Friday, 27 Jan 2012
A shortage of explosives have affected mining at Whitehaven Coal sites Source:
The Courier Mail reported that Whitehaven Coal sales fell in the December quarter after a shortage of explosives hampered mining.
The miner reported total coal sales of almost 1.43 million tonnes for the three months to December 31st down 22% compared with the same period in 2010.
According to Whitehaven, a shortage of explosives due to the shutdown of Orica's Newcastle plant prevented it from mining ore bodies in the preferred sequence.
The company sad that a shipment scheduled to load late last month did not load until this month and there was a minor impact from wet weather on its open cut mines.
Morningstar senior resources analyst Mr Gareth James said that "This doesn't change the outlook for Whitehaven. Short term issues like this don't really have much meaning."
According to the company, Whitehaven's underground mine under development at Narrabri, in northwest NSW, continued to be hampered by a lack of skilled underground miners. But the capital cost estimate for the project of about USD 300 million remained unchanged.
The company had to buy 381,000 tonnes of coal from other suppliers during the December quarter to meet fixed price legacy contracts entered into in 2005-06, but these obligations would be fully met by the end of the current financial year.
(Sourced from AAP)
Showing posts with label Q3. Show all posts
Showing posts with label Q3. Show all posts
Friday, January 27, 2012
Friday, November 4, 2011
Mittal suffers loss after furnace fails
Conditions in struggling South African steel industry worsen over the past quarter
Friday, November04, 2011
ArcelorMittal SA reported a R460m headline loss for the third quarter ended September, following the failure of the blast furnace system at its Newcastle works in KwaZulu-Natal, and a sharp rise in input costs.
This compares with headline earnings of R473m for the previous quarter, and R68m for the same period last year.
The group also said yesterday that operating conditions in the steel industry had deteriorated sharply over the past quarter, with the weaker trend in SA’s economy having a big effect on major steel consumers. Strike s in the sector in July hit deliveries, with customers forced to delay orders.
"It has been a difficult and challenging quarter," CEO Nonkululeko Nyembezi-Heita said yesterday. "The Newcastle incident resulted in a substantial loss of production with a concomitant effect on our quarterly results."
She said to ease the effect on customers, 240000 tons of steel was secured in SA and globally, from ArcelorMittal Group mills, and dispatched from mid-October. This still left the market short, with a knock-on effect in the mainstay building and construction sector.
Most of ArcelorMittal SA’s key drivers exhibited stable to negative trends, with raw material prices rising further, and electricity costs soaring 25%. But the firm said strong growth was experienced in Kenya and Zambia, with increased activity in the construction and mining sectors.
"Management (said) at the half-year results that the third quarter would be tough, but the Newcastle furnace issues resulted in a much poorer result," Rubin Renecke, equity analyst at Kagiso Asset Management, said yesterday. "Globally, steel demand remains sluggish ... (but) the weaker rand against the dollar should be positive for local steel pricing going forward."
Year on year, revenue in the quarter rose 5% to R7,6bn, following an 11% increase in average net realised prices, but was considerably down from R8,8bn in the preceding June quarter. Overall steel sales were flat at 1,1-million tons, with long steel products falling by 10%, while flat steel products rose 4%.
Revenue from ArcelorMittal SA’s coke and chemicals division declined 38%, following a 40% decline in commercial coke sales and an 11% drop in average net realised prices. Sales were also hampered by weaker seasonal demand from the ferro-alloy industry due to high winter electricity tariffs, and the poor state of the stainless steel industry.
Liquid steel production fell 17% to 1,2-million tons in the quarter, mainly as a result of the structural failure at Newcastle.
(sourced BusinessDay)
Friday, November04, 2011
ArcelorMittal SA reported a R460m headline loss for the third quarter ended September, following the failure of the blast furnace system at its Newcastle works in KwaZulu-Natal, and a sharp rise in input costs.
This compares with headline earnings of R473m for the previous quarter, and R68m for the same period last year.
The group also said yesterday that operating conditions in the steel industry had deteriorated sharply over the past quarter, with the weaker trend in SA’s economy having a big effect on major steel consumers. Strike s in the sector in July hit deliveries, with customers forced to delay orders.
"It has been a difficult and challenging quarter," CEO Nonkululeko Nyembezi-Heita said yesterday. "The Newcastle incident resulted in a substantial loss of production with a concomitant effect on our quarterly results."
She said to ease the effect on customers, 240000 tons of steel was secured in SA and globally, from ArcelorMittal Group mills, and dispatched from mid-October. This still left the market short, with a knock-on effect in the mainstay building and construction sector.
Most of ArcelorMittal SA’s key drivers exhibited stable to negative trends, with raw material prices rising further, and electricity costs soaring 25%. But the firm said strong growth was experienced in Kenya and Zambia, with increased activity in the construction and mining sectors.
"Management (said) at the half-year results that the third quarter would be tough, but the Newcastle furnace issues resulted in a much poorer result," Rubin Renecke, equity analyst at Kagiso Asset Management, said yesterday. "Globally, steel demand remains sluggish ... (but) the weaker rand against the dollar should be positive for local steel pricing going forward."
Year on year, revenue in the quarter rose 5% to R7,6bn, following an 11% increase in average net realised prices, but was considerably down from R8,8bn in the preceding June quarter. Overall steel sales were flat at 1,1-million tons, with long steel products falling by 10%, while flat steel products rose 4%.
Revenue from ArcelorMittal SA’s coke and chemicals division declined 38%, following a 40% decline in commercial coke sales and an 11% drop in average net realised prices. Sales were also hampered by weaker seasonal demand from the ferro-alloy industry due to high winter electricity tariffs, and the poor state of the stainless steel industry.
Liquid steel production fell 17% to 1,2-million tons in the quarter, mainly as a result of the structural failure at Newcastle.
(sourced BusinessDay)
Saturday, October 29, 2011
ArcelorMittal Announces the Publication of Q311 EBITDA Sell-Side Analyst Consensus Figures on
Press release
Oct.29, 2011
LUXEMBOURG: ArcelorMittal today announces the publication of sell-side analysts' consensus forecasts for ArcelorMittal's Q3'11 EBITDA. The consensus figures are based on sell-side analyst estimates recorded on an external web based tool provided and managed by an independent company called Vuma Financial Services Limited (trade name:Vuma Consensus). The consensus figures together with the full list of sell-side analysts who submitted their forecasts are available on our website.
View consensus figures
ArcelorMittal does not express any opinion as to the accuracy or relevance of this consensus or any component thereof. Any use of or reliance on this data is purely at the risk of the user.
About ArcelorMittal:
ArcelorMittal is the world's leading integrated steel and mining company, with a presence in more than 60 countries.
ArcelorMittal is the leader in all major global carbon steel markets, including automotive, construction, household appliances and packaging, with leading R&D and technology. The Group also has a world class mining business with a global portfolio of over 20 mines in operation and development, and is the world's 4th largest iron ore producer. With operations in over 22 countries spanning four continents, the Company covers all of the key industrial markets, from emerging to mature, and has outstanding distribution networks.
Through its core values of sustainability, quality and leadership, ArcelorMittal commits to operating in a responsible way with respect to the health, safety and well-being of its employees, contractors and the communities in which it operates. It is also committed to the sustainable management of the environment. It takes a leading role in the industry's efforts to develop breakthrough steelmaking technologies and is actively researching and developing steel-based technologies and solutions that contribute to combat climate change. ArcelorMittal is a member of the FTSE4Good Index and the Dow Jones Sustainability World Index.
In 2010, ArcelorMittal had revenues of $78.0 billion and crude steel production of 90.6 million tonnes, representing approximately 6 per cent of world steel output. The Group's mining operations produced 47 million tonnes of iron ore and 7 million tonnes of metallurgical coal.
ArcelorMittal is listed on the stock exchanges of New York (MT), Amsterdam (MT), Paris (MT), Brussels (MT), Luxembourg (MT) and on the Spanish stock exchanges of Barcelona, Bilbao, Madrid and Valencia (MTS).
For more information about ArcelorMittal visit: www.arcelormittal.com .
source: ArcelorMittal
Oct.29, 2011
LUXEMBOURG: ArcelorMittal today announces the publication of sell-side analysts' consensus forecasts for ArcelorMittal's Q3'11 EBITDA. The consensus figures are based on sell-side analyst estimates recorded on an external web based tool provided and managed by an independent company called Vuma Financial Services Limited (trade name:Vuma Consensus). The consensus figures together with the full list of sell-side analysts who submitted their forecasts are available on our website.
View consensus figures
ArcelorMittal does not express any opinion as to the accuracy or relevance of this consensus or any component thereof. Any use of or reliance on this data is purely at the risk of the user.
About ArcelorMittal:
ArcelorMittal is the world's leading integrated steel and mining company, with a presence in more than 60 countries.
ArcelorMittal is the leader in all major global carbon steel markets, including automotive, construction, household appliances and packaging, with leading R&D and technology. The Group also has a world class mining business with a global portfolio of over 20 mines in operation and development, and is the world's 4th largest iron ore producer. With operations in over 22 countries spanning four continents, the Company covers all of the key industrial markets, from emerging to mature, and has outstanding distribution networks.
Through its core values of sustainability, quality and leadership, ArcelorMittal commits to operating in a responsible way with respect to the health, safety and well-being of its employees, contractors and the communities in which it operates. It is also committed to the sustainable management of the environment. It takes a leading role in the industry's efforts to develop breakthrough steelmaking technologies and is actively researching and developing steel-based technologies and solutions that contribute to combat climate change. ArcelorMittal is a member of the FTSE4Good Index and the Dow Jones Sustainability World Index.
In 2010, ArcelorMittal had revenues of $78.0 billion and crude steel production of 90.6 million tonnes, representing approximately 6 per cent of world steel output. The Group's mining operations produced 47 million tonnes of iron ore and 7 million tonnes of metallurgical coal.
ArcelorMittal is listed on the stock exchanges of New York (MT), Amsterdam (MT), Paris (MT), Brussels (MT), Luxembourg (MT) and on the Spanish stock exchanges of Barcelona, Bilbao, Madrid and Valencia (MTS).
For more information about ArcelorMittal visit: www.arcelormittal.com .
source: ArcelorMittal
Thursday, October 27, 2011
Coal miner Consol's Q3 profit rises, beats Street
Thu Oct 27, 2011
* Q3 net profit 73 cts/shr v Wall St view 68 cts/shr
* Revenue of $1.4 billion is company's highest Q3
Oct 27 (Reuters) - Coal and natural gas producer Consol Energy Inc's third-quarter profit beat Wall Street estimates, more than doubling on higher prices for its steel-making coal.
The company also raised its annual dividend 25 percent.
Net income was $167 million, or 73 cents per share, compared with $75 million, or 33 cents per share, a year earlier, the Pittsburgh-based company said on Thursday.
Analysts on average were expecting earnings of 68 cents per share, according to Thomson Reuters I/B/E/S.
Revenue rose to $1.4 billion -- Consol's highest ever for a third quarter. Most of the increase came from much higher average realized prices from steel-making metallurgical coal sales. The average was $209 per ton, compared with $165.61 per ton a year earlier.
For the second consecutive quarter, Consol generated more cash from its metallurgical business than from thermal, or steam coal, which is used to power electricity generation.
But Consol said profitability in its natural gas business division slipped from the 2010 quarter, despite 13 percent higher gas volumes. Unit gas margins fell, primarily due to a decrease in realized gas prices, it said, while unit gas costs declined, mostly because of higher proved reserves.
Consol said it expects overall unit costs to continue to decline over time as the company increases its emphasis on low- cost drilling in the Marcellus Shale region of the northeastern United States.
In the third quarter, Consol produced 14.7 million tons of coal -- in line with its estimate -- and it anticipates fourth-quarter production of 14.7 million to 15.3 million tons.
Two weeks ago, Consol said production at two of its Appalachian mines was affected by structural problems, but it still expects to hit its targets for the year.
Last month, the company raised its 2011 coal export forecast, saying it sees higher shipments to Asia and expects overall export markets to remain strong this year.
Consol's board of directors increased the regular annual dividend 25 percent, or 10 cents per share, to 50 cents per share. The regular quarterly dividend of 12.5 cents per share, is payable on Nov. 25, to shareholders of record on Nov. 11.
(sourced Reuters)
* Q3 net profit 73 cts/shr v Wall St view 68 cts/shr
* Revenue of $1.4 billion is company's highest Q3
Oct 27 (Reuters) - Coal and natural gas producer Consol Energy Inc's third-quarter profit beat Wall Street estimates, more than doubling on higher prices for its steel-making coal.
The company also raised its annual dividend 25 percent.
Net income was $167 million, or 73 cents per share, compared with $75 million, or 33 cents per share, a year earlier, the Pittsburgh-based company said on Thursday.
Analysts on average were expecting earnings of 68 cents per share, according to Thomson Reuters I/B/E/S.
Revenue rose to $1.4 billion -- Consol's highest ever for a third quarter. Most of the increase came from much higher average realized prices from steel-making metallurgical coal sales. The average was $209 per ton, compared with $165.61 per ton a year earlier.
For the second consecutive quarter, Consol generated more cash from its metallurgical business than from thermal, or steam coal, which is used to power electricity generation.
But Consol said profitability in its natural gas business division slipped from the 2010 quarter, despite 13 percent higher gas volumes. Unit gas margins fell, primarily due to a decrease in realized gas prices, it said, while unit gas costs declined, mostly because of higher proved reserves.
Consol said it expects overall unit costs to continue to decline over time as the company increases its emphasis on low- cost drilling in the Marcellus Shale region of the northeastern United States.
In the third quarter, Consol produced 14.7 million tons of coal -- in line with its estimate -- and it anticipates fourth-quarter production of 14.7 million to 15.3 million tons.
Two weeks ago, Consol said production at two of its Appalachian mines was affected by structural problems, but it still expects to hit its targets for the year.
Last month, the company raised its 2011 coal export forecast, saying it sees higher shipments to Asia and expects overall export markets to remain strong this year.
Consol's board of directors increased the regular annual dividend 25 percent, or 10 cents per share, to 50 cents per share. The regular quarterly dividend of 12.5 cents per share, is payable on Nov. 25, to shareholders of record on Nov. 11.
(sourced Reuters)
New World Resources Quarterly Coking Coal Price Falls 9%
Thu,October 27, 2011
Oct. 27 (Bloomberg) -- New World Resources Plc, the biggest Czech producer of coking coal, said the average agreed price for coking coal and coke delivery in the fourth quarter declined because of weaker European demand.
The price of coking coal fell 9 percent from the previous quarter to 171 euros ($239) per ton, the Amsterdam-based miner said today in a Regulatory News Service statement. Coke prices for the last three months of the year are seen at 341 euros a ton, down 13 percent from the previous quarter, the company said.
The thermal coal price for 2011 is unchanged at 71 euros a ton, the company said. The miner cut its 2011 coke sales estimate to between 525 and 575 kilotons, from a previous forecast of 720 kilotons.
The figures show continued weakness in coking coal prices and a decline in the price premium over Asian markets, Ceska Sporitelna AS analyst Petr Bartek wrote in a report to clients. The production mix of the company remains “weak,” wrote Bartek who recommends investors “accumulate” shares in the company.
NWR produces coking, or steelmaking, coal and thermal coal and owns four mines and two coking facilities in the Czech Republic. It sells coal to customers including the Czech unit of ArcelorMittal, the world’s largest steelmaker.
NWR, which reiterated its full-year production targets, fell 1.38 koruna, or less than 1 percent, to 143.62 in Prague trading as of 10:30 a.m.
(sourced Business Week)
Oct. 27 (Bloomberg) -- New World Resources Plc, the biggest Czech producer of coking coal, said the average agreed price for coking coal and coke delivery in the fourth quarter declined because of weaker European demand.
The price of coking coal fell 9 percent from the previous quarter to 171 euros ($239) per ton, the Amsterdam-based miner said today in a Regulatory News Service statement. Coke prices for the last three months of the year are seen at 341 euros a ton, down 13 percent from the previous quarter, the company said.
The thermal coal price for 2011 is unchanged at 71 euros a ton, the company said. The miner cut its 2011 coke sales estimate to between 525 and 575 kilotons, from a previous forecast of 720 kilotons.
The figures show continued weakness in coking coal prices and a decline in the price premium over Asian markets, Ceska Sporitelna AS analyst Petr Bartek wrote in a report to clients. The production mix of the company remains “weak,” wrote Bartek who recommends investors “accumulate” shares in the company.
NWR produces coking, or steelmaking, coal and thermal coal and owns four mines and two coking facilities in the Czech Republic. It sells coal to customers including the Czech unit of ArcelorMittal, the world’s largest steelmaker.
NWR, which reiterated its full-year production targets, fell 1.38 koruna, or less than 1 percent, to 143.62 in Prague trading as of 10:30 a.m.
(sourced Business Week)
Vale Profit Misses Analysts’ Estimates As Currency Fall Boosts Dollar Debt
Thu, Oct27, 2011
Vale SA (VALE5), the world’s largest iron- ore producer, posted its first decline in quarterly profit in two years and missed analysts’ estimates after a weaker Brazilian real boosted dollar-denominated debt.
Third-quarter net income fell to $4.94 billion, or 94 cents a share, from $6.04 billion, or $1.13 a share, a year earlier, Rio de Janeiro-based Vale said late yesterday. The company was expected to post per-share profit of $1.17 excluding some items, the average of 12 analysts in a Bloomberg survey. Vale had a financial loss of $2.19 billion related to the real’s drop, while sales rose 16 percent to $16.4 billion.
Vale dropped to its lowest in more than two months on Oct. 20 after iron-ore prices slumped on concern about slowing demand in China and fear the European debt crisis will spread. ArcelorMittal, the world’s biggest steelmaker, is idling some plants in Europe and South Korea’s Posco will cut spending and reduce costs on weaker demand for the alloy used in cars.
The foreign exchange loss “was a bit higher than originally estimated,” Rafael Weber, an equity analyst at Geracao Futuro Corretora, said in a telephone interview from Porto Alegre, Brazil. “With the appreciation of the real, it will be recovered in the following quarter.”
The real slumped 17 percent in the third quarter, the second-worst emerging market performer after Poland, increasing the value of Vale’s dollar-denominated debt in local currency.
Rising Revenue
Earnings before interest, tax, depreciation and amortization, or Ebitda, climbed 9.2 percent to a record $9.63 billion in the quarter, driven by higher iron-ore, nickel and copper revenue, the company said. Vale said it sold iron ore during the period at an average of $151.30 per metric ton, 18 percent more than the year-earlier period.
The company said it’s confident in the long-term outlook for mineral and metals markets amid global financial turmoil. The recent fall in iron-ore prices is related to higher seasonal supply from Brazil and Australia and China’s credit policy, which affects iron-ore traders by not giving them the option of using their stocks as credit guarantee, it said.
“We foresee prices to remain high for a long period ahead as the global iron-ore market is very likely to continue to show strong fundamentals,” Vale said in the statement. “The main reason for the decline in the net income was the depreciation of the real against the dollar.”
“It’s not that you are taking on more debt, it’s that your liability is going up because of the exchange rate,” Rene Kleyweg, an equity analyst at UBS AG, said in a telephone interview from London Oct. 25. “From a reporting numbers standpoint it means your net income gets dragged back.” He rates the stock a “buy.”
Record at Carajas
This is the first time since the third quarter of 2009 that Vale’s quarterly net income fell from a year earlier.
Third-quarter iron-ore output rose 6.4 percent to a record 87.9 million metric tons, after Carajas, the world’s biggest iron-ore mine, recorded record production of 30.9 million metric tons. Nickel output rose 30 percent to 58,000 metric tons, while copper production climbed 46 percent to a record 84,000 metric tons, the company said. Potash production rose about 7.3 percent to 166,000 tons.
Iron-ore and pellet volumes sold during the quarter fell 1.4 percent to 77.5 million metric tons, the company said, adding that the gap between production and sales was explained by lower iron-ore demand in Brazil, the need to rebuild stocks and the start of a distribution center in Oman.
“Vale needs to continue with its sales at a normal level because accumulating inventories to a high level is bad,” Geracao Futuro’s Weber said.
The company’s net debt as of Sept. 30 rose to $15.4 billion, from $11.2 billion at the end of the previous quarter.
Vale invested $4.53 billion, excluding acquisitions, during the quarter, about 19 percent of its $24 billion spending plan until the first quarter of 2012.
Vale, the world’s second-largest mining company by market value, plans to pay a record $12 billion in dividends and share buybacks this year, boosting capital returns to investors as it faces project delays and cost increases.
Sliding Prices
The company is forecast to post a record $26.5 billion in net income excluding some items during 2011, up from $17.3 billion last year, according to 16 analyst estimates compiled by Bloomberg.
Iron-ore prices for immediate delivery extended their slump this week and fell below $130 for the first time since July 2010 yesterday. The price of ore with 62 percent iron content delivered to the Chinese port of Tianjin declined 3.3 percent to $127.40 a metric ton, its 13th-consecutive drop, according to The Steel Index Ltd.
The cash price fell $10.20 yesterday, or 7.2 percent, its biggest slump since Aug. 20, 2009.
The Chinese economy grew 9.1 percent during the third quarter from a year earlier, the slowest pace since 2009. Vale sold about 45 percent of its iron-ore and pellets to Chinese customers during the third quarter, or about 35 million metric tons, it said yesterday. Europe represented 20 percent of the company’s shipments.
Vale gained 99 centavos, or 2.5 percent, to 40.73 reais in Sao Paulo yesterday. The stock has declined about 16 percent this year, compared with an 18 percent for Brazil’s benchmark Bovespa Index.
(sourced Bloomberg)
Vale SA (VALE5), the world’s largest iron- ore producer, posted its first decline in quarterly profit in two years and missed analysts’ estimates after a weaker Brazilian real boosted dollar-denominated debt.
Third-quarter net income fell to $4.94 billion, or 94 cents a share, from $6.04 billion, or $1.13 a share, a year earlier, Rio de Janeiro-based Vale said late yesterday. The company was expected to post per-share profit of $1.17 excluding some items, the average of 12 analysts in a Bloomberg survey. Vale had a financial loss of $2.19 billion related to the real’s drop, while sales rose 16 percent to $16.4 billion.
Vale dropped to its lowest in more than two months on Oct. 20 after iron-ore prices slumped on concern about slowing demand in China and fear the European debt crisis will spread. ArcelorMittal, the world’s biggest steelmaker, is idling some plants in Europe and South Korea’s Posco will cut spending and reduce costs on weaker demand for the alloy used in cars.
The foreign exchange loss “was a bit higher than originally estimated,” Rafael Weber, an equity analyst at Geracao Futuro Corretora, said in a telephone interview from Porto Alegre, Brazil. “With the appreciation of the real, it will be recovered in the following quarter.”
The real slumped 17 percent in the third quarter, the second-worst emerging market performer after Poland, increasing the value of Vale’s dollar-denominated debt in local currency.
Rising Revenue
Earnings before interest, tax, depreciation and amortization, or Ebitda, climbed 9.2 percent to a record $9.63 billion in the quarter, driven by higher iron-ore, nickel and copper revenue, the company said. Vale said it sold iron ore during the period at an average of $151.30 per metric ton, 18 percent more than the year-earlier period.
The company said it’s confident in the long-term outlook for mineral and metals markets amid global financial turmoil. The recent fall in iron-ore prices is related to higher seasonal supply from Brazil and Australia and China’s credit policy, which affects iron-ore traders by not giving them the option of using their stocks as credit guarantee, it said.
“We foresee prices to remain high for a long period ahead as the global iron-ore market is very likely to continue to show strong fundamentals,” Vale said in the statement. “The main reason for the decline in the net income was the depreciation of the real against the dollar.”
“It’s not that you are taking on more debt, it’s that your liability is going up because of the exchange rate,” Rene Kleyweg, an equity analyst at UBS AG, said in a telephone interview from London Oct. 25. “From a reporting numbers standpoint it means your net income gets dragged back.” He rates the stock a “buy.”
Record at Carajas
This is the first time since the third quarter of 2009 that Vale’s quarterly net income fell from a year earlier.
Third-quarter iron-ore output rose 6.4 percent to a record 87.9 million metric tons, after Carajas, the world’s biggest iron-ore mine, recorded record production of 30.9 million metric tons. Nickel output rose 30 percent to 58,000 metric tons, while copper production climbed 46 percent to a record 84,000 metric tons, the company said. Potash production rose about 7.3 percent to 166,000 tons.
Iron-ore and pellet volumes sold during the quarter fell 1.4 percent to 77.5 million metric tons, the company said, adding that the gap between production and sales was explained by lower iron-ore demand in Brazil, the need to rebuild stocks and the start of a distribution center in Oman.
“Vale needs to continue with its sales at a normal level because accumulating inventories to a high level is bad,” Geracao Futuro’s Weber said.
The company’s net debt as of Sept. 30 rose to $15.4 billion, from $11.2 billion at the end of the previous quarter.
Vale invested $4.53 billion, excluding acquisitions, during the quarter, about 19 percent of its $24 billion spending plan until the first quarter of 2012.
Vale, the world’s second-largest mining company by market value, plans to pay a record $12 billion in dividends and share buybacks this year, boosting capital returns to investors as it faces project delays and cost increases.
Sliding Prices
The company is forecast to post a record $26.5 billion in net income excluding some items during 2011, up from $17.3 billion last year, according to 16 analyst estimates compiled by Bloomberg.
Iron-ore prices for immediate delivery extended their slump this week and fell below $130 for the first time since July 2010 yesterday. The price of ore with 62 percent iron content delivered to the Chinese port of Tianjin declined 3.3 percent to $127.40 a metric ton, its 13th-consecutive drop, according to The Steel Index Ltd.
The cash price fell $10.20 yesterday, or 7.2 percent, its biggest slump since Aug. 20, 2009.
The Chinese economy grew 9.1 percent during the third quarter from a year earlier, the slowest pace since 2009. Vale sold about 45 percent of its iron-ore and pellets to Chinese customers during the third quarter, or about 35 million metric tons, it said yesterday. Europe represented 20 percent of the company’s shipments.
Vale gained 99 centavos, or 2.5 percent, to 40.73 reais in Sao Paulo yesterday. The stock has declined about 16 percent this year, compared with an 18 percent for Brazil’s benchmark Bovespa Index.
(sourced Bloomberg)
Reliance Steel's Q3 profit up, but sees Q4 lower
Thu Oct 27, 2011
* Q3 profit $1.13/shr vs year-ago 65 cents/shr
* Sees Q4 EPS 70-80 cents v analyst view of 88 cents
Oct 27 (Reuters) - Metals processor Reliance Steel & Aluminum Co's third-quarter profit rose on strong demand, but it said the fourth quarter will be lower than expected because of volatile metal prices and lower sales.
Net earnings were $84.9 million, or $1.13 per share, compared with $48.7 million, or 65 cents per share, in the same quarter of 2010, the Los Angeles-based company said on Thursday.
Reliance Steel, which buys metal from manufacturers and processes it for specific industry needs, said sales rose 29 percent to $2.14 billion.
Looking ahead, the company said it estimates earnings for the fourth quarter will be in the range of 70 cents to 80 cents per share. Analysts currently expect 88 cents per share, according to Thomson Reuters I/B/E/S.
(sourced Reuters)
* Q3 profit $1.13/shr vs year-ago 65 cents/shr
* Sees Q4 EPS 70-80 cents v analyst view of 88 cents
Oct 27 (Reuters) - Metals processor Reliance Steel & Aluminum Co's third-quarter profit rose on strong demand, but it said the fourth quarter will be lower than expected because of volatile metal prices and lower sales.
Net earnings were $84.9 million, or $1.13 per share, compared with $48.7 million, or 65 cents per share, in the same quarter of 2010, the Los Angeles-based company said on Thursday.
Reliance Steel, which buys metal from manufacturers and processes it for specific industry needs, said sales rose 29 percent to $2.14 billion.
Looking ahead, the company said it estimates earnings for the fourth quarter will be in the range of 70 cents to 80 cents per share. Analysts currently expect 88 cents per share, according to Thomson Reuters I/B/E/S.
(sourced Reuters)
Severstal’s crude steel output continues to increase in Q3
Thu,27 October 2011
Russian steelmaker Severstal has announced its operational results for the third quarter of 2011. Accordingly, Severstal's crude steel production increased by four percent quarter on quarter to 4.01 million mt in the third quarter.
While Severstal's Russian Steel division reported a 17 percent increase in rolled steel production in the given period, Severstal North America posted a 31 percent increase, both compared to the previous quarter. On the other hand, during the third quarter the mining division of the company, Severstal Resources, increased its iron ore production by 10 percent quarter on quarter to 4.12 million mt.
As regards intercompany sales, Severstal stated that in the third quarter coal sales decreased by two percent to 1.70 million mt, iron ore sales increased by 38 percent to 1.83 million mt and rolled product sales increased by 21 percent to 3.29 million mt, all compared to the previous quarter.
Tags: iron ore , crude steel , coking coal , USA , Russia , Severstal , raw mat , flats , CIS , North America , steelmaking , production
sourced: Steel Orbis
Russian steelmaker Severstal has announced its operational results for the third quarter of 2011. Accordingly, Severstal's crude steel production increased by four percent quarter on quarter to 4.01 million mt in the third quarter.
While Severstal's Russian Steel division reported a 17 percent increase in rolled steel production in the given period, Severstal North America posted a 31 percent increase, both compared to the previous quarter. On the other hand, during the third quarter the mining division of the company, Severstal Resources, increased its iron ore production by 10 percent quarter on quarter to 4.12 million mt.
As regards intercompany sales, Severstal stated that in the third quarter coal sales decreased by two percent to 1.70 million mt, iron ore sales increased by 38 percent to 1.83 million mt and rolled product sales increased by 21 percent to 3.29 million mt, all compared to the previous quarter.
Tags: iron ore , crude steel , coking coal , USA , Russia , Severstal , raw mat , flats , CIS , North America , steelmaking , production
sourced: Steel Orbis
Wednesday, October 26, 2011
Atlas Iron’s iron shipments in Q3 unchanged on quarterly basis
Wed, 26 October 2011
Australian iron ore miner Atlas Iron Limited has announced that in the third quarter ended on September 30, 2011, it mined and shipped 1.46 million wet metric tons (wmt) of direct shipping ore (DSO), unchanged compared to the previous quarter.
Atlas had $373 million cash in hand as of September 30, 2011, slightly up from $365 million at the end of the previous quarter.
According to the Atlas statement, "As noted by other iron ore producers and in media coverage, the iron ore market has softened during October 2011 due to reduced Chinese steel demand and uncertainty on Europe's financial position."
Atlas is on target to export 1.5 million wmt in the December quarter.
Tags: iron ore , Australia , Atlas , raw mat , Oceania , mining , production
[source steel orbis]
Australian iron ore miner Atlas Iron Limited has announced that in the third quarter ended on September 30, 2011, it mined and shipped 1.46 million wet metric tons (wmt) of direct shipping ore (DSO), unchanged compared to the previous quarter.
Atlas had $373 million cash in hand as of September 30, 2011, slightly up from $365 million at the end of the previous quarter.
According to the Atlas statement, "As noted by other iron ore producers and in media coverage, the iron ore market has softened during October 2011 due to reduced Chinese steel demand and uncertainty on Europe's financial position."
Atlas is on target to export 1.5 million wmt in the December quarter.
Tags: iron ore , Australia , Atlas , raw mat , Oceania , mining , production
[source steel orbis]
Thursday, October 20, 2011
Labour strife hits Anglo’s South African thermal coal output
By Martin Creamer, Miningweekly
20th October 2011
Johannesburg (miningweekly.com) – Industrial action and geological constraints hit diversified Anglo American’s South African thermal coal production in the third quarter (Q3) of this year.
Anglo’s non-Eskom Q3 2011 production was down 11% at 5 198 000 t compared with 5 813 000 t in the corresponding period of last year, although export was up 7% to 4 605 000 t over Q3 2010, and up 43% quarter-on-quarter.
Supply to the State-owned Eskom power utility was down 16% at 8 752 000 t, compared with 10 431 000 t in Q3 2010.
Thermal output was up 18% in Colombia and up 17% in Australia.
South African thermal coal export prices were higher than in Q3 2010.
London analyst Liberum Capital notes that rival Xstrata received a better price than Anglo for its Australian thermal coal – $111/t by Xstrata compared with Anglo’s $98/t – and that Anglo got a better price than Xstrata in South Africa – $115/t compared with Xstrata’s $105/t.
Anglo American Thermal Coal’s Zibula project, which is expected to reach commercial production in early 2012, partly offset South Africa’s lower performance.
South Africa’s production of metallurgical coal was also down 32% to 76 000 t, while Anglo’s Australian opencast metallurgical coal operations were 24% up.
However, longwall moves at Australia’s underground metallurgical coal operations saw Australia’s total metallurgical coal output fall 4% to four-million tons.
COPPER DOWN
Anglo American’s copper production decreased by 9% to 139 900 t owing mainly to lower grades at Collahuasi, Los Bronces and Mantos Blancos, and weather interruptions at Collahuasi.
This was partially offset by higher production at El Soldado, which benefited from higher ore grades following recent mine development.
The Los Bronces expansion project remains on schedule for first production in Q4 2011.
At Collahuasi, commissioning of the first phase of the expansion project is under way to increase sulphide processing capacity to 150 000 t/d, an annual average production lift of 19 000 t/y of copper over the estimated life of the mine.
Chile’s State-owned copper-mining company Codelco has put a financing facility in place for its option to take up 49% of Anglo American Sur, which includes Los Bronces, El Soldado and the Chagres smelter in Chile.
Liberum says that the market is waiting for confirmation of how much Anglo will receive from Codelco and says that anything less than the $6.75-billion will be a bad outcome for Anglo.
It forecasts that Anglo’s earnings per share will fall 7.3% in 2012 and 8.6% in 2013 on Codelco’s exercising of the option.
Anglo’s copper equivalent growth to 2015 will also fall from 46% to 40%.
Liberum rates Anglo’s Q3 report as marginally the weakest of the majors that have reported so far, which include BHP Billiton and Xstrata.
IRON-ORE
Iron-ore production increased by 3% to 12.2-million tons, owing to increased performance from Kumba’s Sishen mine in South Africa’s Northern Cape province, where the commissioning of Kolomela remains on track to produce up to five-million tons a year in 2012, and nine-million tons a year in 2013.
Export sales volumes from Sishen rose 11% to 9.2-million tons and South African domestic sales volumes decreased 29% to 1.5-million tons owing to reduced offtake from ArcelorMittal South Africa.
In Brazil, record monthly production of 419 000 t was achieved at Amapá in September and civil works at the beneficiation plant and pipeline at the Minas-Rio iron-ore project are progressing, with the first ore shipment due in the second half of 2013.
20th October 2011
Johannesburg (miningweekly.com) – Industrial action and geological constraints hit diversified Anglo American’s South African thermal coal production in the third quarter (Q3) of this year.
Anglo’s non-Eskom Q3 2011 production was down 11% at 5 198 000 t compared with 5 813 000 t in the corresponding period of last year, although export was up 7% to 4 605 000 t over Q3 2010, and up 43% quarter-on-quarter.
Supply to the State-owned Eskom power utility was down 16% at 8 752 000 t, compared with 10 431 000 t in Q3 2010.
Thermal output was up 18% in Colombia and up 17% in Australia.
South African thermal coal export prices were higher than in Q3 2010.
London analyst Liberum Capital notes that rival Xstrata received a better price than Anglo for its Australian thermal coal – $111/t by Xstrata compared with Anglo’s $98/t – and that Anglo got a better price than Xstrata in South Africa – $115/t compared with Xstrata’s $105/t.
Anglo American Thermal Coal’s Zibula project, which is expected to reach commercial production in early 2012, partly offset South Africa’s lower performance.
South Africa’s production of metallurgical coal was also down 32% to 76 000 t, while Anglo’s Australian opencast metallurgical coal operations were 24% up.
However, longwall moves at Australia’s underground metallurgical coal operations saw Australia’s total metallurgical coal output fall 4% to four-million tons.
COPPER DOWN
Anglo American’s copper production decreased by 9% to 139 900 t owing mainly to lower grades at Collahuasi, Los Bronces and Mantos Blancos, and weather interruptions at Collahuasi.
This was partially offset by higher production at El Soldado, which benefited from higher ore grades following recent mine development.
The Los Bronces expansion project remains on schedule for first production in Q4 2011.
At Collahuasi, commissioning of the first phase of the expansion project is under way to increase sulphide processing capacity to 150 000 t/d, an annual average production lift of 19 000 t/y of copper over the estimated life of the mine.
Chile’s State-owned copper-mining company Codelco has put a financing facility in place for its option to take up 49% of Anglo American Sur, which includes Los Bronces, El Soldado and the Chagres smelter in Chile.
Liberum says that the market is waiting for confirmation of how much Anglo will receive from Codelco and says that anything less than the $6.75-billion will be a bad outcome for Anglo.
It forecasts that Anglo’s earnings per share will fall 7.3% in 2012 and 8.6% in 2013 on Codelco’s exercising of the option.
Anglo’s copper equivalent growth to 2015 will also fall from 46% to 40%.
Liberum rates Anglo’s Q3 report as marginally the weakest of the majors that have reported so far, which include BHP Billiton and Xstrata.
IRON-ORE
Iron-ore production increased by 3% to 12.2-million tons, owing to increased performance from Kumba’s Sishen mine in South Africa’s Northern Cape province, where the commissioning of Kolomela remains on track to produce up to five-million tons a year in 2012, and nine-million tons a year in 2013.
Export sales volumes from Sishen rose 11% to 9.2-million tons and South African domestic sales volumes decreased 29% to 1.5-million tons owing to reduced offtake from ArcelorMittal South Africa.
In Brazil, record monthly production of 419 000 t was achieved at Amapá in September and civil works at the beneficiation plant and pipeline at the Minas-Rio iron-ore project are progressing, with the first ore shipment due in the second half of 2013.
Tuesday, October 18, 2011
Xstrata’s thermal coal production up 13 percent in Q3
Tuesday, 18 October 2011
On October 18, Australian coal producer Xstrata announced its production results for the third quarter of 2011. Accordingly, Xstrata's total consolidated coal production in the given quarter rose by 1.7 million mt compared to the corresponding quarter of 2010 to 23.6 million mt, hitting a quarterly production record. The Australian company's thermal production in the third quarter this year, including semi-soft, was 13 percent or 1.6 million mt higher than the same period in 2010, mainly due to the successful commencement of operations at the Mangoola open-cut mine ahead of schedule in February 2011.
Xstrata posted a 26 percent increase in coking coal production in the third quarter of the year, primarily due to full production from the Tahmoor underground mine in New South Wales compared to the same period last year when industrial action significantly impacted production.
Meanwhile, Xstrata's total nickel production in the third quarter of 2011 increased to 26,738 mt, 15 percent higher than the same period last year. This increase was driven by the successful ramp-up of the Falcondo ferronickel complex in the Dominican Republic to exceed the planned annualized run-rate of 14,000 mt of nickel in ferronickel, 50 percentof its installed capacity. Falcondo contributed 3,708 mt in the third quarter, six percent above the planned run-rate and representing an annualized run-rate of close to 15,000 mt of nickel in ferronickel.
In response to weaker market conditions, scheduled maintenance programs at the furnaces during the high-electricity-tariff South African winter were extended, resulting in reduced operating capacity utilization of 52 percent. Consequently, ferrochrome production was 18 percent lower in the third quarter of 2011 compared to the same period in 2010.
According to the statement, Xstrata's base metal and coal operations remain on track to deliver a stronger second half performance compared to the first half of 2011.
Tags: coking coal , raw mat , Australia , Oceania , production , mining , Xstrata
On October 18, Australian coal producer Xstrata announced its production results for the third quarter of 2011. Accordingly, Xstrata's total consolidated coal production in the given quarter rose by 1.7 million mt compared to the corresponding quarter of 2010 to 23.6 million mt, hitting a quarterly production record. The Australian company's thermal production in the third quarter this year, including semi-soft, was 13 percent or 1.6 million mt higher than the same period in 2010, mainly due to the successful commencement of operations at the Mangoola open-cut mine ahead of schedule in February 2011.
Xstrata posted a 26 percent increase in coking coal production in the third quarter of the year, primarily due to full production from the Tahmoor underground mine in New South Wales compared to the same period last year when industrial action significantly impacted production.
Meanwhile, Xstrata's total nickel production in the third quarter of 2011 increased to 26,738 mt, 15 percent higher than the same period last year. This increase was driven by the successful ramp-up of the Falcondo ferronickel complex in the Dominican Republic to exceed the planned annualized run-rate of 14,000 mt of nickel in ferronickel, 50 percentof its installed capacity. Falcondo contributed 3,708 mt in the third quarter, six percent above the planned run-rate and representing an annualized run-rate of close to 15,000 mt of nickel in ferronickel.
In response to weaker market conditions, scheduled maintenance programs at the furnaces during the high-electricity-tariff South African winter were extended, resulting in reduced operating capacity utilization of 52 percent. Consequently, ferrochrome production was 18 percent lower in the third quarter of 2011 compared to the same period in 2010.
According to the statement, Xstrata's base metal and coal operations remain on track to deliver a stronger second half performance compared to the first half of 2011.
Tags: coking coal , raw mat , Australia , Oceania , production , mining , Xstrata
Tuesday, February 15, 2011
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
Monday, February 7, 2011
Uttam Galva Steels Q3 net down by 41pct
Monday, 07 Feb 2011
Uttam Galva Steels a producer of galvanized plain and cold rolled steel, has posted a decline of 41.39% in net profit to INR 101.10 million for the quarter ended December 31st 2010 as compared to INR 172.50 million for the quarter ended December 31st 2009. The company’s net sales has decreased marginally by 4.76% from INR 10, 916.80 million for the quarter ended December 31st 2009 to INR 10,396.30 million for the quarter ended December 31st 2010, a rise of 9.94%.(sourced:IRIS)
Uttam Galva Steels a producer of galvanized plain and cold rolled steel, has posted a decline of 41.39% in net profit to INR 101.10 million for the quarter ended December 31st 2010 as compared to INR 172.50 million for the quarter ended December 31st 2009. The company’s net sales has decreased marginally by 4.76% from INR 10, 916.80 million for the quarter ended December 31st 2009 to INR 10,396.30 million for the quarter ended December 31st 2010, a rise of 9.94%.(sourced:IRIS)
Monday, January 31, 2011
Sunflag Iron and Steel Company Q3 profit down
Monday, 31 Jan 2011
Sunflag Iron & Steel Company Ltd has announced the Financial Results for the Quarter ended December 31st 2010.
The company has posted net sales / income from operations of INR 375.16 crores for quarter ended December 31st 2010 against INR 359.55 crores for the quarter ended on December 31st 2009.
The Net Profit / (Loss) was at INR 12.99 crores for the quarter ended December 31st 2010 against INR 29.29 crores for the quarter ended on December 31st 2009.(sourced:Equity Bulls)
Sunflag Iron & Steel Company Ltd has announced the Financial Results for the Quarter ended December 31st 2010.
The company has posted net sales / income from operations of INR 375.16 crores for quarter ended December 31st 2010 against INR 359.55 crores for the quarter ended on December 31st 2009.
The Net Profit / (Loss) was at INR 12.99 crores for the quarter ended December 31st 2010 against INR 29.29 crores for the quarter ended on December 31st 2009.(sourced:Equity Bulls)
Friday, January 28, 2011
JSW Steel stock hits 52-week low
Friday, 28 Jan 2011
Shares of JSW Steel fell more than 5 percent to a 52-week low as institutions were unwinding positions after the company reported weak Q3 financial results for the December quarter.
JSW Steel stock slipped another 5 percent on Thursday soon after it announced a 32 percent drop in its net profit.
According to analysts, higher coking coal and iron ore costs continue to threaten profitability. At 10.41 a.m., shares of the company were down 4.48 percent at 922.30 rupees.
Shares of JSW Steel fell more than 5 percent to a 52-week low as institutions were unwinding positions after the company reported weak Q3 financial results for the December quarter.
JSW Steel stock slipped another 5 percent on Thursday soon after it announced a 32 percent drop in its net profit.
According to analysts, higher coking coal and iron ore costs continue to threaten profitability. At 10.41 a.m., shares of the company were down 4.48 percent at 922.30 rupees.
Nippon Steel, JFE Cut Profit Forecasts on Coal Cost
Friday - Jan 28, 2011
By Masumi Suga and Yasumasa Song, Reuters
Net income at Nippon Steel will be about 95 billion yen ($1.15 billion) for the financial year ending March 31, missing its Oct. 27 estimate of 130 billion yen, the Tokyo-based company said today in a statement. JFE reduced its full-year profit forecast by 36 percent to 70 billion yen.
Coking coal prices may rise as much as 78 percent next quarter on disruptions from flooding in Australia, the Bank of America Merrill Lynch said. Japanese steelmakers, which rely on Australian imports for about 60 percent of their coking coal, are seeking alternative supplies from North America and Russia. Iron ore prices have more than doubled in the past two years.
“In addition to rising raw material prices, tightening coking coal supplies due to heavy rains in Australia pushes up costs,” Yoshio Ishikawa, executive vice president, told reporters today in Tokyo.
Third-quarter profit rose to 33.4 billion yen from 25.9 billion yen a year earlier, Nippon Steel said in the statement. JFE Holdings reported a 32 percent decline in quarterly profit to 18.5 billion yen, according to Bloomberg calculation based on the nine-month result released today by the Tokyo-based company.
JFE shares dropped 3.3 percent to 2,643 yen, the biggest decline since Aug. 31 as of the 3 p.m. trading close on the Tokyo Stock Exchange. Nippon Steel fell 2.1 percent to 285 yen.
Weak Prices
Nippon Steel expects the average price of steel will remain little changed at about 81,000 a metric ton in the current quarter, after a 5.8 percent decline from the previous quarter ended Dec. 31, according to its statement. The average price JFE got for its steel fell 2.8 percent to 79,300 yen in the third quarter from the previous three months and is expected to be about 79,000 yen this quarter.
While market prices are rising, the company’s contracted product prices little reflect this gain, Nippon Steel Executive Vice President Shinichi Taniguchi said today. The company plans to raise prices in April, he said, without giving details.
China’s domestic prices for hot-rolled coil, a benchmark steel product, were unchanged at 4,868 yuan a ton today, according to Beijing Antaike Information Development Co. They have risen about 25 percent in the past six months.
Posco, South Korea’s largest steelmaker, this month reported a worse-than-expected drop in quarterly profit after raw material costs gained and demand from builders and home- appliances makers waned.
Australian free-on-board coking coal prices may increase to $400 a metric ton for three-month contracts starting April 1, from $225 a ton this quarter, Merrill Lynch analysts led by Sydney-based Alex Tonks said in a report dated Jan. 25. This compares with the bank’s Jan. 11 forecast of $330 a ton for the second quarter.
Still, the weather’s “impact on coking coal won’t likely continue,” once the season changes, and the short term cut in steel output caused by the flooding will help steelmakers boost prices, according to Shinya Yamada, an analyst at Credit Suisse Securities Japan Ltd.
Flooding has inundated about three-quarters of Queensland, shutting mines, damaging crops and prompting BHP Billiton Ltd. and Rio Tinto Group to declare force majeure, a legal clause that allows producers to miss deliveries. The region is the world’s largest exporter of seaborne coal.
Sumitomo Metal Industries Ltd. and Kobe Steel Ltd., Japan’s third- and fourth-largest steelmakers, are scheduled to report nine-month results and full-year outlook on Feb. 3. (sourced:Bloomberg)
By Masumi Suga and Yasumasa Song, Reuters
Nippon Steel Corp. and JFE Holdings Inc., Japan’s two largest mills, cut their full-year profit forecasts after prices fell and record rains and floods in Australia pushed up the cost of steelmaking coal.
Net income at Nippon Steel will be about 95 billion yen ($1.15 billion) for the financial year ending March 31, missing its Oct. 27 estimate of 130 billion yen, the Tokyo-based company said today in a statement. JFE reduced its full-year profit forecast by 36 percent to 70 billion yen.
Coking coal prices may rise as much as 78 percent next quarter on disruptions from flooding in Australia, the Bank of America Merrill Lynch said. Japanese steelmakers, which rely on Australian imports for about 60 percent of their coking coal, are seeking alternative supplies from North America and Russia. Iron ore prices have more than doubled in the past two years.
“In addition to rising raw material prices, tightening coking coal supplies due to heavy rains in Australia pushes up costs,” Yoshio Ishikawa, executive vice president, told reporters today in Tokyo.
Third-quarter profit rose to 33.4 billion yen from 25.9 billion yen a year earlier, Nippon Steel said in the statement. JFE Holdings reported a 32 percent decline in quarterly profit to 18.5 billion yen, according to Bloomberg calculation based on the nine-month result released today by the Tokyo-based company.
JFE shares dropped 3.3 percent to 2,643 yen, the biggest decline since Aug. 31 as of the 3 p.m. trading close on the Tokyo Stock Exchange. Nippon Steel fell 2.1 percent to 285 yen.
Weak Prices
Nippon Steel expects the average price of steel will remain little changed at about 81,000 a metric ton in the current quarter, after a 5.8 percent decline from the previous quarter ended Dec. 31, according to its statement. The average price JFE got for its steel fell 2.8 percent to 79,300 yen in the third quarter from the previous three months and is expected to be about 79,000 yen this quarter.
While market prices are rising, the company’s contracted product prices little reflect this gain, Nippon Steel Executive Vice President Shinichi Taniguchi said today. The company plans to raise prices in April, he said, without giving details.
China’s domestic prices for hot-rolled coil, a benchmark steel product, were unchanged at 4,868 yuan a ton today, according to Beijing Antaike Information Development Co. They have risen about 25 percent in the past six months.
Posco, South Korea’s largest steelmaker, this month reported a worse-than-expected drop in quarterly profit after raw material costs gained and demand from builders and home- appliances makers waned.
Australian free-on-board coking coal prices may increase to $400 a metric ton for three-month contracts starting April 1, from $225 a ton this quarter, Merrill Lynch analysts led by Sydney-based Alex Tonks said in a report dated Jan. 25. This compares with the bank’s Jan. 11 forecast of $330 a ton for the second quarter.
Still, the weather’s “impact on coking coal won’t likely continue,” once the season changes, and the short term cut in steel output caused by the flooding will help steelmakers boost prices, according to Shinya Yamada, an analyst at Credit Suisse Securities Japan Ltd.
Flooding has inundated about three-quarters of Queensland, shutting mines, damaging crops and prompting BHP Billiton Ltd. and Rio Tinto Group to declare force majeure, a legal clause that allows producers to miss deliveries. The region is the world’s largest exporter of seaborne coal.
Sumitomo Metal Industries Ltd. and Kobe Steel Ltd., Japan’s third- and fourth-largest steelmakers, are scheduled to report nine-month results and full-year outlook on Feb. 3. (sourced:Bloomberg)
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