November, 22 2005
Orissa government may stop more MoU signing
Orissa government, after signing of 43 MoUs totaling to 58.04 million tonnes of steel projects, with a total projected investment of Rs.133,656 crore, has now woken up to the problems of availability of land and linkage of iron ore mines, coal mines and water supply for the new projects and may not sign any further MoUs
Russian MMK along with Uttam Galva has already made a presentation for setting up a 10 million tonne plant and it is rumored that UK based Corus is likely to make a presentation to the government during this week. It is also reported that besides MMK and Corus some small companies have also evinced interest in setting up steel projects in the state.
It is reported that the state government is going to put a cap on the signing of MoUs in steel sector but is also thinking of accommodating some more projects in place of the companies shying away from the MoUs. It is reported that about a dozen companies including the AML Steel & Power Ltd., Sunflag Special Steels Ltd, Agrim Steel Industries Ltd have developed cold feet on their projects.
Mitsui picks up 10% stake in Ruchis new steel mill in Kutch
It is reported that Mitsui and Company has picked up a 10% equity stake in Ruchi Group's Rs 600 crore green field steel projects, Indian Steel Corporation Ltd, for manufacturing CR, galvanized and color coated steel products located near Kandla in Gujarat.
The designed production capacity of ISC is 400,000 tonnes PA for the cold rolled steel and 270,000 tonnes PA for galvanized products including color coated products. It is expected to reach full operation by 2007. The project would target the booming construction and auto sectors in India, which is witnessing robust growth.
Mesco Steel on the path of recovery
Ms Rita Singh led Mesco Steel has started pig iron production from its first blast furnace, while the second one will be commissioned in April 2006. The company is eyeing an Rs 400 crore turnover from exports and domestic sales. The company, which delisted from the Bombay Stock Exchange in 2004, is trying to get re-listed on the National Stock Exchange. At present, it is listed on a few regional stock exchanges
Mideast Integrated Steels Mesco was incorporated in 1992 and went public in the mid-nineties. Soon after, the company landed up in a financial mess, which affected its fortunes. With the upturn in the steel industry as a whole, Mesco is planning to take its steel making capacity to 2.5-3 million tonnes by 2008-09. With 60 million tonnes of iron ore deposits under its belt in Orissa where the steel plant will come up, it is in a good shape to face the next downturn.
Armed with financial support from Stemcor, an international metal trading giant, who recently picked up a 10% stake in the company, Mesco is looking at one-time settlements to pare its debt burden. The company is also banking on JV's with Stemcor and Chinese Sinosteel Corporation for the technical, financial and marketing support.
TATA hopes to start building SA ferrochrome plant in January
Despite being somewhat disappointed about the extended time it had taken to clear South Africa's environmental hurdles TATA Steel expects to begin construction of a new R600 million high carbon ferrochrome smelter in Richards Bay in January. The first phase of the project is being designed for 120 000 tonnes per year with aim to double the output in second phase. Phase one of the project would take 18 months to construct and phase two construction is expected to start in 2008 to commence full capacity production by 2009.
TATA Steel MD Mr B Muthuraman is reported to have said that its environmental impact assessment process had, at 35 months, exceeded South Africa's 18 to 20 month approval period norm. However, he added that a record of decision was now imminent and definitely expected before the end of the year. It also emerged that the company had been forced to relocate the project by about one kilometer after food packaging company, Mondi, complained that the original location was too close to its hygiene-sensitive facilities.
Mr Muthuraman said that once the authorities had given the go ahead, it would move rapidly to implement the project, which, initially, would convert imported Indian chrome ore into higher-value ferrochrome for export on to the world market. He indicated that, in the long run, the company would seek to include locally-sourced chrome-ore into the mix.
Mr Muthuraman said that Richards Bay had been selected ahead of a competing site in Australia, owing to South Africa's competitively-priced power as well as the fact that Richards Bay had an efficient deep-water harbor. He said access to skilled labor and, eventually, South Africa's extensive chrome-ore resources had also been also important differentiators
CIL asked to partner with private steel co for overseas coal mining
The Energy Co-ordination Committee headed by Prime Minister Mr Manmohan Singh has, in addition to fast clearance for setting up Coal Videsh Limited, directed Coal India Ltd CIL to explore possibilities on forming JVs with leading Indian private sector companies like TATA Steel, JSW, Ispat Industries and Essar Steel etc for acquiring coal mines abroad
CIL was identifying overseas properties on its own and had initial discussions only with public sector steel major SAIL over partnerships. Though the proposal for setting CVL was approved by the CIL board this year, the coal ministry is yet to give the go-ahead.
The ministry has already constituted a dedicated group headed by Parakh to plan investments in coal mining acquisitions abroad in Australia, Indonesia, Mozambique and Zimbabwe. A dedicated task force has also been set up in CIL in the form of Coal Videsh Department at its headquarters in Kolkata.
The proposed CVL will accrete overseas reserve and participate in import of coking and high grade non-coking coal to meet the domestic deficit. As per the blueprint prepared by CIL, its overseas arm would contribute 10 million tonne of coal by 2010 and 50 mt by 2020.
Monnet Ispat to acquire Zambia mine
It is reported that Steel and sponge iron major Monnet Ispat has finalized a deal to acquire a manganese ore mine, estimated to have reserves of over 30m tonnes, in Zambia for an undisclosed sum. It is also reported that Monnet Ispat is also planning to set up a ferro alloys plant in Zambia and the company plans to use the manganese ore solely for its captive purpose. It expects that availability of cheap power, along with captive mine, will help to significantly reduce the operational cost of the ferro project there.
The manganese ore mine acquisition is part of the companys backward integration process. The company manufactures sponge iron and steel. Earlier, as part of backward integration, the company had started producing coal from its own mine, thereby saving substantially on input costs. The proposed plant in Zambia will be Monets second project in this segment, the first being a 0.5 million ferro alloy plant in Raipur
The companys acquisition in Zambia comes close on the heels of its acquisition of an iron ore mine in Orissa last month having total reserves of about 30 million tonnes
Nagarjuna Construction bags highway order
Nagarjuna Construction Company Ltd has announced that the company along with its JV partners has bagged the contract for the construction of an elevated road on the Bangalore-Hosur Section of National Highway-7.
The road will be built from Silk Board Junction to Electronic City Junction in Bangalore on Built, Operate and Transfer (BOT) basis, Nagarjuna Construction said in a statement.
The project has a concession period of 20 years, including the construction period of 24 months. The project value is about Rs7.65bn and the company's share in the project will be approximately Rs2.55bn.
NLC & TNEB float a JV for 1,000 MW power plant
State owned Neyveli Lignite Corporation NLC and the Tamil Nadu Electricity Board TNEB have jointly floated a new company for taking up a 1,000 MW coal based Power project in Tuticorin at an estimated cost of Rs 4,500 crore.
The project envisages usage of about five million tonnes of coal per annum. The fossil fuel would be obtained from Talcher Coal Field in Orissa. The proposed project would have provisions to utilize imported coal for blending. Two units of 500 MW power plants would be set up. The new plant would be established adjacent to the existing TNEB Tuticorin Thermal Power Station and land required for the joint venture would be obtained from Tuticorin Port Trust on a long term lease basis.
Baosteel announces price cut for Q1 2006
Shanghai Baoshan Iron and Steel Co Ltd Baosteel, China's largest steel maker has announced its price reduction details for Q1, 2006 with prices of most its steel varieties posting substantive cutbacks compared with Q4, 2005 prices. The new price policy is now only circulated within the Baosteel and traders and consumers are expected to order Baosteel's products at the new prices
1. HR Plate by an average of RMB 700 PMT ($87)
2. Common CR by an average of RMB 800 PMT ($99)
3. CR Full hard by an average of RMB 1000 PMT ($124)
4. Galvalume by an average of RMB 1000 PMT ($124)
5. Color coated by an average of RMB 800 PMT ($99)
6. Silicon steel by an average of RMB 1000 PMT ($124)
7. Pickled HR by an average of RMB 1200 PMT ($148)
8. Hot dipped galvanized by an average of RMB 800 PMT ($99)
Baosteel follows quarterly pricing system and had fixed prices of steel products for Q4 of 2005 almost three months back, since than the Chinese steel market prices have moved south and this announcement comes as a price correction to come to market levels.
But at the same time it is setting the pitch for January March quarter pricing scenario, as other producers in China as well as in neighboring countries in Taiwan and South Korea are expected to follow suit
EU puts AD on SS fasteners from China, Taiwan, Indonesia, Thailand and Vietnam
European Union said it has imposed anti dumping duties ranging from 7% to 27.4% on imports of certain stainless steel fasteners and their parts from China, Taiwan, Indonesia, Thailand and Vietnam. Vietnamese producers are subject to the lowest duties of 7% whereas the highest duties of 27.4% apply to Chinese companies.
The ruling, published in the Official Journal of the European Union, also announced that anti-dumping procedures launched against imports of the same products from Malaysia and the Philippines have been dropped. The notice said the duties were imposed to protect European producers of stainless steel fasteners and their parts.
Timken to increase specialty steel prices
Timken Latrobe Steel, a subsidiary of Timken, announced that it would increase prices by 3 to 8% on all remelted aerospace alloys. The price change will be effective immediately on all new inquiries and for all new orders received beginning Dec. 1, 2005. Raw material surcharges will remain in effect.
"This price increase will enable Timken Latrobe Steel to recover the increasing operational costs that we are experiencing throughout our entire manufacturing process," said Mr Hans J. Sack, president of Timken Latrobe Steel. "Although Timken Latrobe Steel has a surcharge mechanism to reflect our direct consumption of natural gas, we continue to experience higher costs for operating supplies due to the effect of energy prices on our vendors' operations."
Timken Latrobe Steel, a subsidiary of The Timken Company, is a leading specialty steel producer in North America. The Timken Company keeps the world turning, with innovative ways to make customers' products run smoother, faster and more efficiently. Timken's highly engineered bearings, alloy steels and related products and services turn up everywhere - on land, on the seas and in space.
POSCO hits Tokyo stock market
POSCO has announced that its shares will be traded on the Tokyo Stock Exchange from Tuesday as it has successfully completed its issuance of overseas depositary receipts in Japan. The company said it has sold 14 million overseas DRs, which represents 4% of the company's outstanding shares.
The Pohang based company, established in 1968 as a state controlled company using reparations paid by Japan after its defeat in World War II. Posco became a publicly traded company after the government sold its controlling stake in 1988. POSCO has already listed itself on bourses in New York and London in 1994 and 1995, respectively. The company has originally intended to get listed on the Tokyo Stock Exchange in early 1996, but scrapped its plan as its DR prices traded in New York and London had gone bearish.
According to POSCO, the Tokyo listing represents an opportunity for the company to raise its international image and gain recognition among Japanese investors, while establishing a foothold from which to make inroads into the Japanese market for high-grade steel dominated by locally-based Nippon Steel Corp. and JFE Holdings Inc
AK Steel elects Mr Wainscott as new chairman
Mr James Wainscott, president and CEO of AK Steel Holding Corp has been elected chairman of the board of directors, effective January 1, the company announced on Monday. He will continue to serve as president and CEO. Mr Wainscott was named acting president and CEO in September 2003 in an executive management change, and became full-time in those positions in October that year.
"Our board has the utmost confidence in Jim's strategic leadership and he has our complete support," said Mr Robert Jenkins, the chairman since October 2003. "Jim has directed the start of a significant turnaround of AK Steel, and he is intently focused on the remaining critical components to achieve sustained profitability."
"First of all, I want to express my most sincere appreciation to Bob Jenkins for his outstanding leadership and guidance to me and this company as its first non-executive chairman," Mr Wainscott said.
AK Steel, headquartered in Middletown, produces flat-rolled carbon, stainless and electrical steels, as well as tubular steel products for the automotive, appliance, construction and manufacturing markets
Electrical steel prices predicted to rise in 2006
Improving spot market sales of electrical steel are pushing average fourth-quarter selling prices up 3-4% higher than the third quarter. Demand for the higher priced electrical steel products is robust, according to domestic producers AK Steel and Allegheny Ludlum, which is likely to result in even-higher contract prices in 2006.
AK Steel USs largest producer commented recently that spot orders of CRGO are completely sold out for this quarter and their Ohio based mill cannot keep production on pace with demand. Allegheny Ludlum also is described as being in a position of pricing strength as it has been able to both raise base prices and pass through raw material input costs on its electrical steel grades effective November 1.
Explosion at coal mine in Guizhou kills 15
An explosion at a coal mine in southern China killed 15 miners and injured three as per a report in Chinese daily. The explosion occurred Sunday at the Zhongxing Colliery in Guizhou province's Qinglong County
Eight of the 41 miners working underground at the time of the explosion were killed instantly and seven others were trapped in the shaft and were presumed dead 20 hours after the blast
General Motors slash 30,000 jobs
General Motors said today it would cut 30,000 North American manufacturing jobs and close a dozen plants as it struggles to compete with fast-growing rivals led by Toyota Motors. The cuts affect about a quarter of the North American factory work force at GM and are the deepest since it eliminated 21 plants and 74,000 jobs over four years beginning in December 1991. The latest plan, which affects factories in the United States and Canada, allows GM to reduce costs by US$7 billion by the end of 2006
Plants marked for closure include those in Doraville, Georgia, Ontario, Canada, Portland, Oregon and Pittsburgh, an Oklahoma City plant that makes mid-size sport utility vehicles and GM's Lansing, Michigan Craft Center, which makes a poor-selling sport pickup truck. Separately, GM has closed or stopped production this year at three assembly plants in Lansing, Michigan, Linden, New Jersey and Baltimore, Maryland.
This is the largest single US layoff announcement since Kmart said it would cut 37,000 jobs in January 2003, according to employment consulting firm Challenger, Grey & Christmas.
Steel bar prices in North America on the rise
The average market price on merchant bars could rise to $525 in December if other mills follow Nucor's lead and increase transaction prices by $20/ton to offset a recent rise in scrap costs. Analyst Mr John Anton at Global Insight says "the price rebound the mills are seeking in the fourth quarter will meet with only partial success, and will not last past the winter."
Merchant bar purchases have risen by 3.5% to 5% so far this year and demand remains quite firm throughout North America and there has been little import penetration since early in the year. Transaction prices turned north early in 2004 and the average monthly price peaked at $551 in September 2004.
Merchant bars usually reflect the movement in scrap prices, so changes in scrap costs turned bar prices south in 2005. That trend continued to a cyclical low of $430 in July of this year. Market prices turned back north this past August when mini steel mills began insisting on higher prices, which buyers have accepted reluctantly.
AKD seeks $2.2m for Indon pig iron project
West Perth-based AKD Ltd has issued a prospectus seeking $2.2 million to fund a drilling program at the Yogyakarta Ironsands Project and commence feasibility on a 300,000 tonne pig iron plant in central Java. Completing both tasks would earn AKD a 70% stake in the development under an agreement with existing owners PT Jogja Magasa Mining and Nusantara Energy Ltd.
The Ironsands deposit was initially drilled by PT Aneka Tambang in the 1970's and early 1980's. On the basis of this drilling and subsequent test-work, studies completed by Lurgi and Davey McKee in 1985 reported an iron sand deposit containing titani-ferrous magnetite over a 22km by 1.5 km wide strip of coastal plain.
AKD announced earlier this month that global metals group Outokumpu and Krakatau Steel of Indonesia had signed an MOU on the project. The company said Outokumpu's technology division has been commissioned to carry out the feasibility study while Krakatau "intends to be an off take partner" for the pig iron production.
Former CEO presents new challenge to Nucor
Mr John Correnti, former CEO of Nucor Corp who is heading an $880 million JV with Severstal to put up SeverCorr in Mississippi for making flat steel for the outer application of automobiles says that says there's no hidden motive to get back at the company that booted him in an ugly boardroom battle in 1999. "People like to think there is ego involved, but I am a businessman he says. "It's like when I came to Birmingham Steel" after leaving Nucor, he adds. "I built it up and then sold it to Nucor, and I made money for shareholders. There's no bad blood." Mr Correnti formed Steel Orr with a group of investors shortly after the December 2002 sale of Birmingham Steel to Nucor.
The plant is designed to produce 1.5 million tons of steel per year, starting in late 2007. The company plans to produce steel largely for the auto industry in the South, where foreign companies such as Mercedes Benz, BMW and Honda have built plants in recent years. It will produce different grades of steel. But Correnti aims to produce 255,000 tons per year of exposed steel for autos out of the initial 1.5 million tons. The plant will use the compact strip process, called CSP. The process was developed by the German equipment company SMS Demag, with help from Nucor.
Nucor produces steel for many auto uses and has installed equipment at some of its plants to produce higher quality steel. At least one of those plants has the technology Correnti plans to use. Nucor opened the first commercial CSP line at its Crawfordsville, Ind., plant in 1989 and now has four mini mills that use the process. Nucor CEO Mr Dan DiMicco, during an interview, raised doubts that if Mr Correnti can improve the technology sufficiently to produce such high quality steel and state that the exposed steel market remains a target for Nucor.
But SeverCorr will be one up on Nucor in terms of width. Auto companies like a very wide sheet of steel and SeverCorr will make a band 72 inches wide as against Nucor mini-mills width ranges which are much narrower and at best can go up to 66 inches. Mr Correnti considers that width one of his major advantages but he does not consider Nucor his principal competitor. Instead, he envisions going against United States Steel Corp. and other blast-furnace producers.
OneSteel riding on strong domestic market conditions
Australian second biggest steel maker OneSteel Ltd says that its performance so far in 2005-06 is as per internal plan. Chairman Mr Peter Smedley told shareholders at the company's AGM "Domestic market conditions are expected to remain favorable with expenditure in engineering and non residential construction forecast to offset the slow down in residential construction. However, we are monitoring closely the potential impact higher oil prices may have on the segments that OneSteel serves."
MD Mr Geoff Plummer told journalists he did not think a rise in oil prices would have much of an impact in the short term. "Medium to longer term, unless the economy domestically or international really goes through a big shock and I don't think it is going to have a huge impact," Mr Plummer said.
Nor did he think ramping up of steep production in China would have a major impact. "I don't think they're looking to flood the world with cheap steel.They've got too many problems in terms of scarce capital, scarce energy and whiles they have low labor costs they have other natural disadvantages, I think, that preclude them from aiming at anything other than self sufficiency."
Locally, domestic conditions still remained favorable for OneSteel's business with a soft residential market being offset by stronger construction activity. Rural business was flat due to the drought and while some manufacturing was negatively impacted by consumer sentiment and oil prices, these factors were not having a huge impact on OneSteel at this stage, Mr Plummer said.
PSM privatization - Pre qualification of bidders
The Privatization Commission Board is all set to pre qualify potential bidders for the privatization of Pakistan Steel Mills Corporation on Tuesday. The minister of privatization appointed a committee for the privatization of Pakistan Steel Mills a few days ago and the privatization Commission has set the date of Dec 31 for the privatization of Pakistan Steel Mills Corporation.
The 13 parties that have submitted the Statement of Qualification are
1. Al-Tuwairqi Group of Companies, Kingdom of Saudi Arabia, with Arif Habib Group of Companies, Pakistan
2. Magnitogorsk Iron & Steel Works, Russia
3. Noor Financial Investment Company, Kuwait
4. Shanghai BaoSteel Group Corporation, China
5. Investment & Development Office of Government of Ras Al Khaimah, United Arab Emirates
6. International Mineral Resources, Switzerland
7. Aljomaih Holding Company, Kingdom of Saudi Arabia
8. International Industries Ltd, Karachi
9. Hassan Associates (Pvt) Ltd, Karachi, with Med-Europe Commodities International sal
10. Privilege Developers (Pvt) Ltd with SEKYRA as Eastern Europe
11. Aqeel Karim Dhedhi Securities (Pvt) Ltd, Karachi
12. Nishat Mills Limited, Lahore
13. System Capital Management, Ukraine.
Tire cord steel business strong
According to market research conducted by steel manufacturer Corus, the automotive industry is demanding premium quality steel at an unprecedented rate.
Much of this demand comes from the Far East and Central and Eastern Europe, where tire production is increasing at a rapid pace.
In China alone, consumption of steel tire cord has increased by 30% a year since 2001. This year, the market is expected to grow to more than 300,000 tonnes.
In response Corus has invested 14 million in rod mill enhancements to boost its ability to produce, handle and distribute these premium steels
Siemens to builds one of world's fastest trains in China
Siemens AG will make three trains that run at top speeds of 300 kilometers an hour and help Tangshan Locomotive & Rolling Stock Work build the remaining 57 locomotives in a $788 million contract. Kawasaki Heavy Industries Ltd. and five Japan-based companies are in talks to build another 60 trains that can run at the same speed
China will use the first Siemens Tangshan train on a 137 kilometer route linking Tianjin port with the Chinese capital, scheduling it for completion by the time of the 2008 Beijing Olympics, Siemens said.
The top speed of the Siemens-Tanshan trains will be comparable to the TGV system of France and one of the shinkansen bullet trains in Japan. West Japan Railway Co. has been running since 1997 a 300 kilometer an hour Sanyo Shinkansen service between Shin-Osaka and Hakata.
Siemens and Germany's ThyssenKrupp AG helped China build a train in 2002 in Shanghai capable of running at a top speed of 430 kilometers an hour. The so-called maglev train covers a 35- kilometer route from Shanghai's Pudong airport to the city's Longyang subway station in less than 8 minutes.
Kiwira coal mine to increase production
The Kiwira Coal Mine KCM in Mbeya Region is expected to increase production from 150,000 tonnes to 500,000 tonnes after a local investor put his money in the mine. The miner has earmarked more than 2 billion to repair relevant machines and the infrastructure and to buy other mining machines.
The local investor Ambassador Mr Evans Mapundi, who is the Director General of the mine held 88% shares in the coal mine while the government held the rest has said that his intention was to make the mine produce some one million tonnes of energy a year after installing new machines at the mine.
The KCM General Manager, Abdul Adam said that the repair of the mine has started, Adam told PST without giving the amount of money the local investor had put in the mine. KCM produces six megawatts of electricity while the mine uses one megawatt in its operations.
Irans steel production rises by 7.8% in March to September
Iran's crude steel production rose by 7.8% to 5.5 million tons by September 22, marking end of the first half of current Iranian calendar year of 1384, which started on March 21.
Public Relations Department at Ministry of Industries and Mines said on Monday that in the period under study, HR production also rose by 12% percent to 2.5 million tons and the CR production to about 400,000 tons. It also reported increases in long product production
Nucor awarded Plant of the Year for best asset management
Datastream Systems Inc announced that its customer, Nucor Corporation, has won this year's Plant Services Plant of the Year Award. Nucor utilizes the Datastream 7i Asset Performance Management solution to track and manage thousands of assets throughout the country.
Each year, Plant Services awards its Plant of the Year Award to the manufacturing facility that succeeds with the best management, the most innovative maintenance practices, and the best strategy for being competitive in the marketplace. Plant Services magazine awarded Nucor's Darlington, S.C. plant its Plant of the Year Award for being "the embodiment of what's right in manufacturing," including innovative asset management and cutting-edge technology.
Nucor, the nation's largest steel producer, operates 17 steel mills throughout the United States with a total annual production capacity of over 20 million tons and net revenue in 2004 of $11.3 billion.
Datastream Systems, Inc. provides Asset Performance Management software and services to enterprises worldwide. By using Datastream's solutions, customers can maintain and manage capital assets
Paulson & Co asserts for meeting to elect directors in Algoma
Paulson & Co Inc holding directly and indirectly 19% of the outstanding shares of Algoma Steel Inc. asserted the right of Algoma shareholders to requisition a special meeting, elect directors and consider company business as provided by Ontario law.
Mr Michael Waldorf, VP of Paulson, said "Shareholders in a Canadian company have the right to a meeting, to replace directors that are not acting to increase shareholder value, and to advise the board on important matters such as the best use of corporate assets. As Algoma has publicly acknowledged, our firm Paulson & Co. Inc has submitted a legal requisition for a special shareholder meeting. Canadian courts have consistently supported shareholders in exercising such rights. We expect the company to comply with its obligations and a shareholder meeting to be held promptly."
"Despite efforts by the union to mischaracterize Paulson's proposal, our previously announced recapitalization plan merely returns Algoma's excess capital to shareholders. Our firm intends to be a substantial Algoma shareholder both before and after any transaction that a new board of directors may approve. We are and will remain very interested in the short-term and long-term financial health of the company, and we look forward to Algoma's continued prosperity. Even after excess capital is returned to shareholders, Algoma will have the ability to fully fund necessary capital expenditures and to meet pension and health care obligations to employees. We recognize Algoma's importance to the Sault Ste. Marie community and will support the company's efforts on behalf of the community."
Relocating of Schnitzer Steel & Parrys scrap yards likely in Portland
The city of Portland is close to making an official deal to relocate two scrap yards from the Bayside area of the city to another location in the town. The city has been working to redevelop the area where the two scrap yards are located as it seeks to continue its redevelopment of the area to a commercial and residential area. The two companies, E. Perry Iron & Metal and New England Metal Recycling, have been in various stages of negotiations with the city over moving from the Bayside region of the city to an industrial area of the city, one zoned for industrial operations. The city hopes to have both scrap yards relocated within 18 months.
It is reported that New England Metal Recycling, owned by Schnitzer Steel, has much of the relocation agreement worked out, according to a source at the company. We are working on it right now, the spokesman added. The facility is a scrap yard focused on handling various types of ferrous scrap.
A spokesman for E. Perry, however, says that while the new location being offered is acceptable, he feels that the financial component makes it more difficult to make the move. E. Perry, which primarily handles nonferrous scrap, operates on about three acres of land. With the new location, the company initially was offered 10 acres of land, although that number is not confirmed.
General Steel Holdings reports record results for Q3
General Steel Holdings Inc, a leading manufacturer of high quality hot-rolled steel sheets primarily for use in tractors, agricultural vehicles and other specialty vehicles, announced the results for Q3.
The revenue was $26.0 million, a 9.4% increase over revenue of $23.8 million for the Q3 of 2004. Gross profit was $2.7 million compared to gross profit of $3.2 million for the Q3 of 2004. Net income for the Q3 of 2005 increased 45.2% to $782,213 from net income of $538,708in the Q3 of 2004.
For the nine months ended September 30, 2005, revenue was $72.0 million compared to $58.3 million for the nine months ended September 30, 2004, representing a 23.6% increase and net income was $2.4 million compared to net income of $877,395 in the comparable period of 2004 representing an increase of 168.4%.
General Steel Holdings, Inc. and its subsidiary, Tianjin Da Qiu Zhuang Metal Sheet Co Ltd. a PRC LLC, is a manufacturer of high quality hot-rolled steel sheets primarily for use in tractors, agricultural vehicles and other specialty vehicles. Since 1998, it has expanded its operations to six production lines capable of processing 250,000 tons of 0.7-2.0mm hot-rolled carbon steel sheets per year, making the company the largest producer in its product category in China, with a 40% market share of all steel sheets used in the production of agricultural vehicles in China.
Mittal Steel keen on investing in Azerbaijan
It is reported in a local daily that Mr LN Mittal CEO of Mittal Steel, has said that he plans to invest in Azerbaijan. The announcement came at his meeting with President Ilham Aliyev in Baku on last Thursday. Mr Mittal is reported to have said that his company intends to operate in different fields of Azerbaijani economy.
TopICG moves listing to NYSE
Coal miner International Coal Group Inc has announced that it is listing on the New York Stock Exchange under the ticker symbol. The company, which previously traded on the Pink Sheets under the symbol
ICG's chairman is Mr Wilbur Ross, who previously rolled up a number of bankrupt and underperforming steel makers into a conglomerate called International Steel Group. He has formed ICG in April to do the same thing for the coal industry.
Venezuela to consolidate steel industry development
Investment projects involving basic industries in southern Guayana will allow for a sound platform for domestic industrial development as per Minister of Basic Industries and Mining and president of the Venezuelan Guayana Corporation (CVG) Mr Vtor varez.
A working team has identified the projects needed for national development and closely related to iron and steel. Plans include an iron and steel complex and concentration and pipes facilities. In his view, this will add value to Venezuelan raw materials. The ore concentration or enrichment plant will extend about 40 years reserves life cycle, Mr varez reasserted. The project will help clear the sulfur and silica content in the iron, resulting in a high-quality supply.
Natural Resources acquires coal reserves in Ohio and Pennsylvania
Natural Resource Partners LP has closed an acquisition of coal reserves in Ohio and Pennsylvania for $29 million. The partnership paid $10 million in cash and funded the remainder of the acquisition through the use of its revolving credit facility. The reserves were purchased from subsidiaries of American Financial Group and were previously part of the Penn Central Transportation Co.
The latest acquisition consists of 179 million tons of coal reserves in three distinct areas: Southwest Pennsylvania, Central Pennsylvania and Ohio. A significant portion of the Southwest Pennsylvania property is leased to Consol, which is currently mining the Pittsburgh seam from the Enlow Fork mine. The Ohio and Central Pennsylvania reserves are under lease to other operators and will be mined in the future.
NRP estimates that the transaction will generate approximately $1.8 million of coal royalty revenues based on approximately 1 million tons of coal production for the remainder of 2005 and approximately $5.8 million in 2006 from 3.3 million tons of production.
Houston-based Natural Resource Partners is a master limited partnership that is principally engaged in the business of owning and managing coal properties in the three major coal producing regions of the United States: Appalachia, the Illinois Basin and the Powder River Basin.
SA miner Chrometco granted chrome exploration rights
Chrometco has announced that its subsidiary Versatex Trading 12 has been granted a right on the farm Vaalboschlaagte 454KS by the Department of Minerals and Energy. Notification of the granting of this permit, which is adjacent to Versatex's Naboom 451 KS, was issued by the DME on October 26.
The firm now has the right to prospect for chromite ore on these two properties and with this additional prospect area which now includes Vaalboschlaagte, extends the contiguous strike of the LG 6 seam from about 3.3 kilometers to about 5.3 kilometers
Chrometco holds an option to acquire up to 74% of the equity in Versatex Trading 12.
Richards Bay to get R600m boost
The port of Richards Bay, the largest one in South Africa by volume, is to get an R600m boost to improve its cargo handling capacity, a National Ports Authority (NPA) official said. Port Manager Mr Thami Ntshingila said the investment, which will be made in 2006, will enable the port to handle increased cargo volumes spurred by the countrys economic growth.
R443m would be spent on upgrading the coal terminal at the port to export additional volumes from the current annual intake of 74m tons to 90m tons, Mr Ntshingila said in a statement. Improvements would also be made to the bulk liquid berthing capacity at the port in an investment expected to cost R188m.
