November, 19 2005
SAILs alloy plant plans massive upgrades
It is reported that SAILs Alloy Steel Plant ASP is chalking out an Rs 460 crore CAPEX for upgrading its existing units and installing some new units with appropriate interfacing with the existing ones. "The major highlight of the up gradation program will be the greater synergy between ASP and Salem Steel Plant SSP, as the stainless steel slabs will be sent to SSP for finishing into both hot and cold rolled coils," the official release stated.
The first phase of modernization plan would include steel melting and refining facilities through installation of AOD unit and a new electric arc furnace, to be commissioned by next year. After the completion of the first phase, the plant has plans to upgrade its forge shop and investments for the blooming and billet mill by installing a walking beam furnace are also being contemplated
A new bloom caster of 200,000 tonnes per annum capacity is on the cards too. The caster will have facilities for casting round blooms too. Similarly, conditioning shop, heat treatment and finishing shop, power distribution system, utilities and other areas will also see investment in upgrading the facilities to make them state of the art.
The addition of these facilities will increase ASP's capacity of producing liquid steel to 500,000 tonnes from the existing level of 164,000 tonnes. Production of stainless steel slabs will also be enhanced to 200,000 tonnes and the long products comprising blooms, rounds, billets, forgings and others will be to the tune of 300,000 tonnes.
Indian government looking for consolidation in steel and mining
It is reported that a committee has been constituted to study the feasibility of several proposals for merger of various other public sector companies under the steel ministry, including those in the mining and mineral business. Steel Minister Mr Ram Vilas Paswan told reporters that the government had decided to look at other merger issues instead of focusing on RINLs merger with SAIL for the time being as Andhra government was opposed to the move. The committee will look into all merger issues the minister said. Such a merger is important to help PSUs face the fierce competition from the private sector
The proposals under consideration are for the merger of Maharashtra Electrosmelt MEL and Manganese Ore India MOIL with SAIL. Government has recently approved merger of SAIL an IISCO and the proposal for merger of NINL with SAIL is pending for approval
In the mining sector also merger is being contemplated by bringing together Kudremukh Iron Ore Company KIOCL, MOIL and National Mineral Development Corporation NMDC.
Jindal Stainless Ltd in Russian SS market
Presently Russian Traders prefer to cooperate with stainless steel producers from Japan, China, Taiwan and India. This was announced by Mr S Kisilev of GK Svetlana, during the Metal Expo 2005, in Moscow, which has signed a contract with Indian producer Jindal for supply of Stainless Steel due low price and wider range in thinner gauges.
Mr. V Nikitin, Chief Engineer of GK Svetlana said that their company had set a task to increase their range and by buying from Indians they had done that and also had a price advantage.
But in spite of success of Indian stainless steel, some negative comments were also heard. It is reported that the representatives of Ashinsky Metallurgical Works remarked that, as a result of certain tests performed on some stainless steel from Jindal, their management had decided not to risk with Jindal steel and not to buy stainless steel from Indians to be used in manufacturing of utensils. It is reported that they bought around 500 MT of Stainless steel from a producer in SE Asia, and did not face any quality problems.
Representatives of the Auto industry and in particular Avtovaz, commented in favor of Japanese Stainless steel producers. This underlines the seriousness of Asian presence in the Russian market: Asian producers are supplying a quality product to the Russian market at reasonable prices, it will be very difficult for the Russian producers to regain their lost positions
JSPL signs agreement with Sasol Lurgi for gasification technology
It is reported that Jindal Steel & Power Ltd JSPL has entered into an agreement with Sasol Lurgi Technology Company of South Africa and Lurgi AG of Germany for a coal gasification facility at its six million tonne steel plant in Orissa, with the aim to reduce dependence on imported coal and gas for meeting fuel requirements. This is the first time any company in the country is using such a technology.
The technology involves conversion of non-coking coal into synthesis gas, which is a substitute for natural gas. JSPL vice CMD Mr Naveen Jindal said that the technology would employ state of the art sixth bed dry bottom type gasifier that is suitable for the high ash content Indian coal
The technology would produce 320,000 normal cubic meters per hour of synthesis gas, which will be adequate for two million tonnes of direct reduced iron and would meet all the fuel requirements. The cost of steel produced with the help of this technology would be 10 per cent less than what is currently being produced, he said.
JSPL, which has a coal block Utkal B-1 with 200 million tonnes reserves in Orissa, is expecting to start operations at the steel plant during 2008-09. The company is in talks with the Orissa government for land allocation.
Government directs steel companies to participate in infrastructure
The government expects active participation from the steel industry in the creation of infrastructure in the railway, road and port sector in its pursuit of the 110 million tonne production target, as the production hike would mean an annual increase in traffic by 300 MT
The steel sector would therefore need to chip in with creation of railway infrastructure in capital intensive areas like laying of tracks and procuring wagons while the national road projects would have to integrate steel plants and mines, the National Steel Policy NSP says. Steel producers would be encouraged to develop port and berth facilities to improve productivity, turn around time and capacity to handle larger vessels, it adds.
Siemens VAI modernizes HR mill at Bokaro Steel Plant
The Siemens Group Industrial Solutions and Services (I&S) received an order from SAILs Bokaro Steel Plant BSL for the modernization of their hot rolling mill at Bokaro, India. The project, which will be implemented by the I&S Division VAI and includes engineering, equipment supply, erection, start-up and commissioning, is scheduled for completion by mid-2007. It was agreed not to disclose the contract value.
As part of a modernization project to increase overall mill availability, production capacity and product quality, the I&S Division VAI received a contract from BSL to implement a number of improvement measures on the HSM. This included the overall refurbishment of the 7-stand 4-high finishing-mill, installation of work-roll shifting and bending to improve strip flatness, installation of new bending blocks and work-roll chock assemblies in addition to erection, start-up and commissioning.
The local equipment supply will be carried out by VAI Engineering & Automation Pvt Ltd., India. The modernization activities will be performed in two phases during the summer shutdowns in 2006 and 2007. Upgrading of 3 mill stands will take place during the first phase in 2006, and upgrading of 4 mill stands during the second phase in 2007.
BSL produces over 4.5 million tons per year of a broad range of flat steel products such as HR coils, HR plates, HR sheets, CR coils, CR sheets, TMBP and galvanized steel
VAI, a division of the Siemens Group Industrial Solutions and Services (I&S), is one of the world's leading engineering and plant-building companies for the iron and steel industry as well as for the flat-product-rolling sector of the aluminum industry.
The Siemens Industrial Solutions and Services Group (I&S) is the integrator of systems and solutions for industrial and infrastructure facilities and global service provider for the plant and projects business covering planning, installation, operation and the entire life cycle. I&S uses the electrical and technical products of other Siemens Groups in order to enhance productivity and improve competitiveness of companies in the sectors of metallurgy, water treatment, pulp and paper, oil and gas, marine engineering, open-cast mining, intelligent traffic systems and industrial services
SAIL supports earth quake relief work with galvanized sheets
Steel Authority of India's BSL unit has dispatched about 4000 ton of galvanized corrugated sheets GCS for the relief of quake-affected people of Jammu and Kashmir, according to spokesman of the plant. Earlier, the plant had dispatched about 1200 ton GCS for the relief of the affected people of that state.
The GCS were supplied as per directives of the Home Ministry. The sheets would be used for the construction of roofs in earth quake affected hilly areas, the spokesman said
October 2005 crude steel production IISI
World crude steel production for the 61 countries reporting to the International Iron and Steel Institute was estimated to be 96.6 million tons in October. This is 4.6% higher than for the same month of 2004. Total world production for the first ten months of 2005 is 915.4 million tons. This is an increase of 6.2% compared to the first ten months of last year. Excluding China, world crude steel production is 628.6 million tons, 1.1% lower than for the same period of 2004.
Chinese production was 31.7 million tons in October, a rise of 18.9% compared to the same month in 2004. Total crude steel production in China was 286.8 million tons for the first ten months of 2005. This is a rise of 26.5% on the same period of 2004.
Total production in the Asia region was 50.6 million tons in October, an increase of 12.1% on October 2004.
European (25) production in October shows a decrease of 2.5% over the same period last year. France produced 1.7 million tons of crude steel in October, 0.6% higher than in October 2004. Crude steel production in Germany was 4.1 million tons in October, an increase of 5.6% compared to the same month of 2004. The United Kingdom produced 1.1 million tons of crude steel in October, 8.8% lower than for October 2004.
Preliminary crude steel production in the United States was 8.0 million tons in October, a decrease of 7.6% compared to October 2004. Production in Canada was 1.3 million tons, 5.0% lower than in October 2004.
Blue Stream inaugurated & a new pipeline proposed by Mr Puitn
Russian President Mr Vladimir Putin raised the possibility on Thursday of a second pipeline under the Black Sea carrying Russian natural gas and oil to Turkey. There is an opportunity to build another oil or gas pipeline under the Black Sea, Mr Putin said at a ceremony in the Turkish Black Sea port of Samsun held to inaugurate the Blue Stream gas pipeline. Turkeys Prime Minister Tayyip Erdogan and Italian Prime Minister Silvio Berlusconi also attended Thursdays ceremony. Italys Eni and Russias Gazprom built the gas pipeline from Russia to Turkey.
Blue Stream gives us an opportunity for shipping gas to other third countries. There is the opportunity for building new oil and gas transport systems delivering to southern Italy, to the south of Europe as a whole and to Israel, Mr Putin said
The Blue Stream Natural Gas Pipeline between Turkey and Russia, whose construction begun in 15 January 1997. The length of Blue Stream's section in Russian territory is 373 km, of which 308 km consist of pipes with a 56 inch diameter and 62 km of pipes with a 48 inch diameter. The Black Sea passage between Djubga and Samsun is 309 km, and consists of two parallel lines with a diameter of 24 inches. The section in Turkish territory between Samsun and Ankara is 501 km long, and has a diameter of 48 inches.
This year Blue Stream will transport 3.7 billion cubic meters of gas. If Blue Stream reaches its planned capacity, then overall Russian gas exports to Turkey will be 30 billion cubic meters a year
Chinas top coal producer Shenhua plans to increase coal price
China's largest coal producer, the Shenhua Energy Co Ltd may lift its coal price next year, the China Securities Journal said in a report on Friday, citing Shenhua Chairman Mr Chen Biting. Mr Chen predicted the coal price will rise in the fourth quarter as winter comes and inland provinces begin to stockpile coals. He expected a high price level next year.
At present, the contractual price of the coal supplied by Shenhua is some 20 yuan (about 2.5 US dollars) per ton lower than that supplied by other coal producers in the country. So, Shenhua will consider raising the price next year in line with the circumstances then, Mr Chen said.
He also said that the slight coal price fall in the past two months would not have much unfavorable influence on Shenhua's performance this year, as 85% of its coal sale is realized through long-term contracts.
Mr Chen also disclosed that the company is preparing for acquisitions in and outside China. Shenhua turned out 101.3 million tons of coal in 2004, accounting for over 5% of China's total. Its verified coal reserve amounted to 5.9 billion tons by the end of 2004. The group aims to produce 200 million tons of coal and becomes the world's largest coal supplier and coal clean transformation base by 2010
New order for Concast from Jiangyin Xing Cheng Special Steel
Jiangyin Xing Cheng Special Steel Works Co. Ltd located in Jiangyin, Jiangsu Province, PR China, has placed an order with Concast AG, Switzerland, for the supply of a three-strand bloom caster. This order follows the successful operation of the first bloom caster supplied by SMS Schloemann-Siemag in 1996.
The new caster, which will be fed from the new 80 t converter melt shop at Jiangyin that is currently under commissioning, will be used to extend Jiangyins leadership position in the production of high-quality steel grades for the Chinese automobile industry and pipe steel.
The new bloom caster is designed for an annual production of approximately 900,000 tons of good bloom. It will cast a bloom size of 370 x 490 mm and be equipped with state of the art technology such as submerged casting by stopper control, resonance mould and hydraulic oscillation, mould and strand stirrers, mechanical soft reduction, as well as a sophisticated process control system for dynamic control of process parameters and assurance of the product quality.
Concast AG forms part of the Metallurgical Plant and Rolling Mill Technology Business Area of the SMS group. SMS GmbH is the holding for a group of companies internationally active in plant construction and mechanical engineering relating to the processing of steel, non-ferrous metals and plastics. The group is divided into the Business Areas of Metallurgical Plant and Rolling Mill Technology, Tube, Long Product and Forging Technology and Plastics Technology.
US House repeals Byrd amendment
In narrowly approving budget cuts early Friday, the House repealed a controversial law that passes tariffs on to US companies that lodge complaints against foreign trade practices. Attacked as corporate welfare, the 2000 law known as the Byrd amendment had redirected about $1 billion in fees from government to corporate coffers through September, and half of that had gone to five companies.
When foreign companies sell products at unfairly low prices, a practice called "illegal dumping," the Byrd amendment not only imposes higher tariffs on those products, but directs resulting duties to the U.S. companies that bring complaints against the foreign competitors.
The largest chunk, $205 million, went to Timken Co of Canton, Ohio. The company is hopeful that the Senate, which has shown strong support for the Byrd amendment, will make sure the law stays in place when it works with House leaders to reconcile budget cuts. "The Byrd amendment adopts the simple principle that companies and workers hurt by unfair trade practices have the opportunity to rebuild their industries," said Mr Jeff Dafler, a spokesman for Timken.
Khartzisk to supply pipes to Gazprom for North European Pipeline
Khartzisk Pipe Mill and Gazprom have reached an agreement on supply of approximately 400,000 MT of large diameter pipes in 2006 for North European Pipeline project. It is reported that Khartzisk will supply LSAW Pipes of 1420 mm diameter with external anti corrosion polyethylene coating and with a maximum wall thickness of 29.7 mm with steel grade API 5L X80.
As per the project standards, the required working pressure of the pipeline is be 100 Mega Pascal and X80 pipes can withstand a working pressure of up to 120 Mega Pascal
Ukrainian pipes would be used for the onshore part of the North European pipeline, construction of which would begin from the end of this year, said Gazprom.
Outokumpu invests in ferritic grade stainless steel production
Finnish steel manufacturer Outokumpu has announced that it is to invest some Euros 13 million euros in a project to begin production of ferritic grade stainless steel at its Tornio steel factory. The ferritic grades of SS do not contain nickel.
The delivery capacity of ferritic grades will be some 60,000 tonnes, according to Outokumpu. The total capacity of the Tornio factory is 1.2 million tonnes.
US steel service centre inventories reported at 7 year low
It is reported in a US Metals Service Centre Institute's monthly industry October survey that the total US steel service centre inventories were down 2.2% from September to 12.7 million short tonnes equivalent to 2.7 months supply, 20.3% less from the peak in January 2005
"At 12.7 million short tonnes, this is the lowest level since April 1998. This is very bullish for the steel market," commented Mr Michelle Applebaum, of Michelle Applebaum Research. Carbon steel inventories also declined 2.3% to 11.2 million short tonnes and were down to 2.6 months of supply, compared to September's 2.7 months.
Carbon bar inventories are down 3.1% from September, and down 13.4% from the peak in October 2004. At 1.9 million short tonnes equivalent to 3.3 months supply the lowest inventory level since March 2004," said the MSCI report. Carbon flat-rolled inventories dropped 2.5% from September, and the month's supply moved down to 2.4 months': the lowest level since March 2004. Carbon plate inventories slipped 1.5% from September, and plate stocks were last at this low in June 2004. Carbon pipe and tube inventories fell 1.6% from September, and are at a 19-month low. Inventories of carbon steel structural products edged 0.6% higher from September, but are at the second-lowest level since December 1997. "Structural inventories are down 23.6% from the peak in May 2004," concluded MSCI.
Mittal Steel announces investments in Kazakh assets
It is reported in local dailies that Mittal Steel is planning to invest $500 million in its assets in Kazakhstan over the next five years. "We're going to invest $500 million in the next five years," Mittal Steel CEO Mr LN Mittal is reported to have said during a press conference in Temirtau
It is reported that the focus on of these investments would be towards development of the coal sources & setting up of section rolling facilities at Mittal Steel Temirtau to satisfy the needs of the Kazakh construction industry.
Japan Oct crude steel output falls
Crude steel output in October fell 0.6% from a year earlier to 9.68 million tonnes, its fourth consecutive month of decline, the Japan Iron and Steel Federation said. Month-on-month, output rose 5.6%
Crude steel production of blast furnace operators dropped 1% from the previous year to 7.04 million tonnes in October, the first fall in eight months, while output at electric furnace operators rose 0.7% to 2.64 million tonnes, marking the first rise in nine months.
From January to October, crude steel production reached 94.24 million tonnes, up 0.6% over the corresponding period in the previous year.
Siemens to supply automation and drives for new Baosteel plant
The Siemens Industrial Solutions and Services Group (I&S) has received an order from the Shanghai Baosteel Group Corporation Shanghai (Baosteel), China, to supply all the automation and drive equipment for a new, five-stand, coupled tandem pickling line. The new plant is scheduled to start production at the end of 2007. This year, Siemens has already received orders from China for two comparable projects.
With its new tandem cold mill coupled with pickling line No. 5, the Bao Steel wants to increase its production capacity once again by just less than two million metric tons per year. The new plant is the third to be equipped by Siemens. Located in the new cold rolling complex, it is intended to produce mainly high-strength steel for the automotive industry.
The project includes basic and process automation as well as technological models, technological control systems and the necessary drives. The contract is worth around Euros 15 million.
For the mill, Siemens is supplying the drive systems and all the automation equipment. Cylindrical-rotor synchronous motors fed by DC link converters will be used. Automation of the plant will be based on Siroll CM and will also encompass the technological control systems and process automation. A central element is the thickness control system based on an advanced mass flow concept... As a result, it will be possible to ensure the tight tolerances demanded by customers in the automotive industry
The contract also includes HMI equipment with user-friendly process and plant diagnostic functions. In addition, Siemens will supervise installation of all the components as well as commissioning and will provide customer training as well. The power supply system, the motors for the auxiliary drives and all the infrastructure installations will be provided by Chinese companies.
The Siemens Industrial Solutions and Services Group (I&S) is the integrator of systems and solutions for industrial and infrastructure facilities and global service provider for the plant and projects business covering planning, installation, operation and the entire life cycle. I&S uses the electrical and technical products of other Siemens Groups in order to enhance productivity and improve competitiveness of companies in the sectors of metallurgy, water treatment, pulp and paper, oil and gas, marine engineering, open-cast mining, intelligent traffic systems and industrial services.
Mittal Steel Temirtau celebrates 10th anniversary
The President of Kazakhstan Mr Nursultan Nazarbayev has sent congratulatory letter to the administration and the staff of Mittal Steel Temirtau on the occasion of its10th anniversary. "Nowadays Mittal Steel Temirtau is one of the largest steelmaking companies of the world which not only develops the domestic metallurgic and coal industries but also creates favorable working and recreation conditions for its workers, settles many social issues in Temirtau, mining and other towns of Karaganda oblast," the message reads.
The President of Kazakhstan expressed gratitude to the veterans and personnel of the industrial plants "for the devotion to the profession and participation in education of the new generation of metallurgists. Your worthy work contributes to the progress of Kazakhstan."
Highveld Steel and Vanadium Corp announce delisting from FSE
Highveld Steel and Vanadium Corporation Limited announced that it has decided, based on very low trading volumes and ongoing costs, that the listing of the Company's shares on the Frankfurt Stock Exchange be terminated. The Company has notified that the ordinary shares were officially delisted by the Frankfurt Stock Exchange as of close of business on November 11, 2005.
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