| Price Index - India | | | | 29-Jan | 28-Jan | Change | | ILPPI | 6643 | 6691 | -48 | | IFPPI | 6625 | 6656 | -31 | | INDSPI | 6634 | 6674 | -40 | | What is it? | | Currency | | AUD | 1.5721 | | BRL | 2.3106 | | CAD | 1.2290 | | CNY | 6.8297 | | EUR | 0.7803 | | GBP | 0.6877 | | INR | 48.7300 | | JPY | 89.8816 | | RUB | 35.7725 | | USD | 1.0000 | | ZAR | 10.1741 | | View Current Currency | | Metal Rates Cash Seller & Settlement | | Zn | USD 1076 | | | Ni | USD 10865 | | | Sn | USD 10865 | | | Al | USD 1311 | | | Cu | USD 3105 | | | View Current Metal Rates | | Steel Futures | | NCDEX | 23900 (19-Jan) | INR | 0 |  | | DGCX | 480 (29-Jan) | USD | 0 | | | LME-M | 325 (29-Jan) | USD | +5 |  | | LME-F | 295 (29-Jan) | USD | 0 | | | NCDEX :
NCDEX Mild Steel Ingot Future Closing Price DGCX :
Dubai Steel Rebar Futures Closing Prices LME-M :
LME Steel Billet Future Buyer Prices (Mediterranean) LME-F :
LME Steel Billet Future Buyer Prices
(Far East) | | | | Others
Monday Market Monitor - India (WEEK 5) - Longs show massive slide - 02 Feb 2009 Indian long products exhibited major decline last week. The ILPPI fell by 129 points, whereas the fall in flat products was less pronounced by 41 points. The overall price index INDSPI) plummeted by 87 points:
| Class | 23-Jan | 29-Jan | Change
| | ILPPI | 6772 | 6643 | -129
| | IFPPI | 6666 | 6625 | -41
| | IDSPI | 6721 | 6634 | -87
| | | | |
ILPPI – Indian Long Product Price Index
IFPPI – Indian Flat Product Price Index
INDSPI – Indian Steel Price Index
Long Products:
| Category | 23-Jan | 29-Jan | Change
| | PI – TMT | 6534 | 6380 | -155
| | PI – WRC | 7210 | 7097 | -113
| | PI – Angle | 6426 | 6328 | -98
| | PI – Channel | 6480 | 6356 | -124
| | PI – Joist | 6272 | 6161 | -111
| | | | |
Flat products
| Category | 23-Jan | 29-Jan | Change
| | PI - Narrow Plates | 6308 | 6253 | -55
| | PI - Wide Plates | 6822 | 6799 | -23
| | PI - Hot Rolled | 6453 | 6408 | -46
| | PI - Cold Rolled | 7278 | 7246 | -32
| | PI - Galvanized | 6944 | 6910 | -34
| | | | |
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BSL posts 2.1% YoY increase in Q3 sales - 02 Feb 2009 Bhushan Steel has announced that a substantial drop in standalone net profit for the quarter ended December 2008 on sharp rise in raw material and interest costs. During the quarter, the profit of the company declined 72.19% to INR 207.40 million from INR 745.70 million in the same quarter last year.
It net sales for the quarter increased marginally 2.13% to INR 10,036.90 million, while total income for the quarter rose marginally 1.59% to INR 10,064 million, when compared with the prior year period.
| As at | Dec'08 | Dec'07 | Change
| | Net Sales | 10036.9 | 9827.3 | 2.10%
| | Net Profit | 207.4 | 745.7 | -72.10%
| | | | |
(In INR million)
Slowdown signs - Indian exporters shed 1 million jobs - 02 Feb 2009 Bloomberg quoted commerce ministry of India as saying that Indian exporters have cut as many as 1 million jobs, more than 15 times a December estimate had shown, amid the most protracted decline in overseas sales in a decade.
Mr GK Pillai the Commerce Secretary in an interview in New Delhi said that "The job losses are very substantial and are likely to be of the order of 700,000 million to 1 million, including temporary staff. Job losses are going to be substantial.”
Mr Pillai said that "The government is engaged in a detailed and comprehensive analysis to figure out which sectors of the industry need help and to what extent. I don't think we are going to announce any relief package in the next one month."
The ministry had last month estimated exporting companies had shed around 65,500 positions as contractions in the US and Europe, the country's biggest markets, damp overseas demand.
As per report, exports went down by 1% in December and any recovery is likely only by June. Labor intensive sectors like gems, jewellery, clothing, textiles and handicrafts are the worst hit.
As per report, India's exports tumbled 9.9% to USD 11.5 billion in November from a year earlier after contracting 12.1% in October, the first decline in 7 years. Industrial production increased 2.4% in November, after dropping 0.3% in October, the first contraction in 15 years.
According to the Federation of Indian Export Organizations Indian exporters currently employ about 150 million workers.
(Sourced from Bloomberg)
Steel rolling mills should adopt biomass fuel - 02 Feb 2009 PTI reported that Indian steel ministry has urged that steel re rolling mills should adopt biomass fuel in their units to save energy and for efficient utilization.
Mr Udai Pratap Singh Joint Secretary with the steel ministry said that there was every need to adopt efficient technology both for energy saving and its efficient utilization.
Mr Singh said that “There was a paradigm shift from fossil to biomass fuel in the sector, adding that the need for innovation in the field of technology in order to match up with other countries and ensure quality.”
Mr G Mishra National Project Coordinator of the UNDP (GEF Project) said that India has around 1,200 working re-rolling units and more than 90% of them were quite old and used obsolete technologies, thereby consuming very high energy per tonne of production. The UNDP project would provide advice to the mills on introduction of low cost technology solutions for energy efficiency.
(Sourced from Press Trust of India)
HZL cuts zinc price - 02 Feb 2009 Indian zinc major Hindustan Zinc Limited has cut zinc price on January 30th 2009.
Product - HG Zinc
Grade - 99.95%
Location -Debari Smelter
| Date | Rate
| | 03/01/09 | 70100
| | 08/01/09 | 74700
| | 15/01/09 | 73300
| | 22/01/09 | 72200
| | 27/01/09 | 71000
| | 29/01/09 | 69700
| | 30/01/09 | 68900
| | |
Rate in INR per tonne
Taxes and duties extra
To keep tab on steel prices 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)
BSL picks 9.5% stake in Orissa Sponge - 02 Feb 2009 It is reported that Bhushan Steel Limited has picked 9.5% stake in Orissa Sponge Iron Steel for INR 23 crore.
As per report in a bulk deal, Bhushan Steel purchased 9.5% stake from Ramesh Chandra family's investment firm Prakasauli investments at INR 118 per share.
BSL already owned 5.35% in Orissa Sponge and with the latest move, Bhushan Steel's stake in Orissa Sponge rose to 14.85%.
As per report, Orissa Sponge's main promoters led by Mr Prashant Kumar Mohanty and his investment unit Torsteel Research Foundation India together own 41.51% stake. In addition, George Soros' Quantum Fund and Infrastructure Development Finance Corporation hold 6.31% and 5% stake in the company respectively.
Incorporated in 1979, Orissa Sponge has iron ores reserves of around 120 million tonne and coal reserves of a similar amount. It has sponge iron and steel billet plants at Palaspanga in Orissa.
(Sourced from www.marketpicks.net)
Directory of Overseas Scrap Suppliers to India - 02 Feb 2009 India is large market for import of steel scrap and this is the directory which is going to help many interested group to know this industry.
Published in September 2008, 'Directory of Scrap Suppliers to India' has been comprehensively researched and prepared, to bring you a fully up to date guide to overseas scrap supplier.
Why spend hundreds of hours searching for new contacts? Invest in a copy TODAY!
Content:
This report covers name and product details of 1191 overseas scrap suppliers to India in alphabetical as well as location wise order. Look at the information you'll get in the 'Directory of Scrap Suppliers to India'
• Company name -1191 entries
• Address-1191 entries
• Email-1074
• Phone number-1140
• Fax number -431 entries
Format:
PDF File
Total no of pages – 545
Delivery by Email on receipt of payment
Price:
USD 500 or equivalent in INR
Additional Charges would be levied for delivery of file on a CD or in printed form
How to order:
Ordering the report is simple. You can order your copy to reports@steelguru.com, who will send you an invoice of the report.
PSL Ltd net declines 18.2% in Q3 - 02 Feb 2009 It is reported that PSL Ltd a net profit of INR 24.68 crore for the Q3 ended December 31st 2008, down by 18.25% over the corresponding period a year ago.
PSL in a filing with the Bombay Stock Exchange said that it had a net profit of INR 30.19 crore in the same quarter last fiscal. Total income increased to INR 998.77 crore for the quarter under review from INR 677.91 crore in the same period previous fiscal.
For 9 month period ended December 31st 2008, the company's net profit increased to INR 72.33 crore from INR 66.45 crore in the same period last year. Total income of the company jumped up to INR 2,318.92 crore during the 9 month period under review from INR 1,595.64 crore in the same period last fiscal.
TATA Power Q3 net dips by 49% to INR 101 crore - 02 Feb 2009 BL reported that TATA Power Company Ltd has registered a 49% decline in net profit at INR 101 crore for the Q3 compared with INR 197 crore for the same period last year. The decline in profits is due to increase in the expenditure and interest cost.
For the quarter the net sales increased by 25% to INR 1,776 crore from INR 1,419 crore. The profit after tax for the quarter stood at INR 115.08 crore against INR 197.28 crore in the corresponding period last year and was not comparable owing to the change in the accounting method that the TATA Power undertook this financial year for Mumbai License Area operations.
(Sourced from Business Line)
GE Shipping to maximize spot exposure in dry bulk segment - 02 Feb 2009 Reuters quoted Mr G Shivakumar CFO of GE Shipping as saying that GE Shipping Co Ltd plans to maximize spot exposure in the dry bulk segment due to lower rates.
Mr Shivakumar said that "The number will not go up in dry bulk. It may not be advisable to fix long-term contracts as the market can turn."
He said that currently, less than 13% of dry bulk carriers are on long term contracts and the rest are on spot.
The Baltic Exchange's dry sea freight index BADI for global resources trade sank nearly 90% in 2008.
(Sourced from Reuters)
Jindal Power Limited result for December 2008 - 02 Feb 2009 Jindal Power Limited has finalized its quarterly results ended 31st December 2008 which are summarized below along with last 3 quarters
| Particulars | Net sales | Profit after tax
| | For the Qtrs | |
| | Q3 2008 | 1160.67 | 574.62
| | Q2 2008 | 653.85 | 314.71
| | Q1 2008 | 293.6 | 41.31
| | For the period 8th | 125.39 | 19.43
| | Dec’07 till March 31st'08 | |
| | (Few Days Operations) | |
| | | |
(In INR crore)
Brief detail on 1000 MW Power Plant, Raigarh, in the State of Chhattisgarh:
a) JPL has completed its 1000 MW power project and from September 5th 2008, all the four units of 250 MW each are functioning properly.
b) It has caption coal mine and plant is pithead.
c) JPL has been rated by ICRA and AA rating has been assigned.
d) JPL is the largest merchant Power Plant in India.
Expansion plans
JPL has announced further Brownfield expansion of 2400 MW Power Plant at an estimated project cost of INR 12,000 crore.
Order for Boiler Turbine & Generator package has been placed on BHEL. This project will be completed in stages in the year of 2012 and 2013 and the same will be funded on the basis of 70:30 debt, equity. Debt of INR 8,400 crore will be tied up in due course of time and the equity of INR 3,600 crore will be arranged from internal accruals.
Jai Corp announces Q3 results - 02 Feb 2009 Jai Corp Ltd has announced that the following unaudited results for the quarter ended December 31st 2008. It has posted a net profit of INR 148.70 million for the quarter ended December 31st 2008 as compared to INR 388.10 million for the quarter ended December 31st 2007.
It total income has decreased from INR 1295.00 million for the quarter ended December 31st 2007 to INR 980.20 million for the quarter ended December 31st 2008.
Pennar net up by 5% at INR 9.52 crore - 02 Feb 2009 It is reported that Pennar Industries Ltd’s net profit for the quarter ended December 31st 2008 was up by 5.77% to INR 9.52 crore compared with INR 9 crore achieved in the corresponding previous quarter. The net sales for the quarter increased 5.48% to INR 150.9 crore. The earnings per share during the quarter stood at INR 3.01.
According to the company’s balance sheet filed with the Bombay Stock Exchange, the paid up equity share capital increased to INR 63.23 crore as on December 31st 2008 against INR 54.07 crore in the corresponding quarter in the previous year due to conversion of debentures to equity by foreign investors in January 2008.
It said that the increased profit margins were obtained by diversifying the product range adding value added products such as engineering components, road safety system and rail wagon and coach profiles.
HEG to slash graphite plant capacity - 02 Feb 2009 BL reported that HEG Ltd board has decided to reduce the expansion of the graphite plant capacity to 66,000 million tonne at a cost of INR 42.5 crore due to market conditions.
Earlier, the board had approved expanding the existing 60,000 million tonne to million 80,000 tonne at a cost of INR 190 crore.
(Sourced from Business Line)
Indian Railway invites EoIs for multimodal logistics parks - 02 Feb 2009 It is reported that Indian Railways for its proposed multi modal logistics parks along the dedicated rail freight corridor it has invited expressions of interest from large logistics service providers, third party logistics players, container operators, industry and financial institutions, stated the Railways in a statement.
Railways in a statement that these logistics parks, which will have road and rail connectivity are expected to serve as a hub for providing end to end logistics solutions to industrial customers. These would serve as points for aggregation and distribution of cargo and transfers from rail to other modes and vice versa.
As per report, the parks would also have cargo processing facilities unpacking and repacking to different sized lots, labeling, unitization, sorting and inspection of goods, assembly and minor fabrication that are undertaken before transhipment of goods packaging.
Besides, revenue streams from logistics related functions, these logistics parks are expected to provide business opportunities due to the multi faceted real estate potential, office and commercial space, hotels and restaurants, residential accommodation, trade pavilions and conference facilities.
(Sourced from Business Line)
Rio in talks with Chinalco for funding - 02 Feb 2009 Reuters reported that Rio Tinto is close to agreeing a capital injection worth up to USD 15 billion with the Chinese government as part of an ambitious plan to reduce its debt burden.
As per report, Rio has drawn up complex plans that include a direct investment from Chinalco as well as issuing a large convertible bond to either the Chinese company or another entity.
Under the plans, which are being considered by Rio Tinto's board but have yet to be signed off by Chinese government, Chinalco will increase its stake in Rio in London’s shares by about 6% to 18%, while simultaneously buying up to 14% of it's Australian listed shares.
In a statement responding to press speculation, Rio said there was no certainty a transaction would take place. It said that "Rio Tinto confirms that it has held discussions with Chinalco regarding Chinalco acquiring minority interests in various operating businesses of the Rio Tinto group and also investing in convertible instruments.”
Rio is also in talks to sell direct stakes in some of its assets, such as specific mines and supply contracts to the Chinese. The size of the convertible bond has not been finalized but it is expected that the total size of the Chinese capital injection will be in the region of USD 15 billion and could be higher.
Contingency plans for a rights issue, which are being overseen by JP Morgan Cazenove, have also been drawn up if the talks with the Chinese fail.
If the Chinese give their approval to the deal, Rio Tinto hopes to announce the capital raising with its results on February 12th 2009. Rio is also planning to sell part of its stake in Escondida, Chile. Experts said Rio Tinto's stake in the mine could be worth as much as USD 6 billion. Rio Tinto has also been in talks to sell its packaging arm, which is estimated by analysts to be worth more than USD 3 billion for several months.
The asset sales are part of an ongoing strategy to raise cash and reduce debt amid a sharp downturn in commodity prices and increases in the cost of servicing bank debt.
(Sourced from Reuters)
Production pruning - POSCO may further reduce output - 02 Feb 2009 Reuters reported that POSCO may further reduce steel production in February but the cut will be below 200,000 tonnes.
POSCO, which reduced production by 200,000 tonnes in December and another 370,000 tonnes in January, has said it may have to extend production cutbacks until March due to sluggish demand.
Mr Choi Doo-jin spokesman of POSCO said that "February's plan has yet to be decided, but the cut will be less than January's and below 200,000 tonnes as steel consuming industries are raising operation rates, although overall demand conditions remain weak.”
POSCO, which produced 33 million tonnes of crude steel last year, warned last month its total output for 2009 may fall by as much as 4 million tonnes or 12% from the previous year.
(Sourced from Reuters)
Anshan eying 50 million tonne capacity - 02 Feb 2009 It is reported that China is to build Anshan Steel as a 50 million tonnes per year steel giant, same with Baosteel and Wuhan Steel by 2011, exactly pointed out in the revitalization plan of steel industry approved by State Council.
As per the plan, Anshan Steel will achieve the target through regrouping Panzhihua Steel Group and Dongbei Special Steel Group, that in accordance with previous reports on the restructuring of Panzhihua Steel. However, Dongbei Special Steel is an addition.
1. Anshan Steel to Enter into Special Steel Sector
To regroup Dongbei Special Steel, Anshan Steel will strengthen its power in special steel sector.
An official of the Development & Reform Commission of Liaoning Province said "In 2008, we set out to promote the regrouping between these two large steelmakers in order to optimize resources utilization, solidify industrial centralization and enhance competitiveness."
Mr Hu Hao steel analyst of Central China Securities said combined in 2004 by Dalian Steel Group, Fushun Special Steel Group and BeiMan Special Steel with the registered capital of CNY 36.4 billion Dongbei Special Steel is one of China's 3 top special steel producers, rivaling special steel branches of Citic Pacific and Baosteel.
At present, the special steel maker is reported to have 2.43 million tonnes per year special steel capacity and 1.98 million tonnes per year of steel products capacity and own two listed subsidiaries: Fushun Special Steel Co Ltd and Dalian Jinniu Co Ltd.
As learned, above 50% of special steels used in domestic aviation and war industries come from Dongbei Special Steel and above 80% of special steel researches for hi-tech industries are undertook by the mill.
Mr Qin from the publicity department of Dongbei Special Steel said "For me, I have no idea about this news."
The official from DRCL notes Anshan Steel hasn't yet talked with Dongbei Special Steel on the material regroup, though the decision is made. The official said before this, both senior managers got in touches on the restructuring, but the side from Dongbei Special Steel opposed the proposal at that time.
It is obvious that Gov has made out decision, though there is not accordance between them. In fact, Anshan Steel's subsidiary has cooperated with the special steel market. On December 25th 2008, Benxi Steel Group which is formally merged by Anshan Steel acted as the underwriter of Dongbei Special Steel's releasing CNY 500 million corporate bonds.
2. Anshan Steel to Control 75% of Iron Ore Resources in China
At this stage, Anshan Steel is busy in regrouping Panzhihua Steel Group who possesses rich Vanadium-Titanium iron ore resources. The country will give a big push in this regroup according to its revitalization plan.
Mr Hu expects that Anshan Steel will control about 75% iron ore resources in China after the regroup.
The proved iron ore reserve of Anshan Steel has reached 9.3 billion tonnes accounting for 25% of domestic total reserve. However, Panzhihua Steel boasts richer resources than the former. Southwest China-based steelmaker deals in about 10 billion tonnes of proved iron ore reserves, including 9.8 billion tonnes of V & Ti-bearing magnetite.
Mr Hu noted that Anshan Steel is capable to buy in Panzhihua Steel because of its mighty capital. Data from public media shows that Anshan steel posted CNY 154.126 billion of gross assets and CNY 86.915 billion of net assets by last 3rd Q. The company realized CNY 10.423 billion of net profit in the first three quarters of 2008. Moreover, Anshan Steel had received up to CNY 103.5 billion of comprehensive credit line with CNY 61.3 billion untapped by the end of last Sep.
Mr Hu thinks that the regroup of Panzhihua Steel and Debei Special Steel by Anshan Steel Group reflects a meaningful consideration. "Since Vanadium and Titanium resources are strategic resources necessary for special steel industry, the regroup aims to link up the resource with the special steel producer."
2. Anshan Steel Capacity Will Outpace 50 million tonnes per year
Despite the above, it's learned that China will promote the material restructuring between Anshan Steel and Benxi Steel. In addition, Anshan Steel launched a 2 million tonnes per year JV with Lianyuan Steel in Liaoning.
Till now, Anshan Steel's future domain becomes clear: it will hold Panzhihua Steel and the V-Ti resources in southwest China; meanwhile, it will control northeast market after regrouping Benxi Steel and Dongbei Special Steel. Then, the steel giant will spread its influences to the north, east and south parts of China.
Mr Zhang Xiaogang GM of Anshan Steel expressed the mill would grow into a 50 million tonnes per year steel group by 2010. And the target is likely to be reached by 2011 with Government supports.
In 2007, the total output of Anshan Steel and Benxi Steel is concluded at 23.58 million tonnes, far from the target of 50 million tonnes. In the future, Anshan Steel's capacity is estimated to approach 53 million tonnes of crude steel when all regroup completes.
The gist of capacities of these enterprises is as under
1. Anshan steel – about 16 million tonnes per year
2. Benxi steel - about 10 million tonnes per year
3. Panzhihua Steel - about 8 million tonnes per year
4. Dongbei Special Steel - about 5 million tonnes
In future, Anshan steel can increase 10 million tonnes per year capacity after finishing its Bayuquan project. The JV between Anshan Steel and Lianyuan Steel will expand its capacity to 4 million tonnes per year after completing its 2nd phase.
(Source: www.chinatimes.cc)
EU concerned with 'Buy American' provision - 02 Feb 2009 It is reported that European Union is concerned about a "Buy American" provision in a proposed US stimulus plan.
Mr Peter Powell spokesperson of EU said that despite the concerns over the stimulus provision, the European Union has adopted no official stance on the proposal to date.
He added that "We are looking into the situation. Before we have the final text it would be premature to take a stance on it. However, the one thing we can be absolutely certain about is if a bill is passed which prohibits the sale or purchase of European goods on American territory that is something we will not stand idly by and ignore."
The "Buy American" provision in the stimulus plan, which is currently before the US Senate, calls for contractors to only use steel made in the United States. The provision would only apply to development projects that would be funded by the USD 825 billion stimulus plan.
(Sourced from UPI)
Sesa Goa expects 30% volume growth by end FY '09 - 02 Feb 2009 Encouraged by a surge in demand for Indian iron ore from Chinese steel mills Sesa Goa expects a 30% volume growth by the end of this fiscal.
Mr P K Mukherjee MD of Sesa Goa told media that "We are looking for a 25% to 30% growth in volumes on an year on year basis. We look to meet this target by this fiscal-end and maximize interests of our stakeholders.”
The company's confidence is based on stability in iron ore prices, which it said, now have even started moving up.
Mr Mukherjee said that "Iron ore prices have bottomed out. In last two months, the prices have actually moved upwards by up to USD 15 a tonne.”
The Vedanta Group firm expressed optimism even as it posted a 22.53% decline in its net profit on stand- alone basis for the third quarter of fiscal 2009 after being hit by a sharp decline in iron ore prices which crashed by about 60% from its peak last year.
(Sourced from ET)
Italian plate import market non existent - 02 Feb 2009 It is reported that plate import market in Italy is basically not existent at present.
As per market information, most business is done by Italian domestic re rollers who sell at approximately EUR 470 per tonne delivered to customers with payment term at 60 days.
Thus import business is only possible if import price is substantially lower than domestic one.
Just to illustrate how slow the plate market in Italy, a market report said that one of the domestic plate reroller had about 100.000mt HRP on stock in December end, which is almost equivalent to their usual full year turnover of plates.
To keep tab on steel prices 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)
Annual Report on China's Steel Market in 2008 and the Outlook for 2009 - 02 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
Asian HRC market may recover from April onward - Report - 02 Feb 2009 According to market sources, there is growing speculation that HR coil market conditions for export deals in Asia will rebound for a recovery in or after April 2009 when an environment forms there for an upswing in HR coil prices.
At present, the HR coil market in Asia is quiet due to the lunar New Year holidays in parts of East Asia such as China, South Korea, Taiwan, and Hong Kong. Attention has already begun to focus on how market conditions go after those holidays.
In China, Baosteel Co Limited intends to raise the HR coil price by CNY 300 to CNY 4,437 per tonne after value added tax for March 2009 shipments. Its new HR coil price translates into USD 555 per tonne before VAT. In February, China's other major integrated steelmakers such as Wuhan Iron & Steel Group Corp and Anshan Iron & Steel Group Corp are expected to give domestic customers notice on separate price increases of HR coils for March shipments.
It remains to be seen whether those low prices on offer to Asia will disappear in the immediate future. HR coils for sacrifice sales are limited in quantity, but low prices of HR coils are pervasive in the world's markets. In the past, an upswing in HR coil prices led to increased prices of HR coil derivatives such as CR sheets, but no advance in HR coils was expected in the absence of a rebound or advance in prices for the derivatives. Under the existing circumstances, no immediate rebound is expected in the prices of the derivatives, an environment that precludes an early upswing in HR coil prices for export deals in Asia.
(Sourced from TEX Report Limited)
Monday Market Monitor - CIS (WEEK 5) - Market remains dull - 02 Feb 2009 Despite of market showing bumps in the last week, prices are close to previous week with minor increase by USD 10 per tonne to USD 15 per tonne in HRC levels, probably a fall out of Ukrainian mills attempts to increase prices for contracted material (by around USD 40) which pushed spot-market quotations.
| Item | Grade | Size | Change
| | Billets | 3-5 sp/ps | 125-150 mm | 0
| | Rebars | A300C-A500C | 12-32 mm | 0
| | Wire rod | Mesh | 5.5-6.5 mm | 0
| | HRC | ST1-ST3 kp/sp/ps | 2-8 mm | 15
| | HRC | ST1-ST3 kp/sp/ps (Russian) | 2-8 mm | 10
| | Plates | A36 | 8-30 mm | 0
| | CRC | 08 kp (Ukrainian origin) | 0.5-1.5 mm | 5
| | CRC | Russian origin | 0.5-1.5 mm | 0
| | | | |
Change on 30th January ‘09 is with respect to prices on 23rd Jan ‘09
Change is in USD per tonne
Delivery FOB Black sea
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(Sourced from www.steelprices-india.com)
Venezuela reopens iron mine with Chinese backing - 02 Feb 2009 Herald Tribune reported that Venezuela, with help from China, reopened recently the country's biggest iron mine and began construction on a nearby steel mill set to begin production in the fourth quarter of 2011.
Mr Hugo Chavez President was present for the nationally broadcast ceremony in Bolivar state, 850 kilometers southeast of Caracas.
Mr Chavez said China will contribute USD 70 million toward the cost of reactivating the Cerro Bolivar mine, which is to be operated with technical advice and cooperation from Swiss based Commodities and Minerals Enterprise Ltd.
Mr Chavez recalled that mining began at Cerro Bolivar in 1954 and was halted in 1997, "when the Washington Consensus prevailed and Venezuela was in the abyss, because it was an auctioned country."
The mine is expected to be producing at a rate of 3 million tonnes of iron ore annually by the end of next year. All of that output is destined for Chinese steel mills.
After inaugurating the reopened mine, Mr Chavez oversaw the signing of an agreement to pay USD 120 million advance to Brazilian firm Andrade Gutierrez for the construction of a new steel mill in Ciudad Piar that is supposed to be in operation by late 2011.
(Sourced from Herald Tribune)
Monday Market Monitor - MEA (WEEK 5) - Rebars firm up in UAE - 02 Feb 2009 The upward movement in rebar prices in UAE has pushed up Middle East long product price index MLPPI by 18 points during last week. MFPPI remained stable but overall MEDSPI gained by 13 points.
| Class | 22-Jan | 29-Jan | Change
| | MLPPI | 4198 | 4216 | 18
| | MFPPI | 6537 | 6537 | 0
| | MEDSPI | 4907 | 4919 | 13
| | | | |
MLPPI – Middle East Long Product Price Index
MFPPI – Middle East Flat Product Price Index
MEASPI – Middle East Steel Price Index
Long products
| Category | 22-Jan | 29-Jan | Change
| | PI – Rebar | 3617 | 3661 | 45
| | PI - WRC | 4126 | 4126 | 0
| | PI - Angle | 5140 | 5140 | 0
| | PI – Structural | 5389 | 5389 | 0
| | PI – HEA | 6427 | 6427 | 0
| | | | |
Flat products
| Category | 22-Jan | 29-Jan | Change
| | PI - Narrow Plates | 6318 | 6318 | 0
| | PI - Wide Plates | 8413 | 8413 | 0
| | PI - Hot Rolled | 5414 | 5414 | 0
| | PI - Cold Rolled | 6087 | 6087 | 0
| | PI - Galvanized | 6264 | 6264 | 0
| | | | |
To know more about these indices please visit
http://steelprices-middleeast.com/spi_services/spi.html
Trends for some steel products
Rebars
BS4449 Grade 460B
| Location | CUR | Change | USD | %
| | Dubai | AED | 100 | 27 | 5.1%
| | Dammam | SAR | 0 | 0 | 0.0%
| | Bahrain | BDR | 0 | 0 | 0.0%
| | Kuwait | KDW | 0 | 0 | 0.0%
| | Qatar | QAR | 0 | 0 | 0.0%
| | Jeddah | SAR | 0 | 0 | 0.0%
| | | | | |
Change on January 29th is with respect to prices on January 22nd
Change is per tonne
Wire rod
SAE 1008
| Location | CUR | Change | USD | %
| | Dubai | AED | 0 | 0 | 0.0%
| | Dammam | SAR | 0 | 0 | 0.0%
| | Bahrain | BDR | 0 | 0 | 0.0%
| | Kuwait | KDW | -4 | -15 | -2.4%
| | Qatar | QAR | 0 | 0 | 0.0%
| | Jeddah | SAR | 0 | 0 | 0.0%
| | | | | |
Change on January 29th is with respect to prices on January 22nd
Change is per tonne
In 2009 market sentiments have firmed up due to plummeting inventory and cut in production leading to mild bounce back of demand expected to increase by 5% to 10% in the coming month.
Overall the market seems poised for a revival in the 2nd half with minor corrections in the coming months.
To keep tab on steel prices subscribe to services of www.steelprices-middleeast.com by registering or sending a mail to admin@steelprices-middleeast.com. Please note that this is a paid service.
(Sourced from www.steelprices-middleeast.com)
Ukrainian HR mills attempting price hike - 02 Feb 2009 There was a lull in Black Sea steel export market during last week in general. Despite of market fluctuations seen last week, prices are close to previous levels.
Quite strange situation is on the HRC market, as last week some the Ukrainian producers tried to lift prices by around USD 40 per tonne that pushed spot market quotations a little bit.
The Ukrainian mills are heard to be loaded with orders but most of them are coming to the market on short term basis.
To keep tab on steel prices 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)
Corus to re enter scrap market in the second quarter of 2009 - 02 Feb 2009 It is reported that demand for steel cans has been hit by the downturn in the automotive and construction industries. However, Corus has revealed that it is unlikely to look at buying packaging, including cans, until the second half of the year, due to the ongoing economic downturn.
Speaking to letsrecycle.com, Mr David Williams, manager of Corus Steel Packaging Recycling, said that "We'll be back in the scrap market by the second quarter and back looking at buying packaging in the 2nd half of 2009." He added that Corus might be looking at buying some engineering scrap for its steel mill in Rotherham, South Yorkshire, in February 2009.
Mr Mike Trim, cleansing services for Exeter city council, told letsrecycle.com that "We were sending our steel to Corus but we have now found another market. We have not been affected by being able to shift the material on, but we're getting zero, though we are still getting recycling credits from the government."
Another metals recycler, who wished to remain anonymous, told letsrecycle.com that, while his firm were still taking in steel cans before Christmas, the pricing is not that attractive to people who have them and they're holding on to them.
(Sourced from www.letsrecycle.com)
Vinacomin reduces output target for 2009 - 02 Feb 2009 VNS reported that the Viet Nam Coal and Mineral Industries Group, Vinacomin, has set a production target of 33.5 million tonnes of coal in 2009, 4.5 million less than in 2008.
Mr Tran Xuan Hoa general director of Vinacomin said that production targets are being reduced as a result of the global economic downturn which decreased demand for coal both domestically and internationally.
It may be noted that the prices of coal internationally has slid downwards about 50 to 60%. Vinacomin’s stockpiled coal is reported to have reached 8.5 million tonnes.
Mr Hoa said that early this year that Vinacomin needs to sell off at least 2 million tonnes of its stockpiled coal, or it would have to decrease target production for 2009 further.
If a large volume of the stockpiled coal can be sold, coal production this year may end up being 36 to 40 million tonnes. Of the figure, around 20 to 21 million tonnes would be for domestic consumption and 16 to 19 million tonnes would be for export.
In 2009, Vinacomin plans to expand its market and increase service and production quality in order to maintain coal export volume to traditional markets such as Japan, South Korea, and Europe.
(Sourced from VNS)
Hyundai Heavy Q4 net profit up by 67% YoY - 02 Feb 2009 Hyundai Heavy Industries Co said that its fourth quarter net profit rose by 67% YoY as it worked through a large backlog of ship orders. It earned KRW 854 billion in the 3 months ended December 31st 2008 as against KRW 512.9 billion in a year earlier. Sales rose by 42% YoY to KRW 6.05 trillion from KRW 4.25 trillion a year earlier.
Hyundai Heavy and its Hyundai Samho Heavy Industries unit received a total of 153 new ship orders in 2008 worth USD 22 billion. At the end of 2008, it had an order backlog of 340 ships worth USD 38 billion. But no new orders were received in the fourth quarter.
Hyundai Heavy Industries said that it expects 2009 sales to grow by 14.6% to KRW 22.9 trillion thanks to its order backlog. It added that the construction equipment business is likely to suffer because of the global economic slump but other divisions will continue to grow.
(Sourced from www.ap.org)
FMG posted USD 610 million earning in H1 - 02 Feb 2009 The Australian reported that Fortescue Metals has reported a USD 612 million in earnings before interest and tax for the first half, which included a USD 74 million loss on shipping contracts.
Fortescue's cash on hand fell to USD 440 million in the December 2008 quarter, from USD 624 million at the end of September 2008. The substantial fall came despite Fortescue gaining USD 322 million from selling and leasing back some of its infrastructure, which will serve to raise operating costs. Of the USD 440 million remaining, about USD 160 million is restricted cash that will be put towards making interest payments, leaving Fortescue with USD 280 million in free cash, highlighting the importance of the leasing arrangements.
Fortescue has put its plans to expand output to 80 million tonnes a year on indefinite hold due to the weak market for iron ore and the difficulty in obtaining funding. It has also faced difficulties ramping up its targeted production rate of 45 million tonnes a year because of a weak market for lump ore, the need to keep the amount of alumina low and water issues. It reported cash production costs of USD 38.32 per tonne in the December 2008 quarter, compared with USD 29.87 per tonne in the September 2008 quarter.
Fortescue expects to ship about 18 million tonnes of iron ore in the second half, compared with 13 million tonnes in the first half. It received an average price of USD 96.63 per tonne for its ore in the December 2008 quarter, compared with USD 88.69 per tonne in the September 2008 quarter.
But the rapid fall of the Australian dollar meant it should have received more than USD 96.63 per tonne in the December 2008 quarter if it was selling at the benchmark price.
Mr Rowley executive director of Fortescue said that it was discounting its ore on a case by case basis and that smaller, private Chinese steel mills were more accepting of shipments than larger, state owned rivals.
(Sourced from www.theaustralian.news.com)
Steel prices to keep at low level in 2009 - CAS - 02 Feb 2009 The state media Xinhuanet.com cited a report released by Chinese Academy of Sciences lately as saying Chinese steel market would feature low supply and demand in the New Year, with prices lingering at low level.
As per report, Beijing's support packages could support the market to some extent, with major products production ramping up gradually.
The report also suggests steelmakers and related government bodies to keep a close eye on market changes, putting a control on total production and optimizing product mix. Industrial consolidation progress should also be accelerated in the year.
Leading domestic steel mills are encouraged to invest in overseas assets to lower costs and lift profit.
(Sourced from Xinhua)
Klockner posts Q4 operating loss of EUR 65 million - 02 Feb 2009 Reuters reported that Klöckner & Co has posted an operating loss of EUR 65 million in the fourth quarter as the value of its inventories plunged, and withheld an outlook for 2009 due to economic uncertainties.
Quarterly sales slid 7% YoY from a year earlier as both prices and volumes declined. EBITDA and before special items, was affected by EUR 60 million in inventory write downs.
Klöckner said that "Prevailing economic uncertainties make it impossible to issue any guidance about the direction of fiscal year 2009 at this point."
However it said that sales and margins will suffer, even though the company had started a cost cutting program in September. Full year EBITDA jumped 60% to EUR 595 million, inflated by a book gain from sold businesses. Full year sales rose by 6% YoY to EUR 6.7 billion, slightly below average analyst expectations of EUR 6.8 billion in a Reuters' poll.
Klockner earlier this month confirmed its 2008 outlook for sales of almost EUR 7 billion.
(Sourced from www.reuters.com)
Production pruning - Illawarra coke firm to shut plants - 02 Feb 2009 ABC News reported that an Illawarra coke company is to stop production indefinitely next week as a result of the economic global downturn.
As per report, the Illawarra Coke firm will suspend production next week with 50 full time employees asked to take leave. It said that it has been severely affected by the global economic downturn.
Mr Paul Seshold director of the firm said that the action is necessary after a major European customer defaulted on a large coke purchase contract. He added that the shutdown is temporary, but workers have not been given a return date.
He further said that "What we have undertaken to everybody is to keep them fully informed on progress."
Coke plants at Corrimal and Coalcliff will be placed under care and maintenance at the end of next week to ensure environmental requirements are met.
(Sourced from www.abc.net)
Production pruning - TDG admits fall in volume of steel transported - 02 Feb 2009 TDG, which manages Corus UK's road transport operation, admits that it has experienced a significant reduction in the volume of steel transported over the past few months.
Mr Mark Starosolsky, TDG operations director for Corus UK, who oversees TDG's 4PL transport operation at Scunthorpe, said that "The falls in volumes have hurt everyone and we have been working hard to minimize the effect on all of our partners as we endeavor to minimize Corus's logistics costs through this downturn."
TDG manages transport services for 60 Corus production and distribution sites using about 30 separate hauliers. Before the contract with TDG went live in August 2006, the individual Corus sites bought and managed their transport services separately.
Mr Anne Preston chairman of Prestons of Potto, one of the hauliers involved in the operation, said that "At the moment we don't know exactly what is going to happen but we are terribly disappointed with this news. We can't really comment but we are working really hard so we can come out strong when the economic downturn is over."
Mr David Fox CMD at David Fox Transport said that "It is too soon to say at the moment what affect this will have on us."
Corus currently employs 24,000 people in the UK and 42,000 across the world. The firm says the restructuring will increase its annual profits by about GBP 200 million.
(Sourced from www.silobreaker.com)
Directory of Steel Pipe Makers in China - 02 Feb 2009 Welded pipe and seamless pipe are the two major categories of tubular products in China and are not only used domestically but are exported across the world.
China's seamless pipe enterprises began expansion from 2004. By end of 2006, the nation's capacity of this products reached 16.5 million tonnes. As the world's first producer, China has over 300 seamless steelmakers, a part of which possess first rate manufacturing technology and most advanced facilities, bringing domestic sufficiency close to 90%.
On welded pipe, the producers are distributed more scattered, bulk of which are privately owned and have a relatively big capacity. Yet, many productions are affected by seasonal factors and actual output can be less than the total capacity of 37 million tonnes. ERW accounts for around 80% of the total welded pipe production capacity.
Published in December 2008, 'Directory of Steel Pipe Makers in China ' has been comprehensively researched and prepared, to bring you a fully up to date guide to Chinese steel pipe industries.
Why spend hundreds of hours searching for new contacts? Invest in a copy TODAY!
Content:
This report covers name and product details of 1208 steel pipe manufacturers of China in alphabetical as well as location wise order. Look at the information you'll get in the 'Directory of Steel Pipe Makers in China'
• Company name -1208 entries
• Address-1208 entries
• Email-1193 entries
• Phone number-1207 entries
• Fax number -1203 entries
• Mob -487 entries
Format: PDF File
Total no of pages – 629
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BMZ seamless pipe pant operating at full capacity - 02 Feb 2009 Belta cited Mr Viktor Matochkin technical director & chief engineer of BMZ as saying that the pipe rolling plant of Belarusian Steel Works now operates at its full capacity of 20,800 tonnes of seamless hot rolled pipes per month.
In his words, the entire complex of actions relating to the equipment operation in various modes, optimization of manufacturing processes, testing and certification of ready made products was completed on schedule. The facility now operates according to production orders set by contracts.
Raising the output of the pipe rolling plant up to the designed capacity in 2008, Belarusian Steel Works mastered the production of 246 items of pipe grades, including 122 items of different standard sizes. Last year over 73,000 tonnes of pipes were manufactured for mechanical engineering industry, gas, oil and construction industry. More than 80% of the output was exported to 15 countries.
The Chief Engineer remarked, in 2008 the compliance of the company’s Quality Management System with international standards ISO 9001:2000, the national standard STB ISO 9001-2001 was confirmed. The company’s quality management system used in pipe rolling production was certified for compliance with ISO 9001:2000, ISO/TS 29001, API Spec Q1 by the American Petroleum Institute.
In 2008 certificates of compliance of the production of hot rolled profiled iron and seamless pipes made of ferrite materials in line with requirements of AD 2000 Merkblatt W0 and Directive 97/23/EU Addendum 1, Clause 4.3. Production of pipes out of steel 235, 275, 315, 55 21.3-168.3 millimeters in line with DIN EN 10297-1:2003-06 and other standards were acquired.
All in all, around 20 documents were received. They confirm the compliance with international standards, which allow selling BMZ pipes to virtually all countries. Certification bodies and pipe buyers point out the modern equipment and the technology for manufacturing high quality hot rolled pipes in compliance with international standards.
Mr Victor said that now the company is reconstructing the steel smelting facility to start manufacturing round cast sections for pipe production. It will cut down costs and raise the output of the electric steel smelting workshop and the profiled iron workshop. A project for setting up the production of specially rigged pipes for the oil extraction industry is under consideration. It is a project for the future. It will be carried out step by step within the next five years.
(Sourced from Belta News)
Five booklets published from the Ferritic Solution - 02 Feb 2009 International Stainless Steel Forum announced that 5 booklets are published from the Ferritic Solution, namely Commercial Food Equipment, The Sugar Industry, The Freight Industry, Building Interiors and Solar Water Heaters.
Commercial Food Equipment
The world of commercial food equipment has been particularly hit by the volatile nickel price and its effect on the price of nickel-containing stainless steels. The inevitable swing away from nickel-containing grades towards nickel free ferritic grades is well in motion and, happily, ferritic have proved the perfect technical and economic answer in many application fields.
The Sugar Industry:
The sugar industry is a striking case where ferritic stainless steels are a clearly superior and relatively low-cost alternative to the commonly used carbon steels. From a practical point of view, the resistance of these steels to corrosion and abrasion and their strength put them streets ahead. Then, since they contain no nickel, ferritic are price stable and relatively inexpensive. These factors combined add up to impressive Life Cycle Cost benefits.
The Freight Industry:
This booklet proclaims the merits of the so called utility 12% chromium stainless steels in the construction of freight wagons and containers. It is part of an ISSF drive to inform existing and potential users of stainless steel about ferritic grades of stainless steel.
Building Interiors:
Today, stainless steel is well known for its presence in building envelopes. These often use austenitic grades. For interior uses, however, an austenitic grade often seems a rather luxurious solution. Less expensive, more stable in price but possessing fine properties, ferritic grades are the perfect alternative for indoor use.
Solar Water Heaters:
The new millennium brings with it a new level of concern about the cost of energy. By this I mean not just the ever rising financial cost to consumers but the cost to the planet of the way we generate our energy, consume non renewable fuels and pollute our environment in the process.
To know details pl visit
http://www.worldstainless.org/News/New+documents/Five+Booklets+from+the+Ferritic+Solution.htm
Analysis of rebar market in UAE - 02 Feb 2009 One of the most important segments of UAE is construction, which in turn decided the economic mood of the country and fate of millions of people connected with this sector.
Rebar is one of the main inputs in construction and during the boom time, ie in the month of July 2008, its prices reached unimaginable levels of AED 5750 per tonne (USD 1575). These levels continued till August beginning as the aftermath of global meltdown, specially in the FOB price levels at Black sea as there is a time lag in International and domestic prices.
Rebar prices in UAE touched the nadir of AED 1900 per tonne in early November down by 67% as compared to peak levels in July 2008, which was followed by recovery starting on November 11th 2008, which lasted till January 7th 2009. In other words rebar prices strengthened by AED 250 per tonne or 13% during November 2nd 2008 and January 6th 2009.
The price movement of rebar in UAE during this period is detailed below
| Date | Rate | Change
| | 1-Jul | 5750 |
| | 4-Aug | 5400 | -6.1%
| | 10-Aug | 5300 | -1.9%
| | 17-Aug | 5200 | -1.9%
| | 24-Aug | 4900 | -5.8%
| | 1-Sep | 4500 | -8.2%
| | 15-Sep | 4200 | -6.7%
| | 21-Sep | 3800 | -9.5%
| | 23-Sep | 3300 | -13.2%
| | 2-Oct | 3000 | -9.1%
| | 12-Oct | 2900 | -3.3%
| | 19-Oct | 2500 | -13.8%
| | 26-Oct | 2300 | -8.0%
| | 2-Nov | 1900 | -17.4%
| | 11-Nov | 1950 | 2.6%
| | 13-Nov | 2050 | 5.1%
| | 23-Nov | 2100 | 2.4%
| | 28-Dec | 2150 | 2.4%
| | 7-Jan | 1900 | -11.6%
| | | |
Rate in AED per tonne
(Source – www.steelprices-middleeast.com)
The lowest levels of the import bookings had touched USD 400 per tonne on CFR Dubai levels for the November shipments .this brought the sentiment down and the stockist sitting on heavy inventory started selling in a panic situation. As the import price of USD 400 per tonne CFR was too low for the mills and the effect of the increase in scrap started the mills to conclude the order s at USD 450 per tonne to USD 470 per tonne CFR Dubai in late November. This hike in the price of imports created a positive impact the local price levels firmed up again at AED 2100 per tonne to AED 2200 per tonne for retail sales in small quantities. But where substantial quantity was sold by the stockiest, it was still at the levels of AED 1700 per tonne to AED 1850 per tonne on cash basis. This was more of distressed sale on cash to liquidate the position taken by them.
The prices till date could rise because somebody comes out with the inventory where in they need cash so making this market very difficult for the time being for any firm prediction.
The latest slide in the first week of January 2009 happened as some of the sellers holding inventory came back to the market to cash the positions as soon they saw the small increase in prices.
The outlook for rebars in UAE now depends on the following factors
1. Progress of various projects
2. The unknown inventory is making this market shaky.
Even if projects keep on going even at reduced pace, there will be rebar demand but as of now majority of it will be met by the domestic producers
On overall it is expected that as of now the bottom has come and the rebars will play with in the band of AED 1900 per tonne to AED 2150 per tonne depending on the various factors and sentiments.
To keep tab on steel prices subscribe to services of www.steelprices-middleeast.com by registering or sending a mail to admin@steelprices-middleeast.com. Please note that this is a paid service.
(Sourced from www.steelprices-middleeast.com)
CIL CCL proposes 16 new projects in 11th plan period - 02 Feb 2009 It is reported that Cola India Limited’s Central Coalfield has proposed 16 new projects during the 11th Plan period to enhance production.
CCL sources said that the proposal would help achieve CCL a production level of 78 million tonne in the terminal year of 2011-12. it added that with CCL all set to meet its target of 47 million tonnes coal production this fiscal, it also envisages to produce 115 million tonnes by the end of 12th Plan (2016/17).
Mr Santosh Bagrodia union minister of state for coal has made two visits recently to take stock of the progress and expressed confidence that the CCL would maintain its achievement record this fiscal too.
The CCL has thrice posted profits over INR 1,000 crore by meeting its production targets productivity and profit in the last three fiscal.
In 2008, the company has produced a record production of 44.15 million tonne, the highest since the inception of the public sector. With an aim to accelerate its record, the public sector is mooting an idea to introduce a single window grievance redressal system in which any employee of the CCL could get their grievances addressed by raising them before the authorities.
(Sourced from Press Trust of India)
Readymade information to help you expand your reach in India - 02 Feb 2009 Last 6 months have spelt doom for almost all walks of life, more so for booming steel and consuming sectors in India. Now every company is taking various measures to remain afloat at these trying times and emerge as winner later
In addition to realigning business processes and improving efficiency to reduce costs, one can try to expand business by reaching out to more clients.
But Indian industry is by and far highly defragmented and thus it is quite difficult and time consuming to reach smaller players. Therefore SteelGuru has made an effort over last 12 months to collect the contact details of various segments and has published several directories.
The directories contain only the following details
1. Name
2. Address
3. Phone No
4. Fax No (Wherever available)
5. E Mail (Wherever available)
6. URL (Wherever available)
They are delivered in PDF format through e mail
The list of such directories is as under
| Sl | Name | Month | USD | Entries | E mails
| | 1 | Indian Steel Makers | 8-Feb | 1250 | 723 | 446
| | 2 | Stainless Steel Manufacturers in India | 8-Mar | 350 | 55 | 55
| | 3 | Electrical Steel Users in India | 8-May | 800 | 431 | 300
| | 4 | Tin Plate Users in India | 8-May | 625 | 147 | 90
| | 5 | Autopart Manufacturers in India | 8-May | 625 | 431 | 403
| | 6 | Cement Manufacturers in India | 8-Aug | 200 | 186 | 157
| | 7 | Machine Tool Manufacturers in India | 8-Aug | 600 | 389 | 381
| | 8 | Transport Companies in India | 8-Aug | 350 | 176 | 130
| | 9 | Refractory Manufacturers in India | 8-Aug | 350 | 74 | 68
| | 10 | Tube and Pipe makers in India | 8-Aug | 350 | 208 | 129
| | 11 | Overseas Scrap Suppliers to India | 8-Sep | 500 | 1191 | 1074
| | 12 | Indian Marine Industry | 8-Oct | 150 | 49 | 35
| | 13 | Forging Industry in India | 8-Oct | 350 | 121 | 82
| | 14 | Indian Galvanizers | 8-Nov | 350 | 203 | 150
| | 15 | Induction Furnace based steelmakers | 8-Nov | 300 | 399 | 283
| | 16 | Indian Ferroalloy Producers | 8-Nov | 250 | 60 | 60
| | 17 | Alloy steel Manufacturers in India | 8-Dec | 250 | 56 | 50
| | 18 | Wire Drawing Manufacturers in India | 9-Jan | 200 | 70 | 59
| | 19 | Mining Industry in India | 9-Jan | 350 | 162 | 141
| | | | | | |
Pl visit http://www.steelguru.com/reports/list.html or send a mail to reports@steelguru.com for further information
Mesabi Nugget construction on schedule in Minnesota - 02 Feb 2009 AP reported that despite two cold and snowy Minnesota winters in a row, work on the USD 250 million Mesabi Nugget project near Hoyt Lakes remains on schedule.
So far this winter, crews have only lost about seven days of work four of those coming in mid-January when temperatures dipped to 30 to 40 below zero.
Construction workers from a half dozen firms have been working 10 and 12 hour days and sometimes on Saturdays to make sure everything is ready to roll by late summer, when officials hope to begin producing and shipping pig iron.
Steel Dynamics of Indiana and Kobe Steel broke ground in January 2007 on what they are calling the world's first full scale demonstration plant using a process developed by Kobe Steel. And, despite the recession, the project is going ahead.
(Sourced from AP)
Teesside to receive USD 500 million investments in 5 years - 02 Feb 2009 Financial Times reported that a large steel plant on Teesside run by Corus is to receive investment of about USD 500 million in the next 5 years to make it more productive.
Mr Antonio Marcegaglia CEO of Marcegaglia announced the planned investment after a deal with Corus was finalized under which Corus agreed to sell an 80% stake in the unit for USD 480 million.
Under the deal, Marcegaglia will pay USD 336 million for a 56% share in the plant, with another steel company Dongkuk of South Korea paying USD 144 million to take a 24% stake. Corus will keep a 20% interest in the site, while it has also agreed to retain responsibilities for the pensions of former workers at the factory, plus long term environmental liabilities.
Mr Marcegaglia said that he expected that the number of employees at the plant would remain roughly the same in the immediate future. But he warned that some of the workers could expect to see changes in their employment contracts in an effort to improve flexibility and competitiveness in a tough steel market.
He said that "Teesside is a good base for providing high quality steel and we think that acquiring the site will help our company’s long term growth. Even so, the potential of the plant is greater than what it has been expressing."
Separately from the Teesside plant, the company plans to spend EUR 1 billion in the next 4 years opening new plants and improving existing ones, mainly in Italy, Brazil, China and Poland.
(Sourced from www.ft.com)
Indian iron ore spot FOB prices surge almost by 10% in January - 02 Feb 2009 It is reported that spot prices of Indian iron ore fines FOB East Coast have firmed up during last 25 days of January 2009.
Iron ore fines
| Grade | Change | %
| | Fe 63.5/62.5% | 6 | 9.5%
| | Fe 61 / 60 % | 2 | 3.7%
| | Fe 59 / 58 % | 4 | 8.5%
| | Fe 58 / 57% | 4 | 9.8%
| | | |
Change is as on January 30th as compared to January 5th 2009
Change is in the FOB East Coast Indian rates
Change is in USD per tonne
The surge is attributed to renewed Chinese buying interest before proceeding on their week long Spring break. As per market indications, the upward trend is likely to be maintained when the market opens next week.
To keep tab on domestic iron ore prices at Bellary and Burbil as well as prevailing FOB levels east Coast of India subscribe to services of www.steelprices-india.com by registering or sending a mail to admin@steelprices-india.com. Please note that this is a paid service.
(Sourced from www.steelprices-india.com)
Slowdown signs - Caterpillar announces additional layoffs - 02 Feb 2009 Caterpillar Inc has notified full time production employees at its Aurora, Decatur and East Peoria manufacturing facilities of permanent layoffs. A total of 2,110 production employees will be laid off at the three facilities as a result of this decision. The layoffs for production employees announced are in addition to a wide range of other workforce and cost reduction actions that were outlined by Caterpillar on January 26th 2009.
In Aurora, 500 production employees will be laid off. In Decatur, 1,026 production employees will be laid off and in East Peoria, 584 production employees will be laid off. In addition to the production employees, a total of 416 support and management employees in Aurora, Decatur and East Peoria have also been notified of layoffs today. This includes 96 support and management staff in Aurora, 146 in Decatur and 174 in East Peoria.
Mr Bob Williams Caterpillar vice president for the Americas Operations Division said that "It is never easy to take steps that impact the lives of our employees and their families. But over the last few months, recessionary conditions have had a very negative impact on our customers and we must drastically reduce our production levels and cost structure in order to remain competitive for the long run."
Employees impacted by this decision were notified by Caterpillar that the layoffs would begin on April 13th 2009. In addition, various government agencies and other officials were notified of this decision under the United States Department of Labor's Worker Adjustment and Retraining Notification Act and the Illinois Worker Adjustment and Retraining Notification Act.
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