July, 30 2005
SAIL plans overseas company to source coal
SAIL is planning to float a new company to meet its coking coal requirements through coal contracts and acquisition of prospective mines in overseas markets. The new company, which will act as the overseas business arm of SAIL, would function separately from proposed joint venture company that SAIL and Coal India are planning for developing dedicated coal linkages.
A large part of our coal requirements are currently being met through imports. We have tried different measures to secure guaranteed supplies of coal earlier also. Creation of a new entity all together for meeting coal requirements is also being considered by the company, SAIL chairman V S Jain told. He said SAIL was also talking to CIL for a joint venture company but nothing definite had yet emerged from the proposal. SAIL wants to form the JV with CILs overseas subsidiary, which is yet to be created.
It is looking at quick solution for its coking coal requirement as domestic supplies have become erratic. Even at present SAIL meets 60% of its 10 million tonne annual coal consumption through imports. Mr Jain said with SAIL planning to expand steel capacity to 20 million by 2011-12, linkages to dedicated coal supplying areas would become more important.
He said the new company would not only source guaranteed supplies of coal through short-term and long-term contracts but would also explore the possibility of investing in coal fields abroad with minority interest and even acquire good properties.
SAIL had begun the hunt for overseas coal mines some time back in Australia but in the absence of good offers and properties its exercise had failed to take off. The proposed company would give a dedicated character to this exercise. SAIL has already begun afresh scouting new properties in Australia, New Zealand and Russia.
Indian Steel PSUs advised to check prices
In view of the decline in steel prices in the domestic market since May this year, public sector steel plants have been advised to keep a tab on the prices and accord due priority to domestic demand, the Rajya Sabha was informed today.
In a written reply to a query, Steel Minister Ram Vilas Paswan said though international and domestic steel prices began surging high in the beginning of 2003, domestic steel prices have taken a hit registering decline since May this year.
In a liberalised environment, the government does not intervene directly in the market to influence prices as market forces determine them, he said.
However, in the past two years the government through its policy initiatives has taken several steps to ensure availability of steel, especially to the small sector and stabilise the prices in the domestic market.
The government removed the requirement of mandatory certification of imported steel materials by the BIS to ease the supply of these inputs to downstream processors by providing them an option of unimpeded import, Paswan said.
Further, the customs duty on steel has been brought down significantly and hence the steel plants in the public sector have been advised to keep a check on prices and accord due priority to domestic demand. Besides, priority allocations of iron and steel materials for the SSI sector have also been substantially increased, he pointed out.
SAIL BSP to get a new caster
The SAIL board has approved installation of a 'Slab Caster with associated facilities for steel melting shop SMS- II at an estimated cost of Rs 520 crore.
The single-strand slab caster, with a capacity of 0.80 million tonne per annun (MTPA), will augment the plant's capabilities to produce high quality plates and rails conforming to the stringent specifications for Indian Railways
The steel produced in SMS II is used as a feedstock for the plant's plate mill and rail and structural mill. The project is envisaged to be completed within 26 months.
Metaliks to expand
Tata Metaliks will be setting up a 500,000 tonne billet plant in Kharagpur, adjacent to its existing plant site. The company has approached the West Bengal government for additional land to the tune of around 500 acres.
Mr T Mukherjee, chairman of Tata Metaliks, said that the company would set up a 0.5 million tonne billet plant and M N Dastur & Co has been appointed to conduct the feasibility study which was expected to be ready over the next 8-10 weeks. The pre-feasibility report was also done by M N Dastur & Co.The investment in the venture would depend on the technology used for billet making, whether the company planned to adopt blast furnace or not.
The move to diversify into steel making was in tandem with the company's target of achieving a turnover of Rs 1,000 crore by 2006-07 from the current level of Rs 320 crore
Billets manufacture would also complement Tata Steel's product range. Tata Steel happened to be the parent company of Tata Metaliks.
Other downstream options being weighed were castings. Castings capacities in the developed world were being replaced by new capacities in China and India, automobile castings were being increasingly outsourced from India by international automobile giants.
Railways to rescue wagon manufacturing companies
The Railway Ministry has decided to extend a helping hand to four ailing wagon manufacturing companies to put them back on track.
Burn Standard Company Ltd (BSCL), Barithwaite and Company Limited (BCL), Bharat Wagon and Engineering Company Limited (BWEL) and Bridge and Roof (B and R) were running below capacity as the supply of critical components was inadequate.
The Railway Ministry has agreed to provide bogies and couplers, besides steel, wheel sets and bearing as free supply items from this fiscal so that the four companies can run to full capacity
Apart from shortage of bogies and couplers, steel and wheel sets which forced these companies to run below capacity, decreasing trend of wagon prices from 1997-98 to 2003-04 eroded the working capital of the four companies, he said.
BRPSE has approved revival packages of BSCL, BCL, BWEL and B&R for Reconstruction of Public Sector Enterprises while the government has given them financial support in the form of non-plan loan to meet the shortfall for salaries and wages.
Engg exports likely to double in 5 yrs
Engineering products exports from the country have the potential to grow at a much higher rate in the next five years than the current $13.29 billion, if cost disability factors such as higher transaction costs, cumbersome procedures etc., can be greatly minimised. This is as per the preliminary findings of A.F. Ferguson & Co, commissioned by the Engineering Export Promotion Council (EEPC) to prepare a strategy paper for boosting engineering exports in the next five years
Engineering exports, according to Ferguson, are estimated to touch $27.4 billion by 2009-10 from the current level, indicating a doubling of the annual growth to 30 per cent from 15 per cent now. Informed trade sources told Business Line that Ferguson has suggested creation of a `Raw Material Policy', which will ensure supply of raw materials to exporters at international prices. This is significant in the context of spurt in prices of vital inputs such as steel and pig iron in the last couple of years. The final strategy paper is likely to be submitted to the council soon.
The key support elements identified for successful execution of engineering exports strategy are infrastructure (covering ports, roads, rails, power and SEZs), technology improvement and capacity enhancement, domestic and foreign investments in manufacturing, exploiting the potential for outsourcing of engineering products and export finance.
According to sources, it is suggested that the key focus should be on increasing exports of higher value-added products instead of intermediate goods/low value items. The objective should be to move towards higher value-addition and concentrate on thrust products (about 19 product categories identified). The share of thrust products in engineering exports is estimated at $4.82 billion (36 per cent), and with the targeted 15 per cent per annum growth in overall engineering products, the share of thrust products is estimated to increase to $13.02 billion (47 per cent) by 2009-10.
The strategy paper has observed that most of the engineering products exported from India fall in the low and low to medium value-addition, which leads to thin margins. It is pointed out that as a fall-out, most of the product categories have reported exports of less than $500 million in 2003-04, and of all the engineering export categories, only two - prime iron & steel (including pig iron) and commercial vehicles - have exports exceeding $500 million.
JSWL moving ahead for steel plant in West Bengal
Mr Sajjan Jindal inspected two plots measuring around 4,000 acres at Dudhkundi and Indkhanra near Kharagpur and hopes to lay the foundation stone of his Rs 10,000-crore steel plant on one of them in three months. The unit is likely to take 36 months for commissioning
Mr Jindal said that Initially, we expect to produce around 2.5 million tonnes of steel annually but our ultimate target is to produce 5 million tonnes every year
The government, however, said the key issue of iron ore supply from Jharkhand had yet to be sorted out. No concrete solution emerged at the recent meeting between Buddhadeb Bhattacharjee and Arjun Munda, commerce WB Industries Minister Nirupam Sen said this evening.
Expressing faith in the governments efforts, Jindal said: With the Bengals chief ministers efficiency, iron ore wont be a problem. Jharkhand is dependent on Bengal for water and power. I dont think any eastern state would hinder anothers progress. He will meet the chief minister in Calcutta today.
SAIL's BSP profit up 43% in Q1
Bhilai Steel Plant (BSP), a unit of the government-owned Steel Authority of India Limited (SAIL), has posted a record 43 percent jump in profits in the first quarter of this year compared to the last.
BSP earned a net profit of Rs. 7.8 billion during the first quarter ended June 30, as against Rs. 5.51 billion profit it made in the first three months of the previous fiscal year 2004-05.
The steel mills turnover has also gone up to Rs. 23.6 billion during first three months of the current fiscal, which is 17 percent higher than last year's first quarter turnover, Rs. 20.16 billion.
The record success in quarter one profit comes in the backdrop of a severe shortage of imported coking coal crisis, which halted work at coke oven units and blast furnaces.
The plant is investing Rs. 50 billion in phases till 2012 for modernising five blast furnaces, rebuilding the ninth coke oven battery, installing a new coke oven battery and setting up a pipe plant of 0.2 MT capacity.
Currently, BSP produces five million tonnes of hot metal per annum, which will rise to seven million tonnes per annum by 2012. The plant, which recently started producing 78-metre-long rails, also planned to produce 260-metre-long rails.
IISCO plan faces legal tangle
Bitter legal wrangling between the state government and Indian Iron and Steel Company (IISCO) is apparently taking its toll on the proposed expansion plan of the companys Chiriya mines in the neighbouring West Singhbhum district. IISCO has decided to invest about Rs 2,000 crore to upgrade the Chiriya mines that has Asias one of the largest and best quality of iron ore.
Chirya mines is supposed to play a crucial role in SAILs proposed plan to enhance steel production by 2012.
IISCO is unable to furnish various details of the mines to Mecon, which has been entrusted to prepare the detail project report (DPR) of the expansion programme. Mecon has been constantly sending reminders to IISCO to furnish further details about layout of the different blocks of the Chiriya mines, the areas within these blocks where the quality of ore is good and other details of the mines for making the DPR. Mecon, which has already started its initial groundwork, is supposed to submit the report to IISCO by the end of this year.
But the problem is that we are still unable to provide such details as the state government has cancelled the leases of three of our important mining blocks. Unless we get back the mining lease of these three blocks, it is difficult for us to provide such details. We have moved the court against the governments decision, a senior official of the company said.
The legal complications between the state government and IISCO started after the government, last December, cancelled the mining leases of these three blocks on grounds that IISCO did not apply for their renewal in time.
Recently, Jharkhand High Court has directed the Central Mining Tribunal to resolve the dispute within three months.
IISCO sources said the company recently applied to the West Singhbhum district administration for additional 405 hectors in and around Chiriya mines. We need this land and we are optimistic that government would grant it, an official said.
Guy Dolle - Arcelor May Buy China Stake
Arcelor SA, the world's No. 2 steelmaker, is in advanced'' talks to buy a stake in China's Laiwu Steel Corp. as the company seeks to expand in Asian countries and in Brazil, where production costs are low, Chief Executive Guy Dolle said.
Luxembourg-based Arcelor is also in talks with other Chinese steelmakers for a possible stake purchase, Dolle said. Arcelor expects to reach an agreement with a Chinese company in two or three months, he said. This is not the only one,'' Dolle said, in reference to Laiwu Steel, in an interview in Sao Paulo. ``We have discussed with two or three companies, but discussions are much advanced with this one.''
Arcelor is seeking to increase profit by expanding in Brazil, India and Russia, where iron ore used to produce steel is abundant. The company expects to invest $4 billion through 2010 in its Brazilian unit as the company seeks to boost output.
The company may also buy minority stakes in iron-ore miners in India, Russia or the Ukraine if we become active'' in those countries, Dolle said.
We prefer to enlarge our exposure to steel, investing in some new regions, but if we were active in the former Soviet Union, in Ukraine or Russia, or if we were active in India, it would be mandatory to have access to raw materials because it is too difficult if this was not the case,'' Dolle said. ``In this case, we would be either shareholders of the mine, owners of the mine or having a strong partnership, or some other formula to have access to the iron ore.''
Arcelor expects that the merger of its Brazilian units to create Arcelor Brasil will save the company at least $70 million a year, Dolle said. Arcelor said yesterday it plans to create a holding company for its Brazilian assets, by merging stakes in Cia. Siderurgica de Tubarao, Vega do Sul into Cia. Siderurgica Belgo-Mineira.
Severstal announced net income of $356 for Q2
JSC Severstal announced net income of 10.21 billion rubles ($356 million) for the second quarter of 2005, up by 15 percent from 8.67 billion rubles ($303 million) from the first quarter.
Severstal is among the three leaders of Russian ferrous metallurgy and among twenty world major steel companies and is the largest exporter in Russia.
Severstal as an integrated Iron & Steel works manufactures a wide range of products: hot and cold rolled steel, roll-formed shapes and pipes, rolled sections, a large group of coke products and by-products.
Global stainless steel prices set to fall further
Summer holidays in the northern hemisphere, high stocks and the weakening of raw material prices are combining to send stainless steel markets into the doldrums. Many producers have announced output cuts in an effort to bring the market back into balance. This has been made necessary by the excessive rate of production since mid 2004.
The resulting over-supply has caused falls in stainless prices. Mills have therefore been trying to steady the market by announcing cutbacks in production.
In Europe, ThyssenKrupp Stainless, Ugine & ALZ and Outokumpu have each said they are reducing output
In Asia likewise, stainless mills in Taiwan, Korea and Japan are reducing their operating rates, citing the need to bring down stock levels. Even Chinese cold rolled stainless producers are reining back their production.
So far these cuts have not had much effect on prices and neither are developments in the all-important alloy costs helping the mills to fill their order books.
Hyundai Hysco to Build Steel Plant in Slovakia
Hyundai Hysco said on Friday it will build a steel plate plant in Slovakia next year to supply products to Kia Motors. The steel maker said it will begin construction in February, with products being rolled off production lines as early as in November. Kia plans to open an assembly plant in Slovakia late next year.
Hysco, a Hyundai Motor affiliate and a key steel plate supplier to its affiliates Hyundai Motor and Kia Motors, plans to invest 30 billion won for the plant, which will be equipped with various high-tech facilities, the company said.
Ukraine and EU sign steel trade agreement for 2005-2006
The Ukrainian government and the European Union signed an agreement on trade in some steel products for 2005-2006 in Brussels today, the Ukrainian industrial policy ministry has reported.
For the remaining year 2005, the quota for Ukrainian flat rolled and profile steel exports has been increased to 0.98m tons, and for 2006 it stands at more than 1m
The export duty for Ukrainian iron and steel scrap being EUR30 per ton
Should the export duty for iron and steel scrap be lowered, the quota would be raised respectively. In addition, should the duty be altogether abolished, the quota has to be raised by 43 percent.
Ukraine has promised not to impose restrictions on iron and steel scrap exports. The parties agreed to liberalize trade in steel products as soon as Ukraine joins the WTO.
Higher ore prices help drive Rio Tinto H1 profit
World number-two miner Rio Tinto Ltd is expected to post a doubling of first-half profit on high iron ore prices and shipments driven by China-led demand, which is also pushing annual earnings toward a record.
China's robust demand for raw materials has helped drive up prices for base metals, and sharp increases in annual contract prices for iron ore and coal will be felt more fully by Rio Tinto in the second half of the year.
The company's operations are mostly running at or near their peak output, and Rio Tinto is bringing on increased capacity as it takes advantage of the strong markets.
For the full year, analysts forecast profit before one-offs to reach $4.5 billion, climbing further to $4.8 billion in 2006, according to Reuters Estimates.
Iron ore provided about a quarter of Rio Tinto earnings in 2004 and will be a major profit driver this year after a 71.5 percent increase in annual prices took effect from April 1.
Highveld increases pay offer in a bid to end steel strike
Unions striking at South Africa's second largest steel producer have confirmed that they will take an improved pay offer to their members over the next 24 hours.
The strike has brought to a standstill the production at Highveld Steel of an estimated 2,400mt of steel a day More than 2,000 workers from the National Union of Metalworkers of South Africa and Solidarity have been on strike at Highveld Steel near Johannesburg since Wednesday. They want an 8% wage increase, but the management offered 5.5%.
Now Highveld Steel management, which has seen production crippled by the strike, has offered a 6% pay increase and an improved housing allowance
Dumisa Ntuli, the spokesperson for NUMSA, said: "It is now up to the workers to decide at a meeting later today."
Johan Pieterse, the metals and engineering general secretary of Solidarity, said that the offer would be voted on at a mass meeting Saturday.
Canada Lifts Import Duty on Steel on Indonesian Steel
The Canadian government has lifted anti-dumping and compensation import duties on certain hot-rolled carbon steel plate products from Indonesia.
Canada had imposed these two kinds of import duties on two Indonesian steel exporters-producers on June 27, 2000. The anti-dumping import duties on the two producers totaled 15 percent and 27.6 percent respectively. As result, the export of these products was halted
The lifting of the import duties is being carried out by the Canadian dumping and subsidy authorities after reviewing the impact of import duties on steel sheet products from Indonesia last year. This decision to exempt the import duties was issued on June 27.
So, there are opportunities to export these productd once again, said Indonesian Trade Ministry spokesperson Imam Tambagyo in a press release on Friday.
Ship-breaking gets new life in Pakistan
Ship breakers have placed orders of over a dozen ageing vessels expected to anchor at the Gadani ship-breaking yard within a month as declining prices of old ships coupled with government incentives have brought a new life to the business.
Ship breakers said the international market of ageing vessels witnessed a price decline during the last one week, and the industry, which got withholding tax cut incentives in the budget, capitalised on the fresh development.
Heavy buying of ships by China witnessed some decline, which resulted in a prices cut and allowed other players to move. During the last one week the prices of ships declined to $320 per tonnes from the previous $420 per tones
Ship-breaking activity in the country resumed last month after remaining almost dead for a year after the government in the budget 2005-06 cut the withholding tax from 3 percent to 1 percent.
The industry players predict higher scrap production by the end of 2005-06 and if the existing trend continues they will produce more than one million tonnes scrap.
Steel major SCM, Ukraine unveils Corporate Campaign
System Capital Management (SCM) unveiled an international corporate communications campaign that will highlight the breadth and depth of the company's assets as well as its commitment to Ukraine as it moves toward fuller integration with the global economy.
SCM General Director, Igor Prasolov said: "SCM is at the forefront of Ukraine's effort to integrate our country into the European and international community. Today, we began a campaign that will put Ukraine and SCM's story of rapid progress on to the world stage. We are letting people know that SCM is a substantial Ukrainian company with world-class management standards and global ambitions.
Founded in 2000, SCM is based in Donetsk, Ukraine, whose major shareholder is Rinat Akhmetov, owns a controlling share of over 90 companies.
SCMs diversified business activities cover iron ore, coal mining, steel production, energy generation and distribution, insurance and banking, food and beverages, hospitality services and hotels and is also the proud owner of Ukraines premier football club FC Shakhtar
However, heavy industry has always been at the core of what SCM does. The company is a fully integrated steel producer, owning assets in each link of the production chain from iron ore mining, coking coal mining and coke production, through to semi-finished and finished steel production; as well as pipe rolling and coil production. This high degree of vertical integration delivers complete coverage of our raw materials needs such as iron ore and coke which gives SCM a considerable competitive advantage in todays tight global iron ore and coke markets.
SCM is becoming known in the steel market as a world-class supplier of steel. In 2004, the company produced 15 million tonnes of steel, which it exported to many countries. And 21% of all steel products manufactured in Ukraine are made at SCM plants.
SCMs Mining and metallurgical companies include Azovstal, Ferriera Vlasider S.P.A. (Italy), Khartsyzskiy Pipe Plant, Yenakiyevskiy Metallurgical Plant (Enakevo), Avdeyevskiy Coke Plant, Krasnodonugol, Mariupolskiy Coke Chemical Plant Markokhim, Ore extraction and processing, Central Mining and Ore Processing Plant and Northern Mining and Ore Processing Plant.
Steel major SCM, Ukraine unveils Corporate Campaign
System Capital Management (SCM) unveiled an international corporate communications campaign that will highlight the breadth and depth of the company's assets as well as its commitment to Ukraine as it moves toward fuller integration with the global economy.
SCM General Director, Igor Prasolov said: "SCM is at the forefront of Ukraine's effort to integrate our country into the European and international community. Today, we began a campaign that will put Ukraine and SCM's story of rapid progress on to the world stage. We are letting people know that SCM is a substantial Ukrainian company with world-class management standards and global ambitions.
Founded in 2000, SCM is based in Donetsk, Ukraine, whose major shareholder is Rinat Akhmetov, owns a controlling share of over 90 companies.
SCMs diversified business activities cover iron ore, coal mining, steel production, energy generation and distribution, insurance and banking, food and beverages, hospitality services and hotels and is also the proud owner of Ukraines premier football club FC Shakhtar
However, heavy industry has always been at the core of what SCM does. The company is a fully integrated steel producer, owning assets in each link of the production chain from iron ore mining, coking coal mining and coke production, through to semi-finished and finished steel production; as well as pipe rolling and coil production. This high degree of vertical integration delivers complete coverage of our raw materials needs such as iron ore and coke which gives SCM a considerable competitive advantage in todays tight global iron ore and coke markets.
SCM is becoming known in the steel market as a world-class supplier of steel. In 2004, the company produced 15 million tonnes of steel, which it exported to many countries. And 21% of all steel products manufactured in Ukraine are made at SCM plants.
SCMs Mining and metallurgical companies include Azovstal, Ferriera Vlasider S.P.A. (Italy), Khartsyzskiy Pipe Plant, Yenakiyevskiy Metallurgical Plant (Enakevo), Avdeyevskiy Coke Plant, Krasnodonugol, Mariupolskiy Coke Chemical Plant Markokhim, Ore extraction and processing, Central Mining and Ore Processing Plant and Northern Mining and Ore Processing Plant.
Massey profit nearly triples on coal demand
Coal producer Massey Energy Co. on Thursday reported that second-quarter
profit nearly tripled on soaring coal prices and demand.
Net earnings were $37 million compared with $12.6 million in the year-ago period, the Richmond, Virginia-based company said.
Massey estimated that rail service delays and disruptions and lower-than-projected underground mining productivity reduced its potential shipments by 1.5 to 2.0 million tons in the quarter, a larger portion of which was metallurgical grade coal, which is used in steel-making.
But the company said coal sales in the quarter increased by 9 percent to 11.6 million tons from 10.6 million tons in last year's second quarter. Massey expects to ship between 44.5 and 45.5 million tons in 2005, including 10 to 11 million tons of metallurgical grade coal.
In 2006, Massey expects to ship between 48 and 50 million tons, with average per-ton realizations of around $50. Sales commitments currently total about 44 million tons, with average realization on priced tons of over $47 per ton.
In 2007, the company expects to ship between 48 and 50 million tons, with average per-ton realizations of between $52 and $55. Sales commitments currently total 27 million tons, with average realization on priced tons of about $50 per ton.
US 18-8 stainless scrap under $1300
US 18-8 stainless steel scrap prices fell under $1,300/gross ton this week as one of the major stainless steel mills booked no material for August delivery and two other large mills booked or are expected to book very little material, market sources agreed Thursday.
A buyer for a specialty steel operation said he was suddenly getting offers for material from various sources while "a few months ago it was tough to get material." He said he thought he could buy under $1,300/gt even as he was getting much higher offers, probably because he buys relatively small volumes.
"It's not just the summer slowdown," said a scrap industry source, referring to reduced demand for 18-8, nickel, ferrochrome and other raw materials needed for stainless production.
Vitkovices VHM sales up 37 percent to $106 million in H1
Vitkovice Heavy Machinary VHM the largest production subsidiary of Vitkovice raised sales by 37 percent to CZK 2.6 billion ($106 Million) in the first half announced spokeswoman Eva Kijonkova
Operating profit increased to CZK 289 million from CZK 90 million and gross profit rose from CZK 76 million to CZK 255 million. Revenues within the Vitkovice group jumped by 57 percent to CZK 4.4 billion.
In 2004, the company had over CZK 6.7 billion ($269 million) in revenues and sales of its products and services generated CZK 3.3 billion ($132 Million). Net profit was worth CZK 39.02 million.
"The results improved mainly thanks to strategic investments and a growth in labour productivity," Kijonkova explained. "We have invested hundreds of millions of crowns into technologies for more perfect machines and now are making products with higher value added. The investments are already beginning to pay off in the arrival of new orders," VHM CEO Milan Benek added.
Clevelands Taconite Mining Company Sets Record Earnings
Higher taconite pellet prices helped iron producer Cleveland-Cliffs Inc. set record earnings during the second quarter.
Cleveland-Cliffs reported a record net income of $99.7 million for the quarter, more than three times the previous second quarter record of $32.8 million set in 2004.
For the first half of the 2005, Cleveland-Cliffs established a net income record of $124.9 million, up dramatically from 2004's first half net income of $32.8 million.
Company officials expect 2005 will be a record year for the corporation in terms of production, revenues and earnings, which manages and holds ownership in six North American iron ore mines.
A more than 36 percent increase in Cliffs' long-term pellet sales prices, triggered by an 86 percent hike in international pellet pricing helped boost the company's bottom line. Higher steel pricing and contractual pricing adjustments also contributed to higher profits.
AK Steel's Ashland Works starts new degas facility
AK Steel said that the first heat of molten steel was processed through a new vacuum degasser at its Ashland, Kentucky Works yesterday.
Addition of the new vacuum degassing facility, which is associated with the steelmaking shop, along with a modification to the existing continuous caster, are part of a $65 million modernization of Ashland Works which has been underway during the past year.
The project was completed two months ahead of schedule. Both the degasser and converted straight-mould caster are currently in the ramping-up process. Once in full production, AK Steel expects that its need to purchase premium- priced degassed steel slabs will be eliminated.
"The successful start-up of our new degasser represents the fulfilment of AK Steel's significant investment in modernizing our Ashland Works," said James L. Wainscott, president and CEO of AK Steel. "Completion of this project enables AK Steel to more closely match its steel production capabilities with customer requirements for ultra-low carbon steel products, primarily for automotive and appliance markets."
Headquartered in Middletown, Ohio, AK Steel produces flat-rolled carbon, stainless and electrical steel products, as well as carbon and stainless tubular steel products, for automotive, appliance, construction and manufacturing markets.
Mittal Steel Company N.V. to announces Q2 on 10th August
Mittal Steel Company N.V., the world's most global steel producer, announced today that it will release financial results for the second quarter 2005 on Wednesday, August 10, 2005.
Lakshmi Mittal, Chairman and Chief Executive Officer, and Aditya Mittal, President and Chief Financial Officer, will host a conference call for members of the investment community to discuss the company's financial results and general business operations at 9:30 AM New York Time on Wednesday, August 10, 2005. The conference call will include a brief question and answer session with senior management.
Thai Tycoon Worldwide to build US$1 bln steel plant in Vietnam
Tycoons Worldwide Group, an industrial group from Thailand, will invest up to 1 billion USD to build a steel plant in central Quang Ngai province, local authorities announced July 28
The furnace steel factory will cover 200 hectares in the provinces Dung Quat Industrial Zone, authorities said. Construction of the steel factory is set to begin by mid-2006, and is expected to be completed in 2015
This is the second biggest project in the IZ so far after the 2.5 billion-USD Dung Quat oil refinery.
BHP & Boasteel forge new supplier - customer alliance
Global resources group BHP Billiton and China's Baosteel on Friday announced that they had signed a deal to do joint technical research to enhance the use of raw materials in iron and steel making.
The agreement provides a long-term framework for a range of specific joint technical studies. Cooperative studies in iron ore have been agreed on and discussions on other raw material studies are being held.
BHP Billiton Chief Commercial Officer Marius Kloppers said that the agreement would enable joint understanding of the true value of BHP Billiton products under conditions specific to Baosteel's operations.
"The studies will facilitate the ideas of engineers and operators, allowing them to road-test new products and convert their results into supply contracts," Kloppers added. The results of this joint research will enable BHP Billiton to tailor marketing solutions for Baosteel, providing benefits for both companies," he said
"The agreement gives China's largest steel company a platform to conduct strategic technical work with the world's largest resource company, in what we believe will be a significant customer-supplier alliance.
Canadian Steel Partnership Council (CSPC) formed
The creation of the Canadian Steel Partnership Council (CSPC) was announced today by the Canadian Steel Producers Association (CSPA). This industry-led initiative will bring together federal and provincial governments, the steel producing industry, including suppliers and customer representatives, labour and the education sector to address the global competitiveness and sustainability of the Canadian steel industry.
The initial areas of focus within the CSPC will include: international trends that are influencing the Canadian steel industry and affecting international trade; investment and access to capital; innovation, research and development; market development; energy and the environment; and human resources issues, including ensuring sufficient availability to skilled trades and qualified technical professionals.
The Canadian Steel Producers Association (CSPA) is the national voice for Canada's $11 billion steel-sales industry. Its 17-member plants account for 100% of steel production.
Argentinas Acidnar announces $48.6 net for Q2
Acindar Industria Argentina de Aceros SA , Argentina's biggest maker of steel rods for the automobile and construction industries, said its net income rose to 139 million pesos ($48.6 million) in the second quarter from 113 million pesos in the same period last year.
TopBrazils Samarco exports 7 million ton pallets in H1
Samarco sold 7 million tonnes of iron pellets and iron ore concentrates during the first six months of the year. The company export everything they produce. The volume was 7% smaller than that registered in the same period last year. The revenue, however, increased in 24% and reached US$ 450.5 million.
Last year, the company sold 14.1 million tonnes of iron pellets, or 2.8% more than in the previous year. In the same period they had revenues of US$ 778.1 million and profits of US$ 282.2 million
Samarco is a Brazilian mining company belonging to the Companhia Vale do Rio Doce (CVRD) and the multinational BHP Billiton
The Middle East and Africa are amongst the main destinations for exports and account for 22% the company's sales.In the company's client portfolio, the two markets are only surpassed by China, which absorbed 34% of sales in the first semester. In third place is Europe, with 20%, followed by the remaining countries in Asia, with 16%, and the Americas, with 8%.
Amongst Samarco's clients in the Middle East and Africa are Egypt, Libya, Saudi Arabia, Bahrain and Qatar. The company has exported to the Arab countries since the beginning of the 1980s and has long term contracts signed with clients in the region. Samarco closed an US$ 80 million deal with Qatar Steel Company (Qasco) to supply 1.7 million tonnes of iron pellets until 2010. Before that, in 2003, the company closed a US$ 125 million contract to supply raw material to Libyan Iron & Steel Co. for five years.
