March, 23 2006
TATA Steel production crosses 5 million mark
TATA Steel has announced that its hot metal production had surpassed 5 million tonnes for the first time after an expanded facility came on stream.
The company had revamped one of its blast furnaces in April 2005 to double its capacity to 2 million tonnes in April.
Tata is expanding its steel capacity to 7.5 million tones by 2008 from the current 5 million tonnes.
Sesa Goa sees 10% increase in iron ore prices
India's largest private sector iron ore exporter, Sesa Goa Ltd, expects ore prices to rise at least 10% for the year beginning April, a senior company official said on Wednesday. "Everybody knows that there will be a price increase. The only doubt is about the quantum of increase," Mr PK. Mukherjee, finance director told Reuters. "Our view is that there will be an increase of around 10%" he said.
Sesa Goa, 51% owned by Japan's Mitsui & Co Ltd, has mines in the southern Indian states of Goa and Karnataka and Orissa in the east. Sesa Goa also operates a 280,000 tonne per year metallurgical coke plant and 220,000 tonne per year pig iron plant. It expects to sell about 10 million tonnes of iron ore in the year to March 2007, up by 5% from an estimated 9.5 million tonnes in the current year.
CIL to increase e-auctioned coal quantity in 2006-07
It is reported that Coal India Limited intends to sell 80% more coal through e-auctions next year. The amount of coal on offer through the platform will thus increase from 20 million tonnes this year to 36 million tonnes in 2006-07. Enthused with the success of e-auctions, which involves selling coal through a process of electronic bidding, we have decided to make more coal available to our clients through the platform, CIL officials said. The company has already requested for the coal ministrys approval.
CIL has allocated about 16.6 million tons of coal through e-auctions till February 06. This has resulted in a price realization 50% higher than the notified price for such grades of coal. CIL feels that in the long run, such high price realization will decline and e-marketing prices will stabilize between 25% and 30% above the notified price.
This comes as a breather to a large number of core sector companies like steel and cement, which have been looking at availing of more coal, both coking and non-coking, through e-auction, said industry officials.
BCCL & TATA Steel coking coal JV plan ditched
It is reported that the proposal for setting up a joint venture company by Bharat Coking Coal Ltd and TATA Steel for developing the Kapuria underground coal block stands cancelled. The Ministry of Coal has now asked the BCCL board to evolve suitable norms and guidelines for selection of partners and send their proposals for approval.
The decision to form a joint venture with the TATA was taken following the Ministry's in principle decision to involve the private sector in coal mining. Later, SAIL and the Jindal group evinced interest and approached the Coal Ministry.
"Since more than one party was interested, the Ministry decided that suitable norms be evolved by the BCCL board for the selection of the joint venture partner and the Ministry would take a final view on the matter after that," a sources said. "The move is to ensure transparent decision making sources said.
POSCO waiting for R&R policy from Orissa government
POSCO is keenly awaiting the finalization of the rehabilitation and resettlement policy by the Orissa government for start of work on its proposed 12 million tonne steel project at Paradip. "We are waiting for the finalization of R & R policy. The sooner we get the R & R guideline from the state, it is better for us. We want to commission the first phase by December 2010", said Mr Tae-Hyun Jeong the deputy MD of POSCO India Ltd.
The Orissa government had set up a ministerial committee to formulate a comprehensive R&R policy following the January 2 police firing at Kalinga Nagar which killed 12 tribals.
POSCO in a bid to minimize the trouble arising out of possible displacement of people on account of its project at Paradip has cut down its land requirement to 4,000 acres from the earlier stated 5000 acres. "The plant area has been downsized after we came to know that 2,000 less families will have to be relocated. Now just 400 families will have to be taken care of", Mr Jeong said. "We will try to ensure minimum displacement and offer a good package to the land outstees", he added.
Pending the finalization of R&R policy by the state government, Posco on its part has already engaged the Tata Institute of Social Sciences Mumbai for a social-impact study for the project.
Techint to supply 2 walking beam furnaces to Bhushan Steel & Strips
It is reported that Bhushan Steel & Strips Ltd awarded a contract to Techint Technologies for the engineering and supply of two walking beam furnaces rated at 300 tons per hour to be installed in the hot strip mill located in the Orissa.
The top and bottom fired furnaces, able to handle a wide range of steel quality, will be equipped with the most recent and innovative technical solutions for this kind of plants, thus warranting top performances.
Metaljunction plans coal futures auction
Metaljunction is a 50:50 JV between TATA Steel and SAIL. In collaboration with CIL, it has already launched spot electronic auction platform on coal, named as Coal Junction. The platform, trading primarily in coking and thermal coal, has resulted in a substantial increase in realization per tonne of coal.
It is reported that Indias premier steel and coal portal Metaljunction is considering launching forward contracts for coal to meet the long term needs of the coal users primarily in middle and small segments. "We have had initial discussions with CIL, the Union Coal Ministry and other related parties on the issue. We are yet to finalize the mechanism," said an official of metaljunction.
The price volatility in coal had increased substantially in the last few years, paving the way for launch of forward contracts. "However, we are not interested in setting up a simple futures trading platform as it is generally crowded by investors or speculators who prefer cash settlement. We want serious participants who are interested in both hedging their input price risks and firming up long-term supplies through the proposed system. Accordingly, the platform will be a hybrid of forward and futures trading platforms," he said.
Maharashtra Seamless setting up a Pipe Coating Plant
Maharashtra Seamless Ltd has informed BSE that the Company has finalized a 3 Layer PE Pipe Coating plant to meet the needs of Oil & Gas sector for cross country Pipe Line Projects.
The Company has finalized foreign suppliers for the project. The Plant would be installed at Nagothane in District Raigad and would cost approx. Rs 250 million and is scheduled to be completed before March 2007.
TATA expects Bangladesh investment to be on track
TATA group hopes to resolve the issue of natural gas prices for its proposed $2.5 billion investment in Bangladesh shortly.
TATA Steel said that its proposed 2.4 million tonne steel plant in Bangladesh was on track and hoped to settle all outstanding issues with Dhaka soon. The plant was scheduled to be completed in 2007.
"I expect the gas pricing issue to be resolved soon" Mr B Muthuraman MD of TATA Steel told Reuters on the sidelines of an industry conference. Negotiations are on about the gas pricing and we are very happy with the positive attitude of Bangladesh government. We hope to start work on the Rs 6,000 crore project this year he said.
Bangladesh minister for finance and planning Md Saifur Rehman said the discussions were positive and would help complete the project.
Our negotiations with Tata Steel are positive and we are currently discussing gas supply to their project, he told reporters.
Maoists blast rail track & NMDC installation
It is reported that Maoists blasted a railway track and detonated an explosion in a National Mineral Development Corporation installation in Dantewada district of Chhattisgarh bordering Andhra Pradesh. Though there were no casualties there was panic and heavy loss to property, police said.
This is the third time since February 1 Maoists have targeted NMDC installations in Dantewada district and triggered major blasts at Kirandul locality.
Maoists also damaged a 10 kilometer stretch of the railway track in the Bailadila-Visakhapatnam section.
The NMDC has three iron ore mining deposits at Bailadila and its iron ore is mostly imported to Japan through Visakhapatnam port.
Karnataka to have mining policy soon
The Karnataka government will shortly come out with a mining policy to regulate and streamline the sector. Announcing this in the Assembly CM Mr HD Kumaraswamy pointed out that illegal mining was taking place in the state with the global demand for iron ore ever increasing.
Action has been initiated against illegal mine owners. But we feel that an appropriate mining policy will put an end to such activities. Karnataka has rich deposits of various ores. The policy will be aimed at regulating the sector, he explained.
A group of experts will be constituted shortly to come out with the draft of the policy. As soon as the draft is presented to the government, the policy will be prepared in consultation with mine owners and industries.
ISMT board approves capacity expansion
ISMT Ltd has informed BSE that the Board of Directors of the Company at its meeting held on March 22, 2006, has approved capital expenditure plan aggregating to Rs 2500 million.
The said capital expansion will increase the tube making capacity from 155,000 tonnes per annum to 475,000 tonnes per annum. The project will be funded through internal accruals.
Railway freight revenues rise by almost 17% in 11months
Indian Railways have generated Rs.32411.47 crores of revenue earnings from freight traffic during the first eleven months of the current financial year ending February 2006 as compared to Rs 27723.79 crores during the corresponding period last year, an increase of 16.91%. Railways carried 600.58 million tonnes of freight traffic during the first eleven months of the current financial year ending February 2006 as compared to 541.97 million tonnes carried during the corresponding period last year, an increase of 10.81%.
The revenue earnings from freight traffic during the month of February 2006 were Rs.3180.98 crores, compared to Rs.2660.31 crores during the corresponding period last year, an increase of 19.57%.Railways carried 57.77 million tonnes of freight traffic during the month of February 2006 as compared to 50.21 million tonnes during the corresponding period last year, registering an increase of 15.06%.
Of the total earnings during the month, Rs.1192.99 crores came from transportation of 25.05 million tonnes of coal, followed by Rs. 244.51 crores from 2.71 million tonnes of petroleum oil and lubricant, Rs. 275.19 crores from 5.84 million tonnes of cement, Rs. 193.50 crores from 3.24 million tonnes of iron ore for exports, Rs. 312.82 crores from 3.75 million tonnes of food grains, Rs. 136.24 crores from 2.60 million tonnes of fertilizers, Rs. 156.32 crores from 4.37 million tonnes of raw material for steel plants, Rs. 163.16 crores from 1.53 million tonnes of iron and steel for steel plants and Rs. 506.25 crores from 8.68 million tonnes of other goods.
Sesa Goa announces Mr PK Mukherjee as new MD
Sesa Goa Ltd has informed BSE that the Board of Directors of the Company at its meeting held on March 21, 2006 has decided to appoint Mr PK Mukherjee, the present Director Finance, to be the Managing Director of the Company effective from April 01, 2006 in place of Mr LA Dean whose tenure will expire on March 31, 2006.
TopAsian Mill barred from selling pipes under "GUJARAT" brand
New Delhi based Hi-Tech Pipes Ltd., which has been manufacturing and selling ERW steel tubes since 1987 under brand name of GUJRAT had filed a case of trademark infringement against Gujarat based Asian Mills Pvt Ltd which has been selling its ERW steel tubes under brand name GUJARAT
It is reported that in a recent judgment, court restrained Asian Mills from using the either of the trade marks GUJARAT or GUJRAT.
Man Industries completes GDR offering of $ 35 million
Man Industries India Ltd has informed BSE that the Company has successfully raised $35 million through the issue of 67.3077 million GDRs. Each GDR, representing one underlying equity share, were priced at $ 5.2.
Although the issue was oversubscribed for the offering size of US$ 50 million, the Company decided to retain only $ 35 million as some applicants sought high discounts on market price.
The GDRs will be listed and traded on the Dubai International Financial Exchange. The Company became the first Indian Company to be listed on DIFX. ICICI Securities and Dubai Bank acted as the Lead Manager on the GDR offering.
Luxembourg lawmakers back takeover law changes
Luxembourg's parliaments finance committee yesterday backed a change in the country's takeover rules that could threaten Mittal Steel's hostile bid for Arcelor adding a twist in the merger battle. The finance committee backed a change which would prevent a bidder from re submitting a takeover offer for a listed company in Luxembourg for a period of 12 months. The amendments will now be sent to Luxembourg's highest administrative court and then to the floor of parliament.
The head of the finance committee Mr Laurent Mosar told reporters that he expected the changes would clear parliament in the first week of April and the law could come into force in May when any takeover bids running at the time would have to comply with it.
Analysts said they were unsure what effect on Mittal Steel's prospects it would have, saying they needed more details of the change. But it is said that this change could hurt Mittal Steel if Arcelor moves to defend itself, for example by issuing more shares, forcing Mittal Steel to seek to re submit its bid. "This could be used as a poison pill" a source said.
In some countries companies must consult shareholders before increasing the number of shares, a move which can water down the value of existing shares. However Arcelor CEO Mr Guy Dolle has said his company did not need to resort to a poison pill defense as shareholders were very satisfied with the company's performance.
A European Commission spokesman declined to comment on Luxembourg's move. He said EU member states have to implement the rules by May 20 after which the Commission will review whether the amendments were in line with EU regulations.
China to start 4th round iron ore talks in next week
China's Shanghai Baosteel Group Corp, representing the country's steelmakers, will launch a fourth round of iron ore talks with three major mining companies next week, the official Xinhua News Agency reported. Officials at Baosteel Group declined to comment.
Baosteel Group has been in talks with BHP Billiton, Rio Tinto and CVRD since late last year to set 2006 iron ore prices. The negotiations have been deadlocked ever since, as Baosteel holds a different point of view on iron ore's price trend from the three companies.
While Baosteel, widely believed to be supported by the Chinese government, insists on a cut in 2006 iron ore prices, the three mining companies have been seeking a 20% increase in prices to be offered to Chinese steelmakers from last year's $41-$42 per ton on FOB.
NLMKs Mr Lisin rumored to be eying Arcelor stake
Russian steel billionaire Mr Vladimir Lisin plans to buy 15% of Arcelor SA, Vedomosti, a Moscow business newspaper reported, citing acquaintances of the businessman whom it didn't identify by name.
Vedomosti quoted one of the unnamed sources as saying: "Nobody is allowing Russian metallurgists access to big acquisitions in Europe. Lisin wants to change this situation and take part in a large European metallurgical grouping".
Lisin's office told Reuters that "as a matter of policy the company does not comment on rumor or speculation."
Arcelor spokesman Mr Jean Lasar declined to comment saying the company never responds to "rumor."
Mr Lisin controls OAO Novolipetsk Iron & Steel, Russia's fourth biggest steel producer, and is the country's third richest man with a $10.7 billion fortune, according to Forbes magazine. NLMK, Russia's third-biggest steel maker by output, placed 7% of its stock in London in December, raising $609 million. At the time this valued the company at $8.7 billion. NLMK runs the Novolipetsk steel plant south of Moscow and in January bought Denmark's Dansteel.
Kumba's new coal company to be named as Exxaro
A coal company due to be spun off from South Africa's iron ore and coal producer Kumba Resources will be named Exxaro Resources Ltd. and is due to be listed around mid 2006, Kumba said.
Kumba Iron Ore and Exxaro will each be separately listed on the Johannesburg Securities Exchange when the deal is finalized.
Kumba, majority owned by mining giant Anglo American Plc, announced last October it was splitting up into an iron ore firm and one focusing on coal and heavy metals that would be the country's biggest black owned firm. The deal allows Anglo, which now owns 66.2% of Kumba, to keep a strong presence in the lucrative iron ore industry while also meeting government demands to spread more ownership to the country's majority blacks. Anglo would hold 49% of Kumba Iron Ore and 17% of the new diversified mining company, which will produce more than 45 million tonnes of coal per year.
Kumba announced recently that Mr Sipho Nkosi CEO of unlisted black owned Eyesizwe Coal will take over in a year's time as head of the coal firm when Mr Con Fauconnier the current CEO of Kumba retires. Kumba has appointed Mr Ras Myburgh, former general manager of Kumba coal as CEO of Kumba Iron Ore.
Rio Tinto says that strong iron ore demand from China to continue
Rio Tinto Plc said that it expects strong iron ore demand from China to continue. Mr Sam Walsh CEO of Rio Tinto's iron ore division said in a speech at the Chartered Institute of Purchasing and Supply Australia in Perth that there is no end in sight to the global commodities boom and mineral and metal prices will remain above their long term trend for some time to come.
Mr Walsh said the iron ore market is extremely tight but there had been a recent shift by the Chinese to accepting a price increase. "If you look at the iron ore spot price, that is also strengthening," he said. "That to me indicates things are on the move and steel mills want to settle now, quickly, before the market get tired of it."
Mr Walsh said he was not in any hurry to settle the benchmark price and couldn't be sure when that would eventuate. "People are starting to talk numbers and that is an encouraging signs that people have moved away from a decrease to actually recognizing market fundamentals."
TMK signs 3 year agreement with CPTDC for pipe supply
Russian pipe major TMK and China Petroleum Technology & Development Corporation have concluded a three year cooperation agreement. The document provides for mutual collaboration between the parties aimed at ensuring CPTDC requirements for pipe products manufactured by structures under the control of TMK from OJSC Volzhsky Pipe Plant, OJSC Seversky Tube Works, OJSC Sinarsky Pipe Works and OJSC Taganrog Metallurgical Works.
Coordination of the joint action will ensure the output of optimal solutions for the development and introduction of new types of products, execution of production orders and delivery of pipe products to CPTDC.
TMK GD Mr Konstantin Semerkov stated that this agreement will serve the further development of the mutually beneficial partnership and cooperation between TMK and Chinese consumers of pipe products, which is a substantial contribution to broadening the scope of the TMK on the international market.
China Petroleum Technology & Development Corporation is a subsidiary structure of the leading Chinese oil company China National Petroleum Corp, which ensures the purchase of equipment and materials.
TMK is the world's second biggest pipe producer and third biggest producer of seamless pipes for the fuel and energy sector. It controls 42% of Russia's overall market for steel pipes. TMK produced 2.86 million tonnes and exported 750,000 tonnes of pipe in 2005. TMK's biggest shareholders are TMK Steel Limited and Dalecone Limited.
Arcelor warns CVRD not to lose iron ore business to Russia
CVRD risks losing business to Russian rivals in the event it seeks excessive iron ore price increases from European steelmakers Mr Michel Wurth deputy CEO of Arcelor said. He declined to comment on the status of negotiations with Vale. European steelmakers are CVRD's biggest and best customers.
Mr Wurth said that CVRD should consider the long term advantages of a good relationship with Arcelor and other European steelmakers or risk losing business as clients increase production at integrated mine and steel projects in Russia and Eastern Europe. "Vale needs to look to long-term partnerships with Europe," Mr Wurth said. "Vale is the closest major iron ore supplier to Europe and would not benefit from producers moving more production to integrated plants in Russia."
European steelmakers expect iron ore prices to rise about 12% to 15% in negotiations with CVRD and other producers.
Brazilian Trade Minister Luiz Fernando Furlan told reporters in Sao Paulo that some European steelmakers have already accepted increases of that magnitude in talks with mining companies. "I don't think the minister is really in a position to know about these things," Mr Wurth said. "I'm not going to get into a public negotiation."
Mittal Steel US CEO Mr Lou Schorsch new Chairman of AISI
Mr Louis L Schorsch CEO of Mittal Steel US will become chairman of the American Iron and Steel Institute April 1.The board of directors of AISI, the trade organization of North American steelmakers, chose Mr Schorsch to succeed Mr John Surma, president and CEO of US Steel Corp. As chairman, Mr Schorsch will support the role that AISI provides in driving initiatives that are best done through the collective focus of a strong trade association.
"AISI is committed to the development of a sustainable North American steel industry, one built on strong financial performance, environmental solutions and progressive social contributions," said Mr Andrew G Sharkey III president and CEO of AISI. "Mr Lou brings excellent leadership skills to this effort as a revitalized industry seeks to expand markets for North American steel and increase the North American share of the steel market" he said.
AISI is a non-profit association of North American companies engaged in the iron and steel industry. The Institute serves as the voice of the North American steel industry, speaking out on behalf of its members in the public policy arena and advancing the case for steel in the marketplace as the preferred material of choice. AISI also plays a lead role in the development and application of new steels and steelmaking technology. AISI is comprised of 33 member companies, including integrated and electric furnace steelmakers, and 118 associate and affiliate members who are suppliers to or customers of the steel industry.
WISCO to build iron ore wharf in eastern China
The Wuhan Iron and Steel Group plans to build a 200,000 to 250,000 tonne iron ore wharf in one of eastern China's ports, a senior WISCO official said. "Three ports in eastern China the Rizhao Port in Shandon, Lianyuangang Port and Yangkou Port in Jiangsu Province are now being considered by WISCO for the project," Mr Chen Mingfa, a director with WISCO's planning department said.
Mr Chen said that WISCO will choose one from the three port locations depending on which local government gives more preferential policies. WISCO plans to invest RMB 2 billion ($250 million) into the project that should start at the end of 2007 or the beginning of 2008.
According to the companys five year plan, WISCO aims to become one of largest automobile steel and electrical steel production bases in China. The plan also refers to further port construction, raw material supply, as well as the development of sintering, pellet, coking and smelting capacities. "In accordance to the plan, WISCO needs iron ore imports amounting to 20 million tons per year from 2006 to 2010, and building up WISCOs wharfs is an important part of our raw material supply strategy," Mr Chen said.
Mechel GD Mr V Yorikh reduces stake in company
It is reported that the General Director of Mechel Mr Vladimir Yorikh has sold 15.4989% of Company's shares, citing a Mechel report.
As of December 31, 2005 the Chairman of the Board of Directors Mr Igor Zyuzin directly owned 19.645% of Company's authorized capital, Mr V Yoriikh held 15.498% stake. Conares Holding AG held 24.46%, OOO MetHol 10.344%, Klypso Ltd 14.49%.
Mr V Yorikh and Mr I Zyuzin hold Conares on 50:50 basis. Mr I Zyuzin owns MetHol and Mr V Yorikh controls 99% of Klypso.
Mechel is one of Russia's leading mining and metals companies, uniting producers of coal, iron ore, nickel steel, rolled products, and hardware.
South Korean domestic steel plate stocks increasing
South Korean steel mills steel plate inventories increased by 29,000 tons during February to reach 1.03 million tons at the end of February according to the Korean Iron & Steel Association. The inventory index for steel plates also rose to 172.5 points during February from 167.7 points in January after falling for three straight months. The base month of the index is January 2004, when it was set at 100.
KISA hopes that will change this spring and said The construction industry's seasonal boom between now and May is expected to help lower steel plate inventories.''
Steel plate imports into South Korea also rose to 798,000 tons in February from 714,000 tons the previous month as per KISA. Imports of Japanese steel plates are expected to go up due to rising prices of Chinese steel plates and falling costs of Japanese products, it predicted.
European SS prices recovering
The prices of stainless steel sheet in the European market keep rising on tight supply. Some steel manufacturers were forced to delay orders until July due to the supply situation.
The price of 304 2mm thin sheet rose by 50/ton. In Germany, the March price is around 1,230-1, 280/mt and the spot price is around 1, 400/mt. The price in Italy is currently around 1,350-1,400/mt, while in Spain the price is about 1,100/mt.
ChTPZ sign strategic round billet supply deal with Evraz
It is reported that ChTPZ pipe group has signed a strategic deal with EvrazHolding on billet supplies for seamless tubes by the holding's Nizhny Tagil and Novokuznetsk steel mills up to the end of 2006, citing a press release form ChTPZ. Evraz mills will ship 90,000 tonnes of billets per quarter, which will meet a significant portion of the Group's demand for pipe billets of around 1 million tonnes per year.
ChTPZ also said that it would also continue to work under strategic agreements with other billet suppliers, in particular MMK and Ural Steel
The Luxembourg registered Arkley Capital SA manages the ChTPZ Group's assets. ChTPZ Group includes Chelyabinsk Tube Rolling Plant, Pervouralsk New Pipe Plant, Chelyabinsk Zinc Plant, pipeline bend producer ZAO ChTPZ Integrated Pipe Systems, universal metal trader ZAO MeTriS and scrap recycler ZAO ChTPZ-Meta.
AK Steel gives union workers a new offer
AK Steel presented a counter proposal for locked out workers on Wednesday and workers will now have to decide if they will accept it. A couple of the contract sticking points are AK's interest in cutting back on workers and increasing health care costs. An AK spokesman says the company reiterated Wednesday that the workers can end the lockout at any time by accepting their deal but so far that hasn't happened.
Workers are on their third week without pay and it is starting to take its toll on them. They say despite those responsibilities and no paycheck, their desire to push for what they say they deserve heats up with each day of the lockout. To help make ends meet, 2,400 union employees have filed for unemployment. It will be up to the state to decide in the next nine days if the workers are eligible.
Replacement workers are keeping the mill going.
Gladstone coal terminal upgrading leads to loading delays
The Central Queensland Ports Authority said that upgrading work at its Gladstone coal terminals has led to a blow out in the number of ships waiting to be loaded. The capacity of Gladstone's RG Tanna Coal terminal is being almost doubled to 70 million tonnes, while the Barney Point terminal is also being expanded.
Ports authority CEO Mr Leo Zussino said that a 10 day shutdown for construction work earlier this month has led to loading delays. "After the construction shut and after some fairly high ship arrivals we peaked at 28 ships on the 8th of March," he said. "As of today there are 18 ships at anchor. We hope that we can continue to load at over a million tonne a week and certainly get that ship queue down to where we'd like it to be and that's into single figures."
CST to increase slab dispatches to Dofasco
Brazils CST is looking to raise their slab sales volume to Dofasco. After the acquisition of Dofasco by Arcelor is completed, the two companies will be in the same group. This could see Dofasco raise their purchasing volume from CST.
Dofasco currently buys about 400,000 tons per year from CST out of the 750,000 tons the purchase annually from a variety of suppliers.
CST became a member of Arcelor group in 2005 and Dofasco is going to be the newest of Arcelor group.
Belon to take control of Novaya-2 coal mine in Kemerov
OJSC Belon, a leader in Russia's coal sector, reports that after four months of negotiations with Severstal Resurs it is to take control of operations at the Novaya-2 coal mine located at the Chertinskoye coal deposit in the Kemerovo region.
Severstal-Resurs, the former mine owner, is a managing company for businesses of Severstal, one of Russia's leading steelmakers.
Australia's United Group wins contracts for rolling stocks
Australian infrastructure and industrial services company United Group Ltd announced that its rail business has been awarded over A$125 million of new rolling stock contracts. United Group Rail has won contracts to supply locomotives and wagons to a range of customers, including the state owned Queensland Rail and the world's largest diversified miner BHP Billiton Ltd.
United will build three more 5000 class locomotives for Queensland Rail National's coal haulage operations in the New South Wales Hunter Valley, along with 1,432 bogies for coal haulage in Queensland and another 100 coal wagon hoppers and 200 coal wagon bogies to be built in Taree, NSW.
The company will also build 118 iron ore hoppers and 143 new iron ore wagons for BHP, nine General Electric diesel engines for Rio Tinto Ltd's Pilbara Iron and 25 2-pack well wagons for Freightlink, which operates the Adelaide to Darwin rail link.
Kennametal opens a new facility in Brazil
Kennametal Inc announced the opening of its new manufacturing facility in Industrial District of Indaiatuba in Brazil. It will support Kennametal's custom tooling and engineered components operations. The new facility is an important extension of Kennametal's business in the region and is in line with their strategy to provide services where there is customer demand and to grow in developing economies.
"More than one billion new consumers are coming on line in the emerging economies our global customers are moving rapidly to serve these markets and we are moving just as quickly to serve those customers," commented Mr Carlos Cardoso Kennametal President and CEO. "Our strategy is to grow our market share in some of these geographies, and Brazil is a key market for us. Our presence promotes customer intimacy, shorter lead times, global and local availability, and situates us to gain market share. We have a strong team in Brazil, have seen good growth there and are excited that with our new facility we will be able to offer even better service to our customers in this region and grow faster" he added.
Kennametal started operations in the Brazilian market in 1989. Since then, Kennametal Brazil has tripled its revenue and, with the addition of its new facility, is expected to achieve and exceed growing market demand in the region while continuing to provide a competitive edge for its customers.
Worthington Industries 3Q sales & profit down
Slowing conditions, narrowing margins and accrual adjustments pushed down Worthington Industries Inc's sales and profit in its fiscal third quarter. The Columbus steel processor reported that its profit fell to $19.2 million from a record $33.1 million a year earlier. Sales for the three months ended Feb. 28 sank to $681.5 million from a record $747.4 million in the same quarter last year.
Worthington Industries said sales in its steel processing operation fell 15% from a year earlier to $351.9 million, while sales from its metal framing division dropped by 7% to $179.7 million for the quarter.
"Our third quarter started with a much slower than anticipated December for our steel processing and metal framing segments, and although there was improvement in January and February, the results for the quarter remained short of our goal," CEO Mr John P McConnell said in a release.
VSA asks government to remove hurdles in scrap import
It is reported that hundreds of steel scrap containers are getting stuck at the Hai Phong port because of a decision by the Vietnams Ministry of Natural Resources and Environment according to the Vietnam Steel Association Article 7 of the decision stated several conditions on businesses to import waste steel and many of those have posed several obstacles to importers and manufacturers and they are waiting for consideration by the customs authorities.
It is reported that steel makers adopt the route of scrap import through trading companies due to financial capacity. Environment protection authorities now need to inspect the cargo and certify for clearing by customs resulting in clogging at the port. Instead trading firms can deliver imported scrap to manufacturers warehouse and then the environment protection authorities can inspect.
The Vietnam Steel Association thus has sent a circular to the Ministry of Natural Resources and Environment suggesting amendments to the conditions in Article 7 of Decision 03.
Citic profit up by 13% in 2005
Citic Pacific Ltd, a Chinese state backed company run by the nation's richest man, said profit last year rose 13%, buoyed by gains in its steel and property businesses. Net income climbed to HK$4 billion ($515 million). Sales rose to HK$26.6 billion from HK$22.9 billion. The company said profit at its China steel mills rose by 24%.
The company will spend HK$10 billion this year to expand its steel and property businesses in China, said Mr Yung at a Hong Kong press conference. Of the earmarked investment, HK$5 billion will be spent on property development and HK$3 billion on steel projects, he said.
Citic makes special steel, such as fasteners, ball bearings and metal gears, at plants in the nation's eastern province of Jiangsu and central province of Hubei. Citic agreed to buy 65% of a steel plant in China's northeastern province of Hebei for 1.48 billion yuan ($184 million) in November. The mill has a production capacity of 2 million tons and supplies to the auto component and oil industries.
In addition to steel and property Citic is engaged in several other areas of business including aviation.
Mittal Steel SA open to giving quantity discounts
Evidence submitted in the Competition Tribunal hearing on Mittal Steel SAs pricing to date suggested the steel maker was prepared to discount prices to sectors that could demonstrate they were able to grow as a result.
Tribunal chairman Mr Dave Lewis said that while questioning a witness said that Mittal Steel SA did not give the discounts away easily. However, Mittal Steel SA had shown it was prepared to do this in sectors, such as the automotive, white goods and pipe and tube sectors, where it had been proved they were able to buy greater volumes of steel if discounted.
A report by UBS Investment Research released last week estimates that some of Mittal Steel SA's prices were among the highest in the world at times. The report said it appeared that Mittal Steel SA typically charged more than the price at which the same product could be imported, the import-parity price.
Steel market expert Mr Peter Fish of UK based consultancy MEPS International will be called before the tribunal. Mr Zavareh Rustomjee, a former trade and industry department director-general, and National Association of Automobile Manufacturers of SA director Mr Nico Vermeulen are also scheduled to appear as witnesses during the hearing.
Sidenor rents Velder's rolling mill complex
Bulgarian Sidenor SA via its subsidiary company Dorjan Steel has signed agreement with Velder Import Export Ltd for the renting and exclusive use, with right of future purchase, of its installations in Nikolic Doiran, in Fyrom. The installations include a rolling mill of long products with production capacity of 200.000 tons per year, a production unit for structural mesh with production capacity of 20.000 tons per year and a production unit for lattice girders with production capacity of 10.000 tons per year, as well as warehousing facilities and offices.
Sidenor SA. will immediately proceed with upgrading of the installations, aiming at a significant improvement of productivity and quality of products, while in the future a further upgrade is foreseen, for the production of small profiles and merchant bars.
The unit is forecasted to cover the increased needs for steel construction products in FYROM, Kosovo and Albania. 2008 total sales of SIDENOR are expected to reach 3 million tons from roughly 2 million in 2005, while the consolidated turnover will reach 1.5 billion Euro against 957 million 2005.
