Friday, 16 Dec 2011
Mr V Kumarswamy CFO of JK Paper spoke to CNBC-TV18 about his outlook for the business and the way ahead for his company. He says that after the terrible past quarter, this quarter seems to be much better. Mr Kumaraswamy said that that JK Paper will go ahead and buy coal from the European markets if need be since the plants cannot be kept shut.
Q - Your profitability declined by about 78% last quarter and margins fell from 28% to 17%. Has Q3 been better for you all?
A - Well, the last quarter’s disturbance was created largely by coal supply disturbances which you are reading in the paper almost daily now, and also some kind of dumping of coated paper from China consequent to US and EU putting some very high dumping duties there. A lot of quantities were thus diverted here.
The coated paper scenario has been largely taken care of by the currency depreciation in India, almost going from INR 45 to INR 53 per dollar levels that has made imports of coated paper that much costlier. Coal supplies are improving but no where near normal. So that’s how the current quarter is panning out to be.
Q - This gap that you have between what was your supply of about 1.5 tonne of coal required for every tonne of paper and what you get now, are you looking at buying in the open market? How are you looking at resolving this issue?
A - We have to buy it from the European markets, there is no other alternative. I can't keep the plant shut for this reason. After all, there is a positive contribution and EBITDA margins even at the bought-out coal. We always buy coal from European markets because there is no way that we will not buy from the open market.
(sourced:CNBC-TV18)
Showing posts with label European market. Show all posts
Showing posts with label European market. Show all posts
Friday, December 16, 2011
Sunday, December 11, 2011
Euro Coal-Prices dip despite oil steadying
Sunday, Dec11, 2011
* Danube water levels rise
* Japanese start term contract talks
LONDON (Reuters) - Physical prompt coal prices dipped slightly on Friday after a week of limited activity which left coal tracking oil and currencies while fundamentals took a back seat.
Oil prices steadied at around $108 on Friday after the euro zone agreed closer fiscal union to save its currency.
Coal trading activity has already fallen off considerably ahead of the Christmas and New Year holidays - both end-users and suppliers have squared their books and have little appetite for new business, traders and utilities said.
Aside from some Indian tenders for supply through 2012, there has been little evidence of consumer buying interest this week in either Europe or Asia.
Water levels on Germany's Danube river have recovered to levels which allow fully-loaded barges to sail but unless there is an unexpectedly harsh winter, utilities said they are unlikely to buy more spot coal in December and January .
China, the key spot buyer this year, is still enquiring for prompt cargoes but new deals are not being done.
Stockpiles remain high at Chinese ports and there is a lot of wrangling between suppliers and importers over who pays the hefty demurrage costs for vessels forced to wait before discharging cargo, suppliers said.
Chinese thermal coal inventories are currently around 16 days and utilities are not in urgent need of supply .
Australian coal prices FOB Newcastle have remained flat at around $111 a tonne and are likely to remain at that level or drift slightly lower over the holiday period.
Negotiations between Japanese utilities and Australian suppliers for term contracts have already begun and suppliers are in no rush to settle because spot prices are $20 below the current 2011 contract price which was a record $129.85.
"A lot of people are already on holiday and that's reflected in the lack of bids and offers in Europe. The market's looking rather weak in the Atlantic and Pacific, it's been supported by oil and little else recently," one major European trader said.
"Chinese buyers are still enquiring and there is still some buying taking place," another trader said.
PRICES
A January loading South African cargo was bid at $101.50 and offered at $102.75, down 50 cents on the offer. A February South African cargo was bid at $100.00 and offered at $102.75, down $1.00 on the bid. A January delivery DES ARA cargo was offered at $110.50, down $1.00. A February DES ARA cargo was bid at $111.25 and offered at $111.75, down 25 cents.
(sourced Reuters)
* Danube water levels rise
* Japanese start term contract talks
LONDON (Reuters) - Physical prompt coal prices dipped slightly on Friday after a week of limited activity which left coal tracking oil and currencies while fundamentals took a back seat.
Oil prices steadied at around $108 on Friday after the euro zone agreed closer fiscal union to save its currency.
Coal trading activity has already fallen off considerably ahead of the Christmas and New Year holidays - both end-users and suppliers have squared their books and have little appetite for new business, traders and utilities said.
Aside from some Indian tenders for supply through 2012, there has been little evidence of consumer buying interest this week in either Europe or Asia.
Water levels on Germany's Danube river have recovered to levels which allow fully-loaded barges to sail but unless there is an unexpectedly harsh winter, utilities said they are unlikely to buy more spot coal in December and January .
China, the key spot buyer this year, is still enquiring for prompt cargoes but new deals are not being done.
Stockpiles remain high at Chinese ports and there is a lot of wrangling between suppliers and importers over who pays the hefty demurrage costs for vessels forced to wait before discharging cargo, suppliers said.
Chinese thermal coal inventories are currently around 16 days and utilities are not in urgent need of supply .
Australian coal prices FOB Newcastle have remained flat at around $111 a tonne and are likely to remain at that level or drift slightly lower over the holiday period.
Negotiations between Japanese utilities and Australian suppliers for term contracts have already begun and suppliers are in no rush to settle because spot prices are $20 below the current 2011 contract price which was a record $129.85.
"A lot of people are already on holiday and that's reflected in the lack of bids and offers in Europe. The market's looking rather weak in the Atlantic and Pacific, it's been supported by oil and little else recently," one major European trader said.
"Chinese buyers are still enquiring and there is still some buying taking place," another trader said.
PRICES
A January loading South African cargo was bid at $101.50 and offered at $102.75, down 50 cents on the offer. A February South African cargo was bid at $100.00 and offered at $102.75, down $1.00 on the bid. A January delivery DES ARA cargo was offered at $110.50, down $1.00. A February DES ARA cargo was bid at $111.25 and offered at $111.75, down 25 cents.
(sourced Reuters)
Friday, October 14, 2011
ArcelorMittal confirms closures at Liege site
Fri Oct 14, 2011
BRUSSELS Oct 14 (Reuters) - ArcelorMittal the world's largest steelmaker on Friday confirmed that it will permanently close its liquid phase steel production at its site in Liege, Belgium.
Union leaders said late on Wednesday that the group's local bosses had announced that the two blast furnaces, one idled since 2008, the other since August, and a foundry would be closed down.
ArcelorMittal said it faced a structural over-capacity in Northern Europe, given a difficult European market.
"The liquid phase in Liege is still not competitive enough under foreseeable market conditions," Joao Felix da Silva, CEO of ArcelorMittal Liege said in a statement on Friday.
Arcelor said the decision would not impact its capacity or market share in Europe.
(sourced Reuters)
BRUSSELS Oct 14 (Reuters) - ArcelorMittal the world's largest steelmaker on Friday confirmed that it will permanently close its liquid phase steel production at its site in Liege, Belgium.
Union leaders said late on Wednesday that the group's local bosses had announced that the two blast furnaces, one idled since 2008, the other since August, and a foundry would be closed down.
ArcelorMittal said it faced a structural over-capacity in Northern Europe, given a difficult European market.
"The liquid phase in Liege is still not competitive enough under foreseeable market conditions," Joao Felix da Silva, CEO of ArcelorMittal Liege said in a statement on Friday.
Arcelor said the decision would not impact its capacity or market share in Europe.
(sourced Reuters)
Friday, September 16, 2011
European benchmark coal for next year gains most in two weeks
Friday, 16 Sep 2011
Bloomberg reported that thermal coal for delivery to Amsterdam, Rotterdam or Antwerp with settlement next year rose 85 cents or 0.7% to USD 126.75 per ton at 10:45 AM in London.
That’s the biggest gain since August 31.
(sourced from Bloomberg)
Bloomberg reported that thermal coal for delivery to Amsterdam, Rotterdam or Antwerp with settlement next year rose 85 cents or 0.7% to USD 126.75 per ton at 10:45 AM in London.
That’s the biggest gain since August 31.
(sourced from Bloomberg)
Thursday, September 15, 2011
Euro coal prices drop another USD 1 per tonne in active trade
Thursday, 15 Sep 2011
Reuters reported that prompt physical coal prices fell by another USD 1.00 a tonne on Wednesday having dropped steadily for the past few days on weak demand in Europe and Asia.
European DES ARA prices have held steady in a narrow range for most of this year, between around USD 125 to USD 130 dollars, because frequent buying by one utility has been enough to prop up prices.
However, the number of October to December DES cargoes offered has been rising and bids from a handful of buyers have been dropping, pushing DES prices out of the range.
A November DES ARA cargo traded at USD 121.50 on Wednesday down around USD 1.00 from the previous day. December cargoes were offered at a similar level.
One European trader said "There have been more sellers today, it's been fairly active and it's looking weaker every day."
South African FOB prices have also been dropping steadily for the past several days. There has been limited spot buying by Chinese and Indian traders but not enough to support prices.
(sourced from Reuters)
Reuters reported that prompt physical coal prices fell by another USD 1.00 a tonne on Wednesday having dropped steadily for the past few days on weak demand in Europe and Asia.
European DES ARA prices have held steady in a narrow range for most of this year, between around USD 125 to USD 130 dollars, because frequent buying by one utility has been enough to prop up prices.
However, the number of October to December DES cargoes offered has been rising and bids from a handful of buyers have been dropping, pushing DES prices out of the range.
A November DES ARA cargo traded at USD 121.50 on Wednesday down around USD 1.00 from the previous day. December cargoes were offered at a similar level.
One European trader said "There have been more sellers today, it's been fairly active and it's looking weaker every day."
South African FOB prices have also been dropping steadily for the past several days. There has been limited spot buying by Chinese and Indian traders but not enough to support prices.
(sourced from Reuters)
Thursday, September 1, 2011
European steam coal prices climb to USD 129 a tonne
Thursday, 01 Sep 2011 |By Bloomberg
Benchmark European coal prices advanced for a third consecutive session. According to broker prices compiled by Bloomberg, thermal coal for delivery to Amsterdam, Rotterdam or Antwerp with settlement next year rose 50 cents, or 0.4% to USD 129.50 a metric tonne as of 11:14 AM in London on August 31st 2011. That’s the highest intraday price since August 1.
Benchmark European coal prices advanced for a third consecutive session. According to broker prices compiled by Bloomberg, thermal coal for delivery to Amsterdam, Rotterdam or Antwerp with settlement next year rose 50 cents, or 0.4% to USD 129.50 a metric tonne as of 11:14 AM in London on August 31st 2011. That’s the highest intraday price since August 1.
Tuesday, August 23, 2011
European shares extend gains; miners jump
Tue Aug 23, 2011
LONDON (Reuters) - European equities gained further on Tuesday, with miners rising on the back of stronger metal prices following China's factory sector data, while investors bet that the Federal Reserve might signal fresh measures to support the economy later this week.
The STOXX Europe 600 basic resources index, up 2.6 percent, was the best performer. At 0711 GMT, the FTSEurofirst 300 index of top European shares was up 1.5 percent at 930.85 points after rising 0.8 percent on Monday.
"Any data that just hints that the world is not ending is going to be well received by the market. We had better-than-anticipated Chinese factory data overnight and some of the corporate results this morning were also good," said Ian Richards, European equity strategist at RBS.
"You have also got a potential catalyst coming through on Friday and the Jackson Hole meeting is going to be in focus for the markets all this week."
Investors waited for the Fed Chairman Ben Bernanke's key speech at an annual central bank conference in Jackson Hole to see if he would provide hints for further measures to revive the struggling economy.
(sourced Thomson Reuters)
LONDON (Reuters) - European equities gained further on Tuesday, with miners rising on the back of stronger metal prices following China's factory sector data, while investors bet that the Federal Reserve might signal fresh measures to support the economy later this week.
The STOXX Europe 600 basic resources index, up 2.6 percent, was the best performer. At 0711 GMT, the FTSEurofirst 300 index of top European shares was up 1.5 percent at 930.85 points after rising 0.8 percent on Monday.
"Any data that just hints that the world is not ending is going to be well received by the market. We had better-than-anticipated Chinese factory data overnight and some of the corporate results this morning were also good," said Ian Richards, European equity strategist at RBS.
"You have also got a potential catalyst coming through on Friday and the Jackson Hole meeting is going to be in focus for the markets all this week."
Investors waited for the Fed Chairman Ben Bernanke's key speech at an annual central bank conference in Jackson Hole to see if he would provide hints for further measures to revive the struggling economy.
(sourced Thomson Reuters)
Monday, August 22, 2011
Utility companies write down £600m of coal assets
Major energy companies have written down the value of coal and oil power station assets by £600m, with RWE npower poised to cut around 440 jobs linked to closing plants.
By Rowena Mason, Energy Correspondent
Mon,22Aug,2011
The falling profitability of coal stations in the medium-term is linked to costly restrictions from Europe on carbon dioxide emissions and lower wholesale electricity prices last year.
EDF Energy has booked a £340m write-down on its Cottam and West Burton coal-fired power stations, which last changed hands for £398m and £366m respectively.
The company said they both remain "an integral part of the generating portfolio" but "expectation of future revenues" is lower.
Meanwhile, RWE npower has recorded an "exceptional impairment loss against the value of two coal and two oil fired power stations" amounting to £249m.
It said: "This has been caused by a sharp decline in the margins forecast to be earned on coal and oil generation over the next three to four years reflecting fundamental changes in the UK generation market over this period."
E.ON has also recognised a £40m impairment related to its decision not to develop its Kingsnorth coal power station any further. It decided to put off turning the plant into a "clean" coal generator because of insufficient electricity demand.
Coal is facing its demise in Britain as new stations have to meet onerous environmental standards and margins remain low.
Furthermore, nine of the UK's coal stations must close before 2015 because of European regulations on pollution.
All coal power stations were given the choice between spending millions on becoming less pollutive or running 20,000 more hours in their current form before closing.
This has caused RWE npower to take a £22m hit through expected severance and termination costs for 441 lost jobs related to the closure of coal plants over the next four years.
However, for some of this year, rising gas prices means coal has been the preferred means of generation. In July, Liberum Capital said: "We ascribe little value to coal power stations due to their short life but this 'oxygen blast' of profitability should help short-term earnings."
(By Telegraph)
By Rowena Mason, Energy Correspondent
Mon,22Aug,2011
The falling profitability of coal stations in the medium-term is linked to costly restrictions from Europe on carbon dioxide emissions and lower wholesale electricity prices last year.
EDF Energy has booked a £340m write-down on its Cottam and West Burton coal-fired power stations, which last changed hands for £398m and £366m respectively.
The company said they both remain "an integral part of the generating portfolio" but "expectation of future revenues" is lower.
Meanwhile, RWE npower has recorded an "exceptional impairment loss against the value of two coal and two oil fired power stations" amounting to £249m.
It said: "This has been caused by a sharp decline in the margins forecast to be earned on coal and oil generation over the next three to four years reflecting fundamental changes in the UK generation market over this period."
E.ON has also recognised a £40m impairment related to its decision not to develop its Kingsnorth coal power station any further. It decided to put off turning the plant into a "clean" coal generator because of insufficient electricity demand.
Coal is facing its demise in Britain as new stations have to meet onerous environmental standards and margins remain low.
Furthermore, nine of the UK's coal stations must close before 2015 because of European regulations on pollution.
All coal power stations were given the choice between spending millions on becoming less pollutive or running 20,000 more hours in their current form before closing.
This has caused RWE npower to take a £22m hit through expected severance and termination costs for 441 lost jobs related to the closure of coal plants over the next four years.
However, for some of this year, rising gas prices means coal has been the preferred means of generation. In July, Liberum Capital said: "We ascribe little value to coal power stations due to their short life but this 'oxygen blast' of profitability should help short-term earnings."
(By Telegraph)
Sunday, August 21, 2011
Coal inventories at European ports up
Sunday, 21 Aug 2011
Coal inventories at leading ports in Europe climbed to this year’s highest level as transportation costs rose.
According to Elias Chibani, a trader based in Amsterdam with the energy-trading unit of Vattenfall AB, the largest Nordic utility, stockpiles at Europees Massagoed-Overslagbedrijf BV or Emo, the largest coal terminal in Rotterdam, come to 3.14 million tonnes. They total 1.75 million tonnes at the OBA terminal at Amsterdam.
Chibani said that “That is the highest stocking level since the beginning of this year.” According to a report by Barclays Capital, end users prefer to keep coal at ports because of elevated transportation expenses caused by low water levels in the Rhine River.
Chibani said that “There are more sellers than buyers now, after the restocking by utilities in the past few weeks.”
(Sourced Bloomberg)
Coal inventories at leading ports in Europe climbed to this year’s highest level as transportation costs rose.
According to Elias Chibani, a trader based in Amsterdam with the energy-trading unit of Vattenfall AB, the largest Nordic utility, stockpiles at Europees Massagoed-Overslagbedrijf BV or Emo, the largest coal terminal in Rotterdam, come to 3.14 million tonnes. They total 1.75 million tonnes at the OBA terminal at Amsterdam.
Chibani said that “That is the highest stocking level since the beginning of this year.” According to a report by Barclays Capital, end users prefer to keep coal at ports because of elevated transportation expenses caused by low water levels in the Rhine River.
Chibani said that “There are more sellers than buyers now, after the restocking by utilities in the past few weeks.”
(Sourced Bloomberg)
Saturday, August 20, 2011
UK coal purchase from US in Q1 increases
Saturday, 20 Aug 2011
Bloomberg reported that UK purchases of thermal coal from the US jumped in the first quarter as demand for the dirtier- burning fuel advanced and exporters took advantage of Britain’s ability to scrub sulfur dioxide from emissions.
According to Mr Nigel Yaxley, head of the Association of UK Coal Importers a lobby group whose members include the British units of EDF SA and EON AG, coal imports from the US advanced by more than four times partly because the fuel was discounted compared with better quality shipments from traditional markets such as Russia and Colombia.
Mr Yaxley said that “The import increase is price driven, because UK power stations are buying high-sulfur coal at discounted prices.”
According to analysts at Bloomberg New Energy Finance in London, lower European Union carbon-permit prices and a shift away from nuclear power in Germany will probably boost EU demand for coal.
(Sourced from Bloomberg)
Bloomberg reported that UK purchases of thermal coal from the US jumped in the first quarter as demand for the dirtier- burning fuel advanced and exporters took advantage of Britain’s ability to scrub sulfur dioxide from emissions.
According to Mr Nigel Yaxley, head of the Association of UK Coal Importers a lobby group whose members include the British units of EDF SA and EON AG, coal imports from the US advanced by more than four times partly because the fuel was discounted compared with better quality shipments from traditional markets such as Russia and Colombia.
Mr Yaxley said that “The import increase is price driven, because UK power stations are buying high-sulfur coal at discounted prices.”
According to analysts at Bloomberg New Energy Finance in London, lower European Union carbon-permit prices and a shift away from nuclear power in Germany will probably boost EU demand for coal.
(Sourced from Bloomberg)
Friday, August 19, 2011
European coal prices decline to USD 126 a tonne
Friday, 19 Aug 2011
Bloomberg reported that coal for delivery to Amsterdam, Rotterdam or Antwerp with settlement next year dropped 35 cents or 0.3% to USD 126.75 a metric tonne by 8:52 AM in London.
Mr Mark Pervan an analyst with Australia & New Zealand Banking Group Ltd said that prices showed a mixed performance. He added that “Activity in the European market increased significantly, despite the weak economic backdrop.”
The data are drawn from information supplied by ICAP Plc, GFI Group Inc, Spectron Group Ltd, Credit Suisse Group AG, IHS McCloskey, Bloomberg, Tradition Financial Services and Tullett Prebon Plc.
(sourced from Bloomberg)
Bloomberg reported that coal for delivery to Amsterdam, Rotterdam or Antwerp with settlement next year dropped 35 cents or 0.3% to USD 126.75 a metric tonne by 8:52 AM in London.
Mr Mark Pervan an analyst with Australia & New Zealand Banking Group Ltd said that prices showed a mixed performance. He added that “Activity in the European market increased significantly, despite the weak economic backdrop.”
The data are drawn from information supplied by ICAP Plc, GFI Group Inc, Spectron Group Ltd, Credit Suisse Group AG, IHS McCloskey, Bloomberg, Tradition Financial Services and Tullett Prebon Plc.
(sourced from Bloomberg)
Saturday, August 13, 2011
Tata Steel net triples on non-core income
13 Aug, 2011, ET Bureau
KOLKATA: Tata Steel on Friday said its consolidated first quarter net profit grew three-fold aided mainly by one-time gains from sale of stakes in subsidiaries and in an Australian mining company.
The Jamshedpur-based steelmaker, which is ranked seventh largest in the world by capacity, posted a net profit of 5,346.6 crore, compared to 1,825.3 crore last year, according to a filing with the Bombay Stock Exchange.
Tata Steel's earnings announcement, which came during market hours, did nothing for the company shares, with the stock falling to its 52-week low on a day when the trading sentiment was weak. Tata Steel's stock fell 1.7% to 476.40 as investors worried about pressure on margins because of rising price of inputs and slow demand in key European markets.
On a standalone basis, the Indian unit of Tata Steel posted a net profit of 2,219.43 crore during the April-June quarter registering a 40.5% growth, compared with 1,579.4 crore in the same period last year. Net sales in the June quarter for the entire company rose 22% to 32,839.9 crore, which was in line with analyst expectations.
"The performance is stable and not unexpected, but going forward, there might be pressure on margins both in India and abroad due to high costs and unutilised capacity," said Ravindra Deshpande, an analyst with Elara Capital.
"For Tata Steel Europe, rising prices of iron ore and coking coal will affect margins, while for the Indian unit, coal will be a drawback."
Although Tata Steel owns iron ore mines, it buys half of its coking coal requirements. Tata Steel Europe, which accounts for 65% of the consolidated business buys iron ore and coking coal from the open market.
The one-time gains included sale of Tata Steel's investment in Riversdale Mining and in Tata Refractories, while a settlement of claims at Teesside Cast Products unit in the UK also helped the company post higher profits.
In its filing with BSE, Tata Steel said that during the April-June quarter it realised 4,942 crore by selling its 26.27% stake in the Australian mining firm Riversdale to Rio Tinto, a global mining giant.
Of this, it included 2,879.29 crore as one-time profit in the first quarter, the statement added. The company also made a profit of 511 crore by selling a 51% stake in Tata Refractories to Krosaki Harima Corporation, an associate of Japan's Nippon Steel, in May this year.
KOLKATA: Tata Steel on Friday said its consolidated first quarter net profit grew three-fold aided mainly by one-time gains from sale of stakes in subsidiaries and in an Australian mining company.
The Jamshedpur-based steelmaker, which is ranked seventh largest in the world by capacity, posted a net profit of 5,346.6 crore, compared to 1,825.3 crore last year, according to a filing with the Bombay Stock Exchange.
Tata Steel's earnings announcement, which came during market hours, did nothing for the company shares, with the stock falling to its 52-week low on a day when the trading sentiment was weak. Tata Steel's stock fell 1.7% to 476.40 as investors worried about pressure on margins because of rising price of inputs and slow demand in key European markets.
On a standalone basis, the Indian unit of Tata Steel posted a net profit of 2,219.43 crore during the April-June quarter registering a 40.5% growth, compared with 1,579.4 crore in the same period last year. Net sales in the June quarter for the entire company rose 22% to 32,839.9 crore, which was in line with analyst expectations.
"The performance is stable and not unexpected, but going forward, there might be pressure on margins both in India and abroad due to high costs and unutilised capacity," said Ravindra Deshpande, an analyst with Elara Capital.
"For Tata Steel Europe, rising prices of iron ore and coking coal will affect margins, while for the Indian unit, coal will be a drawback."
Although Tata Steel owns iron ore mines, it buys half of its coking coal requirements. Tata Steel Europe, which accounts for 65% of the consolidated business buys iron ore and coking coal from the open market.
The one-time gains included sale of Tata Steel's investment in Riversdale Mining and in Tata Refractories, while a settlement of claims at Teesside Cast Products unit in the UK also helped the company post higher profits.
In its filing with BSE, Tata Steel said that during the April-June quarter it realised 4,942 crore by selling its 26.27% stake in the Australian mining firm Riversdale to Rio Tinto, a global mining giant.
Of this, it included 2,879.29 crore as one-time profit in the first quarter, the statement added. The company also made a profit of 511 crore by selling a 51% stake in Tata Refractories to Krosaki Harima Corporation, an associate of Japan's Nippon Steel, in May this year.
Tuesday, August 9, 2011
World stocks hit fresh 11-month low; down 20 pct since May
Tue Aug 9, 2011
LONDON (Reuters) - World stocks hit a 11-month low on Tuesday, entering bear market territory as it fell more than 20 percent since hitting a three-year high in May.
Investors grew concerned about the health of the U.S. economy, the euro zone debt crisis and higher inflation in China.
The MSCI all-country equity index fell nearly 2 percent on the day to its lowest since September 2010. The index has fallen for 10 consecutive days.
The MSCI emerging equity index fell 3.4 percent towards July 2010 lows hit in Asian trade.
(sourced Reuters)
Monday, August 8, 2011
European shares fall after US downgrade
Mon Aug 8, 2011 7:17am GMT
LONDON (Reuters) - European shares slipped on Monday continuing their two-week slide after Standard & Poor cut the U.S. prized AAA credit rating by one notch, with miners the worst performers.
But losses could be limited after the Group of Seven leaders said they were "ready to take action to ensure stability and liquidity in financial markets" and the European Central Bank is to extend its bond buying support.
Commodity stocks whose performance is dependent on a strong economic outlook were among the worst performers, with the STOXX Europe 600 Basic Resources index down 1.7 percent.
"The downgrade to the U.S. is not great. These markets are going to remain unsettled for a while, we had recommended investors to raise cash in anticipation of this volatility," Mike Lenhoff, chief strategist at Brewin Dolphin Securities, said.
"If the ECB is going to provide some support to the bond markets that could create some sort of relief, buying opportunities could emerge in the sold off cyclical areas, but we are looking for more stability first."
By 0710 GMT, the pan-European FTSEurofirst 300 index of top shares was down 0.3 percent at 972.55 points, having hit their lowest level since late May 2010.
(sourced Thomson Reuters)
Thursday, July 21, 2011
EUROMETAL: Germany leads the European economy
European association of steel and other metals distributors and service centers (EUROMETAL) has recently released a report on the performance of economy and global steel markets.
The data regarding the change in GDP from 2005 to 2011 in the euro area highlights significant differences among countries. The performance of Slovakia stands out above all, with a +30.1%, followed by Luxembourg (+17.2%), Malta (+14.7%) and Cyprus (+14.4%), while among the weakest countries there are Ireland (-1.2%), Italy (-1%), Greece (unchanged) and Portugal (+0.4%). Germany performed well, with a +8.6%, while the GDP of France and Spain was up 5.6% and 5.3% respectively.
In 2005-2011, the European industrial production showed a very heterogeneous picture as well. Slovakia was in the lead again (+43.3%), followed by Belgium (+14.2%), Austria (+9.4%) and Ireland (+9.3%); in the bottom of the list there are Spain (-16.6%), Greece (-16.1%), Italy (-11.4%), Luxembourg (-10.1%) and France (-7.8%). Germany did well again, with a 4.2% increase.
Focusing on 2011 only, global GDP is estimated to grow by 4.3%, but the world is growing with different intensity depending on the different macro-regions: advanced economies, held back by low consumer confidence, fiscal tightening and government debt, will grow only by 2.2% this year, while emerging countries will grow by 6.5%. In detail, the healthiest countries are China (+9%), followed by India (+8.6%), Argentina, Chile, Indonesia and Turkey (all above 6%). A second group consists of the countries of Central-Eastern Europe and North America: Germany (+3.4%), Poland (+4.2%), Russia (+4.2%), Slovakia (+3.5%), United States (+2.5%) and Canada (+2.9%). Western Europe and Japan grew within limits: -0.6% for the latter, +0.9% for Italy, +0.7% for Spain, +1.5% for the United Kingdom, +2.1% for France. The figure for the 17 European countries was up 1.9%.
Speaking of steel, in 2011 EUROMETAL expects an apparent steel consumption of 157 million mt in the EU-27, up 8% compared with last-year 145 million mt, but still behind the pre-crisis levels (the peak was reached in 2007, with 184 million mt). As for the European production of crude steel, in the first 5 months of this year it was up 4% over the same period of 2010. The figure has to be compared with the 6% increase of the CIS area and the 23% of Turkey, direct competitor of Europe in the Mediterranean.
In the report by EUROMETAL, it emerges once again that the long steel segment is struggling more than any other to come out definitively from the crisis. In the first 5 months of 2011 the output of the European construction sector has declined 1% year on year, while the sales of rebar, beams and profiles distributors were up 7%, though this progress is largely attributable to restocking activities. The situation is far better in the flat steel market: in January-May 2011, service centers' sales increased by 14% year on year, in line with the increase in orders in the mechanical, automotive, appliance, construction and equipment industries.
Tuesday, February 15, 2011
Miners push European shares to 29-mth closing high
17:50, Monday 14 February 2011
* FTSEurofirst 300 (E3X.FGI - news) up 0.3 pct
* Commodity (COMIN.NX - news) stocks gain on China import data
* Banks (SBK.NX - news) lower ahead of sector results
LONDON, Feb 14 (Reuters) - European shares hit a 29-month closing high on Monday, with miners up after Chinese trade data highlighted strong demand for raw material and as talk of easing inflation in the country capped fears of further tightening.
The pan-European FTSEurofirst 300 index of top shares closed 0.3 percent higher at 1,177.86 points, its highest close since early September 2008.
The index, up 3 percent this month, has rebounded almost 83 percent since hitting a record low in March 2009.
Miners in the STOXX Europe 600 basic resources index rose 1.6 percent as copper prices neared record highs after data showed a fall in China's trade surplus to a nine-month low, following surprisingly strong imports, notably of copper.
"The import data reaffirms the growth story in China and helps to give confidence in mining companies that interest rate rises are not going to suppress metal demand in the medium term," said Joshua Raymond, market strategist at City Index.
Traders also said there was talk China's consumer price index (CPI (Berlin: CEJ.BE - news) ) may have risen 4.9 percent in the year to January, well below the forecast of 5.3 percent, adding that might be because of weighting changes in the CPI.
"Inflation has been the major worry and there has been a fear of monetary overkill, but until the (inflation) data is released (on Tuesday) we could see a bit of volatility," said Heino Ruland, strategist at Ruland Research in Frankfurt.
Share (LSE: SHRE.L - news) price gains were kept in check by falls in heavyweight banking stocks ahead of sector earnings results due this week. Societe Generale (Paris: FR0000130809 - news) and BNP Paribas (BNPQF.PK - news) , which report this week, both shed around 1.2 percent while Lloyds Banking Group fell 1.7 percent.
Bucking the trend, Credit Suisse (CSMA - news) gained 1.9 percent after the Swiss bank said it will issue 6 billion Swiss francs ($6.2 billion) of contingent convertible capital bonds, or CoCos, to satisfy stricter capital rules. [ID:nLDE71D039]
ARM Holdings (LSE: ARM.L - news) rose 6.6 percent as traders cited bullish notes from Goldman Sachs (NYSE: GS - news) and Morgan Stanley (DWDF.EX - news) on its outlook. Nearly all the world's mobile phones and tablets use the company's low-power technology.
France's Thales (Hamburg: CSF.HM - news) rebounded from earlier losses to rise 4.6 percent, as investors brushed aside a profit warning from the defence company. [ID:nLDE71D0BM]
Cementing expectations of a pick-up in merger and acquisition activity, British energy services provider John Wood Group surged 13.9 percent after U.S. conglomerate General Electric bought a unit of the company for $2.8 billion.
(Reporting by Joanne Frearson;Editing by David Hulmes,sourced:resuters)
Tags:FTSEurofirst, Commodities, European market, shares, Chinease trade data, strong demand, raw materials, STOXX Europe, traders, Credit Suisse, ARM Holdings, Goldman Sachs Group Inc.,Thales, John Wood group, General Electric.
* FTSEurofirst 300 (E3X.FGI - news) up 0.3 pct
* Commodity (COMIN.NX - news) stocks gain on China import data
* Banks (SBK.NX - news) lower ahead of sector results
LONDON, Feb 14 (Reuters) - European shares hit a 29-month closing high on Monday, with miners up after Chinese trade data highlighted strong demand for raw material and as talk of easing inflation in the country capped fears of further tightening.
The pan-European FTSEurofirst 300 index of top shares closed 0.3 percent higher at 1,177.86 points, its highest close since early September 2008.
The index, up 3 percent this month, has rebounded almost 83 percent since hitting a record low in March 2009.
Miners in the STOXX Europe 600 basic resources index rose 1.6 percent as copper prices neared record highs after data showed a fall in China's trade surplus to a nine-month low, following surprisingly strong imports, notably of copper.
"The import data reaffirms the growth story in China and helps to give confidence in mining companies that interest rate rises are not going to suppress metal demand in the medium term," said Joshua Raymond, market strategist at City Index.
Traders also said there was talk China's consumer price index (CPI (Berlin: CEJ.BE - news) ) may have risen 4.9 percent in the year to January, well below the forecast of 5.3 percent, adding that might be because of weighting changes in the CPI.
"Inflation has been the major worry and there has been a fear of monetary overkill, but until the (inflation) data is released (on Tuesday) we could see a bit of volatility," said Heino Ruland, strategist at Ruland Research in Frankfurt.
Share (LSE: SHRE.L - news) price gains were kept in check by falls in heavyweight banking stocks ahead of sector earnings results due this week. Societe Generale (Paris: FR0000130809 - news) and BNP Paribas (BNPQF.PK - news) , which report this week, both shed around 1.2 percent while Lloyds Banking Group fell 1.7 percent.
Bucking the trend, Credit Suisse (CSMA - news) gained 1.9 percent after the Swiss bank said it will issue 6 billion Swiss francs ($6.2 billion) of contingent convertible capital bonds, or CoCos, to satisfy stricter capital rules. [ID:nLDE71D039]
ARM Holdings (LSE: ARM.L - news) rose 6.6 percent as traders cited bullish notes from Goldman Sachs (NYSE: GS - news) and Morgan Stanley (DWDF.EX - news) on its outlook. Nearly all the world's mobile phones and tablets use the company's low-power technology.
France's Thales (Hamburg: CSF.HM - news) rebounded from earlier losses to rise 4.6 percent, as investors brushed aside a profit warning from the defence company. [ID:nLDE71D0BM]
Cementing expectations of a pick-up in merger and acquisition activity, British energy services provider John Wood Group surged 13.9 percent after U.S. conglomerate General Electric bought a unit of the company for $2.8 billion.
(Reporting by Joanne Frearson;Editing by David Hulmes,sourced:resuters)
Tags:FTSEurofirst, Commodities, European market, shares, Chinease trade data, strong demand, raw materials, STOXX Europe, traders, Credit Suisse, ARM Holdings, Goldman Sachs Group Inc.,Thales, John Wood group, General Electric.
Wednesday, February 2, 2011
Mr Mordashov foresees 8pct rise in Russian steel demand in 2011
Wednesday, 02 Feb 2011
According to Mr Alexey Mordashov chief executive of the leading Russian steelmaker Severstal at the World Economic Forum in Davos, demand in the Russian steel market could increase by eight percent in 2011, adding that in general the world steel market will be characterized by a rising tendency this year.
Mr Mordashov said "The prospects are good; we see an increasing conjuncture, a growing market both in terms of volume and prices. This is undoubtedly based on growing demand in view of national economic growth in Russia and in the world economy as a whole. Plus, we definitely see rising prices for raw materials, which in turn is also caused by the growth of the world economy, particularly in emerging markets."
Mr Mordashov said that in 2011 steel demand in the European market is unlikely to see much increase while in the US market it will grow insignificantly by just 1.5% to 3%. However, the biggest increase in steel demand is perhaps to be expected in the emerging markets.(sourced:steelorbis)
Sunday, January 30, 2011
Poland could float coal miner JSW as early as May
Sunday, 30 Jan. 2011By Geoffrey T. Smith and Marynia Kruk
DAVOS, Switzerland (Dow Jones)--Poland could float state-owned Jastrzebska Spolka Weglowa SA, the European Union's largest coking coal miner, as early as May this year, though the structure of the stake sale is still to be determined, the undersecretary of the treasury, said Friday.
"We're testing various scenarios aiming to float sometime around May or June," Krzysztof Walenczak told Dow Jones Newswires during an interview at the annual World Economic Forum. The initial public offering of JSW could be the largest on the Warsaw Stock Exchange in 2011, though analysts' valuations of the company vary widely, from six billion zlotys ($2.1 billion) to nearly PLN16 billion.
Coking coal has become a hot commodity lately, especially after floods in Australia's Queensland state hit output of the commodity which is mixed with iron ore in blast furnaces to produce steel. Australia provides about two-thirds of all seaborn coking coal.
Poland is in the midst of a privatization drive which is aiming to raise at least PLN15 billion from asset sales this year, after having raised PLN22 billion last year, according to the Treasury Ministry's website.
JSW's valuation could be buoyed by interest from a potential "natural" acquirer from across the border, Czech-based coking coal producer New World Resources (NWR.LN), Pawel Puchalski, an analyst at BZWBK in Warsaw, said Friday.
NWR, which already has two existing projects in Poland, launched a failed takeover bid for Lubelski Wegiel Bogdanka SA (LWB.WA), Poland's only listed coal miner, last year. The company has been able to seek acquisitions because of improved cash flow on soaring demand for coking coal by central European steel makers.
However, JSW's trade unions would likely oppose a bid by NWR. Analysts say JSW could cut about a third of its headcount if it upgraded the equipment it uses the way NWR has.
JSW's Chief Executive Jaroslaw Zagorowski was quoted as saying in state news agency PAP in early January that the listing could be worth between PLN3 billion and PLN5 billion, with the Treasury retaining a 51% stake and employees receiving shares.(sourced:Dow Jones Newswires)
Saturday, January 29, 2011
Euro Coal-Prices up $1-4 a tonne on Colombia strike, oil
* Cerrejon in talks to avoid strike this weekend
* Oil up sharply by $1.84/bbl on fast U.S. growth
* Reuters poll shows 5.5 mln T lost in Queensland floods
* March DES ARA trades at $119.50/T, up $1.00
LONDON, Jan 28 (Reuters) - Prompt coal prices rose $1.00-4.00 a tonne on Friday on stronger oil prices and market anxiety that a strike may start soon at Colombia's largest coal exporter Cerrejon.
Although coal prices have fallen over $12.00 a tonne from the peaks in early January, the market is still vulnerable to any fresh supply disruptions.
Buyers who face delayed or cancelled cargoes will be able to replace them but are likely to push the market higher in the process.
The market has adjusted to the loss of thermal coal from Australia due to Queensland's floods, because China and India have withdrawn from the spot market.
According to a Reuters poll on Thursday, around 5.5 million tonnes of thermal coal was lost in Queensland and 11.3 million tonnes of coking coal.
"Colombia and the possible strike is the talk of the market today but prices haven't moved up much, yet," one major European trader said.
Oil prices moved up sharply by $1.84 a barrel on better than expected U.S. economic data and this helped pull coal values higher, traders said [O/R].
Late on Thursday workers at Colombia's biggest exporter Cerrejon, voted overwhelmingly for a strike after failing to reach agreement on pay.
Under Colombian law, workers cannot strike in the first two days after the vote or on the last day of a mandatory 10-day period. After that they must vote again on whether to strike.
Cerrejon is still trying to reach a deal with the unions before the strike begins.
Colombian exporters including Cerrejon have ample stockpiles at the ports and would be able to ship from these for weeks without delays or cancellations, industry sources said.
The strike would have to be protracted to have any real impact, they said.
But the strike vote has given a fillip to bullish sentiment.
European utilities would be the hardest-hit by any disruption to Cerrejon's exports but they are still holding back from booking new cargoes, waiting for further falls in coal and freight and for the Rhine to reopen fully to barge traffic after an accident.
TRADES
A March delivery DES ARA cargo traded at $119.50 a tonne, up $1.00.
PRICES
A March loading South African cargo was bid at $118.60 with an offer of $119.00, up $4.00 on the bid.
A March delivery DES ARA cargo was bid at $120.00, up $5.00 on the bid, following the earlier trade at $119.50.
An April delivery DES ARA cargo was bid at $116.50 and offered at $119.00, also up $4.00 on the bid.(Reporting by Jackie Cowhig, courtsey sourced: af.reuters)
Friday, January 28, 2011
NWR Says Quarterly Prices for Coke, Coking Coal Gain
Friday, Jan 28, 2011 By Lenka Ponikelska
New World Resources NV, a mining and coking company based in Amsterdam, said contract prices for first-quarter delivery of coke and coal increased.
The company agreed to deliver mostly semi-soft coking coal for an average price of 165 euros ($226) per metric ton, 7 percent up on the previous three months, it said today in a statement. Coke prices are up 1 percent, at 339 euros a ton.
Thermal coal prices are 13 percent higher than a year ago, at 71 euros a ton, the company said.
NWR said it fulfilled its overall coal production targets for 2010. A lower-than-expected proportion of coking coal in the sales mix affected 2010 revenue. The shortfall in coking coal production was partly offset by an increase in that of thermal coal, according to the statement.
The company expects to produce about 11 million tons of coal and 800 kilotons of coke in 2011, the company said, adding that external sales are likely to reach 10.3 million tons of coal and 720 kilotons of coke on 2011.
The company has the capacity to produce an extra 400 kilotons of coal this year, depending on market conditions, the company said.
NWR is due to publish fourth-quarter results on Feb. 24. (sourced : Bloomberg)
Subscribe to:
Posts (Atom)
Posts
