| Price Index - India | | | | 20-Feb | 19-Feb | Change | | ILPPI | 6668 | 6672 | -4 | | IFPPI | 6549 | 6549 | 0 | | INDSPI | 6611 | 6613 | -2 | | What is it? | | Poll Results | | Buy America will lead to trade barriers by other nations? | | Yes | 65% | | No | 23% | | Can't Say | 13% | | View Current Poll | | Currency | | AUD | 1.5585 | | BRL | 2.3782 | | CAD | 1.2577 | | CNY | 6.8262 | | EUR | 0.7902 | | GBP | 0.6998 | | INR | 49.9816 | | JPY | 93.9532 | | RUB | 36.0333 | | USD | 1.0000 | | ZAR | 10.1468 | | 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 (19-Feb) | USD | 0 | | | LME-M | 280 (19-Feb) | USD | -2 |  | | LME-F | 335 (19-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 solitude on weekend - 21 Feb 2009 The domestic Indian Steel prices remain unchanged on Friday February 20th 2009. The Indian Long Product Price Index (ILPPI) dipped by 4 points whereas the Indian Flat Product Price Index (IFPPI) remained unchanged. The overall Indian Steel Price Index (INDSPI) fell by 2 points.
| Class | 19-Feb | 20-Feb | Change
| | ILPPI | 6672 | 6668 | -4
| | IFPPI | 6549 | 6549 | 0
| | INDSPI | 6613 | 6611 | -2
| | | | |
ILPPI - Long Product Price Index
IFPPI - Flat Product Price Index
INDSPI - Indian Steel Price Index
Long Products:
| Category | 19-Feb | 20-Feb | Change
| | PI - TMT | 6485 | 6476 | -10
| | PI - WRC | 7123 | 7123 | 0
| | PI - Angle | 6288 | 6288 | 0
| | PI - Channel | 6337 | 6337 | 0
| | PI - Joist | 5891 | 5891 | 0
| | | | |
Flat Products:
| Category | 19-Feb | 20-Feb | Change
| | PI - Narrow Plates | 6160 | 6160 | 0
| | PI - Wide Plates | 6592 | 6592 | 0
| | PI - Hot Rolled | 6393 | 6393 | 0
| | PI - Cold Rolled | 7099 | 7099 | 0
| | PI - Galvanized | 6786 | 6786 | 0
| | | | |
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(Sourced from www.steelprices-india.com)
SAIL RDCIS develops Zinc Dross Remover for HDPS - 21 Feb 2009 Ranchi Express reported that Steel Authority of India Limited’s RDCIS has developed a zinc dross remover for HDPS with in house facility.
This equipment is highly sophisticated and being utilized for development of different types of zinc coatings on steel and improvement in process to minimize zinc consumption. This equipment is unique in nature and very limited numbers of countries manufacture such equipment.
Along with equipment, 3 sets of zinc dross remover were also supplied. Those were consumed in a year only. Each set of zinc remover was purchased in EUR 2,500 only. Material of the imported dross remover paddles was examined and analyzed.
Results revealed that the paddles are made of electrode quality graphite. Efforts were made to search electrode quality graphite in SAIL steel plant for making such pieces. RDCIS engineers discussed the problem in detail and worked out action plan.
One piece of electrode was collected from Alloy Steel Plant, Durgapur and an identical dross remover with few modifications in thickness was fabricated in RDCIS work shop.
Newly developed dross remover costs approximately INR 5,000 only. Life of each dross remover has been 3 to 4 times of imported set of dross remover.
(Sourced from Ranchi Express)
Canadian minister meets Essar on Algoma plans - 21 Feb 2009 PTI reported that Essar Group may make further investments in Canada across several areas.
A source close to the development said that Mr Tony Clement Canadian Industry minister called Mr Ravi Ruia Vice Chairman of Essar Group recently and discussed the current and the possibilities of future investment in the country.
The source said that Mr Clement had asked the Essar Group to invest in the country in other areas apart from steel. Essar Group is engaged in oil & gas, communication, shipping, power and construction as well other than steel.
An Essar Group spokesperson said that "Any investment decision will be taken up at the appropriate time depending upon the market condition."
Essar Steel had acquired Algoma Steel in 2007. Algoma has 4 million tonne of steel making capacity and is among the top three producers of the alloy in Canada.
(Soured from Press Trust of India)
Recession reports - India second worst affected in BRIC - 21 Feb 2009 According to an ASSOCHAM Eco Pulse Study, India is among worst affected emerging countries to have lost foreign exchange reserves as much as 3.5% of its GDP due to currency imbalances in last 4 months triggered by global financial crisis, 2nd only to Russia in BRIC nations.
The ASSOCHAM Study, BRIC FOREX reserves & Global currency imbalances found that, as an aftermath of global financial crisis; exacerbated after collapse of Lehman Brothers in September 2008, international currency imbalances eroded foreign exchange reserves of Russia by a whopping 10 % of GDP, India by 3.5 % of GDP while Brazil managing a smaller decline of 0.4 % of GDP with China actually adding by a magnitude of 1% of GDP, although at a decelerating pace.
It added that in a bid to put breaks to depreciation and devaluation in domestic currencies, monetary authorities intervention by flowing dollars to stem the downward pressure on local currencies has led to massive drainage of international reserves.
Foreign exchange reserves of Russia have fallen by a whopping USD 175 billion since September 2008 followed by India’s decline of USD 43.2 billion. Brazil recorded a moderate decline of USD 6 billion in its international reserves position whilst China adding USD 4 billion again at a diminishing pace. The BRIC together hold about 41% of global foreign-exchange reserves.
Foreign Exchange Reserves in USD billion
| Country | Sep'08 | Jan'09 | Difference | Change
| | Brazil | 207.0 | 200.8 | -6.2 | 41.4%
| | Russia | 563.6 | 388.1 | -175.5 | 44.7%
| | India | 291.8 | 248.6 | -43.2 | 12.5%
| | China | 1905.6 | 1946 | 40.4 | 0.1%
| | | | | |
Mr DS Rawat secretary general of ASSOCHAM said that “Foreign exchange reserves have gained ever so greater importance in the present global scenario in providing cushion to protect the economy from speculative capital movements. The financial crisis led global currency imbalances are rapidly deteriorating the international reserves position world over.”
Ever since the global financial crisis emanated to take its toll on the Indian economy, Indian rupee has been under strong pressure against the US dollar. The rupee breached the psychological INR 50 level in November 2008 and has been under sustained pressure against the greenback that initiated the RBI to sell dollars to resist the fall in domestic currency. Indian rupee depreciated by 12.58% during September 2008 to January 2009.
An indicative analysis of the Reserve Bank’s policy stance to fend off depressing forces on the Indian Rupee suggests that the heavy volumes of dollar sold by the monetary authority to avoid exchange rate depreciation has led to the rapid depletion of foreign exchange reserves.
From a peak of USD 315.6 billion in June 2008, a plunge of USD 67 billion in India’s foreign exchange reserves to USD 248.6 billion in January end 2009 has been a consequence of RBI’s strong measures to stem the global pressures on the Indian currency via draining US dollars to support the domestic currency.
Maharashtra Government may take up the Phase II of metro - 21 Feb 2009 Projects Today reported that the Maharashtra Government may have to opt for Delhi model to implement the Phase II of Mumbai metro project as the ongoing credit crunch has kept the bidders away from the proposed rail link project.
As per report, the Delhi model will entail government funding while the PPP model will mean that the private sector plays a leading role in funding, constructing and operating the line.
Phase II project route stretch from Charkop to Bandra to Mankhurd which is to be implemented on PPP basis has failed to attract bidders despite of the fact that the bidders were granted extra time. The Phase II project is estimated to cost INR 6,500 crore.
(Sourced from Projects Today)
Hyderabad Metro on bumpy track - 21 Feb 2009 Express News Service reported that Hyderabad Metro Rail Project has become uncertain after the Centre decided to take over the Maytas firms. Maytas Infrastructure Limited, headed by Mr Teja Raju, elder son of Mr B Ramalinga Raju had bagged the INR 12,132 crore project last August.
The Maytas consortium's model of public private partnership was dubbed by the Andhra Pradesh Government as innovative and unique based on a design, build, finance, operate and transfer of the 71 kilometer long metro rail. The consortium comprises Navabharat Ventures Limited, Maytas Infra Limited, Italian-Thai Development Public Company Limited and Infrastructure Leasing and Financial Services Limited.
Though, the consortium is still intact, Maytas Infra was finding it hard to achieve financial closure. an official of Hyderabad Metro Rail said that "The state Government felt that Maytas had time till March 31st to achieve financial closure but the firm is in trouble after Ramalinga Raju revealed the Satyam fraud. Now that the Centre has taken over, the project becomes uncertain because it will take time to complete the legal formalities to hand over to a new board to be appointed by the Centre."
The project had courted controversy right from the beginning. Mr E Shreedharan MD of the Delhi Metro Rail Corporation had expressed reservations and doubts over the viability of the project.
As per Maytas model, the Andhra Pradesh Government didn't have to spend a single penny on the project. Instead, the Maytas Metro Limited which would have spent INR 12,132 crore to build the elevated metro rail would also have paid the Government for being allowed to execute the project. Over the 35 years concession period of the project, Maytas would pay the state INR 30,311 crore as a payback, INR 11 crore on signing of the agreement, INR 50 crore on achieving financial closure, INR 200 crore in the 4 year, INR 100 crore a year from 7 to 9 year and, INR 1,750 crore from 18th to 34th year.
The Maytas hoped to generate its revenues by developing prime real estate and leasing space for commercial use along the elevated project, at stake was nearly 18 million square feet of virtual space or 269 acres available at 66 stations and three depots along the 71 kilometer metro rail. Maytas planned to develop shopping malls, multiplexes, residential apartments, office spaces etc within the applicable laws, and give them on lease.
(Sourced from Express News Service)
PwC reports put India as emerging economic power - 21 Feb 2009 IANS reported that engineering and construction companies should rush to India as it offers huge opportunities for their future growth.
The report said that "Foreign companies who do not acknowledge the opportunity now may miss out on a critical opportunity to establish a long term presence in one of the world's largest growth markets," adding that India will still post a growth of 7% to 7.5% in 2009 despite the global meltdown.
It added that liberalization of regulations and a deliberate strategy on the part of the Indian government to develop infrastructure and promote foreign direct investment spells opportunity for foreign engineering and construction companies.
According to PwC, India will become the world's third largest economy by 2050.
Being its second largest economic activity after agriculture, construction in India is set to boom as the country plans to spend USD 167 billion on electricity, USD 92 billion on roads and USD 65 billion on railway in the next 3 years.
The report said that "The developing services and manufacturing sectors, increasing consumer demand and government commitments to rejuvenate agriculture and rural areas have spurred increases in rail, road and port traffic, necessitating further infrastructure improvements."
It said that public private partnerships are also booming as investments worth USD 150 billion are in the pipeline. Simplified FDI approval process by India saw a surge in international interest in PPPs in 2008.
It added that "Already a number of firms from Canada, Europe, Australia, China, Malaysia and Korea have made their presence felt in India. Toyo Engineering, Jacobs H&G, Uhde, Tecnimont, and Aker Kvaerner are already leading players in the region. An example of a Canadian company making the move into India is SNC-Lavalin, which has acquired Pipecon Consultants Pvt Ltd, based in Mumbai and Span Consultants Pvt Ltd, an engineering firm headquartered in New Delhi with local offices in Bangalore, Mumbai and Kolkata."
Mr Michael Clifford PwC Canada's engineering and construction expert said that "The opportunities to develop a significant business in India are extremely promising for construction companies with roads, ports and airports, railways and power standing out as particular bright spots."
(Sourced from IANS)
Dhamra port to be functional by 2010 - 21 Feb 2009 Projects Today reported that the Orissa government announced recently that the second phase of construction on Dhamra and Gopalpur ports are in progress and the Dhamra port will become operational by 2010.
As per report, the total cost of the Dhamra port in Bhadrak district is INR 2,464 crore of which about INR 1,173 crore has so far been spent. An amount of INR 691.44 crore was spent on constructions, INR 85.37 crore was given to the government and the people towards land cost while INR 396.19 crore was spent towards other expenditure.
(Sourced from Projects Today)
New railway line projects in India - 21 Feb 2009 A total number of 41 new line projects and 20 gauge conversion projects have been included in the Railway Budgets during the last 3 years and current year which mainly cover backward, rural and under-developed regions of the country. Surveys for 175 new line and 20 gauge conversion projects have been taken up during the same period.
The projects are in various stages of progress as per the availability of funds. None of the projects has been fully completed out of these projects.
The project wise details of the funds allocated and expenditure incurred is available in Railway Budget documents. State-wise expenditure is not maintained.
However, the projects are progressing as per the availability of funds. No time frame is feasible to be give.
100 Escalators to be installed at major railway stations - 21 Feb 2009 Indian Railways have decided to install 100 numbers of escalators at 50 major stations. In this connection following 2 works have been sanctioned in Railway Budget for 2008-09 at the total cost of INR 70 crore.
In installation of 50 numbers escalators vide Pink Book item no 625 at the cost of INR 35 crore. Installations of 50 numbers escalators vide Supplementary Budget 2008-09 at the cost of INR 35 crore.
The installation of these escalators have been planned to be completed in a phased manner.
Small hydropower picking up in Meghalaya - 21 Feb 2009 Project Monitor reported that Meghalaya is set to have a new small hydropower project in March 2009. This marks the first success for the northeastern hilly state's endeavor of tapping its sizeable 400 MW of hydropower potential through small hydro-power projects.
Mr LS Tariang chief engineer (Hydro, Planning & Small Hydro) of Meghalaya State Electricity Board said that the state is confident of commissioning the 1.5 MW Sonapani mini hydel project by March. Construction work is also underway on the Lakroh project of identical capacity, which is scheduled to begin operations by March 2010.
MR Tariang said that 44 small projects have been identified with a total capacity of 398.1 MW. Out of these, construction work has begun on the aforementioned Sonapani and Lakroh projects.
MeSEB does have some small hydropower projects in operations, but these were commissioned way back between 1950 and 1970. Some of these schemes are not in operation while others are working at sub-optimal efficiency. The board is revamping some schemes like the 18 MW Umiam Umtru that was commissioned in 1970.
Besides, small hydropower, Meghalaya is also looking at adding nearly 190 MW capacities through medium and large hydropower projects, out of which the 126 MW Myndtu Leshka in Jaintia Hill district is the largest. The northeastern state is also looking at private participation in setting up large projects aggregating 2,400 MW. This endeavor would fructify in the 12th Plan period though.
(Sourced from Project Monitor)
KLG Systel wins INR 30 crore order in Haryana - 21 Feb 2009 BL reported that KLG Systel Ltd won an order worth INR 30 crore from the state-run power company in Haryana.
KLG in a statement said that the Gurgaon based technology solutions provider will set up thirteen 33 KV substations and lay down 33 KV and 11 KV electrical lines on turnkey basis for Uttar Haryana Bijli Vitran Nigam Ltd.
(Sourced from Business Line)
Russians eager to extend help in coal mining in India - 21 Feb 2009 BS reported that Russia is keen on lending its technical expertise in coal mining equipment to West Bengal, which has huge reserves of coal, but not appropriate machinery.
Mr Vladimir V Lazarev, Consul General of Russia in Kolkata said that "West Bengal could possibly use Russian equipment for coal mining since the region has huge potential and could benefit from the use of such technology."
Mr Lazarev said that West Bengal and the eastern region also had an enormous potential and the state government has initiated several reforms aimed at the socio economic progress, which had created a favorable environment for favorable business climate, offering new opportunity and vistas of cooperation.
He said that "As it is well known, the Russian experts are offering their expertise at Durgapur, Rourkela and Bokaro steel plants which are undergoing modernization along with the power station at Orissa. The Russian company Technopromexport has commenced construction of the Barh thermo power station in Bihar and has opened its office in Kolkata."
(Sourced from Business Standard)
Orissa to keep Sasubohumali bauxite mines with OMC - 21 Feb 2009 PTI reported that the Orissa government has decided to keep Sasubohumali bauxite deposits with the state owned Orissa Mining Corporation.
Official sources said that Sasubohumali bauxite mines have a reserve of about 81 million tonne of the metallic ore, having an average grade of 40.38% of aluminium oxide and 2.63% of sillicon dioxide.
While a large number of firms were eyeing Sasubohumali, Mr Naveen Patnaik CM of Orissa had asked the steel and mines department to recommend OMC's name in order to avail prospecting license as well as mining lease.
(Sourced from Press Trust of India)
Global crude steel production in January dips by 24% YoY - 21 Feb 2009 World crude steel production for the 66 countries reporting to the World Steel Association was 86 million tonnes in January. This is 24% lower than the same month last year.
All major steel producing countries showed a two digit decrease in crude steel production in the first month of 2009 compared to January 2008, except China.
China’s crude steel production for January 2009 was 41.5 million tonnes increase of 2.4% on January 2008.
Japan produced 6.4 million tonnes of crude steel in January 2009, down by 37.8% YoY as compared to the same month last year. South Korea showed a decrease of 25.6% from January 2008, producing 3.5 million tonnes of crude steel in January 2009.
In the EU, Germany produced 2.7 million tonnes of crude steel in January 2009, a decrease of 35.6% from January 2008. Italy’s crude steel production was 1.6 million tonnes down by 40.4% compared to the same month last year. France showed a decrease of 46.7% from January 2008, producing 0.9 million tonnes in January 2009. UK’s crude steel production for January 2009 was 0.7 million tonnes down by 45% than the same month last year.
The US produced 4.1 million tonnes of crude steel in January 2009, a decrease of 52.7% as compared to the same month last year. Brazilian production was 1.6 million tones down by 45.6% less than in January 2008.
Australia showed a 36.4% decrease from January 2008, producing 0.4 million tonnes of crude steel in January 2009. Egypt produced 0.4 million tonnes of crude steel in January, a 23% decrease on the same month 2008.
World steel production in January 2009 was 4.5% higher than the previous month mainly as a result of the 9.9% increase in Chinese production.
(Sourced from worldsteel.org)
Anglo American to take decisive actions - 21 Feb 2009 Global mining major Anglo American announced plans for USD 2 billion target from cost saving and efficiency initiatives as under
1. Asset optimization to deliver USD 1 billion contribution to operating profit by 2011
2. Procurement and shared services savings on track for USD 1 billion by 2011
3. 2009 capital expenditure reduced by more than 50% to USD 4.5 billion. Major strategic world-class projects preserved (Los Bronces, Barro Alto,Minas-Rio)
4. Flexible growth options retained
Production growth from certain operations scaled back to meet lower demand outlook ready to make further cuts, as required
5. Global headcount reduction of 19,000 under way, in line with revised growth plans
6.Share buyback suspended
7. Dividend
Dividend payments suspended; total dividend for the year of 44 cents per share
Safeguarding balance sheet flexibility to preserve growth options Commitment to resume dividend payments as soon as market conditions allow
Chinese steel sector facing overcapacity in 2009 - 21 Feb 2009 China Business News cited many experts as saying at recent CISA conference, that China's steel industry is facing severe excessive capacity, with the possibly recovery in 2009 hinging on the strengthened inefficient capacity cut and raw materials costs reducing.
Latest figures from CISA show China's crude steel production capacity posts at 610 million tonnes by the end of last year, and the total capacity would hit 660 million tonnes factoring in the 50 million tonnes capacity under construction.
Compared with huge capacity, consumption last year merely stands at 500 million tonnes, with export of 59.18 million tonnes. And some new capacity additions are focusing on releasing in mid-2009 delayed by global economic woes, further exaggerating the already excess flat products capacity in the second half.
The serious excess capacity further depresses the already depressed condition. China's steelmakers have started losing money since last October, and lost CNY 5.84 billion in October CNY 12.8 billion in November and CNY 29.1 billion in December compared with a net of CNY 17.8 billion in June. Combined loss in last quarter stands at CNY 47.6 billion.
Mr Zhang Xiaogang director of CISA attributes the operating loss to the surging raw materials prices and the slackening demand pared by the global economic slowdown. Surging costs for raw materials last year have sent steelmaking pig iron's cost 51.62% higher than the previous year. He said that “Low steel markets have worsened in the new year. 2009 to be the most difficult year for China's steel industry as well as its macro economy in light of the lower global economic growth expectations, further withering international steel market, the emerging trade protectionism and the slumping China's steel export.”
Mr Chi Jindong deputy director of the steel association said according to CISA, China produced 500 million tonnes of crude steel last year up 5.59 million tonnes from a year ago; with apparent consumption posting at 450 million tonnes up by 12.71 million tonnes. And crude steel consumption is set to drop in 2009 to merely 416 million tonnes to 438 million tonnes even taking Beijing's CNY 4 trillion packages into account. He said that without the huge investment, the figure might be only 390 million tonnes or so. In addition, steel export in the year is also unlikely to keep the level posted last year.
Despite the overcapacity, domestic steel mills trimming their production in last Oct have again running at full rate. And based on figures offered by Mr Wu Xichun senior advisor to CISA, China's 2009 steel output would exceed 500 million tonnes.
To ease the problem, the steel support plans approved by the State Council lately has further raised steel industry standards to force its mammoth steel sector to slim down and consolidate, increasing the minimum size of blast furnaces from 300 cubic meters to 400 cubic meters and the minimum size of converters from 20 tonnes to 30 tonnes.
(Sourced from China Business News)
US ITC approves AD duty on stainless steel pressure pipe from China - 21 Feb 2009 The United States International Trade Commission determined that a US industry is materially injured by reason of imports of welded stainless steel pressure pipe from China that the US Department of Commerce has determined are subsidized and sold in the United States at less than fair value.
As a result of the Commission's affirmative determinations, the Department of Commerce will issue a countervailing duty order and an antidumping duty order on imports of this product from China.
Department of Commerce determined on January 22nd 2009 that Chinese producers and exporters have sold stainless pressure pipe in the US from 10.53% to 55.21% less than normal value. In addition, it also determined that Chinese producers and exporters have received net countervail able subsidies ranging from 1.10% to 299.16%.
All six Commissioners voted in the affirmative.
As a result of the Commission's affirmative determinations, the Department of Commerce will issue a countervailing duty order and an antidumping duty order on imports of this product from China.
Factual highlights
Product Description
The product covered by these investigations is circular, welded austenitic stainless steel pressure pipe (WSSPP) not greater than 14 inches in outside diameter, most commonly produced to ASTM A-312 or A-778 specifications. Subject imports are provided for under Harmonized Tariff Schedule of the United States statistical reporting numbers 7306.40.5005, 7306.40.5040, 7306.40.5062, 7306.40.5064, and 7306.40.5085. They may also be imported under statistical reporting numbers 7306.40.1010, 7306.40.1015, 7306.40.5042, 7306.40.5044, 7306.40.5080, and 7306.40.5090. Specifically excluded are (1) welded stainless mechanical tubing; (2) boiler, heat exchanger, superheater, refining furnace, feedwater heater, and condenser tubing; and (3) other specialized tubing.
Status of Proceedings
1. Types of investigations: Final antidumping and countervailing duty.
2. Petitioners: Bristol Metals, Felker Brothers, Marcegaglia USA, Outokumpu Stainless Pipe, and the United Steel Workers.
3. Investigations instituted by USITC: January 30, 2008.
4. Hearing: January 13, 2009.
5. USITC vote: February 19, 2009.
6. USITC notification of Department of Commerce: March 2, 2009.
U.S. Industry:
1. Number of U.S. firms involved in production of WSSPP in 2008: 8
2. Production volume is concentrated in Arkansas, Florida, Kentucky, New Jersey, Oklahoma, Oregon, Pennsylvania, Tennessee, Washington, and Wisconsin.
3. Employment of production and related workers: (1)
4. U.S. producers' shipments in January-September 2008: 20,980 short tons.
5. U.S. apparent consumption in January-September 2008: 48,568 short tons.
6. Ratio of quantity of total imports to U.S. apparent consumption in January-September 2008:
56.8 percent.
U.S. Imports:
1. Quantity of subject imports: 30,371 short tons (2007); 6,700 short tons (January-September 2008).
2. Value of subject imports: $154.8 million (2007); $33.6 million (January-September 2008).
Mechel to supply coking coal to Hyundai Steel - 21 Feb 2009 Mechel OAO one of the leading Russian mining and metals companies, announced that it has signed a long term agreement with Hyundai Steel, Korea to supply coking coal.
According to the release the agreement was signed within a visit to South Korea of the Russian delegation headed by the Russian Federation Vice-Premier Mr Igor Sechin, in which Mechel OAO Chief Executive Officer Mr Igor Zyuzin also participated.
Pursuant to the agreement, the arrangement was reached for Mechel to deliver K-9 grade coking coal mined from Neryungri open pit to Hyundai Steel for five years beginning on April 1st 2010. The planned delivery volume ranges between 100,000 to 300,000 tonnes of coal annually.
The export coal deliveries to South Korea will be performed by Mechel Mining OAO’s subsidiary, Yakutugol OAO.
Mr Vladimir Polin Senior Vice President of Mechel OAO said “South Korean-based companies, including Hyundai Steel, are traditionally consumers of Yakutian coking coals. The long-term agreement for the delivery of K-9 grade coking coals will enable Mechel to ensure more sustainable utilization of Yakutugol’s production capacity and to ensure sales as part of the output from the Elga deposit in the long-term.”
Usiminas Q4 net profit fell by 14% YoY - 21 Feb 2009 Brazilian steelmaker Usiminas has reported a fourth quarter net profit of BRR 837 million, down by 14% YoY from BRR 970 million a year earlier. EBITDA rose to BRR 1.51 billion from BRR 1.22 billion.
Usiminas was expected to post a fourth quarter net profit of BRR 368.3 million. It said that its market outlook for the second half of 2009 had improved due to actions that governments are taking to expand lines of credit, reduce taxes and increase investments in infrastructure.
It added that "Despite the expected recovery over the year, estimates indicate a fall in demand compared with 2008, which registered a rather heated market in the first nine months."
(Sourced from www.reuters.com)
Stimulus plans - US steel industry supports package - 21 Feb 2009 It is reported that the US steel industry, with demand for its products in the doldrums, has joined the chorus of beleaguered domestic industries jostling for position on President Mr Barack Obama's list of projects in his multi billion dollar national economic stimulus plan.
Mr Thomas Danjczek president of Steel Manufacturers Association said that a stimulus package is needed immediately, but stressed that this was not a call for a Detroit style bailout.
He added that "I represent 70% of the US steel industry and none of my members are looking for a bailout, but large infrastructure projects would greatly benefit the steel industry, as orders for raw materials increased as those projects got started. Producers of steel rebar, plate, beams, and wire rod should all see an increase in orders once projects are under way."
Mr Danjczek said that the need was for a national strategy to get the economy back on track. He added that "The importance of a national strategy can't be overstated. Even in the short term, this represents an opportunity to create thousands upon thousands of high paying jobs that cannot be outsourced."
According to AISI, US steel industry currently employs approximately 1.2 million people and contributes USD 350 billion to the national economy. Mr Obama's stimulus plan should be focused on large, infrastructure related projects that benefit not only US steel makers but all domestic industries in general.
Ms Nancy Gravatt spokeswoman for AISI said that large projects would help the entire country, not just US steel makers. She added that "That was one of the things that President Obama's team is doing, is identifying those kinds of projects as the priority ones, the ones that are ready to launch immediately. That would produce the kind of results which, I think, would be helpful to the economy."
(Sourced from www.tubelinks.com)
Steel market discipline pact approved in CISA meeting - 21 Feb 2009 It is reported that during CISA meeting on February 19th 2009, participants in principle approved the industrial pact that asks all players to preserve a standard steel market order by implementing self discipline. It will take effect from March 1st 2009.
Some of the salient points are as under
1. Steel enterprises should organize production on basis of market demand and should never make no order based operation. In othere words, when the market encounters violate change, the manufacturers should adjust output, product mix and inventory to push for a balanced supply and demand and prevent blind competition.
2. Steelmakers should not sell below total cost amid market stability and not below the manufacturing cost when sales go bad amid reduced demand.
3. Steelmakers and trading companies should share both the interests and risks. In other words, traders should take the initiative to maintain fair competition and build up long term and stable partnership with the manufacturers.
4. It calls for stable sales channels and network, less middle procedures and an improved direct supply proportion. For this, steelmakers, the branches and trading companies should improve sales system, combine production and sales rate with profitability and enhance modern logistics system such as processing and distribution and agents taking. Export channels and network should also be consolidated for a stable home market.
5. The pact prescribes that any acts against the pact should be checked and corrected. According to degree of the harms caused, the enterprises should be criticized and punished.
The pact is expected to bear a positive effect on the depressed steel sector this year. But some analyst doubted its practicability for lack of law restriction and supervision system. It's hard for the steelmakers and trading companies to follow the pact amid the credit crisis which has brought forward a fiercer competition.
Also quite difficult to measure the production cost as each manufacturer has different scale, equipment, raw materials source, technical level, personnel and management cost. Many steelmakers prefer to sell below cost in order not to lose the market share. Hundreds of thousands of traders are existing in China's steel market and their inferiority and complicated relationship with the steelmakers dim the prospect that they would be happy to work with the producers.
Mr Xue Changjiang, chairman of Shanghai Shunye Steel Group, a major steel trading house in China said "I don't think this accord would do much help to regulate the steel market, and it's no more than a paper. We should not put the blame of fluctuating steel price on steel traders, since no single trader is capable of manipulating the market price, and the price is in the hands of market fundamentals.”
(Sourced from Oriental Morning Post)
Iron ore price negotiations - Rio talks are uninterrupted - 21 Feb 2009 Reuters quoted Mr Gervase Greene spokesman of Rio Tinto as saying that iron ore price negotiations between Rio Tinto and Chinese steel mills were ongoing and had not been interrupted.
The spokesman said "I can assure you the negotiations are continuing."
Caijing magazine had 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."
(Sourced from Reuters)
Gerdau SA Q4 net profit down by 67% YoY on lower demand - 21 Feb 2009 Gerdau SA said that its fourth quarter net income dropped by 67% YoY as sales volumes slumped amid a global credit crisis. Profit fell to BRR 311 million from BRR 951.1 million.
Gerdau sold 24.4% less steel in the period than a year earlier as demand plummeted from the construction and automotive industries amid a recession in the world's largest economies. Demand for products such as steel is being reduced by the first simultaneous recession in the US, Japan and Europe since World War II.
Mr Raphael Biderman analyst with Bradesco Corretora said that "The US crisis reached a critical phase, finally having a material impact on Gerdau's results."
Mr Osvaldo Schirmer VP of finances at Gerdau said that "We don't see any clear tendency of recovery in Brazil either."
(Sourced from www.bloomberg.net)
CAPEX cuts - EVRAZ to delay buying of 51 % of Delong - 21 Feb 2009 BFM.RU reported that Evraz Group has got six months delay to August 14th 2009 in buying of 51 % of Chinese Delong Holdings for USD 1.5 billion
A year ago when Evraz concluded this contract, it was reported that Russian company can not guarantee the deal finishing in the term agreed due to the dependence of Chinese regulation authorities.
Six months option was related to the period form February 18th to August 18th 2008. However, in August 2008 the term was prolonged for more six months to February 2009.
Now it was moved by another half-year. In this period Evraz Group has to get the permission of different Chinese regulation authorities.
(Source: BFM.RU)
Update on consolidation plans in Chinese steel sector - 21 Feb 2009 Bloomberg quoted China Iron and Steel Association said Baosteel Group Corp., China’s biggest steel producer, will take over two rivals as part of the nation’s plan to create bigger steelmakers to gain bargaining power for iron ore.
Mr Chi Jingdong the association’s secretary general, told an industry group in a closed meeting recently that Baosteel will take over Ningbo Iron & Steel Group and Baotou Iron & Steel Group.
Mr Chi said the government will also push Anben Steel Group, China’s fourth biggest, to merge with Panzhihua Iron & Steel Group, while Taiyuan Iron & Steel Group, the biggest stainless steelmaker, will combine with rivals in Shanxi.
He said that the nation’s top five steelmakers will lead the government’s consolidation plan with their capacity eventually making up more than 45% of China’s total output in three years.
Mr Chi said the plan, approved by the State Council on January 14th is pushing industry consolidation more aggressively than a government guideline announced in July 2005 after contract iron ore prices gained for six straight years to a record because of Chinese demand. The aim is to create steelmakers with annual capacity of 50 million tonnes a year by 2011. He said that the biggest producers are already expanding capacity at plants along the coast including Zhanjiang, Fangcheng Port and Rizhao, Chi said. Steel plants in coastal areas should make up 20 percent of the nation’s total capacity by 2011.
The document said China will also shut down 25 million tonnes of obsolete steelmaking capacity and 72 million tonnes of iron making capacity. Blast furnaces smaller than 400 cubic meters should be closed raising the cut-off threshold from 300 cubic meters the government had set in July 2005.
The China Business News reported that Baosteel set up an alliance in July 2007 with Baotou Steel to help the Inner Mongolia-based mill improve production and develop iron ore, rare earth and coal resources, in preparation for a takeover. Baosteel had also been in talks to buy stakes in Ningbo Iron & Steel Co.
Mr Luo Wei a Shanghai-based analyst with China International Capital Corp said “The global recession will help speed up industry consolidations. Boosting the concentration will increase steelmakers’ profit and their pricing power.”
(Sourced from Bloomberg)
Anglo American announces 2008 results - 21 Feb 2009 Global mining major Anglo American has announced underlying earnings of USD 5.2 billion for 2008.
Highlights
1. Group operating profit of USD 10.1 billion, with operating profit from core operations up by 10% to USD 9.8 billion
2. Total Group underlying earnings of USD 5.2 billion down by 9%
3. Significant input cost pressures partially mitigated by cost savings of USD 348 million
4. Year end net debt of USD 11.0 billion
5. 17% improvement in Lost Time Injury rates, with trend continuing
6.33% reduction in the number of fatalities
Downsizing deals - OneSteel may cut more jobs - 21 Feb 2009 It is reported that OneSteel has slashed its workforce by 650 in the past 3 months and is flagging more cuts as it braces for the downturn to worsen.
Mr Geoff Plummer CEO of OneSteel said that forced redundancies had been limited, but 650 employees and contractors had been cut since November, mainly from the manufacturing businesses.
He added that "What we have to do is be honest with workers and say there is almost a certainty there will be more. The expectation is that we haven't seen the worst of the downturn."
Mr Plummer said that "We expect global and regional steel markets to continue to be weak, with prices and demand suppressed until signs of an international recovery are clear. While I expect there will be a reduction in contract prices, it won't necessarily be as large as people were speculating back in October, November."
A further 150,000 tonnes of fourth quarter production cuts from OneSteel's electric arc furnaces at Laverton and Sydney were also announced, adding to a 300,000 tonne reduction announced in January. Following the cuts, annual production from the furnaces will be about 850,000 tonnes, down from 1.3 million tonnes.
OneSteel said that its first half profit had tripled from a year earlier, but a sharp downturn in November and December 2008 had severely affected the result and dividends would be cut. First half net profit rose from USD 64 million to USD 228 million, while the interim dividend was reduced from 8 cents to 6 cents. It was expecting a small rise in full year profit from USD 315 million in 2008 to between USD 325 million and USD 375 million in 2009. That was slightly down on the previous consensus of about USD 385 million.
(Sourced from www.theaustralian.news.com.au)
Chinese steel prices fall for 2nd week on poor demand - 21 Feb 2009 Reuters reported that Chinese spot steel prices fell 4.7% in a second consecutive weekly drop, ending a two-month rally, as increased production in the absence of a strong demand recovery depressed prices.
China, the only major market where spot steel prices have risen in recent months, spurred by a government spending plan that runs into nearly USD 600 billion, is now joining other markets as demand continues to remain weak.
A trader said that "Actual demand remains very depressed and inventory is building up again price gains so far appear to be driven by recovery expectations, which have yet to materialize.
Goldman Sachs analysts said "Near panic conditions seem to prevail in the spot markets as the usual post-Chinese New Year demand has failed to materialize this year."
China, the world's biggest steel producer and consumer, recently boosted output, encouraged by the government spending plan and increased imports of iron ore, driving global ocean freight rates But the rally, which boosted prices by more than 30% between late November and the first week of February, when China returned from a week-long Lunar New Year holiday, has fizzled out in the absence of strong post-holiday demand.
(Sourced from Reuters)
CAPEX cuts - Eramet slashes plan by 54% on tough market - 21 Feb 2009 Reuters reported that French nickel and manganese group Eramet has decided to slash planned spending for this year by over half as it sees market conditions remaining very difficult in the early part of 2009.
Eramet said that it is now targeting capital expenditure this year of EUR 336 million, down by 54% from its initial objective of EUR 736 million. It added that "This figure could be revised downward in 2009 depending on how the crisis evolves."
Eramet reiterated targets to reduce nickel and manganese output in the coming months, adding it will continue to adjust manganese output to demand throughout the year. It said that "In the short term, the ongoing economic downturn and substantial inventory reductions continue to weigh on our markets."
For nickel, it plans to cut annual production to 50,000 tonnes in 2009, down from 51,000 in 2008 which was already 14% lower than in 2007. In manganese, Eramet will in the first quarter reduce ore production to 40% of capacity and alloy output to 35% of capacity. The group's alloys division, meanwhile, has been affected by difficulties in the aeronautics sector and it is preparing adjustment measures.
(Sourced from www.reuters.com)
Qualified Chinese coke exporters list of 50 firms for 2009 - 21 Feb 2009 Chinese Ministry of Commerce has added Gansu Rich Trading Co Ltd. to qualified coke export enterprise list for 2009.
MoC announced the list of enterprises that are qualified for coke export license in 2009 on its website in last year end, based on criteria for coke export license application released earlier.
The qualified enterprise list is as follows
A) General Trade Exporters
1. Traders
2. Sinochem Corporation
3. Sinosteel Corporation
4. China Minmetals Corporation
5. China Coal & Coke Holdings Limited (CNCCoke)
6. Shanxi Minmetals Industrial & Trading Co Ltd
7. Shanxi Resources International Corp.
8. China-Brazil (Shanxi) Trading Co Ltd
9. Baosteel Resources Co Ltd
10. Shanxi Dajin International (Group) Co Ltd
11. Shanxi Sanlian Zhengfeng International Trading Co Ltd
12. Shanxi Zhongrui Trading Co Ltd
13. Shanxi YuanXiang Coal & Coking Co Ltd
14. Beijing Zhonya Fuli International Trading Co Ltd
15. Shanxi Antai International Trading Co Ltd
16. Beijing Wukuang Liguo International Trading Co Ltd
17. Tianjin Zhouli Coke & Chemicals Co Ltd
18. Tianjin General Nice Coke & Chemical Co Ltd
B) Producers
1. Shanxi Tianli Enterprise Co Ltd
2. Shanxi Provincial Jinkang Imp. & Exp. Group Corp., Ltd
3. Xiaoyi Jinhui Coal & Coke Co Ltd
4. Shanxi Datuhe International Trade Co Ltd
5. Qingdao Coking & Gas-Making Co Ltd
6. Xiaoyi Jinyan Power Coal Chemical Industry Co Ltd
7. Shanxi Xinshen Coking Co Ltd
8. Shanxi Tongzhou Trading Co Ltd
9. Shanxi Coking Co Ltd.
10. Shanxi Coke Group International Trade Co Ltd
11. Risun Holding Co Ltd
12. Shanxi Yaxin Coking Co Ltd
13. Taiyuan Gengyang Industry Group Co Ltd
14. Shanxi Taixing Group Co Ltd
15. Shanxi Maosheng Coal Chemistry Croup Co Ltd
16. Shanghai Coking & Chemical Corporation
C) Recommended Western Enterprises
1. Xinjiang International Industry Co Ltd
2. Sha'anxi Richbond Imp. & Exp Industrial Co Ltd
3. Xinjiang Dahuangshan Hongji Coking Co Ltd
4. Ningxia Evergreen Trading Co Ltd
D) Border Trade Exporters
1. Hekou Kungang Imp. & Exp. Co Ltd
2. Yunnan Xishuangbanna Foreign Economic Trade Co Ltd
3. Yanbian Tianchi Industry and Trade Co Ltd
4. Yanbian Haihua Imports & Exports Trade Co Ltd
5. Dandong Hongxiang Industrial Development Co Ltd
6. Dandong Zhongwei Industrial & Trading Co Ltd
7. Guangxi Yueqiang Import and Export Co Ltd
8. Guangxi Longzhou General Border Trading Co Ltd
9. Alashankou Xinke Co Ltd
10. Xinjiang International Industry Co Ltd
11. Xinjiang Dahuangshan Hongji Coking Co Ltd
12. Wujiaqu Xinken Commercial & Trading Co Ltd
(Sourced from.Mysteel.net)
Visit www.Mysteel.net for real time access to China steel news!
Stimulus plans - Unions pitch for Buy Australian Steel clause - 21 Feb 2009 It is reported that Australian federal government has passed an AUD 42 billion stimulus package with no clauses within specifying only Australian materials can be used in infrastructure projects.
But Australian Manufacturing Workers Union has been agitating for infrastructure projects to use only locally made steel, in a mirror of the proposed protectionism being touted in the US stimulus package.
The unions said that the revived campaign would aim to combat the rising local unemployment rate, which was recorded at 4.8% in January 2009, with estimates it will climb to 7% by the middle of 2010.
Critics of the buy local campaigns claim any such moves would start a slippery slope to the bottom, as other countries adopt similar trade barriers to protect their own economies. However, supporters claim trade protectionism is a small threat, since government consumption makes up only a tiny fraction of worldwide trade.
(Sourced from www.metalworker.com.au)
Downsizing deals - Anglo American cuts 19,000 Jobs - 21 Feb 2009 Anglo American announced that, under its initiative to counter slowdown, it would undertake 19,000 job cuts
Siemens receives meltshop order from Xingtai in China - 21 Feb 2009 Siemens VAI Metals Technologies received a contract from the Chinese steel producer Xingtai Iron & Steel Corp Ltd for engineering and the supply of key equipment for a 50 tonne capacity AOD stainless steel converter, a ladle furnace of the same capacity and a 4 strand billet caster.
These plants will be part of a new production facility being built at Xingtai in Hebei Province which will enable the company to enter the stainless- and special-steel market for long products. The total order volume is a two-digit-million-euro figure. The new meltshop is scheduled to start up in June 2010.
Xingtai Steel, a medium-sized Chinese steel producer, has a current annual production capacity of approximately three million tons of low-allow and high-carbon steel grades. The company is the largest producer of specialized high-quality wire and rod in China and also supplies special steel components to the industry, including the automotive sector.
The scope of supply for the AOD converter includes the engineering and the supply of core components such as the tilting drive, valve station, rotary joint, tuyeres and special hydraulic components. Level 1 and Level 2 automation, including the metallurgical process model for stainless production, will also be provided. Special plant features include the VAI-CON Simple suspension system, a top lance and individual tuyere control.
Engineering and key components will be supplied for the ladle furnace as well, including the current-conducting electrode arms, the high-voltage electrical system, hydraulics, Level 1 and Level 2 automation in addition to a metallurgical process model.
The billet caster is designed to cast approximately 500,000 tonnes of stainless and special steel grades per year, also for ESR applications. In addition to engineering and automation, Siemens VAI will supply special equipment and technological packages. These include LevCon for the precise control of the steel level in the mold, DynaFlex for the online hydraulic adjustment of the mold-oscillation parameters, and Diamold mold tubes in support of high-speed casting. Air-mist cooling will be provided for optimized strand cooling. Mold and final EMS will ensure a fully homogenized steel composition with minimum strand segregation.
Also for this project Siemens Ltd., China will be responsible for the local manufacturing and supply of certain key components for the AOD converter and ladle furnace in addition to electrical equipment and Level 1 automation for the meltshop.
Siemens VAI had previously supplied components for one LD converter, two ladle furnaces, two billet casters and five long-product rolling mills to Xingtai and also upgraded two of the company's existing casters.
CISA votes Mr Deng Qiling as New Chairman - 21 Feb 2009 It is reported that Mr Deng Qiling, GM of Wuhan Steel is picked as the new Chairman of China Iron & Steel Association instead of the predecessor, Mr Zhang XiaoGang GM of Anshan Steel, the result came out recently on the annual conference of CISA council.
Mr Deng 57 years old is a metallurgical engineering major graduated from Wuhan University of Science and Technology. He started as a mechanic of Wuhan Steel in 1970 and was promoted as the GM of the mill at the end of 2004. He said that to enhance industrial concentration is a required cause right now for China's steel industry.
As per the lately authorized revitalization plan on steel industry, China is to bolster the industrial merge and regroup, aiming to push the capacity of Top 5 mills up to over 45% of the total. And there will be several 50 million tonnes per year super steelmakers and some 10 million tonnes per year 30 million tonnes per year large steelmakers in China by 2011.
In 2009, CISA will mainly stabilize domestic steel market, execute the revitalization plan and further regulate the iron ore import market, Deng notes. And in the past two years, CISA, which was under the lead of Zhang, had corrected the statistics of steel prices and focused on framing the iron ore import.
(Source: dycj.ynet.com)
Production pruning - Nikopol Ferroalloy to restart 3 furnaces - 21 Feb 2009 Ukraine’s largest ferroalloys producer Nikopol Ferroalloy Plant announced that the company has restarted its three furnaces' production, which is its No 3, No 13 and No 15 furnace.
The company is resuming its production gradually, because the demand has improved.
NZF has planned to increase its ferroalloy production by 64% in this February which is 30,100 tonnes, whereas the company's output in January was only 18,300 tonnes. Now, NFZ has six furnaces running for operation and their major products are ferromanganese and ferrosilicon.
Downsizing deals - US Steel to lay off 590 at Minntac Mine - 21 Feb 2009 Star Tribune reported that US Steel has announced that it will lay off 590 workers and idle two additional lines at its Minntac Mine in Mountain Iron Range, nearly half the plant's workers. The cuts include 500 union jobs and 90 management positions. The layoffs will occur over the next few weeks.
It was US Steel's second production cutback in Minnesota since early December, when it stopped work at its smaller Keetac taconite plant in Keewatin.
It will affect two of the Mountain Iron plant's five taconite production lines, increasing the number idle to three.
Ms Courtney Boone spokeswoman of US Steel said that the layoffs are due to decreased orders and a weak economy. She added that the layoffs are temporary and workers could return if the market improves.
At full production, the Minntac plant produces 16.5 million tons of taconite a year and has about 1,070 union workers and 180 managers.
(Sourced from Star Tribune)
OZ Minerals breakup fee no barrier to new bids - 21 Feb 2009 OZ Minerals Ltd is putting up few barriers to a higher bid after accepting China Minmetals Corp’s AUD 2.6 billion takeover offer.
According to the Melbourne based company’s statement published, state owned Minmetals, the nation’s biggest metals trader, would get a AUD 25.8 million fee if OZ Minerals abandons the deal.
Mr Evy Hambro a managing director at BlackRock Investment Management Ltd. in London said that the penalty payment is small and would not stand in the way of another bidder.
According to data compiled by Bloomberg, OZ’s breakup fee is within the 1% to 2% range typical in deals recommended by the target company.
Mr Charles Kernot an analyst at Evolution Securities Ltd.Kernot said that “There are a lot of distressed assets out there and only a few companies with strong balance sheets, BHP being the obvious contender,” Kernot said today by telephone from London. “It would make sense for them to look at every company that is put into play.”
OZ Minerals’s assets include Century, the world’s second largest open pit zinc mine, in Queensland, the Prominent Hill copper and gold mine in South Australia, the Sepon copper and gold project in Laos and the Golden Grove copper and zinc mine in Western Australia. The Minmetals offer allows potential buyers to figure out values for each of the projects.
(Sourced from Bloomberg.net)
Formosa Plastics to start building steel mill in Vietnam by 2009 end - 21 Feb 2009 It is reported that Formosa Plastics Group is expected to break ground to build a large steel mill in Vietnam at the end of 2009. Vietnamese government signed a land handover contract with the FPG.
The agreement said that the Vietnamese government will hand over 1,900 hectares on February 28th 2009 to the FPG to build a large steel mill, and another 1,300 hectares at the end of this year for the FPG to build petrochemical complex. Building the first stage of the steel mill will cost the FPG at least USD 8 billion.
The Vietnamese government has allowed the FPG to rent the land totaling 3,200 hectares for 70 years at the price of TWD 180 million. The massive investment project shows the FPG is not slowing down amid the economic slowdown. The FPG will first build an industrial harbor near the acquired land to ship products from the prospective steel mill.
The FPG estimates the establishment of the first blast furnace in the steel mill will be completed in 36 months, and predicts the first stage construction of the steel mill will be completed and begin mass production in 50 months.
(Sourced from news.cens.com)
Downsizing deals - Union warns of 50,000 job losses in SA - 21 Feb 2009 The head of South Africa's most powerful union has warned that up to 50,000 jobs could be lost in the country's mines this year through the financial crisis. As per report thousands of jobs are already under threat, in an industry that earns ZAR 40 billion a year and employs 500,000 workers as demand for commodities falls.
Mr Frans Baleni General Secretary of the National Union of Mineworkers said that "We predict there will be between 20,000 and 50,000 job losses this year. A strike is always a tool for workers to fight job losses, but we have yet to decide what to do. I will be presenting a 10 point action plan to the union executive committee on Thursday and Friday."
Mr Baleni could not yet give specifics on which mines would see the biggest cuts or how the losses would be spread across the industry.
Mr Baleni's words came as junior gold miner, Simmer and Jack, was hailing a compromise brokered at the CCMA, South Africa's independent arbitration body which saved more than 400 jobs at the company's Buffelsfontein operation.
(Sourced from Platts)
Chinese SBQ plate outputs top 20 million tonnes in 2008 - 21 Feb 2009 Statistics of CISA shows that China accumulatively yielded 20.14 million tonnes of shipbuilding plate in 2008 up by 62%YoY or 7.71 million tonnes from the year earlier. And the outputs posted at about 1.24 million tonnes last December up by 3.85%YoY or 45,000 tonnes.
Last year, domestic market met with a large fluctuation in shipbuilding plate prices. Under the situation, the plate output falls to low growth or negative growth since the H2 of last year.
But the yearly output of shipbuilding plate still made a big growth and surpassed 20 million tonnes based on the high yield in the 1st half of 2008 and productions from Baosteel Luojin project and Anshan Steel Bayuquan Project.
This result just happened in a year after 2007 when the output broke the bottleneck of 10 million tonnes.
(Source: China Ship News)
EAIF to fund tube mill in Algeria - 21 Feb 2009 It is reported that Emerging Africa Infrastructure Fund is financing the Olkaria III geothermal power project in Kenya and a steel pipe factory called SPA Maghreb Tubes in Algeria.
EAIF said that they will be providing USD 22 million financing for two projects.
Olkaria III is a 48 MW geothermal power plant located in Kenya and the deal is the first privately funded and developed geothermal project.
(Sourced from www.emergingafricafund.com)
Mitsubishi to acquire 33.4% stake in Strant Minerals - 21 Feb 2009 Reuters reported that Mitsubishi Corporation would take a 33.4% stake in Indonesian nickel developer Strant Minerals (Indonesia) Pte from French nickel and manganese group Eramet SA for USD 145 million.
Mitsubishi said that Eramet SA will hold the remaining 66.6% of Strant. Mitsubishi and Eramet will jointly conduct a feasibility study on the development of the mine.
It added that the two firms aim for annual production of up to 65,000 tonnes from the mine, which contains 5.1 million tonnes of nickel ore resources.
(Sourced from www.reuters.com)
PT Krakatau Steel sees its sales falling by 17% in 2009 - 21 Feb 2009 PT Krakatau Steel expects sales to fall by 16.8% YoY in 2009 due to declining prices and demand amid the global economic slump.
Mr Taufik Kurahman chief commissioner of Krakatau said that its sales are expected to fall to IDR 15.8 trillion in 2009 from IDR 19 trillion in 2008. He added that "We expect sales to be moderate this year due to the economic downturn."
In 2008, its unaudited net profit rose by 47% to IDR 462.5 billion, up by 6% as compared with a net profit of IDR 314 billion in 2007.
Mr Fazwar Bujang director at Krakatau said that it planned to push ahead with its new USD 70 million steel mill in South Kalimantan Province, with construction expected to start next month. He added that it had already secured financing for the project, 70% of which would be provided by
(Source from www.thejakartaglobe.com)
Semirara plans to export 2.5 million tones of coal in 2009 - 21 Feb 2009 It is reported that Philippine coal producer Semirara Mining Corporation plans to export 2.5 million tones of coal this year.
Mr Cesar Villanueva MD told reporters that Semirara would export coal to India and Thailand. He said Semirara Mining aimed to raise production to 5 million tonne this year, with half of the output to be sold in the local market and the other half to be shipped out.
An official earlier said the company was focusing its attention on India, China and Hong Kong for the coal exports. Semirara had exported some 800,000 tonne to the three markets.
Mr Villanueva said that Semirara had started exporting coal to India by batches of around 50,000 tonne per shipment.
He added that the company bought new equipment to increase its production volume target this year, which is about 50% higher than 3 million tonne in 2008. He further added that declining oil prices in the world market had cut down local coal prices by 30%
Semirara’s local customers, meanwhile, include Global Power, a member of the Metrobank Group of Companies, Mindanao coal plant owned by STEAG State Power, Aboitiz Group Asia-Pacific Energy Corp., majority-owned by Formosa Heavy Industries Corp. of Taiwan, cement plants and other companies.
(Sourced from Manila Standard)
Russian mills reduce HRC export offers to Middle East - 21 Feb 2009 It is reported that Russia has further lowered the export price of HRC for Middle East market by USD 15 per tonne to USD 50 per tonne at USD 375 per tonne to USD 450 per tonne level in order to cope with less orders from China.
However, end buyers of flat products in Middle East tend to buy directly from local stockiest on small quantities rather than directly import from overseas when they are in urgent needs.
In comparison, Russian cold rolled steels arrived in April price is about CFR USD 500 per tonne to USD 600 per tonne while local mill keeps at USD 600 per tonne.
(Sourced from YIEH.corp)
Mexican section steel market on downward trend - 21 Feb 2009 It is reported that Mexico's section steel market saw a comparatively slight downward trend. Current prices are prevailing at around USD 830 per tonne.
Demand rose in January as buyers started to replenish stocks. However, it seems that the real demand will not arrive before the stimulus package to be presented by the government in the next half year.
(Sourced from YIEH.corp)
Exxaro trading statement for 2008 - 21 Feb 2009 South African Exxaro announced that it’s coal business is expected to deliver a substantial improvement in net operating profit for the period under review as strong demand resulted in higher sales at improved average prices when compared to the corresponding period in 2007.
Its release said that “The mineral sands business will report a consolidated net operating profit as improved results from the KZN Sands operation and a first contribution from Namakwa Sands, subsequent to its acquisition effective from October 1st 2008, are expected to offset an operating loss in the Australia Sands operation. The base metals business is expected to report a net operating loss due mainly to significantly lower average zinc prices and an increased environmental rehabilitation provision at the Zincor refinery.”
It added that “Exxaro’s attributable earnings which include the group’s equity accounted earnings from its 20% shareholding in Sishen Iron Ore Company Ltd also incorporates the financial results of its 26% interest in Black Mountain Mining Ltd from November 1st 2008. Attributable earnings for the period under review are expected to be substantially higher at between ZAR 3 365 and ZAR 3 415 million, with attributable earnings per share being between 981 cents and 997 cents, despite the group’s equity accounted share of the operating loss and an impairment of assets incurred in Black Mountain Mining Ltd. Exxaro reported attributable earnings of ZAR 1 427 million or 418 cents per share for the corresponding period ended December 31st 2007.”
The release also said that “Headline earnings, which exclude the impairment of assets in Black Mountain Mining Ltd are expected to be between ZAR 3 585 million and ZAR 3 635 million or 1 045 cents and 1 060 cents per share, compared to ZAR 1 448 million or 425 cents per share reported for the corresponding period ended December 31st 2007.”
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