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 states. 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 80:20 HMS 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%:: Alang 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 80:20 HMS 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 progress. 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.