Nine Chinese producers rank among world’s top 20 steelmakers in 2010

Thu, 10 March 2011 11:56:05 (GMT+2)

In 2010, as the world economy recovered, global crude steel output reached 1.414 billion mt, up 15 percent year on year. The capacity utilization rates of major steelmakers recovered, but their output levels were still lower than the levels recorded before the start of the financial crisis. In 2010, the aggregate crude steel output of the world's top 20 steelmakers amounted to 612 million mt, accounting for 43 percent of the total global crude steel output.

The list of the world's top 20 steelmakers in terms of crude steel output for 2010 includes nine Chinese steelmakers, of which six rank in the top 10 while four rank in the top five.

ArcelorMittal remained the largest steelmaker in the world in terms of crude steel output. In 2010, its crude steel production reached 90.6 million mt, up 17.4 million mt compared to its 2009 volume, but still down on the 103 million mt recorded for 2008. Chinese steelmakers Hebei Iron and Steel Group, Baosteel, Anshan-Benxi Iron and Steel Group, Wuhan Iron and Steel Group (WISCO) ranked second, third, fourth and fifth respectively. South Korea's POSCO and Japanese steelmakers Nippon Steel Corp. and JFE were respectively ranked sixth, seventh and eighth. Meanwhile, Chinese steelmakers Shagang Group and Shougang Group were ninth and tenth in the list of top global steelmakers.

Tags: China , India , Japan , Korea S. , Far East , Indian Subcon , Baosteel , WISCO , ArcelorMittal , Shagang , production , steelmaking , POSCO , JFE Steel , Nippon Steel , East Asia and Pacific , South Asia

Container imports into the US fall 9.94 percent in February

Thursday, 10 March 2011 03:10:59 (GMT+2)

Minneapolis, Minnesota-based trade intelligence company Zepol announced Wednesday that import shipment volume into the US for February, measured in TEU's, fell 9.94 percent from January, but increased 9.03 percent over February 2010. The total number of shipments last month also decreased 11.09 percent from January but rose 7.27 percent over February of last year.

Asian origin volumes fell 11.42 percent from January to February, while imports from Central America, measured in TEU's, rose 4.88 percent from January to February. Ports on the Atlantic Coast showed the greatest increases in volumes for February 2011 over January 2011. The most noteworthy increases were West Palm Beach, FL and Chester, PA with increases of 37.86 percent and 18.73 percent respectively.

Tags: Far East , North America , South America , imp/exp statistics , South Asia

Steam coal prices expected to drop in China as winter ends

Thu, 10 March 2011 11:58:22 (GMT+2)

According to the data issued by the China National Coal Association (CNCA), as of March 10 the spot price of steam coal at China's Qinhuangdao Port is standing at RMB 820-830/mt ($125-126/mt), including 17 percent VAT. At the same time, Australian steam coal offers for the Chinese market are now priced at RMB 930/mt ($142/mt) CFR southern ports, while ex-Russia steam coal offers are at RMB 938/mt ($143/mt) CFR southern ports. Both are much higher than domestic sales prices.

With the peak winter season for coal consumption coming to an end, inventories of steam coal have recently surged up at Qinhuangdao port. In this context, steam coal prices in China are expected to slip down in the coming period.

Tags: raw mat , Australia , China , Russia , Oceania , CIS , Far East , trading , mining , East Asia and Pacific

Japan’s January stainless steel exports fall 17.3 percent from December

Thu, 10 March 2011 14:20:09 (GMT+2)

According to the data issued by the Japan Iron and Steel Federation (JISF), in January this year Japan's stainless steel exports amounted to 93,842 mt, registering a decrease of 17.3 percent compared to December 2010, but a 9.2 percent increase compared to January 2010.

Regarding Japan's major stainless steel export markets, in January of the current year the country's stainless steel exports to China totaled 13,268 mt, down 40.2 percent; exports to South Korea rose 17 percent and reached 20,412 mt; the export volume to Taiwan reached 10,803, down 28.2 percent; exports to the US totaled 5,559 mt, decreasing by 18.6 percent; while exports to Thailand came to 10,450 mt, falling by 40.9 percent - all on month-on-month basis.

Meanwhile, Japan's stainless steel imports in January amounted to 13,228 mt - down 12.4 percent month on month and 1.5 percent year on year.

Tags: stainless , stainless , Korea S. , Far East , North America , Southeast Asia , imp/exp statistics , steelmaking , East Asia and Pacific, USA , China , Japan , Thailand , Taiwan

Essar in pact to revive Zimbabwe Iron and Steel Company

March 10, 2011 By NetIndian News Network

Mumbai: Essar Africa Holdings Limited (EAHL), a part of the Essar Group, today said it had signed an agreement with the Government of Zimbabwe (GoZ) for the revival of the operational assets of Zimbabwe Iron and Steel Company (ZISCO).

A press release from the company said the agreement marked an important milestone in the process which started with the public tender for a majority of the Zimbabwean government's shareholding in ZISCO and begins a new chapter for the economic growth of that country.

The release said EAHL and GoZ would set up two joint venture (JV) companies that shall acquire all the steel and mining related assets and liabilities of ZISCO and its subsidiaries.

Further, EAHL will release GoZ from its guaranteed obligations under the ZISCO debt, the release said.

It said the steel JV would be owned 60/40 and the minerals JV owned 80/20 by Essar and GoZ, respectively.

The transaction will close in due course upon facilitation of various approvals, including approvals from the enabling ministries and an acceptable settlement of the GoZ guaranteed debt obligations of ZISCO.

Upon closing, EAHL and GoZ will also finalize and settle liabilities such as unpaid wages and salaries and amounts due to various local creditors and so on, the release said.

"We believe that this transaction will serve as a catalyst for significant future foreign direct investment into Zimbabwe," he said.

ZISCO is an integrated steel company with a rated capacity of one million tonnes for the manufacture of long products. It has been non-operational for the last few years due to shortage of funds for working capital and maintenance of plant and equipment, irregular supply of power and other critical raw materials and infrastructure. ZISCO also owns iron ore and limestone mining rights and other claims, which require significant investment in exploration and development.

Firdhose Coovadia, Resident Director, Essar (Middle East & Africa) and Director, EAHL said: "We believe that the new ventures will be well positioned to be a low-cost steel producer that can meet the growing demands of the regional steel market and capitalize on the forecasted growth in sub Saharan Africa. We also recognize ZISCO as a vital and strategic asset for the Zimbabwean economy and Essar looks forward to making a meaningful contribution to the future development of Zimbabwe and its people.The revival of ZISCO represents a challenging task that will require the co-operation of various parties, and entail significant capital expenditure."

He said the Essar Group had a track record of successfully commissioning and operating greenfield and brownfield steel plants in different parts of the world including India, Canada, UK and Indonesia.

Mr Coovadia said the Group would bring in investments and expertise in steelmaking, beneficiation, project management, construction, power generation and logistics.

"We believe that the Essar Group is a good partner for the revival of ZISCO’s assets. With the entry of EAHL as a partner, the various stakeholders of ZISCO, especially the employees will stand to benefit significantly," Mr Nyasha Makuvise, Chairman of the Board of ZISCO, said.

Mr V. Ashok, Indian Ambassador in Zimbabwe commented: "This is an important milestone in the long-standing and fruitful relationship between India and Zimbabwe which dates back to the independence movement in Zimbabwe, and we believe that this partnership will further bring the people of India and Zimbabwe closer."

Essar Group’s current operations in Africa include oil and gas assets in Nigeria, Kenya and Madagascar, telecom assets in East Africa, BPO operations in South Africa and coal concessions in Mozambique.

Tags : iron ore and limestone mining rights, exploration and development, steel mills, raw material, coal, Zimbabwe Iron and Steel Company, ZISCO, steel joint venture, FDI

Dry bulk market showing signs of stronger recovery - Nikos Roussanoglou

Thursday, 10 March 11

The dry bulk market jumped by 3.37% yesterday, with the industry’s benchmark, the Baltic Dry Index (BDI), moving up to 1,472 points, levels not seen in weeks. The recovery was led by the Capesize market, which burst forward by an impressive 6.52%, with the Baltic Capesize Index reaching 1,699 points, finally surpassing the relative earnings of the much smaller in size Supramax ship type (1,512 points). As for the Panamax segment, it still “rules” the dry bulk market with the highest earnings, with the Baltic Panamax Index rising yesterday by 2.29% to 2,095 points.

According to Fearnley’s latest weekly report, in the capesize market, “both actual and nominal levels rising throughout the week, assisted by improving paper values and ever-increasing bunker prices. Considering the market remains massively overtonnaged, however, this appears more of a "dead cat bouncing" situation than the start of a fundamental recovery. Atlantic stands out as the most active/promising area, with genuine end-users to a large extent making up spot demand. Average tc-levels are up some 65% to come in at around usd 8k - which at least makes it worthwile to sail instead of drifting. Period fixing is limited to a handful of key players - levels varying considerably from usd 10k done on 16,4000 dwt/blt 1996 delivery China prompt for 4-6 months, to 180kdwt/blt 2010 fixing 4-6 months at usd 15k also basis delivery china prompt - the latter interestingly almost on par with 12 months concluded on 177kdwt/blt 2004 delivering end march for major miners” said the shipbroker.

Regarding the Panamax market, it mentioned that “after a slow last week the Panamax market took a clear turn this week. Fresh grain cargoes out of ECSA appeared and owners starting to ballast their vsls from Pacific in the same direction. Typical rates to secure ECSA grain business around 19,000/Day. Moreover, a more active period market with operators booking short period tonnage to cover grain business at levels rising from mid 17 towards the 19,000 mark. Atlantic still fine balanced and Continent tight for prompt tonnage with TA rounds fixed at 16-18k. The Pacific spot market not as enthusiastic. However, owners able to secure levels around the healthy mid teens. Propelled by the fresh grain orders, more active short period market and a slightly positive forward curve, nervousness turned into a growing positive sentiment. As the cape market also show signs of a recovery owners are raising their levels for longer periods. Takers are still reluctant though” the report noted.

In a separate weekly analysis by Commodore Research & Consultancy, “Chinese iron ore fixtures have remained low due the near record amount of iron ore that is stockpiled at Chinese ports. 21 vessels were reportedly chartered to export iron ore to China last week, 1 less than the previous week. Chinese thermal coal fixtures have also remained low in recent weeks due to robust port stockpiles, but a greater than usual amount of coal fixtures did come to the market last week. Chinese steel production could come under a small amount of near-term pressure due to falling prices and the continued surge in domestic steel stockpiles. Market sentiment inside and outside of China remains firm. Similarly, Commodore mentioned that coastal shipping rates continue to rebound, with rates to haul grain along the Chinese coast now finding support (only rates to ship coal were previously finding support).

Rates to haul coal continue to find the most support; rates to haul iron ore remain flat. Coastal rates to ship coal from Qinhuangdao (located in northeastern China) to Shanghai have increased to about $6.71/ton, an increase of $1.06 (19%) from a week ago. Rates to haul coal from Qinhuangdao to Zhejiang province (located directly south of Shanghai) have increased to $6.87/ton, an increase of $0.92 (15%) from a week ago” said Commodore.

Thermal coal demand remains firm and the 6 vessels chartered to ship thermal coal to China last week were up slightly from the trailing four-week average. On average, 4 vessels were chartered to export thermal coal to China during the weeks ending February 4 to February 25. A large amount of coal remains stockpiled at Qinhuangdao and other major Chinese coal ports which continues to result in Chinese thermal fixture volumes remaining much lower than the robust fixture activity seen in late November through early December.
Source: Nikos Roussanoglou, Hellenic Shipping

Tags : Qinhuangdao port, thermal coal shipment,

If you believe an article violates your rights or the rights of others, please contact us.

The biggest company you never heard of

Thu Mar 10, 2011 10:47am GMT

Performance is rewarded on a scale that would turn even Wall Street green, with bonuses for star traders running into the tens of millions. Glencore's 500 partners and key staff are sitting on a book value of $20 billion.

The secret, says the second outsider, is the traders' incredible focus. "I don't recall talking to any of these guys -- and I've spent a lot of time with them -- about anything other than business," he told Reuters. "I have no idea what sort of family life these guys have. This is everything."

Employees are hired young and expected to make a career at the group, where they are known as either "thinkers" -- bright number-crunchers who design the company's complex financial deals -- or "soldiers", the hard-driven traders who fight to win the transactions.

The company's 10 division managers are aged 37 to 52 and remain largely anonymous outside Glencore's business circles. "They're really bright guys, they are really focused, they play to win every day," says a mining executive in North America. Or as the second outsider puts it: "They look like kids, really -- but they are incredibly impressive individuals."

Nobody more so than Chief Executive Ivan Glasenberg, a lean publicity-shy operator whose sport is race-walking. Glasenberg, 54, grew up in South Africa and has been a champion walker for both South Africa and Israel. Each morning he runs or swims, often with colleagues. "The thing about Ivan, he can fly in and meet presidents of countries but he also talks to the guy on the trading floor," said Jim Cochrane, chief commercial officer and executive director of the Kazakh mining group ENRC.

After earning an MBA at the University of Southern California in 1983, Glasenberg was hired by Glencore as a coal trader in South Africa. He does not suffer fools and has a fiery temper, but is also intensely charming and has a sharp memory for details about people, according to people who know him. Despite being a billionaire in charge of thousands of staff, "this is a guy that picks up his own phone," the second outsider said. For more visit Thomson Reuters site

Zimbabwe PM says not set on foreign firm ownership

Thu Mar 10, 2011 9:54am GMT

HARARE, March 10 (Reuters) - Zimbabwe's cabinet has not yet decided minimum ownership thresholds for foreign companies that are ultimately supposed to surrender a 51 percent stake to local blacks, the prime minister said on Thursday.

Morgan Tsvangirai also told a meeting of business leaders the government had not yet drawn up detailed plans on a proposed sovereign wealth fund to buy majority stakes in foreign mining firms. (Reporting by by MacDonald Dzirutwe; Editing by Jon Herskovitz,sourced:Thomson Reuters)

Rio Tinto sweetens Riversdale bid to break stalemate

Thu Mar 10, 2011 1:18am GMT
* Offer raised to A$16.50 per share from A$16
* Rio maintains 50% acceptance limit for bid to go ahead
* Riversdale shares fall, 9 percent below offer value
* Rio says offer is final if no competing bids

MELBOURNE, March 10 (Reuters) - Global miner Rio Tinto raised its offer for Mozambique-focused coal miner Riversdale Mining to $3.9 billion in a final bid to woo key shareholders who have held up the deal and gain control of coveted coal assets.

Investors doubted the move would be enough to secure the 50.1 percent acceptances Rio wants and sent Riversdale's shares down as much as 2.4 percent.

"The market's clearly a bit skeptical that it will get across the line," said Peter Chilton, an analyst at Constellation Capital Management, which owns shares in Rio Tinto.

Rio Tinto raised its offer price by 3 percent to A$16.50 per share on Thursday and extended the offer period for the third time, to April 1, but said the new offer was its final one if there were no competing offers.

Standing in Rio's way are India's Tata Steel , the world's No. 7 steelmaker, and top Brazilian steel producer CSN , who have increased their stakes in Riversdale since the bid and now hold a combined 47 percent.

Without their support, Rio would need nearly 100 percent acceptances from the rest of Riversdale's shareholders to get majority control.

"It's going to be quite hard," Chilton said.

As of March 4, Rio Tinto only had acceptances on 17.9 percent of Riversdale's shares.

Tata Steel and CSN have both said they are mainly interested in securing coking coal from Riversdale. Tata, which already has a stake in Riversdale's Benga coking coal project in Mozambique, has said it was talking to Rio about a range of options.

CSN has not publicly revealed its intention over the Riversdale stake or about its possible talks with Rio Tinto.

Analysts said the two companies would probably like to see Rio Tinto, with deeper pockets and more technological skills than Riversdale, developing Riversdale's Mozambique mines and infrastructure.

"There is no question that Rio Tinto's expertise is crucial to overcoming the development challenges of Riversdale's projects," Rio Tinto Energy chief executive Doug Ritchie said in a statement.

If Rio did not take over Riversdale, shareholders would be likely to face big equity raisings by Riversdale to help fund the development of its coking coal projects.

"It's difficult to see that Tata Steel and the Brazilians really want to be involved in what would be very expensive coal development projects," Chilton said.

Complicating talks is China's third-largest steel maker, Wuhan Iron and Steel Corp , which had an agreement to buy a 40 percent stake in Riversdale's Zambeze coal project in Mozambique, with rights to coal supply from Zambeze and Riversdale's other key project, Benga.

Riversdale's shares last traded down 0.5 percent at A$15.05, about 9 percent below the offer price, after touching a low of A$14.77. Rio's shares fell 1.5 percent in a broader market that was down 0.8 percent. (Reporting by Sonali Paul and Balazs Koranyi; Editing by Ed Davies and Dhara Ranasinghe)

Moody's lowers Spain's debt qualification

Thu, Mar10, 2011

MADRID, March 10 (Xinhua) -- Debt qualification agency Moody's on Thursday lowered its qualification of Spain's sovereign debt by one mark from Aa1 down to Aa2. The agency refused to rule out lowering its qualification of the debt further in the future.

Moody's explains its decision by saying that the cost of restructuring the Spanish financial system is higher than expected and that it will provoke an increase in the country's deficit.

While the Spanish government calculates its reforms need an injection of 20,000 million euros, Moody's believes it will be more than twice that figure and that the amount needed could even rise as high as 110,000 million euros.

These needs place the Spanish economy at risk from any turbulence in the financial markets.

The agency is also worried about the lack of government control over the budgets of Spain's autonomous communities and highlights that the country has only "moderate" perspectives of short term economic growth.

Meanwhile the Spanish government's reform of labor laws and pensions, which will see the retirement age raised to 67 by 2029, have been praised by Moody's and are given as reasons why Spain's qualification has not been lowered further.

Moody's also believes that Spain can sustain its current debt and doesn't believe that the country will need any help from rescue funds.

This is the second time that Moody's has lowered its qualification of Spain's sovereign debt in recent months. The first time it did so was in September 2010, when it reduced it from the highest possible rank: AAA to Aa1. The agency then warned of a further reduction in December of last year.

Two other debt qualification agencies, Standard and Poor's and Fitch, also withdrew their maximum qualification for Spain's debt in April and May last year, respectively.

Editor: Mo Hong'e

Fuel prices at record highs in Britain amid Mideast unrest

Thu, Mar10, 2011 11:31:05

LONDON, March 9 (Xinhua) -- The pressure on world oil prices has led to record costs for fuel in Britain, raising concerns that household incomes could be hit significantly and the government may have to change its policies.

The average price of petrol in Britain has hit a new record of 1.32 pounds (2.14 U.S. dollars) per liter. Such petrol spike in Britain is "very much based on what's happening in Libya and in the Middle East at the moment," said Andrew Howard, spokesman for the Automobile Association, one of Britain's oldest motoring organizations.

The toppling of regimes in the North African states of Egypt and Tunisia has created much unease in the Middle East. Oil prices have been pushed high by disruption of oil supplies in Libya after unrest broke out there in mid-February, and a continuing fear that the armed confrontation between Muammar Gaddafi and rebels opposing to his rule may escalate.

Pessimists worry that similar disruption could happen in other major oil-producing countries in the Middle East.

In Britain, average petrol prices in mid-February hit yet an all-time high of 1.28 pounds (2.08 U.S. dollars) a liter in response to the uprisings in Egypt and Tunisia. It then rose nearly 4 pence a liter in response to turmoils in Libya.

Howard told Xinhua that fuel prices were also driven higher by retailers attempting to recoup profits lost after a winter of bad weather which forced drivers off the roads in November and December, and by an increase in the sales tax VAT from 17.5 percent to 20 percent starting in January.

In Britain, petrol prices stay higher than most other countries due to central government taxation.

Howard said tax now represented 62 percent of the cost of a liter of petrol, but it used to be as much as almost 80 percent in 2000, indicating that the present spikes were driven by mostly external forces rather than government policy.

In 2000, surging gas prices sparked protests and strikes led by lorry drivers and farmers who blockaded the entrances to oil refineries and oil shipment depots, which resulted in widespread food shortages and disrupted industrial production.

The government is keen not to see that again, and also to keep the economy moving. Chancellor of the Exchequer George Osborne will announce his budget for the coming fiscal year on March 23. Domestic media are full of speculation that Osborne may act to reduce gas prices for consumers, perhaps by lowering taxation or creating a taxation mechanism that responds to world oil prices.

A British exchequer spokesman said: "The government recognizes that higher fuel prices increase the cost of living for people and is examining options as part of the budget process, including a fair fuel stabilizer that would reduce fuel duty as oil prices rise but increase them when they drop."

PUBLIC CONCERN

Market trader Gavin Harman said he noticed food prices were going up. "The cost of fruit and vegetables has gone up, I think it's because of the higher fuel prices. It costs more to deliver the produce. I hope it doesn't go up any more," he told Xinhua.

Nursing assistant Valerie Jones said she felt unaffected by rising fuel prices because she did not own a car. "I hope fuel prices don't stay at this high level. If they do, my weekly shopping may cost more."

Alan Maynard, an IT technician, said he had read newspaper headlines about high fuel prices, but fuel prices had been high for some time already and he did not feel the present situation was a crisis.

"Already I think twice about using my car, especially with good public transport in London," he said. "The real crisis could come if there is more unrest in the Middle East. That could send oil prices shooting up, and then who knows what could happen?"

A leading environmental group, Greenpeace, sees the high oil prices as a signpost that the government must change direction on policies and move away from oil.

Vicky Wyatt, head of Greenpeace's transport campaign, said: "This is at least the fourth time in the last 10 years that volatile oil prices have pushed the cost of motoring right to the top of the political agenda. Every time the issue does raise its head the politicians tinker with the tax regime rather than addressing the cause of the problem -- which is our country's dangerous over-dependence on oil."

"Ministers should act immediately to ramp up the efficiency of our cars and invest in electric vehicles by driving forward urgent measures to reduce the amount of oil we use," she added

She said that by doing this the government could save money, boost new industries and reduce carbon emissions all in one go. "It is time to go beyond oil," Wyatt said.

However, the British government also views higher oil prices as a spur to innovation, and an incentive to move toward an economy which uses less oil.

In a speech to British business leaders on Wednesday, the coalition government's minister for energy and climate change Chris Huhne said that record oil prices in the 1970s and 1980s had sparked a technological advancement from vehicle manufacturers to make engines more fuel efficient.

BRITAIN AS AN OIL PRODUCER

Britain is a producer of oil, from its North Sea oil fields. The price of Brent crude oil has risen 15 percent over the past month, largely in response to the crisis in Libya.

World oil price hikes also add government taxation revenue from the North Sea oil fields, bringing at least some positive effect on Britain.

Nevertheless, a British government spokesman said higher world oil prices did not always translate into a taxation windfall for the British government.

In addition, only 13 percent of the British economy is now based on manufacturing, whereas in the 1970s when a major oil crisis broke out, manufacturing used to dominate the country's economic output. Back then, high oil prices caused a major slump in manufacturing and the whole economy. That couldn't be the case now.

Nippon,Anglo agree 50 pct coal hike-Nikkei

Thu Mar 10, 2011 8:27am GMT

* Price rise in line with estimates - analyst
* Talks with BHP continuing - Nikkei
* Steelmakers seeking 25 pct steel price hike after April

March 10 (Reuters) - Nippon Steel Corp , the world's No. 4 steelmaker, and mining giant Anglo American Plc have agreed to a 50 percent jump in coking coal prices for the April-June quarter, the Nikkei business daily said, which is roughly in line with market estimates.

"This is not a big surprise as it is roughly in line with steelmaker and market expectations," said Kazuhiro Harada, an analyst at Nikko Cordial said.

"There is no need to change our earnings assumptions."

Nippon Steel declined to comment on the report.

The company expects surges in coal and iron ore prices to result in a 15,000 yen ($182) per tonne rise in the cost of raw materials after April. That would add around 20 percent to its average product price of 81,000 yen per tonne in the Jan-March quarter.

The company said it was seeking a 25 percent price hike from domestic steel users, like Toyota Motor Corp , aiming to fully pass on sharply higher costs from the October-March period.

The Nikkei, without citing sources, said on Thursday the coking coal price would be raised to a record $330 per tonne for the April-June period, up from $220 in the current quarter, due to growing demand in emerging countries and supply disruptions in Australia after disastrous rains battered its mines and infrastructure.

Nippon Steel and other major steelmakers are still in talks with BHP Billiton , the world's biggest diversified miner, which wants to set prices monthly instead of quarterly, the Nikkei said.

Steelmakers are worried that monthly price revisions would lead to cost volatility. The agreement with Anglo American is for quarterly prices, the Nikkei said.

The price of iron ore, another major input, is also expected to climb to a record high of around $170 a tonne in the April-June quarter, up 20 percent.

But the price of iron ore could peak in the July-September quarter as slower demand for steel in China amid monetary tightening and ballooned inventories has weighed on raw material prices.
($1 = 82.755 Japanese Yen) (Reporting by Yuko Inoue; Editing by Joseph Radford, sourced Reuters)

Tags : steel mills, raw material, BHP Billiton, Rio Tinto

Nippon Steel ups H-beam price by 6 pct -source

Thu Mar 10, 2011 9:10am GMT

Price rising by 5,000 yen per tonne - source

* March marks fourth-consecutive monthly price rise
* Nippon aims for total Y20,000 rise by April - source (Adds details, Feb-end stock level)

TOKYO, March 10 (Reuters) - Nippon Steel Corp has raised its March price for H-beam steel used in construction by around 6 percent from February, a source said, even though sluggish sales pushed inventories higher during the month.

Nippon Steel, the world's No.4 steelmaker and a major producer of H-beams in Japan, has told distributors it is raising prices by around 5,000 yen($60)per tonne, a source with direct knowledge of the matter said.

The company, which has already raised the price of H-beams by roughly 15,000 yen in the past three months, aims to up that to a total of 20,000 yen by the end of March to pass on soaring input costs, the source said.

Nippon Steel said on Thursday domestic demand for construction steel remained weak, but that there were signs of a pick up in office building and small infrastructure projects.

The company's domestic inventories of H-beam steel rose 8.9 percent to 174,600 tonnes at the end of February from the month before, it said.

"Shipments were slow in February due in part to the market's seasonal weakness, but with demand from small office and other building projects increasing, we plan to implement another price hike as soon as possible," said a company official, who asked not to be identified as he was not authorised to talk about the issue publicly.

Rival Tokyo Steel Manufacturing Co said last month it would raise prices of all its products in March to cover rising input costs. ($1 = 82.755 Japanese Yen) (Reporting by Yuko Inoue; Editing by Joseph Radford,sourced:Thomson Reuters)

NALCO issues 3,000 T aluminium export tender: Source

10 Mar, 2011, 12.44PM IST,REUTERS

BHUBANESWAR: India's state-run National Aluminium Co Ltd (NALCO) has issued a tender to export 3,000 tonnes of aluminium ingots, a senior company official said on Thursday.

The last date for submission of bids is March 14, the official, who is close to the tendering process but could not be named due to company policy, told Reuters.

The metal would be supplied to the buyer in one batch either this month or next, as per the buyer's choice, the source said.

NALCO , the tenders of which serve as a global benchmark, last sold 7,500 tonnes of aluminium ingots in February to Switzerland-based Alaska Metals , at a premium of $106.51 per tonne over the average LME cash price on a delivered basis.

Tata Steel's raw material costs to go up to USD 7 bn in FY'11

10 Mar,2011, 02.22PM IST,PTI
NEW DELHI: Tata Steel Group today said its expenses on key raw materials are likely to go up by USD 1 billion in the current fiscal to USD 7 billion due to a rise in input costs.

"We expect a USD 1 billion rise on raw material expenses to USD 7 billion this fiscal on account of floods in Australia and increased activity from China," Tata Steel Group Director (Procurement) Kees Gerretse said on the sidelines of an event here.

The costs on inputs would further escalate by around 15 per cent next fiscal over 2010-11 levels, he added, attributing the rise to higher iron ore and coking coal prices, which went past USD 300 a tonne as a result of a global scarcity in the wake of floods in Australia's Queensland.

Steel prices, as a result, will go up next fiscal as the manufacturers of the alloy are unlikely to absorb the escalated input costs on the back of increased demand for the alloy, he added.

Queensland contributes over 60 per cent of coal exports from Australia, world's largest supplier of coking coal.

As a whole, Tata Steel Group, with a total steel-making capacity of 28.1 million tonnes per annum (mtpa), buys around 17 million tonnes coking coal and up to 27 million tonnes of iron ore a year.

While Tata Steel India has captive iron ore sources, the European operation has none of the key raw materials to feed the plants. Its entire requirement is met through imports. The company had earlier said it would ensure 50 per cent of the key inputs requirement for its European subsidiary by 2015.

Tata Steel has already acquired stake in two coal mines in Mozambique and one in Australia. It has also stakes in an iron ore mine in Ivory Coast and two in Canada.

Gerretse said coal production from Mozambique blocks would peak at 2 mtpa in next two years. Iron ore from the mines in Canada would start coming in from 2014.

The group, he said, was looking at opportunities for acquiring greenfield coal and iron ore assets, but for the time being, its focus would be on the existing mines.

"The price of coking coal will start normalising from August onwards. Iron ore price is also likely to remain stable after the second quarter," he said.

Port Hedland iron ore shipments tumble in seasonal drop

Thu Mar 10, 2011 4:22am GMT

* Chinese New Year probably biggest factor in drop

* Cyclone, shorter month also weighed

SYDNEY, March 10 (Reuters) - Iron ore shipments from Australia's Port Hedland, one of the world's largest export terminals, fell 16 percent in February, but the drop was mostly due to seasonal and weather-related factors, and analysts expect a rebound in March.

Iron ore shipments dropped to 12.85 million tonnes in February from 15.33 million in January and 17.33 million in December, the port said on Thursday, but analysts suggested the chief culprit was a holiday in China, the biggest destination of the port's shipments.

"It's all seasonal with the Chinese New Year when you've got a week or so with not too many (customers) to trade with," said Tom Price, a commodity analyst with UBS.

"A better signal is the spot price, which was quite strong, indicating solid demand."

Officials at Port Hedland, which is used by BHP Billiton and Fortescue Metals and shipped more than 180 million tonnes of iron ore in 2010, pointed out that the port was closed for several days in February due to tropical cyclone Carlos and that the unadjusted figures also do not reflect the shorter month.

Iron ore shipments a year earlier dropped around 2 million tonnes in February, but made up nearly all of the loss in the following month.

February exports from Port Hedland to China fell to 9.03 million tonnes from 9.97 million in January while exports to Japan nearly halved to 1.47 million from 2.82 million.

China's iron ore imports in February reached 48.64 million tonnes, down 29.5 percent from a January record, with trade disrupted by the Lunar New Year, China's customs agency said in a statement on Thursday.(Reporting by Balazs Koranyi Editing : Himani Sarkar, sourced Reuters)

Tags : China's iron ore imports in February, steelmaking

India's February exports provisionally up 49.8 per cent Y-o-Y

10 Mar, 2011, 12.34 PM IST, Reuters

NEW DELHI: India's February exports were provisionally up an annual 49.8 per cent at $23.6 billion, while imports rose 21.2 per cent to $31.7 billion, Trade Secretary Rahul Khullar said on Thursday.

With February's data, Asia's third-largest economy has crossed its earlier annual target of $200 billion or 15 per cent export growth for the current fiscal year, with one month to spare.

April-February exports were up 31.4 per cent at $208 billion.

However, the government has lately raised concern about a ballooning trade deficit that could double in three years and cause an unsustainable current account deficit.

The trade deficit was at $8.1 billion in February.

Wuhan, Angang Turn to Niche Steel, Foreign Plants on China Glut

Thu, Mar10, 2011

Overcapacity and rising costs have depressed the average profit margins of Chinese steelmakers to just 3.5 percent in 2010, the lowest of any industry, according to the government. Photographer: Nelson Ching/Bloomberg

Wuhan Iron & Steel Group, Angang New Co. and rival Chinese mills are expanding overseas and turning to specialty products to battle overcapacity in China, the world's biggest producer of the metal.

Wuhan Steel, the nation's fourth-biggest mill, is in talks to build plants or buy rivals in other countries, General Manager Deng Qilin said in Beijing while at the National People's Congress. Angang may develop its specialty steel product business, General Manager Zhang Xiaogang said.

Overcapacity and rising costs have depressed the average profit margins of Chinese steelmakers to just 3.5 percent in 2010, the lowest of any industry, according to the government. The nation's new five-year building program will need more high- grade alloy for railroads and nuclear power plants, China Iron and Steel Association said.

'Every steelmaker is trying to diversify their business," said Hu Yanping, a Beijing-based analyst with researcher UC361.com. "But they aren't all going to succeed."

Wuhan Iron & Steel Co., the listed unit of Wuhan Steel, has fallen 30 percent in Shanghai trading in the past year, compared with a 1.7 percent drop in the benchmark Shanghai Composite Index. Angang Steel Co., Angang's unit, is down 34 percent in the past year in Shenzhen.

The government plans to invest 800 billion yuan ($121 billion) to build 6,000 kilometers (3,700 miles) of high-speed rail lines by 2012 to carry its industrial expansion inland.

Going Overseas

Magang (Group) Holding Co., China's biggest maker of train wheels, plans to expand its steel cutting and equipment manufacturing business, Chairman Gu Jianguo said in an interview at the congress.

The nation's steel demand may increase 3.5 percent this year, compared with a projected 13.6 percent growth in India and 9.1 percent in the Central and South American regions, according to World Steel Association estimates in October.

"The government is encouraging the shift of surplus steel production capacity overseas," Wuhan General Manager Deng said March 7, without giving details on his overseas expansion plans.

Delong Holdings Ltd. (DLNG) a Singapore-listed Chinese steelmaker, is looking to build plants in Mexico and other countries, Chairman Ding Liguo said in an interview while attending the congress. Angang in 2010 signed an agreement to jointly build a $168 million reinforcing bar plant in Mississippi in the U.S.

Building plants overseas is "a way to reduce global steel trade frictions," said Xu Xiangchun, chief analyst with Mysteel Research Institute. Also, it "will be welcomed as a boost to local employment and taxes."

China's steel-product exports gained 73 percent last year to 42.6 million metric tons, customs data show. Apparent steel use in the U.S. will likely advance 9.4 percent this year, the World Steel Association said.

Rising Costs

Asian steelmakers face rising costs. Mills in the region may be forced to pay as much as 44 percent more for hard coking coal in the three months starting April 1 after rain shut mines in Australia, according to the median estimate of 11 analysts surveyed by Bloomberg News. Iron ore prices have jumped 29 percent in the past year, according to the Steel Index.

The nation's largest steelmakers, including Angang and Wuhan Steel, focus primarily on the production of ordinary steel. By moving into specialty products, the larger mills will compete against companies like Xining Special Steel Co. and Shandong Jinling Mining Co.

Xining Special had gross profit margin of 14.65 percent in 2009, compared with 9.68 percent for Baoshan Iron & Steel Co., the biggest-listed Chinese steelmaker, according to data compiled by Bloomberg.

"We're studying to improve our product mix during the 12th Five-Year Plan," which starts this year, Angang's Zhang told reporters on March 5 at the congress. "We have been struggling to make profit at the home market. This five-year period will be our last chance to survive."

(By bloomberg)

Iron Ore-Spot prices steady in India, China; steel demand eyed

Thu Mar 10, 2011 6:51am GMT
* Iron ore indexes at two-month lows; China imports slow
* Port Hedland sees 16 pct dfrop in shipments
* Stockpiles, steel demand eyed for signs market turning positive

SINGAPORE, March 10 (Reuters) - Steel prices extended losses in China on Thursday, while spot iron ore was steady to lower at around $180 a tonne as traders watched for signs of a turnaround in steel demand that would also herald a rally in ore prices.

Spot Indian fines around 63-63.5 percent iron were quoted at around $180 a tonne by consultancy Mysteel. By 0618 GMT, the 62 percent March iron ore futures contract on the Indian Commodity Exchange was 8,105 rupees ($180) per tonne, up 1.50 rupees.

Platts 62 percent iron ore benchmark IODBZ00-PLT fell $1 to $175 a tonne on Wednesday, extending its losing streak to a 15th consecutive session.

The index, widely used by global miners in setting quarterly contract prices, has lost 9.3 percent since hitting a record high of $193 in mid-February as demand from top iron ore buyer China slowed last month.

But the Steel Index's 62 percent gauge .IO62-CNI=SI was unchanged at $171.60 but Metal Bulletin's index .IO62-CNO=MB dropped $1.30 to $171.95 and all three indexes are at their lowest levels since early January.

China's iron ore imports in January-February rose 22.6 percent from a year ago to 120 million tonnes, China's customs agency said in a statement on Thursday.

"(January) demand was strong and prices were rising just because of supply issues in Brazil and Australia, and some materials (due in February) were brought forward to January," said Graeme Train, analyst with Macquarie in Shanghai.

China imported a record 68.97 million tonnes of the raw material in January, suggesting the volume tumbled to 51.03 million tonnes in February, according to Reuters calculations.

The price of ore has been in a steady decline for around three weeks on reduced Chinese appetite for imports due to high prices and a lacklustre steel market.

Shanghai's most-active steel rebar futures contract for October, fell 1.7 percent to 4,688 yuan a tonne and earlier dipped to 4,683 yuan, its weakest since mid November.

Iron ore shipments from Australia's Port Hedland fell 16 percent in February to 12.85 million tonnes from 15.33 million tonnes in January, according to port authority figures.

Shipments to China fell to 9.03 million tonnes in February from 9.97 million tonnes in January, the data showed.

Exports from India's largest port of Mormugao also dropped last month, falling 4.2 percent from a year earlier to 4.5 million tonnes.

Analysts said that suggested comparatively weaker import data for March too, with Chinese buyers meeting more of their needs from stockpiles of imported ore ashore at Chinese ports, currently standing near record highs, above 80 million tonnes.

"If you include floating stocks, inventories have been falling since mid January," Macquarie's Train said.

He noted the weakness in recent weeks in iron ore and worries about falling steel prices had made mills cautious, but added: "Once you start to see steel end use pick up, it will translate into a rapid recovery in ore prices."

(Reporting by Nick Trevethan; Additional reporting by Rujun Shen; Editing by Ed Lane, sourced :Thomson Reuters)

Angang Construction Wins 710M Yuan Russian Contract

Thur,Mar10,2011
Angang Construction Consortium won a 710 million yuan contract from Russia's largest special steel factory, Chelyabinsk Iron and Steel Works, reports 163.com, citing a consortium filing.

The contract is to upgrade a 100-meter heavy rail production line, which requires 130,000 cubic meters of concrete, 16,000 tons of steel and 14,000 tons of banded steel. The upgrading will take eight months.

Angang Construction is the second largest state-owned steel supplier in China.

It established a joint venture with Stanko Group of the U.K. earlier and acquired USS Steel Processing Center through the joint venture.

Angang Construction won 950 million yuan worth of overseas contracts in 2010.

Shares of Angang Steel fell 1.23 percent to close at 8.06 yuan today.

(By Capitalvue)