February, 11 2006
PM to inagurate Visakhapatnam steel plant expansion project
The Prime minister Dr Manmohan Singh would inagurate the expansion project of Visakhapatnam steel plant in the first week of March as told by Andhra Pradesh Finance and Health minister K.Rosaiah.
Addresssing the press, Mr Rosaiah said the cabinet sub-committee of the Government of India has cleared the expansion from 3.5 million tonnes to 6.5 million tonnes with a capital outlay of Rs 8,692 crores.
He said Chief minister Dr YS Rajasekhara Reddy had obtained the project for the state surviving tough competition.
RINL sales turnover up
Visakhapatnam Steel Plant cumulative sales turnover from April 2005 to Jan 2006 reached Rs 6,424 crore mark, representing a growth of 4 per cent over Rs 6,180 crore recorded in the corresponding period last year.
The steel plant sales turnover was at Rs 864 crore in January 2006, up by 11 per cent over Rs 780 crore in the corresponding month of last year, the press release added.
VSP reported a production of 363,000 tonnes of hot metal, 321,000 tonnes of liquid steel and 286,000 tonnes of saleable steel in January 2006.
Steel out of CDR, other sectors to follow
The steel sector, which had generated the majority of sticky assets for the banks and financial institutions, is on its way out of the Corporate Debt Restructuring (CDR) mechanism.
Four large cases from the steel sector, collectively aggregating Rs 9,500 crore have already exited from the CDR mechanism, or are in the final stages of restructuring, and would be exiting soon. The cases that had been up for restructuring with CDR include bigwigs like Jindal Vijaynagar Steel (JSW) aggregating Rs 6,515 crore, and Essar Steel, originally aggregating Rs 2,800 crore. While JSW has already exited CDR, and is a viable unit today, Essar plans to be out of the package before March 31, 2006, by pre-paying its lenders, sources said.
Of the original CDR debt of Rs 2,800 crore as on April 1, 2005, the company has refinanced around Rs 1,400 crore and prepaid around Rs 400 crore. "The remainder Rs 1,000 crore under CDR is expected to be refinanced or repaid by the end of the current fiscal year," said sources.
India Chides Europe on View of Mittal Bid
India's trade minister on Friday criticized European governments opposing a bid by Mittal Steel for European steelmaker Arcelor, warning their stance could derail global trade talks and saying their resistance smacked of racism.
"It's xenophobia," Commerce and Industry Minister Kamal Nath said in an interview. "The government of India is very concerned. We are seeing this with a sense of disappointment."
Mr. Nath said he had expressed India's concerns last week to EU Trade Commissioner Mr. Peter Mandelson.
Nath also argued that it is up to the company's shareholders, not governments, to determine the merits of Mittal's bid.
BCCL to rope in user-sectors for funding mine development
At least two overseas companies are in the race for commencing mining operations in certain seams in Moonidih mines, the country's second deepest mine, owned by Bharat Coking Coal Ltd. Spread over 29 sq. km., these mines contain some of the best coking coal deposits in India.
The technical bids of a Chinese company and an Ukranian company are set to be opened later this month BCCL officials told a daily.
The successful bidder will have to extract about four million tonnes in six years with a minimum annual output of five lakh tonnes. The entire project is likely to be funded by Steel Authority of India.
Quick increase in production was the other compulsion for harnessing overseas companies, said BCCL officials.
Russian steel experts visit TUSDEC
A six-member delegation of Russian steel technologists visited the head office of Technology Upgradation and Skill Development Company (TUSDEC) here on Friday and held a meeting with Chairman Mr. Almas Hyder.
The team leader, Mr. Yuri Kononov, who is also the first vice president of Russian steel technology company VO Tyazhpromexport, briefed TUSDEC officials about the benefits of the Romelt technology, which could be helpful in steel-making from the ore with ferrous (iron) content between 30-35 percent. Moreover, he said non-coking coal could now be used as fuel and reducer. He said the technology had made the use of a wide range of iron-bearing materials, including iron-ore, mill scale, sludge and dusts, possible in the steel making process.
Mr Kononov said the cost of the hot metal produced through Romelt technology was lower by 10-15 percent when compared with that produced by blast furnace technology. He said the by-products of Romelt technology included slag cement, industrial gases and electricity. He said Pakistan needed to develop its iron resources and introduce new technologies in steel-making.
South Korean Shipbuilders ask Japan to cut steel prices
South Korean shipbuilders are turning up the heat on Japanese steelmakers to reduce their steel plate prices, as reported.
The price of imported Japanese steel plates for shipbuilding is currently $680 per ton, far higher than the prices charged by South Korean and Chinese suppliers.
Domestic shipbuilders believe the price of Japanese products, which account for over 30 percent of their annual needs, should be cut below 600,000 won ($618) per ton, the sources said.
South Korea's industry leader, POSCO, and the nation's third-largest steelmaker, Dongkuk Steel Mill, slashed the prices of their steel plates to 615,000 won ($631.60) per ton this year.
Head of Mechel steel plant to sell stake, step down in year
It is reported that the head of Russian steel plant Mechel will sell his 42.2% stake in the company to Board Chairman Mr. Igor Zyuzin and leave his post in a year from now, the company said Friday.
General Director Mr. Vladimir Iorich will gradually hand over his duties to current Executive Director Mr. Alexei Ivanushkin, while continuing to work as general director and a member of the board during the transition period.
Algoma Steel ventures into wind power, diamonds
It is reported that Algoma Steel Inc., one of the heaviest users of electric power in northern Ontario, plans to build wind-power towers next to its steelworks in Sault Ste. Marie.
Algoma announced it has formed a partnership with Schaaf Industrie AG, a German company that plans to put up 180 wind towers a year in the Sault, with a staff of 140 people.
Wind power is one of several ventures that is taking Algoma away from its traditional steel business. The company also disclosed this week that it holds an interest in a diamond property near Wawa, Ont., a small town at the north-east corner of Lake Superior.
Steel maker to hold talks over prices of iron ore
China's largest steel maker Shanghai Baosteel Group Corp, is to begin a new round of price negotiations with three major suppliers this month, as declared China Chamber of Commerce of Metals Minerals and Chemicals Importers and Exporters.
Baosteel will be the only representative of Chinese steel producers in the talks with major miners Australia's BHP Billiton Ltd, Rio Tinto Group, and Brazil's Companhia Vale do Rio Doce to set iron ore prices for 2006, said director with the minmetals department of the chamber Mr. Liang Ruodong.
The detailed timing and venue for the talks are not disclosed yet. The prices drafted with the help of Baosteel would be accepted by all Chinese steel manufacturers and iron ore traders.
Arcelor could buy Eramet to block Mittal
It is reported in a daily that steel group Arcelor could consider buying minerals group Eramet, partly controlled by the French state, in an effort to prevent hostile takeover bid by Mittal Steel.
This is one possible solution being prepared behind the scenes by French officials but Arcelor's board of directors will not necessarily decide to adopt it, said the report.
It is believed that buying Eramet would also solve some political problems. "A deal with Eramet would make Arcelor bigger, it would make strategic sense and it would give the French government more ground to defend the combination out of national interest considerations," said an analyst on the terms of anonymity.
Spanish minister concerned over Mittal`s Arcelor bid
Spanish Industry Minister Jose Montilla has reiterated concerns over Mittal Steel`s hostile takeover bid for Arcelor.
Though Mittal Steel chief executive Mr. L. N. Mittal insisted last week in Madrid that his takeover bid would not destroy jobs in Spain, where the steel giant employs 15000, Montilla on Wednesday reiterated doubts that Economy Minister Mr. Pedro Solbes has already expressed to Mittal.
ESI to acquire Asia Pacific Coal and Steel
Burswood-based waste management company Environmental Solutions International Ltd is reported to acquire Asia Pacific Coal and Steel Pty Ltd for shares worth more than $8 million.
ESI has been in administration since late in 2004 and received a capital injection from Victorian stakeholders late last year. The company paid consideration of 16 million fully paid ordinary ESI shares, valuing the deal at $8.2 million.
Thai G Steel Expects 2006 Rev, Net Up 5%-10%
Newly-listed G Steel PCL (GSTEEL.TH), Thailand's second-largest hot-rolled steel maker by capacity, expects both sales and net profit to rise by around 5%-10% this year. The rise is because of governments plan to invest THB1.8 trillion ($49.71 billion) in infrastructure megaprojects over the next four years.
Sales will likely jump even more in 2007 predicts CEO Mr. Somsak Leeswadtrakul, as the company expects to complete a $250-million expansion project just as construction of the infrastructure projects picks up steam. The company is reported to be in process of increasing its capacity by 1.6 million tons of hot-rolled steel per year to 3.4 million tons in 2007.
OneSteel says no health hazards at its Whyalla pellet plant
OneSteel has released a report into the health of workers at its Whyalla steelworks.
The study, undertaken in 2004 on pellet plant employees, found that there were no adverse health effects as a result of exposure to chemical hazards.
However, it did find that there had been more hearing loss since the last study in 2003.
There has been concern that the red iron ore dust that emanates from OneSteel's pellet plant could affect people's health.
