China Starts To Curb Excessive Inventory

The cutback in steel and and cement production that Beijing has ordered can be read to mean that the economic planners are confident the re-acceleration of growth is soundly based. Or it can be seen as continuing concern that the over lending that has fueled this year’s growth needs to be reined in further still. [...]

The Battle For China’s Steel

The Economic Observer says the investigation into the leaking of China’s negotiating position at the iron-ore price negotiations earlier this year that has resulted in the detention without charge of four Rio Tinto employers has widened to include Baosteel, the largest steel company. (China Daily has reported that all 16 of the leading steel mills [...]

Steel Cuckoo

A first cuckoo of economic spring? Several steel mills have announced price increases ranging from 5% to 25% for a variety of products, the Asian Wall Street Journal reports.
Baosteel and Anshan Iron & Steel say that they will raise prices for hot-rolled coil steel. Baosteel also said it will increase production at some of its [...]

Vale Backs Down Over Iron Ore Premium

Baosteel Group, the country’s biggest steelmaker, says Cia. Vale Do Rio Doco, the world’s largest iron ore supplier, has dropped its demand for a 12% premium on its exports to China. The global slowdown has led to a slump in demand for Chinese steel at home and abroad — and piles of unused iron ore [...]

Aluminum, Copper Smelters Facing Same Slump As Steelmakers

Aluminum smelters and copper refiners are facing the same problems as China’s steelmakers. Slowing economic growth in their domestic and export markets is cutting demand for their products, lowering prices and squeezing profits.
The biggest aluminum smelters met commerce and finance ministry officials today to ask for tax breaks and purchases by the state reserve. Bloomberg [...]

Flat Output Will Help Steelmakers Strike Better Iron Ore Deals

Confirmation of the problems in the steel industry comes from Shan Shanghua, secretary general of the China Iron and Steel Association (here via People’s Daily).
He says production will be flat this year at 500 million tonnes, revising the association’s previous forecast of 5%-10% growth. Nor does he expect output to grow next year. The world [...]

Baoshan Steel Will Cut Prices, Again, As Demand Slumps

When Baoshan Iron and Steel, the country’s biggest steelmaker, says it is to cut prices by up to 20%, it is a clear sign that the economy is slowing and an industry is in trouble. And even the more so as it is Baoshan’s  third price cut in three months.
Nor is Baoshan alone in price [...]

Lakshmi Mittal Looking To Expand Further In China

ArcelorMittal makes one in every seven tonnes of steel produced outside China, but only one twentieth as much of that made inside the country. So the world’s biggest steelmaker is looking to expand its presence there.
It has already taken a 32% stake in Hunan Valin Tube Steel & Wire and is awaiting Beijing’s approval to [...]

Shougang Blocked From Australian Iron Ore Acquisition

Australia’s Takeovers Panel has given Chinese companies another sharp lesson in the ways of cross-border M&A. This time: no concert parties.
It has ruled that Shougang Concord can’t go ahead with buying a 19.7% stake in Australian iron ore company Mount Gibson because Apac Resources, in which Shougang Hong Kong holds an 18% stake, already owns [...]

Steeling For A Takeover Fight III

“The report that Baosteel plans to buy Rio Tinto is untrue,” says Xu Lejiang, chairman of China’s biggest steel maker, quoted in the China Securities Journal. That is the same Xu who earlier was quoted in 21st Century Business Herald that a bid for the U.K.-based natural resources company was “quite likely”.
So take your pick. [...]