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wiredInUSA - September 2012
wiredInUSA - September 2012
36
One of China’s largest wire and cable
manufacturing companies, Hu An Cable
Holdings Ltd, has secured contracts worth
S$20.8 million (around $16.6 million) from
China Power Investment Corporation. The
group won 25 out of 29 projects put up for
tender by the producer, said to be one
of China’s top five power generation
companies.
The contracts, secured by a wholly owned
subsidiary, Wuxi Hu An Wire And Cable Co
Ltd, are for the delivery of power cables
to 25 wind, solar and hydroelectric power
plants across China, including the 20MWp
grid-connected photovoltaic power plant
in Shanshan, Xinjiang and the 30
th
wind
farm project in Changling, Jilin.
The group expects to deliver over 80
percent of the contract value during 2012
and the balance in 2013.
Cable contracts
37
ASIA / AFRICA NEWS
POSCO Specialty Steel is reported to
have cut the domestic prices of austenitic
stainless wire rod and bar for August 2012
deliveries in response to a decline in nickel
prices, which have decreased below
$16,000 per tonne since the middle of July
2012.
Meanwhile, data released by the Korea
Iron and Steel Association revels that South
Korea’s production of bars has fallen by
two percent (month-on-month) to 222,400
tons.
POSCO cuts prices
INDEXIndustry analysts view recent announcements
of ex-factory price reductions by several
Chinese steel producers as possible
evidence of an upward turn in the fortunes
of the domestic steel industry.
Shagang, the largest privately owned steel
mill in China, has lowered its prices for wire
rodby $18.87 per ton. As a result, Shagang’s
price for 6.5mm HRB 235 wire rod has fallen
to $572 per ton.
Baoshan Iron and Steel Co, China’s third
largest steel mill by production capacity,
has reduced its ex-factory prices for
September orders - the third consecutive
month that the company has reduced the
price of both hot- and cold-rolled products.
Baosteel reduced its flat rolled products
prices by between 300 yuan and 500
yuan per ton in its July and August price
adjustments, compared to its September
cut of between 80 yuan and 180 yuan.
According to figures from SteelHome,
Chinesemarket prices of rebar andwire rod
declined by about 50 yuan per ton since
the beginning of August, considerably less
than the average monthly decrease of
over 300 yuan per ton seen in July.
China steel price fall
Due to current capacity constraints, Kelani
Cables PLC is to extend its existing facility
at Kelaniya. “We have identified a 277
perch land which is adjacent to our factory
at Kelaniya for expansion,” Mahinda
Saranapala, CEO Kelani Cables told
the Business Times. He added that the
company has already identified the
machinery required for the new facility,
once the expansion is complete.
The company saw its net profit increase
by 123 percent last year. “During the year
we faced volatility in copper prices in
international markets and operational
challenges in thedomesticmarket that had
an overall adverse impact of our bottom
line, such as the escalation of fuel prices,
foreign exchange fluctuations, increase
in electricity prices and also increased
competition,” said Mr Saranapala.
Export orders continue to show growth.
“In addition to our existing export markets
in the Maldives, Bangladesh, India and
Japanduring the2011/12 financial year, we
initiated negotiations to enter the lucrative
Australian household wire market,” Mr
Saranapala said, adding that Kelani
Cables had also sent trial orders to South
Africa during the year.
Cable expansion