November, 01 2005
No plant - no mines: Orissa government tells interested companies
Orissa government has decided that mines will not be leased out to companies, which do not set up plants in the State. The new mining policy, which has been finalized, has put restrictions on the use of mineral resources of the State in outside plants. Minister for Steel and Mines Mr Padmanabha Behera said that the mining policy will be placed in the coming session of the Assembly after obtaining the nod of the Cabinet. Efforts were being made in the direction, he added.
Sources said that adequate provisions will be made in the new policy to restrict export of ore by companies which have already been leased out mines by the Government. Guidelines have also been formed for renewal of mines. This is for the first time the State Government has formulated a policy based on the mining policy of the Centre.
A mining policy has become all the more necessary as the Government has signed MoUs with 36 companies including Posco for establishment of steel plants in the State.
SAIL undertakes cost reduction exercise
Faced with rising input costs and increasing competition, Steel Authority of India Ltd SAIL has embarked on a Rs 400 crore cost reduction exercise in the current fiscal in areas of raw material usage, energy and refractory consumption. Apart from the cost cutting exercise, the steel major has also laid stress on producing value added products to maintain its bottom line.
"Cost of inputs like coking coal are rising at an alarming rate, technology is rapidly changing and competition is increasing by leaps and bound. The scenario calls for action. We are taking a hard look at the profit margins," SAIL sources said.
The areas for cost reduction were identified after a study and analysis of the overall business scenario. The exercise involved continuous identification of the technical problems in operations and a detailed assessment of the financial impact of the shortcomings.
To reduce consumption of coking coal, the company has decided to maximize the use of alternative fuel injection like coal dust injection and coal tar injection techniques in all blast furnaces of its integrated steel plants. Apart from this, it has also decided to install facilities like oxygen injection, maximizing the use of nut coke as part-substitution of blast furnace coke etc, the sources said.
At the same time, SAIL's Research and Development Centre for Iron and Steel has been assigned to work out an optimum ratio of iron ore lump and sinter which would further reduce the cost of hot metal
The company's Raw Materials Division has planned to improve the quality of iron ore from its captive mines.
Uttam Galva Steel Q2 profit down
Uttam Galva Steels Ltd has posted a lower net profit of Rs 9.89 crore for the second quarter ended September 30, 2005 as compared to Rs 17.31 crore in the corresponding quarter previous fiscal.
Sales during the reporting quarter decreased to Rs 367.85 crore as compared to Rs 503.01 crore in Q2 of FY-05, the company said in a release on Monday. Exports for the quarter stood at Rs 217.11 crore as against Rs 302.40 crore for the corresponding quarter the previous year, it said.
"The drop in turnover and profits during the quarter was due to shutdown of the plant for more than 3 weeks because of the heavy floods in Maharashtra in July 2005," UGSL Director Mr Ankit Miglani said. The company is, however, adequately covered with insurance for loss of production and has initiated appropriate measures for securing the claim, he added.
JSPL reports Q2 net profit of Rs 145.5 crores
Jindal Steel & Power Ltd has posted a net profit of Rs 145.53 crore for the second quarter ended on September 30, as compared to Rs 123.48 crore for the same quarter last year.
The total income, net of excise, of the company has increased from Rs 505.68 crore in the last year's September quarter, to Rs 628.19 crore for the same quarter this year.
SAIL undertakes cost reduction exercise
Faced with rising input costs and increasing competition, Steel Authority of India Ltd SAIL has embarked on a Rs 400 crore cost reduction exercise in the current fiscal in areas of raw material usage, energy and refractory consumption. Apart from the cost cutting exercise, the steel major has also laid stress on producing value added products to maintain its bottom line.
"Cost of inputs like coking coal are rising at an alarming rate, technology is rapidly changing and competition is increasing by leaps and bound. The scenario calls for action. We are taking a hard look at the profit margins," SAIL sources said.
The areas for cost reduction were identified after a study and analysis of the overall business scenario. The exercise involved continuous identification of the technical problems in operations and a detailed assessment of the financial impact of the shortcomings.
To reduce consumption of coking coal, the company has decided to maximize the use of alternative fuel injection like coal dust injection and coal tar injection techniques in all blast furnaces of its integrated steel plants. Apart from this, it has also decided to install facilities like oxygen injection, maximizing the use of nut coke as part-substitution of blast furnace coke etc, the sources said.
At the same time, SAIL's Research and Development Centre for Iron and Steel has been assigned to work out an optimum ratio of iron ore lump and sinter which would further reduce the cost of hot metal
The company's Raw Materials Division has planned to improve the quality of iron ore from its captive mines.
No plant - no mines: Orissa government tells interested companies
Orissa government has decided that mines will not be leased out to companies, which do not set up plants in the State. The new mining policy, which has been finalized, has put restrictions on the use of mineral resources of the State in outside plants. Minister for Steel and Mines Mr Padmanabha Behera said that the mining policy will be placed in the coming session of the Assembly after obtaining the nod of the Cabinet. Efforts were being made in the direction, he added.
Sources said that adequate provisions will be made in the new policy to restrict export of ore by companies which have already been leased out mines by the Government. Guidelines have also been formed for renewal of mines. This is for the first time the State Government has formulated a policy based on the mining policy of the Centre.
A mining policy has become all the more necessary as the Government has signed MoUs with 36 companies including Posco for establishment of steel plants in the State.
JSPL reports Q2 net profit of Rs 145.5 crores
Jindal Steel & Power Ltd has posted a net profit of Rs 145.53 crore for the second quarter ended on September 30, as compared to Rs 123.48 crore for the same quarter last year.
The total income, net of excise, of the company has increased from Rs 505.68 crore in the last year's September quarter, to Rs 628.19 crore for the same quarter this year.
Tata Steel gets land at Haldia for metcoke project
Land has been allotted at Haldia to Tata Steel, which is setting up a metallurgical coke project in joint venture with the West Bengal Industrial Development Corporation (WBIDC). The 0.8 million tonnes project, involving an outlay of Rs. 700 crore is expected to start its first phase by early 2007.
The project aims to supply high quality metallurgical coke to international and domestic customers. It also incorporates a 60 MW power project.
A Tata Steel spokesman said the joint venture, Hooghly Met Coke and Power Company, which is setting up the project, had already issued a letter of intent to Beijing Sino Steel Industry and Trade Group for sourcing the technology from Shanxi Provincial Chemical Design Institute, China, as well as setting up the project on a turnkey basis.
The joint venture agreement for the project was executed on January 12 here in the presence of the West Bengal CM Mr Buddhadeb Bhattacrayya, and the Tata Sons Chairman Mr Ratan Tata.
Uttam Galva Steel Q2 profit down
Uttam Galva Steels Ltd has posted a lower net profit of Rs 9.89 crore for the second quarter ended September 30, 2005 as compared to Rs 17.31 crore in the corresponding quarter previous fiscal.
Sales during the reporting quarter decreased to Rs 367.85 crore as compared to Rs 503.01 crore in Q2 of FY-05, the company said in a release on Monday. Exports for the quarter stood at Rs 217.11 crore as against Rs 302.40 crore for the corresponding quarter the previous year, it said.
"The drop in turnover and profits during the quarter was due to shutdown of the plant for more than 3 weeks because of the heavy floods in Maharashtra in July 2005," UGSL Director Mr Ankit Miglani said. The company is, however, adequately covered with insurance for loss of production and has initiated appropriate measures for securing the claim, he added.
RSP bags Environmental award
SAILs Rourkela Steel Plant RSP has bagged the Greentech Environment Excellence Gold Award, instituted by the Green Tech Foundation, in the metal sector, for the second year in succession. Dr Sanak Mishra MD of RSP, received the Award on behalf of the plant at the 6th Annual International Conference and Exhibition on Environment Management held at Goa recently.
Earlier this year, RSP had received the prestigious Indira Priyadarshini Vrikshamitra Award from the Ministry of Environment and Forests, Government of India and the World Environment Foundation Golden Peacock Award.
SAILs Bokaro unit expansion plans await approval
Mr VK Srivastava ED Works of Bokaro Steel Plant said that as part of the expansion plant, Bokaro would have a tonnage of 6.5 million tonne of hot metal as against 4.65 million tonne now.
Srivastava said, the investment for capacity expansion would be to the tune of Rs 8,000 crore. Out of this, Rs 500 crore had been approved by the SAIL board.
At the next board meeting proposal for investments to the tune of Rs 280 crore would be placed. This entailed investment in air turbo compression, oxygen turbo compression, sinter plant and enterprise resource planning (ERP). Augmentation of the cold storage would cost another Rs 80 crore.
Mr Srivastava said, though the SAIL board had approved Rs 200 crore for up gradation of the cold rolling mill, final approval was awaiting.
Chowgule shipbuilders bags Rs 4800 crores orders
The shipbuilding division of Chowgule and Company has bagged overseas orders to build 12 ocean going cargo vessels of 4,450 DWT each with a total estimated cost of Rs 400 crore, three each from Netherlands based company Navigia and German company Appollo Shipping, four from UK company Union Transport and two from German company Priesse for delivery in next three years
Executive Director Mr Ashok V Chowgule said that with these new orders, Chowgules shipbuilding division is marking change in its profile by building cargo ships, he said. At present, the company is focusing on iron ore barges, passenger vessels, deep sea refrigerated fishing trawlers, grab and cutter suction dredgers, tugs, twin hull catamarans and floating restaurants. The shipyard will not be accepting any fresh orders as the capacity is full. It is planning to upgrade its capacity to construct 8 vessels against existing capacity of three years per year, he added.
The division is also undertaking an investment program of Rs 40 crore to upgrade the shipyard facilities by inducting advanced machines. It has already invested Rs 10 crore and has installed CNC Plasma cutting machine which can cut steel plates of 12 meters
The shipyard, located at Loutulim in Goa, has a good water front, two construction bays, full fledged workshop, outfitting jetty and sufficient skid for pre-fabrication facility.
Techint accepts Presidents suggestion for iron ore pricing
Techint, principal shareholder in Venezuelan steelmaker Sidor, has accepted the governments request to modify a supply contract with the state iron company, a government official said. The Techint group wants to revise the contract, the Basic Industries and Mines Ministry said in a statement over the weekend following meetings with the companys owners.
President Mr Hugo Chez said last week that state Ferrominera del Orinoco would no longer supply Sidor with iron ore at 44% of international market price as agreed to when Sidor was privatized in 1997. Mr Chez warned that the government could buy the privatized steel company if it did not cooperate with his administrations demands. The ministry said the state iron company had lost about $250 million due to the Sidor contract.
Mr Chez, who is a harsh critic of capitalism and the administration of US President Mr George W. Bush, says that many deals in the oil and mining sectors signed before he first won office in 1998 are robbing Venezuela by giving foreign companies preferential terms. Mr Chez threats to purchase Sidor came as his government carries out a nationalist drive to secure more control of the countrys energy and mineral resources and reduce imports by using raw materials to manufacture goods in Venezuela. His government last week approved more than $2 billion in new investments in basic industries, including seed money for a new state-run steel manufacturing company.
The Venezuela state owns 30% of Sidor, 10% of shares are held by workers and the rest is controlled by a consortium that includes Argentinas Techint, Brazils Usiminas and Venezuelan steelmaker Sivensa.
The government also wants Sidor to increase its supplies to Venezuelas domestic market. Sidor ships around 300,000 tons of finished steel goods a month to the domestic market, neighboring Andean countries, the United States, Mexico and Central America. The domestic market consumed more than 170,000 tons per month last year and the company had said it expected domestic sales to increase.
Acindar will expand MIDREX its Plant
Midrex Technologies Inc announced that it has signed a contract with Acindar SA for the expansion of its existing Direct Reduction module in Villa Constitucion, Argentina. The project is expected to be completed in the 2nd Quarter 2007
The original 5.5 meter furnace at Acindar began operations in 1978 as a 400,000 metric tonne per year facility to service the adjacent steelmaking operations. Two previous expansions have raised capacity to 1 million tonnes per year.
The current expansion project is expected to add a further 250,000 tonnes per year, raising capacity up to 1.25 million tonnes per year making the Acindar 5.5 meter MIDREX Shaft Furnace the highest capacity of its size in the world.
VAI-Siemens to build BOF for Ahmsa
VAI-Siemens has been contracted to build a new, 60 ton basic oxygen furnace for Altos Hornos de Mexico, S.A. de C.V. Ahmsa, in Monclova, Mexico. The new BOF is scheduled for August 2006.
As detailed by VAI-Siemens, the vessel will be a replacement for one of the current furnaces and includes a new trunnion ring and the "statically determined" VAI-CON Link suspension system.
The new converter will have an improved design and increased specific volume compared with the existing converter, the contractor states, with the VAI-CON Link suspension system replacing a lamella-suspension system.
Ahmsa is 3-million metric tons per year producer of flat-rolled steel, including HR and CR coils, plates, and tinplate.
Kobe Steel H1 profits double
Half-year net profit at Kobe Steel, Japan's fourth-biggest steel maker, grew to 36.71 billion yen from 15.69 billion yen.
It raised its full-year net profit outlook to 80 billion yen from 75 billion yen announced in September, roughly in line with market expectations.
Nippon Steel quarterly profit up by 80%
Japan's largest steel maker, Nippon Steel Corp., said Monday its profit jumped 80 percent in the quarter through September, boosted by growing sales and rising prices for steel sheets, used in automobile production.
Nippon Steel's profit for the quarter rose to 104.1 billion yen ($900 million), up from 57.7 billion yen the same period the previous year. Sales for the quarter jumped 19 percent to 958.6 billion yen ($8.3 billion) from 807.1 billion yen a year ago
For the fiscal first half, Nippon Steel posted 195.7 billion yen ($1.7 billion) profit, more than double the 81 billion yen profit the manufacturer marked the same period a year ago. Fiscal half sales totaled 1.86 trillion yen ($16 billion), up 24 percent from 1.5 trillion yen the previous year.
Demand for high-grade steel, Nippon Steel's specialty, remains strong, especially by Japanese manufacturers in China, a booming market for cars and other machinery, said spokesman Mr Hiroshi Nakashima. Steel prices have come down in lower grade steel, which are produced by Chinese steel companies, but prices are still high for upper grade steel sheets, lifting Nippon Steel's earnings, he said.
CISA measures leading to rebound in steel price
The falling steel price has begun to rebound after measures were taken, said Mr Luo Bingsheng, executive vice chairman of China Iron and Steel Industry Association (CISA) Monday in Beijing at a press briefing.
On October 21, CISA called 50 major steel companies and they agreed to take measures to prevent the price from falling down.
First, pushing forward enterprise mergers and acquisitions to phase out backward capacities and prevent excessive capacity expansion;
Secondly, setting up an output demand coordination group in the medium- and thick-plate and hot rolled wide belt, plate and roll fields on a voluntary basis of the enterprises to strengthen industrial self-discipline. Such coordination groups may be extended to other steel products if necessary.
Thirdly, requiring all members of the association, particularly plate and hot rolled wide belt makers, to control output and reduce their production in the fourth quarter by more than 5% so as to ease market pressure.
Fourthly, increasing direct supply and direct sales to reduce intermediate links and prevent speculation.
Last, requiring steel makers to refuse steel products futures trade so as to prevent the negative impact of forward contracts and other electronic transactions.
"The price plunges in the domestic market are temporary and we hope cutting production will soon rebuild market confidence," said Mr Qi Xiangdong, deputy secretary-general of the association.
Nippon Steel quarterly profit up by 80%
Japan's largest steel maker, Nippon Steel Corp., said Monday its profit jumped 80 percent in the quarter through September, boosted by growing sales and rising prices for steel sheets, used in automobile production.
Nippon Steel's profit for the quarter rose to 104.1 billion yen ($900 million), up from 57.7 billion yen the same period the previous year. Sales for the quarter jumped 19 percent to 958.6 billion yen ($8.3 billion) from 807.1 billion yen a year ago
For the fiscal first half, Nippon Steel posted 195.7 billion yen ($1.7 billion) profit, more than double the 81 billion yen profit the manufacturer marked the same period a year ago. Fiscal half sales totaled 1.86 trillion yen ($16 billion), up 24 percent from 1.5 trillion yen the previous year.
Demand for high-grade steel, Nippon Steel's specialty, remains strong, especially by Japanese manufacturers in China, a booming market for cars and other machinery, said spokesman Mr Hiroshi Nakashima. Steel prices have come down in lower grade steel, which are produced by Chinese steel companies, but prices are still high for upper grade steel sheets, lifting Nippon Steel's earnings, he said.
Techint accepts Presidents suggestion for iron ore pricing
Techint, principal shareholder in Venezuelan steelmaker Sidor, has accepted the governments request to modify a supply contract with the state iron company, a government official said. The Techint group wants to revise the contract, the Basic Industries and Mines Ministry said in a statement over the weekend following meetings with the companys owners.
President Mr Hugo Chez said last week that state Ferrominera del Orinoco would no longer supply Sidor with iron ore at 44% of international market price as agreed to when Sidor was privatized in 1997. Mr Chez warned that the government could buy the privatized steel company if it did not cooperate with his administrations demands. The ministry said the state iron company had lost about $250 million due to the Sidor contract.
Mr Chez, who is a harsh critic of capitalism and the administration of US President Mr George W. Bush, says that many deals in the oil and mining sectors signed before he first won office in 1998 are robbing Venezuela by giving foreign companies preferential terms. Mr Chez threats to purchase Sidor came as his government carries out a nationalist drive to secure more control of the countrys energy and mineral resources and reduce imports by using raw materials to manufacture goods in Venezuela. His government last week approved more than $2 billion in new investments in basic industries, including seed money for a new state-run steel manufacturing company.
The Venezuela state owns 30% of Sidor, 10% of shares are held by workers and the rest is controlled by a consortium that includes Argentinas Techint, Brazils Usiminas and Venezuelan steelmaker Sivensa.
The government also wants Sidor to increase its supplies to Venezuelas domestic market. Sidor ships around 300,000 tons of finished steel goods a month to the domestic market, neighboring Andean countries, the United States, Mexico and Central America. The domestic market consumed more than 170,000 tons per month last year and the company had said it expected domestic sales to increase.
US Commerce Dept cuts dumping tariff on CST HRC
The US Department of Commerce has eliminated an antidumping tariff levied against hot rolled coils produced by Brazilian steelmaker Companhia Siderurgica de Tubarao CST, the company said. HRC were subject to an antidumping tariff of 42.12%, according to CST. However, a countervailing duty of 7.8% on the products is still in effect, although CST is attempting to have the duty removed. The decision was rendered last week.
CST had argued that the tariff, which was put in place in 1999, should be removed because the company was not a producer of hot-rolled coils at that time. CST started producing hot-rolled coils in 2002, after installing a $400 million rolling mill at its works in Espirito Santo state.
In June 2004, the company requested the tariff be removed. In August, the company received a favorable preliminary ruling after officials from the US Commerce Department reviewed its facilities and bookkeeping
CST expects to produce 2.3 million metric tons of hot rolled coils in 2005, with 650,000 tons bound for export, primarily to other Latin American countries.
It is the second time this month that the Commerce Department has removed a tariff against Brazilian HRC as the ruling follows the removal earlier this month of a 41.27% tariff on HRC produced by fellow Brazilian steelmaker Companhia Siderurgica Nacional CSN. A countervailing duty of 6.35% is still in force on hot-rolled coils produced by CSN.
China's steel industry keeps fast growth in first 3 quarters of 2005
China's steel industry kept fast growth in the first three quarters of 2005, with a total production of 255.286 million tons of crude steel, up 27.39% YOY.At a press briefing held by China Iron and Steel Association CISA, Mr Luo Bingsheng, executive vice chairman, said the production of iron was 239.213 million tons, up 30.98% and rolled steel was 268.819 million tons an increase of 25.82%
Despite fast growth of production, Luo said, large parts of the production are of low grades and China still needs to import a large amount of high grade steel. In the first three quarters, China imported 20 million tons of steel, down 16.4%, more than 85% of which was in higher grades.
Statistics show China's export of steel products rocketed by 83% YOY to 15.8 million tons in the first three quarters of this year.
Acindar will expand MIDREX its Plant
Midrex Technologies Inc announced that it has signed a contract with Acindar SA for the expansion of its existing Direct Reduction module in Villa Constitucion, Argentina. The project is expected to be completed in the 2nd Quarter 2007.
The original 5.5 meter furnace at Acindar began operations in 1978 as a 400,000 metric tonne per year facility to service the adjacent steelmaking operations. Two previous expansions have raised capacity to 1 million tonnes per year.
The current expansion project is expected to add a further 250,000 tonnes per year, raising capacity up to 1.25 million tonnes per year making the Acindar 5.5 meter MIDREX Shaft Furnace the highest capacity of its size in the world.
VAI-Siemens to build BOF for Ahmsa
VAI-Siemens has been contracted to build a new, 60 ton basic oxygen furnace for Altos Hornos de Mexico, S.A. de C.V. Ahmsa, in Monclova, Mexico.
As detailed by VAI-Siemens, the vessel will be a replacement for one of the current furnaces and includes a new trunnion ring and the "statically determined" VAI-CON Link suspension system.
The new converter will have an improved design and increased specific volume compared with the existing converter, the contractor states, with the VAI-CON Link suspension system replacing a lamella-suspension system.
Ahmsa is 3-million metric tons/year producer of flat-rolled steel, including HR and CR coils, plates, and tinplate. The new BOF is scheduled for August 2006.
Kobe Steel H1 profits double
Half-year net profit at Kobe Steel, Japan's fourth-biggest steel maker, grew to 36.71 billion yen from 15.69 billion yen.
It raised its full-year net profit outlook to 80 billion yen from 75 billion yen announced in September, roughly in line with market expectations.
Oregon Steel Mills 3Q profit slides by 60%
Oregon Steel Mills Inc. on Monday said profit slid 60% in the third quarter on declining shipments. Net income dropped to $20.2 million from $50.3 million, a year ago as the sales fell during the period to $299.7 million from $348.3 million.
Oregon Steel said the average sales price per ton rose to $785 from $761, but total shipments declined YOY to 381,800 tons from 457,700 tons. The company said it shipped less plate and coil, welded pipe, rod and bar products.
Manganese price outlook strong Consolidated Minerals
Diversified Australia based resource firm Consolidated Minerals has reported improving pricing levels and confirmed a strong outlook for its core manganese business following meetings with major Chinese customers. Consolidated said yesterday that its GM of marketing, Mr Michael Walters, had recently returned from meetings with key customers in China and reported firmer pricing levels for both manganese ore and manganese alloys, confirming the company's view that, by the third quarter of the 2005 - 06 year, manganese prices will return to the levels enjoyed in the second half of 2004-05.
Mr Walters said the market consensus in China was that manganese alloy and ore prices had recently bottomed during the traditional period of price weakness in the first half of the financial year, with the return of buyers to the market providing evidence for a market rebound. Traditionally, if Chinese buyers anticipate continued price reductions they will defer their purchasing, Mr Walters said. However, we have recently seen buyers re-enter the manganese market, which suggests that they consider that pricing will not be adjusted further downwards. We are now discussing pricing levels for ore for the third quarter of this financial year moving back towards the strong prices seen in the second half of the 2004/05 financial year, he said.
The price rebound in China is reflected in firming manganese alloy prices worldwide, with alloy prices increasing in recent weeks by 5% to 10% in the United States, by 12% in Japan and by 5% in China.
Dofasco's Q3 profit sinks
Dofasco Inc has reported its third quarter results. Overall sales were c$1.1 billion, slightly higher than the year earlier quarter's C$1.09 billion. Steel shipments rose to 1.22 million tonnes, up from 1.19 million. But gross income from the segment fell 80%, to C$35.6 million, from C$178.8 million, and the result was a net loss on steel operations.
''We are disappointed with the results achieved this quarter in Hamilton, which were adversely impacted by difficult business conditions that hit both revenues and costs,'' CEO Mr Don Pether said.
For 2006, it forecasts a further decline of about 2.5%, driven by a drop in Canadian manufacturing activity and cutbacks at the big automotive firms.
Pakistans first ferroalloy plant begins production
Pakistans first ferro alloys unit, using 100% local raw materials and captive electric power generated from a mixture of domestic and imported coal, has begun production at the Dhabeji Industrial Estate. The project is initiated and executed by Al Abbas Industries AAI Limited at a cost of $30 Million with the technical assistance of South African experts.
Mr Shunaid Qureshi MD of AAI, said First tapping and casting of ferrosilicon at the plant was carried out successfully early this week and would soon start producing FeMn commercially as well.
He said till now all the quantities of ferroalloys used in the steel industry for degassing and alloying purposes had been imported. The production of two products would relieve Pakistan from importing the two major ferroalloys, which would save around $10 million.
Mr Qureshi said the AAI's complex had not only enough capacity to meet all the domestic demand of FeSi and FeMn, but in future it could also produce other ferroalloys, such as, FeCr, SiMn, etc.
Schnitzer Steel buys Atlantas Regional Recycling company
Schnitzer Steel Industries Inc has acquired Regional Recycling LLC, a metals recycling business with 10 locations in the southeastern US for $65.5 million in cash and the assumption of certain liabilities for the acquisition.
The company will be operated under the name of Regional Recycling, a Schnitzer company, with headquarters in Atlanta and locations in Alabama - Attalla, Birmingham and Selma and Georgia -Atlanta, Bainbridge, Cartersville, Gainesville and Rossville. Regional Recycling executives Mr Byron Kopman and Mr David Romanoff will become executive directors of Schnitzer Southeast. In 2004, Regional Recycling reported revenue of $190.4 million.
"Our acquisition of Regional provides us with a new and solid presence in the Southeast, and complements our metals recycling businesses and our recent acquisition of Greenleaf Auto Recyclers. With the acquisition of Regional, Schnitzer's ability to serve domestic and export markets from either coast is significantly enhanced," said Mr John Carter, president and CEO of Portland-based Schnitzer Steel.
Accuride Q3 earnings rise
Steel and forged aluminum wheel manufacturer Accuride Corp. said Monday its third-quarter profit soared as sales surged thanks to the strength of the commercial vehicle industry and its acquisition of Technologies Industries Inc. in January. Net income more than doubled to $19.1 million from $7.1 million in the year-ago period. Sales totaled $316.1 million, compared with $123.5 million a year ago.
"We are progressing well with our integration of the former TTI businesses and the rapid de leveraging of our balance sheet as evidenced by the $35 million debt reduction in the quarter," said Mr Terry Keating, president and CEO, in a statement. Mr Keating added that while high fuel prices and recent hurricanes remain a concern, the company reaffirmed its previous guidance of $205 million in pro forma adjusted earnings before interest, taxes, depreciation and amortization, for the year.
Canam Group Inc sells control of Steel Plus Network
Canadian construction steel fabricator Canam Group Inc is selling control of Steel Plus Network to a US based industry buying group, for $2.4 million US.with the balance of the purchase price to be set in the first quarter of 2008
"This transaction will not have an immediate impact on the results of Canam Group Inc., which expects to benefit from the growth in value of its investment over the next few years as Steel Plus Network LLC pursues its development as a buying group and increases the number of its shareholders across Canada and the United States," the Canadian steel fabricator said in a release.
Steel Plus Network was founded in 1995 to offer its North American members various services, but has now become the largest private steel fabricator buying group in North America. Though the company is based in the United States, its administrative office is in Laval Quebec.
Canam operates 12 plants that design and shape construction steel. The company employs close to 3,000 people in Canada, the United States, Mexico, Romania and India.
North American Galvanizing & Coatings announces Q3 results
North American Galvanizing & Coatings Inc announced today that sales for the third quarter ended September 30, 2005 were $12.6 million up 36% from sales of $9.3million for the third quarter a year ago. The Company reported third-quarter 2005 net earnings of $0.17 million compared to net earnings of $0.22 million for the third quarter of 2004.
Sales for the three months and nine months ended September 30, 2005 increased 36% and 28%, respectively, over the prior year due primarily to contribution from the Canton, Ohio galvanizing facility that was purchased February 28, 2005.
Higher zinc and natural gas costs resulted in a decrease in gross profit percentage. The impact of year over year higher costs on the third quarter was a decrease in margin of 3.1% and on the nine-month period ended September 30, a decrease in margin of 2.9%.
"Due to higher raw material and energy costs, customer pricing was increased during September," said Mr Ronald J. Evans, president and CEO. "The full impact of the adjustment in selling price is not expected to be reflected in gross profit until the fourth quarter." "Both revenue and expenses were affected by a five day unplanned shutdown at our Houston plant due to hurricane Katrina. As the hurricane approached, the evacuation and safety of our employees was our primary concern," Mr Evans added. The plant is again operating under normal conditions.
North American Galvanizing is a leading provider of hot-dip galvanizing and coatings for corrosion protection of fabricated steel products. The Company conducts its galvanizing and coating business through a network of plants located in Ohio, Denver, Dallas, Houston, Kansas City, Louisville, Nashville, St. Louis and the Tulsa area.
China port backlog threatens economic growth
China, the world's largest iron ore importer, needs to clear the backlogs at ports that handle commodities used for steelmaking to reduce vessel delays and help sustain the nation's economic growth, according to analysts attending this week's World Shipping (China) Summit in Shanghai. As many as 300 executives, shipbrokers and analysts are meeting in Shanghai today and tomorrow for this year's World Shipping (China) Summit.
China may move 250 million metric tons of imported iron ore this year, 18 percent more than a year earlier, the ministry said. About 35 million tons of ore were lying at the country's harbors at the end of June, almost matching the highest level last year, the ministry said.
Vessels waiting to unload iron ore at Beilun, China's second-largest ore port were delayed by an average seven days in October compared with four days in September, according to Barry Mr Rogliano Salles, a Paris-based shipbroker. Delays averaged three days at Qingdao, the country's largest ore harbor.
If China doesn't address the shortfall in investments in dry-bulk ports, the country's economic expansion would ultimately be affected,'' said Mr Neil Davies, an analyst at Drewry Shipping Consultants Ltd. in London, which is co sponsoring this week's shipping summit. Commodity terminals have been partly ignored as container ports have been China's top priority because they handle high-value exports.''
