November, 20 2006
Paswan for policy on Chinese steel cos entering India
Inaugurating the Ministry of Steel's pavilion at the India International Trade Fair (IITF). Steel Minister Mr Ram Vilas Paswan said, The government should frame proper policies on the entry of Chinese companies in India. They (Chinese steel firms) could be looking for opportunities here,"
Give the ability of Chinese companies to manufacture and sell steel at cheaper rates, the domestic steel industry is apprehensive that allowing entry to them could threaten their existence.
Paswan suggested that Steel Authority of India Ltd (SAIL) should emulate TATA Steel in expanding globally.
"SAIL should look abroad for acquisitions, like the way TATA Group is acquiring Corus," the minister said.
Indian firm interested in Cape Lambert
Large Indian corporate house Essar Group is looking to take a stake in Cape Lambert and build a pallet plant at Western Australia
Cape Lambert is looking at a potential 15 million tonne per annum operation coming on stream by 2009 and costing about $600 million.
A pellet plant could add a further $1 billion to the capital cost.
Ironically, Cape Lambert chairman Mr. Ian Burston ruled out the construction of a pellet plant at a briefing in August, citing the added cost would put a big question mark on project economics.
Cape Lambert has signed non-binding agreements with three Chinese outfits for potential equity stakes in the company and off take from the project.
However, Cape Lambert refused to comment, but sources close to the company confirmed that representatives for Essar have conducted due diligence on the project and had meetings with Cape Lambert management.
Steel held steady in thin trade
Steady trend was noticed in the wholesale steel and iron market on Saturday as prices after moving in a narrow range and settled around previous levels.
Following were Saturday's quotations per tonne in rupees:
CTD saria (kamdhenu) 8-mm, 29,150, 10-mm, 28,500, 12-mm 28,050, 16-20 mm 29,150 and 25-mm Rs 29,050.
Rathi tor steel : 8-mm 29,100, 10-mm 28,500, 12-mm 27,750, 16-20 mm 28,200 and 25-32 mm 28,300.
Saria Jai bharat (ISO 9002) 8-mm 28,000, 10 mm 27,600 12-mm 26,700, 16 to 25 mm 27,400-27,500.
Amba saria (ISO-9002) 8-mm 27,400, 10-mm 27,000, 12-mm 26,000, 16-20-mm 26,800, 25-mm 26,900.
Amba shakti: (TMT) 8mm 28,300, 10 mm 27,400, 12 mm 26,700, 16 to 25 mm 27,000-27,100.
M S Angle: (50x5) (50x6) 25,300, (25x3) (32x3) (40x3) 26,300, (40x5) (40x60) 25,400. Angle capital (ISI) (50X5) (50X6) 25,600, (40X5) (40x6) 25,700, (35X5) (65X6) 25,600-25,700.
Girder (joist) (150x75) 26,500 (175x85) 26,700 (200x100) 23,500 (125x70) 26,800. T-IRON (40X5) (40X6)(50X6) 22,400.
Ingot and Scrap: Mill heavy 16,300-16,500 Turning boring 15,050-15,150, Cast Iron 16,400-16,500, Motor parts 13,300-13,400, Rail re-rolling 15,200-15,300 and ingot Bhivari 17,900.
Lead and Zinc Production zooms during April-September, 2006
Production of lead and zinc in the country in the organized sector during April-September, 2006 has been 19,939 and 1,76,703 tonnes against 7,199 tonnes and 1,29,465 tonnes respectively during the YoY.
Out of this, Hindustan Zinc Limited (HZL), with 29.54% Government equity produced 1,60,701 tonnes of zinc and 19.939 tonnes of lead. Private sector Binani Zinc Limited (BZL) produced 16,002 tonnes of zinc.
During September 2006 HZL produced 28,467 tonnes of zinc and 4,228 tonnes of lead. BZL during the month produced 1,726 tonnes of zinc.
Indian Railways freight earning up by 15.93% YoY in 7 months
The total approximate earnings of Indian Railways on originating basis during the period April to October 2006 were Rs 34335.87 crore up by 14.99% as compared to Rs. 29859.44 crore during the same period last year.
Indian railways total goods earnings have gone up from Rs. 19907.92 crore during April to October 2005 to Rs. 23079.24 crore during April to October 2006 an increase of 15.93%.
PSUs threatens to go on indefinite strike
At the 2-day meeting of representatives of different Public sector undertaking (PSUs) held in New Delhi threatened to go on indefinite strike from December 11 if their demands are not fulfilled. A new forum 'Coordination Committee of Officers Association of Central Public Sector Undertakings' was formed at the meeting.
Representatives from the oil sector, NTPC, Coal India, SAIL, NHPC, BSNL, MTNL and BHEL and others participated in the meeting. Mr Sukhdeo Narayan (president CMOAI), Mr KP Singh (general secretary) and Mr Damodar Bannerji (treasurer) represented Coal India at the meeting.ndiae)
Steel Stripss members approve to re-elect director
At the 33rd annual general meeting (AGM) of the Steel Strips & tubes company Mr R K Garg re-elect as a director of the company.
The re-appointment of Mr S C Dewan & Company, chartered accountants, as the statutory auditors of the company from the conclusion of this annual general meeting (AGM) till the conclusion of the next AGM of the company, on terms and conditions was approved by the members.
The members have also increased the remuneration of Mr. Sanjay Garg, executive director of the company with effect from January 01, 2006, on terms and conditions.
Meeting future nickel demand increasingly expensive
The sustained period of higher nickel prices may be the sign that the global nickel industry is entering a new phase, commented Norilsk Nickel chief economist Mr David Humphreys at the CRU Ninth World Stainless Steel Conference in Dusseldorf, Germany.
He said that the Asian region would increasingly play a dominant role by displacing nickel use elsewhere in the world. He suggested that China may become a competitor for nickel producers. Meeting demand could be more expensive than in the past, due to higher energy prices and the fact that in the future, more production will have to come from nickel laterite deposits, which are more capital-intensive to exploit than sulfide deposits.
Nornickel forecasts to produce 250,000 tonnes of nickel in 2006.
Smorgon Steel ends BlueScope talks
Smorgon Steel Group informed that it had ceased talks with BlueScope Steel. BlueScope Steel boughta 19.98% stake in Smorgon sometime in mid August.
Chairman Mr. Graham Smorgon at the company's annual general meeting told that its talks with BlueScope had made little progress.
BlueScope Steel stated that it would not support the merger with OneSteel as proposed. The Smorgon Steel has been working diligently and in good faith in discussions with OneSteel and BlueScope in an attempt to find a negotiated solution. The discussions included granting BlueScope exclusivity in relation to a potential purchase of the Smorgon Steel distribution businesses.
Sighting little progress, Smorgon Steel has decided to cease the talks which would couse further delay and frustration.
Mr Smorgon said that it is not possible to provide a definitive timetable for completion of these matters at this time but they will continue to keep shareholders abreast as progress is made.
Mr Smorgon said that directors supported the merger with OneSteel as being in shareholders' best interests.
US Auto and steel industry dispute
Steel making industry and auto manufacturing are having a bitter dispute. DaimlerChrysler, Nissan, Toyota, General Motors and Ford in an attempt to lift tariffs on imported automotive steel. That might make the foreign steel cheaper than U.S. production, and an alternative for the cost-conscious carmakers.
Steel producers are opposing automakers' move. The steel makers, like AK Steel Corp. and Mittal Steel USA, say the import fees collected at the border are needed. The argument is the fees equalize the price between U.S. steel output and foreign production from six countries that is "dumped" in the United States because it is subsidized by tax money or other incentives.
The U.S. International Trade Commission is set to investigate the matter. A victory for the carmakers would open the door for overseas steel that might sell for less than U.S. producers can match, lowering the cost of making an automobile.
Experts see China steel industry growth slower in coming years - Xinhua Report
China's steel industry, which enjoyed robust growth over the past years, is expected to see a slower growth pace in the next few years, Chinese industry analysts predicted.
The analysts here made the forecast based on China's continuous macro control policies which aimed to rein in the country's overheated economy, predicting that China's fixed assets investment would unlikely surpass the 29.8% growth rate achieved in the first half of this year in the coming few years.
The possible slowing fixed assets investment means that the country's demand for steel would enter a ""slow-growth" period, and the nation's steel consumption is likely to drop below 10%, compared with record 25.7% in 2003 and 10.7% in 2004, said the analysts.
The pessimistic prospect was made despite the fact that China's crude steel output hit 37.68 million tonnes in October, up 18% from the same month last year, according to the latest data.
The country's pig iron output grew 19.2% to 36.15 million tonnes in October, while the steel output reached 41.59 million tonnes, up 23.4%.
At the same time, China's crude steel consumption grew 4.59% in October to 33.73 million tonnes, and the steel consumption increased by 16.99% to 38.73 million tonnes last month.
Latest statistics from the National Bureau of Statistics showed the prices of steel and wire dropped month on month by 4.1% and 0.2% respectively in October.
Besides, the analysts warned that China's booming steel exports would retroact once other countries impose anti-dumping measures against China's steel products.
Analyst Zhou Xizeng believes that the anti-dumping measures will not affect China's steel export in the long run because Chinese steel products are competitive on the international market in terms of production cost.
POSCO already surpasses its targeted cost reduction
POSCO informed that the company has already achieved its targeted cost reduction for this year due to the collective efforts of all staff. The company thanks to reduce costs in every part of the company including sectional operations like materials, maintenance, energy, and others and their daily tasks.
As of the end of October, the POSCO`s yearly cost reductions reached KRW 913 billion, surpassing the originally targeted KRW 889 billion. Those who contributed most to this were the cast iron-making and steel-making departments, which accounted for a 60% share through their efforts to develop cheaper material-based technologies and to reduce energy and maintenance costs.
Mega Y s, the company has achieved KRW 370 billion worth in cost reduction, slightly below the year`s reduction mark in materials and fuels for cast iron and coke making while far surpassing the target for reduction of steel production costs by saving KRW 220 billion, or 14 % of the year`s material budget for that sector.
Such substantial reductions in production costs enabled the steelmaker to maintain its cost status at the level of 2005 and contributed to greater cost efficiencies that are essential for steel companies to confront the increasing needs for alloys in producing strategic steel products through using low cost materials.
Indonesian Government lifts import duty, coal export tax
Indonesian Finance Ministry has lifted import duties on goods and equipment for export tax on coal products to encourage investors to put their money in the country's vast energy resources.
The exemption came into effect on Oct. 16, 2006 and will be valid until July 15, 2007.
Baosteel subsidiary to use environment friendly iron making process
The new plant of the Baosteel subsidiary Baoshan in Luojing, China, is expected to produce 1.5 million tonnes of pig iron per year using the Corex process. Baosteel is currently planning another Corex plant, also with a capacity of 1.5 million tons of pig iron.
The plant is expected to become operational in late 2007.
New process for iron production cuts emissions by 90%
A new manufacturing process developed to make the production of iron in much more environment friendly way. The outstanding feature of the Corex process is that it uses conventional coal instead of coking coal, the customary ingredient. It does not require a coking plant, reducing the discharge of dust and nitrogen oxides by more than 90% and sulphur dioxide emissions by 97%.
In conventional pig iron production at iron works, coking coal is first mixed with charge consisting of pellets, sinter and lump ore, and then the mixture is put into a blast furnace. At the base of this giant, bell-shaped furnace injected hot air burns the coking coal up into carbon monoxide at 2,000 degrees Celsius. In the upper part of the furnace the soaring carbon monoxide withdraws the oxygen from the iron oxide in the iron ore. Because of the high temperature the reduced ore melts to liquid pig iron. As a result of this traditional process with coking plant, powder metal facility and blast furnace, 1.4 kilograms of sulphur dioxide are created for each ton of pig iron. According to measurements taken by the TUV Rheinland, the Corex process sees this figure reduced to only 40 grams and the discharge of dust and nitrogen oxides is cut by more than 90 percent and sulphur dioxide emissions are reduced by 97 percent.
Corex is a smelting reduction process: Coal gasification, iron ore reduction, and liquefaction of the resulting iron are combined in one process. The gases produced can immediately be used for heating or for generating electricity in a gas and steam turbine power plant.
Iran will be self-sufficient in coal next year
Mr Ardeshir Saad-Mohammadi, the managing director of Iran's Minerals Supply and Production Co said that Iran will attain self-sufficiency in coal production next year. Coal production during the past eight months of the current year ending October; hit an all-time record of 640,000 tonnes for that first time in nation's history.
He told that 10.4 million tonnes of iron concentrates has been produced in the country, it is expected that the figure would hit 15 million tonnes by the end of the year. Four coalmines are expected to start production by this year end.
BlueScope Steel may invest in iron mine
Sighting increasing iron ore prices for fourth consecutive year, BlueScope steel may invest in iron ore mine. It would be BlueScope's first iron ore mine. Iron ore prices are expected to rise in fifth year and BlueScope want to secure supplies of raw materials.
TopBaosteel's auto steel plate production may reach 2.5 million tonnes
Baosteel's Automobile steel plates production is expected to reach 2.50 million tonnes this year, the official Xinhua News Agency reported.
Xinhua said Baosteel's share of the cold-rolled auto steel plates market has grown to more than 50 pct in China, with sales at over 2 million tonnes as of today.
