UPDATE 1-China steel output dipped 2.4 pct in mid July-CISA

SHANGHAI, July 29 (Reuters) – China produced an average 1.65 million tonnes of steel per day in the middle of July, 2.4 percent lower than the first 10 days of the month, data from the China Iron & Steel Association (CISA) showed on Thursday.

In the data seen by Reuters, CISA said output from China’s major steel producers, thought to include the country’s 61 biggest mills, fell by 3 percent to 1.34 million tonnes in the middle 10 days of July, the second straight fall this month.

The latest output rate translates into 602 million tonnes on an annualised basis, still 6 percent higher than last year’s record.

With demand still uncertain and prices dropping, a number of small- and medium-sized mills have already slashed output and even closed down some of their facilities as stockpiles soar.

But the market has been looking closely at production volumes from China’s biggest steel enterprises to see whether they will follow suit.

“Big steel mills won’t have plans to cut production, but some have scheduled overhauls for the summer,” said Xu Zhongbu, chief executive of Beijing Metal Consulting.

Xu said it was difficult to draw conclusions from the output figures for less than one month, and suggested the industry was still failing to recognise the true extent of its problems, especially after a brief price recovery last week.

“Last week’s price increases will not be a good thing for the steel market and might have persuaded some mills to abandon their plans to cut output.” (Reporting by Ruby Lian and David Stanway, Editing by Ken Wills)

UPDATE 1-Japan steel output falls in June from May

TOKYO, July 20 (Reuters) – Japan’s crude steel output fell 3.8 percent in June from the previous month, data showed on Tuesday, and the industry association head warned that a build-up of inventories in China had clouded the outlook for exports.

Crude steel output came to 9.35 million tonnes in June, down 3.8 percent from May but marking a 35.9 percent rise from June last year, the Japan Iron and Steel Federation said. The figures are not seasonally adjusted.

Eiji Hayashida, chairman of the federation and president of JFE Steel Corp, told a news conference that inventories of cars and other steel-using products have been rising in China since late June, somewhat clouding the outlook for exports.

Japan’s government had forecast last month that Japan steel output would total 26.82 million tonnes in the July-September quarter, up 10 percent from the same period a year earlier but down 4.3 percent from the previous quarter. [ID:nTOE65H020]

Signs of a slowdown in China’s property sector have led to heavy inventory correction in the region and stronger downward pressure on prices since mid-April, raising concerns that Japanese steelmakers will be forced to cut back on their exports.

Japanese steelmakers, including Nippon Steel Corp (5401.T), the world’s fourth biggest, and No.5 JFE Holdings Inc (5411.T) now generate nearly 50 percent of their steel revenues from exports as domestic demand remains sluggish. (Reporting by Yuko Inoue)

Japan June crude steel output rises 35.9 pct yr/yr

July 20 (Reuters) – Japan’s crude steel output rose 35.9 percent in June from a year earlier to 9.35 million tonnes, the Japan Iron and Steel Federation said.

Output, which is not seasonally-adjusted, declined 3.8 percent from May. (Reporting by Yuko Inoue)

UPDATE 1-MMK Q2 crude steel output up 9 pct q/q

MOSCOW, July 19 (Reuters) – Russian steelmaker Magnitogorsk Iron & Steel Works (MAGN.MM) (MAGNq.L) said on Monday it increased second-quarter crude steel output by 9 percent compared with the preceding three-month period.

Rivals Evraz (HK1q.L) and NLMK (NLMK.MM) last week also said they increased output, in the hope that the trend of weaker prices in the last two months will turn around in the autumn, [ID:nLDE66E0P1] while MMK forecast 2011 steel output to rise 20 percent to 12 million tonnes. [ID:nWLA8353]

MMK said in a statement its production of crude steel totalled 2.985 million tonnes versus 2.732 million tonnes in the first quarter. It did not provide year-ago numbers.

The company, Russia’s third-largest steel producer by volume output, earlier forecast flat second-quarter production before it was expected to fall slightly during the quieter summer months of June and July. [ID:nLDE65A07O]

MMK also said finished products output grew 7 percent quarter-on-quarter to 2.623 million tonnes from 2.453 million tonnes, and its domestic and export prices kept on increasing in the April through to June period.

The company, which is controlled by Russia’s ninth richest man Viktor Rashnikov, said average price of steel products increased by 17 percent.

Its Moscow-listed stock opened 0.54 percent higher on Monday, slightly outperforming the broader market index which edged up 0.17 percent. (Reporting by Maria Kiselyova; editing by Keiron Henderson)

Japan July-Sept crude steel output seen up 10.7 pct y/y

June 29 (Reuters) – Japan’s crude steel output in July-September is expected to grow 10.7 percent from a year earlier to 26.82 million tonnes, helped by exports to Asia and demand from domestic manufacturers such as carmakers and electronics makers, the trade ministry said on Tuesday.

Basic Materials

That would be down 4.3 percent from April-June, the ministry said, following a survey of Japanese manufacturers, exporters and steelmakers. (Reporting by Yuko Inoue)

Japan July-Sept crude steel output seen up 10.7 pct y/y

June 29 (Reuters) – Japan’s crude steel output in July-September is expected to grow 10.7 percent from a year earlier to 26.82 million tonnes, helped by exports to Asia and demand from domestic manufacturers such as carmakers and electronics makers, the trade ministry said on Tuesday.

Basic Materials

That would be down 4.3 percent from April-June, the ministry said, following a survey of Japanese manufacturers, exporters and steelmakers. (Reporting by Yuko Inoue)

UPDATE 1-African Minerals says CRM investment completed

LONDON, June 16 (Reuters) – African Minerals Ltd (AMIq.L) said a proposed 167.8 million pound ($260 million) investment by China Railway Materials (CRM) to develop the Tonkolili iron ore project has been completed following Chinese government approval.

As previously announced, CRM will take a 12.5 percent stake in African Minerals as a result of the investment and has the right to appoint a non-executive director to the board.

In February, African Minerals verified the size of the Tonkolili project in Sierra Leone at 10.5 billion tonnes of magnetite, making it the biggest deposit in the world.

China’s steel sector, which produced almost half the world’s steel output last year, is the biggest consumer of iron ore.

(Reporting by Julie Crust; editing by Victoria Bryan)

($1=.6465 POUND)

Japan Apr-June crude steel output seen +37.1% y/y

TOKYO, March 29 (Reuters) – Japan’s crude steel output in April-June is expected to grow 37.1 percent from a year earlier to 26.17 million tonnes thanks to strong exports to Asia and demand from carmakers, the Ministry of Economy and International Trade an Industry said on Monday.

Basic Materials

That would be down 1.5 percent from January-March, the ministry said after a survey of Japanese manufacturers, exporters and steelmakers. (Reporting by Yuko Inoue)

PRESS DIGEST – China – April 17

BEIJING/SHANGHAI, April 17 (Reuters) – Chinese newspapers available in Beijing and Shanghai carried the following stories on Friday. Reuters has not checked the stories and does not vouch for their accuracy.

CHINA SECURITIES JOURNAL

– China’s steel industry expanded its losses in March compared with the first two months, despite a 4.11 percent rise in crude steel output in March from February to 42.08 million tonnes, said Luo Binsheng, deputy chief of the China Iron and Steel Association.

SHANGHAI SECURITIES NEWS

– It could take several quarters for China’s exports of machinery and electronics to recover, as these are not items that are subject to inelastic demand by foreign customers, said China’s commerce minister Chen Deming.

– Combined currency assets of China’s financial institutions came to 69.4 trillion yuan ($10,160 billion) as of the end of March, up 25.1 percent from a year earlier, while total debts rose 25.4 percent to 6.55 trillion yuan, data provided by the country’s banking regulator showed.

– China’s big four state banks increased their lending by 994.3 billion yuan in March, accounting for 52.6 percent of increased bank lending in the country, data provided by the central bank showed.

– State aircraft maker Aviation Industry Corp of China has secured a five-year credit line worth 100 billion yuan from China Export-Import Bank to help boost its trade and expansion overseas.

– Geely Automobile Holdings (0175.HK) said its 2008 net profit rose 191 percent to 879 million yuan, while its vehicle sales rose 12 percent to 204,205 units.

FACTBOX-Global iron ore price forecasts revised down

April 17 (Reuters) – Global miners and steel firms are locked in annual talks to settle iron ore term prices for the year starting April 1 and analysts are lowering their price forecasts as a slowing global economy is set to cut steel output sharply.

Following are some forecasts of iron ore price changes for 2009/10 recently announced by brokerages (in percentage change for Australian iron ore fines).

For a poll by Reuters in late January, click [ID:nLN671246]

REVISED FORECAST FORECAST DATE PREVIOUS Daiwa -30 April 16 -25 Morgan Stanley -40 April 1 -35 Merrill Lynch -30 March 30 -20 Deutsche Bank -40 March 27 -30 Macquarie -35 March 17 -30 Goldman Sachs JBWere -40 March 17 -30

COMMENTARY:

DAIWA INSTITUTE OF RESEARCH

“We still do not foresee a retreat of 40-50 percent year on year, the range requested by Chinese steelmakers… Iron ore suppliers showed willingness to compromise, as witnessed by the fact that Rio Tinto proposed a 20 percent drop in temporary prices.

“Nevertheless, we believe there is still a rift between the two parties. If iron ore spot prices, which are showing signs of bottoming, rebound, both parties may compromise partly because the new fiscal year has already started.”

MORGAN STANLEY

“The outlook for the iron ore market continues to deteriorate amid a sharp collapse in global economic growth and repeated delays in implementing government stimulus packages.

“We now expect a 2009 supply surplus of 47 million tonnes, up sharply from our previous estimate of 16 million tonnes… Barring a more aggressive supply response than we have modeled, world iron ore output this year will exceed total demand by 6 percent: this should drive a substantial price decline.”

MERRILL LYNCH

“We forecast a 30 percent drop, mainly because we expect the majors to delay projects and reduce production supply in order to support product prices. The market is more bearish at a 50 percent cut, which would take prices to below 2007/08 levels.”

“It would probably require a cut of more than 50 percent to begin troubling the producers … So likely range of contract price outcomes for these negotiations is 30-70 percent decline year on year.”

DEUTSCHE BANK

“Against the backdrop of plunging global steel production, producer curtailments, and a moribund spot price, the Chinese will take the price down closer to 2007 levels.”

MACQUARIE

“This (lowered forecast) reflects the reality of an oversupplied iron ore market and a 2009 steel market substantially weaker than we had previously thought.

“Our forecasts assume that prices do not fully roll back to 2007 levels…This is due to the fact that the major producers have taken steps to quickly adjust supply with demand and also due to a sharp downward adjustment in domestically-produced iron ore in China.”

GOLDMAN SACHS JBWERE:

“Global seaborne trade in iron ore is expected to contract by almost 70 million tonnes this year, with all major iron ore importing regions (with the notable exception of China) expected to register large double digit percentage falls in crude steel production.

“We believe the major contract suppliers of iron ore will eventually be forced to concede bigger than previously expected price cuts in order to compete with spot suppliers.” (Reporting by Miyoung Kim in SEOUL)

JSW Steel reports highest-ever 4Q output; shares up by 10.4%

Reporting its highest-ever fourth-quarter crude steel output figures of 11.06 lakh tonnes, steel manufacturer JSW Steel Ltd has shown an 11 percent growth as compared to the same quarter last year figures.

For the month of March 2009 alone, JSW Steel – the third largest producer of alloy in India – posted crude steel production of 4.56 lakh tones; which marked a 28 percent growth from the year-before figures, and a 39 percent on a chronological basis.

In a press release, JSW Steel said that for the fiscal year 2008-09 on the whole, the company managed to produce
38.64 lakh tonnes of crude steel – indicating a 7 percent growth from the earlier fiscal year figures. The achievement becomes markedly significant considering the fact that the commendable growth have come amid the temporary cuts in November and December in consequence of the global crisis.

With the company reporting a record output – which also included trial production from its newly-commissioned Karnataka blast furnace – its shares on the NSE gained momentum, thereby rising 10.4 percent to Rs. 337.55!

JSW Steel reports highest-ever 4Q output; shares up by 10.4%

JSW Steel LtdReporting its highest-ever fourth-quarter crude steel output figures of 11.06 lakh tonnes, steel manufacturer JSW Steel Ltd has shown an 11 percent growth as compared to the same quarter last year figures.

For the month of March 2009 alone, JSW Steel – the third largest producer of alloy in India – posted crude steel production of 4.56 lakh tones; which marked a 28 percent growth from the year-before figures, and a 39 percent on a chronological basis.

In a press release, JSW Steel said that for the fiscal year 2008-09 on the whole, the company managed to produce
38.64 lakh tonnes of crude steel – indicating a 7 percent growth from the earlier fiscal year figures. The achievement becomes markedly significant considering the fact that the commendable growth have come amid the temporary cuts in November and December in consequence of the global crisis.

With the company reporting a record output – which also included trial production from its newly-commissioned Karnataka blast furnace – its shares on the NSE gained momentum, thereby rising 10.4 percent to Rs. 337.55!