Others

Jinchuan Group sees lukewarm nickel demand in China in 2010

Atlas Iron and Aurox Resources agree to merge

Stimulus plans - Russia starts federal car scrapping program

Talks break down between Vale Inco and USW union

Indian steel price index up by 29 points

Khouzestan Oxin Steel to reach plate capacity in 3 years

Chinese steel price index reflects pick up in flat products

Chambishi copper processing mine resume operations after 1 month

Brazil to limit mine rights for 35 years

Man Industries bags major pipe order from Kuwait

Severstal announce financial results for 2009

Zinc giant Nyrstar sees strong growth in mines

Chinese coal output seen to hit 3 billion tonnes in 2010 - NDRC

Rio Tinto CEO to attend conference in China this month

Cashmere Iron announces ore find in WA

Newcastle coal exports up but ship queue shortens

Mr Kirsch joins Cliffs Natural Resources board of directors

NMDC to diversify into new businesses

Indian coking coal demand to go up by13pct in 2010-11

Brockman on target with development of new iron ore port

North American galvanizing industry remains challenged

- 11 Mar 2010

Reuters quoted Mr Philip Rahrig executive director of American Galvanizers Association as saying that with a number of US construction projects still in limbo from the economic downturn, the North American galvanizing industry's recovery will remain challenged.

Mr Rahrig said that the galvanizing industry's lag time behind the rest of the economy will push any recovery back until at least 2011. He added that "We lag the economy by about 12 months because of the execution of projects, primarily from the construction industry. Everybody is still seeing a lot of projects on the board, but they are all on hold."

Mr Rahrig said that even by optimistic estimates, the industry is still six to nine months from seeing any large uptick in projects. He added that the lack of infrastructure investment from the USD 787 billion stimulus package was another disappointment for the galvanizing industry.

Mr Rahrig singled out the alternative energy, power, and original equipment manufacturers industries as sectors that may provide a brighter outlook for galvanizing. He said that "Everybody is excited about it because it is kind of an emerging market. All of the structural supports for solar farms are galvanized, and there are a lot of components on each one of the wind towers that are galvanized. It's a bright spot, but it will be small."

(Sourced from www.reuters.com)

Gerdau Aza resumes operations and freezes rebar prices for H1

- 11 Mar 2010

Business News Americas reported that Chilean steelmaker Gerdau Aza, the local subsidiary of Brazil's Gerdau, has resumed operations at its hot rolling plant in the metropolitan region's Renca district

A company spokesperson told BNamericas that “However, the restart of operations at the Colina complex including a steel mill and hot rolling plant- remains uncertain as damage is still being evaluated.”

The two plants were affected by the 8.8 magnitude earthquake that hit central and southern Chile on February 27th 2010.

In addition, Gerdau Aza will freeze steel rebar prices during H1 as a way to help infrastructure and housing reconstruction, the company said in a press release, adding that prices from February 27 will remain the same until June 30.

The company also said that if international prices and costs during the second half stay the same as those in H1, rebar prices will not change for the entire year.

Gerdau Aza has installed capacity to produce 520,000 tonnes per year of steel products, including rebar, profiles and wire rods. More than 90% of the company's output is sold on the local market.

(Sourced from BNAmericas)

CSN expects domestic sales surging by 30 pct in 2010

- 11 Mar 2010

It is reported that Mr Luis Fernando Martinez sales director of Brazil's biggest diversified steelmaking group Companhia Siderurgica Nacional expects domestic sales to rise 30% to 5 million tonnes buoyed by a rebound in Latin America's largest economy.

(Sourced from Reuters and Bloomberg)

JSE investigates ArcelorMittal SA iron ore deal

- 11 Mar 2010

ArcelorMittal's South Africa unit said that it was answering questions from the Johannesburg Stock Exchange about why it had delayed making public a change in its iron ore supply deal.

ArcelorMittal SA informed the market on February 26th 2010 of a change in its iron ore supply deal, three weeks after its main supplier told it that it would stop selling the metal at a discount.

Ms Marion Green Thompson spokeswoman of ArcelorMittal SA said that the steelmaker had given an explanation for the delay after which the JSE had sent another request for further information.

She added that "We have received another letter from the JSE, following up with further questions seeking an explanation as to why there was a delay in informing the market."

Mr Russell Loubser CEO of JSE was quoted by South African media as saying that the bourse was looking into the whole episode to verify why it took three weeks for the steel maker to make public the changes to the iron ore deal.

ArcelorMittal SA made an announcement on February 26th 2010 that Kumba Iron Ore had said it would stop selling iron ore to the steelmaker at a discount and would begin charging market prices from March 1st 2010. It did not specify when it received notice from Kumba.

Kumba also made a statement on the same day outlining the change and saying it had told ArcelorMittal South Africa about its decision on February 5th 2010.

(Sourced from www.reuters.com)

California Steel announces Q4 and 2009 results

- 11 Mar 2010

California Steel Industries Inc has reported fourth quarter and full year results for the period ended December 31st 2009. The net loss for fourth quarter 2009 is USD 2.3 million as compared with a net loss of USD 76.1 million in fourth quarter of 2008. For the full year 2009, the net loss is USD 13.1 million as compare to net income for fiscal year 2008 of USD 13.3 million.

Net sales for the quarter are USD 153.6 million as compared with fourth quarter 2008's net sales of USD 269.5 million. For the year, net sales are USD 551.8 million, lower than fiscal year 2008's net sales of USD 1.51 billion.

Shipments in fourth quarter 2009 are 222,242 tonnes, up by 15% YoY. For the year, CSI shipped 800,375 tonnes, down by 45% YoY. The Company recorded USD 2.7 million in fourth quarter 2009 and USD 44.5 million in fiscal 2009 for writing down inventory to market value as CSI's inventory values are carried at the lower of cost or market.

Mr Vicente Wright president & CEO of California Steel Industries said that "Considering the economic crisis of the past year, its effect on steel market conditions, and, in particular, its severe impact on the West Coast, we look upon these results as further evidence of the strength of our company and our business model. The measures we took over the course of the year to further our cost control efforts have positioned CSI as ready to meet improving market conditions as they occur. Our employees do an outstanding job in supporting our Company's goals, and I commend them for their response at these difficult times."

BDI slides down suddenly by 49 points on March 9

- 11 Mar 2010

It is reported that on March 9th 2010, Baltic Dry Index reached 3210 points, down by 49 point as compared to March 8th 2010.

Capsize

All except INDEX in USD
Change is with respect to numbers on March 8th 2010

Panamax

All except INDEX in USD
Change is with respect to numbers on March 8th 2010

Supramax

All except INDEX in USD
Change is with respect to numbers on March 8th 2010

Spot 4 TC Average = Average Value of the Four Main Shipping Routes
BDI = Weighted Composite Index of BCI/BPI/BHMI

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(Sourced from www.steelprices-india.com)

OSK Research sees steel prices increasing by up to 15pct in Malaysia

- 11 Mar 2010

OSK Research said that steel prices are expected to increase between 10% and 15% in the next few months on the resumption of private and public construction activities after the Chinese New Year celebrations.

It said that average selling prices of steel products escalated since December 2009, but the increase was mainly driven by the cost push element. It added that "We continue to think that with on going projects perhaps helping to sustain 70% of regular annual long steel consumption, the balance may be compensated if most public projects are executed in a timely manner."

OSK said that local steel mills have been exporting more than one million tonnes of steel products, annually, in the last two years. Malaysia's exports escalated after China imposed a 25% export tax on billets, creating a vacuum of 5 million tonnes of billets in the South East Asia market. China previously supplied 75% of the region's requirements.

It added that "Improvements in the economies of the Middle East, Australia, Pakistan and Bangladesh are also expected to be a boon to Malaysia's billet exports."

(Sourced from www.bernama.com)

Danieli Corus wins order for study on CO2 emissions from EU

- 11 Mar 2010

A consortium consisting of Danieli Corus and TNO has received an order for a study on the energy efficiency and CO2 emissions prospective scenarios for the Iron and Steel Industry in the EU from the European Commission's Joint Research Center.

The study includes techno economical scenarios for the EU 27 steel companies and also includes an assessment of innovative technologies and EAF (scrap) steelmaking. A similar study for the EU 27 electricity generating large combustion plants has been performed in 2008 by TNO and confirmed that application of Best Available Technologies to date would result in significant emission reductions if installed at all plants.

The Iron and Steel Industry study will include forecasts to 2020 and also include assessment's of BAT.

Association of Steel Distributors names Mr Barnett as president

- 11 Mar 2010

The Association of Steel Distributors announced that Mr James Barnett, a 40 year industry veteran and president of Grand Steel Products Inc in Wixom MI has taken the helm of the association as its 2010 president.

Mr Barnett replaces 2008-2009 president Mr Tom Smith of B & D Steel, located in Holland, PA, who will now assume the role of immediate past president.

Mr Barnett will provide strategic direction for the organization and is committed to taking on the ASD leadership role. Barnett has been an active member of ASD since 1995 and a member of the ASD Board of Directors since 2000.

Mr Barnett said “I am honored to be president of an organization I have great respect for the organization and look forward to taking ASD into its 67th year of serving the steel distribution community. I am committed to filling the shoes of our past presidents and I know we have a bright future.”

Joining Barnett on the ASD Executive Committee are
1. Robert Pelles, president of Premium Metals Inc Cleveland, OH, will serve as the executive vice president
2, Lisa Goldenberg, chief operating officer of Delaware Steel Company of Pennsylvania, Fort Washington, PA, will serve as treasurer
3. Ron Chase, Action Steel, Edison NJ, will remain in his role of eastern region vice president
4 Brian Robbins, CEO of Midwest Materials of Perry, OH, will become the new central region vice president

In addition, Mr Andy Gross of Alliance Steel, LLC located in Bedford Park, IL, will also join the ASD Board of Directors.

ASD members include service centers, distributors, steel mills, transportation companies and service related companies who are all viable partners to the steel distribution marketplace.

Toyota Motor to cut steel price for suppliers by 9pct from April

- 11 Mar 2010

Toyota Motor Corporation has told its suppliers that it will lower the price of the steel products it sells them by as much as 9% from April 1st 2010

The move comes before Toyota completes its own price negotiations with top steelmakers such as Nippon Steel Corporation for the business year starting in April 2010, marking an unprecedented step that the sources said could be aimed at limiting expected price hikes by steelmakers.

However, Toyota also told suppliers that depending on its negotiations with steelmakers, it may readjust its selling prices. Toyota, which buys steel on behalf of its suppliers to get a better deal and sets the benchmark for steel price negotiations at other Japanese automakers, normally tells its suppliers of its selling prices after agreeing prices with steelmakers.

Toyota said that it will cut prices of hot rolled steel by about 9% to JPY 69,500 a tonne from JPY 76,500. In turn, Toyota will pay an equal JPY 7 per kilogram less for the components it buys back from suppliers.

(Sourced from www.reuters.com)

Nigeria approves NGN 650 million to restart Ajaokuta Steel and NIOMC

- 11 Mar 2010

This Day Online reported that Nigerian Federal Government has approved NGN 650 million for the re opening of the Ajaokuta Steel Company Limited and the National Iron Ore Mining Company.

However, the government said that it had so far spent a total of USD 6 billion on the Ajaokuta plant since its inception in 1979. It said the report of an audit ordered on the companies' assets would be ready in the next four to six weeks.

Ms Diezani Alison Madueke minister of mining and steel development said that the fund would be used to resuscitate and re operationalize some of the completed units of the two entities.

The units to be re started comprise the section of the thermal power plant, the light section rolling mill, the wire rod mill and the engineering workshops.

Ms Alison Madueke said that the Bergeaud plant as well as minimal mining operations and processing are also to be re operationalize under the arrangement. She added that "After a series of consultations and communication with the Presidency on the ministry's proposal on the way forward for the two entities, I am happy to report to you today that the Acting President has graciously approved the ministry’s request to re operationalize both entities, prior to privatization.

She said that "It is the ministry’s plan, therefore, to ensure that both entities commence operations, not later than the end of second quarter of this year. For the entities to remain afloat, we need approximately NGN 650 million at this time. This is to get it moving and to ensure that it is running smoothly. The amount covers only operational costs, excluding of course the cost of salaries of workers which have already been built into the 2010 budget appropriation."

She said that the rehabilitation of the entire departments of the steel mill would take much greater investment to achieve. She added that "It will need the involvement of a joint venture partner to be able to move to that level. When we have seen how the plants are effectively run by the end of 2010, then we continue planning for 2011 and other subsequent years."

(Sourced from www.thisdayonline.com)

ACEI calls for a new industrial partnership in EU

- 11 Mar 2010

The Alliance for a Competitive European Industry has called for a new industrial partnership between the EU and its major industries.

In its manifesto, entitled 'Shifting Gears for a New Industrial Policy', the ACEI stresses what needs to be done so that manufacturing industry can remain one of the engines of the economy.

Europe needs a vibrant manufacturing industry to spark the economic recovery, innovation and growth required to meet the societal and environmental challenges which lie ahead. Manufacturing provides a fifth of EU GDP and provides three quarters of EU exports. Over 80% of the EU private sector research and development expenditures are provided by industry. Manufacturing firms are also key clients of many services activities. Many of the services jobs in the EU would be lost without a strong industrial base.
The Manifesto presented today gives an overview of the priority actions to be taken to achieve a competitive and innovative industrial base. To achieve this, the ACEI has identified 6 priority areas:

1. Partnership: EU institutions and the private sector can and must work more closely to secure the future of Europe’s industrial base

2. Growth: we need to establish the right mix of fiscal, monetary and financial policies to re invigorate economic dynamism, while ensuring that European industry comes out of the economic crisis more competitive and innovative than before

3. Balance: Europe must take a fully integrated approach to industrial policy by carefully balancing essential climate, energy and competitiveness factors

4. Innovation: growth, industrial leadership and sustainability require one key ingredient: innovation. The EU must therefore establish and all encompassing R&D and innovation strategy for Europe

5. Markets: the EU must ensure access to world markets and to raw materials by aiming to open export markets while maintaining effective trade defense instruments

6. Skills: manufacturing industry must foster and attract new generations of highly skilled and creative workers

Ms Teresa Presas chair of the Alliance and also MD of CEPI said that "Europe's place in the world of 2025 will be radically different from that of today. The EU institutions share the European industry goal of remaining a world leader. They must work together to ensure that growth and jobs are created in Europe."

Mr Philippe de Buck co chair of the Alliance and BUSINESSEUROPE Director General said that “The EU badly needs an integrated industrial policy. We are calling on Commissioner Tajani, the Competitiveness Council and the European Parliament to tackle EU industrial policy forcefully and thoroughly. This is crucial. It will determine where our manufacturing companies invest in the jobs of tomorrow."

Rays of recovery - MHIA sees growth in material handling equipment orders

- 11 Mar 2010

According to the latest Material Handling Equipment Manufacturing forecast from the Material Handling Industry of America, material handling equipment orders contracted 37.4% in 2009 and is forecasted to grow between 6% and 8.5% in 2010.

Mr Hal Vandiver EVP of business development at MHIA said that "Industrial production activity is increasing even though factory operating rates remain very low by historical comparison. MHIA believes that demand created as the economy shifts from recession into recovery mode is the principal impetus for improvement over the next few quarters in manufacturing, warehousing and distribution."

In addition, material handling equipment shipments contracted 34.4% in 2009 and is forecasted to grow by 1% to 2% in 2010. Domestic demand contracted 34.7% in 2009 and will grow by 1% to 2% in 2010, according to the MHEM forecast. Exports and imports will improve in 2010 at about the same rate.

The MHEM forecast of material handling equipment manufacturing is released each quarter by MHIA and looks 12 to 18 months forward to anticipate changes in the material handling and logistics marketplace.

(Sourced from www.hoistmagazine.com)

CSN plans IPO for Casa de Pedra iron ore mine

- 11 Mar 2010

Reuters quoted Mr Benjamin Steinbruch chairman of CSN as saying that it plans to hire a financial adviser by April 2nd 2010 to help it with the initial public offering of its massive Casa de Pedra iron ore mine.

(Sourced from www.reuters.com)

Macroeconomic indicators - German industrial output rose less than expected

- 11 Mar 2010

The Economy Ministry said that German industrial output rose less than expected in January 2010 as a harsh winter bit into construction activity, but a surge in orders suggests a rebound is just around the corner.

It added that output rose by 0.6% MoM in seasonally adjusted terms, falling short of a Reuters consensus forecast for a 1% rise. December's reading was revised up to negative 1% from negative 2.6%. January's data was marked by a 14.3% drop in construction output on the month. Manufacturing production rose 0.9%.

Mr Carsten Brzeski, economist at ING Financial Markets, said that "The sharp drop in construction activity stresses that, in the very short term, the bad winter weather is a clear impediment to growth. However, under the solid blanket of snow, the fundamentals are promising, scotching any double dip fantasies quickly."

(Sourced from www.reuters.com)

AISI applauds Congress for preventing damaging action by EPA

- 11 Mar 2010

The American Iron & Steel Institute has applauded efforts in both the US Senate and the US House of Representatives to prevent economically damaging action by the Environmental Protection Agency to regulate greenhouse gases from stationary sources, which would impact most American manufacturing facilities, including steel mills.

Mr Thomas J Gibson president & CEO of AISI said "We are very encouraged by signs of a growing awareness that Congress must act now to stop EPA from regulating greenhouse gases from stationary sources under the Clean Air Act. Such legislative action is essential to preserving jobs and promoting economic growth while Congress considers comprehensive legislation to address climate change."

Mr Gibson said that several different approaches are under consideration by Members of the House and Senate. He added that "The legislation introduced today by Senator Rockefeller and several Members of the House is an important step forward and AISI appreciates their leadership on this issue. We also support the actions of Senator Ms Lisa Murkowski and other Members of the Senate and the House from both parties who have introduced proposals to stop EPA regulation through the Congressional Review Act. This approach would likewise provide a vehicle for preventing EPA’s ill considered regulatory approach. We urge Members of both parties now to work together to find a common approach that can be enacted into law as soon as possible to stop EPA from continuing on its present course."

He also said that "The critical issue that we encourage all Members of the House and the Senate to focus on is the need for Congressional action to prevent EPA regulation of stationary sources of greenhouse gases and allow Congress to address this very complex issue through the legislative process. Only a comprehensive legislative approach to climate change can address the important international competitiveness and carbon leakage issues that are critical to energy intensive, trade exposed industries like steel. And we particularly cannot afford to lose more valuable manufacturing jobs at a time of fragile economic recovery. But legislative action to stop EPA regulation from moving forward is needed now, before additional regulatory measures are issued. Congress must retake control of this important issue and must do it now."

(Sourced from www.steel.org)

Slowdown signs - Konecranes 2009 order intake down by 35pct YoY

- 11 Mar 2010

Describing 2009 as at least as challenging as 2008, Mr Pekka Lundmark president & CEO of Konecranes said that it order intake in 2009 down by 34.7% and sales down 20.5% to EUR 1,671.3 million.

The company plans to cut costs this year by EUR 100 million from 2008 levels. At the same time, it continues to invest, with ten new businesses joining the fold in 2009. In 2009, the company cut more than 1,600 jobs and closed three crane manufacturing sites, in Germany, the US and the UK. At the same time, it made ten acquisitions, including businesses in Austria, China and South Africa. The new acquisitions included 1,100 personnel. Over the year, Konecranes total headcount fell by 122 to 9,782.

The company announced a new restructuring program. As of 2010, the company now has two business units, equipment and service. The results for 2009 reflect the old structure, with three units for service, standard lifting and heavy lifting.

Net sales in the service business area were 11.5% lower, at EUR 667.2 million. Operating profit was EUR 73.5 million excluding restructuring costs or 11% of net sales. Orders received were down 24.3% to EUR 498.4 million. Order book stood at EUR75.9m at the end of the year. At the end of 2009, Konecranes was contracted to maintain 362,966 units of equipment, up from 359,811 at the end of 2008.

Net sales in the standard lifting business area were 21.9% lower, at EUR 652.2 million. Operating profit was EUR 65.3 million excluding restructuring costs or 10% of net sales. Order intake was down 39.8% to EUR 517 million, with the year end order book worth EUR 192.1 million, from EUR 327.9 million at the end of 2008.

Net sales in the heavy lifting business area were down 27.3%, at EUR 479.1 million. Operating profit was EUR 36.7 million excluding restructuring costs or 7.7% of net sales. The company reported an increase in orders in the fourth quarter, up 12.9% from the same period in 2008, and up 42.6% from the third quarter 2009. However, the company acknowledged these figures were boosted by a limited number of large single orders. Over the year, heavy lifting orders were down 38% to EUR 425.1 million, from EUR 686 million in 2008. At the end of the year, order book stood at EUR 353.8 million, down 15.8% from EUR 420.2 million.

Overall, the group's order book stood at EUR 607 million at year end, from EUR 836.3 million at the end of 2008, a 24.7% fall. The value of orders outstanding fell on a quarter by quarter basis: at the end of the third quarter it had stood at EUR 638.4 million. Consolidated operating profit in full year 2009 was EUR 97.9 million, including restructuring costs of EUR 20.9 million. The group's consolidated operating margin declined to 5.9%, almost exactly half last year's margin of 11.8%.

(Sourced from www.hoistmagazine.com)

Rays of recovery - UK car sales in February up by 27pct YoY

- 11 Mar 2010

According to the Society of Motor Manufacturers and Traders, UK car sales in February were up by 26.4% YoY. There were 68,686 new cars registered in February 2010 and private buyers led the growth in sales.

Mr Paul Everitt CEO of SMMT said that "Scrappage has generated eight consecutive months of growth."

Demand for smaller cars is still rising. The most popular this year are the Ford Fiesta and the Ford Focus. Toyota's sales in the UK in February were up 15% on last year to 3,439 vehicles, despite the problems caused by the carmaker's global recall of more than eight million cars. However, its share of new car sales dropped from 5.5% to 5%.

Mr David Raistrick, automotive partner at Deloitte, said that "Compared with last year, the industry is off to a strong start in 2010. However scrappage has only boosted the private buyers' market and we now need to see an improvement in the fleet market in order for growth to be sustained."

The UK's scrappage scheme is due to finish this month, but its impact could continue for some while. New cars ordered before the scheme ends might not be delivered and therefore registered until June or even July 2010.

The scheme, which pays motorists GBP 2,000 to trade in an old car for a new one, accounted for almost one in five car sales in February. Sales of new cars in March are also likely to be boosted as new registration plates come out this month.

The SMMT said that it expected to see some market decline in the second half of 2010 and predicted an overall decline in 2010 of 10%. It added that "With economic recovery still fragile and uncertainty over the impacts of the Budget in March and a general election in spring, the outlook is subdued."

Jinchuan Group sees lukewarm nickel demand in China in 2010

- 11 Mar 2010

Reuters reported that China's Jinchuan Group expects lukewarm demand growth for nickel in China in 2010, with prices of the stainless steel ingredient falling back to average USD 18,000 a tonne in 2010.

Mr Yang Zhiqiang chairman of Jinchuan Group said that "I don't think nickel demand is improving a lot. The stainless steel sector is recovering, but is not back to the level before the financial crisis. We forecast this year's price is about USD 18,000 a tonne."

Mr Yang said that the group aims at producing 130,000 tonnes of nickel and about 6,000 tonnes of cobalt in 2010, unchanged from last year. The group did not have plans to expand production capacity at the moment.

He said that Jinchuan has started trading cobalt futures on the London Metal Exchange, which were launched last month, but the company is only trading very small volumes. He added that "Cobalt futures should have a bright future, as cobalt has attracted attention from more and more people, but it will also provide another opportunity to speculators."

He added that "We are not working on an initial public offering of the group, but are considering listing a unit related to one product. We are trying to meet the basic requirements this year. If possible, we are also looking at lead and zinc resources. In terms of location, so long as there are reliable resources, feasible technology, controllable risk and good profit prospects, we are interested. We would like to be the leading operator or controlling shareholder. Otherwise we would only invest in a pact led by giant mining firms such as BHP Billiton."

(Sourced from Reuters)

Atlas Iron and Aurox Resources agree to merge

- 11 Mar 2010

Atlas Iron Limited and Aurox Resources Limited have executed a Scheme Implementation Agreement to effect a merger of the two companies.

Aurox shareholders will receive one Atlas share for every three Aurox shares. The Aurox board unanimously recommends Aurox security holders vote in favor of the merger. This agreement values Aurox at AUD 143 million, AUD 90 million dollar premium to market and Atlas at last trade was valued at AUD 990 million.

Atlas shareholders will benefit from an additional 10 million tonnes per annum to 12 million tonnes per annum in long term Port Hedland port capacity which has been secured by Aurox and from 100% ownership of the fully permitted 456 million tonnes Balla Balla magnetite project.

All shareholders will ultimately benefit from up to 33 million tonnes per annum
1. O allocated port capacity, 187 million tonnes of DSO resources
2. Project execution and mine development expertise, exploration targets of 430 million tonnes to 750 million tonnes at 57% to 60% Fe
3. Two outstanding Pilbara magnetite projects and a highly prospective 15,000 square kilometers Pilbara landholding.

Atlas has agreed to extend an unsecured, interest-bearing loan of up AUD 7.7million to Aurox in order to enable Aurox to redeem the outstanding convertible notes which are due to mature on 30 June 2010. The loan will be repayable on the earlier of 4 months from the date of draw down and 20 business days after termination of the SIA.

Mr David Flanagan MD of Atlas Iron said “Whether you are in Hunter Valley coal or Pilbara iron ore it is all about resource quality, infrastructure access and economies of scale. This merger creates one company with an outstanding rapidly growing production profile supported by port capacity in one of the world’s greatest bulk export ports.”

Aurox is an iron ore explorer whose main focus is development of the Balla Balla Project located in the West Pilbara, approximately 100 kilometers west of Port Hedland. The Balla Balla Project is a large homogenous titanomagnetite ore body with a mineral resource of 456 million tonnes and current ore reserve of 238 million tonnes. Significantly, Aurox has secured an allocation at Utah Point of 6mtpa from March 2010, increasing to 10 million tonnes per annum from 2015. There is capacity to increase Aurox¡¦s allocation to 12 million tonnes per annum if the use of the Aurox reclaimer results in an increased throughput for the Utah Point berth by more than 2 million tonnes per annum.

Atlas is currently mining and exporting from its 100%-owned Pardoo Iron Ore Project, located 75 kilometres by road from Port Hedland in the Pilbara region of Western Australia. In addition, Atlas is progressing development at its Wodgina and Abydos DSO Projects. When combined with additional export tonnages from its Wodgina and Abydos DSO Projects, Atlas is targeting DSO exports at an annualised rate of 6 million tonnes in 2010, growing to 12 million tonnes by 2012.

Stimulus plans - Russia starts federal car scrapping program

- 11 Mar 2010

It is reported that Russia officially started its federal car recycling program, in accordance with which owners of old cars will be given a special incentive payment in the amount of RUB 50,000 for scrapping their old vehicles.

The compensation will be allowed as a discount when buying a new vehicle from an Industry and Trade Ministry-compiled list of over 60 Russian and foreign car brands produced in Russia. Cars accepted for the recycling program will include domestic and imported vehicles older than 10 years, with a total weight less than 3.5 tonnes and registered in the name of the last owner for not less than for one year.

73 scrap processing companies from 49 Russian regions are involved in the government's car recycling program, which will last until November 1st 2010. The government has allocated about RUB 10 billion for the scheme and projects that some 200,000 new cars will be sold by more than 1,500 authorized dealers in line with the program. The main benefit of the scheme is expected to be a stimulus in demand for cheaper Russian cars such as the Lada produced by Russia's AvtoVAZ.

It is anticipated that the program will also support significant growth and development in Russian automotive assembly operations. Currently, there are about 15 industrial production lines for foreign car assembly in Russia, located in the St. Petersburg, Kaliningrad, Moscow and Kaluga regions. Among them are global firms such as Peugeot-Citroen, Hyundai and Mitsubishi; other leading producers such as Toyota, Ford, Volkswagen, Renault, Nissan, GM, Opel and BMW also have an increasing presence. It is expected that the new Russian car scrapping program will benefit many of these foreign investors.

Mr Viktor Khristenko Russian Industry and Trade Minister had said earlier that the weak point of the plan, which could theoretically affect Russia's estimated 18 million 10 year or older cars is the lack of a developed car scrapping infrastructure, with a mere 153 disposal stations having so far been licensed. It is expected that the new automotive recycling program will significantly bolster the development of scrap processing capacities in Russia.

Carmakers and dealers working in Russia have said that the scrapping premium is the most long-awaited measure providing support for the crisis-hit Russian car market that halved in 2009.

(Sourced from SteelOrbis)
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Talks break down between Vale Inco and USW union

- 11 Mar 2010

Reuters reported that contract talks between Vale's Vale Inco unit and the United Steelworkers union representing staff at its Sudbury and Port Colborne locations in Ontario have broken down.

It may be noted that employees at both locations have been on strike since July 13th 2009. Vale had put forward a new 5 year offer to settle the strike which was rejected by the USW.

Vale said no further talks are scheduled.

The union, representing production and maintenance employees at the locations, said that it has scheduled membership meetings for members to vote on Vale's offer of settlement, which it described as falling far short of the union membership's expectations.

(Sourced from Reuters)

Indian steel price index up by 29 points

- 11 Mar 2010

The Indian Long Product Price Index ILPPI went up by 15 points whereas Indian Flat Product Price Index IFPPI also surge by 45 points. The overall Indian Steel Price Index INDSPI rise by 29 points

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IFPPI - Flat Product Price Index
INDSPI - Indian Steel Price Index

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PI - Product Index

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PI - Product Index

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Khouzestan Oxin Steel to reach plate capacity in 3 years

- 11 Mar 2010

Steel Orbis cited Mr Fathollah Tayebi MD of Iranian steelmaker as saying that Khouzestan Oxin Steel will reach its nominal capacity in less than 3 years.

Mr Tayebi said that they estimated plate production at the mill in the coming Iranian year at 150,000 tonnes at 450,000 tonnes in the following Iranian year and at 1 million tonnes in the year after that.

Khouzestan Oxin Steel is the only rolling mill not only in Iran but also in the Middle East capable of rolling plates of up to 4,500 mm in width. The mill, which is located close to the southwestern Iranian city of Ahwaz was put into operation in May 2009.

(Sourced from Steel Orbis)

Chinese steel price index reflects pick up in flat products

- 11 Mar 2010

The Chinese Long Product Price Index CLPPI went up by 7 points whereas the Chinese Flat Products Index CFPPI up by 31 points. The overall price index CHISPI increased by 21 points.

CLPPI - Chinese Long Product Price Index
CFPPI - Chinese Flat Product Price Index
CHISPI - Chinese Steel Price Index

Long Products

PI- Product Index

Flat Products

PI- Product Index

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http://steelprices-china.com/spi_services/spi.html

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(Sourced from www. steelprices-china.com)

Chambishi copper processing mine resume operations after 1 month

- 11 Mar 2010

Chambishi cobalt and copper processing mine in Zambia may resume operations after one month following a fire that swept through a processing plant on March 4, raising fears that some workers might be laid off.

Mr Oswell Munyenyembe general secretary of Mine Workers Union of Zambia said that the Solvent Extraction plant at Chambishi Metals Plc was gutted by fire in the afternoon of March 4. The cause of the fire has not been established although investigations have been instituted to establish the extent of the damage. He said that “From what I have been told, it’s like it will take one month before operations resume. We don’t know how the fire started and no injuries were recorded.”

Authorities from Kitwe and Kalulushi municipalities said the entire extraction plant at Chambishi metals was gutted by fire and it took more than one hour to quench it although there were no human casualties.

Kitwe Town Clerk Mr Ali Simwinga said that the fire brigade belonging to the local municipality was called in and found the extraction plant engulfed in flames. He said that it took almost an hour to quench the fire and there were no human casualties. Five fire tenders had been mobilized from neighbouring towns as well as the mine to assist put off the fire.

Kalulushi Town Clerk Mr Maxwell Kabanda said that he was aware of the incident at Chambishi Metals but could not give details as he had not been advised fully on the matter.

Mr Rayford Mbulu president of Mine Workers Union of Zambia allayed fears of retrenchments at the mine of its members following the fire noting that the matter was operational.

Chambishi Metals Plc employs more than 350 workers and was last year in December forced to suspend operations after cobalt and copper metal prices on the international market slumped, resulting in laying of more than 300 workers. There was no immediate comment from company chief executive Derek Webbstock on the matter as his phone could not be reached.

Recent media reports indicated that Chambishi Metals Plc had been sold to ENRC of Kazakh and was due to resume cobalt and copper production this month. Zambia Consolidated Copper Mine Investment Holdings, an agency of government, owns 10% shares in Chambishi mine. Enya Holdings BV has the majority shareholding in Chambishi Metals plc, which owns the Nkana Slag damps, Chambishi cobalt and acid plants on the Copperbelt Province of Zambia.

(Filed by Mr Kapembwa Sinkamba SteelGuru Correspondent Zambia)

Brazil to limit mine rights for 35 years

- 11 Mar 2010

Bloomberg reported that Brazil may limit companies to explore mines for 35 years as it seeks to increase domestic output of minerals and fertilizers, such as iron ore and potash.

According to the official companies may be allowed to renew the mine licenses for an additional 35 years under some circumstances, the person said, declining to be identified because the proposed changes have not yet been made public. Under current legislation, mining rights in Brazil never expire, allowing companies such as Vale SA to hold deposits without exploring them.

Mr Luiz Inacio Lula da Silva Brazilian President is seeking to make the country self-sufficient in fertilizers within 10 years and increase domestic output of metals products such as pig iron and steel rods, the official said. The changes follow Lula efforts to boost state control over offshore oil reserves and Petroleo Brasileiro SA after the company’s discovery of the Tupi field the biggest oil find in the Americas since 1976.

According to the official the new code, designed by the Energy Ministry, includes the creation of a regulator to oversee mining rules. Lula will receive the new rules this month for approval before sending to Congress.

(Sourced from Bloomberg)

Man Industries bags major pipe order from Kuwait

- 11 Mar 2010

MAN Industries (India) Limited announced securing a prestigious order worth INR 950 crore from Kuwait for supply of 170,000 tonnes of large diameter meter pipes in both LSAW as well as HSAW segments.

The latest international/ domestic order has been bagged by the company in the face of stiff international bidding. The order has to be executed in the current financial year.

Mr JC Mansukhani vice CMD of MAN Industries (India) Ltd said that "Winning such a huge order is a great matter of prestige for the company. It is a reinforcement of the promising prospects this year of the infrastructure sector. We are confident that the company would be able to execute the order on schedule.”

The company is in the bidding stage for many projects, both in the International and domestic market for supplying pipes worth USD one billion.

With the latest order of INR 950 crore, MAN Industries (India) Ltd's total order book stands at about INR 2000 crores as on date. With the additional 3rd HSAW production line commissioned at Anjar in Gujarat, the company’s manufacturing capacity today stands at one million tons, divided equally between HSAW and LSAW. This is the first ever mill in India which can produce pipes up to 30 mm thickness in X-70 grade steel.

Severstal announce financial results for 2009

- 11 Mar 2010

OAO Severstal one of the world leading integrated steel and mining companies with key assets in Russia, the US and Europe report results for the three months and 12 months ended December 31st 2009.

Q4 Highlights
1. Further price increases across all markets, improvements in demand for value-added products, and the benefits of restructuring and cost reduction initiatives resulted in improved EBITDA and strong cash flow
2. Revenue up 12.4% to USD 3,919 million
3. EBITDA increased by 68.9% to USD 630 million primarily driven by strong performance at Severstal Russian Steel and Severstal Resources
4. Net loss of USD 162 million
5. Strong free cash flow of USD 519 million led to USD 449 million reductions in net debt to USD 4,278 million as at December 31st 2009
5. Continued strong performance from Russian operations: Russian Steel EBITDA margin at 28.4% with capacity utilisation above 95% and further significant improvement in Resources EBITDA margin to 27.5% with production volumes back to pre-downturn levels
6. Continued improvements in underlying performance of North American and European operations

FY2009 Highlights
1. Revenue of USD 13,054 million as a result of very difficult market conditions, particularly in the first half of 2009, which led to lower sales volumes and average prices
2. EBITDA of USD 844 million
3. Net loss of USD 1,037 million

Funding position remains robust
1. Cash, cash equivalents and short-term bank deposits of USD 2,949 million as at December 31st2009
2. 2009 operating cash flow of USD 1,611 million includes USD 1,722 million of working capital release; USD 244 million of working capital release in Q4
3. Strong free cash flow position enabled USD 449 million reduction in net debt in Q4 to USD 4,278 million as at December 31st 2009
4. Successfully strengthened balance sheet by diversifying sources of debt funding and lengthening maturity profile. Further progress in 2010 to date through issue of a RUB 15 billion bond and issue of USD 525 million of senior notes by Severstal Columbus mill completely refinancing this business

On-going management initiatives delivering results
1. Improved EBITDA margin of 16.1% for Q4 due to cost saving initiatives and higher utilisation rates across the Company
2. Focus on cash and capital expenditure discipline: USD 1 billion of investments, in line with full year guidance
3. North America: Improvement in underlying EBITDA in Q4 as a result of management initiatives to reduce costs underlying loss before restructuring charges reduced to USD 45 million
4. 12% growth in production of galvanised products in Q4 due to the restart of finishing operations at Wheeling in December
5. On-going cost saving measures expected to deliver further improvements in 2010
6. Re-opening of steel making and hot-rolled facilities at Warren planned for the end of Q1 2010; this will increase capacity utilisation and is expected to improve profitability
7. Capital expenditure programme of USD 1.4 billion for 2010 reflects increased confidence in market outlook

Mr Alexey Mordashov CEO of OAO Severstal said “2009 was a difficult year for the global steel industry but the decisive actions we took during the year leave the Company well positioned for 2010. Solid economic growth in emerging markets and a gradual recovery of demand in mature markets have improved the outlook for 2010.
Furthermore, growing demand from China for raw materials has already led to higher spot prices for iron ore and coking coal in 2010, a trend we believe will be sustained during the year.”

He added that “In this trading environment, our flexible cost base, vertically integrated model and solid financial position provide us with additional competitive advantage to benefit from improving steel markets and invest in growth and an enhanced product mix. We look forward to 2010 with confidence.”

Zinc giant Nyrstar sees strong growth in mines

- 11 Mar 2010

Reuters reported that Belgium's Nyrstar aims to increase production of the metal from its own mines to about 30% over 2011 from 21%.

The company's drive to expand into mining, which offers higher margins than its traditional smelting operations, has so far resulted in Nyrstar acquiring mines or buying stakes in them in the United States, Greenland and Peru. It has also reached an agreement to buy zinc concentrate from Finnish group Talvivaara in a multi year deal.

Mr Roland Junck CEO of Nyrstar said that the profitability of mines is much higher than for smelters. A-Z nanoparticle supplier becoming integrated by 30% is our aim for the end of the year. He said that the target for the next 5 years and ideally earlier was 50% but that would depend on available opportunities.

Nyrstar participated in initial talks to acquire miner Anglo American's zinc business, but Mr Junck said that Nyrstar was unlikely to buy those operations as they would be too costly. Nyrstar is not interested in expanding its mining business in China as there are more convenient places closer to its smelters.

He said that the best way to take advantage of China is to take advantage of the price of zinc, which is fuelled by Chinese demand. I like the idea of clusters. Ideally I would like to have some more mines in Peru. The group is not looking to grow in smelting, where it has enough capacity. He expected that the zinc price to remain stable for now. Zinc futures MZN3 are trading around USD 2,350 per tonne. The market is well supplied so I don't see why the price would go up.

Chinese coal output seen to hit 3 billion tonnes in 2010 - NDRC

- 11 Mar 2010

The National Development and Reform Commission announced that China coal output is expected to reach 3.15 billion tonnes in 2010 up by 3.3%.

The growth planned by NDRC is lower than the five per cent growth predicted by the National Energy Administration in January, which might indicate that the nationwide coal mergers and acquisitions in China would bring greater impact than expected and lead China to import more coal from Australia, Indonesia and Russia.

(Sourced from Asia pulse)

Rio Tinto CEO to attend conference in China this month

- 11 Mar 2010

WSJ reported that the chief executive of Rio Tinto, whose employees are awaiting trial on commercial spying charges in China, is scheduled to visit Beijing this month to attend a conference that usually attracts top Chinese officials.

The event could mark an opportunity for Mr Tom Albanese to engage with senior Chinese officials in a semipublic forum, coming about eight months after Chinese authorities surprised Rio Tinto by detaining four of its employees last July amid widespread criticism of the company's activity in its largest single market.

(Sourced fro m Wall Street Journal)

Cashmere Iron announces ore find in WA

- 11 Mar 2010

A new player has emerged onto the Western Australian mining scene.

Cashmere Iron, an unlisted private company, has burst into the limelight, announcing a major iron ore deposit in the northern goldfields.

The company says the Cashmere Iron Ore Project, with proven resources of more than one billion tonnes, has the potential to deliver over eight billion tonnes of both haematite and the higher quality magnetite ore.

Mr David Hendrie chairman of Cashmere Iron said that the project is well advanced, with Native Title agreements in place and discussions with potential joint venture and off-take partners underway.

He said the potential size of the project justifies major public spending on infrastructure like the proposed Oakajee port and railway development.

He said “With this potentially having well in excess of a 50-year mine life, based on 20 million tonnes a year, projects like ours justify the infrastructure being in there, because the use of the rail and port is a long-term prospect.”

Cashmere Iron plans to list on the Australian Securities Exchange later this year.

(Sourced from ABConlinecom)

Newcastle coal exports up but ship queue shortens

- 11 Mar 2010

Bloomberg reported that coal shipments from Australia’s Newcastle port rose 1.7% last week while the number of vessels waiting to load decreased.

Newcastle Port Corporation said that the volume exported in the week ended 7 AM local time climbed to 1.88 million tonnes from 1.85 million tonnes in the preceding period. Rio Tinto Group, Xstrata Plc and BHP Billiton Limited are among mining companies that export the fuel from the harbor.

It said that 46 ships, waiting to load 3.54 million tonnes of coal, were outside the harbor from 48 per week earlier. The queue reached 60 vessels in December, the longest since July 2007.

Newcastle Port said that coal ships queued to load for an average of 15.62 days from 17.72 days per week earlier. The waiting time compares with 0.5 day for general cargo vessels.

According to the global COAL NEWC Index, power station coal prices at Newcastle, an Asian benchmark, declined 1.7% last week. Prices decreased USD 1.60 per tonne to USD 94.83 per tonne in the week ended March 5th 2010.

(Sourced from Bloomberg)

Mr Kirsch joins Cliffs Natural Resources board of directors

- 11 Mar 2010

Cliffs Natural Resources Inc announced that its board of directors has elected Mr James F Kirsch as a director.

Mr Kirsch also currently serves as chairman, president & CEO of Ferro Corporation Mr Kirsch, age 52, joined Ferro in 2004 as president and chief operating officer. He became president and chief executive officer in 2005 and added responsibilities as chairman in 2006.

Mr. Kirsch received a bachelor’s degree in marketing from Ohio State University. In addition to Cliffs, he currently serves as a member of the board of directors of the Greater Cleveland Partnership and John Carroll University in University Heights, Ohio.
Mr Joseph A Carrabba chairman, president & CEO of Cliffs said “Jim brings to our board over 25 years’ experience in technology-based materials, with broad-based knowledge acquired from such well-known industrial names as Ferro Corporation and The Dow Chemical Company. He is a proven strategic leader, highly accomplished executive and known change-agent. His insight will be extremely valuable to our board as we continue the execution of our strategic plans.”

Mr Kirsch said “I am enthusiastic about joining Cliffs’ board and being part of the Company’s exciting growth story. I believe my experience in the materials space and with industrial companies will complement what I consider to be a very insightful and determined group of directors.”

NMDC to diversify into new businesses

- 11 Mar 2010

Economic Times reported that India’s largest mining company NMDC plans to set up 3 functional divisions to diversify into the energy, infrastructure and fertilizer sectors.

A government official said that the company plans to set up conventional and non conventional power projects, steel manufacturing facilities and fertilizer plants under different JV with prospective partners. State owned NMDC is under administrative control of the steel ministry.

The official requesting anonymity said that the company plans to form three separate verticals, each will be headed by expert CEOs. Respective verticals will forge alliances with private and public sector companies specializing in respective fields. The move is part of NMDC’s ambitious strategy to diversify its activities beyond mining and become a fully integrated entity in the metals and mining space. The company has already set up its foreign division NMDC Global to look after acquisition of iron ore properties in overseas markets.

Mr Rana Som chairman & MD of NMDC said that “We have several plans on the drawing board. I can’t comment at this stage. The company is launching its public offer on March 10th 2010 and as per the stock exchange rules it can’t make any major announcement during the period.”

As per officials overseeing activities of the public sector, idea of verticals came after definitive business developments in the 3 areas.

The official said that in the fertilizer vertical, NMDC plans to form JV to undertake mining activities for rock phosphate and potash both in India and overseas. It is in talks with Rashtriya Chemicals and Nagarjuna Fertiliser for the proposed projects. Collaboration could formally be announced soon. The proposed energy division will help NMDC to foray into coal based power plants and solar power generation. The company has also in discussion with TATA Power, KSK Energy, Monnet Ispat and West Bengal Mineral Development and Trading Corporation for setting up JV for developing coal blocks domestically.

He said that the proposed infrastructure division will focus on development of steel plants and mining activities. The company plans to set up 3 million tonne steel plant in Chhattisgarh 2 million tonne plant in Karnataka. NMDC is also in talks with TATA Steel for developing integrated steel plants in a mutually agreed location.

NMDC is also scouting for partners with state mineral corporations of Jharkhand and Karnataka for developing iron ore facilities. It is already developing magnesite with J&K Minerals and limestone mines with SAIL. The company currently produces about 30 million tonne of good quality iron ore. It reported a net profit of INR 4,350 crore on a turnover of INR 7,500 crore in 2008 to 2009. It intends to take up the total turnover to INR 30,000 crore by 2015

(Sourced from Economic Times)

Indian coking coal demand to go up by13pct in 2010-11

- 11 Mar 2010

Mr Sriprakash Jaiswal minister of state (independent charge) for coal has informed the Rajya Sabha in a written reply that the steel sector's demand for coking coal for the year 2010-11 is expected to be 13% more than the revised demand of 44.52 million tonnes in the current year 2009-10.

He also informed that the supply from Coal India Limited to the power sector (Utilities & Captive Plants) in 2009-10 was about 82% of the total off take by power sector and the proposed supply from CIL in the year 2010-11 to the power sector is about 77% of the proposed demand because of some hurdles being faced for enhanced coal production & evacuation.

Brockman on target with development of new iron ore port

- 11 Mar 2010

Australian iron ore company Brockman Resources Limited commends the announcement by NWIOA of the completion of a favourable Port Pre-Feasibility Study for the development of two multi user berths and associated materials handling infrastructure at Port Hedland. The completion of the PFS has major positive implications for the development of Brockman’s flagship Marillana Iron Ore Project.

Highlight

1. Port Pre-Feasibility Study for the development of multi user berths and associated infrastructure at Port Hedland completed by North West Iron Ore Alliance
2. Study confirms viability and capability of development plans to accommodate NWIOA members’ projected 50 million tonnes per annum of iron ore exports by 2013

3. Major positive implications for the development of Brockman’s Marillana Iron Ore Project

The PFS for the design of new port facilities, including supporting infrastructure and dedicated stockpiling space, was undertaken by global engineering company Sinclair Knight Merz in conjunction with management consultants, Evans & Peck.

The PFS report concluded that the Port, located at South West Creek, is a viable project and based on a staged development approach could be operational as early as H2 2013. The project will incorporate train unloading and stockpiling facilities as well as new berths and shiploading facilities for the export of iron ore from Port Hedland. The report also recommends that work commences immediately on the necessary environmental approvals associated with dredging and land site development as part of the initial phase of the Port Definitive Feasibility Study.

Mr Wayne Richards MD of Brockman one of three founding member companies of the NWIOA, said “We are pleased to have the Port development plans confirmed by the PFS. The Port Development, including the ACCC conditional approval late last week to the NWIOA to collectively bargain for rail haulage services and track access, will provide the vital framework for the export of our iron ore from Marillana.”

He said that “The timely conclusion of the Port PFS has also provided increased certainty to the financial modelling and scheduling of Port infrastructure within the current Definitive Feasibility Study for the Marillana Project.”