| 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 | 1.5242 | | BRL | 2.3126 | | CAD | 1.2281 | | CNY | 6.8297 | | EUR | 0.7695 | | GBP | 0.7265 | | INR | 49.0761 | | JPY | 89.0051 | | RUB | 32.8077 | | USD | 1.0000 | | ZAR | 10.1651 | | View Current Currency | | Metal Rates Cash Seller & Settlement | | Zn | USD 1140 | | | Ni | USD 11600 | | | Sn | USD 12030 | | | Al | USD 1300 | | | Cu | USD 3280 | | | View Current Metal Rates | | Steel Futures | | NCDEX | 23900 (19-Dec) | INR | 0 |  | | DGCX | 480 (23-Jan) | USD | 0 | | | LME-M | 305 (23-Jan) | USD | -20 |  | | LME-F | 300 (23-Jan) | USD | 0 | | | NCDEX :
NCDEX Mild Steel Ingot Future Closing Price DGCX :
Dubai Steel Rebar Futures Closing Prices LME-M :
LME Steel Billet Future Buyer Prices (Mediterranean) LME-F :
LME Steel Billet Future Buyer Prices
(Far East) | | | | Others
Downsizing deals - Corus to cut 3500 jobs - 27 Jan 2009 Corus has announced a series of strategic measures that will improve its competitive position. The initiative focuses on 3 areas namely divestments, asset restructuring and a company wide efficiency and overhead review.
A Corus release said that “In the last quarter of 2008, Corus addressed the immediate effects of the economic downturn through a series of measures that are expected to yield about GBP 600 million in cash benefits in the six months to the end of March 2009. These measures also include taking the opportunity to provide additional training to employees experiencing temporary shortages of work. It will continue to discuss with employee representatives options to match payroll costs with the new production and demand levels.”
The release added that “The recent initiative is strategic and structural in nature. Elements of the initiative comprise long term plans that were already under consideration, but which have been brought forward as a result of the slowdown. It should bring annual improvements in operating profit of more than GBP 200 million. It will also put around 3,500 jobs at risk around the company as a whole. Corus currently employs about 42,000 people.”
Mr Philippe Varin CEO of Corus said that "The structural changes we are proposing today have been carefully considered. They are essential for the future of the business. The company will keep its focus on priority areas such as training, research and product development, which, together with today’s initiative, will ensure Corus is in the best possible shape to compete strongly in the future."
The key features of the initiative are:
Divestments
Sale of Corus’ aluminium smelters in Germany and the Netherlands and advanced discussions on the sale of a majority stake in Teesside Cast Products, which would bring clarity to the future of the Teesside operations beyond the current off take agreement.
Asset restructuring
Mothballing of the Llanwern hot strip mill; restructuring of engineering steels into two businesses, a specialty steels business at Stocksbridge fed by electric furnace steel from Rotherham and a bar business at Rotherham with steel sourced from the integrated works at Scunthorpe and streamlining of downstream facilities in Distribution, Building Systems and Tubes
Efficiency and overhead review
A company wide efficiency improvement review, including a review of support functions such as IT, Finance and Human Resources, with a target to reduce costs in these areas by around 20%.
In addition, Corus intends to make changes to the British Steel Pension Scheme. While the scheme is in a healthy position, the company will, in line with market practice, close the Defined Benefit scheme to new recruits, who will be offered a Defined Contribution scheme. Steps will also be taken to ensure that the company contribution to future service for existing members remains at 12%.
Monday Market Monitor - India (WEEK 4) - Relentless slide continues - 27 Jan 2009 Indian domestic prices of long and flat products exhibited major decline last week. The ILPPI fell by a whopping 168 points, whereas the fall in flat products was less pronounced but significant as the IFPPI fell by 56 points. The overall price index INDSPI plummeted by 115 points.
The price for Long products continued reeling under the impact of yet prevalent RINL syndrome and the ensuing undercutting by steel majors.
Flat product prices too maintained a downward trend although it was less pronounced.
| Class | 16-Jan | 23-Jan | Change
| | ILPPI | 6940 | 6772 | -168
| | IFPPI | 6722 | 6666 | -56
| | IDSPI | 6836 | 6721 | -115
| | | | |
ILPPI – Indian Long Product Price Index
IFPPI – Indian Flat Product Price Index
INDSPI – Indian Steel Price Index
The lowest values since, August 5th 2008, was yet to reach in long products, although not far fetched, but flat products did so on 23 rd January ’09 as follows:
| Class | 23-Jan | Lowest
| | ILPPI | 27-Oct | 6672
| | IFPPI | 23-Jan | 6666
| | INDSPI | 23-Jan | 6721
| | | |
ILPPI – Indian Long Product Price Index
IFPPI – Indian Flat Product Price Index
INDSPI – Indian Steel Price Index
Long products
| Category | 16-Jan | 23-Jan | Change
| | PI - TMT | 6692 | 6534 | -158
| | PI - WRC | 7384 | 7210 | -174
| | PI - Angle | 6605 | 6426 | -179
| | PI - Channel | 6694 | 6480 | -214
| | PI - Joist | 6406 | 6272 | -134
| | | | |
Flat products
| Category | 16-Jan | 23-Jan | Change
| | PI - Narrow Plates | 6378 | 6308 | -71
| | PI - Wide Plates | 6943 | 6822 | -121
| | PI - Hot Rolled | 6499 | 6453 | -45
| | PI - Cold Rolled | 7314 | 7278 | -36
| | PI - Galvanized | 7007 | 6944 | -63
| | | | |
To know more about these indices please visit
http://steelprices-india.com/spi_services/spi.html
Input materials
Domestic prices for input material dropped across the country:
Melting scrap
80:20
HMS
| Location | Change | %
| | Chennai | 436 | 2.8%
| | Kandla | -697 | -3.6%
| | Mumbai | 200 | 1.3%
| | Mandi | -453 | -2.3%
| | Kolkata | -453 | -2.4%
| | Kanpur | -697 | -4.1%
| | | |
Change on January 23rd is with respect to January 16th 2009
Change is in INR per tonne
Alang
| Product | Grade | Size | Change | %
| | Ships | Melting | Mixed | -750 | -4.5%
| | Plate cuttings | Rolling | 1” | -100 | -0.5%
| | | | | |
Change on January 23rd is with respect to January 16th 2009
Change is in INR per tonne
Pencil ingot
| Location | Change | %
| | Mumbai | -1000 | -4.5%
| | Mandi | -816 | -3.5%
| | Raipur | 0 | 0.0%
| | Kanpur | -1569 | -6.8%
| | Kolkata | 0 | 0.0%
| | Ghaziabad | -200 | -0.9%
| | Muzzafarnagar | -261 | -1.2%
| | Ahmedabad | -300 | -1.3%
| | | |
Change on January 23rd is with respect to January 16th 2009
Change is in INR per tonne
Pig Iron
| Location | Change | %
| | Raipur | -1900 | -9.8%
| | Kolkata | -226 | -1.1%
| | | |
Change on January 23rd is with respect to January 16th 2009
Change is in INR per tonne
Sponge iron
| Location | Change | %
| | Raipur | 1300 | 10.7%
| | Kolkata | 0 | 0.0%
| | | |
Change on January 23rd is with respect to January 16th 2009
Change is in INR per tonne
Scrap prices fell consistently in India contrary to International price movements which remained stable at USD 295 per tonne to USD 300 per tonne on CFR Mumbai levels. The prices are expected to slide in the coming weeks owing to emergence of enhanced supply as a fallout of heightened activity in ship breaking scrap (Refer to STT of January 21st 2009 - Indian ship breaking industry defies rational expectations). Although the latest trend has been of the peak ebbing with more re negotiations setting in but the material already under process is likely to dampen the spirits.
Pig Iron and Pencil Ingot too demonstrated similar movements but it was reactionary to the lack of demand for downstream products rather than anything else.
The only saving grace was sponge iron and iron ore which held forte owing increased demand from Sintering units and buying pressure from Chinese suppliers as the Lunar Holidays closed by and the stocks at Chinese ports plummeted to 58 million tonnes (less than 2 months).Increase in production by Chinese mills also set the tone for stable Iron ore prices.
Long Products
Long products price slide continued for the 4th consecutive week
TMT
Fe 415
12mm
| Location | Change | %
| | Chennai | -1040 | -2.9%
| | Mumbai | -1721 | -5.7%
| | Mandi | -936 | -2.7%
| | Kolkata | 0 | 0.0%
| | Delhi | 501 | 1.5%
| | Kanpur | -1300 | -4.1%
| | Ahmedabad | -1262 | -4.1%
| | Indore | 0 | 0.0%
| | | |
Change on January 23rd is with respect to January 16th 2009
Change is in INR per tonne
WRC
SWR14
5.5/6
| Location | Change | %
| | Chennai | -874 | -2.8%
| | Raipur | -872 | -3.1%
| | Kolkata | -962 | -3.1%
| | Delhi | 0 | 0.0%
| | Kanpur | -697 | -2.2%
| | | |
Change on January 23rd is with respect to January 16th 2009
Change is in INR per tonne
ANGL
GR A
65x6
| Location | Change | %
| | Chennai | -520 | -1.4%
| | Mumbai | -574 | -1.9%
| | Mandi | -936 | -2.7%
| | Raipur | -1040 | -3.5%
| | Kolkata | -772 | -2.2%
| | Delhi | -1560 | -4.8%
| | Kanpur | -600 | -1.9%
| | Ahmedabad | -1262 | -4.2%
| | Indore | -1000 | -3.1%
| | Bangalore | -1000 | -3.1%
| | | |
Change on January 23rd is with respect to January 16th 2009
Change is in INR per tonne
CHNL
GR A
75/100
| Location | Change | %
| | Chennai | -1560 | -4.2%
| | Mumbai | -574 | -1.9%
| | Mandi | -832 | -2.4%
| | Raipur | -1040 | -3.4%
| | Kolkata | -552 | -1.6%
| | Delhi | -2080 | -6.3%
| | Kanpur | -900 | -2.7%
| | Ahmedabad | -1262 | -4.1%
| | Indore | -1150 | -3.5%
| | Bangalore | -1000 | -3.0%
| | | |
Change on January 23rd is with respect to January 16th 2009
Change is in INR per tonne
JSTI
GR A
250x125
| Location | Change | %
| | Chennai | -520 | -1.3%
| | Mumbai | -574 | -1.8%
| | Mandi | 0 | 0.0%
| | Raipur | -1040 | -3.3%
| | Kolkata | -1103 | -3.1%
| | Delhi | -1040 | -3.1%
| | Kanpur | -500 | -1.5%
| | Ahmedabad | -1248 | -3.8%
| | Indore | -1300 | -3.8%
| | Bangalore | -500 | -1.5%
| | | |
Change on January 23rd is with respect to January 16th 2009
Change is in INR per tonne
(Refer to Steel Trading Today dated January 20th 2009 - RINL aggressive pricing hits secondary steel makers in AP)
Flat products
The flat product maintained its downward trend during last week
HRC
Tube
2.5x1250
| Location | Change | %
| | Mumbai | -453 | -1.7%
| | Ludhiana | -544 | -1.9%
| | Kolkata | 436 | 1.4%
| | Delhi | 0 | 0.0%
| | Ahmedabad | 0 | 0.0%
| | Indore | 0 | 0.0%
| | Bangalore | 0 | 0.0%
| | | |
Change on January 23rd is with respect to January 16th 2009
Change is in INR per tonne
Patra
| Location | Change | %
| | Ludhiana | -1088 | -3.9%
| | Mandi | -453 | -1.7%
| | Delhi | 0 | 0.0%
| | | |
Change on January 23rd is with respect to January 16th 2009
Change is in INR per tonne
PLTS
GRA
8x1.5
| Location | Change | %
| | Chennai | -1000 | -3.3%
| | Mumbai | -453 | -1.7%
| | Kolkata | 0 | 0.0%
| | Delhi | 997 | 3.5%
| | Kanpur | -349 | -1.2%
| | | |
Change on January 23rd is with respect to January 16th 2009
Change is in INR per tonne
PLTS
GRB
12-20x2.5
| Location | Change | %
| | Chennai | -1000 | -3.2%
| | Mumbai | -453 | -1.3%
| | Raipur | 436 | 1.4%
| | Kolkata | 0 | 0.0%
| | Delhi | -906 | -3.0%
| | Kanpur | -697 | -2.3%
| | Ahmedabad | -1813 | -5.1%
| | Indore | -174 | -0.6%
| | Bangalore | -436 | -1.4%
| | | |
Change on January 23rd is with respect to January 16th 2009
Change is in INR per tonne
CR
DSK
0.63x1000
| Location | Change | %
| | Chennai | 0 | 0.0%
| | Mumbai | 0 | 0.0%
| | Pune | 0 | 0.0%
| | Kolkata | -436 | -1.2%
| | Delhi | 0 | 0.0%
| | Kanpur | -610 | -1.9%
| | Ahmedabad | 0 | 0.0%
| | | |
Change on January 23rd is with respect to January 16th 2009
Change is in INR per tonne
GC
100Gms
0.4
| Location | Change | %
| | Chennai | 0 | 0.0%
| | Mumbai | -436 | -1.2%
| | Kolkata | 0 | 0.0%
| | Delhi | 0 | 0.0%
| | Kanpur | -872 | -2.4%
| | Bangalore | 0 | 0.0%
| | | |
Change on January 23rd is with respect to January 16th 2009
Change is in INR per tonne
To keep tab on steel prices in India subscribe to services of www.steelprices-india.com by registering or sending a mail to admin@steelprices-india.com. Please note that this is a paid service.
(Sourced from www.steelprices-india.com)
JSW see revival of steel demand - 27 Jan 2009 BS reported that after witnessing a slump in demand in the October to December quarter that forced output cuts, some of the Indian steel majors feel that they are now on a revival mode.
The report said that some of them feel that although the price realization has not changed, rising demand will lead to better cash flows, helping them meet their working capital needs.
The report cited Mr Jayant Acharya president sales & marketing of JSW as saying that “The demand has improved due a downward movement in inventory levels, both at consumers and producers end. Once it picks up further, we expect some movement in prices too since huge price cuts were taken in the previous quarter. We have revived the blast furnace that was shut down in November and our production should go back to normal.”
Mr Acharya said that the imposition of 5% import duty on steel in November last year had given some relief to the domestic industry. He said that “While the duty was welcome, it remains insufficient and needs to be enhanced to 15% to prevent dumping.”
Mr Vinod Mittal vice CMD of Ispat Industries said that “The demand is improving since inventory levels are coming down due to production cuts. Now, mills can operate at 80% to 85% capacity provided there is no dumping of cheaper steel from abroad. We are currently operating at 60% capacity and should be able to increase it to 75% from March.”
(Sourced from Business Standard)
KIOCL posts net loss in Q3 - 27 Jan 2009 BL reported that KIOCL Ltd has loss of INR 79.7 crore for the quarter ended December 2008 compared to a net profit of INR 20 crore in the corresponding quarter of last fiscal. Its sales dropped by 70% to INR 95.8 crore during the quarter due to the continued recession resulting in steep fall in ore prices.
As per report, it expects to end the current financial year with a steep fall in its profit to INR 10 crore to INR 15 crore against an earlier projection of INR 250 crore to INR 300 crore.
For the 9 months ended December, KIOCL posted net profit of INR 15.76 crore on an income of INR 1,156.12.
(Sourced from Business Line)
Indian long products prices dip on weekend - 27 Jan 2009 Indian domestic prices of long products exhibited major decline last weekend at important locations across the country.
| Product | TMT | WRC | ANGL | CHNL | JSTI
| | Grade | Fe 415 | SWR14 | GR A | GR A | GR A
| | Size | 12mm | 5.5/6 | 65x6 | 75/100 | 250x125
| | Mumbai | -1377 | | -574 | -574 | -574
| | Mandi | -416 | | 0 | 0 | 416
| | Raipur | | -436 | -520 | -520 | -520
| | Kanpur | -500 | 0 | 0 | 0 | 0
| | Rudrapur | -500 | -349 | -400 | -500 | -700
| | Ahmedabad | 0 | | -688 | -688 | -208
| | | | | | |
Change is in per tonne on January 23rd as compared to January 22nd
To know exact steel prices in India subscribe to services of www.steelprices-india.com by registering or sending a mail to admin@steelprices-india.com. Please note that this is a paid service.
(Sourced from www.steelprices-india.com)
CAPEX cuts - Essar Steel Algoma pipe mill on hold - 27 Jan 2009 Soo Today reported that just 6 weeks after spending USD 50 million to re commission its No 6 Blast Furnace, Essar Steel Algoma had to shut the facility down. No 6 is just one of a number of initiatives Essar Steel has had to put on the back burner in recent months, due to a downturn in steel demand.
Mr Madhu Vuppuluri President of Essar Americas during a media conference last week said that “It is likely to get worse before it gets better. But, it will get better again. And when it does, Essar will be looking at Sault Ste. Marie as a possible location for a wide diameter pipe mill to serve the oil and gas sectors.”
He said that "Oil at this point in time is USD 33 a barrel. There is no incentive. There is no point in getting involved in this at this point in time. But at the end of the day there has to be a total integration."
He said that "There has to be secure inputs and there has to be a captive consumer. In India we have a complete downstream. We own the service centers."
Mr Vuppuluri said that a pipe mill in Sault Ste. Marie could use material from Essar Steel Algoma to manufacture pipes and reduce dependence on imports. He said that "Ultimately, the idea is that you should have a fairly high percentage of your consumption captively held downstream units. And one should have a fairly large control on the imports so that you are protected against any volatility in the market."
Mr Vuppuluri was also clear that a pipe mill could be part of Essar Steel's long term planning, but first the company needs to get through this long, deep downturn. He said that "We were very keen to have it in Sault Ste. Marie, but it should be remembered that it is a very competitive business. You cannot have the mental frame where we will do it whatever be the cost."
(Sourced from SooToday.com)
Gujarat could become auto hub in 3 to 5 years - Mr Modi - 27 Jan 2009 Zee News quoted Mr Narendra Modi CM of Gujarat as saying that after CEAT's INR 700 crore new radial tyre plant at Halol, Gujarat could become an auto hub in next 3 to 5 years.
Mr Modi said that apart from the presence of General Motors and Asia Motor works, foray of TATA Motors will make Gujarat a large volume player attracting good number of auto component manufacturers.
He said that Vadodara, Panchmahals, Dohad, Kaira, Bharuch, Narmada and Anand districts, having large percentage of tribal population are going to benefit most with huge investments likely to take place in these districts after successful fourth Vibrant Gujarat Global Investors Summit that would attract an investment of more than INR 12 million.
He added that investments will also take place in 1,600 kilometer long coastal areas of the state. The recession and economic meltdown has benefited the state as it has learnt the way how to fight it and meet the challenges.
Official sources said that the big-ticket investors in auto and engineering sector are Ruchi group, Larsen and Toubro, Jindal group, Welspun and Austral group. Ruia group will come up with wagons and coach manufacturing facility and aero tyre manufacturing at Dholra.
They said that Rolex Rings Ltd has committed an investment of INR 1,000 crore for auto component manufacturing and components for bearing industry at Rajkot.
(Sourced from zeenews.com)
RPG earmarks INR 20,000 crore for expansion - 27 Jan 2009 BS reported that unfazed by the economic slowdown, the Mr Harsh Goenka led RPG Group has earmarked an investment of INR 15,000 crore to INR 20,000 crore for expansion over 3 years.
Mr Harsh Goenka chairman of RPG Enterprises said that "We will be investing around INR 15,000 crore to INR 20,000 crore over 3 years. The investment would be basically to consolidate on our existing verticals, primarily in power, tyre, biotechnology and retail. These investments will come at a time when other companies have been hit by slowdown. We are one of the few companies who are serious about our investment plans.
He was speaking at the foundation stone laying ceremony of CEAT's Greenfield radial tyre plant at Halol near Vadodara. CEAT is the group's flagship company in the tyres vertical.
As per report, the INR 13,500 crore RPG Enterprises is setting up a power cable and accessories plant in Gujarat for which the group has been scouting for land. It has also planned to set up a carbon black unit, along with a captive power plant at Mundra, at an investment of INR 350 crore.
Mr Goenka said that "More than 50% of the investment will focus on the power verticals such as transmission, cables and accessories, followed by tyre, carbon black, retail and biotechnology." The group is also expanding the operations of RPG Lifesciences at its Ankleshwar plant. He said that we are focusing a lot on research and development of biotechnology, oncology and anti cancerous drugs."
(Sourced from Business Standard)
Directory of Machine Tool Manufactures in India - 27 Jan 2009 Published in August 2008, 'Directory of Machine Tool Manufactures in India’ has been comprehensively researched and prepared, to bring you a fully up to date guide to India's machine tool manufactures. This report will enable you to build new business prospects, generate new customers, discover who your competitors are and make vital contacts. You would save the time, money and effort of doing your own research. This directory has been especially compiled to assist with market research, strategic planning, as well as contacting prospective clients or suppliers.
The list contains more than 389 names of various large and small manufacturers along with the contact details from all over India. It gives the basic information like address and contact details etc only. This directory, formatted on alphabetical order, could become the starting point for various people interested in getting connected with this industry in some way....
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Content:
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• Company name -389 entries
• Address-389 entries
• Phone number-387 entries
• Fax number -384 entries
• Mob - 12 entries
• Email -381 entries
• Company url - 311
Format: PDF File
Total no of pages - 218
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Downsizing deals - Corus may cut 1,000 jobs in Netherlands - 27 Jan 2009 Financial Times reported that TATA Steel's Corus Plc is planning a major revamp at Ijmuiden steel plant in the Netherlands, which could lead to nearly 1,000 workers losing their jobs due to decline in sales in the global steel industry, caused by the current economic slowdown.
The Federation of Dutch Unions, the FNV said that the steelmaker in reorganizing its operation in the Netherlands may axe nearly 1,000 workers out of the 9,500 at Ijmuiden as the company hopes to save nearly EUR 250 million.
The Corus union said that it is not aware when and where the redundancies will take place but it assumes that many workers have nearly reached retirement age and they may be asked to leave among others.
According to the union, Corus has not responded to the FNV claims as it said that the plans have yet not been finalized. Out of a total workforce of 9,500 at Ijmuiden, the 1,000 job cuts amounts to more than 10% of its workforce and the union said that the number of job cut is extremely large.
Early last month, the company asked the Netherlands government for financial help from its EUR 6 billion economic bailout fund to help cut down on the work hours of nearly 4,600 employees, due to decline in sales in the global steel industry, caused by the current economic slowdown.
The Dutch government has quoted a EUR 6 billion economic stimulus package or 1% of its GDP, to help the country cope with the global financial crisis. The government said that it would fund shorter working hours for companies whose sales have declined by 30% since the past 2 months, through this package.
Under the scheme, Corus employees in the Netherlands will be paid 70% of their wage as unemployment benefits by the Dutch government and Corus would pay the remaining 30% over a period of 6 weeks.
According to the Financial Times, 3 unions representing Corus's 25,000 steelworkers had discussed the idea of voluntarily opting for the pay cut after having earlier agreed to lower overtime and bonuses.
(Sourced from The Financial Times)
TATAs expand partnership with New Millennium - 27 Jan 2009 BS reported that TATA Steel plans to become a partner in Canada based New Millennium Capital Corp’s USD 4 billion KeMag property, having iron ore reserves in excess of two billion tonnes.
A TATA Steel spokesperson said that it would engage in the KeMag property in due course as the pre-feasibility study has just been completed. However, for TATA Steel Global Mineral Holdings, an indirect wholly owned subsidiary of TATA Steel, which picked up a 19.9% stake in New Millennium, a bankable feasibility study on the direct shipping ore project is a priority. The TATA Steel New Millennium deal forged last year has 3 components.
First, TATA Steel would become New Millennium’s largest shareholder with a 19.9% stake.
Second, on completion of a feasibility study by New Millennium for its DSO project, the Indian steel major would have 180 days to acquire an 80% interest in the project. It would furthermore invest up to a total of USD 300 million in the project to start production. TATA Steel has committed to purchase 100% of DSO’s ore production at the prevailing world prices during the life of the mine.
Third, the Indian major has an exclusive right to negotiate a proposed transaction in respect of the LabMag project until June this year. The LabMag project has indicated reserves of 3.6 billion tonne.
The KeMag project was not part of the deal with New Millennium. A TATA spokesperson said that “Our immediate priority is to ensure that the DSO feasibility study is completed as soon as possible and the production starts at the earliest.”
According to the pre-feasibility study, the KeMag project will have an initial capital cost of USD 3.8 billion and a working capital need of USD 26.4 million. The net present value of the project, before corporate and mining taxes, is USD 7.3 billion.
The next stage for the KeMag project is to initiate a feasibility study, which if successful would lead to project financing in 2011 and a production start by 2014.
However, New Millennium is TATA Steel’s third overseas iron ore venture. It has a JV with Sodemi, a government owned mineral development company in Africa and a Greenfield steel project in Vietnam, linked to iron ore deposits. Also, TATA Steel is in the running for a USD 1.6 billion iron ore project in Liberia.
TATA Steel, with a 28 million tonne capacity has set a target of 40% raw material security over the next 3 to 5 years. The group meets all its iron ore requirements for its domestic operations from its own mines. Currently, the group, which includes Corus and other foreign acquisitions, has a raw material security of 22 per cent only.
(Sourced from Business Standard)
Slowdown signs - Container shipping rates sink to new lows - 27 Jan 2009 It is reported that the cost of shipping goods from Asia to Europe looks set to plummet further in 2009 as export demand for goods produced in the region continues to fall.
A source at a major Indonesian shipping concern told Procurement Leaders said that "In 2008, average rates from South East Asia to Europe for a 20ft container were around USD 1,500 plus surcharges. Today, its approximately USD 500."
According to recent data, export rates have declined hugely throughout Asia, with YoY figures suggesting that exports from Korea will be 30% down in January 2009 a similar figure to the 27% recorded in Japan but dwarfed by the 42% drop in exports from Taiwan.
According to statement earlier this month, container volumes from Asia to the US fell by around 7% throughout 2008 a massive drop on the 15 year growth average of around 8%. This, in part, has been down to the strengthening of the US dollar, but it has also coincided with the biggest drop in consumer demand since the 1930's. The cost impact for those procurement operations in both the US and Europe leaning heavily on Asia has been huge.
The Baltic Dry Index, which measures freight rates for bulk commodities, fell a staggering 96% in the final quarter of 2008, a further indication of the tumultuous conditions in the container shipping industry.
Analysis of rebar market in UAE - 27 Jan 2009 One of the most important segments of UAE is construction, which in turn decided the economic mood of the country and fate of millions of people connected with this sector.
Rebar is one of the main inputs in construction and during the boom time, ie in the month of July 2008, its prices reached unimaginable levels of AED 5750 per tonne (USD 1575). These levels continued till August beginning as the aftermath of global meltdown, specially in the FOB price levels at Black sea as there is a time lag in International and domestic prices.
Rebar prices in UAE touched the nadir of AED 1900 per tonne in early November down by 67% as compared to peak levels in July 2008, which was followed by recovery starting on November 11th 2008, which lasted till January 7th 2009. In other words rebar prices strengthened by AED 250 per tonne or 13% during November 2nd 2008 and January 6th 2009.
The price movement of rebar in UAE during this period is detailed below
| Date | Rate | Change
| | 1-Jul | 5750 |
| | 4-Aug | 5400 | -6.1%
| | 10-Aug | 5300 | -1.9%
| | 17-Aug | 5200 | -1.9%
| | 24-Aug | 4900 | -5.8%
| | 1-Sep | 4500 | -8.2%
| | 15-Sep | 4200 | -6.7%
| | 21-Sep | 3800 | -9.5%
| | 23-Sep | 3300 | -13.2%
| | 2-Oct | 3000 | -9.1%
| | 12-Oct | 2900 | -3.3%
| | 19-Oct | 2500 | -13.8%
| | 26-Oct | 2300 | -8.0%
| | 2-Nov | 1900 | -17.4%
| | 11-Nov | 1950 | 2.6%
| | 13-Nov | 2050 | 5.1%
| | 23-Nov | 2100 | 2.4%
| | 28-Dec | 2150 | 2.4%
| | 7-Jan | 1900 | -11.6%
| | | |
Rate in AED per tonne
(Source – www.steelprices-middleeast.com)
The lowest levels of the import bookings had touched USD 400 per tonne on CFR Dubai levels for the November shipments .this brought the sentiment down and the stockist sitting on heavy inventory started selling in a panic situation. As the import price of USD 400 per tonne CFR was too low for the mills and the effect of the increase in scrap started the mills to conclude the order s at USD 450 per tonne to USD 470 per tonne CFR Dubai in late November. This hike in the price of imports created a positive impact the local price levels firmed up again at AED 2100 per tonne to AED 2200 per tonne for retail sales in small quantities. But where substantial quantity was sold by the stockiest, it was still at the levels of AED 1700 per tonne to AED 1850 per tonne on cash basis. This was more of distressed sale on cash to liquidate the position taken by them.
The prices till date could rise because somebody comes out with the inventory where in they need cash so making this market very difficult for the time being for any firm prediction.
The latest slide in the first week of January 2009 happened as some of the sellers holding inventory came back to the market to cash the positions as soon they saw the small increase in prices.
The outlook for rebars in UAE now depends on the following factors
1. Progress of various projects
2. The unknown inventory is making this market shaky.
Even if projects keep on going even at reduced pace, there will be rebar demand but as of now majority of it will be met by the domestic producers
On overall it is expected that as of now the bottom has come and the rebars will play with in the band of AED 1900 per tonne to AED 2150 per tonne depending on the various factors and sentiments.
To keep tab on steel prices subscribe to services of www.steelprices-middleeast.com by registering or sending a mail to admin@steelprices-middleeast.com. Please note that this is a paid service.
(Sourced from www.steelprices-middleeast.com)
EU imposes tariffs of up to 85% on Chinese screws and bolts - 27 Jan 2009 Bloomberg reported that the European Union imposed tariffs as high as 85%t on Chinese screws and bolts in a case that may prompt China to complain to the World Trade Organization.
The duties range from 26.5% to 85%, depending on the Chinese company. The Chinese subsidiaries of two EU producers Italy’s A. Agrati SpA and Spain’s Celo SA are exempted from the levies.
EU said that “The imposition of measures is expected to prevent further distortions and restore fair competition.”
The duties, which stem from an inquiry opened in November 2007, will take effect after publication in the EU Official Journal by February 9th.
According to the report, the five year duties apply to EU imports of iron or steel fasteners worth about EUR 575 million in 2007.
According to the bloc Chinese fastener manufacturers increased their share of the EU market to 26% in the 12 months through September 2007 from 17% in 2004. EU producers suffered a fall in their combined home-market share to 17% from 22% in the same period, when consumption expanded by almost a third.
China accounts for 60% of EU imports of the fasteners, which also come from Taiwan, the US and Japan.
A lawyer for Chinese producers including Gem-Year Industrial Co said in November that China would probably file a WTO complaint against any anti-dumping duties because the European industry hasn’t suffered sufficient harm to justify the trade protection an allegation the EU rejected.
(Sourced from Bloomberg)
Monday Market Monitor - CIS (WEEK 4) - Downward trend - 27 Jan 2009 Black Sea FOB prices dipped marginally by USD 5 per tonne to USD 15 per tonne during the last week except for plates
Although the decrease is marginal, the downward trend reflects huge selling pressure on the Ukrainian and Russian steel mills and traders with positions.
As global demand is not picking up and their domestic demand is highly subdued, it is likely that FOB Black Sea prices would remain under pressure at least in short term despite low production levels.
If the downward trend continues, it would put pressure on domestic price levels in most the countries due to the threat of cheaper imports.
| Item | Grade | Size | Change
| | Billets | 3-5 sp/ps | 125-150 mm | -15
| | Rebars | A300C-A500C | 12-32 mm | -5
| | Wire rod | Mesh | 5.5-6.5 mm | -5
| | HRC | ST1-ST3 kp/sp/ps | 2-8 mm | -10
| | HRC | ST1-ST3 kp/sp/ps (Rus) | 2-8 mm | -5
| | Plates | A36 | 8-30 mm | 0
| | CRC | 08 kp (Ukrainian origin) | 0.5-1.5 mm | -5
| | CRC | Russian origin | 0.5-1.5 mm | -10
| | | | |
Change is on January 23rd with respect to prices on January 16th
Change is in USD per tonne
Delivery FOB Black Sea
To know prevailing steel prices at Black Sea, subscribe to services of www.steelprices-india.com by registering or sending a mail to admin@steelprices-india.com. Please note that this is a paid service.
(Sourced from www.steelprices-india.com)
SDI reports Q4 loss but record 2008 results - 27 Jan 2009 Steel Dynamics Inc announced another strong year of growth, achieving record full year 2008 results despite weak fourth quarter sales and shipments and fourth-quarter losses from unrealized hedging losses and inventory write downs.
For the fourth quarter, the company incurred a net loss of USD 83 million as compared to net income of USD 193 million in the third quarter of 2008 and to net income of USD 98 million in the fourth quarter of 2007.
Its net sales for the year grew to a record USD 8.1 billion, an increase of 84% YoY as compared to net sales of USD 4.4 billion in 2007. The increase in sales for 2008 resulted primarily from the acquisition of OmniSource Corporation in October 2007 and from additional metals recycling operations in mid-2008, plus significantly higher average selling prices for steel and recycled metals during 2008.
Its net Income for 2008 was a record USD 463 million up by 17% YoY as compared to USD 395 million in 2007.
Mr Keith Busse chairman & CEO of SDI said that "It is strange to be reporting the best year in the company's history and at the same time the company's worst quarter. The steel industry took it on the chin in the fourth quarter as orders dried up and Steel Dynamics was not exempted. The combination of weaker demand, inventory reductions in both distribution and at the OEM level, and the commercial paralysis brought about by tight credit markets led to very slow order activity. This resulted in fourth-quarter production curtailments at our mills and metals-recycling facilities. We have started the new year with somewhat better activity, but we cannot be certain how long it will take the steel and scrap markets to return to more normal demand patterns. All of our SDI facilities are currently operating well below capacity. However, the company is prepared to ramp up very quickly with any pick-up in business activity.”
He added that "We believe that SDI is well positioned with our low, variable cost structure and state of the art facilities that are capable of cost-effectively producing excellent, high quality products. We are optimistic that, even if we continue to encounter lackluster demand for steel and scrap for several quarters, we will return to profitability in the first quarter and remain profitable in 2009, assuming no recurrence of dramatic price swings such as those experienced in the second half of 2008.”
Dominic cyclone hits iron ore operations of Rio - 27 Jan 2009 It is reported that tropical Cyclone Dominic, approaching Australia’s northwest region is bringing gales and damaging waves, forcing Rio Tinto Group to halt iron ore exports and BHP Billiton Ltd. to close the Griffin oil field.
Ms Leith Paganoni a spokeswoman of Rio said that Rio sent six iron ore carriers out to sea for safety yesterday, stopped iron ore loading and will stop ore trains today. BHP also sent its Griffin Venture floating oil and gas platform away from the oil field and out of the cyclone’s expected path.
Rio on Tuesday said that it expects to resume iron ore loading operations in west Australia's Port Dampier on Wednesday following the passing of a cyclone.
The nation’s Bureau of Meteorology said that Tropical Cyclone Dominic, currently a category one system, may bring wind gusts of as much as 120 kilometers (75 miles) an hour and very rough seas. It could strengthen to a category two event by tomorrow. Five is the most severe rating.
The agency said that the region hosts most of Australia’s oil and gas and iron ore production and was expected to face more tropical cyclones than average this season, according to an October forecast by the bureau. The region may experience five to seven cyclones from November through April, up from four last year.
(Sourced from Bloomberg.net)
Production pruning - US weekly raw steel production dips by 52.5% YoY - 27 Jan 2009 American Iron & Steel Industries reported that in the week ending January 24th 2009, US's raw steel production was 1.025 million tons while the capability utilization rate was 43.1%. Production was 2.154 million tons in the week ending January 24th 2008, while the capability utilization then was 90.3%. The current week production represents a 52.5% YoY decrease from the same period in 2008.
Production for the week ending January 24th 2009 is down by 2.0%% WoW from the previous week ending January 17th 2009 when production was 1.045 million tons and the rate of capability utilization was 43.8%.
Adjusted year to date production through January 24th 2009 was 3.504 million tons, at a capability utilization rate of 42.7%. That is a 52.6% decrease from the 7.383 million tonnes during the same period last year, when the capability utilization rate was 90.3%.
District wise production for the week ending January 24th 2009
1. Northeast Coast: 88
2. Pittsburgh/Youngstown: 71
3. Lake Erie: 23
4. Detroit: 24
5. Indiana/Chicago: 309
6. Midwest: 104
7. Southern: 368
8. Western: 41
(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.
(Sourced from AISI)
Vale, Mitsui and Peabody interested in Mongolian coal deposit - 27 Jan 2009 Bloomberg reported that Vale do Rio Doce, Peabody Energy Corporation and Mitsui & Company are among companies interested in buying part of a USD 2 billion Mongolian metallurgical coal deposit.
The Business Council of Mongolia said that the government may hire JPMorgan Chase & Company and Citigroup Inc to find a global mining giant to buy as much as 49% of the Tavan Tolgoi deposit, near the country’s border with China. Itochu Corporation, China Shenhua Energy Company, Jindal Steel & Power Limited and Sojitz Corporation have also expressed interest.
The report also added that BHP Billiton Limited was also listed as a potential purchaser.
Global mining companies including Rio Tinto Group have been trying for years to secure rights to deposits in Mongolia as lawmakers tried to find a compromise between using the country’s mineral wealth to alleviate poverty and trying to attract additional foreign mining investment.
A spokeswoman at Vale’s Rio de Janeiro headquarters said the company doesn’t comment on market rumors. Ms Beth Sutton spokeswoman of Peabody said she couldn’t immediately comment.
Tavan Tolgoi which contains 6.5 billion tonnes of metallurgical coal used in steelmaking, may be the world’s biggest untapped deposit of its kind. The deposit is in the Gobi desert, within 150 kilometers of Mongolia’s border with China. As per the Council, a group of 11 Korean companies and a group of 3 Russian companies also have submitted proposals to buy Tavan Tolgoi.
(Sourced from Bloomberg)
Kremikovtzi talks enter final stage - Report - 27 Jan 2009 Ms Nina Radeva deputy economy minister of Bulgaria said that Ukrainian company Smart Group and the Bulgarian government have reached agreement in principle on its commitments if it is picked the new owner of Bulgaria’s debt ridden steel mill Kremikovtzi.
The details will be included in a special memorandum to kick off a rescue plant for the plant. In the final stage of the negotiations, the Ukrainian company will meet with creditors. Sources familiar with the matter said the state is unlikely to approve any action without securing the nod of bondholders.
Brazil’s mining giant CSN, which did not arrive for talks with the economy ministry last week, is also in the race agreeing details with bondholders.
Last week it emerged that a court sitting on an appeal on a claim against Kremikovtzi for repayment of a BGL 698 million state aid package, which placed the government on top of the creditors’ list with 35% of total debts. If the claim is rejected, the government’s share will shrink to almost 18% while bondholders will emerge on top with 43% and will play the lead role at the creditors' meeting.
Kremikovtzi’s bonds trade on the UTC market at seven to 10% of face value.
(Sourced from www.sofiaecho.com)
China coke export to different countries in 2008 - 27 Jan 2009 It is reported that China coke export to different countries during January to December total 12,126,303.62 tonnes with Brazil top at 2,398,359.15 tonnes
| Country | Dec'08 | 2008 | Share
| | Total | 222,358 | 12,126,304 |
| | Brazil | 43,118 | 2,398,359 | 19.8%
| | Japan | 34,930 | 2,010,290 | 16.6%
| | US | 1,339 | 2,006,636 | 16.5%
| | India | 9,561 | 1,057,569 | 8.7%
| | France | 0 | 595,632 | 4.9%
| | South Korea | 6,979 | 490,046 | 4.0%
| | Pakistan | 2,800 | 441,685 | 3.6%
| | Belgium | 0 | 432,666 | 3.6%
| | Holland | 2,066 | 324,504 | 2.7%
| | Taiwan Region | 0 | 320,515 | 2.6%
| | South Africa | 64,407 | 318,618 | 2.6%
| | Turkey | 0 | 274,214 | 2.3%
| | Italy | 0 | 257,789 | 2.1%
| | Kazakhstan | 2,860 | 243,011 | 2.0%
| | Canada | 0 | 191,966 | 1.6%
| | Iran | 28,819 | 187,367 | 1.5%
| | Germany | 0 | 110,203 | 0.9%
| | Argentina | 0 | 109,032 | 0.9%
| | Others | 25,477 | 356,202 | 2.9%
| | | | |
(In tonnes)
(Sourced from www.Mysteel.net)
Visit www.Mysteel.net for real time access to China steel news!
Gerdau SA net profit in 9 months up by 38% YoY - 27 Jan 2009 Gerdau SA saw its profits increase by 38% YoY to USD 2.19 billion for the first nine months of 2008. Revenues jumped 44.1%, with an even higher percentage for its Brazilian operations. Sale also increased by 21.7% and it’s investing in more production.
For three straight quarters, Gerdau has increased both revenue and EBITA by at least 20%.
| Quarter | Revenues | EBITA
| | Q1 2008 | 21.9% | 30.4%
| | Q2 2008 | 47.2% | 72.0%
| | Q3 2008 | 62.4% | 153.7%
| | | |
Mr Andre Gerdau Johannpeter CEO of Gerdau said that "We have the flexibility and all necessary conditions to adjust to adversities in the current world economy."
(Sourced from www.bnamericas.com)
Production pruning - ArcelorMittal Temirtau to limit output in 2009 - 27 Jan 2009 Reuters reported that steel giant ArcelorMittal plans to cut liquid steel output at its Kazakh unit to 3.167 million tonnes this year from 3.431 million tonnes in 2008.
The company said in a statement that rolled liquid steel output is expected to decline to 3.029 million tonnes from 3.133 million tonnes last year.
The statement quoted Mr Frank Pannier CEO of ArcelorMittal Temirtau as saying that "The market situation is difficult. There are no orders from Kazakhstan at the moment and very few orders from Russia."
The company said that its capital expenditures would be USD 176 million this year, down from USD 283 million last year.
(Sourced from Reuters)
Downsizing deals - Acerinox may go for temporary lay offs - 27 Jan 2009 Reuters reported that Spain's stainless steel major Acerinox might temporarily lay off workers at its Spanish factory if demand for its stainless steel did not pick up in the next 2 weeks.
A spokesman of Acerinox said that "We are at a very early point in the process, the next two weeks are key. If the situation continues for longer, we will do something, and that something could be a temporary layoff for between 6 and 9 months."
It may be noted that Acerinox halted production at its Algeciras plant for 12 days over New Year, the first shutdown caused by demand weakness since the 1 million tonne a year factory opened in 1973. Demand and production fell in the fourth quarter in line with steel and stainless steel producers all over the world, who are cutting jobs and output.
Acerinox also closed its South African factory for 12 days over the New Year, but the spokesman said the company had no plans, as yet, for shutdowns outside Europe. He said that "At the moment, as far as I know, there is no concrete plan for either South Africa or the United States. That's the situation at the moment, but anything could be put on the table right now."
Acerinox is the world's second biggest producer of stainless steel, with output of 3.1 million tonnes a year.
(Sourced from www.reuters.com)
Chinese power giants insist on CNY 50 cut for coal price - 27 Jan 2009 China Mining reported that China's five power giants still insist CNY 50 cut for coal contracted price despite of the coal supply crisis, disclosed a person in charge in a power group.
According to the report, recently, Beijing Huaneng Thermal Power Plant under Huaneng Group suffered power coal shortage since Shenhua Group stopped to provide coal to the plant. The coal supply was resumed later with the intervention of the National Development and Reform Commission.
The power coal supply shortage did not only occur to Beijing Huaneng thermal power plant, but also to some power plants in Northeast China.
The stalemate between power and coal enterprises probably will last for a long time on the expectation of downward economic trend in China. Earlier, it is believed that the 5 power giants might give in to the quotation of coal enterprises offered. However, the 5 power giants say that they can stop production if they run out of coal, because they are facing the difficulties of selling electricity out.
(Sourced from China Mining)
Monday Market Monitor - MEA (WEEK 4) - Rebars firm up - 27 Jan 2009 The MEASPI strengthened by 33 points in the last week, driven by firming up of rebar prices in some of the locations in MEA., which drove MLPPI up by 47 points.
| Class | 15-Jan | 22-Jan | Change
| | MLPPI | 4151 | 4198 | 47
| | MFPPI | 6537 | 6537 | 0
| | MEDSPI | 4874 | 4907 | 33
| | | | |
MLPPI – Middle East Long Product Price Index
MFPPI – Middle East Flat Product Price Index
MEASPI – Middle East Steel Price Index
Long products
| Category | 15-Jan | 22-Jan | Change
| | PI – Rebar | 3502 | 3617 | 115
| | PI - WRC | 4126 | 4126 | 0
| | PI - Angle | 5140 | 5140 | 0
| | PI – Structural | 5389 | 5389 | 0
| | PI – HEA | 6427 | 6427 | 0
| | | | |
Flat products
| Category | 15-Jan | 22-Jan | Change
| | PI - Narrow Plates | 6318 | 6318 | 0
| | PI - Wide Plates | 8413 | 8413 | 0
| | PI - Hot Rolled | 5414 | 5414 | 0
| | PI - Cold Rolled | 6087 | 6087 | 0
| | PI - Galvanized | 6264 | 6264 | 0
| | | | |
To know more about these indices please visit
http://steelprices-middleeast.com/spi_services/spi.html
Rebars
BS4449 Grade 460B
| Location | CUR | Change | USD | %
| | Dubai | AED | 50 | 14 | 2.6%
| | Dammam | SAR | 80 | 21 | 4.0%
| | Bahrain | BDR | 0 | 0 | 0.0%
| | Kuwait | KDW | 0 | 0 | 0.0%
| | Qatar | QAR | 0 | 0 | 0.0%
| | Jeddah | SAR | 80 | 21 | 4.0%
| | | | | |
Change is on January 22nd with respect to prices on January 15th
Change is per tonne
The market firmed up in the last week for rebars backed by demand from construction segment, but this going to be met by domestic manufacturers rather than import for the time being.
It is very difficult to predict any definite revival since ghost of piled up inventory from previous imports at high prices is haunting the market and suppliers with cash offer at much lower levels pop up.
It is worth mentioning that such a phenomenon has happened off and on in the past the last being in November 2008 when the import offers peaked at USD 450 per tonne to USD 470 per tonne on CFR Dubai pushed by hike in scrap prices but soon fizzled out, countered by cash sales by stockiest with slow moving inventory.
To keep tab on steel prices subscribe to services of www.steelprices-middleeast.com by registering or sending a mail to admin@steelprices-middleeast.com. Please note that this is a paid service.
(Sourced from www.steelprices-middleeast.com)
Slowdown signs - Nissan global car sales slump to 7 year low - 27 Jan 2009 Reuters reported that global car sales could take more than 7 years to return to their 2007 levels of 69 million vehicles.
Mr Carlos Ghosn, CEO of Nissan Motors Company, in an economy conference in Saudi Arabia said that "It may take more than 7 years to come back to 2007 level. If it was only about recession it would be a minor problem because we are cyclical industry." He noted that the credit crunch and foreign exchange volatility has worsened the impact of the recession.
Mr Ghosn further said that global car makers are likely to see a consolidation in the sector as a decline in sales is expected to accelerate in 2009 to around 55 million cars from 63 million sold in 2008. He noted that "Car sales in 2007 was 69 million, in 2008 they were at 63 million. In 2009, we can go to 55 million cars. Over the past few weeks the trend points to 55 million."
He also said without being more specific that "There is absolutely no doubt that we will see a consolidation. Two thirds of cars sold in the world are based on personal finance. We are the first victim of the global financial meltdown."
(Sourced from Reuters)
Slowdown signs - Mining industry suppliers feel pinch - 27 Jan 2009 ABC News reported that the downturn in the mining industry is beginning to felt by companies which supply the sector.
The CQMS Castings foundry at Maryborough makes steel castings used to manufacture mining equipment. Thirty of its 200 workers were made redundant recently.
Mr Max Voigt General manager said the workers who were laid off had been with the company for fewer than two years. He said that year ahead is uncertain, the company believes the mining industry has a positive medium to long term future, and there should eventually be jobs growth at the foundry.
Mr Voigt said the foundry's workforce is still four times larger than it was six years ago.
(Sourced from ABC News)
Production pruning - ArcelorMittal Tubarao to run at 65% - 27 Jan 2009 BNamericas reported that ArcelorMittal's Tubarão steel mill in Brazil will likely continue producing at roughly 65% of its 7.5 million tonnes per annum capacity for the rest of 2009, with 1 blast furnace stopped and the remaining 2 running at diminished levels.
It may be noted that ArcelorMittal stopped the furnace in November 2008 due to low demand. A company source said that it will return to full capacity once market conditions improve.
Meanwhile, ArcelorMittal's long steel division in Minas Gerais state has resumed activities after having taken a year end break.
(Sourced from www.bnamericas.com)
CAPEX cuts - BHPB withdraws bid for Tavan Togloi - 27 Jan 2009 The Mongolia news media is reporting that BHP Billiton has withdrawn its bid to mine the massive Tavan Tolgoi coking coal deposit.
The agreement that was being negotiated would have given BHP 49% of the coal mine as the Government of Mongolia would retain 51% ownership.
Tavan Tolgoi is considered the world's largest undeveloped coking coal deposit with a reserve of 6.5 billion tonnes of high grade coking and thermal coal. BHP originally secured the right to develop the deposit in the 1990s, but determined it was not economic at the time and returned the license to the Mongolian Government.
The financially strapped Mongolian Government is facing a budget deficit this year, partly due to declining copper prices and cutbacks in mining exploration.
(Sourced from mineweb.co.za)
Update on Vale nickel output in 2008 - 27 Jan 2009 Vale finished nickel production reached an all time high in 2008, at 275,400 tonne rising 11.1% relatively to 2007. This performance highlights the ongoing improvement in asset performance, a consequence of our efforts to upgrade existing facilities.
The volume produced in 4Q of 2008 is 73,200 tonne increased by 1.1% compared to Q3 of 2008, as Sudbury showed a strong increase in production in Q4 of 2008.
| | Q4 '07 | Q4 '08 | Change | 2007 | 2008 | Change
| | Nickel | 69.0 | 73.2 | 6.1% | 247.9 | 275.4 | 11.1%
| | Sudbury | 16.9 | 28.8 | 71.1% | 70.7 | 85.3 | 20.6%
| | Thompson | 8.4 | 7.5 | -10.4% | 29.8 | 28.9 | -3.2%
| | Voisey's Bay | 20.5 | 19.2 | -6.3% | 58.9 | 77.5 | 31.6%
| | Sorowako | 20.6 | 14.5 | -29.2% | 75.8 | 68.3 | -9.9%
| | Others | 2.7 | 3.1 | 14.5% | 12.7 | 15.4 | 21.0%
| | | | | | | |
(In ‘000 tonnes)
Monday Market Monitor - China (WEEK 4) - Stable - 27 Jan 2009 Chinese domestic prices remained unchanged in general showing absence of positive sentiments in the short term. HR prices improved slightly but without any clear cut signal of continued correction.
WRC
6.5mm
Common
| Location | CNY | USD | %
| | Shanghai | 0 | 0 | 0.0%
| | Hangzhou | 0 | 0 | 0.0%
| | Nanjing | 0 | 0 | 0.0%
| | Hefei | 0 | 0 | 0.0%
| | Changsha | 70 | 10 | 1.9%
| | Zhengzhou | 0 | 0 | 0.0%
| | Chengdu | 100 | 15 | 2.5%
| | Guiyang | 50 | 7 | 1.3%
| | Kunming | 0 | 0 | 0.0%
| | Lanzhou | 20 | 3 | 0.5%
| | Urumchi | 0 | 0 | 0.0%
| | | | |
Change on January 23rd is with respect to prices on January 16th
Change is per tonne
Rebar
20mm
HRB 400
| Location | CNY | USD | %
| | Shanghai | 0 | 0 | 0.0%
| | Hangzhou | 0 | 0 | 0.0%
| | Nanjing | 100 | 15 | 2.5%
| | Jinan | 0 | 0 | 0.0%
| | Hefei | 0 | 0 | 0.0%
| | Fuzhou | 20 | 3 | 0.5%
| | Nanchang | 60 | 9 | 1.5%
| | Guangzhou | 0 | 0 | 0.0%
| | Changsha | 0 | 0 | 0.0%
| | Wuhan | 0 | 0 | 0.0%
| | Zhengzhou | 0 | 0 | 0.0%
| | Beijing | 40 | 6 | 1.0%
| | Tianjin | 50 | 7 | 1.3%
| | Shijiazhuang | 0 | 0 | 0.0%
| | Taiyuan | 40 | 6 | 1.0%
| | Shenyang | 20 | 3 | 0.5%
| | Harbin | 0 | 0 | 0.0%
| | Chongqing | 100 | 15 | 2.4%
| | Chengdu | 100 | 15 | 2.3%
| | Guiyang | 50 | 7 | 1.2%
| | Kunming | 0 | 0 | 0.0%
| | Xian | 0 | 0 | 0.0%
| | Lanzhou | 0 | 0 | 0.0%
| | Urumchi | 0 | 0 | 0.0%
| | | | |
Change on January 23rd is with respect to prices on January 16th
Change is per tonne
HRC
4.75mm
Common
| Location | CNY | USD | %
| | Shanghai | 60 | 9 | 1.5%
| | Hangzhou | 90 | 13 | 2.3%
| | Nanjing | 80 | 12 | 2.0%
| | Jinan | 130 | 19 | 3.3%
| | Hefei | 0 | 0 | 0.0%
| | Fuzhou | 50 | 7 | 1.3%
| | Nanchang | 0 | 0 | 0.0%
| | Guangzhou | 80 | 12 | 2.0%
| | Changsha | 150 | 22 | 3.6%
| | Wuhan | 100 | 15 | 2.5%
| | Zhengzhou | 50 | 7 | 1.3%
| | Beijing | 150 | 22 | 3.8%
| | Tianjin | 170 | 25 | 4.3%
| | Shijiazhuang | 100 | 15 | 2.5%
| | Taiyuan | 120 | 18 | 3.0%
| | Shenyang | 110 | 16 | 2.9%
| | Harbin | 100 | 15 | 2.6%
| | Chongqing | 50 | 7 | 1.2%
| | Chengdu | 0 | 0 | 0.0%
| | Kunming | 0 | 0 | 0.0%
| | Xian | 100 | 15 | 2.5%
| | Lanzhou | 50 | 7 | 1.3%
| | Urumchi | 0 | 0 | 0.0%
| | | | |
Change on January 23rd is with respect to prices on January 16th
Change is per tonne
Plates
20mm
Common
| Location | CNY | USD | %
| | Shanghai | 0 | 0 | 0.0%
| | Hangzhou | 0 | 0 | 0.0%
| | Nanjing | 100 | 15 | 2.5%
| | Jinan | 0 | 0 | 0.0%
| | Hefei | 0 | 0 | 0.0%
| | Fuzhou | 0 | 0 | 0.0%
| | Nanchang | 0 | 0 | 0.0%
| | Guangzhou | 0 | 0 | 0.0%
| | Changsha | 50 | 7 | 1.3%
| | Wuhan | 100 | 15 | 2.5%
| | Zhengzhou | 150 | 22 | 3.9%
| | Beijing | 100 | 15 | 2.6%
| | Tianjin | -30 | -4 | -0.8%
| | Taiyuan | 20 | 3 | 0.5%
| | Shenyang | -50 | -7 | -1.3%
| | Harbin | 50 | 7 | 1.3%
| | Chongqing | -250 | -37 | -6.5%
| | Chengdu | 120 | 18 | 2.9%
| | Kunming | 30 | 4 | 0.7%
| | Xian | 250 | 37 | 6.3%
| | Lanzhou | -30 | -4 | -0.8%
| | Urumchi | 150 | 22 | 3.9%
| | | | |
Change on January 23rd is with respect to prices on January 16th
Change is per tonne
CR
1.0mm
Common
| Location | CNY | USD | %
| | Shanghai | 50 | 7 | 1.1%
| | Hangzhou | 80 | 12 | 1.7%
| | Nanjing | 0 | 0 | 0.0%
| | Jinan | 0 | 0 | 0.0%
| | Qingdao | 100 | 15 | 2.1%
| | Hefei | 0 | 0 | 0.0%
| | Fuzhou | 50 | 7 | 1.1%
| | Nanchang | 0 | 0 | 0.0%
| | Guangzhou | 0 | 0 | 0.0%
| | Changsha | 50 | 7 | 1.1%
| | Wuhan | 0 | 0 | 0.0%
| | Zhengzhou | 0 | 0 | 0.0%
| | Beijing | 0 | 0 | 0.0%
| | Tianjin | 50 | 7 | 1.1%
| | Shijiazhuang | 0 | 0 | 0.0%
| | Taiyuan | 0 | 0 | 0.0%
| | Shenyang | 0 | 0 | 0.0%
| | Harbin | 0 | 0 | 0.0%
| | Chongqing | 0 | 0 | 0.0%
| | Chengdu | 0 | 0 | 0.0%
| | Kunming | 0 | 0 | 0.0%
| | Xian | 0 | 0 | 0.0%
| | Lanzhou | 0 | 0 | 0.0%
| | Urumchi | 0 | 0 | 0.0%
| | | | |
Change on January 23rd is with respect to prices on January 16th
Change is per tonne
Exports
The export levels remain unchanged except for WRC and HRC showing lack of acceptability under global recessionary trend:
| Item | Grade | Size | Change
| | Billet | Q235 | 150x150 | 0
| | Rebar | HRB400 | 12-25mm | 0
| | Wire rod | Q195 | 5.5-12mm | 10
| | HRC | SS 400 | 4.5-11mm | 20
| | Plates | SS 400 | 12-40mm | 0
| | CRC | SPCC | 1.0x1250 | 0
| | HDG | SGCC | 1.0x1250 | 0
| | | | |
HDG is in DX 51D 140gms
Change on January 23rd is with respect to prices on January 16th
Change is per tonne
Delivery FOB China port
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(Sourced from www.steelprices-china.com)
KDB may re invite fresh bids for Daewoo Shipbuilding - 27 Jan 2009 Bloomberg reported that Korea Development Bank has rejected Hanwha Group's KRW 6.3 trillion offers for Daewoo Shipbuilding & Marine Engineering Co and said that it plans to re invite bids for what could be the industry's biggest acquisition.
Mr Chung In Sung senior executive director at Korea Development Bank said that Hanwha's fundraising plan for a 50.4% stake in Daewoo Shipbuilding was insufficient. He added that the bank will try to resell the shares depending on market conditions.
Mr Lee Jae Won analyst at Tong Yang Securities Inc in Seoul said that "It could take Korea Development Bank some time to resell the shares given the value of the stake has fallen and the financial market conditions still look uncertain."
Mr Chung said that Korea Development Bank won't return the more than KRW 300 billion Hanwha paid in deposit for the acquisition. The stake being sold by Korea Development Bank and Korea Asset Management Corporation is worth KRW 1.87 trillion.
It may be noted that Hanwha, with interests from explosives to shopping malls, won the bid for Daewoo Shipbuilding on October 24th 2008 as part of a plan to extend its construction and energy businesses to oil tankers and deep see drilling structures. It beat Hyundai Heavy Industries Co in the auction.
(Sourced from www.bloomberg.net)
Indian power plants may miss coal import target - 27 Jan 2009 PTI reported that Indian government is likely to miss its coal import target of 20 million tonnes in the current financial year.
As per report ministry of Power had set a target of importing 20 million tonnes of coal in 2008-09, as many of the country's power plants were running short of the fuel. So far, it has imported only 11 million tonnes and is not expected to import any more in 2008-09.
NTPC too may not be able to meet its coal import target of 8.2 million tonnes during the financial year. So far the company has imported 1.5 to 2 million tonnes.
(Sourced from PTI)
Recession reports - UK in recession after worst GDP drop in 30 years - 27 Jan 2009 Official figures released on January 23rd 2009 confirmed that Britain's economy is in recession.
The data showed that contraction in the economy for the second consecutive quarter which is a condition of recession.
The official data of fourth quarter of 2008 reflected a sharp contraction in the output in the UK economy. An economy is called in recession when its financial growth is negative for two successive quarters.
The Office for National Statistics said that gross domestic product had shrunk by 1.5% in the fourth quarter of 2008 as compared with the previous three month period, when it contracted by 0.6%.
The data also showed biggest quarter on quarter decline since 1980. The employment opportunities in the quarter also showed a decline with unemployment figures reaching at 1.92 million.
Earlier, Mr Gordon Brown Prime Minister of Britain said that the duration of Britain's recession depends on the degree of international cooperation in battling the economic crisis. He added that "It depends on the degree of international cooperation. If we can get America, Europe and other countries working in harmony and in tandem, remember this is a global financial crisis, it's something that is happening in every country and continent in the world, and it is spreading to the emerging markets and the developing countries. So the way to deal with it is common action."
Mr Brown said that Britain could do a lot on its own to counter the downturn. He added that "We are fighting this recession with every weapon at our disposal."
(Sourced from www.reuters.com)
Rio Tinto Alcan completes sale of its equity stake in Ningxia aluminium smelter - 27 Jan 2009 Rio Tinto Alcan has completed the sale of its 50% equity share of the Alcan Ningxia aluminium joint venture in China to Qingtongxia Aluminium Group Co Ltd for gross cash consideration of USD 125 million.
In addition, Rio Tinto Alcan received USD 13 million for the cancellation of an option right to expand at the Qingtongxia smelter complex. Alcan Ningxia joint venture owns a 160,000 tonne per year potline in Qingtongxia.
Mr Dick Evans CEO of Rio Tinto Alcan said that "Despite the challenges of the current market, we have completed a transaction that creates clear value both for Rio Tinto Alcan and QTX. We have sold our stake in Alcan Ninxgia after being approached by our partner QTX in late 2007, to further our business model of investing in low cost, large scale and long term assets.”
Rio Tinto Alcan's sale of its stake in Alcan Ningxia is in line with Rio Tinto's global divestment strategy and the Rio Tinto Group's commitment to preserving value for shareholders by conserving cashflow and reducing levels of debt in response to global economic conditions.
Directory of Steel Pipe Makers in China - 27 Jan 2009 Welded pipe and seamless pipe are the two major categories of tubular products in China and are not only used domestically but are exported across the world.
China's seamless pipe enterprises began expansion from 2004. By end of 2006, the nation's capacity of this products reached 16.5 million tonnes. As the world's first producer, China has over 300 seamless steelmakers, a part of which possess first rate manufacturing technology and most advanced facilities, bringing domestic sufficiency close to 90%.
On welded pipe, the producers are distributed more scattered, bulk of which are privately owned and have a relatively big capacity. Yet, many productions are affected by seasonal factors and actual output can be less than the total capacity of 37 million tonnes. ERW accounts for around 80% of the total welded pipe production capacity.
Published in December 2008, 'Directory of Steel Pipe Makers in China ' has been comprehensively researched and prepared, to bring you a fully up to date guide to Chinese steel pipe industries.
Why spend hundreds of hours searching for new contacts? Invest in a copy TODAY!
Content:
This report covers name and product details of 1208 steel pipe manufacturers of China in alphabetical as well as location wise order. Look at the information you'll get in the 'Directory of Steel Pipe Makers in China'
• Company name -1208 entries
• Address-1208 entries
• Email-1193 entries
• Phone number-1207 entries
• Fax number -1203 entries
• Mob -487 entries
Format: PDF File
Total no of pages – 629
Delivery by Email on receipt of payment
Price: SD 500 or equivalent in INR
Additional Charges would be levied for delivery of file on a CD or in printed form
How to order:
Ordering the report is simple. You can order your copy to reports@steelguru.com , who will send you an invoice of the report.
Downsizing deals - Victoria Steel Works may shut down - 27 Jan 2009 It is reported that Victoria Steel Works could be forced to shut after announcing the severe downturn in the economy and escalating fuel costs were proving too much for the company to stand. More than 150 jobs facing the chop after the closure.
Its fate now lies with the result of a 90 day consultation of staff and investors. The firm has 5 other sites around the region, but the management has said these will not be affected.
Mr Tarlok Singh MD of Victoria Steel Works said that “We deeply regret we have been forced to take this course of action. The severe downturn in the global economy coupled with intense domestic and foreign competition and violently escalating energy costs means the viability of keeping the Victoria Steel Works operating is under question.
He added that “In this difficult time we are looking at all options to ensure we make the right decisions for all concerned.”
The firm is owned by steel processor Niagara LaSalle (UK) Ltd. The company, based in Bull Lane and previously known as W Wesson, also has sites in Planetary Road, Willenhall; Peartree Lane, Brierley Hill; and Bagnall Street in Tipton but they will not be affected.
(Source: Evening Mail; Birmingham)
FMG suspends iron ore loading after accident - 27 Jan 2009 Fortescue Metals Group Ltd suspended loading onto ships in Western Australia after a worker was killed near its Port Hedland operation.
A spokesman for the Perth-based company said that a McConnell Dowell Corp worker was killed at a site adjacent to Fortescue’s operations at Port Hedland.
The spokesman said that “Loading will resume with the change of shift” that will take place at 6 PM local time. We have offered our support to McConnell Dowell.”
(Sourced from Bloomberg.net)
Slowdown signs - Toyota to abandon Global Master Plan - 27 Jan 2009 It is reported that Toyota Motor Corporation, struggling amid a dramatic slide in profitability, will abandon its centralized strategy for global dominance to become more attuned to the different regions in which it operates. It concluded that it’s Global Master Plan, which set production and sales targets for all vehicle models up to 5 years ahead, had pushed the company to blindly pursue expansion.
A source said that employees tried to achieve set targets at any cost, which in turn delayed the company's decision to curb output when demand caved in amid the global financial crisis. It added that Toyota will instead formulate a new strategy, dubbed Market Vision, which will determine product rollout plans for different regions for 2015 based on individual sales trends and customer requests.
The new plan will be drawn up by June 2009 under the leadership of Mr Akio Toyoda executive VP, who is scheduled to be promoted to president the same month, pending shareholder approval. The Global Master Plan was first established in 2002 to outline Toyota's overseas expansion plan for employees and parts suppliers. The plan served as an overall guideline for the automaker's product planning as well as production and sales plans. The production and sales targets, however, became enshrined as an immutable part of company policy.
A senior Toyota official said that "Our employees put so much emphasis on the plan that their work procedures were bent on achieving its targets. As a result, they failed to listen to what frontline workers in showrooms and on factory floors had to say as eagerly as they used to."
Toyota concluded that obsessively focusing on the plan kept it from cutting production fast enough when the crisis hit and contributed to its first operating loss in postwar years, projected for the current business year. The new Market Vision will be put together mainly by the company's product planning department, which gathers requests and complaints from customers.
(Sourced from www.asahi.com)
Directory of Mining Industry in India - 27 Jan 2009 Mining in India is over 6000 years old. Mining industry in India includes both metallurgical and mineral mining industries in India and together they form the backbone of the industrial development of India as they provide the basic raw materials like coal, petrol, mining minerals, steel, copper, Aluminium metals etc. to the India manufacturers.
It was only after independence that the mining sector in India experienced a phenomenal increase in growth rate. In total there are 84 minerals being produced in India including 4 fuels, 11 metallic, 49 non-metallic industrial and 20 minor minerals. The products of Indian mining sector consist of coal, lignite, limestone, iron ore, bauxite, copper, lead, zinc and many more contributed by over 3100 mines located all over the country. Productions from open cast mines account for more than 80 percent of the total mineral production in the country. So the quantity of minerals being excavated annually from the Indian mines can be determined by summing up the quantity of overburden with the annual mineral production.
Published in January 2009, 'Directory of Mining Industry in India' has been comprehensively researched and prepared, to bring you a fully up to date guide to Indian mining industries.
Why spend hundreds of hours searching for new contacts? Invest in a copy TODAY!
Content:
This directory covers name and product details of 162 mining industries of India in alphabetical as well as location wise order. Look at the information you'll get in the 'Directory of Mining Industry in India'
• Company name -162 entries
• Address-71 entries
• Email-141 entries
• Phone number-162 entries
• Fax number -156 entries
• Mob -6 entries
Format:PDF File
Total no of pages – 96
Delivery by Email on receipt of payment
Price: SD 350 or equivalent in INR
Additional Charges would be levied for delivery of file on a CD or in printed form
How to order: rdering the report is simple. You can order your copy to reports@steelguru.com , who will send you an invoice of the report.
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