Sino-Global Shipping America, Ltd a leading, non state owned provider of shipping agency services operating primarily in China announced that it has signed a joint venture agreement with Australia based Rocklands Richfield Limited.

Listed on the Australian Securities Exchange, RCI's two primary businesses are coal exploration in Australia and coke processing in China. In Australia, RCI has a controlling interest in three proven, high-grade coking coal deposits in the Bowen Basin of Queensland. In China, RCI's fully controlled subsidiary, Coke & Chemicals, processes coking coal and other by-products, with total revenues of approximately AUD100 million in fiscal year 2008.

Mr Cao Lei CEO of Sino-Global's said "We are excited about our partnership with RCI and look forward to leveraging our leading shipping agency services through this joint-venture. In addition, we expect that this joint-venture will allow us to utilize our extensive experience providing shipping agency services into complementary areas such as handling cargo, renting and staffing ships, and to provide shipping agency services encompassing river transportation to and from RCI's coke production facility in Huaibei."

The proposed joint-venture company will serve as a shipping operator for cargo ships carrying imported goods to China. RCI and Sino-Global anticipate that the joint-venture will primarily serve coal-carrying ships from RCI's mining operations in Australia to its coke processing facilities in China. RCI and Sino-Global have each agreed to contribute USD 250,000 to fund the joint ventures start-up and operations, and up to an additional USD 250,000 each as needed to operate the company and support its business development activities. The joint-venture will be structured as a British Virgin Islands company, and RCI and Sino-Global will each own 50% of the company.

Mr Wu Pun Yan executive chairman of Rocklands Richfield said "Currently we are processing approximately 480,000 metric tons of metallurgical coke per year at our factory in eastern China and expect an expansion project which will lift our total capacity to 1.2 million tonnes per year. Sino-Global's high-quality and timely shipping services combined with the joint-venture's shipping operations platform will help us to link our supply chain and distribution channel seamlessly from raw material supply in Australia to our coking factory in Huaibei, China, and eventually to steelmakers throughout China."

The joint-venture was funded by Sino-Global's internal cash position. The transaction has been approved by Sino-Global's board of directors and is expected to close, subject to customary closing conditions, in March 2009.

general market seems to be worse than previous week. Some negative price tendencies that we saw last week found development.
As for billets - producers tries to keep levels of 340-350USD/t FOB, i.e. same levels of last week but on the very beginning of current week I heard that buyers are pushing prices downwards to 320-330USD/t and it seems there were some deals at 325USD/t. So, the expectations are not positive and prices may deep further (now 300-310USD/t as “buyer’s” price is discussed).
For finished longs prices depends on target markets. The general situation is more stable than for semis, which are reacting on market conditions changes more quickly.
For flat products the situation is comparatively stable as well, but under the pressure of weakening demand (Middle and Far East mostly) suppliers had to decrease prices a little bit. The market sentiments are also not strong.
Best regards,