| 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 | 1.5827 | | BRL | 2.3334 | | CAD | 1.2357 | | CNY | 6.8383 | | EUR | 0.7831 | | GBP | 0.6995 | | INR | 49.0270 | | JPY | 89.5580 | | RUB | 36.0337 | | USD | 1.0000 | | ZAR | 10.2035 | | View Current Currency | | Metal Rates Cash Seller & Settlement | | Zn | USD 1095 | | | Ni | USD 11200 | | | Sn | USD 10605 | | | Al | USD 1315 | | | Cu | USD 3145 | | | View Current Metal Rates | | Steel Futures | | NCDEX | 23900 (19-Dec) | INR | 0 |  | | DGCX | 480 (30-Jan) | USD | 0 | | | LME-M | 320 (30-Jan) | USD | -5 |  | | LME-F | 280 (30-Jan) | USD | -15 | | | 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
Scrap and pencil ingot prices at Mumbai recover - 03 Feb 2009 It is reported that the prices of steel making input scrap and input for rolling of long products pencil ingot firmed up at Mumbai, thus signaling likely recovery in long product prices.
Some of the positive signals seen on February 2nd 2009
1. HMS prices in Mumbai market surged by INR 1000 per tonne
2. Sponge iron prices in Raipur saw positive movement
3. Pencil ingot prices saw positive price movement at Mumbai, Raipur and Ahmedabad
Melting scrap
80:20
HMS
| Location | Change | %
| | Kolkata | 0 | 0.0%
| | Mandi | -575 | -3.0%
| | Mumbai | 1000 | 6.3%
| | | |
Change is on February 2nd’as compared to January 30th 2009
Change is in INR per tonne
Sponge iron
| Location | Change | %
| | Kolkata | 0 | 0.0%
| | Raipur | 200 | 1.5%
| | | |
Change is on February 2nd’as compared to January 30th 2009
Change is in INR per tonne
Pencil ingot
| Location | Change | %
| | Mumbai | 700 | 3.3%
| | Mandi | 0 | 0.0%
| | Raipur | 87 | 0.4%
| | Kanpur | 0 | 0.0%
| | Kolkata | 0 | 0.0%
| | Ghaziabad | 0 | 0.0%
| | Muzzafarnagar | 0 | 0.0%
| | Ahmedabad | 200 | 0.9%
| | | |
Change is on February 2nd’as compared to January 30th 2009
Change is in INR per tonne
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 Q3 net sales up by 89% - 03 Feb 2009 India’s largest single site standalone manufacturer-exporter of value added steel products Uttam Galva Steels has recorded an impressive performance for the quarter ended December 31st 2008.
As per report Uttam Galva’s sales for the quarter rose to INR 11.02 billion up by 89% as compared to INR 5.82 billion while sales volume increased by 50% as compared to the corresponding quarter of the previous year. Production for December, 2008 quarter rose by 38% to 0.159 million tonnes from 0.115 million tonnes for the same quarter last year. Its operating profit for December, 2008 quarter rose to INR 769.9 million as against INR 717.5 million for the same period last year.
Mr Ankit Miglani director commercial of UGSL said that “The steep downslide in global steel prices has resulted in losses due to high priced inventories which have affected margins. We have liquidated most of such inventory stock in this quarter and the same is reflected in our results. The next quarter should see normalization of margins.”
He added that in the domestic market, the company is a major supplier to the automobile, white goods, general engineering and construction industries.
HR and plate prices decline in West and North India - 03 Feb 2009 The prices of wider width plates fell by 7 % in Mumbai due to recent reduction in prices by steel majors, compounded by unbridled supply of JSW material. In reaction, other suppliers are also cutting prices ensuing a price war.
Mumbai
| Category | Grade | Size | Change | %
| | Narrow Plates | GRA | 8x1.25 | -453 | -1.6%
| | Wide Plates | GRB | 12-20x2.5 | -2266 | -6.8%
| | Hot Rolled | Tube | 2.5x1250 | -453 | -1.6%
| | Cold Rolled | DSK | 0.63x1000 | 0 | 0.0%
| | Galvanized | 100Gms | 0.4 | 0 | 0.0%
| | | | | |
Change is on February 2nd’as compared to January 30th 2009
Change is in INR per tonne
Ludhiana
| Category | Grade | Size | Change | %
| | Patra | | | -91 | -0.3%
| | HRC | Tube | 2.5x1250 | -181 | -0.7%
| | | | | |
Change is on February 2nd’as compared to January 30th 2009
Change is in INR per tonne
Kolkata
| Category | Grade | Size | Change | %
| | Narrow Plates | GRA | 8x1.25 | 0 | 0.0%
| | Wide Plates | GRB | 12-20x2.5 | 0 | 0.0%
| | Hot Rolled | Tube | 2.5x1250 | 0 | 0.0%
| | Cold Rolled | DSK | 0.63x1000 | 0 | 0.0%
| | Galvanized | 100Gms | 0.4 | -872 | -2.4%
| | | | | |
Change is on February 2nd’as compared to January 30th 2009
Change is in INR per tonne
Ahmedabad
| Category | Grade | Size | Change | %
| | Narrow Plates | GRA | 8x1.25 | -272 | -0.9%
| | Wide Plates | GRB | 12-20x2.5 | -453 | -1.4%
| | Hot Rolled | Tube | 2.5x1250 | -181 | -0.6%
| | Cold Rolled | DSK | 0.63x1000 | 0 | 0.0%
| | | | | |
Change is on February 2nd’as compared to January 30th 2009
Change is in INR per tonne
Delhi
| Category | Grade | Size | Change | %
| | Narrow Plates | GRA | 8x1.25 | 0 | 0.0%
| | Wide Plates | GRB | 12-20x2.5 | 0 | 0.0%
| | Hot Rolled | Tube | 2.5x1250 | -997 | -3.4%
| | Cold Rolled | DSK | 0.63x1000 | 0 | 0.0%
| | Galvanized | 100Gms | 0.4 | 906 | 2.6%
| | | | | |
Change is on February 2nd’as compared to January 30th 2009
Change is in INR per tonne
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)
Update on MMTC iron ore export monopoly proposal - 03 Feb 2009 PTI reported that the Indian steel ministry has rejected a proposal of state run trading agency MMTC for channelizing the country’s entire iron ore exports through it.
The steel ministry said that canalizing iron ore exports is not possible as the government has favored doing away with such a system as per the recommendations of the Hoda Committee.
The steel ministry in a letter to commerce ministry said that "Ministry of Steel opposes the proposal made by MMTC. In fact, Department of Commerce should implement the decision of the Cabinet approving Hoda Committee’s recommendations pertaining to discontinuation of the system of licensing and canalization currently in operation for the export of iron ore."
The steel ministry said that it would not be prudent to nominate a single company as the sole trading agency for any item, as it may act as a non tariff barrier to the trade in the era of economic liberalization.
In its proposal, MMTC had suggested a review of iron ore export policy and channelising of the mineral, irrespective of the grades, for overseas shipments through it. The rationale given by the trading agency in favour of its suggestion was better negotiating leverage for iron ore exports, resulting in improved sales realization for mining industry and higher trust in MMTC by importers.
(Sourced from Press Trust of India)
HZL sees revival of zinc demand - 03 Feb 2009 Leading Indian zinc producer Hindustan Zinc Ltd expects stable demand for zinc and lead in 2009/10 followed by a pick up as infrastructure construction recovers.
Mr Akhilesh Joshi COO of Hindustan Zinc said that demand for base metals slumped worldwide in 2008 with a global banking crisis and slipping industrial activity, particularly in the largest consumer China.
He said that consumption of zinc, mainly used in the making of steel, has been hit by slowing construction activity and weak sales of autos and consumer goods.
Mr Joshi said that the firm was operating at its full capacity of 754,000 tonnes per annum and was on track to expand capacity to 1.06 million tonnes by March 2010.
He told Reuters that "2010 will be the year when we can see the growth in consumption, both domestic as well as global. Because the economies world over are getting stabilized the global demand for zinc and lead is expected to start increasing by 2010.”
Mr Joshi said that "Towards the end of Q3, the downward trend in the unit cost of key inputs became visible and is expected to lower the cost of production going forward.”
(Sourced from Reuters)
Long product prices show mixed movement across India - 03 Feb 2009 The prices of long products exhibited a mixed trend on February 2nd 2009 at different location but mostly remained unchanged except for few exceptions.
The prices of rebars (TMT) saw a decline at Chennai whereas as joist prices declined at Delhi and Ahmedabad.
Chennai
| Item | Grade | Size | Change | %
| | TMT | Fe 415 | 12mm | -1300 | -4.0%
| | | | | |
Change is on February 2nd’as compared to January 30th 2009
Change is in INR per tonne
Delhi
| Item | Grade | Size | Change | %
| | JSTI | GR A | 250x125 | -1040 | -3.1%
| | | | | |
Change is on February 2nd’as compared to January 30th 2009
Change is in INR per tonne
Ahmedabad
| Item | Grade | Size | Change | %
| | JSTI | GR A | 250x125 | -1040 | -3.1%
| | | | | |
Change is on February 2nd’as compared to January 30th 2009
Change is in INR per tonne
On the other hand TMT prices firmed up at Mumbai and sections at Mandi.
Mumbai
| Item | Grade | Size | Change | %
| | TMT | Fe 415 | 12mm | 574 | 2.0%
| | | | | |
Change is on February 2nd’as compared to January 30th 2009
Change is in INR per tonne
Mandi
| Item | Grade | Size | Change | %
| | ANGL | GR A | 65x6 | 208 | 0.6%
| | CHNL | GR A | 75/100 | 208 | 0.6%
| | JSTI | GR A | 250x125 | 104 | 0.3%
| | | | | |
Change is on February 2nd’as compared to January 30th 2009
Change is in INR per tonne
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)
Slowdown signs - Indian core sector growth slips in December - 03 Feb 2009 It is reported that India’s core infrastructure sectors expanded by 2.3% in December 2008, lower than the 3.2% rise recorded in the same month a year ago, due to poor performance by steel and electricity sectors, which constitute nearly 60 per cent weight in the index.
In November, the index of six core industries grew at 1.8%. During April to December 2008 period, core sector production expanded 3.5% against 6% in the corresponding months the previous year
| | Weight in IIP | Dec ’07 | Dec ’08 | A-D '07 | A- D '08
| | Crude petroleum | 4.17 | -1.4 | -0.3 | 0.3 | -0.5
| | Refinery products | 2 | 1.9 | 3 | 7.5 | 3.7
| | Coal | 3.22 | 8.4 | 9.4 | 3.5 | 10.1
| | Electricity | 10.17 | 3.9 | 0.7 | 6.6 | 2.6
| | Cement | 1.99 | 4.4 | 11.6 | 7.7 | 7
| | Finished steel | 5.13 | 1.8 | -0.8 | 6.4 | 2.7
| | Overall | 26.7 | 3.2 | 2.3 | 5.9 | 3.5
| | | | | | |
The six core sectors crude oil, petroleum refinery products, coal, electricity, cement and finished steel account for just over a quarter of the Index of the Industrial Production which economists predict to grow marginally in December 2008.
The IIP had dipped 0.3% in October 2008, but grew 2.4% in the following month. IIP data for December are expected to be released in the first week of February.
Production of finished steel, which has a 5.13% weight in the IIP, dipped close to 1% as steel companies reduced factory output to adjust for slowing demand from infrastructure and auto sectors — the two key demand drivers in the backdrop of the global economic crisis.
Cement production remained robust in December last year and witnessed maximum expansion in the April-December period. In the quarter ending December, one sees a revival of cement production as monsoons withdraw.
Coal production also recorded strong growth as thermal plants needed the mineral to produce electricity.
Port workers reject 10 year pay hike proposal - 03 Feb 2009 It is reported that all the five major federations of port and dock workers in the country rejected the offer of 20% pay hike for 10 years offered by the Indian Ports Association, representing the 11 major port managements in the country.
A press release from the Water Workers Federation of India, Chennai, said that the meeting was chaired by Dr A K Chanda in the 14 the Bipartite Wage Negotiation Committee, held at New Delhi.
In a statement, Mr T. Narendra Rao general secretary of Federation said the federations representing 66,000 workers have been demanding the periodicity of the wage settlement be for five years as the other Central public sector undertakings, though the ports are autonomous bodies.
He added that the federations have decided to give a counter proposal against the offer. The strike notice issued on December 23 in favour of five year periodicity is before the Chief Labor Commissioner.
(Sourced from Hindu Business Line)
Sanmar Group wins SAIL Golden Jubilee BMQB Trophy - 03 Feb 2009 It is reported that a team from Sanmar Group of Chennai has won Steel Authority of India Ltd's Golden Jubilee Business & Management Quiz Bonanza Trophy.
Around 100 teams from top corporate houses and management schools across the country participated in the mega quiz event organized by SAIL as part of its ongoing celebrations to mark the golden jubilee of production by its plants, with the wider aim of encouraging business and management professionals and students to enrich their knowledge base.
The Marathon quiz contests were organized in Mumbai, Kolkata, Chennai and New Delhi during the past fortnight and the top two teams from each region battled it out in the national finals that saw grueling rounds of intense quizzing and a nerve-racking tie-breaker. All the regional winners got attractive cash prizes and trophies and participants of the audience rounds were rewarded not only for the right answers but also for their creativity.
Mr SK Roongta chairman of SAIL presented the trophy and a cash prize of INR 100,000 to the Sanmar team at the finals of the mega quiz event held at Habitat Centre in New Delhi last evening. The runners up team from Sun Microsystems won INR 50,000 and a trophy.
Mr Roongta congratulated the winners and thanked the participants for being part of SAIL's golden jubilee celebrations. He announced that SAIL BMQS will be an annual feature henceforth.
Tube Investments posts net loss in Q3 - 03 Feb 2009 Chennai based Tube Investments of India Limited, part of Murugappa Group, has reported a net loss of INR 13.75 crore during the third quarter ended December 31st 2008 as compared to profit of INR 17.55 crore for the same period last year.
During the quarter sales were at INR 434.07 crores as against INR 417.61 crores during the same period last year, an increase of 4%.
Mr L Ramkumar MD of TII said that operations were impacted due to the sudden and steep decline in demand for its key products. He added, while volumes of all businesses were affected by slowdown in demand the auto related businesses were significantly impacted by lower turnover and profitability."
He noted that sales of cold rolled steel strips during the quarter declined 43% while tubes declined by 36%. Export of tubes was higher by 6% during the quarter. Sales of value added tubular components increased by 23% during the quarter.
(Sourced from Business Standard)
Nissan Renault scouting for partner for Chennai project - 03 Feb 2009 Projects today reported that the Nissan-Renault partnership wants to introduce a third partner into its USD 1.1 billion Chennai factory project, which is scheduled to manufacture cars and SUVs by 2010.
Currently, it was a 3 way JV, but Mahindra & Mahindra pulled out early last year, citing the lack of synergy. Under pressure to cut back investments globally, Nissan-Renault had invited Ashok Leyland to move its light commercial vehicle JV project with Nissan to Chennai, to better use the plant's 400,000 unit a year capacity. But Ashok Leyland turned down the offer.
As per report, Nissan has a USD 500 million JV with Ashok Leyland for LCV which signed a MoU with the local government for a 380 acre new factory in Pillaipakkam, near Chennai, with 100,000 units a year capacity. It is this project that Nissan-Renault wanted Leyland to shift to its Chennai plant.
(Sourced from Projects today)
L& T announces Q3 result - 03 Feb 2009 Gross sales of Larsen & Toubro Limited for the quarter ended December 31st 2008 at INR 8700 crore, has grown by 35% over the corresponding quarter of the previous year.
Despite an environment of tight liquidity, cautious investment in the Oil & Gas and the Core sectors and a general slowdown in domestic infrastructure spending, the Company has been able to secure fresh orders totaling to INR 14620 crore during the quarter, exceeding the order inflow of INR 13019 crore achieved during the same quarter of the previous year when the economic climate was significantly better.
The Company is well on its way towards consolidating its overseas presence, as reflected in its share of Sales from international business at 18.5% for the quarter. Profit before Interest and Tax from normal operations for the quarter ended December 31st 2008 at INR 1009 crore, has risen by 37%, when compared with the corresponding quarter of the previous year. The Company has reported Profit after Tax at INR 604 crore from normal operations during the quarter, recording an increase of 25% YoY after absorbing a higher incidence of borrowing costs.
On a overall basis, Profit after Tax for the quarter ended December 31st 2008 at INR 1520 crore, which included an extraordinary gain of INR 916 crore (net of tax) from the sale of the Company’s Ready Mix Concrete business, grew by 216% YoY.
For the nine month period ended December 31st 2008, the Company’s Sales at INR 23468 crore grew by 41% and Profit after Tax from normal operations at INR 1567 crore went up by 30%, over the corresponding period of the previous year.
Engineering & Construction Segment
Bucking the current industry downturn, the segment has bagged healthy project orders during the quarter, reaffirming the Company’s leadership position in turnkey project execution, infrastructure and capital goods sectors. The segment Order Inflow, at INR 13379 crore registered a growth of 17% over the corresponding quarter of the previous year. The segment revenues for the quarter at INR 7633 crore grew by 54% YoY. Cumulatively for the nine month period, the segment Order Inflow at INR 34126 crore rose by 36% and segment revenue at INR 19165 crore grew by 51% over the corresponding period of the previous year.
The Segment Order Book as at December 31st 2008 stood at a record high of INR 67029 crore, providing visibility to the growth trajectory of the segment’s performance in the medium term. The share of International orders in the Order Book as on December 31st 2008 was 15%.
For the nine month period, the segment has been able to sustain its margins at the same level as realized during the corresponding period of the previous year, despite pressures of input cost increases witnessed during most part of this period. This was possible due to suitable escalation clauses in a majority of its contracts with the customers, and on-time execution of the projects.
Electrical & Electronics Segment
The Segment posted revenue of INR 647 crore for the quarter, marginally exceeding its revenue for the corresponding quarter of the previous year. This was achieved despite a severe credit crunch and deferment of expenditure by the Building and Industrial sectors, which adversely impacted the demand for the segment’s products & services.
Export efforts were stepped up during the quarter to supplement the sluggish domestic demand, boosting the share of international sales to 18%. The segment profitability for the quarter was under strain due to lower volume, under-utilization of capacity and competitive pressures prohibiting higher price realization.
Machinery & Industrial Products Segment
The Segment reported a drop in revenue at INR 529 crore for the quarter ended December 31st 2008 severely impacted by a sharp drop in capital expenditure by the Indian Industry, especially the Construction sector. Low fund availability in the hands of the prospective customers worsened the situation. The segment also saw a drop in margins primarily due to squeeze on end-product prices and under-recovery of the fixed costs. The performance of the segment on the export front was encouraging with exports touching 23% of its total revenue for the quarter.
BEML announces Q3 results - 03 Feb 2009 BEML Ltd has announced the following unaudited results for the quarter ended December 31st 2008. BEML has posted a net profit of INR 587.40 million for the quarter ended December 31st 2008 as compared to INR 592.40 million for the quarter ended December 31st 2007. Its total Income has increased from INR 6407.60 million for the quarter ended December 31st 2007 to INR 6803.30 million for the quarter ended December 31st 2008.
Slowdown signs - Bajaj 2 wheeler sales dips in January - 03 Feb 2009 Zee News 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.
As per report, motorcycle sales during the month also declined by 34% to 109,666 units compared with 166,492 units in the corresponding month last year.
It said in statement that 3 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. It 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 zeenews.com)
McNally Bharat Engineering Q3 net profit up by 35.18% - 03 Feb 2009 Engineering firm McNally Bharat Engineering Co on Friday reported a 35.18 % rise in net profit at INR 5.61 crore for the third-quarter ended December 31st 2008 against a INR 4.15 crore net in the earlier corresponding period. The rise in Q3 profit follows a 91.20 % growth in the October-December quarter net sales revenue at INR 225.37 crore.
In a media statement issued after the board meeting held in Kolkata McNally Bharat Engineering's order book as on December 31st 2008, stood at INR 2,812 crore. Bids totaling INR 2,802 crore are at different stages of negotiation and the company hopes to secure a substantial portion of these bids in coming months of 2008-09 fiscal.
(Sourced from Economic Times)
Oil PSUs to spend 2% of profits on CSR - 03 Feb 2009 Public Sector Oil Companies have agreed to spend at least 2% of profits on corporate social responsibilities.
The resolve to have more focused approach on social responsibilities came at a meeting called by Mr Murli Deora minister of Petroleum & Natural Gas to review the contribution of Oil PSUs to activities pertaining to Corporate Social Responsibilities. The high power meeting was attended by Mr RS Pandey, Petroleum Secretary and CMDs of Oil Companies.
The Chairmen of Oil Companies made a comprehensive presentation on the CSR activities currently undertaken by them which include community development activities such as Education, Health and Medical Care, providing clean drinking water besides rising to the occasion in times of National Calamities.
While appreciating the work undertaken by Oil Companies, Mr Deora said that the CSR activities should be more focused and projects should be undertaken in a manner which can create real impact. The meeting was concluded with the passage of following resolution
1. Oil Companies will be spending at least 2% of the net profit of the previous year on CSR activities. However, the allocation will not be less than the allocation on CSR activities for previous year. On this basis it is expected that more than INR 600 crore will be made available by Oil PSUs for CSR activities every year.
2. If the budget allocated for CSR projects in any year, is not spent on identified projects, the unspent amount will be carried forward to the next year.
3. Each Company will form a dedicated team to look after the identification and execution of CSR projects.
4. At the end of every year, a compilation of CSR activities undertaken by Oil PSUs will be released by the Ministry of Petroleum & Natural Gas.
With the adoption of this resolution, it is expected that funds made available by Oil PSUs for CSR activities will take a quantum leap and many more projects would be undertaken which will benefit larger section of the society. The Oil PSUs will also fulfill their social commitment in a more comprehensive way.
JFE expects 2008-09 net profit to plunge by 50% - 03 Feb 2009 Nikkei reported that JFE Holdings Inc said last weekend that group net profit will likely drop 50% to JPY 130 billion (USD 1.4 billion) for the year ending March 31st 2009 thus revising an October forecast calling for a 7% increase to JPY 280 billion.
JFE sees sales rising 10% to JPY 3.91 trillion, undershooting its previous estimate by JPY 500 billion and its pretax profit will fall short of its prior forecast by JPY 130 billion landing at JPY 370 billion down by 26% YoY.
JFE is reducing output to match declining demand, but the cutbacks are going deeper than expected. As of October, core subsidiary JFE Steel Corp. expected crude steel cutbacks to reach about 500,000 tonnes in the second half. But the reduction will actually balloon to roughly 4 million tonnes as automakers and electronics manufacturers also scale back production.
(Sourced from Nikkei)
MEPS forecast further fall in stainless steel prices in EU - 03 Feb 2009 UK based MEPS said that “Alloy surcharges charged by most stainless steel mills in the EU will decline over the March/April period. This will be the result of lower ferrochrome contract prices. We estimate that the figures used by the majority of steelmakers for grade 304 cold rolled sheets will fall to near EUR 800 per tonne. This is a decrease of EUR 150 on the January average value.”
It is reported that ferrochrome contracts have been settled at approximately USD 0.8 per pound. This compares with the current number of just below USD 2. Decreases in ferrochrome costs affect all grades of stainless steel. This is unlike fluctuations in the nickel market which mainly influence austenitic grades.
MEPS said that “The prospects of lower alloy surcharges and the resultant falls in transaction values in the EU will do little to boost demand for stainless steel in the region in the short term. It is likely that, wherever possible, customers will hold back from purchasing for the next few months. This, despite a modest upturn in the LME nickel price over the past month.”
MEPS further added that “Stainless steel prices in the US are not expected to fall at the same rate as in the EU. A decrease in the spot ferrochrome price has already been factored into alloy surcharges in that country. However, a reduction of USD 100 per tonne in the alloy surcharge for type 304 sheets is a possibility over the coming months.”
MEPS said that “The impact of declining chromium costs has not been fully passed on to customers in many Asian countries. Modest decreases in transaction values are a distinct possibility in this region also.”
(Sourced from MEPS - Stainless Steel Review)
Chinese coke export prices continue to firm up - 03 Feb 2009 Latest CCCMC reference prices for coke exports as on January 20th 2009, based on the average reference prices for coke export transactions concluded in the previous week, stood at USD 400 per tonne to USD 450 per tonne on FOB basis.
Thus it is seen that after reducing to lowest levels of USD 3330 per tonne to USD 350 per tonne on FOB basis on December 16th 2008, coke prices have been increasing every week
| Issuance Date | Low | High
| | 2008.12.16 | 330 | 380
| | 2008.12.23 | 320 | 400
| | 2008.12.30 | 350 | 400
| | 2009.01.06 | 350 | 430
| | 2009.01.13 | 350 | 430
| | 2009.01.20 | 400 | 450
| | | |
In USD per tonne
On FOB china basis
The China Chamber of Commerce of Metals, Minerals and Chemicals Importers and Exporters is the largest trading association in China. The CCCMC reference prices are average prices for coke export transactions concluded the week prior to issuance date of such reference prices.
(Sourced from MySteel.net)
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BDI reaches 1100 mark - 03 Feb 2009 It is reported that on February 2nd 2009, Baltic Dry Index reached 1099 points up by 29 points as compared to January 30th 2009.
Capsize | | BCI | Change
| | INDEX | 2,004 | +23
| | SPOT 4 TCE AVG | 17,696 | +286
| | February 2nd | 17,410 |
| | Year Ago | 103,957 |
| | | |
All except INDEX in USD
Change is with respect to January 30th 2009 numbers
Panamax| | BPI | Change
| | INDEX | 842 | +47
| | SPOT 4 TCE AVG | 6,730 | +373
| | February 2nd | 6,357 |
| | Year Ago | 45,874 |
| | | |
All except INDEX in USD
Change is with respect to January 30th 2009 numbers
Supramax| | BSI | Change
| | INDEX | 533 | +21
| | SPOT 4 TCE AVG | 5,577 | +220
| | February 2nd | 5,357 |
| | Year Ago | 40,084 |
| | | |
All except INDEX in USD
Change is with respect to January 30th 2009 numbers
Tunstall Shard sculpture - A marvel of an idea in stainless steel - 03 Feb 2009 Location: Jasper Square, Scotia Road, Tunstall, UK
Installed: Arrived for installation 12th January 2009
Unveiled: 19th January 2009
Commissioned by: Dransfield Properties, Barnsley
Sculptor: Robert Erskine
Dimensions: 35ft high x 27ft wide
Weight: 7.5 tonnes
Material used: Stainless steel 316 series
Frozen in time, a finger print on an ancient Roman ceramic shard is evidence of the human link, before our time, of intent and skill. 'Tunstall Shard', by Sculptor Robert Erskine FRBS, acknowledges the generations of people in Tunstall, whose occupations and skill created Tunstall's fine reputation for outstanding quality, so characteristic of its industries.
The sculpture is based on a shard of pottery from Roman times, that was found in an underground oven when the Wedgwood site was being redeveloped. And it shows the fingerprint that can be seen on the original shard and which is thought might date back hundreds of years.
The Jasper Square retail park is on the site of the former Wedgwood Alexandra pottery works which was built in 1886. The works were closed in October 2003. Situated at Jasper Square retail park, Scotia Road, Tunstall and Commissioned by Dransfield Properties for Phase 4 of their retail development in Tunstall, the sculpture is 300 times larger than the shard it is based upon. Fabricated in Stainless Steel at the works of Midas Technologies, Peterborough, it stands 35 ft high by 27ft wide, and weighs 7.5 tonnes.
Tunstall Shard is created in wrought Stainless Steel, with a unique applied surface, which mimics the shading and tone of the original drawings and sketches for the sculpture. Additionally the surface will absorb as well as reflect the ambient light, especially on a clear sunny day. The front elevation faces Scotia Road which is due west, so at sunset dramatic lighting effects will result.
For first hand account given by the designer Mr Robert Erskine starting from the conception, designing, fabrication and erection of this marvel visit http://www.steelguru.com/article/details/2009/02/02/MzE%3D/Tunstall_Shard.html
This is a weekly featured article on www.steelguru.com.
Iron ore price negotiations - New round to start soon - 03 Feb 2009 Xinhua reported that China is likely to kick off its negotiation with the world's iron ore giants on iron ore prices after the Spring Festival, Chinese Lunar New Year.
Baoshan Iron & Steel Co Ltd China's largest steel company and China Iron and Steel Association on behalf of Chinese steel enterprises, are negotiating with the world's three iron ore giants, namely Rio Tinto, BHB Billiton and CVRD on the purchasing price of iron ore.
Informed sources disclose that China and the world's three iron ore giants diverged over the price level for 2009 and the pricing method.
CVRD only agreed to cut the price by 10% while China insists on a 40% price cut. Besides, China requires new contracts to take effect as of January 1st instead of April 1st in the past in a bid to cut the time of high prices by three months; while BHB Billiton Ltd strongly proposes pegging of the pricing method to index, to facilitate operation of prices.
The three iron ore giants are delaying time in hope of turnaround of economic situation and warm-up of steel market, which will boost up prices. However, Mr Liu Jiajun a senior analyst of steel industry reckoned that the price of iron ore would further drop for at least 3 to 5 years, as the sector has entered into a long-term buyer's market.
The long-term agreed price of iron ore grew by over five folds in 2008 as compared in 2001.
(Sourced from Xinhua)
TMK completes 100% acquisition of NS Group from Evraz - 03 Feb 2009 TMK, one of the world’s largest oil and gas pipe producers and the market leader of the Russian pipe industry, announced that it acquired 49% of NS Group Inc (USA) from Evraz Group SA in accordance with a call/put option concluded between TMK and Evraz in March 2008.
After acquiring 49% of NS Group Inc, TMK now controls 100% of this subsidiary.
HRC import market into Italy quiet after Xmas - 03 Feb 2009 As per market information, Russian steel mills had concluded HRC export deals with Italian buyers at EUR 350 per tonne on CIF basis whereas and Eregli achieved EUR 348 per tonne CIF before Christmas.
No higher conclusions are known and after this, no new conclusions are known.
More buying activity is expected in end February or early March when stocks with users are reduced.
However, main problem in the market is that there are still old stock cargos which are priced at above EUR 700 per tonne on CIF basis. Although there could be many such parcels, three large parcels of 30,000 tonnes, 20,000 tonnes and 10,000 tonnes by a Chinese trading house and two global trading majors are on the forefront. As per report, these stocks are devaluated and kept unsold for now but it is expected that they will be cleared after companies present the balance sheets of 2008 and book the losses in 2009.
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)
Analysis of Chinese domestic HR market post Chinese New Year - 03 Feb 2009 According to Mr. Li Zhongshuang, GM of Shanghai Ruikun Materials, HRC prices are going to see further increase in February or early March. But the increase is not expected to sustain for a long period as there is no evident improvement in demand from end users.
Most traders hold that the increase is likely to spread into March or even April taken into account the fact that Baosteel has raised its ex works price for March delivery and construction activities resume following Chinese Spring Festival.
The reasons for further increase are cited by Mr Li Zhongshuang as below
1. There would be no evident increase in supply in February. Traders have not built a lot of stock before the holiday as most are cautious following the price dive. Steel makers have also cut steel production to some extent. Crude steel output in last October was down 17% year on year, which compares with 20.1% for that in November and 32.8% for December. Though some producers have resumed production on price increase since last December, there would be no abrupt rise in supply within a short period.
2. Local market is bolstered by ex works price increase by steel makers. Some steel producers have lifted HRC price by CNY 300 per tonne to CNY 400 per tonne which is regarded as a sign that steel markers are optimistic on future market. Further, the purchase cost of traders is further raised and there is less room for downward adjustment.
3. Steel demand from end users tends to improve. The economy stimulus package and plans to revive automobile, ship building and machinery industry are expected to bring more steel consumption in the first half of 2009.
There are also several uncertainties which probably would affect the market.
1. Probably release of steel capacity in 2009 would lead to oversupply again. Current capacity for wide hot rolled steel coil has reached 216 million tonnes and there would another 36.67 million tonnes of new capacity in 2009. It is clear that the overcapacity would be a great threat to HRC market, thus prices tend to see another drop if demand could not match the supply.
2. Lower overseas steel prices lead to further inflow into China. As Chinese domestic steel prices are higher than those in many overseas countries, the continuous imports of HRC would add to pressure of soft price in the future.
To sum up, there would be small increase in February or early March, however it is going to resume downward trend again on releases of new added capacity, more steel imports and few increase in downstream demand. Thus it is noticeable to pay attention to those uncertainties.
(Sourced from MySteel.net)
Visit www.Mysteel.net for real time access to China steel news!
Ansteel to increase stake in Gindalbie to 36% - 03 Feb 2009 ABC.net.au reported that Chinese steelmaker Ansteel is set to increase its stake in junior iron ore miner Gindalbie Metals Ltd by more than 20%.
As per report, Gindalbie shareholders will be asked to approve the AUD 160 million deal, which will see Ansteel's stake in the Western Australian company rise from 12% to 36%.
The money would allow Gindalbie to push ahead with its Karara iron ore project in the state's mid west, and guarantee Ansteel access to a special type of ore.
Mr George Jones chairman of Gindalbie said that its a significant investment in the future of the state's resource industry. He said that "At the moment, Ansteel source this ore form Brazil, so it replaces ore from Brazil and is not displacing anyone else. It is new business for Australia and it is significant."
(Sourced from ABC.net.au)
Ukrainian export of iron ore to China in 2008 surges - 03 Feb 2009 According to the figures released by Chinese customs, Ukrainian iron ore imports into China during 2008 amounted to 7.052 million tonne sup by whooping 210% YoY
| Country | 2008 | 2007 | Change
| | Ukraine | 7.052 | 2.28 | 210%
| | Kazakhstan | 3.256 | 2.69 | 21%
| | Russian Federation | 3.215 | 5.40 | -40%
| | | | |
In million tonnes
Voestalpine lower full year profit guideline - 03 Feb 2009 Bloomberg reported that Austria’s biggest steelmaker Voestalpine AG expects a drop in earnings for the year ending March 31st 2009 because of a massive decline in demand in all areas, except in railroad infrastructure and energy.
Its EBITDA is expected to fall about 10% YoY.
(Sourced from Bloomberg)
Production pruning - Cliffs suspends West Virginia mine temporarily - 03 Feb 2009 Cliffs Natural Resources Inc has announced that its wholly owned subsidiary, Pinnacle Mining Company, LLC will temporarily halt production at its Pinnacle Mine Complex.
Cliffs said that plans call for the production shutdown, which will affect approximately 360 employees, to begin February 2nd 2009 and run through February 28th 2009. Cliffs indicated the 2009 production plan at the Pinnacle Complex called for the mines to produce approximately 85,000 tonnes in February 2009. Mine management met with local leadership of the United Mine Workers of America to notify them of the production curtailment.
The Pinnacle Complex, which is located near Pineville, WV, includes the Pinnacle and Green Ridge 1 and Green Ridge 2 mines and the Pinnacle Preparation Plant. The Pinnacle and Green Ridge 1 mines both will halt production during February 2009, while the prep plant will operate on a reduced schedule to serve customer requirements. The Green Ridge 2 mine was previously idled.
Pinnacle produces metallurgical coal for the steel industry. Metallurgical coal demand has been reduced as the steel industry has cut back production in the face of the global economic slowdown.
Mr Duke Vetor, senior VP, Cliffs North American Coal said that “The month long production curtailment at Pinnacle is necessary to balance our production and inventory with customer demand.”
New ASTM standards address galvanizing process for steel - 03 Feb 2009 Galvanized steel products are manufactured and used throughout the world. A new ASTM International standard, A1057/A1057M, Specification for Steel, Structural Tubing, Cold Formed, Welded, Carbon, Zinc-Coated (Galvanized) by the Hot-Dip Process, addresses the galvanizing process as it is used across a variety of industries, including construction, automotive and transportation.
The new standard is under the jurisdiction of Subcommittee A05.11 on Sheet Specifications, part of ASTM International Committee A05 on Metallic-Coated Iron and Steel Products.
ASTM A1057 classifies the coating weights and mechanical requirements inherent in the galvanizing process. Original equipment manufacturers will be able to reference the new standard in their specifications to more accurately describe their products.
Mr Giulio Scartozzi, metallurgical manager, Allied Tube and Conduit, and a member of Committee A05 said that “ “ASTM A1057 will be extremely helpful for existing customers and markets, but will also assist new customers in developing their internal specifications to ensure clarity and consistency of the products.”
He added that “The primary users of the standard will be new and existing customers of continuously galvanized steel products, including but not limited to structural and mechanical engineers, federal and state agencies and industry associations.”
Established in 1898, ASTM International is one of the largest international standards development and delivery systems in the world.
Annual Report on China's Steel Market in 2008 and the Outlook for 2009 - 03 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
Canada wants exemption from Buy American - 03 Feb 2009 AP reported that Canada hopes that US officials will exempt America's top trading partner from "Buy American" provisions in the economic stimulus bill before Mr Barack Obama arrives in Canada this month for his first foreign trip as president.
Mr Stockwell Day Canadian International Trade Minister said that Canadian officials are in daily contact with US officials.
He reiterated that he is hopeful Canada will be exempted from provisions that call on major public works projects to favor US iron, steel and manufactured goods over imports.
Mr Day said "We would like to find a solution before the president visits Canada. We don't know if it's possible but that's where we are heading. It is our aim to find a solution before that time.”
Headed that "We are warning them of the dangers of protectionist movements, and they say that they are concerned about this and are looking at what they can do to mitigate it.”
Canada and other US trading partners warn that favoring US companies would breach Washington's free trade commitments and could set off a retaliatory trade war.
(Sourced from AP)
19 listed steel companies foresee plunge in 2008 profit - 03 Feb 2009 It is reported that 20 out of the 32 listed steel companies in China have published profit forecasts for 2008, among which 19 companies reported estimated profits drops of over 50% and only 1 said its profit would increase.
Industry analysts said the weak performance mainly resulted from collapsing steel price, lagged cost decline for raw materials and assets impairment, shrinking downstream demand as well as natural disasters such as snowstorms and earthquake. Profits in the first half of 2008 once hit record highs yet began to plunge in the second half, leading to losses in annual profits reported by five listed companies.
Five companies including Panzhihua New Steel & Vanadium Company Limited and SGIS Songshan Co, Ltd many eye losses for the first time. Fushun Special Steel Co Ltd is the only one who expects a 50% growth due to product mix adjustment. Anyang Iron & Steel Inc, Chengde Xinxin Vanadium and Titanium Co Ltd, Laiwu Steel Corporation, Nanjing Iron & Steel Co Ltd and Xinjiang Bayi Iron & Steel Co Ltd all foreseen net profit drop of over 50%. Besides various profits decrease forecasts, Fushun Special Steel Co., Ltd announced its net profit in 2008 would increase more than 50% from a year ago.
Panzhihua New Steel & Vanadium Company Limited forecasted a loss of CNY 430 million in last year, compared with a net profit of CNY 950 million in 2007. The company explained that the snowstorm in the year beginning interrupted the shipments of raw materials and finished products, hence it had to overhaul 1# blast furnace ahead of schedule. Besides, profits fell significantly under the influences of Wenchuan earthquake and global financial crisis. It initiated inventory falling price reserves for steel products and raw materials in the year end.
For the same reasons, Pan Gang Group Sichuan Changcheng Special Steel Company Limited expected an annual loss of CNY 350 million.
Xining Special Steel Co Ltd. reported an estimated loss in 2008 while SGIS Songshan Co Ltd said it would incur a loss of CNY 1.35 billion. Guangzhou Iron and Steel Co Ltd. also forecasted a loss compared with net profit of CNY 37.7529 million in 2007. Some other companies, such as Angang Steel Company Limited and Shanxi Taigang Stainless Steel Co Ltd witnessed sliding profits.
Angang Steel Company Limited forecasted a net profit of approximately CNY 3.42 billion in 2008 down by 55%YoY. The company earned CNY 2.44 billion in Q1, CNY 3.54 billion in Q2, CNY 2.27 billion in Q3 yet lost CNY 4.83 billion in Q4. 2.
Taigang Stainless Steel Co Ltd expected a net profit of CNY 1.2 billion in 2008, falling 72% from the CNY 4.248 billion in a year earlier. Sluggish stainless steel market, weak exports impacted by overseas economic recession and exchange rate, high-price raw materials stored in previous period all resulted in a lower profit.
Liuzhou Iron and Steel Co Ltd forecasted a profit fall of some 98% whereas Nanchang Changli Iron & Steel Co Ltd expected a drop of over 90%. Sansteel Minguang Co Ltd and Gansu Jiu Steel Group Hongxing Iron and Steel Co Ltd. estimated the profits would plummet 70% to100% and more than 90% respectively.
Lingyuan Iron & Steel Co Ltd, which has shifted primary business to iron ore, said net profit in 2008 would amount to less than half of that in 2007.
(Source: China Securities Journal)
Iron ore price edging up in China amid firming up of demand - 03 Feb 2009 It is reported that recent price of iron ore edges up with demand contracting, but analysts viewed that demand may mount after holiday as little goods are stored in middle and small-sized steel mills in previous period.
On January 19th price of 66% acid wet basis iron ore concentrate stayed at CNY 640 per tonne to CNY 660 per tonne in Tangshan and ex-factory price of 64% alkali wet basis in Shahe at CNY 700 per tonne to CNY 720 per tonne. In Shanxi Province, ex-factory price 65% acid wet basis remained at CNY 590 per tonne to CNY 620 per tonne and 66% acid wet basis at Beipiao area at CNY 570 per tonne. 65%-66% acid wet basis at Benxi area averagely stood at CNY 550 per tonne to CNY 560 per tonne.
Transactions of fine ore in Tangshan shrank obviously at present as most local steel mills are axing price and have no plan to purchase when steel products price sharply falls. As a result, former brisk prediction is cracking which pushes miners to lower stock. However, steel mills are reluctant to purchase now which triggers an impasse again in the market and reverses it to buyers' side. But traders have full confidence to the future market. They eyed it is natural that steelmakers cut purchase price to control producing cost at present.
Iron ore market is expected to move quiet with limit deals done in the near term, but demand and price would probably increase after the holiday.
(Sourced from MySteel.net)
Visit www.Mysteel.net for real time access to China steel news!
Kremikovtzi workers plan protest rallies - 03 Feb 2009 Novinite reported that Kremikovtzi workers are going to begin mass protests on Tuesday.
The steel mill trade unions informed that the first rally is going to be staged at 8:15 AM on the "Alexander Nevski" square in downtown Sofia.
As per report, about 2,000 of the Mill's workers are expected to show up for the rally, which will include a march through Sofia's central "Rakovski" street to the building of the Bulgarian Economy and Energy Ministry and then to the Ministries' Council building.
The report added that the only thing that could deter the workers from the protests would be the news that the Cabinet has designated a strategic investor for the troubled steel mill
Mr Lyudmil Pavlov chairman of the Podkrepa Union at Kremikovtzi told news paper that “He had information that the only two contenders the Brazilian metallurgy giant CSN and the Ukrainian Smart Group were still interested in the Mill and the Unions expected to find out who would purchase Kremikovtzi later during the week.”
The report added that the Kremikovtzi workers have not received any salaries since October 0f 2008. In mid November, they staged mass protest rallies in downtown Sofia, triggering wide-spread traffic congestion and chaos.
(Sourced from Novinite)
Production pruning - Foundation Coal closes of 3 mines in WV - 03 Feb 2009 Foundation Coal Holdings has announced that it is idling 3 underground mines in southern West Virginia in the latest sign that the recession is catching up with the industry.
Foundation Coal said that work at the mines and an associated preparation plant is ceasing immediately, Linthicum Heights. The Laurel Creek complex produces about 1 million tonnes of coal annually, but its high cost structure combined with the slumping coal market and difficult mining conditions make the mines uneconomic to operate.
Mr James Roberts CEO of Foundation Coal said in a statement that "The decision to idle the Laurel Creek complex is a necessary step in order to optimize the financial performance of our affiliates in Central Appalachia.”
Foundation employs 201 people at the complex and they will be considered for jobs at other mines though it's not certain how many of the 201 workers will be laid off.
Schnitzer Steel Industries acquires Puerto Rico metals recycler - 03 Feb 2009 Schnitzer Steel Industries Inc announced that it has acquired Ponce Resources Inc of Salinas in Puerto Rico.
Ponce is engaged in the business of collecting, processing, and selling ferrous and nonferrous scrap metal and operates at four locations in the Commonwealth of Puerto Rico.
Terms of the transaction were not announced.
Mr Don Hamaker president of Schnitzer’s Metals Recycling Business, said that “We are pleased to enter the Puerto Rico recycling market with the premier operator in the Commonwealth. The government and people of Puerto Rico have demonstrated a commitment to metals recycling, and we look forward to working together to further expand these activities. Ponce Resources has a long history of strong supplier and customer relationships, and we are pleased to welcome Tjerk Spijkerman, who will continue as Regional Manager, to the Schnitzer team.”
Mr Tamara Lundgren president & CEO of Schnitzer added that “This acquisition demonstrates our continued confidence in the positive long-term fundamentals supporting our Metals Recycling Business and the general public’s desire for and support of environmentally sustainable business activities, and is consistent with our strategic objective of acquiring companies with an established presence in their local markets, access to water-based transportation and an experienced management team. We will continue to seek opportunities to expand our metals recycling footprint, both in existing markets and in new areas that meet these strategic objectives.”
Schnitzer Steel Industries Inc is one of the largest manufacturers and exporters of recycled ferrous metal products in the United States with 41 operating facilities located in 12 states throughout the country, including seven export facilities located on both the East and West Coasts and in Hawaii and Puerto Rico.
Drop in material prices reduces construction costs in UAE - 03 Feb 2009 Arabian Business reported construction costs have dropped in the UAE by an average of a third in 2009 compared to the last quarter of 2008.
The 30% fall, which amounts to between AED 50 and AED 100 per square foot, is strongly linked to the drop in steel price and underpinned by the fall in the value of the Euro. Prices of other materials have also fallen with aluminium, wood and glass and diesel seeing prices cut by between 15% and 45%.
The exact percentage of cost decline was hard to pinpoint because it varies in association with the type of building, size, material and location. In Dubai and Abu Dhabi, construction cost currently range from between AED 400 to AED 900, depending on the location of residential buildings.
Mr Faris Saeed, GM of Diamond Developers said that “It is fair to say that construction execution charges or fees have decreased 25% to 30% in comparison to the last quarter of 2008. The bigger projects will incur higher construction execution charges compared to the smaller projects.”
Mr Dawood Samy Khorshed, MD at Master Civil Constructions added that "Obviously, there has been a slowdown and demand has reduced. But the steep fall in steel prices has had a major role to play in the fall in construction cost.”
Mr Marwan Haloui, head of the technology division at DEC, also said that falling oil prices was the root cause of the cost cuts, as it was the main driver behind the reduction in steel, copper and cost of transportation prices. He went on to predict that construction costs would fall by another 10% to 15% this year. He noted that "The cost is expected to reduce even further and could come down by another 10% to 15%. Several factors including the steep demand of the prices of steel and cement have contributed to the situation.”
(Sourced from www.arabianbusiness.com)
Vale to limit nickel concentrate export from Voisey's Bay - 03 Feb 2009 Companhia Vale do Rio Doce announced that as part of an agreement-in principle between its wholly owned subsidiaries Vale Inco Limited and Vale Inco Newfoundland and Labrador Limited and the Government of Newfoundland and Labrador in Canada, concerning Voisey’s Bay Development Agreement, Vale will not export more than an average of 55,000 tonnes of nickel in concentrate per year from Newfoundland and Labrador for the next four years maintaining pre-existent conditions.
Downsizing deals - Lakeside Steel announces more layoffs - 03 Feb 2009 Canadian Press reported that Lakeside Steel Inc in Welland will temporarily lay off of up to 84 hourly employees and shut down the plant.
The plant closure will run from today until February 9th 2009.
The company had announced in mid January that it was laying off up to 61 workers in Welland after laying off 40 employees in December.
Lakeside Steel is a steel pipe and tubing manufacturer serving oil and gas, mining, automotive and other industries.
Poll results (Week 05) - Majority sees 40% cut in iron ore prices - 03 Feb 2009 Question – Would Chinese steel mills be able to achieve 40% price cut in iron ore
Results
| Answer | %
| | Yes | 53%
| | No | 41%
| | Can't say | 6%
| | |
Total no of polls – 784
Chinese SBQ plate market remains stable - 03 Feb 2009 It is reported that ship plate price keeps stable and ex works prices by such steelmakers as Nangang and Xinyu edge up, owing to the overall warming up of the domestic steel market.
Take the spot markets in major cities as an example, on January 19th spot price kept unchanged from last week in Shanghai and 8mm plate by Xinyu went at CNY 4300 per tonne while 14mm to 20mm one post at CNY 4100 per tonne; the offer in Guangzhou climbed up and 8mm plate by Shaoshan Steel stood at CNY 4650 per tonne same with last week, 14mm to 20mm resource was priced at CNY 4250 per tonne up CNY 100 per tonne WoW.
However, analysts figured out that, steel industry had witnessed monthly losses since last Q4 and the price did not rebound much despite the country's stimulus package. Take the market in Jiangsu as an benchmark, the present price for common-carbon sheet is at RMB 4550 per tonne down by CNY 1000 per tonne from last end September that for medium plate drops by CNY 1600 per tonne to the current CNY 4250 per tonne, that for high-strength ship plate has decreased by CNY 2000 per tonne on average or even by CNY 3000 per tonne.
Ship plate price is forecast not to go up in a short period according to the present weak demand. Some insiders even believe the market will be much gloomier. Nevertheless, steel demand by ship-building industry is relatively stable, citing most of the leading enterprises have got orders dated to 2010. Enterprises should also adjust product structure while cutting production, experts noted.
(Source: China Ship News)
Downsizing deals - Tenaris considering work sharing as an option - 03 Feb 2009 It is reported that United Steelworkers Local 9548, representing more than 450 production and service personnel inside Tenaris Algoma Tubes Inc, will cast ballots on a reduced work week in exchange for job protection into the foreseeable future. USW Local 2724, representing nearly 600 salaried supervisory and technical personnel inside Essar Steel Algoma Inc, was voting on a similar option, with the outcome to be announced soon.
The majority of unionized workers inside Tenaris expects to be laid off for two weeks and will vote on the work sharing option at the conclusion of two membership meetings. The offer under consideration by the seamless tube mill workers is similar to the basic package being pondered by Essar Steel’s salaried employees, an 8 hour reduction in the work week for USD 89 from Employment Insurance to compensate for the lost hours.
Mr Jack Ostroski area co ordinator at USW said that Tenaris, which is entering its second temporary shutdown in 6 weeks, recently approached the Local 9548 executive about the possibility of work sharing. He added that "An application has yet to be filed to Service Canada to enter the program. The company is waiting for the vote outcome to determine its next step."
Mr Chris Belsito communications spokesperson at Tenaris Algoma disputes the Christmas layoff duration, saying it was 8 days, including 3 paid stats, not 2 weeks, as the union contends, but did confirm the imminent layoffs and the work sharing proposal. He said that "We are going into the shutdown due to global market conditions and the impact of foreign imports."
It may be noted that USW Local 2251, the bargaining units of the 130 laid off steelworkers, voted three to one against letting their executive enter into work sharing talks with the company.
(Sourced from www.thesudburystar.com)
Poll (Week 06) - Vote on Buy American clause of US stimulus package - 03 Feb 2009 Question - Is "Buy American" clause justified
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2009 China Steel Export Summit - 03 Feb 2009 Register now - 10% Discount to Steelguru Members
SteelGuru as official media partner is proud to present China Steel Export Summit 2009 which is organized by CBI China on 25 to 26th February 2009 at Beijing, China.
China steel export has been impacted by series of disadvantages in 2008, including, strict export policies, the appreciation of Chinese RMB, and the world financial crisis. China steel export volume in 2008 decrease more than 12% comparing with 2007.
With the influences of the world financial crisis, the down-stream of steel industry suffered a lot, resulting in the weak demand for steel products. To solve the financial crisis, and also support the steel export, China cancelled the export tax of 13 kinds of steel. Meanwhile, the export policies adjust in auto, house appliances, machinery, and ship industries, will also increase the demand for steel. China government carries out series measures to increase the domestic demand for steel, which will help to balance the price gaps in domestic market and export market, and what other policies China government will take in the year 2009? Will these policies inspire the global demand for steel?
In the first half of 2008, the appreciation of RMB brings great pressure for China’s exporters and global traders. While in the second half, the world exchange rates get into confusion as the result of the financial crisis. China government takes several measures to ensure the stability of China financial system. Will the exchange rate of RMB changes? Will the government bring some new monetary policies to boost the market?
Although the steel industry can not turn to be flourishing again soon, the future is still bright to judge in a long-term. With the economy boosting plan carries out in more and more countries, the down-stream of steel industry will get rid of embarrassment, and the world steel demand will also increase then.
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Increase in import duty on stainless steel to hit Indian end users - 03 Feb 2009 PTI reported that India's stainless steel importers and end users have said that increase in import duty on the alloy may lead to closure of about 5,000 export oriented utensils and cutlery units employing about 300,000 people.
Process Plant & Machinery Association of India have urged the government to refrain from increasing import duty as it will have an adverse impact on the INR 1,800 crore industries.
Mr VP Ramchandran secretary of PPMAI said that "We have urged the government not to impose any further import duty on stainless steel under pressure from domestic producers as these companies do not manufacture high grade stainless steel required for fabrication jobs of hotels and catering equipment."
Echoing similar views, Mr Paresh K Mehta secretary of All India Stainless Steel Industries Association said that domestic producers do not offer certain grades of stainless steel sheets, which is insisted upon by foreign buyers in cookware and dish washer ranges.
He added that "Stainless steel attracts 5% import duty now. Domestic stainless steel manufacturers are lobbying with the government to increase that to 15% to 20% to protect their interests. It will have a major impact on our industry, if the government goes by their demand."
He said that the demand for stainless steel is around 1.4 million tonnes per annum. He added that "Out of that, we import around 0.4 million tonnes per annum mainly from China, Japan, Ukraine, Korea and Thailand. The rest is supplied by the domestic manufacturers of stainless steel."
The importers concern comes amid speculation that union steel ministry is contemplating recommending up to 15% import duty on iron and steel items, including stainless, to protect the domestic industry against cheap arrivals of the commodity from countries like China.
(Sourced from www.ptinews.com)
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