Xinhua Weekly World Steel Dynamics (04.04-04.10)

USS Lorain Pipe Plant to invest $ 250 million. United States Steel Corporation (USS) plans to invest hundreds of millions of dollars of steel construction in the state. USS addition will be an unspecified steel investment of about $ 400,000,000 of capital investment in Lorain Pipe Plant (Lorain) also will reach $ 250 million. Speculation that the investment decisions of the USS tube plant growth based on the recent seamless pipe demand. Lorain plant is located about 30 miles west of Cleveland, Ohio, production and construction, oil and gas and industrial seamless pipe production capacity of approximately 780,000 tons, the product line includes oil casing, drill pipe; standard pipe and line pipe; oil pipe coupling. (Man, Culture and the Mysteel International Department)

The good news is, China is opposed to the sound of a substantial price increase has been supported by the European steel industry and the International Steel Association. The face of the monopoly position of the three mines, the Chinese side, the sound does not seem too "thin".

the rest of the world steel mills Nippon Steel, Posco and Chinese steel mills also accelerate the increase in investment in raw materials, has its own stable supply of ore to steel mills for future sustainable development crucial.

iron ore since 2003, for six consecutive years of gains in 2009 due to the end of the global economic downturn gains, the price drop of nearly 30%. Although this year's negotiations have not yet the result, but the spot price has risen about 90 percent, the three mines are also taking advantage of the requirements of more than 90% of the price increase, and to seek more short-term supply contracts on a quarterly basis. Undoubtedly, this will increase the risk of fluctuations of the supply of steel raw materials. Arcelor Mittal said, "We will more frequently face the raw material supply and price volatility, especially iron ore and coking coal, only to position itself in the steel does not appear a necessary mode.

, the world's iron and steel projects around the building plan and the progress

China is the largest importer of iron ore, Chinese steel enterprises can imagine the pressure. In this regard, more than a dozen of the domestic steel enterprise executives signed a letter to the Prime Minister, would like to solve the problem of imported iron ore rose to the national level. They said that as the global economy recovers, demand for steel continue to increase and exacerbate the supply of iron ore pressure on the objective, resulting in iron ore spot price is constantly high. The three mines continue to improve the asking price of iron ore, up 40% was increased to up 90 percent, China's iron and steel enterprises can not afford iron ore such a high asking price, only forced to raise steel prices, the prices to bring cost pressures passed on to downstream steel enterprises.

Second, the ArcelorMittal to invest 600 million U.S. dollars this year to expand iron ore production capacity

International Steel Association on behalf of nearly 180 global steel manufacturers, national and regional steel industry associations and steel research institutes, its members, steel production accounted for about 85 percent of global steel production.

Eurofer and ORGALIME's statement, pointed out, fair and competitive market price of iron ore resources critical to the manufacturing sector sustainable development and the global economy recover from the crisis . Iron ore is the EU's most important industrial chain based on unreasonable pricing led cost-effective access to iron ore, thus affecting the European iron and steel production, will have serious consequences for the whole industry chain, affecting millions of person's employment. They pointed out that: 1. Seaborne iron ore market is highly concentrated, the three mines to control the global maritime market share of nearly 3/4, with the high pricing; BHP Billiton and Rio Tinto joint venture plans will further enhance the degree of concentration of the iron ore industry, the ore supply will only controlled by the two companies; mine has benefited from rising prices in recent years, iron ore up to 50% profit margin; attempt to further sharp price increases not based on a demand basis, is a simple transfer of wealth; price plan is The manufacturing sector is still struggling in the financial crisis and the uncertainty of such a time; prices rose sharply throughout the supply chain will be to the end user to have a serious impact, inevitably damage the fragile recovery of the EU manufacturing industry and the economy. The two organizations urged: fair and reasonable price and to respect the current contract; European governments and institutions to immediately intervene to solve the raw materials market, distort competition, in order to support the long-term development of the industrial value chain in Europe; the European Commission and German antitrust review body - - German Federal Cartel Office will continue to be a full investigation will be a joint venture between BHP Billiton and Rio Tinto plan.

World seaborne iron ore market controlled only by the three suppliers, is a non-competitive market. In fact, Brazil's CVRD control of the Atlantic region, the two mines in Australia actually control in the Pacific. Two Billiton in Western Australia set up a joint venture program will be exacerbated to the degree of concentration in the market. International Steel Association requires a major global market competition, the regulatory authorities to review the iron ore market and the market's three largest manufacturers of market behavior, this non-competitive market for iron ore in order to determine whether the public interest, after all, steel is used in the modern economy all aspects.

European Iron and Steel Industry Alliance (EUROFER) on behalf of the interests of the 60 iron and steel enterprises in the EU and 23 EU member states national steel organization, its crude steel production accounts for nearly 100% of the EU steel production.

, steel prices and ore supplier price war intensified

European Iron and Steel Industry Alliance (Eurofer), the European Engineering Industry Association (ORGALIME), International Steel Association published a properly worded statement condemning the iron ore suppliers to attempt to raise prices 80 % or higher, the behavior of the irreversible price results and ore suppliers may exist expressed concern about the abuse of dominant position.

Pohang in Tianjin. South Korean Pohang Iron and Steel Company began its second steel processing center built in the Tianjin Economic and Technological Development Zone, 120,000 tons annual production capacity of the car plate. The customers are mainly depot-based, such as Toyota Motor Corporation, Tianjin FAW Xiali Co., Ltd. and Great Wall Motor Company. The machining center with the production of high quality automotive sheet capacity, and help companies improve their own logistics services. In 1995, POSCO established in Tianjin, the first steel processing center, with an annual capacity of about 120,000 tons, the center was providing services such as LG and Daewoo Electric Company.

International Steel Association said in a statement, to force the iron ore contract imposed on the global economic recovery have a negative impact. Up to 40 years of the base price system may have it's not perfect, but it can support the long-term relationship between the iron and steel industry with raw material suppliers, enable the mines and long-term investment benefit. The spot price volatility, buyers and sellers will not be in the medium and long term win-win situation, the supplier can only make short-term profit maximization.

the world's largest steel manufacturer ArcelorMittal is committed to the iron ore production capacity to expand and improve self-sufficiency rate, the target is 2015 with an annual output can increase 67% from At present 60 million tons to 100 million tons of ore self-sufficiency rate to 75% -80%. The company plans to invest in iron ore production capacity expansion this year 600 million U.S. dollars, but did not disclose the specific amount of investment in the next five years, the market is estimated that a great number.

ArcelorMittal hope to acquire more mines this year and will accelerate the development of the iron ore project in Liberia and the railways, ports and other infrastructure, and full production for this year, The next year began to export ore. At the same time, also sought to capacity expansion of iron ore mines in Senegal, Mauritania and Guinea.

Vale is not weakness, to the EU Competition Commission to submit relevant documents that do not accept the allegations of the Eurofer European Union competition rules on the company's illegal and asked the European Commission on European iron and steel enterprises to take joint action to investigate whether the current iron ore negotiations. However, the latest news, the European Commission will soon start the investigation of illegal price increases of Brazil's CVRD.

ArcelorMittal by the Jharkhand prospecting license. Recently, India, Jharkhand (Jharkhand,) by the ArcelorMittal steel company in the state Karampada iron ore exploration applications. The decision to strengthen ArcelorMittal's investment confidence, and as soon as possible to carry out the projects, in accordance with the established strategy to take on the local socio-economic and cultural and educational responsibilities. ArcelorMittal Karampada iron ore project is implemented smoothly and will not only improve the ore self-sufficiency rate of the steel mills, can also speed up the forward speed of 500 billion rupees of investment projects. Within the limits prescribed in the exploration license, the reserves of 200 million tons of rich iron ore for new steel mill of ArcelorMittal. In 2005, ArcelorMittal signed with the Jharkhand factories agreement, plans to invest 500 billion rupees to build a joint steel plant with 12 million tons annual capacity, but was delayed due to land and other issues. The face of opposition from the residents of the state Khunti, ArcelorMittal decided to build factories address to the Bokaro The Petarwar region.

Pohang application to build a second steel plant in Vung Tau Province world pie network information , Vietnam Tongnanba. South Korea's POSCO forward Vietnamese Government to apply for permission to sit $ 700 million steel plant in the southern provinces in the country. Said Pohang established in the local factories, and will produce high-grade steel used in the manufacture of ships and aircraftWorld Steel Pipe . Pohang in the manner of a $ 491 million, with an annual capacity of 1.2 million tons of cold rolling mill has been put into operation.

In recent years, the iron ore price negotiations has been much attention, the more problems this year. Ore suppliers are not only substantial price increases took a tough stance, and require the implementation of the annual contract of 40 years of change for quarterly contracts, steel prices is undoubtedly faced with the pressure of rising costs and frequent price fluctuations.

the European engineering industry Association (Orgalime) represents approximately 130 000 enterprises in the mechanical, electrical, electronic and metalworking industries of 22 European countries, and employs about 1,100 people, with an annual output of 2008 amount of about 1.885 trillion euros. It not only represents more than 1/3 of the EU manufacturing output, also on behalf of the 1/3 of the EU manufacturing exports.

Vale construction steel. Brazil's Vale mining company is about to build a steel plant in the Brazilian state of Pará (Pará), the total investment of about $ 3 billion. The steel mill project is scheduled to start in June this year, put into operation is scheduled in the fourth quarter of 2013, designed annual capacity of about 2 million tons.