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10.Mar. 2010
According to The World Steel Association, European steel demand will bounce some 20% in 2010 as the global industry recovers, but much of the West's business has been irrevocably lost to the East.
The World Steel Association said that European steel demand will bounce some 20% in 2010 as the global industry recovers, but much of the West's business has been irrevocably lost to the East.
Mr Ian Christmas Director General of worldsteel said the outlook for the world steel industry was brightening and the association would likely nudge its global demand growth forecast to around 10% from 9%, due to the improving global economy.
He told Reuters in an interview that “The industry is in a positive mood. But still cautious about the recovery.”
Global steel demand in 2010 would return to 2008 levels, but that demand in "old industrialized countries" this year would only be half way back to 2007 levels. He said “China will continue to grow around 10% and you'll find double digit increases in demand in the old industrialized countries.”
He told “Europe has permanently lost some businesses to other parts of the world and it will never come back. The emerging economies are putting on steam and therefore we've seen a permanent shift in the dynamics of our industry.”
He said demand could grow 27% in Germany and 30% in France in 2010 as Europe's major economies recover. But he added the crisis had done permanent damage to the Western steel industry as business thrived in fast growing Eastern economies like China and India.
Mr Christmas added that restarts of blast furnaces across Europe signaled a return of confidence in the industry, but that there were also concerns about too much production being restarted prematurely.
Mr Christmas said BRIC countries, Brazil, Russia, India and China, will account for some 60% of the global steel demand this year, compared to 58% in 2009 and 50% in 2008.
He said “Further growth in China and India would be domestically driven. Rising income levels in these countries will drive domestic consumption, therefore the engine of growth is no longer in the old world, it is now permanently switching to the new world.”
He added that the autos sector was going to be key to the industry's recovery. He said “Automotives clearly are going to be a positive dynamic in China and India. There was more uncertainty about where disposable income would go in the West. Improving Western auto sales in 2009 may have been the result of government backed scrappage schemes encouraging people to bring forward sales that would otherwise have occurred in 2010.”
But he attributed rising car sales in China and India to real demand.
[Steel GURU]
10. Mar. 2010
Damstahl´s March briefing reports about an increasing demand for stainless steel. To an increasing extent the mills are utilizing their production to an optimum.
Our March briefing reports about an increasing demand for stainless steel. To an increasing extent the mills are utilizing their production to an optimum. This is due to an adaption to their production capacity and thus a utilization of 70% is optimal for the mills.
At present the limits for the price development for nickel and molybdenum are tested in the upwards direction. Refilling of stocks, increased consumption in the process industry and a generally carefull optimism are all factors that form the basis for the price increases finally for a long time not only being based on speculation.
Mills – European mills have increased their stainless supply substantially in Q1/10 to cope with increasing order intake. Capacity utilizations reached levels of 70%. Both improved demand from end use segments and increasing orders from stock-holders, contributed to the positive development in the first months of 2010. Most European mills expect however a slight slowdown of production in the second quarter. In general, the market for cold rolled flat products is much better than for hot rolled products.
Profit Situation has started to improve in Europe. A number of mills (TK and Outokumpu in Europe) and distributors still reported losses in Q4/09. However, increasing market prices (higher alloy surcharges and base prices expected) and reduced costs will enable the mills to return to (more satisfactory) profits.
Distribution and stocks: after de-stocking in Q4, the market started to re-stock again in Q1 in expectation of a demand improvement, empty material pipelines and increasing raw material prices. But: it is again a moderate up-stocking activity. Most distributors prefer a conservative stock level planning after 2008/2009 experiences.
Industry Segments: better order intake for new projects and re-start of postponed projects will have a positive effect on the process equipment sector in 2010. Demand will climb particularly in HY2 due to a time lag between order intake and material flow. The further development in consumer durables, automotive and building & construction remains uncertain: there is only cautious optimism – many European buyers even remain pessimistic for their future business expectations. They will also remain hesitant with new orders.
Macroeconomics: in general, the growth dynamics for the European economy is still rather limited. 2010 will not compensate for drastic 2009 setbacks. The EU-commission expects an EU-27 GDP growth of only 0.7% for this year, which is again far below normal growth patterns.
Raw Materials: increasing demand for raw materials would wide initiated an upwards tendency in raw material prices. Nickel exceeded the 23,000 USD/t mark recently, whilst the extremely high LME stocks started to decline. It is expected that raw material price will continue to increase in Q1. The introduction of Mo at the LME (February) has had a major impact on the prices. Mo exceeded the 45,000 USD/t mark in early March.
[Metal Supply news]
10. Mar. 2010
China Steel Corp. to raise HRC leeway price
Taiwan’s China Steel Corp. (CSC) will release its leeway resources soon and it is estimated that CSC would lift the HRC price by NT$600/ton. Currently, CSC is studying the operation of Leeway and calculating the quantity of HRC, CRC and GI products. With the increasing raw material cost on the international market, how much CSC’s leeway will increase on price still remained as an open question. Market participants said that HRC from CSC’s Leeway would probably go up by NT$600/ton due to tight supply.
Taiwan’s CRC prices shoot up
The transaction of CRC seemed active while the transaction of HRC remained quiet on the Taiwan market. Last week, because of the shortage of CRC and estimation that Chung Hung Steel (CSC) would lift the price dramatically, buyers booked the order for CRC one after another. CSC is expected to lift the HRC and CRC price by NT$600/ton and NT$800/ton respectively for April and May on 24th February. Traders said that because of the decreasing output of cold rolled sheet from China, the offer from China is also shooting up.
[Yieh news]
27. Feb. 2010
Global crude stainless steel production for 2009 is expected to total 24.7 million tonnes. This corresponds to a decline of 4.6 percent from the result in the previous calendar year.
MEPS' forecast for the outturn in 2010 is 28 million tonnes - just 0.2 million tonnes shy of the all-time high achieved in 2006. However, this does not represent equally good news for producers in all regions. The predicted EU output of 6.9 million tonnes this year - nearly one million tonnes more than in 2009 - is 26.4 percent less than the 2006 result and the forecast tonnage for Japan is only 76.9 percent of the outcome four years ago. Meanwhile, the anticipated figure of 9.6 million tonnes for China and Russia signifies growth of 73 percent over the same period.
Japanese production picked up in the second half of 2009, buoyed by recovering automotive and domestic appliance manufacturing. Operations are expected to continue at a similar rate, resulting in a 22.4 percent, year-on-year, increase in crude stainless production.
Activity in the United States was very poor in the first six months of last year, bringing about a third consecutive annual reduction in output. Business has expanded since then and further, moderate growth is expected to yield a total of 2.15 million tonnes in 2010, which is 20.4 percent more than the 2009.
The total crude stainless steel outturn for South Korea for 2009 is estimated at 1.61 million tonnes - up by around 2 percent on the 2008 outcome. The country's leading producer, Posco, is aiming for a 22 percent, year-on-year, hike in production. This will contribute, MEPS predicts, to a total figure of around 1.95 million tonnes this year.
Demand in South Africa recovered from a dire situation twelve months ago to achieve stainless steelmaking tonnages in the third and fourth quarters which were higher than any recorded since the first half of 2007.
Production levels in Brazil also picked up in the latter part of 2009 but not sufficiently to prevent a fall of 13 percent compared to 2008. The rather different market conditions in India led to fairly stable output throughout last year.
Stainless production in China continued at close to capacity for most of 2009, although the mills cut back a little in the final two months in order to apply some control to year-end inventories. However, the annual outturn was still, as predicted, an all-time high of around 8.7 million tonnes. A more moderate growth in output of around 7.9 percent is forecast for 2010.
[MEPS news]
26. Feb. 2010
European metallurgical companies started this year very positively having gained flat and long products prices increase by 30-50 euro per ton in the first half of Jan. However, there was not new increase scheduled to Feb. The quotations for more deficit CRC and galvanized steel eventually stabilized, and HRC, plate, and construction steel prices somewhat decreased.
In the middle of Feb. the average level of European HR steel prices amounted about 410-430 euro per ton EXW; rebar fell to about 380 euro per ton EXW. Recently some companies announced the necessity of new increase of the prices in the beginning of the Q2 explaining it by raw materials prices growth and saying about the possibility of 50 euro per ton increase. However, independent analysts doubt that these plans will be fully implemented.
According to British consulting company MEPS, the main problem of entire Western Europe is low activity of the end-users. Under the conditions of economic instability most industrial companies do not want to risk investing much money to the stockpiling. According to the CEO of Corus, Kirby Adams, today only 15% of the company’s sales volume fall on the long-term contracts (about a year); the majority of the buyers prefer to conclude the agreements for a quarter or even a month. As Mr Adams says, European steel market will recover to the 2007 level not earlier than in 4-5 years.
In recent months the best results in the EU countries were shown by the automotive industry but the rally here was caused mostly by the stimulating programs which have been already terminated. Further perspectives are rather indefinite, that is why the distributors also prefer to hold careful policy. Although the stockpiles are low, the dealers do not try to refill them. But, according to CRU, some consumers, bewaring of the prices increase in the Q2, have begun to conclude new contracts, while the prices have not grown yet.
In European long products market negative weather conditions played the negative role and decreased the demand which was low even before. Central European market, especially Poland where the preparation for the Euro-2012 continues, is more or less stable. At the same time in the Mediterranean countries the situation is depressive. Besides, the before-crisis mechanism of construction industry financing has not recovered in the whole region.
Cheap euro helps European metallurgists. The euro/US dollar rate continues to decrease, having fell almost to $ 1.35 in the end of last week. As the result dollar prices of European companies occurred to be much lower than average world level, especially if to take into account recent increase in Middle East. Thus, European rebar, which is offered to North Africa at 360-370 euro ($487-500) per ton FOB, became cheaper than Turkish. European HR steel is quoted now at $554-581 per ton EXW. Today it can compete with Ukrainian steel only, which is offered at about $570 per ton FOB Izmail. But some European analysts still talk about the flow of cheap Chinese products after the end of the Asian New Year holidays.
The end of European problems is not seen yet, that is why in the nearest future this market is likely to be very attractive for Russian and Ukrainian HR steel suppliers. But in the beginning of the Q2 European metallurgists will obviously have to gain the prices increase, but the results will probably to be worse than in other regions.
[Rusmet.ru]
26. Feb. 2010
Spot iron ore prices hit a fresh 18-month high yesterday as Chinese steelmakers returned to the market after their new year holidays, buying heavily to replenish inventories.
The sustained surge in spot iron ore costs points to a record rise in the annual price contracts being negotiated between global miners Vale, Rio Tinto and BHP Billiton and steelmakers in China, Japan and Europe.
Australian benchmark iron ore - 62 per cent iron content - surged yesterday to $133.1 a tonne, according to swaps cleared at the Singapore Exchange.
Spot prices include the cost of shipping to China. Excluding freight costs from Australia to China of about $10 a tonne, current spot prices are more than double the $60-a-tonne level at which the annual contracts were settled in 2009.
This strength bodes well for the miners as they seek record prices for the 2010-11 contracts that start on April 1.
The miners, led by BHP Billiton and Vale, have indicated that they want to shift the annual contract prices closer to the spot market, a move opposed by the steel industry.
Several mining executives told the Financial Times this month that the increase in annual contracts this year could range between 70 and 90 per cent .
Eiji Hayashida, executive vice-president at JFE Steel of Japan, the world's sixth-biggest steelmaker, this week rejected the proposals to move annual contracts closer spot prices.
He said: "Bumpy, wild swings in iron ore and coal prices are not favourable."
Spot prices have surged 126.5 per cent over the past 12 months as Beijing ramped up its buying of international iron ore supplies to offset a drop in domestic production.
Spot prices have risen amid market speculation that New Delhi could increase India's export tax on iron ore after imposing a 5 per cent royalty in late 2009 . India is the world's largest exporter of iron ore after Australia and Brazil.
As iron ore costs contribute to steel prices and the cost of many consumer goods ranging from cars to washing machines, the contract negotiations are vitally important for the global economy. Acrimonious talks are ongoing, say industry executives.
Crude oil prices fell nearly $2 a barrel as risk appetite weakened amid fresh concerns over Greece's fiscal problems.
Nymex April West Texas Intermediate dropped $1.83 to $78.17 a barrel, while ICE April Brent lost $1.80 to $76.29 a barrel.
Copper lost 1.7 per cent to $7,030 a tonne. Analysts at Desjardins Securities said that real demand for copper in China was growing faster than consensus expectations.
Desjardins highlighted an acceleration in China's production of copper semifabricated goods and noted that copper prices in Shanghai had remained above the benchmark London Metal Exchange prices since December.
Gold traded in a narrow range just shy of the $1,100 mark, fractionally higher at $1,098 a troy ounce.
Bradley George and Daniel Sacks, co-portfolio managers of the Investec Global Gold Fund, said the positives for gold combined with demand from wealthier investors should push prices to a peak close to $1,300 an ounce over the next six months.
[World Scrap]
24. Feb. 2010
Japan’s scrap price has soared to US$390/ton and the U.S. scrap price has increased to US$363/ton during Chinese New Year vacation.
Because of the snowstorm in North America, it caused the scrap collection become more difficult and push the scrap price to go up and Japan’s scrap price has increased by about 8.3 percent recently; therefore, "Feng Hsin Iron & Steel"-Taiwan’s major steel long products producer- has also hiked its scrap purchasing price by 2.67 percent and rebar offer price by 1.6 percent.
The company may rise their price again later if the domestic market demand keeps going well in order to match the global steel price level.
[ScrapMetalPrices]
23. Feb. 2010
World steel output increased by 25,5% year-on-year in January to 109-million tons, the World Steel Association said on Monday.
Japan's output rose by 36,8% year-on-year to 8,7-million tons, China's steel production by 18,2% year-on-year to 48,7-million tons and South Korea's output by 32,4% year-on-year to 4,5-million tons.
The US reported a 48,8% increase in steel production to 6,1-million tons in January.
Further, Germany saw a 27,7% increase in output to 3,4-million tons, while France's output rose 32,3% to 1,1-million tons. Turkey also increased its output to 2,1-million tons, a 2% year-on-year increase.
Brazilian crude steel production amounted to 2,7-million tons in January, representing a 66,6% increase on output in January 2009, while Russia produced 33% more crude steel at 5,2-million tons.
The Ukraine's output increased by 28,4% to 2,7-million tons, while Australia boosted its output by 38,6% to 600 000 t in January.
Africa's crude steel output increased by 21% to 1,3-million tons, compared with 1,1-million tons the year before, with South Africa having increased its output to an estimated 710 000 t in January, compared with 470 000 t in January last year.
The association, which represents 66 countries, noted that the world crude steel capacity utilisation rates had improved to 72,9%, up from 71,9% in December.
This was also 11,6 percentage points higher than the capacity utilisation rates of January 2009.
[EngineeringNews]
23. Feb. 2010
According to the latest prediction of China Iron and Steel Association, China crude steel production of 2010 is expected to breach 600 million tonnes a growth of some 6.2% from the previous year.
The Association data shows that, China crude steel output climbed to a record high at 568 million tonnes in 2009 up by 13.5%YoY. The apparent consumption of domestic crude steel in 2009 was 565 million tonnes increase of 112 million tonnes or 24.8% from a year ago.
The institute predicted that the output of crude steel in 2010 is to break 600 million tonnes up by 6.2%YoY taking consideration of the macro economic situation as well as restrains in resources, energies and environment conservation, the intensifying global trade protectionism momentum, and uncertainty with the social inventory.
Data also shows that, in 2009 China imported over 23.3 million tonnes of crude steel up by 40%YoY and exported 26.2 million tonnes sliding about 60%. That means a net export of 2.87 million tonnes a sharp loss of 44.76 million tonnes or 94%YoY.
[Steel GURU]
23. Feb. 2010
Tokyo Steel Manufacturing Co (5423.T), Japan's biggest maker of construction steel, said it would raise prices on all products for the second straight month in March due to surging raw material costs.
"The cost of raw materials, including steel scrap and alloys, is expected to rise further after the new financial year begins in April," Naoto Ohori, managing director at Tokyo Steel, told a news conference.
"For coking coal and iron ore, prices could rise by much more than initially thought," he continued.
The firm will increase its March contract price of H-shaped steel by 4.5 percent to 69,000 yen per tonne.
It will also soon start exporting H-shaped steel at $750 per tonne and hot coils at $700 per tonne, Ohori added.
The company had stopped exporting products because prices were too low.
He said the current market situation was similar to that of early 2008, when skyrocketing raw material costs led to four to five straight months of price increases at steelmakers.
"That could happen again," he said.
[Reuters]
23. Feb. 2010
It is reported that steel plate manufactures are considering lift up their prices in March, as reported by www.yieh.com. One mill states that the current domestic demand is very strong that orders are fully booked in March; they plan to lift up 500 rupees/ton at least.
It is shown a shortage of supply of heavy plates in India, the importing prices had gone up from US$595/ton to US$675/ton from January to February.
[ScrapMetalPrices]
18. February. 2010
First quarter flat product business is virtually finished now and spot prices for stripmill products have moved up in many instances. They are expected to rise further in period two if the mills' initiatives prove successful. Most producers have not quantified their proposals so far. Although stocks are low throughout the supply chain, end-user consumption has failed to recover. Consequently, buyers are very cautious. Distributors, in particular, question whether they will be able to recoup the increases from their customers.
In Germany, supplies for the remainder of the first quarter are quite limited and basis numbers have been pushed up as a result. Buyers are in discussions for the second trimester and anticipate hikes of anything from €50 to €100 per tonne. The mills argue that raw material costs are escalating. Currently, they have relatively good order books from the auto sector and from service centres whose empty stocks need replenishing. The fear is that the benefits from government incentives have already accrued and that sales will reduce during period two, causing downward price pressure.
French consumption has strengthened slightly but some market participants point out that it varies significantly depending on sector. Sales to the carmakers remain good, for now. Producers are claiming increases for April/June, while spot prices have already started to rise. The quarterly deals should be finalised by the start of March. Delivery lead times are extending. However, distributors complain of poor end-user demand, fearing they will be unable to pass on the hikes implemented by the steelmakers.
Activity is only a little better in Italy but market confidence is improving. However, a lack of final consumption still poses a major problem. Moreover, tightening credit lines are not allowing business to flourish. Service centres are fighting for orders, thus forcing down resale values. They worry that consumers will not be willing to pay the higher prices demanded by the mills.
The level of activity in the UK is not encouraging. Real demand remains subdued although a degree of restocking has taken place. No substantial improvement is likely for some time to come. Prices have moved up through January/February and suppliers have started to indicate their intentions for second quarter business. However, as the increases are purely cost driven, success is not guaranteed. Independent distributors claim that resale values from Corus-owned service centres are depressing the market and that, as mill prices climb, their profit margins will be squeezed even tighter. Any recovery looks fragile.
Belgian consumption, which was already low, has been further damaged by the harsh winter weather. The steelmakers are endeavouring to talk values up but are finding it hard to make sales. Service centres believe that producers are pushing material through their own tied outlets at very cheap prices. Certainly, their resale values are not moving inline with the mill hikes.
In Spain, suppliers claim that rising raw material expenditure is the catalyst behind their proposed price advances. However, distributors and end-users consider the size of their demands to be excessive in the present economic climate. Service centres are currently selling extremely cheaply - well below replacement costs in many instances. Even though stocks are now in balance with the much reduced consumption, this will create problems for the mills when trying to implement more increases.
[MEPS news]
17. February. 2010
The steel prices remained stagnant in China last week for the second consecutive week.
Although credit squeeze is taking its toll on Chinese demand for metals, pricing announcements by Chinese steel majors point to expectation of buoyancy after Lunar Holidays.
It is reported that an unpublicized directive released on February 12th morning, Baosteel, the top China steelmaker, unveiled its price change details for productions of March 2010 with prices of HRC and CRC both elevated by CNY 300 per tonne. This is a strong signal of market scenario for flats post Lunar Holidays.
Although some Chinese analysts have given positive queues for long products also, but it is difficult to outline likely scenario as demand for construction material has remained subdued and may not look up even after post holidays.
It appears that the trend this year is going to be different than last year when after opening on firmer note, post Lunar Holidays, prices of both long and flat products went on to decrease substantially till mid May 2009.
The Chinese Long Product Price Index CLPPI lost 8 points last week whereas the Chinese Flat Products Index CFPPI lost 7 points. The overall price index CHISPI decreased by 8 points.
[Steel Guru]
17. February. 2010
The world's big iron ore miners will not win 100% annual price despite tough talks, but an agreement, if reached, should outstrip the 40% expected earlier.
Reuters cited some analysts saying that despite tough talks by the world's big iron ore miners, this will not win them the 100% annual price the spot market suggests, but an agreement, if reached, should outstrip the 40% expected earlier.
Mr James Wilson, a mining analyst for DJ Carmichael said: “There's no reason why the mining companies should feel a need to accept anything less. The alternative is for the mills to buy on the spot market, which is way up on this year's benchmark.”
Vale, Rio Tinto and BHP Billiton are locked in talks with Asian steel mills to set the next annual benchmark price even as ore is increasingly being diverted into spot contracts. They will push steel mills to either accept one of the highest annual price hikes on record or take their chances in a spot market that has more than doubled in the past 12 months.
BHP Billiton offered its clearest indication yet it was looking for a substantial increase in iron ore contract prices when chief executive Marius Kloppers repeatedly highlighted the near 100% gap between last year's benchmark and current forward prices.
[Steel Guru]
12. February. 2010
China’s Baosteel has lifted its steel prices for March delivery by RMB300/ton to RMB600/ton (US$44/ton to US$88/ton).
As market participants expected, Baosteel increased its March-delivery prices by RMB300/ton for HRC products and by RMB300/ton to RMB600/ton for CRC products.
The steel giant early reported a 11 percent profit falling in 2009 year-over-year. And the company keeps its February steel price flat on January basis.
[Yieh news]
12. February. 2010
* Steelmaker keeps full-year outlook but remains cautious.
* Subdued picture echoes mkt leader ArcelorMittal.
* Shares up 4.2 percent.
FRANKFURT - ThyssenKrupp Germany's biggest steelmaker, said its markets would be slow to recover from last year's slump after it pared back costs and pushed through price hikes to record its first profit in four quarters.
Profit in the three months to December easily beat forecasts, sending ThyssenKrupp's shares up 4 percent, but it cautioned that, with the global economic recovery fragile, its customers were still buying mainly to restock inventory rather than in response to rising demand.
The cautious outlook echoed the view of the world's top steelmaker, ArcelorMittal and reflected a blip in the post-recession upturn of Germany, the euro zone biggest economy and ThyssenKrupp's largest market by far, where growth unexpectedly stagnated in the final months of 2009.
ArcelorMittal, a bellwether for heavy industry, said on Wednesday its markets would improve only slowly with higher shipments but lower prices in early 2010 as it issued a profit forecast that fell short of expectations.
ThyssenKrupp said on Friday that underlying pretax profit in its first quarter fell to 237 million euros ($324 million) from a year-ago 249 million, easily beating an average analyst forecast of 56 million in a Reuters poll.
"We think that the ongoing cost savings are the most important driver of the strong results," brokerage Merck Finck said in a note to clients.
ThyssenKrupp said the global steel market's prospects remained subdued.
"In Europe, the NAFTA region and Japan, demand will be higher than in 2009 mainly due to restocking, but there will not yet be any return to the production and demand levels of previous years," it said.
"Not least due to further capacity expansions worldwide, there is a renewed risk - above all in Europe - of rising imports from third countries."
NEW ORDERS, SALES DOWN
The company also felt the impact of economic weakness in Germany, where it generates nearly a third of revenues, with new orders and sales falling by 28 percent and 19 percent, respectively.
German growth stagnated in the final quarter of 2009, statistics office data showed on Friday, following expansions in the two previous quarters that ended a year-long recession.
ThyssenKrupp, which generates 62 percent of revenues in the euro zone, said the European carbon steel flat-rolled market took a turn for the better from the autumn of 2009.
But "this was more a case of gap-filling than a sign of a stronger stockbuilding trend. End-user demand remained slow on the whole, with steel customers still purchasing very cautiously."
Steel prices rallied in the second half of last year on restocking while carmakers, appliance makers and some engineering sectors limped back toward a gradual recovery amidst indications of an uptick in Germany, the world's seventh largest steelmaking nation.
Steel body Eurofer said earlier this month the European steel sector was recovering slowly despite a continued slump in construction, buoyed by an improving outlook for the car and engineering industries.
Among steelmaking peers across the Atlantic, Nucor (NUE.N), U.S. Steel and AK Steel ) expect a gradual recovery from the recession and still face rising raw material costs and other headwinds.
At 1005 GMT ThyssenKrupp shares were up 4.2 percent, outpacing a 0.5 percent rise in the DJ Stoxx basic resources index .SXPP. ArcelorMittal shares rose 0.2 percent.
[Reuters]
11. February. 2010
Manufacturers in China are evading millions of dollars of US anti dumping duties on steel wire products by exporting them via third countries, according to an American industry group.
The US Coalition for Enforcement of Antidumping and Countervailing Duty Orders said it has developed compelling evidence how certain foreign manufacturers in China are evading duties.
It said “In some cases, they shipped the products via third countries and then falsely designating it as the country of origin to evade the duties, a practice termed transhipment.”
It added “In other cases, an inconsequential modification is made to the product in third countries to avoid the duties or false labels displaying a different country of origin are placed on shipments of products actually made in China.”
The coalition named the “third countries” as Vietnam, South Korea, Malaysia, Canada and Mexico. The Hong Kong and Taiwan economies were also accused of being used by the Chinese based manufacturers to send the products to the United States in an apparent bid to evade duties.
The coalition, comprising six companies manufacturing steel wire products, said it had informed the U.S. government and lawmakers on the problem, adding that duty evasions had cost the authorities at least USD 84 million annually and also threatened jobs.
Mr David Libla president of Mid Continent Nail and a coalition member said “These schemes are blatant and purposeful. Not only are they clear evidence of attempts to maintain an unfair advantage in the marketplace, they're also costing taxpayers millions of dollars and reducing job opportunities in this country,.”
[Steel Guru]
11. February. 2010
Steel prices may rise further this year on the back of improved demand and higher input costs of coking coal and iron ore.
Steel Authority of India (SAIL), Tata Steel, Essar Steel and JSW Steel have already hiked prices by Rs 1,500-2,000 a tonne in the last two months.
Prices for the basic grade are ruling at about Rs 30,000 a tonne (excluding excise), which is lower by Rs 10,500 from the all-time high in 2008.
Mr Jayant Acharya, Director, JSW Steel, said the improvement in demand for both flat and long products was expected to continue in the fourth quarter. "Though concerns over the cost push with regard to coal and iron ore remains, we expect to pass on a portion of the rise in input cost to the end-user as demand is still buoyant. Besides, the coal and iron ore beneficiation plant, which went on stream recently, will also ease cost pressure," he added.
Mr Vikram Amin, Executive Director, Essar Steel, said, "While we expect prices to firm up, the key issues that need to be watched are the cost of raw materials, the rate of restocking and capacity utilisation levels."
[thehindubusinessline]
11. February. 2010
As to steel market this year, steel traders' attitudes have huge differences. Some are pessimistic while some choose to stock up.
In futures market, rebar prices in Shanghai have already decreased by around 10% until February 5th. But the spot market suffered more.
A salesperson in Lecong steel market in Foshan City Guangdong province said since they are small traders the rebar sales was lower than 300 tonne per month after January which is used to be around 1000 tonne. He told "This was the hardest year in recent 10 years."
Besides the low sales, spot price is also a problem to traders. Data show that steel prices dropped by CNY 20 per tonne to CNY 60 per tonne in only three days from January 31st to February 3rd. The salesperson said many of their steel products for sale were purchased when the steel prices increasing and some varieties are losing money.
And because of the need to repay the loan and the high inventories, some small traders faces financial difficulties so some of them are selling off stocks in small scale.
Although steel futures and spot market see difficulties, most traders are optimistic about the rebar prices.
Analyst Mr Liu Huiru is positive about the prices and she said no substantial decrease in spot is because of the cost supporting.
Mr Yu Mengguo DM of Jinpeng Futures said his optimism is base on three reasons. Firstly it is normal to have inventories in winter. Secondly both high speed railroad construction and stimulating policies in construction in rural areas will be good demands. Thirdly raw materials are relatively short and the iron ore imports are still needed.
[SteelGuru]
11. February. 2010
Recently, TISCO Stainless Steel continues increasing stainless steel export price, up by U.S.$50 per ton.
After the adjustment, TISCO's 304 CRC is quoted U.S.$2,950 per ton （CIF）, that of 304 HRC for U.S.$2,800 per ton.
As TISCO's main export market, S. Korea's importers think that the export price of TISCO does not have the attraction, adding the demand from S. Korea posts no obvious revival, so the adjustment will not have the apparent impact on them.
Insiders hold that TISCO pays its most attention to the great order of government, no time to work on export market and domestic spot market, so it is probable that TISCO increases export price and narrow down the delivery to domestic market.
Meanwhile, another stainless steel producer, Baosteel also brings up the export price for February. The export price of 304 CR stainless steel coil to S. Korea is U.S.$2,920 per ton (FOB) , HR stainless steel coil for U.S.$2,730 per ton, up by U.S.$20 per ton than last month.
S. Korea's POSCO issued its domestic price for February in the beginning of Feb., the price of 300 series was lifted by 100,000 won per ton (U.S.$85/t), till now, the price of 300 series CRC rises to 34.2mln won per ton, and that of HRC is 3.15mln won per ton.
Another S. Korea's steel enterprise-------Hyundai also released the price for February, the domestic price of 304 series CR stainless steel plate/coil 2mm is upwards by 107,000 won per ton, reaching 3.56mln won per ton.
[Alibaba news]
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