April, 12 2007
ABG Shipyard bags order from Essar
ABG Shipyard announced that it has bagged a USD 139.0 million order for constructing a 4 of 54,000 DWT supramax bulk carriers from Essar Shipping & Logistics in Cyprus as a part of its ship acquisition programme. The delivery period of the vessel is by March 2011.
Essar Shipping & Logistics is a Cyprus based subsidiary of Essar Global.and is a leading sea logistics solutions provider involved in sea transportation, logistics management, transshipment and activities relating to ports and terminals.
Tuticorin Port posts 5.03% YoY growth in cargo traffic in 2006-07
The Tuticorin Port handled record cargo traffic of 18.00million tonne in 2006-07 up by 5.03% YoY as compared to 17.13 million tonnes during 2005-06. Imports accounted for 13.50 million tonnes and exports 4.49 million tonne.
Mr NK Raghupathy chairman of Tuticorin Port said that record traffic has been achieved despite a decline in the volume of coal imports by Tuticorin thermal power station by 0.53 million tonne and that by 0.34 million tonne of fertilizer raw materials by SPIC.
Cement sectors coal allocation up by 15% for April to June
FE reported that the standing linkage committee attached to the coal ministry has increased the monthly allocation by 15% to 1.057 million tonnes per months for April to June quarter from 0.921 million tonnes per month during January to March quarter for cement industry.
The linkage committee has increased the coal linkage to 435,000 tonnes per month for April to June 2007 from 309,170 tonnes per month during January to March quarter for Southern Region. The coal linkage for Northern Region is at 119,398 tonnes, Eastern Region at 175,288 tonnes, Western Region at 120,000 tonnes and Central Region at 197,600 tonnes. In other words the almost the entire increase in allocation of 135,830 tonnes per month is meant for Southern Region.
Cement manufacturers have projected a cement production target of 173 million tonnes for 2007-08, asking for additional 13 million tonnes of coal.
Lanco Infratech to set up 2 power projects in Indonesia
Hindustan Times reported that Lanco Infratech is planning to set up 2 power plants at Bali and in south of Sumatra in Indonesia at an investment of USD 400 million. The report cites Mr L Madhusudhan Rao chairman of Lanco Group as saying that It hopes to set up two projects, each with a capacity to generate 200 MW in that country.
As per reports, Lanco is competing with Korean and Malaysian power firms for the projects. The projects will have coal linkages from the mines and are not coal pit head projects.
Lingaraj coal mine workers protesting against outsourcing
Statesman News Service reported that workers of Coal India Limiteds Mahanadi Coalfield Limiteds Lingaraj Coal mine wore black badges boycotting the 16th foundation day of Mahanadi Coalfield Limited in a protest against the privatization decision of the overburden removal works of the mine. However the mine production was not affected.
Lingaraj workers are protesting after MCL management floated tender in newspaper to hand over the overburden works to private parties. Central trade unions shedding their union affiliations formed a joint action committee to fight the move at all costs.
As per report, workers last week marched to the general managers office and presented a memorandum to paralyze not only Lingaraj but all the mines of the company if the decision to privatize is not cancelled.
India stainless prices might be up by 7%
It is reported that nickel price has reached more than USD 49,000 per million tonnes on the LME last week, almost double since January 2006. The stainless steel industry in India might also increase stainless steel prices by 7%.
According to the Indian Stainless Steel Development Association, the final product prices might have a price rising range from about INR 5,000 per ton to INR14,000 per ton. The Indian industry has asked the Ministry of Finance to cancel the 5% import duty for nickel.
Its also expected that the nickel supply will keep tight due to the strong market demand till 2010.
Vizag Port aiming for 100 million tonnes by 2012
It is reported that Visakhapatnam Port has plan to spend INR 3,035 crore during the 11th 5 Year Plan period to expand the cargo handling capacity to 100 million tonne from the existing 55 million tonne.
Mr K Ratna Kishore chairman of Visakhapatnam Port told media persons that The port has set a cargo handling target of 85 million tonne for the year 2012, but is confident that it can handle much more and hence has decided to upgrade the facilities to handle up to 100 million tonne.
Mr Kishore added that Of the total requirement of INR 3,035 crore, the port would raise INR 1,396 through internal accruals. It would mobilize INR 1,085 crore for BOT berths and INR 554 crore for HPCL facilities. He added that VPT plans to spend INR 273 crore during 2007-08 on different projects.
Viazg Port has retained number 1 slot among all the major ports in India by handling 56.39 million tonne during 2006-07 as against 55.8 million tonne in 2005-06.
L&T to set up a new ship building yard
HT reported that Indias largest engineering firm Larsen & Toubro will set up a INR 15000 crore major state of art ship building yard in a 1000 acre Greenfield project to be located at Chennai, Kakinada or Mundhra.
A L&T official said that We will announced details in one or two months. The L&T would have the capability of manufacturing any types of ships including frigates and destroyers for Navy and Coast Guard.
HEC records net profit of INR 11.09 crore in 2006-07
It is reported that Heavy Engineering Corporation has earned gross profit of INR 18.08 crore and net profit of INR 11.09 acre in 2006-07.
Mr Venugopal director personnel of HEC told media that both the production and sales figures of the company registered an increase of around 70% in 2006-07 as compared to 2005-06. He added that the achievement has been significant, especially after a prolonged lean period that had seen HEC reaching the verge of closure.
CIL saddled with stocks as power sector goes back on promises
FE reported that Coal India Limited is saddled with large stocks of coal as the power utilities have failed to lift the coal as per their projected demand for 2006-07 although some the of the power plants have blamed CIL for not being able to supply enough coal to help them meet their generation targets. CILs stocks have increased by 10.04 million tonne to reach 42.91 million tonne as on March 31st 2007.
Coal off take by consumers has been 350.90 million tonne in 2006-07 up 17.24 million tonne over 2005-06. But the power sectors off take increased by only 4.98 million tonne YOY while its share in the total off take is more than 75%.
Mr K Ranganathan marketing director of CIL told FE that the power sector gave a demand requisition of 272 million tonne for 2006-07 but its off take was 261.42 million tonne, because of which CIL has been saddled with excess stocks. He said that "The power sector's incremental off take of 4.98 million tonne is only 29% of the incremental off take of 17.24 million tonne, which should have been more considering the share it commands in the total off take.
Mr Ranganathan said that CIL has made clear that for the fiscal 2007-08, it would not be able to give more than 305 million tonne to the power sector, although demand projections are higher.
On the other hand according to a power ministry report, the economy lost 1.65 billion units in 2005-06 due to short supply of coal.
US Steel forms JV with two S Korea companies
The Pittsburgh based United States Steel Corp announced that it has formed a USD 93 million JV with two South Korean companies Posco and SeAH Steel Corp to build a new domestic plant that will produce spiral welded pipe for the natural gas industry. The new JV will be called United Spiral Pipe LLC. The announcement comes less than a week after US Steel said it plans to buy Lone Star Technologies Inc.
The company in a statement said that the JV gives US Steel a foothold in the North American large diameter line pipe market, which has seen demand grow after the recent announcement of new natural gas transmission projects. Mr John Armstrong a spokesperson of US steel said that Spiral welded pipe would be a new market for us.
As per report the companies plan to build a new manufacturing facility in Pittsburg Calif capable of producing 300,000 net tons of spiral welded tubular pipes annually. US Steel and Posco will supply the mill with hot roll coil and the joint venture will be responsible for marketing the finished products. Production of the pipe is scheduled to begin in 2008.
Under the terms of the deal, US Steel and Posco each will hold a 35 % ownership stake, while SeAH will take a 30% interest. Profits from the venture will be shared among the partners according to their ownership percentages.
US Steel is one of the largest US steelmaker that will be able to produce about 2.8 million tons of tubular steel in North America annually after its acquisition of Lone Star is completed in the second quarter of 2007.
Baosteel profit jumps by 150% in the Q1 of 2007
China Daily reported that Baoshan Iron and Steel Co Ltd posted a 150% net profit jump in the Q1 of 2007. The company in a statement to the Shanghai Stock Exchange said that the jump is mainly due to the rising steel prices in China and BaoSteel's continuous efforts to reduce operational costs and improve the product structure. The details of the report will be released on April 26th.
Baosteel shares surged 4.2% to close at CNY 10.99 on Tuesday. Analysts said rising steel prices and the relatively lower price to earnings ratio in the steel sector would push up steel stocks in the coming months.
Mr Yang Baofeng an analyst at Orient Securities said that "Steel companies net profits in the first quarter will increase substantially, boosted by the international steel price rise. The price of hot rolled coil jumped 21% in the Q1 0f 2007 while cold rolled coil climbed 8%. He said that but steel prices in China are expected to remain stable this year.
Baosteel's net profit increased 2.7% last year to CNY 13 billion while its earnings per share stood at CNY 0.74. The company aims to increase production capacity from 20 million tons to 50 million tons by 2012 and is seeking acquisition of small steel companies after buying out Bayi Iron and Steel Co Ltd at the beginning of this year, Baoshan President Mr Ai Baojun said recently at stock.p5w.net.
Angang Steel profit up by 236.2%
Angang Steel net profit rose to RMB 7.09 billion by international accounting standards, up by 236.2% from RMB 2.11 billion 2005. Earnings per share amounted to RMB 1.20 last year, almost doubling from RMB 0.70 in 2005.
Its turnover surged 106.1% to RMB 54.59 billion last year, by mainland accounting standards, after Angang started booking contributions from the assets it acquired in January.
The acquisitions helped crude steel output jump 348.7% to 15.16 million tons and steel products output rise 131.9% to 14.02 million tons.
Angang has a 10.3% share of the mainland's cold rolled steel products market, as well as a 9.1% market share in hot rolled steel and 29% in silicon steel.
Nippon Steel JV to expand output in China
An industry source reported that Nippon Steel Corp China's Baosteel Group Corp and Arcelor Mittal have agreed to expand production capacity at their JV in China.
As per report the head of the three companies met in Shanghai and agreed to boost capacity at Baosteel-NSC/Arcelor Automotive Steel Sheet Co in response to strong demand for automotive steel sheet in China. The venture has been operating at full capacity as Japanese car makers such as Honda Motor Co Nissan Motor Co, and Toyota Motor Corp. are stepping up production in the country, and there have been requests from automakers to boost output. BNA is 50% owned by Baosteel, 38% by Nippon Steel and 12% by Arcelor Mittal.
The Nikkei business daily reported earlier the companies would likely invest about CNY 50 billion (USD 418.9 million) to double output capacity by adding new production lines, and the operation could start in 2009.
Japanese automakers in China currently import most of their steel from Japan, citing the inferior quality of locally made products, and are keen to see Japanese steel makers set up shop and raise output in China to lower production costs.
Jordan Steels new meltshop to start by May 2007
It is reported that the volume of the sales of Jordan Steel Company amounted to 181,000 tons in 2006 up by 8.3% YOY as against 167.000 tons in 2005.
The volume of the consumption in the domestic market amounted to 600,000 tonnes in 2006 up by 20% as against 500,000 tonnes in 2005. Jordan Steel Company enjoys domestic market share of 27%. It also exported 40,000 tonnes in 2006 against 35.000 tonnes in 2005.
Mr Imad Badran GM of Jordan Steel Company said that it is planning to increase its production up to 180,000 tons in 2007. The company expects to finish setting up of the meltshop, the construction of which was initiated in 2005. It is supposed to come on stream in May 2007 of this year. The billet production capacity of the meltshop is 250,000 tonnes per year.
Commercial Metals' Swiss unit bids for Croatian steel mill
US based Commercial Metals Co has recently announced that its Swiss subsidiary bid USD 28 million to acquire a Croatian steel mill in preparation for Croatia's expected membership in the EU in 2009.
The bid is for an electric arc furnace steel reinforcing bar mill with a wire mesh facility, which has about 170,000 metric tons of rebar capacity and 30,000 tons of mesh capacity.
Comprehensive report on Indian steel sector
The Indian steel industry is poised for massive expansion. Dramatic consumption growth over the last few years has stimulated enormous expansion plan, facilitated by unexploited iron ore raw material base. India is now being hailed as the new China, where crude steel production soared from less than 100 million tones in 1995 to over 400 million tones in 2006.
Indian crude steel output at just 38million tonnes in 2005 is starting from a much lower base, and the economic steel- consuming structure of China is substantially different from India. Nevertheless, India has recently established a long-term goal of raising crude steel production to 100 million tonnes per annum by 2020.
UK based GFMS Metals Consulting in an innovative way and value for money report on Indian steel industry includes complete statistical coverage of the industry, an unbiased and frank assessment of growth expectations, a base case outlook for each steel product & the industry as a whole with a clear view of potential risks, an assessment of raw material availability and trends and production, trade and consumption forecasts out to 2011.
The report coverage includes historic production, trade & apparent consumption of carbon steel both long and flat products, raw materials, producers, economic environment, political and other risk factors.
If you are interested to know more about it please visit http://www.steelguru.com/GFMS_MC/indian_steel_report.php or send a mail at research@steelguru.com
Mincor starts mobilizing for North Dordie open pit nickel mine
Kambalda based nickel producer Mincor Resources NL has commenced site preparations for open pit mining of its small North Dordie ore body, located 1 kilometer west of its operating Miitel underground nickel mine. The new project is expected to generate about 500 tonnes of nickel in concentrate over its life, which is estimated at 5 months.
Mincor said it expected to mine some 60,000 tonnes of ore at 1.2% nickel from the North Dordie ore body. Pre stripping and stockpiling of non recoverable oxide material would take about one month, followed by four months of open pit production, with the project expected to terminate during August.
It has also carried out detailed negotiations with its offtake partner, BHP Billiton Ltd regarding the delivery of the open pit ore to the concentrator plant at Kambalda. The decision to proceed follows a review of the original 2003 North Dordie feasibility study. Mr David Moore MD of Mincor said the negotiations with BHP Billiton had reached a mutually satisfactory conclusion, representing the final key to unlocking the development of the project.
Mincor has since awarded the open-pit mining contract for North Dordie to Mining and Civil Australia Pty Ltd, which is currently mobilizing the site.
Taigangs 2006 net profit surge by 212% YoY
Taiyuan Iron and Steel Groups Shenzhen listed subsidiary Shanxi Taigang Stainless Steel Co Ltd announced net profit increase of 212.04% to CNY 2.42 in 2006 as a consequence of listing assets and capacity expansion. Its core revenue also rose by 68.78% YoY to CNY 40.09 billion.
Last year Taigang Stainless purchased a series of major assets from parent company Taiyuan Steel and commissioned an integrated 1.5 million tonnes per year stainless production project. Both moves expanded business operations and contributed to the profit increase. Soaring stainless steel prices in the last quarter added to the profit rise.
Taigang Stainless's steelmaking assets including an iron smelting plant a coking plant 2 steel smelting plants 2 rolling plants and a hot continuous rolling plant It partially commissioned 1.5 million ton stainless line and also contributed to net profits and produced 3.99 million tons of pig iron 5.39 million tons of steel, 1.11 million tons of stainless steel and 6.13 million tons of steel billet in 2006.
Taigang Stainless plans to raise its steel production by 81.7% to 9.8 million tons in 2007. This includes the production of 2 million tons of stainless steel up by 80.2% YoY.
Illich considering a coking coal JV
Ukranian Journal last month reported that Ukraines 2nd largest steel producer, Illich Steel, is at the final stage of creating a JV that would help the company to meet demand for coking coal.
The report mentions that Ukraines Anti Monopoly Committee has given its permission for Illich Steel to create the coking coal joint venture with Donetskstal.
Mano River update on Putu Range iron ore project in Liberia
Mano River Resources Inc has last month provided an update on progress from its 80% owned Putu Range iron ore project in eastern Liberia.
The release said that
1. Historic reports indicated a 500 million tonne potential for Mt Jide
2. Up to 67.3% Fe from outcrop grab samples and 59.3% Fe from first 26m of historic adit
3. Pre feasibility study with 4,000 meter of drilling planned to commence in 2007
4. Sampling commenced on the second ridge Mt Ghi
5. Optimal exploration and development options under consideration
The Putu Range project is centred within a three year exploration licence awarded in May 2005 to Mano River Iron Ore (Liberia) Inc which covers an area of 425 square kilometer in Grand Gedeh County of Liberia. The deposit is approximately 200 kilometer south east of the 1 billion tonne Mt. Nimba iron ore project that straddles the border with Guinea being developed at a reported cost of USD 1 billion by ArcelorMittal. Four other Liberian iron ore deposits are currently being explored by BHP Billiton. The Mt Jide ridge of the Putu range project comprises a high-grade magnetite & hematite mineralized zone with a strike length of approximately 12 kilometers.
Dr Tom Elder CEO of Mano said These sample results confirm that, whilst at an early stage, the Putu Range iron ore project exhibits the potential scale to develop into one of Manos premier assets by contained value. Preparations are underway for a Phase 1 systematic exploration programme to commence, which will include drilling, in order to more accurately delineate the extent and style of mineralization and to prepare an initial independent resource estimate.
Prior to 1989 Liberia was the largest producer of Iron Ore in Africa, exporting over 15 million tonnes annually, contributing approximately 50% to government revenues.
Donbass Fuel to borrow overseas
It is reported that Ukraines biggest coal producer Donbass Fuel and Energy Company will borrow at least USD 300 million abroad this year to increase investment.
Mr Evhen Romashny finance director of Donbass Fuel at a press conference in Kiev said that the company will borrow as much as USD100 million from foreign banks in July and sell at least USD 200 million denominated bonds by the end of October. He declined to give any details on borrowing.
The Donetsk based company, which controls 25% of the Ukrainian coal market, plans to invest as much as USD 700 million in its two mines, to increase production to 24% by 2011. Donbass also owns companies that produce and distribute electricity. The company uses its coal for electricity output and plans to reconstruct 11 blocks out of 17 by 2011, investing USD 380 million.
The company is part of System Capital Management.
Yakutia drafts tin industry development program
Interfax reported that Mr Vyacheslav Shtyrov president of Yakutia has ordered his industry ministry to draft a program for the development of the tin mining industry.
Mr Shtyrov said that "In particular, we must determine how the company Sakhaolovo will work in the next two to three years and in the long term. Right now Sakhaolovo needs to tackle strategic issues. First of all, it is necessary to help the company get a license to develop the Deputatskoye deposit, as well as organize work to further explore the Druzhba deposit, begin preparing feasibility studies for deposits with tin reserves."
The tin industry development program is needed because the industry still has problems as the production of tin concentrate in 2006 was down by 14.3% compared to 2001. Sakhaolovo, a subsidiary of the Novosibirsk Tin Plant operates at the Deputatsky mining and concentrating works.
Given the strategic importance of tin for the Russia's industry, The Yakutia authorities plan to continue efforts to introduce a zero value added tax rate for companies that sell tin concentrate by giving the strategic importance of tin for the Russia's industry.
Park Teknik to produce 17.2 million tons of coal annually at Collolar
It is reported that Park Teknik has won the tender for the operation of Collolar Coal Field to meet the fuel needs of the Afsin- Elbistan B thermal power plant in Turkey. The enterprise will produce 17.2 million tonnes of coal annually.
Park Teknik has won the tender for the operation of COllolar Coal Field of Elektrik Uretim AS to meet the fuel needs of the Afsin- Elbistan B thermal power plant. A contract has been signed between Park Teknik and ES.
Mr Hilmi Gler the minister of energy and natural resources, announced that the tender for service buy to establish and operate the open mine business with a production capacity of 17.250 million tonnes of coal annually.
Estar's Kuzmin plants January to February output up by 19% YoY
Interfax reported that Estar controlled Kuzmin Metallurgical Plant in Novosibirsk has increased commercial production by 19%YoY to 60,500 tonnes durinh January to February 2007. Its sales also jumped by 32% YoY to 866.2 million rubles in the two months.
The plant produced 28,600 tonnes of commercial roll and 23,300 tonnes of steel pipes in the two months, respectively 58% YoY and 3% YoY more than a year earlier.
Rebar consumption up by 30% YoY
According to RUSMET experts, Russia has increased rebar consumption by 30% YoY in January to February 2007 concerning the similar period of the last year. It quite corresponds to the general tendency of growth of consumption of long products used for construction at the Russian market and noticeably exceeds rebar market volumes growth on results of 2006.
RUSMET analysts said that certainly, now we deal with seasonal increase in demand, but averaged through year consumption also noticeably grows. So, by estimations of, rebar demand in May will be not less than 340,000 tonnes that exceeds results of May 2006 by 16%. Now we observe some deficiency of rebar at the Russian market. Rebar export for 2 months 2007 was reduced by 31% and will continue to fall with significant rate, at least till May. Import, on the contrary, has increased on 16 % and will continue its growth.
Bailong Automobile to invest in iron ore mine
A local Economic and Trade Commission official of China told Interfax that Bailong Heavy duty Automobile Co Ltd has invested CNY 73 million (USD 9.44 million) to develop an iron ore mine in Kuerkesayi, Qinghe County, Xinjiang Province.
Fire damages Algoma Steel crane
Local media reported that fire put a large crane at Algoma Steel Inc.'s scrap yard out of commission Sunday.
Mr Brenda Stenta manager corporate communications of Algoma Steel Inc said that ASI's in house emergency personnel responded around 5:40 pm local time to a call to the vast southwest yard known as the transwest material processing facility, where various materials are sorted and processed. The No. 50 hoist had caught fire.
He said that Sault Ste Marie Fire Services showed up with most available resources and that blaze was recorded out approximately 35 minutes later. There were no injuries.
Mr Damon Ferris chief of the platoon said the cause was determined to be equipment malfunction.
Mr Stenta could not say whether the crane can be salvaged, but said the fire will not affect production. "Alternate equipment is available to support operations at the material processing facility." He said the site was released back to ASI Monday morning. The steelmaker is conducting its own investigation, and extent of damage is not yet known.
CVRD to supply contract with Chinas second level steel mills
Brazilian steel giant CVRD has signed the first supply contract of 2007 with Chinas 2nd level steel mills XingXing Pipes for a long term cooperation.
Under the contract, CVRD will annually supply 90,0000 tons iron ore to XingXing Pipes from year 2007 to 2011 and as 1 of 3 major suppliers of global iron ore, CVRD and XingXing Pipes cooperation draws other iron ore suppliers attention to the business opportunities with Chinas 2nd level steel mills.
It is noted that for the 2nd level mills in Chinas steel industry, the long term agreement with an internationally major iron ore supplier helps them to secure the production capacity with a stable material supplying source.
Burj Dubai sets global record with 120 floors
It is reported that the tallest structure in the Middle East and Europe, Burj Dubai has set a new global record for having more floors than any building in the world with a 120 storeys and 422.5 meters highand. It is now taller than the Empire State Building with 381 metres in New York City and the John Hancock Centre with 344 metres in Chicago.
Designed by Chicago based Skidmore, Owings & Merrill, Burj Dubai is constructed by high rise experts South Korea's Samsung Corporation. Turner Construction International is the project and construction manager. To date, 304,800 cubic metres of reinforced concrete and 59,200 tonnes of reinforcing steel have been used in the construction of Burj Dubai.
As per reports, Burj Dubai will be the tallest building in the world in all four categories recognized by the Council on Tall Buildings and Urban Habitat which compiles and ranks the world's tallest buildings. CTBUH ranks buildings on the basis of spire height, the highest occupied floor, roof height and pinnacle height.
