Saturday, Feb19, 2011
Offer prices of cold rolled coil from Taiwanese, Korean and Chinese mills have risen sharply by $50-70/tonne compared to end-January levels. Offers from Taiwan, ahead of the new offer prices from China Steel Corp, have risen to $870/t fob for 1mm base full-hard CRC, for annealed base CRC at $890/t fob and for hot-dip galvanized $1,050/t fob. Read More on this…
Showing posts with label Satuday Feb19 2011. Show all posts
Showing posts with label Satuday Feb19 2011. Show all posts
Saturday, February 19, 2011
ASIC wins FMG appeal
Saturday, 19 Feb 2011
The West Australian reported that the Federal Court agreed with the Australian Securities and Investments Commission's argument that Justice John Gilmour erred in finding Mr Forrest and his Fortescue Metals Group did not act dishonestly when they announced they had signed Chinese partners to build their Pilbara project.
Billionaire Mr Andrew Forrest faces being banned from running the company he turned into the country’s third biggest iron ore producer after the nation's corporate watchdog won its Federal Court appeal.
ASIC successfully argued that Mr Forrest deliberately engaged in misleading and deceptive conduct by making false, misleading and exaggerated statements to the ASX and the media about the nature of framework agreements signed in 2004 with three Chinese companies.
The agreements concerned the construction and financing of a mine, railway and port in the Pilbara. ASIC argued that Fortescue and Mr Forrest falsely portrayed the agreements as binding.
A judge had dismissed the watchdog’s claims in December 2009 following a trial in the Federal Court. But ASIC appealed against the finding in February last year, arguing the case had raised important issues that needed to be heard by an appeals court.
The six day appeal was heard in November last year before the Full Bench of the Federal Court, comprising Chief Justice Patrick Keane, Justice Arthur Emmett and Justice Ray Finkelstein.
Mr Forrest was not in court to hear the decision, which followed an appeal hearing in November after Justice Gilmour's 2009 judgment.
FMG and Mr Forrest have always denied any wrongdoing in the case.
(Sourced:thewest.com.au)
Macarthur Coal cuts output guidance
Saturday, 19 Feb 2011
Macarthur Coal Limited announced a reduction in its 2011 financial year sales production target as a result of extended unseasonal rainfall impacting on production.
The Company’s saleable production target for the 2011 financial year was 5.0 million tonne. Macarthur Coal is decreasing its full year sales forecast to be in the range of 4.1 million tonne to 4.3 million tonne.
On December 3rd 2010, Macarthur Coal declared force majeure to customers as a result of unseasonal heavy rain in the Bowen Basin. Macarthur Coal advises that the declaration of force majeure with customers remains in place. Recovery continues however a return to full production levels has been hampered by additional rainfall received from cyclones Anthony and Yasi.
Ms Nicole Hollows CEO of Macarthur Coal said that “Our operations at both Coppabella and Moorvale have been disrupted by unseasonal heavy rains over the past three months; continuation of excessive wet weather has caused further delays to production through to February. Although we are anticipating more rainfall, should it remain at historical averages we are confident of progressively returning to normal production over the next few weeks. Water diversion structures, pit protection measures, dam levy work and onsite water management initiatives completed prior to the wet season have helped each site manage the impact of unseasonal rainfall on the operations and the environment.”
Macarthur Coal Limited announced a reduction in its 2011 financial year sales production target as a result of extended unseasonal rainfall impacting on production.
The Company’s saleable production target for the 2011 financial year was 5.0 million tonne. Macarthur Coal is decreasing its full year sales forecast to be in the range of 4.1 million tonne to 4.3 million tonne.
On December 3rd 2010, Macarthur Coal declared force majeure to customers as a result of unseasonal heavy rain in the Bowen Basin. Macarthur Coal advises that the declaration of force majeure with customers remains in place. Recovery continues however a return to full production levels has been hampered by additional rainfall received from cyclones Anthony and Yasi.
Ms Nicole Hollows CEO of Macarthur Coal said that “Our operations at both Coppabella and Moorvale have been disrupted by unseasonal heavy rains over the past three months; continuation of excessive wet weather has caused further delays to production through to February. Although we are anticipating more rainfall, should it remain at historical averages we are confident of progressively returning to normal production over the next few weeks. Water diversion structures, pit protection measures, dam levy work and onsite water management initiatives completed prior to the wet season have helped each site manage the impact of unseasonal rainfall on the operations and the environment.”
Chinese buyers expecting lower iron ore prices
Saturday, 19 Feb 2011
(Sourced from www.theaustralian.com.au)
Tags:Wuhan Steel Group, Japan, Nippon Steel Corp, Spot iron ore prices, Spot prices for 63.5% Indian fines, raw material,
Chinese mills and traders, as well as Australian miners expect iron ore prices to fall by at least 10% later in the year as the world biggest steelmaking nation steps up the overhaul of the sector as part of the country new Five Year Plan.
China largest steelmaker, Baosteel lifted its prices this week for the third month in a row even as it continued its acquisition and expansion binge, but authorities signaled that overall output growth in the sector was planned to slow this year. Another top-five Chinese steelmaker, Wuhan Steel and Japan Nippon Steel have also increased their prices in recent days.
Spot prices for high-grade Indian ore hit USD 200 per tonne this week and have already risen more than 12% this year after jumping over 40% last year. The higher prices will feed into the next quarterly contracts which use a weighted average from the previous quarter.
As well as higher iron ore prices, steelmakers have faced higher coking coal costs because of flooding in Queensland. Ironically higher steel prices will feed into Australian inflation as we buy back finished steel products from China, Japan and South Korea. But traders and mill staff predict that while high iron ore prices will continue for several months and they will fall back in the second half of the year.
China largest steelmaker, Baosteel lifted its prices this week for the third month in a row even as it continued its acquisition and expansion binge, but authorities signaled that overall output growth in the sector was planned to slow this year. Another top-five Chinese steelmaker, Wuhan Steel and Japan Nippon Steel have also increased their prices in recent days.
Spot prices for high-grade Indian ore hit USD 200 per tonne this week and have already risen more than 12% this year after jumping over 40% last year. The higher prices will feed into the next quarterly contracts which use a weighted average from the previous quarter.
As well as higher iron ore prices, steelmakers have faced higher coking coal costs because of flooding in Queensland. Ironically higher steel prices will feed into Australian inflation as we buy back finished steel products from China, Japan and South Korea. But traders and mill staff predict that while high iron ore prices will continue for several months and they will fall back in the second half of the year.
(Sourced from www.theaustralian.com.au)
Tags:Wuhan Steel Group, Japan, Nippon Steel Corp, Spot iron ore prices, Spot prices for 63.5% Indian fines, raw material,
Vale starts trial runs of iron ore palletizing plant in Oman
Saturday, 19 Feb 2011
It is reported that Brazilian miner Vale SA has started test production at a new USD 1.356 billion iron ore palletizing complex in Oman.
Commercial production at the first pellet plant now being started up is due in March and the first product shipment is expected in May.
Vale's Oman industrial complex includes two pelletizing plants each with a capacity of 4.5 million tonnes a year of direct reduction pellets for use in steelmaking, as well as a distribution center with capacity to handle 40 million tonnes a year of pellets and a deep water bulk jetty, which will be used exclusively by Vale.
The company has also signed a long term accord with the Oman Shipping Company for construction of four 400,000 tonne capacity iron ore carriers for Vale's exclusive use.
It is reported that Brazilian miner Vale SA has started test production at a new USD 1.356 billion iron ore palletizing complex in Oman.
Commercial production at the first pellet plant now being started up is due in March and the first product shipment is expected in May.
Vale's Oman industrial complex includes two pelletizing plants each with a capacity of 4.5 million tonnes a year of direct reduction pellets for use in steelmaking, as well as a distribution center with capacity to handle 40 million tonnes a year of pellets and a deep water bulk jetty, which will be used exclusively by Vale.
The company has also signed a long term accord with the Oman Shipping Company for construction of four 400,000 tonne capacity iron ore carriers for Vale's exclusive use.
Egypt unrest hit steel prices - Metalloinvest
Saturday, 19 Feb 2011
(Sourced from Reuters)
Reuters reported that unrest in Egypt has hit construction steel prices with spot rebar in Saudi Arabia's Jeddah now at USD 640 per tonne to USD 650 per tonne as Black Sea mills seek new markets away from the turmoil.
Mr Shukhrat Nishanov GD of Hamriyah said that “It is influencing the market. If that market was traditionally supplied by our colleagues in Turkey and Ukraine, well, they can't sell there so they are going to the Saudi market and this is disrupting our business."
Mr Nishanov said that Metalloinvest's Hamriyah, the only Russian owned steel plant in the United Arab Emirates sold its January rebar production for USD 700 per tonne roughly 8% above the current spot range.
He said that the company, which is also Russia's largest iron miner, opened its steel plant in the UAE last year to tap into the Middle Eastern construction boom. It currently produces 80,000 tonnes of rebar per month or 1 million tonnes per year. This can be ramped up slightly to about 1.2 million tonnes if demand increases.
Metalloinvest, controlled by billionaire Mr Alisher Usmanov may also add a second mill later in the decade, though it has yet to take a final decision. It already operates two major steel plants in Russia.
Mr Nishanov said that Hamriyah does not sell any steel directly to Egyptian buyers. He said “We export 30% to Saudi Arabia, 20% to Iraq and our trading partners sell to other buyers in the Persian Gulf and 10% to 15% is sold to local firms.”
He does not expect the Egyptian market to revive until there is more certainty about the country's future political course.
Mr Shukhrat Nishanov GD of Hamriyah said that “It is influencing the market. If that market was traditionally supplied by our colleagues in Turkey and Ukraine, well, they can't sell there so they are going to the Saudi market and this is disrupting our business."
Mr Nishanov said that Metalloinvest's Hamriyah, the only Russian owned steel plant in the United Arab Emirates sold its January rebar production for USD 700 per tonne roughly 8% above the current spot range.
He said that the company, which is also Russia's largest iron miner, opened its steel plant in the UAE last year to tap into the Middle Eastern construction boom. It currently produces 80,000 tonnes of rebar per month or 1 million tonnes per year. This can be ramped up slightly to about 1.2 million tonnes if demand increases.
Metalloinvest, controlled by billionaire Mr Alisher Usmanov may also add a second mill later in the decade, though it has yet to take a final decision. It already operates two major steel plants in Russia.
Mr Nishanov said that Hamriyah does not sell any steel directly to Egyptian buyers. He said “We export 30% to Saudi Arabia, 20% to Iraq and our trading partners sell to other buyers in the Persian Gulf and 10% to 15% is sold to local firms.”
He does not expect the Egyptian market to revive until there is more certainty about the country's future political course.
(Sourced from Reuters)
Russia imposes safeguard duty on imports of steel fasteners
Saturday, 19 Feb 2011
It is reported that Russia has imposed a USD 282.4 per tonne safeguard duty on imports of carbon steel fasteners for a period of three years.
The decision No 68 dated February 12 2011 becomes effective one month after its official publication.
The USD 282.4 per tonne duty will impact steel fasteners under the following HS Codes: 7318 15 810 0, 7318 15 890 0, 7318 15 900 9, 7318 16 910 9, 7318 16 990 0 and 7318 21 000 9.
(Sourced:SteelOrbis)
It is reported that Russia has imposed a USD 282.4 per tonne safeguard duty on imports of carbon steel fasteners for a period of three years.
The decision No 68 dated February 12 2011 becomes effective one month after its official publication.
The USD 282.4 per tonne duty will impact steel fasteners under the following HS Codes: 7318 15 810 0, 7318 15 890 0, 7318 15 900 9, 7318 16 910 9, 7318 16 990 0 and 7318 21 000 9.
(Sourced:SteelOrbis)
NLMK to build pelletizing plant at Stoilensky
Saturday, 19 Feb 2011
NLMK has approved the construction of a pelletizing plant at Stoilensky, its fully owned subsidiary with a capacity of 6 million tonnes of iron ore pellets per year.
The project will encompass the construction of the pelletizing plant and the development of a number of infrastructure facilities to supply raw materials for the production of high grade pellets. A 30% increase in iron ore output as compared to 2011 level at Stoilensky operating mine is planned to ensure the required raw material supplies for the pelletizing plant.
The project is part of the Group’s strategy targeted at strengthening vertical integration and is being executed as part of the third stage of NLMK Technical Upgrade Program. Construction is expected to be completed in 2014. The plant will be able to fully cover the Company pellet requirements as early as 2015, even considering the launch of the 3.4 million tonne Blast Furnace 7 at Novolipetsk, the main production facility of the Group located in Lipetsk.
The project will be jointly executed with Siemens VAI/Outotec, a German-Finnish consortium, responsible for supplying the required equipment and technologies, as well as rendering other construction-related services.
Investments into Stoilensky operating and infrastructure facilities over 2011 to 2014 will total some RUB 39 billion.
Starting from 2015, Stoilensky average annual output of saleable iron ore will be as follows:
1. Sintering ore - 2 million tonnes
2. Iron ore concentrate - 11 million tonnes
3. Iron ore pellets - 6 million tonnes
Ensuring NLMK 100% self sufficiency in iron ore raw materials.
During the Stoilensky pellet plant construction, supplies of iron ore pellets to Novolipetsk will be made under long term contracts between NLMK and Metalloinvest Holding.
Tags:Siemens VAI, Outotec,investment, iron ore concentrate, long term agreement, Metalloinvest Holding,
Japan China trade up by 30pct to exceed JPY 25 trillion in 2010
Saturday, 19 Feb 2011
According to the Japan External Trade Organization, trade between Japan and China increased 30% to a record USD 301.85 billion or about JPY 25.2 trillion in 2010.
Both exports and imports marked all time highs, and this was the first time that Japan's trade with any nation surpassed USD 300 billion.
Exports from Japan to China jumped 36% to USD 149.09 billion or JPY 12.4 trillion, with shipments of construction and mining machinery enjoying a 105% spike thanks to China's investment in large infrastructure projects. Exports of automobiles expanded 81%.
Imports rose by 25% to USD 152.75 billion or about JPY 12.7 trillion, with electronics, such as smart phones, other cell phones and LCD televisions, enjoying a 47% jump.
China accounted for a record 20.7% of Japan's total trade, up by 0.2 percentage points from 2009.
Given that export growth outpaced import gains, JETRO says the bilateral trade may swing to a surplus in Japan's favor this year.
(Sourced from Nikkei)
According to the Japan External Trade Organization, trade between Japan and China increased 30% to a record USD 301.85 billion or about JPY 25.2 trillion in 2010.
Both exports and imports marked all time highs, and this was the first time that Japan's trade with any nation surpassed USD 300 billion.
Exports from Japan to China jumped 36% to USD 149.09 billion or JPY 12.4 trillion, with shipments of construction and mining machinery enjoying a 105% spike thanks to China's investment in large infrastructure projects. Exports of automobiles expanded 81%.
Imports rose by 25% to USD 152.75 billion or about JPY 12.7 trillion, with electronics, such as smart phones, other cell phones and LCD televisions, enjoying a 47% jump.
China accounted for a record 20.7% of Japan's total trade, up by 0.2 percentage points from 2009.
Given that export growth outpaced import gains, JETRO says the bilateral trade may swing to a surplus in Japan's favor this year.
(Sourced from Nikkei)
Reliance Steel board announces quarterly cash dividend
Saturday, 19 Feb 2011
On February 16th 2011, the board of directors increased the regular quarterly cash dividend by 20%, to USD 0.12 per share from USD 0.10 per share. The board declared the 2011 first quarter cash dividend of USD 0.12 per share of common stock payable on March 25th 2011 to shareholders of record March 4th 2011.
The company has paid regular quarterly dividends for 51 consecutive years and has increased its dividend 16 times since its 1994 IPO.
TATA Steel expects steel prices to rise in near terms
Saturday, 19 Feb 2011
TATA Steel sees a sure in steel prices on surging prices of raw materials.
Mr B Muthuraman VC of TATA Steel said that global steel prices will likely rise in the near term, driven by both higher costs and a steady improvement in global demand.
He added that "It is difficult to predict steel prices, but the way raw material prices are rising, steel prices are bound to follow."
(Sourced:dowjones)
Nippon Steel Sumitomo merger to curb carbon credit demand
Saturday, 19 Feb 2011
(Sourced from www.reuters.com)
Tags:CERs, European market, Carbon traders, Kyoto credits
Reuters reported that the merger of Japan's two largest steelmakers will likely cut steel output at home as they look to expand offshore and will further curb demand for UN backed carbon credits beyond 2012.
Steelmakers in resource poor Japan have steadily become more efficient since the 1970s and now use 15% to 20% less energy to produce a tonne of steel than their counterparts in the United States, Germany, India or China. They are also well below self pledged emissions targets linked to the Kyoto Protocol, the UN's main climate change pact that sets targets for about 40 rich nations during the 2008-2012 first phase.
Japanese steel firms could have a competitive advantage by expanding in poorer nations since they will be more efficient and ahead on the emissions reduction curve against rivals. It could also drive greater efficiency in the industry.
Mr Masaki Mita, Japan representative for energy data and pricing service Argus Media, said that "A positive implication of the merger would be the chance they can make their advanced energy saving technology a global standard."
Nippon Steel Corporation and Sumitomo Metal Industries have likely achieved emission goals they set for themselves over the five years to March 2013, helping Japan meet its Kyoto obligations for its 2008-2012 phase.
Once the merger is completed in 2012, the combined firm will be the world's No 2 steel producer behind ArcelorMittal and is expected to lower their emissions further from the combined figure of about 60 million tonnes of CO2 equivalent per year now.
A Tokyo based carbon trader said that "The merger is set to be completed in 2012, so I don't see any big news that would affect demand for Kyoto credits right now. But in the longer term, changes in Japan's industrial structure mean there will be fewer buyers of carbon credits, and that will have an impact on the market."
Similar success by other firms in Japan's steel sector, the country's main CO2 emitter, has seen firms ceasing to buy Kyoto carbon credits, including CERs (certified emissions reductions).
Japan's steel sector as a whole has bought about 50 million CERs or 5% of the total estimated flow of CERs for Kyoto's five year first phase. The credits are generated from UN approved clean energy projects in developing countries.
Each CER represents one tonne of CO2 saved from being emitted, such as using wind power instead of coal to generate electricity. Based on current market prices in Europe, the 50 million credits bought by the steel sector are worth around EUR 570 million, showing how significant the sector is to the international market.
Carbon traders said that steel companies have considered selling their surplus CERs, but are waiting to see projected final emissions balances for 2008-2012.
That is partly because the goal the sector set for itself for 2020 looks easier to meet than the one for 2008-2012. S, Japan is developing an alternative to the U.N. market schemes to promote its energy saving technology such as those used by steelmakers, and can obtain carbon offset certificates via bilateral agreements with poorer countries. This means the steel sector might have another option even if it fails to meet its 2020 goal.
Unlike Japanese firms, ArcelorMittal has had little appetite for Kyoto credits, benefiting from having more than half of its steel production in non EU countries where carbon regulations are looser.
Carbon dioxide from burning fossil fuels is the main greenhouse gas that scientists say is heating up the planet. Growth in steel demand centers on emerging markets, which are the target for Nippon Steel and Sumitomo as well.
Mr Akihiro Sawa executive senior fellow at the 21st Century Public Policy Institute in Tokyo said that the two firms would come up with steps to cut their CO2 emissions worldwide by 10% to 20% below current levels. He added that "I don't think they have agreed to consider a merger in the context of global climate change. Their intention has been driven by rivals like ArcelorMittal and concerns about their purchasing power against resource firms. Having said that, I'm sure their agenda for merger talks will include a strategy to fight climate change."
In 1990, Japan's steel sector as a whole emitted just over 200 million tonnes of CO2. But a peak out in domestic output means the sector is well within the goal of 183 million tonnes a year on average for 2008-2012, which would be down 9 percent from the Kyoto Protocol's base year of 1990.
The steel sector has set its own target for 2020 based on CO2 per unit of output, which does not necessarily cap CO2 in contrast to its 2008-2012 goal. If the sector meets the Japanese government's crude steel output estimate of 119.7 million tonnes for 2020, up 9% from last year, its self pledged target is to cut CO2 by 5 million tonnes from business as usual levels of about 210 million tonnes by 2020.
Steelmakers in resource poor Japan have steadily become more efficient since the 1970s and now use 15% to 20% less energy to produce a tonne of steel than their counterparts in the United States, Germany, India or China. They are also well below self pledged emissions targets linked to the Kyoto Protocol, the UN's main climate change pact that sets targets for about 40 rich nations during the 2008-2012 first phase.
Japanese steel firms could have a competitive advantage by expanding in poorer nations since they will be more efficient and ahead on the emissions reduction curve against rivals. It could also drive greater efficiency in the industry.
Mr Masaki Mita, Japan representative for energy data and pricing service Argus Media, said that "A positive implication of the merger would be the chance they can make their advanced energy saving technology a global standard."
Nippon Steel Corporation and Sumitomo Metal Industries have likely achieved emission goals they set for themselves over the five years to March 2013, helping Japan meet its Kyoto obligations for its 2008-2012 phase.
Once the merger is completed in 2012, the combined firm will be the world's No 2 steel producer behind ArcelorMittal and is expected to lower their emissions further from the combined figure of about 60 million tonnes of CO2 equivalent per year now.
A Tokyo based carbon trader said that "The merger is set to be completed in 2012, so I don't see any big news that would affect demand for Kyoto credits right now. But in the longer term, changes in Japan's industrial structure mean there will be fewer buyers of carbon credits, and that will have an impact on the market."
Similar success by other firms in Japan's steel sector, the country's main CO2 emitter, has seen firms ceasing to buy Kyoto carbon credits, including CERs (certified emissions reductions).
Japan's steel sector as a whole has bought about 50 million CERs or 5% of the total estimated flow of CERs for Kyoto's five year first phase. The credits are generated from UN approved clean energy projects in developing countries.
Each CER represents one tonne of CO2 saved from being emitted, such as using wind power instead of coal to generate electricity. Based on current market prices in Europe, the 50 million credits bought by the steel sector are worth around EUR 570 million, showing how significant the sector is to the international market.
Carbon traders said that steel companies have considered selling their surplus CERs, but are waiting to see projected final emissions balances for 2008-2012.
That is partly because the goal the sector set for itself for 2020 looks easier to meet than the one for 2008-2012. S, Japan is developing an alternative to the U.N. market schemes to promote its energy saving technology such as those used by steelmakers, and can obtain carbon offset certificates via bilateral agreements with poorer countries. This means the steel sector might have another option even if it fails to meet its 2020 goal.
Unlike Japanese firms, ArcelorMittal has had little appetite for Kyoto credits, benefiting from having more than half of its steel production in non EU countries where carbon regulations are looser.
Carbon dioxide from burning fossil fuels is the main greenhouse gas that scientists say is heating up the planet. Growth in steel demand centers on emerging markets, which are the target for Nippon Steel and Sumitomo as well.
Mr Akihiro Sawa executive senior fellow at the 21st Century Public Policy Institute in Tokyo said that the two firms would come up with steps to cut their CO2 emissions worldwide by 10% to 20% below current levels. He added that "I don't think they have agreed to consider a merger in the context of global climate change. Their intention has been driven by rivals like ArcelorMittal and concerns about their purchasing power against resource firms. Having said that, I'm sure their agenda for merger talks will include a strategy to fight climate change."
In 1990, Japan's steel sector as a whole emitted just over 200 million tonnes of CO2. But a peak out in domestic output means the sector is well within the goal of 183 million tonnes a year on average for 2008-2012, which would be down 9 percent from the Kyoto Protocol's base year of 1990.
The steel sector has set its own target for 2020 based on CO2 per unit of output, which does not necessarily cap CO2 in contrast to its 2008-2012 goal. If the sector meets the Japanese government's crude steel output estimate of 119.7 million tonnes for 2020, up 9% from last year, its self pledged target is to cut CO2 by 5 million tonnes from business as usual levels of about 210 million tonnes by 2020.
(Sourced from www.reuters.com)
Tags:CERs, European market, Carbon traders, Kyoto credits
POSCO to increase cost cutting on ore and coal price surge
Saturday, 19 Feb 2011
POSCO the world’s third biggest steelmaker by output and its units raised their cost cutting target for this year by 20% to sustain profits amid rising iron ore and coal prices.
Mr Chung Jae Woong a spokesman of POSCO said that the group aims to cut overall costs by KRW 2.4 trillion (USD 2.2 billion) this year from a previous target of KRW 2 trillion in an effort to improve competitiveness.
Ms Kim Gyung Jung an analyst with Eugene Investment & Securities Co in Seoul said that “That’s part of POSCO’s efforts to sustain stable profits given that raw material costs are rising, while it’s not easy for them to pass on cost gains to customers.”
POSCO which underperformed the local benchmark stock index last year, in January reported a worse than expected drop in fourth quarter profit after raw material costs gained and demand from builders and home-appliance makers waned. Japan’s Nippon Steel Corp and Sumitomo Metal Industries Ltd said that they plan to combine to cut costs.
HSBC Holdings Plc said that iron ore prices almost doubled from the first quarter to the end of 2010, while coking-coal costs gained 38%. Coal has risen since floods disrupted mining in the northeast of Australia, the biggest exporter.
According to Credit Suisse Group AG on January 7, the price of iron ore will average 21% higher this year and may jump to a record should anticipated supply growth be curbed. Iron ore and coking coal are the two main ingredients for making steel.
(Sourced from Bloomberg)
Tags:steelmakers, steel mills, South Korean
TATA Steel expects to complete TCP sale by March - Mr Muthuraman
Saturday, 19 Feb 2011
It is reported that TATA Steel Limited expects to complete the sale of its Teesside plant in the United Kingdom by the end of March 2011.
Mr B Muthuraman VC of TATA Steel said that "The process is on and we should be able to complete it by March 31st 2011."
It may be noted that TATA Steel recently agreed to sell the Teesside Cast Products plant to Thailand's largest steel group Sahaviriya Steel Industries PLC in a deal valued at USD 500 million.
The plant was partially shut in February 2010 after four steel slab buyers pulled out of a joint 10 year contract.
(Sourced:Dowjones)
Metalico buys land at former Bethlehem Steel site to install shredder
Saturday, 19 Feb 2011
Metalico Inc, a leading regional scrap metal recycler in US, has purchased a portion of the former Bethlehem Steel/Mittal complex in Western New York, including the abandoned galvanizing mill, from Great Lakes Industrial Development LLC, a Buffalo based real estate investment group, as the site for a new shredder.
The 44 acre parcel, at the corner of Route 5 and Lake Avenue on the border of the Town of Hamburg and Blasdell, includes a 177,500 square feet building. Metalico plans to install a heavy duty 80104 Metal Shredder inside the building, which will still provide ample additional space for other recycling activity. The location is appropriately zoned for the company's contemplated use and approvals are in place for outdoor storage and processing of scrap metals.
The planned 80" by 104" scrap metal shredder will be powered with a 4,000 HP (2,984 kW) electric motor with an operating speed of 600 RPM, suitable for processing 100 tons to 120 tons per hour of shreddable scrap. The installation will include a new state of the art downstream separation system to maximize the recovery of valuable non ferrous products.
Metalico expects to produce 120,000 tons per year of high quality shredded steel scrap by combining feedstock generated from its own yards and material available for purchase in the region. The company looks to satisfy growing demand for shred from electric arc furnace mills, export markets and other consumers.
Metalico has been operating in Buffalo since 1998 and believes that the market is underserved for shredding capacity. At present more than 2/3 of shreddable scrap regularly leaves the area.
Mr Carlos E Agüero president & CEO of Metalico said “The Galvanizing Mill site is a perfect location for our expansion of services in Upstate New York. We expect the shredder will also draw feed from our other facilities, consistent with our strategy of penetrating geographically contiguous markets and benefiting from intercompany and operating synergies that are available through consolidation.”
Metalico Inc is a holding company with operations in two principal business segments: ferrous and non ferrous scrap metal recycling and fabrication of lead-based products. Metalico currently operates twenty six recycling facilities in New York, Pennsylvania, Ohio, West Virginia, New Jersey, Texas and Mississippi and four lead fabricating plants in Alabama, Illinois, and California.
(sourced:steelguru)
The 44 acre parcel, at the corner of Route 5 and Lake Avenue on the border of the Town of Hamburg and Blasdell, includes a 177,500 square feet building. Metalico plans to install a heavy duty 80104 Metal Shredder inside the building, which will still provide ample additional space for other recycling activity. The location is appropriately zoned for the company's contemplated use and approvals are in place for outdoor storage and processing of scrap metals.
The planned 80" by 104" scrap metal shredder will be powered with a 4,000 HP (2,984 kW) electric motor with an operating speed of 600 RPM, suitable for processing 100 tons to 120 tons per hour of shreddable scrap. The installation will include a new state of the art downstream separation system to maximize the recovery of valuable non ferrous products.
Metalico expects to produce 120,000 tons per year of high quality shredded steel scrap by combining feedstock generated from its own yards and material available for purchase in the region. The company looks to satisfy growing demand for shred from electric arc furnace mills, export markets and other consumers.
Metalico has been operating in Buffalo since 1998 and believes that the market is underserved for shredding capacity. At present more than 2/3 of shreddable scrap regularly leaves the area.
Mr Carlos E Agüero president & CEO of Metalico said “The Galvanizing Mill site is a perfect location for our expansion of services in Upstate New York. We expect the shredder will also draw feed from our other facilities, consistent with our strategy of penetrating geographically contiguous markets and benefiting from intercompany and operating synergies that are available through consolidation.”
Metalico Inc is a holding company with operations in two principal business segments: ferrous and non ferrous scrap metal recycling and fabrication of lead-based products. Metalico currently operates twenty six recycling facilities in New York, Pennsylvania, Ohio, West Virginia, New Jersey, Texas and Mississippi and four lead fabricating plants in Alabama, Illinois, and California.
Essar Steel opens marketing office in Spain and Italy
Saturday, 19 Feb 2011
Essar Steel announced that it opened its marketing offices in Valencia in Spain and Milan in Italy.
This is part of Essar’s strategy to strengthen its distribution network and be closer to its customers to provide consistent service.
Mr Vikram Amin Executive Director of Essar Steel said “Europe has been an export market for Essar Steel for over 15 years. Having a steel service centre in UK will enable us to provide world class service to our customers, and will give the company access to the quality conscious European Union market.”
Essar Steel already has a steel service centre in West Midlands in UK with an annual capacity of 500,000 tonnes.
JSW Steel raises funds for cold rolling mill at Vijaynagar
Saturday, 19 Feb 2011
ET reported that JSW Steel has tied up funds for its 2.3 million tonnes cold rolled mill at its Vijaynagar plant.
As per report, JSW has raised USD 280 million (INR 1280 crores) via external commercial borrowing. The total project cost is INR 4025 crores.
Rest of the debt will be tied up via ECA or external commercial assistance while buying equipments for the plant and JSW Steel will infuse INR 1300 crores of equity funding via internal accruals.
JSW Steel plans to build 1.9 million tonnes of continuous annealing line and 0.9 million tonnes of galvanizing, galvannealing line.
The company aims to finish the first phase by Q1 FY 14 and phase 2 by Q1FY15.
(Sourced from ET)
ET reported that JSW Steel has tied up funds for its 2.3 million tonnes cold rolled mill at its Vijaynagar plant.
As per report, JSW has raised USD 280 million (INR 1280 crores) via external commercial borrowing. The total project cost is INR 4025 crores.
Rest of the debt will be tied up via ECA or external commercial assistance while buying equipments for the plant and JSW Steel will infuse INR 1300 crores of equity funding via internal accruals.
JSW Steel plans to build 1.9 million tonnes of continuous annealing line and 0.9 million tonnes of galvanizing, galvannealing line.
The company aims to finish the first phase by Q1 FY 14 and phase 2 by Q1FY15.
(Sourced from ET)
SAIL plans public issue by March subject to market conditions
Saturday, 19 Feb 2011
Steel Authority of India said that it will attempt to launch the INR 8,000 crore follow on public offer before the fiscal end though submission of prospectus within February seems to be a difficult proposition.
Mr CS Verma chairman of SAIL told PTI that “We will definitely attempt to launch the FPO before the end of the current fiscal. Filing the red herring prospectus, however, within February seems to be a tall target.”
However, he said the attempt to launch the offer would entirely depend upon the market conditions and liquidity situation in the system. Mr Verma added that “We will attempt it depending upon the market condition. We have to see which are other issues that are hitting the market. We have to make assessment of the market conditions.”
Drawn his attention to the forthcoming FPO of State run Oil and Natural Gas Corporation, he said that “We will also have to see when ONGC is entering the market and when the refunds of the ONGC issue will go back to the investors. There has to be enough liquidity.”
ONGC is likely to enter the market with its proposed INR 13,000 crore FPO on March 15.
The SAIL FPO was earlier slated to hit the market in February, but got delayed due to some issue with the book running lead managers which has now been solved. However, fearing a repeat of sorts, the steel major is now keen on taking legally binding undertakings from the four investments bankers SBI Caps, Kotak Mahindra, Deutsche Bank and HSBC. It has though agreed to keep the banks for managing its issue.
Mr Verma said that “There were some conflict with BRLMs. Now, we have taken the legal opinion of the Attorney General of India. We are to take the legally binding undertaking from them. And, then we will decide on the future course of action and about the timing of the FPO.”
The government has so far garnered about INR 23,000 crore by divesting its stakes in Coal India, Engineers India, MOIL and some other PSUs against its target of INR 40,000 crore. It is banking on big ticket FPOs of ONGC and SAIL to meet the target.
(Sourced from PTI)
Steel Authority of India said that it will attempt to launch the INR 8,000 crore follow on public offer before the fiscal end though submission of prospectus within February seems to be a difficult proposition.
Mr CS Verma chairman of SAIL told PTI that “We will definitely attempt to launch the FPO before the end of the current fiscal. Filing the red herring prospectus, however, within February seems to be a tall target.”
However, he said the attempt to launch the offer would entirely depend upon the market conditions and liquidity situation in the system. Mr Verma added that “We will attempt it depending upon the market condition. We have to see which are other issues that are hitting the market. We have to make assessment of the market conditions.”
Drawn his attention to the forthcoming FPO of State run Oil and Natural Gas Corporation, he said that “We will also have to see when ONGC is entering the market and when the refunds of the ONGC issue will go back to the investors. There has to be enough liquidity.”
ONGC is likely to enter the market with its proposed INR 13,000 crore FPO on March 15.
The SAIL FPO was earlier slated to hit the market in February, but got delayed due to some issue with the book running lead managers which has now been solved. However, fearing a repeat of sorts, the steel major is now keen on taking legally binding undertakings from the four investments bankers SBI Caps, Kotak Mahindra, Deutsche Bank and HSBC. It has though agreed to keep the banks for managing its issue.
Mr Verma said that “There were some conflict with BRLMs. Now, we have taken the legal opinion of the Attorney General of India. We are to take the legally binding undertaking from them. And, then we will decide on the future course of action and about the timing of the FPO.”
The government has so far garnered about INR 23,000 crore by divesting its stakes in Coal India, Engineers India, MOIL and some other PSUs against its target of INR 40,000 crore. It is banking on big ticket FPOs of ONGC and SAIL to meet the target.
(Sourced from PTI)
Steel scrap import at Zhangjiagang Port in January soars by 70pct
Saturday, 19 Feb 2011
According to Zhangjiagang Entry Exit Inspection and Quarantine Bureau, steel scrap imports through Zhangjiagang port in this January soared by 70.1%YoY to 148,000 tonnes and its total value flying 405.1%YoY to USD 140 million.
Analysts attribute the burst increase to four reasons
1. Demand for raw materials rallies as global economy warms up since last year. When US dollar continues to devalue, international scrap price broke USD 400 per tonne CFR last May and hold in a high level. Scrap import via Zhangjiagang Port declined rapidly and almost stopped in Mid September.
2. Scrap recycling slows greatly in China last year, causing scrap inventories to tight especially when mills put over-reliance on scrap to replace some consumption of iron ore at previous month. As a result, scrap inventories at mills side become seriously limited.
3. Spurred by domestic inflation, price of scrap with lower quality than foreign arrivals jumps and almost touches the level of the imported price. Imported scrap is the best choice for domestic steelmakers to make up purchase shortage thus.
4. Steelmakers in China, the world’s largest producer and iron ore importer, have been seeking to diversify raw material sources to reduce the cost of iron ore imports. China has urged state-owned mills to increase use of scrap, making demand for scrap increase.
(Sourced from MySteel.net)
According to Zhangjiagang Entry Exit Inspection and Quarantine Bureau, steel scrap imports through Zhangjiagang port in this January soared by 70.1%YoY to 148,000 tonnes and its total value flying 405.1%YoY to USD 140 million.
Analysts attribute the burst increase to four reasons
1. Demand for raw materials rallies as global economy warms up since last year. When US dollar continues to devalue, international scrap price broke USD 400 per tonne CFR last May and hold in a high level. Scrap import via Zhangjiagang Port declined rapidly and almost stopped in Mid September.
2. Scrap recycling slows greatly in China last year, causing scrap inventories to tight especially when mills put over-reliance on scrap to replace some consumption of iron ore at previous month. As a result, scrap inventories at mills side become seriously limited.
3. Spurred by domestic inflation, price of scrap with lower quality than foreign arrivals jumps and almost touches the level of the imported price. Imported scrap is the best choice for domestic steelmakers to make up purchase shortage thus.
4. Steelmakers in China, the world’s largest producer and iron ore importer, have been seeking to diversify raw material sources to reduce the cost of iron ore imports. China has urged state-owned mills to increase use of scrap, making demand for scrap increase.
(Sourced from MySteel.net)
CISA sees Chinese steel prices seen rising in near term
Saturday, 19 Feb 2011
Reuters quoted the China Iron & Steel Association as saying that steel prices in the Chinese domestic market will continue rising in the near term due to recovering demand and rising raw materials costs.
CISA said that it expects a gradual pick up in demand at home and abroad with costs of raw materials such as iron ore, coke and scrap likely to keep surging, pushing steel prices upwards.
It said "This year is the opener of the 12th five year plan, so steel demand will remain strong as economic growth is expected to remain healthy."
It added that major steel consuming sectors such as construction, machinery, transportation, home appliances and shipbuilding would continue to grow, lifting steel demand, noting that infrastructure projects would also contribute to rising demand.
The Ministry of Industry and Information Technology forecast earlier this week that China crude steel output would hit a record 660 million tonnes this year with downstream demand providing a boost.
However, CISA also warned that non steel mill steel product inventories had risen sharply and domestic steel production is also on the rise.
CISA data showed that China produced 1.7033 million tonnes of crude steel on a daily basis in January up by 2.5% from December.
Non steel mill inventories of five major steel products in 26 big cities rose 11.2% to 14.72 million tonnes in January from the previous month especially for rebar and wire rod used in the construction sector.
(Sourced from Reuters)
Reuters quoted the China Iron & Steel Association as saying that steel prices in the Chinese domestic market will continue rising in the near term due to recovering demand and rising raw materials costs.
CISA said that it expects a gradual pick up in demand at home and abroad with costs of raw materials such as iron ore, coke and scrap likely to keep surging, pushing steel prices upwards.
It said "This year is the opener of the 12th five year plan, so steel demand will remain strong as economic growth is expected to remain healthy."
It added that major steel consuming sectors such as construction, machinery, transportation, home appliances and shipbuilding would continue to grow, lifting steel demand, noting that infrastructure projects would also contribute to rising demand.
The Ministry of Industry and Information Technology forecast earlier this week that China crude steel output would hit a record 660 million tonnes this year with downstream demand providing a boost.
However, CISA also warned that non steel mill steel product inventories had risen sharply and domestic steel production is also on the rise.
CISA data showed that China produced 1.7033 million tonnes of crude steel on a daily basis in January up by 2.5% from December.
Non steel mill inventories of five major steel products in 26 big cities rose 11.2% to 14.72 million tonnes in January from the previous month especially for rebar and wire rod used in the construction sector.
(Sourced from Reuters)
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