Inputs for mining will be the focus of CAP for Huachipato viable
The long products market has potential in mineral grinding, activity that becomes more intense
Turning a crisis into an opportunity. To that the CAP’s Board is focused, after reporting to the regulator the difficult situation its Huachipato steel is facing.
The company said that to face the adverse situation that has meant $ 245 million of accumulated losses in four years, led themselves to long products, thanks to the trend of low grades in copper mining, have considerable potential .
Potential
In 2012 CAP produced 1.1 million tons of finished steel, of which 723 000 tons were long products (bars). Meanwhile, the rolling capacity of this type of products in Huachipato is today 800,000 tons. While the company said it will focus on these types of steel, clarified that they do not require “additional significant investments” to expand its capacity, which implies that the firm will look when it stops its production.
When they were asked by the company if the slowdown in mining investment and retrenchment of these initiatives will affect the marketing of long products, they responded that “it is possible that the cessation of mining projects reduce the dynamism of the industry”, but did stressed that “the business of mineral grinding has positive projections. The natural decline in ore grades grind will require higher volumes to ensure the same concentrate production, supporting the growing demand for inputs for milling processes “. The main products involved in these segments are thick bars for developing means for grinding minerals bars, concrete reinforcement bars, helical bars for reinforcement of tunnels, CAP SOL bars and wire rods.
The thick bars focused grinding minerals possess hardness, high toughness, uniform good uniform wear and good straightness to ensure adequate grinding efficiency. Rods for reinforcing concrete, meanwhile, meet the requirements of ductility required in works built in zones of high seismicity. CAP SOL is as a steel high strength and weldability bar. While the wire rod is a product preferably destined to drawing machine industry and its derivatives as nails, meshes, and others.
Finally, helical rods have the advantage of having been designed specifically for the support and fortification of land and tunnels.
Source: Diario Financiero
