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Indian steel market pauses on March 17

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Major copper market developments in February

- 18 Mar 2010

Below are some of the significant recent developments in production and prices that may continue to influence the direction of the market in 2010;

Production

February 2 - Global annual copper mine output capacity will grow by around 4.3% per year between 2009 and 2013 to 23.1 million tonnes in 2013. Mine capacity in 2013, including solvent extraction electro winning will be around 3.6 million tonnes or 19% higher than in 2009. The organization expects annual world smelter capacity to rise by an average 2.6% per year to reach 20.2 million tonnes in 2013 up 2.0 million tonnes from 2009. Electrolytic refinery capacity growth is expected to average 3.1% per year, exceeding predicted smelter capacity growth. About one half of the forecast increase in world refinery capacity is expected to come from electrolytic refineries in China.

February 2 - Southern Copper estimated its 2010 copper production at 500,000 tonnes, slightly above the 485,376 tonnes it mined last year.

February 2 - Anvil Mining plans to start producing 40,000 tonnes of copper at its Kinsevere mine in the Democratic Republic of Congo next year before increasing output to 60,000 tonnes of copper in 2012.

February 2 - Chilean environmental authorities approved USD 750 million projects that allow the 460,000 tonne per year Collahuasi copper mine to increase by 20% its mineral processing capacity. A Collahuasi spokeswoman in Chile declined to say when the project would start, how long construction would take or how much it would increase the mine's annual copper production.

February 1 - Zambia's largest mineworkers' union had agreed on wage increases with some of the country's top mining firms, averting possible strikes by workers that would have dented output.

Prices

Copper prices ended February at USD 7,226 per tonne up from USD 6,738.25 per month earlier. Prices weakened early in the month on widespread worries about the fiscal health of some euro zone countries. By February 5, 3 months prices had fallen to USD 6,225.

A brighter economic outlook boosted prices, however and by February 19th 2010 they had risen to USD 7,450. They turned lower again after China returned from a week long New Year holiday in a downbeat mood and further monetary tightening there weighed on sentiment. But the downtrend was swiftly halted by a massive earthquake in top copper producer Chile. Uncertainty about supplies helped push 3 months to a high of USD 7,634 per tonne but prices eased as fears receded.

A surprise rise in Chinese February copper imports helped prices for a time on Mar 10th 2010, but production and inflation data from China has stoked investor concerns of further monetary tightening in the world's top consumer. In January, the twice yearly Reuters base metals price poll put the median average for the LME cash copper price at USD 7,077 per tonne in 2010.

(Sourced from Reuters)

Vinto expects tin production to reach 12000 tonnes in 2010 - Bolivia

- 18 Mar 2010

BNamericas reported that Bolivian state owned tin producer Vinto expects production of 12,000 tonnes this year.

An official from the mining and metallurgy ministry said that "In 2009 Vinto saw record production of 11,800 tonnes and the goal is to increase this amount.”

The official also said that the company has approved an investment budget of around USD 150 million that will be used to repair smelting furnaces. The company is also in the middle of constructing the infrastructure to house an Ausmelt furnace, which will be fired up in 2011 and increase production capacity by 90% to 38,000 tonne per year.

In January the country's normalization and quality institute certified Vinto under the NB 1101003:2006 regulation, which certifies the metallic tin it produces as 99.95% pure.

(Sourced from Business News Agency)

Vedanta hits snag in efforts to mine east India hills

- 18 Mar 2010

DJ reported that in a confrontation that has drawn comparisons with recent Hollywood hit film Avatar, a local tribe stands in the way of Vedanta Resources PLC's efforts of mining bauxite buried in Niyamgiri Hills of the eastern Indian state of Orissa.

But unlike Avatar where a mining company exploits a mineral on the fictional planet Pandora threatening the existence of the locals Vedanta has tried to win local support to access Niyamgiri's 75 million tonnes of bauxite reserves through a number of pledges for help.

It has sought and received permission from the state government and hopes to receive federal government permission for the project by year's end. With the state government, it has set aside USD 4.5 million to develop the Niyamgiri Hills and surrounding areas where the mining will take place, to offer employment training and to build health and education facilities for the local Dongria Kondh tribe. Once mining starts, the company will contribute 5% of the pre tax profit from mining to this fund on a continued basis.

The site is important to London Stock Exchange listed Vedanta, which needs the bauxite to operate its nearby Lanjigarh alumina refinery -- the key to its hopes of vaulting into the ranks of the world's top five aluminum producers from 12th place currently. But the hills are also home to the 8,000 members of the Dongria Kondh tribe, one of India's most reclusive and traditional. Many of them oppose a bauxite mine cropping up near their homes because they say it could dry up to 36 streams and two rivers that criss cross the hills, while the noise, dust and pollution could kill off mango, pineapple, orange and other fruit plantations, a key source of food for the local people.

They've been supported by Amnesty International, Action Aid and Survival International among others, who said that the tribe's unique language, culture and customs are not expected to survive if they leave Niyamgiri Hills. The spiritual and cultural beliefs of this community are closely tied to the hills, which they worship as Niyam Raja or King of Order.

Mr Bratindi Jena an activist with UK based Action Aid, who works in the region said that "Quit Niyamgiri, that's the only demand of tribals. They don't want the company to give those jobs, housing or any other consideration."

In a setback for Vedanta, a federal government panel said in a recent report that it found evidence the company had violated guidelines on construction at the site and that the letter and spirit of the law governing rights of tribes on forest lands had not been implemented. The findings could further delay or even block final clearance for the project, which Vedanta has been awaiting since December 2008. Vedanta denied any wrongdoing and said that it remained confident it would get the green light for mining. It has already received an in principal approval by the federal government.

The company has raised USD 2.5 billion to fund bauxite mining in Niyamgiri and expansion of its 1 million tonnes per year alumina refinery to 5 million tonne facility over the next 3 to 4 years. Currently, the Lanjigarh refinery is running on losses, as bauxite carted from faraway mines across India has led to ballooning costs.

The question of how to balance the interests of companies seeking to expand in sensitive areas and the local populations who fear disruption to their way of life has become an acute issue of national importance in India. The country is so densely populated there are few areas where populations won't be affected by major projects. The majority of the country is poor, rural and unskilled, frequently viewing promises of new jobs and development with suspicion, especially since past projects have often failed to deliver on those pledges. And India's economy, one of the world's fastest growing major economies in the past few years, needs to dramatically increase its heavy industrial capacity if it is to reach the government's goal of 10% annual gross domestic product growth.

Corporate behemoths, such as ArcelorMittal, Posco, TATA Motors and the Anil Dhirubhai Ambani Group, all have faced serious disruption and opposition against acquiring land for projects they say will deliver better livelihoods for locals.

Mr Mukesh Kumar head of the Lanjigarh refinery said that "The people of the area are with us. These activists don't have popular support."

Mr Ashok Dalwai Orissa's principal secretary for mining said that the project will have some impact on the hill's environment. But the state government will use part of funds Vedanta has committed to spend to develop the area for conservation. The activists need to understand that ecological concerns go hand in hand with economic benefits. We can't have one without the other.

(Sourced from Dowjones.com)

Zambia plans to spend 70pct of the USD 1 billion credit facility

- 18 Mar 2010

Zambia plans to spend 70% of the USD 1 billion credit facility it secured from China on infrastructure development, chiefly on roads to accelerate economic development.

Mr Felix Mutati commerce trade and industry minister of Zambia said that government was committed to spending more than half of USD 1 billion it borrowed from China in loans to repair and build roads with the remainder going into developing other economic zones.

The USD 1 billion loan was contracted on concessional terms during the February 24th to March 4th 2010 visit of the Far East nation by Zambian president Mr Rupiah Banda on a state to state invitation by Chinese leader Mr Hu Jintao.

The money was part of the USD 10 billion China had committed to lend to Africa over the next three years under the auspices of the Forum on China Africa Cooperation summit held in Beijing in 2006. FOCAC was operationalised last year and China targets that African countries should be able to borrow the whole sum in the next three years.

Mr Mutati said that Zambia had expedited to respond to the Chinese gesture because the money was demand driven and any delays would have risked the country being scooped by other countries. The money would help the country deal with main infrastructural bottlenecks and at the same time help expedite the development of the Lusaka sub zone which is expected to be commissioned after the rain season.

He said that the USD 300 million of that money will allow us to deal with the Lusaka sub zone near the airport. The remaining USD 700 million will be for infrastructural facilities such as construction of houses, roads, stadiums and hydropower stations. Zambia could not delay accessing the USD 10 billion loan facility for fear that other African countries were going to access it at the expense of Zambia, whose president Mr Banda was the first to be invited by China this year.

Mr Mutati said that Zambia becomes the first country to access money from China under FOCAC framework, described as competitive framework. He said that the process was very competitive and so we needed to move as quickly as possible because if we had delayed even before the end of the three years, the entire USD 10 billion would have been consumed.

International Monetary Fund said that while China supported Zambia’s initiative to secure resources from China cautioned the country to ensure the resources benefitted all including its people.

Mr Dominique Strauss KhanMD of IMF said that while IMF supports Zambia and other African countries in accessing such resources from China, such efforts should be evaluated and not done at the expense of traditional donors.

(Filed by Mr Kapembwa Sinkamba SteelGuru Correspondent Zambia)

CBH committed to making Rasp Mine reality

- 18 Mar 2010

ABC reported that CBH Resources is focused on getting the Rasp Mine in Broken Hill approved by the end of the year.

Mr Stephen Dennis MD of CBH said that it is looking at building its own processing plant at a cost of USD 65 million which will take about 15 months to build.

He said that it is looking to be operating in early 2011, with up to 165 people to be employed. Rasp has been spoken about for a long time, I think it's time now for the talking to stop and we'll be getting on and making sure Rasp becomes a reality.

(Sourced from www.abc.net.au)

Gulf Aluminium Council launched at MEED 2010

- 18 Mar 2010

2 years ago, in 2008, the primary aluminium producers in the Gulf region announced the formation of an organization known as the Gulf Aluminium Council that would represent, promote and protect the interests of the aluminium industry within the region. Since then, much work has been done to establish the various committees of the GAC and build the foundations for progress towards the association's goals.

This development work has culminated in the establishment of official GAC headquarters in Dubai, UAE and the formal launch of the GAC to the media today.

The Board of the GAC comprises the CEO of the 6 founding member companies, 5 of which have established smelters in the region, namely: Aluminium Bahrain, Dubai Aluminium Company, Emirates Aluminium, Qatar Aluminium and Sohar Aluminium in Oman. The 6th member is Saudi Mining Company which has announced plans to develop a fully integrated complex in Saudi Arabia. Collectively, the operational smelters at Alba, DUBAL and Sohar produced more than 2 million tonnes of primary aluminium in 2009 equating to 5.6% of the global market.

Following the successful start up EMAL and Qatalum, both of which produced their first cast metal in December last year, it is expected that the total production by GAC members will exceed 3 million tonnes in 2010. Ultimately, the region's production volumes could be doubled to 6 million tonnes per annum in the future, the exact timing being dependent the impact of market influences on the planned expansions of production capacity at the newcomer smelters and the commissioning date of Ma'aden.

Already, the Gulf region has the acknowledged potential to become a major producer in the global aluminium industry. This potential is already being realized through the above mentioned growth in share of annual production, with the additional capacity coming on stream being well placed to meet increased demand for the metal worldwide. Moreover, by being equipped with new generation technologies and adhering to the most stringent environmental protection standards, the smelters in the Gulf region are considered to be among the most energy-efficient and environment-friendly smelters in the world.

The rapid infrastructural development taking place in the GCC countries is also expected to raise the level of aluminium product usage in the region to new heights, a factor that has spawned much discussion on the development of the downstream aluminium sector within the GAC member countries.

According to Mr Abdulla J M Kalban board elected chairman of GAC, the council's main objectives will be to support the successful growth of the primary aluminium industry in the GCC by enhancing the working environment within the industry through the adoption of internationally accepted and benchmarked safer work practices; reinforcing the regional industry players' commitment to protecting the environment and safeguarding the health and well being of communities; and developing a talent pool for the aluminium industry in the Gulf. Marketing and pricing aluminium fall outside the council's scope.

Mr Kalban said that most importantly, the council provides a forum to develop strategies for our common issues and concerns and to share best practice so as to improve the efficiency of the industry, thereby contributing to its sustainable development. Through the council, the members will continually explore opportunities for synergy between our operations such as logistics and transportation that will further improve our international competitiveness. The continued expansion of the aluminium industry in the region will also contribute to the development of National human resources, resulting in accelerated socio-economic development.

He said that naturally, the GAC will also serve as a coordinated voice for the aluminium industry in the Gulf Acting as a representative body for its member base the council will work closely with relevant local and international associations such as the International Aluminium Institute, European Aluminium Association, Aluminium Federation and others with similar concerns. The GAC will complement the efforts of these industry bodies and, in doing so, will play an important role in furthering the achievement of the council's own objectives.

Aluminum Association partners with the community college of Rhode Island

- 18 Mar 2010

The Aluminum Association’s Cans for Causes Program is excited to assist fundraising efforts for the Outdoor Adventure Club of the Community College of Rhode Island. The Club is conducting a recycling awareness program, which will begin on March 29th 2010 and conclude on April 2nd 2010.

Mr Jody Robinson organizer and founder of OAC said that the goal is to show the faculty and students the benefits of recycling. The group’s goal is to donate money to an area elementary school for educational items. As local school budgets get smaller and smaller, there is less that can be offered to the students who happen to be the ones in most need.

Chile copper export revenues up in February

- 18 Mar 2010

Reuters reported that Chile's copper exports totaled USD 2.74 billion in February compared with USD 1.43 billion in the same month the previous year.

The central bank said that the value of Chile's copper exports totaled USD 3.37 billion in January.

(Sourced from Reuters)

DUBAL to keep full capacity operation in 2010

- 18 Mar 2010

Japan Metal Bulletin reported that United Arab Emirates major aluminium smelter, Dubai Aluminium recorded 1 million tonnes of annual sales in 2009 for the first time in the history. The firm plans to keep full capacity operation in 2010 with same level of sales volume as 2009. The firm and the group try to develop growing Asian market with the advantage of cost competitiveness and the quality.

(Sourced from www.japanmetalbulletin.com)

China overheating fears grow and spurring tightening talk

- 18 Mar 2010

Economic Times reported that Chinese consumer inflation spurted to 16 month high in February and a raft of economic data displayed broad based strength, providing fresh arguments for policy tightening sooner rather than later.

The pace of credit growth halved in February, as expected but some economists said that the central bank would probably not wait long before increasing banks' required reserves for a third time this year and perhaps even raising interest rates.

Goldman Sachs economists Mr Yu Song and Mr Helen Qiao said that given the pace of real activity growth, which is well above potential level and an inflation rate which is already at around 3%, we believe it is vital for the government to take more decisive measures to tighten the economy to prevent overheating.

Consumer price inflation quickened to 2.7% in the year to February from 1.5% in the year to January, handily beating forecasts of 2.3%.The government wants to limit inflation for the whole year to 3%.

Ms Tao Wang with UBS in Beijing was one of several economists who said that the jump in February largely reflected a low base of comparison from a year ago, when the economy was slumping, as well as the impact of last month's Lunar New Year holiday.

She said that it will, though, give the market an expectation of a more imminent rate hike. Our forecast is that a rate hike should happen relatively soon, if not this month then probably early in the Q2.

Asian stocks fell nearly 0.5% as investors priced in a tough policy response, while the main Shanghai stock index surrendered an early gain of 0.72% to end the morning with a loss of 0.64%. But comments by Chinese officials suggested that the markets might be getting ahead of themselves.

Mr Sheng Laiyun spokesman for the National Bureau of Statistics said that inflation would remain mild and controllable and blamed February's rise on holiday spending and bad weather, which pushed up the price of food.

(Sourced from Economic Times)

Major lead market developments in February

- 18 Mar 2010

Reuters reported that stocks of lead will continue to rise now that the seasonally strong period for lead demand in the northern hemisphere has almost passed and prices of the metal may fall to reflect this.

Mr Angus MacMillan independent consultant said that the worst of the winter is behind us, stocks are rising and I expect them to continue to do so in the short to medium term. He expected prices to test USD 2,150 to USD 2,100 near term with USD 1,900 a possible target after that.

Another analyst expressed concern that the cold winter had not led to declines in inventories in LME warehouses and also expected them to continue to accumulate in the coming months.

Mr Max Layton analyst of Macquarie meanwhile, was encouraged by the fact that lead stocks had not risen as much as some metals in the downturn. He said that the China story has a long way to run.

Below are some of the more significant recent developments in production and prices that may continue to influence the direction of the market in 2010.

Production

February 25 - Ivernia Inc has expects its restarted Magellan lead mine in Australia to be cash flow positive from May and reach full production levels by the end of the Q3. The Western Australian mine currently has about seven weeks of stockpiled ore available for processing through the plant and mining operations scheduled to start again in March. Shipments of concentrate stockpiles at the mine, which has been in care and maintenance for almost three years, were nearing completion. The company said that it expects to produce about 60,000 tonnes of contained lead in concentrates in 2010 and expects that to ramp up to 85,000 tonnes per year from 2011 onwards.

February 19 - An Australian environment minister said after excessive lead levels were recorded by an air monitoring site that Xstrata may be forced to scale back production or shut down some of its Mount Isa operations. Queensland state's environment minister said that Xstrata Mount Isa Mines had been given until February 22 to explain why one of its air sampling stations found levels of lead exceeded regulatory limits

February 18 - Xstrata said that union workers at the Xstrata Brunswick lead zinc mine in Canada have voted in favor of a 3 year extension of a collective bargaining deal that will surpass the expected closure of the mine. The current agreement, which was set to expire in February 2011, will enable the firm to determine with certainty how much ore there is left to mine and what it will cost to extract it. This will also enable Xstrata to establish a more precise date for the closure.

February 17 - Teck Resources Limited may be forced to curtail operations at Alaska's Red Dog mine after environmental groups appealed against a permit issued by the US Environmental Protection Agency. Teck said that until the EPA issues the notice, it will not know whether and to what extent, access to Aqqaluk the next deposit to be mined at Red Dog will be affected. Red Dog's main reserves are expected to be depleted in 2011 at which point Aqqaluk should already be up and running. If permit delays extend beyond May, the transition plan will be affected and production at Red Dog will likely be curtailed in October.

February 17 - The global lead market was in surplus by 77,000 tonnes in 2009, the International Lead and Zinc Study Group's latest monthly bulletin showed. World refined lead demand was 8.827 million tonnes compared with 8.653 million in the same period last year. The preliminary data showed world refined lead output was 8.756 million tonnes, up from 8.649 million a year earlier.

Prices

Lead prices ended February at USD 2,189.25 per tonne up from 2,029 a month earlier. Prices weakened early on widespread worries about the fiscal health of some euro zone countries. By February 8, 3 months lead prices had fallen to USD 1,911, their lowest since last August.

A brighter economic outlook helped the market recover and by February 22 they were up to USD 2,368 per tonne. But prices failed to hold these gains after China returned from a week long Lunar New Year holiday in a downbeat mood and further monetary tightening there weighed on sentiment. But the market has since firmed under benchmark copper's influence.

(Sourced from Reuters)

Papuan radicals behind Freeport attacks - Report

- 18 Mar 2010

Reuters reported that Separatists in Indonesia's politically sensitive Papua province were behind deadly attacks in 2009 on workers near a mine run by a unit of Freeport McMoRan Copper & Gold Inc.

A secessionist movement has smouldered for decades in Papua in the far east of the Indonesian archipelago. In recent months, unidentified gunmen launched a series of attacks on vehicles traveling to Freeport's Grasberg copper and gold mine near Timika, wounding more than 20 people and killing 2.

The attacks have not disrupted production at the mine which accounts for nearly 40% of Freeport's total copper reserves and boasts the world's largest gold reserves.

The International Crisis Group report said that the culprits were likely to be elements of the Free Papua Movement who may have believed that attacks would lead to the mine's closure.

The report, titled Radicalization and Dialogue in Papua, said that some elements of OPM and the National Committee for West Papua were becoming increasingly militant.

The report said that they decided there was no longer any hope of achieving their main objective a referendum on independence through peaceful means and led some to advocate violence and in some cases directly participate in violent acts.

The ICG report recommended broadening talks between Jakarta and Papuan leaders to address grievances related to political, historical as well as economic issues.

Mr Sidney Jones senior adviser to Crisis Group's Asia program said that "A dialogue, if carefully prepared, offers the possibility of addressing longstanding grievances without calling Indonesian sovereignty into question."

(Sourced from Reuters)

Chinese refined copper output up in first 2 months

- 18 Mar 2010

According to figures released by the National Bureau of Statistics, China produced 702,000 tonnes of refined copper in the first 2 months of 2010 up 16.2% from the previous year.

(Sourced from Interfax China)

Uranium major Niger urged to review contracts

- 18 Mar 2010

Reuters quoted civil rights groups as saying that the new junta ruling in Niger should review and possibly renegotiate dozens of resource exploitation contracts.

The West African state has a longstanding partnership with French nuclear group Areva as well as more recent ones with Canadian, Chinese, South Korean and other groups.

The ROTAB group a collective of anti corruption pressure groups said in a statement that given the opacity surrounding the granting of mining and oil permits in recent years, we urge the immediate creation of a commission of inquiry and any necessary steps, notably the renegotiation of contracts.

Mr Mamadou Tandja president of Niger was deposed in a February 18 coup after he forced through constitutional changes to extend his 5 year term due to have expired in December. Despite its resource riches, Niger remains one of the world's poorest and least developed countries.

The coup leaders have set up a transitional government of technocrats and military officials and have promised to stage elections in which they would take no part. No date has been set for the polls and the junta has given no clear sign of whether it plans to review investments before then.

In the past 5 years Mr Tandja had issued around 130 exploration and exploitation permits for uranium, oil and other resources. A 2007 to 2009 rebellion in the north meant only around 10% of the permits have so far been activated.

(Sourced from Reuters)

Ukrainian billet and pig iron prices to Italy hitting the roof

- 18 Mar 2010

It is reported that between last Friday and Monday March 15th, price of billets from Ukrainian suppliers has taken more than USD 20 per tonne, jumping from a sale price of USD 550 per tonne CFR FO one main Italian port to USD 570 per tonne.

Considering freight component of USD 30 per tonne to USD 35 per tonne for orders of 5,000 tonnes each, the selling price FOB ST Black Sea seems to have reached at least USD 530 per tonne.

It seems that market is still bullish and therefore that price could further go up, also due to a relative scarcity of available quantities and prospected productions.

At the same time also steel making pig iron has signed a dramatic price increase at levels above USD 500 per tonne CFR FO, with target of USD 550 per tonne said to be soon reached.

To keep tab on steel prices in Europe, subscribe to services of www.steelprices-europe.com by registering or sending a mail to admin@steelprices-europe.com with full contact details. Please note that this is a paid service with subscription charges of EUR 500 for 12 months.

(Sourced from www.steelprices-europe.com)

Indian steel market pauses on March 17

- 18 Mar 2010

After 16 days of frenzy, which started on Holi, the upward movement in the Indian steel market paused for the first time in last 16 days. The prices movement on March 17th 2010 was subdued, especially for long products.

The Indian buyers and users of steel would be relived IF this trend continues for next few days.

But the frenzied buying of steel both by users and traders, in order to secure there requirements at lower prices and attempt to make huge profits respectively, may continue to fuel the market. Indications of huge price hike in April by Indian steel majors would also continue to prop up the sentiments.

As per unconfirmed reports, most of the flat product producers have undertaken mid month price increase of INR 500 per tonne to INR 1000 per tonne and are likely to go for major increase on April opening, citing cost pressures.

Since the beginning of March, when Indian steel majors announced their pricing for the month of March, the market prices have surged by more than 10%.During this period Indian Long Product Price Index ILPPI went up by 768 points or 11% to 7537 whereas Indian Flat Product Price Index IFPPI surged by 661 points or 9% to 8234. The overall Indian Steel Price Index INDSPI went up by 717 points or 10% to 7869.

This recent surge in market prices have brought up the price levels closer to the PEAK of July-September 2008 with gap narrowing to just about 20%

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(Sourced from www.steelprices-india.com)

BaoSteel keep steel prices unchanged for April

- 18 Mar 2010

BaoSteel announced their prices for some of the products for April this noon. And the prices of pickling products, HR, galvanized products, electrical steel, etc were surprisingly kept unchanged.

Steel futures and over-the-counter electronic market responded quickly. Just after ten minutes of BaoSteel’s announcement, the contract prices showed a sharply down trend. The spot market also reacted afterwards, for example HRC prices in Shanghai dropt from CNY 4200 per tonne to CNY 4160 per tonne at 15:00, and HRC prices in Tianjin decreased by CNY 40 per tonne to CNY 50 per tonne in one day.

Back to the Chinese New Year, HRC was CNY 3750 per tonne. And the unexpected hike of iron ore price is seen as the initial driving force to this round of prices hiking. Comparing to the highest now, HRC price has already rose by CNY 470 per tonne, 12.5% YoY.

Because of the rumors of sharp rise in iron ore price, most predict that Chinese large steel mills will hike prices by CNY 200 per tonne to CNY 300 per tonne. Thus the steel prices started a sharply and strong pulled up process from mid-March. The steel futures and over-the-counter electronic market also added the fuel.

Although BaoSteel’s prices unchanged announcement extinguishes the rising flames, an expert said as a positive factor to the prices hiking, the prices of the three major steel mills have been speculated ahead. So the impact of steel price adjustment has been digested in advance. Once the adjustments become clear, a pullback after the sharp hike is a normal phenomenon. Thus market participants do not have to panic too much.

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(Sourced from www. steelprices-china.com)

Hyundai Heavy may reduce SBQ plate imports from China

- 18 Mar 2010

Bloomberg reported that the world’s biggest buyer of steel plates South Korean ship builder Hyundai Heavy Industries Co may pare purchases from China for the first time in five years as it builds fewer vessels and considers getting supplies from a new Korean mill.

Hyundai Heavy Industries may also buy more Korean steel plates this year as Hyundai Steel Co’s new furnaces and expansion by POSCO and Dongkuk Steel Mill Co help boost domestic production capacity by about 37%.

Mr Kang Chang June COO said in a March 16 interview in Ulsan that “There’s no reason for us to buy more from overseas. It’s not like Chinese steel plates are cheaper than those from Korea and Japan.”

In addition, Korean yards’ overall use of plates may decline following a drop in ship orders amid the global recession. Hyundai Heavy and affiliates Hyundai Samho Heavy Industries Co and Hyundai Mipo Dockyard Co used more than 3 million tonnes of steel plate last year, less than the 4 million tonnes projected, as ship orders fell.

Hyundai Heavy has increased use of Chinese steel plates since 2006 as South Korean steelmakers were unable to meet demand from record ship orders. The company also agreed to buy 20% of Qinguangdao Shouqin Metal Materials Co. the same year to ensure a steady supply.

(Sourced from Bloomberg)

ArcelorMittal shifts steel project from Khunti Gumla to Bokaro

- 18 Mar 2010

ET reported that ArcelorMittal has finally called it quits at Khunti Gumla in Jharkhand where it had originally decided to set up a 12 million tonne per annum Greenfield steel project at an estimated cost of INR 50,000 crore under a MoU signed way backing 2005, followed by the site selection a year later.

On Wednesday, ArcelorMittal formally sent a communication to the government announcing the relocation of its project from the Khunti Gumla area to Bokaro.

As per report “The land selection ran into rough weather as tribals in the area refused to part with land. The company had come up against a wall of protests, so much so that its representatives couldn’t even hold a single meeting with villagers as tribals simply refused to parley.”

The impasse had forced the company to scout for other areas and it fortunately found some at Bokaro. Negotiations are still on, but apparently some 1000 acres have been sourced from about 200 villagers who have consented to sell their land. A meeting to this effect was held at Petarwar last month.

The report cited Ms Aradhana Patnaik T Jharkhand industries director,, confirming to ET that the company has indeed sent the communication to the state government. She said “We have received the letter regarding shifting of the project. Now the government will extend all support to the company to set up its plant at the new site.”

Ms Patnaik said the company has also requested the water resources department for 45 million cubic meters of water from the Tenughat dam to cater to the requirements of the proposed plant which will be of 3 million tonnes initially.

The company also plans to start purchasing the land soon after it gets clearance from the water resources department. In the meantime, according to a company official, the process of negotiations with the villagers will continue.

(Sourced from ET)

SABIC sees 9pct growth in steel demand in Saudi Arab

- 18 Mar 2010

Saudi Arabian Basic Industries said that demand for steel in top oil exporter Saudi Arabia is expected to rise this year by 8% with consumption nearing 6.4 million tonnes.

SABIC, which controls the kingdom’s biggest steel producer Hadeed, said on its website that total production capacity at local plants run at full tilt is about 7.3 million tonnes.

SABIC is moving ahead with plans to raise annual capacity of long steel products to 4 million tonnes by mid 2012, from 3.2 million tonnes currently.

(Sourced from Reuters)

Brazilian investments in mining to total USD 29 billion - BNDES

- 18 Mar 2010

According to a study carried out by the economic research area of federal development bank BNDES, Brazil's mining sector is expected to receive BRR 52 billion (USD 29.4 billion) of investments in the 2010-13 period down by 2.7% BRR 53 billion received in 2005-08.

Iron ore mining is expected to receive BRR 30 billion in the period, while investments are forecast to total BRR 4 billion in aluminum and BRR 2 billion in nickel.

Growth in Chinese demand has driven investments in the Brazilian mining industry. In 2009, the increase in Chinese imports offset the slump in demand in the rest of the world, as China accounted for 70% of global iron ore foreign trade last year.

The decline in the investment amount is a result of the slower demand growth outlook worldwide, following projects that are already being implemented globally.

BNDES projects that investments in the industrial sectors researched oil and gas, mining, steelmaking, petrochemical, paper and pulp, automotive and electronics will total BRR 499 billion in 2010-13 up 60.2% as compared to 2005-08.

(Sourced from BNamericas)

Global manganese explorers on the upward trend

- 18 Mar 2010

It stands to reason that if tear away demand for iron ore and coking coal has returned, the same can be said for the third key raw material in steelmaking manganese.

For every tonne of steel produced some 1600 kilograms of iron ore and 600 kilograms of coking coal are required. Manganese gets used towards the end of the steelmaking process and depending on a whole range of factors, there is no getting away from need to use somewhere between 7 and 9 kilograms of the stuff.

But the big players in the seaborne trade of manganese producers BHP Billiton leads the pack don't get to charge what they like as China, the world's biggest steel producer by a factor of five, is also a big producer of manganese.

The good news for western world producers is that much of China's manganese production comes from Ma and Pa sized operations which produce low quality stuff. Safety has been a real issue, with many of the operations becoming just Ma operations. Beijing has also been cracking down on their environmental performance or more correctly, their lack of performance. The net impact of all that is that China's domestic production is on the skids, a situation reflected in the 27% surge in Chinese imports of manganese in the 2009 financial year.

With the rebound in steel production around the globe and the decline in Chinese manganese production, manganese prices are on the march. Prices have about doubled from the lows seen during the global financial crisis and are now sitting north of USD 6 a dry metric tonne unit, up from an average for the 2009 financial year of USD 4.92 a dry metric tonne unit.

Whether it gets back to more than USD 15 a dry metric tonne unit like it did for part of calendar 2008 remains to be seen. What is known is that there are few pure manganese plays around. Woodie Woodie manganese producer Consolidated Minerals got gobbled up in a USD 1.3 billion takeover by Ukrainian billionaire Mr Gennadiy Bogolyubov a few years back.

(Sourced from www.theage.com.au)

SAIL to start process on partner selection for SEZ in TN

- 18 Mar 2010

BL reported that Indian steel giant Steel Authority of India Limited is set to start this week the process to select a partner for its exclusive SEZ in Tamil Nadu amid global and domestic firms evincing interest in the joint venture project.

Among the global firms, South Korean giant POSCO’s subsidiary POSCO E&C is said to be in the race for setting up a unit in the Steel Authority of India Ltd SEZ. However, this could not be confirmed.

A Steel Authority of India Ltd official said that “On March 19th 2010, SAIL will start evaluating the Expressions of Interests it is presently receiving from reputed, competent developers for setting up a steel sector Special Economic Zone near its Salem plant in Tamil Nadu.”

The official added that “The SEZ project is proposed to be implemented as a joint venture, in which SAIL will hold 26% of equity with the remaining held by the JV partner selected from eligible bidders who have experience in development and management of major infrastructure projects.”

The official further added that “The JV partner would be responsible for design, financing, construction, marketing, operations and maintenance of the SEZ.”

The government had in January 2008 cleared the steel maker’s proposal to set up a SEZ in Salem, Tamil Nadu, where it operates a stainless steel plant.

(Sourced from Business Line)

Rio workers face trial in China next week

- 18 Mar 2010

Four Rio Tinto Group employees will stand trial in Shanghai on March 22, almost nine months after being arrested on suspicion of bribery and stealing state secrets. Australian Mr Stern Hu will be tried with his colleagues by the Shanghai No 1 Intermediate People’s Court.

The parts of the trial relating to the charges of receiving bribes will be open and Australian consular officials will attend, the foreign affairs department said. Australia has asked for a reconsideration of the decision to keep those sessions dealing with infringement of commercial secrets closed.

Rio vide a release said “Rio Tinto notes that the trial to hear formal charges against the four Shanghai employees detained since 5 July 2009 will be held at the Shanghai Number One Intermediate Court from 22 March 2010.”

The release said “The charges relate to receiving bribes and stealing commercial secrets. Rio Tinto understands that the sessions on receiving bribes will be held in open court and the sessions on stealing commercial secrets in closed court.”

Rio Tinto reiterates its hope for a transparent and expeditious process for its employees.

Sentences for infringing trade secrets and commercial bribery can vary from a few months to several years.

Turkish steel pipe exports increase in February MoM

- 18 Mar 2010

According to the statistics released by the Istanbul Mineral and Metals Exporters' Association, in February this year Turkey's total steel pipe exports amounted to 126,998 tonnes decreasing by 0.56% YoY and up 22.24% MoM. Meanwhile, the revenue generated by these exports totaled USD 114.38 million down 15.99% compared to the same month of the previous year and up 23.25% over January.

In February, the average export price of Turkish steel pipes amounted to USD 900 per tonne up USD 7.41 per tonne or 0.83% from January and indicating a decrease of USD 165 per tonne or 15.52% compared to February 2009.

Turkey's top ten steel pipe export destinations in February 2010:

In tonnes

On the other hand, in the first 2 months of 2010, Turkey's steel pipe exports fell 8.45% reaching 229,750 tonnes while the revenue of these exports totaled USD 204.78 million down 20.64% both compared to the corresponding period of 2009.

(Sourced from Steel Orbis)

Chinese yuan policy depressing global economic growth - Mr Krugman

- 18 Mar 2010

Nobel Prize winning economist Mr Paul Krugman said global economic growth would be about 1.5 percentage points higher if China stopped restraining the value of its currency and running trade surpluses.

Mr Krugman at an Economic Policy Institute event in Washington said China’s currency policy has a “depressing effect” on economic growth in the US, Europe and Japan, as measured by gross domestic product.

He said “If China’s currency, the yuan, were not undervalued, it would have a significant impact on the global recovery. If we could get some change in China’s currency policy, it would help the world.’

Mr Krugman said the world economy wouldn’t be hurt, and could benefit, if China were to sell off a large portion of its dollar denominated assets. He said that if China were to sell all of its US investments, it would help the economy by acting as a form of quantitative easing and fighting a liquidity trap that has recently been affecting the US economy.

He said “We should not be afraid of what the Chinese might do if we pressure them to stop this currency manipulation.”

Mr Krugman said the US may need to get more aggressive in its negotiations with China, perhaps by treating the exchange rate issue as a countervailing duty or other export subsidy. He said “Without a credible threat, we’re not going to get anywhere. The chance that we would trigger a trade war is very small and it’s hard to see any alternative.”

The US has refrained from calling China a currency manipulator, while also criticizing its lack of flexibility in foreign exchange policy. The Chinese central bank has kept the yuan at about 6.8 per dollar since July 2008, as part of stimulus efforts to help China weather the global recession.

TMK to supply premium connections to Lukoil Caspian Offshore Development

- 18 Mar 2010

TMK one of the world’s leading producers of steel pipes for the oil and gas industry announces that it will supply Lukoil with TMK FMT premium threaded tubing for its Yuri Korchagin offshore field development in the Caspian Sea.

TMK Premium Service was preferred to other global pipe producers and won the tender conducted by Lukoil for the supply of premium tubular products for the Yuri Korchagin field in the Caspian Sea. Under the terms of the agreement, Lukoil will receive 88.9mm OD TMK FMT seamless tubing pipe of N80 grade. Shipments are scheduled to run throughout June and July 2010.

Mr Alexander Shiryaev CEO of TMK said “We are now seeing the results of TMK’s strategic investment program. Following the commissioning of state of the art production facilities, the company is now well positioned to enter new end markets such as the Caspian offshore market.”

Latest happenings on iron ore sector in India

- 18 Mar 2010

The global iron ore market is hot. Everything good or bad about economic activities is visible here. On the one hand, there is strong recovery of demand with the global economic prospects back on track, statistically so till date, concerns nevertheless remain. On the other, speculators are back with panic driven Chinese steel industry rushing to build stock before they set the table for talks with the iron ore mining industry for the year’s contract.

The spot prices for iron ore fines have shot over USD 145 per tonne on China’s coast. This means, the contracts for 2010 will be at levels at least 40% higher than in 2009. The Indian government’s action to impose an export tax on fines and raise the same on lumps will help the iron ore majors to stand firm in talks when it comes to the Chinese. Last year’ the Chinese mills made a strategic blunder not signing the annual contract. They won’t repeat that this time around.

The future of the global iron ore industry depends on China. Many believe the steel industry’s growth in China will slow down. At this stage, such a statement will be termed speculative only. The Chinese mills, however, may not yield much ground. They will dig more into their own resources, import more from the spot market and thereby reduce their dependence on contracted volumes, if the prices are not favorable. They have also invested heavily overseas on iron ore assets and will bring in substantial quantities from there to meet some critical needs. The iron ore industry knows that pushing the Chinese mills to a tightrope will boomerang in the long term. More the Chinese mills are stressed, more assets will they acquire, which ultimately will reduce the dependence on the global iron ore cartel. China cannot be ignored by the iron ore miners after all they produce nearly half of world’s steel.

A question has always been in the forefront : should the global coal or iron ore contracts be floating types indexed to steel prices, or a market based free float, or of a short duration, say, a month or a quarter? So far, the global majors, tied to annual contracts, have not been able to capitalize on the higher spot prices running through the year on the average. It is not necessary that this will happen every year. Yet, an optimistic mining industry globally is pushing for this. This will effectively bring an end to the annual contracts.

The rise in global ocean freight has a very significant impact on the iron ore prices. A higher freight will effectively reduce the contract levels set on fob basis. Any attempt to push the burden of rising ocean freight on to the buyer will be resisted. And if iron ore shipping volumes drop, the dry bulk rates will also crash! One does not really know who will bear the brunt of this. It depends on the strength of the market: who is weak and who is not on the negotiating table.

India has taken a protectionist stance. The government needs revenue to support the routine development expenditure and also the stimulus measures. This also sends a signal to the local industry that rampant exports cannot be permitted forever when the local industry faces shortage. In addition, it has sent a strong signal that illegal mining has to stop. Many mines are currently under investigation with their mines lying closed. The local mining industry is lobbying hard to get out of the multiple crises.

“India’s Iron Ore: Following the Global Meltdown” is the latest report form SNRS. The report discusses the current iron ore business in India, prospects for the future and unfolds the opportunities to provide strategic guidance to investors and all others related to iron ore business in India.

Some of the areas covered in the report are
Introduction
The supply dynamics of the iron ore market in India
The market dynamics of demand and price
Structure of the iron ore market by size and pattern of lease holding
Iron ore reserves and resources
Magnetite resources
Iron ore production
Private sector growth
Indian iron ore trend for various grades of lumps and fines
Major freehold iron ore mines
Growth prospects in palletizing Industry
Overcapacity in pig DRI
Consumption of iron ore in India and structure
Fore cast of demand for iron ore in India
Future of exports
Costs of mining
Strategic growth opportunities and options

It also covers all the major players in Indian iron ore sector

Report summary
Price: USD 2000 or INR 100000
Delivery Format: PDF Format

How to order:
You can order the report direct through the SteelGuru website by paying USD 2000 in the name of Major & Minor Exims Pvt Ltd by using your Pay Pal account. Or, you can wire the sum through your bank to Major & Minor Exims Pvt Ltd in India. For details, please get in touch with reports@steelguru.com or at 0091124408993

Sumitomo Metal to hike seamless pipe prices by 20pct

- 18 Mar 2010

Japan's third biggest steelmaker Sumitomo Metal Industries Ltd, a maker of seamless pipes, said it was in talks with Japanese customers to raise pipe prices by 20% from April 1.

Sumitomo Metal said the price hike is aimed at offsetting rises in costs of raw materials such as coking coal and iron ore.

According to the company's statement, steel demand has been and is expected to keep increasing in China and in other East Asian markets. Under this environment, the rising trend of raw material prices has been intensified. A surge in prices of major materials such as iron ore and coking coal appears to be inevitable, while auxiliary materials such as ferroalloys are also rising.

Sumitomo said that “Demand for seamless pipes hit bottom in the first half of the fiscal year 2009-10. Export demand for seamless pipes in the energy-related sector is on a recovery track, while domestic demand is also gradually increasing with a recovery seen in the construction machinery and industrial machinery sectors as regards manufacture of export products. Under the circumstances, this pricing revision will enable Sumitomo to ensure stable supply of seamless pipes.”

(Sourced from Reuters)

Indian steel price index remain stable on Mar 17

- 18 Mar 2010

The Indian Long Product Price Index ILPPI went down by 1 point whereas Indian Flat Product Price Index IFPPI surge by 6 points. The overall Indian Steel Price Index INDSPI rise 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

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.

For registration click or copy the link and paste it to your internet explorer address bar

http://steelprices-india.com/spi_services/terms_of_use_for_registration.html

(Sourced from www.steelprices-india.com)

Chinese steel price index up by 54 points

- 18 Mar 2010

The Chinese Long Product Price Index CLPPI went up by 52 points whereas the Chinese Flat Products Index CFPPI up by 56 points. The overall price index CHISPI increased by 54 points.

CLPPI - Chinese Long Product Price Index
CFPPI - Chinese Flat Product Price Index
CHISPI - Chinese Steel Price Index

Long Products

PI- Product Index

Flat Products

PI- Product Index

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

To know exact prevailing steel prices in China on daily basis, subscribe to services of www.steelprices-china.com by registering or sending a mail to admin@steelprices-china.com. Please note that this is a paid service with subscription charges of USD 750 for 12 months.

For registration click or copy the link and paste it to your internet explorer address bar

http://steelprices-china.com/spi_services/terms_of_use_for_registration.html

(Sourced from www. steelprices-china.com)

New Zealand coal imports jump on BlueScope buys

- 18 Mar 2010

New Zealand coal imports climbed to the highest in three years in the fourth quarter as BlueScope Steel Ltd brought in Indonesian supplies to feed its plant during strikes at local mines.

The Ministry of Economic Development in a statement said that imports rose to 244,000 tons in the three months ended December 31st 2009 up by 36% YoY and the highest since the fourth quarter of 2006. Output in the period dropped to its lowest in almost 10 years as workers at Solid Energy New Zealand Ltd. mines went on a five week strike.

BlueScope’s Glenbrook mill south of Auckland is New Zealand’s largest steelmaker, with annual capacity of about 650,000 tons. It buys about 770000 tons of coal annually from Solid Energy’s Rotowaro and Huntly mines under a five year supply deal agreed in November 2008.

Interrupted supplies from those mines forced the mill to buy Indonesian coal and threatened their long-term viability, the government owned miner said during the November strikes.

The Ministry of Economic Development said that shipments from all New Zealand mines dropped to 406,000 tons in the fourth quarter, 10 percent less than a year earlier and the lowest since the first quarter of 2004.

(Sourced from Bloomberg)

Export price for Russian steel to increase further

- 18 Mar 2010

It is reported that export prices for Russian steel will grow in April by 55 to 10%, the quotations last week increased exactly by this amount. The trader increased HR steel price up to USD 640 per tonne to USD 740 per tonne, CR steel was increased to USD 735 FOB to USD 820 FOB Black Sea.

The analysts of Uralsib Capital say last time the prices grew in Feb. by 1-5% only. The main reason of such an increase is rolled steel demand growth and raw materials prices increase. Coking coal will grow in April by 55% comparing with 2009; iron ore will grow by 50% to 80%. The production cost of steel production at non-integrated mills will grow by USD 100 per tonne to USD 150 per tonne.

Steel prices increase in other regions also played its role, add the Uralsib analysts. Such dynamics will become the main catalyst of Russian metallurgical companies’ shares growth. The companies themselves do not give detailed comments. The representatives of Severstal, NLMK, and Mechel refused to comment the situation and the representative of MMK only confirmed that April quotations grew by 10-15%. And there are orders.

The representative of one of them said export prices will be followed by Russian prices, an analyst of the Bank of Moscow notices. Then steel consumers will have to increase the prices. Ms Elena Matveeva Deputy Chairman of GAZ group said such the increase will be significant for automotive manufacturers and it will eliminate some support measures. In 2008 the problems in the sector started from the speculative growth of metals prices.

However, the metallurgists will not be very aggressive. In general the prices growth and the demand improvement will increase Russian steel makers’ income by 30% to 40 % by the end of the year, resulting EBITDA will grow by 100%, and the profitability on this characteristic will increase by 3% to 5% points.

(Sourced from Vedomosti)

Vietnamese steel mills hike prices again in March

- 18 Mar 2010

According to the Viet Nam Steel Association, since early March, domestic steel makers have adjusted the steel price twice, with a total increase of VND 600,000 per tonne.

Hoa Phat Group's steel saw price rise between VND 200,000 v(USD 10.4) and VND 300,000 per tonne (USD 15.7).

Viet Nam-Italia Company's steel price went up by VND 400,000 per tonne and Van Loi steel price increased from VND 500,000 per tonne to VND 600,000 per tone.

Meanwhile, the hike of retail prices for steel ranged between VND 100,000 per tonne and VND300,000 per tonne against the hike of steel prices offered from manufacturers.

(Sourced from Vietnam News)

Harsco bags environmental services contract from BaoSteel

- 18 Mar 2010

Worldwide industrial services and engineered products company Harsco Corporation announced that its Harsco Metals business group has been awarded a new environmental services contract for by product recycling that will expand the Company’s relationship with China’s largest steelmaker, BaoSteel.

The new contract is valued at approximately USD 6 million and is Harsco’s fourth within the Chinese steelmaking sector.

Harsco Metals will deploy a new zero waste by product recycling service at BaoSteel’s Ningbo integrated carbon steelmaking facility in Zhejiang Province, where Harsco already provides scrap management and coolant scrap production services under the terms of an ongoing 12-year contract. Under its expanded relationship with BaoSteel, Harsco will install and operate a specially constructed facility that will recycle by-products from the mill’s steelmaking for re-use in the production of new steel. Harsco’s recycling services are scheduled to begin in July.

In parallel with its expanding role in providing environmental solutions to steelmakers, Harsco Metals has also begun a new research and development relationship with the University of Science and Technology in Beijing, China’s most prestigious technical institute for iron and steelmaking technologies. Harsco Metals and the university will conduct joint research into the physical, metallurgical and mineralogical properties of steelmaking by-products to develop innovative market uses and enhanced economic viability for these materials. Eight steel producing companies in China have been chosen to participate in the initial study.

Mr Galdino Claro CEO of the Harsco Metals and Harsco Minerals business groups said “This latest award reflects our strong focus on developing and implementing knowledge-based services and solutions that improve our customers’ performance and further extend Harsco’s global growth.”

He said “Both the Ningbo BaoSteel contract and our partnership with the University of Science and Technology reflect our ultimate commitment to help our customers achieve a worldwide, zero waste steel manufacturing industry. We are gratified that BaoSteel has recognized Harsco and the value we bring to this honorable objective.”

Mr Dan Attorre Harsco Metals regional president for Asia Pacific added that “We are delighted to engage with BaoSteel, one of the most technologically-advanced steel producers in the world, in providing solutions that directly support the aims of modern, environmentally-responsive steelmaking.”

US steel shipments in January up by 9pct MoM

- 18 Mar 2010

The American Iron and Steel Institute reported that for the month of January 2010, US steel mills shipped 6,579,808 net tons, 9% increase from the 6,034,538 net tons shipped in the previous month, December 2009, and a 43.8% increase from the 4,576,212 net tons shipped in January 2009.

MoM comparison of shipments shows the following changes
1. HDG up by 23%
2. CR up by 14%
3. HR up by 2%

Siemens VAI bags order from CMC Zawiercie SA

- 18 Mar 2010

Siemens VAI Metals Technologies has received an order from CMC Zawiercie SA to equip a new bar mill with the Morgan XpertManager manufacturing execution system.

This is the fourth long product rolling mill at CMC Zawiercie, Poland's second largest steel producer, which will be operated with XpertManager. Linked to the plant's SAP system, the MES system offers system operators an overview of relevant production and process data, controls the production process and facilitates coordination of different parts of a plant. This boosts yield and ensures uniformly high product quality.

The system will enable CMC Zawiercie to analyze operations, manage production and optimize the mill's throughput, coordinating its production with an existing bar mill and rod outlet. XpertManager receives execution orders from the SAP system and provides all necessary information for mill set up, then tracks the product to ensure it moves correctly through the process.

The MES software system consists of various components that collect and process data, analyze that data and present production evaluations that can be used to improve many aspects of the operation in the form of real-time key performance indicators -from identifying equipment problems, optimizing distribution of manpower, developing operator efficiency and increasing product quality. The powerful analytical and reporting tools in XpertManager will also make production data available to a greater number of staff to identify opportunities for the mill's continuous improvement process. By linking to the SAP system, XpertManager allows managers to compare what is planned to what is actually executed in the mill.

Developed by Morgan Construction Company, a Siemens VAI business, together with former mill operators, XpertManager is now the official MES link for CMC Zawiercie.

Updated directory of 755 Indian steel makers

- 18 Mar 2010

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 2010” 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 March 2010, “Indian Steelmakers Directory 2010” 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.

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 Indian 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 directory covers name and details of 755 Indian steelmakers out of total 1000 plus units in India

Price:
Soft Copy: USD 1000 or INR 50,000

Special offer
For orders paid in March 2010, a special price of USD 750 (INR 40,000) is applicable.

Delivery - PDF file by E Mail on the receipt of payment

How to order
Ordering the report is simple. You can order your copy to reports@steelguru.com, which will send you an invoice of the report.

India to outpace China in 15 years - Rio Tinto

- 18 Mar 2010

Anglo-Australian mining giant Rio Tinto has predicted in its annual report released recently that, India would outpace China in GDP growth within 15 years.

Mr Tom Albanese CEO of Rio Tinto said "As China nears the top of the commodity intensity usage curve, India is expected to follow, supporting a further potential wave of strong commodity demand."

The Asian economic powerhouses' demand for Australian resources, according to Albanese, would continue to rise exponentially in the next decade and a half.

The global mining giant is optimistic that China and India would continue to drive the economic growth in the region as their insatiable demand for iron ore, coal and aluminium does not show any sign of abating in the near future.

Irrespective of the long term predictions about India beating China in the demand for the Australian resources, Rio Tinto would continue to focus on China as the most crucial market. The long term strategy of one of world's leading miners, however has India clearly in its sights.

The annual report reads that “Higher demand from China and potentially India, as a result of high rates of economic growth and urbanization trends in those countries, could contribute further to increases in world production volumes in the long term."

In a significant development, Rio Tinto made the first-ever iron ore sale to India late last year when a 160,000 tonne shipment was sent to Indian steelmaker Essar.

(Sourced from The Times of India)

Tips to enhance your experience - Useful resources

- 18 Mar 2010

A. Glossary
You can select the “Resources” in TOP BAR and click on “Glossary”
Or
Use http://steelguru.com/glossary

This is your readymade source for referral. To improve the convenience of searching, its is divided into following sections
1. Glossary of Coal Industry Terms
2. Glossary of Financial Terms
3. Glossary of Standards to define delivery terms - INCOTERMS
4. Glossary of Mining Terms
5. Glossary of Shipping Terms
6. Glossary of Steel Futures Terms
7. Glossary of Steel Related Terms
8. Glossary of Trade related Terms

B. Conversion tools
You can select the “Tools” in TOP BAR and select following conversion tools
1. Angle
2. Area
3. Data storage
4. Distance
5. Energy
6. Force
7. Fuel consumption
8. Number conversion
9. Power
10. Pressure
11. Temperature
12. Time
13. Velocity
14. Volume
15. Weight

C. Incoterms 2000
You can select the “Resources” in TOP BAR and click on “Incoterms”
Or
Click on http://steelguru.com/incoterms/incoterms_2000_data.html

This chapter covers the following
1. The Purpose
2. Reasons for revision
3. Incoterms 2000
4. Incorporation of Incoterms in sales contract
5. Structure of Incoterms
6. Terminology
7. The Sellers delivery obligation
8. Passing of Risks & costs relating to goods
9. The Terms
10. The Expression No Obligation
11. Variants of Incoterms
12. Customs of a port or a trade
13. Buyers options as to place of shipment
14. Custom Clarence
15. Packing
16. Inspection of Goods
17. Mode of transport & appropriate Incoterm
18. The recommended use
19. The Bill of Lading & electronic commerce
20. Non negotiable documents instead of Bill of Lading
21. The right to give the instruction to the carrier
22. Arbitration

In addition, detailed definitions along with obligations for both seller and buyers for following INCOTERMs are defines in detail
1. EXW
2. FAS
3. FCA
4. FOB
5. CFR
6. CIF
7. CPT
8. CIP
9. DAF
10. DES
11. DEQ
12. DDU
13. DDP
A chart giving summary of all terms is also available

D. Technical info
You can select the “Resources” in TOP BAR and click on “Technical info”
Or
Click on http://steelguru.com/technical/index.html

Information is available on following matters
1. Effects of Elements on Steel
2. Effects of alloying elements
3. Non ferrous Guide
4. Properties and application of metal and non metal alloys
5. Properties of Steel and Steel Alloy
6. Specification
7. Standard Documents formats
8. Steel Guide

Imported coal piling up at Indian ports on rake shortage

- 18 Mar 2010

BL reported that more than 3 million tonnes of imported coal are awaiting evacuation at the east coast ports of Paradip, Visakhapatnam and Gangavaram due to non availability of railway rakes.

This is causing concern to several power houses and steel plants as well as a large number of traders, dependent on coal imports through these ports.

The rake shortage has been caused by slump in arrival of iron ore rakes at the ports, following the Orissa Government's crackdown on illegal mining and pilferage of iron ore in the State's Keonjhar and Nayagarh districts. The rakes which carry iron ore for exports to the ports are generally used for back loading of imported cargo, mostly coal, and evacuation of the cargo out of the ports.

Paradip is holding about 1.5 million tonnes of imported coal and Visakhapatnam port is holding 1.1 million tonne. Gangavaram is holding about 800,000 tonnes, which is likely to increase by 380,000 tonnes or so with the arrival of two vessels within the next few days.

(Sourced from BL)

BDI downward trend continues on March 17

- 18 Mar 2010

It is reported that on March 17th 2010, Baltic Dry Index reached 3427 points, down by 71 points as compared to March 16th 2010.

Capsize

All except INDEX in USD
Change is with respect to numbers on March 16th 2010

Panamax

All except INDEX in USD
Change is with respect to numbers on March 16th 2010

Supramax

All except INDEX in USD
Change is with respect to numbers on March 16th 2010

Spot 4 TC Average = Average Value of the Four Main Shipping Routes
BDI = Weighted Composite Index of BCI/BPI/BHMI

To keep tab on steel prices in India on daily basis, subscribe to services of www.steelprices-india.com by registering or sending a mail to admin@steelprices-india.com. Please note that this is a paid service.

(Sourced from www.steelprices-india.com)

Kumba appeals state decision on mining right

- 18 Mar 2010

South Africa's Kumba Iron Ore, a unit of global miner Anglo American, said on Wednesday it would appeal against the granting of a prospecting right in its Sishen mine to a third party.

Kumba said its unit, Sishen Iron Ore Company, had applied for ArcelorMittal South Africa's stake last May, but authorities granted a prospecting right over the share to a third party instead.

The 21.4% stake in the mining right in Kumba's Sishen mine was previously held by ArcelorMittal South Africa, entitling the steel maker to receive iron ore from Kumba at a discount.

Kumba terminated the preferential deal with the steel maker, claiming that ArcelorMittal South Africa had failed to renew its mining rights in Sishen as per South African mining laws. Kumba said last month it would sell its commodity to the steelmaker at market rates from March 1.

(Sourced from Reuters)

Slowdown signs - 1100 to be laid off at National Steel Car

- 18 Mar 2010

The Hamilton Spectator reported that a Hamilton labor leader is sounding the alarm that a major layoff is looming at National Steel Car.

As per report, Mr Steve Weller, president of United Steelworkers Local Union 7135, met with company officials only to be told there in no business on the horizon.

Mr Weller said if that remains the case, some 1,100 unionized workers will be out of jobs by the end of May. And said some 200 to 300 management staff may face the same fate. He added that "We are all going to be kicking the can."

He said company officials confirmed to him yesterday a recent order for 750 iron ore cars is halfway completed. And there is nothing scheduled after that. But the job loss this time carries an even more ominous threat. Since many of the workers at the Kenilworth Avenue North plant were on strike last year before being laid off at the end of the summer, many might not qualify for unemployment insurance benefits.

Company officials referred all comment to human resources manager Mr Hal Bruckner, who was unavailable for comment yesterday.

Mr Weller repeated his call yesterday for the federal government to step in. He said the Conservative government could keep the company in business by ordering new rail cars for the Ontario Wheat Board. He added that "The company is trying to get orders but there is nothing on the books."

(Sourced from www.thespec.com)

Credit Suisse sees soaring iron ore OTC volumes

- 18 Mar 2010

According to Credit Suisse, volumes on the global over-the-counter iron ore paper market could rise rapidly to hit between 250 million tonnes to 300 million tonnes within two years.

Lack of flexibility in benchmark pricing and the struggle to settle on a price between iron ore miners and their biggest customer, Chinese steelmakers has prompted consumers to increasingly look at alternative tools.

Credit Suisse and Deutsche Bank were among the first to launch cash based iron ore swaps which have grown increasingly popular over the past year as the decades old traditional benchmark system came to the brink of collapse.

Mr Kamal Naqvi global head of commodity investor sales at Credit Suisse said "We are now seeing quite a large array of particularly physical players getting involved which is extremely good for the health of the market."

Mr Naqvi said the volume on the swaps, which are settled against published indexes against spot physical iron ore delivered in China, is set to rise to 60 million tonnes to 70 million tonnes by the end of this year, from 30 million tonnes to 40 million tonnes at present.

He said that "We're seeing the other large miners are looking at it very carefully. But where we are seeing growth continually is from the smaller steel players, who never got a seat at the negotiating table. But by the end of next year, we could be well over 100 million to 150 million and possibly even pushing up to more meaningful numbers of 250 million tonnes to 300 million tonnes on a two year horizon."

(Sourced from http://link.reuters.com)

Rays of recover - ArcelorMittal rebounds in H2 2010

- 18 Mar 2010

ArcelorMittal rebounded from the difficult market conditions early in the year to post consecutive profitable quarters in the second half. It reported net income of USD 1.1 billion during the fourth quarter, an improvement from the USD 903 million in the third quarter and a dramatic turnaround from the USD 2.6 billion lost during the fourth quarter of 2008.

Its performance in the final two quarters allowed the world's largest steelmaker to report a profitable year at USD 118 million in income. ArcelorMittal reported sales of USD 18.6 billion during the fourth quarter, a slight improvement from the USD 16.1 billion during the previous quarter, but behind the USD 22.1 billion during the final three months of the previous year.

Fourth quarter shipments of 71.1 million tonnes represented a 10% improvement from the previous quarter. Additionally, capacity utilization improved to 70% during the quarter.

Mr LN Mittal chairman & CEO of ArcelorMittal said that "In a very difficult environment, ArcelorMittal has succeeded in reducing its cost base substantially and significantly strengthening the balance sheet. We therefore start the year in a good position to benefit from the progressive, albeit slow, recovery that is under way. Although 2010 will continue to be challenging, we are now increasing capital expenditure to take advantage of selected growth opportunities as demand improves."

(Sourced from www.metalcenternews.com)

South African export coal retreats on weaker European demand

- 18 Mar 2010

Bloomberg reported that prices for coal shipped from South Africa’s Richards Bay fell for the first time in 4 weeks on weakening European demand.

According to IHS McCloskey, export prices declined USD 1.15 or 1.4% to USD 82.95 per tonne in the week to March 12. That’s before transport expenses and above the USD 71.45 per tonne it costs for coal delivered to Europe. UK power companies’ stockpiles are 4.9% below record levels in September.

Mr Emmanuel Fages an analyst in Paris at Orbeo, Societe Generale SA’s carbon trading venture with Rhodia SA said that “This is a clear sign of weakness in thermal coal demand in Europe. Asia has driven the coal market in the first quarter of 2010.”

Mr Fages said that Richards Bay prices will rise 32% on average this year to USD 84.60 per tonne and the delivered price to Europe will gain 26% to USD 87.50. Coal exports from the terminal fell 5% in February. Shipments dropped to 4.94 million tonnes from 5.2 million tonnes a year before. At the February rate, the terminal would ship about 60.5 million tonnes this year.

(Sourced from Bloomberg)

Are you looking for steel scrap buyers in India

- 18 Mar 2010

India, although mostly lagging behind the offered prices for steel scrap, remains a major player among suppliers by importing more than 3 million tonnes annually.

The Indian steel scrap market is quite de fragmented and not much information is available readily on supply chain. There are more than 700 steel makers, who use steel scrap every day and many agents who fix deals or act as a distributor for smaller buyers.

Chaos is added by a large number of internet traders, who dream of quick money and keep sending mails about availability for large quantum of scrap without having any handle on this business wasting time of all.

Therefore to assist the players in the steel scrap supply chain, we have prepared a directory containing the contact details of users and agents in India

The "Indian steel scrap supply chain directory” consists of
Company Name -
Company address -
E mail -
Phone No -
Fax No -
Mobile No -
Web site (if any) -

The directory will definitely provide you with all the information you need to make new contacts and keep track of old ones.

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

Report Summary:
* Total Entries: 859 (755 steelmakers) (104 agents)
* URL: 168
* E Mail: 601
* Phone: 846
* Fax: 709
* Mobile: 229

For details

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Soft Copy: USD 1200 or INR 56,000

Special offer
For orders paid in March 2010, a special price of USD 900 (INR 42,000) is applicable along with a free copy of an earlier directory of Overseas Scrap Suppliers, costing USD 500 thus taking the total saving to USD 800 (INR 37,600).

Delivery - PDF file by E Mail on the receipt of payment

How to order
Ordering the report is simple. You can order your copy to reports@steelguru.com, which will send you an invoice of the report.

Newcastle coal loader sits quietly

- 18 Mar 2010

It is reported that Newcastle coal berths sat eerily quiet recently while 53 ships sat waiting for trains to bring coal to the port.

Loader operator Port Waratah Coal Services said, Whittingham derailment cost the industry 419,000 tonnes of coal movement while track and loader maintenance cost another 151,000 tonnes.

PWCS would not put a dollar figure on the losses but Hunter steaming coal has been bringing USD 100 a tonne, putting the cost at about USD 60 million. Despite the presence of more than 500,000 tonnes of coal at the port Kooragang and Carrington coal terminals, none of the partial cargoes were enough to assemble a full cargo, meaning that all five of the port's coal terminals sat empty.

Operations are expected to return to normal during the week but a weekly report published recently by the Hunter Valley Coal Chain Co-ordinator shows Newcastle coal experts are already 10% behind target for the year.

Mr Jonathan Vandevoort Coordinator spokesman said the derailment and four days of scheduled track maintenance would inevitably add to the shipping queue.

State Government rail investigators said the 30-carriage grain train was on it way to Werris Creek when it derailed.

(Sourced from http://www.theherald.com.au)