Xinhua Weekly World Steel Dynamics (04.11-04.17)

Japan, Korea steel mills seeking to boycott iron ore prices. South Korean steel mills plans to invite the Japanese steel mills to jointly oppose the substantial price increase in acts of BHP Billiton, CVRD ore and coking coal suppliers and mining companies to switch to short-term pricing model expressed concern. The Japan Iron and Steel Association, Korea Iron and Steel Association will hold a meeting in Tokyo and reached a consensus. The talks will also focus on BHP Billiton and Rio Tinto intends to set up a joint venture company, adding that the merger of Western Australia iron ore business plan would impede competition.

this year's global steel mills will undoubtedly have to face significant upward pressure on costs. Vale and BHP Billiton claims has been reached with most of the major users of quarterly ore price agreement. Japanese steel mills and POSCO acceptable price than last year rose about 90 percent, BHP Billiton and the main users in Asia price inflation reached 99.7%. In addition, Japan, South Korean steel mills and coking coal suppliers to reach the second quarter of hard coking coal prices rose 55 percent to $ 200 / ton (FOB). Face of sharp price increases in raw material suppliers, the European steel industry has asked relevant agencies to investigate iron ore monopoly market, Eurofer and the International Steel Association have clearly expressed their opposition of the spot price of iron ore system, or the results of the irreversible and ore The supplier may be present expressed concern about the abuse of dominant position.

the past six months, despite weak demand, but ArcelorMittal, ThyssenKrupp and VAI, SARS Quetta consecutive rounds of price increases, promoting The average price of European hot rolled coil from $ 561 / ton in the fourth quarter of 2009 to $ 680 / t. European hot rolled coil production costs increased by about 140-150 U.S. dollars / ton, steel prices rose about $ 130 / t. German Steel Federation and the German metal union, said if the iron ore and coking coal control providers as requirements for a substantial price increase, the German steel industry's raw material costs will increase more than 3 billion euros (4.02 billion U.S. dollars). Similarly, the ex-factory price of hot rolled from the end of the fourth quarter of last year's $ 600 / t up to 727 U.S. dollars / ton, AK Steel Corporation and Nucor recently announced price increases again. Asian steel mills Nippon Steel and China's Baosteel price increase is a foregone conclusion, Pohang are closely watching the international contract price of raw materials and changes in demand and the flexibility to price increases. Indian steel mills have been a series of price increases several times, and its flat and long products prices raised by 5% -7%. Allegedly, the only ore and coking coal prices, the cost of the steel mills of India by about 150-200 U.S. dollars / ton. Despite the increased demand for all but the Asian steel mills if the increased costs onto users a certain degree of difficulty.

, steel prices to strengthen cooperation to enhance competitiveness

Steel Authority of India intends to form a joint venture with POSCO and Kobe Steel. The state-owned enterprises in India Steel Authority of India (SAIL), Posco of South Korea and Japan's Kobe Steel Company is to consult on matters of technical cooperation. In order to ensure that the company has competitive SAIL is studying the possibility of the formation of technology alliances with POSCO and Kobe Steel, such as Finex and ITMK3, new ironmaking technology in order to obtain from the latter two companies. The final technology selection and the formation of the details of the joint venture will depend on the progress of technical and economic feasibility, and the necessary approval.

JFE Yantai East China Sea sheet signed cooperation. Japan JFE Shoji Co., Ltd. and China sheet manufacturer Yantai East China Sea sheet company reached a cooperation agreement. Funded by Japan's JFE Shoji Co., Ltd. registered capital of 5% of the equity to buy Sheet Co., Ltd. in Yantai East China Sea, the initial capital contributions amounted to $ 1,500,000. Since the JFE will continue to increase its investment in the East China Sea sheet (total $ 50 million), until you have the sheet equity share in the East China Sea to 33%. JFE Shoji Co., Ltd. The sheet with the East China Sea cooperation will not only enhance the competitiveness of the East China Sea sheet, expand the local market, but also conducive to Yantai economic development, so that the the Yantai steel industry production and related industries took to the road of international development.

benefit from the increase in demand for automotive, home appliances, as well as Europe, the U.S World Pipe network informed. steel distributors and users make up the library with the recent global steel prices continued to rise indicate, so far as steel costs passed on relatively smooth, but the problem is the steel mills there is much room for price increases World Steel Pipe News , end users can accept this price. The past three months, the profits of the steel mill has been in recovery, the procurement price of iron ore is relatively low. Expected second quarter steel capacity to absorb the rising cost of raw materials, but after the third quarter of facing the pressure of the narrowing of margins.

Second, the increase in raw material costs can not all be passed on to users

Nucor and Mitsui jointly developed the North American steel processing and related operations. America's largest electric furnace steel company Nucor and the major Japanese trading company Mitsui & Co. will jointly set up a joint venture to jointly develop the North American steel processing and steel-related projects, expansion of the appliance, automotive, and construction steel market in the world business. Steel Technologies, Inc. Under the agreement, Nucor will acquire a 50% stake in Mitsui USA, that is, through the establishment of a joint venture called NuMit, Nucor will acquire Mitsui 100% owned 50% shares. Mitsui has a strong overseas business, Nucor has advanced production technology, the two companies will give full play to their strengths. This cooperation is the most strategic investment Nucor two years, meaningful acquisitions and new growth platforms. (Man, Culture and the Mysteel International Department)

three miners escape the suspicion of price fixing investigation

three iron ore suppliers, has caused great concern for countries in Europe, Asia, iron and steel enterprises. European Steel Industry Alliance (Eurofer), the European Engineering Industry Association (ORGALIME), International Steel Association have issued a properly worded statement, condemned the iron ore suppliers to try to price behavior of 80% or higher, and irreversible price results and ore suppliers there may be abuse of dominant position expressed concern. Ministry of Commerce of China Anti-Monopoly Service is studying the issue of monopoly of the three iron ore suppliers.

iron ore, coking coal and scrap costs increased by the pain to the iron and steel enterprises will appear in the third quarter. Uncertainty will hinder the economic outlook steel mills increased costs onto users, steel prices can not be consistent with the raw material price increases. Unless the economy has entered a mature stage of recovery, or by continuously increases will increase the cost of raw materials all pass on a certain degree of difficulty. Especially in Europe, the United States, three quarter fill the library is likely to slow, the end-user demand also failed to significantly restore. The increase in Asian mills, steel sales will be rising costs and the financial crunch, swallow, and to offset the strong demand of home appliance and automotive industries. Although the profitability of the steel mills is solid, but the current procurement can not be sustained, long-term there are still many uncertainties. In addition, the price of iron ore, coking coal prices changed quarter also increased the uncertainty of the business of the desire for a stable steel prices.

recently, Eurofer also urged EU regulators to prevent the iron ore market, unfair competition and excessive pricing, saying would not be conducive to economic recovery in Europe. At the same time, the Eurofer urged the Office of the European Commission and the German Federal competition law as due diligence competition regulators to continue a thorough review of the BHP Billiton and Rio Tinto's proposal to establish a joint venture.