May, 30 2008
Visa Steel plans INR 10,000 crore steel project in Chhattisgarh
BS reported that Visa Steel has lined up an INR 7,500 to INR 10,000 crore integrated steel project in Chhattisgarh.
Mr V Saran chairman of Visa Steel said that the technical feasibility report for the project would be in place by the end of July after which the project details would emerge.
He added that however, in the first phase, Visa Steel would set up a 1 million tonne rolling mill at a cost of INR 500 to INR 600 crore and the entire project would be completed in 5 to 6 years. Mr Saran said that the Chhattisgarh plant would focus on long products and would cater to domestic demand.
Visa Steel has possession of around 150 acres in Chhattisgarh, which would suffice for the rolling mill and the balance would have to be acquired.
Nepal requests India to waive export tax on steel
The Kathmandu Post reported that Nepal has formally requested Indian government to waive the recently imposed export tax on steel, referring to Nepal's development needs and the supports that it needs from its neighbor during the current political juncture.
Mr P Ojha commerce secretary of Nepal said that "A request letter to this effect has been forwarded to the government of India."
India announced the export duty in order to discourage steel exports on the last week of April 2008. The move had followed a ban in exports of cement and clinker and was intended at cooling down the prices of steel there. The decision landed a blow to the Nepal's development budget and the general consumers alike as Nepal relies heavily on Indian supply for manufacturing steel rods and other materials.
According to Nepal Rolling Mills Association, some 75% of the domestic demand is met through billets imported from India. Even though Nepal has been sourcing the raw materials from third countries, manufacturers said that the recent shift had been to acquire them from India as it would not only be more convenient but would also cut costs in transportation by a large margin.
The imposition of the duty had sent the prices of steel rods in Nepal up by around 18% to about NPR 100 per kilogram. While this inflated construction costs, it badly affected individual constructions, apart from raising the per unit development cost of the government. Nepali consumers have witnessed a sharp rise in the prices of construction materials over the past 10 months, the steepest one being in case of steel.
Steel export duty hits seamless tube market in India
It is reported that India’s recently introduced export duty on steel could be a serious obstacle for its seamless tube manufacturing industry.
Being the seamless tube market in India highly competitive as the supply far exceeds demand, the reduction in exports would increase prices for the domestic buyers who would have to pay for the increased apportioned fixed costs.
TATA Motors 2007-08 net profit marginally down by 0.09% YoY
TATA Motors reported net profit of INR 21.67 billion for the year ending March 31st 2008 down by 0.09% YoY as against INR 21.69 billion for year ending March 31st 2007. Total income rose by 10.4% YoY to INR 359.18 billion as it sold 585,649 units for the full year, including exports, from 580,280 units in 2007.
The profit decline was due to higher input costs amid soaring global steel prices.
NCDEX NSE JV gets nod for Power Exchange India Limited
BL reported that National Commodity & Derivatives Exchange and National Stock Exchange combine has received in principle approval from the Central Electricity Regulatory Commission to float a power exchange to be called Power Exchange India Limited.
The application made by Power Exchange India Limited has got the go ahead for setting up and operating the proposed exchange. At present, the power trading market in India is pegged at 20 billion units a year and is seeing a growth rate of over 30%.
Jayaswal Neco stops BF operations
Jayaswal Neco Industries Limited has informed BSE that the operations of blast furnace at its Steel Plant Division at Siltara Growth Centre in Chhattisgarh has been stopped since May 22nd 2008 owing to category 1 capital repairs being undertaken to blast furnace.
IT department to investigate Sesa Goa buyout
It is reported that, after the high profile Hutch Vodafone deal, Vedanta’s USD 981 million buyout of Sesa Goa has now caught the attention of taxmen and has sent a missive to Sesa Goa, seeking details of its acquisition by Vedanta.
The IT department has sent a notice to Sesa Goa under Section 133 (6) of the IT Act. Under this section, the department has the power to call for information.
The provision said that "The assessing officer, the deputy commissioner, the joint commissioner or the commissioner may, for the purposes of this Act, require any person, including a banking company or any officer thereof, to furnish information in relation to such points or matters, or to furnish statements of accounts and affairs verified in the manner specified by the assessing officer, will be useful for, or relevant to, any enquiry proceeding under this Act."
The IT department puts this section to use if it has reasons to believe that certain income has escaped tax. The details are then used to strengthen the case.
It may be noted that in April 2007, Vedanta Resources bought out Mitsui’s 51% stake in Sesa Goa for USD 981 million by offering INR 2,036 per share. The deal was concluded with Vedanta acquiring 100% of UK based Finsider International, a company that controlled Mitsui’s interests in Sesa Goa. The company subsequently made an open offer to acquire 20% from retail shareholders of Sesa Goa.
Adhunik Metaliks to consider merger of Vedvyas Ispat and MP Ispat
With reference to the earlier announcement dated on May 21st 2008 regarding board to consider dividend, Adhunik Metaliks Limited has now informed BSE that its management has decided to include the following items in the agenda of the board meeting in addition to the earlier items.
To consider merger or amalgamation of Vedvyas Ispat Limited and MP Ispat & Power Private Limited with Adhunik Metaliks Limited.
Police arrests villagers agitating against Visa Steel in Kalinga Nagar
Kalinga Times reported that Kalinga Nagar police has arrested 42 residents of Jakhapura village on charges of locking up the entrance and exit gates of Visa Steel and preventing men and materials into its premises, located in the Kalinga Nagar steel hub of the district.
As per report, about 100 villagers, including arrested persons of Jakhapura village, located close vicinity of the Visa Steel plant, were demanding that contract job of loading and unloading of materials at the railway siding of the plant to be awarded to them.
Works inside the plant was paralyzed and production hampered following the agitation. As palpable tension prevailed in the area, two platoon of police force were deployed at the site to avoid any untoward incident.
Mr DS Kutey superintendent of police at Jajpur said that policemen had been deployed to avoid any untoward incident. He added that "We are closely monitoring the situation and senior police officials are camping at the troubled site."
TATA Motors to invest INR 100 billion in 4 years
Mr Ravi Kant MD of TATA Motors said that it plans to spend INR 100 billion over the next 4 years to upgrade existing manufacturing plants across India.
He said that "This would aid the launch of 100 new products and variants in that period. The launch of new products would help us improve market share and tackle tough market conditions, hit by rising input costs and inflation."
It would raise about INR 72 billion through three simultaneous but unlinked rights issues to finance its purchase of Jaguar and Land Rover.
Mr C Ramakrishan CFO of TATA Motors said that "We are also considering a further USD 500 million issue of securities in the overseas market. These funding proposals will be used mainly to finance the Jaguar Land Rover acquisition."
ICRA assigns 'LA' rating to fund based bank facilities of Essar Steel
ICRA has assigned an LA rating to the fund based bank facilities of Essar Steel and also an LA rating to the INR 60 billion long term debt program of Essar Steel, indicating adequate credit quality.
ICRA has also assigned an A1 rating to the non fund based bank facilities of Essar Steel Limited indicating highest credit quality in the short term. ICRA has withdrawn the earlier rating assigned to INR 7 billion non convertible debenture program of Essar Steel as no amount is outstanding against the instrument as on date.
The ratings reflect Essar Steel’s established position in the value added segments in the steel industry, a diversified export base, integrated nature of operations, healthy operating profitability and improving capital structure. The ratings are however constrained by the cyclicality inherent in the steel business, recent increases in its cost of production, vulnerability to likely increase in natural gas prices, and moderate level of coverage indicators, despite the improvements seen in the recent past.
With increasing deregulation of natural gas prices, ICRA expects Essar Steel to remain exposed to the risks of gas availability as well as price volatility. It also believes that the weak linkage between the relative price movements of gas prices and steel prices is a source of additional vulnerability for the company.
ICRA notes that Essar Steel’s future capital expenditure program and investment requirements are likely to be limited. With higher estimated profits of 2007-08 and 2008-09 on the back of strong realizations and scheduled debt repayments, ICRA expects Essar Steel’s gearing to significantly reduce in the short term, thereby improving its financial risk profile.
Ennore Port may opt for IPO route to raise funds for expansion
Exim News Service reported that Ennore Port is considering raising INR 800 crore through an initial public offer to be used for expansion. Ennore Port’s management is also seeking a consultant for valuation of the project.
Ennore Port plans to expand capacity with an investment of INR 6,400 crore to raise its throughput from 12 million tonnes in 2004-05 to 58 million tonnes in 2013-14. It also plans to raise INR 5,750 crore through private investments and award the projects on a build operate transfer basis.
Given the right valuation, the IPO is expected to do well in the market, because ports are working at over 90% capacity utilization. With international trade growing at 20%, port investments could yield good returns.
Ennore Port has put on track efforts to develop a jetty for handling three million tonnes of petroleum products, chemicals and liquids. The phase II of this development plan includes the construction of an 8 million tonne coal terminal for Tamil Nadu Electricity Board. Other projects in the pipeline include a 12 million tonne iron ore terminal, an LNG terminal with 5 million tonne capacity and a port based SEZ.
M&M indicates further hike in tractor price
Leading farm equipment maker Mahindra & Mahindra has indicated that a further hike in tractor prices seems inevitable as material costs show no signs of coming down.
Mr Choudhari president at Farm Equipment Sector of M&M said that "There has been an unprecedented rise in material costs over the last one year. We were forced to pass on that to the customer. We see another 10% to 12% rise in input costs, including steel prices, this year." He added that not only M&M, other players too would have to pass on the rising costs to the customer.
M&M's tractor sales declined by 4.7% YoY to 90,509 units during the year ended March 31st 2008 as against 95,006 units in the year ended March 31st 2007. Exports of tractors, however, have increased by 13.4% YoY to 8,533 units as compared to 7,525 units. In 2007, M&M had acquired 43% stake in Punjab Tractors.
Mr Choudhari said that the INR 70,000 crore farm loan waiver scheme of the government is good for the industry. He added that "This means farmers have not to repay this sum and it will be with them. This is positive for the tractor industry."
M&M is among the top 5 tractor brands in the world. With its state of the art plants in India, US, China and Australia, it has a capacity of producing 150,000 tractors a year.
M&M 2007-08 profit up by 3.2% YoY
Utility vehicle and tractor manufacturer Mahindra and Mahindra has reported a 6.3% YoY drop in profit at INR 221.1 crore in January to March 2008 quarter as against INR 236 crore in January to March 2007 quarter due to high input cost.
Profit for the fiscal ending March 31st 2008 stood at INR 1103.3 crore up by 3.2% YoY as against INR 1068.3 crore in 2006-07. Net income for the year was up by 14.7% YoY at INR 11503.4 crore as against INR 10026.2 crore.
Kalpataru Power 2007-08 net profit dips by 6% YoY
Increase in interest cost and financial commitment for warranties and guarantees for the projects has hit the net profit of Kalpataru Power Transmission Limited for the January to March 2008 quarter as the profit dipped by 21% YoY to INR 50 crore as against INR 64 crore. Net sales rose by 20% YoY to INR 629 crore as against INR 522 crore.
For the fiscal 2007-08, the net profit has dropped by 6% YoY to INR 149 crore as against INR 159 crore. The net sales rose by 13% YoY to INR 1,737 crore as against INR 1,524 crore.
Mr Manish Mohnot executive director of Kalpataru Power said that “Performance has been affected by the increase in the commodity prices, especially for fixed price contracts.”
He added that “The working capital of the company has come under pressure as the INR 1,000 crore contracts with a Maharashtra government utility has back ended. Usually in such contracts 25% of the money is paid upfront. But in this contract it would only be paid after we finish the project."
Indian banks insisting on equipment supplier guarantees
It is reported that, drawing lessons from their western counterparts, Indian domestic banks have now begun insisting on equipment supplier performance guarantees for infrastructure projects. Top bankers said that they have begun including minimum performance guarantee clause in power projects as one of the covenants for financial closure.
The move comes as Chinese suppliers have increased their presence in India by under quoting in international competitive bids floated by Indian companies. Some Indian power project promoters have increasingly taken to rooting for Chinese equipment, in view of the low quotes. The discounts by Chinese equipment suppliers were as high as 50% as compared to bids by global or domestic companies.
However, very few Chinese suppliers offered performance guarantees. Other international suppliers, including public sector majors such as BHEL, offer performance guarantees of up to 85% plant load factor, on power equipment supplied by them. In the event of equipment shortfalls, EPC contractors are bound by tight contractual agreements that entailed high compensation.
The absence of such supplier guarantees was beginning to make bankers nervous, especially in projects that are funded entirely on a non recourse basis. Non recourse funding implied that the credit risk was entirely on the project cash flows. Plant deficiencies therefore put project debt servicing at risk. Consequently, project financiers have become more circumspect in the funding non recourse projects. Besides, bankers said, since plant and equipment was covered under the physical asset cover, financiers were interested in knowing the track record of EPC contractors. Under current regulations, the prescribed physical asset cover is 150%. Funding is available up to 80 per cent of the project cost.
M&M sees tough year ahead
Utility vehicle and tractor manufacturer Mahindra and Mahindra has forecast a difficult outlook for the current financial year due to slowdown in domestic and global economies.
It said that "With domestic economic environment deteriorating significantly in recent months and the US and European economies slowing down, financial year 2008-09 is clearly going to be a challenging one."
Mr Bharat Doshi CFO of M&M said that "We cannot assume that we can hold margins at this level because of the tough market conditions."
Mahindra expects the cost of inputs including steel and aluminum to rise 12% in 2008. Operating profit margin for Mahindra fell to 10.9% in January to March 2008 quarter from 11.5%.
Petron Engg receives LoA for Mundra power project
Petron Engineering Construction Limited recently announced that it has received letter of award from Sichuan Fortune Project Management Company Limited of China for erection work for two 330 MW power plants of Ms Adani Power Project Limited at Mundra for a total estimated contract value of INR 43 crore.
Thermax bags heat recovery steam generator export order
Thermax Limited recently announced that it has signed a protocol of agreement for an export order, for supply of heat recovery steam generator. This order shall be executed for an oil field Company to enhance the oil recovery through steam injection in their existing oil wells.
The order value is about EUR 14.2 million and would be an important milestone in Thermax Limited's export business, in the European market, in terms of territorial reach and future opportunities.
AD duty on Chinese tyre imports not effective – Report
Exim News Service reported that the anti dumping duty on the imports of Chinese trucks and bus tyres imposed in 2007 does not seem to have had much impact due to the price differential of the product in both countries.
Mr Rajeev Buddhiraja director general of Automotive Tyre Manufacturers’ Association said that "The rising imports of commercial vehicle tyres clearly demonstrate that the anti dumping duty has been ineffectual."
He added that though the anti dumping duty was hiked to USD 135 from USD 75, the price difference in the domestic and Chinese replacement market remains in the range of 10% to 30%.
According to the data from the directorate general of commercial intelligence & statistics till September 2007 and the projected data by ATMA till March 2008, imports of commercial vehicles tyres had risen steeply in the last 5 years with the Chinese tyres making up 91% of the total number of tyres imported. ATMA disclosed that the competition in the replacement market was between domestic companies like Apollo, JK, MRF and imported tyres. It revealed that the share of Chinese tyres in the domestic replacement market had risen from 0.3% in 2002-03 to 14% as on March 31st 2008.
ATMA also pointed out that the inverted duty structure under which the imports attracted 10% customs duty as against 20% on natural rubber, had also boosted the number of tyres imported.
CIL MCL to outsource over burden removal works
SNS reported that Coal India Limited’s Mahanadi Coalfield Limited plans to award contract to a private party to remove over burden works in Lingaraj coal mine.
Lingaraj is the first running coal mine in MCL going for over burden privatization while a similar move to hand over the over burden works to a private party at Laxmanpur open cast mine at IB valley last was aborted due to all out protests.
As per report, coal workers spreading across Talcher and IB valley coalfield are deeply worried over the move, as they fear it is a back door step to privatize the profit making coal company, which comprises coal mines located in the state of Orissa. They argue there is no point in privatizing the work when workers excel in works leading the company to achieve its record production each year. They say about 600 employees mostly land oustees engaged in this job would be out of work paving their outside transfer. The over burden work is the only work in coal mines which are done by departmental workers.
MCL official source however maintained that this is for a temporary period keeping in view of growing demand of coal and condition of the mine.
JSW to cut down HRC export to improve domestic availability
FE reported that JSW Steel has decided to reduce export of HR coils in this year.
The report cited Mr Sheshagiri Rao director finance of JSW Steel as saying that "Our major focus this year would be to bridge the current domestic demand supply mismatch. In order to increase domestic availability, we have decided to stop HRC exports. Moreover, since we have not signed any long term contracts with overseas buyers, it is easier for us to call off exports."
JSW Steel’s total HRC production stood at 2.15 million tonnes during 2006-07, of which exports accounted for close to 5%. In 2007, its total HRC production was 2.7 million tonnes, of which 6% was exported.
India must end tax on steel exports – Mr Sajjan Jindal
Bloomberg quoted Mr Sajjan Jindal vice CMD of JSW Steel Limited as saying that "These are difficult and challenging times for governments because of rise in prices of oil, coal and other commodities. The Indian government is trying to do its own bit to see prices are kept artificially low.”
He said that “In that line the government imposed tax on steel to increase availability of steel for mass consumption. But in the bargain they have miscalculated and taxed even those products that are used to make goods like automobiles. This type of steel is used by the rich and not by the poor or the lower middle class families.”
He added that “We are having a dialogue with the government to correct the anomaly. We hope that over the next 2 weeks there will be a correction in the rates.''
Mr Bagrodia inaugurates “Clean Coal for Green Power”
Mr Santosh Bagrodia union minister for coal has inaugurated a conference on 'Clean Coal for Green Power' recently. At the conference he announced that the government has made it mandatory that there should be 100% washing of all Indian coal.
Mr Bagrodia said that “Indian economy is sustained at 8% necessitating energy security as well as more power for sustaining the industrial and economic growth. The energy requirement by the end of 11th Plan is over 200,000 MW an addition of over 78,000 MW a growth of about 40%.”
He added that “Thermal power contributes 79% of power generated in India. By the end of 11th Plan in order to achieve 2 million MW, the demand for coal would be around 732 million tonnes from present level of 466 million tonnes per annum. Presently, the annual incremental growth of production of coal is around 6% to 7% which needs to be increased to 10% to 12% to meet the immediate coal demand.”
Government of India has sanctioned 26 coal blocks for production of coal bed methane. Commercial production has started in the Raniganj Coalfields. Indian coal has more ash content that sometimes goes beyond 40%. Ministry of environment stipulates more than 34% ash content coal for transportation beyond 1000 kilometers.
Simple technology like coal washing reduces ash content by 10% gives the following benefits
1. Increase in boiler efficiency by 1%
2. Saving of auxiliary energy consumption to the extent of 0.5% of the total output
3. Saving in maintenance cost of the coal handling and steam generation system to the extent of 20% annually
4. Reduction in freight charges
5. Reduced consumption of support oil
6. Increased availability of boiler and auxiliaries from anything between 400 hours and 1100 hours in a year
7. In addition to the above, the pressure on the fly ash disposal ponds would be reduced as the material to be disposed off would be considerably less
Government is committed to go for more washeries in India whose capacity as on date is 100 million tonnes per annum and aiming at 250 million tonnes per annum in the next 5 years time.
Indian Railways may deploy aluminum wagons
BL reported that, in order to increase its payload capacity and save fuel, Indian Railways is considering a proposal to procure aluminum wagons by 2012-13, when the dedicated freight corridor is scheduled to become operational. The final decision would be taken after a cost benefit study.
A senior railway ministry official said that "Aluminium wagons, considering their light weight, will help the railways save fuel and generate more revenue due to their higher loading capacity. However, a study will have to be undertaken to find if additional revenue and fuel savings can make up for the additional cost of buying aluminum wagons."
Industry experts said that an aluminum wagon will cost about INR 2.5 million, more than double the price of a steel wagon. A stainless steel wagon costs INR 1.8 to 2 INR million. However, aluminum wagons are expected to carry 8T to 10% more weight and help the railways earn more per wagon and make huge savings on fuel as they have less weight.
However, the railways could use aluminum wagons to carry specific commodities like coal, which accounted for 42.4% of the total freight loading of 794 million tonnes during 2007-08. The railways aim to carry 1,100 million tonnes freight traffic by 2012. It has also decided to add 1 more wagon to every train to meet the demand, which is growing at 10% per annum.
Villagers oppose land acquisition for ArcelorMittal plant in Jharkhand
SNS reported ArcelorMittal has met with resistance from residents at the proposed site of the plant in Jharkhand who fear displacement.
As per report, residents of Rania, Karra, Torpa and Kamdara blocks in Jharkhand's Khunti and Gumla districts have pledged resistance against acquisition of tribal land by ArcelorMittal. Over 1000 people under the banner of Adivasi Moolvasi Rakhya Manch took out a march from Sanik Theatre to Raj Bhavan here demanding protection of tribal land from multi-national companies.
Mr Dayamani Barla convener of Adivasi Moolvasi Rakhya Manch said that ''We will not give an inch of land to ArcelorMittal which is set to acquire our land as it would displace about 100,000 people in the 4 blocks.'' He added that they submitted a memorandum to the staff at the Raj Bhavan gate as Governor Mr Syed Sibtey Razi was out of the state.
Citing the example of displacement of people during the setting up of Heavy Engineering Corporation, Bokaro Steel Plant and other public sectors over 40 years, the memorandum said that they were allegedly still to get the compensation. It also warned against flouting the Chotanagpur Tenancy Act which protects tribal land.
ArcelorMittal is scheduled to complete its detailed project report for its proposed 12 million tonnes steel plant by December 2008 and has already finished its survey at Kamdra and Torpa for its proposed plant.
Linde to invest EUR 1 billion in BOC India
Reuters reported that Germany’s Linde Group is ready to invest around EUR 1 billion in BOC India Limited over a 7 to 10 year period.
Mr Sanjiv Lamba MD of Linde Gas Asia Private Limited South & East Asia region said that "Major part of the investments will go to gas plants in steel units. We feel good growth coming from oil, pharma and renewable energy sectors."
Linde had previously announced in December 2007 that it would infuse INR 598 crore into its subsidiary to meet the bulk of the latter’s fund requirement for ongoing projects by 2008. In the process, it would also consolidate its shareholding in BOC India to about 74% from the present 54.80%.
It may be recalled that BOC India won an order to supply gases to JSW Steel for its expansion program at Bellary and another deal from SAIL amounting to INR 318 crore for the set up of two air separation units at Rourkela Steel Plant and IISCO Steel Plant among others.
Illegally transport iron ore seized in Bellary
BS reported that an attempt to illegally transport seized iron ore in Gadiganur police station limits of Bellary district has come to light. Timely action by officials, including those from the revenue and mines & geology departments prevented the illegal transportation of iron ore.
As per report, around 25,000 tonnes of ore was illegally stocked in a plot and there were attempts to bring down the quantum of seized material to 10,000 tonnes and lift the remaining material.
Based on information, Mr Arvind Srivastav deputy commissioner of Bellary has directed the Hospet Tahsildar, Pragna Ammembal and deputy director of mines & geology to look into the matter. Officials found around 31 Lorries engaged in transportation of the material. A case has been registered.
Jharkhand should give up Chiria dreams
It is reported that Steel Authority of India Limited’s INR 54,000 crore capacity expansion and modernization program is likely to be hit if the Chiria mines’ leases are not renewed immediately. The Jharkhand government is undecided on the issue despite intervention by the centre.
Official source said that "If the leases are not renewed immediately, SAIL will have serious problems in proceeding with modernization and expansion plans which have already commenced in full swing."
It may be noted that SAIL had applied for renewal of the Chiria mining leases from the Jharkhand government. Three of six leases were rejected during 2004-05, resulting in SAIL submitting a revision petition to the Mining Tribunal. The Tribunal quashed the Jharkhand government’s rejection orders and asked it to renew the leases. The state then approached High Court, which reserved judgment after two hearings in August 2007.
Thereafter, SAIL filed an interlocutory application seeking the constitution of a committee to resolve the mining lease dispute but the High Court quashed it. SAIL then filed a special leave petition in the Supreme Court and, following a hearing in January 2008, the apex court granted a stay on proceedings in the High Court and asked the state to reply to the SLP.
The delays in renewing mining leases affected SAIL’s expansion plans. As a result, the development of mines in Chiria, Rowghat, Taldih and Thakurani cannot be effected by 2010-11. Even the Parliamentary Committee on Public Undertakings has endorsed SAIL’s contention that it has a legitimate right on Chiria and asked the government to grant the Chiria iron ore mine lease to SAIL.
SAIL has embarked on an ambitious capacity expansion plan to ramp up production to 26 million tonnes by 2010. It further aims to increase production to 60 million tonnes by 2020.
Secondary rebar prices surge this week
It is reported that India’s secondary rebar market in India has witness a surge this week. As per report, prices have gone up by INR 3000 per tonne to INR 4000 per tonne and are now prevailing in the range of INR 42,000 per tonne to INR 44,000 per tonne.
Mr Ramachandran VP marketing of RKKR Steels said that "We increased it by INR 1,000 a tonne, followed it with another INR 1,000 and another INR 2,000. Today, our price is INR 44,000 a tonne."
He said that the reason for this hike is depreciating US dollar. He added that "The dollar has depreciated from INR 39 to INR 43. Our imports, which are largely steel scrap, are becoming costlier. Also, importing coal is become expensive for the same reason. How can we maintain a price line if input costs are on the rise."
Mr Dinesh Surana MD of Surana Steel said that it has affected a hike in the past few days. He added that "Our price is around INR 42,000 plus tonne plus 4% VAT. We are increasing the prices to bridge the gap between our prices and that of leaders like TATA Steel, SAIL and Jindal."
Indian Railways to focus on steel sector
BL reported that, in an attempt to promote bulk freight movement on its network, Indian Railways is introducing a new freight load preference policy for steel players fighting inflationary pressures due to spurt in iron ore prices.
According to the policy, companies providing round the year business to Indian Railways would be given preference in grant of increased quantity of rakes and offered discounts on freight. Large steel makers such as TATA Steel, Jindal, RINL and SAIL would soon get favored customer treatment from Indian Railways.
The policy is aimed at addressing the issue of shortage of rakes by rationalizing the allocation process. While the move will benefit large steel firms with higher loading requirements, it may face criticism from smaller players having irregular loading needs.
Under the policy, Indian Railways would enter into long term strategic tie ups exclusively for on time movement of iron ore. Failure on the part of Indian Railways to deliver rakes to the companies on time would attract penalties. Failure by the companies in using a specified number of wagons would attract similar penalties that could even result in Indian Railways disregarding their demand for higher rakes in other cargo.
Such agreement would also require companies to provide some business to railways on return journeys on a continuous basis to get preference in rake allotment. Indian Railways would have to compensate customers for a delay in providing freight services while users would have to pay a fine if they are not able to provide the promised load. Companies would be able to save quite a bit through the new policy as they would get discounts irrespective of peak or lean season.
Indian Railways has taken many steps to help steel makers in recent days. It brought down iron ore from class 180 to class 170, thus affecting a freight cut by 5%. It also removed the port congestion surcharge of 30% levied on domestic movement of iron ore.
Sujana Metal acquires Saritha Steels, Glade Steels and Sree Ganga Steel
BS reported that Sujana Metal Products Limited has announced the acquisition of 3 steel units namely Saritha Steels, Glade Steels and Sree Ganga Steels.
Mr YS Chowdary chairman of Sujana Group of companies said that "These acquisitions will enable Sujana Metals to cater the fastest growing realty and infrastructure markets in southern part of India."
The latest acquisitions by Sujana Metals are in line with the company's strategy to enhance the capacity to 1 million tonnes per annum by 2010 through acquisitions and expansion plans. It had earlier acquired Kamini Steels and Handum Industries.
Sujana Metals has targeted to reach a sales level of INR 3100 crore by 2010. In the current financial year, its sales turnover is expected to be in the range of INR 1,400 crore. It also plans to enhance its profit from an estimated INR 50 crore in the current financial year to INR 300 crore by 2010.
Global HRB spot prices eruption slows down
SteelBenchmarker reported that the US hot rolled band spot price for May 26th 2008 surged by 0.3% to USD 1,158 per ton, FOB the mill for the fourteenth consecutive rise totaling USD 581, world export HRB price rise by 2.6% to USD 1,051 per tonne FOB the port of export, for the twelfth consecutive rise totaling USD 470, Chinese HRB ex works price surged by 1.0% to USD 704 per tonne for the fourth consecutive rise and the Western European HRB surged by 2.8% to USD 1,119 per tonne ex works for the eight consecutive time totaling USD 406
USA
USD 1,158 per metric tonne FOB the mill
Up by USD 4 per tonne from USD 1,154 two weeks ago
Up by USD 598 per tonne from the recent low of USD 560 on August 13th 2007
Up by USD 528 per tonne from the recent high of USD 630 on April 9th 2007
China
USD 704 per metric tonne ex works
Up by USD 7 per tonne from USD 697 two weeks ago
Up by USD 234 per tonne from the recent low of USD 470 on October 22nd 2007
Up by USD 217 per tonne from the previous high of USD 487 on September 10th 2007
Western Europe
USD 1,119 per metric tonne ex works
Up by USD 31 per tonne from USD 1,088 two weeks ago
Up by USD 456 per tonne from the recent low of USD 663 on July 23rd 2007
Up by USD 423 per tonne from the recent high of USD 696 on June 11th 2007
World Export Price
USD 1,051 per metric tonne FOB the port of export
Up by USD 27 per tonne versus USD 1,024 two weeks ago
Up by USD 501 per tonne from the recent low of USD 550 on July 23rd 2007
Up by USD 455 per tonne from the recent high of USD 596 on March 26th 2007
SteelBenchmarker publishes steel benchmark prices for HRB, CR coil, rebar and standard plate in the US, Western Europe, mainland China, and the world export market every fortnight.
BlueScope approves AUD 370 million BF No 5 reline
BlueScope steel has been planning to undertake the reline of its No 5 blast furnace at Port Kembla for 3 years and today confirmed that this AUD 370 million project will proceed on schedule.
Mr Noel Cornish CEO of BlueScope steel Australia & New Zealand Steel manufacturing Business said that “Number 5 blast furnace is one of the company’s key assets and has served us well during its current 18 years campaign. The reline project will be a comprehensive overhaul of the facility and will restore the blast furnace to peak operating condition and secure our iron making capacity for many years to come.”
He added that “The reline project is schedule to take 105 days and will take place in the first half of calendar 2009. Domestic external sales are not expected to be materially affected during the project and we have contacted export customers who will be affected and they will make alternative arrangement during the reline period.”
BlueScope has two blast furnaces; No 5 furnace was built in 1972 and currently produces approximately 2.6 million tones of hot metal per year.
CSC to raise prices by 17.8% in Q3
Reuters reported that Taiwan’s China Steel will lift its domestic steel prices by an average of 17.8% in the third quarter from the second quarter to reflect higher raw material prices and stronger demand. The raise, missing the 20% rise expected by investors, comes after some bigger rivals also lifted prices.
China Steel, which has annual capacity of 11 million tonnes will raise its prices, including those of steel plates, by TWD 4,310 per tonne with an average rise of 17.8% across its range of products
Mr LM Chung an executive vice president of CSC said that "The global supply chain has been in serious shortage of raw materials for a long time. It seems that will not alter its course any time soon.”
Mr Kevin Li vice president of Shin Kong Asset Management Co said that "China Steel will be able to pass on higher raw material prices to its downstream clients, as demand remains solid.” He added that Shin Kong's mutual funds have no plans anytime soon to reduce their holdings in China Steel, on expectations that global steel prices will extend their upward trend this year.
Israel cancels 10% tariff on steel import
Mr Ronnie Bar On Israeli minister of finance has announced the cancellation of the 10% tariff on imports of steel from countries such as China, Ukraine and Brazil with which Israel does have an international trading agreement.
Mr Bar On's decision follows a request by the Association of Contractors & Builders in Israel, following an increase of more than 60% in steel prices in recent months. The ACBI asked that the duty be canceled so as to enable steel to be imported from additional countries and improve competition on the market
The increase in steel prices was raised last week at a session of the Knesset Economic Affairs Committee. At the end of the debate, committee chairman Mr Gilad Erdan called on the finance ministry to scrap the duty on steel and look at ways of compensating builders participating in government tenders.
Malaysian builders calls for liberalization of steel products
Bernama reported that the Master Builders Association Malaysia has urged the government to consider liberalizing all seven steel bar products under HS Code 7214 and all four wire rod products under HS Code 7213.
Master Builders Association Malaysia in a statement said that although the removal of ceiling price for steel bar from May 12th 2008 is seen as a milestone for the construction industry, only two types of steel bars classified under the HS Code 7214 were liberalized.
It said that "Master Builders Association Malaysia appealed to Domestic Trade and Consumer Affairs Ministry, Ministry of Finance, International Trade and Industry Ministry and Construction Industry Development Board regarding the above situation.”
Mr Patrick Lim president of Master Builders Association Malaysia said that the liberalization of steel wire rod was also crucial as it was mainly used in the construction of low and medium cost housing and pre fabricated components under the industrialized building system. He added that the government should also consider setting up a national stockpile for steel bar to ensure price stability.
Mr Lim said that "This is because the recent initiative to remove the ceiling price for steel bars has benefited the steel millers instead of the construction industry as steel bars have seen upward price increases and are selling at around MYR 4,000 per tonne.
He added that "The association anticipated that steel millers will have to provide the best price possible to compete, instead of having a monopoly here after the announcement of the liberalization. However, this did not happen.”
Mr Lim urged the government to consider studying the possibility of implementing a complementary policy, like in China and India where they imposed a deterrent export tax for all billets and steel bars which has resulted in immediate lower price and increase in local supply there.
EcoSteel to build a rebar mill in Mississippi
Monroe County Journal reported that a 300,000 tonne per year concrete steel reinforcing bar mill is being planned at Armory in Mississippi by start up company EcoSteel Recycling led by Mr Louis Colatriano former Chaparral Steel executive. Construction on the plant is expected to begin by year’s end and will take about 18 months to complete.
The Journal said that EcoSteel Recycling has applied for environmental permits to construct a USD 150 million rebar mill on an 80 acre parcel in the Amory Waterway Industrial Park. The journal added that the company plans to take advantage of a federal law that mandates use of domestic rebar in federal highways and bridge infrastructure projects.
Mr Colatriano said that local media that it will then take another18 months after that to ramp up the facility to full production and EcoSteel Recycling’s target market will be the Katrina rebuilding effort and other construction projects within a 350 mile radius of Amory.
ArcelorMittal announces help for victims of Myanmar cyclone
ArcelorMittal announced that it is donating EUR 100,000 to the “Save The Children” NGO to help the victims of the Myanmar disaster. The donation to Save the Children is being made by the ArcelorMittal Foundation.
Save The Children has been recognized by the United Nations as the number one responding agency in this emergency. The organization has managed to reach over 160,000 people already.
Mr LN Mittal chairman & CEO of ArcelorMittal said that "On behalf of ArcelorMittal, I would like to express my deepest sympathies to all the people affected by this disaster. As a responsible corporate citizen, ArcelorMittal is committed to contribute to the urgent relief efforts underway in Myanmar."
The UN estimates that only 500,000 of the 2.4 million people in the worst affected areas have received some form of aid. Nearly half of the survivors are children, which leaves 900,000 in desperate need of help.
Aceros Arequipa aims 1 million tonnes by Q1 of 2010
BNamericas reported that Peruvian steelmaker Aceros Arequipa is aiming to complete a USD 280 million expansion to 1 million tonne per year from 540,000 tonne per year in the first quarter of 2010.
Mr Mario Munailla marketing manager of Aceros told BNamericas that “Originally the company had planned to complete the expansion in the final quarter of 2009 but long lead times on goods and services from providers has prompted it to consider the Q1 of 2010 as a realistic completion time.”
He said that following the expansion, Aceros Arequipa will fix its eye on a new project to further increase production and take advantage of strong growth in Peru's housing, infrastructure and other sectors in need of steel.
Mr Munailla said that the company does not yet have a specific outline of how much the expansion would provide in tonnage.
Altri shareholders approve spin off of steel unit F Ramada
Thomson Financial reported that Altri shareholders have approved the spin off of its steel unit F Ramada at a shareholders meeting held Wednesday.
Altri in a statement said that the spin off will allow it to focus on its core pulp and paper business, while the new company F Ramada Investimentos SGPS SA will focus on the steel sector.
The statement added that Altri shareholders will get one F Ramada share for every four Altri shares held.
Previously, Altri said that it expects to release the spin off prospectus in June, with rights seen trading in June/July and Ramada Investimentos shares expected to be admitted to the stock market in July.
Sumitomo receives order for SG tubes from China and USA
Sumitomo Metal Industries Ltd together with Sumitomo Corporation has received an order for steam generator tubes*1 to be used in the AP1000*2 an advanced nuclear reactor developed by Westinghouse Electric Corporation of the USA at Sanmen Unit 1 and Haiyang Unit 1 in China. This is the world's first order for SG tubes to be used in the AP1000.
Sumitomo Metals has also received a preliminary order for SG tubes to be used in the AP 1000 in the USA namely, Vogtle Nuclear Power Plant Units 3 and 4. These SG tubes will be supplied to DOOSAN Heavy Industries & Construction in South Korea for assembly into steam generators.
Order Details (China and the USA.)
(1) Product: SG tubes for AP1000
(2) Quantity: Approximately 750 tons
(3) Amount: Over 10 billion yen
(4) Delivery: Fiscal year 2009 for two AP1000 reactors in China
Sumitomo said that “Triggered by worldwide growth in electricity demand and the need to prevent climate change there has been a surge in the construction of nuclear power plants. In this environment, demand for SG tubes is expected to exceed the production capacity of the only three suppliers in the world, namely, Sumitomo Metals, Sandvik AB and Valinox Nucleaire.”
Bending radians at SG tubes are becoming larger, along with the trend that the advanced nuclear reactors are larger in size, in order to improve economic competitiveness and safety. In response to this situation, Sumitomo Metals decided to invest in the remodeling of production equipment for SG tubes and the expansion of its production capacity at the Pipe & Tube Company's Steel Tube Works in Amagasaki, Hyogo Prefecture. This investment was recently initiated, and Sumitomo Metals' production capacity of SG tubes will be raised by approximately 30%.
AWS appoints Ms Bowling as new director
The American Welding Society, the world’s largest organization dedicated to advancing the science, technology and application of welding announced the appointment of Ms Connie Bowling as director of the AWS Foundation’s Solutions Opportunity Squad Gulf Coast Division within its Welder Workforce Development Program.
Ms Bowling has been working in the welding industry for nearly 10 years in both welding engineering and manufacturing engineering capacities. In this role, Ms Bowling will lead SOS endeavors in the Gulf Coast. The SOS team is made up of new AWS staff individuals who consult with and build strategies for end users and welding educational institutions.
The SOS was created as part of the AWS Foundation’s Welder Workforce Development Program, which was launched in 2006 to contend with the growing shortage of skilled welders in the United States. It is estimated that there will be a shortage of at least 200,000 welders by 2010.
Mr Ray Shook executive director of American Welding Society said that “We are pleased to welcome Ms Bowling to our AWS Foundation and new SOS team. Our Welder Workforce Development Program is one of our most important initiatives, and the SOS team is a critical part of its future success. We are pleased to be able to expand our SOS team and focus on specific regions throughout the U.S. that have a heavy welding industry concentration both in business and education. The strength of this program can mean a brighter future for our industry and thousands of students and other individuals who seek a positive career choice.”
The American Welding Society was founded in 1919 as a multifaceted, nonprofit organization with a mission to advance the science, technology and application of welding and allied joining and cutting processes, including brazing, soldering and thermal spraying.
Recycle South adds 3 new properties in North Carolina
Recycle South LLC announced the acquisition of three North Carolina companies operating under mutual ownership Cohen & Green Salvage Co, Lumberton Recycling Co and Raeford Salvage Co. Recycle South consisting of the assets of Carolinas Recycling Group and Atlantic Scrap & Processing was itself recently acquired by the OmniSource subsidiary of Steel Dynamics Inc.
The release said that “The Cohen & Green operations are based at Fayetteville in North Carolina and are located in proximity to two of Recycle South’s five shredding facilities. All management and existing employees will remain at all three locations.”
Mr Marvin Siegel Recycle South chairman & CEO said that “The Cohen & Green companies have operated successfully with a rich tradition in southeastern North Carolina and we are pleased to have these facilities and their employees as part of the Recycle South family.”
Mr Michael Green CEO of the acquired companies said that “We believe our future with Recycle South will enhance the service we provide to our suppliers and customers and will provide long term opportunities to our employees in an ever changing industry.”
The acquired companies were represented by Dresner Partners a Chicago based investment banking firm in a transaction with undisclosed terms.
Recycle South now operates 22 scrap metal processing facilities in the Carolinas and Georgia with approximately 700 employees. It bills itself as one of the largest metal recycling companies in the Southeast with annual shipments of approximately 1.5 million tons of ferrous scrap and 250 million pounds of nonferrous scrap per year.
Hyundai Steel offers new cutting ferrous scrap at JPY 71,500 per tonne
JMB reported Hyundai Steel of South Korea increased the offer for Japanese ferrous scrap to more than JPY 70,000 per tonne FOB.
According to Japanese trading firm, the offer is JPY 71,500 for new cutting scrap, which is JPY 3,500 higher than a month ago. However, Hyundai Steel could have trouble to secure scrap when Japanese scrap shipping price from Tokyo bay already reaches around JPY 70,000
Ruukki launches solution for single storey construction in Czech Republic
Ruukki introduces in the Czech Republic its new solutions package that simplifies and makes the design and construction of commercial and industrial buildings more efficient. The innovative solution includes fast design, manufacture and installation of foundation, steel frame and envelope structures for premises suitable.
Ruukki’s new solution enables flexible scaling of building dimensions. It also enables flexible choices for cladding material as well as for window, door and gate openings. At best, the foundation, frame, walls and roofing can be completed within a couple of months of the customer’s order.
Mr Daniel Mach senior vice president of Ruukki Construction of said that “We work and further develop innovations that serve the interests of our customers in the construction market. A fast planning and construction process saves our customers and partners’ time and resources. This is especially important for the end-user who can begin using the building much faster. Our solutions also mean less financial and operational risk when the various parts of the building are designed and manufactured to fit each other.”
Mr Ladislav Flórián sales director of Ruukki Construction said that “The biggest time saving is reached by the easy and fast design and offering process. We have created a tool a software application that enables efficient structural planning together with the customer. A detailed offer can be provided at once. Also the erection of industrial halls is easy with our integrated and prefabricated structures.”
Ruukki has a strong presence in the Czech Republic providing solutions for customers in the construction and engineering industries. In Ostrava, Ruukki has production of roofing sheets, low profiles, lightweight purlins and liner trays. Ruukki has customer service points also in Brno and Prague, where main office functions are also located. Ruukki currently employs about 150 people in the Czech Republic.
ASTM confers Award of Merit to Mr Blair
Mr Malcolm Blair VP of technology at the Steel Founders Society of America at Crystal Lake in Illinois has received the Award of Merit from ASTM International Committee A01 on Steel, Stainless Steel and Related Alloys. The ASTM Award of Merit and accompanying title of fellow is the highest organizational honor for individual contributions to standards activities.
The release said that “The committee honored Mr Blair for outstanding leadership in the integration and management of ferroalloy specifications and in past chairmanship of Subcommittee A01.18 on Castings; for exemplary leadership chairing Subcommittee A01.95 on USA Committee for International Standardization of Steel and for leadership on the innovative development of SI standards for methods of testing of steel.”
Mr Blair an ASTM International member since 1989, he works on several A01 subcommittees and is the current chair of A01.95. His work as a subcommittee chair and task group leader has increased participation in Committee A01 and promoted the international acceptance of ASTM steel standards. For his contributions he received the Committee A01 Award of Appreciation in 2001. In addition to A01, he also serves on Committees E07 on Nondestructive Testing and G01 on Corrosion of Metals.
ASTM International Committee A01 on Steel, Stainless Steel and Related Alloys is one of 138 ASTM technical standards writing committees. Established in 1898, ASTM International is one of the largest international standards development and delivery systems in the world. ASTM standards are accepted and used in research and development, product testing, quality systems and commercial transactions around the globe.
Hyundai Mipo wins USD 200 million ship order
Reuters reported that South Korea's Hyundai Mipo Dockyard Co Ltd had won an order worth KRW 205.9 billion (USD 199.9 million) to build two CON RO ships for a European company.
Hyundai Mipo in a filing to the Korea Exchange said that the ships would be delivered by June 30th 2012.
ASX steel index registers 49% annual average growth rate
AHN reported that the American steel industry is sturdy and has recovered in less than 10 years. The rise once again of the iron and steel industry was attributed to lesser manpower cost, high demand for steel products in the international and local markets, consolidation of major players, the weaker US currency and the tripling of steel prices in the past five years. Notwithstanding the economic slump across the nation, the Steel Index of the American Stock Exchange jumped by an annual average growth rate of 49% from 2003 to 2007. For the same period, Standard and Poor's 500 stock index showed an average yearly increase of 13%.
The report said that a proof of the industry's recovery is the rapid expansion of steel plants and high employment rates in the sector. Among the new steel facilities that will soon rise are a USD 4 billion plant in Alabama owned by German steel manufacturer ThyssenKrupp which will open by 2010 and hire 2,700 steel workers, a USD 2 billion plant in Louisiana owned by Nucor and the purchase by Russian firm Severstal of the Sparrows Point Steel plant near Baltimore and its infusion of USD 500 million to modernize the plant.
In 2002 the industry was on the verge of collapse due to bankruptcies and steel imports that flooded the country. Over 400,000 steel workers became jobless since the 1980s until the early part of the new millennium, while 40 steel companies folded up due to financial troubles. Latest statistics from the American Iron and Steel Institute said for March 2008, 9.158 million net tons of steel products were exported to other nations. It was a slight decline, though, by 1.9% when compared to March 2007 data and by 0.2% set beside February 2008 data.
Mr Michael Locker president of Locker Associates a steel consulting firm told the Washington Post that "There hasn't been this much building in 25 to 35 years. We are in a new period here. I don't see us going back to the old period of high imports and low prices."
Ms Nancy Gravatt vice president of AISI told the Washington Post that "Today you have fewer but more stronger companies that are able to manage across more volatile conditions more effectively.”
Aker Philadelphia starts construction of 8 tankers
Aker Philadelphia Shipyard announced that it has officially begun production on the eighth tanker in a series of twelve. In the series, four have been delivered and three are currently under construction at the yard. The twelfth vessel is scheduled for completion by early 2011.
As part of the building methodology utilized for this series, the first plates cut on the yard’s state of the art plasma cutter will be assembled into the engine room of the 600 foot long vessel. All together, 45 sections, weighing up to 650 tonnes are fabricated and assembled in Philadelphia to complete the 46,000 DWT tanker.
The release said that “After delivery from Aker Philadelphia Shipyard, the tanker will be converted to a shuttle tanker for use in the deepwater US Gulf of Mexico and will be the first Jones Act vessel to serve this new market with strong growth potential. Shuttle tankers transport crude oil from deepwater areas where there are no available pipelines. When completed, the vessel will be sold to the yard’s sister ship owning company, Aker American Shipping and in turn leased to OSG America.”
Tube City opens trading offices in Singapore and Belgium
Tube City IMS announced that its Tube City Division has opened its first trading offices in Singapore and Gent in Belgium and has expanded its representative trading offices at Jakarta in Indonesia and Beijing in China.
Mr J David Aronson executive vice president Outsource Purchasing of Tube City Division said that all four offices are in prime locations from which the company can grow its markets in the Asia Pacific region and Europe. He said that “We are excited to be able to serve our customers in these important markets. All four regions’ economies are growing, and each location offers opportunities to expand our outsource purchasing and business initiatives.”
The release added that “Mr Hideyuki Nishi Nishizawa who has been instrumental in orchestrating the company's international trading growth in the Asia Pacific region, has been promoted to Managing Director of Asia, according to the press release. He will be relocating from the United States and will be responsible for developing, managing and expanding the company’s Asian trading operations from the newly opened Singapore trading office. Mr Luke Fang and Mr Abby Yao have joined the company’s Beijing representative office as traders under the leadership of Mr Steven Liu chief representative. Mr Fajar Nafies has joined the expanding Jakarta representative office as a trader under the leadership of Iman Surachman chief representative.”
Mr Alain Eeckman has joined the company as managing director of Europe and will be responsible for developing, managing and expanding the company’s European trading operations from the newly-opened Belgium trading office. Eeckman has more than 15 years of experience in logistics and steel trading. Prior to joining the Tube City IMS, he worked at Trade Arbed/Considar and ArcelorMittal.
Mr Aronson said that “We are delighted to welcome our new traders to the team Hideyuki, Alain, Iman, Steven, Fajar, Luke and Abby collectively provide a wealth of experience and knowledge in the international marketplace. Their leadership and existing relationships with leading worldwide steel producers will help facilitate the Company's expansion into these important regions.”
Nucor closes common stock offering
Nucor Corporation announced the closing of its public offering of 27,667,580 shares of its common stock, including 2,667,580 shares issued after the underwriters exercised their over allotment option. The offering was priced at USD 74.00 per share.
Nucor’s gross proceeds of the offering were approximately USD 2.047 billion. Its intends to use the net proceeds from the offering for general corporate purposes including acquisitions, capital expenditures, working capital needs and repayment of debt.
Banc of America Securities LLC, Citigroup Global Markets Inc and JP Morgan Securities Inc acted as Joint Book Running Managers for the offering.
Vam USA to build new pipe threading unit in Houston
Houston Business Journal reported that Vam USA is building a new pipe threading facility in order to expand operations in the Houston area.
As per report Vam which provides services for the oil and gas industry is building an 84,000 square foot facility at 16031 Miller Road No 1. The site is on the east side of Houston along US 90. The building will be next to a pipe yard belonging to V&M Star, which is affiliated with Vam.
Kingham Dalton Wilson Ltd is building the USD 6.6 million facility, which will be complete in less than two months.
UK scrap export down in 2007
UK scrap export totaled 6.012 million tonnes in 2007 down by 18.9% YoY than 7.416 million tonnes in 2006.
Spain the leading offshore destination for UK scrap decreased its purchases by 3% YoY to 1.589 million tonnes from the tonnage acquired the same month of last year. Turkey took 1.54 million tonnes down by 37.5% YoY from a year earlier.
Shipments to France totaled 492,000 tonnes up by 32.2% YoY as against the same time of last year. Moreover, Portugal took 485,000 tonnes, Pakistan took 331,000 tonnes and Egypt took 308,000 tonnes.
(Sourced from YIEH.com)
Nippon Steel HRC to South Korea reaches USD 1000 FOB
Nippon Steel concluded the hot rolled coil price negotiation with South Korean rerollers including Hyundai Hysco by to increase the price to FOB USD 1,000 per tonne for July to September shipment.
The price increased by more than USD 250 from April to June 2008 under higher cost for iron ore, coking coal and energy and higher worldwide steel market.
Technip wins Norwegian wind turbine work
Technip has been awarded an engineering, procurement, construction and installation contract by StatoilHydro for the Hywind project substructure, which will be located offshore at Karmøy in Norway at a water depth of 200meter to 220 meter.
The Hywind project will be the world's first full scale offshore floating wind turbine.
The wind turbine demonstrator will have a tower height of around 65 meter and a blade diameter of around 82 meter that is a total unit height of around 106 meter above sea level. The substructure will be shaped like a vertical floating cylinder, with a draft of around 100 meter below sea level. The unit will have a peak production capacity of 2.3MW.
Technip's operating centre at Oslo in Norway will be responsible for project management and installation engineering. Detailed design and fabrication of the steel substructure will be carried out at Technip's yard at Pori in Finland one of the group's construction sites. The substructure will then be towed to the west coast of Norway, where it will be assembled with the topside. Installation of the wind turbine is scheduled for mid 2009.
Sidenal to double capacity by 2010
BNamericas reported that Colombian steel producer Sidenal plans to increase its capacity to 500,000 tonne per year from the current 190,000 tonne per year by 2010.
An industry executive without providing investment figures told BNamericas that "To do this, the company has acquired a new electric arc furnace, which together with the present one will produce close to 350,000 tonne in 2008.”
The executive added that the company will look at buying a third furnace to achieve the 500,000 tonne per year adding that the aim is to supply the local market.
The plant is in Sogamoso city in Boyacá department, where steelmakers Hornasa, Acerías Paz del Río and Aceros Boyacá are also located, which between them produce more than 750,000 tonnes per year steel or over 50% of Colombia's production.
Sidenal makes earthquake resistant steel products for construction and the metal mechanic industry and has a steel services plant with capacity of 50,000 tonne per year.
STX wins USD 247 million ship order from Europe
South Korea's STX Shipbuilding Co said that it had secured a KRW 258.6 billion (USD 247.3 million) order from Europe to build two very large ore carriers.
STX in a filing to the Korea Exchange said that the ships would be delivered by May 31st 2012
Nippon Steel Nittai Corp ships 120,000 pipes without tests
Jiji Press reported that Nippon Steel Corp consolidated subsidiary Nittai Corp shipped over 120,000 steel pipes without conducting required hydraulic pressure tests.
Nippon Steel said that a Nittai plant at Noda in Chiba Prefecture near Tokyo failed to carry out the mandatory test for the welded stainless steel pipes under the Japanese Industrial Standards and fabricated their test data. The pipes are mainly used at chemical plants.
Nittai Corp said it has confirmed the completion of the test for less than 500 of 126,000 steel pipes that were manufactured at the plant in the past five years and subject to the test.
The data fabrication was found by in house investigations Nippon Steel carried out after the revelation earlier this month of steel pipe testing data fabrication by JFE Steel Corp a JFE Holdings Inc.
Nippon Steel reported the findings to the Ministry of Economy, Trade and Industry on Monday. Reprimanded by the ministry, Nittai suspended shipments Tuesday.
Salzgitter Flachstahl orders fourth continuous caster
Germany Salzgitter Flachstahl GmbH has placed an order with SMS Demag for the supply of an slab caster X Cast in Salzgitter. Commissioning of the plant is scheduled for the beginning of 2010.
The single strand caster designed as a bow type caster will produce slabs of widths ranging from 1,100 to 2,600 mm in thicknesses of 250 and 350 mm. The new continuous caster with slab thicknesses of 250 and 350 mm, SZFG will be enhancing its steelworks capacity. The thickness option of 350 in particular makes it possible to provide slabs for heavy plate production in promising, completely new dimensional ranges. Salzgitter Flachstahl will be using the machine to cast highly demanding micro alloyed steels, heavy plate grades and sour gas resistant tube and pipe grades according to the API 5L and HIC standards.
SMS Demag's order scope comprises the basic and detail engineering, the supply of all mechanical components and the complete X Pact® electrical and automation systems, including control systems and process models. In addition, the supply spectrum includes solid structures and structural steelwork, a new water supply and treatment system as well as the erection, commissioning and supervision. The order will be handled on a turnkey basis.
The equipment of the caster includes several Intelligent Slab Casting modules which determine quality and production. Among these are the hydraulically driven resonance oscillation system, remote controlled mold narrow faces for width change during casting and the position-controlled CYBERLINK segments for performing Dynamic Soft Reduction.
The production of slabs of a high internal quality is thus guaranteed through the above in combination with the width-dependent air mist secondary cooling and the Dynamic Solidification Calculation process model. Also, in order to cast steel grades with critical crack susceptibility on the continuous caster in a reliable and productive manner, the machine has been designed as a bow-type caster with a constant radius of 11.5 meters. This design minimizes the stresses in the strand shell and enables excellent surface quality.
Peiner Träger orders meltshop and slab blank caster
Germany Peiner Träger GmbH a company of the Salzgitter Group has awarded SMS Demag a contract for the supply of an X Melt electric arc furnace meltshop and for the revamp of a continuous beam blank caster to an X Cast combined slab and beam blank caster. Facing the job of meeting stricter steel quality requirements, the new facilities will almost double the current annual production of around 1 million tonnes of steel.
SMS Demag's supply includes a 125 tonne ARCCESS® electric arc furnace with additives supply system plus two 125 tonne ladle furnaces. Concast AG, Switzerland another company of the SMS group, has won the contract for the supply of a 125 tonne twin tank vacuum degassing station.
The use of the secondary metallurgy facilities makes it possible to produce advanced steel grades. The electric arc furnace therefore covers a wide range of products from high-quality steels to structural steels.
Electric arc furnaces of the ARCCESS® series are optimized for the highly efficient use of electric power and include future-oriented burner and oxygen injector technique. The metallurgical process model FEOS® (Furnace Energy Optimization System) controls the furnace process to ensure high productivity at low production cost. Also included in the supply is the revamp of the two strand beamblank caster to form a combined unit for casting steel slabs and alternately beam blanks. To this end, a revamping concept featuring short change times and high production speeds was developed.
The two strand combined continuous caster X Cast is rated for producing 250 mm thick slabs ranging in width between 800 and 1,100 mm as well as for beam blanks with dimensions of 1,150 x 490 x 130 mm.
Continuous caster no. 2 of Peiner Träger GmbH will thus become Germany's first combined caster for the production of beam blanks and slabs. SMS Demag will supply the complete X-Pact® electrical equipment and automation system including process models (level 2). Commissioning of the new equipment is scheduled for early 2010.
Peine is the home of the world-famous Peine beams and produces a variety of other sectional steel types such as the European beam, piling sections and special sections. As part of its ambitious investment program, Peiner Träger GmbH had already in November 2007 ordered a new reversing tandem mill from SMS Meer, which will start operating in the summer of 2009.
Drake & Scull International wins Zamil Industrial contract
Drake & Scull International has announced that Zamil Industrial has awarded it the engineering, procurement and construction contract for the district cooling system within Saudi Iron & Steel Company, a wholly owned subsidiary of Saudi Basic Industries Corporation.
It may be recalled that in November 2007, Zamil Industrial had signed a 22 year energy performance contract with SABIC for the complete outsourcing of process and comfort cooling and building plant to supply up to 20,000 tonnes of refrigeration at Hadeed.
Four killed in blast from old bomb in scrap yard in Egypt
Officials of Egyptian News Service said that at least 4 Egyptians were killed and 9 others seriously wounded in an explosion from an old bomb in the Mediterranean city of Alexandria.
The news agency said that out of the 4 killed, 3 workers at a scrap yard and a bystander were trying to dismantle the steel object when it exploded. They did not know it was a bomb.
It added that those injured in the blast were taken to a hospital in Alexandria for treatment.
Many shells and land mines still lie unexploded near Alexandria, remnants from World War II battlefields.
New bus assembly plant inaugurated for Hafilat Industries
Gulf News reported that UAE has started assembling buses which will not only meet the growing local needs but will be exported also.
Hafilat Industries, the manufacturer of quality aluminum buses licensed by Australia's Volgren, has won an export order worth AED 30 million from Australia. Production will commence this month and it will take 4 months to complete the export shipments. It will build Volgren's New Generation City Bus on a Euro IV Mercedes Benz chasis originating from Spain, all of which will feature multiplexed electrics, sophisticated video surveillance, electronic signage and a full aluminum body.
Mr Shaikh Hamed bin Zayed Al Nahyan chief of the Abu Dhabi Crown Prince's Court and chairman of the Higher Corporation of Specialized Economic Zones has inaugurated Hafilat Industries' new factory located in Industrial City of Abu Dhabi.
UAE is the first country in the GCC to be building European quality buses. Hafilat uses Swiss technology which is further enhanced by its Australian partner Volgren. The buses are not only lighter but are stronger and safer for the passengers and the driver. Additionally, they do not rust, which makes them cheaper to operate and maintain.
Apart from city buses, Hafilat has a full range of public transport buses, including articulated city, double deck, compressed natural gas, hybrid electric and trolley buses.
UAE may introduce VAT in first quarter of 2009
Reuters reported that UAE is planning to introduce a value added tax in the first quarter of 2009 but a final decision on the timing has yet to be made.
Mr Abdul Rahman Al Saleh executive director at Dubai Customs said that "We will be the one to launch it first. We were planning for the last quarter of 2008 but we have put it back to the first quarter of 2009." He added that the tax would be between 2%and 5% though below 5% and would help compensate for revenue lost when the customs duty is scrapped, upon introduction of the VAT.
Mr Saleh said that "VAT is the best tax system for strengthening the economy of the UAE. The tax will be imposed on consumer goods and services. Any inflation caused by the VAT should be less than a "diminishable half a percent."
According to a National Bank of Abu Dhabi estimate, inflation in UAE hit a 19 year peak of 9.3% in 2006 and probably accelerated to 10.9% in 2007. In April 2008, the UAE's economy minister said the dollar pegged oil producer's inflation target of 5% this year would be a miracle.
Mr Al Saleh said that VAT could be introduced across the Gulf Arab region by 2012, but that such a move depends on the situation and the economy and the way they do things.
Qatargas gets Safety Award from British Safety Council
Khaleej Times reported that Qatargas has won the prestigious International Safety Award from the British Safety Council, following grueling tests by an independent adjudicating panel. Mr Aniruddha Ghaisas plant safety officer at Qatargas’ safety, environment & quality department received the award at the International Safety Award Winners’ Banquet in London.
Qatargas recently completed 6 years without lost time incident offshore and 5 years onshore on its operating facilities. Upon completion of the ongoing expansion projects, Qatargas will raise its annual LNG production to nearly 42 million tonnes.
Mr Faisal al Suwaidi CEO of Qatargas said that "This award is testimony to Qatargas’ relentless pursuit of safety excellence. Safety is a core value in Qatargas and takes priority over everything else. We want all our people to go home safely at end of the day, this is what forms the basis of our safety philosophy. I would like to congratulate all those involved for winning this award and at the same time remind everyone that safety is the personal responsibility of each and every individual."
Qatargas officials said that "Winners must have good safety policies, plans and commitment to health and safety at the highest level and also be endeavoring to improve the safety culture within their organization. They must detail their health and safety officers’ qualifications and provide information about significant advances they have made in health and safety for the year."
Mr Brian Nimick CEO of British Safety Council said that "For more than 50 years, we have led the way in promoting health, safety and environmental best practice in society. In the 21st century, many organizations worldwide are now making health and safety a top priority. Through achieving an International Safety Award, Qatargas is helping to make our vision of a safe working environment a reality."
Established in London in 1957, the British Safety Council is one of the world’s leading occupational health, safety and environmental organizations.
India is 2nd largest supplier of goods to UAE
It is reported that India is now the UAE’s second largest exporter of goods. China bagged the top slot in 2007, while India became the second largest supplier.
A report from Emirates Industrial Bank of UAE shows that from AED 9.2 billion in 2002, UAE’s imports from India spurted sevenfold to around AED 67 billion in 2007.
Ground breaks for German Business Park in Dubai
Khaleej Times reported that Mr Shaikha Lubna Al Qasimi foreign trade minister of UAE and Mr Johann Adolf Cohausz German consul general to Dubai have broke ground of German Business Park, a large mixed use development in Dubai Silicon Oasis that will serve as a hub for German business in the UAE and wider GCC region.
Mr Shaikha Lubna said that "Our economic ties with Germany have never been stronger than today. I believe that the ground breaking of the German Business Park represents another important milestone in our ever evolving partnership. As the UAE minister of foreign trade, I am particularly pleased that the initiators have chosen Dubai as the location of German Business Park. The decision reflects the great amount of trust the UAE enjoys among its key international business partners."
German Business Park, a JV between Dubai Silicon Oasis Authority and the Bin Jabr Group of Abu Dhabi, is slated to become one of the world's largest German themed business clusters.
Mr Cohausz stressed the significance of the project for German trade with the region by noting that "Ever since Germany engaged in a strategic partnership with the UAE in 2004, business relations between our two countries have been thriving. The UAE is our most important trading partner in the entire Arab world, and the number of German companies operating here has risen to more than 600. I am confident that the German Business Park will constitute a further stimulus for German business activity in the region."
According to recent statistics, German bilateral trade with the UAE has reached the equivalent of more than USD 9.8 billion in 2007. The EUR 200 million German Business Park is located within the central district of Dubai Silicon Oasis, the region's premier integrated innovations hub for high tech industries.
The 880,000 square foot development will offer office space for sale and lease, a state-of-the-art business hotel operated by a major German hotel operator, adjunct studios and apartments for sale, a luxury European shopping complex with world-class shops and restaurants, an enclosed garden plaza, roof terraces and an atrium.
Turkish scrap market reported to be quite
It is reported that Turkish steel mills have bought a lot scrap earlier and therefore the scrap market is very quiet now.
According to the latest two deals of deep sea scrap, the price of HMS1&2 80:20 scrap was at CIF USD 728 per tonne and P&S scrap was at CIR USD 738 per tonne.
One of Egypt’s mills has purchased shredded scrap at CIR USD 750 per tonne. The price for A3 scrap of black sea to Turkey is between CIR USD 710 to USD 715 per tonne.
The scrap price in Turkey remains steady due to weak demand. The freight for USA eastern to Turkey has risen by USD 100 per tonne. But with shipment and iron ore prices skyrocketing, scrap price in the future will be decided by supply and demand.
Turkish export offers of rebar crosses USD 1300 mark
Due to rising global oil price and strong demand, the Turkish export price of rebar has continued to rise.
Current rebar export to Dubai has risen to USD 1,330 to USD 1,350 per tonne CFR. But, some Middle East buyers said that they are not a hurry to purchase at this moment because they still have stock and the rebar price is really too high.
At the same time, regarding the soaring billet price, some of Turkey’s rebar rolling mills are not able to pay such high prices in buying billet; therefore, some mills have reduced or halted their output.
Oman Holding to sell Oman Steel shares to UAE buyer
Bloomberg reported that Oman Holding International Company has agreed to sell its shares in Oman Steel Company to a United Arab Emirates investor.
As per report, Oman Holding will sell the shares for OMR 1.65 million.
Ezz Dekheila reiterated steel price this week
Daily Star Egypt reported that Al Ezz Dekheila Steel has reiterated its ex factory price for a tonne of steel this week and set formal limits for the prices dealers and retailers can charge, in keeping with a new set of rules advanced by the ministry of trade & industry this week.
Al Ezz reported its ex factory price at EGP 5,700 per tonne, in keeping with figures released earlier this month, and set price caps at EGP 5,890 for distributors and EGP 5,990 per tonne for retailers.
While Al Ezz’s move was largely a formality, it will be a first trial as to whether the trade ministry’s new rules will substantially dampen steel speculation and lower the towering prices faced by end consumers here.
Mr George Matta marketing director at Al Ezz Steel said that "The regulations are very clear. Those who do not comply will be reported to the ministry."
Al Ezz deals with about 90 wholesalers who in turn sell to between 1,000 and 1,100 retailers. It recently set up a hotline for consumers to report disobedient re sellers and will launch an advertising campaign to keep people aware of new price limits in June 2008.
Interpipe secures major loan for funding steel expansion
Ukrainian Journal reported that steel pipe and railway wheel producer Interpipe has closed a USD 531 million ECA supported debt financing package to develop and construct a 1.32 million tonne steel electric arc furnace.
The new steel mill will be built in Dnepropetrovsk in Eastern Ukraine. The debt package comprises a USD 344 million Sace backed export credit facility and a USD 187 million pre export financing arranged by Barclays and Citi.
Nabucco pipeline construction to cost more
Nabucco Gas Pipeline International stated some 1.5 fold increase in the cost of the Nabucco gas pipeline to EUR 7.9 billion due to hike in oil prices and rising steel demand.
Consortium of the project reviewed capital expenditures on the basis of assessment of material procurement and supplies for implementation of the gas pipeline construction project.
According to new assessment, the project will require 2 million tonnes of steel, 200,000 pipes and over 30 compressor aggregates.
Nabucco gas pipeline will pump gas from Azerbaijan and Central Asia to EU countries. From Central Asia gas may be delivered to Nabucco via planned Trans Caspian gas pipeline to be constructed along the bed of the Caspian Sea. The pipeline with initial carrying capacity of 8 billion cubic meters per year will be constructed by 2012.
First supplies will be pumped in 2013.
Ann Joo Plans to boost steel exports to Middle East
Bloomberg reported that Malaysia’s Ann Joo Resources Bhd plans to increase exports to the Middle East due to prevailing high prices.
Mr Lim Hong ED of Ann Joo Resources in an interview said that Ann Joo's MYR 600 million blast furnace and a slab caster will increase the proportion of the metal going to Abu Dhabi and Dubai to about 80% of total exports.
Mr Lim said that “The Middle East should be the hottest market. They are a big net importer of steel because there's acute shortage. Their order is huge and they pay a higher price than our local contractors.''
He added that steel prices in the Middle East, which is spending USD 700 billion in the next five years on infrastructure developments, are about 5 percent higher than Asian prices, Lim said. Malaysia scrapped export curbs on steel bars and billets and allowed local manufacturers to set their own prices on May 12.
Mr Ng Sem Guan an analyst at OSK Research Sdn said that “Malaysia's recent liberalization move is very positive for local steel manufacturers as there is no curb on exports and they should be able to capitalize on the current regional shortage.”
BaoSteel hikes Q3 prices--Industry source
According to a reliable industry source who asked for anonymity, China's top steelmaker Baosteel has announced its price change details for Q3 productions with prices raised by CNY 300 per tonne for common carbon HRC and CRC. 1.0mm SPCC CRC is offered at CNY 6296 per tonne, 5.5mm HRC is offered at CNY 4992 per tonne.
Baosteel Q3 price details are listed below:
1. HRC in SPHC grade - Up by CNY 200 per tonne
2. HRC in other grade s - Up by CNY 300 per tonne
3. HRC in special grades - Up by CNY 400 per tonne
4. HRPO common grades - Up by CNY 200 per tonne
5. HRPO in special grades - Up by CNY 600 per tonne
6. CR in common grades - Up by CNY 300 per tonne
7. CR in deep drawing grades - Up by CNY 600 per tonne
8. CRFH - Up by CNY 300 per tonne
9. ETP - Up by CNY 1000 per tonne
10. HDG and EG - Up by CNY 200 per tonne for HDG
The Q3 prices have yet to be officially confirmed by Baosteel.
(Sourced from MySteel.net)
BHPB bid for Rio – Baosteel terms BHP stake interest as rumor
It is reported that the Mr Xu Lejiang chairman of Baosteel Group said that the news that his company wants to buy a stake in BHP Billiton Ltd is a market rumor.
Mr Xu Lejiang when asked about media reports that Baosteel is seeking to buy into BHP told reporters "That is a market rumor."
The Australian media had reported that Chinese investors had asked a big Australian pension and investment fund to be a partner in a deal for 9% of BHP's shares amid speculation that a Chinese firm is building a stake in the world's biggest mining company.
CISA denies media reports on steel export duty hike
XFN-ASIA reported that the China Iron and Steel Industry Association denied media reports that export duty on steel products will be increased effective on June 1st 2008.
The association in a statement said the rumor had disrupted normal production and would hinder earthquake reconstruction efforts. It said that stable steel product exports make for a stable steel market.
According to customs figures China exported 16.17 million tonnes of steel products during the January to April period down by 23.9% YoY.
Industry watchers said that if the date of an export duty hike is known in advance, producers tend to increase their output of products for export, putting the squeeze on supplies for the domestic market.
WISCO to produce 20,000 tonnes of PPGI for earthquake relief
It is reported that WISCO plan to produce 20,000 tonnes of color coated plate in order to 60,000 sets of light and simple houses for the earthquake disaster areas.
Recently, the national housing and the Ministry of urban and rural construction issued an announcement which requested to build 1 million sets of light and simple houses in Sichuan earthquake disaster areas in next three months. WISCO initiatively undertook the material supply task for the 60,000 sets of light and simple houses.
1. The first batch of 10,000 sets simple houses will be completed before June 25th 2008
2. The second batch of 10,000 set simple houses will be completed before July 20th 2008.
3. Third batch of 40,000 sets of simple houses will be completed before August 10th 2008.
Bagang produces API X52 steel
It is reported that up to now, Bagang Company’s steel making plant has produced 922 tonnes of X52 pipeline steel.
Bagang Company began to smelt X52 pipeline steel at the end of last year. At present, all the performances of the products smelt by Bagang’s second steel making plant can meet the standard requirements
X52 pipeline steel is one of the special high quality steel products with high value added, mainly be used in the manufacture of oil and natural gas pipelines. At present, this product is supply falls short of demand in China especially in Northwest.
Jinxi Steel to construct Daqin Railway Special Line
It is reported that recently, the development of Daqin Railway Special Line in Jinxi Steel is in order, and Hebei provincial development & reform commission has already approved the construction of the project.
As per reports, the total investment in the project is CNY 400 million and the design length of the rail is 19.353 kilometer accounting for 657 acres.
After the commission, the special line would be able to accept 6 million tonnes of coke from Taiyuan every year, 3 million tonnes of iron ore in Caofeidian Port and export 5 million tonnes of products which could significantly release the company’s transportation pressures, reduce transportation cost and materials loss.
Nine steelworks in Hebei would not increase prices
It is reported that nine steelworks in province Hebei, which have accepted the mission of providing color coated steel sheet for earthquake disaster areas in province Sichuan, promised together recently that to confirm sufficient supply, to control the cost and not to raise prices.
Nine steelworks including Tangshan Steel and Handan Steel have accepted the mission to provide color coated steel sheet.
According to the arrangement, province Hebei accepted the mission to produce 80,000 sets of earthquake proof prefab four earthquake disaster areas and main raw materials are 10.84 million square meters of color coated steel sheet.
Chinese steelmakers to produce quake resistant rebar
It is reported that as the quality of construction steel has direct impact on the anti quake capacity of buildings, construction steel producers in Southwest China led by Kunming Steel and Shuigang are aiming to produce anti quake rebar.
As per repot the representation of anti quake rebar differs from current normal rebar by attaching capital 'E' to steel grade, such as second grade anti quake rebar with diameter of 16mm is described as 'HRB 335E 16mm'; and third grade anti quake rebar with diameter of 16mm, 'HRB 400E 16mm'.
Officials with Shuigang explain that anti quake rebar boasts higher strength, anti erosion and yield strength than normal rebar and it will be used as the key product for Southwest steelmakers in the reconstruction work in the quake affected areas as well as in the local and nearby region.
(Sourced from MySteel.net)
South Korea imports less Chinese H beam on high price
Steel Daily reported that China is shipping less H beam to South Korea due to low price in the destination market. While South Korean buyers have also cut import tonnage form other countries.
Export offers for H beam by Chinese producers have jumped to USD 1060 per tonne to USD 1070 per tonne CFR for delivery to South Korea. Transaction price is reported to be around USD 1020 per tonne to USD 1030 per tonne CFR, but there are not many contracts at the updated level.
Trading sources say that price in South Korean market is lower than those in other destination market for Chinese H beam exporters. Hence the average tonnage to South Korea is merely 35,000 tonnes to 45,000 tonne.
The major reason for drop in imports is sharp increase in export price of Chinese H beam. Total H beam imports during January to April 2008 are 320,000 tonne down by 20.6% YoY. Japan supplied 103,000 tonne and China exported 203,000 tonnes.
(Sourced from MySteel.net)
Update on domestic plate prices in China
Shanghai
1. 16mm medium plate provided by Yingkou is offered at CNY 6600 per tonne
2. Plates provided by second grade steelmaker is quoted at CNY 6230 per tonne to CNY 6250 per tonne
3. 40mm low alloy plate is posted at CNY 7000 per tonne.
Beijing
1. 16mm to 25mm medium plate is mainly quoted at CNY 6350 to CNY 6400 per tonne
2. Low alloy plate is posted at CNY 6700 per tonne.
Tianjin
1. 16mm to 25mm medium plate is offered at CNY 6320 per tonne
2. Low alloy plate is posted at CNY 6700 per tonne.
Guangzhou
1. Price for 14mm to 28mm plate is posted at CNY 6700 per tonne
2. 30mm heavy plate is posted at CNY 6800 per tonne
3. Low alloy plate is posted at CNY 6890 per tonne.
(Sourced from MySteel.net)
Sinosteel seeks nickel ore in Indonesia to supply Baosteel
Bloomberg reported that Sinosteel Corp China's second biggest iron ore trader is spending several million dollars prospecting for nickel ore in Indonesia to supply a Baosteel Group Corp venture.
Mr Zou Zongan director of PT Sinosteel Indonesia said “The prospecting started last year and we hope it concludes by the middle of next year.''
Mr Chong Dahai China Metals analyst said Sinosteel and other Chinese companies are seeking resources to feed an economy that grew 11.9% in 2007.
Sinosteel and Baosteel, China's biggest steelmaker are building a CNY 1.8 billion nickel pig iron plant in China Northern Province of Hebei.
Handan Steel announces new prices
It is reported that Hebei based Handan Steel released its latest EXW price on the basis of prices published on May 18th 2008:
Wire Rod, Rebar and Round Bar: unchanged.
Q235 6.5mm common carbon wire rod is quoted at CNY 5940 per tonne
Q235 6.5mm high speed wire rod is posted at CNY 5980 per tonne HRB335 12mm rebar is posted at CNY 6080 per tonne
HRB335 14mm rebar is posted at CNY 6030 per tonne
HRB335 16mm to 25mm rebar is posted at CNY 5880 per tonne
Q235 16mm to 25 mm round bars is posted at CNY 5860 per tonne.
Medium Plate is up by CNY 120 per tonne.
Latest EXW price for Q235B 20mm medium plate is offered at CNY 6700 per tonne.
Prices listed above are inclusive of 17% VAT effective as of May 28th 2008.
(Sourced from MySteel.net)
HDG and PPGI price scenario in China
Boxing
1. 0.4mm galvanized sheet made by Hengtong is quoted at CNY 7650 per tonne
2. 0.5 mm galvanized sheets is posted at CNY 7300 per tonne
3. .1.0mm galvanized sheet is posted at CNY 6950 per tonne.
Shanghai
Price for 1.0mm galvanized sheet made by Anben Group prevails at CNY 7300 per tonne up by CNY 50 per tonne
0.5mm galvanized sheet made by private makers is posted at CNY 7670 per tonne up by CNY 70 per tonne
0.5mm color coated sheet made by Baosteel is posted at CNY 9200 per tonne to CNY 9300 per tonne.
Beijing
1.0mm galvanized sheet made by Anben Group is priced at CNY 7150 per tonne up by CNY 50 per tonne
0.5mm galvanized sheet made by private makers is posted at CNY 7400 per tonne
0.476 color coated sheet made by private makers is posted at CNY 7950 per tonne.
(Sourced from MySteel.net)
Shougang slag used for Olympic venue construction
According to reports from Beijing 2008 Project Construction Headquarters, steel manufacturer Shougang Group has provided more than 1.4 million tonnes of waste slag as backfill for Olympic venue construction.
The report added that following the "Green Olympics" concept and using thorough scientific research, Shougang Group has turned the waste slag into useful backfilling materials for National Stadium and other Olympic venues.
Tests have shown that the slag turned backfill meets China's standard of environmental protection. Not only does the slag reduce the amount of sandstone and concrete needed as backfill, it also reduces costs and energy.
CDQ device put into operation in TISCO
It is reported that recently, the 2×150 tonnes per hour CDQ device which is contracted by China Metallurgical Coke Resistance Engineering Company and match with 2 of the 7.63 meters high coke furnaces in TISCO Stainless Steel Company was put into operation.
It is the first full closed CDQ device in the world, not only has beautiful shape, but also more cleaner.
As per report CDQ is the shortened form of dry out the coke, is one of the world’s advanced coke technology and also the energy saving and emission reduction technology for iron and steel industry. It can bring great environmental benefits, economic benefits, and energy saving effect compared with the conventional wet out of coke technology, because it adopts inert gases to put out the hot coke.
Meigang 220KV transmission electricity system put into operation
It is reported that, Meigang’s 220KV transmission electricity system formally put into operation. It all adopted international and domestic advanced equipments, using energy-saving variable transformer with high technological contents.
As per report the construction speed of this project was quick, Meigang Company together with Su Yi Company and Yuanneng Company completed the six kilometer long cable ditch project timely
Rebar prices remains steady in Chongqing
It is reported that the market prices of Φ6.5mm general wire made in Dagang and 8mm high speed wire made in Weigang are both CNY 5,950 per tonne in Chongqing, while prices of 12mm II grade rebar made in Chonggang and 18mm to 25mm II grade rebar made in Dagang are CNY 6,050 per tonne and CNY 5,830 per tonne respectively.
Despite of the earthquake, steel market are resuming gradually. It is realized by traders that some building sites has reopened and market demand is recovering gradually now.
Shandong government to intervene in steel pricing
It is reported that in order to support quake relief and the followed reconstruction, Shandong Province issued an urgent notice asking the local authorities to ensure supply of products needed in quake rescue and relief and keep their prices stable.
As per report in order to support the relief it requires enforced coordination between the local development and reform committees and other related departments to link up production and supply of the needed products. The enterprises are hoped to expand output and meet demand for tent support and temporary housing construction.
On pricing of the products supplied to quake hit areas, like tube, HR sheet and coil, color coated steel etc as long as the products are produced and sold in Shandong province, the prices should stand in line with the level posted on May 11th 2008 but not exceed that and the higher posted prices should be chopped in tune as of the day of the notice issuance.
Moreover, the local authorities are required to closely track the implementation of the pricing policy and undergird monitoring of the prices and supply conditions while timely reporting violations.
(Sourced from MySteel.net)
Domestic market scenario of CR in China
Shanghai
CRC prices edge up too with Angang made 1.0mm sheet quoted at CNY 7200 per tonne
1.2mm to 2.0mm sheet is quoted about CNY 7150 per tonne and 3.0mm sheet above CNY 7900 per tonne
Handan Steel-made 1.0mm coil is offered at CNY 7050 per tonne up by CNY 20 per tonne to CNY 50 per tonne in general.
Beijing
CRC prices hold firm
1.0mm sheet remains at CNY 7100 per tonne.
Guangzhou
CRC also stands steady with 1.0mm sheet made by Angang quoted at CNY 7150 per tonne.
Magang and Baogang made 1.0mm coil in the space of CNY 7020 per tonne to CNY 7050 per tonne.
(Sourced from MySteel.net)
Investment fund planned for Caofeidian
According to Mr Zhao Yong Tangshan city government's secretary, an industrial investment fund will be established before the year's end to finance Caofeidian industrial area.
He said that "We are making great efforts to establish a financial platform to power the development of companies and industries in Caofeidian. The fund is expected to make financial access easier for projects and businesses in the area."
In October 2005, the central government selected the Caofeidian industrial zone as a pilot area for developing the recyclable economy. Since then, great efforts were made to construct facilities and infrastructure for water and power supplies, and transportation and telecommunications.
Chengde Steel sales revenue in Q1 reaches CNY 5.3 billion
It is reported that Chengde Steel in North China's Hebei province has sold 1.06 million tonnes of steel products in the first quarter of 2008 up by 274,300 tonnes from 2007 with sales revenue of CNY 5.325 billion.
As per report Chengde Steel achieved the good performance against the backdrop of soaring raw materials prices, difficulties in reclaiming capital and volatile market climate.
Chengde Steel reclaimed cash of CNY 1.5 billion in Q1 enabling the company to maintain its normal production and it also registered best performance in terms of monthly sales volume and revenues.
(Sourced from MySteel.net)
SHFE poised to launch steel futures in China
According to Mr Wang Lihua director of Shanghai Futures Exchange while speaking at the 4th Shanghai Derivatives Market Forum held in Shanghai this week that Chinese steel product futures is ready to come out in the near future.
Mr Luo Binsheng deputy chairman of China Iron and Steel Association said "Rebar and wire rod are expected to be first futures varieties and it is going to exert great impact on world steel market. “
He said that China should first launch rebar and wire futures as the two products are relatively simple to introduce into futures contracts, and then later expand into futures trading on other steel products. It is also help SHFE to get the international pricing power in the future.”
He added that China status both as a large steel product producer and consumer is a solid basis for the proposed steel product futures trade.
Steel product futures will help stabilize China’s domestic steel market and aid China’s transformation into a more powerful player in the global iron and steel market.
Bengang Steel Plates Co Ltd appoints Mr Kang Wei as GM
Bengang Steel Plates Co Ltd announced that Mr Kang Wei will replace Mr Li Mohua as General Manager in the Company.
Panzhihua starts Yibin Pyrites mine project
It is reported that Panzhihua Mining's Yibin Company Ltd celebrated its opening ceremony at Xingwen Vounty in Yibin Sichuan.
Xingwen County is abundant in pyrites resource and Panzhihua Steel has signed strategic cooperation agreement with the local government and Jinwei Group in December 2007 and established the joint venture six months later.
With registered capital of CNY 200 million, Panzhihua Steel contributed CNY 160 million to the JV with the remaining CNY 40 million provided by Jinwei Group. The JV can produce 200,000 tonnes of pyrites ore and 80,000 tonnes of vitriol ore per annum.
The JV would start expansion project for the local Chuannan pyrites mine soon. And the mine would boast 1m-tpy of pyrites ore production capacity after the completion of first-stage construction in 2010 and the capacity would reach 6 million tonnes after the second-stage completes.
(Sourced from MySteel.net)
Baotou Rare Earth stops production to stabilize prices
Baotou Steel Rare Earth announced that it decided to stop to supply rare earth concentrates to the rare earth enterprises for one month as well as stopping production in order to stabilize the rare earth products’ market prices.
Through the company’s forecast, the output will be reduced by 1,400 tonnes because of the stop production. The company will make up for parts of the debt in the second half of the year and make efforts to ensure the full-year output not be affected. During the shutdown period, the company will continue to sell the inventory.
At the same time, the company also expressed that the products of rare earth mill run, rare earth metal products in the company headquarters and the subsidiary’s rare earth metal products, hydrogen alloy powder, nickel hydrogen batteries, cerium carbonate, cerium hydroxide, rare-earth polishing powder, europium oxide, and other products are remained normal production.
WISCO to increase by products volumes
According to WISCO Group the production capacity of the crude benzol refining system, which mainly produces asphalt and naphthalene and the tar, will reach 300,000 tonne per year and 1 million tonnes respectively. At present, the production capacity is 45,000 tonnes per year and 150,000 tonnes per year respectively.
With the continuous expansion of WISCO’s coke production scale, the deep processing capacity of coal chemical products is deficiency and is easy to make waste.
Experts from China Coking Industry Association, and other units gathered in Wuhan Iron and Steel Company to demonstrate the coal chemical products deep processing plan of WISCO.
The experts suggested that during the implementation of the project, it will try best to improve the environmental protection measures, make the colligation yield of the project be higher, and lower power consumption.
Jigang and Volvo ink strategic cooperation agreement
It is reported that recently, Jina Iron and Steel Group Company and Volvo Construction Equipment Company signed strategic cooperation agreement. Mr Wang Jun Jigang Group’s board chairmen, Mr Zhang Jiaxin deputy GM and the president attended the signing ceremony.
Mr Wang said that “Volvo is a world famous enterprise group and has formed world’s leading core competitiveness. In recent years, Jigang Group and Volvo Group especially the Volvo Construction Equipment Company continued to deepen the communication, the similar corporate culture and the common value pursuit make Jigang and Volvo Construction Equipment Company