Japan's economic growth and jump on car sales rise demand for metals

 Sahit Muja

Sahit Muja: Japan's economic growth and jump on car sales rise demand for metals.

Japan's economy the world's third-largest economy is set to grow by 2.2. in 2012. Japan's industrial output will rise 3.6 percent in the current fiscal year and 3.2 percent in the next, according to the poll of 27 economists conducted in July.
Japan's crude steel output rose rose by 4.3% YoY to 27.5 million tonnes .

Albanian Minerals forecast increase in demand for special steel ingredients ferrochrome, nickel, chrome ore, iron ore, manganese in Japan during the Q3 and Q4 in 2012.
Albanian Minerals forecast that demand  for special steel products in Japan in the quarter Q3 and Q4 is estimated to be:

For domestic sales 2,300,000 tonnes, for exports: 1,200,000 tonnes, up by 2.5% in domestic sales, up by 2.4% in exports.
There are positive signals in Japan in ferrochrom, nickel, copper, silver and aluminum consumption growth from strengthening of auto sales.

The demand for stainless steel from the automobile manufacturing sector would increase. Japan's domestic new car sales in the period from January to June 2012 jumped 54% YoY to 2.95 million units, the highest in six years.
Domestic passenger car production surged 60% from a disaster hit low 2011 to 781,340 units in May 2012.

Demand for stainless steel in Japan is forecasted to also increase from domestic sectors through to the second fiscal half
Indian silico-manganese price is at $1,200/ton CIF, up $40/ton or about 2% this month . The price for charged Chrome ore,  high - carbon ferrochrom in Japan,  US and Europe  is $1.25/lb Cr .

For Q3 shipments to Japan of low-carbon ferrochrome offered prices is $2.10 - 2.16/lb .  Chinese ferro-chrome remained essentially flat above $1,300 per metric ton. The price of Chinese ferro-moly continues hovering below $22,800 per metric ton.

The price of 304 stainless coil rose by 1.1 percent. The price of 304 stainless steel scrap gained 1.1 percent as well.
The price of 316 stainless coil remained flat  $4,700 per metric ton. The price of Chinese 316 stainless steel scrap remained steady north of $2,600 per metric ton.
Nickel  at $15950 per metric ton.

Sahit Muja
President and CEO
Albanian Minerals, New York

U.S crude steel production up 8.4% in 2012

 Sahit Muja

Sahit Muja: U.S crude steel production up 8.4% in 2012 

Global crude steel production for the 62 countries reporting to the World Steel Association was 128 million tonnes in June 2012.

Global crude steel production in the first six months of 2012 was 766.9 Mt, a slight increase of 0.9% compared to the same period of 2011.

North America and Asia showed an increase of 7.2% and 1.6% respectively (USA 8.4% and China 1.8%) while the EU (27) and South America recorded negative growth of -4.6% and -3.5% each. The US produced 7.3 million tonnes of crude steel is up by 8.4%. June 2012, up by 0.8% .

China’s crude steel production for June 2012 was 60.2 Mt, an increase of 0.6% compared to June 2011.Japan produced 9.2 Mt of crude steel in June 2012, up by 3.5% compared to the same month last year.

South Korea’s crude steel production for June 2012 was 5.9 Mt, an increase of 4.3% compared to June 2011.

In the EU, Germany produced 3.7 Mt of crude steel in June 2012, a decrease of -4.0% on June 2011. Italy’s crude steel production for June 2012 was 2.4 Mt, down by -7.9% on June 2011. In June 2012, France produced 1.3 Mt of crude steel, down by -2.1% compared to June 2011. Spain’s crude steel production for June 2012 was 1.3 Mt, -8.8% lower than June 2011.

Turkey’s crude steel production for June 2012 was 2.9 Mt, an increase of 4.0% compared to June 2011.
Brazil’s crude steel production for June 2012 was 2.7 Mt, -8.5% lower than June 2011.

Albanian Minerals expect that global steel production to hit a record of 1,500 million tons in 2012 and steel market will start recovering firmly in Q3 and Q4 on 2012.

Sahit Muja

President and CEO

Albanian Minerals

New York

China's steel production to hit a record 715 million tons in 2012

 Sahit Muja

Sahit Muja: China's steel production to hit a record 715 million tons in 2012

Albanian Minerals forecast  that China's crude steel output to  increase to 715 million tons this year.
China has become a powerhouse in the global crude steel and stainless steel industry. Chinese steel industry, which now accounts for 42% of world steel production.

World crude steel production reached 1,527 million tons in 2011. China's crude steel output increased 8.9 percent year-on-year to 683.27 million tonnes in 2011.
Albanian Minerals forecast  that demands for iron ore, coal, nickel, chrome ore, ferrochrome to hit a record in China this year.

 China's production of crude stainless steel jumped nearly 2% in the second quarter compared to the first, in response to strong demand.
China's average daily crude steel output hit 2.1 million tonnes in June, 2012 . China's economy grew 7.6 percent in the second quarter of 2012 from a year earlier

China produced 60.21 million tonnes of crude steel in June, up 0.6 percent from 2011.
Steel output for the first six months rose 1.8 percent to 357.2 million tonnes from the same period last year.

China's crude steel output increased 8.9 percent year-on-year to 683.27 million tonnes last year. China, the world's largest stainless steel producer, increased output of the corrosion resistant steel product by 11.9% to 12.6 million tons in 2011.

With recent encouraging economic reports, I believe that the Steel industry is on track for a slow but steady recovery.
Albanian Minerals expect that steel consumption to continue to drive up in Q3 and Q4 of 2012.

Sahit Muja
President and CEO
Albanian Minerals
 New York

Metal Markets: The ferrochrome price is up 17% for the second quarter

Sahit Muja

Sahit Muja: Metal Markets: The ferrochrome price is up 17% for the second quarter

The global ferrochrome price for the second quarter has been settled at $1.35/lb, compared with $1.15/lb in the first quarter. The price was $1.20/lb in the fourth quarter of 2011 financial year.

The Xstrata-Merafe chrome JV recently said it would temporarily close an additional two furnaces at its Wonderkop and Lydenburg smelters from April 1 to the end of May, after adjusting its agreement with State-owned power utility Eskom.

A total of seven furnaces would be temporarily closed at the venture’s Rustenburg, Wonderkop and Lydenburg smelters. The closures were anticipated to result in loss in production of 130 000 ton.

Global demand and prices for chrome ore, ferrochrome, a key ingredient for making stainless steel, is likely to continue to increase.
High energy, oil and gas prices, currency devaluation now set the stage for even sharper increases in the costs for mining and transportation of chrome ore ingredients for ferrochrome.


Strong economic growth and urbanization in China, India, Brazil, Turkey Middle East countries, and other nations are expected to create growing demand for ferrochrome in 2012 . The chrome ore and ferrochrome prices will increase do to strong demand and problems with export ban and the high costs of production.

Also, chrome ore shortages are expected as Zimbabwe has banned the export of chrome ore.
Many chrome ore companies in Kazakhstan, India, Turkey, South Africa, Oman, Pakistan and Albania have stoped mining the chrome ore do to high costs of production.

This will effect the global chrome ore prices and ferrochrome production.The concern over the depleting reserves of the chrome ore in India, the steel ministry has demanded a complete ban on chrome ore exports.

Indian have increased the country’s export tax on chrome ore and concentrate to 30% of the sales price on shipments. Such supply conditions may drive prices of stainless steel, ferrochrome and chrome ore up . Ferrochrome production for metallurgical applications uses more than 90% of the world's chrome ore.

The demand for stainless steel will remain strong, growing at about 10% a year. China is increasing ferrochrome production and preventing any ferrochrome from leaving its shores through an export duty.

Sahit Muja
 President and CEO
 Albanian Minerals
 New York

Global demand for stainless steel to double in manufacturing and green energy sector

 Sahit Muja: Albanian Minerals

Sahit Muja: Global demand for stainless steel to double in manufacturing and green energy sector.

Albanian Minerals expect that demand for stainless steel will double in five years.

Global demand and prices for chrome ore, nickel, iron ore and ferrochrome, a key ingredient for making stainless steel, is likely to continue to increase.
Furthermore, the recent upsurge in oil prices, inflation alongside significant fluctuations in currency prices cannot be overlooked.
High energy, oil and gas prices now set the stage for even sharper increases in the costs for mining and transportation of iron ore, chrome ore and nickel ingredients for stainless steel.

 Strong economic growth and urbanization in China, India, Brazil, Turkey and other nations are expected to create growing demand for stainless steel in 2012 .
The chrome ore and ferrochrome prices will increase do to strong demand and problems with export ban and the high costs of production.
Also, chrome ore shortages are expected as Zimbabwe has banned the export of chrome ore.

Many chrome ore companies in Kazakhstan, India, Turkey, South Africa, Oman, Pakistan and Albania have stoped mining the chrome ore do to high costs of production.

This will effect the global chrome ore prices and ferrochrome production.The concern over the depleting reserves of the chrome ore in India, the steel ministry has demanded a complete ban on chrome ore exports.
Such supply conditions may drive prices of stainless steel, ferrochrome and chrome ore up .

Ferrochrome production for metallurgical applications uses more than 90% of the world's chrome ore.
Stainless steels of various kinds are used in thousands of applications in manufacturing, construction, cutlery, sinks, saucepans, washing machine drums, microwave oven liners, razor blades
cladding, handrails, door and window fittings, street furniture, structural sections, reinforcement bar, lighting columns, lintels, masonry supports
exhaust systems, car trim/grilles, road tankers, ship containers, ships chemical tankers, refuse vehicles, pressure vessels, process piping, platform accommodation, cable trays,  pipelines, surgical instruments, surgical implants, MRI scanners.
Catering equipment, brewing, distilling, food processing, water and sewage treatment, water tubing, and hot water tanks.

The price of the chrome ore and ferrochrome, an essential ingredient in stainless steel, is set to jump after a series of production shutdowns in South Africa, the world’s largest producer
Stainless steel is theoretically 100% recyclability and its long term life makes it an ideal environmental performer much better than many other materials reach the end of its design life.
Stainless steel has many environmental and social benefits. Stainless steel products enable us to lead a healthier life and are cleaner for the environment as well.  
Stainless steel improvements to air quality: the air emissions are always a problem in today’s  world. The greater influx of cars on the road, planes in the air and production factories all add to the problem.
Ways in which stainless can help reduce this problem can be: New catalytic converters use stainless steel for the holding and transportation of catalytic substances help to decrease pollution on motor vehicles, generator sets, forklifts, mining equipment, trucks, buses and trains etc.

Diesel filters are designed to remove smoke and soot particles from the exhaust gas of a diesel engine. Newer versions can consist of up to 90% stainless steel. Diesel filters can filter out 95% of black smoke and 85% of soot particles from the gas produced. Stainless steels excellent temperature resistance, manufacturability and economic properties make it the best option for the filter.
Stainless steel is now being used in many applications which can help to reduce the use of fossil fuels, these can include: Stainless steel condensing boilers have a 100% efficiency rating”
Condensing boilers are today’s most energy efficient heating method, with a 100% efficiency rating. Stainless steel is required because of the condensation that occurs during the process; therefore corrosion resistance is of high importance.
Rooftop solar panels do not just reduce the use of fossil fuels they mean that renewable sources can be used instead. Stainless steel versions can account for a considerable part of the energy needed for the preparation of hot water and room heating. Solar panels can also be integrated into building roofing or cladding possibly adding to its aesthetic appeal.

Fuel cells are a source of energy for the future. Much like a battery the fuel cell converts chemical energy into electrical energy. Working from either natural gas or hydrogen, they generate heat and electricity with only one emission; water. Stainless steel is used for supporting the electrodes which are stronger, easier to manufacture and cheaper than ceramic versions. Fuel cells can be used in a variety of places including in cars and in domestic heating systems alike.
Liquefied natural gas is considered as the world's most environmentally friendly of the fossil fuels as it is a clean source of energy.

 In Japan it accounts for some 10% of their energy supply. The gas is transported at a temperature of -163°C, and this is the reason for stainless steel as it exhibits an increase in tensile and yield strength without loss of ductility at low temperatures. Stainless steel can be used to improve the cleanliness of water.  Stainless steel pipes for drinking systems help to keep water clean and quality standards high. Stainless steel guarantees lasting hygiene and prevents the formation of any medium on which bacteria can grow. Correct grade selection will minimise the risk of any corrosion, meaning there is practically no contamination of water in contact with the stainless steel.

The waste water plants are using stainless steel in the transportation of waste water products, due to the possible corrosive nature of the water. Stainless steels durability and low maintenance also make it the best material to use.
Therefore the reason for stainless steel is to maximise service life and to minimise malfunctioning.
Stainless steels are also being used for piping which is needed to decontaminate waste water before it is filtered back into the rivers and soil. Due to the unpredictable nature of the contaminated water, stainless steel is needed to ensure the sufficient corrosion properties are in place.
Stainless steel is also being used in cities all around the world for recycling collectors. They are corrosion resistant and not only look more attractive than a conventional bin, but they help to keep the environment cleaner as well.
Sahit Muja
President and CEO
Albanian Minerals
New York

Stainless steel production and demand to hit a record in 2012

Sahit Muja, Albanian Minerals, New York

Sahit Muja: Stainless steel production and demand to hit a record in 2012

Global stainless steel production in 2011 was 35 million tonnes, up 7% from 2010.
China's stainless steel production in 2011 was up to near 15 million tonnes, up by about 17% from 2010. The annual growth rate of the production, 17% in 2011.

European stainless steel  production in 2011 was 8 million tons. Japan's stainless steel products near 3 million tons.
Stainless steel does not corrode, rust, or stain with water as ordinary steel does.

Stainless steels of various kinds are used in thousands of applications in manufacturing, construction, cutlery, sinks, saucepans, washing machine drums, microwave oven liners, razor blades
cladding, handrails, door and window fittings, street furniture, structural sections, reinforcement bar, lighting columns, lintels, masonry supports
exhaust systems, car trim/grilles, road tankers, ship containers, ships chemical tankers, refuse vehicles, pressure vessels, process piping, platform accommodation, cable trays,  pipelines, surgical instruments, surgical implants, MRI scanners.

Catering equipment, brewing, distilling, food processing, water and sewage treatment, water tubing, and hot water tanks.
The price of Chrome ore and ferrochrome, an essential ingredient in stainless steel, is set to jump after a series of production shutdowns in South Africa, the world’s largest producer

Furthermore, the recent upsurge in oil prices, inflation in the emerging markets alongside significant fluctuations in currency prices cannot be overlooked.

I expect stainless steel production to hit 40 million tons in 2012.
Global demand and prices for chrome ore, iron ore and ferrochrome, a key ingredient for making stainless steel, is likely to continue to increase in 2012.

High energy, oil and gas prices now set the stage for even sharper increases in the costs for mining and transportation of iron ore and chrome ore ingredients for steel.
 The Chinese steel industry has a record steel output in 2011 to meet soaring demand from infrastructure and social housing projects.

Strong economic growth and urbanization in China, India, Brazil and other nations are expected to create growing demand for steel in 2012 .

The chrome ore and ferrochrome prices will increase do to strong demand and problems with export ban and the high costs of production.
Also, chrome ore shortage is expected as Zimbabwe has banned the export of chrome ore.

Many chrome ore companies in Kazakhstan, India, Turkey, Albania have stop mining chrome ore do to  the winter conditions, this will effect the global chrome ore prices and production.

The concern over the depleting reserves of chrome ore in India, the steel ministry has demanded a complete ban on chrome ore exports.
Such supply condition may drive prices of ferrochrome and chrome ore up in 2012.
 Ferrochrome production for metallurgical applications uses more than 90% of the world's chrome ore.

Sahit Muja
President and CEO
Albanian Minerals
New York

Top ferrochrome producers ENRC received a $2 billion loan by Sberbank of Russia

 Sahit Muja: New York

 Sahit Muja: Top ferrochrome producers ENRC received a $2 billion loan by Sberbank of Russia

Eurasian Natural Resources Corporation announces the signing of a $2 billion loan provided by Sberbank of Russia, has a 5 year term with amortisation
commencing after 24 months.

The new funds will be used for general corporate purposes, including the financing of recent acquisitions and the Group’s extensive CAPEX programme.
Eurasian Natural Resources Corporation is one of the world’s largest ferrochrome producers, supplying the market with a range of high-grade chromium alloy.
Its primary product is high-carbon ferrochrome, with a chrome content of 68%.  Also produces rutile, zircon and ilmenite concentrates.

ENRC is a leading diversified natural resources group, performing integrated mining, processing,energy, logistics and marketing operations. The operations comprise: the mining and processing of
chrome, manganese and iron ore; the smelting of ferroalloys; the production of iron ore concentrate and pellet; the mining and processing of bauxite for the extraction of alumina and the production of
aluminium; the production of copper and cobalt; coal extraction and electricity generation; and the
transportation and sales of the Group's products.

Global ferrochrome production is falling  due to reduced operating capacity, higher energy costs and labor problems.

Ferrochrome producers worldwide settled benchmark price at USD 1.15 to USD 120 per pound.
Albanian Minerals and Bytyci SHPK, Tropoje, Albania expects that steel ingredient ferrochrome will test high prices in 2012 as production fails to keep pace with a jump in global demand for steel.
The current stockpiles of ferrochrome in China, Europe, U.S, Japan, and Russia are too low to fill the gap.

Demand for ferrochrome, which is used in stainless steel to prevent corrosion, is recovering after jump in demand for steel.
Albanian Minerals expects ferrochrome prices to trade higher in 2012 on upward demand from rising growth in stainless steel production.
Also restricted supply of electricity in South Africa and China has resulted in the postponement of a number of planned ferrochrome projects over the next five years.

Sahit Muja
President and CEO
Albanian Minerals
New York