Showing posts with label Iron/Steel. Show all posts
Showing posts with label Iron/Steel. Show all posts

Monday, December 31, 2012

Iron ore, steel prices to fall in 2013 - Cochilco

Iron ore prices will fall to an average of US$120/t in 2013 before rising again to US$125/t in 2014, according to a study by Chile's state copper comission Cochilco.

The commission is estimating an average price of US$125/t for this year.

The price of iron ore fell 10% in 2012 due to a series of factors that resulted in a market surplus.

These include the larger than expected slowdown in the Chinese economy, the financial crisis in Europe that reduced demand for products and an increase in output as projects entered into production.

Next year will not be very different and the global surplus will continue into 2014, according to Cochilco.

Demand from China will also remain subdued, rising just 2% in 2013.

In the last five years, China has increased its consumption of iron ore from a 56.5% share in 2008 to 68.8% in October 2012, according to the report.

In 2011 global iron ore production was 2.93Bt, up 4.7% over the previous year. Output is expected to increase in 2012 by 3.5%.

STEEL

HRC steel prices registered a fall of 14% in 2012 and the commission is forecasting an average price of US$651/t for the year.

China is the main consumer absorbing 44% and therefore the slowdown in the Asian country affected demand and consequently prices during the year.

The steel market will continue to be in surplus in 2013, although smaller than in 2012. The market is expected to enter into balance in 2014, according to the report.

Cochilco is forecasting a price of US$693/t for HRC steel to the Asian market in 2013 rising to US$716/t in 2014.

Despite the slowdown in demand from China and India, Cochilco believes that steel consumption in these countries will continue to grow in 2012-14, but at a slower pace than in the past.

Crude steel production in 2011 was 1.49Bt, up 6.2% from 2010. In 2012, production is expected to increase 2.9% to 1.54Bt.

Friday, February 24, 2012

Usiminas' board approves changes designed to improve management focus - Brasil

Brazilian steelmaker Usiminas' (Bovespa: USIM5) new management structure will allow the company to better organize and direct its management focus, a company press official told BNamericas.
The new structure will contribute to a continuous increase in efficiency and competitiveness, the official said.

Usiminas' board recently approved the new executive structure, involving a CEO and six VPS.
Argentine Marcelo Chara, from Luxembourg-based steel group Ternium's (NYSE: TX) subsidiary Ternium Siderar, was appointed VP of industry, and Sergio Andrade, the previous business and steel VP is now commercial VP.

ndrade will expand Usiminas' markets, regain market share and increase exports. The executive will also be responsible for the company's service and distribution center (Soluções Usiminas).
Ronald Seckelmann remained as finance and investor relations VP.
Usiminas' pension fund (CEU) president, Erwin Romel de Souza, will take over as quality and technology VP.

The company also created two VP positions. Italian Paolo Basseti, who was the director of Ternium's Brazilian subsidiary - will manage the iron ore business (Mineração Usiminas), capital goods (Usiminas Mecânica) and auto parts (Automotiva Usiminas).
Japanese executive Nobuhiro Yamamoto will lead the corporate planning division. The company also appointed Vanderlei Schiller as VP of HR and organizational development.

In early January, Usiminas' board appointed Argentine Julián Eguren as CEO. Eguren - who replaced Wilson Brumer - was previously in charge of Ternium's North American operations and CEO of the company's Mexican subsidiary.

Following share purchase agreements in November, Usiminas' main controllers are now Japanese group Nippon Steel and Ternium.

Minas Gerais state-based Usiminas is the largest fully integrated flat steel manufacturer in Latin America, with crude steel capacity of 9.5Mt/y. Usiminas also has iron ore mines, steel distribution subsidiaries and operates downstream facilities in Brazil.