Steel Guru

Sunday, July 26, 2009

Indian Steel Projects - Following the Global Meltdown

10:41 PM Unknown No comments

India with huge resources of iron ore, cheap labour and managerial skill has created strong and enviable competitive conditions for steel making in the country. It is also a place where steel demand growth potential is enormous judged by any criteria. Therefore, naturally, the country received enthusiastic response from the investors worldwide to set up steel capacity once the industry was deregulated in the early nineties. While the initial response to opportunities in the nineties did not end with corresponding level of success, the reappearance of supportive conditions in the steel and raw materials market provided another chance to prospective investors. This time, they were with more concrete plans and stronger will.

While progress was held back by the global economic turmoil beginning the middle of 2008, the industry is sure has not given up. Different projects are at different stages with some completed while others struggling to take off. The drawing boards are fully occupied. The economic crisis has changed the basic economics of the projects. Changes have been incorporated everywhere. Sizes, technology, product mix and even the phasing of the projects have been changed.

Where do the viability of the major steel projects stay today in the changed conditions of the steel and raw materials market and with China continuing to raise new capacity? Will the steel industry in the developed world die to provide one more chance to the Indian steel industry? Have the changed conditions in the economy made the planned product mix of the steel makers unsuitable in the emerging conditions?

The Indian steel projects have now been studied in the context of the emerging reality in the global steel. The entire study is based on information collected from neutral sources and provides an independent perspective.

“The Indian Steel Projects : Following the Global Meltdown” is the latest book by Dr. A.S.Firoz, an eminent economist and steel and natural resources expert, examines the Indian steel projects in detail . It is a lot of information, analysis and strong commentaries to support a decision maker take correct strategic view of the industry in the short and medium term.

The report is extensively chart based and the 148 pages of it contain numerous charts and tables, apart from, and most importantly rigorous analytical content with views of a globally renowned expert in the industry. It is reading must for all related to the business of the steel industry in India.

To see details of contents, please visit
http://www.steelguru.com/reports/detail/Indian_Steel_Projects%253A_Following_the_Global_Meltdown.html

Report summary: Updated July 2009 Edition
Price: INR 95000 or USD 2000
No of Pages: 138
Format: PDF file
Delivery: By E mail

An inaugural discount of 20 per cent will be provided to bookings made by the 7th of August 2009. Also, those who had bought reports of the same author earlier through stelguru.com will be entitled to a discount of 20 per cent over and above the inaugural discount.

Ordering the report is simple. Pease send a mail to reports@steelguru.com for getting an invoice

TATA Steel looking for opportunities to invest in Thailand

10:41 PM Unknown No comments

According to Mr B Muthuraman MD of TATA Steel Limited, it is seeking more investment opportunities in Thailand both in the steel and automotive sectors. It has been encouraged by the steady increase in hot rolled steel prices to USD 540 per tonne today from USD 400 in April.

Mr Muthuraman last week said that “The global steel market contracted by 22% in the H1 of 2009, after declining 1.2% in 2008, but it is expected to recover gradually in the H2 to finish the year with 15% contraction. In the Thai market, the H1 contraction was 30% with a full year projection of 17%.

Mr Muthuraman on the sidelines of the shareholders meeting of TATA Steel (Thailand) Plc in Bangkok said "But we believe that the economy and the industry will see some improvements in the third quarter onward. Thailand still has attractive business conditions and we will definitely invest more in Thailand after the economy improves."

He said “TSTH would open its THB 3.8 billion mini blast furnace, the first of its kind in Southeast Asia, on schedule next month with the capacity to produce 500,000 tonne of semi finished products such as billet and pig iron.”

The upstream steel facility will enable TSTH to trim production costs amid volatile raw material prices and be more competitive in export markets including India.

Mr Santi Charnkorawee president of TSTH said “It aimed to produce 1.1 million tonne of wire rods and rebar this year, on par with last year, about 10% of which would be exported mainly to neighboring countries. We are awaiting a license to export to southern India where supply is still short of demand."

Mr Santi said “The government's planned rail projects, for which construction is expected to start late this year, would consume about 100,000 tonne. The government's mega project scheme would actually drive domestic steel demand to rise from next year onward."

He said “Prices of steel bar peaked at THB 35,000 per tonne in June last year before falling sharply, though they have since recovered to around THB 17,000 to THB 18,000.”

(Sourced from http://www.steelguru.com/news/index/2009/07/27/MTAzOTA3/TATA_Steel_looking_for_opportunities_to_invest_in_Thailand.html)

Indian Steel Market - Emerging Reality - Following the Global Meltdown

10:40 PM Unknown No comments

The world of steel has changed significantly with the global economic meltdown. So unexpected was the downturn and so severe was the slide that the industry globally was left with one of the worst situations in the recent history. Most experts are still busy gauging the impact the global recession has left on the steel industry. The conditions the world was unprepared for have also altered the understanding on the dynamics of the steel industry worldwide among experts. Most of the projections of future growth have become redundant.

Although Indian economy and to a large extent the steel industry here, remained relatively insulated from the global turmoil, the impact could not be written off as minor. A fresh look was immediately required to examine and assess the same rationally, realistically and truthfully. It is clear, the ground reality in Indian steel has changed sharply and there is need to remain prepared for more important changes.

The economics of steel projects are different today because the market is not the same as it was a year ago. The investors are a lot more cautious now. There have been announcements one after another about possible delays in completion of their projects as also of abandonment in many cases. There will be more such cases. The question more important is to know how is the industry’s growth curve shaped now and how will that be affected by the upcoming developments in the years ahead? All that we know today is that the supply side of the market remains uncertain and requires in depth analysis.

Similarly, the industry is waiting to correctly understand which way the market is heading for each product specifically? The change in the economic dynamics globally and in India will importantly change the pattern of demand for steel products. New thoughts and clear forecasts are required.

Indian steel prospects needed a fresh evaluation in the hands of an expert. This is what Dr AS Firoz, Strategy Consultant in Steel and Natural Resources, has done in his latest reports. One of his reports entitled “Indian Steel Market : Emerging Reality : Following the Global Meltdown” covers, in the context of the issues raised above, an analysis of the conditions of the steel market in India today in the context of the global economic meltdown and the impact it has left on the Indian economy so far and assesses the growth potential of the Indian steel industry from both the supply and the demand sides of the market, going into details for each product and each major player, the price trends for steel products in the domestic market and the current situation related to external trade and the government policy environment. The study provides forecast of steel products demand annually till 2020 under four different scenarios.

The report is extensively chart based and the 138 pages of it contain 190 charts and tables, apart from, and most importantly rigorous analytical content with views of a globally renowned expert in the industry. It is reading must for all related to the business of the steel industry in India.

To see details of contents, please visit
http://www.steelguru.com/reports/detail/Indian_Steel_Market_%253A_Emerging_Reality_%253A_Following_the_Global_Meltdown.html

Report summary: Updated July 2009 Edition
Price: INR 95000 or USD 2000
No of Pages: 138
Format: PDF file
Delivery: By E mail

An inaugural discount of 20 per cent will be provided to bookings made by the 7th of August 2009. Also, those who had bought reports of the same author earlier through stelguru.com will be entitled to a discount of 20 per cent over and above the inaugural discount.

Ordering the report is simple. Pease send a mail to reports@steelguru.com for getting an invoice

Steel prices in India likely to fall up to 5pct by September - CMIE

10:39 PM Unknown No comments

PTI reported that Economic think tank Centre for Monitoring Indian Economy expected dip in contract prices of iron ore and coal, steel prices are like to fall by 3% to 5% by September.

CMIE in its monthly review of the Indian economy said “We expect domestic steel prices to dip by around 3% to 5% across product categories in the next 3 months ended September 2009.”

It said “The domestic prices of steel is already 7% to 8% higher than global prices which is indicative of the fact that the prices are yet to be bottomed out domestically.”

CMIE added that the uptrend in international prices seen in June might not sustain due to overcapacity in the global steel industry and that the domestic steel prices move in tandem with international prices.

It said “While the prices will remain weak, the revival in steel demand will sustain in 2009-10, driven by healthy demand for long steel products used in construction and the expected pick up in housing construction in the H2 of the year.”

(Sourced from Press http://www.steelguru.com/news/index/2009/07/27/MTAzOTA1/Steel_prices_in_India_likely_to_fall_up_to_5pct_by_September_-_CMIE.html)

Steel joist (Beam) prices changes in India on July 22

10:45 PM Unknown No comments

JSTI
GR A
250X125
Location Change

Mumbai 0

Chennai -500

Kolkata 0

Delhi 520

Mandi 312

Raipur 0

Kanpur 0

Rudrapur 0

Ahmedabad 0

Indore 0

Bangalore 0

Change is on July 22nd 2009 as compared to July 21st 2009
Change is in INR per tonne

To know exact prevailing steel prices in India in 22 locations on daily basis, subscribe to services of www.steelprices-india.com by registering or sending a mail to admin@steelprices-india.com Please note that this is a paid service.

(Sourced from http://www.steelguru.com/news/index/2009/07/23/MTAzMzgy/Steel_joist_%2528Beam%2529_prices_changes_in_India_on_July_22.html