| Chromium Ore and Ferrochromium Production |
Power price rise ‘will impact’ Hernic Ferrochrome operations | | Hernic Ferrochrome says the electricity price hikes planned over the next three years by South African power utility Eskom will negatively impact on its production and costs. The company accepts that some increase in electricity tariffs is necessary but says that the current initiative will prove harmful to the industry in the long term. Eskom has received approval from the National Energy Regulator to raise prices by an average of 25% per year for the next three years. SBB Daily Briefing, Stainless Edition, 26 February 2010. |
Ferrochromium producers ready for charge chrome benchmark talks | | South African ferrochromium producers are confident that strong demand and rapidly rising spot prices will boost their demands for a 30c/lb increase in the benchmark price. In spite of protests from steelmakers, market conditions favour the ferrochromium producers. Rising prices have been attributed to an increase in demand for stainless steel, not only in China but also in North America and Europe. In the first two months of 2010, the spot price of high-carbon ferrochromium has risen by 25c/lb, from $0.85-$0.95/lb to $1.10-$1.20/lb. Metal Bulletin Weekly, 1 March 2010, p 4. |
Chinese ferrochromium prices set to rise on higher ore costs | | Chinese high-carbon ferrochromium prices look set to rise to 9000 yuan ($1319)/t backed by firmer ore prices and increased demand from stainless steel mills. Traders claim that production costs will be close to 9000 yuan/t in March or April, based on the current spot price of ore. Many ferrochromium producers only have sufficient stocks of ore for one month or less, so producers will have to raise their ferrochromium offers after they have purchased fresh supplies of ore. China’s chromium ore imports are expected to rise in February, following the surge in bookings in December. Metal Bulletin Daily, 1 March 2010, p 3. |
High-carbon ferrochromium in tight supply | | High-carbon ferrochromium is in tight supply in the USA as stainless steel mills increase output and South African producers struggle with rising power and production costs. The US spot market price of high-carbon ferrochromium is trading at $1.28-$1.33/lb, up from $1.25-$1.28/lb. The price of low-carbon material remains unchanged. Traders say that spot market purchases by the big stainless steel mills are “inconsistent”, with demands varying from 10 to 100 t/day. Metal Bulletin Daily, 1 March 2010, p 3. |
Lonmin signs chromium tailings processing deals with Xstrata and ChromTech | | Lonmin has signed contracts with Xstrata-Merafe and ChromTech for the construction of two chrome recovery plants that will treat the tailings from the UG2 concentrators at the platinum producers’ Marikana operations. Xstrata-Merafe and ChromTech will build and operate the plants, and will also buy the chromite concentrate from the plants. The Xstrata-Merafe contract is based on the volume of chrome tailings treated rather than on a fixed-time period. The Xstrata-Merafe plant is expected to treat 1.5 Mt/y of chromite concentrate contained in the tailings feed. The ChromTech plant will operate on a five-year contract, during which ChromTech will process 300 kt/y of chromite concentrate contained in tailings feed. While no financial details of the deal have been provided, the contracts are expected to boost Lonmin’s profits. Metal Bulletin Daily, 2 March 2010, p 3. |
Merafe sees barriers to new entrants in South African ferrochromium | | Merafe Resources believes that limited power supplies from Eskom, difficulties accessing finance and the huge capital costs involved, will prevent both capacity expansions and new entrants to the South African ferrochromium industry for at least three years. China will continue to be the fastest-growing stainless steel producing country and will drive the strong demand for ferrochromium. The statement came as Merafe Resources released its 2009 results, reporting a R152.3 million loss for the year compared with a profit of R1.03 billion in 2008. The company forecast a better year in 2010 as rising demand from China meets supply restrictions from South Africa. It also predicts that the forecast production of stainless steel over the next five years will result in demand for ferrochromium increasing by 6% per year over the same period. Metal Bulletin Daily, 2 March 2010, p 3. |
Ruukki sees opportunity in forecast ferrochromium deficit | | Finnish ferrochromium producer Ruukki Group is looking to capitalise on what it perceives as a long-term imbalance in the supply-demand dynamic of the ferrochromium market. The company believes that in the long term demand will outstrip supply and there appear to be no plans for capacity expansion apart from those of the Ruukki Group. Ruukki plans to build two new furnaces at its Mogale Alloys subsidiary in South Africa. The new furnaces will have a combined capacity of 220 kt/y. When added to the company’s four existing furnaces, they will almost triple the current capacity of 120 kt/y. Metal Bulletin Daily, 3 March 2010, p 3. |
| Stainless Steel and Stainless Steel Scrap Industries |
EU stainless scrap prices up on fierce merchant competition | | Fierce competition between merchants to secure supplies of stainless steel scrap have driven up prices. Merchants say that the prices they are paying for scrap are higher than the prices they can charge the mills. In the UK, the price of 18/8 solids is ?1220-?1270/t, up from ?1150-?1200/t a week ago. In Europe, the price increases were more modest, with 18/8 solids selling for $2010-$20160/t, up from $1950-$2000/t. Metal Bulletin Daily, 26 February 2010, p 6. |
Posco raises local stainless prices by $86 for March | | Posco has increased its March domestic list prices of Series 300 stainless steel by 100,000 won ($86)/t, citing market expectations of demand recovery and increases in the nickel and chromium prices. However, the price increase is less than that anticipated by the market, and reflects Posco’s efforts to secure market share. Series 400 and Series 200 prices remain unchanged. Posco also claims it has to protect its market share against competition from foreign imports. Metal Bulletin Daily, 26 February 2010, p 5; SBB Daily Briefing, Stainless Edition, 25 February 2010. |
Japan stainless export offers to rise by up to $200 | | Japanese stainless steel producers Nippon Steel and Sumikin Stainless Steel (NSSC), and JFE Steel, plan to increase their export offers by $100-$200/t for April delivery, citing rising LME nickel prices. In Taiwan, leading stainless steel producers Yieh United Steel Corp(Yusco) and Tang Eng Iron Works, will increase their export prices by $60-$270/t and about $130/t respectively in March due to higher raw materials costs. The domestic list price for Series 300 material will also increase. Both companies are operating at full capacity. Metal Bulletin Daily, 1 March 2010, p 1, 2 March 2010, p 5; SBB Daily Briefing, Stainless Edition, 25 and 26 February 2010. |
Stainless steel sector needs further consolidation | European market players agree that, while Chinese stainless steel producer Baosteel is unlikely to acquire a major European stainless producer, such as Acerinox or Outokumpu, consolidation in the stainless steel industry is still necessary. Stainless steel expert Marcus Moll says that, although Baosteel could finance such a purchase, it does not have the capability to manage a European company. However, he says that it would “make sense” to form a global concern that would include Baosteel and European companies but under the leadership of a European manager. Acerinox is focused on developing its integrated mill in Malaysia but it could be years before the project is completed. Moll says Acerinox should stop the Malaysia project and concentrate instead on co-operating with Baosteel in Asia. Metal Bulletin Daily, 2 March 2010, p 4.
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US stainless producers hike April surcharges | | US stainless steel producers Allegheny Technologies, AK Steel and North American Stainless, will increase their stainless surcharges by 8.8%-20.7% in April, citing higher raw material costs. The increases will include Series 300, Series 400 and Series 200 stainless products. Metal Bulletin Daily, 3 March 2010, p 5. |
Posco mulls $30-$70 increase for second quarter cold rolled coil exports | | Posco is considering increases of $30-$70/t fob on its cold rolled coil exports for the second quarter of 2010. While offer prices have not yet been finalised, Posco says that the recent increase in the costs of raw materials will definitely affect the steel price. Metal Bulletin Daily, 3 March 2010, p 5. |
Taigang keeps prices flat despite higher nickel costs due to weak demand | | China’s largest stainless steel producer, Taigang Stainless Steel, has kept its list prices unchanged despite the higher nickel price. Taigang says that market sentiment is cautious and traders are complaining about slow transactions. Many end-users have still to come into full operation after the Chinese New Year holidays. Metal Bulletin Daily, 3 March 2010, p 5. |
| Economic Indicators |
South African metals companies face higher power costs | | South African power utility Eskom has been granted approval to increase its tariffs with effect from 1 April 2010. The National Energy Regulator of South Africa (NERSA) rejected Eskom’s request for a 35% per year tariff increase over the next three years but instead granted price increases of around 25% per year on the average standard tariff for 2010, 2011 and 2012. Prices in South Africa will now be 41.57c/kWh in 2010/2011, 52.30c/kWh in 2011/2012 and 65.85c/kWh in 2012/2013. The increased tariffs are necessary to help Eskom fund a five-year expansion plan that will cost about R460 billion. SBB Daily Briefing, Stainless Edition, 25 February 2010. |
| Conferences and Publications |
20th Industrial Minerals International congress & Exhibition | 21-24 March 2010, Miami, USA.
To register, contact Laura Tavergnier, Metal Bulletin and Industrial Minerals Events,
Tel. +44 (0) 20 7779 8020; Fax. +44 (0) 20 7779 8294;
email: ltavergnier@metalbulletin.com
Website: www.metalbulletin.com/events and www.indmin.com/events
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11th Asian Ferro-alloys Conference | 24-26 March 2010, Kowloon Shangri-La, Hong Kong, China.
To be held in conjunction with the 2nd Minor Metals Conference on 24 March 2010.
Metal Bulletin Events, email: conferences@metalbulletin.com,
Website: www.metalbulletin.com/events/afa
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ICDA Members’ Meeting | 25-27 May 2010, Almaty, Kazakhstan
The preliminary programme and registration forms are available from the ICDA website: www.icdachromium.com |
5th Asian Stainless Steel Conference | 31 May-2 June 2010, Renaissance Tianjin TEDA Convention Centre Hotel, Tianjin, China.
Organised by Metal Bulletin Events in association with SMR (Steel & Metals Market Research).
Metal Bulletin Events, email: conferences@metalbulletin.com,
Website: www.metalbulleti.co/events
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INFACON XII – The 12th International Ferro-Alloy Congress | 6-9 June 2010, Helsinki, Finland.
Congress theme: Sustainable Future.
The main topics to be covered by the congress include:
Production technologies and operation,
Engineering aspects and concepts,
Fundamentals and theory,
Energy and environment,
Commercial aspects.
Final provision of papers due 28 February 2010.
For further information contact: Asmo Vartianen, Congress secretary, Outotec Oyj, Tel. +358 20 529 2012, email: infacon12@outotec.com;
Website: http://www.infacon12.com
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9th International Stainless & Special Steel Summit | 7-9 September 2010, The Westin Excelsior, Rome, Italy
Organised by Metal Bulletin Events in association with SMR (Steel & Metals Market Research).
Metal Bulletin Events, email: conferences@metalbulletin.com,
Website:
www.metalbulleti.co/events
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INOX 2010 | The Brazilian Stainless Steel Conference, 10th edition.
20-22 September 2010, Rio de Janeiro, Brazil.
Submission of papers: a 400-word abstract to be submitted to arturoc@nucleoinox.org.br before 30 November 2009. The completed manuscript is to be submitted by 30 March 2010.
The official language of the conference is English.
Website: www.inox2010.com.br
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7th European Stainless Steel Conference — Science and Market | 21-23 September 2011, Como, Italy.
Organised by AIM – Associazione Italiana di Metallurgia in co-operation with Centro Inox and Politecnico di Milano.
Call for papers. Organising Secretariat: Associazione Italiana di Metallurgia, Tel. +39 02-7602.1132 or 7639.7770; Fax. +39 02-760.0551; email: aim@aimnet.it;
Website: http://www.aimnet.it/stainless2011.htm
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