| Price Index - India | | | | 07-Jan | 06-Jan | Change | | ILPPI | 7137 | 7098 | +39 | | IFPPI | 6818 | 6798 | +20 | | INDSPI | 6985 | 6955 | +30 | | What is it? | | Currency | | AUD | 1.3884 | | BRL | 2.2043 | | CAD | 1.1851 | | CNY | 6.8232 | | EUR | 0.7365 | | GBP | 0.6672 | | INR | 49.1776 | | JPY | 93.3063 | | RUB | 29.0503 | | USD | 1.0000 | | ZAR | 9.3942 | | View Current Currency | | Metal Rates Cash Seller & Settlement | | Zn | USD 1288 | | | Ni | USD 12510 | | | Sn | USD 11920 | | | Al | USD 1574 | | | Cu | USD 3390 | | | View Current Metal Rates | | Steel Futures | | NCDEX | 23900 (19-Dec) | INR | 0 |  | | DGCX | 480 (06-Jan) | USD | 0 | | | LME-M | 370 (06-Jan) | USD | -5 |  | | LME-F | 440 (06-Jan) | USD | +110 |  | | NCDEX :
NCDEX Mild Steel Ingot Future Closing Price DGCX :
Dubai Steel Rebar Futures Closing Prices LME-M :
LME Steel Billet Future Buyer Prices (Mediterranean) LME-F :
LME Steel Billet Future Buyer Prices
(Far East) | | | | Others
Indian steel price indices show improvement - 08 Jan 2009 The domestic Indian Steel remained showed improvement. The Indian Long Product Price Index (ILPPI) improved by 39 points and Indian Flat Product Price Index (IFPPI) rose by 21 points .The overall Indian Steel Price Index (INDSPI) declined by 31 points: The market continued its sea-saw movement without any major change which dispelled any definite trend .
| Class | 6-Jan | 7-Jan | Change
| | ILPPI | 7098 | 7137 | 39
| | IFPPI | 6798 | 6818 | 21
| | INDSPI | 6955 | 6985 | 31
| | | | |
ILPPI – Long Product Price Index
IFPPI – Flat Product Price Index
INDSPI – Indian Steel Price Index
| Category | 6-Jan | 7-Jan | Change
| | PI - TMT | 6927 | 6973 | 46
| | PI - WRC | 7463 | 7510 | 47
| | PI - Angle | 6772 | 6772 | 0
| | PI - Channel | 6870 | 6890 | 20
| | PI - Joist | 6549 | 6569 | 20
| | | | |
| Category | 6-Jan | 7-Jan | Change
| | PI - Narrow Plates | 6440 | 6465 | 24
| | PI - Wide Plates | 7035 | 7063 | 28
| | PI - Hot Rolled | 6585 | 6631 | 46
| | PI - Cold Rolled | 7379 | 7322 | -57
| | PI - Galvanized | 7038 | 7052 | 14
| | | | |
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BOC India wins 15 year gas supply contract with SAIL RSP - 08 Jan 2009 BOC India Limited, a member of The Linde Group, has signed a 15 year long term contract with Steel Authority of India Limited’s Rourkela Steel Plant for supply of gases to meet the requirements of the planned expansion of their steel works.
It proposes to invest nearly INR 500 Crores in a new state of the art air separation plant and ancillary equipment which will not only meet the requirements of RSP but also meet the growing merchant demand for liquid products in eastern India.
RSP is undergoing an expansion of its facilities and will increase its steel production capacity to 3.2 million tonne per annum by adding a new blast furnace and converter. The expansion project also requires setting up Air Separation Units to meet the incremental requirement of oxygen, nitrogen and argon.
RSP had invited bids from major gas companies to install the ASUs on Build Own Operate basis. BOC India were able to win the contract under competitive bidding with a unique solution to meet RSP’s demand and serve the growing merchant market in the region.
The contract envisages supply by BOC India to RSP of 2600 tonnes per day of gases. BOCI will meet this requirement through the setting up of two Air Separation Units. Besides meeting RSP’s requirement, BOC will produce additionally nearly 400tpd of liquid products including oxygen, nitrogen and argon to serve BOC’s markets in Orissa and neighboring states of Chattisgarh, Madhya Pradesh, Andhra Pradesh and West Bengal.
Mr SN Singh MD of RSP said that "The supply of gases is critical to the operation of the iron and steel making furnaces and the award of the oxygen plant contract is an important milestone for our expansion project. We look forward to a lasting relationship with BOC."
Mr SK Menon MD of BOC India said that "We were able to offer the most attractive product and service offer to RSP by fully realising synergies between RSP’s demand and our growing merchant liquid business. This contract is a milestone by virtue of being the largest and most competitive BOO gas supply contract awarded by SAIL so far."
Slowdown signs - India cargo traffic growth slows to 3.34% - 08 Jan 2009 ET reported that cargo traffic at all major ports grew at a slower pace of 3.34% in the first 9 months of the current as compared to 12.5% growth in same period last fiscal.
According to a monthly report by the Indian Port Association, the cargo traffic handled at the major ports for the nine months stood at 391.80 million tonne as against 378.82 million tonne handled during the same period last year. The slowdown in cargo traffic was largely due to fall in exports of commodities such as rice, soya bean seeds, apparel, spices, castor seeds in the period under review. Cargo traffic in this category down by 7% to 58.58 million tonne as against 62.80 million tonne in April to December 2007.
Mr K Raghuramaiah chairman of Paradip Port Trust said that "Unlike in past, where decline in growth was mainly due to fall in iron ore exports, this time deceleration in growth is due to fall in export of agri commodities. In any case, it is a result of economic slowdown across the globe which is adversely affecting trade."
India's exports have dipped for two months in a row.
While in October, it fell by 12% in November it dipped by 9.9%.
As per report, cargo traffic in these commodities witnessed a decline half of the 12 major ports in the country. While Kolkata saw a decline about 22%, Visakhapatnam about 16% and Paradip about 14%. Cargo in this categor was down at Mumbai by 12.5%, Chennai at 12% and Cochin about 6.5%.
However, the 12 major ports improved their collective throughput by 3.42%.
(Sourced from Economic Times)
Indian long product prices improve in Eastern India - 08 Jan 2009 The prices of longs improved in Kolkata whereas it remained stable in other regions. The bottom line is that market seems to have stabilized as result of slew of fiscal initiatives by the government in the New Year.
Kolkata | Item | Grade | Size | Change | %
| | TMT | Fe 415 | 12mm | 1324 | 3.9%
| | WRC | SWR14 | 5.5/6 | 0 | 0.0%
| | CHNL | GR A | 75/100 | 552 | 1.6%
| | JSTI | GR A | 250x125 | 552 | 1.5%
| | | | | |
Change is on January 7th as compared to January 6th 2009
Change is in INR per tonne
Delhi| Item | Grade | Size | Change | %
| | TMT | Fe 415 | 12mm | 0 | 0.0%
| | WRC | SWR14 | 5.5/6 | 1163 | 3.7%
| | CHNL | GR A | 75/100 | 0 | 0.0%
| | JSTI | GR A | 250x125 | 0 | 0.0%
| | | | | |
Change is on January 7th as compared to January 6th 2009
Change is in INR per tonne
Chennai| Item | Grade | Size | Change | %
| | TMT | Fe 415 | 12mm | 0 | 0.0%
| | WRC | SWR14 | 5.5/6 | 0 | 0.0%
| | CHNL | GR A | 75/100 | 0 | 0.0%
| | JSTI | GR A | 250x125 | 0 | 0.0%
| | | | | |
Change is on January 7th as compared to January 6th 2009
Change is in INR per tonne
Mumbai| Item | Grade | Size | Change | %
| | TMT | Fe 415 | 12mm | 0 | 0.0%
| | ANGL | GR A | 65x6 | 0 | 0.0%
| | CHNL | GR A | 75/100 | 0 | 0.0%
| | JSTI | GR A | 250x125 | 0 | 0.0%
| | | | | |
Change is on January 7th as compared to January 6th 2009
Change is in INR per tonne
Ahmedabad| Item | Grade | Size | Change | %
| | TMT | Fe 415 | 12mm | -688 | -2.1%
| | ANGL | GR A | 65x6 | 0 | 0.0%
| | JSTI | GR A | 250x125 | 0 | 0.0%
| | CHNL | GR A | 75/100 | 0 | 0.0%
| | | | | |
Change is on January 7th as compared to January 6th 2009
Change is in INR per tonne
Indore| Item | Grade | Size | Change | %
| | TMT | Fe 415 | 12mm | 300 | 0.9%
| | ANGL | GR A | 65x6 | 0 | 0.0%
| | JSTI | GR A | 250x125 | 0 | 0.0%
| | CHNL | GR A | 75/100 | 0 | 0.0%
| | | | | |
Change is on January 7th as compared to January 6th 2009
Change is in INR per tonne
Kanpur| Item | Grade | Size | Change | %
| | TMT | Fe 415 | 12mm | 0 | 0.0%
| | ANGL | GR A | 65x6 | 0 | 0.0%
| | JSTI | GR A | 250x125 | 0 | 0.0%
| | WRC | SWR14 | 5.5/6 | 0 | 0.0%
| | | | | |
Change is on January 7th as compared to January 6th 2009
Change is in INR per tonne
Raipur| Item | Grade | Size | Change | %
| | ANGL | GR A | 65x6 | 0 | 0.0%
| | JSTI | GR A | 250x125 | 0 | 0.0%
| | WRC | SWR14 | 5.5/6 | 0 | 0.0%
| | CHNL | GR A | 75/100 | 0 | 0.0%
| | | | | |
Change is on January 7th as compared to January 6th 2009
Change is in INR per tonne
Mandi| Item | Grade | Size | Change | %
| | ANGL | GR A | 65x6 | 0 | 0.0%
| | CHNL | GR A | 75/100 | 104 | 0.3%
| | JSTI | GR A | 250x125 | 208 | 0.6%
| | | | | |
Change is on January 7th as compared to January 6th 2009
Change is in INR per tonne
Bangalore| Category | Grade | Size | Change | %
| | ANGL | GR A | 65x6 | 0 | 0.0%
| | JSTI | GR A | 250x125 | 0 | 0.0%
| | CHNL | GR A | 75/100 | 0 | 0.0%
| | | | | |
Change is on January 7th as compared to January 6th 2009
Change is in INR per tonne
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Indian flat products prices improve in North - 08 Jan 2009 Delhi showed definite positive movements catalyzed by release of pent up demand in the absence of any negative price movements in the last one week. The positive sentiment is likely to spread in other regions of the country.
Even though there is import pressure due to below par price levels from Black Sea but the ominous clouds will not have any impact on the domestic market due to placement of HRC in the restricted list.
Mumbai: | Category | Grade | Size | Change | %
| | Narrow Plates | GRA | 8x1.25 | 0 | 0.0%
| | Wide Plates | GRB | 12-20x2.5 | 0 | 0.0%
| | Hot Rolled | Tube | 2.5x1250 | 0 | 0.0%
| | Cold Rolled | DSK | 0.63x1000 | 0 | 0.0%
| | Galvanized | 100Gms | 0.4 | 0 | 0.0%
| | | | | |
Change is in INR per tonne
Change is on January 7th as compared to January 6th 2009
Chennai| Category | Grade | Size | Change | %
| | Narrow Plates | GRA | 8x1.25 | 0 | 0.0%
| | Wide Plates | GRB | 12-20x2.5 | 0 | 0.0%
| | | | | |
Change is on January 7th as compared to January 6th 2009
Change is in INR per tonne
Delhi| Category | Grade | Size | Change | %
| | Narrow Plates | GRA | 8x1.25 | 1004 | 3.7%
| | Wide Plates | GRB | 12-20x2.5 | 1134 | 3.7%
| | Hot Rolled | Tube | 2.5x1250 | 1021 | 3.7%
| | Cold Rolled | DSK | 0.63x1000 | -1957 | -6.0%
| | Galvanized | 100Gms | 0.4 | 390 | 1.1%
| | | | | |
Change is on January 7th as compared to January 6th 2009
Change is in INR per tonne
Bangalore| Category | Grade | Size | Change | %
| | Narrow Plates | GRA | 8x1.25 | 0 | 0.0%
| | Wide Plates | GRB | 12-20x2.5 | 0 | 0.0%
| | Hot Rolled | Tube | 2x1000 | 0 | 0.0%
| | Cold Rolled | DSK | 0.63x1000 | 0 | 0.0%
| | Galvanized | 100Gms | 0.40 | 0 | 0.0%
| | | | | |
Change is on January 7th as compared to January 6th 2009
Change is in INR per tonne
Kolkata| Category | Grade | Size | Change | %
| | Narrow Plates | GRA | 8x1.25 | 0 | 0.0%
| | Wide Plates | GRB | 12-20x2.5 | 0 | 0.0%
| | Hot Rolled | Tube | 2.5x1250 | 0 | 0.0%
| | Cold Rolled | DSK | 0.63x1000 | 0 | 0.0%
| | Galvanized | 100Gms | 0.4 | 0 | 0.0%
| | | | | |
Change is on January 7th as compared to January 6th 2009
Change is in INR per tonne
Indore| Category | Grade | Size | Change | %
| | Narrow Plates | GRA | 5-10x1.25 | 0 | 0.0%
| | Wide Plates | GRB | 12-20x2.5 | 0 | 0.0%
| | Hot Rolled | Tube | 2x1250 | 0 | 0.0%
| | Cold Rolled | DSK | 0.8 | 0 | 0.0%
| | Galvanized | 100Gms | 0.63 | 0 | 0.0%
| | | | | |
Change is on January 7th as compared to January 6th 2009
Change is in INR per tonne
Ludhiana| Category | Grade | Size | Change | %
| | Patra | | | 181 | 0.6%
| | HRC | Tube | 2.5x1250 | 0 | 0.0%
| | | | | |
Change is on January 7th as compared to January 6th 2009
Change is in INR per tonne
Ahmedabad| Category | Grade | Size | Change | %
| | Narrow Plates | GRA | 8x1.25 | 0 | 0.0%
| | Wide Plates | GRB | 12-20x2.5 | 0 | 0.0%
| | Hot Rolled | Tube | 2.5x1250 | 0 | 0.0%
| | Cold Rolled | DSK | 0.63x1000 | 0 | 0.0%
| | | | | |
Change is on January 7th as compared to January 6th 2009
Change is in INR per tonne
Kanpur| Category | Grade | Size | Change | %
| | Narrow Plates | GRA | 8x1.25 | 0 | 0.0%
| | Wide Plates | GRB | 12-20x2.5 | 0 | 0.0%
| | Hot Rolled | Cold Roll | 2x1000 | 0 | 0.0%
| | Cold Rolled | DSK | 0.63x1000 | 0 | 0.0%
| | Galvanized | 100Gms | 0.40 | 0 | 0.0%
| | | | | |
Change is on January 7th as compared to January 6th 2009
Change is in INR per tonne
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Land sale for Essar Steel Minnesota moves forward - 08 Jan 2009 It is reported that a land sale for the Essar Steel Minnesota project moved forward on Tuesday.
The Itasca County Board gave preliminary approval to the 3700+ acre tax forfeited land sale that will bring in almost USD 2 million. The move will also mean that land will once again be on the county tax roles.
Essar needs the land for its massive mining through steelmaking plant near Nashwauk. Work continues to move forward, despite a slowing world economy. Commissioners will make a final vote by April.
(Sourced from www.wdio.com)
Input prices improvement drifts East ward - 08 Jan 2009 Scrap, Ingot and Sponge Iron prices showed quantum improvement in Kolkata.
Melting scrap
80:20
HMS | Location | Change | %
| | Kolkata | 1540 | 8.4%
| | Mandi | -91 | -0.4%
| | Mumbai | 0 | 0.0%
| | | |
Change is on January 7th as compared to January 6th 2009
Change is in INR per tonne
Sponge iron| Location | Change | %
| | Kolkata | 1087 | 7.7%
| | Raipur | 0 | 0.0%
| | | |
Change is on January 7th as compared to January 6th 2009
Change is in INR per tonne
Burbil| Product | Grade | Size | Change | %
| | Iron ore - BF | Fe 65% | 10-40 | 0 | 0.0%
| | IOS-Primary | Fe 63% | 5-18 | 0 | 0.0%
| | IOS – Secondary | BF | | 0 | 0.0%
| | Iron ore - Fines | Fe 63% | Fines | 0 | 0.0%
| | | | | |
Change is on January 7th as compared to January 6th 2009
Change is in INR per tonne
Bellary| Product | Grade | Size | Change | %
| | Iron Ore Calibrate | Fe 65% | 10-40 | 0 | 0.0%
| | Iron Ore Calibrate | Fe 64% | 10-40 | 0 | 0.0%
| | Iron Ore Calibrate | Fe 62% | 10-40 | 0 | 0.0%
| | Iron Ore Calibrate | Fe 60% | 5-20 | 0 | 0.0%
| | Iron Ore Calibrate | Fe 62% | 5-20 | 0 | 0.0%
| | Iron ore - Fines | Fe 63% | Fines | 0 | 0.0%
| | | | | |
Change is on January 7th as compared to January 6th 2009
Change is in INR per tonne
Pencil ingot| Location | Change | %
| | Mumbai | 100 | 0.4%
| | Mandi | -91 | -0.4%
| | Raipur | 0 | 0.0%
| | Kanpur | 0 | 0.0%
| | Kolkata | 1359 | 5.9%
| | Ghaziabad | 0 | 0.0%
| | Muzzafarnagar | -261 | -1.1%
| | Ahmedabad | 221 | 0.8%
| | | |
Change is on January 7th as compared to January 6th 2009
Change is in INR per tonne
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MSP Steel & Power receives approval for iron ore mine - 08 Jan 2009 MSP Steel & Power Ltd has announced that the Ministry of Mines, Government of India, vide its letter dated December 22nd 2008 has granted approval for prospecting license to the Company for Iron Ore over an area of 150.00 hectare in Durgkondal Forest Range of Kanker, district of Chattisgarh.
The release said that “However, this license moves the Company one step forward in having its captive iron ore mines for its manufacturing operations. With its own Coal Block and Iron Ore Mines, it will be cost competitive with other steel manufacturer and its bottom line will improve in long run.”
L&T bags major orders in Buildings & Factories Segment - 08 Jan 2009 It is reported that L&T’s Buildings & Factories Operating Company, part of its Construction Division, has bagged add on orders aggregating around INR 11,000 million in the Q3 of 2008-09 from its ongoing developmental projects like mixed use developments at Chandigarh, Darley Road Tower in Sri Lanka, Airport Hotel at Bangalore and add on works at its airport projects.
However, these orders further enhance the order book of the Company which had already secured major design & build orders in the airports, IT Parks and commercial space. L&T has a significant market share in these segments.
As per report, L&T is USD 7 billion technology driven engineering and construction organization and one of the largest companies in India’s private sector. It has further interests in manufacturing, services and Information Technology. A strong, customer focused approach and the constant quest for top class quality have enabled the Company to attain and sustain leadership in its major lines of business across 7 decades.
As a technology driven engineering conglomerate, L&T’s capabilities cover large process plants, construction, electrical distribution, electronics and information technology. L&T is in a position to offer its customers a single window for meeting a variety of industrial requirements. It has a successful track record in building plant and equipment used in the oil & gas sector, refineries, infrastructure and power projects and has technology relationships with world leaders that have enabled it to execute world class projects.
Slowdown signs - Leyland December sales down by 74% - 08 Jan 2009 BS reported that Ashok Leyland today posted a decline of 74% in domestic sales in December at 1,420 units as against 5,488 units sold in the same month a year ago.
In addition, to bring its inventory under control, the company was forced to shut down production at its plants resulting into a cut in output by more than 86 per cent during the same month.
As per report, its output fell to only 960 units during the month as compared to 7,110 units produced in the corresponding month a year ago. Company executives had mentioned earlier that the company will undertake heavy production cuts during December and January.
Lack of financing from banks and high interest rates impacted the company’s goods carrying medium and heavy commercial vehicle segment. This truck segment suffered massively as sales plunged by almost 87% at 637 units as against 4,153 units. Exports of the company, however, grew marginally by 5.75% at 901 units as against 852 units.
(Sourced from Business Standard)
CMPDI inks MoU with MECL - 08 Jan 2009 My Iris reported that the Central Mine Planning and Design Institute and the Mineral Exploration Corporation on January 7th 2009 inked a MoU that would enable coal exploration.
Mr Mr Ashok Kumar Singh chairman cum director of CMPDI said after signing the MoU that “This will be a major milestone in the direction of enhancing exploratory drilling in coal for the country.”
As per the MoU, CMPDI is committed to offer MECL exploratory drilling of about 100,000 meter per annum in different coal blocks marked for coal production by the end of the 12th plan period and beyond.
Mr Singh said that the CMPDI has drawn plans to double its own drilling capacity and harness available national and international resources.
(Sourced from myiris.com)
Developer for Tilaiya UMPP to be selected on January 20th - 08 Jan 2009 PTI reported that the final developer for the 4,000 MW Ultra Mega Power Project in Jharkhand will be selected on January 20th 2009, due to the absence of members in the selection committee.
A high level committee, which includes state representatives from Bihar and Jharkhand was formed to select the project developer.
Sources said that "Some members are out of station due to their official engagements and therefore would not be able to make it on time. Therefore the bids would be opened on January 20th from January 15th earlier."
The financial bids and technical bids for the coal based thermal power project were invited on December 29th and the final financial bids were to be opened within 15th days. 5 companies NTPC, Reliance Power, Lanco Infratech, Jindal Power and Sterlite Energy of the 11 pre qualified bidders, submitted their bids for the project.
The bidding process for this Ultra Mega Power Project has been delayed on various accounts in the past, including the global financial slowdown.
Apart from the delays in bidding, the Tilaiya project faced some delays over identification of site, getting water source and obtaining other regulatory clearances. The project entails an investment of around INR 18,000 crore and would have a debt equity ratio of 70:30.
However, Power Finance Corp is the nodal agency for UMPPs and is facilitating the process of selection of developer.
(Sourced from Press Trust of India)
Mytas Infra secures track doubling project from Southern Railways - 08 Jan 2009 Maytas Infra Limited has announced that the Southern Railway has entrusted the company with a project worth INR 110 crore for doubling the Broad Gauge track between Chengalpattu and Villupuram.
This project is a JV with CT Ramanathan and Maytas Infra will execute the projects in 18 months form the date of the agreement.
Mr VV Rama Raju CFO of Maytas Infra said that "We are extremely proud to be entrusted with the responsibility of modernization of tracks for Southern Railways. This project when completed will aid Southern Railways significantly ease the traffic flow between Chengalpattu and Villupuram in Tamil Nadu. We look forward to deliver this project on time using our strengths of people, machinery and technology." Maytas Infra has established itself as a strong player in the transportation vertical with over 10 successfully executed projects and 20 ongoing projects.
Indian domestic steel prices to decline by June end - Report - 08 Jan 2009 India Infoline News Service quoted Mr Rastogi Steel Secretary as saying that the domestic steel companies will likely lower metal prices in June following the fall in long term fuel prices.
According to the reports, steel prices in the country may fall by INR 3,000 per tonne after June because long term global rates for coking coal are expected to decline.
Mr Rastogi said that coking coal prices in the immediate delivery market have fallen by a third to USD 200 a tonne. The domestic steel companies will likely lower metal prices in June following the fall in long term fuel prices.
(Sourced from India Infoline News Service)
Slowdown signs - Kochi port feels meltdown heat - 08 Jan 2009 BL reported that Kochi Port Trust starts feeling the heat of global meltdown, the port authorities examine various options to boost cargo throughput and avert a probable dip in revenue earnings caused by the recessionary conditions. The options being examined include, among others, ship to ship transfer of petroleum products and LPG transshipment.
Mr N Ramachandran chairman of Kochi Port said that there has been a drop in traffic throughput, attributing it to the cargo mix. He pointed out that “Unlike many other major ports, which handle huge volumes of bulk items, Kochi port mainly handles high value but low volume items such as coir, marine products and agro products, with the main markets in the US and Europe. The recession in these countries has had an adverse effect on the exports of these items in containers through the port.”
Mr Ramachandran said that “We will offer concessions to operators of ship to ship transfers in our bid to position the port as a good transshipment point with some eastern ports that are unable to handle huge tankers with full load due to draught restrictions. He said that we’re in talks with several companies active in the field and we hope to firm up plans soon”.
Inquiries reveal that there has been a decline of around 30% on an average, in the port’s container throughput in last 3 months. The port handled 25,037 TEUs in September, 24,034 TEUs in October and 17,499 TEUs in November. The throughput dropped further in December to 16,400 TEUs. Last year, the throughput was 253,012 TEUs and the targeted throughput for 2008-09 is 300,000 TEUs.
(Sourced from The Hindu Business Line)
Indian Railway plans for new production units in 11th Plan - 08 Jan 2009 Indian Railways have decided to set up new Production Units during the 11th Five Year Plan.
1. These are Wheel Manufacturing Plant at Chhapra with the production capacity of 100,000 wheels per year
2. Green Field Electric Locomotive Factory at Madhepura with the capacity of producing 120 electric locomotives per year
3. New Rail Coach Factory at Rae Bareilly with production target of 1000 coaches per year
4. Diesel Locomotive Manufacturing Unit at Marhowra with production capacity of 150 diesel locomotives per year.
These Production Units will be set in JV with public private partnership.
In addition, while presenting the Railway Budget 2008-09, it has been announced that a new rail coach factory will be set up in the state of Kerala to meet the requirement of passenger coaches in the country.
Takata and Anand Automotive forms a auto component JV - 08 Jan 2009 Projects today reported that Takata Corporation has formed an equity JV with the Anand Automotive System to produce safety systems such as seatbelts, airbags and steering wheels for vehicle producers in the domestic market. The new JV company will be known as Takata India.
However, both the companies are likely to pump in INR 230 crore for the manufacturing facilities. The companies will be setting up two units, of which one will be coming up in Neemrana near Delhi and another in Chennai.
In the JV, the Japanese auto major will hold a majority stake while the equity of Anand group will increase in two stages.
As per report, Takata had received an approval from the Foreign Investment Promotion Board to establish a wholly owned subsidiary in India.
(Sourced from Projects today)
NTPC inks MoU with Hindustan Aeronautics - 08 Jan 2009 National Thermal Power Corporation Ltd has announced that a MoU has been signed on January 6th 2009 between the Company and Hindustan Aeronautics Ltd for preparation of Detailed Project Report for Repairs of Hot Gas Path Components which may eventually graduate to manufacturing facility creation for GT indigenously by forward and reverse engineering.
US 2008 steel imports down by 5% YoY - 08 Jan 2009 The American Iron and Steel Institute, based on the US Commerce Department’s most recent Steel Import Monitoring and Analysis data, reported today that steel import permit applications for the month of December totaled 2,009,000 net tons.
This was a 15 %percent decrease from the 2,366,000 permit tons recorded in November 2008 and a 10% decline from the November preliminary imports total of 2,241,000 net tons.
Import permit tonnage for finished steel in December was 1,797,000 net tons a decrease of 13% from the preliminary imports total of 2,058,000 net tons in November.
For 2008, including December SIMA and November preliminary, total and finished steel imports were 31,703,000 net tons and 25,739,000 net tons down by 5% and 3%respectively, from 33,244,000 net tons and 26,587,000 net tons imported in 2007.
BHP iron ore exports in December 2008 up by 5% MoM - 08 Jan 2009 Bloomberg reported that BHP Billiton Limited shipped 5% more iron ore from Australia in December 2008 than in November 2008, when exports hit a 9 month low on plunging demand from China.
According to the Port Hedland Port Authority, BHPB exported 10.6 million tonnes from Western Australia in December 2008 against 10.1 million tonnes in November 2008.
Steel, which has slumped by half since trading at a record in July, may be poised for a rebound as mills in China gain from infrastructure spending. China plans CNY 4 trillion of spending on housing, roads, railways and airports.
BHP closed 2.8% higher at AUD 32.60 on the Australian stock exchange.
(Sourced from: Bloomberg)
Production pruning - US weekly raw steel production dips by 54% YoY - 08 Jan 2009 American Iron & Steel Industries reported that in the week ending January 3rd 2009, US's raw steel production was 0.866 million tons while the capability utilization rate was 36.3%. Production was 2.128 million tons in the week ending January 3rd 2009, while the capability utilization then was 88.7%. The current week production represents a 59.3% YoY decrease from the same period in 2007.
Production for the week ending January 3rd 2009 is up by 8.3% WoW from the previous week ending December 27th 2008 when production was 0.8 million tons and the rate of capability utilization was 33.5%.
District wise production for the week ending January 3rd 2009
1. Northeast Coast: 91
2. Pittsburgh/Youngstown: 98
3. Lake Erie: 18
4. Detroit: 28
5. Indiana/Chicago: 257
6. Midwest: 106
7. Southern: 226
8. Western: 42
(In thousands of net tons)
AISI's estimate is based on reports from companies representing about 75% of the US's raw steel capability and includes revisions for previous months.
Somali pirates free iron ore laden Turkish ship MV Neslihan - 08 Jan 2009 It is reported that Somali pirates have freed for ransom the captured Turkish cargo ship MV Neslihan, which is transporting 77,000 tons of iron ore from Canada to China.
All 20 Turkish crew members were released. The ship owners did not reveal how much ransom they paid.
The ship was hijacked in the Gulf of Aden on October 29th 2008.
Japan's NSSC shuttering some steel plants for six months - 08 Jan 2009 Nikkei reported that Nippon Steel & Sumikin Stainless Steel Corp announced that it would suspend some thin sheet production lines for at least six months, as demand from homebuilders and electronics makers drops.
It said the closures would begin in February and could continue longer than six months if demand remains weak.
The report said that workers affected will be relocated or retrained.
AS per report, it is already operating at about half capacity for thin sheet steel.
NSSC is a joint venture between Nippon Steel Corp and Sumitomo Metal Industries Ltd and commands a leading 30% share of the domestic market for stainless steel.
(Sourced from Nikkei)
China to speed up mergers and close obsolete steel plants - 08 Jan 2009 Bloomberg reported that China the world’s largest steelmaking nation plans to speed mergers and close obsolete plants as part of a stimulus policy to support mills during the economic slowdown.
Mr Li Xinchuang VP of the China Metallurgical Industry Planning and Research Institute in an interview said that the government will use tax subsidies, give financial support and help with unemployment. He added that a final decision hasn’t been made.
Mr Li said that “The policies will speed up domestic acquisitions, while keeping restrictions on external investments unchanged.”
Mr Li added that the government is still reviewing the stockpile plan and hasn’t made a final decision.
Premier Wen Jiabao recently said that China is drawing up plans to support the steel and car industries after growth in the world’s fourth largest economy sagged.
Mr Jing Ulrich head of China equities at JPMorgan Chase & Co in Hong Kong wrote that “The Chinese steel industry posted its first combined loss in six years in 4Q of 2008. As we look through the current cyclical slowdown, we expect larger steel companies will become active industry consolidators.”
China is spending CNY 4 trillion (USD 584 billion) to stimulate its economy through metal-intensive projects such as railways and housing.
(Sourced from bloomberg.net)
ArcelorMittal Zenica halts production after gas cuts - 08 Jan 2009 Reuters reported that ArcelorMittal is suspending manufacturing at its Zenica plant in Bosnia due to the reduction in gas supplies from Russia.
The report cited a spokesman as saying that "We are temporarily suspending manufacturing activities in response to a serious shortage in gas supply.”
He said the company's coke plant in Bosnia would continue to operate at a higher level to generate more coke oven gas to compensate for the natural gas shortage.
He added that “No other plants are affected by the cut in gas supplies from Russia.”
Russian gas supplies to Europe through Ukraine shut down completely on Wednesday due to a price dispute between Moscow and Kiev.
(Sourced from Reuters)
BHPB bid for Rio - BHPs biggest decision in 2008 - 08 Jan 2009 There were plenty of terrible management decisions made by corporate boards during the turbulent past year, but what was the best decision that any board made in 2008?
High on the ladder will be the BHP decision to step back from the Rio Tinto bid. It couldn’t have been an easy decision because enormous effort had been put into the merger and many people had said that the reputations of Mr Marius Kloppers the CEO and Mr Don Argus chairman of BHP had been invested in the merger.
However, in the latter half of the year Mr Kloppers, Mr Argus and the board became aware that the fall in the value of mining assets was so severe that the Rio Tinto debt would have impaled BHP. Many on the BHP board would have sensed that a Rio acquisition was in danger of being a repeat of the ill fated Magma acquisition of the 1990s.
BHP without Rio Tinto is now a company with an enormous cash flow and little or no debt. It is able to scour the world looking for low cost mineral projects that have very good prospects, but which have been caught in the hands of over leveraged owners. BHP may even buy some of the Rio Tinto assets.
Also BHP stock rose following the merger abandonment and BHP has a real chance to set itself up for the future at prices that could never have been dreamt of 12 or even six months ago. And if the China rescue package works, it will rekindle demand for commodities which will make asset purchases made in the next six months very attractive.
(Sourced from: Businessspectator.com)
Gazprom ready to start negotiations with Naftogaz Ukrainy - 08 Jan 2009 Mr Sergey Kupriyanov an official spokesman of OAO Gazprom said that “From the beginning of this year, in the absence of a contract for gas supply to Ukrainian consumers, unauthorized withdrawal of the natural gas intended for European consumers took place in Ukraine.”
He added that “Currently, the rates of unauthorized withdrawal of the Russian gas intended for European consumers are growing in Ukraine. Gazprom has taken measures to eliminate possibility of illegal actions by Naftogaz Ukrainy.”
He said that “Gas supplies to Ukraine have been reduced. We take further steps to satisfy the demand of our European consumers: additional volumes of gas are supplied across Belarus and via the Blue Stream pipeline, we use our reserves contained in European underground gas storage facilities and perform operations at the spot market. The Ukrainian party is to blame for the current situation.”
He added that “We are surprised with the statements of intention to continue negotiations not earlier than on January 8. With crisis situation in mind we are ready to start negotiations at any moment. Gazprom has always been and will be a reliable gas supplier.”
METI sees Japanese crude steel output at 21.1 million tonnes in Q4 - 08 Jan 2009 According to the demand survey for January to March 2009 period by the Ministry of Economy, Trade & Industry, Japan's crude steel production is estimated to total 21.1 million tonnes in fourth quarter of fiscal 2008, down by 31.6% YoY from fourth quarter of 2007 and down by 22% QoQ from third quarter of 2008. The estimate means a low level of Japan's fourth-quarter crude steel production for the first time in 39 years since the fourth quarter of fiscal 1969 when production stood at a total of 18,280,000 tons.
The following are what METI describes as the prospects of the nation's steel demand in January to March 2009 quarter:
Demand for ordinary steel products
Demand is estimated to total 18,070,000 tonnes, down by 20.2% YoY and down by 8.9% QoQ. Of the estimated demand, domestic demand accounts for 13,810,000 tonnes, down by 14.3% YoY and down by 8.1% QoQ.
Demand for specialty steel products
Demand is estimated to total 3,590,000 tonnes, down by 37.7% YoY and down by 24.7% QoQ. Of the estimated demand, domestic demand accounts for 2,600,000 tonnes, down by 37.6% YoY and down by 24.5% QoQ.
METI's perspective
The demand environment for steel products has deteriorated considerably, compared with the ministry's previous demand survey. Corporate activities are on the decline amid a rapid economic downturn both at home and abroad. Steel demand for construction in January to March 2009 quarter is expected to show a more fall than in the same period of 2008 when construction demand was influenced by the revised Building Standards Law.
Also, steel demand from manufacturing industries in January to March 2009 quarter is expected to come under a more decline than in the same period of 2008 because major production adjustments are under way in most of the demand industries such as autos. As a result, the nation's demand for steel products is estimated to total 21,660,000 tonnes in January to March 2009 quarter, down by 12% QoQ.
(Sourced from TEX Report Ltd)
Chinese November coke exports dip by 17% YoY - 08 Jan 2009 Latest statistics from the customs show that during January to November in 2008, China exports 11.904 million tonnes of coke, down 16.9% YoY with the value of USD 5.71 billion, up 110%. Export in November posts at 0.324 million tonnes down 72.4% YoY or 38.4% MoM, the lowest monthly export level in 2008.
According to the survey from the customs on January 4th 2009 the average coke export price is posted at USD 479.7 per tonnes in the period up by 150% YoY with the following features:
First, export falls dramatically during October to November China has pulled up coke export tax to 40% on August 20th 2008. After that, September coke export began to reduce after exporters rush to ship out materials in August. And the volume in October shrank further to 0.526 million tonnes, a massive YoY down of 63%, or MoM falls of 62.4%, November average export price posts at USD 560.9 per tonnes, down USD 48.1 per tonnes from the previous month.
Second, most exports are through general trade. During January to November, China coke exports by general trade record at 11.56 million tonnes down 17.4% YoY, accounting for 97.1% of China total export during the same period.
Third, the state owned enterprises take up 60% of total exports, 6.814 million tonnes during January to November 2008, down 21.1% YoY, while the private ones export 3.39 million tonnes, down 2.9% YoY or 28.4% of the total volume.
Fourth, the main export destinations are Brazil, US, Japan and India. During January to November export to Brazil records at some 2.36 million tonnes, up 6.3% YoY to US, 2 million tonnes up 49%; to Japan, 1.98 million tonnes down 37.1% and to India, 1.05 million tonnes down 53%. All those above take up 62.2% of China total coke export in the period.
(Sourced from China Customs)
Gas crisis hits steel mills in Bulgaria - 08 Jan 2009 Novinite reported that production at most of the Bulgarian steel mills is likely to be ceased within a couple of days as they are dependent on the gas supply.
The report cited Mr Vassil Yanachkov a representative of KNSB trade union as saying that "About 80% of the production powers in the factories work below their minimum capacities.”
He said that "Promet Factory in the seaside city of Burgas has already stopped its production. Its example will be followed by Stomana Industry.”
Mr Yanachkov emphasized the transit to usage of alternative fuels in the factories is long and complex process, which needs huge investments.
He added that "If the gas dispute does not end soon, it will lead to dismissals and serious social tension.”
(Sourced from Novinite)
Slowdown signs - Contract awards in the GCC fall by 57% in Q4 - 08 Jan 2009 According to the latest data from MEED Projects, the value of contract awards in the GCC fell 57% in the fourth quarter of 2008. The value of contract awards in the period from October to December of 2008 was USD 15.7 billion, down from USD 36.7 billion in the previous quarter.
As per the report, UAE has suffered the biggest drop, falling by 40% during the final quarter of 2008. The latest figures show that just USD 14.4 billion of contract awards were made during the fourth quarter of 2008, down from USD 23.3 billion during the third quarter. The figure is down 12.5% on the same period in 2007.
GCC contract awards 2008 (USD billion) | Country | Q1 | Q2 | Q3 | Q4 | 2008 total
| | Bahrain | 0.39 | 0.49 | 0.44 | 0.72 | 2.04
| | Kuwait | 0.28 | 0.97 | 3.50 | 0.16 | 4.91
| | Oman | 0.17 | 0.50 | 4.90 | 0 | 5.57
| | Qatar | 5.97 | 6.60 | 0.75 | 0.40 | 13.72
| | Saudi Arabia | 2.57 | 2.75 | 3.85 | 0.36 | 9.53
| | UAE | 23.40 | 21.20 | 23.30 | 14.10 | 82.00
| | | | | | |
Although the total value of project awards in 2008 increased by 36% on the previous year to USD 82 billion, the last two months of the 2008 saw a dramatic fall in activity, as the sector struggled to secure financing in the wake of the global credit crisis and projects began to be put on hold.
Over the past five years, the sector has become one of the most important parts of the UAE economy. A recent report by US credit ratings agency Standard & Poor's estimated that the construction and real estate sectors account for almost half of Dubai's GDP.
The report also noted that in the final quarter of 2008, thousands of construction professionals were made redundant. Nakheel laid off 500 people in November 2008 and, since then, there has been a stream of redundancies at other developers and consultants. In late December, Al-Shafar General Contracting became the first contractor to lay off workers as its clients put projects on hold. More projects are expected to be put on hold in the coming months and the low number of schemes being tendered suggests that there will be even fewer contract awards in the first quarter of 2009.
It is unlikely that there will be any significant improvement across the region in 2009 as real estate developers struggle to sell properties, particularly in Dubai.
(Sourced from: MEED)
PT Bumi buys mining operator stake for USD 218 million - 08 Jan 2009 Reuters reported that PT Bumi Resources Tbk has agreed to buy a 44% stake, worth USD 218 million in PT Darma Henwa Tbk, a mining operator which has contracts with Bumi.
Bumi said it would pay 10% of the value of the deal up front, and a further 10% during the first year, with the remainder due to be paid at the end of the third year. It added that it used a coal SPV, or special purpose vehicle, to buy an 80% stakes in Zurich Assets International Limited, which owns the 44% stake.
Mr Ari Hudaya president director of Bumi said in a statement that "The acquisition is one more major step in realizing Bumi's coal expansion and mining related diversification plans."
Bumi shares down by 9.4% on December 7th 2008 at IDR 77.
(Sourced from: Reuters)
Downsizing deals - CSN to evaluate possible layoffs next week - 08 Jan 2009 BNamericas reported that Brazilian steelmaker CSN is evaluating new layoffs as of next week.
A CSN spokesperson said that "Upon the return of our employees following the holiday break, we will evaluate what are the new steps to be taken. A decision could happen next week or even in following weeks."
The spokesperson said that CSN is still in talks with labor unions in Rio state's Volta Redonda region, where CSN's main steel mill is located. He added that there could be a decrease in output.
It may be noted that CSN dismissed 400 workers in mid December 2008.
(Sourced from bnamericas.com)
India to cancel allotment of 10 captive coal blocks - 08 Jan 2009 PTI reported that the India government is contemplating to take back at least 10 captive coal blocks from public and private sector companies such as Monnet Ispat, Adhunik Group, Haryana Power Corporation and NCT Delhi as the firms failed to develop properties in time.
While reviewing the progress of 24 captive coal blocks today, Mr Santosh Bagrodia minister of State for Coal is believed to have conveyed to 10 allottees that the government may soon cancel their allotments.
A top official in the Coal Ministry said that "The companies have been issued several reminders to ensure timely development of the coal blocks, but as they have failed to do so, the government seriously plans to take them back."
Among the allottees facing the threat of de allocation are Monnet Ispat, Adhunik Group, Electrosteel, Chhatisgarh Mineral Development Corporation, Haryana Power Corporation, NCT Delhi and Jharkhand State Electricity Board. While Monnet Ispat was allotted a 106 million tonne Utkal coal block in Chhatisgarh, Adhunik Group and Electrosteel were jointly given a 923 million tonne Dahdhu block in Jharkhand.
Similarly, Haryana Power Corporation and NCT Delhi were allotted a joint block with cumulative reserve of 477 million tonne while Chattisgarh Mineral Development Corporation was given Tara block with a reserve of 500 million tonne.
However, the Coal Ministry has so far allotted 196 captive coal blocks with a cumulative reserve of 51 billion tonne. The blocks are exclusively meant to cater to the coal requirement of the allottees.
(Sourced from Press Trust of India)
US Steel Kosice cuts output on gas crisis - 08 Jan 2009 Dow Jones reported that US Steel Corp has reduced its production in the eastern Slovakian town of Kosice after gas supplies from Russia to Ukraine were brought to a halt.
The report cited a company spokesman as saying that "We have adjusted our production in line with the restrictions" imposed by the Slovakian government, said, following a halt in gas deliveries from Russia via the Ukraine.”
He declined to disclose how much production was cut at the plant.
US Steel Kosice is able to produce 4.5 million tonnes of hot metalper annum.
(Sourced from Dow Jones)
Production pruning - Boliden mulls closure of Irish zinc mine - 08 Jan 2009 Reuters quoted a union representing workers at the operation of Tara zinc mine in Ireland as saying that Swedish copper and zinc miner and smelter, Boliden is considering placing the mine on care and maintenance.
The SIPTU trade union said that "Boliden is proposing to substantially reduce productivity related earnings and revise shift patterns. If the plan goes ahead with its proposal to put the mine on a care and maintenance basis from January 19th 2009, this will have a terrible impact on the economy of County Meath.”
As per Boliden's, the mine located 50 kilometers from Dublin is Europe's largest zinc mine. Some 2.7 million tonnes of ore are mined annually at Tara containing up to 200,000 tonnes of zinc and 40,000 tonnes of lead metal.
Officials at Boliden were not immediately available for comment.
(Sourced from: Reuters)
Downsizing deals - Alcoa cuts to affect 18% of Russian workforce - 08 Jan 2009 Reuters reported that Alcoa Inc which is cutting aluminium production and jobs in the face of the global economic downturn, plans measures in Russia that will affect 18% of its workforce in the country.
Alcoa, which employs 7,900 people in Russia, said that it aimed to align production at its two aluminium fabrication plants with demand and to reduce costs. The measures will be executed throughout 2009.
Mr Andrei Donets president of Alcoa Russia said that "We will have to make a number of very tough decisions, but such is the requirement of the current economic situation which we can't ignore.”
Pittsburgh based Alcoa said on Tuesday it would slash more than 15,000 jobs worldwide, halve capital spending and sell four businesses as it reduces aluminium production by 18 percent in the face of the global economic downturn. In Russia, the company owns the Samara Metallurgical Plant which was the Soviet Union's largest aluminium fabrication plant and Alcoa Metallurg Rus in the southern town of Belaya Kalitva. Neither plant is profitable.
Alcoa did not specify whether the 18% of the workforce would be fired. The company said it would redeploy and retrain employees affected by the restructuring, which will affect its Moscow office as well as the two plants. It also did not give details about production plans.
Alcoa bought its two Russian plants in 2005 and has invested USD 768 million in their development, including the USD 257.5 million acquisition price.
(Sourced from Thomson Reuters)
CSP clarifies on Dongkuk announcement about Ceara to KOSPI - 08 Jan 2009 Companhia Siderúrgica de Pecém (CSP) released that "The communiqué sent by South Korean Dongkuk Mill Co, one of the stakeholders of Ceará plant, to South Korean stock exchange KOSPI was, in fact, related to the old project of Ceará Steel mill." Dongkuk in the document, dated December 31st 2008, had said that it is reconsidering the plans.
CSP said that "The objective of the message was to report the procedure with the construction of steel mill in the State of Ceará, whose previous project has been aborted." The current project - based on blast-furnace instead of direct reduction module - will continue. CSP, however, did not give more details about its plans for building the plant in the state.
(Sourced from Diário do Nordeste)
Chinese stainless makers to raise output in 2009 - 08 Jan 2009 It is reported that some Chinese stainless steelmakers are considering to raise output for January 2009, encouraged by the stabilizing nickel market as a result of crude oil price rise and etc during this period.
According to the mills, Taigang may continue to follow the orders for production arrangement, Baosteel could moderately increase the output, which has actually been started from December 2008, while ZPSS is said to cut the output further.
Based on the market source, Baosteel Stainless production plan for 2009 could be some 1.1 million tonnes, down by 8.3% YoY from 1.2 million tonnes. The company must operate at its full scale to meet this target, and possibly the production will go up in the next periods and weigh on the market pressure.
It's rumored that Taigang Stainless would generate 2.02 million tonnes in 2009, down by 8.2% YoY from 2.2 million tonnes. In early 2008, Taigang Stainless had aimed to produce 2.4 million tonnes, but the yield was adjusted later to get in line with the market changes.
(Sourced from www.Mysteel.net)
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China to step up shutdown of small coalmines - 08 Jan 2009 Chinamining reported that China is likely to step up shutting down 2,500 small coalmines in the coming 2 years when coal is oversupplied.
As per report, China needs to shut down 4,000 coalmines in the last 3 years of the 11th Five Year Plan period, of which 2,500 small coalmines need to be entirely closed down.
According to Guangzhou South China Coal Trade Centre, if each coalmine produces 600,000 tonnes of coal every year, the shutdown of the 2,500 small coalmines would cut 150 million tonnes of coal production capacity.
China's key coal producing provinces have been required to shut small coalmines with annual production capacity under 300,000 tonnes, which contribute to a total coal output of 900 million tonnes.
The production suspension of small coalmines for one month would cut 70 million tonnes to 80 million tonness of coal output, sufficient to ease the coal oversupply in Chinese market, which is estimated at 60 million tonnes in 2009. Meanwhile, large coalmines in China's major coal producing provinces are also required to cut 30% production capacity so as to help alleviate the country's coal oversupply.
(Sourced from Chinamining)
Fitch sees base metals demand picking up in H2 - 08 Jan 2009 Ratings agency Fitch Ratings said that improvement in credit availability and implementation of fiscal stimulus programs could result in stronger demand in the second half of 2009 although growth in the global base metals sector was expected to slow over the next 12 months.
In its newly released base metals outlook report, Fitch stated that earnings were expected to decline in 2009 from the robust 2008 levels, however, runoff of working capital and active management of capital budgets should partially offset the impact on free cash flow.
Mr Monica Bonar director of Fitch Ratings said that demand from China and developing nations had previously driven strong growth in base metals consumptions, but that growth would slow for at least the next 12 months. However, the recently announced Chinese stimulus should improve metals demand, as the country accounted for 20% to 35% of the world's consumption of base metals.
Fitch noted in particular the USD 586 billion infrastructure spend announced by the Chinese government in November, aimed particularly at reconstruction in the Sichuan province. The province was rocked by a devastating earthquake measuring 7.9 on the Richter scale in May.
Fitch noted that severe demand declines for most metals in the second half of 2008 have resulted in rising stocks and falling prices.
Ms Bonar said that "The credit markets have tightened significantly, inducing a consumer recession." She noted that metal prices have fallen sharply and that production and capital expenditure cutbacks were being considered or announced.
(Sourced from miningweekly.com)
Zhongjin Lingnan expecting Perilya shareholder approval in February - 08 Jan 2009 Zhongjin Lingnan Nonfemet Company Limited announced on last January 6th 2009 that it is expecting to attain approval from Perilya Limited shareholders at a meeting on February 5th for its proposed deal to buy a 50.1% stake in the Australian Stock Exchange listed lead and zinc mining company.
CBH slams takeover recommendation by board of Perilya - 08 Jan 2009 It is reported that CBH Resources has lashed out at board of its takeover target Perilya for recommending its shareholders approve a rival bid from Chinese steel making giant Shenzhen Zhongjin Lingnan Nonfemet.
Perilya had called for shareholders to approve a USD 45.5 million placement of shares to Zhongjin, which would give it effective control of the company, at an extraordinary meeting scheduled for February 5th 2009.
Mr Paul Arndt MD of Perilya said the proposed deal was, in the board’s opinion, superior to an unsolicited all script offer put by rival bidder CBH.
But CBH has strongly criticized the board’s move, describing the Zhongjin offer as suboptimal.
CBH said it a statement to the ASX “It is very important that Perilya shareholders recognize that under the Zhongjin Lingnan proposal, they will receive no consideration for their shares. Furthermore, they are being asked to vote to approve control of their company passing to Zhongjin Lingnan, with no sustainable plan being advanced for addressing the operational inefficiencies which are continuing at Broken Hill, Perilya’s main asset.”
The statement added that “In addition, they will remain shareholders in a company which has demonstrated a consistent record of poor performance over recent months.”
CBH said its offer was clearly superior to that of Zhongjin at current share prices and because it would involve a merger and integration of each company’s operations at Broken Hill.
CBH also said Perilya's arrangements with Zhongjin Lingnan constituted several potential breaches of the conditions of CBH's takeover offer for Perilya. It said it would be informing the market of its response to these breaches soon.
It may be mentioned that Perilya revealed this week an independent report by Ernst and Young had described the Zhongjin offer as not fair but reasonable. The Chinese government has approved the deal but Australia’s foreign investment review board is yet to grant approval.
CBH’s hostile USD 28.9 million all scrip bid closes on March 13th 2009.
Japanese November carbon steel export drops by 9.2% YoY - 08 Jan 2009 According to Japan Iron & Steel Federation, Japanese carbon steel export decreased by 9.2% YoY to 1.797 million tonnes in November 2008.
Meanwhile, the export dropped by 14.6% MoM from October due to slowing economy in Asia. The total steel export decreased by 41.5% YoY for South Korea from a year earlier.
(Sourced from www.japanmetalbulletin.com)
Middle East price index show decline - 08 Jan 2009 The Middle East Long Product Price Index (MLPPI) dipped by 14 points and the Flat Product Price Index (MFPPI) declined by 11 points. The overall price Index (MEDSPI) also fell by 13 points.
| Class | 4-Jan | 6-Jan | Change
| | MLPPI | 4245 | 4231 | -14
| | MFPPI | 6548 | 6537 | -11
| | MEDSPI | 4943 | 4930 | -13
| | | | |
MLPPI – Middle East Long Product Price Index
MFPPI – Middle East Flat Product Price Index
MEDSPI – Middle East Steel Price Index
| Category | 4-Jan | 6-Jan | Change
| | PI – Rebar | 3615 | 3613 | -2
| | PI - WRC | 4127 | 4126 | -2
| | PI - Angle | 5533 | 5335 | -198
| | PI – Structural | 5582 | 5577 | -6
| | PI – HEA | 6609 | 6609 | -1
| | | | |
| Category | 4-Jan | 6-Jan | Change
| | PI - Narrow Plates | 6361 | 6318 | -42
| | PI - Wide Plates | 8408 | 8413 | 5
| | PI - Hot Rolled | 5427 | 5414 | -13
| | PI - Cold Rolled | 6087 | 6087 | 0
| | PI - Galvanized | 6264 | 6264 | 0
| | | | |
To know more about these indices please visit
http://steelprices-middleast.com
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NDRC approves two coal mine projects in Shaanxi - 08 Jan 2009 Shaanxi Daily reported that the National Development and Reform Commission of China had recently approved two large coal mine projects to start construction in northwest China's Shaanxi Province.
The paper said that the two coalmine projects are the Hongliulin Coalmine in Shenfu mining area and the Jianbei Coalmine in Huangling mining area.
It said that Hongliulin Coalmine is designed to have an annual coal production capacity of 12 million tonnes and form a capacity of producing 10 million tonnes of coal at the initial stage. Coal preparation plant with corresponding size will be built as well. The total investment is expected to CNY 2.097 billion. The coal mine, controlled and constructed by Shaanxi Coal and Chemical Industry Group, will be the first modern large coalmine with a capacity of 10 million in Shaanxi Province.
Jianbei Coalmine is designed to produce 2.4 million tonnes of coal a year with coal preparation plants of corresponding size. It will be jointly invested by Shaanxi Coal and Chemical Industry Group, China Huadian Group and Shanxi Henglixin Energy Investment Management Company, which respectively would contribute 40%, 30% and 30% of the total investment of CNY 849 million.
Two large coalmine projects in northwest China's Shaanxi Province have recently got approval from the National Development and Reform Commission to start construction. The two coalmine projects are the Hongliulin Coalmine in Shenfu mining area and the Jianbei Coalmine in Huangling mining area. Hongliulin Coalmine is designed to have an annual coal production capacity of 12 million tonnes and form a capacity of producing 10 million tonnes of coal at the primary stage. It will be the first modern large coalmine with a capacity of 10 million in Shaanxi Province.
The coalmine with attaching coal dressing plants will involve a total investment of CNY 2.097 billion. It will be controlled by Shaanxi Coal and Chemical Industry Group.
Jianbei Coalmine is designed to produce 2.4 million tonnes of coal a year with coal dressing plants of corresponding size attached. It is estimated to cost a total investment of CNY 849 million. It will be jointly invested by Shaanxi Coal and Chemical Industry Group, China Huadian Group and Shanxi Henglixin Energy Investment Management Company, which are committed to 40 %, 30 % and 30 % of the total investment respectively.
(Sourced from Shaanxi Daily)
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