Indian Steel Price Index shows upward trend this week

LPPI – Long Product Price Index
FPPI – Flat Product Price Index
ISPI – Indian Steel Price Index

(Sourced from www.steelprices-india.com)

Chinese HRC imports into India at Mumbai

It is learnt that 22000 tonnes of Chinese HRC in structural grade has been booked by two local traders at USD 1030 per tonne CNF Mumbai. The consignment is expected to reach Mumbai by end August.

As per market sources, this consignment may depress HR prices in Mumbai as the landed custom cleared price would be about INR 53,000 per tonne EX Mumbai Port as against prevailing current domestic price of 55,000 per tonne in Mumbai

(Sourced from www.steelprices-india.com)

ISPI - Barometer for steel price trends in India

Amidst the currently prevailing volatile and speculative steel price scenario in India, SteelGuru.com has started the much needed barometer to track and measure the price movements on daily basis.
Steel prices being an issue at the forefront in the context of inflation, drawing significant government attention, making up for about 4 per cent in the Wholesale Price Index(WPI), has been media’s most favorite and hot topic at the moment. Unfortunately, the facts are misrepresented very often due to complexity in the structure and the dynamics of the steel market, leaving the users of the information mostly in a state of confusion.

In order to provide an index for steel prices, we call it SENSEX for steel, SteelGuru.com decided to work on both long products and flat products for respective category indices as also a composite one for steel. We call them LPPI, FPPI and SPI and have started releasing these indices with effect from July 1st 2008, after taking June 30th 2008 as base.

LPPI is based on daily market prices of three benchmark products rebars, wire rod and sections in 4 metros, whereas FPPI is based on HRC, plates, CR and HDG. These indices have been built considering their respective weights in the composite categories as also in the shares of sales in the regional markets.

The pricing input is from www.steelprices-india.com, which publishes market transaction prices of benchmark products among select locations 5 days a week.

These price indices outline the way domestic steel market is moving day by day and will help producers, agents in the supply chain, steel buyers, bankers and analysts in their respective businesses.

HZL Q1 net profit at INR 848 crore

Hindustan Zinc Limited has announced its results for the Q1 ended 30th June 2008. Its revenue and net profit for Q1 were INR 1,644 crore and INR 848 crore respectively.

According to the release, in Q1, HZL produced 127,889 tonnes of zinc up by 38% YoY and 17,298 tonnes of lead up by 27% YoY respectively compared with the corresponding prior quarter. The mined zinc metal and lead metal production was marginally up at 138,278 tonnes and 17,298 tonnes respectively.

The release added that during the quarter, the sale of zinc and lead concentrate was lower at 10,507 tonnes as compared to 54,385 tonnes in the corresponding prior quarter. This was primarily on account of higher smelter production, leading to a decrease in the surplus concentrate available for sale.

The positive impact of higher volumes on sales and PBDT in Q1 was offset by the adverse impact on account of a decline in zinc LME prices by 42%.

PSL net in Q1 up 52% on heavy orders

Reuters reported that Indian steel pipe major PSL Limited cited that its quarterly profit increase by half on heavy orders as soaring crude oil prices boosted demand for pipes from explorers and oil and gas transporters. PSL recorded net profit of INR 260.4 million in April to June on a 59% increase in net sales to INR 6.5 billion.

Mr Ashok Punj MD of PSL said that an unprecedented increase in prices of crude oil makes it worthwhile for exploration companies to push the boundaries to find new deep sea deposits. With crude at over USD 140 a barrel, these marginal fields have suddenly become productive. That is the kind of pull oil prices have on pipe demand."

According to the report, marginal fields are either too far from the consuming areas or produce lower net. Crude oil has increase over 50% so far in 2008 making deep sea exploration more lucrative and attracting investments in the segment.

GAIL signs MoU with BPCL

Projects today reported that GAIL & Bharat Petroleum Corporation signed a MoU for cooperation in the areas of natural gas transmission and distribution, LPG pipeline, city gas projects, exploration & production, use and marketing of naphtha, infrastructure projects and technology & knowledge sharing.

As per report, both the companies have agreed to cooperate and examine various options available for transmission or distribution of BPCL's gas from different sources on ownership or contract carriage or common carrier basis through the existing pipeline network of GAIL and new infrastructure being created and planned by GAIL. Both companies have also agreed to co operate each other in sourcing of natural gas or LNG from overseas along with cooperation in developing LPG pipeline network from existing or new production centers.

GAIL India Limited said that GAIL & BPCL are already partners in JVs for implementation of city gas projects in Delhi and Kanpur. Further, incorporation of JV between GAIL & BPCL for implementing city gas projects in the important cities of Kerala and Karnataka is being taken up expeditiously.

ONGC and UCIL for uranium mining alliance

BS reported that Oil and Natural Gas Corporation plans to enter uranium mining in alliance with public sector Uranium Corporation of India aiming to tap the business opportunity from nuclear fuel shortage in India.

As per report, Oil and Natural Gas Corporation is aligning with Uranium Corporation as the latter is the only entity allowed to undertake uranium mining in India and has the power to allot mining leases to others like ONGC. ONGC nuclear mining is similar to onshore exploration for oil and gas and it hopes to leverage expertise in this field.

A senior official said that "It is a good time to get into the business. Opportunities for uranium mining will come up now that the nuclear deal with the US is likely to come through."

Analysts said that India which has only 0.8% of the world's uranium reserves will need to double its current reserves of 78,000 tonne to meet its plans to generate 20,000 MW of nuclear power by 2020 assuming that the fuel is used only once.

Orissa can emerge as aluminum hub

PTI reported that about 60% of the country's bauxite reserve Orissa seems to be unable to add value to the rich mineral deposits although it signed 49 MoUs for setting up steel plants with a proposed investment of INR 300,000 crore.

Mr Ashok Dalwai Industries Secretary of Orissa said that "Like steel Orissa can also emerge as the aluminum hub of the country by utilizing its rich mineral deposits."

Vedanta has already come forward to set up aluminum and alumina plants in the state.

Green Planet ink MoU for Punjab biomass projects

It is reported that Green Planet Energy signed a MoU with Punjab Agro Industries Corporation for setting up 14 biomass power projects in Punjab. The total investment is estimated to be around INR.960 crore.

The project proposed under Agri Mega Project Scheme of the Punjab government, the company has planned to generate 147 MW of power in the state and the whole project will provide direct employment for 3,000 persons and indirect employment for more than 7,500 people.

Green Planet is a SPV formed by a consortium of 3 companies namely Kamala Mills, Darashaw & Co and MPPL Renewable Energy to promote biomass based power projects.

TATA Motors looking at electric cars

Reuters cited Mr Rata chairman of TATA Motors Limited as saying that India's top vehicle maker is looking at launching an electric car and other fuel efficient vehicles.

He said at the annual shareholders meeting that TATA Motors Limited which is set to roll out the worlds cheapest car would also expand its presence in the defense equipment business.

CCEA approves Eicher Motors JV with Aktiebolaget Volvo

It is reported that the Cabinet Committee on Economic Affairs approved a JV between Eicher Motors & Sweden based Aktiebolaget Volvo.

As per report, the foreign partner will invest 45.6% in the paid up equity share capital of Eicher Motors India incorporated by Eicher Motors in March 2008 for its commercial vehicles business. The cash investment by Volvo and its subsidiaries will amount to USD 275 million. Eicher Motors which will hold 54.4% stake will transfer its truck, bus and component business as well as engineering services to the JV.

ACC profit in Q1 drops by 27%

It is reported that India's largest cement maker ACC has posted a 27% drop in quarterly profits as increased raw material costs and government taxes adversely affected the cement industry. The company's net profit stood at INR 255.06 crore for the quarter ended June 30th 2008 as against INR 349.03 crore posted a year ago.

ACC said that the industry would be under pressure due to staggering increase in input costs and pressures to cap selling prices. Total revenues of the company went up marginally by 1.52% at INR 1,920 crore as against INR 1,891.28 crore reported a year ago.

ACC said that "Unless the industry is able to recover cost increases through suitable adjustments in selling prices through rational economic considerations, the cement industry will be under pressure." The company added an interim dividend at the rate of 100% to the shareholders.

Medium beam prices surge at Mumbai

The price of Joist has gone up by INR 2380 pmt due to short supply from local manufacturers due to power shortage.

Price in INR per tonne
Inclusive of ED and VAT
Delivery – FOT

(Sourced from www.steelprices-india.com)

Bharati Shipyard loan facilities rated CARE A+, PR1+

ET reported that CARE has assigned ‘A+’ rating to the long term bank facilities of Bharati Shipyard Limited which implies the instruments offer adequate safety for timely servicing of debt obligations and carry low credit risk.

Bharati Shipyard’s short term bank facilities have been rated ‘PR1+’. Instruments with this rating would have strong capacity for timely payment of short term debt obligations and carry lowest credit risk. These ratings are assigned to the short term and long term bank facilities aggregating INR 3,116 crore.

As per report, the rating derive strength from professionally qualified and experienced promoters as well as management, favorable industry scenario for oil & gas exploration sector in house vessel design capabilities of Bharati Shipyard, comfortable gearing level, stable profitability margins, strong and growing order book position demonstrating visibility in revenue and higher proportion of repeat orders in the order book.

The report said that the rating is constrained by project risk associated with the expansion projects, adverse outcome on the government subsidy issue and concentration of order book to oil & gas exploration sector. Inherent cyclicality in the ship building sector and execution of long orders within timeframe are the key rating sensitivities

ArcelorMittal acquires stake in service center network in Brazil

ArcelorMittal has acquired a 70% share of Manchester Tubos e Perfilados SA, the Brazilian steel processor and distributor located in Contagem, Minas Gerais.

Manchester was founded in 1989 and is privately owned. It serves the construction segment, which represents 50% of its activity, as well as the industry and automotive segments. Its capacity is 240,000 tonnes per year for end products, and 60,000 tonnes per year for processed products like cut to length and slit products. 2007 net sales were BRR 270 million. The company employs 500 people.

This new acquisition will reinforce ArcelorMittal's downstream position in Brazil, following the acquisition on April 3rd of a 50% stake in Gonvarri Brasil. With the acquisition of Manchester, and with its partnership with Gonvarri, ArcelorMittal will widen its product offering in the distribution segment in Brazil. The Group will now offer an extended range of flat products including coils and blanks, profiles, tubes and pipes.

Mr Michel Wurth member of the Group Management Board and in charge of Steel Solutions and Services said “From this new location, ArcelorMittal will target the construction market. Penetrating this fast growing market with a diversified offer, from tubes to structural profiles, is considered as a great opportunity for the Group."

Japanese steel export hits record in H 1

JMB reported that Japanese steel export increased by 11.1% YoY to 19.841 million tonnes in January to June from same period of 2007 and the export value increased by 8.2% YoY to JPY 2.15 trillion.

The volume and value was record since start of the statistics in 1979. The export increased for European Union and Asian countries while the export dropped for USA both in volume and value.

The steel import decreased by 13.1% YoY to 3.941 million tonnes and the import value increased by 5.1% YoY to JPY 534.036 billion. The import volume decreased from USA, EU and Asia while the value decreased from USA and EU.

Harsco bags major service contract from ArcelorMittal Dunkirk

Worldwide industrial services company Harsco Corporation announced that its worldwide mill services division has been awarded a new ten year contract valued at more than USD 60 million over its duration to provide on site environmental services to ArcelorMittal's massive Dunkirk steel works in northern France.

The contract underscores Harsco's growing role in developing and executing integrated environmental solutions for the global metals and minerals industries.

Harsco's award includes the construction of a new dehydrating plant that will process the mill's blast furnace and melt shop sludge by-products into reusable filter cake material suitable for use within the steelmaking process as well as other external applications. The award also includes the screening and blending of various by-product materials for on-site recycling to the mill's sinter plant, which produces materials for charging the mill's three blast furnaces. Work is scheduled to commence at the beginning of 2009. Harsco's services will enable the mill to replace its previous storage of sludge materials in on-site settling lagoons, a practice that is now environmentally prohibited by French authorities. The Dunkirk mill is a fully integrated carbon steel plant and one of the largest within ArcelorMittal.

Mr Geoffrey D H Butler president and mill services group CEO of Harsco said that "As this contract demonstrates, Harsco's combination of market leading technology, experience and capital gives us a strong foundation for addressing the critical environmental requirements of our customers.” He said that Harsco's mill services division serves the world's leading steel and metals-producing companies as an integral, on-site service partner at more than 170 locations in 35 countries. The division's comprehensive services include integrated materials handling, semi finished and finished product management and by product management.

ArcelorMittal to meet 80% of iron ore needs from own mines by 2014

Thomson Financial reported that ArcelorMittal plans to boost the output of iron ore from its own mines to 80% of its total needs by 2014, spending USD 6 billion on related acquisitions and production upgrades in the mid term.

Mr Bill Scotting head of strategy said that as part of its strategy to reduce dependence on external suppliers of feedstock, the world's largest steelmaker will also boost in house production of coking coal. He added that the company will not resort to price cuts to win a higher share of the steel market.

The rate of iron ore from ArcelorMittal's own mines used for steel production is currently 45%. Mr Scotting added that there is no percentage growth target for coking coal but the rate of own production will rise in line with buying opportunities.

Gerdau plans to produce HRC

It is reported that Brazil's steelmaker Gerdau which mainly supply long products, has decided to produce hot rolled coil product. It will announce if the plan to be effective by the end of this year.

The executive VP of Gerdau Acominas said that Gerdau’s production capacity of hot-rolled coil will be at least 2.4 million tonne a year. And it will set up its third blast furnace in the Acominas unit for hot rolled coil production.

(Sourced from YIEH.com)

CSC Q2 unaudited pretax profit rises by 31.4% YoY

It is reported that China Steel Corp unaudited pretax profit was TWD 18.84 billion in the second quarter to June up by 31.4% from the first three months of the year.

It added that sales rose 16.77% sequentially to TWD 66.97 billion. Its second quarter steel output rose 1.67% from the March quarter to 2.57 million tonne while sales fell 1.05% to 2.59 million tonne.

US Steel receives approval for new coke oven battery

Pittsburgh Business Times reported that US Steel Corp on Friday received approval from the Allegheny County Health Department to install its new coke oven battery at the Clairton Coke Works.

As per report US Steel is planning for the new battery to replace three older batteries. Construction is expected to be complete by December 2011. A second new battery is planned to replace three other old batteries by 2014.

The new batteries are expected to include state of the art pollution controls that will help improve air quality in nearby communities. The area, which includes about 25,000 people who live in Clairton, Glassport, Liberty, Lincoln and Port Vue, is classified as a non-attainment area for failing to meet national air quality standards for fine particulate pollution.

County Health Director Dr Bruce W Dixon in a statement said that "The two new batteries, combined with extensive rebuilding of the plant's six remaining batteries, will dramatically improve air quality and help bring the Liberty/Clairton area into attainment.”

Tokyo Steel lowers forecast as profit plunges 94%

Bloomberg reported that Japan's biggest maker of steel girders Tokyo Steel Manufacturing Co posted a 94% drop in profit and lowered its forecast for annual earnings as raw material costs rose faster than product prices.

Tokyo Steel in a statement said that its net income plunged to JPY 328 million (USD 3.1 million) in the three months ended June 30th 2008 from JPY 5.4 billion a year earlier. Full year profit will probably be JPY 12.5 billion as compared with the previous forecast for JPY 14 billion. Sales rose 14% to JPY 69.8 billion.

Tokyo Steel has also raised prices for H beams by 60% since January compared with a more than 70% jump in scrap, which gained on increasing demand from South Korean and Taiwanese mills. Scrap prices will probably average JPY 71,500 a tonne in the year ending March 31st 2008.

Mr Eiji Sakabe MD of Tokyo Steel said that “Scrap prices are too high and domestic demand, especially for steel rod and sheet, is unclear.” He said that sales will probably decline 6.5% this fiscal year to about 3.1 million tonne.

Tokyo Steel also posted its second consecutive quarter of operating loss, reporting a JPY 477 million deficit as compared with operating profit or sales minus costs of JPY 8.5 billion a year earlier.

Indian Steelmakers Directory 2008

The fast developing Indian steel industries are continuing beyond what most believed was possible. As one of the world's fastest growing economies, India has become the most happening place among world steel market over last few years and thus is in the radar of not only Indian but most of global players associated with steel industry. But due to fragmented nature of industry, a comprehensive list of smaller steel makers is not readily available.

"Indian Steelmakers Directory 2008' is one the top sources of information available on steel making companies in India. Indian Steelmakers Directory' is one of the most comprehensive and accurate directory of Indian steel companies that have ever been published. This powerful directory is your connection to the entire Indian steel industries sector.

Published in February 2008, “Indian Steelmakers Directory 2008” has been comprehensively researched and prepared, to bring you a fully up to date guide to India's rapidly growing steel makers. This Directory will be extremely useful to businesses that deal specifically with companies in the iron and steel industry, ferroalloys, consumable suppliers, raw material sellers, equipment makers and others.

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This directory covers name and details of 720 of Indian steelmakers in Alphabetical as well as location wise order.

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• Company name -723 entries
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• Phone number-723 entries
• Fax number -590 entries
• Email -446 entries

Report Summary:
1. Published: Feb 2008
2. Format PDF File (Delivery by Email on receipt of payment)
3. Total no of pages – 396

Price: USD 1250 or equivalent in INR
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You can order your copy to reports@steelguru.com

IMF raises global economic growth forecast

This week’s survey by the National Association for Business Economics offered a less than stellar outlook for the balance of this year, with most economists figuring that the US economy will, at best, mark time at below trend growth in gross domestic product. As observed by Ken Simonson, chief economist with the Associated General Contractors of America, “Most forecasters are suggesting the outlook will be sluggish, but not desperate.”

Offering a slightly more upbeat picture for the domestic and global economies, the International Monetary Fund raised its global economic forecast for this year and 2009 because, it said, the effects of the credit crisis were not as bad as expected so, last week’s revised estimates now expect the world economy to grow by 4.1% this year, up from 3.7%.

The US economy, meanwhile, will expand by 1.3% this year, said the IMF and not the 0.5% it estimated earlier. The US is pegged at 0.8% growth for 2009 since the IMF also warned that inflation is mounting in both advanced and emerging economies, despite the global slowdown. In many countries, the driving force behind higher inflation is higher food and fuel prices.

Meanwhile, on the domestic housing front, sales of existing homes for June fell more than expected to a seasonally adjusted annual rate of 4.86 million units and sales are 15.5% below where they were a year ago. In addition, the median price for a home sold in June dropped to USD 215,100, down by 6.1% YoY. That was the fifth largest year over year price drop on record. Finally, the drop in sales pushed inventories of unsold single family homes and condominiums to 4.49 million units, representing an 11.1 month supply, the second highest level in the past 24 years.

Vallourec-Sumitomo JV buys furnaces for pipe plant

BNamericas reported that Vallourec & Sumitomo Tubos do Brasil has signed agreements with the Brazilian subsidiary of Luxembourg's Paul Wurth to purchase two blast furnaces with combined capacity of 600,000 tonne per year and other equipment for a Greenfield project in Minas Gerais state.

The JV between Japanese group Sumitomo Metals and French steel tube maker Vallourec is building a USD 1.6 billion seamless pipe mill at Jeceaba in the central part of the state.

The plant is earmarked to make 600,000 tonne per year of premium tubes which are to supply the worldwide oil and gas industry. The unit will also have a 1 million tonne per year crude steel mill, from which some 700,000 tonne per year will feed the pipe plant and the balance will belong to the French company.

The report added that the new plant, slated for startup in mid-2010, is due to increase Vallourec's worldwide production by 10%, while Sumitomo's global capacity will rise to 1.6 million tonne per year.

Reliance Steel abandoned share sales

Bloomberg reported that Reliance Steel & Aluminum Co canceled a sale of 6.75 million shares because of market conditions.

Reliance Steel & Aluminum in a statement said that it had planned to use the proceeds to help fund its USD 1.1 billion acquisition of PNA Group Holding Corp.

The company said it will instead use a new loan and other borrowings to pay for Atlanta based PNA, which operates steel service centers in the US and Mexico.

Pacific Steel hikes prices by 18%

New Zealand's steelmaker Pacific Steel Group has announced a price rise by 18% on its rebar and wire rod products, effective from September 1st 2008.

According to Pacific Group general manager, price increases are caused from soaring cost of scrap metal and additional factors are higher freight charges, price boost for electrodes, carbon and vanadium and weak NZ dollars.

The new price adjustment is followed by previous 25% rise in May, and 60% increase for the year.

Although prices climb dramatically, the demand in New Zealand and Australia continues to exceed supply. The company general manager comments that the price of steel will hold steady for a while after a series of rises.

Tung Ho Steel keeps H beam prices unchanged in August

Due to slow demand from the construction market, Taiwan’s Tung Ho Steel has announced to keep its H beam price unchanged in August, as the company’s new price will stay in TWD 36,800 to TWD 37,000 per tonne.

The heavy rains in July have forced delays of construction and construction steel prices are under pressure due to weak demand. Before Tung Ho made the price announcement, most of downstream users expected Tung Ho will slash its new prices; however, Tung Ho seems to make them disappointed.

Strong export business is the main reason behind, the company explained.

(Sourced from YIEH.com)

US rebar price to keep climbing

Although the domestic demand from US end users is not strong, a combination of low inventory in local steel mills, the strong global demand and domestic prices that are lower than the import price are causing the US rebar price to keep climbing higher.

Macsteel International USA, the steel long product distributor said that the supply shortage situation in steel long products will continue until the fourth quarter of 2008; therefore, rising energy and raw material cost will lead US domestic steel mills to pass along their cost to the end users.

Market participants projected that rebar price will keep rising during the rest of this year.

(Sourced from YIEH.com)

POSCO placed 1st as the most desired company to work in

It is reported that POSCO was placed 1st as the most desired company to work in by Korea’s company employees and job seekers.

On the 21st Korea Management Association Consulting presented the rankings from the 2008 the most desired company in Korea to work in which was a survey on 4246 company workers and 4th grade university students preparing for employment. This study targeted 323 Korean companies and selected the `best 30 companies as well as the top companies for each industry.

In the classification of key factors of attraction for workers in the viewpoint of HR according to the survey results, POSCO was highly appraised in four sections including the degree of vision attractiveness, HR management attractiveness, Corporate culture attractiveness and Overall attractiveness by which it was placed 1st in the manufacturing sector out of the best 30 companies.

2nd place in the manufacturing sector was taken by Samsung Electronics followed by Hyundai Heavy Industries, CJ CheilJedang and SK Energy which all made up the top 5 companies.

Thomas Steel Strip will fill customer orders

Vindy.com reported that Thomas Steel Strip will continue to fill customer orders despite a strike by production workers.

Mr Denny Wist president & COO of Thomas Steel Strip said that the plant will use its inventory of finished goods but also will continue to process steel. But he didn’t provide details in a news release.

As per report about 260 union workers walked off the job Thursday. Officials with Local 3253 of the United Steelworkers of America said they didn’t like the company’s pay proposal and wanted assurances that retirement benefits would not be reduced later.

Arctic Circle holds 90 billion barrels of oil

AFP quoted the US Geological Survey forecast recently that the Arctic Circle holds an estimated 90 billion barrels of recoverable oil, enough supply to meet current world demand for almost three years.

According to the report the forecast comes as Russia is competing with Canada, Denmark, Norway and the United States to grab a chunk of the huge energy resources in the Arctic, an area growing more accessible due to global warming melting the ice. The government agency also said the area could contain 1,670 trillion cubic feet of natural gas.

Mr Mark Myers director of USGS said that before we can make decisions about our future use of oil and gas and related decisions about protecting endangered species, native communities and the health of our planet, we need to know what’s out there. He added that with this assessment, we’re providing the same information to everyone in the world so that the global community can make those difficult decisions.

Mr Frank O’Donnell, president of the nonprofit group Clean Air Watch, said not only do polar bears and other wildlife within the Arctic Circle face losing their habitat due to global warming, they would be hurt by companies searching for oil. “On the one hand you may see this region more accessible but we’re definitely going to pay a different kind of price you may loose species. The oil industry goes up there and industrializes what has been a pristine area, suddenly it becomes the new Houston.

As per the report the 90 billion barrels of oil expected to be in the Arctic could meet current world oil demand of 86.4 million barrels a day for almost three years. But the Arctic’s oil is not intended to replace all the supplies in the rest of world. It would last much longer by boosting available supplies and possibly reducing US reliance on imported crude in the future, if America developed the resources.

The Arctic accounts for about 13% of the world’s undiscovered oil, 30% of the undiscovered natural gas and 20% of the undiscovered natural gas liquids, the agency said in the first publicly available petroleum resource estimate of the entire area north of the Arctic Circle. More than half of the undiscovered oil resources are estimated to occur in just three geologic provinces namely Arctic Alaska, the Amerasia Basin and the East Greenland Rift Basins.

Nippon Yusen and Mitsui OSK boost profit on bulk shipping rates

Bloomberg reported that Japan's two largest shipping lines Nippon Yusen KK and Mitsui OSK Lines Ltd boosted earnings as higher demand for coal, iron ore and grains more than offset more expensive fuel.

As per report Nippon Yusen boosted net income by 55% to JPY 44.4 billion (USD 413.6 million) in the three months ended June 30th 2008 and Mitsui OSK's profit jumped by 63% to JPY 55.3 billion.

The two companies are benefiting from China's demand for iron-ore to fuel a building boom before the Beijing Olympics start next month. Stronger earnings at the two Tokyo-based companies contrasts with a 17% drop in profit for Kawasaki Kisen Kaisha Ltd which gets more of its sales from shipping cargo containers.

Mr Mitsushige Akino who oversees about USD 560 million in assets in Tokyo at Ichiyoshi Investment Management Co said that “Rates for transporting commodities have increased and are boosting profits. With a further retreat in oil prices, combined with a conservative outlook by the shipping lines, their shares will be attractive.''

According to the London based Baltic Exchange, The Baltic Dry Index, a benchmark for the price of shipping bulk commodities such as iron ore, coal and steel, rose to a record last quarter. It averaged 9,725 in the three months ended June 30, an increase of 63% from 5,974 in the same period a year earlier.

PSMC Privatization - To be removed from the list

Mian Manzoor Ahmad Wattoo advisor to prime minister of Pakistan and minister for industries, production and special initiatives has said that the production capacity of Pakistan Steel Mills needs to be increased to make it more viable and to meet the increasing demand of steel in the country.

Mian Wattoo while chairing a meeting on expansion plans of PSM said that under the current expansion plan by end of current year, the production capacity would increase to 1.3 Million tonne per year from the current 1 million tonne per year. Under the second phase of expansion plan, by end of 2010, the capacity will increase to 1.5 million tonne per year.

He further informed that total increase in production during the current year will be 0.1 million tonne and capacity utilization will increase to 91 % from current 82 %.

Mian Wattoo said that to implement the expansion plan effectively it is necessary that PSM is removed from privatization list adding that PSM is a national asset and it should not be privatized. He assured the PSM administration that he will recommend to the prime minister that PSM should be de listed from the privatization list.

Middle East billet market quiet

Buyers in the Middle East have exited from the billet market and will not purchase for some time to come.

Summer vacation in Europe and high temperatures in the Persian Gulf are the key factors; besides, a large quantity of billet is on the way to Dubai and Saudi Arabia, which buyers in the areas purchased in May to June.

Some 250,000 tonne of billet will enter the market and are estimated to be consumed in 1 month.

(Sourced from YIEH.com)

PSM asked to focus on local raw materials

Mian Manzoor Ahmad Wattoo advisor to prime minister of Pakistan and minister for industries, production and special initiatives during a meeting on expansion plans of Pakistan Steel Mill was told that PSM spent PKR 25 billion during the current year on the import of iron ore and coal and the cost could rise to PKR 30 billion in the next year owing to increasing prices in world market and increasing freight charges.

Mian Wattoo stressed that every effort should be made to utilize the local raw material and PSM should make a plan that of the total raw material being used at least 20 % should be local.

He said that “It will help in reducing the cost of production besides giving employment to the poor people and generate economic activity locally. Incentives and technical know how should be given to the owners of mines and local people so that extraction and processing can be done on fast track basis.”

He instructed the PSM administration to focus on Balochistan in this regard.

Oil prices rebound

Reuters reported that oil prices rebounded from a seven week low recently in what traders said was technical trading and a short covering bounce after recent declines left the market oversold.

As per the report US light crude settled at USD 125.49 a barrel, up USD 1.05. London Brent crude settled at USD 126.44, up USD 1.15, after falling to a seven week low of USD 124.10 earlier.

Mr Andy Lebow broker at MF Global in New York said that it looks like we have a technical bounce on a short covering rally here, after crude has fallen about 16% from the record and heating oil about 15% from its own high. But it remains to be seen whether this rally will hold.

USD 750 million Blue Tunnel bid set for August

Todays Zaman reported that the Public Waterworks Administration's Region 4 administration will open a project bid for the Mavi Tünel project, expected to provide the Konya Plain with 414 million cubic meters of water annually, in August. The project is expected to cost TRL 750 million.

Mr Mevlüt Pınarkara DSİ Region Four Deputy General Manager while speaking with the Anatolia news agency said that the Blue Tunnel project, the most important leg of the Konya Plains Project is proceeding at a quick pace. A total of 414 million cubic meters of water in the Göksü Basin, which empties into the Mediterranean, will be redirected to the Konya Basin with the help of the Blue Tunnel project, facilitating the irrigation of land in the region and reducing pressure on groundwater in the Konya Basin.

Construction of Bağbaşı Dam, the first phase of the Blue Tunnel Project with its 180 million cubic meter capacity started last year. The second leg of the Blue Tunnel Project includes Afşar Dam, the Afşar Bağbaşı derivation channel, the Mavi regulator, the Apa Hotamış transfer channel and the Hotamış reservoir.

Mr Pınarkara said that the Hotamış reservoir will be constructed at the Hotamış marsh, which has already dried out, and added it will have a capacity of 580 million cubic meters. The water brought from the Göksü Basin will first be transferred to Hotamış reservoir and after that, sent for irrigation. We will fill the reservoir to full capacity every year. The target of the Blue Tunnel project is to bring in 414 million cubic meters of water but this number will be exceeded with the help of rain water and purified wastewater.

Mr Pınarkara also noted that thanks to this project a total of 223 million square meters will be irrigated and a total of 147.5 GWh of electricity produced and added that this water will also serve as drinking water in the city of Konya.

Gas Natural seeks more LNG from Qatargas

Gulf Times reported Spain’s Gas Natural was negotiating the purchase of 5 billion cubic meters of liquefied natural gas from Qatargas.

Spain’s leading gas supplier said in a statement that Gas Natural and Qatargas have agreed to extend and reinforce their commercial co operation by negotiating increases in supply in the future.

The report added that the two firms have established a framework to negotiate the purchase of 5 billion cubic meters of liquefied natural gas in the medium to long term.

Gas Natural, which currently imports about 2 billion cubic meters a year from Qatar said the increase in supply would help it face up for a rise in demand for gas in Spain and the rest of the world.

As per the report the company is seeking to reduce its dependence on imports of Algerian gas. Earlier this week it announced it had signed a deal with Russian state owned gas monopoly Gazprom to develop liquefied natural gas projects.

According to industry ministry figures, Algeria accounted for 34.6% of the total amount of gas which Spain imported between January 2007 and January 2008. But there has been friction recently between Algerian and Spanish energy firms.

Khalifa refinery to expand

Khaleej Times online cited Mr Ahsan Ullah Khan Pakistan’s outgoing ambassador as saying that the latest cost estimates of USD 5 billion for setting up an oil refinery project by Abu Dhabi’s International Petroleum Investment Company will increase substantially, as the project now will include a petrochemical city, power generation plant, a port and other necessary infrastructure.

Ambassador Khan speaking at a gathering organized by Pakistan Business Council added that the additional features of the Khalifa Coastal Refinery being built at Hub near Karachi, by IPIC and Pak Arab Refinery Company, will swell substantially as project will now include a petrochemical city where downstream industry will be established which will use feed stock from the refinery as raw material.

The other new component of the project will include a 250 MW power generation plant to run the mega project, a mini port terminal to be used for importing crude oil and exporting oil products, an electric power grid station, roads network, workers city and other necessary infrastructure.

According to the report the refinery project, announced by IPIC and Parco last year, will achieve a financial close by March. The refinery will produce 200,000 barrels of diesel per day apart from other petroleum products. The Government of Abu Dhabi owned IPIC will own 76% shareholding while Pak Arab Refinery will hold remaining interests.

Chinese mill making low offers for HRC in EU

During last 10 days to 15 days, a quite decent tonnage of HRC in commercial qualities, for pipe making and cold rolling, have been offered by 2nd and 3rd tier Chinese steel mills.

Price were ranging between USD 1030 per tonne to USD 1060 per tonne CFR FO one main European Port like Bilbao, Antwerp and Ravenna, with payment term of LC at sight.

Customer’s reaction had been, at first sight, quite positive, with few of them taking in serious consideration booking some tonnage. However with days passing on, was becoming quite clear that these offers were definitely still negotiable at cheaper prices and thus all customers changed mind switching to a wait and see attitude.

It is heard that an important Spanish SSC having booked 10,000 tonnes of HRC 3 mm and up from Beitai at EUR 685 per tonne CIF FO Bilbao with payment term of LC at 90 days from bill of lading date.

However other lots are still unsold with traders avoiding to take position as the sentiment is that price may fall further in the forth coming weeks.

Understand that HRC availability from China might have been determined by the mill's decision to produce for stock, trying to bridging up the period of closing or reduced activity imposed by the Chinese government in the effort of reducing pollution during Olympic Games.

One will have to wait and see by end of August or early September if this is just a "spot" situation or is the starting of a real change in price trend and market direction.

(Sourced from www.steelprices-india.com)

Growth of steel export in Hebei slowed down in H1

Hebei Workers' Newspaper reported that in H1 2008 the export of steel and other related products in Hebei province was valued at USD 3.33 billion increase by 28% YoY, which falls by a big margin than last year.

The main steel varieties for export totaled 3.04 million tonnes, declining 0.9% YoY, with the growth of value also dropping from 111.5% to 51.3%.

After the government took measures of lowering export rebate for steel products and of levying taxes since last April, effect has been seen in correcting the volume and structure of steel products for export.

Hebei's value added steel sheet and plate was seen an increase in export volume, while steel billet, crude forged piece, bar and rod products were cut down in export more or less.

According to statistics, the province exported only a total of 15,000 tons of steel billet and crude forged pieces with a value of USD 7.66 million, both down 97% YoY; exports for bar products and wire rod fell by 26% and 5.8% respectively.

Chinese rebar and wire rod export price decrease

It is reported that Chinese domestic construction steel market is quiet this week and export prices have seen evident decrease.

Taking Shanghai price for HRB335 20mm rebar as benchmark, the strength to initiate another round of increase will not disappear as long as it is above CNY 4900 per tonne. But the downward correction is expected to sustain for another 2 to 3 weeks.

Export offers for rebar have dropped by about USD 30 per tonne to USD 40 per tonne to USD 1040 per tonne to USD 1050 per tonne FOB and those with boron is about USD 980 per tonne FOB. Offers for BS grade rebar to Middle East are enjoying higher level of USD 1250 per tonne to USD 1300 per tonne CFR.

Quotations for wire rod with boron is being exported at USD 980 per tonne to USD 990 per tonne FOB up and offers for material without boron are at between USD 1100 per tonne FOB to USD 1120 per tonne FOB.

(Sourced from MySteel.net)

Lueyang Steel commissions new bar project

It is reported that 600,000 tonnes per year bar project in Luegyang Steel, which located in province Shaanxi, was put into production on 24th July and the project is able to produce 12mm to 40mm round bars and rebar.

Lueyang County of Shaanxi province was seriously effected by the earthquake in May 2008 and Luegang Company and its plant suffered serious losses, one worker was killed and many workers were injured, the losses of the company reach CNY 160 million.

The successful commission of the project reflected that Shanxi Lueyang Steel has fully resumed the production after the earthquake.

Qinhuangdao Shouqin to expand its plate mill capacity

Qinhuangdao Shouqin Metal Materials, China has placed an order with SMS Demag a company of the SMS group, Germany for the extension of its heavy plate rolling mill. The supply scope comprises a four high roughing stand, a shearing line with double side trimmer, slitting and cross-cut shears and a cold plate leveler. The facilities will become operational by summer 2010.

The 4.3 meter wide heavy plate mill, built by SMS Demag went into operation in October 2006. The installation of the roughing stand will raise the production capacity from 1.2 million tonnes to 1.8 million tonnes per year. The roughing stand has a rolling force of 90 MN and is equipped with hydraulic roll gap adjustment systems.

To process the increased output of plates, Qinhuangdao Shouqin has ordered a second shearing line, consisting of a double-side trimmer, a slitting shear and a cross cut shear. All shears operate according to the proven rolling cut principle. The cross cut shear is constructed in closed type design and is equipped with a movable limit stop for the exact setting of plate length.

The cold plate leveler can function with nine and five leveler rolls, and this gives it an extended leveling range. Optimum setting of the roll gap is made possible by the hydraulic individual adjustment of all leveler rolls in conjunction with the individual drives. The pertaining leveling model is likewise part of the supply scope.

EIA begins for Fangchenggang project

It is reported that project environment assessment center of Ministry of Environment Protection began to check the environment impact analysis for Fangchenggang Iron and Steel Project.

To adjust the structure of iron and steel industry in China, demolish the outdated capacities, improve the industry location, boost the cooperation and reform of iron and steel companies of different areas, move the plants from cities and strengthen the competing ability of iron and steel companies on July 17th 2008 National Development and Reform Commission gave approval to Guangxi Zhuang Autonomous Region and Wuhan Iron and Steel Company Ltd on primary work of Fangchenggang Iron and Steel Project.

According to NDRC, Guangxi and Wisco should demolish 5.41 million tonnes of iron melting capacity and 9.10 million tons of steel melting capacity. Meanwhile, NDRC asks Guangxi Auto Region to boost the merge between Liugang and Wisco and definite the investors, and though Fangchenggang Project, to realize the merge of Wisco and Liugang in practice.

Chinese HRC export prices still weak

It is reported that Chinese hot rolled steel exports are still slow and there is little transaction at moment. Less demand in low season and decrease in domestic market prices are believed to be major reasons.

Domestic HRC prices are still on the decrease. On Shanghai market, commercial 4.75mm to 12mm*1500mm HRC goes at CNY 5680 per tonne to CNY 5720 per tonne down by CNY 90 per tonne to CNY 100 per tonne WoW. That for 1800mm wide cargo goes at CNY 6150 per tonne down by CNY 70 per tonne from last week. However, price for commodity grade 2.75mm HRC goes at CNY 6300 per tonne up by CNY 50 per tonne from early this week.

Taking Shanghai price for commercial 4.75mm to 12mm*1500mm HRC as benchmark, there would be no room for increase unless it could not exceed CNY 6000 per tonne. It probably would keep fluctuating between CNY 5500 per tonne to CNY 6000 per tonne.

Export offers for commodity grade HRC are prevailing at USD 1020 per tonne FOB but there is few contracts this week as many are afraid of possible drop in the near future.

(Sourced from MySteel.net)

Shagang Group posts sales revenue of CNY 69.7 billion in H1

It is reported that Jiangsu Shagang Group continues to keep innovation, further optimize the product structure, deeply carry out energy saving and emission reduction etc, from January to June this year, Shagang Group totally realized sales revenue of CNY 69.7 billion, profit tax of CNY 9.83 billion, up by more than 26% YoY.

From January to June this year, Shagang’s export volume of high quality wire rod, hot rolled coil and heavy plate reached 1.16 million tons, the export value reached USD 870 million up by 50% YoY.

Shagang Group fully exerts the science and technology personnel advantage and international advanced level of equipment, on the basis of development of 38 kinds of new products last year, it successfully developed 9 kinds of high tech and high value added products including pipeline steel, high strength low-alloy structure steel, boiler steel, steel for high-rise building etc in the first half year, increases the new economic growth points.

Guangzhou to post 200% increase in H1 profit

Guangzhou Iron and Steel Company currently predicted that the accumulated net profit in the first half of 2008 would increase by 200% or so over the same period of last year’s more than CNY 21 million.

The detailed data would be revealed in the half yearly report later.

Output of rebar in China by province in H1 of 2008

It is reported that rebar production in June 2008 total 8.15 million tonnes down by 1.2% YoY as compare to 8.25 million tonnes in 2007 and the production in H1 2008 total 47.41 million tonnes down by 1.1% YoY as compared to 47.94 million tonnes in 2007.

In million tonnes

Output of welded steel tube in China by province in H1 of 2008

It is reported that welded steel tube production in June 2008 total 2.22 million tonnes up by 4.2% YoY as compare to 2.13 million tonnes in 2007 and the production in H1 2008 total 11.47 million tonnes up by 7.3% YoY as compared to 10.69 million tonnes in 2007.

In million tonnes

Mr Putin criticizes Mechel on pricing issues

Bloomberg reported that Russian steel and coal stocks plunged after Mr Vladimir Putin Prime Minister of Russia called for antitrust authorities to investigate OAO Mechel for its pricing of raw materials in Russia.

OAO Severstal, Russia's biggest steel producer, tumbled RUB 22.40 or 4.9%, to RUB 436.01 on the Micex Stock Exchange as of 11:31AM local time. OAO Raspadskaya, a coking coal producer down by 11% to RUB 169. The Micex Metals and Mining Index sank 6.4% to its lowest level since October.

Mr Putin criticized Mechel's billionaire shareholder Mr Igor Zyuzin for not appearing at a meeting with steelmakers yesterday and said the company should be investigated because it sold raw materials in Russia in the first quarter at twice the price of exports.

Zaporizhstal to finish BF PCI injection system in 2009

According to press-service of Zaporizhstal, the company will finish construction of pulverized coal injection unit in the autumn of 2009. It was also announced that the company has made the first payment to Siemens-VAI under the contract on the construction of the converter-concaster shop at the plant.

Millennium capital analyst said that “We believe the news is positive for the plant as we see that Zaporizhstal really proceed in the realization of its USD 1.7 billion to USD 2 billion modernization program, especially in the direction of switching from outdated open hearth furnace technology to oxygen converter steelmaking. ZPST’s open hearth shop will be decommissioned with the launch of the converter concaster shop.”

The analyst said that “The latter will include two 250 tonne converters, two ladle furnaces, one vacuum vessel, two slab concasters, and two pig iron desulphurization units. It will start operating in 2011 but will reach full capacity in 2012. The intention to produce 2.7 million tonnes of saleable slabs was also mentioned. The launch of PCI unit will enable ZPST to replace expensive natural gas to for cheaper coal in pig iron production. Current level of ZPST’s gas use is 100 CBM per tonne of pig iron. We look positive at the stock.”

(Sourced Millennium capital)

Mechel announce its official statement

In response to recent threat of investigation over domestic pricing, Mechel OAO has released the following official statement.

It said that “Mechel shares concerns of the Government of the Russian Federation, steel plants and metallurgical industry in regard to a growth in prices for steel products and raw materials in the recent time.”

The release said that “As was previously announced, Mechel has started the process of forming long term commercial relationships with key partners and have signed a number of agreements for delivery of its products to till the end of this year.”

The release added that “Mechel is ready for cooperation with federal authorities of the Russian Federation and, if required, will provide complete information on any arising issues.”

Russia raises 2008 GDP growth forecast

RIA Novosti reported that Russia's economics ministry has raised its forecast for this year's GDP growth. The previous forecast put the growth rate at 7.6%.

Mr Andrei Klepach Russia economic development deputy minister without specifying the new figure said "We have submitted to the Finance Ministry an adjusted forecast for 2008. He said that the adjusted forecast would be submitted to the government on August 7th.”

Mr Andrei Klepach said, Russia's GDP growth was 8% in the first half of this year, 8.4% in January to May and 8.5% in the first three months.

It was earlier reported that the ministry could raise its GDP growth forecast for 2008 from 7.6% to 7.8%. However, Deputy Prime Minister Alexander Zhukov told journalists recently that the indicator could reach 8% this year.

In 2007, GDP growth stood at 8.1%.

Bulgaria ratifies South Stream pipeline project treaty with Russia

Itar-Tass reported that Bulgaria’s parliament has ratified an agreement with Russia on the construction of the South Stream pipeline. The document was signed during the Russian president’s visit to Bulgaria in January and was submitted to the parliament for ratification in late June.

According to the report, under the agreement Bulgargaz Holding and Gazprom will have equal shares in the joint company that will control the construction.

The South Stream pipeline’s throughput will total 30 billion cubic meters.

The agreement is signed for 30 years and can be prolonged after expiration.

Daimler to acquire into Russian truck maker KamAZ

RIA Novosti quoted Moscow based Investment Company Troika Dialog said German auto giant Daimler may buy a 42% stake in Russian truck maker KamAZ.

Troika Dialog said Russian Technologies Corp a diversified industrial giant which holds 37.8% in KamAZ approved the choice of Daimler Trucks as the company's 'exclusive partner' after months of negotiations with a number of Western truck makers. It added that the deal could be closed before the end of 2008.

Troika Dialog said Daimler Trucks sees the acquisition of an interest in KamAZ as one option among others for entering the Russian market.

KamAZ, based in the Volga Republic of Tatarstan, produces more than 30 models of trucks, as well as trailers, buses, tractors and spare parts. It also manufactures engines and components.

Yenakiyevo Metal Plant assigned uaA credit rating

It is reported that an independent rating agency in Ukraine upgraded the long term credit rating of Yenakiyevo Metal Plant from uaBBB to uaA. Yenakiyevo said that the outlook is stable.

In the course of analysis the agency used financial reports of Yenakiyevo Metal Plant for 2006 to 2007 as well as internal information provided by the plant.

Mr Aleksandr Podkorytov CEO of OAO Yenakiyevo Metal Plant said that “Credit Rating’s independent assessment of Yenakiyevo Metal Plant’s borrowing potential is important for our business.”

He said that “The agency isolated key competitive edges of the plant: use of effective converter method in steel production, the lowest energy consumption among domestic steel enterprises, and operation within vertically integrated Metinvest Group. The plant systematically implements the long term modernization program. All these factors enable YeMZ to keep high and stable position among Ukrainian steel enterprises in terms of production volumes."

Onexim not to take part in Udokan copper field tender

Interfax cited Mr Dmitry Razumov GD of Onexim as saying that Mr Mikhail Prokhorov's Onexim Group has decided not to take part in a tender for the giant Udokan copper field in Russia's Chita region.

Dniproenergo raise net sales in H1 by 37.73% YoY

It is reported that Dniproenergo raised net sales in H1 2008 by 37.73% YoY to USD 451.76 million. However the company's costs rose much higher. As result the net profit is USD 3.1 million. This is seven times less than in H1 2007.

Millennium capital analyst said that “We think these results are a result of the ambiguity around the company’s ownership. The current owners are not sure of their ability to hold onto the company.”

(Sourced Millennium capita)

EU approves Outokumpu Oyj buy of SoGePar

Reuters reported that the European Commission approved on Friday the purchase of Italian stainless steel distributor So Ge Par Group by Finland's Outokumpu Oyj.

EU executive in a statement said that "The Commission concluded that there would be no risk of any of the markets concerned being foreclosed.”

Chinese nickel ore imports to further slow in H2 on sluggish demand

It is reported that China's nickel ore imports will slow further in the second half of the year as domestic nickel pig iron producers cut back production.

An industry analyst told Interfax that China imported 8.76 million tonnes of nickel ore in the first six months of this year, up by 26.07% YoY as compared with the same period last year, though the country's imports over the month of June dropped by 41.9% from the previous month to 1.18 million tonne.

Mr Xu Aidong an analyst with Beijing Antaike Information said that "China saw big monthly drops in June imports of nickel from both Indonesia and the Philippines, China's two major overseas nickel ore sources, and sluggish demand from Chinese nickel pig iron producers means that imports are likely to continue falling.”

He predicted that China's nickel ore imports would amount to around 15 million tons this year, dipping 3.60% from last year.

Mr Xu said that "Many of China's nickel pig iron producers have either cut production or halted operations altogether because of low nickel prices, currently at around $20,000 per ton, coupled with tight energy supplies and sluggish demand from stainless steel mills. Companies that use blast furnaces for production were hit hardest, as they cannot afford the increasingly steep coke prices.”

Mr Xu said that domestic stainless steel supply has expanded following a cut in export tax rebates for some stainless steel products in July last year. He added that production cuts and ex works price adjustments by stainless steel mills have failed to boost to consumption, as demand from downstream stainless steel consumers have fallen alongside the slowing economy.

Directory of Stainless Steel Supply Chain in China

China remained the world's number one producer of stainless steel in 2007 accounting for more than one quarter of 27.6 million tonnes of global output. China had overtaken Japan as the world's biggest stainless steel producer in 2006 with 6.6 million tonnes in 2006 up by 21.7% YoY. Japan followed China as the second largest producer in 2007 with an output of 3.7 million tonnes. In 2006, China's per capita stainless steel consumption hit 4.6 kilograms, rising above the world average of 4.3 kilograms.

China produced 7.206 million tonnes of stainless steel in 2007 up by 1.906 million tonnes or 35.96% YoY. Import volume hit 1.698 million tonnes down 32.08% YoY and export volume reached 1.303 million tonnes up by 44.78%. Thus net imports totaled 395,000 tonnes including 204,000 tons of semi products and 115,000 tons of narrow plate and exports of HR sheet reached 328,000 tonnes resulting in self sufficiency rate climbing by 15.6% to 75.6%. However, growth of apparent consumption slowed down. Apparent consumption recorded 6.58 million tonnes in 2007 up 630,000 tonnes or 10.59% YoY but 3.61% lower than that in 2006.

As one of the world's fastest growing economies, China has become the most happening place among world steel market over last few years and thus is in the radar of most of global players associated with stainless steel industry. But due to fragmented nature of industry, a comprehensive list of smaller steel makers is not readily available.

Published in July 2008, “Directory of Stainless Steel Supply Chain in China” is one of the top sources of information available on stainless steel related companies in China. It is one of the most comprehensive and accurate directory of Chinese companies that have ever been published. This powerful report is your connection to the entire Chinese stainless steel industries sector.

This report will be extremely useful to businesses that deal specifically with companies from stainless steel industry, ferroalloys, consumable suppliers, raw material sellers, equipment makers and others. Whether you are a product manager, in charge of marketing, raw material seller, in equipment business or simply interested to remain in touch with the latest developments in the Chinese stainless steel industries, this directory will save you time and effort in finding the information you need.

Why spend hundreds of hours searching for new contacts? Invest in a copy TODAY!

This report covers name and product details of 246 of Chinese stainless related firms in Alphabetical order and product category based. Look at the information you'll get in this directory

• Company name - 246 entries
• Address – 246 entries
• Contact person – 241 entries
• Mobile number – 168 entries
• Phone number - 246 entries
• Fax number - 246 entries
• Email - 246 entries
• Web site - 243 entries
• Category
• Products & Services

Report Summary:
1. Published: July 2008
2. Format PDF File (Delivery by Email on receipt of payment)

Price: USD 800 or equivalent in INR
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You can order your copy at reports@steelguru.com

Universal Stainless Q2 net income reaches USD 5.3 million

Universal Stainless & Alloy Products Inc reported that sales for the second quarter of 2008 were USD 63.5 million as compared with USD 62.1 million reported in the second quarter of 2007. Net income for the second quarter of 2008 was USD 5.3 million as compared with USD 5.9 million in the second quarter of 2007.

The results for the second quarter of 2008 exceeded the Company's forecast of sales in the range of USD 55 million to USD 60 million. Net income for the second quarters of both 2008 and 2007 included net inventory charges before tax of USD 1.5 million and USD 1.0 million respectively, for increased reserves related to declines in nickel prices at the end of each quarter. Net income for the second quarter of 2007 also included the effect of a pre tax charge of USD 800,000.

For the first six months of 2008, sales rose 2% to USD 120.3 million while net income was USD 10.0 million as compared with USD 12.6 million in the same period of 2007.

Mr Dennis Oates president & CEO of Universal Stainless said that "The record sales we achieved in the second quarter led to better than forecasted EPS. Driving our results were higher sales to the power generation market combined with record sales to the petrochemical market and tool steel to service centers. In fact, our sales of tool steel rose 28% from the strong first quarter, mainly due to high demand for heavy equipment to support global infrastructure investments and major metal fabrication markets. While aerospace demand remains strong, our sales to the aerospace market were 6% below the first quarter of 2008 as service centers and their customers moved to the sidelines in anticipation of a further reduction in the cost of nickel. Based on their current inventory levels, we continue to expect service center order entry will begin to pick up in the second half of the year."

Mr Oates continued that "We remained focused on improving customer service levels and our operational efficiency in the second quarter. The relocation of our bar finishing equipment to Dunkirk is underway, the new high temperature annealing equipment in Dunkirk is up and running with increased utilization expected, and the capital improvements to our melt shop are moving forward on schedule. We are also continuing to energize and strengthen our sales effort, which has contributed to the solid increase in our backlog. "

Mr Oates concluded that "We plan to continue our progress in the third quarter as we work towards further accelerating our growth."

Tisco wide 304-2B plates enter high end markets

It is reported that recently, Tisco Marketing Department received a good news from the hot pressure template producer that the super wide and super thick 304-2B plate produced by Tisco have been used to process hot pressure template for many times as all the key technical indictors reached the high standard and the products have been exported to foreign countries.

It indicted that the super wide and thick 304-2B stainless steel plate produced by Tisco has entered into the stainless high end market.

Norilsk Nickel announces reorganization and new appointments

MMC Norilsk Nickel on July 24th 2008 a new organizational structure of the Corporate Centre was approved. The key objective is to simplify the Company’s management system by consolidating structural units that report immediately to the General Director of MMC Norilsk Nickel.

Particularly, a new position of the First Deputy General Director appears in the staff schedule, while the number of Deputy General Directors and the number of subdivisions directly subordinate to the Company’s General Director is reduced from 22 to 15. The scope of competence of the First Deputy General Director will encompass such matters as economics, finances, investment policy, internal control, investor relations, as well as supervision of the overseas assets, ie Norilsk Nickel International. The position of the First Deputy General Director was offered to Mr Alexander Popov, Chairman of the Management Board of AKB Rosbank.

Mr Evgeny Potapov was appointed Deputy General Director, Head of Mining and Metallurgical business unit. His scope of competence will embrace day-to-day performance of the Company’s mining and metallurgical operations, development of exploration projects to ensure the expansion of mineral reserves and resources, and the issues of environment protection and environmental management.

Mr Kirill Parinov was appointed Deputy General Director in charge of corporate, proprietary and legal matters. His scope of competence will cover legal support, organizational development, corporate reorganization and property management.

Mr Viktor Sprogis was appointed Deputy General Director responsible for the sales business unit. Deputy General Director Igor Klochko became Head of Fuel and Energy business unit.

The new organizational structure envisages direct subordination to the General Director on the part of Deputy General Director for Personnel and Social Policy, Deputy General Director for Strategy and Development, as well as the Security Department, the Department of Federal and Regional Programs, Public Relations Department, Administration and General Services Department, Transport and Logistics Directorate, Procurement Directorate, New Mining Projects Directorate. The Company will continue development and promotion of social partnership, will consistently pursue environmental responsibility policy, and remain committed to transparency and openness in its business activities.

The formation of MMC Norilsk Nickel’s executive bodies shall be completed on August 8th 2008 when the Board of Directors will approve the new membership of the Management Board. The nominees to the Management Board include General Director of MMC Norilsk Nickel Sergey Batekhin, First Deputy General Director Alexander Popov, Head of the Company’s Polar Division Viktor Tomenko, Deputy General Director for Economics and Finances Oleg Lobanov, Deputy General Director for Corporate, Proprietary and Legal Issues Kirill Parinov, Head of Mining and Metallurgical Business Unit Evgeny Potapov, Deputy General Director for Sales Business Unit Viktor Sprogis.

Mr Sergey Batekhin General Director of MMC Norilsk Nickel said that “Changes in the organizational structure are in tune with ongoing reorganization of the Company’s management system compliant with the best practices of corporate governance of large international corporations. This is an important preparative step towards creating one of the largest international mining and metallurgical companies on the basis of MMC Norilsk Nickel.”

Nickel drops for 3 day in London as steel mills cut usage

It is reported that nickel fell for a third consecutive day in London, trading at more than a two year low as stainless steel producers reduced usage of the metal.

As per report China's biggest maker of the rust resistant alloy Shanxi Taigang Stainless Steel Co said that it plans to produce more goods with a low nickel content. Outokumpu Oyj also said that distributors postponed purchases because of the nickel price decline and softening demand in construction.

Mr Sudakshina Unnikrishnan a commodity analyst at Barclays Capital in London said that “We haven't seen any positive development in the stainless steel industry. Demand for nickel is weak in China, the US and Europe.''

The contract for delivery in three months fell as much as USD 550 or 2.8% to USD 19,400 a tonne, the lowest intraday price since June 26, 2006.

Chinese ferrochrome export to different countries in H1 2008

It is reported that China ferrochrome export in June 200 8 total 30,281 tonnes while during January to June 2008 reached 220741 tonnes.

The export of ferrochrome to different countries is as under

In tonne

(Sourced from MySteel.net)

Chinese ferromanganese export to different countries in H1 of 2008

China ferromanganese export from different countries in June 2008 totaled 54,104 tonnes and the export from January to June 2008 period totaled 1205,316 tonnes.

In tonnes

(Sourced from MySteel.net)

China to strengthen control on coal price increase

According to National Development and Reform Committee China urged local regulators to tighten controls on coal price increases to help power producers cope with rising fuel costs.

The NDRC said prices for thermal coal at major ports, including Qinhuangdao, Tianjin and Tangshan, could not rise beyond the price cap set on June 19th. It said that Coal producers that continued raising prices and traders who hoarded supply to jack up prices would be punished according to the country's Price Law. Such violators would also face media exposure.

Mr Yu Chunyan Dongguan Securities analyst said that "Coal fired power plants, which supply 78% of the country's electricity, are pressured by soaring coal prices and increasing prices in electricity."

Citic Securities analyst said NDRC raised the retail electricity price by CNY 0.025 per KWH on July 1st. The increase, however, could only cover 15 percent of the losses in coal-fired power plants.

According to the State Electricity Regulatory Commission, the top five power producers had seen their combined profits more than halved in the first half because of higher coal prices.

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