Apr-Jan steel consumption up 7.9%

Steel consumption rose 7.9 per cent to 45.93 million tonne during April-January in the current financial year over the same period a year ago on the back of steady rise in demand from sectors including automobile, white goods and construction.

Steel consumption during the corresponding period a year earlier stood at 42.59 million tonne.

However, domestic steel production rose only 3.3 per cent during the 10 months ended January 2010 and crossed the consumption pattern at 48.81 million tonne over 47.27 million tonnes in the comparable period last year, according to provisional data of the Steel Ministry.

Meanwhile, imports also surged 18.5 per cent to 5.9 million tonnes during the period, thereby increasing the availability of the commodity in the market and putting pressure on domestic prices.

But, exports continued to slide and fell 34.1 per cent to 2.39 million tonne during the reporting period, reminiscent of the fact that the western market is still to recover from the economic crisis of 2008-09.

Leading steel producers like Tata Steel and Rashtriya Ispat Nigam reported 12.4 per cent growth to 4.17 million tonne and 7.6 per cent increase to 2.4 million tonne, respectively, during April-January over the same period previous fiscal.

Production of SAIL, however, declined 6.1 per cent to 7.83 million tonne against 8.34 million tonne in the April-January period previous fiscal.

Moreover, in January alone the country saw steel output rise 4 per cent to 4.96 million tonne over the year-ago period. But SAIL saw output declining 10 per cent at 7.83 lakh tonne in the month against production of 8.70 lakh tonne during the same month a year ago.

However, RINL and Tata Steel saw their January production surging by 67.7 per cent to 2.75 lakh tonnes and 15.4 per cent to 4.65 lakh tonnes, respectively over the corresponding period a year ago.

Steel consumption in January increased by 8.7 per cent to 4.94 million tonne over the same month in 2009.

In January, imports surged 34.2 million tonnes to 7.26 lakh tonne against 5.41 lakh tonne in the same period a year ago. Steel exports dipped by 15.2 per cent to 2.96 lakh tonne from about 3.49 lakh tonne shipped in January 2009.

(Source : Business Standard)

Steel price should stabilise at current levels: Sail

The Steel Authority of India Ltd today said steel prices should stabilise at current levels after hikes in recent months.

"Prices have been raised and we don't see any further rise in steel prices," Steel Authority of India Ltd's (Sail) Chairman and MD S K Roongta said on the sidelines of an international conference on refractory industry.

On February 2, SAIL had raised prices of flat products by Rs 500 per tonne. Recently, Tata Steel's MD, H M Nerurkar, had also indicated that steel prices are likely to stay stable till March.

"Prices of long products had risen sharply in December after which there was some correction and we don't see prices going up again," he said.

Meanwhile, Roongta informed that Sail's 50:50 joint venture, S&T Mining, with Tata Steel has been shortlisted by Coal India Ltd.
"Coal India had invited Expression of Interest and our joint venture, S&T Mining, has been short listed," Roongta added.

Sail and Tata Steel had formed the joint venture in 2008 with an aim to scout for and develop coal mines to secure a key energy source for their respective existing and planned steel capacities.

When asked about International Coal Ventures, the special purpose vehicle formed by several PSUs to acquire coal properties abroad, Roongta said it had made little progress till date.

However, he said, that they have not yet made any decision to exit the joint venture.

(Source : Business Standard)

Tinplate outperforms other CIS steel markets

Recently published official statistics and company results show that tinplate business has been better than other parts of the steel industry in Russia and Kazakstan. Magnitogorsk Iron & Steel Works in Russia produced 212,00 tonnes of tinplate in 2009, down 2% on the previous year, while Kazakhstan’s ArcelorMittal Temirtau produced 201,000 tonnes, an increase of 15.5%. The two companies are the sole producers in the respective countries.

In its fourth quarter report Magnitigorsk noted that production of “high value added products” (including tinplate and other downstream products plus thick plate and CRC) fell by 12% last year while its crude steel output dropped by 20%. Tinplate production in Q4 last year, at 41,000 tonnes, was slightly ahead of the 39,000 tonnes produced in the recession-hit final quarter of 2008, but down on the 59,000 tonnes produced in Q3 2009.

The Republic of Kazakhstan's Agency of Statistics reported a revival in the country’s steel production last year, with crude steel production growing by 2.3% and flat-rolled steel output up 5.5%. The biggest growth rates were recorded in tinplate and galvanized steel (+10.5%). ArcelorMittal Temirtau has three tinning lines with a combined capacity of 375,000 tpy. Apart from supplying CIS markets it is also a major exporter, particularly to Middle East markets.

(Source: ITRI, UK)

Top Tin Producers in 2009

Data collected by ITRI in recent weeks shows diverse trends in refined tin production by leading producers in 2009. Yunnan Tin Company remained the world’s largest producer for the fifth year in a row, although its production declined for a second successive year. Six of the world’s top ten producers experienced a fall in production, due to either their responses to lower world demand and/or raw material supply issues.

The four companies reporting increased output were MSC, Yunnan Chengfeng, EM Vinto and PT Koba Tin. It is likely that the two larger companies were helped mainly by higher volumes of tin for re-refining from Indonesia, while Vinto and Koba had some improvement in concentrate supplies from the Huanuni mine and Koba’s own operations respectively. Vinto also increased its effective capacity by re-conditioning previously idled furnace.

Eight of the world’s top 10 tin producers are ITRI members, including our new members Yunnan Chengfeng. Total refined tin production by all member companies (including our estimate for PT Timah) in 2009 was 229,000 tonnes. This total includes production by the newly established Polish secondary tin refiner Fenix Metals, as well as the ten companies shown in the table. Talison Minerals, another ITRI member, produced no tin in 2009 due to the closure of its tantalum mining operations from which tin is a by-product. The combined output of the twelve ITRI companies accounted for just over 70% of estimated world tin metal production last year.

(Source: ITRI, UK)

EU steel market: first green shoots of recovery

EUROFER’s quarter 1-2010 report on the Economic and Steel Market Outlook 2010-2011 signals that economic momentum in the EU economy should gradually gain further strength this year. Progress will be slow and surrounded by uncertainties; however, the risks are now much more balanced than a year ago.

Also in the steel using sectors the recovery will take hold. Activity in the manufacturing sector will be supported by improving international trade and inventory replenishment. The outlook for the engineering industries and automotive manufacturers has become slightly more upbeat. In contrast, perspectives for the construction sector have darkened, mainly due to a further deterioration in the non-residential sector. On balance, output in the steel using sectors will rise 0.6% in 2010. A further strengthening is expected for 2011 with growth accelerating to 3.5-4%.

EUROFER director general Gordon Moffat: “We are seeing the first green shoots of recovery and there is confidence that this will translate into a further improvement in EU steel market fundamentals”.

Recently, orders and deliveries have risen compared with the depressed levels registered in the final months of 2008 and 1st half of 2009. Low imports and reduced levels of domestic supply have resulted in supply currently being much better aligned with still weak demand levels. Nevertheless, apparent consumption is estimated to have fallen by almost 35% in the whole of 2009.

Low inventories at the start of 2010 will be supportive to market dynamics gradually gaining strength during this year. Any further improvement in demand side fundamentals should trigger a corresponding need to replenish inventories from their current low levels. This will provide the major boost to the 12.5% rise in apparent consumption expected in 2010.

The rebound in real steel consumption expected for 2011 will broaden the basis for growth in apparent consumption.

The import situation remains an issue of concern. So far, rising global steel production has not yet resulted in a significant increase in imports into Europe. But Moffat adds:” if global demand would fail to follow the rising trend in steel output, temporary oversupply elsewhere could lead to import pressure building up in the EU more strongly than currently projected”.

(Source: EUROFER)