Steel Trade Today - Friday, Jan 30, 2009

The steel prices in India have shown quantum decline aligned with the global recessionary trend. Initially Indian market was slow to react to the global meltdown owing to already suppressed prices resultant of government directives and imposition of export duty to stem the inflationary trend.

Index	01-Jul	1-Aug	1-Sep	1-Oct	3-Nov	1-Dec	2-Jan	% Dip
ILPPI	10000	9740	8592	8451	6913	7167	7115	-29%
IFPPI	10000	10315	10095	9618	8495	7263	6782	-32%
INDSPI	10000	10014	9308	9007	7667	7213	6956	-30%

(Source: www.steelprices-india.com)

The gloomy trend is slightly more magnified in Hot Rolled Coils. The price Index has fallen by 34% in the same period.

HRC Price Index

1-Jul	1-Aug	1-Sep	1-Oct	3-Nov	1-Dec	2-Jan	%Dip
10000	10291	10092	9595	8402	7155	6562	-34%

(Source: www.steelprices-india.com)

The dip has been more in Mumbai due to multiplicity of players resulting in aggressive price cutting by steel majors on one hand and traders attempts to clear off high value imported stock at cheaper rates. It is reported that one of them had the highest ever monthly sales of 26000 tonnes in Dec’09 for the year 2008-09, although the realization was much less.

HRC Price

Date	DEL	MUB
01-Jul	44119	48069
01-Aug	45884	50253
01-Sep	45010	45447
01-Oct	42825	40203
01-Nov	36707	34085
01-Dec	31463	29715
01-Jan	27530	26738
Dip (%)	-38%	-44%

Prices are in INR per tonne
Prices are exclusive of ED and VAT
(Source: www.steelprices-india.com)

Lack of demand is barely providing an impetus to the sagging market. This has instigated traders to take position at prevailing prices refusing to bring down the prices as this is not expected to generate demand. The impasse is expected to continue in the coming months.

The market seems to be poised for difficult phase of depressed sentiments in the absence of positive feelers. The producers will have to shift the focus from domestic market to exports to keep their mills running.

To keep tab on steel prices subscribe to services of www.steelprices-india.com by registering or sending a mail to admin@steelprices-india.com. Please note that this is a paid service.

(Sourced from www.steelprices-india.com)

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INDSPI slide reflects continued reduction of steel prices in India

- 30 Jan 2009

The domestic Indian Steel price declined on January 29th 2009. The Indian Long Product Price Index (ILPPI) fell by 48 points and Indian Flat Product Price Index (IFPPI) fell by 30 points. The overall Indian Steel Price Index (INDSPI) fell by 40 points

Class	28-Jan	29-Jan	Change
ILPPI	6691	6643	-48
IFPPI	6656	6625	-30
INDSPI	6674	6634	-40

ILPPI – Long Product Price Index
IFPPI – Flat Product Price Index
INDSPI – Indian Steel Price Index

Category	28-Jan	29-Jan	Change
PI - TMT	6471	6380	-91
PI - WRC	7117	7097	-20
PI - Angle	6353	6328	-24
PI - Channel	6380	6356	-24
PI - Joist	6175	6161	-14

Category	28-Jan	29-Jan	Change
PI - Narrow Plates	6312	6253	-59
PI - Wide Plates	6793	6799	6
PI - Hot Rolled	6455	6408	-47
PI - Cold Rolled	7246	7246	0
PI - Galvanized	6910	6910	0

To know more about these indices please visit
http://steelprices-india.com/spi_services/spi.html

To keep tab on steel prices subscribe to services of www.steelprices-india.com by registering or sending a mail to admin@steelprices-india.com. Please note that this is a paid service.

(Sourced from www.steelprices-india.com)

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JSPL net sales in Q3 surges by 28% YoY

- 30 Jan 2009

Jindal Steel & Power Limited announced that it’s board of directors in their meeting held on January 29th 2009 have approved the unaudited financial results for the 3rd Quarter ended 31st December 2008.

1. Net profit after tax up by 1.92% YoY
2. Net sales up by 27.62% YoY

Particulars	Q3'08	Q3'07	Change
Net Sales	1781.07	1395.61	27.6%
PAT	325.17	319.05	1.9%
EBIDTA	622.38	544.16	14.4%
Cash Profit	436.09	437.84	-0.4%

In crores

JSPL said that the results are encouraging considering the depressing economic environment.

JSPL has shown growth in production of all its major products. Details of growth in production for the quarter ended December 31, 2008 with the corresponding quarter in the previous financial year are as under

Product	Q3'08	Q3'07	Change
Metallics (DRI & Pig Iron)	601,873	627,396	-4.0%
Steel Products	372,537	358,046	4.1%
Power (million kWh)	736.1	664.2	10.8%

In tonnes

The details of sales are as under

Product	Q3'08	Q3'07	Change
Metallics (DRI & Pig Iron)	186,328	159,857	16.6%
Steel Products	305,295	335,722	-9.1%
Power (million kWh)	302.17	268.48	12.6%

In tonnes

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Indian rebars (TMT) market analysis

- 30 Jan 2009

Index	01-Jul	1-Aug	1-Sep	1-Oct	3-Nov	1-Dec	2-Jan	% Dip
ILPPI	10000	9740	8592	8451	6913	7167	7115	-29%
IFPPI	10000	10315	10095	9618	8495	7263	6782	-32%
INDSPI	10000	10014	9308	9007	7667	7213	6956	-30%

(Source: www.steelprices-india.com)

The prices of rebars peaked in month of June 2008, at levels close to INR 50,000 per tonne. In the aftermath of global slowdown, rebar domestic prices have crashed over last 6 months. The decline in prices is vividly exhibited in the following tables

Rebar Price Index

1-Jul	1-Aug	1-Sep	1-Oct	3-Nov	1-Dec	2-Jan	%Dip
10000	9680	8415	8383	6848	7140	6915	-31%

(Source: www.steelprices-india.com)

Rebar Prices

Date	DEL	MUB	CHE	KOL
01-Jul	48900	47004	52208	45300
01-Aug	47632	44386	50960	44300
01-Sep	41314	40459	44928	36000
01-Oct	42250	41054	43680	37500
01-Nov	34859	36294	36400	30000
01-Dec	36056	35104	36920	31000
01-Jan	33654	33276	35360	33982
Dip (%)	-31%	-29%	-32%	-25%

Prices are in INR per tonne
Prices are inclusive of ED and VAT

(Source: www.steelprices-india.com)

The Index fell by 31 % and prices by 25% to 32% in the last 6 months,

It is worth mentioning that the prices have maintained a downward trend in the month of Jan’09 despite a slew of measures taken by the government.

The immediate cause is 706,000 tonnes of long product stockpile lying with RINL having major component of 449,000 tonnes of bars and rods, which has compelled them to indulge in frantic sales. In reaction, other steel majors have also resorted to price cuts to at least keep their market share intact. The secondary sector is encountered with a situation, where buyers are switching over to primary producers as the gap between the two prices narrows. A glut is in the offing in the market due to plummeting sales of secondary producers. The market seems to be poised for death knell in the coming months.

The emerging scenario doesn’t augur well for the long market in general and re bars market in particular in the coming months. The problem is likely to compound as the international prices are refusing to firm up hence parity being achieved at lower levels despite imposition of 5% import duty

Indian steel majors have already been crying foul for increase in the import duty to 15%. However this is unlikely to solve the problem in short term as an artificially captive market will embolden steel producers to augment their production to meet the demand, resulting in another price war, whereas the only viable proposition seems is to cut in the production by steel manufacturers to match reduced levels of domestic demand.

To keep tab on steel prices subscribe to services of www.steelprices-india.com by registering or sending a mail to admin@steelprices-india.com. Please note that this is a paid service.

(Sourced from www.steelprices-india.com)

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Production pruning - Usha Martin to cut output

- 30 Jan 2009

IANS reported that Indian specialty steel and wire rope producer Usha Martin is planning to scale down cost of steel production from March, aimed at increasing its operating margin.

Mr Rajeev Jhawar MD of Usha Martin, assuming that coking coal price and freight cost will be less, told reporters that "By the end of February, all our expensive raw material stock will be out of the system. From March, we can produce steel at around INR 15,000 per tonne to INR 16,000 per tonne from the present INR 27,000 per tonne.”

He added that "There will not be any reduction in selling prices, as we have already brought it down to make it at par with the market rate."

Mr Jhawar said operating profit margin for the present quarter will be under pressure but things will change from the next fiscal. He said that "With the new material prices, commissioning of the direct reduction iron, 30 MW power and rolling mill, we expect 20% plus margin from next quarter.”

He added that "Lower raw material costs and stable demand for specialty steel like wire ropes from infrastructure, oil, mining and construction sectors will also help us grow margins next fiscal.”

(Sourced fro IANS)

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TATA Steel production and sales update for December 2008

- 30 Jan 2009

Indian steel giant TATA Steel has given the following production update for December 2009 and April to December 2009.

December

Product	Dec'08	Dec'07	Change
Steel Production	1,234,764	1,245,926	-0.9%
Steel Sales	1,071,805	1,243,500	-13.8%
Export turnover	404.3	596.04	-32.2%

Production and sales in tonne
Export turnover in INR crore

April to December

Product	A-D '08	A-D '07	Change
Steel Production	3,751,202	3,590,430	4.5%
Steel Sales	3,451,350	3,502,789	-1.5%
Export turnover	2,388.42	1,555.25	53.6%

Production and sales in tonne
Export turnover in INR crore

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SAIL RSP looks back at past through photo exhibition

- 30 Jan 2009

Statesman News Service reported that in order to commemorate the 50 year of production in Rourkela Steel Plant and golden jubilee celebration of Steel Authority of India Limited, a Sail golden jubilee art gallery has been set up at the Utkalmani Gopabandhu Ispat Library of RSP.

The art gallery as well as a photo exhibition organized therein tracing the 50 years long journey of RSP was inaugurated by Mr SN Singh MD of RSP.

The photo exhibition organized by the public relations department of RSP focuses on the memorable moments in the history of Rourkela Steel Plant as well as its proud present. The rare glimpses of past like inauguration of the first Blast furnace Parvati by Dr Rajendra Prasad first President of India on February 3rd, 1959 as well as visits of many important dignitaries including the Pundit Jawaharlal Nehru fist PM of India, were on display at the exhibition, that evokes a sense of nostalgia and bring back memories associated with the steel plant.

The association of great human beings like Mother Teresa and Vinoba Bhave with Rourkela has also been showcased in this exhibition.

On the other hand to give an idea about the operations of the steel plant, several panels of photographs have been devoted to exhibit various units, facilities and products of RSP. Glimpses of the various steps taken by it to enhance the quality of life of the people living in and around Rourkela have also found place in the exhibition.

(Sourced from Statesman News Service)

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Suzlon denies plans for setting up steel plant in Karnataka

- 30 Jan 2009

Suzlon Energy Ltd has clarified to BSE that “With reference to the news item regarding investment by Suzlon to an extent of INR 50,000 crores in Steel projects” that the company or its subsidiaries have not planned to embark upon any such investment.

FE had recently reported that wind energy major Suzlon plans to invest around INR 50,000 crore to set up an integrated steel plant in Bijapur district of Karnataka.

The report had said that “Suzlon’s INR 49,720 crore project was among the 15 proposals with investment of INR 75,541.25 crore cleared by the high level clearance committee chaired by the BS Yeddyurappa CM of Karnataka on Wednesday.”

The report had cited Mr Murugesh R Nirani major and medium industries minister as saying that Suzlon would take up the project, which is likely to create 9,000 jobs, in four phases.

State commissioner for industrial development was quoted as saying that Suzlon plans to manufacture steel on its own for wind turbines to meet its domestic and overseas demand. He said that “Instead of taking steel from other companies, they would like to make steel and then convert it into towers.”

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Reliance Power emerges as frontrunner for Tilaiya UMPP

- 30 Jan 2009

BL reported that Mr Anil Ambani group controlled Reliance Power Ltd has emerged as the front runner for the 4,000 MW Ultra Mega Power Project at Tilaiya in Jharkhand.

As per report, Reliance’s bid was the lowest among the 5 bidders for the project. Mr JP Chalasani CEO of Reliance Power said that Reliance’ bid of INR 1.77 per unit levelized tariff has emerged as the lowest among the 5 bidders.

As per report, the Power Finance Corporation is likely to make a formal announcement about the winning bidder shortly. The financial bids for the project were opened on Wednesday. A committee, which includes representatives of the government of Jharkhand and Bihar, selected the lowest bidder.

Mr Chalasani said that the Tilaiya project entails an investment of about INR 16,000 crore and will have a debt equity ratio of 75:25. He said that Reliance Power will increase INR 12,000 in debt to finance the project. As there is a global decline in prices of metals, the company will be able to procure equipment for the project at a lower cost.

The final bids for the project were submitted on December 29, 2008. Apart from Reliance Power, NTPC Ltd, Sterlite Industries Ltd, Jindal Steel & Power Ltd and LANCO Infratech in consortium with Genting Power International Ltd, Malaysia, were the other bidders for the project.

Meanwhile, the project includes construction, operation and maintenance of 4000 MW power plant based on super critical technology with flexibility in unit size, based on domestic coal for its lifecycle.

Reliance Power has already bagged the Sasan Ultra Mega Power Project in Madhya Pradesh and Krishnapatnam Ultra Mega Power Project in Nellore district in Andhra Pradesh.

(Sourced from Business Line)

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Rebar (TMT) prices fall by 2% to 5% in some places in India

- 30 Jan 2009

It is reported that prices of rebars dipped at some locations on January 29th 2009

TMT
12mm
Fe 415

Location	Change	%
Kolkata	-1545	-4.70%
Delhi	-557	-1.80%
Ahmedabad	-1147	-3.90%

Change is on January 29th as compared to January 28th 2009
Change is in INR per tonne

To keep tab on steel prices subscribe to services of www.steelprices-india.com by registering or sending a mail to admin@steelprices-india.com. Please note that this is a paid service.

(Sourced from www.steelprices-india.com)

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TATA Steel facing protest in Bastar on land acquisition - Report

- 30 Jan 2009

Commodity Online reported that resentment is brewing in Bastar over TATA Steel’s land acquisition for their steel plant in Lohandiguda block, which falls under Chitrakote Assembly segment in Bastar district and is located 325 kilometer from state capital Raipur.

As per report, TATA Steel is facing protest from farmers as they don’t want to move out of their land holdings. Framers said that they will not hand over their land to TATA Steel at any cost because the land is their only source of income.

TATA Steel’s Chhattisgarh steel project needs 2063.06 hectares of land. Out of total 2063.06 hectares meant for the project, 86.5% or 1,784.22 hectares is private land, while 173.03 hectares is government land. Remaining 105.81 hectares is revenue and forestland.

The report added that TATA project will cover 10 villages namely Badanji, Bade Paroda, Belar, Beliyapal, Chindgaon, Dabpal, Dhura gaon, Kumhali, Sirisaguda and Takraguda mostly dominated by Gond, Muria and Halba tribes, besides poor families belonging to the Other Backward Castes. The Lohandiguda block is considered one of the most fertile areas in entire Bastar region.

TATA Steel has offered a compensation package that includes giving jobs and INR 100,000 per hectare of barren land, INR 150,000 per acre of single crop land and INR 200,000 per acre of multi crop land. TATAs have also promised one acre and a maximum 2.47 acre land under land for land compensation scheme for those who are losing 75% to 100% of their land.

TATA Steel had inked the deal with Chhattisgarh government in June 2005 to set up a 5 million tonne per annum Greenfield integrated steel plant in 2 phases with the help of INR 100 billion investment.

(Sourced from Commodity Online)

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Narrow plate prices falls by 6% in Chennai

- 30 Jan 2009

The prices for flat products remain unchanged on January 29th 2009 except for Chennai.

Chennai

Category	Grade	Size	Change	%
Narrow Plates	GRA	8x1.25	-1645	-5.7%
Wide Plates	GRB	12-20x2.5	170	0.6%

Change is on January 29th as compared to January 28th 2009
Change is in INR per tonne

Ludhiana

Category	Grade	Size	Change	%
Patra			-91	-0.3%
HRC	Tube	2.5x1250	0	0.0%

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JSW outlook for 2009

- 30 Jan 2009

World economy is expected to report a growth of 2.2% in the year 2009 in spite of contraction in the GDP in advanced countries due to healthy growth of over 5% in India and China. The swift measures taken by the Central banks and Governments across the world to stimulate the economy, to improve the liquidity and to augment the flow of credit to the productive sectors are positive signs for recovery in the later part of 2009.

In response to the steep and swift fall in steel demand worldwide, the Steel producers announced production cuts of over 30%. The corrections in spot input prices namely; iron ore, coal, scrap, ferroalloys, coke of over 60% signal the reset of the long term contract prices for iron ore and coal in line with the falling spot prices. Stable output prices, falling raw material costs, lower inventories, increase in Government spending are expected to benefit the steel sector.

However, India is expected to recover faster from the impact of global crisis due to its large domestic consumption base and strong banking system While the rural demand is intact, the falling interest rates, increasing credit flow to productive sectors and lower inflation should bring back the demand for steel from interest rate sensitive sectors with real estates, auto and auto components, in the next few months.

JSW proactively took up several cost control, productivity improvements, efficiency enhancements, cost reduction measures, which will immensely benefit the Company to stay competitive. The Company will be in an advantageous position with the enhanced capacity of 2.8 million tonne per annum coming up on stream in Q4, FY 2008-09 to reap the benefits of lower raw material prices and revival in demand.

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Scrap dips by 3% and Pencil Ingot by 2%

- 30 Jan 2009

The prices of scrap and pencil ingot fell at several locations across India on January 29th 2009 as a result of boost in scrap supply from Alang.

Melting scrap
80:20
HMS

Location	Change	%
Kolkata	-453	-2.6%
Mandi	-181	-0.9%
Mumbai	0	0.0%

Change is on January 29th as compared to January 28th 2009
Change is in INR per tonne

Sponge iron

Location	Change	%
Kolkata	-91	-0.7%
Raipur	300	2.3%

Change is on January 29th as compared to January 28th 2009
Change is in INR per tonne

Pencil ingot

Location	Change	%
Mumbai	0	0.0%
Mandi	-453	-2.0%
Raipur	0	0.0%
Kanpur	0	0.0%
Kolkata	-453	-2.1%
Ghaziabad	-200	-0.9%
Muzzafarnagar	87	0.4%
Ahmedabad	-500	-2.3%

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Rain commissions oxygen lancing technology

- 30 Jan 2009

Rain Commodities Ltd has announced that Rain CII Carbon Ltd, a wholly owned subsidiary, has successfully implemented oxygen lancing at its Indian calcination plant under its program on improving productivity across its operations.

The release said that “The implementation Oxygen Lancing process would result in substantive fuel savings. The technology would replace the usage of Low Sulphur Heavy Stock Oil with Oxygen that is produced within the plant. This will result in a saving of about 9,000 million of LSHS and thereby an annual saving of INR 150 million at current market prices of LSHS.”

The release added that “The revenues from Waste Heat Recovery along with the cost savings through Oxygen Lancing would further strengthen the Group's competitiveness as a low cost producer in the Calcined Petroleum Coke industry. The process has been designed also to improve the efficiency parameters of the calcining process.”

Given its global stature as a key input supplier to the Aluminium sector, Rain constantly develops and employs processes and improvements that raise the operating standards in the industry.

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CAPEX cuts - JSW may slow down WB project - Report

- 30 Jan 2009

TOI reported that the global economic gloom might jeopardize JSW Steel plant at Salboni in West Midnapore area of West Bengal.

More than a dozen contractors had begun construction work at the JSW steel plant site in Jambedia, Salboni, after the stone laying ceremony in November. Work was on in full swing despite the Maoist threat. But, now residents of Salboni are disappointed as work on the Jindal steel plant has been stopped for the last one month.

The report also cited Mr Biswadip Gupta joint MD of JSW Bengal Steel as saying that while, all work at the plant site has come to a halt, work on the boundary wall was on and construction would begin as soon as funds come. He said that "We have completed a third of the 38 kilometer long fencing."

JSW during the quarter review said that it would put all its Greenfield projects under review and pursue them at an appropriate time depending on market conditions. JSW said that it would moderate its capital expenditure program and may cut down production in operational plants.

(Sourced from Times of India)

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mjunction shelves IPO plan on TATA support - Report

- 30 Jan 2009

BS reported that mjunction services, one of the largest e-commerce companies promoted by Steel Authority of India and TATA Steel, has shelved its initial public offering plan after TATA Steel indicated it would back the management team for its future expansion plans.

The report cited sources close to the development as saying that mjunction did not go ahead with negotiations with a private equity investor in view of the promoter's commitment.

The source added that “This decision has also been influenced by a better cash flow from operations, strong treasury operations and negligible debt on its books, factors which are expected to help in raising funds in the future when the company identifies targets for acquisition.”

The report added that “mjunction, which expects to do transactions of around INR 15,000 crore in 2008-09, and is growing at 50% is looking for acquisitions and may approach its shareholders for funds.”

(Sourced from Business Standard)

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Bharat Forge and Areva to set up manufacturing facility

- 30 Jan 2009

PTI reported that Bharat Forge has entered into an agreement with Areva to build a manufacturing facility for heavy forgings in the country.

Bharat Forge in a filing to the Bombay Stock Exchange Bharat said that Forge and France based nuclear Areva have signed a MoU to set up a JV to build a manufacturing facility for heavy forgings in India. The companies are yet to finalize a place to set up the new facility. The plant is expected to be operational by 2012.

Heavy forgings manufactured by the JV would meet indigenous requirements of the power generation sector, including manufacture of turbines, generator rotators, steel plant rolls and demand of nuclear power plants in the country.

(Sourced from Press Trust of India)

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NALCO achieves lower profit in Q3 of 2008-09

- 30 Jan 2009

Kalinga Times reported that National Aluminium Company Limited, the flagship PSU of the Ministry of Mines and India’s key manufacturer and exporter of alumina and aluminium has reported its results for the Q3 ended December 2008.

According to the reviewed financial results for Q3 of the financial year 2008-09, taken on record by the Board of Directors in a meeting held in New Delhi on Wednesday, it has achieved net profit of INR 219.46 crore, with a sales turnover of INR 1091.97 crore.

During the Q3 of previous fiscal, the figures were up at INR 329.44 crore and INR 1220.97 crore respectively. It earned profit of INR 445 crore from sale turnover of INR 1,676 crore in Q2 of the current fiscal.

As per report, the net profit and sales turnover for the 9 months ended December 2008 work out to INR 1189.25 crore and INR 4374.29 crore respectively, as against the corresponding figures of INR 1215.83 crore and INR 3940.21 crore achieved during the first 9 months of the previous fiscal.

However, the alumina sales during the 9 months of this fiscal have gone down to 6.05 million as against 6.27 million achieved during the comparable period of 2007-08 and the metal sales have also declined to 2.50 million from 2.61 million during the comparable 9 months of the previous fiscal.

According to the company authorities, the lower sales and profit during the Q3 are primarily due to the global recession and sharp fall in demand and prices of alumina and aluminium.

(Sourced from Kalinga Times)

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Macroeconomic indicators - Inflation seen at 5.41%

- 30 Jan 2009

Reuters reported that the annual inflation rate is seen easing slightly in the week to January 17th 2009, after a strike by truck drivers had pushed up prices the week before. The median forecast was for a 5.41% rise in the wholesale price index in the 12 months to January 17th compared with 5.60% in the previous week.

However, inflation had fallen to an 11 month low of 5.24% in early January 2009.

Mr Shubhada Rao chief economist at Yes Bank said that "The impact of truckers strike was short lived. For the reported week, we expect primary articles and manufactured product prices to resume their downward trend."

Other analysts said that there could be some residual impact of the strike in the data, which is due around noon on Thursday.

The RBI said that it expected annual inflation to be below 3% by the end of the 2008-09 fiscal year in March.

A government official, who did not want to be identified said that India is likely to cut state set fuel prices later on Wednesday. Analysts said that a cut would likely see the inflation rate fall.

(Sourced from Reuters)

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Corus signs MoU with Marcegaglia and Dongkuk for Teesside sale

- 30 Jan 2009

Further to the announcement issued by Corus earlier this week, Corus Marcegaglia SpA and Dongkuk Steel Mill Co Ltd have signed a MoU with a view to Marcegaglia and Dongkuk jointly acquiring a majority stake in Corus’ Teesside Cast Products business.

Marcegaglia would have the largest equity interest, while Corus would retain a minority holding.

Both Marcegaglia and Dongkuk are part of the four member Consortium that has a slab Offtake Agreement with Corus. The other Consortium members, Alvory SA a subsidiary of Ternium SA and Duferco Participations Holding Ltd through Steel Invest Finance have confirmed they will continue as Offtakers in a revised arrangement after the change in ownership.

Marcegaglia and Dongkuk will now undertake due diligence with a view to finalising the terms of an acquisition agreement as soon as possible.

Mr Phil Dryden divisional director Corus Long Products said that “The proposed change of ownership fits the business plans of all participants and will significantly improve prospects for the further long-term development of steelmaking on Teesside.”

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Brazil looses 3% of Chinese iron ore import share to Australia

- 30 Jan 2009

According to the import figures released by Chinese customs, Australia exported 183.361 million tonnes of iron ore to China in 2008 accounting for 41% of total Chinese iron ore imports as against 38% share in 2007.

On the other hand, Brazilian iron ore exports to China amounted to 100.621 million tonnes accounting for 23% of total Chinese iron ore imports in 2008 as against 25% share in 2007

Indian iron ore exports share in 2008 remained flat at 21%.

2008	Volume	Share
Total	443.657
Australia	183.361	41%
Brazil	100.621	23%
India	90.996	21%

Volume in million tonnes

2007	Volume	Share
Total	383.093
Australia	145.609	38%
Brazil	97.629	25%
India	79.369	21%

Volume in million tonnes

Change	Volume	Share
Total	15.8%
Australia	25.9%	3%
Brazil	3.1%	-3%
India	14.6%	0%

Volume in million tonnes

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Production pruning - Nippon Steel to idle Kimitsu BF in February

- 30 Jan 2009

Kyodo News reported that Nippon Steel Corp said that it will idle one of its three blast furnaces at Kimitsu in Chiba Prefecture, in late February to adjust for a sharp drop in demand for steel from automakers.

The company also has said it will start refurbishing a blast furnace in Oita Prefecture in February instead of it’s originally schedule time in March.

The output will bring the total production cutback for the October 2008 to March 2009 period to roughly 4.2 million tonne.

The company announced a 2 million tonne cut in crude steel output for the period in November last year.

Nippon's crude steel output would be roughly 11 million tonne for the six month period, down from an initial forecast of 15 million tonne, excluding production of the company's consolidated subsidiaries.

Nippon Steel and other Japanese steelmakers have been reducing output in line with dropping demand from automakers since October, when the global economy started entering a full-blown slowdown.

(Sourced from Kyodo News)

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JSW manages to get 43% reduction in coking coal prices - Report

- 30 Jan 2009

Bloomberg reported that Rio Tinto Group has agreed to cut coking coal prices for India’s JSW Steel Ltd by 43% for the last three months of an annual contract after global demand slumped.

Mr Seshagiri Rao Finance Director of JSW in a telephone interview said that prices will be slashed to USD 175 per tonne for the three months ending March 31st from USD 305 per tonne.

The reduction may set a precedent and encourage mills to press BHP Billiton Ltd, Rio Tinto and other miners for cuts in iron ore and coal prices before contracts expire. Steelmakers are trying to cut costs and output as demand and prices plunged because of the global recession.

JSW imported its entire 4 million tonnes of coking coal requirement for the previous year ended March 31.

(Sourced from Bloomberg.net)

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Global hot band spot prices continue to crash

- 30 Jan 2009

SteelBenchmarker reported that the US hot rolled band spot price for January 26th 2009 fell by 1.4% to USD 574 per metric tonne FOB the mill for the twelfth consecutive time, world export HRB price dropped 4.6% to USD 480 per tonne, FOB the port of export; after rising last time. The Chinese HRB ex-works price rose 2.8% to USD 485 per tonne for the fifth consecutive time and the Western European HRB price slipped 0.4% to USD 547 per tonne ex works for the thirteenth consecutive time.

USA
USD 574 per metric tonne FOB the mill
Down by USD 8 per tonne from USD 582 two weeks ago
Down by USD 629 per tonne from the peak of USD 1,203 on July 28th 2008
Down by USD 56 per tonne from the previous high of USD 630 on April 9th 2007
Up by USD 14 per tonne from the recent low of USD 560on August 13th 2007

China
USD 485 per metric tonne ex works
Up by USD 13 per tonne from USD 472 two weeks ago
Down by USD 248 per tonne from the peak of USD 733 on July 14th 2008
Down by USD 2 per tonne from the previous high of USD 487 on September 10th 2007
Up by USD 15 per tonne from the recent low of USD 470 on October 22nd 2007

Western Europe
USD 547 per metric tonne ex works
Down by USD 2 per tonne from USD 549 two weeks ago
Down by USD 657 per tonne from the peak of USD 1,204 on July 14th 2008
Down by USD 149 per tonne from the previous high of USD 696 on June 11th 2007
Down by USD 116 per tonne from the recent low of USD 663 on July 23rd 2007

World Export Price
USD 480 per metric tonne FOB the port of export
Down by USD 23 per tonne versus USD 503 two weeks ago
Down by USD 633 per tonne from the peak of USD 1,113 on July 28th 2008
Down by USD 116 per tonne from the previous high of USD 596 on March 26th 2007
Down by USD 70 per tonne from the recent low of USD 550 on July 23rd 2007

(Sourced from SteelBenchmarker)

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Iron ore price negotiations - Analysts expects 30% fall

- 30 Jan 2009

Bloomberg reported that iron ore prices are set to fall in 2009 after 6 years of price hikes as deteriorating demand triggers severe production cuts in the steel industry.

Analysts said miners are expected to try to limit a steep fall in the contract price by cutting iron ore output to help balance the market. But with demand hit so hard in key steel consuming industries such as construction and automotive, steelmakers are likely to have the upper hand. They said that iron ore miners have slashed production to match weakening demand, but not enough to prevent a glut of material.

A Reuter’s survey of 15 analysts conducted in the last week showed Australian iron ore prices are expected to fall by 30% in 2009 annual contract talks. As recently in October 2008, analysts were forecasting no change from 2008 prices.

Ms Christina Lee, analyst at Macquarie said that "After 6 consecutive yearly rises totaling almost 400%, iron ore prices are certain to fall due to major collapse in demand."

Mr Daniel Brebner, global head of commodities at UBS said that "Even with a 40% correction in contract price it will be second highest iron ore price in history and this is one of the worst recessions we've witnessed in 40 years."

Yet Macquarie estimates that prices will not roll back to 2007-08 levels as at current levels, already down to USD 80 per tonne from a high of around USD 200 in 2008, they remain quite attractive following output cuts by major miners in China.

The freight differential between Brazilian and Australian iron ore led to a rare divergence in the 2008 benchmark price and escalated discussions on alternative pricing mechanisms. Miners have been keen to dump the traditional benchmark system and move towards a more flexible pricing mechanism to better align the dynamics of the steel and iron ore markets.

Several analysts believe steelmakers will want to stick to the existing benchmark system as it brings a certain amount of stability amid volatile prices, the same reason why some analysts think steelmakers could sign up for more flexibility.

Analysts at Royal Bank of Scotland said that "Our view is that it leaves the way open for Australian iron ore producers to push for more hybrid contracts with linkages to benchmarks, indices and spot trades. From a consumer’s perspective, this may not be a bad thing because it would enable them to reduce the cost of iron ore if demand falls further, as well as capture some of the benefit of low freight."

Negotiations between miners and steelmakers to set a benchmark price for 2009-10 iron ore supply contracts are expected to be fierce, acrimonious and lengthy, as is often the case.

Collapsing steel prices and demand have knocked down spot iron ore prices around 60% since last March 2008 making it impossible for miners' to come anywhere close to the near doubling price hikes they have achieved in 2008. Asian steel mills including Japan's JFE and major Chinese mills have said they want prices to fall at least to 2007-08 levels, meaning Australian iron ore should fall by around 45%.

(Sourced from Bloomberg)

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Monroe City files suit over SunCoke plant

- 30 Jan 2009

The Hamilton Journal News reported that the city of Monroe is suing SunCoke Energy in US District Court, trying to prevent it from building a coke plant in Middletown.

Monroe filed the suit against Middletown Coke Co, a subsidiary of SunCoke, claiming the USD 340 million plant, now under construction, violates federal clean air laws.

Last week, the US Environmental Protection Agency gave SunCoke the go ahead to build the plant.

The plant is being built on Yankee Road, adjacent to AK Steel Corp’s Middletown Works, but also close to a Monroe residential area.

Knoxville based SunCoke signed an agreement in March 2008 with AK Steel to build a facility that will use a green heat recovery method to produce coke. AK Steel would purchase all of the coke plant’s production for at least 20 years.

(Sourced from The Hamilton Journal)

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Rio State approves development plan for Sepetiba bay

- 30 Jan 2009

Bloomberg reported that Brazilian Rio de Janeiro state, seeking to expand its iron ore export capacity, approved about USD 8 billion of new terminal projects but rejected proposals by BHP Billiton Ltd, Ferrous Resources do Brasil Ltda and Brazore Ltda an ArcelorMittal JV.

Mr Julio Bueno Rio Development Secretary told Bloomberg over phone that the decision to reject some projects was made on environmental, economic and social grounds, because the proposals were far off from meeting the government’s specified targets.

Mr Bueno said that Petroleo Brasileiro SA, LLX Logistica SA, Cia. Siderurgica Nacional SA, Gerdau SA, Usinas Siderurgicas de Minas Gerais SA and Cia. Docas do Estado do Rio will be allowed to move forward with their projects and seek environmental licenses.

As per report, 12 companies presented port projects for Sepetiba, a deepwater bay that is linked to Brazil’s main iron ore producing region in Minas Gerais state by MRS Logistica SA’s railroad.

In December, Mr Bueno had said that only projects generating revenue for the state and meeting set environmental guidelines in an area that’s important for tourism and fishing would proceed.

He said that the projects would add 250 million tonnes of annual iron ore export capacity. He said that “The new Sepetiba port projects will practically double Brazil’s current iron-ore export capacity. This gives Brazil some new long-term market prospects.”

(Sourced from Bloomberg)

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Nippon Steel to raise stake in Usiminas

- 30 Jan 2009

Reuters reported that world's No 2 steelmaker Japanese steel giant Nippon Steel Corp announced that it and its subsidiary would buy a 5.9% stake in Brazilian steelmaker Usiminas from Vale.

As per report, they will jointly own 29.2% of Usiminas after the transaction.

(Sourced from Reuters)

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Arab Steel Union calls for combating global steel recession

- 30 Jan 2009

KUNA reported that Arab Union for Iron and Steel called for concerted efforts to reduce the negative effects of the global recession on the production of steel by Arab steel companies, particularly the smaller ones that face the risk of closure.

The call came during a the Union board meeting in Cairo, headed by Mr Ahmed Ezz where discussion focused on ways to cope with the global economic crisis and reduce its negative effects on the steel industry, including support to Arab steel industry.

The meeting included participation by iron and steel company officials, Arab experts and specialists, and monetary and credit policy officials.

Discussion in the meeting also tackled the issue of establishing a mechanism for the standardization of prices in the Arab region to achieve common interests of producers, traders and consumers.

Established in 1971 the union aims at developing and modernizing iron and steel industry in the region.

(Sourced from KUNA)

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Xstrata plc 2008 revenue down by 2% YoY

- 30 Jan 2009

Xstrata plc announced its preliminary results for the year ended December 31st 2008.

Highlights

1. Despite economic downturn, EBITDA was USD 9.7 billion, 11% lower than the record profitability achieved in 2007

2. Record annual production of platinum, coking coal, thermal coal, mined nickel, zinc in concentrate and lead in concentrate

3. Record thermal and coking coal and ferrochrome contracts settled during 2008

4. Real cost savings of USD 184 million achieved from productivity improvements, despite ongoing cost pressures

5. Successful commissioning and ramp up of new, lower cost production and integration of Resource Pacific, Jubilee and Tahmoor acquisitions

6. Refinancing of USD 5.5 billion of debt means no significant refinancing requirements until 2011

7. Pro active and decisive response to financial crisis: curtailment or suspension of marginal operations; substantial reductions in capital expenditure and significant operating cost savings

Mr Mick Davis CEO of Xstrata said that “Despite the sudden and severe impact of a global banking crisis that dramatically slowed economic growth from the third quarter and led to a precipitous fall in commodity prices, Xstrata’s businesses achieved a highly creditable result in 2008, generating EBITDA of USD 9.7 billion, 11% lower than the record profitability achieved in 2007. The impact of markedly lower commodity prices in the final quarter was largely offset by the benefit of record thermal and coking coal and ferrochrome contracts settled during the year, together with robust copper prices for the majority of 2008.

Mr Davis said that “A strong operating performance at Xstrata’s coal, alloys, nickel and zinc operations, the successful integration of the acquired Tahmoor and Resource Pacific coal operations and Jubilee nickel assets, the commissioning of the Perseverance zinc mine and Elandsfontein PGM operations led to record production across a number of the Group’s key commodities. Copper volumes increased by 16% in the second half compared to the first half, when lower grades and a number of one-off operational difficulties reduced volumes.”

Our businesses have acted promptly and decisively in response to sudden lower demand for key commodities and conserve cash during a period of heightened uncertainty by:

1. Suspending or closing higher cost or unprofitable production;
2. Aligning production with reduced demand;
3. Redoubling efforts to drive down operating costs and tightly control working capital and
4. Substantially reducing discretionary sustaining and expansionary capital expenditure.

He added that “The financial crisis has produced a marked lack of visibility into short term economic activity, and as such, the outlook for 2009 is uncertain. Investment in infrastructure is set to increase during 2009 and 2010, reflecting the significant stimulus packages announced by many major governments which priorities commodity-intensive investment in many cases. Xstrata continues to operate a suite of cash generative operations across a broad range of geographies, with excellent growth potential and a strong competitive position in each of its key commodity markets. Against a background of strong medium to longer term fundamentals for the Group’s products and near-term actions to secure Xstrata’s financial position, I am confident that the prospects for Xstrata remain very encouraging.”

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Mechel increases claim amount on MMK

- 30 Jan 2009

Kommersant reported that at the court sitting on the claim of Mechel Trading House to Magnitogorsk Iron and Steel Works on January 26th 2009 the claim amount was changed from RUB 613 million to RUB 993.724 million.

The break till February 6th was announced in the court sitting in order to receive additional evidences form the case participants

Mechel representative said that “Mechel applied to court with the claim on the RUB 613 million debts for coal supply to MMK on January 5th 2009. The claim amount was changed due to revaluation of the principal debt amount. Initially we claimed only a part of the debt but MMK did nothing to adjust the situation. That is why we decided to claim whole amount and the interest for borrowed money use. This amount makes RUB 993 million.”

Shipments from Mechel covered about 20 % of MMK’s demand for coal concentrate. But in Q4 2008 the companies failed to agree on the price and coal shipments were stopped.

(Source from Kommersant)

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Mr Joon yang appointed as new CEO of POSCO

- 30 Jan 2009

POSCO said that it had named Mr Chung Joon yang, its former COO to replace Mr Lee Ku taek, its outgoing CEO.

Mr Joon yang joined POSCO in 1975 and moved to POSCO Engineering & Construction in December 2008 to become CEO of the construction unit. He will formally assume the top job after POSCO holds an annual shareholders meeting on February 27th 2009.

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Scrap steel exports to China quadruple - Marubeni

- 30 Jan 2009

Bloomberg reported that Marubeni Corp Japan’s second largest scrap steel trader exports to China quadrupled in the past two months as demand improved in response to a planned government stimulus.

Mr Kazuo Baba a general manager at Marubeni’s iron and steel materials trading unit Marubeni Tetsugen Co said monthly scrap exports in December and January were about 200,000 tonnes up from the 50,000 tonnes typical of most months.

He said that “It appears that China’s stimulus measures are gradually resuscitating steel demand. About 60% of the scrap was bought by steelmakers and the rest by trading houses including Fengli Group Co.”
The Tokyo area scrap dealers’ cooperative said benchmark Chinese steel prices have gained 40 percent from a six year low after the government announced its stimulus package in November. Japanese scrap export prices under January contracts rose 28% from a month earlier to JPY 23,312 per tonne, Kanto Tetsugen. It peaked at more than JPY 70,000 last July.

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Production pruning - Samarco to extend production cut

- 30 Jan 2009

Samarco Mineração SA has announced that in view of less demand subsisting for iron ore pellets due to the impacts of the global financial crisis on the steel industry, it has decided to extend the shutdown period for the two of its three pellet plants, idled since late November 2008.

According to Samarco, these two production units will remain inactive until March 31st 2009, at which time it will reassess the demand for its products. The third pellet plant, commissioned in June 2008, will continue to operate over this period, after undergoing planned preventive maintenance during the next three weeks.

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Emirates Steel sees rebar demand drop of 30% in UAE

- 30 Jan 2009

Arabian Business cited CEO of Emirates Steel Industries as saying that the steel demand in the UAE could fall by over 30% this year with suppliers continuing to feel the impact of a slowdown in the construction sector.

Mr Sridhar Krishnamoorthy CEO of ESI told Arabian Business that expected demand in 2009 in the UAE for rebars would be around 4.5 million tonnes to 5 million tonnes, around 17% to 31% down from 6 million tonnes to 6.5 million tonnes last year.

However, He added that "From what we have seen in the first three weeks of 2009 there is a reasonable bounce back in demand, with a lot of production cuts taking affect and the inventories have gone down, so we are seeing healthy demand.”

Mr Krishnamoorthy said he expected the price to recover by about 5% to 10%, he said that "I suspect the price will start moving up as we see a bounce back in demand, more than we expected. In most regions the price has gone up marginally, 5% to 10% and the same is likely to happen in the UAE."

High stockpiles and dwindling demand has resulted in rebar prices falling to around USD 500 per tonne, a third of what they were at their peak in mid 2008.

(Sourced from Arabian Business)

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Nippon Steel lowers profit forecast

- 30 Jan 2009

Kyodo News reported that Nippon Steel lowered its fiscal 2008 earnings forecasts from late October after factoring in drops in shipments, extra costs linked to production cuts and appraisal losses on securities holdings.

Its group net profit estimate for the year was reduced from JPY 330 billion to JPY 175 billion down by 50.7% from the previous year.

The projection for group sales was cut from JPY 5.40 trillion to JPY 4.75 trillion down by 1.6%.

Mr Kiichiro Masuda executive VP of Nippon Steel told a media conference that “Such a rapid economic slowdown is unprecedented and the impact remains unclear.”

For the first three quarters of fiscal 2008, Nippon Steel reported a JPY 212.11 billion group net profit down by 19.4% YoY on JPY 3.83 trillion sales up by 9.2% YoY.

(Sourced from Kyodo News and Reuters)

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Xstrata production report for 2008

- 30 Jan 2009

Xstrata plc announced production update for the year ended December 31st 2008.

1. Record annual production of platinum, coking coal, thermal coal, mined nickel, zinc in concentrate and lead in concentrate

2. Resource Pacific, Jubilee and Tahmoor acquisitions were successfully integrated to contribute and will deliver meaningful growth

3. In July, the Perseverance zinc mine in Canada started production and in October, Xstrata Nickel’s Sinclair mine in Australia commenced operations

4. In response to weak market conditions from the third quarter, Xstrata acted quickly to suspend higher cost production and reduce existing capacity in light of weak demand, including:

5. Placing the Falcondo ferronickel operation in the Dominican Republic on care and maintenance

6. Accelerating the end of mine life closure of Craig and Thayer-Lindsley nickel mines in Sudbury, Canada

7. Closing the joint venture Lennard Shelf zinc-lead mine in Western Australia

8. Optimising the Mount Isa zinc-lead operations, including putting Handlebar Hill into care and maintenance

9. Suspending the longwall panel at the Oaky Creek No1 coking coal operation in Australia

10. Temporarily suspending 80% of the Xstrata-Merafe Chrome Venture’s annual smelting capacity in South Africa

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Universal Stainless announces new melt shop investment

- 30 Jan 2009

Universal Stainless & Alloy Products Inc announced that it will invest USD 13 million in its Bridgeville melt shop over the next 15 months.

The capital improvement will include major upgrades in equipment, automation and plant layout designed to:

1. Cut production cycle times and customer lead times,

2. Improve on-time delivery performance,

3. Increase material yields,

4. Reduce operating costs and

5. Enhance working capital management.

The major components of the capital improvement include:

1. Installation of a newly designed 50 ton electric arc furnace shell and purchase of state of the art equipment designed to automate certain recurring operating processes.

2. Upgrade of the alloy addition equipment at the Argon-Oxygen Decarburization unit.

3. Addition of new ladle preheating equipment.

4. Modify the plant layout and material handling systems within the melt shop and scrap yard to improve product flow.

5. Implementation of new melting and refining automation software.

The equipment and infrastructure spending will be completed by the end of 2009 and the automation investment will be completed by the middle of 2010. The capital improvement is expected to begin producing cost savings in the 2009 fourth quarter. Once fully implemented, the capital improvement is expected to yield cost savings of more than USD 7.5 million per year.

The Company is working with PNC Bank to establish a new revolving credit and term loan facility. This new facility will replace the Company's existing revolving credit facility that expires June 30, 2009. The combination of existing cash balances, future cash flows and the new facility are expected to be more than sufficient to fund this capital project as well as other future cash needs for the Company.

Mr Dennis Oates president & CEO of Universal Stainless said that "We are committed to delivering unparalleled customer service through reliable on-time delivery, short lead times and quality products. Over the past several months, we have critically evaluated our ability to meet this commitment. These investments in our melt shop will enable us to meet our commitments to customers and provide further opportunity to enhance the profitable growth envisioned for our Company."

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Nippon Steel to take stake in POSCO CR mill in Vietnam

- 30 Jan 2009

Reuters reported that world's No 2 steelmaker Japanese steel giant Nippon Steel Corp announced that it would take a 15% stake in POSCO's USD 533 million cold rolled mill project in Vietnam.

The 1.2 million ton capacity mill is forecast to start operating in September, supplying products such as sheet steel for cars.

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Sesa Goa expects iron ore spot prices to stabilize

- 30 Jan 2009

Dow Jones reported that Sesa Goa Ltd has expects iron ore prices to stabilize on improved demand from China after falling to rock bottom levels last year.

Mr PK Mukherjee MD of Sesa Goa said that "Spot market iron ore prices over the last couple of months have gone up by USD 10 per tonne to USD 15 per tonne and I'm not worried they'll come down from this level.”

He said that the spot price of 63 grade iron ore has climbed to USD 70 per tonne and higher from USD 56 per tonne to USD 58 per tonne a couple of months ago.

(Source from Dow Jones)

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Downsizing deals - Unions not to negotiate layoffs with Gerdau

- 30 Jan 2009

BNamericas reported that six Brazilian metalworkers unions walked out of a meeting on January 27th 2009 with steelmaker Gerdau vowing to not negotiate layoffs.

Mr Milton Viário president of Rio Grande do Sul state metalworkers federation said that "This was our first meeting. Gerdau has been one of the most lucrative businesses these last few years. They do not have any kind of cash problems nor do they lack financial resources."

He said that the company so far has avoided collective negotiations, saying it would only negotiate with unions on an individual basis. He added that "Contract suspensions are even more complicated due to legal issues."

,meanwhile, Gerdau said in a statement that it has scheduled periodic meetings with labor unions on an individual basis to seek ways to cut costs in light of the present low steel demand. The statement added that "Possibilities are being debated with local unions to discuss the realities of each market."

(Sourced from www.bnamericas.com)

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Directory of Steel Pipe Makers in China

- 30 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.

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Annual Report on China's Steel Market in 2008 and the Outlook for 2009

- 30 Jan 2009

SteelHome publishes its 'Annual Report on China's Steel Market in 2008 and the Outlook for 2009’. The report includes 14 separate reports on World Steel Market, China Steel Market, China HRC/CRC Market, China Wire Rod/Rebar Market, China Plate Market, China Stainless Steel Market, China Seamless Steel Pipe Market, China Strip Market, China Plated/coated Coil Market, China Section Market, and China Iron Ore Market, China Coke Market, China Scrap Market, China Ferroalloy Market.

Table of Contents
I Analysis on sharp rise and sharp fall in 2008 China steel market

1 Massive hike in China steel market in H1, 2008
A. Snow storm affected steel supply
B. Power coal and coke supply shortage during Spring Festival
C. Massive rise in iron ore contracted price
D. Influences of Beijing Olympics
E. Prefab construction after Wenchuan earthquake drove up cold rolled products market
F. Continuous depreciation of US dollar, crazy hike in commodity price and spreading inflation all over the world
G. World steel price surged
In spite of the tightened money policy the government implemented, inflation pressure still mounted, which cushioned the contradiction of the glut.

2 China steel price plummeted from the 3rd quarter.
A. China economy grew slower in the 3rd quarter.
B. Continuously tightening money policy exerted great pressure on capital flow.
C. International commodity price dropped with the depreciation of USD
D. Financial crisis blew heavily on market psychology.

3 China crude steel supply forecast
A. According to current market situations and production cutbacks amid many steel mills, SteelHome revised its formal prediction of 520-530 million tons of 2008 crude steel production to about 510 million tons, up 4.2% or 20 million tons year on year.
B. SteelHome assumes China steel products exports of 2008 at 57.50 million tons, down 8.2% or 5.15 million tons year on year

II China steel market anticipation for 2009

1 SteelHome assumes 540 million tons of China crude steel output in 2009.
A. Market price will further curb the growth of steel production
B. Coke supply continue to curb steel production
C. The investment in China steel industry will maintain low.
D. Flats production will stay high, and glut will not change.
E. The utilization of steel capacity stay high.

2 Financial crisis hinder China steel exports
A. World economy grow slower and steel demand dims
B. China steel exports will be improved with the resolve of financial crisis.

3 Steel demand in China home markets will sustain stable rise, but the growth rate will drop from 2008.

A. Advantages—Comprehensive national power is strengthened
B. Disadvantages—Domestic demand takes up small proportion of GDP.
C. Expectation for 2009 China Economic Growth
D. Little headroom for FAI rise.
E. Export rise slows down further.
F. Consumption grow slower.
G. Analysis on Downstream Sectors. In 2008, some steel-consuming industries are also on downward slope.
H. Steel consumption rise forecast in China home market in 2009

4 China steel market forecast for 2009

List of Tables:
1 Average Price Change in China 28 Major Cities (in yuan per ton)
2 Backward Capacity Elimination in China Steel Industry
3 IMF Outlook on World Economic Growth
4 China Crude Steel Net Export Scenarios
5 Crude Steel Demand and GDP
6 Crude Steel Demand and FAI
7 Economic Gauges in 1997-2008

To know more about the report please gets in touch with reports@steelguru.com

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Global DRI production in December down by 20.5% YoY

- 30 Jan 2009

World Steel Association have released the production figures for direct reduced iron for the month of December 2008. The global production of DRI in November December 2008 was 3.803 million tonne down by 20.5%YoY.

India retained the top slot with 1.7 million tonne production

	Dec '08	Dec '07	Change	J- D '08	J- D '07	Change
Total	3.803	4.784	-20.5%	56.767	54.433	4.3%
India	1.700	1.600	6.3%	20.150	17.820	13.1%
Iran	0.720	0.660	9.1%	7.399	7.380	0.3%
Venezuela	0.500	0.670	-25.4%	7.140	7.789	-8.3%
Mexico	0.300	0.415	-27.7%	5.940	5.737	3.5%
Saudi Arabia	0.201	0.350	-42.6%	4.530	3.781	19.8%
Libya	0.072	0.134	-46.3%	1.569	1.675	-6.3%
Argentina	0.066	0.191	-65.4%	1.847	1.799	2.7%
Canada	0.033	0.075	-56.0%	0.704	0.935	-24.7%
Qatar	0.016	0.075	-78.7%	1.681	0.935	79.8%
South Africa	0.015	0.075	-80.0%	1.190	0.935	27.3%

In million tonne

(Source worldsteel)

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Xstrata in fundraising talks - Report

- 30 Jan 2009

Reuters reported that Xstrata is set to launch a USD 6 billion capital raising fund as it looks to reduce its debt burden in the wake of the global commodities slump.

As per report, Xstrata has signed up JP Morgan Cazenove to lead manage a rights issue or share placing.

It cited London media source as saying that Xstrata is expected to sell USD 1 billion of Canadian coal assets to Glencore International to raise funds in advance of the rights issue.

Xstrata declined to comment. Shares in Xstrata closed at 623 pence on Wednesday, down 9%, valuing the group at just under GBP 6.7 billions.

(Sourced from Reuters)

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Indian Steelmakers Directory 2008

- 30 Jan 2009

The fast developing Indian steel industries are continuing beyond what most believed was possible. As one of the world's fastest growing economies, India has become the most happening place among world steel market over last few years and thus is in the radar of not only Indian but most of global players associated with steel industry. But due to fragmented nature of industry, a comprehensive list of smaller steel makers is not readily available.

"Indian Steelmakers Directory 2008” is one the top sources of information available on steel making companies in India! 'Indian Steelmakers Directory' is one of the most comprehensive and accurate directory of Indian steel companies that have ever been published. This powerful directory is your connection to the entire Indian steel industries sector.

Published in February 2008, “Indian Steelmakers Directory 2008” has been comprehensively researched and prepared, to bring you a fully up to date guide to India's rapidly growing steel makers. This Directory will be extremely useful to businesses that deal specifically with companies in the iron and steel industry, ferro alloys, consumable suppliers, raw material sellers, equipment makers and others.

Whether you are a product manager, in charge of marketing, raw material seller, in equipment business or simply interested to remain in touch with the latest developments in the Indian steel industries, this directory will save you time and effort in finding the information you need.

Why spend hundreds of hours searching for new contacts? Invest in a copy TODAY!

This directory covers name and details of 720 of Indian steelmakers in Alphabetical as well as location wise order.

Look at the information you'll get in the 'Indian Steelmakers Directory'

• Company name -723 entries
• Address-723 entries
• Phone number-723 entries
• Fax number -590 entries
• Email -446 entries

Report Summary:
1. Published: Feb 2008
2. Format PDF File (Delivery by Email on receipt of payment)
3. Total no of pages – 396

Price: USD 1250 or equivalent in INR
(Additional Charges would be levied for delivery of file on a CD or in printed form)

You can order your copy to reports@steelguru.com