By unknow| 2008-06-06 00:00:00

It is reported that in order to meet the urgent demand for galvanized plate and color coated sheet for building movable houses in the quake hit areas, major steel makers in China have actively adjusted their production, focusing on producing color coated sheet. China's largest steel maker Baosteel has put all of its three color coated sheet production line into full load production, producing 600 tonnes of sheets daily on average, the peak level of the production line. It has suspended the export of color coated sheet and maintained the price unchanged to ensure the supply, despite of the big rise of raw materials and fuels. In a bid to not touch off a price wave of rolled steel, Baosteel Group has also decided to delay the release of its price adjustments in the coming quarter, which had been scheduled for May 20th 2008. Another large steel maker, Wuhan Iron and Steel Corporation is working on producing 20,000 tons of color coated sheets to support the reconstruction of the quake hit areas. Meanwhile, Panzhihua Iron and Steel Corporation, the large steel make located in Sichuan has gradually resumed production since May 22nd 2008. With the gradual recovery of Pangang's production capacity, the price hike of rolled steel triggered off by the quake in Sichuan will be obviously checked in the near future.

By unknow| 2008-06-05 00:00:00

It is reported that Chinese construction steel prices have leveled off this week and they are likely to pick up again later. Shanghai market prices are largely unchanged.HRB335 20mm rebar is being quoted at CNY 5340 per tonne to CNY 5350 per tonne, HRB400 at CNY 5590 per tonne to CNY 5620 per tonne, flat with last week. Price for commercial wire rod remained at CNY 5800 per tonne that for hi speed material is tagged at CNY 5910 per tonne. While rebar and wire rod prices in Beijing market have seen remarkable rebound. 6.5mm hi speed wire rod by Tangshan is being quoted at CNY 5950 per tonne a jump of CNY 350 per tonne recently. HRB335 and HRB400 16mm to 22mm rebar price move up by CNY 100 per tonne to CNY 120 per tonne to CNY 5590 per tonne and CNY 5800 per tonne respectively. Mysteel said domestic rebar and wire rod prices are expected to see another round of increase, bolstered by robust demand, low output, increasing production cost and high international market price. Taking Shanghai price for HRB335 20mm rebar as benchmark, it is expected to approach CNY 6000 per tonne after exceeding CNY 5500 per tonne. Export prices remain at high level and allocations are said to be quite tight. Offer for rebar with vanadium are normally at USD 1100 per tonne to USD 1140 per tonne FOB. Sources say that Shagang has concluded 120,000 tonnes rebar exports early this month and the average contract price is USD 1000 per tonne FOB. Despite price inversion with market price it shot up its ex works price by CNY 350 per tonne due to electricity limit and maintenance in June. (Sourced from MySteel.net)  

By unknow| 2008-06-05 00:00:00

It is reported that Anshan Steel accelerates its expanding steps to South China and Ningde Steel Project is likely to be approved. Mr. Zhang Xiaogang GM of Anshan Steel said that the production arrangement is one of key strategies in Anshan Steel this year. He said that Anshan Steel is now programming for a CR plant together with a steel company in province Fujian. The result would come out in two months. He added that province Fujian would still be the location of steelworks even if they fails in the negotiation, because it is an overall strategic arrangement in Anshan Steel Group. Mr Chen Rongkai official in the city of Ningde said in the end of last year that the provincial government in Fujian has signed frame agreement with Anshan Steel and Ningde has already finished the investigation on 12 million tons steel project. He indicated that 1.2 million tons CR project which is the first phase of the project with an investment of CNY 5 billion would start soon. However, Mr. Zhou Xizeng analyst from CITIC Securities believed that it would take one or two years for the project to start. Mr. Zhou Xizeng said “If Zhangwan Steel Project is approved and there could be five new super sized steel projects in China together with Shougang Caofeidian Project, Shandong Steel Rizhao Project, Wisco Fangchenggang Steel Project, Baosteel Zhanjiang Project. The coast arrangement in Chinese iron and steel industry would be completed.”

By unknow| 2008-06-04 00:00:00

 Guangzhou Daily reported that latest statistics show that Guangzhou Iron & Steel Corp Ltd has yielded 139,353 tones of crude steel and 114,198 tones of finished steel in May with sales revenue hit monthly record of CNY 788.21 million. The good performance was achieved against the backdrop of soaring prices for iron ore, coking coal and electric power. Guangzhou employers said a total of 94,116 tones of qualified pig iron has been yielded in May. Mr. Huang Zhiwei, senior official of the company said the company aims to produce 1.5 million tones of crude steel this year up by 26% from last year. He said that "We are confident to achieve the target." Guangzhou Iron & Steel Corp Ltd has donated CNY 1.3 million to the disaster affected Sichuan province so far.

By unknow| 2008-06-04 00:00:00

Based on preliminary Census Bureau data, the American Iron and Steel Institute reported that the US imported a total of 2.944 million net tons of steel in April 2008, including 2.194 million net ton of finished steel up by 15% MoM and 4% MoM respectively. Total and finished steel imports through the first four months of 2008 are down 7% and 9% respectively vs the same period in 2007. However, the monthly average for finished steel imports in the most the February to April 2008 period is up 8% as compared to monthly average in the previous November 2007 to January 2008. Total and finished steel imports on an annualized basis are down 4 and 5 percent, respectively, vs. 2007. On an annualized basis, total imports of steel in 2008 would be 32 million net tons. Key products with large increases in April compared to the month before include: 1. Ingots and Billets and Slabs up by 64% 2. Hot Rolled Sheets up by 40% 3. Reinforcing Bar up by 30% 4. Wire Rods up by 92% 5. Plates in Coil up by 33% 6. Cold Finished Bar up by 32% For the first four months of 2008, products showing increases vs. the same period in 2007 were 1. Line Pipe up by 26% 2. Oil Country Goods up by 18% 3. Heavy Structural Shapes up by 10% Mr. Dave Phelps president of AIIS said that imports increased in April to 2.943 million tons up 14.5% from March. While one month a trend does not make, this welcome positive development for April will bring some relief to domestic consumers, who have been struggling with low inventories and rapid fire price increases in 2008.” He added that “Import arrivals in late 2007 and early 2008 were clearly too low for our cur customers given the inability of the domestic industry to meet total demand. The largest increases in April in finished products were hot rolled sheet and wire rods, both products that have been in tight supply in 2008. The large increase in slabs will likewise increase finished product deliveries for the domestic mills, adding needed steel to the marketplace.” Mr Phelps concluded that “We hope that this trend will be sustained as we go deeper into the second quarter.”

By unknow| 2008-06-03 00:00:00

It is reported that Sinosteel Corporation has declared its AUD 1.36 billion takeover offer for iron ore miner Midwest Corporation unconditional this week. Sinosteel confirmed that its sweetened offer was final on Wednesday after a senior executive revealed at a mining conference in Perth last Friday that the Chinese steel making giant would not up its offer further. Sinosteel has undertaken to pay Midwest shareholders AUD 6.38 cash per share even if they have already accepted the earlier AUD 5.60 cash per share offer. Sinosteel's offer closes on June 13. Sinosteel's AUD 6.38 cash per share offer is eclipsed by Midwest's share price, which was down one cent to AUD 7.05. Midwest shareholders have the choice of accepting the offer or holding on to their shares in anticipation of a proposed merger between Midwest and its one time rival Murchison Metals Ltd. Sinosteel has also lifted its stake in Midwest to 20.58% from 19.89%.

By unknow| 2008-06-02 00:00:00

It is reported that a high powered Committee of Secretaries has decided to amend recently imposed export duty on steel products. The report cited a top level government official as saying that "Export duty on steel products, including high value steel items is getting rationalized. The committee of secretaries has taken a decision." He added that the duty on all but a few primary and semi finished steel products will be removed. The department of revenue has also agreed to the proposals of the steel ministry and next week it will issue the notification. The committee of secretaries' decision follows representation from the steel ministry to consider withdrawal of export cess on steel products. The issue was also discussed earlier by steel producers with Dr Manmohan Singh. At the meeting, there was a broad agreement that export cess on steel would be withdrawn as the steel industry has reduced prices to support the government’s inflation control initiative.

By unknow| 2008-05-29 00:00:00

On 22nd May, Chonggang received an order from governor of Chongqing, to secure the color steel supply of 800,000 square meters of earthquake proof prefab, and deliver these prefabs to Wenchuan, the disaster-hit region, by the end of June.   The prefabricated houses must be in accord the standards by Ministry of Housing and Urban-Rural Development of PRC. 800,000 square meters of prefabs will need colored steel 14,000 tons to 15,000 tons, “sandwich-panel” of 2.80 million square meters, which will a tough target for the company. Besides, the company has supply panels to other companies to manufacture prefabs.   But the company is committed to completed the target in shortest time and least costs, to support the earthquake relief

By unknow| 2008-05-29 00:00:00

The May 12 earthquake once forced Panzhihua Steel Chengdu Steel to suspend operations that day due to the collapse of workshops and the quake-related damages on equipment. The company arranged a meeting on the following day discussing matters on resumption at iron making plant. On May 14, a 70t EAF and a 30t converter were on track of operations. 304 continuous rolling pipe plant and 508 cycle rolling pipe plant also kicked off trial production on the following day.   Its wire plant, rod plant, special pipe processing plant also joined the resumption move until a circular warning a possible aftershock measuring at 6-7 Richter scale at the epicenter of Wenchuan, Sichuan released on May 19-20. As a result, all the production lines in the company halted again.   However, Panzhihua Steel Chengdu Steel brought back into operations of No 2 sintering machine, No 1 blast furnace, all converters and EAFs and 340 and 508 pipelines from May 21, according to officials from the disaster relief headquarters who added they will always put safety production on top priority.

By unknow| 2008-05-28 00:00:00

Steel prices in China should be decided by the market, with no government interventions, Xiong Bilin, Industrial Department deputy director of the National Development and Reform Commission (NDRC), said on Thursday.   Xiong said these were his own personal opinions while commenting on Baosteel Group's delayed release of its price adjustments in the coming quarter, which had been scheduled for May 20.   Surging prices of imported iron ore would push up the costs of domestic steel makers by 400 to 600 Yuan (57 U.S. dollars) per tone, said Xiong.   The overall cost would rise by about 1,000 Yuan per tone, taking into account increased coke prices, shipment and energy charges, said Xiong.   The steel makers might want to pass on the cost rises to downstream enterprises, depending on what downstream players could afford, he said.   "Among them, the electric appliance manufacturers could be weaker in taking on upstream price increases. The high steel prices will go down if they were unacceptable to downstream companies," said Xiong.   Baosteel Group might also be contemplating the affects of the 8.0-magnitude earthquake that hit southwest China last week, said Hu Yanping, an analyst with Umetal.com. Reconstruction work would require large amounts of steel.   But given the high domestic prices already pressing upon downstream companies, market concern is that the government might raise export taxes to guarantee domestic supply, Hu said.