Friday, 11 Nov 2011
China's Baoshan Iron & Steel will cut its main product prices for December bookings, a move reflecting the weakness in steel demand in the final month of 2011.
The company plans to slash hot-rolled coil prices by CNY 200 per tonne (USD 32) and cold rolled coil prices by CNY 300 per tonne (USD 48), after it kept its main steel product prices unchanged in November from October.
Baosteel pricing is often seen as a barometer of China's steel industry.
(Sourced from Reuters)
Showing posts with label Chinease steel prices. Show all posts
Showing posts with label Chinease steel prices. Show all posts
Friday, November 11, 2011
Saturday, October 8, 2011
Chinese see softening in iron ore and steel prices on opening
Saturday, 08 Oct 2011
It is reported that the Chinese steel mills that have been holding up the Australian economy are under pressure with steel prices falling and iron ore prices expected to follow.
Mr Yin Jimei an analyst at Iron & Steel Information Website in Tangshan said the steel and iron ore markets are bracing for volatility on a declining trend.
Mr Xu Xiangchun at Mysteel in Shanghai said market anxieties over the global economy have coincided with softening domestic demand including a decline in railway construction due to a series of scandals in the Ministry of Railways.
He said that "Capacity utilisation is on a downward trend because demand and prices are falling and prices for raw materials are high.”
Mr Xu Lejiang Baosteel chairman said last week that steel was the least profitable sector in Chinese manufacturing, with margins less than 3%. He said that ''Steel mills are restructuring and it is possible that we'll see steel mill bankruptcies in the near future. Iron ore prices are likely to fall.''
Dragonomics a Beijing consultancy said real estate data was now a better guide to activity than construction data. It said ''Some questions arise from the apparent disparity between the reported volume of floor space under construction which is up by 30% this year and property sales, which are up only 13%. The sharp rise in new construction is likely a mirage.''
Investors are hoping that a social housing program will offset a slowdown in the private sector real estate market.
(sourced from smh)
It is reported that the Chinese steel mills that have been holding up the Australian economy are under pressure with steel prices falling and iron ore prices expected to follow.
Mr Yin Jimei an analyst at Iron & Steel Information Website in Tangshan said the steel and iron ore markets are bracing for volatility on a declining trend.
Mr Xu Xiangchun at Mysteel in Shanghai said market anxieties over the global economy have coincided with softening domestic demand including a decline in railway construction due to a series of scandals in the Ministry of Railways.
He said that "Capacity utilisation is on a downward trend because demand and prices are falling and prices for raw materials are high.”
Mr Xu Lejiang Baosteel chairman said last week that steel was the least profitable sector in Chinese manufacturing, with margins less than 3%. He said that ''Steel mills are restructuring and it is possible that we'll see steel mill bankruptcies in the near future. Iron ore prices are likely to fall.''
Dragonomics a Beijing consultancy said real estate data was now a better guide to activity than construction data. It said ''Some questions arise from the apparent disparity between the reported volume of floor space under construction which is up by 30% this year and property sales, which are up only 13%. The sharp rise in new construction is likely a mirage.''
Investors are hoping that a social housing program will offset a slowdown in the private sector real estate market.
(sourced from smh)
Thursday, June 2, 2011
Power price hike may push up steel costs in China - Report
Thursday, 02 Jun 2011
It is reported that National Development & Reform Commission may lift the power prices by an average of 1.67 fen per KW/H in 15 provinces since June 2011. Statistics show that the power consumption of China major large and medium sized steelmakers totaled 442.74 KW/H. Experts noted that since the price hike may push up the average steel cost by CNY 7.39 per tonne, it may hit a great blow on the high energy consuming industries like iron and steel industry.
However large sized companies boast a higher amount of self generating power, which makes them less impacted than those medium and small sized companies.
Opinions are divided on the actual impacts of the power price hike. Hebei Iron and Steel Group said that it has offset the increased steel cost along with the price hike with the increasing ratio of self generating power amount. But not all the steelmakers could make it like Xinxin Ductile Iron Pipes Co Limited, for instance, who owns no enough self generating power. A director of Strategy Planning Department of Xinxin noted that only 20% to 30% national steelmakers could generate power themselves to meet the demand. The power price hike presents its effect on the steel cost rise while the insufficient power supply may restrict mills’ productions.
An insider of a steelmaker said that the power price hike may give impetus to the production cost increase and then cut the steelmakers’ revenues in a short run, but it has not shown itself now.
However, it is reported that the rolling process consumes the largest amount of power in the whole steel making procedure, accounting for 26% of the total, which is a vital factor to be considered for the production costs. When it comes to the downstream rolling steel process, the power consumption may become higher.
Mr Luo Bingsheng deputy party secretary of China Iron and Steel Association noted on the 8th session of Shanghai Derivatives Market Forum held recently that the power consumption of iron and steel industry occupied 11.5% and 15% of the total national and the industry power consumption respectively. Therefore, it is unavoidable to take power rationing measures on iron and steel companies due to their overcapacities and high increase of power consumption.
The impacts of price hike on the iron and steel industry may demonstrate itself in the next 2 to 3 months. Mr Luo explained that the power shortage would appear when it entered summer consumption peak from June to October 2011 period. The power rationing measures to control the production could ease the oversupply in the domestic market.
Statistics show that there are about 0.1 billion to 0.2 billion tonnes outdated capacities in iron and steel industry, which refers to furnaces with volumes no more than 300 cubic meters as well as converters and electric furnaces less than 20 cubic meters nominal volumes, with their power consumption per unit higher than the standards stipulated by national policies. Analysts pointed out that the discriminated power price hike and punitive prices would weaken the competitiveness of steelmakers with the outdated equipments in order to accelerate the elimination process. A great blow on steelmakers with high energy consumption and high ratio of low value added products could also benefit the restructuring of iron and steel industry.
It is reported that National Development & Reform Commission may lift the power prices by an average of 1.67 fen per KW/H in 15 provinces since June 2011. Statistics show that the power consumption of China major large and medium sized steelmakers totaled 442.74 KW/H. Experts noted that since the price hike may push up the average steel cost by CNY 7.39 per tonne, it may hit a great blow on the high energy consuming industries like iron and steel industry.
However large sized companies boast a higher amount of self generating power, which makes them less impacted than those medium and small sized companies.
Opinions are divided on the actual impacts of the power price hike. Hebei Iron and Steel Group said that it has offset the increased steel cost along with the price hike with the increasing ratio of self generating power amount. But not all the steelmakers could make it like Xinxin Ductile Iron Pipes Co Limited, for instance, who owns no enough self generating power. A director of Strategy Planning Department of Xinxin noted that only 20% to 30% national steelmakers could generate power themselves to meet the demand. The power price hike presents its effect on the steel cost rise while the insufficient power supply may restrict mills’ productions.
An insider of a steelmaker said that the power price hike may give impetus to the production cost increase and then cut the steelmakers’ revenues in a short run, but it has not shown itself now.
However, it is reported that the rolling process consumes the largest amount of power in the whole steel making procedure, accounting for 26% of the total, which is a vital factor to be considered for the production costs. When it comes to the downstream rolling steel process, the power consumption may become higher.
Mr Luo Bingsheng deputy party secretary of China Iron and Steel Association noted on the 8th session of Shanghai Derivatives Market Forum held recently that the power consumption of iron and steel industry occupied 11.5% and 15% of the total national and the industry power consumption respectively. Therefore, it is unavoidable to take power rationing measures on iron and steel companies due to their overcapacities and high increase of power consumption.
The impacts of price hike on the iron and steel industry may demonstrate itself in the next 2 to 3 months. Mr Luo explained that the power shortage would appear when it entered summer consumption peak from June to October 2011 period. The power rationing measures to control the production could ease the oversupply in the domestic market.
Statistics show that there are about 0.1 billion to 0.2 billion tonnes outdated capacities in iron and steel industry, which refers to furnaces with volumes no more than 300 cubic meters as well as converters and electric furnaces less than 20 cubic meters nominal volumes, with their power consumption per unit higher than the standards stipulated by national policies. Analysts pointed out that the discriminated power price hike and punitive prices would weaken the competitiveness of steelmakers with the outdated equipments in order to accelerate the elimination process. A great blow on steelmakers with high energy consumption and high ratio of low value added products could also benefit the restructuring of iron and steel industry.
(sourced from MySteel)
Monday, March 21, 2011
Iron Ore-Shanghai rebar sags on demand view, China tightening
Mon Mar 21, 2011 2:57am GMT
By Manolo Serapio Jr
By Manolo Serapio Jr
SINGAPORE, March 21 (Reuters) - Shanghai steel rebar futures fell more than 1 percent on Monday after China further tightened the amount of funds banks can lend and on demand uncertainty.
The decline in steel prices in China, the world's biggest producer, could stall a nascent recovery in iron ore prices which rose for a second day on Friday after declining for about a month.
"The rise in steel prices last week was pushed by traders, not end-users. We haven't really seen much cargo from our suppliers," said an iron ore trader in China's eastern Shandong province.
"We need to wait and see whether real demand will pick up or not this week. This is quite essential to determine which direction the iron ore market will go."
Adding to demand concerns, China on Friday again raised banks' required reserves, the latest installment in its monetary tightening cycle that many had thought would be put on hold after Japan's devastating earthquake.
"It's getting more and more difficult to get a loan from the bank. This will definitely impact the market," the trader said.
The most briskly traded rebar contract for October delivery on the Shanghai Futures Exchange fell 1.4 percent to 4,691 yuan a tonne by 0241 GMT, dropping for a third day in a row. The contract hit a one-week low of 4,684 yuan earlier.
Key iron ore indexes, based on spot transactions in China, rose on Friday.
Platts' 62 percent iron ore index IODBZ00-PLT jumped $2 to $168.50 a tonne, including freight, and The Steel Index's 62 percent benchmark .IO62-CNI=SI gained 80 cents to $164.70.
Metal Bulletin's 62 percent gauge .IO62-CNO=MB rose 81 cents to $164.30.
The indexes, which global miners use in setting quarterly contract rates, had slid 15 percent since hitting record highs near $200 in mid-February before regaining some ground last week as some Chinese steel mills replenished dwindling stockpiles.
Top iron ore miner Vale said on Friday it will stick with quarterly pricing for sales to steelmakers, even as rival BHP Billiton sells some of its material on a monthly basis and would like its contracts to move even closer to daily spot prices. (Reuters)
Tags :BHP Billiton, spot prices, 63.5% Indian fines,
The decline in steel prices in China, the world's biggest producer, could stall a nascent recovery in iron ore prices which rose for a second day on Friday after declining for about a month.
"The rise in steel prices last week was pushed by traders, not end-users. We haven't really seen much cargo from our suppliers," said an iron ore trader in China's eastern Shandong province.
"We need to wait and see whether real demand will pick up or not this week. This is quite essential to determine which direction the iron ore market will go."
Adding to demand concerns, China on Friday again raised banks' required reserves, the latest installment in its monetary tightening cycle that many had thought would be put on hold after Japan's devastating earthquake.
"It's getting more and more difficult to get a loan from the bank. This will definitely impact the market," the trader said.
The most briskly traded rebar contract for October delivery on the Shanghai Futures Exchange fell 1.4 percent to 4,691 yuan a tonne by 0241 GMT, dropping for a third day in a row. The contract hit a one-week low of 4,684 yuan earlier.
Key iron ore indexes, based on spot transactions in China, rose on Friday.
Platts' 62 percent iron ore index IODBZ00-PLT jumped $2 to $168.50 a tonne, including freight, and The Steel Index's 62 percent benchmark .IO62-CNI=SI gained 80 cents to $164.70.
Metal Bulletin's 62 percent gauge .IO62-CNO=MB rose 81 cents to $164.30.
The indexes, which global miners use in setting quarterly contract rates, had slid 15 percent since hitting record highs near $200 in mid-February before regaining some ground last week as some Chinese steel mills replenished dwindling stockpiles.
Top iron ore miner Vale said on Friday it will stick with quarterly pricing for sales to steelmakers, even as rival BHP Billiton sells some of its material on a monthly basis and would like its contracts to move even closer to daily spot prices. (Reuters)
Tags :BHP Billiton, spot prices, 63.5% Indian fines,
Monday, March 14, 2011
Chinese steel price slide has no more room - MOFCOM
Monday, 14 Mar 2011
According to the report revealed by Ministry of Commerce of the People Republic of China, China steel price witnessed straight two weeks’ fallout down 1.6% compared to that of the previous week.
MOFCOM said that three main factors are as follows affecting recent steel price slide
1. Supply is on the rise
Steelmakers progressively resume production and the output rises clearly. As CISA ten day report showed that China average daily crude steel output hit 1.8 million tonnes in the first 20 days of February up by 5.7% from that of 1.7 million tonnes in January.
2. The restocking picks up greatly
The data shows that China construction steel inventory increased by 53.9% from the beginning of February up by 13.3%YoY.
3. The price of raw materials cools down
Iron ore spot market price slide spur steel making costs drop. The data displays that domestic iron ore prices declined by 4.7% in last week from the middle ten days of February.
MOFCOM also noted that slim room is expected for further decline, but the downward margin will be limited, considering that many projects are to resume construction as busy spring sets in and the demand from home appliances and car industries sees further increase.(sourced:mysteel)
MOFCOM said that three main factors are as follows affecting recent steel price slide
1. Supply is on the rise
Steelmakers progressively resume production and the output rises clearly. As CISA ten day report showed that China average daily crude steel output hit 1.8 million tonnes in the first 20 days of February up by 5.7% from that of 1.7 million tonnes in January.
2. The restocking picks up greatly
The data shows that China construction steel inventory increased by 53.9% from the beginning of February up by 13.3%YoY.
3. The price of raw materials cools down
Iron ore spot market price slide spur steel making costs drop. The data displays that domestic iron ore prices declined by 4.7% in last week from the middle ten days of February.
MOFCOM also noted that slim room is expected for further decline, but the downward margin will be limited, considering that many projects are to resume construction as busy spring sets in and the demand from home appliances and car industries sees further increase.(sourced:mysteel)
Saturday, February 19, 2011
CISA sees Chinese steel prices seen rising in near term
Saturday, 19 Feb 2011
Reuters quoted the China Iron & Steel Association as saying that steel prices in the Chinese domestic market will continue rising in the near term due to recovering demand and rising raw materials costs.
CISA said that it expects a gradual pick up in demand at home and abroad with costs of raw materials such as iron ore, coke and scrap likely to keep surging, pushing steel prices upwards.
It said "This year is the opener of the 12th five year plan, so steel demand will remain strong as economic growth is expected to remain healthy."
It added that major steel consuming sectors such as construction, machinery, transportation, home appliances and shipbuilding would continue to grow, lifting steel demand, noting that infrastructure projects would also contribute to rising demand.
The Ministry of Industry and Information Technology forecast earlier this week that China crude steel output would hit a record 660 million tonnes this year with downstream demand providing a boost.
However, CISA also warned that non steel mill steel product inventories had risen sharply and domestic steel production is also on the rise.
CISA data showed that China produced 1.7033 million tonnes of crude steel on a daily basis in January up by 2.5% from December.
Non steel mill inventories of five major steel products in 26 big cities rose 11.2% to 14.72 million tonnes in January from the previous month especially for rebar and wire rod used in the construction sector.
(Sourced from Reuters)
Reuters quoted the China Iron & Steel Association as saying that steel prices in the Chinese domestic market will continue rising in the near term due to recovering demand and rising raw materials costs.
CISA said that it expects a gradual pick up in demand at home and abroad with costs of raw materials such as iron ore, coke and scrap likely to keep surging, pushing steel prices upwards.
It said "This year is the opener of the 12th five year plan, so steel demand will remain strong as economic growth is expected to remain healthy."
It added that major steel consuming sectors such as construction, machinery, transportation, home appliances and shipbuilding would continue to grow, lifting steel demand, noting that infrastructure projects would also contribute to rising demand.
The Ministry of Industry and Information Technology forecast earlier this week that China crude steel output would hit a record 660 million tonnes this year with downstream demand providing a boost.
However, CISA also warned that non steel mill steel product inventories had risen sharply and domestic steel production is also on the rise.
CISA data showed that China produced 1.7033 million tonnes of crude steel on a daily basis in January up by 2.5% from December.
Non steel mill inventories of five major steel products in 26 big cities rose 11.2% to 14.72 million tonnes in January from the previous month especially for rebar and wire rod used in the construction sector.
(Sourced from Reuters)
Subscribe to:
Posts (Atom)
Posts
