December, 01 2005
KIOCL workers marching to Delhi
A day after the Supreme Courts stay order on the petition to re-assess the closure of the Kudremukh Iron Ore Corporation Limited (KIOCL), a 200member delegation from the Kudremukh Workers Union, supported by the INTUC, has decided to travel to Delhi on December 5 to meet Prime Minister Mr Manmohan Singh and AICC President Ms Sonia Gandhi
The delegation will convey to the Centre that stoppage of mining activities would in fact be harmful to the environment. Since the Naxals belong to this region, the closure could also cause a social problem and should be handled carefully
SAIL funds BCCL to enhance coal production of coking coal
It is reported that SAIL has agreed to provide Bharat Coking Coal Limited BCCL a loan of Rs 300 crore to help the ailing state owned company to enhance coal production in return to supply of certain quantity of coking coal to SAIL
The board of directors of BCCL at a meeting in Calcutta today approved SAILs proposal of signing an MoU. BCCL would now seek clearance from Coal India Limited, the holding company of BCCL, before the MoU is signed with SAIL
It is learnt that funds would be used to replace the old equipment and machinery at the Munadih mines in Dhanbad, which is said to have one of the richest deposits of extremely high quality coking coal in the country.
Visa group acquires coalmine in Australia
Visa Steel, which is setting up a 1.5 million tonne steel and stainless steel plant in Orissa, will source its coking coal from this Australian company at a concessional rate as it is reported to have acquired a coal mine at Queensland in Australia
Queensland-based coal mining company Millennium Coal Pty Ltd has been acquired by Visa group's Switzerland-based Visa Comtrade AG. VISAs Chairman, Mr Vishambhar Saran said Visa Steel and Millennium Coal has tied up for a long-term buyback arrangement of 0.5 million tonnes of coking coal per annum and it would be at JSM (Japanese Steel Mill) price, which is on an average less by $2-5 per tonne compared to what other steel producers pay while buying coal from the international market.
SAIL board to see major reshuffle
It is reported that a major overhaul of board of directors of Steel Authority of India Ltd SAIL is likely as the terms of most of the directors is coming to end in next few months. The SAIL board currently comprises eight company directors, two government nominees and three independent directors
It is reported that Mr VS Jain, Chairman SAIL is due to retire on July 24 next year when he turns 60. The Public Enterprise Selection Board (PESB) has already issued notification, inviting applications from candidates interested in filling this post and a new chairman in all likelihood would take charge from August.
Meanwhile, the selection process for appointment of MDs for all the four units of SAIL is reported to be over and Mr R Ramaraju ED projects of BSP is expected to take over as new MD of BSP by June, 2006 from Mr RP Singh, Mr VK Srivastava presently ED works at BSL will take over as MD BSL from Mr UP Singh by January end 2006, Mr VK Gulati ED P&A of DSP will take over as new MD of DSP from Mr SK Bhattacharyya by December end and Mr BN Singh ED raw material division will also take over as new MD of RSP from Dr Sanak Mishra by December end. Mr Nilotpal Roy has already taken over as new MD of IISCO
It is also reported that the term of three independent directors on SAIL board Mr VK Agarwal, Mr PK Sengupta and Dr Amit Mitra is also ending in March.
MSMC identifies 8 coal blocks in Vidarbha region for mining
The Maharashtra State Mining Corporation (MSMC) has identified eight coal blocks in Nagpur, Wardha and Chandrapur districts for undertaking mining operations. These blocks were explored by the states directorate of geology and mining over the last five to six years with an estimated reserve of 250 million tonne of coal of D and E grades.
This will be the first coal mining operation to be launched by MSMC and MSMC plans to take a joint venture partner with adequate coal mining experience for this purpose. Preference will be given to industries with plans for captive mining of coal.
Earlier, coal mining was the exclusive domain of Coal India Ltd. A 1999 amendment to the Coal Mines (Nationalization) Act, 1973, changed that, allowing private entrepreneurship in the sector. MSMC has written to the Centre to grant it the lease for the eight coal blocks. It is banking on Mineral Conservation and Development Rules which says that a state government undertaking can exploit mines explored by that states DGM, sources said.
Welspun Gujarat raises part finance for wide plate mill
Welspun-Gujarat Stahl Rohren Ltd. announced on Wednesday that it has successfully raised US$75mn through issue of Foreign Currency Convertible Bonds (FCCBs). These zero coupon FCCBs have a tenor of five years and are convertible into equity shares at a price of Rs162.64, which represents a premium of 74.24% to the BSE closing price of Rs93.35 as on Nov. 28.
The funds raised from this issue would be utilized to part finance 1.2million tons wide width plate mill, which is likely to be fully operational by March 2007, Welspun Gujarat said.
Besides enhancing the bottom line, the completion of the project would substantially improve the capability of the company in executing shorter delivery projects and make it self sufficient on its critical requirement of raw materials, Welspun Gujarat said.
Mundra Port establishes new single-day coal discharge record
The Adani Groups Mundra Port has established a new single-day handling record by discharging more than 50,000 tonnes of coal in 24 hours between November 25 and 26, when two Panamax ships MV Oak Star and MV Eternal Star berthed simultaneously.
The record achievement was made possible by the Ports state-of-the-art material handling systems like Gottwald cranes and high-tech conveyor belts.
Capt Sandeep Mehta, President of Mundra Port, attributed this spectacular performance to the Ports state-of-the-art infrastructure in the form of advanced mechanized handling systems that are managed by a highly motivated team. As he put it, "Mechanization and manpower are the two buzzwords at Mundra Port".
43rd Metallurgist Day to be celebrated in Rourkela
The 43rd Metallurgist Day celebrations and international conference on The State of Art In Blast Furnace Practice and The Status of Iron Making Technologies are being jointly organized by Indian Institute of Metals, Rourkela Chapter and Rourkela Steel Plant (RSP) on 1 and 2 December.
Dr Mano Ranjan, secretary, ministry of steel, Government of India, will be the chief guest and inaugurate the conference. A number of luminaries from the Indian steel industry like Dr T Mukherjee, deputy MD of TISCO, Dr SK Bhattacharya MD of DSP, Dr Sanak Mishra MD of RSP, Mr U Singh MD of BSL, Mr RP Singh MD of BSP, MR KK Khanna Director Technical & Commercial of SAIL and Mr N Roy MD IISCO, will be taking part in the two day event.
The conference will also bring together nearly 200 delegates belonging to the steel industries, government and other organizations connected with the steel industry. Over 20 participants will come from different corners of the globe.
Mr Vandrevala is new Motorola India head
Former Tata Teleservices chairman Firdose Vandrevala today joined telecom multinational Motorola as head of Indian operations. Senior Motorola officials said, Motorola places high importance on the India market as part of its global strategy. Mr Vandrevalas abilities, coupled with Motorolas technological leadership, are expected to help the company realize its growth objectives for India, which include next-generation technologies.
Mr Vandrevala was associated with the Tata group for over 33 years at different capacities in steel, power and telecom.
L&T bags Rs 1,000cr ONGC order
Larsen & Toubro L&T has secured a Rs 1,000 crore turnkey project order from Oil & Natural Gas Corporation for four well platforms and inter-connecting pipelines to be installed in Mumbai High North and Bassein fields. According to a release issued by L&T, three platforms, with six wells each, will be of the latest tripod design to be engineered by Valdel. "Valdel is a joint venture company of L&T and US-based Worlex Parsons," the release added.
The fourth platform having nine wells will be designed to handle corrosive sour gas from the Bassein field. "It will be constructed of special materials like duplex stainless steel and incolloy cladded material for the topsides and pipeline," the release added.
Indian bicycle industry hit by rising steel prices
Bicycle units in Ludhiana are reported to be facing declining production and exports due to fluctuations in steel prices and the duty drawback scheme. Exports have declined from Rs 850 crore in 2002 to Rs 750 crore in 2004. Analysts feel that the industry has been declining at a rate of 15 per cent since the past three years. India is the second largest bicycle producer in the world, next only to China. 90% of the nations bicycle production takes place in Ludhiana.
United Cycle & Parts Manufacturers Association General Secretary Mr Varinder Kapoor said, 25% of the units have closed shop, and 25% have defaulted in loan repayment. Steel prices have doubled in the past three years. Our bank borrowing limits have not been enhanced. Hero Cycles used to manufacture 18,000 cycles per day; and now they are producing 6,000 cycles only. Similarly A-One Cycles has reduced production from 7,000 to 4,000 cycles per day. Now we do not have even the duty drawback of 16-17 %. Under this situation exports are bound to decline further.
Because of ever-increasing steel prices, more than 40% of cycle component manufacturers in the state have shifted to the trading of Chinese-made cycle parts because they are cheaper than the indigenously made parts, said Mr Gursharan Singh, president, Hand tool Manufacturers Association.
Tuticorin Port invites bids for framing Business Plan
The Tuticorin Port Trust has issued a tender the preparation of a Business Plan. The business plan will define a long-term vision for the port, establish goals to be achieved over the next seven years to satisfy this vision, identify strategy to be followed to reach these goals, recommend a detailed plan of action to implement strategy and identify sources of financing for all proposed investment.
TopLondons ship broking major SSY may come to India
It is reported that London-based ship broking major, Simpson, Spence and Young Ltd SSY, a 125-year old group operating in more than 10 countries, is planning to set shop in India
Mr John A. Welham, Chairman of SSY, said the company visualized bright prospects in India. It was conferring with exporters, importers, shipping companies and shipyards in this respect, he added.
Job cuts at Mittal's Weirton mill could be permanent
It is reported in media that Mittal Steel US officials plan on not re-opening Weirton's blast furnace facility. Company officials announced another "restructuring" of the company later this week, although details of that plan have not been completely released.
Independent Steelworkers Union President Mr Mark Glyptis told press that the announcement is "both good and bad." But, he says, it will "shore up" the future of the former Weirton Steel steelmaker.
Mittal Steel had idled the furnace in July and laid off some 730 workers. At the time, that was about one-third of the mill's work force. Now it appears those layoffs will be permanent. Weirton's steel production costs are known to be among the highest in the Mittal family, despite the union's attempt to cut them. Mittal Steel says blast furnaces at its other operations can meet demand through next year.
China 2006 steel surplus seen at 116.51 million tons SCDRC reports
China will produce a surplus of steel next year equivalent to Japan's entire annual output as demand from the once red-hot property sector cools, a top government think tank said on Wednesday. The world's largest steel producer and consumer could chalk up excess output of 116.5 million tonnes in 2006, or about a third of forecast output of crude steel this year, the State Council Development Research Centre predicted.
"The overcapacity problem in China's steel industry cannot be solved next year, and that will further depress steel prices," the think tank, backed by the country's cabinet, said in a report in the official China Securities Journal.
Global markets have long feared that China would emerge as a net steel exporter, possibly triggering mill closures elsewhere with a flood of low-priced products. The country became a net exporter in the first 10 months of this year, selling 23.29 million tonnes of steel and steel products abroad, compared with imports of 23.06 million tonnes, customs figures showed.
The cabinet's think tank said Chinese steel supply, including imports, would soar 48% to 453.4 million tonnes in 2006, versus expected demand of 336.9 million up 10.12%, China's Development Research Center under the State Council said. But exports in 2006 would slip 5.8 percent to 19.46 million tonnes amid sluggish world prices and potential dumping charges against Chinese mills. Imports are expected to climb 15.3 percent to 32.69 million tonnes.
China's domestic crude steel capacity would climb to 360 million tonnes next year from 340 million tonnes in 2005, despite delays in the start-up of several new plants, the report said.
'The overall profitability of the steel industry will slump as prices of steel products slip, with lower value-added products likely to be hit most seriously,' the report said.
Demand growth would also slow, particularly from the construction and machinery sectors.
The centre said output of iron ore in China, the world's top importer of the raw material, would rise 15.5 percent to 448.7 million tonnes next year, thus easing supply concerns. Coke output would grow 3.3 percent to 235 million tonnes in 2006. "Demand growth for iron ore will slow and imports will not increase sharply," the think tank said. "There should be no problems regarding iron ore supply." Official data showed Chinese iron ore imports jumped 32 percent to 221.23 million tonnes in the first 10 months of 2005, while output grew 31 percent to 318.96 million tonnes.
BlueScope Steel starts Vietnam production ahead of schedule
BlueScope Steel announced it had commenced first production from its new metallic coating line in Vietnam ahead of schedule. Four years of development and construction work by the BlueScope Steel Vietnam project team culminated in the plant achieving 'metal on strip' yesterday afternoon
The line is part of a state-of-the-art metallic coating and painting facility being built in Ba Ria-Vung Tau province, south of Ho Chi Minh City at a cost of A$160 million. Production from the line will be ramped up in a series of 'campaigns' over the coming weeks as quality and yields are improved. Other lines at the plant including the painting line will also be brought on stream progressively. The facility will have an annual production capacity of 125,000 tonnes of metallic coated and 50,000 tonnes of painted flat steel products.
BlueScope Steel CEO and Managing Director, Mr Kirby Adams, said: " This state-of-the-art facility is also the first coating and painting facility of its kind in Vietnam. This is a wonderful achievement from the employees of BlueScope Steel Vietnam, not only have they delivered ahead of time and on budget, but they have done so working safely for 3.7 million hours without a lost time injury."
President BlueScope Steel Vietnam, Mr Peter Wilson, said: "As we ramp up the project with improved quality and yields, our focus will shift to delighting our customers with colorful, quality products in this growing market."
BlueScope Steel is an international flat steel solutions company, with a manufacturing and marketing footprint spanning Australia, New Zealand, Asia and North America. The Company is the global leader in the provision of high quality metallic coated and painted steel products for the building and construction sector, and also supplies customers in the general manufacturing, automotive and packaging sectors.
BlueScope Steel's strengths include its unrivalled network of manufacturing facilities in Asia, proprietary coating and painting technologies and strong brands, including COLORBOND steel, ZINCALUME steel, the LYSAGHT range of steel building products and the BUTLER brand of pre-engineered steel buildings.
BlueScope Steel operates a 5.1 million tonnes per annum integrated steelworks at Port Kembla, Australia, a 650,000 tonnes per annum integrated steelworks in New Zealand, and has a 50 per cent interest in a steel mini-mill in Delta, Ohio. Steel rolling, coating and painting plants are located in Australia, New Zealand, Thailand, Malaysia and Indonesia, and under construction in China and Vietnam. BlueScope Steel has a network of more than 50 rollforming facilities in 13 countries that is unmatched by any other steel company, and is the market leader in steel pre-engineered buildings in China and North America.
Corus Q3 net income Falls 73%
Corus Group Plc announced that their Q3 profit declined by 73% as costs increased and steel prices declined. Net income fell to 50 million pounds ($86 million) from 188 million pounds. Sales rose to 2.38 billion pounds from 2.36 billion, it said.
The downward pressure on selling prices that began during the first half of 2005 accelerated during the third quarter,'' Corus said in the statement. The full impact of the significant increases in raw material costs was also experienced in the third quarter.''
Sea freight costs to play important role in iron ore negotiations
BHP, said that the cost of sea freight will be the key factor during the iron ore price negotiations. The three leading iron ore miners, CVRD, Rio Tinto and BHP will negotiate the price of iron ore for next year. Chinese steel mills will lead the negotiations from the side of mills.
The new contracts negotiation with mills for next year will be more difficulty due to weak demand in the global steel market. According to Chip Goodyear, BHP CEO, the cost of sea freight from Australia to China is much lower than that of Brazil to China. Obviously, the sea freight of iron ore plays an important role during the price negotiation.
Corus raises European strip steel prices by 5% for Q1 of 2006
Corus Group PLC has confirmed that it will raise its prices in Europe for strip steel products by around 5% in the first quarter of 2006.
'It has taken some time for the high stock levels in strip products across Europe to work their way through the system, and Corus has seen an increased activity in the EU steel market and its order-books. A more optimistic tone coming out of the macroeconomic figures for 2006 supports that the price increase is in line with market conditions,' the Anglo Dutch steelmaker said in a statement.
The group plans to implement a 5.0 pct increase for flat steel products in Europe early next year. The group recently put through a similar 5% increase for strip steel in the UK.
Mittal Steel US to stop steelmaking at Weirton
Mittal Steel USA has announced that it will no longer manufacture steel at its Weirton, West Virginia plant, which will be restructured around tin plate production. Mittal Steel said it will continue to supply Weirton's finishing facilities with lower-cost material from its other plants, enabling it to strengthen its position, particularly in tin plate.
The Weirton facilities, which employ 800 workers, have been idled since June and Mittal will not restart the primary iron and steel operations there
"The structural disadvantages of Weirton for these iron and steel processes entail costs that are too high to support competitive downstream facilities," said Mr Louis Schorsch, CEO of Mittal Steel USA. "Mittal Steel is the world's largest tin plate manufacturer, and we make ourselves even more competitive in that important market by reconfiguring this plant around its tin plate facilities," he said.
US steel imports rise by 24% in October
Total steel imports into US during October rose by 24%, over September to 2.7 million tonnes, mainly in low value added products and semi finished steel reflects increased availability concerns of US producers, particularly in flat products. The bulk of the increase in imports came in the lower end of the value added spectrum with semi finished steel up by 69%, hot rolled sheet up by 29% and reinforcing bar up by 77%)
"The jump in semi-finished steel tells us that domestic steelmakers are taking advantage of lower-priced, semi-finished steel rather than turning back on their own steel melting capacity, an economically sound choice, in our view," according to Michelle Applebaum Research. "We anticipate that imports will rise further into the fourth quarter as domestic availability is fully tapped out. We were surprised to see import levels for structural and plate steel remain unchanged in October, as these two product lines are the tightest in the US market right now. We expect to see greater imports of these products in coming months."
It said that while it expected some growth in imports into the US market, "we do not believe that at current relative pricing levels imports for most products are available at $50-75/st below domestic prices the discount is sufficient to cause erosion to US prices.
Siemens VAI gets slab caster replacement order from Cosipa
The Siemens Industrial Solutions and Services Group (I&S) have received an order from the Brazilian flat-steel producer Companhia Siderrgica Paulista (Cosipa) to replace their existing Slab Caster No. 3 located in Cubat. The project has a value of EUR 89 million, and will be implemented by the Brazilian Voest Alpine Indstria Ltda (VAI-MS). Start-up of the new caster is scheduled for December 2007.
The project includes the dismantling of the existing caster, and the engineering, supply and turnkey installation of a new single-strand slab caster with a nominal casting capacity of 1.2 million tons of high-quality slabs per year.
Cosipa's existing Slab Caster No. 3 was commissioned in 1989. With a view to improve caster productivity, operational flexibility and product quality, the company decided to replace this caster with a new slab caster capable of producing a total of 1.2 million tons of high-quality carbon-steel slabs per year.
Cosipa, located on the Atlantic coast in the State of S Paulo, Brazil, is a company of the Usiminas Group, based in Belo Horizonte, State of Minas Gerais, Brazil.
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.
Mitsubishi to invest C$5.5 million in Baffinland Iron mines
Baffinland Iron Mines Corporation has announced the signing of a MOU with Mitsubishi Corporation for sale of 7.2% of shares and in return Mitsubishi shall be granted certain Asian marketing rights for a portion of future Baffinland iron ore production.
"We are very pleased to welcome Mitsubishi, one of the largest diversified trading and investment companies in the world, as our first strategic investor in Baffinland" stated Mr Gordon McCreary, President and CEO of Baffinland. He added that, "We believe that Baffinland's Mary River iron ore deposits are truly world class and it is appropriate to have a world class investor such as Mitsubishi to participate in the advancement of this project. With the assistance of Mitsubishi Baffinland plans on consistently developing sales opportunities in Asia with a portion of expected production to establish long term relationships for future growth opportunities. I commend the iron ore specialists within Mitsubishi for their early recognition of the importance of our Mary River Project and we look forward to a long, growing and mutually beneficial relationship with Mitsubishi."
During the past two years Baffinland has spent over Cdn$25 million on the advancement of its 100%-owned Mary River Project, a high grade, potential direct shipping iron ore operation located in Nunavut Territory, Canada. Recently
Corus Group rules out Dofasco counter-bid
Corus Group PLC, the Anglo-Dutch steelmaker, today ruled out any counter-offer for Canada's Dofasco Inc, but said it is still interested in finding a partner to help it take advantage of opportunities that are opening up in Eastern Europe. 'We're not involved in the Dofasco process,' Corus Group's CEO Mr Philippe Varin told during an interview
ThyssenKrupp appears to be paying a very high price for Dofasco, Mr Varin told. However, ThyssenKrupp clearly believes it can extract value and the deal is probably good for the sector in terms of the ongoing consolidation of the global steel industry, he added.
Apart from Eastern Europe, Corus is also believed to be interested in the BRIC states and other low cost countries. We'll continue to pursue selective growth opportunities, Mr Varin
CVRD could support Usiminas expansion plans
It is reported that CVRD could support Brazilian steelmaker Usiminas' plans to expand operations. CVRD CEO Roger Agnelli said "If Usiminas decides to invest to increase production, CVRD would like to support and participate in the project. The steelmaking segment in Brazil has to keep on growing, and we have been in talks with Usiminas regarding this expansion."
When asked to clarify how CVRD would support the plans, a company spokesperson said it would do so as a Usiminas shareholder. CVRD is one of Usiminas' majority shareholders and holds 23% voting capital on the Brazilian steelmaker.
Usiminas has plans to invest around $400mn within 3 to 4 years for some projects. Investments include subsidiary Cosipa's $100mn contract with Austrian steel equipment supplier Voest-Alpine to remodel a machine responsible for plate production. Another US$200mn would go to build a new coke plant at its Ipatinga steel complex in Minas Gerais state.
Inland rail transportation key factor in Russian coal industry
Russian coal miners, who are trying to increase production and exports are facing roadblocks due to the states unbalanced tariff policy. The profitability of coal mining companies directly depends on railroad tariffs and further increases of transportation tariffs will lower the competitiveness of Russian coal outside of the country.
Russia today occupies fifth place in the world in coal mining after China, US, India and Australia and the existing capacities allow Russian miners to drastically increase volume of production; however the low demand from the energy sector, as natural gas dominates Russian energy, does not allow them to do so. In this situation, many coal companies are placing their bets on export developments.
Growth of coal production and an increase of state export volumes depend of two factors transportation infrastructure and state tariff policy. The largest coal regions of the country are located far away from seaports and coal producers have to use railroad services. Today, about 50 million tons of coal a year is exported through the railroads.
According existing cargo classification, the FTS considers coal as a cargo of first tariff class, which translates into the application of lower coefficients depending of the distance of the shipment. However, despite that, railroads tariffs eat up a significant portion of coal companies profits. The transportation portion of in the price of coking coal during its delivery through the seaports is about 15%, through the land border about 18 %; in the price of energy coal these numbers correlate to 35% and 36%
Coal producers see several ways to perfect the tariff policy. First is constant cooperation of the companies inside of the coal industry and RR within the frame of a joint working group, which would be able to realistically predict the consequences of tariff policy. The second way is to connect the transportation component with the final price of the coal. And, finally, the third way is to sign long-term agreements between the miners and transportation companies. These documents will reflect the agreed volumes of cargo and fixed tariff.
By 2008 the shipments of Russian coal on the world market in favorable conditions could grow up to 90 million tons per year.
BlueScopes Western Port hot strip mill returns to full operations
BlueScope Steel announced that its Western Port Hot Strip Mill has returned to full operation following a 12 week repair program as a result of a fire that occurred in August in its electrical control room. The Hot Strip Mill provides feedstock for Western Port's cold rolling, metallic coating and painting operations.
The total cost of repair, including the impact on product mix and margins, was approximately A$50 million, of which $15 million will be accounted for as capital expenditure.
Corus invests Euros 223 million in Ijmuiden
Anglo-Dutch steel and aluminium company Corus Group Plc said on Wednesday it had invested 223 million euros ($263.4 million) at Ijmuiden to expand its capabilities for the automotive and construction markets.
Corus said in a statement the investment in downstream processes will include a new galvanizing line and a new cold mill. The facilities are expected to be operational in 2008.
AIIS predicts increase in steel imports
The higher the price of steel in US compared to the rest of the world, the more foreign steel will flow into this country, as per the members of the American Institute for International Steel said Tuesday.
"Our outlook is guarded but leading toward the positive side barring any disruptions from trade cases," said AIIS Chairman Mr Wilfried von Bulow at a press conference to discuss his industry's 2006 outlook. "We expect steel imports to be higher and steel exports to drop from 2005 levels."
A higher volume of imports is an advantage to members of the AIIS, which represents the interests of steel importers, exporters, producers, buyers of steel and related businesses, such as customs brokers, transportation companies, logistics firms and maritime organizations.
The association opposes U.S. trade laws and is promoting the repeal of the Byrd Amendment and other anti-trade legislation that the association claims create an uncompetitive market environment for steel importers and U.S. steel manufacturers and consumers. The association is working with the Washington-based Consuming Industries Trade Action Coalition and others who want Congress to repeal the Byrd amendment.
Steel Dynamics Expanding in Hendricks County
Steel Dynamics Incorporated is expanding its central Indiana mill by installing finishing operations for its steel bars. Construction of the $18 million expansion is set to begin in the fall, with operations possibly beginning in March. Once built, the new Hendricks County facility will be able to process and finish 160,000 tons of bar steel.
Steel bars are used in a variety of industrial and automotive applications. The finishing work is typically done by customer. Steel Dynamics opted to do the work in-house to respond to customer demands. Fort Wayne-based Steel Dynamics opened its Pittsboro mill in 2004.
Dry bulk freight rates to a 2-month low
It is reported that as ships available for hire outnumbered cargoes in November, the cost of shipping commodities such as iron ore and coal fell touching its lowest in more than two months. The decline in rates "was somewhat unexpected during what is traditionally a very busy period", Paris-based shipbrokers Barry Rogliano Salles said in a weekly report. Whether the market will rise on an increase in December shipments "is still unclear, but it seems less likely as time goes on", the broker said.
The Baltic Dry Index, which is a measure of freight rates for different-sized vessels carrying dry bulk cargo on international routes, dropped by 32 points, or by 1.1%, to 2,837 on November 22, the lowest since September 14, according to Londons Baltic Exchange. The index has declined 8% this month as falling demand for space on dry bulk vessels for both single voyages and long-term contracts prompted operators to reduce freight rates. The Baltic Panamax Index fell 1.1 per cent to 2,260 points, the Baltic Exchange added.
Freight rates to China for Capesize vessels, which are the largest dry bulk carriers on the benchmark route from Australia, the worlds biggest iron ore and coal exporter, fell by 1.2% or 14 cents, to $ 12.31 a tonnes, according to the Baltic Exchange.
Capesize vessels carry as much as 170,000 tonnes of cargo. On the Brazil-to-China route, costs declined by 1.2% or 33 cents, to $ 29.92 a tonne.
The rates for Capesizes transporting coal to the Netherlands from South Africas Richards Bay terminal, the worlds second biggest coal exporting port, fell by six cents to $ 14.47 a tonne, the Baltic Exchange explained.
Cazaly faces reality over iron ore fight
Junior iron ore developer Cazaly Resources, which is battling mining giant Rio Tinto for the ownership of a Western Australian iron ore project, says life will go on for the company if it loses the claim. Cazaly pegged the Shovelanna iron ore project, 25 kilometers east of Mount Newman in the Pilbara, after Rio Tinto's license expired, much to the latter's chagrin.
The pair are now awaiting a decision by WA state development minister Mr Alan Carpenter to determine who has rights to the project. Mr Carpenter, who has not indicated when a decision will be made, said it could go either way and urged investors to be cautious. "It does concern me slightly that there is a lot of speculation and a lot of gambling on the results of this process and I caution people to be a little circumspect," he said.
Cazaly MD Mr Clive Jones said he did not know when the government would make its decision. "We have no idea on the result that is going to be," he told reporters after the company's annual general meeting. "Our view is we should state our case and show commitment and let it run its natural course. "But if its claim is rejected, Mr Jones said the company, which is the second largest land owner around Kalgoorlie, has other gold projects to work on.
BHP Billiton has agreed to purchase the ore from the project with first production expected within two to three years.
WHI Capital acquires Carpenter Special Products Corporation
WHI Capital Partners, a Chicago-based private equity firm has announced its acquisition of Carpenter Special Products Corporation, a leading integrated manufacturer of precision engineered metal components and assemblies. As a stand-alone company, the company will be renamed Veridiam, Inc. and will continue to focus on its core nuclear power generation, aerospace and medical device businesses.
For more than five decades, Carpenter Special Products Corporation has developed its unique metals engineering and manufacturing capabilities by leveraging a highly skilled workforce to create product solutions spanning a wide range of industries and applications. Some of its current products include tubular component assemblies, cold rolled and cold drawn alloy products, nuclear reactor tubing and fuel channel assemblies.
In connection with the sale, an agreement was executed whereby Veridiam will continue its strong supply relationship with its former parent, Carpenter Technology Corporation, to ensure access to certain of Carpenter Technology's proprietary alloys. In addition, Veridiam and Carpenter Technology have formed a joint development effort in order to continue leveraging each company's strengths and advantages in the marketplace.
Ukraine earned $43 million on exchange rate in Kryvorizhstal sale
According to the UkrSocBank analysts, at the sale of Kryvorizhstal Ukraine earned additional $43 million on exchange rate difference as per a report from Ukrainian Financials.
The main intrigue of the currency market last week was conversion of the Mittal Steel funds for 93.02% of the JSC Kryvorizhstal shares in equivalent of 24.2 billion hryvnias. Apprehensions existed of collapse of the USD/UAH exchange rate in the case of uncoordinated deeds of sellers and the NBU. However, everything went smooth, the National Bank purchased foreign currency at 5.00 UAH/USD additionally earning, on our estimation, nearly $43 million on the difference with the official rate reads the Ukrainian financial markets weekly review prepared by the UkrSocBank Financial Instruments Issuing Department.
POSCO builds SS processing facility in Guangdong province
A stainless steel processing facility built by POSCO was recently put into production at Chencun Town in Shunde City, located in south China's Guangdong Province. The processing base involving an investment of US$30 million mainly produces cold-rolled stainless sheets and has four production lines.
POSCO has invested $2.4 billion in building 24 subsidiary companies in China. Eight years ago, POSCO built two steel processing bases in Shunde, Guangdong Shunde POSCO Steel Plate Co. Ltd and Shunde Xingpu Rolled Steel Processing Co. Ltd
Metso Texas announces shredder sales
Metso Texas Shredder recently announced that it has sold several shredder plants to scrap metal companies in the United States.
The company announced the sale of two additional shredder plants to Alter Scrap Processing for their expanding metal recycling operations. The sale brings to a total of five Alter plants having a Metso Texas Shredder system in place.
Metso Texas Shredder also landed an order to supply a new to Schnitzer Steel in Portland, Ore.
SSINA to table survey report on metals in defense
The Specialty Steel Industry of North America (SSINA) will host a press conference to present an industry survey and report that identify and establish the critical interdependence between a vibrant domestic specialty metals industry and the US military and national defense. The report also proposes specific, dramatic and comprehensive actions to keep American specialty metals and other manufacturers investing in the US on December 6, 2005 at Washington, DC, with Dr Jack W. Shilling Chairman of SSINA and Executive VP Corporate Development % CTO of Allegheny Technologies would be the speakers
SSINA, a Washington, DC-based trade association, represents virtually all North American stainless steel and nickel-based alloys producers, including super alloys. Some member companies also produce other specialty metals, such as titanium and titanium alloys, zirconium, and niobium alloys.
SSINAs members list includes AK Steel, Allegheny Ludlum, Allvac, Carpenter Technology, Charter Specialty Steel, Crucible Specialty Metals, Electralloy, Haynes International Inc, ThyssenKrupp Mexinox SA de CV, North American Stainless, Outokumpu Stainless; Precision Rolled Products, Special Metals Corporation, Huntington, Techalloy Central Wire Group, Timken Latrobe Steel, Universal Stainless, Alloy Products, and Valbruna Slater Stainless Inc
Sulina channel cleared of shipwreck
The last piece of the wreck of Ukrainian ship Rostok, which sank in the Danube 14 years ago, was brought out on Tuesday afternoon, restoring normal navigation on the river's Sulina arm. Operations to bring out the wreck started in November last year and used a special floating crane from the Netherlands.
The operations were run by a Romanian-American- Dutch consortium. An American and a British diver lost their lives during operations.
Rostok was loaded with 5,000 tons of steel when it wrecked on the Sulina Canal in September 1991.
Worthington Buys Out Dietrich Venture
Worthington Industries Inc. on Wednesday said its Dietrich Metal Framing unit acquired the remaining 40% stake in its Canadian metal framing joint venture from partner Encore Coils. Financial details were not disclosed.
The venture was formed in November last year as a way for Dietrich to supply its light gauge steel framing products to Canada's construction market, Worthington said. Since then, the venture has opened three manufacturing facilities in the country.
"Making the operations a wholly owned subsidiary is a natural progression to complement our customer strategy for North America," said Dietrich President Mr Ed Ponko.
Dietrich Metal Framing is the largest manufacturer of steel framing products in the United States and Worthington Industries is one of the largest steel processors in the United States.
Encore Coils offers slitting, blanking, decoiling and inventory management services from facilities in Edmonton and Calgary, Alberta; Kelowna and Surrey, British Columbia; Saskatoon, Saskatchewan; and Winnipeg, Manitoba. Encore was formed after the acquisition of the North American specialty metals and carbon flat-rolled steel distribution businesses of Corus in March 2004. The specialty metals business was renamed Encore Metals and the flat-rolled steel business became Encore Coils.
Apollo Management completes acquisition of Metals USA
Metals USA Inc announced today the completion of the acquisition of Metals USA Inc by affiliates of Apollo Management LP, a private investment management firm. Metals USA had announced on May 18, 2005 a definitive agreement with Apollo regarding the acquisition of the company.
Mr C Lourenco Goncalves, President and CEO of Metals USA commented "We are extremely pleased to have delivered such great value to our existing stockholders while at the same time attracting a sophisticated investor such as Apollo Management. This transaction is a clear endorsement of our business model and industry leadership. Further, it demonstrates that metal service center companies are good investments for smart investors."
Metals USA provides a wide range of products and services in the heavy carbon steel, flat-rolled steel, specialty metals, and building products markets.
Apollo Management, L.P., is among the most active and successful private investment firms in the U.S. Since its inception in 1990, Apollo has managed the investment of more than $12 billion in a wide variety of industries, both domestically and internationally.
Neenah Foundry ends plan to sell firm
Neenah Foundry Co. said late Tuesday that its board of directors has decided to end plans to sell the company, the firm said when announcing results for fiscal 2005. The company said that it will instead focus on its business plan and explore other alternatives to reduce costs and expand capacity in selected markets.
The Neenah-based provider of heavy municipal and industrial iron castings and steel forgings had hired investment bank Citigroup Global Markets Inc. in late July to explore sale or merger options for the company or a significant portion of its assets or common stock.
Ukrrudprom is liquidated by the government
The Cabinet of Ukraine has decided to liquidate Ukrrudprom as per the Head of the State Property Fund Valentyna Semenyuk.
Ukrrudprom State Stock Company was created in 1998 by Industrial Ministry of Ukraine and the State Property Fund. It consisted of ten mining enterprises. The State Property Fund owns 100% of its stocks. Ukrrudprom consisted of only two employees who had not been paid salary for a long time. In the summer of 2005 the Cabinet of Ukraine discussed the question of sale of ten enterprises belonged to Ukrrudprom.
Arcelor signs a partnership with Federal University of Minas Gerais
Mr Guy Doll CEO of Arcelor, signed a partnership agreement with the Federal University of Minas Gerais, in Brazil. This agreement is aimed at contributing to the education of talented young university students. Various actions are foreseen in the framework of the agreement, including training internships in Arcelor's research centers, the execution of R&D projects, and a number of common initiatives focused on training and technical exchanges.
"Education is a core value of our commitment to innovation and sustainable development. This partnership enables us to reinforce the fruitful exchanges between the academic world of university and our company, and to offer young talents an opportunity to develop their careers, both internationally and in Brazil", declared Mr Guy Dollduring the signing ceremony.
This agreement follows the ones signed by Guy Dollwith the Escola Politnica de S Paulo (USP) in April 2004 and with the Catholic University of Rio de Janeiro (PUC RJ) at the beginning of 2005. These agreements complement the local agreements made in the past between the Brazilian companies of the Arcelor Group and the universities in their geographical area. Their aim is to establish the long-term nature of the Group's commitment to Brazil and its will to fully participate in the promotion of the Brazilian universities worldwide.
The Federal University of Minas Gerais, created in the 19th century, in one of the benchmark university institutions in Brazil. Its Schools, Faculties and Institutes receive more than 35,000 students and employ around 2,400 teachers and 4,400 employees and technicians.
Rio Tinto makes $170m profit on Lihir stake sale
Rio Tinto has sold its 14.5% stake in Papua New Guinea miner Lihir Gold at a 9% discount for A$399-million, more than doubling its investment in 10 years. The sale to Citigroup comes as gold sits near 18 year highs around $500 an ounce and amid consolidation in the sector.
Fund managers said Citigroup, which declined to comment, is selling the Lihir shares on to institutions, looking for offers between A$2.15 and A$2.20 a share.
Slovakia backs Ukraines plan to sell Kryviy Rih ore mining mill
Slovakia, a shareholder in Ukraines Kryviy Rih Mining and Dressing Mill of Oxidized Ores, backed a plan to sell the company, Ukrainian Industrial Policy Minister Mr Volodymyr Shandra said.
"We sell the Ukrainian stake, and only after the tender winners come to an understanding with Slovakia and Romania, will they get the right of ownership," Mr Shandra told reporters.
