South Korea's Hyundai Steel said on Wednesday it will buy a maximum of 300,000 tonnes of coal per year from Siberian Anthracite of Russia from 2010 for five years to feed its steel capacity expansion.
Both firms have signed a memorandum of agreement for the supply deal in Novosibirsk, Russia, a company spokesman said.
Another South Korean steel maker, POSCO, also signed a five-year contract on Wednesday to buy 1 million tonnes of coking coal and coal products per year from another Siberian miner, Sibuglemet, Interfax news agency reported.
The POSCO contract will also run from 2010, Interfax said.
Hyundai Steel is investing 5.84 trillion won ($5.61 billion) to build its first blast furnace to produce 8 million tonnes of steel annually.
The steel project, set to start operations in 2010, will boost output from the country's second-largest steelmaker by 60 percent.
For this expansion, Hyundai Steel late last year said it would buy 8 million tonnes of coking coal from BHP Billiton for five years, and reached similar deals with Canada's EVCC and Australia's Rio Tinto and Wesfarmers.
Russia's largest miner of coking coal for the steel sector, Mechel, in February agreed to supply up to 300,000 tonnes per year of the fuel to Hyundai Steel.
SourcE: Reuters
Showing posts with label hyundai. Show all posts
Showing posts with label hyundai. Show all posts
Wednesday, September 23, 2009
Thursday, September 10, 2009
BHP Signs Eight-Year Iron Ore Deal With Hyundai
BHP Billiton Ltd has signed an eight-year supply contract to deliver 22 million tonnes of iron ore to South Korea's Hyundai Steel.
BHP Billiton president of marketing Tom Schutte said the deal will strengthen the company's relationship with Hyundai Steel and comes on top of a long term coking coal supply contract agreed last year.
The resources giant was tight-lipped on what price had been arranged with Hyundai Steel.
"Although all commercial terms of the contract remain confidential, as per the contractual agreement, we are pleased to see that the contract satisfies each company's interest," Mr Schutte said.
But Independent resources sector analyst Peter Strachan of StockAnalysis said it was likely the rate would be set at current benchmark rates agreed to by other South Korean steel makers.
Mr Strachan said the agreement was only small for a company the size of BHP Billiton and did not compare to the big deals being done with Chinese steel giants.
"To put that into perspective, 22 million tonnes over eight years is about equal to two weeks of China's imports," he said.
"China is importing, not using but what they import on average, is about 40 million tonnes of iron ore per month."
Hyundai Steel is building a steel works in Dangjin with an annual capacity of eight million tonnes of crude steel.
The first blast furnace plant will being operating from January 2010.
President of Hyundai Steel, Y C Woo, said in a statement the iron ore deal was a further confirmation of the company's strong relationship with BHP Billiton.
Hyundai Steel has now secured a total of 13.6 million tonnes of iron ore to operate the integrated steel works.
Under the new contract, delivery is effective from 2009.
Source: Sydney Morning Herald
BHP Billiton president of marketing Tom Schutte said the deal will strengthen the company's relationship with Hyundai Steel and comes on top of a long term coking coal supply contract agreed last year.
The resources giant was tight-lipped on what price had been arranged with Hyundai Steel.
"Although all commercial terms of the contract remain confidential, as per the contractual agreement, we are pleased to see that the contract satisfies each company's interest," Mr Schutte said.
But Independent resources sector analyst Peter Strachan of StockAnalysis said it was likely the rate would be set at current benchmark rates agreed to by other South Korean steel makers.
Mr Strachan said the agreement was only small for a company the size of BHP Billiton and did not compare to the big deals being done with Chinese steel giants.
"To put that into perspective, 22 million tonnes over eight years is about equal to two weeks of China's imports," he said.
"China is importing, not using but what they import on average, is about 40 million tonnes of iron ore per month."
Hyundai Steel is building a steel works in Dangjin with an annual capacity of eight million tonnes of crude steel.
The first blast furnace plant will being operating from January 2010.
President of Hyundai Steel, Y C Woo, said in a statement the iron ore deal was a further confirmation of the company's strong relationship with BHP Billiton.
Hyundai Steel has now secured a total of 13.6 million tonnes of iron ore to operate the integrated steel works.
Under the new contract, delivery is effective from 2009.
Source: Sydney Morning Herald
Monday, August 10, 2009
Hyundai Steel To Continue Buying Iron Ore From Majors
HYUNDAI Steel will continue to purchase iron ore and coking coal from its existing three major suppliers for the new blast furnace it aims to build after 2012.
“We are planning to sign long-term contracts with our current suppliers for the operation of the third blast furnace,” Oh Myung-suk, executive vice president of Hyundai Steel’s integrated steel project division, said.
For the No.1 and No.2 blast furnaces, Hyundai has secured 98 per cent of its total iron ore demand and 84 per cent of its overall coal needs in five to 10-year contracts with Brazil’s Vale, BHP Billiton and Rio Tinto .
The first delivery of iron ore will arrive on August 23 from Vale and the coal will arrive on September 15 from BHP and Rio, said the country’s second-largest steelmaker by sales after Posco.
The company, which needs 13.6 million tonnes of iron ore and 6.5 million tonnes of coal per year for the two furnaces, will also buy the raw materials in the spot market over the period, Mr Oh said.
As for planned investment in the new No. 3 furnace, he said it will take less than $US2.4 billion ($2.9 billion).
Asked if Hyundai Steel has any plan to strengthen or diversify its business through acquisitions, Mr Oh said “we have no interest in acquiring companies and instead will focus on completing the (8-million-tonne-a-year) integrated steel mill (by the end of 2010).”
The No. 1 and No. 2 blast furnaces - whose construction reached 80 per cent as of Friday - will have an annual output capacity of 4 million tonnes each, with the third furnace also expected to have an annual capacity of 4 million tonnes.
To meet high domestic demand for shipbuilding plates, Hyundai said it will start operation of a 1.5 million-a-year thick steel plant in December.
The company may double the plate plant’s capacity when operations of the first two furnaces stabilise as planned by 2012, Mr Oh said.
South Korea, which houses the world’s top three shipbuilders, imported 7.2 million tonnes of shipbuilding plates last year and Posco and Dongkuk Steel Mill supplied 7 million tonnes, according to Hyundai Steel.
“We will focus on supplying automotive steel to our affiliates Hyundai Motor and Kia Motors but will also raise the shipbuilding plate business as another income source,” said the executive vice president.
“We will be able to supply thick steel plates at the quickest time to companies such as Hyundai Heavy, Hyundai Mipo and Hyundai Samho Heavy compared with other local suppliers.”
SourcE: Melbourne Herald Sun
“We are planning to sign long-term contracts with our current suppliers for the operation of the third blast furnace,” Oh Myung-suk, executive vice president of Hyundai Steel’s integrated steel project division, said.
For the No.1 and No.2 blast furnaces, Hyundai has secured 98 per cent of its total iron ore demand and 84 per cent of its overall coal needs in five to 10-year contracts with Brazil’s Vale, BHP Billiton and Rio Tinto .
The first delivery of iron ore will arrive on August 23 from Vale and the coal will arrive on September 15 from BHP and Rio, said the country’s second-largest steelmaker by sales after Posco.
The company, which needs 13.6 million tonnes of iron ore and 6.5 million tonnes of coal per year for the two furnaces, will also buy the raw materials in the spot market over the period, Mr Oh said.
As for planned investment in the new No. 3 furnace, he said it will take less than $US2.4 billion ($2.9 billion).
Asked if Hyundai Steel has any plan to strengthen or diversify its business through acquisitions, Mr Oh said “we have no interest in acquiring companies and instead will focus on completing the (8-million-tonne-a-year) integrated steel mill (by the end of 2010).”
The No. 1 and No. 2 blast furnaces - whose construction reached 80 per cent as of Friday - will have an annual output capacity of 4 million tonnes each, with the third furnace also expected to have an annual capacity of 4 million tonnes.
To meet high domestic demand for shipbuilding plates, Hyundai said it will start operation of a 1.5 million-a-year thick steel plant in December.
The company may double the plate plant’s capacity when operations of the first two furnaces stabilise as planned by 2012, Mr Oh said.
South Korea, which houses the world’s top three shipbuilders, imported 7.2 million tonnes of shipbuilding plates last year and Posco and Dongkuk Steel Mill supplied 7 million tonnes, according to Hyundai Steel.
“We will focus on supplying automotive steel to our affiliates Hyundai Motor and Kia Motors but will also raise the shipbuilding plate business as another income source,” said the executive vice president.
“We will be able to supply thick steel plates at the quickest time to companies such as Hyundai Heavy, Hyundai Mipo and Hyundai Samho Heavy compared with other local suppliers.”
SourcE: Melbourne Herald Sun
Wednesday, June 10, 2009
Hyundai Signs Coking Coal Contract With Mechel
Hyundai Steel Co. South Korea's No.2 steelmaker, said ON Wednesday it has signed a contract to buy coking coal from a Russian mining company.
Under the contract with Mechel OAO, Hyundai Steel will buy 200,000 tons of coking coal for five years beginning in April 2010. The financial terms of the deal were not disclosed.
"Through the deal, Hyundai Steel will diversify its coal suppliers and improve its long-term coal supply stability," said a company official.
Mechel, established in 2003, is one of Russia's leading mining and metals companies.
Late last year, Hyundai Steel also reached a deal to buy more than one million tons of coal annually for the next 10 years from Australia's Rio Tinto, the world's second-largest mining firm.
In May last year, Hyundai Steel signed a deal with another Australian firm, Wesfarmers Ltd., securing 500,000 tons of coal annually for the next five years.
Hyundai Steel and other local steelmakers such as POSCO have been seeking to secure stable supplies of raw materials such as iron ore and coking coal as demand for steel from automakers and shipbuilders is expected to increase.
Source: Trading Markets
Under the contract with Mechel OAO, Hyundai Steel will buy 200,000 tons of coking coal for five years beginning in April 2010. The financial terms of the deal were not disclosed.
"Through the deal, Hyundai Steel will diversify its coal suppliers and improve its long-term coal supply stability," said a company official.
Mechel, established in 2003, is one of Russia's leading mining and metals companies.
Late last year, Hyundai Steel also reached a deal to buy more than one million tons of coal annually for the next 10 years from Australia's Rio Tinto, the world's second-largest mining firm.
In May last year, Hyundai Steel signed a deal with another Australian firm, Wesfarmers Ltd., securing 500,000 tons of coal annually for the next five years.
Hyundai Steel and other local steelmakers such as POSCO have been seeking to secure stable supplies of raw materials such as iron ore and coking coal as demand for steel from automakers and shipbuilders is expected to increase.
Source: Trading Markets
Friday, February 20, 2009
Mechel To Supply Coking Coal To Hyundai
Reports from Russia suggest that Russian coal and steel company, Mechel, has agreed to supply up to 300,000 tonnes per year to the South Korean steel manufacturer, Hyundai Steel.
An anonymous company source told Reuters that an agreement on the was signed by Russian Deputy Prime Minister Igor Sechin during an official visit to South Korea.
Mechel will supply the coal from its Yakutugol subsidiary in the far east of Russia from 2010, adding to the 1 million tonnes of coal it already supplies to South Korea. It is likely that the coal will be supplied from Posiet, Mechel's Sea of Japan port.
Mechel produced 15.1 million tonnes of coking coal last year, up 45 percent from 2007.
An anonymous company source told Reuters that an agreement on the was signed by Russian Deputy Prime Minister Igor Sechin during an official visit to South Korea.
Mechel will supply the coal from its Yakutugol subsidiary in the far east of Russia from 2010, adding to the 1 million tonnes of coal it already supplies to South Korea. It is likely that the coal will be supplied from Posiet, Mechel's Sea of Japan port.
Mechel produced 15.1 million tonnes of coking coal last year, up 45 percent from 2007.
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