Iron Ore-Spot seen ticking higher, China steel eyed

Tuesday, 07 February 2012

Iron ore may extend modest gains this week as more Chinese steel producers return to the spot market to stock up, but a sluggish domestic steel market is likely to cap any gains in price.Chinese steel prices have been largely steady so far this year with activity in the domestic construction sector, a heavy steel user, yet to fully resume.

"Construction activity is still low because it's still winter in the northern part of China and we only expect steel demand to return later this month or in March," said a Shanghai-based iron ore trader.Mirae Asset Securities said it was keeping its "underweight" stance on China's steel sector this year, particularly the large state-owned steel mills."The structural driver of steel demand - urbanization - remains a valid long-term call, but it may halt in 2012 if the central government continues its crackdown on house prices," the brokerage said in a note.

China's slack steel demand meant a slow start for iron ore this year, which gained a modest 3.5 percent versus a more than 12 percent rise for copper, another key construction material.The most-traded May rebar contract on the Shanghai Futures Exchange has risen 3 percent so far this year, closing nearly flat at 4,330 yuan ($690) a tonne on Monday.Iron ore with 62 percent iron content rose 0.1 percent to $143.30 a tonne on Friday, according to the Steel Index, its highest level since Nov. 22.

"Iron ore prices could rise further this week with some more mills going back to the market and traders taking positions," said the Shanghai trader.Offer prices for Australian ore in China rose by at least a dollar on Monday, with 61.5-grade Pilbara iron ore fines quoted at $142-$144 a tonne, cost and freight, and 58-grade Yandi fines at $130-$132, said industry consultancy Umetal. Indian 63.5/63-grade fines were offered at $148-$151 a tonne, up $2 from Friday, said Umetal.

Traders are eyeing another tender by global miner BHP Billiton due to close later on Monday, particularly with prices moving higher at recent tenders.BHP last sold Yandi fines at $130.5 a tonne, C&F on Friday, up from $130 on Thursday, traders said.But a sizeable amount of iron ore at Chinese ports, which is readily available and which buyers can buy in smaller tonnages unlike fresh spot cargoes, may limit appetite for more imports, traders said.

Stockpiles of imported iron ore at major Chinese ports reached 101.49 million tonnes last week, with shipments from the three biggest exporters -- Australia, Brazil and India -- rising, Chinese consultancy Mysteel said on Friday. (sourced Reuters)

Bangladesh steel rebar makers incur BDT 600 million loss a day

Friday, 04 Nov 2011

Bangladesh steel product makers Wednesday said that one day's production loss now comes to BDT 600 million because of staggered gas supply at the country's prime rod manufacturing hub in Chittagong.

They said steel makers in Sitakunda and Baizid belts, nearly 250 kilometres away from Dhaka and just 15 kilometres from Chittagong Port manufacture around 10,000 tonnes a day.

The gas distribution entity Karnaphuli Gas Distribution Company began gas staggering three days a week for the industrial belt on October 26. The manufacturers supply nearly cent per cent of quality mild steel rod to meet the country's requirements. Besides, on an average they supply 70% of total steel requirements of the country.

The major steel players in the belt are BSRM, AKS, RSRM, KSRM, SARM, GPH Ispat, Baizid Steel, Islam Steel which produce over 5000 tonnes of steel products a day. The other re-rolling mills numbering 40 plus produce nearly another 5000 tonnes, industry people said.

Mr Alihussain Akberali chairman and managing director of the country's largest steel maker BSRM Group said that "We estimate that production losses have reached BDT 600 million a day as all major players produce nearly 10,000 tonnes of steel products a day.”

Mr Alihussain Akberali hinted that the gas staggering would create shortage of MS products during its peak time leading to rise in the prices of key construction materials.

He said those who earlier converted their plants into furnace oil system, but kept it on hold, would raise their production cost. He added that "I think an additional BDT 1700 per tonne would be required if any rod manufacturer engages in production through furnace oil.”

Many millers said they would be forced to declare lay-off if the gas staggering continues for a few more days.

Head of Marketing and Production Development of the BSRM Group of Companies Mr Firoze has said they have two major re rolling plants in Chittagong in the Fouzderhat and Nasirabad industrial areas and production at both the units has reduced by 45% due to gas staggering. He said that "This will result in the hike of prices of rod, angle, channel and other steel products and the capital city will be most affected as flyovers and other major infrastructures in Dhaka are using 100% steel products made by the major steel plants of Chittagong.”

(Sourced from FE)

ArcelorMittal Kryvyi Rih’s rebar used in construction of new stadium in Lviv

Wednesday, 02 November 2011

20,000 mt of reinforcing bar from Ukrainian steelmaker ArcelorMittal Kryvyi Rih, subsidiary of global steel giant ArcelorMittal, have been used for the construction of the new sports complex, Arena Lviv, in Lviv, Ukraine. Several matches in the Euro 2012 football tournament will be held at the stadium. Rebar of standard sizes (with diameters 8, 10, 12, 32 mm) from ArcelorMittal Kryvyi Rih were used to reinforce concrete structures of the stadium.

During the preparations for Euro 2012, ArcelorMittal Kryvyi Rih products have also been used in the construction of key facilities in Ukraine such as Lviv airport, the new terminal of the Boryspil international airport in Kiev and the National Sports Complex in Kiev.

Tags: rebar , Ukraine , ArcelorMittal , longs , CIS , steelmaking , construction , consumption
sourced: steelorbis

US steel imports down 5 percent in July

Thursday, 25 August 2011

The American Iron and Steel Institute (AISI) reported Wednesday that based on preliminary US Census Bureau data the US imported 2,584,000 net tons (nt) of steel in July, including 2.06 million nt of finished steel--down 5 percent and 4 percent, respectively, from June final data.

Despite the overall decline, hot rolled sheet imports were up 43 percent in July compared to June and hot dipped galvanized sheet and strip imports increased 11 percent. Meanwhile, rebar imports were up 40 percent year-to-date in July, hot rolled bar imports rose 35 percent and imports of oil country goods jumped 32 percent.

Annualized total and finished steel imports in 2011 would be 29.5 million nt and 22.5 million nt, respectively, up 23 percent and 20 percent compared to 2010. Finished steel import market share in July was an estimated 23 percent and is also 23 percent year-to-date.

In July, the largest volumes of finished steel imports from offshore were from South Korea (299,000 nt, down 7 percent), China (155,000 nt, down 4 percent), Japan (138,000 nt, up 11 percent), Australia (104,000 nt, up 167 percent) and Germany (86,000 nt, up 39 percent).

For the first seven months of 2011, the largest offshore suppliers have been South Korea (1,809,000 nt, up 67 percent), Japan (895,000 nt, up 20 percent) and China (716,000 nt, up 53 percent).

(sourced steelorbis)

Asia Steel-Spot prices steady, eyeing Japan quake

Thu Mar 17, 2011 7:29am GMT

* Steelmakers and traders eyeing Japan quake
* Steel demand likely to take longer time to recover
By Ruby Lian and David Stanway

SHANGHAI, March 17 (Reuters) - Spot steel prices in China remained steady this week, with traders still assessing the impact of the Japanese earthquake on the steel market, as well as a move by top steel mills to keep prices for April unchanged.

Rebar, mostly used in the construction sector, rebounded modestly to 4,580-4,590 yuan ($697-698) per tonne on Thursday, down 10 yuan from last Thursday after slipping nearly 2 percent at the beginning of the week, industry consultancy Mysteel said.

The catastrophic earthquake and tsunami in Japan have further weighed on the global steel market, adding to concern about weak demand brought about by tighter credit and lower iron ore prices.

"Most market players are still assessing the aftermath of Japan's earthquake, while steel mills are watching the crisis closely and are hesitant to make offers, although prices have bounced back slightly," said Bill Chen, a senior trader with Hong Kong-based Smart Timing Steel Ltd.

Key Japanese steelmakers have halted operations at some of their facilities since Monday because of power outages brought about by the quake.

Luo Bingsheng, former vice-chairman of the China Iron & Steel Association and now an advisor, said at an industry conference on Thursday that Japan's post-quake reconstruction would eventually lift global steel prices and benefit Chinese steel exports.

His speech was made available on the organiser's website (Umetal.com).

The most active rebar contract on the Shanghai Futures Exchange recovered this week to 4,817 yuan per tonne, up 2.9 percent from last Thursday.

DEMAND RECOVERY STILL SLOW

Two of China's biggest steelmakers, Baoshan Iron & Steel Co Ltd and Wuhan Iron & Steel Co Ltd said this week that they would keep their main product prices stable for April, reflecting their concern about tepid demand and high stockpiles.

Demand is expected to pick up in the second quarter as end users normally return to the market to restock, but government moves to further tighten liquidity are likely to curb the recovery.

"We believe steel prices will stay at a low level for a month or two -- a rebound is unlikely because of strong supply and lukewarm demand," said Henry Liu, a commodities analyst with Mirae Asset in Hong Kong.

CISA's Luo also said the inventories of 78 medium-sized and large steel mills surged 20 percent over the first two months of the year, and some steel mills would likely suffer losses.

Inventory building by end users was unlikely to continue, and even if steel prices rebounded they were not expected to return to their February high, Liu said.

In its monthly market report published on Thursday, CISA said stockpiles remained high going into March, and that prices would be put under further pressure as a result of still excessive output levels and increases in raw material supplies. $1=6.571 yuan) (Editing by Chris Lewis, Reuters)

Iran produces 11 million tonnes of crude steel in 11 months

Wednesday, 16 Mar 2011 |steel orbis

Iran's Ministry of Industries and Mines has announced that state owned steel plants in Iran produced 10.752 million tonnes of crude steel in the first 11 months of the current Iranian year up 11% YoY.

In the same period, Iran's state owned steel plants also produced 1.845 million tonnes of beams, 3.013 million tonnes of rebar, 5.338 million tonnes of hot rolled coil and about 401,000 tonnes of other finished steel products.

Turkish mills cut steel production on low demand

Tuesday, 01 Mar 2011

Reuters reported that Turkish mills cut steel production as political unrest in North Africa and the Middle East continued to depress demand for steel billet and rebar.

As per report, Turkish producers were offering steel billet at USD 640 per tonne to USD 650 per tonne and rebar at USD 680 FOB but no major sales were achieved at this level.(sourced:Reuters)

Siemens to provide rod outlets for wire rod mills of Lianfeng Steel

Tuesday, 22 Feb 2011

Lianfeng Steel Co Ltd based in Jiangsu Province, China has contracted for the supply of rod outlets for new single strand rod mills that will be located in adjacent mill bays in the same building complex in Yonglian Industrial Park in Zhangjiagang City.

The new plant will enable the steelmaker to enter markets for higher quality products. Hot commissioning, scheduled in four phases will begin in late 2011.

The new equipment will enable Lianfeng Steel to produce 5 to 25 mm plain rod and 6 to 16 mm rebar. Products will include quality carbon, carbon structure, low alloy, cold heading spring, bearing steels and welding wire. Depending on the product mix, each strand will produce approximately 700,000 tons per strand per year for both domestic and overseas markets.

The scope of supply for each strand is for engineering and related equipment from the exit of the last main mill train stand through to the reform station, which includes a Morgan horizontal/vertical pre finishing mill, a Morgan Vee pre finishing mill, an eight stand Morgan No Twist mill, a four stand Morgan Rod Reducing/Sizing Mill and pinch rolls and laying head arrangement for each strand.

The contract also includes mechanical, fluid, electrical and proprietary control systems, as well as site supervision for installation and commissioning for both rod outlet strands.

Lianfeng Steel is a subsidiary of the Jiangsu Yonggang Group Co Ltd an integrated iron and steel company. Jiangsu Yonggang produces five million tons per year each of steel and rolled steel.

SHFE rebar reflects buoyant mood in China on opening

Wednesday, 09 Feb 2011
Shanghai steel rebar futures edged up to a record as Chinese markets reopened after a week-long Lunar New Year holiday.
The most active rebar contract for October delivery was up 0.3% at CNY 5,140 per tonne by 0106 GMT, after touching an all time top of CNY 5,150 earlier.(sourced from Reuters)

Azarbaijan Steel posts slight increase in rebar output

Monday, 07 February 2011 15:46:38 (GMT+2)
Iranian steelmaker Azarbaijan Steel produced 373,000 mt of rebar in the first nine months of the current Iranian year (started March 21, 2010), showing just a slight increase from its rebar output of 371,000 mt in the corresponding period of the last Iranian year - according to the Iranian Mines and Mining Industries Development and Renovation Organization (IMIDRO).Tags: rebar , longs , Iran , Middle East , steelmaking , production

CHINA STEEL WRAP: rebar record gains

Shanghai 28 January 2011
+ SHFE May rebar down 0.3% w-o-w at 4,936 yuan ($751)
+ SSEC April HRC up 0.9% w-o-w at 4,883 yuan ($743)
+ Spot iron ore unchanged at $188-191 cfr Shanghai rebar ended the week lower despite hitting record highs on Monday and Tuesday, as profit taking and property curbs erased earlier gains. The dominant May rebar contract closed at 4,936 yuan per tonne on Friday, up a slight 6 yuan from Thursday but down 0.3%. For information visit www.metalbulletin.com