Steel-maker shares in Asia Monday started to show some signs of life on market expectations for higher steel prices and stronger demand for the metal, but investors should remain wary of risks associated with overproduction and the “soft footing” of some global economies, analysts said. Asian steel demand will likely reach 1 billion metric tons by 2013, compared with 808 metric tons in 2009, according to analysts at HSBC. “This growth will shift Asia into a tightly balanced market over the next 4 years, from a net exporter position in the past,” they said in a note to...

A slump in commodities last week was caused by a strengthening dollar and raw materials remain “hot- ticket” investments for 2010, Morgan Stanley said. The Reuters/Jefferies CRB Index of 19 raw materials fell to the lowest since October last week. The decline is a “buying opportunity,” Hussein Allidina, head of commodity research at Morgan Stanley, said at a sugar conference in Dubai today. “The recent sell-off in commodities will pass,” he said. “It’s a general risk reduction and not the same that surrounded the Lehman collapse.” Copper...

Hebei Steel estimated that the net profit was 470mln-940mln yuan in 2009, down 60%-80% year on year. The decreasing of the performance in 2009 was mainly due to the larger steel price decline than the raw materials. Heibei Steel announced on February 6 that the company expects that the net profit reached 470mln-940mln yuan in 2009, down 60%-80% year on year. The company’s net profit was 2,351mln yuan in the same period of 2008, 0.34 yuan per share. The performance in 2009 dropped sharply from 2008, which can attribute to the larger steel price drop than the raw materials. Source: Meta...

China produced 6.12 million metric tons of sugar in the crop year to January 31. According to China Sugar Association, this is an increase by 4.5 percent from previous year. Cane sugar output reached 5.53 million tons from Oct. 1 through the end of January, up from 5.03 million tons during the same period in 2008-09, while beet sugar totalled 590,600 tons, down from 822,500 tons, it said in a statement. However, the association has forecast output for 2009-10 to fall to 12 million tons from 12.43 million tons in 2008-09 due to shrinking acreage and erratic weather. Sugar crushing in China u...

India could face a ‘coal shock’ sooner than later if the power utilities do not wake up to the fuel security risks from stagnating domestic production and start planning long-term coal imports to meet the fuel shortage. Although big power producers like NTPC are already meeting domestic coal shortages with imports, they have not shown any urgency to get into long-term import contracts. Meanwhile, China’s coal demand has overtaken its domestic production, forcing the world’s largest coal producer to import coal. Till 2006, China was a net exporter of coal. The global ...

Revised Coal Laws will for the first time set the industry access system for the sector, the China Securities Journal reported Monday, citing sources with the China National Coal Association. The source also said that the revision of the Coal Law and the establishment of the Energy Law were listed in the working plan of the State Council. Sources with the National Energy Administration revealed that some chapters of the Energy Law would be adjusted based on China’s energy strategic plan and the global climate change, according to the report. The draft of the Energy Law involves sustai...

Shanxi Coking Coal Group kept good development momentum in 2009 and the main economic index set record highs. The raw coal production achieved 80.7884mln tons, up 497,400 tons or 0.62%; the fine coal output was 34.76mln tons, which finished 107.28% of original plan. The company made sales revenue of 75.65bln yuan, up 3.852bln yuan or 5.37% and the tax payment is expected to reach 15bln yuan, which is equal to last year’s. In all provincial enterprises of Shanxi, the sales revenue of Shanxi Coking Coal ranks the second place in 2009, the production of raw coal and fine coal as well as ta...

Shenzhen’s Yantian Port Holdings posted a net profit attributed to shareholders of parent company of CNY461 million (US$67.5 million) last year, falling 19.55 per cent compared to the prior year, Xinhua reported. Revenue dropped 6.6 per cent to CNY401 million. Earnings per share was CNY0.37. Weighted average rate of return on equity was 11.73 per cent. The company explained that the decline in profit was the result of a fall in container throughput and low profit in container handling led by downturn and the diversion of container cargo to the new Yantian phase 3 project. Source: Sche...

Tariff increases approved two months ago by the Port of Corpus Christi over the objection of industrial customers are on the chopping block Tuesday. Local refineries say those tariffs are an undue burden on their operating costs during an industry downturn. Port commissioners who voted in favor in December say the tariffs are an indirect but crucial method for funding the port’s share of vital projects such as the widening and deepening of the Corpus Christi Ship Channel, engineering and design of the long-anticipated La Quinta container cargo terminal and extending La Quinta Channel. ...

Deng Qilin, president of the China Iron and Steel Association (CISA) and also general manager of Chinese steelmaker Wuhan Iron and Steel Co. (WISCO), stated on February 6 that efforts would be made to strengthen discipline in China’s iron ore importing activities so as to improve China’s efforts at the annual iron ore price talks. In this context, Mr. Deng said that speculation on iron ore imports should be punished by the government. The CISA official said that China would actively implement an agent system for importing iron ore so as to regulate the quality, quantity, price an...

Prices for coal shipped from South Africa’s Richards Bay, the continent’s biggest export facility for the fuel, posted their first gain in four weeks on speculation that banks are more active in the market. Export prices advanced $1.20, or 1.4 percent, to an average of $84.60 a metric ton in the week to Feb. 5, according to McCloskey Group Ltd. Prices rose last month to the highest since November 2008. The terminal is the biggest source for Europe of coal burned for power and is owned by South Africa’s largest exporters of the fuel, including BHP Billiton Ltd., Anglo America...

Container shipping markets have been more active than expected in early 2010, but that is apparently linked to restocking and activity is likely to taper off, the head of A.P. Moller-Maersk said. Chief Executive Nils Smedegaard Andersen told Reuters in an interview that freight rates have recovered gradually from a bottom hit around May 2009. “We are still not at a level where the industry is really making decent returns, but at least we are getting into a territory that is acceptable,” Andersen said. The global economic downturn hit shipping markets hard and knocked volumes and...

Keppel Offshore & Marine Ltd’s (Keppel O&M) specialised shipbuilding arm, Keppel Singmarine Pte Ltd (Keppel Singmarine) has clinched three newbuilding contracts totaling about S$140 million. The first contract was awarded to Keppel Singmarine by Dutch dredging and marine contractor, Royal Boskalis Westminster N.V. (Boskalis) for the construction of a 159-metre long rock dumping fall pipe vessel to be completed in late 2011. Rock dumping fall pipe vessels are capable of depositing large amounts of rocks in deep waters with great precision to protect and stabilise cables and oi...

The Board of Directors of ASL Marine Holdings Ltd. (the “Company” or “ASL Marine”) is pleased to announce that the Company’s wholly-owned subsidiary, ASL Shipyard Pte Ltd has secured a new shipbuilding contract from an oversea customer worth approximately S$38.5 million for one unit of Diving Support Vessel with fire fighting standby and rescue capabilities. The vessel is expected to be completed in the fourth quarter 2011. Revenue from the new shipbuilding contract will be recognised over the contract period in accordance with the Group’s revenue recognit...

Ocean freight rates continue to be below the required level to cover basic operating costs or transportation costs. Considering that the current levels are unsustainable for the long term, OOCL will implement a General Rate Increase with effect from April 1st, 2010. The increases are required in order to maintain a viable service level and a comprehensive liner network. Ocean rates for cargo loading or discharging at USA or Mexican ports will be increased as follows: April 1st 2010:??? $400 per 20’ container and $500 per 40’ container Ocean rates for cargo loading or dischargin...

Rickmers Trust Management Pte. Ltd. (“RTM”), Trustee-Manager of Mainboard-listed Rickmers Maritime (the “Trust”), yesterday announced the financial performance of the Trust for the fourth quarter and financial year ended 31 December 2009 (“FY2009”). FINANCIAL AND OPERATING REVIEW For the quarter ended 31 December 2009 (“4Q2009”), charter revenue registered a healthy improvement of 29% to US$38.13 million, compared with US$29.56 million for the same period last year. On a full year basis, charter revenue rose 43% to US$146.28 million from US$...

Hapag-Lloyd, the world’s sixth-largest container carrier, is set to move from financial intensive care into operational convalescence. According to Hapag-Lloyd insiders, the shipping line moved out of the red toward the end of 2009 on the back of rising cargo volume and firming freight rates — especially in its key Asia-Europe trades — that signal container shipping is emerging from its deepest-ever recession. The German carrier will again be a drag on TUI, its largest shareholder, when the tourism giant on Feb. 15 publishes its results for the final quarter of 2009. Hapag-...

Energy firm Santos has lifted its proved and probable (2P) reserves estimate by 42 per cent and said it now has more than enough gas for the first phase of its $7.7 billion gas export project. Santos, a partner with Malaysia’s state-oil firm Petronas in the proposed Gladstone liquefied natural gas (LNG) project using coal seam gas, said the reserves upgrade brings its total reserves to 1.44 billion barrels of oil equivalent at the end of 2009. “The reserves build for Gladstone LNG was ahead of target and exceeded the reserves requirement for the first train,” Santos said in...

Russia’s LUKOIL plans to invest in Uganda’s nascent petroleum industry as foreign interest in the country’s newly found oil continues to mount, a statement from the Ugandan president’s office said Monday. The east African economy is under a growing spotlight by petroleum investors as leading industry players scramble for oil reserves discovered in the west of the country. A delegation from the company led by Vice President for Business Development, Andrei Sapozhnikov, met Uganda’s President Yoweri Museveni on Friday to discuss their plans, the statement said. &...

State oil and gas Pertamina will export lubricant oil to China amidst growing concerns that the Asean-China FTA may hamper local industries to develop. Pertamina believed before the first half of 2010 ends, the oil will have been available in China’s markets. Pertamina Lubricant Oil Vice President Hendrato Tri Y said on Monday in Jakarta, Feb 8, that China may be superior over Pertamina as regards prices. However, Pertamina will provide the market with products of better quality compared to Chinese local products. “The prices there are lower. But we believe in the quality of our ...