A group of foreign lenders of JSPL are exploring the pros and cons of taking the extreme step of recalling loans adding up to US$ 550 million from the company with the group failing to comply with loan covenants ahead of the repayment schedule that starts next month. Among other things, this is understood to have been triggered by JSPL's inability to service US$ 25 million unsecured loan from a large Japanese bank. A loan recall - or accelerated repayment - puts the pressure on borrowers to pay back the loan at the earliest. Often, it can be a precursor to moving the court to recover loan. (Source - Press Reports)
As per China's top steelmakers' group, the global iron ore market is grossly oversupplied, demand in China is faltering and there's a severe glut of steel. Prices surged by 19% on Monday as Chinese policymakers signaled they're ready to bolster economic growth, boosting the outlook for steel. The Chinese steel association's outlook for a reversal in prices matches with analysis of analysts such as Goldman Sachs Group and Citigroup that say the rally is unsustainable. Steel demand in China, which contracted 5.4% last year, is likely to shrink by an additional 3% this year. (Source – Steelonthenet)
Mills in Russia and Ukraine have raised their offers for billets for April and May production by US$20-40/T from last week. Platts daily billet price assessment jumped by US$ 20/T on Wednesday to US$ 290/T FOB Black Sea, back to the level where it was exactly six months ago. Chinese offers have come down to US$ 290/T FOB for 150mm and US$ 300/T FOB for 130mm, after they peaked at US$ 330-340/T FOB earlier this week. (Source - SBB, London)
US mills are enforcing the US$30/s.T. price increases announced last week, even for the weakest of the major sheet products, hot-rolled coil. The Platts daily HRC price assessment rose to US$ 420-440/s.T. ex-works on Wednesday from US$ 395-420/s.T. Spot prices for CRC are at US$ 600/s.T. minimum. Supply has been tightening, which has helped support prices, but the market could get another “psychological push” on Monday, when the Department of Commerce announces its preliminary HRC anti-dumping determinations. (Source - SBB, London)
The northern province of Hebei plans to shut down 240 out of the 400 steel factories in the area by 2020, as part of the country's efforts to trim overcapacity that has driven prices to their lowest in decades. The province, which churns out nearly a quarter of China's steel output, has banned new projects until it reaches a target of producing 200 MTpa. Small operators with a production capacity of less than 0.3 MTpa will bear the brunt of a campaign to cut the region's dependence on polluting heavy industries. (Source - Metal Junction)
As per China's top steelmakers' group, the global iron ore market is grossly oversupplied, demand in China is faltering and there's a severe glut of steel. Prices surged by 19% on Monday as Chinese policymakers signaled they're ready to bolster economic growth, boosting the outlook for steel. The Chinese steel association's outlook for a reversal in prices matches with analysis of analysts such as Goldman Sachs Group and Citigroup that say the rally is unsustainable. Steel demand in China, which contracted 5.4% last year, is likely to shrink by an additional 3% this year. (Source – Steelonthenet)
Mills in Russia and Ukraine have raised their offers for billets for April and May production by US$20-40/T from last week. Platts daily billet price assessment jumped by US$ 20/T on Wednesday to US$ 290/T FOB Black Sea, back to the level where it was exactly six months ago. Chinese offers have come down to US$ 290/T FOB for 150mm and US$ 300/T FOB for 130mm, after they peaked at US$ 330-340/T FOB earlier this week. (Source - SBB, London)
US mills are enforcing the US$30/s.T. price increases announced last week, even for the weakest of the major sheet products, hot-rolled coil. The Platts daily HRC price assessment rose to US$ 420-440/s.T. ex-works on Wednesday from US$ 395-420/s.T. Spot prices for CRC are at US$ 600/s.T. minimum. Supply has been tightening, which has helped support prices, but the market could get another “psychological push” on Monday, when the Department of Commerce announces its preliminary HRC anti-dumping determinations. (Source - SBB, London)
The northern province of Hebei plans to shut down 240 out of the 400 steel factories in the area by 2020, as part of the country's efforts to trim overcapacity that has driven prices to their lowest in decades. The province, which churns out nearly a quarter of China's steel output, has banned new projects until it reaches a target of producing 200 MTpa. Small operators with a production capacity of less than 0.3 MTpa will bear the brunt of a campaign to cut the region's dependence on polluting heavy industries. (Source - Metal Junction)
Both the blast furnace no.5 and new plate mill in Rourkela Steel Plant (RSP) set up as part of modernization and expansion of RSP have registered the best ever performance in February 2016. New plate mill rolled 29321 tons of plates.
ReplyDeleteRSP recently received a wagon of BRN type for loading and dispatch use.
ReplyDeleteDSP celebrated 45th National Safety Week. The theme was 'Strengthen Safety Movement to Achieve Zero Harm'.
ReplyDeleteA container having illegally brought stainless steel from China was identified at Tughlaqabad depot in Delhi.
ReplyDeleteIndia Ratings and Research foresee a bleak steel scenario for the next fiscal despite infrastructure growth in the country and 'Make in India' plans of government.
ReplyDeleteNiti Aayog is looking at ways to improve steel demand in the country. They are also looking at bank debts of the steel sector. They are likely to submit a report in two months time.
ReplyDeleteFranklin Templeton sells its bonds of Jindal Steel and Power Limited at 25% loss to an undisclosed buyer.
ReplyDeleteChina Iron and Steel Association says that the surge in iron ore prices is unsustainable. Market is grossly oversupplied with iron ore. Analysts say the iron and steel markets have gone berserk and are driven by sentiments and have departed from fundamentals.
ReplyDeleteEssar Steel is to sell its assets to reduce its debts. They have put up slurry pipelines and coke ovens for sale. However, they will miss the RBI's March deadline.
ReplyDeleteThe six mines sold recently under the new mining law are:-
ReplyDelete1) Ghoraburhani-Sagasahi Essar Steel Orissa Iron ore
2) Baghmara Vedanta Chattisgarh Gold
3) Kesla Century Cement Chattisgarh Limestone
4) Hariharpur Lem Bicha I Burnpur Cement Jharkhand Limestone
5) Hariharpur Lem Bicha II Burnpur Cement Jharkhand Limestone