Monthly Archives: July 2013

Semi Finish Prices in Maharashtra improves as Production Cut hits Supply

MS Ingot, MS Billet and Re-bar prices in Maharashtra yesterday moved up by Rs 200-300/MT as production cut hits the supply.

Maharashtra based manufacturer have reduced the production upto 40-50%, as they have shifted to late working hours to produce long steel, due to slow prices and low power tariff.

Mumbai MS Ingot prices are offered at Rs 28,600/MT, Jalna. Billet are offered at Rs 28,700/MT and Re-bar 12 mm in Mumbai are sold at Rs 32,300/MT.

 “Manufacturer are making cartel to support the falling price, which is likely to have short term impact but long term demand for finished materials can only support the prices,” said a well know Re-bar trader based in Mumbai.
SteelMint also learned that Raipur Mini Steel Plant Association, in a AGM meeting yesterday has decided to hold the Ingot production from 3rd August in protest of low conversion, high sponge prices and power tariff, for a minimum of 5 days.
“Protest to cut Ingot production was necessary over falling conversion and high sponge prices. If it continues for 7 days, we are very sure that sponge prices will reduce as we require minimum Rs 8500 conversion from Sponge prices” stated Ingot manufacturer based in the region.

Presently, MS Ingot in Raipur are offered at Rs 26,000-26,100/MT (basic), Sponge are offered at Rs 18,500/MT, and Re-bar 12 mm are sold at Rs 29500-800/MT.
All prices are basic. ED and taxes extra

 

Essel Mining Cuts Iron Ore Prices by Rs 400/MT w.e.f 1st Aug '13

Essel Mining Industries Limited (EML), a company of Aditya Birla Group and a prominent miner of Iron ore, having mining operations in the state of Odisha, has lowered Iron ore prices w.e.f the 1st of August 2013.

Iron ore lumps is being offered at Rs 400/MT less and fines by Rs 100/MT, as compared to prices revised in mid-July.

EMIL Iron Ore Prices (Rs/MT) w.e.f 1st Aug '13:

Iron ore lumps – Down by Rs 400/MT

5-18 mm & Fe 65: 6,525

5-18 mm & Fe 63: 6,175

10-30 mm & Fe 65: 5,875

10-30 mm & Fe 63: 5,425

Iron ore fines – Drop of Rs 100/MT

Fe 63: 2,075

(Prices loaded to wagons at major sidings in Barbil, Odisha; Including royalty)

Earlier to this, the miner had lowered lumps prices by Rs 200/MT a couple of weeks back. Whereas, prices of fines were unchanged.


For more details, contact

Seema Goenka

(seema@steelmint.com)

 

India: Cement, Steel, and Power Industries Working Under Capacity

Owing to the slumped demand from the Domestic and International market, Industries have cutoff their production and working hours lower than their capacity. 

Cement Industry experts says that currently due to the monsoon and weak domestic and overseas demand production unit is only working with their 60-70% of the capacity. 

Sponge iron mills are also cutting off their production drastically by 50%, due to weak demand from the market.

Power Sector's new projects are on hold and running projects also working on 15-20% under capacity.

 

Coal Ministry Invites Proposals from PSU's for 5 Lignite mines

Initiating the process of allocation of lignite mines, the Coal Ministry has invited proposals from Gujarat and Rajasthan PSUs for allotting mines for commercial mining, under ground coal gasification.

The development follows the government allocating coal mines to central and state PSUs.

“The government has decided allocation of suitable lignite blocks to the state government companies located in the state of Gujarat and Rajasthan for mining of lignite/underground coal gasification (UCG),” according to a Coal Ministry document.

The five lignite blocks on offered are Panandhro extension, Bharkandanm and Ghala in Gujarat, Nagurda–Joranda in Rajasthan and Vastan (UCG block) in Gujarat, the Ministry added.

“The blocks available for allocations are under the subjects rules for specified end uses i.e. power and commercial mining as well as taking up UCG,” it added.

“Accordingly, applications are invited from the government companies/corporations from the states of Gujarat and Rajasthan. Therefore, the state governments are requested to advise their respective PSUs/undertakings to submit their applications,” the Ministry said.

Beginning the process of coal blocks allotment, the government has allocated 14 coal mines to central and state PSUs, including four to NTPC earlier this month.

The allocation of the blocks, having a geological reserve of 8,31 MnT, will lead to an investment of more than Rs 1.6 lakh crore in the power sector, it said.

Of the four coal blocks allocated to NTPC, two are in Chhattisgarh and the remaining two in Odisha. The blocks have reserves of 1,995 MnT of coal.

Other PSUs that have been allocated mines include Neyveli Uttar Pradesh Power Ltd, Odisha Thermal Power Corp, Jammu & Kashmir State Power Dev Corp, Chhattisgarh State Power Gen Co Ltd, Andhra Pradesh Generation Co, Maharashtra State Power Generation Co, Rajasthan Vidyut Utpadan Nigam and Punjab State Power Corp Ltd.

– Sourced 

 

Steel Ministry Becomes the First Ministry of Government of India to Get ISO: 9001:2008 Certification

The Ministry of Steel under Government
of India has become the first Central Ministry to be awarded ISO 9001:2008,
Quality Management System certification. The Bureau of Indian Standards has
conferred the Ministry with the certification for three years, w.e.f.
25.06.2013 to 24.06.2016.

Shri Sunil Soni, DG-BIS (Directorate
General, Bureau of Indian Standards) presented the certificate to the Union
Steel Minister, Shri Beni Prasad Verma here today. The certificate was handed
over in the presence of the Secretary, Ministry of Steel Shri D.R.S.Chaudharand other officials of the ministry.

The Minister appreciated the efforts of the officials of the Ministry of Steel
in accomplishing the feat and expressed happiness over the Ministry being the
first amongst the Central Government Ministries to have received the
certificate.

The Ministry of Steel has been conferred with the coveted certification under
the able leadership of Minister of Steel, Shri Beni Prasad Verma. The Minister
has been laying emphasis on streamlining systems and procedures in the Ministry
to improve its working and bring about transparency.

ISO 9001 is quality management system which codifies quality standards in every
area of organization's functioning. Many Governments around the World have made
ISO 9001 a mandatory requirement.

Even developing countries, like Malaysia and
Kenya have made it a mandatory requirement in their government organizations.
In India, Ministry of Steel being first to get the certification has covered
all its sections under ISO 9001:2008.

The certification will help in
developing Standard Operating Procedures (SOPs) and will aid in streamlining
and improving the quality of services provided by the Ministry. It will help in
benchmarking of SOPs and improve quality consciousness by focusing on strategic
issues and bring about transparency.

The certification involves laying down the work processes, manage and control
them with the aim of continuous improvement. ISO certification will result in
transparent performance of the Ministry and quick delivery of results to the
beneficiaries.

 

Scrap Deal settled with Japanese Suppliers 

Only a single contract has been signed with the Japanese suppliers in the Far Eastern scrap market during the last week of July. 

Business with American and Russian exporters has dried up. Besides, scrap prices are floating in a very numb state. 

South Korean companies have demonstrated a modest demand for the Japanese material. Last week, Korea Iron & Steel (KISCO) imported HMS 2 at USD 332/MT FOB. The prices have not been revised, so HMS 2 is available at USD 332-337/MT FoB. Most of the South Korean consumers have rejected considering the prices. 

US suppliers tied up no deals with the Far Eastern consumers, as the latter is waiting for price reductions. US scrap collectors have corrected their offers to Taiwan.

HMS 1&2 is being quoted at USD 354-357/MT CFR Taiwan, up by USD 2-3/MT since last week. 

Current bid prices did not exceed USD 352/MT CFR Taiwan. Offers of HMS 1 to South Korean consumers still is at USD 365-370/MT CFR.

 

India: Chennai Scrap Market in a static Mood This July

Chennai's domestic Scrap market is moving at a stable pace. Chennai HMS 1&2 (80:20), with an average price, is quoted at around 23,000/MT (Basic Price). Similarly, imported scrap offers coming from Europe HMS 1&2 (80:20) are at around USD 355-360/MT CFR Chennai . 

 A Chennai based trader said that no big deal occurred in last 3-4 weeks especially on imported scrap and further the traders are avoiding to stock scrap.

On the other side, Rupees has touched 61+ against the USD which has discouraged the importers from buying the materials.

As a result, domestic buyers are opting to buy domestic scrap instead of imported scrap. Monsoon is another hurdle which the importers are facing presently.

However, in July the total quantity of Ferrous scrap imported is at around 440,000 MT, out of which Chennai port has received nearly 98,700 MT. Booking of the material was done in May.

 Out of the total scarp imported at Chennai port, 31,800 MT were from the Europe, 20,800 MT from Africa, 12,700 MT from Asia and 33,400 MT were from other countries.

 

Iron Ore E-auction in Karnataka on 6th Aug '13

E-auction for Iron Ore in Karnataka is to be held on 6th August '13.

The total quantity of Iron ore offered for sale is 3, 60,000 MT from NMDC Donimalai & Kumarswamy mines. 

The whole bidding process is conducted by MSTC on behalf of monitoring Committee.

Opening time of auction 11:00 Hrs IST and Closing time 13:00 Hrs IST

Inspection of material will take place between 31.07.13 to 05.08.13

 Details of Quantity offered:

Iron ore fines: 1, 00,000 MT

Iron ore lumps: 2, 60,000 MT 

Royalty 10%, VAT 5.5% (on auction price and royalty), FDT 12% are applicable

 

 

 

India: Mill Scale Prices move up Over Improved Demand

Mill Scale prices in Indian domestic market have moved up by Rs 200 per ton on improved buying from Indian exporters.

According to market sources, last trade for Fe 70/68% was at Rs 5,450 per ton (delivered to Vizag port), which was at Rs 5,250/MT few days back.

Sources said that prices have gone up on account of falling Rupee, which had given Indian exporters better realization.

In the global, market prices are hovering in the range of USD 120-121/DMTU CFR China.

IRON ORE FINES

In Indian domestic market, Fe 58% is hovering in the range of Rs 2,800-3,000/MT, when delivered to Vizag port.

 

 South Africa : Transnet Export Coal Line to exceed 81 MnTPA Capacity

Transnet Freight Rail is introducing a new 200 wagon train service on its export coal line that will run directly from the Richards Bay Coal Terminal to the mines in Mpumalanga.

This will help the companies to improve their capacity which is likely to exceed by 81 MnTPA  in the next financial year, should the coal be available. 

The new service, called Project Shongololo (millipede), entails bypassing the Ermelo yard leg of the service, has significantly reduced the train handling processes.

Commenting on the initiative, TFR Chief Executive, Siyabonga Gama, stated that this service will drastically reduce cycle times from an average of 58 to 41 hours for locomotives and wagons. 

“Decrease in handling processes of trains allow higher reliability, which is equivalent to improved sustainability and better service predictability,'' he further added. 

Prior to the introduction of the service, trains were built at the Ermelo yard through a process involving dispatching 100 empty wagons to the mines for loading and then returning them to the Ermelo yard to be built into 200 wagon trains, which are then forwarded to RBCT. This process was difficult to carry  significant train handling and shunting to couple and de-couple wagons.

Project Manager, Pragasen Pillay said ,”The service will increase weekly railed export coal capacity from the current 1.4 MT per week to a potential capacity of 1.85MT per week, equating to a 30% increase in current capacity. The number of exported coal trains per day will increase from 25 to 32 trains. And moving into the fourth quarter of this year we will see 34 trains per day.”