| Price Index - India | | | | 04-Feb | 03-Feb | Change | | ILPPI | 6495 | 6499 | -4 | | IFPPI | 6480 | 6475 | +5 | | INDSPI | 6488 | 6487 | +1 | | What is it? | | Currency | | AUD | 1.5469 | | BRL | 2.2980 | | CAD | 1.2324 | | CNY | 6.8220 | | EUR | 0.7725 | | GBP | 0.6929 | | INR | 48.8746 | | JPY | 89.3800 | | RUB | 36.1257 | | USD | 1.0000 | | ZAR | 10.0278 | | View Current Currency | | Metal Rates Cash Seller & Settlement | | Zn | USD 1160 | | | Ni | USD 11600 | | | Sn | USD 11400 | | | Al | USD 1382 | | | Cu | USD 3315 | | | View Current Metal Rates | | Steel Futures | | NCDEX | 23900 (19-Dec) | INR | 0 |  | | DGCX | 480 (03-Feb) | USD | 0 | | | LME-M | 330 (03-Feb) | USD | +10 |  | | LME-F | 290 (03-Feb) | USD | +10 | | | 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 unchanged on February 4th 2009 - 05 Feb 2009 The Indian domestic steel price index remained unchanged on February 4th 2009 .The Indian Long Product Price Index (ILPPI) fell by mere 4 points and Indian Flat Product Price Index (IFPPI) rose by 5 points. The overall Indian Steel Price Index (INDSPI) remained unchanged:
| Class | 03-Feb | 04-Feb | Change
| | ILPPI | 6499 | 6495 | -4
| | IFPPI | 6475 | 6480 | 5
| | INDSPI | 6487 | 6488 | 0
| | | | |
ILPPI – Long Product Price Index
IFPPI – Flat Product Price Index
INDSPI – Indian Steel Price Index
| Category | 03-Feb | 04-Feb | Change
| | PI - TMT | 6242 | 6238 | -4
| | PI - WRC | 6999 | 6999 | 0
| | PI - Angle | 6142 | 6131 | -11
| | PI - Channel | 6190 | 6170 | -21
| | PI - Joist | 5782 | 5779 | -3
| | | | |
| Category | 03-Feb | 04-Feb | Change
| | PI - Narrow Plates | 6174 | 6178 | 4
| | PI - Wide Plates | 6579 | 6557 | -22
| | PI - Hot Rolled | 6271 | 6284 | 14
| | PI - Cold Rolled | 7049 | 7049 | 0
| | PI - Galvanized | 6771 | 6771 | 0
| | | | |
To know more about these indices please visit
http://steelprices-india.com/spi_services/spi.html
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)
UGSL unit inks MoU with Maharashtra Government - 05 Feb 2009 It is reported that Uttam Galva Metallics Ltd, part of the INR 2,000 crore Uttam Galva Group, has signed a MoU with Government of Maharashtra for setting up a project to manufacture half a million tones of Pig Iron.
As per report, the plant located at Wardha, Maharashtra will see an investment of INR 1096 crore. The state of the art plant will be an integrated facility for steel making complete with coke oven and sinter plant. The project will also generate employment opportunity for close to 380 people.
Mr Rajinder Miglani chairman of UGML said that “We are confident that this backward integration project will be the most sophisticated pig iron facility in the country and will be implemented in record time and set new benchmarks for the industry. It is a great opportunity for us. The project has been made possible with the help of Government of Maharashtra, which provides great support and an encouraging environment for companies to operate. With continued support & encouragement from the Maharashtra Government we hope to grow this Endeavour exponentially in the coming years.”
Steel pricing trends in India - 05 Feb 2009 A steel user, however big or small, is always concerned about steel buying as it is normally a big ticket item, but there is no bench mark available to steel buyers to compare their transaction prices, which in a big way decided their bottom line. Lastly, steel has been very volatile in last 6 months and has effected many users in a very severe way making it all the more important to track the prices and trends.
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This would assist persons, including steel makers, traders, users and others, who are connected with industry in some way to asses the steel pricing trends and utilize in their day to day working to take considered decisions.
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Visa Steel Q3 sales down by 17%YoY - 05 Feb 2009 My Iris reported that Visa Steel swung to loss for the quarter ended December 2008 due to higher cost of interest and depreciation.
During the quarter, it reported loss of INR 247.45 million compared with a profit of INR 135.81 million in the same quarter previous year.
As per report, it net sales downy by 16.91% to INR 1,631 million, while total income for the quarter fell by 17.69% to INR 1,631.19 million, when compared with the prior year period. During the quarter, the operating margin of the company dropped to 2.69% compared with 12.06% in the previous year period.
| As at | Dec'08 | Dec'07 | Change
| | Net Sales | 1,631.19 | 1,963.14 | -16.91%
| | Net Profit | -247.45 | 135.81 | -
| | | | |
(In INR million)
The report added that interest cost increased 6.30 times to INR 87.17 million while depreciation cost increased 94.59% to INR 92.51 million over previous year period. The company is engaged in the business of manufacturing of Pig Iron, Coke, Ferro Chrome and Chrome ore based products and trading of raw materials for steel industries.
(Sourced from myiris.com)
Production pruning - Mahindra Forgings reduces working days at Chakan - 05 Feb 2009 Mahindra Forgings Ltd has announced that on account of slowdown in demand for Company's products it has been decided to align the Company's production plan with expected demand for the month of February 2009.
Accordingly, the Chakan plant of the Company will work for 4 days a week instead of six days a week till further information.
(Sourced from Equity Bulls)
Ms Gandhi to flag off rail project at Rohtas in Bihar - 05 Feb 2009 PTI reported that work on the 1,805 kilometer long Eastern Dedicated Freight Corridor project would start next week when Ms Sonia Gandhi Congress President inaugurates it in Bihar's Rohtas district.
Ms Gandhi along with Mr Lalu Prasad Railway Minister will flag off the work on the project on February 10th 2009.
Over the last 2 to 3 years rail freight traffic has grown by 8% to 11% and is projected to touch 1100 million tonne by the end of the 11th Five Year Plan. As per report, the INR 30,000 crore Dedicated Freigh Corridor project, one of the flagship projects of railways is envisaged to carry the projected volume of freight traffic.
While, The Eastern Freight Corridor project aims to link Dankuni in West Bengal with Ludhiana in Punjab, the Western Corridor links Delhi with Mumbai.
The traffic on the Eastern Corridor mainly comprises coal for the power plants in the northern region of UP, Delhi, Haryana, Punjab and parts of Rajasthan from the Eastern Coal fields, finished steel, food grains, cement, fertilizers, limer stone from Rajasthan, to steel plants in the east and general goods.
(Sourced from Press Trust of India)
CAPEX Cuts - Look for opportunities in downturn - JSW official - 05 Feb 2009 PTI reported that JSW steel would review all its Greenfield projects, a top official of the group today advised entrepreneurs to turn the current economic downturn into opportunities.
Mr Biswadip Gupta MD of JSW Bengal Steel said that "There is a downturn in manufacturing. But these are also moments of opportunity because necessity triggers innovation. Therefore, we need people who can develop cost effective processes."
Mr Gupta’s comments came a day after JSW Steel said in a financial statement that it had put all Greenfield projects under review and these would be taken up at an appropriate time after the condition of the market improves.
(Sourced from Press Trust of India)
Steel makers asked to forget iron ore links under MoU in Orissa - 05 Feb 2009 The Hindu reported that the steel companies dreamt of having a cakewalk to captive iron ore mines by virtue of their memoranda of understanding signed between them and Orissa government may face a fresh hurdle.
Mr Pyari Mohan Mohapatra Rajya Sabha member and Biju Janata Dal leader opposed the principle of captive mining.
To initially settle in, the steel companies that are setting up plants should be given the facility of captive ore mines to meet 25% of ore requirement while rest 75% of ore should be sourced on commercial basis, Mr Mohapatra mooted the idea while inaugurating Steelrise 2009’, a 2 day conference on steel industries that got under way here.
Mr Mohapatra said that profit was highly weighing in favor of lessees and Centre was still persisting with the royalty at the rate of INR 27 per tonne. He said that “For this matter, relationship between State and Centre is highly strained.”
Member of Upper House did not favour that the State government should go overboard to facilitate setting up plants as proposed by steel companies. The only thing Orissa could do that it would play the role of umpire. Companies should start dialogue directly with local people to come up with their facilities.
Mr Mohapatra, who had long years of experience in State bureaucracy, rubbished the propaganda that Steel sector generated huge employment opportunities. He said that “Although there was a theory that one direct employment created more than 100 indirect employments, my assessment says it does go beyond double digit.”
He said that steel companies must take Micro Small and Medium Enterprises along with them to see the multiplier effect of industrial growth. The 2 day conference would see CEO of many big and small companies congregating here to discuss the contentious issues.
During past few years, the State government signed 49 MoU with different companies for setting up steel plants with a combined production capacity of more than 75 million tonne per annum for which investment to the tune of more than INR 200,000 crores has been envisaged. He also came down heavily on companies for not taking up rehabilitation and resettlement in true spirit.
(Sourced from The Hindu)
Farmers block GMR power project in Chhattisgarh - 05 Feb 2009 IANS reported that GMR Energy's plans to build a 1,200 MW coal fired power project in Chhattisgarh Raipur district has hit a major roadblock with local farmers vowing to go to any extent to block the INR 55 billion facility.
The India government's efforts to acquire about 1,100 acres for the project in Raikheda village, some 35 kilometer from state capital Raipur have been opposed by the farmers, who say the plant will pollute the region, endangering the health of thousands of villagers.
The government held a public hearing on January 15th at Raikheda on land acquisition. But the farmers not only refused to hand over their holdings but also asked the company to recall its agents urgently.
GMR officials, however, said that most villagers wanted the project.
Mr Anil Kumar Jain VP of GMR Energy said that "A majority of families are in favour of the plant. Those who are opposing it will be convinced of this. The company is also looking into the demands and concerns raised by the farmers at the public hearing. We want to commission the first unit by 2012 and are directly purchasing land from the farmers."
Mr Jain said that nearly 60% of the project land belongs to some 250 families of Raikheda village, while the remaining 40 percent is owned by the government. GMR Energy signed the deal with the mineral rich state for the project in June 2007.
Mr Ganguram Baghel, who is leading the protest said that residents of Raikheda and adjoining villages are already facing health problems due to pollution caused by units in the neighbouring Siltara industrial area.
Mr Baghel said that "For years, people have been suffering from skin cancer and other serious diseases caused by severe pollution. Villagers don't want to commit suicide by allowing another major project that will consume about 17,000 tonne of coal daily."
Mr Raju Sahu of Raikheda said that "We don't like any power plant here. We have to stop the GMR project anyhow. If the plant is allowed to come, the pollution will kill us."
Industry department officials said that farmers would withdraw from the agitation if good jobs and attractive compensation packages were offered.
According to the state's industrial policy, those who give up land for industries will be given jobs and attractive compensation. The officials said that "They (farmers) can be persuaded if good jobs are offered in the project and heavy compensation for land is paid besides an assurance that the plant will not add to the pollution in the area."
(Sourced from IANS)
Recession reports - India may announce 3rd stimulus package soon - 05 Feb 2009 The Financial Express quoted Mr Ashwani Kumar minister of State for Industry as saying that the India Government is likely to announce a third stimulus package soon to fuel economic growth.
Mr Kumar said that "There will be sector-specific packages announced very soon to boost consumption. There will be some packages for the infrastructure sector as well as for exporters." He, however, did not divulge any details about the proposed package.
He said that the current year would be a difficult year, but the country would still clock a respectable 6.5% to 7% growth. He added that the recent monetary and fiscal measures initiated by the Reserve Bank and Finance Ministry would take around six months to make their impact felt.
He added that comparing India's economy with China, India's economic growth momentum has been on the back of domestic consumption while that of its neighbour has been export driven.
Mr Kumar said that "Domestic consumption is not shaken. When the world starts getting out of the morass it is in right now, India will be in the front league, we have to be realistic and accept that we will not grow at a rate of 8.5% or 9%. The rest, except China will show negative growth. Despite the turbulence, India has been able to insulate itself."
(Sourced from The Financial Express)
Maruti Suzuki January sales up by 5.39% - 05 Feb 2009 The Financial Express reported that Maruti Suzuki has 5.39% rise in its sales during January on the back of its highest ever monthly sales.
Suzuki in a statement said that Maruti Suzuki India sold a total of 71,779 vehicles last month compared with 68,107 units in the year-ago period.
After September 2008, MSI's sales were declining drastically for the next 3 consecutive months at 7.1%, 27.4% and 10%, respectively. It said that the previous highest sales were registered at 71,772 units in March, 2007.
Maruti Suzuki said that the domestic sales of MSI stood at 67,005 units compared with 63,459 units in the same month a year ago, up by 5.59%.
As per report, exports also grew by 2.71% at 4,774 units against 4,648 units in the corresponding month last year. Sales of its once bread and butter model M800 up by 1.85% for the first time in the recent many months at 5,571 units against 5,470 units last year.
The A2 segment comprising A-Star, Alto, Zen Estilo, Swift and WagonR sales stood at 46,899 units against 45,957 units, registering an increase of 2.05%. It posted a robust over 2 fold growth in the A3 segment at 6,590 units against 2,939 units last year. It total passenger car sales moved northward by 5.68% to 66,819 units against 63,227 units last year.
(Sourced from The Financial Express)
Bhuwalka Steel pledge 30% stake with banks - 05 Feb 2009 Bhuwalka Steel Industries Ltd has announced that the Company have been informed by Mr Suresh Kumar Bhuwalka main promoter of the Company, that 1556170 no of equity shares of the Company have been pledged till now as securities against bank limits sanctioned to Bhuwalka Steel Industries Ltd.
The pledged shares work out to 30% of the paid capital of the Company.
(Sourced from Equity Bulls)
HPCL commissions common carrier pipeline - 05 Feb 2009 Projects today reported that Hindustan Petroleum Corporation has commissioned its INR 1,757-crore Mundra Delhi common carrier pipeline on February 3rd 2009. The project has been commissioned within the scheduled time of 36 months.
As per report, this pipeline will enable transportation of oil products from HPCL's refineries as well as of others such as Indian Oil Corporation, Essar, Reliance Industries and MRPL. It can also carry imported products if there is a domestic shortage.
The pipeline connects the supply centers in Gujarat in the west to the consumer areas in various states, including, Gujarat, Rajasthan, Haryana, Delhi, UP, Punjab and further North. The main pumping station of the pipeline is at Mundra with 2 intermediate pumping stations in Gujarat at Santhalpur and Palanpur and 3 in Rajasthan at Awa, Ajmer and Jaipur. The pipeline system consists of a storage terminal at Mundra and marketing terminals with truck loading facilities at Palanpur, Ajmer, Jaipur, Rewari and truck as well as rail loading facilities at Bahadurgarh. The system has 76 storage tanks with a combined capacity of 611,000 kilo liters.
The report added that the pipeline has been commissioned under the principle of common carrier as laid down in the Petroleum Product Pipeline policy, which ensures optimum capacity utilization. According to the policy, 25% of the capacity is to be offered by the promoters to others for utilization. Plans are in the pipeline to increase the current pipeline capacity of 5 million tonne per annum to 6 million tonne per annum in Phase II of the project.
(Sourced from projects today)
NTPC and BHEL plans delayed over patent dispute - 05 Feb 2009 India Infoline News Service reported that the disagreement is related to patent ownership for technology to generate electricity by covering coal into cleaner fuel that is burned in a gas turbine combined cycle.
According to a report, NTPC Ltd and Bharat Heavy Electricals Ltd plans has been delayed because of patent dispute over intellectual property rights to jointly set up less polluting power generation plants.
The report added that the disagreement is related to patent ownership for technology to generate electricity by covering coal into cleaner fuel that is burned in a gas turbine combined cycle.
(Sourced from India Infoline News Service)
Bajaj two wheeler sales down by 34% in January 2009 - 05 Feb 2009 The Financial Express reported that Bajaj Auto has 34% decline in two wheeler sales in January at 110,363 units against 167,592 units in the same month last year. Motorcycle sales during the month also declined by 34% to 109,666 units compared with 166,492 units in the corresponding month last year.
The company in a statement said that three wheeler sales during the month stood at 21,985 units against 24,601 units in the year ago month. Exports during the month, however, grew by 24% at 54,027 units against 43,533 units.
Bajaj said that it is targeting to sell around 20,000 units of its latest model XCD 135 DTS-Si, in the next month.
(Sourced from The Financial Express)
Directory of Overseas Scrap Suppliers to India - 05 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.
Directory of Shipyards and Marine Service Providers in India - 05 Feb 2009 The Indian maritime sector has entered a high-growth phase fuelled by the country's spectacular economic growth and rapidly increasing seaborne trade. The most striking feature of this development is the simultaneous buoyancy in all the sub sectors shipping, ports and shipbuilding. This provides tremendous opportunities for all the players in the maritime field.
With the Government encouraging private sector participation in port infrastructure development under the National Maritime Development Program, the Ports & Shipping Industry is poised for spectacular growth in order to meet the surge in demand.
Published in October 2008, '
Directory of Shipyards and Marine Service Providers' has been comprehensively researched and prepared, to bring you a fully up to date guide to Indian shipyard industry.
Why spend hundreds of hours searching for new contacts? Invest in a copy TODAY!
Content:
This report covers name and product details of 49 shipyards and marine service providers of India in alphabetical as well as location wise order. Look at the information you'll get in the 'Directory of Shipyards and Marine Service Providers'
• Company name -49 entries
• Address-49
• Email-35
• Phone number-48
• Fax number -42 entries
• Mobile -6 entries
Format: PDF File
Total no of pages – 35
Delivery by Email on receipt of payment
Price:
USD 150 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.
BDI surges by 15% on February 4th 2009 - 05 Feb 2009 Capsize | | BCI | Change
| | INDEX | 2,380 | +287
| | SPOT 4 TCE AVG | 21,810 | +3,204
| | February 2nd | 18,606 |
| | Year Ago | 99,886 |
| | | |
All except INDEX in USD
Change is with respect to February 3rd 2009 numbers
Panamax| | BPI | Change
| | INDEX | 1,000 | +119
| | SPOT 4 TCE AVG | 8,005 | +958
| | February 2nd | 7,047 |
| | Year Ago | 45,330 |
| | | |
All except INDEX in USD
Change is with respect to February 3rd 2009 numbers
Supramax| | BSI | Change
| | INDEX | 681 | +125
| | SPOT 4 TCE AVG | 7,121 | +1,307
| | February 2nd | 5,814 |
| | Year Ago | 40,182 |
| | | |
All except INDEX in USD
Change is with respect to February 3rd 2009 numbers
Credit Suisse sees its iron ore futures market growing in 2009 - 05 Feb 2009 Reuters reported that Switzerland's bank Credit Suisse expects trading volumes at its over the counter iron ore paper market to more than double to over 15 million tonnes by end 2009.
Mr Kamal Naqvi head of fund coverage of commodities at Credit Suisse said that uncertainty in the global economy and increased volatility in iron ore and steel prices and volumes are likely to encourage steelmakers to do more business on the spot market.
London based Mr Naqvi said that "It is in the steelmakers' advantage to access the spot market at the moment as they can purchase at a price and volume that is profitable. The benefit clearly is flexibility. The spot iron ore market has allowed people to maintain margins and adjust import volumes and timing in a way that the benchmark system does not allow."
Mr Naqvi said that "If you're a steelmaker looking to negotiate your benchmark contract for 2009/2010, you are unlikely to be certain on the volume of steel you will produce or the likely finished steel price over the year. So, the volumes contracted for 2009/2010 may be lower than in recent years, with any upward surprise in volume being met by spot purchases.”
He said that "Over the next 6 to 18 months, the outlook is going to be very volatile. That’s a very difficult environment to maintain an annual contract price and volume and I think that's increasingly being recognized."
Mr Naqvi expects the trading volumes in its OTC paper market for iron ore to jump to above 15 million tonnes to 20 million tonnes from around 7 million currently. He does not expect the spot market or index based pricing mechanisms to replace the traditional contract system, but said that the old system has taken some big hits this year. He said referring to 2008 benchmark negotiations that "Participants on both sides of the annual negotiation system have broken with tradition in some form last year. It is hard not to see that being a positive for the credibility of some alternative approaches."
Mr Naqvi said that should Chinese mills consider signing anything less than a yearly contract this would be a positive for the potential use of the OTC forward market.
Deutsche Bank and Credit Suisse's OTC market launched last May, offers cash based swaps, which are settled against published indices Metal Bulletin, Steel Business Briefing and Platts against spot physical iron ore, delivered China.
(Sourced from Reuters)
Outokumpu sees stainless steel market challenging in 2009 - 05 Feb 2009 Outokumpu said that stainless steel markets will remain very weak in the first quarter of 2009 and expects to make a loss in the period, but said it is taking decisive action in response to challenging markets.
It said in its fourth quarter report that visibility in stainless steel markets is currently very short base prices have declined further in early 2009. Current order intake represents about 50% of the Group's full production capacity.
Mr Juha Rantanen CEO of Outokumpu said that 2009 will be a challenging year. He added that "In late 2008, the global financial crisis hit the stainless steel markets with speed and power. As we did not reach our profitability target, we cannot be satisfied with our financial performance in 2008. Actions have been taken to decrease working capital, postpone investments and reduce costs."
Outokumpu is continuing to cut production at its plants and it announced temporary layoffs of over 2,000 people and reduction of about 250 jobs. It is targeting cost savings of around EUR 100 million in 2009. It booked a net loss of EUR 233 million for the 3 months ended December 31st 2008 as compared with a loss of EUR 16 million a year earlier.
Steel stock stands at lowest level - CISA - 05 Feb 2009 China Knowledge reported that China Iron and Steel Association published a report on Monday stating that the country's steel stock has fallen to the lowest level in several years.
The statistics from CISA show that the domestic composite steel price index dropped 21.82 points to 103.3 last December, representing a 17.44% decrease year on year. The price is up 0.98% or 1 point compared with the previous month.
China's National Bureau of Statistics released statistics showing that the output of steel and rolled steel for last December stood at 37.79 million tonnes and 48.82 million tonnes respectively down by 10.52%YoY and 1.69%YoY.
Though output and stock are down, since demand has also decreased, the country will be able to maintain a steady steel price in the domestic market.
(Sourced from China Knowledge)
Kobe Steel sees almost sevenfold Q4 net loss - 05 Feb 2009 Kobe Steel Limited said that fourth quarter losses will widen almost sevenfold from the previous period as the nation’s recession slashed demand from makers of cars. It added that losses will probably be JPY 29 billion for the 3 months ending March 31st 2009 as compared with a JPY 4.2 billion in the third quarter.
Mr Kazumasa Imai GM of accounting department at Kobe steel said that "The situation is becoming worse as we see the impact of output cuts and inventory adjustment."
Kobe Steel would produce 3.13 million tonnes of crude steel in the second half, down from 4.18 million tonnes in the first half. The company in December forecast it would cut second half output by 600,000 tonnes. It will cut the pay of directors and executives by 3% to 10% starting February 2009.
(Sourced from www.bloomberg.net)
Vale may have overpaid in Rio purchase - Analysts - 05 Feb 2009 Bloomberg reported that Vale do Rio Doce may have paid too much in its purchase of Brazilian iron ore and potash assets from Rio Tinto Group. The shares fell to the lowest price in a week losing 0.9% to BRR 27.75 in Sao Paulo trading.
JPMorgan said that the world’s biggest iron ore producer agreed last week to buy Rio’s Corumba ore mine in western Brazil for USD 750 million. That’s the equivalent of USD 229 tonnes for Corumba’s iron ore and near peak valuations of USD 249 tonnes.
Mr Rodolfo De Angele analyst of JPMorgan said that “We expected to see Vale being able to purchase assets at bargain prices. This doesn’t seem to be the case. Any acquisition in iron ore would only make sense at very low valuations.”
Analyst of Santander said that the sale comes as the world economic slump has caused commodities demand to collapse, forcing mining companies to cut workers and shed assets. Vale, based in Rio de Janeiro already has more competitive assets in Brazil than the one in Corumba.
Analysts led by Mr Felipe Reis said that “Vale is buying an asset that it does not really need and one that is not strategic and is paying top dollar for it. This is negative news.”
Santander said that the timing of the deal may also hurt Vale given its recent job losses. Santander said that “The political timing of this acquisition is not good.” It said that “The Company is laying off people at other mines in Brazil and at the same time spending money on acquisitions, which may create negative sentiment from union leaders and politicians alike.”
London based Rio said in a statement that Vale also is paying USD 850 million for Rio’s Potasio Rio Colorado potash project under development in Argentina. Rio gained 6.6% to 1,606 pence in London trading, snapping four days of declines.
(Sourced from Bloomberg)
Bulgarian 2008 steel output down by 40% YoY - 05 Feb 2009 According to data from Bulgarian Association for Metallurgy Industry, Bulgaria has produced 1,329 million tonnes of steel in 2008, down by 40% YoY as compared to the almost 2 million tonnes of steel produced in 2007.
The significant decrease in Bulgaria's total 2008 steel output comes from the crisis of the country's largest steel mill Kremikovtzi as well as from the effects of the global financial crisis, which were felt in the last quarter of 2008.
Mr Politimi Paunova executive director of Association for Metallurgy Industry said that, with the exception of the bad results from the last quarter of 2008, and of the crisis in the Kremikovtzi factory, the other Bulgarian steel makers achieved decent results in 2008. These include Stomana Industry, Promet, Helios Metalurg and Precis Inter Holding Jsc.
Bulgaria's production of long rolled sections actually doubled in 2008 despite the crisis. It grew from 400,000 tonnes in 2007 to 905,000 tonnes in 2008, largely thanks to Stomana Industry and Helios Metalurg. Bulgaria's steel exports declined by some 50% in 2008 but this was partially compensated by increased domestic consumption.
It may be noted that Bulgaria's steel industry had a production for BGL 6.5 billion in 2007. Of these, BGL 5.9 billion came from exports.
(Sourced from www.novinite.com)
Iron ore price negotiations - Seen falling by 30% in 2009 - 05 Feb 2009 Reuters reported that Iron ore prices are set to fall in 2009 after 6 years of price hikes as deteriorating demand triggers severe production cuts in the steel industry.
Negotiations between miners and steelmakers to set a benchmark price for 2009/2010 iron ore supply contracts are expected to be fierce, acrimonious and lengthy, as is often the case.
Analysts said that miners are expected to try to limit a steep fall in the contract price by cutting iron ore output to help balance the market. But with demand hit so hard in key steel consuming industries such as construction and automotive, steelmakers are likely to have the upper hand. It said that iron ore miners have slashed production to match weakening demand, but not enough to prevent a glut of material.
Ms Christina Lee analyst of Macquarie said that "After six consecutive yearly rises totaling almost 400%, iron ore prices are certain to fall due to major collapse in demand."
Mr Daniel Brebner global head of commodities at UBS said that "Even with a 40 % correction in contract price it will be second highest iron ore price in history and this is one of the worst recessions we've witnessed in 40 years."
UBS' Mr Brebner said that "You have not seen enough cutbacks on the iron ore supply side. We have seen significant cutbacks on steel that should create a significant surplus on iron ore and thus pressure on price."
As per report, the fall will mark an end to a bullish run for miners BHP Billiton, Rio Tinto and Vale which last year secured hefty prices hikes, some of almost 100%. The trio control about Q3 of the 800 million tonne annual market in seaborne iron ore.
(Sourced from Reuters)
Britain to break up notorious SS Lady - 05 Feb 2009 It is reported that Britain is to become a dumping ground for the world’s toxic ships after the EA granted permission for the break up of a notorious contaminated vessel.
The French aircraft carrier Le Clemenceau, which has been turned away from docks in India, Turkey and Greece, will be tugged to Hartlepool on Teesside this week after the EA approved the scrapping of large numbers of contaminated ships at a purpose built dock.
The vessel, which is laden with asbestos, mercury and PCBs, will join four second world war era American warships that have been moored there since 2003 waiting for permission to be broken up and sold for scrap.
The decision by the EA will infuriate environmentalists who have been fighting a legal battle to prevent Able UK from breaking up the ships. They argue that the process will release asbestos and toxic chemicals into an area already blighted by some of the highest asbestos related cancer rates in the country. However, the EA and the Health & Safety Executive said that careful management of asbestos and the use of a sealed dry dock to prevent chemicals leaking into the water system will ensure the facility is safe.
Mr Lord Mandelson, the business secretary, pressed for permission for the expansion of the ship recycling industry in Hartlepool when he served there as MP, arguing that it would create hundreds of jobs.
(Sourced from www.timesonline.co.uk)
Downsizing deals - Vale says paid leave decision just an option - 05 Feb 2009 Xinhua reported that Vale plan to put 17,800 employees on temporary paid leave was just a possibility and no employees had been put on paid leave yet.
Vale had earlier announced an agreement with eight trade unions on putting 17,800 workers on temporary paid leave.
Under the agreement, Vale employees will receive half of their regular wages per month plus a compensation of BRL 856 while on leave. Vale said that the paid leave plan was merely a possibility, which would be put into action only if necessary. It is still not known at this time whether the plan is needed and how many employees will be affected should it be applied.
If Vale decides to use the paid leave option, employees affected will be warned two weeks ahead. It has committed to maintaining, until May 31st 2009 the jobs of all workers who accept the leave deal.
(Sourced from www.xinhuanet.com)
S Korean CR producers to start importing HRC - 05 Feb 2009 It is reported that South Korean CRC producers have started to negotiate with foreign HRC producers since end of 2008. Their contract price was set at USD 440 to USD 550 per tonne FOB with a volume of several thousand tonnes or 10,000 to 20,000 tonnes.
In detail, the price was set at USD 450 per tonne FOB by South Korea and Taiwan, Russian, Turkey, USD 550 per tonne FOB by South Korea and Japan. Therefore, the import cost was accounted to be KRW 0.6 to KRW 0.7 million, lower than POSCO's offer of KRW 0.88 million or Hyundai Steel's price of KRW 1.02 million.
(Sourced from MySteel.net)
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Venezuela to increase iron ore production to 25 million tonnes by 2013 - 05 Feb 2009 Mr Hugo Chavez, President of Venezuela said that iron ore production is expected to rise to 25 million tonnes per year by 2013, with an investment of USD 8 billion.
Mr Chavez was speaking during a ceremony at the reactivation of the Cerro Bolivar mine in Ciudad Piar with an estimated production of 1 million tonnes for 2009
He added that "With this, we'll be increasing production 25% for all ores."
Current production is in the order of 21.3 million tonnes, including 18 million tonnes of raw iron ore and 3.5 million tonnes of liquid steel.
Mr Chavez did not mention the effects of the international financial crisis on the Venezuelan steel industry, considering that the fall in prices and demand has already stopped most of the regional briquettes producers, with relevant repercussions in production, sales and income.
Mr Chavez said that a new iron ore concentration facility is scheduled to start operations in September 2010, allowing for increased yield from the higher grade iron reserves. He also revealed that USD 57 million has been approved for a second stage and that an additional USD 149 million is required during 2009 to keep the project going, USD 57 million for the first quarter, which is the amount I'm approving now."
Mr Chavez further said that “As a long term goal, through 2018, production is estimated at 30 million tonnes, 25 million tonnes raw ore and 5 million tonnes of liquid steel, this projection illustrates Venezuela's industrial projection for the coming decade."
Mr Rodolfo Sanz, minister of Venezuela’s Basic Industries & Mining has pointed to an expected increase in iron ore production capacity which should raise steel production to 7.8 million tonnes per year by 2013 with the incorporation of the new 1.5 million tonnes per year Siderurgica de Orinoco facility.
Mr Sanz said that "We're going to increase Sidor's capacity from 4 to 6 million tonnes with a total of USD 200 million in investments in 2009." He added that it is important to note that steel production from Sidor dropped 729,000 tonnes, to 3,578,000 tonnes in 2008, 16.9% less than 2007 production of 4,308,000 million tonnes.
(Sourced from Venezuela News)
Hebei Steel moving forward on consolidation - 05 Feb 2009 It is reported that Hebei Steel Group, the result of a merger of two local steel mills, Tangshan Iron and Steel and Handan Iron and Steel, intends to go ahead with the consolidation from raw materials purchasing, production and sales respectively.
The group has set up a mining subsidiary in last September in a bid to merge the mineral assets of its three listed subsidies. The ore mine of Chengde Xinxin Vanadium and Titanium, now part of the group, has already been transferred to the group for free. Moreover, Hebei Iron and Steel Group is in early talks with Australian iron ore prospector Aurox Resources to finance the Aurox's 6-million-tonne iron ore project in last Oct
Senior official of the group told 21st Century Business Herald that "Hebei Steel Group is set to look for raw materials overseas as it ramps up production and beefs up competitiveness. Three listed companies would focus on their own specialty after the merger. Tangshan Steel has an edge in medium plate production, and produces substantial tonnage of construction Steel. Handan Steel focuses on steel plate, while Chengde Steel's advantage lies in vanadium and titanium products. And the group plans to consolidate the sales departments of its three subsidies into a unified one to take up the marketing and sales of the whole group.
Nevertheless, three listed companies have their independent financial operation since the local government is reluctant to suffer the loss of great sum of tax revenue. However, analysts greeted the deal with skepticism and warned that consolidation in China's steel industry faced huge hurdles and would proceed slowly at best. They doubt the fate of the smaller mills of the group like Wuyang Steel, Xuhuan Steel, and how the Caofeidian project, a joint venture between Tangshan Steel and Shougang, would proceed.
The small mines controlled by the group are very scattered, thus, it would be a tough task to consolidate the fragmented mining assets in the future.
(Sourced from MySteel.net)
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Downsizing deals - Tenaris Prudential lays off 270 - 05 Feb 2009 It is reported that more than 200 workers are out of a job in Calgary after their employer ran out of orders during what is normally the company's busiest time of the year. As per report, Steel plant Tenaris Prudential has laid off 270 unionized workers following a 6 day shutdown in late January.
Mr Wylie Craig president of United Steelworkers Local 7226 said that "It's tough to take. The orders are not there in a time when we are usually very busy."
Mr Craig said that "The horizon looks worse. At the end of the day, our cheque all comes from the same bank account. And if that account is losing money, or there is no money in it, we are all in trouble."
In early January 2009, management told workers that at the end of the month, it would halt production for 6 working days. As of January 23rd 2009, it had 380 active employees, 240 of whom were laid off.
(Sourced from calsun.canoe.ca)
Gindalbie shareholders approve AnSteel share placement - 05 Feb 2009 Mining Weekly reported that Gindalbie Metals received overwhelming support from its shareholders for the proposed USD 16,206 million shares placement to its JV partner Ashan Iron & Steel, or AnSteel.
The shareholder approval cleared the way for the completion of the USD 5,341 million equity funding package for the USD 1.8 billion Karara iron ore project, in Western Australia.
Gindalbie would now progress with the allotment of more than 190 million shares to the Angang Group Hong Kong, at a price of USD 0.85 per share. The proceeds of the placement would be used to fund Gindalbie’s second equity contribution of USD 14,338 million towards the equity funding of the Karara project. AnSteel was also required to make a final contribution of the same amount.
Gindalbie and AnSteel have agreed to reschedule the final contributions to the first half of 2009. The JV firm, Karara Mining, currently had about AUD 150 million in cash reserves from earlier equity payments, and the rescheduled timeframe would have no impact on the ongoing engineering, design and development work currently being carried out for Karara.
Predevelopment activities were already well advanced, with site construction poised to start subject to receipt of final environmental approvals.
The share placement followed the recent conditional approval received by the China Development Bank, for up to USD 1.2 billion for the Karara project loan.
Mr George Jones chairperson of Gindalbie said that “The completion of this share placement represents a pivotal turning point in the company’s history and corporate development as an emerging Australian iron ore producer.”
He added that “The Karara project is ready to go subject to final governmental approvals, with funding solutions, engineering and pre development activities well under way.”
(Sourced from Mining Weekly)
Update on Sino Korean ship plate deals for Q2 shipments - 05 Feb 2009 According to information made available in Tokyo, it is likely that China's integrated steelmakers will enter the final stages of negotiations in the first week of February on their deals of ship plate exports to South Korea's various shipbuilding companies for shipments in the April to June quarter of 2009. Some deals under negotiation are intended for March to May 2009 period shipments.
There are prospects that Shoudu Iron & Steel Co will try to settle its deals at USD 630 per tonne FOB, while Jiangsu Shagang Group Co Limited will do likewise at USD 620 to USD 610 per tonne FOB. The new prices, if agreed, will mark a major reduction of USD 200 as compared with the existing settlements for January to March period shipments. Most of the existing settlements are estimated at a level of USD 840 per tonne C&F, with that of USD 900 per tonne C&F in part.
In South Korea's shipbuilding industry, three major companies still find themselves in favorable operations. The three companies are Hyundai Heavy Industries Co, Samsung Heavy Industries Co and Daewoo Shipbuilding & Marine Engineering Co. But it is understood that the nation's small and midsize shipbuilding companies have an enhanced sense of crisis.
South Korea's various shipbuilding companies indicate moves to use heavy plates in hand as much as possible so that they can reduce stocks of bought in heavy plates while holding back on new purchases of heavy plates. Besides, they are said to be taking a tough position on purchased materials, particularly commodity grade heavy plates bought from China.
If the Sino Korean ship plate deals are settled at around USD 630 per tonne FOB this time, the new prices will become much lower than what POSCO currently charges for its domestic sales of ship plates. POSCO's domestic price is settled at KRW 920,000 per tonne. Also, the new prices of Chinese ship plates for export will become lower than domestic prices in China, where Baosteel Co Limited sets its domestic price of ship plates at CNY 4,622 per tonne after value added tax for March shipments.
Moreover, if the Chinese steelmakers' contract volumes of ship plate exports to South Korea increase markedly, it could lead to a diminution in POSCO's domestic supplies of ship plates, getting on the Korean steel giant's nerves. There is even speculation that the Chinese ship plate exports to South Korea may provoke dumping accusations there, given the Chinese export prices at a fairly low level.
(Sourced from TEX Report Limited)
Shanxi closes 15 million tonnes iron making capacity in 2008 - 05 Feb 2009 Shanxi Daily reported that North China's Shanxi province has washed out nearly 15 million tonnes of outdated iron-making capacity last year amid the overall market slowdown.
According to the report, a host of steel mills have slashed production in response to the tumbling demand and prices; while most less competitive mini mills get squeezed out of the market.
Statistics show that added value for local metallurgical industry expects to reach CNY 70 billion in 2008 up by 20.06% from the year before. Sales revenue in the year is speculated to reach CNY 250 billion up by 19.04%; pretax profit of CNY 20 billion down by 21.3%; profit of CNY 6.5 billion down by 56.7%.
Crude steel may realize production of 24 million tonnes in the year, down 4% from a year ago; pig iron output of 30.4 million tonnes, down by 19%; steel products of 19.6 million tonnes down by 6%; aluminum oxide of 3.2 million tonnes up by 5%; electrolytic aluminum of 0.95 million tonnes down by 12%; magnesium metal of 0.33 million tonnes down by 10%.
To ensure sustainable growth, local authority has issued a slew of countermeasures like boosting market sentiment, raising up internal productivity, lowering production costs, strengthening the inefficient capacity closure efforts and encouraging industrial consolidation etc.
(Sourced from Shanxi Daily)
Chinese coke price rebound likely to stop - 05 Feb 2009 It is reported that the price of coke continues its increase trend after the Spring Festival in many regions. Analysts believe this round of price increase is resulted from the production cutback and the price hike before the holiday. And the price rise is anticipated to continue until March when most of miners resume their productions, however, the scope of price increase won't be wide.
Data shows in February 3rd, the price of the second grade metallurgical coke in the East China market posted at CNY 1700 per tonne to CNY 1850 per tonne up by CNY 150 per tonne to CNY 250 per tonne from the earlier January. While in January, Shanxi Coking Association set its January coke guiding price at CNY 1750 per tonne up by CNY 150 per tonne from that of CNY 1600 per tonne in December last year.
According to the analysts, the coking coal supply was tight in Shanxi before the holiday, owing to the fact of many miners suspended or cut their productions, and the tight supply boosted the price of coking coal, which then pushed up the coke price. Meanwhile, the fact of comparative difficult to ship the products during the Spring Festival also contribute to the coke price hike.
For the past two months, coke price has witnessed an increase of 40%. This is mainly because of the warming up demand from the small steel mills' production resumption as the national economic stimulus package starts to effect. But, insiders believe that the space for coke price to further increase is limited since the coking coal production would increase shortly and the transportation capacity would also recover soon as the holiday come to an end.
(Sourced from MySteel.net)
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Chinese auto sector may outperform India in 2009 - Merrill - 05 Feb 2009 ET quoted Merrill Lynch in its report on Asia's auto sector said the automobile industry in China is poised to perform better than that of India in 2009, as the country's recent state sponsored measures to boost demand is expected to benefit its sector there.
Merrill said in a report “Slowing economic activity, resulting in demand capitulation from key user segments such as construction and mining will likely worsen sales trends. It said we expect growth in sales of durables such as cars and two wheelers to remain muted in the low single digits, driven by falling disposable incomes and financing constraints."
Merrill said against this backdrop, earnings of the auto industry here are likely to remain negative, possibly till the first half of 2009-10, according to the investment bank. The two-wheeler segment may perform slightly better than the other segments in the industry because of lower competition. It said despite falling profits, Merrill feels the weaker performance in stocks here may be restricted. "With respect to valuations, most segments trade at the middle or low end of the historical average. As such, despite falling profits, we expect relative underperformance to be restricted."
(Sourced from The Economic Times)
OneSteel restructures management team - 05 Feb 2009 It is reported that Australia's second biggest steelmaker OneSteel Ltd has cut its management team to save support costs amid a slowdown in global markets.
OneSteel said the restructure is intended to improve accountability and reduce the cost of support activities.
The restructured management team includes seven members Mr Tony Reeves, Mr Greg Waters, Mr Mark Parry, Mr Andrew Roberts, Mr Steve Hamer, Mr Leo Selleck and Mr Bill Gately.
Some management team members will take on extra responsibilities, including Mr Waters, the chief executive of recycling, who will assume strategic marketing responsibility for OneSteel's export iron ore business, on top of current responsibility for OneSteel's Australian and international ferrous and non-ferrous recycling businesses.
Mr Hamer, chief executive of distribution, adds the existing distribution businesses including, Steel & Tube, Metaland, Sheet, Coil & Aluminium and Piping Systems to his current responsibilities for the Australian Reinforcing Company and OneSteel Reinforcing businesses.
Mr Geoff Plummer MD of OneSteel said “We now face new opportunities and challenges including weaker economic conditions and are adjusting our structure and cost base to best position the company for the future.”
Nisshin Steel raises its stake in Acerinox to 15% - 05 Feb 2009 Reuters reported that Nisshin Steel Co has spent JPY 12.97 billion to raise its stake in Spain's Acerinox SA to 15% from 11.3%.
The two firms cooperate in the stainless business in the United States and Malaysia, among other locations.
(Sourced from www.reuters.com)
Port Hedland ships 13.6 million tonnes in January 2009 - 05 Feb 2009 Dow Jones reported that the Port Hedland Port Authority exported 13.63 million tonnes of iron ore in January 2009, a 2.4% increase on the previous month.
The Authority didn't provide any further breakdown of the figures, which collate monthly iron ore shipment data from major port user BHP Billiton Limited. BHP and new entrants Fortescue Metals Group Limited, and Atlas Iron are among others that ship from the port.
In December 2008, BHP shipped 10.64 million tonnes and Fortescue 2.67 million tonnes, making a total of 13.31 million tonnes. Slowing demand from steelmakers has forced many global iron ore miners to cut production, but exports from Port Hedland seem to be holding up, based on the Authority's data.
(Sourced from Dow Jones)
Czech Republic 2008 steel output down by 10% YoY - 05 Feb 2009 According to data from the World Steel Association, crude steel production in the Czech Republic decreased by 10% YoY to 6.4 million tonnes in 2008, the fall being twice deeper than within the entire EU.
Mr Petr Hlinomaz analyst at BH Securities said that "In 2009 we can expect a further decrease by 10 percent at least. We do not expect the Czech economy to improve until the end of 2009, but in the steel making industry the turn will probably come later."
The Steel Federation, associating major Czech and Slovak steel makers, expects this year's output to decrease by 10% to 20%. Last year's fall is not the worst one. Between 1990 and 1991 the output fell by one fifth, mainly due to a wind down in the sector. At the end of the last century the steel production declined in connection with the Asian crisis.
Crude steel output in the Czech Republic since 1989 | Year | Output | Change
| | 1989 | 10,724 | -
| | 1990 | 10,98 | -5.9%
| | 1991 | 7,964 | -21%
| | 1992 | 7,322 | -8.1%
| | 1993 | 6,776 | -7.5%
| | 1994 | 7,085 | 4.6%
| | 1995 | 7,184 | 1.4%
| | 1996 | 6,509 | -9.4%
| | 1997 | 6,750 | 3.7%
| | 1998 | 6,498 | -3.7%
| | 1999 | 5,616 | -13.6%
| | 2000 | 6,216 | 10.7%
| | 2001 | 6,316 | 1.6%
| | 2002 | 6,512 | 3.1%
| | 2003 | 6,783 | 4.2%
| | 2004 | 7,033 | 3.7%
| | 2005 | 6,189 | -12%
| | 2006 | 6,862 | 10.9%
| | 2007 | 7,056 | 2.8%
| | 2008 | 6,387 | -9.5%
| | | |
In million tonnes
Sourced from Steel Federation (Hutnictvi zeleza)
Chinese iron ore surplus disappears and prices up - 05 Feb 2009 Reuters reported that a massive build up of iron ore stockpiles in China that prompted suppliers to defer millions of tonnes in shipments last year is ending, pushing spot prices higher.
According to analysts' estimates around 68 million tonnes of ore had piled up at Chinese ports by late November with another 125 million tonnes stored at steel mills,
The build-up had led BHP, the world's biggest diversified miner, to defer delivery on 6 million tonnes, or around 5% of its annual production, which it sold at a discount on the spot market instead, further depressing prices.
Mr Marius Kloppers CEO of BHP said as a result of China's destocking, spot market prices for ore had rebounded to within 10% or 15% of last year's contract price. He said that "The destocking is essentially complete, after BHP reported a 2.2% rise in first-half profit to USD 6.13 billion before writedowns that pared net profit to USD 2.62 billion.”
He added that barring a second collapse in demand, the company hopes to keep up production in the second half.
Mr Kloppers said "We saw the price during the destocking cycle track below the marginal cost of production. But with the destocking cycle nearly complete in China, we have seen it trade up to not very far from where it was settled last March. He said that he hoped to see BHP's first half production of ore maintained in the second half, totalling 130 million tonnes for the full year, but warned BHP was not immune to the strong winds that are blowing" in commodities markets.”
A contraction in the next benchmark price would ring down the curtain on half a decade of uninterrupted price hikes that benefited the mining sector.
(Sourced from Reuters)
Production pruning - ArcelorMittal Kriviy Rih output dips by 43% in January - 05 Feb 2009 Interfax reported that ArcelorMittal Kriviy Rih Ukraine's biggest steel producer, reduced roll production tentatively 42.9%YoY to 337,000 tonnes in January.
According to the report, crude steel production fell 53.7% to 297,000 tonnes, pig iron down by 50.5% to 282,000 tonnes and sinter down by 39.2% to 553,000 tonnes.
The plant produced 312,000 tonnes of roll in December.
ArcelorMittal Kriviy Rih specializes in long products, in particular rebar and wire rod. Its main markets outside the CIS are the Middle East, Europe, Algeria and other African countries.
ArcelorMittal Kriviy Rih raised commercial roll production 3.8% to 7.1 million tonnes in 2007. The company controls around a fifth of Ukraine's steel market.
Directory of Steel Pipe Makers in China - 05 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.
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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
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Baosteel ties up with Xinjiang in local iron ore mining - 05 Feb 2009 It is reported that Baosteel Group subsidiary Xinjiang Bayi Steel has inked a framework cooperation agreement with Xinjiang Hetian government in local mineral resources' prospecting & mining, marking a key step for the mill in local metallurgical sector's developing and consolidation. In addition to jade, Hetian also boasts rich mineral deposit like iron and coal. And the deal mainly involves the Buqiong iron mine in local Pishan County.
Bayi Steel will also establish deep-processing plant in local to raise added-value of its products. The steel mill has expanded swiftly after merged into Baosteel, and is expected to consume 20 million tonnes of iron ore per year by 2012 according to its production target of 10 million tonnes of steel by then.
(Sourced from MySteel.net)
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Annual Report on China's Steel Market in 2008 and the Outlook for 2009 - 05 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
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Turkey scrap market remains weak - 05 Feb 2009 Yieh.com reported that Turkey's scrap market went bleak again as buyers stayed out of the market.
European export price of H1&H2 (70:30) mixed scrap to Turkey was being quoted at CFR USD 278 to 280 per tonne two weeks ago, but now it drops to around USD 255 per tonne.
At present, the US H1&H2 (80:20) mixed scrap export prices hit CFR USD 275 per tonne, down by USD 10 per tonne compared with 2 week ago.
(Sourced from www.yieh.com)
IUD head calls for unity to fight crisis - 05 Feb 2009 Kyiv Post cited Mr Serhiy Taruta the Industrial Union of Donbas as saying that Ukraine needs political stability and consolidation to overcome the economic crisis, according to the head of one of the country's biggest corporations.
He said that "The political authorities should consolidate and address the crisis. Unfortunately, this is not happening."
Mr Taruta said that the bad reaction of Ukraine's economy to the global crisis was partially explained by the fact that Ukraine is export-oriented. He said political stability and coordination between all branches of power would have given the country the opportunity to start a real anti-crisis program. He added that the government is trying to act, but is not able to do enough. In this regard, he said he was pleased with the fact that the government has involved experts like one of the founders of IUD, Mr Vitaliy Hayduk, who is now heading the prime minister's expert group.
Speaking about the IUD's tasks, he noted the importance of cooperation with international banks. He said that "It is important to hold dialog with them, so that they work with Ukraine, believe in our companies."
Speaking about metallurgy as a key business of IUD, Mr Taruta said that the trends on the global steel market remain unchanged. The businessmen added that growing gas prices are increasingly affecting the industry, but this could be tackled by introducing new technologies.
On the other hand, Mr Taruta said that these initiatives require a great amount of investment and a lot of time to implement. According to him, the corporation is to finish all the projects it has started in energy saving, including switching to pulverized coal injection technology, which greatly decreases natural gas consumption. However, he said that due to the crisis, some investment projects might be postponed.
(Sourced from Kyiv Post)
Downsizing deals - AK Steel to recall 500 workers at Ashland plant - 05 Feb 2009 AP reported that AK Steel Holding Corporation is recalling more than 500 hourly workers who had been laid off at its plant in Ashland. It is restarting its blast furnace at Ashland Works while it idles the Middletown furnace for maintenance work.
Meanwhile, AK Steel has planned to begin 45 days of maintenance in early March 2009 and expects to lay off about 50 Middletown workers during the maintenance.
Mr Scott Rich of the International Association of Machinists and Aerospace Workers Local Lodge 1943 said that 87 Middletown workers already have been laid off. Most of the 700 employees in Ashland also have been laid off because of decreased business.
(Sourced from www.ap.org)
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