China to withdraw export rebate on baron added HR, wire rod
China will withdraw 5 percent export rebate on baron added hot rolled steel and wire rod since April 1st, according to market source. China imposes 15 percent export tax on normal carbon wire rod while baron-added hot rolled steel is exceptional. It was grouped as alloy steel, which enjoyed free export tax and 5 percent tax rebate for export. For hot rolled steels, baron-added hot rolled steels were benefited by 5 percent tax rebate while that is not the case for normal hot rolled steel export. In order to establish a fair and healthy market, Chinese government has redefined the range of alloy steel. It is believed with increased tax rebate on cold rolled steel, alloy and stainless steel, export market could be rebounded in the near future.
Turkey buys more scrap from America, Europe
Turkish electric furnace mills have purchased the scrap from American and Europe recently; however, it’s said that the future market still remains blurred. Sims not only sold the H1 & H2 (80:20) mixed scrap to Ekinciler at C&F US$220/ton but also sold the H1 & H2 (80:20) mixed scrap, shredded scrap and P&S scrap to Habas and Nursan at C&F US$219~$220/ton, C&F $224~$225/ton and C&F $229~$230/ton, respectively.
Tuesday, March 31, 2009
Friday, March 27, 2009
Daily Steel News - 27 Mar 09
SHFE tables opening bar, rod prices for futures launch today
The Shanghai Futures Exchange (SHFE) has published benchmark prices for rebar and wire rod futures with which trading will be formally launched on 27 March. The opening rebar contract price will be RMB 3,399/tone ($498/t) while wire rods will open at RMB 3,199/t ($468/t). Steel Business Briefing notes that physical spot market prices in Shanghai for 16-25mm HRB400 rebar are prevailing at about RMB 3,250/t with 17% VAT, up by about RMB 80/t since 23 March. Q235 (HPB235) wire rod prices have also increased by some RMB 50/t compared with early this week to RMB 3,220/t, also with VAT.
China's State Council approves tax rebate rises for exports
China's State Council has formally approved a proposal to increase the tax rebates for exports of a range of products including some finished steel items, textiles, non-ferrous metals, petrochemicals and light industrial goods. The new export rebates will take effect on 1 April. Although the State Council did not disclose the extent to which the export rebates on steel will be increased, a source close to the China Iron & Steel Association (CISA) says the new rebates might be lower than those the industry has lobbied for. In early March CISA, which represents 71 mills, petitioned the finance ministry to increase the rebates on cold rolled products to 17% from 5% presently, and those on hot rolled flat products to 13% from zero. However, most traders and mills contacted by Steel Business Briefing remain largely indifferent to the
increased export rebates, saying that without a recovery in global demand, the rebates are unlikely to result in an effective boost to the steel export market.
Scrap suppliers bump up offer prices to east Asia
Scrap suppliers are aiming to hike their offer prices by $20-30/tonne from last week's offers of $230-240/t cfr east Asia for bulk heavy melting scrap (HMS) 1&2 80:20, regional trading sources tell Steel Business Briefing. Importers report receiving new bulk 80:20 offers at $255-265/t cfr this week. These higher-priced offers are buoyed by recent buying by Turkey and improved sentiment for billet. Freight rates have also risen. Importers are generally not keen to book scrap now. "Chinese buyers want to wait," a Chinese trader tells SBB. A week ago Korea's Hyundai Steel booked three bulk cargoes . two from Sims and one from Schnitzer Steel Industries . at $232/t cfr for HMS No.1 basis. It also secured containerised scrap recently at $220/t cfr HMS No.1 basis. Offer prices of containerised 80:20 scrap have been raised to $230-240/t cfr. While traders report that this was recently booked at $230/t cfr Taiwan, buyers in Taiwan are generally bidding at $210-220/t cfr. Japanese H2 grade scrap prices are also rising, with export offers at $230-240/t cfr east Asia including Taiwan, China and Singapore. The last booking heard for H2 grade scrap was at $210-215/t cfr China. Hyundai's latest booking price for H2 grade scrap from Japan was ¥19,800/t ($202/t) fob, up from ¥19,300-19,500/t fob previously. Daehan Steel bid H2 on 26 March at ¥20,000/t fob. Korean trading sources are uncertain if Japanese suppliers would want to supply at this price. "It is hard to get offers. Japanese scrap prices are rising and suppliers want to see if the market moves up some more," a Seoul-based trader says.
ACCC approves Chinalco’s acquisition deal with Rio Tinto
According the report on Wednesday, the Australian Competition and Consumer Competition (ACCC) agreed the US$19.5 billion deal by Chinese state-owned Chinalco’s strategic takeover plan in Rio Tinto.In this deal, Chinalco will acquire stakes in some assets of Rio Tinto which includes iron ore mine and raise its interest in the dual-listed miner from 9 percent to 18 percent.This deal also has raised concerns of iron ore price that may benefit the Chinese steel mills by below competitive price levels. The ACCC concluded that the acquisition should not lower competition substantially under section 50 of the Trade Practices Act 1974. However, ACCC has different point of view from FIRB’s review. FIRB extended its review by 90 days.
Iron ore freight rates down marginally on lack of activity
Capesize freight rates have fallen slightly week-on-week because of inactivity, brokers tell Steel Business Briefing. Tubarão-Rotterdam iron ore movements fell from $8.30/tonne on 20 March to around $8.20/t on 25 March. Tubarão-China rates have also receded slightly from just below $17/t to $16.50/t. West Australia-China shipments are now pegged at $6.90/t, up slightly from last week as a result of ore shipments from BHP Billiton and Rio Tinto, according to one Norwegian broker. The Baltic Dry Index slipped 18% day-on-day on 25 March, partially a result of downward trending Capesize rates. Rates in the Atlantic basin have fallen on slacker demand exacerbated by a number of ballasters from the Far East.
The Shanghai Futures Exchange (SHFE) has published benchmark prices for rebar and wire rod futures with which trading will be formally launched on 27 March. The opening rebar contract price will be RMB 3,399/tone ($498/t) while wire rods will open at RMB 3,199/t ($468/t). Steel Business Briefing notes that physical spot market prices in Shanghai for 16-25mm HRB400 rebar are prevailing at about RMB 3,250/t with 17% VAT, up by about RMB 80/t since 23 March. Q235 (HPB235) wire rod prices have also increased by some RMB 50/t compared with early this week to RMB 3,220/t, also with VAT.
China's State Council approves tax rebate rises for exports
China's State Council has formally approved a proposal to increase the tax rebates for exports of a range of products including some finished steel items, textiles, non-ferrous metals, petrochemicals and light industrial goods. The new export rebates will take effect on 1 April. Although the State Council did not disclose the extent to which the export rebates on steel will be increased, a source close to the China Iron & Steel Association (CISA) says the new rebates might be lower than those the industry has lobbied for. In early March CISA, which represents 71 mills, petitioned the finance ministry to increase the rebates on cold rolled products to 17% from 5% presently, and those on hot rolled flat products to 13% from zero. However, most traders and mills contacted by Steel Business Briefing remain largely indifferent to the
increased export rebates, saying that without a recovery in global demand, the rebates are unlikely to result in an effective boost to the steel export market.
Scrap suppliers bump up offer prices to east Asia
Scrap suppliers are aiming to hike their offer prices by $20-30/tonne from last week's offers of $230-240/t cfr east Asia for bulk heavy melting scrap (HMS) 1&2 80:20, regional trading sources tell Steel Business Briefing. Importers report receiving new bulk 80:20 offers at $255-265/t cfr this week. These higher-priced offers are buoyed by recent buying by Turkey and improved sentiment for billet. Freight rates have also risen. Importers are generally not keen to book scrap now. "Chinese buyers want to wait," a Chinese trader tells SBB. A week ago Korea's Hyundai Steel booked three bulk cargoes . two from Sims and one from Schnitzer Steel Industries . at $232/t cfr for HMS No.1 basis. It also secured containerised scrap recently at $220/t cfr HMS No.1 basis. Offer prices of containerised 80:20 scrap have been raised to $230-240/t cfr. While traders report that this was recently booked at $230/t cfr Taiwan, buyers in Taiwan are generally bidding at $210-220/t cfr. Japanese H2 grade scrap prices are also rising, with export offers at $230-240/t cfr east Asia including Taiwan, China and Singapore. The last booking heard for H2 grade scrap was at $210-215/t cfr China. Hyundai's latest booking price for H2 grade scrap from Japan was ¥19,800/t ($202/t) fob, up from ¥19,300-19,500/t fob previously. Daehan Steel bid H2 on 26 March at ¥20,000/t fob. Korean trading sources are uncertain if Japanese suppliers would want to supply at this price. "It is hard to get offers. Japanese scrap prices are rising and suppliers want to see if the market moves up some more," a Seoul-based trader says.
ACCC approves Chinalco’s acquisition deal with Rio Tinto
According the report on Wednesday, the Australian Competition and Consumer Competition (ACCC) agreed the US$19.5 billion deal by Chinese state-owned Chinalco’s strategic takeover plan in Rio Tinto.In this deal, Chinalco will acquire stakes in some assets of Rio Tinto which includes iron ore mine and raise its interest in the dual-listed miner from 9 percent to 18 percent.This deal also has raised concerns of iron ore price that may benefit the Chinese steel mills by below competitive price levels. The ACCC concluded that the acquisition should not lower competition substantially under section 50 of the Trade Practices Act 1974. However, ACCC has different point of view from FIRB’s review. FIRB extended its review by 90 days.
Iron ore freight rates down marginally on lack of activity
Capesize freight rates have fallen slightly week-on-week because of inactivity, brokers tell Steel Business Briefing. Tubarão-Rotterdam iron ore movements fell from $8.30/tonne on 20 March to around $8.20/t on 25 March. Tubarão-China rates have also receded slightly from just below $17/t to $16.50/t. West Australia-China shipments are now pegged at $6.90/t, up slightly from last week as a result of ore shipments from BHP Billiton and Rio Tinto, according to one Norwegian broker. The Baltic Dry Index slipped 18% day-on-day on 25 March, partially a result of downward trending Capesize rates. Rates in the Atlantic basin have fallen on slacker demand exacerbated by a number of ballasters from the Far East.
Thursday, March 26, 2009
Daily Steel News - 26 Mar 09
Billet import prices rise in SE Asia
Offer prices of billet imports to Southeast Asia have risen by $10-20/tonne cfr since a week ago. Russian and Ukrainian billet offers are now prevailing at $360-370/t cfr, while those from the region are higher priced. Mills from Taiwan are aiming for an export price of $370/t fob, up from $350/t fob 2-3 weeks ago. A Taipei trader explains that a recent hike in domestic scrap prices and the strengthening of the Taiwan dollar against its US counterpart are the main reasons for higher-priced offers from Taiwan. Malaysian mills are indicating an offer price of $390/t fob. Around 25,000 tonnes of Black Sea billet for end-April
shipment was booked last week at $360/t cfr Philippines, traders tell SBB. "Buyers do not feel that any price increase can be sustained because demand for long products is very weak," a trader in Singapore notes.
Vietnam raises import duty on billet, longs and coils
Vietnam's ministry of finance on 25 March decided to raise the import duty on billet from 5% to 8% and on construction long products from 12% to 15%. The import duty on cold rolled coil will be raised from 7% to 8%, and that on coated steel products from 12% to 13%. The higher duties will take ffect from 1 April. Local billet producers were lobbying for a higher duty of around 15% on billet, as previously reported by SBB. But the rerolling mills, which lack upstream steelmaking facilities, wanted the 5% import duty on billet to remain unchanged. "The ministry of finance made its decision based on the interests of both the producers and the end-users," a Hanoi-based steel source tell SBB. Vietnam is dependent on foreign billet. Last year, it imported nearly 2.2m tonnes of billet. There is no change in the duty for imports from Asean countries under the Asean Free Trade Area. The import duty on billet from Asean countries is 5% and 0% for long products with equal or more than 40% content from an Asean country.
Scrap prices edge higher on more Turkish buying
For HMS 1&2 80:20 prices for latest transactions are $225-230/tonne cfr from the EU and the US, a $5-10/t increase. HMS 1&2 70:30 prices are quoted between $220-222/t cfr, which is $15-17/t higher than last week. A3 grade scrap prices rose by $20/t to $225-230/t cfr from the CIS. Turkish producers say that the reasons of recent activities are rebar purchases from Dubai and Egypt and the fact that scrap stocks are about to be exhausted. One Turkish player says that these transactions will bring more price increases in short term, but this will be just a spike and will not last long. After these trades Turkish mills will withdraw from the market again.In the domestic market prices have stabilised after three decreases in March. Currently local scrap prices are between TL 300-360/t ($181-217/t), SBB learns.
Offer prices of billet imports to Southeast Asia have risen by $10-20/tonne cfr since a week ago. Russian and Ukrainian billet offers are now prevailing at $360-370/t cfr, while those from the region are higher priced. Mills from Taiwan are aiming for an export price of $370/t fob, up from $350/t fob 2-3 weeks ago. A Taipei trader explains that a recent hike in domestic scrap prices and the strengthening of the Taiwan dollar against its US counterpart are the main reasons for higher-priced offers from Taiwan. Malaysian mills are indicating an offer price of $390/t fob. Around 25,000 tonnes of Black Sea billet for end-April
shipment was booked last week at $360/t cfr Philippines, traders tell SBB. "Buyers do not feel that any price increase can be sustained because demand for long products is very weak," a trader in Singapore notes.
Vietnam raises import duty on billet, longs and coils
Vietnam's ministry of finance on 25 March decided to raise the import duty on billet from 5% to 8% and on construction long products from 12% to 15%. The import duty on cold rolled coil will be raised from 7% to 8%, and that on coated steel products from 12% to 13%. The higher duties will take ffect from 1 April. Local billet producers were lobbying for a higher duty of around 15% on billet, as previously reported by SBB. But the rerolling mills, which lack upstream steelmaking facilities, wanted the 5% import duty on billet to remain unchanged. "The ministry of finance made its decision based on the interests of both the producers and the end-users," a Hanoi-based steel source tell SBB. Vietnam is dependent on foreign billet. Last year, it imported nearly 2.2m tonnes of billet. There is no change in the duty for imports from Asean countries under the Asean Free Trade Area. The import duty on billet from Asean countries is 5% and 0% for long products with equal or more than 40% content from an Asean country.
Scrap prices edge higher on more Turkish buying
For HMS 1&2 80:20 prices for latest transactions are $225-230/tonne cfr from the EU and the US, a $5-10/t increase. HMS 1&2 70:30 prices are quoted between $220-222/t cfr, which is $15-17/t higher than last week. A3 grade scrap prices rose by $20/t to $225-230/t cfr from the CIS. Turkish producers say that the reasons of recent activities are rebar purchases from Dubai and Egypt and the fact that scrap stocks are about to be exhausted. One Turkish player says that these transactions will bring more price increases in short term, but this will be just a spike and will not last long. After these trades Turkish mills will withdraw from the market again.In the domestic market prices have stabilised after three decreases in March. Currently local scrap prices are between TL 300-360/t ($181-217/t), SBB learns.
Wednesday, March 25, 2009
Daily Steel News - 25 Mar 09
Shanghai to launch steel futures trading on 27 March
Shanghai Futures Exchange (SHFE) will formally launch futures trading in rebar and wire rod on 27 March. The initial trading months will be September 2009 through March 2010. The exchange is likely to levy an 8% fee on each contract traded however. Lot sizes will be 10 tonnes. SHFE registered steel brands for Rebar Wire rod
Shougang Shougang
Shagang Shagang
Maanshan Iron & Steel Maanshan Iron & Steel
Xinxing Ductile Pipe Hunan Valin Steel Group
Hunan Valin Steel Group Rizhao Iron & Steel
Rizhao Iron & Steel Haixin Iron & Steel
Haixin Iron & Steel Jiyuan Iron & Steel
Pingxiang Iron & Steel Pingxiang Iron & Steel
Jiangsu Yonggang Group Jiangsu Yonggang Group
Rio sees iron ore price cut, says long-term demand strong
Rio Tinto has acknowledged that the iron ore benchmark price for 2009-10 will see a "downward adjustment" "Iron ore, unlike many other commodities, is as close to a staple as there is," Walsh told an iron ore conference in Perth on Tuesday. "You simply cannot build railway systems on the scale China envisages without steel and therefore iron ore." Speaking about the current iron ore negotiation process, Walsh said each miner had its own "benchmark" system. Rio's could include "hybrid and flexible response contracts." He played down the potential influence of Chinalco in the talks if the Chinese company is successful in obtaining an 18% stake in Rio, and 15% interest in Hamersley Iron. "Rio Tinto negotiated the highest ever price increase with Baosteel last year . at the very time when our shareholder registry demonstrated the largest single shareholder was Chinalco," Walsh said. He said the "strategic alliance" between Rio and Chinalco opened up the prospect of expansion that the miner would not otherwise have. "They include exploration through China, a major iron ore province we believe is vastly under-explored,"
Shanghai Futures Exchange (SHFE) will formally launch futures trading in rebar and wire rod on 27 March. The initial trading months will be September 2009 through March 2010. The exchange is likely to levy an 8% fee on each contract traded however. Lot sizes will be 10 tonnes. SHFE registered steel brands for Rebar Wire rod
Shougang Shougang
Shagang Shagang
Maanshan Iron & Steel Maanshan Iron & Steel
Xinxing Ductile Pipe Hunan Valin Steel Group
Hunan Valin Steel Group Rizhao Iron & Steel
Rizhao Iron & Steel Haixin Iron & Steel
Haixin Iron & Steel Jiyuan Iron & Steel
Pingxiang Iron & Steel Pingxiang Iron & Steel
Jiangsu Yonggang Group Jiangsu Yonggang Group
Rio sees iron ore price cut, says long-term demand strong
Rio Tinto has acknowledged that the iron ore benchmark price for 2009-10 will see a "downward adjustment" "Iron ore, unlike many other commodities, is as close to a staple as there is," Walsh told an iron ore conference in Perth on Tuesday. "You simply cannot build railway systems on the scale China envisages without steel and therefore iron ore." Speaking about the current iron ore negotiation process, Walsh said each miner had its own "benchmark" system. Rio's could include "hybrid and flexible response contracts." He played down the potential influence of Chinalco in the talks if the Chinese company is successful in obtaining an 18% stake in Rio, and 15% interest in Hamersley Iron. "Rio Tinto negotiated the highest ever price increase with Baosteel last year . at the very time when our shareholder registry demonstrated the largest single shareholder was Chinalco," Walsh said. He said the "strategic alliance" between Rio and Chinalco opened up the prospect of expansion that the miner would not otherwise have. "They include exploration through China, a major iron ore province we believe is vastly under-explored,"
Thursday, March 19, 2009
Daily Steel News - 19 Mar 09
EU’s scrap market weakens
EU’s scrap market has weakened in line with sluggish finished product market. Presently, UK’s ports and Rotterdam offer FOB US$205~$210/ton and FOB US$210~$215/ton for H1 & H2 (80:20) mixed scarp, which are US$5~10/ton lower than last week. Besides, France and Germany quote CIF US$225~$230/ton for shredded scarp, which is same as last week.
American scrap export market stagnates
With the exit of the Far Eastern suppliers, Turkey’s mills gradually fading out of the U.S. steel scrap market to the CIS market. The U.S.’ scrap processing plants are facing the problem of digesting the high inventory. In addition, the U.S. steelmakers have cut the production by 50 percent; exporters are currently in a worrying situation as foreign demand is very low. Currently, the U.S. east coast quotation of shredded steel scrap exports to Turkey is US$220/ton CFR Turkey, but Turkey buyers still seems look forward to a lower price on the transaction.
Korea buys scrap from Japan
Dongkok Steel, SeAH Besteel and Posco started to purchase Japanese scrap in March, to be delivered in March and April. Japanese H2 scrap price was at FOB ￥17,800~18,200/ton at the beginning of March while the new scrap price was ￥20,000~21,000/ton. The scrap prices for H2 and new were 290,000~30,000 won/ton and 330,000~350,000 won/ton, respectively, 70,000 won/ton lower than Korean domestic market price. In view of the exchange trend, it is possible that the price will continue to fall.
Japanese H2 scrap average prices down
HMS2 scrap average price has dropped by ￥1,522/ton to ￥16,288/ton in the Kanto region, middle part, and Kansai region.Among them, H2 scrap price dropped by ￥2,333/ton to ￥16,917/ton in the Kanto region; H2 scrap price at ￥15,380/ton in the middle part, down by ￥900/ton; ￥16,567/ton in the Kansai region, down by ￥1,333/ton compared to last week.
EU’s scrap market has weakened in line with sluggish finished product market. Presently, UK’s ports and Rotterdam offer FOB US$205~$210/ton and FOB US$210~$215/ton for H1 & H2 (80:20) mixed scarp, which are US$5~10/ton lower than last week. Besides, France and Germany quote CIF US$225~$230/ton for shredded scarp, which is same as last week.
American scrap export market stagnates
With the exit of the Far Eastern suppliers, Turkey’s mills gradually fading out of the U.S. steel scrap market to the CIS market. The U.S.’ scrap processing plants are facing the problem of digesting the high inventory. In addition, the U.S. steelmakers have cut the production by 50 percent; exporters are currently in a worrying situation as foreign demand is very low. Currently, the U.S. east coast quotation of shredded steel scrap exports to Turkey is US$220/ton CFR Turkey, but Turkey buyers still seems look forward to a lower price on the transaction.
Korea buys scrap from Japan
Dongkok Steel, SeAH Besteel and Posco started to purchase Japanese scrap in March, to be delivered in March and April. Japanese H2 scrap price was at FOB ￥17,800~18,200/ton at the beginning of March while the new scrap price was ￥20,000~21,000/ton. The scrap prices for H2 and new were 290,000~30,000 won/ton and 330,000~350,000 won/ton, respectively, 70,000 won/ton lower than Korean domestic market price. In view of the exchange trend, it is possible that the price will continue to fall.
Japanese H2 scrap average prices down
HMS2 scrap average price has dropped by ￥1,522/ton to ￥16,288/ton in the Kanto region, middle part, and Kansai region.Among them, H2 scrap price dropped by ￥2,333/ton to ￥16,917/ton in the Kanto region; H2 scrap price at ￥15,380/ton in the middle part, down by ￥900/ton; ￥16,567/ton in the Kansai region, down by ￥1,333/ton compared to last week.
Wednesday, March 18, 2009
Daily Steel News - 18 Mar 09
Vietnamese steelmakers call for higher import taxes
Vietnamese domestic billet manufacturers: Dinh Vu Steel Company, Van Loi Steel Company, Hoa Phat Company, and Hung Yen Metal Company sent a joint statement to the government requesting that the steel import duty be raised to 5 to 17 percent due to oversupply and weak demand in the domestic market.Vietnam’s domestic production is estimated to hit 5.5 million tons this year. However, domestic sales declined by 29 percent to 433,000 tons in the first two years. Vietnam’s prices have fallen in line with dropping global steel prices. Current billet inventories reached 450,000 tons, which can meet demand for March and April.
Vietnamese domestic billet manufacturers: Dinh Vu Steel Company, Van Loi Steel Company, Hoa Phat Company, and Hung Yen Metal Company sent a joint statement to the government requesting that the steel import duty be raised to 5 to 17 percent due to oversupply and weak demand in the domestic market.Vietnam’s domestic production is estimated to hit 5.5 million tons this year. However, domestic sales declined by 29 percent to 433,000 tons in the first two years. Vietnam’s prices have fallen in line with dropping global steel prices. Current billet inventories reached 450,000 tons, which can meet demand for March and April.
Tuesday, March 17, 2009
Daily Steel News - 17 Mar 09
Weakness in imported rebar continues in East Asia
Spot prices for rebar imported into East Asia are moving close to $400/tonne cfr. Regional traders report that 10,000 tonnes or more of Taiwan-origin rebar were booked at $410/tonne cfr Hong Kong. Offers to Singapore were heard at around $420-430/t cfr last week, with bookings made at $425-430/t cfr for Korean and Turkish material. Buyers in Singapore are aiming to book at around $400/t cfr. "Prices are falling because of weak scrap and billet prices," a Taipei trader says. Japanese H2 grade scrap is being booked at $200-210/t cfr levels in north east Asia. Some traders tell Steel Business Briefing that rebar prices will dip under $400/t cfr by the end of this month because there is no support to prevent prices from falling further. "Demand is just not there. Buyers just want to wait and see," a Singapore trader says, adding that high-priced inventories still remain in warehouses. Others say that the continued practice of traders to lower prices to induce bids is depressing market sentiment. "It's hard to see where genuine buying (prices) at the moment," a trader says. "Prices are coming down. I am telling my buyers to book on a needs-only basis," another says. The last concluded price for rebar was at $440/t cfr Singapore for Korean material and Turkish-origin rebar at around $420/tonne cfr Hong Kong
Chinese H-beam producers cut output by 30% till June
Maanshan Iron & Steel (Magang), Laiwu Iron & Steel (Laigang) and Jinxi Iron & Steel (Jinxi) have agreed to cut production of heavy H-beam sections by at least 30% from April until June, Steel Business Briefing confirms with mill and market sources. A source with Jinxi says the mills' collective production cut will amount to more than 100,000 tonnes/month. The three H-beam producers also reached a consensus at a meeting last week to stabilise ex-works prices for heavy beams by establishing a "bottom price" of RMB 3,500/tonne with VAT ($512/t). However, this may be difficult to achieve, SBB is told. Magang's March ex-works price for 350x350mm is
RMB3,686/t with VAT. Magang compensates its agents RMB 420/t for early March deliveries, eaning the actual price will have breached the mills' bottom line of RMB 3,500/t. SBB is told by a mill source that the mills agreed to abolish the compensation system and if traders want to be profitable they must sell above the ex-works price. As a result, Shanghai traders have raised their offers considerably for heavy H-beams, such as 350x350mm, by RMB 300-350/t to about RMB 3,450-3,500/t. Prices for light H-beams, such as 200x200mm, have also been lifted by RMB 130-150/t to RMB 3,260-3,300/t. All prices include VAT. "Both traders and mills intend to increase their prices, but it's the traders who are taking on the most risk as people weren't buying at cheaper prices," a Shanghai trader says. He doubts whether the measures taken by mills will have any positive effect on the market.
H-beam import prices spiral down in SE Asia
Asian steel traders have been stunned by an offer last week to supply Italian-origin imperial sized H-beams at the base price $550/tonne cfr Singapore for April/May shipment. The last concluded bookings about a week ago for H-beams produced by regular Asian suppliers including Taiwanese and Korean mills were at $630-650/t cfr. Offer prices are now around $610-630/t cfr, mill and trading sources tell Steel Business Briefing. Limited transactions were taking place at $650-680/t cfr Southeast Asia three weeks ago. "This low-priced offer is causing fear in the market. Certain mill suppliers are on red alert," a trader in Singapore says. A Taiwanese trader says that, while he agrees that the offer was alarming, it was a spot offer and buyers are wary about buying H-beams from non-regular suppliers. "Delivery and performance is important, especially since buyers are booking for their projects and not buying to accumulate stocks. It is unclear when the Italian material will arrive because orders will have to be combined to make a shipment out from Europe," he explains. SBB understands that banks are also not giving credit to buyers who want to buy forward. "The Italian offer for H-beam is coming from a long way. It doesn't worry us," a representative from Northeast Asian mill tells SBB. Regional mills have been making production cuts in response to weaker demand, he adds. Metric-sized H-beams from China are reportedly being offered at $490/t cfr Vietnam, down from the quoted $600/t cfr levels heard in early February.
Spot prices for rebar imported into East Asia are moving close to $400/tonne cfr. Regional traders report that 10,000 tonnes or more of Taiwan-origin rebar were booked at $410/tonne cfr Hong Kong. Offers to Singapore were heard at around $420-430/t cfr last week, with bookings made at $425-430/t cfr for Korean and Turkish material. Buyers in Singapore are aiming to book at around $400/t cfr. "Prices are falling because of weak scrap and billet prices," a Taipei trader says. Japanese H2 grade scrap is being booked at $200-210/t cfr levels in north east Asia. Some traders tell Steel Business Briefing that rebar prices will dip under $400/t cfr by the end of this month because there is no support to prevent prices from falling further. "Demand is just not there. Buyers just want to wait and see," a Singapore trader says, adding that high-priced inventories still remain in warehouses. Others say that the continued practice of traders to lower prices to induce bids is depressing market sentiment. "It's hard to see where genuine buying (prices) at the moment," a trader says. "Prices are coming down. I am telling my buyers to book on a needs-only basis," another says. The last concluded price for rebar was at $440/t cfr Singapore for Korean material and Turkish-origin rebar at around $420/tonne cfr Hong Kong
Chinese H-beam producers cut output by 30% till June
Maanshan Iron & Steel (Magang), Laiwu Iron & Steel (Laigang) and Jinxi Iron & Steel (Jinxi) have agreed to cut production of heavy H-beam sections by at least 30% from April until June, Steel Business Briefing confirms with mill and market sources. A source with Jinxi says the mills' collective production cut will amount to more than 100,000 tonnes/month. The three H-beam producers also reached a consensus at a meeting last week to stabilise ex-works prices for heavy beams by establishing a "bottom price" of RMB 3,500/tonne with VAT ($512/t). However, this may be difficult to achieve, SBB is told. Magang's March ex-works price for 350x350mm is
RMB3,686/t with VAT. Magang compensates its agents RMB 420/t for early March deliveries, eaning the actual price will have breached the mills' bottom line of RMB 3,500/t. SBB is told by a mill source that the mills agreed to abolish the compensation system and if traders want to be profitable they must sell above the ex-works price. As a result, Shanghai traders have raised their offers considerably for heavy H-beams, such as 350x350mm, by RMB 300-350/t to about RMB 3,450-3,500/t. Prices for light H-beams, such as 200x200mm, have also been lifted by RMB 130-150/t to RMB 3,260-3,300/t. All prices include VAT. "Both traders and mills intend to increase their prices, but it's the traders who are taking on the most risk as people weren't buying at cheaper prices," a Shanghai trader says. He doubts whether the measures taken by mills will have any positive effect on the market.
H-beam import prices spiral down in SE Asia
Asian steel traders have been stunned by an offer last week to supply Italian-origin imperial sized H-beams at the base price $550/tonne cfr Singapore for April/May shipment. The last concluded bookings about a week ago for H-beams produced by regular Asian suppliers including Taiwanese and Korean mills were at $630-650/t cfr. Offer prices are now around $610-630/t cfr, mill and trading sources tell Steel Business Briefing. Limited transactions were taking place at $650-680/t cfr Southeast Asia three weeks ago. "This low-priced offer is causing fear in the market. Certain mill suppliers are on red alert," a trader in Singapore says. A Taiwanese trader says that, while he agrees that the offer was alarming, it was a spot offer and buyers are wary about buying H-beams from non-regular suppliers. "Delivery and performance is important, especially since buyers are booking for their projects and not buying to accumulate stocks. It is unclear when the Italian material will arrive because orders will have to be combined to make a shipment out from Europe," he explains. SBB understands that banks are also not giving credit to buyers who want to buy forward. "The Italian offer for H-beam is coming from a long way. It doesn't worry us," a representative from Northeast Asian mill tells SBB. Regional mills have been making production cuts in response to weaker demand, he adds. Metric-sized H-beams from China are reportedly being offered at $490/t cfr Vietnam, down from the quoted $600/t cfr levels heard in early February.
Monday, March 16, 2009
Daily Steel News - 16 Mar 09
Brazil's iron ore exports drop in January
Brazil exported 17.515 million tons of iron ore in January, dropping by 28.6 percent compared to the same period of last year. China was the biggest importer of iron ore from Brazil at 6.446 million tons, down by 25.7 percent year-on-year. Switzerland’s iron ore shipments from Brazil totaled 4.301 million tons, up by 29 times compared to the same period of last year. Besides, Japan occupied 2.042 million tons, Korea 1.413 million tons, and Germany 906,000 tons.
Europe drops rebar export price to Africa
In order to compete with the Turkish mills, EU had no choice but to cut the rebar price for April shipments to US$400-420/ton FOB, down by US$30/ton on the previous price. Thanks to the strong demand, currently, North Africa and West Africa is the only active market, not like the other areas shocked by the global financial crisis.
Brazil exported 17.515 million tons of iron ore in January, dropping by 28.6 percent compared to the same period of last year. China was the biggest importer of iron ore from Brazil at 6.446 million tons, down by 25.7 percent year-on-year. Switzerland’s iron ore shipments from Brazil totaled 4.301 million tons, up by 29 times compared to the same period of last year. Besides, Japan occupied 2.042 million tons, Korea 1.413 million tons, and Germany 906,000 tons.
Europe drops rebar export price to Africa
In order to compete with the Turkish mills, EU had no choice but to cut the rebar price for April shipments to US$400-420/ton FOB, down by US$30/ton on the previous price. Thanks to the strong demand, currently, North Africa and West Africa is the only active market, not like the other areas shocked by the global financial crisis.
Friday, March 13, 2009
Daily Steel News - 13 Mar 09
Shagang cuts rebar and wire rod prices again
Eastern Chinese steelmaker Shagang announced prices for 16-25mm HRB335 rebar at RMB 3,350/t ($490/t) and 6.5mm wire rod prices to RMB 3,400/t. The low price cut is further evidence that market demand continues to trend downwards. SBB notes that Shanghai rebar prices have dipped again, by RMB 30/t or more, on prevailing offers last week of about RMB 3,280-3,290/t ($483/t). All prices include 17% VAT.
Eastern Chinese steelmaker Shagang announced prices for 16-25mm HRB335 rebar at RMB 3,350/t ($490/t) and 6.5mm wire rod prices to RMB 3,400/t. The low price cut is further evidence that market demand continues to trend downwards. SBB notes that Shanghai rebar prices have dipped again, by RMB 30/t or more, on prevailing offers last week of about RMB 3,280-3,290/t ($483/t). All prices include 17% VAT.
Thursday, March 12, 2009
Daily Steel News - 12 Mar 09
Erdemir says no recovery in demand
The board chairman of Erdemir, the biggest steel manufacturer in Turkey said on Tuesday that there is no sign of any resurrection of steel demand and that the collapsed demand wouldn’t recover in a short period time. He also said that it will take about five years to return to the past golden days, in regard to the demand levels in 2007 and 2008. Global steel demand and prices have dropped sharply since the metaphase of 2008, causing production cuts on a global scale. Global crude steel output has dropped to 1.33 billion tons from 1.345 billion tons in 2007.
The board chairman of Erdemir, the biggest steel manufacturer in Turkey said on Tuesday that there is no sign of any resurrection of steel demand and that the collapsed demand wouldn’t recover in a short period time. He also said that it will take about five years to return to the past golden days, in regard to the demand levels in 2007 and 2008. Global steel demand and prices have dropped sharply since the metaphase of 2008, causing production cuts on a global scale. Global crude steel output has dropped to 1.33 billion tons from 1.345 billion tons in 2007.
Wednesday, March 11, 2009
Daily Steel News - 11 Mar 09
High tensile deformed steel bars from Thailand due to arrive into Malaysia via Bkt Kayu Hitam Border
A steel bars importer which was nominated by MBAM to import steel bars sometime in Nov 08 has successfully obtained certificate of approval from CIDB for the importation of deformed steel bars into Malaysia.
LME Mediterranean billet price hits all-time low
Mediterranean cash buyer prices hit $250/tonne on 9 March, down around $40/t over the course of a week and a new low point for the one-year old contract. Three-month buyer prices also fell from around $290/t to $250/t from 3 March to 9 March, according to the exchange. One LME member says the billet contract "took a bit of a belting because of a lack of liquidity," adding that "we've got reasonably large buy orders below $250/t and as soon as the price creeps up people are cashing out." The fizzling out of the "Chinese rebound" has also contributed to downward sentiment, traders tell SBB, but they do not believe prices will remain this low for long.
Dubai steel market extremely slow
Rebar is priced around AED 1,750-1,800/t ($476-490/t), with lower prices available in the market, and demand is reported to be extremely slow.
A steel bars importer which was nominated by MBAM to import steel bars sometime in Nov 08 has successfully obtained certificate of approval from CIDB for the importation of deformed steel bars into Malaysia.
LME Mediterranean billet price hits all-time low
Mediterranean cash buyer prices hit $250/tonne on 9 March, down around $40/t over the course of a week and a new low point for the one-year old contract. Three-month buyer prices also fell from around $290/t to $250/t from 3 March to 9 March, according to the exchange. One LME member says the billet contract "took a bit of a belting because of a lack of liquidity," adding that "we've got reasonably large buy orders below $250/t and as soon as the price creeps up people are cashing out." The fizzling out of the "Chinese rebound" has also contributed to downward sentiment, traders tell SBB, but they do not believe prices will remain this low for long.
Dubai steel market extremely slow
Rebar is priced around AED 1,750-1,800/t ($476-490/t), with lower prices available in the market, and demand is reported to be extremely slow.
Tuesday, March 10, 2009
Daily Steel News - 10 Mar 09
Thailand's steel prices continue to dip Thailand’s steel price has continued to dip.
This has resulted in a big impact on the real estate and building materials companies; around 3,000 companies have gone bankrupt. The steel price is dropping by a wide margin at present. It is estimated that the total market value of building industry this year may be reduced from the THB650 billion of 2008 to THB320 billion, signifying a decrease of 50 percent.
Turkey’s section steel prices decrease.
Turkey’s section steel price fell by US$40/ton, to US$450~460/ton
U.S. scrap prices continue to fall
The U.S. scrap prices continued to fall since early February.
U.S. busheling scrap price reached US$197~207/ton, shredded steel scrap prices hit US$187~197/ton, while H1 scrap was priced at US$162~172/ton.
Brazil’s iron ore output to drop by 30% in 2009
Brazil’s National Department of Mineral Production (DNPM) stated on Monday that the iron ore output of whole nation would drop by 30 percent for this year.
This has resulted in a big impact on the real estate and building materials companies; around 3,000 companies have gone bankrupt. The steel price is dropping by a wide margin at present. It is estimated that the total market value of building industry this year may be reduced from the THB650 billion of 2008 to THB320 billion, signifying a decrease of 50 percent.
Turkey’s section steel prices decrease.
Turkey’s section steel price fell by US$40/ton, to US$450~460/ton
U.S. scrap prices continue to fall
The U.S. scrap prices continued to fall since early February.
U.S. busheling scrap price reached US$197~207/ton, shredded steel scrap prices hit US$187~197/ton, while H1 scrap was priced at US$162~172/ton.
Brazil’s iron ore output to drop by 30% in 2009
Brazil’s National Department of Mineral Production (DNPM) stated on Monday that the iron ore output of whole nation would drop by 30 percent for this year.
Friday, March 6, 2009
Daily Steel News - 6 Mar 09
Lower-priced billet offers fail to entice SE Asian buyers
Asian buyers are generally staying away from the billet import market because of weak finished steel prices. Offer prices from the CIS are generally quoted at $360-370/tonne cfr, down by $10-20/t cfr from a week ago. A Thai trader has heard of a firm offer of Black Sea billet at $350/t cfr Thailand but it was not taken up by local importers. An offer of Black Sea billet was also heard at $355/t cfr Vietnam. Offers from Taiwan at $370/t cfr, despite shorter time deliveries, are not finding buyers either. He has heard of Russian billet booked at around $360/t cfr Philippines recently.
SE Asian deep sea scrap importers, suppliers in stand-off
Offers of bulk scrap are prevailing at $260-270/tonne cfr for HMS 1&2 80:20 or No.1 HMS, unchanged from a week ago. However, buyers in the region are aiming to book at $230-240/t cfr levels, traders tell SBB.
China's steel inventories exceed 10m tonnes
Steel inventories in China have reached a record high as total steel stocks in China
have already exceeded 10m tonnes.
Chinese billet prices 'far below' production costs
Depressed by sluggish downstream demand, Chinese billet prices dropped further in March. Tangshan prices for 150x150mm Q235 billets have dropped to RMB 2,850-2,880/tonne ($417-421/t), on a cash payment basis and with VAT. As Steel Business Briefing has reported, prices recorded on 26 February were still around RMB 3,000/t.
"Though prices have already fallen far below our production costs, they don't show any signs of recovery; we have no idea where the bottom lies," the mill official adds. Hebelieves mills will have to cut production again if prices continue to slip
India import scrap price cut from Europe
The import price of Indian scrap is expected to be down by US$10~15/ton due to low demand. It is believed that the import price should be reduced to US$250~255/ton, said European traders. In fact, the real demand for scrap is only about 1000~2000 tons recently in Pakistan, Bangladesh, Vietnam and Malaysia.
Turkish steel mills to start purchase
Most of Turkish steel mills have started to purchase Russian and Ukrainian low-price square billet in order to replenish their stock. The market price of mixed scrap (H1&H2) is about US$220~223/ton CFR in Turkey. On the other hand, the market price of hi-quality scraps such as A3 scrap, P&S scrap is around US$225/ton CFR.Moreover, A3 scrap is CFR Turkey $220/ton and for H1 & H2 (90:10) mixed fragment scarp is CFR Turkey $233.5/ton. However, American and Russian scrap offers are not competitive enough for the time being. Russian square billet price consecutively slides which recent offer is FOB $320/ton. Such cheap price really attracts Turkish electric furnace mills.
Chinese steelmakers want iron ore price to decline
Cia. Vale do Rio Doce, BHP Billiton Ltd. and Rio Tinto Group have been requested to cut their iron ore prices by 40 percent to 50 percent this year by Chinese steelmakers. Most China’s steelmakers are waiting for the negotiation results and then decide how to do the next.
Thursday, March 5, 2009
Daily Steel News - 5 Mar 09
Taiwan’s rebar prices reach bottom
Taiwan’s rebar prices seem to reach the bottom level, as the current rebar price is being quoted at NT$13,500/ton, while the domestic billet price has settled at NT$12,000/ton. Some buyers even try to negotiate the price at NT$15,000/ton for rebar, but that is not acceptable for the mills. It is said that the rebar price is being settled at NT$11,800/ton, which is the bottom price for mills.
Ukraine's billet prices to keep falling
Ukrainian square billet has slid by US$50/ton to US$310~320/ton FOB however, the buyer from Turkey reportedly has placed order with 10,000 tons of square billet at US$310~315/ton FOB from Ukraine.In Asia market, the price of intermediate square billet releases from Russia and Ukraine hit CFR US$355-360/ton.
Russian scrap production to decline
Mr. Viktor Makushin, president of MAIR Group, the biggest scrap company in Russia, said that the domestic scrap market was in heavy stagnation as sluggish steel demand can’t support the scrap market.The current scrap price was being prevailing at US$150~180/ton, while it was US$300~400/ton in last year.
Indonesia to impose new rule on steel imports
Indonesian to limit importing 202 series of steels in order to protect domestic steels makers and it will be effective from April 1. All imported 202 grade steels must gain import approval certificate and submit all documents to the government. The regulation applies to protect all 202 listed domestically produced steel products including HRC. This new policy would be applied on the steels imported from those countries, which have signed trade agreements such as China, Japan, Australia, India and Russia.
Wednesday, March 4, 2009
Daily Steel News - 4 Mar 09
Turkey's section steel prices fall
Turkey's section steel prices continued to drop to US$480-490/ton from last week's US$490-510/ton.
Chinese wire rod prices head downwards, bottom may be near
Some traders, however, think prices have reached the bottom. In Beijing, prices of 6.5mm drawing quality wire rod have dropped to RMB 3,340-3,360/tonne ($489-492/t), down by more than RMB 100/t since only 2 March. Shanghai traders are offering RMB3,280-3,300/t, down by about RMB 50/t compared with 2 March.
Export prices offered by a Chinese mill is $520/t fob for wire rod destined mainly for the Japanese market. It is also believed that China has even lower offers at about $500/t fob, which are still high compared with offers from overseas of about $460/t cfr south-east Asia.
Russia offer lower billet prices
It is reported that Russia is offering US$360/ton c&f for 5SP billet to the Philippines.
U.S. billet prices continue to fall
The US billet market remains very weak, with just a few isolated deals concluded.Current billet price reached US$441~468/ton , down by US$28/ton compared with last month.As for global market, because of steel products' weak demand in the EU and CIS, billet's prices fell by about US$80/ ton. CIS billet price currently is being prevailing at US$320~330/ton while Turkey's billet price is US$360~370/ton.
Turkish buyers return to scrap market
There are signs showing that Turkish buyers have returned the scrap market. The Turkish mills recently bought 3 ships’ scrap from Europe, at US$220-235/ton on CFR basis. US also offers US$250~260/ton for HMS scrap (NO1&NO2). It’s forecasted that the price will slide by US$30/ton.
In East Asian market, China has stopped importing scrap and most Korean mills also delay the purchase plan.
Turkey's section steel prices continued to drop to US$480-490/ton from last week's US$490-510/ton.
Chinese wire rod prices head downwards, bottom may be near
Some traders, however, think prices have reached the bottom. In Beijing, prices of 6.5mm drawing quality wire rod have dropped to RMB 3,340-3,360/tonne ($489-492/t), down by more than RMB 100/t since only 2 March. Shanghai traders are offering RMB3,280-3,300/t, down by about RMB 50/t compared with 2 March.
Export prices offered by a Chinese mill is $520/t fob for wire rod destined mainly for the Japanese market. It is also believed that China has even lower offers at about $500/t fob, which are still high compared with offers from overseas of about $460/t cfr south-east Asia.
Russia offer lower billet prices
It is reported that Russia is offering US$360/ton c&f for 5SP billet to the Philippines.
U.S. billet prices continue to fall
The US billet market remains very weak, with just a few isolated deals concluded.Current billet price reached US$441~468/ton , down by US$28/ton compared with last month.As for global market, because of steel products' weak demand in the EU and CIS, billet's prices fell by about US$80/ ton. CIS billet price currently is being prevailing at US$320~330/ton while Turkey's billet price is US$360~370/ton.
Turkish buyers return to scrap market
There are signs showing that Turkish buyers have returned the scrap market. The Turkish mills recently bought 3 ships’ scrap from Europe, at US$220-235/ton on CFR basis. US also offers US$250~260/ton for HMS scrap (NO1&NO2). It’s forecasted that the price will slide by US$30/ton.
In East Asian market, China has stopped importing scrap and most Korean mills also delay the purchase plan.
Tuesday, March 3, 2009
Daily Steel News - 3 Mar 09
Analyst: 2009 to be 'worst year since the Great Depression'
The US steel sector and the domestic economy likely won't see any significant signs of recovery from the current downturn until the latter half of 2010, according to an industry expert with IHS Global Insight Inc. Speaking yesterday during Steel Business Briefing's Steel Markets North America 2009 conference in Chicago, John Anton, manager of IHS Global's Steel Service division, said the near term outlook is gloomy at best. "2009 will be the worst year since the Great Depression. 2010 will be the second-worst year since the Great Depression," Anton said. "The recession is global, therefore, you can't import (and) you can't export since no one wants your stuff." Anton said the US nonresidential construction sector, a key segment for the steel industry, is unlikely to reach peak levels until 2014, and the housing sector likely won't recover for another three to four years. However, he said US companies can take heart that the recent stimulus package passed by congress will act as a catalyst for driving the economy out of its slump - but not right away. "The US passed the second best (stimulus plan), but it could have been better," Anton said. He pointed to China's recovery plan as the best, since it seeks not only to stimulate demand for products like steel, but to stimulate consumer demand as well. Anton said China will be the first to emerge from the current global recession, likely followed by India, the US and then Europe.
Demand for steel in Gulf to drop by 35% this year
It is reported by Arabian Business that Gulf’s steel construction industry is facing slump and the demand of steel could drop by as much as 35 percent, from 14 million tons in 2008 to 9 million tons this year because of the economic slowdown, estimated by the Dubai Multi Commodities Centre.Construction in parts of Gulf region has slowed with projects delayed or even cancelled. According to a report by the research company Proleads, about US$582 billion worth of projects in UAE are on hold currently. But there are some parts of this region like Abu Dhabi are seeing growth of construction industry.
Scrap prices continue downtrend in East Asia
Scrap import offer prices are generally prevailing at $260-270/t cfr east Asia for bulk shipments of 80:20 HMS ½ and at $240-250/t cfr for containerised cargoes of 80:20, importing sources in the region tell Steel Business Briefing.
An offer of bulk mixed cargo divided equally between 80:20 HMS 1/2 and shredded is reported at $278/t cfr Southeast Asia. In Taiwan there is very little interest to book imported scrap because domestic scrap prices have fallen ($14/t last week) to the equivalent of $210/tonne, whereas several containerised 80:20 offers are prevailing as low as $230-240/t cfr. "The price idea of Taiwanese buyers for imported scrap would be $200/t cfr at the most," a Taipei-based trader says. A Chinese importer says that offers of dry bulk 80:20 are prevailing at $260/t cfr. While there has not been much import buying from China recently, there was a booking of a prompt shipment of some 30,000 tonnes of Japanese H2 scrap at $230/t cfr China.
E. Asian longs import markets brace for further price falls
Traders in east Asia are concerned that sliding prices for billet and rebar could be part of a second wave of price falls . a repeat of what took place when billet reached lows of $300-320/tonne cfr in early November last year and rebar was just under $400/t cfr. Strong buying, particularly of imported billet from China, took place ahead of announced government stimulus packages.
Imported rebar offer prices are prevailing at $430-440/t cfr Singapore for Taiwanese material and $450/t cfr for Korean material, down from offers of $470/t cfr a week ago. Turkish origin rebar was last transacted at $450/t cfr Singapore. Similarly, offers of Taiwanese billet were prevailing at around $380/t cfr last week. Ukrainian-origin billet was recently booked at $375/t cfr Vietnam.
Spot iron ore price falls amid order cancellation rumours
The price of 63% Fe grade Indian iron ore fell to $72-74/dmt by the end of the week commencing 23 February, down from around $80.5/dmt the week before. In the second week of February, the price was sitting at a post-October high of $84.5/dmt before market confidence started to disappear. As Steel Business Briefing has reported, deliveries to China have returned to peak levels with some 31m t of iron ore due to arrive before 10 March. One major iron ore trader has chosen to defer up to 20 shipments of ore from India to China because of the falling spot price and current oversupply situation, "Shipments on the water are not being paid, or are being turned away, "We expect prices to decrease further," he tells SBB.
Iron ore reference prices drop again, says The Steel Index
The reference price for 62% Fe content iron ore fines dropped by $1.60/dry metric tonne to $72.70/dry metric tonne cfr Tianjin port, China.
The reference price for 58% Fe content iron ore fines also fell to $62.70/dry metric tonne same basis. However, prices for this grade are still $2.70/dry metric tonne higher than four weeks ago.
Monday, March 2, 2009
Daily Steel News - 2 Mar 09
Turkey cuts rebar export prices
In order to consume the surplus output which will be finished in March and struggle for more orders, Turkish exported price of rebar was quoted at US$420~440/ton FOB, down by US$40 from the previous US$450~460/ton.Due to the slack demand from the construction industry, Turkish rebar market is suffering a recession.Currently, only a few orders are booked from Egypt, Saudi Arabia, Iran, Lebanon, Iraq and Romania. Some Turkish rebar maker said that now Turkish mills are in hot water because of the declining price and the threat of deficit.
Turkey offers lower rebar prices to Singapore
Global rebar market situation is getting worse now.Turkey has been giving more prices cut on rebar to Asia market to solve their oversupply problem, especially for Singapore which is one of the important rebar markets. Turkey currently only offers C&F US$450/ton to Singapore. It’s said that the cheaper purchasing price of scarp causes Turkish very competitive offer.
Japanese H2 scrap average prices down
During the fourth week of February, Japanese HMS2 scrap average price has dropped by ￥111/ton to ￥18,955/ton in the Kanto region, middle part, and Kansai region.Among them, H2 scrap price was remained at ￥20,917/ton in the Kanto region; H2 scrap price at ￥17,380/ton in the middle part; ￥18,567/ton in the Kansai region, down by ￥333/ton compared to last week.
In order to consume the surplus output which will be finished in March and struggle for more orders, Turkish exported price of rebar was quoted at US$420~440/ton FOB, down by US$40 from the previous US$450~460/ton.Due to the slack demand from the construction industry, Turkish rebar market is suffering a recession.Currently, only a few orders are booked from Egypt, Saudi Arabia, Iran, Lebanon, Iraq and Romania. Some Turkish rebar maker said that now Turkish mills are in hot water because of the declining price and the threat of deficit.
Turkey offers lower rebar prices to Singapore
Global rebar market situation is getting worse now.Turkey has been giving more prices cut on rebar to Asia market to solve their oversupply problem, especially for Singapore which is one of the important rebar markets. Turkey currently only offers C&F US$450/ton to Singapore. It’s said that the cheaper purchasing price of scarp causes Turkish very competitive offer.
Japanese H2 scrap average prices down
During the fourth week of February, Japanese HMS2 scrap average price has dropped by ￥111/ton to ￥18,955/ton in the Kanto region, middle part, and Kansai region.Among them, H2 scrap price was remained at ￥20,917/ton in the Kanto region; H2 scrap price at ￥17,380/ton in the middle part; ￥18,567/ton in the Kansai region, down by ￥333/ton compared to last week.
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