April, 24 2006
MMKs plans for India unclear
MMK chairman Mr Viktor Rashnikov said at a press conference in Magnitogorsk that the company was studying Indian region. Steel consumption has grown 22% in India over the past five years. According to national policy on metallurgical sector development, steel demand in India will grow to 100 million to 110 million tonnes by 2020. In addition, India is rich in iron ore.
Projects in India would enable MMK to strengthen its presence in a region with high economic development potential, Mr Rashnikov said. If metal exports from Russia drop, MMK presence in the area would be guaranteed. "It is too early to talk about any specific agreements or projects. We are looking at integration possibilities on other markets also," he said.
Kalinga Nagar tribals to continue agitation
The agitating tribals of Kalinga Nagar in Orissa, at a meeting earlier this week, resolved to persist with their three and a half months old agitation at all costs. Among the participants at the meeting of the protesters in Kalinga Nagar were retired civil servant Mr KB Saxena, former political science teacher of Delhi University Mr Manoranjan Mohanty and Supreme Court lawyer Mr Prashant Bhushan.
The 106 day road blockade would continue said social activist Mr Rajendra Sarangi. He said "It is a struggle which is important not only because 13 tribals lost their lives but because since then the road leading to the area has been blocked by the tribals for the past 106 days." He said that Initially in 1992 tribals of Kalinga Nagar had welcomed industries. But they learnt a bitter lesson, which by October 2004 led to a situation where they refused to give up their land. In their view, government is incapable of undertaking rehabilitation. In effect, they now want to know what the government's agenda will be.
Mr Mohanty said "The Kalinga Nagar movement and many such movements are against the dominant models of development. People's historic right to the earth is under attack and they are fighting back. It is oppression of the worst order to take away people's land and livelihood in the name of development of a few."
Noted Gandhian Mr Surendra Mohan said he was prepared to sacrifice his non violent ideology for a more militant struggle for the rights of the tribals.
Mr Anoop Saraya, a doctor from AIIMS, said tribals and the vast majority of peasantry could not legally claim compensation as they did not have pattas in their name. He said over 73% tribals did not have any patta.
Steel prices regulator proposal put in abeyance
The proposal for creating a steel sector regulator on the lines of telecom has been put in abeyance for the time being due to lack of consensus. Union steel minister Mr Ram Vilas Paswan told PTI "We were thinking to bring a steel regulator in the lines of the Telecom Regulatory Authority of India, but the matter has been put in abeyance for the time being due to lack of consensus."
"The private steel companies had turned down the idea as the prices had eased partially, so we are not taking the matter forward for the time being. But, we may revive the proposal if we find it necessary in future" Mr Paswan said.
The idea of a regulator was mooted by the government to check the pricing of steel after an unprecedented hike in the price of steel in the recent past. However when the Steel Ministry instructed the Steel Authority of India to reduce prices private steel players had declined to follow suit. The benefit could not reach the consumers as SAIL's market share is below 30% of the total steel production of the country.
De stocking responsible for rising steel prices Mr Sajan Jindal
During a CNBC TV18 interview last week Mr Sajan Jindal Vice Chairman and MD of JSW Steel said that the de stocking took place over the last two quarters is responsible for dwindling of steel stocks, which is fuelling this price hike.
Mr Jindal said that the steel industry in Q4 was quite down because globally the prices were going down. There was a huge de stocking taking place in every part of the world. There was a huge pressure on the prices. Since April1, the whole tide has changed and the entire de stocking which was happening over the last two quarters has actually found people in a surprise situation, where they have no stocks. And, suddenly, they all come to the market with large demands. So the prices of steel is suddenly sky rocketing.
Mr Jindal also expressed worry for not able to meet the demands of the customers.
TATA Steel to begin construction of ferro chrome unit in SA
The construction work on TATA Steels green field ferro chrome project with an investment $120 million at Richards Bay in South Africa is likely to begin from next month and end by last quarter of 2007. Environmental clearance for this 135 million tonne capacity project has been received from South African government recently. TATA Steel is teaming up with TATA Groups holding company in South Africa TATA Africa in 90:10 ratios for the project.
Mr Somadeb Banerjee TATA Steels chief of overseas projects last week said that Over 50% of the funding for the project will be met through equity and shareholders loan and remaining will be raised from overseas financial institutions.
TATA Steel is also actively exploring the possibilities of acquiring chromite ore mines in South Africa. Though the project will depend upon India for import of higher grade raw materials, the higher realization will mitigate the transportation cost. This will also leverage lower freight cost, and develop access to markets in Europe and the US apart from servicing existing South East Asian markets Mr Banerjee said.
According to analysts, the ferro chrome project in South Africa makes sense due to low electricity cost.
TATA Metaliks turnover up by 60% in 2005-06
TATA Metaliks announced that it has recorded a turnover of Rs 504 crore in fiscal 2005-06, an increase of over 60% over the previous year. Profit before tax is Rs 68.79 crore down from Rs 101.72 crore recorded last year. It had a record production of 0.327 million tonnes of hot metal as against 0.176 million tonnes in 2004-05 on account of its two blast furnaces at Kharagpur in West Bengal and another at Redi in Maharashtra.
The company has attributed the decline to an increase in raw material prices and decreasing trend in pig iron prices. It has, however, pointed out that pig iron prices have lately witnessed an upswing.
TATA Metaliks has set a production target of 0.65 million tonnes of hot metal by early 2007-08.
Mr Muthuraman on the board of UNs Global Contact
Mr B Muthuraman MD of TATA Steel and Vice Chairman of Goldman Sachs group Suzanne Nora Johnson are among the 20 business labor and civil society leaders named by the UN to serve on the board of the group set up to advance globalization and fight corruption.
The group called Global Contact was launched six years ago by the UN secretary general Mr Kofi Annan to advance globalization, fight corruption, promote human rights and provide strategic advice to the initiative and its stakeholders. More than 2,500 companies in over 90 countries now are members of the contact along with 50 regional networks.
Maharashtra plans imported coal based power unit near Dabhol
The Maharashtra government is planning to set up a 1500MW imported coal based power plant near the Dabhol plant. This will be in addition to the 4,000 MW ultra mega coastal power projects that are proposed to be set up at Girye in the state.
The plant has been planned near Dabhol so that the existing jetty facility can be used for unloading the imported coal.
The state is planning this move to meet its rising power demand. Maharashtra is facing a power shortage of around 4,500 MW per day leading to load shedding for around 6 to 14 hours a day. After the Girye plant is operational, it will provide power to Maharashtra, Rajasthan, Gujarat, Chhattisgarh and Karnataka.
VISA Steel to sell surplus coke in 2006-07
During an exclusive interview with CNBC - TV18s Mr Vishwambhar Saran MD of VISA Steel about 200,000 tonnes of coke may be sold during the current year after meeting in house demands.
Out of planned capacity of 400,000 tonnes, 100,000 tonnes has already been commissioned in March and remaining 300,000 tonnes will be progressively commissioned during the year as coke batteries need long periods of time to heat up.
Coal ministry prepares scheme for CVL
Coal ministry plans to send a note on CILs overseas arm Coal Videsh Limited formation to the Cabinet soon for approval. CVL will scout for sources of good quality coal both coking coal & thermal, to meet the shortfall in domestic production. Under the scheme prepared for the CVL, it will contribute 10 million tonnes of coal by 2010 and 50 million tonnes by 2020.
CVL will prioritize its operations at two levels. At the first level, it will look for coking coal properties in Australia, Zimbabwe and Mozambique, and thermal coal properties in Indonesia and South Africa. At the second level, CVL will look at equity participation as well as import of coking coal from Russia, Kazakhstan, Canada, Venezuela and Poland. CIL also plans to rope in Steel Authority of India Ltd as a partner in the projects of CVL.
POSCO to increase HR prices and reduce plate prices
POSCO announced on Sunday it is rearranging its steel prices in response to fluctuating international prices and domestic demand and will increase prices HR products and reduce steel plate prices with effect May 1st.
POSCO said that the prices for hot rolled coil will rise by 20,000 won per ton to 470,000 won in the domestic market due to falling inventory levels but prices for steel plate and steel plates for shipbuilding will be reduced by 30,000 won per ton to 620,000 won and 585,000 won, respectively.
POSCO's move follows a price cut by Japanese steelmakers early this month of $100 per ton down to $580 for orders received between April and September. Steel plates account for up to 20 percent of total shipbuilding costs. Despite unfavorable currency rates, POSCO has provided steel plates at least $50 cheaper than the Japanese imports for six consecutive quarters.
Cyclones reduce Rios iron ore output in Q1
It is reported that Rio Tinto lost sales of iron ore for about $300 million in the first quarter as cyclones battered its mines in Western Australia's Pilbara region. In a March quarter production report released Rio declined to reveal exactly how much production was lost due to heavy rains and wind, but the company said it mined about 4 million tonnes less of the steelmaking material than in the previous quarter.
Rio was expanding its Pilbara operations at the same time as the storm arrived and had been expected to report higher production before the cyclones hit.
Thus analysts estimated the real lost production figure was at least 5 million tonnes or about $300 million in sales revenue. Additionally, damage has pushed up the cash costs of mining.
The company was forced to declare force majeure in early March, meaning that due to circumstances beyond its control it was unable to meet its contractual obligations to customers. Rio has not yet lifted the declaration and spokesman Mr Ian Head said the company was still pumping water out of its open pit mines, meaning the lost production will continue into the June quarter. Railway and port closures due to the cyclones also affected operations.
Maanshan to start 5 million tonne plate mill by Q1 of 2007
Maanshan Iron and Steel aims to double its revenue to 80 billion yuan over the next three years by commissioning a new five million tonne thin plate production line. Maanshan city mayor Mr Yao Yuzhou said that Maanshan Steel's revenue will surge to between 60 billion yuan and 80 billion yuan by 2008, compared with 32 billion yuan last year, up by 80% and 150%.
Mr Yao added that "The new five million tonne production line will start production in the first quarter next year, thus lifting the company's total production capacity by 50% to 15 million tonnes in 2007."
Earlier this year, Magang group, the parent company of Maanshan Steel, signed an agreement with Boasteel Group to form a strategic alliance. Mr Yao said "Boasteel Group and Magang Group could benefit in both management and technology through the cooperation."
PSMC Privatization Consortium starts development plan
It is reported that Magnitogorsk Iron & Steel Works together with Al-Tuwairqi and Arif Habib Group have begun developing management principles and development plans for Pakistan Steel Mill Corporation.
The MMK press service cited MMK chairman Mr Viktor Rashnikov as saying "The sale of the 75% stake to the auction winner is not yet complete. But already together with our partners in the consortium we are looking at detailing and agreeing on plans for the further development of PSMC. Management principles for the asset are being worked out. They will be carried out on a joint basis, taking into account the experience, advantages and interests of all sides"
Mr Rashnikov said at a press conference in Magnitogorsk on that MMK is not only interested in maintaining its presence in a key market for the company, but also wants to expand it. Acquiring a company abroad significantly reduces certain risks he said.
NLMK aims to be self sufficient in raw materials by 2009
NLMK CEO Mr Vladimir Nastich said that the company was now 100% self sufficient in iron ore after acquiring shares in miner KMA Ruda this year and had 2 million tonnes a year of iron ore concentrate available for sale to third parties. Stoilensky GOK, in which NLMK acquired shares in 2004 and KMA Ruda supply all of the steel maker's iron concentrate.
NLMK also said it aimed to be self sufficient in coking coal by 2009 by developing its Zhernovskoe-1 deposits in western Siberia and two other assets acquired this year coke plant Altai-Koks and Kuzbass Asset Holdings Ltd, a Gibraltar based firm that owns 100% of Prokopievskugol Coal Co.
Mittal Steel may have to improve bid for Arcelor
Financial analysts have opined that Mittal Steel is coming under increased pressure from fund managers and steel analysts to raise its bid for Arcelor as his effort to acquire it enters a crucial phase. Although Mittal Steel has been adamant he has no plans to raise the offer, a fund manager at one Arcelor shareholder said "I would be shocked if he really meant this." However, most onlookers believe that Mr Mittal, if he has any intention of changing the terms of the offer, would contemplate such a move only after the documents have gone to shareholders.
Mittal Steels team along with their bankers hope to send the bid documents related to the proposed transaction Arcelor shareholders by April 28, when Arcelor holds its annual meeting for shareholders in Luxembourg. Having the documents out in the open would clarify the terms of the bid and would allow a more informed discussion at the meeting by Arcelors shareholders. Mittal Steel's planned date for getting the bid documents to shareholders has already slipped by two to four weeks since early March. Mittal Steel said this has been due to the complexities of the bid linked to the need to have the documents approved by the four stock exchanges in continental Europe where Arcelor's shares are traded.
Some fund managers believe Mittal Steel could make the bid more palatable to investors if he changed the system of voting rights in his company. Under the current proposal for a merged Mittal Steel -Arcelor, Mr Mittal would have twice as many votes as ordinary shareholders, giving him 64% of the voting rights.
Brazilian EBX may not bid for Bolivian El Mutn iron ore project
It is reported that Brazilian steel company EBX Siderrgica will not bid for the El Mutn project in Bolivia. Mr Juan Manuel Arias CEO of EBX's Bolivian subsidiary MMX told "It was announced that MMX is not going to submit the bid because the rules have been changed slightly by the new government. Because of that we don't support the bid anymore," said Arias.
EBX follows Chinese company Shandong Luneng Corp as the second participant to pull out of the bidding process.
Mittal Steel, Jindal Steel and Power of India and Argentina's Siderar are still competing for El Mutn.
The competitors are due to comment on the projects bidding rules and proposed contract on April 28th.
El Mutn is one of the world's largest iron ore deposits, with some 40 billion tonnes of reserves over 60 square kilometers in Santa Cruz with an average content of 50% iron according to official figures.
Chinese coal industry to embrace sustainable development
At a meeting of the Shanxi State Council, presided over by Chinese Premier Mr Wen Jiabao, it was concluded that the coal industry is facing serious challenges in administrative policies, resource management, industrial safety and pollution control, and that it is vital to pursue a more sustainable development. The experimental policies will strengthen the government's administration of the industry and improving the coordination between different regulators to make them more efficient. The threshold for entering the industry shall also be raised.
The policies will try to improve the industry's notorious safety records. Strict enforcement of laws, better management of human resources and the use of more sophisticated equipments and technologies have been identified as major areas of improvement. Other aspects of the policies include the reform of coal mining enterprises to make them more dynamic and responsible to the society, improving the management of coal resources by charging royalties, and establishing a mechanism for restoring the ecological environment of coal mines.
Experiments shall also be carried out to find out how mining enterprises and towns could veer into other industries as their coal resources are running out.
ACIPO upgrades recycling center
American Cast Iron Pipe Company in Birmingham Alabama has completed a $4.5 million upgrade of its recycling division. ACIPCO Recycling has added a new 6,000HP drive motor to replace an older 4,000HP motor on its shredder, which should allow for a 15% increase in the companys processing capacity. ACIPCO has also added sound reducing enclosures around its equipment.
Mr Van Richey president and CEO of ACIPCO said The upgrades will allow us to continue to be the largest and most convenient recycling facility in Alabama. We are committed to taking old cars and appliances that could end up in one of Alabamas 42 landfills or dumped illegally in neighborhoods and turning that metal into something of value pipe that provides clean water in the United States and around the world.
Founded in 1905, ACIPCO manufactures a diversified product line for the waterworks, capital goods and energy industries. Products include ductile iron pipe and fittings, ductile iron castings, fire hydrants, valves, fire truck pumps, centrifugally cast steel tubes, static steel castings, fabricated assemblies, ERW steel pipe and spiral welded steel pipe. ACIPCO facilities are also located in Alabaster in Alabama, Columbia in South Carolina, Beaumont in Texas, St Paul in Minnesota, Phoenix in Arizona and Pryor in Oklahoma.
Chaparral expands sheet piling product range
Chaparral Steel Company has announced the successful production of its PZC 26 sheet piling product at its Virginia steel facility.
Mr Stan Baucum director of sales & engineered products said "This product is one of the two most widely demanded Z piling products in North America and Europe, and Chaparral Steel is the only domestic producer. It enhances our product range and is a platform for continued growth in both the domestic and international sheet piling markets."
Chaparral Steel Company, headquartered in Midlothian in Texas, is the second largest producer of structural steel beams in North America. The Company is also a significant supplier of steel bar products. In addition, Chaparral is a leading North American recycling company.
Insteel to exit the industrial wire business in Virginia
Insteel Industries Inc announced that subsequent to the end of the second quarter, it determined that it would exit the industrial wire business and proceed with the closure of its Fredericksburg, Virginia manufacturing facility.
Based on the weakening in the business outlook for the facility and the expected continuation of difficult market conditions and reduced operating levels, the Company concluded that the closure of the plant and sale of its assets would be the best course of action. The Company expects to complete the closure of the plant during its third quarter ending July 1, 2006.
Mr HO Woltz III Insteel's president and CEO said "In spite of the hard work and dedication of our people, our efforts to improve the operating rate and financial performance of the Virginia facility have been unsuccessful and the prospects for improving market conditions do not justify continued operations. Our focus at this point is on assisting our people with the transition process and winding down the facility in an orderly fashion"
Mr LN Mittal is UK's richest person Sunday Times
The Sunday Times Rich List has revealed that Steel magnate Mr LN Mittal's 14.8 billion fortune has made him Britain's wealthiest ever person.
Russian entrepreneur and Chelsea Football Club owner Mr Roman Abramovich is second in the list with a 10.8 billion fortune. Mr Abramovich was rumored to be buying a stake in Russian steel major Evraz recently.
POSCO to increase SS prices wef May 3rd
POSCO has announce that the prices of SS 300 series hot rolled and cold rolled products will each rise by 200,000 won to 2.42 million won and 2.69 million won per ton wef May 3rd. It is the second time the steelmaker has raised prices since February when the price of 300 series products went up by 200,000 won due to a global increase in the prices of nickel and stainless steel products.
The price of the 400 series products will increase by 50,000 won each to 1.1 million won and 1.48 million won.
The price increase is largely due to the rising price of nickel, which takes up more than 80% of stainless production costs. Nickel soared 24.5% since the last stainless price increase in late February to around $18,550 per ton on the benchmark London Metal Exchange.
Other smaller cold-rolled steelmakers such as Hyundai Steel Co., BNG Steel Co and Taihan Electric Wire Co. are expected to raise prices as well.
Aztec Resources signs Koolan mining agreement
A landmark agreement has been signed between the traditional owners of Koolan Island and mining company Aztec Resources to re-open iron ore mining on the remote Kimberley Island, north of Derby. The Koolan Island mine, off the Kimberley coast 130 kilometers north of Derby, was operated by BHP between 1965 and 1993 producing 68 million tonnes of iron ore.
The agreement includes provision for the protection of sites of significance and the involvement of traditional owners in environmental decisions. Under the agreement, Aztec will provide monetary payments and shares to a charitable trust established for the traditional owners. On the closure of the mine the traditional owners will have the option to purchase the mine's buildings at a nominal fee.
Mr Wayne Bergmann ED of the Kimberley Land Council said the agreement set a new benchmark for the Kimberley and delivered a range of benefits to the Dambima-Ngardi Traditional Owners and other indigenous people of the region. The Dambima-Ngardi people have asserted Native Title rights over nearly 28,000 sq km of land and sea north of Derby, including Koolan Island. Mr Wayne said that "Aztec and the Dambima-Ngardi people have negotiated with good will, and now some of the wealth generated from Koolan Island will stay here in the Kimberley."
Aztec acquired sole control of the island in 2000 and began exploration in 2004. The company proposed recommencing mining operations on Koolan Island in March 2005 and approached the Kimberley Land Council in an attempt to broker a deal with the traditional owners. Construction of the mine is expected to begin later this month. The new mine is expected to last nine years and to produce four million tonnes of high grade iron ore every year. Ongoing exploration is expected to identify more resources on the island.
Aztec has buyers in Japan and China, who are reported to have committed to take expected high grade ore output.
NLMK eying steel rolling assets in US
One of Russia's most profitable steel makers NLMK wants to buy steel rolling assets in the United States and elsewhere, but will not acquire minority stakes in firms, including Arcelor a company official said during last week. NLMK is seeking to buy downstream steel assets near its main markets after becoming self sufficient in iron ore supply.
NLMKs deputy CEO External Relations Mr Anton Bazulev said We are looking at re rolling assets in our key markets. The US market is a large market for steel and we are currently looking at this market as a possible target for mergers and acquisitions."
NLMK, Russia's third largest steel maker by output, bought Denmark's Dansteel plant in January for $104 million.
Wheeling-Pitt suitors have different strategies
The possible business strategies of CSN and Esmark, who have reportedly made bids to purchase Wheeling-Pittsburgh Steel Corp may be differing entirely.
A buyout by CSN might result in Wheeling-Pitt hot end layoffs because CSN would not be as dependent on the Wheeling-Pitt facilities to manufacture steel. CSN would be able to use Wheeling-Pitts coating and finishing operations for the raw steel it made in Brazil.
Esmark, on the other hand, may be looking to purchase Wheeling-Pitt so the young distributor can have an in-house manufacturer to purchase raw steel at cost.
Expert differ on benefits of steel industry consolidation
Many global steel companies and their shareholders are pinning their hopes for control over steel prices on consolidation, but consolidation would not necessarily turn steel companies from price takers into price makers.
Contrary to popular belief that consolidation of steel industry would lessen the price erosion tendencies by smaller players, during a testimony in South Africas Competition Tribunals hearing on Mittal Steel SAs alleged excessive pricing Mr Philip Tomlinson of CRU International, told the tribunal that prices had not necessarily improved in markets such as Europe and the US, where there had already been significant consolidation. Consolidation had to achieve a smaller number of considerably larger companies in order to give steel companies greater influence over prices Mr Tomlinson said.
He also said barriers to consolidation in China were likely to put a drag on the trend. While the rest of the global steel industry is playing consolidation games, China holds the key Mr Tomlinson said. This meant that China would become the dominant factor in the industry in the next few years. And this, in turn, implied that the worlds biggest producers would then be wholly or partly Chinese owned, he said. Consolidation in China needed to be successful if effective global consolidation was to take place.
However another steel expert witness Mr Peter Fish of UK based MEPS was more optimistic about consolidation benefits, saying it had already improved steel makers ability to influence global steel prices. The industry could now manage its production levels thanks to major consolidation around the world. This has limited the degree of competition in the market through privatization, mergers and acquisitions in the steel manufacturing sector. Mr Fish said steel companies were quick to adjust their prices and output control. Without consolidation, it is unlikely that recent price levels would have been achieved.
Mandalong coal mine opens
The Mandalong underground coal mine near Morisset in the Hunter Valley was recently opened. The Mandalong mine will supply up to 3.3 million tonnes of thermal coal to Vales Point and Eraring power stations each year.
In 2004-05 NSW produced over 120 million tonnes of saleable coal valued around $7 billion dollars. It also exported more than 86 million tonnes of coal, worth over $5.5 billion dollars.
Romanian GDP growth pegged at 5.2% in 2006 by IMF
Romania's gross domestic product growth should be 5.2% during 2006 and will increase to 5.6% in 2007 to 5.6 percent, according to estimates in the biannual report issued on by the International Monetary Fund.
IMF's forecast regarding the evolution of the GDP for the current year is similar to last year's 5.5% increase estimate, but under the 6% estimate of the Romanian authorities.
Romania reported a 4.1% economic increase in 2005, down compared with the 8.4% increase registered in 2004.
Ajaokutas billet mill commences production
It is reported that the billet mill of GSHLs Nigeria based Ajaokuta Steel Company has commenced production. ASC MD said that the rehabilitation of all the plants in the company had reached 85% and ASC as started producing at 60% capacity.
ASC MD however said that the non completion of rail lines for bringing raw materials to the company further progress is hindered.
Scrap explosion in Lahores scrap market kills 1
It is reported in a local daily that one man died and two others were severely injured on Sunday noon in a mortar shell blast in the largest scrap market Misri Shah in Lahore in Pakistan. It is said that laborers were scavenging the scrap and when one of them struck a live mortar shell with a hammer the shell exploded.
Situated in the heart of Lahore, the scrap market is essentially a source of raw material for the Pakistans expanding steel industry. Incidents of exploding live shells in scrap markets are a common occurrence, and frequently result in injuries to people nearby. A laborer was killed and several injured in a similar incident a few months ago.
A scrap dealer said We get regular supplies of weapon pieces cut into sheets from Afghanistan. He said that Russian weapons, first captured by the Afghan mujahideen and later by the Taliban from the Soviet and Northern Alliance armies, were the most sought after items in the market because of the high quality steel used in them. Weapons for use as scrap started pouring into Pakistan in 1982, when the war between the mujahideen and Afghanistans Soviet occupiers was at its peak.
Sembule Steel increases hallow section tubes
Ugandas Sembule Steel Mills is re launching its hallow section steel tubes set to replace timber and it will be in position to satisfy high domestic demand as that production has increased to over 60 tonnes up from 40 tonnes of tubes every day. The company would also focus on exports to Rwanda, Burundi, DR Congo and Southern Sudan.
Hallow steel tubes are in three shapes round, rectangular, and square and can be used for furniture fabrication, wheel barrows, burglars proof, truck bodies, doors, windows and gates among others.
Sembule Steel produces a range of other products including wire mesh, barbed wire and sheets among others.
