Dalian coke up more than 5 pct on debut

Fri Apr 15, 2011 7:55am GMT

* September contract opened at day's high of 2,300 yuan/T
* Copper, silver, gold launched on SMX, volumes thin

By Nick Trevethan and Manolo Serapio Jr

SYDNEY/SINGAPORE, April 15 (Reuters) - Coke futures on China's Dalian Commodity Exchange rose more than 5 percent on their debut on Friday on brisk volumes, reflecting strong interest in the world's first futures market for the steelmaking ingredient.

The most-active September coke contract opened at the day's high of 2,300 yuan per tonne, up 5.5 percent from the base price set at 2,180 yuan.

Copper, silver and gold contracts launched on the Singapore Mercantile Exchange also traded on their first day, but volumes were thin.

Coke ended at 2,247 yuan, trading 57,134 lots, equivalent to around 2.86 million tonnes.

Other contracts <0#DCJ:> traded as high as 2,395 yuan.

"Chinese contracts invariably fly off the shelf when they launch. We saw the same in lead, there is huge pent up demand for investment products," said a trader in Hong Kong.

"Like lead, it looks like the authorities are trying to keep the widows and orphans (retail investors) out of the market with the larger lot size. That has proved pretty successful with lead volume around a quarter of aluminium's trade."

China is the world's biggest producer, consumer and exporter of coke, a key steelmaking material.

Analysts and traders say China's coke futures may be considered a global benchmark in the long run, although coke producers said they will wait and see how the contract develops.

"We would rather wait to know how it goes, especially how to account for the different qualities of coke for physical delivery," a coke trader in Beijing said ahead of the launch.

Crude steel output in China, the world's No. 1 steel producer and consumer, is likely to hit a record 700 million tonnes this year, supported by strong demand.

But in a sign Chinese steel mills may be taking it slow in building product inventories with demand just trickling in as construction activity picks up, the country's daily crude steel output dropped 1 percent in March after hitting a record high in February.

SMX copper for July SMCEc1 last traded at $9,486 a tonne, while its equivalent on the London Metal Exchange, the benchmark three month contract, which falls due in three months from the current day last traded at $9,404.

The five-tonne LME-SGX mini copper contract for July SDCUc4 which matches the SMX product in lot size and is also cash settled, traded at $9,445.

Two lots of SMX silver SMSRc1 traded, with the deal done at $42.345 an ounce and one lot of gold SMGOc1 traded at $1,475 and ounce.

"New contracts will take quite a while to get up and running. But people will certainly pay attention to it. If there is enough liquidity, people will certainly become involved," said a Sydney-based trader.

"It will primarily be for speculators. What you really want for a proper contract is to have producer and consumer play the curve. In general, when a new contract starts, producers and consumers tend to be pretty standoff-ish until they can ensure the liquidity is there and will be sustained." (Editing by Himani Sarkar, sourced Thomson Reuters)

Rio Tinto shrugs off weak Q1, iron ore guidance on

Wed Apr 13, 2011 9:36am GMT

* Floods, cyclones dent Rio Tinto Q1 production
* Rio Tinto sees recovery over rest of year
By James Regan

SYDNEY, April 13 (Reuters) - Global miner Rio Tinto (RIO.AX: Quote) (RIO.L: Quote) on Wednesday forecast iron ore production to roughly meet market expectations for the full year, despite rain and cyclones denting output of its most valuable commodity in the first quarter.

The world's second-largest producer of the steel-making raw material reported a 3 percent fall in production for the March quarter, after cyclones battered its Pilbara operations in northwest Australia early this year.

Rio, the first of the large miners operating in this area to report production, is widely seen as a barometer for a sector operating at full tilt, as miners try to satisfy insatiable demand for industrial metals from China and other emerging markets, and take advantage of record prices.

Rio's production of hard coking coal, also used in steel-making, tumbled 12 percent in the first quarter from a year earlier, though this had been expected after major flooding in the country's main coking-coal region of northeast Australia.

"Our Australian coal, iron ore, uranium and alumina operations were affected by the extreme weather in the first quarter, but most are recovering and are benefiting from continued strong prices," Chief Executive Tom Albanese said in the company's quarterly production report.

But the company is still not completely recovered, with the last of four of the hardest-hit coal operations, its Hail Creek mine, still under a declaration of force majeure.

Close rival BHP Billiton (BHP.AX: Quote) (BLT.L: Quote) flagged in January that the Queensland floods will hit sales and production of its coal mining operations through the first half. BHP reports quarterly production figures April 20.

WEATHER ISSUES

Analysts said Rio's numbers were disappointing, but broadly in line with expectations after weather-related disruption.

"We are all aware of the weather issues and no one was really expecting production to be in line with the fourth quarter," analyst Richard Knights at Liberum in London said.

"Iron ore was probably a mild disappointment, but there is certainly still scope for them to make that up through the rest of the year and beat their current guidance."

Rio Tinto forecast its iron ore production for 2011 to total 191 million tonnes, roughly in line with market expectations.

Taking into account shares of production from joint venture partners, the total for 2011 rises to 244 million tonnes.

"They're obviously going to be operating Q2, Q3 and Q4 at much higher levels than last year, and they need to given tight market conditions," said ANZ Bank analyst Mark Pervan. "Particularly with China again being the key story."

Albanese also said he expects commodities prices to continue to power higher this year, which would help soften the impact of lost first quarter production.

In iron ore, quarterly contract prices increased by 20 percent from the March to the June quarter of 2011, following an increase in spot market prices.

The Steel Index's 62 percent benchmark .IO62-CNI=SI fell $1.1 to $181.9 per tonne, $10 off the record high hit in February.

Prices of coking coal have risen sharply since the floods, while copper CMCU3 is just 5 percent off the record hit in February.

Mined copper was down 14 per cent on the first quarter of 2010, reflecting lower grades at Escondida and Grasberg that had been flagged previously

Rio Tinto holds minority stakes in Escondida and Grasberg, operated by BHP Billiton (BHP.AX: Quote) (BLT.L: Quote) and Freeport McMoran FCM.AX respectively.

Alumina production was down 4 percent in the first quarter primarily due to heavy rains in Queensland, while bauxite and aluminium production were broadly flat.

The aluminium supply and demand balance is increasingly swinging in favour of producers, which is being reflected in rising prices for metal -- up around 8 percent this year.

In coal, Rio forecast its Australian hard coking, semi-soft coking and thermal coal output for 2011 at 9.3 million tonnes, 3.2 million tonnes and 18.2 million tonnes, respectively.

The production report did not make a major impact on Rio Tinto's Australian shares, which were already underperforming the market before the release of the production data. Its stock closed down 1.3 percent at A$85.71.

London-listed stock was up 0.3 percent by 0934 GMT at 4,414 pence, underperforming marginally stronger rises at its rivals. (Additional reporting by Manolo Serapio Jr. in Sydney and Clara Ferreira-Marques in London; Editing by Michael Urquhart and Mike Nesbit,sourced:Reuters)

Int'l rating body upgrades Indonesia's rank

Friday, April08, 2011 15:21:59

JAKARTA, April 8 (Xinhua) - International rating agency Standard & Poor's Ratings (S&P) upgraded Indonesia's long term foreign debt and sovereign credit rank from BB to BB+ with positive outlook, detikcom online news reported on Friday.

S&P also maintained Indonesia's short term debt rank at "B".

The upgrade is based on improving the government's financial balance and external liquidity as well as strong economic performance and prudent fiscal management.

It said that the upgrade could sustain if inflation pressure could be curbed, debt position reduced and debt balance improved, or if fiscal and external vulnerability are reduced though reforms.

"Indonesia's positive outlook reflects some kind of upgrade if inflation could be tamed in line with further improved financial balance that are combined with successful implementation of the government's policy on fiscal, administration and structural reforms agenda," said S&P credit analyst Agost Bernard. By English.news.cn

Portugal asks for EU financial aid

Fri, April08, 2011
English.news.cn 2011-04-08 08:25:30

LISBON, April 7 (Xinhua) -- Portugal will ask Thursday for the EU financial aid, said the minister for the presidency of the council of ministers, Pedro Silva Pereira, at the end of the weekly government meeting.

However, Pereira did not specify the amount Portugal will ask for.

"This will depend on the negotiations the government will have with the European authorities. The request the Portuguese government will send to the European Commission and the dialogue we will have with them will establish the instrument and the amount that will be used," he said.

According to the minister, the European Union (EU) authorities and the European Central Bank already expressed their availability to send a joint team to Portugal to start the negotiations.

Due to the fact that Portugal will have general elections in June 5 and the government can not commit the country after that date, the solution should be a short term loan until the new government would be inaugurated. ByXinhua

Oil holds above $124 as Libya conflict hits fields

By Nia Williams | Reuters

LONDON (Reuters) - Oil hit a 32-month high above $124 on Friday after attacks on Libyan oil fields raised the prospect of long-term supply cuts, with commodities in general rising on optimism global economic recovery will fuel demand.

Ongoing unrest in the Middle East and concerns postponed elections in Nigeria could spark a new wave of militant violence and disrupt supply also contributed to the bullish mood in the market.

By 1023 GMT Brent was up $1.49 to $124.16, after earlier touching $124.45, a level last seen in August 2008. U.S. crude climbed $1.34 to $111.64, just below an intra-day peak of $111.68 last reached in September 2008.

"It looks like some of the fields in Libya are starting to be the target for military strikes which is worrisome because it means we have a risk of losing more crude for longer," said Christophe Barret, commodities analyst at Credit Agricole.

Rebels and forces loyal to embattled leader Muammar Gaddafi exchanged bitter accusations over who had attacked oilfields and infrastructure vital to both sides.

The seven-week old civil war has cut Libya's 1.6 million barrels per day output by 80 percent to between 250,000 and 300,000, a senior government official said.

It took Kuwait two years to restore oil production to pre-war levels of about 1.6 million bpd, similar to Libya's pre-conflict production, after the 1991 Gulf War, according to International Energy Agency data.

Fellow OPEC member and 1.9 million bpd producer Nigeria, whose light, sweet crude is highly prized as an alternative to lost Libyan output, postponed parliamentary elections again in some areas although polls will go ahead in most of the country on Saturday as planned.

"Besides the ongoing fighting in Libya, the elections in Nigeria this weekend are also adding to the nervousness," said Commerzbank analyst Carsten Fritsch in a note.

"Possible supply losses in Nigeria, Africa's largest oil producing country, could further tighten the supply situation for high-quality oil especially."

Futher supply worries came from Norway where a trade source said the North Sea Oseberg crude oil stream will load 118,000 barrels per day in May, significantly down from the provisional programme of 160,000 bpd in April.

COMMODITIES BOOMING

Crude prices rallied in step with gains across the commodities market where gold hit a record high, driven by a weaker dollar and positive global outlook despite Portugal's request for a bailout earlier this week.

But surging oil prices have stoked inflationary concerns for governments worldwide due to the potential adverse impact on economic growth of the rising cost of foodstuffs and raw materials, and the risk of demand destruction.

"Awash with still extremely cheap money - the leading policy approach to cope with the passed recession - the investment community is pouring record volumes into long commodity positions," said analysts at JBC Energy in a note.

"This drives not only fuel and food prices to record highs, but also raises the costs for other raw materials massively, clearly putting the economic outlook under threat."

(Additional reporting by Randy Fabi and Alejandro Barbajosa; editing by Keiron Henderson,Thomson Reuters)

U.S. general sees no military outcome in Libya

Fri, Apr 8, 2011 12:30 PM IST
By Michael Georgy

AJDABIYAH, Libya (Reuters) - Libyan rebels said five of their fighters were killed when NATO planes mistakenly bombed a rebel tank column and a top U.S. general said they were unlikely to be able to oust Muammar Gaddafi by force.

With daily skirmishes near the contested port of Brega in eastern Libya making little impact on the front line and rebels unable to end a brutal government assault on the western city of Misrata, NATO admits its mission to protect civilians is tough.

In rebel-held eastern Libya, wounded rebels being brought to a hospital Ajdabiyah said their trucks and tanks were hit on Thursday by a NATO air strike outside Brega, where fighting has dragged on for a week.

It was the second time in less than a week that rebels had blamed NATO for bombing their comrades by mistake after 13 were killed in an air strike not far from the same spot on Saturday.

At the same time, the rebels have accused NATO of being too slow to order air strikes they have come to depend on in their uprising to end more than four decades of Gaddafi rule.

NATO said it was investigating an attack by its aircraft on a tank column in the area along the Mediterranean coast on Thursday, saying the situation was "unclear and fluid".

Asked if a stalemate was emerging in the seven-week-old conflict, the head of U.S. Africa Command General Carter Ham said: "I would agree with that at present, on the ground."

He told a Senate hearing in Washington the United States should not arm the rebels without a better idea of who they were and when asked how the war would end, said: "I think it does not end militarily."

There was little likelihood that rebels would be able to fight their way to Tripoli and oust Gaddafi by force, Ham said.

Medical workers carried blood-soaked uniforms from hospital rooms in Ajdabiyah, gateway to the insurgent stronghold of Benghazi in the east, after wounded fighters were ferried back from Brega.

"It was a NATO air strike on us. We were near our vehicles near Brega," wounded fighter Younes Jumaa said from a stretcher at the hospital.

Nurse Mohamed Ali said at least five rebels were dead.

"NATO are liars. They are siding with Gaddafi," Salem Mislat, one of the rebels, said.

A rebel commander said it appeared to be a case of "friendly fire" and said it did not cause tension with NATO although the rebels wanted an explanation.

Rebels had brought about 20 tanks out of storage and were advancing with them along the coastal desert strip that divides Ajdabiyah and Brega when they were hit, he said.

"We would assume it was NATO by mistake, friendly fire," Abdel Fattah Younes told a news conference in Benghazi, speaking through an English translator.

AIR STRIKES CAUSE STALEMATE

Rebel spokesmen told Reuters Gaddafi forces killed five people and wounded 25 in an artillery bombardment of the isolated and besieged western city of Misrata on Wednesday.

The barrage forced the temporary closure of Misrata's port, a vital lifeline for supplies to besieged civilians, the spokesmen said, reporting fighting on a key road to the port as government forces tried to advance.

Libya's third city rose up with other towns against Gaddafi in mid-February and has been under siege for weeks after a violent crackdown put an end to most protests elsewhere in the west of the country.

A rebel spokesman told Reuters people in Misrata were crammed five families to a house in the few safe districts, to escape weeks of sniper and artillery fire.

U.N. Secretary-General Ban Ki-moon expressed concern about deteriorating conditions for civilians in Misrata and Zintan in the west, and Brega in the east.

He said the situation in Misrata was particularly grave with the city under heavy bombardment and shortages of food, water and medical supplies.

Turkish Prime Minister Tayyip Erdogan said Turkey was working on a "road map" to end the war in Libya which would include a ceasefire and the withdrawal of Gaddafi's forces from some cities. Turkey has held talks with envoys from Gaddafi's government and representatives of the opposition.

A rebel spokesman said later the rebels rejected talks with Gaddafi and demanded he leave power.
OIL PRODUCTION CUT

The civil war has cut Libyan oil output by 80 percent, a senior government official said on Thursday, as rebels and Gaddafi's forces traded exchanged accusations over who had attacked oil fields vital to both sides.

Supply worries stemming from the attacks helped drive U.S. and Brent crude futures to their highest in 2 1/2 years on Friday.

Rebels say government attacks on three different installations in the east have halted production of the oil they desperately need to finance the uprising against Gaddafi.

The government accused Britain of damaging an oil pipeline in a strike against the Sarir oilfield which killed three guards. NATO denied the alliance carried out any air strikes in the area and said forces loyal to Gaddafi were responsible.

Shokri Ghanem, chairman of the government National Oil Corporation, told Reuters Libya's production had fallen to 250,000 to 300,000 barrels per day compared with 1.6 million before the uprising.

Oil traders said a cargo of crude, worth around $112 million was headed for China after setting sail from the rebel-held port of Marsa el-Hariga near Tobruk on Wednesday.

The trial deal was likely to clear the way for Europe to resume badly-needed purchases of Libyan oil but traders said it could be a long time before exports reach substantial levels.

(Additional reporting by Alex Dziadosz in Benghazi, Mariam Karouny in Beirut, Hamid Ould Ahmed and Christian Lowe in Algiers and Marie-Louise Gumuchian in Tunis, Phil Stewart and David Lawder in Washington, Justina Pawlak in Brussels, Amena Bakr in Dubai and Jonathan Saul in London; Writing by Barry Moody; Editing by Jon Hemming)

Japan says economy in "severe" condition after disaster

Fri Apr 8, 2011 8:56am GMT

* Japan economy in severe condition, no quick recovery
* China says concerned over nuclear crisis
* Beijing to closely monitor Japan's actions
* No damage from aftershock reported at Fukushima plant
* Power cut in north Japan shuts factories, including at Sony

By Chizu Nomiyama and Yoko Nishikawa

TOKYO, April 8 (Reuters) - Japan's economy is in a "severe condition" with no quick recovery in sight following a triple disaster triggered by the March 11 earthquake that has sent service-sector sentiment plummeting the most on record, the government said on Friday.

While Japan confronts the economic impact of the disaster, it also faces increasing alarm from its neighbours with China expressing concern at the pumping of radioactive water into the sea from a crippled nuclear plant.

China's Foreign Ministry said it would "closely" monitor Japan's actions to end the crisis at the plant, where engineers are battling to contain radiation leaks. It demanded accurate information from Tokyo.

"As Japan's neighbour, we naturally express our concern about this," ministry spokesman Hong Lei said in a statement.

China is the first nation to publicly express its concern over a crisis that has lasted close to a month. Other countries have banned or restricted food imports from Japan over radiation fears.

"We ask that Japan reports the relevant information to the Chinese side in a swift, comprehensive and accurate way."

Power blackouts and restrictions, factory shutdowns, and a sharp drop in the number of tourists have left the world's third largest economy reeling. Many economists expect it to slip into recession this year as factory output and exports suffer.

The crippled Fukushima Daiicho nuclear power plant north of Tokyo means power shortages and supply disruptions that will leave the economy weak for some time, Japan's central bank said on Friday.

The Cabinet Office's assessment was equally bleak.

"Japan's economy is suddenly in a severe condition due to the effects of the earthquake," it said after releasing a monthly survey of hotel workers, restaurant staff and taxi drivers that showed a record fall in confidence to levels last seen during the depths of the global financial crisis.

In an obvious sign of the downturn; taxis park in long lines in central Tokyo each night, their drivers staying warm by idling the motor as they wait forlornly for a fare.

Japan is facing its worst crisis since World War Two after a 9.0 magnitude earthquake and a huge tsunami battered its northeast coast, leaving nearly 28,000 dead or missing and damaging six nuclear reactors north of Tokyo.

The Tokyo area and regions further north make up half of Japan's economy, Nomura research shows.

A strong 7.1 magnitude aftershock on Thursday night -- one of the biggest of more than 400 aftershocks above magnitude 5.0 -- shook the already ravaged northeast.

It forced two companies, including electronics giant Sony Corp , to stop production due to power cuts. At least two people were killed after the tremor.

There was a brief scare when water leaks were found on Friday at a second nuclear plant, Onagawa, in the northeast, but Japan's nuclear safety agency said it had not detected any change in radiation levels.

NO CHANGE IN RADIATION

A relieved Tokyo Electric Power Co (TEPCO) , which operates Fukushima, said Thursday's quake had not caused any more damage. It briefly evacuated workers because of a tsunami alert, although that was later withdrawn.

The U.N.'s nuclear watchdog sounded an encouraging note when one of its officials said there were signs of progress in stabilising the Fukushima plant, though the situation remained very serious.

The International Atomic Energy Agency (IAEA) said it had not detected any change in radiation levels following Thursday night's quake.

"The situation at the Fukushima Daiichi nuclear power plant remains very serious ... (but) there are early signs of recovery in some functions such as electrical power and instrumentation," the IAEA's head of nuclear safety, Denis Flory, said.

The agency said radiation in the region around the plant, as measured by gamma dose rates, had peaked in the early days of the crisis, and aside from a rise on March 22, had since fallen to "a level very close to background".

DISRUPTS BUSINESS

Japan's neighbours have grown increasingly anxious at the risk of contamination from radiation, with some schools in South Korea closing because of fears of toxic rain. Officials there said the radiation levels in the atmosphere were harmless.

China's health ministry said this week traces of radioactivity had been found in spinach in three provinces and the state news agency Xinhua reported trace levels of radioactivity detected in 22 provinces.

To cope with power shortages, Japan's government has asked major companies to cut electricity use in the peak summer months by up to a quarter and the Tokyo Stock Exchange said the power cuts meant it would have to delay plans to extend trading hours.

The impact of the quake meant both output and exports, major pillars of the economy, would remain weak, the central bank said.

"Output will hover at a low level for the time being but then start to increase as supply constraints are mitigated," the Bank of Japan said in its monthly report for April.

Companies and households will need to cut back significantly on power usage this summer when demand is at its peak, Trade Minister Banri Kaieda said after a cabinet meeting. He urged major companies to cut electricity consumption by 25 percent.

But some ministers at Friday's cabinet meeting called for an end to a campaign of "self restraint" by ordinary people that was adopted immediately after March 11 to cut fuel or electricity use and discourage stockpiling of necessities.

"Some cabinet ministers said excessive self-restraint could worsen the economy, weakening economic power for reconstruction," Chief Cabinet Secretary Yukio Edano told reporters.

PREVENTING MORE EXPLOSIONS

Utility TEPCO said it was continuing to inject nitrogen into one of its Fukushima reactors to prevent a repeat of last month's hydrogen explosions.

The plant is far from under control and engineers have been forced to pump in tonnes of water to cool down reactors, in the process making it radioactive. The water then has to be stored, though some has been released into the sea.

Officials say it could take months to bring the reactors under control and years to clear up the toxic mess left behind.

The government has set up a 20-km (12-mile) exclusion zone around the plant, banned fishing along much of the northeast coast and set up evacuation centres for the tens of thousands forced to leave their homes following the crisis. ($1=85.475 Japanese yen)

(Additional reporting by Mayumi Negishi, Chisa Fujioka, Yoko Nishikawa and Kiyoshi Takenaka in Tokyo, Ben Blanchard and Sui-lee Wee in Beijing, Jack Kim in Seoul; Writing by Jonathan Thatcher and Michael Perry; Editing by Neil Fullick, sourced Thomson Reuters)

HK, China shares hit fresh 2011 highs, more gains seen

Fri Apr 8, 2011 9:30am GMT

* Rotational buying in telecoms, China Unicom outperforms
* Hang Seng seen testing Nov '10 peaks by early May
* Shanghai hits second consecutive 2011 high
By Yixin Chen and Clement Tan

SHANGHAI/HONG KONG, April 8 (Reuters) - Hong Kong and mainland stocks rose again on Friday, reaching fresh 2011 highs, and institutional investors are expected to keep increasing their exposure next week based on attractive valuations and demand for materials.

The benchmark Hang Seng Index recorded a third weekly gain as institutional investors have turned bullish following a favorable earnings season and signs of China inflation easing.

The Shanghai Composite Index closed up 0.7 percent on the day and 2.1 percent on the week to 3,030.0, a fresh 2011 high, keeping the index above the key 3,000-point level and extending the gain on the year to 7.8 percent.

The benchmark Hang Seng Index closed up 0.5 percent on the day and 2.8 percent on the week. During Friday's trading, it reached a new high for the year of 24,468.6 before dipping to close at 24,396.1.

The next target for the Hang Seng is 25,000 -- which was tested in November 2010.

"The Hang Seng will probably top last November's peak sometime end April or early May," said Li Kwok-Suen, a fund manager with Phillip Securities Ltd in Hong Kong. "Institutional investors will mainly drive this rally, with hedge funds giving it a lift."

In Hong Kong, China Unicom (Hong Kong) Ltd led gains on the benchmark, closing up 6.5 percent on volumes that were five times its Thursday level and 2.3 times its 30-day average. The stock ended the day technically overbought, with a relative strength index (RSI) value of 77.5.

Analysts said there was some rotational buying within the telecommunications sector on Friday, with investors buying Unicom and selling its more established peer, China Mobile Ltd , down 0.3 percent on the day.

Still, several analysts expect China Mobile and HSBC Holdings , which have strong weight in the benchmark, to lead a broad rally on the Hang Seng next week, but suggest that other big banks and resource stocks might support.

HSBC, up 1.0 percent on the day, is trading in Hong Kong at a 12-month forward price-to-earnings ratio of 10.7 times, below the 10-year average valuation of 13.1 times, Thomson Reuters I/B/E/S data showed. China Mobile is trading at 10.1 times, lower than its average valuation over the past decade of 12.6 times.

A slew of IPOs in the next few weeks will likely support a rally, thanks to foreign inflows, which have increased in the last three weeks, analysts said.

SBI Holdings is expected to debut on April 14 with Hui Xian, Cheung Kong's yuan-denominated real estate investment trust, expected to debut April 15.[ID:nTOE72600K]

In its quarterly report released on Thursday, HSBC Global Research shifted to overweight on Chinese equity markets for the first time in a year, while remaining neutral on Hong Kong.

Analysts at the bank cited the effectiveness of Chinese monetary policy on keeping inflation contained. M2 growth slowed to 15.7 percent year-on-year in February, lower than the 16 percent target the Chinese central bank has set for this year. The base effect also suggests inflation will slow in the second half of 2011, HSBC said.

SHANGHAI INVESTORS BUY STEEL

China's main stock index ended up 0.7 percent on Friday as investors bought selected stocks, such as steel companies, keeping the index hovering above the key 3,000-point level.

"Generally, the index did not fall sharply after interest rate hike," said Ju Zihua, an chief analyst AVIC Securities in Jiangxi province. "But, a cautious mood is still hovering around the market, and we still need to focus on some previous hot shares and blue chips."

He said non-ferrous metal, coal, brokerage and other blue chips were in focus.

Turnover in Shanghai fell to 147 million yuan ($22.4 million) from 152 billion yuan on Thursday, reflecting investors' worries about inflation and further tightening of monetary policy.

Almost all steel makers listed on the Shanghai and Shenzhen market rose as investors were upbeat that steel demand would be large in April following the earthquake in Japan.

Inner Mongolia Baotou Steel Union , the most active share, jumped its 10 percent daily limit, while Xining Special Steel Co rose 6.1 percent.
(Editing by Kevin Plumberg and Richard Borsuk, sourced Thomson Reuters)

India's Tata Steel says no change in position on Riversdale

Fri Apr 8, 2011 9:26am GMT

NEW DELHI, April 8 (Reuters) - Tata Steel has not changed its position regarding its stake in Riversdale Mining , a senior official of the Indian steelmaker said on Friday, as global miner Rio Tinto won control over Riversdale with a $4 billion offer.

"No change," Tata Steel Vice-Chairman B. Muthuraman told reporters when asked if the company would change its stance after Rio Tinto gained control of Riversdale, in which Tata Steel is the biggest shareholder with a 27 percent stake.
(Reporting by Devidutta Tripathy; Editing by Aradhana Aravindan, sourced Thomson Reuters)

TNPL CALLS FOR 160KT OF NON-COKING COAL

Wed, April06, 2011

Tamil Nadu Newsprint and Papers Limited (TNPL), is seeking to procure another 160,000 MT +/- 5 percent of Non-Coking imported Coal with Gross Calorific Value (ADB) 6000 Kcal/Kg, on delivered at TNPL factory siding at Pugalur basis, according to the tender MM/SP/TENDER 201195059 released today.

Total tendered quantity to be delivered in four shipments starting from July 2011. The price should be quoted on C&F Tuticorin basis inclusive of all port charges.

Bidders are request to offer price based on C&F Tuticorin basis inclusive of all port charges and arrange delivery of such Coal to TNPL site by wagons (all activities of stevedoring, handling, arranging railway rakes, loading, transportation etc are in supplier’s scope), the tender terms said.

According to the tender issued on 2nd April 2011, the quality of coal should be Gross Calorific Value (adb) 6000 Kcal/Kg basis and will be rejected if GCV is below 5600 kcal/kg. The Inherent Moisture (adb) of around 10 pct, Total Moisture (arb) 15 pct basis and above 23 pct will be rejected. The Ash content (adb) 8 pct max , Sulphur (ADB) 0.8pct max and Volatile Matter (adb) 25 to 45 pct and above 45 pct will be rejected.

TNPL is a traditional consumer of Indonesian coal, for its paper factory in Karur district, India. TNPL has closed its latest tender at US$ 97.10 PMT.

Probably TNPL got their comfortable numbers in its latest tender and encouraged by the response they rushed back to procure one more batch.

The reference price (HPB) set by Indonesia for coal grade of 5,667 GAR kcal/kg heating value was at a US$ 103.50 a ton based on March 2011 HBA. However, TNPL's last coal purchased price was much lesser than Indonesian declared price for 5667 GAR coal.

Suppliers are requested to submit offers by April 16, 2011.(cs)

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Unemployment still top worry in Spain

Wed, April06, 2011 23:15:29 |English.news.cn

MADRID, April 6 (Xinhua) -- Unemployment remains the main worry in Spain, an official report published on Wednesday indicates.

A survey by the Center for Sociological Investigation (CIS) shows a total of 81.8 percent of respondents said unemployment was the country's main problem, a slight fall from the end of 2010 when 83.9 percent nominated it but still high.

Speaking on Punto Radio, Employment Minister Valariano Gomez said Wednesday he was confident that March would be the end of rises in unemployment and that things would begin to improve during April. However, the majority of his countrymen clearly do not share the optimism.

The CIS said more than 3.3 million Spaniards were out of work in March, following earlier government figures that said 34,406 people lost their jobs in the month. And more than 50 percent of the jobless believed it would be "difficult" or "impossible" to find a new job, the CIS study said.

Besides unemployment, the overall economic situation in Spain was also a public worry, with 79.5 percent of citizens responding that the current state of the economy was either "bad" or "very bad." Only 18.8 percent believed the economy would improve over the next 12 months.

Spaniards also showed a deep distrust in the country's political leaders, with 67.2 percent considering the political situation "bad" or "very bad;" and 74.1 percent fearing a poorer situation in 2012 when the country holds its general election.

Interestingly, only 5.7 percent of Spaniards were concerned about the threat of terrorism, thanks to the ceasefire called by Basque separatist group ETA and its current incapacity to carry out major attacks in the face of concerted police pressure. Terrorism used to be the principal worry of most Spaniards.

Meanwhile, the government's decision to raise the retirement age from 65 to 67 by 2027 is deeply unpopular, with 79.4 percent against the move, despite Prime Minister Jose Luis Zapatero's assurance that, economically, there was no other alternative. Editor: yan xinhua

Russia suspends seafood imports from Japan amid radiation fears

Wednesday, April06, 2011 22:42:53 |English.news.cn

MOSCOW, April 6 (Xinhua) -- Russia had suspended seafood imports from 242 Japanese companies due to fears of radiation contamination, Russia's food safety and sanitary watchdog, Rosselkhoznadzor, said in a Wednesday statement.

"The restrictions were introduced after an analysis of threats and risks which arose after the accident at the Fukushima-1 nuclear power plant," the statement said.

However, Rosselkhoznadzor didn't say how long the ban would last.

According to local reports, Russia imported 57,000 tons of seafood from Japan last year.

Earlier this month, Japan called for calm over radiation concerns, but is itself considering imposing radioactivity restrictions on seafood for the first time after contaminated fish were found.

Also on Wednesday, the Fukushima plant's operator, Tokyo Electric Power Co., said it had stopped highly radioactive water from flowing into the Pacific Ocean from the crippled plant by injecting a chemical compound. Editor: yan sourced: xinhua

Libya says ready for reforms, Gaddafi won't step down

Wednesday, April06, 2011 22:55:24 |English.news.cn

TRIPOLI, April 5 (Xinhua) -- The Libyan government said Tuesday it was ready to negotiate reforms, but refused any talk of Muammar Gaddafi stepping down, according to Al-Arabiya TV.

"What kind of political system is implemented in the country? This is negotiable, we can talk about it," said Information Minister Moussa Ibrahim.

"We can have anything, elections, referendums," he said, adding that "Gaddafi's future was non-negotiable," he stressed.

"We think he (Gaddafi) is very important to lead any transition to a democratic and transparent model," Ibrahim said.

Ibrahim also brushed aside allegations that Gaddafi's forces were committing atrocities on civilians.

"We are fighting armed militia and you are not civilian if you take up arms against the state," he said.

Fierce fighting continued in Libya and opposition fighters launched a new attempt to recapture the oil refinery town of Brega.

A coalition strike destroyed at least two military vehicles of Gaddafi in Brega, helping rebels surge toward the town.

The town has a great significant as it along with the eastern town of Ras Lanuf make up the lion's share of Libya's 1.5 million barrels of daily exports, which have been radically affected by the uprising that began on Feb. 15.

Cargill trades first steel scrap swap

Wed Apr 6, 2011 4:24pm GMT

* Interest in steel swaps increases - FIS
* CME launches new steel swaps
* LME also considers new steel contract
By Silvia Antonioli

LONDON, April 6 (Reuters) - Cargill traded the first over-the-counter steel scrap swap on Wednesday, as interest in steel derivatives soars, said Freight Investor Services (FIS), which brokered the deal.

Privately held food producer Cargill CARGIL.UL CARG.UL traded a steel scrap swap tied to May delivery of 1,000 tonnes of material to Turkish ports at $422 a tonne.

Its counterparty was a European metals trading company which refused to be named.

"We are starting to see a lot of people getting involved," said Sam Mehew, steel derivatives broker at FIS.

To cash in on increasing interest from industry participants and financial investors in steel derivatives, the Chicago Mercantile Exchange Group launched three steel swap contracts on Tuesday.

The London Metals Exchange said it was also considering launching some new steel contracts.
(sourced:Thomson Reuters)

Outflow of highly radioactive water into Pacific stopped: nuke operator

Wednesday, April06, 2011 09:03:51 |English.news.cn

The combo photo from Tokyo Electric Powershows adioactive contaminated water from the crippled Fukushima Daiichi Nuclear Power Plant No. 2 reactor leaks through a crack in a concrete pit and drains into the ocean in Fukushima prefecture, northern Japan April 2, 2011 (Top) and the water leak halts on April 6, 2011 (Bottom). Operator of Japan's crippled Fukushima Daiichi nuclear complex said on Wednesday it had stopped leaks of contaminated water with high levels of radiation into the ocean. (Xinhua/AFP Photo)

TOKYO, April 6 (Xinhua) -- The outflow of highly radioactive water into the Pacific Ocean from the crippled Fukushima Daiichi nuclear power plant has stopped after the injection of a chemical agent, Tokyo Electric Power Co. (TEPCO) said Wednesday.

TEPCO, the nuclear plant operator, injected sodium silicate, also known as "water glass," and another agent near a seaside pit where the highly radioactive water had been seeping through to stem the leakage.

The nuclear plant has been severely damaged by the March 11 mega earthquake and ensuing tsunami.

China's Wuhan to explore for iron in Madagascar

Wed Apr 6, 2011 9:13am GMT

* Exploration to take 6-8 months
* WISCO paid $100 million for exploration permit

ANTANANARIVO, April 6 (Reuters) - Wuhan Iron & Steel Co (WISCO), China's third-largest steelmaker, plans to start exploratory drilling for iron ore in Madagascar's Soalala region at the end of May, officials said.

WISCO Madagascar -- one of many foreign firms keen to develop the Indian Ocean island's mineral resources -- paid $100 million for exploration permits in 2010.

"Our investments are made in stages, depending on the results of the survey. The investment decision is expected in six to eight months, then will come the construction phase, which will last four years," said WISCO Madagascar's chief executive, Jun Yuan Lou.

"The actual operation should start in five years," he told a news conference late on Tuesday, when signing an environmental impact study and exploratory drilling agreement with the National Environment Office (ONE).

Exploration in Madagascar, which has oil, cobalt, nickel, gold and uranium deposits, has been hampered by a political crisis since incumbent President Andry Rajoelina seized power in March 2009.

As this project proceeds, "Environmental assessment studies, including the various public consultations will begin this week," said ONE's chief executive, Jean Chrysostome Rakotoary.

An environmental permit will be issued at the conclusion of the studies, which will take at least 45 days, and after the company pays ONE $350,000, he said.

The island's political crisis forced Madagascar Oil last month to declare force majeure on four of its oil blocks to safeguard its exploration rights after failing to reverse a state directive to acquire them. (Reporting by Alain Iloniaina; Editing by Helen Nyambura and Jane Baird)

Rio Tinto secures 49.49 pct stake in $4 bln bid for Riversdale

Wed Apr 6, 2011 8:54am GMT

MELBOURNE, April 7 (Reuters) - Global miner Rio Tinto beat its target to secure a 47 percent stake in Riversdale Mining with its A$3.9 billion ($4 billion) takeover offer, and will pay its sweetened offer.

The offer of A$16.50 a share depended on it getting to at least a 47 percent holding in Riversdale by late on April 6. Otherwise it was set to pay A$16 a share.

Riversdale's two other key shareholders, India's Tata Steel and Brazil's CSN , have held on to their combined 47 percent stake. ($1 = 0.965 Australian Dollars) (Reporting by Sonali Paul and Ed Davies, sourced Thomson Reuters)

Rio Tinto holds over 49 percent of Riversdale

Wed Apr 6, 2011 9:14am GMT

LONDON, April 6 (Reuters) - Global miner Rio Tinto (RIO.AX: Quote) (RIO.L: Quote) holds over 49 percent of Riversdale Mining (RIV.AX: Quote), beating its target 47 percent holding ahead of a deadline on its A$3.9 billion ($4 billion) takeover offer.

The offer of A$16.50 a share depended on Rio getting to at least a 47 percent stake in Riversdale by late on April 6, otherwise it would have paid A$16 a share.

Rio said in a statement on Wednesday that it now holds 49.49 percent of Riversdale. Earlier in the day, it announced a 46.78 percent holding.

The offer price increase has also triggered an extension of the offer period until April 20. Rio Tinto said last week it would go ahead with its takeover offer for Riversdale even if it ended up with a minority stake in the Mozambique-focused coal miner.

The offer, announced in December, was originally conditional on at least 50 percent acceptances.

(Reporting by Clara Ferreira-Marques; Editing by Julie Crust, reuters)

Fukushima situation remains very serious: IAEA chief

Tue April05, 2011 14:16:52 |English.news.cn

BEIJING, April 5 (Xinhuanet) -- The UN's nuclear watchdog says the situation at Japan's stricken nuclear plant remains serious. The IAEA says it's issued invitations to government ministers from 151 member nations, to attend a conference in June on nuclear safety procedures.

Yukiya Amano, IAEA Chief, said, "The situation at Fukushima Daiichi remains very serious, the crisis at Fukushima Daiichi nuclear plant has enormous implications for nuclear power, millions of people are worried whether nuclear energy is safe or not and I said these worries must be taken seriously. We cannot take a "business as usual" approach." (source CNTV.cn)

Japan's radioactive water worries S Korea

Tue, April05, 2011

By North Asia correspondent Mark Willacy, wires

South Korea has expressed concern to Japan about the pumping of radioactive water into the Pacific Ocean.

Japan says it is dumping more than 11,000 tonnes of low-level radioactive water into the ocean to make space for even more contaminated run-off from water used to douse overheating fuel rods.

The government says the release is needed to stabilise the crippled Fukushima nuclear plant.

South Korea's embassy in Tokyo has expressed concern that the release may be in breach of international laws.

"It's the proximity between the two countries that makes Japan's release of radioactive water a pressing issue for us," an unnamed official told South Korea's Yonhap news agency.

Tokyo Electric Power Co, the operator of the stricken plant, said the release of the water - the equivalent of more than four Olympic-sized swimming pools - would not harm marine life or seafood safety.

Traces of airborne radioactive material had already been detected in South Korea, but were said to be too minuscule to pose health risks.

Meanwhile, Singapore has suspended fruit and vegetable imports from another Japanese prefecture after raised radiation levels were detected in cabbages from the region.

The sample was from Hyogo, based around Kobe, 1,000 kilometres west of the Fukushima nuclear plant.

Elevated levels of radioactive iodine have also been found in young lance fish found off Ibaraki, about 140 kilometres south of the Fukushima plant.

Responding to public concern, the Japanese government says it will increase inspections of marine products.

Authorities have advised the public not to eat the species.

Singapore had earlier banned imports from 10 Japanese prefectures including Fukushima and Tokyo. sourced: ABC/AFP