Chinese nickel prices seen down, investors may stock up-trade

Prices may fall to 150,000 yuan in next 1-2 months

* Investors may stock up after making good margins previously

By Polly Yam

HONG KONG, June 14 (Reuters) - Chinese spot nickel prices may drop in the next one to two months as stainless steel mills cut demand, but this may allow investors to stock up the metal that generated profit margins of more than 25 percent in the last two years, trade sources said.

Spot nickel prices NI-1-CCNMM dropped on Tuesday to 7-month lows around 171,000 yuan ($26,377) as demand fell from stainless steel producers, who mopped up the bulk of China's annual nickel demand of more than 500,000 tonnes in 2010 and 2011. Weak international prices also pressured Chinese prices.

Three-month nickel on the London Metal Exchange hit its lowest since November 2010 at $22,120 a tonne on Monday, as worries about a growth slowdown and soft stainless steel demand in Europe triggered sales. The price stood at $22,230 at 0735 GMT on Tuesday.

"Some investors and merchants may stock up nickel if prices drop to about 150,000 yuan," said a trader at a large Chinese trading and investment firm in Shanghai, who saw the price falling to that level as early as July given that stainless steel mills were not keen to buy spot nickel now.

He added that some investors had built up nickel stocks when prices were around 150,000 yuan in June 2010 and sold the stocks above 200,000 yuan in the first quarter of 2011.

That was not the first time Chinese investors pocketed hefty profits from nickel, traders said. In late 2008 and early 2009, many investors had stocked up refined nickel after the global financial crisis drove Chinese prices below 90,000 yuan.

STAINLESS STEEL DEMAND

In China, stainless steel producers typically conduct yearly repairs in the summer as products plants cut production in June-July, hurting demand for nickel, industry sources said.

"Usually stainless steel mills do repairs in July-August as demand (for stainless steel) falls," said Chen Shufang, analyst at state-backed research firm Antaike.

Nickel consumption has also been hit by China's power shortages and an increased demand from stainless steel producers for nickel pig-iron, a cheaper alternative to the refined metal, traders said.

Power shortages have cut production at products plants in Zhejiang, said a senior executive at a stainless steel tubes producer in the eastern province, a major producer of stainless steel and products in China, the world's top stainless steel maker.

Antaike's Chen said China's tight credit policy had also been making demand for stainless steel weaker than many had expected so far this year.

Chen did not provide a demand estimate for 2011.

Last week, Chinese steel giant Baosteel's stainless steel unit said it expected stainless steel consumption in China to grow 5 to 7 percent per year over the next five to 10 years.

Chen expects China to produce 14 million tonnes of stainless steel in 2011, which will be a rise of 13 percent from 12.4 million tonnes in 2010, due to new capacity.

She said the 2011 output estimate would be valid even if some stainless steel mills consider cutting output in the second half of this year.

"Demand has increased, but output has risen faster," said a senior executive at China Stainless Steel Exchange, a local marketplace in Zhejiang's Wuxi city, a major base metals and steel trading hub in China.

The 304 stainless steel cold-rolled coil, the most popular type in the Chinese market, traded at 22,700 yuan per tonne on Monday, down near 2 percent from end-May and a fall of 7 percent so far this year, data on the website showed. (www.exbxg.com)

Twenty-six warehouses in Wuxi held 228,602 tonnes of stainless steel stocks in late May versus 117,519 tonnes in early January. ($1=6.483 yuan) (Editing by Himani Sarkar)


Source:www.reuters.com

China’s Steel Output Rose to Record in May on Property Construction Demand

China steel production rose to the highest on record last month, boosted by construction demand. Crude-steel production from the world’s biggest steel producer rose 7.8 percent to 60.25 million metric tons in May from a year earlier, according to data released today by the Beijing-based National Bureau Statistics.

Construction of new properties in China, the world’s second-largest economy, climbed 24 percent in the first five months, even as the government tried to slow the economy. China wants to cool the real-estate market and rein in bank lending to counter inflation.

“China’s tightening measures have had little impact on builders,” said Henry Liu, a Hong Kong-based analyst with Mirae Assets Securities Ltd. “Construction at China’s second and third-tier cities remain active.”

Chinese prices of reinforcing bars, used to build homes, bridges and roads, have climbed for four straight weeks to 5,036 yuan ($777) a ton as of yesterday, according to researcher Beijing Antaike Information Development Co. Prices of hot-rolled coil, a benchmark flat product, fell 0.5 percent in the same period to 4,850 yuan.

Smaller steelmakers in China are likely to benefit from the stronger prices for construction steel, while bigger mills are suffering because they make flat products used by automakers and appliances, Liu said.

Baoshan Iron & Steel Co., China’s biggest publicly traded steelmaker, cut product prices by between 100 yuan and 200 yuan a ton for July delivery on June 9 because of slowing demand from automakers and appliances companies.


Source:www.bloomberg.com

FORD MOTOR URGES US ITC TO LIFT TARIFFS ON AD DUTIES ON HOT ROLLED STEEL

Detroit News Washington Bureau reported that Ford Motor Co has urged a US panel to lift tariffs on antidumping duties on hot rolled steel from Brazil, Japan and Russia.

As per report, Mr Paul Vandevert international trade counsel for Ford urged the US International Trade Commission to lift the duties on foreign steel.

Mr Vandevert said that "If we are going to succeed, our suppliers, including our steel suppliers, must provide us with the best in materials and parts. At Ford we believe that innovation comes from healthy and fair competition. Just as we have to be world class with our product, all suppliers up the chain must face the world's best competition as well."

Mr Vandevert said that Ford's partnership with US steel producers is critical to Ford's future. He added that "The restructured steel industry is ready to face competition. It has weathered the worst recession in 70 years, and is making money again. It has shown that it can hold prices up even in the sharpest downturn, and that it can pass through high raw materials prices."

But a dozen senators wrote the ITC this week urging them not to lift the duties, including Senators Mr Sherrod Brown, D Ohio, Mr Rob Portman, R Ohio, Mr Carl Levin, D Detroit and Mr Debbie Stabenow, D Lansing.

They noted that steel imported from Brazil, Japan, and Russia have fallen sharply. They wrote that "We urge the Commission to continue this relief so that the domestic industry does not once again face the kind of devastating harm that it suffered before trade relief was provided."

They noted that at the peak imports from Brazil, Japan, and Russia totaled 7 million tonnes. As a result, their share of the US merchant market more than quadrupled, from 5% in 1996 to 21% in 1998.

The senators wrote that "While the performance of the industry has improved as economic growth has resumed following the recent recession, the industry is still in a fragile state."

Michigan is home to steel mills, including Severstal North America's mill in Dearborn. The company that provides steel to Ford and General Motors Co asked the Obama administration for a USD 730 million loan to produce light weight, higher strength steel.

The hot rolled steel industry had lost USD 285 million before the orders were renewed in 2005. Since then, the industry has made USD 19.7 billion and hot rolled steel prices are up nearly 30% in 2011.

Mr Vandevert said that "We have a restructured, competitive US industry that has proven itself. Foreign steel mills have great opportunities in growing markets in their own backyards. There is no clear reason for them to ship large volumes to the United States, and the US industry has proven that it can face competition. We urge you to revoke the orders."

(Source: steelguru.com)

STEEL PRICE WITNESS A REBOUND DUE TO DECLINING INVENTORY

Steel price is going through a round of rebound as demand peak season is coming, consuming inventory on steel market.

Data by Mysteel showed steel price of North China market steadily moved up on April 6th with that of South China edging up and of East China pushing up in trading session. Rebar futures closed at CNY 4874 per tonne, up by CNY 98 per tonne d on d, despite PBOC raised the interest rate by 0.25% again. It is analyzed that US dollar index was weak, bolstering commodities prices.

The overall trend of steel market in Mar was downtrend, finally witnessing a rebound around Ching Ming Festival. It is believed that downstream purchase became the main supporting factor, cutting steel inventory for consecutive four weeks.

Before Ching Ming Festival, construction steel inventory in main cities was 9.4515 million tonnes, down 4.38% WoW moving down quicker than previous week, indicating demand became stronger than before.

At the same time, raw materials prices showed a rebound, esp. iron ore, for instance, 63.5% Indian fine ore quoted around USD 181 to USD 184 per tonne on dry basis, up 7% w-on-w, providing support to steel prices.

Continuous high output may dampen market sentiment, according to China Iron and Steel Association, average daily output of crude steel in mid March was 1.945 million tonnes, up 2.18% comparing with previous ten days, reaching record new high again. But some research report by securities companies showed the inventory on producers, traders and downstream enterprises’ sides was low, meaning most of products were mainly used in real consumption. It is estimated that real demand plus restock may cause production shortage, pushing up industrial profits.

(Sourced from www.mysteel.net)

SENATORS CALL FOR U.S. STEEL INDUSTRY TRADE RELIEF

 A dozen U.S. Senators called for trade relief for U.S. steel producers, saying the industry is hurt by unfair practices by steelmakers in places such as Brazil, Japan and Russia.

U.S. Senators Sherrod Brown and Rob Portman, both from Ohio, along with more than a dozen of their Senate colleagues, are calling for relief for the U.S. steel industry.

The Senators sent a letter to the chairman of the U.S. International Trade Commission in advance of an April 6 hearing to determine whether hot-rolled steel imports from Brazil, Japan, and Russia are having a negative impact on the domestic hot rolled steel industry.

“The steel industry is responsible for thousands of good-paying, middle-class jobs in Ohio and elsewhere across America,” Brown said, in a statement. “Surging imports of hot-rolled steel from Brazil, Japan, and Russia puts those important jobs in jeopardy.”

The senators claim said several Ohio steel producers will be affected by the commission’s decision including West Chester-based AK Steel Holding (NYSE: AKS), Arcelor Mittal (NYSE: MT), which has operations in Cleveland, and Ohio’s steel pipe and tube producers that rely on U.S. hot-rolled steel as their input to make pipe and tube. Among the other large U.S. steel producers are Pittsburgh-based United States Steel Corp. (NYSE: X) and Charlotte-based Nucor Corp. (NYSE: NUE).

“I hope the ITC extends relief for hot-rolled steel, as they did during the 1990’s, to protect the industry from unfair trade practices from countries like Brazil, Japan, and Russia,” Portman said. “The steel industry is vitally important to Ohio’s economy and at a time when unemployment remains frustratingly high, it is important that we give manufacturers in our state every opportunity possible to compete on a level playing field.”

The letter to the U.S. International Trade Commission was also signed by Senators Dan Coats (R-IN), Bob P. Casey, Jr. (D-PA), Lindsey Graham (R-SC), Mark Pryor (D-AR), Richard Durbin (D-IL), John Boozman (R-AR), Carl Levin (D-MI), Debbie Stabenow (D-MI), Richard Shelby (D-AL), Barbara Mikulski (D-MD), Richard Burr (R-NC), Amy Klobuchar (D-MN), Kay Hagan (D-NC), Tom Harkin (D-IA), and Al Franken (D-MN).

Source : Senators call for U.S. steel industry trade relief | Dayton Business Journal

STEEL WILL PLAY A MAJOR ROLE IN NEW AND EXPANDING ENERGY MARKETS

Washington, D.C. –   As President Obama travels to Philadelphia this week to visit a wind turbine manufacturer and to hold an Energy Town Hall meeting, it is important to note that a material that will commonly be required to secure both new and traditional sources of clean energy is steel.

“Steel will play an important and major role in the President’s goal of diversifying the nation’s energy sources,” Thomas J. Gibson, president and CEO of the American Iron and Steel Institute (AISI), said.  “The average wind turbine and tower, for example, uses over 200 tons of steel,” Gibson said.  “The average high-voltage transmission tower includes about 40,000 to 60,000 pounds of steel, and demand is growing for electrical steels to serve the transmission wire market.   Solar panels also utilize steel, as do steel utility poles that are being used to replace wood poles in a number of regional markets around the country.”

[more...]

The Specifications for the ASTM Bearing Shaft Quality Bar

 

The drive shaft in this motorcycle is sturdy and flexible.

The American Society for Testing Materials publishes quality standards for bearing shafts. Bearings rotate, or turn, around a straight bar or rod, which transmits energy, motion and torque. The rod, or shaft, may contain gears or wheels and end in the propeller of a ship or the drive shaft of an automobile. Specifications for quality bars are precise size, finish and ease of fit within a bearing or within the housing and the load direction of load within.

Automotive

1. Automotive thrust bearings and contained shafts are mounted assembled. Quality steel automotive thrust bearing shafts carry heavier loads than polymer bearings, but polymer shafts are chemical resistant and do not corrode or rust. Automotive or truck camshafts are up to 76 inches long in 5/8 inch, 3/4 inch, 7/8 inch, 1 inch, 1 1/8 inch, 1 1/2 inch and 2 inches tapered diameters. Polishing the camshaft removes wear and tear due to high speed and pressure. Thrust chrome and steel axial bearing shafts carry the heavy load at the end of the car's axles.

In 2011, energy efficient automotive shafts range from single bearing and seal to powertrain shafts, which reduce CO2 emissions. The low-friction powershafts reduce emissions and increase fuel economy. The driveshafts reduce CO2 emissions. Light alloys are used for suspension and sealed mechanical assemblies contain hub bearing units.

Aeronautic

2. Jet engines operate at speeds and temperatures which stress maximum performance of mechanical components. Jet engines are scanned with an electron microscope for bearing flakes or fragments because bearing performance in jet engines is crucial to the safety of passengers. Jet engine roller thrust bearings are subjected to high-speed rotating shafts.

Roller thrust bearings respond to internal engine speed and pressure to leverage gyroscopic 15,000-pound loads on the aircraft. If the highly-loaded bearing is chipped or flaked, the bearings must be oiled. Chips or flakes can cause the jet engine to seize. Defective roller bearings or shafts result in loss of the aircraft.

Industrial

3. Turbine thrust bearings separate moving parts and absorb force. Industrial steam turbines may operate in series from a single source of power on the same shaft. Each turbine may have its own shaft linked, or concatenated, to the next shaft. Both methods of linking turbines use anti-friction journals, or shafts.

Elliptical bore axial groove thrust bearings are usually used in steam turbines to improve flow and drain oil to reduce heat. Groove width increases load capacity, one criteria of shaft quality. Industrial steam turbine shafts vary from low pressure to high pressure steam bearings.

Pump Shaft

4. The quality of stainless steel and nickel pump shafts is judged by straightness and size. Bearings support and guide rotating, pivoting, oscillating or sliding shafts. Bearings adhere to exact size dimensions whether the pump is for an oil well or water well. Bearing shafts are ground to a 0.001 to 0.0015-inch tolerance under the dimension of the largest diameter tolerated for a good slip fit.

Pump shafts rotate tightly. The shaft also has a surface finish. The finish allows a round smooth bar, which extends the life of the shaft. Bearings must slide over the shaft with ease and not wiggle with minimum vibration at the shaft.

Read more: The Specifications for the ASTM Bearing Shaft Quality Bar | eHow.com http://www.ehow.com/info_8036971_specifications-bearing-shaft-quality-bar.html#ixzz1GBabRWBR

US raw steel production falls 0.8 percent week-on-week

US raw steel production fell last week (ended March 4) with output decreasing 0.8 percent from the previous week. In the previous week, US raw steel production had increased 1.1 percent compared to the week before.
Total raw steel production in the United States amounted to 1,827,000 nt last week. This figure represents a 0.8 percent decrease from the 1,841,000 nt produced in the prior week, and is up 7.9 percent from the 1,683,000 nt produced in the same week of last year.
The capacity utilization rate of US raw steelmaking facilities was 74.7 in the week ending March 4, compared to 75.3 percent in the prior week and 69.2 percent in the same week last year.

US raw steel production falls 0.8 percent week-on-week

AISI Launches Redesigned Website Featuring Its Steel Network of Websites

Washington, D.C., 3/8/11 – The American Iron and Steel Institute (AISI) has launched a new network of websites that includes a redesign of its flagship steel.org, launch of the brand new smdisteel.org dedicated to the steel markets and a totally new face for North American steel recycling at recycle-steel.org. The Steel Market Development Institute (SMDI), which is a business unit of AISI created in 2008, has unveiled its new website as part of the launch, while the Steel Recycling Institute (SRI), also a business unit of AISI, features a redesign of its website, including expanded content on sustainability and life-cycle analysis.
AISI Launches Redesigned Website Featuring Its Steel Network of Websites