World crude steel output hit new record in May, but down in daily basis

World crude steel output hit new record in May, but down in daily basis


World crude steel production record a new highest monthly production of 124m tonnes in May, exceeded the previous record of 121m tonnes in May 2008. Production of all regions is significant higher than May 2009. Especially in North America and EU posed, their production posed more that 50% increase from the last year. Furthermore, World steel output in the first five month of this year has already reached 586m tonnes, up by 30% from the same period of the last year. However, a daily production rate of 4.1m tonnes/day in May was slightly lower than which in April.



Crude steel output

(Unit: thousand tonnes)

May 2010 May 2009 % change

EU-27 16,317 10,790 +51.2

Other Europe 2,842 2,355 +20.7

CIS 9,565 7,643 +25.1

N. America 9,841 5,890 +67.1

S. America 3,698 2,794 +32.4

Africa 1,446 1,187 +21.8

Middle East 1,650 1,435 +14.9

Asia 78,319 63,703 +22.7

Oceania 687 380 +80.7

Total 124,184 96,177 +29.1



Source: World Steel Association

POSCO move forward to auto sheet market in Japan

POSCO move forward to auto sheet market in Japan

POSCO held the technical fair at Honda Motor’s head office in Tokyo last Tuesday. The Korean steel company displayed their products, distribute technical information and answer questions for Honda employees and Honda parts makers. The fair was a part of POSCO’s campaign to promote its auto-related products to Japanese carmakers in Japan. POSCO began to promote its products to Japanese carmaker since 2003 in its Early Vendor Involvement scheme. And few months ago, the Korean steelmaker held similar fairs at Nissan Motor and Suzuki Motor. Furthermore, POSCO also held the open fair at its 120,000 tonnes/year new coil centre in Yokkaichi and invited the carmakers and part markers in Nagoya, including Honda Motor.

Misif lower steel demand forecast in Malaysia

Misif lower steel demand forecast in Malaysia

The Malaysian Iron & Steel Industry Federation (Misif) has revised its growth forecast of Malaysia’s apparent steel consumption to 3-5%, down from the earlier growth forecast of 10-12%. Federation president Chow Chong Long explained Misif’s earlier forecast was based on a strong demand in the 1st and 2nd quarter. However, the new forecast reflexes the result of prices falling and quiet steel market in the first half of the year. Furthermore, Chow also expected a less than 5% growth in steel demand in the latter half of the year. Malaysia’s steel demand usually slowdown in the latter half of the year due to rainy season in the Malaysia, including the Islamic fasting month and the year-end festivities.

India economic growth will achieve double digit in 2012

India economic growth will achieve double digit in 2012
The Time of India
Indian Finance Minister proclaims that India could achieve double digit growth rate in the remaining two years of the 11th Five Year Plan if the present trend of growth continued. The Indian economy grew by 6.7% in 2008-09 and by 7.4% in 2009-10. In this fiscal year, the latest economic survey has projected 8.5% growth rate. The minister set target is to breach the barrier of double-digit growth and also hope that the growth means more jobs, employment, wealth and access.

Posco thick over new prices for July-September

Posco thick over new prices for July-September


Posco is currently considering its new quarterly prices for July-September and expected to announce its decision by 20 June. The company is under pressure because their production costs, especially raw material prices, are expected to increase from the April-June quarter. On the other hand, demand from both of domestic and export markets has been weakening. Consequently, Posco will face more difficulty to pass the additional cost to its customers.

Furthermore, the change in the iron ore pricing system has led Posco to impose its first quarterly prices in the past 40 years. And the company has to be more cautious with its decision because that will impact downstream industries. According the Posco’s assumption, July-September prices will increase by 25% q-o-y for Vale’s iron ore and by 23% for BHP Billiton’s and Rio Tinto’s iron ore.

Stainless steel prices continue downward in China

Stainless steel prices continue downward in China
Stainless steel prices in Southern China decreased further by $59-102/tone for all grade during the last week because of weakening stainless steel demand and softening nickel prices during the early of June. On 11 June, prices of grade 304 hot rolled coil down to $2,752-2,781/tonne, while prices of grade 304/2B cold rolled coil dipped to $2,825-2,869/tonne. Furthermore, Chinese traders believed that stainless steel prices may dropped further by $59-117/t, if nickel prices do not rebound by the end of this week.