April, 29 2007
CPI says emphatic NO to POSCO projects in Orissa
In a major blow to POSCOs plans for setting up 12 million tonne steel plant at Paradip in Orissa, Communist Party of India announced that it will continue its strong opposition to the POSCO steel plant project at all levels.
Mr AB Bardhan general secretary of CPI told media "We are opposing the POSCO project because of the provisions in its MOU signed with the state government and we will not allow it. This MOU smacks of colonial exploitation of Orissa and its mineral, forest and water resources. Our stand is an emphatic No to POSCO".
Mr Bardhan said that POSCO Pratirodh Sangram Samiti will continue to resist land acquisition for the proposed steel plant in three gram panchayats of Jagatsinghpur district. As regards POSCO holding talks with the locals for acquiring land, Mr Bardhan said "I want to say emphatically that the PPSS is not at all negotiating with anybody on the POSCO issue. Negotiation can not be undertaken under threat and the PPSS will not allow either the government or POSCO to take over the fertile land. The land cannot be occupied through force and handed over to MNCs. We urge the Orissa Government to refrain from any such a move."
He also emphasized that CPI is opposed to the Orissa government's decision to give captive iron ore mines to the company. He said "No company should have captive mines. All companies should be asked to buy raw material from the Orissa Mining Corporation."
Mr Bardhan also opposed POSCO's plans to set up a captive port near the proposed steel plant saying that it would have adverse impact on the Paradip port.
Mr Bardhan said that the CPI will join hands with like minded parties to launch an agitation against handing over of Orissa natural resources such as mineral resources, forests and water ignoring the interest of the people at large.
TATA Steel to hold talks with landowners for Tentoposi plant
Local media reported that, for breaking the prolonged stalemate following protests from a section of villagers opposing any kind of displacement over the last few months, TATA Steel has decided to hold constructive dialogue with local landowners to clear hurdles in way of their proposed 12 million tonne Greenfield steel plant at Tentoposi village in Seraikela-Kharswan district of Jharkhand.
TATA Steel sources informed media that the officers entrusted with execution of the project would be traveling to the project site on April 29th 2007 to initiate the dialogue process.
This would be the first such initiative of the TATA Steel favoring an open dialogue with the landowners.
Jindal Saws Q4 net up by 49% YoY
Indian pipe major Jindal Saw Limited posted 49.05% YoY increase in net profit at INR 70.25 crore for January to March 2007 quarter as against INR 47.13 crore during January to March 2006. Its total income net of excise during January to March 2007 also increased by 33.21% YoY to INR 1272.27 crore as against INR 955.04 crore in January to March 2006.
Jindal Saw said that Increased focus on improvement of the water and sanitation facilities is offering ample business opportunities to the companies supporting the water and sewage infrastructure. It added that The growth in crude demand is resulting in tight pipeline capacities in various regions across the world. Lack of capacity is likely to temper the distribution market resulting in fuel shortages or retail price hike.
Considering the increased E&P activities leading to higher demand of seamless tubes, the company projects a significant growth in the SAW pipe, seamless pipe and ductile iron pipe business.
Pollution issues in Indian sponge iron industry
India, which accounts for 33% of global DRI production with 1.5 million tonne production in March 2007, is facing as sever problem of pollution. It is reported that the mushrooming number of sponge iron industries throughout the country is causing severe damage to the environment and is causing serious respiratory and skin diseases to the people in the area.
While in foreign countries, most of DRI units are based on natural gas, in India in most of them are coal based without any effective pollution control equipments, making Indian sponge iron industry fatal for the living being and environment. The exhaust from such industries in form of smoke through the chimney and the carbon ash contain highly toxic substance like copper, chromium and cadmium etc which directly or indirectly pollute the air, water and land. It is reported that the ash of the industries are dumped along the road side, on the banks of rivers and even inside the rivers. As a result, agriculture in the area is badly affected and severe health hazards not only to the humans but also to the animals are also witnessed.
A Kalinga Times report has cited Mr Kishore Ekka of Sundargarh district as saying that "I am ailing from acute bronchitis. Doctors say it is due to heavy pollution in the area. They also say that there is high risk of cancer. Only God can save me now." Similarly Mr Sunil Kerketta a villager in the sponge iron areas in Raipur district of Chhattisgarh claimed that "Two of my cows died eating the ash stricken grass and leaves. Similar incidences are also reported from other villagers also.
A study conducted by scientist Sagardhara during 2001 in a sponge iron industry in Mayurbhanj suggests that there is high risk of cancer to the people inhabiting around these industries. Similarly Indira Gandhi Agriculture Institute of Raipur district of Chhattisgarh found in a study that about 25,000 hectares of land has become barren in a radius of five km of a sponge iron factory.
In the National Industrial Policy 1991, all care was taken to promote the sponge iron industries by de licensing, permitting land acquisition and ensuring supply of water and subsidized electricity for the plants. As a result, the number of industries boomed from 3 in 1985 to nearly 206 in 2005 and about 225 such industries are under construction now. But there is not much effort on part of the state pollution control authorities for enforcing the pollution norms.
In such a situation, the big question remains unanswered that Is the tremendous growth of Indian sponge industry, at the cost of pollution resulting in health hazards, a matter of pride for Indians?
JSWs SISCOL to expand capacity and focus on special steel
JSW Steels subsidiary Southern Iron and Steel Company Limited has registered a highest ever net profit of INR 55.05 crore for 2006-07. Mr JK Tandon chairman of SISCOL while addressing the media said that "The EBIDTA margin had risen to 31% with improved performance, higher sales realization, volume mix and profit from sale of investments." SISCOL also repaid debt of INR 19.40 crore during the Q4 of 2006-07.
Mr Tandon said that the company has taken up a project for expanding capacity from 0.3 million tonnes to 1 million tonnes annually involving an estimated expenditure of INR 1,320 crore. Mr Tandon added that the completion of the project by March 2007 has been delayed due to some delays in supply of equipments whose manufacturers have tremendous order books.
SISCOL has decided to increase its focus on meeting the needs of the auto sector and on the manufacture of special grade steel required by the oil and gas sector because of the higher margins these products command compared to the products required by the construction industry. Mr Tandon said that when the company's production reaches 1 million tonnes, nearly 40% to 50% of the production would be to meet the requirements of the automobile industry, 20% to 30% would be special steel for the oil and gas sector and the rest would go to the construction industry.
Maharashtra inks MoU for 1,215MW power project in Yavatmal
Maharashtra government has signed a MoU with a consortium of companies including IDFC and the Lokmat Group for setting up a 1,215 MW coal based power plant in Yavatmal district.
Maharashtra government has formed a special purpose vehicle JLD Yavatmal Energy Ltd' for setting up the proposed power plant. Lokmat Group of Nagpur along with Abhijeet Group is the lead partner in the consortium while the IDFC will be the financer for the 75:25 JV.
The INR 5,000 facility to be spread over an area of 1,500 acres will have 9 units, each having a capacity of 135 MW.
EEPC sets USD 36 billion export target for 2007-08
Indias Engineering Export Promotion Council is targeting exports of USD 36 billion worth of engineering goods during 2007-08 and plans to increase the exports to about USD 100 billion by 2016.
Mr Rakesh Shah chairman of EEPC said that "Engineering exports account for 21% of total exports, the largest foreign exchange earner for the country."
Mr Shah noted that the annual supplement to the Indian Foreign Trade Policy has envisaged an overall export growth of 28% for 2007-08 and engineering goods exports had grown by over 20% a year in the last 2 years while in 2006-07 the provisional export growth rate was estimated at 35%.
Jharkhand plans expansion of Patratu power plant
It is reported that the Patratu Thermal Power Station has planned to establish two units of 615 MW capacities each at an investment of INR 5,000 crore and has sent the detailed project report to the Jharkhand cabinet for approval. PTPS has already initiated renovation of its existing non functional units.
Mr Aditya Swarup state energy secretary said that the project was likely to become functional by the end of next year.
Jharkhand will get rid of energy deficit that currently faces and also significantly reduce dependence on external supply sources if the project is approved. State government has already earmarked fund for commissioning the project, which will be located in the existing PTPS premises.
CEA report suggests to BHEL measures to match power equipment needs
It is reported that Indias power ministry has held Bharat Heavy Electricals Limited responsible for much of delays in the 10th Plan which led to a shortfall of nearly 15,000 MW in the period and is still unconvinced about BHELs ability to deliver the required amount of equipments for power sector. As per report, power ministrys regulatory body Central Electricity Authority is reported to be keeping a close watch on the performance of BHEL to meet the increased demand so that no delays might occur in commissioning power projects during the 11th Plan.
The CEA has suggested that BHEL augment its project implementation capability to achieve the target of commission 6,400 MW set for the current year and also give a comprehensive plan to achieve the target for this year as well as a comprehensive plan for commissioning of units during 2009-10, 2010-11 and beyond.
CEA report states that In our opinion, BHEL is yet to equip itself to meet these targets. The orders will not always flow in an even manner. There can always be bunching of orders as happened during the Tenth Plan, when orders for more than 5,000 MW were placed in 2003-04. BHEL will have to build up adequate capacity to meet the load peaks caused by bunching of orders. CEA has suggested that in some critical projects where commissioning could slip beyond the schedule due to production loading in excess of the manufacturing capacity, BHEL could import the finished items so as to avert delay in commissioning of projects.
Indian government has planned thermal power capacity addition of 57,000 MW during 11th Plan, including projects that slipped from the 10th Plan, and out of this orders for 27,667 MW have already been placed. BHEL has received orders for 17,285 MW including 4,145 MW which slipped from the 10th Plan.
Emami to set up bio diesel plant at Haldia
Indias leading personal and healthcare major Emami groups Emami Biotech Private Limited has announced that it will set up a INR 1500 million bio diesel plant at Haldia in West Bengal. Commercial production at the plant would start from December 2007 and initial capacity would be 0.1 million tonnes per annum.
According to company sources, initially Emami Biotech would import crude farm oil and other ingredients for production of bio diesel from Malaysia and Indonesia.
West Bengal government is planning to frame a bio diesel policy to encourage such projects and 3 districts of Bankura, Purulia and West Midnapore have been identified for jathropa cultivation.
BHEL opts out of Malwa thermal power project
BS reported that Bharat Heavy Electricals Ltd has refused to pick 15% in proposed 1,000 MW Malwa thermal power project planned at Donagalia Purni village of Khandwa district of Madhya Pradesh.
Madhya Pradesh and Gujarat government had entered into an INR 8,000 crore JV and signed a MoU for a 2,000 MW project. Baroda based L&T Sargent & Lundy Ltd has been appointed consultant in the project and is likely to be completed by 2011. The project has been allotted coal from given 4.62 million tonne per annum coal from Southern Eastern Coalfield Ltd in Korba. The PFC has sanctioned a loan of INR 2,730 crore to the project by calculating exposure limit of 67.5% of the total cost of INR 4,053 crore. Later Gujarat government state board had given a cold shoulder to MP state power board arm Genco.
Madhya Pradesh government, in view of the BHEL decision, has decided to accept whatever was available with the Power Finance Corporation and has accordingly approved INR 810.60 crore share capitals for the project to secure INR 2,730 loan from PFC against its own demand of INR 3,548 crore loans. The state government has also decided to provide on asset security instead of guarantee on loan.
The Khandwa project will be offered to bidders on turn key basis on parts where the first part will include boiler, generator and civil work while the second part will include balance of plants.
Baosteel to lose CNY 1 billion due to export tax rebate cut
Baoshan Iron and Steel China's largest steelmaker announced that recent cuts in tax rebates on steel product exports would cost it almost CNY 1 billion in 2007. Mr Chen Ying Baosteel's board secretary said that "Without considering other factors, the tax rebate adjustment will lead to a loss of nearly CNY 1 billion on the company's income in 2007.
Mr Chen said. The company will face more pressure in second quarter operation costs after the increase in term contract iron ore prices and the cut in tax rebates on steel product exports.
Baosteel had earlier said that it sold 10% to 15 % of its steel products to overseas markets. It exported 2.98 million tonnes of steel products in 2006.
China removed export rebates on most types of steel products while reducing rebates on high value added steel products to 5% on April 15th 2007.
Alabama approves additional incentives to lure ThyssenKrupp
An Alabama House committee took the first step toward increasing the incentives and tax breaks the state is offering to lure ThyssenKrupps new steel plant to south Alabama. The bill now goes to the Senate. The USD 2.9 billion ThyssenKrupp plant is expected to employ about 2,700 workers.
Alabamas House Education Appropriations Committee voted unanimously for a bill that would give large employers a 10 year break on paying utility taxes an enhanced 20 year break on property taxes that don't go to education and an income tax credit for 30 years. A key element of the new bill is the 10 year break on paying taxes on the use of electricity and natural gas. It is expected that the modern plant would be one of the largest users of electricity in Alabama and that the break on the utility tax would save the company millions of dollars.
Mr Richard Lindsey D Centre said he hopes this package will be the final push required to encourage ThyssenKrupp AG to locate their plant near the Mobile County and would apply to any new company locating in the state that would invest at least USD 2.5 million and employ 2,000 or more workers. Mr Lindsey said "I think the state has done everything it can do to attract the plant. We are in a very competitive position, but it remains to be seen what decision will be made.
The Alabama Legislature in a special session in February approved a USD million increase in the state's bonding authority to attract new businesses. State voters must approve that measure in a June 5th referendum.
ThyssenKrupp is also considering a site in Louisiana in St James Parish along the Mississippi River between Baton Rouge and New Orleans.
The Louisiana Legislature last year approved a USD 300 million package of incentives to help lure the steel plant and Gov. Kathleen Blanco has said she will ask lawmakers to add another USD 100 million to that fund.
Ryerson gives Arcelor Mittal more time to submit bid - Report
Chicago Business reported that Ryerson Inc has given Arcelor Mittal additional time to submit an offer for the company, as Ryerson executives try to increase the number of bidders.
As per report Distributor Metals USA Inc owned by private equity firm Apollo Management LP of New York and Platinum Equity LLC a California based private equity group, entered offers by the April 20th deadline. The amounts of the bids turned in could not be learned but industry observers expect the offers to be about USD 1.2 billion.
Metals USAs offer contains cash and stock in what would be a new public company combining Ryerson and Metals USA, several sources said. Houston based Metals USA had sales last year of USD 1.8 billion, roughly one third of Ryersons. Apollo had intended to take Apollo public last year but shelved the offering until market conditions improve.
Platinum Equity owns steel distributors including Chicago based Feralloy Corp. Sales of Platinums steel businesses amounted to about USD 1.5 billion in 2006.
Ryersons board put the company on the block earlier this year after shareholder Harbinger Capital Partners of Alabama offered its own slate of directors to replace the Ryerson board. Harbinger complained that Ryersons income in recent years has lagged its competitors. Ryerson has one of the lowest operating profit margins in the distribution sector.
BF gas leak kills 4 at Haicheng Iron and Steel Co Ltd in Anshan
It is reported that 4 workers were confirmed dead in a gas leak at a private steel plant Haicheng Iron and Steel Co Ltd in Anshan industrial city in northeast China's Liaoning Province. The accident occurred at around midnight.
The leak occurred on a gas pipe connected to the company's primary blast furnace and the investigation is continuing.
An official with the safety inspection bureau in Anshan said that 5 workers were on duty and were taking a nap in their office. 4 of them had died when rescuers arrived. The fifth one was out of danger after timely treatment."
Haicheng Iron and Steel produces 0.5 million tonnes of steel every year.
Venezuela increases Mibam budget and to setup SS plant
BNamericas reported that Venezuela's national assembly has approved an additional VEB 820 billion (USD 382 million) for the budget of the country's basic industries and mining ministry Mibam.
A Mibam spokesperson told BNamericas that "Of that sum, VEB 10.8 billion will be earmarked for the stainless steel factory to be installed in Monagas state." The official also said that the new plant, which will be part of Venezuela's trade and cooperation model for Latin America and the Caribbean (Alba), is a JV owned 51% by Venezuela and 49% by Cuba during the pre investment stage. The plant will be built in the Libertador area of Monagas.
Mibam announced an investment of USD 6.67 billion for 2007, a leap of more than 42% over the 2005 figure.
Solid Energy to defer export shipments due to snail relocation
New Zealand's main coal exporter Solid Energy announced that it has lost millions of dollars in profits due to lengthy delays at one of its mines due to 5,300 rare giant land snails. Solid Energy said that under a conservation rules it has been forced to mine at a snail's pace costing the company about NZD 35 million (USD 26 million) in the current financial year.
Mr Don Elder CEO of Solid Energy said that the cost figure includes NZD 25 million in lost profit this financial year because of delayed export coal shipments and NZD 10 million in costs. The company is unable to meet contract commitments because of delays and would lose up to 5 export shipments, totaling 300,000 tonnes of coal, to China, India, Japan and South Africa before the end of June 2007.
Solid Energy had expected that it would take only a few months to clear the Stockton mining area of the snails. But many more snails had been found than the 500 to 1,000 that conservationists predicted, including some in areas where they had never been found before. Mr Don added that it has cost the company more than NZD 6,000 for each of the 5,300 native land snails found and relocated so far.
Save Happy Valley Coalition the group spearheading the campaign to save the snails said that Solid Energy could have saved itself and the snails by mining elsewhere. Ms Francis Mountier spokeswoman of Save Happy Valley Coalition said that "Obviously if they had left that core habitat or even a portion of that core habitat undisturbed, they would have protected that species with a guarantee that it survives. There's still no science that says this is going to be a successful relocation."
NDRC urges abolition of preferential policies for high energy consumers
China's top economic planning body National Development and Reform Commission recently called for an end to the preferential policies offered by local governments to industries with high energy consumption. Mr Jia Yinsong an official with NDRC said the preferential policies should be abolished and those who refuse to cancel the policies should be blacklisted.
It is reported that 14 provinces in china are said to have offered cheaper power supply to enterprises with high energy consumption, without notifying the central government.
Mr Xia Nong another NDRC official also said that the country should place more emphasis on the service industry as an alternative measure to curb energy consumption by the secondary industry. He said if the service industry's contribution to the country's gross domestic product was increased by 1% and the proportion of the industrial added value went down by1% the energy consumption per CNY10, 000 of GDP would also be lowered by 1%.
Statistics show that the output of crude steel rose 22.3% in the Q1, 4.7 % points higher than the growth rate of the same period of 2006, while electrolytic aluminum and alumina production soared 36.6% and 53.7% respectively.
Severstaltrans to buy 50% stake from Mr Mordashov
Russian developer and transport operator Severstaltrans Group announced that it is planning to buy a 50% stake in the company from Severstal owner Mr Alexei Mordashov. The stake will go to company executives Mr Konstantin Nikolayev, Nikita Mishin and Mr Andrei Filatov, who will together own 100% of Severstaltrans.
The company said earlier it is planning an investment program to increase the volume of container operations to 1.5 to 2 million 20 foot equivalent units a year. The programs include the building of container terminals in Russia's Far East, specifically at the ports of Vladivostok and Vostochny. The company said in March it closed a deal to buy the St. Petersburg based Petrolesport stevedore company.
Chile's CAP Q1 profit surges by 386% YoY
Chile's biggest steel and iron ore producer CAP announced that its net profit rose almost five fold in January to March 2007 quarter mainly due to its sale of a stake in a copper mine.
CAP, with operations in Argentina and Peru, said that its profit in the January to March 2007 period was USD 103.1 million up by 386% YoY compared with USD 21.2 million YoY. Over half its profit USD 55.2 million came from the sale of a 27% stake in the Carmen de Andacollo copper mine in northern Chile.
CAP said it sales totaled USD 361.4 million in the first three months of 2007 up by 67.6 % from USD 215.6 million YoY.
Mincors Q1 nickel production slips due to lower output at the Mittel mine
Metals Insider reported that Australian Mincor is on track to meet its original production target of 12,500 tonnes to 13,500 tonnes of nickel in concentrates for the financial year to June 2007 despite a drop in Q1 output.
Mincors production in Q1 of 2007 dropped to 2,776 tonnes of contained nickel from 3,275 tonnes in the previous quarter largely due to lower output at the Mittel mine.
The company said that production at Mittel was restricted by a shortage of skilled manpower and reduced loader availability, which led to a backlog of backfill activities. It added that These issues have since been resolved and production has returned to more normal levels.
Mincor operates four mines in the Kambalda district of Western Australia, supplying ore to BHP Billitons Kambalda concentrator.
CSRC finds violations by Hangxiao Steel on Angolan contract
China Securities Regulatory Commission ruled that Shanghai listed Hangxiao Steel released improperly timed, inaccurate and incomplete information regarding a housing contract in Angola to bump up its share prices. The CSRC did not actually specify the inaccuracies of the Hangxiao's alleged contract. The CSRC said it would punish Hangxiao Steel Structure for violating rules, without elaborating.
Zhejiang based Hangxiao Steel said in a statement to the Shanghai Stock Exchange in February that it was in talks with an Angolan company regarding a CNY 30 billion housing project. The deal involving 3.3 million tons of steel products seemed suspicious as given Hangxiao Steel produced only 300,000 tons of steel structures in 2006.
Hangxiao's stock trading was banned for 10 trading days on March 19th 2007 after it was accused of rigging stock prices with a bogus contract announcement. Its shares surged by the daily allowable limit of 10% for 10 straight days ending March 16th, when it closed at CNY 10.75. The CSRC launched the investigation into the Hangxiao Steel Structure amid wide-spread dispute the unusual market activity and said on March 22 that it would firmly punish anyone who has broken the law.
The company issued a statement on March 26 warning investors of possible risks as the contract might be terminated at any time if its partner failed to pay or other uncontrollable events like natural disasters, government policy changes and violence disrupted the projects.
Trading of Hangxiao's stocks were again halted by the commission on the third day after it was resumed on April 2, during which a period of feverish trading had driven its share price to another high of CNY 13.97.
MBMIs Nerra nickel mine in Philippines to start laterite shipments by June
Canadian miner MBMI Resources announced that its Philippines subsidiary has now been granted all requisite mining and environmental permits to commence development and mining on the Alpha nickel property at Narra in Palawan province of Philippines.
MBMI Resources said that substantial progress has already been made towards completing the infrastructure requirements for the new mine and first shipments of product to Asian consumers are expected prior to the end of the current quarter.
Narra will be a direct shipping ore operation and joins others in the Philippines shipping laterite ore to China, where it is converted to nickel pig iron.
It said that the objective is to develop a series of major suppliers of high grade nickel products to the primary nickel consumers in Asia. The company added that Demand for nickel ore, across all grade ranges from 1% to above 2% nickel ore grade, exceeds supply by a large margin and nickel prices continue to rise to historical highs.
MBMI and its Philippine partners jointly control a 100% interest in 8 nickel laterite projects in Palawan and Samar provinces.
Macarthur Coal cuts 2007 sales target
It is reported that Macarthur Coal Ltd has cut its full year sales target as production issues and port congestion take their toll on the Queensland coal miner. Macarthur downgraded its sales target from 4.5 million tonnes to 3.7 million tonnes for 2006-07 but its profit forecast for the year remains the same.
Macarthurs Q3 sales was dropped by 49.1% compared with the same period last year to 0.672 million tonnes of coal as a result of production issues, rain, and port congestion. Macarthur's saleable coal production from its two mines in Qld's Bowen Basin Coppabella and Moorvale dropped during the 3 months to March 31st 2007 due to the collapse of a pit wall, while increased overburden requirements restricted output at the Moorvale mine.
Macarthur said that "The annual sales target of 4.5 million tonnes, excluding purchased coal, has been revised to 3.7 million tonnes after taking account of production performance for the December and March quarters and off mine site infrastructure constraints but despite the change to the sales target, forecast net profit after tax of USD 63 million to USD 73 million remains unchanged.
It added that Shipping congestion has increased with over 45 ships anchored off Dalrymple Bay Coal Terminal in North Queensland awaiting loading. Loading delays have increased from 14 days at the end of February 2007 to 28 days at the end of March 2007 and increased congestion is being experienced at all coal ports along the eastern seaboard of Australia."
Jiangjing Xing Cheng Special Steel commissions new bloom caster
It is reported that Chinese Jiangjing Xing Cheng Special Steel Co has successfully cast the first heat on the jumbo continuous bloom caster, which is supplied by Concast AG of Switzerland. Three months prior to the originally agreed date, the caster was put into provisional operation at its location of Jiangjing, Jiangsu province some 170 kilometer from Shanghai.
As per report the caster is equipped with three strands for the section size 370mm x 490mm. Up to 870,000 tonnes of high grade bearing and spring steels are cast on the continuous caster, which has a radius of 16.5 meters.
Concast has incorporated a large number of technical innovations into the planning and implementation a tundish with inductive heating, a resonance oscillator with two synchronized cylinders, electromagnetic mold stirrers and dynamic Mechanical Soft Reduction with nine plus one modules per strand. The electrical and automation systems, comprising Levels 1 and 2, were also supplied by Concast.
Jiangjing Xing Cheng Special Steel Co belongs to the Pacific Metal Group (Hong Kong).
Shougang Jingtang orders electrical equipments from Siemens
Metals Technologies a division of the Siemens Group Industrial Solutions and Services received an order from Shougang Jingtang United Iron and Steel Co to supply the electrical engineering equipment for three new strip treatment lines. The order includes the basic and process automation and all of the drive systems for a continuous annealing line and two hot dip galvanizing lines.
Siemens is supplying all of the drive systems as well as the basic and process automation, including the technological controllers for the built in sizing stand and the stretcher levelers of the galvanizing lines. Altogether, 750 main and auxiliary drives based on three phase Sinamics drive systems. These types of drive are characterized by their compact design, low noise emission, uniform parameterization for the entire product line and extreme ease of maintenance. In addition, the treatment lines are to be equipped with HMI devices with user-friendly process and plant diagnostic functions.
Shougang Jingtangs new steel production complex with an annual capacity of 1.5 million tons is being built on an artificial peninsula near Caofeidian. From 2009 onwards, structural steel, white goods and starting material for the regional automotive industry will be produced here. The new treatment lines including an annealing line with an annual capacity of 830,000 tonnes and two hot dip galvanizing installations one for processing 462,000 tonnes and the other for 339,000 tonnes per year will be used to process low alloy and cold rolled carbon steels for high quality car body parts, among other applications.
For all three lines, Siemens will also be responsible for supervision of the installation and commissioning work as well as customer training. The annealing line will be installed by a consortium comprising SMS Demag AG, Dsseldorf, and Stein-Heurtey, Paris. The two hot dip galvanizing installations will be provided by a consortium consisting of the Belgian company CMI, Seraing, and Drever International.
Shougang Jingtang is a JV company of Shougang Corp and Tangshan Iron & Steel Co. As part of the efforts to improve the local environmental situation, the company is moving its production facilities from inside the city limits of Peking to a new location not far from Tianjin.
China to unveil renewable energy program soon
INTERFAX-CHINA reported that China is to likely unveil a medium to long term renewable energy scheme in the near future as a draft of the scheme was recently submitted to the State Council for discussion.
Mr Chen Deming deputy director of NDRC announced about plan's progress at a renewable energy law forum last week and explained that the scheme includes plans for the management of China's hydroelectric power wind power and bio energy sectors.
Mr Chen said the scheme will establish China's major renewable energy development plans and goals for the next 15 years and will complement the country's current Renewable Energy Law he explained that the nation's energy regulators began researching and drafting the scheme back in 2003.
China's Renewable Energy Law was introduced on January1st of 2006 and is expected to lead to a boom in the country's renewable energy-based power industry.
Consol Energys Q1 profits slips by 15.9% YoY
Consol Energy Inc announced that its profit during January to March 2007 quarter was USD 113.3 million down by 15.9% YoY as compared to USD134.8 million in January to March 2006 quarter. Its revenue also fell by 7.2% YoY to USD 915.2 million as compared to USD 985.9 million in the Q1 of 2006.
Mr J Brett Harvey president and CEO of Consol said "We produced solid financial results in the face of a soft market for energy. Our mines ran well, coal unit costs period to period were lower and coal margins continued to expand. The performance in our coal segment offset the somewhat lower results reported by our CNX Gas subsidiary because of lower natural gas prices."
Consol added that It built coal inventory during the quarter, but the increase was not reflected in the company's earnings this quarter because the timing of shipments.
Nucor orders reheating furnace improvements from Core Furnace
It is reported that Core Furnace Systems will supply a series of flameless low NOx burners to Nucor Steel for its walking hearth reheat furnace at Plymouth in Utah and the installation will be complete in this fall.
Core Furnace, which designs and supplies a range of heat treating equipment and systems, said that the new burners will reduce NOx levels to 0.07 pounds per MMBtu or lower.
Core Furnace has also has been contracted to design and supply a new EnCORE process control and automation system, to replace the reheat furnace's existing process control and automation system. This system will include Level 1 and 2 controls, and an advanced thermal modeling program for energy savings.
Consol forms JV for Youngs Creek coal mine in Wyoming
Coal producer Consol Energy Inc announced that it formed a JV with Pittsburg and Midway Coal Mining, a unit of integrated oil company Chevron Corp to develop a mine in Wyoming. Financial details weren't disclosed.
As per report affiliates of the companies formed Youngs Creek Mining Co, which will develop the Youngs Creek Mine north of Sheridan in the Wyoming Powder River Basin coal field and the mine has the potential to produce about 15 million tons of coal annually. The companies plan to submit permits for the mine in 2008, but said mine construction won't begin until sufficient coal sales come under contract.
Mr J Brett Harvey CEO of Consol Energy said that Youngs Creek mine is one of the best remaining in the Powder River Basin. Not only is it the highest Btu product being produced anywhere in the Wyoming portion of the basin, but the majority of the coal is owned outright rather than leased from the federal government as is more typical of Powder River Basin reserves."
US specialty steel producers highlight effect of nickel prices
US stainless products company Universal Stainless and specialty alloys producer Allegheny Technologies made similar comments in their first quarter results about the state of play in the US market.
Allegheny said It has seen some customers for our nickel based alloys and superalloys being cautious with their inventory levels due to the unusually high cost of nickel. Shipments of commodity stainless sheet were much lower as a result of inventory management actions at many of our US service center customers. We remain sensitive to our customers concern with the dramatic increase in the cost of nickel and continue to assist our customers in switching to lower nickel bearing alloys, a process that has changed our product mix and continues to gain momentum.
Universal said that our sales of high strength low alloy and high temperature alloy steels, which are used primarily for aerospace applications, represented 16% of our total sales in the 2007 Q1 compared with 11% in the same quarter in 2006. With the peak in commercial aircraft delivery not expected until 2010 and the potential for replacement aircraft orders from domestic airlines, we expect aerospace demand to drive our growth for the foreseeable future, supported by the strong prospects for all our niche markets." Universals Dunkirk specialty steels business saw increased sales in every customer category with the exception of rod and wire sales, mainly reflecting the delay of orders for high nickel bearing grades of steel because of record nickel prices.
These are high end products and the problem becomes more acute in the standard grade stainless segment something also highlighted by Finnish producer Outokumpu which is taking a 10% production cut in this area.
Northwest Pipes Q1 net up by 73% YoY
Northwest Pipe Company reported sales of USD 90.7 million for January to March 2007 quarter up by 15.1% YoY as compared to USD 78.8 million in January to March 2006 quarter. Its net income for the first quarter of 2007 was USD 4.5 million up by 73% YoY as compared to USD 2.6 million in January to March 2006.
Its sales in the Water Transmission Group increased by 15.4% YoY to USD 64.6 million as compared to USD 55.9 million in Q1 of 2006 and gross profit improved to USD 13.7 million or 21.3% of sales as compared to USD 10.2 million or 18.2% of sales.
Its Tubular Products Group's sales increased by 21.6% YoY to USD 23.0 million as compared to USD 18.9 million in Q1 of 2006. Gross profit was USD 2.3 million as compared to USD 1.9 million in the first quarter of 2006. Gross profit as a percent of sales was consistent at approximately 10% for both periods.
Sales in the Fabricated Products Group were USD 3.2 million in the first quarter of 2007 as compared to USD 4.0 million for the first quarter last year. The gross profit for this Group was USD 58,000 or 1.8% of sales as compared to USD 383,000, or 9.6% of sales, last year.
Rio sees a place for coal energy despite debate on pollution
Mr Paul Skinner Rio Tinto Ltd chairman said that there is still a place in the world for coal energy, despite the debate over greenhouse gas emissions.
Mr Paul Skinner told shareholders at the company's annual general meeting in Perth that "I have the view that in the longer term the world will need all the energy options they can get and coal in one of them. It is important for us that we secure a place for coal in the global energy mix we think coal has a good future but we think we need to work to make sure it has a clean future."
Mr Leigh Clifford CEO of Rio Tinto said the company is already involved in number of projects to clean up the coal industry.
The executives were responding to a question from a union representative who said coal miners were sick of being demonized by environmentalists.
Daewoo Shipbuilding reports profits for Q1 of 2007
Daewoo Shipbuilding Marine and Engineering Co announced that it swung to the black in the first quarter of 2007 on increased orders for high priced vessels.
Its net profit amounted to KRW 52 billion (USD 56 million) in the January to March 2007 period as compared with a loss of KRW 45 billion in 2006.
Mr Patrick Buffet new chairman & CEO of Eramet Group
Metals Insider reported that French nickel and alloys producer Eramat has named Mr Patrick Buffet as its next chairman & CEO, who will replace Mr Jacques Bacardats.
Mr Buffet an Engineer of the Corps des Mines, was Senior Executive Vice President of the Suez Group and a member of the Suez Executive Committee.
Japanese industrial production slides in March
Metals Insider reported that Japanese headline industrial production fell by 0.6% MoM in March, defying expectations for another rise after Februarys 0.7% gain. Industrial production over the Q1 fell by 1.4% relative to Q4 of 2006 which was the first sequential contraction in six quarters.
The fall seemed to be driven by inventory adjustments particularly in high end sectors such as semiconductor chips and liquid crystal display units. However, we note that fabricated metals made it to the 3rd place on the list of those industry sectors leading the downturn.
March household spending fell by more than expected to marginal 0.1% YoY growth and March retail trade fell by 0.7% YoY.
That has left a few question marks hanging over the strength of Japans economic performance, although policy makers in the country seem to be sanguine about the outlook. As part of that confidence, note that the Ministry of Economy, Trade and Industrys monthly survey of manufacturers generated a positive outlook expectation for both April and May.
