September U.S. steel imports from China increased significantly

U.S. Commerce Department released data show, September 2013 U.S. imports 2.505 million tons of steel, month to month dropped by 4.1%, compared to last year growth of 6.1%. 1-9 months total steel imports 21,674,000 tons, year on year drop 7%.

From species to see, compared with last year, the growth rate of rebar is biggest, reached 155 percent, hot rolled growth of 24.4%, galvanized sheet increased by 11.9%, but the steel pipe, wire and plate has a larger decline. Compared with August, there are larger increase in rebar and plate, steel pipe, wire rod and cold volumes has larger decline. From import source countries and regions to see, compared to last year, there are larger imports growth from Central and South America, Japan, China and Turkey, and imports from the CIS and EU decreased significantly. Compared with last month, imported from Japan, China and Turkey imports increased significantly, from North America, South America, South Korea and the CIS decreased greatly. September U.S. imports 176,500 tons of steel from China, month to month growth of 76.88%, compared to last year increased by 89.4%.

The latest statistics show that until to October 25, 2013, October U.S. steel import license number is 127 million tons, which much lower than the same period value in September, U.S. steel imports is expected to significantly decrease in October.

Japan's crude steel output of this year hit a five years record high

According to the latest forecast of the Japanese Ministry of Economy, Japan's crude steel output of this year is expected to increase to 111 million tons, compared to last year growth of 3.1%, and hit a five-year record high. The main reason is government to increase infrastructure spending and housing construction.

Recently, the Japanese Prime Minister expressed, April of next year the consumption tax from the current 5% is raised to 8%. At the same time, increasing infrastructure spending to stimulate the central bank to take more forceful measures to end deflation. Since taking office last December, Japanese Prime Minister funding at least 10 trillion yen for infrastructure upgrades. In addition, the Japanese construction continues to increase, including the Northeast reconstruction projects after the earthquake in March 2011.

Benefited from strong demand for steel and depreciation of the yen, Japanese steel share price and profit rose, including Japan's largest steel producer NSSC Company and JFE Steel Corporation. Since the end of last year, the Japanese yen against the U.S. dollar fell by about 20%. Depreciation of the yen not only prevented imported resources from Korea and China etc. Asian countries, while helping Japanese manufacturing regain competitiveness in export markets, causing domestic steel manufacturers work hard to increase production.

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India's "12th Five Year Plan" steel production capacity difficult to complete

Recently, foreign media reports, Due to the current economic slowdown makes the steel mills in India postponed to expand production capacity, meanwhile the Indian government delays in the approval of new projects, will make India's steel industry difficult to achieve previous setting of the "12th Five Year Plan" steel capacity growth targets.

Indian government's "Twelve Five" (2012 - 2017) plan say that, Indian steel production capacity from the current 90 million tons increase to 142.3 million tons in 2017.

India, a securities analyst said that it is clear that India can’t achieve steel production capacity of 142 million tons of goals in 2017. The vast majority of Indian domestic steel companies have delayed the expansion of production capacity, estimated that India's steel production capacity can‘t exceed 100 million tons to 1.05 million tons.

India's "Twelfth Five-Year Plan" relevant documents show that with India's gross domestic product (GDP) to maintain growth of 9%, steel consumption is expected to grow by 10.3%, on this basis the 2017 Indian steel production target is set at 142.3 million tons. India-related industry sources said that the target is indeed high, because this data is established on sustained GDP growth of 8% in the basis. According to Rao, India Commercial Bank chief economist introduces the next three years, the average growth rate of India's GDP expected to be 6%.

Due to steel construction project approval delays, as well as environmental permit applications and other unfavorable factors effect, India's steel production capacity increase has emerged signs of deceleration. According to analyst introduced, like Tata Steel, JSW Steel and Steel Authority of India and other Indian steel companies are also facing the problem of delays and postponement. Although India's steel companies have announced before the "twelfth five" increase71 million tons of steel production capacity, however, due to the lack of project delays or regulatory permits, this will be the uncertainty of future production capacity.

Indian steel prices may rise

Future steel prices rose mainly due to:

First, the Indian government approved a series of infrastructure projects that will lead to rising steel demand in the coming months.

Second, in October, the Indian state-owned bank announced that it would cut 0.20 percent interest on the car, within three years to buy a new car the lending rate is 10.45% -10.75%. India's largest car manufacturer Maruti Suzuki India has announced its October car sales rose 1.91 percent, reaching 105,087 units, and according to the analysis in the next few months, sales will continue to rise.

Third, the Indian government has injected 140 billion rupees to state-owned banks, This will encourage banks to lend in the coming festive season to stimulate consumers to buy cars and consumer durables.

Finally, the Indian rainy season ends, the new construction activity will increase.

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Rio Tinto sell Australia coal mine share

According to British media reports, Australian mining company Rio Tinto will sell its 50.1% share of Clermont coal mine in Australia to Swiss commodities giant Glencore Xstrata and Japan's Sumitomo, transaction amount of $ 1.02 billion.

Rio Tinto said in a public statement, in the process of the company continues to optimize the investment combination, the transaction will reflect shareholders' investments. Rio Tinto said after the sale of 50.1% of the Clermont coal mine shares, company will be committed to the long-term development of other mining in central Queensland region.

So far this year, Rio Tinto has announced that it has completed the divestiture of the total size of $ 2.92 billion. In addition to the announces sale of Clermont Coal Mine shares, Rio Tinto plans to sell other assets including, to China Molybdenum Group Co., Ltd. sale Australia North Parkes Copper Gold Holding stock; Selling South Africa's largest copper mine Palabora more than half of equity and transfer States nickel-copper project in the United to Lundin Mining Corporation of Canada.

In addition, because of the sharp drop in demand from China, Rio Tinto announced the first-half year profit fell 71%, company had to cut costs in various ways.

JFE to the Gulf of Mexico ultra-deep gas development project supply pipe

Japan's JFE Steel Corporation said, it has supplied 1,900 tons thick-walled tube for the U.S. Natural Resources developer Freeport-McMoRan Oil & Gas LLC.

These thick-walled tubes produced by JFE Steel Corporation Chita plant, maximum wall thickness of 1.35 inches, OD 7-9 inches, which is high corrosion resistance seamless steel pipe and use for Gulf of Mexico ultra-deep oil and gas development projects. Because of poor using environment, this product requires thicker than conventional steel, better corrosion resistance and required to resist ultra-low temperature of minus 230 degrees Celsius.

JFE Steel Corporation said the success of the project may increase the use of ultra-deep oil pipes.

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Greenland end mining ban, China will participate in the island's largest iron ore project

October 26, Greenland Parliament voted to end radioactive minerals mining ban that has been performed 25 years, this could detonate foreign investment enthusiasm on local abundant uranium, thorium, rare earths etc. mineral resources. In addition, London Mining Plc teamed up with Chinese companies has also achieved a major breakthrough of Iron ore mining on Greenland.

Insiders pointed out that further opening of Greenland mining market, the future will attract more Chinese and Australian investors to invest.

Largest iron ore project progress difficult

London Mining Plc confirmed obtain a 30-year exclusive mining iron ore contracts In the Greenland capital, Nuuk, 150 km north of the ice sheet, and to pay up to 5% of sales of royalties. This is called "Isua" of iron ore mining project is expected to be mined 15 million tons of open-pit iron, required an investment of $ 2.3 billion, which is the largest investment project in local history, total investments exceed Greenland's $ 2 billion of annual GDP.

Minister of Industry and Mining in Greenland Gierke Gao said, approved iron ore mining project was the Greenland moment in history, it is the biggest local commercial projects and will have an extremely positive impact on employment and income.

London Mining Plc is a UK listed company, Shareholders mainly composed by small companies of Australia and Canada, main business is focused on mineral exploration, development and operation, many new projects require capitalized supporters to cooperate. London Mining Plc as early as in 2010 was planned to cooperate with China, to reduce costs, the initial three-year of construction project needed 3,000 workers will come from China. Greenland capital Nuuk Parliament last December also exclusively pass a special legal work terms, which allow companies to pay the wage of foreign workers is not necessarily limited to local minimum wage. Local opposition parties and Copenhagen unions criticize that this is not only Greenland's natural resources are being plundered by China companies, but also open the door to greet cheap Chinese labor. After the passage of this bill has aroused great repercussion, In March, Prime Minister of the Government of Greenland was forced to resign, the progress of the project was also stalled.

Greenland is one of the least populated places on earth, only 56,000 inhabitants, although to achieve autonomy in 2009, but so far the government about 60% of revenue still offered by Danish. Poor infrastructure in Greenland, fishing is the local absolute export pillar industries. The Government has been hoping for greater autonomy and eventual independence, trying to walk a road of development and utilization of natural resources, through the development of mineral and petroleum industry to reduce dependence on Denmark.

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Russian metallurgical industry development status

Metallurgical industry is the basic sector of Russian industry. In 2011, the Russian metallurgical industry employment was nearly 1.3 million, 80% of enterprises are belonged to urban construction fields. Look from the production, metallurgical industry (ferrous and nonferrous) output in Russia's GDP accounted for 9%, exports accounted for 11.6%, industrial sector accounted for 5% of employees, taxes accounted for 5% of the budget.

From an international comparative perspective, the Russian steel output ranked fifth in the world, (only behind to China, Japan, the U.S. and India), iron ore production is also fifth in the world, steel pipe production is third in the world. Exports of metallurgical products is second in the world (only behind to China and Japan), aluminum production is second in the world, titanium production is second too, aluminum exports is first, nickel production and exports are first in the world.

Metallurgical Industrial Structure

Russian metallurgical industry includes black, non-ferrous minerals and non-metallic mineral mining; Iron, steel, rolled, steel, iron alloy, refractory materials, coke, aluminum, copper, rare metals; ferrous metals, alloy production and processing of semiconductors; Scrap, scrap metal processing and certain related chemical products. In addition, the metallurgical industry contains a large supplementary enterprises, scientific research and design organizations.

Metallurgical industrial enterprises for nearly eight years achieves vertical integration, reducing the industry's competitive risks in the domestic market, improved investment policies to ensure the safety of their raw materials industries. In recent years, metallurgical industrial enterprises actively carry out services in the field of metal processing and metallurgical manufactures.

The overall commentary of industry development of the metallurgical industry

In 2004, the Russian finished steel production was 53.7 million tons, 29.8 million tons of domestic consumption; 2011, finished steel production increased by 10% (59 million tons), domestic consumption grew by 25.8% (37.5 million tons); steel production increased by 60% (9.6 million tons), domestic consumption grew by 78 percent (10.9 million tons).

Russia's domestic non-ferrous metal products are mainly provided by the Chinese. 2011, the domestic demand for aluminum reached 875,000 tons, compared with 2004 growth of 148.6%. Domestic demand for refined copper in 2011 reached 300,000 tons, an increase of 107% compared to 2004.

The Russian government's anti-crisis measures in preventing the decline in production capacity of metallurgical enterprises have played a very good effect, which ensure the number of jobs, and enable investment projects to be continued before crisis. In recent years, the metallurgical industry upgrading of fixed assets become one of the main factors of the industry to successfully overcome the financial crisis, also make high-tech products with high added value production has been enhanced.

Over the past decade, metallurgical industry used for the upgrading, transformation and expansion of production investments totaled more than 1.6 trillion rubles. Currently, Russian metallurgical enterprises large equipment of wear rate does not exceed 50%, which makes the industry more flexibility to respond to negative changes in the external market environment.

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