| Price Index - India | | | | 05-Mar | 04-Mar | Change | | ILPPI | 6688 | 6701 | -13 | | IFPPI | 6658 | 6656 | +2 | | INDSPI | 6674 | 6680 | -6 | | What is it? | | Poll Results | | Billet prices would go below USD 300 CNF? | | Yes | 55% | | No | 38% | | Can't Say | 7% | | View Current Poll | | Currency | | AUD | 1.5557 | | BRL | 2.3746 | | CAD | 1.2805 | | CNY | 6.8298 | | EUR | 0.7945 | | GBP | 0.7070 | | INR | 51.7414 | | JPY | 99.0379 | | RUB | 35.7850 | | USD | 1.0000 | | ZAR | 10.4576 | | View Current Currency | | Metal Rates Cash Seller & Settlement | | Zn | USD 1186 | | | Ni | USD 9780 | | | Sn | USD 11095 | | | Al | USD 1301 | | | Cu | USD 3640 | | | View Current Metal Rates | | Steel Futures | | NCDEX | 23900 (19-Dec) | INR | 0 |  | | DGCX | 448 (04-Mar) | USD | 0 | | | LME-M | 290 (04-Mar) | USD | 0 | | | LME-F | 300 (04-Mar) | USD | 0 | | | NCDEX :
NCDEX Mild Steel Ingot Future Closing Price DGCX :
Dubai Steel Rebar Futures Closing Prices LME-M :
LME Steel Billet Future Buyer Prices (Mediterranean) LME-F :
LME Steel Billet Future Buyer Prices
(Far East) | | | | Others
Indian steel imports dip by 16% in 11 months - 06 Mar 2009 It is reported that India’s finished steel imports totaled 0.51 million tonne in January 2009 down by 34% in from 7.7 million in January 2009 and up by 60% MoM from 0.32 million tonne in December 2008.
As per steel ministry’s Joint Planning Committee data, finished steel imports for the April to January 2009 period stood at 5.32 million tonne down by 15.5% YoY.
Welspun appoints ThyssenKrupp Mannex as distributor in Europe - 06 Mar 2009 ThyssenKrupp Mannex GmbH has been appointed by Welspun Gujarat Stahl Rohren Ltd, one of the leading large diameter pipe companies in the world, as distributor for large diameter pipes, welded line pipes and bends in Europe.
Hans-Jürgen Pietzsch member of the executive board of ThyssenKrupp Mannex said that “For us this outstanding appointment represents a major milestone in our pipe and tube business. Since its incorporation in 1995, Welspun has been approved as vendor by numerous international clients and has gained a high reputation in the international energy transportation sector. The new agreement will allow us to supply our international customers on a very fast and high quality base.”
Welspun has pipe manufacturing facilities in Gujarat, India and Arkansas, USA and also as part of its upward integration project, the Company has set up a 1.5 million tonne per annum Steckel plate cum coil mill which is capable to make plates up to 4.5 meters wide.
ThyssenKrupp Mannex is an internationally operating service company. The range of products includes pipes and pipe accessories, rolled steel, trading in new and used industrial plants, as well as structural elements for offshore and marine applications. Tailored services including financing and logistics round off the program
Increase in flat products counterbalances dip in long product prices - 06 Mar 2009 The Indian domestic Steel Price Index remained unchanged on March 5th 2009. The Indian Long Product Price Index ILPPI dropped by 21 points whereas Indian Flat Product Price Index IFPPI rose by 24 points. The overall Indian Steel Price Index INDSPI remained unchanged.
| Class | 04-Mar | 05-Mar | Change
| | ILPPI | 6709 | 6688 | -21
| | IFPPI | 6634 | 6658 | 24
| | INDSPI | 6674 | 6674 | 0
| | | | |
ILPPI - Indian Long Product Price Index
IFPPI - Indian Flat Product Price Index
INDSPI - Indian Steel Price Index
Long Products:
| Category | 04-Mar | 05-Mar | Change
| | PI - TMT | 6510 | 6466 | -43
| | PI - WRC | 7163 | 7186 | 22
| | PI - Angle | 6367 | 6301 | -66
| | PI - Channel | 6406 | 6341 | -65
| | PI - Joist | 5906 | 5855 | -50
| | | | |
Flat Products:
| Category | 04-Mar | 05-Mar | Change
| | PI - Narrow Plates | 6279 | 6293 | 13
| | PI - Wide Plates | 6705 | 6719 | 14
| | PI - Hot Rolled | 6458 | 6483 | 26
| | PI - Cold Rolled | 7203 | 7222 | 19
| | PI - Galvanized | 6885 | 6931 | 47
| | | | |
To know more about these indices please visit
http://steelprices-india.com/spi_services/spi.html
To know exact prevailing steel prices in India in 22 locations 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)
JSW Steel posts 8.5% YoY growth in crude steel production - 06 Mar 2009 JSW Steel Limited reported a growth of 8.5% in crude steel production in February 2009 compared to that of corresponding month in the last fiscal year. This includes the trial production of 18,262 tonne from recently commissioned largest Blast Furnace in February 2009.
The break-up of production is as below
| Product | Feb’09 | Feb’08 | Change
| | Crude Steel | 3.31 | 3.05 | 8.50%
| | Rolled Products : Flat | 2.57 | 2.48 | 3.90%
| | Rolled Products : Long | 0.43 | 0.26 | 66.40%
| | | | |
In tonnes
It has also shown a sequential growth of 3% in crude steel production over January 2009. JSW Steel commissioned the expansion project at Vijayanagar works in February 2009 expanding its capacity from 3.8 million tonne per annum to 6.8 million tonne per annum. This unit is under trial production.
In recognition of its continuous quality management initiatives, JSW Steel Limited, Vijayanagar Works was awarded Performance Excellence Trophy from IMC Ramkrishna Bajaj National Quality Awards 2008.
HDG prices at Mumbai increase - 06 Mar 2009 The flat product market was peaceful on March 5th 2009 after week of hectic rally, except for undulation at some of the locations.
The prices of galvanized products at Mumbai gained by 1.3%, as one of the steel major reduced the discount by INR 500 per tonne.
Up swing in flat product prices is also reported at Ludhiana.
To know exact prevailing steel prices in India in 22 locations 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)
SAIL expects global steel prices to soften - 06 Mar 2009 Steel Authority of India Ltd expects steel prices to soften further as new contracts for raw materials are finalized at lower prices.
According to Mr SK Roongta chairman of SAIL in an interview to the CNBC TV18 channel said that "Globally, steel prices in last fortnight have eased to varying degrees in different markets. As new raw material prices get factored, in totality it may have some kind of downward bias in terms of prices going forward.”
He added that "There will be a substantial reduction when 2009-10 raw material contracts are concluded.”
Mr Roongta however ruled out major price correction in the next 1 to 2 months.
(Sourced from CNBC TV18)
Effect of excise duty reduction on Indian domestic steel prices - 06 Mar 2009 The Indian Steel Prices have shown peculiar resilience over last one month, which defies all rationale as globally the steel industry is sinking deeper under acute recession, which has made the demand from end user segments very sluggish.
The seeds of revival in Indian domestic steel prices were sown about a month back when the buyers started feeling the pinch of shortage resultant of production pruning by steel majors and the revival is still continuing. (Ref STT 04/03/09: Update on HR domestic and import scenario in India).
Post February 25th 2009, it was commonly perceived that the Indian government’s initiative of reduction in excise duty by 2% would bring relief to steel consumers in general.
But on analyzing the pricing pattern during this period, the reality seems to be different especially for products, which are sold in the market on basic prices plus excise duty and VAT. In fact due to constrained availability of HR, prices went up at Mumbai. However, the scenario for OEM sales was different, where the benefit was passed to the buyers.
Whereas for products like rebar, which is sold in the market on total price basis ie including excise duty and VAT, the Ed cut was reflected in the market prices by February 27th 2009.
Hot Rolled
Tube grade
2mm x 1250 mm
| Location | 24-Feb | 27-Feb | Change
| | Delhi | 29004 | 29004 | 0%
| | Kolkata | 27453 | 27453 | 0%
| | Mumbai | 28551 | 29102 | 2%
| | Chennai | 28750 | 28750 | 0%
| | | | |
Change is on February 27th as compared to Feburary 24th 2009
Price in INR per tonne, excluding ED and VAT
Source: www.steelprices-india.com
TMT
Fe 415
12 mm
| Location | 24-Feb | 27-Feb | Change
| | Delhi | 32875 | 32366 | -2%
| | Kolkata | 32878 | 32216 | -2%
| | Mumbai | 31554 | 30957 | -2%
| | Chennai | 30800 | 30300 | -2%
| | | | |
Change is on February 27th as compared to Feburary 24th 2009
Price is in INR per tonne including ED and VAT
Source: www.steelprices-india.com
Readers may kindly note that prices have undergone many changes after February 27th 2009 and these levels are taken to show the short term effect of excise duty cut.
The positive price variance from 24th Feb’09 lucidly brings out that the steel majors did not pass on the benefit of excise duty reduction on to the retailers as the demand was firm and there was scope to pocket the excise differential.
The reasons for firming up of demand include the following
1. Unleashing of the pent up demand
2. March being the penultimate month before closure of financial year is characterized by the usual rush stock material by the traders
3. Approaching of peak consumption season March-June
The price increase will provide a welcome reprieve to the steel majors seething under the onslaught of economic recession without respite since last 7 months. The continuity of this buoyant phase depends on one hand on the abeyance of cheaper imports dormant for the time being despite having a distinct parity advantage probably due to lack of credit in the market and overall economic revival on the other.
To know exact prevailing steel prices in India in 22 locations 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)
Long product prices slides in West and North India - 06 Mar 2009 The hustle ended in whimper yesterday with a decline of TMT and Structural steel prices by 2% and 4% respectively in Mumbai.
The same trend was maintained in North with structural steel prices declining by 2% in Delhi.
Mumbai
| Item | Grade | Size | Change | %
| | TMT | Fe 415 | 12mm | -563 | -1.9%
| | ANGL | GR A | 65x6 | -1126 | -3.6%
| | CHNL | GR A | 75/100 | -1126 | -3.5%
| | JSTI | GR A | 250x125 | -1126 | -3.4%
| | | | | |
Change is on March 5th as compared to March 4th 2009
Change is in INR per tonne
Delhi
| CHNL | Grade | Size | Change | %
| | TMT | Fe 415 | 12mm | 0 | 0.0%
| | WRC | SWR14 | 5.5/6 | 0 | 0.0%
| | CHNL | GR A | 75/100 | -520 | -1.6%
| | JSTI | GR A | 250x125 | -520 | -1.6%
| | | | | |
Change is on March 5th as compared to March 4th 2009
Change is in INR per tonne
Ahmedabad
| Item | Grade | Size | Change | %
| | TMT | Fe 415 | 12mm | 0 | 0.0%
| | ANGL | GR A | 65x6 | -338 | -1.2%
| | CHNL | GR A | 75/100 | -338 | -1.2%
| | JSTI | GR A | 250x125 | 0 | 0.0%
| | | | | |
Change is on March 5th as compared to March 4th 2009
Change is in INR per tonne
Indore
| Item | Grade | Size | Change | %
| | TMT | Fe 415 | 12mm | -300 | -0.9%
| | ANGL | GR A | 65x6 | -400 | -1.3%
| | CHNL | GR A | 75/100 | -400 | -1.3%
| | JSTI | GR A | 250x125 | 0 | 0.0%
| | | | | |
Change is on March 5th as compared to March 4th 2009
Change is in INR per tonne
Mandi
| Item | Grade | Size | Change | %
| | ANGL | GR A | 65x6 | -208 | -0.6%
| | CHNL | GR A | 75/100 | -208 | -0.6%
| | JSTI | GR A | 250x125 | 0 | 0.0%
| | | | | |
Change is on March 5th as compared to March 4th 2009
Change is in INR per tonne
To know exact prevailing steel prices in India in 22 locations 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)
Stimulus plans - Indian auto sector recovers in February - 06 Mar 2009 BS reported that Maruti Suzuki, Hyundai Motors, TATA Motors, Mahindra & Mahindra and Honda Siel have notched up an impressive 18.78% growth in sales in February 2009. However, overall car sales fell by 0.5% in April to December 2008 period.
Domestic passenger car sales
| Company | Feb'08 | Feb'09 | Change
| | Maruti Suzuki | 59,311 | 70,625 | 19.0%
| | Hyundai | 14,600 | 21, 215 | 45.3%
| | Mahindra & Mahindra | 12,562 | 14,720 | 17.0%
| | General Motors | 5563 | 4921 | -11.5%
| | Honda | 3774 | 5579 | 48.0%
| | TATA Motors | 18766 | 19039 | 1.4%
| | total | 114576 | 136099 | 18.7%
| | | | |
Strong demand for the SX4 and DZire models helped Maruti Suzuki, the country’s largest passenger car maker, record an impressive 19% jump in sales in the domestic market, hitting a new record of 70,625 units in February. For the rest, the acceleration in sales in February was mostly led by new launches. For instance, Korean car maker Hyundai saw a huge 45% jump mainly on the back of i10 and i20 sale. New launches like Xylo also helped Mahindra & Mahindra record a 17% jump in sales. And thanks to the new Honda City model that was launched last month, Honda sales went up by 47.83% in February, hitting 5,579 units. Reflecting the troubles with its Detroit parent, General Motors, however, continued to see sales slide.
Auto executives, however, remain skeptical whether the momentum can be sustained for the rest of 2009. Mr RC Bhargava chairman of Maruti Suzuki said that “Currently, no one in the industry is celebrating. It is very difficult to say if the worst is over, considering the economic situation. What one can say is that we might not see a decline of sales now like we did previously."
Mr Bhargava said that "The government’s announcement of excise duty cut in December has also been a big booster.”
He added that exports of small cars to Europe have not really fallen and all this has pushed sales.
He expects easier repossession norms of cars by banks from customers who default on payments to encourage private banks to step up lending for car purchases.
(Sourced from Business standard)
Sponge iron and pencil ingot prices dips at Raipur - 06 Mar 2009 It is reported that the prices of melting scrap remained unchanged on March 5th 2009 but prices of sponge iron reduced by 3.4% at Raipur
On the other hand prices of pencil ingot remained under pressure at several important locations
| Location | Change | %
| | Mumbai | -200 | -0.9%
| | Mandi | 185 | 0.7%
| | Raipur | -444 | -2.1%
| | Kanpur | 0 | 0.0%
| | Kolkata | 0 | 0.0%
| | Ghaziabad | -100 | -0.4%
| | Muzzafarnagar | 0 | 0.0%
| | Ahmedabad | 0 | 0.0%
| | | |
Change is on March 5th as compared to March 4th 2009
Change is in INR per tonne
To know exact prevailing steel prices in India in 22 locations 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)
Steel Exchange India goes slow on production and expansion - 06 Mar 2009 BS reported that Steel Exchange India Limited expects to close the current fiscal with a turnover of INR 650 crore as against INR 614 crore during the last fiscal, an increase of 6%.
Mr B Suresh Kumar joint MD of SEIL said that as of December, the company achieved a turnover of INR 460 crore through steel trading and manufacturing.
Mr Suresh Kumar said that due to the slowdown, SEIL had stopped steel production at its Ravulapalem unit from last 6 months. It has a production capacity of about 100,000 tonne steel at its 3 units in the state.
Besides, it has deferred work on its proposed integrated steel plant at Kotthavalasa in Vizianagaram district due to sluggish demand for steel products.
He said that SEIL, which acquired a sick steel mill of Gold Star Alloy Limited last year, has already invested about INR 80 crore in it. Though it has lined up by INR 350 crore to convert this unit into a mini integrated steel mill, they would now invest in just starting rolling mill production.
Mr Suresh Kumar said that “By the end of July, we will invest another INR 70 crore for commencing production. The remaining work would be taken up after a couple of months.”
(Sourced from Business Standard)
RINL safety standards lauded - 06 Mar 2009 The Hindu reported that Mr DCS Varma joint chief inspector of Factories complimented the Visakhapatnam Steel Plant for the highest safety standards being followed.
Mr Varma at the 38th National Safety Day at the Training and Development Centre Auditorium of the plant on Wednesday said that safety rules, codes and standards that had been evolved after thorough research should be followed by everyone concerned.
Mr Y Manohar director personnel called for improved safety consciousness and following norms like wearing crash helmet. Mr Umesh Chandra director operations wanted everyone to strive for accident free working environment.
(Sourced from The Hindu)
Indian buyers eying cut in imported scrap prices - 06 Mar 2009 It is reported that the import price of Indian scrap of European origin is expected to be down by USD10 to USD 15 per tonne due to low demand. It is believed that the import price should be reduced to USD 250 to USD 255 per tonne.
(Sourced from YIEH.com)
Stimulus plans - Shipping ministry seeks INR 10,000 crore - 06 Mar 2009 BS reported that the Shipping Ministry has sought INR 10,000 crore loan from the Finance Ministry in view of the international credit crunch domestic shipping companies are facing in enhancing fleet.
Mr APVN Sarma Shipping secretary on the sidelines of the inauguration of the Kolkata campus of the Indian Maritime University said that "We have approached the Finance Ministry for a corpus of INR 10,000 crore." He said that the demand had been placed, but nothing is expected till the new government comes.
The Indian National Shipowners Association had sought the Center's help to create at least a USD 2 billion fund to provide soft loans as low cost money from abroad is increasingly drying up due to the global financial crunch.
According to sources, Indian shipping companies have laid out a plan for USD 20 billion in the next 4 years to acquire vessels to maintain their market share.
(Sourced from Business Standard)
Indian iron ore spot prices crash overshoots forecast for higher grades - 06 Mar 2009 The FOB East Coast prices of Indian iron ore have crashed during this week overshooting the short term forecast for some of the grades made by us on February 19th 2009, vide article “Indian iron ore spot FOB prices dip starting down spiral”, wherein we had said that the total reduction would be about 15% for higher grades and close to 20% for lower grades since February 10th 2009.
During this week, in absence of Chinese buyers, who are under pressure from falling domestic steel prices in China, the spot price of Indian iron ore of various grades crashed by 2% to 11% in a span of just 4 working days. The details are as under | Grade | Change | %
| | Fe 63.5/63% | -5 | -7%
| | Fe 63.5/62.5% | -4 | -6%
| | Fe 62 / 61% | -1 | -2%
| | Fe 61 / 60 % | -3 | -5%
| | Fe 59 / 58 % | -4 | -8%
| | Fe 58 / 57% | -5 | -11%
| | | |
Change is during March 5th and February 27th 2009
Change is in USD per tonne
This week’s reduction has brought down the spot prices of Indian iron ore down by 12% to 19% on March 5th 2009 for various grades as compare to prices prevailing on February 10th 2009, thus matching our forecast for lower grades like Fe 61 / 60 %, Fe 59 / 58 % and Fe 58 / 57% but overshooting for higher grades of Fe 63.5/63% and Fe 63.5/62.5%.| Grade | Forecast | Actual
| | Fe 63.5/63% | -11% | -15%
| | Fe 63.5/62.5% | -10% | -14%
| | Fe 61 / 60 % | -8% | -12%
| | Fe 59 / 58 % | -19% | -19%
| | Fe 58 / 57% | -18% | -18%
| | | |
Forecast was made on February 19th 2009
Considering the present situation, where hardly any transactions are taking place despite lowering of prices by Indian miners, we shall be releasing a new short term forecast soon.
To know exact levels, likely scenario, domestic iron ore spot prices at Bellary and Burbil and FOB East Coast spot prices subscribe to “Iron Ore Services” of www.steelprices-india.com by registering or sending a mail to admin@steelprices-india.com along with your full contact details. Please note that this is a paid service.
(Sourced from www.steelprices-india.com)
CIS billet prices go under USD 300 FOB levels - 06 Mar 2009 It is reported that the price of square billets at Black Sea are under tremendous pressure as buyers are pushing down there bids day by day.
On the last Friday, FOB Black Sea prices for 125-150 mm billets in 3-5 sp/ps grade were reported at USD 325 per tonne to USD 350 level down by USD 15 per tonne from the levels in earlier week.
But market reports during this week point to a gloomy scenario for CIS billet makers
1. Turkish buyers have reportedly booked some parcels at USD 310 per tonne to USD 315 per tonne FOB earlier this week.
2. It is also reported that the offer price of billet hit CFR USD 355 per tonne to USD 360 per tonne CFR SEA.
3. Mumbai market sources have reported that billets are being offered at USD 335 per tonne to USD 345 per tonne on CFR Mumbai basis depending on the parcel size.
Now reports are coming in that they have broken the barrier of USD 300 per tonne on FOB basis and market players are looking at USD 295 per tonne on FOB Black Sea basis.
In other words, the levels are inching towards price forecast of USD 270 per tonne FOB or USD 300 per tonne CFR levels made on February 28th 2009 vide article “FOB Black Sea billet prices under severe pressure from buyers”
To know exact prevailing FOB prices at Black Sea, as they change, 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)
Chinese plate offer goes down to EUR 350 FOT Ravenna in Italy - 06 Mar 2009 It is reported that a vessel has arrived at Ravenna with 10,000 tonnes of plates from Shougang and various customers are bidding EUR 350 per tonne FOT Ravenna Port.
This is substantially lower than prevailing import levels in Italy
HRP
S275JR
8-50x2500-3000
EUR 400 to EUR 420 per tonne on CIF FO basis + Extras
Payment by LC at 90 days from BL date
This is bound to put some pressure on Italian domestic plate re rollers as their levels are much higher
HRP
8-50x2500-3000 | Grade | Levels
| | S275JR | 450-470
| | S3355J2+N | 480-500
| | |
To keep tab on steel prices in Europe on daily basis, subscribe to services of www.steelprices-europe.com by registering or sending a mail to admin@steelprices-europe.com. Please note that this is a paid service.
(Sourced from www.steelprices-europe.com)
Rebar prices crash by 2.4% in Middle East - 06 Mar 2009 Under pressure from cheap offers from Ukraine the rebar prices slumped on weekend. This was reflected in the Middle East Long Product Price Index MLLPI, which lost 33 points or 0.8%.
| Class | 04-Mar | 05-Mar | Change | %
| | MLPPI | 4023 | 3990 | -33 | -0.8%
| | MFPPI | 5673 | 5673 | 0 | 0.0%
| | MEASPI | 4523 | 4500 | -23 | -0.5%
| | | | | |
MLPPI - Middle East Long Product Price Index
MFPPI - Middle East Flat Product Price Index
MAESPI - Middle East Steel Price Index
| Category | 04-Mar | 05-Mar | Change | %
| | PI – Rebar | 3443 | 3361 | -82 | -2.4%
| | PI - WRC | 4126 | 4126 | 0 | 0.0%
| | PI - Angle | 4807 | 4807 | 0 | 0.0%
| | PI – Structural | 4941 | 4941 | 0 | 0.0%
| | PI – HEA | 5518 | 5518 | 0 | 0.0%
| | | | | |
| Category | 04-Mar | 05-Mar | Change | %
| | PI - Narrow Plates | 5617 | 5617 | 0 | 0.0%
| | PI - Wide Plates | 7885 | 7885 | 0 | 0.0%
| | PI - Hot Rolled | 4307 | 4307 | 0 | 0.0%
| | PI - Cold Rolled | 4859 | 4859 | 0 | 0.0%
| | PI - Galvanized | 5353 | 5353 | 0 | 0.0%
| | | | | |
The price reduction for rebars has taken place across several locations in MEA.
Rebars
BS 4449 Grade 460B| Location | Currency | Change | in USD
| | Dubai | AED | 50 | 14
| | Abu Dhabi | AED | 50 | 14
| | Dammam | SAR | 50 | 13
| | Jeddah | SAR | 50 | 13
| | Bahrain | BHD | 5 | 13
| | Kuwait | KWD | 6 | 20
| | Qatar | QAR | 0 | 0
| | | | |
Change is per tonne
Change is on March 5th as compared to March 4th 2009
Market sources do not rule out of further dip in rebar prices next week as fall in international levels is putting huge pressure on domestic market and buyer are hesitant to make purchases.
To keep tab on steel prices in Middle East on daily basis, subscribe to services of www.steelprices-middleeast.com by registering or sending a mail to admin@steelprices-middleeast.com. Please note that this is a paid service.
(Sourced from www.steelprices-middleeast.com)
Production pruning -ThyssenKrupp to shut Duisburg BF - 06 Mar 2009 It is reported that ThyssenKrupp Steel AG plans to temporarily shut down one of four blast furnaces at its Duisburg facility due to weak demand from customers affected by the global economic downturn.
The report quoted a company spokesman as saying ThyssenKrupp Steel plans to shut down in mid March a blast furnace that is able to produce 4,500 tonnes of crude steel a day.
The spokesman said the shutdown would not result in any layoffs.
He added that “There were no plans at the moment to shutdown a second blast furnace of similar size and two other blast furnaces that are able to produce much more steel. Its Schwelgern 1 and 2 blast furnaces are its biggest, with a combined daily capacity of 22,000 tonnes of hot metal, while unit 8 ranks third at 5,500 tonnes.”
He also said that ThyssenKrupp has cut production and reduced working shifts in response to its smaller order book. Workers at the Duisburg plant that have been affected by reduced shifts will receive compensation for lost hours but would not be made permanently redundant. Workers will be entitled to compensation commensurate to 50% to 70% of their lost salary stemming from reduced hours.’
The compensation will be funded by a government mandated insurance program.
(Sourced from Dow Jones and Bloomberg)
BHP and Rio offer discount to Chinese steel mills - Report - 06 Mar 2009 Bloomberg reported that BHP Billiton Ltd and Rio Tinto Group, the world’s largest and third-biggest mining companies, offered Chinese customers price discounts to keep buying iron ore.
Mr Zhu Jimin chairman of Shougang said Chinese steelmakers have cut back on purchases and are using inventories rather than buying discounted material.
Mr Zhu on the sidelines of a meeting of the country’s legislative advisory body said that the two iron ore producers have offered to sell the material at spot prices, which are lower than benchmark contracted prices, until new benchmarks for the year are decided.
The Federation of Indian Mineral Industries said BHP Billiton and Rio are trying to maintain sales and production volumes as China’s economic slowdown hurts steelmakers.
(Sourced from Bloomberg)
China to boost steel exports with tariff adjustment - GAC - 06 Mar 2009 It is reported that regarding 2009 Tariff Implementation Plan that has taken effect since January 1st 2009, China's General Administration of Customs interpreted on March 4th that it is designed to lever up state economy with tariff adjustment, which is also expected to prop up foreign trade growth, optimize export commodities, support rural economy and high and new technologies development, accelerate transformation of the economic mode and promote the readjustment of industrial structure. Meanwhile, this plan also aims at relieving distresses that weaving, steel and chemical fertilizer industries are suffering.
GAC said China will continue to carry export duty elimination measures on heavy section steel and plates which has implemented since last December 1st and would be helpful to ease steelmakers' pressure and reduce their losses.
Besides, provisional duty will be introduced on some high energy-consuming commodities including wood pulp, coke, Ferroalloy, billet and partial steel products, while that on rolled steel and iron and steel pipe will be removed. At the same time, special export duty will be imposed on some fertilizers and raw materials, and provisional export duty will be increased on resource products that contain fluro-complex or Magnesium oxide. For products that have already paid export duty before January 1st 2009, the scope of way of trade covered by the tax will remain unchanged.
(Source: Securities Times)
Update on HRC scenario in Spain - 06 Mar 2009 It is reported that La Louviere, Duferco Mill in Belgium, is selling HRC to Spanish buyers at EUR 310 per tonne CIF FO basis for base with payment by LC at 90 days from BL date, which translates to about EUR 330 per tonne to EUR 335 per tonne effective.
The general price levels for import of HRC into Spain are reported as under
HRC
2-12x1000-1500 | Grade | Levels
| | S235JR | 320-330
| | S275JR | 325-335
| | |
In EUR per tonne
CIF FO Spain Effective
Payment by LC at 90 days from BL date
ArcelorMittal Spain is reported to have a stock of about 90,000 tonnes of HRC putting market under pressure.
The domestic price levels are reported to be as under
HRC
2-12x1000-1500| Grade | Levels
| | S235JR | 380-400
| | S275JR | 385-405
| | |
In EUR per tonne
To keep tab on steel prices in Europe on daily basis, subscribe to services of www.steelprices-europe.com by registering or sending a mail to admin@steelprices-europe.com. Please note that this is a paid service.
(Sourced from www.steelprices-europe.com)
The year of the no deal in mining sector - PWC - 06 Mar 2009 According to Mining Deals 2008, the annual review by PricewaterhouseCoopers of global mining sector M&A activity following two years of record M&A activity 2008 has turned out to be a year of extremes. The earlier part of the year followed the previous year’s buoyant pattern before plunging in a sudden dizzying vortex in the final months.
As well as being a year of very high deal activity, 2008 was also the year of what might have been. The potentially sector transforming bid by BHP Billiton grabbed the headlines but there were many other announced transactions that did not complete. The most significant surge in deal activity came in Brazil with total deal value in South America as a whole rising dramatically from USD 8.7 billion in 2007 to USD 22.8 billion in 2008. USD 17.7 billion of the region’s deal value was in Brazil up nearly fivefold from the USD 3.6 billion total Brazilian mining deal value of 2007.
A large increase was also seen in deals involving Chinese buyers with the value of deals rising fourfold from USD 6.7 billion in 2007 to USD 25.5 billion in 2008. This trend is continuing and in fact increasing in 2009 with deals announced in last February by Chinalco, China Minmetals and Hunan Valin.
Mr Kameswara Rao PricewaterhouseCoopers’ India leader for Energy said that “We see a unique environment that will reshape much of the sector’s ownership. The rapid decline in commodity and equity prices, combined with the financing constraints with the global credit crisis has left the sector polarized between the strong and the weak.”
He said that “Indian mining and user industries have an unprecedented window of opportunity to gain access to targets that might be denied to them in normal circumstances. The raw material supply constraints are likely to persist in the Indian market, and as Indian mining operators are more closely integrated with end use, the current lower valuations help then secure cheaper supplies for future. This may be just what the local brave hearts are looking for.”
Mining Deals 2008 highlights how the industry experienced a violent downward tailspin in the space of a few months, turning much of the deal making in the sector upside down:
1. Deal volumes plummeted 61% in the Q4 of 2008 towards levels last seen in 2005.
2 Many companies that had spent the earlier part of the year doing deals or resisting unwelcome overtures finished the year looking at overstretched balance sheets, preparing for write downs and welcoming back potential buyers with open arms.
Mr Kameswara Rao said that “We expect the constraints and contrasts in the market will create their own impetus for deal activity. Companies with required resources see in the current environment a buying opportunity although many may be content to bide their time for the right conditions to emerge. The state owned entities have the balance sheet strength but must work on their assessment and decision make processes.”
He said that “The boom period has attracted a number of small to mid cap mining companies for whom access to equity and debt has dried up. Many are at an entry or development stage and now risk survival. This is a good opportunity for the Government to further liberalize the domestic mining industry to grow it, attract investment and reduce costs for user industries such as in metals and energy.”
(Sourced from www.webnewswire.com)
MEPS sees further deterioration in steel prices - 06 Mar 2009 UK Based MEPS said that “Sentiment across all manufacturing sectors has deteriorated further. The prospect of a modest revival in steel demand of flat products during the early part of 2009 has turned sour. Prices for all flat products are therefore forecast to decline in the near term.”
MEPS said that “Demand is expected to fall further as many end users struggle under current economic conditions. Sales to the automotive and construction sectors will be considerably down on last year. The anticipated decline in steelmakers' raw material costs for 2009 is also forecast to add further negative pressure to transaction values in all regions as buyers try to recover some of the mills' reduced costs. However, output cuts should help to stabilize transaction values during the second quarter of 2009.”
MEPS said that “We now believe that a revival in transaction values for all flat products will be delayed until the second half of this year. Government stimulus packages should begin to filter through to increased steel demand by the third quarter. However, only a modest price recovery is envisaged as customers continue to struggle with financial restrictions. Additional new capacity in China, due on stream in the summer, could damage any upturn in Asian selling figures.”
MEPS added that “As a result of the extended poor economic situation, transaction values for long products are forecast to decline until late spring time. Falling scrap costs, coupled with poor demand from the construction sector, are likely to reverse the previously anticipated upturn in selling figures. Weakening domestic currencies in the EU and Asia will also push prices lower when converted into US dollars. However, transaction values should begin to stabilize during the second quarter of 2009 as production curbs bring the supply demand balance more into equilibrium. This should provide opportunities for steel prices to move upwards in the second half of 2009. However, end user consumption is likely to remain depressed throughout the year. Consequently, transaction values may not move to figures considerably above current levels before 2010.”
(Sourced from MEPS Steel Prices Online MEPS)
Recession reports - Rio Tinto economist sees rough year ahead - 06 Mar 2009 Reuters reported that Global miner Rio Tinto expects 2009 to be a rough year in terms of both prices and volumes for key commodities.
Mr Vivek Tulpule the firm's chief economist said that “A pickup is possible in 2010, though people should not be blind to the risk of a prolonged slowdown. Rio Tinto's major commodities are iron ore, aluminium and copper. 2009 will be a very rough year for both prices and volumes and probably also for construction. A lot of people I talk to in the mining industry are suffering a crisis of confidence they are putting a lot of projects on hold.”
He said that “Our view is that it will be a slow year or two. Copper, zinc, nickel and other industrial staples have lost 50% or more in value since last year's collapse in commodities markets. For iron ore, analysts predict benchmark prices could contract by as much as 60% this year due to sharp drops in orders from steel mills. Benefits flowing from China's giant economic stimulus package, largely directed at infrastructure were likely to show up midway through the year.”
Mr Tulpule said that "It will take to time to offset the negative impact of a downturn in exports and construction those areas have slowed very fast."
He said that “The collapse in commodities flowed from two crunches: the global credit crunch and a crunch in China that had been induced by its attempts to slow the economy last year because of concerns it was overheating. The effect that had was way beyond their own expectations and certainly beyond the expectations of anyone else. That deceleration had a profound effect on our markets as when growth decelerates inventories build up, and when you've got lots of inventory you suddenly decide not to build things and then you don't need to buy half as much copper and aluminium and iron ore.”
(Sourced from Reuters)
Chinese steel prices drop below costs - Shougang - 06 Mar 2009 Bloomberg reported that steel prices in China have dropped below output costs and a further decline may lead to production cuts.
Mr Zhu Jimin chairman of Shougang said on the sidelines of the National People’s Congress that “A 20% cut may be suitable for the current demand situation.”
Mr Zhu said “Steel prices may be near the bottom. They have fallen below production costs.”
The China Iron and Steel Association said benchmark steel prices in China have fallen 13% since February 4th after mills increased output on expectation of demand coming from the government’s CNY 4 trillion stimulus package. More than 60% of Chinese mills are losing money.
(Sourced from Bloomberg)
ThyssenKrupp may sell 3 units - Report - 06 Mar 2009 Bloomberg, citing people familiar with the situation, reported that Germany’s largest steelmaker ThyssenKrupp AG has kicked off the sale of three service units that may fetch as much as EUR 1 billion.
As per report “The three units being sold, including Safway, a US scaffolding company, Xervon, which maintains chemical and power plants and industrial service company ThyssenKrupp Industrieservice, may raise between EUR 500 million and EUR 1 billion.”
The report quoted the sources as saying that “The steelmaker sent out an invitation this week for bids, also known as a teaser.”
They added that “Hochtief AG and Bilfinger Berger AG, Germany’s two biggest construction companies, as well as CVC Capital Partners Ltd, KKR & Co and Bain Capital LLC may be among potential bidders.”
However the report added that “ThyssenKrupp, Hochtief and Bilfinger Berger spokesmen declined to comment. London based CVC and KKR, the buyout firm run by Henry Kravis and George Roberts, also declined to comment. Bain, based in Boston, couldn’t be immediately reached for comment.”
Iron ore vessels queuing at Chinese ports amid huge stocks piles - 06 Mar 2009 The Australian reported that outside China's biggest iron ore port, Rizhao, in Shandong province, 10 ships sit waiting to unload their cargo. Many of them came from the Pilbara carrying the iron ore that once fuelled a Chinese economy that drove the mining boom that, in turn, underwrote a cycle of super profits for Australia. But on the wharves of the bustling harbor, millions of tonnes of ore sit in stockpiles, yet to feed the once hungry mills.
Almost 7.2 million tonnes of ore was stocked at the port at the end of last month, a 200,000 tonne increase on a week earlier. As the queues of ships waiting to load in Australia have dwindled, about China's ports up to 75 ships, many of them carrying Australian ore, are waiting to dock and offload on to already choked stockpiles.
Analysts said the outlook for Chinese growth had changed for the worse in the past two weeks. After a period of steel mill destocking late last year, followed by a period of restocking this year, a truer picture of demand was emerging.
Mr Jim Lennon Macquarie Bank analyst said this week that 75 iron ore ships were waiting fully laden at anchor in China, up from 55 at the start of February, and the highest in more than two years. He said the fact that high port queues, indicating low availability of ships, had not buoyed freight rates was far from encouraging.
Analysts said there was little doubt the outlook for China had come off.
(Source from The Australian)
Slowdown signs - European car sales hit badly - 06 Mar 2009 It is reported that Italian car market went down by 24.5% YoY in February 2009 as compared with February 2008.
Car sales in Italy during January & February 2009 have been of 323,478 units against 452,475 in January & February 2008 down by 28.51% YoY.
Worst runners have been
1. Toyota with -41.6% YoY
2. Renault with -39.9% YoY
3. Peugeot with -29,9% YoY
However due to Government subvention, EUR 1500 for each new ordered car, the negative trend is decreasing. January 20009 sales was less by 32% YoY. Only Fiat has booked about 70,000 vehicles, twice than in January and 30% more than that in January 2008.
Also all other EU countries have established bail out for the car Industry.
1. Spain - EUR 1200 per car
2. France - EUR 1000 per car
3. Germany - EUR 2500 per car
4. Portugal - EUR 1000 per car
5. UK - EUR 1500 to EUR 2000 per car
Also some countries have introduced a decreased VAT for car sales.
To keep tab on steel prices in Europe on daily basis, subscribe to services of www.steelprices-europe.com by registering or sending a mail to admin@steelprices-europe.com. Please note that this is a paid service.
(Sourced from www.steelprices-europe.com)
Nine killed and 12 hurt in Sorenj coalmine blast in Pakistan - 06 Mar 2009 It is reported that at least nine miners were killed while 12 others sustained critical injuries after the coalmine collapsed due to a blast here in Sorenj Coal Field some 20 kilometers east of Quetta.
A police spokesman told APP that the blast took place around 11 AM when some 20 miners were engaged in extracting coal from a shallow seam. As a result, nine miners died on the spot while the rest sustained serious burn injuries and were admitted to BMC.
A large number of residents of the area, aid workers and rescue teams of Mines department rushed to the area soon after the incident and helped rescue the trapped miners.
(Sourced from APP)
Nisshin Steel increases stakes in Acerinox to 15% - 06 Mar 2009 Nisshin Steel, in an effort to enhance business relationships with Spanish stainless steel producer Acerinox SA, has acquired another 9,359,000 shares of the European concern and increased the ownership percentage to 15% from the previous 11.3%.
Nisshin Steel intends to make Acerinox an equity method affiliate effective as of the 4th quarter of fiscal 2008.
Chinese steel plate export market remains sluggish - 06 Mar 2009 It is reported that both export offer and domestic price for Chinese steel plate have kept weak and there have been less transaction.
On Shanghai market, commercial 16mm plate by Yingkou steel goes at CNY 3400 per tonne to CNY 3450 per tonne, down by CNY 200 per tonne from last Friday. That for commodity grade 14mm to 16mm plate by tier two steel producers has dropped by about CNY 150 per tonne to CNY 3300 per tonne.
CCSB 16mm ship plate price drop by CNY 50 per tonne to CNY 3800 per tonne. Q245R16 boiler plate price are down by CNY 70 per tonne to CNY 4130 per tonne.
Shanghai based trader complains that offers for commodity grade plate by tier two steel makers has tumbled to USD 530 per tonne to USD 550 per tonne FOB and low level is at about USD 520 per tonne to USD 530 per tonne FOB. Exporters say overseas buyers are bidding at a so low a level that is totally not workable. A European trader is even asking USD 450 per tonne to USD 460 per tonne FOB for commercial plate. It is really a pity that there is no chance."
(Sourced from.Mysteel.net)
Visit www.Mysteel.net for real time access to China steel news!
Turkish steel mills starting scrap purchase - 06 Mar 2009 Advanced steel reported that most of Turkish steel mills have started to purchase scrap in order to replenish their stock.
The market price of mixed scrap is about USD 220 per tonne to USD 223 per tonne CFR in Turkey.
On the other hand, the market price of hi quality scraps such as A3 scrap, P&S scrap is around USD 225 per tonne CFR.
Moreover, A3 scrap is CFR Turkey USD 220 per tonnes and for H1 & H2 mixed fragment scarp is CFR Turkey USD 233 per tonnes.
(Sourced from YIEH.com)
US steel imports in February drop by 31% - 06 Mar 2009 Based on the Commerce Department’s most recent Steel Import Monitoring and Analysis data, the American Iron and Steel Institute reported today that steel import permit applications for the month of February totaled 1,623,000 net tons. This was a 29% decrease from the 2,285,000 permit tons recorded in January 2009 and a 31% decrease from the January preliminary imports total of 2,343,000 net tons.
As per the SIMA data, Import permit tonnage for finished steel in February was 1,511,000 net tons a decrease of 29% from the preliminary imports total of 2,134,000 net tons in January. February 2009 total and finished steel import permit tons would annualize at 23,793,000 NT and 21,870,000 net tons down 26 and 16% respectively, from the 31,927,000 net tons and 25,956,000 net tons imported in 2008.
In February 2009, the largest finished steel import permit applications for offshore countries were
1. China 307,000 net tons
2. South Korea 148,000 net tons
3. Japan 102,000 net tons
4. Turkey 97,000 net tons
5. Brazil 59,000 net tons.
Cumulative tonnage from the top three offshore suppliers (China, South Korea and Japan) accounted for 37% of all finished imports in February, which was one third more than the amount from NAFTA countries. In spite of the lower import tonnage in February, finished steel import market share last month was well above the 10 year average, as China remained the largest foreign supplier of finished steel.
Major finished steel import products that registered large increases in February vs. the January preliminary include
1. Plates in Coils up by 54%
2. Standard Rails up by 19%
3. Reinforcing Bar up by 17 %
Mr Thomas J Gibson president & CEO of American Iron and Steel Institute said that “Even these lower import tonnages are substantial, because import market share is continuing at a historically high level and the domestic industry is operating at less than 50 % of capacity utilization for the third consecutive month. Many steel communities are suffering, with workers who have been laid off or seen their hours slashed. In this environment, we support Administration efforts to stimulate the economy and strictly enforce U.S. trade laws.”
India iron ore exports to slump in March - 06 Mar 2009 Bloomberg reported that India’s iron ore exports in March will slump as China reduces purchasing after stockpiles rose.
Mr Rahul Baldota president of the Federation of Indian Mineral Industries said that “Demand has dried up since the last week of February 2009. Indian iron ore prices have fallen by USD 15 a tonne from USD 85 a tonne in February 2009.
The federation said that the number of ships waiting to unload imported iron ore at ports in China surged 50% in February from a month earlier due to lower demand, Scotia Capital Inc wrote in a report this week. Indian exports in December and January had increased on higher Chinese purchase.
Mr Baldota said that “We are going back to the September to October levels. In February we may clock slightly higher sales but it’s a definite fall in March.”
According to the federation, in October, Indian iron ore exports slumped to 1.5 million tonne from 8 million tonne a year earlier.
The China Iron and Steel Association on February 23rd said that benchmark steel prices in China have fallen 12% since February 4 after mills increased output on expectation of demand coming from the government’s CNY 4 trillion stimulus package. More than 60% of Chinese mills are losing money now.
Mr Na Liu, a Toronto based analyst at Scotia Capital Inc, a unit of Bank of Nova Scotia, wrote in a report “Steel production had ramped up too quickly in response to higher prices, which were driven by expectations of an economic recovery. As a result, inventory rose sharply. The pullback of China’s steel market obviously has negative implications for iron ore.”
(Sourced from Bloomberg)
Baosteel sees 8% to 10% volume in exports - 06 Mar 2009 According to Mr Wang Jing general manager of Shanghai Baosteel, International Economic & Trading Corp Ltd steel export in 2009 is expected to take up 8% to 10% of Baosteel Group's total production.
The ratio includes capacity of all Baosteel Group's subsidiaries like Baoshan Iron & Steel, but excludes that of Ningbo Steel.
Mr Wang said the high raw materials costs still constrain Chinese steel industry's development, and domestic steelmakers should increase their pricing power in annual iron ore talks. He said that the weak collaboration mechanism between up-stream and down-stream enterprises has resulted in the panic undersell in the second half of last year, with price for steel related products falling 40%.
As for domestic enterprises quest for overseas prime resources, Mr Wang suggest them not to pay too much concerns about the debts their targets are laden. He said that China's steel industrial upgrading fares quite well at the moment, with spending in technical advancement/innovation also very big. Most steel mills have established modern enterprise system which is very important for their long term development.
(Sourced from.Mysteel.net)
Visit www.Mysteel.net for real time access to China steel news!
ECB cuts rate by 0.5% to reach lowest levels since Euro inception - 06 Mar 2009 It is reported that ECB has cut interest rate by 0.50%, now being 1.50%, the historical lowest since introduction of Euro.
However, Mr Trichet president of ECB was declaring that they could further interventions with new reductions.
Also UK Central Bank has cut interest rate by 0.50%. Now the interest rate in UK is at 0.50% also at historical minimum.
To keep tab on steel prices in Europe on daily basis, subscribe to services of www.steelprices-europe.com by registering or sending a mail to admin@steelprices-europe.com. Please note that this is a paid service.
(Sourced from www.steelprices-europe.com)
Taiyuan launches first overseas JV in Turkey - 06 Mar 2009 Taiyuan Iron & Steel (Group) Co Limited has formed a JV in Turkey to deal with local chrome ore mining.
Taiyuan Steel is the first shareholder, controlling 37.2% of the new company and the other two shareholders are Shanxi Jizhong Wanbang Industrial Trade Co Limited and Turkey CVK Group Corporation.
The new JV is the first foreign company of Taiyuan Steel, and its foundation indicates the steelmaker has made a breakthrough in its multi investment and operating risk controlling.
ABB to help improve energy efficiency for steel plants in the Gulf Region - 06 Mar 2009 Communiqué de presse reported that ABB has received orders of around USD 16 million to install flexible AC transmission systems for two steel plants in the Gulf Region. The installations in Kuwait and UAE and are expected to be operational in 2010.
The contract was awarded by Danieli, the Italian manufacturer of electric arc furnaces for steel manufacturing.
Mr Per Haugland head of the Grid Systems business within ABB’s Power Systems division said that "This solution will help enhance production through improved power quality and at the same time reduce the energy consumption needed to produce the steel. Each installation will help stabilize the voltage feeding an electric arc furnace and mitigates electric disturbances emanating from the steel making process.”
Steel makers increase the rating of the electrical arc furnace to boost production, but are often hampered by poor and insufficient power supply. ABB’s SVC Light technology offers reactive power compensation with special attention to weak networks with severe voltage support problems. SVC Light can be connected directly to the furnace bus without an intermediate transformer.
Port Hedland ships 12.2 million tonnes iron Ore in February - 06 Mar 2009 Morningstar reported that the Port Hedland Port Authority exported 12.2 million tonnes of iron ore in February.
According to the Authority data, a 10.5% decrease on the previous month. The latest total compares with 13.63 million tonnes exported in January. The Authority didn't provide any further breakdown of the figures, which collate monthly iron ore shipment data from major port user BHP Billiton Limited, along with new entrants Fortescue Metals Group Limited.
The sharp decline suggests that Port Hedland shipments are falling in line with slower demand from global steelmakers, due to the economic crisis. Up to now, BHP has said that it doesn't plan to scale back its Western Australian mine production, with any tonnes surplus to contract requirements to be sold into the spot market. At the peak of the China driven boom, in June 2008, BHP alone shipped 12.26 million tonnes out of Port Hedland.
(Sourced from www.morningstar.com)
Maaden inks 2 pacts with Rio Tinto Alcan for aluminium project - 06 Mar 2009 It is reported that Saudi Arabian Mining Company has signed two agreements including a technology transfer deal with the Rio Tinto Alcan as part of its mine to metal aluminium project.
Under the USD 10.5 billion scheme, Maaden will refine and smelt bauxite ore mined in Zubairah, in Qassim province, at its planned Ras al Zour complex.
Rio Tinto Alcan said that it will provide Maaden with its bespoke smelting technology. The alumina refinery will have a capacity of 1.6 million tonnes per year, while the smelter will have an initial capacity of 720,000 tonnes per year of aluminium. Commercial production is penciled in for early 2012 and more than 70% of the plant's output is intended for export.
Under the terms of the new co operation agreement, Rio Tinto Alcan will offer various types of support including technical services, secondment of key personnel, research and development assistance, management services and aluminium off take support. Maaden will involve Rio Tinto Alcan in the procurement and supply of alumina and other raw materials.
Maaden and Rio Tinto Alcan recently altered the scope of the project to build a captive power plant at the aluminium complex. Maaden originally agreed to undertake the project with Alcan, but the Canadian firm was taken over by Rio Tinto in 2007.
The global financial crisis and plummeting commodity prices have recently thrown Maaden's partnership with Rio Tinto Alcan into doubt. In early December, Rio Tinto announced it was shedding 14,000 jobs worldwide and would slash investment budgets for 2009 in a bid to rein in debt.
(Sourced fro MEED)
Recession reports - IMF sees crisis shifting to poor countries - 06 Mar 2009 International Monetary Fund has warned that the global financial crisis had shifted to the world's poorest nations and 22 countries may need as much as USD 25 billion in additional funding in 2009 to cope with the downturn. It added that, based on its projections, the 22 countries could need up to USD 140 billion if global conditions were to deteriorate sharply.
Mr Dominique Strauss Kahn MD of IMF said that "I foresee mounting problems for developing countries, calling it the third wave of the crisis, which has spread from financial and credit markets into the consumer economy. I'm expecting a number of new or scaled-up loan agreements will appear very soon."
Under current IMF projections, a total balance of payments shock in 38 developing countries could amount to around USD 165 billion and increase to as much as USD 216 billion under a worst case scenario. The IMF said that reserves in the 22 countries are expected to fall below three months of imports with losses amounting to 25 billion, equivalent to about 80% of annual aid to poor countries over the past five years.
In addition, the IMF has identified 26 countries that are highly vulnerable to the crisis but may not immediately need additional financing. Among the 26 countries are Zambia, Vietnam, Angola, Ghana, Burundi, Ivory Coast, Haiti, Honduras, Liberia, Nigeria, Mongolia, Moldova, Papua New Guinea, Sudan, Albania and Kyrgyzstan.
(Sourced from www.financialexpress.com)
RBCT coal exports in February up by 2.4% YoY - 06 Mar 2009 Bloomberg reported that South Africa’s Richards Bay Coal Terminal shipped 2.4% more coal in February than in the same month a year earlier. The terminal on South Africa’s northeast coast shipped 5.2 million tonnes of the fuel, compared with 5.08 million tonnes a year earlier and 4.12 million tonnes in January.
According to Petersfield, the terminal received 5.32 million tonnes of coal by rail last month and had stocks of 3.06 million tonnes at the end of February. Fifty eight ships were loaded during the month and 651 trains arrived at the facility. Coal shipped from the terminal declined 13% to an average of USD 59.60 a tonnes in the week ended February 27th 2009 compared with a week earlier. That’s the lowest level since July 27th 2007.
Richards Bay Coal is owned by South Africa’s largest coal exporters, including Anglo American Plc, BHP Billiton Limited and Xstrata Plc. While it is the world’s biggest coal export terminal, Australia’s Newcastle port ships more of the fuel from two terminals.
(Sourced from Bloomberg)
Chinese capacity utilization increases depresses steel prices - 06 Mar 2009 According to the Latest figures, the Chinese steel price index has dropped to 103.69 following a three week fall starting in February the price has retreated to the same level as in last November and the long product price also unexpectedly declined
The previous rebound was attributed to destocking from production cuts of the steelmakers, which in turn pushed up the price and stimulated operation to resume. As a result, on the one hand, the actual demand has not warmed up as most constructions have yet to start up, and on the other, the capacity utilization improved apace, greatly increasing the supply volume.
According to CISA figures, the steel capacity utilization rate rose to 86% in mid February from 70% last November, and the daily production reached 1.41 million tonnes up by 40% from the end of last year.
The steel price is checked accordingly on considerably increasing inventory at the traders.
Mysteel survey says flat and long products social inventory respectively reached 5.87 million tonnes and 5.46 million tonnes by last weekend, setting record highs, which could lead to under selling by the trading houses and thus add to the price downward pressure.
What's behind the recent price retreat and de stocking again is overcapacity, the paper said. Even if the demand would recover with startup of infrastructure projects, the steel industry is likely to wade into the circle from price up tick to production resumption and then price retreat and output cut again.
The market observes said the key lies in steelmakers' consolidation.
(Source: China Securities Journal)
European steel market will remain depressed in 2009 - Analyst - 06 Mar 2009 Reuters reported that Europe's steel market is enduring the weakest demand in decades and will remain depressed all of this year as there is no signs of an upturn in the construction and automotive sectors.
As per report, steel output in the European Union tumbled almost 46% YoY in January 2009 as companies ran down massive stocks and steelmakers had to slash production since late last year to cushion collapsing prices. World Steel Association data shows that the drop in Europe, though not quite as steep as the 51.2% fall in North America, was almost double the worldwide decline of 24%.
Mr Jim Lennon analyst at Macquarie Bank said that "It is a disaster. A combination of very heavy inventory de stocking plus the end user markets, auto sector, construction and white goods collapsing. At the moment there is no sign of recovery. February and March output will be weak as well and for the whole year we're definitely looking at a 20% plus downturn in European steel demand and that's one of the worst we have ever seen."
Mr Jeffrey Largey analyst at JP Morgan said that "We do not believe de stocking is coming to an end. We believe we will likely experience de-stocking for several more months. And even when inventories do appear low, we believe we will experience only a modest re stocking at best. It appears that European steel inventories still remain too high, given weak end market demand and uncertainty on the behalf of steel customers, so it is likely that capacity utilization rates will remain low through the end of the first quarter."
(Sourced from www.reuters.com)
China Railway clinches Saudi rail contract - 06 Mar 2009 Reuters reported that Saudi Arabia has awarded a SAR 6.79 billion infrastructure contract to a consortium including a unit of China Railway Construction Corporation for a railway to the kingdom's holy sites.
The contract, which covers ground and civil engineering works is the first of several to be awarded for the 450 kilometers high speed rail linking the Red Sea port city of Jeddah to Mecca and Medina, Islam's two holiest sites.
Contractors, at a signing ceremony in Saudi capital Riyadh, said that China railway construction subsidiary China Railway 18th Bureau Group and two Saudi firms, including Al Arrab Contracting Company are part of the winning consortium.
The transport ministry said that the project aims to ease the congestion on the road linking the two cities and reduce the duration of the road trip. Millions of Muslims travel to Saudi Arabia, the largest Arab economy each year to perform annual Islamic pilgrimage rituals. Saudi Arabia expects the number of worshippers traveling to Mecca and Medina to more than double to 14 million per year by 2030 from 5.5 million in 2005.
Mr Ibrahim al Assaf Saudi minister of Finance said that carrying at least 3 million people a year, the railway, which will be operated by the state controlled Saudi Railways Organization is due for completion by the end of 2012. He said that this project will benefit millions of Muslims from around the globe. Saudi Arabia has pledged to keep public spending high to sustain its economy through the global financial crisis that has sent much of the industrialized world into recession and forced it to project a budget deficit this year.
Mr Mansour al Maiman General Secretary of the fund said that Saudi Arabia will finance the project through the state owned Public Investment Fund.
According to Mr Ibrahim al Rajhi board member of al Rajhi Investment Group which is involved in leading the consortium's bids, China Railway's share of the infrastructure works deal is 21.25%. Al Arrab will get 63.75% of the contract's value and another local firm 15%.
He said that Alstom, French maker of TGV trains would bid for the locomotives tender, without saying when that would happen. A tender for five train stations would take place in the third or Q4 of 2009. The railway will include a station at Jeddah's airport, the main arrival point for Muslim worshipers.
The transport ministry said that the trains, which would travel at 320 kilometers per hour, would reduce by more than half to 2 hours the length of time it takes to travel by car from Jeddah to Medina, Islam's second holiest site. It would also cut to 30 minutes the time it takes to transport worshippers from Jeddah to Mecca, home to the Grand Mosque, Islam's holiest site.
(Sourced from Reuters)
MOL not canceling iron ore carriers - 06 Mar 2009 Lloyd's List reported that MITSUI OSK Lines denies that it is canceling ore carrier new buildings but is putting plans for further orders on hold.
A senior executive with Mitsui OSK Lines said that “We have not cancelled any new orders including those for VLOCs and capsizes,” He said that the company is maintaining all its orders for VLOCs and capsizes through to 2013 delivery.
In May last year, the Japanese shipowner announced plans to build 53 ore carriers ranging from Panamax through to VLOC size including 14 VLOCs and 27 capsizes with delivery by March 2014.
Mistui said that it had secured mid to long term contracts for 40% of the vessels and planned to increase this to around 60%. All the VLOCs were ordered in Japan, with two reported to have been contracted at Universal SB, five at Namura Zosensho and four at Imabari Shipbuilding Group. With a fleet of 125 Panamax and Capesize bulkers in May 2008, the company was aiming for a fleet of about 160 by 2014. Plans for any further fleet expansion have been put on hold given current market conditions.
He said that “It is extremely difficult at this moment to make any new orders.”
The ship owner has also been scrapping older ore carrier tonnage and the executive confirmed that it had already sent two older vessels to the breakers yard. There are reports that the company could scrap further four to five ore carriers but these could not be confirmed.
MOL has one of the highest numbers of orders for VLOCs, defined as a bulk carrier larger than 220,000 DWT. There are 108 of the giant bulk carriers on order of 32.3 million DWT included in the bloated Capesize order book of 826 vessels. There is rising concern that the global economic contraction will see demand for seaborne commodity transportation fall at the same time these new buildings are delivered into the market, keeping rates extremely low.
MOL reported that a 77% drop in net income for its Q3 ending December 13th 2008, with a profit of JPY 13.7 billion during the last quarter of 2008. The company revised its full year net income forecast ending March 13th 2009 by 33.3% to JPY 130 billion, compared to JPY 195 billion previously, citing deteriorating demand for raw materials such as iron ore, as one of the factors behind the revision.
(Sourced from www.lloydslist.com)
|
