Assocham seeks 10% import duty on steel products

Wed, Jan25, 2012

New Delhi: Industry body Assocham has called for raising the import duty on steel products from 5 per cent to a minimum of 10 per cent so that local manufacturers have a level playing field vis-a-vis imports from China and the Commonwealth of Independent States (CIS) countries.

The challenging global environment has resulted in fierce competition and increased pressure on performance and price reduction.

“The oversupply in international markets is forcing China and the Commonwealth of Independent States (CIS) to dump their steel products like hot-rolled coils... and other coated products into growing markets like India,” said the Assocham Secretary General, Mr D.S. Rawat.

As a result, the Indian steel industry has reduced its production and is running at lower capacity utilisation, he said.

China and CIS countries possess huge coking coal and iron ore resources, which give them cost-competitiveness, whereas India depends on imports for its requirement.

In the past one year, coking coal prices have increased by more than 100 per cent, putting an additional burden on steel manufacturers. Nearly 50 per cent of the steel manufacturing cost is on account of coking coal and 20 per cent on account of iron ore.

“Most importing nations protect their domestic producers by imposition of a marginally higher import duty while encouraging exports by offering various incentives,” Mr Rawat said.

Raising import duty to a minimum of 10 per cent will encourage the growth of the domestic steel industry and ensure that the India growth story is kept intact, he said in a pre-Budget memorandum to the ministries of finance and steel.

In the next two years, steel-making capacity is set to expand by 15-20 million tonnes to meet the growing demand for high-end consumer products like cars, fridges and washing machines.

Keywords: Assocham, steel products, import duty, China, CIS countries, imports, exports

(sourced Business Line)

China's Baosteel FY11 net profit slumps 43.4 pct

Sat Jan 14, 2012

SHANGHAI Jan 14 (Reuters) - Baoshan Iron & Steel Co Ltd, China's biggest listed steelmaker, said on Saturday its 2011 net profit fell 43.4 percent to 7.3 billion yuan ($1.2 billion).

The firm said in a filing to the Shanghai stock exchange it achieved total revenue of 223.1 billion yuan, up 10.2 percent from the previous year. Its basic earnings per share for the year was 0.42 yuan.

Baoshan Iron & Steel said earlier in the month it will keep its main steel product prices steady in February from January but was guarded about the market's outlook.

With no signs that steel demand in the world's top steel producer will improve in the near term, the Shanghai-based steel company remained cautious over the market's prospects in early 2012 after raising prices slightly for January. ($1 = 6.3066 Chinese yuan)
(sourced Reuters)

Baosteel raises some main steel product prices for Jan

Mon Dec 12, 2011

SHANGHAI Dec 12 (Reuters) - China's Baoshan Iron & Steel will raise prices for some main steel products for January bookings, the company said on Monday, signalling that steel demand may improve at the beginning of the new year.

The company plans to keep hot-rolled coil prices flat but will raise cold-rolled coil by 100 yuan per tonne ($16) and some electro galvanized steel prices by 100-200 yuan per tonne, after it cut main steel product prices by 200-300 yuan in December from November.

The firm, also known as Baosteel, is the country's biggest listed steelmaker and its pricing is often seen as a barometer of China's steel market. ($1 = 6.3647 Chinese yuan)

(sourced Reuters)

Indian steel majors go for marginal price hike

Wednesday, 09 Mar 2011

BL reported that some of the Indian steel makers have limited the hike in prices to INR 350 to INR 500 a tonne due to uncertainty in demand post budget.

An analyst said that there is uncertainty in the demand from the infrastructure and housing sectors due to rising cost of funds. High inflation and the likelihood of a further rise in key bank rates may force developers to delay projects.

He added that the slowing demand from the automobile and consumer goods sectors appears to have forced them from effecting major price hikes. (sourced from BL)

ArcelorMittal SAfrica to up product prices from April

Fri Mar 4, 2011 2:21pm GMT

JOHANNESBURG, March 4 (Reuters) - ArcelorMittal South Africa (ACLJ.J: Quote), a unit of the world's biggest steel maker (ISPA.AS: Quote), said on Friday it would raise prices for its flat and long steel products by up to 4.9 percent from the start of April.

The unit said in a statement that it would increase prices for hot rolled coil by 3.5 percent, for plate and cold rolled coil by 3.1 percent and galvanised coil by 2.83 percent.

Prices for long steel specialty products would rise by 4.9 percent, it said. (Reporting by Ruona Agbroko; editing by Jason Neely,sourced:Thomson Reuters)

Steel Strips February sales up by 19pct

Friday, 04 Mar 2011

Steel Strips Wheels said that the company has achieved sale of 842,000 Steel Wheel Rims during the month of February 2011 as against 704,000 Steel Wheel Rims during the month of February 2010, recording a growth of 19.70%.

The company has also achieved a production of 851,000 wheel rims during February 2011 as against 702,000 during February 2010 recording a growth of 21.10%.

The company has achieved the export sales of 74,970 wheel rims during the month of February 2011 as against 56,363 wheel rims during the month of February 2010, recording a growth of 33.01%

Nippon says Y20,000 price hike needed after April

(Update1- Nippon Steel sees input costs up by Y15,000/tonne)

* Nippon says Y20,000 price hike needed after April

* Says price increase necessary due to higher input costs

TOKYO Feb 28 (Reuters) - Nippon Steel Corp expects major input costs to rise by more than 15,000 yen ($183.50) per tonne after April, a company official said on Monday.

Due to the rise in input costs, Nippon Steel estimates that a price hike of about 20,000 yen per tonne is necessary for its steel products in general, Kozo Uchida, a senior Nippon Steel executive, told reporters.

That may be equivalent to a nearly 25 percent price hike, given Nippon Steel's average product price of about 82,000 yen planned for the year to March 31.

Its smaller rival JFE Steel last week told primary distributors that it would raise prices steel sheets by 20,000 yen per tonne, signalling to volume contract users such as Toyota Motor Corp the level of price hike it seeks.

Big steelmakers usually push through a price hike among its primary dealers first before starting tough pricing talks with volume users, who buy on contracts, like car and electronics makers and shipbuilders. (Reporting by Yuko Inoue; Editing by Chris Gallagher,sourced:Thomson Reuters)

Iran’s Hormozgan Steel carries out hot test runs at new slab mill

Friday, 25 February 2011

Iranian steelmaker Hormozgan Steel is currently carrying out hot test runs at it new slab-producing plant located close to Bandar Abbas, one of Iran's main ports on the Persian Gulf.

The new slab plant, with a designed annual capacity of 1.5 million mt which may later be expanded to 3 million mt, is expected to commence production operations, using sponge iron as feedstock, in the coming months.

Tags: slab , sponge iron , raw mat , semis , Iran , Middle East , investments , steelmaking

Nippon Steel plans 20 pct price hike - Nikkei

Fri Feb 25, 2011 5:06am GMT

* Will ask customers to accept around $240 hike -Nikkei

* JFE also seen asking for similar rise

Feb 25 (Reuters) - Nippon Steel Corp (5401.T: Quote) will ask auto makers and other major customers to accept a roughly 20,000 yen ($242) a tonne price rise for steel products starting in April, the Nikkei business daily said, as soaring material costs take their toll.

Nippon Steel, the world's No.4 steelmaker, will propose the around 20 percent jump as early as mid-March, the daily said on Friday.

That would be in line with rival JFE Steel Corp's (5411.T: Quote) announcement on Thursday that it would up prices of steel sheet for sale through domestic wholesalers by 20,000 yen per tonne from April, signalling to volume contract users such as Toyota Motor Corp (7203.T: Quote) the level of price hike it seeks. [ID:nTOE71N01S]

Asia's steelmakers aim to pass on climbing costs for iron ore and coking coal, the prices of which are expected to climb sharply after April.

But negotiations with their customers, who buy on contract, are expected to be tough. Nippon Steel and JFE have not yet fully passed on the sharply higher input costs from the second-half of the 2010/11 financial year.

The spot price of hard coking coal in Australia in the December-February period, which will be reflected in the April-June contract price, will likely average $279 per tonne, data service company Argus Media Ltd said.

That could mean an about 27 percent price hike in coal during April-June from the previous quarter. ($1 = 82.755 Japanese yen) (Reporting by Yuko Inoue in Tokyo and NR Sethuraman in Bangalore; Editing by Joseph Radford, sourced:Thomson Reuters)

Magang Group reports strong color coated plate sales to Europe

Friday, 25 Feb 2011

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

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

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

(sourced:steel orbis)

US imports 2,048,000 nt of steel in January

Thursday, 24 February 2011

The American Iron and Steel Institute (AISI) announced Wednesday that based on preliminary US Census Bureau data, the US imported 2,048,000 net tons (nt) of steel in January, including 1,632,000 nt of finished steel, up 10 and 8 percent, respectively, from December data. Import market share for finished steel products was approximately 21 percent last month, up 1 percent from December.

The most significant month-over-month increases of imported finished steel products are reinforcing bar (up 44 percent), wire rod (up 34 percent), as well as standard pipe (up 38 percent), line pipe (up 34 percent), and oil country goods (up 24 percent).

The largest volumes of finished steel imports from offshore were from South Korea (213,000 nt and up 9 percent), Japan (126,000 nt up 23 percent), Germany (78,000 nt and up 20 percent) and Australia (74,000 nt and up78 percent).

Tags: rebar , wire rod , pipe , longs , tubular , USA , Germany , Australia , Japan , Korea S. , Oceania , Europe , Far East , North America , imp/exp statistics , trading , East Asia and Pacific , European Union

Worthington Industries and MISA reach joint venture agreement

Wednesday, 23 February 2011
Columbus, Ohio-based diversified metals manufacturer Worthington Industries, Inc. and metal processor Marubeni-Itochu Steel America Inc. (MISA) have reached a principle agreement to combine light gauge steel framing manufacturer ClarkWestern Building Systems and the US' largest manufacturer of metal framing and finishing products, Dietrich Metal Framing, into a newly-formed joint venture.
In the new venture, MISA will hold a 75 percent interest, while Worthington Industries will acquire a 25 percent interest, however, Worthington will also acquire the assets of the non-automotive service center business of MISA Metals, Inc. (MMI) consisting of three steel processing facilities located in Ohio and Tennessee. The deal is expected to be signed by the end of the month.
"We are making two businesses stronger by combining them in a joint venture," John McConnell, Chairman and CEO of Worthington Industries said. "The economic downturn has been particularly difficult for the construction industry and by creating the joint venture, we best position them to be profitable now, and for success when the market begins to recover."
Under the new joint venture however, seven of Dietrich's 13 facilities will be closed, as well as one ClarkWestern Building Systems facility.

Tags: galvanized , coated , flats , USA , Europe , North America , investments , M&A , manufacturing , European Union , Mediterranean

Ternium’s Q4 net income down $98 million

Wednesday, 23 February 2011

Steelmaker Ternium announced Tuesday net income of $102.8 million in Q4 2010, a decrease of $98 million compared to Q3 2010 mainly due to a $133.9 million decrease in operating income. For the whole of 2010, Ternium's net income was $779.5 million, compared to $767.1 million in 2009.
Sales of both flat-rolled and long steel products soared in Q4 2010, increasing 43 and 56 percent, respectively, compared to Q4 2009.
For 2011, Ternium predicts accelerated growth in the NAFTA regions, with higher industrial activity in Mexico driving local demand for steel products.

(sourced:steelorbis)

Tags: rebar , hrc , crc , galvanized , coated , longs , flats , USA , Mexico , Venezuela , North America , South America , fin. Reports , steelmaking

Severstal announces USD 2 billion investment program for 2011

Tuesday, 22 Feb 2011

OAO Severstal one of the world leading integrated steel and mining companies announces a target USD 2 billion capital investment program for the current financial year. Severstal will continue to improve operating efficiency, modernize its operational facilities and ensure that the Company maintains industry leading standards of health and safety.

In 2011 the total amount of investment at Severstal Russian Steel will be approximately USD 940 million around a 73% increase on 2010 and will include the following key projects: the continued construction of a mini-mill in Balakovo in the Saratov Region, the renovation of the No 7 coke oven battery, the modernization of the No 5 blast furnace and the construction of a second polymer coating line in Cherepovets and the large-scale IT projects.

In 2011 the total amount of investment at Severstal Resources will be approximately USD 650 million around a 53% increase on 2010 and will include a project to modernize production equipment across the division’s iron ore mills and coalmines, the completion of a thermoelectric power station burning coalmine methane in Vorkuta, an exploration of the Putu iron ore deposit in Liberia, the continued development of the division’s gold mining assets and a coalmine at PBS Coals.

In 2011 the total amount of investment at Severstal North America will be approximately USD 465 million around a 69% increase over 2010, and will include the construction and commissioning and start-up of the 2nd Electric Arc Furnace, Continuous Caster, Tunnel Furnace, Pickle line and the 2nd Hot Dip Galvanizing line at Severstal Columbus, new Cold Rolling Complex and Hot Dip Galvanizing line at Severstal Dearborn.

Overall, the level of CAPEX represents an approximately 48% increase over the level for 2010.

Mr Alexei Kulichenko CFO of Severstal commented that “In 2011 Severstal will continue to make investments across its businesses in order to enhance our position as a market leader in the production of high added value products, improve our operational efficiency and reduce costs. In Russia and CIS, steel use is estimated to increase by approximately 8% in 2011.”

HBIS to hike EXW price for Feb by CNY 100 to 150 per tonne

Thursday, 27 Jan 2011
It is reported that Hebei Iron & Steel Group raise its February ex-works prices of most construction steel products and plate products by CNY 100 per tonne to CNY 150 tonne.
All price changes listed below are EXCLUSIVE of 17% VAT except stated otherwise, and will come into force as of the date of issuance.
1. Hard wire rod
Feb prices up CNY 100 per tonne from January level45 to 60#hard wire rod is priced at CNY 4800 per tonne
2. Welded rodFeb prices up CNY 100 per tonne from January levelH08AE welded rod and ER50S-6 welded wire are offered at CNY 4850 per tonne and CNY 5150 per tonne;
3. B-SteelFebruary prices up CNY 100 per tonne from January level77B-steel and 82B-steel are both posted at CNY 4900tonne
4. PC-steelFeb prices up CNY 100 per ton from January level30MnSiPC-steel goes at CNY 4850 per tonne.
5. High speed wire rod
Products made by Tangsteel, Xuangang, ChenggangFebruary prices up CNY 100 per tonne from January levelHPB235 high speed wire rod with diameter 6.5mm was priced at CNY 4,750 per tonneProducts made by HandansteelHPB235 high speed wire rod with diameter 6.5mm was priced at CNY 4800tonne
6. RebarProducts made by Tangsteel, Xuangang, Chenggang,February prices up CNY 150 per tonne from January level;HRB335 high speed wire rod with diameter 18mm to 25mm was offered at CNY 4,770 per tonne;Products made by Handansteel,
HRB335 high speed wire rod with diameter 18mm to 25mm was offered at CNY 4,750tonne;
7. Spiral steelProducts made by Tangsteel, Xuangang, Chenggang;February prices up CNY 100 per ton from January level;HRB400 spiral steel with diameter 8mm to 12mm is posted at CNY 4,900 per tonne;Products made by Handansteel;HRB400 spiral steel with diameter 8mm to 12mm was posted at CNY 5,000 per tonne
8. Medium plateFebruary prices up CNY 100 per tonne from January levelMedium plate Q235 with diameter 14mm to 20mm is offered at CNY 4900 per tonne
9. HRCFebruary prices up CNY 100 per tonne from January level;HRC Q235 with diameter 5.5mm is priced at CNY 4850 per tonne;
10. CRCFeb prices up CNY 100 per tonne from January level;SPCC with diameter 1.0mm is priced at CNY 5600 per tonne
11. Cold hard coilFeb prices up CNY 100 per tonne from January level;SPCC with diameter 1.0mm is offered at CNY 5150 per tonne
12. CR galvanizedFebruary prices up CNY 100 per tonne from January level;SGCC with diameter 1.0mm is priced at CNY 5700 per tonne.
(Sourced from MySteel.net) Visit www.Mysteel.net for real time access to China steel news!