METALS WEEKLY: China steel production dips to 1.663mtpd; Base metals spot prices rebound 4-5% WoW on global cues
Deepak Vaishnav
METALS WEEKLY: China steel production dips to 1.663mtpd; Base metals spot prices rebound 4-5% WoW on global cues
- Indian tube grade HRC prices declined 1.2% WoW and high grade HRC and long product prices were flat. HMS scrap prices increased 1.4% WoW and sponge and pig iron prices remained flat.
- South European steel prices declined 1.1% WoW as demand outlook remained bearish and North European steel prices were marginally up by 0.4% WoW. Prices declined in Russia (0.4% WoW) and the Middle East (2.6% WoW) while they increased in North America (0.6% WoW). Prices showed a mixed trend in China.
- Chinese spot iron ore CIF prices declined 2% WoW to USD144/t. According to media reports Vale agreed with Taiwan’s China Steel to a 23% cut in iron-ore prices over October-December from those over June-August.
- China’s steel output (1.663mtpd) dipped slightly in mid-November but the fall in output appears to have slowed according to China Iron & Steel Association (CISA). Profit margins from 77 steel mills tracked by the association dropped to a record breaking low of .047% in October, an 82.6% drop from those a month earlier.
- LME spot base metal prices increased 4-5% WoW, reacting to global cues.
- Vale’s USD8b 90mt a year Serra Sul iron ore mine faces a two-year delay and will not operate until 2016, mainly due to delays in the licensing process. The green-field mine had previously been expected to come on stream in the second half of 2014.
Stock Exchange announcements
- JSW Steel Ltd crude steel production increased 18% YoY (up 5.3% MoM) to 0.6mt in November as availability of iron ore improved. Capacity utilization at Vijaynagar improved from 63% in October to 68% due to increased receipt of iron ore supplies from e-auctions. JSW has so far received 37% iron ore at the plant’s site out of a total of 5.67mt procured in e-auctions.
- Mr Amitabh Gupta has been appointed Chief Financial Officer (CFO) of Hindustan Zinc from 01 December 2011.
- The promoter and promoter group of Usha Martin bought 2m shares in the company from the open market last week.
- The promoter and promoter group of Adhunik Metaliks bought 363,236 shares in the company from the open market last week.
- Mr Neeraj Singhal acquired 55,295,885 shares in Bhushan Steel through inter se transfer among promoters.
- Deutsche Securities Mauritius sold 23,831 shares in Prakash Industries through the open market sale last week.