Monday, 16 Jan 2012
ET reported that as many as 105 sponge iron units face a serious threat of being shut down amid deepening raw material crisis in Chhattisgarh.
Mr Anil Nachrani president of Chhattisgarh Sponge Iron Manufactures' Association said “Some 20 sponge iron units have been shut down since October 2011 and others have cut short production up to 60% as sponge units are just getting 4 million tonne iron ore as against the requirement of 12 million tonne per annum.”
He said “The future of sponge iron units in the state looks very bleak all of a sudden. The production has come down to a meager 2.5 million tonne per annum from the earlier figure of around 8 million tonne per annum.”
He said “I don't see any improvement in the sponge iron industry in the near future. If things do not improve fast, then all units will have to be shut down. After all, how long will industrialists run loss-making units?”
According to Mr Nachrani, Chhattisgarh accounts for nearly 30% of India's total sponge iron output.
He said the massive decline in sponge iron production was mainly due to the Odisha government's decision to close down dozens of iron ore mines since July 2009 in a bid to cleanse the state of tax evaders and those mining without licenses.
"Some two years back, the iron ore availability was satisfactory as we were getting 9 MT per annum from Odisha and 3 MT per annum from NMDC (National Mineral Development Corporation) from its mines in Dantewada district.
(Sourced from ET)
Showing posts with label supply shortage. Show all posts
Showing posts with label supply shortage. Show all posts
Monday, January 16, 2012
Friday, November 4, 2011
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)
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)
Tuesday, October 4, 2011
Coal shortage hits power generation at NTPC Ramagundam unit
Tuesday, 04 Oct 2011
power generation at NTPC Ramagundam super thermal power project located in Andhra Pradesh has been adversely impacted due to shortage of coal supply from Singareni Collieries Company Ltd.
SCCL miners are agitating in support for separate statehood of Telangana. Of the 2,600-MW of installed capacity at Ramagundam, NTPC plant is able to generate about 1,520 MW from the six units of 2,100 MW. It has shut down the seventh unit of 500 MW from Saturday due to coal shortage as it does not make sense to generate power with low plant load factor.
A spokesperson of NTPC told Business Line that "In spite of making alterative arrangements from Mahanadi Coalfields, South Eastern Coalfields and from mines in Chhattisgarh and Orissa and making other alternative arrangements from Coal India Ltd, we are able to generate only about 1,520 MW today."
As against average requirement of about 36,000 tonnes per day, NTPC now has supplies for about 18,000 tonnes.
The power generated from NTPC Ramagundam is supplied as per the allocation made to various southern States. Accordingly Andhra Pradesh gets about 31.5%, Tamil Nadu 25%, Karnataka 19%, Kerala 15%, Puducherry and Goa about 5% respectively.
(sourced from thehindubusinessline)
power generation at NTPC Ramagundam super thermal power project located in Andhra Pradesh has been adversely impacted due to shortage of coal supply from Singareni Collieries Company Ltd.
SCCL miners are agitating in support for separate statehood of Telangana. Of the 2,600-MW of installed capacity at Ramagundam, NTPC plant is able to generate about 1,520 MW from the six units of 2,100 MW. It has shut down the seventh unit of 500 MW from Saturday due to coal shortage as it does not make sense to generate power with low plant load factor.
A spokesperson of NTPC told Business Line that "In spite of making alterative arrangements from Mahanadi Coalfields, South Eastern Coalfields and from mines in Chhattisgarh and Orissa and making other alternative arrangements from Coal India Ltd, we are able to generate only about 1,520 MW today."
As against average requirement of about 36,000 tonnes per day, NTPC now has supplies for about 18,000 tonnes.
The power generated from NTPC Ramagundam is supplied as per the allocation made to various southern States. Accordingly Andhra Pradesh gets about 31.5%, Tamil Nadu 25%, Karnataka 19%, Kerala 15%, Puducherry and Goa about 5% respectively.
(sourced from thehindubusinessline)
Friday, February 4, 2011
Chinese steel mills diversifying sources for iron ore supply
Friday, 04 Feb 2011
Indian iron ore spot prices in recent days kept surging due to iron ore supply shortage in the market, triggered by the news about Indian government hiking iron ore exports duty, flooding situation in Australia, Iran also contemplating 50% duty tax on iron ore fines and 35% on pellet exports.
With the expectation of housing project, railway project and underground projects undertaking in 2011 and many experts believe the Chinese steel demand will continue to see rapid growth in the next few years. The supply of the main source for steelmaking, iron ore has long been controlled by the three major supplying countries, Brazil, Australia and India. It has become a serious concern that China needs to diversify the sources of iron ore supply in the future in order to secure the necessary resources for the steel industry.
In fact, the recent data from China Custom have revealed the efforts. China imported 617 million tonnes of iron ore in 2010, down 1.4% than the previous year.
However, imports from smaller miners have showed significant growth in the past year. Between January to November in 2010, China imported 6.68 million tonnes of iron ore from Peru up by 22%, 4.41 million tonnes from Venezuela up by 77%, 12.88 million tonnes from Iran, up by 128%, 6.9 million tonnes from Indonesia up by 19%, 1.84 million tonnes from North Korea up by 167%, 1.72 million tonnes from Vietnam up by 10% and 6.10 million tonnes from Chile up by 17%.
Apparently, the surging iron ore spot prices and profitability of iron ore encourage smaller suppliers to jump into the iron ore market, thus pushing the imports from these countries to go up. Meanwhile, the overall decreasing in total imports and increasing amount from non-traditional iron ore suppliers indicated the Brazil, Australia and India market share have dropped in 2010.
Analysts pointed out that their market shares drops might be result from the economic recovery in Europe market and Vale have distributed quite a great deal of stock to the region. Traders revealed that importing iron ore from the major suppliers meant accepting the high cost at the market, and importing from smaller miners could mean the prices could be more flexible and thus more attractive.
The high iron ore spot prices have been pushing the index base quarterly contract prices to go up in the quarter one of 2011 as well. Sensing the huge demand from Chinese steel industry, major supplier like Rio, BHP and Vale have planned to expand production in 2011 and the onwards years.(sourced:mysteel.net, for real time access to China steel news)
Indian iron ore spot prices in recent days kept surging due to iron ore supply shortage in the market, triggered by the news about Indian government hiking iron ore exports duty, flooding situation in Australia, Iran also contemplating 50% duty tax on iron ore fines and 35% on pellet exports.
With the expectation of housing project, railway project and underground projects undertaking in 2011 and many experts believe the Chinese steel demand will continue to see rapid growth in the next few years. The supply of the main source for steelmaking, iron ore has long been controlled by the three major supplying countries, Brazil, Australia and India. It has become a serious concern that China needs to diversify the sources of iron ore supply in the future in order to secure the necessary resources for the steel industry.
In fact, the recent data from China Custom have revealed the efforts. China imported 617 million tonnes of iron ore in 2010, down 1.4% than the previous year.
However, imports from smaller miners have showed significant growth in the past year. Between January to November in 2010, China imported 6.68 million tonnes of iron ore from Peru up by 22%, 4.41 million tonnes from Venezuela up by 77%, 12.88 million tonnes from Iran, up by 128%, 6.9 million tonnes from Indonesia up by 19%, 1.84 million tonnes from North Korea up by 167%, 1.72 million tonnes from Vietnam up by 10% and 6.10 million tonnes from Chile up by 17%.
Apparently, the surging iron ore spot prices and profitability of iron ore encourage smaller suppliers to jump into the iron ore market, thus pushing the imports from these countries to go up. Meanwhile, the overall decreasing in total imports and increasing amount from non-traditional iron ore suppliers indicated the Brazil, Australia and India market share have dropped in 2010.
Analysts pointed out that their market shares drops might be result from the economic recovery in Europe market and Vale have distributed quite a great deal of stock to the region. Traders revealed that importing iron ore from the major suppliers meant accepting the high cost at the market, and importing from smaller miners could mean the prices could be more flexible and thus more attractive.
The high iron ore spot prices have been pushing the index base quarterly contract prices to go up in the quarter one of 2011 as well. Sensing the huge demand from Chinese steel industry, major supplier like Rio, BHP and Vale have planned to expand production in 2011 and the onwards years.(sourced:mysteel.net, for real time access to China steel news)
Subscribe to:
Posts (Atom)
Posts
