May, 18 2007
TATA Steels 2006-07 profit up by 20.41% YoY
TATA Steel Ltd has announced its audited results for January to March 2007 quarter & for the financial year 2006-07.
TATA Steel Ltd has posted a net profit of INR 11035 million for January to March 2007 period up by 40.91% YoY as against INR 7831.1 million for the same period last year while the total income has recorded at INR 50602.1 million for January to March 2007 period up by 21.49% YoY as against INR 41648.9 million for the same period last year.
TATA Steel Ltd has posted a net profit of INR 42221.5 million for the year ended March 31st 2007 up by 20.41% YoY as against INR 35063.8 million for the same period last year and total income has recorded at INR 179856.9 million up by 16.25% YoY as against INR 154702.6 million for the same last year.
The consolidated results are as under
The group has posted a profit after minority interest & share of profits of associates of INR 9643.7 million for January to March 2007 period up by 18.58% YoY as compared to INR 8132.2 million for the same period last year and the total income has recorded at INR 75594 million for January to March 2007 period up by 40.64% YoY as against INR 53749.2 million for the same period last year.
The group has posted a profit after minority interest & share of profits of associates of INR 41772.7 million for the year ended March 31st 2007 up by 11.85% YoY as compared to INR 37346.2 million for the same period last year and total income has recorded at INR 256513.8 million for the year ended March 31st 2007 up by 24.70% YoY as against INR 205688.8 million for the same period last year.
Anti POSCO forum reject Orissa CMs invitation for talks
It is reported that the POSCO Pratirodh Sangram Samiti opposing POSCOs proposed 12 million tonne steel project near Paradip has rejected the proposal of Mr Naveen Patnaik chief minister of Orissa to have direct talks with the people.
POSCO Pratirodh Sangram Samiti had earlier appealed to the government to hold a political dialogue on the Posco issue, now felt that there was no need to talk to the state leadership as Mr Patnaik is not inclined to change site of the proposed plant.
Mr Abhay Sahu president of POSCO Pratirodh Sangram Samiti said Talks will only be fruitful if Mr Patnaik comes with an open mind. If he is determined not to change the proposed site, there is no point in talking to him. Since the CM has already decided to set up the plant here before talking to local people, he should find a way to acquire land here.
Mr Sahu, while replying to a query on whether the agitators would meet POSCO Indias CMD Mr Soung-Sik Cho, said that the people did not need the POSCO India. Mr Cho had earlier said that there was no need to avoid the agitators if they wanted to discuss the project.
TATA Steel appoints Mr Leng as deputy chairman
TATA Steel announced that its board of directors at its meeting held on May 17th 2007 has appointed following Corus Group Plc of UKs directors on the board of the company as additional directors
1. Mr Jim Leng as a Non Executive Independent Director designated as Deputy Chairman.
2. Mr Philippe Varin as a Non Executive Director
3. Mr. Jacques Schraven as a Non Executive Independent Director
4. Dr. Anthony Hayward as a Non Executive Independent Director
The release said that The induction of the above mentioned four Corus' directors on the Board of the Company will bring in a rich and varied experience that would enable it to manage the business of the enlarged size and complexity.
Indias coal demand for 2007-08 assessed at 494.5 million tonnes
Indian government has assessed Indias coal demand for 2007-08 at 494.50 million tonnes, which includes a demand of 38.04 million tonnes on the part of Singareni Collieries Company Limited operating in the state of Andhra Pradesh.
Dr Dasari Narayana Rao minister of state for coal informed the Rajya Sabha in that the estimated coal demand of planned to be met from domestic supply of 461.89 million tonnes, which includes domestic production of 460.50 million tonnes and a stock draw down of 1.39 million tonnes from Coal India Limited sources.
Dr Rao informed that a gap of 30.61 million tonnes will be entirely met by proposed import of 20 million tonnes of coking coal for steel sector and 10.61 million tonnes of non coking coal for power, cement and other sectors.
Captive port and iron ore mines must for POSCO India Mr Cho
POSCO said that captive port and own iron ore mines play an important role in its proposed 12 million tonnes per year steel plant in Orissa and without which it would lose its competitive edge in the global market.
Mr Soung Sik Cho chairman and MD of POSCO India said that "The port and captive mines are needed if such a large project is to have a competitive edge. These are basic needs without which you cannot survive in global business. If we are asked to buy iron ore, how can we compete with other companies who already have their own captive iron ore mines?"
Mr Cho said that POSCO is taking all measures for protection against erosion of the coast and an impact if at all would be restricted to 3 kilometer of the new port which falls within POSCO India's project site. Mr Cho added that "Those who are raising questions about the port planned at Jatadhari, are doing so because of ignorance. But we will require the port as we will be handling about 30 million tonnes of cargo annually. I am told the Orissa government is keen to develop 13 ports along the coastline and ours could be one of them."
Mr Cho said that the Orissa government had identified 3 iron ore mines in Thakurani and outer Malangtoli in Keonjhar district and Khandadhar in Sundargarh district each of which is believed to contain about 200 million tonnes of ore. As the 2 mines in Keonjhar district were under litigation, the state government considered the case of Khandadhar mines and recommended to the central government to provide POSCO India the prospecting license in December 2006. Mr Cho said that the union mines ministry is reviewing the matter very carefully and seeking legal opinion. He said Hopefully, it will be disposed off soon and if the decision went in favor of POSCO India, the company would commence prospecting work immediately and the company would then apply for mining lease and get it by 2009.
Usha Martin eying Chinese market
It is reported that Indias wires and specialty steel producer Usha Martin is eyeing the growing Chinese steel market and may set up an office in China soon.
Mr Rajeev Jhawar MD of Usha Martin told reporters that "We are going to open our office in China next month. We want to take advantage of the huge market there. We will study the market and raw material availability and take appropriate steps thereafter. We will continue to focus on producing value added products including wire ropes in our plants at Ranchi, Thailand and the US and export them."
Mr Jhawar said the company was looking to sell special quality wire ropes for elevators, mining and the construction sector in China.
Usha Martin has manufacturing facilities at Ranchi, Jamshedpur, Hoshiarpur, UK, Thailand, UAE and US.
Mittal Steel India to use own R&R package in Orissa
BS reported that Mittal Steel India, which will require 8,000 acres land in Keonjhar in Orissa for its proposed 12 million tonne plant, has decided to develop its own rehabilitation and resettlement package in line with the guidelines set forth by the state governments policy.
Mr Sanak Mishra CEO of Mittal Steel India told BS that even though it was not part of the MoU signed with the Orissa government, the company would come out with its own R&R package. He said It has become a requisite given the scenario. Mr Mishra clarified that the move is not linked to the POSCO hostage crisis but said that We are watching the situation and learning from it.
Mr Mishra said that now it would appoint an agency to work on the package by the end of the month. He said that Mittal Steel India will study the demography, income generation possibilities and income aspirations of the people at the project site which would be completed in 5 months time.
But, Mr Mishra said that direct land acquisition would be the last option for the company because there were too many people involved.
The Orissa R&R policy features convertible preference share as one of the options for compensation. The policy states that at the option of the displaced family and subject to the provisions of relevant laws in force for the time being, the project authority might issue convertible preference shares or secured bonds up to a maximum of 50% out of one time cash assistance.
Revival package for BPCL announced
Mr Sontosh Mohan Dev union minister of heavy industries and public enterprises has announced a revival package for Bharat Pumps & Compressors Ltd located at Naini in Allahabad to ensure its long term sustainability.
The revival package also includes cash infusion of INR 20 crore by Bharat Heavy Electrical Limited and INR 150 crore by Oil & Natural Gas Corporation. The package also includes waiver of outstanding liabilities of INR 150 crore and restructuring of the board of directors by including professionals from BHEL, ONGC & EIL.
Mr Murli Deora minister for petroleum and natural gas also assured that ONGC would provide the required advance against supplies to be made by BPCL, including advance payment for next years projected supplies if needed. He also announced that he would ask the other public enterprises in the Petroleum Sector to give purchase preference, as admissible, to source their equipment from BPCL, in line with ONGC. However, BPCL should ensure no diversion of these funds.
NTPC gets shareholders approval for nuclear power plants
It is reported that NTPC Ltd has bagged shareholder approval for amending existing clauses in the company's MoA for going ahead with its proposed nuclear foray. The government, as the principal shareholder, has already given its assent to the company for amending the respective clauses of its MoA to take up nuclear power projects.
NTPC has informed the BSE, that its members, by way of postal ballot, have passed a special resolution for amending existing clause 1 and clause 4 (a) of the company's memorandum of association to enable it to take up nuclear power generation activities.
NTPC's corporate plan for 2002-17 envisages taking up 2,000 MW of nuclear capacity in JV during the 12th Plan. NTPC plans to enter into a 70:30 JV to set up a 2,000 MW power plant during the 12th Five Year Plan period.
Currently, NTPC is in the process of selecting optimal technology options and identify potential sites for its first nuclear project. NTPC would engage technical consultants to look into all aspects of the nuclear foray, including training of manpower with respect to design, operation and developing necessary competence to set up other nuclear plants.
Indian shipbuilding sector on mega growth path
Mr TR Baalu minister of shipping, road transport and highways in a written reply in the Lok Sabha said that order book position of Indian shipyards has shown a phenomenal growth during the past 3 years to 4 years, especially in export orders.
Indian shipyard order book position has increased from INR 150 crore in 2002 to about INR 14,000 crore in 2006 and is expected to soon move up in the global ranking with the proposed capacity addition by various shipyards.
China's iron ore imports up by 23% YoY in 4 months
Xinhua citing Chinas General Administration of Customs reported that China's imports of iron ore has been recorded at 133.6 million tonnes in January to April 2007 up by 23.36% YoY as against 108.3 million tonnes in January to April 2006. The report added that Chinas iron ore import in April hit 33.4 million tonnes.
Analysts said that the iron ore imports for the whole year of 2007 are likely to beat the earlier forecast of 355 million tonnes by the China Iron and Steel Association.
China imported a record 325 million tonnes of iron ore and produced 419 million tonnes of crude steel in 2006.
Mr Luo Bingsheng deputy chief of the China Iron and Steel Association said that domestic steel firms should buy or jointly develop more overseas iron mines and in order to guarantee stable supply in the medium and long term China needed to control at least a third of world iron ore resources.
MMK and Atakas to build a steel mill at Iskendrun
Kommersant reported that Magnitogorsk and Turkish Atakas are planning to build a rolling mill in Turkey for about USD 1.1 billion. The plant's capacity will be 2 to 2.6 tonnes per year.
According to the Bloomberg agency, which cited the Turkish newspaper Milliyet, the plant will be built in the Iskendrun and construction may begin in September 2007 for a September 2009 launch of the plant's first line and a 2011 launch for the second line.
Experts said that MMK will have gotten a good buy on it production capacity, if its project goes as planned such deals cost USD 700 to USD 1000 per ton of production. Magnitogorsk, however, is paying USD 500 per ton. The deal will also require intensive investment for two or three years before any proceeds come from the plant.
ABARE report reveals that 91 projects are in advance stage in Australia
Canberra based Australian Bureau of Agricultural and Resource Economics latest report of major minerals and energy projects has revealed 91 advanced, under construction or committed to, projects, at a record value of AUD 43.4 billion up by 24% than the AUD 34.9 billion in 2006. The bureau said energy projects account for AUD 16.8 billion of the planned projects while there's AUD 22.4 billion of mining projects and AUD 4.2 billion of minerals projects planned.
Mr Phillip Glyde ED of ABARE while releasing the report Minerals and energy: major development projects - April 2007 said that "This is a record value of advanced projects and, at 91, the number of projects is also at a historically high level.
In total there are a record 279 major projects in the April 2007 listing. 188 projects are at less advanced stages and still undergoing feasibility studies. 23 projects have been completed and 43 projects have been added to the list since October 2006. While not all of the 188 less advanced projects will necessarily proceed to development, it provides another indicator of the strong growth prospects of the sector.
Mr Phillip Glyde said that these numbers show that investment remains strong enhancing the prospects for sustained growth in the Australian mineral resources sector. He said project cost pressures and delays are unlikely to ease in the short to medium term while this level of development activity continues.
CISA urges steel makers to increase control on iron ore purchase
It is reported that China Iron & Steel Association is greatly concerned about the upcoming benchmark ore talks in view of soaring ore imports in the first quarter amid ever-increasing freight rates.
Mr Luo Bingsheng vice secretary general of CISA urged domestic ore importers to forge a new mode of iron ore supply chain at a recent iron ore conference in Chengdu encouraging leading steelmakers to sign long term iron ore purchasing and ship chartering contracts to secure stable supply.
He also suggested steel mills to jointly purchase iron ore and charter ships for lowering steelmaking costs. Mr Luo said that regional collaboration between steel mills has already started with some large steel mills being commissioned to purchase iron ore from overseas on behalf of small and medium sized steelmakers. He said "Small and medium sized steel mills are now able to secure a stable iron ore supply at a reasonable price. However they are still required to pay a commission to the large steel mills."
Mr Luo also urged Chinese steelmakers to develop domestic iron ore reserves in a sensible fashion and to further control overseas iron ore resources through mergers. So far, China has only grabbed 58 million tons of iron ore overseas through direct control, representing 17.8% of its total import tonnage. Hopefully, the figure could be lifted up to over a third or even 60% for the sake of stable and safe supply in the future.
Mr Yan Bangsong vice director of China Chamber of Commerce of Metals, Minerals and Chemicals Importers and Exporters said that selecting competitive ore supplier through holding tender across the globe is another good option for buyers in addition to existing long term and spot supply.
(Sourced from MySteel.net)
US steel Caucus urges action against Chinese pipe imports
Chesterton Tribune reported that US Republican Mr Pete Visclosky and 57 other members of the Congressional Steel Caucus are urging the US. Trade Representative to address Chinese exports of steel pipe and tube.
Mr Visclosky noted that the Chinese government has announced that it will not reduce subsidies on pipe and tube steel products making it the only sector in the finished steel industry that would not see an elimination or reduction in Chinese rebates. Mr Visclosky and the Caucus are urging the USTR to address this issue at the US China Strategic Economic Dialogue to be held in Washington DC on May 23rd to May 24th 2007.
He said that If we allow the Chinese steel industry to continue down the path they are on we will see more outsourcing of American steel jobs and the domestic steel industry will be weakened. We must not let our own trade policies hurt our economic security and I urge Trade Rep. Schwab to immediately address these critical issues with the Chinese."
Mr Visclosky and his colleagues in a letter to ISTR said that "This sector of the US steel industry has worked hard to reinvest retool, and redirect its energies in recent years as competition for market share has escalated. He said it is an efficient industry and an integral component of the US economy. In addition to the customers they serve this industry is also an important customer to US steel producers. While we respect the rights of all nations to conduct trade in an open and fair manner the Steel Caucus is deeply concerned that these Chinese actions are explicitly targeting the critical downstream producers and workers of the pipe tube and fittings industry. We cannot allow these tactics to adversely affect this highest value added segment of the domestic steel industry.
The statement said China is a leading exporter of an array of steel pipe tube and fittings products "In fact import data show that Chinese imports increased 81% from 350,000 to 631,000 tons in the Q1 of 2007 over the Q1 of 2006. It is estimated that imports from China in 2007 will be approximately 3.9 million tons or approximately 30 %of the US market."
The statement said "By not addressing this unfair advantage held by the Chinese steel industry "Northwest Indiana steelworkers could suffer. According to the Committee on Pipe and Tube Imports, Allied Tube and Conduit, located in Harvey, Ill., is one of the nation's largest pipe and tube producers and has over 500 employees that live in Northwest Indiana. Allied is an important customer of the area steel mills because it purchases hot rolled steel to make pipe and tube products. "
Xinjiang to allocate 48.46% of its stake in Bayi to Baosteel
Xinjiang Uyghur Autonomous government which owns 15% stake in Xinjiang Bayi Iron & Steel has agreed to allocate 48.46% of its ownership in Bayi to Baosteel.
The two bodies have signed a supplementary contract for restructuring Bayi on May 15th and the deal has been approved by State owned Assets Supervision and Administration Commission of the State Council.
Baosteel signed an agreement to pay CNY 3 billion (USD 385 million) for a 69.61% stake in Bayi in January and the government of the region will retain 15%. The merger will boost Baosteel's total steel capacity to 30 million tonnes per year by 2010.
The supplementary contract has that Baosteel would file an application with China Securities Regulatory Commission and complete the stake transfer after SASAC nods the proposal.
(Sourced by MySteel.net)
Gerdau Acominas to expand in the flat product segment
Brazilian steel producer Gerdau Aminas has ordered Siemens Group Industrial Solutions and Servicess Metals Technologies for the supply of a continuous slab caster and an RH degassing plant costing about USD 100 million. Following the start up of these new facilities scheduled for December 2008 Gerdau will be able to produce 1.5 million tons of high quality steel for the flat product market.
The single strand slab caster will have an annual capacity of 1.5 million tons of slabs with widths from 800mm to 2,100mm and thicknesses from 220mm to 250mm.
Gerdau Aminas is currently implementing an expansion program for its Ouro Branco steel works in the State of Minas Gerais Brazil to increase its annual steel production by 50% from 3 million tons to 4.5 million tons.
Gerdau Group is the leading producer of long products in the Americas with 15.5 million tonnes of steel production in 2006. The Group has production facilities in Argentina, Brazil, Canada, Chile, Colombia, Peru the United States Uruguay and in Spain. It owns more than 90% of the shares of the Brazilian steel producer Gerdau Aminas.
FMG inks deal with Tangshan to increase iron ore offtake
Australian iron ore prospector Fortescue Metals Group Ltd announced that it had revamped a supply agreement with Chinese steelmaker Tangshan Iron and Steel Group that increases volumes.
The 10 year offtake agreement covers a first phase quantity of 5 million tonnes a year of Fortescue's initial 45 million tonne per annum output from its Chichester Range iron ore mine in the Pilbara region of Western Australia. Tangshan has committed to purchase a further minimum of 15 million tonnes annually of Fortescue's planned expanded production. The pact replaces and expands an existing offtake agreement between the parties, allowing for an increase in volume and an adjustment to the type of ore to be sold.
Fortescue said that the increased take up by Tangshan hinges on Fortescue increasing its annual output beyond its proposed 45 million tonnes a year.
The agreement between Fortescue and Tangshan comes as Chinese companies push aggressively into Australia's mining industry, driven by huge demand for raw materials to feed a booming economy.
Fortescue's is expected to ship the first ore from its USD 3.7 billion Chichester Range project in mid May 2008. The company is slated to export about 25 million tonnes of iron ore in the first year from the mine before ramping up production to 45 million tonnes a year. The company has plans to increase output to 60 million tonnes annually before further increasing output to 110 million tonnes per annum.
Assmang approves Khumani iron ore project
African Rainbow Minerals Ltd announced that its Assmang unit has approved capital expenditure of ZAR 4 billion to build the Khumani iron ore mine and export facilities that will be commissioned by July 2008.
ARM in a statement said that "The board of directors has approved a total capital expenditure of ZAR 4 billion to construct the Khumani Mine, which includes anticipated escalation costs. The total cost will also pay for an increase in export tonnage to 10 million tonnes per year."
ARM said that export tonnages for its 50% owned unit Assmang would almost double to 10 million tonnes a year by January 2010 and logistics and transport group Transnet would increase its total capacity for transporting iron ore by rail to 47 million tonnes per annum, making possible the added export capacity.
Assmang is jointly owned by African Rainbow Minerals and Assore.
POSCO to break ground for Vietnamese plant in August Report
It is reported that POSCO will begin building a USD 1.1 billion steel plant in August in South Vietnam in August 2007 although POSCO has issued a statement to South Korea's financial regulator in Seoul saying it is studying the feasibility of an integrated steel plant in Vietnam but that nothing has been decided.
Ms Ko Min jin Posco spokeswoman said only reiterated Posco's announcement late last year that it planned to start building a cold rolled plant in Vietnam sometime in the second half of the year.
But Mr Pham Chi Cuong chairman of the Vietnam Steel Association said that POSCO received an investment license in March and is getting ready for the construction of the Phu My steel plant which is slated for production in 2009. Mr Cuong said it will be built in two phases. First it will begin investing USD 340 million to start construction of a cold rolled steel plant scheduled for production in 2009. A second phase will then raise production at the plant to 3 million tons including hot rolled steel by 2013.
The plant would be POSCO's third steel plant in Vietnam.
Macsteel Service Centers opens New Tucson facility
Macsteel Service Centers USA has announced the opening of its new USD 10 million metals processing and distribution service center at Tucson in Arizona. The facility would process and distribute carbon and non ferrous metals for customers throughout the Southwest US and Mexico.
The new 73,400 square foot Greenfield facility which features technologically advanced metals processing equipments. A 72" Braner slitting line and a 60" blanking line are up and running in the new plant. Both the slitter and blanking line are capable of processing cold rolled, galvanized, prepainted, hot rolled pickled and oiled, galvanneal, electrogalvanized, stainless steel and aluminum.
The slitter has a 60,000 lb. master coil capacity and features a turret recoiler. Thickness range of the slitter will be an impressive 0.011" to 0.187". The 60" blanking line has a 40,000 pound master coil capacity and will process material ranging from 0.020" to 0.138" in thickness.
Mr Michael Hoffman, President and CEO of Macsteel Service Centers said that "Opening the hub in Tucson gives us the opportunity to provide even better service and support to our customers. It also helps strengthen our network presence in the Southwest US and Mexico markets, where we currently operate facilities."
Macsteel Service Centers is one of the leading companies in the North American metals service center industry. Its products include a full range of flat rolled, plate, tubing, pipe, bar and structurals. Macsteel also supplies a full range of steel building products, coated and prepainted metals.
PSMC Privatization No timeframe finalized as yet
Pakistans Daily News reported that Pakistan government cannot assign a timeframe at this stage for the privatization of the Pakistan Steel Mills Corporation.
The Pakistan privatization minister during a question hour told the Senate that the Initial Public Offering of PSMC had been proposed instead of the mills privatization.
Pakistans Supreme Court annulled the PSM sale deal on June 23rd 2006.
Australian EPA recommends freeze on some iron ore deposits
Miners won't be able to touch iron ore deposits potentially worth billions of dollars in Western Australia's wheat belt if the state government accepts recommendations from its environmental watchdog. The Environmental Protection Authority has recommended further mining be banned in the Banded Ironstone Ranges within the Mount Manning Range reserve north of Southern Cross. WA Environment Minister Mr David Templeman will make the final decision on the issue.
EPA has called that some iron ore deposits in the Pilbara to be frozen from mining on the basis that underground spiders habitated some of those areas. EPA has recommended to Mr David Templeman environment minister for an existing reserve be doubled in size because it contains flora species it claims that only exist in one or two small banded iron formation ranges.
Mr Chris Tallentire director of conservation council of WA director said that the region's environment and conservation values must be protected. Mr Tallentire said "When Portman goes into the Mount Manning area they will say they want to do it in a sustainable way."
Meanwhile, miners in Western Australia said that it would lock out iron ore deposits worth millions of dollars and would immediately affect Portman Mining Ltd's iron ore operations in the Koolyanobbing region, though not areas currently being mined.
Dr Justin Walawski CEO of Association of Mining & Exploration Companies said that the EPA continued to provide a gross imbalance towards conservation in the state, with 12% of the one million square miles land mass set aside for conservation but only 0.6% for mining and the proposed A Class reserve area held at least AUD 4 billion worth of iron ore deposits. Dr Walawski added that "We're also concerned with how credible the so called conservation areas of this area are. Large parts of the Mount Manning area are pastoral leases. We're talking about salt plains and scrub, and in many cases the fauna that exists there is simply sheep and cattle that have been left there by pastoral leases."
Bolivia proposes to apply 12.5% tax to mining profits
BNamericas reported that Bolivian government has presented a bill to the country's national economic policy council proposing a 12.5% mining profit tax. Once Conape approves the proposal to raise the IUM, it will be sent to the national congress for consideration.
Mr Luis Alberto Echaz mining and metallurgy minister of Bolivia told BNamericas that "It's a special tax for mining, which will be applied to the net income of operating companies."
He also emphasized that the complementary mining tax will remain as is. It fluctuates between 1% and 5% depending on prices. There is no change on this one.
In February, the administration yielded to protests organized by the mining cooperatives federation Fencomin and ruled out the 10% ICM increase, with which it hoped to collect at least USD 300 million this year, six times more than the USD 45 million collected in 2006.
US Steel warns about emissions cap on steel sector
Pittsburgh Business Times reported that as forces across the US gear up to control carbon dioxide emissions, Mr John Surma chairman & CEO of US Steel Corp sounded a cautionary warning.
Mr Surma while addressing to members of the South Oakland based Pittsburgh Technology Council at Downtown's Omni William Penn Hotel said that jobs in the local and national steel industry could be in jeopardy if efforts to curtail so called greenhouse gasses aren't implemented in a fair and measured manner. He said that "If it were to be done too significantly and too quickly, it could be dire."
Mr Surma said that any rush to limit greenhouse gas could expose the flank of US steelmakers to steel made in China, where carbon dioxide restraints won't be as readily applied.
He added that the science to remove carbon dioxide emissions from the iron and steel making process is still decades away.
Numerous pieces of legislation are brewing in US that would seek to control carbon dioxide emissions, not just from the primary polluters but from steel making and other manufacturing processes. Several bills are also pending in the US Senate that would create a cap and trade system, in which companies that produce excessive amounts of carbon dioxide would have to buy carbon credits from companies that don't produce as much.
Chelyabinsk Pipe Mills shareholding to undergo change
Interfax reported that Shareholders in Chelyabinsk Tube Rolling Plant are transferring their shares to a new Cyprus registered firm Mountrise Limited.
The Federal Antimonopoly Service said it had received an application from the Cyprus-registered investment company Mountrise Limited for clearance to acquire 75.88% of the voting shares in ChTPZ worth more than RUB 3 billion. FAS said it had extended its consideration of the request by two months due to the need for further consideration and in order to obtain additional information for the purposes of an objective and thorough examination of the transaction.
A spokesman for the Luxembourg-registered Arkley Capital which controls the ChTPZ pipe and metals group's assets told Interfax that the shares were being transferred form companies registered on the British Virgin Islands to the new company in connection with an internal reorganization.
The pipe mill's financial statement for the first quarter of 2007 says that as of March 31st 2007 18.83% of the company's shares were held by Elf Group Ltd 17.19% by Maris Services Inc. 14.85% by Orem Group S.A 15.28% by Platini Steel Trade Ltd. and 9.73% by Level Bay Management SA where Russia's CJSC Depositary Clearing Company and CJSC ING Bank Eurasia are nominal holders of 10.06% and 5.19% of the shares respectively.
ChTPZ Group includes Chelyabinsk Tube Rolling Plant, Pervouralsk New Pipe Plant, Chelyabinsk Zinc Plant, service company ChTPZ-Integrated Pipe Systems, metal traders MeTriS & TIRUS and scrap recycler ChTPZ-Meta.
EU clears Voestalpines purchase of German Dancke
The European Commission announced that it has cleared Austrian steel company Voestalpine AG's proposed acquisition of a 70% stake in two German automotive suppliers, Dancke Stanztechnik GmbH and Dancke Werkzeugbau GmbH.
The transaction was cleared under the EUs simplified merger review procedure for cases which the commission believes do not pose competition concerns.
Financial details of the transaction are not disclosed. The remaining 30% in the two German companies which specialize in metal forming technology will be retained by current owner Walter Moldaschel.
The two companies employ around 200 people and have combined annual sales of EUR 40 million.
Korean steelmakers plan to invest KRW 25 trillion
It is reported that Korean steel makers are pouring billions of dollars to expand their businesses at home and abroad on the back of growing demand for steel.
Industry sources said that through 2011, four Korean steel makers POSCO, Hyundai Steel, Dongguk Steel and Dongbu Steel are expected to invest up to KRW 11 trillion to enlarge their facilities here at home.
This figure could reach up to KRW 25 trillion if spending on overseas plants is taken into account. POSCO plans to invest USD 12 billion to build a plant in India and Dongguk Steel some USD 800 million for a factory in Brazil.
Wheeling-Pittsburgh plans to increase scrap inventories
Platts reported that Wheeling Pittsburgh is counting on its pending merger with Esmark to help fix a competitive disadvantage caused by holding relatively scant inventories of scrap and other metallic.
Mr James P Bouchard chairman & CEO while in a conference told analyst that "We only have about five days of scrap on the ground. Our mini mill competitors carry 40 days to 60 days of scrap." Mr Bouchard added that financial constraints were limiting the company's flexibility in obtaining raw materials. He said that the problem will be largely solved if shareholders approve the merger later this year.
Indicating that he expects US scrap prices to continue their recent downtrend, Mr Bouchard said that "We will get some positive benefit as scrap continues to move down." However he indicated that the company's scrap costs will be higher for the second quarter as a whole.
Wheeling Pittsburgh had to operate almost entirely in the spot market during the first quarter as a result, spending close to USD 14 million in March alone for scrap and pig iron. Some of the material purchased in March was not worked down until April, and will have an adverse impact on raw material costs in the current quarter.
Wheeling Pittsburgh historically operated only blast furnaces and was not as vulnerable to scrap costs. One of the company's two 275 shoirt ton capacity blast furnaces was replaced with an electric arc furnace in mid 2005 putting the mill in the rare position of operating both types of furnaces at the same facility.
Boulder Steel lists shares on Dubai exchange
Australian Boulder Steel, which is building a plant to make seamless tubes for the oil and gas industries in Australia as well as a seamless tube finishing facility in Sharjah, has listed its ordinary shares on the Dubai International Financial Exchange recently.
Mr Carl Moser director and GM of Boulder Steel said that As the regions international exchange, the DIFX is the ideal market for us to attract investors from across the Middle Eastern region. The exchanges close links to retail and wholesale brokers make it an excellent platform for Boulder Steel as we expand our business.
Mr Per E Larsson CEO of the DIFX said that The DIFX offers Boulder Steel high visibility and an increasingly liquid marketplace, through its expanding connections with investors, including the Computer share link. The exchange looks forward to more listings in coming months from regional as well as international companies.
Boulder Steels market capitalization is about USD 190 million and it is also listed on the Australian Stock Exchange as well as exchanges in Germany.
Boulder Steel products include seamless steel tubes and motor vehicle components. A seamless tube finishing line with a capacity of 250,000 tonnes per annum is to be built in the Hamriyah Free Zone in Sharjah, UAE. The Hamriyah plant aims to become a significant supplier of seamless tubes for the oil and gas industries in the Gulf region.
WCI Steel Inc reports Q1 results
WCI Steel Inc announced a net loss of USD 4.3 million in the Q1 of 2007. For the Q1 of 2007 WCI Steel reported:
1. Shipments of 307,000 tons
2. Revenues from product sales of USD 195.5 million, or USD 637 per ton
3. EBITDA of USD 1.8 million, or USD 6 per ton
4. Operating loss of USD 4.6 million
5. Net loss of USD 4.3 million prior to the PIK preferred dividend
6. Net loss per share of USD 1.80 for the quarter
Mr Patrick G Tatom president & CEO of WCI Steel said that "Our first quarter performance was modestly better than our prior guidance. Our shipments of 307,000 tons in the quarter exceeded our prior guidance of 290,000 tons largely due to very strong shipments at the end of March. Our average revenue per ton of USD 637 was USD 39 per ton below the fourth quarter, but USD 6 per ton above our guidance for this quarter.
Mr Tatom added that Although we are not satisfied with our performance in the quarter, EBITDA in the quarter of USD 1.8 million would have been USD 5.2 million without USD 2.8 million of expense related to the BOF incident and USD 0.6 million of salaried employee headcount reduction charges included in costs."
Construction material prices on the rise in Vietnam
VietNamNet Bridge reported that construction material producers are planning to increase their selling prices to cover the higher input material prices due to escalated input material prices.
Mr Pham Chi Cuong Chairman of the Vietnam Steel Association said that the steel price keeps high though the offered billet price has slightly decreased in the last couple of weeks. He said that many steel mills are still using the ingot steel imported at high prices in the first quarter of the year. According to Mr Cuong, the ingot steel in stock by the end of April has reached 300,000 tonnes, enough to meet the demand for the production in May and June. The inventory finished steel is reportedly at 260,000 tonnes.
According to the Vietnam Cement Association the cement price has also been sharply increasing the sold volume of cement reached 3.5 million tones raising the total consumed volume of cement in the first four months of the year to 11.18 million tones. The cement price stays at VND 770,000 to VND 835,000 per tonne in the north and VND 880,000 to 1 million per tonne in the south. However the prices of these products are bound to increase as the input material prices have increased.
As the input material prices have increased in the last time, the HCM City Peoples Committee has recently made the decision on allowing local enterprises to adjust the selling prices of steel and cement spontaneously. Local enterprises would be allowed to lower or raise the prices by 5% compared to the price levels announced by the HCM City Departments of Construction and Finance.
Dongkuk Steel Q1 earnings dip by 18.4% YoY
South Korean Dongkuk Steel Mill Co announced that its Q1 earnings fell by 18.4% on the strong local currency.
Dongkuk Steel in a regulatory filing said that its net profit came to KRW 34.7 billion (USD 37.5 million) in January to March 2007 period, as compared with KRW 42.5 billion a year earlier.
Metalico gets conditional permit for shredder installation in NY
US based scrap processor Metalico announced that it has received a conditional use permit to install and operate a mega shredder at its Metalico Rochester subsidiary at Chili in New York. The project, which would process as much as 240,000 long tonnes per year of ferrous scrap could be operational as early as mid 2008.
A Metalico executives revealed in April that they planned to install a shredder but had not ordered the machine yet, pending the outcome of the permitting process. A period of objection for the current use permit expires on May 17th 2007. The executive added that it is the company's second attempt to install a shredder in upstate New York State. An attempt to acquire Union Processing in Rochester, which owns a shredder, fell through in 2006.
Metalico has moved aggressively to increase its ferrous operations. In the first quarter 2007 Metalico derived 35% of its processing revenue from ferrous scrap, up from 20% for full year 2006.
Romportmet Q1 net profit surges 2.8 times
Port operator Romportmet SA Galati announced net profit of RON 10.93 million (EUR 3.3 million) for Q1 of 2007 up by 2.8 times from RON 3.82 million in the same period last year. Its Q1 turnover rose by 30% from the year ago quarter, totaling RON 16.47 million (EUR 5 million). For Q1 2006, the company reported a net profit of RON 12.63 million.
Romportmet posted a net profit of RON 35.802 million in fiscal year 2006 increasing by 5.6% from 2005 when net earnings amounted to RON 33.9 million. Turnover rose by 9.2% YoY totaling RON 63.912 million.
Romportmets majority shareholder is Mittal Steel Holding with 83.27% followed by Sidex Trading with 11.5%.
