| Price Index - India | | | | 05-Feb | 04-Feb | Change | | ILPPI | 6465 | 6495 | -30 | | IFPPI | 6488 | 6480 | +8 | | INDSPI | 6476 | 6488 | -12 | | What is it? | | Currency | | AUD | 1.5445 | | BRL | 2.2977 | | CAD | 1.2306 | | CNY | 6.8246 | | EUR | 0.7789 | | GBP | 0.6887 | | INR | 48.8230 | | JPY | 89.9134 | | RUB | 36.2463 | | USD | 1.0000 | | ZAR | 9.9567 | | View Current Currency | | Metal Rates Cash Seller & Settlement | | Zn | USD 1143 | | | Ni | USD 11505 | | | Sn | USD 11220 | | | Al | USD 1408 | | | Cu | USD 3350 | | | View Current Metal Rates | | Steel Futures | | LME-F | 290 (04-Feb) | USD | +15 |  | | LME-M | 330 (04-Feb) | USD | 0 |  | | DGCX | 480 (04-Feb) | USD | 0 | | | NCDEX | 23900 (19-Dec) | INR | 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
Steel scrap prices dip by 3% in Mumbai - 06 Feb 2009 It is observed that market prices for steel scrap dipped by 3% at Mumbai on February 5th 2009.
Ingot price remained firmed across the country.
But the prices of sponge iron and some grades of iron ore improved by 1.5% and 3% respectively.
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(Sourced from www.steelprices-india.com)
JSW Steel January crude steel production up by 41% MoM - 06 Feb 2009 On recommencement of two furnaces in January 2009, which were temporarily shut down during November and December 2008, JSW Steel reported crude steel production for January 2009, showing a growth of 41% over December 2008.
| Product | Jan'09 | Dec'08 | Change
| | Crude Steel | 0.321 | 0.228 | 40.8%
| | Rolled Products - Flat | 0.260 | 0.213 | 22.1%
| | Rolled Products - Long | 0.038 | 0.029 | 31.0%
| | | | |
In million tonnes
However, the crude steel production was down by 2.7% YoY
| Product | Jan'09 | Jan'08 | Change
| | Crude Steel | 0.321 | 0.330 | -2.7%
| | Rolled Products - Flat | 0.260 | 0.265 | -1.9%
| | Rolled Products - Long | 0.038 | 0.028 | 35.7%
| | | | |
In million tonnes
While the Company commissioned Sinter plant, Coke oven batteries, BOF, Slab caster, Billet caster and Wire rod mill, the Blast furnace and Bar mill are planned to be commissioned in February or March 2009 to make the 3 million tonne per annum expansion project fully operational.
Indian long product steel price index slides again - 06 Feb 2009 The domestic Indian Steel prices declined once again on February 5th 2009. The Indian Long Product Price Index (ILPPI) fell by 29 points and Indian Flat Product Price Index (IFPPI) rose by 8 points. The overall Indian Steel Price Index (INDSPI) too fell by 12 points:
| Class | 04-Feb | 05-Feb | Change
| | ILPPI | 6495 | 6465 | -29
| | IFPPI | 6480 | 6488 | 8
| | INDSPI | 6488 | 6476 | -12
| | | | |
ILPPI – Long Product Price Index
IFPPI – Flat Product Price Index
INDSPI – Indian Steel Price Index
| Category | 04-Feb | 05-Feb | Change
| | PI - TMT | 6238 | 6194 | -43
| | PI - WRC | 6999 | 6975 | -25
| | PI - Angle | 6131 | 6124 | -7
| | PI - Channel | 6170 | 6156 | -14
| | PI - Joist | 5779 | 5763 | -16
| | | | |
| Category | 04-Feb | 05-Feb | Change
| | PI - Narrow Plates | 6178 | 6178 | 0
| | PI - Wide Plates | 6557 | 6550 | -7
| | PI - Hot Rolled | 6284 | 6300 | 16
| | PI - Cold Rolled | 7049 | 7049 | 0
| | PI - Galvanized | 6771 | 6771 | 0
| | | | |
To know more about these indices please visit
http://steelprices-india.com/spi_services/spi.html
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(Sourced from www.steelprices-india.com)
Mr Paswan hails SAIL as an exemplary PSU - 06 Feb 2009 BL reported that Mr Ram Vilas Paswan union minister for Steel and Fertilizer has hailed Steel Authority of India’s untiring efforts to improve efficiencies and profitability even during an economic downturn.
Mr Paswan said that SAIL has set an exemplary performance among PSUs.
Mr Roongta chairman of SAIL said that “In this landmark 50 year journey, SAIL has faced many challenges and has successfully converted them into opportunities.”
He attributed the company’s achievements to the capabilities, commitment and contributions of the SAIL collective.”
(Sourced from Business Line)
Essar Steel Algoma has concerns about Buy American - 06 Feb 2009 According to Mr Armando Plastino COO of Essar Steel Algoma's, serious concern over a bill to keep Canadian steel out of the United States as that country embarks on the biggest infrastructure boom in generations. He said that an increasingly protectionist US does not bode well for anyone.
Mr Plastino said that "We have a lot of customers in the United States we count on and they in turn count on us for good, quality steel and we want that relationship to continue."
He said that "We have serious concerns about protectionist measures. That seems to be the direction it's headed though it hasn't formally passed into law yet. He called on governments to use their power to preserve the principles of fair trade and ensure there is market based competition in Canada, the United States and abroad."
Mr Plastino said that Canada's big steelmakers, the former Dofasco, Stelco, Ipsco and Essar, which have all been bought by foreign buyers, sell to the energy, auto, appliance, construction and energy pipe markets on both sides of the border. Canada, the US biggest trading partner, exports about 40% of its steel there and Essar at the peak of the market exported between 40% and 50% to the US.
He was reacting to Congress passage Wednesday of an USD 819 billion economic stimulus plan. As drafted, the American Recovery and Reinvestment Act includes a so called Buy America provision that would call on major public works projects to favour US steel over imported metal. Mr Barack Obama President of US wants the Senate to vote on the bill by mid February.
(Sourced from www.saultstar.com)
India cancels restraints on imports of seamless pipe products - 06 Feb 2009 It is reported that Indian government, which had put into effect import restraints for seamless pipe products in order to prevent China & Ukraine from selling off their steel stockpiles, revoked this policy on January 16th due to the sluggish market.
However, this has elicited many complaints from India’s pipe manufacturers because the import volume may increase while the market nevertheless remains anemic.
(Sourced from YIEH.com)
India Railways cuts back sops given to iron ore exporters - 06 Feb 2009 It is reported that Indian Railway has reduced the freight rate concession extended to iron ore exporters by withdrawing INR 100 from the concession of INR 134 a tonne rebate enjoyed till now.
And those customers who received concessions of below INR 100 will not receive any concessions in future.
This comes into effect from February 1st 2009 and will be valid up to March 31st 2009.
The Railways had earlier extended freight concessions of up to 50% on export of iron ore till March 31st 2009.
Indian long product prices decline by 2% to 3% at metros - 06 Feb 2009 The prices of long products in Indian witnessed a depressing trend on February 5th 2009, which is reflected in dip in the Indian Long Product Price Index (ILPPI). ILPPI reduced by 29 points on February 5th 2009 as compared to the value on February4th 2009, to reach lowest ever level, since its start on July 1st 2008, to 6465.
The prices of long products reduced at major locations, ie four metro cities, New Delhi, Kolkata, Mumbai and Chennai.
Kolkata
| Item | Grade | Size | Change | %
| | CHNL | GR A | 75/100 | -772 | -2.4%
| | JSTI | GR A | 250x125 | -552 | -1.7%
| | | | | |
Change is on February 5th as compared to February 4th 2009
Change is in INR per tonne
Mumbai
| Item | Grade | Size | Change | %
| | TMT | Fe 415 | 12mm | -229 | -0.8%
| | | | | |
Change is on February 5th as compared to February 4th 2009
Change is in INR per tonne
Chennai
| Item | Grade | Size | Change | %
| | TMT | Fe 415 | 12mm | -700 | -2.2%
| | CHNL | GR A | 75/100 | -800 | -2.5%
| | | | | |
Change is on February 5th as compared to February 4th 2009
Change is in INR per tonne
Delhi
| Item | Grade | Size | Change | %
| | TMT | Fe 415 | 12mm | -557 | -1.8%
| | | | | |
Change is on February 5th as compared to February 4th 2009
Change is in INR per tonne
Prices of some of the long products also reduced at some other location including Ahmedabad and Kanpur.
It is observed that the prices of rebars (TMT) remain under pressure during this week, as all Indian product index for TMT PI-TMT has seen dip of 71 points or 1.1% since the beginning of this week
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(Sourced from www.steelprices-india.com)
Mr Scindia unveils stamp to mark Golden Jubilee Celebrations of SAIL - 06 Feb 2009 It is reported that Mr Jyotiraditya Scindia minister of State for Communications & IT unveiled a commemorative postage stamp during the Golden Jubilee celebrations of Steel Authority of India Ltd today.
Mr Scindia said that “I am delighted to be here today for the release of commemorative postage stamp on 50th Anniversary of Steel Authority of India, an organization that is truly the back bone of infrastructure development in India. Our first PM Jawahar Lal Nehru laid the foundations of these Modern Temples of India, as he fondly called them, to create a modern and vibrant India based on modern science and technology.”
He added that “Despite the progress we have made so far, sustained development of our human capital and our infrastructure are some of our major challenges which need to ensure that the competitive advantage is not frittered away. In fact poor infrastructure could prove to be our Achilles heel in our journey of development. Good power, roads, telecom connectivity are sine qua non for sustained GDP growth. In this connection the role of SAIL has been especially laudable.”
He also said that “This commemorative postage stamp released today will carry the image and message of SAIL not only in India but world over and in times to come will become of serious study by philatelist and research scholars. I wish SAIL all the very best and I am sanguine of its continuing exceptional role in the development of our country.”
Steel Authority of India, set up to incorporate all steel related industries under its ambit has provided unique and vibrant platform for all the steel units and has led from the front in creating world class infrastructural base for our country. In February 1959, the first President of India Dr Rajendra Prasad dedicated to the nation the first blast furnaces of Rourkela and Bhilai steel plants. It marked the beginning of steel plant operations in the public sector in independent India. SAIL has understood it responsibility to the nation and committee itself through it strong vision to be a respected world class corporation and the leader in Indian steel business in quality, productivity, profitability and customer satisfaction.
Indian HR prices firmness gives hope for stability - 06 Feb 2009 It is observed that, after a long time, prices of HR showed some firmness at certain locations in India on February 5th 2009, giving hope of a rebound after reaching bottom.
On the other hand wide plates prices exhibited weakness at couple of locations…
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(Sourced from www.steelprices-india.com)
TATA Metaliks gets iron ore PL in Maharashtra - 06 Feb 2009 TATA Metaliks Ltd has announced that Government of Maharashtra has conveyed approval of Central Government under section 5(1) of the Mines and Minerals (Development and Regulation) Act, 1957 for grant of Prospecting License for Iron Ore over an area of 154.80 hectare in village Dongarpal, Tahsil to Sawantwadi, Sindhudurg, Maharashtra for a period of 2 years, to the Company, subject to fulfillment of requisite formalities.
Directory of Re Rolling Steel Industry in India - 06 Feb 2009 Published in January 2009, 'Directory of Re-Rolling Industry in India ' has been comprehensively researched and prepared, to bring you a fully up to date guide to Indian Re-Rolling industries.
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Content:
This report covers name of 825 steel re-rollers of India in alphabetical as well as location wise order. Look at the information you'll get in the ' Directory of Re-Rolling Industry in India '
• Company name -825 entries
• Address-825 entries
• Email-113 entries
• Phone number-813 entries
• Fax number -363 entries
• Mob -155 entries
Format - PDF File
Total no of pages – 454
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Price:
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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, which will send you an invoice of the report.
TATA Steel project in Chhattisgarh facing opposition - 06 Feb 2009 IANS reported that TATA Steel is facing farmer’s ire over a proposed INR 10,000 crore steel plant in Chhattisgarh.
In June 2005, the steel major signed an agreement with the state government to set up the plant, with an annual manufacturing capacity of 5 million tonne in Bastar, one of India's most impoverished districts. However, 4 years on, the Chhattisgarh Government is yet to complete the land acquisition process.
Mr Raman Singh CM of Chhattisgarh, who holds the industry portfolio said that "Everybody wants the TATA project in Bastar except some CPI fellows, who have misguided a few innocent farmers." Mr Singh said that "The TATA plant is a must for development of the backward Bastar region. I want to see the project sail through as early as possible. It has already been delayed."
On its part, the steel major quoted it is committed to the project. Mr Sanjay Choudhry the company's corporate communications chief said that "TATA Steel is committed to setting up the steel plant as per the MoU signed with Chhattisgarh."
(Sourced from IANS)
Macroeconomic indicators - India leaves GDP unchanged at 9% - 06 Feb 2009 Reuters reported that India recently left its estimate for gross domestic product growth in the 2007-08 fiscal year unchanged at 9.0%.
According to a government statement, but the Central Statistical Organization revised upwards GDP growth for 2006-07 to 9.7% from the previous estimate of 9.6%. Expansion in 2005-06 was moved up to 9.5% from 9.2%.
However, Asia's third largest economy is expected to slow to around 7% in the current fiscal year which ends in March due to the impact of the global slowdown.
(Sourced from Reuters)
Steel Strips Wheels January sales rise marginally - 06 Feb 2009 Reuters reported that Steel Strips Wheels Ltd sales increased marginally to 446,157 units from 440,797 units last year.
Steel Strips in a statement said that that it produced 410,929 wheel rims in January compared with 425,203 a year ago.
(Sourced from Reuters)
EUROFER reports warns of unprecedented downturn in 2009 - 06 Feb 2009 EUROFER has released the contents of “Economic and Steel Market Outlook 2009-2010 - The January ’09 Report” from EUROFER’s Economic Committee
The report said that “Due to the intensifying impact of the global credit crisis, spreading from the financial sectors into other parts of the economy, the EU economy has been pushed into a severe recession at the start of 2009.”
The report added that ‘Due to its specific background and geographical scope, the current downturn is extremely difficult to put into an historic perspective. Nevertheless, provided that the policy measures are timely adopted and effective, the largest probability is still given to a base scenario in which the recession will start bottoming out by late 2009. The latest forecasts of EUROFER’s Economic Committee show EU GDP growth falling this year by 1.9%; a slight improvement in economic conditions is pencilled in for 2010.”
As per report “The significant deterioration in economic fundamentals since autumn 2008 is fully reflected in the outlook for the EU steel using industries; the first half of this year will see output falling by 10% y-o-y. The second half is expected to see a gradual easing of the downward trend, but on balance production in the steel using sectors will still fall 7-8% in 2009. Particularly the automotive sector is badly affected by the recession, but also construction, steel tubes and the engineering sectors cannot escape a sharply downward trend. Most sectors will see a mild improvement in 2010.”
The report also said that “The EU steel market is severely impacted by the recession and will be facing an unprecedented downturn this year. The outlook for the first half of 2009 is for a continuation of the double-digit y-o-y decline in real consumption registered in Q4’08 and a further stock correction in the distribution chain and at the end-user level. As a result, apparent consumption will drop by 29%% y-o-y in the 1st quarter and by a further 23% y-o-y in the 2nd quarter. Apparent consumption will continue to decline in the remainder of 2009, albeit at a less dramatic rate; Q4’09 is expected to see some growth again compared with the very low Q4’08 level. Despite the projected 11% decline in imports in 2009, import pressure will remain high because of the much stronger sacrifice the domestic producers are making in order to enable the market to reach a new equilibrium.”
However it concluded that “Following the 15% drop in 2009, some growth in apparent consumption is foreseen for 2010, owing to the absence of a huge stock reduction as seen in 2009.’
Steel prices in Middle East crash by 5.5% in a single day - 06 Feb 2009 It is reported that the steel market in Middle East was very badly hoit on February 3rd 2009, as the unique indicator of steel prices in MEA showed massive decline of 5.5% in a single day.
The overall fall in prices of flat products was more pronounced as MFPPI crashed by massive 573 points or 8.8% on February 3rd 2009 as compared to MFPPI on February 2nd 2009. Whereas the prices of long products fell by lesser amount as MLPPI reduced by 142 points or 3.4% only.
| Class | 02-Feb | 03-Feb | Change | %
| | MLPPI | 4216 | 4074 | -142 | -3.4%
| | MFPPI | 6537 | 5964 | -573 | -8.8%
| | MEDSPI | 4919 | 4647 | -272 | -5.5%
| | | | | |
MLPPI – MEA Long Product Price Index
MFPPI – MEA Flat Product Price Index
MEDSPI – MEA Steel Price Index
The prices crash happened across almost all product categories except wire rods.
| Category | 2-Feb | 3-Feb | Change | %
| | PI - Galvanized | 6264 | 5467 | -797 | -12.7%
| | PI – HEA | 6427 | 5759 | -668 | -10.4%
| | PI - Narrow Plates | 6318 | 5773 | -545 | -8.6%
| | PI – Wide Plates | 8413 | 7887 | -525 | -6.2%
| | PI - Cold Rolled | 6087 | 5565 | -522 | -8.6%
| | PI – Structural | 5389 | 4941 | -448 | -8.3%
| | PI - Hot Rolled | 5414 | 4970 | -444 | -8.2%
| | PI – Rebar | 3661 | 3501 | -160 | -4.4%
| | PI - Angle | 5140 | 5004 | -137 | -2.7%
| | PI – WRC | 4126 | 4126 | 0 | 0.0%
| | | | | |
Exact numbers (Prices prevailing at important cities in UAE, Saudi Arabia, Oman, Bahrain, Qatar and Kuwait) and analysis is available
To keep tab on steel prices in Middle East on daily basis, 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)
Lower grade Indian iron ore spot price catch up upward trend - 06 Feb 2009 It is observed that the spot prices of Indian iron ore fines FOB prices firmed up on February 5th 2009 as compared to February 4th 2009 as Chinese buying persisted after a revival in December.
Indian iron ore fines FOB East Coast
| Grade | %
| | Fe 63.5/62.5% | 1%
| | Fe 61 / 60 % | 5%
| | Fe 59 / 58 % | 4%
| | Fe 58 / 57% | 4%
| | |
Change is on February 5th as compared to February 4th 2009
The remarkable feature is that the grades other than Fe 63.5/62.5% showed a surge of almost 5% in a single day to catch up the upward trend, as their price movement had been somewhat subdued since January beginning as compared to Fe 63.5 grade.
But with this rally, lower grade have exceeded the price surge since January 2009.
| Grade | %
| | Fe 63.5/62.5% | 9%
| | Fe 61 / 60 % | 9%
| | Fe 59 / 58 % | 17%
| | Fe 58 / 57% | 17%
| | |
Change is on February 5th as compared to January2nd 2009
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(Sourced from www.steelprices-india.com)
BDI surges again by 14% to gain 30% in just 2 days - 06 Feb 2009 It is reported that on February 5th 2009, Baltic Dry Index reached 1498 points up by 182 points as compared to February 4th 2009, thus gaining by whooping 30% in just two days
| Date | BDI | DoD
| | Feb 3rd | 1148 |
| | Feb 4th | 1316 | 15%
| | Feb 5th | 1498 | 14%
| | | |
Capsize| | BCI | Change
| | INDEX | 2,734 | 354
| | SPOT 4 TCE AVG | 26,495 | 4685
| | February 2nd | 21,810 |
| | Year Ago | 103,364 |
| | | |
All except INDEX in USD
Change is with respect to February 4th 2009 numbers
Panamax| | BPI | Change
| | INDEX | 1,128 | 128
| | SPOT 4 TCE AVG | 9,040 | 1035
| | February 2nd | 8,005 |
| | Year Ago | 46,028 |
| | | |
All except INDEX in USD
Change is with respect to February 4th 2009 numbers
Supramax| | BSI | Change
| | INDEX | 783 | 102
| | SPOT 4 TCE AVG | 8,190 | 1069
| | February 2nd | 7,121 |
| | Year Ago | 40,457 |
| | | |
All except INDEX in USD
Change is with respect to February 4th 2009 numbers
EU investigating suspected cartel in PC steel companies - 06 Feb 2009 Reuters reported that the European Union's antitrust regulators are investigating a suspected cartel among a number of producers of steel wire and rods, known as pre stressing steel.
The European Commission said that it suspected the companies of participation in a cartel in violation of EU rules on restrictive business practices.
It did not name any of the suspected companies, to which it sent last October a statement of objection, a formal step in Commission antitrust investigations.
The Commission said it is now considering their replies and if found guilty, they may face a fine of up to 10% of their turnover.
(Sourced from Reuters)
BHP expects H2 iron ore sales to be in line with first half sales - 06 Feb 2009 Mr Marius Kloppers CEO of BHP Billiton said that it expects to sell roughly the same volume of iron ore in the second half of its financial year as it did in its first half as substantial de stocking takes place in China.
Mr Kloppers added that the situation was a little more complex for its two other steel feed products, manganese and coking coal. Much of its manganese output is from South Africa.
He said that while iron ore was very North Asia focused with 50% going into China, and hence a reasonable degree of forward visibility with the de stocking in China, manganese and coking coal had North American, European, South American and Indian markets.
In addition, manganese was a very storable product and hence it was far more difficult to judge its de stocking status.
He added that “My observation that the risk is probably to the downside in coking coal."
The cutbacks in manganese production had already been made, totaling almost 50% in the second half on a unit basis.
Mr Kloppers believed that a substantial amount of de stocking had taken place in China, which led him to anticipate that the firm would sell approximately the same volume of material in its iron ore business over the second half of the year as it did in the first, for a total of about 130 million tonnes a year.
(Sourced from www.miningweekly.com)
NLMK decommissions two coke batteries - 06 Feb 2009 NLMK announced that it has decommissioned coke batteries No 3 and No 4 with a combined capacity of 0.68 million tonnes per year at its main production site in Lipetsk.
This decision was driven by the recent significant deterioration of demand for coke following the drop in steel production both in Russia and globally. NLMK's production plans envisaged the halt of operations of these coke batteries commissioned in 1959 due to the significant level of equipment depreciation and relatively high level of emissions by 2011.
As a result of the shutdown of batteries No 3 and 4, coke production capacity of NLMK is reduced to 7.3 million tonnes including 2.7 million tonnes at its main production site and 4.6 million tonnes at its West Siberian subsidiary Altai-koks, the largest coke producer in Russia. Remaining coke-making capacity ensures NLMK’s 100% self-sufficiency in coke including its plans to increase blast furnace capacity after construction of Blast Furnace No. 7 in Lipetsk.
In October 2008, NLMK decommissioned coke batteries No. 7 and 8 with a total capacity of 1.04 million tonnes per year.
Chinese Premier warns against protectionism - 06 Feb 2009 Xinhua reported that visiting Mr Wen Jiabao Chinese Premier recently warned against protectionism in face of lingering global financial crisis.
Mr Wen while speaking at a meeting with Mr Tony Blair former British Prime Minister said as international financial crisis is spreading, his visit to London was to send a message of confidence for Britain and China to join hands in overcoming current difficulties. He noted that the two sides should further explore the potential for cooperation, and guard against trade protectionism, in particular.
Mr Wen who arrived in London on Saturday for a three day official visit welcomed British businesses to invest in China, while expressing wishes for Britain to increase exports of goods, technology and equipment to China.
On the upcoming G20 summit in April, Mr Wen pledged that China would work together with Britain towards an active achievement.
(Sourced from Xinhua)
Mr Obama may eliminate special protections for US steel industry - 06 Feb 2009 US President Mr Obama said that he wants to eliminate special protections for the US steel industry from the legislation as Senate lawmakers work on the details of what is now a USD 900 billion stimulus plan.
Mr Obama said that he would urge lawmakers to leave out of the plan a Buy American requirement that all steel used in the federally subsidized highway and other infrastructure projects come from US producers. That requirement was put into both the House and Senate versions of the economic stimulus plan at the behest of the US steel industry, which is operating at less than 50% of capacity. He added that "I think it would be a mistake, though, at a time when worldwide trade is declining, for us to start sending a message that somehow we're just looking after ourselves and not concerned with world trade."
The American Iron & Steel Institute has argued the steel restrictions are needed to ensure that the stimulus plan creates more jobs at US mills, which have idled thousands of steelworkers since last summer.
Other US manufacturers, such as Caterpillar, are lobbying against the measure, claiming it only would prompt other nations to put up barriers to US products in retaliation. Nearly half of all Caterpillar's sales of heavy earth moving equipment last year were overseas.
(Sourced from www.chieftain.com)
Newcastle port coal exports down by 28% WoW - 06 Feb 2009 Bloomberg reported that coal exports from Australia’s Newcastle fell 28% last week amid lower prices.
Newcastle Port Corporation said that the volume shipped in the week ended fell to 1.33 million tonnes from 1.86 million tonnes a week earlier. A total of 20 ships, waiting to load 2 million tonnes of coal, were lined up outside the port, unchanged from a week earlier.
Power station coal prices at the port, a benchmark for Asia, fell 5.7% last week, the first decline in 4 weeks. The weekly price index for power station coal shipped from Newcastle slipped USD 5.04 to USD 83.15 per tonne according to the globalCOAL NEWC index.
Rio Tinto Group, Xstrata Plc and BHP Billiton Limited are among mining companies that ship coal through Newcastle.
Coal ships waited 8.1 days to load coal, up from 8 days a week earlier. The waiting time compared with 0.07 day for general cargo vessels last week.
A total of 14 vessels carrying coal left Newcastle in the week ended Jan. 31st 2009. Twelve ships were bound for Japan and 2 for South Korea.
(Sourced from Bloomberg)
Kobe Steel posted 9 months operating loss - 06 Feb 2009 JMB reported that Kobe Steel's aluminium and copper unit posted operating loss in April to December 2008 period. The unit's annual operating loss will be JPY 28 billion for fiscal 2008 ending March 2009 as compared with estimated JPY 2 billion loss as of October 2008 and JPY 22 billion of operating profit in fiscal 2007.
Kobe said that it revised the outlook downward to JPY 700 million of net loss for fiscal 2008, which is the first loss in 5 years as compared with estimated JPY 2 billion of profit as of November. Major demand drop impacts on nonferrous metal industry in Japan along with the plunging price of metals.
(Sourced from www.japanmetalbulletin.com)
Rio Tinto iron ore rail back to normal after derailment - 06 Feb 2009 Trading markets reported that Rio Tinto Limited’s main iron ore rail line in the Pilbara region of Western Australia State has resumed normal operation after being shut last week by a derailment.
About 70 loaded ore cars in a 230 car train derailed late last Thursday just north of the Rosella junction near Tom Price, closing both sets of tracks on the main line that transports ore from Rio's mines in the region to port.
A spokesman for the miner said that one of the tracks had reopened on Tuesday night and the second had opened Wednesday, with ore now being transported as normal. There had been no significant impact on operations at Rio's export ports in the Pilbara as ships were loaded with ore from stockpiles and mining had also continued as normal while the main line was closed.
(Sourced from Trading market.com)
Update on Chinese CR export and import - 06 Feb 2009 It is reported that Chinese domestic cold rolled steel coil prices see small downward adjustment following a swift increase recently. However it remains to be seen whether there would be further decrease as this is more likely to be a technical correction.
On Shanghai market, 1.0mm CR sheet by Anshan steel improved by CNY 30 per tonne to CNY 50 per tonne to CNY 4730 per tonne to CNY 4750 per tonne from January 23rd. That for 1.2mm to 2.0mm CR sheet goes at CNY 4680 per tonne, 1.0mm CR coil by Maanshan at CNY 4630 per tonne an increase of CNY 100 per tonne and CNY 130 per tonne from the same period of last month.
Export offer for DC01 1.0mm CRC goes at around USD 620 per tonne to USD 640 per tonne FOB, stable with late last month. There is few export activity as steel makers are not willing to export at price lower than domestic sale level. There would not be any improvement in shipments to overseas countries if there is not higher profit rate than that in local market.
CRC import market saw few changes and the import offer for April shipment has not been published yet. Former transactions are mainly concluded at about USD 500 per tonne to USD 510 per tonne CFR Chinese ports, March shipment. Some traders have started to become cautious on further imports for fear that domestic steel prices would see further drop on more supply and no evident increase of demand from end users.
(Sourced from MySteel.net)
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Uncertainty casts over Kremikovtzi deal - 06 Feb 2009 Dnevnik reported that a tolling agreement or an acquisition of Bulgaria’s debt ridden steel maker Kremikovtzi may turn out to be an unlikely scenario as suitors fear losses from the tight steel market.
CSN is shaping up as the likelier bidder, but for now it appears more likely to offer a barter to convert coal into coke. CSN plans to initially feed the steel mill with own ore but has not decided if and when it will resume steel production.
Ukraine's Smart Group, which is interested in signing a toiling agreement, has not made up its mind on what to do with the produce either.
A representative of the plant' bondholders said it was high time any of the candidates made some concrete commitments or else gas company Bulgargaz and the Economy Ministry will have a reason to put the breaks on gas flows, which are now feeding the plant’s coke production capacities.
The plant is also processing small amounts of scrap into steel to secure workers' salaries. The staff has not been paid since December, when they got October’s wages.
(Sourced from news.dnevnik.bg)
Korea utilities settle Australian energy coal prices - 06 Feb 2009 Bloomberg reported that some power station coal producers from Australia have agreed contract prices with South Korean utilities.
Tex report said that without citing anyone Contract prices for six month and one year contracts were set at between USD 70 and USD 73 tonnes, excluding freight costs. Some South Korean utilities have modified contracts to start in January, April or August, similar to agreements reached by Japanese utilities.
It said that thermal coal suppliers from Australia last year set contracts with Korean utilities at about USD 65. Japanese buyers, which settled contract later, paid USD 125 a tonnes. Annual price talks between Australian suppliers and Japanese utilities will start by the middle of this month. Xstrata Plc, BHP Billiton Limited and Rio Tinto Group are among mining companies that ship thermal coal from Australia.
(Sourced from Bloomberg)
EUROFER warn US on Buy American provision - 06 Feb 2009 EUROFER release said that the vote in the US Senate simply recognizes that the USA is a signatory to the Government Procurement Agreement, a plurilateral agreement at the WTO and as such it has an obligation to keep its government procurement program open to the other signatories.
Mr Gordon Moffat Director General of EUROFER said that “Unfortunately the Senate’s vote does not go further and overturn the Buy American clause. Only that would have prevented the risk of trade diversion from the US market to Europe from countries which are not signatories of the GPA such as China, India, Russia, the Ukraine and Turkey. That risk remains.”
He added that “The bill represents a beggar thy neighbor policy and goes directly against the political engagement of the G20 to refrain from raising new barriers to trade. It is a protectionist measure. It sends the wrong message to the world exactly at the time that everyone should be working to keep markets open.”
In a letter to Trade Commissioner Mr Ashton earlier this week, EUROFER has asked the Commission to strongly oppose to the adoption of the Buy America steel clause and to prepare all necessary actions including referral to the WTO to overturn the measures should it be introduced.
Represented by EUROFER, the European steel industry is the world leader in its sector with a turnover of over EUR 160 billion and direct employment of 430,000 people, producing over 200 million tons of steel per year.
Cash Minerals acquires Agnew Lake from Nyah Resources - 06 Feb 2009 Cash Minerals Limited announced that it has entered into a letter agreement with Nyah Resources Corporation to acquire a 100% interest in the Agnew Lake property from Nyah.
The Agnew Lake property consists of 2 separate exploration claim blocks comprised of the Agnew Lake North Uranium property, which is the most advanced of the two claim blocks, and the Agnew Lake South property.
The Agnew Lake North Uranium Property consists of 7 unpatented mining claims covering 1,575 hectares, or 3,892 acres located approximately 40 kilometers west of Sudbury, Ontario.
The Agnew Lake Uranium Property has substantial underground infrastructure in place, including a six compartment shaft to a depth of over 980 meters with development on several levels. A decline from surface to the 1,900 foot level was also developed. During the period of operation two mineralized zones were developed. The Agnew Lake South Property consists of four mining claims located in Hyman Township of the Elliot Lake Blind River uranium district, Ontario.
In consideration, Cash Minerals will issue to Nyah an aggregate of 15,000,000 common shares and 7,500,000 common share purchase warrants of Cash Minerals. Each share purchase warrant shall entitle the holder thereof to acquire one common share of Cash Minerals at a price of USD 0.10 for a period of 3 years from the date of closing, subject to receipt of necessary regulatory approvals. Pursuant to the terms of the letter agreement, Cash Minerals and Nyah shall enter into a definitive agreement with respect to the acquisition.
The acquisition is a non arm's length transaction for the purposes of the TSX Venture Exchange as Nyah and Cash Minerals have a common director, Mr Stan Bharti and a common officer, Mr Patrick Gleeson, who is the corporate secretary of both companies.
Annual Report on China's Steel Market in 2008 and the Outlook for 2009 - 06 Feb 2009 SteelHome publishes its 'Annual Report on China's Steel Market in 2008 and the Outlook for 2009’. The report includes 14 separate reports on World Steel Market, China Steel Market, China HRC/CRC Market, China Wire Rod/Rebar Market, China Plate Market, China Stainless Steel Market, China Seamless Steel Pipe Market, China Strip Market, China Plated/coated Coil Market, China Section Market, and China Iron Ore Market, China Coke Market, China Scrap Market, China Ferroalloy Market.
Table of Contents
I Analysis on sharp rise and sharp fall in 2008 China steel market
1 Massive hike in China steel market in H1, 2008
A. Snow storm affected steel supply
B. Power coal and coke supply shortage during Spring Festival
C. Massive rise in iron ore contracted price
D. Influences of Beijing Olympics
E. Prefab construction after Wenchuan earthquake drove up cold rolled products market
F. Continuous depreciation of US dollar, crazy hike in commodity price and spreading inflation all over the world
G. World steel price surged
In spite of the tightened money policy the government implemented, inflation pressure still mounted, which cushioned the contradiction of the glut.
2 China steel price plummeted from the 3rd quarter.
A. China economy grew slower in the 3rd quarter.
B. Continuously tightening money policy exerted great pressure on capital flow.
C. International commodity price dropped with the depreciation of USD
D. Financial crisis blew heavily on market psychology.
3 China crude steel supply forecast
A. According to current market situations and production cutbacks amid many steel mills, SteelHome revised its formal prediction of 520-530 million tons of 2008 crude steel production to about 510 million tons, up 4.2% or 20 million tons year on year.
B. SteelHome assumes China steel products exports of 2008 at 57.50 million tons, down 8.2% or 5.15 million tons year on year
II China steel market anticipation for 2009
1 SteelHome assumes 540 million tons of China crude steel output in 2009.
A. Market price will further curb the growth of steel production
B. Coke supply continue to curb steel production
C. The investment in China steel industry will maintain low.
D. Flats production will stay high, and glut will not change.
E. The utilization of steel capacity stay high.
2 Financial crisis hinder China steel exports
A. World economy grow slower and steel demand dims
B. China steel exports will be improved with the resolve of financial crisis.
3 Steel demand in China home markets will sustain stable rise, but the growth rate will drop from 2008.
A. Advantages—Comprehensive national power is strengthened
B. Disadvantages—Domestic demand takes up small proportion of GDP.
C. Expectation for 2009 China Economic Growth
D. Little headroom for FAI rise.
E. Export rise slows down further.
F. Consumption grow slower.
G. Analysis on Downstream Sectors. In 2008, some steel-consuming industries are also on downward slope.
H. Steel consumption rise forecast in China home market in 2009
4 China steel market forecast for 2009
List of Tables:
1 Average Price Change in China 28 Major Cities (in yuan per ton)
2 Backward Capacity Elimination in China Steel Industry
3 IMF Outlook on World Economic Growth
4 China Crude Steel Net Export Scenarios
5 Crude Steel Demand and GDP
6 Crude Steel Demand and FAI
7 Economic Gauges in 1997-2008
To know more about the report please gets in touch with reports@steelguru.com
China may implement export rebate to support shipbuilding - 06 Feb 2009 It is reported that the plan to revive Chinese shipbuilding industry had been handed in to the State Council. The plan emphasizes on credit-strengthening support and ships self-building. It also encourages old vessel owners to place new orders so as to stimulate domestic demand. Besides, it points out export tax rebate policy, which is believed to ease credit crunch by some experts.
One shipbuilder said disappointedly that "We have no choice to deal with previous orders, which results in less and less cash flow/."
Shipbuilding industry in key provinces like Zhejiang and Fujian has been heavily impacted by sluggish export. But the industry has an enormous influence on China's economy as China is the third shipbuilding country following South Korea and Japan. Hence, CANSI once suggested Chinese government to establish supporting policy.
The new plan draft refers to long-term development planning shipbuilding industry, so it will be available for the resumption.
(Source: Shanghai Securities News)
Northland signs MoU with GIIC to supply DRI grade pellet feed - 06 Feb 2009 Northland Resources Inc announced that it has signed a non binding MoU with Gulf Industrial Investment Company to with DR grade pellet feed from 2011.
Under the MoU, Northland will deliver a portion of its iron ore concentrates to GIIC within the following schedule:
| Contractual year | annual basic quantity
| | 2011 | 250,000
| | 2012 | 1,500,000
| | 2013 | 2,000,000
| | 2014 onwards | 3,000,000
| | |
Quantity in WMT
Northland has provided GIIC with iron ore concentrate for testing, both in Bahrain and at SGA in Germany. It is anticipated that additional material from the Swedish projects and from the Hannukainen project in Finland will be delivered for testing during 2009.
Northland said that it is currently working on a pre feasibility study for the Tapuli project. The goal of Northland is to also develop and mine the Pellivuoma and Stora Sahavaara projects, which are located close to Tapuli.
Parallel to the PFS on Tapuli, it has also initiated a preliminary economic assessment on the Kaunisvaara district, including the Pellivuoma and Stora Sahavaara resources. The Pellivuoma and Stora Sahavaara resources can potentially provide future feed for, and additional production volumes from, the Tapuli processing plant, and provide products for GIIC under the MoU.
Subject to the completion of the PFS, GIIC and Northland have agreed to enter into discussions with a view to establishing a long term contract to govern the terms of sale and purchase of the DR grade pellet feed.
The Tapuli, Pellivuoma and Stora Sahavaara iron ore deposits are located in northern Sweden, near the town of Pajala. The processing facility will be located near the village of Kaunisvaara which is centrally located to the district. The area is well serviced by roads and power lines, and is within trucking distance of a railhead at Kolari, Finland.
As announced previously, it intends to transport the Tapuli and other production from the district to market using the Kolari Kemi rail line and the Kemi port, both located in Finland. The Hannukainen project is located near the town of Kolari, Finland. There is an existing rail line approximately 4.5 kilometers from the Hannukainen project area, which connects to the Kolari Kemi rail line just northeast of the town of Kolari.
Chinese plates export offers for shipments to South Korea - 06 Feb 2009 It is reported that Chinese steelmakers lifted plate export quotation to USD 600 per tonne CFR from USD 550 per tonne to USD 560 per tonne CFR before Spring Festival.
Now, they continue to raise the price to USD 620 per tonne to USD 630 per tonne CFR and the shipbuilding plate is quoted at USD 750 per tonne CFR. South Korean importers forecast the price will keep stable till March.
Chinese domestic market is warming up on the shrinking stock. Thus, the export quotation has been raised although the demand is still weak in South Korea.
(Source: Steel Daily)
Ferrexpo performance ahead of expectations - 06 Feb 2009 According to Ukrainian iron ore producer Ferrexpo 2008 was a record year with full year operating financial performance ahead of management expectations.
The group said that it benefited from a sharp reduction in costs in December as a result of a weaker local currency, continued falling oil prices and lower costs for grinding media.
In response to a reduction in demand in October, it made modest planned reductions in output, which has resulted in full year production at 2007 levels. It was however able to sell substantially all of its 2008 production, which partly compensated for much lower volumes in its traditional export and home markets.
It implemented an approximately 30% reduction in production in November to reflect the reduced demand in steel. Spot prices have since firmed and some iron ore purchasing activity resumed in December.
The group said that "Following its strong performance in 2008, the Group has started the new year profitably, albeit trading at lower margins in view of the changed price regime. Management remains confident about trading in 2009 because of the Group's unique competitive advantages."
It said that "In spite of weak demand from the Group's long term contract customers as downstream inventory de-stocking continues, the resumption of iron ore spot market activity and firmer seaborne spot prices is enabling the Group to continue to maintain its margins."
Outokumpu announces 2008 financial results - 06 Feb 2009 Outokumpu's deliveries of stainless steel in 2008 were at the same level as in 2007 at about 1.4 million tonnes. Base prices declined on average by 9% and transaction prices, which also include raw material costs, dropped by 27%, mainly due to the 43% fall in nickel price during 2008.
As a result, Outokumpu's sales declined by 21% to EUR 5,474 million in 2008. Outokumpu's profits turned to a loss in 2008 due to clearly lower base prices and somewhat higher costs in 2008. Operating loss totaled EUR 63 million whereas in 2007, Outokumpu recorded an operating profit of EUR 589 million. The underlying operational result, which excludes raw material related inventory losses and non recurring cost was some EUR 305 million positive. In 2007 Outokumpu's profit before taxes was boosted by non recurring gains from the sale of shares in Outotec Oyj and from the Talvivaara transaction.
Outokumpu's fourth quarter 2008 was clearly weaker than the year before. Deliveries fell by 26% and transaction prices by 22% resulting in 34% decline in Group sales. Operating profit turned to a substantial loss of EUR 271 million, which includes raw material related inventory losses of about EUR 185 million. Underlying operational result was EUR 69 million negative.
Outokumpu's cash flow from operations was strong at EUR 656 million in 2008, almost at the same level as in 2007. Despite lower profitability strong cash generation was achieved as the decline in metal prices released cash from working capital. Outokumpu's balance sheet remains strong with gearing of 38%. The board of directors proposes a dividend of EUR 0.50 per share for 2008.
Outokumpu expects the stainless steel markets to remain very weak in the first quarter of 2009. Current order intake represents about 50% of the Group's full production capacity. In the first quarter, Outokumpu's operating profit continues to be significantly negative due to low base price level, low delivery volumes and raw material related inventory losses. However, Outokumpu's financial and liquidity position remains strong.
Mr Juha Rantanen CEO of Outokumpu said that "In late 2008, the global financial crisis hit the stainless steel markets with speed and power. As we did not reach our profitability target, we cannot be satisfied with our financial performance in 2008. Actions have been taken to decrease working capital, postpone investments and reduce costs. Unfortunately, this also means that personnel adjustments are necessary. A challenging year lies ahead, but we are prepared to take decisive action and move quickly, when this is called for. Maximizing cash flow remains high on our agenda."
Downsizing deals - Anglo Coal 43 mine workers jobs saved - 06 Feb 2009 ABC News reported that half of the workers due to be retrenched from a Anglo coal mine have been in Coal central Queensland given a reprieve.
Anglo Coal had earlier said that it would close the Dawson North mine at Moura with the loss of 86 jobs. But after consultation, it has agreed to redeploy 43 of those workers to other areas of its Dawson operation. A total of 20 will go to Dawson South and 23 to Dawson Central.
However, the Construction, Forestry, Mining and Energy Union said that Anglo Coal has got rid of a number of contractor positions to allow for the relocation of permanent staff.
Anglo Coal has not commented on that claim, but Mr Rick Fairhurst general manager of Dawson Mine's said that the Dawson North pit is likely to close in mid March 2009 with 42 workers to be made redundant.
(Sourced from www.abc.net)
Downsizing deals - Ruukki Metals concluded negotiations at Finland service centers - 06 Feb 2009 Ruukki Metals announced that it has concluded employer employee negotiations with regard to temporary layoffs at steel service centers in Finland. A total of around 340 persons will be temporarily laid off at the service centers at Puurtajankatu Järvenpää, Raahe, Seinäjoki and Uusikaupunki.
The layoffs are due to decreasing orders because of weakening market conditions. The length, time and need for layoffs will vary according to unit.
Ruukki Metals employs a total of some 740 people at its service centers in Finland.
Great Lakes coal shipments drop in January 2009 - 06 Feb 2009 The Lake Carrier’s Association said that 778,971 tonnes of coal was shipped on the Great Lakes in January 2009. That’s only 51% of the tonnage shipped in January 2008 and just less than 50% of the 5 year January average.
Shipments on Lake Superior totaled 418,844 tonnes in January 2009, compared to 874,781 tonnes in January 2008 and a 5 year January average of 631,736 tonnes.
The Port of Superior shipped 390,328 tonnes of coal in January 2009, compared to 847,858 tonnes in January 2008 and a 5 year January average of 595,123 tonnes.
The Lake Carrier’s Association represents 16 American corporations that operate 63 US flag vessels on the Great Lakes.
Tenaris to display premium products at IADC SPE Conference - 06 Feb 2009 It is reported that Tenaris will present a sample of its premium products at the IADC/SPE Drilling Conference & Exhibition, to be held at the RAI Congress Center in Amsterdam from March 17th 2009 to March 19th 2009. It will feature a series of products including:
1. TenarisHydril premium connections
A comprehensive range of integral connections setting new standards in operational performance and environmental compliance worldwide
2. Dopeless® technology
A dry, multi layer coating which is applied through a controlled industrial process and has the potential to transform drilling operations in offshore and Arctic environments
3. Drill pipe
Interchangeable with API tool joints, Tenaris drill pipe is best utilized in extended reach or horizontal wells
4. Coiled Tubing
Premium coiled tubing for the most complex down hole applications
Technical experts will be on hand at the booth to answer questions and provide further information about Tenaris technology, in line with the conference's 'Total Value Drilling: Right People, Right Process, Right Technology' theme
CAPEX cuts - Boulder Steel Sharjah seamless tube finishing plant on hold - 06 Feb 2009 Boulder Steel said in its report for the quarter ended December 31st 2008 that following the annual general meeting for 2008, its 100% own Sharjah Finishing Plant project has been put on hold.
The release added that it is currently evaluating several alternatives concerning the future of the project.
Nickel rises on LME on speculation surplus is being curbed - 06 Feb 2009 Bloomberg reported that nickel rose for a third day in London on speculation production cuts are starting to curb a surplus of the metal used mostly in stainless steel. Aluminum climbed to the highest in two weeks.
As per report, supplies of nickel in warehouses monitored by the London Metal Exchange fell by 114 tonnes to 83,964 tonnes, narrowing this year's climb to 7.1%. Stockpiles are up by 47% for copper and 22% for aluminum over the same period. BHP Billiton Limited closed an Australian nickel mine last month after prices plunged.
Mr Daniel Smith analyst at Standard Chartered Plc in London said that "Inventories of nickel are not rising as sharply as the other metals, suggesting the supply demand balance for nickel has stabilized a bit. We are not looking for a huge surplus this year because supply has been cut back so sharply."
Nickel for delivery in three months gained USD 145 or 1.3% to USD 11,750 a tonne, paring a climb of as much as 3.8%. The contract has added 4.9% this week. Reductions in output are greater for nickel than any other metal, equal to almost 14% of last year’s production. Nickel supply will exceed demand by 50,000 tonnes in 2009.
Mr Michael Widmer analyst at BNP Paribas SA in London said that "Deliveries into LME inventories are set to subside. There is no need for those producers who cut to deliver any longer into warehouses."
(Sourced from www.bloomberg.net)
CAPEX cuts - Nippon Mining to reduce investment in 2009 - 06 Feb 2009 Nippon Mining Holdings has announced that it will reduce the investment by around JPY 40 billion in fiscal 2008 from the original plan.
Nippon Mining tries to improve the profitability under the severe business condition through the cost improvement actions including pay cut for management and companywide cost cutting.
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