April, 09 2006
2005-06 a historical and defining year for SAILs Bhilai plant
Financial Year 2005-06 was a defining year for SAILs Bhilai Steel Plant as it made history by becoming the first plant in the country to surpass 5 million tonne mark in production of crude steel in any financial year by producing 5.178 million tonnes of hot metal and 5.05 million tonnes of crude steel recording growth of 14.8% and 10.3% respectively over 2004-05.BSP also recorded 8.9% growth in saleable steel production over last year. The capacity utilization for Hot Metal, Crude Steel and Saleable Steel production was 129.3%, 128.7% and 135.8%, respectively.
The strategy adopted by the BSP for improving utilization of assets for achieving growth in production included operating all 7 Blast Furnaces from May 2005 to December 2005 and 8 Coke Oven Batteries since June 2005. PCI injection was started in BF No 5 and BF No 1 in November 2005 to further bring down the coke rate and effect saving on metallurgical coke. 26 soaking pits were operated in Blooming & Billet Mill to maximize ingot rolling while production of saleable steel was augmented by operating rolling mills beyond rated capacity. Production of Finished Steel was maximized to reduce Semis for Sale.
In addition, thrust was also given on enhancing production of special quality & value added products and development and commercialization of new products, improvement in techno-economic parameters and other cost reduction parameters, completion of new projects and Introduction of new initiatives for preparing organization to face challenges.
Some of the other milestones achieved during 2005-06 include:
1. Cumulative production of Saleable Steel surpassed the 100 million tonne mark in May 2005.
2. Cumulative production of Sintering Plant No 3 surpassed the 10 million tonne mark in August 2005.
3. Highest ever individual Converter lining life of 4820 blows was achieved in May 2005 in Converter B.
4. The first consignment of 260 meter long welded rail was dispatched to the Indian Railways on 24th February 2006.
5. Supply of DMR 249 Grade A plates to Indian Navy for manufacture of aircraft carrier.
6. 6.93 million tonnes of sinter production against previous best of 5.8 million tonnes in 2003-04.
7. 2.65 million tonnes of ingot steel against previous best of 2.53 million tonnes in 2003-04.
8. 2.41 million tonnes of cast steel from SMS-2 against previous best of 2.33 million tonnes in 2004-05.
9. 2.59 million tonnes of ingots rolled at BBM against previous best of 2.52 million tonnes in 2003-04.
10. 2.019 million tonnes of billets at CBM against previous best of 2.018 million tonnes in 2003-04.
11. 0.931 million tonnes of rails & structural surpassing the previous best of 0.925 million tonnes achieved in 2004-05.
12. 0.61 million tonnes of wire rods surpassing previous best of 0.56 million tonnes achieved in 2003-04.
13. 3.24 million tonnes of finished steel surpassing the previous best of 3.20 million tonnes achieved in 2004-05.
BSP also scored high on achieving best ever techno economic parameters:
1. Lowest ever coke rate at 497.1 Kg/THM against previous best of 497.9 Kg/THM in 2002-03
2. Lowest ever specific energy rate at 6.789 GCal/TCS against the previous best of 6.841 in 2004-05.
3. Highest ever labor productivity at 285 T/Man/Year against the previous best of 247 /Man/Year in 2004-05.
4. Lowest ever specific water consumption of 3.79 M3/TCS against the previous best of 3.97 M3/TCS in 2004-05.
5. Power consumption for plant operation reduced to 464.1 KWH/TSS from 484.0 KWH/TSS in 2004-05.
6. Lowest ever consumption of boiler coal at 114,067 T at Power Plant I against the previous best of 215,642 T in 2003-04.
7. Highest ever BF gas consumption of 225 x 1000 NM3/Hr against 174.8 x 1000 NM3/Hr in 2003-04.
8. Overall wagon detention was reduced to 17.20 hrs as compared to 30.52 hrs in 2004-05.
Birth of a global pipe making hub in Kutch
Earthquake struck Anjar in Kutch district in Gujarat India has become a global pipe manufacturing hub in recent years with all the Indian pipe majors Welspun Gujarat, Jindal Saw, PSL, Man Industries and Ratnamani Metals and Tubes setting up their plants in the region to reach a combined capacity of around 1 million tonnes per year and likely to double it in near future. Mr BK Goenka, Chairman of Welspun Gujarat said that Indian companies now account for almost a quarter of the world's pipeline sales. The current global boom in oil and gas has sent pipeline demand skyrocketing. Water and sewerage pipe demand is rising too. All Indian pipe companies have become global players. And all have flocked to Anjar for expansion.
Welspun Gujarat has a capacity of half a million tonnes at Kutch, which is being doubled. Welspun has also to put up a captive steel plant and plate mill of one million tonnes capacity for producing wide plates in API grades. Jindal Saw has built a blast furnace for producing iron for its ductile pipe plant of 0.2 million tonnes capacity in Anjar and plans to expand the capacity of all type of pipes to 0.5 million tonnes in addition to a plate mill. Man Industries has built up a capacity of 0.3 million tonnes at Anjar. PSL and Ratnamani Metals have also put up substantial capacities in Kutch.
The reasons for this development include tax benefits like excise duty exemption, income & sales tax holiday by the Government announced for Kutch after the earthquake in 2001. This region also excellent logistics for import of steel, iron ore and coal as well as export of pipes with all season Kandla and Mundra port in the vicinity. Another factor has been the availability of hassle free land at reasonable prices.
PSL bags $19 million pipe order from Oman
PSL Limited has bagged an order worth 19 million dollars from Oman for supply of steel pipes. MD Mr Ashok Punj said that the order would be executed from their existing plants in Kandla.
Mr Punj also said that their proposed new facility in the Middle East is still on the drawing boards, which is expected to be operational before March 2007.
L&T bags order of coal gasification equipments from China
Larsen and Toubro announced that it has bagged an Rs.3.68 billion ($82 million) order for supply three sets of gasification equipment to Datang International Power Generation Company for its coal based olefin project in Duolun country in Inner Mongolia. L&T will complete dispatch of equipment by September 30th 2007 and depute its engineers in Duolun to complete assembly of the equipment sections by February 15th 2008.
The equipment will help produce 1.5 million tonnes per annum of methanol, to be subsequently converted into propylene and further into polypropylene.
With this contract, the cumulative order booking of L&Ts heavy engineering division from China exceeds $220 million.
SER sets 85.86 million tonnes freight movement record
South Eastern Railway has topped among all the zonal railways in the country during 2005-06 with freight loading of 85.86 million tonnes and increase by 18% over 73.07 million tonnes moved during 2004-05. SER has earned Rs 3,970 crore in 2005-06 as against Rs 3,030 crore of 2004-2005 registering a 31% revenue growth from last years Rs 940 crore.
Carriage of raw materials to steel plant was the major contributing factor behind the record breaking performance which posted a record loading of 25.05 million tonnes of carrying raw materials to steel plant, thus surpassing the volume moved during 2004-05 by 4.24 million tonnes.
Among other factors of loading were 19.28 million tonnes of coal, 20.10 million tonnes of general merchandised goods, 8 million tonnes of finished products from steel plant, 6.49 million tonnes of export ore, 4.81 million tonnes of cement, 0.5 million tonnes of food grains, 0.58 million tonnes of fertilizer and 1.5 million tonnes of POL.
China extends AD on CR SS from Japan and South Korea
China will extend anti dumping duties between 17 to 58% for 5 years on import of cold rolled stainless steel sheets from Japan and South Korea for five years as per a release for Chinas Commerce Ministry. The move would be effective immediately. The duties would be levied at the same levels as previously it said, without elaborating.
The decision to extend the duties came after the ministry submitted a proposal to the tariff regulatory commission under the State Council, the country's cabinet. The ministry has conducted a one year of investigations on the two Japan & South Koreas practices to review its anti dumping measures since last year. Based on the investigation's findings, the ministry has determined that lifting the anti dumping duty will likely lead to renewed dumping of such goods on the Chinese market and may cause damage to China's domestic steel making industry.
PSMC Privatization - MMK receives LoA from Pakistan Government
ОАО Magnitogorsk Iron and Steel Works has announced receipt of Letter of Acceptance from the Government of Pakistan, which signifies that the Consortium comprising ММК, Al-Tuwairqi and Arif Habib Group has been deemed the winner of the auction to sell 75% stake in Pakistan Steel Mills Corporation.
The next step in transaction closing would be signing an Agreement between the Government of Pakistan and members of the Consortium, which is planned for the second half of April 2006 after the payment of the first installment amounting to 25% of the purchase price is paid.
Mexican Grupo Villacero fires 300 striking union workers
It is reported that Mexican steel maker Grupo Villacero fired 300 unionized workers who are leading a strike at its mills in the Pacific port city of Laro Cdenas citing a company official. Villacero CFO Mr Ignacio Trevi said that the company rescinded the contracts of 300 union workers who led the walkout that started Monday. Mr Trevi said that Villacero, which has 2,000 workers at Laro Cdenas, has called on federal and state authorities to remove picketers and restore access to the facilities.
The National Mining and Metal Workers Union said in a statement that it will take all legal measures available to it to keep Villacero from carrying out the firings.
Labor officials have said the strikes are illegal. The government says dissident Mr Els Morales is the union leader, and last week rejected a union notification ratifying Mr Gez Urrutia in his post.
The strike, which started Monday over a dispute between the union and the Labor Secretariat over the union leadership, is also affecting the Mexican unit of Mittal Steel. The union said that walkout was to demand respect for union autonomy and that the workers would stay on strike until the government recognizes Mr Napole Gez Urrutia as the union leader. Members of the union have also been striking since March 24 at the La Caridad copper mine in the northwestern state of Sonora, owned by Grupo Mico SA.
US mills' domestic shipment up in January 2006
The American Iron and Steel Institute reported that for the month of January 2006, US steel mills shipped 8.918 million net tons, a 1.4% increase over 8.791 million net tons shipped in January 2005 and a 4.8% increase from the 8.513 million net tons shipped in December 2005.
A YOY comparison of year to date shipments to major market classifications shows that service centers and distributors are down by 6.1%, automotive is up by 15.3%, construction and contractors products up by 30.4%, oil and gas up by 6.9%, machinery, industrial equipment and tools up by 7.4%, appliances, utensils and cutlery, down by 3.4%, containers, packaging and shipping materials up by 3.1% and electrical equipment down by 4%
AISI serves as the voice of the North American steel industry in the public policy arena and advances 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. AISI's member companies represent more than 75% of both US and North American steel capacity.
Severstal rolls 4363x18300 plates for pipe making
It is reported that Severstals plate mill 5000 in Kolpino has rolled a trial order for a large dimension K60 strip for Izhorsky large diameter pipe plant. The dimension of the rolled plate is 21.6mm x 4363mmx 18300. The successful trial at Mill 5000 is an important achievement in Severstals attempt to development large dimension plates for large dia pipe making particularly due to proximity to Izhorsky pipe plant.
Severstals Technical Director Mr Alexander Stepanov stated large dimension plates are required for North European pipelines and that Viksa plant has also rolled a large diameter plate in 2005 but which was almost 1.5 times shorter in dimensions.
Vyksa to increase product spectrum by modernizing tube mill
JSC Vyksa Steel Works of Russia has placed an order for the modernization of the 21 tube welding line with SMS Meer, Mchengladbach, Germany. The line is predominantly used for the production of oilfield tubular and line pipes in the size range from 8 5/8 up to 21. The objectives of the modernization are: Expansion of the product spectrum, significant reduction of the mill changeover times, improvement in the product quality with respect to diameter tolerance and ovality and the production of tubular sections.
The scope of the SMS Meer order essentially comprises the modernization of the fin pass and sizing stands and the replacement of the squeeze stand. The modernization of the fin pass and sizing stands will create a roll assembly system with quick-changing facility. The new squeeze stand is a five-roll stand with SMS Meers URD design. As with the fin-pass and sizing stands, it will be equipped with motorized adjustments and the Quicksetting system to ensure high precision and reproducibility of the settings. The 21 tube welding line will be equipped with a new QAS system.
In addition, a new hot sizing mill will be supplied in which the welded mother tubes will be formed into round tubes or tubular sections with square or rectangular cross-section.
SMS Meer GmbH forms part of the Tube, Long Product and Forging Technology Business Area of the SMS group. SMS GmbH is the holding for 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.
MMK announces US GAAP financial results for 2005
ОАО Magnitogorsk Iron and Steel Works, one of Russias leading metallurgical companies, announced consolidated financial statements for FY 2005, reported in accordance with US GAAP).Gross revenue of MMK group of companies in 2005 increased by 11.4 % as compared to 2004 and constituted $5.380 billion. Income from operating activities amounted $1.323 billion a decrease of 14% over $1.538 billion in 2004. Consolidated net revenue decreased by 23.1% to $947 million over 2004. In 2005 EBITDA totaled $1.511 billion, a 12.9% decrease over 2004.
MMK produced 11.4 million tonnes of steel and 10.2 million tonnes of finished products during 2005, exceeding the output in 2004. Average annual price per ton of steel products amounts $485 in 2005, an increase of $46 over 2004.the increase compared to last year comprised USD 46.
However the rate of costs increase exceeded the rate of revenue increase that determined the decrease of the output and profitability volume. The main factor of the production cost growth was the raw material price increase.
Commenting on the production and financial results of the company in 2005, Mr Victor Rashnikov the Chairman of the Board of Directors noted Despite the reduction of prices on the steel market in 2005 JSC MMK has increased its output of commercial steel products, showing the best result in modern history. We quickly responded to the worsening market conditions by changing regional structure of export and product range structure. Our Companys Investment Program, providing reducing production costs, new projects aimed at raising productivity and improving product quality, broadening range of products including products with high added value, has also made a positive effect on the financial results of the Group. The financial statements for 2005 also confirm that despite all the difficulties we effectively coped with all tasks and achieved our targets.
JSC Magnitogorsk Iron and Steel Works is the top ferrous metallurgy company in Russia with 20% domestic market share. MMK is a vertically integrated group comprising parent company and more than 60 subsidiaries which perform supporting activities in production and sales of steel products.
PSMC Privatization Minster defends sale decision
Mr Awais Ahmed Khan Leghari Pakistans Federal Minister for Privatization & Investment said Pakistans Cabinet Committee on Privatization while approving the reference price had authorized the Privatization Commission prior to holding the bidding for Pakistan Steel Mills Corporation, to issue Letter of Acceptance in case the highest bid is above than the reference price determined by the CCOP.
He said that all standard procedures were observed before and after the bidding of PSMC and the privatization of PSMC was among the most transparent and successful transactions. He said that all the phases of transaction inviting Expression of Interest from all local and international investors including PSMC EMG, pre qualification, due diligence by the investors, pre bid conference and bidding were widely publicized, which kept all the stakeholders well informed.
He explained the process of appointment of Citigroup Global Markets as financial advisor and that standard methods used for valuation were Discounted Cash Flow Basis, Comparable Companies Analysis and Precedents and the financial Projections were prepared for ten years basis with sensitivity analysis, he informed. The value of $ 362 million received from the highest bidder for a 75 % equity stake ($ 483 million on 100 % basis) reflected the value of PSMC on a going concern basis, it took into account its ability to generate cash flows in the future after taking into account the substantial investments, he further stated.
The Minister further stated that PSMC received the highest offer above than the approved price, therefore, it could not be termed a sale at a throw away price. The Privatization Commission was bound under its rules and regulation, not to disclose the reference price of any entity at any forum, he replied to a question.
He said that now when the process of privatization of PSMC has been successfully completed, the individuals with vested interest were suggesting new and out of process offers, which would never be considered appropriate, justified and transparent by any economic writer, analyst or critic.
Two coal miners killed in separate accidents in WV
Two workers were killed in separate accidents on Friday in Boone and Mingo counties, bringing the state's total of mine-related deaths this year to 18.
A spokeswoman with the federal Mine Safety and Health Administration says the first accident happened at Mystic Energy's Candice No 2 Mine in Boone County. She says the preliminary findings are that the worker was somehow pulled into a conveyor system. In the second accident, a locomotive operator was killed in a roof fall at Jacob Mining's Number One Mine in Mingo County.
Danielis ultra modern mill starts up at Kroman lik in Turkey
A new Danieli Morgdshammar bar and wire rod started operation at Kroman lik Sanayii AS steel complex in Gebze near Istanbul during March 2006, reported to be one of the most technologically advanced rolling mills for long products in Turkey. The latest Danieli technologies applied and the wide range of product type and sizes makes this super flexible mill a powerful tool for Kroman lik to acquire more share of the long products market.
The new multi line mill has a 500,000 tonnes per year designed capacity of 8mm to 50mm deformed bars, 16mm to 75 mm quality plain bars, 5.5mm to 20mm wire rod, 6mm to 16 mm deformed wire rod in coils and 8mm to 50 mm spooled plain bar in coils weighing up to 3.4 tons. Steel grades are low, medium and high carbon and alloyed steel for the construction and mechanical industries, including drawing, cold heading, spring, bearing and similar applications.
The 20 stand super flexible mill features a high speed wire rod production outlet and a Spooler line for bar in coil production that will be started up later on this year. Direct connection to a 6 strand Danieli continuous caster, in operation since 2001, makes it possible for direct hot charging of billets. Electricals and automation system are from Danieli Automation, while Danieli Centro Combustion has supplied the walking hearth reheating furnace of 120 tons per hour capacity in hot charge mode.
Global Steel to bring in new equipment for ZISCO
Global Steel Holdings Limited announced that it plans to bring in new equipment to resuscitate malfunctioning blast furnaces at the Zimbabwe Iron and Steel. Mr Lalit Sehgal MD said that GHSL will pour in $400 million into Ziscosteel. Apart from blast furnace three that has been down for eight years, we will also acquire, for this venture, new equipment necessary in smelting iron. At the moment there already 12 engineers on the ground and we are expecting 40 to 45 anytime soon. At the end of the day, what we want is to provide to the local, regional and international markets the best steel possible he said.
Mr Sehgal said the deal inevitably meant that his company would have to enter other business partnerships with Hwange Colliery Company and the National Railways of Zimbabwe for a consistent supply of coal. Apart from that, we are going to persuade the authorities to let us increase the capacity of Munyati Power Station. We have to introduce the idea of acquiring electricity from waste material as is common in India. In fact, we have invited ZESA to India to see and learn how they can generate this type of electricity, he said.
National Coal reports net loss in spite of increased sales
US based National Coal's coal sales increased 241% to 1.2 million short tons in 2005, from 357,000 short tons in 2004, but the company still reported a net loss of $6.8 million on revenue of $65.9 million, compared with a net loss of $10.4 million on revenue of $17.0 million in 2004. The company attributed the increase in revenue to the increase in production, the addition of three new utility customers for its Central Appalachian coal and a 15% increase in average sales prices.
The cost of sales skyrocketed to $51.1 million in 2005 from $16.3 million in 2004, the company said. The company also changed its depreciation life of its mining equipment from seven years to approximately three years, increasing both the 2005 operating loss and the 2005 net loss by $3.6 million."
National Coal said it plans to continue to expand coal production in 2006, leveraging the fixed costs from its infrastructure. It will also pursue additional long term contacts, capitalizing on the strong price environment for CAPP coal. It had 2006 contracts for 1.5 million short tons at the end of 2005. The company said it plans to expand its Tennessee production by focusing on owned reserves, particularly those in the New River Tract in eastern Tennessee. In the first and second quarters of this year, National Coal will spend $7 million to build its infrastructure through the purchase of a railroad and to refurbish a large preparation and rail loadout facility. Once completed, the new infrastructure will allow National Coal to ship 250,000 short tons per month from its New River property. It has five approved permits for new mining opportunities and has submitted applications for six more, the company said.
"Our achievements in 2005 put us into position to take advantage of opportunities for organic growth in 2006 and beyond. The business plan we created is being executed and expanded, especially in the area of reserve tracts we own. These assets are expected to start showing their first revenue contributions in late Q2 2006" said Mr Jon Nix, National Coal chairman, president and CEO.
HKM employs tuye water leak monitoring system at BF
Duisburg based Httenwerke Krupp Mannesmann employs a total of 60 Optiflux electromagnetic flow meters from Krohne to measure flow rate differences in the cooling water circuit of its blast furnace B to detect leaks at the blast furnace tuyes as early as possible. Such leaks inevitably lead to water entering the blast furnace which deteriorates the quality of the steel and can cause an oxyhydrogen gas explosion.
These nozzles are arranged in a ring in the wall of the blast furnace and blow hot wind at a temperature of 1300C into the furnace for the reduction process. Each of the tuyes comprises two chambers and has a water cooling system to prevent damage being caused by the hot melt that would result in leaks.
Differential flow measurements are generally difficult because the water volume to be measured lies in the range of the measuring uncertainty. In order to achieve this goal, two Optifluxes were calibrated together so that the flow meters can detect the admission of even minimal amounts of water into the blast furnace. Two jointly calibrated flow meters then monitor each tuye and trigger an alarm as soon as the limit value of 0,4% of the full scale range is exceeded. HKM is thus able to shut down defective tuyes and avoid costly standstills of the plant that could otherwise be caused by water damage.
Phelps Dodge to restart Climax Molybdenum mine
Phoenix based Phelps Dodge Corp announced that its board of directors had approved restarting the molybdenum mine high atop Fremont Pass near Leadville mine. No opening date was given and the re start is contingent upon completion of a final feasibility study and obtaining the necessary operating permits and regulatory approvals.
Located at 11,300 feet near the Continental Divide at Fremont Pass, the Climax Mine has both open pit and underground mining operations as well as a mill that processes and crushes the raw material. Climax once employed thousands of people from the Leadville area, with its heyday during the World War II era. When competing mines around the world caused the price of the metal to drop, the Climax mine closed, with only a skeleton staff up there since 1995.
According to Phelps Dodge, a pre-feasibility study shows the open pit mine could produce 20 30 million pounds of molybdenum annually. The company also estimates it will cost $200 million to $250 million in capital costs to restart the mine with a state of the art concentrator and other facilities.
"Molybdenum market fundamentals remain strong" said Mr J Steven Whisler CEO of Phelps Dodge. "We believe the Climax mine is the best non operating molybdenum resource in the world." He added.
In addition to hardening steel, molybdenum is used in catalytic converters for cars, light bulbs and as an ingredient in paint and other chemicals. Phelps Dodge also owns and operates Colorado's only working molybdenum mine Henderson in Clear Creek County.
Ukraines ferroalloy export increased in February
According to the export data, Ukraine export ferroalloy reached 104,560 tons in February as against 103,690 tons in January.
Silicon-manganese export volume in February reached 76,550 tons, increasing by 4,830 tons as compared to January.
Ferromanganese export amount in February reached 15,370 tons, increasing by 3,370 tons as compared to January.
