December, 09 2005
ITC continues trade barriers on SS flanges from India & Taiwan
The US International Trade Commission (ITC) has determined that revoking the existing antidumping duty orders on forged stainless steel flanges from India and Taiwan would be likely to lead to continuation or recurrence of material injury within a reasonably foreseeable time. As a result of the Commission's affirmative determinations and the Department of Commerce's recent affirmative findings, the existing orders on imports of forged stainless steel flanges from India and Taiwan will remain in place.
Today's action comes under the five-year (sunset) review process required by the Uruguay Round Agreements Act.
TATA Steel closing down iron ore export operations at Haldia
It is reported that TATA Steel has not made a single shipment of iron ore export in the current fiscal, while only one shipment of 11,000 tonnes was undertaken through the dock in 2004-05.
It is also learnt that TATA Steel has started returning to the dock authorities the plots of lands it had taken on lease for storing iron ore prior to shipments. In all, three plots, two within the dock and one outside were taken on lease from the dock authorities. One of them has already been returned.
Seminar on steel making at VSP
Mr PK Bishnoi RINLs Director Finance inaugurated the two day 39th meeting of the Steel Making Operating Committee SMOC at Ukkunagaram. He stated that VSP employees were known for their technological innovations and achievements in steel making and tremendous improvements were registered in all aspects of the steel making process in the plant during the last several years. Mr. Bishnoi expressed confidence that VSP would achieve further excellence on this front.
Mr KK Rao VSPs Director Operations said that India had come a long way in steel making, and its steel mills could easily achieve the 110 million tonnes target, envisaged in the National Steel Policy, by 2020.
Mr K Ayyappa Naidu VSPs Director Personnel felt that those engaged in steel making and in research and development should come together to scale greater heights in productivity.
Mr HS Chattwal VSPs Director Commercial said that there was every need to develop new grades of steel to fulfill market requirements, in the light of the tremendous pressure on steel prices.
SMOC secretary Mr K Keshari presented a report and praised VSP for its efforts at continuous improvement in steel making. The SMOC meeting has billed a number of technical sessions involving delegates from Steel Authority of India Limited, Tata Iron and Steel Company, Jindal Group and RDCIS Ranchi.
Indias GHCL takes over Bega Upsom in Romania
Indian company GHCL took over 65% of the equity of Romanian Bega Upsom Ocna Mures, based in Alba County for $19.5 million. According to a news release, GHCL will acquire the remaining 35% of the stock through a public bid, as required under Romanian legislation.
Romgaz, the other major stockholder, controlling 30% of the shares, is also one of the main suppliers of Bega Upsom.
With this acquisition, the companys total soda production will increase by 300,000 tonnes a year, to 900,000 tonnes. By taking over the Romanian plant, GJCL eyes consolidation of its position in the European market and leadership of the worlds soda industry.
CIL monitoring progress of sanctioned coal projects
13 coal mining projects and 2 lignite mining projects have been sanctioned during the year 2004-05 and Coal India Limited CIL has identified 10 coal projects to be sanctioned during the current financial year 2005-06. Out of this, 2 have already been sanctioned. No new lignite project is proposed to be sanctioned during the current financial year.
The steps taken for the timely implementation of sanctioned projects are: reviewing & monitoring of projects on monthly basis or at shorter intervals at the area level and also at corporate level, mandatory review of the projects at company level when the expenditure of the project exceeds 50% of the sanctioned capital and review of projects costing Rs.100 crore & above by CIL Board. Besides Projects Review Committee of CIL Board, monitors the projects from time to time. Progress reports in respect of projects costing Rs.100 crore & above are also submitted to Department of Program Implementation regularly by CIL. Quarterly project review meeting is held in Ministry of Coal to review major projects costing Rs.100 crore & above.
EU average carbon steel forecast from MEPS
In the flat products category, the EU mills have announced price increases of between 20 and 30 per tonne for deliveries of strip mill products in the first quarter of 2006. We see little chance of these being implemented in full. The inventory depletion phase is at different stages, depending upon country. As a consequence, the price gains could vary from zero to 20 per tonne - averaging just over 10 per tonne across the five member states used for the calculation. Strong import competition will probably push commercial plate grade prices lower in the short term.
Continued production curbs should enable small price increases to be implemented into the third quarter of 2006 in the strip mill sector. The threat from low priced imports from Asia is real. So far, the weak Euro and declining prices have kept imports at levels which are not disruptive. This situation could change if Chinese supply is allowed to expand unchecked.
Market demand for long products is variable across the EU. Spanish consumption remains firm whilst activity in Northern Europe is much more subdued. Transaction price reductions are forecast for all product categories over the next few months from a combination of lower scrap values and weaker demand resulting from the oncoming winter conditions. The bottom of the price trend is still expected around February/March at figures near to the values indicated last month.
Price improvements are predicted through the spring and summer as demand improves with the weather. In all cases, the next peak value is predicted to be below the October result. We have factored into our numbers a degree of negative influence from global prices created by oversupply on the Asian continent.
No major equity deal with Chinese companies: BHP
BHP Billiton Ltd has no major equity deals planned with Chinese companies at the moment, Mr Clinton Dines, president of the China operations said. Mr Dines told reporters during a briefing in Beijing that reports of BHP purchasing an equity stake in China's Anyang Iron & Steel Co. were completely false.
Henan Province-based Anyang Iron, which has shares listed in Shanghai, said in a statement in September it was in talks with BHP about iron ore trade. It also said its parent company had no plans to divest its holdings in the listed unit. Anyang Iron said the statement was in response to media reports about a potential 30% stake purchase by BHP.
North American average carbon steel forecast from MEPS
In the flat products sector, we forecast current price levels in the strip mill sector holding up for a few months ahead. The inventory overhang has reduced considerably. Delivery lead times are extending and scrap costs should stay high in the short term. The significant threat from imports has not yet affected the market but it will develop in the New Year. Plate demand is reasonable but we believe that the threat from imports is imminent. Despite reasonable demand in the US and firm scrap costs, we expect prices to drift lower in the near future.
We maintain our belief that imports will pose a significant threat to prices during the first half of 2006. The current premium in North America is unsustainable compared to Asian values. We envisage price reductions up to mid year in all product categories.
Our twelve month forecast for long products is little changed from last month. The fundamentals of the market remain the same. Real demand in the US should improve. Canadian consumption is likely to remain sluggish, at least until the springtime. Inventories are not excessive in either country.
We expect prices to continue the downward path which started in November. Competition from Asia is likely to intensify. Far East markets are in oversupply. Traders are likely to dispose of the excess in North America, where prices are considerably higher than local figures. The cost of freight is no longer a barrier to Asian suppliers wishing to offload excess material.
US steel wire rod mills file unfair trade cases
Five domestic producers of carbon and alloy steel wire rod are seeking punitive duties for alleged dumping wire rod products from mills in China, Germany and Turkey. The domestic mills say they have been injured financially by sales of imports as much as 330% below the cost of production by the Chinese mills. The alleged dumping margins of the German mills range from 42% to 82% and from 31% to 78% from the Turkish steelmakers. These trade cases are similar to unfair sales petitions that resulted in the imposition of dumping duties on wire rod imports from Brazil, Canada, Indonesia, Mexico, Moldova, Trinidad and Tobago, and Ukraine in 2002.
The U.S. mills involved are Connecticut Steel, Gerdau Ameristeel, Keystone Consolidated Industries, Mittal Steel US and Rocky Mountain Steel Mills. They contend that unfair trade has allowed the foreign mills to increase their share of the U.S. wire rod market from 12% in 2002, to 23% in 2004, and reaching 28% of the domestic market in the first half of 2005.
"Imports from the China, Germany and Turkey have surged dramatically over the last three years, taking an ever-greater market share and inflicting severe financial distress on the domestic industry," said Mr Paul Rosenthal, lead trade counsel.
World stainless production seen rising 6% in 2006
The International Stainless Steel Forum expects the underlying demand for stainless steel products to rise by around 5% during 2006. That's why speakers at the ISSF latest conference in Seoul expect world stainless production to set a record next year. Mr Nirmal Mathur, president of the Indian Stainless Steel Development Association, forecasts that global stainless steel output will increase by 6% to 26.5 million metric tons.
Mr Mathur acknowledged at the ISSF conference that this year's sluggish production growth rate was due to high prices of such raw materials as nickel and ferrochrome as well as the need for several regions, including North America, to reduce excess stocks. Still, attendees at the International Iron and Steel Institute-sponsored conference were told that projected 2006 North American production will shown a rise of 3.1% to nearly 3 million metric tons.
It is reported that the speakers at the conference put stainless steel consumption in China in 2005 at 5.75 million metric tons. The forecast for Chinese stainless steel demand is 12 million metric tons by calendar 2014.
LME still considering steel futures
London Metal Exchange (LME) officials still are investigating the possibility of a price risk management tool for six steel products. The exchange is seeking data from reference price compilers to work with the LME to create and publish specific steel reference prices.
If, after a year, these prices have gained credibility within the steel industry and the LME membership, the nonferrous metals trading house may launch steel futures contracts.
It is reported that LME has decided to seek reference prices only HRC in NAFTA, Europe & the Far East and carbon steel billets in Turkey, NAFTA and the Far East.
Evraz Group to sell Vitkovice plates to Russian market
Russia's Evraz Group, new owner of Czech Vitkovice plans to sell steel plates produced by Vitkovice Steel in the Russian market as per Ms Irina Kibina Evraz Group VP
Vitkovice Steel produces 700,000 tonnes of steel plates per year, and sells 40 to 45% on the Czech and Slovak markets and the rest in the EU. Ms
Kibina said the company would try to raise its capacity and may change some of its buyers for Russian ones and that it is quite common for companies to change 10-15% of their clients every year.
Vitkovice Steel CEO Mr Zbynek Kvapik also admitted the possibility of a change in the client portfolio. "Russia is an opportunity that has emerged with the arrival of the new owner. While we appreciate long-term relations with clients, we also assess them through figures," Kvapik noted.
Mr Kibina said the new owner does not plan to change the management of Vitkovice Steel because it is satisfied with the company's results.
Evraz has also been negotiating a long-term contract for supplies of pig iron from Vysoke Pece Ostrava VPO, a subsidiary of Mittal Steel Ostrava. VPO has been supplying pig iron to Vitkovice Steel without a contract because of a long-standing dispute over prices between VPO and Vitkovice Steel, or more precisely its one-time owner state-owned Osinek.
Air Products starts up new Oxygen Plant in Northern China
Air Products, a globally diversified gases and chemicals company, has brought a new air separation plant on-stream in Tangshan, Hebei Province, China to supply gaseous oxygen via pipeline to Guo Feng Steel, a member of the Xinfeng Group and nearby Fufeng Steel.
Air Products has been supplying liquid oxygen to the Xinfeng Group since 1999. Xinfeng Group's decision in 2003 to expand its production capacity in Tangshan prompted Air Products' investment in the new plant. Tangshan is one of the largest steel production centers in China, with annual production exceeding 30 million tons. Air Products has been supplying Tangshan since 1997 and is one of the leading gas suppliers to the steel industry in Northern China.
Air Products was one of the first international industrial gas companies to enter China with a joint venture in 1987 and has established a solid infrastructure in Northern, Southern and Eastern China.
Nippon Steel, Sumitomo Metal, Kobe Steel increase cross holdings
Nippon Steel Corp Japan's largest steelmaker, Sumitomo Metal Industries Ltd and fourth-ranked Kobe Steel Ltd have increased the shares they hold in each other to deepen their alliance, the three companies said in a statement. The two companies and Kobe Steel forged a comprehensive partnership agreement in 2002 that involved cross-shareholdings. The three companies said they will examine ways to further deepen their partnerships to achieve better synergies.
Nippon Steel spent 31 billion yen to increase its stake in Sumitomo Metal to 5.01% from 2.55%, while Sumitomo Metal also injected 31 billion yen to boost its interest in Nippon Steel to 1.81% from 0.52%. Nippon Steel also spent 3 billion yen billion yen to increase its stake in Kobe Steel to 2.05% from 1.8% while Kobe Steel spent 3 billion yen to increase stake in Nippon Steel to 0.41% from 0.2% Between Kobe and Sumitomo Metal, Kobe's stake in Sumitomo increased to 1.71% from 1.52%, while Sumitomo's interest in Kobe jumped to 2.05% from 1.80%.
SMS Demag to acquire remaining stake in Millcraft venture
Dsseldorf based MS Demag AG will buy the remaining 50% stake in US Millcraft-SMS Industries Inc. The German and US companies formed a joint venture in 2002 and offered repair and maintenance services to steelmakers. The purchase price of the stake was not made public. Millcraft SMS was established with SMS Demags acquisition of Acutus Gladwin Industries.
Millcraft SMS specializes in the manufacture and repair services of continuous casters, rolling mills and material-handling equipment.
Full takeover for Mittal Steel SA on cards
Mittal Steel has denied concerns of a full takeover in Mittal Steel SA after the global steel maker lifted its stake in the company from 50% to 52% on last Friday by announcing purchase of 9 million shares in Mittal Steel SA for R460 million. This is the first time the steel giant has increased its stake in Mittal Steel SA since it gained control of the former ISCOR in June 2004, and could signal the start of a gradual move towards a buyout.
However, Mittal Steel said it was a once off purchase aimed at further consolidating its stake in Mittal Steel SA, and that "this does not in any way signify any interest from Mittal Steel to take its interest over 60% or make an offer to minorities". It has to make a mandatory offer to Mittal Steel SA minorities once its shareholding exceeds 60%.
Nippon to merge its 3 metal units to form Nippon Mining & Metal Co
Nippon Mining Metals Co announced that it will merge with Nikko Metal Mfg Co and Nikko Materials Co to become a new and single company. It will be renamed Nippon Mining & Metals Co.
It is hoped that by merging the three companies, they will be able to save costs and improve their competitiveness. This company will mainly aim at nonferrous metal resource development, metal refining, metal processing and the production of electronic parts materials.
New supply not enough to quench Nickel demand Inco
Strong demand for nickel will continue in 2006, and while additional supply is slated to hit the market at a later date, it will be limited for some time, said Mr Scott Hand, chairman and CEO of Inco Ltd, the world's No. 2 nickel producer during the First Annual Bear Stearns Commodities & Capital Goods Conference in New York on Thursday
Amid the reality of tight supplies, Mr Hand said the London Metal Exchange has adjusted to the situation as nickel prices trade at a three-month high of $14,400 a metric ton. Although that figure is down from highs seen earlier in the year of around $17,000 a metric ton, Mr Hand contends that a lack of new mining operations will keep prices buoyant.
"With an assumed 4% long-term nickel demand growth rate, the market needs a Goro-size project of 60,000 metric tons or more of nickel per year every year to meet increased demand at that rate," Mr Hand said.
Over the next two years, four projects are set to come on stream beginning with Inco's Voisey's Bay in the first quarter of 2006 with an expected annual capacity of 50,000 metric tons. Inco's Goro project with 60,000 metric ton expected capacity and BHPs Ravensthorpe with 45,000 metric tons expected capacity are set for production in the fourth quarter of 2007 while CVRD's Vermelho project, with an expected 46,000-metric-ton capacity, is set for the fourth quarter of 2008.
With supply from those projects being phased in between 2006 and 2011, Mr Hand said a lot more has to be done before supply catches up to demand.
Ukrainian mining and metals enterprises YTD production volumes
Ukrainian mining and metallurgical enterprises in January-November this year maintained the volume of rolling production at 29.237 million tons
It is reported that the cast iron production fell by 2%, to 27.994 million tons, steel output fell by 1% to 35.125 million tons, coke by 15%, to 17.278 million tons; supplies of scrap metal to metallurgical enterprises also fell by 8% to 5.826 million tons, ferroalloy output fell by 17% to 1.37 million tons and production of pipes rose by 12% to 2.115 million tons.
The agency also reported that mining enterprises increased production of iron-ore concentrate by 5% to 48.425 million tons. At the same time, the volume of raw iron-ore production rose by 3%, to 59.375 million tons, pellets by 8% to 16.099 million tons, iron ore agglomerate by 1% to 43.275 million tons.
According to the ministry source, the reason for the fell in production volumes is the worsening of conditions on the foreign steel produce markets in H2, which has made the enterprises cut back on their production.
IMF & Hillcrest litigating for Wright Prospecting in Pilbara
Australian Law firms IMF and Hillcrest Litigation Services are poised to go head to head in a battle over a $150 million-plus slice of one of WA's biggest family fortunes. Hillcrest has agreed to fund Mr Julian Wright in his claim for a one third share of Wright Prospecting, which houses the iron ore fortune left by his father Late Mr Peter, the business partner of the late mining magnate Mr Lang Hancock.
IMF is already backing Julian Wright's children Mr Timothy and Ms Natalie, in a separate action against Wright Prospecting, currently owned by Julian's siblings Mr Michael Wright and Ms Angela Bennett
At issue is a company stake worth more than $150 million plus a share in an annual royalty stream worth more than $35 million a year that flows to Wright Prospecting and Gina Rinehart's Hancock Prospecting from the Pilbara iron ore reserves identified by the Hancock-Wright prospecting team. Most of the royalties come from Rio Tinto's Hamersley Iron. Wright Prospecting is owned equally by Ms Bennett and Michael Wright, but Julian Wright and his brother and sister once had a one-third share each.
Japanese steelmaker unions to demand pay hike
The Japan Federation of Basic Industry Workers' Unions, which represents steelmakers, shipbuilders and nonferrous metal smelters, plans to seek a salary increase of 3,000 yen to 5,000 yen per worker during annual spring wage negotiations next year
The move will mark the first wage hike request in six years at steelmakers and four years at shipbuilders. Given strong earnings at those sectors, the JBU will ask management to raise base wages, which are low compared to those of automakers and some other manufacturing sectors, the major business daily said.
Romanian carmaker Daewoo Craiova returns to the state
The contract for the takeover by the Romanian state of the stake of the South Korean Daewoo Motors in f Daewoo Automobile Romania will be signed next week in Bucharest, stated the ministry of Economy and Commerce
The Office for State Participations and Industry Privatization negotiated the yield by DM of the 51% stock of the DAR back to the Romanian authorities for the extinction of the debt of the Korean car manufacturer.
Founded in 1994 as joint ventures of local car manufacturer Automobile Craiova and Daewoo, local company Daewoo Craiova has an agreement with General Motors Daewoo Auto and Technology, who took over in 2002 a part of the South-Korean group's assets. The agreement stipulates that Daewoo Craiova can produce under Daewoo license until October 2005. DM went bankrupt in 2002.
Minister assures Liberians on Mittal Steel agreement
Land, Mines and Energy Minister Mr Jonathan A Mason has assured Liberians that the Mittal Steel Mineral Agreement signed by the National Transitional Government of Liberia NTGL for the mining of iron ores in Yekepa, Nimba County, is one of the best mineral agreements Liberia has ever signed.
He said unlike in the past when mineral agreements, like the Liberian- American Mining Company LAMCO, a Swedish based mining firm which operated the Yekepa Iron Ores deposit for several years and the people of Liberia never benefited anything from it, the Mittal Steel Agreement will benefit Liberia in several ways and in the long term.
He stressed that the agreement also seriously took into consideration the building of a local steel plant in Liberia.
Angolan cabinet approves restructuring of Ferrangol EP
The structure of the public enterprise Angolan National Iron Firm FERRANGOL-EP, was recently approved by the Cabinet Council. In the ambit of the restructuring process being carried out in this public company, the present statute aims to give the firm a juridical framework that is compatible with new and better forms of management and functioning, adjusted to the current and future economic challenges.
The approval outlines the transfer to FERRANGOL-E.P of the workers from the previously named FERRANGOL UEE as well as its assets and liabilities.
FERRANGOL-EP has as social object the prospecting, research, exploration, treatment and commercialization of resource from iron, manganese and steel. The company is linked to the Ministry of Geology and Mining.
Ukrainian steel enterprises use up 63.9% of U.S. quota through Dec. 1
Aztec joins iron tide with $42m issue for Koolan Island
The flood of emerging iron ore juniors going to the market for funds has grown stronger with iron ore junior Aztec Resources Ltd announcing a $42.3 million rights issue to finance part of its 53 million tonne Koolan Island iron ore project off the Kimberley coast.
Aztec joins a growing list of junior iron ore players taking advantage of historically high prices for the commodity. Aztec completed a bankable feasibility study for the project in August, forecasting a total capital cost of $108 million for the former BHP project. This would allow for an annual production rate of about four million tonnes a year, giving the project a mine-life of nine years. Aztec has in place MoUs to sell an average total of about 3.4 million tonnes an Island is on track to come into production by the end of next year, according to Aztec chairman Mr Ian Burston.
Aztec is the owner of the Koolan Island high quality iron ore project which has a resource of 53 million tonnes. In 2000, Aztec was granted an exploration lease of the previously BHP-owned and operated Koolan Island project, located 130 kilometers north of Derby off the West Australian Kimberley coast. Koolan Island previously produced 68 million tonnes of high grade and low impurity iron ore.
