April, 07 2006
Bharat Coking Coal clocks profit for first time
Coal India Limited subsidiary Bharat Coking Coal Limited has reported profit for the first time in history during 2005-06 since its inception in 1971.BCCL CMD Mr P S Bhattacharya told that the company has earned a profit of Rs 156.11 crore during the period, taking into account the impact of wage revision under the National Coal Wage Agreement -VII. Mr Bhattacharya said BCCL was hopeful of wiping out accumulated losses of Rs 7,044 crore by the year 2011-12. During the previous fiscal, BCCL had reported a loss of Rs 959.43 crore.
Gross sales of the company during 2005-06 stood at Rs 3,514.48 crore as compared to Rs 2,884.10 crore during 2004-05.
With production target pegged at 24.2 million tonne for the current year, BCCL would also make investments on worn out assets under a revival plan prepared for the company. Mr Bhattacharya also said BCCL planned to develop a coking coal block in Kapuriah near Jharia along with another partner.
KCI Konecranes to supply 4 SMS cranes to Bhushan Steel & Strips
Bhushan Steel & Strips Ltd has ordered four hot metal ladle cranes from KCI Konecranes for its steel project at Orissa. The first crane will be delivered in January 2007 and the rest throughout the year. The value of the order is over Euro 10 million.
The new cranes, which are rated for 305 tons process duty and 375 tons for maintenance lift, are specified for the highest duty class and comply with the most stringent safety standards. The cranes span over 33 meters and are equipped with four girders and auxiliary trolleys with an 85/15 ton lifting capacity. The cranes have air conditioned E-rooms and feature KCI Konecranes' patented DynA common DC-bus inverter control technology with DynAReg Active Front End and the DynAPilot anti sway system with positioning control. These features are electromechanical and provide the customer with safe and efficient.
Mr Kari Wallgren, Director of Process Cranes said "We have provided cranes to the Indian market since the early 1990's.Bhushan Steel & Strips is a new customer to KCI Konecranes and will further add to our activities in India."
Mr Neeraj Singal MD of BSSL said that "We selected KCI Konecranes' technology for our new plant because of their high performance solutions and a track record of high reliability in steel mill crane deliveries to leading players such as Nucor in the US and Essar Steel in India."
KCI Konecranes is a world leading crane technology and service company. The product range includes light crane systems, heavy duty cranes for process industries and shipyards, special harbor cranes for bulk materials and containers. Other recent large steel mill crane orders during 2005 for KCI Konecranes include orders from Mittal Steel in Poland, SeverCorr LLC in the US, Magnitogorsk Iron & Steel Works and West Siberian Iron & Steel Plant in Russia.
CMPDI improves drilling record by 5.3% in 2005-06
The Central Mine Planning & Design Institute has carried out 192,296 meter drilling against the target of 192,000 meter during 2005-06, an increase of 5.3 per cent from last year and prepared 14 reports for additional coal reserves of about 2.5 billion tones for project implementation. A total of 264 reports of CIL 30 project reports, 62 environmental management plans and 12 operational plans were also prepared.
Detailed geological surveys and preparation of bankable detailed feasibility report were submitted for two new coal mines in Sinamatella Coalfield and western area for Zimbabwe Power Company, the release said.
Established in 1975 as a subsidiary of Coal India Limited, the CMPDI completed consultancy jobs worth Rs 5.5 crore in mine planning, environment management, coal bed methane, master planning, and geophysical survey for 16 organizations this fiscal. A multi-disciplinary organization, the CMPDI renders consultancy services to a host of clients inland and abroad that include the United Nations Agencies and International Financial Institutes.
Mumbai Port handles record cargo in 2005-06
According to a press release issued by the Mumbai Port Trust, it has handled 44.19 million tonnes of cargo during 2005-06 to exceed Ministry of Shippings target of 39.2 million tonnes by 4.99 million tonnes. This comprised 26.87 million tonnes of imports and 17.32 million tonnes of export cargo. This is the highest ever cargo throughput handled by the port in its 132 year history with previous best record of 35.19 million tonnes in 2004-05.
According to the release, the quantum jump in the Port traffic was achieved mainly due to the various measures taken to improve productivity and reduce costs to the ultimate Port users, proactive response to customer requirements.
Man Industries to use part of GDR fund to increase capacity
Man Industries Limited, which has issued global depository receipt at Dubai International Financial Exchange, will use the raised amount of Rs 157 crore for refurbishing its capacity and as long term working capital. About Rs 30 crore will be invested to add balancing equipment at the facility in Anjar, Gujarat and the rest will be used to build up our net worth said Mr D Datar VP corporate of MIL.
Man Industries, the flagship company of the UK based Man Group, is involved in the manufacture and supply of steel line pipes for high and medium pressure applications such as oil, gas, petrochemicals and water transportation. Two of MILs four plants at Anjar facility produce longitudinal and helically saw pipes with capacities of 250,000 tonne and 90,000 tonne a year respectively. The facility also includes a coating plant and a 5MW captive power plant. The company has a second facility near Indore with a 135,000 tonne a year longitudinal saw pipe mill and a coating plant.
SECL produces 83 million ton of coal in 2005-06
Chhattisgarh based subsidiary of Coal India Limited, South Eastern Coalfields Limited has reported that its mines have produced 83.024 million tonnes of coal during 2005-06 surpassing the target of 83 million tonnes and setting an all time high record of production by any single company in the country.
Mr MK Thapar CMD of SECL said that SECL had been setting new standards in coal production for years and also dispatched higher volume of coal in the current financial year. The credit for record production in the year 2005-06 should go the entire team specially mentioning the functional directors and the coal miners CMD said.
SEL has been steadily increasing production every year and has produced 66.6 million tonnes in 2002-03, 71 million tonnes in 2003-04 and 78.55 million tonnes in 2004-05.
Monnet Ispat change name to become Monnet Ispat & Energy Ltd
Monnet Ispat Ltd has informed BSE that the Company has obtained the requisite approvals from the shareholder and Central Government for changing the name and consequent thereto the name of the Company stands changed from "Monnet Ispat Ltd" to "Monnet Ispat & Energy Ltd".
TopIron ore smuggling from Orissa to Jharkhand
Orissas Minister of Steel and Mines Mr Padmanabha Behera on admitted that iron ore is being smuggled out of Keonjhar district into Jharkhand on a large scale and informed state assembly that 44 truckloads of iron ore were seized during the last two years.
He said the Government is contemplating a State level flying squad to check smuggling.
Chinese steel output regains momentum in February after 8 months
China's steel output, which has been falling since last May due to the government's macro control policy, saw a 21.7% monthly rise to 31.82 million tons in February. Figures from the National Bureau of Statistics showed China's output of steel products was 26.11 million tons and 25.37 million tons in January and February 2005 up by 25.4% and 14.7% YOY respectively and reached a peak of 35.5% in May but growth gradually dropped to 17.4% in December.
Daily steel output hit a record 1.1365 million tons in February this year, compared with 906,000 tons in the same month last year. The growth rate was 4.3% points higher than the same period of last year, according to a report in the China Securities Journal.
Mr He Xiaoying, an analyst with the Pricing Monitoring Center of the National Development and Reform Commission said the revival of the steel market and price hike at the beginning of this year contributed to the increase.
Mr Lu Qin, a researcher with the Shiji Securities Research Institute, attributed the quick recovery of China's steel production to the operation of a batch of steel projects in the later half of 2005 and overcapacity in the sector.
US ITC makes determinations in sunset review for seamless tubes imports
The US International Trade Commission announced its determinations in its five year sunset reviews concerning carbon and alloy seamless standard, line and pressure pipe from the Czech Republic, Japan, Mexico, Romania, and South Africa. The Commission determined that revoking the existing antidumping duty orders on imports of small diameter carbon and alloy seamless standard, line and pressure pipe from Japan and Romania and large diameter carbon and alloy seamless standard, line and pressure pipe from Japan would be likely to lead to continuation or recurrence of material injury within a reasonably foreseeable time.
It further determined that revoking the existing antidumping duty orders on imports of small diameter carbon and alloy seamless standard, line and pressure pipe from the Czech Republic and South Africa and large diameter carbon and alloy seamless standard, line and pressure pipe from Mexico would not be likely to lead to continuation or recurrent of material injury within a reasonably foreseeable time.
As a result of the Commission's affirmative determinations and Commerce's recent affirmative findings, the existing orders on imports of small diameter carbon and alloy seamless standard, line and pressure pipe from Japan and Romania and large diameter carbon and alloy seamless standard, line and pressure pipe from Japan will remain in place.
As a result of the Commission's negative determinations, the existing orders on imports of small diameter carbon and alloy seamless standard, line and pressure pipe from the Czech Republic and South Africa and large diameter carbon and alloy seamless standard, line, and pressure pipe from Mexico will be revoked.
The five year sunset reviews concerning Carbon and Alloy Seamless Standard, Line, and Pressure Pipe from the Czech Republic, Japan, Mexico, Romania and South Africa were instituted on May 2, 2005.
France's Vallourec denies bid rumor
French steel tubes maker Vallourec said that it had not received any takeover bid and cast doubt on market rumors of a possible bid from US oil giant Exxon Mobil. "We have not received any offer from anyone" a spokesman said. Regarding the rumored bid interest from Exxon, he said "It seems a very unlikely rumor to us."
Shares in the French company, which is a supplier to the oil industry, rose as much 10.2 percent on Thursday, with more than 2% of its capital changing hands. Any bid for Vallourec would likely be worth at least 9.7 billion euros ($11.9 billion), which is its current market value. Shares in Vallourec have been on a near vertical climb since the beginning of 2005 on the back of an oil industry drilling boom caused by high crude prices.
An Exxon spokesman said, "We don't comment on market rumors or speculation on our future business decisions".
SMS group increases order intake, sales and profit
Exceptional boom in metallurgical plant construction has resulted in exceptional results for SMS group during 2005. The order intake increased to Euro 2.811 billion 23% up over Euro 2.282 billion in 2004 and its sales increased to Euro 2.334 billion over Euro 2.170 billion in 2004. Year 2005 closed with a group result of Euro 42 million, with debit amounts from the purchase of the 28% share Siemens AG previously held in the SMS subsidiary SMS Demag AG already factored in the 2005 result.
The orders of Euro 1.782 billion came from Metallurgical Plant and Rolling Mill Technology, Euro 572 million from Tube, Long Product and Forging Technology and Euro 457 million from Plastics Technology. 42 % of the order intake was achieved in Europe, 22 % in North and South America and around 34 % in Asia.
SMS Group Chairman Dr Heinrich Weiss said Today, the increased demands made on us as a technology partner of our customers can only be met if we not only supply machinery and plants, but also offer a seamless understanding of the production processes. This requires extensive system expertise including electrical and automation systems as well as service for our plants. Therefore we are continuing to expand these areas.
Dr Heinrich Weiss expects a high order intake once again for the current business year of 2006, and an even better operative result than previous year. Dr Heinrich Weiss said Considering forecasts for a stable global economic development, the special boom in metallurgical plant construction and the expansion of our range of products and services, we expect the current business year once again to produce an even better operative result than last year.
SMS GmbH is the holding of a group of companies internationally active in plant construction and mechanical engineering relating to the processing of steel, non-ferrous metals and plastics. The group is divided into the Business Areas of Metallurgical Plant and Rolling Mill Technology, Tube, Long Product and Forging Technology and Plastics Technology.
Luxembourg drops takeover law change
Luxembourg has dropped a proposed change in its takeover laws that would have helped Arcelor to fend off Mittal Steel's takeover bid. A committee in Luxembourg's parliament on Thursday scrapped the proposed controversial amendment to the country's takeover laws, finance committee head Mr Laurent Mosar told Reuters.
The amendment, proposed by the committee last month, would have prevented companies resubmitting acquisition bids for 12 months after the failure or withdrawal of a previous bid. That would have meant that Mittal Steel could not change the terms of an offer after an expiry period, as is the practice in other countries.
Rio Tintos shipments effected due to cyclones
Hit by one of the most severe Australian cyclone seasons in recent years, Rio Tinto PLC announced that it has told customers to expect delays and shortages to iron ore shipments. It is reported that Rio Tinto has issued new force majeure declarations on its two iron ore units after tropical cyclone Glenda added to previous cyclones that brought rain and flooded some mining operations. "We are saying that tonnage and timing of shipments will be impacted," a Rio Tinto spokeswoman told Dow Jones Newswires. She wouldn't comment on how much production may be lost, with some estimates that it could be about five million or six million tons. "Rail and mining operations are continuing at a reduced capacity due to the cumulative effects of previous cyclones," the Perth-based spokeswoman said.
Analysts say the severe cyclone season is likely to have an impact on quarterly production figures Rio Tinto, Woodside and Santos. "The intensity and regularity of the cyclones make this one of the worst seasons in recent years," said Gavin Wendt, an analyst at investment research firm Fat Prophets. "It seems that as soon as producers recover from one cyclone they have to prepare for another."
With a new cyclone, Hubert, expected to hit Australia's northwest coast this weekend miners are bracing for more rain and production problems. Rio Tinto has stopped loading iron ore at its Cape Lambert and Dampier Ports in the Pilbara region of Western Australia.
MEPS forecast for North American carbon steel prices
Despite the small improvement in the average figure in March, MEPS expect flat product prices to hold up next month before falling under the pressure from imports over the next four to six months. MEPS do not anticipate a price collapse but a steady decline in transaction values is a distinct possibility over the period.
MEPS expect average figures to stabilize in the final quarter of 2006 and into the first trimester of 2007 and end the forecast time frame marginally above our previous prediction. The import pressure should ease somewhat as domestic demand improves in other parts of the world.
The North American long products sector remains quite fragile. The threat from imports is likely to be realized in the next few months. Despite improving demand as the construction season develops, MEPS expect foreign material to adversely affect prices up to the end of this year. The impact will not be dramatic but is likely to be real. The Canadian market could be worse hit than the US.
Mongolia offers Tavan Tolgoy coal deposit to Russia in return to road cooepration
It is reported that Mongolian Transport Minister Mr Tsegmed Tsengel during his recent visit to Russia offered the title of Tavan Tolgoy, the biggest coal deposit of Mongolia, in exchange for participating in 1500 kilometers road making in Magnolia.
Tavan Tolgoy, 250 kilometers from Chinese border, has 5 billion tons to 6 billion tons in coal reserves worth at least $300 billion. High coking coal accounts for roughly 40% of them. The license is held by Mongolian Energy Resources.
Tavan Tolgoy could be the world biggest coal deposit and Russian companies have been trying to get the right for its development for several years but thus far the Mongols have always avoided direct talks. Severstal is tipped as the top applicant for Tavan Tolgoy as Severstal and Zarubezhgeologia had applied to Mongolian government seeking the interest in Tavan Tolgoys development during last November.
IC2 Global identifies 48 million tonnes of iron Ore at Mt Magnet
Up to 48 million tonnes of iron ore could be targeted for drilling in the Mt Magnet area of Western Australia by IC2 Global Limited according to an independent expert's report released. The report, by independent expert Mr John Wyatt, suggests that the quantity of iron ore could be doubled if drilling extended to a depth of 100 meters at the Company's Victory Bore project 600 kilometers northwest of Perth.
The study identified a target exploration tonnage of between 30-48 million tonnes of iron ore following an assessment of Victory Bore's Rotary Air Blast and diamond reconnaissance drilling data which returned a best value of 49 m grading 34.4% Fe2O3.
"It is believed that using a total strike length of 6,000 meter for its two magnetite rich horizons, a mineralized width of between 25 to 40 meters, an initial mining depth of 50 meters and a specific gravity of 4, we have up to 48 million tonnes of iron ore for further exploration, drill out and development work," IC2 Global's CEO Mr Rodger Johnston said. "If mining at Victory Bore was carried out to a depth of 100 meters, the study found the exploration tonnage could double," Mr Johnston said. "The results are highly encouraging for our first foray into the iron ore sector" he added.
IC2 Global has entered an option agreement to farm into up to 100% of Victory Bore, a magnetite iron ore project 600 kilometers northeast of Perth and 100 kilometers southeast of Mount Magnet. The project, which lies within the East Murchison Mineral Field, also has potential for gold and vanadium deposits.
MMK reports 7.4% increase in production in first quarter
Magnotogorsk Iron and Steel Works have increased steel production in the first quarter to 2.68 million tonnes recording an increase of 8.2% over Q1 of 2005.
An MMK statement said the company's steel output had expanded by 7.4%YOY and stood at 2.89 million tons in the January to March period. Pig iron output rose by 9% to 2.44 million tons it said.
MMK is the largest iron and steel works company in Russia, producing almost 20% of Russian steel products.
MacArthur Coal seeks steel mill as partners for coal mining
It is reported that MacArthur Coal Ltd CEO Mr Ken Talbot told the Melbourne Mining Club that a whole range of companies were looking to Australia for raw material supplies and his company is poised to take advantage of the foreign interest.
MacArthur has nine new development projects on its books Mr Talbot said. Its preference is to take on partners that are end users of coal, with a preference for the miner to retain as much as a 75% interest, the Age says.
Chinese state owned investment company CITIC, which has been a partner in MacArthur's Queensland mines, as well as being an investor, is the natural partner in any new ventures, but if there are other parties, MacArthur would be happy to hold talks Mr Talbot is reported to have said.
EU may impose tariffs ion Russian steel pies
Russian Vedomosti reported that the European Union may impose tariffs of up to 36% on Russian makers of steel pipes in June citing an unidentified person in the EU's executive commission.
It has reported that Trubnaya Metallurgicheskaya Kompaniya TMK, the world's second largest maker of steel pipes, faces tariffs of 36% and the Chelyabinsk Pipe Works could be hit with 24%. The companies can still appeal, the newspaper said.
The tariffs could also affect companies in Ukraine, Croatia and Romania.
Mittal Steel SA commissions water treatment plant in Gauteng
Mittal Steel SA has launched a main water treatment plant in Vanderbijlpark in Gauteng to reduce the negative impact of steel production on the environment. This plant is a labyrinth of pipes and complicated machinery and is seen as one of the most expensive water filtering systems in the world.
Water is essential for the production of steel and Mittal Steel SA gets it from either the Vaal River or the Vaal dam. In the past, water used in the production process was released into the environment. But now, it can be purified and recycled and it will not leave the plant.
Mr Davinder Chugh CEO of Mittal Steel SA said "We have a policy of distributing only one third of our profits to shareholders. The rest of it is ploughed back into the company or into society. What we are seeing here today is a water treatment plant and acquiring this zero affluent discharge facility status."
Later in the year, the company will announce similar plans to contain harmful gas omissions.
Japan's special steel demand to drop in April to June quarter
Japanese demand of hot rolled special steel products in April to June quarter of 2006 will decrease by 1.8% from the previous quarter and 2.4% from the same period last year to averaged 1.6822 million tonnes according to an outlook by Ministry of Economy, Trade and Industry.
The domestic demand would decrease from that during January to March quarter when automobile and other manufacturers reduce the output after the demand season ends in March.
The demand for export would decrease by 10% or more for high tensile steel, which is major export products in special steel, due to lower building and other projects compared with January to March quarter while the export demand increases for tool steel, structural steel and stainless flat steel with better inventory position of users in Southeast Asia and other offshore countries.
Alpha Natural to acquire coal mines from Progress Energy
Alpha Natural Resources Inc announced that is has agreed to acquire the stocks of Diamond May Coal Co and Progress Land Corp and the assets of Kentucky May Coal Co Inc from Progress Fuels Corp, a subsidiary of Raleigh in North Carolina based Progress Energy. The operations to be acquired are adjacent to Alpha's Enterprise business unit and will be integrated with Enterprise. Alpha will pay approximately $23 million plus an adjustment for working capital at closing, and will assume $8 million in reclamation liabilities. Alpha plans to use its existing revolving credit facility to finance the transaction.
Diamond May operates two surface and two underground mines in Kentucky. Production in 2005 was approximately three million tons of steam coal. Diamond May controls an estimated 55.5 million tons of proven and probable surface and underground reserves, including the undeveloped Elkhorn 2 blocks of more than 35 million tons. Diamond May also operates a 700 ton-per-hour preparation plant and load out facility on the CSX railroad. Kentucky May Coal Co. owns an estimated 17.8 million tons of proven and probable underground reserves, most of which are high in Btu content and low in sulfur. It has no current active mines.
"This acquisition will more than double our reserve base in eastern Kentucky" said Mr Michael J Quillen Alpha's president and CEO. "What we learned from acquiring and quickly integrating the Callaway coal operations last October will help us with Progress. Like Callaway, these are the type of operations that meet our acquisition criteria, and they should benefit from being managed by one of our best business units, Enterprise."
Alpha Natural Resources is a leading producer of high quality Appalachian coal. Approximately 92% of the company's reserve base is high Btu coal and 89% is low sulfur, qualities that are in high demand among electric utilities which use steam coal. Alpha is also one of the nation's largest producers and exporters of metallurgical coal, a key ingredient in steel manufacturing. Alpha and its subsidiaries currently operate mining complexes in four states, consisting of 69 mines feeding 11 coal preparation and blending plants.
Stemcor chairman on Kremikovtzi board
It is reported that the shareholders of Bulgaria's Kremikovtzi have elected Mr Ralph Oppenheimer executive chairman of Stemcor on the supervisory board of the Sofia based metallurgical plant.
India's Global Steel Holdings acquired the majority stake in the plant last year from Finmetal. It was reported earlier that Stemcor has offered to buy 25.29% stake in Kremikovtzi still held by the Bulgaria state in February.
Belarus grants duty exemption to BMZ for seamless tube machinery
Belarus has lifted customs duty and VAT on equipment to be imported to build a mill to produce seamless pipes at the state owned Belarussian Metals Plant during 2006-2007.
BMZ said that Belarussian President Mr Alexander Lukashenko had signed a decree lifting the duty and tax on April 4. Goods imported in accordance with contracts signed between BMZ and Germany's SMS Meer on April 30, 2005 and DOST Industrieconsulting GmbH on August 24, 2005 will be exempt from the import duty and VAT.
BMZ plans to commission the mill, capacity 250,000 tonnes of seamless tubes per year, at a cost of $208.6 million in 2007.
Japans Q2 ferrochrome term price up to 75.25 cents
The term price for ferro chrome between a top Japanese stainless steel maker Nippon Steel & Sumikin Stainless Steel Corp and the South African suppliers Xstrata Plc and Samancor Chrome has been set at 75.25 cents a pound for April to June up by 7.25 cents from the previous quarter.
The price rise was the first since the same quarter last year and followed a 7 percent reduction to 68 cents for the first quarter. It was the largest QOQ rise since the price to Japan was increased 12 cents to 74 cents in the April to June quarter in 2004.
NSSC and the SA suppliers conduct a review each quarter to set a term price for Japan. An official of NSSC said South African producers had sought a big rise in the term price due to the firmness in the rand, which has forced producers to reduce production. South African producers pay local costs like power and wages in the rand but are paid in dollars for their ferro-chrome, meaning they receive fewer rand per dollar when the local currency strengthens in relation to the US currency.
On Friday, the term price for European consumers in the second quarter was settled at 70 cents, also up by 7.25 cents from first quarter levels.
Usiminas to increase domestic sales to meet strong demand
Mr Idalino Coelho Ferreira domestic sales director of Brazilian steelmaker Usiminas during a meeting promoted by the Brazilian association for metallic construction informed that the company plans to increase domestic sales during 2006 over 2005 levels. He said that domestic sales share could reach 69% this year as against 67% in 2005 and 72% in 2004. Mr Ferreira hopes that the domestic sales share could further expand depending on strong domestic demand in Brazil driven by lower interest rates and presidential elections.
Mr Ferreira also expects that total sales during 2006 would increase to 7.8 million tonnes as against 7.3 million tonnes in 2005.
Usiminas reported a record 3.92 billion reais ($1.84 billion) in net income during 2005 up by 30% over 2004, while net revenue grew by 7% to 13 billion reais. Usiminas together with subsidiary Cosipa has installed capacity of 9.5 million tonnes.
Consolidated Thompson-Lundmark plans major iron ore mine
Consolidated Thompson-Lundmark Gold Mines Ltd intends to open a major new iron mine in northern Quebec by late 2008, producing five million tonnes a year of high quality ore concentrate. Chairman Mr Brian Tobin told that the project at Bloom Lake, at the south end of the Labrador Trough 900 kilometers north of Montreal would probably be the lowest cost producer in Canada.
Bloom Lake's pre-production costs are estimated at $165.4 million, and Mr Tobin cited a great deal of interest among lenders and investors, including unspecified 'other players in the steel industry, among them Chinese steelmakers. Financing announcements will come later this year, with 50% to 60% of the funding likely to come from debt and the rest in new equity.
CEO Mr Richard Quesnel said that ''We have an opportunity to develop this mine on a fast track,'' he said, with a schedule of 33 months including permitting and construction until production in final quarter of 2008. Boom Lake's estimated 580 million tonnes of pit reserves contain few impurities and will produce concentrate at 66% purity that will be very attractive to steel mills in Europe, certainly very attractive to steel mills in China Mr Quesnel said.
SMS Meer commissions 24" tube welding line at Baosteel
The 24" tube welding line at Baosteel supplied by SMS Meer has successfully gone into production one month ahead of schedule. The total time between the signing of the contract and the start of production was just 17 months.
SMS Meer GmbH forms part of the Tube, Long Product and Forging Technology Business Area of the SMS group.
Vietnam's steel imports down in Q1
Vietnam imported 989,000 tons of steel products worth $476 million in the first three months of 2006, posting respective YOY decreases of 20.3% and 31.4% due to lower domestic demand for the products, the Vietnam Steel Association said.
Vietnam imported 5.6 million tons of steel billets and finished steel products totaling 3 billion dollars in 2005, posting respective rises of 8.7% and 16% over 2004.
Domestic consumption of construction steel has been lower than in previous years, explained the ministry, leading to declining demand and falling imports. The nation's production capacity for construction steel currently exceeds demand. To protect the domestic steel industry, the Vietnamese Industry Ministry has drafted a decree on raising tariffs on imported steel, under which import taxes on rolled steel will increase to 10% from current 7%, and those on galvanized steel to 15% from 10%, the association said.
Domestic steel producers are expected to be able to meet 40% of domestic consumption demand, currently estimated at about 4 million tonnes and will import another 2.4 million tonnes.
CHS order 0.5 million tonne bar mill to Danieli
Chiles Compaa Siderurgica Huachipato SA has contracted Danieli for the construction and installation of a new super flexible bar mill on a turnkey supply basis. Startup of the new mill is scheduled for September 2007. New plants operation will grant CSH an increased production capacity, integration of the latest technology and know how in long products production, as well as consolidation of its market leadership. This is another chapter in the long collaboration between CSH and Danieli which started in the early 90s with the major upgrade of the existing Talcahuano bar mill and with its completion with a high speed wire rod line, successfully in operation since then.
The new state of the art rolling mill will have a 550,000 tonnes per year capacity of 25.4mm to 101.6mm dia round bars for grinding balls production and 8mm to 50mm dia rebars, at rates of up to 120 tonnes per hour. High productivity will be obtained also for the smaller size rebars due to the multi strand slit rolling process which has 4 strands for 8mm and 10mm dia rebars.
The new 18 stand mill will be fed by a 120 tonnes per hour walking beam reheating furnace and will be entirely made up of SHS housing less stands arranged in continuous with quick changing facilities. On line quenching and self tempering of rebars will be made possible by a multi strand QTB line before the cooling bed.
Electricals and automation system will be from Danieli Automation. Danieli turnkey supply includes the auxiliary equipment and systems such as roll turning shop, EOT cranes, all buildings, civil works as well as the erection for the whole plant.
Abbot Point Coal Terminal set to expand
Growth of Queenslands export coal infrastructure continues following the approval of the $116m Stage 2 Expansion of the Abbot Point Coal Terminal north of Bowen. The terminal has an existing capacity of 15 million tonnes and the expansion will increase its capacity to 21 million tonnes and will create faster stacking and reclaiming capacity, additional stockpiles and associated conveyor systems.
Ports Corporation of Queensland CEO Mr Brad Fish said that the work on the 15 month expansion will start soon. The three main construction contracts have been awarded and PCQ has appointed a project manager for the expansion Mr Fish said.
Meanwhile, PCQ has commissioned an environmental impact study for a possible Stage 3 expansion to take the terminals capacity to 50 million tonnes in increments. Implementation of Stage 3 is dependent on the continuing high international demand for coal and construction of the missing rail link connecting the Goonyella and Newlands systems.
Abbot Point Bulk Coal, a subsidiary of Xstrata Coal, operates Abbot Point under a contract.
Agreement between AK Steel & workers could be reached soon
An agreement could be reached in a matter of days if AK Steel Corp. and the Armco Employees Independent Federation continue to talk seriously on outstanding issues to end the 36-day lockout at the Middletown Works, the unions president said Wednesday. The sands shifted somewhat and the discussions have been more serious, said AEIF President Mr Brian Daley of the tone in talks in recent days.
While there are a few issues that AK and AEIF negotiators are still apart on, Daley said both sides are closer on several other issues.
While there are a few issues that AK and AEIF negotiators are still apart on, Daley said both sides are closer on several other issues. Were working to narrow the gap and we hope the company is serious. Were serious. We want to make a quick resolution and the quicker its settled the better.
Sumitomo Metal speeds up shift to high-end steel
Japan's Sumitomo Metal Industries Ltd said that it wants to accelerate a shift to high end steel products in the next three years, when skyrocketing growth in profit is expected to come to an end. We'll accelerate differentiation of our products from rivals. We'll not pursue expansion of production volume said Mr Hiroshi Tomono president of Sumitomo Metal.
Bigger rivals Nippon Steel Corp and JFE Holdings Inc have earlier unveiled similar three year business plans, in which they project small or flat profit growth but have plans to boost capital spending to change product mix as they try to create some distance between themselves and Chinese competitors that are boosting output of commodity grade steel.
Mazda to shift to HDG from EG in 2007
Japanese Mazda Motor Corporation will shift from electro galvanizing steel to hot dip galvanizing steel for the automotive outer panels from 2007 models after the firm decided the shift last year. Mazdas is estimated to buy more than 30,000 tonnes per month of the steels for its own consumption from Nippon Steel, JFE Steel and Sumitomo Metal Industries.
With the higher demand, Nippon Steel will start operation of the new continuous galvanizing line with 360,000 tonnes of annual output capacity at Hirohata works in December 2006 while JFE Steel will starts the new no.6 CGL with 600,000 tonnes of capacity at Fukuyama in January 2007 and Sumitomo Metals starts the new CGL with 300,000 tonnes of capacity at Kashima works in November 2006.
BMZ to double metal cord shipments to US Based Eaton
It is reported that the Belarusian Metallurgical Plant and US based Eaton completed negotiations last week and signed a contract for supply of metal cord amounting to $10 million, twice the amount shipped in 2005.
BMZs deputy GD Ms Nadezhda Gorkusha told "This will make it possible to substantial strengthen the company's position on the US market." She said BMZ shipped $5.5 million worth of industrial products for Eaton in 2005.
Analysts estimate Eaton's annual trade turnover at about $11 billion with operation spread in 125 countries.
Outokumpu receives Euro 30 million orders for grinding mills
Outokumpu Technology has been awarded several new grinding mill contracts worth Euro 30 million from Sweden, Chile, South Africa and Australia.
The largest of these mill contracts is from LKAB Kiruna, a leading Swedish iron ore mining company investing in a new concentrator KA3 and a new palletizing plant KK4, which is designed to produce 6 million tonnes of pellets per year. Outokumpu Technologys delivery will consist of five grinding mills, a cooling system for mills, spiral classifiers, hydro cyclone clusters and two thickeners. Outokumpu Technology will also install all this equipment by mid 2007 and the plant is scheduled to start operation in early 2008.
Outokumpu Technologys other new mill contracts include the delivery in the second quarter of 2007 of two ball mills and technical services for Compaa Minera del Pacicos Atama Iron Ore project in Chile, the delivery, installation and commissioning of a large ball mill for the Nkomati Nickel plant in South Africa, and the delivery of a second ball mill for OneSteels Project Magnet in Australia.
General Steel Holdings reports record results for 2005
General Steel Holdings Inc has announced results for the full year ended December 31, 2005. Revenues for 2005 reached a record $89.7 million as compared to $87.8 million in 2004. Gross profit in 2005 was $8.6 million an increase of 38% from gross profit of $6.2 million in 2004. Gross profit margin increased to 9.6% from 7.1% in 2004. The Company reported record net income of $2.8 million during 2005 representing an increase of 211% from net income of $0.9 million in 2004.
Mr Zuosheng Yu Chairman and President of General Steel said "In 2005, not only did we demonstrate our ability to reach record revenues and increase our bottom line more than two folds, we demonstrated the strength of our market position within the Chinese steel industry. In an industry that has recently been marked by oversupply and pricing pressure, we have firmly established our leadership position within the Chinese agricultural vehicle market, which continues to demonstrate high levels of demand and growth. The continued development of this niche market, along with an increase in selling price fueled our sales in 2005 and resulted in a 7% shipment increase, reaching a record level of 203,422 tons. We believe in the continued opportunity to serve this target market and are excited about our strong market position."
General Steel Holdings Inc and its subsidiary Tianjin Da Qiu Zhuang Metal Sheet Co Ltd is a manufacturer of high quality hot rolled steel sheets primarily for use in tractors, agricultural vehicles and other specialty vehicles. Since 1998, it has expanded its operations to ten production lines capable of processing 400,000 tons of 0.7mm to 2mm hot rolled carbon steel sheets per year, making the company the largest producer in its product category in China, with a 50% market share of all steel sheets used in the production of agricultural vehicles in China.
Mittal Steel to sponsor Polands bid for UEFA European Football Championship
It is reported that Mittal Steel will become the Polish Football Associations lead sponsor in its joint bid with Ukraine to host the UEFA European Football Championship in 2012.Poland Ukraines bid will compete against those from the football associations of Italy and a joint bid from Croatia and Hungary. Mittal Steels exclusive sports sponsorship consultants TWI and World In Motion brokered the deal.
Mr Aditya Mittal president and CFO of Mittal Steel is reported to have said that We are one of the largest foreign investors in Poland and believe that the investment we have made will have significant economic benefit for the country. However, we want our involvement to be more than this and view our position as lead sponsor as a sign of our commitment to the people of Poland. Football is the number one sport in the country and if the bid is successful it would give Poland a unique opportunity to host a global sporting event of unprecedented magnitude.
Geologic study of coal deposit in to Rybinsk to begin in 2006
Geologic study of the Orlovsky coal deposit is to begin in 2006 in Rybinsky district in the Krasnoyarsk Krai, the second largest region of Russia after Sahka Republic having 16% share of coal production in the country.
Prospective reserves by R1 category of the brown coal deposit in the Rybinsky district totals 50 million tons. The study will be conducted on the area of 26 square kilometers. The deposit will be transferred to the mineral resource user, who will make prospecting on its own.
