November, 18 2006
Galvanised steel firms to hike prices
Galvanised steel manufacturers, JSW, Uttam Galva and Essar Steel, are expected to hike zinc prices.
When this happens, it will be the second hike in the last two weeks. Galvanised steel prices saw a scheduled increase in prices by Rs 1,500 a tonne at the beginning of the month.
Uttam Galva will be increasing galvanised steel prices by Rs 750 to Rs 2,000 a tonne, followed by JSW Steel, which is expected to hike prices by Rs 1,500. The price rise by both the companies are likely to be seen this week.
Officials from Essar Steel said the company would not be raising prices for the moment, as its agreements are on a long-term basis. But, there will be a revision in prices next month, they said.
Ankit Miglani, director, commercial, Uttam Galva, said, Due to rising international prices of zinc, the Indian steel industry is coming under pressure. We have no option but to pass on the rise to the customers.
Coal ministry to diversify in power generation business
It is reported that union coal ministry is considering setting up thermal power plants in different parts of the country to increase its revenues. As per reports, Coal India Ltd will enter the power generation business jointly with Naively Lignite Corporation with a 2,000MW capacity thermal power plant is to be set up at the pithead of one of the mines located in the command area of Mahanadi Coalfields Ltd in Orissa. Subsequently it will set up 2 other super thermal power plants in the Northern Coalfields and in Jharkhand.
Mr Shibu Soren union minister of coal said that although it would be a new line of business for the CIL, the company would gain in the long run by associating itself with the project as a promoter.
Bandh disrupts Talcher coal loading, not production
The indefinite strike called by the Khyatigrsata Prajasangh at Talcher coalfield had impact on coal productions in the five mega open cast mines. The coal transportation was, however, completely hit due to the bandh. Only nine rakes, carrying coal, moved out of the Talcher coalfield today as against the normal 16, according to railway officials.
The dispatch of coal to NTPC, Kaniha and Nalco was also hit due to the bandh call. Regarding this Police had arrested 33 persons as a preventive measure and deployed 5 platoons in the coalfield area to maintain law-and-order.
Meanwhile, the agitation launched by the people of Soloda blocking the coal production in Balaram mine continued for the eighth day today.
In a related development, an emissary of Union minister of coal and JMM leader Mr Sibu Soren came to Talcher today and addressed the striking members, assuring them of discussion on their demands.
It is also learnt that the Union coal secretary will come to Bhubaneswar on 1 December to discuss the contentious issue of rehabilitation being faced by MCL in Orissa with the state chief secretary.
Chennai Port likely to overtake Vizag as No 1 this year
It is reported that Chennai Port with tremendous performance during April to September 2006-07 is closing on Indias biggest Vizag Port. If this trend continues, Chennai is all set to take number 1 slot among Indias major ports this year.
During April to September 2006-07, Vizag port handled 26.179 million tonne of cargo and Chennai port handled 26.028 million tonnes handling registering a fall of 1.43% YoY and increase of 9.75% YoY respectively.
For the last six years, the Vizag port has been enjoying number one status in handling cargo among all the 12 major ports in the country.
Sail head assures measures to alleviate RSP woes
Sail chairman Mr SK Roongta Visited Rourkela steel plant and gave assurances of opening at least three health centres, free health care to the needy, appointment of more specialist doctors at the IGH and setting up two more English medium schools for children Steel Plant employees.
The chairman held discussions with different unions, executive association of RSP, puts several demands ranging from increasing the capacity of the plant to increment.
Leaders of some of the major unions informed him about various problems of workers at the plant, besides making formal demand for settling some of the urgent issues at the earliest time possible.
Steel Strips & Tubes - Outcome of Annual General Meeting
In the 33rd Annual General Meeting (AGM) of the Steel Strips & Tubes Ltd the following Point is accorded:
1. Adoption of the Audited Profit & Loss Account for the year ended March 31, 2006 and the Balance Sheet as at that date along with the Director and Auditors Report thereon.
2. Re-election of Shri R K Garg as a Director of the Company.
3. Shri V Parkash, who retires by rotation and who has since resigned from the Directorship w.e.f. August 01, 2006, be and is hereby not reappointed.
4. Re-appointment of M/s S C Dewan & Company, Chartered Accountants, as the Statutory Auditors of the Company from the conclusion of this Annual General Meeting till the conclusion of the next Annual General Meeting of the Company, on terms & conditions.
5. Increase the remuneration of Shri Sanjay Garg, Executive Director of the Company w.e.f. January 01, 2006, on terms & conditions.
6. Re-appointment of Shri Sanjay Garg, Executive Director of the Company for a period starting from June 27, 2006 to December 31, 2008, on remuneration, terms & conditions.
CSN's counterbid for Corus steel
The Brazilian steel maker CSN has offered a counter-bid for the Anglo-Dutch steel giant at 475 pence per share against 455 pence per share by TATA Steel. This may open up a bidding war.
CSN intends to finance the acquisition of Corus through a combination of existing financial resources and new debt facilities provided by a bank syndicate, which includes Barclays and BNP Paribas.
In the largest foreign takeover deal by an Indian company, the Corus Board approved TATA Steel's bid on October 20, for $10.2 billion, including debt, which would make the Indian steel giant the world's fifth largest steelmaker.
The TATA Steel did not comment so far on the counter bid.
Aecleor Brazils Q3 earning up by 50% YoY
Arcelor Brasil has reported a Q3 net profit of 619 million Brazilian reels ($289 million) up 50% from BRL413 million in the year ago quarter. Arcelor Brasil noted that the third quarter 2005 results were made on a pro forma basis for comparison purposes.
Arcelor Brazils net revenue in the third quarter rose by 20% to BRL3.63 billion from BRL3.04 billion in the year ago quarter. EBIDTA increased by 21% to BRL1.19 billion from BRL989 million in the year-ago quarter.
Arcelro Brazil said that the year ago quarter results were adjusted to account for gains, expenses and charges related to the consolidation of Companhia Siderurgica Tubarao, Belgo Mineira and Vega do Sul under the Arcelor Brasil banner.
Jinan Steel to sells emission credits
It is reported that Jinan Iron and Steel Group Corp of China has agreed to sell about 12.3 million tons of emission credits to an unspecified buyer.
Camco International Ltd, which is advising Jinan, said that a project to capture and use greenhouse gases from the steelworks will create the credits.
Mr Scott McGregor CFO of Camco said that the project is one of the largest energy efficiency projects developed in China under the 1997 Kyoto Protocol's Clean Development Mechanism.
Blast Furnace at Gwangyang produces 50 million tons of molten iron in the shortest period of time
Blast Furnace No.3 at POSCO's Gwangyang Steelworks achieved a new world record on October 30 by producing 50 million tons of molten iron in the shortest period of time which is 15 years and 11 months (5,809 days) since December, 1990 when the furnace first began operation.
The 3800 cubic meter furnace beat the previous record of 16 years and 2 months made by Blast Furnace No.2 in the same steelworks by almost 3 months.
The 50 million tons of production means the furnace has provided steel materials for 50 million cars or, another 10 years worth of production for car makers. Typically, making one car requires one ton of steel products, a press release by POSCO said.
The greatest contributing factors include the minimization of variations in air-intake to the furnace, the stabilization of the hearth wall temperature by means of supplying sufficient airflow, and good maintenance of the hearth to maximize its life span as well as leveling off the concentrations of charging materials.
Bolivia waiting for Jindal
Bolivia Mining and Metallurgy Minister Mr. Guillermo Dalence is waiting to discuss the final points of the EI Mutun iron ore project with Jindal Steel & Power.
Jindal got the right to develop the project and will invest $2.3 billion, which includes setting up a 10 million tonne pellet unit, a 6 million tonne sponge iron plant and the 1.7 million tonne steel unit.
Wheeling-Pittsburgh board change expected to result in acceleration of debt payments
Wheeling-Pittsburgh Corporation announced today that replacement of a majority of its Board of Directors effectively constitutes a change of control under its $250 million Term Loan Agreement and $225 million Revolver, and would cause a default on those loans. If a default occurs, such indebtedness would become immediately due and payable.
Mittal Steel SA to procure slabs from group companies
Amid domestic shortages, Mittal Steel South Africa plans to import 45 000 tons of steel slabs to make up for loss of output after a fire last month.
Mr Rick Reato CEO of Mittal Steel SA said "We have ordered 45 000 tons of steel from within the group to help meet the shortfall after the fire we had. We are also increasing production from our other furnaces and diverting products intended for export. Mr Reato said that the company would import more if necessary.
Mittal Steel SAs output was disrupted after damage caused by a fire at its main plant in Vanderbijlpark and is estimated loss is of about 106,000 tons in liquid steel output.
Oregon Steel Mills' Q3 profit up
Oregon steel reported the Q3 2006 operating income and pretax of 185% and 176% respectively, YOY, resulting in record net income $50.6 million. The company's net income of $127.9 million for the first nine months of 2006 exceeded 2004's previous record annual net income of $116.7 million.
The Q3 sale in 2006 up by 43% to a record $429.1 million compared to sales of $299.7 million YOY. Total shipments for Q3 of 2006 451000 tonnes were 18% higher than compared to Q3 of 2005 shipments which were 381800 tonnes.
The company informed that the increase in shipments was primarily due to increased shipments of plate and coil, rail and welded and seamless pipe products partially offset by lower shipments of bar and rod products. The primary reason for the decline in bar and rod shipments is due to company's decision to divert raw steel to the production of seamless pipe production and away from rod and bar products.
Steel prices still sliding
Wheeling-Pittsburgh Steel had to temporarily exit the flat-rolled steel market because of falling steel prices. The company attributes falling prices to high imports, weak automotive demand, reduced housing starts and high service center inventories.
Wheeling-Pittsburgh informed that it expects its shipments in the fourth quarter to decline by 25% versus 610,000 tonnes in the Q3. Executives at the West Virginia firm see domestic production cuts and expects reduced import activity, which will result in improved market conditions as the market enters 2007.
Bekaert to close its steel cord plant in Dyersburg, Tennesse
Bekaert announced today its plan to phase out operations at its manufacturing facility for advanced wire products in Dyersburg, Tennessee. Steel cord is produced at this plant, which is used in a variety of tire and other rubber reinforcement applications.
Steel firm sanctioned over death of a worker
The Ministry of Labour has issued 15 orders against a Stittsville steel company after a worker was crushed to death in an industrial accident few days ago. The worker was found under several steel columns at Excelcon Steel Co Ltd. According to the ministry, the worker was assigned to unload the columns using two overhead cranes and a trolley.
The 15 orders include an edict for Excelcon Steel to stop using the trolley to move the steel until the device is equipped with guards or other precautions to protect workers' safety. The ministry is ordering the company to have the crane examined at least once a year.
Queensland to spend on increasing coal export capacity
It is reported that the state government in Queensland will spend a$1 billion on the initial construction phase of a coal export terminal at Wiggins Island, with the aim of increasing exports through the nearby port of Gladstone. In addition, the government said it plans a A$92 million upgrade of the RG Tanna rail unloading terminal at Gladstone, with construction anticipated to commence before the end of 2007.
In its initial phase, Wiggin Island is expected to house 25 million tonnes for Gladstone, which exported a record 67.2 million tonnes of coal in the year ended June 2006. An extra 60 million tonnes to 70 million tonnes will be exported following its completion in 2010-2011 enabling producers. The terminal development would include a stockyard with stacking and reclaiming conveyors and machines, out loading conveyors and three ship loaders.
Ms Anna Bligh acting state premier said "On ultimate completion of Wiggins Island and the expansion of the RG Tanna facility, coal exports from Gladstone could hit 40 million tonnes per year making Gladstone one of the largest coal exporting ports in the world.
As per reports, the expansion will ensure that there is an outlet for as yet undeveloped coal deposits in the Surat and Bowen basins such as AMCI Australia`s Belvedere deposit and Macarthur Coals Monto site as well as allowing existing operations to expand.
Zinifex looking overseas for growth
Australian zinc miner Zinifex is looking overseas for production growth. Mr Greig Gailey CEO said that his company is expected to announce JV deals with junior explorers in areas such as Mexico and South America this year to help it increase production in the longer term.
Mr Gailey said it was becoming more difficult to develop new mines due to political risk in unstable countries or the high cost of building projects in areas of the US and Canadian Arctic.
Zinifex, which was reborn from the ashes of failed miner Pasminco, plans to spend $27 million on exploration in the 2007 financial year, up from $12 million in 2006 and $4 million in 2005.
Newcastle City Council asks for cap on coal exports
It is reported that Newcastle City Council has called on the NSW government to cap coal exports through the city's port at present levels to fight climate change and has also called for an inquiry into coal mining, a coal export levy, mandatory renewable energy targets, and improved public transport and cycling infrastructure.
Mr Michael Osborne Greens councilor said, "This decision should serve as a big wake up call to both state and federal governments to get serious about climate change and to initiate a just transition towards sustainable energy.
Mr Osborne said the recent Stern Report showed increasing coal exports did not make economic sense. He said that the environmental and social cost of each tonne of coal exported through Newcastle was $264, he said, far in excess of the market price.
The Port of Newcastle is the world's largest coal exporting port. The decision came at a significant time, with the NSW government considering a major expansion of the Hunter coal industry and the public spotlight on the federal government's climate change policy.
