| Price Index - India | | | | 12-Feb | 11-Feb | Change | | ILPPI | 6699 | 6611 | +88 | | IFPPI | 6542 | 6514 | +28 | | INDSPI | 6624 | 6565 | +59 | | What is it? | | Poll Results | | Chinese steel mills would reduce export levels to regain quantities? | | Yes | 56% | | No | 30% | | Can't Say | 14% | | View Current Poll | | Currency | | AUD | 1.5331 | | BRL | 2.2750 | | CAD | 1.2439 | | CNY | 6.8229 | | EUR | 0.7775 | | GBP | 0.6996 | | INR | 48.8658 | | JPY | 90.2249 | | RUB | 34.6571 | | USD | 1.0000 | | ZAR | 9.9628 | | View Current Currency | | Metal Rates Cash Seller & Settlement | | Zn | USD 1121 | | | Ni | USD 10130 | | | Sn | USD 11200 | | | Al | USD 1340 | | | Cu | USD 3350 | | | View Current Metal Rates | | Steel Futures | | NCDEX | 23900 (19-Dec) | INR | 0 |  | | DGCX | 463 (11-Feb) | USD | -25 |  | | LME-M | 320 (11-Feb) | USD | 0 | | | LME-F | 310 (11-Feb) | 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
Indian steel price index continues recovery - 13 Feb 2009 The domestic Indian Steel prices improved for the second day on February 12th 2009. The Indian Long Product Price Index (ILPPI) improved by 88 points and the Indian Flat Product Price Index (IFPPI) increased by 28 points. The overall Indian Steel Price Index (INDSPI) improved by 60 points:
| Class | 11-Feb | 12-Feb | Change
| | ILPPI | 6611 | 6699 | 88
| | IFPPI | 6514 | 6542 | 28
| | INDSPI | 6565 | 6624 | 60
| | | | |
ILPPI - Long Product Price Index
IFPPI - Flat Product Price Index
INDSPI - Indian Steel Price Index
| Category | 11-Feb | 12-Feb | Change
| | PI - TMT | 6386 | 6483 | 97
| | PI - WRC | 7086 | 7184 | 99
| | PI - Angle | 6245 | 6324 | 79
| | PI - Channel | 6291 | 6339 | 48
| | PI - Joist | 5873 | 5906 | 32
| | | | |
| Category | 11-Feb | 12-Feb | Change
| | PI - Narrow Plates | 6153 | 6187 | 34
| | PI - Wide Plates | 6532 | 6562 | 30
| | PI - Hot Rolled | 6350 | 6384 | 34
| | PI - Cold Rolled | 7073 | 7092 | 19
| | PI - Galvanized | 6780 | 6780 | 0
| | | | |
To know more about these indices please visit
http://steelprices-india.com/spi_services/spi.html
To keep tab on steel prices in India on daily basis, 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)
Alang ship breakers booming in times of recession - 13 Feb 2009 Exim News Service reported that the global recession and the resultant decline in export and import business, as also falling freight rates, which has led to idling of ships in several countries have all turned out to be a boon for the ship breaking industry at Alang.
As many as 125 vessels from all over the world are now lined up at Alang ship breaking yards, as against just 40 vessels in the whole of 2008.
Mr Vishnu Gupta President of the Alang Ship Breaking Industry Association said that the recovery of steel scrap this year was expected to double to about 12 million.
Mr Gupta said that "However, breaking charges have fallen to USD 250 to USD 300 a tonne from USD 600 a tonne in 2008."
On an average, a ship weighs about 10,000 tonnes to 30,000 tonne, depending upon its capacity. More than 600 ships are reportedly available for breaking in the international market because of the recession and the yards are getting set to establish a new record in dismantling ships in 2009.
However, because of the drop in steel prices, scrap realizations have halved to INR 17,000 a tonne from INR 34,000 a tonne in 2008.
(Sourced from Exim News Service)
Siemens to provide high voltage power distribution package for SAIL RSP - 13 Feb 2009 The Industry Solutions Division of Siemens Ltd of India has received an order from the Steel Authority of India Ltd to supply an extra high voltage power distribution package to the Rourkela Steel Plant for augmentation of their existing main Step Down Substations and installation of new MSDs. The value of the order is INR 2116 million, more than EUR 30 million.
The Steel Authority of India is planning to enhance the production capacity of its Rourkela Steel Plant, Orissa from 1.9 million tonnes to 4.5 million tonnes. This also requires the extension of the existing power supply. The power distribution package provided by Siemens will convert the power received from the grid at 220kV level and feed it into the rolling mills and the oxygen plant. The Rourkela Steel Plant is scheduled to be commissioned by the end of 2010.
The scope of work for this order includes design & engineering, supply, civil work, erection, testing and commissioning of 220kV gas insulated switch gear (GIS), 132kV GIS and AIS switchyards, 33kV GIS,11 kilomates 132kV transmission line and substation automation system for individual substations. Further, this project also encompasses the setting up of 132kV Transmission Lines, interconnecting new and existing substations and strengthening the 32kV ring networks in order to have a better power flexibility.
Mr Robert Wagner executive vice president of Industry Solutions Siemens Ltd said that “This order for the Rourkela Steel Plant is an important step forward in the enduring partnership that SAIL shares with Siemens. All SAIL plants are now equipped with a range of Gas Insulated Switchgears from Siemens, and this is a true testimony of the confidence that SAIL has in Siemens’ ability to deliver to their expectations. This order further reaffirms the edge that our products and solutions have in the power distribution market.”
Indian mills export booking levels for HDG and PPGI - 13 Feb 2009 As per market sources Indian galvanizers have booked substantial quantities for exports to Europe and Middle East Asia during last 15 to 20 days for March shipments
1. HGD 0.5 or 0.6mm Z120 EUR 510 per tonne to EUR 515 per tonne CFR Belgium
2. HDG 0.6 millimeter Z 100, EUR 487 per tonne CFR FO Antwerp
3. HDG 0.60 millimeter Z 140, USD 665 per tonne CFR CY Jebel Ali
4. HDG 0.3 millimeter Z 100, USD 720 per tonne CFR CY Dammam
5. Galvalume 0.25 millimeter AZ 70, USD 820 per tonne CFR CY Constanta
6. PPGI 0.3 millimeter Z 100 base, USD 970 per tonne CFR CY Constanta
7. PPGI 0.5 millimeter Z 100 base, EUR 664 per tonne CFR FO Antwerp
8. PPGI 0.5 millimeter Z 120 base, USD 850 per million tonne CFR CY Ashdod
It is understood that most of these orders are for March shipment.
To keep tab on steel prices in India on daily basis, 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)
POSCO war zone - Only INR 176 crore spent so far - 13 Feb 2009 Economic Times quoted Mr Pradip Kumar Amat steel and mines minister of Orissa as saying that POSCO India has so far spent only INR 176 crore of the planned INR 51,000 crore investments in the proposed mega steel plant in Orissa, considered the largest FDI in the country.
Mr Amat said that this worked out to only 0.34% of its planned investment for the 12 million tonne per annum Greenfield steel plant near Paradip.
He said that the state government has already recommended POSCO-India's name for the prospecting licence over iron rich Khandadhar mines, adding that the Centre would take a final decision in this regard.
On forest land diversion proposal of POSCO-India, he added that out of the 4004 acres required by it, nearly 2900 acres were identified as forest category.
Mr Amat said that "Though Supreme Court had already cleared the forest land diversion proposal, the Forest and Environment Ministry was yet to accord its permission."
Though, POSCO-India signed a MoU with the state government way back in June 2005, it has so far failed to acquire the land for the project due to stiff opposition from the public.
(Sourced from Economic Times)
SAIL pays interim dividend of INR 460.81 crore to government - 13 Feb 2009 Steel Authority of India Limited handed over a cheque of INR 460.81 crore to the government as the interim dividend for the year 2008-09.
Mr Ram Vilas Paswan union minister for steel, chemicals & fertilizers received the cheque from Mr SK Roongta the chairman of SAIL.
SAIL had earlier announced interim dividend of 13% for FY 09. Receiving the cheque
Mr Jitin Prasada minister of state for steel and Mr PK Rastogi steel secretary were also present on the occasion.
Indian silicon metal imports keep soft on Chinese offer hike - 13 Feb 2009 It is reported that Chinese silicon metal suppliers hiked their offer price this week, but Indian importers still hold the wait-and-see attitude and hesitate to make the purchases. Chinese suppliers said the resources are tight in the market at the moment.
According to an Indian importer, currently the prices of Chinese silicon 553 and silicon 441 are posted at USD 1700 per tonne to USD 1740 per tonne CIF Bombay, up by USD 50 per tonne from that before the Chinese New Year. The importer said "We don't have any inventory now and are not going to import products in the near future, as there is no order received yet. His company imported a small amount of silicon metal from China before the Spring Festival.
Another Indian trader also confirmed that they have been noticed the price increase by the Chinese suppliers. He attributed the price hike to the comparative supply tight in the Chinese market. In fact, most of the local silicon metal importers don't have sound orders at the present, so the silicon metal imports won't be active in the short term.
(Sourced from MySteel.net)
Visit www.Mysteel.net for real time access to China steel news!
Kalinga Nagar industries seek intervention on OMC iron ore pricing - 13 Feb 2009 Express News Service reported that Industries in the Kalinga Nagar Industrial Complex have sent an SOS to Mr Naveen Patnaik CM of Orissa seeking his immediate intervention into the issue of arbitrary price fixation of iron ore by OMC which has pushed several steel units to the brink of closure.
OMC, the main supplier of iron ore and the sole supplier of chrome ore to industries in the State has deviated from the 3 year old system of accepting highest bidder rates and decided to impose its own rates arbitrarily for the raw materials.
Though, it agreed for a re tender keeping in view the economic recession in November 2009, it surprisingly fixed iron ore price at INR 1,709 against the H1 rate of 1,179 for December. For the period from January to February 15th 2009, it continued with the iron ore rate against the H1 rate of INR 911 and for 50% to 52% grade chrome ore it declared the price of INR 4,869 over H1 rate of INR 2,835.
The OMC has also fixed various rates for various regions. While the same grade of iron ore at Barbil is fixed at INR 1,150, it is INR 1,709 at Daitari as the raising and production costs are almost same.
Mr PK Kandoi president of Kalinga Nagar Industries Association said that with OMC resorting to such monopolistic tactics, the Q4 of the 2008-09 fiscal could spell disaster for the units.
The Industries body has called upon the government to take a proactive approach by instructing OMC to fix prices as per the market condition and save the show price industrial hub of the state from certain death.
And with OMC resorting to such monopolistic tactics the fourth quarter of 2008-09 fiscal could spell disaster for the units, Kalinganagar Industrial Complex. There are 9 Industrial establishments in Kalinganagar Industrial complex and around INR 15,000 crore has been invested and around 30,000 families depends on it.
(Sourced from Express News Service and Orissa Diary)
Directory of Fasteners Units in India - 13 Feb 2009 Published in January 2009, 'Directory of Fastners Units in India ' has been comprehensively researched and prepared, to bring you a fully up to date guide to Indian Fastners industries.
Why spend hundreds of hours searching for new contacts? Invest in a copy TODAY!
Content:
This report covers name of 274 fastners units of India in alphabetical as well as location wise order. Look at the information you'll get in the ' Directory of Fastners Units in India’
• Company name -274 entries
• Address-274 entries
• Email-157 entries
• Phone number-262 entries
• Fax number -231 entries
• Mob -159 entries
Format:
PDF File
Total no of pages - 156
Delivery by Email on receipt of payment
Price:
USD 250 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, which will send you an invoice of the report.
Nakhodka port makes first steel shipment to Mumbai - 13 Feb 2009 It is reported that a new shipping direction Nakhodka to Mumbai was opened in Nakhodka sea port recently
The first ship Sea Swift was loaded with 25 000 tonne of HR and CR coils and sheets.
This is a transit cargo being shipped from Kazakhstan via Nakhodka. Special warehouse facilities for HR steel were built in the port to protect steel from moist and atmospherical condensation.
Nakhodka Commercial Sea Port is main stevedoring company of Nakhodka port. The port belongs to Evraz Group and is the port of departure of the group’s mills to Middle East countries. The port is connected to all destinations of Eurasia continent by Trans-Siberian railway belonging to RZD and plays a significant role in Asia-Europe-Asia transportation system. More than 40 regular ways connect Nakhodka port with world ports. The port is linked with Vladivostok international airport with a motorway. The port’s facilities let handle more than 1500 large size vessels a year.
Exported and imported cargos such as ferrous and non ferrous metals, grains, chemicals, coal and equipment are transshipped in the port. Cargo turnover of the port in 2008 made 7 million 367.3 thousand tonne.
(Sourced from Port News)
TMT and structural prices shows further improvement - 13 Feb 2009 The prices of long products exhibited firmness at most of the locations on February 12th 2009.
Kolkata | Item | Grade | Size | Change | %
| | TMT | Fe 415 | 12mm | 441 | 1.4%
| | WRC | SWR14 | 5.5/6 | 1058 | 3.7%
| | CHNL | GR A | 75/100 | -441 | -1.3%
| | JSTI | GR A | 250x125 | 110 | 0.3%
| | | | | |
Change is on February 12th as compared to February 11th 2009
Change is in INR per tonne
Mumbai| Item | Grade | Size | Change | %
| | TMT | Fe 415 | 12mm | 631 | 2.0%
| | ANGL | GR A | 65x6 | 1262 | 4.0%
| | CHNL | GR A | 75/100 | 1262 | 4.0%
| | JSTI | GR A | 250x125 | 1262 | 3.9%
| | | | | |
Change is on February 12th as compared to February 11th 2009
Change is in INR per tonne
Raipur| Item | Grade | Size | Change | %
| | ANGL | GR A | 65x6 | 520 | 1.8%
| | CHNL | GR A | 75/100 | 520 | 1.7%
| | JSTI | GR A | 250x125 | 520 | 1.7%
| | WRC | SWR14 | 5.5/6 | 436 | 1.6%
| | | | | |
Change is on February 12th as compared to February 11th 2009
Change is in INR per tonne
Mandi| Item | Grade | Size | Change | %
| | ANGL | GR A | 65x6 | 312 | 0.9%
| | CHNL | GR A | 75/100 | 624 | 1.8%
| | JSTI | GR A | 250x125 | 0 | 0.0%
| | | | | |
Change is on February 12th as compared to February 11th 2009
Change is in INR per tonne
Kanpur| Item | Grade | Size | Change | %
| | TMT | Fe 415 | 12mm | 1000 | 3.2%
| | ANGL | GR A | 65x6 | 1000 | 3.2%
| | JSTI | GR A | 250x125 | 1200 | 3.8%
| | WRC | SWR14 | 5.5/6 | 0 | 0.0%
| | | | | |
Change is on February 12th as compared to February 11th 2009
Change is in INR per tonne
Delhi| Item | Grade | Size | Change | %
| | TMT | Fe 415 | 12mm | 1280 | 4.1%
| | WRC | SWR14 | 5.5/6 | 680 | 2.2%
| | CHNL | GR A | 75/100 | 0 | 0.0%
| | JSTI | GR A | 250x125 | 0 | 0.0%
| | | | | |
Change is on February 12th as compared to February 11th 2009
Change is in INR per tonne
To keep tab on steel prices in India on daily basis, 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)
RINL unions to demonstrate for captive iron ore mines - 13 Feb 2009 BL reported that the Rashtriya Ispat Nigam Limited is incurring a heavy loss due to non allotment of captive iron ore mines by the Union Government, especially during the current economic recession and the long pending demand should be immediately met.
Mr Ch Narasinga Rao the district secretary of the party that said at a press meet here the steel plant was spending an additional INR 5,000 per tonne of iron ore in steel manufacture, in comparison with the other steel plants public and private.
He said that “It is a very heavy burden on the plant and it may push the plant into the red again, as in the late nineties, if the Union Government does not attend to the problem of captive mines.”
Mr Rao said that it was regrettable that private steel plants such as Brahmani Steels and POSCO were being given captive iron ore mines but the just demand of the Visakhapatnam steel plant for mines is being ignored. He said that the RINL was expanding its capacity and the future of the project depended on captive mines.
(Soured from Business Line)
Plate and HRC prices shows improvement in North and East - 13 Feb 2009 Kolkata | Category | Grade | Size | Change | %
| | Narrow Plates | GRA | 8x1.25 | 436 | 1.6%
| | Wide Plates | GRB | 12-20x2.5 | 349 | 1.3%
| | Hot Rolled | Tube | 2.5x1250 | 349 | 1.3%
| | Cold Rolled | DSK | 0.63x1000 | 436 | 1.4%
| | Galvanized | 100Gms | 0.4 | 0 | 0.0%
| | | | | |
Change is on February 12th as compared to February 11th 2009
Change is in INR per tonne
Delhi| Category | Grade | Size | Change | %
| | Narrow Plates | GRA | 8x1.25 | 453 | 1.6%
| | Wide Plates | GRB | 12-20x2.5 | 453 | 1.6%
| | Hot Rolled | Tube | 2.5x1250 | 453 | 1.6%
| | Cold Rolled | DSK | 0.63x1000 | 0 | 0.0%
| | Galvanized | 100Gms | 0.4 | 0 | 0.0%
| | | | | |
Change is on February 12th as compared to February 11th 2009
Change is in INR per tonne
Ludhiana| Category | Grade | Size | Change | %
| | Patra | | | 453 | 1.7%
| | HRC | Tube | 2.5x1250 | 45 | 0.2%
| | | | | |
Change is on February 12th as compared to February 11th 2009
Change is in INR per tonne
To keep tab on steel prices in India on daily basis, 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)
Reliance Power gets LoI for Tilaiya UMPP - 13 Feb 2009
The Letter of Intent for awarding the Ultra Mega Power Project at Tilaiya, Jharkhand was handed over to the successful bidder, namely, Reliance Power Limited.
This is the third UMPP awarded to the Reliance Power Ltd, the other two being Sasan in Madhya Pradesh & Krishnapatnam in Andhra Pradesh. Another UMPP at Mundra in Gujarat is being developed by TATA Power Ltd.
The government release added that “Reorganizing the fact that economies of scale leading to cheaper power could be secured through large size power projects and for introducing the efficient super critical technology in a big way, a unique initiative had been launched for development of UMPPs under tariff based international competitive bidding route.”
Development of 4000 MW power project through a tariff based bidding process is the first of its kind in the world.
The financial and technical bids for the coal based thermal power project were invited on December 29th 2008, and the final financial bids were to be opened within 15 days. 5 companies NTPC, Reliance Power, Lanco Infratech, Jindal Power and Sterlite Energy, of the 11 pre-qualified bidders submitted their bids for the project.
BHEL order book is bulging despite slowdown - 13 Feb 2009 ET reported that the latest quarterly results of power equipment major BHEL seems to reflect sectoral woes. It has posted a virtually flat bottom line growth despite a seemingly impressive order book and lots of projects in the pipeline. It suggests slowdown in project implementation and almost certainly a cash crunch in the state power utilities.
As per report, the fact is BHEL’s order book of projects adds up to INR 1.1 million as of December. It’s about 5 times last year’s sales. Yet its net profit in the last quarter, at INR 791 crore, grew a lowly 2.4%, over the like period last year. It points at slow green-field expansion of power capacity pan India.
The report added that it may well mean the welcome spurt in power capacity addition seen in the previous 2 years albeit due to bunching of long-delayed projects has begun to decelerate this fiscal. What’s required is proactive policy to closely monitor implementation and come up with innovative follow through, including brown field capacity addition in the sector.
But the urgent need seems to be a short-term course correction say by tapping additional financing options if necessary. There may be a case for top up funding by the Power Finance Corporation especially for power projects nearing completion but not quite operational for lack of requisite funds.
Further, various options to retrofit existing power plants need to be explored. The fact is 70% to 80% of our coal fired power stations are of 20 years or older vintage, with consequent lackluster thermal efficiency levels. The way ahead ought to be to diffuse commercially proven coal gasification and attendant clean coal technologies in brown field sites, so as to rev up the average efficiency levels in generating power.
Specifically, we need to commission studies to find out the viability of adding gasification blocks to existing steam blocks of power stations. Concurrently, power sector reforms must be fast forwarded to plug routine revenue leakages in distribution.
Meanwhile, it’s on account of the huge and mounting commercial losses in power supply that state power utilities remain financially weak, cash strapped and unable to fast forward project scheduling.
(Sourced from Economic Times)
Slowdown signs - India may miss FDI target in 2008-09 - 13 Feb 2009 The Financial Express reported that India is likely to miss the foreign direct investment target of USD 35 billion for the current fiscal due to the global credit squeeze.
Mr Kamal Nath Commerce and Industry Minister said that the country would be able to receive USD 30 billion foreign investment inflows in the current financial year. He said that "We will be able to go to USD 30 billion."
However, the FDI inflows of USD 19.7 billion in April to November have made it clear that this fiscal's target is too ambitious to achieve given the recession in the US and other developed economies, which are the major sources of cross border investment.
As per report, India needs more than USD 10 billion in the last 4 months of the current fiscal ending March to achieve the full year figure of USD 30 billion. Fund flow has trickled in recent past and the country received just USD 1 billion FDI in November 2008. In October this fiscal, FDI slipped to USD 1.4 billion after maintaining robust inflows till September with a monthly range of USD 2.5 billion to USD 3 billion.
Experts said that it would be difficult for India to achieve the FDI target. Mr Rajeev Kumar director of ICRIER said that "We are certainly not going to meet the target. Even FDI inflows could be weaker in the next fiscal as well."
(Sourced from The Financial Express)
Scrap, sponge iron and pencil ingot prices increase further - 13 Feb 2009 It is reported that steel making input prices continued upward march on February 12th 2009
1. Scrap improved by 12% at Kolkata
2. Sponge shows significant improvement by up to 8% in Kolkata.
3. Ingot prices improved in all regions by up to 3.5% in Mumbai.
Melting scrap
80:20
HMS | Location | Change | %
| | Kolkata | 2212 | 12.4%
| | Mandi | 523 | 2.7%
| | Mumbai | 0 | 0.0%
| | | |
Change is on February 12th as compared to February 11th 2009
Change is in INR per tonne
Sponge iron| Location | Change | %
| | Kolkata | 1087 | 7.7%
| | Raipur | 500 | 3.4%
| | | |
Change is on February 12th as compared to February 11th 2009
Change is in INR per tonne
Pencil ingot| Location | Change | %
| | Mumbai | 800 | 3.5%
| | Mandi | 453 | 1.9%
| | Raipur | 436 | 2.1%
| | Kanpur | 436 | 2.0%
| | Kolkata | 543 | 2.4%
| | Ghaziabad | 500 | 2.1%
| | Muzzafarnagar | 261 | 1.1%
| | Ahmedabad | 0 | 0.0%
| | | |
Change is on February 12th as compared to February 11th 2009
Change is in INR per tonne
To keep tab on steel prices in India on daily basis, 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)
FICCI Annual Award to Hindustan Zinc - 13 Feb 2009 Hindustan Zinc recently received the prestigious Annual FICCI Award 2007- 08 in the category of Rural and Community Development Initiatives. The award was presented by Mr Pranab Mukherjee Hon'ble Union Minister of External Affairs and received by Mr HK Mehta and Mr Ahmar Sultan from Hindustan Zinc. The award ceremony was held at FICCI Golden Jubilee Auditorium, New Delhi, in the presence of various representatives of the Industry.
Hindustan Zinc’s initiatives in rural and community development areas have been impacting the lives of over 500,000 people in the State of Rajasthan. Mid day Meal to about 200,000 primary and secondary school going children, 400 Anganwadi Centers serving about 16,000 children between the age group of 0 to 6 years, computer education in over 200 schools with distribution of 1,000 computers benefiting 48,000 children, 215 Self Help Groups bringing women empowerment, infrastructure development in rural areas like water shed projects, water tanks, roads etc have brought a significant improvement in the lives of rural people living around the Company's mines and smelting units in Rajasthan. The Mid-Day Meal Project has not only improved the nutrition value of the school going children but also the attendance of girl students in the school to up to 70%. The overall attendance has improved to 90%.
Hindustan Zinc has been working in deep rural areas with agriculture farmers as well to uplift their economic conditions by providing better quality seeds and encouraging them to cultivate cash rich crops.
However, Vedanta Group is in business of aluminium, zinc, lead, copper and power generation and has incorporate CSR activities as part of business plan. Several projects have been initiated under the Corporate Social Responsibility in Lanjigarh, Kalahandi, Jharsuguda in the State of Orissa in Tamil Nadu, Chattisgarh, Goa and in the State of Rajasthan, in India.
FICCI has taken into account the initiatives taken by Hindustan Zinc in deep rural areas and making the rural communities self reliant. The FICCI Annual Award 2007- 08 is a significant recognition for outstanding achievement and contribution by Hindustan Zinc in upbringing the lives of rural people.
India shipping firms want service tax to go - 13 Feb 2009 Reuters reported that Indian shipping firms have sought exemption from service tax on input services in the federal interim budget 2009 to be presented on February 16th 2009.
Indian National Shipowner’s Association said that Indian shippers pay a service tax of 12.36% for some 27 services including ship management, manpower recruitment, brokerage, which firms overseas do not pay. Indian container operators providing services on time charter pay a similar service tax of 12.36%, which their foreign counterparts do not pay.
Mr SS Kulkarni secretary general of INSA said that "On an average, the effective tax on Indian companies is 3% to 4% more compared to the foreign ones. This is an inherent handicap for Indian companies this tax."
Mr Kulkarni said that higher taxes skew the playing field for local companies against foreign shipping firms, who do not have to pay any tax for shipping cargoes, hurting profitability.
He said that "The shipping industry operates on a global level. We are only asking the government to make it equally competent for us. There is 100% FDI for shipping in India, then why don't foreign lines flag ships from here?"
Analysts said that Mercator Lines Ltd, which has diversified into mining recently, floated a subsidiary in Singapore in 2007, due to favorable tax regime there.
(Sourced from Reuters)
Orissa provides over 1,800 acres to VAL - 13 Feb 2009 Express News Service quoted Mr Biswa Bhusan Harichandan industries minister of Orissa as saying that out of the 2,310 acres of land sought by Vedanta Aluminium Limited for its alumina plant at Lanjigarh in Kalahandi district, 1,805.81 acres have been provided.
Mr Harichandan said that out of this 390.29 acres were government land whereas 1,415.52 acres were private. He said that for the VAL, 814.68 acres were acquired from 562 Scheduled Tribe people.
Similarly, 2,863.99 acres were provided to Utkal Aluminium International Limited at Kashipur of which 2,153.93 acres were private land. He said that 848.89 acres of land was acquired for the project from 865 tribal people.
He said that 1,750.08 acres of land was provided to Aditya Aluminium Limited for its plant at Kansariguda in Rayagada district. This included 1,224.22 acres private land including 779.11 acres belonging to 302 STs.
Mr Harichandan, however, said that no alternative land was provided to the ST people in lieu of the ceded land.
Mr Pradip Amat minister of State for Steel and Mines said that 48 MoUs were signed by the State Government for establishment of steel plants in the State. Out of this, 10 are large with more than 3 million tonne capacity per annum. He said that direct employment opportunities for 61,000 persons will be created with the completion of the projects.
(Sourced from Express News Service)
Rio Tinto announces strategic partnership with Chinalco - 13 Feb 2009 The boards of Rio Tinto plc and Rio Tinto Limited announced that they are unanimously recommending to shareholders a transaction with Aluminium Corporation of China a leading Chinese diversified resources company.
The release said that “The transaction will forge a pioneering strategic partnership through the creation of joint ventures in aluminium, copper and iron ore as well as the issue of convertible bonds to Chinalco which would, if converted, allow Chinalco to increase its existing shareholding in Rio Tinto.”
The transaction is intended to position Rio Tinto to lead the resources industry into the next decade and beyond by ensuring the continuity of its strategy with the benefit of Chinalco's relationships, resources and capabilities.
The Rio Tinto Boards have extensively considered a range of strategic options, and have concluded that the opportunity offered by the strategic partnership with Chinalco, together with the value on offer for the investments by Chinalco in certain of Rio Tinto's mineral assets and in the convertible bonds, is superior to other identified options and offers greater medium term certainty and long term value for Rio Tinto's shareholders.
Transaction highlights
1. Delivers substantial aggregate cash proceeds of USD 19.5 billion through:
(a) Investment by Chinalco in certain aluminium, copper and iron ore joint ventures totaling USD 12.3 billion
(b) The issue of subordinated convertible bonds in two tranches with conversion prices of USD 45 and USD 60 in each of Rio Tinto plc and Rio Tinto Limited for a total consideration of USD 7.2 billion. If converted, the subordinated convertible bonds would increase Chinalco's current shareholding to 19.0% in Rio Tinto plc and 14.9% in Rio Tinto Limited, equivalent to an 18.0% interest in the Rio Tinto Group
2. Raises significant funds at a time when financial markets are distressed, materially reducing Rio Tinto's indebtedness, strengthening its balance sheet and increasing its flexibility to pursue attractive investment opportunities throughout the cycle
3. Creates a pioneering strategic partnership with a leading Chinese diversified resources company:
4. Rio Tinto will benefit from Chinalco's strong relationships within China, which Rio Tinto believes will continue to be the main driver of growth in commodity markets over the longer term
5. The strategic partnership creates the opportunity for joint ventures and project development in emerging economies. The two groups bring complementary skills, including Chinalco's capabilities to deliver infrastructure projects and Rio Tinto's leadership in operational excellence and sustainable development
(a) Rio Tinto will enter into a landmark joint venture for exploration in China, in partnership with Chinalco
(b) The Chinalco relationship will facilitate access for Rio Tinto to funding for project development from Chinese financial institutions
6. Chinalco will be entitled to nominate two new non-executive Board members to add to the fifteen current Board members of Rio Tinto. Independent non-executive directors will continue to comprise a majority of the Rio Tinto Boards, consistent with corporate governance best practice
7. Rio Tinto retains operational control of the joint venture assets, with clear governance arrangements and continued commercial marketing of joint venture product while maintaining its commitment to best practice and sustainable development
8. The transaction is subject to approval by the shareholders of Rio Tinto, governments and other regulators
The Boards of Rio Tinto plc and Rio Tinto Limited propose unanimously to recommend that shareholders vote in favor of the resolutions to be proposed at the shareholders' meetings in order to effect the transaction.
Mr Paul Skinner Chairman of Rio Tinto said "This transaction will deliver superior value for Rio Tinto shareholders. Chinalco's cash investment of USD 19.5 billion will strengthen Rio Tinto's balance sheet, increase our flexibility to deliver growth as markets recover and position Rio Tinto for the next decade and beyond. He said that we have long recognized and welcomed the growing participation of China in the global economy and the opportunities this presents to Rio Tinto. We believe this transaction is a logical step in advancing our capability in the Chinese market and the Boards of Rio Tinto recommend it to shareholders. Chinalco's investment is a clear vote of confidence in Rio Tinto's strength, its growth prospects and the outlook for the commodities we produce."
Mr Xiao Yaqing President of Chinalco said "This transaction follows our acquisition of a significant stake in Rio Tinto in February 2008 which laid a solid foundation for our broader strategic partnership. It reflects our continued confidence in the long-term prospects of the industry and the Chinese economy, the strength of Rio Tinto's world-class management team and its long term growth prospects. Our objectives are to seek commodity and geographic diversification, with a view to achieving long term financial returns from our investments.
He said that "The strategic partnership with Rio Tinto is a perfect fit with these goals. It aligns us with a leading global diversified miner with superb tier one assets and a track record of innovation. It also allows Chinalco a significant role in a strong industry with excellent growth prospects and direct economic exposure to Rio Tinto's leading aluminium, copper and iron ore assets. With the portfolio of these global assets, Chinalco will be better positioned to serve its customers in China and globally. We will embrace Rio Tinto's expertise in sustainable development, and with our complementary areas of expertise will combine to bring the best of both to project development. This strategic partnership represents a key step in Chinalco's development into one of the world's leading natural resources companies."
Mr Tom Albanese CEO of Rio Tinto said "Since Chinalco made its initial investment a year ago, it has become clear to both companies that a partnership makes great strategic sense. Today's announcement is the culmination of many months of exploring how we might do this. Rio Tinto has over 20 years experience of joint ventures with Chinese partners and a proven track record of delivering value for our shareholders from existing joint ventures with customers. The transaction will forge a pioneering strategic partnership with one of China's leading and fastest-growing resource companies. Together we will create value from joint ventures and will have more options in project development and exploration - particularly in emerging economies. We will benefit from Chinalco's insight in China, the largest and the fastest growing market in the world for our products.
He said that "Chinalco has a strong commercial focus and an outstanding track record of growth and value creating investments. Together we will make both businesses stronger, to the benefit of shareholders and other stakeholders."
Global HRB spot prices eruption slows down again - 13 Feb 2009 SteelBenchmarker reported that the US hot rolled band spot price for February 9th 2009 dropped by 3.5% to USD 554 per ton, FOB the mill for the thirteenth consecutive, world export HRB price dropped by 2.5% to USD 468 per tonne FOB the port of export, for the second consecutive time, Chinese HRB ex works price dropped by 1.6% to USD 477 per tonne, after rising for the last five consecutive times and the Western European HRB dropped by 3.5% to USD 528 per tonne ex works for the fourteenth consecutive time.
USA
USD 554 per metric tonne FOB the mill
Down by USD 20 per tonne from USD 574 two weeks ago
Down by USD 649 per tonne from the peak of USD 1,203 on July 28th 2008
Down by USD 76 per tonne from the recent low of USD 630 on April 9th 2007
Down by USD 6 per tonne from the recent low of USD 560 on August 13th 2007
China
USD 477 per metric tonne, ex works
Down by USD 8 per tonne from USD 485 two weeks ago
Down by USD 256 per tonne from the peak of USD 733 on July 14th 2008
Down by USD 10 per tonne from the previous high of USD 487 on September 10th 2007
Up by USD 7 per tonne from the recent low of USD 470 on October 22nd 2007
Western Europe
USD 528 per metric tonne, ex works
Down by USD 19 per tonne from USD 547 two weeks ago
Down by USD 676 per tonne from the peak of USD 1,204 on July 14th 2008
Down by USD 168 per tonne from the previous high of USD 696 on June 11th 2007
Down by USD 135 per tonne from the recent low of USD 663 on July 23rd 2007
World Export Price
USD 468 per metric tonne, FOB the port of export
Down by USD 12 per tonne versus USD 480 two weeks ago
Down by USD 645 per tonne from the peak of USD 1,113 on July 28th 2008
Down by USD 128 per tonne from the previous high of USD 596 on March 26th 2007
Down by USD 82 per tonne from the recent low of USD 550 on July 23rd 2007
SteelBenchmarker publishes steel benchmark prices for HRB, CR coil, rebar and standard plate in the US, Western Europe, mainland China, and the world export market every fortnight.
Rio Tinto 2008 net earning dip by 50% YoY - 13 Feb 2009 Highlights of performance
1. Record underlying EBITDA of USD 22.3 billion up by 60% from 2007.
2. Record underlying earnings of USD 10.3 billion up by 38% from 2007.
3. Net earnings of USD 3.7 billion down by 50% from 2007.
4. Net earnings include a charge of USD 8.4 billion related to asset impairments, partly offset by gains of USD 1.5 billion from asset divestments
5. Cash flow from operations up 64% to a record of USD 20.7 billion.
6. Net capital expenditure of USD 8.5 billion up by 71% from 2007.
7. Net debt reduced by USD 6.5 billion to USD 38.7 billion at December 31st 2008.
8. USD 3 billion of divestments during 2008; agreement to sell potash assets and Brazilian iron ore operation for USD 1.6 billion post year end.
9. Full year dividend maintained at 136 US cents
10. Rio Tinto Alcan integration achieved synergies of USD 585 million in 2008, ahead of schedule and on track to deliver USD 1.1 billion of after tax synergies in 2010 as planned.
11. Record production achieved in 2008 in iron ore, bauxite and alumina, borates, hard coking coal and US coal.
Mr Paul Skinner chairman of Rio Tinto commented that “Although the condition of the global economy and of demand for our products deteriorated very rapidly in the fourth quarter of 2008, the Group nevertheless registered record underlying earnings of USD 10.3 billion for the year, a rise of 38% on the prior year. The Group benefited from the quality of its assets and its strength in the bulk commodities of iron ore and coal, which tend to be priced on an annual basis. These helped to offset steep falls in the price of traded metals such as copper and aluminium.”
He added that “Nevertheless, we recognize that the metals environment has weakened significantly, and so, as a result of our annual impairment testing, the Group’s aluminium businesses have been written down by USD 7.9 billion. We believe Rio Tinto Alcan remains a long term, value accretive investment providing aluminium industry leadership. Its bauxite reserves, strong refining capability, low cost smelting assets and increasingly attractive hydro power support its leading competitive position.”
Mr Tom Albanese CEO of Rio Tinto remark that “These record results demonstrate the outstanding value that Rio Tinto’s assets and long term investments generate when markets are buoyant, with cash flow from operations in excess of USD 20 billion in 2008. As a consequence, the Group has been able to reduce net debt by USD 6.5 billion during the year from free cash flow and divestment proceeds.”
He added that “Given the current uncertain economic conditions and the unprecedented rate of deterioration in our markets and prices, we are now focusing our efforts on maximizing and conserving cash generation and paying down debt. In December, as part of our commitment to reduce net debt by USD 10 billion in 2009, we announced that capital expenditure for 2009 will be reduced from over USD 9 billion to USD 4 billion and that controllable operating costs will be reduced by at least USD 2.5 billion per annum in 2010, to include a global headcount reduction totaling 14,000 contractor and employee roles worldwide. Since then we have terminated and suspended a number of programs. However, some of these will be reviewed in the light of the strategic partnership with Chinalco.”
FIS providing iron ore swap reports - 13 Feb 2009 UK based Freight Investor Services is providing a daily update on Iron ore Swaps referred to as IOS are cash settled OTC financial tools which are incorporated for hedging purposes within a company’s strategic environment.
Market swings can put businesses in jeopardy which sets price risk management as a necessity.
Having a futures market enables price discovery, meaning that the trends and price behaviors of the futures market provide an insight in to where the market believes the future price will be at a given date. Reading our forward curve may provide a visibility opportunity for the iron ore related industries as the future prices provide elements to grasp market direction.
The concept behind hedging is in essence offsetting the price risk on the physical market by entering an equivalent paper transaction.
The market functions via buying and selling paper contracts.
Ms Gabrielle Richou of FIS said that “We fully expect the natural players, producers, traders, steel mills to start to use actively their use of risk management tools such as IOS in order to provide stability in uncertain times.”
Freight Investor Services is a pioneer in developing hedging products and using its expertise to bring them to mature and sustainable levels. Efficient modern risk management stabilizes cash flows and mitigates exposure to price volatility. Indeed, the current market conditions only heighten the need for strategic risk management techniques.
To know more send a mail to editor@steelguru.com
Production pruning - Ukrainian Steel producers increase output - 13 Feb 2009 Ukrainian steel producers maintain the December-January trend of output growth in February.
This was noted at the meeting of metallurgy industry enterprises' representatives in Dnipropetrovsk on February 11th 2009.
The average daily pig iron output was 53,700, 60,200 and 70,200 tonnes in December, January and February to date, respectively. Currently 65% of blast furnaces, 75% of converters and 45% of open hearth furnaces are in operation.
According to the Millennium capital analyst “Despite the fact that average output in February is 70% compared to the same period of 2008, enterprises have already emptied warehouses of old inventories, reaching their optimal level. We see this news as Positive not only for Steel producers but also for the entire Ukrainian economy due to the metallurgy’s importance.”
(Sourced from Millennium capital)
ArcelorMittal SA FY 08 earnings up by 65% YoY - 13 Feb 2009 ArcelorMittal South Africa has reported a 65% YoY increase in headline earnings for the 2008 financial year on the back of higher global steel prices early in the year but warned that earnings in the first quarter of 2009 would fall substantially. Headline earnings increased to ZAR 9.5 billion and revenue for the year ended December 31st 2008 rose by 36% YoY to ZAR 39.9 billion. For 2008, as a whole, the company’s sales volumes were down by 13% YoY.
ArcelorMittal SA said that a significantly improved income contribution from the Coke & Chemicals business, and higher gains on foreign exchange transactions and financial instruments also boosted earnings. However, it had experienced an extraordinary collapse in demand during the fourth quarter of 2008, as the impact of the global financial crisis filtered through to the South African economy.
Ms Nonkululeko Nyembezi Heita CEO of ArcelorMittal SA said that "The year started off well, with strong domestic demand for the first three quarters of the year, driven mainly by the increase in public sector infrastructure spending. However, the global financial crisis has become a global economic crisis and the contagion spread quickly to the South African market. This led to a sharp decline in demand in the fourth quarter, followed in short order by a collapse in steel prices worldwide."
In response to the global meltdown, ArcelorMittal SA had cut output drastically in the fourth quarter to match production with falling demand. Additional measures taken to combat the downturn include a 50% plus reduction in temporary and hired labor and a similar cut in selling, general and administrative expenses.
Ms Nyembezi Heita said that "The capital expenditure plan for the next 5 years has also been revisited, resulting in a significant decline in planned expenditure in 2009 and a shift in focus to projects aimed at improving safety and meeting legal environmental obligations. In the long term, ArcelorMittal South Africa remains committed to raising capacity from its present nameplate capacity of 8 million tonnes of liquid steel a year."
She further added that amid the challenge presented by volatile markets, the company would enter 2009 with a sound financial position, but would continue to emphasis cash and cost savings throughout its operations.
(Sourced from www.engineeringnews.co.za)
Alliance for American Manufacturing advocates Buy American - 13 Feb 2009 Alliance for American Manufacturing has released a statement regarding the House-Senate Conference Agreement and Buy America
Mr Scott Paul ED of AAM said that “Congress and the Administration have secured a major victory for American manufacturers and workers by preserving Buy America.”
He added that “Tax dollars in the economic recovery package will be invested in American made materials for public infrastructure and building projects, leading to the creation of new American manufacturing jobs.”
Mr Paul further said that “For 75 years, Buy America rules have maintained our ability to build and rebuild the American infrastructure. We commend the House, Senate, and President Obama for preserving that tradition and ensuring that manufacturing will share in the benefits of economic recovery.”
He concluded that “Buy America is good news for laid-off workers in construction and manufacturing, and good news for the global economy by helping to spur US growth.”
CISA wary about Buy American clause - 13 Feb 2009 Javno reported that China's steel industry is keeping a wary eye on the Washington's Buy American plan, as it could see sales hurt if imported steel is excluded from infrastructure projects funded by a USD 900 billion stimulus package.
Mr Shan Shanghua secretary general of the China Iron and Steel Association said "If Americans only buy American and Chinese only buy Chinese, what will be traded around the world. China's biggest steel product export to the US is steel pipe, but its mills also supply lower value construction steel to North America.”
Mr Qi Xiangdong, vice secretary general of CISA added that "We have to see how much infrastructure investment is included in the stimulus plan. If there is a lot, US steel demand will rise, and that will affect the pattern of import demand, not just from China, but from the rest of the world."
Due to a domestic stimulus package, Chinese prices are now above those of international markets, attracting imports and keeping exports firmly in check. But in the long run, China's immense steelmaking overcapacity means that its industry will have to rely on exports to stay profitable.
The US Senate this week voted to soften language in the original stimulus bill, which had required that all public works projects funded by the stimulus package use only US made iron, steel and manufactured goods.
(Sourced from javno.com)
The reports on steel, iron ore and projects from SNRSR are now cheap! - 13 Feb 2009 We are pleased to inform that the prices of the reports from Steel and Natural Resources Strategy Research have been slashed as follows:
1. In-depth analysis of steel projects in India
Author: Dr AS Firoz
Sep 2008 Edition: INR 10,000 or USD 200
Dec 2008 Edition: INR 15,000 or USD 300
(Original price: INR 50,000 or USD 1100)
This 115 page report with 35 tables, 12 charts, a number of annexure, three maps and an appendix looks at the steel industry’s future in India from a strategic point of view to guide the investors in the industry, capital goods industry, steel traders, raw materials suppliers and the policy makers in the government in their own individual planning for the future.
To know the details of contents
http://www.steelguru.com/reports/detail/Indian_Steel_Projects%253A_Ground_Reality%252C_Strategic_Issues_and_Opportunities.html
Report Summary
1. Published: Sep 2008
2. Format PDF File (Delivery by Email on receipt of payment)
3. Total no of pages - 115
2. Indian Steel: Opportunities and Strategic Options
Author: Dr AS Firoz
July 2008 edition: INR 5000 or USD 100
Sep 2008 edition: INR 7500 or USD 150
(Original price: INR 50,000 or USD 1100)
Indian Steel: Opportunities and Strategic Options provides you the valuable information on Indian steel market and is scenario. The report covers the reviews of the developments in Indian steel industry.
This report critically looks at the current situation in the industry, potential of the steel market growth in the medium term, growth plans of the individual major companies, demand and supply issues related to raw materials like coal and iron ore, competitive positioning of steel production in the country, socio economic and political factors which may have direct and indirect impact on the growth dreams of the Indian steel makers, etc among a large number of other relevant issues of strategic importance.
This report is the product of extensive and in depth analysis with incredible amount of time spent to put the numbers in perspective. There are neutral and frank expert views on matters which have drawn attention of the industry in the recent period.
To know the details of contents
http://www.steelguru.com/reports/detail/Indian_Steel%253A_The_Emerging_Reality.html
Report Summary
1. Published: July 2008
2. Format PDF File (Delivery by Email on receipt of payment)
3. Total no of pages -178 (103 analytical perspective + 25 Tables + 50 Charts)
3. Iron Ore in India: The Present and the Future of It
Author: Dr AS Firoz
July 2008 edition: INR 5000 or USD 100
Sep 2008 edition: INR 7500 or USD 150
(Original price: INR 50,000 or USD 1100)
'Iron Ore in India: The Present and the Future of it', Dr AS Firoz provides you with valuable information on Indian iron ore market and the industry.
This report critically looks at the current situation in the industry, potential of the iron ore market growth in the medium term, growth plans of the individual major companies, demand and supply issues related to raw materials like coal and iron ore, competitive positioning of steel production in the country, socio economic and political factors which may have direct and indirect impact on the growth dreams of the Indian steel makers, etc among a large number of other relevant issues of strategic importance.
To know the details of contents
http://www.steelguru.com/reports/detail/Iron_Ore_in_India%253A_The_Present_and_the_Future_of_It.html
Report Summary:
1. Published: July 2008
2. Format PDF File (Delivery by Email on receipt of payment)
3. Total no of pages - 178 (103 analytical perspective + 25 Tables + 50 Charts)
(Additional Charges would be levied for delivery of file on a CD or in printed form)
You can order your copy to reports@steelguru.com
Stimulus plans - SA defers royalty payments by mining firms - 13 Feb 2009 Mining Journal reported that South Africa will delay levying royalties on the mining industry for 10 months to save jobs as companies like Anglo Platinum Limited slash payrolls in response to the global economic slowdown.
Mr Trevor Manuel, finance minister of SA said in his budget speech to Parliament that “I propose to defer the mining royalty’s regime from this year to 2010. This provides a boost to the industry of about ZAR 1.8 billion, which will assist in minimizing job losses.”
The royalties, which had been scheduled to take effect May 1st 2009, now will be imposed on March 1st 2010. Anglo American plc and other industry members objected to the levy, saying it would deter investment. Anglo Platinum said this week it will cut 10,000 positions in 2009 as the worldwide slump pulls metals prices down.
Mr Manuel also said that the government may start an agency that would be run jointly with companies and labor officials and would invest in economic development in areas hurt by losses of mining jobs.
He added that “If the new development agency can be established this year, we will make an allocation toward its activities in the adjustments budget in October 2009.”
(Sourced from www.miningjournal.com)
Slowdown signs - Idled container fleet crosses 800,000 TEUs mark - 13 Feb 2009 It is reported that idled ocean container capacity has reached a record 800,000 TEUs with 303 ships at anchor as carriers cut or consolidate services on key east west routes amid declining traffic and freight rates.
According to AXS Alphaliner, the unemployed figure represents 6.5% of the world fleet, twice the 3.2% recorded in the depth of the 2002 bear market. That figure was calculated before Senator Lines announced its shutdown.
Alphaliner predicts that the idled fleet grew by 48 ships of 125,000 TEUs in the last two weeks of January and is set to increase as carriers further retrench operations. On October 25th 2008, there were just 70 ships of 150,000 TEUs without work.
The jobless fleet includes 9 vessels of between 7,500 TEUs and 10,000 TEUs capacity, 34 ships of 5,000 to 7,500 TEUs and 57 of 3,000 to 5,000 TEUs. The feeder sector remains the most vulnerable with 85 ships of 1,000 to 2,000 TEUs lying at anchor.
According to Alphaliner, the rising number of unemployed vessels is reflected in the 15% reduction in total capacity on offer on the three main east west routes over the 6 months to February 1st 2009. Capacity has fallen from a weekly 916,000 TEUs to 780,000 TEUs.
The Far East Europe trade has seen the deepest cuts, with capacity tumbling 21% to 333,000 TEUs from 418,000 TEUs. The closure of several service loops in December and January alone removed 50,000 TEUs of weekly capacity, which is now down to its lowest level since May 2007. Capacity on the Far East North America trades has fallen 9% to 335,000 TEUs from 376,000 TEUs and the Europe/Med North America route is down 4.5% to 116,000 TEUs from 121,500 TEUs.
(Sourced from Pacific Shipper)
Chinese domestic HRC price fluctuation analysis - 13 Feb 2009 It is reported that General Manager of Shanghai Ruishen Metals & Materials Co Ltd Mr Li Zhongshuang presented an analysis of the fluctuating HRC market before and after the Spring Festival as below.
According to Mr Li's survey, the thick-gauge HRC posted CNY 3920 per tonne January 21st before climbed to CNY 4030 per tonne and was followed by a retreat to CNY 3800 after the lunar New Year holiday. Mr Li said the plunge was due to various factors incl. lessening demand triggered by the financial crisis, the traders enjoyed fat profit after the deep drop of the price before the year to CNY 2700per tonne end-users were still on holiday after the spring festival, low outlook of future market, arrival of imported resources, falling of the electronic trading market and fears of last year's price plummet etc.
On where the future market would go, Mr Li held it depends on the market demand after Feb 10. Last weekend, he offer of HRC made by Baosteel 1.8mm stood at CNY 4520 per tonne down by CNY 100 per tonne; 2.0mm down by CNY 110 per tonne to CNY 4350 per tonne; 2.75mm down CNY 100 per tonne to CNY 4050 per tonne, 3.0mm down by CNY 130 per tonne to CNY 4000per tonne, 4.0mm down CNY 70 per tonne to CNY 3980 per tonne, 4.75mm down CNY 100 per tonne to CNY 3950 per tonne; that made by Benxi Steel 4.75mm was offered at 3800 CNY per tonne down by CNY 120 per tonne.
The market is regarded lacking of motives for rebound this moment, citing insufficient demand and mounting inventory. On the one hand, the consumption remains slack while product export major steel-consuming industries are blocked, on the other, the available HRC resources are increasing on the market lately based on incomplete statistics, which said HRC on spot market Shanghai is close to 600,000 tonnes, 10% up from before the spring festival.
Another factor is that as HRC price in China has stood higher than abroad, some traders are importing the products for domestic sales, which increased the supply. Nevertheless, Mr Li believed the corrections in HRC market would gradually wind up after February 10th with release of downstream demand and the inventory being scaled down.
(Sourced from MySteel.net)
Visit www.Mysteel.net for real time access to China steel news!
CISA unfazed at FIMI expectation of surge in Indian iron ore prices - 13 Feb 2009 Oriental Morning Post reported that, Indian ore exporters aim to double their offer prices for spot delivery to China in the near term which is encouraged by reviving purchase from smaller mills, however, senior official with China Iron & Steel Association commented that the spot price is to be decided by the market force eventually.
Mr RK Sharma, secretary general of the Federation of Indian Mineral Industries said a grouping of iron ore miners plans to increase prices of iron ore for immediate delivery to as much as USD 90 per tonne in the near term from USD 45 in November. Prices are currently about USD 84 per tonne.
Mysteel senior analyst Mr Xu Xiangchun noted that the news might add to the uncertainties amid benchmark ore talks. Nevertheless, the annual ore talks usually face a lot of drama each year. Therefore, India's ambition may have mild impact. He said that the market fundamentals still appear to be gloomy despite surging freight rates and rallying steel prices. The steel export slumped to 1.91 million tonnes in January tumbling 39.7% from last December 3.17 million tonnes.
China imports 440 million tonnes of iron ore in 2008, up 59.99 million tonnes or 15.64% from the year before. And the import tonnage in Dec rises 20.9%YoY to 34.53 million tonnes. The import growth has continuously moderated in recent months amid ailing economy.
As the second biggest ore exporter to China, India ships a total of 91 million tonnes of iron ore to China last year, accounting for 20.51% of China's total ore import in 2008.
(Sourced from MySteel.net)
Visit www.Mysteel.net for real time access to China steel news!
Stimulus plans - Brazil to build 1 million homes by 2010 - 13 Feb 2009 Bloomberg quoted Mr Luiz Inacio Lula da Silva President of Brazil as saying that the government will help build 1 million new homes by 2010 to revive economic growth as the global financial crisis leads to layoffs in Latin America’s largest economy.
Mr Lula said that he is discussing with state and municipal governments how to best use federal resources for the building drive. A detailed plan will be announced soon. He added that "The construction industry is extremely important for generating jobs and providing dynamism to the economy and steel industry, above all for the least skilled workers in the country."
It may be noted that Brazil’s economy came to a standstill at the end of 2008 as factories curtailed production, commodity prices plunged and demand for Brazilian exports dropped. The government is increasing outlays on construction, which accounted for a fifth of new jobs last year, and on infrastructure in response to the global slowdown.
Mr Jose Carlos Martins VP of Brazilian Construction Industry Chamber said that Brazil needs to build at least 7 million homes in the next 15 years to meet current demand for families earning less than BRR 2,000 a month.
According to a central bank survey of 100 economists, economic growth is expected to slow to 1.7% in 2009. Economists from Morgan Stanley are forecasting zero growth this year, saying Brazil has already entered a technical recession.
BNP Paribas said that Brazil has already injected about USD 100 billion into the banking system in an effort to lessen the effects of the global credit crisis. The government has also cut taxes by BRR 8.4 billion to stimulate consumer spending, which is responsible for about 60 percent of gross domestic product and meet a 4% growth target in 2009.
(Sourced form www.bloomberg.net)
Rio Tinto update on chairman succession - 13 Feb 2009 Rio Tinto announced dthat the process to appoint a new chairman is underway, headed by Mr Andrew Gould, Senior Independent Director and member of the Nominations Committee.
The release added that “At the request of the boards, Rio Tinto's current Chairman, Mr Paul Skinner, has agreed to remain as Chairman until mid 2009, by which time it is anticipated that a successor will be appointed.”
GIPI steel pipe project in Sohar on schedule - 13 Feb 2009 Times of Oman reported that Mr J Y Jeong president and Mr Y K Shin, VP of POSCO Steel Services & Sales Company have visited Gulf International Pipe Industry at Sohar Industrial Estate.
Mr Jeong expressed his delight in seeing the shareholders vision coming to life and for witnessing that the project has remained on the right path to commence production in October 2009.
GIPI is at the peak stage of the project, which entails setting up an 8 to 24 inches ERW carbon steel pipe mill, coating and threading capabilities at Sohar Industrial Estate with annual capacity of 250,000 tonnes per year during the first phase of the project.
The state of the art plant and coating buildings are largely completed by JK Engineering and MBM contractors whilst the machine installation works by Milltech of Korea have commenced. The site office building being constructed by Dawood Engineering is also progressing very well.
Mr Abdullah bin Salim Al Salmi chairman of GIPI said that "The development on the site was impressive and it was really encouraging to see things happening in reality."
He was overwhelmed with the progress made. All the shareholders expressed their full commitment and support for the project.
The shareholders of GIPI are Oman Investment Corporation, Golden Dunes Investments, Gulf Investment Corporation, POSCO Steel Services and Sales Company and Arkan Group LLC.
(Sourced from Times of Oman)
Recession reports - Survival of small & medium steel mills in China - 13 Feb 2009 Financial crisis spreads into the physical economy since 2008 has hit a big blow on China's steel industry. The all around deficits emerged in the industry after last Oct under dual pressures from upstream price fluctuations like iron ore and coke and downstream sluggish demands.
Large steelmakers are likely to survive through the crisis with their own capacity and outside supports, while small & medium steelmakers are on the verge of closedown. In fact, many small mills were forced to stop productions since the Q3 of last year. And China's steel industry has yet to walk out the cold winter" despite a short term rebound stimulated by a series of demands-stimulating policies issued by Govs.
Analysts of economic suggested that under recent conditions, they can seize a position in the market by producing specialties, seeking complementary regrouping and extending industrial chains.
Small mills can yield unique products without high tech requirements to fill empty fields, when they have no advantages in high tech productions compared with large mills. There are two successes: angle steel producer Tianjin Zhaobo Industrial Company Limited and steel strip producer Hebei Qianjin Steel Group Company Limited both has become the leading mill in related products sector. In short, production specialization is a way for these mills to be heads in relevant markets.
Meanwhile, small mills can seek to cooperate with large mills in complementary regrouping. In this way, large mills might separate their low value added products and focus on the production of high value added goods. And small mills may come in for the low value added products as complementarities. In addition, small mills still can properly enlarge their sales network in this way, stretching hands into large mills' markets.
To improve anti crisis ability, small mills need to extend their industrial chains. They can strength the control on the supply of raw materials like iron ore to lower operating cost. Moreover, small mills are possible to offer relevant services to large mills and other industries since they are sensitive to the market changes and easier to make countermeasures. There is a big obsolete capacity of about 100 million tonnes in China at the moment; those small mills with high energy consumption, high pollution and low production have to exit the market initiatively as per national policies.
(Sourced from xinhuanet.com)
Transpetro to buy steel from Usiminas and a Chinese firm - 13 Feb 2009 BNamericas reported that Petrobras' subsidiary Transpetro is in the final stages of negotiations to buy 42,000 tonnes of heavy steel plates and 24,000 tonnes from an undisclosed Chinese producer and 18,000 tonnes from compatriot steelmaker Usiminas.
An official at Transpetro said that the heavy plates will be used to build 49 shipping vessels for Petrobras. To complete the entire project Transpetro is expected to buy a total of 680,000 tonnes of steel. He added that Transpetro has already reached an agreement on prices with the two producers.
Last week, Usiminas voiced public complaints on grounds that Transpetro should buy only Brazilian steel, although the Chinese producer in talks with the Petrobras subsidiary has offered a considerably lower price.
Ativa brokerage said in a report signed by analyst Luciana Leocadio that "It is absolutely normal that Usiminas is trying to lobby with the Brazilian government using these kinds of defense mechanisms, especially in light of the current scenario whereby international steel manufacturers are trying to get rid of inventories by selling at lower prices. Public comments were exaggerated by all parties and could exacerbate relationships between the companies."
So far, Transpetro bought 18,000 tonnes in the first round of bids, 12,000 tonnes in the second round and 7,200 tonnes in the third round and is closing in on the additional 42,000 tonnes in the fourth round.
(Sourced from www.bnamericas.com)
Indonesian coal exports in January down by 35% MoM - 13 Feb 2009 Reuters citing data from Indonesia’s trade ministry reported that it exported an estimated 8.82 million tonnes of coal in January 2009, down by 35% from 13.51 million tonnes in December 2008.
No explanation for the declines was provided by the ministry.
The trade ministry said that Indonesia exported an estimated 8.82 million tonnes of coal in January 2009, compared to 13.51 million tonnes in December 2008.
Indonesia expects to produce 225 million tonnes of coal in 2009, unchanged from 2008.
Indonesia also exported 26,374.26 tonnes of copper ore and concentrates in January 2009, down from 227,295 tonnes in December 2008 as per the ministry.
(Sourced from Reuters)
Essar Steel Algoma posts net loss of USD 14 million in Q3 - 13 Feb 2009 Essar Steel Algoma reported a net loss of USD 14.2 million for the 3 month period ending December 31st 2008 despite a demonstrated focus on cash management and cost reduction in the quarter. E
BITDA recorded a loss of USD 90 million as compared to a USD 362 million gain for the entire 9 month period due to stronger steel markets earlier on in the year and significant productivity improvements.
The third quarter loss is primarily attributable to lower selling prices, lower production volumes and USD 96.6 million in inventory write downs due to the rapid decline in the economy.
Shipments were 508,346 tonnes, representing a 33% YoY decrease over the same period in 2007. Sales for the quarter were USD 533.6 million, up marginally over the corresponding period in 2007, reflecting higher average selling prices and higher value added product mix.
Mr Armando Plastino COO of Essar Steel Algoma said that "We have responded judiciously to the current market conditions with targeted cost saving initiatives. We remain focused on continued cost improvement and are confident we will be favorably positioned to take advantage of increased demand when markets recover."
(Sourced from www.saultstar.com)
China welcomes EU decision to end AD probe on HDG - 13 Feb 2009 It is reported that EU decided to stop the anti dumping investigation concerning Chinese HDG products on February 7th 2009 which is the biggest value case so far since Europe started to levy anti-dumping countervailing duties for Chinese products in 1979.
China’s Ministry of Commerce welcomed the EU decision, and expressed as well the wish that the EU would take an objective and fair stand for judging the anti-dumping investigations on cold rolled stainless steel sheet, wire rod, and seamless pipes from China.
(Sourced from YIEH.corp)
Mr Bagrodia refutes charges of coal shortage in India - 13 Feb 2009 Project Monitor quoted Mr Santosh Bagrodia Indian minister of state for coal as saying that there is no shortage of coal in the country.
Mr Bagrodia at Energy Mart 2009 conference organized by IPPAI in New Delhi on February 4th to 5th said that India has enough reserves to run current power projects and sufficient resources for planned projects.
He said that though there has been critical stock of coal at some power stations, no power plant had stopped generation due to lack of coal.
He further said that the government is trying to plan the coal stock but power producers must also take responsibility.
He asked developers to stick to their coal import targets to avoid shortage.
He added that “If a power project is based on domestic coal, it should be located near the coal source to minimize transport problems.”
(Sourced from Project Monitor)
Production pruning - NLMK restarts BF No 3 - 13 Feb 2009 NLMK announced that it has put at normal operational capacity Blast Furnace (BF) #3 at its main production site in Lipetsk.
The furnace has a maximum production capacity of 1.3 million tonnes of pig iron per year.
BF#3 was idled for a general overhaul in October 2008.
As part of the 100 day overhaul of the 2000 cubic meter unit, the furnace shell and refrigerators were partially renovated and the refractory was fully replaced. The overhaul cost was RUB 65 million.
Corus to install new 3D-measurement system from Shapeline - 13 Feb 2009 It is reported that Shapeline, the Swedish maker of online flatness measurement systems for the steel and metal industry, has entered into a new application area with successful trials at the Corus Direct Sheet Plant in the Netherlands.
At the IJmuiden Direct Sheet Plant, Corus has been measuring the edge profile of the continuous slab at the exit of the caster. The purpose of the measurements is to optimize the settings of the caster to eliminate the risk of break-out from still molten core. After a few months of tests, Corus has now decided to permanently install the equipment.
Mr Pär Kierkegaard CEO of Shapeline said that "The measurement of the slab edge profile is a perfect application for our system. We are able to cope with the tough environment at the caster and we have long term references to certify our capability in meeting varying customer requirements and the usability of our technology."
Mr K Schurer Corus Project Leader said that "Working with Shapeline on this project proved to be easy. From what they told us we expected that they could meet our requirements on the measurement. During the test phase of our project they also showed that they could deliver what they promised, also in our environment which is a bit different from where Shapeline systems normally operate. The theoretical assumptions about how to improve our production process have been proven by the test, and we are now taking the solution into normal operational procedure."
Shapeline systems are used all over the world to measure flatness on metal products. From casting to inspection of the final product there are applications where the manufacturers will benefit from the accuracy and experience of the company.
(Sourced from www.free-press-release.com)
ASX Limited to launch coal contracts index - 13 Feb 2009 Reuters reported that Australia's ASX Limited plans to launch thermal coal futures contracts from April 2009.
ASX said in a statement that trading in thermal coal futures and options contracts was expected to start on April 21st 2009.
In addition, new contracts for New Zealand electricity and Victorian wholesale gas futures would start on April 28th 2009 and May 5th 2009 respectively.
The coal futures, based on high quality thermal coal typically sold to Japan, will have contract units of 1,000 tonnes each and be exported from Newcastle port.
Some industry participants said ASX's launch of coal futures came at a difficult time and would face a tough test against more established platforms, such as the one jointly offered by globalCOAL and Intercontinental Exchange.
A Sydney based coal trader said that "With coal prices and the market being so weak, established players will have little appetite for futures contracts. Moreover, the proposed volumes for each physical shipment are too small so that will pose as a logistical challenge to players.”
ASX said gas contracts for the southern state of Victoria would complement the exchange's existing electricity futures market and enable energy and financial companies to better manage their exposure to fluctuating prices and carbon costs.
ASX added that renewable energy credits will be launched later in the year, ahead of the launch of the government's carbon emissions trading scheme next year.
(Sourced from Reuters)
World chromium industry will get worst by March - Report - 13 Feb 2009 Turkish Yildirim Group forecasts that world chromium industry will reach the bottom by March 2009.
The first spring month is the point till which chromium demand, production volumes, and prices will fall and after which the prices growth can be expected due to increasing demand and low production volumes.
In whiter the price of the pound of high carbon ferrochromium was USD 1.2 to USD 1.65. By July the price can rise to USD 2.35 to USD 3.25.
Russian analytical company SOGRA said that the majority of the analysts believe that the average price in 2009 will be USD 2 to USD 2.5 per pound.
(Sourced from SOGRA)
Sidor Steel output to increase by 40% - 13 Feb 2009 Bolivarian News Agency reported that Venezuela's newly announced National Strategic Steel Plan will increase Sidor Steel's production to 7 million tonnes per annum from 5 million tonnes per annum and lead to the setup of a new steel plant that will produce an additional 1.4 million tonnes.
Mr Eduardo Garmendia president of Association of Metallurgical & Mining Industrialists of Venezuela said that this will make Venezuela a medium sized steel producer in global terms.
He added that the ramp up will reduce the country's steel export volume, resulting in currency savings, while expanding the domestic metal mechanics industry.
Mr Garmendia said that iron production will increase 36% under the plan to 30 million tonnes per annum from 22 million tonnes per annum.
(Sourced from Bolivarian News Agency)
Update on Riversdale coal mining progress at Mozambique - 13 Feb 2009 Mr Steve Thomas, CFO of Australia mining firm Riversdale said that it is actively continuing with its plans to mine and export coal from the Mozambican province of Tete.
Mr Thomas noted that in full production, it would export 6 million tonnes of coke per year and 2 million tonnes of coal via the port of Beira, which was likely to occur by the second half of 2010.
The difficulty with such large quantities of coal is transporting it as the Sena railway line, which was totally destroyed in Mozambique’s civil war, will have capacity to transport just 2 million tonne per year when it re opens this year.
Mr Thomas further said that his firm was considering the use of barges to transport the coal along the Zambezi River and added that, of the process is found to be viable, this would make it possible to transport large quantities of coal to the port of Beira.
Riversdale is not the only company investing in the Tete coal deposits.
Vale has a concession close to that of Riversdale and also plans to export large quantities of coal and the Central African Mining and Exploration Company which has a more modest project, plans initially to export 1,.5 million tonnes of coal per year, although it may increase that amount to 15 to 20 million tonnes per year.
(Sourced from www.macauhub.com))
China to ban new shipyards under new rescue plan - 13 Feb 2009 Bloomberg reported that China will ban new shipyards for three years and support domestic-vessel purchases as the nation's shipbuilders struggle with plunging demand amid tighter credit and slowing world trade.
According to a statement posted on the central government's Web site banks will also be encouraged to increase trade finance to boost ship exports under a plan approved by the State Council, China's cabinet. The government will extend financial aid for domestic buyers of long range ships until 2012.
The Shanghai Securities News citing the China Association of the National Shipbuilding Industry said Chinese shipyard orders may drop by as much as 66% this year as financing becomes more difficult. Ship owners have also pared orders as China's waning demand for commodities and slowing exports to the US and Europe caused freight rates to tumble last year.
The Securities News said existing shipyards will also be banned from expanding for three years, according to the statement. New orders at Chinese shipyards are expected to total between 20 million and 30 million deadweight tons this year compared with 58.2 million deadweight tons last year.
An official at the state backed China Petroleum and Chemical Industry Association, who declined to be identified, said China has also rolled out measures to boost its automotive, steel and textile industries this year as growth in the world's third-largest economy cools to the slowest in seven years amid the global recession. The government may also enact a stimulus plan for the oil refining and petrochemicals industry by March.
(Sourced from Bloomberg)
Mechel units obtains REACH certification for EU - 13 Feb 2009 Mechel announced the preliminary registration of its subsidiaries’ products for compliance with the European Union’s REACH Regulations and obtaining the certificate of compliance with the European standards for the fiber produced by one of Mechel’s subsidiaries, Mechel Nemunas.
In November 2008, Mechel’s plants passed the preliminary registration for substances supplied to the European Union countries in compliance with the Regulations ES #1907/206 of the European Union and Council. Pursuant to the registration rules, the Single Representative of Mechel’s Russian enterprises in the European Union is Mechel’s Lithuanian subsidiary, Mechel Nemunas. Mechel’s Romanian subsidiaries, Mechel Targoviste, Mechel Campia Turzii and Ductil Steel passed the preliminary registration procedure sui juris.
Passing this preliminary registration in compliance with the REACH Regulation is an indispensable condition for entering the markets of the European countries. Products that obtained European pre registration include those produced by the following Mechel subsidiaries: Chelyabinsk Metallurgical Plant OAO, Izhstal OAO, Southern Urals Nickel Plant OAO, Vyartsilya Metal Products Plant ZAO, Bratsk Ferroalloy Plant OOO, Mechel Coke OOO, Tikhvin Smelting Plant ZAO, Moscow Coke and Gas Plant OAO, Beloretsk Metallurgical Plant OAO, Urals Stampings Plant OAO, Chelyabinsk Branch of Urals Stampings Plant OAO, Mechel Targoviste, Mechel Campia Turzii and Ductil Steel.
Additionally, in January 2009, Mechel Nemunas obtained a certificate of compliance with the European standards for the fiber it manufactures. Fiber is an innovative product used to increase the strength of concrete structures. A fiber production line was commissioned at Mechel Nemunas in the fall of 2008. Having obtained the European quality certificate, Mechel is now capable of supplying fiber to the European construction market.
Mr Vladimir Polin Senior Vice President of Mechel OAO said “Obtaining European preregistration significantly increases our products’ competitiveness and broadens our presence in the European markets. Obtaining the European certificate for the fiber manufactured by our Lithuanian subsidiary confirms that Mechel’s products can successfully compete in the international markets and that Mechel remains committed to providing the highest quality products and services to its customers.”
Directory of Ferroalloys Industry in India - 13 Feb 2009 Published in November 2008, 'Directory of Ferro alloys Industry in India' has been comprehensively researched and prepared, to bring you a fully up to date guide to Indian ferro alloys industries.
Why spend hundreds of hours searching for new contacts? Invest in a copy TODAY!
Content:
This report covers name and product details of 60 ferro alloys of India in alphabetical as well as location wise order. Look at the information you'll get in the 'Directory of Ferro alloys Industry in India '
• Company name -60 entries
• Address-60 entries
• Email-60 entries
• URL-18 entries
• Phone number-59 entries
• Fax number -60 entries
Format: PDF File
Total no of pages - 39
Delivery by Email on receipt of payment
Price:
USD 250 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 , which will send you an invoice of the report.
|
