Indian iron ore export prices reach USD 125 mark

China Chamber of Commerce of Metals Minerals and Chemicals Importers and Exporters released the average reference prices for import transactions of Fe 63.5% Indian iron ore concluded last week on August 20th 2007.

These are the highest ever reported spot prices for iron ore

The change is with respect to prices posted on August 20th 2007

The movement of CCCM released prices over last one year indicates an increase of 78% in FOB prices and 79% in CIF prices. The price increase since July itself has been about 24% for FOB delivery and 19% for CIF deliveries. There have been reports that iron ore exporters are eying USD 100 per tonne on FOB basis now

In USD

The CCCMC reference prices are average prices for import transactions of Fe 63.5% Indian iron ore concluded the week prior to issuance date of such reference prices and the reference price practice is intended to regulate the domestic trading of Indian iron ore and avoid speculation on the raw material for China's booming steel industry.

Essar Steel to expand steel service center capacity in India

Essar Steel announced the augmentation of its steel service center capacity in India to 2 million tonnes from the current 1.2 million tonnes at Hazira in Gujarat to meet the growing demand for ready to use steel.

Essar is in the process of setting up three Service Centers at the Auto clusters in Chennai, Pune and the NCR Region to support its growing presence in the Automobile and appliance sectors. Each service center would add 250,000 tonnes per annum capacity. The service centre at Chennai is expected to become operational in third quarter of the current fiscal and the remaining two in the last quarter.

Each Steel Service Center will have the capacity to slit coils to narrow widths and cut them to the desired blank size and to process cold rolled and hot rolled products and provide steel in sheet sizes as per requirements of the end users. The lines have been designed to handle cold rolled, hot rolled and galvanized steel for its target segments of automobile and appliances. The equipment is designed to meet the most stringent requirements of slit edge, burr, length tolerance, table top flatness and surface inspection. This processing capability is being backed by ERP implementation of SAP and i2.

The move is seen as a logical extension of the “Go Retail” buzzword at Essar today and the desire of the company to be as close to end consumers of its products as is possible.

Steel ministry to recommend import duty waiver for scarp

Mr Ram Vilas Paswan union minister for steel, chemicals and fertilizers while talking to newsmen after addressing the Steel Consumers Council meeting announced that the ministry of steel would request the finance ministry to review the 5% customs duty on imported scrap.

During the meeting, secondary steel producers made a demand for abolishing the 5% import duty at the council meeting saying that there is already a 4% CVD on scrap barring a few exceptions.

Earlier delivering the inaugural address at the meeting of the council, the minister said “In order to contain the prices, the steel producers have been requested by the committee to keep a check on the ex factory prices of long products and also to balance their exports keeping in view the domestic demand and not to commit exports at the cost of domestic demand.”

No steel exports below domestic market price

It is reported that Indian steel ministry has directed domestic steel producers to stop the practice forthwith of selling steel products in international markets at rates lower than that prevailing domestic prices as it is causing an artificial price hike in the domestic market.

Mr Ram Vilas Paswan union steel minister while speaking to newspersons after the conclusion of the 21st Steel Consumers’ Council meeting said “We have asked the producers to export steel at domestic market prices only, so that there is no artificial demand supply gap here.”

Mr Paswan said: “We have directed public sector steel makers, including SAIL and RINL, not to export steel at lower prices and will also initiate steps to prevent such exports by private companies.”

JSW Steel board to decide on US acquisitions today

JSW Steel Limited informed BSE that a meeting of its board of directors will be held on August 21st 2007 for evaluating the feasibility of acquisition of plate mill, pipe mill and double jointing & coating facilities in the USA after taking into account the due diligence reports submitted by various reputed International Agencies.

As per media reports, the target companies would be Jindal Enterprises LLC, Jindal United Steel Corp and SAW Pipes USA. Jindal Enterprises LLC is a wholly owned subsidiary of PR Jindal group’s flagship Jindal Saw. Jindal Enterprises holds a 49% stake in Jindal United Steel Corp, which has a steel plate mill with an annual capacity of 1.2 million tonnes. A Jindal Saw subsidiary owns 19.47% stake in SAW Pipes USA, which has an annual capacity of 50,000 tonnes of steel pipes. Jindal Saw has toll conversion agreements with JUSC and SAW Pipes USA under which it provides the raw materials and these companies manufacture finished goods and charge a manufacturing or tolling fee. Jindal Saw markets these products through a Texas based branch.

Mr Sajjan Jindal had told Business Standard a fortnight ago that US acquisitions would be funded through a leveraged buy out, which entails financing an acquisition by leveraging the target company’s balance sheet. JSW sources said after the acquisition, the company would ship slabs from its Vijaynagar or proposed Bengal plant in India and then finish them at the rolling mills in the US.

Chhattisgarh asks NMDC to expedite Romelt based steel plant

BS reported that Chhattisgarh government is threatening to ban transportation of mineral from India’s biggest iron ore producer and exporter National Mineral Development Corporation facilities if it fails to initiate the process of setting up its proposed steel plant in Bastar region of Chattisgarh.

Dr Raman Singh chief minister of Chattisgarh told reporters that “The state government is giving all facilities to set up the plant in the tribal dominated Bastar region. But it will not entertain delay. If the company delayed the project further, the government would cancel the land allotted to the NMDC and give it to others willing to set up the plant.’

Mr Singh added that the state government could even consider banning the transportation of iron ore from the NMDC facilities in the state.

NMDC’s proposal for the plant was finalized in early 1990s but the foundation stone was laid in September 2003. The INR 300 crore project of NMDC was to come up with the unique Romelt technology developed by Moscow Institute of Steel and Alloys of Russia.

The NMDC Iron and Steel Plant at Nagarnaar, about 20 kilometer from the headquarters of Bastar in Jagdalpur, was planned to produce 300,000 tonnes of pig iron per annum in the first phase and 1.5 million tonnes per annum in the final phase by adding two more modules of 0.6 million tonnes each. A total 403 hectares of land was acquired, including 288.99 hectares of private land and 114.01 hectares of government land. A boundary wall constructed by the company is the only work completed so far.

The report cites some NMDC officials as saying that the cost of Romelt technology had increased considerably, forcing the company to put the steel plant proposal on hold. They added that the company was now considering another proposal to set up a sponge iron unit at the proposed site.

National Safety award for TATA Steel’s Jharia division

It is reported that Bhelatand Amalgamated Colliery and Sijua Colliery of Jharia Division of TATA Steel have been given the National Safety Awards.

In the category of difficult underground mines, Bhelatand amalgamated colliery has been selected as the winners for the Longest Accident Free Period for year 2004 and 2006. Bhelatand amalgamated colliery was declared the Winner in 2003 also.

Sijua colliery has been selected as runners up for the Longest Accident Free period for the year 2005. It has received this National Award for the first time in its history.

Sijua and Bhelatand colliery are the underground coal mines, in Jharia division of TATA Steel. They are both Degree II gassy mines with a maximum working depth of over 450 meters. TATA Steel’s Jharia Division has become the first underground coal mines in the country to get OHSAS 18001:1999 certificate of approval from Indian Register Quality System. The division is also the first underground coal mines to get EMS 14001:2004. Jharia division has been given this certificate of approval for its continued improvement to conform to the Occupational health and safety management system specification and Environment management system Standards.

A company release said that “With TATA Steel focusing and promoting strongly safety, this award is an exemplary achievement. The underground mine has registered an accident free year, which is truly commendable. This award that has been conferred on Jharia division of TATA Steel is yet another step in the direction of ensuring safe practices at work places.”

Established in 1907 as Asia's first integrated private sector steel company, TATA Steel today is the world sixth largest steel producer with geographic footprints in India, South East Asia, UK and Europe. With the recent acquisition of Corus Limited, the combined enterprise has a pro forma crude steel capacity of 28.1 million tonnes and finished steel capacity of 30.9 million tonnes in 2007 with over 84,000 employees across the four continents.

Anti POSCO activists protest through Bol Bom Yatra

KalingaTimes reported that as thousands of people across Orissa were going on the annual Bol Bom Yatra, which was organized under the banner of Udyam Yuva Sangathan, a youth organization to worship Lord Shiva in different temples. The report added that another group of youths from Jagatsinghpur district of Orissa recently took out a similar journey to the Lingaraj temple opposing the proposed 12 million tonne steel plant of POSCO India in the State.

Calling their protest journey as Sanskruti Suraksha Bol Bom Yatra, the youths collected water from Gadagadia Ghat on Mahanadi River at Cuttack and walked barefoot towards Bhubaneswar. They took a vow to continue their opposition to the POSCO steel project. However, unlike the Bol Bom devotees who wear traditional religious clothes, the anti POSCO activists wore T shirts with slogans such “No to POSCO” and “POSCO Hatao, Desh Bachao” the activists said the Korean company should leave the country.

The activists who hailed from the three gram panchayats of Dhinkia, Nuagaon and Gadakujang, where people were facing displacement due to the proposed steel plant, said that they would continue their opposition the steel project in the days to come. The activists said it would not only displace thousands of people and affect their livelihoods, it would also create severe water crisis in their district by using the water from Mahanadi. The activists further said the POSCO steel project would also affect the livelihoods of thousands of tribal in Keonjhar district as the Korean company had plans to extract iron ore from Khandadhar hills.

IIMT develops column floatation beneficiation technology

New Ind Press recently reported that in a major breakthrough, Institute of Minerals and Materials Technology formerly known as Regional Research Laboratory, has developed a technology called column flotation for treating fine iron ore particles and low grade ores which are left dumped. As per report, the technology promises optimum utilization of resources at low cost.

Institute of Minerals and Materials Technology has already installed a pilot column at TATA Steel's West Bokaro Coal Washery and at Sudamudih Coal Washery in Ranchi for recovery of coal fines from plant tailings and low grade coalmines.

Institute of Minerals and Materials Technology Recently signed MoU with Kolkata based Tega industries for commercial exploitation of the product and would implement it in an iron ore project to start tests. Mr BK Mishra director of Institute of Minerals and Materials Technology that the technology transfer would take place in a month's time.

Mr Mehul Mohanka ED of Tega Industries Inc said "In course of time we would also talk with phosphorous and graphite industries. Tega would also explore the possibility of introducing it in foreign markets like Australia, South Africa and Canada."

As per report, the first commercial column flotation was installed in Les Mines Gaspe at Quebec in Canada in 1981.

POSCO plans to start construction by October 2007

PTI reported that POSCO has decided to begin construction work on the 12 million tonne plant in Orissa by October 2007. The report cited Mr Soung Sik Cho CMD of POSCO India as saying that "We will begin construction work of our 12 million tonnes project in Orissa's Jagatsinghpur district by October 2007 on whatever land we have acquired so far."

As per report, POSCO has decided to begin construction work initially on 400 acres of non-forest land and then on the revenue land yet to be given to it by the Orissa government.

He said that "We believe things have undergone a sea change during the last few months. People are clearly convinced that they will benefit from the project. Now they have a better understanding of the entire situation. Actually things are now looking much brighter. We have also received the official nod for our captive port project at Jatadhari, which has also encouraged us. He added that now the only issue remains to be resolved is granting captive iron ore mines to us. But here also I believe things are moving in the right direction."

Torrent Power eying coalmines and power sector in Botswana

It is reported that Ahmedabad based Torrent Power is seeking to invest USD 500 million in coal mining in Botswana and exploring prospects for generating and distributing power in the country.

As per report, a two member delegation of Torrent Power and Indian owned South African diamond cutting and polishing company Rosyblue called on Mr Festus Mogae president of Botswana recently to explore business opportunities in the landlocked nation. Mr Sudhir Mehta chairman of Torrent and Mr Dilip Mehta CEO of Rosyblue also held talks with Mr Ponatshego Kediklwe minister for minerals energy and water resources in Botswana.

Mr Sudhir Mehta later held discussions with officials of the Botswana Power Corporation and indicated that his company was keen to mine coal for export to India where there is huge demand. Mr Mehta said that “We are ready to invest at least USD 500 million in the project as soon as possible.”

POSCO team visits TATA Steel’s project site in Kalinga Nagar

It is reported that a 12 member delegation comprising of POSCO and state government officials recently visited the site of TATA proposed steel plant at Kalinga Nagar. The move was apparently aimed to familiarize POSCO officials with the kind of displacement related work that had taken place and the rehabilitation of ousted.

They visited TATA three transit rehabilitation colonies at Trijanga, Sunsailo and Danagadi in the industrial complex area and interacted with people about various measures taken by TATA.

Mr Dillip Kumar Mohanty ADM of Paradip said " POSCO’s senior executive VP, who is also the CMD of POSCO India and other senior officials accompanied me to discuss about the rehabilitation and resettlement policy adopted by the TATAs. We discussed with some of the displaced people to know about the rehabilitation measures taken by TATA Steel. We also consulted with officials from district administration how they tackled the people during land acquisition process."

The officials did not however talk to leaders of the Visthapan Virodhi Jana Manch, which has been spearheading the tribal movement against industrialization in Kalinga Nagar since police firing incident.

Global crude steel production in July up by 5.3% YoY

International Iron and Steel Institute reported that the total crude steel production in July 2007 for the 67 countries is 109.9 million tonnes up by 5.3% YoY as compared to July 2006. The global crude steel production in January to July 2007 is 703.482 million tonne up by 8.1% YoY.

The growth in crude steel production during April 2007 among regions was again led by Asia as usual

In ‘000 tonnes
Source IISI
EU figures are not comparable as the number of countries has changed

Among the top 20 nations, China as usual stood first with 41.500 million tonne production of crude steel registering tremendous growth of 13.2% YoY as compared to June 2006.

In ‘000 tonnes
Source IISI

Please note:
1. Many figures are estimates due to the summer holidays in the Northern Hemisphere.
2. India continues to be at 7th spot, although Indian government has recently revised steel production figures for 2006 taking it to 6th spot.

Baosteel revises down Q4 prices

Top Chinese steelmaker Baosteel announced this afternoon its price change details for Q4 2007 productions, with prices of major steel varieties slightly revised downward.

All price changes listed below are exclusive of 17% VAT and will come into force as of the date of issuance ie Aug 20th 2007.

Change is in CNY per tonne

Conisdering the USD to CNY conversion rate of 1:7.587, the announced changes in USD per tonne amount to the following

No change is announced for following items

(Sourced from MySteel.net)

OneSteel acquires SS distributor Fagersta Group

OneSteel Limited announced that it has acquired Fagersta Group, which is Australia’s fourth largest stainless steel distributor. The acquisition of 100% of equity in Fagersta will be completed on 3rd September 2007. The Fagersta business will add to the sheet, coil and Aluminum division of OneSteel’s Distribution business.

Fagersta generates sales of around AUD 70 million per annum through its five sites in Brisbane, Sydney, Melbourne, Shepparton and Adelaide. The 43 year old privately owned business has 60 employees.

Mr Geoff Plummer MD & CEO of OneSteel said that “OneSteel will continue to run Fagersta as a separate business using its existing brand sites and management team under Mr Jan Persson CEO of Fagersta.”

He added that “The acquisition of Fagersta is a good strategic fit for OneSteel. Demand for stainless steel products has been growing strongly both globally and domestically and it has exposure to a broader market segment base than carbon steel. When added to OneSteel’s carbon steel and aluminum product capability, OneSteel gains a competitive advantage and differentiated position in the market.”

OneSteel has identified several areas to drive value out of the acquisition including working capital improvements sales and purchasing synergies as a result of combining the management of OneSteel and Fagersta stainless steel purchasing.

The acquisition follows OneSteel’s purchase of Midalia Steel in 2004 through which a small customer targeted brand has prospered through differentiation and focus.”

ThyssenKrupp Materials NA acquires OnlineMetals.com

ThyssenKrupp Materials NA Inc, the parent company of ThyssenKrupp Services’ materials services operations in the NAFTA region, is taking over retroactively as of August 1st 2007, the US web based retailer of metals and plastics OnlineMetals.com, headquartered in Seattle. The purchase includes all inventories and the IT platform for product marketing.

OnlineMetals.com will be integrated into the ThyssenKrupp Materials NA distribution operations as an autonomous business unit focused on online processing of small orders and thus ideally complementing the existing stock-keeping wholesale business model. The distribution model will allow access to customer segments on which classical wholesalers do not focus their operations.

OnlineMetals.com ships internationally and has a broad customer base in North America. It offers a broad range of metals and plastics including stainless, aluminum, copper, brass, titanium, tool steel, special alloys, carbon steel, composite products and industrial plastics. It also specializes in standard precut shapes and sizes, materials processing and just-in-time deliveries. The business model and IT platform will within the foreseeable future contribute toward rounding off the materials marketing operations on the European markets and hence support business with small-order customers.

Worthington ink JV with Magnetto Group for Kosice facility

Worthington Industries Inc has announced that its Worthington Steel Company has signed an agreement to form a JV with The Magnetto Group to operate a steel processing facility at Kosice in Slovakia. The transaction is expected to close in September 2007 with operations beginning shortly thereafter.

Mr John P McConnell chairman & CEO of Worthington Industries said that "This JV aligns with our stated goal of growing our steel processing business beyond its current geographic boundaries. This will be our first European steel processing operation and we are fortunate to be partnering with the highly regarded Magnetto Group. Worthington has a long history of successful joint venture partnerships."

The Magnetto Group is a leading European manufacturer with sales of EUR 1.5 billion. The Turin, Italy, based company is a leader in the distribution of flat rolled steel products and steel services, wheel production, automotive stampings and assembly. The company recently entered the construction industry with the design, fabrication and assembly of bodywork components for construction equipment, industrial vehicles, trucks and buses. Founded in 1948, Magnetto has more than 30 production sites in three continents and more than 7,000 employees.

Worthington Steel, a Worthington Industries company is one of America's largest independent steel processors of flat rolled steel. Operating 12 facilities across the United States.

Yilgarn secures AUD 750 million funding from 5 Chinese firms

Yilgarn Infrastructure Limited has signed an investment agreement with five major Chinese enterprises to underpin the AUD 750 million equity needed for the development of the Oakajee Port and Rail Project in Western Australia's Mid West region. The equity deal follows a commitment by China's EXIM Bank to underwrite the debt required for the project.

Dr John Saunders chairman of Yilgarn said that a crucial component of the agreement was a local content commitment by all parties to partner with Australian expertise and suppliers for the development, construction and operation of the estimated AUD 3 billion infrastructure project.

Dr Saunders added that "Yilgarn is forging a highly skilled and competent project team by combining Australian expertise and local inputs with Chinese project execution capabilities. Ensuring these commercial partnerships continue to be created and fostered into the construction and delivery phases of the port and rail will ensure the Mid West and Western Australia receives the best possible infrastructure development.”

Dr Saunders said that “This equity agreement, together with the debt finance commitment secured from China's EXIM Bank, puts Yilgarn on the best possible financial footing as we progress the Oakajee Port and Rail Project. With substantial preliminary works done, including engineering pre feasibility, key environmental investigations and specialized geo technical, rail alignment and vessel handling studies, Yilgarn is now moving onto definitive feasibility studies with a strong team well equipped to handle this extremely complex development."

Mr Bryan Oliver CEO of Midwest said “It signals the strategic interest of major Chinese companies in iron ore in WA and the growing cooperation between Chinese and Australian companies. Today's announcement also confirms China's appetite for investment opportunities in WA."

Midwest Corporation Limited and Yilgarn are parties to an Implementation Agreement to work together to progress the development of the port and rail infrastructure.

The group of five Chinese companies, with combined assets of more than USD 50 billion and revenues of more than USD 60 billion, includes some of China's biggest enterprises in the fields of port and railway construction; railway operations, iron ore trading and steel production.

Chinese coke output in July drops by 2.7%YoY

According to the China’s latest statistics, China’s coke output in July hit 28.1079 million tonnes down by 781,800 tonnes or 2.7% MoM from the 28.8897 million tonnes in June 2007 yet up by 4.064 million tonnes or 16.9%YoY from July 2006.

China’s daily output in July 2007 was registered at 906,700 tonnes down some 56,300 tonnes from the 963,000 tonnes in June 2007 but up 135,900 tons or 17.6% YOY from the 770,800 tons in July 2006.

Provinces contributing over 1 million tones are
1. Shanxi - 8.270 million tonnes
2. Hebei - 3.143 million tonnes
3. Shandong - 2.406 million tonnes
4. Henan - 2.011 million tonnes
5. Liaoning - 1.393 million tonnes
6. Inner Mongolia - 1.258 million tonnes

However, China’s coke output during January to July amounted to 184.555 million tonnes up by 20.4% YoY.

(Sourced from MySteel.net)

China ferrosilicon export details for H1 of 2007

As per the data from Chinese customs, China exported 0.845 million tonnes of ferrosilicon during January to June 2007 period.

The ferrosilicon export during January to June 2007 took place to 67 countries but Japan accounted for 29% of the volumes followed by South Korea with 14% share

In tonnes

(Sourced from Mysteel.net)

US June 2007 steel shipment down by 8.4% YoY

American Iron and Steel Institute reported that for the month of June 2007, US steel mills shipped 8.92 million net tons down by 8.4% YoY as against 9.73 million net tons shipped in June 2006 and down by 1.9% MoM as against 9.08million net tons shipped in May 2007.

YOY comparison of YTD shipments shows the following changes within major market classifications:
1. Service centers and distributors down by 11%
2. Automotive down by 2.8%
3. Construction and contractors’ products down by 3.1%
4. Oil and gas down by 9.6%

AISI’s estimate is based on reports from companies representing about 75% of the US’s raw steel capability and includes revisions for previous months and year.

EC to investigate expiry review on steel tube fittings

Platts reported that European Commission has instigated an expiry review of anti dumping measures on a variety of South Korean and Malaysian iron & steel tube and pipe fittings.

The investigation will be concluded within 15 months of the notification, in accordance with EC guidelines. In view of the apparent numbers of parties involved, it may decide to apply sampling procedures to determine the likelihood of a continuation of recurrence of dumping and injury.

Current measures cover tube and pipe fitting, excluding cast fittings, flanges and thread fittings of iron or steel excluding stainless steel with a diameter not exceeding 609.6 mm. Imports to the EC were likely to increase, owing to a production surplus already in evidence in the countries. Furthermore, the removal of injury had come only as a result of existing measures and that should they be removed, injury would likely reoccur.

The review follows a request lodged on May 23rd 2007 by the defense committee of the steel butt welding fittings industry, a body representing more than 25% of product related producers in the EC. The committee claims the expiry of measures would likely result in a recurrence of dumping and injury to industry in the EC. This is based on a comparison of the normal value versus export prices for the product when sold for export to US, which is said to be significant.

Aluminum spill in east China kills 14 and injures 59

Xinhua reported that at least 14 people died and 59 injured on Sunday night at a plant affiliated to the Weiqiao Pioneering Group Company at Zouping County in Shandong province when a ladle spilled molten aluminum with a temperature of 900 degrees Celsius at a factory in eastern China. The spill also cracked walls, smashed windows and caused the roof of the factory to blow off.

The 59 injured workers were hospitalized, but how serious their injuries were not known. It was not immediately clear exactly how the 14 died.

A similar accident happened in April 2007 at a steel plant at Liaoning province in northeast China when ladle transporting molten steel broke killing 32 workers.

Industrial accidents killed more than 127,000 people in China in 2005.

Steel orders in Germany decline due to inventory build up

German Steel Federation citing customer stockpiling reported that rolled steel deliveries and orders has declined in the April to June 2007 quarter as compared with the April to June 2006 quarter.

Incoming order has decreased by about 10% to 10.054 million tonnes in the April to June 2007 quarter and orders on hand had dropped to 10.873 million tonnes in the April to June 2007 quarter from 11.941 million tonnes in the April to June 2006. Besides, both domestic and foreign orders have declined affecting both flat steel and long products.

German Steel Federation said that crude steel output has risen by 4.5% YoY in the January to July 2007 while, in the April to June 2007 quarter, supplies of rolled steel fell slightly to 10.638 million tonnes from 10.655 million tonnes in the April to June 2006.

MIREX breaks ground on steel mill in Vietnam

VNS reported that the Viet Nam Mineral Resources and Metallurgy JSC started construction of a VND 345 billion (USD 21.6 million) steel plant in northern mountainous province of Cao Bang. Slated to be put into operation in June 2008, the plant produce 200,000 tonnes of steel.

This is the first steel ingot plant in Viet Nam to use anthracite coals instead of coking coal, which helps lower production costs and is environmentally friendly. The 7 hectare plant will be equipped with the most advanced technological equipment made in China, Japan and Europe.

According to Viet Nam Mineral Resources and Metallurgy JSC, after successful production of steel ingots, the company will further modernize the plant to produce laminated steel as well as high quality steel. It also plans to develop similar plants in other localities rich in iron ores to meet domestic demand. Most of the country’s iron ore source is located in the seven northern mountainous provinces of Lao Cai, Thai Nguyen, Tuyen Quang, Lang Son, Ha Giang, Cao Bang and Bac Kan.

Japan and Indonesia signs free trade agreement

It is reported that Japan and Indonesia have signed a trade agreement on August 20th 2007 to eliminate tariffs on more than 90% of the goods bought and sold between the two countries. Mr Shinzo Abe prime minister of Japan and Mr Susilo Bambang Yudhoyono president of Indonesia signed the comprehensive economy partnership agreement, which has been under negotiation since mid 2005.

The trade agreement is a modified free trade deal that sees Japan offer extra benefits to partners beyond simple tariff cuts. It was the 8th such accord signed by Japan and Indonesia's first. It is to go into effect in 2008 after the Jakarta government obtains parliamentary approval and establishes rules for the pact by the end of 2007.

The agreement lifts tariffs on about 96% of Japan's exports to Indonesia and on 93% of Indonesian exports to Japan mostly coal and liquefied natural gas. Under the pact, Indonesia is to scrap a 15% tariff on Japanese steel used by its automotive, electronics and heavy machinery industries.

Japan is Indonesia's biggest trading partner and its largest purchaser of natural gas. Indonesia's exports to Japan were worth USD 21.7 billion in 2006 while imports from Japan stood at USD 5.5 billion in 2006. Around 1,000 Japanese companies operate in Indonesia.

Fosun buys stakes in Hainan Mining United

It is reported that China's Fosun Group will take 60% stake in the CNY 1.5 million Hainan Mining United Company through two subsidiaries.

Fosun in a statement to the Hong Kong stock exchange said that the venture will receive CNY 900 million from Fosun, while Hainan Iron & Steel Company which owns the remaining 40% stake will contribute its share of capital in forms of land use, building and mining rights and mining and manufacturing equipment.

Fosun has pledged to transform Hainan Steel into an integrated steel maker, focusing on mining in China's Hainan Province and to reduce the environmental impact through a restructuring project. It also initiated talks to purchase part of Hainan Steel in 2005 with the aim of developing both the steel and real estate industries on the island province of Hainan.

SCHMOLZ+BICKENBACH to acquire Spanish Steeltec Especial SL

SCHMOLZ+BICKENBACH AG has signed agreed with the former owners of Especial SL of Barcelona in Spain to acquire this company. It will be integrated as from January 1st 2008.

For many years, Steeltec Especial SL has been the distribution organization of Steeltec AG, Emmenbrücke, for high grade steel products in Spain.

Shagang buys 90% stake in Stemcor Australia iron ore mine - Report

The Shanghai Business Review reported in its online version that that Jiangsu Shagang Group, a private Chinese steel maker, has purchased a 90% stake in an iron ore mine owned by Stemcor Holdings Ltd in Australia. Financial details of the transaction were not provided.

The report citing a company source said that Shagang would help fund an expansion of the pellet producing mine and plant, extending its life to 2023 from 2009.

Sao Paulo to begin Maranhao steel studies from September

BNamericas reported that Sao Paulo state university USP is due to begin studies into the potential impact of a steel mill in Brazilian Maranhao state from September 2007.

The studies are due to take 90 days and will measure the environmental and economic impact of a steel mill in Maranhao state capital Sao Luis and also in the city of Bacabeira in Brazil.

Mr Sergio Guimaraes civil construction & mining metals superintendent at Maranhao's commerce & industry ministry said that "We are still going over the budget details." He added that Sao Paulo university USP studies would provide an objective opinion free of particular interests.

It is noted that Brazilian Companhia Vale do Rio Doce and Chinese steel maker Baosteel had plans to build a steel plant in Sao Luis but Maranhao state wanted the mill at Bacabeira and both companies then ruled out Maranhao and signed a letter of intent to build the plant in Espirito Santo state.

CVRD already has minority stakes in the CSA steel mill and the Ceara steel plant and earlier in August 2007 unveiled plans to disburse USD 270 million for a minority share in a JV to acquire the Sparrows Point mill in the US.

Chinese delegation visiting Brazil, Argentina and Australia

It is reported that the Chinese delegation of steel makers, led by Mr Luo Bingsheng deputy secretary of China Iron & Steel Association has set off for Brazil to visit mining enterprises, associations and relevant government departments on August 15th 2007.

Chinese steel makers hope to take initiative in next year's iron ore benchmark talks and make early preparation by this visits while one of the top ore suppliers.

The delegation members are from 16 large scale Chinese steel makers and three private mills. After Brazil, their next destinations are Argentina and Australia.

(Sourced from MySteel.net)

TATA Steel Thailand to build mini BF

YIEH reported that with the consistent output growth of TATA Steel Thailand, a new expansion plan of adding output 500,000 by setting up a mini blast furnace is in TATA Steel Thailand’s schedule.

This type of mini blast furnace would be the first one in Thailand. The new blast furnace plan is expected to be completed around the third quarter of year 2008.

TATA Steel Thailand, established in 2002, is the largest long products producer in Thailand with shares of other four steel companies. The company’s service aims to provide full range of products for large scale projects and contractors.

Minnesota Steel's EIS is adequate

It is reported that Minnesota Steel's lengthy environmental impact statement has been approved by the Minnesota DNR.

This is a major step for the massive mining through steelmaking plant planned for Nashwauk. Now all the company needs is the seven environmental permits it applied for based on the EIS's guidelines.

It said that “Once those are issued, then construction can begin and financial close can happen. Essar Global has signed on to build the entire USD 1.6 billion project.”

The Army Corp of Engineers will also make a decision on the EIS, which is expected in the coming weeks.

Metix JV building Xstrata chromite sinter plant in SA

Smelting and technology equipment company Metix announced that it has been commissioned as part of a JV to construct the largest chromite sinter plant in South Africa. The main contractor for the project is Metuba, which is a JV between Metix Tubular and Royal Bafokeng Holdings.

The plant is being built on a lump sum turnkey basis as part of ferrochrome producer Xstrata’s Bokamoso project on its Wonderkop site. The first plant has been hot commissioned and the second will follow in the next two months.

Mr Andrew van Niekerk engineering director of Metix told Engineering News that the plant is based on Outotec technology and consists of two integrated 600,000 tonnes per year plants.

Metix’s main activities are in the ferroalloy industry covering agglomeration, palletizing, sintering and smelter plants. Metix has experience in the construction of over 36 new furnaces, 15 furnace rebuilds and 6 steel belt sinter plants. In addition to ferrochrome, the company also has experience in processes such as ferrosilicon and ferromanganese.”

Australian resource industry divided over port takeover plans

It is reported that the Australia resources industry has welcomed further funding of the Australian ports by the Federal Government but is divided over whether a Commonwealth takeover would be beneficial.

Mr John Howard prime minister of Australia had recently indicated that the Commonwealth could step in to ensure the Australian ports run more efficiently if the states do not implement urgently needed reforms. He said that the government has explained to the states that the better management of the ports is essential to ensure there are fewer blockages and guarantee Australian export performance.

The Queensland Resources Council said that the Federal Government should commit more funding if it is unhappy with the performance of the state's coal ports. Mr Michael Roach spokesman for Queensland Resources Council said that there is billions of dollars of expansion projects due to start or be finished which could be achieved sooner with federal funding.

He added that it is unlikely the Federal Government would be able to takeover some of the state's coal ports. He said ‘We have coal export ports owned by BHP, is the Federal Government going to take over BHP's coal export port? I think not. We have coal export ports operated by Babcock and Brown is the Federal Government going to take over Babcock and Brown's 99-year lease? I suspect not."

Mr Vincent Tremaine CEO of Flinders Ports says a federal takeover could speed up reform. He added that if you remove the worst of the regulatory regimes then you allow market forces to come into play, and market forces will get the job done a lot faster than regulatory regimes will. He also added that federal intervention is not needed in South Australia. We've got a fairly light-handed regulatory regime, so it's not really necessary for substantial changes here. Mr Vincent said "However to the extent that the Federal Government is looking at reducing the regulatory regime and allowing market forces to operate then I think that would be a good thing."

Nigeria to launch new policy on mining and steel sectors soon

It is reported that the Nigerian Federal Government would soon launch a new policy that would cover every aspects of mining and steel development in Nigeria. The policy would re organize mining operations for optimal benefits to the country and all stakeholders in the sector.

Mr Alhaji Ahmed Mohammed Gusau Nigerian minister of state mines and steel development disclosed this during the visit of Artisinal and Small Scale Miners Association. He noted that the present administration was committee to the encouragement of Nigerians to invest in the mining sector as a source of income and employment.

He said the Federal Government is poised to give the necessary leadership to monitor and ensure that a conducive atmosphere was created for investors to explore and exploit the minerals resources in the country.

On the Artisinal and Small Scale Miners Association who came to seek government support and cooperation against importation of barite by multinational companies, the minister promised to look into the issue carefully and have discussions with all stakeholders.