August, 13 2005
Indian Govt drafting National Steel Policy
The government is formulating a National Steel Policy (NSP) to make India self reliant and globally competitive in the steel sector, Steel Minister Ram Vilas Paswan said today. Ministry had constituted an 'expert group' to formulate guidelines pertaining to Iron ore, Manganese Ore and Chrome Ore regarding giving preferential mining rights to some persons. The 'expert group' is expected to submit its recommendations to the government by the end of this month.
NSP acknowledges that the country has rich endowment of iron ore and non-choking coal and outlines the policy for making such critical inputs available to the industry. NSP envisages an indigenous steel production of about 110 million tonnes per annum by 2020, implying a compounded 7.4 per cent annual growth. Apart from the broad-based policy statement, the NSP will also chalk out specific action points for the government to achieve the policy objectives.
Explosive scrap found abandoned in a canal
In another major haul of war scrap, 35 bags with 42 live missiles and other explosives were found near an irrigation canal in the Western UP district.
The bags were found during routine police patrolling near a canal in Chand Samad village and contained a large quantity of war scrap including of missiles, rockets, mortars, anti-tank and anti-aircraft bombs. Of these, 42 were live missiles and a bomb disposal squad was called in from Ghaziabad to defused the heavy artillery.
Some factories in western UP that import scrap from the Gulf countries had
been identified and further investigations were on.
On September 30, 2004, an explosion at Bhushan Steel Company in Ghaziabad where some war scrap was stored killed ten people.
Capital dredging all set to begin at Vizag Port
The capital dredging to deepen the inner harbor of the Visakhapatnam Port will begin soon. The Visakhapatnam Port Trust (VPT) had awarded the contract to the Dredging Corporation of India (DCI), which is believed to have sub-contracted the job to Dharti Engineering of Hyderabad. The work, estimated to cost Rs 30 crore, would be completed before May 2006.
Once the dredging is complete, the Port authorities will be able to bring Panamax bulk carriers into the inner harbor. This will be possible because the draught within the inner harbor and in the turning basin will rise from around 10 meters to 11 meters by May 2006.
There are proposals for more dredging in the same place to increase draft to 12.5 meters by 2007 and finally to 14 meters by 2008.
Indian Govt to extend subsidy to shipbuilding sector till 2012
The Union Shipping Ministry is seeking approval for extension of the shipbuilding subsidy scheme by another five years to 2012. The Ministry will also look into the level of subsidy to be given. Officials said the Ministry was seeking another extension as it thought that the industry still needed government support to compete with foreign shipbuilding companies.
A 35 per cent shipbuilding subsidy scheme was introduced in 1997 for a period of five years for public sector shipyards in the country. It was extended for another five years till 2007 and the government then allowed the private sector yards to claim the subsidy. The subsidy was reduced to 30 per cent during this period.
Under the current policy, 30 per cent subsidy on the bid price is available to the shipyards on domestic orders obtained through a global tendering process for the construction of sea-going minimum 80 meter long merchant vessels and for the export orders obtained through a global tendering process or otherwise for the construction of any type of vessel.
German steelmakers see signs of recovery
Germany's two largest steelmakers offered further evidence on Friday that the downturn in the industry could be milder than feared. ThyssenKrupp, the industrial conglomerate, and Salzgitter, the country's second-biggest steelmaker, both said conditions were returning to normal as production cuts started to bear fruit and high inventory levels were slowly reduced.
"There is now light at the end of the tunnel for this downturn," said Michael Shillaker, analyst at CSFB. "Europe will recover later this year or early next year."Both steelmakers raised their forecasts for the full year after enjoying a better-than-expected previous quarter. But both cautioned there was unlikely to be a big pick-up this year as falling prices and demand slowly improve in the second half.
Their outlooks echoed that of Mittal Steel, the world's largest steelmaker, which said on Wednesday that profits would decline in the third quarter but would rebound at the end of the year as demand and prices increased in the "short-term".
China launches probe into coal mining accident
China Friday opened a top-level investigation into a coal mining accident in southern China which has claimed at least 123 lives, the latest in a string of disasters despite repeated government pledges to improve safety.
The investigation into the accident this week in Guangdong, in which the miners were drowned underground after the mine was flooded, will take at least two to three months, officials said.
The accident has already attracted unprecedented condemnation from the cabinet and the state media, which has openly blamed greedy local officials for allowing illegal mines to operate in return for a share of the profits.
The central government relies on coal for about two-thirds of the country's energy, but has been unwilling or unable at the local level to enforce safety during a huge ramp-up of production in recent years.
China's annual coal production has nearly doubled since 2000 to just under 2bn tonnes, with new, smaller mines proliferating with the protection of local officials to meet demand from power and steel industries.
China accounts for a third of global coal production but 80 per cent of mining deaths, with 2,672 lives lost in the first half of this year, according to official statistics, a figure widely considered to understate the real toll.
POSCO sees China as a serious threat
China, once regarded as a land of opportunity for Korean businesses, is turning into a threat and POSCO, the nations largest steelmaker, is taking it very seriously.
In a recent meeting with corporate executives, Lee Ku-taek, chairman of POSCO raised concerns over a fast inflow of Chinese steel products to Korea as China which has been the biggest export market of POSCO has started shipping low-priced steel products to Korea from the latter part of this year. Rising steel imports from China have afftected POSCO. The steelmaker announced in July it would cut steel production by 300,000 tons this year to reduce inventories and prevent a sharp price fall. The rare measure was taken as a surge in Chinese steel imports has weighed on already dull domestic demand, which leads to a sharp increase in domestic steel inventories.
Chinas steel exports to Korea soared to 4.12 million tons in the first half of the year, up from 1.59 million tons in the same period last year, with Chinese products accounting for about 40 percent, according to the Korea Iron & Steel Association.
As part of efforts to cope with rising Chinese competition, POSCO has shifted the focus on high-value added steel products, while tapping overseas demands by establishing steel mills abroad and has planned a $12 billion investment in India to build a 10 million ton steel plant. The steel company has also pushed to build a production line in China but it is uncertain as the Chinese government has recently barred overseas producers from taking controlling stakes in Chinese steel mills.
Evraz acquires Palini & Bertoli plate mill in Italy
Evraz Group announced completion of acquisition of 76% shares of Italian Plate maker Palini e Bertoli SpA. The remaining 24% sharea would be held by Annia S.r.l. the former owners of Palini's and senior management members.
The acquisition was financed by a combination of debt and equity. MPS Venture SGR, a private equity arm of Monte dei Paschi Group, was one of the selling shareholders in the transaction. Morgan Stanley & Co. Limited acted as financial advisor and Pavia e Ansaldo acted as a legal advisor to Evraz on this transaction. Debt finance was provided by ABN AMRO N.V. Annia S.r.L. was supported by Studio Legale Montanari e Associati.
The acquisition will allow Evraz Group S.A. to build on Palini's strengths as a producer of customized, high-quality plate products to penetrate new geographic markets, secure captive customer base for its slabs outside Russia and further improve the margin from the sale outside Russia of higher value-added steel products.
The acquisition of Palini & Bertoli is in line with Evraz strategy of capturing additional margin on their slabs through focused acquisitions of high-quality re-rolling facilities worldwide. This is second acquisition after Vitkovice Steel to establish Evraz as a major player in the high value-added European steel plate market.
Evraz Group is one of the largest vertically-integrated steel and mining businesses with operations mainly in the Russia. In 2004, Evraz produced 13.7 million tonnes of crude steel. Evraz Group is a listed company on the London Stock Exchange (LSE). The company listed its global depositary receipts (GDRs) on the LSE on June 2, this year, after raising $422 million from new investors.
Evrazs principal assets include three of the leading steel plants in Russia: Nizhny Tagil (NTMK) in the Urals region, and West Siberian (Zapsib) and Novokuznetsk (NKMK) in Siberia. Evraz Groups fast-growing mining businesses comprise the Kachkanarsky (KGOK), Evrazruda (acquired in March 2005) and Vysokogorsky (VGOK) iron ore mining complexes and NeryungriUgol Coal Company and an equity interest in the Raspadskaya coal mine. The mining assets primarily supply. Evraz Groups steelmaking operations, enabling the company to be a vertically-integrated steel producer, limiting its exposure to fluctuations in the prices of key raw materials. Evraz obtained over 70% of its iron ore requirements from KGOK, Evraz Ruda and VGOK in 2004 and also obtains the majority of its coking coal from Raspadskaya and other affiliated producers. Evraz also owns and operates the Nakhodka commercial sea port, in the Far East of Russia, which facilitates access to Asian export markets.
Palini & Bertoli is a rolling mill in Northern Italy that produces steel plate for the construction, shipbuilding and automotive industries. Palini's total output in 2004 was 356,000 tonnes of rolled products and it generated revenue of 183 million and earnings before interest, tax and depreciation and amortization of approximately 31 million under.
Mittal Steels new auto grade steel plant in Czech
The new EUR 300-350 million plant for sheet metal production that the Mittal Steel group plans to build in Central Europe should be located in Ostrava, North Moravia, or the Polish cities of Krakow or Katowice. The new facility would supply products to new car producing plants in the Czech Republic and neighbouring Slovakia.
Mittal Steel also controls Czech steelworks Mittal Steel Ostrava (previously Nova hut), have already been considering the investment for half a year. Mittal Steel Ostrava supervisory board deputy chairman Frantisek Chowaniec said that it is necessary to invest in the production of sheet metal for the automotive industry and white goods production in Central Europe in the near future.
Only Arcelor in Luxembourg, Germany's Thysen-Krupp and Austria's Voest-Alpine manufacture sheet metal for the car industry in Europe at present.
ThyssenKrupp announces additional production cut for July-Sept
ThyssenKrupp AG said its full year steel production cuts will reach about 830,000 tonnes, 130,000 tonnes more than the previously announced cutbacks of 700,000 tonnes, which has been planned for July September quarter.
ThyssenKrupp cut steel production by about 500,000 tonnes, or 10 pct of output in quarter ending March. It then announced another 200,000 tonnes of production cuts during the quarter ending June.
It has not planned any production cuts in October December quarter.
Japan approves tariffs on U.S. steel
Japan's Cabinet on Friday formally approved a decision to impose 15 percent retaliatory tariffs on U.S. steel imports earlier announced decision applicable on US steel products, including ball bearings and airplane parts starting September 1 in retaliation for American steel industry protection measures.
The tariffs, which could rise as high as 5.7 billion yen ($51 million), will be the first time Japan takes such retaliatory action against a trade partner.
Japan has said its tariffs will not be imposed if the Byrd Amendment, named for its sponsor, West Virginia Senator Robert Byrd is repealed by Sept. 1.
Tokyo made the move in response to Washington's failure to repeal duties imposed on Japanese steel products under the Byrd amendment, an antidumping law ruled illegal by the World Trade Organization in 2003.
Washington began in 1999 to impose penalty tariffs on steel products from Japan, Brazil and other countries on allegations those countries were selling their products at unfairly low prices.
The Byrd amendment, passed in October 2000, awarded American companies the revenue collected by the U.S. government on such duties.
The Japanese decision follows similar moves by the 25-nation European Union and Canada, which slapped penalty tariffs on millions of dollars' worth of U.S. imports in retaliation for the amendment on May 1.
Mr Mittal may dilute stake in Mittal Steel by acquisitions
Lakshmi Mittal, owner of Mittal Steel Co, the world's largest steelmaker, may dilute its 88 per cent stake in the company through acquisitions rather than issuing new shares, company spokeswoman Nicola Davidson said.
Mittal reduced his ownership in the company to 88 per cent from 97 per cent when he bought Richfield, Ohio-based International Steel Group in April for $4.5 billion in cash and stock. Similar acquisitions may further dilute his family's control of the company, Davidson said on Thursday.
The company is seeking acquisitions from to Ukraine and Turkey to raise its share of global steelmaking amid rising demand from China and India.
Dongkuk Steel joins steel majors by announcing production cut
Dongkuk Steel Mill Co., South Korea's third-largest steelmaker, cut its sales and production forecasts for this year by 8 percent. The company has announced to reduce its sales forecast to 3.3 trillion won ($3.3 billion) from 3.6 trillion won levelas as announced on May 4th. It will also cut output to 2.7 million metric tons.
Steelmakers worldwide are under pressure to cut prices as higher output from China increases supplies. Production cuts by European and U.S. steelmakers are also hurting demand for steel to turn into other products, weighing on scrap and slab prices. The sluggish domestic economy is also hurting demand for steel used in construction, the company said.
Aker Shipyards nearly double profits in Q2
Aker Yards ASA announced that its net profits and order backlog had nearly doubled in the second quarter from the previous year, citing growth in all its business sectors
The Oslo-based shipbuilder reported a net profit of 156 million kroner ($24.6 million) for the April-through-June quarter, compared to 80 million kroner for the same period in 2004.
Quarterly revenues rose to 4.05 billion kroner ($640 million) from 3.32 billion kroner a year earlier, and the group's order backlog rose to 36.3 billion kroner ($5.73 billion), from 16.5 billion kroner.
Aker Yards said its results were helped by easing prices and greater availability for the steel used in shipbuilding.
The group includes all the shipyards of the former Aker Kvaerner ASA group, except the Kvaerner Philadelphia Shipyard Inc. in the United States. The company employs about 13,000 people at 13 yards in Norway, Finland, Germany, Romania and Brazil.
Baosteel's shareholders approve reform plan
In a step forward for China's shareholding reform program, shareholders in the country's biggest steelmaker, Baoshan Iron and Steel Co., on Friday approved its proposed plan to sell off non-tradable, government-held shares.
Baosteel will be the second major state-owned Chinese company to sell off its non-tradable shares. Last week, China Yangtze Power Co., operator of the massive Three Gorges hydroelectric project, also got approval to move ahead. The two companies are among nearly four dozen chosen by the government to first carry out the reforms.
Regulators recently renewed an effort to sell off non-tradable shares, which constitute two-thirds of China's market capitalization, in hopes of revitalizing the country's ailing stock markets.
ThyssenKrupp to reorganize steel operations
Steelmaker Thyssen Krupp AG said Friday it will reorganize its steel production operation as it reported lower third-quarter earnings because of declining prices and the sale of two other units.
The company said it would reorganize its steel operations and form two units, one for carbon steel and another for stainless steel production. They will be called ThyssenKrupp Steel and ThyssenKrupp Stainless.
Ekkehard Schulz, the 64-year-old chief executive saw his contract extended by two years to January 2009 while Ulrich Middelmann, the current head of the steel division, loses that job but remains deputy chief executive.
AP Mller-Maersk Group completes acquisition of Royal P&ONL
The A.P. Mller-Maersk Group has completed its acquisition of Royal P&O Nedlloyd (P&ONL) NV has been completed as all conditions to the offer have been fulfilled and payment for the tendered shares made.
Mr Eric Sisco, MD of Maersk Espa S.A. and Area Manager of Maersks Spain, Portugal and Morocco will assume the position as CEO of Royal P&O Nedlloyd NV
P&O Nedlloyd and Maersk Sealand will continue to operate as separate shipping lines until February 2006 to offer customers stability of network and services throughout the coming peak season, and to honour P&O Nedlloyds commitments to various conferences and consortia.
Maersk Sealand and P&O Nedlloyd will be branded under the new name of Maersk Line After February 2006. Maersk Logistics and P&O Nedlloyd Logistics will be integrated under the brand name Maersk Logistics.
US Steel industry slogging through soft period
U.S. steel mills have cut back production but continue to slog through a quarter that many companies say will be the low point of the year and a dramatic drop from the third quarter of 2004, when the market hit what producers and analysts now agree was an artificial high.
Six weeks into the third quarter, steelmakers are struggling to balance lower prices and still-sluggish demand for their products with the soaring costs of scrap and natural gas.
Key industry players, including Mittal Steel, US Steel and Nucor Corp have all warned a drop in third-quarter results.
Last year's third quarter was the best the industry ever had. There were companies who made as much in a year in their prior histories as they made that quarter
Producers could see a fourth-quarter rebound if prices rise as expected in September, if demand climbs as projected and if domestic producers maintain supply discipline rather than quickly ramping up production.
Mittal Steel USA bringing one furnace back idling another
Mittal Steel USA is returning one blast furnace to service, then will idle another for maintenance, in order to maintain stable production in its eastern region over the next several months.
Mittal Steel USA - Cleveland will restart blast furnace C-6 Aug. 23 in preparation for the scheduled idling of Cleveland's other iron maker, blast furnace C-5, in October. The company took C-6 out of production in May, accelerating maintenance that had been scheduled to be done later, in response to inventory-related market softness.
Similarly, C-5 will be idled in order to perform extensive repairs to the furnace top.
The overlap also will enable the Cleveland plant to cover the company's steelmaking needs during an upcoming 20-day maintenance outage at Mittal Steel USA - Sparrows Point, where a complete reline is needed at one of the Maryland plant's basic oxygen furnaces.
Specialty Coal project application lodged
Specialty Coal has lodged its environmental assessment and development application with the Department of Infrastructure Planning and Natural Resources. A spokesperson for the Department said that he envisaged the documents would be on public exhibition for 30 days with submissions welcomed by the public. The exhibition period won't begin until the Department had had opportunity to look over the documents.
Specialty Coal plan to mine coal seams adjacent to the old Great Greta underground coal mine at Glendon Brook.
Already there has been some public objection to the proposal, largely because of the company's intention to transport coal by road from Glendon Brook, into Singleton down Queen Street, into Campbell Street and back onto the highway to the Rixs Creek coal mine coal loader.
Among those objecting to the proposal are the Glendon Brook Action Committee and the St Patrick's Parish Action Group.
This is the second development application lodged with DIPNR by Specialty Coal. Back in 2003 the Department indicated to the developer that it was significantly concerned about the proposal, particularly the proposal to haul coal by road from the mine site.
Fortescue agreement may be annulled
Fortescue Metals was left embarrassed when, only hours after it announced the signing of a native title agreement for its key iron ore tenements in the Pilbara, the local claimants said they wanted the agreement annulled. Fortescue had trumpeted the land access agreement, saying it removed all native title constraints on its tenements within the 40,000 square kilometre Nyiyaparli Native Title Claim area, which contains 80 per cent of the company's targeted resources. The mining company said the deal signed with the local Nyiyaparli People would act as a framework for further agreements on infrastructure and the remaining resource area.
But on Friday afternoon the Nyiyaparli People told the Yamatji Land and Sea Council in WA that they had not had legal representation at the signing and had not understood the agreement. Native title lawyer James Fitzgerald of Chalk and Fitzgerald, representing the council, said the Nyiyaparli People had now asked the council to have the agreement rendered void. Mr Fitzgerald said English was the second language of all of the signatories and most of them could not read.
Stelco announces filing of 34th monitor's report
Stelco Inc. advised today that the Thirty Fourth Report of the Monitor in the matter of the Company's Court-supervised restructuring was filed late this afternoon.
The purpose of the Report is to advise the Court with respect to the process for the filing of and determination of claims by the USW International and USW Locals 8782 and 5328. The Report also advises that the rapidly changing dynamics of the North American steel market have affected Stelco's internal financial forecasts and that further updated forecasts are expected to be provided to stakeholders on a confidential basis in due course.
Stelco Inc. is a large, diversified steel producer. Stelco is involved in major segments of the steel industry through its integrated steel business, mini-mills, and manufactured products businesses.
Salzgitter net goes up four fold in Q2
Salzgitter AG reported a fourfold rise in second quarter pretax profit to 210 million euros ($261 million) and set a target of around 600 million euros for the full year.
TopLoan problem threatens Leo Incs steel mill plan
For more than three years, the chief executive of Leo Inc. has been trying to raise the funds needed to build a small mill in the Jefferson Riverport International complex in southwestern Jefferson County. In that time, the scope of the project has nearly doubled in size to a $374 million investment
State economic development officials have twice approved Leo for tax breaks and the China Development Bank is willing to put up most of the funds to build the plant, But lingering financial issues still have the project on hold.
Botsford said the project is still where it was at the end of last year when the Chinese bank has agreed to bankroll $340 million of the project if Botsford can line up assurances that other investors will buy the bank's share once the mill has been built and tested.
The proposed 1.5 million tons steel mill can sell the entire production within 150 miles of Louisville and serve to city's two Ford plants, GE's appliance plant, Toyota's factories in Kentucky and Indiana and Jeffboat's operations in Indiana. Ohio River provides an inexpensive way of shipping in steel slabs for processing.Botsford said he still believes his project could be highly profitable.
China July wholesale prices up 2.7 pct YOY
China's enterprise commodity price index, which measures wholesale price levels, rose 2.7 pct in July from a year earlier, the People's Bank of China said in a statement on its website. That compared with three pct year-on-year growth recorded in June. For the first seven months, wholesale price levels were up 3.5 pct over the same period last year. China's consumer price index (CPI) rose 1.8 pct YOY in July as per National Bureau of Statistics.
Coal prices rose 20.28 pct year-on-year but were down 1.47 pct month-on-month.
Pig iron prices edged up 1.36 pct year-on-year but were down 3.83 pct from a month earlier.
Steel product prices rose 1.14 pct from a year earlier but were down 0.85 pct from June.
Schnitzer expands stake in auto parts
Schnitzer Steel Industries Inc , the Portland metals recycler and steelmaker is buying Greenleaf, a rival chain of wholesale parts dealers based in Texas formerly owned by Ford Motor Co.
Schnitzer, through two subsidiaries, will pay $23.5 million to buy Arlington, Texas-based Greenleaf and $21.5 million to Ford Motor Co. to acquire five pieces of land leased by Greenleaf, according to a report filed Thursday with the U.S. Securities and Exchange Commission.
Greenleaf operates the nation's second-largest chain of auto recycling and dismantling businesses, with 22 stores in 11 states, including Florida and Texas. But its operation differs from Pick-n-Pull, Schnitzer's 30-store chain of self-service auto stores concentrated in California. Greenleaf sells parts from wrecked autos wholesale, delivering parts to collision repair shops and auto repair garages. Pick-n-Pull allows do-it-yourselfers to scavenge parts for set fees.
Zimbabwes ZISCOs loan to China be repaid through export proceeds
Zimbabwe, whose international creditworthiness is currently in a shambles and faces expulsion from the International Monetary Fund if it fails to settle its arrears amounting to US$296 million. have played into China's hands by tying itself to an ambitious loan service structure that commits 25 percent of exports to the them. A six-day visit to China by President Robert Mugabe and his entourage, saw the signing of several Memoranda of Understanding (MOUs) of which the finance cooperation agreement on exports was one of them.
Trade between the two countries is currently tilted in favour of Zimbabwe with China's export estimated at US$32 million against US$159 million in imports comprising mainly tobacco, the country's single largest export earner. Put simply, about US$40 million of export receipts would be applied towards debt servicing.
State-owned enterprises indebted to Chinese companies would also need to demonstrate commitment to executing their standing arrangements. State owned Zimbabwe Iron & Steel Company ISCO borrowed US$35 million from the Export and Import Bank of China that was insured with China Export and Credit Insurance Corporation. The loan was meant for the supply of equipment to refurbish ZISCO's Blast Furnace Number 4. Most of the loans were insured by Sinosure, which has of late expressed concern over Zimbabwe's failure to adhere to its repayment schedules.
China Angang 1H net rises 71%
Angang New Steel Co. China's largest listed steelmaker by market capitalization, announced that its first half-net profit rose 71% from the year-earlier period, supported by strong domestic demand for steel products.
Net profit for the six months ended June 30 totaled CNY1.22 billion, up from CNY715.7 million in the year-earlier period. Revenue rose to CNY14.18 billion from CNY9.88 billion.
The company's acquisition in December of an upstream steel producer from its parent company also likely boosted its first-half result. The company paid its parent, Anshan Iron & Steel Group, about CNY18 billion to acquire the entire interest in Angang New Steel & Iron Co. Angang said the acquisition would increase its earnings more than five times in 2005.
Xstrata hunting for acquisitions
Mick Davis, CE of diversified miner Xstrata, said yesterday that he would like to add at least one more commodity to the groups mix of businesses, and that Xstrata was actively seeking acquisitions opportunities. Xstrata, which mines coal, copper and zinc, also recorded 81% jump in pretax profits for the first half of the year,
Xstratas coal business, based in Australia and SA, did particularly well following a rally in the price of coking coal, which is used to make steel.
The coal division accounted for 45% of operating profit and Xstrata plans to expand coking coal production by up to 70% and thermal coal production by up to 65% in the next few years.
We would prefer a better diversification than we have at the moment, said Davis. Iron ore and platinum would be his preferred businesses to enter, though he was always looking at a range of opportunities. The iron-ore business was very challenging to get into because of the dominance of BHP Billiton and Rio Tinto, especially in Australia.
Russian duties on Ukrainian steel till mid December
The Russian government has extended until mid-December duties on steel rods imported from Ukraine, an Economic Development Ministry official said Friday. "The Russian prime minister has signed a resolution to this effect. The 21% import duty on these products will stand for another four months," the official said.
In August 2002, Russia introduced an import duty on steel rods produced by subsidized steel mills in Ukraine to ensure fair market terms and protect Russian steel producers. The duty was expected to expire on August 14, 2005.
Russia's largest steel plants Mechel, Evraz and Severstal petitioned the government and the Economic Development Ministry to extend the term of the import duty.
ThyssenKrupp quarterly profits down by 54%
Steelmaker Thyssen Krupp A,G Duesseldorf, Germany's biggest steel company, said net income in quarter fell to euro154 million (US$191 million) compared with euro323 million in the year-ago period. Revenue, however, rose to euro11.28 billion (US$13.9 billion), up 12 percent from euro10.06 billion.
Orders during the quarter were up 6.6 percent to euro10.58 billion (US$13.12 billion), compared with euro9.92 billion the year before.
The company said its net profit was lower because of a euro139-million (US$172-million) loss on the sale of its metal cutting unit, which was sold to New York-based Maxcor. The unit, which employs 2,735 workers, had sales of euro490 million in 2004. A purchase price wasn't disclosed.
ThyssenKrupp said it expected to post pretax earnings of euro1.7 billion (US$2.1 billion) for 2005, compared with the euro1.5 billion it posted in 2004.
Despite the more difficult economic environment ThyssenKrupp held up well in the third quarter,'' the company said in the statement. ``We expect an overall positive development in the remainder of the year.''
ThyssenKrupp Chief Executive Ekkehard Schulz, 64, has focused on making his company the world's largest maker of flat stainless steel, used for carmaking. Prices for the product fell 11 percent in the quarter. ThyssenKrupp makes 42 percent of its earnings by supplying car parts to companies such as Porsche AG and building and servicing elevators.
AK Steel's Ashland Works starts using new degasser
First heat of molten steel was processed through a new vacuum degasser at its Ashland, Kentucky Works. 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.
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. The project was completed two months ahead of schedule. Both the degasser and converted straight-mold 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.
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.
INTERMET receives Court approval of financing commitment
INTERMET Corporation a diversified manufacturer of cast-metal components, today announced that the United States Bankruptcy Court for the Eastern District of Michigan has approved the Company's motion to enter into an equity financing Commitment Letter under which R2 Investments, LDC, and Stanfield Capital Partners LLC have agreed to underwrite a $75 million equity investment in INTERMET in connection with INTERMET's proposed Plan of Reorganization.
The court also approved the Company's amended Disclosure Statement. In addition, the court approved the Company's proposed solicitation and balloting process. INTERMET will distribute the Disclosure Statement and balloting materials to all creditors in order to solicit their votes in support of the Plan.
Victaulic Piping at Burns Harbor saves cost
Mittal USA Burns Harbor had plans to rebuild the No. 1 slab caster at its Northwest Indiana works, and the project managers realized theyd need reliable products and efficient service to minimize operating disruptions. For one critical aspect of the project, the piping systems, Mittal chose Victaulic Piping Systems, which had installed piping system in another part of the plant 15 years earlier, making Burns Harbor one of the first steel mills to use grooved piping components on such a large scale.
Victaulic is single-source supplier for mechanical pipe-joining products, and ISG chose it with the expectation of offer cost savings and on-site efficiency, but also to keep the project on time and on budget. Victaulic supplied a complete line of grooved valves, fittings, and couplings for various utility services with the help of Graycor Corp, Aker Kvaerner and Correct Construction Co. These included compressed-air lines for actuating controls and lubrication; nitrogen lines for purging, chilled water, cooling-water supply, and return lines; and lake-water supply and return lines.
Grooved system is easy to maintain, our crew can seamlessly perform maintenance during planned outages without having to shut down the mill entirely and incur revenue loss.
