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NEWS: 09.07.12 Top Head Lines for the Day *** India may review export duty structure on iron ore *** Indian molybdenum market softening, prices fall *** Indian bismuth market weak *** Russian ferrosilicon market sluggish *** Russian low carbon ferrochrome prices unchanged *** Russian ferromanganese prices stable *** Russian antimony products price decline slightly *** Russian indium price stable *** Russian ferromolybdenum price continues to decline *** Russian ferrovanadium prices dip slightly *** India Automobile Market Slowdown may Impact Rubber, Metals Demand *** Most US scrap deals to settle next week, down $35-40/l.t *** Ferbasa lowers Q3 ferrochrome prices *** Manganese spot prices ease on weak steel margins *** Scrap import market stable and quiet in East Asia *** Weekly scrap wrap-up: Markets quiet as holidays approach *** Indian FeCr sellers lower prices on poor Chinese demand *** Ukrainian domestic scrap prices gain selectively in July *** US domestic scrap falls heavily; Turkish level firm *** Indian ferromolybdenum quotations firm on unstable Rupee *** Indian ferrovanadium market in low-tonnage deals *** Chinese ferrosilicon market moves sluggishly *** Malaysia’s Two Ferrosilicon Projects To Impact China’s Calcined pet coke price keeps stable in North China Demand for calcined pet coke from graphite electrode producers declined further in early July, and the price hovers at RMB2,800-2,900t USD444-460tex works. With half production rate, producers have adequate stockpiles now. A source from Huludao, Liaoning province is running at half of its total capacity of 40,000tpy of calcined pet coke. Russian ferrosilicon market sluggish The ferrosilicon market has low demand and stagnat movements in Russia these days, according to sources. Current prices keep at RUB48-50kg USD1,476-1,538t VAT included for ferrosilicon 65%min currently, unchanged from those of last month. A Russian trader with a trading volume of 150tpm for the material stated that his offer holds at RUB50kg India scrap metal prices remain mixed Indian scrap metal prices continued mixed trend on Thursday both in Mumbai and Delhi metal market. In Delhi metal market, copper scrap prices advanced from Rs 478 per kg to Rs 482 per kg while copper rod and copper bar prices ended in red on Thursday. Copper rod and copper bar prices declined to Rs 512 per kg and Rs 514 per kg respectively. Meanwhile, in Mumbai metal market, metal prices almost remain unchanged on Thursday. Copper sheet cutting, brass utensil scrap and aluminum utensil scrap prices advanced in Mumbai metal market. Following are the metals prices in Mumbai on Thursday (Prices in Indian Rupee per ton). Metals Thursday Previous Copper Wire Bars 513000 513000 Aluminium Ingots 138000 138000 Zinc slab 134000 134000 Lead ingot 121000 121000 Tin slab 1300000 1310000 Nickel Cathode 1110000 1110000 Scrap Copper cable scrap 485000 485000 Copper heavy scrap 477000 477000 Copper armetur 469000 469000 Copper utensil 444000 444000 scrap Copper sheet 466000 463000 cutting Brass utensil scrap 318000 317000 Brass sheet cuttings 326000 326000 Aluminum utensil 114000 112000 scrap Delhi metal prices in Indian Rupees per kg Metals Thursday Previous Copper Bars 514 515 Copper Rod 512 513 Copper Scrap 482 478 Zinc Ingots 125-140 125-140 Tin Ingots 1330 1325 Nickel Strip 4 x 24 “ Inco 1270 1205 4 x 4 “ Inco 1245 1250 4 X 4" 1145 1140 Aluminium Ingots 126-146 126-146 Lead Ingots 120-140 120-140 Japanese H2 scrap average prices remain flat It's reported that the average prices of Japanese H2 scrap in Kanto, Central and Kansai region were at ￥25,105/ton in the first week of July, remaining flat from a week earlier. Among them, the average price of H2 scrap in Kanto region was at ￥25,583/ton; that in Central region was at and ￥22,920/ton and that in Kansai region is at ￥26,813/ton, all keeping unchanged in comparison of that in a week earlier Japan’s May stainless scrap exports reduce by 16% m-o-m According to statistics, Japan exported 15,615 tons of stainless scraps in May, falling by 16% from a month earlier. In May, South Korea was the largest importer of the Japanese stainless scraps with 12,658 tons, up by 0.1%; China was the second largest one with 1,480 tons, reducing by 57.4%; Taiwan was the third largest one with 944 tons, decreasing by 54%, all compared to that in a month ago. Meanwhile, the country’s average export prices of stainless scraps in May were at ￥125,429*ton, down slightly in comparison of ￥127,041 /ton in April. Pig Iron Import Prices Weak in East Asian Market Recently, the pig iron import prices have remained weak in East Asian market. It’s known that the transaction prices of pig iron have fallen to US$430/ton C&F in South Korea and Taiwan, US$10/ton lower than that in early June. Furthermore, the Taiwanese steel mills’ import prices of pig iron have dropped further to US$420/ton C&F. However, the import prices of pig iron may stop falling further in the East Asian market as the international scrap prices have been rebounding from the bottom. At present, South Korea’s import prices of the US H1 scrap have rose to US$400/ton C&F. Steel melting scrap price movement on July 5 Melting scrap 80:20 HMS Location Change Bangalore 0 Chennai 0 Hyderabad 0 Kandla 0 Kanpur 0 Kolkata -85 Ludhiana -90 Mandi 89 Mumbai 0 Rudrapur 0 Change is on 5th July as compared to 4th July 2012 Change is in INR per tonne Steel melting scrap price update on July 6 Melting scrap 80:20 HMS Location Change Bangalore 0 Chennai 0 Hyderabad 0 Kandla 0 Kanpur 0 Kolkata 0 Ludhiana 0 Mandi 89 Mumbai 0 Rudrapur 0 Change is on 6th July as compared to 5th July 2012 Change is in INR per tonne Steel plate cuttings price goes down at Alang on July 5 Product Grade Size Change Plate cuttings Rolling 1" -200 Ship Scrap Melting Mixed -100 Change is on 5th July as compared to 4th July 2012 Change is in INR per tonne Steel angle prices dips in Ludhiana and Mandi on July 5 ANGL GR A 65X6 Location Change Ahmedabad 0 Bangalore 0 Chennai 0 Delhi 0 Indore 0 Kanpur 0 Kolkata 0 Ludhiana -209 Mandi -331 Mumbai 0 Raipur 0 Rudrapur 0 Change is on 5th July as compared to 4th July 2012 Change is in INR per tonne HR steel prices on July 5 HRC Tube 2.5x1250 Location Change Ahmedabad 0 Bangalore 0 Chennai 0 Delhi 0 Indore 0 Kolkata 0 Ludhiana -181 Mumbai 0 Change is on 5th July as compared to 4th July 2012 Change is in INR per tonne Sponge iron price movement on July 6 Sponge iron Location Change Bellary 0 Kolkata 0 Ludhiana 0 Raigarh -100 Raipur -100 Rourkela 0 Change is on 6th July as compared to 5th July 2012 Change is in INR per tonne Pencil ingot price movement in major places on July 6 Pencil ingot Location Change Ahmedabad -514 Alang 0 Bhiwari 0 Chennai 0 Durgapur -178 Ghaziabad 0 Hyderabad 200 Jaipur 0 Jamshedpur 0 Ludhiana 0 Kanpur 0 Kolkata 0 Mandi 100 Mumbai -200 Muzaffarnagar 0 Nagpur 0 Raigarh 0 Raipur 100 Rourkela 105 Rudrapur 0 Change is on 6th July as compared to 5th July 2012 Change is in INR per tonne Rebar TMT QST price movement in India on July 6 TMT Fe 415 Location Change Ahmedabad -594 Bangalore 0 Chennai 0 Delhi 0 Hyderabad 0 Indore -400 Kanpur 0 Kolkata 0 Ludhiana 0 Mandi 0 Mumbai -233 Raipur 0 Rudrapur 0 Muzaffarnagar 0 Change is on 6th July as compared to 5th July 2012 Change is in INR per tonne Chinese ferro-alloys - More price falls seen in dull summer Chinese high carbon ferro-chrome, ferro-molybdenum, vanadium nitrogen alloy, electrolytic manganese and silicon prices have edged down as consumer demand weakened in the past week, while other ferro-alloy markets are quiet with prices fluctuating little. TITANIUM SPONGE Trade for Chinese titanium sponge has been thin on the spot market because of weakening demand from downstream industry titanium mill products. Steel scrap market runs with weak price Values for steel scrap run at a low level in Zhuhai, Guangdong lately with local market numbers for HMS at RMB2,680-2,700t VAT excluded delivered currently. Governments in different regions give different preferential tax policy to local steel scrap industries after canceling steel scrap value-added tax refund in January, 2011. Steel scrap market dull in Kunming, Yunnan due to sluggish steel market recently. Current steel scrap prices hold at RMB2660-2680t for HMS 6mm min and at RMB2,550-2,570t for uniformed scrap, all on basis of VAT excluded delivered. As the stalemate in steel market can not break up, the steel scrap market is inactive in Liuzhou, Guangxi. Prices of HMS are at RMB2m580-2,600t VAT excluded delivered. An official of Jinhui Material Recycling Company in Liuzhou, Guangxi told Asian Metal that the company quotes the price of HMS at RMB2,600t VAT included . Domestic steel scrap traders can get preferential tax rate of 0-9%, which is 8-17% for final value-added tax rate. Sources are looking forward to a unified standard as steel industry continues to run sluggishly. Firstly, steel scrap tax policy reform 1. Our government has released many preferential policies for steel scrap industry to encourage recycling of the material. Since 2001, the government began to acquit of value-added tax for recycling. Pig iron prices stable despite dim deals in Shandong Prices for pig iron keep stable for long in Shandong despite dim deals in the market due to the lackluster demand from steel mills. Prevailing prices for pig iron stand in the range of RMB3,040-3,060t Ex works VAT included in Shandong currently. China’s iron ore import prices decline on weak demand It is reported that the prices of imported iron ore were declined in the end of June due to weak demand and the global economic slowdown. According to Chinese Xinhua Iron Ore index, the price of imported iron ore with 63.5% Fe was down by 1 point to 139 points; the price of 58% Fe was down as well to 118 points. Current stock of imported iron ore in China’s 25 main ports is 97.46 million tons, 700,000 tons more than a week ago. The prices of steel in China have been declined in this year, reflects the slowdown of the real estate, automobile and electronic mechanism industries. Moreover, the reluctance of miners to sell their products at lower prices and the caution of steelmakers have led the transaction of iron ore in the market declines, from what analysts predict that domestic weak demand will keeps in short term. Chinese ferrosilicon market moves sluggishly According to participants, recently many producers have reduced their output or halted the production as most consumers do not plan to come back to ferrosilicon market to purchase the material before August at least, so the whole market appears a slow transaction. Recently the mainstream prices keep at RMB6,100-6,200t ex works and about USD1,380t FOB China for ferrosilicon 75%min, and about RMB5,900-6,000t ex works for ferrosilicon 72%min China nonferrous metals output growth slows China Daily reported that China nonferrous metals industry is unlikely to grow in the second half of the year as the economy continues to struggle after officials reported a significant drop in output growth during the first five months. Mr Shang Fushan vice chairman of the China Nonferrous Metals Industry Association said the industry has experienced a huge decline, as figures showed total output of the 10 major nonferrous metals in the first five months was 14.26 million tonnes a 5.1% increase YoY but still well down on the growth of 8.8% in the corresponding period of the previous year. He said that "The development of the nonferrous metals industry largely depends on the country macro economy in the following months, and that's not very good currently, so it is hard to predict what's ahead." However he did say the central government is expected to carry out policies to boost the economy, suggesting he didn't expect the situation to worsen. He added that the output of lead and zinc in the country is reducing and the growth of output of copper, alumina is falling. Mr Shang said "The domestic demand in the industry is weak. The import and export performance is not good either and some companies did not make any profits in the first quarter." According to recent estimates by Wistrategy Consulting a domestic business consultancy focusing on listed companies, the total annual revenue of 24 listed nonferrous metals companies on the Shanghai and Shenzhen stock exchanges will grow by 14.24% this year compared to 35% last year. Wistrategy said that a market oversupply of nonferrous metals still exists and the situation is getting worse with fierce competition. Global Foundry Materials Trend Headlines for the Day Participants watching the aluminum scraps import market Price competition fierce in recycled aluminum alloy ingot market China’s major die-casting zinc alloy producers’ operating rate almost unchanged in June No improvement in copper trading Zinc concentrate suppliers hold back from selling in Chinese spot market Copper scraps deals thin Copper rod market sluggish Chinese silicomanganese 65/17 price weakens slightly with slow demand Chinese imported manganese ore market to decrease softly Carbon anode price declines while sales are stable Nanhan Chemical to increase monthly aluminum fluoride production Chinese medium carbon ferromanganese producers in a hard time Chinese manganese slag demand stays lackluster Indian ferrovanadium market in low-tonnage deals Aluminum ingot price decreases despite interest reduction Trading in tin concentrate market remains sluggish Tin solder price in China stable Nickel sulfate market dull Low purchasing suppresses Chinese tin market Nickel cathodes price may increase in near future Chinese tellurium market stable Chinese selenium dioxide market stable Chinese refined zirconium tetrachloride price stable Chinese ferromolybdenum market softening Chinese zirconium sponge market still sluggish Indian ferrovanadium market in low-tonnage deals Chinese silicon metal market keeps moving down Zirconium oxide market weak Indian ferromolybdenum quotations firm on unstable Rupee Chinese low carbon ferrochrome market keeps slack Few enquiries in Chinese titanium plate market Chinese high carbon ferrochrome market weakens Demand for West African zircon sand turns a little better Titanium pipe market hopeless to recover in the near future Chinese low carbon ferrochrome market keeps slack Few enquiries in Chinese titanium plate market Chinese high carbon ferrochrome market weakens Demand for West African zircon sand turns a little better Titanium pipe market hopeless to recover in the near future Indian ferromolybdenum quotations firm on unstable Rupee Chinese vanadium nitride price softening Antimony trioxide export price stable Antimony ingot export market quiet Tungsten metals market sees little improvement Cobalt monoxide price decreases PrNd mischmetal market quiet Cobalt oxide market quiet with thin transactions Magnesium alloy transactions petty constantly Domestic magnesium ingot market runs smoothly with stable demand Start-type lead battery polar plate decreases slowly Lithium cobalt oxide market moving slowly Lithium hydroxide price keeping stable Participants watching the aluminum scraps import market Following the aluminum ingot price recovery on LME, aluminum scraps import price rebounded much, but the price on LME drops again since late last week. As a result, Chinese consumers are hesitate to import the aluminum scraps these days China’s major die-casting zinc alloy producers’ operating rate almost unchanged in June According to the investigation statistics of 16 major Chinese die-casting zinc alloy plants by Asian Metal, the operating rate of the plants was 42.68% in June, almost unchanged compared with 42.87% in May. Aluminum ingot price decreases despite interest reduction Although the central bank has reduced the interest, the market is still not active and the demand hasn't increased. In fact, after a short rebound in the past few days, the aluminum ingot price began to decrease on Friday. An Inner Mongolia-based producer reported that the aluminum ingot price has also decreased by RMB70tUSD11t to RMB15660- 15700tUSD2486-2492t. “We have tried our best to avoid the market risks. India may review export duty structure on iron ore Economic Times reported that Indian mines ministry is likely to seek review of present export duty structure on iron ore, which stands at 30% on all grades, to boost sagging exports India’s mines minister Mr Dinsha Patel told reporters that "There should be a review. Exports have come down significantly... domestic industry should not be in problem. We will speak to ministries of finance and commerce on this issue.” Mines secretary Mr Vishwapati Trivedi said his ministry will soon present its case before the finance ministry on present duty structure, seeking a review as iron ore exports have come down significantly in the last fiscal. He said that "We are trying to find out the whether this is a time to give boost to the industry, even a temporary, by reducing the export duty. We are positive that we should be able to make a case” He added that his ministry may write to its finance counterpart in next 10 to 15 days.” Ashok Leyland June sales up by 28% Economic Times reported that driven by its light commercial vehicle range 'Dost', Ashok Leyland today reported a 27.9 per cent increase in its sales in June this year at 10,244 units. The city based heavy vehicles major, which is a part of the Hinduja Group, had sold 8,009 units in June, 2011. It sold 7,519 units of heavy commercial vehicle range and 2,725 units of "Dost" range during the month. During April to June 2012, it sold 27,585 units, up by 43.09% from 19,277 units in the corresponding period last year. In the period, it sold 20,337 units of heavy commercial vehicles and 7,248 units from the 'Dost' range. The 'Dost' range of LCVs are being manufactured under an MoU between Ashok Leyland and Japanese-auto major Nissan Motor Company, which is the first product under the partnership.
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