| Price Index - India | | | | 29-Jan | 28-Jan | Change | | ILPPI | 6643 | 6691 | -48 | | IFPPI | 6625 | 6656 | -31 | | INDSPI | 6634 | 6674 | -40 | | What is it? | | Currency | | AUD | 1.5550 | | BRL | 2.2988 | | CAD | 1.2302 | | CNY | 6.8297 | | EUR | 0.7768 | | GBP | 0.6989 | | INR | 49.0916 | | JPY | 89.6645 | | RUB | 35.5125 | | USD | 1.0000 | | ZAR | 10.1056 | | View Current Currency | | Metal Rates Cash Seller & Settlement | | Zn | USD 1077 | | | Ni | USD 10980 | | | Sn | USD 10800 | | | Al | USD 1308 | | | Cu | USD 3125 | | | View Current Metal Rates | | Steel Futures | | NCDEX | 23900 (19-Jan) | INR | 0 |  | | DGCX | 480 (29-Jan) | USD | 0 | | | LME-M | 325 (29-Jan) | USD | +5 |  | | LME-F | 295 (29-Jan) | USD | 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 iron ore spot FOB prices surge almost by 10% in January - 31 Jan 2009 It is reported that spot prices of Indian iron ore fines FOB East Coast have firmed up during last 25 days of January 2009.
Iron ore fines
| Grade | Change | %
| | Fe 63.5/62.5% | 6 | 9.5%
| | Fe 61 / 60 % | 2 | 3.7%
| | Fe 59 / 58 % | 4 | 8.5%
| | Fe 58 / 57% | 4 | 9.8%
| | | |
Change is as on January 30th as compared to January 5th 2009
Change is in the FOB East Coast Indian rates
Change is in USD per tonne
The surge is attributed to renewed Chinese buying interest before proceeding on their week long Spring break. As per market indications, the upward trend is likely to be maintained when the market opens next week.
To keep tab on domestic iron ore prices at Bellary and Burbil as well as prevailing FOB levels east Coast of India 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)
The Cheetah leaves its mark at Vijaynagar plant of JSW Steel - 31 Jan 2009 January 27th 2009 became a historic day in the history of JSW Steel when its final leg of the 1.5 million tonne per annum Recovery type Coke Oven Battery was commissioned.
In addition to this, JSW also commissioned its 2.81 million tonne per annum steel making shop under the Project Cheetah banner on January 28th 2009. A tremendous amount of untiring efforts have gone into making of the Project a success. The overall Project for Steel melt shop was completed in a record of 31 months from the date of contract, following 2 months of Global Slowdown too. The fast pace can be attributed to the timely completion of Civil and Structural activities ,both of which achieved record highs of 8854 cubic meter and 3683 tonne in the peak months out of 1.4 million cubic meter and 60,000 tonne of total scope.
The sub units under SMS #2 include the Hot Metal Desulfurization, 175 tonne Converter and the LHF unit. On the Casting side, JSW commissioned its 8 strand billet caster on January 28th 2009 which is the first of its kind in India and also its slab caster on January 29th 2009 which is capable of making slabs with 2200 millimeter width and 300 millimeter thickness. Both being supplied by Concast AG and SMS Demag respectively.
In the pipeline is the Blast Furnace of 2.8 million tonne per annum capacity, which is till date the largest furnace in India and is slated to start production in mid February 2009. Supporting the same would be the Sinter Plant of 204 square meters from Outokumpu which is already commissioned and the Lime Calcination units from Cimprogetti.
With financial results already announced by JSW, it is already foraying into developing markets for its Long Products which are its new offerings. The new Wire Rod Mill of 0.6 million tonne per annum capacity capable of producing rounds from 5.5 millimeter to 22 millimeter using the latest technology like reducing and sizing stand and with a coil weight of 2.5 tonne was commissioned recently in November 2008 and has already booked a series of orders from esteemed clients. JSW is also going to flag off its Bar Mill in the month of March 2009 which is a 0.9 million tonne per annum capacity from M/s Morgan, USA and M/s Techint, Italy. It also is one of the best mills in the world which can produce TMT, Rounds, RCS and equal angles of 50*50*5 to 90*90*9 millimeter. The mill is supported by level 2 automation.
Meanwhile, with all the hurdles of Global Economic Slowdown, JSW emerges as the forerunner in realizing its dream to make Indian Steel industries stand more firm in the international arena. The smooth start up of the SMS #2 has given new vigor to the entire team and very soon JSW is going to restart its works for achieving the 10 million tonne capacity.
BIS rule for import of steel items into India - 31 Jan 2009 Bureau of Indian Standard, under Indian ministry of consumer affairs, food and public distribution’s, has published two orders No SO 2172(E) and 2173(E) on September 9th 2009 making BIS certification mandatory for many categories of steel. These orders are called Steel and Steel Products (Quality Control) order 2008.
SO 2172(E) – With effect from September 12th 2008
I | Indian Standard | Title
| | 1785(Part 1) | Plain hard drawn steel wire for pre stressed concrete- Part 1 - Cold drawn stress relieved wire
| | 1785(Part 1) | Plain hard drawn steel wire for pre stressed concrete- Part 2 - As drawn wire
| | 5003 | Indented wire for pre stressed concrete
| | 6005 | Uncoated stress relieved strand for pre stressed concrete
| | 13620 | Fusion bonded epoxy coated reinforcing bars
| | 14268 | Uncoated stress relieved low relaxation seven ply strand for pre stressed concrete
| | |
SO 2173(E) – With effect from February 12th 2009
| Indian Standard | Title
| | 277 | Galvanized steel sheets (Plain and corrugated)
| | 648 | Cold rolled non oriented electrical steel sheet and strip - Fully processed type
| | 1786 | High strength deformed steel bars and wires for concrete reinforcement
| | 1993 | Cold reduced electrolytic tinplate
| | 2002 | Steel plates for pressure vessels for intermediate and high temperature series including boilers
| | 2041 | Steel plates for pressure vessels used at moderate and low temperature
| | 2062 | Hot rolled low, medium and high tensile structural steel (Excluding bars & rods of diameter or thickness less than 6mm and angle below 50x50x6mm
| | 2830 | Carbon steel cast billets, ingots, blooms and slabs for rerolling into steel for general structural purposes
| | 2831 | Carbon steel cast billets, ingots, blooms and slabs for rerolling into low tensile structural steel
| | 3024 | Grain oriented electrical steel sheet and strip
| | 15391 | Cold rolled non oriented electrical steel sheet and strip - Semi processed type
| | |
These orders prohibit manufacturing, storage, sale and distribution of certain steel products and the gist is as under
1. No person shall by himself or through any person on his behalf manufacture or store for sale, sell or distribute any steel and steel products, which do not conform to the specified standards and so not bear standard mark of BIS.
Provided that nothing in this order shall apply in relation to export of steel and steel products requited for export, which conform to any specification required by the foreign buyer and such specification shall not in any case be less than the specified standard.
2. The sub standard or defective steel and steel products which do not conform to the specified standard shall be disposed of as scrap
3. All manufacturers of steel and steel products shall make an application to the Bureau for obtaining license for use of the standard mark, if not already obtained
It is reported that some of the associations, representing user industries, are urging the government to defer implementation of this rule. Unconfirmed reports point to a possibility of 12 month extension in implementation date
Usha Martin Q3 sales up by 33% - 31 Jan 2009 It is reported that Usha Martin Limited has posted satisfactory performance considering the current market scenario.
The key highlights of consolidated financials for the quarter ended December 31st 2008 are
1. Net sales up by 33.0% to INR 738.33 crore
2. PBT up by 3.7% to INR 56.79 crore
3. PAT down by 5.2% to INR 39.08 crore
During the 9 months of the financial year 2008-09, the consolidated profit before tax increased to INR 236.41 crore from INR 172.33 crore and Profit after tax at INR 156.51 crore from INR 124.86 crore. The net sales increased to INR 2243.39 crore from INR 1636.27 crore, registering a growth of 37.1%.
During the quarter III of the financial year 2008-09, the standalone profit before tax stood at INR 38.70 crore from INR 42.02 crore and profit after tax stood at INR 26.74 crore from INR 32.45 crore. The net sales increased to INR 512.93 crore from INR 402.65 crore, registering a growth of 27.4%.
During the nine months of the financial year 2008-09, the standalone Profit before tax increased to INR 182.95 crore from INR 137.77 crore and profit after tax to INR 125.29 crore from INR 100.53 crore. The net sales increased to INR 1597.18 crore from INR 1162.83 crore, registering a growth of 37.4%.
It has provided foreign exchange loss of INR 11.50 crore during the quarter and INR 67.35 crore during the nine months period on account of valuation of foreign currency loans and trade exposures, as per AS 11 as against gain of INR 6.80 crore and INR 30.75 crore in the corresponding periods last year.
The other key highlights of the quarter under review:
1. All the subsidiaries continued to perform well.
2. Global Wire Ropes production grew by 4% compared to corresponding period of previous year.
3. Operational PBDIT margin at 20.0%
4. Slow down in auto sector has affected the steel volume and margins.
5. Value added product share at 58 % of steel produced.
6. Coal mine integration is in progress.
Meanwhile, Usha Martin has manufacturing facilities at Ranchi, Jamshedpur, Hoshiarpur, UK, Thailand, UAE and USA. It has created a worldwide distribution, service and marketing network spread across the US, UK, Europe, Africa, the Middle East, South East Asia and Australia.
(Sourced from Moneycontrol.com)
JSW update on key developments for 2009 - 31 Jan 2009 JSW restored the production to normal level in January 2009 by restarting the 2 furnaces temporarily shut down in November 2008.
Already commissioned sinter plant, coke oven batteries, wire rod mill, raw material handling systems, utilities forming part of the expansion project to 6.8 million tonne per annum. It is scheduled to commission the steel melt shop, blast furnace and the bar mill in Q4 FY 2008-09.
On commissioning of the expansion project, JSW Steel will be the largest steel Company in private sector in India with 7.8 million tonne per annum steel production capacity. The new hot strip mill with 5 million tonne per annum capacity being implemented in 2 phases and the first phase is expected to be ready during the period December 2009 to March 2010.
However, the expansion project to 10 million tonne per annum at Vijaynagar works along with beneficiation plant and power plant will now be commissioned during the period October 2010 to March 2011. All other green field projects are currently under review and will be taken up at appropriate time on achieving financial closure and on improvement of market conditions.
2nd Summit on Mining to Steel Making 2009 - 31 Jan 2009 Steel guru as official media partnership is proud to present “2nd Summit On Mining to Steel Making 2009” which is organized by Indian Chamber of Commerce on 18 February 2009, 1000 Hrs at Hyatt Regency, New Delhi
Steel has melted like ice in the recent global meltdown! That perhaps is the reason and right time to have best of the strategies in place and discuss the short term and medium term challenges for the Indian Steel Industry with the leading industry players, stalwarts of the sector and policy makers. To discuss such strategies and draw a suggested road map Indian Chamber of Commerce is organizing 2nd Summit on “Mining to Steel Making 2009” on 18th February 2009 at Hotel Hyatt Regency, New Delhi. The summit would discuss the following agenda.
Predictions on demand and supply for 2009 and beyond
1. Key challenges to plan future strategies for your organization
2. Understand restraints and opportunities due to recent market collapse
3. Role of Small & Medium scale Steel making Plants.
The confirmed dignitaries are
1. Mr Ram Vilas Paswan, Hon’ble Minister of Fertilizers Chemicals & Steel, Government of India
2. Mr Jitin Prasada, Hon'ble Minister of State for Steel, Government of India
3. Mr P K Rastogi, Secretary, Ministry of Steel, Government of India
Summit Chairman:
Mr. Vishambhar Saran, Senior Vice President-ICC & Chairman-Visa Steel Limited.
Among the other invited dignitaries/speakers are
1. Mr Sis Ram Ola, Hon’ble Minister for Mines, Ministry of Mines GoI
2. Mr BK Handique, Minister of State for Mines, Ministry of Mines, GoI
3. Mr SS Palanimanickam, Minister of State for Finance, Ministry of Finance, GoI
4. Mr Shantanu Consul, Secretary, Ministry of Mines, Government of India
5. Mr SK Roongta chairman of SAIL.
6. Mr PS Bhattacharyya CMD of CIL
7. Mr Naveen Jindal, Vice Chairman and MD JSPL
8. Mr Rana Som CMD of NMDC
Send your Confirmation for Participation to
Mr. Shibaji Dasgupta, Mo: 983111 0883; LL: 033 22534254/ 22534278
Fax: 033 2231 3377/3380;
E-mail:sme@indianchamber.net/econ2@indianchamber.net
Address: Indian Chamber of Commerce, ICC Towers, 4, India Exchange Place, 9th Floor, Kolkata: 700001
NTPC power plants facing sever coal shortages - 31 Jan 2009 ET reported that an acute shortage of coal that is hampering power generation at several plants of National Thermal Power Corporation may force the country’s largest power producer to shut down some units temporarily.
As per report, plant load factor at different NTPC plants have come down to about 80% resulting in 20% lower production than the installed capacity. A PLF of 100% means optimum utilization of the installed capacity.
Mr UP Pani general manager of Kahalgaon plant in Bihar said that “We are running on a hand to mouth situation. There is no stock of coal for the last three weeks. The plant gets about 24,000 tonne of coal per day, against the requirement of 34,000 tonne, which is not sufficient even for a day.”
As per report, NTPC’s Farakka, Talchar and Singrauli plants are also facing the same problem.
The report added that NTPC is not the only power producer which is hit by coal shortage. The apex power body Central Electricity Authority indicates that the number of coal fired thermal plants having a critical stock of less than 7 days is 39, including 26 such plants that have stock for less than four days. On several of these locations plants operate only if they get coal on a particular day. A power plant ideally needs to have a stock enough to last 15 days of operations.
(Sourced from Economic Times)
Directory of Overseas Scrap Suppliers to India - 31 Jan 2009 India is large market for import of steel scrap and this is the directory which is going to help many interested group to know this industry.
Published in September 2008, 'Directory of Scrap Suppliers to India' has been comprehensively researched and prepared, to bring you a fully up to date guide to overseas scrap supplier.
Why spend hundreds of hours searching for new contacts? Invest in a copy TODAY!
Content:
This report covers name and product details of 1191 overseas scrap suppliers to India in alphabetical as well as location wise order. Look at the information you'll get in the 'Directory of Scrap Suppliers to India'
• Company name -1191 entries
• Address-1191 entries
• Email-1074
• Phone number-1140
• Fax number -431 entries
Format:
PDF File
Total no of pages – 545
Delivery by Email on receipt of payment
Price:
USD 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.
TATA Motors bags INR 22 billion DTC contract - 31 Jan 2009 My Iris reported that TATA Motors has bagged INR 22 billion orders from the Delhi Transport Corporation in order to supply 1,625 ultra low floor buses and their maintenance for 12 years.
As per report, the contract comprises INR 9 billion for the 1,625 buses and about INR 13 billion for a 12 year maintenance contract for these buses. The company’s principal activities are to manufacture and market heavy, medium and light commercial vehicles, utility vehicles and passenger cars. It operates in 2 segments: automotive and others.
The report added that this is the second consecutive occasion that the DTC has entrusted TATA Motors with its prestigious order, aimed at revamping the city’s transportation system. The first such order by the DTC in 2007 for 650 such buses was won by TATAT Motors and the company fulfilled the order in batches, as per schedule in 2008.
(Sourced from myiris.com)
ABG Shipyard reports excellent Q3 results - 31 Jan 2009 Exim News Service reported that ABG Shipyard Ltd has 54.3% in its EBIDTA to INR 124.7 crore in the Q3 of 2008-09, as against INR 80.8 crore during the same period of 2007-08.
As per report, the net sales during the quarter increased by 77.8% to INR 488.9 crore from INR 275 crore in the corresponding quarter of 2007-08. The net profit during October-December stood at INR 46.1 crore.
In April to December 2008, the net sales totaled INR 1,041.3 crore, as against INR 690.2 crore, showing a handsome increase of 50.9% from the corresponding period of 2007-08. The net profit for the Q3 stood at INR 119.1 crore, as against INR 114.6 crore, indicating an increase of 3.9%.
Mr Dhananjay Datar CFO of ABG Shipyard said that the total order book position, as on December 31st 2008, stood at INR 11,355 crore.
(Sourced from Exim News Service)
India to join International Renewable Energy Agency - 31 Jan 2009 The Cabinet has approved the proposal for India joining the International Renewable Energy Agency and for contributing USD 112,500 in the first year to this world body.
This membership of IRENA will enable India to forge partnerships with other member countries at a multilateral level for accelerating development and deployment of Renewable Energy technologies.
Keeping in view IRENA’s objectives and that it would be the only global inter governmental body dedicated to renewables, India actively engaged itself in the consultation process and has decided to join IRENA as a founding member. Development of renewables with support of the global players and lead countries would have a positive impact on the country’s energy security position in accordance with our nationally designed program.
The governance structure of IRENA is much akin to various multilateral organizations including those of the UN.
Ashok Leyland Q3 profit down by INR 18.86 crore - 31 Jan 2009 Ashok Leyland Ltd has announced that the Unaudited financial results for the quarter ended December 31st 2008. It has posted a net profit of INR 188.682 million for the quarter ended December 31st 2008 as compared to INR 1202.172 million for the quarter ended December 31st 2007.
It total income has decreased from INR 18437.848 million for the quarter ended December 31st 2007 to INR 10114.319 million for the quarter ended December 31st 2008.
Recession reports - Moody changes credit outlook for Indian banks to negative - 31 Jan 2009 Zee News reported that Moody's recently changed the fundamental credit outlook for the Indian banking system to negative from stable, primarily citing the economic downturn and higher loan delinquency rates as reasons.
Moody's Investors Service in a statement said that "The fundamental credit outlook for the Indian banking system has been changed to negative from stable."
It said that the change reflects the deceleration of the Indian economy in the context of the global financial turmoil and an increasingly bleak economic outlook combined with higher delinquency rates, indicates a potential weakening in the asset quality of Indian banks.
According to the rating agency, the negative outlook expresses its view on the likely future direction of fundamental credit conditions in the banking industry over the next 12 to 18 months.
Mr Nondas Nicolaides VP of Moody's or senior Analyst in the Financial Institutions Group said that "The global deleveraging process has caused a large capital outflow from India since October 2008 and, as a result, there has been a tightening in the provision of credit to the real economy from banks and higher capital cost for corporates."
Mr Nicolaides said that these factors are likely to put a strain on the country's banking system's asset quality, with higher levels of non-performing loans.
He said that "Moreover, a reversal of the favorable credit cycle in India that has underpinned the robust loan growth of the past few years has gradually been taking place, combined with weakening business and corporate earnings."
The statement said that Moody's stress testing of the bank's asset quality suggests that their financial profiles are likely to come under pressure, which could trigger negative rating actions.
(Sourced from zeenews.com)
Mr Jairam Ramesh Inaugurates Gridtech 2009 - 31 Jan 2009 GRIDTECH 2009 a 2 day International Exhibition and Conference is now on at Pragati Maidan, New Delhi to showcase new technologies in Transmission, Distribution, Load Dispatch and Communication. Organized by POWERGRID with the support of Ministry of Power and IEEMA, it would provide a platform for demonstrating and discussing the emerging technologies in power transmission and distribution section and also in synergic areas of load dispatch, telecommunications, application software etc.
Delivering the inaugural address, Mr Jairam Ramesh minister of State for Power and Commerce called for a strong transmission and distribution network to support capacity addition so that the goal of power for all at an affordable cost can soon be achieved. He said that a proposal for setting up an online testing facility for transformers is being considered with the investment of INR 200 crore.
In his address, Mr GB Pradhan additional secretary, Ministry of Power emphasized the need for pushing up R&D. He also called upon state transmission utilities to keep pace with the National Grid.
The event received overwhelming response from manufacturers and experts from India and abroad. It is expected to attract more than 25,000 professionals from international or national manufacturers, utilities, academic or financial institutions, experts, policy makers etc. The exhibition shall give rare opportunity to bring all the manufacturers, vendors and experts in the field of transmission and distribution and related synergic areas to display the emerging technologies and share their experience/expertise.
However, more than 100 exhibitors shall be showcasing their State of the Art products, new development systems in the field of transmission, grid management and the new technology introduced lately and the products that are under development. About half of the exhibitors are from abroad. The conference shall provide atmosphere for candid exchange of ideas or experiences with International or National experts on new technologies in this field. About 40 technical papers on emerging technologies in the field of transmission, distribution, smart grid and communication are to be presented during two day conference by various International and National experts.
GRIDTECH provides a unique opportunity for the Power Utilities, Manufacturers, Research Institutions, Academicians, Consultants etc. in this field to get exposed to State of the Art technologies like Smart Grid, substation automation, transmission line, power system protection HVDC system, modern distribution management etc.
PGCIL Q3 net profit down by INR 372.35 crore - 31 Jan 2009 Power Grid Corporation of India Ltd has announced that the unaudited financial results for the quarter ended December 31st 2008. It has posted a profit after tax of INR 3723.50 million for the quarter ended December 31st 2008 as compared to INR 3842.80 million for the quarter ended December 31st 2007.
It total income has increased from INR 11847.70 million for the quarter ended December 31st 2007 to INR 15626.70 million for the quarter ended December 31st 2008.
MEPS sees steel price bottoming out in January - 31 Jan 2009 UK based MEPS said that “US transaction values continue to fall, although the descent is less startling than of late. Some market players feel that even though demand is still far from robust, the bottom may have been reached and prices will settle at this lower level. Mill outages should start to create tighter supply. Moreover, service centre inventories are very low because distributors sold off surplus material cheaply in December and now have gaps in their stocks. Nevertheless, delivery lead times have been cut dramatically, with activity in the main steel consuming sectors showing no real signs of revival. There are very few foreign offers because of low demand and weak prices.”
It added that “Market conditions are not favorable for the Canadian mills who are laying off workers. Production utilization rates have fallen to around 45% with domestic order books in poor shape. Although customers' inventories are dwindling, buyers are still limiting their purchases. Nevertheless, strip mill transaction prices are starting to hold, albeit at very low levels. However, a major cause of concern is the credit worthiness of customers.”
MEPS said that “Chinese flat product values have started 2009 on a positive note. Several mills that had cut output are now restarting their production, encouraged by the demand boost caused by the government's fiscal stimulus package. In contrast, steel exports continue to contract and overseas sales of manufactured goods are also declining due to the global economic crisis. The market will officially close between January 25 and 31 for the Chinese New Year celebrations but many companies are winding down earlier than this.”
Japanese steel demand is falling rapidly, due to the slump in all the major consuming sectors. The mills have deepened their output curbs to match declining sales and to try to improve the massive stock overhang. Inventories of strip mill products held by local steelmakers and distributors, as end November, moved up by 2.1 percent compared to October. Quayside stocks of imported flat products decreased marginally in the same time frame, despite fears that the strong yen would encourage overseas mills to push more steel into the Japanese market.
It said that “As demand from South Korean steel consumers looks as if it will weaken further, Posco is considering stepping up its production cuts for the first half of 2009. The company has said it plans to keep domestic prices unchanged for the foreseeable future. A small revival is expected in the Taiwanese market, where recent limitations on output have tightened supply. In addition, more export opportunities are anticipated after the Lunar festivities because Chinese mills are putting up their prices to Asian customers, making Taiwanese material more attractive. CSC has delayed negotiations with overseas customers for February/April deliveries until after the holidays.”
MEPS also said that “Polish steel demand is described as not very high". Exports of steel intensive manufactured goods fell rapidly throughout the final quarter of 2008 and further deterioration is predicted for this year. ArcelorMittal has applied lower basis prices this month for hot and cold rolled coil. In the Czech/Slovak markets, domestic values have followed developments in adjoining countries as local mills lost the struggle to stop the slide. Producers are now carrying some excess material. Resale profits are dropping as service centres try to off-load stock in order to generate cash.”
MEPS said that “In Western Europe, many steelmakers and manufacturers took much longer breaks than usual over the Christmas/New Year holiday period because of the current economic downturn. Consequently, business was slow in the steel market at the start of 2009 with few transactions concluded.”
(Source: MEPS - International Steel Review)
Vale to acquire Corumba iron ore assets from Rio Tinto - 31 Jan 2009 Companhia Vale do Rio Doce announced that it entered into a purchase and sale agreement with Rio Tinto Plc to acquire iron ore and potash assets through an all-cash transaction. The price to be paid for the iron assets amounts USD 750 million, while the potash deposits will be acquired for USD 850 million, totaling USD 1.6 billion.
100% of the Corumbá open pit iron ore mining operations state of Mato Grosso do Sul, Brazil, with associated logistics assets, including port and barges.
Corumbá produced 2.0 million tonnes of iron ore in 2008 and has a nominal capacity to produce 2.5 million tonnes per year, with proven and probable reserves at the end of 2007 of 210 million tonnes at 67.0% Fe content¹, and mineral resources of 583 million tonnes at 62.7% Fe content. It is a world-class asset, with high Fe content and rich in direct reduction lump ores, a highly valued type of iron ore that is becoming increasingly scarce around the world.
The logistics assets enable Corumbá to be 70% self-sufficient in the transportation of iron ore down the Paraguay River. The logistics arm is strategic in a region where there is strong seasonal volatility in freight availability and prices.
Corumbá is located near our Urucum iron ore and manganese operations. There are potential synergies to be exploited, through augmented asset and portfolio flexibility, lower administrative and logistics costs and rationalization of the use of reserves. The acquisition of Corumbá is subject to the approval of certain government entities in Brazil.
South Korea retains No 1 position in shipbuilding nation - 31 Jan 2009 According to a London based market researcher Clarkson Plc, South Korea retained its No 1 ranking in the global shipbuilding industry in terms of new orders, order backlogs and volume of vessels built in 2008.
As per report the nation's shipbuilders such as Hyundai Heavy Industries won a combined 17.5 million compensated gross tons in new orders last year, accounting for 41.1% of all global new orders.
Chinese shipbuilders took the second spot with orders totaling 14.9 million CGTs last year, outpacing Japanese rivals which won a combined 4.89 million CGTs.
Clarkson said that South Korean shipbuilders' combined order backlogs totaled 67.7 million CGTs, making up nearly 35.8% of 189.2 million CGTs in global backlogs. China followed with 60.73 million CGTs.
South Korea home to seven of the world's top 10 shipyards has clinched record high orders in the past few years because of strong demand for crude carriers and offshore exploration equipment amid lofty oil prices.
But new shipbuilding orders worldwide fell 52% last year, hit by a global economic crisis. The orders which South Korean shipbuilders won also fell 47% last year.
By shipbuilder, Hyundai Heavy Industries, the world's largest shipyard, had 12.93 million CGTs in order backlogs, trailed by Samsung Heavy Industries with 10.43 million CGTs and Daewoo Shipbuilding and Marine Engineering with 9.98 million CGTs.
(Sourced from Korea Times)
Kremikovtzi workers places bets on Smart Group - 31 Jan 2009 Travel bgnewsnet cited Mr Lyudmil Pavlov chairman of the KT Podkrepa workers union in the plant as saying that Ukrainian company Smartgroup is the one that I would place my bets on being the future investor in Kremikovtzi.
The government that holds the plants key number of shares in the company is currently deciding between Smart Group and Brazil's CSN. Both companies have placed reasonable offers.
According to Mr Nina Radeva deputy minister of economics of Bulgarian, talks with Smart Group seem to be going way smoother than the ones with CSN, whose representatives in fact didn't show up at all to the talks.
Meanwhile the syndicates within the plant’s patience are running out and they claim they will re-initiate their protests next Tuesday.
According to Mr Pavlov, they expect that an agreement with either investor will be made by then.
(Sourced from Travel bgnewsnet.com)
Rio Tinto iron ore train derailed in Australia - 31 Jan 2009 Reuters reported that a Rio Tinto iron ore freight train was derailed in Western Australia's Pilbara region, halting the supply of ore from most of its mines to port.
Mr Gervase Greene, spokesman of Rio Tinto said that between 50 and 60 ore cars in a train of about 230 fully loaded cars derailed late on Thursday about 80 kilometers north of the outback mining town of Tom Price
Rio Tinto said that it was too early to say how long it would take before operations resumed on the main line, but added that the clean up was expected to take several days.
Mr Greene added that "At this moment, all loading at the port is continuing as per normal. Shipments are not expected to be affected at this point but it all depends on how long the blockage is."
Rio Tinto also said that nobody was injured in the incident.
(Sourced from Reuters)
Ryerson to open 2 new service centers at Utah and Texas in US - 31 Jan 2009 Ryerson Inc a leading distributor and processor of metals in North America announced it will open two new service center locations in the United States by the end of the first quarter of 2009.
Ryerson also announced that it recently doubled its stake in Chinese venture VSC-Ryerson China Limited from 40% to an 80% controlling interest.
Ryerson said that the new facility in Clearfield, Utah will serve the Salt Lake City metropolitan area and will offer a full range of aluminum, stainless and carbon products as well as burning and sawing services. The second new site in McAllen, Texas will serve the area from Del Rio to Brownsville on both sides of the Texas border.
Mr Stephen Makarewicz CEO of Ryerson Inc said that "We are in excellent position right now, having substantially restructured our organization, improved operations across the board and assembled a top-flight management team. Ryerson is very well capitalized, with a strong balance sheet and ample liquidity to pursue new initiatives. While the industry continues wrestling with economic uncertainties, we intend to use this position of strength to our advantage and to the benefit of our customers."
Mr Makarewicz said that "Adding new US service centers in Utah and Texas will allow us to better serve our existing customers and create new opportunities for growth in these markets. The expansion in Asia is another instrumental aspect of Ryerson's growth strategy and one that we believe presents tremendous opportunity."
Mr Frank Munoz president and CEO of VSC Ryerson China Limited said that "With our substantial footprint in China, Ryerson can accelerate its global growth strategy and continue to effectively serve the Chinese market, as well as our international and US customers.”
He added that “The increased Chinese investment comes one year earlier than originally envisioned. The VSC-Ryerson partnership agreements formed in 2006 provided Ryerson the option to become majority owner in late 2009. At the end of 2008 the partners mutually agreed to allow Ryerson to immediately acquire majority control and moved the option date up one year.”
Ryerson and its affiliates increased ownership in VSC-Ryerson China Limited from a 40% stake held since the joint venture was formed in 2006 to an 80 percent controlling interest moving forward. VSC-Ryerson generated revenues in excess of USD 160 million in 2008.
FMG sets 39 million tonne iron ore output target - 31 Jan 2009 Reuters reported that Australia's Fortescue Metals Group production for the second half was 23.8 million tonnes, taking the output target for the full year to June 30, 2009 to 39 million tonnes.
Fortescue, Australia's third largest iron ore miner also said its mining costs averaged AUD 30.81 per tonne in the quarter ended December 31st 2008.
(Sourced from Reuters)
MEA production of crude steel falls by more than 4% in 2008 - 31 Jan 2009 Arab Steel reported that the Arab countries produced together approximately 16.4 million tonnes of crude steel in 2008 as compared to 17.1 million tonnes in 2007 thus down by 4.14% YoY.
As per the report, the result of most Arab countries in 2008 was low compared to 2007, except Qatar's production of crude steel amounting to 1.147 million tonnes.
In 2008, Egypt produced 6.198 million tonnes, with a slight fall of 0.4% compared to 2007, amounting to 6.224 million tonnes.
Production of Saudi Arabia saw a fall of 2.97% to reach 9.89 million tonnes compared to 6.07 million tonnes in 2007.
Libya produced 1.137 million tonnes with a fall of 9.04% compared to the production of 2007, amounting to 1.25 million tonnes.
Production of Morocco amounted to 478,000 tonnes with a fall of 6.64% compared to production of 2007, amounting to 512,000 tonnes.
The biggest fall took place in Algeria's production of crude steel, which amounted to 49.45%. ArcelorMittal’s Annaba produced 646,000 tonnes in 2008 compared to 1.278 million tonnes in 2007.
The other Arab countries, Jordan, Syria, Kuwait, Emirates, Sultanate of Oman, Yemen, Sudan and Tunisia maintained the same low level of production. Their production, combined, amounted to 640,000 tonnes, up by 2.9% compared to 622,000 tonnes in 2007.
The fourth quarter of 2008 saw the biggest fall of crude steel production, which amounted to 23.41% with a production of 3.12 million tonnes compared to 4.173 million tonnes in the same period of 2007. This is due to the fact that companies determined to cut production to face the extremely low demand and prices caused by the global financial crisis and to balance the increase seem in the production of these companies in 1st half of 2008.
The fall in the production of the fourth quarter of 2008 amounted to 15.8% in Egypt, 27.76% in Saudi Arabia, 21.3% in Qatar, 3.57% in Libya, 62.65% in Algeria and 58.12% in Morocco, compared to the same period of 2007
(Sourced from www.arabsteel.com)
Beijing to unveil revitalization plan for shipbuilding sector soon - 31 Jan 2009 It is reported that China's shipbuilding industry's revitalization plan has been drafted following the release of support plan for auto industry and is to submit to the State Council for approval.
One principal in Zhejiang Development and Reform Commission said that it will strictly control the approval of new ship units and expanding projects in light of the current market downturn.
Mr Zhang Guangqin chairman of China Shipbuilding Association said that the revitalization plan for the sector covers a series of policies arranging from interior demand expanding, finance, tax and scientific research and mapped out a detailed development trend for China's ship industry in the coming 3 years.
China will establish development fund and financing & chartering company for the sector to ensure key shipbuilders orders completion and delivery. More Science and technology investments would be earmarked to help key enterprises' industrial upgrading and encourage mergers & acquisitions.
As the third largest shipbuilding country in the world, China is suffering the huge orders losses, leaving the ship producers into the hardest time in the history. Shipyards in Zhoushan, renowned as the City of Shipbuilding in China, are quiet with many ships unfinished at the moment, the traditional hot time for the sector.
An official said that domestic shipbuilding mills can hardly secure new orders after 2011 due to the contract suspension of European shipping industry impacted by the world financial crisis. So far, most Chinese shipbuilders have seen their delivery time extending to 2010. That means the international competition will be fiercer in days to come and the strong one will survive from the competition, while those inefficient ship-makers are set to be washed out.
According to the statistics from Singapore Pacific Basin Shipping Limited in early 2009, there are 382 new ship orders have been cancelled worldwide and China takes up half of the contract default, or 20 million DWT. Zhoushan COSCO, the subsidiary of Singapore COSCO Corporation has received cancellation for four ships and delaying requests for delivery for 12 vessels within one month.
A senior insider said that China's shipbuilding industry has expanded blindly before 2008 and the market downturn has helped squeezing out the bubbles in the sector. Only in Zhejiang province, there are nearly 2,000 private shipbuilding mills and the repeated construction can be seen everywhere with shrinking profits.
Compared with Japan and Korea, China owns cheap but high quality labors and rich land resources. Besides, the industry also enjoys the 17% export tax rebates, which help ensure the profit margin in the sector. As per the relevant surveyed statistics, the market shares of Chinese ship completion, new contracting tonnage and new building order books account for 19%, 42% and 28% of the world's total volume respectively in the first half of 2008, ranking the second all over the world.
(Sourced from www.Mysteel.net)
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Yokogawa Bridge and Sumitomo Metals to form JV in bridge business - 31 Jan 2009 Yokogawa Bridge Holdings Corp and Sumitomo Metal Industries, Ltd passed a resolution to form a joint venture in bridge business at their respective meetings of the Board of Directors and entered into a basic agreement with regard to forming a joint venture
YBHD Group has been engaged in the bridge business for about 100 years and is a leading company in the industry with top class technology and know how that have been accumulated through its extensive track record and strong sales force. Sumitomo Metals, in comparison, is one of the world's top class steel makers and is engaged in a bridge business where the company has a state of the art factory that boasts the industry's highest productivity. It has also been developing distinctive products by using its application technology for steel materials that was cultivated in the steel business on the back of its stable procurement capability.
At present, the bridge industry is mired in a harsh environment caused by a reduction in public works and other factors. Furthermore, the Ministry of Land, Infrastructure and Transport and other orderers have started to adopt the comprehensive bidding evaluation system in earnest. Owing to its progress, it has become important, more than ever, for bidders to understand customers' exact needs and make excellent proposals that are supported by comprehensive technology and cost competitiveness.
YBHD Group and Sumitomo Metals have reached the conclusion that they need to strengthen their bridge businesses: YBHD Group's comprehensive technology and sales force will be combined with Sumitomo Metals' high productivity and strong product development capability through the formation of a joint venture between the two companies. YBHD will hold a 60% stake in the joint venture company, which will then participate in the YBHD Group. The bridge business of YBHD Group, which will be bigger in scale, is expected to benefit from enhanced negotiating power relating to procurement and cost reduction. Its capability to make proposals is also likely to improve on the back of its integrated technological capability, which spans material development to construction.
This move will likely contribute significantly to an increase in the corporate value of both YBHD and Sumitomo Metals. Furthermore, YBHD Group has major factories in western and northern Japan, while Sumitomo Metals has a bridge factory in eastern Japan. From the viewpoint of geographical economic efficiency, synergies will be significant and are expected to provide an advantage in terms of competition in the future.
1. According to the basic agreement, a final contract is scheduled to be concluded on March 31st 2009.
2. Sumitomo Metals will carry out an absorption-type company split of its bridge business and this business will be succeeded by its fully owned subsidiary, Sumikin Bridge Center Co Ltd on July 1st 2009. The latter plans to change its corporate name to Sumikin Bridge Co Ltd
3. Sumitomo Metals will sell 60% of the shares outstanding of Sumikin Bridge Co Ltd to YBHD on October 1st 2009 and make it a joint operating company. Its corporate name from October 1st 2009 will be determined later.
Rio Tinto coking coal price cut may signal reduction for Brazilian mills - 31 Jan 2009 Bloomberg quoted Raymond James & Associates Inc said Rio Tinto Group’s decision to slash coking coal prices for India’s JSW Steel Ltd. before contract expiration may signal Brazilian steelmakers will get similar reductions from suppliers.
Mr Francisco Schumacher an analyst at Raymond James said “This is very positive news for Brazilian steelmakers, even if they don’t get price cuts before their annual contracts expire, because it paves the way for lower prices for this year’s contracts. Brazilian steelmakers are more competitive than their global rivals when the price of coking coal drops more than iron ore.”
Mr Schumacher said ‘‘Because of a slump in demand and lower prices for raw material in general, we expect 2009 coking coal prices to decrease 42%. Iron-ore prices may drop only 10%. Coking coal accounts for 22% to 25% of costs for Brazilian steelmakers, while iron-ore represents about 12% on average.”
Mr Seshagiri Rao Finance Director of JSW recently said that coking coal prices will be cut 43% for the three months ending March 31st to USD 175 per tonne. The reduction may prompt other steelmakers to press BHP Billiton Ltd, Rio Tinto and other mining companies for cuts in iron-ore and coal prices before contracts expire.
(Sourced from Bloomberg)
Interpipe appoints Mr Pell as commercial director - 31 Jan 2009 Leading steel pipe and railway wheel producer Interpipe is pleased to announce the appointment of Mr Duncan Pell to the position of Commercial Director.
Based in Dnepropetrovsk, Mr Pell will be responsible for the pricing policy of the company, coordination of the Sales Department's activities, commercial risk management and implementation of best practice in sales management.
Mr Duncan Pell has over 30 year's experience in the steel industry. Before joining Interpipe he worked as a Commercial Director for Corus Group. Mr Pell has an MBA degree from Warwick University and BA degree in Business Studies from South Bank Polytechnic.
Annual Report on China's Steel Market in 2008 and the Outlook for 2009 - 31 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
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Indian iron ore exporters upbeat on Chinese prospects - 31 Jan 2009 BS reported that with the closed steel mills in China resuming operations gradually, Indian exporters are hoping iron ore shipment to rise at least by 5.5% to match the last year’s level.
In 2008, India’s total iron ore exports were recorded at 104.27 million tonne on high Chinese demand. However, during the 9 months period of the current financial year, total shipment declined by 5.5% to 64.47 million tonne from 68.15 million tonne in the corresponding period last year.
Mr RK Sharma secretary general of the Federation of Indian Mineral Industries said that “Though the demand for iron ore is currently low as Chinese traders are busy celebrating their New Year, we are confident that the shipment would pick up to match at least the last year’s level if not more.”
Mr Sharma said that the biggest advantage for Chinese iron ore importers, who buy about 85% of India’s iron ore shipment is the price of iron ore which is currently quoted USD 30 lower between USD 60 per tonne to USD 65 per tonne than the global benchmark price of USD 90 per tonne to USD 95 per tonne. Thus, large steel mills that contracted long term deal with raw material suppliers are at a loss in the current market sentiment.
(Sourced from Business Standard)
Downsizing deals - Rautaruukki to cut 460 jobs in Finland - 31 Jan 2009 Employer-employee negotiations initiated by Rautaruukki on December 1st 2008 at the Raahe and Hämeenlinna works and at the company's other sites in Finland have now ended.
The negotiations resulted in a decision to reduce the workforce by some 460 persons, with around 250 of these reductions being implemented through various pension arrangements. Temporary layoffs were also decided in the negotiations.
The negotiations resulted in a decision to reduce the workforce at the Raahe Steel Works by some 140 persons. Efforts will be made to carry out all of these reductions through various pension arrangements. At the Hämeenlinna Works, the workforce will be reduced by some 80, with around 50 of these reductions being implemented through pension arrangements. A total of some 240 reductions will be made at other sites, with around 60 being carried out through pension arrangements. The reductions will take place mainly during the first half of 2009. Where possible, efforts will be made through relocation and retraining to help persons facing redundancy find work at the company's other sites.
Due to market conditions, the company will temporarily lay off approximately 400 people at Raahe and around 170 at Hämeenlinna at any one time. Temporary layoffs will affect a total of some 3,200 people at different sites. The time and length of layoffs will vary according to site.
Rautaruukki will assist in the re-employment of persons facing redundancy. Support will include local training programmes carried out in association with the employment authorities. In addition, data about persons facing redundancy will be collected centrally to ensure any vacancies arising in the company are primarily offered to redundant employees.
On December 1st 2008, Rautaruukki announced it had initiated employer-employee negotiations because of rapidly weakening market conditions and in connection with the company's corporate-wide operational excellence program launched in October 2008. As a result of personnel arrangements and other actions to improve operational efficiency, the company recognized non recurring costs of around EUR 11 million in the fourth quarter of 2008.
At the start of the negotiations, it was estimated that a maximum of 520 reductions were needed in Finland. The outcome of the negotiations is a total loss of approximately 460 jobs at the company's Finnish sites. This figure includes the numbers announced today, those announced earlier at the Kurikka unit and the reductions resulting from closure of the steel service centre at Tampere in Finland.
Coal supply from Newcastle to improve - Macquarie - 31 Jan 2009 Bloomberg quoted Macquarie said reported that coal supplies from Newcastle Port in Australia, the world’s biggest export harbor for the fuel. may improve with the end of disruptions caused by rain and equipment.
Mr Jim Lennon London-based analyst in a report said that “Prices at the port rose 8.3% to USD 88.19 per tonne in the week ended January 23rd the highest since the week ended November 14th. Traders have been scrambling to secure coal. Supplies were disrupted last month by rain and “equipment issues.”
Mr Lennon said “Newcastle’s strength is driven by short-term supply issues rather than rebounding demand. The spate of physical buying seems now to have abated and we believe the tightness in Newcastle should resolve itself.”
He said that “Unless there are significant supply disruptions, a Japanese settlement at USD 85 a tonne would appear to defy market logic. Other Asian customers would not accept contracts at such a premium to the market.”
Mr Lennon added that “We continue to think spot prices should retreat toward USD 65 per tonne to USD 70 per tonne and contracts on this basis should be settled at around USD 75 per tonne.”
(Sourced from Bloomberg)
ECA says no monopoly in Egyptian domestic steel market - 31 Jan 2009 Daily Star Egypt reported that after a more than 2 years investigation into the country’s steel market, Egypt’s competition watchdog said that local producers have not engaged in any anti competitive or monopolistic practices.
The Egyptian Competition Authority said in a statement that the existence of agreements between companies working in the production of steel rebars in violation of article 6 of the anti monopoly law could not be proven.
The authority added that there was also no evidence to show that local steel giant Ezz Steel abuse its dominant position in the sector in violation of the law, nor had smaller firms collaborated in anti competitive practices.
The government’s competition watchdog said in the statement that leaps in local steel rebars were mainly due to an increase in production components, specifically billet. Other factors include an upsurge in local demand as a result of growth in construction and real estate sector.
The findings of the investigation into one of the country’s most controversial sectors have been highly anticipated. Some analysts met the verdict with skepticism.
Mr Magdy Sobhi, economist at Al Ahram Center for Political & Strategic Studies said that “This result was unexpected. Everyone thought the authority will at least suspect the presence of some monopolistic practices similar to the case of cement. But to say there is no monopoly at all; no one expected that.”
Mr Sobhi noted that “Statements released by the competition authority are not clear enough. The authority said there was no monopoly in the steel market because there was no demand on imports, saying that means local steel was better priced. This point is not valid.”
He said that “Saying that local steel prices during the period of the investigation were lower than international ones is not correct,” he added. Local steel prices could have been much cheaper than international prices. Consumers saw prices jumping on a monthly basis. Prices were higher than production cost. However, the point is that no one has evidence to prove this.”
In July 2006, Egypt’s trade ministry asked the competition watchdog to investigate price practices in the cement and steel markets.
In August 2008, following a 14 month probe into the cement sector, a Cairo court fined 20 cement industry executives EGP 10 million each for violations of the monopolies law and price fixing. The trial, which began in February 2008, was the first of its kind under an anti monopolies law passed 4 years ago to bring Egyptian law into line with international practices.
(Sourced from www.dailystaregypt.com)
Universal Stainless & Alloy business Outlook - 31 Jan 2009 Universal Stainless & Alloy Products, Inc estimates that sales for the first quarter of 2009 will range from USD 32 to USD 42 million and that diluted EPS will range from breakeven to USD 0.10. In the first quarter of 2008, sales were USD 56.8 million and diluted EPS was USD 0.70. Approximately USD 6 to USD 8 million of the decline in sales from the 2008 first quarter is a result of lower surcharges anticipated in the first quarter of 2009.
The following factors were considered in developing the estimates for the first quarter of 2009
1. The Company's total backlog at December 31st 2008 was USD 75 million as compared with USD 101 million at September 30th 2008. The Company's current backlog mainly consists of semi finished products for rerollers and forgers and tool steel plate for service centers.
2. The Company's forecast is based on average December raw material costs.
3. A two week melt shop outage planned for March 2009 to install certain equipment is not expected to have a material impact on first quarter shipments. The Company's outlook includes approximately USD 300,000 of expenses related to the outage.
Production pruning - Tenaris Algoma shuts down for 2 weeks - 31 Jan 2009 Tenaris Algoma Tubes Inc is suspending operations for the second time in the past six weeks.
The United Steelworkers Local 9548 executive, representing more than 450 production and maintenance personnel inside the Sault Ste Marie seamless tube mill, were advised Tuesday that the mill would be shutting down for two weeks, beginning Sunday.
The Wallace Terrace manufacturer had previously suspended operations for two weeks over the Christmas holiday period, December 20 until January 3 and the workforce was gradually recalled.
Mr Jack Ostroski a USW area coordinator said that "Their order book is weak and the company is looking at cost saving measures to get through tough economic times. It's a tough time for the industry, for seamless and welded-pipe manufacturers alike, gas and oil drilling has dried up because of collapsing prices and the global financial crisis."
(Sourced from saultstar.com)
Xstrata zinc mine production in 2008 hits record - 31 Jan 2009 Platts reported that Xstrata ramped up by 17% to a total of 861,032 m tonnes in 2008 as per its annual results published.
Xstrata put the significant increase in zinc production down to higher output from its Mount Isa and McArthur River mines in Australia and the startup of production at the new Perseverance mine in Canada in July 2008.
Mount Isa zinc in concentrate output climbed to 283,063 tonnes in 2008 from 226,529 tonnes in 2007. McArthur River zinc in concentrate production climbed to 142,460 tonnes in 2008 from 137,737 tonnes in 2007, despite the expansion project at the open pit lead and zinc mine grinding to a halt in December 208 after the Australian federal court ruled that Xstrata had failed to go through the correct process before embarking upon the expansion. The project was given conditional approval to go ahead by the Australian government on January 22nd 2009.
Xstrata said that higher production from the Australian operations was partially offset by the closure in July 2008 of the JV Lennard Shelf operation in Western Australia, which it said had become uneconomic due to declining zinc and lead prices and increased energy and labor costs. Lennard Shelf's zinc in concentrate output dropped to 15,385 tonnes in 2008 from 21,045 tonnes in 2007.
Total zinc metal production was 6% lower as a result of the failure of a transformer at San Juan de Nieva smelter and a 6 week labor disruption at the Kidd smelter.
Xstrata said that expansions, higher grades and improved concentrator recoveries at the Australian operations led to an 18% increase in lead in concentrate volumes. Increased volumes of Mount Isa lead refined at Northfleet contributed to an increase of 16% in lead metal production compared with 2007.
(Sourced from www.platts.com)
Japanese steel exports to MEA in 2008 dips by 20.4% - 31 Jan 2009 According to preliminary trade statistics from the Japan’s ministry of finance, the nation customs cleared exports of iron and steel products totaled 38,169,000 tonnes in calendar 2008, up 4.6% from 2007. Their values amounted to JPY 4,572,990 million, topping an all-time high of JPY 4,314.5 billion in calendar 2007.
Among main destinations, Asia accounted for 31,941,000 tonnes, up 5.6% from 2007. In Asia, China took 6,702,000 tonnes, up 6.8%. Newly Industrializing Economies imported 14,404,000 tonnes, down 1.6%; and ASEAN 10,610,000 tonnes, up 19.2%.
In other areas, the USA accounted for 1,524,000 tonnes, down 1.7% from 2007, the EU 571,000 tonnes, up 21.8%; and the Middle East 1,161,000 tonnes, down 20.4%.
Meanwhile, Japan's customs cleared imports of iron and steel products totaled 7,727,000 tonnes in calendar 2008, down 8.3% from a year ago.
(Sourced from TEX Report)
Slowdown signs - Japanese shipping industries cuts full year profit - 31 Jan 2009 Japan’s three largest shipping lines, Nippon Yusen KK, Mitsui OSK Lines Ltd and Kawasaki Kisen Kaisha Ltd slashed full year profit forecasts as slower growth in China cut demand for transportation of iron-ore and coal to the world’s most populous nation.
Nippon Yusen expects net income of JPY 73 billion (USD 816 million) in the year ending March 31st 2009, 48% less than a previous forecast. Kawasaki Kisen cut its forecast 58% to JPY 30 billion and Mitsui O.S.K. expects net income of JPY 130 billion, 33% less than earlier forecast.
Demand for transporting iron ore, coal and other commodities has tumbled, pushing the Baltic dry index to a record low last quarter. Asian container shipments to the US are also declining and Japan’s shipping lines have cut their services.
Mr Yoshihisa Miyamoto an analyst in Tokyo at Okasan Securities Co said that “Next fiscal year’s profit is going to be worse. Even a small drop in the level of bulk commodity transport has a big impact on profits.”
China’s economy expanded at the slowest pace in seven years last quarter amid factory closures. The world’s biggest steelmaker and buyer of iron ore grew at 6.8 percent in the fourth quarter, compared with a 9 percent gain in the previous three months. Also, China’s exports fell the most last month since 1999.
(Sourced from Bloomberg.net)
Directory of Steel Pipe Makers in China - 31 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.
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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
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Iron ore price negotiations - Fitch sees 20% decline in 2009 - 31 Jan 2009 According to the latest Fitch Ratings report, iron ore prices are likely to decline by 15% to 20% in 2009 on falling demand from global steel producers because of production cut.
After 4 years of continuous price hikes, the price of steelmaking raw material declined from the peak of USD 145 per tonne in July2008 to USD 65 per tonne by December 2008 on China’s disinterest on revamping closed steel mills after the Beijing Olympics. Although, China has already started working on these mini steel mills, the action is inadequate to help raise Indian iron ore prices.
This is in contrast with Indian miners’ observation as they were expecting a better price this year after the lull of 2008.
Last year, about 42 mini steel mills in and around Shanghai were forced to suspend production because of a preventive measure for the Olympic Games preparation in September 2008. But, these steel mills delayed resumption because of global economic slowdown that resulted into lower steel demand. These mills are gradually coming into stream which is likely to revive iron ore demand from India.
(Sourced from www.business-standard.com)
Norilsk Nickel announces results for 2008 - 31 Jan 2009 OJSC MMC Norilsk Nickel the world’s largest nickel and palladium producer announces preliminary consolidated production results for the Q4 2008 and full year 2008 at its Polar and Kola Divisions in Russia and international operations in Finland, Australia, Botswana and South Africa.
1. Overall saleable nickel production for 12 months 2008 amounted to 299,700 tonnes comparing to 276,000 tonnes for 12 months 2007.
2. Overall saleable copper production for 12 months 2008 increased to 419,000 tonnes from 415,000 tonnes for the same period in 2007.
3. The Company has produced 2,82,1000 ounces of palladium and 659,000 ounces of platinum for 12 months 2008.
The Polar and Kola Divisions in Russia produced 63,400 tonnes of nickel and 99,400 tonnes of copper in fourth quarter in line with production plan. As expected, full year nickel production totaled 232,300 tonnes, copper 400,400 tonnes.
Palladium production in fourth quarter of 2008 amounted to 641,000 troy ounces and platinum production reached 152,400 troy ounces. Polar and Kola Divisions produced 2,701,500 troy ounces of palladium and 632,300 troy ounces of platinum in 2008. As previously announced, the decrease of PGM production in 2008 was due to the scheduled maintenance & repair works at Nadezhda Metallurgical Plant and deliveries of nickel concentrate to Harjavalta refinery in Finland for test runs. We also note that there was certain decrease of base and precious metals grades in ores mined.
Production of saleable nickel by Tati Nickel and Nkomati in 2008 totaled 23,410 tonnes. The underproduction of Tati Nickel in fourth quarter of 2008 is due to 8 days suspension of operations in December 2008 following the unforeseen furnace breakdown at BCL Smelter in Botswana, where 90% of the concentrate produced at Tati Nickel is processed.
In Western Australia, total production for the Lake Johnston, Waterloo and Black Swan operations for the fourth quarter of 2008 were in line with the production plans. The Lake Johnston and Waterloo operations produced 4,940 tonnes of saleable nickel in the fourth quarter of 2008 and 14,664 tonnes of saleable nickel for the full year 2008. During fourth quarter of 2008 Cawse, Waterloo and Silver Swan operations were put on indefinite care & maintenance as part of a reassessment program for international nickel assets of the Company.
The Harjavalta refinery in Finland produced 13,827 tonnes of nickel in fourth quarter of 2008, including 7,807 tonnes of own saleable nickel and 6,020 tonnes of tolled nickel. Full year production at Harjavalta refinery totaled 51,112 tonnes of nickel, including 29,344 tonnes of own metal.
The stated production volumes do not include the production figures of Stillwater Mining Company.
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