JFE will not up hike stake in JSW Steel - Mr Seshagiri Rao

Thursday, 23 Feb 2012

CNBC-TV18 reported that Mr Seshagiri Rao the joint MD and group CFO of JSW Steel has told that there is no plan today that JFE will increase their stake in JSW beyond 15%.

During an interview with CNBC TV18, while answering to question “Debt levels still remain quite high and JFE Steel a couple of weeks back raised some stake in your company. Now that they have the headway to go all the way up to 25%, is that an option that you may consider in order to bring in higher participation from them and perhaps more cash as well to de-stress the balance sheet”, Mr Rao said “Today, the balance sheet of JSW is not stressed at all. If we look at the overall consolidated debt as on December 31, it was 1.08:1. This is taking into account the FCCBs which we raised as debt only. So balance sheet wise we are quite okay.”

He added “We have 11 million tonne installed and an operating capacity as part of JSW. We don't need any additional equity to come into the company. As per the current agreement with JFE, their overall equity holding is restricted to 15%. They have recently enhanced only to reach the 15% threshold. Otherwise, there is no plan today that JFE will increase their stake in JSW beyond 15%.”

(sourced moneycontrol.com)

Japan crude steel output hits 10-year low for November

Tuesday, 20 December 2011

Japan's crude steel output fell 3.2 percent in November from a year earlier to the lowest level in 10 years for that month, an industry body said on Monday, after floods in Thailand, an Asian hub for car production, reduced demand for steel.The November output figure, which is not seasonally adjusted, was 8.7 million tonnes. That was the lowest for the month since 2001, when November output totalled 8.1 million tonnes, the Japan Iron and Steel Federation said.
Electric furnace steelmakers, which melt steel scrap, increased output in November on a continued recovery in building construction after the March earthquake and tsunami. But Japan's top steelmakers curbed output in reaction to a decline in exports.

"It was November when customers actually started cutting new contract volumes because of the Thai floods," a federation official said, adding that the strong yen was also hurting exports to Asia.
Last month, JFE Steel Corp, the world No.5 steel maker, said it plans to produce 300,000 tonnes less crude steel in the October-December period than originally planned. It joined Nippon Steel Corp and some other Asian steelmakers in cutting output following a rapid deterioration of Asia's steel market since September.

Monday's data showed that output at electric furnace steelmakers rose 5.2 percent from a year earlier to 2.2 million tonnes, but production by blast furnace steelmakers fell 5.8 percent to 6.5 million tonnes. For overall output, it was the third consecutive year-on-year decline, after falling 0.3 percent in October and 3.8 percent in September.Compared with October, output fell 8.3 percent, the fastest month-on-month decline since February 2009. On a daily basis, output was down 5.2 percent from October.Crude steel production totalled 99.2 million tonnes in the first 11 months of this year, down 1.2 percent from the same period in 2010, the data showed.

Source: Reuters

JFE, Sumitomo sticking to iron ore contracts

Tue Oct 25, 2011 2:54am EDT

* Japan not looking to buy from cheaper spot market
* JFE, Sumitomo: not received offers to cut Q4 iron ore prices

TOKYO Oct 25 (Reuters) - Japanese steelmakers JFE Holdings Inc and Sumitomo Metal Industries Ltd on Tuesday said they would not cancel their October-December iron ore contracts despite a plunge in spot market prices.

As spot prices fell to their lowest in 12 months, Chinese steel mills were seeking to postpone iron ore shipments or renegotiate fourth-quarter contracts, traders said, while top producer Vale said it was open to discussing a different pricing system with clients.

"It is against our creed that we break contracts and shift to spot buying when the market is not good. We believe that raw materials costs should remain stable," Eiji Hayashida, chairman of the Japan Iron and Steel Federation, told a news conference.

JFE had not received an offer from miners to reduce the October-December iron ore price, Hayashida added.

"We'll stick to purchasing contracts irrespective of the ups and downs of the spot market," an official at Sumitomo Metal Industries told Reuters.

Weaker demand for steel in China, the world's biggest consumer and producer, has dragged down steel prices <0#SRB:> and slashed the appetite for iron ore, the key raw material for the industry.

Under the quarterly contract system created last year, iron ore in the fourth-quarter will be priced at more than $175 a tonne, much higher than the current spot market rate of around $142. .IO62-CNI=SI

Hayashida said global financial woes and floods in Thailand may reduce Japan's crude steel output in April 2011-March 2012 by 1 million tonnes to below 108 million tonnes.

Thailand's worst flooding in five decades forced Toyota Motor Corp to suspend production through Oct. 28 due to supply disruptions. Japan's biggest automaker said it had lost production of 37,500 vehicles since output was halted on Oct. 10.

Thailand is Japan's third-biggest export market for steel, followed by South Korea and China, accounting for 11 percent of Japan's steel exports in January-August.

(sourced Reuters)

Chinese firms take 15-pct stake in niobium producer CBMM

Thu Sep 1, 2011

SHANGHAI, Sept 1 (Reuters) - China's Citic Group has teamed up with stainless steel producers Taiyuan Iron and Steel and Baosteel to acquire a 15-percent stake in a Brazilian niobium producer for $1.95 billion, the official Xinhua news agency reported on Thursday.

Companhia Brasileira de Metalurgia e Mineracao (CBMM) is the world's largest niobium producer. The metal is mainly used to produce superalloys for high-tech sectors as well as to make stainless steel.

The deal will be completed on Thursday, Xinhua reported, without citing sources.

A consortium of four Japanese companies -- JFE Holdings , Nippon Steel , Sojitz Corp and government-funded Japan Oil, Gas & Metals National Corp -- as well as South Korea's National Pension Service and Posco , bought a combined 15 percent stake in CBMM for about $1.8 billion in March.

Nippon, POSCO, others in $1.8 bln Brazil rare-metal deal

Thu Mar 3, 2011 4:24am GMT

* Japanese group to take 10 pct of Brazil's CBMM - NPS
* POSCO, NPS to buy 5 pct, invest about $312 mln each - NPS
* Deal values unlisted CBMM at around $12 bln
* Asian countries in race to secure metals used in auto steel
By Hyunjoo Jin and Ju-min Park

SEOUL, March 3 (Reuters) - Nippon Steel Corp , JFE , POSCO and others will buy a 15 percent stake in a Brazilian rare metal miner for around $1.8 billion, South Korea's National Pension Service (NPS) said on Thursday.

The deal adds to a growing cross-border tie-ups by Japan and South Korea to secure natural resources to power their manufacturing-based economies.

The Brazilian company is Companhia Brasileira de Metalurgia e Mineracao (CBMM), which mines and processes niobium, a rare metal used to produce high-grade steel used in autos, aerospace and pipeline to make steel products lighter and stronger.

Brazil is the world's No. 1 Niobium producer. The Brazilian mining industry association (IBRAM) data said Brazil produced 80,000 tonnes out of world production of 83,000 tonnes produced globally in 2010 and the ratio has been similar in the last decade.

CHINA VS JAPAN, KOREA

"Behind the move is a growing demand for niobium in China, and its aggressive move to secure supplies from abroad because its domestic output is very limited," said Kaz Machida, president of KAY International, a rare metal consultant.

"Japanese steelmakers, worried of China's aggressive moves, moved quickly in a tie-up with Korean firms," he said.

China's domestic niobium production is limited, although demand is expected to soar in the future. In contrast, China has rich rare earth supplies, producing 97 percent of the minerals.

An NPS spokesman said Japanese investors including Nippon Steel, JFE Holdings and trading firm Sojitz Corp will buy a 10 percent stake in CBMM.

South Korea's POSCO and National Pension Service will jointly buy 5 percent of the unlisted company, investing around 350 billion won ($312 million) each, the NPS spokesman said.

"Resources assets tend to generate higher returns and the joint investment with industry specialists such as steelmakers will generate more synergies," the spokesman said.

The deal values the unlisted CBMM at around $12 billion.

Another Japanese-Korean consortium is bidding to develop the world's largest untapped coking coal deposit in Mongolia, while Japanese trading firm Itochu Corp and six Asian steelmakers paid about $3 billion for a 40 percent stake in Brazilian iron ore miner Namisa in 2008. (Additional reporting by Yuko Inoue in Tokyo and Peter D. Murphy in Brasilia; Editing by Jonathan Hopfner and Lincoln Feast,sourced:Thomson Reuters)

Tags :(CBMM), high grade steel metal, aerospace, pipeline, steel products, IBRAM, Mongolia, raw material, steel mills

JFE to up steel sheet price by Y20,000 from April

Thu Feb 24, 2011 5:56am GMT

TOKYO Feb 24 (Reuters) - Japan's JFE Steel Corp (5411.T: Quote) said on Thursday it will raise prices of steel sheet for sale through distributors by 20,000 yen ($242) per tonne from April, signalling to high-volume contract users such as Toyota Motor Corp (7203.T: Quote) the level of price hike it seeks.

Input costs for steelmaking are expected to rise sharply in the April-June quarter as demand in Asia remains strong and unresolved logistical bottlenecks due to disruptions in Australia boost coal prices, though steel product prices have yet to fully reflect higher costs.

But prospects of price talks between steelmakers such as JFE and Nippon Steel Corp (5401.T: Quote) and high-volume users who buy via contracts, including Toyota, have becoming uncertain, given BHP Billiton's (BHP.AX: Quote) BLT.l demand to shift coal pricing to a monthly basis instead of quarterly as it is now.

JFE Steel President Eiji Hayashida called BHP's proposal unacceptable on Wednesday, saying it would make costs hard to predict and complicate steel users' production plans. [ID:nTOE71M03V]

Japanese steelmakers and carmakers usually set contract prices for steel sheet for the six months to September after costs of iron ore and coal are set.

The cost of iron ore in April-June is expected to jump as much as 25 percent from the preceding quarter to a record high.

JFE, the world's No.5 steelmaker, does not disclose contract prices with large-lot users, but has said it expects its steel product prices including exports to average 79,000 yen per tonne for the current year to March 31. ($1=82.54 Yen) (Reporting by Yuko Inoue; Editing by Michael Watson, sourced: Thomson Reuters)

WorldAutoSteel, the automotive group of the World Steel Association, is comprised of seventeen major global steel producers from around the world

About WorldAutoSteel:

WorldAutoSteel, the automotive group of the World Steel Association, is comprised of seventeen major global steel producers from around the world.

Our mission is to advance and communicate steel’s unique ability to meet the automotive industry’s needs and challenges in a sustainable and environmentally responsible way. We are committed to a low carbon future, the principles of which are embedded in our continuous research, manufacturing processes, and ultimately, in the advancement of automotive steel products, for the benefit of society and future generations.

Members

Anshan Iron and Steel Group Corporation - China
Arcelor Mittal - Luxembourg
Baoshan Iron & Steel Co. Ltd. - China
China Steel Corporation - Taiwan, China
Hyundai-Steel Company - South Korea
JFE Steel Corporation - Japan
Kobe Steel, Ltd. - Japan
Nippon Steel Corporation - Japan
Nucor Corporation - USA
POSCO - South Korea
SeverStal - Russia/USA
Sumitomo Metal Industries, Ltd. - Japan
Tata Steel - India, UK, Netherlands
ThyssenKrupp Steel Europe AG - Germany
USIMINAS - Brazil
United States Steel Corporation - USA
voestalpine Stahl GmbH - Austria

To learn more about WorldAutoSteel and its projects, visit www.worldautosteel.org

Tags:Usiminas, United States Steel Corp, ThyssenKrupp Steel Europe, Severstal, Kobe steel, China Steel Corp, Baoshan Iron and Steel Co., Anshan Iron and Steel Group

Tata Steel margins under pressure, in talks with Rio

Tue Feb 15, 2011 3:44pm GMT

* Q3 profit 10.03 bln rupees vs estimate of 11.1 bln rupees

* Sees 2011 Europe steel demand up 3-5 pct, India's 10-12 pct

* Interested in coal supplies from Riversdale,talking to Rio

By Prashant Mehra

MUMBAI, Feb 15 (Reuters) - Tata Steel (TISC.BO: Quote) said its margins would remain under pressure due to rising raw material prices, adding that it was in talks with Rio Tinto (RIO.AX: Quote) to ensure coal supplies from Africa-focused miner Riversdale (RIV.AX: Quote).
The world's No. 7 steelmaker on Tuesday said quarterly net profit more than doubled, driven by demand and pricing in Europe and robust growth at its Indian operations, but the company lagged estimates as higher raw material costs squeezed margins.
The $500 billion global steel sector has been caught in a margin squeeze since the middle of 2010, when raw material costs began increasing and steel prices dropped as activity slowed. While demand is improving from the auto sector, the other key market, construction, is struggling to pull clear of the crisis.

Tata Steel said it expected steel demand in Europe to rise 3 to 5 percent this year and demand in India to grow 10 to 12 percent, but managing raw material costs would be a key challenge.
"Margins are under pressure because we are consuming raw materials at inflated prices," Karl Kohler, head of Tata Steel's European operations, told reporters after the results announcement.
"Selling prices are recovering but the position needs to be maintained as impact of raw material costs is increasing."

Managing Director Hemant Nerurkar said Tata Steel was interested in securing coal supplies from Riversdale, in which it owns a 24 percent stake. Riversdale has received a $3.9 billion bid from Rio Tinto, which was backed by Tata Steel's representative on Riversdale's board.
"We are basically interested in securing coal supplies. We are discussing various options with Rio," Nerurkar said.

Tata Steel acquired Corus, Europe's second-largest steelmaker, for $13 billion in 2007, marking the largest overseas acquisition made by an Indian company so far.
European operations account for two-thirds of Tata Steel's global capacity of about 30 million tonnes, while the Indian operations contribute a quarter. It also has units in Thailand and Singapore.
Most global steelmakers have suffered sharp falls in December quarter profit. Last week, the world's largest steelmaker ArcelorMittal (ISPA.AS: Quote) reported profit lower than the previous quarter, but forecast a rebound in demand and prices at the start of 2011. POSCO (005490.KS: Quote), Nippon Steel (5401.T: Quote) and JFE (5411.T: Quote), some of the largest steelmakers, all suffered sharp falls in October-December earnings due to pricey raw materials and tepid demand.

Q3 PROFIT MORE THAN DOUBLES
Tata Steel reported a net profit after minority interest and share of profit of associates of 10.03 billion rupees ($220 million) for its fiscal third quarter ended December, compared with a consolidated net profit of 4.73 billion rupees a year ago.
Net sales were 286.06 billion rupees compared with 260.69 billion a year earlier.
A Reuters poll of brokerages had forecast a net profit of 11.1 billion rupees for the quarter, on net sales of 263.2 billion.
Last month, Tata Steel raised $770 million in a share sale in India to fund a 3-million-tonne capacity expansion at a plant in eastern India and repay a part of its $10 billion debt. [ID:nSGE70K06A]
Tata Steel said it had started preparatory work for a 6 million-tonne a year steel plant in the eastern state of Orissa.
Shares in Tata Steel, valued by the market at about $12.3 billion, are down about 9 percent so far in 2011, compared with about 11 percent fall in India's benchmark stock index .BSESN.
Ahead of the results, Tata Steel shares closed 0.4 percent lower at 616.55 rupees in a Mumbai market that rose 0.4 percent. ($1=45.5 rupees) (sourced:ThomsonReuters)

Tags:Tata steel, margins under pressure, Rio Tinto, Riversdale Mining Ltd., Europe, Q3, raw material, steelmakers, Corus, Thailand, Singapore, ArcelorMittal, POSCO, Nippon Steel Corp, JFE