June02, 2011
The third quarter's iron ore prices offered by the big three suppliers, namely, Vale, Rio Tinto and BHP Billiton, to China's steelmakers have seen a drop of an average of $1.5 per metric ton.
Clearly, this is good news for Chinese steelmakers. However, ongoing power shortages may dampen steelmaker output, but help prop up the steel price.
By May 30, the iron ore stock at China's 25 seaports was at a high level – 93.07 million tons, up 610,000 tons week-on-week.
Analysts said steelmakers are likely to put off iron ore orders as they expect prices offered by the big three to be further cut.
source Global Times
Showing posts with label China's steel industry. Show all posts
Showing posts with label China's steel industry. Show all posts
Thursday, June 2, 2011
Monday, March 14, 2011
China exports CT80 coiled tubes for the first time
Monday, 14 Mar 2011
It is reported that Shaanxi Province based Chinese pipe maker Baoji Petroleum Steel Pipe Co has announced that a shipment consisting of its CT80 coiled tubes in diameters of 38.1mm and 44.45mm is now on its way to the Middle East.
The shipment marks the first time CT80 coiled tubes have been exported from China.
CT80 coiled tubes are mainly applied in the oilfield drilling activities.
In June 2009, Baoji Petroleum Steel Pipe produced the product in question for the first time. To date, apart from Baoji Petroleum Steel Pipe, just a few producers in Japan and France can manufacture this kind of product.
Tags : oilfield drilling activities, Japan, France
It is reported that Shaanxi Province based Chinese pipe maker Baoji Petroleum Steel Pipe Co has announced that a shipment consisting of its CT80 coiled tubes in diameters of 38.1mm and 44.45mm is now on its way to the Middle East.
The shipment marks the first time CT80 coiled tubes have been exported from China.
CT80 coiled tubes are mainly applied in the oilfield drilling activities.
In June 2009, Baoji Petroleum Steel Pipe produced the product in question for the first time. To date, apart from Baoji Petroleum Steel Pipe, just a few producers in Japan and France can manufacture this kind of product.
Tags : oilfield drilling activities, Japan, France
Tuesday, March 8, 2011
Longhai Steel reports unaudited highlights for 2010
Tuesday, 08 Mar 2011
Longhai Steel Inc a producer of steel wire products in the People Republic of China announced its preliminary unaudited financial highlights for the year ended December 31 2010.
The financial results provided in this news release are preliminary, unaudited, and subject to adjustment. Longhai Steel expects to release its audited financial results by March 15 2011.
Year 2010 preliminary unaudited highlights
1. Net revenues were USD 475.0 million up 27.1% from 2009.
2. Gross profit was USD 18.6 million up 10.4% from 2009.
3. Net income was USD 11.5 million down 2.0% from 2009.
4. Basic and diluted earnings per share were USD 1.15, down 3.4% from 2009.
5. Weighted average shares outstanding increased 1.2% in 2010 to 9,965,068 shares.
Mr Chaojun Wang Chairman and Chief Executive Officer of Longhai Steel said, "We are pleased with our operating performance for 2010 and expect to continue our good growth in 2011. Our fourth quarter 2011 was especially good, with revenues up 60.7% and net income up 28.5% from the fourth quarter 2009. During the summer of 2010, we reduced wire prices to respond to competitive pressures from a larger than expected local supply of wire. Since that situation appeared to be temporary, we believe that the spreads between billet costs and wire prices have returned to more normal relationships for 2011. As we did in 2010, we expect to benefit for the next several years from the growing demand for steel wire used for construction and infrastructure as China continues its dramatic urbanization and modernization."
Net revenues increased 27.1% to USD 475.0 million in the year ended December 31 2010 from USD 373.7 million in 2009 primarily due to a 17.8% increase in the average price for wire per ton. Longhai Steel's tonnage sold in 2010 increased 6.9% to 906,836 metric tons from 848,063 tons in 2009.
Cost of goods sold increased 27.9% to USD 456.4 million in 2010 from USD 356.8 million in 2009. Cost of goods sold as a percentage of net revenues was 96.1% in 2010 compared with 95.5% in 2009. The cost of goods sold is largely determined by movements in steel billet prices and by volume. Billets typically account for more than 95% of cost of goods sold. The weighted average cost of goods sold per ton of wire increased 18.8% in 2010 from 2009.
Gross profit increased 10.4% to USD 18.6 million in 2010 from USD 16.8 million in 2009. The gross profit margin decreased to 3.9% in 2010 from 4.5% in 2009 mainly due to narrowing of the spread between billet purchase prices and wire sales prices, as the company lowered prices to respond to competitive pricing pressures from larger-than-expected local supplies of wire during the summer of 2010.
General and administrative expenses increased 100.9% to USD 2.2 million in 2010 from USD 1.1 million in 2009 due to a stock option granted to an executive and higher expenses for social insurance, and expenses related to the company's preparation for a securities offering and for the trading of its common shares on NASDAQ.
Income tax increased 2.4% to USD 4.0 million in 2010 from USD 3.9 million in 2009, with the effective tax rate of 25.8% in 2010 and 25.0% in 2009. Net income decreased 2.0% to USD 11.5 million in 2010 from USD 11.7 million in 2009. Basic and diluted earnings per share decreased 3.4% to USD 1.15 in 2010 from USD 1.19 in 2009.
As of December 31 2010, cash and cash equivalents were USD 0.3 million, shareholders' equity was USD 44.5 million and total assets were USD 78.0 million.
Longhai Steel Inc a producer of steel wire products in the People Republic of China announced its preliminary unaudited financial highlights for the year ended December 31 2010.
The financial results provided in this news release are preliminary, unaudited, and subject to adjustment. Longhai Steel expects to release its audited financial results by March 15 2011.
Year 2010 preliminary unaudited highlights
1. Net revenues were USD 475.0 million up 27.1% from 2009.
2. Gross profit was USD 18.6 million up 10.4% from 2009.
3. Net income was USD 11.5 million down 2.0% from 2009.
4. Basic and diluted earnings per share were USD 1.15, down 3.4% from 2009.
5. Weighted average shares outstanding increased 1.2% in 2010 to 9,965,068 shares.
Mr Chaojun Wang Chairman and Chief Executive Officer of Longhai Steel said, "We are pleased with our operating performance for 2010 and expect to continue our good growth in 2011. Our fourth quarter 2011 was especially good, with revenues up 60.7% and net income up 28.5% from the fourth quarter 2009. During the summer of 2010, we reduced wire prices to respond to competitive pressures from a larger than expected local supply of wire. Since that situation appeared to be temporary, we believe that the spreads between billet costs and wire prices have returned to more normal relationships for 2011. As we did in 2010, we expect to benefit for the next several years from the growing demand for steel wire used for construction and infrastructure as China continues its dramatic urbanization and modernization."
Net revenues increased 27.1% to USD 475.0 million in the year ended December 31 2010 from USD 373.7 million in 2009 primarily due to a 17.8% increase in the average price for wire per ton. Longhai Steel's tonnage sold in 2010 increased 6.9% to 906,836 metric tons from 848,063 tons in 2009.
Cost of goods sold increased 27.9% to USD 456.4 million in 2010 from USD 356.8 million in 2009. Cost of goods sold as a percentage of net revenues was 96.1% in 2010 compared with 95.5% in 2009. The cost of goods sold is largely determined by movements in steel billet prices and by volume. Billets typically account for more than 95% of cost of goods sold. The weighted average cost of goods sold per ton of wire increased 18.8% in 2010 from 2009.
Gross profit increased 10.4% to USD 18.6 million in 2010 from USD 16.8 million in 2009. The gross profit margin decreased to 3.9% in 2010 from 4.5% in 2009 mainly due to narrowing of the spread between billet purchase prices and wire sales prices, as the company lowered prices to respond to competitive pricing pressures from larger-than-expected local supplies of wire during the summer of 2010.
General and administrative expenses increased 100.9% to USD 2.2 million in 2010 from USD 1.1 million in 2009 due to a stock option granted to an executive and higher expenses for social insurance, and expenses related to the company's preparation for a securities offering and for the trading of its common shares on NASDAQ.
Income tax increased 2.4% to USD 4.0 million in 2010 from USD 3.9 million in 2009, with the effective tax rate of 25.8% in 2010 and 25.0% in 2009. Net income decreased 2.0% to USD 11.5 million in 2010 from USD 11.7 million in 2009. Basic and diluted earnings per share decreased 3.4% to USD 1.15 in 2010 from USD 1.19 in 2009.
As of December 31 2010, cash and cash equivalents were USD 0.3 million, shareholders' equity was USD 44.5 million and total assets were USD 78.0 million.
Xuzhou first blast furnace above 1000 cum into operation in May
Tuesday, 08 Mar 2011 | mysteel
It is reported that the blast furnace of 1280 cum and steel and rolling steel production line of Xuzhou South East Steel Co Ltd was for final installation and commissioning on 2nd March.
The blast furnace is planned to put into operation on May 1st adding new capacity of 1.5 million tonnes special steel with annual capacity of 3 million tonnes.
The blast furnace project started on March 28th 2010 with total investment of CNY 3 billion. It is said that in the following two or three years, South East Steel will build another two blast furnaces of 1280 cum and smelting and rolling steel production line, adding new capacity of 3 million tonnes achieving total capacity of 6 million tonnes.
Shougang ink pact with Guiyang to forge special material base
Tuesday, 08 Mar 2011
It is reported that Mr Yuan Zhou Mayor of city Guiyang the capital of Guizhou Province and Mr Zhu Jimin President of Shougang Group met lately in Beijing talking about the project of building Guizhou Steel new and special materials cyclical economic industrial base.
As per report, with the gradual expansion of Guiyang city, Guizhou Steel which now is sited in downtown area has become an inconvenience for the transportation, a damager for the environment, and thus a hindrance to the further development of the city. For this reason, Guiyang government and Shougang decided to sign agreement to move the mill to the town of Zhazuo in county Xiuwen and build a new materials cyclical economic industrial base.
This project will be funded and held by Shougang Group with above CNY 10 billion and be completed in three years. Upon being built, the effluent and domestic sewage will be reclaimed after treatment and the solid wastes will all meet the national standards.(sourced chinanews)
As per report, with the gradual expansion of Guiyang city, Guizhou Steel which now is sited in downtown area has become an inconvenience for the transportation, a damager for the environment, and thus a hindrance to the further development of the city. For this reason, Guiyang government and Shougang decided to sign agreement to move the mill to the town of Zhazuo in county Xiuwen and build a new materials cyclical economic industrial base.
This project will be funded and held by Shougang Group with above CNY 10 billion and be completed in three years. Upon being built, the effluent and domestic sewage will be reclaimed after treatment and the solid wastes will all meet the national standards.(sourced chinanews)
Thursday, March 3, 2011
Chinese steel industry gains profit margin of less than 3pct
Thursday,03 Marh2011 | My Steel
According to Mr Deng Qilin GM of Wuhan Iron & Steel Group Co Ltd, steel industry profitability decreased last year and large and medium steel enterprises average sales profit margin witness only 2.91% last year far lower than national industries average profit margin of 6%.
As for the decreasing profitability, Mr Deng believed that it is the result of internal causes coupled with external causes
1. China steel supply and demand conflict is prominent due to the large amount. China crude steel output topped 0.63 billion tonnes last year, which surpassed requirement of the national economy. The oversupply in domestic steel market advanced decrease of steel prices
2. The international iron ore prices increase squeezed steel industry profit space. Deng said that procurement costs of imported iron ore, coking coal and other raw materials has been continuously increasing since the beginning of last year. China imported iron ore reached over 0.6 billion tonnes while the prices rise generated loss of several CNY 100 billion in steel industry every year.
Confronted with great pressure of cost increase, Mr Deng said that the national steel industry should seriously put into practice of steel polices including industry revitalization plan and adjust product structure against market fluctuation.
Mr Deng Qilin WISCO GM officially stepped down the position of president of China Iron & Steel Association in February this year. As the president of CISA for two years, Mr Deng led China steel enterprises successfully against international economy crisis.
As for the decreasing profitability, Mr Deng believed that it is the result of internal causes coupled with external causes
1. China steel supply and demand conflict is prominent due to the large amount. China crude steel output topped 0.63 billion tonnes last year, which surpassed requirement of the national economy. The oversupply in domestic steel market advanced decrease of steel prices
2. The international iron ore prices increase squeezed steel industry profit space. Deng said that procurement costs of imported iron ore, coking coal and other raw materials has been continuously increasing since the beginning of last year. China imported iron ore reached over 0.6 billion tonnes while the prices rise generated loss of several CNY 100 billion in steel industry every year.
Confronted with great pressure of cost increase, Mr Deng said that the national steel industry should seriously put into practice of steel polices including industry revitalization plan and adjust product structure against market fluctuation.
Mr Deng Qilin WISCO GM officially stepped down the position of president of China Iron & Steel Association in February this year. As the president of CISA for two years, Mr Deng led China steel enterprises successfully against international economy crisis.
Tuesday, March 1, 2011
Mergers to continue in Chinese steel industry in 12th Five year Plan
Tuesday, 01 Mar 2011
China Securities Journal reported that Chinese steel market eyed rapid development since entering 21st century with the growth of crude steel output averaging by 21.1%YoY. The trend for the rather mystifying debacle after the Spring Festival has taken everybody by surprise.
In 2010, China has totally yielded out 630 million tonnes of crude steel. In recent years, Hebei Steel Group regrouped by Tangshan Steel and Handan Steel, realized rapid and steady developments forming a new management mode for further developments.
In the past two years, Hebei Steel Group accumulatively eliminated 5.2 million tonnes of backward steel making capacities and it also gradually regrouped 12 private owned steel mills.
In 2010, China has totally yielded out 630 million tonnes of crude steel. In recent years, Hebei Steel Group regrouped by Tangshan Steel and Handan Steel, realized rapid and steady developments forming a new management mode for further developments.
In the past two years, Hebei Steel Group accumulatively eliminated 5.2 million tonnes of backward steel making capacities and it also gradually regrouped 12 private owned steel mills.
Tags ; Chinese steel mills, Chinese steelmaking, mergers and acquisitions,
HBIS is second steelmaker in the world
Tuesday, 01 Mar 2011
It is reported that HBIS stood top one among national steelmakers with crude steel capacity of 44.78 million tonnes in 2010, second only to ArcelorMittal in the world.
Mr Wang Yifang president of HBIS said the secret of success was M&A. Currently, small scale of steelmakers, scattered industrial distribution and overlapping construction are serious problems for Chinese steel industry under severe control of raw material suppliers like Rio Tinto, BHP Billiton and Vale.
HBIS was a super large steel group, jointly setting up by original Taishan Steel Group and Handan Steel Group since June 30th 2008. Steel capacity of HBIS added from 31.08 million tonnes in 2007 to 44.78 million tonnes in 2010 with total assets increasing from CNY 148 billion to CNY 282.8 billion listing top 500 global enterprises for consecutive two years achieving No 314 in 2010 from No 375 in 2009.
On the basis of internal integration, HBIS took holdings of Shijiazhuagn Steel, restructuring HBXG machinery and other 12 private steel mills via progressive integration of equity. Mr Zhang Changfu vice president of CISA pointed out that integration and restructuring of HBIS left a significant demonstration effect for Chinese steel industry to implement further restructuring program. (sourced from mysteel)
Mr Wang Yifang president of HBIS said the secret of success was M&A. Currently, small scale of steelmakers, scattered industrial distribution and overlapping construction are serious problems for Chinese steel industry under severe control of raw material suppliers like Rio Tinto, BHP Billiton and Vale.
HBIS was a super large steel group, jointly setting up by original Taishan Steel Group and Handan Steel Group since June 30th 2008. Steel capacity of HBIS added from 31.08 million tonnes in 2007 to 44.78 million tonnes in 2010 with total assets increasing from CNY 148 billion to CNY 282.8 billion listing top 500 global enterprises for consecutive two years achieving No 314 in 2010 from No 375 in 2009.
On the basis of internal integration, HBIS took holdings of Shijiazhuagn Steel, restructuring HBXG machinery and other 12 private steel mills via progressive integration of equity. Mr Zhang Changfu vice president of CISA pointed out that integration and restructuring of HBIS left a significant demonstration effect for Chinese steel industry to implement further restructuring program. (sourced from mysteel)
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