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Inner Mongolia raises the electricity price for alloy production(2008/8/20)

According to sources, the government of Inner Mongolia Autonomous Region issued a notice, saying that the government decided to raise the electricity price for ferroalloy production by 0.07 Yuan per KWH since September, which will add 600 to 700 Yuan per ton of production cost for the ferro-silicon producers. According to the Notice on Several Questions about the Electricity Price in Gansu Province and Guangxi Autonomous Region by National Reform and Development Commission, the price in two province and region will be partly raised.
According the participants, the rise in electricity price will no doubt add pressure to the producers. 0.07 Yuan per KWH means 600 to 700 Yuan per ton increase in production cost for the ferro-silicon producers, therefore they have to raise the products sale prices in turn. Offer prices of ferro-silicon have moved up in Wuhai, with silicon 75% product ex-work offer up to 8,400 to 8,500 Yuan per ton, silicon 72% offer to 7,800 to 8,000 Yuan per ton.
Yesterday, offer of silicon 75% ferro-silicon from E’erduosi came to 8,400 to 8,500 Yuan per ton, and that of silicon 72% ferro-silicon came to 8,100 to 8,200 Yuan per ton, both of ex-work prices. With the offer in Shizuishan Ningxia were 7,800 to 7,900 Yuan per ton and 7,600 to 7,700 Yuan per ton respectively.
In Gansu, the basic charge for electricity for large industry consumers will maintain at the same level, but the electricity price will rise and the electricity price for general industries will be adjusted. Now the list price of electricity for large industry consumers during the low water period is: 1 to 10 KV, 0.5542 Yuan per KWH; 35 to 110 KV, 0.5312 Yuan per KWH; 110 KV, 0.5092 Yuan per KWH; 220 KV and above, 0.4932 Yuan per KWH.

Zhanjiang steel project fed by local metal resources(2008/8/14)

Rich resources such as limestone for flux, dolomite ore and serpentine ore around Zhanjiang area have been confirmed by the Guangdong Hydrology Bureau after 2 years of exploration in neighboring Zhanjiang area including southwestern Guangdong as well as central and southern Guangxi Zhuang Autonomous Region since August 2006.
These resources could cater to the 140 billion yuan Zhanjiang steel base project, promoted by Baosteel and Shaoguan Steel in May 2006 and designated to produce 20 million t/y of steel, including 10 million tons of high-grade steel for auto and electric consumer goods, according to related authorities in Zhanjiang, Guangdong province.

China steel exports up 20 percent in July(2008/8/13)

 (Xinhua) -- China's steel exports swelled to 7.21 million tonnes in July, up 21.38 percent year on year. The amount was 1.99 million tonnes more than June, China Securities News reported on Tuesday, quoting China Customs statistics.
Experts attributed the surge to the deferred export of June's alloy steel.
Tianjin Port started to check alloy steel exports in June. "At least 700,000 to 800,000 tonnes of alloy steel were kept within the harbor till July because of the half-month checking time," said umetal.com analyst Zhang Ping.
"The 5 percent tax rebate on alloy steel was also part of the reason for the export surge."
Spurred by rising prices on the international market, the country's steel exports have showed signs of rebounding since March. The upward trend urged Chinese Customs last month to suggest reinforcing supervision over steel exports to prevent it from getting out of control.
Customs statistics showed national steel exports stood at 34.15million tonnes in the first seven months this year, down 14 percent over the same period in 2007.
July's net export, however, reached 5.77 million tonnes, representing a 45.7 percent month-on-month increase.

Guangxi will construct a large iron and steel base by 2012(2008/8/7)

According to the 100 Billion Yuan Industry and Key Industries Development Plan of Guangxi Zhuang Autonomous Region, till 2012, the production value from metallurgy industry in Guangxi will reach 170.0 billion Yuan, and the value added will reach 49.0 billion Yuan, while the production of iron and steel products will increase to 20 million tons, and that for pig iron to 17 million tons. Till then, the steel production of Guangxi will take a ratio of 3.7% among the whole in China, up from 1.7% in 2007, and Guangxi will enter the top ten producers of steel production in China. Guangxi will be a large iron and steel base in China.

Ningxia to control production on ferroalloy and calcium carbide(2008/8/6)

Ningxia is planning to control production in the two heavily energy consuming sectors of ferroalloy and calcium carbide from August 1, in a bid to ensure energy saving and emissions reduction.
The government has decided to limit ferroalloy production to 200,000 tons and calcium carbide output to 100,000 this month. During the first half, the autonomous region produced 545,400 tons of ferroalloy with an estimated 1.1 million tons for the whole year and 1.082 million tons of calcium carbide with an annual output of 2.1 million tons. In 2008, local ferroalloy output is to limit to 900,000 tons and calcium carbide output to within 2 million tons.

Coal shortage threatens power supply(2008/8/4)

 China may face electricity blackouts nationwide this year due to inadequate power coal supply, the country's power regulator said in a report released on Friday.
According to the State Electricity Regulatory Commission (SERC), increasing coal supply pressure has forced domestic power plants to stop operation occasionally.
The coal reserve in the country's big power plants was 43.81 million tonnes, merely enough to support 11 days of normal operations, SERC statistics showed.
Power coal prices kept rising amid increasing demand from the country's coal-fired power plants, which supply 78 percent of the country's electricity. Prices at the Qinghuangdao coal market topped 1,065 yuan (about 155 U.S. dollars) by the end of July, up 115 percent from the same time last year.
"A drop in coal quality has also affected the normal operation of power facilities," the report said.
Another threat to electricity supply comes from the power grid itself. The design capacity of some power supply facilities in the country fell short of the actual demand, according to the SERC report.
In addition, some power distribution grids were in need of equipment update, putting the national power grid at the risk of large-scale electricity cut off.
Yu Yanshan, the SERC general office deputy head, said earlier that China was expecting a maximum daily power shortage of 10 million kw this summer.

Top ten iron and steel companies take 40% of the crude steel production (2008/8/1)

 On the enlarged meeting of the fourth standing committee of the third section of China Iron and Steel Association (CISA), Shan Shanghua, general secretary of CISA, said that, the top ten iron and steel companies had a crude steel production of 109.1933 million tons during the first half year, taking a share of 41.37% of the whole, and the industry centralization ratio went up by 5.28 percent. The integration and reform of iron and steel companies in Shandong Province contributed a lot to the increase of industry centralization ratio in iron and steel industry.
During the first half, Shandong Iron and Steel Group, Guangdong Iron and Steel Group and Hebei Iron and Steel were established successively, boosting the integration and reform of companies in iron and steel industry, and helping to lift the industry concentration ratio. If not take the three groups mentioned above into consideration, the top ten crude steel producers had a production totaled 95.2874 million tons during the six months of 2008, taking a share of 36.20%.

Lianyungang gained approval for 250,000 tons ore wharf project(2008/7/25)

 On 14th July, National Development and Reform Commission gave approval to Lianyungang Port for the 250,000 ore wharf construction project. The project will construct a 250,000 tons discharging berth for iron ores, which can berth 300,000 tons vessels, and the design capacity is 12.00 million tons per year at first, which is to be expanded to 15.00 million tons per year in the future. The project involves an investment of 1,593 million Yuan. When completed, the project will ease the tight ores discharging capacity in Lianyungang Port, and boost the economy development in inner land.

Gansu conducts energy consumption audit on key firms(2008/7/23)

 During the first five months, energy consumption of added value per 10,000 yuan among 209 key industrial enterprises in Gansu who consume more than 10,000 tons of standard coal including metallurgy rose more than 2% year-to-year, according to statistics. 14 state-monitored key firms consumed 6.5768 million tons of standard coal, up 11.4%.
The local government sent 5 inspection teams to conduct an energy audit over 164 enterprises consuming more than 10,000 tons of standard coal in the province from July 17 in a bid to realize a target of reducing 4.5% of energy consumption within this year.

Jiangsu demolished outdated iron and steel capacities of 3.262 million tons during the first half(2008/7/21)

 According to the results of 2007 pollution and emission decreasing issued by Ministry of National Environment Protection, National Development and Reform Commission, Statistics Bureau and Ministry of Supervision, the emission of COD and SO2 in Jiangsu in 2007 decreased by 4.9% and 8.0% respectively from those of 2006, which means Jiangsu Province has overfulfiled the target set by center government for the second time in two years in line.
According to Zhu Tiejun, an official from provincial bureau for environment protection, the target for 2008 in Jiangsu is control the emission of SO2 under 1.1685 million tons, down 4.1% from that of 2007; that of COD under 862,100 tons, down 3.3%, which is hard to realize.
Take the first half for example, the emission of COD increased by 33,300 tons and that of SO2 increased by 53,900 tons. Therefore, it is hard to absorb the increases while realize the target for decreasing.
Therefore, the province takes a series of measures to secure the target, including the followings.
Adjust the production structure and demolish the outdated capacities. During the first half, Jiangsu Province closed and demolished outdated iron and steel capacities 3.262 million tons.
Stricter the standard for new projects. Till now, three development zones and two counties in Jiangsu Province has stopped giving approvals to new projects which will add new pollutions.

Second batch of export quotas of coke in general trade in 2008(2008/7/17)

 Issuing authority: The Ministry of Commerce of China
Issuing document: Circular No 67, 2008
Issuing date: July 2008
The MOC issued the second batch of export quotas of coke in general trade in 2008 according to the Regulation of the People's Republic of China on the Administration of the Import and Export of Goods.
1. The quota is presented to enterprises meeting application requirements. The quota assignment is based on the export performance of each enterprise during 2005-07 and partly considered exports by producers in 2006 to reflect a preferential policy toward producers.
2. Related authorities in charge of business affairs are required to inform local enterprises of this circular, keep a close watch on export activities and let the MOC know the result of the program.

Table of the second batch of export quotas of coke in general trade in 2008

Hebei steel industry shifts toward coastal area(2008/7/3)

 State-owned Hebei Iron and Steel Group opened at Shijiazhuang yeasterday with a registered capital of 20 billion yuan. The new group, incorporated Tangshan Steel and Handan Steel, will see an output rise from 31 million t/y to 50 million t/y by the end of 2009.
The CISA deputy vice president Luo Bingsheng said the debut of the new group may help boost the centralization degree of Hebei’s steel industry, which is the dominant industry in the province. In 2007, Hebei produced over 100 million tons of steel, the 6th consecutive year topping the output lists of crude steel, pig iron, steel products and iron ore nationwide. The focus of the steel industry in Hebei will gradually switch to coastal area, he added.
By the end of 2020, the province will squeeze 80 million tons of steel capacity.

China continues to face tight coal supplies(2008/7/2)

 The supply of coal used in power generation will continue to face a shortage, said an official with the China Electricity Council.
"The supply of coal, which fuels over two-thirds of China's power plants, is still tense nationwide, causing big pressure for the country's power plants as well as the total power supply in the country," said Xue Jing, director of the department of statistics and information under the China Electricity Council.
In Shandong province, local media reported that at present power plant reserves, which should usually have enough coal for at least 15 days of operation, only had reserves for 11 days.
As a kind of primary energy source, coal supplies will continue to face difficult times in the future, said Xue.
The relatively limited capacity of China's coal companies and transportation also caused the shortage, she said,
The summer, which is China's highest energy consumption period, will also bring about intense pressure on coal supplies, she said.
To ensure supplies, China sold less coal abroad in the first five months of the year, said the General Administration of Customs. Between January and May, China exported 18.5 million tons of coal, a decline of 4.1 percent from the same period last year.
But the export value rose 48.3 percent to $1.68 billion as the average price was up 54.68 percent to $90.8 per ton upon stronger demand worldwide.
Although the country announced it will raise the power tariff in July, this cannot totally offset power companies' losses mainly caused by rising coal price, said Xue.
"To power companies, this price hike can offset some 50 yuan increase in the coal price per ton, however, in some regions coal prices have increased by as much as 100 yuan per ton," she said.
The National Development and Reform Commission (NDRC) in July said electricity charges for commercial units would increase by 0.025 yuan per kWh from July 1.
But urban and rural residents and the farming and fertilizer production sectors were exempted from the increased electricity charges. Areas in Sichuan, Shaanxi and Gansu hit by the May 12 quake, too, have been exempted, the NDRC said.
The price of coal will be brought under government control temporarily, the NDRC said, because soaring coal price is the main factor behind higher electricity charges. (Source: China Daily)

ArcelorMittal establishes auto-use steel JV in China(2008/7/1)

(Xinhua)-- ArcelorMittal, the world's leading metal and mining company, is investing in China to establish a new automotive-oriented steel joint venture in the central Hunan Province.
The new company was expected to produce 1.2 million tons of automobile steel sheet annually, ArcelorMittal's China office told Xinhua here on Saturday.
ArcelorMittal, the Hunan-based Valin Group and Valin Steel Tube and Wire Co., Ltd. signed a cooperation contract on Friday for investing 5 billion yuan (725 million U.S. dollars) to set up the Valin ArcelorMittal Automotive Steel.
ArcelorMittal, Valin Group and Valin Steel Tube and Wire hold a stake of 33 percent, 33 percent and 34 percent, respectively, of the joint venture scheduled to turn out products by the end of 2010.
Lakshmi Mittal, chairman and CEO of the Luxembourg-based steel titan, said the move was part of its global and China strategy, aiming to better serve both global as well as domestic automotive clients through offering high value-added products with the support of ArcelorMittal technology.
Li Xiaowei, chairman of Valin Steel Tube and Wire, one of China's top 10 steel makers, said the company's development was boosted by the technological platform jointly set up with ArcelorMittal. He added it was improving the product mix and targeting high-end products.
The China Association of Automobile Manufacturers (CAAM) predicted the steel automotive application would reach 12.55 million tons this year nationwide and possibly climb to 21.76 million tons by 2015.
CAAM said although the country's top steel manufacturers, including Baosteel and Angang Steel, had started producing auto-use steel products, China still needed to import a large quantity of high-tier steel products, boosted by its surging domestic auto demands.
Dirk Matthys, CEO and country manager of ArcelorMittal, forecasts that the total number of vehicles in China will rise from the current 10 million to 18 million in 2017.
ArcelorMittal also has a stake in the Hong Kong-listed China Oriental Group Co. Ltd., a domestic iron and steel maker.

The export of iron ores from Yunnan in the first five months had a large decline(2008/7/1)

Due to the increases in export taxes for primary iron and steel products, the appreciation of RMB and the inflation in Vietnam and so on, Yunnan Province exported 50,000 tons of iron ores during the first five months of 2008, with an export value of 36.90 million Yuan, down 88.2% and 80.6% respectively from those (425,000 tons and US$ 190) of the same period in 2007.
According to an official from Customs of Yunan Province, in early 2008, the national government implemented export taxes for 113 iron and steel products out of the 203, including billet (25%), ferroalloy (20%), and wire rod and deformed steel bar (15%), which are the main products for export in Yunnan. Therefore, the export volume of iron and steel products from Yunnan Province had a considerable decline in the first five months. From Jan to May of 2008, the main exported iron and steel products from Yunnan include wire, deformed steel bar and ferroalloy, which took a share of 90%, but the volume and value decreased by 56.8% and 28.7% from those of the same period in 2007.

Shanxi: the companies who demolished the outdated capacities ahead of plan will gain a premium(2008/6/19)

According to the economy commission of Shanxi Province, the companies, which wash out the outdated capacities one or two years ahead of plan, will get 10% or 20% premium, beside the compensation from the government. Some time earlier, the provincial government of Shanxi announced the plan for compensation for the outdated capacities to be washed out in electricity, iron melting, steel melting, coke, cement, calcium carbide, iron alloy and other industries. To boost the washing out of the outdated capacities in high energy consuming and high pollution industries, Shanxi decided to give 10% premium to the companies who demolish the outdated capacities one year ahead, and 20% premium to companies two years ahead of the plan.
The standard for the demolishment of iron and steel capacities includes; the body of the blast furnace and/or the converter demolished, the sintering and other auxiliary facilities all demolished, the site cleaned and leveled.

Guangdong Steel Group expected soon(2008/6/17)

The NDRC officially approved early preparation work for Guangdong Zhanjiang steel base on March 17, which will set up by the State-owned Assets Supervision and Administration Commission of Guangdong Province (SASAC of Guangdong) and Baosteel Group on the premise of Guangdong’s promise to eliminate 10 million tons of outdated steel capacity. According to a responsibility letter, the province will scrap over 10 million tons of outdated capacity during the 11th five-year plan (2006-10).
The construction of assistant infrastructure for Zhanjiang project is proceeding smoothly. For example, Jianjiang water supply hub and a canal irrigation update in Leizhou broke ground on June 3. Shugang road linking the steel base and city proper and railway branch lines in East Island will start construction by the end of 2008 and in the first half of 2009 respectively.
According to a well-informed source, Guangdong Iron and Steel Group in the air will take Zhanjiang steel base as a vehicle and incorporate Guangzhou Steel and Shaoguan Steel with Baosteel, with its headquarter in Guangzhou. Baosteel will hold a 51% stake in the new company and SASAC of Guangdong hold remaining 49%.

China opposes US ruling on pipe dumping duties(2008/6/16)

The Ministry of Commerce (MOC) said that it firmly opposed to a recent final U.S. ruling on 29.57-615.92% of anti-dumping and anti-subsidy margins for standard steel pipes imported from China, noting that the use of the sanctions infringes U.S. rules and the tradition of not adopting anti-subsidy measures against non-market economies, which has been practiced since 1984.
What is more serious is the U.S. ruling that China distorted the domestic prices of hot-rolled sheet steel and subsidies were received by all pipe producers, ranging from state-owned to private makers.
It runs counter to the World Trade Organization (WTO) Agreement on Subsidies and Countervailing Measures and has greatly hurt the interests of Chinese industry and is not acceptable to China.
China will continue to use legal means and WTO dispute settlement mechanisms to protect the legitimate rights and interests of domestic companies, the MOC added.

Guangdong will compensate for stopped or closed iron and steel capacities(2008/6/16)

Yesterday, provincial government of Guangdong held a meeting for the outdated iron and steel capacities to be stopped, and the capacities to be closed due to the relocation of Guangzhou Iron and Steel. The Development and Reform Commission and Environment Protection Office of Guangdong Province signed Letter of Responsibility for Iron and Steel Capacities Closure due to the Relocation of Guanggang, and signed with concerned local governments Letter of Responsibility for Stopping and Washing Out Outdated Iron and Steel Capacities, including Shaoguan, Heyuan, Meizhou, Huizhou, Shanwei, and so on. The concerned capacities to be closed in the “11th Five-year” amounted to more than 10 million tons.
It is revealed on the meeting that the government will give the companies who loss capacities some economic compensation under condition, and the detail is planning.

CISA members required to fix prices for quake-hit areas(2008/6/5)

The CISA has issued a circular to urge its members to sell their products to quake-hit areas at a fixed price prior to May 11, as part of a nationwide campaign to engage in anti-quake and disaster relief efforts.
The members’ output of color coating sheet is understood to account for about 40% of China’s total production.
Governments in half provinces and cities of the country have so far issued measures to temporarily intervene in or supervise prices of steels as raw materials to build tents and makeshift houses in the quake areas.

Nine provinces or municipalities strict the steel prices at level before earthquake(2008/6/4)

According to National Development and Reform Commission (NDRC), till now, governments in nine provinces or municipalities have asked local steelmakes to strict the prices for certain steel products at level before earthquake in Sichuan, including hot rolled coils, color-coated sheets and so on for reconstruction and relief operation.
Major steel producing provinces like Liaoning and Shandong issued a notice, asking local steelmakers to maintain the prices of hot rolled coils and color-coated sheets at levels on 11th May, and push back these higher prices. Hebei provincial government asked the producers to maintain color-coated sheet ex work prices below or equating those on 11th May for three months.
Shanghai, Hubei, Jiangsu, Tianjin, Jilin, and Shaanxi also implement similar measures.

SFE ready for steel futures(2008/6/2)

The Shanghai Futures Exchange (SFE) was ready to launch steel futures while the studies on oil futures and copper option were also made a stage progress, the SFE director Wang Lihua unveiled at the 5th Shanghai Derivatives Market Forum.
He added transaction amount in the SFE has jumped to over 23 trillion yuan in 2007 from 6 trillion yuan in 2003. The exchange concluded over 9 trillion yuan during January to April of 2008, up 52% year-on-year with an account number of nearly 400,000.

China’s demand on shipbuilding steel to top 12 million tons(2008/5/29)

China’s demand on shipbuilding steel is expected to surpass 12 million tons in 2008, up 27.5% year-on-year, top 16 million tons in 2009, up 33.3% and over 18 million tons in 2010, according to a forecast by the China Association of the National Shipbuilding Industry (CANSI).
Chinese shipbuilding industry consumed a total of 9.41 million tons of shipbuilding steel for ship repair and building, block assembly and ocean engineering in 2007, 75% of which were used in the shipbuilding sector. Of the total consumption, flats were 5.91 million tons, sections were 680,000 tons and others were 520,000 tons compared to 4.64 million tons of flats, 560,000 tons of sections and 460,000 tons of others in 2006.
Three provinces and municipalities with shipbuilding steel consumption above one million tons last year were Shanghai (1.82 million tons), Jiangsu (1.75 million tons) and Liaoning (1.33 million tons). Zhejiang was also close to the one-million-ton mark with a consumption of 940,000 tons.
China will have a shipbuilding completion of up to 25 million dwt in 2008 and 40 million dwt in 2009. China’s consumption of steel in the shipbuilding sector is expected to be 9.3 million tons in 2008, 13.56 million tons in 2009 and 15.4 million tons in 2010.

Olympic won’t hit the iron and steel companies in Hebei Province(2008/5/29)

The rumor that all the iron and steel company around Beijing will be closed during the Olympic Games is not true, Wang Dayong, general secretary of Association of Metallurgy Industry in Hebei Province, said that during an interview. “As far as I know, the middle and small sized companies who has high pollution and energy consumption will be closed. But these 30 plus major companies with a capacity of more than 1.00 million tons per year will not be highly affected, as these company meet the national standards for pollution control,” he said.

Shanxi to compensate firms eliminating backward(2008/5/28)

Shanxi province plans to pay over 30 million yuan to 15 local calcium carbide and ferroalloy enterprises for their efforts to eliminate outdated capacity.
According to industry policy, the province must shut down ferroalloy ore furnaces below 5,000-6,300 kva, silicon, calcium furnaces and silicon, calcium, barium and aluminum furnaces below 1,500 kva by the end of 2008, eliminate calcium carbide furnaces with a unit volume between 5,000-12,500 kva and open calcium carbide furnaces, ferroalloy ore furnaces of 6,300 kva, calcium carbide furnaces and silicon, calcium, barium and aluminum furnaces below 5,000 kva by the end of 2010.
The related authorities should draft a 3-year program to scrap backward in a bid to improve structural adjustment and industrial level.
The governments should phase out substandard producers year by year by taking compulsory measures such as cutting off water, electricity and gas supplies, stopping transportation, loans and licenses while encourage related enterprises to retreat from the market in advance by policies including raising entry threshold, differential electricity fee and “the earlier one leaves the more he rewards”.

China unlikely to intervene in domestic steel prices(2008/5/26)

Steel prices in China should be decided by the market, with no government interventions, Xiong Bilin, Industrial Department deputy director of the National Development and Reform Commission (NDRC), said on Thursday.
Xiong said these were his own personal opinions while commenting on Baosteel Group's delayed release of its price adjustments in the coming quarter, which had been scheduled for May 20.
Surging prices of imported iron ore would push up the costs of domestic steel makers by 400 to 600 yuan (57 U.S. dollars) per tonne, said Xiong.
The overall cost would rise by about 1,000 yuan per tonne, taking into account increased coke prices, shipment and energy charges, said Xiong.
The steel makers might want to pass on the cost rises to downstream enterprises, depending on what downstream players could afford, he said.
"Among them, the electric appliance manufacturers could be weaker in taking on upstream price increases. The high steel prices will go down if they were unacceptable to downstream companies," said Xiong.
Baosteel Group might also be contemplating the affects of the 8.0-magnitude earthquake that hit southwest China last week, said Hu Yanping, an analyst with Umetal.com. Reconstruction work would require large amounts of steel.
But given the high domestic prices already pressing upon downstream companies, market concern is that the government might raise export taxes to guarantee domestic supply, Hu said.

China ports iron ore stocks at record 79.22 mln tonnes(2008/5/22)

Imported iron ore stockpiles at Chinese ports reached a record 79.22 million tonnes as of May 15, and the figures are likely to increase further, China's National Development and Reform Commission said.
The commission, the country's top planning body, held a meeting on Friday to discuss how to lower iron ore port stocks, it said in a statement posted on its website, www.ndrc.gov.cn, on Tuesday.
It said the massive inflows of iron ore had caused overstocking and severe congestion in ports in northern China, including Qingdao, Rizhao, Tianjin and Lianyungang.
Lowering iron ore port stocks may help reduce domestic prices for iron ore and strengthen the country's bargaining position in talks over 2008 term prices with Australian miners.
Though Brazilian miner Vale, the world's top iron ore producer, has already agreed on a 2008 price hike of 65-72 percent, talks with Australian miners BHP Billiton Ltd/Plc and Rio Tinto are in a deadlock.
The Australian miners have demanded freight premiums to make up for the difference in transport costs, which at present stand at as much as $60 a tonne.
Severe port congestion in China, due to the large port iron ore stocks, has also helped push up freight rates for dry bulk cagoes to new records. The benchmark Baltic Dry Index hit a fresh high of 11,793 overnight. (Source: Shanghai Daily)

Hebei raises power costs for outdated capacities to hasten the washing out of outdated iron and steel capacities(2008/5/20)

According to the news from National Development and Reform Commission, Price Bureau and Development and Reform Commission in Hebei Province released a notice, which said that the power prices for operators of outdated iron and steel equipment, in order to force them out of market as soon as possible.
According to the notice, the price for outdated equipments will be 0.3 Yuan per kwh higher than the normal, and 0.1 Yuan higher than that the national standard since 1st May, and 0.4 Yuan per kwh higher since 1st Jan 2009. Meanwhile, the provincial government will check the results of the price hike, and will not allow any adjust to the prices standards. Those who should be charged with higher power prices but haven’t will be picked out, and pay that fee in a limit period.
According to the responsibility documents signed with NMDC, 5.69 million tons of iron making capacity and 8.13 million tons of steel making capacity in Hebei Province will be stopped by the end of 2010. Raising the price differential of power for outdated equipments will help hasten the closure of these capacities, and encourage the industry integration.

Iron and steel plants 200 km around Beijing will be closed(2008/5/19)

On 13th May, 87 days countdown to the 29th Olympic Games, the close of high pollution and high energy consuming companies, including iron and steel companies in Hebei Province began countdown. According to industry sources, now the concerned departments of the government have made plans to secure a higher air quality during the Games in Beijing, Tianjin, Hebei, Shanxi, Inner Mongolia, Shandong, and that for Beijing, Tianjin and Hebei will be more specified.
the condition
Zhao Hong, director of production in Tangshan Jianlong, confirmed the news. “42 companies of iron and steel, cement and glass and other industries will be closed,” He said.
With the largest iron and steel output, Hebei Province committed to securing a higher air quality during the Games earlier. In a notice issued on 1st April, industry office of Development and Reform Commission in Hebei Province said that 42 companies in Shijiazhuang, Chengde, Zhangjiakou, Qinhuangdao, Tangshan, Langfang and Baoding will be permanent stopped or demolished or temporary closed during the Games.
As to Tangshan, six iron and steel companies will be closed, including Tangshan Stainless Steel Company Ltd, Tangshan Xingye Gongmao Company Ltd, Tangshan Hangu Iron and Steel Company Ltd, Tangshan Lugang Iron and Steel Company, Tangshan Ruifeng Iron and Steel (Group) Company Ltd and Tangshan Jianlong.
Till now, there is no public clearance on the company lists to be closed and specific standards. According to small and middle size iron and steel companies, the related departments may control the pollutions from iron and steel companies by cutting or limiting the supply of electricity and water.
Dong Xiangzhu, General Manager of Tangshan Fenggang Iron and Steel, said, “It is said that all the iron and steel companies 200 km around Beijing is likely to be closed, but there is no written decisions till now. Small blast furnaces with an inner capacity of 200 cube meters below have been all shut down.”
200 m3 and below blast furnaces is to be demolished according to the national industry policy, therefore it is no surprise to see them shut down. But, the deadline of these furnaces was pushed back by two years, from the end of 2007 to the end of 2009. As a result, closing these blast furnaces may be due to the Games.
Opportunity for integration
Shougang, a major producer in China, will also be affected. Shougang have promised to cut output by 480,000 tons per month during the Games, to 200,000 tons per month.
But, relatively, the major iron and steel companies will have a lighter affection. An industry source said, “Closing a capacity of iron and steel melting of 4.00 million tons per year is in accord with the relocation project, not all due to the Games. And the hot strips facilities and other main equipments of Shougang have been moved to Caofeidian.” CISA said that the declines in output would not affect the supply and demand relation.
According to the statistics, the pig iron output during the Games will decrease by 1.98 million tons per month (Shougang and the six companies in Tangshan), amounting to 19% of the whole in Hebei, Beijing and Tianjin, and 5% of that in China. Adding the other small and middle sized companies, the decline in pig iron output will amount to 3.88 million tons per month, taking up 37% of that in Beijing, Tianjin and Hebei, and 10% of that in China.
Analysts points out, traders may take chances to increase the prices for iron and steel products. Now the price for hot rolled sheet and coil in Tianjin has risen to 5,750 Yuan per tons, and that in Beijing to 5,800 Yuan to 5,820 Yuan, and the prices in North all exceed those in East.
According to industry sources, taking the opportunities of output decline during the Games, China may boost the industry adjustment in North, by demolishing high pollution and high energy consuming companies and integration among companies.
Now the total production of major companies in North takes 45% to 50% of the whole in China, and the ratio may be lifted to 70% if integrated those small plants.

Beijing National Stadium and New CCTV Center use “Jinxi” H-Section steel(2008/5/13)

Till 5th May 2008, Jinxi Iron and Steel’s large H-section steel production line has been operational two years. During the past two years, H-section steel from Jinxi Iron and Steel has been used in many large projects both in domestic and abroad, especially the utilization in Beijing National Stadium, also known as “Bird’s Nest”, the main track and field stadium for the 2008 Summer Olympics, and the new center of CCTV, which gives the company an opportunity to increase the fame of this product.
Since launching operation, the “Jinxi” H-section has won ISO9001-2000 quality Attestation and European Quality Standard EC Attestation, and also the titles like first brand in H-section market of China, and the first choose of customers from domestic. This product has been sold to 15 countries and areas, and been utilized in many key projects, “Bird’s Nest” and including the new center of CCTV.

MOC issues supplementary list of coke, rare earth exporters for 2008(2008/5/12)

Issuing Authority: The Ministry of Commerce of the People’s Republic of China
Issuing Number: Circular No 38 2008
Issuing Date: May 5, 2008

The Ministry of Commerce (MOC) published a supplementary name list of coke and rare earth exporters for 2008 in accordance with the Application Conditions and Procedures of Export Quotas of Coke in 2008 (MOC Circular No 92 2007) and the Application Conditions and Procedures of Export Quotas of Rare Earth in 2008 (MOC Circular No 93 2006) as follows:

The supplementary list of coke exporters for 2008
1. Qingdao Coking Gas Co Ltd
The supplementary list of rare earth exporters for 2008
1. Changshu Shengchang Rare Earth Smeltery, Jiangsu Province



                                           The Ministry of Commerce of the People’s Republic of China
                                                                        May 5, 2008
　

Steel prices continue to warm up in May(2008/5/7)

Most mills across the country began a new round of price hikes from early May, with a rise ranging from 50-450 yuan per ton. The high end came from Shagang, who raised rebar price by 450 yuan per ton to 5,470 yuan per ton starting from May 1st.
Besides, Wisco has announced to lift wire rod prices by 300-400 yuan per ton in June while Liuzhou Steel has raised prices on some products by 100 yuan per ton. Selling prices have also been rising all the way with the hike of raw material prices. CISA’s 72 members achieved a profit of 44.057 billion yuan in the first quarter, up 26.47% year-on-year.

Kaifeng City will deal with local ferroalloy, calcium carbide and corundum companies(2008/4/30)

According to Environment Protection Office in Kaifeng City, the government there plans to deal with those companies in ferroalloy, calcium carbide and corundum industries that have a great pollution. Now the local government is checking all the companies of these industries and setting specified measures, targets and deadlines for each company who has been polluting the environment, basing on the Technology Standards of Pollution Control for Companies in Ferroalloy, Calcium Carbide and Corundum Industries in Henan Province. These projects without environment approval will be stopped till they get licenses, and be punished according to associated laws and rules. To those projects that are forbidden by national government, they will be demolished in a certain time. To those projects, which are in accord with the national policies and have got environment protection licenses, but fail to meet the requirement for total amount control of pollutions, they will be ordered to be corrected in a limited time period.

Industry department of NDRC studied Guangxi Fangchenggang Iron and Steel base(2008/4/25)

Leading by Xiong Bilin, vice director of industry department of NDRC (National Development and Reform Commission), a group from NRDC went to Guangxi Zhuang Autonomous Region and had a check of the preparation work of Fangchenggang Iron and Steel Base Project there, focusing on the port and the iron and steel base construction and the relocation of local residents.
The iron and steel base project is the largest investment project in Guangxi so far. The project is scheduled to break ground in Dec 2008, the 50th anniversary ceremony of Guangxi Zhuang Auto Region, and be completed in three years.
April 7th to 8th, Wugang, the major investor, invited several professors in iron and steel industry to give consultation, and set the target of construct the project a resources-saving, environment-friendly and clean project, with the resources fully used and less emission. The project will be a coastal iron and steel base in China leading the trend of iron and steel technology.

Beijing’s investment in heavy energy consuming sectors plunged(2008/4/23)

Beijing’s investment in chemical industry, cement and steel sectors reduced by 45.9%, 53.3% and 76.9% year-on-year respectively during the first quarter of 2008, according to information released by the Statistics Bureau of Beijing Municipality and the State Statistics Bureau. However, the slowdown in the investment would only put a limited influence on the growth of the city’s economy. Beijing government has made a big adjustment in the industrial structures, especially in some heavy polluting, heavy energy consumption and resources-intensive sectors, including cement, steel and petrochemical. For example, Shougang has already moved its main plants in the city to Hebei province and will largely reduce production of steel and pig iron this year.

Zhanjiang steel project starts sea-area using examination(2008/4/16)