NEWS : 22.01.2010
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Steel melting scrap price shown downfall in major places
Magnesium Prices Might Decrease a Bit
Ferrosilicon Prices Show Weak
Chemical Grade Silicon Metal Price Began to Slide
China's NCE to launch scrap futures trading in March
Stronger Korean domestic scrap prices continue
Scrap offer prices to east Asia are not viable, traders say
Ferro-silicon price in Europe rises around €50/tonne
Saudi Arabia scrap prices advance on better domestic demand
Southern European scrap increases in January
Turkish scrap imports hit 14.2m tonnes in eleven months
Chinese imported iron ore prices start to fall
Chinese EMM, SiMn, FeMn export offer prices rise
Chinese FeSi prices slip on slowing demand
Posteel to establish scrap venture in Japan
Scrap prices in Brazil’s Ceará state at R$400/tonne
Chinese manganese prices fall slightly on quiet business
Indian Market : Ferro-alloy price trends diverge
Chinese ferroalloys - Moly drops out of price rally bandwagon
European ferrosilicon prices firming up
Buyers: ferrosilicon market to slow down further slightly
Ferromanganese market slows down
Nickel market remains slow
Larsen & Toubro's Shares Plunge After First Sales Decline in Seven Years ::
Larsen & Toubro Ltd., India’s biggest engineering company, had its biggest fall in six months
after the company reported its first sales decline in seven years and cut its revenue growth
target.
Steel Production in China Rises 14% to Record as Vehicle, Home Sales Soar ::
Crude steel production in China, the largest maker, rose 14 percent to a record in 2009 as
the government’s stimulus spending boosted demand from builders and carmakers.
Indian Market Report: Ferro-alloy price trends diverge::
The December 2009 quarter could turn out to have been a stellar one for local metal
companies, at least in terms of growth numbers. A low base effect, the sharp rally in
commodity prices
Japanese scrap export price to China crosses JPY 30000 FOB
TEX reported that transaction prices of No2 HMS have topped JPY 30,000 per tonne
FOB in ferrous scrap exports out of Japan to China, a high level for the first time in five
months since August 2009.
Japan's ferrous scrap export market for new deals has surged by nearly JPY 3,000 per
tonne in a mere one week since the beginning of 2010. Various buyers in China, South
Korea and Taiwan face rising prices across the main sources of ferrous scrap imports.
As a result, they are under pressure to pay prices close to what sellers quote, a
situation where bids are moving up day by day.
China's metal scrap dealers made bids last week of around USD 355 per tonne CNF for
No2 HMS from Japan. The bids translate into a price level of JPY 30,100 to JPY 30,200
per tonne FOB after a freight rate deduction of USD 27 to USD 28 per tonne at an
exchange rate of USD 1 = JPY 92. Therefore, the yen denominated values of the bids
go beyond JPY 30,000 per tonne FOB.
Japan's ferrous scrap suppliers though have higher price ideas than the Chinese bids.
Besides, many of them tend to hold back on new export deals because they give priority
to working off shipment backlogs under negotiated export contracts. Accordingly, new
contract volumes face slack growth despite an advance in transaction prices. Besides, it
is understood that overseas buyers are compelled to raise bids as they are having a
tough time securing what they require.
As far as South Korea's steelmakers are concerned, companies such as Hyundai Steel
Co, Dongkuk Steel Mill Co, Dongbu Steel Co and SeAH Besteel Corporation are in
continued inquiries for imports of Japanese ferrous scrap. Their bids rose to a level of
JPY 29,000 to JPY 29,500 per tonne FOB for No2 HMS last week.
For its part, SeAH Besteel collected offers of Japanese ferrous scrap on January 12th
2010. Also, Hyundai Steel's purchasing manager is visiting Japan for talks on its new
procurement of Japanese material. In this connection, Japanese suppliers find it
possible to offer what they sell to almost all of South Korea's steelmakers. In Taiwan,
meanwhile, China Steel Corp held its import tender January 11th 2010 to take ferrous
scrap.
Many of market sources expect Japan's ferrous scrap export market for new deals to
continue rising in the immediate future at a time when the USA's domestic ferrous scrap
market is on the upswing. Still, some market sources point out fears that Japan's
ferrous scrap export market may plunge once it peaks out since the current situation
looks bubble like.
Russia’s scrap export down by 23.8% in last November ::
Russia’s scrap export dropped by 23.8 percent to 135,000 tons in November 2009.
Turkey was the top export destination at 42,000 tons, up by 20.5 percent compared to
same period of previous year. Following was Spain at 37,000 tons, a 29.1 percent rise
year-on-year.
The country’s export of scrap totaled 1.85 million tons from January to November 2009,
down by 68.9 percent year-on-year.
Turkey remained the top export destination at 521,000 tons; followings were Spain,
Korea and Netherlands at 401,000 tons, 394,000 tons and 81,000 tons respectively.
American scrap imports up in November 2009 ::
American scrap imports in November of 2009 totaled 1.745 million tons, up by 58.1
percent than the same time of last year and up by 15.4 percent than last month.
American scrap import during the first eleven months rose by 1.4 percent to 20.53
million tons from the same time of last year.
It is estimated that annual import volume would be 22.4 million tons.
Steel melting scrap price shown downfall in major places::
Melting scrap
80:20
HMS
Location
Change
Chennai
0
Hyderabad
0
Kandla
100
Kanpur
-267
Kolkata
0
Mandi
185
Mumbai
200
Rudrapur
0
Change is on 20th January as compared to 19th January 2010
Change is in INR per tonne
Plate cuttings prices surges ::
Product
Grade
Size
Change
Plate cuttings
Rolling
1"
300
Ship Scrap
Melting
Mixed
400
Change is on 20th January as compared to 19th January 2010
Change is in INR per tonne
Pencil ingot price movement in major places ::
Pencil ingot
Location
Change
Ahmedabad
0
Bhiwari
0
Durgapur
-92
Ghaziabad
0
Hyderabad
-1000
Jaipur
100
Jamshedpur
0
Kanpur
-267
Kolkata
0
Mandi
185
Mumbai
400
Muzzafarnagar
0
Nagpur
Raigarh
277
Raipur
-185
Rourkela
-924
Rudrapur
0
Change is on 20th January as compared to 19th January 2010
Change is in INR per tonne
Rebar (TMT) price movement in India ::
TMT
Fe 415
12mm
Location
Change
Ahmedabad
-901
Bangalore
0
Chennai
-520
Delhi
0
Hyderabad
0
Indore
0
Kanpur
-300
Kolkata
0
Mandi
104
Mumbai
450
Raipur
-312
Rudrapur
0
Change is on 20th January as compared to 19th January 2010
Change is in INR per tonne
Sponge iron price up in major places::
Sponge iron
Location
Change
Bellary
0
Kolkata
0
Raigarh
500
Raipur
200
Rourkela
300
Change is on 20th January as compared to 19th January 2010
Change is in INR per tonne
Taiwan scrap imports in October up by 111pct YoY::
It is reported that Taiwan's scrap imports hit 327,000 tonnes in October 2009, up by 111.1%
YoY.
During January to October 2009 period, Taiwan's scrap imports reached 3.04 million tonnes,
down by 42% YoY.
In that 10 months, scrap import from
1. US reached 1.6 million tonnes, accounting for 52.7% in total, down by 37.5% YoY
2. Japan 323,000 tonnes, accounting for 10.6%, up by 64.7% YoY
3. Netherlands 130,000 tonnes, accounting for 4.3%, down by 50.4% YoY
4. Australia 104,000 tonnes, accounting for 3.4%, up by 47.1% YoY
International Ferro Metals production, stocks rise in December 2009 quarter::
A record production figure was chieved in December, at 21,898 tonnes. Both furnaces,
which were suspended in November 2008, are now running at full "Eskom constrained"
capacity
Chinese ferroalloys - Moly drops out of price rally bandwagon::
Molybdenum has dropped out of the bandwagon of price rallies seen in China’s ferro-alloy
markets amid softening domestic demand and a downward western market. The others
remain firm although tight
U.S. ferro-chrome price rise gathers pace::
Ferro-chrome prices in the United States continue to climb higher as demand starts to gather
momentum and a shortage of supply deepens. Stainless steel mills, foundries and service
centers have quickly
Chinese crude steel output in 2009 up by 27pct YoY::
Chinese National Bureau of Statistics announced that China produced 47.66 million tonnes
of crude steel in December, up slightly from 47.26 million tonnes in November but up by
26.6% YoY.
For the full year, China produced 567.84 million tonnes of crude steel up by 13.5% YoY from
2008, when the country's output was 500.48 million tonnes.
*** European ferrosilicon prices firming up
*** European FeMo market still correcting downward
*** Profit-takings on European FeV market sends price wide-ranged
*** Indian FeV market offers rise on good end-user demand
*** Buyers: ferrosilicon market to slow down further slightly
*** Brown fused alumina price to keep stable
*** Canadian ferromolybdenum market sees price increase
*** Ferrovanadium market in the Canada sees increase in demand
*** Replacement costs to push US ferromanganese market higher
*** South American manganese ore traders still lacking material
*** US ferrochrome prices to continue increasing
*** Chinese ferromolybdenum market loose stream slightly
*** Asian buyers cautious to purchase ferrosilicon
*** Buyers in Asia watching brown fused alumina market
*** Quite quiet demand in graphite electrode market
*** Demand for green silicon carbide powder keeps good in Japan
*** Brown fused alumina market stable
*** Silicon carbide grain sands price hits a new high level
*** Coke-made black silicon carbide prices increase
*** Chinese chrome ore market in stalemate
*** Smelters raise spot offers of silicomanganese
*** Ferromanganese market slows down
*** Ferrotungsten price difficult to go higher in China
*** Asian traders show little interest in buying magnesia
*** Heavy snow affects magnesia transportation by sea in North China
*** Bauxite market stable in Asia
*** Ukainian Doneckstal Ltd to increase purchasing volumes of ferroalloy
*** Ferrosilicon export price rises in Russia
*** Nickel market remains slow
*** European ferrosilicon prices firming up
*** European FeMo market still correcting downward
*** Profit-takings on European FeV market sends price wide-ranged
*** Indian FeV market offers rise on good end-user demand
*** Buyers: ferrosilicon market to slow down further slightly
*** Brown fused alumina price to keep stable
*** Canadian ferromolybdenum market sees price increase
*** Ferrovanadium market in the Canada sees increase in demand
*** Canadian cobalt prices remain firm despite low demand
*** Enquiries of titanium sponge getting a little bit more but concluded prices stable
*** Replacement costs to push US ferromanganese market higher
*** South American manganese ore traders still lacking material
*** US ferrochrome prices to continue increasing
*** Chinese ferromolybdenum market loose stream slightly
*** Antimony ingot market still experiencing appreciation
*** Trading slows down in zinc ingot market
*** Asian buyers cautious to purchase ferrosilicon
*** Mingtai Aluminum cuts down production
*** Participants watching lead ingot market
*** Chinese alumina output up by 4.4% year-on-year in 2009
*** Aluminum powder producers cut down production in Henan
*** Buyers in Asia watching brown fused alumina market
*** Fused zirconia prices unchanged
*** Shandong Aluminum’s output at 1.4 million tons in 2009
*** Quite quiet demand in graphite electrode market
*** Demand for green silicon carbide powder keeps good in Japan
*** Brown fused alumina market stable
*** Silicon carbide grain sands price hits a new high level
*** Aluminum scraps price keeps high
*** Some aluminum alloy ingot producers to halt production
*** Lateritic nickel ore market goes flatly
*** Cobalt oxalate price going up further
*** Shangyi Nonferrous’ aluminum alloy project to come on stream in May
*** Coke-made black silicon carbide prices increase
*** Cobalt oxide price keeps going up
*** Cadmium market holds low in India
*** Participants believe tin price to retreat further
*** Cobalt powder price keeps firm
*** Alumina fused zirconia market steady
*** Antimony trioxide prices jumping
*** Magnesium ingot price decline decelerates in Shaanxi
*** Selenium powder suppliers reluctant to sell
*** Little room for copper prices to rise before the Spring Festival
*** Lithium hydroxide price holds firm
*** Manganese flake price decreases a bit
*** Jinhong Industry to suspend copper rod production
*** Panlong Arsenic to start trial production in May
*** Chinese chrome ore market in stalemate
*** Smelters raise spot offers of silicomanganese
Japanese copper smelters settle TC/RC agreement with BHP Billiton ::
It is reported that some Japanese copper smelters have entered to an agreement with
BHP Billiton that 2010 TC/RC will be cut by 38 percent.
The agreement prices were US$46.5/ton. The processing costs of the new fiscal year
are less than US$75 which set in 2009’s contract.
Japanese crude steel production in 2009 falls to 40 year low::
It is reported that Japan's crude steel production in 2009 dropped by 26.3% YoY from the
previous year to 87.53 million tonnes, the lowest level since 1969 and a fall for the second
consecutive year amid the recession.
MMTC says export tax on iron ore causes no effect on exporting ::
India's largest international trading company, MMTC has indicated that the recent
increased export tax on iron ore has not have a negative impact on iron ore exports.
The president of MMTC Sanjiv Batra has told the press that China and India do not hold
a long term agreement together; spot prices agreement should not bring any problems.
If the Chinese importers are taking extra cost because of the increased export tax in
India, new prices could be discussed. Batra also predicts that iron ore spot price will be
up.
Aluminum shipments in US and Canada dip in December
The Metals Activity Report from the Metals Service Center Institute shows that inventories of
aluminum products at metals service centers in the United States and Canada rose slightly
in December as shipments of those products declined seasonally.
December shipments of aluminum products from US service centers totaled 79,100 tons,
16.5% lower than December 2008 shipments. Total US service center aluminum shipments
of 1.04 million tons were 38.4% below 2008 volume. Aluminum inventories at the end of the
year of 279,000 tons were 21.7% lower than a year ago and, at current shipping rates, equal
to a 3.5-month supply.
In Canada, aluminum shipments from metals service centers totaled 7,700 tons in
December, or 20.1% below year-ago volume. Canadian service centers shipped 125,500
tons of aluminum in 2009, a decline of 24.2% from 2008 shipments. The year-end inventory
of aluminum products in Canada was 29,200 tons, 13.1% below a year ago and, at current
shipping rates, equal to a 3.8-month supply.
The Metals Activity Report, based on data from metals service centers in the United States
and Canada, is produced by the Metals Service Center Institute and a third-party
econometrics and strategy firm, McCoy, Scott & Co.
Founded in 1909, the Metals Service Center Institute has more than 375 members operating
from about 1,200 locations in the U.S., Canada, Mexico, and elsewhere in the world.
Together, MSCI members constitute the largest single group of metals purchasers in North
America, amounting each year to more than 55 million tons of steel, aluminum, and other
metals, with about 300,000 manufacturers and fabricators as customers. MSCI’s
membership also includes almost all ferrous and non-ferrous industrial metals producers in
North America. Metals service centers inventory and distribute metals and provide first-stage
fabrication services.
Chinese coal supply gap is huge despite the high production
According to the previous report, China current coal supply gap was nearly 30%, resulting in
the insufficient supply despite China annual production of 3 billion tonnes. If the current
situation continued, it is estimated that the coal will be excavated out in Shandong Province
20 years later.
An insider of the industry told that the coal is still not enough, even if the coal price was CNY
10,000 per tonne in the future. He believed that to change the coal shortage should alter the
extensive economic development mode fundamentally.
Although the Shanxi coal output was only 620 million tonnes down 20 million tonnes over
previous year, coal output broke CNY 3 billion in 2009 up by 12%YoY. It is obviously
erroneous that heavy snow led the coal shortage in the circumstance of the rising of the coal
production, because the coal shortage presented in the same period last year.
In view of this, the elimination of the medium and small coal mines can help control, but it is
unfavorable for the domestic coal supply. China's coal supply is so huge that only large coal
mines can't guarantee the domestic normal demand, so China should relax the restriction to
the medium and small mines with strict management to relieve the coal pressure.
Ukraine ferroalloys output in 2009 falls by 25pct YoY
According to the Association of Ukrainian Ferroalloy Producers, in 2009 Ukraine
registered a decrease of 25.2%YoY in its ferroalloys production to 1.036 million
tonnes.
1.
2.
3.
4.
Silicomanganese output decreased by 15.6%YoY to 741,900 tonnes
Ferromanganese production went down by 64% YoY to 129,400 tonnes
Ferrosilicon output increased by 7.4% YoY to 150,300 tonnes
Metallic manganese production went up by 75.6% YoY to 15,100 tonnes
Chinese coke price stand at USD 420 per tonne FOB
Latest CCCMC Reference Prices for Coke Exports as on January 19th 2010,
based on the average reference prices for coke export transactions concluded in
the previous week stood USD 410 per tonne to USD 420 per tonne on FOB
basis.
The CCCMC reference prices are average prices for coke export transactions
concluded the week prior to issuance date of such reference prices.
The China Chamber of Commerce of Metals, Minera ls and Chemicals Importers
and Exporters (CCCMC for short) is the largest trading association in China.
Issuance Date
High Price
Low Price
2010.01.19
420
410
2010.01.12
420
410
2009.12.29
410
400
2009.12.22
410
400
In USD per tonne
On FOB china basis
The China Chamber of Commerce of Metals, Minerals and Chemicals Importers
and Exporters is the largest trading association in China. The CCCMC reference
prices are average prices for coke export transactions concluded the week prior
to issuance date of such reference prices.