China Dissatisfied About EU’s Anti-dumping Measures
January 31, 2009
The Chinese government expressed dissatisfaction over the EU’s final decision to take anti-dumping measures against China-made fasteners, Yao Jian, spokesperson of the Ministry of Commerce, said on Wednesday.
Yao also expressed the attitude on behalf of Chinese fastener manufacturers.
Yao said that China believed that practices by the EU’s in the investigation and verdict on China-exported fasteners were inconsistent with WTO (World Trade Organization) rules and EU anti-dumping laws.
“The ruling against the Chinese products lacked justness and transparency, with obvious probability toward trade protectionism,” Yao noted.
This “extremely damaged the legitimate rights and interests of the Chinese fastener manufacturers. China will study and assess the verdict and retain right to appeal to the World Trade Organization against the ruling,” Yao said.
On Nov. 9, 2007, the European Commission decided to impose investigation against steel fasteners made in China.
The EU is a major target market for China-made fasteners, accounting for one third of the country’s total exports of such products.
Fasteners, including (strew) nuts, bolts, strews and nut collars, are widely used to manufacture machines, equipment and motor vehicles, build ships, railroads, bridges and structures and to produce tools, instruments and meters.
Source: Xinhua News Agency
Tags: organization rules, european commission, final decisionRelated Posts:
The Steel Revitalization Plans in China
January 29, 2009
It is reported that the State Council has worked out the steel revitalization plans, which focus on controlling the whole volume, washing out the obsolete capacity and encouraging technical innovation and merger & acquisition to bail out the slumping domestic steel industry.
Mr Wang Yifang Board chairman of Hebei Steel Group said even though the released plan has not cover detailed regulations, it will provides timely help for the development of the steel enterprises in Hebei province, the largest steel production base in China. To the large-sized steel mills, the plan means low cost expansion.
As one of the largest steel complexes in China, Hebei Steel Group has enhanced its place in steel industry since it was founded, and became the national major supportive enterprise.
As per local steel assistance plan, total crude steel capacity would be controlled within 80 million tons by 2020. In order to realize the goal, the province has to concentrate the quality steel resources by promoting the progress of M&As. Most experts believe that the steel revitalization policy will lay a solid floor for the further development of Hebei steel industry.
According to the plan special funds will be allocated from the central budget to encourage technological advancement of the sector, readjustment of products mix and improvements of product quality
As one of the pillar industries in Hebei province, the steel industry contributes more than 25% of the provincial total industrial profits in recent years. However, it still lacks of competitiveness since most local produced products are primary one, with few high value-added and high-tech contained products.
The local government should draw some supportive policies in line with the steel revitalization plan to encourage the technologic innovation. Only in this way, can Hebei province form high quality vanadium and titanium, construction steel and slabs production lines with high value added products, and end the extensive develop pattern in local steel industry.
Source: China Steel net.com
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Iron Ore Price May Decline By 50 % in 2009 in China
January 29, 2009
Iron ore contract prices may fall as much as 50 percent this year amid a slowdown in China, the world’s biggest consumer of the raw material, according to Australia’s richest woman and mining magnate Gina Rinehart.
“We’re hearing 30 percent, 40 percent, 50 percent discounts to last year’s contract price,” Rinehart, who controls closely held Hancock Prospecting Pty, said in an interview with Bloomberg Television. That compares with the average forecast of a 30 percent cut in a Bloomberg survey of 11 analysts last week.
Chinese steelmakers are likely to win their first cut in contract prices in seven years as a global recession curbs demand for commodities. Rinehart’s partner, Rio Tinto Group, the world’s second-biggest exporter of the ore, and Baosteel Group Corp. began talks this month to set prices from April 1, according to two company executives who asked not to be identified.
“The economy in China is very sad right now,” Rinehart said. China’s economy may rebound soon and “ultimately, prices will rise,” she said. Hancock isn’t party to the talks.
Hancock Prospecting is partner with Rio in the Hope Downs iron ore project in Western Australia. Hancock is also seeking to develop the Roy Hill iron ore mine in Western Australia.
Rio, BHP Billiton Ltd., and Brazil’s Cia. Vale do Rio Doce, which handle three-quarters of traded iron ore, sell the steelmaking material under long-term contracts to China’s 20 biggest mills and traders at agreed annual prices.
China may be asking for a price cut of between 40 percent and 45 percent, Macquarie Group Ltd. analysts led by London-based Jim Lennon said in a Jan. 12 report. UBS AG analysts have forecast a decline of 40 percent. A 30 percent cut would still be the second- highest price on record.
Source: China Steel Net.com
Tags: iron ore, chinese, EURelated Posts:
Sinosteel Wins Nod for Aussie Merger
January 25, 2009
Sinosteel Corp, China’s second-biggest iron-ore trading company, won Australian government approval to buy as much as 49.9 percent of Murchison Metals Ltd.
The Chinese company had previously sought approval to acquire up to 100 percent of Perth-based Murchison, Australia’s Treasurer Wayne Swan said yesterday. That application was withdrawn, he said, according to Bloomberg News.
A 49.9 percent stake in Murchison would be worth A$251 million (US$202 million) based on the stock’s last traded price.
Sinosteel controls Midwest Corp, a neighboring iron ore producer to Murchison in Western Australia state’s mid-west region. Murchison is seeking to develop a A$3.5 billion port, rail and mine project with Japan’s Mitsubishi Corp at Oakajee in the state.
“Overseas investment develops assets,” Andrew Forrest, chief executive officer of iron-ore miner Fortescue Metals Group Ltd, said in an interview broadcast on Sky Business News before the approval was issued. “I think you will continue to see growth in foreign investment in Australia because we are resource rich and capital poor.”
Murchison climbed 11 percent to A$1.22 on the Australian Stock Exchange on Friday in Sydney.
The shares fell to the lowest in almost two years the previous day amid concerns that the cost of borrowing funds, needed to develop the project, will increase.
An initial study into developing the Oakajee project is scheduled to be completed by the middle of next year and, if approved, the port may open as early as 2012. Murchison and Mitsubishi won a tender to develop the port in July, beating a rival proposal from a China-backed venture.
“In approving Sinosteel’s application, I have determined that a shareholding of up to 49.9 percent in Murchison will maintain diversity of ownership within the mid-west region,” Swan said in an e-mailed statement.
“The development of such potentially significant new resource areas should occur through arrangements that are open to multiple investors.”
Source: Shanghai Daily
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48 Major Steel Mills in The Red
January 2, 2009
About two thirds of China’s major steel mills were in the red in November, suffering from high prices in raw materials and the decreasing prices of steel products.
Forty-eight out of 71 large and medium-sized domestic steelmakers saw a loss in November (six more than in October), with total losses for the month in the neighborhood of 12.77 billion yuan, China Securities Journal reported yesterday citing anonymous sources.
Analysts largely contributed the loss to high iron ore prices and dropping steel prices, and they remained pessimistic for the mills’ performance in December.
Chinese steelmakers agreed to pay a record of $92 per ton for iron ore in the 2008 long-term contract, and steel prices have dropped about 40 percent since June as a result of the global financial crisis.
Authorities are considering measures including buying some steel products for reserves to help the industry through the rough time, Minister of Industry and Information Technology Li Yizhong recently said in Beijing.
Reports said the government would likely spend 10-15 billion yuan to establish a reserve of 3-5 million tons.
Some major steelmakers have increased steel prices on the news.
Angang Steel will raise the price of hot rolling steel by 350 yuan per ton from January; Shougang Group will rise by 300 yuan per ton and China’s largest steelmaker Baosteel will also raise product prices by 6 to 10 percent from February.
Analysts said building up stocks may provide some support to prices in the short term, but the policy could also mean producers take longer to emerge from the current slump in demand with a U-shaped recovery rather than a V-shaped bounce, since the government stocks may return to the market as prices recover.
The government could also increase export tax rebates on high-end steel products and will encourage industry reshuffling as well as innovation.
Source: China Steel Net.com
Tags: Yuan, china steel, EURelated Posts:
