Colombian steel output down in H1, mainly for longs

Colombia's rolled steel output dropped 1.3% in the first six months this year, as a consequence of maintenance stoppages that mainly affected longs output.

Steel Business Briefing notes that Colombia is not self-sufficient in steel, which obligates some domestic mills to import inputs like scrap and billets, or even finished products, to meet local demand.

According to figures disclosed by the Colombian steelmakers group Fedemetal, 791,600 tonnes of finished steel were produced between January and June this year - a 1.3% drop compared to the same period last year.

Longs output fell from 580,000 t to 567,000 t in the same comparison, a 2.2% decrease. However, flatrolled production showed a small increase in the same period, reaching 224,600 t, up from 222,400 t in the first half of 2007.

Publication: SBB - Steel Business Briefing
Provider: Steel Business Briefing
Date: September 4, 2008

Steel groups pursue acquisitions in Colombia

Colombian steel producer Siderurgica del Occidente (Sidoc) appears to be fending off several offers to buy the company. It has not been considering any takeover bid, although this could change in the due course.

The steelmaker has received offers from Brazil’s Gerdau and Votorantim – which both already have operations in Colombia – and also from ArcelorMittal as well. In Colombia, compared to its Brazilian competitors, ArcelorMittal is relatively weak.

Gerdau controls the long steelmakers Diaco and Comsisa, the rolling mill Aceros Boyacá and the special steelmaker Sidelpa. Votorantim operates Acerías Paz del Río and is now finalising the acquisition of a major local service centre, G&J Ferreterías.

Another local steelmaker, Sidenal, is also receiving offers from the same three companies, Steel Business Briefing hears. Sources at Sidoc and Sidenal confirm the existence of approaches from international groups.

Colombian sources tell SBB that ArcelorMittal is likely to increase its bid for Sidoc, fearing that it may lose its last chance of making a substantial acquisition in Colombia, a fast growing steel market.

Publication: SBB - Steel Business Briefing
Provider: Steel Business Briefing
Date: April 11, 2008

Sidenal to commission new Electric Arc Furnace this year

Colombia's long steelmaker Sidenal is to commission a new electric arc furnace supplied by Techint's Tenova later this year, probably in November or December, a source from the company tells Steel Business Briefing.

Sidenal's crude steel output reached almost 200,000 tonnes last year, from a capacity of about 280,000 t/y at its two existing EAFs. The company's raw steel capacity will be sharply increased once the new furnace is commissioned; it is expected to add around 300,000 t/y.

However, the company official explains that the ramp-up schedule for the new furnace is still uncertain, as the company has not yet secured enough scrap. "We'll probably import the scrap", he comments, adding that the US market would be the most likely supplier.

Publication: SBB - Steel Business Briefing
Provider: Steel Business Briefing
Date: March 3, 2008