MEsteel.com April 2004 - Newsletter |
In MEsteel's April 2004 News Letter,
- Middle East Steel Output up by 4.6%
- Market Overview and Prices
- MEsteel : 108 New Members
- New info available on MEsteel
- Steel News In The Middle East.
- Steel Events April - May 2004
World crude steel production stood at an estimated 85.9 million metric tons (mmt)
in March.
Global production increased by 5.9% compared to March 2003 and 8.7% year to date
(YTD).
China performed strongly again in March with production of 21.8 mmt of crude
steel,
so 23 % higher compared to March 2003.
Middle East steel output increased by 4.6%, in the first quarter 2004,
compared to the first
quarter of 2003.
Production in thousands of metric tons
| March 2004 | First Quarter 2004 |
First Quarter |
First quarter % Change '04<->'03 |
|
| Algeria | 91 | 252 | 262 | -37 |
|
Egypt |
380 | 1133 | 1093 | 3.7 |
| Libya | 79 | 216 | 270 | -20.1 |
| Tunisia | 7 | 18 | 33 | -45.5 |
| Turkey | 1771 | 4958 | 4497 | 10.3 |
| Iran | 663 | 1999 | 1874 | 6.7 |
| Qatar | 100 | 279 | 270 | 3.2 |
| Saudia Arabia | 325 | 992 | 981 | 1.0 |
| Middle East | 1088 | 3270 | 3126 | 4.6 |
FLAT PRODUCTS
US transaction prices continue to soar as producers implement a combination of basis price rises and higher surcharges. Material is in short supply. Service centres are limited on the tonnage they can purchase from domestic sources and are having to rely on offshore supplies for a proportion of their material. Fortunately for them, the sky high prices are now attracting more imports. Stock holders can pass on the mill increases without difficulty. End - users are hedge buying to such an extent it is impossible to judge the level of real consumption. This could pose problems later in the year if inventories become overloaded.
Currently, there is a wide range of prices being offered in the Canadian market, not often seen in the past. From the beginning of March, domestic mills introduced a surcharge of $C95 per tonne to compensate for the surging costs of raw materials. Transaction values are described by market players as 'insane'. Steel output is suffering due to a lack of scrap. However, underlying demand is far from strong and service centres are proceeding with extreme caution, lest they get caught with stock they cannot sell on.
The speed of price escalation in China began to slowdown at the end of February. Baosteel announced relatively small increases of RMB 300/500 per tonne, depending on product, for second quarter deliveries. Currently, inventories are high and the pace of business has fallen off. This is putting pressure on distributors to off-load material at discounted resale values. End-users have, in some instances, cut manufacturing output while they wait for lower cost steel. Surging import prices have curtailed the enthusiasm of traders and quantities have recently been reduced.
The supply/demand situation in the Japanese home market is tight, thanks to an expansion in overseas sales and a lack of raw materials. Nevertheless, domestic inventories and stocks of imported strip products at the docks, at end January 2004, increased marginally compared to the previous month.
South Korean domestic demand is expanding. Posco is controlling exports of all products and giving priority to local customers. The company will raise prices for April/June shipments to Japanese clients by ¥5000/10,000 per tonne but, so far, domestic values have been kept well below International levels.
CSC had already prepared Taiwanese buyers for a further round of price advances in the second quarter. These have now been announced and range from $NT2300 to $NT3200 per tonne, depending on product. Supply remains restricted and the steelmaker has agreed to reduce its export allocation from 30 percent of production to 24 percent in 2004.
A combination of good export opportunities, shortages of raw materials and continuing upward pressure on mill input costs has created a very tight supply situation in the EU market. During second quarter settlements, buyers found that prices, and in many instances quantities, were non-negotiable. Delivery lead times are now out to period three. Customers, desperate for material, are placing orders for July/August not knowing what they will have to pay at that time but expecting it to be anything between €30 and €70 per tonne more.
In Poland, manufacturing output carries on improving at a fast pace. Projections for the rest of 2004 are encouraging. Czech/Slovak domestic steel demand remains at a good level as the economy continues to thrive. We have noted some major upward price movements since our February report. Mill order books are full and it has rapidly become a 'sellers market'. Delivery lead times have extended to end May/June but mills are reluctant to accept business because they feel they may get better prices if they delay the deal.
LONG PRODUCTS
Improving demand, plus the need to recover high scrap costs, has driven US and Canadian long product producers to seek more price increases.
There are signals that suggest a slowdown in Chinese construction activity due to the government's efforts to slow the economy. Cancellation of some new projects could offset a traditional seasonal upturn in the North of the country. In the immediate period following our latest research programme, prices have started to decline.
Japanese sales of long products are satisfactory. Developments in the IT industry have created a need for new factories and this is helping building activity. South Korean consumption is steady at a good level. Local mills are focusing on supplying domestic requirements. With raw material in short supply and expenditure so high, many Taiwanese producers have been forced to reduce output. Prices have, once more, moved sharply upwards. However, demand is expected to diminish in the medium term.
EU mills
continue to try to expand supplementary charges due to significant increases in
transport, energy and raw materials. Several steelmakers, believing that these
higher input costs cannot be transferred to the market-place, have cut
production. Steel prices have escalated. Buyers report values climbing virtually
every day. Fears are growing that construction activity might be harmed through
a shortage of bars/sections and an inability on the part of contractors to
obtain steel at workable prices. Despite predictions to the contrary, Polish
building demand has, so far, failed to recover. Nevertheless, steel values
continue to show positive movements. The Czech Republic is enjoying high rates
of growth in construction output. Demand for long products is holding up well.
108 new steel related companies joined MEsteel in March 2004,
bringing the total to 1868 MEsteel members.
Bahrain
AL SHOMOOS TRADING CENTRE BAHRAIN
Belgium
MAISON MATHIEU N.V.
Cyprus
G.GEORGIOU MOTORS LTD
Egypt
ALKAREMY FOR METALS
DSD FERROMETALCO
ETCO INTERNATIONAL TRADE
GALVA METAL
HASSAN ALLAM SONS
IBRAMAR HOLDING GROUP
INVAP
NASSAR GROUP COMPANY
SIGMA FOR INT'L SUPPLIES
SPEED TRADE
TAWAKOL METAL INDUSTRIES
ZU EL-NORAIN GROUP.
Greece
A. KALPINIS - N. SIMOS S.A.
India
MAILAM INDIA LIMITED
Iran
BARCHINKAR
BEHPAD(BEHINE PARDAZ E DAMAVAND
FAR SUN CONTROL
FARTASH TRADE DEVELOPMENT
KAMKANCO
PAYA STEEL
RELIABILITY
SHIMBAR CO.
SK NETWORKS CO.,LTD.
TUCHIN CO.
Iraq
ALFARAZDAK CO.
Italy
OCEVI IMPIANTI S.R.L.
Jordan
ADELTAYYEM
ARAB MANUFACTURERS CO. LTD.
BAYATI TRADING CO.
JORDAN EST FOR OVERHEAD CRANES
MULTI ELECTROMECHANICAL CO.
YUSRAN TRADING EST
Kuwait
ALMAILAM
AL-SABIH ENGG. & TRDG. CO. LTD
QUARTZMANAGT
TRANSKUWAIT
Lebanon
BOURY MFG. & TRDG. CO. LTD
ITANI TRANSPORT COMPANY
Libya
ALSHIC DLC SHIPPING
ASSAFA DEV. COMPANY
ENGINEERING INDUSTRIES COMPANY
Pakistan
ALPHONSO CORPORATION PVT LTD
AMS TRADERS
CASCO (PVT) LTD
MALIK IMPEX
NAMORUBE PVT LTD
NASIM ENGINEERING CO.
STANDARD AGENCIES
STAR CORPORATION
VARIOLINE INTERCOOL PAKISTAN
WESTEX TRADING
Qatar
DRABZIN
MIDDLE EAST BUILDING MATERIALS CO WLL
QATAR STEEL CO
Saudi Arabia
AL BABTAIN MDS COMPANY
AL KHODARI SONS CO.
AL MADINAH MOTATAWERAH TRADING EST
AL YAMAMAH CO. FOR REINFORCING STEEL BARS
AL-BABTAIN POWER & TELECOMMUNICATION CO.
KHALIL ABDUL WAHAB
MUSAIRIEY METALLIC INDUSTRIES CO.
SAUDI STEEL PIPE CO. LTD
SHAABANSTEEL
Sudan
SUDANESE MALYSIAN STEEL FACTORY
UNTED STEEL PRODUCTS FACTORY
Syria
JATAL.CO
KHALED AL-RAJAB TRADING & CONTRACTING
SASOUN FOR COMMERCIAL SERVICES (SCS)
Tunisia
ETABLISSEMENT MHIRSI DES ABRASIFS
SOCIETE DE GALVANISATION A CHAUD
Turkey
BILTEK CO INC
COSKUN METAL DIS TIC. LTD. STI
DEMA IÇ DIS TIC LTD STI
EKINCILER FORIGEN TRADE INC.
EMEK METAL ÇELIK KAPI STEEL DOORS
ERTAN SAC
GERPA TRADING
IDIL INT'L LTD.
LINKAS DIS TIC. LTD. STI.
ONUR SHIPPING
SENIRON
U.A.E.
ADAN BRAH TRADING LLC
AL JEBAL METALS TR. LLC
AL MAKAASEB GENERAL TRADING CO LLC DUBAI
AL NABOODAH LAING O'ROURKE LLC
ALATOOBI INTERNATIONAL TRADING LLC
ALGHANEM CONT.EST
AWOSMAN
BANIYAS VALLEY BLD MTR TRADING L.L.C
BASSIT TRADING
C&B BUILDING MATERIALS TRADING L.L.C
DORAN INTERNATIONAL
DS GULF INTERNATIONAL
GOLDEN EYE TRADING CO.
HANNAN MOTI
KRS OILFIELD EQUIPMENT TRADING FZE
MARINE ENGG. & SERVICES CO. L.L.C.
MILAD ENGINEERING CONSTRUCTION CO.
MIRAJKAR TRADING
MISR EMIRATES TRADING AND EXPORTING ( METREX)
STEEL CRAFT
TRINITY GENERAL TRADING L.L.C. - INDUSTRIAL STEEL SUPPLY DIVISION
United States
AMERICAN EAGLE STEEL CORP.
Yemen
MACYEMEN INVESTMENTS
NIZAR TECHNICAL SERVICES
Who are they? What do they buy or sell?
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MEsteel
provides you with ample technical and practical info, in their various
information
pages and keeps adding new content for and with you all the time.
This month we added in
Products Info:
ASTM Norms for
Carbon
Steel - Cold Rolled Coils -
Cold-Rolled Carbon Steel Strip
Stainless
Steel - Tubes Seamless -
and Welded Austenitic Stainless Steel Tubing
Stainless
Steel -
Fasteners - ASTM
F 593 Stainless Steel Bolts, Hex Cap Screws, and Studs
Fasteners
Steel Anchor Bolts
F16
Fastener Specifications
Carbon
and Alloy Steel Externally Threaded Metric Fasteners
Heat
Treated Alloy Steel Structural Bolts
Structural Steel Bolts, Heat Treated
Carbon
Steel Bolts and Studs
Activity pages
New pages about
Pre-Painted
Coils
Types
of Paints for Coil Coating
Rollforming
of Prepainted Coils
Powder
Coating
Good
Practice Guidelines for Rollforming
Coil
Coating Process And Advantages
Cladding
And Roofing
World
Steel Exports, Analysis By Product, 1997 - 2001
Crude
Steel Production By Process, 2002
Apparent
Steel Consumption, 1995 to 2002
Steel
production and consumption, 1991 and 2001
Major
Importers and Exporters of Steel 2001
Major Steel
Producing Countries in 2001 - 2002
Largest
steel producing companies in 2001 - 2002
Tunisian
Steel Imports of Iron And Steel Products in 2003
Tunisian
Steel Exports of Iron And Steel Products in 2003
Pakistan
Steel Exports / Imports of Iron And Steel Products in 2002-2004
Morocco
Steel Imports of Iron And Steel Products in 2002
Morocco Steel Exports of Iron And Steel Products in 2002
+
Top Rankings of MEsteel with
Major Search Engines
Sudan: Petrodar awards US$198mn spiral welded steel pipe order to PSL
Iran: Steel Price Hikes Raises Gas Pipeline Costs
Pakistan: PSM to achieve 3mt production target
Saudi Arabia: Steel wire manufacturer Maadaniyah Q1 net income up 117%
UAE: Chinese firm to supply Dubai ports $217.2 million worth of cranes
UAE: Saipem wins contract to build UAE's Dolphin gas pipelines
Iran: Ahvaz to Build Steel Pipe Mill in cooperation with Europipe
Iran: Epoxy Plant to be established in Ahvaz Steel Pipe
Iran: Iran Reduces Hot Rolled Coil Duty to 10%
UAE: Dubai records 3.53. mio tons imports of steel in 2003
Saudi Arabia: Saudi cut import tariff on reinforced steel from 20 to 5 percent
Iran: 3 Major Projects to Be Implemented at Mobarakeh Steel Complex
Saudi Arabia: Saudi Arabian Railway Expansion Due
Iran: Raw Steel Production to Hit 11.4m Tons This Year
Egypt: Egyptian Steel companies help to lead Bourse to 4-Year High
Qatar: GIIC in 5 million tons DRI supply pact with Qasco
Saudi Arabia: New 450KT steel billets plant for Al Azizia - Jeddah
Pakistan: Pakistan Steel Mills to import 100,000 tonnes of billets
Read these + many more Middle East steel articles on MEsteel news
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1st international building & construction expo libya 2004
Tripoli international fair ground, Libya
2004 May3 - May7
Tehran International Conference on Refractories
Tehran, Iran
2004 May4 - May6
Metal Asia 2004, International Machine Tool and Metalworking Exhibition
MINES International Exhibition Centre Kuala Lumpur
2004 May5 - May9
3T 2004, International Metal Processing, Mould and Industrial Automation Fair
Kulturpark Expo Center, Izmir, Turkey
2004 May6 - May9
Project Lebanon 2004 Construction Technology, Building Materials & Equipment
Beirut, Lebanon
2004 May11 - May15
PRESSURE VESSEL DESIGN AND MAINTENANCE
Dubai, UAE
2004 May29 - June2
2nd China International Coking Technology & Coke Market Congress 2004
Beijing, China
2004 June22 - June23
US$ 1490.00 - DISCOUNT of 10 % for MEsteel members
STEELFAB Machinery, equipment and consumables for the steel fabrication
industry
Sharjah, UAE
2004 October10 - October12 - Special DISCOUNT for
MEsteel members
Details of these and other events
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