Eurobench.com

voda 27 februari 2015 17:01

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India imports 2.9 million tonnes steel from China in Apr-Jan

The government said that as much as 2.9 million tonnes of steel was imported from China in the first 10 months of the current fiscal, as against 8.1 million tonnes of total inward shipments of the metal.

Mr Vishnu Deo Sai, Minister of State for Steel and Mines said that "As against imports of about 8.1 million tonnes of steel to India, during April 2014 to January, 2015 about 2.9 million tonnes has been from China."

Mr Sai said that the global steel industry is going through difficult times, likewise, the domestic steel sector has also been subdued.

Due to excess capacity/production and decrease in demand in China, the minister said that steel from China has been finding its way to countries, including India.

He said that domestic steel manufacturers and other stakeholders have been representing against the Chinese imports.

He added that "Steel is a deregulated sector. However to ensure that only quality of steel is imported in to India, Ministry of Steel has notified steel and steel product (Quality Control) order on March 12th 2012, as last amended on December 4th 2014."

Source - PTI

voda 27 februari 2015 17:02

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Budget Update - Freight rates hiked for steel, iron ore and coal

Railway Minister Mr Suresh Prabhu has proposed hike in freight rates for select commodities wef April 1st 2015

Steel - 0.8%
Iron ore - 2.7%
Coal - 6.3%

Cement - 0.8%
Urea - 10%
Grains - 10%

In the wake of declining diesel prices, it was expected that freight rates would not be increased.

Source - Strategic Research Institute

voda 27 februari 2015 17:03

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ArcelorMittal readies feasibility report for Bellary steel plant in Karnataka

ArcelorMittal said that it has completed a draft feasibility report (DFR) for its proposed 6 million tonne per annum steel plant in Karnataka that entails an investment of a whopping USD 6.5 billion.

The company said that "A draft feasibility report for the contemplated steel plant has been completed and hydrological and environmental impact assessment studies have been initiated."

Billionaire Mr LN Mittal-led ArcelorMittal, the largest steel firm in the world, proposes to invest a whopping USD 6.5 billion in the Southern state for setting up a the 6 million tonne per annum steel plant and a 750 MW power plant for captive use.

The company has also received possession certificates for 2,659 acres of private land following acquisition of 1,827 acres and 832 acres in 2011 and 2012, respectively.

ArcelorMittal said that "This leaves a balance of 136.33 acres of land owned by Karnataka government, which is being processed for allocation and expected to be completed during the Q1 of 2015."

Source - PTI

voda 27 februari 2015 17:04

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WA's Pilbara region has broken record for largest single shipment of iron ore

ABC reported that the world's biggest bulk export port in Western Australia's Pilbara region has broken its record for the largest single shipment of iron ore.

According to the Pilbara Ports Authority, miner BHP Billiton loaded 263,989 tonnes onboard the Chinese vessel Abigail N at Port Hedland yesterday. The shipment broke the previous record, achieved by Fortescue Metals Group in December 2013, by 27 tonnes.

Mr Tim Treadgold, Resources analyst said that the record was significant for local industry. One, it does show that demand for iron ore in China remains strong, which is encouraging. Two, it shows the logistics side of the iron ore business is critically important, probably more important than the price you get because you have got to be able to shift the stuff to market.

Mr Tim said that "Three, it shows that there must have been a very high tide at Port Hedland because a ship that size a few years ago would not have even considered coming in and out of the port."

Mr Treadgold said that the shipment could also be continued evidence of China stockpiling the commodity while prices were at record lows. The Chinese certainly are enjoying being in a buyers' market, after being whacked by a sellers' market for the last four or five years.

However, the record falls short of some shipments coming from Brazilian competitor, Vale. Vale Max super iron ore carriers are carrying more than 400,000 tonnes of iron ore. So there is a logistics race on to get bigger, just as there is a race on to get iron ore costs smaller."

Source - ABC

voda 27 februari 2015 17:06

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Japan FY 2015 Steel consumption may be similar to FY 2014

Scrap Register reported that Japanese sources expect annual steel consumption in that country, in fiscal 2015, to be at a similar level to that recorded in the previous year.

Competition from overseas continues to pose problems but the depreciation of the yen against the US dollar is acting as a slight deterrent. Nevertheless, recent figures show that annual imports, in 2014, increased for the first time in three years.

Japanese origin scrap continued to be favoured by many due to its competitive price, aided by the depreciating yen, and its availability with a short delivery time.

With iron ore prices remaining low, many mills are being forced to either cut back production or attempt to close the gap between EAF and BOF raw material costs by submitting lower bids for scrap.

Source - Scrap Register

voda 27 februari 2015 17:06

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More than 130 jobs saved by steel firm deal

More than 130 jobs have been saved after a new buyer agreed to take over a financially troubled South Yorkshire steel firm.

Rotherham based MTL Group collapsed into administration earlier this month following the loss of a large overseas defence contract, resulting in the loss of 157 jobs.

It was feared the rest of the 146 strong workforce at the metal manufacturing specialist would also be made redundant if no new buyer could be found. But engineering and fabrication company WEC Group has now agreed a deal for an undisclosed sum to take on the business.

Officials said that the deal would save 135 jobs. MTL Group's sales director Mr Karl Stewart, finance director Mr Howard Kellett and operations director Mr Darren Bradley remain in the senior management team following the creation of the new partnership with WEC Group.

Mr Wayne Wild, commercial director of WEC Group, said that “We are delighted to have reached an agreement which will save the jobs of more than 130 workers in South Yorkshire. The restructuring deal we have completed will see us work in partnership with MTL Group's previous directors and shareholders to grow and develop the business for the benefit of customers and staff. We are looking forward to continuing to work with the current customer base whilst securing new orders.”

Mr John Sumpton, joint administrator of MTL Group and executive director at EY, said that “We are pleased to have secured this deal for MTL Group, which safeguards the future of 135 employees and represents a strong strategic fit for WEC Group. The support of the business' loyal customer base was critical in enabling the company to continue trading, attract strong interest from a number of parties and, ultimately, deliver a rescue deal. A going concern sale represents the best outcome for the company's creditors.”

Source - The Star

voda 27 februari 2015 17:07

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BHP blinks as casualties mount in iron ore war

Bloomberg reported that the first fractures are appearing in an escalating iron ore price war that is putting more producers out of business.

The biggest mining companies led by Rio Tinto, BHP Billiton and Vale have persisted with multibillion dollar expansion plans, citing still healthy earnings even in the wake of a price collapse. Now, for the first time, one of the big three has voiced concern they may have gone too far.

Mr Andrew Mackenzie CEO of BHP said that “I do fear that other competitors have an awful lot more capital waiting in the wings to invest in expanding. We do look to the future and see a degree of pressure downwards on iron ore prices.”

BHP, Rio and Vale have been squeezing smaller rivals in their quest for market share, while demand growth in China, the biggest consumer, slows. From Sierra Leone's jungle to Sweden's Lapland, abandoned mines are beginning to dot the global landscape.

Mr Seth Rosenfeld, an analyst at Jefferies International in London, said that “They wanted to make sure no one else entered the market and to maximise their own market share. They've now done that as they're expanding and no one else is.”

Having embarked on AUD 120 billion of spending on new projects since 2011, the biggest producers have so far refused to blink in the face of a worsening outlook.

Plans to expand giant rail, port and mine projects in Australia and Brazil are largely undisturbed, the producers content to see higher cost rivals go out of business before they rein back investment in their most profitable divisions.

Source - Bloomberg

voda 27 februari 2015 17:09

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Scunthorpe is about to celebrate 125 years of steelmaking

milestone, 125 years of steelmaking in Scunthorpe is about to be celebrated.

March 1890 saw the first steel made by furnaces in the town, and to mark next month's anniversary the Scunthorpe Telegraph is running a series of picture packed supplements over the coming weeks.

The first appears in the issue on sale from February 26th 2015. Be sure to snap up your copy and enjoy some golden memories of Scunthorpe's premier industry.

Source - Scunthorpe Telegraph

voda 27 februari 2015 17:10

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Steel business relocates facility from Belfast to Bromborough

A steel business has relocated from Belfast to Bromborough with the support of GBP 4 million combined loan and working capital facility.

Capital Reinforcing, which specialises in the cutting and bending of steel for the construction sector, has invested in a new 36,000 square feet head office and processing plant in Bromborough. This will enable the business to import raw material via the Mersey Ports and then deliver finished goods quickly to the rest of the UK mainland.

The new facility has created 20 new jobs, safeguarded 14 and will help the business to increase capacity from 25,000 tonnes of cut and bent steel per year to 40,000 tonnes. As well as improving efficiencies and reducing transport costs, turnover is forecast to double to GBP 24 million by the end of 2016.

Mr Dermot Owens, director at Capital Reinforcing, said that "We have developed a strong relationship with Barclays and have been extremely impressed by their sector focus, the proactivity and their willingness to lend. The relocation will significantly increase the capacity of the business and enable us to take on more significant projects in the future."

He said that "The development of the new site on Pool Lane is an excellent example of how access to the Mersey Ports are helping to attract businesses that are able to make use of the waterways as a means of transporting goods more efficiently and in a more carbon-friendly way."

Source - Insider Media

voda 27 februari 2015 17:11

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MMK increases steel shipments to shipbuilders in 2014

OJSC Magnitogorsk Iron and Steel Works supplied 78,000 tonnes of metal products to shipbuilders in 2014, which represents a 37.2% growth YoY.

MMK has a successful and long standing track record with the shipbuilding industry. The Company supplies up to half of all metal products sold to the Russian shipbuilding industry. Key customers of MMK include companies that are part of such groups as United Shipbuilding Corporation, Oka Shipyard and Red Barricades Shipbuilding Plant.

MMK production of steel for the shipbuilding industry has been expanded following the commissioning of the thick plate Mill 5000 in 2009. The thick plate mill can produce steel used in production for the Russian naval fleet, tankers, modern ice class vessels.

Mill 5000 steel for shipbuilding is certified by such organisations as Lloyd's Register, Bureau Veritas of France, the American Bureau of Shipping, Det Norske Veritas in Norway, Germanischer Lloyd and the Russian Maritime Register of Shipping.

Source - Strategic Research Institute

voda 27 februari 2015 17:12

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Vale's performance in 2014

2014 was a year of sound performance despite the challenges brought by declining commodity prices

In 2014 Vale SA achieved several production records, further reduced expenses by USD 1.218 billion, completed eight capital projects, reduced capital expenditures by another USD 2.254 billion, negotiated a key partnership for our coal operation in Mozambique and still paid USD 4.2 billion in dividends while preserving a healthy capital structure.

2014 was a year of sound performance despite the challenges brought by declining commodity prices

1. Annual production records in iron ore, copper and gold and the highest annual production in nickel since 2008:
-Iron ore supply of 331.6 million tonnes, including Vale sourced production record of 319.2 million tonnes, mainly due to the record production in Carajás of 119.7 million tonnes
- Nickel production of 275,000 tonnes, the highest annual production since 2008.
- Copper production record of 379,700 tonnes, with ramp-up in Salobo to 98,000 tonnes of production.
- Gold production record of 321,000 oz.

2. Record sales volumes of iron ore and pellets (313.6 million tonnes) and gold (351,000 oz), and the highest sales volume of nickel (272,000 tonnes) since 2008.

3. Reduction of USD 1.218 billion in expenses across all businesses in 2014.
- SG&A decreased by USD 234 million (21.1%).
- Pre-operating and stoppage expenses5 decreased significantly by USD 747 million (45.9% reduction) from USD 1.628 billion in 2013 down to USD 881 million in 2014

4. Adjusted EBITDA of USD 13.353 billion in 2014, a decrease of 40.8% from the USD 22.560 billion in 2013, mainly due to lower commodity prices which negatively impacted adjusted EBITDA by USD 10.580 billion in 2014.
- Base metals adjusted EBITDA totaled USD 2.521 billion in 2014, an increase of 53.8% when compared to 2013 with higher nickel prices and volumes of both copper and nickel more than offsetting the weaker price scenario for copper in 2014.
- Fertilizers adjusted EBITDA improved from -US$ 54 million in 2013 to US$ 278 million in 2014, despite lower sales volumes and prices.

5. Underlying earnings of USD 4.419 billion in 2014 excluding one-time effects of (i) foreign exchange and monetary losses (-US$ 2.200 billion), (ii) impairment of assets (-USD 1.152 billion), (iii) currency and interest rate swap losses (-USD 683 million), (iv) mark-to-market of shareholder debentures (-USD 315 million) and (v) relinquishment of land associated with the renewal of PTVI´s contract of work (CoW) in Indonesia (-USD 167 million), among others.

6. Reduction of US$ 2.254 billion in capex from USD 14.233 billion in 2013 to USD 11.979 billion in 2014, marking the fourth consecutive year of capex reductions.

7. Improvement in Health and Safety indicators with Total Recordable Injury Frequency Rate (TRIFR) falling from 2.6 to 2.3

4Q14 was a quarter marked by production records, low prices and non-recurring effects on EBITDA and earnings

Quarterly production records in:
- Iron ore output in Carajás of 34.9 million tonnes
- Total iron ore production of 83.0 million tonnes, a record for a fourth quarter.
- Pellet production of 11.6 million tonnes, a record for a fourth quarter.
- Nickel production of 73,600 tonnes.
- Copper production of 105,400 tonnes, with ramp-up in Salobo to 31,600 tonnes
- Gold production of 93,600 oz.

Source - Strategic Research Institute

voda 27 februari 2015 17:14

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Iron ore prices dip further in China dousing hopes of recovery

The continued ramp up from big iron ore miners amid continued measures to lower their production costs in Australia and Brazil is weighing heavily in the minds of iron ore traders and users in China amid inactivity in domestic steel market after reopening on Wednesday

Prices of various items of iron ore products from almost all origins CFR China slid further on Thursday dousing hopes of recovery in China post New Year Holiday

It seems that the reduced iron ore inventory levels of about 95 million tonnes at Chinese ports as compared to last high of about 113 million tonnes few months ago is failing to ignite buying sentiments

The falls have come amid reports of soft buyer interest in China with a recovery dependent on steel demand ahead of the start of construction season, which kicks into gear at the end of March.

On the other hand, iron ore heavyweights BHP Billiton and Rio Tinto could hammer production costs to less than USD 15 per tonne within 18 months. BHP has made rapid headway on cash costs, slashing them 29% in the six months to December to USD 20.40 per tonne. Rio's costs were pared to just less than USD 17 per tonne in the period.

BHP CEO Mr Andrew Mackenzie while warning this week that depressed iron ore prices are here to stay, said that BHP had an extreme imperative to continue to drive costs down and become the world's lowest cost exporter of iron ore to China

Mr Mackenzie added that “The looming wall of seaborne supply is almost certainly going to push iron ore prices to the low side for a while. Over the medium term, as new seaborne supply continues to exceed growth in demand, we expect iron ore prices to remain subdued. Longer term, the increased availability of scrap steel in China will impact pig iron demand and therefore for iron ore. The predicted rise of the scrap metal market next decade in China makes the cost imperative in iron ore and our determination to be the lowest cost supplier to China absolutely critical to continue the track record we're talking about today.”

Source - Strtegic Research Institute

toontjeavanti 27 februari 2015 21:45

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Steel prices slump to lowest in more than five years • 5:27 PM

Carl Surran, SA News Editor
•U.S. steelmakers are slashing prices to cope with a flood of imports juiced by the strong dollar, a move that will pressure their profit margins and reduce costs for buyers of steel, WSJ reports.
•Imports rose 33% Y/Y in January, according to new figures from the American Iron and Steel Institute, reaching 3.85M tons vs. 2.9M a year earlier; to stem the tide, steelmakers with major U.S. operations such as ArcelorMittal (NYSE:MT), U.S. Steel (NYSE:X) and Nucor (NYSE:NUE) have cut prices in recent weeks, according to steel distributors who buy from them.
•The benchmark hot-rolled coil index is down 17% YTD to ~$500/ton, its lowest level since August 2009.
•The lower steel prices are good news for makers of cars and car parts, construction companies and other major buyers of steel (NYSEARCA:SLX).

toontjeavanti 28 februari 2015 09:53

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ArcelorMittal (NYSE:MT) reported fourth quarter earnings for the fiscal year of 2014 on 13th February recording a reduction in net loss to $955 million as compared to $1.227 billion in the same quarter last year despite falling iron ore prices.

Being a steel manufacturing company in today's environment is a particularly tough challenge, and ArcelorMittal is no exception. The company has been hit hard, a fact that has shown up on their stock price which has gone down from $35 per share in 2011 to its current position of $11.04 per share. The ultimate blame behind this decline has to be levied on iron ore prices which continue to drop and weigh in on ArcelorMittal's financial statements. Unfortunately, a recovery is nowhere near in sight as forecasts by multiple institutions estimate that prices for the commodity will drop even further in 2015. A poll conducted by Reuters where 13 analysts were polled showed a median estimate of $68 a ton while analysts at Citigroup paint an even gloomier picture forecasting the commodity's prices going down below $60 this year.

The basic reason behind falling iron ore prices is over production which is unsupported by a rise in demand. Just last year iron ore lost more than 40% as supplies from the mining giants BHP Hilton Ltd, Rio Tinto and Vale SA continued to rise while demand for the metal failed to equate with the growing supply. A lot of this has to do with the Chinese economy's growth slow down as the world's largest country is also the single largest consumer of iron. China alone accounts for 60% of the world's steel demand and up till 2 years ago their demand for steel was growing at more than 6%. This figure and then 2.7% last year can be directly linked with the reduced paced of economic growth in the country, with latest figures showing that the Chinese economy was growing at 7.3%. Basic economics tells us that in order for prices to start rising, some producers will have to leave the market which will in turn control supply and thus push prices up again. A possible scenario here could be that the low iron prices will themselves increase demand and manage to revive iron ore prices, however that seems unlikely in the coming year.

What has been a pleasant surprise is that ArcelorMittal managed to reduce its losses this quarter in comparison to the corresponding quarter last year despite unfavorable commodity market conditions. The company resorted to cost saving tactics as well as selling-off non-core assets to reduce its debt burden, a factor which had caused some serious troubles in the recent past bringing their credit rating down to junk status in 2012. The credit rating downgrade in 2012 was a serious blow to the company as it weighed in on their financing costs. However, the policy has been effective in softening its assets section in the balance sheet as total assets have gone down by $13.129 billion as of 31st December 2014, as compared to the same figure last year. In the same time frame the company has also managed to pay off a good portion of its long terms debt with a reduction of $944 million, and bringing total liabilities down to $54.019 billion from $59.135 billion a year ago. However, none of this mattered at the end of the day as Standard & Poor further downgraded the company's long-term credit rating to BB from BB+ due to weaker iron ore prices, even though it maintained a stable outlook on the company's credit rating. The company hopes to reduce its net debt to $15 billion but the feat might not be possible even in the next 2 years given the commodity market's conditions.

Unfortunately, 2015 is not going to be ArcelorMittal's year, even if the company chooses to remains optimistic forecasting its adjusted earnings before interest and taxes to fall in the range of $6.5 billion to $7 billion, as compared to the $7.2 billion last year. The only solace the world's largest steel manufacturer has is that it is not alone in this mess as the entire industry is feeling the impact. What remains to be seen is how and when iron ore prices will start to rise again; will it be a supply side contraction that raises prices or will demand catch up and offer a more favorable equilibrium to producers?

The company has suffered a great deal since the financial crisis of 2008. Before the crash the company's stock was trading at more than $100 per share. Unfortunately, now the company stock trades at $11.09 per share. The stock price might show some degree of improvement in the coming year as ArcelorMittal continues to improve its operating margins and get rid of non-core assets. As far as being a viable investment option, I would recommend staying away from the steel industry as a whole for the moment, unless there are hints about metal commodity prices increasing.

This article was sent to 5,618 people who get email alerts on MT.

Niet echt een positief bericht voor Mittal longers, toch hoop ik dat we de bodem gezien hebben en ook een boemeltreintje komt op de plaats van bestemming, alleen duurt het wat langer en zitten de analisten er ook wel eens flink naast met hun glazen bol

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Yabbedabbedoe 28 februari 2015 10:36

0

ArcelorMittal has published the following news:

26 Feb 2015
ArcelorMittal to supply 23,000 tonnes of heavy plate steel for 350MW Baltic Sea wind farm

ArcelorMittal’s plant in Gijón will supply 23,000 tonnes of heavy plate for the construction of 29 jacket foundations for the Wikinger offshore wind farm in the Baltic Sea. Shipments will be delivered between March 2015 and March 2016.

To read more on this News item, go to:
corporate.arcelormittal.com/news-and-...

voda 1 maart 2015 16:47

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Budget raises chips in steel demand but import thrives

Steel market got slight jerk in India with some encouraging announcements viz., hiking of basic customs duty by 5%, thrust on housing in rural and urban sector aiming to construct 4 crore house in urban areas and 2 crore in rural areas. However import duty remaining untouched agony of steel mills remains unaddressed

Unraveling of the budget 2015-16 turned almost turned out be damp squib except for some palliatives having lesser short term but major long term benefits for steel consumption .

DEMAND
Investment In Infrastructure To Go Up by Rs.70,000 Crore In Year 201516 Over Year 201415 make a match between state of infrastructure with the growth targets.

Setting up of five Ultra Mega Power Projects and similar projects for roads, rail and ports will also provide a fillip to the economy.

In a major push on the demand side government propose to provide house for all by 2022. Accordingly they plan to construct 4 crore houses in urban areas and 2 crore in rural areas. It will give a major boost to steel consumption which has been languishing over the past several years. Individual home builder (IHB) sector demand will boost sales of rebar, structural steel and galvanized corrugated sheets significantly.

SUPPLY
On the supply side Indian steel mills are being mauled by dirt cheap imports from China and Russia of flat products viz., HRC, PPGI etc usurping the market share and pressurizing bottom lines.

The basic customs duty on goods falling under all the tariff terms of Chapters 72 and 73 that is iron and steel and articles of iron and steel, is being increased from 10 per cent to 15 per cent in bid to stem the deluge of cheap imports. It needs to be clarified that with this the government has raised the cap for maximum import duty by 5% but left the current import duty unchanged at 7.5%.

Under Chapter 74 & 76 the Special Additional Duty of Customs (SAD) on melting scrap of iron or steel, stainless steel scrap for the purpose of melting, copper scrap, brass scrap and aluminum scrap is being reduced from 4% to 2%.

Under chapter 27 basic Customs Duty on metallurgical coke is being increased from 2.5% to 5%.

IMPACT
Indian steel mills had been gasping for survival in the flat steel segment with invaded import bookings from China and Russia at huge parity disadvantage. Sluggish demand in domestic market proved to be double whammy for mills.

Relentless clamor by Indian mills caught the attention of government at long last. However announcement of hike in basic custom duty by 5% was meek reaction to burgeoning problem at hand.

The Indian mills presently are ensconced with parity disadvantage of meager INR 2000 per tonne as the material arriving had been booked at USD 470 per tonne.

Latest booking of HRC was done at USD 400 per tonne CFR in cold rolling grade and USD 385 per tonne in tube making grade expanding the gap to unbridgeable INR 6800 per tonne at current domestic price level. Since this material is likely to arrive by mid-April the mills are under tremendous pressure to reduce the price levels. The situation likely to worsen further with export offers likely to fall

Since the current import duty remains unchanged the impending crash in domestic price has not been averted. On the other hand import bookings will remain in limbo for some time since the Sword of Damocles hangs about hike in import duty depending on the situation.

Import offers are likely to plummet after the Chinese Holiday since the domestic market remains oversupplied. Ukrainian and Russian mills basking under the severely emaciated domestic currency ready to take the charge in price war hike in custom duty will make no impact.

Anything short of the following three measures will be ineffective in neutralizing the threat.
1. Major hike in import duty upto 15%
2. Bringing imports under the Steel product quality control order making BIS certification mandatory
3. Initiation of Safe Guard measures

Reduction in Special Additional duty on scrap will certainly give some respite to the secondary steel mills since cost of procuring scrap a key input in Induction Furnace will go down thereby releasing pressure on margins whilst the finished market languishes.

Hike in basic customs duty on Metallurgical coke will not have significant impact on cost of steel production since all the major steel mills in India are importing coking coal on which the duty remains unchanged.

Source - Strategic Research Institute

voda 1 maart 2015 17:00

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Shagang adds new product to its structural steel

Recently, Shagang Group successfully developed high strength pickled sheet QSTE420, which has been produced on a large scale. At present, the order for the second batch of the product has been signed.

QSTE420 is said to be one typical specification in the QSTE series of Germany steel products, which has been widely used as structural steel of car seat and auto beam.

On January 2015, the output of new CR products in Shagang reached 27,000 tonnes. Now, the finished products of which have been used by many famous auto manufacturers.

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

voda 1 maart 2015 17:01

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Chinese rebar futures hit 1 month low and post-holiday demand weak

Reuters reported that Chinese rebar futures fell and posted their biggest weekly loss in six weeks as there was little sign that steel demand was picking up in the world's top consumer after the long Lunar New Year holiday.

The most traded May rebar contract on the Shanghai Futures Exchange hit a low of CNY 2,462 its weakest since January 28. It closed down 1.3% at CNY 2,464. It lost 2 percent this week and has fallen 4.9% so far this year.

Mr Li Wenjing, an analyst at Industrial Futures in Shanghai said that "Construction activities have not started yet. And a weak property market could continue to weigh on steel demand in the first half of this year as smaller cities are still facing high pressure digesting housing inventories.”

Traders said that sluggish sales have forced more Chinese steel mills to slash production after the week long Lunar New Year break and hold back on purchases of the raw material.

According to industry consultancy Umetal, imported ore stockpiles at major ports in China had risen 1.42 million tonnes to 95.96 million tonnes as of Friday compared with February 17.

Iron ore futures for May delivery on the Dalian Commodity Exchange were up 0.2% at CNY 485 but the price has fallen 4.3% so far this year.

According to data compiled by the Steel Index, Benchmark 62 percent grade iron ore for immediate delivery to China .IO62-CNI=SI fell 0.6 percent to USD 62.50 per tonne on Thursday. The price has fallen 12.2% so far this year.

Source – Reuters

voda 1 maart 2015 17:02

0

Price rise of H-beams and sheet piles expected after Chinese New Year - TEX

According to a source, a Korean mill source of steel H-beams is observing that as it has entered the Lunar New Year after a price fall in the Korean market became gradual, there is a possibility for prices to bottom out depending on a market condition of this or the next week.

The H-beam mills in that country left their February prices against export unchanged and the mill source is thought to be considering that a price fall of Chinese products might reach a limit. In the Asian region, prices of small sized H-beams for Korea are reported to be USD 470 to USD 480 CFR and those of medium sized or more of H-beams of both Chinna and Korea are done to be USD 550 to USD 560 CFR.

The holiday is over soon, and there is no observation for prices to fall at the present stage. Meantime, such observation is spreading that the Singaporian Government will implement monetary tightening. Activities related to projects might cease, and it is concerned that negotiations on H-beams may decrease with it.

In Hong Kong, sheet piles are said to have been offered at USD 570 CFR before the Chinese New Year holiday by Zizhu Iron & Steel, Jinxi Iron & Steel and so on. Such price is lower by over USD 150 than that of the Japanese mills. In that market, the Japanese mills are in a state to have no choice but to wait and see.

There will be no indication of a change in the situation to appear for the time being even after the Chinese New Year holiday. Meantime, it is usual that a prices rise of steel products starting with H-beams is found from late February to June/July in the export market. For this reason, the Japanese mills are now to watch the next week markets of H-beams and sheet piles with entertaining a hope that if there is any trigger, a rebound in prices can be expected.
Source - The TEX Report

voda 1 maart 2015 17:04

0

China's iron ore imports from Australia rises in Jan

Reuters reported that China's iron ore imports from Australia jumped 10% to 49.95 million tonnes in January as major miners expanded production to gain market share despite an economic slowdown in the world's top consumer.

But overall imports dropped 9.3% to 78.62 million tonnes in January from a year ago, however, Australian miners managed to increase their market share of the total to 63.5% from 58.8% last year.

Customs data showed that shipments from Brazil, the second largest supplier to China, dipped 3.9% to 14.93 million tonnes in January and South Africa, the third largest supplier, tumbled 27.7% to 3.33 million tonnes.

The world's big three iron ore miners Rio Tinto , BHP Billiton and Vale have proceeded with expansion plan to help push prices lower and drive more high cost rivals out of business.

The survival of the fittest strategy, outlined by Rio Chief Executive Mr Sam Walsh, is expected to see imports from Australia and Brazil take more than 80 percent of the Chinese market in 2015, from 64% four years earlier.

Source - Reuters

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