Nissan China July sales up by 1.8%

Nissan Motor Co, Japan's No 2 automaker by volume after Toyota Motor Corp, has said that its auto sales in China increased 1.8% year on year to 99,000 units in Jul this year, sources reported. The figure for last month was less than the 101,000 units it sold in Jun this year. In the first seven months of this year, the company sold a total of 682,500 vehicles in China, 7.1% less than in the corresponding period of last year. In 2012, the company's auto sales in China fell more than 5% year on year to 1.18 million units

  Siemens continuous bloom caster up and running at Zenith Steel in China

In July, Siemens Metals Technologies put a continuous bloom caster into operation at Chinese steel producer Changzhou Zhongtian Iron & Steel. The plant has an annual production capacity of around 1.3 million tonnes of blooms. The five-strand casting plant built by Siemens is designed to produce round blooms with diameters ranging from 360 to 600 millimeters. It can cast structural steels, high carbon, alloyed and low alloyed steels, as well as pipe steel grades, at a speed of up to 0.8 meters a minute. The continuous casting plant has a machine radius of 14 meters and a metallurgical length of 32 meters. It is equipped with a curved casting mold, a DynaFlex hydraulic mold oscillator and LevCon mold level control. The drawing unit for rectangular blooms consists of three segments, and works with DynaGap Soft Reduction, preventing center segregation and ensuring that the interior quality of the blooms is homogeneous. Siemens designed the continuous casting plant, supplied key components and technology packages, the complete basic and process automation, as well as the VAIQ quality management system. The scope of services also included advisory services during construction and commissioning, and customer training. Up to now Zenith has only produced billets. Blooms with diameters of 360, 400 and 500 millimeters are further processed into seamless pipes, while those with a diameter of 600 millimeters are used to produce forging steels. Zenith Steel belongs to China´s Top 20 steel producers. It is privately owned and runs an integrated iron and steel works in Changzhou, Jiangsu Province. The company's steel works has three BOF converters with a production capacity of 10 million metric tons of steel per year. Zenith Steel produces a wide range of end products, including steel pipes, bearing and spring steels, as well as a range of structural steels.

  Lingyuan Steel sees net profit of RMB 36.92 million in HI

On August 12, Liaoning Province based Chinese steelmaker Lingyuan Iron and Steel Co. (Lingyuan Steel) issued its financial results for the first half of the current year. Accordingly, in the first half of the year Lingyuan Steel achieved an operating revenue of RMB 7.33 billion (USD 1,197 billion), up 10.96 percent, while its net profit for the period was RMB 36.9273 million (USD 6.03 million), up 115.92% both compared to the first half of 2012. In the first half this year, Lingyuan Steel produced 2.4974 million tonne of crude steel, 2.2209 million tonne of pig iron and 2.4768 million tonne of finished steel, up 46.4%, 47.28% and 43.39% respectively, all on year-on-year basis.

  Bengang Steel Plates posts net profit of RMB 167 million for HI

On August 12, Liaoning Province-based Chinese steelmaker Bengang Steel Plates Co a subsidiary of Benxi Iron and Steel (Group) Co, issued its financial results for the first half of the current year. Accordingly, in the first half of the year Bengang Steel Plates achieved an operating revenue of RMB 22.5 billion (USD 3.68 billion), while its net profit amounted to RMB 167 million (USD 27.28 million), up 15.36% year on year. The net profit for the first half this year is 2.4 times higher than the net profit of RMB 69.379 million (USD 11.33 million) recorded for the whole year of 2012, due to the net loss incurred in the second half last year.

  Price rally surges in Chinese steel market

Delight has engulfed the steel market in China with sustained rally in steel price. Resounding rally in steel price by over 1% has fuelled buying mixed with pinch of speculation. Climb down in steel production MoM along with destocking of flat steel has kept the buying chugging along. HRC inventory depleted for the 10th consecutive week standing at 4.1758 million tonnes. Upswing in iron ore and coke levels recently along with strong USD has hiked the cost base . Backed by optimism steel majors have hiked price for September with Bao steel revising it by CNY 150 per tonne (USD 26 per tonne) for HRC and CNY 120 per tonne ( USD 21 per tonne). Earlier Wuhan had already increased price for flat product. Long product rally has been bubblier with 2% gain in last week alone fixed asset investment and economic stimulus picking up. Major long steel producers kept the rates of rebar hiked due to stable demand from traders and costlier materials. Shangdong has increased September price by CNY 70 per tonne (USD 11 per tonne) of rebar grades HRB400 and HRB335. Most market players agree that in the second half of August the bullish trend in the marketplace will remain in effect, and upward adjustments of producers' prices will continue.

  Chinese July motorcycle sales down by 1.9%

According to the latest statistics released by the China Association of Automobile Manufacturers, China's motorcycle sales fell 1.9% year on year to 1.87 million units in Jul this year. The sales last month reflected a decline of 5.8% from Jun. In the first seven months, the country's motorcycle sales fell 2.3% year on year to 13.33 million units. In Jul, the country's motorcycle exports fell 5.6% from Jun to 799,400 units. China exported a total of 5.43 million motorcycles in the first seven months, 3.2% more than in the same period of last year, and export value rose 4.4% year on year to USD 2.94 billion.

  E-commerce might be the last straw for China Steel Industry

As per statistics from China Iron and Steel Association, China steel industry has suffered a loss of at least more than CNY 10 billion in 2012 deducting income from investment and depreciation despite of a profit of CNY 1.6 billion in 2012. Many large and medium-sized steelmakers including Ansteel and Valin Steel had a loss of more than CNY 3 billion last year. The profit rate was merely 0.9% in the first quarter of this year although the whole industry enjoyed a profit of about CNY 2.5 billion which could be ignored compared to asset of CNY 4.3 trillion. The rise in steel and raw materials price during dull consumption season gives a glimmer of hope to China steel market that depressed for half a year. However, the rebound seems to be fragile for steel traders from Southeast China's Fujian province, who have experienced drastic fluctuations as overcapacity continues. In fact, the problem is worsening in view that daily production of China's large and medium-sized steel mills hit a new high in late June. Reshuffle in China steel industry is far from over, therefore, many steel mills turn to build storage& logistics companies across the country and set up e-commerce platform.

  Baosteel inks contract for supply of CR annealing furnace for Zhanjiang base

Chinese steelmaker Baosteel has announced that a contract has been signed for the supply of a 2,030 mm cold rolled continuous annealing furnace for its new Zhanjiang iron and steel base. The 2,030 mm cold mill unit is a key project for Baosteel's Zhanjiang steel base, with a designed annual output capacity of 2.2 million tonne. Construction work on the project will begin in September this year, while hot run tests will start in June 2016.