Issue No.
05 | Apr 2015
Business Watch
Adoption of new Eurocode 2 Standard
Changes to steel reinforcement of importance to the construction industry
Eurocode standards will become
mandatory from 1 April 2015, Eurocode 2
allows up to Grade 600 steel
The new SS560 standard lays an emphasis
on Long Term Quality and third-party
certification
NatSteel products adhere to international
standards certified by reputable third-
party organisations such as ACRS, BIS,
SIRIM, SLS and SNI
NatSteel is capable of producing and
testing Grade 600 steel
With effect from 1 April 2015, the Eurocode
standards (SS EN 1992-1-1 (EC 2), SS560 &
SS561) will replace the old standards (CP65, BS
8110, SS2, SS18 & SS32) as Singapores building
codes. The Eurocode standards are considered
one of the worlds most advanced. Under
Eurocode 2, steel reinforcement has undergone
major changes and the highlights are presented
as follows:
Item Eurocode Standard
Long Term Quality Shall conform to third-
party product certification
scheme
Traceability Requires traceability
Fatigue Testing Requires fatigue testing
Steel Grade 400 to 600MPa
Mild Steel No
Ductility Class Class A, B & C
Eurocode 2 will further enhance the quality
assurance process of reinforcement steel.
Traceability and fatigue testing of materials
will now become requirements. Of note to the
industry is that apart from the usual routine
testing, the new SS560 product standard also
particularly emphasises on Long Term Quality,
which needs to be certified under a Third-Party
Certification Scheme. The SS560 allows for steel
reinforcement products not covered under
a third-party product certification scheme,
provided that extensive sampling and testing is
done prior to use. The minimum sampling and
testing size for such products are 17 specimens
per cast, per bar size, per grade, per 100 tonnes.
If the testing fails within the set criteria, the
sampling size increases to 60 specimens. Such
extensive testing is costly and time consuming.
It is therefore imperative that reinforcement
steel from reputable sources be used for
construction projects.
Another key benefit of the Eurocodes for the
construction industry is the use of superior
construction materials, leading to higher quality
and productivity. Eurocode 2 permits the use
of high strength steel of up to 600MPa (Grade
600), which has been adopted in the Singapore
National Annex to Eurocode 2. The use of Grade
600 steel has the potential to bring about
multiple benefits:
Remarks
Extensive sampling and testing is needed for products that are
not subject to third-party product certification scheme
Not a requirement under the previous SS2 Part II
Previous SS2 Part II allows for fatigue testing if requested by
purchasers, but not as a requirement
SS560 has already incorporated Grade 500 steel. Work on
incorporating Grade 600 steel is in progress
Eurocode does not support mild steel
Class-A: Temporary works, Class-B: Normal applications
Class-C: Seismic applications
Reduce structural member sizes
Increase let-able area
Lower steel consumption
Reduce manpower requirements
Reduce congestion
Reduce crane usage time
Eurocode 2 allows up to Grade 600 steel
As the pioneer, NatSteel has already initiated
a New Work Item (NWI) with SPRING for the
adoption of Grade 600 steel and is working
closely with the authorities to formulate the
necessary product standard for the benefit
of the construction industry. The Grade 600
product standard is expected to be published
this year.
As for the ductility class, Class B steel is expected
to be commonly used in Singapore in the
coming years, while Class C steel could be
used for special projects which require higher
ductility to resist seismic forces.
Overall, the adoption of the Eurocode standards
is expected to result in higher construction
productivity, quality and sustainability.
NatSteels products are Eurocode 2 compliant
and undergo stringent short and long term
quality control procedures, which are certified
by reputable third-party organisations such
as ACRS, BIS, SIRIM, SLS and SNI for export to
numerous overseas markets. The company has
also internally developed Grade 600, which is
expected to be in the market by this year. This
ensures that our customers always receive the
best quality products at value prices, with a
guaranteed peace of mind.
Guest Column
Ensuring the quality of our products has
always been at the core of our business.
In this issue, we share with you the
highlights of the new Eurocode 2 Standards
which further emphasise the stringent
quality assurance process that NatSteel
goes through. We are also pleased to profile
the Marina Wharf section (C481) of MCE,
of which we were privileged to collaborate
with Hock Lian Seng who has extensive
experience in infrastructure projects.
As we continue to share our insights to the
industry trends, we welcome your feedback
on the newsletter.
Mr Clement Lim
Head - Marketing and Sales
Industry Outlook
Global Steel Demand and Supply
Global market demand in 2015 is forecasted
to grow at a rate similar to 2014 of 2% to reach
1,600 million MT. The demand in developed
economies is expected to be moderate
while growth in emerging and developing
economies is projected to pick up. An expected
slowdown in demand growth in China in
2015 contributed significantly to slow global
growth projection, as the Chinese Government
transforms its investment supported economy
to a consumption driven economy.
World crude steel output in 2014 grew at
1.2% to 1,662 Million MT. Steel production in
China of 823 million MT contributed to 50%
of total global output. However, the national
environment measures enforced by the
Chinese Government to control pollution have
resulted in the shut down of over 50 mills. The
tightening of credit to steel mills and their
continued losses have also forced many mills
RAW MATERIAL- IRON ORES AND SCRAP
The demand for feed material has been
depressed by poor growth in demand of
finished steel products globally. China the
biggest importer has drastically reduced
iron ore consumption due to lower output,
contributing to the collapse in price of raw
materials including iron ore, coal and scrap. The
glut in iron ore supply from newly developed
mines and expanded production capacity of
major suppliers continue to weigh on prices.
The volume-growth strategy of the three major
iron mining companies Rio Tinto, BHP Billiton
and Vales has dragged down ore prices to
below US$50, a drop of 60% from a year ago.
Meanwhile, many mining companies in China,
which produce low grade iron ore, have also
shut down as they became uncompetitive.
Many high cost producers outside China
may accelerate cutbacks in production amid
deteriorating cash flow and limited revenue
STEEL PRICES OUTLOOK
Prices of steel have been continuing to slide
since two years ago, after Chinese mills started
their aggressive export strategy as internal
consumption growth fell below capacity
expansion. Unfair export rebates enjoyed by
Chinese exporters for alloy steel have resulted
in an overflow of low price, poor quality steel
into other regional markets and continents.
The weak raw material prices have also enabled
Chinese mills to drop prices to secure export
orders. However, the majority of these mills are
bleeding from huge losses due to competition
and low margin spreads. With the draining
of cash flow, the affordability to sustain
such losses is weakening. In view of these
developments, any downside correction will be
smaller than upward correction going forward.
Iron Ore Price
115

US Dollar Per Matric Ton

into bankruptcy. As a result, over 80 million potential. It is believed that iron ore prices may
MT in production capacity is expected to be soon find its resistance level, as excess stock 90

taken out of market this year. Weaker internal is reduced and steel mills act to restock their 65 Iron Ore Price

consumption in China due to a lower GDP depleted inventory.

growth of 7.4% in 2014 has fueled steel exports 40

Mar
Sep

Feb
2014 Mar

May

Dec
Jun

2015 Jan
Apr

Oct

Apr
Jul
Aug

Nov
by Chinese mills, hitting a historic high of 94 Scrap has seen its price drop to a six-year
million MT. However, exports from China are low post the economic crisis. Lower demand
projected to slow down by more than 12% this internationally and poor affordability of mills China import iron ore price from March 2014 to April 2015

year. because of depressed finished steel prices

Scrap Price
accounted for the price collapse. The growing 400
internal scrap generation in China has reduced
its dependency on the international market, US Dollar Per Matric Ton

which has also resulted in a huge loss for major 300

Scrap Price
global scrap players.
200

ar
ar

b
ay

15 c
n

n
r

r
l
g

v
Ju

Oc
Ap

Ap
20 De
Se

Fe
Ju

Au

No

Ja

M
M

M
14
20

Annual crude steel production International scrap price from March 2014 to April 2015
Source: worldsteel

Special Feature INTEGRITY UNITY

Doing Business the
Tata Way
Customer centricity is a key in Tata group
operations
NatSteel is committed to doing business
with the highest level of integrity, as
outlined in the Tata Code of Conduct
(TCoC)
As a Tata group company, customer centricity
is intrinsic to our culture. NatSteel aims to
develop a deep understanding of the unique
needs of our customers, deliver pioneering
products and services of outstanding quality
and value, as well as delight our customers at
every touch point.
Conduct our business fairly, with honesty
and transparency. Everything we do must
stand the test of public scrutiny.
UNDERSTANDING
Caring, show respect, compassion and
humanity towards our stakeholders. Work
for the benefits of the countries that we
operate in.
EXCELLENCE
Strive to achieve the highest possible
standards in our day-to-day work and
in the quality of goods and services we
provide.
Work cohesively with our stakeholders.
Build strong relationship based on
tolerance, understanding and mutual co-
operation.
RESPONSIBILITY
Be responsible and sensitive to countries,
communities and environments in which
we work. Ensuring what comes from the
people goes back to the people many
times over.
The TCoC touches every aspect of a Tata group
entitys operations, in particular:

NatSteel is also committed to doing business ETHICAL CONDUCT:

with the highest level of integrity. The NatSteel is committed to conduct our business
company adopts the Tata Code of Conduct with the highest level of integrity to build trust
(TCoC), which is based on 5 core values of with our stakeholders. We conscientiously
Integrity, Understanding, Excellence, Unity and ensure that employees conduct themselves
Responsibility. professionally at all times.
Exhibition booth & games to promote TCoC
Successful Collaboration
Greater Connectivity
SITE PLAN FORvia MCE
the Marina
C481 Coastal Expressway (MCE)
QUALITY OF GOODS & SERVICES:
We are committed to supply goods and
services of the highest quality standards and
after-sales services that are consistent with
the requirements of our customers to achieve
customer satisfaction.
HEALTH, SAFETY & ENVIRONMENT:
NatSteel is committed to providing
each employee a safe and healthy work
environment. We also work to protect the
natural environment and the health and safety
of the communities in which we operate.
We advocate the use of environmentally friendly products
EQUAL OPPORTUNITIES:
We treat our employees equally regardless of
race, religion, gender, marital status, age.
CORPORATE CITIZENSHIP:
As a good corporate citizen, NatSteel complies
Hock Lian Seng Infrastructure was the
leading contractor for the Marina Wharf
section (Contract 481) of MCE, the last
of six major civil contracts called and
awarded
NatSteel is proud to have collaborated
with Hock Lian Seng on the project, in
ensuring efficient and timely delivery
of reinforcement bars and offsite
prefabrication solutions like Cut-and-
Bend, Welded Mesh and Bored Pile Cages
ABOUT HOCK LIAN SENG
Hock Lian Seng was established in Singapore
in 1969 as a construction company with a focus
on infrastructure projects. It converted into a
public limited company with the name Hock
Lian Seng Holdings Limited on 3 December
Site map for C481 2009, followed by listing on SGX Mainboard on
21 December 2009. The principal activity of the
company is that of investment holding. As a
group, the company manages its core business
activities which include Civil Engineering &
Construction, Building Construction, Property
Development and Investment.
MARINA WHARF SECTION (CONTRACT 481)
OF MARINA COASTAL EXPRESSWAY
The dual five-lane Marina Coastal Expressway
(MCE) is a strategic underground east-west
transport link that comprises of a 3.5 km long
underground tunnel and a 1.5 km above
ground/depressed road structure. It stands as
an interchange with KPE/ECP and connects to
Marina and Central Boulevard, Prince Edward
Road and Maxwell Road.
Marina Wharf at MCE
In 2009, LTA awarded Contract 481 for
construction of the Marina Wharf section of
MCE to Hock Lian Seng Infrastructure, the civil
engineering arm of Hock Lian Seng Holdings
who met the stringent safety, engineering and
with the laws & regulations and actively budget requirements set. It was the last of six
assists in improving the quality of life in major civil contracts called and awarded for
the communities that we operate. construction of the MCE.
The TCoC The Marina Wharf section was constructed
guides NatSteel partially on existing land and partially on
as we serve our reclaimed land in central Singapore, adjacent
customers, to to the PSA port. The total length of this section
demonstrate of MCE under C481 is 950m, comprising 4 main
leadership with structures, namely, cellular pipe-pile seawall
trust. to retain reclaimed land, modified South Quay
Viaduct bridge to connect existing ECP to MCE,
new proposed viaduct and at-grade piled road
way built on reclaimed land.
OUR PURPOSE
At the Tata Group, we are NatSteel is proud to have collaborated with
committed to improving Hock Lian Seng on the project, in ensuring
the quality of life of the efficient and timely delivery of reinforcement
communities we serve. We do bars and offsite prefabrication solutions like
this by striving for leadership Cut-and-Bend, Welded Mesh and Bored Pile
and global competitiveness in Cages customised to the project blueprints.
the business sectors in which
we operate. Our practice of Since April 2014, Hock Lian Seng has been
returning to society what working on the Maxwell Station, a part of
we earn evokes trust among the Thomson-East Coast line. They have also
consumers, employees, partnered NatSteel to provide offsite fabrication
shareholders and the of Diaphragm Walls and delivered on a just-in-
community. We are committed time basis due to limited space on site.
to protecting this heritage of
leadership with trust through
the manner in which we
conduct our business.
NatSteel News
Improving the lives of the community through SPD

Since 2009, NatSteel has partnered with $210,000 to SPD President

SPD in volunteering at its centre and Ms Chia Yong Yong,
sponsoring its education programme witnessed by Dr Ng Eng
Hen, Minister for Defence.
NatSteel commits $210,000 at the SPD
Charity Show 2015, which will go towards The $210,000 will go
the SPD Bursary Award and Youth towards supporting the
Aspiration Award for the next two years SPD Bursary Award and
Youth Aspiration Award
for the next two years. The
Since 2009, SPD has been one of NatSteels
bursary awards provide
key partners in its community involvement
financial assistance to
programme. NatSteel employees are privileged
needy students, while the
to have the opportunity to volunteer regularly
aspiration award is meant
with SPD, and the organisation has also
to recognise youths with
been supporting SPD through sponsoring its
achievements outside the
education programme.
academic arena. Through
this partnership with SPD,
At the biennial SPD Charity Show on 22 March
NatSteel aims to live to
2015, NatSteel was one of the corporate
its corporate philosophy
sponsors acknowledged for its strong support
of improving the lives of
towards SPD. On behalf of NatSteel, Mr Yeoh
the community in which it
Choon Kwee, Senior Vice President and Head of
operates. Mr Yeoh Choon Kwee receiving a token of appreciation from Dr Ng Eng Hen,
Building Solutions, presented a mock cheque of Minister for Defence