June 11, 2008 Overview Of The Steel Industry

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May producer price nationwide rose 8.2%: in May, industrial prices rose 8.2%, raw materials, fuels and power rose 11.9%. Prices for capital goods prices rose 9.2%. Among them, the mining industry rose 25.9%, raw materials industry rose 10.9%, processing industry rose 6.3%. Consumer goods prices rose 5.1%. Among them, food prices rose 11.0 percent, clothing up 2.4%, articles for daily use increased by 3.9%, durable consumer goods dropped 0.5%. Bank of China reports that there is still need to raise interest rates control inflation: Bank of China, Ministry of the global financial market research report released on the 10th is expected that China May CPI may range from 7.7-8.0% for the year remained 6.8% of the judgments, but factors such as the role of post-disaster reconstruction, the report of the 2008 Economic growth expected to improve to 10.5%, and that the Government should now do not hesitate to implement a tight monetary policy against inflation, and the need to raise interest rates at an appropriate time. Land Department: Earthquake lowest price of industrial land can be broken: According to the Department of Homeland latest policies, land for industrial projects in earthquake affected areas can break through the lowest standard, while the reconstruction site layout will favor urban and rural development. At 8:00, the Department of Homeland hold post-disaster reconstruction support policy video conferencing, Lu Xinshe, vice minister of land to the quake-hit provinces, eight land policy to provide emergency “assistance.” One is that the disaster area for the implementation of specific land policies to reduce costs, speed up support for disaster recovery and reconstruction. Vietnam’s central bank raised interest rates 200 basis points to 14%: Vietnam’s central bank yesterday (the 10th) that will VND prime lending rate raised to 12% from 14%, and Wednesday will be VND against the U.S. dollar the day down 2%. Vietnam’s central bank said Wednesday USD / VND exchange rate will be based in 16,461 VND, 16,139 VND higher than Tuesday’s. Daily official exchange rate adjustment is usually only a percentage point, the Vietnamese central bank said in a statement, Wednesday VND exchange rate is a temporary reduction in order to better reflect supply and demand on the foreign exchange market and to prevent the phenomenon of hoarding dollars.

Hebei Iron and Steel Group, Baosteel listed capacity over the country’s largest steel enterprises into: Divergent views of Hebei Iron and Steel Industry layout integration finally settled by the Tangshan Iron and Steel And the composition of the Hebei Handan Iron and Steel Group led officially launched today. The new group will reach 31.75 million tons of steel capacity, larger than Baosteel, as the country’s largest steel enterprise groups. It is understood that aim at integration of coal resources in Hebei Hebei Province Energy Group, will also formally established the same day. Chinese steelmakers want to buy some of the shares of BHP Billiton : NEW YORK, June 11 reported that the Chinese state-owned steel producer is preparing to buy BHP Billiton (BHPBillitonLtd.) a majority of the shares, despite the Australian Treasurer Wayne Swan (WayneSwan) warned, would raise the state-owned enterprises to invest in the Australian market threshold. China’s steel industry, said an unnamed executives, interested parties are trying to set up a joint investment vehicle, acquired by the tool BHP Billiton the world’s largest mining company shares. Sluggish demand for imported iron ore in Australia is likely to give up the ocean freight compensation: Yesterday, news that China’s small steelmakers will accept the annual Rio Tinto Iron ore prices 95% of the requests. However, Rio Tinto said yesterday that the iron ore price negotiations continue, the China Iron and Steel Industry Association, who also denied the claim. Analysts believe that macro-control measures to change the mentality of imported iron ore market, buyers and sellers, the Australian mining may eventually give up the ocean freight compensation, 65% increase starting price. Iron ore talks Why languished in: Zhang Xiaogang, president of China Iron and Steel Industry Association said recently that China is expected iron ore price negotiations with Australia is expected to end before the end of June. This should end on April 1 still no tidings of negotiations. “China and Australia so difficult negotiations, in which the maintenance of international trade rules ‘symbolic’ has far exceeded the costs themselves.” Ping An Securities analyst Nie Xiuxin Steel told reporters China Economic Times said, no matter the outcome of negotiations is up 65 % or 80%, 85%, reflecting the difference in cost is not great, but Australia to seek higher ground freight compensation increase is to break the passage of 27 years, the rules of international iron ore negotiations. This is also an important reason leading to the stalled negotiations. China Steel jumped Australia’s largest shareholders and Murchison Midwest merger is subject to its consent: With the Steel Group, the Australian iron ore business?? Midwest’s stake in the company reached 40.09% at 6, it has become the Midwest’s largest shareholder.