

Baltic Index Remains Flat

© Infinitum Produx / Adobe Stock

The Baltic Exchange's main sea freight index remained flat on Thursday, as higher rates for panamax vessels offset weaker rates for other vessel categories.The Baltic index, which tracks rates for capesize, panamax and supramax vessels that ferry dry bulk commodities, was unchanged at 421.The main index slid to a near 4-year low of 411 earlier this week.The capesize index fell 25 points to negative 284.Average daily earnings for capesizes, which typically transport 170,000-180…

05 Feb 2020

Philippines Ports Open to All Ships Despite Virus Fears

© yooranpark / Adobe Stock

The Philippines said on Wednesday its ports remain open to all ships, even those from China, in order not to disrupt the cargo supply chain, but the crew of vessels arriving from the coronavirus-hit nation will be barred from disembarking.All foreigners traveling from China and its two special administrative regions - Hong Kong and Macau - are currently barred from entering the Philippines amid a fast-spreading coronavirus outbreak that has killed nearly 500 people in China.A Chinese man who arrived from China's Wuhan city, where the virus emerged last year, has also died in the Philippines.Co

04 Feb 2020

Baltic Index Down on Virus Fears

© MagioreStockStudio / Adobe Stock

The Baltic Exchange's main sea freight index dropped for the 13th consecutive session on Tuesday as waning demand across vessels and the coronavirus outbreak dampened sentiment.The Baltic index, which tracks rates for capesize, panamax and supramax vessels to ferry dry bulk commodities, fell 13 points, or 2.8%, to 453.The capesize index decreased 31 points to a negative 133, a fresh all-time low.Average daily earnings for capesizes, which typically transport 170,000-180,000 tonne cargoes including iron ore and coal…

17 Jan 2020

World Seaborne Coal Trade Rose 0.7% in 2019

©  jeayesy / Adobe Stock

Seaborne coal trade around the world grew 0.7% last year, helped by higher output in China and Indonesia and more export activity by Indonesia, Australia, Russia and Canada, Germany's VDKI coal importers lobby said on Friday.Imports and exports, counted together, rose to 1.218 billion tonnes from 1.210 billion tonnes in 2018, VDKI Managing Director Franz-Josef Wodopia said in an speech made available to Reuters, citing VDKI estimates.Within the 2019 total, trade in coking coal used for steelmaking dropped by 1% to 287 million tonnes as steel production declined, the Verein der Kohlenimporteure

18 Dec 2019

BIMCO: Supply & Demand Trending Off-Balance

Source: BIMCO, Clarksons, IMF

One of the most worrying trends that has developed recently - which will affect shipping demand in the years to come - is the falling trade-to-GDP ratio. The falling ratio can be explained by slowing globaliztation as well as increasing protectionist measures being implemented around the world, spear headed by the US. The raised barriers to trade are here to stay as we enter a new decade, with the shipping industry stuck with the consequences.The trade war is the clearest example of these extra barriers to trade…

22 Nov 2019

BIMCO: Chinese Steel Production Declines

Source: BIMCO

Chinese steel production dropped by one million (1m) tons, a decline of 1.2%, compared to October last year. China produced 81m tonnes of crude steel in October 2019. This is the first decline in steel production year-on-year (y-o-y) since December 2017.The story unfolds quite differently when looking at the accumulated volumes of crude steel production. In total, China has produced 829m tonnes of crude steel through the first 10 months of 2019, an increase of 6% when compared to the same period last year.In fact…

09 Oct 2019

Baltic Index Rises on Uptick in Capesize Demand

© Zdenar Adamsen / Adobe Stock

The Baltic Exchange's main sea freight index, which tracks rates for ships ferrying dry bulk commodities, jumped on Wednesday, on stronger demand for capesize vessels driven by a seasonal uptick in Brazilian iron ore exports.* The Baltic index, which reflects rates for capesize, panamax and supramax vessels, rose 72 points, or 4%, to 1,873, its biggest daily percentage gain since Aug. 30.* The capesize index jumped 177 points, or 5.8%, to 3,208, recording its steepest percentage rise in over five weeks.* The average daily earnings for capesizes…

02 Oct 2019

Engie's Tractebel Unveils Hydrogen Platform

The platform model from Tractebel contains a complete plant for the industrial production of CO2-neutral “green” hydrogen from offshore wind energy. Image: Tractebel

Tractebel Engineering GmbH and Tractebel Overdick GmbH are developing a concept for an offshore platform which makes it possible to produce hydrogen from offshore wind energy at an industrial scale using electrolysis.The companies, both part of French energy group Engie SA, announced that the concept consists of an up to 400-MW plant for the production of renewable hydrogen via electrolysis at an industrial scale.This kind of plant exceeds the output of previous technologies many times over.

19 Sep 2019

BIMCO Pessimistic on Dry Bulk Market

Graphs: BIMCO

BIMCO expects the fundamental market balance in the dry bulk shipping to deteriorate in 2019 which will do nothing to improve freight rates as the 2020 sulfur cap nears.Earnings for Capesize vessels have continued their roller-coaster ride, reaching their highest level since the end of 2013, at USD 36,101 per day on 2 September 2019. Between 2 April, the low point of the year so far, and 2 September rates have risen 943%, into solid profit-making territory.The strong increase in Capesize and Panamax earnings reflects a change in the market dynamics since the beginning of the year.

28 Aug 2019

RMK: Targeting “Next Wave of Tanker Demand” in 2021-22

Launched on June 12, 2019, Cosima PG is being built for a European client, to be delivered in November 2019.
Photo: RMK Marine

RMK Marine Shipyard is located in the Tuzla/Istanbul, Turkey, since 1997 as part of the Koc Group of Companies (https://www.koc.com.tr/en-us) which is Turkey’s biggest conglomerate. It specializes in shipbuilding as well as super/mega yacht refit, conversion and new building projects. On the shipbuilding side, specialty, high-temperature product tankers, such as asphalt and bitumen, as well as chemical and oil products tankers have been a staple of RMK Marine. Since 1997, RMK…

19 Aug 2019

Baltic Index Snaps 7-day Win Streak as Capesize Drags

AdobeStock / © Igor Strukov

The Baltic Exchange's main sea freight index fell on Monday, breaking a seven-day winning streak as rates for capesize vessels eased.The Baltic index, which tracks rates for ships ferrying dry bulk commodities, fell 21 points, or 1%, to 2,067 points.The capesize index fell 98 points, or 2.6%, to 3,728 points. Average daily earnings for capesizes, which typically transport 170,000 tonne-180,000 tonne cargoes such as iron ore and coal, fell $743 to $28,881.Dalian iron ore futures gave up early gains and ended lower on Monday…

13 Aug 2019

U.S.-Flag June Laker Cargo Up 2.3 PCT

File Image (Credit: Great Lakes Fleet)

U.S.-flag Great Lakes freighters (lakers) moved 9.9 million tons of cargo in June, an increase of 2.3 percent from a year ago. The June float was, however, a near mirror image of the month’s 5-year average.Iron ore cargos for steel production totaled 5.1 million tons, an increase of 10.5 percent from 2018, but a 7.6 percent decrease from June’s 5-year average. Coal loads totaled 1.3 million tons, a decrease of 5.2 percent from 2018 and 24.2 percent from the month’s 5-year average.Year-to-date U.S.-flag cargo movement stands at 32.3 million tons…

28 Jun 2019

U.S.-flag Cargo Movement on Great Lakes Up

Great Lakes Bulker. Photo Credit:  Mike Gibby Besko/ Lake Carriers’ Association

U.S.-flag Great Lakes freighters (lakers) moved 10.6 million tons of cargo in May, an increase of 11.9 percent from last year. According to Lake Carriers’ Association (LCA) represents 13 American companies that operate 46 lakers on the Great Lakes, the May float was ahead of the month’s 5-year average by 8.4 percent.Iron ore cargos for steel production totaled 5,590,145 tons, an increase of 677,194 tons from May of 2018.Coal shipments were little changed from a year ago. Loadings totalled 1,381,110, a decrease of 24,879 tons, roughly one cargo of a mid-sized self-unloader.

26 Jun 2019

Water Outflow on Seaway Now Above 10,400 CMS

Photo courtesy of Chamber of Marine Commerce

The Chamber of Marine Commerce supports the International Lake Ontario-St. Lawrence River Board’s decision Friday to continue flow rates from the Moses-Saunders dam at 10,400 cubic meters per second (CMS).Maintaining the 10,400 CMS outflow still results in a significant cost to the economy, with an estimated $2.3 million to $3 million in business revenues lost for every day it’s in place due to delays for all ship transits through the Seaway.The Chamber’s ship operators are following…

12 Jun 2019

Fleet Growth to Outstrip Demand: BIMCO

Graphs: BIMCO

Fleet growth expected to outstrip demand growth in 2019 and 2020, making the near future look unappealing, says BIMCO.In the first four months of 2019, yards delivered 10m DWT of newbuilt dry bulk shipping capacity. The demolition of 3.9m DWT limited the immediate negative impact, but even a fleet growth of 0.7% harms the market, as cargo demand is seasonally low.Capesize accounted for 87% of the demolished capacity pushed out of the market, as freight rates fell and the outlook turned bleaker.Because of this unexpectedly dramatic start to the year…

22 May 2019

Dry Bulk Fleet Utilization Falls 3.7% in Q1

Pic: Golden Ocean

Global dry bulk fleet utilization (calculated as total demand in tonne miles transported divided by total available fleet capacity) dropped by 3.7% in the first quarter of 2019, reflecting the trend observed in the rate environment, said Golden Ocean Group (GOGL),  Bermuda registered, Norway based dry bulk shipping company.According to Maritime Analytics, global fleet utilization was 82.1% in the first quarter of 2019, down from 85.8% in the fourth quarter of 2018 and 85.1% in the first quarter of 2018.According to the same source…

18 Apr 2019

Volume Rises at Port of Rotterdam

Pic: Port of Rotterdam

Port of Rotterdam posted a record overall freight tonnage in the first quarter of 2019, up 5.1% on the same period last year, thanks to strong growth in container traffic.In total, 123.9 million tonnes were handled compared with 117.8 million tonnes in the same period in 2018."The increase mainly concerned the throughput of containers (+7.3% in TEU, +5.9% in tonnes) and fuels. Mineral oil products, iron ore and scrap throughput fell," said a press release from the largest port in Europe…

17 Apr 2019

“It’s the steel production, stupid!”

Peter Sand, BIMCO

BIMCO's Peter Sand, in a new report, weighs in on the implications for the Dry Bulk sectors.Chinese imports of iron ore keep falling, while its crude steel production keeps growing. China’s increased use of scrap metal for its production of crude steel is fundamentally critical to the dry bulk shipping industry. Mostly Capesize ships are impacted by this, way beyond the temporary iron ore export disruptions in Brazil and Australia.Chinese steel production grew by a massive 12.6 million tonnes (+9.2%) in the first two months on 2019 as estimated by China Iron and Steel Association (CISA).

17 Jan 2019

EU Takes Aim at Turkish Steel Sector Buckling Under Trump Tariffs

The European Commission's move to extend its steel import restrictions threatens to force Turkish mills, already buckling under the weight of U.S. tariffs, to cut production further or in some cases close down, sources said.The Commission said on Wednesday it will extend and beef up its existing "safeguard" steel import caps until July 2021 to counter concerns that European Union markets are being flooded with steel no longer being exported to the United States.For Turkey's vast steel sector, the fourth largest contributor to the country's economy, the caps could prove particularly painful as the EU has given it additional "country-specific" quotas.Under the safeguards…

14 Jan 2019

NASSCO Expands Ships Production Capacity

Kevin Graney, President of General Dynamics NASSCO, addresses a crowd of shipbuilders as the company commissioned a new panel line in the San Diego shipyard January 11, 2019. Photo: General Dynamics NASSCO

National Steel and Shipbuilding Company (NASSCO) held a ribbon-cutting ceremony on Friday to commission its new panel line, which expands steel production capabilities for the construction of commercial and government ships in San Diego.The American shipbuilding company with three shipyards located in San Diego, Norfolk, and Mayport said in a press release that the new panel line enables distortion-free welding of plates as thin as five millimeters to produce lighter, more energy efficient ships.The cutting-edge facility uses hybrid laser arc welding and numerically controlled robots to mill…

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