Coal imports likely to shoot up by 19 pc
Coal imports are likely to increase sharply by 19 per cent to 200 million tonnes (mt) during 2014-15 as power companies have added capacities in order to meet the rising demand, the Coal Secretary, Mr Anil Swarup, said.
However, imports could decline to 160 mt next year as Coal India Ltd (CIL) is expected to boost output by 50 mt in 2015-16 to 550 mt. Private companies are also increasing their production, he added.
BaoSteel warns of tougher 2015 amid oversupply and New Norms
Highlighting the realities of downturn in Chinese steel sector, BaoSteel has warned that oversupply situation in China is there to stay keeping domestic steel prices low in 2015, which also means that Chinese steel mills will continue to make export offers at current levels or even lower wiping out any hopes of recovery in global steel prices in coming times
Chinese steel giant Baoshan Iron & Steel Co Ltd recently warned that “The steel sector remains extremely competitive in 2015 and so, demand and supply will slow in tandem. The steel sector will still suffer from oversupply and it will be a new normal for companies’ operations to just make small profits.”
BaoSteel has set its business target in 2015 with the gross revenue not less than CNY 190 billion
BaoSteel had posted a 0.68% fall in its 2014 net profit, logging a second straight year of decline, as net profit of BaoSteel reached CNY 7.631 billion on total revenue of CNY 188.427 billion also down by 0.84% YoY
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Shanghai rebar falls by 1pct on demand doubts
Reuters reported that Chinese steel futures fell more than 1% pulling further away from a three week top, on worries a slowing economy would further curb demand in the world’s top consumer.
The most active October rebar contract on the Shanghai Futures Exchange was down 1.1% at CNY 2,498 per tonne at 0239 GMT. It touched a session low of CNY 2,488, down more than 3% from a three-week peak on Tuesday.
Mr Wang Liqun, vice chairman of the China Iron and Steel Association said that China’s apparent crude steel consumption dropped 7.5% in the first two months of the year to 113 million tonnes.
Ms Helen Lau, analyst at Argonaut Securities (Asia) Ltd in Hong Kong said that “There should be some support to the market because the supply side is under control. But it seems that overall underlying demand is not very strong.”
Steel prices rose earlier in the week on expectations that mill shutdowns arising from China’s tighter environmental standards would crimp supply in a glut hit market.
MMK becomes a steel supplier for Ford in Russia
OJSC Magnitogorsk Iron and Steel Works announced that it has been named as a steel supplier for Ford cars produced in Russia. MMK is successfully completing the acceptance process for its steel plate with Ford Sollers Holding, Ford carmaker in Russia, and is increasing supplies of automotive sheet to the corporation.
Currently, two items of ultralow carbon steel in various drawing categories used in the production of car body parts (including the front) for Ford Focus, have been fully accepted. High duty ultralow carbon steel for Ford Focus hoods is at the pilot batch approval stage. MMK also expects several items of ultralow carbon steel for the production of Ford Kuga and Ford Explorer parts to be accepted. Furthermore, the Company aims to produce and supply the car manufacturer with high density microalloyed and dual phase steel both with galvanised coating and as a cold-rolled uncoated product.
MMK and Ford Sollers Holding have been cooperating on automotive sheet production localisation since 2010. This process involves phase-by-phase metal acceptance. During the first phase, the car maker receives special qualification sheets for the metal products it plans to purchase from MMK. These include a full overview of current production of each relevant steel grade including its key specifications and operational statistics.
Following approval, Ford then places an order for a small pilot batch, usually of less than five tonnes. Provided the pilot batch receives positive reviews, Ford then places an order for a bigger pilot batch. If this pilot batch is approved, the parties then agree on commercial supplies of accepted metal.
Tata Power to acquire 50% stake in ITPC
Tata Power Co. Ltd on Wednesday said it will buy out the 50% stake held by Tata Africa Holdings (SA) (Pty) Ltd in its Zambian joint venture.
The company said it has entered into a share and purchase agreement with Tata Africa for the stake in Zambia’s Itezhi Tezhi Power Corp. Ltd (ITPC) for an undisclosed amount.
ITPC, a 50-50 joint venture between Tata Africa Holdings (SA) (Pty) Ltd and the Zambian parastatal utility ZESCO Ltd, was set up to build and operate a 120 MW hydro power plant in Zambia.
Tata Power Co. Ltd lost 1.59% to close at Rs77.20 per share on Wednesday on the BSE, while the benchmark Sensex lost 0.18% to close at 28111.83 points.
This post was written by Atlantic Admin