Others

Even low HRC steel import offers fails to yield transactions as rupee wobbles

Pencil ingot prices flares without clue in India

Macroeconomic indicators - Morgan Stanley cuts India growth forecast

India imported 10.3 million tonnes coal in April

BHPB announces TEMO operation update

Fire reported at new BF conveyor belt at RINL VSP

Japanese mills start negotiations for next quarters

Enerjia to continue sueing Erdemir in bankruptcy case.

NLMK appoints Mr Brijesh Garg as VP for procurement

US scrap market may dip further

Anglo American and Codelco agree to talks on Anglo Sur dispute

China Steel to set up new production line in Kaohsiung

Outokumpu facing EU antitrust review of Inoxum deal

Evraz Highveld Steel down by 27pct

WA iron ore royalties dispute settled

Al Ghurair to double HDG capacity by end of 2013

Indian steel price index on May 22

Alcan seeks record high aluminium premium from Japan buyers

Philippine Iron and Steel Institute seeks probe in imports

Attila Resources to acquire 70pct interest in Kodiak hard coking coal mine

Macroeconomic indicators - Rupee hits new low of 55.47 against dollar

Sahaviriya Steel hopes for profit in 2012

Mount Gibson Geraldton Port upgrade complete

Chinese domestic steel rebar prices update on May 22

- 23 May 2012

Rebar
20mm
HRB 400

Change is on 22nd May as compared to 21st May 2012
Change is per tonne
USD:CNY = 6.35

Source - Steel Prices China

(www.steelguru.com)

Chinese domestic HR steel prices update on May 22

- 23 May 2012

HRC
5.75mm
Common

Change is on 22nd May as compared to 21st May 2012
Change is per tonne
USD:CNY = 6.35

To know exact prevailing steel prices in China on daily basis, subscribe to services of SteelHome by sending a mail to admin@steelprices-china.com

Source - Steel Prices China

(www.steelguru.com)

Chinese domestic steel billet price update on May 22

- 23 May 2012

Billets
150*150
Q235

Change is on 22nd May as compared to 21st May 2012
Change is per tonne
USD:CNY = 6.35

To know exact prevailing steel prices in China on daily basis, subscribe to services of SteelHome by sending a mail to admin@steelprices-china.com

Source - Steel Prices China

(www.steelguru.com)

Heibei Steel Xuanhua steel target boron added coiled rebar as new exports hotspot

- 23 May 2012

It is reported that in the first four months of 2012, Hebei Steel Xuanhua Steel aggregately produced 103,940 tonnes of boron-added coiled rebar which are especially welcomed in Japan, South Korea India and other nations in East Asia.

Source: www.steelhome.cn/en
China steel information centre and industry database

(www.steelguru.com)

Baosteel No 3 heat treatment production line daily output hit 600 tonnes

- 23 May 2012

Recently, No.3 heat treatment production line of Baosteel produced more than 600 tonnes of steel products, marking a historical high.

Source: www.steelhome.cn/en
China steel information centre and industry database

(www.steelguru.com)

Changbao Steeltube gained success in precision tube trial production

- 23 May 2012

Jiangsu Changbao Steeltube Co Ltd achieved successful trial production of 22mm*2.6mm precision tube, with dimensional accurancy and surface quality outstripping the product standard.

This project is capable to produce 28mm super long tube and all-sized U-shaped tubes and after being put into operation about 7,000 tonnes U-shaped tubes and 6,000 tonnes precision super long tubes will be produced per year.

Source: www.steelhome.cn/en
China steel information centre and industry database

(www.steelguru.com)

Hebei Steel Chengde Steel successfully rolled Q345BV HR Strip

- 23 May 2012

It is reported that Hebei Steel Chengde Steel successfully rolled Q345BV HR Strip recently, reaching national standards.

Source: www.steelhome.cn/en
China steel information centre and industry database

(www.steelguru.com)

Chinese domestic steel wire rod price update on May 22

- 23 May 2012

WRC
6.5mm
High Speed

Change is on 22nd May as compared to 21st May 2012
Change is per tonne
USD:CNY = 6.35

To know exact prevailing steel prices in China on daily basis, subscribe to services of SteelHome by sending a mail to admin@steelprices-china.com

Source - Steel Prices China

(www.steelguru.com)

Panzhihua Steel export 730,000 tonnes of steel products in Jan to Apr 2012

- 23 May 2012

According to Panzhihua Steel, they have exported 730,975 tonnes of sections, HR and CR steel in the first four months of 2012, finishing 38.4% of its annual target.

Source: www.steelhome.cn/en
China steel information centre and industry database

(www.steelguru.com)

Xingcheng Special Steel Gained X80 Pipeline production permit

- 23 May 2012

A few months ago, Xingcheng Special Steel gained X80 (26.4mm×3850mm) production permit, marking a new stage for this steel mill.

Source: www.steelhome.cn/en
China steel information centre and industry database

(www.steelguru.com)

Chinese domestic steel plate price update on May 22

- 23 May 2012

Plates
20mm
Common

Change is on 22nd May as compared to 21st May 2012
Change is per tonne
USD:CNY = 6.35

To know exact prevailing steel prices in China on daily basis, subscribe to services of SteelHome by sending a mail to admin@steelprices-china.com

Source - Steel Prices China

(www.steelguru.com)

Even low HRC steel import offers fails to yield transactions as rupee wobbles

- 23 May 2012

Fog thickened on the Indian shores as Indian Rupee maintained a wobbly course. With over 11% depreciation since March INR rot doesn’t seem to end with every day setting new lower levels.

Ensuing uncertainty has kept the traders at bay as any offer or bid becomes redundant by day end.

It is learnt that import offers have come down to USD 645 per tonne to USD 650 per tonne CFR Mumbai for August shipment from Chinese and CIS mills as global HRC levels have corrected by USD 40 per tonne over the last 1 month and the end is not in vicinity.

However transactions are sparse owing to rupee instability.

In per tonne
1 USD = INR 55.04
(Source: www.steelprices-india.com)

The startling revelation of import levels being almost at par with domestic levels augurs threat for the Indian mills if the balance tilts either way. Currently domestic and imported HRC are tied at INR 40000 per tonne. However import hassles and the wobbly rupee does give marginal leverage to domestic mills but their lucks seems to be clung on wafer thing margin.

If volatility in steel prices is affecting your business, keep tab on market realities and trends by subscribing to www.steelprices-india.com, which is a comprehensive portal that provides domestic pricing information for benchmark steel products in each category at select location in India on a regular basis 5 days a week and international price levels on a weekly basis.

Products covered
1. Input materials - Iron ore, scrap, sponge iron, pig iron pencil ingot, billets and blooms
2. Long products - Rebar, wire rod, angle, channel and joists
3. Flat products - Narrow plates, wide plates, HR, CR and galvanized
4. Others - Pipes

How to subscribe
1. Register at www.steelprices-india.com and pay on line or ask for invoice
2. Send mail to admin@steelprices-india.com.
3. Call at 0091-124-3007891/2/3

Source - Steel Prices India

(www.steelguru.com)

Pencil ingot prices flares without clue in India

- 23 May 2012

Day 2 of week 21 was yet another windfall for the pencil ingot price spiked. Surprise improvement in prices seems a cry in wilderness and primarily speculative.

If the production cut by furnace owners in Mandi has provided the spark in already smoldering furnaces in South and West where power shortage has always played truant.

However it is a cry in wilderness without any prop from the input material and suction of finished demand. With the economy in doldrums momentum might sputter soon.

Pencil Ingot

Change is on May 22nd as compared to 21st May 2012
In INR per tonne

If volatility in steel prices is affecting your business, keep tab on market realities and trends by subscribing to www.steelprices-india.com, which is a comprehensive portal that provides domestic pricing information for benchmark steel products in each category at select location in India on a regular basis 5 days a week and international price levels on a weekly basis.

Products covered
1. Input materials - Iron ore, scrap, sponge iron, pig iron pencil ingot, billets and blooms
2. Long products - Rebar, wire rod, angle, channel and joists
3. Flat products - Narrow plates, wide plates, HR, CR and galvanized
4. Others - Pipes

How to subscribe
1. Register at www.steelprices-india.com and pay on line or ask for invoice
2. Send mail to admin@steelprices-india.com.
3. Call at 0091-124-3007891/2/3

Source - Steel Prices India

(www.steelguru.com)

Macroeconomic indicators - Morgan Stanley cuts India growth forecast

- 23 May 2012

Morgan Stanley cut India's growth forecast for the current financial year to 6.3 per cent as opposed to an earlier 6.9%.

It also cut the 2013 forecast to 6.8 per cent from an earlier 7.5%.

Morgan Stanley has said that A 'bad' growth mix, that is a combination of high national deficit and an expansionary policy of supporting consumption while private investment slows has reached its limits.

The bank expects the Reserve Bank of India to lower repo rate by an additional 100 bps by March 2013, after a 50 bps cut effected in April.

Economic worries over the past few months like rupee depreciation, high inflation and current account deficit are not helping India, which has been trying to get back on the pre-global crisis growth rates of 8-9 per cent.

The rupee has depreciated by 11 per cent against dollar since March. At the same time, inflation in April rose to 7.23% against 6.89% a month ago.

Source - Economic Times

(www.steelguru.com)

India imported 10.3 million tonnes coal in April

- 23 May 2012

Bloomberg reported that India, the world third largest coal user, imported 11% less of the fuel in April compared with the previous month.

Buyers led by Adani Enterprises Ltd, Bhatia International Ltd, TATA Power Co and Steel Authority of India Ltd received 10.3 million tonnes of steam and coking coal via 22 of the 27 ports listed by Interocean Group a New Delhi based ship broker that provided the information. March imports were 11.6 million tons.

Interocean data show that the country imported 7.8 million tons of steam coal and 2.3 million tons of coking coal. The Mundra port on the western coast operated by the Adani Group received the highest volumes of 1.3 million tons. Gangavaram, Paradip and Krishnapatnam all on the eastern coast received 888,736 tons, 838,867 tons and 619,823 tons respectively.

According to the data shipments came from countries including Indonesia, Australia and South Africa while state owned Steel Authority of India and LMJ Industries bought cargoes from the US. BGH Exim and JSW Group imported from Mozambique at Kandla and Goa.

Source - Bloomberg

(www.steelguru.com)

BHPB announces TEMO operation update

- 23 May 2012

On 23 February 2012, BHP Billiton announced a 90 day suspension of operations at its TEMCO1 manganese alloy facility in Tasmania, Australia, to review the economic viability of continuing operations.

With that review now complete, BHP Billiton is pleased to announce that TEMCO operations will be restarted, with planning for a safe and full restart of the operation to commence immediately. The company’s intention is to have all four furnaces operating by the end of August 2012.

Mr Bryan Quinn BHP Billiton Manganese Australia Asset President said “In February the decision was taken to suspend production at TEMCO due to operating losses. Extensive stakeholder consultation and assessment of all options for TEMCO has been undertaken over the last three months. Thanks to the extensive investigation by TEMCO employees of these options, and the flexibility provided by several stakeholders, significant cost reduction opportunities have been identified, primarily in the areas of workforce efficiency, power supply flexibility, ore blending and freight optimisation. These changes should allow TEMCO to return to a globally competitive position”.

Mr Tom Schutte BHP Billiton Manganese President said “One of the key changes as we restart will be the operational separation of the TEMCO alloying facility from the GEMCO mine, located in the Northern Territory. This separation introduces the ability to blend in other ore sources, which will improve operating performance while also allowing us to consider the strategic fit of the TEMCO operation inside BHP Billiton’s portfolio.”

A reduced organisational structure will be implemented for the restart. This will be achieved through natural attrition, an employment freeze and redeployment within BHP Billiton.

Source - BHP Billiton

(www.steelguru.com)

Fire reported at new BF conveyor belt at RINL VSP

- 23 May 2012

Times of India reported that in yet another fire accident at Rashtriya Ispat Nigam Limited’s Visakhapatnam Steel Plant, a conveyor belt carrying raw material to new blast furnace completely melted in the wee hours of Tuesday.

The accident happened at 4 AM at the sinter plant near the blast furnace III. The 300-metre belt (S-9) which was to convey the raw materials - iron ore, sinter and dolomite - to the blast furnace from sinter plant, caught fire and was burnt to ashes.

As per report, the incident stalled production and caused a property loss of about INR 1 crore.

No causality was reported.

This is the third fire accident in the steel plant this year. Two contract workers, who were cleaning the slag with a proclainer at the slag pit of the blast furnace, were burnt alive in a major fire mishap at the newly commissioned blast furnace III on May 1. In another fire accident that took place in the steel melting shop wing on February 6, huge quantity of hotel metal fell on the transfer car and the track from a 15 meter high ladle.

Source - Times of India

(www.steelguru.com)

Japanese mills start negotiations for next quarters

- 23 May 2012

The Japanese mills' export negotiations on various steel products for Southeast Asia and the remote areas like Middle East and Central and South America are expected to start soon for shipment of next quarter (July to September). Negotiations were made in a gloomy atmosphere and were monotonous for the first quarter of this year (January to March) and this quarter but they are expected to become intense ones by rejecting requirement of price down at long last and being devoted to maintain an upward trend if they are seen just like in a dramatic scene.

Not only Japanese but also other countries' blast furnace mills seem to be in serious straits seen from their financial statements, and are surely driven into a corner and, so to say, in dire straits. Any more price decrease seems to be financially difficult for any mill but if any of the mills accepts price down, a risk that prices collapse like in an avalanche is larking for every items. Oncee prices are decreased, under the severely increasing competition, a case that some mills with no endurance withdraw from the overseas market is thought to happen. For that reason, it is predicted that the Japanese mills' existence is shaken in negotiations of this time, and attention is focused on the results of such negotiations whether each mill will be able to stand firmly and stay at the overseas market.

Usually, next quarter is the less demand season of steel products owing to the seasonal factors like summer holiday, Ramadan, and rainy season. Under decreasing demand, production of China and so on seems not to drop at all. Therefore, the market becomes excess supply, and a buyer's market is foreseen to continue in next quarter as well.

Seeing hot-rolled steel coils, at first, the Russian mills seems to have entered into negotiations, and they are said to have made offers for Asia at USD 680 to 690 CFR for June/July shipment. Against this, bidding prices are said to be USD 650 CFR or so. Strongly price down has been required. The Japanese and Korean mills are stating domestic price increase of hot coils, and naturally, the Japanese mills are also to require price increase of not only hot coils but also other items in the export market. The situation is to stand in direct opposition to a customer.

In the previous case, the Japanese mills had not accepted price down from self-confidence of 'the most advanced technology in the world' and 'supplying supreme quality of steel products'. However, as it has taken a long time since they have lost a pricing power, it is suspicious that they are still holding a pride. It is said that in a recent case, a mill decreased its offer prices before requesting price down by a customer for some items, and there is a rumor that there is lack of grace seeing a quantity oriented attitude. From the technical point of view, there is a case that the Japanese mills are caught up and surpassed by the Korean and Chinese mills depending on items, and are forced to withdraw from the market. For this reason, concerns remain about whether the mills will proceed confidently proceed with their negotiations.

The Japanese mills are expected to proceed with negotiations without regard to offers of other countries' mills. It will be a key whether they will be able to restrain themselves without becoming flustered against requirement of price down. It is because if they accept price down following offers of other countries' mills, they will lose their competitiveness further.

In the plate industry, outdated facilities in Japan and Korea were culled due to over supply. If a reproducible price had been maintained, it is foreseen even for such outdated facilities to have been survived. The Japanese mills own technical capabilities but their facilities has passed for several ten years from starting operation, which is so-called a middle age strength. Such facilities might be said to be outdated if fallen behind by one step in competition.

It is sure that technical capabilities of the Korean and Chinese major mills come close to those of the Japanese mills. Therefore, for the Japanese mills, it will be the time to hold their ground at the edge.

Source - The TEX Report

(www.steelguru.com)

Enerjia to continue sueing Erdemir in bankruptcy case.

- 23 May 2012

Turkish major steel export company Enerjia, had initiated bankruptcy case against Turkey’s Erdemir steel mill on 22.04.2010 for an amount of USD 68.5 million (plus interest and legal fees) claiming that Erdemir failed to fulfill its contractual obligations for a large steel export contract.

Lower level court had dismissed bankruptcy case on 23.06.2011.

High Court of Turkey decided that lower level court decision was not appropriate in dismissing the case and returned back the file allowing Enerjia to continue suing Erdemir with bankruptcy for recovering its losses exceeding 68.5 million plus interest and legal fees.

In April 2010, Enerjia had announced that it has sued Turkey’s largest steel producer Erdemir for default of Erdemir in fulfilling an export contract signed in July 2009 in between Enerjia and Erdemir for the supply of 158,307 tonnes of API 5L X70/X80 quality hot rolled coils. The contracted products that Erdemir failed to supply was for India’s two important Gail pipeline projects namely
1. Bawana Nangal pipeline project
2. Dahej vijaipur pipeline project.

The initial claim amount is about USD 68.5 million plus interest, legal fees, etc. Enerjia initiated the legal process with bankruptcy request of Erdemir on March 25th 2010 in Ankara Turkey to recover the occurred losses.

Source - ENERJIA

(www.steelguru.com)

NLMK appoints Mr Brijesh Garg as VP for procurement

- 23 May 2012

NLMK announces the appointment of Mr Brijesh Garg to the newly created position of Vice-President, Procurement.

This appointment will improve the efficiency and operational flexibility of the Group's management structure.

In his new role, Mr Brijesh Garg will coordinate and oversee procurement processes in the best interests of NLMK Group.

Mr Brijesh Garg has over 12 years of experience in supply chain management and business processes re-engineering for large steel plants: Tata Steel, India, New-Zealand Steel (BlueScope Steel, Australia) and ArcelorMittal, Ukraine. He also has 13 year of experience in industrial engineering (mill logistics, HR planning, incentive system management, including labour efficiency improvement).

Most recently he held the position of Chief Procurement Officer at ArcelorMittal, Ukraine.

Source - NLMK

(www.steelguru.com)

US scrap market may dip further

- 23 May 2012

It’s reported that the US scrap market may dip further in the near future as the scrap prices have been falling in the domestic market and the exports have been sluggish.

It’s said that the scrap prices in East American market have dropped by USD 10 to USD 20 per tonne recently. However, the mainstream scrap prices have still remained stable.

At the same time, the US scrap exports have remained weak recently. It’s known that the Turkish steel mills have tried to bid for lower US scrap prices due to the dropped rebar and billet prices in the country.

In addition, the Asian buyers have also slowed down the purchase of overseas scraps due to sluggish demand.

Industry sources have seen the US scrap prices to decrease further in the near further due to lower steel prices in the domestic market.

Source - YIEH.com

(www.steelguru.com)

Anglo American and Codelco agree to talks on Anglo Sur dispute

- 23 May 2012

BNamericas reported that London based Anglo American and Chilean state copper producer Codelco have agreed to explore the possibility of negotiating an agreement in relation to the former's central Chile assets, known as Anglo American Sur.

Codelco and Anglo said that the parties have also requested the suspension of their legal proceedings in a Santiago civil court until June 22nd 2012. If the negotiations are successful, an agreement will enable the parties to overcome their current legal dispute over 49% stake that Codelco wishes to acquire in AAS.

Codelco filed a lawsuit against Anglo American in January to force the latter to comply with an option contract for the 49% share. The original option was granted to state minerals company Enami when the assets, then known as Disputada de Las Condes, were privatized in 1978 and bought by Exxon which sold Disputada to Anglo in 2002.

Last October, Codelco announced its intention to exercise the option. However one month later Anglo American sold a 24.5% stake in the assets to Japan's Mitsubishi for USD 5.39 billion a proportionately higher value than Codelco would pay under the option terms. The move was interpreted by Codelco as an attempt to block its option.

Source - Business News Americas

(www.steelguru.com)

China Steel to set up new production line in Kaohsiung

- 23 May 2012

CENS reported that China Steel Corp will invest TWD 14.2 billion to set up its third production line of electromagnetic steel sheets in Kaohsiung, southern Taiwan, with the investment plan to be carried out soon, according to the company.

The brand new production line is scheduled to be completed by the end of 2013, with annual output of 150,000 metric tonnes of various electromagnetic steel sheets, and is expected to contribute TWD 4.4 billion to China Steel’s revenue every year when fully operational.

China Steel’s executives indicated that the production line is composed of advanced manufacturing facilities mainly imported from Japan, including a rolling mill, annealing and pickling line and horizontal annealing line.

The executives furthered that the brand new production line will be dedicated to making higher-end electromagnetic steel sheets with thickness of only 0.15mm, far thinner than ordinary 0.35mm thick models on markets, which will be primarily used in electric vehicle motors.

Increasingly focused on production of higher-end steel products to improve operating performance, China Steel is expected to see the output of such products increase steadily to command a 43% share of its overall output this year from 38% achieved last year.

Source - CENS

(www.steelguru.com)

Outokumpu facing EU antitrust review of Inoxum deal

- 23 May 2012

Bloomberg reported that Outokumpu Oyj faces an in depth review by European Union regulators of its bid for ThyssenKrupp AG’s Inoxum stainless steel division in a deal that would create Europe’s largest maker of the alloy.

The European Commission extended until September 26th 2012 its deadline to rule on the acquisition amid competition concerns over a transaction that would leave only three integrated producers of stainless steel flat products in Europe.

The Brussels based EU authority said that a preliminary investigation indicated potential serious competition concerns in various markets for the production and distribution of stainless steel flat products, where the merged entity would have very high market shares.

Outokumpu based in Espoo, Finland agreed to buy Inoxum on January 31st 2012 in a deal valuing the German unit at about EUR 2.7 billion. The Inoxum purchase will bring cost synergies. ThyssenKrupp would retain 29.9% stake in the business receive EUR 1 billion in cash and transfer liabilities of EUR 422 million for Inoxum to Outokumpu.

The EU said that the two companies have significant market shares for slabs, hot rolled and cold rolled stainless steel products.

ThyssenKrupp said that the EU decision was very much expected and a prolonged review is typical in transactions of this scale. As we have said all along, we expect to get an approval by the end of 2012. Nothing has changed in this respect.

Source - Bloomberg

(www.steelguru.com)

Evraz Highveld Steel down by 27pct

- 23 May 2012

Steel producer Evraz Highveld Steel and Vanadium posted a headline loss of 94,8c per share for the quarter ended in March compared to headline earnings per share of 21,2c in the comparable period a year ago.

It also reported an operating loss of ZAR 154 million as a result of lower sales volumes compared to a profit of ZAR 8 million for the corresponding period last year.

The company said "Overall steel sales volumes decreased by 27%, mainly as a result of weaker market demand, some problems experienced regarding the availability of steel plant production equipment, and the timing of some export sales, whereby order sales booked in the first quarter will only be realised in the following quarter."

Problems resulting from the availability of steel plant equipment led to a 10% decrease in output of flat production to 175747 tons. Liquid iron output, however increased by 2% to 196486 tons and the production of long product went up by 6% to 65823 tons mainly due to an improvement in demand during the quarter.

On the outlook for demand, the company said the worsening global economic conditions especially with Spain heading into a recession, and steel imports into SA rising, were posing a challenge for the local steel market. As a result, the company said it would continue with its programmes to drive down fixed costs which included possible retrenchments.

Evraz Highveld produces vanadium slag as a waste product of its steel-making process. A total of 14435 tons was produced compared to 16417 tons for the same period last year.

Export vanadium slag sales increased by 1% to 1872 tons compared to the same period last year. No domestic vanadium slag sales were made as no orders were received.

Source - Business Day

(www.steelguru.com)

WA iron ore royalties dispute settled

- 23 May 2012

It is reported that a multi million dollar Supreme Court stoush between property mogul Stan Perron and the family companies of Ms Gina Rinehart, the late Mr Michael Wright and Ms Angela Bennett over iron ore royalties has been settled out of court.

A week ahead of the date the case was scheduled to go to a trial in the Supreme Court, Mr Perron and his company SP Investments Pty Ltd released a statement today announcing that the parties had agreed to settle the proceedings.

In a Supreme Court writ lodged in 2010, Mr Perron claimed that a 1964 agreement with mining pioneers Lang Hancock and Peter Wright entitled him to a cut of the royalties from Rio Tinto’s Brockman mines.

The statement said “The parties have agreed that Mr Perron or SP Investments is and has always been entitled to a 15% interest in the benefits and entitlements of an agreement between Hancock Prospecting, Wright Prospecting and other parties, including Hamersley Iron Pty Ltd.”

It said “Those benefits and entitlements include the payment of royalties in relation to certain mines in the Pilbara region including the Mt Tom Price mines (which include the Western Turner Syncline mine) and the Brockman mines. The terms of the settlement remain confidential.”

Source - The West

(www.steelguru.com)

Al Ghurair to double HDG capacity by end of 2013

- 23 May 2012

Mr Abu Bucker Husain CEO of United Arab Emirates as saying that the company’ sole producer of cold rolled and galvanized coil, Al Ghurair Iron & Steel plans to commission its new hot dip galvanizing line by the end of 2013 as part of its phase II expansion that will double current HDG capacity.

The firm intends to place an order with a technology supplier by October.

Mr Husain said that once brought on line, the new equipment will raise Al Ghurair’s HDG capacity from 200,000 tonnes to 400,000 tonnes per year bringing it in line with the firm’s current cold rolling and pickling production capability.

Although its CR and pickling lines have a design capacity of 250,000 tonnes per year and 350,000 tonnes per year respectively, the company has been able to achieve much higher output in the past.

Al Ghurair also has a cut to length unit with 75,000 tonne per year capacity and a cold rolled shearing unit with 100,000 tonnes per year capacity at its plant at Musaffah, Abu Dhabi. Hot rolled coil feedstock is sourced from affiliate Nippon Steel which has supplied Al Ghurair with 40% or 40,000 tonnes of its bookings so far this year as well as from Australia and India.

Demand for CR and galvanized coil in the company’s sales markets of the Gulf Cooperation Council and wider Middle East and North Africa region has recently weakened in the run up to the holy Muslim month of Ramadan, which begins in July however, regional demand on a macroeconomic level is positive.

Source - Arab Steel

(www.steelguru.com)

Indian steel price index on May 22

- 23 May 2012

The Indian Long Product Price Index ILPPI surged by 4 points on May 22, 2012, whereas Indian Flat Product price index IFPPI remained stable. The overall Indian Steel Price Index INDSPI inclined by 2 points.

ILPPI - Long Product Price Index
IFPPI - Flat Product Price Index
INDSPI - Indian Steel Price Index

Long Products

PI - Product Index

Flat Products

PI - Product Index

These indices have base of 10,000 as on July 1st 2008

To know more about these indices please visit
http://steelprices-india.com/spi_services/spi.html

You can also get ILPPI, IFPPI and INDSPI as SMS alert on mobile by submitting your details at http://steelprices-india.com/smsalert

To know more details on steel prices subscribe to services of www.steelprices-india.com by registering or send a mail to admin@steelprices-india.com with contact details Kindly note that this is a paid service.

Source - Steel Price India

(www.steelguru.com)

Alcan seeks record high aluminium premium from Japan buyers

- 23 May 2012

Reuters reported that Rio Tinto Alcan has written to Japanese buyers asking them to pay a record premium of USD 200 per tonne for July to September primary aluminium shipments, citing tight supplies.

Two sources directly involved in the talks said compares with average premiums of USD 121 to USD 122 paid over the London Metal Exchange cash price in the current quarter. Buyers pay a premium in addition to the LME cash price to cover freight and insurance and to reflect regional supply and demand.

The demand was made in a letter sent late last week ahead of the official start of negotiations this week. The talks are set to continue for the coming three to four weeks. Supplies are tightening fast after struggling aluminium producers, squeezed by rising power and labour costs and weak prices, shut down smelters and cut back on output earlier this year.

Alcan cited relatively solid demand and the low likelihood of banks releasing aluminium stocks held through financial deals. Such financial deals in which traders buy physical metal and simultaneously sell forward at a profit while striking a warehouse deal to store it cheaply in the interim have recently become more profitable as the difference between nearby and forward prices has widened.

Japanese buyers are resisting such a steep increase in premiums, citing uncertainties over demand in the summer, given a potential decline in run rates at aluminium plants due to power shortages. Japan's output of rolled aluminium products in March rose 3 percent from a year earlier, the first rise in 13 months, on strong demand from auto and tin industries.

Japan is the biggest importer of aluminium due to a lack of smelters, though its consumption of around 2 million tonnes per year accounts for only about 5% of global demand.

Russia's UC RUSAL Plc, the world's biggest aluminium producer, posted this month an 84 % drop in Q1 net profit as prices fell. BHP Billiton, the world's largest miner would consolidate its stainless steel materials and aluminium divisions into a single business unit of larger scale, ready to benefit from future growth in emerging economies.

Source - Reuters

(www.steelguru.com)

Philippine Iron and Steel Institute seeks probe in imports

- 23 May 2012

The umbrella organization of the Philippine’s steel industry asked the Bureau of Customs to clamp down on some 15 importers engaged in alleged technical smuggling of steel products.

In a letter to Customs Chief Mr Ruffy Biazon, the Philippine Iron and Steel Institute sought a probe on the undervaluation of the steel importations by the erring companies, which the group warned is killing the local steel industry.

PISI said that apart from this, they are also stealing revenues from the government by declaring undervalued importations.

The PISI said that based on its analysis for March importations, the alleged violators collectively imported 6,531 metric tonnes of finished steel products at an average declared value of only USD 317 per metric tonnes.

However, for that month, the price of scrap metal ranged from USD 400 to USD 420 per metric tonnes while that of hot rolled coils and billet was above USD 600 per metric tonnes.

Thus, from these figures, it can be easily reviewed that the erring importers declared importations that were way below the prices of scrap metal and raw materials. The 15 companies were identified in PISI’s letter to the BOC.

Source - Manila Bulletin

(www.steelguru.com)

Attila Resources to acquire 70pct interest in Kodiak hard coking coal mine

- 23 May 2012

Attila Resources Limited announced that it has entered in to a binding heads of agreement to acquire a 70% interest in Kodiak Mining Company LLC.

Kodiak operated an underground high-volatile hard coking coal mine known as the Coke No.1 Mine in the Cahaba coal basin in Shelby County, Alabama, USA

HIGHLIGHTS

Option to acquire 70% interest in hard coking coal mining operation in Alabama, USA

Exploration target of 80 million tons to 100 million tons of hard coking coal based on 118 historically drilled coal bed methane wells and diamond core holes on 7770 acre property*

Excellent hard coking coal quality - low ash and sulphur, very high fixed carbon

Operation fully permitted and licenced on private land

Full infrastructure already in place to recommence operations including wash plant and rail infrastructure

Experienced management team as JV partner

JORC compliant resource drilling to commence on exercise of option

Option subject to technical, legal and environmental due diligence by Attila and completion of legal documentation

Source - Attila Resources Limited

(www.steelguru.com)

Macroeconomic indicators - Rupee hits new low of 55.47 against dollar

- 23 May 2012

Continuing its free fall for the fifth day in a row, rupee set a new low of 55.47 before ending at 55.39 against the dollar on relentless demand for the American currency from importers, especially oil refiners, even as foreign fund flows remained muted.

At the Interbank Foreign Exchange market, the domestic unit opened sharply higher at 54.60 per dollar from its last close of 55.03 on initial surge in stocks.

But soon dollar demand overshadowed the rupee sentiment even as other Asian currencies rose for a second day despite rating agency Fitch downgrading Japan’s sovereign rating by one notch to A+ with a negative outlook.

Strong dollar demand from importers pulled rupee down to a low of 55.47. The domestic currency, which has lost over 11 per cent since March this year, today finally closed at 55.39, showing a fall of 0.65 per cent or 36 paise.

Forex dealers said for the second day in a row, there was no RBI role today despite rupee touching new lows. They said capital inflows, the major driver behind rupee’s appreciation, were absent in view of the global worries.

Data shows FIIs sold stocks worth INR 283 crore today.

Mr Moses Harding, Head of ALCO and Economic & Market Research IndusInd Bank said that “While there was genuine demand for dollars from importers, supply is not able to match the demand due to low capital flows.”

Mr TS Srinivasan GM (Treasury) of Indian Overseas Bank said that “Rupee also depreciated due to unwinding of positions today. Also, yesterday’s announcement by RBI has short-term negative impact.”

Finance Minister Mr Pranab Mukherjee in New Delhi said that “The government is taking a series of steps. However, managing rupee is market-related.... There is a lot of volatility.

He said that “As and when RBI will consider necessary they will intervene. It depends on the market forces and market forces are uncertain.”

Source - Hindu

(www.steelguru.com)

Sahaviriya Steel hopes for profit in 2012

- 23 May 2012

Thailand's Sahaviriya Steel Industries Pcl is hoping to be back in profit in 2012 despite an expected first-half loss as the start up of its British operations will boost output and secure supplies of raw materials.

President Win Viriyaprapaikit told Reuters that SSI, Southeast Asia's largest fully integrated steel sheet producer, is already considering plans to boost capacity at the British slab plant, which it aims to run at full capacity in the fourth quarter.

Mr Win said that "Many analysts say we will make a loss this year, but I think there's a chance we'll make a profit. We've reached the bottom and we are looking for an 'upcycle' from now on.”

He added that "In the second quarter, we should continue to make a loss, but much smaller than in the first quarter. We are likely to make a profit in the third quarter."

Source - Reuters

(www.steelguru.com)

Mount Gibson Geraldton Port upgrade complete

- 23 May 2012

Mount Gibson Iron Limited announced that the upgrade of Company’s port and rail facilities at Geraldton Port is complete and commissioning has commenced.

The upgrade will effectively double the export capacity of Mount Gibson’s Geraldton port facilities to approximately 6 million tonnes per annum.

The upgrade integrates a new high volume rail unloader with both the Company’s new Berth 5 Storage Facility, which has a maximum ore storage capacity of 240,000 tonnes, and with the Company’s existing 120,000 tonnes Berth 4 Storage Facility at the port. The capacity of the new unloader is approximately double that of the unloader it replaces.

Mr Jim Beyer CEO of Mount Gibson said that completing the upgrade of Mount Gibson’s Geraldton export facilities was an important milestone that would enable the Company to consolidate and build on its position as one of Australia’s leading independent iron ore exporters.

Mr Beyer said “The commissioning of our upgraded facilities at Geraldton will help transform the performance of our Mid West operations, as well as further strengthen Mount Gibson’s strategic position in the long term development of the Mid West iron ore industry. These new facilities will enable us to rapidly ramp up shipments from our Extension Hill and Tallering Peak
mines, and provide a platform for long term growth in the Mid West region.”

Mount Gibson expects commissioning and ramp up to be complete by the end of the current quarter.

Source - Mount Gibson Iron Limited

(www.steelguru.com)