Iron Ore News
Iron Ore Transaction Report
CCCMC Reference Price
Iron Ore Foreign Quotes
Freight Rate (India-China)
Bunker Fuel Oil Prices
China Iron Ore Stocks

Ferroalloy News
Cr Ore Spot Prices
Mn Ore Spot Prices
Cr Ore Foreign Quotes
China Cr Ore Stocks
China Mn Ore Stocks
China Laterite-nickel Ore Stocks

Metal Scrap & Pig Iron News
Steelmakers Price Adjustments
Steel Scrap Price Summary

Steel News
HRB400 Rebar Price Summary
Medium Plate Price Summary
Shipbuilding Plate Price Summary
HR Coil/Plate Price Summary
CR Coil/Plate Price Summary
China Steel Stocks

Stainless Steel News
Stainless Steel Prices
Ni Prices

BHP Iron Ore Shipment and Output Hit Record High
Soaring Iron Ore Shipment Drags Great Lakes Gradually out of the Recession
Cost Overrun Postpones Citic's Australian Iron ore Exports
China Iron Ore Output Increase by 21.6% YoY in 2010
Update: 22 Companies to Bid for Afghanistan Hajigak Iron Mines
Indian Fines Continue Surging on Imported Iron Ore Market
China Iron Ore Market Prices Set to Rise
Daily Analysis on Domestic Iron Ore Market on Jan 19, 2011
UMETAL: Dry Bulk Market Keeps Going Down, Soon to Touch Bottom
Umetal: Rising Steel Market Doesn't Boost the Stable Iron Ore Market
Container Growth Rate to Slow A Half in 2011
Container Shipping Capacity to Grow 8.8% in 2011
Lloyd's Register's Market in China and Korea Greatly Enlarged in 2010
BDI Could Touch Bottom Soon
Imported Iron Ore Prices Hold Firm in Tangshan and Fangchenggang
Umetal: Imported Ore Prices Up on Tight Resources, Market Expected to Soar
Imported Iron Ore Prices Maintain Small

IRON ORE PRICES

China's Report of Imported Iron Ore Transaction on Jan 20, 2011

CCCMC Reference Price for Indian Iron Ore Fines (FE63.5)

Foreign Quotes for Indian Iron Ore on Jan 20, 2011

Country	Product	% Grade	CFR ($/T)	FOB ($/T)	Port of Loading	Remark
India	Iron Ore Fines	63.5/63	186-188	168-170	Chennai/Paradip	Moisture: 8%; To be loaded at one Indian port
India	Iron Ore Fines	61/60	166-168	148-150	Chennai/Paradip	Moisture: 8%; To be loaded at one Indian port
India	Iron Ore Fines	63/62	180-182	162-164	Chennai/Paradip	Moisture: 8%; To be loaded at one Indian port
India	Iron Ore Fines	62/61	174-176	156-158	Chennai/Paradip	Moisture: 8%; To be loaded at one Indian port
India	Iron Ore Fines	60/59	158-160	140-142	Chennai/Paradip	Moisture: 8%; To be loaded at one Indian port
India	Iron Ore Fines	59/58	151-153	131-133	Goa/Mangalore	Moisture: 8%; To be loaded at one Indian port
India	Iron Ore Fines	58/57	142-144	122-124	Goa/Mangalore	Moisture: 8%; To be loaded at one Indian port; To be unloaded at Chinese Northern ports

Daily Bunker Fuel Oil Prices in Singapore on Jan 19, 2011

IFO380 (heavy oil)		IFO180 (heavy oil)		MDO( light oil )
Price (US$/tonne)	Change (US$/tonne)	Price (US$/tonne)	Change (US$/tonne)	Price (US$/tonne)	Change (US$/tonne)
546.5	+5	557	+4	815	+2

IRON ORE STOCKS

Iron Ore In Stock of Major China Ports (Update: Jan 14, 2011)

Port Congestion:

(Number of Capesize vessels waiting for berth)

Freezing Weather Impacted the Cr Market
Traders Complain no Profits in Mn Ore Market
Cr Ore Market Calms down
Umetal: FeSi Market to Keep Stable with Subdued Inquiry
Umetal: FeMo Prices Stable with Uptrend on Uptight Spot
Enquires of Mn Ore Rise in North China

FERROALLOY PRICES

China's Sales Price of Imported Chrome Ore at Main China Ports on Jan 20, 2011

China's Sales Price of Imported Manganese Ore at Main China Ports on Jan 20, 2011

Overseas Offers of Chrome Ore CIF China on Jan 20, 2011

METAL ORE STOCKS

Chrome Ore In Stock of Major China Ports (Update: Jan 17, 2011)

Manganese Ore In Stock of Major China Ports (Update: Jan 17, 2011)

Laterite-nickel In Stock of Major China Ports (Update: Jan 14, 2010)

China 2010 Pig Iron Output Ups 7.4%
Daily Analysis on Domestic Steel Scrap Market on Jan 19, 2011
Umetal: Scrap Prices Up Further in Hebei
Umetal: Note on Steel Mills in East China
Umetal: Scrap Prices in Hunan to Remain Stable before the Spring Festival
Daily Analysis on Domestic Pig Iron Market on Jan 19, 2011
Umetal: Pig Iron Market Steady in East China

STEELMAKERS PRICE ADJUSTMENTS

TPCO Adjusted Scrap Buying Prices of on Jan 18, 2011

Adjustment Information of Scrap Buying Prices of Lingyuan Iron & Steel Group Co.on Jan 19, 2011

Adjustment Information of Scrap Buying Prices of WISCO on Jan 19, 2011

STEEL SCRAP PRICE SUMMARY

Summarization of Purchase Prices for Steel Scrap in Major Cities on Jan 20, 2011

China: Nanjing Steel Adjusts Partial Prices on Jan 20
China: Square Billet Prices Stabilize at a High Level in Jiangsu
Umetal: Steel Billet Prices See Another Significant Rise
Singapore: Rising Costs Push up Rebar Prices
MSCI: Steel Inventory Sees a Significant Increase MoM
China: Benxi Steel Unveils Steel Prices for Feb 2011
China: JICSO Adjusts Construction Steel Prices in Xi'an Market on Jan 20
NBS: Average Daily Production of Crude Steel Drops to 1.6619 MT in Dec
China: JICSO Lifts Flat Product Prices in Xi'an Market on Jan 20
China: Liuzhou Steel Raises Partial Steel EXW Prices on Jan 20
China: Wuhan Steel to Lift Non-steel Share to 30% by the End of "12th Five-year" Period
China: Global Demand Rise Gives China an Opportunity to Increase Export
Tokyo Steel to Incur Losses for the 2nd Straight Year

STEEL PRICE SUMMARY

Summarization of HRB400 Rebar Prices in Major Cities of China on Jan 20, 2011

UMETAL-CHINA, According to the statistics by Umetal, the average price of HRB400Ф20mm rebar stands at RMB4,946/tonne in 24 major cities of China today, up RMB6/tonne. The lowest price: RMB4,720/tonne in Taiyuan, the highest price: RMB5,200/tonne in Guangzhou.

The table below shows more details. (Unit: RMB/tonne)

US$ 1=RMB 6.5825

Summarization of Medium Plate Prices in Major Cities of China on Jan 20, 2011

UMETAL-CHINA, According to the statistics by Umetal, the average price of 8mm medium plate stands at RMB5,163/tonne today in 23 major cities of China, up by RM5/tonne. The lowest price: RMB4,940/tonne in Chongqing, the highest price: RMB5,410/tonne in Guangzhou.

The 20mm medium plate average price in 23 main areas is RMB4,893/tonne,up by RMB8/tonne. The lowest price: RMB4,740/tonne in Shijiazhuang , the highest price: RMB5,200/tonne in Kunming.

The table below shows more details. (Unit: RMB/tonne)

US$ 1=RMB 6.5825

Summarization of Shipbuilding Plate Prices in Major Cities of China on Jan 20, 2011

The table below shows more details. (Unit: RMB/tonne)

US$ 1=RMB 6.5825

Summarization of HR Coil/Plate Prices in Major Cities of China on Jan 20, 2011

UMETAL-CHINA, According to statistics by Umetal, the 2.75mm (Q235/SS400) average price in 21 major markets is RMB4,908/tonne, up RMB8/tonne. The lowest price: RMB4,770/tonne in Harbin. The highest price: RMB5,060/tonne in Changsha.

The 5.5mm (Q235/SS400) average price in 21 major markets stands at RMB4,797/tonne, up RMB8/tonne. The lowest price: RMB4,690/tonne in Shanghai. The highest price: RMB4,950/tonne in Xi'an.

The table below shows more details. (Unit: RMB/tonne)

US$ 1=RMB 6.5825

Summarization of CR Coil/Plate Prices in Major Cities of China on Jan 20, 2011

UMETAL-CHINA, According to the statistics by Umetal, the average price of CR coil/plate stands at RMB5,613/tonne in 24 major markets of China today, up by RMB8/tonne. The lowest price: RMB5,350/tonne in Wuhan, the highest price: RMB5,900/tonne in Shijiazhuang.

The table below shows more details. (Unit: RMB/tonne)

US$ 1=RMB 6.5825

CHINA STEEL STOCKS

Construction Steel Inventories in Major Cities of China on Jan 14, 2010

Unit: 1,000 tonnes

Medium Plate Inventories in Major Cities of China on Jan 14, 2010

Unit: 1,000 tonnes

Inventories of Steel Products at Port Yuzhu on Jan 13, 2010

Unit: tonne

Inventories of Section Steel in Shanghai on Jan 14, 2010

Unit: tonne

Inventories of Steel Coil & Plate in Shanghai on Jan 14, 2010

Unit: tonne

Inventories of Steel Products at Port Changshu on Jan 13, 2010

Unit: tonne

Foshan Stainless Steel Price Eyes Uptrend on Growing LME Ni Price
Stainless Steel EXW Prices Expected to Jump for Feb 2011
200 Series Stainless Steel Price Keeps Stable in Wuxi Market
LME Ni Price Rises Slightly and Stainless Steel Scrap Price Stands Still
Global Nickel Supply Shortage Totaled 20,100 Tonnes in Jan-Nov Period of 2010
TISCO's Stainless Steel Futures Prices Rise for February 2011
TISCO Lifts Export Prices to South Korea
TISCO's Stainless Steel Exports May Still Stay over 30,000 Tonnes in Jan 2011
Taiwan's Stainless Steel Prices expected to Jump in February 2011

STAINLESS STEEL PRICES

Market Price of 304/NO.1 Stainless Steel in Wuxi of China on Jan 20, 2011

Market Price of 304/2B Stainless Steel in Wuxi of China on Jan 20, 2011

Market Prices of 304/NO.1 Stainless Steel in Foshan of China on Jan 20, 2011

Market Prices of 304/2B Stainless Steel in Foshan of China on Jan 20, 2011

NICKEL PRICES

LME Nickel Inventories and Positions on Jan 19, 2011

Prompt Date	Trading Volume	Position	Change	Inventory	Change
Jan 19, 2011	782	95664	-3306	137238	-114

LME Nickel Prices (Cash & 3-month) on Jan 19, 2011

Prompt Date	Cash settlement price	3-month settlement price
		Opening price	Highest	Lowest	Offer	Range
Jan 19, 2011	26200	26175	26175	25665	25665	-445

SMM 1# Electrolytic Nickel (Ni99.90) Cash Price on Jan 20, 2011

Prompt Date	Price Range	Average Price	Change
Jan 20, 2011	199,300-199,500	199,400	+150

SMM Spot Price of Imported Nickel on Jan 20, 2011

Prompt Date	Price Range	Average Price	Change
Jan 20, 2011	199,300-199,700	199,500	+250

SMM 1# Nickel (Jinchuan) Cash Price on Jan 20, 2011

Prompt Date	Price Range	Average Price	Change
Jan 20, 2011	199,500-200,000	199,750	+250

IRON ORE NEWS

BHP Iron Ore Shipment and Output Hit Record High

BHP Billiton Ltd., the world's largest mining company, said second-quarter iron ore production rose 4 percent to a record, and ore shipments hit record as well. BHP said iron ore shipments from the Pilbara rising to 148m tons a year on an annualised basis, but added that the scope of its planned expansion to its Pilbara operations was still under review.

BHP rivals Rio Tinto and Fortescue Metals Group earlier this week said that plans to upgrade their production from the Pilbara were on-track.

Ore output was 33.7 million metric tons in the three months ended Dec. 31, from 32.5 million tons a year earlier, Melbourne- based BHP said in a statement.

Robust growth in developing economies remains the primary driver of commodity demand, BHP said today. The company, the world's third-largest producer of iron ore, wants to double production of the commodity used to make steel to 240 million tons a year by 2013 to meet Chinese demand.

"Further positive signs are emerging in the United States following the Federal Reserve's ongoing efforts to stimulate the economy," BHP said in the statement. "When coupled with supply side constraint, which has been further exacerbated by weather related disruptions in countries such as Australia, Colombia and South Africa, BHP Billiton remains confident in the fundamentals for its core products."

Sales of iron ore contributed 21 percent of BHP's revenue in the year ended June 30, according to data compiled by Bloomberg. BHP is spending $4.8 billion on the fifth part of the so-called Rapid Growth Projects that will add 50 million tons.

However, BHP said its coking coal output fell in Australia because of record rains and floods. (US$ 1=RMB 6.5825; Compiling by Mike Lei )

Soaring Iron Ore Shipment Drags Great Lakes Gradually out of the Recession

Shipments of bulk cargo such as iron ore on the Great Lakes jumped by one-third last year, a hopeful sign for a region battered by the recession, an industry spokesman said Wednesday.

The Lake Carriers Association credited a gradually healing economy for the increase in waterborne transport of coal, limestone, sand and other raw materials. But the dramatic statistical improvement in 2010 also reflects the industry's dismal showing the previous year.

The ships hauled 88.7 million tons of dry bulk freight last year, up from 66.5 million tons in 2009, an increase of 33.4 percent.

The biggest improvement was in iron ore for the steel industry, which shot up 75 percent ― from 24 million tons in 2009 to 42 million tons last year.

Despite the uptick, overall cargo tonnage for 2010 was about 10 percent below the average for the previous five years. Bulk shipment totals regularly exceeded 100 million tons annually before plunging in 2009, when iron ore transport hit its lowest level since 1938. (US$ 1=RMB 6.5825; Compiling by Mike Lei )

Cost Overrun Postpones Citic's Australian Iron ore Exports

Citic Pacific Ltd., an arm of China's biggest state-owned investment company, said iron ore exports from its Australian project will begin in the 'latter' part of the year, a delay from a previous plan.

The operation components for the first production line should be ready by the end of July, the company said today.

Citic Pacific, building a 28 million-metric-ton iron ore project in Australia's Pilbara region, in August said it planned to start shipping concentrate from the mine in the first half of 2011. The mine had suffered from cost overrun, with the company in May saying building costs jumped by US$835 million.

China Iron Ore Output Increase by 21.6% YoY in 2010

UMETAL-CHINA, According to the statistics released by the National Bureau of Statistics (NBS), the country yielded 98.209 million tonnes of iron ore in December of 2010, up 10.7% YoY. The total iron ore output in 2010 increased by 21.6% year on year to 1.072 billion tones. (US$ 1=RMB 6.5825; Source: Caixun.com; Compiling by Mike Lei )

Update: 22 Companies to Bid for Afghanistan Hajigak Iron Mines

Afghanistan on Wednesday invited 22 companies, including 15 from India, to bid for its giant Hajigak iron ore deposit despite concerns over a worsening insurgency.

The country's Mines Ministry set Aug. 3, 2011 as the deadline for bids for what it says is the largest unmined iron deposit in Asia. It said it expected exploration to begin in 2012, pressing ahead with the project despite security concerns weighing on investors.

The Hajigak deposit straddles Bamiyan, Parwan and Wardak provinces, with only Bamiyan relatively peaceful. The ministry estimates the worth of its reserves at as much as US$350 billion.

But experts say the bounty is years, even decades away and point to massive security and infrastructure challenges for potential investors.

United Mining and Minerals Co. was the only Chinese company on the list, the ministry said. (US$ 1=RMB 6.5825; Compiling by Mike Lei )

Indian Fines Continue Surging on Imported Iron Ore Market

UMETAL-CHINA, Imported iron ore market remained rising trend on January 19. Steelmakers reduced the ratio of imported iron ore in production process, leaving few transactions in the market. The foreign quotes of Indian fines (63.5%) were US$ 185/tonne- US$ 187/tonne. (US$ 1=RMB 6.5825; Source: Umetal; Compiling by Nick Zhang )

Sales Prices of Imported Iron Ore at Chinese Ports on Jan 19, 2011

China Iron Ore Market Prices Set to Rise

UMETAL-CHINA, Iron ore spot market prices have showed small uptrend recently under rising futures prices, which stabilizes raw material prices, although steel market has entered into a slack sales season. However, iron ore concentrate prices haven't seen strong upward momentum influenced by rising steel prices. Some traders still stock up goods in Hebei as mills' shipment decrease on growing steel product prices and traders focus on post-festival market. Currently, iron ore concentrate prices are set at RMB1,060-1,080/tonne (66%, acid, WMT, tax-excluded) in Tangshan.

Mills have stopped production in south Hebei province and accordingly market supply is decreasing. Some companies who hold inventories submit high offers and aim to stock up more goods. Market purchases drop obviously in the short term because partial enterprises begin to conduct maintenance, leading to dull transactions. Iron ore concentrate prices stay at RMB1,130-1,150/tonne (64%, alkaline, WMT, tax-excluded) in Shahe.

Iron ore concentrate prices face weak upward momentum in the short run, but they are set to rise by a small margin in the coming market.

Firstly, energy-saving and emission reduction campaign will gradually phase out this year. Steelmakers are expected to operate at full capacity without the influence of power rating in 2011 and crude steel outputs are bound to increase. Meantime, iron ore demands will go up on the growth in steel market.

Secondly, iron ore concentrate output will edge lower before China's NPC & CPPCC. Local mills have stopped operation under the security check before the Spring Festival. Under the circumstances, market supply will slip and mills may uplift their offers.

Thirdly, imported iron ore prices rise continuously. Indian fines prices are set at RMB1,340/tonne (63.5%, WMT, tax-included) in Tianjin port. It's expected that both imported iron ore and China's domestic iron ore concentrate prices will advance slightly after Spring Festival on account of decreased inventories in steelmakers.

Additionally, construction industry will recover after the festival, which will increase steel mills' orders. Therefore, iron ore concentrate prices will go through uptrend as long as steel mills post profits.

Lastly, port transportation will be influenced during the Spring Festival.

However, steelmakers still need to pay close attention to price decline in the subsequent market. On the one hand, overall market may face oversupply problem if steelmakers operate at full capacity after the festival. On the other hand, billet prices fluctuate frequently and market participants should avoid the risk of large inventories. (US$ 1=RMB 6.5825; Reporting by Li Bochao; Editing by Susan Chen )

 Daily Analysis on Domestic Iron Ore Market on Jan 19, 2011

UMETAL-CHINA, As the Lunar New Year Holiday is already on the horizon, China's domestic iron ore market remains stable as a whole today, with transactions continuing shrinking.

Despite the steel price in North China keeps going up recently, the iron ore price stands still since the demand doesn't improve at all and both the miners and steel mills take careful and cautious ways before the festival.

Umetal analysts predict the current status will keep going on in the short term. Today, spot price for India iron ore hit a record high at US$188.5/tonne, an indicator showing the domestic iron ore market is unlikely to decrease in the following period. (US$ 1=RMB 6.5825; Compiling by Mike Lei )

The table below shows more details regarding prices: (Unit: RMB/tonne)　　　　　　　　　　

UMETAL: Dry Bulk Market Keeps Going Down, Soon to Touch Bottom

UMETAL-CHINA, BDI Continues falling to 1.432 points on Tuesday after Monday's short break. While BCI decreased 0.25 with average capesize earnings dropping to US$ 9,537, BPI dropped 2.49% for a five-day continuous fall with average panamax earning slid to US$ 14,676.

The great flood in Australia, coupled with the awful weather in Colombia, South Africa, Russia and Indonesia brought so big a trouble to the shipping market. The negative affects should be taken weeks or even months to fade away. Meanwhile, the tax rising in the biggest iron ore output area in Northeastern India gave another hit. Under this circumstance, the shipping market were hit one after another, remaining in weak.

Some brokers worried about the situation that could this be the signal of another crisis? As we can predicted: not that serious.

The rise of reserve deposit ratio in China from Jan 20 (the fourth time in two months) could drag down the market in weak for next weeks; however, the BDI was to touch the bottom line.

Seen from data, BDI had been out of the crush and the decline trend had weakened. Petter Rishiovd from Pareto Securities said the market was beginning to oscillate.

The BDI could touch the bottom soon as the freight rates of capesize might have touched the bottom already, said by Nikolai Stavseth from Arctic Securities.

Source: Umetal.net

As the chart showed, the freight rates of West Australia and Brazil to China are low enough as the current economic situation is far better than that in 2008.

Of course the over-supplied capacity is the vital risk for the market, but not that bad yet. The force majeure as flood and awful weather all around the world gives the greatest hit to the current market and when the affects from bad weather faded, may take a month or two, the market would back to the normal on underpins from current economic situation. (US$ 1=RMB 6.5825; Reporting by Nick Zhang )

Umetal: Rising Steel Market Doesn't Boost the Stable Iron Ore Market

UMETAL-CHINA, Recently, both the steel market and billet market in North China showed an uptrend, with the price standing high. However, this seemed little stimulated the local iron ore market, which maintained constantly stable. Currently, iron ore concentrate (Fe66%) price is RMB980~1,000/tonne (wet basis, VAT excluded) and products grading at Fe65% are offered at RMB960~980/tonne (wet basis, VAT excluded).

The reason why the iron ore market was not affected by increasing steel market is that the demand represents sluggish. On one hand, steelmakers in Northeast now guarantee normal production everyday by consuming the stocks, showing no interest to purchase. On the other hand, the bulk of steel mills in Hebei have finished restocking for the upcoming Spring Holiday, so they are also inactive to purchase before the festival. Meanwhile, the local miners are gradually blowing off production to get ready for the Lunar New Year as well, leading to depleted resources and stagnant market.

Analysts from Umetal predicted the market would not fluctuate before the Spring Holiday and transactions might turn stagnant gradually. (US$ 1=RMB 6.5825; Contributing by Li Jin; Compiling by Mike Lei )

Container Growth Rate to Slow A Half in 2011

Demand growth in the container shipping industry will slow in 2011 to nearly half of last year's double-digit expansion as strong consumer buying eases in emerging markets, industry experts said.

The box shipping industry has rapidly recovered from the global downturn in 2008-09, which the IMF has named the 'Great Trade Collapse' that cost the sector an estimated US$ 19.5 billion (US $25 billion) due to a severe slowdown in seaborne trade.

'Demand growth in 2010 was boosted by the restocking of inventory levels and the recovery in consumer demand from the low levels of 2009,' said Tan Hua Joo, analyst with leading container shipping consultancy group Alphaliner.

'This will not be repeated in 2011 as demand trends have largely returned to normal levels.' Demand growth for the container industry, a key indicator of world economic activity, was expected to slow to 7.7 per cent from 14 per cent last year, according to Alphaliner.

That was closely in line to IMF forecasts last October for a 7 per cent expansion in global trade, after jumping 11.4 per cent in 2010. Trade contracted by 11 per cent during the downturn two years ago.

The slowdown in demand will exacerbate the industry's oversupply problem that has prevented shipping companies, many of which returned to profit last year, from passing on higher freight rates to customers. (US$ 1=RMB 6.5825; Compiling by Nick Zhang )

Container Shipping Capacity to Grow 8.8% in 2011

Cellular containership capacity is expected to grow by an average annual rate of 8.7% over the next two years, with 1.26 Mteu due to be added in 2011 and 1.33 Mteu in 2012, based on Alphaliner projections.

These figures follow the 1.20 Mteu which have been added to the fleet in 2010. Although the fleet increases over 2011-2012 will not reach the figures recorded in 2006-2008, when an average of 1.37 Mteu per year were added, the level of capacity additions remains a key concern for the industry.

A large part of the new capacity added in 2010 was absorbed by the increased demand that was caused by the rapid economic recovery. Throughput volumes at the world's five busiest container ports grew by 18% on average in the first three quarters of 2010. However, the average growth at these ports has slowed to 8% in the fourth quarter, with the trend towards slower growth likely to persist into 2011.

The slowing of the demand in the fourth quarter has already started to hurt carriers' load factors. Alphaliner estimates of vessel utilization levels on the Far East-US and Far East-Europe routes dropped to only 80% in December, the lowest levels recorded since May 2009. Attention must now be shifted to utilization levels in the next two months, as these will determine the direction of freight rates after the Lunar New Year celebrations in the Far East.

The rate weakness observed since August last year could continue for the rest of 2011. This would hurt carrier earnings, adding to the pressure from rising fuel costs and charter rates. Bunker prices are currently at their highest levels since October 2008 and are 15% higher than last year's average level. Charter rates have also doubled from last year's lows for the smaller vessel classes while rates for ships above 4,000 TEU have tripled compared to 12 months ago.

More than half of the new capacity additions over the next two years will be contributed by ships above 8,000 TEU. These large ships are mostly aimed at the Asia-Europe and Asia-US routes, creating overcapacity concerns which will however be mitigated through cascadingof vessels of 6,000 to 8,000 TEU to secondary linehaul routes. The cascading has already begun, with MSC leading the way with the introduction of vessels of 8,000 TEU on South Africa routes and ships of up to 7,000 TEU on the Transatlantic, Europe-Indian subcontinent and FE-South America routes.

New orders may still push up the 2012 delivery figures but open slots are limited to some smaller yards. The deliveries scheduled for 2013 currently stand at 820,000 TEU but this figure is expected to rise as yards try to fill up their orderbooks. Several carriers and non-operating owners are currently negotiating ships for delivery in 2013, with expectations that these orders could boost the 2013 deliveries by another 800,000 TEU. (US$ 1=RMB 6.5825; Compiling by Nick Zhang )

Lloyd's Register's Market in China and Korea Greatly Enlarged in 2010

Trust in service levels and technical capability proved to be winning combination for Lloyd's Register in Asia in 2010. Success has been particularly marked in both China and Korea Lloyd's Register's teams in China and Korea have established a strong position in terms of ships ordered in 2010 which will be built to Lloyd's Register class.

Lloyd's Register's share of 2010 orders is, respectively, 29.6% in China and 28.3% in Korea. While orders are from traditional areas of strength such as Greece, the continued expansion of shipowning in Asia is also driving demand.

"It's been an exciting year", said Nick Brown, Marine Country Manager, China. "We have made a huge investment in China and have developed innovative services to support Chinese shipbuilders and both Chinese and international owners building in China. We have been listening to yards and owners and providing the services that they need. It's very rewarding to see the market recognising this investment and placing their trust in Lloyd's Register in China."

In their annual survey Lloyd's Register was recognised as the leading classification society by the Korean Shipbuilders' Association (KOSHIPA). Country Manager in Korea, Luis Benito: "We are doing all that we can to help ensure consistent, safe, service delivery and we see this recognition as a great honour ?C as well as a reflection of the hard work put in by our teams to support Korean newbuilding projects. "

In both China and Korea, as also worldwide, Lloyd's Register's efforts share a common theme: helping ensure quality. But the challenges in the two countries are different. In Korea shipbuilding is more established and is consolidated in fewer shipbuilding groups. The Busan Design Support Office (DSO) has been expanding its services to shipyards through design support and technical advice for ships being built by Korean shipbuilding groups outside of Korea as well as "in-country" construction. Additionally, rules and support for new technologies and structures such as floating offshore installations are being provided as Korean yards expand into new areas.

Lloyd's Register in China has led the Group in developing technical performance management services and oversight, focusing on the quality of welding, materials and components, non destructive examination (NDE) and coating application. New gap analysis services were evolved by Lloyd's Register in China to help shipyards understand, and then deliver, required standards, in paint coatings and welding and NDE. Through these gap analysis services the Group is able to help yards identify what they need to do to deliver the standards expected by both local and international shipowners. Through training and improvement programmes provided by Lloyd's Register, the shipyards are able to upgrade and enhance their performance.

Lloyd's Register's training is also important. The third wave of delegates graduated last September from Lloyd's Register's 25 week intensive programme at the Marine Surveyor Training Institute in Shanghai. The MSTI's innovative programme provides a highly structured approach to technical training and is the bedrock of ongoing staff development, comprising training in corporate values and ethics and interpersonal skills as well as technical aspects under the mentorship of dedicated MSTI instructors. The MSTI graduates are now in the field putting their knowledge to good use.

With the industry looking to develop new, more efficient designs, in both Korea and China Lloyd's Register has an impressive project workload supporting owners' and yards' ambitions. Hydrodynamics, LNG as fuel, nuclear propulsion and other new technologies are on the table. Projects such as the Bestway bulk carrier project in Shanghai demonstrate (see separate release to follow) how Lloyd's Register's technical expertise can provide real value and support to designers and owners both at the initial design concept stages and deliver real results in efficiency benefits - an 18% improvement in the Energy Efficiency Design Index (EEDI) over previous designs whilst lifting more cargo. Innovative projects like these benefit yards, owners and the environment and are further proof that environmental Asia is responding to the environmental challenge. (US$ 1=RMB 6.5825; Compiling by Nick Zhang )

 BDI Could Touch Bottom Soon

UMETAL-CHINA, Baltic Dry Index (BDI), which tracks rates for iron ore, cement, grain, coal and fertilizer, dropped 1.47% or 21 points to 1,411 points on January 19. The increasing shipping capacity kept weighing on the dry bulk market.

Nikolai Stavseth from Arctic Securities said the dry bulk market stopped crushing and now it was oscillating. The BDI could touch the bottom soon as the freight rates of capesize might have touched the bottom already.

Australian mines and ports were recovering but how long it would take back to normal level was still unknown.

Meanwhile, the awful weather in Colombia, South Africa, Russia and Indonesia also aggravated already disordered coal shipments.

The Baltic Capesize Index (BCI) on Wednesday declined 0.88%, with average Capesize earnings falling to US$ 9,143, the new low since January 6, 2009.

The Baltic Panamax Index (BPI) dipped 3.48%, with average Panamax earnings falling to US$ 14,166, declining for sixth continuous day. (US$ 1=RMB 6.5825; Compiling by Nick Zhang )

 Imported Iron Ore Prices Hold Firm in Tangshan and Fangchenggang

UMETAL-CHINA, Imported iron ore market prices keep firm in Tangshan market and partial trader are not eager to sell goods. Spot market prices rise by RMB20/tonne this week in Tangshan market.

Furthermore, spot market transactions are active in Tangshan and transaction prices show a slight growth. A steel mill purchased 30,000 tonnes of Indian fines (65%) at RMB1,360/tonne at the beginning of this week. Additionally, another steelmaker purchased 30,000 tonnes of PB lump at the weekend, with the prices at RMB1,390/tonne.　　

Spot market prices have shown uptrend recently under sharply rising futures prices and continuously growing billet prices, which strengthen steelmakers' confidence in purchasing.

However, mills' quotations are mixed due to tight market supply in upstream market and capital pressures in China's domestic market. Large-sized mills keep their prices high and accordingly the price gap between large-sized and medium & small-sized mills is enlarging. Partial traders predict that iron ore prices will hit record high before the Spring Festival in Tangshan.

As for Fangchenggang, spot market prices keep stable temporarily. A trader's three vessels of Brazilian and Australia iron ore have arrived at Fangchenggang port from the beginning of 2011, with the total amount reaching 400,000 tonnes. Most quotations for the arrived resources are high. Market transactions are slowing. On the one hand, steelmakers reduce their utilization rate of imported iron ore given high prices. On the other hand, port transportation is heavily affected by passenger transport around the Chinese lunar new year, which limits end users' demand. Additionally, local markets have suffered the ice and snow in southwest China. Against such a backdrop, real market transactions stay dull. It's expected that spot market prices will remain high in the short run on rising foreign quotes and transactions have little possibility to see improvement. (US$ 1=RMB 6.5825; Reporting by Liu Danyang; Editing by Susan Chen )

 Umetal: Imported Ore Prices Up on Tight Resources, Market Expected to Soar

UMETAL-CHINA, Spot prices of imported iron ore at China ports kept on modest rise this week, while foreign quotes remained strong momentum, with Indian iron ore fines (Fe63.5%) at US$186-188/DMT, even over US$190/DMT.

At the time when Orissa mulls ban on iron ore exports, there is a rumor that Indian government may lift export tariffs on iron ore to 20% from current 5%-15%. Moreover, Australian flood will impact on the nation's iron ore production and Brazilian rain storm will also affect the shipments. Accordingly, the tight supply has been sharpening, traders has positive outlook on following market and been active in stocking up, which push the imported iron ore prices up, even close to historical high.

The supply shortage will be hard to improve, especially for Indian iron ore. According to China Customs, China imported 89.58 million tonnes of iron ore in January-November 2010, down by 7% year on year. Over the past five years, market share of Indian iron ore in Chinese market has stayed around 20%, but now it declined below 6.4%. The drop on Indian iron ore is mostly because of the country's tax policies, bans on iron ore export and new pricing mode on iron ore. As we may know, Indian iron ore spot price, Australian and Brazilian contract prices have mutual influence upon each other. Presently, a large amount of non-mainstream iron ore resources have flowed into China in the face of higher mainstream resources.

However, when the price is increasing all the way, market transaction is not satisfied. Traders are not willing to sell goods and decide to hold inventory, but actually steel mills feel hard to accept such a high price at the moment, they are at a deadlock.

With the forthcoming of the Spring Festival, most steel mills have basically finished their stocking and not purchased at ports. It is estimated that imported iron ore market will go flat before the festival, but most traders are still optimistic about the market after Chinese New Year holiday. (US$ 1=RMB 6.5825; Contributing by Liu Danyang; Editing by Helen Liu )

Imported Iron Ore Prices Maintain Small

Growth in Shandong UMETAL-CHINA, Imported iron ore prices rise slightly today in Shandong. Facing coming Spring Festival, medium & small traders hold a small amount of inventories and some even have no stocks. Spot market resources focus on low grade iron ore like Indian fines, Indian lump, Australian fines (58%-61%) and some resources from Iran, Southeast Asia and South Africa.

Some traders are worried that steel product prices may lack upward momentum without the support from real transactions and are likely to fall after the festival. Additionally, oversea mills' biding prices are edging higher, which have not got much response from China's steel mills.

Foreign quotes of iron ore may maintain uptrend before the festival and spot market prices may continue to follow suit. However, if steelmakers accept the high offers, they may face great difficulties in passing over the increased cost to downstream market users. (US$ 1=RMB 6.5825; Reporting by Liu Danyang; Editing by Susan Chen )

FERROALLOY NEWS

Freezing Weather Impacted the Cr Market

These days, the snowy weather in China has greatly affected the traffics and power supply. Snow covers mountains and roads. Adding to the tight power supply, many ferrochrome plants has suspended production.

To the market which just now warms up slightly, the bad weather certainly affected the market and frozen the chrome (Cr) ore demand. Today, the spot Cr ore prices keep unchanged with low demand.

What's more, the poor traffic after snow fall has prevented plants from transportation of raw materials in and ferrochrome out. As a result, the plants have to decide production suspension. Supported by the previous stocks, the plants are now not active in purchasing Cr ore now. It estimates that the spot Cr ore market will keep stable in short term. (US$ 1=RMB 6.5825; Editing by Tom Liang )

Traders Complain no Profits in Mn Ore Market

At present, the imported manganese (Mn) ore transaction price keep stable, while it is RMB53/mtu for 45% Australia Mn ore lumpy, RMB47/mtu for 38% South Africa Mn ore (Fe: 5%), RMB44/mtu for 35% South Africa Mn ore (Fe20%) and RMB58/mtu for 50% Indonesia Mn ore lumpy.

Although the Mn ore transaction volume increased, the traders still face much difficulty. Some traders told Umetal that they sold Australia Mn ore 45% at the price of RMB53/mtu, while the cost is RMB55/mtu,so they can not see the profit space.

Most of the traders complained that, there have basically no profits of both high grade Mn ore and medium-and-low grade Mn ore in the market. Therefore, some traders, who have not too much capital pressure do not want to sell Mn ore provisionally. (US$ 1=RMB 6.5825; Editing by Tom Liang )

Cr Ore Market Calms down

UMETAL-CHINA, Port transaction of chrome (Cr) ore calms down as the Spring Festival is around the corner. Distributors say their sales have decreased, and port Cr ore quotations are basically the same as the beginning of this week. Currently, 42% S. African concentrates is prevailingly quoted amid RMB55-56/mtu, 44% S. African concentrates around RMB57-58/mtu, and 42% Turkish lump amid RMB69-70/mtu.

On the other hand, after ferrochrome (FeCr) plants' active purchases during prior period, they tend to take a wait-and-see attitude on the following market under the backdrop of skyrocketing Cr ore prices.

Cr ore market calms down as most FeCr plants have accomplished their purchase targets before the Spring Festival. (US$ 1=RMB 6.5825; Contributing by Zhang Qiqin; Editing by Tom Liang )

Umetal: FeSi Market to Keep Stable with Subdued Inquiry

UMETAL-CHINA, These days, China's domestic ferrosilicon (FeSi) market returns stable after a slight price upswing.

Currently, spots in market remain insufficient in consequence of power rationing. In main production regions, prevailing quotations of FeSi75 and FeSi72 respectively hover amid RMB7,000-7,200/tonne and RMB6,700-6,900/tonne. A part of producers set their prices at a higher level, but transaction is slack at such quotations. A producer discloses that recently inquiry witnesses slight reduction, while transaction keeps normal.

As regards present productivity of FeSi, market prices still lack momentum to ascend as downstream purchase is unlikely to grow in amount before the Spring Festival. Insiders indicate that FeSi market looks set to trace on a stable tendency with little price fluctuation before the Spring Festival. (US$ 1=RMB 6.5825; Contributing by Jiang Jun; Editing by Athina Wang )

Umetal: FeMo Prices Stable with Uptrend on Uptight Spot

UMETAL-CHINA, On January 19, ferromolybdenum (FeMo) transaction was favorable in China's domestic market and spot resources became uptight. Currently, FeMo60 quotations are on an uptrend and are prevailingly hovering amid RMB145,000-147,000/tonne, while molybdenum (Mo) concentrates are averagely quoted at a range of RMB2,100-2,120/mtu.

According to FeMo producers, although steel mills stop purchasing, retailers are active about procurement and there are considerable numbers of small-amount purchases in recent days. Occasionally, there are a few orders for large amounts with transaction prices standing amid RMB145,000-146,000/tonne. Quite a few producers indicate that partial orders have been scheduled to February after the Spring Festival, so they intend not to stop production before the holidays.

In the meantime, firmly high prices of Mo concentrates strongly promote FeMo prices to advance, and FeMo producers believe that the market looks set to keep stable before the Spring Festival and will trace on a bullish trend after that. (US$ 1=RMB 6.5825; Contributing by Qin Chuan; Editing by Athina Wang )

Enquires of Mn Ore Rise in North China

UMETAL-CHINA, Recently, port enquires rise gradually in Tianjin port, and small traders tend to purchase for next year. Today enquiries of S. African Mn ore with high Fe content go up. Presently, 38% S. African Mn ore (Fe: 20%) is quoted amid RMB46-47/mtu or so in Qinzhou port, and that of 30% S. African Mn ore (Fe: 20%) is around RMB43/mtu.

Insiders estimate that foreign quotations of S. African Mn ore with high Fe content tend to rise under the backdrop of appreciating rand and short supply of Mn ore in S. Africa. (US$ 1=RMB 6.5825; Contributing by Liuqian; Editing by Tom Liang )

METAL SCRAP AND PIG IRON NEWS

China 2010 Pig Iron Output Ups 7.4%

China's crude steel output in 2010 rose 9.3% to 626.65 million metric tons, the National Bureau of Statistics said Thursday.

Full-year production set a fresh record high.

In December, China produced 51.52 million tons of crude steel, up 6.3% on year and 2.7% higher than November.

Daily average production of crude steel last month fell slightly, to 1.66 million tons from 1.67 million tons in November.

China's output of iron ore last year rose 21.6% to 1.07 billion tons, also setting a new record. Its ore production in December rose 10.7% to 98.21 million tons.

Output of pig iron, an intermediate product, rose last year 7.4% to 590.2 million tons. In December, China produced 46.65 million tons of pig iron, up 2.3%. (US$ 1=RMB 6.5825; Editing by Ivy Li)

Daily Analysis on Domestic Steel Scrap Market on Jan 19, 2011

UMETAL-CHINA, Today, domestic steel scrap market moves steadily as a whole. Although a few steel mills greatly lift the purchase price of scrap, most steel mills don't follow the suit in the local market, especially reflecting in the North. Steel mills in the North continue to tame the scrap prices, thus the market is unlikely to experience an up of over RMB50/tonne in the near future. (US$ 1=RMB 6.5825; Contributing by Zhao Ziyi; Editing by Linda Liu) 　

The table below shows more details regarding steel mills' purchase prices for steel scrap: (Unit: RMB/tonne)

Umetal: Scrap Prices Up Further in Hebei

UMETAL-CHINA, As learned from scrap markets in Hebei, the scrap prices remain stubbornly high amid the uptrend, and a few steel mills lift the quotations as well.

Along with the upcoming Spring Festival, some scrap traders in Hebei have stopped doing business, and those traders, with certain inventories, are active in settling up their inventories recently to avoid possible risks. But, the supply still falls short of the demand, thus steel mills meet unfavorable arrivals.

In view of the uptight resources, the upward adjustment in steel mills couldn't effectively improve the arrivals. Additionally, steel mills are predicted to be busy replenishing their stocks in the coming week, thus the scrap price are likely to climb higher. (US$ 1=RMB 6.5825; Contributing by Yangjia; Editing by Linda Liu)

The table below shows more details regarding prices: (Unit: RMB/tonne)

Umetal: Note on Steel Mills in East China

UMETAL-CHINA, As learnt from steel mills in East China, most steel mills need to replenish their stocks for their inventories couldn't meet one month operation, while a few steel mills have no strong desire for the scrap, since their stocks could maintain two months' operation. As for scrap traders, they are suggested to think over this point.

Along with the approaching Spring Festival, scrap suppliers in East China are predicted to sell off their goods, but the quantities are uncertain. In result, the volume could directly affect the price movements in the scrap market. Moreover, there would be more uncertainties during the Spring Festival, and those steel mills holding favorable inventories may somewhat cut the purchase price. Accordingly, scrap traders now should operate cautiously to avoid possible risks in the future. (US$ 1=RMB 6.5825; Contributing by Zhao Ziyi; Editing by Linda Liu) 　

Umetal: Scrap Prices in Hunan to Remain Stable before the Spring Festival

UMETAL-CHINA, Today, scrap markets in Hunan move steadily, while the market transactions are sluggish. But, some scrap traders still provide high quotations.

As the Spring Festival is on the horizon, some medium-and-small sized enterprises stop doing business to go home one after another, and moreover, the scrap collection meets certain difficulties recently. In addition, the cold weather somewhat disrupts the scrap collection as well. Accordingly, some steel mills said that the price increase couldn't effectively stimulate traders to make shipments. In result, most steel mills choose to watch carefully at the moment. But, some steel mills, with limited inventories, are likely to lift the price further.

It is learned that most steel mills hold enough stocks for the Spring Festival, while some of them may choose to purchase more scrap on concerns over the further uptrend after the Spring Festival. Accordingly, analyst from Umetal deems that scrap markets in Hunan would remain stable amid corrections before the festival, but the prices are predicted to climb higher after the Spring Festival. (US$ 1=RMB 6.5825; Contributing by Luwei; Editing by Linda Liu) 　

Daily Analysis on Domestic Pig Iron Market on Jan 19, 2011

UMETAL-CHINA, Chinese pig iron market is stable today when Chinese new year holiday is approaching. Steel pig is still buoyant. The purchase price of steel pig in Hebei area varies on supply tightness. It is still difficult for steel mills to buy steel pig.

Steel pig buying price is RMB3,820-3,850 per tonne in Tangshan, delivered to mills. Some producers even hike price to RMB3,870 per tonne, as rising steel billet price pushes steel pig market higher.

Cast iron market is at high level, but transaction is few.

Nodular cast iron prevailing price is pegged at RMB3,930 per tonne.

Pig iron market is expected to remain steady in the near future, given the upcoming Chinese new year holiday. (US$ 1=RMB 6.5825; Contributing by Wang Senhu; Editing by Ivy Li)

Umetal: Pig Iron Market Steady in East China

UMETAL-CHINA, Pig iron market in East China remains unchanged today, with flat transaction. With approaching Chinese new year holiday, market believes the price will not change too much and people are upbeat about the post-holiday market.

Steel pig supply is still tight, leading to firm price in range of RMB3,720-3,750 per tonne in Xuzhou and RMB3,700-3,750 per tonne in Zibo. And some producers limit selling volume to wait for higher price after the said holiday. As a result, only shipment of 3,000-5,000 tonnes of steel pig is delivered.

Cast iron ore transactions did not grow too much. Some works from downstream industry have stopped production for the holiday and also hold some stocks, so they are not active in purchase at this moment. Currently, traders are active in buying cast iron.

Market insiders said usually the market would be on the rise after Chinese new year holiday. But given the complicated situation of iron and steel industry in 2010, some traders are building some stocks but not on a large scale.

The prevailing cast iron price is RMB4,050-4,100 per tonne in Xuzhou, RMB3,950-4,000 per tonne in Wuxi and Changzhou as well as RMB4,200 per tonne in Jinan.

Pig iron market in East China is unlikely to change a lot, but remain stable. (US$ 1=RMB 6.5825; Contributing by Zhou Yanqun; Editing by Ivy Li)

STEEL NEWS

China: Nanjing Steel Adjusts Partial Prices on Jan 20

UMETAL-CHINA, The Jiangsu province-based Nanjing Steel adjusts its prices today based on its price policy released on Jan 10.

Specifically, prices for round bar, carbon round bar and alloy steel bar all rise by RMB80/tonne. φ41-60mm, φ61-85mm, φ86-100mm, φ101-130mm and φ131-180mm products are each priced RMB30/tonne, RMB60/tonne, RMB90/tonne, RMB120/tonne and RMB170/tonne higher than that of φ16-40mm.

Moreover, prices for common carbon rolled steel plate, low-alloy plate, boiler container plate and shipbuilding plate all remain steady.

Lastly, prices for common strip steel increase by RMB90/tonne and prices for quality strip steel rise by RMB50/tonne. (US$ 1=RMB 6.5825; Reporting by Cheng Xubao; Editing by Ediee Jiang )

All the aforesaid prices include the 17% VAT and take effect as of Jan 21, 2011.

The table below shows more details. (Unit: RMB/tonne)

China: Square Billet Prices Stabilize at a High Level in Jiangsu

UMETAL-CHINA, The billet market stayed stable in Jiangsu as business started on Wednesday. Mainstream prices for common carbon billet stood at RMB 4,400-4,500/tonne while low-alloy billet saw prices at RMB 4,500-4,550/tonne (cash, VAT included). The amount of spot resources was small.

Umetal cites reasons for the current billet market status as below.

Firstly, billet offers kept flat in Shanghai and the traders were less eager to promote sales. The demand was hard to pick up as it began to snow in many areas of China East. However, steel prices remained robustly high, with no signs to go downwards. The billet prices still trended to rise.

By Wednesday, 16-25mm rebar (exempted from inspection) and other non-free rebar products of similar specification had each been priced at RMB 4,600-4,610/tonne and RMB 4,580-4,590/tonne while high-speed wire rod had seen prices at RMB 4,720-4,740/tonne.

Moreover, the billet price increase was mainly supported by high raw materials prices and supply shortage. Reportedly, some distributors, who had stocks at hand, refused to make quotations, while some others had not yet any resources at hand.

Transactions will enter onto a declining path in the coming market, just a dozen of days before the Spring Festival. Therefore, billet prices will be under adjustments at high levels in Jiangsu. (US$ 1=RMB 6.5825; Contributing by Cheng Xubao; Editing by Tobey Li )

Umetal: Steel Billet Prices See Another Significant Rise

UMETAL-CHINA, Yesterday, steel billet prices rose by RMB40/tonne in North China which made traders more confused about the coming market. Presently, most traders are playing waiting games. Reportedly, cash prices (tax included) for 150 common square billet produced by Anfeng Steel stand at RMB4,370/tonne. Towards the rocketing prices, transactions do not show obvious increase.

Umetal cites reasons for the current market status as below:

Firstly, Indian government decided to impose 20% tariffs on iron ore exports, effective on April. Affected by that, iron ore prices rose slightly. Besides, prices for coking coal and scrap steel were also at a high level, which pushed up costs of billet products.

Secondly, international export prices for square billet saw a continuous uptrend which also affected domestic billet prices. Recently, strike prices for square billet from Thailand stand at US$650/tonne (CFR) in Philippine and square billet products from Malaysia are priced at US$680/tonne (CFR) in Indonesia.

Thirdly, prices for relevant steel products such as rebar and strip steel increased on various levels and shipments were fair this week, which improved demands for billet products.

The table below shows more details:

Data shows that current billet prices are at a peak since 2009. The rising prices make downstream traders feel confused. They are worrying about the increased risks in the coming market and unwilling to purchase steel resources in large quantities. That is the reason why local market is short of spot resources.

Taken together, recent increase in billet prices are largely supported by costs and traders' positive sentiments. As Chinese Spring Festival approaches, traders will stop making deals in the next two weeks. Considering that it is hard to predict the trend of following market, steel mills just produce resources according to current orders and refuse to take new orders. Therefore, transactions will not present a good performance and billet prices will show a status of consolidation before the Spring Festival. (US$ 1=RMB 6.5825; Source: Umetal; Compiling by Simon Liu )

Singapore: Rising Costs Push up Rebar Prices

UMETAL-CHINA, Due to rising prices of scrap steel and steel billet, rebar prices rise to SGD1,020-1,030/tonne (US$791-799/tonne).

Last week, quotations for square billet reached US$650-670/tonne (CFR) in Southeast Asia market, which set a new high in the past 8 months. Quotations for scrap steel stood at USD500/tonne and also hit a record since April 2010.

In the first week of 2011, strike price for rebar products amounted to SGD900-920/tonne in Singapore, close to the historical record of SGD920-960/tonne in 2009.

As for this week, import prices for rebar products from Turkey go up to US$770-780/tonne from US$680-700/tonne (CFR) in late December. (US$ 1=RMB 6.5825; Source: Bulk Commodity Nets; Compiling by Simon Liu )

MSCI: Steel Inventory Sees a Significant Increase MoM

UMETAL-CHINA, Steel inventory of American metal service center reached 7.71 million short tonnes in December 2010, up by 5.9% MoM and by 25.6% YoY.

According to the Metal Service Center Institute (MSCI): "December shipments of steel products from U.S. metals service centers totaled nearly 2.82 million short tonnes, down by 5.7% MoM and up by 25.6% YoY. " Calculating by supply days, inventory in December could provide 2.7 months' supply. During the same period of 2009, inventory of American metals service center represented a 2.7-month supply. In 2010, American metals service center had delivered 35.7 million short tonnes of steel products, up by 20.6% YoY. (US$ 1=RMB 6.5825; Reporting by Cheng Xubao; Editing by Simon Liu)

China: Benxi Steel Unveils Steel Prices for Feb 2011

UMETAL-CHINA, The Liaoning province-based Benxi Steel Group Corporation (Benxi Steel) issues steel prices for Feb, 2011 on Jan 20, 2011, based on its Jan price policy.

Specifically, EXW prices for hot rolled (HR) coil/plate are up by RMB150/tonne while HR plate is priced RMB 50/tonne higher than HRC. A freight complement of RMB 80 will be made for products shipped to China East and China South.

Additionally, cold rolled (CR) coil/plate prices rise by RMB 260/tonne while the added prices for CR plate, based on CRC prices, are changed into RMB 20/tonne from the previous RMB 50/tonne. CR full hard coil sees prices up by RMB 350/tonne and a concession of RMB 80/tonne is made merely for CR full hard sheet, instead of the prior said all CR full hard steel.

Moreover, pickled coil prices grow by RMB 200/tonne. EXW prices for galvanized sheet from No. 1 Cold Rolling Plant climb by RMB 300/tonne and those for similar products made by the No. 2 Cold Rolling Plant (Puxiang Plant) gain by RMB 280/tonne.

Lastly, EXW prices for color coated coil and silicon steel go up by RMB 300/tonne and RMB 200/tonne respectively. The price gap between 50W1000 & 50W1300 silicon steel and 50W800 silicon steel has widened to RMB -100/-150/tonne from the prior RMB -20/-70/tonne.

The table below shows more details. (Unit: RMB/tonne)　

All the aforesaid prices exclude the 17% VAT and will take effect as of Feb 1, 2011. (US$ 1=RMB 6.5825; Source: Benxi Steel; Compiling by Tobey Li )

China: JICSO Adjusts Construction Steel Prices in Xi'an Market on Jan 20

UMETAL-CHINA, Jiuquan Iron & Steel Co., Ltd (JISCO) corrects construction steel prices in Xi'an market today, based on its price policy released on January 20.

Specifically, prices for wire rod products rise by RMB10/tonne and rebar prices keep stable. Presently, strike prices for Q235 Φ6.5-10mm high-speed wire rod reach RMB4,850/tonne. HRB335 Φ12-14mm and HRB335 Φ16-25mm rebar are priced at RMB4,790/tonne and RMB4,630/tonne separately. Prices for HRB400 rebar are RMB200/tonne higher than that of HRB335 rebar.

All the aforesaid prices include 17% VAT and take effect on January 20, 2011. (US$ 1=RMB 6.5825; Reporting by Cheng Xubao; Editing by Simon Liu)

NBS: Average Daily Production of Crude Steel Drops to 1.6619 MT in Dec

UMETAL-CHINA, According to the latest data from the National Bureau of Statistics of China (NBS), the domestic crude steel production was 51.52 MT in Dec, increased by 6.3% YoY. The average daily production of crude steel was 1.6619 MT in Dec, decreased by 10,000 tonnes from Nov. The total domestic crude steel production was 626.65 MT in 2010, up by 9.3% YoY. (US$ 1=RMB 6.5825; Reporting by Cheng Xubao; Editing by Ediee Jiang )

The table below shows more details. (Unit: MT)

China: JICSO Lifts Flat Product Prices in Xi'an Market on Jan 20

UMETAL-CHINA, Jiuquan Iron & Steel Co., Ltd (JISCO) raises flat product prices in Xi'an market today, based on its price policy unveiled on January 19.

Specifically, prices for hot rolled coil/plate and medium plate both see an increase of RMB20/tonne. Presently, Q235 14-25mm medium plate and Q235 4.75mm hot rolled coil/plate are priced at RMB4,830/tonne and RMB4,930/tonne respectively.

All the aforesaid prices include 17% VAT and take effect on January 20, 2011. (US$ 1=RMB 6.5825; Reporting by Cheng Xubao; Editing by Simon Liu)

China: Liuzhou Steel Raises Partial Steel EXW Prices on Jan 20

UMETAL-CHINA, The Guangxi province-based Liuzhou Steel adjusts partial EXW prices today.

Specifically, EXW prices for wire rod and rebar both see an increase of RMB30/tonne. Prices for hot rolled coil/plate, medium plate, and cold rolled coil/plate all increase by RMB50/tonne. HRB400 rebar products are priced RMB160/tonne higher than that of HRB335 rebar products.

All the aforesaid prices include the 17% VAT and take effect as of Jan 20, 2011. (US$ 1=RMB 6.5825; Reporting by Cheng Xubao; Editing by Ediee Jiang )

The table below shows more details. (Unit: RMB/tonne)

China: Wuhan Steel to Lift Non-steel Share to 30% by the End of "12th Five-year" Period

UMETAL-CHINA, Under high risks in the steel sector, Wuhan Steel will shift its economic growth point to the non-steel industries and plans to list them in Hong Kong Stocks and overseas.

"We intend to establish a global strategic model through the overseas projects and to seek to be listed in Hong Kong Stocks and overseas by industrial investing, so as to further develop our non-steel sectors," a source in charge of Wuhan Steel told the news conference.

Reportedly, Wuhan Steel strives to raise the share of its non-steel sectors to 30% from the current 8% by the end of the "12 th Five-year Plan" period.

The steel industries' profits have been being gobbled up by the upstream enterprises these years as the global coke & iron ore prices keep skyrocketing. Under the burden of more risks in the steel sector, Wuhan Steel has become one of the steelmakers, who most frequently try to find their ways out by investing in the overseas mining industry, and has injected investments in seven iron ore projects with a capacity of 6 billion tonnes in Canada, Brazil, Australia, Liberia, Madagascar and so on.

The company will sweep up various industries, such as the mining industry, the machinery industry, the steel structure industry, the coal chemical industry and the capital operation industry, and strive to make them all listed overseas. (US$ 1=RMB 6.5825; Source: National Business Daily; Compiling by Tobey Li )

China: Global Demand Rise Gives China an Opportunity to Increase Export

UMETAL-CHINA, International Steelmakers increase their EXW prices as international demand grows and the prices for coking coal and iron ore rise. The US steelmakers almost go crazy to lift their prices. In the past two months, Nucor raised their coil/plate prices for six times. If this is accepted by the market, the sheet prices will be at the highest level since Nov 2008. Many European steelmakers also announce to raise prices for the second quarter of 2011. ArcelorMittal increases its prices by Euro90/tonne. The international steel price rise will definitely stimulate the price rise of coil/plate. It is reported that the US customers are more willing to purchase from the CIS countries, even if they have to wait for 3 or 4 months to get the delivery.

Till last week, prices for coil/plate from Russia and Ukraine increased more than US$100/tonne than those in last Dec. Now the resources for Feb are nearly sold out. Most of the coil/plate products are shipped to the US, the East Europe and Asia.

In Japan, the prices for HRC shipped to S. Korea in the first quarter are almost RMB750/tonne (FOB) and will probably go up further. Because of the flood in Australia, Japanese steelmakers are short of coking coals. In Taiwan, China Steel Corporation also increased their HRC prices for March by US$30-40/tonne, and may lift again since the current prices are still below other big Asian steelmakers' offer.

As the international purchases are going up, the market sources are feeling quite positive about the international export of coil/plate and they think that the export prices will increase further in the future.

The rise of international demand will pump the Chinese coil/plate export indirectly. The fast price rise in the US market is attractive to the steel export in the CIS, S. Korea and Taiwan. Although China cannot export directly to the US due to the anti-dumping issue, China can enlarge the export of boron-added HRC to S. Korea, if the Koreans can sell more HRC to the US. The price rise in Europe is not as big as in the US and has not much attraction to China. If later this year, the demand in India and Southeast Asia resumes, China's steel export still has a good chance to perform well this year. (US$ 1=RMB 6.5825; Reporting by Man Wen; Editing by Ediee Jiang )

The table below shows more details. (Unit: US$/tonne)

Tokyo Steel to Incur Losses for the 2nd Straight Year

Tokyo Steel Manufacturing Co (5423.T) on Wednesday said it now expects a second straight year of losses, hurt by a jump in raw materials costs and weak demand in Japan .

Japan's biggest maker of construction steel has been raising its product prices but this hasn't been enough to offset a nearly 30 percent rise over the past three months in the cost of steel scrap, its major input, amid robust demand in the United States and Asia.

The Nikkei business daily also reported this week that profits at Nippon Steel Corp (5401.T) and JFE Holdings Inc (5411.T) may undershoot their forecasts due to rising costs.

Tokyo Steel slashed its outlook to a parent net loss of 8 billion yen ($97 million) for the financial year ending March 31, from a profit of 1 billion yen that it had forecast in October.

That is much deeper than the average estimate for a 960 million yen loss in a poll 12 analysts by Thomson Reuters I/B/E/S.

Nippon Steel and JFE, blast furnace steelmakers which use iron ore and coking coal as input, are also wary of rapid cost increases as floods at Australian mills have forced them to look for new suppliers and coking coal prices are expected to rise by a fifth to $300 a tonne, the highest in nearly two years.
The Nikkei said on Tuesday that Nippon Steel's recurring profit -- which is pretax and before special items -- is expected to be around 220 billion yen ($2.7 billion) this financial year, about 30 billion yen lower than its forecast, while JFE's recurring profit may total around 200 billion yen, missing its forecast by 20 billion yen.

That compares with an average estimate for Nippon Steel of a 256.3 billion yen profit in a survey of 20 analysts by Thomson Reuters I/B/E/S, while JFE's profit is expected to total 224.5 billion yen on average according to a poll of 21 analysts.

Nippon Steel, the world's No. 4 steelmaker, and fifth-ranked JFE will announce earnings results for the 2010/11 financial year on Jan. 28.

Shares of Tokyo Steel closed down 0.6 percent at 912 yen before the announcement, while the benchmark Nikkei .N225 rose 0.4 percent. (US$ 1=RMB 6.5825; Editing by Tobey Li )

STAINLESS STEEL NEWS

Foshan Stainless Steel Price Eyes Uptrend on Growing LME Ni Price

UMETAL-CHINA, Price of LME nickel through ring trade gained by US$265/tonne on Jan 18, closing at US$26,100/tonne; nickel inventory reached 137,352 tonnes, down 414 tonnes.

LME nickel inventory experienced no large changes recently, while global stainless steel outputs had recovered gradually since entering the first quarter of 2011; downstream demands for electrolytic nickel would also improve, which all did help to boost nickel prices.

LME nickel price had risen to around US$26,550/tonne on Jan 18, while ended in US$26,080/tonne, reflecting that market investors still played waiting games. LME Ni price might see narrow fluctuation after surpassing US$26,000/tonne, but it would maintain general uptrend. And then LME nickel price might continue to explore the resistance level of US$26,000/tonne. If successfully making breakthrough, it would try to hit US$27,000/tonne later. Support level of LME Ni price stayed at US$25,200/tonne.

Spot stainless steel prices in Foshan moved up yesterday on account of favorable Germany's economic data and rebounding LME Ni price. TISCO's type 304/2B stainless steel 2.0mm prices prevailed at RMB25,700/tonne (side cut); market transactions remained flat.

It was learnt that L1 series 0.5mm and 0.6mm stainless steel resources were insufficient along with relatively high quotations, but there was little transaction. In addition, partial traders would begin their holiday after this week, so market transactions were unlikely to show marked increases in recent two days; Foshan stainless steel market prices might not witness large changes in the coming days. (US$ 1=RMB 6.5825; Contributing by Li Min; Editing by Vicky Wei)

Prevailing Offers for Stainless Steel in Foshan on Jan 19: