Sunday, March 8, 2009

Steel Trade Today - Monday, Mar 09, 2009

STEEL TRADE TODAY
Indian Edition
Chandra Sekhar Monday, Mar 09, 2009
Price Index - India
  06-Mar 05-Mar Change
ILPPI 6662 6688 -26
IFPPI 6658 6658 0
INDSPI 6660 6674 -14
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Indian

Monday Market Monitor - India (WEEK 10) - Market divergent

TATA Metaliks inaugurates ductile iron pipe JV

RINL orders for bar mill from Siemens VAI Metals

Directory of Overseas Scrap Suppliers to India

TATA Metaliks shifts steel project from WB to Karnataka on land delays

Stimulus plans - Shipbuilders to get INR 5,000 crore subsidy

Indian domestic steel prices to remain weak - CMIE

Difficult time for good relations with workers - Mr Muthuraman

Panel of judges assess RINL for PM Trophy

ASSOCHAM suggest 12 points for election manifestos

RINL disinvestment move triggers row

Slowdown signs - Indian exports fall by 13% in February

Indo-Pak trade may fall by 60% in 2009-10 - FICCI

HSL begins steel processing of tugs

Jai Corp clarifies on news item

Nepalese steel imports increase - Report

Others

Monday Market Monitor - CIS (WEEK 10) - Major crash seen

Indian iron ore spot prices for exports likely to go down further

Monday Market Monitor - EU (WEEK 10) - Demand remains unseen

Indian domestic iron ore prices remain firm despite global fall

Monday Market Monitor - China (WEEK 10) - Southward momentum

US DOC preliminary AD review results on HR from Japan

Scrap prices weaken at Rotterdam

Chinese coke export price remains at artificial levels

US ITC to conduct sunset review on pre stressed concrete steel

EBRD to take stake in private Mongolian coking coal mine

SHFE steel futures not to start today

Ukrainian finished steel down by 34%YoY in 2 months

BDI closes last week on positive note

Monday Market Monitor - Middle East (WEEK 10) - Slide continues

First thermal coal supply agreement signed in China

Downsizing deals - Severstal schedules meetings with workers

February steel import license applications into EU down by 7% MoM

Straits Asia to double coal output

Rebar and WRC prices crash by USD 50 at Black Sea last week

Venezuela to build 1.5 million tonne steel plant

Chinese plate export prices remain weak

Foundation stone laid for Seyyanoor stainless steel plant

PT Indo Tambangraya profit up four fold

Vietnamese domestic steel price on downward trend

Production pruning - Maanshan cuts output by 10%

Falling iron ore prices may propel dry bulk shippers

Readymade information to help you expand your reach in India

Slowdown signs - Taiwanese coal imports dips by 25% YoY

Production pruning - Venezuelan briquette makers at 40%

Chinese auto majors may go for joint purchase of steel

CR prices crash by 13% at Black Sea last week

Egyptian steel producers demand duties on rebar import

Merafe sees raw chrome export from SA worsening

SA competition body approved Richards Bay Minerals venture

Annual Report on China's Steel Market in 2008 and the Outlook for 2009


Monday Market Monitor - India (WEEK 10) - Market divergent

- 09 Mar 2009

ON the whole Indian Steel Prices remained stable last week as the fall in long products was compensated by rise in flat products. The Indian Long Product Price Index ILPPI dipped by 30 points, whereas the Indian Flat Products Index IFPPI improved by 47 points. The overall price index INDSPI improved by 7 points:

Class27-Feb06-MarChange
ILPPI66926662-30
IFPPI6611665847
IDSPI665466607
ILPPI - Indian Long Product Price Index
IFPPI - Indian Flat Product Price Index
INDSPI - Indian Steel Price Index

Long Products
Category27-Feb06-MarChange
PI - TMT64776431-47
PI - WRC71627160-2
PI - Angle63416288-53
PI - Channel63736338-35
PI - Joist59095848-61


Flat products
Category27-Feb06-MarChange
PI - Narrow Plates6238629355
PI - Wide Plates6669671949
PI - Hot Rolled6448648336
PI - Cold Rolled7178722244
PI - Galvanized68246931107
To know more about these indices please visit
http://steelprices-india.com/spi_services/spi.html

The seeds of revival in Indian domestic steel prices were sown about a month back when the buyers started feeling the pinch of shortage resultant of production pruning by steel majors. Post February 25th 2009, it was commonly perceived that the Indian government’s initiative of reduction in excise duty by 2% would bring relief to steel consumers in general. However on analyzing the pricing pattern during this period, the reality seems to be different especially for products, which are sold in the market on basic prices plus excise duty and VAT. The price of Flat products remained unchanged whereas long prices dipped by 2% across all major locations from 24th February to 25th February showing that the steel majors did not pass over the benefit in Flats but did so in longs. It took less than a week time for this short lived reprieve to vanish when prices remained stable to negative for the most of the products. (Ref STT 04/03/09: Update on HR domestic and import scenario in India).

The scenario looks increasingly ominous with China becoming aggressive in exports making lucrative offers and with the parity being skewed big time imports seems inevitable gravitating the domestic market further.

Input materials remained buoyant

The prices showed resilience, nonetheless there were some pockets of negativity in scrap prices at Mumbai and Kolkata primarily due to bearish international scrap prices having an impact on this port based cities.

Melting scrap
80:20
HMS
LocationChange%
Chennai13278.1%
Kandla7113.7%
Mumbai-500-2.9%
Mandi00.0%
Kolkata-96-0.5%
Kanpur 750.4%
Change is on March 6th 2009 as compared to February 27th 2009
Change is in INR per tonne

Alang
ProductSizeSizeChange%
ShipsMixedMixed1000.6%
Plate cuttings1”1”-400-2.1%
Change is on March 6th 2009 as compared to February 27th 2009
Change is in INR per tonne

Pencil ingot
LocationChange%
Mumbai-500-2.2%
Mandi-462-1.9%
Raipur -1066-4.9%
Kanpur -184-0.8%
Kolkata00.0%
Ghaziabad-500-2.0%
Muzzafarnagar-79-0.3%
Ahmedabad-100-0.4%
Change is on March 6th 2009 as compared to February 27th 2009
Change is in INR per tonne

Pig Iron
LocationChange%
Raipur -1200-6.2%
Kolkata00.0%
Change is on March 6th 2009 as compared to February 27th 2009
Change is in INR per tonne

Sponge iron
LocationChange%
Raipur -1200-7.7%
Kolkata-385-2.3%
Change is on March 6th 2009 as compared to February 27th 2009
Change is in INR per tonne

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

Roll back in Long products prices

Excise duty reduction by 2% had impact on the long product prices as the buyers were coerced to pass on the benefit due to weak market sentiments. Chennai was the lone shinning star with heightened trader’s activity to liquidate stocks and some hustle in construction activity.

TMT
Fe 415
12mm
LocationChange%
Chennai13004.3%
Mumbai-1689-5.5%
Mandi2080.6%
Kolkata-610-1.9%
Delhi 00.0%
Kanpur -700-2.2%
Ahmedabad-788-2.7%
Indore -1100-3.4%
Change is on March 6th 2009 as compared to February 27th 2009
Change is in INR per tonne

WRC
SWR14
5.5/6
LocationChange%
Chennai4001.4%
Raipur -711-2.4%
Kolkata4811.7%
Delhi -453-1.4%
Kanpur 3781.3%
Change is on March 6th 2009 as compared to February 27th 2009
Change is in INR per tonne

ANGL
GR A
65x6
LocationChange%
Chennai4001.4%
Raipur -711-2.4%
Kolkata4811.7%
Delhi -453-1.4%
Kanpur 3781.3%
Change is on March 6th 2009 as compared to February 27th 2009
Change is in INR per tonne

CHNL
GR A
75/100
LocationChange%
Chennai10003.3%
Mumbai-1914-5.9%
Mandi-520-1.5%
Raipur -520-1.7%
Kolkata-90-0.3%
Delhi -520-1.6%
Kanpur -200-0.6%
Ahmedabad-619-2.1%
Indore-800-2.5%
Bangalore5001.5%
Change is on March 6th 2009 as compared to February 27th 2009
Change is in INR per tonne

JSTI
GR A
250x125
LocationChange%
Chennai5001.6%
Mumbai-1914-5.7%
Mandi-728-2.0%
Raipur -520-1.7%
Kolkata-642-1.9%
Delhi -520-1.6%
Kanpur -400-1.2%
Ahmedabad-208-0.7%
Indore-400-1.2%
Bangalore5001.5%
Change is on March 6th 2009 as compared to February 27th 2009
Change is in INR per tonne

Flat products prices improve

Flat product prices exhibited remarkable resilience primarily due transient shortage created by production pruning by steel majors over the last couple of months.

HRC
Tube
2.5x1250
LocationChange%
Mumbai00.0%
Ludhiana 3701.3%
Kolkata2641.0%
Delhi 00.0%
Ahmedabad-277-0.9%
Indore-711-2.4%
Bangalore00.0%
Change is on March 6th 2009 as compared to February 27th 2009
Change is in INR per tonne

Patra
LocationChange%
Ludhiana 1620.6%
Mandi-831-2.9%
Delhi 00.0%
Change is on March 6th 2009 as compared to February 27th 2009
Change is in INR per tonne

PLTS
GRA
8x1.5
LocationChange%
Chennai5001.8%
Mumbai00.0%
Kolkata5251.9%
Delhi 00.0%
Kanpur 5491.9%
Change is on March 6th 2009 as compared to February 27th 2009
Change is in INR per tonne

PLTS
GRB
12-20x2.5
LocationChange%
Chennai5001.6%
Mumbai4621.5%
Raipur -888-2.9%
Kolkata4461.6%
Delhi 00.0%
Kanpur 5721.9%
Ahmedabad00.0%
Indore-267-0.9%
Bangalore00.0%
Change is on March 6th 2009 as compared to February 27th 2009
Change is in INR per tonne

CR
DSK
0.63x1000
LocationChange%
Chennai5001.5%
Mumbai-924-2.9%
Pune-924-2.9%
Kolkata9803.0%
Delhi 00.0%
Kanpur 6391.9%
Ahmedabad00.0%
Change is on March 6th 2009 as compared to February 27th 2009
Change is in INR per tonne

GC
100Gms
0.4
LocationChange%
Chennai5001.4%
Mumbai-1333-3.6%
Kolkata8762.4%
Delhi 00.0%
Kanpur 6751.9%
Bangalore00.0%
Change is on March 6th 2009 as compared to February 27th 2009
Change is in INR per tonne

Indian steel makers especially HDG and PPGI makers continued to book maerials last week albeit at lower levels, where as plate producers found difficult to get buyers at targeted lvels.
ItemGradeSizeUSDDelivery
BilletCommon125x125None
HRC Structural2-4None
PLTSStructural12-40x2.5480FOB Vizag
HDG100Gms0.4620FOB Mumbai
PPGIStandard RAL0.4800FOB Mumbai
In USD per tonne

Note

1. As international prices for billets are very low at USD 345 per tonne CFR, Indian billet export is not viable.

2. Understand Indian mills are not offering HRC as the domestic demand is very high.

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)

TATA Metaliks inaugurates ductile iron pipe JV

- 09 Mar 2009

TATA Metaliks Ltd announced that 110,000 tonnes per annum ductile iron pipe manufacturing facility of TATA Metaliks Kubota Pipes Ltd, a subsidiary of TATA Metaliks Ltd, has been inaugurated at Kharagpur on March 7th 2009 by Mr B Muthuraman MD of TATA Steel Ltd.

The plant is set up at an investment of INR 185 crore within the premises of TATA Metaliks' Pig Iron plant at Kharagpur. Trial runs at the DI Pipe Plant have commenced and it expects to start commercial production of ductile iron pipes from April 2009.

TATA Metaliks Kubota Pipes Ltd a 51:44:5 JV between TATA Metaliks Ltd, Japan’s Kubota Corporation and Metal One Corporation.

Mr Harsh K Jha MD of TATA Metaliks on the sidelines of the inauguration ceremony of the unit said that the plant would annually produce 011 million tonne of DI pipes in the first phase, which would be ramped up to over 2 million tonne later.

Mr B Muthuraman MD of TATA Steel said that the unit is a part of the diversification plan of TML and would cater to the high demand of ductile iron pipes. He said that the plant is commissioned in the middle of a global recession and we take it as a challenge to ramp up production capacity and quality with help from the Kubota Corporation, the world leader in the area.

Mr Mishra CEO of the new unit said “That ductile iron pipes are mostly required in supplying water and the centre and different state governments would be the largest consumer of the pipes. He said that the annual demand for DI pipes in the country is nearly 8 million tonne of which only 5 million tonne is produced currently.”

He added that as part of the agreement with Kubota, TMKPL would export 20% of the total produce to West Asia, South East Asian countries and Africa. The low cost of production in the India, as compared with Japan, would give Kubota an edge in supplying the offshore markets. Metal One would market the pipes for export.

RINL orders for bar mill from Siemens VAI Metals

- 09 Mar 2009

Siemens VAI Metals Technologies is to erect a new rolling mill for long products at Rashtriya Ispat Nigam Limited’s Visakhapatnam Steel Plant.

RINL, as a part of its 6.3 million tonne per year expansion project wants to set up a 750,000 tonnes per year capacity Special Bar Mill to produce special merchant bars. The new rolling mill is scheduled to start operating in 2011.

In spring 2008, Siemens received an earlier order for the Visakhapatnam Steel Plant works whereby Siemens was contracted to supply the power distribution system as well as components of the material handling system.

As part of this expansion program, Siemens is supplying not only the mechanical and electrical equipment for a new rolling mill, which will produce special bar quality steel, but also the associated automation systems as well as ancillary equipment and auxiliary systems.

The project encompasses the re heating zone, a bar rolling line and a “bar-in-coil” line.

For re-heating purposes, Siemens is supplying the billet charging equipment, a walking beam furnace for around 200 tonnes of billets per hour, and the descaling equipment. Designed for a maximum speed of 16 meters per second, the rolling line consists of 18 RedRing stands and a three stand sizing group as well as the associated pendulum, cropping, hot dividing and chopping shears. The final nine stands are being equipped with quick change attachments. This enables rapid changeover to new end products. Contactless Orbis measuring systems, one before and one after the sizing group, will monitor the product dimensions. Thermo processing systems will also be installed before and after the sizing section. The cooling bed after this is 132 meters long. Siemens is also supplying a cold-cutting area with a 1000 metric tons static shear and the short bar removal system. The rolling line is being completed with equipment for counting and bundling the bars as well as for bundle strapping, weighing and labeling.

For the “bar-in-coil” line, Siemens is supplying the bar conveying throughs, three pinch rolls and pre-bending machines, three Garrett pouring reels with stripper cranes, a thermo-processing system including air fans, a hook conveyor as well as machines for coil compacting, formation and labeling plus a coil discharging unit.

The electrical equipment includes 11 kV switchgear units, a reactive power compensation system, harmonic filters, converters, distribution transformers, main and auxiliary drives, motors, motor control centers and the uninterruptible power supply equipment. Siemens is also supplying all the basic and process automation as well as operator panels, an intercom system and a CCTV system.

The scope of supplies and services also covers spare parts, including main bearings, initial rolling roll and rings, guiding equipment, pinch rolls and shear blades. On top of all this, Siemens is supplying a roll shop, laboratory systems, heating/ventilation/air-conditioning equipment, fire protection equipment, jib cranes and other lifting gear. Other items of operating equipment that are also part of the project include the lubricating system, the hydraulic system, the equipment for supplying compressed air, oxygen and nitrogen as well as the water system.

Siemens is also performing supervision for erection and commissioning and is providing customer training and engineering services.

Directory of Overseas Scrap Suppliers to India

- 09 Mar 2009

India is large market for import of steel scrap and this is the directory which is going to help many interested group to know this industry.

Published in September 2008, 'Directory of Scrap Suppliers to India' has been comprehensively researched and prepared, to bring you a fully up to date guide to overseas scrap supplier.

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Content:
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• Company name -1191 entries
• Address-1191 entries
• Email-1074
• Phone number-1140
• Fax number -431 entries

Format:
PDF File
Total no of pages - 545

Delivery by Email on receipt of payment

Price:
USD 500 or equivalent in INR
Additional Charges would be levied for delivery of file on a CD or in printed form

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.

TATA Metaliks shifts steel project from WB to Karnataka on land delays

- 09 Mar 2009

It is reported that TATA Metaliks Limited has decided to shelve its proposed expansion plan in West Bengal due to the failure of the state government to provide the required land and has identified land for this some 300 km from Bangalore in Karnataka.

Mr Harsh Jha MD of TATA Metaliks said that “We have recently intimated to WBIDC that the company will not go ahead with the proposed expansion plan near the existing facility at Kharagpur.”

He said that the company had been waiting for allotment of land by the state government for the last four years for which an advance payment of INR 9.5 crore had been already made. Mr Jha said that “The waiting could not go on indefinitely. So we have intimated that the company would not go ahead with the plan.”

Mr Jha said that the decision regarding West Bengal is not an impulsive one, but is a considered opinion and the company wished not to pursue with it any longer.

Mr Subrata Gupta MD of WBIDC said that TATA Metaliks has cited high land prices, delay in land acquisitions and high-tension electric lines running over the plot as reasons for the cancellation of the project. He said that “WBIDC had acquired 192 acres and the delay was on account of hurdles in buying land directly from the owners.”

Mr Jha added that TATA Metaliks has secured the consent of the Karnataka government for setting up a Greenfield unit 300 kilometres away from Bangalore. He said that “The Karnataka government had offered 900 acres of land with water and power supply connection for setting up the plant in the state, with a a condition of allotting iron ore mining licenses.”

The proposed unit in Karnataka may produce pig iron, steel, ductile iron pipes and billets.

Stimulus plans - Shipbuilders to get INR 5,000 crore subsidy

- 09 Mar 2009

With the India government now ready to disburse INR 5,000 crore towards outstanding subsidy, the fledging Indian shipbuilding industry is upbeat once again. The industry, going through a down cycle is also looking forward to a fresh subsidy scheme from the next government to help it sail through choppy waters.

After 17 months of dispute between the shipping ministry and finance ministry, the latter on cleared last week the outstanding subsidy. It is to be given to companies for confirmed orders booked before August 14th 2007, when the scheme was finally closed by the government.

While public sector yards were to be given subsidy on installment basis, the private sector got it after the delivery of the ship.

In such a scenario, the domestic industry, which was booming a year ago, is struggling to survive. The INR 5,000 crore will provide a much-needed financial cushion.

Mr PC Kapoor MD of Bharati Shipyard said that "The company is eligible to receive subsidy of about 50% to 55% of its outstanding order book of INR 4,898.13 crore. The subsidy would help shipbuilding companies in planning for the future CAPEX requirement and expansion and also in easing liquidity and cash flows, especially in a downturn."

Mr S Hajara CMD of Shipping Corp of India said that "Before the close of the subsidy scheme in August 2007, several companies had booked orders hoping that the scheme would be extended. However, when it did not come, there was a lot of ambiguity in the industry." SCI, too, is planning a foray into shipbuilding from the end of this calendar.

Mr Dhananjay Datar CFO of ABG Shipyard said that "The private shipbuilding industry currently has an outstanding subsidy of about INR 250 crore. Therefore, the subsidy from the government will act as a big relief and a welcome move that the government is with the industry." The funds could also be used for future investments of these companies.

(Sourced from DNA)

Indian domestic steel prices to remain weak - CMIE

- 09 Mar 2009

PTI reported that CMIE said steel prices would remain weak domestically in 2009-10 but the output would grow by 6.5% during the period.

CMIE in its latest review said that “With a sharp reduction in input prices expected in the renewed contracts of domestic companies and global steel prices remaining subdued, we expect domestic steel prices to remain weak in 2009-10.”

CMIE said that “The downward trend will continue with average steel prices expected to fall by another 3% to 4% till March 2009.”

It, however, expected growth in steel output to pick up by 6.5% in 2009-10 driven by healthy demand from long steel products used in construction.

It said that “The Government's emphasis on infrastructure spending in order to stimulate economic growth would keep demand for long products healthy.”

(Sourced from Press Trust of India)

Difficult time for good relations with workers - Mr Muthuraman

- 09 Mar 2009

PTI cited Mr B Muthuraman MD of TATA Steel as saying that the next few months would be tough for the company to maintain the decades old cordial relation with the workers.

Mr Muthuraman said that "Due to prevailing global economic meltdown, the real test of the cordial relation between the company and the workers' union, TATA Workers Union would be tested in next 5 to 6 months."

According to him, the industrial peace and harmony maintained by TATA Steel and the union was not tested for over a decade as the market was good. But he was hopeful of overcoming the prevailing economic condition.

He said that "This is the time to demonstrate the maturity of our mind, fairness and look for long term gains." He added that the employee of TATA Steel has the capability to overcome difficulties and would lead the company to become one of the best companies in the world.

Mr Muthuraman further added that the records in profit and production, winning medals were possible for TATA Steel as the company and TWU worked together to achieve the laurels when the market conditions were favorable.

(Sourced from Press Trust of India)

Panel of judges assess RINL for PM Trophy

- 09 Mar 2009

The Hindu reported that the panel of judges of the Prime Minister’s Trophy has been evaluating Visakhapatnam Steel Plant’s performance for the award of PM’s Trophy for the best integrated steel plant for 2006-07 and 2007-08. The VSP has last won the trophy for the year 2005-06. The panel would leave on Sunday.

The panel members are Mr DR Ahuja former chairman of VSP, retired professor of Metallurgy from IISC Mr AK Lahiri, Mr KAP Singh former MD of Bokaro Steel Plant, Mr SN Mishra former Director (Projects) of SAIL, Mr Anil Agrawal financial expert and independent director of MECON, Mr Haridwar Ramyash Singh president of the INTUC, Mr S Swaminathan national working president of JMS, Mr SK Saluja nodal officer in the Prime Minister’ Trophy secretariat, Mr ACR Das industrial advisor in Ministry of Steel, Mr P Prasanth joint chief economist in Economic Research Unit and Mr Sunil Gupta Prime Minister’s Trophy Secretariat member.

During the visit, the panel is interacting with the CMD, directors and key functionaries of the plant to evaluate people management’ and customer satisfaction. It would also interact formally with various award winners, members of women in public sector, steel executives association and representatives of various unions.

The panel complimented Visteel Mahila Samithi for its proactive role in the development of differently abled children of Arunodaya Special School and for other socio-economic developmental activities being carried out by it in and around the plant.

(Sourced from The Hindu)

ASSOCHAM suggest 12 points for election manifestos

- 09 Mar 2009

The Associated Chambers of Commerce and Industry of India has drawn up a dozen point agenda for Manifestos of political parties, seeking tax brakes for India Inc, reforms in labor laws, review of income tax act and GST introduction by 2010, strongly recommending that National Investigation Agency be made a Nodal Agency for all terrorist encounters.

The ASSOCHAM in its paper on suggestions for election manifestos of political parties, which was jointly released here today by its President, Mr Sajjan Jindal and Secretary General, Mr DS Rawat also emphasis for committing a time bound rural development and employment generation program in election manifestos of political parties.

The Paper said that agriculture needs to be revamped with extreme commitment of political parties for which their manifestos must promise metamorphic changes.

The surge in government revenues from lower direct taxes in the last 15 years has demonstrated the win to win situation that a low tax regime creates for all stake holders. The logic of this has to be extended to bring corporate and income tax regime on par with those prevailing in countries with best business environment.

A comprehensive review of the Income Tax Act is needed to make compliance with the tax regime simpler and easily comprehensible for the millions of middle class tax payers and reduce litigation. Corporates should be offered compromise solutions instead of all the time knocking at court doors for legal interpretations that differ from one authority to another and confuse everybody including the government.

In the next budget, steps should be taken to introduce the General Sales Tax and smoothen problems in VAT implementation. The Service Tax has become a massive money spinner for the government and it would be even more so as the economy moves to a higher percentage of its GDP from services and expands. However, it must be recognized that any further increase in the rate of taxation would dissuade compliance and compel tax avoidance innovations by trade especially at the grass roots level due to the complexity of collection and bureaucratic harassment in remitting it.

The political parties should work harder so that ceiling on election expenditure by candidates and parties be removed since election expenses go beyond the prescribed ceilings and corporates, trusts and individuals be encouraged to contribute to ensure transparency.

Political parties should inform Election Commission about contributions they receive with full details of amount exceeding INR 10,000 on a regular basis. Central and state governments should create election fund from which registered political parties receive assistance on the basis of agreed formula.

The political parties should strive to ensure that all multi-state rivers are considered as national rivers and their resources be developed on basis of integrated catchments as per plans drawn by National River Water Commission. The Kaveri experience shows that without such a policy, State rivers cannot be converted into national sources.

Political parties realize that the cost of power to the consumer is rising partly due to persistence of theft and inefficiencies at every stage of power use. Government subsidies to keep the cost constant to the urban consumer and give free power to the rural one only perpetuate inefficiency and theft. If the situation is not improved through surgical intervention against vested interests, the more power is produced the more would be the basic loss leading to an unacceptable situation soon. There should be a balance between thermal, hydro and nuclear power. Now that the Indo-US nuclear deal has opened up the nuclear power generation to foreign capital and enterprise, efforts should be made to raise nuclear generation capacity to at least 40,000 MW by 2020 and 60,000MW by 2025.

RINL disinvestment move triggers row

- 09 Mar 2009

The Hindu reported that the talk of disinvestment in Visakhapatnam Steel Plant has raised a lot of heat in the past few days, particularly after confirmation on the reported recommendation of the Ministry of Steel to the Planning Commission for diluting equity.

The board of Rashtriya Ispat Nigam Limited, the corporate entity of VSP, cleared the proposal in December 2007. However, the UPA Government went slow on the decision following public outcry.

Meanwhile, there are reports that the Ministry is serious on offloading 26% of shares. Though the initial proposal is to sell 5% to 10% equity to the employees and allow outsiders subsequently, now there is no clarity on the issue.

Sources said the mandarins in the Ministry of Steel have mooted the plan to enable VSP to meet part of its fund requirement for the expansion project through disinvestment. There is also not much progress on the proposal to merge RINL and the National Mineral Development Corporation. The merger plan would have helped the company in saving huge amount it is spending on raw material.

VSP’s main disadvantage compared to other major steel producers is lack of captive mines, thereby forcing the company to shell down more than half of its production cost towards procuring raw material.

VSP has huge fund requirement to implement its Corporate Plan. Now, the project to expand its capacity from 3 million tonne to 6.3 million tonne at a cost of INR 8,692 crore is in advanced stage. The corporate plan envisages expanding the capacity to 16 million tonne by 2017-18 with an investment of around INR 26,000 crore.

Mr D Adinarayana president of Visakha Steel Workers’ Union, the recognized union of VSP said that “Whatever is the reason, we will oppose disinvestment in VSP. There is also unanimity among all the unions to oppose it strongly as it will ultimately lead to privatization after turning it around in 2002-03.”

(Sourced from The Hindu)

Slowdown signs - Indian exports fall by 13% in February

- 09 Mar 2009

The Financial Express reported that the truncated exports target of USD 175 billion for the fiscal would be hard to meet as the country's overseas sales dipped by 13% in February 2009, the 5 decline in a row.

According to quick estimates of the government, imports also fell for second consecutive month by about 18% during the period.

Exports in February contracted to USD 13.04 billion, while imports shrank by 18.1% to USD 17.02 billion, reducing the trade deficit to USD 4 billion compared to USD 5.69 billion in the same period last year.

The cumulative exports during April to February 2008-09 stood at USD 157.3 billion compared to USD 142.85 billion in the corresponding period last year. While imports in the same period grew by 21% to USD 260.35 billion from USD 215.22 billion in the year ago period. Even to touch the USD 175 billion exports target, the country requires about USD 18 billion in the next 3 weeks, which appears a toll order.

Mr A Sakthivel president of Federation of Indian Export Organizations said that "By seeing the continuous dip in the exports, we expect that India's exports will end up on USD 168 billion to USD 170 billion during the financial year."

(Sourced from The Financial Express)

Indo-Pak trade may fall by 60% in 2009-10 - FICCI

- 09 Mar 2009

Zee News reported that trade between India and Pakistan is likely to suffer a setback in the coming months and fall by 60% to USD 900 million during 2009-10 as domestic traders are shunning the neighboring country due to the turbulent situation there.

The survey said that there is great unwillingness on the part of Indian exporters to travel to Pakistan to conclude even the firmed up deals, adding that currently, the bilateral trade between the countries stood at over USD 2 billion. The survey was conducted by industry body FICCI amongst exporters and importers doing business with Pakistan.

It said that "The tumultuous situation in Pakistan has created a fear psychosis amongst Indian exporters and importers who say that cross border travel has been a major casualty following the recent developments in the neighboring country," adding that Wait and Watch is the preferred strategy for many as developments in Pakistan have become quite dramatic and unprecedented.

The key sectors that would see a significant dip in cross border trade include textile and apparel, textile machinery, cotton, agricultural products particularly cereals, steel and chemicals.

It said that while in the current situation bilateral trade is going down, some of the Indian exporters and importers may take advantage of third country channels like Dubai and Singapore.

It added that doing businesses in Pakistan through these channels have a good degree of comfort level and therefore Indian companies may leverage these alternatives to maintain some economic linkages with their counterparts in Islamabad.

It said that "For textiles, Indian importers have already initiated talks with producers and manufacturers from countries like Egypt and Italy as these are considered as good replacements for import sources from Pakistan."

The survey further said following the recent terror attack on Sri Lankan cricket team, trade between Pakistan and other nations from the SAARC region would also take a hit. It is also likely that companies from Sri Lanka may start sourcing more quantity from Indian companies.

Meanwhile, the bilateral trade between India and Pakistan had declined from USD 318 million in 1998-99 to USD 161.02 million in 1999-00.

(Sourced from zeenews.com)

HSL begins steel processing of tugs

- 09 Mar 2009

BL reported that the first steel cutting and processing of two 50 tonne bollard pull tugs began at Hindustan Shipyard Ltd. It was inaugurated by Mr RB Rao senior general manager.

HSL has so far built 9 tugs for various ports, including four for the Visakhapatnam port.

Based on the past performance, HSL has been given the order for 2 more tugs. The first tug will be delivered in 2 years and the second in 28 months.

(Sourced from Business Line)

Jai Corp clarifies on news item

- 09 Mar 2009

With reference to the news item appearing in a leading financial daily titled I-T raids Mr Anand Jain's premises, Jai Corp Ltd has clarified to BSE that the article is based on information attributable to and stated to have been given by the Income Tax Department.

The Company, therefore, cannot comment on the information sourced from the IT Department.

The release said that “Officials of the IT Department had visited the Company's office premises and residence of the Company's Chairman and others on March 5th 2009 and conducted a search operation. It has compiled with all reporting requirements.”

Nepalese steel imports increase - Report

- 09 Mar 2009

kantipuronline.com reported that there has been an increase in the Nepal’s import of steel rods and cement from India as local factories have not been able to meet the demand as their output has been reduced due to load shedding.

Manufacturers said that it is not possible to operate steel and cement factories with generators because the power requirement is very high. Imports have increased since December as production has fallen by as much as 50%.

According to the data provided by the Birgunj customs office, there was no import of steel rods in the period mid November to mid December, but in the period mid December to mid January, steel rods worth INR 15.4 million were imported, and in the period mid January to mid February, INR 177.7 million worth of rods were imported. However, it is not only because of the load shedding that there has been an increase in the import of steel rods.

Nepal consumes 350,000 tonne of steel rods per year. Since, the demand was being met by domestic production there was a 30% customs duty, 13% VAT and 1.5% local tax on steel rods. These taxes are still in place sending up the cost of steel rods and making them more expensive than in India.

An importer said that “Despite the significant decline in prices in the international market manufacturers have not cut costs citing load shedding as a reason. Therefore, we started importing.

(Sourced from kantipuronline.com)

Monday Market Monitor - CIS (WEEK 10) - Major crash seen

- 09 Mar 2009

It is clear that the situation and expectations have worsened last week very seriously at Black Sea for steel prices as compared with the previous week. Prices moved down quite rapidly last week. But this is almost all that is clear now.

If at the very beginning of the week negative tenancies were seen on longs, specially semis, market and flats was quite stable in this terms., the situation for flats was totally different at the weekend.

All levels are a kind of “proposals”, and that in many cases they are illogical in market terms and unstructured. This is reflected by Ukrainian material proposals being more expensive than the Russian ones.

For billets “low” border of price is quite unclear it is said to be around USD 300 per tonne to USD 320 per tonne on FOB Black Sea basis but some market sources also said that it “might be below the level” say USD 290 per tonne..

As a general trend, with comparatively similar to the same period of 2008, volumes of billets export for finished longs supplies decreased rapidly is estimated around 50%. And this might be one of the explanations why prices for finished longs do react on market slowly, less proposal and market volume gives less “inertia”.

Previously situation for flats was more stable, despite the lack of demand, but, in general, situation was better than for longs. How ever last week suppliers lost around 30% of volume comparing to last year winter.

Thus on the whole Black Sea market is under a state of chaos and further development is totally unclear.

ItemGradeSizeChange
Billets3-5 sp/ps125-150 mm-33
RebarsA300C-A500C12-32 mm-40
Wire rodmesh5.5-6.5 mm-35
HRCST1-ST3 kp/sp/ps (Ukr)2-8 mm-25
HRCST1-ST3 kp/sp/ps (Rus)2-8 mm-40
PlatesA368-30 mm-10
CRC08 kp (Ukr)0.5-1.5 mm-20
CRCRussian origin0.5-1.5 mm-30

Change is on March 6th 2009 as compared to February 27th 2009
Change is in USD per tonne
Delivery FOB Black sea

The gap between Black Sea port prices and Chinese Main port prices widens for billets and HRC due to further fall in Black Sea prices but narrows for Wire Rods & CRC signifying accelerated fall in Chinese prices. Plates from Black Sea however continued to reign supreme.

ItemGradeSize06-Feb27-Feb06-Mar
BilletQ235150x150-130-167-210
RebarHRB40012-25mm-105-120-120
Wire rodQ1955.5-12mm-120-135-125
HRCSS 4004.5-11mm-165-130-145
PlatesSS 40012-40mm652590
CRCSPCC1.0x1250-130-135-125

In USD per tonne
Delivery on FOB basis

To know exact prevailing FOB prices at Black Sea, China, India, Turkey and Europe, as they change, subscribe to services of www.steelprices-india.com by registering or sending a mail to admin@steelprices-india.com with contact details. Please note that this is a paid service.

(Sourced from www.steelprices-india.com)

Indian iron ore spot prices for exports likely to go down further

- 09 Mar 2009

The FOB East Coast prices of Indian iron ore have gone down further last week. This reduction has brought down the spot prices of Indian iron ore FOB East Coast of India went down by 17% to 22% on March 6th 2009 for various grades as compare to prices prevailing on February 10th 2009/

GradeChange%
Fe 63.5/63%-13-18%
Fe 63.5/62.5%-12-17%
Fe 63/62 %-12-18%
Fe 62 / 61%-13-20%
Fe 61 / 60 %-9-16%
Fe 60/59 %-9-16%
Fe 59 / 58 %-12-22%
Fe 58 / 57%-11-22%

Change is during March 6th and February 10th 2009
Change is in USD per tonne

Considering the present situation, where hardly any transactions are taking place despite lowering of prices by Indian miners, market sources point to further reduction in prices.

It is forecast that Indian spot prices will at least touch the low levels seen in early November 2008, if not go lower, which was about USD 55 per tonne FOB East Coast of India for 63.5% Fe Grade.

To know exact levels, likely scenario, domestic iron ore spot prices at Bellary and Burbil and FOB East Coast spot prices subscribe to “Iron Ore Services” of www.steelprices-india.com by registering or sending a mail to admin@steelprices-india.com along with your full contact details. Please note that this is a paid service.

(Sourced from www.steelprices-india.com)

Monday Market Monitor - EU (WEEK 10) - Demand remains unseen

- 09 Mar 2009

European market for flat products remained weak.

HRP
S 235 / S275JR
5-20x2000
Domestic

Country27-Feb6-MarChange
Germany470-500470-500None
Spain450-470450-470None
Italy410-420410-420None

In EUR per tonne

HRP
S 235 / S275JR
5-20x2000
Imports
Country27-Feb6-MarChange
Spain380-400380-400None
Italy370-380370-380None
Germany400 - 430400-420None

In EUR per tonne

HRP
S 235 / S275JR
10-50x2500-3000
Domestic
Spain470-500470-500None
Italy450-470450-470None
Germany530-550530-550None

In EUR per tonne

HRP
S 235 / S275JR
10-50x2500-3000
Imports
Country27-Feb6-MarChange
Germany460 - 480460-480None
Italy400-420400-420None
Spain430-450420-440-10

In EUR per tonne

HRC
S235JR
2-12x1000-1500
Domestic
Country27-Feb6-MarChange
Spain380-400380-400None
Germany390-430390-430None
Italy330-340330-340None

In EUR per tonne

HRC
S235JR
2-12x1000-1500
Imports
Country27-Feb6-MarChange
Spain330-340320-330-10
Germany320 - 360310-340-10
Italy320-330310-320-10

In EUR per tonne

CRC
DC 01
0.60 Avx1250
Domestic
Country27-Feb6-MarChange
Spain430-450430-450None
Italy400-410400-410None
Germany450-470450-470None

In EUR per tonne

CRC
DC 01
0.60 Avx1250
Imports
Country27-Feb6-MarChange
Spain380-400370-390-10
Italy380-400370-390-10
Germany380 - 400380-390None

In EUR per tonne

HDG
DX 51 D / Z100-120 / AS
0.55 - 0.57x AW
Domestic
Country27-Feb6-MarChange
Spain520-540520-540None
Italy470-490470-490None
Germany530-540530-540None

In EUR per tonne

HDG
MA-C / Z180 / Cr Free
0.60 Avx1250
Imports
Country27-Feb6-MarChange
Italy490-510490-510None
Germany550-560550-560None
Spain530-550530-550None

In EUR per tonne

All prices are net to the final customer with following payment terms

A. Italy & Spain
1. Domestic prices are EXW or DDP with payment 90 days from delivery
2. Import prices are CIF FO with LC at 90 days from B/L date

B. Germany
1. Domestic prices are EXW or DDP with payment on the 15th of the following month
2. Import prices are CFR FO with open term payment at 30 days from date of arrival

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.

(Sourced from www.steelprices-europe.com)

Indian domestic iron ore prices remain firm despite global fall

- 09 Mar 2009

International Iron ore prices have bellied any prophecy by its undulation in the last quarter of 2009 nonetheless a definite correlation can be observed on circumcision of the movements in Chinese steel market.

In the pre Lunar Holidays (25th -31st Jan’09) period international prices exhibited buoyancy owing to the frenzy among the steel manufacturers in China pumped up by the stimuli package of USD 585 billion, but it took less than a weeks time for this hallucination to vanish in the post holiday period as the prices started plummeting relentlessly touching 18% fall. (Grade Fe 63.5/63%) since 10th February’09.(Ref: Steel Guru of 7th March’09: Indian iron ore spot prices continue southward march)

But, the same pattern is missing in the Indian domestic Iron ore prices. They have remained rock steady amazing the veterans in this industry. This is lucidly shown in the below table

Barbil

ProductGradeSize02-Dec02-Jan02-Feb06-Mar
Iron ore - BFFe 65%10-402850285028502850
IOS-PrimaryFe 63%5-183300330033003300
IOS - SecondaryBF 2150215021502150
Iron ore - FinesFe 63%Fines700700700700

Prices in INR per tonne
Ex Mines
Royalty and taxes not included

Bellary
ProductGradeSize02-Dec02-Jan02-Feb06-Mar
Iron Ore CalibrateFe 65%10-401800220024002200
Iron Ore CalibrateFe 64%10-401700210022502000
Iron Ore CalibrateFe 62%10-401350170018501500
Iron Ore CalibrateFe 60%5-201400150015501600
Iron Ore CalibrateFe 62%5-201800180019001800
Iron ore - FinesFe 63%Fines1150125013001450

Prices in INR per tonne
Ex Mines
Royalty and taxes not included

Experts in the industry opine that this strange trend can be imputed to the following reasons

1) Spurt in the demand of sponge iron from small furnaces as they have progressively increased percentage of sponge iron in the input composition vis à vis scrap primarily as a fall out of uncertainty in the availability and prices of scrap. The longer lead time in delivery has hardly helped their cause.

2) 4% depreciation of INR to USD, thereby having an incremental impact on the import cost of scrap.

3) Curtailed rake availability, for Iron ore dispatches, cramping its availability in the short run.

However the continuance of this honeymoon depends largely on the happenings in the international arena . An extended depressed phase in the Chinese market is likely to have similar ramifications on the domestic prices as the immoveable volumes will ameliorate the availability lest the miners drastically prune their production.

To know exact levels, likely scenario, domestic iron ore spot prices at Bellary and Burbil and FOB East Coast spot prices subscribe to “Iron Ore Services” of www.steelprices-india.com by registering or sending a mail to admin@steelprices-india.com along with your full contact details. Please note that this is a paid service.

(Sourced from www.steelprices-india.com)

Monday Market Monitor - China (WEEK 10) - Southward momentum

- 09 Mar 2009

The Chinese domestic steel prices continued to dip last week without any let up after continued fall during Week 09, which is reflected in Chinese Steel Price Index. Values for Week 10 shall be made available soon.

ClassW8'09W9'09Change%
CLPPI66396379-260-3.9%
CFPPI65696394-175-2.7%
CHISPI65996388-212-3.2%

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

CategoryW8'09W9'09Change%
WRC64306177-253-3.9%
Rebar68916622-269-3.9%


CategoryW8'09W9'09Change%
PLTS64166151-265-4.1%
HR66156442-174-2.6%
CR65896472-118-1.8%
GP64916349-142-2.2%


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

Billets
150*150
Q235
LocationCNYUSD%
Jiangsu Province-150-22-5.0%
Shandong Province-250-37-8.9%
Hebei Province-200-29-7.1%
Shanxi Province-120-18-4.1%
Shaanxi Province-250-37-8.5%
Tianjin-200-29-6.9%
Fujian Province-130-19-4.4%

Change is on March 6th 2009 as compared to February 27th 2009
Change is per tonne

WRC
6.5mm
Common
LocationCNYUSD%
Shanghai-40-6-1.2%
Hangzhou-70-10-2.1%
Nanjing-150-22-4.6%
Hefei-100-15-3.0%
Changsha-110-16-3.3%
Zhengzhou-150-22-4.5%
Chengdu-110-16-3.0%
Guiyang-150-22-4.2%
Kunming-100-15-2.8%
Urumchi-200-29-5.2%

Change is on March 6th 2009 as compared to February 27th 2009
Change is per tonne

Rebar
20mm
HRB 400
LocationCNYUSD%
Shanghai-90-13-2.8%
Hangzhou-120-18-3.6%
Nanjing-150-22-4.3%
Jinan-110-16-3.1%
Hefei-150-22-4.2%
Fuzhou-150-22-4.5%
Nanchang-200-29-5.8%
Guangzhou-100-15-2.7%
Changsha-150-22-4.1%
Wuhan-80-12-2.2%
Zhengzhou-150-22-4.2%
Beijing-170-25-4.8%
Tianjin-170-25-4.9%
Shijiazhuang-160-23-4.5%
Taiyuan-250-37-7.0%
Shenyang-100-15-2.8%
Harbin-150-22-4.1%
Chongqing-150-22-4.0%
Chengdu-80-12-2.0%
Guiyang-180-26-4.7%
Kunming-80-12-2.0%
Xian-140-20-4.0%
Lanzhou-100-15-2.6%
Urumchi-250-37-6.1%

Change is on March 6th 2009 as compared to February 27th 2009
Change is per tonne

HRC
4.75mm
Common
LocationCNYUSD%
Shanghai-40-6-1.2%
Hangzhou-60-9-1.8%
Nanjing-120-18-3.6%
Jinan-80-12-2.4%
Hefei-80-12-2.3%
Fuzhou-50-7-1.4%
Nanchang-50-7-1.4%
Guangzhou-80-12-2.4%
Changsha-80-12-2.3%
Wuhan-100-15-2.9%
Zhengzhou-50-7-1.4%
Beijing-130-19-3.9%
Tianjin-70-10-2.1%
Shijiazhuang-90-13-2.7%
Taiyuan-80-12-2.5%
Shenyang-60-9-1.8%
Harbin-150-22-4.3%
Chongqing-120-18-3.3%
Chengdu-120-18-3.3%
Kunming-50-7-1.3%
Xian-100-15-2.9%
Lanzhou-150-22-4.5%
Urumchi-200-29-5.6%

Change is on March 6th 2009 as compared to February 27th 2009
Change is per tonne

Plates
20mm
Common
LocationCNYUSD%
Shanghai-130-19-3.7%
Hangzhou-150-22-4.4%
Nanjing-250-37-7.4%
Jinan-90-13-2.6%
Hefei-100-15-2.9%
Fuzhou-100-15-2.8%
Nanchang-150-22-4.1%
Guangzhou-120-18-3.3%
Changsha-50-7-1.3%
Wuhan-80-12-2.3%
Zhengzhou-150-22-4.2%
Beijing-200-29-6.2%
Tianjin-140-21-4.3%
Taiyuan-180-26-5.4%
Shenyang-150-22-4.5%
Harbin-100-15-2.9%
Chongqing-50-7-1.3%
Chengdu-70-10-2.0%
Kunming000.0%
Xian-150-22-4.4%
Lanzhou-100-15-2.8%
Urumchi000.0%

Change is on March 6th 2009 as compared to February 27th 2009
Change is per tonne

CR
1.0mm
Common
LocationCNYUSD%
Shanghai-80-12-1.9%
Hangzhou-100-15-2.4%
Nanjing-150-22-3.6%
Jinan-100-15-2.4%
Qingdao-100-15-2.4%
Hefei-200-29-4.9%
Fuzhou-150-22-3.6%
Nanchang-70-10-1.6%
Guangzhou-180-26-4.4%
Changsha-150-22-3.5%
Wuhan-50-7-1.2%
Zhengzhou-100-15-2.3%
Beijing-50-7-1.2%
Tianjin000.0%
Shijiazhuang-50-7-1.1%
Taiyuan-50-7-1.1%
Shenyang000.0%
Harbin-50-7-1.1%
Chongqing-100-15-2.1%
Chengdu-120-18-2.6%
Kunming-100-15-2.2%
Xian-200-29-4.3%
Lanzhou-50-7-1.1%
Urumchi000.0%

Change is on March 6th 2009 as compared to February 27th 2009
Change is per tonne

HDG
0.5mm
Common
LocationCNYUSD%
Shanghai-170-25-3.7%
Hangzhou-100-15-2.2%
Beijing-150-22-3.4%
Tianjin-130-19-2.8%
Boxing-200-29-4.7%
Guangzhou-200-29-4.3%
Zhengzhou-250-37-5.7%
Xian-200-29-4.3%
Shenyang-250-37-5.4%
Harbin-350-51-8.0%
Nanchang-150-22-3.2%
Fuzhou-200-29-4.3%
Chongqing-300-44-6.1%
Wuhan-100-15-2.1%

Change is on March 6th 2009 as compared to February 27th 2009
Change is per tonne

Chinese exports prices continue plummeting

Due to surplus availability, the only option left for Chinese steel mills is exports. Although, in past they have been maintaining higher export offer levels, now it is likely that they will come to overseas markets and the slide in prices has started last week.

As Chinese levels are still higher as compared to Black Sea, further slide is expected in coming times.

ItemGradeSizeChange
BilletQ235150x15010
RebarHRB40012-25mm-40
Wire rodQ1955.5-12mm-45
HRCSS 4004.5-11mm-10
PlatesSS 40012-40mm-75
CRCSPCC1.0x1250-30
HDGSGCC 1.0x1250-40

HDG is in DX 51D 140gms
Change is on March 6th 2009 as compared to February 27th 2009
Change is in USD per tonne
Delivery FOB China port

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

(Sourced from www.steelprices-china.com)

US DOC preliminary AD review results on HR from Japan

- 09 Mar 2009

US Department of Commerce is conducting an administrative review of the antidumping duty order on certain hot rolled flat rolled carbon quality steel products from Japan.

US DOC said that “We preliminarily determine that, in accordance with sections 776(a) and (b) of the Tariff Act of 1930, as amended (the Act), adverse facts available (AFA) should be applied to JFE, Nippon, and Kobe for not cooperating with the Department in this administrative review. The antidumping margins assigned to these companies are listed in the Preliminary Results of Review section of this notice.”

Preliminary Results of Review
DOC said that “We preliminarily determine that the following dumping margins exist”

Manufacturer/exporter Margin
JFE Steel Corporation 40.26%
Nippon Steel Corporation 40.26%
Kobe Steel Ltd 40.26%

Duty Assessment
DOC said that “Upon publication of the final results of this review, the Department shall determine and US Customs and Border Protection shall assess, antidumping duties on all appropriate entries. For the period June 1st 2007 through May 31st 2008, we preliminarily determine the antidumping duty margin to be 40.26 for JFE, Nippon, and Kobe. If these preliminary results are adopted in our final results of this review, the Department will instruct CBP to assess antidumping duties on all appropriate entries. The Department intends to issue appropriate assessment instructions directly to CBP 15 days after the date of publication of the final results of this review.”

The United States Steel Corporation as petitioner requested administrative reviews of JFE Steel Corporation, Nippon Steel Corporation, and Kobe Steel Ltd.

This review covers exports of subject merchandise to the United States during the period June 1st 2007 through May 31st 2008.

Scrap prices weaken at Rotterdam

- 09 Mar 2009

It is reported that steel scrap prices of European origin FOB Rotterdam weakened by USD 5 per tonne last week.

27-Feb6-MarChange
160-170155-165-5

In USD per tonne
FOB Rotterdam

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.

(Sourced from www.steelprices-europe.com)

Chinese coke export price remains at artificial levels

- 09 Mar 2009

Latest CCCMC reference prices for coke exports as on March 03rd 2009, based on the average reference prices for coke export transactions concluded in the previous week, stood at USD 440 per tonne to USD 450 per tonne on FOB basis.

Issuance Date HighLow
2009.03.03450440
2009.02.17450440
2009.02.10450440
2009.02.03450430
2009.01.20450400
2009.01.13430350
2009.01.06430350
2008.12.30400350
2008.12.23400320
2008.12.16380330
2008.12.09380330
2008.12.02400350

In USD per tonne
On FOB china basis

The China Chamber of Commerce of Metals, Minerals and Chemicals Importers and Exporters is the largest trading association in China. The CCCMC reference prices are average prices for coke export transactions concluded the week prior to issuance date of such reference prices.

US ITC to conduct sunset review on pre stressed concrete steel

- 09 Mar 2009

The US International Trade Commission voted to conduct full five year sunset reviews concerning the countervailing duty order on pre stressed concrete steel wire strand from India and the antidumping duty orders on this product from Brazil, India, Japan, Korea, Mexico, and Thailand.

As a result of this vote, US ITC will conduct full reviews to determine whether revocation of these orders would be likely to lead to continuation or recurrence of material injury within a reasonably foreseeable time.

The Uruguay Round Agreements Act requires the Department of Commerce to revoke an antidumping or countervailing duty order, or terminate a suspension agreement, after five years unless the Department of Commerce and the ITC determine that revoking the order or terminating the suspension agreement would be likely to lead to continuation or recurrence of dumping or subsidies (Commerce) and of material injury (ITC) within a reasonably foreseeable time.

The Commission's notice of institution in five-year reviews requests that interested parties file with the Commission responses that discuss the likely effects of revoking the order under review and provide other pertinent information. Generally within 95 days from institution, the Commission will determine whether the responses it has received reflect an adequate or inadequate level of interest in a full review. If responses to the ITC's notice of institution are adequate, or if other circumstances warrant a full review, the Commission conducts a full review, which includes a public hearing and issuance of questionnaires.

With respect to Mexico, all six Commissioners found that both the domestic and respondent group responses were adequate and voted for full reviews. With respect to India, Japan, Brazil, and Thailand, all six Commissioners found that the domestic group response was adequate and the respondent group response were inadequate, but that circumstances warranted full reviews. With respect to Korea, Chairman Shara L. Aranoff, Vice Chairman Danial R. Pearson, and Commissioners Deanna Tanner Okun and Irving A. Williamson found that both the domestic and respondent group responses were adequate and voted for full reviews; Commissioners Charlotte R. Lane and Dean A. Pinkert found that the domestic group response was adequate and the respondent group responses were inadequate, but that circumstances warranted full reviews.

EBRD to take stake in private Mongolian coking coal mine

- 09 Mar 2009

Finchannel reported that EBRD is taking an equity stake in a privately held Mongolian mining operation, in an investment that will strengthen the role of the private sector in this crucial industry, boost competition and set a new benchmark in environmental and health and safety standards.

According to EBRD, the investment of up to EUR 30 million in Energy Resources LLC will support the production of high quality coking coal from the Ukhaa Hudag deposit in southern Mongolia, some 200 kilometers north of the border with China, a major importer of Mongolian coal.

EBRD's backing for project will also help to bring sustainable economic growth to this region at the foot of the Gobi desert, stimulating new enterprise in an otherwise depressed area.

Energy Resources is an entirely Mongolian consortium, comprising three large domestic groups. This project, at a mine which has a future expected production life of over 100 years will allow ER to compete with the Mongolian state mining industry and with larger foreign investors.

By working initially with one of the world’s foremost international contract mining operators, ER will also ensure that the mine is operated according to the highest industrial standards. EBRD’s investment also reflects the company’s commitment to high governance and transparency as well as environmental and health and safety standards.

Mr John Chomel Doe director of EBRD said that “The EBRD is particularly proud to be associated with this project that will raise standards in the Mongolian mining industry, support the growth of the private sector and bring a new spirit of economic dynamism to this region.”

Mr J Odjargal chairman of Energy Resources said that “ER is very pleased that EBRD is joining the UHG project that would create 450 jobs immediately, especially during these times of crises when business opportunities are limited and the country’s foreign currency reserves are scarce.”

While developing the main mining project, Energy Resources will also work with the EBRD’s TurnAround Management and Business Advisory Services Programs that help enterprises adapt to the demands of a market economy. The TAM/BAS projects will support economic development in the Gobi region by helping small businesses expand and so support the long term development of the region.

The EBRD started investing in Mongolia in October 2006 and has made provision of finance to the support the mining and mining services sector a priority. However, its total investments to date of around USD 120 million have stretched across a wide range of sectors also including the financial, the retail and the beverages industries.

(Sourced from www.finchannel.com)

SHFE steel futures not to start today

- 09 Mar 2009

It is reported that Shanghai Futures Exchange denied rumors of Steel futures trading will be launched on March 9th and further clarified that steel futures trading will never be put off since its launch date has never settled.

Days before, an insider from Ma steel disclosed that they got the notification from SHFE that steel futures trading may be postponed for about half month in the view of evading time clash with "The Two Sessions”. In fact, major steelmakers' indifference throws a big wet blanket on steel futures trading, and the bourse is trying their best on persuading these steel elephants.

SHFE said that they haven't got the exact information about the steel futures' IPO time from China Securities Regulatory Commission. CSRC will approve the steel futures trading as soon as all the procedures and preparations are done.

An official of SHFE said since the time to market is still unascertained; there is no so-called "Launch Postpone" and the reason like "time crash with 'The Two Sessions "

(Sourced from.Mysteel.net)
Visit www.Mysteel.net for real time access to China steel news!

Ukrainian finished steel down by 34%YoY in 2 months

- 09 Mar 2009

Ukrainian Journal quoted the Industrial Policy Ministry said Ukraine's steel industry reduced finished roll output 34%YoY in January to February to 4.016 million tonnes.

As per report, Crude steel production plummeted 38% to 4.44 million tonnes and pig iron fell 35% to 3.838 million tonnes.

The country produced 216,000 tonnes of steel pipes, down 42%YoY. Iron ore concentrate production fell 32% to 7.07 million tonnes; prepared iron ore fell 29% to 8.282 million tonnes, including pellets down by 22% to 2.813 million tons and sinter ore down by 33% to 5.47 million tons; and crude iron ore down by 32% to 8.813 million tonnes.

(Sourced from Ukrainian Journal)

BDI closes last week on positive note

- 09 Mar 2009

It is reported that on March 6th 2009, Baltic Dry Index reached 2225 points up by 58 points as compared to March 5th 2009.

Capsize

BCIChange
INDEX2,8399
SPOT 4 TCE AVG28,48583
March 5th28,402
Year Ago135,407

All except INDEX in USD
Change is with respect to March 5th 2009 numbers

Panamax
BPI Change
INDEX2,230134
SPOT 4 TCE AVG17,8661,073
March 5th16,793
Year Ago62,239

All except INDEX in USD
Change is with respect to March 5th 2009 numbers

Supramax
BSI Change
INDEX1,68835
SPOT 4 TCE AVG17,653367
March 5th17,286
Year Ago52,542

All except INDEX in USD
Change is with respect to March 5th 2009 numbers

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)

Monday Market Monitor - Middle East (WEEK 10) - Slide continues

- 09 Mar 2009

The Middle East Steel Price Index remained stable except for minor dip of 23 points. The propeller for this slide was cheaper offers of rebars from Ukrainian mills resulting in dip of 33 points in Middle East Long Product Price Index MLPPI.

Class26-Feb05-MarChange
MLPPI40233990-33
MFPPI567356730
MEASPI45234500-23

MLPPI - Middle East Long Product Price Index
MFPPI - Middle East Flat Product Price Index
MEASPI - Middle East Steel Price Index

Long products
Category26-Feb05-MarChange
PI - Rebar34433361-82
PI - WRC412641260
PI - Angle480748070
PI - Structural494149410
PI - HEA551855180


Flat Products
Category26-Feb05-MarChange
PI - Narrow Plates561756170
PI - Wide Plates788578850
PI - Hot Rolled430743070
PI - Cold Rolled486048590
PI - Galvanized535353530


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

Trend for rebars

Rebars
BS4449 Grade 460B
LocationCURChangeUSD%
DubaiAED-50-14-2.6%
DammamSAR-50-13-2.6%
BahrainBDR-5-14-2.4%
KuwaitKDW-6-23-3.8%
QatarQAR000.0%
JeddahSAR-50-13-2.6%

Change is on March 5th 2009 as compared to February 26th 2009
Change is per tonne

Turkish steel mills, which are the major supplier to MEA, maintained their FOB offer levels except for billets.
ProductGradeSize mmChange
BilletsSAE 1008125 x 125-30
RebarsBSt5008 to 320
Wire RodSAE 10085,5 to 160

Change is on March 5th 2009 as compared to February 26th 2009
In USD per tonne

But with the onslaught of Ukrainian and Russian sellers, Turkish mills are bound to lower their offers in this week.

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

(Sourced from www.steelprices-middleeast.com)

First thermal coal supply agreement signed in China

- 09 Mar 2009

According to an insider from a coal enterprise a power plant under the China Resources Power Holdings Company Limited has signed a 4 vessels' coal agreement with the supplier China Shenhua Group.

He said the price was set at CNY 540 per tonne for the product of 5500 kilocalorie per kilogram.

This is the first supply-demand agreement singed since last year when the two sides failed to reach any deal at the annual coal ordering meeting, symbolizing the power plants' negotiation ally has started to shake.

The plant's action immediately received wide criticism from other power plants. A senior official from CR Power also noted yesterday that the group seriously condemn and would strictly investigate the action. He said the agreement hasn't been approved by the Fuel Department of the Group yet. He said the plant is likely to be the one in Jiangsu province, where is close to the high-electricity-demand city of Shanghai. The electricity price in the province is higher than others so they are probably able to afford the higher coal price.

The official also said the company would question the responsibility of the person related after the full investigation. It is said that the offering price of Shenhua Group witness no change since the 2009 Annual Coal Ordering Meeting that held in Fuzhou last year, posting at 540 per tonne.

(Sourced from.Mysteel.net)
Visit www.Mysteel.net for real time access to China steel news!

Downsizing deals - Severstal schedules meetings with workers

- 09 Mar 2009

wtov9 reported that Severstal Steel has scheduled meetings for next week with both salary and union workers from the Steubenville-Mingo Plants and the Follansbee Coke Plant.

The first of four meetings is scheduled for 8:30 AM Monday at The McLure in Wheeling. Details of what will be discussed at the meetings haven’t been released, but sources have told NEWS9 it’s likely the company may release more information about the expected idling of the Electric Arc Furnace.

In January, the union was informed that the EAF would temporarily shut down in early March. Officials said poor steel market conditions are to blame, and the idle will last until those conditions improve.

(Sourced from wtov9)

February steel import license applications into EU down by 7% MoM

- 09 Mar 2009

According to European Commission data obtained by Platts, global applications filed in February to import steel products into the EU 27 slipped by 7% MoM as compared with January 2009 at 1.70 million tonnes, with China's filings decreasing by 12% MoM to 216,000 tonnes.

Bucking the overall trend, hot rolled coil applications gained 27% MoM in February as compared with January and 4% YoY at 365,000 tonnes. Of note was a 172% surge in HRC applications from Russia. The country filed to export 119,000 tonnes into the EU 27, over twice as much as the next applicant India, on 53,000 tonnes. Turkey applied for 44,000 tonnes of HRC, while Chinese applications covered 43,000 tonnes.

Cold rolled coil applications were up by 3% MoM in February but down by 22% YoY at 156,000 tonnes. Again Russian applications jumped, at 60,000 tonnes, 260% MoM more than in January. Turkey applied for 26% more CRC exports to Europe at 33,000 tonnes, while Chinese applications fell 41% to 22,000 tonnes. A spike in Ukrainian applications recorded in January subsided in February when applications fell back to 8,000 tonnes from 45,000 tonnes the previous month.

Quarto plate applications were almost flat, increasing just 1% MoM at 117,000 tonnes. China remained the largest applicant, with 46,000 tonnes covered, but filings were down by 20% MoM. Russia applied to sell 25,000 tonnes of plate into the EU 27, down by 33% MoM from January figures. A noteworthy trend is the return of Brazil as source of European imports as the country filed for 21,000 tonnes, placing it third.

Turkish rebar import applications normalized in February after a spike in January. They fell 52% MoM to 50,000 tonnes, a level seen as normal when compared with 2008 data. In January, Turkey had applied for 104,000 tonnes of sales to Europe. Despite the drop in Turkish filings, total rebar applications worldwide increased by 6% MoM to 157,000 tonnes, helped by a 43% jump in Norwegian applications, which reached 43,000 tonnes.

(Sourced from www.platts.com)

Straits Asia to double coal output

- 09 Mar 2009

Reuters reported that Singapore listed Straits Asia Resources aims to more than double its annual coal production to 20 million tonnes by 2012 and may acquire two Indonesian coal mines to achieve that target.

Mr Richard Ong CEO of Straits Asia the company will start by boosting its production to 9.5 million tonnes this year from 8.6 million last year.

He said that "I think the plan for this company is to bring to 20 million in three years. We are not stopping to look into acquisitions we may want to select one or two. Those acquisitions will be of Indonesian assets.”

Straits Asia's shares rose as much as 3.2% in late trade on last Friday, outperforming a 0.7% fall in the benchmark Singapore index. Commodities firm Noble Group and Indonesian coal miner PT Indika Energy Tbk are among the companies also pursuing a bid for Straits Asia itself, sources told Reuters in January, in a deal that could be worth more than USD 800 million.

Mr Ong declined to comment on bids for the firm, saying it was up to its parent firm, Australian miner Straits Resources Limited that owns 47.1% of the company. He said that Straits Asia controls 100% of Indonesian mining service company PT Indo Straits, which it aims to spin off and either sell part or its entire stake through an initial public offering by the end of 2009. The company has not decided the size of the stake in Indo Straits that it wants to sell during the offering or the amount it aims to rise.

Straits Asia said that it was difficult to give an outlook for coal prices since supplies were likely to fall along with demand, as some producers faced difficulties in getting financing.

Mr Ong said that the firm would fund its expansion with cash. The company has nearly USD 100 million in cash or equivalent and a USD 300 million refinancing facility obtained from Standard Chartered in November, according to its 2008 financial statement. The firm posted over a 300% rise in both Q4 and 2008 net profits.

Straits Asia, with a market cap of USD 548.6 million has two coal mines in Indonesia's coal rich East Kalimantan province and exports most of its output to power plants in Japan, Korea, Taiwan and India. In terms of size, it is similar to Indonesia's eighth largest coal producer PT Bayan Resources, which also plans to produce 9.5 million tonnes of coal this year.

(Sourced from Reuters)

Rebar and WRC prices crash by USD 50 at Black Sea last week

- 09 Mar 2009

It is reported that the price of rebars and wire rods at Black Sea came under tremendous pressure last week and saw a major decline.

ItemGradeSizeChange%
RebarsA300C-A500C12-32 mm-50-12%
Wire rodsmesh5.5-6.5 mm-40-10%

Change is on March 6th as compared with February 27th 2009
Change is in USD per tonne
Delivery FOB ST Black sea

To know exact prevailing FOB prices at Black Sea, China, India, Turkey and Europe, as they change, subscribe to services of www.steelprices-india.com by registering or sending a mail to admin@steelprices-india.com with contact details. Please note that this is a paid service.

(Sourced from www.steelprices-india.com)

Venezuela to build 1.5 million tonne steel plant

- 09 Mar 2009

AP quoted Mr Hugo Chavez President of Venezuela as saying that it will help build a new USD 2.1 billion steel plant in southeastern Bolivar state. He visited the building site as heavy machinery began moving earth for the new plant. Brazilian investors also are participating in the project.

Mr Rodolfo Sanz mining minister said that the steel plant's construction will generate 7,000 jobs and more than 1,500 jobs once the plant is operating. The government estimated it will produce about 1.5 million metric tons of liquid steel per year.

Mr Chavez's government last year also nationalized the country's largest steel maker Sidor. Since then Venezuelan authorities have been locked in negotiations over compensation with Ternium SA, a subsidiary of the Argentine Italian conglomerate Techint, which owned a 60% stake in Sidor.

Chinese plate export prices remain weak

- 09 Mar 2009

It is reported that both export offer and domestic price for Chinese steel plate have kept weak and there have been less transaction.

On Shanghai market, commercial 16mm plate by Yingkou steel goes at CNY 3400 per tonne down by CNY200 per tonne from last Friday. That for commodity grade 14mm to 16mm plate by tier two steel producers has dropped by about CNY 200 per tonne to CNY 3250 per tonne.

CCSB 16mm ship plate price drop by CNY 50 per tonne to CNY 3800 per tonne. Q245R16 boiler plate price are down by CNY70 per tonne to CNY 4130 per tonne.

Offers for commodity grade plate by tier two steel makers has tumbled to USD 530 per tonne FOB and low level is at about USD 495 per tonne to USD 500 per tonne FOB. Exporters say overseas buyers are bidding at a so low a level that is totally not workable. European trader is even asking USD 450 per tonne to USD 460 per tonne FOB for commercial plate. It is really a pity that there is no chance."

Ship plate prices prevailing price for grade a material goes at USD 640 per tonne to USD 650 per tonne FOB and that for lower grade is at USD 620 per tonne to USD 630 per tonne lower. Transaction level is between USD 610 per tonne to USD 620 per tonne FOB. Most steel makers and traders tell Mysteel that there is even less export volume than that of commodity grade one.

(Sourced from.Mysteel.net)
Visit www.Mysteel.net for real time access to China steel news

Foundation stone laid for Seyyanoor stainless steel plant

- 09 Mar 2009

It is reported that Mr P Chidambaram home minister of India has laid the foundation for Sundareshwarar Alloy & Stainless Steel Limited at Seyyanoor on March 8th 2009.

Mr M Rajarathinam president of Seyyanoor District Congress Committee said that the project was being promoted by NRIs from Hong Kong and ASEAN countries.

The plant would have a capacity to produce 300,000 tonnes of alloy steel in a year. The cost of the project was INR 684 crore. Implementation would be over in 18 months from the date of the financial closure.

(Sourced from www.hindu.com)

PT Indo Tambangraya profit up four fold

- 09 Mar 2009

Reuters reported that Indonesian coal miner PT Indo Tambangraya Megah Tbk has more than four fold jump in its 2008 net profit driven by higher coal prices.

The company, which is a unit of Thailand's Banpu PCL, said in a statement that net profit last year was USD 234.93 million against USD 55.79 million a year earlier. Its revenue rose 71% to USD 1.32 billion from USD 771.82 million in 2007.

Indo Tambangraya owns shares in several Indonesian coal miners including PT Trubaindo Coal Mining, PT Indominco Mandiri, PT Kitadin, PT Jorong Barutama Greston and PT Bharinto Ekatama.

The company did not give details on sales volume. But Banpu said that it sold 18.5 million tonnes of coal in 2008 with about 95% or 17.7 million tonnes of coal sales from its Indonesian mines.

Indo Tambangraya previously said that it planned to spend USD 200 million this year to finance development projects.

(Sourced from Reuters)

Vietnamese domestic steel price on downward trend

- 09 Mar 2009

Vietnam's ministry of industry & trade said that in the domestic market, a fall in lending rates helped enterprises speed up the progress of construction works, so the sales of steel in February increased to 270,000 tonnes while steel makers' stockpiled volume was about 230,000 tonnes. In addition, the volume of inventory steel billet of Vietnam was reduced to 350,000 tonnes only.

The current price of steel billet on the world market is common at USD 400 to USD 430 per tonne CFR, while Asia's price of hot rolled steel stands at USD 580 per tonne because steel manufacturers such as POSCO and Nippon Steel cut down production output.

In Vietnam, pursuant to the prime minister's Decision No 16/2009/QD-TTg dated January 21st 2009, VAT on steel was lowered to 5% whereby February's domestic steel price declined by VND 500,000 per tonne as compared with January.

It may be noted that product price of Thai Nguyen Cast Iron & Steel Co is VND 10.6 million per tonne while that of Southern Steel Co is VND 11.2 million a tonne.

(Sourced from www.intellasia.net)

Production pruning - Maanshan cuts output by 10%

- 09 Mar 2009

Business24 citing Mr Gu Jianguo Chairman of Maanshan Iron and Steel Co as saying that, his company extended losses from the last quarter of 2008 into the first two months of this year.

Mr Gu said Maanshan is operating at 10% less than its 15 million tonnes annual capacity as steel prices fell since February 6 after a three-month rebound.

That compares with cuts as deep as 30% in the fourth quarter, said the head of the Anhui province-based company.

China announced a CNY 4 trillion package to support its sagging economy, and will build infrastructure including railways and ports.

Baosteel, the country's largest maker, said steel prices are close to its production costs, indicating the country has not seen "real" demand recovery.

(Sourced from Business24)

Falling iron ore prices may propel dry bulk shippers

- 09 Mar 2009

Reuters reported that dry bulk shipping companies get a large chunk of their revenue by carrying iron ore across the oceans and with prices of the raw material set to see a steep fall this year, industry observers are divided if it would provide succor to a recession battered dry bulk sector.

Mr Scott Burk analyst of Oppenheimer & Company said that a drop in the contracted price for iron ore will help dry bulk shippers in two ways. He said that “First of all, lower prices could potentially lead to higher demand for iron ore imports from China from longer sources as opposed to India. Secondly, a bigger spread between higher spot iron ore prices in India and China and lower contract prices in Brazil gives the steel mills in China more potential margin to ship the cargo across the ocean.”

Mr Omar Nokta analyst of Dahlman Rose who believes a fall in iron ore prices will be beneficial for the dry bulk industry said that "What's happened over the last six months is that the steel mills have been operating just above or just at cost. So there's really not much that they can do. They are out there paying as little as possible for freight. Once margins expand they should be able to buy more and pay a higher rate.

Ms Natasha Boyden MD of Cantor Fitzgerald said that "Why would they want to pay the shippers more. The steel production in China is down. Although we have the Chinese stimulus plan, clearly all sorts of demand for construction are also down. The potential decline in iron ore pricing could be fallout of the dramatic fall in steel production year over year. The fall in demand for the commodity is going to clearly have an impact on the demand for ships.”


Mr Gregory Lewis analyst of Credit Suisse said that "If we think that demand is being hindered by high prices then lower iron ore prices will be considered a good thing for the dry bulk shippers. If, however, the decline in iron ore prices is a result of simply the fact that there is lower demand then that's a negative for shippers. However, everyone agrees that an early resolution to price negotiations between iron ore miners and steel companies will be a positive to the dry bulk shippers as it will lead to increased shipments. Australian iron ore miners BHP Billiton and Rio Tinto are most likely to be the price setters this season, which begins in April. What is going to help the dry bulk industry the most will be an increase in volumes."

According to Reuters data, Freight rates for dry bulk ships have plummeted 90% from the highs hit during the commodities bull run last year. Freight rates for capsize vessels the largest class of vessel that ferry iron ore, coal and grains on the key route between Brazil and China have fallen to USD 21 a tonne, down from above USD 100 a tonne in June last year.

(Sourced from Reuters)

Readymade information to help you expand your reach in India

- 09 Mar 2009

Last 8 months have spelt doom for almost all walks of life, more so for booming steel and consuming sectors in India. Now every company is taking various measures to remain afloat at these trying times and emerge as winner later

In addition to realigning business processes and improving efficiency to reduce costs, one can try to expand business by reaching out to more clients.

But Indian industry is by and far highly defragmented and thus it is quite difficult and time consuming to reach smaller players. Therefore SteelGuru has made an effort over last 12 months to collect the contact details of various segments and has published several directories.

The directories contain only the following details
1. Name
2. Address
3. Phone No
4. Fax No (Wherever available)
5. E Mail (Wherever available)
6. URL (Wherever available)
They are delivered in PDF format through e mail

The list of such directories is as under

SlNameMonthUSDEntriesE mails
1Indian Steel Makers8-Feb1250723446
2Stainless Steel Manufacturers in India8-Mar3505555
3Electrical Steel Users in India8-May800431300
4Tin Plate Users in India8-May62514790
5Autopart Manufacturers in India8-May625431403
6Cement Manufacturers in India8-Aug200186157
7Machine Tool Manufacturers in India8-Aug600389381
8Transport Companies in India8-Aug350176130
9Refractory Manufacturers in India8-Aug3507468
10Tube and Pipe makers in India8-Aug350208129
11Overseas Scrap Suppliers to India8-Sep50011911074
12Indian Marine Industry8-Oct1504935
13Forging Industry in India8-Oct35012182
14Indian Galvanizers8-Nov350203150
15Induction Furnace based steelmakers8-Nov300399283
16Indian Ferroalloy Producers8-Nov2506060
17Alloy steel Manufacturers in India8-Dec2505650
18Wire Drawing Manufacturers in India9-Jan2007059
19Mining Industry in India9-Jan350162141
20Steel Pipe Makers in China16-Dec50012081193
21Fastners Units in India25-Jan250274157
22Re-Rolling Industry in India29-Jan300825113
23Construction Companies in India8 Aug9501000749
24White and Yellow Goods2-Jan15010746
25Stainless steel supply Chain in China8-Jul800246246


Pl visit http://www.steelguru.com/reports/list.html or send a mail to reports@steelguru.com for further information

Slowdown signs - Taiwanese coal imports dips by 25% YoY

- 09 Mar 2009

China post reported that Taiwan, which imports all of its coal, reduced purchases for a third month in January as the recession cut demand from steel and petrochemical makers.

The Bureau of Energy said that shipments slumped 25% from a year earlier to 3.96 million tonnes in January. Consumption plunged 22% to 4.2 million tonnes in the month.

Coal accounts for about a third of Taiwan's energy supplies and is also used in steel making.

The island's economy shrank 8.36% in the Q4 as exports and business investment slumped, sending the island into its first recession since 2001. According to a stock exchange filing, China Steel Corporation reported a 49% decline in January sales. Formosa Plastics Corporation, the island's largest manufacturer of polyvinyl chloride used to make pipes and synthetic leather, posted a 50% drop in January revenue.

(Sourced from www.chinapost.com)

Production pruning - Venezuelan briquette makers at 40%

- 09 Mar 2009

BNamericas quoted Mr Omar Martínez president of Venezuela's steel industry association Aces as saying that Venezuelan briquette manufacturers are operating at less than 40% of their capacity. He added that "The companies were shut down for two months in late 2008. Operations have started again but with very low production."

Mr Martínez said that boat traffic on the Orinoco River has fallen along with declining activity, adding that just one year ago there was a constant flow of ships at anchor waiting to be loaded with briquettes and iron ore. He added that "The situation is still delicate because when consumption dropped and steel prices fell around the world, these companies had to cut work shifts."

Briquette producers that operate in Venezuela's Guayana region include Matesi, Venprecar, Orinoco Iron, Comsigua and Opco.
(Sourced from www.bnamericas.com)

Chinese auto majors may go for joint purchase of steel

- 09 Mar 2009

According to insiders five China's auto makers namely, JAC, Geely, GWM, FAW Haima Motors and Lifan Motors are inclined to jointly purchase car making steel and wheels, they have reached this intention at a meeting in Beijing recently.

If the plan bears out, it will be the first time that home auto makers cooperate in the purchase chain. It is just an initial project now.

Insiders said it is just an initial project now and there are still lots of work to do. But the five enterprises regard this project with full prospect which would be successfully operated.

Amid financial crisis, domestic motors firms shoulder heavier and heavier pressure of liquidity and cost, and even a finance crunch happens in some enterprises. Therefore, auto makers hope to reduce producing cost and enhance competitive ability through cooperative buying way.

Mr Dong Jianping Deputy Secretary General of China Association of Automobile Manufacturers said it is positive for home car makers to jointly purchase steel and wheels. Cooperative buying will promote their pricing capability and achieve lower purchase price.

Mr Dong Jianping Analyzed that "Different from Japanese cars and Germany cars using various plates that would be hardly to purchase, most of China's motors are small-displacement vehicles which use similar plates and wheels, so cooperative buying can be realized."

Strategic-buyer game is worth to popularize in the auto industries.

In Mr Stephenson Klaus eye, Volkswagen senior manager in China, the strategic buyer method will help car makers maintain competitive power in the market and will also improve suppliers' manufacturing strength and efficiency.

If the joint buying carries out, it will force auto enterprises to integrate and perfect supply system at length.

(Source: China Auto News)

CR prices crash by 13% at Black Sea last week

- 09 Mar 2009

It is reported that the price of CRC at Black Sea came under tremendous pressure this week and saw a major decline.

CRC
0.5mm to 1.5 mm

OriginChange%
Ukrainian-40-9%
Russian-60-13%

Change is on March 6th as compared with February 27th 2009
Change is in USD per tonne
Delivery FOB ST Black sea

Russian origin CR price levels, which have always been higher that that of Ukrainian origin, are now reported to be at par with Ukrainian levels.

To know exact prevailing FOB prices at Black Sea, China, India, Turkey and Europe, as they change, subscribe to services of www.steelprices-india.com by registering or sending a mail to admin@steelprices-india.com with contact details. Please note that this is a paid service.

(Sourced from www.steelprices-india.com)

Egyptian steel producers demand duties on rebar import

- 09 Mar 2009

Arab Steel reported that Egyptian iron and steel producing companies have reduced, for the second time, the rebars prices as from March 2009. Ezz Steel has announced cutting their prices down to EGP 3050 per tonnes ex-works. This price is lower by EGP 350 than the level of prices of February, which amounted to EGP 3400 per tonnes. The other producers in Egypt reduced their prices at approximate levels.

This reduction is in response to the decline of the inputs of the iron and steel industry worldwide, according to Ezz Steel, but it also occurs as a result of the impact of the growing competition in the domestic market the intensity of which has increased by the low prices of the steel imported from a number of the exporting countries to the Egyptian market headed by Turkey whose rebars prices to the Egyptian market reached EGP 2900 per tonnes.

The Turkish exports to the Egyptian market account for about 35% of the total Turkish exports to the countries of the Middle East and North Africa during January 2009. The local producers are afraid of the possibility that the continuation of exports in this way would cause a real injury to the local mills due to their inability to match the low prices of the imported products.

The increasing imports of rebars and their low prices led the local producers to demand taking protective measures against the imported steel. President of the Metallic Industries Association in Egypt submitted an official memorandum two days ago to the Ministry of Industry and Trade asking them to impose preventive duties on the imported steel.

(Sourced from Arab Steel)

Merafe sees raw chrome export from SA worsening

- 09 Mar 2009

It is reported that the unbridled and suicidal export of raw chromite ore from South Africa is worsening in terms of the volumes of raw chromite ore that are being exported from South Africa to China.

Mr Steve Phiri CEO of Merafe said that no progress has been made to amend the Minerals & Petroleum Resources Development Act to give the minister the powers to promulgate the regulations in order to determine the levels of ferrochrome beneficiation, which would at least help to limit the export of chrome ore.

He added that "There is a delay, and, from a legislative point of view, things are still where they were at the outset."

In the interim, Mr Phiri said that the situation had worsened and that even greater volumes of raw chromite ore were being exported from South Africa to China. He added that "We see more and more people getting into the chrome ore industry, and showing no signs of becoming integrated producers that beneficiate raw chromite ore into ferrochrome. The trade in raw chromite ore has become a major industry. It is a concern to the industry, but it would seem that it is going to be a phenomenon that is going to live with us."

The export of raw chrome ore is against the spirit of the beneficiation stance that government has taken. It is now nearly two years since the South African government promised to put a cap on raw ore exportation.

(Sourced from www.miningweekly.com)

SA competition body approved Richards Bay Minerals venture

- 09 Mar 2009

Mining Weekly reported that South Africa’s Competition Commission has recommended that the Competition Tribunal approve the restructuring of interests Rio Tinto and BHP Billiton’s Richards Bay Minerals venture.

The shuffle of interests came about so as to facilitate the introduction of black economic-empowerment shareholders. Previously RBM was a 50:50 joint venture between the two diversified mining giants.

As part of restructuring, it was understood that Rio Tinto and BHP Billiton would incorporate two South African empowerment holding companies, namely Tisand Holdco and Richards Bay Iron and Titanium Holdco.

Upon implementation of the restructuring, BHP Billiton and Rio Tinto would have joint control in Richards Bay Mining and Richards Bay Titanium. The matter would be heard at the Competition Tribunal on March 11th 2009.

In December, the two companies announced the final signing of agreements for its 26% broad based BEE deal, worth some ZAR 4.5 billion a deal representing one of KwaZulu Natal’s largest transactions to date. When entering into the empowerment transaction, Rio Tinto and BHP Billiton entered into agreements to restructure the JV, while maintaining their respective interests in RBM.

The miners agreed that Rio Tinto would give BHP Billiton a put option over BHP Billiton's 37% stake in the restructured RBM, calculated on a fair market of RBM at the time of exercise. At the time, Rio Tinto said that BHP Billiton’s interest in RBM was valued at about ZAR 9 billion. This meant that Rio Tinto had first option to buy the 37% stake in RBM from BHP Billiton, should it wish to sell in the future.

(Sourced from www.miningweekly.com)

Annual Report on China's Steel Market in 2008 and the Outlook for 2009

- 09 Mar 2009

SteelHome publishes its 'Annual Report on China's Steel Market in 2008 and the Outlook for 2009’. The report includes 14 separate reports on World Steel Market, China Steel Market, China HRC/CRC Market, China Wire Rod/Rebar Market, China Plate Market, China Stainless Steel Market, China Seamless Steel Pipe Market, China Strip Market, China Plated/coated Coil Market, China Section Market, and China Iron Ore Market, China Coke Market, China Scrap Market, China Ferroalloy Market.

Table of Contents
I Analysis on sharp rise and sharp fall in 2008 China steel market

1 Massive hike in China steel market in H1, 2008
A. Snow storm affected steel supply
B. Power coal and coke supply shortage during Spring Festival
C. Massive rise in iron ore contracted price
D. Influences of Beijing Olympics
E. Prefab construction after Wenchuan earthquake drove up cold rolled products market
F. Continuous depreciation of US dollar, crazy hike in commodity price and spreading inflation all over the world
G. World steel price surged
In spite of the tightened money policy the government implemented, inflation pressure still mounted, which cushioned the contradiction of the glut.

2 China steel price plummeted from the 3rd quarter.
A. China economy grew slower in the 3rd quarter.
B. Continuously tightening money policy exerted great pressure on capital flow.
C. International commodity price dropped with the depreciation of USD
D. Financial crisis blew heavily on market psychology.

3 China crude steel supply forecast
A. According to current market situations and production cutbacks amid many steel mills, SteelHome revised its formal prediction of 520-530 million tons of 2008 crude steel production to about 510 million tons, up 4.2% or 20 million tons year on year.
B. SteelHome assumes China steel products exports of 2008 at 57.50 million tons, down 8.2% or 5.15 million tons year on year

II China steel market anticipation for 2009

1 SteelHome assumes 540 million tons of China crude steel output in 2009.
A. Market price will further curb the growth of steel production
B. Coke supply continue to curb steel production
C. The investment in China steel industry will maintain low.
D. Flats production will stay high, and glut will not change.
E. The utilization of steel capacity stay high.

2 Financial crisis hinder China steel exports
A. World economy grow slower and steel demand dims
B. China steel exports will be improved with the resolve of financial crisis.

3 Steel demand in China home markets will sustain stable rise, but the growth rate will drop from 2008.

A. Advantages—Comprehensive national power is strengthened
B. Disadvantages—Domestic demand takes up small proportion of GDP.
C. Expectation for 2009 China Economic Growth
D. Little headroom for FAI rise.
E. Export rise slows down further.
F. Consumption grow slower.
G. Analysis on Downstream Sectors. In 2008, some steel-consuming industries are also on downward slope.
H. Steel consumption rise forecast in China home market in 2009

4 China steel market forecast for 2009

List of Tables:
1 Average Price Change in China 28 Major Cities (in yuan per ton)
2 Backward Capacity Elimination in China Steel Industry
3 IMF Outlook on World Economic Growth
4 China Crude Steel Net Export Scenarios
5 Crude Steel Demand and GDP
6 Crude Steel Demand and FAI
7 Economic Gauges in 1997-2008

To know more about the report please gets in touch with reports@steelguru.com

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