MEsteel.com February 2004 - Newsletter |
In MEsteel's February 2004 News Letter,
- World output rose again in January
- Steel market has gone crazy
- MEsteel : 40 New Members
- New info available on MEsteel
- Steel News In The Middle East.
- Steel Events
World steel output has begun 2004 with a bang.
World crude steel production stood at an estimated 81.2 million metric tons in
January.
Global production increased by 8.4% compared to January 2003.
World production of pig iron was even stronger - rising by 10% above January
2003.
January's output of direct reduced iron surged by 23% year-on-year,
as electric furnace operators around the world scrambled to buy alternatives to
increasingly expensive scrap.
In the Middle East,
Compared to January 2003, crude steel production went up in January 2004 for
Turkey by 6.6%, reaching 1.657.000 tons and for Egypt by 9.4%, reaching 400.000t
On the other hand, Algerian production fell back by 22% to 74.000 tons and
Libyan production fell by 25% to 70.000t.
Production in January 2004, in Iran with 643.000t, Qatar with 90.000t and Saudi
Arabia with 345.000t crude was all similar to production one year ago.
Production in China reached 19.4 mmt in January.
This is up 25.5% on January 2003.
Some other Asian countries, such as India and Taiwan, also increased their
output.
But January production was little changed from year-earlier levels in Japan and
Korea,
possibly reflecting tightness in supplies of raw materials.
In Europe, January crude steel output in the 15 EU member states totaled 13.8m
tons, up 5.7% from the first month of 2003.
January output in the former Soviet Union advanced 7.5% from last year to stand
at 9.2m tons.
In North America January output was little changed from last year.
South American production increased almost 13%.
It's a raging bull market.
Record levels of global steel production have drained all the available supplies
of ferrous raw materials.
Panic reigns, as the shortages and other cost increases are pushing steel prices
up dramatically for hot rolled coil.
Values in March are expected to be at an 8½ year high.
Some mills are putting customers on allocation.
Suppliers cancel or renegotiate orders. At he same time freights are going up
continuously.
It is already clear that figures will go up again next month for second quarter
deliveries and - assuming the Chinese bubble does not burst - in the following
trimester as well.
China continues to drive the market. Although there is growing reluctance to pay
the higher prices, there is little sign of the Asian steel boom abating. Buyers
have recently been paying in excess of $US450 per ton for imported slab, and
$US340 per ton for scrap.
The value of top-grade scrap has risen by more than $US100 per ton since
December. There are reports of electric furnace operators slowing production
rather than pay the current asking price for scrap.
Some mills are quoting prices only for sales ex-stock. They are refusing to
quote forward prices for steel that has yet to be produced, because they do not
know what their input costs will be. The main challenge for steel companies this
year will be to expand revenue, at least in line with increasing raw material
costs. So far, they are managing to pass through some sizeable price rises.
However, there will come a point at which end-users start to resist. This could
come into play first in markets such as construction, where contracts are signed
on tight margins.
Recent price
indications CFR Dubai
40 new steel related companies joined MEsteel in January 2004,
bringing the total to 1656 MEsteel members.
Cyprus
CAE CONSULTANTS, LTD
Hungary
OCEETEE HUNGARY CO. LTD.
Iran
INTERMEDIATRADING
GEL CO LTD
ELECTRO STEEL CO.
ABISUN IND. CO.
ARMAND AB
Jordan
PENTA SPECIALIZED ENGINEERING
Lebanon
TRAMSTEEL SAL
Malta
F. CORDINA & SONS LTD
Pakistan
GOLD STAR ENTERPRISES
AL-NEHA TRADERS
SIDDIQSONS TINPLATE LTD.,
AL-QAMAR STEELS RE-ROLLING MILL
ELECTRONIC BUSINESS SYSTEMS
Qatar
STRUCTURAL STEEL & OIL FIELD SUPPLIES COMPANY ( SOSCO)
Saudi Arabia
DHAHRAN PALACE
INDUSTRIAL COMMODITIES LTD.,
Syria
GLOBAL GENERAL TRADING
Tunisia
GLOBALMETALS
Turkey
BORA METAL INT'L TRD.CO.
OZTURALI METAL SERVICE CENTER
SDL-EUROMOTOR
YILMEN YAPI TIC. LTD.
GARANTI STEEL LTD.
ARSLAN METAL DIS.TIC. MÜM.LTD.STI.
PODIM ABRASIVE LTD
U.A.E
TECHNICAL METAL INDUSTRIAL CO. (TMI)
DUBAI BUILDING MATERIALS SUPPLY CENTRE LLC
DEUTSCHE BABCOCK ENERGIE
AL HATEEB TRADING
PRISMA SPACE FRAME LLC
YIEH CORP. M.E.
NSCC
MEGATE
GALVANIZING SERVICES EST
AL DOKHAN GENERAL TRADING CO. L.L.C.
United Kingdom
CORUS CONSULTING
ARKLEY (UK) LIMITED
Yemen
AL-QUSOOR TRADING & OILFIELD SERVICES
EL-OBADI TRADING AGENCIES
Who are they? What do they buy or sell?
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Pakistan: ECC may okay Pakistan Steel Mills loan guarantees
Turkey: Eregli Iron and Steel: restructuring returns positive results
Jordan: US company to supply 9500t steel pipes to Jordan
Bahrain: Asry carried out 7.500t steelwork in 2003
Pakistan: German firms intend to set up 100KT pipe mill in Pakistan
General: INTERNATIONAL STEEL MARKET ROUNDUP
Iran: Iran to build 17 oil storage tanks
Morocco: Maghreb Steel started additional steel coil galvanizing line
Bahrain: Valbruna Gulf FZE at THE 10Th Middle East Corrosion Conference &
Exhibition
Oman: PSL India books 18.000t API Steel Pipe order for Oman
General: SPECTRE OF HIGHER PRICES STIMULATING STAINLESS MARKET
Read these + more Middle East steel articles in MEsteel news
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50th Irepas Meeting
Dubai, February 29 - March1
10th CRU World Steel Conference
Aldrovandi Palace, Rome, February 29 - March 2
METAPRO 2004
Belgium, March3 - March6
Iraq: Focusing on the Future
Dubai, March2 - March3
BUILDEX 2004
Dammam City, Saudi Arabia, March 7 - March11
Symposium on thermo-mechanical processing of niobium micro-alloyed steel
Cairo/Alexandria, Egypt, March15 - March16
MEED Power & Water
Hilton Abu Dhabi, UAE, March22 - March24
Project Management for Construction Projects
JW Marriott Hotel, Dubai, UAE, March27- March31
Tube 2004
Dusseldorf, Germany - March29 - April2
More details of these and
later events
Your feed back on this letter will be appreciated.
E-mail us your comments to info@mesteel.com
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