It is reported that JSW Steel has commissioned a new 3 million tonnes per annum BF at its Vijaynagar plant to enhance its capacity to 7.8 million tonnes, which includes 1 million tonnes at its Salem unit.

As per report, the new blast furnace is the largest in the country by capacity with volume of 4190 cubic meter. It is built with the technology from Siemens VAI of UK. The furnace operates with high top pressure of 2.5 bar and high hot blast temperature of 1250 degree celsius which ensure maximum coal injection and energy saving. The Furnace has the biggest blowers of 40 MW from Man Turbo of Switzerland.

This project has been commissioned in 31 months, one of the shortest durations, claimed the company. Over 20,000 people worked at the site during the peak of the project.

Mr Sajjan Jindal vice CMD of JSW said that “With the commissioning of the largest blast furnace, JSW Steel has become the leading steel producer. In this economic slowdown, the commissioning of the expansion project is a giant step towards making India proud.”

JSW Steel had earlier put on hold the commissioning of the new blast furnace for six months.

JSW is also reported to be in the advance stage of setting up a 5 million tonne per annum HSM, which will be commissioned in the second half of the 2009-10.

Go to News Title Go to Top

Indian Steel price Index remains stable

- 19 Feb 2009

The domestic Indian Steel Prices Index exhibited nominal correction on February 18th 2009. The Indian Long Product Price Index (ILPPI) dipped by 5 points whereas the Indian Flat Product Price Index (IFPPI) rose by 12 points. The overall Indian Steel Price Index (INDSPI) crept by 3 points

Class	17-Feb	18-Feb	Change
ILPPI	6660	6655	-5
IFPPI	6538	6550	12
INDSPI	6601	6605	3

ILPPI - Long Product Price Index
IFPPI - Flat Product Price Index
INDSPI - Indian Steel Price Index

Long Products

Category	17-Feb	18-Feb	Change
PI - TMT	6445	6438	-7
PI - WRC	7139	7129	-11
PI - Angle	6291	6286	-4
PI - Channel	6307	6331	23
PI - Joist	5873	5887	14

Flat Products

Category	17-Feb	18-Feb	Change
PI - Narrow Plates	6164	6164	0
PI - Wide Plates	6584	6592	9
PI - Hot Rolled	6378	6393	16
PI - Cold Rolled	7086	7099	13
PI - Galvanized	6780	6786	6

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)

Go to News Title Go to Top

Mr Paswan appeals to steel makers to complete their projects

- 19 Feb 2009

Mr Ram Vilas Paswan minister for Steel, Chemicals & Fertilizers has appealed to all steel makers to complete their ongoing and planned projects as per schedule so that they are ready to reap maximum benefit of the upturn in demand that will follow the current economic slowdown.

Mr Paswan at the 2nd Summit on Mining to Steel Making organized by the Indian Chamber of Commerce said that “The Indian steel industry backed by a resurgent Indian economy will grow from strength to strength. The country has natural resources, the skill base, technological acumen and the financial capability to make steel industry a centre piece of Indian economic achievements.”

He said that “I thank the Indian Chamber of Commerce for inviting me to address this gathering of distinguished professionals and experts in mining and steel sector. The timing of this meeting is significant because we have assembled at a time when the steel industry the world over is faced with deceleration in sharp contrast to the long period of sustained upswing and financial prosperity.”

Mr Paswan told that “On the supply side, the liquidity crunch and deceleration in steel demand growth has also negatively impacted steel investors sentiments. This may lead to delayed start for some of the green field steel projects over the short run. However, I am proud to say that the PSUs under my Ministry have decided to go full steam ahead on their investment plans. On the positive side, the current economic crisis would have a cooling effect on the over heated global market of technology suppliers thereby bringing down the overall cost of capacity expansion.”

Mr Paswan urged that “I would therefore appeal to all steel makers and prospective investors to make use of this opportunity and complete your ongoing and planned projects as per schedule so that you are ready to reap maximum benefit of the upturn in demand that will follow the current slowdown. I am sure that in not so distant a future, the Indian steel industry backed by a resurgent Indian economy will grow from strength to strength. We have the natural resources, the skill base, technological acumen and the financial capability to make this industry a centre-piece of Indian economic achievements. The underlying conditions that make us hopeful about the impending upturn in the Indian macro-economy also holds good for the Indian steel economy.”

Go to News Title Go to Top

KL Group expands presence to Southern Region

- 19 Feb 2009

Northern Region market leader in steel structurals, Ghaziabad based KL Group has announced launch of their new unit at Gummidipoondi near Chennai in India on February 20th 2009.

The new unit by the name of KL Concast Private Limited Unit-II is equipped with steel making facilities, bloom & billet caster and section rolling mill with annual capacity of 150,000 tonnes per annum.

The unit will produce following sections
1. Angles - 90x90x6 to 200x200x25
2. Channels - 125x65 to 400x100
3. I Beams - 150x75 to 500x180
4. H Beams - 150x150 to 250x250

Mr Parikshit Bardeja director of KL Group, while informing SteelGuru about the launch told that the new unit would cater to Southern India, which is a fast growing market for sections as well to niche overseas markets because of its proximity to the port.

KL Group is in the business of construction steel for over 40 years and has production capacity exceeding 450,000 tonnes per annum of various sections through its units at Ghaziabad and two units at Mandi Gobindgarh. Its existing units produce various sections like joists, channels, equal angles, H beams, T Sections and command leadership position in North India. It also produces narrow HR strips and black & galvanized ERW pipes.

Go to News Title Go to Top

Mixed price movement for pencil ingot

- 19 Feb 2009

Pencil Ingot shows mixed movement with dip in Mumbai and Kanpur by 2% but mild correction in Mandi, Muzzafarnagar and Ghaziabad by up to 1%.

Location	Change	%
Mumbai	-400	-1.8%
Mandi	181	0.8%
Raipur	0	0.0%
Kanpur	-436	-1.9%
Kolkata	0	0.0%
Ghaziabad	100	0.4%
Muzzafarnagar	174	0.8%
Ahmedabad	0	0.0%

Change is on February 18th as compared to February 17th 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)

Go to News Title Go to Top

Steel ministry pitches for higher import duty

- 19 Feb 2009

BS quoted Mr Ram Vilas Paswan Steel minister as saying that the union steel ministry has recommended an increase in steel import duty from the current 5% to safeguard the domestic industry from cheaper imports. While not mentioning the exact recommendation, the industry has demanded a 15% duty.

Mr Paswan said that “Apart from the adverse fall out of lower domestic demand, the Indian producers are also faced with the problem of intense global competition from cheap imports. The 5% duty imposed in October is not sufficient.”

He said that the sharp fall in international prices of steel and higher prices of imported inputs such as coking coal have added to the woes of the Indian producers.

(Soured from Business Standard)

Go to News Title Go to Top

Rebar (TMT) and section steel prices weaken in North and West

- 19 Feb 2009

Prices of longs dipped in Delhi, Ahmedabad, Raipur and Mandi on February 18th 2009. Bangalore was the sole exception where the prices appreciated by up to 5% on buying pressure.

Indore

Item	Grade	Size	Change	%
TMT	Fe 415	12mm	-500	-1.5%
ANGL	GR A	65x6	-200	-0.6%
CHNL	GR A	75/100	-200	-0.6%
JSTI	GR A	250x125	0	0.0%

Change is on February 18th as compared to February 17th 2009
Change is in INR per tonne

Ahmedabad

Item	Grade	Size	Change	%
TMT	Fe 415	12mm	0	0.0%
ANGL	GR A	65x6	-459	-1.6%
CHNL	GR A	75/100	-459	-1.6%
JSTI	GR A	250x125	0	0.0%

Change is on February 18th as compared to February 17th 2009
Change is in INR per tonne

Delhi

Item	Grade	Size	Change	%
TMT	Fe 415	12mm	-334	-1.0%
WRC	SWR14	5.5/6	0	0.0%
CHNL	GR A	75/100	0	0.0%
JSTI	GR A	250x125	0	0.0%

Change is on February 18th as compared to February 17th 2009
Change is in INR per tonne

Kanpur

Item	Grade	Size	Change	%
TMT	Fe 415	12mm	-500	-1.5%
ANGL	GR A	65x6	-200	-0.6%
JSTI	GR A	250x125	-700	-2.1%
WRC	SWR14	5.5/6	-261	-0.9%

Change is on February 18th as compared to February 17th 2009
Change is in INR per tonne

Raipur

Item	Grade	Size	Change	%
ANGL	GR A	65x6	-208	-0.7%
CHNL	GR A	75/100	-208	-0.7%
JSTI	GR A	250x125	-208	-0.7%
WRC	SWR14	5.5/6	0	0.0%

Change is on February 18th as compared to February 17th 2009
Change is in INR per tonne

Mandi

Item	Grade	Size	Change	%
ANGL	GR A	65x6	-520	-1.5%
CHNL	GR A	75/100	-520	-1.5%
JSTI	GR A	250x125	624	1.8%

Change is on February 18th as compared to February 17th 2009
Change is in INR per tonne

Bangalore

Category	Grade	Size	Change	%
ANGL	GR A	65x6	1000	3.3%
CHNL	GR A	75/100	1500	4.8%
JSTI	GR A	250x125	1000	3.1%

Go to News Title Go to Top

Plate and HR Coils prices exhibit firmness in North India

- 19 Feb 2009

Prices of flat products remained stable on February 18th 2009, except for some firmness at Indore, Ludhiana and Kanpur.

Indore

Category	Grade	Size	Change	%
Narrow Plates	GRA	5-10x1.25	0	0.0%
Wide Plates	GRB	12-20x2.5	0	0.0%
Hot Rolled	Tube	2x1250	0	0.0%
Cold Rolled	DSK	0.8	436	1.4%
Galvanized	100Gms	0.63	2179	6.6%

Change is on February 18th as compared to February 17th 2009
Change is in INR per tonne

Ludhiana

Category	Grade	Size	Change	%
Patra			272	1.0%
HRC	Tube	2.5x1250	-91	-0.3%

Change is on February 18th as compared to February 17th 2009
Change is in INR per tonne

Kanpur

Category	Grade	Size	Change	%
Narrow Plates	GRA	8x1.25	0	0.0%
Wide Plates	GRB	12-20x2.5	349	1.2%
Hot Rolled	Cold Roll	2x1000	349	1.2%
Cold Rolled	DSK	0.63x1000	436	1.3%
Galvanized	100Gms	0.40	174	0.5%

Go to News Title Go to Top

JSW Energy bags power performance award

- 19 Feb 2009

Mr. S. S. Rao, Joint Managing Director and CEO, JSW Energy receiving award from Hon'ble President Mrs. Pratibha Patil and Union Minister of Power Mr. Sushilkumar Shinde
Mumbai, February 17, 2009:

JSW Energy, part of the JSW Group added yet another feather to its cap by bagging the Ministry of Power instituted prestigious Thermal Power Station Performance Award 2007-08 for the second successive year.

The Hon’ble President Mrs Pratibha Patil today handed over the glittering Bronze Shield for the 3rd best Thermal Power Station Performance Award to Mr SS Rao joint MD &CEO of JSW Energy at a function at the Vigyan Bhawan in New Delhi.

JSW Energy’s Toranagallu Thermal Power Station in Bellary district of Karnataka was the only private sector power utility among 6 awardees to be selected by the Central Electricity Authority recognizing its meritorious performance.

Mr Rao said that “It is a proud moment for me to receive this prestigious award from the Hon’ble President on behalf of JSW Energy. The annual award is given by the CEA for Best Thermal Power Station Performance. Ministry of Power has instituted this comprehensive award scheme since 2004-05 to promote recognizing meritorious performance of power utilities in the country. “

Mr Rao said that “This award is given to promote competitive performance amongst power plants based on all round performance by integrating the operational parameters including heat rate, auxiliary power consumption, specific oil consumption, specific fuel consumption and PLF.”

He added that “Monthly data is being furnished by the plant to CEA for their monitoring. The evaluation criteria for these awards are actual performance vis-à-vis design data so as to bring all stations at a common platform. Last year we had been awarded Bronze shield for performance for the year 2006-07 and this year also we have been awarded Bronze Shield for the performance for the year 2007-08.”

JSW Energy Ltd is the first Independent Power Producer to be set up in the state of Karnataka. The company has set up 2 units of 130 MW each and both units are generating power using Corex gas and coal.

Go to News Title Go to Top

Essar Steel Algoma posts proposal for comment on environmental registry

- 19 Feb 2009

According to Jeff Arbus media contact for the local environmental steering committee, "Both the Ministry and the company have referred to increasing their commitment of transparency and their commitment to the public and this is not an example of that."

According to the environmental registry entry at http://www.ebr.gov.on.ca, the reference to a lack of transparency refers to the fact that Essar made no mention of pollution controls in their most recent instrument proposal on the environmental registry. Essar is seeking an amendment to an existing Certificate of Approval to operate No 3 Plate Heat Treat Furnace. This works will emit products of combustion from natural gas into the atmosphere such as particulate matter and nitrogen oxides.

However, the proposal was posted without fanfare on February 6th 2009. The public has 30 days from that time or until March 8th 2009, to ask questions or submit comments.

Sault This Week did not receive a release from the MOE, nor from Essar, nor from Essars' community liaison committee, notifying the public that Essar was posting this proposal on the Ontario Environmental Registry for public comment. Sault This Week learned of the proposal from Arbus.

By the time STW had learned of the proposal from Arbus, a week had already passed. At that point Brenda Stenta, Essar Steel's manager corporate communications and Bruce Cave, senior environmental officer with the MOE were e-mailed requests on Friday morning, for information regarding this proposal, what a heat treat furnace is, what type and volume of pollution it would create, and what, if any, pollution controls would be put in place.

Cave responded by e-mail, "My understanding is that the furnace is used to heat treat various types of metal to customer specification. You may wish to contact the company for further information. The amount of emissions from the furnace will depend on the level of operation. Following the public comment period on the company's proposal, the Ministry will review the company's proposal along with all public comments submitted before making a decision on the application. Our review will look at determining if the company's proposal will meet the Ministry's strict air standards. The Ministry has in place stringent standards that are based on levels that are safe and protective of the environment and human health and to prevent adverse impacts. It is required to meet these emission standards and the ministry will review the company's proposal to ensure that any approval protects public health and the environment."

(Sourced from saullthisweek.com)

Go to News Title Go to Top

Slowdown signs - Shortfall is likely in Indian trade target

- 19 Feb 2009

PTI reported that India will not achieve the USD 200 billion trade target fixed for the current fiscal but the government and the RBI are closely monitoring both domestic and international economic developments.

Mr Ashwani Kumar minister of State for Industry said that "The global economic downturn has impacted exports. We expect to achieve USD 170 billion to USD 175 billion exports."

Mr Kumar said that the government had set a trade target of USD 200 billion for 2008-09 while announcing the annual supplement to the Foreign Trade Policy on April 11th 2008.

He said that "The government and the RBI are closely monitoring both the domestic and international economic developments. RBI has already taken a number of steps to reduce the cost of credit and improve liquidity for trade and industry.”

He added that the impact of the slowdown in exports has been more pronounced in sectors like gems and jewellery, textiles and garments, handicrafts, automobiles, leather and leather products, marine products and plastic and linoleum.

Mr Kumar further added that the economic downturn has affected employment in these sectors and the government is focusing on creation of new jobs to mitigate the problem.

(Sourced from Press Trust of India)

Go to News Title Go to Top

India shipping sector needs protection from multinationals

- 19 Feb 2009

BL reported that the domestic shipping industry needs to be protected from the growing threat of multinationals through a measure similar to that of anti dumping duty for products.

Mr S Hajara CMD of Shipping Corporation India said that “India has a vibrant local market and a number of multinational shipping companies are tapping the domestic market. Local companies need to be protected.”

Speaking at the inaugural session of India Maritime Summit 2009, Challenges and changing global economic landscape, organized by the Confederation of Indian Industry, Mr Hazara said while infrastructure status was given to ship building and ports, shipping was not covered.

The old theory is that anything movable cannot be given infrastructure status. On the shores, there are provisions such as duty exemptions and anti dumping duty to protect local industries. The argument is that anti dumping duty was not applicable for services sector and hence, shipping will not be covered under that.

Mr Hazara said that “But, we are now facing huge competition from multinationals, which are tapping the local market. Professionalism has been strongly practiced in other countries, and Indian shipping should also be protected.”

He added that the share of India’s shipping in the domestic trade has reduced to 12% from 40%. The share could further reduce if the sector was not protected.

He said that “It is unfortunate that support to the industry was not emanating from the Government. We have not managed to go beyond the Shipping Ministry to take up the industry’s problems and requirements.”

Mr R Gopalan additional secretary, Department of Commerce said that “We are prepared to look into the issue of protecting the local shipping industry. We need to closely look at all areas in which measures similar to anti dumping duty could be brought in for the shipping industry.”

(Sourced from Business Line)

Go to News Title Go to Top

Indian iron ore spot FOB prices dip starting down spiral

- 19 Feb 2009

It is reported that spot prices of iron ore fines FOB East Coat of India, have further weakened on February 18th 2009 and market indications are pointing to big correction in coming days

Grade	Change	%
Fe 63.5/63%	2	3%
Fe 63.5/62.5%	1	1%
Fe 61 / 60 %	0	0%
Fe 59 / 58 %	1	2%
Fe 58 / 57%	2	4%

Change is during February 18th and February 17th 2009
Change is in USD per tonne

Thus in last 8 days the total reduction has been as under

Grade	Change	%
Fe 63.5/63%	3	4%
Fe 63.5/62.5%	3	4%
Fe 61 / 60 %	1	2%
Fe 59 / 58 %	5	9%
Fe 58 / 57%	3	6%

Change is during February 18th and February 10th 2009
Change is in USD per tonne

Market sources however point to much lower numbers to float in the coming days as per following changes with respect to prices on February 18th 2009

Grade	Change	%
Fe 63.5/63%	5	7%
Fe 63.5/62.5%	4	6%
Fe 61 / 60 %	4	7%
Fe 59 / 58 %	5	10%
Fe 58 / 57%	6	13%

Change is in USD per tonne

Thus likely crash, total, in the spot prices of Indian iron ore since February 10th is to be as under

Grade	Change	%
Fe 63.5/63%	8	11%
Fe 63.5/62.5%	7	10%
Fe 61 / 60 %	5	8%
Fe 59 / 58 %	10	19%
Fe 58 / 57%	9	18%

Change is in USD 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)

Go to News Title Go to Top

Japanese January crude steel output fell by 37.8% YoY

- 19 Feb 2009

Reuters reported that Japan's crude steel production slid by a record 37.8% YoY in January 2009 from a year earlier as the deepening global economic slump sapped demand for cars and other products.

According to Japan Iron & Steel Federation, output came to a mere 6.37 million tonnes, the lowest since February 1969. It was the fourth straight month of falls.

A spokesman for JISF said that "Demand for cars and all other products fell sharply during the month. Exports also declined." He added that the group expects the dismal figures to continue for a while.

Nippon Steel Corporation plans to cut output in the January to March 2009 quarter by 40% to a record low 5 million tonnes as customers like Toyota Motor Corporation and Honda Motor Co suffer amid the spreading recession. JFE Holdings Inc has shuttered a blast furnace since January 14th 2009 to cut back on output.

However, Nippon Steel expects to restart the two blast furnaces later this year, as it thinks automakers will see inventories return to appropriate levels by June and start increasing output by around July at the latest.

(Sourced from www.reuters.com)

Go to News Title Go to Top

FMG may sell AUD 500 million stake to Hunan Valin

- 19 Feb 2009

The Australian Financial Review reported that Fortescue Metals Group Ltd. plans to sell AUD 500 million of new stock to Hunan Valin Iron & Steel Group to help fund expansion of its operations in Western Australia.

The newspaper, without identifying sources, said that Valin’s investment, which is backed by the China Investment Corp. sovereign wealth fund, might top AUD 3 billion.

The report added that the money from Valin will help build new port and rail facilities for Fortescue.

FMG produced 14.8 million metric tonnes of iron ore in 2008 from its AUD 2.8 billion project in Western Australia, which began output last May.

(Sourced from The Australian Financial Review)

Go to News Title Go to Top

MEPS sees further decrease in steel prices in EU

- 19 Feb 2009

UK based consulting major MEPS sees that market sentiment remains depressed as the slightly more positive attitude witnessed at the start of 2009 has evaporated a month later. It said that “Producers failed to achieve the first quarter price rises they had hoped for, due to continuing weak demand and a lack of any desire on the part of customers to order ahead.”

MEPS said that “In Germany, market players report that activity levels are diminishing virtually daily. It is difficult to obtain precise indications of prices because the mills tend to negotiate each new order on an individual customer basis. Overall, we have noted few further price reductions. This could change when deals are struck for period two if the steel makers secure considerable decreases in the upcoming raw material price settlements. Inventories are still high at mills and customers. This situation is expected to persist for another five/six months as demand is only around half of normal.”

MEPS also aid that “As sales have not been recovering in the French market, values continued to fall. Producers still have plenty of material available, despite output cuts, and they are fighting for the few available orders. The lowest offers are coming from suppliers in Southern Europe, whilst the high figures in our table represent those from French steelworks. We do not anticipate further reductions. Meanwhile, both consumers and distributors are prioritizing stock depletion and this is progressing relatively well.”

It added that “Italian customers have been badly hit by the dramatic collapse in activity. Business at steel processors and service centres is reportedly down by an average of 50%. This absence of orders over the last four months means many companies still have inventories in place that they bought last summer at very high prices. Some have enormous stocks, others less so, but all are losing money. They also have to contend with credit problems, delayed payments and expected bankruptcies, especially among auto related clients. However, the sharp cutbacks in steel production are now being felt and prices have stabilized. New transactions with Chinese mills are almost nonexistent.”

MEPs Said that “Real consumption has declined considerably in the UK. A lack of market confidence, linked to the general economic climate, and limitations on credit are exacerbating the situation. The manufacturing base is suffering badly, despite the weakness of sterling. However, the depreciation of the currency is at least reducing import competition from third country steel makers. There are no new overseas offers of relevance but traders still have stock to sell. High inventories and weak demand are playing havoc with distributor pricing but ex-mill values are stable.”

MEPS also said that “The Belgian market remains quiet. Consumers have plenty of material in their warehouses and the mills continue to carry stock, even though production cuts were implemented. Distributors are keeping inventories to the absolute minimum. We have noted a further decline in mill prices.”

It added that “The outlook in the Spanish market is bleak with a lack of credit availability and rapidly decreasing stock values. Service centres' resale figures are so close to purchase prices that there is no profit margin. The driving force is an overwhelming need to generate cash. Nevertheless, distributors still need to purchase some material to fill shortfalls of certain grades/sizes as their stocks reduce. Delivery lead times from domestic mills have lengthened because of recent capacity cuts and are now at seven to eight weeks, depending on product. Basis values are steady. Further discounting is unlikely to result in more sales because real consumption has not improved.”

(Sourced from MEPS)

Go to News Title Go to Top

Indian domestic iron ore prices crash by up to 6% in Bellary

- 19 Feb 2009

Indian domestic iron ore prices crashed by up to 6% on February 2009, on the backdrop of lack of its demand in China, which is having a cascading effect on the global price levels.

Bellary

Product	Grade	Size	Change	%
Iron Ore Calibrate	Fe 65%	10-40	-100	-4.2%
Iron Ore Calibrate	Fe 64%	10-40	-100	-4.5%
Iron Ore Calibrate	Fe 62%	10-40	-100	-5.9%
Iron Ore Calibrate	Fe 60%	5-20	-100	-5.9%
Iron Ore Calibrate	Fe 62%	5-20	-100	-5.9%
Iron ore - Fines	Fe 63%	Fines	0	0.0%

Change is on February 18th as compared to February 17th 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)

Go to News Title Go to Top

Production pruning - NLMK restarts BF No 2

- 19 Feb 2009

NLMK announces that it has restarted blast furnace #2 which has a total capacity of 700,000 tonnes per year.

The 1000 cubic meter furnace underwent a 100 day overhaul. Earlier in February NLMK re commissioned blast furnace #3 with total capacity of 1.3 million tonnes of pig iron per year.

After the re launch of BF#2, annual pig iron capacity at the Lipetsk production site will reach 7.9 million tonnes and steel making capacity utilization will reach 87%.

Go to News Title Go to Top

Details of CSC price cuts

- 19 Feb 2009

It is reported that China Steel Corp, the nation's largest steelmaker, lowered its domestic steel prices by an average of 14.03% or NTD 3,353 per tonne, moving closer to market pricing levels.

The Kaohsiung-based steelmaker said that the price cuts would only apply to April and May; prices for June would be determined separately. The cut will be retroactive to the first quarter.

The price cuts per tonne are as follows: electrical steel coil, NTD 4,500; steel plate, NTD 4,166; electro-galvanized coil, NTD 4,000; wire rod, NTD 3,500; hot-rolled steel, NTD 3,000; cold-rolled steel, NTD 2,961; and hot-dipped galvanized steel coil, NTD 2,869.

This was the first time for the firm, which usually announces prices on a quarterly basis, to adjust them on a bimonthly basis. The steelmaker attributed its decision to an expected rise in demand for steel products thanks to various economic stimulus packages worldwide, while major steel factories have been implementing large-scale output cuts in a bid to tighten supplies.

The combined effect of both factors could speed up the process of reaching a balance between supply and demand of steel products, it said.

China Steel also said it had advanced the date of maintenance for its No. 3 blast furnace to the middle of April. Production will not resume until early September at the earliest.

(Sourced from taipeitimes.com)

Go to News Title Go to Top

HR prices dip in Saudi Arabia pushes MEASPI down

- 19 Feb 2009

MEA Steel price index, after being stable for almost 2 weeks, exhibited downward movement, mainly driven by dip of almost SAR 500 per tonne in HR prices, which led to reduction in MEA Flat Product Price Index by 109 points

Class	16-Feb	17-Feb	Change	%
MLPPI	4074	4074	0	0.0%
MFPPI	5964	5855	-109	-1.8%
MEDSPI	4647	4614	-33	-0.7%

MLPPI - Middle East Long Product Price Index
MFPPI - Middle East Flat Product Price Index
MEASPI - Middle East Steel Price Index

Category	16-Feb	17-Feb	Change	%
PI - Narrow Plates	5773	5773	0	0.0%
PI - Wide Plates	7887	7887	0	0.0%
PI - Hot Rolled	4970	4470	-500	-10.1%
PI - Cold Rolled	5565	5565	0	0.0%
PI - Galvanized	5467	5467	0	0.0%

To know more about these indices please visit
http://steelprices-middleeast.com/spi_services/spi.html

Hot Rolled prices in Saudi Arab dipped by 10 % in the last week owing low import offers from Ukraine, which are reported to be at USD 400 per tonne on CFR terms, thus having a spiraling effect in domestic market wherein stockiest with old high priced inventory emerged to neutralize their losses.

To know exact prevailing steel prices in MEA on daily basis, subscribe to services of www.steelprices-middleeast.com by registering or sending a mail to admin@steelprices- middleeast.com. Please note that this is a paid service.

(Sourced from www.steelprices- middleeast.com)

Go to News Title Go to Top

Timken enhances hot rolled tube capabilities

- 19 Feb 2009

It is reported that Timken Company is helping customers deliver products to end users faster by now producing its hot rolled seamless mechanical steel tubing up to a maximum outside diameter of 13 inches.

Timken is the only North American manufacturer with the capability to produce hot rolled seamless mechanical tubing in this size range. Prior to Timken’s offering, companies had to source this size steel tubing overseas and hold inventory to ensure a ready supply. Now that Timken is offering the larger diameter steel tubes, customers can benefit from shorter delivery lead times, enabling them to supply end products to their customers faster.

It increased its hot rolled carbon and alloy steel tube manufacturing capabilities to meet demand for larger tubing from customers in the industrial, energy and bearing markets. The tubes are used to produce parts for applications such as pulleys, gears, bearings and cylinders.

The new OD sizes are 12.5 inches, 12.75 inches and 13 inches with walls from 1.5 inches to 3 inches in 1/4 inches increments. Commonly produced grades are 1018, 1026, 1030, 4130, 4140 and 8620. Many of these sizes will be stocked by Authorized Timken Steel distributors in North America. The addition of this size extends Timken’s complete range of hot rolled seamless mechanical steel tubing from 2 inches to 13 inches OD and from 0.25 inches to 3 inches wall.

Go to News Title Go to Top

Iron ore price negotiations - CISA to accompany Baosteel

- 19 Feb 2009

Mr Shan Shanghua secretary general of the association told China Business News China Iron & Steel Association would send delegates to accompany Baosteel in JFY 09 ore talks with world's top three ore miners thoroughly. However, Baosteel would remain the sole party representing Chinese mills in the negotiations, and the move is to help Chinese mills land bigger price cut.

Mr Shen Wenrong chairman of Shagang Group said some leading mills are not quite pleased with the result settled by Baosteel in previous years. The ore talks result might be acceptable for Baosteel, but other mills may not think so since they have much smaller size and therefore are less profitable.

According to Mr Luo Bingsheng, vice chairman of CISA the annual ore talks are extremely complicated since too many factors will affect the result.

Mr Shan said Chinese mills would push for significant change to the pricing system this year. We would stick to unified international price instead of contract price or spot price, and China would build up an agent system to give smaller mills access to overseas raw materials. That would benefit both ore miners and steel mills, and safeguard the cooperative relationship in the long term.

CISA members will sign an industrial concord pledging that they would not resell the imported iron ore to unqualified. However, market insiders are skeptical about the viability of the concord.

Go to News Title Go to Top

Severstal could limit CAPEX to USD 1.2 billion in 2009 - Analysts

- 19 Feb 2009

Interfax quoted analysts at UniCredit said in a note following a conference call with Dmitry Druzhinin, Severstal's investor relations manager that Severstal is not planning more than USD 1.2 billion in capex this year.

Severstal earlier planned to match last year's capex of USD 2.7 billion to USD 2.9 billion in 2009, but in November, it cut last year's investment 20% and decided to put the bulk of its 2009 to 2011 investment projects back until the economic situation clears up and the markets improve.

Severstal's Russia-based enterprises upped capacity utilization 20 percentage points to 65%-70% in February as demand in China picked up.

Capacity utilization at Severstal's enterprises in North America rose 15 to 25 pp over November to December levels, to 55% to 65% thanks to a contract signed in December. The company also agreed on a 15%-price increase. Severstal is hoping plans to bail the US. economy benefit its own business there, as most of the steel it produces is used in the construction industry.

Severstal is not currently planning any mergers and acquisitions.

Severstal had planned capex of USD 16.3 billion in 2008 to 2012, including USD 8.8 billion in its Russia-based plants.

(Sourced from Interfax)

Go to News Title Go to Top

Visa Steel restructures holding in BaoSteel chrome JV Visa Bao

- 19 Feb 2009

ET reported that Visa Steel has raised its stake to 65% in Visa Bao Ltd, the joint venture with Chinese steel major BaoSteel, by way of realigning its corporate structure.

Mr Vishambhar Saran chairman of Visa Steel on the sidelines of the ICC ‘Mining to Steel Making Summit’ in Delhi told that “Our board has approved the merger of 14% stake held by our Swiss firm Visa Comtrade in the JV with Visa Steel Ltd, which had 51% stake in Visa Bao.”

He added that “Now we will look to export ferro-chrome produced by the JV firm from India only. When shipping rates were at their peak, last year, we had planned something big for our Swiss firm in the JV.”

Visa Steel in 2007 had entered into a definitive agreement with BaoSteel to set up a 100,000 tonne ferrochrome plant at an investment of INR 260 crore in Orissa. The ferrochrome plant will be funded with 65% debt and 35% equity and is scheduled for completion by 2010. Currently, the Visa Group is working towards achieving the financial closure for the proposed project.

(Sourced from Economic Times)

Go to News Title Go to Top

Japanese ferrous scrap price in downward trend

- 19 Feb 2009

JMB reported that Japanese ferrous scrap market would turn into decrease for the first time in 2 months due to slower demand at home and abroad.

The price is likely to move downward to stay lower level when the domestic demand could keep very low under major production cut by integrated steel makers and electric furnace steel makers while the export demand keeps certain volume for China and other East Asian countries.

(Sourced from www.japanmetalbulletin.com)

Go to News Title Go to Top

Steel prices recovery may come at year end - Analysts

- 19 Feb 2009

It is reported that China's steel prices have reversed the nine straight months uptrend since last year end and stepped downward course since last week with prices falling CNY 200 per tonne the most. And yesterday, prices for flats and wire rod drop another CNY 50 and CNY 30 respectively from the week start.

Analysts told National Business Daily that the price decline reflects that it still takes time for steel industry to recover, and whole market rebound might come in the second half of by the end of the year.
Steel analysts noted that domestic steel prices average CNY 4,266 per tonne in January up by 3.4% from the month earlier according to latest data released by the Ministry of Commerce. But the price up has collapsed last week since current market condition is insufficient to prop up rises both in supplies and prices. They said inventory write-off remains the top issue for steel mills at present, while demand recovery is the basic fundamental for the market price to rebound.

Mr Sun Lin from Guohai Securities said though steel support plans have rolled out, it can hardly take immediate effect. And further, the devaluation of raw material stocks resulted from the tumbling prices since second half last year also casts a shadow on the market recovery.

Economic analyst Mr Cong Dahai from Xinhua News Agency said the deep correction in China's steel industry stems from the nearly half a decade of uninterrupted market boom. And the tentative signs of slight upturn in prices, production and profit in recent days only resulted from the panic falls in earlier period. Meanwhile, overseas materials might flush into domestic market in days to come, weighing on the latter prices. Mr Cong believes steel market would continue plaguing by oversupply and lingering at bottom line and the operating loss will drag on in the first trimester or even the first half.

An insider told the newspaper that on optimistic forecast, China's steel production would drop to 460 million tonnes in 2009 or down nearly 9% from a year ago, who declined to be identified. Demand both at home and abroad can hardly move up in near term, with major down-stream steel-using auto and shipbuilding sectors etc suffering from huge profit loss and orders slump. The Insider said though demand for construction steel rebounds slightly stimulated by the support plans, it still cannot bolster up whole sluggish steel market, and steel prices might wandering at low levels for a long time.

(Sourced from.Mysteel.net)
Visit www.Mysteel.net for real time access to China steel news!

Go to News Title Go to Top

Shenhua bids for Mongolian coal project

- 19 Feb 2009

China Knowledge reported that China Shenhua Energy Company Ltd which is engaged in the coal mining, power generation and transportation businesses has placed a bid for up to 49% stake of a coal project in Mongolia.

According to the report, the huge coal project is the world's largest undeveloped sintering coal mine, with estimated ore reserves of 6.5 billion tonnes worth USD 2 billion.

According to sources Companhia Vale do Rio Doce, BHP Billiton and Rio Tinto also entered the competitive bidding.

In January, China Shenhua's coal yield was 17.6 million tonnes up by 21.4%YoY and the firm's coal sales reached 19.30 million tonnes slightly surging 2.7% from the previous year.

(Sourced from China Knowledge)

Go to News Title Go to Top

Steel output set for first drop in over a decade - Reuters Poll

- 19 Feb 2009

A Reuters' survey showed that the world steel industry is this year braced for the first output fall in more than a decade as capacity usage remains in the doldrums and consumers stay away from the market.

The survey of 10 analysts and industry experts, carried out over the last week, showed that global crude steel production is expected to fall by 9% to 1.210 billion tonnes in 2009, which will be the first drop in output since 1998. Global steel demand is expected to fall to 1.171 billion tonnes in 2009 and recover slightly to 1.255 billion tonnes in 2010, with Asian demand dropping sharply for the first time since the 1997 Asian financial crisis.

Mr Jeff Largey analyst at JP Morgan said that "We believe global steel production will fall by 12% in 2009 as capacity utilization rates will remain at depressed levels due to weak end market demand."

As the global recession knocked demand in key steel consuming sectors last year, such as automotives and construction, producers across the globe have been forced to slash output sharply, cut jobs and shelve investment plans. A strong performance in the first half of the year limited the fall in the whole year output to only around 1%, bringing the total number to 1.33 billion tonnes, down from 1.35 billion tonnes in 2007, the highest output ever recorded.

Figures from the World Steel Association showed that but in December 2008, production slumped by some 24% as the output cuts began to kick in, signaling a tough year ahead.

Mr Michael Shillaker analyst at Credit Suisse said that "The industry will not see deeper cuts in the second quarter than the first quarter. But the output will be lower significantly on a year on year basis."

In the survey, the mean for the 6 estimates for Chinese 2009 consumption stood at 431 million tonnes while consumption was expected to recover to 469.2 million tonnes in 2010. But with exports from Asia tumbling sharply due to lack of demand from its major customers, recession hit United States and Europe analysts dare not talk about a recovery, just yet.

(Sourced from www.reuters.com)

Go to News Title Go to Top

Chinalco will need Australian approval on Rio assets

- 19 Feb 2009

Bloomberg reported that Aluminum Corp. of China will have to get Australia's agreement to transfer stakes in mines being acquired in its USD 19.5 billion investment in Rio Tinto Group to other Chinese state owned companies.

Mr Doug Ritchie MD of Rio Tinto's said "It will still require the approval of the Australian government because it is the transfer of an Australian asset. He's been speaking with investors in Australia this week. He said that not all of the rights that Chinalco has would go to a transferee. They would end up becoming a passive investor not an active participant in any joint ventures."

Mr Ritchie said "I wouldn't say I've heard too much of shareholders who don't agree with it. They like the value. The more they think about it, the more the more it addresses comprehensively the issue of debt and risk. He said that Rio and Chinalco will jointly explore for copper and coking coal in China under the proposed agreement, Ritchie said. Rio will be the first non Chinese company to undertake extensive exploration and will spend a significant amount of money in the nation. He added that we have always considered it under-explored and have been trying to explore there for in excess of 20 years."

Mr Ritchie said Chinalco's investment in Rio will bolster China's bargaining power to set iron ore prices, the China Iron and Steel Association said last week. Chinalco will take 15% of Rio's Hamersley iron ore unit and jointly sell 30% of output in China. This won't affect iron ore prices. He said that "It makes no difference. It would have no affect on customer allocations, volumes, sales or sales pricing or strategy."

(Sourced from Bloomberg)

Go to News Title Go to Top

Mincor posted USD 22.7 million loss in H1 on falling prices

- 19 Feb 2009

Mincor has reported a first half loss of USD 22.7 million on sharply lower prices for the steel making commodity. The loss compared with a USD 31.3 million profit for the previous corresponding period.

Mincor said that the loss came on a 39% YoY fall in gross revenues because of sharp falls in the nickel price, a provisional pricing charge of USD 9.3 million and a one off, non cash asset impairment charge of USD 17.3 million. In accordance with its standard accounting practice, it had also written off exploration costs of USD 6.7 million.

The loss came despite record production and the company’s best cost performance in 2 years. It reported operating earnings of USD 28.6 million and said that it had cash reserves of USD 72 million and no debt at the end of December 2008.

Despite the loss, Mincor declared an interim fully franked dividend of 2 cents a share, down from six cents a share on the previous corresponding period. Mincor said that its suspended operations, primarily the Miitel mine near Kambalda, were capable of a rapid return to production if commodity prices picked up.

(Sourced from www.mincor.com.au)

Go to News Title Go to Top

European rebar prices fall further on low demand

- 19 Feb 2009

It is reported that Europe’s steel rebar price fell further on weak demand due to the decreasing scrap and billet price this week. And the price differs a lot in Europe.

Both domestic and oversea steel rebar market in South Europe was weak. And in Italy and Spain, the export market was better than their domestic market.

The current export price of steel rebar in Spain was quoted at FOB EUR 340 per tonne. And the export price in Italy was at EUR 350 per tonne FOB. The price in Portugal was at EUR 365 to EUR 370 per tonne.

Further the latest price in Greece was at EUR 390 per tonne. Besides, the steel rebar market in Britain was depressing as well. And the price has been down to USD 460 per tonne.

(Sourced from YIEH.corp)

Go to News Title Go to Top

Steelmakers hike coke purchase prices on tight supply

- 19 Feb 2009

It is reported that Coking associations in Shanxi, Hebei and Shandong have raised guiding prices for Feb in succession by CNY 50 per tonne to CNY 100 per tonne as domestic coke market maintains modest uptrend.

Due to rising coking coal price, coke output cutbacks and plummeting coke stocks during Spring Festival, plus bloomy demand from medium and small steelmakers, coke market witnesses significant undersupply. Some medium and small steelmakers have pulled up purchase price on their own initiative to scramble for resources.

According to Mr Wang Shuai an analyst with Oriental Securities who has just come back after a survey in Shanxi, spurred by production restart of small steelmakers, coke capacity utilization rate stands high in Hebei yet that stays low in Shanxi.

Shanxi Coking Industry Association has urged to narrow output cutback to 40% to 50% from previous 60%-70% so as to meet increasing demand from steelmakers.

(Source: China Securities Journal)

Go to News Title Go to Top

Scrap procurement in Ukraine will decrease in 2009

- 19 Feb 2009

Minprom quoted Ukrainian Association of recyclable metals reports scrap procurement will decrease in 2009 by 6.3% to 14.1% to 5.5 million tonnes

Mr Valentin Kulichenko president of Association said “We can cover domestic demand drop with export increase. I hope that we will be able to provide 5.5 million tonnes to 6 million tonnes of scrap taking into account as domestic demand as export. At the same time he noticed that export share in 2009 can grow to 20. Such a volume was natural for the industry till 2008. In 2008 export share in total scrap procurement volume made 10 %.”

Mr. Kulichenko has also forested scrap procurement volumes increase in spring and noticed that monthly need for scrap can reach 450,000 tonnes.

In 2008 scrap procurement in Ukraine reduced by 16.9% to 6.4 million tonnes due to steel output decrease in Q4 2008.

(Source: Minprom)

Go to News Title Go to Top

Chinese shipbuilders in consolidation mode

- 19 Feb 2009

China Daily reported that China's shipbuilding industry, which last year suffered its steepest annual decline since 2003, is likely to be squeezed further this year by shrinking order books and order cancellations as the global economy remains in recession.

The industry, the world's second largest by capacity, will see more small shipyards swallowed by big players as mergers and acquisitions are expected to pick up pace this year.

According to market research company Clarkson Research Services, Chinese shipyards saw their orders plunge 40.9%YoY in 2008 to 58.18 DWT against an average global fall of 43.2%.

The China Association of the National Shipbuilding Industry said in its latest report shipyards worldwide will see orders further plunge to 40 to 60 million DWT in 2009, while the new orders Chinese shipyards receive is likely to drop to 20 million to 30 million DWT a 48.4% to 65.6% fall form a year earlier.

Mr Ye Zhigang analyst with Haitong Securities said in a report that 15% to 25% of Chinese yards' orders or 300 million DWT to 500 million DWT are likely to be canceled over the next three years, five percentage points higher than the global average. He said that the industry will remain in depression during the next three years and another period of growth will come after 2013.

The State Council, or the Cabinet, on February 11th approved a stimulus package for the country's shipbuilding industry, after similar plans for the auto, steel and textile industries. The stimulus package includes support in financial credit and technology upgrades, new capacity control as well as encouragement of mergers and acquisitions within the industry.

Mr Guo Yalin an analyst with CITIC Securities said "The package comes as a boost to a sector that has been struggling for new orders and in retaining old ones. Large shipyards are more likely to survive over the next three years but life for small ones will be hard.”

PingAn Securities analyst who declined to be named said "Large State-owned shipyards in China have better capacity to tackle the difficulties. Compared to small private shipyards, they have higher skills and their clients are of better quality. But "for small and medium-sized private shipbuilders in China, the situation is serious."

Mr Shi Weidong board secretary of CSSC said China State Shipbuilding Co Ltd, one of the country's largest shipbuilders, is now considering offering discounts to its clients to avoid order cancellation.

Mr Zhang Jincan, an analyst at Guotai Junan Securities said "The number of shipyards in China is sure to decrease over the next few years. Some small private yards will go bankrupt, while more mergers and acquisitions will take place, but is hard to predict the scale of this."

Analyst Zhang said "The traditional advantage of China's shipyards is building bulk freighters. However, I think they should aim to build more oil tankers, container vessels and ships with higher added value in the long term. He said that therefore, Chinese shipyards should try to invest more in research and development. At present, China still cannot build some type of ships or lags behind developed techniques such as those of South Korea and Japan."

(Source: China Daily)

Go to News Title Go to Top

Tenova inks slabs furnace contract with Cosipa

- 19 Feb 2009

Cosipa and Tenova LOI Italimpianti have signed a contract for a New Walking Beam Furnace for slabs to be installed in the new mill of the COSIPA Plant in Cubatão in December 2008. The walking beam furnace, having a production of 400 to 440 tonnes per hour, has been designed accordingly to the last innovation concepts of LOI Italimpianti in the field of high production reheating furnaces.

The innovative criterion consists in the optimization of the furnace profile to get the best application of the FlexyTech technology, this latter representing a new developed platform in terms of quality of the reheating and protection of the environment. Main features of this new technology are as follows:

1. The flameless burners assure a lesser flame temperature, by delaying the mixture fuel air combustion, giving a reheating process with a best transfer uniformity heating .in the slab. The special burners design ensures also a very low NOx emission

2. The installation of lateral frontals and roof burners permits the input of the heating where required and distributes it according to the position and dimension of the charge inside the furnace

3. The frontal burners by the overlapping of the on off sequential and the modulation controls allow the heat input in the soaking zones, in combination with the appropriate special design of the riders allow to minimize the cold spots created in the heating zones

4. Level 2 by FlexyTech mathematical model for off line simulation and on line control optimization of the furnace

Tenova LOI Italimpianti is a leading supplier of industrial furnaces and services for the metal industry. Tenova designs and supplies advanced technologies, products and services for the metal and mining industries. Tenova operates close to its customers through a network of 30 companies based on the 5 continents.

(Sourced from www.tenovagroup.com)

Go to News Title Go to Top

India iron ore exports rise on higher China demand

- 19 Feb 2009

Bloomberg reported that India’s iron ore exports in January 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, a group of iron ore miners in a statement said that shipments increased to 13.9 million metric tonne from 11.5 million tonne a year earlier. Shipments in the 10 months ended January fell 1.5%.

China’s plan to spend CNY 4 trillion on housing, railroads and other infrastructure projects is reviving demand for steel in the country. China purchases most of its iron ore for immediate delivery from India.

Mr PK Mukherjee MD of India’s biggest iron ore exporter Sesa Goa Ltd said that “The smaller units in China are buying iron ore on expectation of a rebound in steel demand. Also, companies are buying as stockpiles have fallen.”

Mr RK Sharma secretary general of the Federation of Indian Mineral Industries said that India’s iron ore exports in December surged 38%, the first gain in 8 months. Export prices are expected to double to USD 90 a tonne from last year’s low of USD 45, on February 10th 2009.

(Sourced from Bloomberg)

Go to News Title Go to Top

Turkish steel mills likely to drop rebar export prices for March

- 19 Feb 2009

Market source indicated that Turkey’s rebar offer to Middle East declined to the level of USD 460 per tonne to USD 470 per tonne for March production due to sluggish demand.

But Middle East buyers prefer to purchase from their local makers or its distributors.

At the same time and for the same reason, CIS steel makers lower down their billet price of March production to USD 380 to USD 390 per tonne from earlier USD 400 to USD 410 per tonne but still fail to attract more orders.

(Sourced from YIEH.com)

Go to News Title Go to Top

Sims Metal Management declares results

- 19 Feb 2009

Sims Metal Management has posted a net loss of $79.4 million in line with a recent profit warning and says it will emerge stronger from the unprecedented economic downturn.

Sims said the net loss of $79.39 million for the half year ended December 31 included a non-cash goodwill impairment charge of $173 million.

The company posted a net profit of $139.44 million in the prior first half.

Highlights
1. Sales revenue of $5.58 billion up 104 percent on HY08
2. EBITDA of $254.1 million up 3 percent on HY08
3. EBIT of $172.3 million before non-cash goodwill impairment charge down 17 percent on HY08
4. Net income of $93.6 million before non-cash goodwill impairment charge of $173.0 million (consistent with the Company's previous guidance)
5. Earnings per share of 51.8 cents before non-cash goodwill impairment charge
6. Non-cash goodwill impairment charge of $173.0 million
7. Net loss after non-cash goodwill impairment charge of $79.4 million (consistent with the Company's most recent guidance)
8. Loss per share of 43.9 cents, after taking into account non-cash goodwill impairment charge
9. Net debt of $54 million, less than 2 percent of total capital, attributable to strong cash flow from operations of $541 million
10. Interim dividend per share of 28 cents (100 percent franked) down from 55 cents per share (47 percent franked) for HY08; record date for payment of dividend set on 20 March 2009; payment date set on 9 April 2009

Mr Daniel W Dienst CEO of Sims said that"As our results reflect, we experienced an unprecedented deterioration in economic conditions in the first half of our 2009 fiscal year. The downturn spread with remarkable speed, ultimately affecting demand and metal prices in a way that could not have been foreseen. As a consequence of the global credit crisis and rapid deleveraging, and the related effects on commodity markets, we recorded a number of significant abnormal items."
Mr. Dienst continued, "Despite these factors, we are encouraged by the strong cash flow generated by the Company, which resulted in modest net debt at the end of our first half and a gearing ratio of less than two percent. We believe that with our dedicated employees, global reach, and leading position in markets around the world, Sims Metal Management will emerge from this downturn even stronger and will create meaningful long-term value for its shareholders."

North America
Sales revenue was up 208.8 percent on the prior corresponding period to $4.23 billion. On a US dollar equivalent basis, sales revenue was up 177.1 percent on the prior corresponding period to US$3.31 billion. EBIT (earnings before interest and tax) was down 88 percent to $13.5 million.

Half year results for North America were impacted by inventory adjustments and the impact from non-ferrous contract renegotiations of $69 million and $22 million, respectively, as well as a goodwill impairment charge of $173 million (pre-tax and after-tax).

Australasia
Sales revenue for the region was down 15.3 percent on the prior corresponding period to $683.7 million. EBIT was down 60.6 percent to $27.3 million.

Half year results in Australasia were impacted by $7 million of inventory adjustments and $10 million of non-ferrous contract renegotiations as well as a decline in joint venture income. EBIT, before inventory adjustments and non-ferrous contract renegotiations, was $44.3 million.

Europe

Sales revenue was up 20.4 percent on the prior corresponding period to $660.9 million. EBIT was a loss of $41.5 million.

Half year results in Europe were impacted significantly by $40 million of inventory adjustments and $10 million of non-ferrous contract renegotiations. EBIT before inventory adjustments and non-ferrous contract renegotiations was $8.5 million.

Sims Recycling Solutions

Sims Recycling Solutions (SRS) was not immune to the difficult market conditions around the world. The SRS business has evolved over time from a primarily fee-for-service platform to a merchant model increasingly reliant on commodity prices, similar to the scrap metal business. Consequently, as commodity prices declined, profitability in SRS was challenged and inventory adjustments were required. As a result of difficult markets and inventory adjustments, SRS businesses across all regions also experienced losses of $12.6 million as compared to EBIT of $43.1 million in the prior corresponding period.

Go to News Title Go to Top

Russian steelmakers may face low demand impact in spring

- 19 Feb 2009

RBC Daily reported that production rally in steel making industry in January-February can be very short and Russian metallurgy can face the absence of demand again as in domestic as in external market in spring.

Steel demand jump in the beginning of 2009 inspired the manufacturers. By the middle of February domestic metallurgists run the capacities which were stopped in October to December 2008.

Two of four blast furnaces stopped for repair in autumn 2008 were run at MMK. The plant planned to produce 700,000 tonnes of steel in February and the same quantity in March. It is approximately 75 % of the plant’s capacity.

NMLK brought the blast furnace N9 at full capacity. At that two of five blast furnaces still do not work. Seeing the demand growth majority of steel plants announced prices increase by 10% to 15% for some kinds of products in February.

But the experts doubt that metallurgists will be able to restore production in full this year. For instance, Standard & Poor’s rating agency decreased the forecasts for credit ratings of NLMK and MMK to negative. Revision of the forecast reflects the possibility of decreasing of companies’ financial factors due to the breakdown in Russia’s and World steel markets and economy growth slowing. This will affect the prices and steel production volumes a credit analyst form Standard & Poor’s says. He expects that steel output drop in 2009 will make 30% from the last year levels.

The experts’ expectations are confirmed by the traders who began to refill the stockpiles and felt demand absence in the middle of February. In the beginning of March they noticed demand in some segments of the market. Now they speak about the absence of demand. According to the words of the Marketing Director of “Brok-Invest-Service” company the demand for steel is seen from small traders only. At the same time construction and machine building companies have no funds. The demand drop is also forecasted by the metallurgist themselves. For example, the Director for strategic development of “SeverStal Invest” company says that in 2009 steel consumption volumes in Russia’s market will drop by 25% to 30 % to 27 million tonnes. Global crisis corrected the consumers’ plans for the nearest 3-5 years. The consumption volume of 2006 will likely to be reached in 2011.

(Source: RBC Daily)

Go to News Title Go to Top

Vale declines in Brazil as analysts see slow recovery

- 19 Feb 2009

Bloomberg reported that Cia Vale do Rio Doce, the world’s biggest iron ore producer, fell the most in five weeks on signs an economic recovery may take longer than expected in the company’s major markets, delaying a rebound in demand.

The company’s stock fell BRR 1.86 or 6% to BRR 29.06 in Sao Paulo trading, the biggest one-day decline since January 12th.

Vale customers including ArcelorMittal, the world’s biggest steelmaker, and Baosteel, China’s largest producer of the metal, reduced purchases of iron-ore in the final quarter of 2008 and cut output as steel orders slumped from the construction and automotive industries.

Mr Rodrigo Ferraz an analyst with Brascan Corretora in Rio de Janeiro, said “Vale’s responding to global concerns on economic indicators.”

(Sourced from Bloomberg)

Go to News Title Go to Top

Confirmation for Tenova strip processing from China Nanshan

- 19 Feb 2009

Tenova Strip Processing Business Unit has received the Acceptance Certificate for the second aluminum coil packaging line supplied to the Nanshan Aluminum Company of Longkou Donghai, in China’s Shandong province.

The order was for two complex systems to handle aluminum strip of thicknesses ranging from 0.10 to 2 millimeters. The operational challenge for this system, composed by 1 LCPL and 1 SCPL, is to package coils with very large range of dimensions without damaging the extremely thin material:

1. Internal diameter from 150 to 500 mm
2. External diameter from 600 to 2000 mm
3. Width from 10 to 2100 mm
4. Weight from 15 to 15000 kilogram

The system can package up to 60 small coils an hour. This type of particularly thin aluminum foil is used in production of food containers. The packaging operations performed by Tenova lines are of fundamental importance in maintaining the characteristics of a highly technological product and ensuring protection against damage during domestic and sea transportation.

Tenova designs and supplies advanced technologies, products and services for the metal and mining industries. Tenova operates close to its customers through a network of 30 companies based on the 5 continents. For more information visit our website at www.tenovagroup.com.

Go to News Title Go to Top

Steel inventories in American region may decline - Deutsche

- 19 Feb 2009

According to Deutsche Bank AG, steel inventories in the Americas region probably will decline and US prices of the metal remain under pressure.

Mr David S Martin and Mr Jorge Beristain analysts said that inventories are likely to fall by 7% to 10% from December levels as companies refrain from building up stocks. They added that "These findings and recent pricing developments keep us cautious on the steel sector."

(Sourced from www.bloomberg.net)

Go to News Title Go to Top

B - 704, Millennium Plaza,
Sushant Lok - I,
Gurgaon, 122002 India
Phone : +91 124 4048993
Fax: +91 124 4048994
Email: info@steelguru.com

More news on steelguru.com

Chinese News

1. Steel prices rebound does not...

2. Hubei mills tie up to reduce...

3. Chinese steel market boosted by...

4. Angang board approves CNY 5...

5. Shanghai Zhenhua Port Machinery...

6. Baosteel Meishan Steel exceeds...

7. China may impose 5% tax on...

8. China importers seeks...