| Price Index - India | | | | 19-Feb | 18-Feb | Change | | ILPPI | 6672 | 6655 | +17 | | IFPPI | 6549 | 6550 | -1 | | INDSPI | 6613 | 6605 | +8 | | What is it? | | Poll Results | | Buy America will lead to trade barriers by other nations? | | Yes | 65% | | No | 22% | | Can't Say | 13% | | View Current Poll | | Currency | | AUD | 1.5520 | | BRL | 2.3400 | | CAD | 1.2554 | | CNY | 6.8265 | | EUR | 0.7916 | | GBP | 0.6988 | | INR | 49.9301 | | JPY | 93.7933 | | RUB | 35.8193 | | USD | 1.0000 | | ZAR | 10.0871 | | View Current Currency | | Metal Rates Cash Seller & Settlement | | Zn | USD 1112 | | | Ni | USD 9855 | | | Sn | USD 11100 | | | Al | USD 1295 | | | Cu | USD 3290 | | | View Current Metal Rates | | Steel Futures | | NCDEX | 23900 (19-Dec) | INR | 0 |  | | DGCX | 448 (18-Feb) | USD | 0 | | | LME-M | 282 (18-Feb) | USD | -13 |  | | LME-F | 335 (18-Feb) | 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 Price Index reflects market stability - 20 Feb 2009 The Indian Steel Price Index exhibited nominal correction on February 19th 2009. The Indian Long Product Price Index (ILPPI) improved by 17 points whereas the Indian Flat Product Price Index (IFPPI) remained unchanged. The overall Indian Steel Price Index (INDSPI) crept up by 9 points.
Thus the prices seems to have bottomed out as there has not been any major dip in the last couple of days except for minor fluctuations due to transient local sentiments.
However this state is expected to last without any significant rally owing to political fundamentals rather than economics till the new government is in place whereby anticipation of policy changes can give some succor to the market.
| Class | 18-Feb | 19-Feb | Change
| | ILPPI | 6655 | 6672 | 17
| | IFPPI | 6550 | 6549 | 0
| | INDSPI | 6605 | 6613 | 9
| | | | |
ILPPI - Long Product Price Index
IFPPI - Flat Product Price Index
INDSPI - Indian Steel Price Index
Long Products:
| Category | 18-Feb | 19-Feb | Change
| | PI � TMT | 6438 | 6485 | 47
| | PI � WRC | 7129 | 7123 | -6
| | PI � Angle | 6286 | 6288 | 1
| | PI � Channel | 6331 | 6337 | 6
| | PI � Joist | 5887 | 5891 | 4
| | | | |
Change on February 19th is as compared to February 18th 2009
Flat Products:
| Category | 18-Feb | 19-Feb | Change
| | PI - Narrow Plates | 6164 | 6160 | -4
| | PI - Wide Plates | 6592 | 6592 | 0
| | PI - Hot Rolled | 6393 | 6393 | 0
| | PI - Cold Rolled | 7099 | 7099 | 0
| | PI � Galvanized | 6786 | 6786 | 0
| | | | |
Change on February 19th is as compared to February 18th 2009
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)
Indian steel production in January 2009 goes up by 2.5% - 20 Feb 2009 It is reported that Indian steel production witnessed 2.5% jump in January 2009 as demand for products in the construction sector went up slightly.
Mr PK Rastogi steel secretary said that increase in production for the month of January is a welcome sign given the fact that the domestic steel industry for October to December quarter witnessed 8% dip in production while the dip in consumption was 13%.
Mr Rastogi attributed the increase in production to stimulus packages and increased spending on infrastructure projects by the government, adding that he expects this trend to continue in February 2009 as well.
(Sourced from www.mydigitalfc.com)
Mumbai takes the lead in rally in long products - 20 Feb 2009 TMT prices improved in Mumbai, Chennai & Delhi by 1% to 3% on February 19th 2009 but structural steel prices declined in most locations except for a major appreciation by 2-3% in Mumbai.
The prices for TMT rallied in most locations owing to traders attempt to clear off stockpile by creating a positive sentiment in the market , but this not expected to last.
Mumbai
| Item | Grade | Size | Change | %
| | TMT | Fe 415 | 12mm | 574 | 1.9%
| | ANGL | GR A | 65x6 | 574 | 1.8%
| | CHNL | GR A | 75/100 | 861 | 2.7%
| | JSTI | GR A | 250x125 | 861 | 2.6%
| | | | | |
Change on February 19th is as compared to February 18th 2009
Change is in INR per tonne
Chennai
| Item | Grade | Size | Change | %
| | TMT | Fe 415 | 12mm | 800 | 2.7%
| | WRC | SWR14 | 5.5/6 | -100 | -0.4%
| | CHNL | GR A | 75/100 | 0 | 0.0%
| | JSTI | GR A | 250x125 | 0 | 0.0%
| | | | | |
Change on February 19th is as compared to February 18th 2009
Change is in INR per tonne
Delhi
| CHNL | Grade | Size | Change | %
| | TMT | Fe 415 | 12mm | 334 | 1.1%
| | WRC | SWR14 | 5.5/6 | 0 | 0.0%
| | CHNL | GR A | 75/100 | 0 | 0.0%
| | JSTI | GR A | 250x125 | -520 | -1.6%
| | | | | |
Change on February 19th is as compared to February 18th 2009
Change is in INR per tonne
Kanpur
| Item | Grade | Size | Change | %
| | TMT | Fe 415 | 12mm | 200 | 0.6%
| | ANGL | GR A | 65x6 | -200 | -0.6%
| | JSTI | GR A | 250x125 | -300 | -0.9%
| | WRC | SWR14 | 5.5/6 | 0 | 0.0%
| | | | | |
Change on February 19th is as compared to February 18th 2009
Change is in INR per tonne
Raipur
| Item | Grade | Size | Change | %
| | ANGL | GR A | 65x6 | -312 | -1.1%
| | CHNL | GR A | 75/100 | -312 | -1.0%
| | JSTI | GR A | 250x125 | -312 | -1.0%
| | WRC | SWR14 | 5.5/6 | 0 | 0.0%
| | | | | |
Change on February 19th is as compared to February 18th 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)
Opportunity for Indian steel makers in slow down - 20 Feb 2009 It is reported that steel makers have been called to leverage lower cost raw materials to overcome global down turn.
Mr SK Roongta chairman Steel Authority of India said that Indian industry must take advantage of the global financial crises and turn it into an opportunity to acquire latest technology at low cost and secure long term supply of raw material like iron ore and cooking coal at lower cost.
Mr Roongta said that “The country has natural resources, the skill base, technological acumen and the financial capability to make steel industry a center piece of Indian economic achievements.”
(Sourced from www.mydigitalfc.com)
RINL celebrates Formation Day - 20 Feb 2009 Rashtriya Ispat Nigam Limited, the flagship company of the Visakhapatnam Steel Plant, celebrated its Formation Day on Wednesday.
Mr PK Bishnoi CMD of RINL while addressing the RINL collective on the occasion expressed the confidence that the company would overcome the present economic crisis.
He recalled the determination of the RINL collective that had overcome crisis in the past.
CMD also complimented the winners of the Jawaharlal Nehru award, the highest individual achievement for recognition in the organization. He presented the awards to 28 executives and 37 non executives who excelled in 2007-08. ‘Srujan Vikas’ awards for suggestions and Agro-Forestry awards for preserving environment were also presented.
(Sourced from BL)
Scrap prices move up at Mumbai - 20 Feb 2009 Scrap prices improved in Mumbai by 3% on February 19th 2009.
Melting scrap
80:20
HMS
| Location | Change | %
| | Mumbai | 500 | 2.9%
| | | |
Change on February 19th is as compared to February 18th 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)
JSW Steel negotiating 66% cut in coking coal price - 20 Feb 2009 PTI reported that JSW Steel is negotiating a 66% lower rate for coking coal from global suppliers at USD 100 per tonne.
Mr Sajjan Jindall vice CMD of JSW Steel said that “Long term coking coal contracts are under negotiations. We are expecting close to USD 100 a tonne, which is 66% lower than the present contracted rates.''
As per report, JSW Steel has already negotiated a 43% cheaper rate for coking coal to be procured from global mining major Rio Tinto for the January to March quarter at USD 175 a tonne, against the contracted price of USD 305 a tonne.
Mr Jindal said that the long term coking coal contracts for the next fiscal would ease out the company's input cost pressure, which partially ate into its margins as it reported a net loss of INR 127.50 crore for the Q3 of 2008-09.
(Sourced from Press Trust of India)
HZL cuts zinc lead rates and hikes silver prices - 20 Feb 2009 It is reported that Hindustan Zinc today has cut prices of zinc, used in producing galvanized steel by INR 1,000 per tonne to INR 67,900 per tonne with effect from today.
However, it has lowered lead rates, used primarily by battery, rubber and paint industry by INR 1,300 a tonne to INR 68,900 a tonne.
A company circular said that the price revision is effective from today.
The firm, which started listing silver rates last month, hiked the rate of the metal by INR 1,680 a kilogram to INR 23,580 per kilogram from the February 12th 2009 level.
Meanwhile, silver is used in electrical contacts and conductors, mirrors and in catalysis of chemical reactions. Its amalgamations are used in dental fillings. The miner revises rates of its base metals mostly twice a weak in tandem with the price movement at the London Metal Exchange. Silver rates are reviewed almost daily.
Pencil ingot prices dip by 2% at Raipur - 20 Feb 2009 Pencil Ingot prices remained stable on February 19th 2009 except for Raipur where it dipped by 2%.
Pencil ingot
| Location | Change | %
| | Mumbai | 200 | 0.9%
| | Mandi | 0 | 0.0%
| | Raipur | -436 | -2.1%
| | Kanpur | 0 | 0.0%
| | Kolkata | 0 | 0.0%
| | Ghaziabad | 100 | 0.4%
| | Muzzafarnagar | -174 | -0.8%
| | Ahmedabad | 0 | 0.0%
| | | |
Change on February 19th is as compared to February 18th 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)
India Railways concerned over poor infrastructure at steel majors - 20 Feb 2009 PTI reported that SAIL and TATA Steel, two leading steel producers of the country, possess age old rail infrastructure to handle goods trains, which is resulting in a lot of inefficiency in the system.
The India Railways said during a recent meeting of an Inter-Ministerial Group to discuss infrastructure for steel projects that "The present arrangements of rail infrastructure in various steel plants such as SAIL and TATA are age old, generating a lot of inefficiency in the system."
Asking the Steel Ministry to look into modernization of all the existing rail infrastructure of steel plants, the Railways said the present arrangement is not only resulting in huge time loss but also its efficiency.
The Railway said that handling facilities for goods trains and infrastructure like yards were supposed to be taken care of by steel plants, adding that due to old infrastructure, the activities like materials loading and unloading was getting delayed.
According to the Railways, the current average detention period of rakes in most of the steel plants are in the range of eight and nine hours, which sometimes goes up to as high as 48 hours.
(Sourced from Press Trust of India)
Suzlon unit wins new order - 20 Feb 2009 PTI reported that a unit of Suzlon Energy, REpower Systems AG, bagged an order worth nearly EUR 2 billion from RWE Innogy GmbH for supplying 250 offshore wind turbines.
A company statement said that recently, REpower Systems AG and RWE Innogy GmbH has signed a framework agreement on the supply of 250 offshore wind energy units, with a potential volume of approximately EUR 2 billion.
(Sourced from Press Trust of India)
BHEL to invest INR 1,000 crores in locomotives segment - 20 Feb 2009 PTI reported that Bharat Heavy Electrical Ltd plans to invest about INR 1,000 crore in developing locomotive manufacturing facility.
Mr DK Ravi Kumar CMD of BHEL said that “We would be investing around INR 1,000 crore in locomotive business. We are in talks with Siemens, Alstom and Bombardier for creating electric locomotive manufacturing facility at Madhepura in Bihar for production of around 150 units per annum.”
BHEL has already signed a pact with General Electric for developing a facility to manufacture 100 to 120 diesel-electric locomotives every year at Marohwara in Bihar. In the venture, GE holds 51% stake, while Indian Railways and BHEL hold 26% and 23% stake, respectively.
The company, which has an order backlog of INR 120,000 crore to be completed in 42 months, expects a revenue growth of 25% to 30% this fiscal. Mr Ravi Kumar said that “Our revenues would grow at 25% to 30% this financial year and we are expected to see a double digit growth in profits.”
(Sourced from Press Trust of India)
BEML accepts LoI from Bangalore Metro - 20 Feb 2009 BL reported that BEML has signed the letter of acceptance for the supply of Bangalore Metro rail cars.
A consortium comprising the defense PSU, South Korea’s Rotem and Mitsubishi last week bagged the initial INR 1,672 crore order for 150 cars from Bangalore Metro Rail Corporation.
BEML said that it would begin supplying the cars from October 2010. Mr VRS Natarajan CMD of BEML’s and Mr N Sivasailam MD of BMRCL’s signed the LoA o n Tuesday. BMRCL may have a requirement of an additional 30 cars and another 63 subsequently.
(Sourced from Business Line)
Soma Enterprise bags Chennai Metro Rail order - 20 Feb 2009 BL reported that Soma Enterprise Ltd has been awarded a INR 199 crore contract in the Chennai Metro Rail Project, marking the start of the work on the project.
According to Chennai Metro Rail officials, Soma Enterprise will set up a 4.5 kilometer stretch of the elevated viaduct running along the 100 feet Inner Ring Road between Koyambedu and Ashok Nagar. The contract does not include the rail stations in this route, which would be tendered separately.
Officials said that the award of this contract marks the formal start of physical works on the INR 14,600 crore projects which is to be bid out in stages. The Tamil Nadu Chief Minister will soon lay the foundation stone for the project. The Centre gave the formal approval for the project on January 29th 2009 and work has started immediately.
According to sources, Soma Enterprise bagged the award in competition against infrastructure companies such as Gammon India, Simplex, L&T and a JV of Nagarjuna Construction and CCCL.
In line with the detailed project report compiled by the Delhi Metro Rail Corporation, one route will link Washermanpet in North Chennai, to Egmore, Teynampet and the Meenambakkam airport. A second route will link the Fort, with Anna Nagar, Vadapalani, Ashok Nagar, Alandur and St Thomas Mount. Of the total distance of 46.5 kilometer on both the routes, over 20 kilometer would be below the ground level and the rest on an elevated structure.
The alignment, which forms a triangle linking 3 key areas namely North Chennai, Thirumangalam to the west and Kathipara junction to the south through Poonamallee High Road, Inner Ring Road and Mount Road would be the first phase in the infrastructure project to alleviate traffic congestion.
(Sourced from Business Line)
ASCI team to assess VSP for PM trophy - 20 Feb 2009 A team from Administrative Staff College of India will be visiting Visakhapatnam Steel Plant on February 20th and 21st to assess the performance for the award of Prime Minister’s trophy for the assessment year 2007-08 for the ‘Best Integrated Steel Plant’.
The team comprises of Professor Mr Shah Vilas, Dr KN Viswanath, Mr GVR Sekhar and Mr JC Aylawadi.
During the course of their visit they would interact with CMD, Directors and other key functionaries to assess the performance of the organization with regard to ‘Leadership, Partnership & Resources and Policy & Strategy’ in Business Excellence and its concern for ‘Safety, Health, Environment’ and contribution of CSR activities apart from assessing the financial and operations performance.
Short term forecast for plate prices in Europe - 20 Feb 2009 The flat product market in Europe seems to be poised for a gloomy phase as there is no sign of revival of demand and buying is taking place in spurts.
The factors immediately affecting this depressed sentiment include
1) Ware houses and distributors are carrying sizeable high priced inventories. This material has been procured at a differential of Euro 300 per tonne to 500 per tonnes from the contemporary price levels.
Any attempt to liquidate this stock can be at the peril of bankruptcy. One of the ploy adopted is to procure new material on piecemeal basis and ease out the old stock at average price to minimize losses. However as per market information, a leading International trading house has started to get rid of its "old" plate inventory at several EU ports at a starting price of EUR 420 per tonne FOT.
But, till the time, old stock is in the pipe line recovery is far fetched.
2) Banks are reluctant to extend credit lines as they used to in past.
3) The demand from consuming segments is highly sluggish as the demand for their end products is dwindling
At present declared import prices are just nominal and based on prevailing offers from India and China.
Therefore, it is anticipated that prices are expected to reach its nadir in the next few months and following levels may be reached
Country Domestic Import Prediction | Country | Domestic | Import | Prediction
| | Italy | 460 | NA | 400
| | Spain | NA | 450-470 | 400-420
| | Germany | >500 | 470-480 | 440-450
| | | | |
In EUR per tonne
All prices are net to the final customer with following payment terms
A. Italy & Spain
1. Domestic prices are EXW or DDP with payment 90 days from delivery
2. Import prices are CIF FO with LC at 90 days from B/L date
B. Germany
1. Domestic prices are EXW or DDP with payment on the 15th of the following month
2. Import prices are CFR FO with open term payment at 30 days from date of arrival
This phase is likely to decimate several small players however the survivors might look up to some succor. Revival can be hoped only after summer holiday
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)
Vale posts record performance for 2008 - 20 Feb 2009 Companhia Vale do Rio Doce has reported a strong operational and financial performance in 2008, highlighted by several production, sales and financial records.
Eight production records for nickel, bauxite, alumina, copper, coal, cobalt, platinum group metals and precious metals, were achieved while eight products registered all time high volumes of shipments as under
1. Iron ore - 264 million tonnes
2. Nickel - 276,000 tonnes
3. Copper - 320,000 tonnes
4. Alumina - 4.2 million tonnes
5. Cobalt - 3,087 tonnes
6. Precious metals - 2.4 million troy ounces
7. Platinum group metals - 411,000 troy ounces
8. Coal - 4.1 million tonnes
The excellence in financial performance was reflected in the achievement of record revenues, operational profit, net earnings, cash generation, dividend distribution, and investment supported by a very strong balance sheet.
The main highlights of Vale’s performance in 2008 were
1. Record gross revenue of USD 38.5 billion up by 16.3% YoY
2. Record operational profit, as measured by adjusted EBIT of USD 15.7 billion up by 19.0% YoY
3. Operational margin, as measured by adjusted EBIT margin of 41.9% as against 40.9% in 2007
4. Record cash generation, as measured by adjusted EBITDA USD 19.0 billion in 2008 as compared to USD 15.8 billion of 2007
5. Record net earnings of USD 13.2 billion up by 11.9% YoY
6. Record dividend distribution in 2008 was USD 2.85 billion, equal to USD 0.56 per share, 52.0% above 2007
7. Record investment, excluding acquisitions, of USD 10.2 billion as against USD 7.6 billion in 2007
Corus and Elastron inaugurate Thessalonica service centre - 20 Feb 2009 Corus and Elastron, the Greek steel distributor and processor until recently called Kalpinis-Simos inaugurating a new joint venture service centre in northern Greece that will focus on strip and long products.
The 50:50 JV, TATA Elastron SA will serve the Greek, Balkan and other nearby markets. The service centre occupies a logistically well positioned site on recently acquired land in an industrial estate in Thessalonica.
As well as investing in the land and buildings, TATA Elastron has installed two new cut to length lines, a new slitting line, a cold saw and a shot-blasting machine.
Elastron operates a large strip and long products distribution business near Athens. At the same location it also runs two composite panel lines in a 50:50 JV with Corus’ Distribution & Building Systems (CD&BS) Division. Corus Distribution Europe, the partner in the Thessalonica JV, is part of this division.
Mr Adriaan Vollebergh MD of Corus Distribution Europe said that “It is very pleasing to be able to expand the value-adding partnership we have built up over the last ten years with Elastron. Corus and Elastron comprise a winning combination in the fast-growing markets of south-eastern Europe.”
Mr Athanasios Kalpinis MD of Elastron said that "The new venture will introduce a new level of service and customer satisfaction for steel products in northern Greece and neighbouring countries."
Chinese buyers for Indian iron ore vanish pushing prices down - 20 Feb 2009 It is reported that spot prices of iron ore fines FOB East Coat of India, have further weakened on February 19th 2009 for the second consecutive day in absence of buying by Chinese steel mills.
Anticipating major correction in he prices of Indian iron ore fines in coming days due to downturn in Chinese steel market, the exiting buyers have also withdrawn from the market putting immense pressure on prices.
The spot FOB East Coast prices of various grades of iron ores exhibited downward trend on February 19th 2009
| Grade | Change | %
| | Fe 63.5/63% | -2 | -3%
| | Fe 63.5/62.5% | -1 | -1%
| | Fe 62 / 61 % | -2 | -3%
| | Fe 61 / 60 % | -2 | -3%
| | Fe 59 / 58 % | -1 | -2%
| | Fe 58 / 57% | -1 | -2%
| | | |
Change is during February 19th and February 18th 2009
Change is in USD per tonne
The FOB prices for various grades of iron ore are likely to further come down by further 5% to 10% in short term to take the total reduction to about 10% for higher grades and close to 20% for lower grades since February 10th 2009.
You may like to see the changes in iron ore prices during February 2009 at the following article, which was published on February 18th 2009 and gives short term forecast
http://steelguru.com/news/index/2009/02/19/ODMyNDc%3D/Indian_iron_ore_spot_FOB_prices_dip_starting_down_spiral.html
To know exact levels, likely scenario, domestic iron ore spot prices at Bellary and Burbil 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)
Steel price downtrend in China to persist - Analyst - 20 Feb 2009 It is reported that Chinese steel prices have reversed the long-term uptrend and stepped downward course since last week. And many insiders think it its unlikely for the price downtrend to halt and move up in near term
By February 18th, medium plate and H-beam prices fell by CNY 20 per tonne to CNY 60 per tonne in Shanghai, with large-scale rebar, wire rod and high-speed wire rod falling CNY 100 per tonne in total, and round bar dropped CNY 30 per tonne to CNY 40 per tonne. While in Beijing, CR sheet also fell by CNY 100 per tonne from the previous days. And in Changzhou, price for construction steel dived by the same margin. Offers for all specs medium plate dipped CNY 50 per tonne yesterday in Tianjin.
In the mean time, some steel mills also revised down their ex-works prices. Yesterday, Tangshan Guofeng cut prices for common HR narrow strip by CNY 100 per tonne, with latest ex-works price for the product prevailing at CNY 3,280 per tonne. Xinxing Ductile Iron Pipe Co pulled down rebar prices by CNY 50 per tonne, and revised ex-works prices for 16mm to 25mm rebar in Hebei down to CNY 3,740 per tonne.
Shougang Hongye trimmed angel steel prices by CNY 200 per tonne in total, with latest ex-factory prices posting at CNY 3,710 per tonne. And according to industry source, totaling 17 types of steel products have reported price decline this week.
Mr Zheng Dong, analyst from CITIC Securities, told the newspaper in response to the consecutive steel price falls that "China's demand for steel has yet to pick up, and is not so optimistic as expected. Oversupply problem will also persist in short term. He said that steelmaker' have gotten some relief compared with last Aug and Sep after several months' price rise, and therefore, they need not to hike prices like what they did in earlier period to minimize losses, and start revising down ex-works prices. He also said products' inventory has increased from the previous week, which is set to weigh on steel prices downward.”
The slackening global steel prices also helped press down Chinese steel prices, since it blocked steel export from the country, some other analysts contended. Demand in global market is quite low and is unlikely to return to the previous level in short term. Excessive supply is set to stay in 2009 in the market. And figures released by customs on February 11th show that China shipped out 1.91 million tonnes of steel products in Jan, or USD 2.353 billion in value down by 1.26 million tonnes or USD 1.58 billion in value MoM.
(Sourced from.Mysteel.net)
Visit www.Mysteel.net for real time access to China steel news!
Gerdau Ameristeel posts net loss of USD 1.3 billion in Q4 - 20 Feb 2009 Gerdau Ameristeel Corporation reported a net loss of USD 1.3 billion for the three months ended December 31st 2008, in comparison to net income of USD 141.4 million for the three months ended December 31st 2007. The net loss for the three months ended December 31st 2008 includes a non cash goodwill impairment charge of USD 1.2 billion.
Excluding the goodwill impairment charge and the charge to write down the carrying value of investments as described below, the Non-GAAP Adjusted Net Loss was $70.8 million and the Non GAAP Adjusted Net Income was USD 718.0 million for the three months and year ended December 31st 2008, respectively.
EBITDA was USD 19.4 million for the three months ended December 31st 2008 and USD 1.5 billion for the year ended December 31st 2008, compared to EBITDA of USD 313.8 million for the three months ended December 31st 2007 and USD 1.0 billion for the year ended December 31, 2007. The USD 1.5 billion of EBITDA generated in 2008 represents a 50.0% increase over 2007 results and a record amount for the Company. Its net sales for the three months ended December 31, 2008 decreased 17.6% to USD 1.4 billion from USD 1.7 billion for the three months ended December 31st 2007. For the three months ended December 31st 2008, finished steel shipments decreased to 1.3 million tonnes a decrease of 829 thousand tons from the three months ended December 31st 2007, primarily as a result of the current global economic conditions. Average mill finished steel selling prices for the three months ended December 31st 2008 increased 31.1% over the level in this same period in 2007.
Net sales for the year ended December 31st 2008 increased 46.6% to USD 8.5 billion from USD 5.8 billion for the year ended December 31st 2007. For the year ended December 31st 2008, finished steel shipments increased to 8.3 million tonnes an increase of 769 thousand tons from the year ended December 31st 2007, primarily as a result of the full year inclusion of the Chaparral Steel operations which were acquired in September 2007. Additionally, average mill finished steel selling prices for the year ended December 31st 2008 increased 36.4% over those in 2007.
For the three months ended December 31st 2008, metal spread, the difference between mill selling prices and scrap raw material costs, was USD 636 per tonne an increase of USD 180 per tonne from the same period in 2007. Metal spreads increased significantly during the first nine months of 2008 in response to significant raw material price inflation and to strong global demand for long steel products, before retracting slightly in the fourth quarter of 2008. For the year ended December 31st 2008, metal spread was USD 544 per tonne an increase of USD 123 per tonne from 2007.
During the three months ended December 31st 2008, the Company completed the acquisitions of two scrap processors - Metro Recycling in Ontario, Canada and Sand Springs Metal Processors in Oklahoma.
Mr Mario Longhi president & CEO of Gerdau Ameristeel said that "We faced two very different periods during 2008. During the first nine months of the year we delivered EBITDA of USD 1.5 billion, while in the challenging slowdown of the world economy during the last quarter of the year, EBITDA decreased to USD 19.4 million. During this difficult time, we took decisive action to position ourselves for the current environment which included aggressive cost reductions. During the fourth quarter, our shipment rates exceeded our production rates which resulted in us reducing our investment in working capital and in the generation of USD 345 million of cash during this period, to end the year with good liquidity and a strong balance sheet.”
Iron ore price negotiations - Rio postpones Chinese talks - 20 Feb 2009 Caijing magazine quoted Mr Anthony Loo MD of Rio Tinot China as saying that Rio Tinto has postponed annual iron ore price negotiations with Chinese steel mills.
Mr Loo told Caijing magazine that "We want to wait for a while to monitor the market situation. We hope conditions will be more normal after a few months, allowing for better negotiation with our Chinese customers."
Mr Loo said that "Last year the iron ore talks only concluded at the end of May. And there's still some time until the end of May, so we certainly want to wait a little bit and examine the changing market situation before making any decisions.”
The negotiations on benchmark iron ore prices normally should end before April 1st 2009.
China to support high end steel export through incentives - 20 Feb 2009 It is reported that China, the world's largest steelmaking nation, plans to adjust the tax for steel exports and imports as part of a stimulus policy to support mills during the economic slowdown.
The draft plan would keep the export duty of 10% to 25% for low value-added steel products like pig iron, ferroalloy, billet, ingot, wire rod and rebar. However, Beijing intends to raise up tax rebate for higher-end steel exports in a bid to maintain the export share of Chinese products.
The plan also requires steel mills and industrial association to face up to intensifying trade frictions like anti-dumping, anti-subsidy allegations. Beijing hopes that steel export would continue to take up 15% of its total production.
Mr Xu Xiangchun senior analyst of Mysteel said moreover, tariff and value-added tax on steel imports would be reverted in a progressive way. Beijing would roll back the duty and VAT levied on steel imports for processing trade, which accounts for over half of China's total steel imports.
China's steel export started to slump from last August due to plunging overseas steel demand amid economic slowdown, with the shipment falling to 2.95 million tonnes in November from August 7.68 million tonnes.
(Sourced from.Mysteel.net)
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Slowdown signs - MMK sues car maker GAZ for late payments - 20 Feb 2009 AP reported that Magnitogorsk Iron and Steel Works announced that it has sued major car producer GAZ over late payments.
Ms Yelena Azovsteva spokeswoman of MMK told The Associated Press that the steelmaker filed two lawsuits worth a total of RUB 1 billion rubles against GAZ Group over late payments from 2008.
As both steelmakers and auto producers face a sharp slump in sales, companies are rushing to secure cash payments to protect themselves from the global financial turmoil. Russia's car industry has been one of the hardest-hit victims of the crisis. Car output in Russia dropped a massive 80% in January alone as major automakers halted production lines for extended holidays or suspended work due to supply shortages.
GAZ Group was no exception to the downturn seen in rest of the auto industry in Russia. Its major shareholder Oleg Deripaska ran massive debts and was forced to sell some of his assets. He is now facing a number of margin calls.
(Sourced from AP)
Argentinean January industrial output fell by 11.4% YoY - 20 Feb 2009 Dow Jones reported that Argentina's industrial production in January 2009 plunged by 11.4% YoY and was down by 5.2% MoM.
Fundación de Investigaciones Económicas Latinoamericanas said in a report that "Only aluminum production showed a significant gain, while all other production fell, particularly auto manufacturing."
The FIEL report shows an alarming deceleration and stands in stark contrast to official figures. In January 2009, national statistics agency INDEC reported December industrial production as up by 2.3% YoY while, FIEL reported a 12.5% YoY decline. Furthermore, INDEC reported a 2.2% MoM gain in December industrial production and FIEL said that industrial production in December fell by 8.4% MoM.
Merrill Lynch said that the INDEC report left markets incredulous. It added that "Indeed, INDEC results imply that industrial production excluding autos and metals would have grown a staggering 13% YoY in December, its fastest in five years. However, private indicators show Argentina's economic reality differs from that of INDEC, one that is much more connected to the global cycle. We believe partial reports and overall underlying trends reveal an even sharper slowdown. Indeed, we believe Argentina will likely enter a technical recession this quarter."
Local analysts have also expressed skepticism about the rosy figures produced by INDEC, particularly after the government released early data on December gross domestic product growth which showed a 7.4% YoY gain.
Mr Mariano Lamothe economist at Abeceb.com said of INDEC's latest figures that "If there were any doubts about the agency, there are even more now. To accurately calculate December growth, they needed to wait for more data to come in. They obviously released the December data early because they didn't like the way the November data looked."
(Sourced from www.dowjones.com)
Gloucester to buy Whitehaven Coal for AUD 545 million - 20 Feb 2009 Bloomberg reported that Gloucester Coal Ltd has agreed to acquire Whitehaven Coal Ltd for AUD 545 million in shares, adding five mines that supply power stations and a stake in an export terminal project.
Gloucester offered 1 share for every 2.45 Whitehaven shares and the deal is supported by both boards.
Mr Tony Haggarty MD of Whitehaven will initially head the renamed, combined company before being succeeded by Gloucester’s Mr Rob Lord.
Whitehaven operates the Tarrawonga, Werris Creek, Rocglen and Sunnyside thermal coal mines in New South Wales state. The combined company, based on 2008 figures, would produce about 4.5 million tonnes of coal annually from seven mines and have reserves of 190 million tonnes and resources of 922 million tonnes. Whitehaven also owns an 11% stake in the Newcastle Coal Infrastructure Group which is building a new export terminal at the harbor.
Mr Andy Hogendijk chairman of Gloucester and Mr John Conde chairman of Whitehaven in a joint statement said that “The two companies have complementary operating assets and development projects and the merged entity will be well positioned to deliver strong growth over the next five years.”
UBS AG is advising Gloucester. Grant Samuel & Associates Pty and Wilson HTM Investment Group are advising Whitehaven.
Corus and Salzgitter jointly develop new HSD grade steel - 20 Feb 2009 Corus and Salzgitter have announced their successful cooperation in the product development of High Strength & Ductility steels. The new HSD® grade will be developed for a variety of applications, in particular for components with complex geometrical structures combined with high-strength requirements.
Corus and Salzgitter also announce their intention to continue and intensify their cooperation product development in the area of HSD® steels based on high manganese content in the range of 15%. This cooperation agreement will be of significant benefit to customers in the automotive and other industries. It governs the scope of work for both companies in sharing complementary R&D expertise to develop and optimize these products.
The new HSD® grade will be developed for several applications, including sophisticated components for mechanical engineering applications. In the automotive sector substantial benefits can be achieved in mass reduction, improved crash resistance and by providing the automotive engineer with enhanced design freedom. This will also enhance future designs, such as electrical and hybrid architectures. Progress updates will be provided in the course of 2009.
Mr Hans Fischer member of board Salzgitter AG said that "Salzgitter is looking forward to continuing its very effective and synergy creating cooperation with Corus in the development of these outstanding innovative steel grades. HSD® steels will intensify the Salzgitter strategy to be a niche first class supplier of high quality steel products, meeting the market demands of the future. Next to the Automotive market, in which Salzgitter already has promising cooperation projects with key OEMs, the excellent properties of this product range also provide new and promising applications in related markets, such as engineering and transportation. Salzgitter plans to produce these HSD® steels using the Belt Strip Casting Technology to be erected for the production of these grades at our Peine works."
Mr Marjan Oudeman executive director at Corus Strip Products Division said that "Corus welcomes this great opportunity to work further with Salzgitter on the development of this new and innovative product range. HSD® steels represent a new era in material application for the automotive industry and will significantly contribute to the ever increasing requirements of our customers. Through this cooperation Corus is demonstrating its commitment to investing in new and innovative products. I am convinced that this alliance with Salzgitter is bringing about improved product offerings with a better value proposition for our customers. This is a positive step for both our companies, but the real winners are OEMs and developers who rely on our products. These new steels will help them to build lighter yet safer vehicles emitting lower volumes of CO2 and contributing to a greener environment."
It may be noted that Corus and Salzgitter have been working together since 2005 on identifying opportunities for the application of HSD® steels in selected market sectors. Good progress has been made in the last 4 years and program results are promising.
Indian domestic iron ore prices crash by up to 6% in Bellary again - 20 Feb 2009 Indian domestic iron ore prices continue to crash for the 2nd consecutive day on February 19th 2009 bringing down the prices by 9% to 10%.
Bellary | Product | Grade | Size | Change | %
| | Iron Ore Calibrate | Fe 65% | 10-40 | -100 | -4.3%
| | Iron Ore Calibrate | Fe 64% | 10-40 | -100 | -4.8%
| | Iron Ore Calibrate | Fe 62% | 10-40 | -50 | -3.1%
| | Iron Ore Calibrate | Fe 60% | 5-20 | 0 | 0.0%
| | Iron Ore Calibrate | Fe 62% | 5-20 | -100 | -6.3%
| | Iron ore - Fines | Fe 63% | Fines | 0 | 0.0%
| | | | | |
Change on February 19th is as compared to February 18th 2009
Change is in INR per tonne
To know exact levels, likely scenario, domestic iron ore spot prices at Bellary and Burbil 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)
Universal Stainless to invest in Bridgeville melt shop - 20 Feb 2009 Universal Stainless & Alloy Products Inc has announced that it will invest USD 13 million in its Bridgeville melt shop over the next 15 months.
The capital improvement will include major upgrades in equipment, automation and plant layout designed to:
1. Cut production cycle times and customer lead times
2. Improve on time delivery performance
3. Increase material yields
4. Reduce operating costs
5. Enhance working capital management
The equipment and infrastructure spending will be completed by the end of 2009 and the automation investment will be completed by the middle of 2010. The capital improvement is expected to begin producing cost savings in the 2009 fourth quarter. Once fully implemented, the capital improvement is expected to yield cost savings of more than USD 7.5 million per year.
The major components of the capital improvement include:
1. Installation of a newly designed 50-ton electric arc furnace shell and purchase of state of the art equipment designed to automate certain recurring operating processes
2. Upgrade of the alloy addition equipment at the Argon Oxygen Decarburization unit
3. Addition of new ladle preheating equipment
4. Modification of plant layout and material handling systems within the melt shop and scrap yard to improve product flow
5. Implementation of new melting and refining automation software
Universal Stainless is working with PNC Bank to establish a new revolving credit and term loan facility. This new facility will replace the company's existing revolving credit facility that expires June 30. The combination of existing cash balances, future cash flows and the new facility are expected to be more than sufficient to fund this capital project as well as other future cash needs for the company.
Mr Dennis Oates president & CEO of Universal Stainless said that "We are committed to delivering unparalleled customer service through reliable on time delivery, short lead times and quality products. Over the past several months, we have critically evaluated our ability to meet this commitment. These investments in our melt shop will enable us to meet our commitments to customers and provide further opportunity to enhance the profitable growth envisioned for our company."
Recession reports - Mr Greenspan sees it to be worst since 1930 - 20 Feb 2009 Mr Alan Greenspan former chairman of US Federal Reserve said in a speech to Economic Club of New York that the current global recession will surely be the longest and deepest since the 1930s and more government rescue funds are needed to stabilize the US financial system. He added that "To stabilize the American banking system and restore normal lending, additional TARP funds will be required."
He said that US Treasury's Troubled Asset Relief Program designed to help bail out banks has been partially successful. Despite his prognosis on the current downturn, he said that the pace of economic deterioration cannot persist indefinitely.
However, he reiterated that a housing recovery is a necessary condition for the end of the financial crisis and said that the prospect of stable home prices remains many months in the future. He added that the stock market, meanwhile, is being suppressed by a degree of fear not experienced since the early 20th century.
He said that the real test of fiscal stimulus is whether it primes the pump for private demand. He added that the Federal Reserve's myriad emergency lending programs and the Treasury's TARP funds have the potential of being unwound eventually without leading to inflation or great cost to the taxpayer.
He added that "At the first signs of stabilization and a flattening of the unemployment rate, I presume the Federal Reserve will start to rein in much of its credit extension. However, Congress is likely to strongly object to any tightening of credit prior to full employment being restored. Policy reversals on the fiscal front are nearly certain to meet stiff resistance."
Mr Greenspan said that "Even with the breakdown of self regulation, the financial system would have held together had the second bulwark against crisis, our existing regulatory system functioned effectively. But under crisis pressure it, too, failed. We need not rush to reform. Private markets are imposing far greater restraint at the moment than would any of the current sets of new regulatory proposals."
(Sourced from www.reuters.com)
Iron ore price negotiations - Vale offers 10% cut as per CMMA - 20 Feb 2009 A senior industry official said that Brazilian miner Companhia Vale do Rio Doce is sticking to its late January offer of a 10% cut in 2009 iron ore contract prices, but Chinese steel mills are holding out for much steeper cuts.
Mr Zou Jian chairman of the Metallurgical Mines Association of China told Dow Jones Newswires in a telephone interview that Vale is willing to sign the price agreement immediately if the Chinese side would accept that offer. He added that "But nobody wants to take that offer.”
Mr Zou said that BHP and Rio have yet to make any price offer.
Mr Zou said that "They are hoping steel prices will recover, but that doesn't look likely adding he expects the fall in prices this year to be "large."
He added that "It is reasonable to think it will be a 30% to 50% cut.”
Mr Zou said that it is possible Vale may reach a price accord with Japanese and European steel makers first, effectively setting a benchmark for the Chinese.
Chinese mills led by the CISA and Baosteel are in the midst of price negotiations for the 2009-10 contract year with the big three Vale, Rio Tinto Plc and BHP Billiton Ltd. A 10% drop from Vale's 2008 prices would mean steeper cuts for the other two which had negotiated higher prices in 2008.
(Sourced from Dow Jones Newswires)
Downsizing deals - CSN may lay off another 1,000 jobs - 20 Feb 2009 BNamericas quoted Mr Renato Soares president of South Rio de Janeiro metalworkers union as saying that Brazilian steelmaker CSN could soon lay off an additional 1,000 workers.
Mr Soares said that "I was told by a company executive that if there is no agreement between the union and the company soon, CSN will lay off 1,000 employees."
According to the union, 1,300 CSN employees have lost their jobs since December 2008.
(Sourced from www.bnamericas.com)
Contractors urging Saudi government not to resume steel exports - 20 Feb 2009 According to a report in the Saudi daily Al Riyadh, some owners of Saudi contracting companies are exerting pressures on the Trade Ministry not to resume the export of steel, cement and other building materials.
Steel and cement companies believe, however that the Saudi market might soon witness over supply of building materials and a 30% surplus which is expected to reach 50% by the end of the year. The ban was imposed in the second quarter of 2008.
Mr Mehdi Al Qahtani executive Chairman of Al Rajhi steel Industries criticized press reports of a steel crisis saying that the far from reality statements are released by some owners of contracting companies who want to keep prices of steel, cement and other building materials down even if it was at the expense of local producers.
He said the Saudi steel industry is in urgent need for state support to be able to continue, adding that the sector is suffering losses.
(Sourced from Emirates Business)
China may cap steel output at 500 million tonnes - Report - 20 Feb 2009 Reuters quoted an industry source said China will restrict steel production, force mills to move to coastal regions and ditch inefficient equipment under a draft proposal being discussed by the government.
The draft plan would limit China's crude steel output from 2011 onwards to 500 million tonnes a year. In 2008, China's crude steel production was 500.49 million tonnes. It would require 40% of steelmaking capacity to be located in coastal areas up from 35% now, but the government would put a mechanism in place to help companies assist those losing their jobs.
The plan would also increase the minimum size of blast furnaces from 300 to 400 cubic meters and the minimum size of converters from 20 to 30 tonnes.
The source said the government is expected to finalize the package of measures by the end of this month
(Sourced from Reuters)
Indian iron ore exports in January surge by 21% YoY - 20 Feb 2009 Bloomberg reported that India’s iron ore exports in January 2009 rose for the second straight month as China, the world’s largest consumer of the steel making raw material, increased purchases.
The Federation of Indian Mineral Industries said that shipments rose to 13.9 million tonnes from 11.5 million tonnes a year earlier.
However shipments in the 10 months ended January 2009 fell by 1.5% YoY.
Indian iron ore exports had surged by 38% to 13.6 million tonnes in December 2008 as compared 9.8 million tonnes in December 2007.
(Sourced from Bloomberg)
CSC may post operating loss in Q1 due to discounting - 20 Feb 2009 China Steel Corporation has confirmed that it is likely to post an operating loss in the first quarter of 2009 mainly because of retroactive discounts to customers.
Mr Chung Lo min executive VP of CSC said that as a result of retroactive discounts totaling TWD 4 billion in the first quarter, it would likely register a decline in revenues for the January to March 2009 period. If his forecast is accurate, it would be the second quarterly loss in a row for the steelmaker, which is 23% owned by the government.
It may be noted that CSC suffered its first quarterly loss in its nearly 40 year history in the fourth quarter of 2008, reporting a loss of TWD 18.62 billion, which reduced its income for the year to TWD 30.2 billion, down by 50% YoY. In late November 2008, it lowered the prices of its steel products by an average of 22.56% or an average of TWD 7,058 per tonne, for the first quarter of this year.
(Sourced from www.taipeitimes.com)
Russian consortium to bid for Mongolian coal fields - 20 Feb 2009 RIA Novosti reported that Russian consortium comprising En+ Group, Severstal and Renova submitted investment proposals to the Mongolian government last month to develop one of the world's largest coal mines.
According to Vedomosti, the consortium's intention to develop the Tavan Tolgoi coal field in the Gobi Desert, with estimated reserves of 6.5 billion tonnes of coking coal, was confirmed by an executive of the Severstal steelmaker while a representative of the Renova asset management group declined to comment.
A representative of En+ Group owned by Russian billionaire Oleg Deripaska told the paper that the Mongolian side viewed positively the consortium's proposals. At the same time, the Mongolian government has yet to determine its project requirements and it is not yet clear whether it will issue a license for the entire mine or for separate sections.
The paper reported that in any case, competition is going to be tough as major global companies, such as Vale, Rio Tinto, BHP Billiton, Xstrata and China's Shenhua Energy are also keen to take part in the tender.
(Sourced from RIA Novosti)
Shanghai Futures Exchange gets approval for steel futures - 20 Feb 2009 The China Securities Regulatory Commission announced that the Shanghai Futures Exchange, China’s biggest commodity futures bourse by value, has been accorded approval to trade steel contracts,
The regulator has approved the futures listing of steel reinforcement bars and wire rods.
However the starting date or contract details were not announced.
However, Bloomberg reported that Shanghai’s steel futures may be limited to daily gains and declines of 5% and may also have a minimum transaction margin of 7%.
Shanghai’s steel futures would compare with contracts offered on the London Metal Exchange.
The Shanghai Futures Exchange had a turnover of CNY 28.9 trillion in 2008,
Japanese steelmills start talks on H1 rail export shipments to US - 20 Feb 2009 It is reported that Japanese integrated steelmakers have begun negotiations on their rail exports to USA for shipments in the first half of fiscal 2009. It is understood that on offer from the Japanese steelmakers to major US railroad corporations are flat prices to meet the terms of the existing supply contracts. But it is likely that the Japanese steelmakers will have to settle for a price reduction of USD 100 to USD 150 per tonne at the final stage due to a hostile environment in the wake of a deteriorating global economy.
In the USA, the domestic economy deteriorated in the October to December 2008 quarter, making a direct hit on various railroad corporations. As a result, their operations are reported to have deteriorated until now. Meanwhile, local transports by truck are recovering in falling prices of motor gasoline after a decline in crude oil prices. Besides, with falling demand for biofuels, railroad transports of grains, raw materials for biofuels, are way down.
According to Japanese steel industry sources, US railroads' requirements of rail imports from Japan in 2009 are expected to move sideways or decline. The existing inquiries from the US railroads call for virtually flat quantities of Japanese rail supplies, compared with the terms of the existing supply contracts.
In the USA, prices of local ferrous scrap stand at a low level. Therefore, the Japanese steelmakers admit that they will have no option but to reduce prices by USD 100 to USD 150 per tonne at the final stage in their rail exports under negotiation for April to September shipments to the USA. If the Japanese steelmakers are requested to make a larger price reduction in what they negotiate to the USA, they will opt for alternative rail exports to other destinations where rails are in high demand for infrastructure projects.
(Sourced from TEX Report Limited)
Mitsui eyes stake in Teck Cominco coal operation - 20 Feb 2009 Reuters reported that Japanese trading house Mitsui & Company is among the potential bidders for a stake in Teck Cominco's Elk Valley metallurgical coal operation in a deal that could be worth roughly USD 2.5 billion.
The sources said that POSCO a customer of Elk Valley and Mitsui have looked at Elk Valley since the process kicked off last year. Analysts have also named Teck shareholder Sumitomo Metal Mining as a potential bidder for an Elk Valley stake.
The sources said that South Korea's POSCO is also eyeing a stake in Elk Valley. But Ms Ko Min jin spokeswoman of POSCO said that "We are not reviewing the deal."
Toronto listed Teck, a diversified resources firm focused on copper, metallurgical coal, zinc and gold is trying to sell assets to pay down debt and is expected to sell as much as 49% of Elk Valley. RBC Capital Markets has put the value of Elk Valley at CAD 6.3 billion.
Teck took control of Elk Valley when it bought Fording Canadian Coal Trust for USD 13 billion last year, taking on nearly USD 10 billion in debt the bridge loan plus USD 4 billion in term debt to do so.
The company said this week said that Teck, which reported a steep Q4 loss on last Monday due to write downs has also begun talks with bankers to try to renegotiate a USD 5.8 billion bridge loan that is due in October.
Teck said that it was consulting with bankers on selling an Elk Valley stake and CEO Mr Don Lindsay said that the company was seeing interest from potential buyers in several countries, including key customers in Asia.
(Sourced from Reuters)
Downsizing deals - ThyssenKrupp may fire 1,500 at 3 shipyards - 20 Feb 2009 Financial Times Deutschland citing metal workers union representative Mr Wolfgang Maedel reported that ThyssenKrupp AG may fire as many as 1,500 workers at three shipyards because of a decline in orders.
The paper said that shipyards in Hamburg, Kiel and Emden are affected because of a drop in demand for container ships and small yachts.
(Sourced from www.ftd.de)
Baotou Steel rolls out X80 steel - 20 Feb 2009 It is reported that Baotou Steel's Sheets Mill has successfully rolled out X80 high-grade pipeline steel, with all its performances meeting the national quality standards, according to the latest testing statistics.
The plant has finished the designing work of X80 pipeline steel since last Sept, and later on, under the cooperation with the experts from German SMS, it further optimized the products mix.
The success in the trial-production of X80 pipeline steel has laid a solid foundation for the batch production in the future. And the company is trying to produce the longitudinal welded pipeline steel in the light of the demands in the West-East natural gas transmission project.
X80 pipeline steel, mainly used in the transportation of natural gas and oil, has strict quality requirements and good bending and welding performance. In recent years, along with the strong demands of pipeline steel both at home and abroad, the plant has regarded the high-grade pipeline steel development as the major task.
(Source: China Metallurgic News)
CIL to revive coking coal mines in Jharia - 20 Feb 2009 IANS reported that Coal India Ltd will invest INR 100 billion to revive coal mines at Jharia in Jharkhand.
Mr PS Bhattacharyya CMD of Coal India said that “Jharia coal mines are highly under utilized and only coking coal is produced there. If the mine fire at Jharia is controlled and this facility is properly utilized, it alone can cater to the coking coal need of the whole steel industry.” He said hat the investment will be used to control the mine fire and install modern technologies for mining.
Mr Bhattacharyya said that “We are already in talks with major steel producers and the government. The only single issue is the rehabilitation of 100,000 families that has to be taken care by both government and the steel companies.”
The Jharia project had faced several roadblocks because of protests raised by affected people for proper rehabilitation.
(Sourced from IANS)
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