Tata Steel service centre in UK

Tata Steel opens UK's largest plate service centre

TATA Steel has today opened the UK’s largest profiling centre for steel plate in the West Midlands, increasing its plate processing capacity in the region by up to 50 per cent.

The new Profiling Centre, at Steelpark in Wednesfield, transforms steel plate into a multitude of shaped and machined components, from high-volume production runs for off-road vehicle wheels and booms for earth-moving equipment, to large one-off components for construction projects and specialist engineering applications.

The £3.1 million facility provides a step change in Tata Steel’s capability to supply plate that has been cut and finished to exact size, shape and quality specifications. Steelpark’s profiling capacity will be increased to 47,000 tonnes per annum.

Paul Steele, Managing Director at Tata Steel Distribution UK and Ireland, said: “This investment is one of a series of developments that is strengthening Steelpark’s position as one of the key foundations for UK manufacturing. We are transforming the UK’s largest steel service centre into an operation that is entirely focused on meeting customer requirements and supporting their success.”

The development amalgamates Tata Steel’s plate cutting and machining capability into a single facility able to offer a comprehensive suite of tailored processing services to meet customers’ specific requirements.

The investment will shorten order and delivery times, enabling Tata Steel to offer a range of benefits to customers in the lifting & excavating and construction sectors, including greater consistency of quality and a single point of contact for the purchasing process.

(www.steelguru.com)

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Spot iron ore prices

Spot iron ore holds near 5 month low

Reuters reported that spot iron ore prices stayed near their weakest level in more than five months, reflecting slow demand from top importer China where steel mills are in no rush to snap up cargoes amid a soft market.

Chinese iron ore futures bounced back slightly after plumbing a fresh contract low and Shanghai steel edged up but not far above a record trough reached last week.

According to data compiled by Steel Index, ore with 62% iron content for immediate delivery to China .IO62-CNI=SI was little changed at USD 130.90 a tonne on Monday versus Friday's USD 130.70, its weakest level since August 5.

High stockpiles of iron ore at Chinese ports after recent brisk shipments show there is limited appetite for the raw material among mills. Inventories of imported iron ore at major Chinese ports stood at 91.4 million tonnes last week, up more than 2 million tonnes from the previous week, based on data from industry consultancy Mysteel.

Chinese mills have in past years restocked heavily on iron ore ahead of the week long Lunar New Year break, sending spot prices to near USD 160 in January last year ahead of the holiday that fell in February. But traders say the appetite is more limited this year ahead of the holiday that begins on January 31st 2014.

An iron ore trader in Shanghai said that there is still some restocking going on, but people are buying in small volumes of 5,000 tonnes to 10,000 tonnes. Persistently high borrowing costs, lower winter construction demand, nervousness over property market changes and the upcoming Chinese holidays are reducing demand for steel and iron ore in China, the world's biggest consumer of the commodities.

China's interbank rates have eased from recent highs although banks remain uneasy with the approaching Lunar New Year holiday which puts massive pressure on cash supply.

The most-traded rebar contract for May delivery on the Shanghai Futures Exchange was up 0.5% at CNY 3,487 per tonne by midday. It touched a record low of CNY 3,441 on Friday amid weak demand for the construction steel product.

(www.steelguru.com)

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World's largest steel trader

Lenders extend Stemcor debt standstill to end-Feb

Reuters reported that Lenders to Stemcor, formerly the world's largest steel trader, have extended its debt standstill agreement to the end of February, allowing it more time to restructure a USD 1.25 billion debt.

The private British firm, controlled by members of the Oppenheimer family which includes opposition Labour Party lawmaker Mr Margaret Hodge is under pressure to sell its iron ore assets in India in order to repay its debt.

The assets, which include an iron ore mine and processing facilities in Odisha, have been valued by an industry source at USD 700 to 750 million, though that number is subject to change if the state beefs up its mining laws.

Output from Odisha the largest iron ore-producing state could be affected after a government-appointed panel, the Shah Commission, submitted a report highlighting illegalities in mining.

India's iron ore exports are down by about 85% or 100 million tonne over the past 2 years as the government imposed export bans in Karnataka and Goa in an attempt to clamp down on illegal mining.

India's second largest lender by assets has lent Stemcor INR 5.87 billion, with Stemcor's Indian assets as a collateral and is worried that a sale could jeopardise a payback.

Like many steel companies, Stemcor was hit hard by the global financial crisis. The company failed to refinance an $850 million syndicated loan that was due to mature last May, and has since concluded four standstills. Under a standstill, lenders agree not to ask for repayment and work with the company to restructure the debt. Lenders to Stemcor include ABN AMRO Bank, HSBC, ING, Natixis and Societe Generale.

(www.steelguru.com)

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US challenges China

US challenges China non compliance in WTO CRGO steel dispute

Mr Michael Froman US Trade Representative announced that the United States is requesting that China enter into consultations regarding China's claim that it has brought its duties on US exports of grain oriented flat-rolled electrical steel (GOES) into compliance with WTO rules. AK Steel Corporation, based in Ohio, and Allegheny Ludlum, based in Pennsylvania, manufacture GOES.

China's actions cut off more than USD 250 million in exports of this high tech steel product and in 2012 the United States won a dispute at the WTO that China broke WTO rules with its imposition of antidumping and countervailing duties on GOES. The United States continues to pursue this dispute to ensure that China follows through on its obligations under the ruling and does not further harm US exports and the American workers and firms that make them, by abusing trade remedies. This is the first time the United States has initiated a proceeding in the WTO to challenge a claim by China that it has complied in a WTO dispute.

Ambassador Froman said that "Supporting American jobs is our number one job. And to ensure that Americans see the full benefit of the rules and market access we have negotiated in our international trade agreements, the President put enforcement of America's rights in the global trading system on a par with opening markets for US Exports. The WTO found that China's duties are inconsistent with WTO rules. We were right, and China was wrong. Unfortunately, it appears that China has not corrected those inconsistencies. Today's action shows that when the United States steps up to the plate on trade enforcement, we will follow through."

(www.steelguru.com)

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Valuation of Indian iron ore

Valuation of Indian iron ore assets of Stemcor falls - Report

Financial Express reported that Stemcor India, which had put up its assets in India for sale since September, has seen its valuations tumble to almost 50% of what was earlier quoted when the asset was first put on the block.

According to sources in companies currently looking at buying the assets, their current value is being pegged at not more than INR 3,500 to 4,000 crore or roughly in the range of USD 600 million, against an earlier estimated figure of USD 1 to 1.2 billion.

This is a downward revision since September 2013 and ushers in better negotiation power for companies like JSW Steel, Jindal Steel and Power, Essel Mining of the Aditya Birla Group, Essar Steel and Visa Steel.

In fact, with the interested bidders now progressing with their due diligence of the 2 main assets of Stemcor India and their accounts, startling revelations have come out forcing the interested companies to look at Stemcor India as not an out an out attractive buyout.

This has been accentuated with the Justice MB Shah Commission’s debilitating report released on December 26th accusing most of the mining companies in Orissa of being involved in illegal mining.

The Commission report had said that all 55 mines around the Baitarni river and its tributaries should not be allowed to operate till the time their environmental approvals are revisited.

A top official in the Orissa government’s mining department, while refusing to divulge any more information said that “Almost all major companies are part of the Baitarni river iron ore belt and Aryan Mining is one of them.”

Aryan Mining, which is the shining jewel in Stemcor India’s crown, is also embroiled in litigations apart from the allegations of the Commission report. In 2012 to 13, the company had to keep its operations shut for almost 7 months as the state government had initiated investigation of various statutory compliance being carried out by the mining department.

(www.steelguru.com)

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Chinese steel rebar

Chinese steel rebar futures at SHFE clings to contract lows

Chinese steel futures drifted to near contract lows on Thursday, as poor demand in the world's top consumer weighed on prices.

The most-traded May rebar contract on the Shanghai Futures Exchange ended 0.2 percent lower at 3,456 yuan a tonne, not far from a low of 3,449 yuan hit on Wednesday, its weakest since the contract was launched in April 2009.

Slower demand and tougher environmental checks have forced steel mills in the world's biggest producer to cut output significantly, easing a supply glut. China's average daily steel output fell 2.7 percent to 1.961 million tonnes in the last 11 days of December from the preceding 10-day period, dipping below 2 million tonnes for the first time since early February 2013.

(www.steelguru.com)

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Coal Imports into India

Coal Imports into India cross 140 million tonne mark in 2013

Based on preliminary data from major ports, imports of various types of coal and coke into India during 2013 have totalled 141.509 million tonnes

While thermal coal import, estimated at 107.8 million tonnes, accounted for about 76%, coking coal import is estimated at about 30.7 million tonnes. The other products like met coke, pet coke and coke nut accounted for about 2%

Australia remained the top supplier of coking coal with about 84% share. For thermal coal Indonesia was the major supplier with about 75% share. For met coke, Chinese dominance at about 56% was somewhat diluted with supplies coming from 9 other nations.

The highest monthly imports took place in July 2013 at about 13.4 million tonnes with monthly average for 2013 at 11.79 million tonnes per month

Ports on Western Coast received about 69 million tonnes, followed by Eastern Coast at about 50 million tonnes and Southern Coast at 21 million tonnes. The highest imports occurred at Mundra 33.1 million tonnes, followed by Krishnapatnam at about 18.6 million tonnes, Ennore at 10.4 million tonnes, Paradip at 9.3 million tonnes, Haldia at 7.7 million tonnes, New Mangalore at 7.3 million tonnes, Mormugao at 7.3 million tonnes, Dahej at 6.9 million tonnes, Vizag at 6.4 million tonnes and Kandla at 5.2 million tonnes. The balance 14 ports accounted for 29.2 million tonnes

A total of about 2300 number of vessels were unloaded ie about 50 per week at various ports with an average cargo size of 60,000 tonnes per vessel

For receiving a PDF file giving a FREE overview of coal imports in India during 2013, please send a mail to reports@steelguru.com

(www.steelguru.com)

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SAIL hikes prices per tone

SAIL hikes prices by INR 700 a tonne for both longs and flat Business Line reported that Indian steel giant Steel authority of India Limited has hiked the prices of both flat and long steel products by Rs 500-700 a tonne for January sales and shipments.

Me CS Verma chairman of SAIL told ““The demand is slightly picking up. There are signs of revival in the market.”
But he cautioned that “The expected slowdown in the Government spending in the months ahead of the general elections could be a limiting factor.”
(www.steelguru.com)

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Secondary steel sector in India

Now you can reach secondary steel sector in India The Indian steel sector is besotted with thousands of small players manufacturing sponge iron, producing ingots and rolling TMT and variety of sections accounting for more than 50% of crude steel production in India But such a large number of plants are facing severe headwinds due to raw material availability at high prices, sluggish demand growth for long products amid surplus rolling capacity and quality issues because of technological disadvantages. While many have shut the shop, others are struggling to reduce input material costs and cut production cost through technology up-gradation. Many are also looking for alternate markets especially exports to ride on weak INR for better realization and volumes The current situation presents a host of opportunities to wide section of steel players starting from raw materials & consumable suppliers, technology providers, consultants and exporters etc. But due to the high degree of fragmentation (Less than 30% having presence on internet through company website), it is quite difficult to find the contact details to reach the secondary sector in India Published in October 2013, 'Directory of Secondary Steel Sector in India ' has been comprehensively researched and prepared, to bring you a fully up to date guide to Indian steel sector. Why spend hundreds of hours searching for new contacts? Invest in a copy TODAY! This report covers name of 912 sponge iron manufacturers, IF based steel makers and steel re-rollers of India. While some are engaged in one activity, many undertake all three activities Price & delivery USD 350 or INR 20000 Excel File Delivery by Email on receipt of payment How to order Send a mail to reports@steelguru.com requesting for invoice Contact details Ratan reports@steelguru.com Mobile - +91 8586095201 Phone - +91 124 4048993 (Monday to Friday - 9AM to 5PM IST)

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Indian steel consumption

Indian steel consumption growth is almost nil in last 9 months According to latest release from Indian steel ministry’s Joint Plant Committee, India’s total steel consumption grew by just 0.5% YoY to 53.789 million tonnes during April-December 2013 as against 53.52 million tonnes in the first nine months of 2012-13.

Consumption of carbon steel during the current year amounted to 51.22 million tonnes up by 2.2%YoY while alloy steel consumption dipped by massive 25% YoY to 2.547 million tonnes

As per JPC data, production for sale of the total finished steel at 60.446 million tonnes registered a growth of 5.2% during the April-December

Import showed a southward trend at 4.099 million tonne during the period down by 29.2% YoY as against 5.790 million tonnes in april-December2012. However exports were up by 9.5 per cent to 4.136 million tonnes as against 3.778 million tonnes in April-December 2012

The production of pig iron during April-December2013 slid by 3.3% YoY to 4.451 million tonnes while the consumption reduced by 10.3% YoY to 3.931 million tonnes

(www.steelguru.com)

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Steel reinforcement-bar futures fell in Shanghai

Rebar declines in Shanghai after biggest producers lower prices Bloomberg reported that steel reinforcement-bar futures fell in Shanghai, set for a fourth weekly loss, after the biggest steel producers across China cut prices amid slowing demand.

Rebar for May delivery on the Shanghai Futures Exchange dropped as much as 1.2% to CNY 3,546 (USD 586) a metric tonne, and was at CNY 3,550 at 10:38 AM local time. Futures are down 1.8% this week.

Jiangsu Shagang Co the biggest maker of rebar, lowered prices by CNY 130 a tonne starting January 1, while Hebei Iron & Steel Co China’s largest steelmaker by output, cut rebar by CNY 70 and lowered prices of wire by CNY 40.

Mr Lv Xiaohua an analyst at Everbright Futures Co in Shanghai said that “Producers have been forced to cut prices because of slowing demand in winter and a liquidity shortage, and that’s adding more bearishness into the market.”

(www.steelguru.com)

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Anti industry group

Anti industry group to continue struggle in Kalinga Nagar

New Indian Express reported that people of Kalinga Nagar observed Saheed Divas marking the 8th anniversary of the Kalinga Nagar firing incident which claimed lives of 14 tribals including three women.

While the anti industry groups assembled at Ambagadia, where the tribals killed in the police firing were mass cremated, pro industrialisation group, led by those who have been rehabilitated by TATA Steel, held a parallel meeting at Gobarghati colony.

Around 2000 members of Visthapan Virodhi Jan Manch, which has been spreading the anti displacement movement since Kalinga Nagar incident, paid tributes to those who were killed in the police firing on this day in 2006.

Earlier, a rally of the VVJM was taken out from Champakoila where the firing took place and reached Ambagadia via Duburi Chhak. Later, the VVJM organised a public meeting where it reaffirmed its pledge to continue the fight against forcible displacement.

Mr Rabindra Jarika secretary of VVJM said that “We would continue to fight against forcible displacement for which they laid down their lives.”

However, around 3000 people under the banner of Visthapita Parivar Unnayana Parishad participated in a pro-industry rally and held a meeting at Gobarghati colony. 4 platoons of police along with two magistrates were deployed to prevent any untoward incident.

(www.steelguru.com)

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China Steel Corp one of Taiwan's leading steel makers

CSC February capacity fully booked China Steel Corp one of Taiwan's leading steel makers, said Saturday that its production capacity for February is fully booked due to solid demand from its clients in the downstream steel industry.

Judging from the backlog of orders, China Steel said its shipments for February are expected to remain steady compared with a shipment of approximately 1.02 million metric tonnes for January.

However, due to the fewer number of working days in January as a result of the upcoming Lunar New Year holiday, shipments for the month will fall slightly from the 1.04 million metric tons recorded in December.

The December shipments were calculated based on a combination of China Steel's 750,000 metric tonnes and its unit Dragon Steel Corp.'s 286,000 metric tonnes.

Although the Lunar New Year holiday, which falls on January 30 and will continue until February 4 this year, will cut the number of working days short in February as well, the fully booked capacity will ensure that shipments for February will offset the impact from the fewer working days and remain stable, the steel maker said.

Due to the solid orders from downstream clients, China Steel said it expects its monthly production to range between 750,000 metric tons and 790,000 metric tons, while Dragon Steel could roll out more than 200,000 metric tons of steel products in February.

(www.steelguru.com)

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Monday Market Monitor

India - WEEK 01 - Flats Flutter Longs Languish

The Indian Long Product Price Index ILPPI has gone down by 26 points last week whereas Indian Flat Products Index IFPPI has gone up by 63 points. The overall price index INDSPI declined by 29 points.

In case of long products, while the sections faced weak conditions, wire rod remained stable. However, the rebar prices improved by more than 1% the reasons for which are quite not clear. Nothing has changed on the ground and construction projects are continuing to face severe liquidity issues. Thus without fundamental support from demand side, we are likely to witness downslide in rebar

Taking the signal from the announcements by Indian steel majors, market responded in positive direction especially for HR and plates where the prices improved by almost 1% WoW. While HR price improvement is on low import viability, plate price improvement is due to curtailed domestic supply.

Current HR import offers at USD 550-560 CFR Mumbai with 7.5% import duty translate to just about INR 38000 per tonne as against new domestic levels of about INR 37000-37500 per tonne giving no import opportunities amid currency fluctuation risk.

In case of plates, the surge in domestic prices is much higher due to curtailed availability

Class	27-Dec	03-Jan	Change	%
ILPPI	8781	8755	-26	-0.30%
IFPPI	8731	8794	63	0.70%
INDSPI	8804	8775	-29	-0.30%

ILPPI - Indian Long Product Price Index
IFPPI - Indian Flat Product Price Index
INDSPI - Indian Steel Price Index

Long Products

Category	27-Dec	03-Jan	Change	%
PI - TMT	8671	8771	100	1.20%
PI - WRC	8937	8947	10	0.10%
PI - Angle	8444	8497	53	0.60%
PI - Channel	8506	8433	-73	-0.90%
PI - Joist	7746	7686	-60	-0.80%

PI - Product Index

Flat products

Category	27-Dec	03-Jan	Change	%
PI - Narrow Plates	8196	8261	65	0.80%
PI - Wide Plates	8482	8542	60	0.70%
PI - Hot Rolled	8397	8482	85	1.00%
PI - Cold Rolled	9326	9372	46	0.50%
PI - Galvanized	9185	9205	20	0.20%

PI - Product Index

These indices have base of 10,000 as on July 1st 2008
To know more about these indices please visit
http://steelprices-india.com/spi_services/spi.html

To download a presentation please paste this link in your browser
http://www.steelprices-india.com/uploads/Steel_Price_Index_Presentation.ppt

You can now get ILPPI, IFPPI and INDSPI as SMS alert on mobile by submitting your details at
http://steelprices-india.com/smsalert

1. Input material

Melting scrap
80:20
HMS

Location	Change
Bangalore	0.00%
Chennai	0.00%
Hyderabad	0.00%
Kandla	-2.00%
Kanpur	1.00%
Kolkata	0.00%
Ludhiana	1.00%
Mandi	2.00%
Mumbai	0.00%
Rudrapur	-1.00%

Change is on 3rd January 14 as compared to 27th December 13
Change is per tonne

Alang

Product	Size	Change
Plate cuttings	1"	4.30%
Ships	Mixed	-0.80%

Change is on 3rd January 14 as compared to 27th December 13

Pencil ingot

Location	Change
Ahmedabad	3.00%
Alang	0.00%
Bhiwari	1.00%
Chennai	0.00%
Durgapur	0.00%
Ghaziabad	1.00%
Hyderabad	2.00%
Jaipur	1.00%
Jamshedpur	1.00%
Kanpur	0.00%
Kolkata	2.00%
Ludhiana	1.00%
Mandi	0.00%
Mumbai	0.00%
Muzaffarnagar	1.00%
Nagpur	0.00%
Raigarh	0.00%
Raipur	-1.00%
Rourkela	1.00%
Rudrapur	-1.00%

Change is on 3rd January 14 as compared to 27th December 13
Change is per tonne

More Info: Monday Market Monitor

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Hyundai Steel invest KRW 844.2 billion towards construction of a new plant

Hyundai Steel plans KRW 844.2 billion investment in new plant

South Korea's Hyundai Steel Co announced its plans to invest KRW 844.2 billion towards construction of a new plant in the western coastal area of the country. The plant will deal in production of next-generation special steel. Completion of the facility is expected by October 2015.

A division of Hyundai Motor Group, Hyundai Steel, will be responsible for the construction of the new plant in Dangjin, nearly 123 kilometers southwest of Seoul.

(www.steelguru.com)

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Crude steel production at 1.16 MT in Dec.’13

SAIL posts 14% rise in sales in December

SAIL registered a growth of 14% in sales of saleable steel at 1.13 million tonnes in the month of December’2013, as against the same month last year. Crude steel production at 1.16 MT in Dec.’13 was up by 7% over SMLY. On techno-economic front, Coke rate and energy consumption improved by 1% each in the month of December’2013 over SMLY.

The upward trend in performance in the last couple of months is an outcome of concerted efforts directed at sales improvement in both domestic and international market. Strategic focus on enhanced production especially of value-added products has resulted in sustained growth on production and sales front. In Oct-Dec’2013 period, total sales of steel by SAIL at 2.98 MT were up 6% on Y-O-Y basis. This included exports of 1.77 lakh, which recorded a growth of 122% over the same period last year. Production of crude steel in Q3FY14 also went up by 4%, as compared to CPLY.

Chairman, SAIL Mr CS Verma in his New Year address to employees exhorted the employees to work and conduct themselves in a way that SAIL becomes synonymous with business excellence. He highlighted the imperative need for excellence in areas like improving the quality of inputs, enlarging share of value added products and intensive customer engagement with thrust on higher net sales realisations. He urged the employees to have ownership of SAIL, passion for SAIL and pride in SAIL, which together are the driving force that will lead our company to greater heights. Let “my SAIL, my Pride” be the mantra for 2014.

(www.steelguru.com)

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Indian steel mills

Indian steel mills compulsion unlikely to be understood by market

Expected price hike by INR 1000-1500 per tonne by Indian mills if not surprising but is likely to go unnoticed by market which is teetering in the peak of season. Badly emaciated by credit starvation despite all the hullaballoo has never really shown any semblance of revival.

In solo performance by the Indian mills being patted by its own band of marketers the truth has looked starker with repeated failure in demand and production. Meager 0.4 % growth in steel consumption over the past 7 months (April- Nov) and growth in steel production by 1.9% y-o-y lagging way behind the global tally of 3.2% putting the final nail in the coffin even before the year draws to close.

Indian economy has slumped incomprehensibly to only 4.8% growth in November. Even though there has been a faint uptick in IIP index by 2.7% in November it has not translated into consumption in real terms as consumer durables, auto and construction are derived demand from the movement in infrastructure fundamentals.

Steel mills apart from breast beating about hiked cost have tried to sell the theory of enhanced demand in the last quarter of FY 13-14 with most of the projects inching towards completion before 31st March. However if the core demand and projects under process being pale shadow of the glorious past it is unlikely to tweak demand.

(www.steelguru.com)

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US steel imports

US steel imports decrease in November -AISI

Based on preliminary Census Bureau data, the American Iron and Steel Institute reported that the US imported a total of 2,584,000 net tons of steel in November, including 1,906,000 net tons of finished steel (down 16.7% and 16.2%, respectively, vs. October final data).

Year to date total and finished steel imports are 29,636,000 and 22,933,000 net tons respectively, down 4% and 5% respectively, vs. 2012. Annualized total and finished steel imports in 2013 would be 32.3 and 25.0 million NT, down 3% each, respectively vs. 2012. Finished steel import market share was an estimated 22% in November and is estimated at 23% YTD.

A key finished steel product with a significant import increase in November 2013 compared to October is reinforcing bars (up 26%). Major products with significant YTD import increases vs. the same period last year include Reinforcing

bars (up 23%)
Hot rolled bars (up 14%)
Sheets and strip all other metallic coatings (up 12%)

In November, the largest volumes of finished steel imports from offshore were all from Asia and Europe. They were from South Korea (244,000 NT, down 38% vs. October final)

China (163,000 NT, down 24%)
Japan (139,000 NT, up 11%)
Germany (103,000 NT, down 5%)
Turkey (75,000 NT, up 3%).

For eleven months of 2013, the largest offshore suppliers were
South Korea (3,413,000 NT, down 2%)
China (1,755,000 NT, up 18%)
Japan (1,746,000 NT, down 5%)
Turkey (1,159,000 NT, down 11%)
Germany (1,017,000 NT, down 12%)

(www.steelguru.com)

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Chinese flats suppliers

Chinese flats suppliers eying for recovery before the Spring Festival

Despite gloom writ large in Chinese steel market despair is the last word in the global depository of steel. Churning out volumes in the worst of times is miracle witnessed only in China and the hope for revival never dies.

Chinese economy despite slothfulness has clocked nearly 7.6% GDP in 2013 way ahead of global lagers who have not been able reach half of it. Approaching Spring Festival in early February has traditionally been phase of heightened demand and activity before the holidays and in anticipation of pick up in construction and industrial activity during spring and summer season.

Most of steel makers have pegged their hopes on revival despite slow demand. However situation has barely changed for the moment with the most active rebar futures for May contract on the Shanghai Futures Exchange lost 1 percent to CNY 3573 per tonne by close, as demand outlook remained shaky despite firm raw material prices.

Some recent weather happenings have disrupted supply from the two main exporting countries of Australia and Brazil. It has led to spike in Iron ore price levels.

Chinese iron ore futures extended gains to hit a two-week high on Monday amid supply concerns. The most-traded iron ore futures May contract on the Dalian Commodity Exchange rose to a session high of CNY 920 ($150), a level last seen on Dec. 17.

Obvious fall out will be squeezing of the margins of steel makers unless demand picks up before Spring festival.

(www.steelguru.com)

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Rashtriya Ispat Nigam Limited

Mr P Madhusudan takes over as RINL CMD

Mr P Madhusudan, Director (Finance) assumed charge as The 9th Chairman cum Managing Director of Rashtriya Ispat Nigam Limited on January 1st 2014

Mr Madhusudan joined RINL as Director (Finance) in 2009 and played a significant role in financial performance of the Company and pioneered in introducing of e - payments to the customers/suppliers which was widely acknowledged in the entire Indian Steel Industry.

Mr Madhusudan will be at the helm of affairs at RINL for the next five years

(www.steelguru.com)

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Indian steel mills hike prices

Indian steel mills hike prices for January shipments

It is reported that some of the Indian steel mills, on the anticipated lines, have increased prices of various steel products by up to INR 1,000 a tonne to INR 2000 per tonne for different products.

While they have cited higher costs of iron ore and increased railway freight charges (About INR 700 per tonne) as the driver for this decision, several other factors seem to have given them the courage to go for hike despite dismal demand conditions.

In case of HR, the subdued imports due to unviable import parity gave them scope for this rise. However, as the demand remains sluggish, the coming days will decide the extant of actual hike absorbed by the market.

In case of plates, the domestic availability was curtailed in December as one of the mills undertook capital maintenance while another was reported to be facing production issues. As a result, the plate market prices has already surged in later part of December 2013

It is also heard that some of the steel producers have hiked prices of rebar and wire rod by INR 1000 per tonne

The exact details of price hikes are awaited from various steel makers

Indian steel makers had previously hiked the prices in September by up to INR 2,500 per tonne. Steel makers have been rolling over prices since October

(www.steelguru.com)

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