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					NEWS: 01.06.2009

                  TODAYS TOP HEADLINES

  ***   Indian long product prices continue their down slide
  ***   Metaldyne Files for Bankruptcy; Will Sell Assets
  ***   Turkish mill cuts scrap buying prices again
  ***   US scrap prices down $10 a long ton, could fall further
  ***   India scrap importers want restrictions eased
  ***   India to consider additional tax on steel imports
  ***   India’s new steel minister under pressure to curb imports
  ***   East Asian scrap import market sees 'price correction'
  ***   Scrap demand set to rise in GCC region, BIR hears
  ***   Turkish mills may be away from scrap market until mid-June
  ***   Russian exporters may drop scrap prices for Turkey
  ***   Chinese FeSi prices stable but EMM and Mn alloysluggish
  ***   Pig iron imports surge in China
  ***   Gusa Nordeste eyes pig iron price improvement
  ***   Downturn in FeCr market bottomed says IFM
  ***   Chinese ferrosilicon market slow and stable
  ***   Ferromanganese price may continue to dip in China

'Tightly calibrated' scrap market facing jolt: Dienst ::
The ferrous scrap market might be described as “sloppy, choppy and tight,”
according to Daniel W. Dienst, chief executive officer of Sims Metal Management
Ltd., and he doesn’t expect it to become any more manageable any time soon. In
fact, Dienst says a “perfect storm” might be brewing, leaving the industry in for a
jolt when demand returns.

Aluminum market sees some rays of optimism
The worst of the downturn could be over for the aluminum industry, although
many risks lie ahead, according to a growing chorus of aluminum market
observers.A new day dawning? It might be June, but the aluminum market is only
now seeing the first signs of spring. “We’re not out of the woods, but an
adjustment has occurred,” one source said.

Tata Motors net profit down 50.65% in FY'09

Tata Motors reported a 50.65% fall in its net profit at Rs 1,001.26 cr for the 2008-
09 fiscal.

Rupee may appreciate to 46/dollar in 12 months’
Rupee is likely to appreciate to 46 a dollar in the backdrop of a stable govt, says
a Goldman report.
          KCM to produce a Cu-Co alloy::
          danta Resources’ Konkola Copper Mines (KCM) in Zambia plans to more than
          double its output of copper cathode to 305,000 tonnes in 2009, significantly
          above the 140,000 tonnes produced in 2008

          Downturn in FeCr market bottomed says IFM ::
          ternational Ferrochrome Metals (IFM) said last week that they believed that the
          down turn in the global ferro-chrome market seemed to have bottomed and that
          the current level of 69¢/lb

          World steel demand set to weaken - report::
          World steel demand is set to be substantially weaker this year, affecting sales of
          Australian iron ore and coking coal, according to a new industry report. The
          analysis from National Australia Bank (NAB)

          Russian steel makers again apply for hike in import duty on coated steel::
          SteelOrbis reported that Russian steel producers, including Magnitogorsk Iron
          and Steel Works, Novolipetsk Steel and Severstal, have resubmitted for the third
          time their application to Russia’s Ministry of Industry and Energy to increase the
          duty on coated steel imports under five HS codes, from the current five percent to
          15.6% for a period of three years, Russian magazine Metal Supply and Sales

          According to the applicants, the growth of volumes of cheap imported coated
          steel products, mainly from Kazakhstan, China and Ukraine, against the strong
          decrease in domestic demand may cause them to incur substantial losses
          estimated at RUB 7 billion in 2009.

          According to the data provided by the steel producers in their application, during
          the first four months of 2009 Russia’s coated steel product output decreased to
          586,000 tonnes compared to 872,000 tonnes in the same period of last year.
          During the last three years Russia’s output of coated steel products increased
          from 858,000 tonnes in 2005 to 2..6 million tonnes in 2008, while annual
          consumption in the domestic market rose by 47 % from 1.5 million tonnes in
          2005 to 2.2 million tonnes in 2008. Against this background, in the last three
          years the share of imports consistently increased, while the share of Russian
          steelmakers in the domestic coated steel products market went down by 76% in
          the same period.

          In their first application, the Russian steel producers asked the Ministry of
          Industry and Energy to increase the duty on coated steel imports to 33% while in
          their second application they sought an increase to 17%.

*** Indonesian zircon sand prices up
*** Hainan zircon sand supply tight and prices at high levels
*** Ilmenite concentrate demand not strong in China
*** Manganese ore market moving slowly in Brazil
*** Magnesium market to keep sluggish in June
*** Jiangtai Coal Chemicals to put magnesium project into production
*** Antimony trioxide market stable in China
*** Copper concentrate market stable
*** Crude mercury market goes up
*** Suppliers to raise quotations for copper cathodes
*** Silicon metal prices drop slightly in China
*** An aluminum hydroxide project to come on stream in Hunan
*** Low-grade ferronickel supply remains tight
*** Aluminum ingot market sees few deals
*** Deals remain thin in tin market
*** Nickel price expected to go up
*** Tungsten concentrate market remains unchanged
*** Germanium dioxide market stagnant in China
*** Tungsten scraps market stands stable
*** Indium metal market keeps stable in China
*** Some smelters unwilling to sell bismuth metal in Hunan
*** Manganese market quiets down in China
*** Manganese market quiets down in China
*** Selenium market in thin trading
*** Cobalt cathode market sensitive

*** Graphite electrode market for export sees no improvement
*** White fused alumina market stable and slow
*** Brown fused alumina market still inactive
*** Chinese chromium market to slow
*** Chinese chromium metal market slow
*** Chinese traders refuse to accept high offers of chrome ore
*** Chinese vanadium demand comparatively stable
*** Silicomanganese price holding stable in China
*** More than 50% manganese ore miners out of production in China
*** Ferromanganese price may continue to dip in China
*** Jinneng Group still out of production
*** Chinese ferrophosphorus market stabilizes at a low level
*** Chinese ferromolybdenum price stable
*** Chinese molybdate market remains flat
*** Wuhai Junzheng produces ferrosilicon with full capacities
*** Chinese ferrosilicon market slow and stable
*** US ferrovanadium prices increasing but procurement still low
*** Manganese ore market moving slowly in Brazil
*** US ferrochrome prices increase but market still quiet

          Scrap prices improve marginally at Mandi::

          Melting scrap
          Location                          Change                   %
          Kolkata                           0                        0..0%
          Mandi                             89                       0..5%
          Mumbai                            0                        0..0%

          Change is on May 28th 2009 as compared to May 27th 2009
          Change is in INR per tonne

          Ship breaking scrap prices plummet by 3%::
          Category                          Grade           Change           %
          Plate cuttings                    Rolling         -200             -1.1%
          Ships                             Melting         -500             -3.2%
Change is on May 28th 2009 as compared to May 27th 2009
Change is in INR per tonne

Sponge Iron falls by 2% at Raipur::
Location                       Change                       %
Kolkata                        0                            0..0%
Raipur                         -200                         -1.5%

Change is on May 28th 2009 as compared to May 27th 2009
Change is in INR per tonne

Sponge iron and pig iron continue weakening at Raipur::
Sponge iron                                      Pig Iron
-100                                             -100

Change is on May 29th 2009 as compared to May 28th 2009
Change is in INR per tonne

Scrap prices improve marginally at Mandi but dip at Chennai::

Melting scrap
Location                                  Change
Chennai                                   -100
Mandi                                     89

Change is on May 29th 2009 as compared to May 28th 2009
Change is in INR per tonne

India Government paves the way for big SEZs::
Projects Today reported that the Union Government has reportedly decided not
to apply an area limit of 5,000 hectare for SEZs if 2 or more such zones are
merged thus making way for big SEZs in India.

In an amendment to the SEZ rules, the developers are given more freedom on
selecting the location by defining vacant land where a special zone can be set up
as land where there are no functional ports, manufacturing units, industrial
activities or structures in which any commercial or economic activity is in
As per the SEZ rules published in the Gazette of India, the government may
consider on merit the clubbing of contiguous existing notified SEZs
notwithstanding that the total area of resultant zones exceeds 5,000 hectare.

Hyundai Steel to cut steel prices by up to 20%::
Hyundai Steel said that it would cut prices of its steel products by up to 20%,
following similar moves by domestic rivals.

It said that the price of hot rolled steel would fall by 20% to KRW 780,000 a tonne
from June 1st 2009 from the current KRW 880,000 per tonne.

It also reduced prices of H beam steel by 7% to KRW 900,000 a tonne and rebar
prices by 8.5% to KRW 751,000 a tonne.

Also, the price of hot rolled stainless steel will be slashed to KWR 2.94 million
from the current KRW 3.55 million.

It said that "The move is to secure price competitiveness of our products amid
slow economic recovery."

The move comes after its bigger rival POSCO unexpectedly cut domestic product
prices by up to 20% earlier this month, as a rebound in the South Korean won
threatened to open the door to cheaper imports.

Steel demand tipped to weaken in 2009
According to an analysis by National Australia Bank, global steel demand is likely
to be substantially weaker in 2009, affecting sales of Australian iron ore and
coking coal. The analysis paints a gloomy picture for Australian coal and iron ore
exporters, adversely affected by the troubled United States economy.

The NAB analysis said that "The World Steel Association forecasts global steel
demand to fall by around 15% in 2009 after declining 1.4% over 2008."

The NAB findings come as Australia's largest coal and iron ore producers remain
in negotiations with big steelmakers from Japan and China to determine 2009
contract prices. The NAB report said steel use in the US is expected to fall by
36.6% over 2009.

The report said that "The slump in the US and parts of emerging Asia will
obviously have substantial implications for Chinese and Japanese exports.
These suggest much of the outlook for global steel production growth and hence
demand for Australia's coking coal and iron ore resource of the near term is
levered to the pace of a turnaround in the US economy."

The report said that even if Chinese steel production was curtailed in the short
term, global output should increase robustly during 2011, leading to higher
prices. It said BHP Billiton had reached an agreement with Mitsubishi
Corporation and Nippon Steel for a contract price of USD 128 to USD 129 per
tonne for coking coal, a 57% drop compared to last year.

The report also said the low prices for coking coal could lead to mines in the US
and Canada cutting production, leading eventually to supply constraints. It added
that "Over the next two to three years, we see coking coal prices gradually
increasing from current levels as the global economy recovers, with upward price
pressure in 2011-12."

According to the NAB report, slumping Japanese demand for thermal coal is
likely to be exacerbated by a planned emissions trading scheme in that country.

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