| Price Index - India | | | | 09-Feb | 06-Feb | Change | | ILPPI | 6508 | 6467 | +41 | | IFPPI | 6502 | 6488 | +14 | | INDSPI | 6505 | 6477 | +28 | | What is it? | | Poll Results | | Chinese steel mills would reduce export levels to regain quantities? | | Yes | 58% | | No | 26% | | Can't Say | 16% | | View Current Poll | | Currency | | AUD | 1.4840 | | BRL | 2.2393 | | CAD | 1.2222 | | CNY | 6.8278 | | EUR | 0.7707 | | GBP | 0.6737 | | INR | 48.5216 | | JPY | 91.5681 | | RUB | 35.8264 | | USD | 1.0000 | | ZAR | 9.6272 | | View Current Currency | | Metal Rates Cash Seller & Settlement | | Zn | USD 1172 | | | Ni | USD 11500 | | | Sn | USD 11275 | | | Al | USD 1419 | | | Cu | USD 3526 | | | View Current Metal Rates | | Steel Futures | | LME-F | 300 (06-Feb) | USD | 0 |  | | LME-M | 330 (06-Feb) | USD | 0 | | | DGCX | 488 (06-Feb) | USD | +8 |  | | NCDEX | 23900 (19-Dec) | INR | 0 | | | NCDEX :
NCDEX Mild Steel Ingot Future Closing Price DGCX :
Dubai Steel Rebar Futures Closing Prices LME-M :
LME Steel Billet Future Buyer Prices (Mediterranean) LME-F :
LME Steel Billet Future Buyer Prices
(Far East) | | | | Others
Indian steel price index reflects market firmness - 10 Feb 2009 The domestic Indian Steel prices improved a bit on February 9th 2009. The Indian Long Product Price Index (ILPPI) and Indian Flat Product Price Index (IFPPI) increased by 41 and 14 points respectively. The overall Indian Steel Price Index (INDSPI) improved by 28 points:
| Class | 06-Feb | 09-Feb | Change
| | ILPPI | 6467 | 6508 | 41
| | IFPPI | 6488 | 6502 | 14
| | INDSPI | 6477 | 6505 | 28
| | | | |
ILPPI - Long Product Price Index
IFPPI - Flat Product Price Index
INDSPI - Indian Steel Price Index
| Category | 06-Feb | 09-Feb | Change
| | PI - TMT | 6192 | 6264 | 72
| | PI - WRC | 6975 | 6999 | 25
| | PI - Angle | 6137 | 6152 | 15
| | PI - Channel | 6169 | 6192 | 22
| | PI - Joist | 5778 | 5780 | 2
| | | | |
| Category | 06-Feb | 09-Feb | Change
| | PI - Narrow Plates | 6178 | 6155 | -23
| | PI - Wide Plates | 6550 | 6532 | -18
| | PI - Hot Rolled | 6300 | 6334 | 34
| | PI - Cold Rolled | 7049 | 7060 | 11
| | PI - Galvanized | 6771 | 6757 | -14
| | | | |
To know more about these indices please visit
http://steelprices-india.com/spi_services/spi.html
To keep tab on steel prices in India on daily basis, subscribe to services of www.steelprices-india.com by registering or sending a mail to admin@steelprices-india.com. Please note that this is a paid service.
(Sourced from www.steelprices-india.com)
Mr BK Mishra CEO of Welspun quits - 10 Feb 2009 It is understood that Mr Braja Kishore Mishra CEO of Welspun Gujarat Stahl Rohren Limited has decided to quit the company. No information is available on his further plans.
During his tenure of 13-14 years, Welspun has achieved a market leader position in pipes and tube segment globally.
Efforts to confirm the news did not yield results.
Indian steel ministry recommends up to 15% import duty - 10 Feb 2009 PTI reported that the steel ministry has recommended increasing the import duty on certain steel items up to 15% to protect the domestic industry against dumping of cheap commodities from countries like China and Ukraine.
An official said that in a proposal to the ministry of finance, the steel ministry has sought an increase in import tariff on all long products, including TMT bars, to 10%, while that on flat items like hot-rolled and cold-rolled coils, to 15%.
The source said that as the peak customs duty in India is 10%, the proposal of duty enhancement up to 15% is likely to be put up before Parliament for its approval in the ensuing session from February 12th 2009.
Currently, the import duty on all categories of steel products is 5%.
(Sourced from Press Trust of India)
Production pruning - RINL cuts production by 30% - 10 Feb 2009 ET reported that state run steel maker Rashtriya Ispat Nigam Limited has cut its production by nearly 30% due to slackening demand.
The report cited Mr PK Bishnoi CMD of RINL as saying that "Our current level of production is restricted to 70% in view of the global financial crisis that has led to a dip in demand from automobile and manufacturing sectors.”
Mr Bishnoi said the company managed to clear about 33%of its stockpiles in January by way of aggressive selling and foregoing the premium that it used to charge on its products earlier.
During April to January period of the current fiscal, the company's saleable steel production stood at 2.35 million tonnes which it claims is 93 per cent above the planned target and 106% of the rated capacity. The company's turnover for the ten month period stood at INR 7,994 crore, up by 2% as compared to INR 7,827 crore of the corresponding period in the last financial year.
(Sourced from Economic Times)
Founders pledge 13.5% of TATA Steel equity - 10 Feb 2009 Reuters reported that TATA Steel Ltd’s founders have pledged 98.9 million shares or 13.53% of the total equity capital.
The report said that “TATA Sons Ltd, which held 29.27% of the steelmaker at December 2008, has pledged 96.4 million shares or 13.19% and TATA Investment Corp, which held 0.43% has pledged 2.5 million shares or 0.34% as security for its convertible bonds issue.”
As per report, founders hold 33.96% in the company.
(Sourced from Reuters)
Rebar (TMT) prices improve by 2% to 3% in India - 10 Feb 2009 Rebar prices showed improvement at Kolkata, Delhi and Indore by about 2% to 3% n February 9th 2009.
Prices of other long products also exhibited firmness across may location in India
Kolkata | Item | Grade | Size | Change | %
| | TMT | Fe 415 | 12mm | 662 | 2.1%
| | WRC | SWR14 | 5.5/6 | 96 | 0.3%
| | CHNL | GR A | 75/100 | 331 | 1.0%
| | JSTI | GR A | 250x125 | -110 | -0.3%
| | | | | |
Change is on February 9th as compared to February 6th 2009
Change is in INR per tonne
Mumbai| Item | Grade | Size | Change | %
| | TMT | Fe 415 | 12mm | 229 | 0.8%
| | ANGL | GR A | 65x6 | 344 | 1.1%
| | CHNL | GR A | 75/100 | 344 | 1.1%
| | JSTI | GR A | 250x125 | 344 | 1.1%
| | | | | |
Change is on February 9th as compared to February 6th 2009
Change is in INR per tonne
Chennai| Item | Grade | Size | Change | %
| | TMT | Fe 415 | 12mm | 0 | 0.0%
| | WRC | SWR14 | 5.5/6 | 100 | 0.4%
| | CHNL | GR A | 75/100 | 0 | 0.0%
| | JSTI | GR A | 250x125 | 0 | 0.0%
| | | | | |
Change is on February 9th as compared to February 6th 2009
Change is in INR per tonne
Delhi| Item | Grade | Size | Change | %
| | TMT | Fe 415 | 12mm | 890 | 2.9%
| | WRC | SWR14 | 5.5/6 | 363 | 1.2%
| | CHNL | GR A | 75/100 | 0 | 0.0%
| | JSTI | GR A | 250x125 | 0 | 0.0%
| | | | | |
Change is on February 9th as compared to February 6th 2009
Change is in INR per tonne
Indore| Item | Grade | Size | Change | %
| | TMT | Fe 415 | 12mm | 1000 | 3.2%
| | ANGL | GR A | 65x6 | 500 | 1.6%
| | CHNL | GR A | 75/100 | 500 | 1.6%
| | JSTI | GR A | 250x125 | 500 | 1.5%
| | | | | |
Change is on February 9th as compared to February 6th 2009
Change is in INR per tonne
Ahmedabad| Item | Grade | Size | Change | %
| | TMT | Fe 415 | 12mm | 0 | 0.0%
| | ANGL | GR A | 65x6 | 0 | 0.0%
| | CHNL | GR A | 75/100 | 0 | 0.0%
| | JSTI | GR A | 250x125 | -208 | -0.7%
| | | | | |
Change is on February 9th as compared to February 6th 2009
Change is in INR per tonne
Kanpur| Item | Grade | Size | Change | %
| | TMT | Fe 415 | 12mm | 400 | 1.3%
| | ANGL | GR A | 65x6 | 300 | 1.0%
| | JSTI | GR A | 250x125 | 400 | 1.3%
| | WRC | SWR14 | 5.5/6 | 0 | 0.0%
| | | | | |
Change is on February 9th as compared to February 6th 2009
Change is in INR per tonne
Mandi| Item | Grade | Size | Change | %
| | ANGL | GR A | 65x6 | 0 | 0.0%
| | CHNL | GR A | 75/100 | 0 | 0.0%
| | JSTI | GR A | 250x125 | -208 | -0.6%
| | | | | |
Change is on February 9th as compared to February 6th 2009
Change is in INR per tonne
To keep tab on steel prices in India on daily basis, subscribe to services of www.steelprices-india.com by registering or sending a mail to admin@steelprices-india.com. Please note that this is a paid service.
(Sourced from www.steelprices-india.com)
Scrap and pencil ingot prices improves in India - 10 Feb 2009 Scrap prices showed remarkable improvement by 6% in Mumbai on February 9th 2009
| Location | Change | %
| | Kolkata | 0 | 0.0%
| | Mandi | 174 | 0.9%
| | Mumbai | 1000 | 6.1%
| | | |
Change is on February 9th as compared to February 6th 2009
Change is in INR per tonne
Pencil Ingot prices improved across the country reaching a jump of 6% in Kolkata.
| Location | Change | %
| | Mumbai | 400 | 1.8%
| | Mandi | 272 | 1.2%
| | Raipur | 0 | 0.0%
| | Kanpur | 523 | 2.5%
| | Kolkata | 1268 | 6.1%
| | Ghaziabad | 700 | 3.1%
| | Muzzafarnagar | 436 | 1.9%
| | Ahmedabad | 300 | 1.4%
| | | |
Change is on February 9th as compared to February 6th 2009
Change is in INR per tonne
However, sponge Iron prices dipped by 1% in Kolkata.
| Location | Change | %
| | Kolkata | -181 | -1.3%
| | Raipur | 0 | 0.0%
| | | |
Change is on February 9th as compared to February 6th 2009
Change is in INR per tonne
To keep tab on steel prices in India on daily basis, subscribe to services of www.steelprices-india.com by registering or sending a mail to admin@steelprices-india.com. Please note that this is a paid service.
(Sourced from www.steelprices-india.com)
POSCO needs to be patient with India plant - Government - 10 Feb 2009 In a country where two thirds of the population relies on agriculture to make a living, a company's attempts to acquire land often face resistance from farmers set off by political parties. Their protests which have sometimes turned bloody have derailed or postponed several big ticket industrial projects, thus dulling the appetite for investment in the world's second-fastest growing economy, after China.
The country's biggest foreign investment project, pushed by Korean steelmaker POSCO has made little headway because of resistance from villagers in the state of Orissa. Some from nearby areas are opposing POSCO's plans to build steelworks in the area. In 2007, the protestors detained POSCO employees on three separate occasions. There have also been casualties in clashes between villagers that support the project and those opposed.
Nevertheless, a spokesperson for India's Foreign Ministry said that POSCO and other companies need to be patient about acquiring land there.
Mr Vishnu Prakash joint secretary and spokesperson of the Ministry of External affairs said that "Land is a sensitive issue anywhere in the world. Same is the case in India. There is this attachment to land which people have. You have to be patient in terms of working out an arrangement which is mutually satisfactory."
The official said that “It may take some time for local and foreign companies to persuade residents to give up their lands, but it is a necessary process in a democracy in India.”
He said that "In a democratic society, you have to build consensus. It can slow you down. It may take some time. At the end, generally you have a result which is positive and which you can sustain because you are not forcing anything."
Mr VS Chandrasekar executive editor of the Press Trust of India said that "A political party whips up emotions and then people really think, Oh, we are being cheated. Then it becomes an agitation then it becomes a problem. That was why Nano became a problem and TATA shifted. There are also states where lands have been acquired and products have started and things are going smooth."
(Sourced from www.koreaherald.co.kr)
HR Prices improves by abut 2% at some locations in India - 10 Feb 2009 The prices for flat products remain unchanged except for minor dip at Kolkata.
However prices of HR improved at Mumbai and Kolkata.
Mumbai | 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 | 453 | 1.6%
| | Cold Rolled | DSK | 0.63x1000 | 906 | 3.0%
| | Galvanized | 100Gms | 0.4 | 0 | 0.0%
| | | | | |
Change is on February 9th as compared to February 6th 2009
Change is in INR per tonne
Ludhiana| Category | Grade | Size | Change | %
| | Patra | | | -181 | -0.7%
| | HRC | Tube | 2.5x1250 | 0 | 0.0%
| | | | | |
Change is on February 9th as compared to February 6th 2009
Change is in INR per tonne
Kolkata| Category | Grade | Size | Change | %
| | Narrow Plates | GRA | 8x1.25 | -436 | -1.6%
| | Wide Plates | GRB | 12-20x2.5 | -349 | -1.3%
| | Hot Rolled | Tube | 2.5x1250 | 523 | 1.9%
| | Cold Rolled | DSK | 0.63x1000 | -436 | -1.4%
| | Galvanized | 100Gms | 0.4 | -174 | -0.5%
| | | | | |
Change is on February 9th as compared to February 6th 2009
Change is in INR per tonne
To keep tab on steel prices in India on daily basis, subscribe to services of www.steelprices-india.com by registering or sending a mail to admin@steelprices-india.com. Please note that this is a paid service.
(Sourced from www.steelprices-india.com)
Slowdown sign - January car sales in India down by 3.2% YoY - 10 Feb 2009 Zee News reported that domestic passenger car sales declined by 3.2% YoY in January 2009 to 110,212 units from 113,894 units in the same month 2008.
According to the figures released by the Society of Indian Automobile Manufacturers, motorcycle sales in the country during the month was down by 5.8% at 452,822 units, against 480,727 units in the year ago period. However, total two wheeler sales in January also declined by 3.9% at 581,742 units, compared with 605,670 units in the same month last year.
SIAM said that commercial vehicle sales during the month decreased by 50.96% to 23,157 units from 47,225 units during the year ago period. The decline in passenger car sales was despite the market leader Maruti Suzuki India posting a healthy sale of 59,060 units against 54,336 units in the same month last year, growth of 8.6%.
Hyundai Motor India Ltd reported 13.5% decline in sales to 21,015 against 24,296 units in January 2008, while TATA Motors sales were up marginally at 15,406 units compared with 15,261 units in 2008.
In the motorcycles segment, Hero Honda Motors reported 5.1% increase in sales to 295,241 units compared with 280,663 units in the year ago period.
Meanwhile, Bajaj Auto's bike sales crash by 50.8% to 66,207 units against 134,704 units in the same month 2008. TVS Motors' sales stood at 30,271 units compared with 27,697 units last year, up by 9.29%.
As per report, total scooter sales during the month grew by 9.1% to 96,017 units against 88,077 units in January 2008 with market leader Honda Motorcycle and Scooter India reporting 5.2% growth to 54,119 units against 51,436 units in the same month last year.
Hero Honda Motor posted 69% increase to 15,789 units against 9,342 units, while Bajaj Auto declined by 55.5% to 489 units against 1,100 units in January last year.
The report added that the 3 wheeler segment also went on a slide in January with dropping 12.2% at 26,439 units compared with 30,145 units in the same month last year.
In the commercial vehicles segment, medium and heavy CV segment declined 67% at 8,727 units against 26,577 units January 2009. Light commercial vehicles segment also reported a decline of 30.11% to 14,430 units against 20,648 units in January 2009.
(Sourced from zeenews.com)
Directory of Fasteners Units in India - 10 Feb 2009 Published in January 2009, 'Directory of Fasteners Units in India ' has been comprehensively researched and prepared, to bring you a fully up to date guide to Indian Fasteners industries.
Why spend hundreds of hours searching for new contacts? Invest in a copy TODAY!
Content:
This report covers name of 274 fasteners units of India in alphabetical as well as location wise order. Look at the information you'll get in the ' Directory of Fasteners Units in India’
• Company name -274 entries
• Address-274 entries
• Email-157 entries
• Phone number-262 entries
• Fax number -231 entries
• Mob -159 entries
Format:
PDF File
Total no of pages - 156
Delivery by Email on receipt of payment
Price:
USD 250 or equivalent in INR
Additional Charges would be levied for delivery of file on a CD or in printed form
How to order:
Ordering the report is simple. You can order your copy to reports@steelguru.com, which will send you an invoice of the report.
BHEL bags 4 turnkey contracts worth INR 7,000 crore - 10 Feb 2009 It is reported that Bharat Heavy Electricals has won 4 turnkey contracts worth INR 7, 000 crore for the supply and installation of main plant equipment for four thermal power projects.
These projects have a cumulative capacity of 3,250 MW and are located in Madhya Pradesh, Uttar Pradesh, Tamil Nadu and Maharashtra. Of the total, two contracts are from NTPC, one from NLC Tamil Nadu Power and the other is from Mahagenco.
1. NTPC has placed 2 contracts for steam generator and electrostatic precipitator packages for the 2x500 MW Vindhyachal Super Thermal Power project stage-IV in Madhya Pradesh and the 2x500 MW Rihand STPP Stage-III in Uttar Pradesh. The scope of work includes design, engineering, manufacture, supply and erection and commissioning of steam generators and ESPs along with associated auxiliaries.
2. NTPL has placed a contract for setting up of the 2x500 MW Tuticorin Thermal Power project in Tamil Nadu. BHEL's scope of work includes design, engineering, manufacture, supply, erection and commissioning of the main plant package comprising turbine generators, steam generators with ESPs & associated auxiliaries and electricals, besides state of the art controls & instrumentation and complete civil works. These units will add 24 million units every day to the grid on commissioning.
3. The fourth order is from Mahagenco for setting up of the Parli TPP stage-III (1x250 MW) in Maharashtra. The scope of work involves design, engineering, manufacture, supply, erection and commissioning of the main plant package.
Meanwhile, the key equipment for the above contracts will be manufactured at BHEL's Haridwar, Trichy, Ranipet, Hyderabad, Bangalore, Bhopal and Jhansi Plants. The company’s Power Sector Regions will undertake erection and commissioning of the equipment.
Mahindra Forgings Q3 consolidated down by INR 41 crore - 10 Feb 2009 It is reported that the un-audited consolidated results for the Mahindra Forgings Group for the 9 months ended December 31st 2008 is as given below. These results have not been subjected to a limited review by the statutory auditors of the company.
The total income for the Q3 ended December 31st 2008 of the Consolidated Mahindra Forgings Group at INR 452 crore reduced by 18.4% over INR 553 crore for Q3 last year. Earnings before depreciation, interest exceptional items and taxation for the current quarter is downy by INR 4 crore as compared to Profit of INR 53 crore in Q3 last year. The consolidated group Loss for the current quarter after considering exceptional items and taxation is INR 41 crore as against profit of INR 4 crore in Q3 last year.
Beside, the total income for the 9 months ended December 31st 2008 of the Consolidated Mahindra Forgings Group grew by 11.0% to INR 1881 crore from INR 1695 crore in the same period last year. Profit before depreciation, Interest, exceptional items and taxation for the 9 months of current year is INR 149 crore as compared to INR 159 crore in the same period last year. The consolidated group loss for the 9 months in current year after exceptional items, taxation is INR 11 crore as against profit of INR 14 crore earned in the same period last year.
Mr Jen re designated as MD of Balasore Alloys - 10 Feb 2009 Balasore Alloys Ltd has announced that Mr RK Jena joint MD of Balasore Alloys Ltd has been re designated as MD of the Company by the Board of Directors at their meeting held on January 30th 2009.
Directory of White & Yellow Goods Manufacturers in India - 10 Feb 2009 Published in January 2009, 'Directory of White & Yellow Goods Manufacturers in India' has been comprehensively researched and prepared, to bring you a fully up to date guide to Indian White & Yellow goods industries.
Why spend hundreds of hours searching for new contacts? Invest in a copy TODAY!
Content:
This report covers name of 56 White & Yellow manufacturers of India in alphabetical as well as location wise order. Look at the information you'll get in the ' Directory of White & Yellow Goods Manufacturers in India '
• Company name -56 entries
• Address-56 entries
• Email-50 entries
• Phone number-56 entries
• Fax number -65 entries
• Mob -18 entries
Format:
PDF File
Total no of pages - 37
Delivery by Email on receipt of payment
Price:
USD 250 or equivalent in INR
Additional Charges would be levied for delivery of file on a CD or in printed form
How to order:
Ordering the report is simple. You can order your copy to reports@steelguru.com, which will send you an invoice of the report.
Iron ore price negotiations - Analysts see recovery - 10 Feb 2009 The Age reported that iron ore is recovering from a 3 year low just as Vale, Rio Tinto and BHP Billiton start talks with Asian steelmakers to set prices for annual supply contracts.
Mr Ric Ronge from Pengana Capital in Melbourne said that "The tone of the iron ore market has definitely changed. The outcome might not be so dire."
Mr Michael Rawlinson, head of mining resources & energy at Liberum Capital said that the increase in the spot market may limit the decline in contract prices.
Mr Andrew Driscoll, head of resources research at CLSA Asia Pacific Markets said that Australian iron ore for immediate delivery is now just 15% less than the 2008 contract price.
Goldman Sachs analysts wrote in a note earlier that "There are more signs than before that the cycle trough may have been reached. The probability has increased that iron ore negotiations could produce a better outcome than the 30% drop we forecast."
Mr Charles Kernot, a mining analyst at Evolution Securities said that "While of course China is important for iron ore demand, it is only one part of the global steel market. When you have companies like Honda saying they are closing plants and cutting production, it is impossible to ignore."
Mining companies will probably agree to a 30% reduction from 2008, according to the median estimate of 12 analysts surveyed.
It said that prices have risen 33% since October 2008 to USD 84.50 per tonne for immediate delivery in China's spot market after stockpiles in the largest consumer of the metal dropped last month. Reserves fell 22% from the record reached in September 2008, while shipping costs more than doubled this year as orders picked up. Imports of iron ore into China rose 6.2% in December 2008, customs data show.
China's steelmakers, which cut production in the second half, are benefiting from the government's CNY 4 trillion stimulus plan to spark slowing economic growth. Shares of Vale, Rio and BHP, which ship 75% of the world's iron ore and depend on China for about 20% of their sales, have gained more than 50% since their lows in 2008.
(Sourced from www.theage.com)
Baosteel intends to regroup Ningbo Steel - 10 Feb 2009 China Business News reported that Baosteel Group is discussing about share transfer of Ningbo Steel with its shareholders including Nanjing Iron & Steel United Co Ltd, Jianlong Group etc.
According to a top official of Fosun, the discussion, mainly focusing on transfer price, is near to an end, but the controlling holder Hangzhou Iron and Steel Group Company seems not intentional to sell its shares.
Ningbo Steel has 4 million tonnes per year steel capacity with an investment of CNY 17 billion with Hangzhou Steel, Tangshan Jinalong, Nanjing Steel and Fujian Lianhua taking 43.85%, 30.53%, 20% and 5.62% each.
Participating into regrouping of Ningbo Steel is believed a good choice for Baosteel, as per Mr Li Xinchuang with metallurgical industry planning & research institute, for its adjacency to the second biggest port-Beilun port-and the main steel market, though it still has a series of problem in management.
Some well-informed source disclosed that the latest issued steel industry revitalization policy said to pick up adjusting the sector's layout, including Baosteel's consolidation of Ningbo Steel, Baotou Steel etc, Shandong Steel Group's reforming of Rizhao Steel, Angang's regrouping of Pangang as well as Greenfield in Fangcheng port and Zhanjiang.
For Baosteel, it's still a long way to go to reach the goal of 80 million tonnes per year capacity by 2012. Chairman Mr Xu Lejiang said on the yearly working conference that the group requires altering patterns of taking acquisition and merger, and more prudently select the way and measures.
(Source: China Business News)
Xstrata Nickel to restructure Sudbury operations - 10 Feb 2009 Xstrata Nickel announced plans to restructure its Sudbury operations in response to ongoing challenging market conditions. The restructuring follows the announcement in November 2008 of the accelerated closure of the end-of-life Craig and Thayer-Lindsley operations at Sudbury, both of which will cease operations with immediate effect.
As a result of the restructuring, the Fraser Mine Complex will be placed on care and maintenance and associated support and administrative functions will be reorganized. The Strathcona Mill, with annual capacity of 2.7 million tonnes of ore, will be reduced to two work shifts from four as a result of reduced feed. In addition, the Fraser Morgan development project will be deferred. This project will be evaluated on an ongoing basis and may be re-initiated when economic conditions allow.
The announcement does not impact the world-class Nickel Rim South project in the Sudbury basin. The project remains on schedule to ramp up to 60% of its ultimate 1.25 million tonne per annum production capacity in 2009, equivalent to approximately 7,400 tonnes of nickel.
Nickel Rim South will become a low-cost, cornerstone operation in Sudbury, generating annual production of approximately 18,000 tonnes of recoverable nickel by early 2010. Xstrata Nickel has invested CAD 627 million for the project’s first phase, which came in on time and on budget, and has approved the remaining project capital expenditure of CAD 300 million for the completion of mine development and infrastructure. Nickel Rim South is a long life operation that is expected to provide a high value ore feed while significantly reducing Sudbury’s unit costs.
Total production from the Sudbury Smelter is expected to remain at a similar level compared to 2008 production as shortfalls arising from the cessation of Sudbury Mines will be offset by concentrates from Nickel Rim South and Xstrata Nickel Australasia. Concentrates will also continue to be processed from Xstrata Nickel’s Montcalm and Raglan operations, together with third-party feed.
Mr Ian Pearce CEO of Xstrata Nickel said that “Our leadership team is taking proactive and decisive measures during challenging times. The continued decline of the economic environment and deteriorating commodity markets, coupled with high operating costs particularly at our older mines, are negatively impacting our Sudbury operations. The actions announced today aim to reposition our Sudbury complex into the bottom quartile of the cost curve, ensure our operations remain financially robust even during a potentially long period of depressed commodity prices and establish a strong foundation for further growth in the region.”
He added that “Our Sudbury complex is an important part of Xstrata Nickel and we remain fully committed to continuing to operate at Sudbury for many years to come. Nickel Rim South remains a top priority and development work on the project continues without interruption.”
As a result of the restructuring, 686 permanent employee positions will be made redundant, affecting both union and salaried employees in operational and non operational roles. A three-day stoppage of operations was initiated today to allow the restructuring to occur.
Mr Marc Boissonneault vice president of Xstrata Nickel Sudbury Operations said that “There are no decisions more difficult than those which directly impact our employees, particularly to this degree. We recognize that this restructuring of our operations will affect our employees, their families, our unions and other key stakeholders. With this, our first priority is to ensure that displaced employees are treated fairly and with respect. This will include a three day pause of the organization, professional outplacement services and expanded Employee Assistance Programs offering counseling and support over the coming months. We are making these tough decisions to sustain our business in the immediate and longer term. Ultimately these actions will result in more robust and viable operations at Sudbury that continue to create value and jobs for the local community over the medium and long term.”
Vietnam cuts VAT for steel products to 5% - 10 Feb 2009 It is reported that after the Vietnamese government reduced value added tax for steel products from 10% to 5%, its market price of steel dropped.
There is a decline of about VND 500,000 per tonne compared to the price in December 2008. At present, the steel market is stable with a high sales volume.
On February 2nd 2009, China's TISCO’s benchmark steel price declined from VND 11 million per tonne (excluding value-added tax, the same below) to VND 10.6 million per tonne and the price from the other rival is VND 11.2 million per tonne. The average retail price of steel increased by VND 1 million when value added tax is added.
Vietnam Steel Association forecasts the sales of steel in 2009 will be about 9 million tonnes an increase of 2% to 5%. Due to the oversupply of international steel market, there will not be any big price fluctuations.
(Sourced from YIEH.com)
US to restrict imports of steel products from Mexico - 10 Feb 2009 The Mexican Iron and Steel Producers Association has announced that the US will implement a trade protection policy, to prohibit their use of iron and steel materials imported from Mexico in infrastructure construction.
The introduction of this policy means that Mexico's exports of steel products to the United States will be slashed.
Mexican Iron and Steel Producers Association said that the introduction of this policy violates the North American Free Trade Agreement and World Trade Organization’s relevant provisions of free trade, and the Mexican Ministry of Economic Affairs has been requested to intervene in this matter.
(Sourced from YIEH.com)
Chinese iron ore stockpiles at major ports increase again - 10 Feb 2009 It is reported that till the close of last week of February 6th 2009 imported iron ore stockpiles at China 's major ports rose by 0.76 million tonnes to 59.1 million tonnes, out of which Indian spot ore stock also increases by 780,000 tonnes to 13.44 million tonnes
| Port | Stockpiles by origin | Total
| | Qinhuangdao | India (0.5) | 1.5
| | Qingdao | India (0.6), Brazil (3.5), Australia (3.5) | 8.2
| | Tianjin | India (1.5), Brazil (0.6), Australia (2) | 5.1
| | Jingtang | India (2.42) | 4.4
| | Caofeidian | India (0.9),Brazil (0.8) Australia (3.8) | 5.5
| | Rizhao | India (0.8), Australia (3), Brazil (2) | 7
| | Lanshan | India (1.1) | 1.35
| | Yantai | Australia (1), Brazil (0.8) | 2
| | Dalian | Brazil (0.55); Australia (1.25) | 1.83
| | Dandong | Indian pellet(0.4) | 0.4
| | Lianyungang | India (2.3), Australia (0.35), Brazil (0.3) | 3.25
| | Beilun Port | Australia (2.4) , Brazil (0.3) | 2.9
| | Nantong Port | Australia (1.55),Brazil (0.4) | 2.1
| | Zhenjiagang | India (0.8), Brazil (1), Australia (0.6) | 2.95
| | Zhanjiang | Brazil (1.6),Australia (0.8) | 2.5
| | Xiamen | India (0.7) | 0.8
| | Jiangyin | India (0.5) | 0.8
| | Longkou | India (0.27) | 0.27
| | Bayuquan | India (0.15), Brazil (0.2), Australia (1.35) | 1.9
| | Fangchenggang | Brazil (0.8),India (0.5) | 1.5
| | Mawan | - | 0.45
| | Shanghai Luojing | - | 0.8
| | Other ports | - | 1.6
| | Total Stockpiles | - | 59.1
| | *Indian ore | - | 13.44
| | | |
(In million tones)
(Sourced from.Mysteel.net)
Visit www.Mysteel.net for real time access to China steel news!
MMK ready to repay Mechel to end dispute - 10 Feb 2009 Moscow times reported that Magnitogorsk Iron and Steel Works announced that it is ready to pay its RUB 801 million (USD 22 million) debt to Mechel, signaling an end to a major dispute.
The report cited a senior MMK executive as saying that “The steelmaker would make good on the debt as early as this week if penalty fees were scrapped. If not, the full cash payment will be made by the end of the month.”
He said that "We are ready to pay the whole sum today.”
He said MMK would repay the 801 million ruble debt in full by the end of the week if Mechel dropped its claim for penalty fees estimated at 39 million rubles; otherwise, the company will pay off the debt in tranches by the end of the month. MMK paid 200 million rubles of the debt Thursday.
The MMK executive said he believed that Mechel would drop its lawsuit before the hearing.
MMK previously said it could not pay its debts because Gazprom had delayed payments to pipe makers, which in turn postponed payments to MMK and other steelmakers. Completing the vicious circle, Mechel then refused to supply coal to MMK.
Mechel It had sued MMK in Chelyabinsk's Arbitration Court last month after the steelmaker refused to pay for 2008 coal deliveries. Mechel once supplied 20% of MMK's needs.
The next court hearing is scheduled for February 19th 2009.
As per report, Mechel had earlier rejected MMK’s initial offer to settle the debt through a barter deal in which MMK would send steel to Uralvagonzavod, which supplies train cars to the Russian Railways, and Russian Railways would in turn provide transportation services to Mechel.
(Sourced from Moscow Times)
BDI surges by 11% on February 9th 2009 - 10 Feb 2009 It is reported that on February 9th 2009, Baltic Dry Index reached 1815 points up by 173 points as compared to February 6th 2009.
Capsize
| | BCI | Change
| | INDEX | 3,344 | 345
| | SPOT 4 TCE AVG | 34,101 | 4,100
| | February 9th | 30,001 |
| | Year Ago | 111,827 |
| | | |
All except INDEX in USD
Change is with respect to February6th 2009 numbers
Panamax
| | BPI | Change
| | INDEX | 1,373 | 122
| | SPOT 4 TCE AVG | 11,019 | 983
| | February 9th | 10,036 |
| | Year Ago | 50,080 |
| | | |
All except INDEX in USD
Change is with respect to February6th 2009 numbers
Supramax
| | BSI | Change
| | INDEX | 984 | 94
| | SPOT 4 TCE AVG | 9,913 | 985
| | February 9th | 8,928 |
| | Year Ago | 41,618 |
| | | |
All except INDEX in USD
Change is with respect to February6th 2009 numbers
Chinalco appoints new chairman - 10 Feb 2009 Interfax China reported that the state-run Aluminum Corporation of China, the country's largest aluminum and alumina producer has appointed Mr Xiong Weiping as its new chairman replacing Mr Xiao Yaqing.
A Chinalco employee told Interfax that "A formal announcement is yet to be made. As a state run company under the control of the State-owned Assets Supervision and Administration Commission of the State Council, change of Chinalco's senior management is normal every few years."
In regard to whether Xiao would also step down as chairman of Chinalco's listed subsidiary the Aluminum Corporation of China Co. Ltd, the official said it is likely to happen when a formal announcement is released, but refused to disclose further details.
The source said "Xiong is currently vice chairman and general manager of China Travel International Investment Hong Kong Ltd."
Previously, between 2004 and 2006, Mr Xiong acted as vice general manager of Chinalco and president of Chalco.
(Sourced from Interfax China)
Hyundai Steel request deferred payment in exchange rate - 10 Feb 2009 Bloomberg reported that Hyundai Steel, since late last year found that the request for deferred payment of scrap steel trading company in Japan.
Background believed that it suffers a sharp decline in cash flow in the won yen dollar currency financial crisis. Scrap the usual trading in the cash settlement in exceptional circumstances, some traders feared the risk of debt collection was halted trading.
Ms Hu Sunmi spokeswoman of Hyundai Steel said that same day payment grace period for payment from the financial means of the scrap usance acknowledged a change.
Hyundai Steel is won by a sharp decrease in output of steel, has asked to delay shipments of scrap iron to Japan and other trading companies, asked the deferred payment as a condition of purchase of scrap.
Hyundai Steel in particular, is the most important export was 200 million tons to be purchased. Therefore, from Korea to Japan increased by years the exports of scrap dropped 30.5% to 236 million tonnes. Instead, with exports to China rose by 18.5%, has become the largest exporting country.
Mr Murata Takashi analyst at Daiwa Institute of Research said that scrap supply and demand outlook. He added that "The sluggish demand for building materials and the Korean won fell, reducing demand for scrap in the domestic steel demand will slump in the meantime. The recent rise in expected demand for China, I turn to fall."
(Sourced from www.bloomberg.net)
Macroeconomic indicators - IMF predicts UAE to grow by 3% in 2009 - 10 Feb 2009 Gulf News cited the International Monetary Fund as saying that the UAE economy is expected to grow about 3% in 2009 and the Middle East, North Africa, Afghanistan and Pakistan economies are likely to grow 3.6%.
Mr Massod Ahmad, director of IMF for Middle East & Central Asia, said that the UAE economy is not in recession and the IMF is comfortable with the growth forecasts of about 3% made by the government.
Mr Raed Safadi, chief economist of the Dubai government said that "We expect national GDP growth this year to be between 2.5% and 3%. For Dubai we expect it to be slightly less than that."
He noted that Dubai's real GDP growth was more than 8% in 2008, and sectors such as real estate, construction and tourism have been challenged by the global economic gloom.
He further said that "Despite these challenges, our growth will remain in positive territory in 2009 and we are doing everything to protect employment and human capital which is central to the growth of Dubai."
Mr Safadi commenting on rumors that large numbers of expatriates are leaving the country and the government is still in a state of denial, said on the contrary, the government has been very proactive dealing with the impact of the global recession and continuing its commitment to projects that are viable under the current circumstances.
While affirming that the Dubai economy's fundamentals are sound, he said the leverage is within manageable limits.
(Sourced from Gulf News)
Construction of second West-East gas pipeline eastern segment - 10 Feb 2009 Xinhua reported that China started construction of the eastern segment of the country's second West-East natural gas pipeline at Shenzhen City in Guangdong Province.
The pipeline, the second after the first West-East natural gas transfer project, will cross 15 regions and carry 30 billion cubic meters of natural gas every year to Zhejiang, Shanghai, Guangdong and Hong Kong, among others.
Mr Li Keqiang Chinese vice Premier attended the kick-off ceremony announced the start of the construction. When visiting the construction site, Li said the pipeline under construction is the country's most expensive energy project in decades and the world's longest natural gas pipeline. It is of great importance to ensuring China's energy security, coordinating regional economic development, deepening the ties between Hong Kong and inland provinces and promoting economic growth.
The 8,704 kilometer pipeline will be made up of one trunk line and eight sub-lines. Construction of the west segment of the pipeline was started in February 2008 and is expected to be completed by the end of the year. The whole line will be operational by the end of 2011.
An official with the National Development and Reform Commission said as China battles the financial crisis and expands its domestic demands; the second West-East gas pipeline project is a landmark project that will boost people's confidence to overcome the crisis. The total investment of the second West-East gas pipeline was CNY 142.2 billion. The eastern segment stretches 2,472 kilometer with an investment of CNY 93 billion.
The government approved the east segment project during an executive meeting of the State Council or the Cabinet last November, in a hope to ease natural gas shortage, boost economic development and popularize utilization of clear energy.
Mr Zhou Dadi a researcher with the Energy Research Institute of National Development and Reform Commission said the construction of the gas pipe is essential for China to increase gas resources and ensure energy security. He said that it is hoped that construction will boost consumption and increase investment amid a world economic downturn.
It is estimated that investment will top CNY 300 billion in other relevant industries, including machinery production, electric technology, and construction material sectors. The completion of the second pipeline is expected to save 11.06million tonnes of coal every year.
The first West-East gas pipeline was finished in 2004. It has provided 42 billion cubic meters of gas to 3,000 factories and nearly 200 million people over the past five years
(Sourced from Xinhua)
Asian thermal coal prices stay around USD 78 per tonne - 10 Feb 2009 Reuters reported that prices of power station coal from Australia, a benchmark for Asia, hovered around USD 78 per tonne amid thin trade on the physical spot market.
Traders said that several coal tenders from North Asian utilities, either due to expire or to be awarded this week, would help give some price direction.
Thermal coal prices on the globalCOAL Newcastle weekly index fell USD 4.98 from a week ago to USD 78.17 a tonne in the week ended February 7th 2009 but they were up about 62 cents from the middle of last week.
A Sydney based trader said that "The market is quite slow, there's not much happening at the moment. People are going to look at tender results to gauge sentiment and for price direction.”
Korean Southern Power Company Limited is expected to award its tender for 500,000 tonnes of coal later this week, while a closed tender by Japanese utility TEPCO seeking two panamaxes for the period of April 2009 to March 2010 will close on February 10th 2009.
The recent fall in Asian coal prices is beginning to draw more utilities out into the market as they take the opportunity to secure additional tonnage ahead of annual term contract negotiations.
Traders said that despite recent sluggish demand, Australian coal prices continued to hover above USD 75 per tonne as supplies at Hunter Valley remained tight due to production issues at some mines. Rains have also slowed production in Indonesia's Kalimantan region, also offering some support to prices.
(Sourced from Reuters)
Accident injures 5 at Sidor - 10 Feb 2009 Bloomberg reported that an accident in Venezuela’s largest steel mill Siderurgica del Orinoco on February 7th 2009 injured 5 workers.
Four of the employees were in stable condition and another was in intensive care.
The accident happened in the cold rolling area.
(Sourced from Bloomberg)
India to import 100 million tonne of coal by 2012 - 10 Feb 2009 Bloomberg reported that Coal and Oil Group quoted India will import as much as 100 million metric tonne of thermal coal by 2012 as new power plants are built, the country’s largest importer of the fuel for energy generation.
Mr Kaamil Fareed senior trading manager at Coal and Oil at a McCloskey coal conference in Cape Town said that imports will jump because of all the power plants being launched.”
Mr Fareed said that India’s imports of thermal coal were more than 28 million tonne last year and are expected to rise to 32 million tonne in 2009 and 38 million tonne in 2010.
(Sourced from Bloomberg)
Recession reports - Wisconsin Steel Industries files Chapter 11 - 10 Feb 2009 Wisconsin Steel Industries Inc which has been in business for nearly 70 years has filed for Chapter 11 bankruptcy protection.
The company, which filed a voluntary bankruptcy petition on January 22 with the US Bankruptcy Court in Milwaukee, remains in operation and continues to provide metal heat treating and blasting services at its factory at 1225 S. 41st St in West Milwaukee.
According to court documents, Wisconsin Steel Industries has 22 employees and had sales of about USD 3.5 million in 2008.
According to the documents, Court documents list Heartland Wisconsin Corp., Milwaukee, as a secured lender. Wisconsin Steel owes Heartland USD 1.9 million, including principal and accrued interest on a promissory note and attorney fees.
(Sourced from Business Journal)
RBCT shipped 4.12 million tonnes of coal last month - 10 Feb 2009 Bloomberg reported that Richards Bay Coal Terminal exported 4.12 million tonnes of coal last month.
It said that the terminal on South Africa’s north eastern coast received 4.96 million tonnes of coal by rail during the month and had stocks of 2.99 million tonnes.
(Sourced from Bloomberg)
JSL to invest up to INR 100 crore to save on logistics - 10 Feb 2009 PTI reported that JSL Limited has set up a logistics arm and will be investing up to INR 100 crore in the firm in the next 2 years in order to curb cost on its cargo movement.
Mr Arvind Parakh director finance at JSL said that "We will invest INR 50 to INR 100 crore in JSL Logistics Limited in the next 2 years. Our board has already approved an initial investment of INR 25 crore in it."
JSL Limited spends up to INR 800 crore per annum on movement of inbound and outbound cargo, including raw materials and finished alloy products. Through its new logistics firm, it intends to save the 20% to 30% margins that hired transporters make on ferrying cargo.
Initially, JSL Logistics will cater to the phase I of the company’s 800,000 tonne stainless steel project, which is being set up in Orissa with an investment of about INR 6,000 crore. Among the suppliers of heavy commercial vehicles, JSL Logistics prefers TATA Motors, as the auto major is offering a better deal.
(Sourced from PTI)
82% of Ukrainian casing and compressor pipe import quota used - 10 Feb 2009 Interfax-Ukraine reported that Russian and other companies use up 82% of Ukrainian steel casing and compressor pipe import quota.
As per report, Russian and other companies jointly supplied 81.8% of Ukraine's import quota of 14,504 tonnes of steel seamless casing and compressor pipes during the first year of its introduction from October 1st 2008 to September 30th 2009, receiving licenses to supply 11,865 tonnes of pipes.
The Ukrainian Economy Ministry gave pipe import data as of February 1st 2009. The ministry said that Russian companies used 100% of their quota, receiving licenses to supply 10,310.96 tonnes of pipes with the quota being 10,311 tonnes.
Austrian companies received licenses to supply 681 tonnes of pipes or 32% of the quota, Romanian companies 63,350 tonnes or 35% of the quota and companies from other countries 475.3 tonnes or 70% of the quota.
As reported, in June 2008 the interagency commission for international trade decided to impose special three year quotas on the import of steel seamless casing and compressor pipes, irrespective of the country of origin. The total quota for the current year is 14,504 tonnes.
During the first year of quotas, from October 1st 2008 to September 30th 2009, the quota for pipe exports from Russia is 10,311 tonnes, from Austria 2,125 tonnes, Poland 955 tonnes, Slovakia 148 tonnes, India 63 tonnes, China 42 tonnes and other countries 679 tonnes.
From October 1st 2009 to September 30th 2010, the quota is to be increased by 5% to 15,230 tonnes with a proportional rise for the countries, and from October 1st 2010 to September 30th 2011 the quota will grow by 10% compared to the quotas in the first year of their introduction to 15,955 tonnes.
Ukrtruboprom reported earlier that the grounds for the start of a dumping investigation in September 2007 were a jump in imports of these types of pipes. In 2003-2006, their imports grew by more than 2.2 times, which led to a 42% fall in shipments of these products by domestic producers in 2007.
The share of imports of steel casing and compressor pipes to Ukraine in 2007 grew from 29% to 43%. Imports to Ukraine of Chinese pipes alone grew by almost 17 times.
(Sourced from Interfax-Ukraine)
China may have surpassed US in January auto sales - 10 Feb 2009 China Daily reported that China may have surpassed the United States to become the world's largest auto market based on monthly sales in January.
General Motors, the leading US automaker, estimates that China sold about 790,000 vehicles last month. While car sales in China have slowed lately, they haven't plummeted like in the US where January sales tumbled 37% from a year ago to 656,976 vehicles a 26 year low.
Mr Mike DiGiovanni General Motor’s executive director of global markets and industry analysis said in a conference call that "This is the first time in history that China has passed the United States in monthly sales."
DiGiovanni projects, that Chinese auto sale could hit 10.7 million vehicles in 2009, nearly a million units more than his estimate of 9.8 million unit sales in the US for the same period.
The official Chinese car sales figures are yet to be published, but analysts say the GM estimate is close to de facto sales.
Mr Yale Zhang, a Shanghai-based auto analyst said "Although it is too early to conclude based on the monthly figure that China has become the world's largest auto market, it is definitely the world's only major auto market with strong potential."
China outpaced Japan to become the world's No 2 vehicle market in 2006. Although auto sales have slowed in recent months, analysts say China has great growth potential in the long term given strong domestic demand and recent government policies.
The government passed a stimulus package for the auto sector last month, reducing the purchase tax on vehicles with engine capacity of less than 1.6 liters by half to 5%.
(Source: China Daily)
Zinc falls in London as jump in stockpiles - Report - 10 Feb 2009 Bloomberg reported that zinc fell on the London Metal Exchange, ending a three day winning streak, as inventories at almost a three year high revived speculation about falling demand for the metal used to galvanize steel in cars.
As per report LME index of industrial metals had climbed 7.1% this week close on speculation government spending on bridges and other infrastructure will spur demand. Zinc inventories in LME warehouses jumped 2,350 tons to 348,975 tons, the most since February 16th 2006. The US auto market had its worst month since 1981 in January as demand slid.
Mr Randy North a trader at RBC Capital Markets in London said that “The car industry has just shut off completely. Once infrastructure projects get under way, both in China and the US that will take a lot of zinc away very quickly.”
Korea Zinc Co forecast sales may drop as much as 38%in 2009. The metal has fallen 5.4% in 2009, joining aluminum and nickel as decliners on the LME.
(Sourced from Bloomberg.net)
China unveils Shanghai-Hangzhou high speed rail line plan - 10 Feb 2009 China Knowledge reported that China will begin the construction on the high-speed rail line between Shanghai and Hangzhou by late March.
According to the plan, the Shanghai-Hangzhou high-speed rail line will run at a speed of up to 350 kilometer per hour on the 159 kilometer line and the traveling hour will be shortened to 38 minutes as compared with more than one hour at present.
Mr Yu Jian'er chairman of the board and general manager of Zhejiang Provincial Railway Investment Group Co Ltd said in addition, China will invest a total of CNY 29.6 billion into the project, with the Ministry of Railways, Shanghai and Zhejiang provincial governments and Baoshan Iron and Steel Co Ltd as the investors. He said that the Shanghai-based Baosteel will invest CNY 2 billion, taking a stake of 8% in the project.
Mr Yu also said that the project is expected to obtain approval from the National Development and Reform Commission in mid-February, and it will take two years to complete the construction.
(Sourced from China Knowledge)
Production pruning - US coal production slips by 2.1% - 10 Feb 2009 The US Energy Information Administration has estimated that the US coal production slipped by 2.1% during the week ended January 31st 2009.
As estimated by EIA from data on railroad car loadings, coal production totaled approximately 21.4 million short tonnes during the week ended January 31st 2009. This production estimate is approximately 2.1% lower than last week’s estimate and 2.4% lower than the production estimate in the comparable week in 2008.
Production east of the Mississippi River totaled 9.2 million short tonnes, and production west of the Mississippi River totaled 12.2 million short tonnes. Coal production for January 2009 totaled 97 million short tonnes, 1.7% lower than in January 2008.
CISA to hold meet to bring order to the market - 10 Feb 2009 According to Mr Qi Xiangdong China Iron & Steel Association's deputy secretary general meeting will be held February 18th to approve a pact that will require all member enterprises to sign and abide by in a bid to standardize the steel sales conducts.
Mr Qi said the pact will ask the steel enterprises not to sell the products below the cost, but to increase direct supply proportion and try to stabilize the sales price.
(Source: www.infocastfn.com)
Sichuan mills resume full operation on steel price rises - 10 Feb 2009 It is reported that China's base metal industry has shown sign of strengthening after several months of cold market, with construction steel prices rising CNY 200 per tonne after the week-long holiday, which boosts market sentiment for future uptrend. And most steel mills in Sichuan like PZH Chengdu Iron & Steel Co and Dazhou Steel Group have resumed full operation.
Construction steel prices in local have tumbled to CNY 3,500 per tonne the lowest after the National Day holiday and below costs from the peak of CNY 6,500 per tonne last year. And local steel producers have suffered a lot from it since 90% of them are mainly construction steel producers.
To minimize losses, a host of local mills like PZH Chengdu, Desheng Steel and Weiyuan Steel have slashed production, with some of them even cutting output by over 50%. However, things seemingly have changed a little. Official from Dazhou Steel told reporters that "We have resumed operation at full rate. Price for second-grade construction steel has advanced to CNY 4,300 per tonne after the holiday from CNY 4,100 per tonne.”
Mr Chen, agent of PZH Chengdu also noted that the steel mill has trimmed production by 30% at the second half of last year, but it now runs at full capacity though the demand trend can only be detected until after February 9th
Mr Shen Lin Kunming Steel local official said steel prices are returning to reasonable level after wild ups and downs last year, and the infrastructure projects as well as reconstruction in local have produced demand for construction steel. Meanwhile, rising raw materials prices like iron ore and coal also lend upward momentum to steel prices. He said that "However, market demand has yet to shown sign of massive rebound, and it remains unclear whether steel market has really warmed up."
Mr Zhu Guo'an general manager of Chengdu Luanqiang Trading Co said "New arrivals in local market are few with no big order pickups recently, despite the implementing support packages released by the central government at late last year. Merchants are pinning their hope on the market after February 9th but they remain cautious in stocks piling-up to avoid risks".
Mr Li Jing, JPMorgan China president said some raw materials suppliers and market watchers are interpreting the recent steel output rise, price advances and iron ore stockpiles drops as the evidences for underlying demand. It's too early to make such a conclusion. He said that the temporary stocks rises as well as Beijing's support measures are the root cause behind the recent steel price advances "Steel prices have bottomed out widely, and Chinese top steelmaker Baosteel also raised up major products prices for February and March. However, it remains a myth for demand from major down-stream steel-consuming sectors like auto and household appliance."
Mr Li also said that bleak export prospect due to market protectionism, US's "Buy America" steel bill will also hinder domestic steel demand recovery. Meanwhile, China and the world three iron ore giants diverged over the price drop level for 2009 and the pricing method. He said that the recent steel price rebound has plunged Chinese negotiators into unfavorable conditions and might prolong the talks.
(Sourced from MySteel.net)
Visit www.Mysteel.net for real time access to China steel news!
INDSPI - SENSEX for steel prices in India - 10 Feb 2009 Amidst the currently prevailing volatile and speculative steel price scenario in India, SteelGuru.com has started the much needed barometer to track and measure the price movements on daily basis.
Steel prices being an issue at the forefront in the context of inflation, drawing significant government attention, making up for about 4 per cent in the Wholesale Price Index(WPI), has been media's most favorite and hot topic at the moment. Unfortunately, the facts are misrepresented very often due to complexity in the structure and the dynamics of the steel market, leaving the users of the information mostly in a state of confusion.
In order to provide an index for steel prices, we call it SENSEX for steel, SteelGuru.com decided to work on both long products and flat products for respective category indices as also a composite one for steel. We call them ILPPI, IFPPI and INDSPI and have started releasing these indices with effect from July 1st 2008, after taking June 30th 2008 as base.
ILPPI is based on daily market prices of three benchmark products rebars, wire rod and sections in 4 metros, whereas IFPPI is based on HRC, plates, CR and HDG. These indices have been built considering their respective weights in the composite categories as also in the shares of sales in the regional markets.
The pricing input is from www.steelprices-india.com, which publishes market transaction prices of benchmark products among select locations 5 days a week.
These price indices outline the way domestic steel market is moving day by day and will help producers, agents in the supply chain, steel buyers, bankers and analysts in their respective businesses.
To know more, please visit
http://steelprices-india.com/spi_services/spi.html
Shaoguan Steel and Hainan Mining establish strategic alliance - 10 Feb 2009 It is reported that Hainan Mining United Co Ltd and Guangdong Shaoguan Iron & Steel Group Co Ltd signed a long-term strategic cooperation agreement on January 5th in face of the financial crisis.
As per report, this agreement will be effective for 3 years from 2009 to 2011 and the total volume of iron ore being purchased and sold between them is set to be 1.5 million tonnes. So far, Shaoguan Steel is becoming one of the key customers of Hainan Mining United Co Ltd.
ThyssenKrupp sees Q1 net profit fell by 69% - 10 Feb 2009 ThyssenKrupp AG said that it may see its first quarter profit plummeted by 69% as demand for the metal slumped at the fastest rate since World War II. Net income dropped to EUR 135 million in the three months through December 2008 from EUR 435 million a year earlier. Sales fell by 6.5% to EUR 11.5 billion.
Mr Ekkehard Schulz CEO of ThyssenKrupp told shareholders at the January 23rd 2009 annual meeting that "In my career of over 40 years, I have never witnessed such an abrupt slump as we have had in the last few months. This is a new experience which makes the situation difficult to assess."
Mr Schulz declined to give a specific profit forecast for the current year, saying only that sales will fall significantly, with a corresponding effect on earnings.
It may be noted that German steelmakers are slashing production as carmakers and builders, their main clients, reduce orders because of tightened credit markets and consumer reluctance to spend in a recession. ThyssenKrupp is shelving investments to preserve cash and has joined industry leader ArcelorMittal in firing employees to cut costs.
German steelmakers cut raw steel slab output by 20% last quarter and by 30% in January 2009. ThyssenKrupp has slashed production by allotting fewer shifts to its steel unit's 20,000 employees and halting slab purchases from rivals. It also has fired temporary workers and will no longer use contractors at its German sites.
ThyssenKrupp is scheduled to publish the figures on February 13th 2009.
(Sourced from www.bloomberg.net)
New method LTCC to avert row over coal mining in Bangladesh - 10 Feb 2009 The Independent reported that Bangladesh could examine the option of Longwall Top Coal Caving an alternative mining method beyond the conventional board and pillar or standard longwall systems as it could enable miners to extract up to 75% to 80% of seams, it has been observed.
B K Hebblewhite & Y J Cai of UNSW Mining Research Centre, School of Mining Engineering of the University of New South Wales, Sydney claimed in a paper titled Evaluation of the application of the Longwall Top Coal Caving Method in Australia that through using this method the Australian coal mine industry could achieve maximum benefits.
The LTCC method offers a viable means of extracting up to 75% to 80% of seams in the 5 meter to 9 meters thickness range. Single pass longwall is considered to be limited to an upper height of 6 meters and is currently only operating at or below 5 meters.
Dr M Tamim special assistant to the former Chief Adviser said that "We could examine the method at Barapukuria as we failed to utilize its maximum output through the present conventional method." He said that however, the recovery rate of Barapukuria would be only 15% to 20%.
Following a world wide opposition to the open pit mining and obstacles from the Green Movement, the Australian mine experts focused on it following significant production improvements achieved in the Chinese coal mining industry over the last decade, as a result of development and application of the LTCC method.
The Australian coal industry is an export oriented one, where high productivity, sustainable financial viability and the highest safety standards are paramount. As such, the Australian requirement is for appropriate methods that meet the Australian safety and productivity/financial performance criteria, or preferably improve on them, at the same time achieving improved resource recovery.
The researchers focused on three areas:
(i) Continual updating of a thick seam minable reserves database, relative to potential mining methods
(ii) Investigation of the geomechanical factors that affect the safe and efficient performance of LTCC, relative to Australian mining conditions, and optimization of the LTCC configuration, performance and management with respect to caving and coal handling capacities.
A paper on the alternative mining device presents the key issues and the latest findings from each of these three areas of research. Under the geomechanical research, factors such as coal strength and rock mass characteristics are considered with respect to caving potential and face support performance. The caving and coal clearance simulation/optimizations research includes evaluation of a range of front and rear conveyor capacities relative to different caving strategies, as well as alternate panel conveying options.
The study said that the Chinese industry has reported averages of 15,000 tonnes per day to 20,000 tonnes per day from an LTCC face; up to 75% recovery of 8 meters thick seams using a 3 meters operating height longwall; and +5 MTPA face production. There are now well over 70 LTCC faces in China. A new semi-automated 300 meters long LTCC face was installed at the Xinglongzhuang Colliery of the Yankuang Group, in Shandong Province, in August, 2001 with production capacities of at least 7MTPA.
The study claims that the major perceived benefits of the LTCC method for Australia includes operating cost reductions: The LTCC method enables potentially double the longwall recoverable tonnes, per meters of gateroad development, thereby reducing the development cost per tonne significantly and reducing the potential for development rate shortfalls leading to longwall production disruption.
Regarding mine safety, it said lower face heights result in improved face control, smaller and less expensive equipment and improved spontaneous combustion control in thick seams, through removal of the majority of top coal.
Various study visits by UNSW, CSIRO, CMTE and industry representatives from Australia visited China to inspect the LTCC operations of Yankuang and other companies over the past five years. All groups have returned with very favorable impressions and views about prospects for the method in Aust
(Sourced from Theindependent.com)
Ajaokuta Steel to resume production after budget release - 10 Feb 2009 It is reported that Nigerian federal government may have back pedaled on its insistence that Ajaokuta Steel Company Limited remain idle while the audit of its assets was in progress. Investigation showed that the firm may resume production in the next few weeks, or as long as it takes for President Mr Umaru Yar'Adua to assent to the 2009 budget and for the money to be disbursed to the company.
Mr Phillip Umunnakwe chairman of Interim Management Committee said that the global recession would not have significant adverse effect on the outfit. The plant had been out of production since the concessionaire, Global Infrastructure Nigeria Limited, was booted out last year, and their salaries remained unpaid for over six months as at November.
However, the Iron and Steel Senior Staff Association of Nigeria and Steel and Engineering Workers Union had asked that the plant be reopened, assuring that they were capable of not only operating it successfully but also of making enough money to run the company and pay part of their salaries.
Mr Comrade Titus Orimijupa national president of ISSSAN had called on the supervising ministry to put into use the completed and commissioned units of the plant because these plants will continue to decay and deteriorate if not put into operation.
Mr Umunnakwe said that rather than allow the audit to be completed as initially planned before commencing work, the workers may start production while the audit is ongoing. He added that "There is a strong probability that while audit is going on, workers may be allowed to start production."
Noting that Nigeria imports 80% of its steel requirements currently, he said that the country would have to resort to import substitution by which 60% of the country's steel needs would be manufactured locally.
Investigation showed that the establishment may lose much of the USD 800 million per year as a consequence of the global meltdown. The amount is what was earmarked as income from the export of 1.3 million tonnes of steel annually. However, with the glut of steel in the world market, it may be difficult to make exports.
(Sourced from allafrica.com)
Pakistan cement industry seeks alternative overseas markets - 10 Feb 2009 Brecorder reported that Pakistan’s cement industry is seeking an alternate export market other than India, as it has not exempted the import duty on Pakistani cement, which is damaging the exports of the sector.
Industry sources said that Pakistan's cement industry has now decided to completely abandon the cement exports to India citing unfavorable business environment. Exports to India during January 2009 were recorded significantly lower at 10,000 tonnes, due to the import duty on cement, which has made the imported cement unattractive in Indian market.
Trade of the commodity between the two countries has also been significantly affected following the Mumbai attacks hampering the relations between the two countries. However, cement exports continue to depict healthy growth and were recorded at the level of 784,000 tonnes during the month, a decent growth of 26% on yearly basis. Cumulative exports for the first 7 months period from July to January 2009 also witnessed a significant upsurge of 62% to 5.87 million tonnes versus 3.62 million tonnes in the same period of 2008.
Mr Muhammad Rehan Khan, an analyst at First Capital said that on monthly basis cement exports registered a growth of 26%. The weight of sea based cement exports during January 2009 was recorded at 70% in overall cement exports as compared to 68% in the same month of last year.
However, the domestic cement demand is likely to record higher volumetric sales during January 2009 as compared to the preceding month. The double digit growth in monthly dispatches is due to the lower volumetric sales recorded during December 2008 on account of lesser working days during the month.
(Sourced from www.brecorder.com)
CIL shortlists 9 companies for developing underground mines - 10 Feb 2009 It is reported that CIL is likely to invite 9 short listed private companies from India and abroad for turnkey development and long term operation of high capacity underground mines in 7 virgin blocks, in a pre-bid meeting by end February. In all 17 companies had submitted EoIs in June 2008.
The short listed companies are
1. Walter South East Asia
2. Essel Mining
3. Anglo American
4. Reliance Infrastructure
5. Xeng Zhou Coal Mining Machineries Group
6. Essar Mineral Resources
7. Tiandi Science and Technology
8. Europe Ventures Ltd
9. Bucyrus DBT Europe GmbH
The blocks which are to be developed are Tilaboni under Eastern Coalfields, Kapuria of Bharat Coking Coal, Jagannath of Mahanadi Coalfields, Behraband and Khairaha under South Eastern Coalfields, and Murpar and Borda under Western Coalfields. Of the 7 blocks, Kapuria in Jharkhand is a prime coking coal reserve. Eastern Coalfields, Bharat Coking Coal, Mahanadi Coalfields, South Eastern Coalfields and Western Coalfields are wholly owned subsidiaries of CIL.
As per report, the projects with an estimated annual production capacity of 3 million tonne to 5 million tonne each will be funded by Coal India. CIL is likely to invest between INR 600 crore and INR 1,500 crore for development of each reserve.
K Line launches new coal carrier - 10 Feb 2009 Kawasaki Kisen Kaisha Limited, a Japanese shipping company, has launched a new 88,000 DWT coal carrier to join its specialized fleet for thermal coal transport.
Kawasaki Kisen Kaisha Limited, or K Line, said in a statement that the vessel, Tohoku Maru, was built at Marugame Shipyard of Imabari Shipbuilding Company Limited in Japan.
The Corona series, which it created and continues to develop, consists of epoch making coal carriers equipped with wide beam and shallow draft, which are the most suitable type to enter ports of domestic thermal power stations to discharge cargo.
Tohoku Maru will be principally involved in long term service carrying thermal coal to Tohoku Electric Power Co Inc thermal power stations.
In another statement, K Line also announced that it would launch a new service between South Africa and West Africa by April. The service will enable K Line to tap into the growing Asia to West Africa market by linking with its Asia to South Africa service and offer a high quality package to its customers.
The new service will be operated independently by K Line where its port rotations include Cape Town in South Africa, Tema in Ghana and Lagos in Nigeria and Cotonou in Benin.
Russia may assist on North South Railroad project - 10 Feb 2009 The Tehran Times that the Russian Railways Company will take part in the construction of the North South Railroad which will connect Russia to Iran via Turkmenistan.
Mr Vladimir Yakunin, director of Russia's Railway Company and Mr Gurbanguly Berdimuhamedov, President of Turkmenistan have recently held a meeting on the issue in which the Russian official express readiness to take part in the construction of the railway that links Turkmenistan to Iran.
Turkmenistan formally opened construction on the North-South Railroad from the border with Kazakhstan to Iran, a project seen as an economic boon for the oil and gas rich Caspian Sea region. The 700 kilometer line will improve Turkmenistan's connections with Russia via Kazakhstan and to the Persian Gulf coast via Iran.
Iran, Turkmenistan, and Kazakhstan signed a trilateral contract on construction of the railroad in 2007. The railway will have the capacity of transporting 15 million tons of goods per annum.
(Sourced from Tehran Times)
Xiyang Group to launch stainless steel project in Hainan - 10 Feb 2009 It is reported that Xiyang Group, after accredited by the ministry of industry & information technology, plans to start the construction of its stainless steel project in Changxi recycling economy demonstration area in the 2nd half 2009.
Mr Zeng Xuemeng director of Changxi industry and information technology bureau said that, with the total investment of CNY 7 billion, the project is expected to produce 1.42 million tonnes of quality carbon steel & low alloy HR strip and 0.5 million tonnes of stainless steel HR strip per year after put into production.
The project is to complete the first phase preparations during the 1st half of 2009. It will break earth since the 2nd half of 2009 and finish the constructions one and a half years later.
Liaoning based Xiyang Group is a large state owned group with gross assets of CNY 11 billion, mainly dealing with 5 pillar businesses, including refractory materials, fertilizer, steel, coal chemical and traders.
(Sourced from MySteel.net)
Visit www.Mysteel.net for real time access to China steel news!
Directory of Re-Rolling Industry in India - 10 Feb 2009 The Steel Re-rolling sector in the secondary producers category has undisputed position in the Indian market today due to its extensive restructuring within its resources and within the financial crunch which the sector is facing from the very start after Independence.
There are approximately 2600 Re-rolling Mills in India out of which approximately 1800 Re-rolling Mills are working inclusive of scrap re-rollers in India. This sector is self-sufficient in producing various common as well as most typical steel sections in their mills. The TOR steel, the flats, squares, special window sections, thinner size HR strips, thinner gaze HR strips, hexagons, wire rods, angles, channels, H-Beams, I-Beams, tele-channels etc are some of the products of this sector.
The estimated domestic demand of the re-rolled products has been estimated at about eight million tonnes. The industry has catered thousand and thousand tonnes of its products to core projects, dams, State Electricity Boards and other infrastructure projects in the country. The steel re-rolling industry caters to the needs of the domestic field up to the tune of 68% of the total requirement. 80 per cent of the total exports of rounds and bars has been recorded from the secondary steel producers.
Published in January 2009, 'Directory of Re-Rolling Industry in India ' has been comprehensively researched and prepared, to bring you a fully up to date guide to Indian Re-Rolling industries.
Why spend hundreds of hours searching for new contacts? Invest in a copy TODAY!
Content:
This report covers name of 825 steel re-rollers of India in alphabetical as well as location wise order. Look at the information you'll get in the ' Directory of Re-Rolling Industry in India '
• Company name -825 entries
• Address-825 entries
• Email-113 entries
• Phone number-813 entries
• Fax number -363 entries
• Mob -155 entries
Format:
PDF File
Total no of pages - 454
Delivery by Email on receipt of payment
Price:
USD 300 or equivalent in INR
Additional Charges would be levied for delivery of file on a CD or in printed form
How to order:
Ordering the report is simple. You can order your copy to reports@steelguru.com, which will send you an invoice of the report.
Slowdown signs - Nissan to slash 20,000 jobs
Zee News reported that Nissan sank into a net loss for the fiscal Q3 and will cut 20,000 jobs or 8.5% of its global work force, over the next year to cope with the global downturn.
Battered by the slump in the worldwide auto market, Nissan also lowered its forecast Monday for the fiscal year through March, saying it now expects a net loss.
For the October to December quarter, Nissan Motor Co reported a net loss of JPY 83.2 billion. The same quarter a year earlier, Japan's No 3 automaker had a JPY 132.2 billion profit.
(Sourced from zeenews.com)
|
