Swedish crude steel output up 24 percent in Sept over Aug

Wed,19 October,2011

According to the latest data released by Swedish Steel Producers' Association (Jernkontoret), in September this year Swedish crude steel production amounted to 382,400 metric tons, decreasing by 13.2 percent year on year but up 24.1 percent as compared to August this year.

Meanwhile, in the first nine months of the current year Swedish crude steel production amounted to 3,750,600 mt, with an increase of 4.5 percent compared to the same period last year.

Jernkontoret indicates that in Sweden at present around 60 percent of the total production comprises alloyed steel which also includes stainless steels. In the rest of the EU, as well as in the USA and Japan, alloy steels only comprise 10-15 percent of steel production.

Jernkontoret also noted that, per capita steel consumption in Sweden is close to 500 kg, which is relatively high in international terms. The average for EU-27 countries is around 390 kg per capita according to World Steel Association data for 2008.

Tags: raw mat, Sweden , Europe , production , European Union
(sourced steelorbis)

Beowulf announces positive study on iron ore mines in Sweden

Friday, 14 Oct 2011

A study on Beowulf Minings Ruoutevare and Kallak iron ore mines in Sweden revealed they could generate revenues of USD 9.1 billion and USD 8.4 billion respectively.

Updated economic estimates included in the report suggest that, over the first 15 years of mining, at a rate of 10 million tonnes per annum, Ruoutevare could generate gross revenues of USD 9.1 billion and Kallak could generate gross revenues of USD 8.4 billion based on an a long term high product price forecast of USD 126 FOB a tonne for iron ore concentrate from Ruoutevare and USD 132 FOB a tonne for iron ore concentrate from Kallak.

Based on management current unclassified resource estimate of 600 million tonnes for Kallak, the mine life could be up to 60 years and the forthcoming maiden independent JORC resource estimate will be utilised to complete the full updated conceptual study on Kallak in due course.

An updated conceptual economic model shows a payback period on total investment of as low as 2 years for Ruoutevare and 2.4 years for Kallak compared to the previous 2010 estimates of 3.1 years and 3.6 years respectively.

Northland inks lease agreement with Swedish port

August26,2011
By Matthew Hill

TORONTO – Northland Resources, developing an iron-ore mine in Sweden, said on Thursday it signed a lease agreement with the Scandanavian nation’s Narvik Port, and that it is on track to produce the steelmaking ingredient at the Kaunisvaara by the end of next year.

“We are very pleased that the Narvik authorities have provided the final approval which will allow us to start construction of the new terminal and ancillary infrastructure so that it will be ready for the first shipment of high-grade, high quality iron concentrate from our mines in Kaunisvaara at the beginning of 2013,” Northland CEO Karl-Axel Waplan said.

Work will now begin on a temporary shipping facility, including a quay, a depot, a conveyor belt, a de-icing facility, and an unloading facility for the railcars and railway lines.

The TSX-listed company aims to truck the iron-ore concentrate 150 km from the mine to a railway line that will rail it to the port, but is considering building a rail conection that would cost in the region of $1-billion, Waplan said earlier this year.

Northland has entered into industrial off-take contracts which will last for seven to eight years for Kaunisvaara’s entire five-million ton a year production.

The mine is located in north-eastern Sweden.

The company also announced the names of the three compnies it previously said would handle the transportation of its ore as Savage Service Corporation, Peab and Grieg Logistics.

Savage will carry the overall responsibility for the coordination, management and cooperation between the three parties and coordinate the work program.

(sourced Mining Weekily)

Standard Bank expanding physical iron ore and swaps trade

Wednesday, 24 Aug 2011

Reuters reported that Standard Bank started to trade iron ore swaps this year, chiefly as an add on to its expanding physical iron ore business and this derivatives activity is attracting ever more customer interest.

Mr Jim Coupland global head of base metals and bulk commodities, told Reuters in an interview that “We see the key being the physical flow and the derivatives being an add on to manage price risk. We started to trade iron ore swaps this year mainly to manage our prices risk, but from a customers' point of view it has also become more interesting.”

He added “We have already concluded some long term iron ore off takes in Sweden, Latin America and Australia and we are actively trading material in China as well.”

Iron ore swaps allow producers, consumers and financial market participants to hedge or bet on prices in the future. A number of investment banks have started to trade iron ore swaps in the last few months. Some, including Citi and Goldman Sachs are also looking at physical iron ore trading, attracted by large market volumes that mean potentially high returns.

Standard Bank also started trading physical steel products such as billet and scrap last year and is active in steel derivatives such as rebar on the Shanghai Futures Exchange and billet in the London Metal Exchange.

Standard Bank physical steel and iron ore traders are based in Shanghai, Hong Kong, Singapore and London while the bulk of the risk management team is based in Singapore.

(Sourced Thomson Reuters)

SSAB Q2 beats forecast, sees growing demand

Fri Jul 22, 2011 | By Reuters

* EBIT 1.3 bln SEK vs consensus 1.1 bln
* Sees weaker Q3 than Q2 but recovery continuing
* Shares up 7 pct

STOCKHOLM, July 22 (Reuters) - Swedish specialty steelmaker SSAB (SSABa.ST: Quote) posted a better-than-expected second-quarter operating profit on Friday and said the recovery was continuing.

Operating profit at the company, which bought North American steel maker IPSCO in 2007, grew to 1.3 billion crowns ($203 million) from 708 million the same period last year, against an expected profit of 1.1 billion in a Reuters poll.

Operating profit was boosted by good demand at the beginning of the second quarter, a trend that slowed down towards the end of the quarter, SSAB said.

SSAB's shares rose 6.9 percent at 0702 GMT, outperforming the STOXX Europe 600 Basic Resources Index which was up 0.75 percent .

Several planned maintenance stops, continued price pressure, together with higher raw materials costs and uncertainty about Europe indicate that the third quarter will be weaker than the second, the company said.

"However, the recovery is continuing and demand is expected to be stronger than in 2010," Chief Executive Martin Lindqvist said in the report.

Extended maintenance work in Sweden will affect operating profit negatively by 100 million to 150 million crowns during the third quarter. A longer outage in Montpelier, Iowa in the third and fourth quarter will hit operating profit by 350 million to 400 million crowns, of which roughly 25 percent will be in the third quarter.

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Magang Group reports strong color coated plate sales to Europe

Friday, 25 Feb 2011

It is reported that Anhui Province based Chinese steelmaker Magang Group has stated that in early February received an order for 3,425 tonnes of color coated plate from Europe while in mid February it received another order for 2,000 tonnes of color coated plate also from Europe.

Magang Group reports strong sales of color coated plate after China Spring Festival holiday.

After Poland became Magang Group first European customer for color coated plate in 2010, bookings for color coated plate have been received from Sweden, Belgium and other European countries.

(sourced:steel orbis)