| Price Index - India | | | | 23-Jan | 22-Jan | Change | | ILPPI | 6772 | 6810 | -38 | | IFPPI | 6666 | 6666 | 0 | | INDSPI | 6721 | 6742 | -21 | | What is it? | | Currency | | AUD | 1.5280 | | BRL | 2.3013 | | CAD | 1.2307 | | CNY | 6.8297 | | EUR | 0.7697 | | GBP | 0.7240 | | INR | 49.1850 | | JPY | 88.7295 | | RUB | 32.2958 | | USD | 1.0000 | | ZAR | 10.1858 | | View Current Currency | | Metal Rates Cash Seller & Settlement | | Zn | USD 1113 | | | Ni | USD 11100 | | | Sn | USD 11400 | | | Al | USD 1310 | | | Cu | USD 3154 | | | View Current Metal Rates | | Steel Futures | | NCDEX | 23900 (19-Dec) | INR | 0 |  | | DGCX | 480 (22-Jan) | USD | 0 | | | LME-M | 325 (22-Jan) | USD | 0 | | | LME-F | 300 (22-Jan) | USD | -10 |  | | 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
RINL posts INR 213 crore loss for Q3 of 2008-09 - 25 Jan 2009 Rashtriya Ispat Nigam Limited announced that despite global meltdown and economic crisis it registered a sales turnover of INR 7033 crores from April to December 2008 period up by 4% YoY as compared to INR 6766 crores in April to December 2007.
The release added that “While the Company registered an estimated INR 1211 crores net profit during first half year, the third quarter recorded an estimated net loss of INR 213 crores due to global meltdown resulting in lower realization and higher input costs.”
The release added that “The trend is likely to continue in 4th quarter also.”
Pencil ingot prices see big drop on January 23rd - 25 Jan 2009 It is reported that pencil ingot prices across almost all the major and important locations witnessed a major dip on january23rd 2009
| Location | Change
| | Mumbai | -700
| | Mandi | -363
| | Raipur | -261
| | Kanpur | -959
| | Rudrapur | -610
| | Ahmedabad | -100
| | Ghaziabad | -400
| | Muzzafarnagar | -87
| | |
Change is in INR per tonne
Change is on January 23rd as compared to January 22nd
This indicates that the prices of long products, which have been under sever price pressure, may further come under pressure on the opening of next week on January 27th 2009.
To know more details on steel prices subscribe to services of www.steelprices-india.com by registering or send a mail to admin@steelprices-india.com. Kindly note that this is a paid service
(Sourced from www.steelprices-india.com)
KIOCL plans to establish steel plant in Karnataka - 25 Jan 2009 It is reported that the Kudremukh Iron Ore Company Limited plans to set up INR 10,000 crore steel plant in Karnataka if the state government promises sufficient mine blocks that could sustain it for a minimum of 20 years.
Mr K Ranganath CMD of KIOCL while addressing newspersons said that KIOCL had recently approached the Karnataka government to set up a plant to produce 5 million tonnes per year and value added steel products. It was awaiting sanction of mining blocks.
He said as per Supreme Court directions, the company had stopped all He said with the state government's decision to allow mining in Karnataka only, KIOCL also submitted a proposal to the Karnataka government to set up a steel plant in the state.
He said the company has obtained a mining lease in Chikkanayakanayalli in Tumkur district which has only about 10 million tonnes of iron ore reserves, which may last for four to five years and it is in the process of obtaining necessary clearance to commence mining activities.
Long product prices in Mumbai drop on January 23rd - 25 Jan 2009 It is reported that the prices of long products at Mumbai witnessed a sever drop on January 23rd 2009.
| Product | Grade | Size | Change | %
| | TMT | Fe 415 | 12mm | -1377 | -5%
| | ANGL | GR A | 65x6 | -574 | -2%
| | CHNL | GR A | 75/100 | -574 | -2%
| | JSTI | GR A | 250x125 | -574 | -2%
| | | | | |
Change is in INR per tonne
Change is on January 23rd as compared to January 22nd
The drop in long product prices is attributed to weakening in input material prices.
| Product | Grade | Size | Change | %
| | Pencil ingot | | | -700 | -3%
| | Billet | IS 2830 | 125x125 | -950 | -4%
| | | | | |
To know more details on steel prices subscribe to services of www.steelprices-india.com by registering or send a mail to admin@steelprices-india.com. Kindly note that this is a paid service
(Sourced from www.steelprices-india.com)
SAIL to set up plant in Himachal Kangra district - 25 Jan 2009 IANS quoted Mr Prem Kumar Dhumal CM of Himachal Pradesh as saying that Steel Authority of India Ltd will set up its proposed steel plant in Kangra district.
He said that “SAIL had conveyed to us its board’s decision regarding setting up the plant now at Gangath village in Kangra district.”
As per report, there had been uncertainty over the location of the project for the past 6 months after the state government turned down SAIL’s proposal to set up the plant in Sirmaur district. The state government had cited its inability to provide land and power to SAIL in Sirmaur.
SAIL plans to invest INR 1.06 billion in the hill state. Using thermo mechanical treatment technology, the proposed plant is scheduled to produce 120,000 tonnes of steel rods, wire drawings and corrugated sheets annually and is expected to provide direct employment to more than 200 people.
(Sourced from IANS)
Sinosteel plans for India - 25 Jan 2009 It is reported that Sinosteel now plans to set up 2 huge steel plants in India, as part of a USD 2 billion investment in the country.
Sinosteel's cold forged steel rolls manufacturing unit, the foundation stone for which was laid in April 2008, is coming up in at Haldia in West Bengal and will take another year to commission.
As per report, the steel maker is investing around USD 30 million on the Haldia plant, which is spread over 30 acres and will manufacture 5,000 tonne of cold forged steel rolls for cold rolling mills.
As per media report, Sinosteel is also planning 2 new steel plants, one in West Bengal and the other in Jharkhand.
In West Bengal Sinosteel India has identified land in Kharagpur, where it plans to put up a steel plant in JV with an Indian steel maker and a larger plant in Jharkand, for which it had signed a MoU with the Jharkhand in 2007. It has planned a 2 million tonne integrated steel plant, in Jharkand, which can be scaled up to 5 million tonnes.
The report added that the Jharkhand project is likely to come up in Silli-Chandil area near Ranchi.
Readymade information to help you expand your reach in India - 25 Jan 2009 Last 6 months have spelt doom for almost all walks of life, more so for booming steel and consuming sectors in India. Now every company is taking various measures to remain afloat at these trying times and emerge as winner later
In addition to realigning business processes and improving efficiency to reduce costs, one can try to expand business by reaching out to more clients.
But Indian industry is by and far highly defragmented and thus it is quite difficult and time consuming to reach smaller players. Therefore SteelGuru has made an effort over last 12 months to collect the contact details of various segments and has published several directories.
The directories contain only the following details
1. Name
2. Address
3. Phone No
4. Fax No (Wherever available)
5. E Mai l(Wherever available)
6. URL (Wherever available)
They are delivered in PDF format through e mail
The list of such directories is as under
| Sl | Name | Month | USD | Entries | E mails
| | 1 | Indian Steel Makers | 8-Feb | 1250 | 723 | 446
| | 2 | Stainless Steel Manufacturers in India | 8-Mar | 350 | 55 | 55
| | 3 | Electrical Steel Users in India | 8-May | 800 | 431 | 300
| | 4 | Tin Plate Users in India | 8-May | 625 | 147 | 90
| | 5 | Autopart Manufacturers in India | 8-May | 625 | 431 | 403
| | 6 | Cement Manufacturers in India | 8-Aug | 200 | 186 | 157
| | 7 | Machine Tool Manufacturers in India | 8-Aug | 600 | 389 | 381
| | 8 | Transport Companies in India | 8-Aug | 350 | 176 | 130
| | 9 | Refractory Manufacturers in India | 8-Aug | 350 | 74 | 68
| | 10 | Tube and Pipe makers in India | 8-Aug | 350 | 208 | 129
| | 11 | Overseas Scrap Suppliers to India | 8-Sep | 500 | 1191 | 1074
| | 12 | Indian Marine Industry | 8-Oct | 150 | 49 | 35
| | 13 | Forging Industry in India | 8-Oct | 350 | 121 | 82
| | 14 | Indian Galvanizers | 8-Nov | 350 | 203 | 150
| | 15 | Induction Furnace based steelmakers | 8-Nov | 300 | 399 | 283
| | 16 | Indian Ferroalloy Producers | 8-Nov | 250 | 60 | 60
| | 17 | Alloy steel Manufacturers in India | 8-Dec | 250 | 56 | 50
| | 18 | Wire Drawing Manufacturers in India | 9-Jan | 200 | 70 | 59
| | 19 | Mining Industry in India | 9-Jan | 350 | 162 | 141
| | | | | | |
Pl visit http://www.steelguru.com/reports/list.html or send a mail to reports@steelguru.com for further information
NTPC net profit in Q3 up by 26% YoY - 25 Jan 2009 NTPC Limited has announced the standalone results for the quarter ended on December 31st 2008.
It’s net sales is at INR 11277.06 crore for October to December 2008 quarter as against INR 9330.80 crore for October to December 2007.
The Net Profit / (Loss) was at INR 2250.91 crore for the quarter ending on December 31st 2008 as against INR. 1779.90 crore for the quarter ending on December 31st 2007.
NTPC is benefiting from capacity addition and a higher rate of return on equity allowed by the regulator.
Trailer strike called off at Kochi Port - 25 Jan 2009 BL reported that the 3 day old strike by container trailer workers at Kochi Port has been called off on Friday afternoon following the intervention of the district administration.
The report added that it was decided to provide free parking for trailers for 10 days at the newly set up Container Parking Yard by various trade bodies.
As per report, a formula will also be worked out with regard to the parking fee in the container yard within 10 days, as the trailer owners were of the view that the present parking charges in the yard were on the higher side.
(Sourced from BL)
HCC and Halcrow consortium bags INR 2,726 crore order - 25 Jan 2009 Hindustan Construction Company in consortium with the UK based Halcrow Group has bagged the 330 MW Kishanganga Hydro-Electric project worth INR 2,726.49 crore from the National Hydroelectric Power Corporation.
The scope of work includes investigations, planning, design & engineering, construction of civil & associated infrastructure works, supply, transportation, storage, installation, testing and commissioning of plant and machinery leading to successful operation and performance of all generating units. The project is to be completed and commissioned in 84 months.
The project is awarded on a turnkey basis and HCC, Halcrow Consortium will have a share in the ratio of 98:2 respectively. The project involves the construction of a 37 meters high concrete faced rock fill dam, 23.5 kilometer long tunnel and an underground power house.
Setco to set up plant at Kalol in Gujarat - 25 Jan 2009 It is reported that Setco Automotive and its partner Germany's FTE will invest INR 100 crore to set a Greenfield project at Kalol in Panchmahal district of Gujarat.
It intends to set up a facility to manufacture clutch actuation systems for commercial and passenger vehicles.
Clutch actuation systems are state of the art plastic products and they are not produced in the country at present. Initially, the company will import parts and assemble them here and later on manufacture clutch actuation systems at the Kalol plant. The project is likely to be commissioned by early 2010.
However, Setco proposes to invest around INR 50 crore in a span of 2 years for modernization and expansion of its existing plant at Kalol. It also plans to put up a new unit in a SEZ with an investment of INR 75 crore for its growing global market.
Chinese steel export in 2009 to face strong yuan and trade conflicts - 25 Jan 2009 Just following steel price rebounds of five weeks in a row, steel export in turn loses price advantage, esp. compared with that made in CIS, which enjoys stable and cheap supplies of iron ore, coking coal and other materials.
At the end of last year, domestic HRC price began to recover and has stayed USD 100 per tonne to USD 200 per tonne higher than the international price. In CIS, commercial HRC was quoted at USD 410 per tonne to USD 420 per tonne in December compared with Chinese mainstream price of CNY 3800 per tonne luring not a few traders to import the product. As per Mysteel forecast, HRC import in Jan 2009 would be 300,000 tonnes to 400,000 tonnes never seen before.
With support of the stimulus policies and huge investments, China may become one of the few countries posting a steady steel demand in 2009, which is narrowing the price gap between home and overseas markets or may even pull the domestic in excess of the other.
1. Current HRC price offer in Shanghai market is up to CNY 3800 per tonne with possible export offer to stand at USD 570 per tonne, 30% higher than for CIS. This has seriously deprived of the price advantage and may pull export into stagnancy.
2. Expectancy of stable RMB and depreciation of the countries' currencies will also hurt steel export from China. For instance, Ukraine current has lost 36.6% against USD while CNY gains 6.8% in the period of end 2007 till January 2009, which wrote off advantage of Chinese steel price finally. This also happens in other markets incl. Russia, Mexico, Brazil etc. In South Korea in particular, shrinking demand and depreciating won are expected to hurt Chinese exports badly.
3. Trade conflicts are increasing in the world recessions as every country would like to protect steel industry as the world demand decreases. In the fourth quarter of 2008, China was attacked by US, EU, Canada, India and other economic bodies for exporting welded pipe and fastener. The trade protectionism is predicted to continue in 2009 if no substantial demand revival.
China exported a total of 59.23 million tonnes steel products down by 5.46% YoY accounting for some 10.39% of the total steel product output.
(Source: Economic Reference Newspaper)
GE and Caterpillar oppose Buy American concept - 25 Jan 2009 Bloomberg reported that General Electric Co and Caterpillar Inc are among US exporters that oppose 'Buy American' provisions in the USD 825 billion stimulus legislation, saying it might spark a trade war.
They said that proposals pushed by companies such as US Steel Corporation and Nucor Corporation to limit spending in the stimulus plan to American-made iron and steel risk igniting retaliation from other countries.
Mr Karan Bhatia senior counsel for international law at GE said that "You would be creating an ample basis for countries to close their markets to US products."
GE gets half its sales from outside the US. The fight presents a dilemma for President Mr Barack Obama, who must balance demands from unions and Democrats to protect American jobs against the threat that the Buy American measure would spark protectionist measures by other countries that might deepen a global recession.
It may be noted that US Chamber of Commerce, the Emergency Committee for American Trade in Washington and other business groups warned of that possibility in a letter to congressional leaders such as House Speaker Ms Nancy Pelosi. They said that the measures would undermine American leadership by violating a pledge the US and other governments made at a summit meeting in Washington in November 2008 not to enact new trade barriers for the next year.
(Sourced from www.bloomberg.net)
Vale to invest USD 14 billion to increase output - 25 Jan 2009 Bloomberg reported that Cia Vale do Rio Doce plans to boost capital spending in 2009 by 40% to increase output and shipments of iron ore, coal, nickel and other metals, anticipating a rebound in demand.
Mr Roger Agnelli CEO of Vale said that it is moving forward with plans to invest USD 14 billion in 2009, up from a record USD 10 billion last year, even as the Brazilian and world economies continue to weaken.
He said that Vale, faced with the most serious drop in demand the company has ever confronted, pared iron ore output by more than a fifth in the fourth quarter. The current spending plan is aimed at an expected rebound in demand.
He added that "In a moment of crisis, the company that has the wherewithal and the cash needs to invest. Unless there is an important change in market conditions, our intention is to still invest USD 14 billion."
Mr Agnelli said that Vale has fired 1,300 of its 62,000 workers and put at least 5,500 on temporary paid leave to reduce costs. Still, expansion in 2008 leaves Vale with more employees today than it had a year ago. Vale’s workforce expanded by 5,000 in 2008.
(Sourced from www.bloomber.net)
Q4 slab shipment to Asia offers at USD 350 a tonne FOB - 25 Jan 2009 It is reported that offer prices are estimated at a level of USD 350 per tonne FOB in Brazilian and Australian integrated steelmakers' slab export negotiations under way on shipments to Asia in the January to March 2009 quarter. As a result, the prices on offer this time are viewed as close to half the final level of agreed prices in Brazilian and Australian slab exports to Asia for October to December 2008 shipments.
As of September 2008, Brazilian and Australian prices of slab exports to Asia were reported as a level of USD 1,050 per tonne FOB. They were said to be a level of USD 850 per tonne FOB at first for October to December 2008 shipments, down by USD 200 from a quarter ago. Then, the Brazilian and Australian steelmakers were believed to have renegotiated their supply contracts with a price reduction of USD 100 or USD 200 in the wake of a South Korean customer's request for a review of prices.
Meanwhile, Asian customers look set to reject the slab prices on offer from the Brazilian and Australian steelmakers for January to March 2009 shipments. It is understood that the customers have little leeway for new slab imports because they have imported slabs in stock in large quantities, slabs bought at high prices.
(Sourced from TEX Report Ltd)
Rio Tinto denies selling assets to Shenhua Energy - 25 Jan 2009 Rio Tinto Ltd was lately reported to sell a 76% stake in its Australia based coal unit Coal & Allied Industries Ltd., but the world's iron ore tycoon gave a denial immediately.
In addition, sources said that China Shenhua Energy Co intended to bid far an about USD 3.72 billion stake in Coal & Allied Industries and even more coal mining assets from Rio Tinto, so as to expand its overseas reserves.
Rio Tinto yesterday denied this rumor and Shenhua Energy declined to make any response.
The Chinese company aggregately sold 232.7 million tonnes of coal in 2008, with 11.3% rise year on year, but total export volume slipped 11.7% to 212,000 tonnes. Total commercial coal output hiked 17.5% from a year earlier to 185.7 million tons.
Meanwhile, Shenhua Energy generated 97.8 billion kilowatt-hours of electricity, with a 22.6% growth, and 90.29 billion kilowatt-hours were sold.
(Sourced from Beijingtimes.com)
BDI inching back towards 1000 mark - 25 Jan 2009 It is reported that on January 23rd 2009, Baltic Dry Index reached 980 points up by 35 points as compared to January 22nd 2009.
Capesize
| | BCI | Change
| | INDEX | 2032 | +93
| | SPOT 4 TCE AVG | 17894 | +1223
| | January 1st | 16671 |
| | Year Ago | 79881 |
| | | |
All except INDEX in USD
Panamax
| | BPI | Change
| | INDEX | 531 | +18
| | SPOT 4 TCE AVG | 4234 | +145
| | January 1st | 4089 |
| | Year Ago | 46515 |
| | | |
All except INDEX in USD
Supramax
| | BSI | Change
| | INDEX | 443 | +7
| | SPOT 4 TCE AVG | 4627 | +65
| | January 1st | 4562 |
| | Year Ago | 43173 |
| | | |
All except INDEX in USD
Macroeconomic indicators - Russian industrial output grew 2.1% in 2008 - 25 Jan 2009 RIA Novosti reported that Russian industrial production grew by a mere 2.1% in 2008 against the forecast of 4.7%, and fell 10.3% YoY in December 2008.
The State Statistics Service said that "The industrial production index stood at 2.1% in 2008 as compared to 2007."
In December, Russia's Economic Development Ministry lowered its forecast of the country's industrial output growth in 2008 from 4.7% to 1.9% following a sharp decline in November to December. The decline is expected to continue in 2009.
Mr Andrei Klepach deputy economics minister of Russian said on last Thursday the ministry forecasts the industrial production will fall by 5.7%, for the first time since the Russian economic crisis of 1998.
The service said that in the Q4 of 2008, Russia's industrial output for the first time in recent years fell by 6.1% YoY. In 2007, Russia's industrial growth reached 6.3% with Q4 growth hitting 5.7%. In 2008, Russia's mineral resources production slowed to 0.2% compared with 1.9% in 2007.
(Sourced from RIA Novosti)
Vedanta ready to begin bauxite mining in India - 25 Jan 2009 BL reported that Vedanta Resources Plc is ready to start mining bauxite in eastern India and will show next month that it is complying with court orders so it can begin the project, which is opposed by tribal leaders.
Mr PK Panda VP of mining operations said that "We are ready to start mining early next financial year and we do not anticipate any major trouble."
As per report, Vedanta wants to dig open cast mines to feed an alumina refinery it has built in the area as part of an USD 800 million project. It offers to buy balance 20% in Madras Aluminium
The company is due to hand over a report saying that it has met court imposed guidelines, including paying the forest department fees for using land, reforestation projects and development work for the tribes people. It terminates contract with Maytas Infra in Orissa
Mr Panda said by telephone from Bhubaneswar that "Next month we are going to submit a compliance report to the government, which should pave the way for us to start mining."
(Sourced from Business Line)
Downsizing deals - Corus may axe more jobs in UK - Report - 25 Jan 2009 The Times of UK reported that UK’s largest steelmaker, Corus, is poised to cut up to 3,500 jobs this week in one of the biggest blows yet to the faltering manufacturing sector.
As per report, the planned job cuts will come across the company’s 23,000 strong British workforce and are not expected to lead to the closure of any large sites.
The report cited aid one industry insider as saying that “This is not about site closure. This is about making Corus in the UK competitive.”
Corus’s steelmaking operations are at Port Talbot, Scunthorpe and Teesside with steel processing at sites in South Wales, Scotland and the Midlands.
Vale pellet output in 2008 - 25 Jan 2009 Vale's attributable production of pellets, in which volumes produced by our joint ventures – Hispanobras and Samarco are computed in proportion to our stakes, reached 44.8 million tonne in 2008, approximately the same level as 2007. Vale produced 30.6 million tonne of blast furnace pellets in 2008 while direct reduction pellets output reached 14.2 million tonne.
In order to deal with the global demand reduction and to avoid inventory build-up, during 4Q08 Vale shutdown five of the seven pellet plants located at the port of Tubarão, in the state of Espirito Santo, Brazil. In addition, two other pellet plants, São Luís, at the state of Maranhão, and Fabrica, at the state of Minas Gerais, were shutdown in January 2009. Therefore, only two of the nine pellet plants are currently operating.
By the same token, the start-up of operations of our new pellet plant, Itabiritos, was postponed and our joint venture Samarco is keeping two of its three pellet plants idled since the end of November 2008.
As a consequence of the slower pace of operational activity, our pellet production reached 9.6 million tonne in 4Q of 2008 down 24.9% compared with 3Q of 2008.
| | Q4' 07 | Q4' 08 | Change | 2007 | 2008 | Change
| | PELLETS | 11,662 | 9,572 | -17.9% | 44,825 | 44,762 | -0.1%
| | Tubarão I &II | 1,681 | 1,143 | -32.0% | 6,369 | 6,096 | -4.3%
| | Fabrica | 1,117 | 965 | -13.6% | 4,148 | 4,165 | 0.4%
| | São Luís | 1,852 | 1,790 | -3.3% | 7,053 | 6,960 | -1.3%
| | Nibrasco | 2,347 | 1,918 | -18.3% | 8,966 | 8,775 | -2.1%
| | Kobrasco | 1,283 | 1,125 | -12.3% | 4,971 | 4,935 | -0.7%
| | Hispanobras | 466 | 210 | -55.0% | 2,173 | 1,938 | -10.8%
| | Itabrasco | 1,012 | 384 | -62.0% | 4,015 | 3,321 | -17.3%
| | Samarco | 1,904 | 2,038 | 7.0% | 7,130 | 8,572 | 20.2%
| | | | | | | |
(In ‘000 tonnes)
CSPA to provide its budget recommendations to government - 25 Jan 2009 It is reported that budget 2009 is a key milestone in setting Canada's course to weather this economic storm. Accordingly, the Canadian Steel Producers Association appreciates the opportunity to provide its budget recommendations to the government. As a capital intense, major industrial sector with significant linkages to many important segments of the national economy, the strength of the Canadian economy and the steel industry go hand in hand.
From the automotive cluster and advanced manufacturing to housing, physical infrastructure and all parts of the energy sector, steel is an essential industry that supports growth and economic development across Canada. By way of background, the USD 13 billion plus steel industry in Canada employs some 30,000 Canadians in high wage, highly skilled jobs in all regions of the country.
In this context CSPA makes the following recommendations for principles that must be included in any infrastructure framework:
1. Short-term projects must deliver clear long-term benefits, particularly with respect to facilitating commercial activity, private sector investment, and competitiveness. Needed social infrastructure is also an important investment in the future
2. Targeting improvements in the Canada United States border would benefit many key sectors, including steel and its industrial customers. Every effort should be made, for example, to accelerate a new crossing at Windsor Detroit as soon as possible, and other border sites should be examined on a priority basis to ensure the facilitation of continental trade. The leverage of available short term funding should be used to overcome project roadblocks
3. Funds should be made available for readily available alternative and/or clean energy projects such as wind farms, enhanced oil recovery, and carbon capture and storage. These projects can deliver significant short and long term economic, environmental and technological benefits. Similarly, mass transit investments offer both immediate stimulus and longer-term economic and environmental benefits
4. Project criteria must seek to ensure the maximum use of Canadian materials, equipment and services wherever possible. It would greatly undermine the effectiveness of a stimulus measure if the industrial benefits were to accrue needlessly or unfairly to offshore producers and foreign economies rather than to the benefit of Canada. Canadian supply-chains are world class and capable of rising to the current needs and opportunities. Program and project funding criteria should provide comparable preferences for domestic suppliers as those our major trading partners will undoubtedly include in their economic stimulus packages. In tandem, the government must remain vigilant against allowing unfairly traded imported products to benefit from stimulus funding provided by Canadian taxpayers to the detriment of competitive Canadian suppliers.
Beyond this, CSPA urges the government to devote a sizable component of its stimulus package to measures that will encourage the private sector to hire, retain and or retrain Canadian workers during the economic crisis. Keeping Canadians employed in their current roles is preferable to layoffs followed by the hope of new employment elsewhere.
Chinese HRC export price remains sluggish - 25 Jan 2009 It is reported that Chinese steel export market remain sluggish while there will be more HRC arrivals in the next three months. Many traders seem to be engaged in HRC import business and the total volume in February is expected to be 300,000 tonnes at least from Russia and Ukraine.
Domestic steel prices continue to rebound. On Shanghai market, commercial 4.75mm to 12mm*1500mm HRC goes at CNY 3870 per tonne to CNY 3890 per tonne up by CNY 50 per tonne to CNY 70 per tonne WoW. That for 4.75mm to 12mm*1800mm goes at CNY 3950 per tonne up by CNY 20 per tonne from last Friday. That for 2.75mm HRC keeps unchanged at CNY 4150 per tonne.
Prevailing export quotation for commercial HRC is at USD 560 per tonne to USD 590 per tonne FOB and most offers are between USD 560 per tonne to USD 75 per tonne fob. The increase of export price is mainly contributable to further bounce in domestic market level. There are quite few transactions at moment and export tonnage for January is to see further drop.
(Sourced from www.Mysteel.net)
Visit www.Mysteel.net for real time access to China steel news!
Iron ore negotiation - Talk may restart after spring festival - 25 Jan 2009 According to insiders, China's steelmakers have ended a round of iron ore price talk with global major miners last week in Shanghai, but little progress has been made. It is expected to restart after the Spring Festival.
It is said that Brazil Vale has hinted the acceptance of 10% decrease in term price, but there are still divisions between China's steelmakers and Big Three mining Giants in pricing terms and 2009 price level.
Before a new round of talk, 10% price decrease that Vale has agreed is just rough figure not firm offer and it is still out of line with 40% that China demands.
(Sourced from Finet)
S Korea increases CRC import volumes from Japan - 25 Jan 2009 Hyun Steel is reported to consecutively increase its import proportion from Japan as its total HRC import volume for 2008 accumulated at 2.40 million tonnes, among others, Japanese origin resource went at 1.6774 million tonnes and Chinese origin one stood at 0.72 million tonnes, taking up 69.9% and 30.1% respectively.
By comparison, Dongbu Steel and Union Steel just lift up the proportion from China, especially for Dongbu Steel. Its HRC import volume for 2008 totaled at 1.40 million tonnes, 49.8% of which were from Japan and the other 50.2% were from China. Cases are the same with Union Steel. 44.1% of its imports came from China, however, the proportion jumps to 49.5% this year.
(Sourced from www.Mysteel.net)
Visit www.Mysteel.net for real time access to China steel news!
Kudremukh changes name to KIOCL - 25 Jan 2009 It is reported that Indian iron ore pallet major Kudremukh Iron Ore Company Ltd has changed its name to KIOCL Ltd with effect from January 22nd 2009.
Mr K Ranganath CMD of KIOCL said that "We changed the name to reflect its current activities. We plan to set up a steel plant soon. This will enable us to bargain for mining lease in Karnataka.”
House Committee approves US steel use in stimulus package - 25 Jan 2009 Reuters is reported that US House Appropriations Committee has approved a provision to use US steel as part of the federal economic stimulus package.
Mr Jerry Costello Representative of D Belleville is a member of the Congressional Steel Caucus and has been a vocal supporter of the US steel industry. He had urged House leaders to include domestic steel manufacturers in the legislation.
US Steel Corporation has temporarily shut down operations at its Granite City plant and has left about 1,550 steel workers out of work for the time being. Amstead Rail laid off about 100 workers before the end of last year and has announced further rounds of layoffs next month and March 2009 that will cut 569 jobs from the steel foundry.
(Sourced from www.reuters.com)
Hebei Steel Group sees iron ore import streamlining as essential - 25 Jan 2009 It is reported that Chinese steel revival plan emphasizes on iron ore import market order rectification, sales system institutionalization and production & marketing risk sharing mechanism establishment.
Mr Wang Yifang GM of Hebei Steel Group said that "As a large steel enterprise, it is quite important to follow the plan."
He said that Hebei Steel Group was opened in June 2008 with its asset mainly from Tanggang and Hangang. Total capital is CNY 170 billion and crude steel production is over 33 million tonnes after the combination.
For the moment, the group is taking the regrouping advantage to optimize its management so as to profit amid the gloomy market. The company has built up trading, mining, purchasing and sales companies and regrouped its subsidiaries in light of the steel revival plan. Through efficient resource integration, the mining company will form 30 million tonnes capacity of iron concentrates. As for the trading and purchasing companies, they have unified the trading both at home and abroad. Taking into account the sales company, it has realized the sales prices unification, avoiding vicious competition among enterprises.
Currently, all enterprises related with steel industry should work together to speed up merges and acquisitions. Both suppliers and buyers ought to stick to a principle of negotiating the price independently according to the products' quality.
(Sourced from csteelnews.com)
Cost of natural gas to change in 4 quarters of 2009 - 25 Jan 2009 It is reported that the cost of Russian natural gas for Naftohaz Ukrainy will vary from quarter to quarter. Mr Volodymyr Trykolych deputy CEO of Naftohaz Ukrainy gave the calculations of the national company on the First national TV channel.
| Quarter | Rate | Change
| | Q 1 | 360 |
| | Q 2 | 270 | -25%
| | Q 3 | 219 | -19%
| | Q 4 | 162 | -26%
| | | |
In USD per 1000 cubic meter
Mr Trykolych further said that the imported natural gas price for Ukraine in 2009 will average USD 228 to USD 229 per 1,000 cubic meters taking into consideration that Naftohaz Ukrainy has purchased 11 billion cubic meters of fuel gas at USD 167 per 1,000 cubic meters. According to him, the gas price formula is pegged to the price of fuel oil and gas oil.
As Ukrainian News earlier reported, Mr Yulia Tymoshenko PM of Ukraine has announced that Ukraine will pay USD 228.8 per 1,000 cubic meters for natural gas in 2009.
The Naftohaz Ukrainy national joint stock company and the Gazprom gas monopoly signed contracts on January 19th for supply of natural gas to Ukraine and transit of Russian natural gas through Ukraine in the period of 2009-2019.
The fee for transporting Russian gas on transit through Ukraine is USD 1.7 per 1,000 cubic meters per 100 kilometers of pipeline.
Downsizing deals - Spartan Light Metals to lay off 170 workers - 25 Jan 2009 It is reported that Spartan Light Metal Products production facility in Sparta recently conducted a series of lay offs. The current action has displaced approximately 170 employees at the Sparta facility. The facility is down to two shifts. Some lines have been totally shut down while others are only running during one shift.
Spartan Light Metal is reported to be hardly running any automotive parts down the lines. Many longtime workers were laid off or demoted with some given a temporary lay off status while many are being laid off permanently. And it is whispered, this might not be the end.
Mr Philip Zampogna VP of Human Resources at Spartan Light Metal said that "Although Spartan continues to be optimistic this reduction in force will be temporary, unpredictable orders and limited information concerning longer term customer forecasts make the length of this reduction very difficult to predict in the current market environment."
Mr Rob Link Mayor of Sparta said "This will affect the entire surrounding area. There are many people who work outside Sparta that this will affect, too. It is time for the community to pull together. To make sure people have heat in their house and food on their table. Spartan Light Metals is a stable company. They have invested a lot in the Sparta facility. I feel confident the work force will be put back to work."
The Sparta facility is not the first production facility to be reduced by Spartan. There have been work force reductions in Mexico and Hannibal, Mo as well as three other plants in: Detroit, MI, St. Louis, MO, and Tokyo, Japan. Many reasons point to the decline of the automotive industry in general.
Iron ore negotiation - CISA suggests biannual pricing - 25 Jan 2009 Caijing cited Mr Shan Shanghua general secretary of China Iron & Steel Association as saying that "As supply and demand sides differ widely in opinions on 2009 iron ore market, we propose adjusting the volumes and prices of iron ore contracts every half a year. Both sides can ward off risks in this way."
By convention, FOB price is the benchmark price for iron ore price negotiation. The price agreed by any steelmaker and iron ore miner in the negotiation shall be accepted by other steelmakers and miners and will be valid for one year.
According to Mr Shan, China forecasts the country's steel output in this year will not exceed that in 2008, implying a decrease in iron ore demand. But foreign miners believe China's economy will revive in the second half of this year and demands for steel and iron ore will increase, pushing up steel price.
He said that "If economy recovers, iron ore consumption will increase and adjustment of supply volumes is necessary." He added that volume is always inversely proportional to price and bigger volume should indicate preferential price.
Mr Shan said that the negotiation should start from the level in 2007, which means, Brazilian miner Vale should lower the price by 39% and Australian miners BHP and Rio Tinto should cut prices by 45% compared with their 2008 levels.
He said that "Chinese steelmakers have two bargaining chips in this negotiation." He pointed out that worldwide iron ore supply and demand relationship has changed. Supply swells yet demand shrinks hence China has every reason to chase price cuts. Besides, as Australian Dollar and Brazilian Real depreciate, suppliers will witness fewer profit decreases even if iron ore prices slump since the trade is settled in US dollar.
Mr Shao said that even though Japanese and South Korean steelmakers persist in fiscal year start from April 1st China will still ask for a start from January 1st
(Sourced from caijing.com.cn)
Baosteel to stick to 80 million tonne plan - 25 Jan 2009 Baosteel has been hit hard by the global financial recession still plans to stick to 80 million tonne capacity target.
On the 2009 working conference, Mr Xu Lejiang chairman of Baosteel pointed out that the long term sellers' market dimmed its cognition of the cyclic economy and market, while the financial crisis revealed the incompatible problems in the shift from short supply to oversupply.
Baosteel has decided to build a reverse mechanism to adapt to the market and development strategy. Mr Xu noted that "Those who can better accommodate to the changes will be more competent."
Baosteel Group has said it may take time to recover but will stick to the steel business and the goal of realizing 80 million tonne steel product by 2012.
Mr Wang Jianhua deputy director of Mysteel research center said that two months of price upturns also helped the steelmaker to retrieve some profiting ability. Due to price plunge and high-priced materials inventory, the steelmakers are doomed to make loss in Q4 2008, but hopeful to succeed in winding up the loss in the first quarter this year.”
(Sourced from Oriental Post)
S Korean CR grade HRC import in December dip by 62% YoY - 25 Jan 2009 HRC import volumes of three South Korean CRC producers such as Dongbu Steel, Union Steel and Hyundai Steel are reported to witness a decrease for consecutive 4 month. The weak demand is forecast to sustain.
In details, their import volume for December 2008 totaled at 0.1465 million tonnes, down by 24.5% MoM or 62.2% YoY. Among others, Dongbu Steel posted at 50,000 tonnes, Union Steel and Hyundai Steel imported 9,800 tonnes and 85,900 tonnes respectively. The three producers have completed their stock adjustment, but they confirm their stock of CRC and GI products can meet the demand as it is estimated to be weakening.
Blast furnace companies and iron ore producers are in the price negotiation, which will affect the future HRC price. Therefore, the three producers and Japan's blast furnace company have not achieved an agreement on the Q1 HRC price so far.
(Sourced from Daily Steel)
Chinese domestic coal price picks up last week - MoC - 25 Jan 2009 Shanghai Securities reported that domestic coal price picks up since last December with uptrend continuing, MoC monitored. Coal price during January 12th to January 19th rebounded 0.4% WoW and 3.3% from that in middle December.
According to the statistics, in the north market, coal price increased CNY 20 per tonnes to CNY 40 per tonnes from the review period in last December and up CNY 15 per tonnes to CNY 50 per tonnes in the east China while Qinhuangdao Datong blend coal was rallying 7.2% and Shanxi bend coal was jumping 17.2%.
The statistics showed that thermal coal stock directly for electric power generation dropped from 50 million tonnes in the November end to 430 million tonnes in the December end.
Meanwhile, state stimulus plan to expend demand and protect economic growth also added investment in infrastructure which would lend a support to steel market and coal demand. At the same time, large miners in Shanxi Province have almost cut 30% production which has also diminished the supplement in Henan, Guizhou and the other places.
In analysts' eye, coal price would roll up further in near term but may not stage great ascent amid lasting gloomy economy and weak industrial market.
(Sourced from Shanghai Securities)
American November steel exports drop by 39.9% YoY - 25 Jan 2009 According to the statistics of American Iron & Steel Institute, America steel exports posted at 5.22 million tonnes in November 2008, down by 39.9% YoY from 8.68 million tonnes in November 2007 and down by 25.8% MoM from 7.04 million tonnes in October 2008.
The statistics of AISI show that of all the steel exports in November, only that exported to petroleum and gas industry witnessed an increase of 5.8%, while that exported to cargo shipment service center dropped by 2.2%, to automobile industry dropped by 9.1% and to construction and contractor industry dropped by 7.5%.
It may be noted that the total steel outputs of AISI members account for 75% of steel production in the North America.
Production pruning - Xstrata Merafe ferrochrome 20% of capacity - 25 Jan 2009 Demand for ferrochrome has fallen so low that the Xstrata Merafe chrome venture is producing only 20% of what it is capable of producing but its made a point of retaining its permanent employees who operate its suspended furnaces. The Xstrata Merafe venture has decimated its output, but is holding onto its operations personnel to enable it to snap back into action when the need arises.
Merafe told the Johannesburg Stock Exchange on December 1st 2008 that the Xstrata Merafe chrome venture had suspended 11 ferrochrome furnaces, representing 906 000 tonnes of annual ferrochrome operating capacity. Then on January 16th 2009, Merafe told the JSE that a further 6 furnaces had been suspended due to market conditions. The total suspended ferrochrome production capacity, Merafe said, now represented 1.37 million tonnes or 80% of annual operating capacity.
Mr John Meyer analyst of Fairfax said that the Xstrata Merafe closure indicates the poor state of the ferrochrome market. He expects the London listed International Ferro Metals, which also mines in Rustenburg, and other producers to remain shut through the first half of this year as stainless steel producers work through existing inventory.
He said that Chinese ferrochrome producers are being supported by preferential treatment and support from the provinces and other state entities and believes that substantial tonnages of chrome ore may still exist in China for conversion into ferrochrome. He added that "We believe the Chinese government is effectively subsidizing local ferrochrome production causing South African producers to remain shut down for longer than previously envisaged."
(Sourced from miningweekly.com)
ME steel industry long term outlook remains positive - 25 Jan 2009 MEED reported that the collapse in global commodity prices in the second half of 2008 and a sharp slowdown in the Middle East construction sector has cast a long shadow over the regional steel industry, after 5 years of strong growth.
As of November 2008, projects valued at almost USD 3 trillion were planned or under way in the Gulf. But with the credit crunch taking hold and the oil price collapsing, the big question for the steel industry is how many of these schemes will now proceed and over what timescales.
Given that a swathe of projects, especially in the key market of Dubai, have been put on hold or even cancelled, the outlook for real estate projects, which make up almost two thirds of the total, is mixed over the coming 2 years, while prospects for infrastructure schemes are brighter.
In terms of new contract awards, 2009 is likely to deliver the lowest volume for five years, while there should be a pick up in 2010.
With high stockpiles, particularly in the UAE, and slackening demand, steel prices are expected to remain subdued in 2009 in the range of USD500 a ton. This would be a third of what they were at their peak in mid-2008, but a slight increase on their recent lows recorded in November 2008.
With global steel demand weak and the Middle East a major importer of semi-finished products, the region is likely to become a focus for international steel suppliers with the prospect of dumping returning. If this occurs, governments are likely to re impose custom duties on steel imports in an attempt to protect local manufacturing, although such moves will do little to bolster prices.
The global downturn and the lack of available project finance have put the brakes on several regional expansion projects particularly in the downstream sector. Upstream, both Bahrain based holding company Foulath and Brazil's Vale which are planning major investments across the region; maintain that their projects will proceed, despite the difficult trading conditions. If implemented, the projects will take regional palletizing capacity up to 68 million tonnes per year by 2013.
The slowdown is also expected to have a major impact on Iran's much publicized plans to quadruple steel production over the next 5 years, which were already in trouble due to a lack of finance and bureaucracy prior to the onset of the credit crunch. Major government backed players in the regional steel industry appear well insulated from the effects of the global slowdown.
However, smaller, private sector firms, especially in the downstream arena, look vulnerable to a prolonged downturn, raising the possibility that there may be some much-needed consolidation in the industry. Qatar Steel and the Saudi Iron & Steel Company both pulled out of the planned direct reduction palletizing project in Mauritania in 2008 citing disagreements with the project's initiator as well as concerns about ultimate profitability.
With global iron ore prices expected to fall by 30 to 50% in the negotiating round to be completed in April 2009, both regional companies are likely to delay their entrance into the upstream sector until the cost of entry declines further.
The longer term outlook for the Middle East steel market is more promising, given an expected rebound in the oil price in 2010 fuelling economic growth and capital investment. As a result, steel demand is set to rise over the next 5 years. By 2013, regional finished product demand is forecast to grow to 85.5 million tonnes with raw steel production projected at over 50 million tonnes.
A growing issue for the regional steel industry going forward will be the availability of competitively priced gas feedstock. With competition for limited supplies intensifying from the regional oil and utilities sectors, new gas allocations are likely to cost much more than in the past, when steel producers could count on a gas price below USD1 a million BTU.
(Sourced from www.meed.com)
Aquila in new battle with Vale AMCI - 25 Jan 2009 It is reported that coal miner and iron ore explorer Aquila Resources Ltd has become embroiled in another legal stoush with its Australian Premium Iron joint venture partner regarding the choice of export port for the Western Australian project.
Aquila lost its previous legal showdown with US-based coal giant AMCI in September 2007 when the Supreme Court of Queensland determined that a restructuring of AMCI's interests in the iron ore project and the Belvedere Coal JV was not a breach of JV terms.
The Perth-based company on Friday launched a fresh legal proceeding against AMCI, saying it had not been able to get the nod from its partner to progress the definitive feasibility study for the iron ore project on the basis of the project manager's recommended preferred port option.
Aquila favors Anketell port next to Rio Tinto Ltd's massive Cape Lambert port in Western Australia.
It said that "Aquila will seek to have this matter heard by the Supreme Court of Western Australia as soon as possible, and in the meantime intends to continue discussions with AMCI in an effort to resolve the matters in dispute.”
AMCI was acquired by Brazilian mining giant Vale in February 2007.
(Sourced from AAP)
|
