Others

TATA Steel announced consolidated financial results for quarter ending December

SHFE steel rebar futures fall as Chinese data cuts policy easing hopes

Nippon Steel sees low prices of steel in 2012

Japanese EAF carbon steel output to remain flat in 2012

Rio Tinto announces underlying earnings of USD15 billion

Iron ore stocks at Chinese ports approaching alarm line

Iranian steel imports collapse under sanctions

ArcelorMittal Kriviy Rih increases production in January

Indian aluminum growth story is just getting unfolded - Mr Roongta

Automation and information technology crucial for Indian steel industry

SULB plans capacity expansion and new rebar mill

Chinese daily crude steel output in late Jan hit 1.482 million tonnes

Lenenergo Grid challenges USD 545k collection for world steel giant

Copper may fall as China inflation may limit easing - LME Preview

Indian steel price index reflects negative trend on February 9

Scrap supply tightens in Northeastern China

Raspadskaya picks banks for Eurobond issue - Source

Japan nonferrous metals manufacturers to diversify Thai flood risk

POSCO Research sees South Korean HR flat steel export hitting record high for 2012

Kumba announce December ended result

Sponge iron prices dip further at Raipur

ArcelorMittal announces Q4 and FY 2011 results for Flat Carbon Europe

North Dakota coal mines score a perfect compliance record

Hyundai Steel to launch HRC capacity expansion project

Japanese major stainless steel makers to post recurring loss in 9M 2011

- 10 Feb 2012

JMB reported that among Japanese 5 major stainless steel makers, only Nisshin Steel and Nippon Yakin Kogyo could gain recurring profits for nine months of April to December 2011, except for the pure re roller, Nippon Kinzoku.

For a full year of fiscal 2011 ending in March 2012, only Nippon Yakin Kogyo would gain profit. All of the 5 makers would be forced to post recurring losses in the second half year when nickel price is volatile. Domestic demand for stainless steel currently levels off. Japanese makers also suffer low export volume and tough price competition with imported stainless steels under historically strong yen trend.

Nippon Yakin Kogyo announced on Monday the firm gained consolidated recurring profit at JPY 1.373 billion for April to December 2011 while the profit lowered by JPY 684 million from the six months of April to September 2011. The firm would post additional JPY 800 million loss for January to March 2012 period.

In the first quarter or April to June 2011 period, all makers other than Nippon Steel & Sumikin Stainless Steel gained recurring profits. Nippon Metal Industry posted quarterly recurring loss for July to September 2011. Nickel market price declined and then the selling price of stainless products lowered. Meanwhile, export profitability worsened due to strong yen trend. Import also increased from South Korea and Taiwan. Domestic price competition became severer especially for SUS304 grade products.

NSSC, Japanese largest stainless steel maker, posted quarterly recurring loss at JPY 1.954 billion for April to June 2011, JPY 4.228 billion for July to September 2011 and JPY 4.385 billion for October to December.

Nisshin Steel forecasts six month recurring loss at JPY 4 billion for its stainless steel business in the last half of fiscal 2011. The firm posted inventory evaluation profit at JPY 500 million in the first half year while inventory evaluation loss would total JPY 5.5 billion in the second half year.

Nippon Yakin Kogyo also forecasts six month recurring loss at JPY 1.5 billion for the second half of fiscal 2011. Nippon Metal Industry forecasts half year recurring loss at about JPY 5 billion.

(Sourced from www.japanmetalbulletin.com)

NSSC hikes nickel series stainless sheet and plate price for Feb

- 10 Feb 2012

Nippon Steel & Sumikin Stainless Steel Corporation announced that the firm increases the sales price of nickel series cold rolled stainless steel sheet and plate by JPY 10,000 per tonne for February 2012 contracts to reflect nickel price upsurge in January 2012.

This is the first price hike for nickel series since May 2011. Nickel price at London Metal Exchange kept uptrend as of February 3rd 2012. Thus additional price hike is expected for March contracts by around JPY 10,000. Meanwhile, NSSC left the sales price of chrome series stainless products unchanged.

The latest price of nickel series products were decided along January 2012 monthly average of LME nickel price at USD 8.99 per pound, higher by USD 0.76 from the previous month, as well as averaged yen exchange rate against US dollar in January 2012, JPY 77.98 per USD 1. Averaged chrome price was 123 US cents per pound.

Mr Mitsuru Sawada, sales manager of NSSC, said that the market trend is slightly changing when dealers' sales volume increased by around 10% in January from the previous month and stainless steel users are gradually increasing their inventories along scrap price upsurge.

Mr Kojiro Kusunoki, plate sales manager of NSSC, explained domestic plate shipment slightly increased in December. Domestic demand was stable for cut stainless plate. Demand is also improving for reconstructions in the disaster areas of the Great East Japan Earthquake.

(Sourced from www.japanmetalbulletin.com)

NSSC wins the Prime Minister's Award

- 10 Feb 2012

The Monodzukuri Nippon Grand Awards are conferred in order to develop and pass on the manufacturing and tradition that has supported Japan's industry and culture as well as the lives of citizens and to inspire further development.

The Ministry of Economy, Trade and Industry, the Ministry of Education, Culture, Sports, Science and Technology, the Ministry of Health, Labor and Welfare and the Ministry of Land, Infrastructure, Transport and Tourism jointly created the awards in August 2005 and an awards ceremony is held once every 2 years.

The awards are conferred across 4 categories and NSSC received the Prime Minister's Award in the Product and Technology Development Category, which in turn is in the Monodzukuri Supporting Industry and Society Category. This field is subdivided into 3 sections: materials, machinery data and living. The award is not just limited to metal products but is included in a broad scope of materials that also encompassed plastics, rubber, concrete, etc. The NSSC entry was judged for its: 1. Revolutionary approach; 2. Technical level; 3. Influence on citizens’ lives and impact on industry. Only one material can be chosen from all the entrants; there is a lot of pride and honor in being the recipient of this award.

NSSC® FW1 and NSSC® FW2 are the world’s first stainless steel products manufactured through the addition of tin. This new technique can reduces rare metals such as Cr and Ni as used in the production of regular steel such as SUS430 and SUS304 by some 20% to 40%. The new approach has delivered a reduction in required raw materials as well as costs.

Furthermore, both new products display excellent anti corrosion performance and are simple to process, making them suitable for the same broad range of applications as regular steel. The new steel is manufactured in Japan and exported to overseas where competition in the generic stainless steel market is ever intensifying, and as such the new steel has been acknowledged to be the shot in the arm for domestic manufacturing.

In the year since commercial production, the total volume of FW Series manufactured has exceeded 10,000 metric tons. In terms of applications, FW Series steel is being used in a wide variety of fields, from washing machine drums, system kitchens, domestic goods such as pots and pans, etc. through to ornamental piping and ironware installed in construction projects outdoors.

The NSSC® FW Series has been created through the technologies of tin addition pioneered in the days of Sumitomo Metals with the highly pure ferrite-related manufacturing technologies developed by Nippon Steel. Working in cooperation with Nippon Steel Yawata Works, NSSC has succeeded in producing the series on a commercial basis, which represents the fusion of joint-technology between Nippon Steel and Sumitomo Metals.

Driven by this Prime Minister's Award, NSSC will be devoted to put all its efforts into developing new products succeeding the FW Series and will keep contributing to society through its technologies and experiences.

ANDRITZ wins stainless steel works order from Ergste Westig

- 10 Feb 2012

It is reported that international technology group ANDRITZ has received an order from Stahlwerk Ergste Westig GmbH, a subsidiary of the Zapp Group, to supply a 20 roll precision rolling mill for a new stainless steel works in Unna in Germany. Start up is scheduled for beginning of 2013.

The rolling mill in 4 column design supplied by ANDRITZ Sundwig is dimensioned to roll extra thin stainless steel strip to a finished thickness of 0.02 to 0.5 mm and a width of up to 750 mm. The rolling speed is 600 meters per minute.

In addition to the mechanical equipment, the scope of supply comprises the complete electrical equipment, including automatic flatness measuring and control system, strip thickness control, the process optimization system, and an integrated surface inspection system.

Stahlwerk Ergste Westig already has several different models of ANDRITZ Sundwig rolling mills operating successfully for strip widths from 380 mm to 450 mm.

(Sourced from www.stainless-steel-ind.com)

Japanese imported ferroalloy market report as of January 31

- 10 Feb 2012

Market outlook of Japanese imported ferroalloys as of January 31st 2012 is as follows:

General view
World crude steel production in 2011 turned out 1,527 million tonnes, of which China's output held 45.5% at 695 million tonnes. With the dominatingly large share, the market of 2012 will revolve again around China. Last year output of crude steel in China continued to decline in October and November, but the decline stopped in December. In addition, the Chinese mills are said to resume buying iron ore in a large volume, giving some stir in the ocean freight market. Recovery is obviously near as the New Year opened.

Ferrosilicon
Market looks half asleep just after the Chinese New Year Holidays. In December cheap selling for cash softened the market without big changes after the opening of 2012. Offer prices before the Holidays were USD 1,400 per tonne CIF for Chinese origin and USD 1,380 per tonne CIF for so called Vietnamese origin.

Silicomanganese
The efforts by the sellers of Indian silicomanganese have been paid off as the cheap offers of below USD 1,000 per tonne CIF totally disappeared, but it is a bit premature to say that USD 1,100 per tonne or more as targeted by the sellers is being acknowledged as prevailing by the market. The highest offer of recent days was USD 1,130 per tonne CIF without takers. Actual deals are done at USD 1,080 to USD 1,100 per tonne CIF. It is of market concern whether the sellers' efforts will be rewarded in the near future or not, as there are many medium and small scale producers especially in India who tend to put priority on quick sales at a little lower price than trying to maintain higher prices. It is true that the market bottomed out at USD 950 to USD 980 per tonne, but some more time seems required before USD 1,100 per tonne or more becomes prevailing.

Charge chrome
Spot price of high carbon ferrochrome in Europe rose to USD 108 to USD 110 per pound DDP early January 2012. As the gap between the spot price and the benchmark narrowed, some market participants took it as a starting line of the road to benchmark raise for the Q2 by USD 10 to USD 15 per pound as sought by ferrochrome producers. Current concern of the market is definitely the price in the Chinese market after the Holidays, as it is now the very influential key factor for the world market of chrome. In Japan spot market has been just quiet. Japan's stainless steel mills in large-scale curtailment since November seem just busy in fulfilling the obligation of taking the tonnages contracted for 2011, having no room to buy spots.

Manganese metal
Upon opening of 2012, LME nickel price started rising to reach USD 20,000 per tonne recently. Nickel's price rise means, generally speaking, 200 series stainless steel products containing manganese become more attractive to consumers, therefore a market participant commented that manganese metal price would hopefully rebound after the Chinese New Year Holidays based on the possibility of increase in demand for the metal. However, things may not be so simple, because the output of crude SUS 200 series in 2011 was 4.75 million tonnes, up by only 1.3% from 2010, while the output of crude SUS 300 series (nickel alloyed) in 2011 grew by 21.2% from 2010. Maybe it will take time to see whether the high nickel price will actually favor manganese metal's demand price, or not so much. The offers just after the Holidays were at USD 3,100 to USD 3,200 per tonne CIF, which is said to be below the profit making line of the producers.

Molybdenum
The prices in the market late last week came to over USD 14 per pound, which was the level seen in the market in August 2011 last time. The market bottomed out in December 2011, since when the price had fluctuated within 13's for 3 to 4 weeks, but it picked up to over USD 14 per pound last week upon a sizable order from a European stainless steel mill. As a result, market sentiment turned a little tight, a well informed source commented.

(Sourced from TEX Report Limited)

TATA Steel announced consolidated financial results for quarter ending December

- 10 Feb 2012

Group Performance Highlights:
1. TATA Steel Group recorded Profit after tax (after minority interest and share of profit of associates) of INR 4,956 crores (USD934 million) during the first nine months of the financial year 2011-12 (9M FY’12) compared to a profit of INR 4,807 crores (USD906 million) in the first nine months of the financial year 2010-11 (9M FY’11). The Group registered a net loss of INR 603 crores (USD 114 million) in Q3 FY’12 compared to a net profit of INR 1,003 crores (USD 189 million) in Q3 FY’11.

2. Group EBITDA in 9M FY’12 was INR 13,242 crores (USD 2.5 billion) compared to INR 12,399 crores (USD 2.34 billion) in 9M FY’11. EBITDA in Q3 FY’12 came in at INR 1,940 crores (USD 366 million) compared to INR 3,374 crores (USD 636 million) recorded in Q3 FY’11.

3. Group consolidated turnover in 9M FY’12 was INR 98,901 crores (USD 18.64 billion), up from the INR 84,929 crores (USD 16.01 billion) recorded in 9M FY’11. The consolidated turnover for Q3 FY’12 was INR 33,103 crores (USD 6.24 billion) compared to the INR 29,089 crores (USD 5.48 billion) in Q3 FY’11.

4. The Group’s steel deliveries in 9M FY’12 rose by 0.8% to 18.01 million tonnes compared to 17.86 million tonnes in 9M FY’11. Steel deliveries in Q3 FY’12 fell slightly to 5.84 million tonnes from 5.9 million tonnes in Q3 FY’11.

5. Net debt at the end of December 2011 was INR 50,528 crores (USD 9.52 billion) compared to INR 46,627 crores (USD 8.79 billion) at the end of March 2011.

6. Turnover in Tata Steel India in 9M FY’12 increased by 16.1% to INR 24,454 crores (USD 4.61 billion) from INR 21,056 crores (USD 3.97 billion) in 9M FY’11. Q3 FY’12 sales of INR 8,382 crores (USD 1.58 billion) were up by 13.3% from the INR 7,397 crores (USD 1.39 billion) of Q3 FY’11 and up 2.1% from the INR 8,212 crores (USD 1.55 billion) of Q2 FY’12.

EBITDA in 9M FY’12 at INR 9,053 crores (USD 1.71 billion) was slightly down by 1.1% from INR 9,158 crores (USD 1.73 billion) in the previous year. Q3 FY’12 EBITDA of `2,604 crores

(USD 491 million) was down by 8% from the INR 2,832 crores (USD 534 million) of Q3 FY’11 and down by 6.8% from the INR 2,793 crores (USD 526 million) of Q2 FY’12. The 9M FY’12 EBITDA margin was nevertheless healthy at 37%.

7. Turnover in Tata Steel Europe in in 9M FY’12 increased by 18.9% to INR 62,230 crores (USD 11.73 billion) from the INR 52,356 crores (USD 9.87 billion) in 9M FY’11. Q3 FY’12 sales of INR 20,535 crores (USD 3.87 billion) were 17.2% up from the INR 17,523 crores (USD 3.3 billion) of Q3 FY’11, but down 3.0% from the `21,160 crores (USD 3.99 billion) of Q2 FY’12.

EBITDA for 9M FY’12 came in at INR 1,631 crores (USD 308 million), down by 37.9% from INR 2,626 crores (USD 495 million) in 9M FY’11. There was an EBITDA loss of INR 781 crores (USD 147 million) in Q3 FY’12 compared to positive EBITDA of INR 392 crores (USD 74 million) in Q3 FY’11 and INR 505 crores (USD 95 million) in Q2 FY’12. The Q3 FY’12 loss was mainly due to mark-to-market provisions on stock.

9. The 2.9 million tonne per annum Brownfield expansion in Jamshedpur is expected to be commissioned in Q4 FY’12.

Mr HM Nerurkar MD of TATA Steel said that “Our Indian operations delivered steady performance during the last quarter, with flat product volumes increasing 3% year on year. Long product volumes dropped marginally due to planned shutdowns, but we increased our market reach, recording our highest ever quarterly retail long products sales. Company wide cost saving measures benefitted margins in an otherwise difficult market. We expect steel demand to improve on expectations of the RBI relaxing monetary policy to aid growth and investment. An improvement in operating performance, coupled with a number of new marketing initiatives, should increase profitability at the South East Asian operations.”

Dr Karl Ulrich Köhler MD & CEO of Tata Steel Europe said that “The December quarter marked the height of the cyclical cost price squeeze. TATA Steel was one of the first steel companies in Europe last year to start adjusting its output and configuration to the slowdown in the recovery. The turnaround program in our Long Products business is well on course for completion by the end of the financial year, as planned. Similar measures have been taken elsewhere in the Company, most recently at some of our tubes operations in the Netherlands and the UK. Through our Step Up & Save initiative we are accelerating cash conservation in expectation of muted but stable demand in our core markets in 2012.”

SHFE steel rebar futures fall as Chinese data cuts policy easing hopes

- 10 Feb 2012

Reuters reported that Shanghai steel futures slipped on Thursday as faster than expected inflation in China doused hopes of further monetary easing any time soon.

The most traded May rebar contract on the Shanghai Futures Exchange dropped by 0.9% to close at CNY 4,297 a tonne, falling for a third time in four sessions.

China's annual inflation rate accelerated to a three month high of 4.5 percent in January, well ahead of market expectations and breaking a five-month trend of easing price pressures as consumers increased spending during the Lunar New Year holiday season.

The latest inflation data gives Beijing limited room to aggressively ease liquidity conditions in the near term, economists said, some of whom had been looking at another cut in Chinese banks' reserve requirement ratio before March.

Tight credit had dented steel demand in China and many in the industry were hoping Beijing would continue slashing banks' reserve requirement after cutting them for the first time in three years in November.

(Sourced from Reuters)

Nippon Steel sees low prices of steel in 2012

- 10 Feb 2012

Bloomberg reported that Japan's biggest steelmaker Nippon Steel Corp expects prices to stay low this year as global producers of steel continue to compete for orders amid slowing demand.

Mr Shinichi Taniguchi EVO said in an interview in Tokyo “The current situation won't change so easily. The yen is also likely to remain high,” putting Japanese mills at a disadvantage compared with their Chinese and South Korean rivals.”

He said “The strong yen is hitting Japanese manufacturers like a body blow. We expect an oversupply of steel in Korea, Japan and China.”

Nippon Steel relies on exports for 40%of its shipments but it had to cut exports by 4% in the first 11 months of 2011.

The yen's strength has eroded profits at Japanese exporters as faltering global growth undermines demand. The yen averaged 77.33 per dollar in the quarter ended December compared with 82.50 a year earlier. It climbed to a post World War II high of 75.35 October 31.

(Sourced from Bloomberg)

Japanese EAF carbon steel output to remain flat in 2012

- 10 Feb 2012

JMB quoted Mr Katsutoshi Kurikawa chairman of Japanese Non Integrated Steel Producers' Association as saying that Japanese carbon steel making electric furnaces' output for 2012 would slightly increase or remain same level as in 2011 when Japanese construction investment would increase for 2012 from 2011.

Mr Kurikawa also the president of Godo Steel emphasized Japanese carbon steel making electric furnaces should avoid overproduction to secure reproducible profit when ferrous scrap cost increase.

Mr Kurikawa said Japanese building construction starts increased by 4% in 2011 from 2010 but the start increased by 15% for reinforced concrete structured building while the start increased by 1% for steel structured building. He said Japanese concrete reinforcing steel bar output was 8.088 million tonnes in 2011 reaching 8 million tonnes for the first time in 5 years.

Mr Kurikawa warned proposed electricity charge hike by Tokyo Electric Power represents 40% hike for carbon steel making electric furnaces when the steel makers operate only in mid night and weekend. He said the electricity hike impacts on Japanese carbon steel and special steel making electric furnaces heavily when the makers consume 4.38 kilowatt per JPY 1,000 of sales and the consumption is 8 times of manufacturers' average. He said the industry tries to appeal the severe impact by the higher electric cost.

(Sourced from www.japanmetalbulletin.com)

Rio Tinto announces underlying earnings of USD15 billion

- 10 Feb 2012

1. Record underlying earnings of USD 15.5 billion, 11% above 2010.

2. Net earnings1 of USD 5.8 billion, 59% below 2010, primarily as a result of an impairment charge of USD 8.9 billion related to the Group's aluminium businesses.

3. Record underlying EBITDA1 of USD 28.5 billion, 10% above 2010.

4. Record cash flows from operations up 16 per cent to USD 27.4 billion.

5. Capital expenditure of USD 12.3 billion in 2011, compared with USD 4.6 billion in 2010. Total capital expenditure for 2012 on approved projects and sustaining capital is expected to be USD 16 billion. Further project approvals, mainly in the Pilbara, are likely to increase this level of investment as the growth program continues.
A. Pilbara iron ore expansion to 283 million tonnes per annum now fully approved and on track to be in operation by end of 2013: second planned phase expansion of Pilbara capacity enhanced to 353 million tonnes per annum and completion brought forward by six months to first half of 2015.
B. Growth options enhanced in Mongolia, Mozambique and South Africa: Rio Tinto moves to majority stake in Ivanhoe, completes Riversdale acquisition providing entry to an emerging major coking coal resource and announces doubling of stake in Richards Bay Minerals.

6. 34% increase to full year dividend to 145 US cents per share, reflecting confidence in long term outlook.

7. USD 7 billion share buy back program on track for completion by end of the first quarter. To date USD 6.2 billion has been completed, representing 103 million Rio Tinto plc shares equivalent to five per cent of the Group's issued share capital.

Iron ore stocks at Chinese ports approaching alarm line

- 10 Feb 2012

Mr Zhang Chunliang scheduler from Dalian Port Ore Terminal Company Limitev said that iron ore piled at docks in Dalian Port can be seen everywhere, most of which are shipped from Brazil and Australia. Although current capacities are approaching the alarm level, more ships are on the way.

Mr Zhang said that mills and traders usually take cargos away soon after unloading. Impacted by gloomy downstream demand since last year, there is an obvious slowdown in taking deliveries. They had loading and unloading of around 2.5 million tonnes in January 2011 but the figure has now fallen to 1.6 million tonnes in this January.

He said that this is not the only case many other ports in China are also facing full yards. Period of storage of some cargos even exceed half a year, versus the normal three months.

Up to February 3rd 2012, iron ore inventory at 36 Chinese ports totaled around 99.15 million tonnes. Most traders say demand for spot port will improve this week but are only cautiously optimistic over the question if prices will step up adding mills are seeing deficit, downstream steel consuming industries are slowing down and large rises will be confined by sizable port inventories.

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

Iranian steel imports collapse under sanctions

- 10 Feb 2012

Reuters reported that steel exports to Iran are grinding to a halt as crippling US led sanctions have left local buyers without access to major currencies.

Iranian buyers cannot obtain dollars or euros, forcing them to offer letters of credit in alternative currencies such as the Indian rupee, Korean won and Russian rubles. Most steel traders, wary of currency risk and taxation issues, are not willing to accept this form of payment.

A steel trader based in Britain said “Iran is the only market in the world that can move billet prices and now trading has basically come to a halt.”

A steel trader at a Swiss metals trading house said “Now you can really feel the effects of the sanctions imposed by the US and Europe. It is very difficult to do any business with Iran at the moment.”

New US and EU financial sanctions imposed since the beginning of this year to punish Tehran over its nuclear program are playing havoc with Iran's ability to buy imports and receive payment for its oil exports.

Thanks to large scale building programs in the last few years, Iran has become one of the top importers of steel billet, a semi-finished long steel product mainly used for construction. The country imported over 3 million tonnes of semi finished steel products in 2010 and almost 2 million of hot rolled coil.

The collapse in Iranian imports is depressing international steel billet prices, which fell by about USD 50 a tonne in a month to USD 560 a tonne fob Russia and Ukraine this week.

(Sourced from Reuters)

ArcelorMittal Kriviy Rih increases production in January

- 10 Feb 2012

ArcelorMittal’s Ukrainian unit said steel production rose by 22.7% in January from the same month a year earlier.

Production jumped to 549,200 tonnes from 447,300 tonnes in January 2010.

(Sourced from Bloomberg)

Indian aluminum growth story is just getting unfolded - Mr Roongta

- 10 Feb 2012

Mr SK Roongta former chairman of Steel Authority of India Limited has a new challenge in hand taking aluminum to new heights for Vedanta Aluminum. As Managing Director of the private sector metals major he is upbeat about aluminum prices going up bringing in better profits.

Q - What made you switch tracks to aluminum?

A - I spent 38 years of my professional life in steel. Meeting the challenges of SAIL's transformation and putting it on a high growth path was an experience to cherish. Aluminum is the metal of the present as well as future. I found it challenging to be able to steer Vedanta's 2.5 million tonne per annum fully integrated aluminum facilities along with power generation capacity of 6,000 MW.

Q - Is Vedanta planning new investments in aluminum?

A - Vedanta's largest Greenfield investment here has been in the aluminum sector. Jharsuguda is being developed as an aluminum and power hub. We are putting up a new smelter of 1.25 million tonne per annum capacity in Jharsuguda and another smelter of 0.325 million tonne per annum at BALCO. Once commissioned both these smelters will produce around 2.5 million tonne per annum of aluminum.

Q - How do you asses the current policy making scenario?

A - There is a general consensus that Indian economy is in need of fresh reforms to sustain the growth momentum. In the metals and power space, and other sectors as well, issues relating to coal availability and regulatory issues pertaining to environment and forest clearances etc remain a big challenge. The state of aluminum industry is a case in point. Aluminum production hinges on backward linkages to bauxite and coal. India is home to one of largest reserves of coal and high-grade bauxite in the world. It can certainly be at the bottom of the cost curve of global producers. The country should realize this potential and can become a global hub for aluminum.

Q - Environmental issues have affected some of your projects. Your views?

A - Economic growth and environment protection must go hand in hand. We accord the highest priority to issues related with environment, social and human rights and endeavor to adopt the world's best practices. Our Lanjigarh alumina refinery is the first zero discharge refinery in the country, with lower energy and water use than the world average. Clearly, international benchmarks are the driving force behind all our endeavors.

Q - What is the status of your power projects?

A - Power plants with combined capacity of 3,615 MW at Jharsuguda are our largest capacity at a single location. At BALCO, we have 810 MW captive power plants that are operational and a further capacity of 1,200 MW is getting ready. The first of 4 x 300 MW power unit would go on stream in Q4 FY 2012 and other units will be commissioned thereafter. At Talwandi in Punjab, construction is on to set up a super critical plant of 1,980 MW capacity which will be fully operational in 2014. This will add a capacity of about 8,000 MW, besides 847 MW in other group companies including 273 MW of wind energy.

Q - What is your outlook for bauxite, a key resource for the aluminum industry?

A - India is home to some of the world's best bauxite deposits in Odisha. As a policy, the country should harness this advantage by encouraging value addition in its vicinity with resultant industrial, economic and all round development of backward areas. This will also reduce the overload on Indian Railways and roads, as it will cut down expensive logistics. We are hopeful that Orissa Mining Corporation will adhere to its commitment and provide us with the required mine, as substantial downstream investments have been undertaken.

Q - What is the scope of growth for aluminum in India?

A - India's aluminum growth story is just getting unfolded with per capita consumption at just 1.3 kilogram compared with 14 kilogram in China. At present, the power sector consumes a major share of aluminum but as the economy grows, consumption in transportation, construction, consumer durables and packaging segments will grow faster. What is important is that the aluminum Vedanta produces has to be further processed into end products. Thus there is potential for a few hundred new entrepreneurs to set up downstream industries. Vedanta doesn't intend to enter this segment but would like to facilitate new entrepreneurs to set up units.

Q - Is the worldwide decline in metal prices affecting your profit margin?

A - Metal prices including aluminum were somewhat depressed in the later half of CY 2011 which did affect profit. There has, however been some recovery in 2012. China remains a major force in the world space and with Chinese economy still growing and demand on the rise in other emerging markets, global demand should grow well.

Q - What are the prospects for aluminum prices?

A - We see better prospects in the coming months. Both China and Europe are bottoming out and are unable to maintain their production levels, given the rising costs and non availability of raw materials. The demand from the infrastructure segment will also see a rise in Asia. By March 2012 we expect London Metal Exchange prices at USD 2,300 to USD 2,400.

(Sourced from www.thehindubusinessline.com)

Automation and information technology crucial for Indian steel industry

- 10 Feb 2012

According to Mr SS Mohanty CEO of Bokaro Steel Plant, increase in demand of steel consumption and taking forward automation and information technology in the steel industry were key segments to watch.

Mr Mohanty said that "AIT has an important role for process control and optimization in order to produce new steel products and achieve quality products.”

Delving on the theme of the conference, 'Process Improvement and Energy Efficiency', Mr Mohanty said AIT was a part and parcel of the steel industry and it could not survive without it because of the AIT’s role in speeding up delivery.

He said that "Without automation, steel making cant’s be viability…per capital steel consumption in India is just 55 kg compared to world average of 206 kg. There is a tremendous scope to increase the requirement.”

Mr A K Ghosh CMD of MECON emphasized on reduction of carbon dioxide and adoption of AIT could reduce it.

CEO of Rourkela Steel Plant, Mr GS Prasad said demand for reliable steel products has taken centre stage and suggested that AIT should be religiously followed, which would help high productivity.

More than 200 delegates, including experts from USA, the UK and Germany, will delve on the subject till February 10.

(Sourced from PTI)

Is your company a technology or equipment supplier to steel industry?
Are you looking to expand your business in India?
Do you want to meet hundreds of prospective global clients in India under one roof?

Or

Are you looking to expand your capacity?
Would you like to improve your product quality?
Do you want to examine various options for backward and forward integration?
Do you want to keep your spending to affordable levels?
Do you want to meet Chinese technology & equipment suppliers?

If answer to any of them is YES, please book a spot to present your technology or learn about options on the relevant topic at Steel Technology Conclave 2012.

SteelGuru in association with SteelGroup and SteelHome (China), is organizing a mega gathering of equipment & technology suppliers from world over and key people from Indian steel makers on February 6th and 7th 2012 at hotel Leela Kempinski, Gurgaon, Delhi NCR.

The main idea is to bring the world class technology companies, second tier equipment suppliers, experts, consultants, contractors etc. together to showcase the latest trends in respective areas as well as their product basket in front of a large number of prospective clients in the steel sector.

http://www.globalbusinessconnect.org/steel_technology_conclave_2012/6

Structure of the Conclave
There would be parallel sessions in 15 broad areas in multiples halls spread over two days time on February 6th and 7th 2012. We are inviting 2 to 3 equipment companies in each session to make 30 minute presentation, including Q&A, to promote their technology and offerings to steel sector at nominal marketing charges.

Areas being covered include

1. Raw material preparation
Beneficiation, Handling & blending, Sintering, Coke ovens, Pelletization

2. Iron & steel making
Blast furnace, BOF, DRI, EAF, Secondary refining, Casting

3. Rolling technology
Hot rolling, Pickling, Plate mill, Electro Cleaning, Cold rolling, Annealing, Skin Pass, Bar & section mills

4. Indigenous technology
Sponge iron, Captive Power Plants, Induction furnaces, Rolling mills

5. Coating technology
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SULB plans capacity expansion and new rebar mill

- 10 Feb 2012

Prospective Bahraini steelmaker United Steel Company plans to increase its melting and direct reduced iron capacity as well as install a rebar mill in the second phase of expansion at its new steelworks in the north eastern region of Al Hidd.

Currently under construction, the works comprises 1.5 million tonnes per year capacity DRI plant, 1 million tonne per year melt shop and 600,000 tonne per year heavy sections mill that will produce medium to large H-beams. SULB expects to begin hot commissioning of the melt shop in September, while the DRI plant should come online in January 2013.

In order to capitalize on burgeoning rebar consumption in neighboring Saudi Arabia and to supply other Gulf Cooperation Council nations, the company intends to install a bar mill at a later stage, a SULB official tells Steel Business Briefing. The rebar mill, which is set to have a minimum capacity of 500,000 tonnes per tonne year would be complemented by a new DRI plant and melt shop. SULB is currently in talks with equipment suppliers and has not yet decided on commissioning dates.

SULB is a 51%:49% JV between Kuwaiti holding company Foulath and Japanese sections producer Yamato Kogyo. In 2011, it acquired Saudi Arabian section mill United Gulf Steel Mill which has 450,000 tonne per year capacity. The Bahraini works is adjacent to Gulf Industrial Investment Co’s 11 million tonne per year iron ore pelletizing plant which is part of Foulath’s parent company Gulf Investment Corporation.

(Sourced from www.arabsteel.info)

Chinese daily crude steel output in late Jan hit 1.482 million tonnes

- 10 Feb 2012

According to China Iron and Steel Association, the daily crude steel production of its members in late January came to 1.4822 million tonnes up 0.5% compared to mid January.

It is expected that China daily crude steel output for the last ten days of January will stand at 167.25 million tonnes. The crude steel production of CISA’s members in January was 1.4838 million tonnes and that for the whole nation was 1.6798 million tonnes.

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

Lenenergo Grid challenges USD 545k collection for world steel giant

- 10 Feb 2012

The Lenenergo grid company has appealed in a federal commercial court the judgment to collect USD 545,000 for the Severstal steel and mining company.

The company has challenged the Thirteenth Commercial Appeals Court's December judgment to revise the previous decision passed by the St. Petersburg and Leningrad Regional Commercial Court.

The court earlier fully satisfied Severstal's lawsuit to recover from Lenenergo RUB 25.36 million (USD 843,000) for failing to connect the company to its grid in a timely manner between December 17th 2009 and February 16th 2010.

The higher court cut the penalty, which cannot exceed 30% of the connection contract amount of RUB 226.44 million (USD 7.5 million) by law. The maximum penalty is RUB 67.93 million (USD 2.25 million).

Severstal is one of the world's leading vertically integrated steel and steel related mining companies, with assets in Russia, North America and Europe.

Lenenergo is one of the largest power network companies in North-Western Russia. Its transmission lines stretch for 35,967 kilometers.

(Sourced from rapsinews.com)

Copper may fall as China inflation may limit easing - LME Preview

- 10 Feb 2012

Bloomberg reported that copper may decline in London after a report showing inflation in China the biggest metals user unexpectedly accelerated in January, limiting room for monetary easing and as talks over a Greek bailout stalled.

Metals News
1. Rio Tinto Group, the world’s third largest mining company, swung to a H2 loss its first in 4 years after taking USD 8.9 billion one time charge on the value of its aluminum business.

2. Refined tin shipments from Indonesia, the world’s largest exporter, plunged 64% in January from a month earlier after bad weather disrupted mining, reducing ore supplies to smelters.

3. Rio Tinto Group had 181 million pounds of so called open copper shipments that will be priced in the first half of this year.

4. BHP Billiton Limited may consider selling about USD 10 billion of aluminum, nickel and coal mines and smelters as it trims its portfolio.

5. OAO GMK Norilsk Nickel is studying acquisitions in Africa.

(Sourced from Bloomberg)

Indian steel price index reflects negative trend on February 9

- 10 Feb 2012

The Indian Long Product Price Index ILPPI remained stable on February 9th 2012, where as Indian Flat Product Price Index IFPPI declined by 1 point. The overall Indian Steel Price Index INDSPI went down by 1 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

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(Sourced from www.steelprices-india.com)

Scrap supply tightens in Northeastern China

- 10 Feb 2012

Scrap supply is tight in Northeastern China in recent days.

Steelmakers’ inventories run low. Currently Lingyuan Steel’s inventory stays at 7,000 tonnes and it has to procure about 1,000 tonnes scrap almost every day to support its daily production.

New Fushun Steel procures scrap at CNY 2980 per tonne. Traders’ stockpiles also stay at a low level as it is hard to re collect scrap. From marketers, scrap price will maintain stable in the short run.

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

Raspadskaya picks banks for Eurobond issue - Source

- 10 Feb 2012

Reuters reported that Russian coking coal miner Raspadskaya has chosen Morgan Stanley, Goldman Sachs and VTB Capital to arrange a planned Eurobond issue.

A source close to the deal told Reuters that "The company needs to refinance an outstanding Eurobond issue worth USD 300 million, which is due in May.”

Raspadskaya is following in the footsteps of Russia's top lender Sberbank and state development bank VEB which reopened Eurobond deals for local borrowers last week, raising USD 2.5 billion in still tough market conditions.

Raspadskaya said on Monday it had completed its offer to buy back up to 10% of its shares, spending around USD 400 million.

(Soured from Reuters)

Japan nonferrous metals manufacturers to diversify Thai flood risk

- 10 Feb 2012

Japanese nonferrous metal industry makers try to diversify the operation after they had damage on their major plants from Thai flood. The firm diversifies the plants of flexible printed circuit and connector.

Furukawa Electric announced that the firm shifts a part of production from damaged subsidiary, Furukawa FITEL (Thailand) to Chinese operation. Fujikura with world No.2 market share in flexible printed circuit had damage on Thai upstream operation. The downstream operation cannot increase the production due to idle of upstream operation. The firm decided to build new plants in Vietnam and in highland area of Thailand to diversify the operation.

The firm also diversifies connector production after the subsidiary, DDK (Thailand) was damaged. Fujikura resumes operation of DDK (Thailand) and expands plants in China and Vietnam. Fujikura plants to production share at 45% in Thailand, 45% in Shanghai and 10% in Vietnam while the share was 70% in Thailand and 30% in Shanghai.

Furukawa Electric idles Furukawa FITEL (Thailand) which makes semiconductor laser and optical parts, and shifts the production to other 6 plants. Furukawa Electric keeps production of optical parts at Dongguan plant for diversification while Furukawa FITEL (Thailand) resumes operation in March.

Fujikura builds water barrier at Ayutthaya plant and shifts the production facility to second floor at plant in Nava Nakorn. Furukawa FITEL (Thailand) also shifts the production facility to second floor.

Furukawa Sky Aluminum announced that the firm shifts flood damaged coil center operation to new flat rolling plant and resumes the operation in early 2014. The coil center stopped operation after the flood.

(Sourced from www.japanmetalbulletin.com)

POSCO Research sees South Korean HR flat steel export hitting record high for 2012

- 10 Feb 2012

POSCO Research Institute expects South Korean hot rolled flat steel demand, output and export will hit the record for 2012. The export is more than import as 2011 when the import will decrease for 2 years in a row. South Korean demand of steel plate would decrease for the first time in 3 years while the output would hit the record.

South Korea would turn into net plate export in second half of 2012. South Koran steel makers have to develop offshore market when the supply keeps higher than the domestic demand for the major flat steel items.

The institute sees South Korean hot rolled flat steel demand increases by 2.2% to 33.6 million tonnes for 2012 from 2011. The production renews record for 3 years in a row while 3.6% of the increase is smaller than the growth in 2011. The export increases by 2.7% while the import decreases by 6.4%. The net export increases by 500,000 tonnes to 1.61 million tonnes.

The institute sees the plate demand for 2012 is 2.01 million tonnes lower than the peak in 2008. The net import decreases to slightly less than 1 million tonnes compared with slightly more than 6 million tonnes in 2008.

The institute sees South Korean flat rolled steel consumption decreases by 0.7% to 30.82 million tonnes for 2012 from 2011. The plate consumption decreases due to slow demand for shipbuilding. The flat rolled steel export increases and the import decreases due to the higher output.

(Sourced from www.japanmetalbulletin.com)

Kumba announce December ended result

- 10 Feb 2012

FINANCIAL HIGHLIGHTS:

1. Headline earnings increased by 19% to ZAR 17 billion
2. Revenue increased by 28% to ZAR 45.8 billion driven by 26% higher prices
3. Operating profit of ZAR 32 billion up 27%
4. Cash generated from operations rose by 27% to ZAR 34.3 billion
5. ZAR 8.7 billion paid to South African government
6. Record ZAR 17.9 billion paid in dividends
7. Total cash dividend of ZAR 22.50 per share; final cash dividend of ZAR 44.20 per share

OPERATING HIGHLIGHTS:

1. Exceptional safety performance; zero fatalities
2. Envision returned ZAR 2.7 billion to employee shareholders
3. Kolomela mine production five months ahead of schedule and within budget
4. Production at Sishen mine negatively impacted by abnormal rainfall during H1
5. Record breaking 39.1 million tonne railed on the Sishen-Saldanha line
6. Record export sales volumes of 37.1 million tonne despite production challenges at Sishen mine

Commenting on the results, Mr Chris Griffith CEO of Kumba Iron Ore said that "Driven by export volume growth and a 26% increase in iron export prices, Kumba delivered another set of outstanding financial results for 2011. We have achieved records in safety, exports, earnings and dividends. We are particularly proud of the progress made at Kolomela mine, which delivered on its promises, five months ahead of schedule and within budget. These results, together with the exceptional safety performance demonstrate that our strategy of optimising value from current operations and investing in safe, quality growth projects, is delivering.”

"We are also delighted with Envision, our broad based employee share scheme. Envision sits alongside our broad based empowerment initiatives and sets a benchmark for employee empowerment goals and ideals in our country. Kumba has delivered meaningful broad based value transfer to our employees with a capital distribution of ZAR 2.7 billion, and ZAR 526 million distributed in 2011 to the communities in which operate. This is in addition to our dividend paid to Exxaro of ZAR 3.5 billion."

On the outlook for 2012, Mr Chris Griffith added that "Current volatile market conditions are expected to persist during the first half of the year. Iron ore prices in the second half of 2012 will be largely dependent on the improvement in the overall global economy, and in particular, the monetary policy easing in China."

He said that waste mining at Sishen mine is anticipated to increase again this year, in line with the planned ramp up that commenced in 2009, which will put upward pressure on unit cash costs of production. Annual production volumes from Sishen mine are expected to return to design capacity. Kumba's ability to supply iron ore to the market will be enhanced by the ramping up of Kolomela mine during 2012 to produce between 4 million tonne and 5 million tonne in 2012. Export sales volumes in 2012 are anticipated to grow by some ~3 million tonne from the volumes achieved in 2011 as volumes from Kolomela mine ramp up, offset by the fact that excess finished product stockpiles at Sishen mine have been depleted to normal operating levels. Domestic sales volumes remain dependent on the off-take requirements from ArcelorMittal.

He added that "Our growth target of achieving 70 million tonne by 2019 in South Africa remains intact. Several studies are being conducted in central and west Africa as part of the company's growth strategy to establish a second mining footprint in Africa. Our focus continues to be on safety, production and mining volumes, sales and containing costs. These initiatives will help to lessen the adverse effects of inflationary cost escalations and operational cost pressures."

Sponge iron prices dip further at Raipur

- 10 Feb 2012

Sponge iron

Change is on 9th February as compared to 8thh February 2012
Change is in INR per tonne

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.

(Sourced from www.steelprices-india.com)

ArcelorMittal announces Q4 and FY 2011 results for Flat Carbon Europe

- 10 Feb 2012

Flat Carbon Europe crude steel production amounted to 6.6 million tonnes for the three months ended December 31st 2011, a decrease of 10.4% as compared to 7.4 million tonnes for the three months ended September 30th 2011. Production decreased reflecting very weak market sentiment in Europe and the reduction of inventories accumulated in the third quarter.

Steel shipments for the three months ended December 31st 2011 were 6.2 million tonnes, a decrease of 3.1% as compared to 6.4 million tonnes for the three months ended September 30th 2011. Steel shipments decreased during the fourth quarter of 2011 due to weaker market conditions and strong destocking activity.

Sales in the Flat Carbon Europe segment were USD 7.0 billion for the three months ended December 31st 2011, a decrease of 9.0% as compared to USD 7.7 billion for the three months ended September 30th 2011. Sales decreased primarily due to lower steel shipment volumes and lower average steel selling prices (-6.6%) impacted by base prices and currency effects.

EBITDA for the three months ended December 31st 2011 was USD 26 million, as compared to USD 367 million for the three months ended September 30th 2011, primarily driven by lower steel shipment volumes and significant price cost squeeze.

Operating performance in the fourth quarter of 2011 was negatively impacted by impairment charges of USD 56 million relating to various idled facilities and restructuring costs totaling USD 143 million associated with the implementation of the Asset Optimization Plan primarily relating to Spanish entities. These charges were offset however, by several positive items: a DDH income USD 163 million recognized during the quarter and a net gain of USD 93 million recorded on the sale of carbon dioxide credits, the proceeds of which will be re-invested in energy saving projects.

Operating results in the third quarter of 2011 included a DDH income of USD 129 million and USD 85 million in impairment charges relating to costs associated with the announced intention to close the two blast furnaces, sinter plant, steel shop and continuous casters in Liege, Belgium.

For the comparable fourth quarter of 2010, operating results were positively impacted by DDH income of USD 88 million and a gain of USD 140 million recorded on the sale of carbon dioxide credits, which were partly offset by a USD 37 million impairment charge primarily relating to idled downstream assets.

In USD million unless otherwise shown

North Dakota coal mines score a perfect compliance record

- 10 Feb 2012

North Dakota's four lignite coal mines achieved a year of no violations in 2011, the fourth time in mine history that the entire industry has earned a clean bill from the Public Service Commission.

PSC Commissioner Kevin Cramer said he and the staff look at mine operations throughout the year and said the 2011 achievement was especially notable during one of the wettest years on record.

Mr Jim Deutsch director of mine reclamation said the good compliance record for the year is due to the longevity of many mine employees and their familiarity with both state and federal mine standards.

North Dakota passed its first reclamation laws in 1969 and strengthened them a decade later. The federal Surface Mining Control and Reclamation Act was passed in 1977.

North Dakota's four lignite mines are the Freedom Mine north of Beulah, the Falkirk Mine near Underwood, the Center mine, and the Beulah mine. Together they mined nearly 28 million tons of coal last year disturbing 1,500 acres of land.

The other years of no violations were in 1996, 2000 and 2002 dating back to when the process started in 1975.

(Sourced from BismarckTribune.com)

Hyundai Steel to launch HRC capacity expansion project

- 10 Feb 2012

South Korea's second largest steel producer Hyundai Steel has announced that it will launch its planned hot rolled coil capacity expansion project at the end of this week.

Accordingly, Hyundai Steel's annual capacity of HRC will increase by 2 million tonnes to 10.3 million tonnes by 2013.

Hyundai Steel plans to start its capacity expansion project with the upgrading of hot rolling equipment at its Dangjin plant in Seoul from February 11th 2012 to February 25th 2012, following which it will gradually expand the flat steel output capacity at Dangjin.

Hyundai Steel stated that during the upgrading work in question its HRC output would see a slight decrease, but would not influence the planned annual output volume. Meanwhile, Hyundai Steel also plans to buy a roughing mill and a reheating furnace for its Dangjin facilities.

The overall HRC capacity expansion project is expected to be completed by June 2013.

(Sourced from Steel Orbis)
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