Wed Apr 6, 2011 4:24pm GMT
* Interest in steel swaps increases - FIS
* CME launches new steel swaps
* LME also considers new steel contract
By Silvia Antonioli
LONDON, April 6 (Reuters) - Cargill traded the first over-the-counter steel scrap swap on Wednesday, as interest in steel derivatives soars, said Freight Investor Services (FIS), which brokered the deal.
Privately held food producer Cargill CARGIL.UL CARG.UL traded a steel scrap swap tied to May delivery of 1,000 tonnes of material to Turkish ports at $422 a tonne.
Its counterparty was a European metals trading company which refused to be named.
"We are starting to see a lot of people getting involved," said Sam Mehew, steel derivatives broker at FIS.
To cash in on increasing interest from industry participants and financial investors in steel derivatives, the Chicago Mercantile Exchange Group launched three steel swap contracts on Tuesday.
The London Metals Exchange said it was also considering launching some new steel contracts.
(sourced:Thomson Reuters)
Showing posts with label steel. Show all posts
Showing posts with label steel. Show all posts
Wednesday, April 6, 2011
Thursday, March 24, 2011
POSCO lifts sales target on Japan order
Thu,Mar24, 2011 |Source:Reuters
South Korea's top steelmaker POSCO said on Thursday it had revised its sales volume target up by 1 million tonnes and will raise output to meet orders from clients in disaster-hit Japan.
Hwang Eun-Yeon, executive vice president at POSCO, also told the Reuters Global Mining and Steel Summit that the world's third largest steelmaker is finding it hard to fully pass on USD 160-USD 180 per tonne of increased costs to clients in the second quarter.
"We are aiming to meet the requests (from Japan) by raising output, although we cannot meet all," Hwang said, adding that it aims to sell more than 35 million tonnes of steel products this year from its previous target of 34 million tonnes.
South Korea's top steelmaker expects to receive a minimum of 1.5 million tonnes of steel requests from Japanese clients this year after Japan's worst quake on record, Hwang said.
Japanese steel mill Nippon Steel, JFE Steel and Sumitomo Metal Industries said on Tuesday that their quake-hit furnaces were resuming operations after being hit by March 11 earthquake and tsunami.
Shares of Korean steelmakers including POSCO, whose leading shareholders include Berkshire Hathaway Inc, rallied after the quake, on expectations that they would benefit from reduced shipments from Japan at home and the Asian markets.
Shares of POSOC closed 0.4% lower at 497,500 won on Thursday, underperforming the broader market.
Hard to fully pass on cost rise to clients
Asked how much and when POSCO would raise prices, Hwang said: "We need to raise steel prices by 200,000 won (USD 178.3) per tonne due to rising costs, but I don't think we can raise that much." POSCO is considering lifting prices in early or middle part of April-June period, he added.
Analysts ranged POSCO's possible price hikes at 100,000 won through 150,000 won, while Hwang said "100,000 won was too low."
Lee Won-jae, an analyst at SK Securities, said: "Even if POSCO were to raise more than 100,000 won, it would be difficult to maintain such prices due to the gap with imports from Japan and China. The domestic market is driven by buyers, not sellers."
POSCO has held local steel prices flat since it hiked in June 2010 for third-quarter sales. For the October-December quarter last year, POSCO posted lower-than-expected profit because of its failure to pass on surging costs to customers.
South Korea's second-largest steelmaker Hyundai Steel said on Tuesday it needs to hike major steel product prices no later than early April. Two leading Chinese steelmakers increased prices for the third month in a row for March, before keeping them unchanged for April.
Hwang said Asia's steel demand is seen healthy, driven by expected demand as Japan moves to repair quake-related damages, adding that China's recent efforts to tame inflation through tighter monetary policy were "not too worrisome."
"The quake dampens Japan's steel demand in the short term, but eventually the demand will jump because a large amount of industrial materials are in need for reconstruction," he said.
Tags: POSCO, steelmaker, South Korea, Japan, Hwang Eun-Yeon
Hwang Eun-Yeon, executive vice president at POSCO, also told the Reuters Global Mining and Steel Summit that the world's third largest steelmaker is finding it hard to fully pass on USD 160-USD 180 per tonne of increased costs to clients in the second quarter.
"We are aiming to meet the requests (from Japan) by raising output, although we cannot meet all," Hwang said, adding that it aims to sell more than 35 million tonnes of steel products this year from its previous target of 34 million tonnes.
South Korea's top steelmaker expects to receive a minimum of 1.5 million tonnes of steel requests from Japanese clients this year after Japan's worst quake on record, Hwang said.
Japanese steel mill Nippon Steel, JFE Steel and Sumitomo Metal Industries said on Tuesday that their quake-hit furnaces were resuming operations after being hit by March 11 earthquake and tsunami.
Shares of Korean steelmakers including POSCO, whose leading shareholders include Berkshire Hathaway Inc, rallied after the quake, on expectations that they would benefit from reduced shipments from Japan at home and the Asian markets.
Shares of POSOC closed 0.4% lower at 497,500 won on Thursday, underperforming the broader market.
Hard to fully pass on cost rise to clients
Asked how much and when POSCO would raise prices, Hwang said: "We need to raise steel prices by 200,000 won (USD 178.3) per tonne due to rising costs, but I don't think we can raise that much." POSCO is considering lifting prices in early or middle part of April-June period, he added.
Analysts ranged POSCO's possible price hikes at 100,000 won through 150,000 won, while Hwang said "100,000 won was too low."
Lee Won-jae, an analyst at SK Securities, said: "Even if POSCO were to raise more than 100,000 won, it would be difficult to maintain such prices due to the gap with imports from Japan and China. The domestic market is driven by buyers, not sellers."
POSCO has held local steel prices flat since it hiked in June 2010 for third-quarter sales. For the October-December quarter last year, POSCO posted lower-than-expected profit because of its failure to pass on surging costs to customers.
South Korea's second-largest steelmaker Hyundai Steel said on Tuesday it needs to hike major steel product prices no later than early April. Two leading Chinese steelmakers increased prices for the third month in a row for March, before keeping them unchanged for April.
Hwang said Asia's steel demand is seen healthy, driven by expected demand as Japan moves to repair quake-related damages, adding that China's recent efforts to tame inflation through tighter monetary policy were "not too worrisome."
"The quake dampens Japan's steel demand in the short term, but eventually the demand will jump because a large amount of industrial materials are in need for reconstruction," he said.
Tags: POSCO, steelmaker, South Korea, Japan, Hwang Eun-Yeon
Friday, March 11, 2011
BlueScope Steel Restructure
Fri,March11, 2011The Chief Executive of Bluescope's Port Kembla steelworks says they'll know more about the impact of the companies restructure in the coming months.
Noel Cornish announced his retirement as the company revealed its plans to merge its Australian and New Zealand businesses.
Mr Cornish will step down in August and he'll be replaced by Mark Vasella who has been the President of Bluescope North America.
Mr Cornish says he'll remain involved as a member of Bluescopes board of Directors, and he admits there could be redundancies.
"Over the course of the next few months we will get more information about that and of course we will be very open and transparent about it ..let's wait and see what the detail shows and just reflect again that the way bluescope steel goes about these things that we try to have the utmost respect for people as we go through these processes." He said.
Noel Cornish says Labor's proposed carbon price will spell the end of steel manufacturing in Australia.
He says if its adopted in Australia and international competitors don't bear the same cost then Australian manufactured steel will become uncompetitive and imports will outweigh exports.
He says Labor's Carbon policy is fundamentally flawed because there will always be demand for steel.
"Australia will continue to use steel so whether its manufacutured here in australia or manufactured overseas we will still continue to use it so what we'll find is having hollowed out manufacturing in australia we will have no improvement in global greehouse gas emissions" He said.
The AWU's Port Kembla Branch Secretary, Andy Gillespie says Bluescope Steel has already cut jobs too far and production levels will be affected if more jobs go.
"I don't see there's any room for redundancies on the shop floor if the current production remains the same with the current production methods the merger of bluescope's 3 divisions i don't see affecting people on the shop floor it may however affect people higher up." He said.
Noel Cornish announced his retirement as the company revealed its plans to merge its Australian and New Zealand businesses.
Mr Cornish will step down in August and he'll be replaced by Mark Vasella who has been the President of Bluescope North America.
Mr Cornish says he'll remain involved as a member of Bluescopes board of Directors, and he admits there could be redundancies.
"Over the course of the next few months we will get more information about that and of course we will be very open and transparent about it ..let's wait and see what the detail shows and just reflect again that the way bluescope steel goes about these things that we try to have the utmost respect for people as we go through these processes." He said.
Noel Cornish says Labor's proposed carbon price will spell the end of steel manufacturing in Australia.
He says if its adopted in Australia and international competitors don't bear the same cost then Australian manufactured steel will become uncompetitive and imports will outweigh exports.
He says Labor's Carbon policy is fundamentally flawed because there will always be demand for steel.
"Australia will continue to use steel so whether its manufacutured here in australia or manufactured overseas we will still continue to use it so what we'll find is having hollowed out manufacturing in australia we will have no improvement in global greehouse gas emissions" He said.
The AWU's Port Kembla Branch Secretary, Andy Gillespie says Bluescope Steel has already cut jobs too far and production levels will be affected if more jobs go.
"I don't see there's any room for redundancies on the shop floor if the current production remains the same with the current production methods the merger of bluescope's 3 divisions i don't see affecting people on the shop floor it may however affect people higher up." He said.
Thursday, March 10, 2011
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)
Thursday, March 3, 2011
Chinese steel industry gains profit margin of less than 3pct
Thursday,03 Marh2011 | My Steel
According to Mr Deng Qilin GM of Wuhan Iron & Steel Group Co Ltd, steel industry profitability decreased last year and large and medium steel enterprises average sales profit margin witness only 2.91% last year far lower than national industries average profit margin of 6%.
As for the decreasing profitability, Mr Deng believed that it is the result of internal causes coupled with external causes
1. China steel supply and demand conflict is prominent due to the large amount. China crude steel output topped 0.63 billion tonnes last year, which surpassed requirement of the national economy. The oversupply in domestic steel market advanced decrease of steel prices
2. The international iron ore prices increase squeezed steel industry profit space. Deng said that procurement costs of imported iron ore, coking coal and other raw materials has been continuously increasing since the beginning of last year. China imported iron ore reached over 0.6 billion tonnes while the prices rise generated loss of several CNY 100 billion in steel industry every year.
Confronted with great pressure of cost increase, Mr Deng said that the national steel industry should seriously put into practice of steel polices including industry revitalization plan and adjust product structure against market fluctuation.
Mr Deng Qilin WISCO GM officially stepped down the position of president of China Iron & Steel Association in February this year. As the president of CISA for two years, Mr Deng led China steel enterprises successfully against international economy crisis.
As for the decreasing profitability, Mr Deng believed that it is the result of internal causes coupled with external causes
1. China steel supply and demand conflict is prominent due to the large amount. China crude steel output topped 0.63 billion tonnes last year, which surpassed requirement of the national economy. The oversupply in domestic steel market advanced decrease of steel prices
2. The international iron ore prices increase squeezed steel industry profit space. Deng said that procurement costs of imported iron ore, coking coal and other raw materials has been continuously increasing since the beginning of last year. China imported iron ore reached over 0.6 billion tonnes while the prices rise generated loss of several CNY 100 billion in steel industry every year.
Confronted with great pressure of cost increase, Mr Deng said that the national steel industry should seriously put into practice of steel polices including industry revitalization plan and adjust product structure against market fluctuation.
Mr Deng Qilin WISCO GM officially stepped down the position of president of China Iron & Steel Association in February this year. As the president of CISA for two years, Mr Deng led China steel enterprises successfully against international economy crisis.
Sunday, February 27, 2011
SAIL chairman welcomes rail budget
Sunday, 27 Feb 2011
Mr CS Verma chairman of Steel Authority of India Limited has welcomed the rail budget
He said “No direct increase in freight is good news for the steel industry, because for every tonne of steel, around 4 tonnes of material is transported, including raw materials and finished goods. Substantial increase in raw material prices over the last few months has already put pressure on the margins of steel companies. Therefore no direct freight hike comes as a much-needed breather.”
He said “In addition, laying of new and modified rail lines, procurement of wagons and related investments in infrastructure are all positive steps with reference to the steel industry.”
Mr Verma added that “We welcome the well defined long term targets announced in the Rail Budget such as laying of 25,000 kilometers of new rail lines in the next 10 years, including plans to complete 1,000 kilometers of new lines during FY'12. Besides, the decision to set up 5 state of the art wagon factories in JV/PPP mode will go a long way in adding to transport infrastructure of the country.”
SAIL is an active partner in the growth of the Railways in the true sense, since the company’s share in total rail freight revenue is around 8%.(source:India InfolineNews Service)
He said “No direct increase in freight is good news for the steel industry, because for every tonne of steel, around 4 tonnes of material is transported, including raw materials and finished goods. Substantial increase in raw material prices over the last few months has already put pressure on the margins of steel companies. Therefore no direct freight hike comes as a much-needed breather.”
He said “In addition, laying of new and modified rail lines, procurement of wagons and related investments in infrastructure are all positive steps with reference to the steel industry.”
Mr Verma added that “We welcome the well defined long term targets announced in the Rail Budget such as laying of 25,000 kilometers of new rail lines in the next 10 years, including plans to complete 1,000 kilometers of new lines during FY'12. Besides, the decision to set up 5 state of the art wagon factories in JV/PPP mode will go a long way in adding to transport infrastructure of the country.”
SAIL is an active partner in the growth of the Railways in the true sense, since the company’s share in total rail freight revenue is around 8%.(source:India InfolineNews Service)
Friday, February 25, 2011
Indian Railways plans to use alloys in wagons to cut costs
Feb23, 2011, 12.36PM IST,
By Anuradha Himatsingka,ET Bureau
By Anuradha Himatsingka,ET Bureau
KOLKATA: Indian Railways plans to introduce new wagons that are cheaper by a fifth and carry almost the same weight as the existing stainless steel ones.
However, the railways will seek inputs from all stakeholders before taking a final decision on the use of 'high alloy mild steel' for manufacture of covered wagons, a railways official said.
This steel is expected to lower the production cost by about Rs 6-7 lakh per wagon, which costs around Rs 35 lakh. A wagon built using mild steel willl be able to carry the same weight as that by a stainless steel one, which is approximately 70.8 tonne.
The official said, "When we decided to go for stainless steel wagons some two years ago, the pay-to-tare-ratio' (the load factor) improved. But the procurement cost per wagon nearly doubled and adversely impacted Indian Railways' (IR) margins."
The Railways had released orders for procuring 18,000 wagons for the financial year 2010-11.
A senior industry player said, "The difference in procurement cost is substantial and will have a positive impact on IR's profits."
Half the wagons produced in the country are covered. Uncovered wagons, or open wagons, are prone to corrosion and so have a lower life span. "It is, therefore, prudent to use stainless steel for uncovered wagons. For covered wagons, we have been trying to find out ways to lower manufacturing costs. We finally zeroed in on high alloy mild steel," the source said. Steel producers have more or less agreed to supply this steel to wagon manufacturers. (via ET )
However, the railways will seek inputs from all stakeholders before taking a final decision on the use of 'high alloy mild steel' for manufacture of covered wagons, a railways official said.
This steel is expected to lower the production cost by about Rs 6-7 lakh per wagon, which costs around Rs 35 lakh. A wagon built using mild steel willl be able to carry the same weight as that by a stainless steel one, which is approximately 70.8 tonne.
The official said, "When we decided to go for stainless steel wagons some two years ago, the pay-to-tare-ratio' (the load factor) improved. But the procurement cost per wagon nearly doubled and adversely impacted Indian Railways' (IR) margins."
The Railways had released orders for procuring 18,000 wagons for the financial year 2010-11.
A senior industry player said, "The difference in procurement cost is substantial and will have a positive impact on IR's profits."
Half the wagons produced in the country are covered. Uncovered wagons, or open wagons, are prone to corrosion and so have a lower life span. "It is, therefore, prudent to use stainless steel for uncovered wagons. For covered wagons, we have been trying to find out ways to lower manufacturing costs. We finally zeroed in on high alloy mild steel," the source said. Steel producers have more or less agreed to supply this steel to wagon manufacturers. (via ET )
Wednesday, February 23, 2011
Russia scrap exports double in January
Wednesday, 23 Feb 2011
According to preliminary data, in January this year Russia exports of scrap and ferrous metal waste doubled compared to the same period last year amounting to 264,200 tonnes.
Russia imported 200 tonnes of scrap in January this year, while in January 2010 there were no imports of scrap into the country. In 2010, Russia scrap exports increased by 1.5 times to 5.5 million tonnes while its imports went up by 2.4 times to 10,600 tonnes both compared to 2009.
Russian scrap exports are directed mainly to Turkey, Spain, Greece, the Netherlands and South Korea.
(Sourced:www.steelorbis.com)
According to preliminary data, in January this year Russia exports of scrap and ferrous metal waste doubled compared to the same period last year amounting to 264,200 tonnes.
Russia imported 200 tonnes of scrap in January this year, while in January 2010 there were no imports of scrap into the country. In 2010, Russia scrap exports increased by 1.5 times to 5.5 million tonnes while its imports went up by 2.4 times to 10,600 tonnes both compared to 2009.
Russian scrap exports are directed mainly to Turkey, Spain, Greece, the Netherlands and South Korea.
(Sourced:www.steelorbis.com)
Saturday, February 19, 2011
WTO issues ruling on China export restraints
Friday,Feb18,2011
* US, EU, Mexico filed case against China in 2009
* Ruling could set precedent for China rare earth curbs
* Decision expected to be made public by early summer (Updates throughout)
WASHINGTON, Feb 18 (Reuters) - The World Trade Organization on Friday issued a confidential preliminary ruling in a landmark case against China's export restrictions on raw materials used to manufacture steel, aluminum and chemical products.
The United States, European Union and Mexico launched the case in 2009, complaining that Chinese export restrictions on minerals such as bauxite and magnesium discriminated against foreign manufacturers and gave an unfair advantage to domestic producers.
Beijing has argued it needed to restrict exports of the raw materials for environmental reasons.
"Under WTO rules, this interim report is confidential and we cannot comment on its contents at this time," said Nefeterius McPherson, a spokeswoman for the U.S. Trade Representative's Office.
"The report will be made public when it is circulated to WTO members. We currently expect the final report to be circulated sometime in late spring or early summer of 2011," McPherson said.
The United States, EU and Mexico argue that China's export curbs violated both general WTO rules and specific commitments that Beijing made when it joined the world trade body in 2001.
The case does not cover China's export restrictions on rare earth minerals used in smart phones, electric car motors and high-tech industrial equipment which have also raised concern in the United States, EU and Japan.
McPherson said there was still a possibility of the United States filing a WTO challenge on that front.
"We have been and remain very concerned about China's systemic use of export restraints," she said.
A former WTO appellate body judge said the ruling will be precedent-setting.
"If the United States prevails in this dispute it would be a very significant ruling related to increasingly widespread phenomenon of export restrictions in world trade," said James Bacchus, now at Greenberg Traurig in Washington.
If China wins, then "other kinds of export restrictions imposed by China and other countries may be protected by environmental defenses as well," Bacchus said.
China argues that it must restrict the production and export of the raw materials in the WTO dispute and rare earths to protect the environment and conserve its own resources.
(Reporting by Doug Palmer; Editing by Vicki Allen,sourced:Thomson Reuters)
* US, EU, Mexico filed case against China in 2009
* Ruling could set precedent for China rare earth curbs
* Decision expected to be made public by early summer (Updates throughout)
WASHINGTON, Feb 18 (Reuters) - The World Trade Organization on Friday issued a confidential preliminary ruling in a landmark case against China's export restrictions on raw materials used to manufacture steel, aluminum and chemical products.
The United States, European Union and Mexico launched the case in 2009, complaining that Chinese export restrictions on minerals such as bauxite and magnesium discriminated against foreign manufacturers and gave an unfair advantage to domestic producers.
Beijing has argued it needed to restrict exports of the raw materials for environmental reasons.
"Under WTO rules, this interim report is confidential and we cannot comment on its contents at this time," said Nefeterius McPherson, a spokeswoman for the U.S. Trade Representative's Office.
"The report will be made public when it is circulated to WTO members. We currently expect the final report to be circulated sometime in late spring or early summer of 2011," McPherson said.
The United States, EU and Mexico argue that China's export curbs violated both general WTO rules and specific commitments that Beijing made when it joined the world trade body in 2001.
The case does not cover China's export restrictions on rare earth minerals used in smart phones, electric car motors and high-tech industrial equipment which have also raised concern in the United States, EU and Japan.
McPherson said there was still a possibility of the United States filing a WTO challenge on that front.
"We have been and remain very concerned about China's systemic use of export restraints," she said.
A former WTO appellate body judge said the ruling will be precedent-setting.
"If the United States prevails in this dispute it would be a very significant ruling related to increasingly widespread phenomenon of export restrictions in world trade," said James Bacchus, now at Greenberg Traurig in Washington.
If China wins, then "other kinds of export restrictions imposed by China and other countries may be protected by environmental defenses as well," Bacchus said.
China argues that it must restrict the production and export of the raw materials in the WTO dispute and rare earths to protect the environment and conserve its own resources.
(Reporting by Doug Palmer; Editing by Vicki Allen,sourced:Thomson Reuters)
Tuesday, February 15, 2011
Mechel re-starts Nerungrinskaya coal washing plant after accident
Tuesday, 15 Feb 2011
Mechel announced the re launching of the Nerungrinskaya washing plant at Yakutugol OAO, following the accident on December 26 which saw the collapse of three thickeners in the washing shop.
The washing plant's coking coal concentrate production equipment was started back upon February 10. Operations were resumed at the washing shop's second and third sections, which at full load will allow the plant to maintain pre accident levels of concentrate production. Repairs are ongoing at the shop's first section.
The Nerungrinskaya washing plant's re start was preceded by major repair works to eliminate the accident's after effects, restore steelwork, strengthen the thickeners' assembly and prepare the equipment for operation. (sourced:steelguru)
Tags:Mechel, Nerungrinskaya coal washing plant,accident, Yakutugol OAO, collapse, thickeners, coking coal concentrate production, steel, coal,
Mechel announced the re launching of the Nerungrinskaya washing plant at Yakutugol OAO, following the accident on December 26 which saw the collapse of three thickeners in the washing shop.
The washing plant's coking coal concentrate production equipment was started back upon February 10. Operations were resumed at the washing shop's second and third sections, which at full load will allow the plant to maintain pre accident levels of concentrate production. Repairs are ongoing at the shop's first section.
The Nerungrinskaya washing plant's re start was preceded by major repair works to eliminate the accident's after effects, restore steelwork, strengthen the thickeners' assembly and prepare the equipment for operation. (sourced:steelguru)
Tags:Mechel, Nerungrinskaya coal washing plant,accident, Yakutugol OAO, collapse, thickeners, coking coal concentrate production, steel, coal,
Monday, February 14, 2011
Budget update - Steel users want zero import duty on steel
Monday, 14 Feb 2011
The Indian small and micro steel industry has requested the government to cut down import duty to nil from 5% and also levy duty on HR coils to contain inflation.
All India Confederation of Small & Micro Industries Association President Mr Sudarshan Sareen said that “Steel manufacturers have increased prices by 30% in the last two months anticipating that Australia may hike the coke price in view of the recent floods that impacted its coal mines.”
Mr Sareen said that there is no reason for the Indian steel producers to effect a hefty INR 9,000 per tonne increase in prices in January and February 2011.
(sourced:PTI)
The Indian small and micro steel industry has requested the government to cut down import duty to nil from 5% and also levy duty on HR coils to contain inflation.
All India Confederation of Small & Micro Industries Association President Mr Sudarshan Sareen said that “Steel manufacturers have increased prices by 30% in the last two months anticipating that Australia may hike the coke price in view of the recent floods that impacted its coal mines.”
Mr Sareen said that there is no reason for the Indian steel producers to effect a hefty INR 9,000 per tonne increase in prices in January and February 2011.
(sourced:PTI)
Wednesday, February 2, 2011
Aperam on cost-cutting diet
Wed, February 2, 2011
Bloomberg reported that Aperam, the stainless steel unit spun off from ArcelorMittal last week, aims to cut costs by USD 250 million over two years, more than the USD 110 million still left to make under a previous plan.
Mr Bernard Fontana CEO of Aperam said that the company, already present in 32 countries, was open to making acquisitions in Asia, though it doesn't have anything specific to talk about at the moment. (sourced:bloomberg)
Tuesday, February 1, 2011
ArcelorMittal boosts Ukrainian steel output in 2010
January 31, 2011
Reuters reported that Ukraine No 1 steel mill, owned by ArcelorMittal, raised crude steel production in 2010 to 6.13 million tonnes from 5.04 million tonnes in 2009.
Rolled steel production rose to 5.41 million tonnes last year from 4.50 million, while pig iron output rose to 5.32 million from 4.42 million a year earlier.
Ukrainian industry officials said this month that local steel companies produced a total of 32.7 million tonnes of crude steel in 2010 but planned to increase output by about 6% in 2011 to 34.5 million tonnes.
Steel producers' union Metallurgprom forecast rolled steel output to rise to 32.8 million tonnes this year from 30.68 million in 2010, while pig iron output would jump to 28.9 million tonnes from 27.4 million.
But analysts said Ukraine's key export oriented steel sector, largely dependent on the situation on the world market, is unlikely to show a significant rise in output in 2011 due to unstable demand from abroad. (sourced:reuters)
Reuters reported that Ukraine No 1 steel mill, owned by ArcelorMittal, raised crude steel production in 2010 to 6.13 million tonnes from 5.04 million tonnes in 2009.
Rolled steel production rose to 5.41 million tonnes last year from 4.50 million, while pig iron output rose to 5.32 million from 4.42 million a year earlier.
Ukrainian industry officials said this month that local steel companies produced a total of 32.7 million tonnes of crude steel in 2010 but planned to increase output by about 6% in 2011 to 34.5 million tonnes.
Steel producers' union Metallurgprom forecast rolled steel output to rise to 32.8 million tonnes this year from 30.68 million in 2010, while pig iron output would jump to 28.9 million tonnes from 27.4 million.
But analysts said Ukraine's key export oriented steel sector, largely dependent on the situation on the world market, is unlikely to show a significant rise in output in 2011 due to unstable demand from abroad. (sourced:reuters)
Friday, January 14, 2011
Alpha Lifts 2011 Coking Coal Forecast on Australian Floods
Source :Bloomberg, by Mario Parker - Jan 14, 2011
Alpha Natural Resources Inc., the third-largest U.S. coal producer, lifted its 2011 forecast for coking coal because Australia’s worst flooding in 50 years may increase demand.
The company expects to ship between 13 million and 14.5 million tons of metallurgical coal, used to forge steel, up from an earlier forecast of 11.5 million to 13.5 million tons shipped, according to a statement today from Abingdon, Virginia- based Alpha.
Queensland supplies 50 percent of the world’s seaborne metallurgical coal, or about 140 million metric tons a year, according to Bank of America Merrill Lynch. The flooding in that region has affected an area larger than Texas and California combined.
“As a leading supplier and exporter of metallurgical coal in the United States, Alpha expects to benefit from the combination of a strong seaborne metallurgical coal market and increased metallurgical shipments,” Chief Executive Officer Kevin Crutchfield said in the statement.
Alpha fell $2.57, or 4 percent, to $61.43 as of 9:37 a.m. on the New York Stock Exchange. The shares have risen 26 percent in the year before today.
The company also said it expects its cost of coal sales for 2010 in the Eastern U.S. to be higher than earlier forecast. Alpha forecast the cost of coal sales to be as much as 7.9 percent higher, at $61.50 per ton, from its earlier expectation of as low as $57.
Alpha blamed poor rail service, bad weather, delayed export shipments and geology problems at its Emerald Mine near Waynesburg, Pennsylvania, for the lower operating results during the fourth quarter.
Alpha Natural Resources Inc., the third-largest U.S. coal producer, lifted its 2011 forecast for coking coal because Australia’s worst flooding in 50 years may increase demand.
The company expects to ship between 13 million and 14.5 million tons of metallurgical coal, used to forge steel, up from an earlier forecast of 11.5 million to 13.5 million tons shipped, according to a statement today from Abingdon, Virginia- based Alpha.
Queensland supplies 50 percent of the world’s seaborne metallurgical coal, or about 140 million metric tons a year, according to Bank of America Merrill Lynch. The flooding in that region has affected an area larger than Texas and California combined.
“As a leading supplier and exporter of metallurgical coal in the United States, Alpha expects to benefit from the combination of a strong seaborne metallurgical coal market and increased metallurgical shipments,” Chief Executive Officer Kevin Crutchfield said in the statement.
Alpha fell $2.57, or 4 percent, to $61.43 as of 9:37 a.m. on the New York Stock Exchange. The shares have risen 26 percent in the year before today.
The company also said it expects its cost of coal sales for 2010 in the Eastern U.S. to be higher than earlier forecast. Alpha forecast the cost of coal sales to be as much as 7.9 percent higher, at $61.50 per ton, from its earlier expectation of as low as $57.
Alpha blamed poor rail service, bad weather, delayed export shipments and geology problems at its Emerald Mine near Waynesburg, Pennsylvania, for the lower operating results during the fourth quarter.
Monday, January 3, 2011
Record high infrastructure investments to help boost Saudi steel output
A record high budget for 2011 announced by Saudi Arabia last week will boost domestic steel production as it allocates large funds for infrastructure projects, the Gulf Kingdom's largest bank said on Tuesday.
In 2010, Saudi Arabia's crude steel output was estimated at around 4.6 million tonnes, nearly 0.3 per cent of the world's total steel production of around 1,392 million, National commercial bank( NCB) said in a study.
The study, sent to Emirates 24/7, said the kingdom's steel production this year was nearly eight per cent higher than in 2009.
Citing data by the 66-nation World Steel Association, the report showed total global steel output stood at 114 million tonnes in November 2010, an increase of around 5.1 per cent over November 2009.
Saudi Arabia, the world's top oil exporter, ranked second out of total steel production in the Middle East for the first eleven months of 2010, accounting for 27 per cent, following Iran's production of 10.9 million tonnes, NCBNCB said.
It noted that Saudi Arabia's highest steel producing month during 2010 was that of January, the same month the Saudi Government re-imposed the five per cent custom duty to streamline domestic demand.
"In November, the Kingdom's steel production had decreased by around 18 per cent to 388,000 tonnes. However, the year-on-year increase in the Kingdom's production reflects the gradual return of pace to construction activity in the domestic economy," the study said. "The Kingdom's budget released last week, with its emphasis on infrastructure projects will translate into increasing demand for steel in 2011, coupled with the potential demand emanating from the much talked about railway projects. Domestic steel prices are likely to hover around USD3,200 per metric tonne."
Saudi Arabia's production of steel, cement and other construction materials is expected to rise in the next few years as the country is pushing ahead with expansion projects to meet a steady increase in domestic demand and export the surplus as part of an economic diversification programme.
Other Arab countries have launched expansion plans and new projects to increase their steel output and this will push up the overall steel production in the region from around 20 million tonnes in 2009 to 30 million tonnes in 2014.
In recent comments, an Arab industry official said regional nations are considering the creation of a giant steel company that will ensure the growing domestic needs of the metal and face strong foreign competition.
"The Arab iron and steel companies are planning to set up a giant alliance to invest in steel and iron so it will be an influential force in providing the region's needs of these metals and market its products," said Chairman of the Algiers-based Arab Iron and Steel Union (AISU) Hilal Al Tuwariki "Scores of Arab iron and steel firms have agreed on the general principle of this company and its future plans, which include expanding its market share and competing with foreign companies...more Arab firms are expected to join it."
Courtsey news via Emirates 247 2011.
In 2010, Saudi Arabia's crude steel output was estimated at around 4.6 million tonnes, nearly 0.3 per cent of the world's total steel production of around 1,392 million, National commercial bank( NCB) said in a study.
The study, sent to Emirates 24/7, said the kingdom's steel production this year was nearly eight per cent higher than in 2009.
Citing data by the 66-nation World Steel Association, the report showed total global steel output stood at 114 million tonnes in November 2010, an increase of around 5.1 per cent over November 2009.
Saudi Arabia, the world's top oil exporter, ranked second out of total steel production in the Middle East for the first eleven months of 2010, accounting for 27 per cent, following Iran's production of 10.9 million tonnes, NCBNCB said.
It noted that Saudi Arabia's highest steel producing month during 2010 was that of January, the same month the Saudi Government re-imposed the five per cent custom duty to streamline domestic demand.
"In November, the Kingdom's steel production had decreased by around 18 per cent to 388,000 tonnes. However, the year-on-year increase in the Kingdom's production reflects the gradual return of pace to construction activity in the domestic economy," the study said. "The Kingdom's budget released last week, with its emphasis on infrastructure projects will translate into increasing demand for steel in 2011, coupled with the potential demand emanating from the much talked about railway projects. Domestic steel prices are likely to hover around USD3,200 per metric tonne."
Saudi Arabia's production of steel, cement and other construction materials is expected to rise in the next few years as the country is pushing ahead with expansion projects to meet a steady increase in domestic demand and export the surplus as part of an economic diversification programme.
Other Arab countries have launched expansion plans and new projects to increase their steel output and this will push up the overall steel production in the region from around 20 million tonnes in 2009 to 30 million tonnes in 2014.
In recent comments, an Arab industry official said regional nations are considering the creation of a giant steel company that will ensure the growing domestic needs of the metal and face strong foreign competition.
"The Arab iron and steel companies are planning to set up a giant alliance to invest in steel and iron so it will be an influential force in providing the region's needs of these metals and market its products," said Chairman of the Algiers-based Arab Iron and Steel Union (AISU) Hilal Al Tuwariki "Scores of Arab iron and steel firms have agreed on the general principle of this company and its future plans, which include expanding its market share and competing with foreign companies...more Arab firms are expected to join it."
Courtsey news via Emirates 247 2011.
EUROFER, steel companies and national steel federations throughout the European Union (EU)
EUROFER, founded in 1976, and located in Brussels, represents 100% of steel production in the EU.Its members are steel companies and national steel federations throughout the European Union (EU).The major steel companies and national steel federations in Switzerland and Turkey are associate members.
EUROFER is not allowed to provide detailed information concerning the operational or commercial activities of its member companies. This is a direct consequence of its antitrust guidelines and its policy concerning the confidentiality of its member company data.The objectives of EUROFER are the co-operation amongst the national federations and companies in all matters that contribute to the development of the European steel industry, and the representation of the common interests of its members vis-à-vis third parties, notably the European institutions and other international organisations. Within this framework there is no role whatsoever for EUROFER in any commercial transaction.
EUROFER, the European Confederation of Iron and Steel Industries
Steel is one of the most attractive, most robust and most sustainable materials in the world. Thousands of different types of steel facilitate and improve our daily life in innumerable applications. Steel sets trends in lifestyle: it is the material of design and innovation in many aspects of our life, as for example in vehicles, building constructions, medical devices or household equipment. But steel does much more than that. Steel is 100% recyclable and therefore contributes significantly to the long-term conservation of fundamental resources for future generations.
The European steel industry’s annual revenues total about 200 billion Euros, it directly employs 420 thousand people and produces about 200 million tonnes of steel per year. More than 500 steel production sites in 27 EU Member States provide direct and indirect employment and a living for millions of European citizens.
EUROFER, the European Confederation of Iron and Steel Industries
Steel is one of the most attractive, most robust and most sustainable materials in the world. Thousands of different types of steel facilitate and improve our daily life in innumerable applications. Steel sets trends in lifestyle: it is the material of design and innovation in many aspects of our life, as for example in vehicles, building constructions, medical devices or household equipment. But steel does much more than that. Steel is 100% recyclable and therefore contributes significantly to the long-term conservation of fundamental resources for future generations.
For more information : www.eurofer.org
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