March, 02 2006
Indian steel makers to increase prices
Indian steel producers will hike prices selectively on Thursday, anticipating a demand push and rising prices in China. The price increase of Rs 1,500-2,000 per tonne on hot rolled coils will be the first hike in steel prices in the last six months. The prices of long products will also go up by Rs 700-1,000 a tonne. This is basically opportunistic pricing as domestic demand is firm and the global steel prices have moved up.
It is reported that some of the steel majors like TATA Steel, SAIL, Ispat Industries Ltd and JSW Steel Ltd etc held meeting to discuss pricing strategy. Sources said that most producers were very cautious on the new pricing strategy, unsure as they are of the market's ability in absorbing a higher price and also the rather tentative recovery of international prices.
Prices of hot rolled coils would be increased by producers by Rs 1,500-2,000 per tonne, depending on various grades, but prices of cold rolled prices would be maintained as the prices of CR coils were already too high.
According to a PTI report, Tata Steel and JSW Steel have already announced the price increase, effective from Thursday. JSW Steel Ltd, too, would raise prices of HR coils by a similar amount (Reported to be Rs 2000 per tonne). Other steel companies are also likely to follow suit shortly.
A Tata steel spokesperson said that the company has increased the price of benchmark hot rolled coils by Rs 1,500 to Rs 2,000 a metric tonne. There is nothing unnatural about raising the prices. We term it as purely adjusting to market forces. The demand for steel is soaring high and Chinese companies have again begun upping their demand, he added.
AP CM assures unions for captive iron ore mines for RINL
Andhra Pradesh CM Mr YS Rajashekar Reddy assured the unions of VSP that he would talk with the CM of Chattisgarh and see that the iron ore mines are given to VSP. The VSP has no iron ore mines of its own.
The CM gave the assurance to the leaders of 15 trade unions from the Visakhapatnma Steel Plant. The M said that if necessary he would even speak to the union ministers concerned for the same.
Coal ministry to clarify about coal block de-reservation plan
It is reported that coal ministry is likely to seek clarification from the finance ministry over the Budget announcement pertaining to de-reservation of a few coal blocks held by Coal India Limited. Apparently the ministry is disturbed that the announcement was made without taking the administrative ministry into confidence. According to official sources, if implemented the proposal would put a question mark long-term sustainability of the PSU and would put on hold all expansion plan of the PSU.
Presenting the Budget for 2006-07 finance minister Mr P Chidambaram announced that government has decided to de-block coal reserves of 20 billion tonnes in favor of power projects after reserving the blocks for CIL and its subsidiaries for the period up to 2012.
NTPC plans overseas power projects
NTPC Ltd plans to set up thermal power projects in Sri Lanka and Nigeria as part of its diversification drive, the Lok Sabha was informed on Wednesday.
NTPC was having preliminary discussions with Government of Sri Lanka for a 500 MW project in Trincomalee region in joint venture with Ceylon Electricity Board, Power Minister Mr Sushilkumar Shinde said. A draft MoU had been sent to the Sri Lankan government in this regard, he said.
In Nigeria, the company was in talks for setting up a coal based integrated plant along with coal mining in lieu of getting gas supplies for import to India, he said.
Vizag port crosses 50 million marks in cargo handling
It is reported that Visakhapatnam Port, the largest cargo handling port among the 11 major ports in the country, has achieved handling of 50.151 million tonnes of cargo a full month ahead of the current fiscal 2005-06.
This is more than the handling of 50.147 million tonnes achieved during 2004-05, an increase of 11.35% over 2003-04.
Siemens VAI receives Breakthrough Project Award
A project completed by VAI, a division of the Siemens Group Industrial Solutions and Services, as part of a steel plant modernization initiative, was awarded a Breakthrough Project Award (Bronze) from Mittal Steel South Africa Limited for the supply of automation systems and the improvements achieved in oxygen steelmaking operations at Vanderbijlpark Steel, South Africa.
In order to standardize and improve production practices in their oxygen-steelmaking plant, Vanderbijlpark Steel decided to have the existing automation system replaced. VAI was subsequently awarded a contract for the supply, installation and start-up of Level 2 automation systems for the various facilities of the steel mill, comprising three hot-metal desulphurization stations, three LD converters, two ladle furnaces, one RH vacuum degassing unit and one ladle-conditioning stand.
One of the main conditions of this project was that ongoing production operations were not to be disrupted and that the time required for the replacement of the existing automation system be kept to a minimum. These challenges were met through the successive automation of each plant unit of the respective steelmaking facilities to enable continuous production operations, as well as through extensive workshop testing of the automation systems jointly with Vanderbijlpark Steel operational personnel prior to delivery to assure a minimized start-up and commission period.
This award is granted each year by Vanderbijlpark Steel in recognition of outstanding project achievements implemented at their steel works.
Ternium announces Q4 and 2005 Results
Techint owned Latin American steel giant Ternium SA announced its results for the quarter and year ended December 31, 2005. Q4 results include net sales of $1.5 billion, operating income of $367.0 million 25% of net sales, EBITDA of $489.7 million 33% of net sales and net income of $168.7 million on shipments of 2.1 million tons. During the quarter, the mills under Ternium's control produced a consolidated 2.4 million tons of crude steel, of which 1.9 million tons were slabs and 0.5 million tons billets.
Net income for the year was US$1.1 billion. Net sales for the fiscal year 2005 were US$4.4 billion on shipments of 6.6 million tons.
Ternium is one of the largest steel producers in the Americas, offering a wide range of flat and long steel products. Ternium has operating locations in Mexico, Argentina and Venezuela that provide it with a strong position from which to serve its core markets. In addition, Ternium reaches the global markets through its broad distribution network.
French finance minister asks for detailed plan from Mittal Steel
It is reported in FT that Mr Thierry Breton, France's finance minister reignited the French government's dispute with Mittal Steel by complaining that its $22.1 billion plan to buy Arcelor was much too thin.
Mr Breton complained that a six page fax from Mittal on the plan contained only six significant numbers. Describing the fax as an "executive summary", Mr Breton demanded to be given the "whole document", arguing that the government needed a full industrial plan to be able to "exercise our role of stakeholder". He said he had established a team of experts to analyze Mittal's bid and to "pose questions".
However Mittal Steel said that it would give its full plan for the bid to Mr Breton at a future meeting, which had been due to take place this week in Paris but could not be fitted into the diaries of both men. Mittal Steel said that the full plan would encompass "all of our commitments with respect to the issues that the stakeholders care about, mainly employment, R&D, capital investment and social responsibility".
Spain judges Mittal Steels plan for Arcelor to be insufficient
The Spanish government said that it had received details of the takeover plan of Mittal Steel for European steel maker Arcelor, but judged the information to be insufficient to alleviate doubts about the operation. The statement from Spanish government was the first official reaction in Spain to the plans, which are expected to include details about the future strategy of the merged group and employment.
A statement from Spanish industry ministry said that the plans, which included six main figures, were insufficient because they do not remove the doubts of the Spanish government felt from the very beginning. "The Industry Ministry believes that the document is insufficient and ... is not what is usually understood by an industrial plan, so the ministry hopes for more explanations," it said. The document had "not cleared up the Spanish government's initial uncertainties about the takeover bid", it said.
The Industry Ministry said it would nevertheless read the six pages carefully. Industry Ministry officials would seek more information at a meeting with Mittal Steel executives soon.
Xstrata 2005 net up 60%
Coal miner Xstrata PLC reported a 60% rise in 2005 profit to $1.71 billion as revenue grew 25% to $8.05 billion.
Xstrata said the higher profit stemmed from increased commodity prices across all its businesses. Thermal coal prices climbed 25%, coking coal prices jumped 71%, copper prices rose 29% and zinc prices added 32% in 2005, Xstrata said. The company also managed to cut costs by $106 million, which was largely offset by higher fuel and energy costs.
Lock out at AK Steels Middletown Works
With negotiators unable to reach a new contract by the midnight deadline, AK Steel locked out nearly 2,700 hourly workers early Wednesday. AK Steel will use salaried and temporary replacements at its Middletown Works to continue filling orders for its customers, spokesman Mr Alan McCoy said. The two sides began negotiating Nov. 30, and tensions rose as the deadline approached.
Union members had recently voted overwhelmingly to authorize their leadership to call a strike if negotiations on a new contract failed. The union said some 400 hourly jobs have already been cut at the plant in the past two years. Mr Brian Daley, president of the Armco Employees Independent Federation, said the union had offered to continue working under the terms of the existing contract, but the company refused. He said both sides agreed to continue negotiating, but no talks had been scheduled.
The company has said reducing the work force is among things AK Steel must do to remain competitive in the increasingly global steelmaking industry. The company wanted to follow the contract model negotiated last year at its Ashland Works in Kentucky. That contract froze the company's pension plan, reduced the number of job classifications so that workers can handle more duties, eliminated guarantees on the number of workers at the plant and increased employees' share of health care expenses.
AK Steel produces flat-rolled carbon, stainless and electrical steels, along with tubular steel products, for customers in the automotive, appliance, construction and manufacturing markets, with sales totaling $5.65 billion in 2005. Besides its hub in Middletown and the Mansfield and Ashland plants, AK Steel has operations in Zanesville and Coshocton in Ohio and at Rockport and Butler.
South Korean steel imports exceed exports in 2005
South Korea saw its steel imports surpass exports in 2005 for the fourth consecutive year due to a surge in imports of cheap Chinese steel the Korea Iron & Steel Association KISA said. South Korea imported 18.87 million tons of steel products last year, while the country exported 16.26 million tons as per KISA.
But the value of exports was greater than that of imports last year, as most of the exported steel products were high priced, the association said. Last years exports were valued at $14.64 billion, while imports were worth $13.31 billion. South Korean companies shipped mostly high-priced products, while cheap products accounted for the bulk of imports, an association official said.
South Koreas steel imports would edge down 0.7% YOY to 18.75 million tons this year KISA said.
Xstrata buys $1.7 billion stake in a Colombian coal mine
Xstrata Plc, the world's biggest exporter of coal used by power plants, agreed to buy a $1.7 billion stake in a Colombian coal mine to tap surging US demand. Xstrata will buy a third of Cerrejon, the world's largest export open pit coal mine. Cerrejon, which will be jointly owned with BHP Billiton and Anglo American Plc, is expanding its annual production capacity to 33 million metric tons from 26 million tons. The mine currently sells about one-fifth of its output to the U.S.
Swiss based Glencore, which owns 40% of Xstrata, will finance the Cerrejon acquisition with bank loans. NM Rothschild & Sons Ltd. is advising Xstrata.
Xstrata wants to expand its coal output after crude oil and natural-gas prices surged to a record in the last several months. That's spurring utilities to rely more on coal-fired generating capacity. US demand for thermal coal imports is expected to jump 21% this year.
ThyssenKrupp still eying Dofasco
German steelmaker ThyssenKrupp AG is reconsidering its proposed acquisition of Canadian steel company Dofasco Inc as part of a new corporate strategy, a board member said Wednesday. Mr Koehler said ThyssenKrupps aim is to grow from a European steel company to a global one. To do that, it needs to gain a foothold and expand in the North American market. The size of the market and the competitive structures in the North American region offers "enormous chances for ThyssenKrupp Steel," he said.
ThyssenKrupp originally had lost out to Arcelor SA in a bidding war for Dofasco. Last month, Arcelor said it had acquired 88.4% of Dofasco and planned to extend its $4.87 billion takeover offer through March 7.
Mittal, which has offered to buy rival Arcelor has said it plans to sell Dofasco to ThyssenKrupp if it acquires Arcelor.
Global Infrastructures forges 20 year deal for ZISCO
It is reported that Zimbabwe government has granted a 20 year controlling interest in the Zimbabwe Iron and Steel Company ZISCO to Global Infrastructures Holdings, an affiliate of the Ispat Industries.
Under the arrangement the Indian partner will turn around and operate the steel mill, burdened by $30 million in debt and in need of a $250 million capital infusion. But the deal could allow Harare to reassume control of ZISCO after two decades.
Global Infrastructures is a subsidiary of Global Steel Holdings, an Indian conglomerate with a steelmaking capacity of 14 million metric tons.
China steel sector margins under pressure in 2006 - NDRC
China's steel sector will suffer margin pressures and possibly even losses in 2006 on overcapacity and rising costs, the country's top economic planning body National Development and Reform Commission said.
The increase in production capacity of the steel industry has outpaced the rise in demand and prices of imported iron ore will continue at high levels NDRC said on its website.
Other input prices including those of coal, electricity, oil and transportation costs are also experiencing upward pressure, the agency said.
NDRC said the combined profits of the steel industry rose 0.96% to 127.4 billion yuan in 2005, with the growth rate 78% points lower than the previous year's.
According to the NDRC, China's steel production capacity hit 470 million tons at the end of 2005 with another 70 million under construction.
US steel imports up in January AISI
Based on preliminary Census Bureau data for January, the American Iron and Steel Institute AISI reported that the United States imported a total of 3,145,000 net tons (NT) of steel in January 2005, including 2,349,000 NT of finished steel. Imports in these categories increased 7.7% and 7.1% respectively, compared to December 2005 and 9.2% and 8.6% respectively over January 2005. On an annualized basis, based on January 2006, total steel imports would exceed 37.7 million NT, which would be the third highest year in history.
Looking at the most recent three month period compared to the previous three month period, the trend shows that finished steel imports overall are up 11.5% and that, from certain countries, the upward trend is especially pronounced. Turkey is up by 141%, Taiwan up by 94%, India up by 88%, China up by 38% and South Korea up by 31%.
Key products with large increases in January compared to the month before include wire rods up by 107%, all other metallic coated sheet & strip up by 31%, bars-light shapes up by 23%, structural pipe & tubing up by 22% and oil country tubular goods up by 15%.
"The increase in imports in January comes on the heels of already high import levels in 2005," said Mr John P Surma Chairman and CEO of United States Steel Corporation and chairman of AISI. "Given the growing challenges faced by U.S. manufacturers from increased imports and foreign unfair trade practices, we plan to play an active role in the fight to reduce the trade deficit, get serious about dealing with market distorting practices in China and elsewhere, and, most importantly, ensure that U.S. trade laws are not weakened in ongoing international negotiations."
AK Steel to increase prices for SS products
AK Steel announced that it will increase transaction prices for all cold-rolled and hot-rolled stainless steel sheet, strip, tubular-quality and continuous mill plate products by approximately 3%, effective with shipments on March 19, 2006.
The increase will be accomplished through a one point reduction in the functional discount rate. The price increase is in response to rising demand for stainless products, as well as the need to recover increased costs.
Headquartered in Middletown, Ohio, AK Steel produces flat-rolled carbon, stainless and electrical steel products, as well as carbon and stainless tubular steel products, for automotive, appliance, construction and manufacturing markets.
DWS urges Mittal Steel to improve corporate governance
It is reported in a daily that Mr Christian Strenger chairman of DWS, a large German fund manager that owns shares in both Arcelor and Mittal Steel, has urged Mittal Steel to improve its corporate governance, saying he was concerned about the level of control by Mr Mittal's family.
He is reported to have criticized the family's intention to keep super-voting rights if the bid for Arcelor were to succeed, which would leave the Mittal family with more than 64% of the votes even though they would own half the shares.
However Mr Mittal is reported to have said that the two votes for one share concept would be in line with that adopted by several European companies with a large family shareholding.
More EU members likely to allow firms for poison pill options
The European Unions long and troubled campaign against poison pills and other takeover defenses is heading for a further setback, with more and more member states deciding not to apply key National governments have until May 20 to implement the directive, adopted in 2004 after more than 14 years of fierce controversy.
The law was originally intended to make it much harder for companies facing a bid to use poison pill tactics such as issuing new shares or entering into complex joint ventures. It would also have curbed the use of shares with multiple voting rights, which can also act as a deterrent to bidders.
However, strong opposition from member states such as Germany and Sweden and lack of support in the European parliament ensured the draft law was severely watered down. The directive now allows member states to opt out of the key rules on takeover defenses and, according to two new surveys, most states are doing just that.
Such moves may violate the spirit of the directive, but are almost certainly allowed under the weak compromise that the EU eventually agreed two years ago. Crucially, the law left member states free to decide whether to apply its core provisions relating to poison pill defenses.
Chinese and Japanese mills rumored to join hands on iron ore
China and Japan have reached an understanding to block iron ore price hikes ahead of the next round of price talks, the Shanghai Securities News reported. The newspaper cited a source from the China Iron and Steel Association as saying CISA and Nippon Steel have been in communication and have reached a tacit agreement to work together to oppose further rises in import prices for iron ore." No further details were given.
Last month the third round of negotiations between China steel sector representative Baosteel and the world's three largest iron ore producers BHP Billiton, Rio Tinto Group and CVRD finished without any agreement.
PSMC Privatization Process challenged in court by workers
The CBA union of the Pakistan Still Mills has challenged the constitutional validity of the Privatization Commission Ordinance 2000 and rules and procedures framed under the ordinance.
The Pakistan Steel Peoples Workers Union filed a petition in the Sindh High Court on Wednesday. In the petition, the court has been prayed to declare certain provisions of the PCO 2000 ultra vires to the constitution and the privatization process of Pakistan Steel Mills without lawful authority.
They said that while taking a decision about PSMCs privatization, the federal government neither consulted Sindh nor did the prime minister convene the Council of Common Interest as required by articles 153 and 154 of the constitution. The petitioners said that sections 3, 5, 6, 7, 9, 14, 16 and 22 of the PCO 2000 were in total violation of articles 153 and 154 of the constitution and without prior approval of the CCI, the privatization and purported sale of the shares and management control of the PSM would be illegal.
They prayed the court to direct the federal government to constitute the CCI under articles 153 and 154 and declare that provisions 3, 5, 6, 7, 9, 14, 16 and 22 of the PCO 2000 were ultra vires to the constitution. The petitioners also prayed the court to declare that the present process of privatization of the PSM was in violation of articles 2-A, 3, 4, 5, 9, 25 and 38 of the constitution, were arbitrary, irrational and without lawful authority.
Danieli & Techint form alliance on Consteel design
Danieli SpA and Techint Technologies announced they intend to combine their electric melting expertise to supply Consteel furnace packages worldwide to avoid patent infringement in EAF scrap preheating.
Consteel is an EAF furnace design that uses combustion heat to preheat scrap through a fifth furnace hole prior to charging to the bath. The technology was acquired by Techint from its developers in the 1990s, and is installed in 22 EAF melt shops around the world. Danieli developed its own scrap preheating technique, which has been installed at three melt shops.
According to a Danieli statement, the Consteel Alliance will result in better customer support and enhanced technological development to be carried out jointly by Danieli and Techint.
With regard to the very strict patent protection of this technology, a Techint statement explains, which would have brought the two companies into long lasting and expensive legal disputes, Danieli and Techint decided to join their efforts and knowledge in this field with the application of Consteel technology as the only system for continuous charging and preheating for EAF steelmaking.
Metal Management acquires Morris Recycling
Metal Management Inc announced that it has completed the acquisition of substantially all of the assets of privately held Morris Recycling Inc. Terms of the transaction were not disclosed.
Mr Daniel W Dienst, Chairman President and CEO of Metal Management said, "The Morris assets fit neatly into our existing footprint in the Mid-South region and advance our ambition to make Metal Management the largest, strongest and most profitable scrap metal recycler in North America. We expect that this acquisition will be accretive to Metal Management's earnings per share, and will provide us with additional facilities from which to serve our important customers and consumers."
Morris Recycling is a leading full service scrap metal recycler serving Mississippi and portions of Arkansas, Tennessee and Alabama. Through its 10 operating facilities including a shredding plant on the Mississippi River, Morris Recycling handles approximately 240,000 tons of ferrous metals and 32 million pounds of nonferrous metals each year.
Metal Management is one of the largest full service metal recyclers in the United States, with approximately 50 recycling facilities in 16 states.
Mexico's AHMSA says 12,000 workers walk out
In a first sign of a nationwide miners and metal workers stoppage, Mexico's AHMSA said Wednesday that 12,000 union workers stopped work at its coal mines and steel plants in support of their embattled leader.
"The stoppage started last night," Francisco Orduna, AHMSA's spokesman, told Reuters. "They are 12,000 workers from mines and plants." With the walkout, AHMSA will stop producing 10,000 tonnes of steel per day and 30,000 tonnes of coal, Mr Orduna said.
Mexico's mining union called on its members to stop work on Wednesday in a show of support for its leader, who is being challenged by another union member for the top post.
Thai Metal sales up by 24.38% in 2005
Thai Metal Trade Public Company Limited, a full service steel service centre, announced its audited results for the fiscal year ended 31st December 2005. The Companys sales grew by 24.38% to Baht 6,762.46 million from Baht 5,436.75 million in 2004.
The Company reported a gross margin of 6%, a decrease of 4.53% from the previous year and a net profit of Baht 165.13 million, a decrease of 46.58%, which resulted from steel price fluctuations in the market leading to sluggish product prices but higher steel costs.
A management statement said During the year 2005, the Company encountered fluctuations of steel product prices. This resulted in a decrease in our gross margin and net profit. However compared to our competitors, the Companys performance was still satisfactory, with sales up by 27% compared to the same period last year. We believe that the economy will continue to expand this year along with an increase in public and private construction projects, while demand for steel pipe and C-Channel steel has been increasing, and our products have received a good response from the market. Sales of these products accounted for 8.71% of our total sales in 2005. We believe that the new cold-forming production line will boost sales and result in further significant growth in 2006.
Chinas coal prices to remain high in 2006 KGIS
KGI Securities has retained its Neutral stance on Chinas coal sector with the expectation prices will hover around high levels in 2006.
It said that due to the government policy of controlling small coalmines as well as the peak coal consumption season, pithead coal prices have been driven higher by 10% since the end of last year. Coal prices at trans-shipment points had also struck historical highs, underpinned by strong pithead prices, the broker noted.
Coal output slumped by 10% YOY in January to 140 million metric tons, according to Chinas State Administration of Coal Mine Safety.
Kazchrome boosts net profit 32% in 2005
Kazakhstan's chrome corporation boosted net profit by 31.6% in 2005 to 46.248 billion tenge in 2005, the corporation said in a report filed with the Kazakhstan Stock Exchange. Revenue grew by 16.8% to 150.386 billion tenge and costs 5.8% to 60.483 billion tenge.
Kazchrome produced 1.33 million tonnes of ferroalloys up by 4% from 2004. Chrome ore production amounted to 3.566 million tonnes, up 9% and manganese concentrate came to 305,200 tonnes.
Kazchrome includes the Aktobe and Aksu ferroalloy plants in Pavlodar region, Donskoi chrome mines in Aktobe region and Kazmarganets in Karaganda region.
Leighton bags contract to develop BHPB Mitsui coal mine
Leighton Holdings Ltd an Australia's construction company, won a A$330 million contract to build a coal mine for BHP Mitsui Coal Pty. Leighton will start work in the June quarter on the mine, which is located in central Queensland in northeastern Australia, the company. The contract is for five years, it said.
Leighton has been benefiting from projects for new roads and mines in Australia, and has a near-record A$14.8 billion of work to be completed in the next five years. Contract mining work is soaring as miners expand capacity to meet surging demand from China for raw materials.
BHP Mitsui, a JV which is 80% owned by BHP Billiton, plans to produce 3 million tons of coking coal per annum from the mine by 2009, with the coal processed at a plant run by Excel Coal Ltd.
ThyssenKrupp to supply open pit mining equipment for China
ThyssenKrupp Fdertechnik has received an order from Huaneng Yimin Coal and Electricity Co Ltd. to deliver a new continuous coal crushing and haulage system for the phase 2 expansion of the Yimin open-pit coal mine in the People's Republic of China. The mine, close to the town of Yimin in Inner Mongolia, supplies coal to the local power station of Huaneng Power International Inc, one of China's biggest independent power utilities.
The total order is worth around 17.5 million euros and includes the engineering, supply and putting into service of a fully mobile in-pit crushing plant, a crawler-mounted belt wagon, a hopper and cable reel car, a shift able bench conveyor, a re locatable conveyor bridge semi-mobile belt wagon, and a transport crawler.
In temperatures as low as minus 40 degrees Celsius, the new equipment will handle 3,000 metric tons of coal per hour. The fully mobile in-pit crusher will be loaded with coal directly at the mine face by a rope shovel without the use of any heavy truck. Downstream from the crusher the coal will be transported continuously on belt conveyors, which can be extended vertically and horizontally using the belt-wagon to make the overall system highly flexible. Whenever the bench conveyor needs to be shifted, the transport crawler will be used to reposition the semi-mobile belt wagon and the conveyor drive station.
This new continuous open-pit mining system will be the first of its kind in China. The fully mobile in-pit crusher is new developed equipment by ThyssenKrupp Fdertechnik which will be the future for all open pit mining operations with large outputs worldwide. For hard and very hard material to be excavated, ThyssenKrupp Fdertechnik can supply mobile in-pit crusher plants and all down-stream conveyors with a nominal capacity of up to 12,000 metric tons per hour.
Xstrata tips strong commodity prices
Xstrata says demand from emerging economies for metals and energy will continue to underpin the commodity boom. CEO Mr Mick Davis said "Continued growth in demand for metals and energy products in the fast-growing economies of China and India, the resurgent performance of the Japanese economy and encouraging indicators in respect of European growth are all supportive for the sector.
"As a consequence, the outlook for 2006 is very encouraging."
He said that while prices could ease back from their exceptional recent levels, he was confident they would remain above their long-run averages for a number of years.
Vulcan uncover new Vanadium deposits
Finland focused base metals explorer Vulcan Resources has announced that it has secured a major vanadium deposit and further vanadium prospects in Finland.
Past production results, and geophysical and geological data provide evidence of the potential for large deposits in the company's tenements, and the deposit styles uncovered are similar to those in South Africa and Western Australia at Balla Ballain the Pilbara and Windimurra near Mount Magnet.
Vanadium is used primarily in the production of steel and alloy to provide added strength and malleability.
Mittal Steel Roman turns around in 2005
Romania based Mittal Steel Roman Co, a seamless tube maker, posted RON 28.3 million in net profit in 2005, after having reported losses of RON 4.4 million in 2004, as per media report. Mittal Steel Romans turnover rose to RON 775 million from RON 13 million in 2004 and the total expenditure jumped by 30% to RON 827 million from RON 615 million in 2004.
In 2005, the company upgraded a furnace, bought five new cranes, NDT equipment and lab test devices. The company also received the quality certificate for unwelded tubes, being authorized to supply Oil Country Tubular Goods for extraction at Shell's standards from Shell in 2005.
Carlyle buys John Maneely Co
The Carlyle Group will pay $500 million to buy New Jersey based John Maneely Co a maker of steel pipes and the tubes.
JMC, with seven plants and 1,700 employees, had annual revenues last year of $715 million and is the parent of Wheatland Tube Co and Seminole Tubular Products Co.
Strikers shut Mittal Steels Mexican steel plant
It is reported that workers at Mittal Steel's Lazaro Cardenas steel plant in Mexico have joined a nationwide strike in support of an embattled union leader. Other steel plants were also closed by the strike, which spread through out Mexico's major mine and metals operations on Wednesday. Workers walked off the job in support of union boss Mr Napoleon Gomez, who is facing a leadership challenge.
"There is a strike by union workers. The administrative workers have not entered the plant and nobody is here other than emergency staff," said a source at the mill complex
Mittal's Lazaro Cardenas plant is the largest in Mexico and produces about 4 million tonnes of steel per year.
Shanghai Exchange may start to trade in steel futures
The Shanghai Futures Exchange, one of China's three futures bourses, may get the green light to trade steel wire rod futures this year, China Securities Journal newspaper reported yesterday. The move is expected to boost the industry.
An official from the Shanghai exchange refused to predict when it will get approval from the regulator, only saying the exchange is actively working on the project. "I have no information on whether we will be allowed to trade this new product," the official said.
Shanghai Futures Exchange, which has started research on steel futures since 2001, has already submitted an application to China Securities Regulatory Commission in last December. Besides Shanghai Futures Exchange, Dalian Commodity Exchange, another futures bourse, has also submitted an application to trade steel futures.
The Shanghai futures bourse, in an internal office meeting earlier this year, has put steel futures, copper options and stock index futures at the top of its agenda this year. It currently offers copper, aluminium, oil fuel and natural rubber futures trading.
Mining strike in Mexico hits steel mills also
A Mexican miners strike expanded nationwide as workers joined to pressure for union independence, social benefits and improved security after 65 workers died last week from a coal mine blast, a union official said. Workers at more than 70 companies including almost all steel mills have joined the strike.
National Mining Union spokeswoman Consuelo Mr Aguilar said The government is on the side of business,'' Aguilar said. It must respect the union's autonomy.'' The strike will continue until the government accepts union leader Mr Napoleon Gomez as general secretary.
Labor Minister Francisco Salazar called the national strike illegal and said the government will only deal with rival union leader Mr Elias Morales.
Xstrata weighs options for Falconbridge stake
Swiss-based Xstrata PLC is considering options for its 20% stake in Falconbridge Ltd. "And now, for what you've been waiting for, I'll mention the word Falconbridge," Xstrata CEO Mr Mick Davis told analysts and investors at the end of his presentation of the company's 2005 results in London. "Our 20 per cent holding of Falconbridge remains a source of value potential for Xstrata," he said, noting the continued delays in the Canadian company's friendly takeover by rival Inco Ltd.
"The closure of the Inco offer has been somewhat delayed by the antitrust authorities in the United States and in Europe, and we of course continue to assess all the various options open to us."
Xstrata has been a suitor for Falconbridge ever since it paid Brascan Corp, now called Brascan Asset Management, $2 billion in August for a 19.9 per cent stake in Falconbridge. In October, Falconbridge's board accepted a friendly C$12.5 billion takeover bid from Inco, but speculation has persisted that Xstrata will launch a rival takeover bid for Falconbridge.
Hunter mines contribute to big Xstrata profit
Mining giant Xstrata says improved efficiencies at two of its Hunter Valley coal mines have contributed to a $1.7 billion profit for 2005, up 60% on the previous year.
CEO Mr Mick Davis attributes the end of year profit to higher commodity prices across its zinc, copper and coal operations. The company's Hunter Valley coal mines were singled out for their solid performances. Mr Davis says lower cost production at its Beltana mine, near Singleton and its Ulan operation in west of Merriwa led to efficiency gains of more than $43 million.
The Beltana mine set new Australian productivity records last November, with 50,000 tonnes of thermal coal produced in a single day and a million tonnes produced during the month.
