| Price Index - India | | | | 15-Jan | 14-Jan | Change | | IFPPI | 6738 | 6752 | -14 | | ILPPI | 6976 | 6986 | -10 | | INDSPI | 6863 | 6874 | -11 | | What is it? | | Currency | | AUD | 1.5138 | | BRL | 2.3642 | | CAD | 1.2491 | | CNY | 6.8256 | | EUR | 0.7603 | | GBP | 0.6846 | | INR | 49.5340 | | JPY | 89.1501 | | RUB | 32.1309 | | USD | 1.0000 | | ZAR | 10.1329 | | View Current Currency | | Metal Rates Cash Seller & Settlement | | Zn | USD 1240 | | | Ni | USD 10605 | | | Sn | USD 11000 | | | Al | USD 1430 | | | Cu | USD 3210 | | | View Current Metal Rates | | Steel Futures | | LME-F | 325 (14-Jan) | USD | 0 |  | | LME-M | 350 (14-Jan) | USD | +10 |  | | DGCX | 480 (14-Jan) | USD | 0 | | | NCDEX | 23900 (19-Dec) | INR | 0 | | | NCDEX :
NCDEX Mild Steel Ingot Future Closing Price DGCX :
Dubai Steel Rebar Futures Closing Prices LME-M :
LME Steel Billet Future Buyer Prices (Mediterranean) LME-F :
LME Steel Billet Future Buyer Prices
(Far East) | | | | Others
Indian domestic steel prices have reached bottom - Mr Roongta - 16 Jan 2009 ET reported that Indian steel majors will not be able to withstand any further fall in steel prices.
Mr SK Roongta chairman of SAIL in an exclusive interview told Mr Subhash Narayan of ET that net margins of most steel companies have shrunk to the lowest levels and it is impossible to cut steel prices without a significant fall in raw material prices.
Mr Roongta said that “No one is making net margin on sale of steel products. Steel prices can fall further only if there is a drastic cut in long term contract price of coking coal and iron ore. The prices will stabilize after the conclusion of these long term contracts.”
Mr Roongta added that there is scope for a fall in coking coal prices and said that “If this happens under a long-term contact, companies can cut steel prices.”
(Sourced from ET)
Indian domestic price index weakens - 16 Jan 2009 Indian domestic steel prices for long products remained weak on January 15th 2009.
| Class | 14-Jan | 15-Jan | Change
| | ILPPI | 6986 | 6976 | -10
| | IFPPI | 6752 | 6738 | -13
| | INDSPI | 6874 | 6863 | -11
| | | | |
ILPPI – Indian Long Product Price Index
IFPPI – Indian Flat Product Price Index
INDSPI – Indian Steel Price Index
Long products
| Category | 14-Jan | 15-Jan | Change
| | PI - TMT | 6780 | 6763 | -17
| | PI - WRC | 7384 | 7384 | 0
| | PI - Angle | 6671 | 6657 | -14
| | PI - Channel | 6765 | 6742 | -23
| | PI - Joist | 6429 | 6426 | -3
| | | | |
Flat products
| Category | 14-Jan | 15-Jan | Change
| | PI - Narrow Plates | 6395 | 6385 | -11
| | PI - Wide Plates | 6961 | 6953 | -7
| | PI - Hot Rolled | 6544 | 6522 | -22
| | PI - Cold Rolled | 7329 | 7329 | 0
| | PI - Galvanized | 7007 | 7007 | 0
| | | | |
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Mr Leng to continue on board of TATA Steel - 16 Jan 2009 PTI reported that Mr Jim Leng deputy chairman of ATA Steel, who was named as chairman of mining giant Rio Tinto, would continue to be on the board of the TATA Steel.
A company spokesperson told PTI that "There is no change in his status as the Deputy Chairman on the TATA Steel board."
Rio Tinto announced that Mr Leng would takeover as Chairman by April 2009 when incumbent Mr Paul Skinner retires. It said that "Jim Leng will be appointed as Chairman of the Board with effect from the conclusion of the Annual General Meeting of Rio Tinto on April 20th 2009.”
Mr Leng is holding the position of deputy chairman since Corus Group was acquired by TATA Steel in 2007. He is also chairman of TATA Steel Europe, a position he has held since 2003. He was appointed as a non executive director at Corus in 2001.
(Sourced from PTI)
Mr Paswan confident on SAIL expansion plans - 16 Jan 2009 PTI reported that Mr Ram Vilas Paswan Indian minister for steel sees that things are looking up fine for Steel Authority of India and it would be able to achieve the set target within the time.
Mr Paswan said that “After reviewing the progress of the company’s brown field expansion last week, I found that the PSU has expedited the process of equipments procurement and so would be able to achieve the envisaged steel output by 2010-11.”
He added that “However SAIL has been urged to further accelerate the process of tendering and re tendering to finalize global suppliers for equipments.”
He said that “This way or that way, what we want SAIL is to complete the predicted production target in time.”
On its part SAIL has assured the ministry to speed up the process of procuring equipments, saying it is now better poised to negotiate with suppliers, as they do not have bulk orders with several companies holding back their expansion in the midst of global economic meltdown.
(Sourced from PTI)
MIDHANI gets Mini Ratna status - 16 Jan 2009 Mr AK Antony defence minister felicitated Defence PSU Mishra Dhatu Nigam Limited today on the company being conferred with the Mini Ratna Category-1 status. The status was conferred by the Department of Public Enterprises recently.
Mr M Narayan Rao CMD of MIDHANI and other top company officials hoped that the company would strive to attain the Navratna status within the targeted 3 years.
Mr R Bandopadhyay secretary DPE said that the status would enable the company to make investments in projects up to INR 500 crore and grant greater autonomy to the management in decision making.
The Hyderabad based company has done particularly well in the last 3 years. MIDHANI received the award for Quality Non Ferrous category for the year 2006-07 and last year Mr Pallabh Sarkar additional GM bagged the Metallurgist of the year title. MIDHANI raised its turnover to over INR 255 crore for the financial year ending March 2008, while the profit before tax crossed INR 50 crore.
However, MIDHANI plans to cross INR 300 crore turnover in the current financial year. It has on hand investments of INR 200 crore, both from internal and external sources for augmenting facilities to support strategic sectors in defence, space, nuclear and power generation.
HEC signs agreement with Chinese Company - 16 Jan 2009 Ranchi Express reported that Heavy Engineering Corporation signed an agreement on Wednesday with Chinese Company Schenck Process for collaboration in the field of manufacturing mining machineries.
The agreement was signed by Mr MR Venugopal director personnel of HEC and Mr Mike Petkowich MD of Chinese Company at a function here.
HEC would enter Coal Washing Construction project directly for the first time.
(Sourced from Ranchi Express)
Vedanta develops road in Kalahandi under CSR initiative - 16 Jan 2009 Statesman News Service reported that Mr Pyari Mohan Mohapatra member of Rajya Sabha inaugurated the public utility infrastructures developed by Vedanta Aluminium Ltd, which include a road from Pokharibandha to Lanjigarh and a high level bridge as well as concrete road at Lanjigarh in Kalahandi district today.
He lauded the various corporate social responsibility initiatives taken by the company for the development of the tribal in the locality.
Mr Mohapatra said that “The roads and bridges in the area would not only improve the communication facilities of the local people of Kalahandi district, but also demonstrate the progress and prosperity brought about through industrialization.”
The company sources said that Vedanta has constructed the 25 kilometer road from Pokharibandha to Lanjigarh. The bitumen road is expected to improve communications between Pokharibandha and Lanjigarh through Biswanathpur. The company has also constructed a high level concrete bridge at Lanjigarh and 1 kilometer concrete road at Lanjigarh market.
(Sourced from Statesman News Service)
HZL cuts zinc price by INR 1,400 per tonne - 16 Jan 2009 Indian zinc major Hindustan Zinc Limited has lowered prices of zinc by INT 1,400 per tonne to INR 73,300 per tonne with effect from January 15th 2009.
It said that price for HG Zinc 99.95% min ex Debari (Udaipur) Smelter is now INR 73300 per tonne as compared to INR 74700 per tonne announced on January 12th 2009.
NALCO to keep aluminum output unchanged - 16 Jan 2009 Dow Jones quoted a senior company official said that India's National Aluminium Co will keep its targeted aluminum production unchanged for the year ending March 2009 on steady domestic demand, Wednesday.
Mr BL Bagra director of NALCO said that output won't be cut despite a drop in international prices. He said that NALCO plans to produce 360,000 metric tonne of aluminum and 1.57 million tonne of alumina in the fiscal year to March 2009, almost the same as the previous fiscal year.
He said that "Until the prices drop very sharply from current levels, we will continue to have normal production."
Mr Bagra said that "We are not losing any money," adding that the company's profit margin has halved from mid 2008 levels. NALCO is one of the world's lowest cost aluminum producers.
However, aluminum prices on the London Metal Exchange have more than halved from their peak of USD 3,380 in July to USD 1,440 per tonne.
Globally, companies such as US aluminum giant Alcoa Inc, Netherlands based Vimetco NV, BHP Billiton and some Chinese companies have reduced output.
(Sourced from Dow Jones Newswires)
Slowdown signs - Indian auto makers to see decline in earnings - 16 Jan 2009 Livemint reported that Indian auto makers, grappling with a prolonged and steep slowdown in sales are likely to see a significant dip in earnings for the quarter ended December 31st the third of fiscal 2009 for most companies.
5 brokerage firms polled by Mint - Emkay Global Financial Services Ltd, Prabhudas Lilladher Pvt Ltd, Centrum Broking, IDFC-SSKI Securities Ltd and Angel Broking Ltd, all attribute the weak results to slowing sales, which in turn have made car and truck makers shut plants, reduce inventory and offer discounts to push sales.
Falling Profit BNP Paribas expects overall profitability of the automobile industry to contract by 39.8% and net sales in terms of value to decline by 14.7% over the same quarter last year. Volume sales of commercial vehicles, the worst hit, have fallen by 47% in the last quarter, while sales of cars dipped 11%.
Mr S Arun an analyst with DSP Merrill Lynch said that “While there may be some improvement on a quarter on quarter basis, they will continue with the declining trend on a year-on-year basis.” He said that as demand is unlikely to pick up, commercial vehicle makers will continue to report losses for the next 2 to 3 quarters.
Credit rating agency Crisil Ltd quoted it was reviewing the credit worthiness of the country’s top two commercial vehicle makers. It said in a statement that “Any rating or outlook change as a result of the assessment will be announced shortly.”
However, the 14 share BSE Auto Index has stayed flat so far this year rising marginally by 1.1% till January 14th. In the December quarter, it fell by 33.5%, as sales of cars, trucks and two wheelers slid in each of the 3 months, compared with the 24.9% contraction in the benchmark index of the Bombay Stock Exchange.
According to the five analysts surveyed, car makers are also likely to be hit hard with tightening financing options and weak consumer sentiment is likely to see buyers putting off purchases. Maruti Suzuki India Ltd, which reported a 14% YoY decline in volumes is expected to see a 4% decline in sales growth. Net profit is likely to fall by as much as 47%.
(Sourced from livemint.com)
Punj Lloyd bags INR 1,311.19 crore contract in Libya - 16 Jan 2009 Punj Lloyd in JV with Public Works Company Tripoli, Libya has bagged an order worth INR 1,311.19 crore from Housing and Infrastructure Board for the execution of utilities in Souk Al Juma at Tripoli in Libya.
The scope of work includes engineering, procurement, construction and commissioning of infrastructure networks, water-sewerage-storm water mains and branch lines, roads & other facilities for Souk Al Juma. The work is to be completed in 40 months.
Punj Lloyd has formed 60:40 JV with Public Works Company Tripoli, Libya to execute the utility project.
Update on Indian coal production in April to December 2008 - 16 Jan 2009 Coal production during the years 2007-08 and 2008-09 (April- November 2008) (provisional) is as indicated below:
All India coal production
| Year | CIL | SCCL | Others | Total | Change
| | 2007-08 | 379.49 | 40.6 | 36.28 | 456.37 | 5.9%
| | A-J’08-09 | 236.9 | 28.49 | 27.31 | 292.8 | 8.4%
| | | | | | |
(In million tonne)
Indian Railways freight revenue in 8 months up by 15% YoY - 16 Jan 2009 It is reported that the total approximate gross earnings of Indian Railways on originating basis during April 1st to November 30th 2008 were INR 49818.10 crore compared to INR 43726.51 crore during the same period last year, registering an increase of 13.93%.
The total approximate freight earnings have gone up from INR 29146.18 crore during April 1st to November 30th 2007 to INR 33392.83 crore during April 1st to November 30th 2008, showing an increase of 14.57%.
Indian Railways have carried approximate 534.60 million tonne of revenue earning freight traffic during the first eight months of the current financial year 2008-09. The freight carried shows an increase of 32.41 million tonne over the freight traffic of 502.19 million tonne actually carried during the corresponding period last year, reflecting an increase of 6.45%.
Slowdown signs - Bajaj Auto sales dip further - 16 Jan 2009 ET reported that Bajaj Auto may face a rough ride with the December sales figures indicating that it has been pushed to the fourth position by its rivals.
As per report, its sales dropped by 50% in October and 53% in November. It managed to sell only 62,043 units last month, slipping by a massive 55% from December 2007. The company officials said that it has rationalized the inventories with dealers, reducing dispatches from the factory.
Bajaj had been losing market share for the past few months, as sales of motorcycles remained flat at 4.3 million units in the first 9 months of the fiscal. While other players maintained their market share, Bajaj Auto sales plummeted 22% to 1.035 million units during the period. In September, its sales were down 3% in the domestic market.
Bajaj was number two in two wheeler sales, behind market leader Hero Honda till October 2008. In November, it was pushed to the third spot by Honda Motorcycle and Scooter India, a wholly owned subsidiary of Japan’s Honda Motor and now TVS Motors has nudged past it to occupy the third slot.
(Sourced from Economic Times)
NALCO sells alumina at USD 190 per tonne - 16 Jan 2009 It is reported that National Aluminium Co Ltd has sold some 30,000 tonne of alumina at USD 190 per tonne.
It is likely to float the similar quantity of alumina in next week.
It tenders usually serve as a price indication internationally.
POSCO CEO Mr Lee resigns - 16 Jan 2009 Mr Lee Ku Taek CEO of POSCO quit after POSCO posted Q4 profit that missed analysts’ estimates as the global recession curbed steel demand.
Mr Lee will leave the company February 27th 2008 when a successor will be announced. Mr Lee’s tenure started in 2003.
The 62 year old Mr Lee, who steps down one year before his term ends, said that the steelmaker needs young and new leadership to cope with slowing demand and the global financial crisis.
Mr Lee said that “I was a bit concerned that my departure may be seen as irresponsible given the worsening business conditions at the moment. But I believe the company needs young and new leadership to overcome the crisis.”
Known as a man “who melts steel with his smile,'' Mr Lee is widely recognized as a star CEO who breathed in a fresh air of challenge and competition to the steel maker, which has been the backbone of Asia's fourth largest economy's growth.
The likely candidates to succeed Mr Lee include Mr Yoon Seok Man president of the steelmaker and Mr Chung Joon Yang head of osco Engineering & Construction Co.
EU slap 25% AD on Chinese wire rods - 16 Jan 2009 Reuters reported that European Union trade panel voted in favor on Thursday of imposing temporary antidumping duties of 25% on imports of Chinese made wire rods.
An EU sources familiar with the case on condition of anonymity told Reuters that “"The vote was in favor of the duties.”
The report added that “The duties will come into force next month and remain in place for six months.”
The European Commission, which oversees EU trade policy, must then decide whether to propose definitive duties lasting at least five years. EU trade ministers must approve any such move for it to take effect.
The meeting follows a complaint from European steel producers that Chinese exporters get an unfair edge because suspected subsidies in China's steel industry give them cheap raw material.
(Sourced from Reuters)
Russia increase import duties rebars and pipes - 16 Jan 2009 It is reported that Russia will raise a customs import tariff on some rolled steel products and on steel tubes and pipes to protect domestic producers from cheap imports.
Tariffs on rebars and pipes will increase to 15% from 5%. But certain types of steel tubes, which can withstand high pressure, will see import tariffs rise to 20% from 15%.
A government statement said the tariffs will be in force for nine months, coming into effect one month after an order raising them is officially published in the government gazette.
The protectionist move comes after the government mulled ending import tariffs on some raw materials and steel products in order to contain rising prices before the global crisis acted to crimp demand from Russian industrial producers.
Latin American crude steel output flat in 2008 - 16 Jan 2009 Latin American Iron and Steel Institute reported that Latin America's crude steel production in 2008 reached 67.2 million tonnes same as in 2007.
| Country | 2007 | 2008 | Change
| | Venezuela | 5.0 | 4.2 | -16.0%
| | Brazilian | 33.8 | 34.4 | 1.8%
| | Mexico | 17.6 | 17.8 | 1.1%
| | Argentina | 5.4 | 5.7 | 5.6%
| | Chile | 1.7 | 1.5 | -11.8%
| | Colombia | 1.2 | 1.1 | -8.3%
| | Peru | 0.9 | 1.1 | 22.2%
| | Total | 65.6 | 65.8 | 0.3%
| | | | |
In million tonnes
According to Ilafa, primary iron production in the region dropped 1.4% from 62.6 million tonnes in 2007 to 61.7 million tonnes in 2008,
(Sourced from BNAmericas)
Chinese steel export rebate may be increased to 13% - 16 Jan 2009 It is reported that the State Council has in principle passed the steel industry revitalization plan that aims to push up demand on the one hand and strictly control output on the other.
Some analyst said CRC may benefit most from possible tax rebate increase, while HRC, medium and steel pipe will be less facilitated. They said that "If there is an increase, it's possibly to return to 13%."
On demand, the plan says to stabilize exports by the leverage of taxation policy, which suggests steel export rebate may be further intensified.
(Source: Guangzhou Daily)
Iron ore price negotiations - Analysts views on reduction - 16 Jan 2009 Bloomberg reported that BHP Billiton Limited and Rio Tinto Group may win higher annual contract iron ore prices than expected as demand rebounds in China amid the start of annual price talks.
Contract prices for benchmark Australian ore may fall to 101.26 cents per dry metric ton unit, or about $64 a metric ton, from a record 144.66 cents, according to the median estimate of 11 analysts surveyed by Bloomberg News. That’s double the 15% cut estimated in a survey of 11 analysts on Nov. 6.
Mr Tom Price, commodities analyst at Merrill Lynch & Company said that “The market certainly has strengthened since late last year. Things are improving, the Chinese steel mills will be keen to settle early and the iron ore producers will probably want to delay.”
Mr John Veldhuizen, an analyst at BBY Limited said that “It may not even be that much because the latest import data into China was extremely strong. The market may actually be tighter than we think.”
Mr Sean Fenton of Tribeca Investment Partners said that “I am expecting contract iron ore prices to be down at least 40% and potentially down as much as 60%.”
Baosteel Group Corporation started talks to set annual contract prices with Rio Tinto in Shanghai this week. Prices, which have risen the past six years to a record, may fall 30%, according to a survey of 11 analysts this week, trimming profits for Rio and BHP.
Meanwhile imports of iron ore into China rose 6.2% in December 2008 from November 2008 and steel exports gained 7.4%, the first gain in 4 months. Stockpiles of iron ore at Chinese ports also fell and some steel mills in the country have reopened following a slump in demand in the fourth quarter last year.
(Sourced from: Bloomberg)
Rio fourth quarter 2008 operations review - 16 Jan 2009 Mr Tom Albanese CEO of Rio Tinto said that "Production for the quarter was in line with expectations. We are taking firm action in response to the global economic downturn and, given the resilience of Rio Tinto's low cost assets, expect to remain well positioned when recovery comes."
Rio Tinto saw quarterly global production of iron ore down 18% on the fourth quarter of 2007 following a 10% reduction in the Pilbara annualized production in line with guidance provided on November 10th 2008.
Rio Tinto saw annual iron ore production, 100% basis, from the Pilbara operations of 175 million tonnes, 142 million tonnes. attributable basis, up by 7% against 2007. Pilbara iron ore shipments for 2008 of 171 million tonnes, 100% basis, up by 7% on 2007, in line with previous guidance.
Bauxite production up by 19%, alumina up by 26% and aluminium up 21%, compared with the fourth quarter of 2007, reflecting the completion of the Alcan acquisition with effect from October 24th 2007. On a proforma basis the respective increases for bauxite and alumina were 6% and 3% while aluminium declined by 2%, primarily due to production cutbacks in France, New Zealand and the UK.
Continued recovery in copper grades at Kennecott Utah Copper offset by a further grade decline and operational difficulties at Escondida, leading to an overall decrease in mined copper of 18% compared with the fourth quarter of 2007 and an associated increase in unit costs.
Australian hard coking and thermal coal production was up by 40% and 21% respectively on the fourth quarter of 2007.
Uranium production was up by 20% on the same quarter of 2007 due to higher grades.
The QMM mineral sands operation in Madagascar commenced ilmenite production on schedule at the end of December 2008.
Fourth quarter earnings at Rio Tinto Alcan will be negatively impacted by the sharp decline in the aluminium price. In addition, inventories are expected to be written down to reflect realizable values at the year end.
Copper provisional pricing expected to lower underlying earnings by approximately USD 360 million in the second half of 2008.
Estimated total exploration and evaluation expenditure of USD 1,135 million pre tax for2009, including the write off of USD 176 million of project costs and undeveloped exploration properties.
Recession reports - POSCO posts 41% QoQ dip in profit - 16 Jan 2009 POSCO saw its fourth-quarter operating profit sink by 30% as compared to the third quarter due to the financial crisis, while annual results for 2008 including operating profit, net profit and sales were all record highs.
According to data released at the briefing, net profit stood at KRW 721 billion in the period ended December 31st up by 1% YoY but down by 41% QoQ from the previous quarter. Fourth quarter sales were KRW 8.31 trillion up by 53%YoY but down by 6% QoQ. Operating income stood at KRW 1.39 trillion up by 60% YoY but down by 30% QoQ.
Sales, operating profit and net profit in 2008 stood at KRW 30.64 trillion, KRW 6.54 trillion and KRW 4.45 trillion respectively, all record highs.
Mr Lee Dong-hee VP & CFO said that “These quarterly figures continued to climb through the third quarter but fell sharply in the fourth quarter as demand fell in the aftermath of the financial crisis.”
He added that “Conditions will likely deteriorate further. Worldwide steel demand is expected to contract this year for the first time since 1998, shrinking in the US, Europe and Japan for the second straight year and also slowing in emerging markets.”
Mr Lee Ku Taek CEO of POSCO said that POSCO will face the most difficult time in this quarter, on frozen demand from automakers, shipbuilders and other industries. He said that “With export prices declining further, the first quarter will be the most difficult time for POSCO, There will be a slight recovery in the second half.”
MEL Australian unit acquires 40% stake in Lincoln Minerals - 16 Jan 2009 ET reported that Bangalore based iron ore miner Mineral Enterprises Limited’s holly owned subsidiary Mineral Enterprises Australia has acquired 40% stake in the gum flat iron ore project of Australian mining firm Limited.
As per report, ASX listed LML entered into a JV agreement with MEL, in December 2007 for iron ore exploration in South Australia. Although a joint venture agreement for the project was signed between the two more than a year ago, formal acquisition of stake by MEL was subject to specified funding of $2.5 million. This was for meeting initial drilling and exploration expenses.
MEL has also doubled its stake in LML to 10.17%. The acquisition of additional stake makes MEL along with its subsidiary MEA the largest shareholder of Lincoln after Australian mining firm South Cove which holds 18% stake in the company.
Mr A John Parker MD of Lincoln Minerals said that "MEA has fulfilled its obligations with respect to funding a total of $2.5 million of exploration expenditure on gum flat, and in accordance with the JV agreement is now a 40% participant in the tenement. While LML will meet 60% of the future expenses on the project, MEA will fund the remaining 40%. LML retains the right to operate and manage the project.”
Mr Basant Poddar MD of MEL said that "We funded the initial exploration work through internal accruals. The drilling and exploration of iron ore is expected to get over next year following which the mining would begin.”
The drilling and exploration work on the block, which is estimated to have iron ore reserves of close to 250 million tonnes, has started. So far 25% of the area has been covered and the remaining 75% would require another 1-1.5 years. The actual reserve after final processing would narrow down to about 100 million tonne and annual production would be 5 million tonne.
(Sourced from ET)
China to launch wire rod and rebar futures in March - 16 Jan 2009 China Securities Journal report, citing sources close to the matter reported that China is expected to start trading of steel product futures around March.
The report said the first two products will be wire & rod and deformed steel bars on the Shanghai Futures Exchange.
(Sourced from China Securities Journal)
Production pruning - ArcelorMittal restarts BF at Liege - 16 Jan 2009 Dow Jones reported that ArcelorMittal has restarted one of two blast furnaces at its Liege steel plant in Belgium.
The report cited a company spokesman as saying that the company is reheating the blast furnace in order to prepare the blast furnace to start manufacturing steel.
The Liege steel plant can produce 3 million tonnes of flat steel products a year. Each blast furnace is able to produce about 1.5 million tonnes a year of steel.
(Sourced from Dow Jones)
Al-Kharafi bags 2nd license to build billet plant in Egypt - 16 Jan 2009 The Daily Star reported that the Industrial Development Authority approved an offer by the Kuwaiti Al-Kharafi Group to build Egypt’s second steel billet plant at an estimated investment cost of USD 800 million.
Emak for Commercial Agencies Company, a subsidiary of Al-Kharafi Group, will build the plant, which will have an annual capacity of 6 million tonnes of billets.
This is the second billet production license to be awarded in Egypt. The first was also won by Al-Kharafi Group for another project with a capacity of 6 million tonnes annually.
(Sourced from Daily Star)
Raspadskaya slashes coal production by 31% in 2008 - 16 Jan 2009 Interfax reported that Russian coking coal producer Raspadskaya slashed coal production 31% in 2008 to 9.4 million tonnes.
Raspadskaya said that coal concentrate sales fell 20% to 7.03 million tonnes, and the average sale price of its coal concentrate fell 40% in the Q4 compared with the Q3 to RUB 3,300 per tonne.
(Sourced from Interfax)
Ukraine still refusing to transit Russian gas to Europe - Gazprom - 16 Jan 2009 Russian gas giant Gazprom vide a release yesterday said that Ukraine is still refusing to transit Russian gas to Europe
It said “Today at 2.00 another request was sent to the NAK Naftogaz Ukrainy United Dispatching Center for the transit of 99.2 million cubic meters of gas per day starting from 10.00 via the Sudja gas metering station. From this amount, 13.9 million cubic meters is intended for customers in Moldova, 63.1 million cubic meters is destined for the Balkans via the Orlovka gas metering station, with 22.2 million cubic meters meant for customers in Slovakia via the Uzhgorod gas metering station.”
The release added that “In response we once again received a note with the refusal to transit gas under the pretext that there was no Technical Agreement on the terms of gas delivery and acceptance at crossborder gas metering stations for 2009. Although the absence of such a technical agreement can’t be a basis for blocking the gas transit via Ukraine given that the existing gas transit contract is valid from 2003 till 2013. In practice, respective technical agreements had been signed by Gazprom and Naftogaz Ukrainy at year-end, while in 2007 such an agreement wasn’t signed at all – which nevertheless wasn’t a handicap either for gas transit to Europe, or for gas deliveries to Ukrainian customers. In the current crisis situation the absence of these or other nonobligatory technical documents, which are not part of the contract, can’t serve as a reason for the refusal to transit gas.”
The release said that “In this context OAO Gazprom demands that NAK Naftogaz Ukrainy implements its contractual commitments without delay and accept Russian gas into Ukraine’s gas transmission system for transit to European customers. The gas tap at the export gas trunkline on the Ukrainian territory, past the Sudja gas metering station, remains turned off.”
As per release “On the Russian territory the gas taps at the Sudja gas metering station at the entry point to the Ukrainian gas transmission system have been open for the third day running, with an operational pressure maintained. This enables to secure gas deliveries to European customers at any moment.”
Salzgitter CFO sees recovery in order book - 16 Jan 2009 Bloomberg reported that Salzgitter AG may start to recover as clients run stockpiles down to a low point in the second quarter of 2009.
Mr Heinz Joerg Fuhrmann CFO of Salzgitter said that production cuts will speed the pace at which inventories fall and demand will stabilize at a weaker level.
Salzgitter's flat steel and beam output slid by about 30% in December and will drop by a similar amount in January 2009. He added that "In flat steel, we have a chance in the second quarter to see the low point in inventory volumes. For beams, that could happen even sooner."
Mr Fuhrmann said that "We had to face the picture that times would not always be sunny. The problem is less the steel price and more the volumes. He added that that's why Salzgitter and competitors may benefit from the biggest European stimulus program. The plan will lower Germany's tax rate and offer assistance to steel buyers. The company does not intend to cut major investments because that would hamper future growth.
He further added that Salzgitter has reduced working hours at units that supply carmakers and other consumer related companies and will continue to do so. The cutbacks may be extended to other areas of the business affected only indirectly by those customers.
It may be noted that German steelmakers are slashing output as carmakers and builders book fewer orders amid tightening credit markets and consumer reluctance to spend in a recession. The government agreed this week to invest an extra EUR 50 billion on a stimulus plan that includes incentives to buy new autos and funding for school construction.
Mr Shane Rimmer director at EuroStrategy Consultants said that "This argument does make sense. There won't be a recovery but demand will increase. Companies are still using steel and so after running inventories down will need to restock at some point."
(Sourced from bloomberg.net)
BC Iron may sell Pilbara stake to Chinese and Indian steelmakers - 16 Jan 2009 Bloomberg reported that BC Iron Ltd an Australian iron ore miner received offers from Chinese and Indian steelmakers to invest in its Pilbara project to help pay for initial production costs.
Mr Mike Young MD of BC Iron Ltd said his company needs about AUD 30 million to start output at the Nullagine project, about 60 kilometers from Fortescue Metals Group Ltd Chichester Ranges operations. He said that “The Chinese are still looking for assets. Interest in Australia iron ore hasn’t let up despite the general sentiment in the market.”
Mr Young said the lower production target would reduce start-up costs by as much as 70 percent. He said that BC Iron may use trucks to transport ore from the site to Port Hedland should it fail to reach an agreement with Fortescue. Transport costs by road have halved in the past year due to declining fuel prices and a higher availability of trucks.
He added that “None of the hurdles we face now are different to the ones we faced before the downturn. In the next couple of months, we’ll try to finalize an agreement with Fortescue.”
Russia drops imports duty on CR stainless steel - 16 Jan 2009 It is reported that Russia will drop indefinitely 5% import tariff on cold rolled stainless steel less than 0.35 mm thick and less than 60 cm wide containing less than 2.5% nickel used in motor vehicles and their parts, to stimulate domestic car production.
Last month the government also abolished a range of other import duties on cold rolled steel products used in the auto industry in order to help domestic manufacturers.
Kai Yuan to buy Chinese steel venture Fame Risen - 16 Jan 2009 Reuters reported that Property investment and heat energy supplying concern Kai Yuan Holdings Ltd would buy a steel manufacturing and trading venture for HKD 5.2 billion in a move to further diversify its business scope to expand income stream.
The company said late on Thursday it would buy Hong Kong incorporated Fame Risen Development Limited, which owns steel making and trading businesses in China.
Fame Risen is 70% held Zhang He Yi, who is a shareholder of Kai Yuan and 30% owned by Qi Shi An, a third party entrepreneur.
The deal will be settled by the issue of 2 billion new shares, representing 21.93% of the enlarged share capital, at HKD 2.6 each.
Production pruning - ArcelorMittal Dofasco to shut EAF for 3 months - 16 Jan 2009 The Hamilton Spectator reported that ArcelorMittal Dofasco will temporarily idle its electric arc furnace for three months in an attempt to reduce costs. The company will move the production to its integrated operations.
Mr Larry Meyer spokesperson of ArcelorMittal Dofasco told that the move will not result in any further production cuts at the steelmaker, which plans to shift the steelmaking to another furnace at the plant.
He said that "We are not producing any less steel, we are just shifting where it is made. Nothing's changing in terms of production levels."
ArcelorMittal Dofasco will also process more steel slabs made at other operations.
ArcelorMittal Dofasco has already slashed production by 40% after demand for steel collapsed late last year.
(Sourced from The Hamilton Spectator)
Coal & Allied Q4 output flat - 16 Jan 2009 Rio Tinto Ltd majority owned Coal & Allied Industries Ltd said that its fourth quarter output was in line with the corresponding period last year after maintenance and improved mining conditions.
The company's share of saleable production during the three months to December 31 was 4.745 million tonnes, in line with the previous corresponding quarter of 4.746 million tonnes.
Coal & Allied said that output was8% higher than the third quarter after the conclusion of maintenance at the Hunter Valley operations in NSW and an improvement at the nearby Bengalla mine.
It added that “Coal sales during the fourth quarter dipped by 5.7% to 4.81 million tonnes, which was in line with the company's allocated port capacity.”
It also said that “Its semi soft coking coal production in the fourth quarter was 16% higher than the previous corresponding quarter, to maximize the return on current contracts.”
Full year output for 2008 was 18.61 million tonnes up by 4.8% YoY.
Readymade information to help you expand your reach in India - 16 Jan 2009 Last 6 months have spelt doom for almost all walks of life, more so for booming steel and consuming sectors in India. Now every company is taking various measures to remain afloat at these trying times and emerge as winner later
In addition to realigning business processes and improving efficiency to reduce costs, one can try to expand business by reaching out to more clients.
But Indian industry is by and far highly defragmented and thus it is quite difficult and time consuming to reach smaller players. Therefore SteelGuru has made an effort over last 12 months to collect the contact details of various segments and has published several directories.
The directories contain only the following details
1. Name
2. Address
3. Phone No
4. Fax No (Wherever available)
5. E Mai l(Wherever available)
6. URL (Wherever available)
They are delivered in PDF format through e mail
The list of such directories is as under
| Sl | Name | Month | USD | Entries | E mails
| | 1 | Indian Steel Makers | 8-Feb | 1250 | 723 | 446
| | 2 | Stainless Steel Manufacturers in India | 8-Mar | 350 | 55 | 55
| | 3 | Electrical Steel Users in India | 8-May | 800 | 431 | 300
| | 4 | Tin Plate Users in India | 8-May | 625 | 147 | 90
| | 5 | Autopart Manufacturers in India | 8-May | 625 | 431 | 403
| | 6 | Cement Manufacturers in India | 8-Aug | 200 | 186 | 157
| | 7 | Machine Tool Manufacturers in India | 8-Aug | 600 | 389 | 381
| | 8 | Transport Companies in India | 8-Aug | 350 | 176 | 130
| | 9 | Refractory Manufacturers in India | 8-Aug | 350 | 74 | 68
| | 10 | Tube and Pipe makers in India | 8-Aug | 350 | 208 | 129
| | 11 | Overseas Scrap Suppliers to India | 8-Sep | 500 | 1191 | 1074
| | 12 | Indian Marine Industry | 8-Oct | 150 | 49 | 35
| | 13 | Forging Industry in India | 8-Oct | 350 | 121 | 82
| | 14 | Indian Galvanizers | 8-Nov | 350 | 203 | 150
| | 15 | Induction Furnace based steelmakers | 8-Nov | 300 | 399 | 283
| | 16 | Indian Ferroalloy Producers | 8-Nov | 250 | 60 | 60
| | 17 | Alloy steel Manufacturers in India | 8-Dec | 250 | 56 | 50
| | 18 | Wire Drawing Manufacturers in India | 9-Jan | 200 | 70 | 59
| | 19 | Mining Industry in India | 9-Jan | 350 | 162 | 141
| | | | | | |
Pl visit http://www.steelguru.com/reports/list.html or send a mail to reports@steelguru.com for further information
Australia to see significant drop in coal and iron ore prices - 16 Jan 2009 Bloomberg reported that export prices for coal and iron ore from Australia may drop significantly in 2009 as slowing industrial growth curbs demand.
It cited the Reserve Bank of Australia as saying that “Developments on the demand side, especially in China which accounts for close to half of global demand will continue to have a significant influence on prices for coal and iron ore.”
(Sourced from: Bloomberg)
Directory of Steel Pipe Makers in China - 16 Jan 2009 Welded pipe and seamless pipe are the two major categories of tubular products in China and are not only used domestically but are exported across the world.
China's seamless pipe enterprises began expansion from 2004. By end of 2006, the nation's capacity of this products reached 16.5 million tonnes. As the world's first producer, China has over 300 seamless steelmakers, a part of which possess first rate manufacturing technology and most advanced facilities, bringing domestic sufficiency close to 90%.
On welded pipe, the producers are distributed more scattered, bulk of which are privately owned and have a relatively big capacity. Yet, many productions are affected by seasonal factors and actual output can be less than the total capacity of 37 million tonnes. ERW accounts for around 80% of the total welded pipe production capacity.
Published in December 2008, 'Directory of Steel Pipe Makers in China ' has been comprehensively researched and prepared, to bring you a fully up to date guide to Chinese steel pipe industries.
Why spend hundreds of hours searching for new contacts? Invest in a copy TODAY!
Content:
This report covers name and product details of 1208 steel pipe manufacturers of China in alphabetical as well as location wise order. Look at the information you'll get in the 'Directory of Steel Pipe Makers in China'
• Company name -1208 entries
• Address-1208 entries
• Email-1193 entries
• Phone number-1207 entries
• Fax number -1203 entries
• Mob -487 entries
Format: PDF File
Total no of pages – 629
Delivery by Email on receipt of payment
Price: SD 500 or equivalent in INR
Additional Charges would be levied for delivery of file on a CD or in printed form
How to order:
Ordering the report is simple. You can order your copy to reports@steelguru.com , who will send you an invoice of the report.
Update on US HRC and CRC market - 16 Jan 2009 Platts reported that lead times for both steel hot rolled and cold rolled coil are now pushing out to late February or early March 2009 in the case of HRC and extend into mid March for CRC.
The Platts benchmark price of HRC increased by USD 15 to a midpoint of USD 525 per short ton ex works Indiana and the price of CRC gained USD 10 to a midpoint of USD 625 per short ton ex works Indiana. Import prices to Houston were unchanged, as market participants eyeing offshore material reported no workable offers.
Platts said that "Flat rolled is showing early signs of improvement."
According to American Iron & Steel Institute data released this week, steel mills operated at an estimated 44.5% of capacity in the week ending January 10th 2009 as compared with an estimated 36.3% in the previous week Raw steel production in the US increased nearly 200,000 short ton in the latest week to 1.06 million short tons for the first full week of 2009 as compared with 866,000 short tons in the week ended January 3rd 2009.
Steel mills in the South showed the largest WoW increase as production jumped by 82% to 412,000 short tons from 226,000 short tons the previous week. Several buyers acknowledged taking advantage of low priced HRC deals from Severstal's SeverCorr mini mill in Mississippi in late December. Some large volume were said to be priced well below USD 500 per short tons ex works Mississippi. This would partly explain the recent output increase in the southern US.
(Sourced from platts.com)
Production pruning - Ukrainian mining firms cut down production in 2008 - 16 Jan 2009 Ukrainian cabinet has informed that metal mining enterprises in the country cut down the volumes of iron ore concentrate by 6.9% to 56.696 million tonnes, pellets by 8.8% to 120.401 million tonnes in January to December of 2008 against the same period of 2007.
As per the report, in over 12 months, production of agglomerate reduced by 11.7% to 369.372 million tonnes.
In 2007, the metal mining enterprises upped production of iron ore by 6% to 77.429 million tonnes, iron ore concentrate by 7% to 60.969 million tonnes, volumes of production of prepared iron ore raw materials grew by 6% to 72.117 million tonnes, including pellets by 7% to 22.374 million tonnes, agglomerate by 5% to 49.743 million tonnes.
NSSC may skip Q1 ferrochrome shipments to South Africa - 16 Jan 2009 Reuters reported that Japan's Nippon Steel & Sumikin Stainless Steel Corporation may skip lifting Q1 shipments of ferrochrome from South Africa due to weak demand.
A NSSC official said that it would be the first time for the company to defer ferrochrome shipments, underscoring how demand for ferrochrome has slumped due to the sharp economic downturn. He added that details of the agreement had yet to be worked out, but the company was already suffering from a glut in ferrochrome supplies.
He said that "Given high inventory and weak) demand, it is just not possible to buy fresh supplies." He added that NSSC is still in discussions with leading South African ferrochrome suppliers on how much it would buy under 2009 contracts.
NSSC typically holds term talks with Xstrata Plc and Samancor Chrome though the official declined to name companies in its recent negotiations because the talks are still taking place.
It may be noted that NSSC is owned 80% by Nippon Steel Corporation and 20% by Sumitomo Metal Industries Limited and is Japan's biggest comprehensive stainless steel maker.
(Sourced from Reuters)
Downsizing deals - 450 ArcelorMittal Galati workers opt for VR - 16 Jan 2009 Curierulnational reported that Trade union representatives from the steel platform declared that a number of 450 employees of the ArcelorMittal Galati plant will be made redundant as of January 16th 2009, under the new self program initiated by the management.
The report added that the number of those who asked to go is much higher, namely 1700 of the 13,600 employees and the remaining claims will be reviewed by the end of the month.
The report cited Mr Gheorghe Tiber leader of the Solidaritatea Trade Union at ArcelorMittal Galati as saying that "Following the analysis made by the representatives of the plant, it was decided that 450 employees terminate their work relations on January 16th 2009. Those allowed to go under the self redundancy program are both production and technical administrative staff. Most of those directly involved in production that received the approval are ill or close to retirement age."
The plant management offered the employees a financial package much more consistent than that provided in the Collective Labor Contract. The package includes a fixed amount, which varies between ROL 10,000 and ROL 25,000, depending on seniority. The employees will also receive for up to 24 months, the last gross salary received during the month prior to leaving. 50 employees with serious health problems or close to retirement have already terminated their work relations with the start of 2009.
It may be noted that approximately 13,700 employees currently work at ArcelorMittal Galaţi, half the number of plant workers in the autumn of 2001, when it was taken over by Mittal Steel. In the autumn of 2008, the plant closed down several production sections, following a sharp fall in demand for steel products on the world market.
(Sourced from www.curierulnational.ro)
NMDC sees iron ore demand rising by January end - 16 Jan 2009 PTI reported that National Mineral Development Corporation sees demand picking up by the end of January on the back of steps taken by the public sector firm.
Mr Rana Som CMD of NMDC said that "We have reduced iron ore prices and diversified our customer base to improve the offtake by the end of this month."
Mr Som said that "Apart from talking to our long-term customers to revive the iron ore offtake, we have expanded our customer base to include many secondary steel producers and pig iron manufacturers, which will help us in selling more."
Mr S Venkatesan director commercial of NMDC said that "We may sell about 2 million tonne to 2.5 million tonne in the next quarter, depending on the activities in the construction sector."
As per report, NMDC saw its iron ore sales dip by nearly 35% to 1.2 million tonne in December as demand from domestic steel consumers declined. The mining major is also banking on the revival of construction activities to bolster demand for steel products, which would also increase the requirement for iron ore.
(Sourced from Press Trust of India)
Argentine crude steel output in December drops by 45% YoY - 16 Jan 2009 BNamericas reported that crude steel production in Argentina dropped by 45.4% YoY to 267,700 tonnes in December 2008 as against 489,900 tonnes in December 2007 and slipped by 31.6% MoM as compared to 391,20 tonnes in November 2008.
(Sourced from www.bnamericas.com)
Chinese HDG export market keeps unchanged - 16 Jan 2009 It is reported that Chinese hot dipped galvanized coil price are largely unchanged as transactions tend to be thin when Chinese Spring Festival is drawing near. Most traders would suspend business early next week.
On Shanghai market, 1.0mm HDG by Anshan steel is being quoted at CNY 4600 per tonne down by CNY 20 per tonne to CNY 40 per tonne from last Friday. That for 0.5mm HDG by private steel maker is tagged at CNY 4900 per tonne flat with last week.
Prevailing export quotation for 1.0mm HDG Z120 remains stable at USD 660 per tonne to USD 670 per tonne FOB and there are also lower levels between USD 620 per tonne to USD 650 per tonne FOB. Most traders are in rest since there is almost no business in the past weeks on sluggish demand and EU's former anti-dumping investigation. Though the AD case has been withdrawn early this month, there is not expected to be evident change until April.
(Sourced d from www.Mysteel.net)
Visit www.Mysteel.net for real time access to China steel news!
Atlas sees recovery in Chinese iron ore imports - 16 Jan 2009 Bloomberg reported that Atlas Iron Ltd the West Australian iron ore company that started mining last year said China's demand for the raw material is recovering and contract prices may not drop as much as anticipated.
Mr David Flanagan CEO of the Perth based company said "There is big destocking of the stockpiles in China and that is pushing people to go and replenish.”
He said that “We are seeing strengthening demand."
He added that "I don't want to forecast a number specifically but I think 30% is over the top. The stimulus package is playing a role and general growth in China is also playing a role in demand rebounding.”
According to the Beijing-based customs office, China's iron ore imports rose 6.2% in December to 34.5 million tonnes. According to Merrill Lynch & Co Iron ore stockpiles at ports are also declining, down to about 60 million tonnes from 75 million tonnes.
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