INDUSTRY UPDATES on 29th October, 2012

on 29th October, 2012

JSW Steel sees challenges on rising imports
 “Global economic situation continues to remain challenging with increasing uncertainties, impacting the prospect of economic growth across geographies. IMF projects World economy to grow at 3.3%. The Indian economy is expected to get back in growth mode post recent economic reform announcements. The world's crude steel production for the first nine months of 2012 at 1149 million tonnes, recorded a marginal growth of 0.6%. While some countries have recorded a reasonably good growth in steel production (i e USA 5.3%, Russia 4.3%, Korea 3.0%), continuing recessionary trends in Europe and slowing Chinese economy are expected to hold world steel production at previous year's level of 1518 million tonnes. Global steel production has already shown a decline of 4% during July to Sept 12 vis a vis previous quarter.”

JSW said “Indian steel industry has witnessed a subdued demand growth of 2.8% during the period Jul-Sep'12 vis a vis 7.7% in the previous quarter, coupled with rising imports mainly from FTA countries.”

It said “Whilst, domestic steel demand is expected to be steady, rising imports and availability of mineral resources will be major deterrents depriving Indian steel industry a level playing field vis a vis their global peers.”
(Steel Guru)
Coal prices dip but Indian buyers wait on sidelines
Prompt physical coal prices slipped by 50-60 U.S. cents a tonne for the third day in a row as weak demand from India and China outweighed anxieties about South African strikes spreading to disrupt exports.
Although India's monthly imports have been strong and steady all year, spot buying for Q4 has been disappointing, suppliers said.
"Having waited for prices to drop to $80 for South African before buying and then seen the market fall below that level, they've backed off now because it may not have hit the bottom yet," one European trader said.
November and December loading South African cargoes were bid at $74.00 a tonne FOB Richards Bay on Friday - having fallen to a nearly three-year low of $77 on Wednesday.
Bids of $74 which were dismissed as unrealistically low by many players on Thursday seemed on Friday far more realistic a reflection of the market's weakness in the last two months of the calendar year, traders and utilities said.
While prices appear vulnerable to further falls, Indian buyers in particular will remain sidelined, they said.
A revival of Asian spot buying is unlikely in the near-term, Barclays Capital said in a research note on Friday.
"Barring any unexpected large-scale supply disruptions, we only expect prices to receive support when large importers such as India and China become active on the prompt market again," Bar Cap said.
"This is unlikely to happen in the very short term as China's inventories are still plentiful and India is banking on further downward price moves," the note said.
Around 1.2 million tonnes a year of coal production has been halted by strikes in South Africa which have cost the continent's largest economy over 10 billion rand this year.
However, the coal market has been largely unmoved because there has been no impact on rail transport or port operations and the market remains oversupplied, Deutsche Bank said in a note on Friday.
"Widespread signs of a production response are lacking, and we are therefore neutral to negative on thermal coal pricing in the near term despite the already-low level relative to marginal costs," Deutsche Bank said.
(Hellenic Shipping News)
Indian iron ore mining mess - Is INR 35000 loss in Goa notional

Mining operators and iron ore exporters in
Goa slammed the findings of the Justice MB Shah Commission into illegal mining, terming the INR 35,000 crore loss it has reported only notional.

Mr Shivanand Salgaocar president of Goa Mineral Ore Exporters Association also questioned the methodology of the commission's inquiry. The loss of INR 35,000 crore is purely notional.

Mr Salgaocar said that "The Shah commission report said that 578.42 hectares of land has been encroached and there was illegal mining happening there. These calculations are based on wrong assumptions, misinterpretation of facts, wrong reading of Google maps and faulty survey done using handheld GPS."

Mr Salgaocar said that GMOEA, which comprises of over 30 mining companies and ore exporters would file a petition against the Supreme Court imposed ban on mining operations in Goa. The court also asked a central empowered committee to submit a report on illegal mining in the state.

The Shah commission, which submitted its report to parliament last month has pegged Goa's mining scam at INR 35,000 crore.
(Steel Guru)
Indian iron ore mining mess - Odisha starts prosecution against 77 miners

The forest and environment department of Odisha has decided to initiate prosecution against 77 erring mines owners.

In a letter to the collectors of Keonjhar, Sundargarh, Jajpur, Balangir, Mayurbhanj and Rayagada districts, the department has directed to initiate prosecution against 77 defaulting mines.

The department, which had earlier directed the collectors of Keonjhar, Sundargarh, Mayurbhanj and Rayagada to file prosecution against 43 mines for flouting the provisions of the said Act, has recently directed the collectors of Keonjhar, Sundargarh and Jajpur to initiate prosecution against 20 more defaulting mines.

Acting on the information of the steel and mines department, the F&E department has so far initiated steps to move prosecution against 41 mines in Keonjhar, 21 mines in Sundargarh, 10 mines in Mayurbhanj, three mines in Rayagada, one manganese mine in Balangir, one mine in Jajpur district.

The department has asked the Keonjhar collector to file prosecution against Putulpani Iron Ore Mines of Gandhamardan Sponge Industries, Jurudi Iron Ore Mines of Kalinga Mines Corporation, Balda Block Iron Ores Mines of Serajjuddin & Co and others; it has also directed the Collector of Sundargarh to move prosecution against Jindal Steel and Power, Tensa; Kurmita Iron Ore Mines of OMC; Koira Iron Ore Mines of Essel Mines Industries and others.

Similarly, it has also asked the collector of Mayurbhanj to initiate prosecution against Goru Mahisani Iron Ore Mines of GC Misra and Maharajpur Iron Ore Mines of DC Das and others.

These aforesaid mines have violated provisions of Environment Impact Assessment (EIA) Notifications 1994 and EIA Notification 2006 under Environment (Protection) Act 1986 since they have produced minerals without prior environment clearance (EC) or produced more than the specified quantity as mentioned in the EC
(Steel Guru)
Iran cement output amounts to 36 million tonnes in 6 months

Mr Esfandiar Salarvand MD of Fars & Khuzestan Cement Company as saying that Iran's cement output amounted to 36 million tonnes in the first 6 months of the current Iranian calendar year which began March 20.

Mr Salarvand said that Iran with a total production of 66 million tonnes ranked as the world's fourth largest cement producer in 2011. Iran plans to export 12 million tonnes of cement in the current calendar year.

In September, Mr Vajihollah Jafari deputy industry minister of Iran said that Iran plans to produce 75 million tonnes of cement by the end of the current Iranian year (March 20, 2013).

Mr Mehdi Ghazanfari industry, mine and trade minister of Iran said in August that the country's current cement production capacity stands at 74 million tonnes. The figure will reach 110 million tonnes by 2015.
(Steel Guru)
Bahri, Saudi Aramco reach agreement on merger of Vela’s fleet & operations with Bahri 
Expected to create one of world’s largest shipping cos
The National Shipping Co. of Saudi Arabia (Bahri) has announced that it has reached an agreement with the Saudi Arabian Oil Company (Saudi Aramco) and Vela International Marine Ltd (Vela), a wholly-owned subsidiary of Saudi Aramco, on the terms and conditions of the merger of the fleets and operations of Bahri and Vela. This announcement follows the memorandum of understanding (MoU) signed in June 2012. 
Under the terms of the agreements, Vela will transfer to Bahri the ownership of its entire fleet, which consists of 14 very large crude carriers (VLCCs), a floating storage VLCC, one Aframax tanker and four product tankers. In addition, Vela’s vessel-based personnel and a number of shore-based personnel (to be determined later) will transfer to Bahri. Post-transaction, the combined shipping businesses of Vela and Bahri will be integrated within Bahri’s corporate structure. 
Pursuant to the terms of a long-term shipping contract, which has an initial term of 10 years, Bahri will become the exclusive provider of VLCC crude oil shipping services to Saudi Aramco for crude oil sold by Saudi Aramco on a delivered basis. Saudi Aramco will continue to manage all crude oil marketing and sales directly with its customers, and Bahri will provide reliable transportation services to Saudi Aramco. Furthermore, the two companies plan to explore ways to expand their cooperation in the maritime sector.
Bahri and Vela have also agreed to discuss terms of an interim arrangement to employ Bahri’s current VLCCs within Saudi Aramco’s existing crude oil VLCC transportation programme. The interim arrangement is expected to take effect from January 1, 2013 until the long-term shipping contract becomes effective pursuant to the terms of the transaction agreement. 
This agreement represents a transformational step for Bahri as it significantly expands Bahri’s business, provides it with a stronger financial and commercial position, and enhances its position as a global marine transport leader. It enables Bahri to become a national shipping champion that can achieve Bahri and Saudi Aramco’s aspirations to localise and develop a strong national maritime industry and will put Bahri in a position to support Saudi Arabia’s growing petroleum, chemical and manufacturing industries, and provide greater security in marine transportation. 
The transaction is subject to a number of conditions, including approval by Bahri’s shareholders at an Extraordinary General Assembly and obtaining regulatory approvals including, without limitation, the approval of the Capital Market Authority, the release said.
(Exim India)

No comments:

Post a Comment