May, 08 2007
Dr Kalam presents prestigious CSR award to Mr SK Roongta
Steel Authority of India Limited has bagged the Businessworld-FICCI-SEDF Corporate Social Responsibility Award for 2006. President of India Dr APJ Abdul Kalam presented the award to Mr SK Roongta chairman of SAIL at the FICCI Auditorium yesterday. This is the first time that a public sector enterprise has won the award since it was instituted in 1999.
A total of 33 companies had participated in the Businessworld-FICCI-SEDF Corporate Social Responsibility Awards 2006 contest and only 7 companies SAIL, Neyveli Lignite Corporation Ltd, NTPC, HSBC, Hindustan Zinc Ltd, Zensar Technologies and Tata Chemicals Ltd were shortlisted for the top award through a unique three tier rigorous selection process, including field visits, and all the applications were thoroughly scrutinized and assessed on various parameters of CSR. The jury consisted of Dr Abid Hussain, Justice Leila Seth and Mr Mark Runcers, who were assisted by Grant Thorton and the Business & Community Foundation.
The award recognizes the innovative corporate social responsibility initiatives taken by SAIL in the fields of education, access to drinking water, medical and healthcare, sanitation, communication & roads, sustainable livelihood & income generation, women's empowerment, tribal welfare, environment preservation, sports, reproductive and child healthcare, heritage preservation, cultural and recreational activities etc.
Under corporate social responsibility initiative SAIL has been supporting various activates since it has been incorporated. Some of the initiatives are
1. 133 company run schools that impart quality education to more than 80,000 children, maintaining a girl to boy ratio of 1:1.
2. SAIL also provides access to improved sources of drinking water to more than 2 million people.
3. More than 20 million people have benefited from SAIL's 20 hospitals, four specialty hospitals and numerous primary healthcare centers.
4. The first corporate entity to collaborate with NACO for generating greater awareness on AIDS, SAIL has so far covered more than seven lakh people in its AIDS awareness program since 1999-2000.
5. To promote and help develop small scale industries around its plants, the company generates orders worth more than INR 600 crore for ancillary industries annually.
6. Mahila Samaj and Samitis in SAIL plants & units have been working relentlessly for empowerment of women from weaker sections of society by forming self help groups for income generation.
7. SAIL has its own townships comprising collectively of 140,000 houses, well equipped hospitals and lush green parks, which benefit the community at large besides the company's employees and their families.
8. SAIL has also created sports facilities at the townships while organising sports activities all over the country in football, archery, tennis, athletics, cricket, etc. Tribal children with sporting talent are also trained at SAIL's four sports academies.
9. Tribal welfare is another thrust area of SAIL's CSR activities. Bokaro Steel Plant of SAIL has adopted a number of children of the nearly extinct Birhor tribe of Thakurani. Bhilai Steel Plant is providing free education with free boarding and lodging to 76 SC/ST children.
10. To preserve the environment in and around its plants/mines, SAIL has planted 13.5 million trees and is nurturing them. As part of the Clean Development Mechanism under the Kyoto Protocol, several other projects have been taken up. Besides, the company regularly afforests areas that are denuded due to mining activities.
During the current financial year, SAIL has planned to spend nearly INR 100 crore on CSR activities, which include
1. Developing 16 model steel villages in the states of Chhattisgarh, West Bengal, Orissa, Jharkhand, Karnataka, Tamil Nadu and Madhya Pradesh
2. Setting up separate schools for economically underprivileged children at Bhilai, Durgapur, Bokaro, Rourkela and Burnpur in order to provide free education, stationery items, uniforms and nutritious midday meals
3. Setting up a technical university at Chhattisgarh in association with the state government, with a contribution of INR 50 crore.
Electrosteel Castings to put INR 500 equity for steel plant in Jharkhand
Electrosteel Castings Ltd announced that its board of directors at its meeting held on May 7th 2007 has granted its approval to invest up to INR 500 crores in equity of an associate company Electrosteel Integrated Ltd over a period of 2.5 years, which would be setting up a 1.3 million tonne per annum integrated steel plant in Jharkhand, Such equity investment would be in a phased manner over a period of 2.5 years.
The total outlay on the proposed venture is estimated at INR 4900 crore. The balance equity will, in all likelihood be taken up by a consortium of banks. All this is subject to financial closure.
The plant will produce long products like structural, bars and rods. The project will include manufacture of ductile iron pipes as well.
ECL is installing a sinter plant, which will use iron ore fines instead of the costly lump ore, helping to contain raw material costs. The commissioning of the plant is expected by December. ECL has already received allocation of Parbatpur Coal Block in Jharia coalfield area for mining of coal for captive consumption. Officials said other related infrastructure works are in progress. The benefit of the captive mine is expected to accrue from 2008-09.
During the year, the company has successfully implemented the stamp charging system at its Coke Oven Plant for producing metallurgical coke. The company has also been allotted an iron ore mine in Kodolibad in Jharkhand and infrastructure facilities are being developed.
In order to finance the coalmines and sinter projects, ECL, during 2006-07, successfully raised USD 75 million through issue of zero coupon foreign currency convertible bonds.
Students call for peace at POSCOs project site in Orissa
PTI reported that thousands of school children in Orissa's Jagatsinghpur district have called for maintaining a peaceful atmosphere. As per report, students' letter campaign came in the wake of mobilization of the police force at Kujang some kilometer away from POSCO's proposed steel plant site as tension mounted in the nearby villages.
The report cites as some students as saying that "We are not concerned with anti or pro POSCO movement. We just want peace to prevail in the area. We have the every right to grow in a peaceful atmosphere like our brothers and sisters in other parts of the country. We do not want a repeat of Nandigram and Kalinganagar."
The report also cites a local teacher as saying that "The police mobilization started in the area when the students are overburdened with examinations. The situation has adversely affected children's studies."
TATA Steel inks MoU with Ratan TATA Trust for TSCP
TATA Steel has signed a MoU with Sir Ratan TATA Trust for providing technical support to TATA Steel Centenary Project. The MoU, valid for a period of 5 years beginning April 1st 2007, was recently signed by Mr HD Malesra secretary & chief accountant of the trust and Mr AN Singh deputy MD of corporate services TATA Steel.
According to the MoU, while TATA Steel will depute Jamshedpur based TATA Steel Rural Development Society as its nodal agency for implementing TSCP, Sir Ratan TATA Trust will appoint the Central India Initiative Cell to provide technical support and overall guidance.
TATA Steel has decided to take up land and water management initiatives in predominantly backward tribal blocks of Jharkhand, Chhattisgarh and Orissa as part of its centenary celebrations.
TSCP is an INR 100 crore initiative aimed at improving livelihood of around 40,000 poor tribal households living in around 400 villages of these three states. The project aims to bring assured irrigation facilities to tribals by way of setting up water user cooperatives. It will also result in development of wasteland and promote horticulture and agro forestry while encouraging increased agricultural output through technological up gradation.
Set up by Sir Ratan TATA Trust, Cini will focus on issues related to problems of livelihood of communities across the tribal belt of central India in a comprehensive manner.
BIFR removes Southern Iron and Steel Co from list of sick companies
Southern Iron & Steel Company Ltd announced that the Board for Industrial and Financial Reconstruction by their order dated April 25th 2007 de registered the Company from the purview of the Sick Industrial Companies (Special Provisions) Act of 1985 with immediate effect. It added that it is no more a Sick Industrial Company under the Sick Industrial Companies (Special Provisions) Act, 1985.
Southern Iron & Steel has disclosed a steady growth in net profits for the quarter ended March 2007. During the quarter, the company witnessed a 13.82% YoY rise in profits from INR 367.54 million to INR 418.33 million. Sales for the quarter rose by 39.17% YoY to INR 2,139.07 million compared with the corresponding quarter a year ago.
Sinosteel to restart import of Indian iron ore after government cuts tax
Bloomberg recently reported that Chinese iron ore trading firm Sinosteel Corp would resume buying low grade iron ore from India after Indian government has changed the iron ore export tax structure following the protests from Indian iron or miners and Chinese steelmakers.
Mr Hong Sen Wang MD of Sinosteels Indian unit said that "Of course we will start buying again as more than half of our purchases are low grade ore."
Sinosteel is one of the major buyer of Indian iron ore and imports as much as 10 million tonnes per year. It was among Chinese companies which announced halting of Indian iron ore after Indian government announced INR 300 per tonne tax on exports of all grades of iron ore.
Orissa to announce captive power plant policy soon
It is reported that Orissa government is planning to announce a new policy for the captive power plants operating in the state by June 2007.
The formulation of such a policy has been necessitated following the growing tendency among captive power plants to sell their surplus power to third party instead of the state grid with a motive to earn more profit. Under the proposed policy, the captive power plants will be asked to sell power to the state utilities instead of exporting power to other states. Moreover, it is expected to make the captive power plants accountable to the state utilities.
Orissa government has signed MoU with 13 independent power producers for generating 16,800 MW of power but non allotment of coal blocks has led to a very slow progress of these projects.
Mormugao Port sets new record in iron ore loading
Exim News Service reported that the Mormugao Port Trust has achieved a milestone when a total quantity of 150,016 tonnes of iron ore was loaded on to the vessel MV Golden Bell at the mechanical ore handling plant at Berth No 9 on April 25th 2007.
This is the highest ever quantity of iron ore loaded at the berth, surpassing the previous highest quantity of 139,200 tonnes loaded on to MV Dahlia in March 2006.
The vessel, which berthed at 08.30 HRC on April 24th 2007 and unberthed at 17.30 HRS on April 25th 2007, was chartered by Sesa Goa Ltd and Merchant Shipping was the vessel agent.
TATA Steel orders charging equipments for BF no C
It is reported that the Teesside site of VAI Siemens has clinched a major order in India. The order has been placed by the TATA Steel with Metals Technologies, a division of the Siemens Group Industrial Solutions and Services located at Thornaby in UK.
The project is part of the scheduled re build of TATA Steel's C blast furnace at Jamshedpur. The contract also includes material hopper, valves and the associated Level 1 automation control for the furnace top.
Mr Geoff Wingrove director for Iron and Steel at Siemens said "We are delighted that Tata Steel has become the first steel producer in the world to invest in the very latest furnace charging technology. The award of this contract marks a significant milestone in the development of our blast furnace technology portfolio."
SGS opens a new mineral lab in Chennai
Mining Journal reported that the worlds leading mining and exploration services provider SGS Minerals Services has opened a new facility in India to serve the growing needs of the mineral exploration industry in the country.
SGS Minerals Services new facility at Chennai geochemical lab is equipped with ICP-MS, ICP-OES and AAS for the analysis of major, minor and trace elements and a multi pour fire assay facility for precious metal determinations.
It also complements SGS Minerals Services 8 existing facilities in India and further expands the network of 40 commercial geochemical labs around the world. The lab is also supported by a high volume sample preparation facility.
SGS is also the leader in outsourced on site labs at actual mining sites, with over 50 operating.
Mercator to strike shipping deal with Arcelor Mittal
Times News Network reported that Mercator Lines is likely to strike a deal with the worlds largest steel company Arcelor Mittal. Under the deal, Mercators ships would be among hundreds of vessels hired by Arcelor Mittal every year to move raw materials and steel products across the globe.
As per report, the time charter agreement will start from June or July 2007 when Mercator Lines takes delivery of these 4 dry bulk carriers it is buying for record. Mercator Lines will take delivery of the ship in China. The time charter charges for the deal with Arcelor Mittal are about USD 36,000 per day.
This ship being given to Arcelor Mittal is one of the four ships acquired from Arne Blystad group of companies from Norway. Of the current four ships being bought by Mercator all aged between 1 year to 2 years, 3 are Panamax class gearless carriers and the fourth one will be a Kamsarmax.
NTPC plans geothermal power projects
It is reported that NTPC is planning a foray into geothermal energy by investing INR 500 crore for setting up 30 MW to 50 MW geothermal power plants. It is considering Puga Valley in Ladakh, Manikaran in Himachal Pradesh and some hot spring sites in Uttaranchal as some of the sites for the project.
Geothermal power is a renewable energy source whereby electricity is harnessed from the intense heat present in rocks inside the earth's crust. These power plants use steam, heat or hot water from geothermal reservoirs to provide the force that spins the turbine generators and produces electricity. The used geothermal water is then returned down an injection well into the reservoir to be reheated and to sustain the reservoir.
India currently does not have any commercial scale geothermal based power projects. Individual geothermal power plants can be as small as 100 KW or as large as 100 MW depending on the energy resource. The geothermal power projects cost about INR 9 to INR 10 crore per MW as compared to around INR 4 to INR 4.5 crore per MW for a new thermal power station.
The three countries with the largest amount of installed direct heat use capacity are USA with 5,366 MW, China with 2,814 MW and Iceland with 1,469 MW, accounting for 58% of world capacity, which has reached 16,649 MW. Chevron Corporation is among the largest producer of geothermal energy.
Hindalco 2006-07 net surges by 55% YoY
Aditya Birlas Hindalco Industries net profit in January to March 2007 has recorded at INR 721.3 crore up by 15.16% YoY as against INR 626.3 crore in January to March 2006 and its net sales of INR 4,748.9 crore is up by 30% YoY as against INR 3,657.4 crore in 2006.
Hindalco Industries has reported net profit of INR 2,564.3 crore during 2006-07 up by 55% YoY as against INR 1,655.5 crore in 2005-06. Its turnover also jumped by 61% to INR 18,313 crore from INR 11,396.5 crore. Its revenue from aluminum business increased by 21.5% YoY to INR 7,344.4 crore as compared to INR 6,042.3 crore during 2005-06 and copper business revenue doubled to INR 10,977.6 crore from INR 5,354.2 crore in 2005-06.
Mr D Bhattacharya MD of Hindalco said that Higher capacity utilization up to 106%, increased realization from value added products and strengthening operational efficiencies resulted in both revenues and profits surpassing their respective previous levels. At the same time, factors such as rupee appreciation, import duty cut and duty differential, which have changed dramatically over the years make significant impact on the dollar dominated business.
Ghana likely to order gas turbines from BHEL
It is reported that the Hyderabad unit of Bharat Heavy Electricals Ltd is likely to bag an INR 100 crore order for gas turbines from the ministry for energy of Ghana.
According to a press release, a high level delegation of ministry for energy of Ghana who visited the BHEL unit at Ramachandrapuram enquired many details about BHEL's capabilities in engineering, material procurement, manufacturing and quality control, among others.
The release added that "The Ghana ministry of energy is setting up an INR 100 crore gas turbine based power plant with two Fr-6 gas turbines and is actively considering sourcing of gas turbine from BHEL. The order value could be over INR 100 crore."
Global steel industry commits to reduce CO2
The International Iron and Steel Institute has challenged governments to work with the steel industry to develop new and imaginative approaches to climate change in the post Kyoto period.
In a new policy statement on CO2 and Climate Change, members of the Board of IISI called on governments to replace cap and trade emission regimes with new policies that allow efficient companies to grow and the least efficient to decline. IISI is asking governments to work with the industry to develop and adopt a sector-specific framework that involves all of the major steel-producing countries in the world. The framework encourages the phase-out of obsolete technologies.
Policymakers are also asked to support the steel industry's long term research initiatives for radical new technology solutions which will further reduce CO2 emissions. Governments are requested to develop policies that encourage the demonstration of these innovative technologies. Governments are also asked to engage with industry to develop reporting procedures. These reporting procedures will demonstrate that the voluntary programs, to which the steel industry is committed, are delivering the improvements sought.
The new policy contains a commitment from the steel industry itself to take positive action to achieve further reductions in greenhouse gas emissions and to combat climate change.
The industry will demonstrate this commitment by
1. Promoting the wider implementation of the most efficient technologies used in modern steelmaking sites.
2. Undertaking research and development into new technology solutions which will radically reduce the level of CO2 emissions into the atmosphere for each ton of steel produced.
3. Maximizing both the recycling and re use of end of life steel and the value of steel industry by products.
4. Accounting for and reporting on a common basis the industry's CO2 emissions and its progress on reaching its targets over time.
5. The steel industry will also work in partnership with its customers to encourage the use of a new generation of high strength steels which will improve the energy efficiency of steel using products.
The Board of IISI also challenges their own members and other steel companies, to play their part by working together through IISI and other regional frameworks to share information and best practice.
Citigroup sees possibility of BHPB and Rio Tinto merger
Shares in Rio Tinto PLC and BHP Billiton Ltd surged as a second investment bank threw open the possibility the mining giants could be the latest subjects in a market bursting with acquisition speculation. Rio Tinto shares closed up 5.2% at a record high of AUD 91.38, giving it a market capitalization of AUD 41.7 billion and shares in Melbourne based BHP jumped up by 3% to close at AUD 31.56 valuing it at AUD 105 billion
Mr Clarke Wilkins an analyst with Citigroup in the report released on weekend said that BHPB could afford the USD 100 billion plus needed to take out Rio Tinto. Citigroup said while Rio Tinto's strong cash flow could make it an attractive target for private equity firms, BHP Billiton was a more likely bidder given the synergies that could be generated.
Mr Wilkins said that "Whilst we do not rule out the possibility of a private equity bidder, we think it is more likely that it would be done in joint venture with an existing industry player maybe Anglo American PLC or Xstrata PLC and would also face the same nationalistic control issues surrounding Rio Tinto's key Pilbara iron ore assets, but we think BHP Billiton is a much more likely bidder given synergies and nationalistic control issue of Australian assets.
Citigroup said that a BHP bid with 50% debt funding and at a 30% premium to Rio Tinto's share price would add more than 7% to BHP's earnings per share in fiscal 2008 and 2009.
Apart from competition concerns, Citigroup listed the lack of an anointed chief executive to replace Mr Chip Goodyear as a major near-term impediment to any bid. The brokerage said the disposal of non core assets could overcome the competition concerns.
Mr Kirchner asks Mr Chavez not to take over Sidor
According to reports in La Nacion and Clarin newspapers, Mr Nestor Kirchner president of Argentina has asked Mr Hugo Chavez president of Venezuela not to take over the Sidor, which is majority owned by Ternium SA a part of an Argentinean Techint Group. Mr Kirchner and Mr Chavez are South American political allies.
The reports in the newspapers also said that Mr Paolo Rocca owner of Techint will travel to Caracas on May 14th to 16th to meet with Mr Chavez.
Mr Chavez recently said that he would issue a decree forcing Venezuela's largest steelmaker Sidor Ternium to supply the local market and threatened to nationalize it complaining that it is mainly exports its steel, leaving Venezuela to import steel from far away.
Mr Kirchner and Mr Chavez are South American political allies and Venezuela has purchased billions of dollars in Argentine sovereign debt.
The biggest industrial group in Argentina Techint also controls a steel tube maker Tenaris. Tenaris and Ternium have both grown through large acquisitions in recent years, in the United States and Mexico.
Alcoa makes USD 33 billion hostile offer for Alcan
Alcoa Inc. said it plans to make an unsolicited USD 26.9 billion cash and stock takeover offer for Alcan Inc. to create the world's largest aluminum producer as metal prices rally. Alcoa Inc announced that it will offer to acquire all of the outstanding common shares of Alcan Inc for USD 58.6 in cash and 0.4108 of a share of Alcoa common stock for each outstanding common share of Alcan. The offer, which has a value of USD 73.25 per Alcan share, will begin on May 8th 2007.
The Alcoa offer represents a 32% premium to Alcan's average closing price on the NYSE over the last 30 trading days, and a 20% premium to Alcan's closing price on May 4th 2007, its all time high.
Mr Alain Belda CEO of Aloca said This offer follows almost two years of discussions between our companies regarding a variety of potential business combination transactions, including unsuccessful board level discussions of a merger transaction last fall. We are very disappointed that those efforts did not result in a negotiated transaction a conclusion we would have strongly preferred. We believe firmly in the compelling strategic rationale behind the combination of Alcoa and Alcan and are convinced that this transaction creates substantial value for both sets of shareholders and for our customers around the world. We are therefore taking our offer directly to Alcan shareholders.
Mr Belda added that The combination of Alcoa and Alcan will significantly deepen an already extensive commitment by both companies to Canada, and it will ensure that Canada remains a world leader in the mining and metals industry. The new company will have dual head offices in Montrl and New York, with strategic management functions located in each city. Montrl also will become the headquarters for our global primary products business, which will increase the size and importance of the global business headquartered in Canada.
Aloca said that The combination of Alcoa and Alcan creates a stronger, more diverse global competitor with the scale and cost structure to be competitive over the long term within a rapidly changing industry landscape.
Alcoa had been the world's largest aluminum producer until March, when Russia's Rusal was created by the merger of OAO Russian Aluminium, OAO Sual Group and the alumina assets of Swiss trader Glencore International AG. Rusal produces about 4 million metric tons a year, compared with Alcoa's 3.5 million tons. Alcoa, still the biggest aluminum company by sales, said today a combination with Alcan would create a company with 7.8 million tons of production capacity and USD 54 billion in sales.
Nippon Steel may build steel unit in Thailand
Nippon Steel Corp confirmed that it may build a plant in Thailand to meet rising demand from automakers in Thailand.
Mr Masato Suzuki spokesman of Nippon in response to an NHK Television report that Nippon Steel would build a steel facility said that "It is true that we are considering steps to meet growing demand in Thailand in the future. We are examining capacity in Thailand but nothing has been decided.
The report said that Nippon Steel is considering how much to spend and where to put the new production facilities, which it hopes to have up and running as soon as possible because many Japanese car makers will expand their production in Thailand next year.
According to data from Toyota Motor Thailand, Nippon Steel may expand in Thailand amid surging demand from Japanese carmakers, which control about 90% of the Thailand's auto market.
ThyssenKrupp to concentrate slab logistics at Rotterdam Port
ThyssenKrupp Steel, which is carrying out significant investment to expand its capacities on both sides of the Atlantic, has decided to transship the slabs at the port of Rotterdam as part of its forward strategy for profitable growth. ThyssenKrupp Steel is currently building a steel mill in Brazil, which will ship 2.1 million tonnes of steel slabs to Europe each year after 2009, to be processed into flat steel products at its sites in Germany.
The Port of Rotterdam Authority will create the necessary infrastructure for this and the logistics company Steinweg will build a highly modern terminal with storage capacities and cranes and for the first time, the slabs will be handled by means of magnets. In addition, the combination of slab and container handling at the new terminal will provide maximum flexibility and productivity.
Onward transportation of the slabs to the production sites of ThyssenKrupp Steel in Duisburg and Bochum will be by barge and rail.
ThyssenKrupp Steel will therefore be concentrating its slab logistics in Rotterdam, where it also traditionally handles raw materials such as iron ore and coal. Independently of this decision, steel exports for overseas destinations will continue to be handled via the port of Antwerp. Here ThyssenKrupp Steel owns interests in a sea freight forwarding company and a transshipment terminal.
US ITC to conduct Sunset Review for SS bars
The US International Trade Commission has voted to conduct full 5 year sunset reviews concerning the countervailing duty order on stainless steel bar from Italy and antidumping duty orders on imports of this product from France, Germany, Italy, Korea and the United Kingdom.
As a result of recent votes the Commission will conduct full reviews to determine whether revocation of these orders would be likely to lead to continuation or recurrence of material injury within a reasonably foreseeable time.
The Uruguay Round Agreements Act requires the Department of Commerce to revoke an antidumping or countervailing duty order, or terminate a suspension agreement, after five years unless the Department of Commerce and the ITC determine that revoking the order or terminating the suspension agreement would be likely to lead to continuation or recurrence of dumping or subsidies and of material injury within a reasonably foreseeable time.
Acerinox Q1 net surges by 807.5% YoY
Acerinox SA announced that its net profit during January to March 2007 increased by 807.5% YoY to EUR 210.2 million from EUR 23.1 million during January to March 2006.
Acerinoxs total sales in Q1 of 2007 increased by 83.9% YoY to EUR 2.143 billion from EUR 1.165 billion in q1 of 2006 and EBIT rose by 741.1% YoY to EUR 343.5 million while EBITDA rose by 1,121.9 % YoY to EUR 381.6 million from EUR 31.2 million.
Acerinox SA in a statement said the surge in YoY profit was due to higher base prices buoyed by a 50% rise in nickel prices on rising global demand.
Ethiopia prepares strategic plan to fully meet steel demand
It is reported that Ethiopias ministry of trade and industry has prepared a strategic plan that would strengthen the steel industry and eventually meet the steel demand of the country in the coming 10 years.
Mr Getahun Taddese head of metal products development center with the ministry said that the strategic plan is prepared to locally produce steel required for development activities to be carried out in accordance with the industry and rural development strategies. He added that the moves to support the activities of the steel industry with plan, study and research will enable to produce steel locally and substitute import.
Mr Getahun indicated that the new plan will enable Ethiopia to save the ETB 14 billion it annually spends for importing steel besides it will support the ever growing construction sector and build the capacity to supply inputs of steel and steel products for big, medium and light industries.
He added that the center is making preparations to implement the plan beginning next fiscal year following its ratification at the end of this budget year. Relevant government bodies and owners of industries as well as professionals in the sector would discuss the strategic plan.
The metal products development center which was established in 2004 under the ministry aims at supporting exporters, micro and small entrepreneurs, light, medium and big industries and introduce new technologies.
Uralmashzavod to supply 2 teeming cranes to SeverStal
It is reported that Russian Uralmashzavod has signed a RUB 300 million agreement with SeverStal to provide two 500 tonne pouring cranes in April and May 2008.
All the design and planning is to be performed by Moscow based VNIIPTMASH and Uralmashzavods R&D department. Uralmashzavod said that these will be AC variable frequency cranes which means they are not too heavy and cheaper to maintain meant for operating in SeverStals steel plant for filling converters with liquid metal.
Uralmashzavod has already made Russias most powerful 520 ton pouring crane, two blast furnace jackets, a modern continuous casting plant, a unique charging box magnet crane and other pieces of equipment for SeverStal.
Uralmashzavod deals in engineering, producing, and supplying mining, metallurgical, hydraulic turbine, by product coking, and cement-making equipment, handling machinery, and ancillary equipment for nuclear power plants.
Gerdau to complete Acominas steelworks expansion in 2007
Brazilian Gerdau SA in a statement said that it expects to complete the expansion of its Acominas steelworks by the second half of 2007, which will raise its production capacity to 4.5 million tonnes per year from current 3 million tonnes.
Mr Schirmer director of finance department of Gerdau said that the mill will specialize in steel plate production and a small part of them will be exported to overseas market.
Gerdau plans to invest USD 4 billion by 2009 to increase the crude steel production from 19.5 million tonnes to 21.9 million tonnes.
Nigeria shortlists 36 companies to bid for 9 coal blocks
Vanguard reported that 36 local and foreign companies have been short listed to bid for the 9 blocks of coal deposits in Nigeria.
Mr Denis Okafor MD of the Nigerian Coal Corporation told media that the selected companies would be invited to inspect the blocks after which they would be allowed to bid for them. According to him, the foreign companies are from Canada, China and India.
He said successful companies would be given license to operate after they might have reached an agreement with the local communities on their mode of operation.
Nigerian federal government under its privatization program has resolved to partition all the coal deposits in the country into 10 blocks, but one of the blocks in Benue State is currently embroiled in a legal suit.
Mr Okafor added that "The advantage of this is that instead of having one coal corporation, we will have nine coal companies like we have in the telecoms industry.
Allegheny Technologies Q1 profit surges by 86% YoY
Allegheny Technologies Inc announced last week that its Q1 profit jumped up by 85.7% YoY due to improved sales in its high performance metals and flat rolled products segments. Alleghenys sales rose by 16% YoY in the high performance metals unit and 52% YoY in the flat rolled products segment.
Alleghenys net income in January to March 2007 period increased to USD 197.8 million as compared to USD 106.5 million in January to March 2006. Alleghenys revenues for the quarter also increased by 32% YoY to USD 1.37 billion from USD 1.04 billion in Q1 of 2006.
The current quarter's results include an expense of USD 4.4 million associated with the early resolution of new labor agreements which was offset by a USD 4.2 million one time tax benefit related to an adjustment of state deferred tax valuation allowances.
Mr L Patrick Hassey chairman, president & CEO of Allegheny Technologies said that "Our key growth markets remain strong and we are well positioned to benefit from these strong markets."
Mr Hassey forecast 25% growth in the company's titanium business this year and said that Given demand from the aerospace industry, the business could grow at a comparable clip for several years.
Syrian Hmisho Trading to set up a rebar & wire rod mill
It is reported that Syrias Hmisho Trading Group is planning to commission a new bar rolling mill of 300,000 tonnes per year capacity in October to December 2007 quarter.
Hmisho Trading Group has signed a contract with Germanys SMS Meer for supply of the plant including a reheating furnace for square billets of 130mm and a single strand continuous rolling mill comprising a roughing mill, an intermediate finishing multi pass train, a finishing block, two water cooling sections and other auxiliary equipment. The machinery will also include a billet welding machine which will allow rolling bars of various lengths.
The mill will produce rebar 8mm to 40 mm and wire rod 5.5mm to 16mm of low and medium carbon steel. The mill output will be sold mostly to domestic market and a part of it is planned for export to the Middle Eastern countries.
Hmisho Trading Group will receive square billet for the mill operation in accordance with earlier established contacts with steelmakers.
Peter Hambro to join Garinsky iron ore project in Russia
RIA Novosti reported that UK based Peter Hambro Mining will help the administration of the Amur Region in Russia's Far East to develop a large iron ore deposit.
The press secretary of the regional governor said that Under an agreement signed by the parties, Peter Hambro Mining will draft a feasibility study and design documentation for the investment project worth more than RUB 30 billion (USD 1.2 billion) to develop the Garinsky iron ore field while the local administration will coordinate this effort. The project stipulates the construction of a mining and metallurgical complex at the Garinsky deposit and the creation of the relevant transport, energy and social infrastructure.
The new complex, with a designed capacity of at least 10.5 million tonnes of iron ore a year, is expected to be commissioned by January 2013.
Peter Hambro Mining holds over 50 prospecting and mining licenses, with operations focused in Siberia.
CVRD closes the public offer of Usiminas common shares
Companhia Vale do Rio Doce has informed the market and its shareholders that the closing of the secondary public offering of common shares issued by Usinas Siderrgicas de Minas Gerais SA, carried out with Caixa de Previdcia dos Funcionios do Banco do Brasil, occurred yesterday.
Pursuant to the Offering, CVRD sold 13,802,499 shares, 14,676 shares of which were in the form of global depositary shares and received total proceeds of BRR 1,475.5 million, equivalent to the price of BRR 110 per common share and USD 54.36 per GDS, which were determined in accordance with the book building process.
The offer initially included 12,034,078 shares owned by CVRD, but the CVRD granted an option to the global coordinator of the offering to sell up to 1,805,112 additional Shares owned by CVRD, under the same terms and the same price of the shares initially offered, to attend over allotment, if any. The coordinator partially exercised its option, having acquired 1,768,421 of these additional shares.
CVRD will keep 6,608,608 shares, which were not subject to the offering and are bound by the current shareholders agreement of Usiminas signed by CVRD, which is a member of the controlling shareholder group of Usiminas.
Ryerson Incs Q1 net dip by 13.2% YoY
Ryerson Inc announced that its net income during January to March 2007 quarter was USD 28.1 million as compared with USD 32.4 million in the Q1 of 2006 and a net loss of USD 4.4 million in the Q4 of 2006.
Sales for the Q1 of 2007 increased to USD 1.7 billion as compared to USD 1.4 billion in Q1 of 2006. The average selling price per ton increase of 18.4 % was partially offset by a 3% decline in tons shipped.
Mr Neil S Novich chairman president and CEO of Ryerson said "We are pleased with the progress we made in the Q1 of 2007. In the Q3 of 2006 we put in place new supply chain management and improved inventory processes. We saw the result in theQ1 of 2007 with current value of inventory down USD 241 million or 15% from the end of 2006 and we are on track to attain our goal of 5 turns by year end 2007.
In mid-2006, we also began a project to address the profitability of five large underperforming service centers.
Mr S Novich added that We made substantial progress in the Q1 of 2007 and are on track to attain operating profit improvement of USD 30 million in 2007. Overall operating expenses are under good control as Integris integration cost savings and productivity gains more than offset inflation. Furthermore, we made progress on our other strategic initiatives including the upgrade to a single, modern IT platform, and have now successfully converted the first ten Integris service centers."
Pakistans chamber of commerce call for uniform import duty
Pakistani media reported that Federation of Pakistan Chambers of Commerce and Industry has called for uniform import duty on both prime and secondary steel products. The existing rates of customs duty on prime and secondary steel are 10% and 20% respectively.
The report said the FPCCI had suggested to Pakistans Central Board of Revenue that there should be 10% duty on both prime and secondary steel which would result in boosting engineering industry in the country as well in capping the menace of corruption and misdeclaration.
FPCCI also suggested that duty on silicon steel should be raised from 5% to 20%. This will discourage the misuse of lower rate of duty on silicon sheets and coils as some of the steel importers are importing hot rolled, cold rolled, and GP etc, where the duty on these products is higher, as silicon steel.
According to the report FPCCI has demanded that a standing committee should be formed at Karachi Customs Collectorate comprising of custom officials and representatives of trade bodies for resolving controversies and problems in proper appraisement of consignment of steel rerollable scrap and steel billets.
Due to acute shortage of steel raw materials in international markets and practical problems including labor costs on supplier's ends, many deviations were committed by suppliers and shippers of steel re-rollable scrap, on which the importer has little or no control and the importer suffers for no fault on his part. Therefore, maximum relief demanded for such importers. Moreover, permission should be granted for removal of consignment to public warehouse in case the consignment could not fulfill the requirement of Section 27(A).
S&P puts SSAB ratings on negative watch
Standard & Poor's Ratings Services has placed its BBB+ corporate credit ratings of Sweden based steel maker SSAB Svenskt Stal AB on negative creditwatch on news of the company buying Canada based IPSCO Inc for USD 8.2 billion.
S&P in a release said that the rating action reflects the predominantly debt financed nature of the proposed acquisition, which will significantly increase the debt burden and weaken its credit ratios. It said that If the deal goes through, we expect the additional debt to hinder SSAB's plans for expansion investments or other capital spending initiatives.
S&P added that this is a substantial acquisition, which wills roughly double SSAB's annual production to about 8 million tonnes.
Hyundai Heavys Q1 net surges 16 folds
World's largest shipbuilder, Hyundai Heavy Industries Co announced that its first quarter earnings jumped up more than 16 fold from a year ago on increased orders for high priced ships.
Its net profit amounted to KWR 371 billion (USD 402 million) in the January to March 2007 period as compared with KWR 23 billion won a year earlier.
USs last week steel production down by 6.5% YoY
US domestic raw steel production was recorded 2.062 million net tons while the capability utilization rate was 86.2% in the week ending May 5th 2007 as compared to production of 2.206 million net tons in the week ending May 5th 2006 when the capability utilization then was 92.1 %. The current week production represents a 6.5 % decrease from the same period in 2006.
Production for the week ending May 5th 2007 is up by1.4% from the previous week ending April 28th 2007 when production was 2.032 million net tons and the rate of capability utilization was 84.9%.
Adjusted YTD production through May 5th 2007 is 35.601 million net tons at a capability utilization rate of 84%, which is 7.3% YoY decrease from the 38.423 million net tons during the same period in 2006 when the capability utilization rate was 89.7%.
AISIs estimates are based on reports from companies representing about 75% of the USs raw steel capability.
Aceros Arequipa Q1 profits hit due to expansion related shutdowns
Peruvian steelmaker Aceros Arequipa reported that it made PEI 18.4 million (USD 5.75 million) in profits during the Q1 of 2007 down from PEI 37.9 million in 2006 period mainly due to higher costs. Aceros Arequipa said that its total gross revenues came to PEI 320 million in 1Q of 2007 as compared to PEI 276 million YoY while sales costs rose to PEI 262 million from PEI 192 million in previous year.
Aceros Arequipa sold close to 144,000 tonnes of steel products or 10% more than in 2006 period and 7% more QoQ.
Aceros Arequipa continued to prepare for a scheduled ramp up of its capacity to 530,000 tonnes per year, which is due to start its first phase in June 2007. In order to compensate for a temporary plant shutdown related to the expansion, the company has started buying foreign steel to cover its sales contracts, partly accounting for a sharp rise in financial costs
Aceros Arequipa produces corrugated iron wire profiles and other steel products for the construction sector.
Ukraines coal production down by 2.8% YoY in January to April
It is reported that Ukraine coal production reduced by 2.8% YoY during January to April 2007 to 26.059 million tons. Ukraines Coal Ministry said that coking coal production also went down by 6.1% YoY to 9.853 million tons and steam coal down by 0.6% YoY to 16.207 million tons.
Ukraine had raised coal production by 2.8% YoY in 2006 to 80.257 million tons when its coking coal production fell by 8.2% YoY to 30.145 million tons and thermal coal output rose by 10.9% YoY to 50.112 million tons.
Yuzhuralnickel output up by 20% YoY in January to April
It is reported that Russian Yuzhuralnickel production during January to April 2007 was 5,500 tons which is a 20% YoY increase as compared to during January to April 2006.
Yuzhuralnickels output in this April 2007 was 1,432 tons up by 18% YoY as compared with April 2006.
Yuzhuralnickels nickel production in 2006 totaled 14,400 tons up by 14% YoY.
Ukraines construction sector up at 16% YoY in January to March
Ukraines State Statistics Committee said that the volume of construction and maintenance work done in January to March 2007 is up by 16% YoY to UAH 8.3 billion as compared to January to March 20076.
The committee said that the growth in construction work was seen in all types of building in particular a 16.4% rise in the construction of buildings, a 12.4% rise in the installing of engineering equipment at buildings and a 16.1% rise in the preparation of plots for construction.
