European stainless bar surcharges: some up, some down Alloy surcharges on austenitic stainless steel bar in Europe continue to drift downwards the figures so far announced for January show, while those on ferritic grades show an increase (see table).
This contrasting behaviour reflects the way in which nickel’s overall price weakening in past weeks has masked higher scrap prices to push austenitic surcharge values down. Chromium and molybdenum prices have been relatively stable of late.
WTO panel set up in Chinese raw material export dispute
WTO panel set up in Chinese raw material export dispute
The Dispute Settlement Body (DSB) of the World Trade Organization has established a panel to examine complaints from the US, European Union and Mexico concerning China's export restrictions on raw materials.
China exercised its rights under the WTO and rejected the first request for the establishment of a panel, as Steel Business Briefing reported last month, but the three petitioners again requested the panel, and China cannot block a second request under WTO rules.
The Dispute Settlement Body (DSB) of the World Trade Organization has established a panel to examine complaints from the US, European Union and Mexico concerning China's export restrictions on raw materials.
China exercised its rights under the WTO and rejected the first request for the establishment of a panel, as Steel Business Briefing reported last month, but the three petitioners again requested the panel, and China cannot block a second request under WTO rules.
WORLD STEEL REVIEW, November 2009
Crude steel production in September for the 66 countries reporting to the IISI was 107.0 million tonnes, a drop of only 0.6% over September 2008. The total for the first nine months of 2009 was 866.0 million tonnes, 16.4% down on the previous year's January to September total. However, excluding China, the fall in the year to date production was 30.9% with the September total down by 17.6%. Global crude steel production for the full year may reach 1200 million tonnes, compared to 1326 million in 2008.
In the European Union crude steel production for the 27 countries decreased by 23.7% in September to 13.2 million tonnes, bringing the year to date total down 39.3% to 97.2 million tonnes. Production in the month compared to the previous September was negative in all countries except two: Slovakia and Luxembourg. Germany's production was down by 21.7%, while Italy's dropped by 30.8%. French production fell by 15.3% and in Spain it was down by 34.8%. The UK monthly total fell by 29%. On the other hand, Slovakian production rose by 29.2%, while in Luxembourg it was up 7.6%. The nine months totals were all negative compared to 2008 with German production down 37.5% to 22.6 million tonnes and Italy's down 41.7% to 14.0 million tonnes. Spanish production fell by 36.4% to 9.8 million tonnes, and French steel production was down 37.8% to 9.1 million tonnes. The UK nine months total dropped by 37.9% to 6.9 million tonnes. Polish year to date production was down 35.8% to 5.2 million tonnes.
European car registrations in the 28 countries monitored by ACEA rose by 6.3% in September 2009 compared to 2008, bringing the year to date total down by 6.6% to 10.9 million cars. In Germany registrations jumped by 21% in September, and the nine months total was up 26% to nearly 3 million cars. French registrations rose by 14% in the month, with the year to date total up 2.4% to 1.6 million cars. Italian September registrations were up by 6.8%, although the year to date total decreased by 5.9% to 1.6 million cars. In the UK the monthly total was up by 11.4%, while the nine months total fell by 15.5% to 1.5 million cars. Spanish registrations increased by 18% in September, but fell by 28.6% in the nine months to 677 thousand cars. Total registrations in ten of the new EU member countries decreased by 36.4% in September, and by 28.7% in the nine months to 636 thousand cars.
Crude steel production in the rest of Europe was dominated by Turkey where September production was only down by 1.8%, although the year to date total decreased by 13.5% to 18.5 million tonnes. Steel production in Serbia, however, was up by 75% in September, while the nine months total fell by 53% to 674 thousand tonnes. This was just ahead of the Swiss year to date total which fell by 38% to 672 thousand tonnes.
Russian crude steel production in September fell by 20% with the nine months total down 26.8% to 41.7 million tonnes. Ukrainian steel production, however, showed a slight increase in September, although the year to date total decreased by 32% to 21.5 million tonnes. Kazakhstan's nine months total decreased by 19.6% to 2.8 million tonnes.
On the North American continent US September crude steel production fell by 31.4%, bringing the year to date total to 40 million tonnes, a drop of 47%. Canadian production was down 53% in September, and the year to date total decreased by 52% to 6 million tonnes. In Mexico monthly steel production was 18.5% down, while the nine months total fell by 30% to 10 million tonnes, just ahead of the Spanish and French totals.
In South America Brazilian crude steel production decreased by 13.7% in September, and by 31.7% in the year to date to 18.3 million tonnes. Argentinian production was down by 20% in September, bringing the nine months total to 2.8 million tonnes, a drop of 37%. However, in Venezuela monthly crude steel production fell by 30%, while the year to date total was down 16.2% to 2.7 million tonnes. In Africa and the Middle East, South African crude steel production fell 24% in September, bringing the year to date total to 5.2 million tonnes, a decrease of 26%. Iranian monthly production actually rose by 4% with the year to date total up 11.8% to 8.2 million tonnes putting it ahead of the UK. In Egypt, however, year to date production fell by 16.6% to 4.1 million tonnes, while in Saudi Arabia, year to date production was down 6% to 3.5 million tonnes.
The five major Asian countries - China, India, Japan, South Korea and Taiwan - showed very mixed results in steel production. Chinese production jumped by 28.7% in September, although the year to date total was only up by 7.5% to 420 million tonnes, 48.5% of global steel production. Japanese production, on the other hand, decreased by 18% in the month, bringing the cumulative total down 34% to 60.9 million tonnes. In South Korea production was down just 2.4% in September, and by 14.9% in the nine months to 35.1 million tonnes. India's steel production was flat in September, while the year to date total was up 1.6% to 41.7 million tonnes. Taiwanese production, however, decreased by 25% in September, and by 33% in the year to date to 10.6 million tonnes.
Chinese exports of steel in September reached their highest total in 2009 at 2.4 million tonnes, although this was only just over one third of the total in September 2008. There was a marked increase in the exports of hot rolled plate, reaching 407 thousand tonnes, the highest total since December. Just over half this monthly total went to South Korea with a further 18% going to Vietnam. China's next largest export in September was hot rolled wide strip, at 340 thousand tonnes, although this was down slightly on the August total. Both seamless and welded tubes showed a significant increase in exports, up 20% and 25% respectively on the August total. These four products accounted for just over half of Chinese steel exports in September.
Japanese steel exports also increased to their highest level since March 2008, reaching 3.5 million tonnes in September. The largest exports in September were hot rolled wide strip (970kt), semis (690kt), CR (391kt), zinc coated steel (382kt) and hot rolled plate (359kt). These five products accounted for 80% of Japan's exports in September. Other Asian countries accounted for 86% of total exports in September with South Korea alone accounting for 29% of the total, and China a further 18%.
Credit:steelonthenet
In the European Union crude steel production for the 27 countries decreased by 23.7% in September to 13.2 million tonnes, bringing the year to date total down 39.3% to 97.2 million tonnes. Production in the month compared to the previous September was negative in all countries except two: Slovakia and Luxembourg. Germany's production was down by 21.7%, while Italy's dropped by 30.8%. French production fell by 15.3% and in Spain it was down by 34.8%. The UK monthly total fell by 29%. On the other hand, Slovakian production rose by 29.2%, while in Luxembourg it was up 7.6%. The nine months totals were all negative compared to 2008 with German production down 37.5% to 22.6 million tonnes and Italy's down 41.7% to 14.0 million tonnes. Spanish production fell by 36.4% to 9.8 million tonnes, and French steel production was down 37.8% to 9.1 million tonnes. The UK nine months total dropped by 37.9% to 6.9 million tonnes. Polish year to date production was down 35.8% to 5.2 million tonnes.
European car registrations in the 28 countries monitored by ACEA rose by 6.3% in September 2009 compared to 2008, bringing the year to date total down by 6.6% to 10.9 million cars. In Germany registrations jumped by 21% in September, and the nine months total was up 26% to nearly 3 million cars. French registrations rose by 14% in the month, with the year to date total up 2.4% to 1.6 million cars. Italian September registrations were up by 6.8%, although the year to date total decreased by 5.9% to 1.6 million cars. In the UK the monthly total was up by 11.4%, while the nine months total fell by 15.5% to 1.5 million cars. Spanish registrations increased by 18% in September, but fell by 28.6% in the nine months to 677 thousand cars. Total registrations in ten of the new EU member countries decreased by 36.4% in September, and by 28.7% in the nine months to 636 thousand cars.
Crude steel production in the rest of Europe was dominated by Turkey where September production was only down by 1.8%, although the year to date total decreased by 13.5% to 18.5 million tonnes. Steel production in Serbia, however, was up by 75% in September, while the nine months total fell by 53% to 674 thousand tonnes. This was just ahead of the Swiss year to date total which fell by 38% to 672 thousand tonnes.
Russian crude steel production in September fell by 20% with the nine months total down 26.8% to 41.7 million tonnes. Ukrainian steel production, however, showed a slight increase in September, although the year to date total decreased by 32% to 21.5 million tonnes. Kazakhstan's nine months total decreased by 19.6% to 2.8 million tonnes.
On the North American continent US September crude steel production fell by 31.4%, bringing the year to date total to 40 million tonnes, a drop of 47%. Canadian production was down 53% in September, and the year to date total decreased by 52% to 6 million tonnes. In Mexico monthly steel production was 18.5% down, while the nine months total fell by 30% to 10 million tonnes, just ahead of the Spanish and French totals.
In South America Brazilian crude steel production decreased by 13.7% in September, and by 31.7% in the year to date to 18.3 million tonnes. Argentinian production was down by 20% in September, bringing the nine months total to 2.8 million tonnes, a drop of 37%. However, in Venezuela monthly crude steel production fell by 30%, while the year to date total was down 16.2% to 2.7 million tonnes. In Africa and the Middle East, South African crude steel production fell 24% in September, bringing the year to date total to 5.2 million tonnes, a decrease of 26%. Iranian monthly production actually rose by 4% with the year to date total up 11.8% to 8.2 million tonnes putting it ahead of the UK. In Egypt, however, year to date production fell by 16.6% to 4.1 million tonnes, while in Saudi Arabia, year to date production was down 6% to 3.5 million tonnes.
The five major Asian countries - China, India, Japan, South Korea and Taiwan - showed very mixed results in steel production. Chinese production jumped by 28.7% in September, although the year to date total was only up by 7.5% to 420 million tonnes, 48.5% of global steel production. Japanese production, on the other hand, decreased by 18% in the month, bringing the cumulative total down 34% to 60.9 million tonnes. In South Korea production was down just 2.4% in September, and by 14.9% in the nine months to 35.1 million tonnes. India's steel production was flat in September, while the year to date total was up 1.6% to 41.7 million tonnes. Taiwanese production, however, decreased by 25% in September, and by 33% in the year to date to 10.6 million tonnes.
Chinese exports of steel in September reached their highest total in 2009 at 2.4 million tonnes, although this was only just over one third of the total in September 2008. There was a marked increase in the exports of hot rolled plate, reaching 407 thousand tonnes, the highest total since December. Just over half this monthly total went to South Korea with a further 18% going to Vietnam. China's next largest export in September was hot rolled wide strip, at 340 thousand tonnes, although this was down slightly on the August total. Both seamless and welded tubes showed a significant increase in exports, up 20% and 25% respectively on the August total. These four products accounted for just over half of Chinese steel exports in September.
Japanese steel exports also increased to their highest level since March 2008, reaching 3.5 million tonnes in September. The largest exports in September were hot rolled wide strip (970kt), semis (690kt), CR (391kt), zinc coated steel (382kt) and hot rolled plate (359kt). These five products accounted for 80% of Japan's exports in September. Other Asian countries accounted for 86% of total exports in September with South Korea alone accounting for 29% of the total, and China a further 18%.
Credit:steelonthenet
Second-half steel prices expected to drop
Local steel prices are expected to slide in the second half of the year, driven by the slowing of investment projects as inflation stalls momentum, according to Vikrom Vajragupta, director of the Iron and Steel Institute of Thailand (ISIT).
"The price of steel products will drop in line with slower world economic growth. That will be the main cause depressing the investment climate, resulting in less demand for steel and then lower steel prices," Mr Vikrom said.
In Thailand, he said demand for steel has dropped significantly because of the momentum of political woes, which have adversely affected the overall economy.
Mr Vikrom, who has recently returned from a regional steel conference in Malaysia, expressed concerns that the development of upstream steel production industry formation in Thailand is far behind compared to others in the region.
He urged the National, Economic and Social Development Board (NESDB) to conclude its upstream steel production study as soon as possible.
"The study should have been done and gone through cabinet consideration a while ago. The delay has caused a lot of frustration for Japanese steel manufacturers who want to produce and supply standard steel for their automobile customers in Thailand," Mr. Vikrom said.
According to the Board of Investment (BoI), four leading steelmakers - Arcelor-Mittal, Japan's Nippon Steel, JFE Steel and China's Baosteel - all have expressed interest in investing in upstream blast furnaces in Thailand.
Mr Vikrom said the delays in finalising industry policies may result in global producers shifting their investment projects to other countries in the region.
"The price of steel products will drop in line with slower world economic growth. That will be the main cause depressing the investment climate, resulting in less demand for steel and then lower steel prices," Mr Vikrom said.
In Thailand, he said demand for steel has dropped significantly because of the momentum of political woes, which have adversely affected the overall economy.
Mr Vikrom, who has recently returned from a regional steel conference in Malaysia, expressed concerns that the development of upstream steel production industry formation in Thailand is far behind compared to others in the region.
He urged the National, Economic and Social Development Board (NESDB) to conclude its upstream steel production study as soon as possible.
"The study should have been done and gone through cabinet consideration a while ago. The delay has caused a lot of frustration for Japanese steel manufacturers who want to produce and supply standard steel for their automobile customers in Thailand," Mr. Vikrom said.
According to the Board of Investment (BoI), four leading steelmakers - Arcelor-Mittal, Japan's Nippon Steel, JFE Steel and China's Baosteel - all have expressed interest in investing in upstream blast furnaces in Thailand.
Mr Vikrom said the delays in finalising industry policies may result in global producers shifting their investment projects to other countries in the region.
Korean steel heads for new challenges
Korea’s steel industry has not escaped the impact of the global economic downturn, but the scale and duration of its crisis is something many hard hit steelmakers in Europe and the Americas would be happy to live with. However, although domestic demand is rising, steelmakers are not in the clear year yet. There are new challenges to face in 2010.
How the Steel Market Works
1-4 March 2010, London
100% of people who attended our previous courses would recommend it to their colleagues
Early Bird! Expires 5 January 2010
Register now for full 4-day course or individual days!
In the current market situation, planning ahead has become a real challenge. More than ever, the in depth knowledge of steel and the market is crucial. When will the market recover? Where will consumption head to in the coming years? How do we protect ourselves from the financial risks associated with price volatility? These questions are in everyones' minds. SBB’s proven “How the Steel Market Works” executive course gives you the tools to answer them.
Register Now: How the Steel Market Works
Monday 1st March - Thursday 4th March 2010
Course sessions will include the following and more:
Day 1 -- The Vocabulary of Steelmaking. How steel is made and used -- Understand the steelmaking process, from raw materials to finished products; you will master the vocabulary of steel.
Day 2 -- The evolution of the steel sector. The economics of steelmaking. Key steel end uses. The carbon agenda and climate change. Design the steel company of the future -- Learn how the industry has evolved and consolidated. Understand the relative costs and economics of steelmaking worldwide. Learn how and where steel is used and the growing importance of the carbon agenda and the industry’s responses and agenda for change. The day concludes with a workshop in groups to bring together the material from the first two days of the course designing the steel company of the future.
Day 3 -- International steel trade and trade flows. Strategic overview of steel prices. Price risk management. Forecasting -- Understand how steel is traded internationally and how it is priced. Learn the latest techniques to manage price risk. Understand different approaches to forecasting.
Day 4 -- Steel Futures & Hedging -- Hedging through customised over-the-counter deals and through regulated metal exchanges is explained in principle and then simulated in practice.
100% of people who attended our previous courses would recommend it to their colleagues
Early Bird! Expires 5 January 2010
Register now for full 4-day course or individual days!
In the current market situation, planning ahead has become a real challenge. More than ever, the in depth knowledge of steel and the market is crucial. When will the market recover? Where will consumption head to in the coming years? How do we protect ourselves from the financial risks associated with price volatility? These questions are in everyones' minds. SBB’s proven “How the Steel Market Works” executive course gives you the tools to answer them.
Register Now: How the Steel Market Works
Monday 1st March - Thursday 4th March 2010
Course sessions will include the following and more:
Day 1 -- The Vocabulary of Steelmaking. How steel is made and used -- Understand the steelmaking process, from raw materials to finished products; you will master the vocabulary of steel.
Day 2 -- The evolution of the steel sector. The economics of steelmaking. Key steel end uses. The carbon agenda and climate change. Design the steel company of the future -- Learn how the industry has evolved and consolidated. Understand the relative costs and economics of steelmaking worldwide. Learn how and where steel is used and the growing importance of the carbon agenda and the industry’s responses and agenda for change. The day concludes with a workshop in groups to bring together the material from the first two days of the course designing the steel company of the future.
Day 3 -- International steel trade and trade flows. Strategic overview of steel prices. Price risk management. Forecasting -- Understand how steel is traded internationally and how it is priced. Learn the latest techniques to manage price risk. Understand different approaches to forecasting.
Day 4 -- Steel Futures & Hedging -- Hedging through customised over-the-counter deals and through regulated metal exchanges is explained in principle and then simulated in practice.
ArcelorMittal sees continued strong steel demand in China
ArcelorMittal expects steel production in China to increase by as much as 10% in 2009 compared to 2008 because the domestic market and demand are strong, chief executive Lakshmi Mittal said last week.
This contrasts with the company’s expectations for the rest of the world. In Europe, steel consumption may decline by more than 20% this year, in the US it could fall by about 20%, and overall outside China it will decline by 15-20%, Mittal forecast.
This contrasts with the company’s expectations for the rest of the world. In Europe, steel consumption may decline by more than 20% this year, in the US it could fall by about 20%, and overall outside China it will decline by 15-20%, Mittal forecast.
ArcelorMittal report loss in second quarter
ArcelorMittal, the world's largest steelmaker announced 792 million USD losses in the second quarter. Lakshmi Mittal, chief executive of ArcelorMittal said that the company will have improved result in third quarter, especially from BRICs market. There were sustained signs of recovery in India, Russia, Eastern Europe and Brazil amid new construction and China's economic-stimulus measures. However, situation of U.S. and Western Europe may not improve early than the end of last year. In North America, at present, just three out of the company's nine blast furnaces are operating or planning to operate and in Europe, 15 of the company's 25 blast furnaces are expected to be online during the third quarter.
Two re-rollers are officially duty-free importers in Thailand.
Two re-rollers are officially duty-free importers in Thailand.
Thai ministry of finance has admitted Siam United Steel and Thai Cold Rolled Steel are duty-free importers, to end dispute between Thai government and Japan government. Thai government repay over $10 m now in duty from this two re-rollers.
Under the free trade agreement both countries signed in November 2007, Thai consumers of Japanese steel that were recognized to import flat rolled items from Japan duty-free. But Thai refused to recognize two Japanese re-rollers Nippon steel ‘s Siam United Steel and JFE Steel ‘s Thai Cold Rolled Steel Sheet , were importers duty-free. Then Thai government has forced both to pay 5% duty until recently.
Thai ministry of finance has admitted Siam United Steel and Thai Cold Rolled Steel are duty-free importers, to end dispute between Thai government and Japan government. Thai government repay over $10 m now in duty from this two re-rollers.
Under the free trade agreement both countries signed in November 2007, Thai consumers of Japanese steel that were recognized to import flat rolled items from Japan duty-free. But Thai refused to recognize two Japanese re-rollers Nippon steel ‘s Siam United Steel and JFE Steel ‘s Thai Cold Rolled Steel Sheet , were importers duty-free. Then Thai government has forced both to pay 5% duty until recently.
Metallurgical Coal Exports From Central Kalimantan Expanding
There has surfaced a possibility on significant increase in metallurgical coal exports from Central Kalimantan,
Indonesia, from now. MGM coal mine operated by PT Marunda Graha Mineral enters into full scale production and at the
same time development projects of new concessions in the same province Suprabari and Haju concessions are now on
progress.
As well known, in Central Kalimantan rich reserves of high quality metallurgical coal exist, but in part due to delay
in upgrading of infrastructure, coal developments are left almost untouched. In effect, at this moment in Central Kalimantan,
PT MGM is the only company operating metallurgical coal mine.
At this moment PT MGM operates opencut coal mine (MGM mine) at Kabupaten Barito Utara in Central
Kalimantan. The types produced coal are high quality semi-soft coking coal and thermal coal, which are exported to
Japan and other destinations through Itochu Corp. owning 23.5 percent shares of PT MGM.
Salable coal production at MGM coal mine remains 1,600,000 MT per year or so, which will be lifted to 2,000,000
MT per year by full scale production sooner or later. The production ratios are about 80 percent of semi-soft coking coal
and about 20 percent of thermal coal, which means production by 1,600,000 MT per year maximum of semi-soft coking
coal is possible.
PT MGM uses Barito River for its coal transport and semi-soft coking coal produced at MGM mine is conveyed
to off the shore of Banjarmasin down Barito River to be further transported to the large coal loading base of PT Indonesia
Bulk Terminal located at Lauto Island. The distance by barge transport extends over 780 km in total (620 km down Barito
Rover and 160 km on ocean). For reference thermal coal is loaded to ocean carrier off the shore of Banjarmasin.
Since the water depth of Barito River steeply fluctuates between rainy and dry seasons, however, there had been
many occasions of blocking the travel of barge due to too shallow a depth (or too deep). In particular in the dry season
there were several spots where the water depth became extremely shallow and sometimes coal shipments of PT MGM
were interrupted for quite a long time.
With the objective of increase in coal shipments during the dry season, however, at the end of October 2006, PT
MGM installed Intermediate Stock Pile (ISP) with coal stock capacity of 200,000 MT at the middle point of Barito River.
As a result currently coal shipments can be smoothly carried out even during the dry season by way of transporting coal
to ISP beforehand during the rainy season.
On the other hand, Suprabari concession is undeveloped opencut concession located 100 km south of MGM mine
where Itochu Corp. owns 23.5 percent interest just like the case of MGM mine.
At Suprabari concession coal production is to be launched in July 2010 with expected salable coal production of
2,000,000 MT to 2,500,000 MT per year. The types of produced coal are high quality semi-soft coking coal and thermal
coal. For transportation of coal produced at the concession, ISP of PT MGM is utilized.
As a result, upon entrance into full-fledged production at Suprabari concession, exports of 4,000,000 MT to
4,500,000 MT of coal from the concession and MGM coal mine become possible.
On the other hand, Haju concession is undeveloped small scale opencut concession located at the border of East
Kalimantan and Central Kalimantan, and is to be developed as the phase 1 of large scale metallurgical coal development
project Maruwai Project striding over the both Central and East Kalimantan.
BHP Billiton of Australia owns 100 percent interest in Maruwai Project including Haju concession and seems to
be intending to start in earnest development of the concession very shortly. Coal production at the initial stage remains
1,000,000 MT per year which will be raised to 2,000,000 MT per year by expansion works in future. The types of
produced coal are semi-soft coking coal and thermal coal.
Coal produced at Haju concession as well is transported by barge down Barito River to Banjarmasin in South
Kalimantan for export to Asian region and other markets. In order to secure stable coal shipments, BHP Billiton plans to
install its own relaying terminal at Barito River.
At Maruwai, BHP Billiton seem to be intending to first develop Haju concession with lower development costs
and thereafter engage itself in development of large scale concession with higher development costs. After development
of Haju concession, that of Lampunut concession is under planning. At the concession metallurgical coal production by
3,000,000 MT to 5,000,000 MT per year is envisaged.
Indonesia, from now. MGM coal mine operated by PT Marunda Graha Mineral enters into full scale production and at the
same time development projects of new concessions in the same province Suprabari and Haju concessions are now on
progress.
As well known, in Central Kalimantan rich reserves of high quality metallurgical coal exist, but in part due to delay
in upgrading of infrastructure, coal developments are left almost untouched. In effect, at this moment in Central Kalimantan,
PT MGM is the only company operating metallurgical coal mine.
At this moment PT MGM operates opencut coal mine (MGM mine) at Kabupaten Barito Utara in Central
Kalimantan. The types produced coal are high quality semi-soft coking coal and thermal coal, which are exported to
Japan and other destinations through Itochu Corp. owning 23.5 percent shares of PT MGM.
Salable coal production at MGM coal mine remains 1,600,000 MT per year or so, which will be lifted to 2,000,000
MT per year by full scale production sooner or later. The production ratios are about 80 percent of semi-soft coking coal
and about 20 percent of thermal coal, which means production by 1,600,000 MT per year maximum of semi-soft coking
coal is possible.
PT MGM uses Barito River for its coal transport and semi-soft coking coal produced at MGM mine is conveyed
to off the shore of Banjarmasin down Barito River to be further transported to the large coal loading base of PT Indonesia
Bulk Terminal located at Lauto Island. The distance by barge transport extends over 780 km in total (620 km down Barito
Rover and 160 km on ocean). For reference thermal coal is loaded to ocean carrier off the shore of Banjarmasin.
Since the water depth of Barito River steeply fluctuates between rainy and dry seasons, however, there had been
many occasions of blocking the travel of barge due to too shallow a depth (or too deep). In particular in the dry season
there were several spots where the water depth became extremely shallow and sometimes coal shipments of PT MGM
were interrupted for quite a long time.
With the objective of increase in coal shipments during the dry season, however, at the end of October 2006, PT
MGM installed Intermediate Stock Pile (ISP) with coal stock capacity of 200,000 MT at the middle point of Barito River.
As a result currently coal shipments can be smoothly carried out even during the dry season by way of transporting coal
to ISP beforehand during the rainy season.
On the other hand, Suprabari concession is undeveloped opencut concession located 100 km south of MGM mine
where Itochu Corp. owns 23.5 percent interest just like the case of MGM mine.
At Suprabari concession coal production is to be launched in July 2010 with expected salable coal production of
2,000,000 MT to 2,500,000 MT per year. The types of produced coal are high quality semi-soft coking coal and thermal
coal. For transportation of coal produced at the concession, ISP of PT MGM is utilized.
As a result, upon entrance into full-fledged production at Suprabari concession, exports of 4,000,000 MT to
4,500,000 MT of coal from the concession and MGM coal mine become possible.
On the other hand, Haju concession is undeveloped small scale opencut concession located at the border of East
Kalimantan and Central Kalimantan, and is to be developed as the phase 1 of large scale metallurgical coal development
project Maruwai Project striding over the both Central and East Kalimantan.
BHP Billiton of Australia owns 100 percent interest in Maruwai Project including Haju concession and seems to
be intending to start in earnest development of the concession very shortly. Coal production at the initial stage remains
1,000,000 MT per year which will be raised to 2,000,000 MT per year by expansion works in future. The types of
produced coal are semi-soft coking coal and thermal coal.
Coal produced at Haju concession as well is transported by barge down Barito River to Banjarmasin in South
Kalimantan for export to Asian region and other markets. In order to secure stable coal shipments, BHP Billiton plans to
install its own relaying terminal at Barito River.
At Maruwai, BHP Billiton seem to be intending to first develop Haju concession with lower development costs
and thereafter engage itself in development of large scale concession with higher development costs. After development
of Haju concession, that of Lampunut concession is under planning. At the concession metallurgical coal production by
3,000,000 MT to 5,000,000 MT per year is envisaged.
'Significant uncertainty' over G Steel
'Significant uncertainty' over G Steel's liquidity: Moody's
Moody’s Investors Service has given a bleak outlook for Thailand’s second-largest hot rolled coil producer, G Steel Public Co, as it downgrades the company’s credit ratings due to “significant uncertainty over G Steel’s current liquidity position.”
Based on end-December 2008 financial statements, G Steel’s external auditors have raised several concerns, including the quality and quantity of allowances provided on the company’s outstanding trade receivables, says Moody’s in a statement seen by Steel Business Briefing.
G Steel had trade receivables of THB 3,957m ($110m) outstanding as at 31 December. Of this, THB 3,582m pertained to three unrelated parties, had incomplete documentation for sales authorisation, lacked evidence of delivery of goods, and did not have signatures acknowledging receipt of goods. The uncertainty of collection of these trade receivables will exacerbate the company’s already poor liquidity and its access to bank funding will be constrained, says Kathleen Lee, a vp with Moody’s.
Moody’s also raised concerns over future losses at G Steel in view of committed higher prices for its consigned or purchases of raw materials versus current market prices. It notes G Steel’s operating environment remains challenging over the medium term and its weak liquidity position. G Steel's near-term financing risk is evident from its scheduled semi-annual loan maturities in 2009, which do not have the support of available committed facilities.
Moody’s downgraded the corporate family rating and senior unsecured ratings of G Steel to Caa3 from Caa1. G Steel officials were unavailable for comments.
News from SBB
Moody’s Investors Service has given a bleak outlook for Thailand’s second-largest hot rolled coil producer, G Steel Public Co, as it downgrades the company’s credit ratings due to “significant uncertainty over G Steel’s current liquidity position.”
Based on end-December 2008 financial statements, G Steel’s external auditors have raised several concerns, including the quality and quantity of allowances provided on the company’s outstanding trade receivables, says Moody’s in a statement seen by Steel Business Briefing.
G Steel had trade receivables of THB 3,957m ($110m) outstanding as at 31 December. Of this, THB 3,582m pertained to three unrelated parties, had incomplete documentation for sales authorisation, lacked evidence of delivery of goods, and did not have signatures acknowledging receipt of goods. The uncertainty of collection of these trade receivables will exacerbate the company’s already poor liquidity and its access to bank funding will be constrained, says Kathleen Lee, a vp with Moody’s.
Moody’s also raised concerns over future losses at G Steel in view of committed higher prices for its consigned or purchases of raw materials versus current market prices. It notes G Steel’s operating environment remains challenging over the medium term and its weak liquidity position. G Steel's near-term financing risk is evident from its scheduled semi-annual loan maturities in 2009, which do not have the support of available committed facilities.
Moody’s downgraded the corporate family rating and senior unsecured ratings of G Steel to Caa3 from Caa1. G Steel officials were unavailable for comments.
News from SBB
News from Key to Metal March 2009
1. New Developments Completed in March
Brazilian materials have again been upgraded with specifications for various steel tubes, sheets and other flat products, carbon steel bars and forgings, and feroalloys.
US AMS aerospace materials have been updated with 50 new specifications for corrosion-resistant alloys.
Heat treatment diagrams for over 1500 European materials have been added.
New articles have been added for you in the KEY to METALS • Steel Knowledge Base:
- Rail Steel, and
- Marine Stainless Steel Applications.
2. Developments Planned for Aprile
South African (SANS) specifications will be added to the Database for the first time, starting with various steel castings and cast irons, tubes and pipes, structural steel, fasteners, and more.
Brazilian materials will be upgraded again with additional ferroalloys, low alloy steels, microalloyed carbon steels, coated steels, cold-rolled products and more.
AMS aerospace will be updated with another 60 new specifications for aircraft quality products, low alloy steels, castings, and corrosion-resistant alloys.
Cross-reference tables will be updated according to the guidelines from the newest UNS 2008 Edition.
And, as usual, two new FREE articles will be added for you to the KEY to METALS • Steel Knowledge Base.
3. Marine Stainless Steel Applications
Marine applications are very demanding. Stainless steel is the ideal material for marine applications due to the fact that it resists rust better than other materials such as brass, bronze, or galvanized steel. By now it is common knowledge that stainless steels ranging from AISI 316 up to 6Mo and superduplex do not always resist seawater.
Crevice corrosion and pitting may develop sooner or later. For example, a 25Cr07Ni super duplex tubular heat exchanger in a marine vessel showed crevice corrosion within 6 months of service. In natural seawater a biofilm will develop on the metal surface and it will always promote the corrosivity of the water.
Microbiological induced corrosion often occurs in seawater, and galvanic corrosion is also a major problem at sea.
Materials selection in marine environment is quickly gaining interest because of the worldwide trend to concentrate major industrial facilities around sea ports in order to save transport cost and increase cooling capacity.
To read more on this topic, visit
steel.keytometals.com/default.aspx?ID=Articles
and select article "Marine Stainless Steel Applications".
Brazilian materials have again been upgraded with specifications for various steel tubes, sheets and other flat products, carbon steel bars and forgings, and feroalloys.
US AMS aerospace materials have been updated with 50 new specifications for corrosion-resistant alloys.
Heat treatment diagrams for over 1500 European materials have been added.
New articles have been added for you in the KEY to METALS • Steel Knowledge Base:
- Rail Steel, and
- Marine Stainless Steel Applications.
2. Developments Planned for Aprile
South African (SANS) specifications will be added to the Database for the first time, starting with various steel castings and cast irons, tubes and pipes, structural steel, fasteners, and more.
Brazilian materials will be upgraded again with additional ferroalloys, low alloy steels, microalloyed carbon steels, coated steels, cold-rolled products and more.
AMS aerospace will be updated with another 60 new specifications for aircraft quality products, low alloy steels, castings, and corrosion-resistant alloys.
Cross-reference tables will be updated according to the guidelines from the newest UNS 2008 Edition.
And, as usual, two new FREE articles will be added for you to the KEY to METALS • Steel Knowledge Base.
3. Marine Stainless Steel Applications
Marine applications are very demanding. Stainless steel is the ideal material for marine applications due to the fact that it resists rust better than other materials such as brass, bronze, or galvanized steel. By now it is common knowledge that stainless steels ranging from AISI 316 up to 6Mo and superduplex do not always resist seawater.
Crevice corrosion and pitting may develop sooner or later. For example, a 25Cr07Ni super duplex tubular heat exchanger in a marine vessel showed crevice corrosion within 6 months of service. In natural seawater a biofilm will develop on the metal surface and it will always promote the corrosivity of the water.
Microbiological induced corrosion often occurs in seawater, and galvanic corrosion is also a major problem at sea.
Materials selection in marine environment is quickly gaining interest because of the worldwide trend to concentrate major industrial facilities around sea ports in order to save transport cost and increase cooling capacity.
To read more on this topic, visit
steel.keytometals.com/default.aspx?ID=Articles
and select article "Marine Stainless Steel Applications".
Metallurgy Of Steel (Course) For Thai People
Mar - May 2009
For more information please browse http://www.isit.or.th
Tata'S New Eco Car Project
Tata motors has again add up to the top notch headlines, when the Thailand Board of Investment gave green signal to the company's proposal to make an eco car. The official of the Thailand Board of Investment said that the company is schedule to get its final nod in the proposed internal approval meeting that is going to take place April 2, 2008. Thailand Board of Investment is the Thai equivalent of the India's Foreign Investment Promotion Board.
Tata Motors Ltd. are the India's top vehicle maker, that have taken initiative along with the Thai Government to produce the cars that are fuel efficient and more economical. Tata Motors will be the world's third global car maker to get approval of such a project after the Suzuki Motor Cooperation and SIAM Nissan Automobile, whose projects will going to start the commercial production in the year 2010.
Thailand Board of Investment issued a notification in June 2007 inviting proposals from the global car makers to manufacture the eco cars. Although it has set the minimum pollution standard of Euro IV, with emissions no more than 120 grams of carbon dioxide per kilometer. Also the car shold satisfy the passenger safety standards.
The entire world is waiting with the baited breadth for the launch of the eco cars. Thai government is looking forward to make country a prominent car producer that meet state of the art emissions and safety norms with stringent fuel economy of 20 km a liter. On the other hand the Thai government has offered tax breaks, duty exemptions, and the other relative incentives if the manufacturer invest a minimum of 5 billion bath and produce 100, 000 units by the fifth year of operations.
In the time when the energy requirements are on the rise, the success of the eco cars are in no doubt, that will meet the international standard and specification. Already the Tata have their presence in the commercial vehicle space of Thailand. But it is not clear that Tata will use Hybrid or any other alternate technology in the Thai eco car project. The eco car project is expected to receive corportate income tax exemption for the period of eight years and the permission to import machinery duty-free.
By. Manjari Singh
http://www.articlesbase.com/cars-articles/tatas-new-eco-car-project-804101.html
Tata Motors Ltd. are the India's top vehicle maker, that have taken initiative along with the Thai Government to produce the cars that are fuel efficient and more economical. Tata Motors will be the world's third global car maker to get approval of such a project after the Suzuki Motor Cooperation and SIAM Nissan Automobile, whose projects will going to start the commercial production in the year 2010.
Thailand Board of Investment issued a notification in June 2007 inviting proposals from the global car makers to manufacture the eco cars. Although it has set the minimum pollution standard of Euro IV, with emissions no more than 120 grams of carbon dioxide per kilometer. Also the car shold satisfy the passenger safety standards.
The entire world is waiting with the baited breadth for the launch of the eco cars. Thai government is looking forward to make country a prominent car producer that meet state of the art emissions and safety norms with stringent fuel economy of 20 km a liter. On the other hand the Thai government has offered tax breaks, duty exemptions, and the other relative incentives if the manufacturer invest a minimum of 5 billion bath and produce 100, 000 units by the fifth year of operations.
In the time when the energy requirements are on the rise, the success of the eco cars are in no doubt, that will meet the international standard and specification. Already the Tata have their presence in the commercial vehicle space of Thailand. But it is not clear that Tata will use Hybrid or any other alternate technology in the Thai eco car project. The eco car project is expected to receive corportate income tax exemption for the period of eight years and the permission to import machinery duty-free.
By. Manjari Singh
http://www.articlesbase.com/cars-articles/tatas-new-eco-car-project-804101.html
Reaction Between ICE and MELTED METAL
Electric arc furnace explosion during feeding, reaction between ICE (in new bath) and MELTED METAL
E.A.F. Melting scrap steel in New Zealand.
E.A.F. Melting scrap steel in New Zealand. The arc is about 3000°Celcius and scrap steel is melted in three charges to get around 25 tonnes of steel to be further processed in the ladle furnace.
The rods are from carbon and the arc current varies between 42,000 and 50,000 Ampères at around 300 Volts AC.
The rods are from carbon and the arc current varies between 42,000 and 50,000 Ampères at around 300 Volts AC.
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