Monday, December 16, 2013

Coking Coal Introduction (Part 3)

The Largest Steel Producer
 
 
According to www.worldsteel.org, The Top Big 5 Steel Producer 2012 in the world.
 
1. ArcelorMittal : 93.6 Million Tonnes
2. Nippon Steel and Sumitomo Metal Corporation (NSSMC) : 47.9 Million Tonnes
3. Hebei Group : 42.8 Million Tonnes
4. Baosteel Group : 42.7 Million Tonnes
5. POSCO : 39.9 Million Tonnes
 
ArcelorMittal is the succesor to Mittal Steel, a business originally set up in 1976 by Mr Lakshmi N Mittal, chief executive officer and chairman of the board of directors. ArcelorMittal was created through the merger of Arcelor and Mittal steel in 2006. At the time of the merger with Mittal Steel, Arcelor was the second largest steel producer in the world. In 2012, ArcelorMittal is the first largest steel producer in the world. ArcelorMittal is listed on the stock exchanges of New York (Symbol MT), Amsterdam (MT), Paris (MT), Luxemburg (MT), Barcelona (MTS), Bilbao (MTS), Madrid (MTS) and Valencia (MTS). ArcelorMittal has mining operations in 10 countries : Algeria, Bosnia & Herzegovina, Brazil, Canada, Kazakhstan, Liberia, Mexico, Russia, Ukraine and the US. Mostly mining operations are placed in Europe and US.
 
NSSMC is the second steel producer in the world. In October 2012, Nippon Steel Corporation and Sumitomo Metal Industries, Ltd were officially merged into Nippon Steel and Sumitomo Metal Corporation. NSSMC aims to achieve global production capacity of 60 to 70 million tons. In 2011, Nippon Steel produced 33.4 million tons and Sumitomo Metal produced 12.7 million tons. NSSMC makes a wide range of value-added steel products, in more than 15 countries as well as ar 16 steelworks in Japan. NSSMC has 5 manufacturing bases, Japan, Asia, Europe, Midle East - Africa and North, Central and South America.
 
Hebei Metals & Minerals Corp LTD was established in 1978, it is most famous exporter of metals in Hebei Province. Hebei Metals & Minerals Corp LTD is the largest steel producer in Cina. December 2012 announcement concerned planned involvement of Hebei Steel in a group purchase of Rio Tinto's Palabora Mining Company in South Africa for approx $476 million. Other firms involved in this purchase included the Industrial Development Corporation of South Africa.
 
Baosteel Co LTD is the largest and most advanced integrated steel company in China. The Company specializes in producing high-tech and high value-added steel products. Baosteel also exports its products to over forty countries and regions including Japan, South Korea, US and Europian Union. Baosteel has main iron and steel manufacturing units in Shanghai, Cina.
 
POSCO is the 5 steel producer in the world. Just a human civilization and steel followed the same route of development, the path POSCO has walked down is inseparable from the history of Korea's economic growth. POSCO became the world's leading steel company in 1998 based on crude steel production through continous efforts to increase facility efficiency and productivity and established an integrated digital system through a business transformation in 1999 reorganizing all work process from purchase, production and sales.


Strategic Location

Indonesian is the strategic country as coking coal producer. Significant cost and delivery time advantages to large and users in East Asia and India. According to TOP 5 steel producer in 2012, 4 of the Company is placed in East Asia, India, Cina, South Korea and Japan. Setimated time is about 7 until 10 days to deliver coking coal from Indonesian to Japan and Cina and low cost about 6 until 9 $/ton. Rather than Australia, which needs 8 - 13 days to deliver coking coal to Japan and Cina and 10 - 15 $/ton as delivery cost.

Indonesia has coal resources about 119 Billion tons of Coal in 2012. It has 4 category :
1. Low calorie ( < 5100 kal/kg) : 28.94 %
2. Medium calorie ( 5100 - 6100 kal/kg) : 61.81 %
3. High Calorie ( 6100 - 7100 kal/kg) : 7.77%
4. Very High Calorie ( > 7100 kal/kg) : 1.49 %

It means Indonesian has about 1.7 Billion tons of coaking coal rsources. Until 2011, Indonesian has 3 producer of coking coal, Marunda Graha Mineral, PT. Asmin Koalindo Tuhup and Bayan Resources. Some Company is in exploration process is Cokal, IndoMet Coal (BHP), Palace Resources and others. The startegic location makes investor has interest to explore coking coal in Indonesia.


Domestic Steel Producer






 
 
To be continued ...
 
 

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