November, 04 2005
Indian government approves National Steel Policy
The Cabinet Committee on Economic Affairs CCEA on Thursday approved the National Steel Policy NSP which will enable India to have steel industry of world standards, catering to diversified steel demand. ''The aim of the policy is to make the Indian steel industry globally competitive not only in terms of cost, quality and product mix but also in terms of global benchmarks of efficiency and productivity,'' Information and Broadcasting Minister S. Jaipal Reddy said while briefing media
This will require indigenous production of over 100 million tonnes per annum by 2019-20 from the 2004-05 level of 38 million tonnes per annum. This implies a compounded annual growth rate of 7.3% per annum.
On the demand side, the strategy of NSP would be to create incremental demand through promotional efforts, creation of awareness and strengthening the delivery chain, particularly in rural areas. On the supply side, the strategy would be to facilitate creation of additional capacity, remove procedural and policy bottlenecks in the availability of inputs such as iron ore and coal.
Orissa government signs 6 new MoUs worth over Rs 22,000 crores
The Orissa government on Thursday signed MoUs with six steel companies for 12.35 million tonnes capacity and also inked an agreement with another for establishing projects that would bring in investment to the tune of Rs 22,975 crore to the state.
The details of the MoUs are
1. Jindal Steel and Power Ltd for 6 million tonnes at Deojhar (13,135Cr)
2. Bhushan Steel and Strips for 3 million tonnes at Meramundali (5,828 Cr)
3. Rungta Mines for 2 million tonnes at Kamando (2,275Cr)
4. Stats Steel India (P) Ltd for 0.5 million tonnes at Tange (855 Cr)
5. Jai Balaji Jyoti Steels Ltd for 0.33 million at Tanisar (321 Cr)
6. Brand Alloys Ltd for 0.27million at Palasapanga (307 Cr)
7. Eastern Steels and Power for 0.25million at Lahandabud (254 Cr)
JSPL had earlier signed an MoU with the government on October 18, 2004 for setting up a 2 MTPA capacity steel project with an investment of Rs 3,850 crore in two phases at Deojhar in Keonjhar district. The company, however, came forward with an altered project profile subsequently in July last to establish the 6 MTPA plant in two phases with an investment of Rs 13,135 crore. JSPL, as per the fresh MoU, would now set up a beneficiation plant at Deojhar in Keonjhar district and a steel project at Chhendipada in Angul district. The company, which would require 5,750 acres of land for the projects, would also erect a 900 mw captive thermal power plant in Angul district.
Bhushan Steel and Strips Ltd signed an agreement for establishing a 3 million tonne steel plant with an investment of Rs 5,828 crore. Bhushan Steel and Strips Ltds 3 MTPA project would come up at Meramundali in Dhenkanal district which would also have a 155 mw power plant.
Rungta Mines Ltd proposed a 2 MTPA steel project at Kamando in Sundargarh district and Jharbandh in Dhenkanal district at a cost of Rs 2,275 crore. Incidentally, the project would be split into 1 MTPA each at the two sites.
The other companies, which signed MoUs on Thursday, are Rungta Mines Ltd., Stats Steel India (P) Ltd, Jai Balaji Jyoti Steels Ltd, Brand Alloys Ltd and Eastern Steels and Power Ltd. The other four companies planning steel projects would be smaller in size. While Stats Steel would set up a 0.50 MTPA project at Tangi in Cuttack at a cost of Rs 855 crore, Jai Balaji Jyoti Steels Ltd proposed to have a 0.33 MTPA project at Tanisar near Lathikata in Sundargarh district with an investment of Rs 321 crore. Brand Alloys Ltd and Eastern Steels and Power Ltd planned to set up 0.27 MTPA (Rs 307 crore) and 0.25 MTPA (Rs 254 crore) projects at Palasapanga in Keonjhar district and Lahandabud in Jharsuguda district, respectively.
Pakistan may open import of steel items from India
Pakistan has added around 300 more items in the list of importable items from India. The list was finalized at a meeting of the Pakistans ministry of commerce held earlier this week, and stakeholders were asked to convey their viewpoint by Dec 31 regarding the possible impact on the local industries, as reported in a local daily
The import of these items would be allowed from January next year, and the items would be included in the Appendix-G of the Import Policy Order 2005 after incorporating the viewpoint of all the stakeholders and local industries.
The exact classification of suggested list is not clear but it is reported to include flat rolled products of iron or non alloy steel, hardened and tempered steel strips, bars and rods of stainless steel, angles, shapes and sections of stainless steel, tinplate containers and parts thereof, cans which are to be closed by soldering of crimpling, gas cylinders, cryogenic tank etc.
The Pakistan government had already allowed the import of around 775 from India and the list of the items was notified in the Import Trade Policy Order 2005 after the announcement of the Trade Policy 2005.
Essar & Uttam Galva eying old POSCO mill
It is reported that POSCO is in talks with Essar Steel and Uttam Galva to sell its 2 million tonnes steel mill at Kwangyang in South Korea.
A Posco executive today confirmed that talks were on with the private Indian steel companies and that a final decision on the sale was yet to be taken. Essar Steel and Uttam Galva have expressed the willingness to buy the old mini-steel mill and the company is evaluating their offers, said the executive. But he refused to discuss what price POSO was expecting for the Kwangyang plant, which had a capacity to produce two million tonnes a year of hot steel.
An Essar Steel spokesperson said, POSCO has certain steel equipment to be sold. We understand that they have approached various steel manufacturers, including us. It is too premature to comment on this. A spokesperson of Uttam Galva said the company did not comment on market speculation.
Essar Steel had, in September this year, purchased two units of South Korea's INI Steel for about Rs 437 crore. These mills use the corex technology to produce steel.
CIL's investment arm by end of 2005-06
Coal India Limited CIL, India's largest coal producer, will set up an investment arm for acquisition of coalmines abroad by the end of current fiscal. "We have applied to the government for setting up of Coal Videsh Limited. We expect approval this fiscal," CIL CMD Mr Shashi Kumar told press.
CIL is targeting coal mines in Zimbabwe, South Africa, Mozambique, Australia and Indonesia. Mr Shashi Kumar added that Coal Videsh Limited is looking at acquiring equity in running mine or a direct acquisition of a coal block.
RINLs VSP reports October performance
Vizag Steel achieved an impressive performance on all fronts, producing 333,255 ton of Hot Metal, 295,377 ton of Liquid Steel and 237,016 ton of Saleable steel during October, 2005.
Production of 200,200 ton of Billets, which was 127 per cent of the rated capacity, was the best production for any month since inception. The production of 2,95,377 ton of Liquid steel, 81,013 ton of Bars and value added production of 1,00,110 ton during October, 2005 were the best.
Indian Seamless bets big on exports
Indian Seamless Metal Tubes Ltd ISMT, which is in the process of consolidation as a merged entity, would look at overseas markets for growth. "Our driver for growth is exports. They have grown by 100 per cent last year," said Mr Rakesh Duda, Resident Director of ISMT.
ISMT has emerged out of the merger of Indian Seamless Steels and Alloys Ltd and Indian Seamless Metal Tubes.
Although the company's portfolio of products has widened, it wants to focus on precision tube manufacturing. ISMT offers a variety of precision seamless tubes to tier-1 suppliers of the automobile industry, bearing manufacturers, general engineering industry, textile machinery manufacturers, mining and oil industry. American Axle & Manufacturing Holdings and SKF are some of the companies to which ISMT exports tubes.
The merger gives the company the advantage of backward integration. Of its total alloy and carbon bearing steel, it uses 60% captive, 40% is sold to third parties. Though rising input costs do pose a problem, ISMT has been able to de-risk itself from steel price volatilities because it has linked the price of its tubes to scrap, which is a major raw material for alloy steel.
Steel forecast from MEPS
UK based steel analysts have published carbon steel forecasts for Northern America, Asia and EU regions
Market sentiment for flat products in North America has improved in recent weeks. The production curbs, amounting to 2.2 million tonnes almost 15% in the second quarter are being extended to the end of 2005. Consequently, there is much less material now in the supply chain. Mill order books are much healthier because import volumes have so far not increased compared to 2004. These factors and higher scrap costs have prompted MEPS to upgrade our forecast for the next twelve months. MEPS envisage a reasonably stable pricing picture in North America in the beginning of 2006 and expect higher import penetration, particularly from the Asian region, in spring, which could put negative pressure on prices. Distributor demand is picking up in the US and Canada. These are the first customers to pull in imports to meet market requirements. MEPS believes that the balance of probabilities lies with the higher imports exceeding the improved demand by a small amount, pushing North American prices slowly down over the Winter and into the Summer months, albeit from a higher starting point.
Production cuts of 7.5 percent were implemented in the flat products segment in the second quarter in EU. Similar decreases are estimated for the third and fourth trimester. The inventory overhang has declined and is likely to be eroded further in the next few months. As a result, the mills were able to gain modest increases in price in negotiations up to mid October. Further small price improvements are now anticipated well into the New Year because we see few signs of import pressure in the short term. However, in mid 2006 we do expect more import penetration now that Asian markets are becoming over supplied. As a consequence, we show prices leveling out during the summer months. MEPS have upgraded our forecast for long product prices for the next twelve months. However, we still believe that prices will slip in negotiations over the coming winter months - before rising again as better weather develops and construction improves.
In case of Asia, MEPS expects average flat product prices to fall further next month and then continue at near that level into January. Cuts in output are taking place in China and most other major producing countries. However, we believe that the current excess inventories are unlikely to be dissipated until the end of 2005. A modest price improvement is anticipated in February after the Chinese New Year holiday in light of the probable improved supply & demand balance. Furthermore, the effects of higher export orders to North America and Western Europe should be filtering through. The improved export performance is likely to continue through the spring and summer of 2006. It is, however, possible that a spate of anti-dumping cases could be brought against Asian producers if export volumes become excessive. The price differential between Asian and Western prices is sufficient to encourage higher volumes of trade from oversupplied regions of the world.
CISA ex-chief sees 5% drop in 2005 Chinas steel output
The former chairman of the China Iron & Steel Association (CISA) said the nation's steel output this year is expected to fall 5% and that is needed to help stem a steady decline in prices. Mr Wu Xichun, now an adviser to the association, did not give a specific figure but said supplies are still running ahead of demand. He added that steel prices were among the lowest in the world and that could cause serious problems if not properly addressed.
'Domestic steel producers will reduce output by at least 5% this year, and YOY consumption growth will be under 10%,' Mr Wu said. But he added that pressure on prices remains.
'China's annual production capacity has already surpassed 400 million tonnes and since May this year, rolled steel market prices have continuously fallen each month. In early October, prices were already down over 20% from a year earlier,' Mr Wu said.
He said China's steel production has recorded annual increases of 20% or more since 2002. During this time, the country's construction and auto sectors have grown at similar rates, and the machinery industry, another heavy consumer of steel, has seen exports up over 30% each year, which has driven steel production capacity even higher.
However, by 2004 the country's steel sector was showing the first signs of overheating,' he said. In 2003, total rolled, billet and crude steel imports were approximately 36.55 million tonnes, but only reached 13.83 million tonnes the following year.
Mr Wu also said that domestic production could be turned to the export market.
Russia & EU sign steel trade agreement
Russia and the European Union signed an agreement Thursday on trade in certain steel products for 2005-06, the Ministry of Economic Development and Trade said. According to the ministry, the agreement urges Russia to supply up to 2.2 million metric tons of steel products to the EU this year and 2.5% more in 2006.
Trade in steel products between Russia and the EU has been regulated and restricted for many years. In view of the EU's enlargement in 2004, Russia and the union signed another agreement that included new EU members.
The agreement signed Thursday is an updated version of the 2004 document. It establishes higher amounts of Russian steel exports to the EU before the end of 2006 when Russia is expected to join the World Trade Organization.
The news release of the European Commission's representative office in Russia said that the sides had also agreed to increase quotas for steel trade, if Russia canceled export duties on waste and ferrous metal scrap. The document allowed part of the quota, 7%, to be transferred to 2006 if it is not used up this year.
SA government to release policy on import parity pricing next week
SA government will release details of its new import parity pricing strategy in the next week. Trade and industry department chief director Mr Nimrod Zalk said that the details of the national import pricing strategy, which was likely to affect the steel, chemicals and aluminium sectors among others, would be released over the coming week. He added that release of details on the national import parity pricing policy would make it easier to conclude talks with Mittal Steel, however it was not entirely clear when talks with Mittal Steel would conclude.
SAs vast number of steel users have pinned their hopes on the talks to bring some relief from steel prices that have been generally regarded as too high. These hopes may have dimmed in the 11 months since the talks were expected to be concluded.
A pricing model that is more benign to steel users than in the past could affect Mittal Steel SAs profits. Government had indicated that it was aware of the steel makers importance to the economy, and hence the requirement for its sustainability. Steel users, notably Harmony and Durban Roodepoort Deep, have objected vehemently to Mittal Steels pricing in the past. The two mining companies have dragged Mittal before competition authorities. The Competition Tribunal was expected to commence hearings into the matter in March next year.
Trade and Industry Minister Mandisi Mpahlwa has singled out import parity pricing as a major constraint to growth in downstream sectors such as metals and chemicals on several occasions. He said that the department had found some domestic prices to be 30%-50% above international prices.
Mittal Steel to modernize Kryvorizhstal
Mittal Steel plans to increase steel production up to 8 million tones annually through the improvement of technology and equipment, Mittal Steels Director Operation Mr Narendra Chaudhari told press
He informed that the company intended to produce flat section. Kryvorizhstal has big potential for increase of product line, he added. There are enough blast-furnaces in the plant and all we need to do is to keep them working, mentioned Mr Chaudhari.
But he also pointed out weak point of the enterprise that the converters were non automatic. In order to prevent pollution by old equipment Mittal Steel will change it by modern one.
We expect increasing of ore production. It may make up to 25 million tones. But there are some problem with agglomeration, concluded Mr Chaudhari.
Corus & Salzgitter targets auto industry with HSD steel
Corus and Salzgitter have claimed that automotive chassis and crash structures will benefit from mass reduction and improved impact resistance from their new jointly developed of high strength and ductility (HSD) steels.
The steels have high manganese content and are intended for use in the automotive industry.
The two firms claims the performance of HSD steels is superior to conventional steels, with strength levels of 600 to 1400 Mpa corresponding with elongations of 70 to 20%, respectively.
Both companies will continue to collaborate on research and development. The various HSD steel grades have been developed for a variety of applications, in particular for parts with complex geometrical structure combined with high strength requirements, such as sophisticated components for mechanical engineering applications.
The makers claims the automotive industry will achieve substantial benefits from mass reduction, improved crash resistance and enhanced design freedom.
Excel Coals Millennium project delays may hurt 2006
Australia's Excel Coal Ltd. has announced that potential delays on the commissioning of its Millennium coking coal project in central Queensland may cause its fiscal 2006 net profit to come in below expectations. Its MD Mr Tony Haggarty said the construction of the coal handling and preparation plant is currently around eight weeks behind schedule.
Excel owns 85% of the Millennium project where contractor Roche Mining, a unit of Downer EDI Ltd commenced open cut mining in late October. The coal handling and preparation plant will have an annual capacity of 6 million tons, around four times current Millennium production. Despite expansion plans, existing rail and port constraints mean the potential to recover any delayed coal sales by June year end would be uncertain, should the plant not be completed on schedule by January, said Mr Haggarty.
He said global demand for export coking and thermal coal continues to grow strongly, driven by China and India, and export coking coal pricing is expected to remain strong driven by upcoming iron ore price negotiations.
Excel produces around 5 million metric tons of coal annually, and is expecting this to grow to around 17 million tons by 2009. It mines both thermal and coking coal for both the domestic and export market.
SMSs new RH unit for Anshan successfully commissioned
Anshan New Iron & Steel Co, located in Anshan, Liaoning Province, China, has successfully commissioned the second RH recirculation degasser, delivered by SMS Mevac GmbH. The scope of supply included engineering, delivery of mechanical key-components, a major portion of the electrical equipment and instrumentation, a metallurgical model as well as supervision of installation and commissioning.
The new RH unit will incorporate a fast vessel exchange system with hydraulic ladle lifting. The unit will also be equipped with a metallurgical TOP lance. Vacuum is achieved by a steam ejector vacuum pump, designed to operate at low steam and condenser cooling water consumption levels. The ladle is transported between the hand-over position and the treatment position by means of a ladle turret, thus increasing the availability of the unit while reducing the utilization of the crane.
The grades that will be produced with the unit are mainly high strength low alloyed HSLA steel for the automotive industry, low carbon aluminum killed LCAK steel, CRNGO CRGO steel for transformers & dynamo, API grades for gas and oil pipelines, ship building steel and boiler steel.
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.
SMS Mevac GmbH forms part of the Metallurgical Plant and Rolling
Mill Technology Business Area of the SMS group.
Northwest Pipe and Lone Star announce marketing alliance
Northwest Pipe Company and Lone Star Steel Company, a subsidiary of Lone
Star Technologies Inc announced that they have entered into a strategic marketing alliance under which Lone Star Steel will be the exclusive marketing representative for Northwest Pipe's API Products in North America.
"This agreement is another step in our plan to improve our product mix, grow our energy market sales volume and generate stronger returns from our Tubular Products business," said Mr Brian W. Dunham, President and CEO of Northwest Pipe Company. "This alliance takes advantage of the available, high quality, efficient manufacturing capacity in our Atchison, Kansas division and gives us instant access to energy markets through Lone Star's well developed, extensive distributor network. We are excited about the opportunities we can create for both of our companies by working together."
"We are delighted that Northwest Pipe has selected Lone Star Steel as the exclusive North American marketing representative for its light wall high strength API line pipe products," stated Mr Rhys J. Best, Chairman and CEO of Lone Star Technologies. "We are always looking for ways to add value to our customers, and Northwest Pipe's size range complements our existing product line. Their geographic location is also an excellent fit for us. As their product offering expands over the next several months, we will be even better-positioned to provide our customers with the broadest range of line pipe products available in the marketplace today."
Northwest Pipe Company manufactures welded steel pipe in two business segments. Its Water Transmission Group is a leading supplier of large diameter, high-pressure, steel pipe products used primarily for water transmission in the United States and Canada. Its Tubular Products Group manufactures smaller diameter steel pipe for a wide range of construction, agricultural, energy, industrial and mechanical applications. The company is headquartered in Portland, Oregon and operates ten manufacturing operations in the United States and Mexico.
Lone Star Technologies, Inc. is a holding company whose principal operating subsidiaries manufacture and market oilfield casing, tubing, and line pipe, specialty tubing products, including finned tubes used in a variety of heat recovery applications, and flat rolled steel and other tubular products and services.
Mittal Canada Inc signs LOI for acquisition of 3 Stelcos subsidiaries
Mittal Canada Inc, a Canadian subsidiary of Mittal Steel Company N.V., the worlds largest and most global steel company, today announced that it has signed a Letter of Intent with Stelco Inc. of Ontario concerning the acquisition of Norambar Inc., Stelfil Lt and Stelwire Ltd.
Norambar and Stelfil are located in Quec and Stelwire is located in Ontario. These facilities complement Mittal Canadas manufacturing operations and will offer a wider product range to better serve our North American customers.
The purchase is subject to a number of conditions, including the negotiation of definitive documentation and court approval. It is anticipated that, if all consents and approvals are obtained as planned, the closing of the transaction will take place by early 2006.
Mr Richard Leblanc, President and CEO of Mittal Canada Inc., said We are delighted to have signed this Letter of Intent with Stelco. The integration of these subsidiaries into the Mittal Steel Group should be beneficial to their long-term viability and competitiveness as well as to their respective employees and communities.
Thyssenkrupp to contribute on focus for steel in buildings
ThyssenKrupp Steel has become involved in academic research and teaching on the subject of building with steel by endowing a chair of Metal Construction in the Faculty of Architecture at Dortmund University of Applied Sciences and will be providing an amount of 400,000 euros over the next five years for this purpose. A corresponding agreement was signed today by the Universitys Rector Prof. Dr. Eberhard Menzel and Dr. Karl-Ulrich Kler, Executive Board Chairman of ThyssenKrupp Steel AG.
The chair will focus on building with steel products and is intended to play a key part in introducing a joint masters degree course in Architecture and Metal Construction. This cooperative venture between ThyssenKrupp Steel and the university will have an integrated approach, taking in all aspects of metal construction including the design and treatment of wall and facade areas. For the first time in architectural studies, it will be possible to integrate building with metal into the design phase for the building owner.
There are also plans for an annual series of lectures on Steel in architecture by experts from business, research and education. In addition, a ThyssenKrupp award will be presented for the best degree thesis including the use of steel in architecture.
In the medium term it is also planned to establish a joint center for the use of steel and metal in architecture. It will focus on an integrated approach to the planning, design, engineering and technology of building with steel. The center will also allow new forms of cooperation between industry and university to be tried out: in the future, planners and designers will work together on an interdisciplinary basis.
Japanese trading houses invest into Australian mines
With prices for iron ore and coal soaring globally, trading companies are funneling investments straight to the source Australia. Itochu Corp. and Mitsui & Co. are planning investments to increase the production capacity of iron ore and coal in Western Australia. The companies are aggressively investing in resource rights in the country because of increased global demand for iron ore and for coking coal used in steelmaking.
Itochu and Mitsui intend to increase by 2008 iron ore production by about 20 million tons, which would make the annual capacity 129 million tons. The required investment is about $1.6 billion (184 billion yen). They are undertaking the project with the world's largest resource company, BHP Billiton Ltd. The three companies will increase production at four mines: Mount Newman, Yandy, Goldsworthy and Mining Area C. The rights are 85 % for BHP, 8% for Itochu and 7% for Mitsui. Itochu will invest about 14 billion yen and Mitsui about 13 billion yen. The increased production volume will be exported to Japan and China, where demand has been soaring. Last year about 100 millions tons was shipped from the four mines to Japan and other Asian markets.
In another project, Mitsui will develop the Lake Lindsay coal mine in Queensland with Anglo American Plc, the British resource development company. The mine will produce 4 million tons of coking and other coal annually. The total development cost is about $500 million (57.5 billion yen). Mitsui, which has 30 percent of the rights, will invest about 17 billion yen. Shipments from the mine will begin in the latter half of 2006, with full production in 2008.
For Mitsubishi Corp., too, coking coal operations are a major source of earnings in Australia. The company owns 50% of six mines in Queensland, with BHP Billiton owning the other 50%. About 48 million tons was produced in 2004. A production increase to 58 million tons is planned for 2006.
Sumitomo Corp., Marubeni Corp. and Sojitz Corp. also hold coal mining rights in eastern Australia.
Georgian minister sells OMZ shares
It is reported that Georgian minister-reformer Mr Kakha Bendukidze has sold his Russian offspring OMZ, one of the largest Russian heavy industry enterprises. A group of Russian investors bought 42.16% of OMZ shares from Mr Bendukidze. The deal was reported by the United Financial Group that was organizer of the deal. The sum of the deal, as well as the names of the new shareholders were not revealed.
OMZ is the major heavy engineering company in Russia, specializing in engineering, manufacturing, and servicing of knowledge-intensive equipment and machinery for the nuclear energy and mining industries. Besides, OMZ manufactures a wide range of heavy industrial equipment according to third party engineering and engages in the manufacture of specialty steel large size forgings and castings.
The company includes Ural Heavy Machine-Building Plant (Uralmash for production of drilling, mining and metallurgical equipment), OMZ SpecStal (SpecStal for production of specialty steels), OMZ Gornoe oborudovanie i tehnologii (GoiT for engineering and sales of mining equipment) and Komplekt Atom Izhora (Atom for engineering and installation of nuclear power plant equipment). The Company has manufacturing and engineering operations in Russia and the Czech Republic and representative offices in India and China.
Richards Bay Coal Terminal to become biggest facility in the world
Richards Bay Coal Terminal (RBCT) unveiled its plan today to spend about $150.3 million to expand its capacity to 92 million tonnes of export coal, making it the biggest such facility in the world.
RBCT said it has an export capacity of 72 million tonnes of coal per year, and handles about 67 million tonnes currently.
The current export capacity is dominated by the terminals main shareholders, BHP Billiton through its subsidiary, Ingwe, Anglo American and Xstrata.
Shaanxi Coal signs contract to supply 84.5 million tonnes of Coal
Shanxi Coal Group Co. Ltd. has signed a coal purchase and sale agreement with its key national end users to supply 84.5 million tons of coal in 2006, an increase of 58% from 2005.
In 2004, Shanxi Coal Group achieved sales revenue of RMB 6.89 billion and a net income of RMB 563 million. By the end of 2004, the groups assets amounted to RMB 11.45 billion.
In the first nine months of 2005, Shanxi provinces coal output and sales volume amounted to 89.23 million tons and 89.68 million tons, respectively. Shanxi has become the sixth largest coal exporting province in China.
Mr Wilbur Ross plans 3 auto part firms
Billionaire investor Mr Wilbur Ross wants to build three multi-billion-dollar vehicle industry components companies from the heap of troubled suppliers that have piled up in the past two years. Mr Ross was quoted as saying in an interview the $500-billion industry was ripe for radical change and he intended to be "a provocateur of change."
Mr Ross said he wanted to create at least two major new companies within three years, one focused on auto plastics and one on metal parts. Each would be the largest in its niche, with annual sales of almost $15 billion. The third, smaller company would specialize in auto-safety products.
To build his auto steel company Ross will start with the European assets he owns in the former Oxford Automotive, a recently-liquidated Troy, Michigan, firm. The auto-safety business he hopes to build starts out with Safety Components International, a Greenville, South Carolina, company of which he owns 77%.He will start with auto plastics, an area he says he knows better. Auto plastics have about $75 billion in annual sales, Ross estimated.
QGX finds new coking coal seams at Baruun Naran Project
QGX Ltd is pleased to announce that a compilation of new and old metallurgical test results from eight additional dill holes at Baruun Naran has indicated that Seam "P" and three unassigned coal intercepts show indicators of metallurgical coal.
Mr David Anderson, CEO of QGX, commented "We are delighted to have found a third seam, Seam "P", with metallurgical-grade properties. We are also pleased that lab results from three other unassigned coal intercepts indicate metallurgical characteristics. None of these intercepts have been assigned a seam designation. We look forward to delineating Seam "P" and these other unassigned metallurgical-grade intercepts as part of our ongoing development of Baruun Naran.
QGX is a Canadian-based company that has been exploring for mineral deposits in Mongolia since 1994. The Company holds a large area of exploration licenses throughout Mongolia. The Company's most advanced property is the Golden Hills prospect in western Mongolia.
Thai G Steel seeks funds to increase capacity
Thai G Steel Plc, a major manufacturer of hot-rolled steel coils, plans to raise between 3.6 billion and four billion baht through an initial public offering IPO on the Stock Exchange of Thailand to expand its business. About two to three billion new shares will be issued. The IPO date has not been set and the price, which has yet to be finalized, is expected to range between one and two baht, said director Mr Chainarong Monthienvichienchai.
The proceeds will be used to de-bottleneck'' or improve production efficiency in its plant to nearly double its production capacity to 3.4 million tonnes per year.
The 12.8-billion-baht project is scheduled for completion in 2009. G Steel's plant will operate at a capacity of 2.6 million tonnes per year in 2007 before stepping up to full capacity in four years' time.
Nippon Steel, Sumitomo to exchange computer data
Nippon Steel Corp. and Sumitomo Metal Industries Ltd. have agreed to mutually back up computer data on material processing and steel manufacturing to prevent its loss in a major disaster, company sources said Thursday. The agreement is to be formalized shortly, and the data exchange will take place later this year. The data will then be coded to prevent it being illegally accessed.
Nippon Steel's host computer is located in its Yahata Seitetsujo factory in Kitakyushu, while Sumitomo Metal has its at its Kashima Seitetsujo facility in Ibaraki Prefecture. The companies store their corporate know-how exclusively in the respective facilities. The agreement protects the data from being lost if the host computer is damaged in a major earthquake or accident by retrieving the data from the partner's host computer. The system would allow the company struck by disaster to swiftly resume steel production.
After sealing an agreement on a capital and business partnership in 2002 the two steelmakers have bolstered their alliance. Observers see the agreement on the swapping of secret information as an innovative step across corporate boundaries at a time when crisis management is becoming a growing concern for businesses.
Kobe Steel Ltd. did not join the latest agreement, although it has a capital and business partnership deal with the two steelmakers.
Acerinox 9 months net falls 19.2%
Acerinox SA said net profit declined 19.2% to Euro 196.2 million in the nine months to Sept 30 from a year earlier, as lower demand was accentuated by higher raw material prices and slower global economic growth.
Total sales rose 8.8% from a year earlier to Euro 3.257 billion in the nine months period, while EBITDA fell 20.7% to Euro 313.2 million.
In a statement, Acerinox noted, however, that raw material prices have started to decline, as have high inventories, whose levels the steel maker expects to be normalized by year-end.
Algoma Steel Q3 earnings plunge to $30.8 million
Algoma Steel Inc said Wednesday its third-quarter profit fell sharply to $30.8 million from $121.6 million a year ago as quarterly sales slipped to $446.4 million, down from $535.7 million.
"Despite lower steel prices as a result of a softening market, we were able to generate positive cash flow and net income in the quarter," Mr Denis Turcotte, Algoma's president and CEO said. We will continue to focus on cost reduction and developing market opportunities in order to mitigate the effects of continued escalation to the price of raw materials and energy."
Algoma is an integrated steel producer based in Sault Ste. Marie, Ontario Canada.
Alpha Natural Resources Inc announces Q3 results
Leading Appalachian coal producer Alpha Natural Resources Inc has reported net income of $8.2 million for the quarter ended September 30, 2005 as against net income of $5.4 million for the Q3 of 2004
Coal sales revenue in the most recent quarter was $345.2 million, 17% higher than the same period in 2004, with coal sales volumes climbing 4 % to 6.7 million tonnes. The improvement in sales volumes was tempered by erratic rail service in West Virginia and the Great Lakes, and by delayed export shipments from New Orleans caused by Hurricane Katrina
Mainly due to the reduced export sales, sales volumes of metallurgical coal in the third quarter trailed last year's levels by 360,000 tons. Metallurgical coal sales thus accounted for only 32% of total sales volumes for the quarter just ended, compared with 42%for the first six months of the year.
"Alpha's sales volumes were unchanged from the second to the third quarter, but because of the export delays in the Gulf Coast they were weighted much more towards our steam coal business, and steam coal prices are about $30 a ton lower than met coal," said Alpha's president and CEO Mr Michael Quillen. "We anticipate much more vigorous export loadings in the fourth quarter." Alpha expects metallurgical coal sales volumes to recover in the fourth quarter and anticipates a sequential improvement in its gross margin. October sales volumes were strong particularly in the export met markets and sales prices for both steam and met coal exceeded third-quarter average realizations.
Recent domestic contract negotiations have yielded commitments for about 1.5 million tons of met coal in the $80 to $90 per ton range for 2006, net to the mine, depending on quality specifications. Additionally, Alpha's sales force recently recorded several new customer wins in both the foreign and domestic markets.
Sandvik reports Q3 results
Specialty steel and tool maker Sandvik posted a slightly bigger than expected rise in third quarter pretax earnings, but has recorded dip in profitability. Earnings rose to 2.13 billion Swedish crowns ($266.4 million) from 1.69 billion a year ago. The company, which in recent quarters has benefited from strong industry demand and a global mining boom, said overall third-quarter sales rose to 15.55 billion crowns from 13.57 billion a year ago.
Sandvik's materials technology division, which suffered from raw material price rises and low demand accounts for around a quarter of group revenues. Sandvik has said it aimed to reach a margin of 12 percent at the unit sometime this year, and CEO Mr Lars Pettersson said the target might still be achieved. "I would not rule out that we will reach the target," Mr Pettersson told. The division has reported the weakest operating margin in the group for seven straight quarters.
Sandvik, which makes a range of products from stainless steel tubes to milling machines for the auto industry, said demand remained strong in all areas except the European Union.
Paulson & Co requests special meeting of Algoma Steel
Paulson & Co Inc holding directly and indirectly 19% of the outstanding shares of Algoma Steel Inc today announced that it has submitted a legal requisition to Algoma for a special shareholder meeting.
The business to be considered at this meeting is to remove a specified majority of the board of directors and elect replacements, to direct the board to consider refinancing Algoma's publicly traded notes with a new bond offering at the earliest opportunity, to direct the board to consider and bring to shareholders a corporate reorganization in which no less than $400 million of cash is distributed on a tax efficient basis, in exchange for Algoma shares at a premium to the market price. All shareholders would get a mix-and- match election of cash and stock in the company, subject to pro rationing.
The specific resolutions to be voted on at the meeting, along with Paulson's statement of support for such resolutions, will be sent to shareholders after the record date and the date of the meeting are set. Mr Denis Turcotte, Algoma's CEO and the current union representatives are not subjects of these resolutions and will remain on the board of directors.
Pilbara Iron plans spark Indigenous worries
Traditional land owners in the Pilbara, in north-west Western Australia, have expressed concern over the impact of Pilbara Iron's proposed developments in the Robe Valley. The Kuruma Marthudunera people say the heritage values of the valley are being compromised, saying some of the area is a law ground and frequently used for hunting and fishing.
Matthew Sampi of the Kuruma Marthudunera people says they are happy to point out other areas which would be more appropriate. "If they come to see the old people and come and have a talk with the Kuruma Marthudunera people then maybe we could make decisions on where we could find water because we know the area that well, we know where there's water and stuff like that," he said.
Pilbara Iron is planning iron ore mining projects in and around the Robe Valley in the West Pilbara, including water bores, a railway and mining camps. Pilbara Iron says it continues to negotiate in good faith with the traditional owners.
Gerdau & Diaco plan 3 yr expansion
Gerdau SA, Latin Americas biggest steelmaker, increased its stake in Colombias Diaco SA to 57% and plans to expand in the country over the next three years.
Gerdaus president Mr Jorge Gerdau Johannpeter and Mr Juan Manuel Romero, president of Diaco, Colombias largest maker of long-steel construction products, will present the companys plans today.
