Tata Steel Q1 Net Profit Crashes.

With global steel prices nosediving while production costs rise, Tata Steel, the country’s largest private steel maker, reported net profit of Rs. 702 crore in the June 2019 quarter, falling 63% year-on-year. The company had reported consolidated net profit of Rs. 1934 crore in the year-ago period. Consolidated revenue from operations remained flat in the quarter, at Rs. 35,382.16 crore.

For India, the company reported standalone net profit of Rs. 1567 crore, 15% lower than the Rs. 1856 crore it reported last year. In India, steel prices declined as subdued economic activity, seasonal slowdown and liquidity issues weighed on domestic consumption. Higher net imports further exacerbated the demand supply balance.

The company reported production of 7.15 MMT in the quarter, with India accounting for 4.5 MMT, higher than the 6.45 MMT and 3.64 MMT respectively reported in the same period last year. EBIDTA in its India business fell 4.71% to Rs. 5117 crore in the quarter, from Rs. 5370 crore in Q1FY19. EBITDA/tonne of steel fell to 12,908 from 16,068 in the quarter, while for the consolidated figures crashed from Rs. 11,740 crore to Rs. 8725 crore.

JSW Steel profits fall drastically due to weak demand.

JSW Steel has registered 56.4% fall in its Q1 of FY19-20 (April-June) consolidated net profit at Rs 1,028 crore on the back of lower sales volumes due to subdued steel demand. The company had reported profit of Rs 2,366 crore in the same period last fiscal.

Even though the company maintained its annual guidance in production, which was up three percent, its sales were down by two percent. Revenue of the company declined 3.4 percent at Rs 19,812 crore against Rs 20,519 crore.

The demand slowdown has led to higher inventory levels. While overall, the inventory was at 1.2 million tons, up 3 lakh tons from a year ago, the finished goods inventory increased to 25 days, from the otherwise 20 days.

But the company is hopeful of demand picking up in the coming quarters on the back of higher Government spending on infrastructure.

Iron ore prices set record

Iron ore market is hotting up in India. Following a rise in shipping freight rates and railway charges, iron ore prices (high grade) in the spot market have touched a record high of $175 a tonne.

Another reason for the price rise is increased demand from China. The rise in demand is due to port congestion in Brazil and Australia, the top two iron ore suppliers to China.

Federation of Indian Mineral Industries (FIMI) said the port congestion has led to increase in shipping freight rates.

The freight rate for Indian iron ore has touched $46 a tonne in October from $35 a tonne in September, up 28 per cent.

According to FIMI, ships have to wait for a longer period at the Brazilian and Australian ports. The port congestion at these countries has impacted the freight rates due to slow movement of ships.

Exporters are paying more surcharges to the Indian Railways since the last 30 days. The Indian Railways has increased the yard congestion surcharge on iron ore by 11 percentage points to 35 per cent.

This is the second hike in yard congestion surcharge this year. The busy season surcharge has also gone up to 7 per cent from 6 per cent.

Shipping freight prices and local railway prices are both included in the international spot iron ore price. Chinese steel mills, however, are still buying Indian iron ore because of the huge demand.

During November every year, the Chinese steel mills negotiate the iron ore prices for long term lease with Brazil, Australia and India. Prior to the leasing, the mills tend to increase their stocks through spot trading. Consequently, they are willing to pay a higher price before the negotiation begins.

During September, the iron ore price was $155 a tonne as against $140 a tonne in August. Last fiscal, China accounted for 84 per cent of India’s total iron ore exports of 92 million tonne.

Iron ore prices set record

Iron ore market is hotting up in India. Following a rise in shipping freight rates and railway charges, iron ore prices (high grade) in the spot market have touched a record high of $175 a tonne.

Another reason for the price rise is increased demand from China. The rise in demand is due to port congestion in Brazil and Australia, the top two iron ore suppliers to China.

Federation of Indian Mineral Industries (FIMI) said the port congestion has led to increase in shipping freight rates.

The freight rate for Indian iron ore has touched $46 a tonne in October from $35 a tonne in September, up 28 per cent.

According to FIMI, ships have to wait for a longer period at the Brazilian and Australian ports. The port congestion at these countries has impacted the freight rates due to slow movement of ships.

Exporters are paying more surcharges to the Indian Railways since the last 30 days. The Indian Railways has increased the yard congestion surcharge on iron ore by 11 percentage points to 35 per cent.

This is the second hike in yard congestion surcharge this year. The busy season surcharge has also gone up to 7 per cent from 6 per cent.

Shipping freight prices and local railway prices are both included in the international spot iron ore price. Chinese steel mills, however, are still buying Indian iron ore because of the huge demand.

During November every year, the Chinese steel mills negotiate the iron ore prices for long term lease with Brazil, Australia and India. Prior to the leasing, the mills tend to increase their stocks through spot trading. Consequently, they are willing to pay a higher price before the negotiation begins.

During September, the iron ore price was $155 a tonne as against $140 a tonne in August. Last fiscal, China accounted for 84 per cent of India’s total iron ore exports of 92 million tonne.

Maruti says high metal prices hurting

Maruti Suzuki India Ltd aims to cut costs and improve productivity to offset a rise in metal prices, its chief executive said on Wednesday.

“Prices of not only steel but aluminium, copper are rising and it is hurting car makers,” Shinzo Nakanishi told reporters after launching a new car model, the Swift Dzire.

The car will be priced at between Rs 449,000 and Rs 590,000 ($11,197-$14,713) for petrol versions and between Rs 539,000 and Rs 670,000 for diesel variants.

Maruti, which has nearly half the Indian market with such popular models as the Alto and the Swift hatchback, is 54.2% owned by Suzuki Motor Corp.

                                                                                        Source: http://economictimes.indiatimes.com

China’s steel output

China’s steel output, already the world’s largest, is expected to rise to nearly one bln tons per year by as early as 2015, said an Australian government official.China, which this year is expected to produce around 480 mln tons of steel, is seen doubling that figure to nearly one bln tons within eight years, said Stuart Smith, deputy secretary general of Western Australia’s Department of Industry and Resources.

Speaking at an industry conference here, he said his state, Australia’s largest producer of the major raw materials used in steelmaking, is hoping to tap around half of China’s iron ore import market by that time.

Smith said China is expected to import a total of over 800 mln tons of iron ore in 2015, mainly from Australia, Brazil and India, with imports comprising well over half of China’s total iron ore demand then.

                      SOURCE:http://www.iii.co.uk/news/?type=afxnews&articleid=6363799&action=article

Steel

Steel is an alloy consisting mostly of iron, with a carbon content between 0.2 and 1.7 or 2.04% by weight (C:1000–10,8.67Fe), depending on grade. Carbon is the most cost-effective alloying material for iron, but various other alloying elements are used such as manganese, chromium, vanadium, and tungsten.[1] Carbon and other elements act as a hardening agent, preventing dislocations in the iron atom crystal lattice from sliding past one another. Varying the amount of alloying elements and form of their presence in the steel (solute elements, precipitated phase) controls qualities such as the hardness, ductility and tensile strength of the resulting steel. Steel with increased carbon content can be made harder and stronger than iron, but is also more brittle. The maximum solubility of carbon in iron (in austenite region) is 2.14% by weight, occurring at 1149 °C; higher concentrations of carbon or lower temperatures will produce cementite. Alloys with higher carbon content than this are known as cast iron because of their lower melting point.[1] Steel is also to be distinguished from wrought iron containing only a very small amount of other elements, but containing 1–3% by weight of slag in the form of particles elongated in one direction, giving the iron a characteristic grain. It is more rust-resistant than steel and welds more easily. It is common today to talk about ‘the iron and steel industry’ as if it were a single entity, but historically they were separate products

Iron Properties

Iron, like most metals, is not usually found in the Earth’s crust in an elemental state.Iron can be found in the crust only in combination with oxygen or sulfur. Typical iron-containing minerals include Fe2O3—the form of iron oxide found as the mineral hematite, and FeS2—pyrite (fool’s gold). Iron is extracted from ore by removing the oxygen by combining it with a preferred chemical partner such as carbon. This process, known as smelting, was first applied to metals with lower melting points. Copper melts at just over 1000 °C, while tin melts around 250 °C. Cast iron—iron alloyed with greater than 1.7% carbon—melts at around 1370 °C. All of these temperatures could be reached with ancient methods that have been used for at least 6000 years (since the Bronze Age). Since the oxidation rate itself increases rapidly beyond 800 °C, it is important that smelting take place in a low-oxygen environment. Unlike copper and tin, liquid iron dissolves carbon quite readily, so that smelting results in an alloy containing too much carbon to be called steel.

Steel prices raised on the quiet

   A day after Minister for Steel, Chemicals and Fertiliser Ram Vilas Paswan told Parliament that steel prices would come down by Rs 500 a tonne on account of the 2 percentage point reduction in Cenvat, makers of flat and long products quietly raised prices by Rs 1,500 to Rs 3,000 a tonne on March 4. 

Producers have raised prices by Rs 1,500 to Rs 3,000 a tonne for long products, which are used in the construction industry. For flat products, which go into consumer durables and automobiles, the increase is Rs 2,500 to Rs 3,000 a tonne. The price increase kicks in with immediate effect and has been implemented by both public and private sector producers. 

However, apart from Tata Steel, the world’s sixth largest steel producer, and cold-rolled and galvanised steel maker Uttam Galva Steels, no producer is officially acknowledging the price rise. 

“We were waiting for the meeting with the steel minister. Even though the agenda for the meeting was review of projects, we were expecting some directive on prices,” said an industry source. 

Paswan, however, told an Assocham meeting in Mumbai yesterday that his ministry would not intervene in pricing decisions owing to the strong criticism it has attracted on this account. 

He, however, qualified the statement by saying that non-interference would hold if steel producers did not raise prices at a higher rate than the rise in input costs. 

With this increase, the ruling price of TMT bars, a widely-used long product segment, now stands at Rs 43,000 a tonne and that of hot rolled coil (HRC) in flat products around Rs 42,000 a tonne. 

Yesterday’s price rise comes a month after steel producers partially rolled back prices in February at Paswan’s behest. Prices had been raised by Rs 600 to Rs 900 a tonne in January and again by an average of Rs 2,500 a tonne in February on account of steep increases in raw material costs such as coking coal and iron ore. Producers were made to roll back prices by Rs 500 a tonne for TMT bars and rounds and Rs 1,000 a tonne for other products. 

Costs between April 2007 and January 2008 had increased by Rs 6,000 to Rs 7,000 per tonne. Government-owned NMDC Ltd, the main domestic supplier of iron ore, raised prices 48 per cent in October and another increase of at least 65 per cent is expected in April, in line with the international iron ore prices. 

Most steel producers without captive mines source their iron ore from NMDC. 

Spot coking coal prices between April and February have almost doubled and international companies are looking at a 40 to 50 per cent increase in prices from April 2008.  

Source: Business Standard (Edited) 

Industrial SAW and BLADES

The circular saw is a metal disc or blade with saw teeth on the edge as well as the machine that causes the disk to spin. It is a tool for cutting wood or other materials and may be hand-held or table-mounted. While today they are almost exclusively powered by electricity, larger ones, such as those in “saw mills”, were traditionally powered by water turning a large wheel. Most of these saws are designed to cut wood but may be equipped with blades designed to cut masonry, plastics or metal although there are purpose-made circular saws specially designed for particular materials.
A band saw is an electric or pedal-driven saw with a blade consisting of a long, narrow, flexible band of toothed metal. The band rides on two wheels in the same vertical plane with a space between them. Band saws can be used for woodworking, metal working, or for cutting a variety of other materials, and are particularly useful for cutting irregular shapes. The radius of a curve that can be cut on a particular saw is determined by the width of the band
                                                                        We at BTC manufactures and maintains Stock of different Kinds of saw in all the standard size as well as we also manufacture special kind of saw on customer demand.