TATA Steel expects to close Corus acquisition in January

TATA Steel expects to complete the acquisition of Corus by the middle of January 2007. Mr B Muthuraman MD of TATA Steel said that the extraordinary general meeting of the company would be held on December 4 and the deal was expected to be through by mid January.

Tata Steel would require support of half of the Corus shareholders present at the AGM and 75% of shares in value. Mr B Muthuraman clarified that the company wanted 100% of Corus but had stipulated a condition of 75%. He said We want it to be a part of Tata Steel.

Mr Muthuraman said that TATA Steels offer represents a fair value of the enterprise and that Corus shareholders response was positive. He said there were a lot of synergies between Tata Steel and Corus in the areas of marketing, manufacturing, logistics and distribution, adding that profitability margin of both the companies would go up after acquisition.

Iron ore rich states up in arms against Hooda recommendations

During the 28th meeting of mineral advisory council, mineral rich states Chhattisgarh and Karnataka have opposed any move to curb their powers by transferring their right to award mining lease to the Centre in case of delays in the process. These states said that such a move impinges upon the inherent and mandated powers of the states for management of minerals owned by them and therefore would be opposed.

Mr HD Kumaraswamy chief minister of Karnataka told the advisory council meeting that "This recommendation will have serious implications and therefore cannot be accepted by the state. Mr HD Kumaraswamy also opposed the proposed policy saying The government of India has claimed that we have reserves sufficient to last a century and therefore no restrictions need to be placed on export of these resources. Clearly this is not an argument that can be advanced to maintain the status quo regarding the mining policy."

Mr Raman Singh chief minister of Chattisgarh demanded ad valorem royalty at 20% of the sale price of minerals and backed up this demand with a warning that finalization of the new National Mineral Policy and effecting changes in laws governing the mines and minerals sector would be useless without a consensus between the Centre and the mineral-producing states. Mr Singh criticized the recommendations of the Hoda Committee constituted by the Planning Commission, saying issues like handling of delays in disposal of mineral concession applications had not been settled. Mr Raman Singh also suggested that ministry of mines should set up a group in the ministry including representatives of the states and the industry to arrive at a consensus before finalization of the mineral policy.

Mr Naveen Patnaik chief minister of Orissa also opposed the committees recommendations, saying its suggestions on grant of reconnaissance permit, prospecting license and mining lease would help big mining companies and hamper the establishment of value addition industries in mineral rich states like Orissa. Mr Patnaik said export of iron ore having over 60 per cent Fe content should be restricted, and gradually, export of the ore banned.

The Hoda Committee on National Mineral Policy in its recommendation has suggested that Mines and Minerals (Development and Regulations) Act should be amended to prevent states to sit on mining lease applications. It has recommended that if states do not take a decision on granting lease within a period of six months, the lease application would automatically come to the centre for clearance bypassing the states.

Mr Muthuraman calls for preserving iron ore

TATA Steel has again called for stopping iron ore exports citing the position of iron ore reserves in the country and the potential for steel production and its consumption in India.

Mr B Muthuraman MD of TATA Steel while speaking at a news conference to announce international meet on auto steel said that India's potential for steel production and consumption was huge and it would be inappropriate to export iron ore. He said "No country in the world which has potential for steel production exports iron ore.

Indian iron ore exports to China to go up by 12% in 2006-07

Mr RK Sharma secretary general of the Federation of Indian Mineral Industries said that Indias iron ore exports to China may touch 83 million tonnes during 2006-07 recording an increase of 12% YoY over 74.13 million tonnes in 2005-06.

Mr Sharma said that 24.08 million tonne of iron ore was exported to China during April to June 2006 as against 20.56 million tonnes during April to June 2005-06 recording a growth of 17.12 YoY%

Dr Kalam calls for renewal energy sources for sustainable development

Dr APJ Abdul Kalam president of India, while Inaugurating the 5th World Wind Energy Conference cum Exhibition in New Delhi emphasized the need to look for renewal energy as that alone can ensure sustainable development.

Dr Kalam said that the whole world is celebrating unprecedented momentous upward surge economically, technologically and scientifically. He said We also realize that the world is on a slippery slope as far as energy is concerned. Fossil fuels that have been contributing almost the whole energy required for the worlds sustenance and progress are unfortunately finite and the rate at which they are being tapped, the world may not see another 100 years to continue their exploitation.

Dr Kalam referred to the Sun, the Sea, the Wind and the regenerating Nature around us and suggested to evolve a policy and a concerted plan of action to tap them on a mode of emergency mission. He said that over 7000 long coast line can help us to generate wind energy units.

World Wind Energy Association in association with Indian Wind Energy Association organized this 3 day Conference and about 400 delegates are participating.

CCCMC prices for Indian iron ore imports on 6th November

The China Chamber of Commerce of Metals, Minerals and Chemicals Importers and Exporters has released the average reference prices for import transactions of Fe 63.5% Indian iron ore concluded last week.

The change is in comparison with CCCMCs reference price posted on October 30th for week previous to that.

The CCCMC reference prices are average prices for import transactions of Fe 63.5% Indian iron ore concluded the week prior to issuance date of such reference prices. The reference price practice is intended to regulate the domestic trading of Indian iron ore and avoid speculation.

(Sourced from Mysteel.neT)

IIM organizing auto steel international meet on November13th

As part of the National Metallurgists Day during its Diamond Jubilee celebrations, the Indian Institute of Metals in association with TATA Steel is organizing a 3 day international symposium on steels for automotive sector in Jamshedpur during November 13th to November 15th 2006.

About 800 delegates are expected to participate in the meet. Altogether 12 papers, including 9 from overseas participants would be presented along with 3 from India

Mr B Muthuraman MD of TATA Steel told media that students from the IITs and regional engineering colleges have also been invited to submit papers on metallurgy at the symposium and there will be a rolling Tata Steel Centenary Award for the best college.

JSL to delist from Delhi, Ahmedbad, Chennai & Kolkata

Jindal Stainless Ltd has informed BSE that the members at the 26th Annual General Meeting of the Company held on September 29th 2006 have also accorded to delist the equity shares of the Company from the stock exchanges at Delhi, Ahmedabad, Chennai & Kolkata, subject to necessary provisions & approvals.

Jindal Saw secures clarifies ONGC order status

Jindal Saw Limited announced securing orders for more than INR 200 crores for the supply of pipes from its various domestic and international clients.

According to an earlier release by the company, it was indicated that it had bagged an order of Rs 115 crores from ONGC. The Company has clarified that its status in ONGC's Rs 115 crore offer is that of L1 bidder only.

Jindal Saw Ltd is a leading maker of SAW pipes primarily used for transportation of oil and gas, with integrated facilities at multiple locations. It also has two affiliates in USA, Jindal United Steel Corporations and SAW Pipes USA. It is manufacturing large diameter submerged arc welded pipes and spiral pipes and bends for energy transportation sector; carbon, alloy and stainless steel seamless tubes manufactured by conical piercing process for industrial application and ductile iron pipes for water and sewage transportation.

Arcelor Mittal appoints Mr LN Mittal as CEO

The board of directors of Arcelor Mittal announced the re organization of the companys senior management structure. The board of directors has unanimously appointed Mr LN Mittal as the new CEO with immediate effect. Mr Mittal will continue in his role as President of the Board of Directors. Mr Roland Junck has stepped down as CEO but will remain a member of the Group Management Board with his existing portfolio and additional responsibility as advisor to the CEO.

The GMB will now comprise Mr LN Mittal, Mr Aditya Mittal, Mr Roland Junck, Mr Michel Wurth, Mr Gonzalo Urquijo and Mr Malay Mukherjee. Mr Davinder Chugh will retain his operational functions, reporting directly to the CEO.

Mr Joseph Kinsch chairman of the board of directors said We are making these changes to clarify the leadership of the company. It had become clear over the past months that the interests of the company were not best served by the previous structure. I believe these revised arrangements are in the best interest of all stakeholders. Mr Mittal is one of the most experienced and successful executives in the steel industry and the Board are confident his leadership will deliver the considerable potential of Arcelor Mittal.

Mr Roland Junck said I believe this clarification of the leadership arrangements of Arcelor Mittal is in the best interests of all parties. I remain convinced of the great potential of Arcelor Mittal and as a continuing member of the GMB I will be lending my full support to both Mr Mittal and the company to ensure this potential is realized.

Mr LN Mittal president and CEO of Arcelor Mittal added that The overarching priority for Arcelor Mittal is to successfully integrate the two companies and deliver the merger synergies and benefits. This is the key focus for the Group Management Board and me, and one I am confident we will achieve. I am very pleased that Roland will continue to be a part of this effort as a member of the GMB and as a special adviser to me. The past three months have served to increase our confidence in the strategic rationale of combining the two companies. I remain very excited about our future prospects.

CVRD to divest stake in Usiminas and join its board

Brazilian steelmaker Usiminas has reshuffled its ownership structure by CVRD a seat on its board. This restructuring is associated with the decision of the Usiminas controlling shareholders to realize a feasibility study regarding the construction of a slab plant, maximizing the company's potential to lead the repositioning of the Brazilian steel industry in the global scenario.

CVRD said in a statement that it would reduce its holding of voting shares in Usiminas as part of the restructuring but gain a seat on the board. CVRD will cut its voting stake in Usiminas to 5.9% from 22.99% by selling shares to Nippon Steel and to two Brazilian firms, conglomerate Votorantim Participacoes SA and construction giant Camargo Correa SA. Votorantim and Camargo Correa will each hold 11.6% of Usiminas' voting shares.

CVRD currently owns 25,810,728 Usiminas common shares, which represents 22.99% of total common shares and 11.46% of its total capital. The Company will keep 6,608,608 Usiminas common shares, which will be tied to the new 15 year shareholders agreement of Usiminas signed.

CVRD will sell, at the price of R$ 70.59 per Usiminas common share, 2,104,988 shares to Nippon Steel, 1,628,970 shares to Votorantim Participacoes S/A and 1,628,970 shares to Camargo Correa S/A, totaling 5,362,928 common shares, or R$ 378.6 million. The price of R$ 70.59 per common share is the average price for Usiminas's preferred shares traded on the Sao Paulo stock exchange (Bovespa) in the last 90 days prior to April 15, 2006.

Therefore, the remaining 13,839,192 Usiminas common shares that CVRD currently owns will be sold through a public offer that will be announced soon.

CSN sweetens bid for Wheeling-Pitt

Brazil's Companhia Siderurgica Nacional SA has announced a new sweetened offer for Wheeling-Pittsburgh adding a cash alternative for investors. Mr Marcos Lutz MD for infrastructure and energy of CSN said that the plan is a response to shareholder concerns.

Under its new offer shareholders could elect to receive either common shares in the new company or a depositary share that requires CSN to pay $30 per share in cash four years after the acquisition, or a combination of both.

CSN had already offered to commit $225 million to Wheeling-Pittsburgh in exchange for a 49.5% stake on a reconfigured company, while existing shareholders would get the other 50.5%. The CSN investment will eventually convert to 11.8 million shares, or 64 % of the new company, provided that the United Steelworkers union agrees. If the union rejects that deal, the $225 million becomes debt.

Mr James G. Bradley chairman and CEO of Wheeling-Pitt said "This alternative provides shareholders an opportunity to cash in on some of that value today at a significant premium to the current stock price if they so choose.

The move comes just two weeks after Esmark Inc revised its own unsolicited offer for Wheeling-Pittsburgh. Some large investors have joined the United Steelworkers union in publicly opposing the CSN deal and backing the takeover by Esmark.

Arcelor Mittal expects stable global market for steel

World's biggest steelmaker Arcelor Mittal expects market prices to stabilize as production cuts in the industry help reduce inventory overhangs.

Mr Roland Junck said "The rate of production increase that we expect in 2007 should slow down a little bit due to low profitability of the Chinese activities and the investment of Chinese producers more in value added products. We should expect a positive impact on the inventory levels in the coming months. And also due to the improved situation in Asia we should see less pressure from imports, so we expect that the price situation could be stabilized in the relative short term.

Mr Aditya Mittal said "We are not planning any more volume cutbacks and we expect to maintain our guidance for the fourth quarter. We are not giving out a number as such but what we are saying is that compared to third quarter, shipments will be down or equal. We are not expecting cuts to continue into the first quarter. We expect it to be a fourth quarter phenomenon. In terms of the production cuts we believe they should balance the market. There is not that much of an inventory overhang situation as well in US. We should not overplay the situation".

Mr Michel Wurth head of flat products Europe on the situation in Europe said "At the end of the third quarter on average we can see that inventories have come to an almost normal level, maybe a bit higher than normal level, but it is not growing. What is happening now in the fourth quarter is that there are huge imports coming in, in particular from China, and it is in fact imports and the products which are imported that are causing the situation of oversupply. For the first quarter of next year we foresee the same scenario in the sense that we have decided to have an earlier relining than foreseen in the second big blast furnace in Spain so that in the first quarter we will be lower on the market than what had been foreseen and in the end we will be monitoring the inventory situation very closely with our customers."

Steel consumption by Chinese construction sector add to 50% plus

China's construction industry totally consumed 173 million tons, accounting for 50.55% of the nation's total steel product consumption. A report namely "Proportion of Construction Steel Consumption against Total Steel Consumption (by Country) in 2000" provided by a research group under IISI showed that the proportion was much higher in developing countries than in developed countries.

There were about 131.17 million tons of steel products applied to building construction in 2005, up 61.08 million tons from the level in 2001, including 60.91 million tons of steel products applied to house building, up 35.39 million tons from the level in 2001.

Volume of steel products consumed in construction industry increased by 98.17 million tons in 2005 when compared with that in 2000, representing average rise of 19.63 million tons per year during 10th Five-Year Period.

By 2010, the consumption, formerly estimated to rocket up by 53 million tons to 226 million tons (10.6 million tons per year on average), is expected to soar up by 85.5 million tons to 258 million tons, corresponding to average rise of 17 million tons per year. Steel consumption in construction industry will continue to climb up with lower growth rate during 11th Five-Year Period. And the continuously increasing demands for housing will keep on encouraging investments in real estate industry.

During 2001-2005, China's fixed asset investment for municipal construction was close to 2000 billion Yuan, accounting for 6.7% of the nation's total fixed asset investments. Chinese government will continue to invest over 200 billion Yuan to develop inter-city rail transit.

China's hot rolled H beam outputs surged to hit some 3.173 million tons in 2005 from 725 thousand tons in 2001, up 338%. In the mean time, the nation's imports began shrinking while exports boomed up. By now, demands for H beam remain steady growth. By 2010, about 9 million tons of H beam will be required for construction while the nation's H beam capacity will reach some 9.55 million tons.

(Sourced from Mysteel.net)

Usiminas announces Nippon deal

Brazilian steelmaker Usiminas has announced additional stake for Nippon Steel in the company.

Usiminas said that the Nippon Steel Corp would buy a 1.7% voting stake in the Brazilian company. Nippon Steel is already a major shareholder in Usiminas through its Brazilian subsidiary Nippon Usiminas.

The Nippon Steel deal is estimated to be worth $146 million based on Usiminas' market capitalization of $8.6 billion and with this move Nippon Steel will increase its voting stake in Usiminas to 24.7%.

On the other hand, Nippon Steel Corp has declined to comment on a report. A Nippon Steel spokesman said Nippon Steel and Usiminas are always discussing options that are mutually beneficial, but nothing has been decided. We do not comment on a specific issue that is being discussed.

Coal mine blast kills 17 & 30 missing in Shanxi province

Xinhua news agency has reported that 17 miners were killed when a gas explosion tore through a coalmine in northern China and dozens were missing. The blast hit the Jiaojiazhai mine at 11AM in coal rich Shanxi province on Sunday.

By late yesterday, rescuers had found 17 bodies and 30 were still trapped in the mineshaft with their fate unclear. Another 346 miners working underground at the time of the blast managed to escape.

The mine belongs to the Xuangang Co under the Datong Coal Mine Group Co in Xinzhou a city about 80 kilometers north of the provincial capital Taiyuan.

An investigation into the cause of the blast continued last night.

AHMSA may file AD suit on steel imports from China

It is reported that Altos Hornos de Mexico and a Mexico steel plant plan to file an AD suit on steel products imported from China. A senior official from the steel plant stated that they would submit the petition to Mexico's Ministry of Economy.

Steel products likely to subject to the suit include cold rolled steel sheet, hot rolled steel sheet and steel wire rod. Besides, general manager of AHMSA also said to file an AD suit on HRC and CRC in November.

They complained that China-origin steel products, putting negative influence on local market prices, greatly damaged economy in Mexico. The senior official from the plant disclosed that Mexico's Ministry of Economy had already paid highly attention on steel products imported from China.

(Sourced from Mysteel.net)

Esmark comments on CSNs Revised Offer for Wheeling-Pitt

Esmark Incorporated released the following statement from its CEO Mr James P. Bouchard regarding changes to Companhia Siderurgica Nacionals proposal for Wheeling-Pittsburgh Corporation announced.

Mr Bouchard said With their latest proposal, CSN and Wheeling-Pitt management have done nothing more than engage in financial trickery in order to mislead and confuse shareholders. This is a blatant attempt at purchasing an American steel producer with a mask and a gun.

He said When you factor in a more realistic valuation of $150 million for the Heartland facility that CSN is contributing, a facility that we believe is not profitable and assume that shareholders exercise their full allotment of B Shares, coupled with the $225 million of convertible debt fully exercised, CSN is buying 33.6 million shares of Wheeling-Pitt and control of the Company for $16.00 per share. If you value Heartland at $74 million that CSN actually paid for the bankrupt facility, CSNs actual purchase price is $13.74 per Wheeling-Pitt share.

He added that Unlike Esmarks proposal, CSNs new offer continues to be highly dilutive to existing shareholders and does not improve but continues to saddle Wheeling-Pitt with massive debt. It is also telling that neither Wheeling-Pitts current management team nor CSN have pledged to maintain the companys employment levels, in essence opening the door to further layoffs.

Mr Bouchard concluded that We dont believe shareholders will be fooled by the fuzzy math of CSN and Wheeling-Pitt management and allow them to be robbed of a company that, with a committed partner such as Esmark, could become one of the best steel companies in the world.

RBCT estimated to export64.1 million tonne of coal in 2006

It is reported that the coal exports from South Africa's Richards Bay Coal Terminal fell to 5.74 million tonnes in October 2006 from 7.12 million tonnes in September 2006. However, the report mentions that September's exports were unusually high because RBCT was shut for the last week of August due to severe weather and exports were carried over into September.

The coal exports during January to October totaled to 53.53 million tonnes and it is projected that RBCT will export about 64.1 million tonnes of coal during 2006.

RBCT's export capacity is 72 million tonnes a year. The terminal has been unable to reach its full export capacity in 2005 or this year due to rail and production problems. RBCT will increase its export capacity to 92 million tonnes a year in 2009 under its Phase V expansion plan.

Arcelor Mittal board committed to sell Dofasco

As per reports citing a spokesman for Arcelor Mittal, the board of Arcelor Mittal is committed to selling the company's Canadian unit Dofasco. The spokesman said. "The board of Arcelor Mittal is committed to sell Dofasco and the stichting (foundation) is aware of this.

The president of the board and new CEO Mr LN Mittal said in a conference call on Monday that the board had made a decision on the matter but did not specify what it had decided. He told during a telephone news conference " As we have explained before, the board has taken a decision and the board has informed the foundation and now the stichting has to work on this and they have to take their decision in the interests of all the stakeholders.

Mittal Steel while merging with Arcelor had said that post merger it would sell Arcelor's Dofasco to ThyssenKrupp but Arcelor managed to restructure Dofasco by putting it in a Dutch foundation making it.

Baosteel signs long term contract with KKKT for iron ore shipments

Baosteel has recently signed long term shipping contract with Japan's Kawasaki Kisen Kaisha Ltd. Prior to that, it has signed 3 year contract for Brazil route in 2003, when the freight rates started to present strong uptrend.

As one of the world's leading shippers, Kawasaki Kisen Kaisha ltd. KMT has over 60 large vessels, mainly carrying container, bulk cargo, oil and chemicals etc.

(Sourced from Mysteel.net)

Severstal's IPO order book full report

Interfax citing a source in banking circles reported that the order book for shares that Severstal is offering in its IPO is full and the order book should be closed next week. The source said "Investor interest exceeds the offer." Various sources have said the placement will be closed on November 7.

Severstal has set a price range of $11-$13.5 per share and GDR. This would value the Severstal at $10.24 billion to $12.57 billion.

The placement will consist of an offer of existing common shares and GDR to international institutional investors outside the Russian Federation, and an offer of common shares in Russia. Source said that the company could place between 10% and 15% of its shares on the LSE.

Citigroup, Deutsche Bank and UBS Investment Bank are the joint global coordinators and book runners and Frontdeal Limited will sell the shares.

Severstal's capital is currently 9.3 million rubles, consisting of 930,784,663 common shares, par value 0.01 rubles each. After the placement Severstal plans to increase its capital with a public subscription for additional common shares. The Russian Federal Financial Markets Service registered an additional issue of 85 million shares on October 17.

At the moment Mr Alexei Mordashov, the chairman of the board of directors, controls about 90% of Severstal. It is anticipated that Mr Mordashov will buy the additional share issue. The issue will increase the company's charter capital by 9.1%.

Severstal has said it planned to use the proceeds from the IPO to bolster its operating and financial performance and to acquire new assets.

AK Steel & workers to resume talks on November 16th

AK Steel and Machinists union negotiators will return to the bargaining table November 16th.

Union workers have been locked out since March 1 and have twice rejected company offers. After the second rejection, by more than a 2-to-1 margin, the company pulled back some enhancements in a subsequent contract offer. Both sides last met on October 19th.

AK Steel has been operating the mill with about 1,800 replacement workers and salaried personnel as compared with about 2,500 hourly production and maintenance workers.

Anglo Coal settles dispute on prospecting rights

It is reported that Anglo Coal had settled a legal dispute with the department of minerals and energy over a refusal to grant coal prospecting licenses.

Anglo said "Anglo Coal has issued judicial reviews in respect of some of its applications but they were resolved or are in the process of being resolved. The courts were therefore not approached for any final decisions."

Anglo had said on September 21st that it had issued writs to stake a claim on the disputed licenses while talks with the government continued.