Mon Jan 23, 2012
TOKYO Jan 23 (Reuters) - Tokyo Steel Manufacturing Co , Japan's biggest construction steelmaker, said on Monday it would keep prices unchanged in February, seeking to stem an inflow of cheaper imports, but added that the market shows signs of improvement on growing reconstruction demand.
Its pricing strategy is closely watched by Asian rivals like Hyundai Steel, POSCO and Baosteel, which have ramped up capacity, aiming to take advantage of their weaker currencies to boost exports to Japan.
"We hope to raise prices but the current yen rate and a potential rise in imports make it difficult to do so," Kiyoshi Imamura, marketing director at Tokyo Steel, told a news conference.
The company is hoping that China will ease its lending policy after the Lunar New Year break, stimulating steel demand.
In Japan, demand for construction steel has picked up since late last month on rebuilding of Japan's northeast that was devastated by massive earthquake and tsunami last March, Imamura said.
Showing posts with label Baosteel. Show all posts
Showing posts with label Baosteel. Show all posts
Monday, January 23, 2012
Thursday, January 19, 2012
FMG considers magnetite joint venture
Thu, 19 Jan 2012
It is reported that Fortescue Metals Group is considering developing its North Star magnetite iron ore project in Western Australia as a joint venture.
Fortescue last year indicated that it may spin off its magnetite iron ore assets because it was focused on easier-to-produce hematite iron ore.
However, on Monday the company said it saw potential value in developing its magnetite interests as joint ventures.
The miner said it was evaluating options to partner with third parties at its North Star magnetite project, which was adjacent to the company's Glacier Valley magnetite iron ore joint venture with Chinese steel maker Baosteel.
Fortescue said in a statement that any development of North Star would be on a non-recourse basis to Fortescue balance sheet
The company also announced a 72% increase in the resource estimate for its North Star magnetite project, 100 kilometres south of its Port Hedland operation to 2.12 billion tonnes.
Of that total, 1.3 billion tonnes is in the inferred category of Australia mineral reporting code which is the least proved up category.
Just over 100 million tonnes is in the top category and measured.
(Sourced from news.ninemsn.com.au)
It is reported that Fortescue Metals Group is considering developing its North Star magnetite iron ore project in Western Australia as a joint venture.
Fortescue last year indicated that it may spin off its magnetite iron ore assets because it was focused on easier-to-produce hematite iron ore.
However, on Monday the company said it saw potential value in developing its magnetite interests as joint ventures.
The miner said it was evaluating options to partner with third parties at its North Star magnetite project, which was adjacent to the company's Glacier Valley magnetite iron ore joint venture with Chinese steel maker Baosteel.
Fortescue said in a statement that any development of North Star would be on a non-recourse basis to Fortescue balance sheet
The company also announced a 72% increase in the resource estimate for its North Star magnetite project, 100 kilometres south of its Port Hedland operation to 2.12 billion tonnes.
Of that total, 1.3 billion tonnes is in the inferred category of Australia mineral reporting code which is the least proved up category.
Just over 100 million tonnes is in the top category and measured.
(Sourced from news.ninemsn.com.au)
Sunday, January 15, 2012
China's Baosteel FY11 net profit slumps 43.4 pct
Sat Jan 14, 2012
SHANGHAI Jan 14 (Reuters) - Baoshan Iron & Steel Co Ltd, China's biggest listed steelmaker, said on Saturday its 2011 net profit fell 43.4 percent to 7.3 billion yuan ($1.2 billion).
The firm said in a filing to the Shanghai stock exchange it achieved total revenue of 223.1 billion yuan, up 10.2 percent from the previous year. Its basic earnings per share for the year was 0.42 yuan.
Baoshan Iron & Steel said earlier in the month it will keep its main steel product prices steady in February from January but was guarded about the market's outlook.
With no signs that steel demand in the world's top steel producer will improve in the near term, the Shanghai-based steel company remained cautious over the market's prospects in early 2012 after raising prices slightly for January. ($1 = 6.3066 Chinese yuan)
(sourced Reuters)
SHANGHAI Jan 14 (Reuters) - Baoshan Iron & Steel Co Ltd, China's biggest listed steelmaker, said on Saturday its 2011 net profit fell 43.4 percent to 7.3 billion yuan ($1.2 billion).
The firm said in a filing to the Shanghai stock exchange it achieved total revenue of 223.1 billion yuan, up 10.2 percent from the previous year. Its basic earnings per share for the year was 0.42 yuan.
Baoshan Iron & Steel said earlier in the month it will keep its main steel product prices steady in February from January but was guarded about the market's outlook.
With no signs that steel demand in the world's top steel producer will improve in the near term, the Shanghai-based steel company remained cautious over the market's prospects in early 2012 after raising prices slightly for January. ($1 = 6.3066 Chinese yuan)
(sourced Reuters)
Thursday, January 5, 2012
Essar Steel ramps up Hazira steel unit capacity to 10 mtpa
Thu, Jan05, 2012
HAZIRA (GUJARAT): In an era where low-cost is the buzzword, Essar Steel has more than doubled the capacity of its Hazira steel plant from 4.6 million tonnes per annum to 10 mtpa at an investment of USD 7.5 billion, less than half the industry standard for setting up a facility of this size.
"It took USD 7.5 billion to create a 10-mtpa fully-integrated steel-making facility at Hazira. The investment includes raw material beneficiation, steel-making and distribution. The industry standard is more than twice for putting up a 10-mtpa capacity alone," Essar Group Chief Executive Prashant Ruia told reporters here today.
The plant will have the capability to manufacture steel at a low cost through a series of cost-cutting measures.
Essar Steel began its journey at Hazira in 1989 with a 0.9-mtpa sponge iron-making plant and in the passage of 22 years, gradual expansion of capacity has made the facility one of the top four flat steel producers in the world at a single location.
"We would like to dedicate this plant to the nation. When I first ventured into Hazira, it was my desire to put India on the global steel map and today that dream has come true. Our world-class steel complex is a testament to the hard work put in by the Essar family and our small contribution to the steel industry and India's growth story," Essar Group Chairman Shashi Ruia said in a statement.
The company is already among the lowest cost steel producers in the world through raw material and energy securitisation, Prashant Ruia said, adding that operational efficiencies, throughput enhancement and asset optimisation would move it further down the cost curve.
The Hazira facility combines a DRI, blast furnace and corex technology for making iron, which is later used in the steel-making process through electric arc furnaces. The advantage of having such a combination is that there is no wastage of gas generated through the corex iron-making technology.
As a result, the company generates almost 45 per cent of its captive requirement in the gas-based DRI. Essar Steel has a long-term contract with ONGC for the rest of the gas requirement.
"The cost of labour for per tonne steel-making is just USD 8.2 per tonne. This is only second to USD 5.71 for Baosteel. Even Posco's labour cost for per tonne steel production is higher than us at USD 9.22," Ruia said.
Ruia said the plant is expected to run at 80-85 per cent capacity in the next fiscal and 70-75 per cent of the output would be value-added products, the demand for which is on the rise on account of the fast-growing automobile and FMCG sectors.
(sourced ET)
HAZIRA (GUJARAT): In an era where low-cost is the buzzword, Essar Steel has more than doubled the capacity of its Hazira steel plant from 4.6 million tonnes per annum to 10 mtpa at an investment of USD 7.5 billion, less than half the industry standard for setting up a facility of this size.
"It took USD 7.5 billion to create a 10-mtpa fully-integrated steel-making facility at Hazira. The investment includes raw material beneficiation, steel-making and distribution. The industry standard is more than twice for putting up a 10-mtpa capacity alone," Essar Group Chief Executive Prashant Ruia told reporters here today.
The plant will have the capability to manufacture steel at a low cost through a series of cost-cutting measures.
Essar Steel began its journey at Hazira in 1989 with a 0.9-mtpa sponge iron-making plant and in the passage of 22 years, gradual expansion of capacity has made the facility one of the top four flat steel producers in the world at a single location.
"We would like to dedicate this plant to the nation. When I first ventured into Hazira, it was my desire to put India on the global steel map and today that dream has come true. Our world-class steel complex is a testament to the hard work put in by the Essar family and our small contribution to the steel industry and India's growth story," Essar Group Chairman Shashi Ruia said in a statement.
The company is already among the lowest cost steel producers in the world through raw material and energy securitisation, Prashant Ruia said, adding that operational efficiencies, throughput enhancement and asset optimisation would move it further down the cost curve.
The Hazira facility combines a DRI, blast furnace and corex technology for making iron, which is later used in the steel-making process through electric arc furnaces. The advantage of having such a combination is that there is no wastage of gas generated through the corex iron-making technology.
As a result, the company generates almost 45 per cent of its captive requirement in the gas-based DRI. Essar Steel has a long-term contract with ONGC for the rest of the gas requirement.
"The cost of labour for per tonne steel-making is just USD 8.2 per tonne. This is only second to USD 5.71 for Baosteel. Even Posco's labour cost for per tonne steel production is higher than us at USD 9.22," Ruia said.
Ruia said the plant is expected to run at 80-85 per cent capacity in the next fiscal and 70-75 per cent of the output would be value-added products, the demand for which is on the rise on account of the fast-growing automobile and FMCG sectors.
(sourced ET)
Monday, December 5, 2011
Rio Tinto ships 100 millionth tonne of iron ore to BaoSteel
Monday, 05 Dec 2011
miningaustralia.com.au reported that Rio Tinto has shipped its 100 millionth tonne of iron ore from the Pilbara to Baosteel under its Bao HI joint venture.
The 100 millionth tonne left Dampier on Friday, bound for Shanghai.
Under this milestone, the joint venture has reached the half way mark of the agreement for 200 million tonnes to be mined and sold to Chinese company Baosteel.
Mr Sam Walsh Rio Tinto's head of iron ore and Australia said that this is a great day for Rio Tinto, for Baosteel and for the relationship between our two nations.
He said “The Bao-HI joint venture is one of two such partnerships we have forged since [Rio Tinto first shipped iron ore to China in 1973], delivering hundreds of millions of tonnes into the world’s fastest growing and largest steel industry.”
The joint venture was first formed in 2002 between Rio's subsidiary Ranges Mining, which owns 54%, and Baosteel Australia Mining which owns 46%. The majority of the iron ore shipped under the joint venture was produced at the Eastern Ranges mines, near Paraburdoo, which was established specifically for the joint venture.
(Sourced from miningaustralia.com.au)
miningaustralia.com.au reported that Rio Tinto has shipped its 100 millionth tonne of iron ore from the Pilbara to Baosteel under its Bao HI joint venture.
The 100 millionth tonne left Dampier on Friday, bound for Shanghai.
Under this milestone, the joint venture has reached the half way mark of the agreement for 200 million tonnes to be mined and sold to Chinese company Baosteel.
Mr Sam Walsh Rio Tinto's head of iron ore and Australia said that this is a great day for Rio Tinto, for Baosteel and for the relationship between our two nations.
He said “The Bao-HI joint venture is one of two such partnerships we have forged since [Rio Tinto first shipped iron ore to China in 1973], delivering hundreds of millions of tonnes into the world’s fastest growing and largest steel industry.”
The joint venture was first formed in 2002 between Rio's subsidiary Ranges Mining, which owns 54%, and Baosteel Australia Mining which owns 46%. The majority of the iron ore shipped under the joint venture was produced at the Eastern Ranges mines, near Paraburdoo, which was established specifically for the joint venture.
(Sourced from miningaustralia.com.au)
Monday, August 15, 2011
Iron Ore-Shanghai rebar extends gains to 4th day, to buoy ore
Mon Aug 15, 2011
* Shanghai rebar at 1-week top, mills may restock iron ore
* Baosteel price hike boosting steel demand outlook
By Manolo Serapio Jr
SINGAPORE, Aug 15 (Reuters) - Shanghai rebar futures rose for a fourth straight day on Monday to their highest in more than a week, spurred by expectations of firm demand in top consumer China.
Hopes that Chinese steel demand will stay strong ahead of the peak consumption season from mid-September should renew interest among mills to restock iron ore, the key steelmaking material, this week and boost prices that had dropped for most of last week.
The most-traded January rebar contract on the Shanghai Futures Exchange SRBc6 rose 0.9 percent to close at 4,854 yuan per tonne, just off its session-peak of 4,855 yuan, its highest since Aug. 5.
"Baosteel's move to increase prices was a good sign that steel demand will remain strong in September," said a trader in China's eastern Shandong province.
Baoshan Iron & Steel Co Ltd , China's biggest listed steelmaker, said on Friday it would raise prices of its main products for September, in anticipation that demand for flat steel products will pick up.
Unlike long steel products which had benefited from increased construction activity in China this year, makers of flat steel meant for automakers and producers of home appliances have seen margins squeezed by poor demand.
"There are expectations the central government may ease credit controls in the latter part of the year, which means steel mills can get more money from the banks," said a shipping manager for an iron ore trading firm in Shanghai.
"That's another reason behind the rise in steel prices, and if they continue to rise I believe steel mills would start to restock on iron ore this week."
China's monetary tightening campaign, in the form of interest rate hikes and increases in banks' reserve requirement ratio, has limited the amount of loans available to steel mills.
There was little appetite for iron ore last week as caution about the state of the global economy restrained buying.
Two key indexes, based on spot deals in China, fell for a fourth straight session on Friday to their lowest in about two weeks. The Steel Index's 62-percent benchmark .IO62-CNI=SI eased 20 cents to $175.90 a tonne and a similar index by Metal Bulletin .IO62-CNO=MB eased 7 cents to $176.23.
Global miner BHP Billiton sold 61.2-grade MAC iron ore fines at $173.93 a tonne, cost and freight, and 62.5-grade Newman fines at $180.93 a tonne, at a tender on Friday.
"I thought the prices were a bit more expensive than I had expected. But people probably feel that prices will go up again this week with steel prices rising," said the Shanghai shipping manager.
Indian ore with 63.5/63 percent iron content was offered at $183-$185 a tonne on Monday, steady from Friday, Chinese consultancy Umetal said.
Traders said there are unlikely to be fresh cargoes from Indian miners with India shut for a public holiday. ($1 = 6.389 yuan)
* Shanghai rebar at 1-week top, mills may restock iron ore
* Baosteel price hike boosting steel demand outlook
By Manolo Serapio Jr
SINGAPORE, Aug 15 (Reuters) - Shanghai rebar futures rose for a fourth straight day on Monday to their highest in more than a week, spurred by expectations of firm demand in top consumer China.
Hopes that Chinese steel demand will stay strong ahead of the peak consumption season from mid-September should renew interest among mills to restock iron ore, the key steelmaking material, this week and boost prices that had dropped for most of last week.
The most-traded January rebar contract on the Shanghai Futures Exchange SRBc6 rose 0.9 percent to close at 4,854 yuan per tonne, just off its session-peak of 4,855 yuan, its highest since Aug. 5.
"Baosteel's move to increase prices was a good sign that steel demand will remain strong in September," said a trader in China's eastern Shandong province.
Baoshan Iron & Steel Co Ltd , China's biggest listed steelmaker, said on Friday it would raise prices of its main products for September, in anticipation that demand for flat steel products will pick up.
Unlike long steel products which had benefited from increased construction activity in China this year, makers of flat steel meant for automakers and producers of home appliances have seen margins squeezed by poor demand.
"There are expectations the central government may ease credit controls in the latter part of the year, which means steel mills can get more money from the banks," said a shipping manager for an iron ore trading firm in Shanghai.
"That's another reason behind the rise in steel prices, and if they continue to rise I believe steel mills would start to restock on iron ore this week."
China's monetary tightening campaign, in the form of interest rate hikes and increases in banks' reserve requirement ratio, has limited the amount of loans available to steel mills.
There was little appetite for iron ore last week as caution about the state of the global economy restrained buying.
Two key indexes, based on spot deals in China, fell for a fourth straight session on Friday to their lowest in about two weeks. The Steel Index's 62-percent benchmark .IO62-CNI=SI eased 20 cents to $175.90 a tonne and a similar index by Metal Bulletin .IO62-CNO=MB eased 7 cents to $176.23.
Global miner BHP Billiton sold 61.2-grade MAC iron ore fines at $173.93 a tonne, cost and freight, and 62.5-grade Newman fines at $180.93 a tonne, at a tender on Friday.
"I thought the prices were a bit more expensive than I had expected. But people probably feel that prices will go up again this week with steel prices rising," said the Shanghai shipping manager.
Indian ore with 63.5/63 percent iron content was offered at $183-$185 a tonne on Monday, steady from Friday, Chinese consultancy Umetal said.
Traders said there are unlikely to be fresh cargoes from Indian miners with India shut for a public holiday. ($1 = 6.389 yuan)
Saturday, August 6, 2011
ArcelorMittal to sell China JV stake to Nippon Steel
SHANGHAI (Reuters) - ArcelorMittal , the world's top steelmaker, has agreed to sell its 12 percent stake in an auto sheet joint venture with China's Baosteel and Japan's Nippon Steel to the Japanese firm, a company spokeswoman said on Friday.
The move will give Nippon Steel a 50 percent stake in the joint venture, Baosteel-NSC/Arcelor (BNA) Automotive Co, while Baosteel holds the other half.
The ArcelorMittal spokeswoman said the move is aimed at focusing on another automotive JV project with a middle-sized Chinese steelmaker, the Hunan Valin Group .
On Tuesday, the China Iron & Steel Association (CISA) criticised ArcelorMittal for not fulfilling its commitment to support Valin, saying the steel giant failed to provide the Chinese partner with the technical support needed for their joint venture auto sheet plant.
Chi Jingdong, CISA's deputy secretary general, also said ArcelorMittal did not fulfil promises to help the Chinese firm secure supplies of iron ore.
"China remains an important jurisdiction where ArcelorMittal, through its joint ventures, will continue to develop value-added steel products for the Chinese market," company spokeswoman Lynn Robbroeckx said in an email to Reuters.
Baosteel-NSC/Arcelor (BNA) Automotive Co mainly produces auto sheet for the Chinese market and has an annual production capacity of 1.7 million tonnes, with 900,000 tonnes of cold-rolled sheet and 800,000 tonnes of hot-dipped galvanized sheet.
The move will give Nippon Steel a 50 percent stake in the joint venture, Baosteel-NSC/Arcelor (BNA) Automotive Co, while Baosteel holds the other half.
The ArcelorMittal spokeswoman said the move is aimed at focusing on another automotive JV project with a middle-sized Chinese steelmaker, the Hunan Valin Group .
On Tuesday, the China Iron & Steel Association (CISA) criticised ArcelorMittal for not fulfilling its commitment to support Valin, saying the steel giant failed to provide the Chinese partner with the technical support needed for their joint venture auto sheet plant.
Chi Jingdong, CISA's deputy secretary general, also said ArcelorMittal did not fulfil promises to help the Chinese firm secure supplies of iron ore.
"China remains an important jurisdiction where ArcelorMittal, through its joint ventures, will continue to develop value-added steel products for the Chinese market," company spokeswoman Lynn Robbroeckx said in an email to Reuters.
Baosteel-NSC/Arcelor (BNA) Automotive Co mainly produces auto sheet for the Chinese market and has an annual production capacity of 1.7 million tonnes, with 900,000 tonnes of cold-rolled sheet and 800,000 tonnes of hot-dipped galvanized sheet.
Monday, March 21, 2011
Baosteel ranks the third on the world class steel makers list
Monday, 21 Mar 2011
According to the latest list of the 20 largest steel enterprises in the world, China 9 leading steelmakers are on the list. ArcelorMittal is still the top steel producer in the world. China HBIS and Baosteel rank the second and the third.
Last year, the world produced crude steel of record 1.41 billion tonnes up by 15%YoY. All the major steel producing countries reported double digit growth. However, the global steel production failed to recover the levels before the financial crisis.
The data shows that ThyssenKrupp crude steel production quickly rose by 52%YoY and the company ranks the 19th on the list.
Monday, March 7, 2011
Chinese steelmakers to bear heavy pressure of price correction
Monday, 07 Mar 2011
It is reported that an analyst in an interview said “EXW prices of large scale steelmakers may be stable in April, but will certainly witness a correction in May.”
Actually, analysts were not the only group who held the pessimistic attitude to market. Part of traders decided to stop accepting ordering from steelmakers due to upside down between EXW prices and spot prices. It is possible that the operation in H1 of 2011 may be similar to that in May and June 2010.
1. Pressures after continuous price adjustment
Large scale steelmakers like WISCO, Baosteel, Angang, Benxi Iron and Steel, Shougang and HBIS issued EXW prices for March delivery after Lunar New Year with main products, CRC, HRC increased by CNY 300 per tonne.
WISCO was the first steel mill to raise EXW prices with margin CNY 200 per tonne to CNY 400 per tonne for instance
1. Wire rod up CNY 200 per tonne to CNY 330 per tonne
2. HRC up CNY 200 per tonne to CNY 400 per tonne
3. CRC up CNY 100 per tonne tone CNY 300 per tonne
4. Galvanized products up CNY 200 per tonne to CNY 350 per tonne
Following WISCO, Baosteel also raised its March products prices
1. HRC up CNY 300 per tonne
2. CRC appliance plate CNY 260 per tonne
3. Auto plate up CNY 300 per tonne
4. Galvanized up CNY 260 per tonne
5. Slab up CNY 300 per tonne
After that, Angang also raised its EXW with growth margin similar to WISCO and Baosteel.
After EXW prices increased a lot, costs of traders and other end-users were pulled up rapidly. In addition, domestic steel prices showed plunge in the second week after Lunar New Year, showing upside down between spot prices and EXW prices. Part of traders and end users had to stop ordering. And they estimated that the upside down situation will not last long, possibly ending with steelmakers compromise to reduce EXW prices.
However, steelmakers may not cut its EXW prices so soon and given they bears heavy pressures. They may possibly give traders kinds of discount instead of direct price decrease.
(sourced:mysteel)Actually, analysts were not the only group who held the pessimistic attitude to market. Part of traders decided to stop accepting ordering from steelmakers due to upside down between EXW prices and spot prices. It is possible that the operation in H1 of 2011 may be similar to that in May and June 2010.
1. Pressures after continuous price adjustment
Large scale steelmakers like WISCO, Baosteel, Angang, Benxi Iron and Steel, Shougang and HBIS issued EXW prices for March delivery after Lunar New Year with main products, CRC, HRC increased by CNY 300 per tonne.
WISCO was the first steel mill to raise EXW prices with margin CNY 200 per tonne to CNY 400 per tonne for instance
1. Wire rod up CNY 200 per tonne to CNY 330 per tonne
2. HRC up CNY 200 per tonne to CNY 400 per tonne
3. CRC up CNY 100 per tonne tone CNY 300 per tonne
4. Galvanized products up CNY 200 per tonne to CNY 350 per tonne
Following WISCO, Baosteel also raised its March products prices
1. HRC up CNY 300 per tonne
2. CRC appliance plate CNY 260 per tonne
3. Auto plate up CNY 300 per tonne
4. Galvanized up CNY 260 per tonne
5. Slab up CNY 300 per tonne
After that, Angang also raised its EXW with growth margin similar to WISCO and Baosteel.
After EXW prices increased a lot, costs of traders and other end-users were pulled up rapidly. In addition, domestic steel prices showed plunge in the second week after Lunar New Year, showing upside down between spot prices and EXW prices. Part of traders and end users had to stop ordering. And they estimated that the upside down situation will not last long, possibly ending with steelmakers compromise to reduce EXW prices.
However, steelmakers may not cut its EXW prices so soon and given they bears heavy pressures. They may possibly give traders kinds of discount instead of direct price decrease.
Tags :wire rod prices, galvanized products, auto plate, slab, Lunar New Year, Angang, Benxi Iron and Steel, Shougang,
Thursday, March 3, 2011
Ningbo Steel to reach capacity of 6 million tonnes
Thursday, 03 Mar2011, Mysteel
It is reported that Ningbo Steel, a subsidiary of Baosteel is planning to make new breakthrough in energy saving and environmental protection project. It has selected 3 energy saving and environmental protection plans with a total investment of CNY 2.28 billion. So far, it has made early following preparations for the project.
1. Ningbo Steel will build a noval environmentally friendly sintering machine with 430 square meters and a set of desulphurization of sintering gas equipment with an investment of CNY 630 million.
2. It will invest CNY 600 million to build a set of slag secondary operation facility with annual capacity of 800,000 tonnes, slag levigating production line with annual capacity of 2×300,000 tonnes etc in order to enhance the utilization level of industrial solid waste.
3. NingboSteel will build new strip continuous casting tandem rolling production line, pickling plates production line, galvanized production line with a total investment of CNY 1.05 billion with annual capacity of 200,000 tonnes for pickling products and hot dip galvanized products of 300,000 tonnes, which will fill in the gap for producing strip continuous casting tandem rolling steel in China.
As per report desulphurization of sintering gas equipment project and solid waste handling project will start construction in the first half of 2011; strip continuous casting tandem rolling project and hot dip galvanized project will start construction in Aug, 2011.
1. Ningbo Steel will build a noval environmentally friendly sintering machine with 430 square meters and a set of desulphurization of sintering gas equipment with an investment of CNY 630 million.
2. It will invest CNY 600 million to build a set of slag secondary operation facility with annual capacity of 800,000 tonnes, slag levigating production line with annual capacity of 2×300,000 tonnes etc in order to enhance the utilization level of industrial solid waste.
3. NingboSteel will build new strip continuous casting tandem rolling production line, pickling plates production line, galvanized production line with a total investment of CNY 1.05 billion with annual capacity of 200,000 tonnes for pickling products and hot dip galvanized products of 300,000 tonnes, which will fill in the gap for producing strip continuous casting tandem rolling steel in China.
As per report desulphurization of sintering gas equipment project and solid waste handling project will start construction in the first half of 2011; strip continuous casting tandem rolling project and hot dip galvanized project will start construction in Aug, 2011.
Sunday, February 27, 2011
Steel price may stop rising and turn to stability - MOFCOM
Sunday, 27 Feb 2011
According to Ministry of Commerce of China, domestic steel price gained 1.1% last week versus the previous week but social inventory of construction steel products hiked by 9.1%WoW or soaring by 44.7%MoM. It is expected that the steel price will stop moving up and tend to be flat in short period given the increasing output of steel makers.
The increasing operating rate in steel sector caused the coke price rise, with metallurgical coke in particular, seeing a lift of 2.3%. As the weather is getting warmer demand for construction steel is rallying, fueling the increase of demand for coke. Besides, the price rise of coking coal, the material of coke-making, pushed up the cost. So coke price is expected to climb up slightly.
Although steel prices have moved up slightly owing to BaoSteel and other major mills’ lifts of EXW prices as well as the rising material prices, the fact that domestic steel makers are now expanding production and their output will therefore apparently go up, will be enough to anticipate that steel price will stop rising and turn to stability in short period.
The increasing operating rate in steel sector caused the coke price rise, with metallurgical coke in particular, seeing a lift of 2.3%. As the weather is getting warmer demand for construction steel is rallying, fueling the increase of demand for coke. Besides, the price rise of coking coal, the material of coke-making, pushed up the cost. So coke price is expected to climb up slightly.
Although steel prices have moved up slightly owing to BaoSteel and other major mills’ lifts of EXW prices as well as the rising material prices, the fact that domestic steel makers are now expanding production and their output will therefore apparently go up, will be enough to anticipate that steel price will stop rising and turn to stability in short period.
(Sourced:MySteel.net)
Tuesday, February 22, 2011
Baosteel aims to complete integration of Guangdong Steel in 2011
Tuesday, 22 February 2011
At a recent meeting of the China Iron and Steel Association (CISA), Xu Lejiang, the president of Chinese steel giant Baosteel Group, announced that the group aims to push through its program for the integration of Guangdong Steel Group in 2011.
In 2008, Baosteel decided to restructure two steel producers in the southeastern Chinese province of Guangdong, i.e., Shanguan Steel Group and Guangzhou Steel Group, and thus to set up a new company named Guangdong Steel Group, in which Baosteel would hold 80 percent of shares. Under the framework of its integration program, Baosteel also decided to eliminate 15 million mt of outdated steelmaking capacity in the province and to build a steelmaking base in Zhanjiang, Guangdong with an annual output capacity of over 10 million mt.
Mr. Xu stated that, while the restructuring work had been slow, Baosteel aimed to complete the integration of Guangdong Steel within the current year.
In 2008, Baosteel decided to restructure two steel producers in the southeastern Chinese province of Guangdong, i.e., Shanguan Steel Group and Guangzhou Steel Group, and thus to set up a new company named Guangdong Steel Group, in which Baosteel would hold 80 percent of shares. Under the framework of its integration program, Baosteel also decided to eliminate 15 million mt of outdated steelmaking capacity in the province and to build a steelmaking base in Zhanjiang, Guangdong with an annual output capacity of over 10 million mt.
Mr. Xu stated that, while the restructuring work had been slow, Baosteel aimed to complete the integration of Guangdong Steel within the current year.
Tags: China , Far East , Baosteel , production , investments , steelmaking , East Asia and Pacific
Saturday, February 19, 2011
Chinese buyers expecting lower iron ore prices
Saturday, 19 Feb 2011
(Sourced from www.theaustralian.com.au)
Tags:Wuhan Steel Group, Japan, Nippon Steel Corp, Spot iron ore prices, Spot prices for 63.5% Indian fines, raw material,
Chinese mills and traders, as well as Australian miners expect iron ore prices to fall by at least 10% later in the year as the world biggest steelmaking nation steps up the overhaul of the sector as part of the country new Five Year Plan.
China largest steelmaker, Baosteel lifted its prices this week for the third month in a row even as it continued its acquisition and expansion binge, but authorities signaled that overall output growth in the sector was planned to slow this year. Another top-five Chinese steelmaker, Wuhan Steel and Japan Nippon Steel have also increased their prices in recent days.
Spot prices for high-grade Indian ore hit USD 200 per tonne this week and have already risen more than 12% this year after jumping over 40% last year. The higher prices will feed into the next quarterly contracts which use a weighted average from the previous quarter.
As well as higher iron ore prices, steelmakers have faced higher coking coal costs because of flooding in Queensland. Ironically higher steel prices will feed into Australian inflation as we buy back finished steel products from China, Japan and South Korea. But traders and mill staff predict that while high iron ore prices will continue for several months and they will fall back in the second half of the year.
China largest steelmaker, Baosteel lifted its prices this week for the third month in a row even as it continued its acquisition and expansion binge, but authorities signaled that overall output growth in the sector was planned to slow this year. Another top-five Chinese steelmaker, Wuhan Steel and Japan Nippon Steel have also increased their prices in recent days.
Spot prices for high-grade Indian ore hit USD 200 per tonne this week and have already risen more than 12% this year after jumping over 40% last year. The higher prices will feed into the next quarterly contracts which use a weighted average from the previous quarter.
As well as higher iron ore prices, steelmakers have faced higher coking coal costs because of flooding in Queensland. Ironically higher steel prices will feed into Australian inflation as we buy back finished steel products from China, Japan and South Korea. But traders and mill staff predict that while high iron ore prices will continue for several months and they will fall back in the second half of the year.
(Sourced from www.theaustralian.com.au)
Tags:Wuhan Steel Group, Japan, Nippon Steel Corp, Spot iron ore prices, Spot prices for 63.5% Indian fines, raw material,
Friday, February 4, 2011
Baosteel Huangshi Branch sales reach all time high in 2010
Friday, 04 Feb 2011
Last year lead by the goal of the new production line achieving four results and with flexible operation and accurate market positioning, Baosteel Co Ltd Huangshi Branch had its production and sales exceeding the annual plan and reaching all time high. Meanwhile, sales rate, contract completion rate and capital return rate all reached 100% with sales revenue and profits covering 106% and 124% of the yearly plan respectively.
Huangshi Branch originally had two production lines: galvanizing and color coating. The placodes required in production relied on imports for a long time. To change the passive situation and for new development opportunities, in the past two years, the branch increased investment in equipment and built two new production lines pickling and cold rolling. Last year, the two production lines achieved four results consecutively. On this basis, Huangshi Branch actively adjusts operating strategy, optimizes variety and market development and makes new breakthroughs in production, sales and research and development.
As for new production lines' upgrading and capacity building, by relying on site improvement and stabilizing quality, Huangshi Branch has a number of collaborative research results, for example, improving product quality by way of raw material quality, technology and equipment capability. Through equipment modification and process optimization, scratched products in cold rolling mill decreased by 80%. By optimizing the rolling process and exploring the optimal operation and running model, cold rolling mill production rose month by month from July to November last year. Huangshi Branch allocates resources rationally, trackes the market closely and makes changes in marketing strategy.
In last October, as the sales of hard coils reached standstill while galvanized products had good market situation, Huangshi Branch increased the sales of galvanized sheet and allocated the processing of hard coils to outsiders which expanded the production of galvanized sheets and achieved maximum benefit. In addition, the Branch also has new marketing perspective for new production lines. The cold rolling mill complex, originally designed only for inside use is now put to sales and now has accumulated a number of steady customers.
In research and development of new products, Huangshi Branch insists on seeking breakthrough by differentiating. According to user special needs, the company developed wide galvanized plates, extra-thick galvanized coated plates and modified silicon polyester color coated plates, accelerated the transformation of large scale production and achieved bulk supply. Based on the original products of the new unit complex, it further develops new technology, explores equipment potential and makes trial in ultra-thin specification which broke the limit of unit design.
Currently, the company has formed four major categories of products: pickled, cold rolled, galvanized and color coated products. The market is further expanded, with the sales of key project and stable customer oriented products reaching more than 50%. At the same time, the internal logistics has become balanced, enterprise system operating cost is reduced and the ability to withstand market risks and the comprehensive competitiveness are enhanced.
Last year lead by the goal of the new production line achieving four results and with flexible operation and accurate market positioning, Baosteel Co Ltd Huangshi Branch had its production and sales exceeding the annual plan and reaching all time high. Meanwhile, sales rate, contract completion rate and capital return rate all reached 100% with sales revenue and profits covering 106% and 124% of the yearly plan respectively.
Huangshi Branch originally had two production lines: galvanizing and color coating. The placodes required in production relied on imports for a long time. To change the passive situation and for new development opportunities, in the past two years, the branch increased investment in equipment and built two new production lines pickling and cold rolling. Last year, the two production lines achieved four results consecutively. On this basis, Huangshi Branch actively adjusts operating strategy, optimizes variety and market development and makes new breakthroughs in production, sales and research and development.
As for new production lines' upgrading and capacity building, by relying on site improvement and stabilizing quality, Huangshi Branch has a number of collaborative research results, for example, improving product quality by way of raw material quality, technology and equipment capability. Through equipment modification and process optimization, scratched products in cold rolling mill decreased by 80%. By optimizing the rolling process and exploring the optimal operation and running model, cold rolling mill production rose month by month from July to November last year. Huangshi Branch allocates resources rationally, trackes the market closely and makes changes in marketing strategy.
In last October, as the sales of hard coils reached standstill while galvanized products had good market situation, Huangshi Branch increased the sales of galvanized sheet and allocated the processing of hard coils to outsiders which expanded the production of galvanized sheets and achieved maximum benefit. In addition, the Branch also has new marketing perspective for new production lines. The cold rolling mill complex, originally designed only for inside use is now put to sales and now has accumulated a number of steady customers.
In research and development of new products, Huangshi Branch insists on seeking breakthrough by differentiating. According to user special needs, the company developed wide galvanized plates, extra-thick galvanized coated plates and modified silicon polyester color coated plates, accelerated the transformation of large scale production and achieved bulk supply. Based on the original products of the new unit complex, it further develops new technology, explores equipment potential and makes trial in ultra-thin specification which broke the limit of unit design.
Currently, the company has formed four major categories of products: pickled, cold rolled, galvanized and color coated products. The market is further expanded, with the sales of key project and stable customer oriented products reaching more than 50%. At the same time, the internal logistics has become balanced, enterprise system operating cost is reduced and the ability to withstand market risks and the comprehensive competitiveness are enhanced.
Thursday, January 27, 2011
China to tackle steel overcapacity in new plan - Report
Thursday, 27 Jan 2011
Economic Information Daily citing a senior industry official as saying that China will renew its efforts to rein in overcapacity in its sprawling steel sector in the next five years.
The paper, run by state news agency Xinhua quoted an official with the Ministry of Industry and Information Technology as saying that China would focus on satisfying domestic steel demand over the 2011-2015 period.
While China draft five year plan for the sector was still under discussion, it already includes more plans to close down inefficient small scale producers and consolidate output in a number of very large scale steel enterprises.
China aims to put more than 60% of national steel capacity in the hands of its top 10 firms by the end of 2015 and big state owned firms like Baosteel and the Hebei Iron and Steel Group would be encouraged to increase annual capacity to 50 million tonnes to 60 million tonnes over the period.
China has long sought to strengthen the position of the big state-owned majors at the expense of thousands of small private mills, but flourishing demand has kept many of the minnows in business. While progress was made last year, the shift came largely as a result of one-off campaigns to meet energy efficiency targets which led to the temporary closure of hundreds of small mills. (Sourced from Economic Information Daily)
Economic Information Daily citing a senior industry official as saying that China will renew its efforts to rein in overcapacity in its sprawling steel sector in the next five years.
The paper, run by state news agency Xinhua quoted an official with the Ministry of Industry and Information Technology as saying that China would focus on satisfying domestic steel demand over the 2011-2015 period.
While China draft five year plan for the sector was still under discussion, it already includes more plans to close down inefficient small scale producers and consolidate output in a number of very large scale steel enterprises.
China aims to put more than 60% of national steel capacity in the hands of its top 10 firms by the end of 2015 and big state owned firms like Baosteel and the Hebei Iron and Steel Group would be encouraged to increase annual capacity to 50 million tonnes to 60 million tonnes over the period.
China has long sought to strengthen the position of the big state-owned majors at the expense of thousands of small private mills, but flourishing demand has kept many of the minnows in business. While progress was made last year, the shift came largely as a result of one-off campaigns to meet energy efficiency targets which led to the temporary closure of hundreds of small mills. (Sourced from Economic Information Daily)
Sunday, January 16, 2011
Iron ore price negotiations - views of BaoSteel group chairman Xu Lejiang
Sunday, 16 Jan 2011
Baosteel Group Chairman Mr Xu Lejiang recently in the interview said “I know you most want to talk about? Iron ore negotiations. Speaking of China Steel Industry, it is indeed a topic around not in the past.”
In Mr Xu Lejiang view the subject of iron ore, like side prism which reflects different aspects of China steel industry:
1. Iron and steel industry for many years without the rapid development of China macroeconomic stability will not get the industrial food strong support
2. Excessive rate of development of steel industry, but also to the industry repeatedly encountered a bottleneck mouth
3. Ore price negotiations face difficulties, eliminate backward production capacity difficult, industry concentration falling instead of rising, core technology and the introduction of The Road barrier.
He said "Extensive development of China steel industry, the old road has come to head, mouth bottleneck is a breakthrough. In steel production has accounted for more than half the global total today, China's steel industry from large to strong adjustment and transition will certainly be the result.”
From the iron ore difficult situation in inverted extract a competitive edge, International iron ore pricing mechanism of change is this year hits one of the highest financial events. Mr Xu Lejiang said is the world's three major Mine Monopoly enterprises with stage in short supply, resulting in such a situation.
He said “Late last century, the global iron ore supply exceeding demand, integration of the advantages of the three ore mines were relatively monopolistic market position. This century, the Chinese steel output rose rapidly from 100 million tons last year, 568 million tonnes Global steel production rose from 700 million tonnes more than 1.3 billion tonnes. Mines and steel mills as the upstream and downstream, the development pace of inconsistent supply and demand balance for the time being to break the iron ore price agreement mechanism for long-crumbling.”
He said “In this difficult situation of iron ore, on one hand of course, there are three major mines just today, not tomorrow, seeking short term interest factor, which will be the test of history is not permanent, but the other On the one hand, also reflects the low concentration of Chinese iron and steel industry, steel demand in different inconsistency issues such as trade order will not ring true.”
He added “The ore pricing mechanism changes, the Baosteel and other Chinese steel mills have brought no small impact on the future ownership of the steel to different starting line in a competition is a challenge and an opportunity make their own forced out really competitive, reflected. Similarly, the hot metal to produce different quality, different value added products. Who steel making capacity, who will be able to produce good products, you can win the market competitiveness.”
He concluded “Forced mechanism will extract a Chinese steel industry walk up the resources of security system. Baosteel as early as the beginning of this century mining downturn, the CVRD and Rio Tinto and other miners venture Cooperation Lock mine some interest, to some extent the interests of achieving a hedge. Ore prices skyrocketing in the present case, there will be new investors into the mining industry and a round of going out the formation of new iron ore supply capacity, the global ore trade pattern will return to a win win situation.”
Courtsey news by business.ezinemark.com
Baosteel Group Chairman Mr Xu Lejiang recently in the interview said “I know you most want to talk about? Iron ore negotiations. Speaking of China Steel Industry, it is indeed a topic around not in the past.”
In Mr Xu Lejiang view the subject of iron ore, like side prism which reflects different aspects of China steel industry:
1. Iron and steel industry for many years without the rapid development of China macroeconomic stability will not get the industrial food strong support
2. Excessive rate of development of steel industry, but also to the industry repeatedly encountered a bottleneck mouth
3. Ore price negotiations face difficulties, eliminate backward production capacity difficult, industry concentration falling instead of rising, core technology and the introduction of The Road barrier.
He said "Extensive development of China steel industry, the old road has come to head, mouth bottleneck is a breakthrough. In steel production has accounted for more than half the global total today, China's steel industry from large to strong adjustment and transition will certainly be the result.”
From the iron ore difficult situation in inverted extract a competitive edge, International iron ore pricing mechanism of change is this year hits one of the highest financial events. Mr Xu Lejiang said is the world's three major Mine Monopoly enterprises with stage in short supply, resulting in such a situation.
He said “Late last century, the global iron ore supply exceeding demand, integration of the advantages of the three ore mines were relatively monopolistic market position. This century, the Chinese steel output rose rapidly from 100 million tons last year, 568 million tonnes Global steel production rose from 700 million tonnes more than 1.3 billion tonnes. Mines and steel mills as the upstream and downstream, the development pace of inconsistent supply and demand balance for the time being to break the iron ore price agreement mechanism for long-crumbling.”
He said “In this difficult situation of iron ore, on one hand of course, there are three major mines just today, not tomorrow, seeking short term interest factor, which will be the test of history is not permanent, but the other On the one hand, also reflects the low concentration of Chinese iron and steel industry, steel demand in different inconsistency issues such as trade order will not ring true.”
He added “The ore pricing mechanism changes, the Baosteel and other Chinese steel mills have brought no small impact on the future ownership of the steel to different starting line in a competition is a challenge and an opportunity make their own forced out really competitive, reflected. Similarly, the hot metal to produce different quality, different value added products. Who steel making capacity, who will be able to produce good products, you can win the market competitiveness.”
He concluded “Forced mechanism will extract a Chinese steel industry walk up the resources of security system. Baosteel as early as the beginning of this century mining downturn, the CVRD and Rio Tinto and other miners venture Cooperation Lock mine some interest, to some extent the interests of achieving a hedge. Ore prices skyrocketing in the present case, there will be new investors into the mining industry and a round of going out the formation of new iron ore supply capacity, the global ore trade pattern will return to a win win situation.”
Courtsey news by business.ezinemark.com
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