| 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 | 1.5722 | | BRL | 2.3014 | | CAD | 1.2291 | | CNY | 6.8297 | | EUR | 0.7802 | | GBP | 0.6876 | | INR | 48.7295 | | JPY | 89.8825 | | RUB | 35.4129 | | USD | 1.0000 | | ZAR | 10.1744 | | 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 :
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(Far East) | | | | Others
Foundation laying for SAIL unit at Kangra on February 21st - 01 Feb 2009 It is reported that the foundation stone for INR 110 crore steel processing unit to be set up by steel authority of India in Kandrori area of Kangra district of the Himachal Pradesh will be laid on February 21st 2009.
Professor Prem Kumar Dhumal chief minister of Himachal Pradesh, after meeting with Mr Ram Villas Paswan union steel minister announced the date for laying foundation stone.
Professor Dhumal told that state government will transfer 7.20 hectare land in the area for the project on 99 years lease immediately and would provide all the tax and other incentive to this unit, which are applicable to private sector units in the state.
He told that the unit site will be connected by all weather national state highways for 60 tonne capacity and added that 11 KV line will be set up for providing 4500 KW power requirement for the steel unit. He told that the state government will provide daily 800 kilo liter water daily through main water lines of the IPH departments.
He told that the total project will be implemented unit wise and added that TMT bar mill will be installed in the first unit .he told that TMT bar mill with 20 tonne per hour furnace capacity and production capacity of 1,00,000 per annum will start production in 18 months period.
Punjab excludes steel traders from VAT credit norm - 01 Feb 2009 PTI reported that the steel industry of Punjab has threatened to launch a State-wide agitation in protest against a notification of the State Excise and Taxation Department which disallows the steel trading community from claiming input tax credit under the Punjab Value Added Tax Act 2005.
The report added that “Terming the new notification illegal and against the spirit of VAT, the industry has also moved the Punjab and Haryana High Court against it.
Mr Amrit Lal Jain president of Punjab Beopar Mandal said that “We will launch our agitation across the State in protest against this new direction meant for steel industry as it will hit the steel traders hard because they will not be able to claim the tax credit on their sales.”
Mr KK Garg president of North India Induction Furnace Association said that “We will be holding a meeting of our members along with other associations on Saturday to chalk out our new course of action against this decision.”
The industry has also expressed apprehension that the prices of steel might go up because of the new notification. The report cited an expert as saying that “When a steel trader will not be able to get tax credit then it will lead to hike in the steel prices by at least 4%.”
The Punjab Excise and Taxation Department has issued a notification applicable from January 28, which mentions that only manufacturer or importer of steel items could claim input tax credit against the sales. It means that steel traders would not be able to avail tax credit on their sales made to other persons.
(Sourced from PTI)
Maruti Suzuki Q3 net down by 54.27% - 01 Feb 2009 Maruti Suzuki India has announced that its financial results for the period ending December 2008. It reported a phenomenal drop in standalone net profit for the quarter ended December 2008, due to high raw material costs and lower sales volume. It also failed to meet analysts expectation
During the quarter, the profit of the company declined 54.27% to INR 2,135.70 million from INR 4,670.40 million in the same quarter previous year. The analysts polled by Bloomberg had estimated earnings of INR 2,770.50 million for the quarter ended December 2008.
However, net sales declined marginally 1.03% to INR 46,258 million, below analyst’s expectation of INR 46,378 million, while total income for the quarter fell marginally 0.85% to INR 48,035.00 million, when compared with the prior year period. It earnings of INR 7.39 a share during the quarter, registering 54.30% decline over previous year period.
| As at | Dec'08 | Dec'07 | Change
| | Net Sales | 46,258.10 | 46,741.30 | -1.03
| | Net Profit | 2,135.70 | 4,670.40 | -54.27
| | Basic EPS | 7.39 | 16.17 | -54.3
| | | | |
(In INR million)
During the quarter, the operating margin of the company fell by 670.43 basis points to 6.42% compared with the previous year period. Interest cost decreased 68.59% to INR 45.10 million while depreciation cost increased 2.05 times to INR 1,774.90 million over previous year period.
In April to December 2008, Maruti Suzuki registered total income from operations of INR 144,196.2 million, a growth of 7.35% over same period of previous fiscal. During the period, net profit after tax stood at INR 9,755.4 million, down by 31.93% over April to December 2007.
The reduction in net profit has been mainly due to lower volumes, a rise in material costs and adverse impact of currency changes in the fiscal. In addition, a higher provision for depreciation, owing to more stringent depreciation norms adopted by the company in March 2008 brought down net profit.
(Sourced from myiris.com)
Fuel price cut to lower inflation to 2% - Citi - 01 Feb 2009 Indian Express quoted global financial firm Citi as saying that cut in prices of petrol, diesel and cooking gas will ease the price situation and pull down inflation to 2% by March end.
Citi in its global market report said that "Given that petrol, diesel and LPG together have a weight of 4.75% in the whole price index, the fuel price hike would have a 40 basic points impact on inflation. This will result in headline inflation falling to 2% by March end."
Moreover, it added that "The negative patch in WPI that was expected in June to September quarter could occur earlier."
Citi had earlier projected that inflation would come down to 3% by March end, the same as was indicated by the Reserve Bank of India in its third quarterly review of the monetary policy.
The India government recently slashed petrol prices by INR 5 a liter, diesel by INR 2 per liter and cooking gas by INR 25 per cylinder. The reduction, effective from last midnight, will help further ease inflationary pressures.
(Sourced from Indian Express)
Monnet Ispat Q3 sales up 39% - 01 Feb 2009 Monnet Ispat and Energy Ltd has recorded a net sales of around INR 400 crore for the third quarter of the current financial year up by 39% as compared with INR 288 crore in the same quarter last year.
Its net profit stood at INR 33.50 crore. For the April to December 2008 period, the company posted a net profit of INR 165.83 crore. The company has also decided to set up a service division to undertake exploration, mining and washing of coal.
IIL Q3 sales down by 48.13% YoY - 01 Feb 2009 Ispat Industries Ltd has announced the unaudited financial results for the quarter ended December 31st 2008. The Company has posted a net loss of INR 6517.10 million for the quarter ended December 31st 2008 as compared to net loss of INR 360.00 million for the quarter ended December 31st 2007.
| | Dec '08 | Dec '07 | Change
| | Net Sales | 11,235.50 | 21,662.30 | -48.13
| | Net Profit | -6,517.10 | -360 | -
| | | | |
(In INR million)
Its total income has decreased from INR 21805.60 million for the quarter ended December 31st 2007 to INR 11235.50 million for the quarter ended December 31st 2008.
Suzlon Energy slips to loss in Q3 - 01 Feb 2009 Reuters reported that Suzlon Energy Ltd slipped to a loss in the December quarter hurt by FOREX losses and charges on quality issues and said it saw growth coming in only from 2010.
The company's consolidated net loss, including subsidiaries Hansen Transmission and REpower stood at INR 589.7 million as compared with a profit of INR 1.52 billion a year ago. It total income increased to INR 68.93 billion from INR 31.7 billion.
Mr Tulsi Tanti chairman of Suzlon Energy Ltd in a statement said that "The long term fundamental of the wind industry remains strong. We see an upswing in the industry's growth from 2010. We expect the new US administration to provide a strong boost for renewables.
It said in a separate statement to the stock exchange that the company's order book, excluding Hansen and REpower, stands at INR 103.9 billion as on date.
(Sourced from Reuters)
UGSL board approves demerger of power business - 01 Feb 2009 Uttam Galva Steels Limited announced that the board of directors of the company at their meeting held on January 31st 2009 has approved the Scheme of Arrangement demerger of power division of the company.
As per report the company will demerge the power business from the company into separate entity subject to approval of the stock exchanges, the company’s shareholders and creditors / lenders.
Suzlon puts expansion plan on back burner - 01 Feb 2009 BS reported that Suzlon Energy has put on hold its capacity expansion plans in India in the wake of the global financial crisis and dwindling orders from its main markets the US and Europe.
Mr Sumant Sinha COO of Suzlon said that "We have put on hold the expansion plans. If required, we can augment capacity further by smaller investments in buildings and ancillary equipment, since the basic platform is ready."
Mr Sinha said that the activated capacity has increased to 4,200 MW so far with the completion of an integrated manufacturing facility in Karnataka's Mangalore. This 1,500 MW capacity is adequate to meet the current and immediate future demand.
As per report, the capacity expansion was planned 2 years ago, with a deadline for completion before March 2009. 3 months ago, Suzlon dropped its plans to set up a tower manufacturing facility at Kandla near Gujarat to save INR 669 crore and to reduce its CAPEX burden for the year to about INR 930 crore.
The report added that Suzlon was planning investments in 4 export oriented special economic zones at Kandla in Gujarat to manufacture tower equipment, a forging facility at Baroda, a wind turbine and rotor blade manufacturing unit at Mangalore and a plant in Coimbatore to make control systems and generators.
(Sourced from Business Standard)
Otis introduces EMS Panorama system in India - 01 Feb 2009 Otis Elevator Company a unit of United Technologies Corp launched its EMS Panorama™ system in India. This Web based system allows building management to securely monitor, control, report on and manage a full range of operational-critical elevator functions.
Mr Sundar Parthasarathy MD of Otis Elevator Company (India) Limited said that "In today's environment, property managers are faced with the challenge of delivering outstanding customer service while ensuring the property is secure. The EMS Panorama system provides an ideal solution by delivering the tools needed to customize elevator operation to meet traffic demands, secure floor access and review equipment performance," said
Available for new installations and as a modernization option, the EMS Panorama system delivers comprehensive monitoring capabilities to enable building management staff to review the real-time status of their elevators, escalators and moving walkways in graphical displays. The system also allows users to generate extensive reports on all monitored operations to assess equipment performance.
Features of the EMS Panorama system
1. Flexible, intuitive Web-based interface
2. Real time graphical displays and historical data for equipment operation
3. Control of equipment and floor settings to enhance security and traffic flow
4. More than 30 customizable reports for assessing equipment performance
The system also allows building management to control equipment operation. Users can schedule operation modes to meet traffic needs for a certain time of the day and enter hall and car calls for elevators. To increase building security, the system provides the capabilities to secure access to specific floors as needed.
Steel Rise 2009 at Bhuwneshwar from February 2 - 01 Feb 2009 The two day event, organized by New Wave Display Services Pvt Ltd in association with Team Orissa, Indo-German Chamber of Commerce, Utkal Chamber of Commerce and Industry and Society of Geoscientists and Allied Technologists, would seek to provide a comprehensive understanding of opportunities opened up by steel capacity expansion for all sectors.
Mr AK Deb organizer said the last three four months have been extremely difficult for the global steel industry but the downtrend would pass soon and that the event would focus on what policy makers, government and industry must do.
With more than 50 participants including steel majors as SAIL, TATA, Arcelor Mittal, Jindal, mining industries, chemical, engineering and allied industries and local SMEs, the event would provide a platform for sharing high quality information and networking along with showcasing of products.
Mr Deb said that the uniqueness of ‘Steel Rise’ this year would be participation of technical and professional institutes of repute like IIMC,IIT, Kanpur and IIT Kharagpur, NIT Rourkela, Durgapur and Suratkl. This would enable them impart information on their course and specialisations while knowing the needs of the industriesin return.
(Sourced from Express News Service)
Indian demand to drive economy - Mr Nath - 01 Feb 2009 The Financial Express quoted Mr Kamal Nath Commerce and Industry minister as saying that India's domestic demand will help sustain economic growth in the midst of the global downturn, which has not hit the country as much as it has impacted other economies.
Mr Nath in an interview to BBC said that "India's growth story is based on domestic demand. It is not based on the export market entirely we can continue to keep our domestic demand driven growth." India's exports worth around USD 200 billion contribute about 20% to its domestic production.
He said that "We cannot insulate or isolate ourselves from it but we can continue to keep our domestic demand."
He said that the Central government has announced USD 4 billion for infrastructure projects, which would take off in the next couple of months. Mr Nath said that "That is creating domestic demand and that is what is going to sustain through. We are not going to get hit as bad as other countries."
(Sourced from FE)
Bank rate should have been changed - ASSOCHAM - 01 Feb 2009 Welcoming extension of bank’s refinancing facilities to mutual funds, non finance banking and housing companies by relaxing maintenance of SLR up to 1.5%, ASSOCHAM was expecting that the premier bank would have also brought down cash reserve ratio, repo rate and reverse repo rate by at least 100 basis points which did not happen.
Mr Sajjan Jindal president of ASSOCHAM said that the need of hour is that Indian Inc needed money at relaxed interest rates which could have been possible provided RBI had not maintained status quo in its cash reserve ratio, reverse repo rate and repo rate.
Mr Jindal said that the demand creation and liquidity availability is still an issue but will remain so until interest rates are further moderated, he welcoming that the RBI extended bank’s re-finance facilities to provide liquidity to mutual funds, non finance banking and housing finance companies by relaxing maintenance of SLR up to 1.5%.
Mr Jindal, however, added that the ASSOCHAM concurs with RBI’s assessment that India’s GDP would not exceed 7% in current fiscal in view of slowdown and also agreed with the premier bank that the inflation will fall to 3% by March 2009 since prices of essential commodities, crude oil and metals have started coming down heavily.
NTPC Ennore power project facing delays - 01 Feb 2009 Project Monitor reported that the balance of plant works at NTPC's 1,000 MW Ennore thermal power plant in Tamil Nadu is facing delay.
At a recent meeting to review power projects, the Central Electricity Authority said that the cooling tower, ash and coal handling plants, low pressure piping and fire protection system were getting delayed which could hold up the commissioning of the project. Unit-I of the power plant is scheduled to be commissioned by February 2011 followed by unit-II in July 2011. CEA asserted that the project required extra effort if it is to be commissioned as per schedule.
An NTPC official said that boiler erection for the two units was in advanced stage and efforts were being made to accelerate the BoP works at the site. He added that the boiler erection for unit-I had already begun and for unit-II, the process would begin this month end. Boiler drum lifting for unit-I is scheduled for March.
As per report, the Vallur project is being executed by NTPC-Tamil Nadu Energy Company Ltd, an SPV floated by NTPC Ltd and Tamil Nadu Electricity Board for development of the power plant. The JV holds around 1,000 acres for the project.
(Sourced from Project Monitor)
AIIS sees massive dip in US steel imports in coming months - 01 Feb 2009 American Institute for International Steel, in its latest market survey, said that when prices on the US steel market rose slightly near the end of 2008, it looked as if the steel market had hit bottom. The price of scrap, which had declined sharply along with other commodities earlier in 2008, was finally starting to rise again, and some mills raised their prices so they could reap the benefits. But by early January, most of that optimism evaporated, giving way to weariness about the pace of recovery.
In June 2008, prices for hot rolled steel hit about USD 1,000 per tonne, but they have dropped to the mid USD 500 level, even though mills are producing at only 50% of capacity. The main reason is weak demand for steel in two major industrial sectors namely autos and housing. Only about 20% of the steel used in the United States is imported, including some types of steel that must be imported from Japan and the European Union, such as high strength dual phase steel and TRIP steel.
Mr Robert Palaima president of Delaware River Stevedores Inc said that for steel importers, low prices and weak demand add up to one of the coldest, bleakest winters in memory. Along the Delaware River, a key entry point for steel, import volumes are generally speaking way down.
Mr Bill Gaskin president of Precision Metalforming Association said that "Demand stinks. There is no optimism. This is a stagnant market."
Mr Dave Phelps president of American Institute for International Steel said that demand for non North American Free Trade Agreement material dried up in October 2008 and remains that way. He added that he expects a big drop in steel arrivals this month and in February, based on the lower volume of orders placed last September and October.
Mr Phelps said that AIIS has long promoted the elimination of 'Buy National' preferences, but he added that "Buy American preferences for highway, bridge and mass transit have long been in place and are not inconsistent with US international obligations under the World Trade Organization’s Government Procurement Agreement. The purpose of that agreement is to open up as much government procurement activity as possible to international competition."
(Sourced from American Institute for International Steel)
FMG sees bottoming out for iron ore market - 01 Feb 2009 According to Fortescue Metals Group Limited iron ore market may have bottomed as demand from Chinese steelmakers recovers, driving prices for the raw material higher.
Mr Graeme Rowley ED of FMG said that “We are starting to see some evidence that the bottom of the depressed state has been reached. We are seeing a comeback in the prices.”
Mr Rowley said that “We have order books full all the way through to March.”
Fortescue received an average price of AUD 96.63 tonne for ore in the December quarter, up 9% from the September quarter.
Fortescue joins Australia’s Atlas Iron Limited and Taiwan’s China Steel Corporation in forecasting a rebound. Atlas said that last month the market may have reached bottom as China’s stimulus package spurred a recovery in real demand. While China Steel said that it expected an improvement from the Q2.
(Sourced from Bloomberg)
Ukrainian HR mills attempting price hike - 01 Feb 2009 There was a lull in Black Sea steel export market during last week in general. Despite of market fluctuations seen last week, prices are close to previous levels.
Quite strange situation is on the HRC market, as last week some the Ukrainian producers tried to lift prices by around USD 40 per tonne that pushed spot market quotations a little bit.
The Ukrainian mills are heard to be loaded with orders but most of them are coming to the market on short term basis.
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)
Macroeconomic indicators - Chinese Q3 GDP growth slowest in 7 years - 01 Feb 2009 Bloomberg reported that China’s economy expanded at the slowest pace in seven years as the global recession dragged down exports, increasing pressure for more government spending and lower interest rates to buoy growth.
Gross domestic product grew 6.8% in the fourth quarter from a year earlier, after a 9% gain in the previous three months, the statistics bureau said in Beijing.
Industrial output grew 5.7% in December from a year earlier, today’s data showed, close to the weakest pace in almost a decade. Inflation cooled to 1.2%, the slowest in two years, giving more room for interest-rate cuts. Producer prices fell 1.1%. Urban fixed-asset investment rose 26.1% year compared with a 26.8% increase in the first 11 months.
China’s economy grew 9% for all of 2008 after a 13% expansion in 2007.
Mr Ma Jiantang, head of the statistics bureau said “The international financial crisis is deepening and spreading with a continuing negative impact on the domestic economy.”
Mr Huang Yiping chief Asia economist at Citigroup Inc in Hong Kong said China’s leaders will do anything” to maintain an economic expansion of about 8% the government’s target for creating jobs.
Plummeting Chinese demand for parts and materials for exports is reverberating across Asia and the Pacific, driving Taiwan, South Korea and Australia closer to recessions and worsening Japan’s slump. Premier Mr Wen Jiabao said this week that the government must work urgently this quarter to reverse the slowdown and maintain social stability amid a “very grim” outlook for jobs.
Daiwa Institute of Research, JPMorgan Chase & Co. and Citigroup Inc. reduced today their estimates for China’s growth in 2009. Daiwa cut to 6.3% from 7.5%; JPMorgan to 7.2% from 7.8% and Citigroup to 7.6% from 8.2%.
(Sourced from Bloomberg)
Italian plate import market non existent - 01 Feb 2009 It is reported that plate import market in Italy is basically not existent at present.
As per market information, most business is done by Italian domestic re rollers who sell at approximately EUR 470 per tonne delivered to customers with payment term at 60 days.
Thus import business is only possible if import price is substantially lower than domestic one.
Just to illustrate how slow the plate market in Italy, a market report said that one of the domestic plate reroller had about 100.000mt HRP on stock in December end, which is almost equivalent to their usual full year turnover of plates.
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)
Arch Coal profit in Q4 falls by 23% YoY - 01 Feb 2009 Reuters reported that Arch Coal Inc fourth quarter profit slumped 23.5% as falling coal prices prompted the idling of some mine operations and it lowered production targets for 2009.
It sold 34.2 million tonnes of coal in the fourth quarter, slightly down from the third, while the average sales price per tonne declined by 62 cents. Net income dropped to USD 62.3 million, or 44 cents per share, from USD 81.4 million, or 56 cents per share, in the same quarter of 2007. Revenue rose to USD 729.9 million from USD 644.4 million.
Arch said that coal markets weakened during the second half of 2008 as milder weather, high stockpile levels at power plants, slowing economic activity and declining prices for competing fuels hurt coal prices.
Mr Steven Leer chairman & CEO of Arch said in a statement that "We are approaching 2009 with a cautious view of the current global and domestic economic challenges. We are taking specific actions to address such challenges."
Mr Leer later suggested that, with a strong balance sheet, now was a good time for Arch to make acquisitions as smaller coal producers struggle to survive in the economic downturn. He noted that "Given the decline in pricing of assets we have seen, we are actively looking and see opportunities out there. A lot of companies are stressed in the credit markets or with permitting and historically it's in the distressed market that we have acquired our best assets."
Mr Leer also said that Arch was looking to expand its exports to Asia in the next few years from Pacific ports, even though he saw US exports industry wide declining in 2009 while the recession stunts steel manufacture and electricity generation, the two main uses for coal.
As per report Arch Coal also reduced its capital spending budget and said it expects a weaker coal market in 2009, although it remains bullish on the longer term outlook for the industry. Given the weakness in US coal markets, Arch forecast sales volumes of 120 million to 127 million tonnes for 2009, down from 137.8 million tonnes sold in 2008.
(Sourced from Reuters)
Mr Geithner sees China manipulating yuan - 01 Feb 2009 The Washington Post reported that Mr Timothy F Geithner likely Treasury secretary of US has signaled a more confrontational approach toward China, stating that the new administration thinks Beijing is manipulating its currency and it will act aggressively using all the diplomatic avenues to change China's currency practices.
Mr Geithner pointed to new data from Beijing showing that growth slowed sharply in 2008 and said a further slowdown in China could delay recovery from the global downturn. He said that "The immediate goal should be for us to convince China to adopt a more aggressive stimulus package as we do our part to try to pass a stimulus package here at home.”
His statement echoed Mr Obama's campaign vows to take a harder line on China's trade policies, although he said the immediate emphasis should be on shoring up the faltering US and Chinese economies.
China's control of the value of its currency, the yuan, has been a friction point for years, with some economists saying Beijing has kept its currency artificially low to keep the prices of its goods cheap and generate trade surpluses. That has led to a global capital imbalance, as American consumers borrowed and spent and China became the United States' largest foreign creditor.
(Sourced from The Washington Post)
Analysis of HEA market scenario in MEA - 01 Feb 2009 Due to the global meltdown, within a span of 6 months, The product index for HEA, for MEA, PI-HR has reduced to 5,414 thus reflecting about 46% reduction in HR prices in MEA on average.
| Date | PI-HEA
| | 1-Jul | 10000
| | 20-Jul | 9879
| | 28-Jul | 9759
| | 12-Aug | 9640
| | 17-Aug | 9517
| | 11-Sep | 9759
| | 2-Oct | 9516
| | 2-Nov | 7590
| | 23-Nov | 7284
| | 26-Nov | 7038
| | 27-Nov | 6793
| | 28-Dec | 6609
| | 11-Jan | 6427
| | |
The product index for HEA, for MEA, PI-HR is based on transaction prices and market size in UAE, Saudi Arabia, Kuwait, Qatar and Bahrain with base as on June 30th 2008 at 10,000.
The actual price movement of HEA in various countries is detailed below
| Country | Currency | 1-Jul | 27-Jan | Change
| | UAE | AED | 5500 | 3400 | -38%
| | Saudi Arabia | SAR | 5500 | 3600 | -35%
| | Bahrain | BHD | 550 | 375 | -32%
| | Qatar | QAR | 390 | 276 | -29%
| | Kuwait | KWD | 5395 | 3540 | -34%
| | | | | |
Rate is per tonne
(Source – www.steelprices-middleeast.com)
But, as there are very few suppliers, it is expected that the prices of HEA in MEA will remain stable in the short term.
To keep tab on steel prices subscribe to services of www.steelprices-middleeast.com by registering or sending a mail to admin@steelprices-middleeast.com. Please note that this is a paid service.
(Sourced from www.steelprices-middleeast.com)
Production pruning - Nippon Steel measures to cope with low demand - 01 Feb 2009 Nippon Steel Corporation has responded to the sharp and substantial decrease in demand for steel products by reducing overall steel output volume to the bare minimum by lowering to an unprecedented level and extending furnace downtimes and other measures.
In response to the current demand conditions, NSC plans to further implement the following measures:
1. Move up the scheduled blow off to renovate number 1 blast furnace at the Oita Works by one month to begin February 1st 2009 instead of March 7th 2009
2. Carry out the banking of the number 2 blast furnace at the Kimitsu Works as soon as preparations have been completed with a target date of February or early March 2009
In addition, NSC has vastly reduced the operating rates of its coke ovens to correlate with the reduced percentage of steel production by blast furnaces and will conduct hot banking of certain coke ovens at the Kimitsu, Nagoya, Yawata, and Oita Works.
NSC plans to continue swiftly and effectively regulating its production operations to respond to changes in steel demand trends in Japan and overseas.
Nava Bharat Ventures arm to acquire coal mine in Indonesia - 01 Feb 2009 Nava Bharat Ventures Ltd has announced that its Subsidiary, Nava Bharat Pte Ltd has concluded definitive agreements with a Coal Mine Owner in Indonesia.
NBS is entitled to hold 75% stake in the coal concession which has mineable reserve of 10 million tonne of high grade coal.
Mr Chavez dares Ternium on Sidor takeover - 01 Feb 2009 Associated Press reported that Mr Hugo Chavez president of Venezuela dared the former owners of a steel maker he nationalized last year to sue his government for payment.
Mr Chavez said that "Let them take us to court. If they do, worse for them.”
Mr Chavez, without mentioning Ternium's name, claimed that the former private management of Sidor was seeking USD 4 billion in exchange for its stake.
Venezuelan authorities have been locked in negotiations over a payment plan with Ternium since Sidor was taken over last year amid a wave of nationalizations by Chavez's government.
Ternium SA, a subsidiary of the Argentine Italian conglomerate Techint, owned a 60% stake in Venezuelan steelmaker Sidor.
(Sourced from AP)
Outokumpu inks trademark license agreement with Valbruna - 01 Feb 2009 It is reported that Outokumpu and Italian Acciaierie Valbruna SpA have signed a non exclusive patent and trademark license agreement, which grants Valbruna the right to use Outokumpu's LDX 2101 duplex stainless steel grade in all long products, such as bar, rebar and wire products in the European Union, Norway and Switzerland.
Lean Duplex grade LDX 2101, a low nickel, high strength stainless steel developed and patented by Outokumpu was commercially introduced in 2002 and has met with great success in demanding applications. To further facilitate the market penetration of Lean Duplex, Outokumpu has awarded manufacturing licenses to stainless steel producers in Europe and Asia.
Mr Tommy Grahn senior VP and head of Outokumpu Long Products business unit said that "Demand for duplex grades grows faster than that of standard stainless grades. We are pleased to have Acciaierie Valbruna as an important partner in Europe to promote the duplex market and support customers in the utilization of this unique material."
Mr Massimo Amenduni Gresele MD of Acciaierie Valbruna said that "Thanks to a long term relationship between Outokumpu and us, there is now from Valbruna an alternative to the austenitic 304 grade, especially in terms of the price stability due to the low nickel content. We foresee a bright future for it, especially in projects, which require a long completion time. Furthermore, Valbruna can supply the widest range of long products, which are able to fulfill all possible needs of the market thanks to its production of rebar, wire rod, wire, billets, ingots, round, hexagonal, flat, square and angle bars."
Riversdale expects Mozambique coal bankable study in March - 01 Feb 2009 Mining Weekly reported that Riversdale Mining latest coal resource update had supported the development of the Benga open cut coal project, and that a bankable feasibility study for the Mozambique based project would be completed in March 2009.
In its quarterly activities report, Riversdale stated that the total coal JORC compliant resource at Benga was estimated at 2.1 billion tonnes, of which 1.023 billion tonnes was measured and indicated resources, while a further 1.08 billion tonnes was inferred resource. Of this, 1.76 billion tonnes was less than 500 meter deep, and likely to be amendable to open cut mining.
It added that Riversdale’s main focus on the tenement would remain on gathering data for the bankable feasibility study.
The statement further said that “The Benga exploration effort is to now shift from resource assessment to mine development drilling, specifically orientated to providing detailed data for mine design, scheduling and ultimately, for the production of JORC proven and probable recoverable mine reserves.”
Drilling at the Benga tenement would provide improved technical, structural, and coal quality definition in preparation for mining. Detailed loxline drilling is planned for early 2009. To this end, a reverse circulation drilling rig is being sourced to assist with the shallow coal interval sampling program. The laboratory analysis for the coal handling preparation plant design was complete, and the wash ability analysis was bout 90% complete.
The Benga license is held in a JV with steel producer TATA Steel, and covered an area of 4 560 hectare. In September 2008, Riversdale formed an international advisory board to oversee the development of the project.
Riversdale stated that it planned to ship its first coal during the fourth quarter of 2010, and was investigating the refurbishment progress to the Sena railway line, which would most likely be used to ship the coal to market.
Riversdale would also continue with discussions with the government of Mozambique on the grant of a mining concession and access to infrastructure, while exploration activities were likely to be extended to the nearby tenements in the Tete region.
In its quarterly activities report, Riversdale reported that the run of mine production at the Zululand Anthracite Colliery, in KwaZulu Natal, was reported at 167 117 tonne for the quarter ending December 2008. This was down an estimated 98 294 tonne compared with the September quarter, and 47 367 tonne less than the corresponding period in 2007. Saleable production for the December 2008 quarter was 182 191 tonnes, an increase of 14 427 tonne compared with the September 2008 quarter, and an increase of 5 543 tonne on the same quarter last year.
(Sourced from www.miningweekly.cm)
Canada concerned over Buy American clause - 01 Feb 2009 Mr Stephen Harper Prime Minister of Canada said that a protectionist bill that could hurt US imports of Canadian steel goes against the spirit of free trade and the United States shouldn't forget its international obligations to liberalize global commerce.
Mr Harper said that "I spoke to our ambassador about it and I know that countries around the world are expressing grave concern about some of these measures that go against not just the obligations of the United States, but frankly the spirit of our G20 discussions. We will be having these discussions with our friends in the United States and we expect the United States to respect its international obligations."
Mr Mike Gilmor president of Canadian Institute of Steel Construction said that he has grave concerns about the measure. He added that "There is no question about it that some of our members and even non members export work to the US and it's a substantial part of their business."
He said that "We have been effectively shut out of the bridge market since 1987 by that act, and this provision would expand it to gas and oil pipelines, to airports, to schools and a broad range of structures that our members participate in building."
Mr Ken Neumann, Canadian national director of the United Steelworkers union, said that precedent could dictate that Canada is exempt from the Buy America provision under NAFTA. He said that when the US launched trade actions against overseas steel companies in 2002, Canadian and Mexican imports were excluded because of their special trade relationship with the US. Mr Neumann said that "What this provision is truly designed to do is protect the North American market from dumped steel that comes from low wage economies and economies where there's no environmental regulation."
It may be noted that two of Canada's biggest steelmakers, the former Dofasco and Ipsco, have long had major mills in the United States and operate in a continental marketplace, meaning a boost to the US steel market could end up being a boon to Canadian mills.
(Sourced from www.tmcnet.com)
MAN JV opens truck assembly plant in Jeddah - 01 Feb 2009 Khaleej Times reported that German commercial vehicle manufacturer MAN, together with its Saudi Arabian importer Haji Husein Alireza, has opened a truck assembly plant in Jeddah.
A joint project between MAN Commercial Vehicles and Haji Husein Alireza, it will initially assemble MAN TGA-WW trucks and semi-trailer tractors, for the local market. It is designed to produce 3,000 vehicles a year in single shift operation.
Mr Anton Weinmann chairman of the executive board of the MAN Commercial Vehicles Group told Khaleej Times that “The strong growth in Saudi Arabia and in the Middle East is of the greatest importance for MAN. Our partnership with Haji Husein Alireza and the new plant are important pillars of MAN Commercial Vehicle’s international growth strategy.”
(Sourced from khaleejtimes.com)
Downsizing deals - Evraz Rocky Mountain cutting pipe workers - 01 Feb 2009 The Pueblo Chieftain reported that between 40 and 55 workers at Evraz Rocky Mountain Steel Mill will be laid off because of a slowdown in demand for steel pipe.
Mr Rob Simon the mill's manager said that the workers have been notified and the first of several stages of lay offs will begin at the end of next week.
He said that “The mill is laying off one of three shifts that work in the seamless tube mill. 40 workers will be let go and another 10 to 15 will be laid off, making a total of 50 to 55 workers affected. The remaining two shifts will work four-day weeks.”
Mr Simon said the declining number of drilling rigs for oil and gas has caused a drop in purchases of seamless steel pipe. It's not known when or if the workers will be brought back because of uncertainty about the economy.
Mr Simon said orders for rod and bar products currently are enough to keep those workers on the job. He said that "We hope not to have to," furlough the workers again. The demand is keeping up at those level, but it changes all the time. He added that even with the recent bad news, "We consider ourselves very fortunate."
He said that in November, Evraz was forced to furlough as many as 85 workers at the rod and bar mill. The workers were off 10 days in November, a week in December and a week in January.
(Sourced from The Pueblo Chieftain)
Russia and China unveil measures for depressed nickel market - 01 Feb 2009 It is reported that Russian government has decided the policy to revoke the duty of 5% imposed on nickel export owing to the internationally shrunk demand for nickel, a scale of nickel trade has inclined to be depressed and in order to cope with this aspect. Also, Chinese government has implemented from January 2009 to relieve the regulations for conversion trade on consignment to export nickel metal and cobalt from China.
In order to comply with the request from such nickel producers as Norilsk Nickel, Russian government have decided to revoke the duty on nickel export and this revocation will be put in practice after its legal procedure was finished. In addition to Norilsk Nickel, such other Russian nickel producer as Ufaleynickel has suspended to produce nickel from October of 2008. Also, Norilsk Nickel, which is the largest producer of nickel in the world, said that the depressed nickel market caused to decrease the turnover for 2008 to USD 8,000 million, having fallen to half of that for 2007. Norilsk Nickel has the capacity to produce 300,000 tonnes per annum of nickel and is one of major nickel exporters in the world. For a reference, Russian government has also decided the policy to reduce the duty on copper export by 10%.
Meanwhile, one of leading traders in overseas countries said that this countermeasure to relieve the regulations for conversion trade on consignment to export nickel metal and cobalt from China has a large probability to benefit more cobalt than nickel. This view is due to the fact that China still needs to import nickel but has to export cobalt.
The volumes of conversion trade on consignment to export nickel from China had once enlarged, because no duty was imposed on nickel metal to be exported from China under conversion trade on consignment. However, as regards export of nickel metal produced in China from nickel ore imported into China as raw material, Chinese Government has imposed from August 2005 the duty of 15% on export of nickel metal and, consequently, the business to export nickel metal from China suddenly and considerably decreased from 2006. It is possible to export nickel metal from China by means of paying the duty of 15% and, as a matter of fact, China exported nickel metal on a scale of 6,000 tons in 2008 but the exports shrunk to a large extent, because the duty of 15% has come to be a barrier to export nickel metal from China.
China has still required to import nickel metal and actually imported 110,000 tons of this metal in 2008. Therefore, there is a strong opinion in the market that, even if the circumstances for nickel export in Chin are revised, the business to export nickel metal from China will be not possible to expand.
(Sourced from TEX Report Limited)
Monnet to offer coal washing, mining and exploration services - 01 Feb 2009 Monnet Ispat & Energy Ltd has announced that its foray into the coal washing, mining and drilling services business with the creation of three new divisions to take up the assignments.
Mr Sandeep Jajodia MD of Monnet Ispat & Energy Ltd said that under the new business, which would work on the EPC model, it would offer its services for detailed exploration, mining and coal washing to public and private sector entities.
Currently, Coal India and its subsidiaries have the monopoly in performing such tasks. MIEL claims to be the maiden private Indian company to take up the job.
The power and steel major said that it would create three new divisions exploration, mining and washing for launching the services from the next financial year, starting April 2009.
While, the exploration division will primarily do detailed mines survey, drilling and compilation of mineral data, the mining division will undertake mining assignments, especially of underground mines. The washing division will offer services for setting up washeries to wash coal.
Mr Jojodia said when asked that about the size of investment to be made in the business as also revenue being eyed from it, the details would be ready by February end.
However, MIEL has already started recruiting people for the job. In all, it will rope in about 70 mining engineers, geologists and surveyors to accomplish the tasks it undertakes from power, steel and cement sectors, among others. It has foreign collaborations with J Coal of Japan and Daniel of US for reducing the ash content of coal by washing it through advanced technology.
US steelmakers get boost in House plan - 01 Feb 2009 It is reported that the USD 819 billion stimulus package that House lawmakers approved has a key provision for US steelmakers, requiring that all the steel used in the federally subsidized road and construction projects be made in the United States.
The House Appropriations Committee added the "Buy American" amendment to the stimulus package last week on a near unanimous vote. The measure came from Representative Mr Pete Visclosky, but it had the blessing of the Congressional Steel Caucus, including Representative Mr John Salazar, who also is a new member of the appropriations panel.
Mr Salazar said that "This bill is designed to put Americans back to work. We should not be buying steel from overseas if it can be made by those working hard in Pueblo and around the country."
While Evraz Rocky Mountain Steel Mills in Pueblo is Russian owned, it fits under the House amendment, which says all the iron and steel used in the infrastructure projects must be produced in the US. That would be a boost to US producers because the domestic industry currently is operating at less than 50% of capacity.
President Mr Barack Obama's advisers said this week the "Buy American" strategy would help generate jobs in the US economy. Not everyone likes the idea, though. At the head of that list is the US Chamber of Commerce. Chamber officials insist the steel amendment will trigger retaliation against US exports to other nations.
Chamber of Commerce said that "We certainly are not against companies and governments 'Buying American', but we are against the government arbitrarily mandating such a requirement because it would harm our economy in numerous ways."
(Sourced from www.chieftain.com)
Vale update on sale of stake in Usiminas - 01 Feb 2009 Companhia Vale do Rio Doce announced that there was no decision of its Board of Directors about the sale of its 14,869,368 common shares issued by Usinas Siderúrgicas de Minas Gerais S/A
Buy American clause in stimulus bill stirs debate - 01 Feb 2009 It is reported that as the US government gets ready to spend billions to build bridges and roads, some lawmakers and foundry owners want to make sure the components are American made. That means, if they have their way, all the steel and iron would be made domestically.
Global companies based in the United States such as General Electric and Honda and business groups including the US Chamber of Commerce warn that foreign nations could retaliate, when the United States can least afford a trade war.
Mr Peter O'Toole spokesman for General Electric said that "We think that this kind of language could bring about reciprocal restrictions on US exports." He added that just over half the company's USD 183 billion in 2008 revenue came from exports. That includes jet engines built near Cincinnati and locomotives made in GE's Erie plant, sold to China, Russia and South Africa.
Mr Edward B Cohen VP of Honda said that "International and free trade have been very good for Ohio and this kind of protectionism inevitably leads to retaliation, which is not good for anybody."
Mr Alan McCoy VP of government relations for AK Steel insisted that his industry could compete anywhere on a level field basis. While AK does not make products used in roads or bridges, its steel is used in trucks and appliances, which could get a sales boost from new money in the economy.
He added that "On safety, quality, productivity, cost, we can meet or beat anyone in the world. Now can you purchase steel cheaper from foreign sources? Sure. And if you do not care that it is cheaper because of massive government subsidies, low wages, no benefits, lack of safety standards, nonexistent environmental regulations and currency manipulation, then I guess you can buy that steel and sleep at night while thousands of United States steelworkers collect unemployment checks."
Meanwhile, business groups including the Chamber of Commerce, Aerospace Industries Association and others said that they share the goal of employing more Americans and boosting domestic production.
(Sourced from blog.cleveland.com)
Downsizing deals - Severstal Warren is set to lay off more - 01 Feb 2009 Vindy.com reported that layoffs are growing at a Warren steel mill that shut down its steel making operations in October.
Mr Mike Rounsley, benefits representative for United Steelworkers of America Local 1375 said some departments at Severstal Warren that had been processing steel finished their work Friday, which means workers there are no longer needed. He didn’t know the number of workers being laid off, and Mr Ed Machingo local president was not available to comment.
Mr Rounsley said in recent weeks, Severstal had been shipping steel slabs to the Warren mill for processing. The slabs had been produced at a Severstal mill still making steel. He said that while the rolling of slabs in Warren has ended, some finishing and galvanizing work remains. Maintenance workers also remain on the job.
Workers were told in December that about 600 of the mill’s 1,050 hourly workers would be laid off at some point. They also were told the steel making operations, which closed for repairs in the fall, would not be restarted until sometime in 2009, perhaps as late as June 1st.
Mr Mel Baggett Severstal vice president of human resources said he didn’t want to give weekly updates on layoff numbers. He would say only that a significant number of people had already been laid off and that the company would continue to align its production to demand. He emphasized, however, that Severstal intends to restart steel production at the mill, which used to be known as WCI Steel.
Severstal has been making steel at a reduced level at a mill in Michigan but has shut down steel production at mills in Maryland and West Virginia, as well as Warren.
(Sourced from Vindy.com)
Storm halts loading at Abbot terminal - 01 Feb 2009 Bloomberg reported that the Abbot Point coal port has stopped loading vessels after its only loader was blown off its tracks during a storm.
Mr Graham Rawlings, GM commercial at the port, said that the loader is going to be out action for a few days. We have commenced an investigation into the incident.
The port located 25 kilometers north of the town of Bowen in central Queensland, ships coal from mines including Newlands and Collinsville and has a capacity of 21 million tonnes.
(Sourced from Bloomberg)
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