July, 23 2005
Anti Dumping duty on Billets from China, Russia withdrawn
The department of revenue has withdrawn anti-dumping on specific grades of steel originating from Russia and China. The withdrawal of duty which was imposed more than four years ago, according to industry sources, will benefit the domestic seamless pipe industry.
While the user industry has welcomed the withdrawal of the anti-dumping duty, larger units are planning to take up the issue with the government as it would have adverse effect on the steel industry.
The government, it may be recalled, had imposed a provisional anti-dumping duty on certain grades of alloy and non-alloy steel billets, bars and rounds originating from Russia and China in December 2000.
Later definitive duty was imposed on these items. The rate of dumping duty was $90 per tonne on steel items coming from Russia and $133 per tonne on steel goods originating from China.
The duty had helped domestic producers to keep the prices of specific grades of steel at unreasonable high level.
JSW Steel Q1 net up 85%
JSW Steel today reported a 85% increase in net profit at Rs 200.36 crore for the first quarter ended June 30, 2005 as against Rs 108.07 crore in Q1FY05.
According to a release issued by the company to the BSE today, total income increased to Rs 1,541.27 crore in Q1FY06 from Rs 1,285.78 crore in Q1FY05.
Giving a business outlook, another release issued by the company to the BSE said the up tick in prices of scrap DRI and billets signal the arrest of further fall in prices of steel products.
"The company is likely to maintain profitability even at current prices due to benefits that may accrue on account of commissioning of the colour coated line in Q2, second power plant of JSW Power in Q3 and commissioning of expansion projects by March 2006," the release added.
MESCO Group proposes expansion
The Mid East Integrated Steel Limited, promoted by the Mesco Group which has been embroiled in legal tangles over the repayment of its dues, today proposed to expand the capacity of its steel plant at Duburi to 7 million ton with a total investment of Rs 20,000 crore.
MISL would take up the expansion work in collaboration with the UK-based Stemcor Group. Managing Director, Stemcor India, Mr Mathew Stock, who accompanied Mr Singh, said they would invest Rs 1,000 crore in the MISL project
The Mesco group chief said they were ready to repay all the outstanding dues to everybody, including the state government.. Chief minister Mr Patnaik, however, sounded non-committal. All the aspects would be examined carefully, he said.
MISL had been incorporated in 1992 as an 100 per cent export oriented unit in collaboration with a Chinese company , China Metallurgical Equipment Corporation now known as Sinosteel Corporation. The first blast furnace was fired in 1995, but, the project had run into rough weather due to financial crunch and legal tangles over repayment of loan
IIT Kharagpur launches steel course
Indian Institute of Technology (IIT) Kharagpur today launched its postgraduate diploma in steel technology course. The year-long course will start from July 25 and will cost Rs 1.25 lakh per candidate. Upto 25 candidates could enrolled every year in the programme.
The programme would self-financing and the candidates would be sponsored by steel units. Tata Steel has provided a seed money of Rs 25 lakh to help in improving the infrastructure facilities for initiating the programme.
The curriculum and the syllabi for the course were worked out by faculty members from IIT Kharagpur in discussion with Tata Steel representatives like Amit Chatterjee, chief technical officer of Tata Steel.
Out of the 18 executives enrolled at present, nine were from Tata Steel and the rest were from Rashtriya Ispat Nigam, Essar Steel and Steel Authority of India.
B Muthuraman, managing director of Tata Steel, said at the launch programme that the course would benefit the steel industry as a whole.
Mittal Steels Chiria plan hits roadblock
Mittal Steels plan to set up a mega steel plant in the country may hit a roadblock even before a formal MoU is signed for the project with the Jharkhand government.
According to sources, the state government has offered mining rights to the worlds largest steel maker in the Chiria mine region, which is already in the midst of a legal battle between the state government and Steel Authority of India Ltd, whose subsidiary IISCO has mining rights there.
After getting a stay order against the state governments decision from the High Court, the PSU steel maker has made an appeal in the Mining Tribunal. It is also exploring other legal options to protect mining lease.
In the absence of alternate plans to provide clean mining rights elsewhere in the state, sources say, Mittal Steels plan to set a 11 million tonne steel plant may get delayed.
It is expected that Mittal Steel would require iron ore mines with reserves of about 600 million tonne. This would mean mining outside the disputed IISCOs mine areas, which is basically forest land. It is learnt that NGOs may rake up environmental degradation issues making mining activities here next to impossible.
With an estimated reserve of about 1 billion tonne, the Chiria mines region is considered a gold mine for meeting iron ore requirement for steel plants. Besides, Mittal Steel, Essar, Jindal and several other steel companies have been promised mines here for captive use.
The legal and environmental issues connected with the Chiria mines may put a question mark on investments to the tune of Rs 80,000 crore in the state.
Jharkhand government has also begun an exercise to identify iron ore mines elsewhere in the state to protect investments coming in the steel sector.
JSW Steel to spend Rs 1800 cr in next 12 months
JSW Steel Ltd is set to spend about Rs 1800 crore as capital expenditure in the next 12 months, its Vice Chairman & Managing Director Sajjan Jindal said today.
Speaking at an analysts meet here, Mr Jindal said the capex for the next 12 months is restricted to Rs 1800 crore and thereafter another Rs 700 crore in the next year. Of this total sum, as much as Rs 1750 crore will come in the form of internal accruals and the remainder 750 crore will be in the form of debt.
Commenting on the business outlook for the current fiscal, Mr Jindal said the up tick in prices of scrap DRI and billets signal the arrest of further fall in prices of steel products. ''The company is likely to maintain profitability even at current prices due to benefits that may accrue on account of commissioning of the colour coated line in Q2, second power plant of JSW Power in Q3 and commissioning of expansion projects by March 2006.'' The cold runs of the colour coating line (one lakh tonne capacity) started in July 2005, and is expected to be operational during the second quarter of the current fiscal, he said.
Replying to a question, he said ''the expansion projects to increase capacity of the steel plant from 2.5 million tonne per annum (MTPA) to 3.8 MTPA and pellet plant capacity from 4.2 MTPA to 5 MTPA are progressing satisfactorily and are expected to be on stream as scheduled.'' It has also finalised critical long delivery contracts for its 1 MTPA cold rolling mill complex, he added.
Orissa Minister reviews ongoing steel projects
Orissa steel and mines minister, Mr Padmanav Behera reviewed the progress of the proposed 19 plants to be set up at Duburi in Jajpur district and other neighboring districts
5 out of the 19 steel plants for which MoUs had been signed, were at an advanced stage of completion. These projects were being promoted by Maheswari Ispat Limited, Aarti Steels Limited, Visa Industries Limited, Jindal Strainless Steel Limited and OCL India Limited.
On the other hand, steel plant projects of AML Steel and Power Limited, Tata Iron and Steel Company, Special Steel Limited and Sterlite Iron and Steel Limited have not virtually taken off. Representatives of Tata Steel said the civil construction work of their steel plant project would start shortly
Representatives of the industrial houses attributed the delay in commissioning of projects to failure in the commissioning of 400 KV line, lack of water storage facility and high transport charge for the iron ore to the delay in the progress of their projects.
SAIL to consider arrears for IISCO staff after merger
SAIL will consider the issue of paying wage arrears to the employees of its wholly-owned subsidiary, Indian Iron & Steel Co once its merger with the parent is completed by October
"We will examine the issue of paying wage arrears of Iisco employees after the merger," SAIL chairman VS Jain told FE. "We will consult with the government what could be done and how it could be done," he said.
Iisco employees fear that, while their wages are likely to be brought up to existing levels at SAIL, they might not get arrears due to them since 1997. Iisco employees had not got any wage hike since 1997 as the company was making losses. However, it has turned the tide and made profits now. The arrears are expected to add up to around Rs 400 crore.
"Our objective is to take steps to sustain the company and make the employees happy so that they deliver their best," Mr Jain said.
No Reliance for Mittal in Kazakhstan
Reputations travel far and wide. How else can you explain steel baron LN Mittals reluctance to compete with Reliance in Kazakhstan!
According to those in the know, at a dinner hosted by the Kazakh President, Mittal suggested that his company could do business with Kazakhstan.
He then went to tell the Indian ambassador, who was also present, that Reliance should be kept out of the country. The ambassador, being a typical IFS babu, documented this conversation and sent it to Delhi.
The bottomline is, Mittal is willing to do business with a PSU with a poor track record for oil discoveries, but not with a company that tops the charts! No prizes for guessing why! Brains and capital.
JP Singh take charge as Director in SAIL & RINL
Shri J.P.Singh, Jt. Secretary, Ministry of Steel, has been appointed as the Government Director on the Boards of three Steel Companies in the Public Sector, Steel Authority of India Limited (SAIL), Rashtriya Ispat Nigam Limited (RINL) and Indian Iron and Steel Company (IISCO).
Known as one of the main architects of the draft Steel Policy of the Government of India, Shri Singh earlier won acclaim for successfully steering the formulation of the raw materials policy for the Steel Development Wing.
As Deputy Secretary, Ministry of Steel, he was in charge of licensing during the critical period from 1990 to 1995 when the liberalization process was in the transition phase. His contributions in drafting of the industrial policy for Delhi in 1998 were also well appreciated and recognized.
Cement companies keen on tie-up with SAIL
Jaypee Cement, Shree Cement, Birla Corporation and the State-owned Cement Corporation are keen on joining hands with Steel Authority of India Ltd (SAIL) to set up joint venture cement plants at Bhilai and Bokaro, reports Business Line.
According to sources, all these cement companies had responded to their advertisement seeking expression of interest (EOI) for setting up cement plants adjoining to those steel units. Cement companies prefer to use flyash over slag as it is cheaper.
Though the size of the plants are yet to be finalised, initial estimates suggest that each would be of one million tonne (mt) per annum capacity, which may be expanded to 2 mt per annum. The cost of each would be approximately Rs 350 to 500 crore.
For Bhilai, there are three interested parties Jaiprakash Associates (formerly known as Jaypee Cement), the Birla Corporation, belonging to the Kolkata-based MP Birla Group, and Shree Cement.
For the proposed cement plant in Bokaro, there are 2 suitors. They are Shree Cement, whose existing facilities are located in Rajasthan, and Cement Corporation of India Ltd, the public sector company, which runs 11 plants in several locations
Russia exports of ferrous metals grow 54% in H1
Metallurgical enterprises in Russia increased exports of ferrous metals 54% and exports of non-ferrous metals 22% in the first half of 2005, according to preliminary data, Vladimir Lavrishchev, deputy director of the industry department at the Industry and Energy Ministry, told Interfax.
"According to preliminary data, $12 billion worth of ferrous metals and products were exported to foreign markets over the first six months of this year and $7 billion worth of non-ferrous metals and products were exported, which is a 54% and 22% increase, respectively, over the first half of 2004.
In addition, $460 million worth of iron ore was exported and $300 million worth of coke was exported, which in money terms is 130% and 30% more, respectively," Lavrishchev said.
The overall volumes of exported iron ore increased 11% year in the first half of 2005, ferroalloys increased 35%, semi-finished steel products rose 22% and flat roll went up 16%. Exports of rolled ferrous metals increased 8.6% and amounted to 15 million tonnes
RMB revaluation effect on China's iron ore and steel markets
China's groundbreaking revaluation of the RMB on July 21 will not have a substantial impact on their steel sector as a whole, either in terms of iron ore imports or steel prices.
In terms of iron ore, analysts say not only is the scale of the revaluation small, but the government's macro controls on the steel sector and fixed assets investment remain strong in the second half of this year, and the iron ore supply on the international market is increasing and is moving towards possible oversupply. Iron ore imports will be cheaper for domestic steel companies.
In the steel market, high-end steel prices will come down slightly for both imports and domestic production, while low-end exporters will see their profits narrow. However, the impact will different on companies depending on their type of product. High value added prices will drop slightly on the domestic market, while the new exchange rate will eat into the thin margins of companies exporting more low end types of steel.
China will also benefit in imports of high value added steel products. Because domestic output of high value-added products can not meet market demand, a great number of steel products are still imported, and these will be somewhat cheaper
RMB appreciation would also have negative impacts on the industry. Since major domestic steel companies have started to produce high value-added steel product, they fix prices for those products based on international prices. As the RMB value increased 2%, the RMB price will fall accordingly, meaning less profits for domestic companies from sales of high value added products," he said.
The 2% increase might hurt steel companies which export steel products, because most of exported products are fairly low value added, meaning that their margins are already thin. A 2% increase in the RMB value means a 2% decrease in profit for those companies.
Vitkovice Steel profit up five times in H1
Czech steelworks Vitkovice Steel made pre-tax profit worth CZK 1.818 billion in the first half, up more than five times on the year. Sales added more than 45 percent to CZK 8 billion.
A year ago, the company made gross profit of CZK 335 million on CZK 5.5 billion in sales.
Last week, the cabinet decided to sell the state's 99 percent share in the steelworks to Russia's Evraz Group for CZK 7.05 billion. Evraz should invest another CZK 2.5 billion in the company and CZK 800 million in the region.
In the first half of the year, steelworks had to cope with only moderate recession that started after last year's boom in the steel industry, but results for the second half may be worse. "The market situation in the steel industry is becoming much tougher in the second half," said Vitkovice Steel CFO Jiri Chuchro
Andritz to supply a complete stainless steel plant to China
Graz, 22 July 2005. International Technology Group Andritz received an order from JIUQUAN Iron & Steel Co. Ltd., China for the supply of a complete plant for the manufacture of cold-rolled stainless steel strip with an annual capacity of approximately 600,000 tons. The Andritz Group is in charge of engineering, supply of the key components, supervision of installation and start-up of the various parts of the plant.
The order comprises of a direct rolling annealing and pickling line with integrated 6-high cold- rolling mill, a continuous annealing and pickling line, two 20-high cold-rolling mills, a skinpass mill, a grinding line and two edge trimming and dividing lines
The stainless steel plant processes hot-rolled strip up to a thickness of 6 mm and with a maximum width of 1,600 mm to cold-rolled strip with a minimum thickness of 0.3 mm. Further processing of the coils to strip is carried out in the edge trimming and dividing lines.
Andritz Group is one of the global market leaders for advanced production systems for pulp and paper, steel, and other specialized industries. Andritz has a staff of approx. 5,400 employees worldwide. It develops and manufactures its high-tech systems at 15 production sites in Austria, Germany, Finland, Denmark, France, Netherlands, USA, Canada and China.
Acerinox H1 net 156 million Euros
Acerinox SA said net profit rose to 156 million euros in the first half to June 30 from 153 million euros a year earlier, in line with analyst estimates for net profit of 147-157.2 million euros.
In a statement, Acerinox said slower global economic growth and high raw material prices were offset by a strong performance from its North American Stainless (NAS) unit, where net profit climbed 37.5 pct to 98.9 million euros.
Group EBITDA grew 3.6 pct to 309 million euros, missing forecasts for 323.4-337.1 million euros, on a 23.8 pct rise in sales to 2.327 billion euros.
Sales were in line with analyst forecasts for 2.324-2.350 billion.
Total production increased 17.2 pct, while the group's cold rolling flat stainless steel production climbed 20 pct
Isdemir Signs Credit Agreement with Societe General Bank Paris
The state-owned Iskenderun Iron and Steel Works (ISDEMIR), one of the subsidiaries of Eregli Iron and Steel Works signed a $50,100 million credit agreement with the Societe General Bank Paris.
Eregli Iron and Steel Works said that Isdemir signed a credit agreement on 30 June 2005 with the Societe General Bank Paris. The company will reportedly use this credit to finance the projects of the 5th and 6th cocking coal batteries, coal injection and machines to carry the cocking coal.
SGS to undertake Logistics and Technical Control OMZ SpecStal
SGS Vostok Limited has begun exercising logistics and technical control at the Russian plants of OMZ-SpecStal, an OMZ (Uralmash-Izhora Group) (OMZ) division specializing in the production of specialty steels.
SGS Vostok Limited was founded by SociGale de Surveillance, Geneva, and is a part of the SGS Group, a world leader in international trade inspection, verification, testing, and certification services, with offices in more than 140 countries.
This is the first time a Russian metallurgical company has outsourced not only control of the raw materials but also monitoring of the turnover of raw materials and document management, and also the auditing of waste. More than 50 SGS inspectors are working 24 hours a day at OMZ-SpecStal plants in St.Petersburg and Yekaterinburg.
The provision of reliable and systematized information from SGS will allow OMZ-SpecStal to optimize production procedures and decrease the costs during processing and logistics operations. Taking into consideration SGS recommendations, OMZ plans to invest into the modernization of OMZ-SpecStal warehousing in the near future.
OMZ-SpecStal is metallurgical division of OMZ which includes Skoda Steel (Czech Republic), the OMZ-SpecStal plant in St. Petersburg and the Uralmash-SpecStal plant in Yekaterinburg. OMZ-SpecStal is one of the leaders in production of forgings and castings, two- and three-layer sheets and slabs made from specialty steels and alloys, rotors, nuclear reactors casings, chill moulds, tread rings and other products for the domestic and international machine building industry.
Indonesian Coal miners initiate benchmark
Coal mining companies in Indonesia are developing an output-specific price index that will be used as a reference in domestic and international trade.
Indonesian Coal Mining Association chairman Jeffrey Mulyono said the Indonesian Coal Index (ICI) would reflect the average of transactions concluded with local and global consumers over a certain period of time, possibly a week.
"With such a reference, hopefully our coal prices will be more stable," Jeffrey said on the sidelines of a coal seminar on Wednesday. "We hope to realize the index by the end of the year," he added.
At present, Indonesia's coal price is included in the Barlow Jonker Index (BJI), which monitors coal from Australia and Asian countries.
Jeffrey said Indonesia's coal had lower caloric value compared to other countries but lower sulfur and ash content, desirable qualities for power plants. The BJI concentrated mainly on caloric value, an area where Indonesia had a disadvantage, he said. "The ICI will portray the advantages of the (low) sulfur and ash, although this also means low caloric value."
Indonesia is the world's second-largest exporter of thermal coal, which is used in power plants, and the fifth-largest exporter of ordinary coal, which is a lower grade used by steel plants.
High coal prices, prompted by rising global demand as oil prices break new records, have encouraged Indonesia to increase production of the resource.
Some 70 percent of the 131 million tons of coal produced last year was exported to Japan, Taiwan, South Korea, India and China.
The association has estimated that total coal exports of various types will continue to increase to 193 million tons by the year 2010; from about 91 million tons in 2004 and about 104 million tons this year.
The demand for Indonesian coal from China alone is projected to increase by 18 percent over the next five years, while demand from India is expected to surge 16 percent for the same period.
The coal price, which has fluctuated around US$28 a ton during the period 1999 to 2003, surged to average of $44 per ton in 2004 after major coal producer China stopped exporting to meet its growing domestic needs.
Excel Coal forecasts profits for 2005
Excel Coal Ltd's shares shed almost eight per cent as profit takers struck the New South Wales coal miner. Investors took profits after pushing the company's shares up 20 per cent this week - ahead of the release of its fourth quarter production report which included an strong outlook and a profit upgrade.
The coal miner now expects to report net profit in the range of $90 million to $95 million for the financial year ending June 2005.. The result will be driven by $70-75 million from its mining operations, up from prior guidance of $60-70 million, plus $20 million from recognition of a deferred tax benefit from remaining tax losses at Wambo.
The miner said it began delivering into new coking coal contracts during the fourth quarter of 2004/05 at almost double the prices of 2003/04.
Excel said all its operations achieved very strong production results in the final quarter of 2004/05. Run of mine coal lifted 43 per cent in the quarter to 1.984 million tonnes against 1.387 million tonnes in the previous corresponding period. The full year total rose 8.5 per cent to 6.483 million tonnes. Saleable coal production during the quarter was up 44 per cent on the same time last year at 1.570 million tonnes pushing the full year figure up 9.6 per cent to 4.99 million tonnes.
SDI Orders Caster Revamp
Steel Dynamics Inc. has contracted SMS Demag to modernize the two strands of its thin-slab caster. SMS designed and installed the CSP plant (Compact Strip Production) plant 10 years ago, the first strand starting up in 1995, and the second strand in 1996.
SDI casts 58-mm thick slabs in widths ranging from 1,016 to 1,638 mm, with a capacity of 2.2 million metric tons/year.
In the upgrade plan, SMS will extend the strand-guide system to include a fourth segment, and convert the oscillator from electromechanical to hydraulic operation. By extending the strand-guide system SDI will be able to cast at faster speeds to increase production. This change integrates the drive rolls of the pinch roll bending unit into the new fourth segment.
The new hydraulic oscillator will allow SDI operators to follow various curves, strokes and frequencies as a function of the casting parameters, for more flexible operation.
SMS will supply four "Segments 4," the pinch-roll bending units and hydraulic cylinders, the hydraulic control system and the oscillator control system.
The redesigned caster will be commissioned next year
Major steel projects to start operation in Thailand
A number of major steel projects are expected to be officially put into operation at the end of this year, according to the Viet Nam Steel Association.
They include the Phu My cold rolled-steel project with a capacity of 250,000 tonnes a year and the Phu My Steel Factory with a capacity of 500,000 tonnes of steel ingot a year, which is expected to be put into production in October 2005. Procedures are being completed for the project enlarging the Thai Nguyen Steel Factory with a capacity of 300,000 tonnes of steel ingot a year. Final work is being completed for the Da Nang rolled steel factory with a capacity of 250,000 tonnes per year, which is scheduled to be put into test run in the 3rd quarter.
These projects will help increase the country's steel production capacity, stabilising the domestic steel market, which has been badly affected by the world steel prices.
Pirelli and Continental set up new steel cord factory in Romania
Pirelli and Continental opened their JV of 80:20 for steel cord production plant of Cord in Slatina, Romania.
The factory once fully operative will have yearly production of 30,000 tons of steel cord which will be destined for the fast growing East European markets.
Steel cord is used by tyre producers as main reinforcement material for radial tyres.
The new facility will require an investment of 40 million euros over several years.
Dofasco completes acquisition of Quebec Cartier Mining
Dofasco announced today that it has successfully completed the acquisition of Quebec Cartier Mining Company (QCM) following receipt of regulatory approval.
QCM is a leading producer of iron ore products in Quebec, with executive offices located in Montreal. The acquisition was previously announced on June 9, 2005.
Dofasco effected the acquisition by purchasing all of the preferred shares of QCM owned by CAEMI of Brazil and Investissement Quebec for total consideration of $306 million. Dofasco already owned the remaining one third of the preferred shares. Effective July 22, 2005, all of the outstanding preferred shares of QCM have been converted into common shares, resulting in Dofasco holding approximately 98.7% of the common shares.
Dofasco is a leading North American steel solutions provider. Product lines include hot rolled, cold rolled, galvanized, Extragal(TM), Galvalume(TM) and tinplate flat rolled steels, as well as tubular products, laser-welded blanks and Zyplex(TM), a proprietary laminate. Dofasco's wide range of steel products is sold to customers in the automotive, construction, energy, manufacturing, pipe and tube, appliance, packaging and steel distribution industries.
Trade Union clashes with Hiveld Steel
Members of the trade union Solidarity start with industrial action from Monday that will have a seriously negative effect on production at Highveld Steel (HVL) in Witbank.
This comes after Solidarity and the management of the company failed to reach an agreement in wage negotiations.
Solidarity is demanding an 8% increase for its members at Highveld Steel, while the company is only prepared to offer 5.5% with a 5% increase in housing allowances to employees.
Thailand to simplify custom duties
Customs tariffs for the steel and petrochemical industries will be restructured in 2007, covering 5,505 items overall. Finance Ministry officials said the two sectors were the last industrial groups to be brought into the restructuring, which aims to simplify tariffs into three rates.
Under the new system, raw materials will face a 1% import tariff, intermediate goods 5% and finished products 10%.
Both the steel and petrochemical industries are critical sectors for the country's economy, and are key upstream materials for a number of other sectors,'' one official said. ``Bringing down import rates will be critical for the country's future competitiveness.''
SteelCorr's German financing approved
The German government has approved a $227 million loan to SteelCorr, apparently eliminating the last major financial hurdle before construction begins on a steel mill in Lowndes County.
SteelCorr plans to build the $725 million mill on 1,380 acres just east of the Golden Triangle Regional Airport. SteelCorr will turn scrap iron into 1.5 million tons of high-grade steel a year for the automotive industry.
German bank KfW, GE Capital, SteelCorr and Severstal are financing the project. SteelCorr and Severstal North America, which is based in Detroit where it operates a steel plant, will begin completing operating agreements between the two firms within the next two weeks.
ICH Maxico buys Republic Engineered
Republic Engineered Products has been purchased by ICH, a steel producer and processor based in Mexico City.
Republic, the largest producer of special bar quality steel in North America, would be acquired by ICH in a stock purchase of all shares. Terms of the agreement were not disclosed Friday afternoon.
This combination will create an international strategic alliance, said Joseph F. Lapinsky, Republics president and chief executive officer. Republic will continue to operate a stand-alone business but will have a very strong resource in Mexico
Mittal Steel USA Repurchases Bonds
Mittal Steel ISG USA Inc. announced the repurchase today of $100 million aggregate principal amount of its 6.50% Notes due April 15, 2014, pursuant to a single negotiated purchase transaction.
The bonds were acquired at a purchase price of 99.625% of their aggregate principal amount, plus accrued interest, and will be canceled by the company. The company financed the purchase of the notes with cash on hand.
