| 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 | 1.5645 | | BRL | 2.3161 | | CAD | 1.2422 | | CNY | 6.8311 | | EUR | 0.7760 | | GBP | 0.7006 | | INR | 48.9560 | | JPY | 89.4290 | | RUB | 36.0436 | | USD | 1.0000 | | ZAR | 10.1235 | | View Current Currency | | Metal Rates Cash Seller & Settlement | | Zn | USD 1126 | | | Ni | USD 11280 | | | Sn | USD 10850 | | | Al | USD 1335 | | | Cu | USD 3200 | | | View Current Metal Rates | | Steel Futures | | NCDEX | 23900 (19-Dec) | INR | 0 |  | | DGCX | 480 (02-Feb) | USD | 0 | | | LME-M | 330 (02-Feb) | USD | +10 |  | | LME-F | 275 (02-Feb) | USD | -5 |  | | 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
SAIL celebrates golden jubilee - 04 Feb 2009 According to Mr Ram Vilas Paswan minister for Steel Chemicals and Fertilizers, the Steel Authority of India to face up to the challenges that are confronting the steel sector in the context of the recent economic downturn while addressing the Golden Jubilee Celebrations of the steel major SAIL.
On this day in 1959, the first blast furnace of the Rourkela Steel Plant was heated by the first president Dr Rajendra Prasad.
He said that “Steel sector has been particularly hit by production cuts and price reductions worldwide. However, in India, the steel sector has not been affected severely like other countries. Now that the industry is facing difficulties, the government has taken a series of steps to reduce the impact of slowdown. Import duty has been hiked, excise duty has been reduced and HR coil has been moved to the restricted list.”
Mr Paswan said that paying glowing tributes to the vision of the first Prime Minister Pandit Jawahar Lal Nehru in setting up the steel plants, we must take that vision forward. He said that the unprecedented modernization and expansion plan of SAIL will take its capacity to 26 million tonne of hot metal and the total steel making capacity in India to 124 million tonne by 2012. He said that Pandit Nehru’s vision of mixed economy has helped us to reduce the impact of the global meltdown. Praising the quality of steel produced by SAIL, it is in no way less than that of any global player. He said that India is the 5th largest steel producer in the world will soon achieve the global norms of production.
Minister of State for Communication and IT, Mr Jyotiraditya Scindia who was present to unveil the postage stamp to mark the day, recalled the vision of former Prime Ministers Pandit Jawahar Lal Nehru and Rajiv Gandhi in making India self sufficient in basic industries and technology. He said that SAIL has led from the front in contributing to the creation of world class infrastructure in India. He added that the postage stamp released today will carry the story of the success of SAIL across the globe. He also praised SAIL for taking the initiative in spending 2% of its profit in such areas as health care, education and flood relief as a part of its corporate social responsibility.
Mr Jitin Prasada minister of State for Steel said that recalling the dreams of Pandit Nehru in building modern India, the 50 years of SAIL has certainly realized some of them. He said that the UPA government has stopped disinvestment in PSUs and some of the companies have been doing well and helped us at a time of global slowdown. He also urged other PSUs to follow the example of SAIL in CSR activities.
Mr PK Rastogi secretary of Steel said that “The challenges that lie ahead for the steel industry are daunting. They have to increase energy efficiency and cut costs. While we can look back with pride for what we have achieved, we have to rededicate ourselves to meet the future challenges. The low level of consumption provides enough scope for the Indian steel sector to grow on the back of untapped demand.”
Others who spoke on the occasion included, Dr G Sanjeeva Reddy President of Indian National Trade Union Congress and Dr MK Pandhe, President of CITU. Dr Pandhe said that the mechanism to resolve all issues concerning workers through the joint bipartite committee has worked well in SAIL. Dr Reddy said that the contribution of the workers to the 50 glorious years can not be forgotten. He also praised the industrial relation and emphasized that during the last several years there has been no strike.
A commemorative postal stamp was released on the occasion. Mr Paswan added that a commemoration medallion and presented it to the chairman of SAIL, Mr SK Roongta. Two former employees, one each from Rourkela and Bhillai Steel Plant associated with lighting of the first blast furnace were felicitated on the occasion.
Currently, delivering the welcome address, Mr SK Roongta chairman of SAIL said that the company has set new records of production and profit during the last 4 years. He said that SAIL is resolved to move ahead despite the current challenging environment and convert the challenges to opportunities. He added that SAIL employees have bagged maximum number of Shram Awards which reflects their dedication to the job.
India to be world No 2 in steel output by 2015 - Mr Paswan - 04 Feb 2009 PTI reported that even as the steel companies have reduced their production to cope up with the shrinking demand, Mr Ram Vilas Paswan Steel minister today exuded confidence that India will become the world's second-largest steel maker after China by 2015.
Mr Paswan said that "We are already the world's 5th largest steel producer and are poised to clinch the second slot by 2015 on the back of the capacity expansion lined up by the companies."
The Steel Ministry has already advanced the country's steel production target to 124 million by 2012 instead of 2020, envisaged in the National Steel Policy 2005.
He said that though admitting production cuts by steel companies in the recent months to tame the slump in demand, adding that the proposed Brownfield expansions are on track.
Currently, Indian companies, including SAIL, TATA Steel, JSW Steel, Essar, JSPL and Ispat Industries produce about 55 million tonne of steel per annum.
Reeling under slackening demand, most of the companies have either cut production or changed their product mix on the basis of the market demand.
(Sourced from Press Trust of India)
Indian steel prices index slide reflects continued weakness - 04 Feb 2009 The domestic Indian Steel price declined on February 3rd 2009.The Indian Long Product Price Index (ILPPI) fell by 9 points and Indian Flat Product Price Index (IFPPI) fell by 18 points. The overall Indian Steel Price Index (INDSPI) fell by mere 13 points
| Class | 02-Feb | 03-Feb | Change
| | ILPPI | 6494 | 6486 | -9
| | IFPPI | 6401 | 6382 | -18
| | INDSPI | 6450 | 6436 | -13
| | | | |
ILPPI – Long Product Price Index
IFPPI – Flat Product Price Index
INDSPI – Indian Steel Price Index
| Category | 02-Feb | 03-Feb | Change
| | PI - TMT | 6251 | 6242 | -9
| | PI - WRC | 6932 | 6921 | -10
| | PI - Angle | 6195 | 6186 | -9
| | PI - Channel | 6234 | 6229 | -5
| | PI - Joist | 5954 | 5951 | -3
| | | | |
| Category | 02-Feb | 03-Feb | Change
| | PI - Narrow Plates | 6088 | 6078 | -11
| | PI - Wide Plates | 6552 | 6540 | -13
| | PI - Hot Rolled | 6213 | 6186 | -27
| | PI - Cold Rolled | 6947 | 6947 | 0
| | PI - Galvanized | 6609 | 6593 | -16
| | | | |
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(Sourced from www.steelprices-india.com)
Sponge iron prices continue to improve at Raipur - 04 Feb 2009 It is reported that sponge iron prices continued to improve at Raipur on February 3rd 2009.
Sponge iron
| Location | Change | %
| | Raipur | 200 | 1.5%
| | | |
Change is on February 3rd as compared to February 2nd 2009
Change is in INR per tonne
On the other hand, prices of scrap and pencil ingot remained stable except at Mandi and Kanpur, where they slid down marginally
Melting scrap
80:20
HMS
| Location | Change | %
| | Mandi | -174 | -0.9%
| | | |
Change is on February 3rd as compared to February 2nd 2009
Change is in INR per tonne
Pencil ingot
| Location | Change | %
| | Mandi | -91 | -0.4%
| | Kanpur | -349 | -1.6%
| | | |
Change is on February 3rd as compared to February 2nd 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)
Mr Paswan inaugurates SAIL golden jubilee celebration - 04 Feb 2009 According to Mr Ram Vilas Paswan Steel minister, the Indian steel sector is now fifth in the world ranking and the entire credit for this should go to the public sector undertaking Steel Authority of India Limited.
Inaugurating the Golden Jubilee celebration of SAIL, Mr Paswan while congratulating the work force of the company also highlighted on the key role played by SAIL in the development of the country's infrastructure sector.
He said that perhaps this is the right time to go in for expansion and modernization as the cost has come down substantially.
Mr Paswan said that when he took over this Ministry about 5 years back the per capita consumption of steel within the country was just 30 kilogram which has gone up to 50 kilogram against 300 kilogram that of China and around 400 kilogram to 450 kilogram in the developed countries.
He said that SAIL has taken up massive expansion cum modernization plan where by the Indian steel sector is poised to occupy the second place after China by producing 124 million tonne by 2012.
JSPL moving ahead with steel plant at Angul - 04 Feb 2009 Statesman News Service reported that notwithstanding the current worldwide economic slow down, Jindal Steel and Power Limited has made much headway in setting integrated steel plant in Angul district.
The report cited a JSPL source as saying that “The current global slowdown has not affected JSPL at all, rather it proved to be beneficial in terms of price in procuring foreign equipment.”
Mr Rajesh Kumar Jha ED of JSPL Angul sector said that “In fact it has a leverage to reposition the INR 15,000 crore projects in right bracket when price of equipment and engineering are down due to slow down. The project was rather costlier by 20% to 25% 2 years back.”
As per report JSPL has applied to state government for a fresh MoU. Mr Jha said that "The company will later go for expansion for another 3.5 million tonne per annum ultimately."
Mr Jha said that “Sufferings initial delays due to intricacies of land acquisition, JSPL authorities are now is in a position to commission the 3 million tonne plant by the end of 2010. The second phase 3 million tonne per annum plant will go on steam in a year after."
He said that about 5,000 tonne of equipment from Italy, UK, Germany and China and other countries have already arrived at the plant site and another 10,000 tonne equipment are lying at various national and international ports.
(Sourced from Statesman News Service)
SAIL to invest INR 4,000 crore in mining projects in Orissa - 04 Feb 2009 BS reported that Steel Authority of India Limited has lined up an investment of INR 4,000 crore for implementation of its various mining projects in Orissa.
SAIL’s investment in these mining projects is a part of its INR 54,000 crore mega expansion plan according to which the company has targeted a steel output of 26 million tonne per annum by 2010-11.
The expansion plan aims to enhance the capacity of SAIL’s steel plants as well as mines. The raw materials division of SAIL has projected to produce 30 million tonne per annum of iron ore to meet the requirement of the steel plants in the eastern region.
As per report, the board of directors of SAIL had recently cleared an investment of INR 255 crore for scaling up capacity of Bolani iron ore mines in Orissa’s Keonjhar district from the existing 4.2 million tonne to 10 million tonne.
The capacity expansion project of Bolani iron mines includes enhancement of plant capacity, modification of dumping platform for high capacity dumper, tailing management, state of the art technology for GPS and CCTV based mines monitoring system and procurement of higher capacity heavy earth moving machinery.
The repot added that plans are also afoot to set up a 4 million tonne pelletization pant with improved iron ore beneficiation technology at Bolani for quality improvement and lower tailings. Earlier SAIL had begun work for enhancement of loading facilities at Bolani mines with an investment of INR 120 crore.
(Sourced from Business Standard)
MMTC to empanel pig iron importers - 04 Feb 2009 BL reported that MMTC has invited bids for empanelling pig iron importers. Bids should be submitted by February 12th, by 1700 hours.
MMTC said that the eligibility criteria would be that the companies should have an average gross turnover of USD 100 million and gross profit of USD 5 million in the last 3 years. It added that it also noted that the companies should either be the actual user of pig iron or trading companies dealing in steel products for at least 3 years.
(Sourced from BL)
Welspun Gujarat Q3 profit halves to INR 45.31 crore - 04 Feb 2009 Welspun-Gujarat Stahl Rohren Ltd has announced that the unaudited financial results for the quarter ended December 31st 2008. It has posted a profit after tax of INR 453.10 million for the quarter ended December 31st 2008 as compared to INR 973.90 million for the quarter ended December 31st 2007.
It total Income has increased from INR 10409.20 million for the quarter ended December 31st 2007 to INR 14616.60 million for the quarter ended December 31st 2008.
Long product prices weaken at Kanpur and Indore - 04 Feb 2009 It is reported that long product prices witnessed downward trend at Kanpur and Indore on February 3rd 2009.
Kanpur
| Item | Grade | Size | Change | %
| | TMT | Fe 415 | 12mm | -400 | -1.3%
| | ANGL | GR A | 65x6 | -500 | -1.6%
| | JSTI | GR A | 250x125 | -400 | -1.2%
| | WRC | SWR14 | 5.5/6 | -261 | -0.9%
| | | | | |
Change is on February 3rd as compared to February 2nd 2009
Change is in INR per tonne
Indore
| Item | Grade | Size | Change | %
| | TMT | Fe 415 | 12mm | -200 | -0.6%
| | ANGL | GR A | 65x6 | -200 | -0.7%
| | CHNL | GR A | 75/100 | -300 | -1.0%
| | JSTI | GR A | 250x125 | -350 | -1.1%
| | | | | |
Change is on February 3rd as compared to February 2nd 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)
SAIL offering 8 gram gold coin to each employees - 04 Feb 2009 PTI reported that SAIL has offering 8 gram gold each to it’s over 125,000 employees, costing the company about INR 140 crore.
Mr Ram Vilas Paswan Steel minister said commemorating the Golden Jubilee of Steel Authority of India Ltd that each employee will be gifted with an 8 gram gold coin to reward their hard labor.
Mr Paswan said that "I will like to tell that the announcement for the gift was made by me a year ago to reward the hard work of SAIL employees."
Going by the current market rate, an 8 gram gold coin would cost about INR 11,000. SAIL is said to be channelizing the order for the coins through SBI.
(Sourced from Press Trust of India)
Slowdown signs - Shipping firms reeling under pressure - 04 Feb 2009 Exim News Service reported that there seems to be no immediate relief for shipping companies affected by a sharp fall in demand for commodities, with charter rates taking a tumble.
Industry experts have predicted a further fall in both earnings and book values when new ships, which were ordered at the height of the shipping boom are delivered.
An industry official said that the situation has become so grave that shipping companies were unable to earn even the operating cost of vessels. The Cape size vessels, which were earning in excess of USD 150,000 per day, were not in a position to cover even their basic operating expenses of USD 6,000 to USD 7,000 a day.
Analysts said that the collapse in freight and time charter rates has reduced the flow of new and second hand vessel deals. The official said that even if there was some demand coming from tankers or in the offshore segment, it has become difficult to secure trade finance.
According to the official, shipping companies were also finding it difficult to get any credit for earnings or assets. And the situation was expected to worsen.
(Source from Exim News Service)
Indian steel majors focus on rural market to ramp up revenues - 04 Feb 2009 The Financial Express reported that a slowdown in demand in the automotive sector and shrinking export orders have prompted leading steel companies to increasingly focus on the rural market. This is in line with cement companies, who have already riveted their attention to the rural housing sector.
Experts added that steel demand growth in the rural market is currently at 5% to 6% and is likely to grow further. Experts added that the fall in exports and decline in new orders will force more players to sell their products in the rural markets.
JSW Steel, India’s third largest steel producer, while announcing its Q3 results said that it will focus on the rising demand in the rural market and Q4 will witness maximum revenue coming from the non urban segment.
Mr Sajjan Jindal vice CMD of JSW Steel said that “We are also specially designing products for the rural market, which include galvanized sheets, color coated sheets, among others.”
Essar Steel said that it is currently serving the small and medium enterprise segments through its 80 retail outlets in India. The company plans to add more outlets in order to meet the rising rural demand. An Essar Steel spokesperson told FE, about 20% to 25% of our total revenue comes from the retail segment.”
However, the company sells galvanized sheets, hot and cold rolled coils and a small percentage of long products through its retail outlets.
Currently, the Union ministry of steel and the Institute for Steel Development and Growth had decided to jointly commission a study to assess the demand for steel in rural areas up to the year 2020 and will promote increased use of steel in rural India. These include the introduction of steel bullock carts in villages and facilitating increased usage of steel in rural housing and rural construction.
(Sourced from The Financial Express)
TATA Metaliks Q3 down by INR 218.31 crore - 04 Feb 2009 ET reported that TATA Metaliks Ltd has a sizeable INR 218.31 crore net loss for the quarter to December 31st 2008, against a net profit of INR 15.86 crore for the corresponding quarter ended December 31st 2007. It net sales for the period stood at INR 174.31 crore, which fell 39% from INR 271.92 crore in the earlier corresponding quarter.
Mr Harsh Jha DM of TATA Metaliks said that "As per mark to market accounting norms for inventory valuation, we had to revalue our stock of raw material and finished goods at the current market price. During this period, coke and coal prices crashed by over 60% As a a result, we had to suffer a loss INR 132 crore on raw materials alone and another INR 60 crore on finished goods. This made up for a total loss of INR 192 crore on account of inventory valuation."
In the accompanying notes to the results sent to BSE, it said that it made INR 132.24 crore loss on account of a write down of closing inventories that is not receivable value in accordance with Accounting Standards 2 norms.
(Sourced from Economic Times)
Steel Strips Wheels Q3 down by INR 7.46 crore - 04 Feb 2009 Steel Strips Wheels Ltd has announced that the financial results for the quarter ended on December 31st 2008. The net sales was at INR 5958 million for quarter ending on December 31st 2008 against INR 6412 million for the quarter ending on December 31st 2007. The net sales were at INR 24404 million for 9 months ending on December 31st 2008 against INR 18633 million for the 9 months ending on December 31st 2007.
It net profit was at INR 286 million for the quarter ending on December 31st 2008 against INR 364 million for the quarter ending on December 31st 2007. The net profit was at INR 746 million for the 9 months ending on December 31st 2008 against INR 1133 million for the 9 months ending on December 31st 2007.
Macroeconomic indicators - IMF sees 6.5% growth for India - 04 Feb 2009 According to IMF’s update to its World Economic Outlook, Indian economy will register a growth of 6.5% in 2010 while China’s growth rate will be 8%.
According to the International Monetary Fund, there will be an impressive global growth by 3% in 2010. Meanwhile, US will bounce back to grow by 1.6%, the Euro area will grow by a minuscule 0.2%, the UK by a similar rate and Japan by a somewhat better 0.6%.
It, however, said that the advanced economies are projected to record a 2% decline in output in 2009, while India's growth projections has been lowered from 6.3% to 5.1% and that of China from 8.5% to 6.75%.
The Fund said that the US where the current global crisis originated will suffer a decline of only 1.6%, the UK will see its economy shrink by 2.8%, Japan by 2.6% and Germany by 2.5%. Besides, the Euro area as a whole will fare worse than the US with a 2% drop in output this year, the IMF projected, adding that the global GDP will shrink to a 60 year level.
The Fund further added that the financial strains will continue to pull down the real economy and added that no sustained recovery was possible unless the banking sector was restructured and credit markets unclogged.
(Sourced from Commodity Online)
HSBC Global offloads 0.13% stake in JSW Steel - 04 Feb 2009 It is reported that HSBC Global Investment has reduced its stake in JSW Steel to 2.99% through an open market sale for an estimated INR 5 crore.
JSW Steel in a disclosure to the Bombay Stock Exchange said that HSBC Global Investment Fund and its Mauritius arm has offloaded 2.37 million shares, representing 0.13% stake in the company.
Based on the closing share price of JSW Steel on the BSE as on January 30th the deal value comes to a little over INR 5 crore. HSBC Global, which held 3.12% in JSW Steel earlier, now holds 56 million shares representing 2.99% in the company.
Directory of Refractory Makers in India - 04 Feb 2009 'Directory of Refractory Makers in India' in India is one of the top sources of information available on a refractory makers in India. It is one of the most comprehensive and accurate directory of refractory makers in India that ever published. This powerful directory is your connection to the entire refractory companies in India.
Indian exports up by 29% in April to December 2008 - 04 Feb 2009 India’s cumulative value of exports for the period April to December 2008 was USD 131,990 million as against USD 112,737 million registering a growth of 17.1% in Dollar terms and 28.7% in Rupee terms over the same period last year.
Exports during December, 2008 were valued at USD 12690 million which was 1.1% lower than the level of USD 12825 million during December, 2007. In rupee terms, exports touched INR 61715 crore, which was 22% higher than the value of exports during December, 2007.
India’s Imports during December, 2008 were valued at USD 20256 million representing an increase of 8.8% over the level of imports valued at USD 18610 million in December, 2007. In Rupee terms, imports increased by 34.2%. Cumulative value of imports for the period April to December, 2008 was USD 225809 million as against USD 171718 million registering a growth of 31.5% in Dollar terms and 44.8% in Rupee terms over the same period of 2008.
Oil imports during December, 2008 were valued at USD 4712 million which was 30.9% lower than oil imports valued at USD 6824 million in the corresponding period last year. Oil imports during April to December, 2008 were valued at USD 78827 million which was 44.8% higher than the oil imports of USD 54421 million in the corresponding period last year.
Non oil imports during December, 2008 were estimated at USD 15544 million which was 31.9% higher than non oil imports of USD 11786 million in December, 2007. Non oil imports during April to December, 2008 were valued at USD 146982 million which was 25.3% higher than the level of such imports valued at USD 117297 million in April to December, 2007.
The trade deficit for April to December, 2008 was estimated at USD 93819 million which was higher than the deficit at USD 58981 million during April to December, 2007.
Exports
| Period | Dec'08 | Apr-Dec'08
| | 2007-08 | 50,580 | 454,997
| | 2008-09 | 61,715 | 585,594
| | Change | 22% | 28.70%
| | | |
(In INR crore)
Imports
| Period | Dec'08 | Apr-Dec'08
| | 2007-08 | 73,395 | 693,445
| | 2008-09 | 98,515 | 1,003,947
| | Change | 34.20% | 44.80%
| | | |
(In INR crore)
Trade balance
| Period | Dec'08 | Apr-Dec'08
| | 2007-08 | -22,815 | -238,448
| | 2008-09 | -36,800 | -418,353
| | Change | -13,985 | -179,905
| | | |
(In INR crore)
BHP Billiton H1 profit before one offs up by 2.2% - 04 Feb 2009 World's biggest miner BHP Billiton reported a 2.2% YoY rise in first half profit, buoyed by strong China demand for iron ore and metals which has now fizzled with the global economic slump.
It’s July to December 2009 profit before one offs rose to USD 6.13 billion from USD 5.995 billion a year earlier.
Costs increased by USD 1.9 billion, with nearly a third of that due to higher fuel, energy and raw materials, such as explosives, but those prices are now coming off.
Earnings from iron ore, its biggest earner, more than doubled to USD 4.1 billion, while earnings from petroleum jumped 36% to USD 2.7 billion. The group's base metals division reported a loss, as sliding metals prices whacked USD 2.9 billion off its earnings.
BHP revealed additional write downs beyond the impairments to its Ravensthorpe nickel laterite and Yabulu nickel refinery expansion projects which had already been announced, lowering its net profit 56.5% to USD 2.6 billion from USD 6 billion in the first half last year.
The miner took USD 508 million of impairments for its rehabiliation obligations on the Newcastle steelworks and USD 356 million on its withdrawal from Suriname aluminium operations, the closure of its Pinto Valley copper mine in the US and the write down of the Corridor Sands mineral sands project in Mozambique.
BHP said the results were achieved in an environment which had deteriorated significantly' during the period, particularly during the last quarter.
Mr Marius Kloppers CEO of BHPB said "Six months ago we said the economic activity on a worldwide basis was moderating. It is fair to say we like most other people did not see the speed or the dramatic nature of the downturn that has occurred, which is certainly unlike anything I have seen before.”
Mr Bolfo sees no upturn in global steel demand in 2009 - 04 Feb 2009 FT quoted Mr Bruno Bolfo chairman and owner of Duferco as saying that global steel industry faces a difficult 2 years with a likely 10% fall in demand in 2009 followed by virtually zero growth in 2010.
Mr Bolfo said that any steel company that professed to believe that an upturn in the sector was likely in late 2009 was deluding itself. He added that "The official line from the big companies is that a mild recovery of sorts could start in the second half. Of course, they have to say this, but really there's not much hope. An upturn so soon is just not on the cards."
He said that his gloom was justified by the large contractions in output in many sectors that are big users of steel, including automotive and construction, fields that have been especially hard hit. But there are also others that have been less in the spotlight.
He added that "It is impossible to be optimistic if you look at other areas such as investment in oil exploration and supply, where, even here, activity is much lower than it was."
(Sourced from www.ft.com)
Chinese steel market survey reflects positive trend - 04 Feb 2009 It is reported that over 80% of the steelmakers and traders being surveyed held a correct upward prospect on where the steel market would go after Chinese Spring Festival. As seen from the market in January, the steel prices are stabilizing and trending up amid no heavy inventory pressure and warming confidence but most insiders still behold there are many uncertainties to be concerned.
1. Upward correction
A steel consultancy institute made a survey on rebar and HRC prospect. On rebar, 64% of steelmakers being surveyed believed in correction, 36% in uptrend and nobody in downturn; while 49% of the traders held rebar market will be adjusted, 48%, be pushed up and 3%, pulled down. On HRC, 55% of the steelmakers thought it will stay in correction, 30%, move up and 15% go downward; while 58% of the traders believed in upside and 42% in correction.
Steel prices kept an upward course in Jan that started in mid-Nov. The composite steel price increased some 10%, 7% for longs and 13% for flats in specific, reflecting regaining of confidence. In general, the supply is staying low and inventory at the traders is not much. Leading steelmakers had lifted ex-w price for some products before the holiday, which also lent supports to the up-trending market.
2. Uncertainty 1-capacity to expand or shrink?
With a capacity of about 650 million tonnes of crude steel, China produced some 500 million tonnes in 2008. This suggests a big room for possible change of the output this year.
Steel analyst Liuyuan said the steelmakers' cut in production was the main reason behind decreasing supply and up-trending market at the moment. But this may in turn stimulate more startups and resumptions and threaten the market again if the demand recovery lags behind.
3. Uncertainty 2-downstream demand is recovering?
The deteriorating demand for steel from downstream sectors has alleviated according to some statistics, but whether it will keep reviving depends. Though PPI, port throughput and power generation figures, Chinese economy is believed having improved, but no significant signals have been seen in real estate, auto and other major steel consuming industries. Though construction steel and railway steel may have a better future on the nation's expansion of infrastructure construction, flats appears lackluster due to bygone of the fast-growth of machinery and decrease in new ship orders etc.
4. Uncertainty 3-Import and export quite a mystery
This year is expected to bear heavier pressure than last year on steel export because of possible worsening of economies in US, Europe and the emerging ones. Steel export is poorly driven this period by narrowing price gap as the overseas price remains low while domestic price starts rising. Moreover, protectionism, change of exchange rate etc would all dim the prospect of steel export and force some enterprises to sell at home the products originally made for export.
Vanishing of export advantage indicates the home market is facing heavier pressure of import, risking more volatility.
(Source: Xinhuanet)
Production pruning - Ukrainian steel majors cut output in January - 04 Feb 2009 Interfax reported that most of Ukraine's biggest steel mills reduced finished roll production considerably in January 2009.
ArcelorMittal Kriviy Rih, the country's biggest steel mill, reduced finished roll production tentatively 42.9%YoY to 337,000 tonnes.
Azovstal said it reduced roll output 53.2%YoY to 222,000 tonnes, Zaporizhstal reduced it 25%, also to 222,000 tonnes and the Ilich Iron & Steel Works of Mariupol saw output plummet 57.3% to 194,000 tonnes.
The Alchevsk Iron & Steel Works, a member of the Industrial Union of Donbass group, cut roll output 10.8%YoY to 273,000 tonnes, but IUD's Dzerzhinsky Metallurgical Comb
(Sourced from Interfax)
Japanese Q4 raw steel output to be lowest since 1970 - 04 Feb 2009 According to steel makers report to ministry of economy, trade & industry, Japanese raw steel production would decrease to 19.262 million tonnes in January to March 2009 quarter, down by 27% QoQ and down by 37.5% YoY.
The production is the lowest level since fiscal 1970 ended March 1971 when Nippon Steel was formed by Yawata Steel and Fuji Steel. With the low operation, the annual production decreases by 27% to 107.16 million tonnes in fiscal 2008, which is the first drop in 3 years.
(Sourced from www.japanmetalbulletin.com)
Iron ore spot price will be flat in 2009 - Mr Firoz - 04 Feb 2009 Platts quoted Dr AS Firoz former chief economist at India's the Ministry of Steel as saying that the iron ore spot market will grow in importance and become more strategically positioned in the global supply chain, with spot prices slipping due to oversupply and a slump in demand.
Mr Firoz now managing partner of SNRSR research said that the current iron ore spot market is currently in oversupply, given the combined effects of a ramp up in miners output capacity and a slump of steel demand. He said that steel production will be flat, if not fall, in 2009, adding that iron ore infrastructure including port capacity and railways would fare better than in the past.
He said that "Given the weakness in supply and demand fundamentals, iron ore spot prices won't have too much room to continue to go up."
He added that the 2009 long term contract price will probably settle at USD 50 per DMT to USD 55 per DMT FOB Brazil. When adding a forecast freight rate of USD 15 per WMT, this gives a price range of 65 per DMT of 70 per DMT on CFR basis for long term contracts.
He said that "The spot market price will probably follow that price or even a bit lower because steel mills have the flexibility to switch between these 2 markets, given the supply glut. It makes business sense to have certain contract in spot trades. They need flexibility to switch between spot and contract to take advantage of higher spot prices or to benchmark their contract price."
According to Mr Firoz, Anglo-Australian miner BHP Billiton sold more cargoes on the spot market than annual contracts in the forth quarter of 2008, as its long term customers had either delayed or canceled shipments of annual contract material.
The seaborne spot price for 62% Fe-content iron ore fines imported into China, assessed by Platts has run up by 19% from USD 62 last December to USD 74 DMT CFR North China as of January 30th. Spot prices have been historically higher than the annual benchmark contract prices. Going forward, Mr Firoz predicted that iron ore prices would probably converge at the long term contract price level.
(Sourced from Platts)
Japanese steelmakers to start rail export talks to US - 04 Feb 2009 It is reported that Japanese integrated steelmakers are expected to start negotiations in early February on their deals of rail exports to the USA for shipments in the first half of fiscal 2009. Indications are that the Japanese steelmakers will work out the terms of offers shortly for the negotiations to meet the existing inquiries from major US railroad corporations.
In the past, an annual supply contract was the norm of the Japanese steelmakers' rail exports to the USA. Of late, though, the Japanese steelmakers have shifted to semiannual deals in what they export there.
In the USA, the economic situation is in bad shape due to the financial crisis. As a result, domestic distribution volumes of commodities are thought to have fallen considerably, leading to decreased transports by railroad. In the October to December 2008 quarter, transports by railroad were reported to have come under a pronounced decrease.
Given a fall in transports by rail in the USA, there was a predominant feeling in Japan's steel industry sources that US demand for rail imports from Japan would decline in Japanese fiscal 2009. But the existing inquiries from major US railroads for Japanese rail supplies are described as similar to what occurred last year. Therefore, it is understood that the existing inquiries call for total supplies of 60,000 tons or so. In the case of 2008, Japanese steelmakers' sales volumes of rail exports to the USA are estimated to have totaled 120,000 to 130,000 tonnes.
With falling prices of ferrous scrap in the USA, there is a possibility that local electric steelmakers have reduced what they charge for domestic sales of rails. As a result, chances are the Japanese steelmakers will face tough negotiations on prices in their rail exports to the USA for April to September 2009 period shipments. There are forecasts that the Japanese steelmakers will seek a flat price level in what they negotiate with the US railroads.
(Sourced from TEX Report Limited)
Murchison and Mitsubishi increase iron ore resources at Jack Hills - 04 Feb 2009 Murchison Metals advised that total iron ore resources at the Jack Hills Iron Ore Project in Western Australia are now estimated to exceed one billion tonnes.
The Jack Hills Resource now stands at
1. 96 million tonne @ 58.7% Fe Direct Ship Ore (DSO)
2. 991 million tonne @ 34.1% Fe Beneficiation Feed (BFO)
It said that “The confirmation of the scale and high quality of the resource represents a significant boost for the proposed Stage 2 expansion of the Jack Hills Project to make it the premier large-scale, long-life iron ore producer in the mid-west region of Western Australia.”
Murchison noted that this is an interim resource increase only, with results from the Brindal zone yet to be incorporated into the orebody model. Drilling is also continuing to test extension of the existing resources, including at the North East Ridge, Brindal, Silver Spur and Mt Hale zones. While the DSO resource is sufficient to support a significant expansion of the existing high-grade direct ship operations at Jack Hills, the large BFO resource has been independently assessed as one of Australia’s highest quality and commercially attractive magnetite development opportunities.
Mr Trevor Matthews MD of Murchison said that the upgraded resource estimate and metallurgical results clearly demonstrated the potential of the Jack Hills project to underpin the development of the iron ore industry in the mid-west region for many years to come.
He said that “These extremely positive results further prove that Jack Hills has the scale and quality to become the premier large-scale iron ore development in the mid-west, and we look forward to bankable feasibility studies for the Stage 2 expansion being completed over the next 12 months.”
Mr Matthews added that “With Jack Hills underpinning Oakajee Port & Rail’s parallel development of port and rail infrastructure in the region, Murchison is well placed to become one of Australia’s leading independent mining groups.”
The Jack Hills Project is owned and operated by Crosslands Resources. Crosslands is owned as to 50% by Murchison and 50% by Mitsubishi Development Pty Ltd, a subsidiary of Mitsubishi Corporation of Japan.
Getex warns against chromium hazards - 04 Feb 2009 Getex has warned metal workers of the hazards of chromium compounds, which are used to make steel and for electroplating.
Chromium laden paint is usually found on ships and on industrial metal structures. Additionally, chromium and its compounds are used in steel making and electroplating.
Chromium targets the respiratory tract, and while it is a naturally occurring essential nutrient involved in glucose, protein and fat metabolism, exposure to excess amounts ranks in the top 10% in terms of danger to human health.
Zinc chromate dust is distinctively yellow. As a dry film, it is inert and presents no risks, until it is disturbed by sanding, grinding and welding activities. Zinc chromate dust can cause short term skin irritations, rashes, ulcers and irritation of the eyes, ears, nose and throat.
Chromate laden paints should be treated in the same way as leaded paints, and is covered by the Australian Standard AS 4361.2- 1998.
Where Chromium is found, workers should prepare a Hazardous Materials Register. This register should be updated whenever there is a change in the situation. A management plan should also be used to ensure people are not exposed to the hazard without proper precautions.
Getex can aid in preparing the register, by surveying painted surfaces, conducting scratch tests, spot testing and arranging for laboratory analysis of samples.
(Sourced from www.metalworker.com.au)
South Steel Co project inks financing deal with BSF - 04 Feb 2009 Arab News reported that the Banque Saudi Fransi has come forward as a sole financing agent and has signed an SR912.5 million deal to finance the South Steel Co project, one of the largest steel projects in the Gulf region.
On behalf of the bank, the deal was inked by Mr Jean Marion MD of BSF, while Sulaiman Saleem Al-Harbi chairman of Saudi Pan Kingdom Holding Co signed, on behalf of South Steel Co. The event was attended by several senior bankers and SPKH executives including Abdulrahman Al-Jawa, BSF’s deputy MD and Mohammed Al-Jedia MD of South Steel Company.
The first phase of South Steel Co. project, which has a paid-up capital of SAR 450 million, will attract total investment of SAR 1.3 billion. The BSF has made available SAR 912.5 million for this project, which will kick off production in 2011. This steel project is being promoted by SPKH, which owns 60% of the project, while 40% is divided into three partners including the UAE based Dubai Investments Industries, which has acquired a 10% stake.
The built-up area of the steel factory in Jazan Economic City will be 6000 square meters out of a total area of one million square meters. Promoted by SPKH, the new steel plant will be set up with technological assistance from Germany-based SMS Group, to produce top-quality steel billets and reinforcement bars in accordance with international standards.
Mr Marion told media that “The BSF is a strong bank and it continues to lend funds for good projects even in this period of global economic downturn.”
Mr Al-Harbi said that the project will be set up in three distinct phases. The first phase, on which the construction will start soon, will produce 1.5 million tonnes of steel of different kinds.
(Sourced from Arab news)
US Steelmakers see operating losses in Q1 2009 - 04 Feb 2009 US Steel and AK Steel said that they expect operating losses in the first 3 months of 2009 and Nucor Corporation forecast only marginally better earnings as compared with its fourth quarter. The forecasts came in earnings reports showing a reversal of fortune for an industry that recently notched record profits.
Mr Daniel DiMicco CEO of Nucor said that ''Entering the first quarter of 2009, conditions remain as challenging as they were in the fourth quarter.''
United States Steel Corporation reported a substantially higher fourth quarter profit, largely due to skyrocketing sales of tubular steel products used in oil and gas drilling. Sales of US Steel's other products faltered during the last 3 months of 2008 and it faces an extremely difficult global economic environment.
Mr John Surma CEO of US Steel said that ''We do not know when conditions may improve, but we are well positioned to fully participate in a market recovery when it occurs.''
According to a recent metals industry report by Morgan Stanley, steel prices have recovered modestly from their lows in December, but 2009 is still expected to be a very poor year for industry profits. The report said that ''We believe full year global demand will contract 5%, its first contraction since 1998.''
Meanwhile, AK Steel Holding Corporation swung to a fourth quarter loss, hurt by a big pension charge and falling demand. Its quarterly loss totaled USD 430.6 million. A year earlier, it earned USD 106.7 million. AK Steel, in November 2008, said that it was temporarily closing plants in Ohio and Kentucky, affecting more than 1,100 workers, because of sharply lower demand.
(Sourced from www.hsconnect.com)
FMG settles dispute by forming shipping venture with Bocimar - 04 Feb 2009 Bloomberg reported that Fortescue Metals Group Ltd has formed a shipping venture with Bocimar International NV to settle a dispute over freight contracts agreed last year.
Bocimar will receive AUD 11 million of Fortescue shares to settle the dispute and a further AUD 28 million of stock in December to secure the charter of three cape size vessels.
FMG said that “The shipping rates for the vessels are fixed for a 10 year period at “today’s historically low rates. Profits from sub chartering the ships will be shared equally.”
(Sourced from Bloomberg)
Chinese HRC export market remains non existent - 04 Feb 2009 It is reported that Chinese steel export market remain quiet in the first week following Chinese New Year holiday. Import offers are further raised on good Chinese demand. However, some importers have become anxious as Chinese domestic steel prices have turned soft this week.
Domestic steel prices continue to rebound. On Shanghai market, commercial 4.75mm to 12mm*1500mm HRC goes at CNY 3900 per tonne to CNY 3920 per tonne up by CNY 100 per tonne to CNY 120 per tonne from yesterday. That for 4.75mm to 12mm*1800mm goes at CNY 4000 per tonne a drop of CNY 70 per tonne to CNY 100 per tonne. The abrupt decrease of spot rates is believed to be driven by the dive in Shanghai forward market, where HRC price has witnessed a sharp decrease of CNY 240 per tonne to CNY 250 per tonne in two trading days.
Taking Shanghai price for commercial 4.75mm to 12mm*1500mm HRC as benchmark, prices are expected to see further downward correction if it could not exceed CNY 4000 per tonne.
Prevailing export quotation for commercial HRC is at USD 560 per tonne to USD 600 per tonne FOB and most offers are between USD 560 per tonne to USD 590 per tonne FOB. Export prices seem to be meaningless at moment as there is really little transaction.
(Sourced from MySteel.net)
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Chinese export levels to help Ukrainian and Russian steelmakers - 04 Feb 2009 Rusmet reported that export levels of Chinese steel products remain higher than export levels from Ukraine and Russia.
Export prices for Chinese flat products stays at a level of USD 550 per tonnes to USD 590 per tonnes FOB for hot rolled coils and USD 615 per tonnes to USD 640 per tonnes for cold rolled ones.
At the same time deliveries of hot rolled coils from the CIS pass at the price of USD 420 per tonnes to USD 450 per tonnes CFR.
Ukrainian, Russian and Indian steel suppliers are measured to take advantage of such situation and to sell their products
(Sourced from Rusmet.ru)
AWU called for 'Use Australian Steel' campaign - 04 Feb 2009 It is reported that Australian Workers' Union has called for a nationwide 'Use Australian Steel' campaign to ensure local steel mills keep running.
It may be noted that the federal government might attempt to counter the financial crisis by spending on infrastructure. According to the AWU, this should include the use of Australian steel, in order to reduce steel industry job losses.
The union has also pointed out the emissions trading scheme is disadvantaging Australian steel companies and the government should be doing more to level the playing field.
(Sourced from www.metalworker.com.au)
Nippon Steel may revise its production outlook - Report - 04 Feb 2009 Reuters reported that Nippon Steel Corporation will look at revising its production outlook after seeing Toyota Motor Corporation and Honda Motor Co's first quarter output plans due later this month.
Mr Kiichiroh Masuda executive VP of Nippon Steel said that the company would continue its strategy of expanding globally despite the current economic downturn, as demand is expected to recover somewhat in a few years. He added that "We are closely watching Toyota and Honda's April to June 2009 period production plans and we will review our plans then. In case Toyota cuts its April output plans, we will further reduce our production after April, though we think the chance is small."
Nippon Steel has said that its output will plunge by about 40% in January to March 2009 period from a year earlier to a record low 5 million tonnes. It plans to idle two blast furnaces for several months to cope with the production cut, but expects to restart them later this year, betting automakers will see inventories return to appropriate levels by June and start increasing output to match real demand by around July at the latest.
Mr Masuda said that a pick up in steel prices and a strengthening of demand for construction machinery in China are bright signs, but they should be carefully watched for another month for whether they indicate a real recovery. He also said that Nippon Steel would continue its strategy of expanding in the global market, with a view that demand will recover to a certain level after three years.
(Sourced from www.reuters.com)
POSCO to expand coke production at Gwangyang - 04 Feb 2009 POSCO Group of Seoul in South Korea, the world’s fourth biggest steel producer, has commissioned Uhde to provide extensive services for the construction of four new coke oven batteries to expand their coke production by more than 2.3 million tonnes per year. The coke plant is to be built at Gwangyang, a port city on the south coast, some 300km south-east of the capital Seoul.
Uhde’s scope of services will include the complete basic engineering package as well as the process-relevant detail engineering, supply of core components and supervision of the construction and commissioning activities. The contract will be implemented in a consortium with two member companies of the POSCO Group, POSCO Engineering & Construction Co Ltd and POSCON Corp. These two companies will undertake part of the detail engineering as well as local supplies. Mr Klaus Schneiders chairman of Uhde's Executive Board said that "This major contract worth significantly more than EUR 100 million underlines the good reputation we enjoy in the coke-making sector throughout the world with our wide range of technological solutions from revamps to complete new plants.”
Together, the four coke oven batteries will have a coal throughput of approximately 3.8 million tonnes per year and will produce a total of about 2.3 million tonnes of coke annually. These four coke oven batteries will comprise 200 large capacity coke ovens with a chamber height of 7.6m. A new gas treatment unit with a throughput of 175,000 standard cubic meters per hour will also be built at the same time. The first two coke oven batteries and the gas treatment unit are due to come on-stream in autumn 2010 and the other two will start production a year later.
This new contract is the latest chapter in what has become a fruitful partnership between the South Korean POSCO Group and Uhde’s coke plant technologies division over the last 20 years or so. In 2007 Uhde successfully commissioned a new 750,000 tonne-per-year coke oven battery for POSCO in Pohang, South Korea, meaning that in total nine coke plant expansion stages have so far having been completed for POSCO at its works in Pohang and Gwangyang.
Uhde will equip the new coke plant with state of the art technology, including large-capacity ovens which not only save space and reduce operating costs, but are also greener. In particular, application of the PROven® system will prevent the otherwise normal emissions from oven closures and charging operations.
The gas treatment unit will also be designed to the state of the art. All components will be operated in closed systems in order to rule out emissions and Uhde’s two proprietary processes, CYCLASULF® and MONOCLAUS® will be combined to guarantee the best possible desulphurisation of the coke oven gas and the recovery of high-purity sulphur. In addition a biological wastewater treatment unit will ensure environment-friendly treatment and disposal of the process wastewater and Uhde’s COKEMASTER® system for the automation of all plant components in the battery and gas treatment sections will provide for not only safe but also process and cost-optimised operation
Uhde is a company in the Technologies segment of the ThyssenKrupp Group and has a workforce of more than 4,900 employees worldwide. The company's activities focus on the engineering and construction of chemical and other industrial plants in the following fields: fertilisers; electrolysis; gas technologies; oil, coal and residue gasification; refining technologies; organic intermediates, polymers and synthetic fibres; and also coke plant and high-pressure technologies. We also provide our customers with professional services and comprehensive solutions in all areas of industrial plant operation.
Evraz Group announce 2008 operational result - 04 Feb 2009 Evraz Group S.A released its Q4 2008 and full year 2008 operational results as follows.
| | 2008 | 2007 | Change | Q4'08 | Change
| | Pig iron | 13,260 | 12,664 | 4.70% | 2,291 | -36.70%
| | Crude steel | 17,674 | 16,509 | 7.10% | 3,251 | -33.50%
| | Rolled products | 16,082 | 15,262 | 5.40% | 2,899 | -35.10%
| | Semi-finished products | 4,243 | 4,159 | 2.00% | 635 | -50.50%
| | Construction products | 5,215 | 5,274 | -1.10% | 781 | -40.70%
| | Railway products | 2,455 | 2,267 | 8.30% | 545 | -20.80%
| | Flat-rolled products | 2,632 | 2,215 | 18.80% | 512 | -33.40%
| | Tubular products | 844 | 470 | 79.60% | 309 | 22.30%
| | Other steel products | 693 | 877 | -21.00% | 117 | -27.10%
| | | | | | |
In ‘000 tonnes
Russia| | 2008 | 2007 | Change | Q4'08 | Change
| | Pig iron | 11,355 | 12,064 | -5.90% | 1,960 | -37.50%
| | Pig iron (saleable) | 758 | 1,030 | -26.40% | 33 | -85.30%
| | Crude steel | 13,082 | 14,057 | -6.90% | 2,190 | -38.80%
| | Rolled products | 11,587 | 12,406 | -6.60% | 1,992 | -35.90%
| | Semi-finished products | 4,563 | 4,782 | -4.60% | 815 | -37.00%
| | Construction products | 4,186 | 4,608 | -9.20% | 625 | -40.90%
| | Railway products | 1,995 | 1,812 | 10.10% | 433 | -23.60%
| | Flat-rolled products | 325 | 470 | -30.80% | 50 | -22.00%
| | Other steel products | 517 | 733 | -29.50% | 70 | -45.20%
| | | | | | |
In ‘000 tonnes
Europe| | 2008 | 2007 | Change | Q4'08 | Change
| | Crude steel | 802 | 909 | -11.70% | 182 | -16.80%
| | Rolled products | 1,305 | 1,376 | -5.20% | 254 | -26.00%
| | Construction products | 146 | 150 | -2.70% | 21 | -52.50%
| | Flat-rolled products | 1,066 | 1,125 | -5.20% | 205 | -28.30%
| | Other steel products | 94 | 102 | -8.20% | 28 | 105.00%
| | | | | | |
In ‘000 tonnes
North America| | 2008 | 2007 | Change | Q4'08 | Change
| | Crude steel | 1,908 | 888 | 114.80% | 544 | -10.40%
| | Rolled products | 2,577 | 1,610 | 60.10% | 660 | -17.40%
| | Construction products | 393 | 331 | 18.80% | 56 | -45.80%
| | Railway products | 460 | 455 | 1.00% | 112 | -8.10%
| | Flat-rolled products | 880 | 354 | 148.50% | 183 | -43.00%
| | Tubular products | 844 | 470 | 79.60% | 309 | 22.30%
| | | | | | |
In ‘000 tonnes
South Africa| | 2008 | 2007 | Change | Q4'08 | Change
| | Pig iron | 738 | 510 | 44.50% | 154 | -24.00%
| | Crude steel | 796 | 578 | 37.90% | 171 | -21.40%
| | Rolled products | 660 | 478 | 38.00% | 135 | -23.10%
| | Construction products | 266 | 173 | 53.20% | 53 | -27.60%
| | Flat-rolled products | 34 | 39 | -13.50% | 8 | -49.80%
| | | | | | |
In ‘000 tonnes
Aceros Arequipa Q4 net sales up by 8% YoY - 04 Feb 2009 BNamericas reported that Aceros Arequipa took a PEN 197 million net loss in fourth quarter of 2008 as compared to a PEN 9.88 million net loss. Net sales in the period rose to PEN 391 million from PEN 362 million. Costs went up in the recent quarter to PEN 365 million from PEN 282 million.
In all of 2008, Aceros Arequipa made a net profit of PEN 130 million as against PEN 113 million in 2007. Net sales in 2008 amounted to PEN 2.17 billion as compared to PEN 1.34 billion. Costs rose to PEN 1.53 billion from PEN 1.03 billion.
Aceros Arequipa is expanding production from 540,000 tonnes per annum to 1 million tonnes per annum in 2010.
(Sourced from www.bnamericas.com)
Tokusen Kogyo Co draws finest piano wire in 0.009mm - 04 Feb 2009 It is reported that Japanese specialty steel maker Tokusen Kogyo Co has developed piano wire with a diameter of 0.009mm.
To make the wire, the company first developed drawing equipment and dies.
The wire is expected to be used in cutting silicon wafers for solar cells and semiconductors. It could also find application in a broad range of fields, including medicine.
Tokusen Kogyo plans to begin selling the wire in the near future at a yet to be determined price.
(Sourced from www.tradingmarkets.com)
Production pruning - Cliffs Natural to halts West Virginia coal mines operation in February - 04 Feb 2009 US iron ore and coal miner Cliffs Natural Resources will halt production for a month at its Pinnacle mine complex, in West Virginia, in response to weak demand.
As per report operations will be stopped from February 2 to 28, affecting 360 employees and reducing group production by some 85 000 tonne of metallurgical coal.
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 vice president of Cliffs North American Coal said that "The month long production curtailment at Pinnacle is necessary to balance our production and inventory with customer demand.”
The Pinnacle complex 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, while the prep plant will operate on a reduced schedule to serve customer requirements, the company said. The Green Ridge #2 mine was previously idled.
Cliffs, which is the biggest iron-ore producer in North America, said in December it would reduce iron-ore production at its six mines in the US and Canada, in response to falling demand and prices.
(Sourced from miningweekly.com)
Indian iron ore fines spot CNF prices flat - 04 Feb 2009 The China Chamber of Commerce of Metals, Minerals and Chemicals Importers and Exporters has released the average reference prices for import transactions of Fe 63.5% Indian iron ore concluded last week on February 2nd2009.
| Delivery | This week (Feb 2) | Last week(Jan 19)
| | FOB Indian port | USD 68 to USD 72 | USD 68 to USD 70
| | CIF Chinese port | USD 80 to USD 84 | USD 78 to USD 83
| | | |
The change is with respect to prices posted on January19th 2009
The CCCMC reference prices are average prices for import transactions of Fe 63.5% Indian iron ore concluded the week prior to issuance date of such reference prices. The reference price practice is intended to regulate the domestic trading of Indian iron ore and avoid speculation on the raw material for China's booming steel industry.
Venezuela reaches strategic agreement with Swiss CME - 04 Feb 2009 VHeadline Venezuela News reported that the Venezuelan government has created a National Iron & Steel Corporation and has reached a strategic agreement with Swiss Commodities & Minerals Enterprise Limited to re activate iron mining operations at the old Cerro Bolivar mine in southeastern Bolivar State.
Mr Hugo Chavez President of Venezuela explained how the new corporation will plan and control all activities in the iron mining sector from exploitation thru resource transformation.
He said that a production goal for the first year of re activation has been set at 1 million tonnes rising to 3 million tonnes in the second year of operations. The entirety of the iron production, which is associated with other minerals, will be in the hands of the recently created National Iron & Steel Corporation as part of the Venezuelan Guayana Corporation.
Commodities & Minerals Enterprise is to be sold to the Popular Republic of China as part of an agreement that will see the Venezuelan government invest around USD 220 billion in the development of mining, agricultural, oil & gas, power generation, infrastructure and housing projects over the next four years.
(Sourced from vheadlinevenezuelanews.com)
Puda Coal to consolidates 6 coal mines - 04 Feb 2009 Puda Coal Inc a supplier of China's high grade metallurgical coking coal used to make coke for the purposes of steel manufacturing announced that the Company signed a letter of intent with a local county government located in Shanxi Province to consolidate the County's six coal mines and construct a coal gangue power plant.
According to the letter of intent, the County will apply for project approval from the Shanxi provincial government for consolidation of the coal mines. Upon receiving provincial approval, Puda Coal will work with the County to consolidate and restructure the six coal mines. Pursuant to the letter of intent, after the County has obtained all supporting documents related to the gangue power plant, Puda Coal will work with the County to construct a 2x135 MW coal gangue power plant. Both the consolidation of the coal mines and construction of the power plant will comply with the Shanxi provincial government's mandate to accelerate the pace of consolidation and restructuring of coal mining enterprises.
Following approval of the project from the provincial government, the Company will invest the funds required to increase production capacity of the mines after consolidation and will also provide the funds necessary to construct the coal gangue power plant. Details related to timeframe to obtain the provincial government approval and the requirements and conditions for any binding agreement for detailed coal mine consolidation to be executed are not yet available.
Mr Liping Zhu CEO and President of Puda Coal said that ''We are excited about this opportunity and view this letter of intent with the County government as a step forward in our efforts to enter into the coal mining industry and extend our reach along the coal value chain. We look forward to the opportunity to leverage our experience in the coal industry to consolidate and fully utilize the mines and to construct a coal gangue power plant to help serve China's increasing demand for energy.''
Directory of Steel Pipe Makers in China - 04 Feb 2009 Welded pipe and seamless pipe are the two major categories of tubular products in China and are not only used domestically but are exported across the world.
China's seamless pipe enterprises began expansion from 2004. By end of 2006, the nation's capacity of this products reached 16.5 million tonnes. As the world's first producer, China has over 300 seamless steelmakers, a part of which possess first rate manufacturing technology and most advanced facilities, bringing domestic sufficiency close to 90%.
On welded pipe, the producers are distributed more scattered, bulk of which are privately owned and have a relatively big capacity. Yet, many productions are affected by seasonal factors and actual output can be less than the total capacity of 37 million tonnes. ERW accounts for around 80% of the total welded pipe production capacity.
Published in December 2008, 'Directory of Steel Pipe Makers in China ' has been comprehensively researched and prepared, to bring you a fully up to date guide to Chinese steel pipe industries.
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Content:
This report covers name and product details of 1208 steel pipe manufacturers of China in alphabetical as well as location wise order. Look at the information you'll get in the 'Directory of Steel Pipe Makers in China'
• Company name -1208 entries
• Address-1208 entries
• Email-1193 entries
• Phone number-1207 entries
• Fax number -1203 entries
• Mob -487 entries
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Emirates Steel Industries to start new billet plant - 04 Feb 2009 The National reported that Emirates Steel Industries will start operation of a new steel billet plant in Musaffah this month, paving the way for it to launch the country’s first integrated steelmaking operation in the spring and control a third of the local market.
The plant will serve as a middle link in the integrated chain by turning reduced iron pellets into 1.4 million tonnes of rectangular billets, the raw material for adjacent rolling mills, which cast rebar and wire rod.
Mr Ahmed al Dhaheri, assistant VP for projects at ESI, said that when a third plant starts up in April 2009 to make the pellets, it will be able to transform iron oxide directly into usable products in a USD 820 million operation, an investment that will boost its profit margin and shield it from the volatile prices for steel inputs.
He added that “We were basically dependent on the international market for securing all our raw materials, so the management decided we should become an integrated plant. By being integrated, it gives the company an advantage to compete with other players in the market.”
Mr al Dhaheri however said that he was confident that prices had already hit bottom, and the firm was proceeding with plans to get two new mills up to full production, raising the company’s output capacity to 2 million tonnes per year. He noted that “The volume has increased, and the prices in the last two weeks have turned the corner.”
The ESI facility currently uses imports of billet to produce more than 700,000 tonnes of rebar a year. It controls about 20% of the steel market in the UAE, but as the two new mills ramp up production, ESI will potentially hold 35% of the market.
It is also constructing an adjacent USD 1.5 billion plant that will be a copy of the first integrated complex, but produce 1 million tonnes of structural beams when it opens in 2010.
A third integrated operation, planned for Taweelah, will produce flat steel products, which will serve as raw material for the development of a downstream industry, fashioning anything from boilers to car parts to piping.
A fourth plant will transform up to 10 million tonnes of iron ore into usable pellets, allowing the company to source materials directly from mines. Final investment decisions have not yet been announced for the third and fourth projects.
(Sourced from The National)
Chinalco in talks with CDB for Rio Tinto deal financing - 04 Feb 2009 According to two sources with direct knowledge of the situation, state owned Chinese aluminium company Chinalco is in talks with China Development Bank to secure financing for a potential deal with mining giant Rio Tinto.
Rio Tinto said earlier on Monday that it has held talks with Chinalco its biggest shareholder to sell some assets reportedly worth up to USD 8 billion to cut its debt, but it added there is no certainty a transaction will take place.
Chinalco parent of listed aluminium producer Chalco teamed with US aluminium firm Alcoa last year to buy about 9% of Rio Tinto for USD 14 billion in a deal financed by China Development Bank, which helps finance major overseas deals by Chinese firms.
Since then, the investment has lost about 75% of its value.
One of the sources told Reuters, who asked not to be named due to the sensitive nature of the process "CDB is involved in the situation because Chinalco needs CDB's support for loans as it did for the first deal. Now the two parties are working together to review different options for a possible deal with Rio to protect interests of Chinalco as a minority shareholder."
CDB declined comment when contacted by Reuters.
In November, Chinalco said it planned to lift its stake in Rio Tinto to at least 14.99%.
(Sourced from Reuters)
Slowdown signs - New cars sales drop in January - 04 Feb 2009 Reuters reported that sales of new cars dropped further in Asia and Europe in January as the savage downturn in the industry left its mark on steelmakers on both continents.
With consumers putting off big-ticket buys, new car sales fell by a fifth in Japan last month and South Korea’s automakers moved a third fewer cars. Sales also tumbled 41.6% in Spain, 32.64% in Italy and 8% in France.
As the crisis spreads to suppliers, Nippon Steel Corporation said that it may cut its output further but would wait to see the output plans of leading Japanese automakers for the April to June 2009 quarter before making any changes.
Austrian steelmaker Voestalpine, which generated 25% of its 2007-08 revenue from the auto sector, cut its 2008-09 forecast amid a massive decline in demand and said it could not give an outlook for the following year. The decline in Spanish car sales left manufacturers there desperately in need of aid similar to that announced in other European countries.
France's 7.9% January decline came after a 15.8% drop in December. Sales of French brands dropped 14.8% and took their combined market share to 50%. In Italy, where the government has yet to come up with incentives to encourage drivers to buy cars, sales tumbled 32.64% for the month. Fiat saw sales for its three main brands drop 31.3%, leaving it with a 32.06% share of its home market.
Meanwhile, ANFAC said that government measures announced so far, including loans for people who want to buy new cars to replace older, more heavily polluting models, were insufficient. It added that "The industry urgently needs measures to boost demand. In countries such as the United Kingdom and Sweden, which have lower production than Spain, they have taken measures to support the industry in the form of loan guarantees."
(Sourced from Reuters)
TMK preliminary results for 2008 - 04 Feb 2009 OAO TMK one of the world’s largest oil and gas pipe producers and the market leader of the Russian pipe industry provide the following trading update in advance of the publication of its preliminary results for the year ended 31st December 2008, which will be announced in April 2009.
TMK release said that “This past year, one of the most volatile and challenging for the tubular industry, will be remembered as a turnaround year for TMK. The Company successfully completed all of its planned investment projects, improved its financial performance and became a truly global company following the acquisition of production assets in the United States, the world’s largest tubular market. These high-points were achieved despite the unprecedented increases in commodity prices observed in the first half, the impact of the global financial crisis on demand in certain pipe segments and the necessary stoppage of production facilities, essential to modernize seamless and large-diameter pipe production.
The release added that “TMK finished 2008 with positive results, the Company increased its presence in global markets and launched state-of-the-art production technology, allowing it to broaden and improve its product mix. Additionally, the Company successfully restructured its debt portfolio following the acquisition of IPSCO Tubulars Inc, a stable financial position being especially important in this period of global financial instability.”
As per TMK “Despite oil prices falling in the second half of 2008, Russian demand for seamless OCTG and line pipe remained stable while the North American OCTG and line pipe market grew by about 8% in 2008. Driven by strong demand, prices in these segments showed resilience despite the sharp drop in metal prices in the second half of the year. Compared to 2007, pipe prices in Russia and the US increased between 10% to 20 % and 70% to 80% respectively, depending on the type of pipe.”
TMK added that “Favorable raw material prices in the second half of the year partly offset the negative effects of the global financial crisis and weakening demand in the seamless and welded industrial pipe segments. Compared to the third quarter of 2008, the Russian industrial pipe market fell by 50% in the fourth quarter with prices falling 15% from their August peak.”
TMK release also said that “With its strong focus on the oil and gas industry, TMK fared better than other companies in the pipe and metallurgical sector as the industrial pipe market deteriorated in the second half of the year. As a result, TMK expects to once again improve its year-on-year financial performance. For 2008, consolidated revenues are expected to be about USD 5.8 billion while 2008 EBITDA adjusted for FX changes and non-cash items is to exceed USD 1 billion.”
As mentioned, 2008 was a year of significant change for TMK. The successful completion of major investment projects significantly broadened the Company’s product mix and strengthened its market positions in Russia and internationally. TMK further expanded geographically as it entered the US pipe market, accounting for almost half of global demand, with the acquisition of IPSCO production assets. At the same time, TMK continued to develop its premium class product offering and was awarded a series of supply contracts from oil and gas majors, further evidence to the progress realized in this high-tech product segment.
Kremikovtzi workers call off protests amidst new round of talks - 04 Feb 2009 It is reported that the trade unions have decided to call off the workers' protests over the lack of a final decision on the new investor of the Kremikovtzi steel mill.
Mr Lyudmil Pavlov leader of Podkrepa Labor Confederation announced the news in an interview for the Darik Radio saying that the decision to call off the planned strike was made after a 4 hour meeting with the Ministry of Economy. The syndicates' decision to put off any protests is motivated by the fact that final meetings with the two main bidders for Kremikovtzi are still to take place.
Representatives of the Ukrainian Smart Group are expected to meet with Bulgaria's ministry of economy, whereas the Brazilian company CSN is supposed to hold talks with the ministry.
The Podkrepa unionists and their colleagues from the Confederation of Independent Bulgarian Syndicates are still going to meet in order to set a new deadline for the selection of a new investor in Kremikovtzi. Unless the factory's bondholders keep it, the syndicates will be ready to stage mass protest rallies.
Mr Pavlov said that "We hope to be invited to these meetings as well. And we also hope that fresh supplies of raw materials will be brought to Kremikovtzi by the end of the week. The right decision can only be made after all options are finally put on the table."
It may be noted that the Kremikovtzi workers have not been paid since October 2008.
(Sourced from www.novinite.com)
ThyssenKrupp Elevator Architecture Award - 04 Feb 2009 It is reported that 4,651 architects from 108 countries competing in ThyssenKrupp Elevator Architecture Award. The competition is held by ThyssenKrupp Elevator in collaboration with Dubai Municipality, under the auspices of the International Union of Architects. The top five countries for participation are Spain, France, Italy, United States and China, with over 100 teams registered each, while UAE and Egypt are in the top 10, with 85 and 94 teams, respectively.
The registration process for the ThyssenKrupp Elevator Architecture Award has confirmed the outstanding interest in this competition to propose a new Tall Emblem Structure in Za'abeel Park, to symbolize the new face of Dubai, while promoting tourism and other recreational, scientific and cultural activities.
Mr Javier del Pozo CEO of ThyssenKrupp Elevator Southern Europe, Africa & Middle East and also president of the Jury of the Award said that "We are extremely pleased with the record number of registrations that the ThyssenKrupp Elevator Architecture Award has attracted this year. We are thrilled with working with Dubai Municipality and hosting the competition in this city. We knew immediately that the distinct international reputation of Dubai would fuel this Architecture Award."
Mr Hussain Nasser Lootah director general of Dubai Municipality said that "Launching an international competition is a successful way of attracting international talents and adds on world class design ideas for the city of Dubai. It is important for us to continue promoting public awareness of good design and show what architects can do for our community. This competition stimulated enormous interest and we are looking forward to the exciting and creative design solutions it will offer."
The deadline for posting the submissions to Dubai was January 31st 2008. Following this, a jury of renowned architects from seven countries and business professionals will review the proposals submitted and select the best winning Designs for awards. The winners are expected to be announced in May 2009.
The Architecture Award was established in 1988 by ThyssenKrupp Elevator as a way to engage professionals in producing outstanding commercial, corporate, institutional, and community architectural design work at international scale. The 11th edition is held for the first time in the Middle East, previous editions were hosted in major cities in Europe.
(Sourced from www.ameinfo.com)
AK Steel announces March 2009 surcharges for electrical steel - 04 Feb 2009 AK Steel Holding Corporation has advised its customers that USD 165 per ton surcharge will be added to invoices for electrical steel products shipped in March 2009.
AK Steel's surcharges are based on reported prices for raw materials and energy used to manufacture the products, with the January 2009 purchase cost used to determine the March 2009 surcharges.
Chinese steel production resumption favors coking industry - 04 Feb 2009 China Mining reported that China's latest effort in revitalizing the steel and automobile industries will help domestic steel industry resume stable production and thus stimulate a rally in the demand for coke. Meanwhile, the internal rectification also favors its healthy development of the coke industry.
Facing the sluggishness of domestic coking industry, Chinese government and coking industry associations have carried out a series of policies to adjust coke production and distribution, which to certain extent eases the coke oversupply in domestic market. All these measures are believed to promote the recovery of coking industry.
Statistics show that some 90% of domestic coke is consumed for iron and steel smelting. The slowing world economy and gloomy real estate and automobile industries in 2008 sharply shrank the demand for steel in domestic market.
In 2008, coke demand decrease for 6 consecutive months since June and came at 22.0154 million tonnes in November down by 3.11% or 706,700 tonnes on months and down by 22.16% or 6.2682 million tonnes on year. Meanwhile, coke price surged from CNY 1,750 per tonne at the beginning of the year to CNY 3,000 per tonne in late July, but took a downturn since August and plunged to CNY 1,700 per tonne at present.
Accordingly, the profit of coking enterprises decreased along with the weakening demand from downstream sectors, overproduction capacity and declining coke price. Some coking enterprises even incurred great losses in 2008.
According to Mr Zhang Gangfeng, general secretary of Shanxi Coking Industry Association, the entire coking industry in Shanxi province suffered a total loss of CNY 3 billion in September to October of 2008.
Macroeconomic indicators - Russia to have nearly zero growth in 2009 - 04 Feb 2009 Xinhua cited Mr Alexei Kudrin deputy PM and Finance Minister of Russia as saying that Russian’s economic growth would be close to zero in 2009 due to the global financial crisis.
Mr Kudrin said that "Our economic growth will most likely be close to zero and the situation to a great extent will depend on our own measures."
He said that Russia's budgetary revenues in 2009 could decline from RUB 10.9 trillion to RUB 6.5 trillion amid the financial meltdown.
Mr Igor Shuvalov first deputy PM of Russian said last Friday in the State Duma that the country's economic situation will be fairly harsh in 2009. He said that "The overall situation throughout 2009 will be fairly harsh. That does not mean that we expect the situation to be out of our control. Russia should change the structure of its economy to get through the crisis with minimum losses.”
According to preliminary data from the Economic Development Ministry, Russia's gross domestic product grew slightly less than 6% in 2008.
The Russian economy experienced tremendous challenges as it moved from a centrally planned economy to a free market system since the fall of the Soviet Union. However, the country appeared to have solved the difficulties well as its GDP growth rate reached 8.1% in 2007. But its resource driven economy has been hit by the dramatic fall in world oil prices since last year and is confronting the negatives of the current financial crisis.
(Sourced from Xinhua.com)
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